Rep. Robert Rita

Filed: 6/1/2019

 

 


 

 


 
10100SB0690ham003LRB101 04451 SMS 61572 a

1
AMENDMENT TO SENATE BILL 690

2    AMENDMENT NO. ______. Amend Senate Bill 690, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5
"Article 5. Leveling the Playing Field for Illinois Retail Act

 
6    Section 5-1. Short title. This Article may be cited as the
7Leveling the Playing Field for Illinois Retail Act. References
8in this Article to "this Act" means this Article.
 
9    Section 5-5. Findings. The General Assembly finds that
10certified service providers and certified automated systems
11simplify use and occupation tax compliance for out-of-state
12sellers, which fosters higher levels of accurate tax collection
13and remittance and generates administrative savings and new
14marginal tax revenue for both State and local taxing
15jurisdictions. By making the services of certified service

 

 

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1providers and certified automated systems available to remote
2retailers without charge as provided in this Act, the State
3will substantially eliminate the burden on those remote
4retailers to collect and remit both State and local taxing
5jurisdiction use and occupation taxes. While providing a means
6for remote retailers to collect and remit tax on an even basis
7with Illinois retailers, this Act also protects existing local
8tax revenue streams by retaining origin sourcing for all
9transactions by retailers maintaining a physical presence in
10Illinois.
 
11    Section 5-10. Definitions. As used in this Act:
12    "Certified service provider" means an agent certified by
13the Department to perform the remote retailer's use and
14occupation tax functions, as outlined in the contract between
15the State and the certified service provider.
16    "Certified automated system" means an automated software
17system that is certified by the State as meeting all
18performance and tax calculation standards required by
19Department rules.
20    "Department" means the Department of Revenue.
21    "Remote retailer" means a retailer as defined in Section 1
22of the Retailers' Occupation Tax Act that has an obligation to
23collect State and local retailers' occupation tax under
24subsection (b) of Section 2 of the Retailers' Occupation Tax
25Act.

 

 

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1    "Retailers' occupation tax" means the tax levied under the
2Retailers' Occupation Tax Act and all applicable local
3retailers' occupation taxes collected by the Department in
4conjunction with the State retailers' occupation tax.
 
5    Section 5-15. Certification of certified service
6providers. The Department shall, no later than December 31,
72019, establish standards for the certification of certified
8service providers and certified automated systems and may act
9jointly with other states to accomplish these ends.
10    The Department may take other actions reasonably required
11to implement the provisions of this Act, including the adoption
12of rules and emergency rules and the procurement of goods and
13services, which also may be coordinated jointly with other
14states.
 
15    Section 5-20. Provision of databases. The Department
16shall, no later than July 1, 2020:
17        (1) provide and maintain an electronic, downloadable
18    database of defined product categories that identifies the
19    taxability of each category;
20        (2) provide and maintain an electronic, downloadable
21    database of all retailers' occupation tax rates for the
22    jurisdictions in this State that levy a retailers'
23    occupation tax; and
24        (3) provide and maintain an electronic, downloadable

 

 

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1    database that assigns delivery addresses in this State to
2    the applicable taxing jurisdictions.
 
3    Section 5-25. Certification. The Department shall, no
4later than July 1, 2020:
5        (1) provide uniform minimum standards that companies
6    wishing to be designated as a certified service provider in
7    this State must meet; those minimum standards must include
8    an expedited certification process for companies that have
9    been certified in at least 5 other states;
10        (2) provide uniform minimum standards that certified
11    automated systems must meet; those minimum standards may
12    include an expedited certification process for automated
13    systems that have been certified in at least 5 other
14    states;
15        (3) establish a certification process to review the
16    systems of companies wishing to be designated as a
17    certified service provider in this State or of companies
18    wishing to use a certified automated process; this
19    certification process shall provide that companies that
20    meet all required standards and whose systems have been
21    tested and approved by the Department for properly
22    determining the taxability of items to be sold, the correct
23    tax rate to apply to a transaction, and the appropriate
24    jurisdictions to which the tax shall be remitted, shall be
25    certified;

 

 

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1        (4) enter into a contractual relationship with each
2    company that qualifies as a certified service provider or
3    that will be using a certified automated system; those
4    contracts shall, at a minimum, provide:
5            (A) the responsibilities of the certified service
6        provider and the remote retailers that contract with
7        the certified service provider or the user of a
8        certified automated system related to liability for
9        proper collection and remittance of use and occupation
10        taxes;
11            (B) the responsibilities of the certified service
12        provider and the remote retailers that contract with
13        the certified service provider or the user of a
14        certified service provider related to record keeping
15        and auditing;
16            (C) for the protection and confidentiality of tax
17        information; and
18            (D) compensation equal to 1.75% of the tax dollars
19        collected and remitted to the State by a certified
20        service provider on a timely basis on behalf of remote
21        retailers; remote retailers using a certified service
22        provider may not claim the vendor's discount allowed
23        under the Retailers' Occupation Tax Act or the Service
24        Occupation Tax Act.
25    The provisions of this Section shall supersede the
26provisions of the Illinois Procurement Code.
 

 

 

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1    Section 5-30. Relief from liability. Beginning January 1,
22020, remote retailers using certified service providers or
3certified automated systems and their certified service
4providers or certified automated systems providers are
5relieved from liability to the State for having charged and
6collected the incorrect amount of use or occupation tax
7resulting from a certified service provider or certified
8automated system relying, at the time of the sale, on: (1)
9erroneous data provided by the State in database files on tax
10rates, boundaries, or taxing jurisdictions; or (2) erroneous
11data provided by the State concerning the taxability of
12products and services.
13    The Department shall, to the best of its ability, assign
14addresses to the proper local taxing jurisdiction using a
159-digit zip code identifier. On an annual basis, the Department
16shall make available to local taxing jurisdictions the taxing
17jurisdiction boundaries determined by the Department for their
18verification. If a jurisdiction fails to verify their taxing
19jurisdiction boundaries to the Department in any given year,
20the Department shall assign retailers' occupation tax revenue
21from remote retail sales based on its best information. In that
22case, tax revenues from remote retail sales remitted to a
23taxing jurisdiction based on erroneous local tax boundary
24information will be assigned to the correct taxing jurisdiction
25on a prospective basis upon notice of the boundary error from a

 

 

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1local taxing jurisdiction. No certified service provider or
2remote retailer using a certified automated system shall be
3subject to a class action brought on behalf of customers and
4arising from, or in any way related to, an overpayment of
5retailers' occupation tax collected by the certified service
6provider if, at the time of the sale, they relied on
7information provided by the Department, regardless of whether
8that claim is characterized as a tax refund claim. Nothing in
9this Section affects a customer's right to seek a refund from
10the remote retailer as provided in this Act.
 
11    Section 5-97. Severability. The provisions of this Act are
12severable under Section 1.31 of the Statute on Statutes.
 
13
Article 10. Parking Excise Tax Act

 
14    Section 10-1. Short title. This Article may be cited as the
15Parking Excise Tax Act. References in this Article to "this
16Act" mean this Article.
 
17    Section 10-5. Definitions.
18    "Booking intermediary" means any person or entity that
19facilitates the processing and fulfillment of reservation
20transactions between an operator and a person or entity
21desiring parking in a parking lot or garage of that operator.
22    "Charge or fee paid for parking" means the gross amount of

 

 

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1consideration for the use or privilege of parking a motor
2vehicle in or upon any parking lot or garage in the State,
3collected by an operator and valued in money, whether received
4in money or otherwise, including cash, credits, property, and
5services, determined without any deduction for costs or
6expenses, but not including charges that are added to the
7charge or fee on account of the tax imposed by this Act or on
8account of any other tax imposed on the charge or fee. "Charge
9or fee paid for parking" excludes separately stated charges not
10for the use or privilege or parking and excludes amounts
11retained by or paid to a booking intermediary for services
12provided by the booking intermediary. If any separately stated
13charge is not optional, it shall be presumed that it is part of
14the charge for the use or privilege or parking.
15    "Department" means the Department of Revenue.
16    "Operator" means any person who engages in the business of
17operating a parking area or garage, or who, directly or through
18an agreement or arrangement with another party, collects the
19consideration for parking or storage of motor vehicles,
20recreational vehicles, or other self-propelled vehicles, at
21that parking place. This includes, but is not limited to, any
22facilitator or aggregator that collects from the purchaser the
23charge or fee paid for parking. "Operator" does not include a
24bank, credit card company, payment processor, booking
25intermediary, or person whose involvement is limited to
26performing functions that are similar to those performed by a

 

 

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1bank, credit card company, payment processor, or booking
2intermediary.
3    "Parking area or garage" means any real estate, building,
4structure, premises, enclosure or other place, whether
5enclosed or not, except a public way, within the State, where
6motor vehicles, recreational vehicles, or other self-propelled
7vehicles, are stored, housed or parked for hire, charge, fee or
8other valuable consideration in a condition ready for use, or
9where rent or compensation is paid to the owner, manager,
10operator or lessee of the premises for the housing, storing,
11sheltering, keeping or maintaining motor vehicles,
12recreational vehicles, or other self-propelled vehicles.
13"Parking area or garage" includes any parking area or garage,
14whether the vehicle is parked by the owner of the vehicle or by
15the operator or an attendant.
16    "Person" means any natural individual, firm, trust,
17estate, partnership, association, joint stock company, joint
18venture, corporation, limited liability company, or a
19receiver, trustee, guardian, or other representative appointed
20by order of any court.
21    "Purchase price" means the consideration paid for the
22purchase of a parking space in a parking area or garage, valued
23in money, whether received in money or otherwise, including
24cash, gift cards, credits, and property, and shall be
25determined without any deduction on account of the cost of
26materials used, labor or service costs, or any other expense

 

 

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1whatsoever.
2    "Purchase price" includes any and all charges that the
3recipient pays related to or incidental to obtaining the use or
4privilege of using a parking space in a parking area or garage,
5including but not limited to any and all related markups,
6service fees, convenience fees, facilitation fees,
7cancellation fees, overtime fees, or other such charges,
8regardless of terminology. However, "purchase price" shall not
9include consideration paid for:
10        (1) optional, separately stated charges not for the use
11    or privilege of using a parking space in the parking area
12    or garage;
13        (2) any charge for a dishonored check;
14        (3) any finance or credit charge, penalty or charge for
15    delayed payment, or discount for prompt payment;
16        (4) any purchase by a purchaser if the operator is
17    prohibited by federal or State Constitution, treaty,
18    convention, statute or court decision from collecting the
19    tax from such purchaser;
20        (5) the isolated or occasional sale of parking spaces
21    subject to tax under this Act by a person who does not hold
22    himself out as being engaged (or who does not habitually
23    engage) in selling of parking spaces; and
24        (6) any amounts added to a purchaser's bills because of
25    charges made pursuant to the tax imposed by this Act. If
26    credit is extended, then the amount thereof shall be

 

 

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1    included only as and when payments are made.
2    "Purchaser" means any person who acquires a parking space
3in a parking area or garage for use for valuable consideration.
4    "Use" means the exercise by any person of any right or
5power over, or the enjoyment of, a parking space in a parking
6area or garage subject to tax under this Act.
 
