100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0007

 

Introduced 1/11/2017, by Sen. Terry Link

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Chicago Casino Development Authority Act. Provides for the creation of the Chicago Casino Development Authority, whose duties include promotion and maintenance of a casino. Amends the Illinois Lottery Law. Establishes the Division of Internet Gaming within the Department of the Lottery for the purpose of administering, regulating, and enforcing a system of Internet gaming (and makes conforming changes in other Acts). Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming at race tracks (and makes conforming changes in various Acts). Further amends the Illinois Horse Racing Act of 1975. Makes various changes concerning Board members. Indefinitely extends the authorization for advance deposit wagering. Contains provisions concerning testing of horses at county fairs and standardbred horses. Further amends the Riverboat Gambling Act. Changes the short title to the Illinois Gambling Act and changes corresponding references to the Act. Adds additional owners licenses, one of which authorizes the conduct of casino gambling in the City of Chicago. Makes changes in provisions concerning the admission tax and privilege tax. Makes other changes. Contains a severability provision. Effective immediately, but does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, and 13 of the 100th General Assembly become law.


LRB100 06307 AMC 16345 b

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB0007LRB100 06307 AMC 16345 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
ARTICLE 1.

 
5    Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 1-2. Legislative intent.
9    (a) This Act is intended to benefit the people of the City
10of Chicago and the State of Illinois by assisting economic
11development and promoting tourism and by increasing the amount
12of revenues available to the City and the State to assist and
13support the City's pension obligation in accordance with Public
14Act 99-506.
15    (b) While authorization of casino gambling in Chicago will
16enhance investment, development, and tourism in Illinois, it is
17recognized that it will do so successfully only if public
18confidence and trust in the credibility and integrity of the
19gambling operations and the regulatory process is maintained.
20Therefore, the provisions of this Act are designed to allow the
21Illinois Gaming Board to strictly regulate the facilities,
22persons, associations, and practices related to gambling

 

 

SB0007- 2 -LRB100 06307 AMC 16345 b

1operations pursuant to the police powers of the State,
2including comprehensive law enforcement supervision.
3Consistent with the Gaming Board's authority, the Gaming Board
4alone shall regulate any Chicago casino, just as it now
5regulates every other casino in Illinois.
 
6    Section 1-5. Definitions. As used in this Act:
7    "Authority" means the Chicago Casino Development Authority
8created by this Act.
9    "Casino" means one temporary land-based or water-based
10facility and one permanent land-based or water-based facility
11at which lawful gambling is authorized and licensed as provided
12in the Illinois Gambling Act.
13    "Casino Board" means the board appointed pursuant to this
14Act to govern and control the Authority.
15    "Casino management contract" means a legally binding
16agreement between the Authority and a casino operator licensee
17to operate or manage a casino.
18    "Casino operator licensee" means any person or entity
19selected by the Authority and approved and licensed by the
20Gaming Board to manage and operate a casino within the City of
21Chicago pursuant to a casino management contract.
22    "City" means the City of Chicago.
23    "Entity" means a corporation, joint venture, partnership,
24limited liability company, trust, or unincorporated
25association.

 

 

SB0007- 3 -LRB100 06307 AMC 16345 b

1    "Executive director" means the person appointed by the
2Casino Board to oversee the daily operations of the Authority.
3    "Gaming Board" means the Illinois Gaming Board created by
4the Illinois Gambling Act.
5    "Mayor" means the Mayor of the City.
 
6    Section 1-12. Creation of the Authority. There is hereby
7created a political subdivision, unit of local government with
8only the powers authorized by law, body politic, and municipal
9corporation, by the name and style of the Chicago Casino
10Development Authority.
 
11    Section 1-13. Duties of the Authority. It shall be the duty
12of the Authority, as an owners licensee under the Illinois
13Gambling Act, to promote and maintain a casino in the City. The
14Authority shall own, acquire, construct, lease, equip, and
15maintain grounds, buildings, and facilities for that purpose.
16However, the Authority shall contract with a casino operator
17licensee to manage and operate the casino and in no event shall
18the Authority or City manage or operate the casino. The
19Authority may contract pursuant to the procedures set forth in
20Section 1-115 with other third parties in order to fulfill its
21purpose. The Authority is responsible for the payment of any
22fees required of a casino operator under subsection (a) of
23Section 7.9 of the Illinois Gambling Act if the casino operator
24licensee is late in paying any such fees. The Authority is

 

 

SB0007- 4 -LRB100 06307 AMC 16345 b

1granted all rights and powers necessary to perform such duties.
2Subject to the provisions of this Act, the Authority and casino
3operator licensee are subject to the Illinois Gambling Act and
4all of the rules of the Gaming Board, which shall be applied to
5the Authority and the casino operator licensee in a manner
6consistent with that of other owners licensees under the
7Illinois Gambling Act. Nothing in this Act shall confer
8regulatory authority on the Chicago Casino Development
9Authority. The Illinois Gaming Board shall have exclusive
10regulatory authority over all gambling operations governed by
11this Act.
 
12    Section 1-15. Casino Board.
13    (a) The governing and administrative powers of the
14Authority shall be vested in a body known as the Chicago Casino
15Development Board. The Casino Board shall consist of 5 members
16appointed by the Mayor. One of these members shall be
17designated by the Mayor to serve as chairperson. All of the
18members appointed by the Mayor shall be residents of the City.
19    Each Casino Board appointee shall be subject to a
20preliminary background investigation completed by the Gaming
21Board within 30 days after the appointee's submission of his or
22her application to the Gaming Board. If the Gaming Board
23determines that there is a substantial likelihood that it will
24not find the appointee to be suitable to serve on the Casino
25Board (applying the same standards for suitability to the

 

 

SB0007- 5 -LRB100 06307 AMC 16345 b

1appointee as the Gaming Board would apply to an owners licensee
2key person under the Gaming Board's adopted rules), then the
3Gaming Board shall provide a written notice of such
4determination to the appointee and the Corporation Counsel of
5the City. The Mayor may then appoint a new candidate. If no
6such notice is delivered with respect to a particular
7appointee, then commencing on the 31st day following the date
8of the appointee's submission of his or her application to the
9Gaming Board, the appointee shall be deemed an acting member of
10the Casino Board and shall participate as a Casino Board
11member.
12    Each appointee shall be subject to a full background
13investigation and final approval by the Gaming Board prior to
14the opening of the casino. The Gaming Board shall complete its
15full background investigation of the Casino Board appointee
16within 3 months after the date of the appointee's submission of
17his or her application to the Gaming Board. If the Gaming Board
18does not complete its background investigation within the
193-month period, then the Gaming Board shall give a written
20explanation to the appointee, as well as the Mayor, the
21Governor, the President of the Senate, and the Speaker of the
22House of Representatives, as to why it has not reached a final
23determination and set forth a reasonable time when such
24determination shall be made.
25    (b) Casino Board members shall receive $300 for each day
26the Authority meets and shall be entitled to reimbursement of

 

 

SB0007- 6 -LRB100 06307 AMC 16345 b

1reasonable expenses incurred in the performance of their
2official duties. A Casino Board member who serves in the office
3of secretary-treasurer may also receive compensation for
4services provided as that officer.
 
5    Section 1-20. Terms of appointments; resignation and
6removal.
7    (a) The Mayor shall appoint 2 members of the Casino Board
8for an initial term expiring July 1 of the year following final
9approval by the Gaming Board, 2 members for an initial term
10expiring July 1 three years following final approval by the
11Gaming Board, and one member for an initial term expiring July
121 five years following final approval by the Gaming Board.
13    (b) All successors shall be appointed by the Mayor to hold
14office for a term of 5 years from the first day of July of the
15year in which they are appointed, except in the case of an
16appointment to fill a vacancy. Each member, including the
17chairperson, shall hold office until the expiration of his or
18her term and until his or her successor is appointed and
19qualified. Nothing shall preclude a member from serving
20consecutive terms. Any member may resign from office, to take
21effect when a successor has been appointed and qualified. A
22vacancy in office shall occur in the case of a member's death
23or indictment, conviction, or plea of guilty to a felony. A
24vacancy shall be filled for the unexpired term by the Mayor
25subject to the approval of the Gaming Board as provided in this

 

 

SB0007- 7 -LRB100 06307 AMC 16345 b

1Section.
2    (c) Members of the Casino Board shall serve at the pleasure
3of the Mayor. The Mayor or the Gaming Board may remove any
4member of the Casino Board upon a finding of incompetence,
5neglect of duty, or misfeasance or malfeasance in office or for
6a violation of this Act. The Gaming Board may remove any member
7of the Casino Board for any violation of the Illinois Gambling
8Act or the rules and regulations of the Gaming Board.
9    (d) No member of the Casino Board shall engage in any
10political activity. For the purpose of this Section, "political
11activity" means any activity in support of or in connection
12with any campaign for federal, State, or local elective office
13or any political organization, but does not include activities
14(i) relating to the support or opposition of any executive,
15legislative, or administrative action, as those terms are
16defined in Section 2 of the Lobbyist Registration Act, (ii)
17relating to collective bargaining, or (iii) that are otherwise
18in furtherance of the person's official duties or governmental
19and public service functions.
 
20    Section 1-25. Organization of Casino Board; meetings.
21After appointment by the Mayor, the Casino Board shall organize
22for the transaction of business, provided that the Casino Board
23shall not take any formal action until after the Gaming Board
24has completed its preliminary background investigation of at
25least a quorum of the Casino Board as provided in subsection

 

 

SB0007- 8 -LRB100 06307 AMC 16345 b

1(a) of Section 1-15. The Casino Board shall prescribe the time
2and place for meetings, the manner in which special meetings
3may be called, and the notice that must be given to members.
4All actions and meetings of the Casino Board shall be subject
5to the provisions of the Open Meetings Act. Three members of
6the Casino Board shall constitute a quorum. All substantive
7action of the Casino Board shall be by resolution with an
8affirmative vote of a majority of the members.
 
9    Section 1-30. Executive director; officers.
10    (a) The Casino Board shall appoint an executive director,
11who shall be the chief executive officer of the Authority.
12    The executive director shall be subject to a preliminary
13background investigation to be completed by the Gaming Board
14within 30 days after the executive director's submission of his
15or her application to the Gaming Board. If the Gaming Board
16determines that there is a substantial likelihood that it will
17not find the executive director to be suitable to serve in that
18position (applying the same standards for suitability as the
19Gaming Board would apply to an owners licensee key person under
20the Gaming Board's adopted rules), then the Gaming Board shall
21provide a written notice of such determination to the appointee
22and the Corporation Counsel of the City. The Casino Board may
23then appoint a new executive director. If no such notice is
24delivered, then commencing on the 31st day following the date
25of the executive director's submission of his or her

 

 

SB0007- 9 -LRB100 06307 AMC 16345 b

1application to the Gaming Board, the executive director shall
2commence all duties as the acting executive director of the
3Authority.
4    The executive director shall be subject to a full
5background investigation and final approval by the Gaming Board
6prior to the opening of the casino. The Gaming Board shall
7complete its full background investigation of the executive
8director within 3 months after the date of the executive
9director's submission of his or her application to the Gaming
10Board. If the Gaming Board does not complete its background
11investigation within the 3-month period, then the Gaming Board
12shall give a written explanation to the appointee, as well as
13the Mayor, the Governor, the President of the Senate, and the
14Speaker of the House of Representatives, as to why it has not
15reached a final determination and set forth a reasonable time
16when such determination shall be made.
17    (b) The Casino Board shall fix the compensation of the
18executive director. Subject to the general control of the
19Casino Board, the executive director shall be responsible for
20the management of the business, properties, and employees of
21the Authority. The executive director shall direct the
22enforcement of all resolutions, rules, and regulations of the
23Casino Board, and shall perform such other duties as may be
24prescribed from time to time by the Casino Board. All employees
25and independent contractors, consultants, engineers,
26architects, accountants, attorneys, financial experts,

 

 

SB0007- 10 -LRB100 06307 AMC 16345 b

1construction experts and personnel, superintendents, managers,
2and other personnel appointed or employed pursuant to this Act
3shall report to the executive director. In addition to any
4other duties set forth in this Act, the executive director
5shall do or shall delegate to an employee or agent of the
6Authority to do all of the following:
7        (1) Direct and supervise the administrative affairs
8    and activities of the Authority in accordance with its
9    rules, regulations, and policies.
10        (2) Attend meetings of the Casino Board.
11        (3) Keep minutes of all proceedings of the Casino
12    Board.
13        (4) Approve all accounts for salaries, per diem
14    payments, and allowable expenses of the Casino Board and
15    its employees and consultants.
16        (5) Report and make recommendations to the Casino Board
17    concerning the terms and conditions of any casino
18    management contract.
19        (6) Perform any other duty that the Casino Board
20    requires for carrying out the provisions of this Act.
21        (7) Devote his or her full time to the duties of the
22    office and not hold any other office or employment.
23    (c) The Casino Board may select a secretary-treasurer and
24other officers to hold office at the pleasure of the Casino
25Board. The Casino Board shall fix the duties of such officers.
 

 

 

SB0007- 11 -LRB100 06307 AMC 16345 b

1    Section 1-31. General rights and powers of the Authority.
2    (a) In addition to the duties and powers set forth in this
3Act, the Authority shall have the following rights and powers:
4        (1) Adopt and alter an official seal.
5        (2) Establish and change its fiscal year.
6        (3) Sue and be sued, plead and be impleaded, all in its
7    own name, and agree to binding arbitration of any dispute
8    to which it is a party.
9        (4) Adopt, amend, and repeal bylaws, rules, and
10    regulations consistent with the furtherance of the powers
11    and duties provided for.
12        (5) Maintain its principal office within the City and
13    such other offices as the Casino Board may designate.
14        (6) Select locations in the City for a temporary and a
15    permanent casino.
16        (7) Subject to the bidding procedures of Section 1-115
17    of this Act, retain or employ, either as regular employees
18    or independent contractors, consultants, engineers,
19    architects, accountants, attorneys, financial experts,
20    construction experts and personnel, superintendents,
21    managers and other professional personnel, and such other
22    personnel as may be necessary in the judgment of the Casino
23    Board, and fix their compensation; however, employees of
24    the Authority shall be hired pursuant to and in accordance
25    with the rules and policies the Authority may adopt.
26        (8) Pursuant to Section 1-115 of this Act, own,

 

 

SB0007- 12 -LRB100 06307 AMC 16345 b

1    acquire, construct, equip, lease, operate, manage, and
2    maintain grounds, buildings, and facilities to carry out
3    its corporate purposes and duties.
4        (9) Pursuant to Section 1-115, and subject to the
5    oversight, review, and approval of the Gaming Board, enter
6    into, revoke, and modify contracts in accordance with the
7    rules of the Gaming Board as consistently applied to all
8    owners licensees under the Illinois Gambling Act, provided
9    that the Authority may enter into contracts for the design,
10    construction, and outfitting of a temporary casino prior to
11    the Gaming Board's final approval of the Authority's
12    executive director and the members of the Casino Board and
13    prior to the Gaming Board's issuance of the Authority's
14    owners license. Provided further that the entities
15    selected by the Authority for the design, construction, and
16    outfitting of the temporary casino shall be subject to a
17    preliminary background investigation to be completed by
18    the Gaming Board within 30 days after the Gaming Board is
19    provided the identities of the entities. If the Gaming
20    Board determines that there is a substantial likelihood
21    that the entities are not suitable or acceptable to perform
22    their respective functions, then the Gaming Board shall
23    immediately provide notice of that determination to the
24    Authority. If no such notice is delivered, then, commencing
25    on the 31st day following the date on which the information
26    identifying such entities is provided to the Gaming Board,

 

 

SB0007- 13 -LRB100 06307 AMC 16345 b

1    such entities shall be permitted to commence the services
2    contemplated for the design, construction, and outfitting
3    of the temporary casino. In no event, however, shall the
4    Authority open a casino until after the Gaming Board has
5    finally approved the Authority's executive director and
6    the members of the Casino Board and the Gaming Board has
7    issued the Authority's owners license and the casino
8    operator's casino operator license.
9        (10) Enter into a casino management contract subject to
10    the provisions of Section 1-45 of this Act.
11        (11) Negotiate and enter into intergovernmental
12    agreements with the State and its agencies, the City, and
13    other units of local government, in furtherance of the
14    powers and duties of the Casino Board.
15        (12) Receive and disburse funds for its own corporate
16    purposes or as otherwise specified in this Act.
17        (13) Borrow money from any source, public or private,
18    for any corporate purpose, including, without limitation,
19    working capital for its operations, reserve funds, or
20    payment of interest, and to mortgage, pledge, or otherwise
21    encumber the property or funds of the Authority and to
22    contract with or engage the services of any person in
23    connection with any financing, including financial
24    institutions, issuers of letters of credit, or insurers and
25    enter into reimbursement agreements with this person or
26    entity which may be secured as if money were borrowed from

 

 

SB0007- 14 -LRB100 06307 AMC 16345 b

1    the person or entity.
2        (14) Issue bonds as provided for under this Act.
3        (15) Receive and accept from any source, private or
4    public, contributions, gifts, or grants of money or
5    property to the Authority.
6        (16) Provide for the insurance of any property,
7    operations, officers, members, agents, or employees of the
8    Authority against any risk or hazard, to self-insure or
9    participate in joint self-insurance pools or entities to
10    insure against such risk or hazard, and to provide for the
11    indemnification of its officers, members, employees,
12    contractors, or agents against any and all risks.
13        (17) Exercise all the corporate powers granted
14    Illinois corporations under the Business Corporation Act
15    of 1983, except to the extent that powers are inconsistent
16    with those of a body politic and municipal corporation.
17        (18) Do all things necessary or convenient to carry out
18    the powers granted by this Act.
19    (b) The Casino Board shall comply with all applicable legal
20requirements imposed on other owners licensees to conduct all
21background investigations required under the Illinois Gambling
22Act and the rules of the Gaming Board. This requirement shall
23also extend to senior legal, financial, and administrative
24staff of the Authority.
 
25    Section 1-32. Ethical conduct.

 

 

SB0007- 15 -LRB100 06307 AMC 16345 b

1    (a) Casino Board members and employees of the Authority
2must carry out their duties and responsibilities in such a
3manner as to promote and preserve public trust and confidence
4in the integrity and conduct of gaming.
5    (b) Except as may be required in the conduct of official
6duties, Casino Board members and employees of the Authority
7shall not engage in gambling on any riverboat, in any casino,
8or in an electronic gaming facility licensed by the Illinois
9Gaming Board or engage in legalized gambling in any
10establishment identified by Gaming Board action that, in the
11judgment of the Gaming Board, could represent a potential for a
12conflict of interest.
13    (c) A Casino Board member or employee of the Authority
14shall not use or attempt to use his or her official position to
15secure or attempt to secure any privilege, advantage, favor, or
16influence for himself or herself or others.
17    (d) Casino Board members and employees of the Authority
18shall not hold or pursue employment, office, position,
19business, or occupation that may conflict with his or her
20official duties. Employees may engage in other gainful
21employment so long as that employment does not interfere or
22conflict with their duties. Such employment must be disclosed
23to the executive director and approved by the Casino Board.
24    (e) Casino Board members, employees of the Authority, and
25elected officials and employees of the City may not engage in
26employment, communications, or any activity identified by the

 

 

SB0007- 16 -LRB100 06307 AMC 16345 b

1Casino Board or Gaming Board that, in the judgment of either
2entity, could represent the potential for or the appearance of
3a conflict of interest.
4    (f) Casino Board members, employees of the Authority, and
5elected officials and employees of the City may not have a
6financial interest, directly or indirectly, in his or her own
7name or in the name of any other person, partnership,
8association, trust, corporation, or other entity in any
9contract or subcontract for the performance of any work for the
10Authority. This prohibition shall extend to the holding or
11acquisition of an interest in any entity identified by the
12Casino Board or the Gaming Board that, in the judgment of
13either entity, could represent the potential for or the
14appearance of a financial interest. The holding or acquisition
15of an interest in such entities through an indirect means, such
16as through a mutual fund, shall not be prohibited, except that
17the Gaming Board may identify specific investments or funds
18that, in its judgment, are so influenced by gaming holdings as
19to represent the potential for or the appearance of a conflict
20of interest.
21    (g) Casino Board members, employees of the Authority, and
22elected officials and employees of the City may not accept any
23gift, gratuity, service, compensation, travel, lodging, or
24thing of value, with the exception of unsolicited items of an
25incidental nature, from any person, corporation, or entity
26doing business with the Authority.

 

 

SB0007- 17 -LRB100 06307 AMC 16345 b

1    (h) No Casino Board member, employee of the Authority, or
2elected official or employee of the City may, during employment
3or within a period of 2 years immediately after termination of
4employment, knowingly accept employment or receive
5compensation or fees for services from a person or entity, or
6its parent or affiliate, that has engaged in business with the
7Authority that resulted in contracts with an aggregate value of
8at least $25,000 or if that Casino Board member or employee has
9made a decision that directly applied to the person or entity,
10or its parent or affiliate.
11    (i) A spouse, child, or parent of a Casino Board member,
12employee of the Authority, or elected official or employee of
13the City may not have a financial interest, directly or
14indirectly, in his or her own name or in the name of any other
15person, partnership, association, trust, corporation, or other
16entity in any contract or subcontract for the performance of
17any work for the Authority. This prohibition shall extend to
18the holding or acquisition of an interest in any entity
19identified by the Casino Board or Gaming Board that, in the
20judgment of either entity, could represent the potential for or
21the appearance of a conflict of interest. The holding or
22acquisition of an interest in such entities through an indirect
23means, such as through a mutual fund, shall not be prohibited,
24except that the Gaming Board may identify specific investments
25or funds that, in its judgment, are so influenced by gaming
26holdings as to represent the potential for or the appearance of

 

 

SB0007- 18 -LRB100 06307 AMC 16345 b

1a conflict of interest.
2    (j) A spouse, child, or parent of a Casino Board member,
3employee of the Authority, or elected official or employee of
4the City may not accept any gift, gratuity, service,
5compensation, travel, lodging, or thing of value, with the
6exception of unsolicited items of an incidental nature, from
7any person, corporation, or entity doing business with the
8Authority.
9    (k) A spouse, child, or parent of a Casino Board member,
10employee of the Authority, or elected official or employee of
11the City may not, while the person is a Board member or
12employee of the spouse or within a period of 2 years
13immediately after termination of employment, knowingly accept
14employment or receive compensation or fees for services from a
15person or entity, or its parent or affiliate, that has engaged
16in business with the Authority that resulted in contracts with
17an aggregate value of at least $25,000 or if that Casino Board
18member, employee, or elected official or employee of the City
19has made a decision that directly applied to the person or
20entity, or its parent or affiliate.
21    (l) No Casino Board member, employee of the Authority, or
22elected official or employee of the City may attempt, in any
23way, to influence any person or entity doing business with the
24Authority or any officer, agent, or employee thereof to hire or
25contract with any person or entity for any compensated work.
26    (m) No Casino Board member, employee of the Authority, or

 

 

SB0007- 19 -LRB100 06307 AMC 16345 b

1elected official or employee of the City shall use or attempt
2to use his or her official position to secure, or attempt to
3secure, any privilege, advantage, favor, or influence for
4himself or herself or others. No Casino Board member, employee
5of the Authority, or elected official or employee of the City
6shall, within one year immediately preceding appointment by the
7Mayor or employment, have been employed or received
8compensation or fees for services from a person or entity, or
9its parent or affiliate, that has engaged in business with the
10Casino Board, a licensee under this Act, or a licensee under
11the Illinois Gambling Act.
12    (n) Any communication between an elected official of the
13City and any applicant for or party to a casino management
14contract with the Authority, or an officer, director, or
15employee thereof, concerning any matter relating in any way to
16gaming or the Authority shall be disclosed to the Casino Board
17and the Gaming Board. Such disclosure shall be in writing by
18the official within 30 days after the communication and shall
19be filed with the Casino Board and the Gaming Board. Disclosure
20must consist of the date of the communication, the identity and
21job title of the person with whom the communication was made, a
22brief summary of the communication, the action requested or
23recommended, all responses made, the identity and job title of
24the person making the response, and any other pertinent
25information. In addition, if the communication is written or
26digital, then the entire communication shall be disclosed.

 

 

SB0007- 20 -LRB100 06307 AMC 16345 b

1    Public disclosure of the written summary provided to the
2Casino Board and the Gaming Board shall be subject to the
3exemptions provided under Section 7 of the Freedom of
4Information Act.
5    This subsection (n) shall not apply to communications
6regarding traffic, law enforcement, security, environmental
7issues, City services, transportation, or other routine
8matters concerning the ordinary operations of the casino.
9    (o) For purposes of this Section:
10    "Ordinary operations" means operations relating to the
11casino facility other than the conduct of gambling activities.
12    "Routine matters" includes the application for, issuance,
13renewal, and other processes associated with City permits and
14licenses.
15    "Employee of the City" means only those employees of the
16City who provide services to the Authority or otherwise
17influence the decisions of the Authority or the Casino Board.
18    (p) Any Casino Board member or employee of the Authority
19who violates any provision of this Section is guilty of a Class
204 felony.
 
21    Section 1-45. Casino management contracts.
22    (a) In accordance with all applicable procurement laws and
23rules, the Casino Board shall develop and administer a
24competitive sealed bidding process for the selection of a
25potential casino operator licensee to develop or operate a

 

 

SB0007- 21 -LRB100 06307 AMC 16345 b

1casino within the City. The Casino Board shall issue one or
2more requests for proposals. The Casino Board may establish
3minimum financial and investment requirements to determine the
4eligibility of persons to respond to the Casino Board's
5requests for proposals, and may establish and consider such
6other criteria as it deems appropriate. The Casino Board may
7impose a reasonable fee upon persons who respond to requests
8for proposals, in order to reimburse the Casino Board for its
9costs in preparing and issuing the requests and reviewing the
10proposals. At least 30 days prior to the commencement of the
11competitive bidding process, the Gaming Board shall be given an
12opportunity to review the competitive bidding process
13established by the Casino Board. During the competitive bidding
14process, the Casino Board shall keep the Gaming Board apprised
15of the process and the responses received in connection with
16the Casino Board's requests for proposals.
17    (b) Within 5 business days after the time limit for
18submitting bids and proposals has passed, the Casino Board
19shall make all bids and proposals public, provided, however,
20the Casino Board shall not be required to disclose any
21information which would be exempt from disclosure under Section
227 of the Freedom of Information Act. Thereafter, the Casino
23Board shall evaluate the responses to its requests for
24proposals and the ability of all persons or entities responding
25to its requests for proposals to meet the requirements of this
26Act and any relevant provisions of the Illinois Gambling Act

 

 

SB0007- 22 -LRB100 06307 AMC 16345 b

1and to undertake and perform the obligations set forth in its
2requests for proposals.
3    (c) After reviewing proposals and selecting a successful
4bidder, the Casino Board shall enter into a casino management
5contract with the successful bidder authorizing the operation
6of a casino. The casino operator shall be subject to a
7background investigation and approval by the Gaming Board. The
8Gaming Board shall complete its background investigation and
9approval of the casino operator within 6 months after the date
10that the proposed casino operator submits its application to
11the Gaming Board. If the Gaming Board does not complete its
12background investigation and approval within the 6-month
13period, then the Gaming Board shall give a written explanation
14to the proposed casino operator and the chief legal officer of
15the Authority as to why it has not reached a final
16determination and when it reasonably expects to make a final
17determination. Validity of the casino management contract is
18contingent upon the issuance of a casino operator license to
19the successful bidder. If the Gaming Board grants a casino
20operator license, the Casino Board shall transmit a copy of the
21executed casino management contract to the Gaming Board.
22    (d) After (1) the Authority has been issued an owners
23license, (2) the Gaming Board has issued a casino operator
24license, and (3) the Gaming Board has approved the members of
25the Casino Board, the Authority may conduct gaming operations
26at a temporary facility, subject to the adopted rules of the

 

 

SB0007- 23 -LRB100 06307 AMC 16345 b

1Gaming Board, for no longer than 24 months after gaming
2operations begin. The Gaming Board may, after holding a public
3hearing, grant an extension so long as a permanent facility is
4not operational and the Authority is working in good faith to
5complete the permanent facility. The Gaming Board may grant
6additional extensions following further public hearings. Each
7extension may be for a period of no longer than 6 months.
8    (e) Fifty percent of any initial consideration received by
9the Authority that was paid as an inducement pursuant to a bid
10for a casino management contract or an executed casino
11management contract must be transmitted to the State and
12deposited into the Gaming Facilities Fee Revenue Fund. The
13initial consideration shall not include (1) any amounts paid to
14the Authority as reimbursement for its costs in preparing or
15issuing the requests for proposals and reviewing the proposals
16or (2) any amounts loaned to the Authority or paid by an entity
17on behalf of the Authority for the design, construction,
18outfitting, or equipping of the casino, pre-opening expenses,
19bank roll or similar expenses required to open and operate the
20casino, or any license or per position fees imposed pursuant to
21the Illinois Gambling Act or any other financial obligation of
22the Authority.
 
23    Section 1-47. Freedom of Information Act. The Authority
24shall be a public body as defined in the Freedom of Information
25Act and shall be subject to the provisions of the Freedom of

 

 

SB0007- 24 -LRB100 06307 AMC 16345 b

1Information Act.
 
2    Section 1-50. Transfer of funds. The revenues received by
3the Authority (other than amounts required to be paid pursuant
4to the Illinois Gambling Act and amounts required to pay the
5operating expenses of the Authority, to pay amounts due the
6casino operator licensee pursuant to a casino management
7contract, to repay any borrowing of the Authority made pursuant
8to Section 1-31, to pay debt service on any bonds issued under
9Section 1-75, and to pay any expenses in connection with the
10issuance of such bonds pursuant to Section 1-75 or derivative
11products pursuant to Section 1-85) shall be transferred to the
12City by the Authority. Moneys transferred to the City pursuant
13to this Section shall be expended or obligated by the City for
14pension payments in accordance with Public Act 99-506.
 