7    Section 10-10. Imposition of tax; calculation of tax.
8    (a) Beginning on January 1, 2020, a tax is imposed on the
9privilege of using in this State a parking space in a parking
10area or garage for the use of parking one or more motor
11vehicles, recreational vehicles, or other self-propelled
12vehicles, at the rate of:
13        (1) 6% of the purchase price for a parking space paid
14    for on an hourly, daily, or weekly basis; and
15        (2) 9% of the purchase price for a parking space paid
16    for on a monthly or annual basis.
17    (b) The tax shall be collected from the purchaser by the
18operator.
19    (c) An operator that has paid or remitted the tax imposed
20by this Act to another operator in connection with the same
21parking transaction, or the use of the same parking space, that
22is subject to tax under this Act, shall be entitled to a credit
23for such tax paid or remitted against the amount of tax owed
24under this Act, provided that the other operator is registered
25under this Act. The operator claiming the credit shall have the

 

 

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1burden of proving it is entitled to claim a credit.
2    (d) If any operator erroneously collects tax or collects
3more from the purchaser than the purchaser's liability for the
4transaction, the purchaser shall have a legal right to claim a
5refund of such amount from the operator. However, if such
6amount is not refunded to the purchaser for any reason, the
7operator is liable to pay such amount to the Department.
8    (e) The tax imposed by this Section is not imposed with
9respect to any transaction in interstate commerce, to the
10extent that the transaction may not, under the Constitution and
11statutes of the United States, be made the subject of taxation
12by this State.
 
13    Section 10-15. Filing of returns and deposit of proceeds.
14On or before the last day of each calendar month, every
15operator engaged in the business of providing to purchasers
16parking areas and garages in this State during the preceding
17calendar month shall file a return with the Department,
18stating:
19        (1) the name of the operator;
20        (2) the address of its principal place of business and
21    the address of the principal place of business from which
22    it provides parking areas and garages in this State;
23        (3) the total amount of receipts received by the
24    operator during the preceding calendar month or quarter, as
25    the case may be, from sales of parking spaces to purchasers

 

 

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1    in parking areas or garages during the preceding calendar
2    month or quarter;
3        (4) deductions allowed by law;
4        (5) the total amount of receipts received by the
5    operator during the preceding calendar month or quarter
6    upon which the tax was computed;
7        (6) the amount of tax due; and
8        (7) such other reasonable information as the
9    Department may require.
10    If an operator ceases to engage in the kind of business
11that makes it responsible for filing returns under this Act,
12then that operator shall file a final return under this Act
13with the Department on or before the last day of the month
14after discontinuing such business.
15    All returns required to be filed and payments required to
16be made under this Act shall be by electronic means. Taxpayers
17who demonstrate hardship in filing or paying electronically may
18petition the Department to waive the electronic filing or
19payment requirement, or both. The Department may require a
20separate return for the tax under this Act or combine the
21return for the tax under this Act with the return for other
22taxes.
23    If the same person has more than one business registered
24with the Department under separate registrations under this
25Act, that person shall not file each return that is due as a
26single return covering all such registered businesses but shall

 

 

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1file separate returns for each such registered business.
2    If the operator is a corporation, the return filed on
3behalf of that corporation shall be signed by the president,
4vice-president, secretary, or treasurer, or by a properly
5accredited agent of such corporation.
6    The operator filing the return under this Act shall, at the
7time of filing the return, pay to the Department the amount of
8tax imposed by this Act less a discount of 1.75%, not to exceed
9$1,000 per month, which is allowed to reimburse the operator
10for the expenses incurred in keeping records, preparing and
11filing returns, remitting the tax, and supplying data to the
12Department on request.
13    If any payment provided for in this Section exceeds the
14taxpayer's liabilities under this Act, as shown on an original
15return, the Department may authorize the taxpayer to credit
16such excess payment against liability subsequently to be
17remitted to the Department under this Act, in accordance with
18reasonable rules adopted by the Department. If the Department
19subsequently determines that all or any part of the credit
20taken was not actually due to the taxpayer, the taxpayer's
21discount shall be reduced by an amount equal to the difference
22between the discount as applied to the credit taken and that
23actually due, and that taxpayer shall be liable for penalties
24and interest on such difference.
 
25    Section 10-20. Exemptions. The tax imposed by this Act

 

 

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1shall not apply to:
2        (1) parking in a parking area or garage operated by the
3    federal government or its instrumentalities that has been
4    issued an active tax exemption number by the Department
5    under Section 1g of the Retailers' Occupation Tax Act; for
6    this exemption to apply, the parking area or garage must be
7    operated by the federal government or its
8    instrumentalities; the exemption under this paragraph (1)
9    does not apply if the parking area or garage is operated by
10    a third party, whether under a lease or other contractual
11    arrangement, or any other manner whatsoever;
12        (2) residential off-street parking for home or
13    apartment tenants or condominium occupants, if the
14    arrangement for such parking is provided in the home or
15    apartment lease or in a separate writing between the
16    landlord and tenant, or in a condominium agreement between
17    the condominium association and the owner, occupant, or
18    guest of a unit, whether the parking charge is payable to
19    the landlord, condominium association, or to the operator
20    of the parking spaces;
21        (3) parking by hospital employees in a parking space
22    that is owned and operated by the hospital for which they
23    work; and
24        (4) parking in a parking area or garage where 3 or
25    fewer motor vehicles are stored, housed, or parked for
26    hire, charge, fee or other valuable consideration, if the

 

 

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1    operator of the parking area or garage does not act as the
2    operator of more than a total of 3 parking spaces located
3    in the State; if any operator of parking areas or garages,
4    including any facilitator or aggregator, acts as an
5    operator of more than 3 parking spaces in total that are
6    located in the State, then this exemption shall not apply
7    to any of those spaces.
 
8    Section 10-25. Collection of tax.
9    (a) Beginning with bills issued or charges collected for a
10purchase of a parking space in a parking area or garage on and
11after January 1, 2020, the tax imposed by this Act shall be
12collected from the purchaser by the operator at the rate stated
13in Section 10-10 and shall be remitted to the Department as
14provided in this Act. All charges for parking spaces in a
15parking area or garage are presumed subject to tax collection.
16Operators shall collect the tax from purchasers by adding the
17tax to the amount of the purchase price received from the
18purchaser. The tax imposed by the Act shall when collected be
19stated as a distinct item separate and apart from the purchase
20price of the service subject to tax under this Act. However,
21where it is not possible to state the tax separately the
22Department may by rule exempt such purchases from this
23requirement so long as purchasers are notified by language on
24the invoice or notified by a sign that the tax is included in
25the purchase price.

 

 

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1    (b) Any person purchasing a parking space in a parking area
2or garage subject to tax under this Act as to which there has
3been no charge made to him of the tax imposed by Section 10-10,
4shall make payment of the tax imposed by Section 10-10 of this
5Act in the form and manner provided by the Department, such
6payment to be made to the Department in the manner and form
7required by the Department not later than the 20th day of the
8month following the month of purchase of the parking space.
 
9    Section 10-30. Registration of operators.
10    (a) A person who engages in business as an operator of a
11parking area or garage in this State shall register with the
12Department. Application for a certificate of registration
13shall be made to the Department, by electronic means, in the
14form and manner prescribed by the Department and shall contain
15any reasonable information the Department may require. Upon
16receipt of the application for a certificate of registration in
17proper form and manner, the Department shall issue to the
18applicant a certificate of registration. Operators who
19demonstrate that they do not have access to the Internet or
20demonstrate hardship in applying electronically may petition
21the Department to waive the electronic application
22requirements.
23    (b) The Department may refuse to issue or reissue a
24certificate of registration to any applicant for the reasons
25set forth in Section 2505-380 of the Department of Revenue Law

 

 

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1of the Civil Administrative Code of Illinois.
2    (c) Any person aggrieved by any decision of the Department
3under this Section may, within 20 days after notice of such
4decision, protest and request a hearing, whereupon the
5Department shall give notice to such person of the time and
6place fixed for such hearing and shall hold a hearing in
7conformity with the provisions of this Act and then issue its
8final administrative decision in the matter to such person. In
9the absence of such a protest within 20 days, the Department's
10decision shall become final without any further determination
11being made or notice given.
 
12    Section 10-35. Revocation of certificate of registration.
13    (a) The Department may, after notice and a hearing as
14provided in this Act, revoke the certificate of registration of
15any operator who violates any of the provisions of this Act or
16any rule adopted pursuant to this Act. Before revocation of a
17certificate of registration, the Department shall, within 90
18days after non-compliance and at least 7 days prior to the date
19of the hearing, give the operator so accused notice in writing
20of the charge against him or her, and on the date designated
21shall conduct a hearing upon this matter. The lapse of such
2290-day period shall not preclude the Department from conducting
23revocation proceedings at a later date if necessary. Any
24hearing held under this Section shall be conducted by the
25Director or by any officer or employee of the Department

 

 

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1designated in writing by the Director.
2    (b) The Department may revoke a certificate of registration
3for the reasons set forth in Section 2505-380 of the Department
4of Revenue Law of the Civil Administrative Code of Illinois.
5    (c) Upon the hearing of any such proceeding, the Director
6or any officer or employee of the Department designated in
7writing by the Director may administer oaths, and the
8Department may procure by its subpoena the attendance of
9witnesses and, by its subpoena duces tecum, the production of
10relevant books and papers. Any circuit court, upon application
11either of the operator or of the Department, may, by order duly
12entered, require the attendance of witnesses and the production
13of relevant books and papers before the Department in any
14hearing relating to the revocation of certificates of
15registration. Upon refusal or neglect to obey the order of the
16court, the court may compel obedience thereof by proceedings
17for contempt.
18    (d) The Department may, by application to any circuit
19court, obtain an injunction requiring any person who engages in
20business as an operator under this Act to obtain a certificate
21of registration. Upon refusal or neglect to obey the order of
22the court, the court may compel obedience by proceedings for
23contempt.
 
24    Section 10-40. Valet services.
25    (a) Persons engaged in the business of providing valet

 

 

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1services are subject to the tax imposed by this Act on the
2purchase price received in connection with their valet parking
3operations.
4    (b) Persons engaged in the business of providing valet
5services are entitled to take the credit in subsection (c) of
6Section 10-10.
7    (c) Tips received by persons parking cars for persons
8engaged in the business of providing valet services are not
9subject to the tax imposed by this Act if the tips are retained
10by the person receiving the tip. If the tips are turned over to
11the valet business, the tips shall be included in the purchase
12price.
 
13    Section 10-45. Tax collected as debt owed to State. The tax
14herein required to be collected by any operator or valet
15business and any such tax collected by that person, shall
16constitute a debt owed by that person to this State.
 
17    Section 10-50. Incorporation by reference. All of the
18provisions of Sections 1, 2a, 2b, 3 (except provisions relating
19to transaction returns and except for provisions that are
20inconsistent with this Act), in respect to all provisions
21therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d,
225e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and
2313 of the Retailers' Occupation Tax Act that are not
24inconsistent with this Act, and all provisions of the Uniform

 

 

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1Penalty and Interest Act shall apply, as far as practicable, to
2the subject matter of this Act to the same extent as if such
3provisions were included in this Act.
 
4    Section 10-55. Deposit of proceeds from parking excise tax.
5The moneys received by the Department from the tax imposed by
6this Act shall be deposited into the Capital Projects Fund.
 