15    Section 1-60. Auditor General.
16    (a) Prior to the issuance of bonds under this Act, the
17Authority shall submit to the Auditor General a certification
18that:
19        (1) it is legally authorized to issue bonds;
20        (2) scheduled annual payments of principal and
21    interest on the bonds to be issued meet the requirements of
22    Section 1-75 of this Act;
23        (3) no bond shall mature later than 30 years; and
24        (4) after payment of costs of issuance and necessary

 

 

SB0007- 25 -LRB100 06307 AMC 16345 b

1    deposits to funds and accounts established with respect to
2    debt service on the bonds, the net bond proceeds (exclusive
3    of any proceeds to be used to refund outstanding bonds)
4    will be used only for the purposes set forth in this Act.
5    The Authority also shall submit to the Auditor General its
6projections on revenues to be generated and pledged to
7repayment of the bonds as scheduled and such other information
8as the Auditor General may reasonably request.
9    The Auditor General shall examine the certifications and
10information submitted and submit a report to the Authority and
11the Gaming Board indicating whether the required
12certifications, projections, and other information have been
13submitted by the Authority and whether the assumptions
14underlying the projections are not unreasonable in the
15aggregate. The Auditor General shall submit the report no later
16than 60 days after receiving the information required to be
17submitted by the Authority.
18    The Auditor General shall submit a bill to the Authority
19for costs associated with the examinations and report required
20under this Section. The Authority shall reimburse in a timely
21manner.
22    (b) The Authority shall enter into an intergovernmental
23agreement with the Auditor General authorizing the Auditor
24General to, every 2 years, (i) review the financial audit of
25the Authority performed by the Authority's certified public
26accountants, (ii) perform a management audit of the Authority,

 

 

SB0007- 26 -LRB100 06307 AMC 16345 b

1and (iii) perform a management audit of the casino operator
2licensee. The Auditor General shall provide the Authority and
3the General Assembly with the audits and shall post on his or
4her Internet website such portions of the audit or other
5financial information as generally would be made publicly
6available for other owners licensees under the Illinois
7Gambling Act. The Auditor General shall submit a bill to the
8Authority for costs associated with the review and the audit
9required under this Section, which costs shall not exceed
10$100,000, and the Authority shall reimburse the Auditor General
11for such costs in a timely manner.
 
12    Section 1-62. Advisory committee. An Advisory Committee is
13established to monitor, review, and report on (1) the
14Authority's utilization of minority-owned business enterprises
15and female-owned business enterprises, (2) employment of
16females, and (3) employment of minorities with regard to the
17development and construction of the casino as authorized under
18Section 7 of the Illinois Gambling Act. The Authority shall
19work with the Advisory Committee in accumulating necessary
20information for the Committee to submit reports, as necessary,
21to the General Assembly and to the City.
22    The Committee shall consist of 9 members as provided in
23this Section. Five members shall be selected by the Governor
24and 4 members shall be selected by the Mayor. The Governor and
25Mayor shall each appoint at least one current member of the

 

 

SB0007- 27 -LRB100 06307 AMC 16345 b

1General Assembly. The Advisory Committee shall meet
2periodically and shall report the information to the Mayor of
3the City and to the General Assembly by December 31st of every
4year.
5    The Advisory Committee shall be dissolved on the date that
6casino gambling operations are first conducted at a permanent
7facility under the license authorized under Section 7 of the
8Illinois Gambling Act. For the purposes of this Section, the
9terms "female" and "minority person" have the meanings provided
10in Section 2 of the Business Enterprise for Minorities,
11Females, and Persons with Disabilities Act.
 
12    Section 1-65. Acquisition of property; eminent domain
13proceedings. For the lawful purposes of this Act, the City may
14acquire, by eminent domain or by condemnation proceedings in
15the manner provided by the Eminent Domain Act, real or personal
16property or interests in real or personal property located in
17the City, and the City may convey to the Authority property so
18acquired. The acquisition of property under this Section is
19declared to be for a public use.
 
20    Section 1-70. Local regulation. In addition to this Act,
21the Illinois Gambling Act, and all of the rules of the Gaming
22Board, the casino facilities and operations therein shall be
23subject to all ordinances and regulations of the City. The
24construction, development, and operation of the casino shall

 

 

SB0007- 28 -LRB100 06307 AMC 16345 b

1comply with all ordinances, regulations, rules, and controls of
2the City, including, but not limited to, those relating to
3zoning and planned development, building, fire prevention, and
4land use. However, the regulation of gaming operations is
5subject to the exclusive jurisdiction of the Gaming Board. The
6Gaming Board shall be responsible for the investigation for and
7issuance of all licenses required by this Act and the Illinois
8Gambling Act.
 
9    Section 1-75. Borrowing.
10    (a) The Authority may borrow money and issue bonds as
11provided in this Section. Bonds of the Authority may be issued
12to provide funds for land acquisition, site assembly and
13preparation, and the design and construction of the casino, as
14defined in the Illinois Gambling Act, all ancillary and related
15facilities comprising the casino complex, and all on-site and
16off-site infrastructure improvements required in connection
17with the development of the casino; to refund (at the time or
18in advance of any maturity or redemption) or redeem any bonds
19of the Authority; to provide or increase a debt service reserve
20fund or other reserves with respect to any or all of its bonds;
21or to pay the legal, financial, administrative, bond insurance,
22credit enhancement, and other legal expenses of the
23authorization, issuance, or delivery of bonds. In this Act, the
24term "bonds" also includes notes of any kind, interim
25certificates, refunding bonds, or any other evidence of

 

 

SB0007- 29 -LRB100 06307 AMC 16345 b

1obligation for borrowed money issued under this Section. Bonds
2may be issued in one or more series and may be payable and
3secured either on a parity with or separately from other bonds.
4    (b) The bonds of the Authority shall be payable from one or
5more of the following sources: (i) the property or revenues of
6the Authority; (ii) revenues derived from the casino; (iii)
7revenues derived from any casino operator licensee; (iv) fees,
8bid proceeds, charges, lease payments, payments required
9pursuant to any casino management contract or other revenues
10payable to the Authority, or any receipts of the Authority; (v)
11payments by financial institutions, insurance companies, or
12others pursuant to letters or lines of credit, policies of
13insurance, or purchase agreements; (vi) investment earnings
14from funds or accounts maintained pursuant to a bond resolution
15or trust indenture; (vii) proceeds of refunding bonds; (viii)
16any other revenues derived from or payments by the City; and
17(ix) any payments by any casino operator licensee or others
18pursuant to any guaranty agreement.
19    (c) Bonds shall be authorized by a resolution of the
20Authority and may be secured by a trust indenture by and
21between the Authority and a corporate trustee or trustees,
22which may be any trust company or bank having the powers of a
23trust company within or without the State. Bonds shall meet the
24following requirements:
25        (1) Bonds may bear interest payable at any time or
26    times and at any rate or rates, notwithstanding any other

 

 

SB0007- 30 -LRB100 06307 AMC 16345 b

1    provision of law to the contrary, and may be subject to
2    such other terms and conditions as may be provided by the
3    resolution or indenture authorizing the issuance of such
4    bonds.
5        (2) Bonds issued pursuant to this Section may be
6    payable on such dates and times as may be provided for by
7    the resolution or indenture authorizing the issuance of
8    such bonds; provided, however, that such bonds shall mature
9    no later than 30 years from the date of issuance.
10        (3) Bonds issued pursuant to this Section may be sold
11    pursuant to notice of sale and public bid or by negotiated
12    sale.
13        (4) Bonds shall be payable at a time or times, in the
14    denominations and form, including book entry form, either
15    coupon, registered, or both, and carry the registration and
16    privileges as to exchange, transfer or conversion, and
17    replacement of mutilated, lost, or destroyed bonds as the
18    resolution or trust indenture may provide.
19        (5) Bonds shall be payable in lawful money of the
20    United States at a designated place.
21        (6) Bonds shall be subject to the terms of purchase,
22    payment, redemption, refunding, or refinancing that the
23    resolution or trust indenture provides.
24        (7) Bonds shall be executed by the manual or facsimile
25    signatures of the officers of the Authority designated by
26    the Board, which signatures shall be valid at delivery even

 

 

SB0007- 31 -LRB100 06307 AMC 16345 b

1    for one who has ceased to hold office.
2        (8) Bonds shall be sold at public or private sale in
3    the manner and upon the terms determined by the Authority.
4        (9) Bonds shall be issued in accordance with the
5    provisions of the Local Government Debt Reform Act.
6    (d) The Authority shall adopt a procurement program with
7respect to contracts relating to underwriters, bond counsel,
8financial advisors, and accountants. The program shall include
9goals for the payment of not less than 30% of the total dollar
10value of the fees from these contracts to minority-owned
11businesses and female-owned businesses as defined in the
12Business Enterprise for Minorities, Females, and Persons with
13Disabilities Act. The Authority shall conduct outreach to
14minority-owned businesses and female-owned businesses.
15Outreach shall include, but is not limited to, advertisements
16in periodicals and newspapers, mailings, and other appropriate
17media. The Authority shall submit to the General Assembly a
18comprehensive report that shall include, at a minimum, the
19details of the procurement plan, outreach efforts, and the
20results of the efforts to achieve goals for the payment of
21fees.
22    (e) Subject to the Illinois Gambling Act and rules of the
23Gaming Board regarding pledging of interests in holders of
24owners licenses, any resolution or trust indenture may contain
25provisions that may be a part of the contract with the holders
26of the bonds as to the following:

 

 

SB0007- 32 -LRB100 06307 AMC 16345 b

1        (1) Pledging, assigning, or directing the use,
2    investment, or disposition of revenues of the Authority or
3    proceeds or benefits of any contract, including without
4    limitation any rights in any casino management contract.
5        (2) The setting aside of loan funding deposits, debt
6    service reserves, replacement or operating reserves, cost
7    of issuance accounts and sinking funds, and the regulation,
8    investment, and disposition thereof.
9        (3) Limitations on the purposes to which or the
10    investments in which the proceeds of sale of any issue of
11    bonds or the Authority's revenues and receipts may be
12    applied or made.
13        (4) Limitations on the issue of additional bonds, the
14    terms upon which additional bonds may be issued and
15    secured, the terms upon which additional bonds may rank on
16    a parity with, or be subordinate or superior to, other
17    bonds.
18        (5) The refunding, advance refunding, or refinancing
19    of outstanding bonds.
20        (6) The procedure, if any, by which the terms of any
21    contract with bondholders may be altered or amended and the
22    amount of bonds and holders of which must consent thereto
23    and the manner in which consent shall be given.
24        (7) Defining the acts or omissions that shall
25    constitute a default in the duties of the Authority to
26    holders of bonds and providing the rights or remedies of

 

 

SB0007- 33 -LRB100 06307 AMC 16345 b

1    such holders in the event of a default, which may include
2    provisions restricting individual rights of action by
3    bondholders.
4        (8) Providing for guarantees, pledges of property,
5    letters of credit, or other security, or insurance for the
6    benefit of bondholders.
7    (f) No member of the Casino Board, nor any person executing
8the bonds, shall be liable personally on the bonds or subject
9to any personal liability by reason of the issuance of the
10bonds.
11    (g) The Authority may issue and secure bonds in accordance
12with the provisions of the Local Government Credit Enhancement
13Act.
14    (h) A pledge by the Authority of revenues and receipts as
15security for an issue of bonds or for the performance of its
16obligations under any casino management contract shall be valid
17and binding from the time when the pledge is made. The revenues
18and receipts pledged shall immediately be subject to the lien
19of the pledge without any physical delivery or further act, and
20the lien of any pledge shall be valid and binding against any
21person having any claim of any kind in tort, contract, or
22otherwise against the Authority, irrespective of whether the
23person has notice. No resolution, trust indenture, management
24agreement or financing statement, continuation statement, or
25other instrument adopted or entered into by the Authority need
26be filed or recorded in any public record other than the

 

 

SB0007- 34 -LRB100 06307 AMC 16345 b

1records of the Authority in order to perfect the lien against
2third persons, regardless of any contrary provision of law.
3    (i) Bonds that are being paid or retired by issuance, sale,
4or delivery of bonds, and bonds for which sufficient funds have
5been deposited with the paying agent or trustee to provide for
6payment of principal and interest thereon, and any redemption
7premium, as provided in the authorizing resolution, shall not
8be considered outstanding for the purposes of this subsection.
9    (j) The bonds of the Authority shall not be indebtedness of
10the State. The bonds of the Authority are not general
11obligations of the State and are not secured by a pledge of the
12full faith and credit of the State and the holders of bonds of
13the Authority may not require the application of State revenues
14or funds to the payment of bonds of the Authority. The
15foregoing non-recourse language must be printed in bold-face
16type on the face of the bonds and in the preliminary and final
17official statements on the bonds.
18    (k) The State of Illinois pledges and agrees with the
19owners of the bonds that it will not limit or alter the rights
20and powers vested in the Authority by this Act so as to impair
21the terms of any contract made by the Authority with the owners
22or in any way impair the rights and remedies of the owners
23until the bonds, together with interest on them, and all costs
24and expenses in connection with any action or proceedings by or
25on behalf of the owners, are fully met and discharged. The
26Authority is authorized to include this pledge and agreement in

 

 

SB0007- 35 -LRB100 06307 AMC 16345 b

1any contract with the owners of bonds issued under this
2Section.
3    (l) No person holding an elective office in the City, in
4Cook County, or in this State, holding a seat in the General
5Assembly, or serving as a board member, trustee, officer, or
6employee of the Authority, including the spouse of that person,
7may receive a legal, banking, consulting, or other fee related
8to the issuance of bonds. This prohibition shall also apply to
9a company or firm that employs a person holding an elective
10office in the City, in Cook County, or in this State, holding a
11seat in the General Assembly, or serving as a board member,
12trustee, officer, or employee of the Authority, including the
13spouse of that person, if the person or his or her spouse has
14greater than 7.5% ownership of the company or firm.
 
15    Section 1-85. Derivative products. With respect to all or
16part of any issue of its bonds, the Authority may enter into
17agreements or contracts with any necessary or appropriate
18person, which will have the benefit of providing to the
19Authority an interest rate basis, cash flow basis, or other
20basis different from that provided in the bonds for the payment
21of interest. Such agreements or contracts may include, without
22limitation, agreements or contracts commonly known as
23"interest rate swap agreements", "forward payment conversion
24agreements", "futures", "options", "puts", or "calls" and
25agreements or contracts providing for payments based on levels

 

 

SB0007- 36 -LRB100 06307 AMC 16345 b

1of or changes in interest rates, agreements or contracts to
2exchange cash flows or a series of payments, or to hedge
3payment, rate spread, or similar exposure. Any such agreement
4or contract shall be solely an obligation or indebtedness of
5the Authority and shall not be an obligation or indebtedness of
6the State, nor shall any party thereto have any recourse
7against the State in connection with the agreement or contract.
 
8    Section 1-90. Legality for investment. The State of
9Illinois, all governmental entities, all public officers,
10banks, bankers, trust companies, savings banks and
11institutions, building and loan associations, savings and loan
12associations, investment companies, and other persons carrying
13on a banking business, insurance companies, insurance
14associations, and other persons carrying on an insurance
15business, and all executors, administrators, guardians,
16trustees, and other fiduciaries may legally invest any sinking
17funds, moneys, or other funds belonging to them or within their
18control in any bonds issued under this Act. However, nothing in
19this Section shall be construed as relieving any person or
20entity from any duty of exercising reasonable care in selecting
21securities for purchase or investment.
 
22    Section 1-105. Budgets and reporting.
23    (a) The Casino Board shall annually adopt a budget for each
24fiscal year. The budget may be modified from time to time in

 

 

SB0007- 37 -LRB100 06307 AMC 16345 b

1the same manner and upon the same vote as it may be adopted.
2The budget shall include the Authority's available funds and
3estimated revenues and shall provide for payment of its
4obligations and estimated expenditures for the fiscal year,
5including, without limitation, expenditures for
6administration, operation, maintenance and repairs, debt
7service, and deposits into reserve and other funds and capital
8projects.
9    (b) The Casino Board shall annually cause the finances of
10the Authority to be audited by a firm of certified public
11accountants selected by the Casino Board in accordance with the
12rules of the Gaming Board and post on the Authority's Internet
13website such financial information as is required to be posted
14by all other owners licensees under the Illinois Gambling Act.
15    (c) The Casino Board shall, for each fiscal year, prepare
16an annual report setting forth information concerning its
17activities in the fiscal year and the status of the development
18of the casino. The annual report shall include financial
19information of the Authority consistent with that which is
20required for all other owners licensees under the Illinois
21Gambling Act, the budget for the succeeding fiscal year, and
22the current capital plan as of the date of the report. Copies
23of the annual report shall be made available to persons who
24request them and shall be submitted not later than 120 days
25after the end of the Authority's fiscal year or, if the audit
26of the Authority's financial statements is not completed within

 

 

SB0007- 38 -LRB100 06307 AMC 16345 b

1120 days after the end of the Authority's fiscal year, as soon
2as practical after completion of the audit, to the Governor,
3the Mayor, the General Assembly, and the Commission on
4Government Forecasting and Accountability.
 
5    Section 1-110. Deposit and withdrawal of funds.
6    (a) All funds deposited by the Authority in any bank or
7savings and loan association shall be placed in the name of the
8Authority and shall be withdrawn or paid out only by check or
9draft upon the bank or savings and loan association, signed by
102 officers or employees designated by the Casino Board.
11Notwithstanding any other provision of this Section, the Casino
12Board may designate any of its members or any officer or
13employee of the Authority to authorize the wire transfer of
14funds deposited by the secretary-treasurer of funds in a bank
15or savings and loan association for the payment of payroll and
16employee benefits-related expenses.
17    No bank or savings and loan association shall receive
18public funds as permitted by this Section unless it has
19complied with the requirements established pursuant to Section
206 of the Public Funds Investment Act.
21    (b) If any officer or employee whose signature appears upon
22any check or draft issued pursuant to this Act ceases (after
23attaching his signature) to hold his or her office before the
24delivery of such a check or draft to the payee, his or her
25signature shall nevertheless be valid and sufficient for all

 

 

SB0007- 39 -LRB100 06307 AMC 16345 b

1purposes with the same effect as if he or she had remained in
2office until delivery thereof.
 
3    Section 1-112. Contracts with the Authority or casino
4operator licensee; disclosure requirements.
5    (a) A bidder, respondent, offeror, or contractor for
6contracts with the Authority or casino operator licensee shall
7disclose the identity of all officers and directors and every
8owner, beneficiary, or person with beneficial interest of more
9than 1% or shareholder entitled to receive more than 1% of the
10total distributable income of any corporation having any
11interest in the contract or in the bidder, respondent, offeror,
12or contractor. The disclosure shall be in writing and attested
13to by an owner, trustee, corporate official, or agent. If stock
14in a corporation is publicly traded and there is no readily
15known individual having greater than a 1% interest, then a
16statement to that effect attested to by an officer or agent of
17the corporation shall fulfill the disclosure statement
18requirement of this Section. A bidder, respondent, offeror, or
19contractor shall notify the Authority of any changes in
20officers, directors, ownership, or individuals having a
21beneficial interest of more than 1%. Notwithstanding the
22provisions of this subsection (a), the Gaming Board may adopt
23rules in connection with contractors for contracts with the
24Authority or the casino operator licensee.
25    (b) A bidder, respondent, offeror, or contractor for

 

 

SB0007- 40 -LRB100 06307 AMC 16345 b

1contracts with an annual value of $25,000 or more or for a
2period to exceed one year shall disclose all political
3contributions of the bidder, respondent, offeror, or
4contractor and any affiliated person or entity. Disclosure
5shall include at least the names and addresses of the
6contributors and the dollar amounts of any contributions to any
7political committee made within the previous 2 years. The
8disclosure must be submitted to the Gaming Board with a copy of
9the contract. All such disclosures shall be posted on the
10websites of the Authority and the Gaming Board.
11    (c) As used in this Section:
12    "Contribution" means contribution as defined in Section
139-1.4 of the Election Code.
14    "Affiliated person" means (i) any person with any ownership
15interest or distributive share of the bidding, responding, or
16contracting entity in excess of 1%, (ii) executive employees of
17the bidding, responding, or contracting entity, and (iii) the
18spouse, minor children, and parents of any such persons.
19    "Affiliated entity" means (i) any parent or subsidiary of
20the bidding or contracting entity, (ii) any member of the same
21unitary business group, or (iii) any political committee for
22which the bidding, responding, or contracting entity is the
23sponsoring entity.
24    (d) The Gaming Board may direct the Authority or a casino
25operator licensee to void a contract if a violation of this
26Section occurs. The Authority may direct a casino operator

 

 

SB0007- 41 -LRB100 06307 AMC 16345 b

1licensee to void a contract if a violation of this Section
2occurs.
3    (e) All contracts pertaining to the actual operation of the
4casino and related gaming activities shall be entered into by
5the casino operator licensee and not the Authority and shall be
6subject to the regulation, oversight, and approval of the
7Gaming Board, applying the same regulation, oversight, and
8approval requirements as would be applied to any other owners
9licensee under the Illinois Gambling Act.
 
10    Section 1-115. Purchasing.
11    (a) The Casino Board shall designate an officer of the
12Authority to serve as the Chief Procurement Officer for the
13Authority. The Chief Procurement Officer shall have all powers
14and duties set forth in Section 15 of Division 10 of Article 8
15of the Illinois Municipal Code. Except as otherwise provided in
16this Section, the Chief Procurement Officer of the Authority
17shall conduct procurements on behalf of the Authority subject
18to Title 2, Chapter 92 of the Municipal Code of Chicago, which
19by its terms incorporates Division 10 of Article 8 of the
20Illinois Municipal Code.
21    (b) All contracts for amounts greater than $25,000 must be
22approved by the Casino Board and executed by the chairperson of
23the Casino Board and executive director of the Authority.
24Contracts for amounts of $25,000 or less may be approved and
25executed by the Chief Procurement Officer for the Authority and

 

 

SB0007- 42 -LRB100 06307 AMC 16345 b

1executive director of the Authority, with approval by the chief
2legal counsel for the Authority as to form and legality.
3    (c) All construction contracts and contracts for supplies,
4materials, equipment, and services for amounts greater than
5$25,000 shall be let by a competitive selection process to the
6lowest responsible proposer, after advertising for proposals,
7except for the following:
8        (1) when repair parts, accessories, equipment, or
9    services are required for equipment or services previously
10    furnished or contracted for;
11        (2) when services such as water, light, heat, power,
12    telephone (other than long-distance service), or telegraph
13    are required;
14        (3) casino management contracts, which shall be
15    awarded as set forth in Section 1-45 of this Act;
16        (4) contracts where there is only one economically
17    feasible source;
18        (5) when a purchase is needed on an immediate,
19    emergency basis because there exists a threat to public
20    health or public safety, or when immediate expenditure is
21    necessary for repairs to Authority property in order to
22    protect against further loss of or damage to Authority
23    property, to prevent or minimize serious disruption in
24    Authority services or to ensure the integrity of Authority
25    records;
26        (6) contracts for professional services other than for

 

 

SB0007- 43 -LRB100 06307 AMC 16345 b

1    management of the casino, except such contracts described
2    in subsection (d) of this Section; and
3        (7) contracts for the use, purchase, delivery,
4    movement, or installation of (i) data processing
5    equipment, software, and services and (ii)
6    telecommunications equipment, software, and services.
7    (d) Contracts for professional services for a term of more
8than one year or contracts that may require payment in excess
9of $25,000 in one year shall be let by a competitive bidding
10process to the most highly qualified firm that agrees to
11compensation and other terms of engagement that are both
12reasonable and acceptable to the Casino Board.
13    (e) All contracts involving less than $25,000 shall be let
14by competitive selection process whenever possible, and in any
15event in a manner calculated to ensure the best interests of
16the public.
17    (f) In determining the responsibility of any proposer, the
18Authority may take into account the proposer's (or an
19individual having a beneficial interest, directly or
20indirectly, of more than 1% in such proposing entity) past
21record of dealings with the Authority, the proposer's
22experience, adequacy of equipment, and ability to complete
23performance within the time set, and other factors besides
24financial responsibility. No such contract shall be awarded to
25any proposer other than the lowest proposer (in case of
26purchase or expenditure) unless authorized or approved by a

 

 

SB0007- 44 -LRB100 06307 AMC 16345 b

1vote of at least 3 members of the Casino Board and such action
2is accompanied by a written statement setting forth the reasons
3for not awarding the contract to the highest or lowest
4proposer, as the case may be. The statement shall be kept on
5file in the principal office of the Authority and open to
6public inspection.
7    (g) The Authority shall have the right to reject all
8proposals and to re-advertise for proposals. If after any such
9re-advertisement, no responsible and satisfactory proposals,
10within the terms of the re-advertisement, is received, the
11Authority may award such contract without competitive
12selection. The contract must not be less advantageous to the
13Authority than any valid proposal received pursuant to
14advertisement.
15    (h) Advertisements for proposals and re-proposals shall be
16published at least once in a daily newspaper of general
17circulation published in the City at least 10 calendar days
18before the time for receiving proposals and in an online
19bulletin published on the Authority's website. Such
20advertisements shall state the time and place for receiving and
21opening of proposals and, by reference to plans and
22specifications on file at the time of the first publication or
23in the advertisement itself, shall describe the character of
24the proposed contract in sufficient detail to fully advise
25prospective proposers of their obligations and to ensure free
26and open competitive selection.

 

 

SB0007- 45 -LRB100 06307 AMC 16345 b

1    (i) All proposals in response to advertisements shall be
2sealed and shall be publicly opened by the Authority. All
3proposers shall be entitled to be present in person or by
4representatives. Cash or a certified or satisfactory cashier's
5check, as a deposit of good faith, in a reasonable amount to be
6fixed by the Authority before advertising for proposals, shall
7be required with the proposal. A bond for faithful performance
8of the contract with surety or sureties satisfactory to the
9Authority and adequate insurance may be required in reasonable
10amounts to be fixed by the Authority before advertising for
11proposals.
12    (j) The contract shall be awarded as promptly as possible
13after the opening of proposals. The proposal of the successful
14proposer, as well as the bids of the unsuccessful proposers,
15shall be placed on file and be open to public inspection
16subject to the exemptions from disclosure provided under
17Section 7 of the Freedom of Information Act. All proposals
18shall be void if any disclosure of the terms of any proposals
19in response to an advertisement is made or permitted to be made
20by the Authority before the time fixed for opening proposals.
21    (k) Notice of each and every contract that is offered,
22including renegotiated contracts and change orders, shall be
23published in an online bulletin. The online bulletin must
24include at least the date first offered, the date submission of
25offers is due, the location that offers are to be submitted to,
26a brief purchase description, the method of source selection,

 

 

SB0007- 46 -LRB100 06307 AMC 16345 b

1information of how to obtain a comprehensive purchase
2description and any disclosure and contract forms, and
3encouragement to prospective vendors to hire qualified
4veterans, as defined by Section 45-67 of the Illinois
5Procurement Code, and Illinois residents discharged from any
6Illinois adult correctional center subject to Gaming Board
7licensing and eligibility rules. Notice of each and every
8contract that is let or awarded, including renegotiated
9contracts and change orders, shall be published in the online
10bulletin and must include at least all of the information
11specified in this subsection (k), as well as the name of the
12successful responsible proposer or offeror, the contract
13price, and the number of unsuccessful responsive proposers and
14any other disclosure specified in this Section. This notice
15must be posted in the online electronic bulletin prior to
16execution of the contract.
 
17    Section 1-130. Affirmative action and equal opportunity
18obligations of Authority.
19    (a) The Authority is subject to the requirements of Article
20IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
21inclusive) of the Chicago Municipal Code, as now or hereafter
22amended, renumbered, or succeeded, concerning a Minority-Owned
23and Women-Owned Business Enterprise Procurement Program for
24construction contracts, and Section 2-92-420 et seq. of the
25Chicago Municipal Code, as now or hereafter amended,

 

 

SB0007- 47 -LRB100 06307 AMC 16345 b

1renumbered, or succeeded, concerning a Minority-Owned and
2Women-Owned Business Enterprise Procurement Program.
3    (b) The Authority is authorized to enter into agreements
4with contractors' associations, labor unions, and the
5contractors working on the development of the casino to
6establish an apprenticeship preparedness training program to
7provide for an increase in the number of minority and female
8journeymen and apprentices in the building trades and to enter
9into agreements with community college districts or other
10public or private institutions to provide readiness training.
11The Authority is further authorized to enter into contracts
12with public and private educational institutions and persons in
13the gaming, entertainment, hospitality, and tourism industries
14to provide training for employment in those industries.
 
15    Section 1-135. Transfer of interest. Neither the Authority
16nor the City may sell, lease, rent, transfer, exchange, or
17otherwise convey any interest that they have in the casino
18without prior approval of the General Assembly.
 
19    Section 1-140. Home rule. The regulation and licensing of
20casinos and casino gaming, casino gaming facilities, and casino
21operator licensees under this Act are exclusive powers and
22functions of the State. A home rule unit may not regulate or
23license casinos, casino gaming, casino gaming facilities, or
24casino operator licensees under this Act, except as provided

 

 

SB0007- 48 -LRB100 06307 AMC 16345 b

1under this Act. This Section is a denial and limitation of home
2rule powers and functions under subsection (h) of Section 6 of
3Article VII of the Illinois Constitution.
 
4
ARTICLE 90.

 
5    Section 90-1. Findings. The General Assembly makes all of
6the following findings:
7        (1) That the cumulative reduction to pre-K through 12
8    education funding since 2009 is approximately
9    $861,000,000.
10        (2) That general state aid to Illinois common schools
11    has been underfunded as a result of budget cuts, resulting
12    in pro-rated payments to school districts that are less
13    than the foundational level of $6,119 per pupil, which
14    represents the minimum each pupil needs to be educated.
15        (3) That a significant infusion of new revenue is
16    necessary in order to fully fund the foundation level and
17    to maintain and support education in Illinois.
18        (4) That the decline of the Illinois horse racing and
19    breeding program, a $2.5 billion industry, would be
20    reversed if this amendatory Act of the 100th General
21    Assembly would be enacted.
22        (5) That the Illinois horse racing industry is on the
23    verge of extinction due to fierce competition from fully
24    developed horse racing and gaming operations in other

 

 

SB0007- 49 -LRB100 06307 AMC 16345 b

1    states.
2        (6) That allowing the State's horse racing venues,
3    currently licensed gaming destinations, to maximize their
4    capacities with gaming machines, would generate up to $120
5    million to $200 million for the State in the form of extra
6    licensing fees, plus an additional $100 million to $300
7    million in recurring annual tax revenue for the State to
8    help ensure that school, road, and other building projects
9    promised under the capital plan occur on schedule.
10        (7) That Illinois agriculture and other businesses
11    that support and supply the horse racing industry, already
12    a sector that employs over 37,000 Illinoisans, also stand
13    to substantially benefit and would be much more likely to
14    create additional jobs should Illinois horse racing once
15    again become competitive with other states.
16        (8) That by keeping these projects on track, the State
17    can be sure that significant job and economic growth will
18    in fact result from the previously enacted legislation.
19        (9) That gaming machines at Illinois horse racing
20    tracks would create an estimated 1,200 to 1,500 permanent
21    jobs, and an estimated capital investment of up to $200
22    million to $400 million at these race tracks would prompt
23    additional trade organization jobs necessary to construct
24    new facilities or remodel race tracks to operate electronic
25    gaming.
 