7
Article 15. Amendatory Provisions

 
8    Section 15-5. The Illinois Administrative Procedure Act is
9amended by changing Section 5-45 as follows:
 
10    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
11    Sec. 5-45. Emergency rulemaking.
12    (a) "Emergency" means the existence of any situation that
13any agency finds reasonably constitutes a threat to the public
14interest, safety, or welfare.
15    (b) If any agency finds that an emergency exists that
16requires adoption of a rule upon fewer days than is required by
17Section 5-40 and states in writing its reasons for that
18finding, the agency may adopt an emergency rule without prior
19notice or hearing upon filing a notice of emergency rulemaking
20with the Secretary of State under Section 5-70. The notice
21shall include the text of the emergency rule and shall be
22published in the Illinois Register. Consent orders or other

 

 

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1court orders adopting settlements negotiated by an agency may
2be adopted under this Section. Subject to applicable
3constitutional or statutory provisions, an emergency rule
4becomes effective immediately upon filing under Section 5-65 or
5at a stated date less than 10 days thereafter. The agency's
6finding and a statement of the specific reasons for the finding
7shall be filed with the rule. The agency shall take reasonable
8and appropriate measures to make emergency rules known to the
9persons who may be affected by them.
10    (c) An emergency rule may be effective for a period of not
11longer than 150 days, but the agency's authority to adopt an
12identical rule under Section 5-40 is not precluded. No
13emergency rule may be adopted more than once in any 24-month
14period, except that this limitation on the number of emergency
15rules that may be adopted in a 24-month period does not apply
16to (i) emergency rules that make additions to and deletions
17from the Drug Manual under Section 5-5.16 of the Illinois
18Public Aid Code or the generic drug formulary under Section
193.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
20emergency rules adopted by the Pollution Control Board before
21July 1, 1997 to implement portions of the Livestock Management
22Facilities Act, (iii) emergency rules adopted by the Illinois
23Department of Public Health under subsections (a) through (i)
24of Section 2 of the Department of Public Health Act when
25necessary to protect the public's health, (iv) emergency rules
26adopted pursuant to subsection (n) of this Section, (v)

 

 

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1emergency rules adopted pursuant to subsection (o) of this
2Section, or (vi) emergency rules adopted pursuant to subsection
3(c-5) of this Section. Two or more emergency rules having
4substantially the same purpose and effect shall be deemed to be
5a single rule for purposes of this Section.
6    (c-5) To facilitate the maintenance of the program of group
7health benefits provided to annuitants, survivors, and retired
8employees under the State Employees Group Insurance Act of
91971, rules to alter the contributions to be paid by the State,
10annuitants, survivors, retired employees, or any combination
11of those entities, for that program of group health benefits,
12shall be adopted as emergency rules. The adoption of those
13rules shall be considered an emergency and necessary for the
14public interest, safety, and welfare.
15    (d) In order to provide for the expeditious and timely
16implementation of the State's fiscal year 1999 budget,
17emergency rules to implement any provision of Public Act 90-587
18or 90-588 or any other budget initiative for fiscal year 1999
19may be adopted in accordance with this Section by the agency
20charged with administering that provision or initiative,
21except that the 24-month limitation on the adoption of
22emergency rules and the provisions of Sections 5-115 and 5-125
23do not apply to rules adopted under this subsection (d). The
24adoption of emergency rules authorized by this subsection (d)
25shall be deemed to be necessary for the public interest,
26safety, and welfare.

 

 

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1    (e) In order to provide for the expeditious and timely
2implementation of the State's fiscal year 2000 budget,
3emergency rules to implement any provision of Public Act 91-24
4or any other budget initiative for fiscal year 2000 may be
5adopted in accordance with this Section by the agency charged
6with administering that provision or initiative, except that
7the 24-month limitation on the adoption of emergency rules and
8the provisions of Sections 5-115 and 5-125 do not apply to
9rules adopted under this subsection (e). The adoption of
10emergency rules authorized by this subsection (e) shall be
11deemed to be necessary for the public interest, safety, and
12welfare.
13    (f) In order to provide for the expeditious and timely
14implementation of the State's fiscal year 2001 budget,
15emergency rules to implement any provision of Public Act 91-712
16or any other budget initiative for fiscal year 2001 may be
17adopted in accordance with this Section by the agency charged
18with administering that provision or initiative, except that
19the 24-month limitation on the adoption of emergency rules and
20the provisions of Sections 5-115 and 5-125 do not apply to
21rules adopted under this subsection (f). The adoption of
22emergency rules authorized by this subsection (f) shall be
23deemed to be necessary for the public interest, safety, and
24welfare.
25    (g) In order to provide for the expeditious and timely
26implementation of the State's fiscal year 2002 budget,

 

 

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1emergency rules to implement any provision of Public Act 92-10
2or any other budget initiative for fiscal year 2002 may be
3adopted in accordance with this Section by the agency charged
4with administering that provision or initiative, except that
5the 24-month limitation on the adoption of emergency rules and
6the provisions of Sections 5-115 and 5-125 do not apply to
7rules adopted under this subsection (g). The adoption of
8emergency rules authorized by this subsection (g) shall be
9deemed to be necessary for the public interest, safety, and
10welfare.
11    (h) In order to provide for the expeditious and timely
12implementation of the State's fiscal year 2003 budget,
13emergency rules to implement any provision of Public Act 92-597
14or any other budget initiative for fiscal year 2003 may be
15adopted in accordance with this Section by the agency charged
16with administering that provision or initiative, except that
17the 24-month limitation on the adoption of emergency rules and
18the provisions of Sections 5-115 and 5-125 do not apply to
19rules adopted under this subsection (h). The adoption of
20emergency rules authorized by this subsection (h) shall be
21deemed to be necessary for the public interest, safety, and
22welfare.
23    (i) In order to provide for the expeditious and timely
24implementation of the State's fiscal year 2004 budget,
25emergency rules to implement any provision of Public Act 93-20
26or any other budget initiative for fiscal year 2004 may be

 

 

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1adopted in accordance with this Section by the agency charged
2with administering that provision or initiative, except that
3the 24-month limitation on the adoption of emergency rules and
4the provisions of Sections 5-115 and 5-125 do not apply to
5rules adopted under this subsection (i). The adoption of
6emergency rules authorized by this subsection (i) shall be
7deemed to be necessary for the public interest, safety, and
8welfare.
9    (j) In order to provide for the expeditious and timely
10implementation of the provisions of the State's fiscal year
112005 budget as provided under the Fiscal Year 2005 Budget
12Implementation (Human Services) Act, emergency rules to
13implement any provision of the Fiscal Year 2005 Budget
14Implementation (Human Services) Act may be adopted in
15accordance with this Section by the agency charged with
16administering that provision, except that the 24-month
17limitation on the adoption of emergency rules and the
18provisions of Sections 5-115 and 5-125 do not apply to rules
19adopted under this subsection (j). The Department of Public Aid
20may also adopt rules under this subsection (j) necessary to
21administer the Illinois Public Aid Code and the Children's
22Health Insurance Program Act. The adoption of emergency rules
23authorized by this subsection (j) shall be deemed to be
24necessary for the public interest, safety, and welfare.
25    (k) In order to provide for the expeditious and timely
26implementation of the provisions of the State's fiscal year

 

 

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12006 budget, emergency rules to implement any provision of
2Public Act 94-48 or any other budget initiative for fiscal year
32006 may be adopted in accordance with this Section by the
4agency charged with administering that provision or
5initiative, except that the 24-month limitation on the adoption
6of emergency rules and the provisions of Sections 5-115 and
75-125 do not apply to rules adopted under this subsection (k).
8The Department of Healthcare and Family Services may also adopt
9rules under this subsection (k) necessary to administer the
10Illinois Public Aid Code, the Senior Citizens and Persons with
11Disabilities Property Tax Relief Act, the Senior Citizens and
12Disabled Persons Prescription Drug Discount Program Act (now
13the Illinois Prescription Drug Discount Program Act), and the
14Children's Health Insurance Program Act. The adoption of
15emergency rules authorized by this subsection (k) shall be
16deemed to be necessary for the public interest, safety, and
17welfare.
18    (l) In order to provide for the expeditious and timely
19implementation of the provisions of the State's fiscal year
202007 budget, the Department of Healthcare and Family Services
21may adopt emergency rules during fiscal year 2007, including
22rules effective July 1, 2007, in accordance with this
23subsection to the extent necessary to administer the
24Department's responsibilities with respect to amendments to
25the State plans and Illinois waivers approved by the federal
26Centers for Medicare and Medicaid Services necessitated by the

 

 

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1requirements of Title XIX and Title XXI of the federal Social
2Security Act. The adoption of emergency rules authorized by
3this subsection (l) shall be deemed to be necessary for the
4public interest, safety, and welfare.
5    (m) In order to provide for the expeditious and timely
6implementation of the provisions of the State's fiscal year
72008 budget, the Department of Healthcare and Family Services
8may adopt emergency rules during fiscal year 2008, including
9rules effective July 1, 2008, in accordance with this
10subsection to the extent necessary to administer the
11Department's responsibilities with respect to amendments to
12the State plans and Illinois waivers approved by the federal
13Centers for Medicare and Medicaid Services necessitated by the
14requirements of Title XIX and Title XXI of the federal Social
15Security Act. The adoption of emergency rules authorized by
16this subsection (m) shall be deemed to be necessary for the
17public interest, safety, and welfare.
18    (n) In order to provide for the expeditious and timely
19implementation of the provisions of the State's fiscal year
202010 budget, emergency rules to implement any provision of
21Public Act 96-45 or any other budget initiative authorized by
22the 96th General Assembly for fiscal year 2010 may be adopted
23in accordance with this Section by the agency charged with
24administering that provision or initiative. The adoption of
25emergency rules authorized by this subsection (n) shall be
26deemed to be necessary for the public interest, safety, and

 

 

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1welfare. The rulemaking authority granted in this subsection
2(n) shall apply only to rules promulgated during Fiscal Year
32010.
4    (o) In order to provide for the expeditious and timely
5implementation of the provisions of the State's fiscal year
62011 budget, emergency rules to implement any provision of
7Public Act 96-958 or any other budget initiative authorized by
8the 96th General Assembly for fiscal year 2011 may be adopted
9in accordance with this Section by the agency charged with
10administering that provision or initiative. The adoption of
11emergency rules authorized by this subsection (o) is deemed to
12be necessary for the public interest, safety, and welfare. The
13rulemaking authority granted in this subsection (o) applies
14only to rules promulgated on or after July 1, 2010 (the
15effective date of Public Act 96-958) through June 30, 2011.
16    (p) In order to provide for the expeditious and timely
17implementation of the provisions of Public Act 97-689,
18emergency rules to implement any provision of Public Act 97-689
19may be adopted in accordance with this subsection (p) by the
20agency charged with administering that provision or
21initiative. The 150-day limitation of the effective period of
22emergency rules does not apply to rules adopted under this
23subsection (p), and the effective period may continue through
24June 30, 2013. The 24-month limitation on the adoption of
25emergency rules does not apply to rules adopted under this
26subsection (p). The adoption of emergency rules authorized by

 

 

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1this subsection (p) is deemed to be necessary for the public
2interest, safety, and welfare.
3    (q) In order to provide for the expeditious and timely
4implementation of the provisions of Articles 7, 8, 9, 11, and
512 of Public Act 98-104, emergency rules to implement any
6provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
7may be adopted in accordance with this subsection (q) by the
8agency charged with administering that provision or
9initiative. The 24-month limitation on the adoption of
10emergency rules does not apply to rules adopted under this
11subsection (q). The adoption of emergency rules authorized by
12this subsection (q) is deemed to be necessary for the public
13interest, safety, and welfare.
14    (r) In order to provide for the expeditious and timely
15implementation of the provisions of Public Act 98-651,
16emergency rules to implement Public Act 98-651 may be adopted
17in accordance with this subsection (r) by the Department of
18Healthcare and Family Services. The 24-month limitation on the
19adoption of emergency rules does not apply to rules adopted
20under this subsection (r). The adoption of emergency rules
21authorized by this subsection (r) is deemed to be necessary for
22the public interest, safety, and welfare.
23    (s) In order to provide for the expeditious and timely
24implementation of the provisions of Sections 5-5b.1 and 5A-2 of
25the Illinois Public Aid Code, emergency rules to implement any
26provision of Section 5-5b.1 or Section 5A-2 of the Illinois

 

 

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1Public Aid Code may be adopted in accordance with this
2subsection (s) by the Department of Healthcare and Family
3Services. The rulemaking authority granted in this subsection
4(s) shall apply only to those rules adopted prior to July 1,
52015. Notwithstanding any other provision of this Section, any
6emergency rule adopted under this subsection (s) shall only
7apply to payments made for State fiscal year 2015. The adoption
8of emergency rules authorized by this subsection (s) is deemed
9to be necessary for the public interest, safety, and welfare.
10    (t) In order to provide for the expeditious and timely
11implementation of the provisions of Article II of Public Act
1299-6, emergency rules to implement the changes made by Article
13II of Public Act 99-6 to the Emergency Telephone System Act may
14be adopted in accordance with this subsection (t) by the
15Department of State Police. The rulemaking authority granted in
16this subsection (t) shall apply only to those rules adopted
17prior to July 1, 2016. The 24-month limitation on the adoption
18of emergency rules does not apply to rules adopted under this
19subsection (t). The adoption of emergency rules authorized by
20this subsection (t) is deemed to be necessary for the public
21interest, safety, and welfare.
22    (u) In order to provide for the expeditious and timely
23implementation of the provisions of the Burn Victims Relief
24Act, emergency rules to implement any provision of the Act may
25be adopted in accordance with this subsection (u) by the
26Department of Insurance. The rulemaking authority granted in

 

 

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1this subsection (u) shall apply only to those rules adopted
2prior to December 31, 2015. The adoption of emergency rules
3authorized by this subsection (u) is deemed to be necessary for
4the public interest, safety, and welfare.
5    (v) In order to provide for the expeditious and timely
6implementation of the provisions of Public Act 99-516,
7emergency rules to implement Public Act 99-516 may be adopted
8in accordance with this subsection (v) by the Department of
9Healthcare and Family Services. The 24-month limitation on the
10adoption of emergency rules does not apply to rules adopted
11under this subsection (v). The adoption of emergency rules
12authorized by this subsection (v) is deemed to be necessary for
13the public interest, safety, and welfare.
14    (w) In order to provide for the expeditious and timely
15implementation of the provisions of Public Act 99-796,
16emergency rules to implement the changes made by Public Act
1799-796 may be adopted in accordance with this subsection (w) by
18the Adjutant General. The adoption of emergency rules
19authorized by this subsection (w) is deemed to be necessary for
20the public interest, safety, and welfare.
21    (x) In order to provide for the expeditious and timely
22implementation of the provisions of Public Act 99-906,
23emergency rules to implement subsection (i) of Section 16-115D,
24subsection (g) of Section 16-128A, and subsection (a) of
25Section 16-128B of the Public Utilities Act may be adopted in
26accordance with this subsection (x) by the Illinois Commerce

 

 

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1Commission. The rulemaking authority granted in this
2subsection (x) shall apply only to those rules adopted within
3180 days after June 1, 2017 (the effective date of Public Act
499-906). The adoption of emergency rules authorized by this
5subsection (x) is deemed to be necessary for the public
6interest, safety, and welfare.
7    (y) In order to provide for the expeditious and timely
8implementation of the provisions of Public Act 100-23,
9emergency rules to implement the changes made by Public Act
10100-23 to Section 4.02 of the Illinois Act on the Aging,
11Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
12Section 55-30 of the Alcoholism and Other Drug Abuse and
13Dependency Act, and Sections 74 and 75 of the Mental Health and
14Developmental Disabilities Administrative Act may be adopted
15in accordance with this subsection (y) by the respective
16Department. The adoption of emergency rules authorized by this
17subsection (y) is deemed to be necessary for the public
18interest, safety, and welfare.
19    (z) In order to provide for the expeditious and timely
20implementation of the provisions of Public Act 100-554,
21emergency rules to implement the changes made by Public Act
22100-554 to Section 4.7 of the Lobbyist Registration Act may be
23adopted in accordance with this subsection (z) by the Secretary
24of State. The adoption of emergency rules authorized by this
25subsection (z) is deemed to be necessary for the public
26interest, safety, and welfare.

 

 

10100SB0690ham003- 34 -LRB101 04451 SMS 61572 a

1    (aa) In order to provide for the expeditious and timely
2initial implementation of the changes made to Articles 5, 5A,
312, and 14 of the Illinois Public Aid Code under the provisions
4of Public Act 100-581, the Department of Healthcare and Family
5Services may adopt emergency rules in accordance with this
6subsection (aa). The 24-month limitation on the adoption of
7emergency rules does not apply to rules to initially implement
8the changes made to Articles 5, 5A, 12, and 14 of the Illinois
9Public Aid Code adopted under this subsection (aa). The
10adoption of emergency rules authorized by this subsection (aa)
11is deemed to be necessary for the public interest, safety, and
12welfare.
13    (bb) In order to provide for the expeditious and timely
14implementation of the provisions of Public Act 100-587,
15emergency rules to implement the changes made by Public Act
16100-587 to Section 4.02 of the Illinois Act on the Aging,
17Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
18subsection (b) of Section 55-30 of the Alcoholism and Other
19Drug Abuse and Dependency Act, Section 5-104 of the Specialized
20Mental Health Rehabilitation Act of 2013, and Section 75 and
21subsection (b) of Section 74 of the Mental Health and
22Developmental Disabilities Administrative Act may be adopted
23in accordance with this subsection (bb) by the respective
24Department. The adoption of emergency rules authorized by this
25subsection (bb) is deemed to be necessary for the public
26interest, safety, and welfare.

 

 

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1    (cc) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 100-587,
3emergency rules may be adopted in accordance with this
4subsection (cc) to implement the changes made by Public Act
5100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
6Pension Code by the Board created under Article 14 of the Code;
7Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
8the Board created under Article 15 of the Code; and Sections
916-190.5 and 16-190.6 of the Illinois Pension Code by the Board
10created under Article 16 of the Code. The adoption of emergency
11rules authorized by this subsection (cc) is deemed to be
12necessary for the public interest, safety, and welfare.
13    (dd) In order to provide for the expeditious and timely
14implementation of the provisions of Public Act 100-864,
15emergency rules to implement the changes made by Public Act
16100-864 to Section 3.35 of the Newborn Metabolic Screening Act
17may be adopted in accordance with this subsection (dd) by the
18Secretary of State. The adoption of emergency rules authorized
19by this subsection (dd) is deemed to be necessary for the
20public interest, safety, and welfare.
21    (ee) In order to provide for the expeditious and timely
22implementation of the provisions of Public Act 100-1172 this
23amendatory Act of the 100th General Assembly, emergency rules
24implementing the Illinois Underground Natural Gas Storage
25Safety Act may be adopted in accordance with this subsection by
26the Department of Natural Resources. The adoption of emergency

 

 

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1rules authorized by this subsection is deemed to be necessary
2for the public interest, safety, and welfare.
3    (ff) (ee) In order to provide for the expeditious and
4timely initial implementation of the changes made to Articles
55A and 14 of the Illinois Public Aid Code under the provisions
6of Public Act 100-1181 this amendatory Act of the 100th General
7Assembly, the Department of Healthcare and Family Services may
8on a one-time-only basis adopt emergency rules in accordance
9with this subsection (ff) (ee). The 24-month limitation on the
10adoption of emergency rules does not apply to rules to
11initially implement the changes made to Articles 5A and 14 of
12the Illinois Public Aid Code adopted under this subsection (ff)
13(ee). The adoption of emergency rules authorized by this
14subsection (ff) (ee) is deemed to be necessary for the public
15interest, safety, and welfare.
16    (gg) (ff) In order to provide for the expeditious and
17timely implementation of the provisions of Public Act 101-1
18this amendatory Act of the 101st General Assembly, emergency
19rules may be adopted by the Department of Labor in accordance
20with this subsection (gg) (ff) to implement the changes made by
21Public Act 101-1 this amendatory Act of the 101st General
22Assembly to the Minimum Wage Law. The adoption of emergency
23rules authorized by this subsection (gg) (ff) is deemed to be
24necessary for the public interest, safety, and welfare.
25    (hh) In order to provide for the expeditious and timely
26implementation of the provisions of the Leveling the Playing

 

 

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1Field for Illinois Retail Act, emergency rules may be adopted
2in accordance with this subsection (hh) to implement the
3changes made by the Leveling the Playing Field for Illinois
4Retail Act. The adoption of emergency rules authorized by this
5subsection (hh) is deemed to be necessary for the public
6interest, safety, and welfare.
7(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
8100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
96-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
10100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
113-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
 
12    Section 15-10. The Department of Commerce and Economic
13Opportunity Law of the Civil Administrative Code of Illinois is
14amended by adding Section 605-1025 as follows:
 
15    (20 ILCS 605/605-1025 new)
16    Sec. 605-1025. Data center investment.
17    (a) The Department shall issue certificates of exemption
18from the Retailers' Occupation Tax Act, the Use Tax Act, the
19Service Use Tax Act, and the Service Occupation Tax Act, all
20locally-imposed retailers' occupation taxes administered and
21collected by the Department, the Chicago non-titled Use Tax,
22the Electricity Excise Tax Act, and a credit certification
23against the taxes imposed under subsections (a) and (b) of
24Section 201 of the Illinois Income Tax Act to qualifying

 

 

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1Illinois data centers.
2    (b) For taxable years beginning on or after January 1,
32019, the Department shall award credits against the taxes
4imposed under subsections (a) and (b) of Section 201 of the
5Illinois Income Tax Act as provided in Section 229 of the
6Illinois Income Tax Act.
7    (c) For purposes of this Section:
8        "Data center" means a facility: (1) whose primary
9    services are the storage, management, and processing of
10    digital data; and (2) that is used to house (i) computer
11    and network systems, including associated components such
12    as servers, network equipment and appliances,
13    telecommunications, and data storage systems, (ii) systems
14    for monitoring and managing infrastructure performance,
15    (iii) Internet-related equipment and services, (iv) data
16    communications connections, (v) environmental controls,
17    (vi) fire protection systems, and (vii) security systems
18    and services.
19        "Qualifying Illinois data center" means a new or
20    existing data center that:
21            (1) is located in the State of Illinois;
22            (2) in the case of an existing data center, made a
23        capital investment of at least $250,000,000
24        collectively by the data center operator and the
25        tenants of all of its data centers over the 60-month
26        period immediately prior to January 1, 2020 or

 

 

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1        committed to make a capital investment of at least
2        $250,000,000 over a 60-month period commencing before
3        January 1, 2020 and ending after January 1, 2020; or
4            (3) in the case of a new data center, makes a
5        capital investment of at least $250,000,000 over a
6        60-month period; and
7            (4) in the case of both existing and new data
8        centers, results in the creation of at least 20
9        full-time or full-time equivalent new jobs over a
10        period of 60 months by the data center operator and the
11        tenants of the data center, collectively, associated
12        with the operation or maintenance of the data center;
13        those jobs must have a total compensation equal to or
14        greater than 120% of the median wage paid to full-time
15        employees in the county where the data center is
16        located, as determined by the U.S. Bureau of Labor
17        Statistics; and
18            (5) is carbon neutral or attains certification
19        under one or more of the following green building
20        standards:
21                (A) BREEAM for New Construction or BREEAM
22            In-Use;
23                (B) ENERGY STAR;
24                (C) Envision;
25                (D) ISO 50001-energy management;
26                (E) LEED for Building Design and Construction

 

 