 

 

SB0007- 50 -LRB100 06307 AMC 16345 b

1    Section 90-3. The State Officials and Employees Ethics Act
2is amended by changing Sections 5-45 and 20-10 as follows:
 
3    (5 ILCS 430/5-45)
4    Sec. 5-45. Procurement; revolving door prohibition.
5    (a) No former officer, member, or State employee, or spouse
6or immediate family member living with such person, shall,
7within a period of one year immediately after termination of
8State employment, knowingly accept employment or receive
9compensation or fees for services from a person or entity if
10the officer, member, or State employee, during the year
11immediately preceding termination of State employment,
12participated personally and substantially in the award of State
13contracts, or the issuance of State contract change orders,
14with a cumulative value of $25,000 or more to the person or
15entity, or its parent or subsidiary.
16    (b) No former officer of the executive branch or State
17employee of the executive branch with regulatory or licensing
18authority, or spouse or immediate family member living with
19such person, shall, within a period of one year immediately
20after termination of State employment, knowingly accept
21employment or receive compensation or fees for services from a
22person or entity if the officer or State employee, during the
23year immediately preceding termination of State employment,
24participated personally and substantially in making a
25regulatory or licensing decision that directly applied to the

 

 

SB0007- 51 -LRB100 06307 AMC 16345 b

1person or entity, or its parent or subsidiary.
2    (c) Within 6 months after the effective date of this
3amendatory Act of the 96th General Assembly, each executive
4branch constitutional officer and legislative leader, the
5Auditor General, and the Joint Committee on Legislative Support
6Services shall adopt a policy delineating which State positions
7under his or her jurisdiction and control, by the nature of
8their duties, may have the authority to participate personally
9and substantially in the award of State contracts or in
10regulatory or licensing decisions. The Governor shall adopt
11such a policy for all State employees of the executive branch
12not under the jurisdiction and control of any other executive
13branch constitutional officer.
14    The policies required under subsection (c) of this Section
15shall be filed with the appropriate ethics commission
16established under this Act or, for the Auditor General, with
17the Office of the Auditor General.
18    (d) Each Inspector General shall have the authority to
19determine that additional State positions under his or her
20jurisdiction, not otherwise subject to the policies required by
21subsection (c) of this Section, are nonetheless subject to the
22notification requirement of subsection (f) below due to their
23involvement in the award of State contracts or in regulatory or
24licensing decisions.
25    (e) The Joint Committee on Legislative Support Services,
26the Auditor General, and each of the executive branch

 

 

SB0007- 52 -LRB100 06307 AMC 16345 b

1constitutional officers and legislative leaders subject to
2subsection (c) of this Section shall provide written
3notification to all employees in positions subject to the
4policies required by subsection (c) or a determination made
5under subsection (d): (1) upon hiring, promotion, or transfer
6into the relevant position; and (2) at the time the employee's
7duties are changed in such a way as to qualify that employee.
8An employee receiving notification must certify in writing that
9the person was advised of the prohibition and the requirement
10to notify the appropriate Inspector General in subsection (f).
11    (f) Any State employee in a position subject to the
12policies required by subsection (c) or to a determination under
13subsection (d), but who does not fall within the prohibition of
14subsection (h) below, who is offered non-State employment
15during State employment or within a period of one year
16immediately after termination of State employment shall, prior
17to accepting such non-State employment, notify the appropriate
18Inspector General. Within 10 calendar days after receiving
19notification from an employee in a position subject to the
20policies required by subsection (c), such Inspector General
21shall make a determination as to whether the State employee is
22restricted from accepting such employment by subsection (a) or
23(b). In making a determination, in addition to any other
24relevant information, an Inspector General shall assess the
25effect of the prospective employment or relationship upon
26decisions referred to in subsections (a) and (b), based on the

 

 

SB0007- 53 -LRB100 06307 AMC 16345 b

1totality of the participation by the former officer, member, or
2State employee in those decisions. A determination by an
3Inspector General must be in writing, signed and dated by the
4Inspector General, and delivered to the subject of the
5determination within 10 calendar days or the person is deemed
6eligible for the employment opportunity. For purposes of this
7subsection, "appropriate Inspector General" means (i) for
8members and employees of the legislative branch, the
9Legislative Inspector General; (ii) for the Auditor General and
10employees of the Office of the Auditor General, the Inspector
11General provided for in Section 30-5 of this Act; and (iii) for
12executive branch officers and employees, the Inspector General
13having jurisdiction over the officer or employee. Notice of any
14determination of an Inspector General and of any such appeal
15shall be given to the ultimate jurisdictional authority, the
16Attorney General, and the Executive Ethics Commission.
17    (g) An Inspector General's determination regarding
18restrictions under subsection (a) or (b) may be appealed to the
19appropriate Ethics Commission by the person subject to the
20decision or the Attorney General no later than the 10th
21calendar day after the date of the determination.
22    On appeal, the Ethics Commission or Auditor General shall
23seek, accept, and consider written public comments regarding a
24determination. In deciding whether to uphold an Inspector
25General's determination, the appropriate Ethics Commission or
26Auditor General shall assess, in addition to any other relevant

 

 

SB0007- 54 -LRB100 06307 AMC 16345 b

1information, the effect of the prospective employment or
2relationship upon the decisions referred to in subsections (a)
3and (b), based on the totality of the participation by the
4former officer, member, or State employee in those decisions.
5The Ethics Commission shall decide whether to uphold an
6Inspector General's determination within 10 calendar days or
7the person is deemed eligible for the employment opportunity.
8    (h) The following officers, members, or State employees
9shall not, within a period of one year immediately after
10termination of office or State employment, knowingly accept
11employment or receive compensation or fees for services from a
12person or entity if the person or entity or its parent or
13subsidiary, during the year immediately preceding termination
14of State employment, was a party to a State contract or
15contracts with a cumulative value of $25,000 or more involving
16the officer, member, or State employee's State agency, or was
17the subject of a regulatory or licensing decision involving the
18officer, member, or State employee's State agency, regardless
19of whether he or she participated personally and substantially
20in the award of the State contract or contracts or the making
21of the regulatory or licensing decision in question:
22        (1) members or officers;
23        (2) members of a commission or board created by the
24    Illinois Constitution;
25        (3) persons whose appointment to office is subject to
26    the advice and consent of the Senate;

 

 

SB0007- 55 -LRB100 06307 AMC 16345 b

1        (4) the head of a department, commission, board,
2    division, bureau, authority, or other administrative unit
3    within the government of this State;
4        (5) chief procurement officers, State purchasing
5    officers, and their designees whose duties are directly
6    related to State procurement; and
7        (6) chiefs of staff, deputy chiefs of staff, associate
8    chiefs of staff, assistant chiefs of staff, and deputy
9    governors; .
10        (7) employees of the Illinois Racing Board; and
11        (8) employees of the Illinois Gaming Board.
12    (i) For the purposes of this Section, with respect to
13officers or employees of a regional transit board, as defined
14in this Act, the phrase "person or entity" does not include:
15(i) the United States government, (ii) the State, (iii)
16municipalities, as defined under Article VII, Section 1 of the
17Illinois Constitution, (iv) units of local government, as
18defined under Article VII, Section 1 of the Illinois
19Constitution, or (v) school districts.
20(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
 
21    (5 ILCS 430/20-10)
22    Sec. 20-10. Offices of Executive Inspectors General.
23    (a) Six Five independent Offices of the Executive Inspector
24General are created, one each for the Governor, the Attorney
25General, the Secretary of State, the Comptroller, and the

 

 

SB0007- 56 -LRB100 06307 AMC 16345 b

1Treasurer and one for gaming activities. Each Office shall be
2under the direction and supervision of an Executive Inspector
3General and shall be a fully independent office with separate
4appropriations.
5    (b) The Governor, Attorney General, Secretary of State,
6Comptroller, and Treasurer shall each appoint an Executive
7Inspector General, and the Governor shall appoint an Executive
8Inspector General for gaming activities. Each appointment must
9be made without regard to political affiliation and solely on
10the basis of integrity and demonstrated ability. Appointments
11shall be made by and with the advice and consent of the Senate
12by three-fifths of the elected members concurring by record
13vote. Any nomination not acted upon by the Senate within 60
14session days of the receipt thereof shall be deemed to have
15received the advice and consent of the Senate. If, during a
16recess of the Senate, there is a vacancy in an office of
17Executive Inspector General, the appointing authority shall
18make a temporary appointment until the next meeting of the
19Senate when the appointing authority shall make a nomination to
20fill that office. No person rejected for an office of Executive
21Inspector General shall, except by the Senate's request, be
22nominated again for that office at the same session of the
23Senate or be appointed to that office during a recess of that
24Senate.
25    Nothing in this Article precludes the appointment by the
26Governor, Attorney General, Secretary of State, Comptroller,

 

 

SB0007- 57 -LRB100 06307 AMC 16345 b

1or Treasurer of any other inspector general required or
2permitted by law. The Governor, Attorney General, Secretary of
3State, Comptroller, and Treasurer each may appoint an existing
4inspector general as the Executive Inspector General required
5by this Article, provided that such an inspector general is not
6prohibited by law, rule, jurisdiction, qualification, or
7interest from serving as the Executive Inspector General
8required by this Article. An appointing authority may not
9appoint a relative as an Executive Inspector General.
10    Each Executive Inspector General shall have the following
11qualifications:
12        (1) has not been convicted of any felony under the laws
13    of this State, another State, or the United States;
14        (2) has earned a baccalaureate degree from an
15    institution of higher education; and
16        (3) has 5 or more years of cumulative service (A) with
17    a federal, State, or local law enforcement agency, at least
18    2 years of which have been in a progressive investigatory
19    capacity; (B) as a federal, State, or local prosecutor; (C)
20    as a senior manager or executive of a federal, State, or
21    local agency; (D) as a member, an officer, or a State or
22    federal judge; or (E) representing any combination of (A)
23    through (D).
24    The term of each initial Executive Inspector General shall
25commence upon qualification and shall run through June 30,
262008. The initial appointments shall be made within 60 days

 

 

SB0007- 58 -LRB100 06307 AMC 16345 b

1after the effective date of this Act.
2    After the initial term, each Executive Inspector General
3shall serve for 5-year terms commencing on July 1 of the year
4of appointment and running through June 30 of the fifth
5following year. An Executive Inspector General may be
6reappointed to one or more subsequent terms.
7    A vacancy occurring other than at the end of a term shall
8be filled by the appointing authority only for the balance of
9the term of the Executive Inspector General whose office is
10vacant.
11    Terms shall run regardless of whether the position is
12filled.
13    (c) The Executive Inspector General appointed by the
14Attorney General shall have jurisdiction over the Attorney
15General and all officers and employees of, and vendors and
16others doing business with, State agencies within the
17jurisdiction of the Attorney General. The Executive Inspector
18General appointed by the Secretary of State shall have
19jurisdiction over the Secretary of State and all officers and
20employees of, and vendors and others doing business with, State
21agencies within the jurisdiction of the Secretary of State. The
22Executive Inspector General appointed by the Comptroller shall
23have jurisdiction over the Comptroller and all officers and
24employees of, and vendors and others doing business with, State
25agencies within the jurisdiction of the Comptroller. The
26Executive Inspector General appointed by the Treasurer shall

 

 

SB0007- 59 -LRB100 06307 AMC 16345 b

1have jurisdiction over the Treasurer and all officers and
2employees of, and vendors and others doing business with, State
3agencies within the jurisdiction of the Treasurer. The
4Executive Inspector General appointed by the Governor shall
5have jurisdiction over (i) the Governor, (ii) the Lieutenant
6Governor, (iii) all officers and employees of, and vendors and
7others doing business with, executive branch State agencies
8under the jurisdiction of the Executive Ethics Commission and
9not within the jurisdiction of the Attorney General, the
10Secretary of State, the Comptroller, or the Treasurer, or the
11Executive Inspector General for gaming activities, and (iv) all
12board members and employees of the Regional Transit Boards and
13all vendors and others doing business with the Regional Transit
14Boards. The Executive Inspector General for gaming activities
15appointed by the Governor has jurisdiction over the Illinois
16Gaming Board, all officers and employees of the Illinois Gaming
17Board, and all activities of the Illinois Gaming Board.
18    The jurisdiction of each Executive Inspector General is to
19investigate allegations of fraud, waste, abuse, mismanagement,
20misconduct, nonfeasance, misfeasance, malfeasance, or
21violations of this Act or violations of other related laws and
22rules.
23    (d) The compensation for each Executive Inspector General
24shall be determined by the Executive Ethics Commission and
25shall be made from appropriations made to the Comptroller for
26this purpose. Subject to Section 20-45 of this Act, each

 

 

SB0007- 60 -LRB100 06307 AMC 16345 b

1Executive Inspector General has full authority to organize his
2or her Office of the Executive Inspector General, including the
3employment and determination of the compensation of staff, such
4as deputies, assistants, and other employees, as
5appropriations permit. A separate appropriation shall be made
6for each Office of Executive Inspector General.
7    (e) No Executive Inspector General or employee of the
8Office of the Executive Inspector General may, during his or
9her term of appointment or employment:
10        (1) become a candidate for any elective office;
11        (2) hold any other elected or appointed public office
12    except for appointments on governmental advisory boards or
13    study commissions or as otherwise expressly authorized by
14    law;
15        (3) be actively involved in the affairs of any
16    political party or political organization; or
17        (4) advocate for the appointment of another person to
18    an appointed or elected office or position or actively
19    participate in any campaign for any elective office.
20    In this subsection an appointed public office means a
21position authorized by law that is filled by an appointing
22authority as provided by law and does not include employment by
23hiring in the ordinary course of business.
24    (e-1) No Executive Inspector General or employee of the
25Office of the Executive Inspector General may, for one year
26after the termination of his or her appointment or employment:

 

 

SB0007- 61 -LRB100 06307 AMC 16345 b

1        (1) become a candidate for any elective office;
2        (2) hold any elected public office; or
3        (3) hold any appointed State, county, or local judicial
4    office.
5    (e-2) The requirements of item (3) of subsection (e-1) may
6be waived by the Executive Ethics Commission.
7    (f) An Executive Inspector General may be removed only for
8cause and may be removed only by the appointing constitutional
9officer. At the time of the removal, the appointing
10constitutional officer must report to the Executive Ethics
11Commission the justification for the removal.
12(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
 
13    Section 90-5. The Alcoholism and Other Drug Abuse and
14Dependency Act is amended by changing Section 5-20 as follows:
 
15    (20 ILCS 301/5-20)
16    Sec. 5-20. Compulsive gambling program.
17    (a) Subject to appropriation, the Department shall
18establish a program for public education, research, and
19training regarding problem and compulsive gambling and the
20treatment and prevention of problem and compulsive gambling.
21Subject to specific appropriation for these stated purposes,
22the program must include all of the following:
23        (1) Establishment and maintenance of a toll-free "800"
24    telephone number to provide crisis counseling and referral

 

 

SB0007- 62 -LRB100 06307 AMC 16345 b

1    services to families experiencing difficulty as a result of
2    problem or compulsive gambling.
3        (2) Promotion of public awareness regarding the
4    recognition and prevention of problem and compulsive
5    gambling.
6        (3) Facilitation, through in-service training and
7    other means, of the availability of effective assistance
8    programs for problem and compulsive gamblers.
9        (4) Conducting studies to identify adults and
10    juveniles in this State who are, or who are at risk of
11    becoming, problem or compulsive gamblers.
12    (b) Subject to appropriation, the Department shall either
13establish and maintain the program or contract with a private
14or public entity for the establishment and maintenance of the
15program. Subject to appropriation, either the Department or the
16private or public entity shall implement the toll-free
17telephone number, promote public awareness, and conduct
18in-service training concerning problem and compulsive
19gambling.
20    (c) Subject to appropriation, the Department shall produce
21and supply the signs specified in Section 10.7 of the Illinois
22Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
231975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
24of the Charitable Games Act, and Section 13.1 of the Illinois
25Riverboat Gambling Act.
26(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 

 

 

SB0007- 63 -LRB100 06307 AMC 16345 b

1    Section 90-6. The Department of Commerce and Economic
2Opportunity Law of the Civil Administrative Code of Illinois is
3amended by adding Sections 605-530 and 605-535 as follows:
 
4    (20 ILCS 605/605-530 new)
5    Sec. 605-530. The Depressed Communities Economic
6Development Board.
7    (a) The Depressed Communities Economic Development Board
8is created as an advisory board within the Department of
9Commerce and Economic Opportunity. The Board shall consist of
10the following members:
11        (1) 3 members appointed by the Governor, one of whom
12    shall be appointed to serve an initial term of one year and
13    2 of whom shall be appointed to serve an initial term of 2
14    years;
15        (2) 2 members appointed by the Speaker of the House of
16    Representatives, one of whom shall be appointed to serve an
17    initial term of one year and one of whom shall be appointed
18    to serve an initial term of 2 years;
19        (3) 2 members appointed by the President of the Senate,
20    one of whom shall be appointed to serve an initial term of
21    one year and one of whom shall be appointed to serve an
22    initial term of 2 years;
23        (4) 2 members appointed by the Minority Leader of the
24    House of Representatives, one of whom shall be appointed to

 

 

SB0007- 64 -LRB100 06307 AMC 16345 b

1    serve an initial term of one year and one of whom shall be
2    appointed to serve an initial term of 2 years; and
3        (5) 2 members appointed by the Minority Leader of the
4    Senate, one of whom shall be appointed to serve an initial
5    term of one year and one of whom shall be appointed to
6    serve an initial term of 2 years.
7    The members of the Board shall elect a member to serve as
8chair of the Board. The members of the Board shall reflect the
9composition of the Illinois population with regard to ethnic
10and racial composition.
11    After the initial terms, each member shall be appointed to
12serve a term of 2 years and until his or her successor has been
13appointed and assumes office. If a vacancy occurs in the Board
14membership, then the vacancy shall be filled in the same manner
15as the initial appointment. No member of the Board shall, at
16the time of his or her appointment or within 2 years before the
17appointment, hold elected office or be appointed to a State
18board, commission, or agency. All Board members are subject to
19the State Officials and Employees Ethics Act.
20    (b) Board members shall serve without compensation, but may
21be reimbursed for their reasonable travel expenses from funds
22available for that purpose. The Department of Commerce and
23Economic Opportunity shall provide staff and administrative
24support services to the Board.
25    (c) The Board must make recommendations, which must be
26approved by a majority of the Board, to the Department of

 

 

SB0007- 65 -LRB100 06307 AMC 16345 b

1Commerce and Economic Opportunity concerning the award of
2grants from amounts appropriated to the Department from the
3Depressed Communities Economic Development Fund, a special
4fund created in the State treasury. The Department must make
5grants to public or private entities submitting proposals to
6the Board to revitalize an Illinois depressed community. Grants
7may be used by these entities only for those purposes
8conditioned with the grant. For the purposes of this subsection
9(c), plans for revitalizing an Illinois depressed community
10include plans intended to curb high levels of poverty,
11unemployment, job and population loss, and general distress. An
12Illinois depressed community is an area where the poverty rate,
13as determined by using the most recent data released by the
14United States Census Bureau, is at least 3% greater than the
15State poverty rate as determined by using the most recent data
16released by the United States Census Bureau.
 
17    (20 ILCS 605/605-535 new)
18    Sec. 605-535. The Commission on the Future of Economic
19Development of the Latino Community.
20    (a) There is hereby created the Commission on the Future of
21Economic Development of the Latino Community within the
22Department. The purpose of the Commission shall be to maintain
23and develop the economy of Latinos and to provide opportunities
24for this community, which will enhance and expand the quality
25of their lives.

 

 

SB0007- 66 -LRB100 06307 AMC 16345 b

1    The Commission shall concentrate its major efforts on
2strategic planning, policy research and analysis, advocacy,
3evaluation, and promoting coordination and collaboration.
4    During each regular legislative session, the Commission
5must consult with appropriate legislative committees about the
6State's economic development needs and opportunities in the
7Latino community.
8    By October 1st of each even-numbered year, the Commission
9must submit to the Governor and the General Assembly a biennial
10comprehensive statewide economic development strategy for the
11Latino community with a report on progress from the previous
12comprehensive strategy.
13    The comprehensive statewide economic development strategy
14may include, but is not limited to:
15        (1) an assessment of the Latino community's economic
16    vitality;
17        (2) recommended goals, objectives, and priorities for
18    the next biennium and the future;
19        (3) a common set of outcomes and benchmarks for the
20    economic development system as a whole for the Latino
21    community;
22        (4) recommendations for removing barriers for Latinos
23    in employment;
24        (5) an inventory of existing relevant programs
25    compiled by the Commission from materials submitted by
26    agencies;

 

 

SB0007- 67 -LRB100 06307 AMC 16345 b

1        (6) recommendations for expanding, discontinuing, or
2    redirecting existing programs or adding new programs to
3    better serve the Latino community; and
4        (7) recommendations of best practices and public and
5    private sector roles in implementing the comprehensive
6    statewide economic development strategy.
7    In developing the biennial statewide economic development
8strategy, goals, objectives, priorities, and recommendations,
9the Commission shall consult, collaborate, and coordinate with
10relevant State agencies, private sector business, nonprofit
11organizations involved in economic development, trade
12associations, associate development organizations, and
13relevant local organizations in order to avoid duplication of
14effort.
15    State agencies shall cooperate with the Commission and
16provide information as the Commission may reasonably request.
17    The Commission shall review and make budget
18recommendations to the Governor's Office of Management and
19Budget and the General Assembly in areas relating to the
20economic development in the State's Latino community.
21    The Commission shall evaluate its own performance on a
22regular basis.
23    The Commission may accept gifts, grants, donations,
24sponsorships, or contributions from any federal, State, or
25local governmental agency or program, or any private source,
26and expend the same for any purpose consistent with this

 

 

SB0007- 68 -LRB100 06307 AMC 16345 b

1Section.
2    (b) The Commission shall consist of 12 voting members,
3appointed by the Governor, 4 of whom shall be appointed to
4serve an initial term of one year, 4 of whom shall be appointed
5to serve an initial term of 2 years, and 4 of whom shall be
6appointed to serve an initial term of 3 years. After the
7initial term, each member shall be appointed to a term of 3
8years. Members of the Commission shall serve at the pleasure of
9the Governor for not more than 2 consecutive 3-year terms. In
10appointing members, the Governor shall appoint individuals
11from the following private industry sectors:
12        (1) production agriculture;
13        (2) at least 2 individuals from manufacturing, one of
14    whom shall represent a company with no more than 75
15    employees;
16        (3) transportation, construction, and logistics;
17        (4) travel and tourism;
18        (5) financial services and insurance;
19        (6) information technology and communications; and
20        (7) biotechnology.
21    The members of the Commission shall choose a member to
22serve as chair of the Commission. The members of the Commission
23shall be representative, to the extent possible, of the various
24geographic areas of the State. The Director shall serve as an
25ad hoc nonvoting member of the Commission. Vacancies shall be
26filled in the same manner as the original appointments. The

 

 

SB0007- 69 -LRB100 06307 AMC 16345 b

1members of the Commission shall serve without compensation.
2    (c) The Commission shall meet at least 4 times per year,
3with at least one meeting each calendar quarter, at the call of
4the director or 4 voting members of the Commission. The staff
5and support for the Commission shall be provided by the
6Department.
7    (d) The Commission and Department are encouraged to involve
8other essential groups in the work of the Commission,
9including, but not limited to:
10        (1) public universities;
11        (2) community colleges;
12        (3) other educational institutions; and
13        (4) the Department of Labor.
14    (e) The Commission shall make recommendations, which must
15be approved by a majority of the members of the Commission, to
16the Department concerning the award of grants from amounts
17appropriated to the Department from the Latino Community
18Economic Development Fund, a special fund in the State
19treasury. The Department shall make grants to public or private
20entities submitting proposals to the Commission to assist in
21the economic development of the Latino community. Grants may be
22used by these entities only for those purposes conditioned with
23the grant. The Commission shall coordinate with the Department
24to develop grant criteria.
25    (f) For the purposes of this Section:
26    "Department" means the Department of Commerce and Economic

 

 

SB0007- 70 -LRB100 06307 AMC 16345 b

1Development.
2    "Director" means the Director of Commerce and Economic
3Development.
4    "Educational institutions" means nonprofit public and
5private colleges, community colleges, State colleges, and
6universities in this State.
 
7    Section 90-8. The Illinois Lottery Law is amended by
8changing Section 9.1 as follows:
 
9    (20 ILCS 1605/9.1)
10    Sec. 9.1. Private manager and management agreement.
11    (a) As used in this Section:
12    "Offeror" means a person or group of persons that responds
13to a request for qualifications under this Section.
14    "Request for qualifications" means all materials and
15documents prepared by the Department to solicit the following
16from offerors:
17        (1) Statements of qualifications.
18        (2) Proposals to enter into a management agreement,
19    including the identity of any prospective vendor or vendors
20    that the offeror intends to initially engage to assist the
21    offeror in performing its obligations under the management
22    agreement.
23    "Final offer" means the last proposal submitted by an
24offeror in response to the request for qualifications,

 

 

SB0007- 71 -LRB100 06307 AMC 16345 b

1including the identity of any prospective vendor or vendors
2that the offeror intends to initially engage to assist the
3offeror in performing its obligations under the management
4agreement.
5    "Final offeror" means the offeror ultimately selected by
6the Governor to be the private manager for the Lottery under
7subsection (h) of this Section.
8    (b) By September 15, 2010, the Governor shall select a
9private manager for the total management of the Lottery with
10integrated functions, such as lottery game design, supply of
11goods and services, and advertising and as specified in this
12Section.
13    (c) Pursuant to the terms of this subsection, the
14Department shall endeavor to expeditiously terminate the
15existing contracts in support of the Lottery in effect on the
16effective date of this amendatory Act of the 96th General
17Assembly in connection with the selection of the private
18manager. As part of its obligation to terminate these contracts
19and select the private manager, the Department shall establish
20a mutually agreeable timetable to transfer the functions of
21existing contractors to the private manager so that existing
22Lottery operations are not materially diminished or impaired
23during the transition. To that end, the Department shall do the
24following:
25        (1) where such contracts contain a provision
26    authorizing termination upon notice, the Department shall

 

 

SB0007- 72 -LRB100 06307 AMC 16345 b

1    provide notice of termination to occur upon the mutually
2    agreed timetable for transfer of functions;
3        (2) upon the expiration of any initial term or renewal
4    term of the current Lottery contracts, the Department shall
5    not renew such contract for a term extending beyond the
6    mutually agreed timetable for transfer of functions; or
7        (3) in the event any current contract provides for
8    termination of that contract upon the implementation of a
9    contract with the private manager, the Department shall
10    perform all necessary actions to terminate the contract on
11    the date that coincides with the mutually agreed timetable
12    for transfer of functions.
13    If the contracts to support the current operation of the
14Lottery in effect on the effective date of this amendatory Act
15of the 96th General Assembly are not subject to termination as
16provided for in this subsection (c), then the Department may
17include a provision in the contract with the private manager
18specifying a mutually agreeable methodology for incorporation.
19    (c-5) The Department shall include provisions in the
20management agreement whereby the private manager shall, for a
21fee, and pursuant to a contract negotiated with the Department
22(the "Employee Use Contract"), utilize the services of current
23Department employees to assist in the administration and
24operation of the Lottery. The Department shall be the employer
25of all such bargaining unit employees assigned to perform such
26work for the private manager, and such employees shall be State

 

 

SB0007- 73 -LRB100 06307 AMC 16345 b

1employees, as defined by the Personnel Code. Department
2employees shall operate under the same employment policies,
3rules, regulations, and procedures, as other employees of the
4Department. In addition, neither historical representation
5rights under the Illinois Public Labor Relations Act, nor
6existing collective bargaining agreements, shall be disturbed
7by the management agreement with the private manager for the
8management of the Lottery.
9    (d) The management agreement with the private manager shall
10include all of the following:
11        (1) A term not to exceed 10 years, including any
12    renewals.
13        (2) A provision specifying that the Department:
14            (A) shall exercise actual control over all
15        significant business decisions;
16            (A-5) has the authority to direct or countermand
17        operating decisions by the private manager at any time;
18            (B) has ready access at any time to information
19        regarding Lottery operations;
20            (C) has the right to demand and receive information
21        from the private manager concerning any aspect of the
22        Lottery operations at any time; and
23            (D) retains ownership of all trade names,
24        trademarks, and intellectual property associated with
25        the Lottery.
26        (3) A provision imposing an affirmative duty on the

 

 

SB0007- 74 -LRB100 06307 AMC 16345 b

1    private manager to provide the Department with material
2    information and with any information the private manager
3    reasonably believes the Department would want to know to
4    enable the Department to conduct the Lottery.
5        (4) A provision requiring the private manager to
6    provide the Department with advance notice of any operating
7    decision that bears significantly on the public interest,
8    including, but not limited to, decisions on the kinds of
9    games to be offered to the public and decisions affecting
10    the relative risk and reward of the games being offered, so
11    the Department has a reasonable opportunity to evaluate and
12    countermand that decision.
13        (5) A provision providing for compensation of the
14    private manager that may consist of, among other things, a
15    fee for services and a performance based bonus as
16    consideration for managing the Lottery, including terms
17    that may provide the private manager with an increase in
18    compensation if Lottery revenues grow by a specified
19    percentage in a given year.
20        (6) (Blank).
21        (7) A provision requiring the deposit of all Lottery
22    proceeds to be deposited into the State Lottery Fund except
23    as otherwise provided in Section 20 of this Act.
24        (8) A provision requiring the private manager to locate
25    its principal office within the State.
26        (8-5) A provision encouraging that at least 20% of the

 

 

SB0007- 75 -LRB100 06307 AMC 16345 b

1    cost of contracts entered into for goods and services by
2    the private manager in connection with its management of
3    the Lottery, other than contracts with sales agents or
4    technical advisors, be awarded to businesses that are a
5    minority owned business, a female owned business, or a
6    business owned by a person with disability, as those terms
7    are defined in the Business Enterprise for Minorities,
8    Females, and Persons with Disabilities Act.
9        (9) A requirement that so long as the private manager
10    complies with all the conditions of the agreement under the
11    oversight of the Department, the private manager shall have
12    the following duties and obligations with respect to the
13    management of the Lottery:
14            (A) The right to use equipment and other assets
15        used in the operation of the Lottery.
16            (B) The rights and obligations under contracts
17        with retailers and vendors.
18            (C) The implementation of a comprehensive security
19        program by the private manager.
20            (D) The implementation of a comprehensive system
21        of internal audits.
22            (E) The implementation of a program by the private
23        manager to curb compulsive gambling by persons playing
24        the Lottery.
25            (F) A system for determining (i) the type of
26        Lottery games, (ii) the method of selecting winning

 

 

SB0007- 76 -LRB100 06307 AMC 16345 b

1        tickets, (iii) the manner of payment of prizes to
2        holders of winning tickets, (iv) the frequency of
3        drawings of winning tickets, (v) the method to be used
4        in selling tickets, (vi) a system for verifying the
5        validity of tickets claimed to be winning tickets,
6        (vii) the basis upon which retailer commissions are
7        established by the manager, and (viii) minimum
8        payouts.
9        (10) A requirement that advertising and promotion must
10    be consistent with Section 7.8a of this Act.
11        (11) A requirement that the private manager market the
12    Lottery to those residents who are new, infrequent, or
13    lapsed players of the Lottery, especially those who are
14    most likely to make regular purchases on the Internet as
15    permitted by law.
16        (12) A code of ethics for the private manager's
17    officers and employees.
18        (13) A requirement that the Department monitor and
19    oversee the private manager's practices and take action
20    that the Department considers appropriate to ensure that
21    the private manager is in compliance with the terms of the
22    management agreement, while allowing the manager, unless
23    specifically prohibited by law or the management
24    agreement, to negotiate and sign its own contracts with
25    vendors.
26        (14) A provision requiring the private manager to

 

 

SB0007- 77 -LRB100 06307 AMC 16345 b

1    periodically file, at least on an annual basis, appropriate
2    financial statements in a form and manner acceptable to the
3    Department.
4        (15) Cash reserves requirements.
5        (16) Procedural requirements for obtaining the prior
6    approval of the Department when a management agreement or
7    an interest in a management agreement is sold, assigned,
8    transferred, or pledged as collateral to secure financing.
9        (17) Grounds for the termination of the management
10    agreement by the Department or the private manager.
11        (18) Procedures for amendment of the agreement.
12        (19) A provision requiring the private manager to
13    engage in an open and competitive bidding process for any
14    procurement having a cost in excess of $50,000 that is not
15    a part of the private manager's final offer. The process
16    shall favor the selection of a vendor deemed to have
17    submitted a proposal that provides the Lottery with the
18    best overall value. The process shall not be subject to the
19    provisions of the Illinois Procurement Code, unless
20    specifically required by the management agreement.
21        (20) The transition of rights and obligations,
22    including any associated equipment or other assets used in
23    the operation of the Lottery, from the manager to any
24    successor manager of the lottery, including the
25    Department, following the termination of or foreclosure
26    upon the management agreement.

 

 

SB0007- 78 -LRB100 06307 AMC 16345 b

1        (21) Right of use of copyrights, trademarks, and
2    service marks held by the Department in the name of the
3    State. The agreement must provide that any use of them by
4    the manager shall only be for the purpose of fulfilling its
5    obligations under the management agreement during the term
6    of the agreement.
7        (22) The disclosure of any information requested by the
8    Department to enable it to comply with the reporting
9    requirements and information requests provided for under
10    subsection (p) of this Section.
11    (e) Notwithstanding any other law to the contrary, the
12Department shall select a private manager through a competitive
13request for qualifications process consistent with Section
1420-35 of the Illinois Procurement Code, which shall take into
15account:
16        (1) the offeror's ability to market the Lottery to
17    those residents who are new, infrequent, or lapsed players
18    of the Lottery, especially those who are most likely to
19    make regular purchases on the Internet;
20        (2) the offeror's ability to address the State's
21    concern with the social effects of gambling on those who
22    can least afford to do so;
23        (3) the offeror's ability to provide the most
24    successful management of the Lottery for the benefit of the
25    people of the State based on current and past business
26    practices or plans of the offeror; and

 

 

SB0007- 79 -LRB100 06307 AMC 16345 b

1        (4) the offeror's poor or inadequate past performance
2    in servicing, equipping, operating or managing a lottery on
3    behalf of Illinois, another State or foreign government and
4    attracting persons who are not currently regular players of
5    a lottery.
6    (f) The Department may retain the services of an advisor or
7advisors with significant experience in financial services or
8the management, operation, and procurement of goods, services,
9and equipment for a government-run lottery to assist in the
10preparation of the terms of the request for qualifications and
11selection of the private manager. Any prospective advisor
12seeking to provide services under this subsection (f) shall
13disclose any material business or financial relationship
14during the past 3 years with any potential offeror, or with a
15contractor or subcontractor presently providing goods,
16services, or equipment to the Department to support the
17Lottery. The Department shall evaluate the material business or
18financial relationship of each prospective advisor. The
19Department shall not select any prospective advisor with a
20substantial business or financial relationship that the
21Department deems to impair the objectivity of the services to
22be provided by the prospective advisor. During the course of
23the advisor's engagement by the Department, and for a period of
24one year thereafter, the advisor shall not enter into any
25business or financial relationship with any offeror or any
26vendor identified to assist an offeror in performing its

 

 

SB0007- 80 -LRB100 06307 AMC 16345 b

1obligations under the management agreement. Any advisor
2retained by the Department shall be disqualified from being an
3offeror. The Department shall not include terms in the request
4for qualifications that provide a material advantage whether
5directly or indirectly to any potential offeror, or any
6contractor or subcontractor presently providing goods,
7services, or equipment to the Department to support the
8Lottery, including terms contained in previous responses to
9requests for proposals or qualifications submitted to
10Illinois, another State or foreign government when those terms
11are uniquely associated with a particular potential offeror,
12contractor, or subcontractor. The request for proposals
13offered by the Department on December 22, 2008 as
14"LOT08GAMESYS" and reference number "22016176" is declared
15void.
16    (g) The Department shall select at least 2 offerors as
17finalists to potentially serve as the private manager no later
18than August 9, 2010. Upon making preliminary selections, the
19Department shall schedule a public hearing on the finalists'
20proposals and provide public notice of the hearing at least 7
21calendar days before the hearing. The notice must include all
22of the following:
23        (1) The date, time, and place of the hearing.
24        (2) The subject matter of the hearing.
25        (3) A brief description of the management agreement to
26    be awarded.

 

 

SB0007- 81 -LRB100 06307 AMC 16345 b

1        (4) The identity of the offerors that have been
2    selected as finalists to serve as the private manager.
3        (5) The address and telephone number of the Department.
4    (h) At the public hearing, the Department shall (i) provide
5sufficient time for each finalist to present and explain its
6proposal to the Department and the Governor or the Governor's
7designee, including an opportunity to respond to questions
8posed by the Department, Governor, or designee and (ii) allow
9the public and non-selected offerors to comment on the
10presentations. The Governor or a designee shall attend the
11public hearing. After the public hearing, the Department shall
12have 14 calendar days to recommend to the Governor whether a
13management agreement should be entered into with a particular
14finalist. After reviewing the Department's recommendation, the
15Governor may accept or reject the Department's recommendation,
16and shall select a final offeror as the private manager by
17publication of a notice in the Illinois Procurement Bulletin on
18or before September 15, 2010. The Governor shall include in the
19notice a detailed explanation and the reasons why the final
20offeror is superior to other offerors and will provide
21management services in a manner that best achieves the
22objectives of this Section. The Governor shall also sign the
23management agreement with the private manager.
24    (i) Any action to contest the private manager selected by
25the Governor under this Section must be brought within 7
26calendar days after the publication of the notice of the

 

 

SB0007- 82 -LRB100 06307 AMC 16345 b

1designation of the private manager as provided in subsection
2(h) of this Section.
3    (j) The Lottery shall remain, for so long as a private
4manager manages the Lottery in accordance with provisions of
5this Act, a Lottery conducted by the State, and the State shall
6not be authorized to sell or transfer the Lottery to a third
7party.
8    (k) Any tangible personal property used exclusively in
9connection with the lottery that is owned by the Department and
10leased to the private manager shall be owned by the Department
11in the name of the State and shall be considered to be public
12property devoted to an essential public and governmental
13function.
14    (l) The Department may exercise any of its powers under
15this Section or any other law as necessary or desirable for the
16execution of the Department's powers under this Section.
17    (m) Neither this Section nor any management agreement
18entered into under this Section prohibits the General Assembly
19from authorizing forms of gambling that are not in direct
20competition with the Lottery. The forms of gambling authorized
21by this amendatory Act of the 100th General Assembly constitute
22authorized forms of gambling that are not in direct competition
23with the Lottery.
24    (n) The private manager shall be subject to a complete
25investigation in the third, seventh, and tenth years of the
26agreement (if the agreement is for a 10-year term) by the

 

 

SB0007- 83 -LRB100 06307 AMC 16345 b

1Department in cooperation with the Auditor General to determine
2whether the private manager has complied with this Section and
3the management agreement. The private manager shall bear the
4cost of an investigation or reinvestigation of the private
5manager under this subsection.
6    (o) The powers conferred by this Section are in addition
7and supplemental to the powers conferred by any other law. If
8any other law or rule is inconsistent with this Section,
9including, but not limited to, provisions of the Illinois
10Procurement Code, then this Section controls as to any
11management agreement entered into under this Section. This
12Section and any rules adopted under this Section contain full
13and complete authority for a management agreement between the
14Department and a private manager. No law, procedure,
15proceeding, publication, notice, consent, approval, order, or
16act by the Department or any other officer, Department, agency,
17or instrumentality of the State or any political subdivision is
18required for the Department to enter into a management
19agreement under this Section. This Section contains full and
20complete authority for the Department to approve any contracts
21entered into by a private manager with a vendor providing
22goods, services, or both goods and services to the private
23manager under the terms of the management agreement, including
24subcontractors of such vendors.
25    Upon receipt of a written request from the Chief
26Procurement Officer, the Department shall provide to the Chief

 

 

SB0007- 84 -LRB100 06307 AMC 16345 b

1Procurement Officer a complete and un-redacted copy of the
2management agreement or any contract that is subject to the
3Department's approval authority under this subsection (o). The
4Department shall provide a copy of the agreement or contract to
5the Chief Procurement Officer in the time specified by the
6Chief Procurement Officer in his or her written request, but no
7later than 5 business days after the request is received by the
8Department. The Chief Procurement Officer must retain any
9portions of the management agreement or of any contract
10designated by the Department as confidential, proprietary, or
11trade secret information in complete confidence pursuant to
12subsection (g) of Section 7 of the Freedom of Information Act.
13The Department shall also provide the Chief Procurement Officer
14with reasonable advance written notice of any contract that is
15pending Department approval.
16    Notwithstanding any other provision of this Section to the
17contrary, the Chief Procurement Officer shall adopt
18administrative rules, including emergency rules, to establish
19a procurement process to select a successor private manager if
20a private management agreement has been terminated. The
21selection process shall at a minimum take into account the
22criteria set forth in items (1) through (4) of subsection (e)
23of this Section and may include provisions consistent with
24subsections (f), (g), (h), and (i) of this Section. The Chief
25Procurement Officer shall also implement and administer the
26adopted selection process upon the termination of a private

 

 

SB0007- 85 -LRB100 06307 AMC 16345 b

1management agreement. The Department, after the Chief
2Procurement Officer certifies that the procurement process has
3been followed in accordance with the rules adopted under this
4subsection (o), shall select a final offeror as the private
5manager and sign the management agreement with the private
6manager.
7    Except as provided in Sections 21.2, 21.5, 21.6, 21.7,
821.8, and 21.9, the Department shall distribute all proceeds of
9lottery tickets and shares sold in the following priority and
10manner:
11        (1) The payment of prizes and retailer bonuses.
12        (2) The payment of costs incurred in the operation and
13    administration of the Lottery, including the payment of
14    sums due to the private manager under the management
15    agreement with the Department.
16        (3) On the last day of each month or as soon thereafter
17    as possible, the State Comptroller shall direct and the
18    State Treasurer shall transfer from the State Lottery Fund
19    to the Common School Fund an amount that is equal to the
20    proceeds transferred in the corresponding month of fiscal
21    year 2009, as adjusted for inflation, to the Common School
22    Fund.
23        (4) On or before the last day of each fiscal year,
24    deposit any remaining proceeds, subject to payments under
25    items (1), (2), and (3) into the Capital Projects Fund each
26    fiscal year.

 

 

SB0007- 86 -LRB100 06307 AMC 16345 b

1    (p) The Department shall be subject to the following
2reporting and information request requirements:
3        (1) the Department shall submit written quarterly
4    reports to the Governor and the General Assembly on the
5    activities and actions of the private manager selected
6    under this Section;
7        (2) upon request of the Chief Procurement Officer, the
8    Department shall promptly produce information related to
9    the procurement activities of the Department and the
10    private manager requested by the Chief Procurement
11    Officer; the Chief Procurement Officer must retain
12    confidential, proprietary, or trade secret information
13    designated by the Department in complete confidence
14    pursuant to subsection (g) of Section 7 of the Freedom of
15    Information Act; and
16        (3) at least 30 days prior to the beginning of the
17    Department's fiscal year, the Department shall prepare an
18    annual written report on the activities of the private
19    manager selected under this Section and deliver that report
20    to the Governor and General Assembly.
21(Source: P.A. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13;
2298-649, eff. 6-16-14.)
 
23    Section 90-10. The Department of Revenue Law of the Civil
24Administrative Code of Illinois is amended by changing Section
252505-305 as follows:
 

 

 

SB0007- 87 -LRB100 06307 AMC 16345 b

1    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
2    Sec. 2505-305. Investigators.
3    (a) The Department has the power to appoint investigators
4to conduct all investigations, searches, seizures, arrests,
5and other duties imposed under the provisions of any law
6administered by the Department. Except as provided in
7subsection (c), these investigators have and may exercise all
8the powers of peace officers solely for the purpose of
9enforcing taxing measures administered by the Department.
10    (b) The Director must authorize to each investigator
11employed under this Section and to any other employee of the
12Department exercising the powers of a peace officer a distinct
13badge that, on its face, (i) clearly states that the badge is
14authorized by the Department and (ii) contains a unique
15identifying number. No other badge shall be authorized by the
16Department.
17    (c) The Department may enter into agreements with the
18Illinois Gaming Board providing that investigators appointed
19under this Section shall exercise the peace officer powers set
20forth in paragraph (20.6) of subsection (c) of Section 5 of the
21Illinois Riverboat Gambling Act.
22(Source: P.A. 96-37, eff. 7-13-09.)
 
23    Section 90-12. The Illinois State Auditing Act is amended
24by changing Section 3-1 as follows:
 

 

 

SB0007- 88 -LRB100 06307 AMC 16345 b

1    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
2    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
3General has jurisdiction over all State agencies to make post
4audits and investigations authorized by or under this Act or
5the Constitution.
6    The Auditor General has jurisdiction over local government
7agencies and private agencies only:
8        (a) to make such post audits authorized by or under
9    this Act as are necessary and incidental to a post audit of
10    a State agency or of a program administered by a State
11    agency involving public funds of the State, but this
12    jurisdiction does not include any authority to review local
13    governmental agencies in the obligation, receipt,
14    expenditure or use of public funds of the State that are
15    granted without limitation or condition imposed by law,
16    other than the general limitation that such funds be used
17    for public purposes;
18        (b) to make investigations authorized by or under this
19    Act or the Constitution; and
20        (c) to make audits of the records of local government
21    agencies to verify actual costs of state-mandated programs
22    when directed to do so by the Legislative Audit Commission
23    at the request of the State Board of Appeals under the
24    State Mandates Act.
25    In addition to the foregoing, the Auditor General may

 

 

SB0007- 89 -LRB100 06307 AMC 16345 b

1conduct an audit of the Metropolitan Pier and Exposition
2Authority, the Regional Transportation Authority, the Suburban
3Bus Division, the Commuter Rail Division and the Chicago
4Transit Authority and any other subsidized carrier when
5authorized by the Legislative Audit Commission. Such audit may
6be a financial, management or program audit, or any combination
7thereof.
8    The audit shall determine whether they are operating in
9accordance with all applicable laws and regulations. Subject to
10the limitations of this Act, the Legislative Audit Commission
11may by resolution specify additional determinations to be
12included in the scope of the audit.
13    In addition to the foregoing, the Auditor General must also
14conduct a financial audit of the Illinois Sports Facilities
15Authority's expenditures of public funds in connection with the
16reconstruction, renovation, remodeling, extension, or
17improvement of all or substantially all of any existing
18"facility", as that term is defined in the Illinois Sports
19Facilities Authority Act.
20    The Auditor General may also conduct an audit, when
21authorized by the Legislative Audit Commission, of any hospital
22which receives 10% or more of its gross revenues from payments
23from the State of Illinois, Department of Healthcare and Family
24Services (formerly Department of Public Aid), Medical
25Assistance Program.
26    The Auditor General is authorized to conduct financial and

 

 

SB0007- 90 -LRB100 06307 AMC 16345 b

1compliance audits of the Illinois Distance Learning Foundation
2and the Illinois Conservation Foundation.
3    As soon as practical after the effective date of this
4amendatory Act of 1995, the Auditor General shall conduct a
5compliance and management audit of the City of Chicago and any
6other entity with regard to the operation of Chicago O'Hare
7International Airport, Chicago Midway Airport and Merrill C.
8Meigs Field. The audit shall include, but not be limited to, an
9examination of revenues, expenses, and transfers of funds;
10purchasing and contracting policies and practices; staffing
11levels; and hiring practices and procedures. When completed,
12the audit required by this paragraph shall be distributed in
13accordance with Section 3-14.
14    The Auditor General shall conduct a financial and
15compliance and program audit of distributions from the
16Municipal Economic Development Fund during the immediately
17preceding calendar year pursuant to Section 8-403.1 of the
18Public Utilities Act at no cost to the city, village, or
19incorporated town that received the distributions.
20    The Auditor General must conduct an audit of the Health
21Facilities and Services Review Board pursuant to Section 19.5
22of the Illinois Health Facilities Planning Act.
23    The Auditor General must conduct an audit of the Chicago
24Casino Development Authority pursuant to Section 1-60 of the
25Chicago Casino Development Authority Act.
26    The Auditor General of the State of Illinois shall annually

 

 

SB0007- 91 -LRB100 06307 AMC 16345 b

1conduct or cause to be conducted a financial and compliance
2audit of the books and records of any county water commission
3organized pursuant to the Water Commission Act of 1985 and
4shall file a copy of the report of that audit with the Governor
5and the Legislative Audit Commission. The filed audit shall be
6open to the public for inspection. The cost of the audit shall
7be charged to the county water commission in accordance with
8Section 6z-27 of the State Finance Act. The county water
9commission shall make available to the Auditor General its
10books and records and any other documentation, whether in the
11possession of its trustees or other parties, necessary to
12conduct the audit required. These audit requirements apply only
13through July 1, 2007.
14    The Auditor General must conduct audits of the Rend Lake
15Conservancy District as provided in Section 25.5 of the River
16Conservancy Districts Act.
17    The Auditor General must conduct financial audits of the
18Southeastern Illinois Economic Development Authority as
19provided in Section 70 of the Southeastern Illinois Economic
20Development Authority Act.
21    The Auditor General shall conduct a compliance audit in
22accordance with subsections (d) and (f) of Section 30 of the
23Innovation Development and Economy Act.
24(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
2596-939, eff. 6-24-10.)
 

 

 

SB0007- 92 -LRB100 06307 AMC 16345 b

1    Section 90-15. The State Finance Act is amended by adding
2Sections 5.878, 5.879, 5.880, and 6z-102 and by changing
3Section 6z-45 as follows:
 
4    (30 ILCS 105/5.878 new)
5    Sec. 5.878. The Gaming Facilities Fee Revenue Fund.
 
6    (30 ILCS 105/5.879 new)
7    Sec. 5.879. The Depressed Communities Economic Development
8Fund.
 
9    (30 ILCS 105/5.880 new)
10    Sec. 5.880. The Latino Community Economic Development
11Fund.
 
12    (30 ILCS 105/6z-45)
13    Sec. 6z-45. The School Infrastructure Fund.
14    (a) The School Infrastructure Fund is created as a special
15fund in the State Treasury.
16    In addition to any other deposits authorized by law,
17beginning January 1, 2000, on the first day of each month, or
18as soon thereafter as may be practical, the State Treasurer and
19State Comptroller shall transfer the sum of $5,000,000 from the
20General Revenue Fund to the School Infrastructure Fund, except
21that, notwithstanding any other provision of law, and in
22addition to any other transfers that may be provided for by

 

 

SB0007- 93 -LRB100 06307 AMC 16345 b

1law, before June 30, 2012, the Comptroller and the Treasurer
2shall transfer $45,000,000 from the General Revenue Fund into
3the School Infrastructure Fund, and, for fiscal year 2013 only,
4the Treasurer and the Comptroller shall transfer $1,250,000
5from the General Revenue Fund to the School Infrastructure Fund
6on the first day of each month; provided, however, that no such
7transfers shall be made from July 1, 2001 through June 30,
82003.
9    (b) Subject to the transfer provisions set forth below,
10money in the School Infrastructure Fund shall, if and when the
11State of Illinois incurs any bonded indebtedness for the
12construction of school improvements under the School
13Construction Law, be set aside and used for the purpose of
14paying and discharging annually the principal and interest on
15that bonded indebtedness then due and payable, and for no other
16purpose.
17    In addition to other transfers to the General Obligation
18Bond Retirement and Interest Fund made pursuant to Section 15
19of the General Obligation Bond Act, upon each delivery of bonds
20issued for construction of school improvements under the School
21Construction Law, the State Comptroller shall compute and
22certify to the State Treasurer the total amount of principal
23of, interest on, and premium, if any, on such bonds during the
24then current and each succeeding fiscal year. With respect to
25the interest payable on variable rate bonds, such
26certifications shall be calculated at the maximum rate of

 

 

SB0007- 94 -LRB100 06307 AMC 16345 b

1interest that may be payable during the fiscal year, after
2taking into account any credits permitted in the related
3indenture or other instrument against the amount of such
4interest required to be appropriated for that period.
5    On or before the last day of each month, the State
6Treasurer and State Comptroller shall transfer from the School
7Infrastructure Fund to the General Obligation Bond Retirement
8and Interest Fund an amount sufficient to pay the aggregate of
9the principal of, interest on, and premium, if any, on the
10bonds payable on their next payment date, divided by the number
11of monthly transfers occurring between the last previous
12payment date (or the delivery date if no payment date has yet
13occurred) and the next succeeding payment date. Interest
14payable on variable rate bonds shall be calculated at the
15maximum rate of interest that may be payable for the relevant
16period, after taking into account any credits permitted in the
17related indenture or other instrument against the amount of
18such interest required to be appropriated for that period.
19Interest for which moneys have already been deposited into the
20capitalized interest account within the General Obligation
21Bond Retirement and Interest Fund shall not be included in the
22calculation of the amounts to be transferred under this
23subsection.
24    (b-5) The money deposited into the School Infrastructure
25Fund from transfers pursuant to subsections (c-30) and (c-35)
26of Section 13 of the Illinois Riverboat Gambling Act shall be

 

 

SB0007- 95 -LRB100 06307 AMC 16345 b

1applied, without further direction, as provided in subsection
2(b-3) of Section 5-35 of the School Construction Law.
3    (c) The surplus, if any, in the School Infrastructure Fund
4after payments made pursuant to subsections (b) and (b-5) of
5this Section shall, subject to appropriation, be used as
6follows:
7    First - to make 3 payments to the School Technology
8Revolving Loan Fund as follows:
9        Transfer of $30,000,000 in fiscal year 1999;
10        Transfer of $20,000,000 in fiscal year 2000; and
11        Transfer of $10,000,000 in fiscal year 2001.
12    Second - to pay the expenses of the State Board of
13Education and the Capital Development Board in administering
14programs under the School Construction Law, the total expenses
15not to exceed $1,200,000 in any fiscal year.
16    Third - to pay any amounts due for grants for school
17construction projects and debt service under the School
18Construction Law.
19    Fourth - to pay any amounts due for grants for school
20maintenance projects under the School Construction Law.
21(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
 
22    (30 ILCS 105/6z-102 new)
23    Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.
24    (a) The Gaming Facilities Fee Revenue Fund is created as a
25special fund in the State treasury.

 

 

SB0007- 96 -LRB100 06307 AMC 16345 b

1    (b) The revenues in the Fund shall be used, subject to
2appropriation, by the Comptroller for the purpose of (i)
3providing appropriations to the Illinois Gaming Board for the
4administration and enforcement of the Illinois Gambling Act and
5the applicable provisions of the Chicago Casino Development
6Authority Act and (ii) payment of vouchers that are outstanding
7for more than 60 days. Whenever practical, the Comptroller must
8prioritize voucher payments for expenses related to medical
9assistance under the Illinois Public Aid Code, the Children's
10Health Insurance Program Act, the Covering ALL KIDS Health
11Insurance Act, and the Senior Citizens and Disabled Persons
12Property Tax Relief and Pharmaceutical Assistance Act.
13    (c) The Fund shall consist of fee revenues received
14pursuant to subsection (e) of Section 1-45 of the Chicago
15Casino Development Authority Act and pursuant to subsections
16(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections
17(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
18Act. All interest earned on moneys in the Fund shall be
19deposited into the Fund.
20    (d) The Fund shall not be subject to administrative charges
21or chargebacks, including, but not limited to, those authorized
22under subsection (h) of Section 8 of this Act.
 
23    Section 90-20. The Illinois Income Tax Act is amended by
24changing Sections 201, 303, 304 and 710 as follows:
 

 

 

SB0007- 97 -LRB100 06307 AMC 16345 b

1    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
2    Sec. 201. Tax Imposed.
3    (a) In general. A tax measured by net income is hereby
4imposed on every individual, corporation, trust and estate for
5each taxable year ending after July 31, 1969 on the privilege
6of earning or receiving income in or as a resident of this
7State. Such tax shall be in addition to all other occupation or
8privilege taxes imposed by this State or by any municipal
9corporation or political subdivision thereof.
10    (b) Rates. The tax imposed by subsection (a) of this
11Section shall be determined as follows, except as adjusted by
12subsection (d-1):
13        (1) In the case of an individual, trust or estate, for
14    taxable years ending prior to July 1, 1989, an amount equal
15    to 2 1/2% of the taxpayer's net income for the taxable
16    year.
17        (2) In the case of an individual, trust or estate, for
18    taxable years beginning prior to July 1, 1989 and ending
19    after June 30, 1989, an amount equal to the sum of (i) 2
20    1/2% of the taxpayer's net income for the period prior to
21    July 1, 1989, as calculated under Section 202.3, and (ii)
22    3% of the taxpayer's net income for the period after June
23    30, 1989, as calculated under Section 202.3.
24        (3) In the case of an individual, trust or estate, for
25    taxable years beginning after June 30, 1989, and ending
26    prior to January 1, 2011, an amount equal to 3% of the

 

 

SB0007- 98 -LRB100 06307 AMC 16345 b

1    taxpayer's net income for the taxable year.
2        (4) In the case of an individual, trust, or estate, for
3    taxable years beginning prior to January 1, 2011, and
4    ending after December 31, 2010, an amount equal to the sum
5    of (i) 3% of the taxpayer's net income for the period prior
6    to January 1, 2011, as calculated under Section 202.5, and
7    (ii) 5% of the taxpayer's net income for the period after
8    December 31, 2010, as calculated under Section 202.5.
9        (5) In the case of an individual, trust, or estate, for
10    taxable years beginning on or after January 1, 2011, and
11    ending prior to January 1, 2015, an amount equal to 5% of
12    the taxpayer's net income for the taxable year.
13        (5.1) In the case of an individual, trust, or estate,
14    for taxable years beginning prior to January 1, 2015, and
15    ending after December 31, 2014, an amount equal to the sum
16    of (i) 5% of the taxpayer's net income for the period prior
17    to January 1, 2015, as calculated under Section 202.5, and
18    (ii) 3.75% of the taxpayer's net income for the period
19    after December 31, 2014, as calculated under Section 202.5.
20        (5.2) In the case of an individual, trust, or estate,
21    for taxable years beginning on or after January 1, 2015,
22    and ending prior to January 1, 2025, an amount equal to
23    3.75% of the taxpayer's net income for the taxable year.
24        (5.3) In the case of an individual, trust, or estate,
25    for taxable years beginning prior to January 1, 2025, and
26    ending after December 31, 2024, an amount equal to the sum

 

 

SB0007- 99 -LRB100 06307 AMC 16345 b

1    of (i) 3.75% of the taxpayer's net income for the period
2    prior to January 1, 2025, as calculated under Section
3    202.5, and (ii) 3.25% of the taxpayer's net income for the
4    period after December 31, 2024, as calculated under Section
5    202.5.
6        (5.4) In the case of an individual, trust, or estate,
7    for taxable years beginning on or after January 1, 2025, an
8    amount equal to 3.25% of the taxpayer's net income for the
9    taxable year.
10        (6) In the case of a corporation, for taxable years
11    ending prior to July 1, 1989, an amount equal to 4% of the
12    taxpayer's net income for the taxable year.
13        (7) In the case of a corporation, for taxable years
14    beginning prior to July 1, 1989 and ending after June 30,
15    1989, an amount equal to the sum of (i) 4% of the
16    taxpayer's net income for the period prior to July 1, 1989,
17    as calculated under Section 202.3, and (ii) 4.8% of the
18    taxpayer's net income for the period after June 30, 1989,
19    as calculated under Section 202.3.
20        (8) In the case of a corporation, for taxable years
21    beginning after June 30, 1989, and ending prior to January
22    1, 2011, an amount equal to 4.8% of the taxpayer's net
23    income for the taxable year.
24        (9) In the case of a corporation, for taxable years
25    beginning prior to January 1, 2011, and ending after
26    December 31, 2010, an amount equal to the sum of (i) 4.8%

 

 

SB0007- 100 -LRB100 06307 AMC 16345 b

1    of the taxpayer's net income for the period prior to
2    January 1, 2011, as calculated under Section 202.5, and
3    (ii) 7% of the taxpayer's net income for the period after
4    December 31, 2010, as calculated under Section 202.5.
5        (10) In the case of a corporation, for taxable years
6    beginning on or after January 1, 2011, and ending prior to
7    January 1, 2015, an amount equal to 7% of the taxpayer's
8    net income for the taxable year.
9        (11) In the case of a corporation, for taxable years
10    beginning prior to January 1, 2015, and ending after
11    December 31, 2014, an amount equal to the sum of (i) 7% of
12    the taxpayer's net income for the period prior to January
13    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
14    of the taxpayer's net income for the period after December
15    31, 2014, as calculated under Section 202.5.
16        (12) In the case of a corporation, for taxable years
17    beginning on or after January 1, 2015, and ending prior to
18    January 1, 2025, an amount equal to 5.25% of the taxpayer's
19    net income for the taxable year.
20        (13) In the case of a corporation, for taxable years
21    beginning prior to January 1, 2025, and ending after
22    December 31, 2024, an amount equal to the sum of (i) 5.25%
23    of the taxpayer's net income for the period prior to
24    January 1, 2025, as calculated under Section 202.5, and
25    (ii) 4.8% of the taxpayer's net income for the period after
26    December 31, 2024, as calculated under Section 202.5.