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1            or LEED for Operations and Maintenance;
2                (F) Green Globes for New Construction or Green
3            Globes for Existing Buildings;
4                (G) UL 3223; or
5                (H) an equivalent program approved by the
6            Department of Commerce and Economic Opportunity.
7        "Full-time equivalent job" means a job in which the new
8    employee works for the owner, operator, contractor, or
9    tenant of a data center or for a corporation under contract
10    with the owner, operator or tenant of a data center at a
11    rate of at least 35 hours per week. An owner, operator or
12    tenant who employs labor or services at a specific site or
13    facility under contract with another may declare one
14    full-time, permanent job for every 1,820 man hours worked
15    per year under that contract. Vacations, paid holidays, and
16    sick time are included in this computation. Overtime is not
17    considered a part of regular hours.
18        "Qualified tangible personal property" means:
19    electrical systems and equipment; climate control and
20    chilling equipment and systems; mechanical systems and
21    equipment; monitoring and secure systems; emergency
22    generators; hardware; computers; servers; data storage
23    devices; network connectivity equipment; racks; cabinets;
24    telecommunications cabling infrastructure; raised floor
25    systems; peripheral components or systems; software;
26    mechanical, electrical, or plumbing systems; battery

 

 

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1    systems; cooling systems and towers; temperature control
2    systems; other cabling; and other data center
3    infrastructure equipment and systems necessary to operate
4    qualified tangible personal property, including fixtures;
5    and component parts of any of the foregoing, including
6    installation, maintenance, repair, refurbishment, and
7    replacement of qualified tangible personal property to
8    generate, transform, transmit, distribute, or manage
9    electricity necessary to operate qualified tangible
10    personal property; and all other tangible personal
11    property that is essential to the operations of a computer
12    data center. "Qualified tangible personal property" also
13    includes building materials physically incorporated in to
14    the qualifying data center.
15    To document the exemption allowed under this Section, the
16retailer must obtain from the purchaser a copy of the
17certificate of eligibility issued by the Department.
18    (d) New and existing data centers seeking a certificate of
19exemption for new or existing facilities shall apply to the
20Department in the manner specified by the Department. The
21Department shall determine the duration of the certificate of
22exemption awarded under this Act. The duration of the
23certificate of exemption may not exceed 20 calendar years. The
24Department and any data center seeking the exemption, including
25a data center operator on behalf of itself and its tenants,
26must enter into a memorandum of understanding that at a minimum

 

 

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1provides:
2        (1) the details for determining the amount of capital
3    investment to be made;
4        (2) the number of new jobs created;
5        (3) the timeline for achieving the capital investment
6    and new job goals;
7        (4) the repayment obligation should those goals not be
8    achieved and any conditions under which repayment by the
9    qualifying data center or data center tenant claiming the
10    exemption will be required;
11        (5) the duration of the exemption; and
12        (6) other provisions as deemed necessary by the
13    Department.
14    (e) Beginning July 1, 2021, and each year thereafter, the
15Department shall annually report to the Governor and the
16General Assembly on the outcomes and effectiveness of this
17amendatory Act of the 101st General Assembly that shall include
18the following:
19        (1) the name of each recipient business;
20        (2) the location of the project;
21        (3) the estimated value of the credit;
22        (4) the number of new jobs and, if applicable, retained
23    jobs pledged as a result of the project; and
24        (5) whether or not the project is located in an
25    underserved area.
26    (f) New and existing data centers seeking a certificate of

 

 

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1exemption related to the rehabilitation or construction of data
2centers in the State shall require the contractor and all
3subcontractors to comply with the requirements of Section 30-22
4of the Illinois Procurement Code as they apply to responsible
5bidders and to present satisfactory evidence of that compliance
6to the Department.
7    (g) New and existing data centers seeking a certificate of
8exemption for the rehabilitation or construction of data
9centers in the State shall require the contractor to enter into
10a project labor agreement approved by the Department.
11    (h) Any qualifying data center issued a certificate of
12exemption under this Section must annually report to the
13Department the total data center tax benefits that are received
14by the business. Reports are due no later than May 31 of each
15year and shall cover the previous calendar year. The first
16report is for the 2019 calendar year and is due no later than
17May 31, 2020.
18    To the extent that a business issued a certificate of
19exemption under this Section has obtained an Enterprise Zone
20Building Materials Exemption Certificate or a High Impact
21Business Building Materials Exemption Certificate, no
22additional reporting for those building materials exemption
23benefits is required under this Section.
24    Failure to file a report under this subsection (h) may
25result in suspension or revocation of the certificate of
26exemption. The Department shall adopt rules governing

 

 

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1suspension or revocation of the certificate of exemption,
2including the length of suspension. Factors to be considered in
3determining whether a data center certificate of exemption
4shall be suspended or revoked include, but are not limited to,
5prior compliance with the reporting requirements, cooperation
6in discontinuing and correcting violations, the extent of the
7violation, and whether the violation was willful or
8inadvertent.
9    (i) The Department shall not issue any new certificates of
10exemption under the provisions of this Section after July 1,
112029. This sunset shall not affect any existing certificates of
12exemption in effect on July 1, 2029.
 
13    Section 15-20. The State Finance Act is amended by adding
14Sections 5.891, 5.893, and 5.894 as follows:
 
15    (30 ILCS 105/5.891 new)
16    Sec. 5.891. The Transportation Renewal Fund.
 
17    (30 ILCS 105/5.893 new)
18    Sec. 5.893. The Regional Transportation Authority Capital
19Improvement Fund.
 
20    (30 ILCS 105/5.894 new)
21    Sec. 5.894. The Downstate Mass Transportation Capital
22Improvement Fund.
 

 

 

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1    Section 15-25. The Illinois Income Tax Act is amended by
2adding Section 229 as follows:
 
3    (35 ILCS 5/229 new)
4    Sec. 229. Data center construction employment tax credit.
5    (a) A taxpayer who has been awarded a credit by the
6Department of Commerce and Economic Opportunity under Section
7605-1025 of the Department of Commerce and Economic Opportunity
8Law of the Civil Administrative Code of Illinois is entitled to
9a credit against the taxes imposed under subsections (a) and
10(b) of Section 201 of this Act. The amount of the credit shall
11be 20% of the wages paid during the taxable year to a full-time
12or part-time employee of a construction contractor employed by
13a certified data center if those wages are paid for the
14construction of a new data center in a geographic area that
15meets any one of the following criteria:
16        (1) the area has a poverty rate of at least 20%,
17    according to the latest federal decennial census;
18        (2) 75% or more of the children in the area participate
19    in the federal free lunch program, according to reported
20    statistics from the State Board of Education;
21        (3) 20% or more of the households in the area receive
22    assistance under the Supplemental Nutrition Assistance
23    Program (SNAP); or
24        (4) the area has an average unemployment rate, as

 

 

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1    determined by the Department of Employment Security, that
2    is more than 120% of the national unemployment average, as
3    determined by the U.S. Department of Labor, for a period of
4    at least 2 consecutive calendar years preceding the date of
5    the application.
6    If the taxpayer is a partnership, a Subchapter S
7corporation, or a limited liability company that has elected
8partnership tax treatment, the credit shall be allowed to the
9partners, shareholders, or members in accordance with the
10determination of income and distributive share of income under
11Sections 702 and 704 and subchapter S of the Internal Revenue
12Code, as applicable. The Department, in cooperation with the
13Department of Commerce and Economic Opportunity, shall adopt
14rules to enforce and administer this Section. This Section is
15exempt from the provisions of Section 250 of this Act.
16    (b) In no event shall a credit under this Section reduce
17the taxpayer's liability to less than zero. If the amount of
18the credit exceeds the tax liability for the year, the excess
19may be carried forward and applied to the tax liability of the
205 taxable years following the excess credit year. The tax
21credit shall be applied to the earliest year for which there is
22a tax liability. If there are credits for more than one year
23that are available to offset a liability, the earlier credit
24shall be applied first.
25    (c) No credit shall be allowed with respect to any
26certification for any taxable year ending after the revocation

 

 

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1of the certification by the Department of Commerce and Economic
2Opportunity. Upon receiving notification by the Department of
3Commerce and Economic Opportunity of the revocation of
4certification, the Department shall notify the taxpayer that no
5credit is allowed for any taxable year ending after the
6revocation date, as stated in such notification. If any credit
7has been allowed with respect to a certification for a taxable
8year ending after the revocation date, any refund paid to the
9taxpayer for that taxable year shall, to the extent of that
10credit allowed, be an erroneous refund within the meaning of
11Section 912 of this Act.
 
12    Section 15-30. The Use Tax Act is amended by changing
13Sections 2 and 3-5 as follows:
 
14    (35 ILCS 105/2)  (from Ch. 120, par. 439.2)
15    Sec. 2. Definitions.
16    "Use" means the exercise by any person of any right or
17power over tangible personal property incident to the ownership
18of that property, except that it does not include the sale of
19such property in any form as tangible personal property in the
20regular course of business to the extent that such property is
21not first subjected to a use for which it was purchased, and
22does not include the use of such property by its owner for
23demonstration purposes: Provided that the property purchased
24is deemed to be purchased for the purpose of resale, despite

 

 

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1first being used, to the extent to which it is resold as an
2ingredient of an intentionally produced product or by-product
3of manufacturing. "Use" does not mean the demonstration use or
4interim use of tangible personal property by a retailer before
5he sells that tangible personal property. For watercraft or
6aircraft, if the period of demonstration use or interim use by
7the retailer exceeds 18 months, the retailer shall pay on the
8retailers' original cost price the tax imposed by this Act, and
9no credit for that tax is permitted if the watercraft or
10aircraft is subsequently sold by the retailer. "Use" does not
11mean the physical incorporation of tangible personal property,
12to the extent not first subjected to a use for which it was
13purchased, as an ingredient or constituent, into other tangible
14personal property (a) which is sold in the regular course of
15business or (b) which the person incorporating such ingredient
16or constituent therein has undertaken at the time of such
17purchase to cause to be transported in interstate commerce to
18destinations outside the State of Illinois: Provided that the
19property purchased is deemed to be purchased for the purpose of
20resale, despite first being used, to the extent to which it is
21resold as an ingredient of an intentionally produced product or
22by-product of manufacturing.
23    "Watercraft" means a Class 2, Class 3, or Class 4
24watercraft as defined in Section 3-2 of the Boat Registration
25and Safety Act, a personal watercraft, or any boat equipped
26with an inboard motor.

 

 

10100SB0690ham003- 49 -LRB101 04451 SMS 61572 a

1    "Purchase at retail" means the acquisition of the ownership
2of or title to tangible personal property through a sale at
3retail.
4    "Purchaser" means anyone who, through a sale at retail,
5acquires the ownership of tangible personal property for a
6valuable consideration.
7    "Sale at retail" means any transfer of the ownership of or
8title to tangible personal property to a purchaser, for the
9purpose of use, and not for the purpose of resale in any form
10as tangible personal property to the extent not first subjected
11to a use for which it was purchased, for a valuable
12consideration: Provided that the property purchased is deemed
13to be purchased for the purpose of resale, despite first being
14used, to the extent to which it is resold as an ingredient of
15an intentionally produced product or by-product of
16manufacturing. For this purpose, slag produced as an incident
17to manufacturing pig iron or steel and sold is considered to be
18an intentionally produced by-product of manufacturing. "Sale
19at retail" includes any such transfer made for resale unless
20made in compliance with Section 2c of the Retailers' Occupation
21Tax Act, as incorporated by reference into Section 12 of this
22Act. Transactions whereby the possession of the property is
23transferred but the seller retains the title as security for
24payment of the selling price are sales.
25    "Sale at retail" shall also be construed to include any
26Illinois florist's sales transaction in which the purchase

 

 

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1order is received in Illinois by a florist and the sale is for
2use or consumption, but the Illinois florist has a florist in
3another state deliver the property to the purchaser or the
4purchaser's donee in such other state.
5    Nonreusable tangible personal property that is used by
6persons engaged in the business of operating a restaurant,
7cafeteria, or drive-in is a sale for resale when it is
8transferred to customers in the ordinary course of business as
9part of the sale of food or beverages and is used to deliver,
10package, or consume food or beverages, regardless of where
11consumption of the food or beverages occurs. Examples of those
12items include, but are not limited to nonreusable, paper and
13plastic cups, plates, baskets, boxes, sleeves, buckets or other
14containers, utensils, straws, placemats, napkins, doggie bags,
15and wrapping or packaging materials that are transferred to
16customers as part of the sale of food or beverages in the
17ordinary course of business.
18    The purchase, employment and transfer of such tangible
19personal property as newsprint and ink for the primary purpose
20of conveying news (with or without other information) is not a
21purchase, use or sale of tangible personal property.
22    "Selling price" means the consideration for a sale valued
23in money whether received in money or otherwise, including
24cash, credits, property other than as hereinafter provided, and
25services, but, prior to January 1, 2020, not including the
26value of or credit given for traded-in tangible personal

 

 

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1property where the item that is traded-in is of like kind and
2character as that which is being sold; beginning January 1,
32020, "selling price" includes the portion of the value of or
4credit given for traded-in motor vehicles of the First Division
5as defined in Section 1-146 of the Illinois Vehicle Code of
6like kind and character as that which is being sold that
7exceeds $10,000. "Selling price" , and shall be determined
8without any deduction on account of the cost of the property
9sold, the cost of materials used, labor or service cost or any
10other expense whatsoever, but does not include interest or
11finance charges which appear as separate items on the bill of
12sale or sales contract nor charges that are added to prices by
13sellers on account of the seller's tax liability under the
14"Retailers' Occupation Tax Act", or on account of the seller's
15duty to collect, from the purchaser, the tax that is imposed by
16this Act, or, except as otherwise provided with respect to any
17cigarette tax imposed by a home rule unit, on account of the
18seller's tax liability under any local occupation tax
19administered by the Department, or, except as otherwise
20provided with respect to any cigarette tax imposed by a home
21rule unit on account of the seller's duty to collect, from the
22purchasers, the tax that is imposed under any local use tax
23administered by the Department. Effective December 1, 1985,
24"selling price" shall include charges that are added to prices
25by sellers on account of the seller's tax liability under the
26Cigarette Tax Act, on account of the seller's duty to collect,

 

 

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1from the purchaser, the tax imposed under the Cigarette Use Tax
2Act, and on account of the seller's duty to collect, from the
3purchaser, any cigarette tax imposed by a home rule unit.
4    Notwithstanding any law to the contrary, for any motor
5vehicle, as defined in Section 1-146 of the Vehicle Code, that
6is sold on or after January 1, 2015 for the purpose of leasing
7the vehicle for a defined period that is longer than one year
8and (1) is a motor vehicle of the second division that: (A) is
9a self-contained motor vehicle designed or permanently
10converted to provide living quarters for recreational,
11camping, or travel use, with direct walk through access to the
12living quarters from the driver's seat; (B) is of the van
13configuration designed for the transportation of not less than
147 nor more than 16 passengers; or (C) has a gross vehicle
15weight rating of 8,000 pounds or less or (2) is a motor vehicle
16of the first division, "selling price" or "amount of sale"
17means the consideration received by the lessor pursuant to the
18lease contract, including amounts due at lease signing and all
19monthly or other regular payments charged over the term of the
20lease. Also included in the selling price is any amount
21received by the lessor from the lessee for the leased vehicle
22that is not calculated at the time the lease is executed,
23including, but not limited to, excess mileage charges and
24charges for excess wear and tear. For sales that occur in
25Illinois, with respect to any amount received by the lessor
26from the lessee for the leased vehicle that is not calculated

 

 

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1at the time the lease is executed, the lessor who purchased the
2motor vehicle does not incur the tax imposed by the Use Tax Act
3on those amounts, and the retailer who makes the retail sale of
4the motor vehicle to the lessor is not required to collect the
5tax imposed by this Act or to pay the tax imposed by the
6Retailers' Occupation Tax Act on those amounts. However, the
7lessor who purchased the motor vehicle assumes the liability
8for reporting and paying the tax on those amounts directly to
9the Department in the same form (Illinois Retailers' Occupation
10Tax, and local retailers' occupation taxes, if applicable) in
11which the retailer would have reported and paid such tax if the
12retailer had accounted for the tax to the Department. For
13amounts received by the lessor from the lessee that are not
14calculated at the time the lease is executed, the lessor must
15file the return and pay the tax to the Department by the due
16date otherwise required by this Act for returns other than
17transaction returns. If the retailer is entitled under this Act
18to a discount for collecting and remitting the tax imposed
19under this Act to the Department with respect to the sale of
20the motor vehicle to the lessor, then the right to the discount
21provided in this Act shall be transferred to the lessor with
22respect to the tax paid by the lessor for any amount received
23by the lessor from the lessee for the leased vehicle that is
24not calculated at the time the lease is executed; provided that
25the discount is only allowed if the return is timely filed and
26for amounts timely paid. The "selling price" of a motor vehicle

 

 

10100SB0690ham003- 54 -LRB101 04451 SMS 61572 a

1that is sold on or after January 1, 2015 for the purpose of
2leasing for a defined period of longer than one year shall not
3be reduced by the value of or credit given for traded-in
4tangible personal property owned by the lessor, nor shall it be
5reduced by the value of or credit given for traded-in tangible
6personal property owned by the lessee, regardless of whether
7the trade-in value thereof is assigned by the lessee to the
8lessor. In the case of a motor vehicle that is sold for the
9purpose of leasing for a defined period of longer than one
10year, the sale occurs at the time of the delivery of the
11vehicle, regardless of the due date of any lease payments. A
12lessor who incurs a Retailers' Occupation Tax liability on the
13sale of a motor vehicle coming off lease may not take a credit
14against that liability for the Use Tax the lessor paid upon the
15purchase of the motor vehicle (or for any tax the lessor paid
16with respect to any amount received by the lessor from the
17lessee for the leased vehicle that was not calculated at the
18time the lease was executed) if the selling price of the motor
19vehicle at the time of purchase was calculated using the
20definition of "selling price" as defined in this paragraph.
21Notwithstanding any other provision of this Act to the
22contrary, lessors shall file all returns and make all payments
23required under this paragraph to the Department by electronic
24means in the manner and form as required by the Department.
25This paragraph does not apply to leases of motor vehicles for
26which, at the time the lease is entered into, the term of the

 

 

10100SB0690ham003- 55 -LRB101 04451 SMS 61572 a

1lease is not a defined period, including leases with a defined
2initial period with the option to continue the lease on a
3month-to-month or other basis beyond the initial defined
4period.
5    The phrase "like kind and character" shall be liberally
6construed (including but not limited to any form of motor
7vehicle for any form of motor vehicle, or any kind of farm or
8agricultural implement for any other kind of farm or
9agricultural implement), while not including a kind of item
10which, if sold at retail by that retailer, would be exempt from
11retailers' occupation tax and use tax as an isolated or
12occasional sale.
13    "Department" means the Department of Revenue.
14    "Person" means any natural individual, firm, partnership,
15association, joint stock company, joint adventure, public or
16private corporation, limited liability company, or a receiver,
17executor, trustee, guardian or other representative appointed
18by order of any court.
19    "Retailer" means and includes every person engaged in the
20business of making sales at retail as defined in this Section.
21    A person who holds himself or herself out as being engaged
22(or who habitually engages) in selling tangible personal
23property at retail is a retailer hereunder with respect to such
24sales (and not primarily in a service occupation)
25notwithstanding the fact that such person designs and produces
26such tangible personal property on special order for the

 

 

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1purchaser and in such a way as to render the property of value
2only to such purchaser, if such tangible personal property so
3produced on special order serves substantially the same
4function as stock or standard items of tangible personal
5property that are sold at retail.
6    A person whose activities are organized and conducted
7primarily as a not-for-profit service enterprise, and who
8engages in selling tangible personal property at retail
9(whether to the public or merely to members and their guests)
10is a retailer with respect to such transactions, excepting only
11a person organized and operated exclusively for charitable,
12religious or educational purposes either (1), to the extent of
13sales by such person to its members, students, patients or
14inmates of tangible personal property to be used primarily for
15the purposes of such person, or (2), to the extent of sales by
16such person of tangible personal property which is not sold or
17offered for sale by persons organized for profit. The selling
18of school books and school supplies by schools at retail to
19students is not "primarily for the purposes of" the school
20which does such selling. This paragraph does not apply to nor
21subject to taxation occasional dinners, social or similar
22activities of a person organized and operated exclusively for
23charitable, religious or educational purposes, whether or not
24such activities are open to the public.
25    A person who is the recipient of a grant or contract under
26Title VII of the Older Americans Act of 1965 (P.L. 92-258) and

 

 

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1serves meals to participants in the federal Nutrition Program
2for the Elderly in return for contributions established in
3amount by the individual participant pursuant to a schedule of
4suggested fees as provided for in the federal Act is not a
5retailer under this Act with respect to such transactions.
6    Persons who engage in the business of transferring tangible
7personal property upon the redemption of trading stamps are
8retailers hereunder when engaged in such business.
9    The isolated or occasional sale of tangible personal
10property at retail by a person who does not hold himself out as
11being engaged (or who does not habitually engage) in selling
12such tangible personal property at retail or a sale through a
13bulk vending machine does not make such person a retailer
14hereunder. However, any person who is engaged in a business
15which is not subject to the tax imposed by the "Retailers'
16Occupation Tax Act" because of involving the sale of or a
17contract to sell real estate or a construction contract to
18improve real estate, but who, in the course of conducting such
19business, transfers tangible personal property to users or
20consumers in the finished form in which it was purchased, and
21which does not become real estate, under any provision of a
22construction contract or real estate sale or real estate sales
23agreement entered into with some other person arising out of or
24because of such nontaxable business, is a retailer to the
25extent of the value of the tangible personal property so
26transferred. If, in such transaction, a separate charge is made

 

 

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1for the tangible personal property so transferred, the value of
2such property, for the purposes of this Act, is the amount so
3separately charged, but not less than the cost of such property
4to the transferor; if no separate charge is made, the value of
5such property, for the purposes of this Act, is the cost to the
6transferor of such tangible personal property.
7    "Retailer maintaining a place of business in this State",
8or any like term, means and includes any of the following
9retailers:
10        (1) A retailer having or maintaining within this State,
11    directly or by a subsidiary, an office, distribution house,
12    sales house, warehouse or other place of business, or any
13    agent or other representative operating within this State
14    under the authority of the retailer or its subsidiary,
15    irrespective of whether such place of business or agent or
16    other representative is located here permanently or
17    temporarily, or whether such retailer or subsidiary is
18    licensed to do business in this State. However, the
19    ownership of property that is located at the premises of a
20    printer with which the retailer has contracted for printing
21    and that consists of the final printed product, property
22    that becomes a part of the final printed product, or copy
23    from which the printed product is produced shall not result
24    in the retailer being deemed to have or maintain an office,
25    distribution house, sales house, warehouse, or other place
26    of business within this State.