 

 

SB0007- 101 -LRB100 06307 AMC 16345 b

1        (14) In the case of a corporation, for taxable years
2    beginning on or after January 1, 2025, an amount equal to
3    4.8% of the taxpayer's net income for the taxable year.
4    The rates under this subsection (b) are subject to the
5provisions of Section 201.5.
6    (b-5) Surcharge; sale or exchange of assets, properties,
7and intangibles of electronic gaming licensees. For each of
8taxable years 2017 through 2025, a surcharge is imposed on all
9taxpayers on income arising from the sale or exchange of
10capital assets, depreciable business property, real property
11used in the trade or business, and Section 197 intangibles (i)
12of an organization licensee under the Illinois Horse Racing Act
13of 1975 and (ii) of an electronic gaming licensee under the
14Illinois Gambling Act. The amount of the surcharge is equal to
15the amount of federal income tax liability for the taxable year
16attributable to those sales and exchanges. The surcharge
17imposed shall not apply if:
18        (1) the electronic gaming license, organization
19    license, or race track property is transferred as a result
20    of any of the following:
21            (A) bankruptcy, a receivership, or a debt
22        adjustment initiated by or against the initial
23        licensee or the substantial owners of the initial
24        licensee;
25            (B) cancellation, revocation, or termination of
26        any such license by the Illinois Gaming Board or the

 

 

SB0007- 102 -LRB100 06307 AMC 16345 b

1        Illinois Racing Board;
2            (C) a determination by the Illinois Gaming Board
3        that transfer of the license is in the best interests
4        of Illinois gaming;
5            (D) the death of an owner of the equity interest in
6        a licensee;
7            (E) the acquisition of a controlling interest in
8        the stock or substantially all of the assets of a
9        publicly traded company;
10            (F) a transfer by a parent company to a wholly
11        owned subsidiary; or
12            (G) the transfer or sale to or by one person to
13        another person where both persons were initial owners
14        of the license when the license was issued; or
15        (2) the controlling interest in the electronic gaming
16    license, organization license, or race track property is
17    transferred in a transaction to lineal descendants in which
18    no gain or loss is recognized or as a result of a
19    transaction in accordance with Section 351 of the Internal
20    Revenue Code in which no gain or loss is recognized; or
21        (3) live horse racing was not conducted in 2011 under a
22    license issued pursuant to the Illinois Horse Racing Act of
23    1975.
24    The transfer of an electronic gaming license, organization
25license, or race track property by a person other than the
26initial licensee to receive the electronic gaming license is

 

 

SB0007- 103 -LRB100 06307 AMC 16345 b

1not subject to a surcharge. The Department shall adopt rules
2necessary to implement and administer this subsection.
3    (c) Personal Property Tax Replacement Income Tax.
4Beginning on July 1, 1979 and thereafter, in addition to such
5income tax, there is also hereby imposed the Personal Property
6Tax Replacement Income Tax measured by net income on every
7corporation (including Subchapter S corporations), partnership
8and trust, for each taxable year ending after June 30, 1979.
9Such taxes are imposed on the privilege of earning or receiving
10income in or as a resident of this State. The Personal Property
11Tax Replacement Income Tax shall be in addition to the income
12tax imposed by subsections (a) and (b) of this Section and in
13addition to all other occupation or privilege taxes imposed by
14this State or by any municipal corporation or political
15subdivision thereof.
16    (d) Additional Personal Property Tax Replacement Income
17Tax Rates. The personal property tax replacement income tax
18imposed by this subsection and subsection (c) of this Section
19in the case of a corporation, other than a Subchapter S
20corporation and except as adjusted by subsection (d-1), shall
21be an additional amount equal to 2.85% of such taxpayer's net
22income for the taxable year, except that beginning on January
231, 1981, and thereafter, the rate of 2.85% specified in this
24subsection shall be reduced to 2.5%, and in the case of a
25partnership, trust or a Subchapter S corporation shall be an
26additional amount equal to 1.5% of such taxpayer's net income

 

 

SB0007- 104 -LRB100 06307 AMC 16345 b

1for the taxable year.
2    (d-1) Rate reduction for certain foreign insurers. In the
3case of a foreign insurer, as defined by Section 35A-5 of the
4Illinois Insurance Code, whose state or country of domicile
5imposes on insurers domiciled in Illinois a retaliatory tax
6(excluding any insurer whose premiums from reinsurance assumed
7are 50% or more of its total insurance premiums as determined
8under paragraph (2) of subsection (b) of Section 304, except
9that for purposes of this determination premiums from
10reinsurance do not include premiums from inter-affiliate
11reinsurance arrangements), beginning with taxable years ending
12on or after December 31, 1999, the sum of the rates of tax
13imposed by subsections (b) and (d) shall be reduced (but not
14increased) to the rate at which the total amount of tax imposed
15under this Act, net of all credits allowed under this Act,
16shall equal (i) the total amount of tax that would be imposed
17on the foreign insurer's net income allocable to Illinois for
18the taxable year by such foreign insurer's state or country of
19domicile if that net income were subject to all income taxes
20and taxes measured by net income imposed by such foreign
21insurer's state or country of domicile, net of all credits
22allowed or (ii) a rate of zero if no such tax is imposed on such
23income by the foreign insurer's state of domicile. For the
24purposes of this subsection (d-1), an inter-affiliate includes
25a mutual insurer under common management.
26        (1) For the purposes of subsection (d-1), in no event

 

 

SB0007- 105 -LRB100 06307 AMC 16345 b

1    shall the sum of the rates of tax imposed by subsections
2    (b) and (d) be reduced below the rate at which the sum of:
3            (A) the total amount of tax imposed on such foreign
4        insurer under this Act for a taxable year, net of all
5        credits allowed under this Act, plus
6            (B) the privilege tax imposed by Section 409 of the
7        Illinois Insurance Code, the fire insurance company
8        tax imposed by Section 12 of the Fire Investigation
9        Act, and the fire department taxes imposed under
10        Section 11-10-1 of the Illinois Municipal Code,
11    equals 1.25% for taxable years ending prior to December 31,
12    2003, or 1.75% for taxable years ending on or after
13    December 31, 2003, of the net taxable premiums written for
14    the taxable year, as described by subsection (1) of Section
15    409 of the Illinois Insurance Code. This paragraph will in
16    no event increase the rates imposed under subsections (b)
17    and (d).
18        (2) Any reduction in the rates of tax imposed by this
19    subsection shall be applied first against the rates imposed
20    by subsection (b) and only after the tax imposed by
21    subsection (a) net of all credits allowed under this
22    Section other than the credit allowed under subsection (i)
23    has been reduced to zero, against the rates imposed by
24    subsection (d).
25    This subsection (d-1) is exempt from the provisions of
26Section 250.

 

 

SB0007- 106 -LRB100 06307 AMC 16345 b

1    (e) Investment credit. A taxpayer shall be allowed a credit
2against the Personal Property Tax Replacement Income Tax for
3investment in qualified property.
4        (1) A taxpayer shall be allowed a credit equal to .5%
5    of the basis of qualified property placed in service during
6    the taxable year, provided such property is placed in
7    service on or after July 1, 1984. There shall be allowed an
8    additional credit equal to .5% of the basis of qualified
9    property placed in service during the taxable year,
10    provided such property is placed in service on or after
11    July 1, 1986, and the taxpayer's base employment within
12    Illinois has increased by 1% or more over the preceding
13    year as determined by the taxpayer's employment records
14    filed with the Illinois Department of Employment Security.
15    Taxpayers who are new to Illinois shall be deemed to have
16    met the 1% growth in base employment for the first year in
17    which they file employment records with the Illinois
18    Department of Employment Security. The provisions added to
19    this Section by Public Act 85-1200 (and restored by Public
20    Act 87-895) shall be construed as declaratory of existing
21    law and not as a new enactment. If, in any year, the
22    increase in base employment within Illinois over the
23    preceding year is less than 1%, the additional credit shall
24    be limited to that percentage times a fraction, the
25    numerator of which is .5% and the denominator of which is
26    1%, but shall not exceed .5%. The investment credit shall

 

 

SB0007- 107 -LRB100 06307 AMC 16345 b

1    not be allowed to the extent that it would reduce a
2    taxpayer's liability in any tax year below zero, nor may
3    any credit for qualified property be allowed for any year
4    other than the year in which the property was placed in
5    service in Illinois. For tax years ending on or after
6    December 31, 1987, and on or before December 31, 1988, the
7    credit shall be allowed for the tax year in which the
8    property is placed in service, or, if the amount of the
9    credit exceeds the tax liability for that year, whether it
10    exceeds the original liability or the liability as later
11    amended, such excess may be carried forward and applied to
12    the tax liability of the 5 taxable years following the
13    excess credit years if the taxpayer (i) makes investments
14    which cause the creation of a minimum of 2,000 full-time
15    equivalent jobs in Illinois, (ii) is located in an
16    enterprise zone established pursuant to the Illinois
17    Enterprise Zone Act and (iii) is certified by the
18    Department of Commerce and Community Affairs (now
19    Department of Commerce and Economic Opportunity) as
20    complying with the requirements specified in clause (i) and
21    (ii) by July 1, 1986. The Department of Commerce and
22    Community Affairs (now Department of Commerce and Economic
23    Opportunity) shall notify the Department of Revenue of all
24    such certifications immediately. For tax years ending
25    after December 31, 1988, the credit shall be allowed for
26    the tax year in which the property is placed in service,

 

 

SB0007- 108 -LRB100 06307 AMC 16345 b

1    or, if the amount of the credit exceeds the tax liability
2    for that year, whether it exceeds the original liability or
3    the liability as later amended, such excess may be carried
4    forward and applied to the tax liability of the 5 taxable
5    years following the excess credit years. The credit shall
6    be applied to the earliest year for which there is a
7    liability. If there is credit from more than one tax year
8    that is available to offset a liability, earlier credit
9    shall be applied first.
10        (2) The term "qualified property" means property
11    which:
12            (A) is tangible, whether new or used, including
13        buildings and structural components of buildings and
14        signs that are real property, but not including land or
15        improvements to real property that are not a structural
16        component of a building such as landscaping, sewer
17        lines, local access roads, fencing, parking lots, and
18        other appurtenances;
19            (B) is depreciable pursuant to Section 167 of the
20        Internal Revenue Code, except that "3-year property"
21        as defined in Section 168(c)(2)(A) of that Code is not
22        eligible for the credit provided by this subsection
23        (e);
24            (C) is acquired by purchase as defined in Section
25        179(d) of the Internal Revenue Code;
26            (D) is used in Illinois by a taxpayer who is

 

 

SB0007- 109 -LRB100 06307 AMC 16345 b

1        primarily engaged in manufacturing, or in mining coal
2        or fluorite, or in retailing, or was placed in service
3        on or after July 1, 2006 in a River Edge Redevelopment
4        Zone established pursuant to the River Edge
5        Redevelopment Zone Act; and
6            (E) has not previously been used in Illinois in
7        such a manner and by such a person as would qualify for
8        the credit provided by this subsection (e) or
9        subsection (f).
10        (3) For purposes of this subsection (e),
11    "manufacturing" means the material staging and production
12    of tangible personal property by procedures commonly
13    regarded as manufacturing, processing, fabrication, or
14    assembling which changes some existing material into new
15    shapes, new qualities, or new combinations. For purposes of
16    this subsection (e) the term "mining" shall have the same
17    meaning as the term "mining" in Section 613(c) of the
18    Internal Revenue Code. For purposes of this subsection (e),
19    the term "retailing" means the sale of tangible personal
20    property for use or consumption and not for resale, or
21    services rendered in conjunction with the sale of tangible
22    personal property for use or consumption and not for
23    resale. For purposes of this subsection (e), "tangible
24    personal property" has the same meaning as when that term
25    is used in the Retailers' Occupation Tax Act, and, for
26    taxable years ending after December 31, 2008, does not

 

 

SB0007- 110 -LRB100 06307 AMC 16345 b

1    include the generation, transmission, or distribution of
2    electricity.
3        (4) The basis of qualified property shall be the basis
4    used to compute the depreciation deduction for federal
5    income tax purposes.
6        (5) If the basis of the property for federal income tax
7    depreciation purposes is increased after it has been placed
8    in service in Illinois by the taxpayer, the amount of such
9    increase shall be deemed property placed in service on the
10    date of such increase in basis.
11        (6) The term "placed in service" shall have the same
12    meaning as under Section 46 of the Internal Revenue Code.
13        (7) If during any taxable year, any property ceases to
14    be qualified property in the hands of the taxpayer within
15    48 months after being placed in service, or the situs of
16    any qualified property is moved outside Illinois within 48
17    months after being placed in service, the Personal Property
18    Tax Replacement Income Tax for such taxable year shall be
19    increased. Such increase shall be determined by (i)
20    recomputing the investment credit which would have been
21    allowed for the year in which credit for such property was
22    originally allowed by eliminating such property from such
23    computation and, (ii) subtracting such recomputed credit
24    from the amount of credit previously allowed. For the
25    purposes of this paragraph (7), a reduction of the basis of
26    qualified property resulting from a redetermination of the

 

 

SB0007- 111 -LRB100 06307 AMC 16345 b

1    purchase price shall be deemed a disposition of qualified
2    property to the extent of such reduction.
3        (8) Unless the investment credit is extended by law,
4    the basis of qualified property shall not include costs
5    incurred after December 31, 2018, except for costs incurred
6    pursuant to a binding contract entered into on or before
7    December 31, 2018.
8        (9) Each taxable year ending before December 31, 2000,
9    a partnership may elect to pass through to its partners the
10    credits to which the partnership is entitled under this
11    subsection (e) for the taxable year. A partner may use the
12    credit allocated to him or her under this paragraph only
13    against the tax imposed in subsections (c) and (d) of this
14    Section. If the partnership makes that election, those
15    credits shall be allocated among the partners in the
16    partnership in accordance with the rules set forth in
17    Section 704(b) of the Internal Revenue Code, and the rules
18    promulgated under that Section, and the allocated amount of
19    the credits shall be allowed to the partners for that
20    taxable year. The partnership shall make this election on
21    its Personal Property Tax Replacement Income Tax return for
22    that taxable year. The election to pass through the credits
23    shall be irrevocable.
24        For taxable years ending on or after December 31, 2000,
25    a partner that qualifies its partnership for a subtraction
26    under subparagraph (I) of paragraph (2) of subsection (d)

 

 

SB0007- 112 -LRB100 06307 AMC 16345 b

1    of Section 203 or a shareholder that qualifies a Subchapter
2    S corporation for a subtraction under subparagraph (S) of
3    paragraph (2) of subsection (b) of Section 203 shall be
4    allowed a credit under this subsection (e) equal to its
5    share of the credit earned under this subsection (e) during
6    the taxable year by the partnership or Subchapter S
7    corporation, determined in accordance with the
8    determination of income and distributive share of income
9    under Sections 702 and 704 and Subchapter S of the Internal
10    Revenue Code. This paragraph is exempt from the provisions
11    of Section 250.
12    (f) Investment credit; Enterprise Zone; River Edge
13Redevelopment Zone.
14        (1) A taxpayer shall be allowed a credit against the
15    tax imposed by subsections (a) and (b) of this Section for
16    investment in qualified property which is placed in service
17    in an Enterprise Zone created pursuant to the Illinois
18    Enterprise Zone Act or, for property placed in service on
19    or after July 1, 2006, a River Edge Redevelopment Zone
20    established pursuant to the River Edge Redevelopment Zone
21    Act. For partners, shareholders of Subchapter S
22    corporations, and owners of limited liability companies,
23    if the liability company is treated as a partnership for
24    purposes of federal and State income taxation, there shall
25    be allowed a credit under this subsection (f) to be
26    determined in accordance with the determination of income

 

 

SB0007- 113 -LRB100 06307 AMC 16345 b

1    and distributive share of income under Sections 702 and 704
2    and Subchapter S of the Internal Revenue Code. The credit
3    shall be .5% of the basis for such property. The credit
4    shall be available only in the taxable year in which the
5    property is placed in service in the Enterprise Zone or
6    River Edge Redevelopment Zone and shall not be allowed to
7    the extent that it would reduce a taxpayer's liability for
8    the tax imposed by subsections (a) and (b) of this Section
9    to below zero. For tax years ending on or after December
10    31, 1985, the credit shall be allowed for the tax year in
11    which the property is placed in service, or, if the amount
12    of the credit exceeds the tax liability for that year,
13    whether it exceeds the original liability or the liability
14    as later amended, such excess may be carried forward and
15    applied to the tax liability of the 5 taxable years
16    following the excess credit year. The credit shall be
17    applied to the earliest year for which there is a
18    liability. If there is credit from more than one tax year
19    that is available to offset a liability, the credit
20    accruing first in time shall be applied first.
21        (2) The term qualified property means property which:
22            (A) is tangible, whether new or used, including
23        buildings and structural components of buildings;
24            (B) is depreciable pursuant to Section 167 of the
25        Internal Revenue Code, except that "3-year property"
26        as defined in Section 168(c)(2)(A) of that Code is not

 

 

SB0007- 114 -LRB100 06307 AMC 16345 b

1        eligible for the credit provided by this subsection
2        (f);
3            (C) is acquired by purchase as defined in Section
4        179(d) of the Internal Revenue Code;
5            (D) is used in the Enterprise Zone or River Edge
6        Redevelopment Zone by the taxpayer; and
7            (E) has not been previously used in Illinois in
8        such a manner and by such a person as would qualify for
9        the credit provided by this subsection (f) or
10        subsection (e).
11        (3) The basis of qualified property shall be the basis
12    used to compute the depreciation deduction for federal
13    income tax purposes.
14        (4) If the basis of the property for federal income tax
15    depreciation purposes is increased after it has been placed
16    in service in the Enterprise Zone or River Edge
17    Redevelopment Zone by the taxpayer, the amount of such
18    increase shall be deemed property placed in service on the
19    date of such increase in basis.
20        (5) The term "placed in service" shall have the same
21    meaning as under Section 46 of the Internal Revenue Code.
22        (6) If during any taxable year, any property ceases to
23    be qualified property in the hands of the taxpayer within
24    48 months after being placed in service, or the situs of
25    any qualified property is moved outside the Enterprise Zone
26    or River Edge Redevelopment Zone within 48 months after

 

 

SB0007- 115 -LRB100 06307 AMC 16345 b

1    being placed in service, the tax imposed under subsections
2    (a) and (b) of this Section for such taxable year shall be
3    increased. Such increase shall be determined by (i)
4    recomputing the investment credit which would have been
5    allowed for the year in which credit for such property was
6    originally allowed by eliminating such property from such
7    computation, and (ii) subtracting such recomputed credit
8    from the amount of credit previously allowed. For the
9    purposes of this paragraph (6), a reduction of the basis of
10    qualified property resulting from a redetermination of the
11    purchase price shall be deemed a disposition of qualified
12    property to the extent of such reduction.
13        (7) There shall be allowed an additional credit equal
14    to 0.5% of the basis of qualified property placed in
15    service during the taxable year in a River Edge
16    Redevelopment Zone, provided such property is placed in
17    service on or after July 1, 2006, and the taxpayer's base
18    employment within Illinois has increased by 1% or more over
19    the preceding year as determined by the taxpayer's
20    employment records filed with the Illinois Department of
21    Employment Security. Taxpayers who are new to Illinois
22    shall be deemed to have met the 1% growth in base
23    employment for the first year in which they file employment
24    records with the Illinois Department of Employment
25    Security. If, in any year, the increase in base employment
26    within Illinois over the preceding year is less than 1%,

 

 

SB0007- 116 -LRB100 06307 AMC 16345 b

1    the additional credit shall be limited to that percentage
2    times a fraction, the numerator of which is 0.5% and the
3    denominator of which is 1%, but shall not exceed 0.5%.
4    (g) (Blank).
5    (h) Investment credit; High Impact Business.
6        (1) Subject to subsections (b) and (b-5) of Section 5.5
7    of the Illinois Enterprise Zone Act, a taxpayer shall be
8    allowed a credit against the tax imposed by subsections (a)
9    and (b) of this Section for investment in qualified
10    property which is placed in service by a Department of
11    Commerce and Economic Opportunity designated High Impact
12    Business. The credit shall be .5% of the basis for such
13    property. The credit shall not be available (i) until the
14    minimum investments in qualified property set forth in
15    subdivision (a)(3)(A) of Section 5.5 of the Illinois
16    Enterprise Zone Act have been satisfied or (ii) until the
17    time authorized in subsection (b-5) of the Illinois
18    Enterprise Zone Act for entities designated as High Impact
19    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
20    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
21    Act, and shall not be allowed to the extent that it would
22    reduce a taxpayer's liability for the tax imposed by
23    subsections (a) and (b) of this Section to below zero. The
24    credit applicable to such investments shall be taken in the
25    taxable year in which such investments have been completed.
26    The credit for additional investments beyond the minimum

 

 

SB0007- 117 -LRB100 06307 AMC 16345 b

1    investment by a designated high impact business authorized
2    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
3    Enterprise Zone Act shall be available only in the taxable
4    year in which the property is placed in service and shall
5    not be allowed to the extent that it would reduce a
6    taxpayer's liability for the tax imposed by subsections (a)
7    and (b) of this Section to below zero. For tax years ending
8    on or after December 31, 1987, the credit shall be allowed
9    for the tax year in which the property is placed in
10    service, or, if the amount of the credit exceeds the tax
11    liability for that year, whether it exceeds the original
12    liability or the liability as later amended, such excess
13    may be carried forward and applied to the tax liability of
14    the 5 taxable years following the excess credit year. The
15    credit shall be applied to the earliest year for which
16    there is a liability. If there is credit from more than one
17    tax year that is available to offset a liability, the
18    credit accruing first in time shall be applied first.
19        Changes made in this subdivision (h)(1) by Public Act
20    88-670 restore changes made by Public Act 85-1182 and
21    reflect existing law.
22        (2) The term qualified property means property which:
23            (A) is tangible, whether new or used, including
24        buildings and structural components of buildings;
25            (B) is depreciable pursuant to Section 167 of the
26        Internal Revenue Code, except that "3-year property"

 

 

SB0007- 118 -LRB100 06307 AMC 16345 b

1        as defined in Section 168(c)(2)(A) of that Code is not
2        eligible for the credit provided by this subsection
3        (h);
4            (C) is acquired by purchase as defined in Section
5        179(d) of the Internal Revenue Code; and
6            (D) is not eligible for the Enterprise Zone
7        Investment Credit provided by subsection (f) of this
8        Section.
9        (3) The basis of qualified property shall be the basis
10    used to compute the depreciation deduction for federal
11    income tax purposes.
12        (4) If the basis of the property for federal income tax
13    depreciation purposes is increased after it has been placed
14    in service in a federally designated Foreign Trade Zone or
15    Sub-Zone located in Illinois by the taxpayer, the amount of
16    such increase shall be deemed property placed in service on
17    the date of such increase in basis.
18        (5) The term "placed in service" shall have the same
19    meaning as under Section 46 of the Internal Revenue Code.
20        (6) If during any taxable year ending on or before
21    December 31, 1996, any property ceases to be qualified
22    property in the hands of the taxpayer within 48 months
23    after being placed in service, or the situs of any
24    qualified property is moved outside Illinois within 48
25    months after being placed in service, the tax imposed under
26    subsections (a) and (b) of this Section for such taxable

 

 

SB0007- 119 -LRB100 06307 AMC 16345 b

1    year shall be increased. Such increase shall be determined
2    by (i) recomputing the investment credit which would have
3    been allowed for the year in which credit for such property
4    was originally allowed by eliminating such property from
5    such computation, and (ii) subtracting such recomputed
6    credit from the amount of credit previously allowed. For
7    the purposes of this paragraph (6), a reduction of the
8    basis of qualified property resulting from a
9    redetermination of the purchase price shall be deemed a
10    disposition of qualified property to the extent of such
11    reduction.
12        (7) Beginning with tax years ending after December 31,
13    1996, if a taxpayer qualifies for the credit under this
14    subsection (h) and thereby is granted a tax abatement and
15    the taxpayer relocates its entire facility in violation of
16    the explicit terms and length of the contract under Section
17    18-183 of the Property Tax Code, the tax imposed under
18    subsections (a) and (b) of this Section shall be increased
19    for the taxable year in which the taxpayer relocated its
20    facility by an amount equal to the amount of credit
21    received by the taxpayer under this subsection (h).
22    (i) Credit for Personal Property Tax Replacement Income
23Tax. For tax years ending prior to December 31, 2003, a credit
24shall be allowed against the tax imposed by subsections (a) and
25(b) of this Section for the tax imposed by subsections (c) and
26(d) of this Section. This credit shall be computed by

 

 

SB0007- 120 -LRB100 06307 AMC 16345 b

1multiplying the tax imposed by subsections (c) and (d) of this
2Section by a fraction, the numerator of which is base income
3allocable to Illinois and the denominator of which is Illinois
4base income, and further multiplying the product by the tax
5rate imposed by subsections (a) and (b) of this Section.
6    Any credit earned on or after December 31, 1986 under this
7subsection which is unused in the year the credit is computed
8because it exceeds the tax liability imposed by subsections (a)
9and (b) for that year (whether it exceeds the original
10liability or the liability as later amended) may be carried
11forward and applied to the tax liability imposed by subsections
12(a) and (b) of the 5 taxable years following the excess credit
13year, provided that no credit may be carried forward to any
14year ending on or after December 31, 2003. This credit shall be
15applied first to the earliest year for which there is a
16liability. If there is a credit under this subsection from more
17than one tax year that is available to offset a liability the
18earliest credit arising under this subsection shall be applied
19first.
20    If, during any taxable year ending on or after December 31,
211986, the tax imposed by subsections (c) and (d) of this
22Section for which a taxpayer has claimed a credit under this
23subsection (i) is reduced, the amount of credit for such tax
24shall also be reduced. Such reduction shall be determined by
25recomputing the credit to take into account the reduced tax
26imposed by subsections (c) and (d). If any portion of the

 

 

SB0007- 121 -LRB100 06307 AMC 16345 b

1reduced amount of credit has been carried to a different
2taxable year, an amended return shall be filed for such taxable
3year to reduce the amount of credit claimed.
4    (j) Training expense credit. Beginning with tax years
5ending on or after December 31, 1986 and prior to December 31,
62003, a taxpayer shall be allowed a credit against the tax
7imposed by subsections (a) and (b) under this Section for all
8amounts paid or accrued, on behalf of all persons employed by
9the taxpayer in Illinois or Illinois residents employed outside
10of Illinois by a taxpayer, for educational or vocational
11training in semi-technical or technical fields or semi-skilled
12or skilled fields, which were deducted from gross income in the
13computation of taxable income. The credit against the tax
14imposed by subsections (a) and (b) shall be 1.6% of such
15training expenses. For partners, shareholders of subchapter S
16corporations, and owners of limited liability companies, if the
17liability company is treated as a partnership for purposes of
18federal and State income taxation, there shall be allowed a
19credit under this subsection (j) to be determined in accordance
20with the determination of income and distributive share of
21income under Sections 702 and 704 and subchapter S of the
22Internal Revenue Code.
23    Any credit allowed under this subsection which is unused in
24the year the credit is earned may be carried forward to each of
25the 5 taxable years following the year for which the credit is
26first computed until it is used. This credit shall be applied

 

 

SB0007- 122 -LRB100 06307 AMC 16345 b

1first to the earliest year for which there is a liability. If
2there is a credit under this subsection from more than one tax
3year that is available to offset a liability the earliest
4credit arising under this subsection shall be applied first. No
5carryforward credit may be claimed in any tax year ending on or
6after December 31, 2003.
7    (k) Research and development credit. For tax years ending
8after July 1, 1990 and prior to December 31, 2003, and
9beginning again for tax years ending on or after December 31,
102004, and ending prior to January 1, 2016, a taxpayer shall be
11allowed a credit against the tax imposed by subsections (a) and
12(b) of this Section for increasing research activities in this
13State. The credit allowed against the tax imposed by
14subsections (a) and (b) shall be equal to 6 1/2% of the
15qualifying expenditures for increasing research activities in
16this State. For partners, shareholders of subchapter S
17corporations, and owners of limited liability companies, if the
18liability company is treated as a partnership for purposes of
19federal and State income taxation, there shall be allowed a
20credit under this subsection to be determined in accordance
21with the determination of income and distributive share of
22income under Sections 702 and 704 and subchapter S of the
23Internal Revenue Code.
24    For purposes of this subsection, "qualifying expenditures"
25means the qualifying expenditures as defined for the federal
26credit for increasing research activities which would be

 

 

SB0007- 123 -LRB100 06307 AMC 16345 b

1allowable under Section 41 of the Internal Revenue Code and
2which are conducted in this State, "qualifying expenditures for
3increasing research activities in this State" means the excess
4of qualifying expenditures for the taxable year in which
5incurred over qualifying expenditures for the base period,
6"qualifying expenditures for the base period" means the average
7of the qualifying expenditures for each year in the base
8period, and "base period" means the 3 taxable years immediately
9preceding the taxable year for which the determination is being
10made.
11    Any credit in excess of the tax liability for the taxable
12year may be carried forward. A taxpayer may elect to have the
13unused credit shown on its final completed return carried over
14as a credit against the tax liability for the following 5
15taxable years or until it has been fully used, whichever occurs
16first; provided that no credit earned in a tax year ending
17prior to December 31, 2003 may be carried forward to any year
18ending on or after December 31, 2003.
19    If an unused credit is carried forward to a given year from
202 or more earlier years, that credit arising in the earliest
21year will be applied first against the tax liability for the
22given year. If a tax liability for the given year still
23remains, the credit from the next earliest year will then be
24applied, and so on, until all credits have been used or no tax
25liability for the given year remains. Any remaining unused
26credit or credits then will be carried forward to the next

 

 

SB0007- 124 -LRB100 06307 AMC 16345 b

1following year in which a tax liability is incurred, except
2that no credit can be carried forward to a year which is more
3than 5 years after the year in which the expense for which the
4credit is given was incurred.
5    No inference shall be drawn from this amendatory Act of the
691st General Assembly in construing this Section for taxable
7years beginning before January 1, 1999.
8    (l) Environmental Remediation Tax Credit.
9        (i) For tax years ending after December 31, 1997 and on
10    or before December 31, 2001, a taxpayer shall be allowed a
11    credit against the tax imposed by subsections (a) and (b)
12    of this Section for certain amounts paid for unreimbursed
13    eligible remediation costs, as specified in this
14    subsection. For purposes of this Section, "unreimbursed
15    eligible remediation costs" means costs approved by the
16    Illinois Environmental Protection Agency ("Agency") under
17    Section 58.14 of the Environmental Protection Act that were
18    paid in performing environmental remediation at a site for
19    which a No Further Remediation Letter was issued by the
20    Agency and recorded under Section 58.10 of the
21    Environmental Protection Act. The credit must be claimed
22    for the taxable year in which Agency approval of the
23    eligible remediation costs is granted. The credit is not
24    available to any taxpayer if the taxpayer or any related
25    party caused or contributed to, in any material respect, a
26    release of regulated substances on, in, or under the site

 

 