 

 

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1        (1.1) (Blank). A retailer having a contract with a
2    person located in this State under which the person, for a
3    commission or other consideration based upon the sale of
4    tangible personal property by the retailer, directly or
5    indirectly refers potential customers to the retailer by
6    providing to the potential customers a promotional code or
7    other mechanism that allows the retailer to track purchases
8    referred by such persons. Examples of mechanisms that allow
9    the retailer to track purchases referred by such persons
10    include but are not limited to the use of a link on the
11    person's Internet website, promotional codes distributed
12    through the person's hand-delivered or mailed material,
13    and promotional codes distributed by the person through
14    radio or other broadcast media. The provisions of this
15    paragraph (1.1) shall apply only if the cumulative gross
16    receipts from sales of tangible personal property by the
17    retailer to customers who are referred to the retailer by
18    all persons in this State under such contracts exceed
19    $10,000 during the preceding 4 quarterly periods ending on
20    the last day of March, June, September, and December. A
21    retailer meeting the requirements of this paragraph (1.1)
22    shall be presumed to be maintaining a place of business in
23    this State but may rebut this presumption by submitting
24    proof that the referrals or other activities pursued within
25    this State by such persons were not sufficient to meet the
26    nexus standards of the United States Constitution during

 

 

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1    the preceding 4 quarterly periods.
2        (1.2) (Blank). Beginning July 1, 2011, a retailer
3    having a contract with a person located in this State under
4    which:
5            (A) the retailer sells the same or substantially
6        similar line of products as the person located in this
7        State and does so using an identical or substantially
8        similar name, trade name, or trademark as the person
9        located in this State; and
10            (B) the retailer provides a commission or other
11        consideration to the person located in this State based
12        upon the sale of tangible personal property by the
13        retailer.
14    The provisions of this paragraph (1.2) shall apply only if
15    the cumulative gross receipts from sales of tangible
16    personal property by the retailer to customers in this
17    State under all such contracts exceed $10,000 during the
18    preceding 4 quarterly periods ending on the last day of
19    March, June, September, and December.
20        (2) (Blank). A retailer soliciting orders for tangible
21    personal property by means of a telecommunication or
22    television shopping system (which utilizes toll free
23    numbers) which is intended by the retailer to be broadcast
24    by cable television or other means of broadcasting, to
25    consumers located in this State.
26        (3) (Blank). A retailer, pursuant to a contract with a

 

 

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1    broadcaster or publisher located in this State, soliciting
2    orders for tangible personal property by means of
3    advertising which is disseminated primarily to consumers
4    located in this State and only secondarily to bordering
5    jurisdictions.
6        (4) (Blank). A retailer soliciting orders for tangible
7    personal property by mail if the solicitations are
8    substantial and recurring and if the retailer benefits from
9    any banking, financing, debt collection,
10    telecommunication, or marketing activities occurring in
11    this State or benefits from the location in this State of
12    authorized installation, servicing, or repair facilities.
13        (5) (Blank). A retailer that is owned or controlled by
14    the same interests that own or control any retailer
15    engaging in business in the same or similar line of
16    business in this State.
17        (6) (Blank). A retailer having a franchisee or licensee
18    operating under its trade name if the franchisee or
19    licensee is required to collect the tax under this Section.
20        (7) (Blank). A retailer, pursuant to a contract with a
21    cable television operator located in this State,
22    soliciting orders for tangible personal property by means
23    of advertising which is transmitted or distributed over a
24    cable television system in this State.
25        (8) (Blank). A retailer engaging in activities in
26    Illinois, which activities in the state in which the retail

 

 

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1    business engaging in such activities is located would
2    constitute maintaining a place of business in that state.
3        (9) Beginning October 1, 2018 through June 30, 2020, a
4    retailer making sales of tangible personal property to
5    purchasers in Illinois from outside of Illinois if:
6            (A) the cumulative gross receipts from sales of
7        tangible personal property to purchasers in Illinois
8        are $100,000 or more; or
9            (B) the retailer enters into 200 or more separate
10        transactions for the sale of tangible personal
11        property to purchasers in Illinois.
12        The retailer shall determine on a quarterly basis,
13    ending on the last day of March, June, September, and
14    December, whether he or she meets the criteria of either
15    subparagraph (A) or (B) of this paragraph (9) for the
16    preceding 12-month period. If the retailer meets the
17    criteria of either subparagraph (A) or (B) for a 12-month
18    period, he or she is considered a retailer maintaining a
19    place of business in this State and is required to collect
20    and remit the tax imposed under this Act and file returns
21    for one year. At the end of that one-year period, the
22    retailer shall determine whether the retailer met the
23    criteria of either subparagraph (A) or (B) during the
24    preceding 12-month period. If the retailer met the criteria
25    in either subparagraph (A) or (B) for the preceding
26    12-month period, he or she is considered a retailer

 

 

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1    maintaining a place of business in this State and is
2    required to collect and remit the tax imposed under this
3    Act and file returns for the subsequent year. If at the end
4    of a one-year period a retailer that was required to
5    collect and remit the tax imposed under this Act determines
6    that he or she did not meet the criteria in either
7    subparagraph (A) or (B) during the preceding 12-month
8    period, the retailer shall subsequently determine on a
9    quarterly basis, ending on the last day of March, June,
10    September, and December, whether he or she meets the
11    criteria of either subparagraph (A) or (B) for the
12    preceding 12-month period.
13    "Bulk vending machine" means a vending machine, containing
14unsorted confections, nuts, toys, or other items designed
15primarily to be used or played with by children which, when a
16coin or coins of a denomination not larger than $0.50 are
17inserted, are dispensed in equal portions, at random and
18without selection by the customer.
19(Source: P.A. 99-78, eff. 7-20-15; 100-587, eff. 6-4-18.)
 
20    (35 ILCS 105/3-5)
21    Sec. 3-5. Exemptions. Use of the following tangible
22personal property is exempt from the tax imposed by this Act:
23    (1) Personal property purchased from a corporation,
24society, association, foundation, institution, or
25organization, other than a limited liability company, that is

 

 

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1organized and operated as a not-for-profit service enterprise
2for the benefit of persons 65 years of age or older if the
3personal property was not purchased by the enterprise for the
4purpose of resale by the enterprise.
5    (2) Personal property purchased by a not-for-profit
6Illinois county fair association for use in conducting,
7operating, or promoting the county fair.
8    (3) Personal property purchased by a not-for-profit arts or
9cultural organization that establishes, by proof required by
10the Department by rule, that it has received an exemption under
11Section 501(c)(3) of the Internal Revenue Code and that is
12organized and operated primarily for the presentation or
13support of arts or cultural programming, activities, or
14services. These organizations include, but are not limited to,
15music and dramatic arts organizations such as symphony
16orchestras and theatrical groups, arts and cultural service
17organizations, local arts councils, visual arts organizations,
18and media arts organizations. On and after July 1, 2001 (the
19effective date of Public Act 92-35), however, an entity
20otherwise eligible for this exemption shall not make tax-free
21purchases unless it has an active identification number issued
22by the Department.
23    (4) Personal property purchased by a governmental body, by
24a corporation, society, association, foundation, or
25institution organized and operated exclusively for charitable,
26religious, or educational purposes, or by a not-for-profit

 

 

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1corporation, society, association, foundation, institution, or
2organization that has no compensated officers or employees and
3that is organized and operated primarily for the recreation of
4persons 55 years of age or older. A limited liability company
5may qualify for the exemption under this paragraph only if the
6limited liability company is organized and operated
7exclusively for educational purposes. On and after July 1,
81987, however, no entity otherwise eligible for this exemption
9shall make tax-free purchases unless it has an active exemption
10identification number issued by the Department.
11    (5) Until July 1, 2003, a passenger car that is a
12replacement vehicle to the extent that the purchase price of
13the car is subject to the Replacement Vehicle Tax.
14    (6) Until July 1, 2003 and beginning again on September 1,
152004 through August 30, 2014, graphic arts machinery and
16equipment, including repair and replacement parts, both new and
17used, and including that manufactured on special order,
18certified by the purchaser to be used primarily for graphic
19arts production, and including machinery and equipment
20purchased for lease. Equipment includes chemicals or chemicals
21acting as catalysts but only if the chemicals or chemicals
22acting as catalysts effect a direct and immediate change upon a
23graphic arts product. Beginning on July 1, 2017, graphic arts
24machinery and equipment is included in the manufacturing and
25assembling machinery and equipment exemption under paragraph
26(18).

 

 

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1    (7) Farm chemicals.
2    (8) Legal tender, currency, medallions, or gold or silver
3coinage issued by the State of Illinois, the government of the
4United States of America, or the government of any foreign
5country, and bullion.
6    (9) Personal property purchased from a teacher-sponsored
7student organization affiliated with an elementary or
8secondary school located in Illinois.
9    (10) A motor vehicle that is used for automobile renting,
10as defined in the Automobile Renting Occupation and Use Tax
11Act.
12    (11) Farm machinery and equipment, both new and used,
13including that manufactured on special order, certified by the
14purchaser to be used primarily for production agriculture or
15State or federal agricultural programs, including individual
16replacement parts for the machinery and equipment, including
17machinery and equipment purchased for lease, and including
18implements of husbandry defined in Section 1-130 of the
19Illinois Vehicle Code, farm machinery and agricultural
20chemical and fertilizer spreaders, and nurse wagons required to
21be registered under Section 3-809 of the Illinois Vehicle Code,
22but excluding other motor vehicles required to be registered
23under the Illinois Vehicle Code. Horticultural polyhouses or
24hoop houses used for propagating, growing, or overwintering
25plants shall be considered farm machinery and equipment under
26this item (11). Agricultural chemical tender tanks and dry

 

 

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1boxes shall include units sold separately from a motor vehicle
2required to be licensed and units sold mounted on a motor
3vehicle required to be licensed if the selling price of the
4tender is separately stated.
5    Farm machinery and equipment shall include precision
6farming equipment that is installed or purchased to be
7installed on farm machinery and equipment including, but not
8limited to, tractors, harvesters, sprayers, planters, seeders,
9or spreaders. Precision farming equipment includes, but is not
10limited to, soil testing sensors, computers, monitors,
11software, global positioning and mapping systems, and other
12such equipment.
13    Farm machinery and equipment also includes computers,
14sensors, software, and related equipment used primarily in the
15computer-assisted operation of production agriculture
16facilities, equipment, and activities such as, but not limited
17to, the collection, monitoring, and correlation of animal and
18crop data for the purpose of formulating animal diets and
19agricultural chemicals. This item (11) is exempt from the
20provisions of Section 3-90.
21    (12) Until June 30, 2013, fuel and petroleum products sold
22to or used by an air common carrier, certified by the carrier
23to be used for consumption, shipment, or storage in the conduct
24of its business as an air common carrier, for a flight destined
25for or returning from a location or locations outside the
26United States without regard to previous or subsequent domestic

 

 

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1stopovers.
2    Beginning July 1, 2013, fuel and petroleum products sold to
3or used by an air carrier, certified by the carrier to be used
4for consumption, shipment, or storage in the conduct of its
5business as an air common carrier, for a flight that (i) is
6engaged in foreign trade or is engaged in trade between the
7United States and any of its possessions and (ii) transports at
8least one individual or package for hire from the city of
9origination to the city of final destination on the same
10aircraft, without regard to a change in the flight number of
11that aircraft.
12    (13) Proceeds of mandatory service charges separately
13stated on customers' bills for the purchase and consumption of
14food and beverages purchased at retail from a retailer, to the
15extent that the proceeds of the service charge are in fact
16turned over as tips or as a substitute for tips to the
17employees who participate directly in preparing, serving,
18hosting or cleaning up the food or beverage function with
19respect to which the service charge is imposed.
20    (14) Until July 1, 2003, oil field exploration, drilling,
21and production equipment, including (i) rigs and parts of rigs,
22rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
23tubular goods, including casing and drill strings, (iii) pumps
24and pump-jack units, (iv) storage tanks and flow lines, (v) any
25individual replacement part for oil field exploration,
26drilling, and production equipment, and (vi) machinery and

 

 