SB0007- 125 -LRB100 06307 AMC 16345 b

1    that was identified and addressed by the remedial action
2    pursuant to the Site Remediation Program of the
3    Environmental Protection Act. After the Pollution Control
4    Board rules are adopted pursuant to the Illinois
5    Administrative Procedure Act for the administration and
6    enforcement of Section 58.9 of the Environmental
7    Protection Act, determinations as to credit availability
8    for purposes of this Section shall be made consistent with
9    those rules. For purposes of this Section, "taxpayer"
10    includes a person whose tax attributes the taxpayer has
11    succeeded to under Section 381 of the Internal Revenue Code
12    and "related party" includes the persons disallowed a
13    deduction for losses by paragraphs (b), (c), and (f)(1) of
14    Section 267 of the Internal Revenue Code by virtue of being
15    a related taxpayer, as well as any of its partners. The
16    credit allowed against the tax imposed by subsections (a)
17    and (b) shall be equal to 25% of the unreimbursed eligible
18    remediation costs in excess of $100,000 per site, except
19    that the $100,000 threshold shall not apply to any site
20    contained in an enterprise zone as determined by the
21    Department of Commerce and Community Affairs (now
22    Department of Commerce and Economic Opportunity). The
23    total credit allowed shall not exceed $40,000 per year with
24    a maximum total of $150,000 per site. For partners and
25    shareholders of subchapter S corporations, there shall be
26    allowed a credit under this subsection to be determined in

 

 

SB0007- 126 -LRB100 06307 AMC 16345 b

1    accordance with the determination of income and
2    distributive share of income under Sections 702 and 704 and
3    subchapter S of the Internal Revenue Code.
4        (ii) A credit allowed under this subsection that is
5    unused in the year the credit is earned may be carried
6    forward to each of the 5 taxable years following the year
7    for which the credit is first earned until it is used. The
8    term "unused credit" does not include any amounts of
9    unreimbursed eligible remediation costs in excess of the
10    maximum credit per site authorized under paragraph (i).
11    This credit shall be applied first to the earliest year for
12    which there is a liability. If there is a credit under this
13    subsection from more than one tax year that is available to
14    offset a liability, the earliest credit arising under this
15    subsection shall be applied first. A credit allowed under
16    this subsection may be sold to a buyer as part of a sale of
17    all or part of the remediation site for which the credit
18    was granted. The purchaser of a remediation site and the
19    tax credit shall succeed to the unused credit and remaining
20    carry-forward period of the seller. To perfect the
21    transfer, the assignor shall record the transfer in the
22    chain of title for the site and provide written notice to
23    the Director of the Illinois Department of Revenue of the
24    assignor's intent to sell the remediation site and the
25    amount of the tax credit to be transferred as a portion of
26    the sale. In no event may a credit be transferred to any

 

 

SB0007- 127 -LRB100 06307 AMC 16345 b

1    taxpayer if the taxpayer or a related party would not be
2    eligible under the provisions of subsection (i).
3        (iii) For purposes of this Section, the term "site"
4    shall have the same meaning as under Section 58.2 of the
5    Environmental Protection Act.
6    (m) Education expense credit. Beginning with tax years
7ending after December 31, 1999, a taxpayer who is the custodian
8of one or more qualifying pupils shall be allowed a credit
9against the tax imposed by subsections (a) and (b) of this
10Section for qualified education expenses incurred on behalf of
11the qualifying pupils. The credit shall be equal to 25% of
12qualified education expenses, but in no event may the total
13credit under this subsection claimed by a family that is the
14custodian of qualifying pupils exceed $500. In no event shall a
15credit under this subsection reduce the taxpayer's liability
16under this Act to less than zero. This subsection is exempt
17from the provisions of Section 250 of this Act.
18    For purposes of this subsection:
19    "Qualifying pupils" means individuals who (i) are
20residents of the State of Illinois, (ii) are under the age of
2121 at the close of the school year for which a credit is
22sought, and (iii) during the school year for which a credit is
23sought were full-time pupils enrolled in a kindergarten through
24twelfth grade education program at any school, as defined in
25this subsection.
26    "Qualified education expense" means the amount incurred on

 

 

SB0007- 128 -LRB100 06307 AMC 16345 b

1behalf of a qualifying pupil in excess of $250 for tuition,
2book fees, and lab fees at the school in which the pupil is
3enrolled during the regular school year.
4    "School" means any public or nonpublic elementary or
5secondary school in Illinois that is in compliance with Title
6VI of the Civil Rights Act of 1964 and attendance at which
7satisfies the requirements of Section 26-1 of the School Code,
8except that nothing shall be construed to require a child to
9attend any particular public or nonpublic school to qualify for
10the credit under this Section.
11    "Custodian" means, with respect to qualifying pupils, an
12Illinois resident who is a parent, the parents, a legal
13guardian, or the legal guardians of the qualifying pupils.
14    (n) River Edge Redevelopment Zone site remediation tax
15credit.
16        (i) For tax years ending on or after December 31, 2006,
17    a taxpayer shall be allowed a credit against the tax
18    imposed by subsections (a) and (b) of this Section for
19    certain amounts paid for unreimbursed eligible remediation
20    costs, as specified in this subsection. For purposes of
21    this Section, "unreimbursed eligible remediation costs"
22    means costs approved by the Illinois Environmental
23    Protection Agency ("Agency") under Section 58.14a of the
24    Environmental Protection Act that were paid in performing
25    environmental remediation at a site within a River Edge
26    Redevelopment Zone for which a No Further Remediation

 

 

SB0007- 129 -LRB100 06307 AMC 16345 b

1    Letter was issued by the Agency and recorded under Section
2    58.10 of the Environmental Protection Act. The credit must
3    be claimed for the taxable year in which Agency approval of
4    the eligible remediation costs is granted. The credit is
5    not available to any taxpayer if the taxpayer or any
6    related party caused or contributed to, in any material
7    respect, a release of regulated substances on, in, or under
8    the site that was identified and addressed by the remedial
9    action pursuant to the Site Remediation Program of the
10    Environmental Protection Act. Determinations as to credit
11    availability for purposes of this Section shall be made
12    consistent with rules adopted by the Pollution Control
13    Board pursuant to the Illinois Administrative Procedure
14    Act for the administration and enforcement of Section 58.9
15    of the Environmental Protection Act. For purposes of this
16    Section, "taxpayer" includes a person whose tax attributes
17    the taxpayer has succeeded to under Section 381 of the
18    Internal Revenue Code and "related party" includes the
19    persons disallowed a deduction for losses by paragraphs
20    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
21    Code by virtue of being a related taxpayer, as well as any
22    of its partners. The credit allowed against the tax imposed
23    by subsections (a) and (b) shall be equal to 25% of the
24    unreimbursed eligible remediation costs in excess of
25    $100,000 per site.
26        (ii) A credit allowed under this subsection that is

 

 

SB0007- 130 -LRB100 06307 AMC 16345 b

1    unused in the year the credit is earned may be carried
2    forward to each of the 5 taxable years following the year
3    for which the credit is first earned until it is used. This
4    credit shall be applied first to the earliest year for
5    which there is a liability. If there is a credit under this
6    subsection from more than one tax year that is available to
7    offset a liability, the earliest credit arising under this
8    subsection shall be applied first. A credit allowed under
9    this subsection may be sold to a buyer as part of a sale of
10    all or part of the remediation site for which the credit
11    was granted. The purchaser of a remediation site and the
12    tax credit shall succeed to the unused credit and remaining
13    carry-forward period of the seller. To perfect the
14    transfer, the assignor shall record the transfer in the
15    chain of title for the site and provide written notice to
16    the Director of the Illinois Department of Revenue of the
17    assignor's intent to sell the remediation site and the
18    amount of the tax credit to be transferred as a portion of
19    the sale. In no event may a credit be transferred to any
20    taxpayer if the taxpayer or a related party would not be
21    eligible under the provisions of subsection (i).
22        (iii) For purposes of this Section, the term "site"
23    shall have the same meaning as under Section 58.2 of the
24    Environmental Protection Act.
25    (o) For each of taxable years during the Compassionate Use
26of Medical Cannabis Pilot Program, a surcharge is imposed on

 

 

SB0007- 131 -LRB100 06307 AMC 16345 b

1all taxpayers on income arising from the sale or exchange of
2capital assets, depreciable business property, real property
3used in the trade or business, and Section 197 intangibles of
4an organization registrant under the Compassionate Use of
5Medical Cannabis Pilot Program Act. The amount of the surcharge
6is equal to the amount of federal income tax liability for the
7taxable year attributable to those sales and exchanges. The
8surcharge imposed does not apply if:
9        (1) the medical cannabis cultivation center
10    registration, medical cannabis dispensary registration, or
11    the property of a registration is transferred as a result
12    of any of the following:
13            (A) bankruptcy, a receivership, or a debt
14        adjustment initiated by or against the initial
15        registration or the substantial owners of the initial
16        registration;
17            (B) cancellation, revocation, or termination of
18        any registration by the Illinois Department of Public
19        Health;
20            (C) a determination by the Illinois Department of
21        Public Health that transfer of the registration is in
22        the best interests of Illinois qualifying patients as
23        defined by the Compassionate Use of Medical Cannabis
24        Pilot Program Act;
25            (D) the death of an owner of the equity interest in
26        a registrant;

 

 

SB0007- 132 -LRB100 06307 AMC 16345 b

1            (E) the acquisition of a controlling interest in
2        the stock or substantially all of the assets of a
3        publicly traded company;
4            (F) a transfer by a parent company to a wholly
5        owned subsidiary; or
6            (G) the transfer or sale to or by one person to
7        another person where both persons were initial owners
8        of the registration when the registration was issued;
9        or
10        (2) the cannabis cultivation center registration,
11    medical cannabis dispensary registration, or the
12    controlling interest in a registrant's property is
13    transferred in a transaction to lineal descendants in which
14    no gain or loss is recognized or as a result of a
15    transaction in accordance with Section 351 of the Internal
16    Revenue Code in which no gain or loss is recognized.
17(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
18eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
19eff. 7-16-14.)
 
20    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)
21    Sec. 303. (a) In general. Any item of capital gain or loss,
22and any item of income from rents or royalties from real or
23tangible personal property, interest, dividends, and patent or
24copyright royalties, and prizes awarded under the Illinois
25Lottery Law, and, for taxable years ending on or after December

 

 

SB0007- 133 -LRB100 06307 AMC 16345 b

131, 2017, wagering and gambling winnings from Illinois sources
2as set forth in subsection (e-1) of this Section, to the extent
3such item constitutes nonbusiness income, together with any
4item of deduction directly allocable thereto, shall be
5allocated by any person other than a resident as provided in
6this Section.
7    (b) Capital gains and losses.
8        (1) Real property. Capital gains and losses from sales
9    or exchanges of real property are allocable to this State
10    if the property is located in this State.
11        (2) Tangible personal property. Capital gains and
12    losses from sales or exchanges of tangible personal
13    property are allocable to this State if, at the time of
14    such sale or exchange:
15            (A) The property had its situs in this State; or
16            (B) The taxpayer had its commercial domicile in
17        this State and was not taxable in the state in which
18        the property had its situs.
19        (3) Intangibles. Capital gains and losses from sales or
20    exchanges of intangible personal property are allocable to
21    this State if the taxpayer had its commercial domicile in
22    this State at the time of such sale or exchange.
23    (c) Rents and royalties.
24        (1) Real property. Rents and royalties from real
25    property are allocable to this State if the property is
26    located in this State.

 

 

SB0007- 134 -LRB100 06307 AMC 16345 b

1        (2) Tangible personal property. Rents and royalties
2    from tangible personal property are allocable to this
3    State:
4            (A) If and to the extent that the property is
5        utilized in this State; or
6            (B) In their entirety if, at the time such rents or
7        royalties were paid or accrued, the taxpayer had its
8        commercial domicile in this State and was not organized
9        under the laws of or taxable with respect to such rents
10        or royalties in the state in which the property was
11        utilized. The extent of utilization of tangible
12        personal property in a state is determined by
13        multiplying the rents or royalties derived from such
14        property by a fraction, the numerator of which is the
15        number of days of physical location of the property in
16        the state during the rental or royalty period in the
17        taxable year and the denominator of which is the number
18        of days of physical location of the property everywhere
19        during all rental or royalty periods in the taxable
20        year. If the physical location of the property during
21        the rental or royalty period is unknown or
22        unascertainable by the taxpayer, tangible personal
23        property is utilized in the state in which the property
24        was located at the time the rental or royalty payer
25        obtained possession.
26    (d) Patent and copyright royalties.

 

 

SB0007- 135 -LRB100 06307 AMC 16345 b

1        (1) Allocation. Patent and copyright royalties are
2    allocable to this State:
3            (A) If and to the extent that the patent or
4        copyright is utilized by the payer in this State; or
5            (B) If and to the extent that the patent or
6        copyright is utilized by the payer in a state in which
7        the taxpayer is not taxable with respect to such
8        royalties and, at the time such royalties were paid or
9        accrued, the taxpayer had its commercial domicile in
10        this State.
11        (2) Utilization.
12            (A) A patent is utilized in a state to the extent
13        that it is employed in production, fabrication,
14        manufacturing or other processing in the state or to
15        the extent that a patented product is produced in the
16        state. If the basis of receipts from patent royalties
17        does not permit allocation to states or if the
18        accounting procedures do not reflect states of
19        utilization, the patent is utilized in this State if
20        the taxpayer has its commercial domicile in this State.
21            (B) A copyright is utilized in a state to the
22        extent that printing or other publication originates
23        in the state. If the basis of receipts from copyright
24        royalties does not permit allocation to states or if
25        the accounting procedures do not reflect states of
26        utilization, the copyright is utilized in this State if

 

 

SB0007- 136 -LRB100 06307 AMC 16345 b

1        the taxpayer has its commercial domicile in this State.
2    (e) Illinois lottery prizes. Prizes awarded under the
3Illinois Lottery Law are allocable to this State. Payments
4received in taxable years ending on or after December 31, 2013,
5from the assignment of a prize under Section 13.1 of the
6Illinois Lottery Law are allocable to this State.
7    (e-1) Wagering and gambling winnings. Payments received in
8taxable years ending on or after December 31, 2017 of winnings
9from pari-mutuel wagering conducted at a wagering facility
10licensed under the Illinois Horse Racing Act of 1975 and from
11gambling games conducted on a riverboat or in a casino or
12electronic gaming facility licensed under the Illinois
13Gambling Act are allocable to this State.
14    (e-5) Unemployment benefits. Unemployment benefits paid by
15the Illinois Department of Employment Security are allocable to
16this State.
17    (f) Taxability in other state. For purposes of allocation
18of income pursuant to this Section, a taxpayer is taxable in
19another state if:
20        (1) In that state he is subject to a net income tax, a
21    franchise tax measured by net income, a franchise tax for
22    the privilege of doing business, or a corporate stock tax;
23    or
24        (2) That state has jurisdiction to subject the taxpayer
25    to a net income tax regardless of whether, in fact, the
26    state does or does not.

 

 

SB0007- 137 -LRB100 06307 AMC 16345 b

1    (g) Cross references.
2        (1) For allocation of interest and dividends by persons
3    other than residents, see Section 301(c)(2).
4        (2) For allocation of nonbusiness income by residents,
5    see Section 301(a).
6(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
 
7    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
8    Sec. 304. Business income of persons other than residents.
9    (a) In general. The business income of a person other than
10a resident shall be allocated to this State if such person's
11business income is derived solely from this State. If a person
12other than a resident derives business income from this State
13and one or more other states, then, for tax years ending on or
14before December 30, 1998, and except as otherwise provided by
15this Section, such person's business income shall be
16apportioned to this State by multiplying the income by a
17fraction, the numerator of which is the sum of the property
18factor (if any), the payroll factor (if any) and 200% of the
19sales factor (if any), and the denominator of which is 4
20reduced by the number of factors other than the sales factor
21which have a denominator of zero and by an additional 2 if the
22sales factor has a denominator of zero. For tax years ending on
23or after December 31, 1998, and except as otherwise provided by
24this Section, persons other than residents who derive business
25income from this State and one or more other states shall

 

 

SB0007- 138 -LRB100 06307 AMC 16345 b

1compute their apportionment factor by weighting their
2property, payroll, and sales factors as provided in subsection
3(h) of this Section.
4    (1) Property factor.
5        (A) The property factor is a fraction, the numerator of
6    which is the average value of the person's real and
7    tangible personal property owned or rented and used in the
8    trade or business in this State during the taxable year and
9    the denominator of which is the average value of all the
10    person's real and tangible personal property owned or
11    rented and used in the trade or business during the taxable
12    year.
13        (B) Property owned by the person is valued at its
14    original cost. Property rented by the person is valued at 8
15    times the net annual rental rate. Net annual rental rate is
16    the annual rental rate paid by the person less any annual
17    rental rate received by the person from sub-rentals.
18        (C) The average value of property shall be determined
19    by averaging the values at the beginning and ending of the
20    taxable year but the Director may require the averaging of
21    monthly values during the taxable year if reasonably
22    required to reflect properly the average value of the
23    person's property.
24    (2) Payroll factor.
25        (A) The payroll factor is a fraction, the numerator of
26    which is the total amount paid in this State during the

 

 

SB0007- 139 -LRB100 06307 AMC 16345 b

1    taxable year by the person for compensation, and the
2    denominator of which is the total compensation paid
3    everywhere during the taxable year.
4        (B) Compensation is paid in this State if:
5            (i) The individual's service is performed entirely
6        within this State;
7            (ii) The individual's service is performed both
8        within and without this State, but the service
9        performed without this State is incidental to the
10        individual's service performed within this State; or
11            (iii) Some of the service is performed within this
12        State and either the base of operations, or if there is
13        no base of operations, the place from which the service
14        is directed or controlled is within this State, or the
15        base of operations or the place from which the service
16        is directed or controlled is not in any state in which
17        some part of the service is performed, but the
18        individual's residence is in this State.
19            (iv) Compensation paid to nonresident professional
20        athletes.
21            (a) General. The Illinois source income of a
22        nonresident individual who is a member of a
23        professional athletic team includes the portion of the
24        individual's total compensation for services performed
25        as a member of a professional athletic team during the
26        taxable year which the number of duty days spent within

 

 

SB0007- 140 -LRB100 06307 AMC 16345 b

1        this State performing services for the team in any
2        manner during the taxable year bears to the total
3        number of duty days spent both within and without this
4        State during the taxable year.
5            (b) Travel days. Travel days that do not involve
6        either a game, practice, team meeting, or other similar
7        team event are not considered duty days spent in this
8        State. However, such travel days are considered in the
9        total duty days spent both within and without this
10        State.
11            (c) Definitions. For purposes of this subpart
12        (iv):
13                (1) The term "professional athletic team"
14            includes, but is not limited to, any professional
15            baseball, basketball, football, soccer, or hockey
16            team.
17                (2) The term "member of a professional
18            athletic team" includes those employees who are
19            active players, players on the disabled list, and
20            any other persons required to travel and who travel
21            with and perform services on behalf of a
22            professional athletic team on a regular basis.
23            This includes, but is not limited to, coaches,
24            managers, and trainers.
25                (3) Except as provided in items (C) and (D) of
26            this subpart (3), the term "duty days" means all

 

 

SB0007- 141 -LRB100 06307 AMC 16345 b

1            days during the taxable year from the beginning of
2            the professional athletic team's official
3            pre-season training period through the last game
4            in which the team competes or is scheduled to
5            compete. Duty days shall be counted for the year in
6            which they occur, including where a team's
7            official pre-season training period through the
8            last game in which the team competes or is
9            scheduled to compete, occurs during more than one
10            tax year.
11                    (A) Duty days shall also include days on
12                which a member of a professional athletic team
13                performs service for a team on a date that does
14                not fall within the foregoing period (e.g.,
15                participation in instructional leagues, the
16                "All Star Game", or promotional "caravans").
17                Performing a service for a professional
18                athletic team includes conducting training and
19                rehabilitation activities, when such
20                activities are conducted at team facilities.
21                    (B) Also included in duty days are game
22                days, practice days, days spent at team
23                meetings, promotional caravans, preseason
24                training camps, and days served with the team
25                through all post-season games in which the team
26                competes or is scheduled to compete.

 

 

SB0007- 142 -LRB100 06307 AMC 16345 b

1                    (C) Duty days for any person who joins a
2                team during the period from the beginning of
3                the professional athletic team's official
4                pre-season training period through the last
5                game in which the team competes, or is
6                scheduled to compete, shall begin on the day
7                that person joins the team. Conversely, duty
8                days for any person who leaves a team during
9                this period shall end on the day that person
10                leaves the team. Where a person switches teams
11                during a taxable year, a separate duty-day
12                calculation shall be made for the period the
13                person was with each team.
14                    (D) Days for which a member of a
15                professional athletic team is not compensated
16                and is not performing services for the team in
17                any manner, including days when such member of
18                a professional athletic team has been
19                suspended without pay and prohibited from
20                performing any services for the team, shall not
21                be treated as duty days.
22                    (E) Days for which a member of a
23                professional athletic team is on the disabled
24                list and does not conduct rehabilitation
25                activities at facilities of the team, and is
26                not otherwise performing services for the team

 

 

SB0007- 143 -LRB100 06307 AMC 16345 b

1                in Illinois, shall not be considered duty days
2                spent in this State. All days on the disabled
3                list, however, are considered to be included in
4                total duty days spent both within and without
5                this State.
6                (4) The term "total compensation for services
7            performed as a member of a professional athletic
8            team" means the total compensation received during
9            the taxable year for services performed:
10                    (A) from the beginning of the official
11                pre-season training period through the last
12                game in which the team competes or is scheduled
13                to compete during that taxable year; and
14                    (B) during the taxable year on a date which
15                does not fall within the foregoing period
16                (e.g., participation in instructional leagues,
17                the "All Star Game", or promotional caravans).
18                This compensation shall include, but is not
19            limited to, salaries, wages, bonuses as described
20            in this subpart, and any other type of compensation
21            paid during the taxable year to a member of a
22            professional athletic team for services performed
23            in that year. This compensation does not include
24            strike benefits, severance pay, termination pay,
25            contract or option year buy-out payments,
26            expansion or relocation payments, or any other

 

 

SB0007- 144 -LRB100 06307 AMC 16345 b

1            payments not related to services performed for the
2            team.
3                For purposes of this subparagraph, "bonuses"
4            included in "total compensation for services
5            performed as a member of a professional athletic
6            team" subject to the allocation described in
7            Section 302(c)(1) are: bonuses earned as a result
8            of play (i.e., performance bonuses) during the
9            season, including bonuses paid for championship,
10            playoff or "bowl" games played by a team, or for
11            selection to all-star league or other honorary
12            positions; and bonuses paid for signing a
13            contract, unless the payment of the signing bonus
14            is not conditional upon the signee playing any
15            games for the team or performing any subsequent
16            services for the team or even making the team, the
17            signing bonus is payable separately from the
18            salary and any other compensation, and the signing
19            bonus is nonrefundable.
20    (3) Sales factor.
21        (A) The sales factor is a fraction, the numerator of
22    which is the total sales of the person in this State during
23    the taxable year, and the denominator of which is the total
24    sales of the person everywhere during the taxable year.
25        (B) Sales of tangible personal property are in this
26    State if:

 

 

SB0007- 145 -LRB100 06307 AMC 16345 b

1            (i) The property is delivered or shipped to a
2        purchaser, other than the United States government,
3        within this State regardless of the f. o. b. point or
4        other conditions of the sale; or
5            (ii) The property is shipped from an office, store,
6        warehouse, factory or other place of storage in this
7        State and either the purchaser is the United States
8        government or the person is not taxable in the state of
9        the purchaser; provided, however, that premises owned
10        or leased by a person who has independently contracted
11        with the seller for the printing of newspapers,
12        periodicals or books shall not be deemed to be an
13        office, store, warehouse, factory or other place of
14        storage for purposes of this Section. Sales of tangible
15        personal property are not in this State if the seller
16        and purchaser would be members of the same unitary
17        business group but for the fact that either the seller
18        or purchaser is a person with 80% or more of total
19        business activity outside of the United States and the
20        property is purchased for resale.
21        (B-1) Patents, copyrights, trademarks, and similar
22    items of intangible personal property.
23            (i) Gross receipts from the licensing, sale, or
24        other disposition of a patent, copyright, trademark,
25        or similar item of intangible personal property, other
26        than gross receipts governed by paragraph (B-7) of this

 

 

SB0007- 146 -LRB100 06307 AMC 16345 b

1        item (3), are in this State to the extent the item is
2        utilized in this State during the year the gross
3        receipts are included in gross income.
4            (ii) Place of utilization.
5                (I) A patent is utilized in a state to the
6            extent that it is employed in production,
7            fabrication, manufacturing, or other processing in
8            the state or to the extent that a patented product
9            is produced in the state. If a patent is utilized
10            in more than one state, the extent to which it is
11            utilized in any one state shall be a fraction equal
12            to the gross receipts of the licensee or purchaser
13            from sales or leases of items produced,
14            fabricated, manufactured, or processed within that
15            state using the patent and of patented items
16            produced within that state, divided by the total of
17            such gross receipts for all states in which the
18            patent is utilized.
19                (II) A copyright is utilized in a state to the
20            extent that printing or other publication
21            originates in the state. If a copyright is utilized
22            in more than one state, the extent to which it is
23            utilized in any one state shall be a fraction equal
24            to the gross receipts from sales or licenses of
25            materials printed or published in that state
26            divided by the total of such gross receipts for all

 

 

SB0007- 147 -LRB100 06307 AMC 16345 b

1            states in which the copyright is utilized.
2                (III) Trademarks and other items of intangible
3            personal property governed by this paragraph (B-1)
4            are utilized in the state in which the commercial
5            domicile of the licensee or purchaser is located.
6            (iii) If the state of utilization of an item of
7        property governed by this paragraph (B-1) cannot be
8        determined from the taxpayer's books and records or
9        from the books and records of any person related to the
10        taxpayer within the meaning of Section 267(b) of the
11        Internal Revenue Code, 26 U.S.C. 267, the gross
12        receipts attributable to that item shall be excluded
13        from both the numerator and the denominator of the
14        sales factor.
15        (B-2) Gross receipts from the license, sale, or other
16    disposition of patents, copyrights, trademarks, and
17    similar items of intangible personal property, other than
18    gross receipts governed by paragraph (B-7) of this item
19    (3), may be included in the numerator or denominator of the
20    sales factor only if gross receipts from licenses, sales,
21    or other disposition of such items comprise more than 50%
22    of the taxpayer's total gross receipts included in gross
23    income during the tax year and during each of the 2
24    immediately preceding tax years; provided that, when a
25    taxpayer is a member of a unitary business group, such
26    determination shall be made on the basis of the gross

 

 

SB0007- 148 -LRB100 06307 AMC 16345 b

1    receipts of the entire unitary business group.
2        (B-5) For taxable years ending on or after December 31,
3    2008, except as provided in subsections (ii) through (vii),
4    receipts from the sale of telecommunications service or
5    mobile telecommunications service are in this State if the
6    customer's service address is in this State.
7            (i) For purposes of this subparagraph (B-5), the
8        following terms have the following meanings:
9            "Ancillary services" means services that are
10        associated with or incidental to the provision of
11        "telecommunications services", including but not
12        limited to "detailed telecommunications billing",
13        "directory assistance", "vertical service", and "voice
14        mail services".
15            "Air-to-Ground Radiotelephone service" means a
16        radio service, as that term is defined in 47 CFR 22.99,
17        in which common carriers are authorized to offer and
18        provide radio telecommunications service for hire to
19        subscribers in aircraft.
20            "Call-by-call Basis" means any method of charging
21        for telecommunications services where the price is
22        measured by individual calls.
23            "Communications Channel" means a physical or
24        virtual path of communications over which signals are
25        transmitted between or among customer channel
26        termination points.

 

 

SB0007- 149 -LRB100 06307 AMC 16345 b

1            "Conference bridging service" means an "ancillary
2        service" that links two or more participants of an
3        audio or video conference call and may include the
4        provision of a telephone number. "Conference bridging
5        service" does not include the "telecommunications
6        services" used to reach the conference bridge.
7            "Customer Channel Termination Point" means the
8        location where the customer either inputs or receives
9        the communications.
10            "Detailed telecommunications billing service"
11        means an "ancillary service" of separately stating
12        information pertaining to individual calls on a
13        customer's billing statement.
14            "Directory assistance" means an "ancillary
15        service" of providing telephone number information,
16        and/or address information.
17            "Home service provider" means the facilities based
18        carrier or reseller with which the customer contracts
19        for the provision of mobile telecommunications
20        services.
21            "Mobile telecommunications service" means
22        commercial mobile radio service, as defined in Section
23        20.3 of Title 47 of the Code of Federal Regulations as
24        in effect on June 1, 1999.
25            "Place of primary use" means the street address
26        representative of where the customer's use of the

 

 

SB0007- 150 -LRB100 06307 AMC 16345 b

1        telecommunications service primarily occurs, which
2        must be the residential street address or the primary
3        business street address of the customer. In the case of
4        mobile telecommunications services, "place of primary
5        use" must be within the licensed service area of the
6        home service provider.
7            "Post-paid telecommunication service" means the
8        telecommunications service obtained by making a
9        payment on a call-by-call basis either through the use
10        of a credit card or payment mechanism such as a bank
11        card, travel card, credit card, or debit card, or by
12        charge made to a telephone number which is not
13        associated with the origination or termination of the
14        telecommunications service. A post-paid calling
15        service includes telecommunications service, except a
16        prepaid wireless calling service, that would be a
17        prepaid calling service except it is not exclusively a
18        telecommunication service.
19            "Prepaid telecommunication service" means the
20        right to access exclusively telecommunications
21        services, which must be paid for in advance and which
22        enables the origination of calls using an access number
23        or authorization code, whether manually or
24        electronically dialed, and that is sold in
25        predetermined units or dollars of which the number
26        declines with use in a known amount.

 

 

SB0007- 151 -LRB100 06307 AMC 16345 b

1            "Prepaid Mobile telecommunication service" means a
2        telecommunications service that provides the right to
3        utilize mobile wireless service as well as other
4        non-telecommunication services, including but not
5        limited to ancillary services, which must be paid for
6        in advance that is sold in predetermined units or
7        dollars of which the number declines with use in a
8        known amount.
9            "Private communication service" means a
10        telecommunication service that entitles the customer
11        to exclusive or priority use of a communications
12        channel or group of channels between or among
13        termination points, regardless of the manner in which
14        such channel or channels are connected, and includes
15        switching capacity, extension lines, stations, and any
16        other associated services that are provided in
17        connection with the use of such channel or channels.
18            "Service address" means:
19                (a) The location of the telecommunications
20            equipment to which a customer's call is charged and
21            from which the call originates or terminates,
22            regardless of where the call is billed or paid;
23                (b) If the location in line (a) is not known,
24            service address means the origination point of the
25            signal of the telecommunications services first
26            identified by either the seller's

 

 

SB0007- 152 -LRB100 06307 AMC 16345 b

1            telecommunications system or in information
2            received by the seller from its service provider
3            where the system used to transport such signals is
4            not that of the seller; and
5                (c) If the locations in line (a) and line (b)
6            are not known, the service address means the
7            location of the customer's place of primary use.
8            "Telecommunications service" means the electronic
9        transmission, conveyance, or routing of voice, data,
10        audio, video, or any other information or signals to a
11        point, or between or among points. The term
12        "telecommunications service" includes such
13        transmission, conveyance, or routing in which computer
14        processing applications are used to act on the form,
15        code or protocol of the content for purposes of
16        transmission, conveyance or routing without regard to
17        whether such service is referred to as voice over
18        Internet protocol services or is classified by the
19        Federal Communications Commission as enhanced or value
20        added. "Telecommunications service" does not include:
21                (a) Data processing and information services
22            that allow data to be generated, acquired, stored,
23            processed, or retrieved and delivered by an
24            electronic transmission to a purchaser when such
25            purchaser's primary purpose for the underlying
26            transaction is the processed data or information;

 

 

SB0007- 153 -LRB100 06307 AMC 16345 b

1                (b) Installation or maintenance of wiring or
2            equipment on a customer's premises;
3                (c) Tangible personal property;
4                (d) Advertising, including but not limited to
5            directory advertising; .
6                (e) Billing and collection services provided
7            to third parties;
8                (f) Internet access service;
9                (g) Radio and television audio and video
10            programming services, regardless of the medium,
11            including the furnishing of transmission,
12            conveyance and routing of such services by the
13            programming service provider. Radio and television
14            audio and video programming services shall include
15            but not be limited to cable service as defined in
16            47 USC 522(6) and audio and video programming
17            services delivered by commercial mobile radio
18            service providers, as defined in 47 CFR 20.3;
19                (h) "Ancillary services"; or
20                (i) Digital products "delivered
21            electronically", including but not limited to
22            software, music, video, reading materials or ring
23            tones.
24            "Vertical service" means an "ancillary service"
25        that is offered in connection with one or more
26        "telecommunications services", which offers advanced

 

 

SB0007- 154 -LRB100 06307 AMC 16345 b

1        calling features that allow customers to identify
2        callers and to manage multiple calls and call
3        connections, including "conference bridging services".
4            "Voice mail service" means an "ancillary service"
5        that enables the customer to store, send or receive
6        recorded messages. "Voice mail service" does not
7        include any "vertical services" that the customer may
8        be required to have in order to utilize the "voice mail
9        service".
10            (ii) Receipts from the sale of telecommunications
11        service sold on an individual call-by-call basis are in
12        this State if either of the following applies:
13                (a) The call both originates and terminates in
14            this State.
15                (b) The call either originates or terminates
16            in this State and the service address is located in
17            this State.
18            (iii) Receipts from the sale of postpaid
19        telecommunications service at retail are in this State
20        if the origination point of the telecommunication
21        signal, as first identified by the service provider's
22        telecommunication system or as identified by
23        information received by the seller from its service
24        provider if the system used to transport
25        telecommunication signals is not the seller's, is
26        located in this State.

 

 

SB0007- 155 -LRB100 06307 AMC 16345 b

1            (iv) Receipts from the sale of prepaid
2        telecommunications service or prepaid mobile
3        telecommunications service at retail are in this State
4        if the purchaser obtains the prepaid card or similar
5        means of conveyance at a location in this State.
6        Receipts from recharging a prepaid telecommunications
7        service or mobile telecommunications service is in
8        this State if the purchaser's billing information
9        indicates a location in this State.
10            (v) Receipts from the sale of private
11        communication services are in this State as follows:
12                (a) 100% of receipts from charges imposed at
13            each channel termination point in this State.
14                (b) 100% of receipts from charges for the total
15            channel mileage between each channel termination
16            point in this State.
17                (c) 50% of the total receipts from charges for
18            service segments when those segments are between 2
19            customer channel termination points, 1 of which is
20            located in this State and the other is located
21            outside of this State, which segments are
22            separately charged.
23                (d) The receipts from charges for service
24            segments with a channel termination point located
25            in this State and in two or more other states, and
26            which segments are not separately billed, are in

 

 

SB0007- 156 -LRB100 06307 AMC 16345 b

1            this State based on a percentage determined by
2            dividing the number of customer channel
3            termination points in this State by the total
4            number of customer channel termination points.
5            (vi) Receipts from charges for ancillary services
6        for telecommunications service sold to customers at
7        retail are in this State if the customer's primary
8        place of use of telecommunications services associated
9        with those ancillary services is in this State. If the
10        seller of those ancillary services cannot determine
11        where the associated telecommunications are located,
12        then the ancillary services shall be based on the
13        location of the purchaser.
14            (vii) Receipts to access a carrier's network or
15        from the sale of telecommunication services or
16        ancillary services for resale are in this State as
17        follows:
18                (a) 100% of the receipts from access fees
19            attributable to intrastate telecommunications
20            service that both originates and terminates in
21            this State.
22                (b) 50% of the receipts from access fees
23            attributable to interstate telecommunications
24            service if the interstate call either originates
25            or terminates in this State.
26                (c) 100% of the receipts from interstate end

 

 

SB0007- 157 -LRB100 06307 AMC 16345 b

1            user access line charges, if the customer's
2            service address is in this State. As used in this
3            subdivision, "interstate end user access line
4            charges" includes, but is not limited to, the
5            surcharge approved by the federal communications
6            commission and levied pursuant to 47 CFR 69.
7                (d) Gross receipts from sales of
8            telecommunication services or from ancillary
9            services for telecommunications services sold to
10            other telecommunication service providers for
11            resale shall be sourced to this State using the
12            apportionment concepts used for non-resale
13            receipts of telecommunications services if the
14            information is readily available to make that
15            determination. If the information is not readily
16            available, then the taxpayer may use any other
17            reasonable and consistent method.
18        (B-7) For taxable years ending on or after December 31,
19    2008, receipts from the sale of broadcasting services are
20    in this State if the broadcasting services are received in
21    this State. For purposes of this paragraph (B-7), the
22    following terms have the following meanings:
23            "Advertising revenue" means consideration received
24        by the taxpayer in exchange for broadcasting services
25        or allowing the broadcasting of commercials or
26        announcements in connection with the broadcasting of

 

 

SB0007- 158 -LRB100 06307 AMC 16345 b

1        film or radio programming, from sponsorships of the
2        programming, or from product placements in the
3        programming.
4            "Audience factor" means the ratio that the
5        audience or subscribers located in this State of a
6        station, a network, or a cable system bears to the
7        total audience or total subscribers for that station,
8        network, or cable system. The audience factor for film
9        or radio programming shall be determined by reference
10        to the books and records of the taxpayer or by
11        reference to published rating statistics provided the
12        method used by the taxpayer is consistently used from
13        year to year for this purpose and fairly represents the
14        taxpayer's activity in this State.
15            "Broadcast" or "broadcasting" or "broadcasting
16        services" means the transmission or provision of film
17        or radio programming, whether through the public
18        airwaves, by cable, by direct or indirect satellite
19        transmission, or by any other means of communication,
20        either through a station, a network, or a cable system.
21            "Film" or "film programming" means the broadcast
22        on television of any and all performances, events, or
23        productions, including but not limited to news,
24        sporting events, plays, stories, or other literary,
25        commercial, educational, or artistic works, either
26        live or through the use of video tape, disc, or any

 

 

SB0007- 159 -LRB100 06307 AMC 16345 b

1        other type of format or medium. Each episode of a
2        series of films produced for television shall
3        constitute separate "film" notwithstanding that the
4        series relates to the same principal subject and is
5        produced during one or more tax periods.
6            "Radio" or "radio programming" means the broadcast
7        on radio of any and all performances, events, or
8        productions, including but not limited to news,
9        sporting events, plays, stories, or other literary,
10        commercial, educational, or artistic works, either
11        live or through the use of an audio tape, disc, or any
12        other format or medium. Each episode in a series of
13        radio programming produced for radio broadcast shall
14        constitute a separate "radio programming"
15        notwithstanding that the series relates to the same
16        principal subject and is produced during one or more
17        tax periods.
18                (i) In the case of advertising revenue from
19            broadcasting, the customer is the advertiser and
20            the service is received in this State if the
21            commercial domicile of the advertiser is in this
22            State.
23                (ii) In the case where film or radio
24            programming is broadcast by a station, a network,
25            or a cable system for a fee or other remuneration
26            received from the recipient of the broadcast, the

 

 

SB0007- 160 -LRB100 06307 AMC 16345 b

1            portion of the service that is received in this
2            State is measured by the portion of the recipients
3            of the broadcast located in this State.
4            Accordingly, the fee or other remuneration for
5            such service that is included in the Illinois
6            numerator of the sales factor is the total of those
7            fees or other remuneration received from
8            recipients in Illinois. For purposes of this
9            paragraph, a taxpayer may determine the location
10            of the recipients of its broadcast using the
11            address of the recipient shown in its contracts
12            with the recipient or using the billing address of
13            the recipient in the taxpayer's records.
14                (iii) In the case where film or radio
15            programming is broadcast by a station, a network,
16            or a cable system for a fee or other remuneration
17            from the person providing the programming, the
18            portion of the broadcast service that is received
19            by such station, network, or cable system in this
20            State is measured by the portion of recipients of
21            the broadcast located in this State. Accordingly,
22            the amount of revenue related to such an
23            arrangement that is included in the Illinois
24            numerator of the sales factor is the total fee or
25            other total remuneration from the person providing
26            the programming related to that broadcast

 

 

SB0007- 161 -LRB100 06307 AMC 16345 b

1            multiplied by the Illinois audience factor for
2            that broadcast.
3                (iv) In the case where film or radio
4            programming is provided by a taxpayer that is a
5            network or station to a customer for broadcast in
6            exchange for a fee or other remuneration from that
7            customer the broadcasting service is received at
8            the location of the office of the customer from
9            which the services were ordered in the regular
10            course of the customer's trade or business.
11            Accordingly, in such a case the revenue derived by
12            the taxpayer that is included in the taxpayer's
13            Illinois numerator of the sales factor is the
14            revenue from such customers who receive the
15            broadcasting service in Illinois.
16                (v) In the case where film or radio programming
17            is provided by a taxpayer that is not a network or
18            station to another person for broadcasting in
19            exchange for a fee or other remuneration from that
20            person, the broadcasting service is received at
21            the location of the office of the customer from
22            which the services were ordered in the regular
23            course of the customer's trade or business.
24            Accordingly, in such a case the revenue derived by
25            the taxpayer that is included in the taxpayer's
26            Illinois numerator of the sales factor is the

 

 

SB0007- 162 -LRB100 06307 AMC 16345 b

1            revenue from such customers who receive the
2            broadcasting service in Illinois.
3        (B-8) Gross receipts from winnings under the Illinois
4    Lottery Law from the assignment of a prize under Section
5    13.1 of the Illinois Lottery Law are received in this
6    State. This paragraph (B-8) applies only to taxable years
7    ending on or after December 31, 2013.
8        (B-9) For taxable years ending on or after December 31,
9    2017, gross receipts from winnings from pari-mutuel
10    wagering conducted at a wagering facility licensed under
11    the Illinois Horse Racing Act of 1975 or from winnings from
12    gambling games conducted on a riverboat or in a casino or
13    electronic gaming facility licensed under the Illinois
14    Gambling Act are in this State.
15        (C) For taxable years ending before December 31, 2008,
16    sales, other than sales governed by paragraphs (B), (B-1),
17    (B-2), and (B-8) are in this State if:
18            (i) The income-producing activity is performed in
19        this State; or
20            (ii) The income-producing activity is performed
21        both within and without this State and a greater
22        proportion of the income-producing activity is
23        performed within this State than without this State,
24        based on performance costs.
25        (C-5) For taxable years ending on or after December 31,
26    2008, sales, other than sales governed by paragraphs (B),

 

 

SB0007- 163 -LRB100 06307 AMC 16345 b

1    (B-1), (B-2), (B-5), and (B-7), are in this State if any of
2    the following criteria are met:
3            (i) Sales from the sale or lease of real property
4        are in this State if the property is located in this
5        State.
6            (ii) Sales from the lease or rental of tangible
7        personal property are in this State if the property is
8        located in this State during the rental period. Sales
9        from the lease or rental of tangible personal property
10        that is characteristically moving property, including,
11        but not limited to, motor vehicles, rolling stock,
12        aircraft, vessels, or mobile equipment are in this
13        State to the extent that the property is used in this
14        State.
15            (iii) In the case of interest, net gains (but not
16        less than zero) and other items of income from
17        intangible personal property, the sale is in this State
18        if:
19                (a) in the case of a taxpayer who is a dealer
20            in the item of intangible personal property within
21            the meaning of Section 475 of the Internal Revenue
22            Code, the income or gain is received from a
23            customer in this State. For purposes of this
24            subparagraph, a customer is in this State if the
25            customer is an individual, trust or estate who is a
26            resident of this State and, for all other

 

 

SB0007- 164 -LRB100 06307 AMC 16345 b

1            customers, if the customer's commercial domicile
2            is in this State. Unless the dealer has actual
3            knowledge of the residence or commercial domicile
4            of a customer during a taxable year, the customer
5            shall be deemed to be a customer in this State if
6            the billing address of the customer, as shown in
7            the records of the dealer, is in this State; or
8                (b) in all other cases, if the
9            income-producing activity of the taxpayer is
10            performed in this State or, if the
11            income-producing activity of the taxpayer is
12            performed both within and without this State, if a
13            greater proportion of the income-producing
14            activity of the taxpayer is performed within this
15            State than in any other state, based on performance
16            costs.
17            (iv) Sales of services are in this State if the
18        services are received in this State. For the purposes
19        of this section, gross receipts from the performance of
20        services provided to a corporation, partnership, or
21        trust may only be attributed to a state where that
22        corporation, partnership, or trust has a fixed place of
23        business. If the state where the services are received
24        is not readily determinable or is a state where the
25        corporation, partnership, or trust receiving the
26        service does not have a fixed place of business, the

 

 

SB0007- 165 -LRB100 06307 AMC 16345 b

1        services shall be deemed to be received at the location
2        of the office of the customer from which the services
3        were ordered in the regular course of the customer's
4        trade or business. If the ordering office cannot be
5        determined, the services shall be deemed to be received
6        at the office of the customer to which the services are
7        billed. If the taxpayer is not taxable in the state in
8        which the services are received, the sale must be
9        excluded from both the numerator and the denominator of
10        the sales factor. The Department shall adopt rules
11        prescribing where specific types of service are
12        received, including, but not limited to, publishing,
13        and utility service.
14        (D) For taxable years ending on or after December 31,
15    1995, the following items of income shall not be included
16    in the numerator or denominator of the sales factor:
17    dividends; amounts included under Section 78 of the
18    Internal Revenue Code; and Subpart F income as defined in
19    Section 952 of the Internal Revenue Code. No inference
20    shall be drawn from the enactment of this paragraph (D) in
21    construing this Section for taxable years ending before
22    December 31, 1995.
23        (E) Paragraphs (B-1) and (B-2) shall apply to tax years
24    ending on or after December 31, 1999, provided that a
25    taxpayer may elect to apply the provisions of these
26    paragraphs to prior tax years. Such election shall be made

 

 

SB0007- 166 -LRB100 06307 AMC 16345 b

1    in the form and manner prescribed by the Department, shall
2    be irrevocable, and shall apply to all tax years; provided
3    that, if a taxpayer's Illinois income tax liability for any
4    tax year, as assessed under Section 903 prior to January 1,
5    1999, was computed in a manner contrary to the provisions
6    of paragraphs (B-1) or (B-2), no refund shall be payable to
7    the taxpayer for that tax year to the extent such refund is
8    the result of applying the provisions of paragraph (B-1) or
9    (B-2) retroactively. In the case of a unitary business
10    group, such election shall apply to all members of such
11    group for every tax year such group is in existence, but
12    shall not apply to any taxpayer for any period during which
13    that taxpayer is not a member of such group.
14    (b) Insurance companies.
15        (1) In general. Except as otherwise provided by
16    paragraph (2), business income of an insurance company for
17    a taxable year shall be apportioned to this State by
18    multiplying such income by a fraction, the numerator of
19    which is the direct premiums written for insurance upon
20    property or risk in this State, and the denominator of
21    which is the direct premiums written for insurance upon
22    property or risk everywhere. For purposes of this
23    subsection, the term "direct premiums written" means the
24    total amount of direct premiums written, assessments and
25    annuity considerations as reported for the taxable year on
26    the annual statement filed by the company with the Illinois

 

 

SB0007- 167 -LRB100 06307 AMC 16345 b

1    Director of Insurance in the form approved by the National
2    Convention of Insurance Commissioners or such other form as
3    may be prescribed in lieu thereof.
4        (2) Reinsurance. If the principal source of premiums
5    written by an insurance company consists of premiums for
6    reinsurance accepted by it, the business income of such
7    company shall be apportioned to this State by multiplying
8    such income by a fraction, the numerator of which is the
9    sum of (i) direct premiums written for insurance upon
10    property or risk in this State, plus (ii) premiums written
11    for reinsurance accepted in respect of property or risk in
12    this State, and the denominator of which is the sum of
13    (iii) direct premiums written for insurance upon property
14    or risk everywhere, plus (iv) premiums written for
15    reinsurance accepted in respect of property or risk
16    everywhere. For purposes of this paragraph, premiums
17    written for reinsurance accepted in respect of property or
18    risk in this State, whether or not otherwise determinable,
19    may, at the election of the company, be determined on the
20    basis of the proportion which premiums written for
21    reinsurance accepted from companies commercially domiciled
22    in Illinois bears to premiums written for reinsurance
23    accepted from all sources, or, alternatively, in the
24    proportion which the sum of the direct premiums written for
25    insurance upon property or risk in this State by each
26    ceding company from which reinsurance is accepted bears to

 

 

SB0007- 168 -LRB100 06307 AMC 16345 b

1    the sum of the total direct premiums written by each such
2    ceding company for the taxable year. The election made by a
3    company under this paragraph for its first taxable year
4    ending on or after December 31, 2011, shall be binding for
5    that company for that taxable year and for all subsequent
6    taxable years, and may be altered only with the written
7    permission of the Department, which shall not be
8    unreasonably withheld.
9    (c) Financial organizations.
10        (1) In general. For taxable years ending before
11    December 31, 2008, business income of a financial
12    organization shall be apportioned to this State by
13    multiplying such income by a fraction, the numerator of
14    which is its business income from sources within this
15    State, and the denominator of which is its business income
16    from all sources. For the purposes of this subsection, the
17    business income of a financial organization from sources
18    within this State is the sum of the amounts referred to in
19    subparagraphs (A) through (E) following, but excluding the
20    adjusted income of an international banking facility as
21    determined in paragraph (2):
22            (A) Fees, commissions or other compensation for
23        financial services rendered within this State;
24            (B) Gross profits from trading in stocks, bonds or
25        other securities managed within this State;
26            (C) Dividends, and interest from Illinois

 

 

SB0007- 169 -LRB100 06307 AMC 16345 b

1        customers, which are received within this State;
2            (D) Interest charged to customers at places of
3        business maintained within this State for carrying
4        debit balances of margin accounts, without deduction
5        of any costs incurred in carrying such accounts; and
6            (E) Any other gross income resulting from the
7        operation as a financial organization within this
8        State. In computing the amounts referred to in
9        paragraphs (A) through (E) of this subsection, any
10        amount received by a member of an affiliated group
11        (determined under Section 1504(a) of the Internal
12        Revenue Code but without reference to whether any such
13        corporation is an "includible corporation" under
14        Section 1504(b) of the Internal Revenue Code) from
15        another member of such group shall be included only to
16        the extent such amount exceeds expenses of the
17        recipient directly related thereto.
18        (2) International Banking Facility. For taxable years
19    ending before December 31, 2008:
20            (A) Adjusted Income. The adjusted income of an
21        international banking facility is its income reduced
22        by the amount of the floor amount.
23            (B) Floor Amount. The floor amount shall be the
24        amount, if any, determined by multiplying the income of
25        the international banking facility by a fraction, not
26        greater than one, which is determined as follows:

 

 

SB0007- 170 -LRB100 06307 AMC 16345 b

1                (i) The numerator shall be:
2                The average aggregate, determined on a
3            quarterly basis, of the financial organization's
4            loans to banks in foreign countries, to foreign
5            domiciled borrowers (except where secured
6            primarily by real estate) and to foreign
7            governments and other foreign official
8            institutions, as reported for its branches,
9            agencies and offices within the state on its
10            "Consolidated Report of Condition", Schedule A,
11            Lines 2.c., 5.b., and 7.a., which was filed with
12            the Federal Deposit Insurance Corporation and
13            other regulatory authorities, for the year 1980,
14            minus
15                The average aggregate, determined on a
16            quarterly basis, of such loans (other than loans of
17            an international banking facility), as reported by
18            the financial institution for its branches,
19            agencies and offices within the state, on the
20            corresponding Schedule and lines of the
21            Consolidated Report of Condition for the current
22            taxable year, provided, however, that in no case
23            shall the amount determined in this clause (the
24            subtrahend) exceed the amount determined in the
25            preceding clause (the minuend); and
26                (ii) the denominator shall be the average

 

 

SB0007- 171 -LRB100 06307 AMC 16345 b

1            aggregate, determined on a quarterly basis, of the
2            international banking facility's loans to banks in
3            foreign countries, to foreign domiciled borrowers
4            (except where secured primarily by real estate)
5            and to foreign governments and other foreign
6            official institutions, which were recorded in its
7            financial accounts for the current taxable year.
8            (C) Change to Consolidated Report of Condition and
9        in Qualification. In the event the Consolidated Report
10        of Condition which is filed with the Federal Deposit
11        Insurance Corporation and other regulatory authorities
12        is altered so that the information required for
13        determining the floor amount is not found on Schedule
14        A, lines 2.c., 5.b. and 7.a., the financial institution
15        shall notify the Department and the Department may, by
16        regulations or otherwise, prescribe or authorize the
17        use of an alternative source for such information. The
18        financial institution shall also notify the Department
19        should its international banking facility fail to
20        qualify as such, in whole or in part, or should there
21        be any amendment or change to the Consolidated Report
22        of Condition, as originally filed, to the extent such
23        amendment or change alters the information used in
24        determining the floor amount.
25        (3) For taxable years ending on or after December 31,
26    2008, the business income of a financial organization shall

 

 

SB0007- 172 -LRB100 06307 AMC 16345 b

1    be apportioned to this State by multiplying such income by
2    a fraction, the numerator of which is its gross receipts
3    from sources in this State or otherwise attributable to
4    this State's marketplace and the denominator of which is
5    its gross receipts everywhere during the taxable year.
6    "Gross receipts" for purposes of this subparagraph (3)
7    means gross income, including net taxable gain on
8    disposition of assets, including securities and money
9    market instruments, when derived from transactions and
10    activities in the regular course of the financial
11    organization's trade or business. The following examples
12    are illustrative:
13            (i) Receipts from the lease or rental of real or
14        tangible personal property are in this State if the
15        property is located in this State during the rental
16        period. Receipts from the lease or rental of tangible
17        personal property that is characteristically moving
18        property, including, but not limited to, motor
19        vehicles, rolling stock, aircraft, vessels, or mobile
20        equipment are from sources in this State to the extent
21        that the property is used in this State.
22            (ii) Interest income, commissions, fees, gains on
23        disposition, and other receipts from assets in the
24        nature of loans that are secured primarily by real
25        estate or tangible personal property are from sources
26        in this State if the security is located in this State.

 

 

SB0007- 173 -LRB100 06307 AMC 16345 b

1            (iii) Interest income, commissions, fees, gains on
2        disposition, and other receipts from consumer loans
3        that are not secured by real or tangible personal
4        property are from sources in this State if the debtor
5        is a resident of this State.
6            (iv) Interest income, commissions, fees, gains on
7        disposition, and other receipts from commercial loans
8        and installment obligations that are not secured by
9        real or tangible personal property are from sources in
10        this State if the proceeds of the loan are to be
11        applied in this State. If it cannot be determined where
12        the funds are to be applied, the income and receipts
13        are from sources in this State if the office of the
14        borrower from which the loan was negotiated in the
15        regular course of business is located in this State. If
16        the location of this office cannot be determined, the
17        income and receipts shall be excluded from the
18        numerator and denominator of the sales factor.
19            (v) Interest income, fees, gains on disposition,
20        service charges, merchant discount income, and other
21        receipts from credit card receivables are from sources
22        in this State if the card charges are regularly billed
23        to a customer in this State.
24            (vi) Receipts from the performance of services,
25        including, but not limited to, fiduciary, advisory,
26        and brokerage services, are in this State if the

 

 

SB0007- 174 -LRB100 06307 AMC 16345 b

1        services are received in this State within the meaning
2        of subparagraph (a)(3)(C-5)(iv) of this Section.
3            (vii) Receipts from the issuance of travelers
4        checks and money orders are from sources in this State
5        if the checks and money orders are issued from a
6        location within this State.
7            (viii) Receipts from investment assets and
8        activities and trading assets and activities are
9        included in the receipts factor as follows:
10                (1) Interest, dividends, net gains (but not
11            less than zero) and other income from investment
12            assets and activities from trading assets and
13            activities shall be included in the receipts
14            factor. Investment assets and activities and
15            trading assets and activities include but are not
16            limited to: investment securities; trading account
17            assets; federal funds; securities purchased and
18            sold under agreements to resell or repurchase;
19            options; futures contracts; forward contracts;
20            notional principal contracts such as swaps;
21            equities; and foreign currency transactions. With
22            respect to the investment and trading assets and
23            activities described in subparagraphs (A) and (B)
24            of this paragraph, the receipts factor shall
25            include the amounts described in such
26            subparagraphs.

 

 

SB0007- 175 -LRB100 06307 AMC 16345 b

1                    (A) The receipts factor shall include the
2                amount by which interest from federal funds
3                sold and securities purchased under resale
4                agreements exceeds interest expense on federal
5                funds purchased and securities sold under
6                repurchase agreements.
7                    (B) The receipts factor shall include the
8                amount by which interest, dividends, gains and
9                other income from trading assets and
10                activities, including but not limited to
11                assets and activities in the matched book, in
12                the arbitrage book, and foreign currency
13                transactions, exceed amounts paid in lieu of
14                interest, amounts paid in lieu of dividends,
15                and losses from such assets and activities.
16                (2) The numerator of the receipts factor
17            includes interest, dividends, net gains (but not
18            less than zero), and other income from investment
19            assets and activities and from trading assets and
20            activities described in paragraph (1) of this
21            subsection that are attributable to this State.
22                    (A) The amount of interest, dividends, net
23                gains (but not less than zero), and other
24                income from investment assets and activities
25                in the investment account to be attributed to
26                this State and included in the numerator is

 

 

SB0007- 176 -LRB100 06307 AMC 16345 b

1                determined by multiplying all such income from
2                such assets and activities by a fraction, the
3                numerator of which is the gross income from
4                such assets and activities which are properly
5                assigned to a fixed place of business of the
6                taxpayer within this State and the denominator
7                of which is the gross income from all such
8                assets and activities.
9                    (B) The amount of interest from federal
10                funds sold and purchased and from securities
11                purchased under resale agreements and
12                securities sold under repurchase agreements
13                attributable to this State and included in the
14                numerator is determined by multiplying the
15                amount described in subparagraph (A) of
16                paragraph (1) of this subsection from such
17                funds and such securities by a fraction, the
18                numerator of which is the gross income from
19                such funds and such securities which are
20                properly assigned to a fixed place of business
21                of the taxpayer within this State and the
22                denominator of which is the gross income from
23                all such funds and such securities.
24                    (C) The amount of interest, dividends,
25                gains, and other income from trading assets and
26                activities, including but not limited to

 

 

SB0007- 177 -LRB100 06307 AMC 16345 b

1                assets and activities in the matched book, in
2                the arbitrage book and foreign currency
3                transactions (but excluding amounts described
4                in subparagraphs (A) or (B) of this paragraph),
5                attributable to this State and included in the
6                numerator is determined by multiplying the
7                amount described in subparagraph (B) of
8                paragraph (1) of this subsection by a fraction,
9                the numerator of which is the gross income from
10                such trading assets and activities which are
11                properly assigned to a fixed place of business
12                of the taxpayer within this State and the
13                denominator of which is the gross income from
14                all such assets and activities.
15                    (D) Properly assigned, for purposes of
16                this paragraph (2) of this subsection, means
17                the investment or trading asset or activity is
18                assigned to the fixed place of business with
19                which it has a preponderance of substantive
20                contacts. An investment or trading asset or
21                activity assigned by the taxpayer to a fixed
22                place of business without the State shall be
23                presumed to have been properly assigned if:
24                        (i) the taxpayer has assigned, in the
25                    regular course of its business, such asset
26                    or activity on its records to a fixed place

 

 

SB0007- 178 -LRB100 06307 AMC 16345 b

1                    of business consistent with federal or
2                    state regulatory requirements;
3                        (ii) such assignment on its records is
4                    based upon substantive contacts of the
5                    asset or activity to such fixed place of
6                    business; and
7                        (iii) the taxpayer uses such records
8                    reflecting assignment of such assets or
9                    activities for the filing of all state and
10                    local tax returns for which an assignment
11                    of such assets or activities to a fixed
12                    place of business is required.
13                    (E) The presumption of proper assignment
14                of an investment or trading asset or activity
15                provided in subparagraph (D) of paragraph (2)
16                of this subsection may be rebutted upon a
17                showing by the Department, supported by a
18                preponderance of the evidence, that the
19                preponderance of substantive contacts
20                regarding such asset or activity did not occur
21                at the fixed place of business to which it was
22                assigned on the taxpayer's records. If the
23                fixed place of business that has a
24                preponderance of substantive contacts cannot
25                be determined for an investment or trading
26                asset or activity to which the presumption in

 

 

SB0007- 179 -LRB100 06307 AMC 16345 b

1                subparagraph (D) of paragraph (2) of this
2                subsection does not apply or with respect to
3                which that presumption has been rebutted, that
4                asset or activity is properly assigned to the
5                state in which the taxpayer's commercial
6                domicile is located. For purposes of this
7                subparagraph (E), it shall be presumed,
8                subject to rebuttal, that taxpayer's
9                commercial domicile is in the state of the
10                United States or the District of Columbia to
11                which the greatest number of employees are
12                regularly connected with the management of the
13                investment or trading income or out of which
14                they are working, irrespective of where the
15                services of such employees are performed, as of
16                the last day of the taxable year.
17        (4) (Blank).
18        (5) (Blank).
19    (c-1) Federally regulated exchanges. For taxable years
20ending on or after December 31, 2012, business income of a
21federally regulated exchange shall, at the option of the
22federally regulated exchange, be apportioned to this State by
23multiplying such income by a fraction, the numerator of which
24is its business income from sources within this State, and the
25denominator of which is its business income from all sources.
26For purposes of this subsection, the business income within

 

 

SB0007- 180 -LRB100 06307 AMC 16345 b

1this State of a federally regulated exchange is the sum of the
2following:
3        (1) Receipts attributable to transactions executed on
4    a physical trading floor if that physical trading floor is
5    located in this State.
6        (2) Receipts attributable to all other matching,
7    execution, or clearing transactions, including without
8    limitation receipts from the provision of matching,
9    execution, or clearing services to another entity,
10    multiplied by (i) for taxable years ending on or after
11    December 31, 2012 but before December 31, 2013, 63.77%; and
12    (ii) for taxable years ending on or after December 31,
13    2013, 27.54%.
14        (3) All other receipts not governed by subparagraphs
15    (1) or (2) of this subsection (c-1), to the extent the
16    receipts would be characterized as "sales in this State"
17    under item (3) of subsection (a) of this Section.
18    "Federally regulated exchange" means (i) a "registered
19entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
20or (C), (ii) an "exchange" or "clearing agency" within the
21meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
22entities regulated under any successor regulatory structure to
23the foregoing, and (iv) all taxpayers who are members of the
24same unitary business group as a federally regulated exchange,
25determined without regard to the prohibition in Section
261501(a)(27) of this Act against including in a unitary business

 

 

SB0007- 181 -LRB100 06307 AMC 16345 b

1group taxpayers who are ordinarily required to apportion
2business income under different subsections of this Section;
3provided that this subparagraph (iv) shall apply only if 50% or
4more of the business receipts of the unitary business group
5determined by application of this subparagraph (iv) for the
6taxable year are attributable to the matching, execution, or
7clearing of transactions conducted by an entity described in
8subparagraph (i), (ii), or (iii) of this paragraph.
9    In no event shall the Illinois apportionment percentage
10computed in accordance with this subsection (c-1) for any
11taxpayer for any tax year be less than the Illinois
12apportionment percentage computed under this subsection (c-1)
13for that taxpayer for the first full tax year ending on or
14after December 31, 2013 for which this subsection (c-1) applied
15to the taxpayer.
16    (d) Transportation services. For taxable years ending
17before December 31, 2008, business income derived from
18furnishing transportation services shall be apportioned to
19this State in accordance with paragraphs (1) and (2):
20        (1) Such business income (other than that derived from
21    transportation by pipeline) shall be apportioned to this
22    State by multiplying such income by a fraction, the
23    numerator of which is the revenue miles of the person in
24    this State, and the denominator of which is the revenue
25    miles of the person everywhere. For purposes of this
26    paragraph, a revenue mile is the transportation of 1

 

 

SB0007- 182 -LRB100 06307 AMC 16345 b

1    passenger or 1 net ton of freight the distance of 1 mile
2    for a consideration. Where a person is engaged in the
3    transportation of both passengers and freight, the
4    fraction above referred to shall be determined by means of
5    an average of the passenger revenue mile fraction and the
6    freight revenue mile fraction, weighted to reflect the
7    person's
8            (A) relative railway operating income from total
9        passenger and total freight service, as reported to the
10        Interstate Commerce Commission, in the case of
11        transportation by railroad, and
12            (B) relative gross receipts from passenger and
13        freight transportation, in case of transportation
14        other than by railroad.
15        (2) Such business income derived from transportation
16    by pipeline shall be apportioned to this State by
17    multiplying such income by a fraction, the numerator of
18    which is the revenue miles of the person in this State, and
19    the denominator of which is the revenue miles of the person
20    everywhere. For the purposes of this paragraph, a revenue
21    mile is the transportation by pipeline of 1 barrel of oil,
22    1,000 cubic feet of gas, or of any specified quantity of
23    any other substance, the distance of 1 mile for a
24    consideration.
25        (3) For taxable years ending on or after December 31,
26    2008, business income derived from providing

 

 

SB0007- 183 -LRB100 06307 AMC 16345 b

1    transportation services other than airline services shall
2    be apportioned to this State by using a fraction, (a) the
3    numerator of which shall be (i) all receipts from any
4    movement or shipment of people, goods, mail, oil, gas, or
5    any other substance (other than by airline) that both
6    originates and terminates in this State, plus (ii) that
7    portion of the person's gross receipts from movements or
8    shipments of people, goods, mail, oil, gas, or any other
9    substance (other than by airline) that originates in one
10    state or jurisdiction and terminates in another state or
11    jurisdiction, that is determined by the ratio that the
12    miles traveled in this State bears to total miles
13    everywhere and (b) the denominator of which shall be all
14    revenue derived from the movement or shipment of people,
15    goods, mail, oil, gas, or any other substance (other than
16    by airline). Where a taxpayer is engaged in the
17    transportation of both passengers and freight, the
18    fraction above referred to shall first be determined
19    separately for passenger miles and freight miles. Then an
20    average of the passenger miles fraction and the freight
21    miles fraction shall be weighted to reflect the taxpayer's:
22            (A) relative railway operating income from total
23        passenger and total freight service, as reported to the
24        Surface Transportation Board, in the case of
25        transportation by railroad; and
26            (B) relative gross receipts from passenger and

 

 

SB0007- 184 -LRB100 06307 AMC 16345 b

1        freight transportation, in case of transportation
2        other than by railroad.
3        (4) For taxable years ending on or after December 31,
4    2008, business income derived from furnishing airline
5    transportation services shall be apportioned to this State
6    by multiplying such income by a fraction, the numerator of
7    which is the revenue miles of the person in this State, and
8    the denominator of which is the revenue miles of the person
9    everywhere. For purposes of this paragraph, a revenue mile
10    is the transportation of one passenger or one net ton of
11    freight the distance of one mile for a consideration. If a
12    person is engaged in the transportation of both passengers
13    and freight, the fraction above referred to shall be
14    determined by means of an average of the passenger revenue
15    mile fraction and the freight revenue mile fraction,
16    weighted to reflect the person's relative gross receipts
17    from passenger and freight airline transportation.
18    (e) Combined apportionment. Where 2 or more persons are
19engaged in a unitary business as described in subsection
20(a)(27) of Section 1501, a part of which is conducted in this
21State by one or more members of the group, the business income
22attributable to this State by any such member or members shall
23be apportioned by means of the combined apportionment method.
24    (f) Alternative allocation. If the allocation and
25apportionment provisions of subsections (a) through (e) and of
26subsection (h) do not, for taxable years ending before December

 

 

SB0007- 185 -LRB100 06307 AMC 16345 b

131, 2008, fairly represent the extent of a person's business
2activity in this State, or, for taxable years ending on or
3after December 31, 2008, fairly represent the market for the
4person's goods, services, or other sources of business income,
5the person may petition for, or the Director may, without a
6petition, permit or require, in respect of all or any part of
7the person's business activity, if reasonable:
8        (1) Separate accounting;
9        (2) The exclusion of any one or more factors;
10        (3) The inclusion of one or more additional factors
11    which will fairly represent the person's business
12    activities or market in this State; or
13        (4) The employment of any other method to effectuate an
14    equitable allocation and apportionment of the person's
15    business income.
16    (g) Cross reference. For allocation of business income by
17residents, see Section 301(a).
18    (h) For tax years ending on or after December 31, 1998, the
19apportionment factor of persons who apportion their business
20income to this State under subsection (a) shall be equal to:
21        (1) for tax years ending on or after December 31, 1998
22    and before December 31, 1999, 16 2/3% of the property
23    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
24    the sales factor;
25        (2) for tax years ending on or after December 31, 1999
26    and before December 31, 2000, 8 1/3% of the property factor

 

 

SB0007- 186 -LRB100 06307 AMC 16345 b

1    plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
2    factor;
3        (3) for tax years ending on or after December 31, 2000,
4    the sales factor.
5If, in any tax year ending on or after December 31, 1998 and
6before December 31, 2000, the denominator of the payroll,
7property, or sales factor is zero, the apportionment factor
8computed in paragraph (1) or (2) of this subsection for that
9year shall be divided by an amount equal to 100% minus the
10percentage weight given to each factor whose denominator is
11equal to zero.
12(Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,
13eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)
 
14    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
15    Sec. 710. Withholding from lottery winnings.
16    (a) In general.
17        (1) Any person making a payment to a resident or
18    nonresident of winnings under the Illinois Lottery Law and
19    not required to withhold Illinois income tax from such
20    payment under Subsection (b) of Section 701 of this Act
21    because those winnings are not subject to Federal income
22    tax withholding, must withhold Illinois income tax from
23    such payment at a rate equal to the percentage tax rate for
24    individuals provided in subsection (b) of Section 201,
25    provided that withholding is not required if such payment

 

 

SB0007- 187 -LRB100 06307 AMC 16345 b

1    of winnings is less than $1,000.
2        (2) In the case of an assignment of a lottery prize
3    under Section 13.1 of the Illinois Lottery Law, any person
4    making a payment of the purchase price after December 31,
5    2013, shall withhold from the amount of each payment at a
6    rate equal to the percentage tax rate for individuals
7    provided in subsection (b) of Section 201.
8        (3) Any person making a payment after December 31, 2017
9    to a resident or nonresident of winnings from pari-mutuel
10    wagering conducted at a wagering facility licensed under
11    the Illinois Horse Racing Act of 1975 or from gambling
12    games conducted on a riverboat or in a casino or electronic
13    gaming facility licensed under the Illinois Gambling Act
14    must withhold Illinois income tax from such payment at a
15    rate equal to the percentage tax rate for individuals
16    provided in subsection (b) of Section 201, provided that
17    the person making the payment is required to withhold under
18    Section 3402(q) of the Internal Revenue Code.
19    (b) Credit for taxes withheld. Any amount withheld under
20Subsection (a) shall be a credit against the Illinois income
21tax liability of the person to whom the payment of winnings was
22made for the taxable year in which that person incurred an
23Illinois income tax liability with respect to those winnings.
24(Source: P.A. 98-496, eff. 1-1-14.)
 
25    Section 90-23. The Property Tax Code is amended by adding

 

 

SB0007- 188 -LRB100 06307 AMC 16345 b

1Section 15-144 as follows:
 
2    (35 ILCS 200/15-144 new)
3    Sec. 15-144. Chicago Casino Development Authority. All
4property owned by the Chicago Casino Development Authority is
5exempt. Any property owned by the Chicago Casino Development
6Authority and leased to any other entity is not exempt.
 
7    Section 90-24. The Illinois Municipal Code is amended by
8adding Section 8-10-2.6 as follows:
 
9    (65 ILCS 5/8-10-2.6 new)
10    Sec. 8-10-2.6. Chicago Casino Development Authority.
11Except as otherwise provided in the Chicago Casino Development
12Authority Act, this Division 10 applies to purchase orders and
13contracts relating to the Chicago Casino Development
14Authority.
 
15    Section 90-25. The Joliet Regional Port District Act is
16amended by changing Section 5.1 as follows:
 
17    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
18    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
19any other provision of this Act, the District may not regulate
20the operation, conduct, or navigation of any riverboat gambling
21casino licensed under the Illinois Riverboat Gambling Act, and

 

 

SB0007- 189 -LRB100 06307 AMC 16345 b

1the District may not license, tax, or otherwise levy any
2assessment of any kind on any riverboat gambling casino
3licensed under the Illinois Riverboat Gambling Act. The General
4Assembly declares that the powers to regulate the operation,
5conduct, and navigation of riverboat gambling casinos and to
6license, tax, and levy assessments upon riverboat gambling
7casinos are exclusive powers of the State of Illinois and the
8Illinois Gaming Board as provided in the Illinois Riverboat
9Gambling Act.
10(Source: P.A. 87-1175.)
 
11    Section 90-30. The Consumer Installment Loan Act is amended
12by changing Section 12.5 as follows:
 
13    (205 ILCS 670/12.5)
14    Sec. 12.5. Limited purpose branch.
15    (a) Upon the written approval of the Director, a licensee
16may maintain a limited purpose branch for the sole purpose of
17making loans as permitted by this Act. A limited purpose branch
18may include an automatic loan machine. No other activity shall
19be conducted at the site, including but not limited to,
20accepting payments, servicing the accounts, or collections.
21    (b) The licensee must submit an application for a limited
22purpose branch to the Director on forms prescribed by the
23Director with an application fee of $300. The approval for the
24limited purpose branch must be renewed concurrently with the

 

 

SB0007- 190 -LRB100 06307 AMC 16345 b

1renewal of the licensee's license along with a renewal fee of
2$300 for the limited purpose branch.
3    (c) The books, accounts, records, and files of the limited
4purpose branch's transactions shall be maintained at the
5licensee's licensed location. The licensee shall notify the
6Director of the licensed location at which the books, accounts,
7records, and files shall be maintained.
8    (d) The licensee shall prominently display at the limited
9purpose branch the address and telephone number of the
10licensee's licensed location.
11    (e) No other business shall be conducted at the site of the
12limited purpose branch unless authorized by the Director.
13    (f) The Director shall make and enforce reasonable rules
14for the conduct of a limited purpose branch.
15    (g) A limited purpose branch may not be located within
161,000 feet of a facility operated by an inter-track wagering
17licensee or an organization licensee subject to the Illinois
18Horse Racing Act of 1975, on a riverboat or in a casino subject
19to the Illinois Riverboat Gambling Act, or within 1,000 feet of
20the location at which the riverboat docks or within 1,000 feet
21of a casino.
22(Source: P.A. 90-437, eff. 1-1-98.)
 
23    Section 90-35. The Illinois Horse Racing Act of 1975 is
24amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
2520, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,

 

 

SB0007- 191 -LRB100 06307 AMC 16345 b

1and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
234.3, and 56 as follows:
 
3    (230 ILCS 5/1.2)
4    Sec. 1.2. Legislative intent. This Act is intended to
5benefit the people of the State of Illinois by encouraging the
6breeding and production of race horses, assisting economic
7development and promoting Illinois tourism. The General
8Assembly finds and declares it to be the public policy of the
9State of Illinois to:
10    (a) support and enhance Illinois' horse racing industry,
11which is a significant component within the agribusiness
12industry;
13    (b) ensure that Illinois' horse racing industry remains
14competitive with neighboring states;
15    (c) stimulate growth within Illinois' horse racing
16industry, thereby encouraging new investment and development
17to produce additional tax revenues and to create additional
18jobs;
19    (d) promote the further growth of tourism;
20    (e) encourage the breeding of thoroughbred and
21standardbred horses in this State; and
22    (f) ensure that public confidence and trust in the
23credibility and integrity of racing operations and the
24regulatory process is maintained.
25(Source: P.A. 91-40, eff. 6-25-99.)
 

 

 

SB0007- 192 -LRB100 06307 AMC 16345 b

1    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
2    Sec. 3.11. "Organization Licensee" means any person
3receiving an organization license from the Board to conduct a
4race meeting or meetings. With respect only to electronic
5gaming, "organization licensee" includes the authorization for
6an electronic gaming license under subsection (a) of Section 56
7of this Act.
8(Source: P.A. 79-1185.)
 
9    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
10    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
11system of wagering" means a form of wagering on the outcome of
12horse races in which wagers are made in various denominations
13on a horse or horses and all wagers for each race are pooled
14and held by a licensee for distribution in a manner approved by
15the Board. "Pari-mutuel system of wagering" shall not include
16wagering on historic races. Wagers may be placed via any method
17or at any location authorized under this Act.
18(Source: P.A. 96-762, eff. 8-25-09.)
 
19    (230 ILCS 5/3.31 new)
20    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
21receipts" means the gross receipts less winnings paid to
22wagerers.
 

 

 

SB0007- 193 -LRB100 06307 AMC 16345 b

1    (230 ILCS 5/3.32 new)
2    Sec. 3.32. Gross receipts. "Gross receipts" means the total
3amount of money exchanged for the purchase of chips, tokens, or
4electronic cards by riverboat or casino patrons or electronic
5gaming patrons.
 
6    (230 ILCS 5/3.33 new)
7    Sec. 3.33. Electronic gaming. "Electronic gaming" means
8slot machine gambling, video game of chance gambling, or
9gambling with electronic gambling games as defined in the
10Illinois Gambling Act or defined by the Illinois Gaming Board
11that is conducted at a race track pursuant to an electronic
12gaming license.
 
13    (230 ILCS 5/3.35 new)
14    Sec. 3.35. Electronic gaming license. "Electronic gaming
15license" means a license issued by the Illinois Gaming Board
16under Section 7.7 of the Illinois Gambling Act authorizing
17electronic gaming at an electronic gaming facility.
 
18    (230 ILCS 5/3.36 new)
19    Sec. 3.36. Electronic gaming facility. "Electronic gaming
20facility" means that portion of an organization licensee's race
21track facility at which electronic gaming is conducted.
 
22    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)

 

 

SB0007- 194 -LRB100 06307 AMC 16345 b

1    Sec. 6. Restrictions on Board members.
2    (a) No person shall be appointed a member of the Board or
3continue to be a member of the Board if the person or any
4member of their immediate family is a member of the Board of
5Directors, employee, or financially interested in any of the
6following: (i) any licensee or other person who has applied for
7racing dates to the Board, or the operations thereof including,
8but not limited to, concessions, data processing, track
9maintenance, track security, and pari-mutuel operations,
10located, scheduled or doing business within the State of
11Illinois, (ii) any race horse competing at a meeting under the
12Board's jurisdiction, or (iii) any licensee under the Illinois
13Gambling Act. No person shall be appointed a member of the
14Board or continue to be a member of the Board who is (or any
15member of whose family is) a member of the Board of Directors
16of, or who is a person financially interested in, any licensee
17or other person who has applied for racing dates to the Board,
18or the operations thereof including, but not limited to,
19concessions, data processing, track maintenance, track
20security and pari-mutuel operations, located, scheduled or
21doing business within the State of Illinois, or in any race
22horse competing at a meeting under the Board's jurisdiction. No
23Board member shall hold any other public office for which he
24shall receive compensation other than necessary travel or other
25incidental expenses.
26    (b) No person shall be a member of the Board who is not of

 

 

SB0007- 195 -LRB100 06307 AMC 16345 b

1good moral character or who has been convicted of, or is under
2indictment for, a felony under the laws of Illinois or any
3other state, or the United States.
4    (c) No member of the Board or employee shall engage in any
5political activity.
6    For the purposes of this subsection (c):
7    "Political" means any activity in support of or in
8connection with any campaign for State or local elective office
9or any political organization, but does not include activities
10(i) relating to the support or opposition of any executive,
11legislative, or administrative action (as those terms are
12defined in Section 2 of the Lobbyist Registration Act), (ii)
13relating to collective bargaining, or (iii) that are otherwise
14in furtherance of the person's official State duties or
15governmental and public service functions.
16    "Political organization" means a party, committee,
17association, fund, or other organization (whether or not
18incorporated) that is required to file a statement of
19organization with the State Board of Elections or county clerk
20under Section 9-3 of the Election Code, but only with regard to
21those activities that require filing with the State Board of
22Elections or county clerk.
23    (d) Board members and employees may not engage in
24communications or any activity that may cause or have the
25appearance of causing a conflict of interest. A conflict of
26interest exists if a situation influences or creates the

 

 

SB0007- 196 -LRB100 06307 AMC 16345 b

1appearance that it may influence judgment or performance of
2regulatory duties and responsibilities. This prohibition shall
3extend to any act identified by Board action that, in the
4judgment of the Board, could represent the potential for or the
5appearance of a conflict of interest.
6    (e) Board members and employees may not accept any gift,
7gratuity, service, compensation, travel, lodging, or thing of
8value, with the exception of unsolicited items of an incidental
9nature, from any person, corporation, limited liability
10company, or entity doing business with the Board.
11    (f) A Board member or employee shall not use or attempt to
12use his or her official position to secure, or attempt to
13secure, any privilege, advantage, favor, or influence for
14himself or herself or others. No Board member or employee,
15within a period of one year immediately preceding nomination by
16the Governor or employment, shall have been employed or
17received compensation or fees for services from a person or
18entity, or its parent or affiliate, that has engaged in
19business with the Board, a licensee or a licensee under the
20Illinois Gambling Act. In addition, all Board members and
21employees are subject to the restrictions set forth in Section
225-45 of the State Officials and Employees Ethics Act.
23(Source: P.A. 89-16, eff. 5-30-95.)
 
24    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
25    Sec. 9. The Board shall have all powers necessary and

 

 

SB0007- 197 -LRB100 06307 AMC 16345 b

1proper to fully and effectively execute the provisions of this
2Act, including, but not limited to, the following:
3    (a) The Board is vested with jurisdiction and supervision
4over all race meetings in this State, over all licensees doing
5business in this State, over all occupation licensees, and over
6all persons on the facilities of any licensee. Such
7jurisdiction shall include the power to issue licenses to the
8Illinois Department of Agriculture authorizing the pari-mutuel
9system of wagering on harness and Quarter Horse races held (1)
10at the Illinois State Fair in Sangamon County, and (2) at the
11DuQuoin State Fair in Perry County. The jurisdiction of the
12Board shall also include the power to issue licenses to county
13fairs which are eligible to receive funds pursuant to the
14Agricultural Fair Act, as now or hereafter amended, or their
15agents, authorizing the pari-mutuel system of wagering on horse
16races conducted at the county fairs receiving such licenses.
17Such licenses shall be governed by subsection (n) of this
18Section.
19    Upon application, the Board shall issue a license to the
20Illinois Department of Agriculture to conduct harness and
21Quarter Horse races at the Illinois State Fair and at the
22DuQuoin State Fairgrounds during the scheduled dates of each
23fair. The Board shall not require and the Department of
24Agriculture shall be exempt from the requirements of Sections
2515.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
26(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24

 

 

SB0007- 198 -LRB100 06307 AMC 16345 b

1and 25. The Board and the Department of Agriculture may extend
2any or all of these exemptions to any contractor or agent
3engaged by the Department of Agriculture to conduct its race
4meetings when the Board determines that this would best serve
5the public interest and the interest of horse racing.
6    Notwithstanding any provision of law to the contrary, it
7shall be lawful for any licensee to operate pari-mutuel
8wagering or contract with the Department of Agriculture to
9operate pari-mutuel wagering at the DuQuoin State Fairgrounds
10or for the Department to enter into contracts with a licensee,
11employ its owners, employees or agents and employ such other
12occupation licensees as the Department deems necessary in
13connection with race meetings and wagerings.
14    (b) The Board is vested with the full power to promulgate
15reasonable rules and regulations for the purpose of
16administering the provisions of this Act and to prescribe
17reasonable rules, regulations and conditions under which all
18horse race meetings or wagering in the State shall be
19conducted. Such reasonable rules and regulations are to provide
20for the prevention of practices detrimental to the public
21interest and to promote the best interests of horse racing and
22to impose penalties for violations thereof.
23    (c) The Board, and any person or persons to whom it
24delegates this power, is vested with the power to enter the
25facilities and other places of business of any licensee to
26determine whether there has been compliance with the provisions

 

 

SB0007- 199 -LRB100 06307 AMC 16345 b

1of this Act and its rules and regulations.
2    (d) The Board, and any person or persons to whom it
3delegates this power, is vested with the authority to
4investigate alleged violations of the provisions of this Act,
5its reasonable rules and regulations, orders and final
6decisions; the Board shall take appropriate disciplinary
7action against any licensee or occupation licensee for
8violation thereof or institute appropriate legal action for the
9enforcement thereof.
10    (e) The Board, and any person or persons to whom it
11delegates this power, may eject or exclude from any race
12meeting or the facilities of any licensee, or any part thereof,
13any occupation licensee or any other individual whose conduct
14or reputation is such that his presence on those facilities
15may, in the opinion of the Board, call into question the
16honesty and integrity of horse racing or wagering or interfere
17with the orderly conduct of horse racing or wagering; provided,
18however, that no person shall be excluded or ejected from the
19facilities of any licensee solely on the grounds of race,
20color, creed, national origin, ancestry, or sex. The power to
21eject or exclude an occupation licensee or other individual may
22be exercised for just cause by the licensee or the Board,
23subject to subsequent hearing by the Board as to the propriety
24of said exclusion.
25    (f) The Board is vested with the power to acquire,
26establish, maintain and operate (or provide by contract to

 

 

SB0007- 200 -LRB100 06307 AMC 16345 b

1maintain and operate) testing laboratories and related
2facilities, for the purpose of conducting saliva, blood, urine
3and other tests on the horses run or to be run in any horse race
4meeting, including races run at county fairs, and to purchase
5all equipment and supplies deemed necessary or desirable in
6connection with any such testing laboratories and related
7facilities and all such tests.
8    (g) The Board may require that the records, including
9financial or other statements of any licensee or any person
10affiliated with the licensee who is involved directly or
11indirectly in the activities of any licensee as regulated under
12this Act to the extent that those financial or other statements
13relate to such activities be kept in such manner as prescribed
14by the Board, and that Board employees shall have access to
15those records during reasonable business hours. Within 120 days
16of the end of its fiscal year, each licensee shall transmit to
17the Board an audit of the financial transactions and condition
18of the licensee's total operations. All audits shall be
19conducted by certified public accountants. Each certified
20public accountant must be registered in the State of Illinois
21under the Illinois Public Accounting Act. The compensation for
22each certified public accountant shall be paid directly by the
23licensee to the certified public accountant. A licensee shall
24also submit any other financial or related information the
25Board deems necessary to effectively administer this Act and
26all rules, regulations, and final decisions promulgated under

 

 

SB0007- 201 -LRB100 06307 AMC 16345 b

1this Act.
2    (h) The Board shall name and appoint in the manner provided
3by the rules and regulations of the Board: an Executive
4Director; a State director of mutuels; State veterinarians and
5representatives to take saliva, blood, urine and other tests on
6horses; licensing personnel; revenue inspectors; and State
7seasonal employees (excluding admission ticket sellers and
8mutuel clerks). All of those named and appointed as provided in
9this subsection shall serve during the pleasure of the Board;
10their compensation shall be determined by the Board and be paid
11in the same manner as other employees of the Board under this
12Act.
13    (i) The Board shall require that there shall be 3 stewards
14at each horse race meeting, at least 2 of whom shall be named
15and appointed by the Board. Stewards appointed or approved by
16the Board, while performing duties required by this Act or by
17the Board, shall be entitled to the same rights and immunities
18as granted to Board members and Board employees in Section 10
19of this Act.
20    (j) The Board may discharge any Board employee who fails or
21refuses for any reason to comply with the rules and regulations
22of the Board, or who, in the opinion of the Board, is guilty of
23fraud, dishonesty or who is proven to be incompetent. The Board
24shall have no right or power to determine who shall be
25officers, directors or employees of any licensee, or their
26salaries except the Board may, by rule, require that all or any

 

 

SB0007- 202 -LRB100 06307 AMC 16345 b

1officials or employees in charge of or whose duties relate to
2the actual running of races be approved by the Board.
3    (k) The Board is vested with the power to appoint delegates
4to execute any of the powers granted to it under this Section
5for the purpose of administering this Act and any rules or
6regulations promulgated in accordance with this Act.
7    (l) The Board is vested with the power to impose civil
8penalties of up to $5,000 against an individual and up to
9$10,000 against a licensee for each violation of any provision
10of this Act, any rules adopted by the Board, any order of the
11Board or any other action which, in the Board's discretion, is
12a detriment or impediment to horse racing or wagering.
13Beginning on the date when any organization licensee begins
14conducting electronic gaming pursuant to an electronic gaming
15license issued under the Illinois Gambling Act, the power
16granted to the Board pursuant to this subsection (l) shall
17authorize the Board to impose penalties of up to $10,000
18against an individual and up to $25,000 against a licensee. All
19such civil penalties shall be deposited into the Horse Racing
20Fund.
21    (m) The Board is vested with the power to prescribe a form
22to be used by licensees as an application for employment for
23employees of each licensee.
24    (n) The Board shall have the power to issue a license to
25any county fair, or its agent, authorizing the conduct of the
26pari-mutuel system of wagering. The Board is vested with the

 

 

SB0007- 203 -LRB100 06307 AMC 16345 b

1full power to promulgate reasonable rules, regulations and
2conditions under which all horse race meetings licensed
3pursuant to this subsection shall be held and conducted,
4including rules, regulations and conditions for the conduct of
5the pari-mutuel system of wagering. The rules, regulations and
6conditions shall provide for the prevention of practices
7detrimental to the public interest and for the best interests
8of horse racing, and shall prescribe penalties for violations
9thereof. Any authority granted the Board under this Act shall
10extend to its jurisdiction and supervision over county fairs,
11or their agents, licensed pursuant to this subsection. However,
12the Board may waive any provision of this Act or its rules or
13regulations which would otherwise apply to such county fairs or
14their agents.
15    (o) Whenever the Board is authorized or required by law to
16consider some aspect of criminal history record information for
17the purpose of carrying out its statutory powers and
18responsibilities, then, upon request and payment of fees in
19conformance with the requirements of Section 2605-400 of the
20Department of State Police Law (20 ILCS 2605/2605-400), the
21Department of State Police is authorized to furnish, pursuant
22to positive identification, such information contained in
23State files as is necessary to fulfill the request.
24    (p) To insure the convenience, comfort, and wagering
25accessibility of race track patrons, to provide for the
26maximization of State revenue, and to generate increases in

 

 

SB0007- 204 -LRB100 06307 AMC 16345 b

1purse allotments to the horsemen, the Board shall require any
2licensee to staff the pari-mutuel department with adequate
3personnel.
4(Source: P.A. 97-1060, eff. 8-24-12.)
 
5    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
6    Sec. 15. (a) The Board shall, in its discretion, issue
7occupation licenses to horse owners, trainers, harness
8drivers, jockeys, agents, apprentices, grooms, stable foremen,
9exercise persons, veterinarians, valets, blacksmiths,
10concessionaires and others designated by the Board whose work,
11in whole or in part, is conducted upon facilities within the
12State. Such occupation licenses will be obtained prior to the
13persons engaging in their vocation upon such facilities. The
14Board shall not license pari-mutuel clerks, parking
15attendants, security guards and employees of concessionaires.
16No occupation license shall be required of any person who works
17at facilities within this State as a pari-mutuel clerk, parking
18attendant, security guard or as an employee of a
19concessionaire. Concessionaires of the Illinois State Fair and
20DuQuoin State Fair and employees of the Illinois Department of
21Agriculture shall not be required to obtain an occupation
22license by the Board.
23    (b) Each application for an occupation license shall be on
24forms prescribed by the Board. Such license, when issued, shall
25be for the period ending December 31 of each year, except that

 

 

SB0007- 205 -LRB100 06307 AMC 16345 b

1the Board in its discretion may grant 3-year licenses. The
2application shall be accompanied by a fee of not more than $25
3per year or, in the case of 3-year occupation license
4applications, a fee of not more than $60. Each applicant shall
5set forth in the application his full name and address, and if
6he had been issued prior occupation licenses or has been
7licensed in any other state under any other name, such name,
8his age, whether or not a permit or license issued to him in
9any other state has been suspended or revoked and if so whether
10such suspension or revocation is in effect at the time of the
11application, and such other information as the Board may
12require. Fees for registration of stable names shall not exceed
13$50.00. Beginning on the date when any organization licensee
14begins conducting electronic gaming pursuant to an electronic
15gambling license issued under the Illinois Gambling Act, the
16fee for registration of stable names shall not exceed $150, and
17the application fee for an occupation license shall not exceed
18