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1equipment purchased for lease; but excluding motor vehicles
2required to be registered under the Illinois Vehicle Code.
3    (15) Photoprocessing machinery and equipment, including
4repair and replacement parts, both new and used, including that
5manufactured on special order, certified by the purchaser to be
6used primarily for photoprocessing, and including
7photoprocessing machinery and equipment purchased for lease.
8    (16) Until July 1, 2023, coal and aggregate exploration,
9mining, off-highway hauling, processing, maintenance, and
10reclamation equipment, including replacement parts and
11equipment, and including equipment purchased for lease, but
12excluding motor vehicles required to be registered under the
13Illinois Vehicle Code. The changes made to this Section by
14Public Act 97-767 apply on and after July 1, 2003, but no claim
15for credit or refund is allowed on or after August 16, 2013
16(the effective date of Public Act 98-456) for such taxes paid
17during the period beginning July 1, 2003 and ending on August
1816, 2013 (the effective date of Public Act 98-456).
19    (17) Until July 1, 2003, distillation machinery and
20equipment, sold as a unit or kit, assembled or installed by the
21retailer, certified by the user to be used only for the
22production of ethyl alcohol that will be used for consumption
23as motor fuel or as a component of motor fuel for the personal
24use of the user, and not subject to sale or resale.
25    (18) Manufacturing and assembling machinery and equipment
26used primarily in the process of manufacturing or assembling

 

 

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1tangible personal property for wholesale or retail sale or
2lease, whether that sale or lease is made directly by the
3manufacturer or by some other person, whether the materials
4used in the process are owned by the manufacturer or some other
5person, or whether that sale or lease is made apart from or as
6an incident to the seller's engaging in the service occupation
7of producing machines, tools, dies, jigs, patterns, gauges, or
8other similar items of no commercial value on special order for
9a particular purchaser. The exemption provided by this
10paragraph (18) does not include machinery and equipment used in
11(i) the generation of electricity for wholesale or retail sale;
12(ii) the generation or treatment of natural or artificial gas
13for wholesale or retail sale that is delivered to customers
14through pipes, pipelines, or mains; or (iii) the treatment of
15water for wholesale or retail sale that is delivered to
16customers through pipes, pipelines, or mains. The provisions of
17Public Act 98-583 are declaratory of existing law as to the
18meaning and scope of this exemption. Beginning on July 1, 2017,
19the exemption provided by this paragraph (18) includes, but is
20not limited to, graphic arts machinery and equipment, as
21defined in paragraph (6) of this Section.
22    (19) Personal property delivered to a purchaser or
23purchaser's donee inside Illinois when the purchase order for
24that personal property was received by a florist located
25outside Illinois who has a florist located inside Illinois
26deliver the personal property.

 

 

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1    (20) Semen used for artificial insemination of livestock
2for direct agricultural production.
3    (21) Horses, or interests in horses, registered with and
4meeting the requirements of any of the Arabian Horse Club
5Registry of America, Appaloosa Horse Club, American Quarter
6Horse Association, United States Trotting Association, or
7Jockey Club, as appropriate, used for purposes of breeding or
8racing for prizes. This item (21) is exempt from the provisions
9of Section 3-90, and the exemption provided for under this item
10(21) applies for all periods beginning May 30, 1995, but no
11claim for credit or refund is allowed on or after January 1,
122008 for such taxes paid during the period beginning May 30,
132000 and ending on January 1, 2008.
14    (22) Computers and communications equipment utilized for
15any hospital purpose and equipment used in the diagnosis,
16analysis, or treatment of hospital patients purchased by a
17lessor who leases the equipment, under a lease of one year or
18longer executed or in effect at the time the lessor would
19otherwise be subject to the tax imposed by this Act, to a
20hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of the
22Retailers' Occupation Tax Act. If the equipment is leased in a
23manner that does not qualify for this exemption or is used in
24any other non-exempt manner, the lessor shall be liable for the
25tax imposed under this Act or the Service Use Tax Act, as the
26case may be, based on the fair market value of the property at

 

 

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1the time the non-qualifying use occurs. No lessor shall collect
2or attempt to collect an amount (however designated) that
3purports to reimburse that lessor for the tax imposed by this
4Act or the Service Use Tax Act, as the case may be, if the tax
5has not been paid by the lessor. If a lessor improperly
6collects any such amount from the lessee, the lessee shall have
7a legal right to claim a refund of that amount from the lessor.
8If, however, that amount is not refunded to the lessee for any
9reason, the lessor is liable to pay that amount to the
10Department.
11    (23) Personal property purchased by a lessor who leases the
12property, under a lease of one year or longer executed or in
13effect at the time the lessor would otherwise be subject to the
14tax imposed by this Act, to a governmental body that has been
15issued an active sales tax exemption identification number by
16the Department under Section 1g of the Retailers' Occupation
17Tax Act. If the property is leased in a manner that does not
18qualify for this exemption or used in any other non-exempt
19manner, the lessor shall be liable for the tax imposed under
20this Act or the Service Use Tax Act, as the case may be, based
21on the fair market value of the property at the time the
22non-qualifying use occurs. No lessor shall collect or attempt
23to collect an amount (however designated) that purports to
24reimburse that lessor for the tax imposed by this Act or the
25Service Use Tax Act, as the case may be, if the tax has not been
26paid by the lessor. If a lessor improperly collects any such

 

 

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1amount from the lessee, the lessee shall have a legal right to
2claim a refund of that amount from the lessor. If, however,
3that amount is not refunded to the lessee for any reason, the
4lessor is liable to pay that amount to the Department.
5    (24) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is donated for
8disaster relief to be used in a State or federally declared
9disaster area in Illinois or bordering Illinois by a
10manufacturer or retailer that is registered in this State to a
11corporation, society, association, foundation, or institution
12that has been issued a sales tax exemption identification
13number by the Department that assists victims of the disaster
14who reside within the declared disaster area.
15    (25) Beginning with taxable years ending on or after
16December 31, 1995 and ending with taxable years ending on or
17before December 31, 2004, personal property that is used in the
18performance of infrastructure repairs in this State, including
19but not limited to municipal roads and streets, access roads,
20bridges, sidewalks, waste disposal systems, water and sewer
21line extensions, water distribution and purification
22facilities, storm water drainage and retention facilities, and
23sewage treatment facilities, resulting from a State or
24federally declared disaster in Illinois or bordering Illinois
25when such repairs are initiated on facilities located in the
26declared disaster area within 6 months after the disaster.

 

 

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1    (26) Beginning July 1, 1999, game or game birds purchased
2at a "game breeding and hunting preserve area" as that term is
3used in the Wildlife Code. This paragraph is exempt from the
4provisions of Section 3-90.
5    (27) A motor vehicle, as that term is defined in Section
61-146 of the Illinois Vehicle Code, that is donated to a
7corporation, limited liability company, society, association,
8foundation, or institution that is determined by the Department
9to be organized and operated exclusively for educational
10purposes. For purposes of this exemption, "a corporation,
11limited liability company, society, association, foundation,
12or institution organized and operated exclusively for
13educational purposes" means all tax-supported public schools,
14private schools that offer systematic instruction in useful
15branches of learning by methods common to public schools and
16that compare favorably in their scope and intensity with the
17course of study presented in tax-supported schools, and
18vocational or technical schools or institutes organized and
19operated exclusively to provide a course of study of not less
20than 6 weeks duration and designed to prepare individuals to
21follow a trade or to pursue a manual, technical, mechanical,
22industrial, business, or commercial occupation.
23    (28) Beginning January 1, 2000, personal property,
24including food, purchased through fundraising events for the
25benefit of a public or private elementary or secondary school,
26a group of those schools, or one or more school districts if

 

 

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1the events are sponsored by an entity recognized by the school
2district that consists primarily of volunteers and includes
3parents and teachers of the school children. This paragraph
4does not apply to fundraising events (i) for the benefit of
5private home instruction or (ii) for which the fundraising
6entity purchases the personal property sold at the events from
7another individual or entity that sold the property for the
8purpose of resale by the fundraising entity and that profits
9from the sale to the fundraising entity. This paragraph is
10exempt from the provisions of Section 3-90.
11    (29) Beginning January 1, 2000 and through December 31,
122001, new or used automatic vending machines that prepare and
13serve hot food and beverages, including coffee, soup, and other
14items, and replacement parts for these machines. Beginning
15January 1, 2002 and through June 30, 2003, machines and parts
16for machines used in commercial, coin-operated amusement and
17vending business if a use or occupation tax is paid on the
18gross receipts derived from the use of the commercial,
19coin-operated amusement and vending machines. This paragraph
20is exempt from the provisions of Section 3-90.
21    (30) Beginning January 1, 2001 and through June 30, 2016,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages, soft
24drinks, and food that has been prepared for immediate
25consumption) and prescription and nonprescription medicines,
26drugs, medical appliances, and insulin, urine testing

 

 

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1materials, syringes, and needles used by diabetics, for human
2use, when purchased for use by a person receiving medical
3assistance under Article V of the Illinois Public Aid Code who
4resides in a licensed long-term care facility, as defined in
5the Nursing Home Care Act, or in a licensed facility as defined
6in the ID/DD Community Care Act, the MC/DD Act, or the
7Specialized Mental Health Rehabilitation Act of 2013.
8    (31) Beginning on August 2, 2001 (the effective date of
9Public Act 92-227), computers and communications equipment
10utilized for any hospital purpose and equipment used in the
11diagnosis, analysis, or treatment of hospital patients
12purchased by a lessor who leases the equipment, under a lease
13of one year or longer executed or in effect at the time the
14lessor would otherwise be subject to the tax imposed by this
15Act, to a hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act. If the equipment is leased in a
18manner that does not qualify for this exemption or is used in
19any other nonexempt manner, the lessor shall be liable for the
20tax imposed under this Act or the Service Use Tax Act, as the
21case may be, based on the fair market value of the property at
22the time the nonqualifying use occurs. No lessor shall collect
23or attempt to collect an amount (however designated) that
24purports to reimburse that lessor for the tax imposed by this
25Act or the Service Use Tax Act, as the case may be, if the tax
26has not been paid by the lessor. If a lessor improperly

 

 

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1collects any such amount from the lessee, the lessee shall have
2a legal right to claim a refund of that amount from the lessor.
3If, however, that amount is not refunded to the lessee for any
4reason, the lessor is liable to pay that amount to the
5Department. This paragraph is exempt from the provisions of
6Section 3-90.
7    (32) Beginning on August 2, 2001 (the effective date of
8Public Act 92-227), personal property purchased by a lessor who
9leases the property, under a lease of one year or longer
10executed or in effect at the time the lessor would otherwise be
11subject to the tax imposed by this Act, to a governmental body
12that has been issued an active sales tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. If the property is leased in a
15manner that does not qualify for this exemption or used in any
16other nonexempt manner, the lessor shall be liable for the tax
17imposed under this Act or the Service Use Tax Act, as the case
18may be, based on the fair market value of the property at the
19time the nonqualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that purports
21to reimburse that lessor for the tax imposed by this Act or the
22Service Use Tax Act, as the case may be, if the tax has not been
23paid by the lessor. If a lessor improperly collects any such
24amount from the lessee, the lessee shall have a legal right to
25claim a refund of that amount from the lessor. If, however,
26that amount is not refunded to the lessee for any reason, the

 

 

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1lessor is liable to pay that amount to the Department. This
2paragraph is exempt from the provisions of Section 3-90.
3    (33) On and after July 1, 2003 and through June 30, 2004,
4the use in this State of motor vehicles of the second division
5with a gross vehicle weight in excess of 8,000 pounds and that
6are subject to the commercial distribution fee imposed under
7Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
81, 2004 and through June 30, 2005, the use in this State of
9motor vehicles of the second division: (i) with a gross vehicle
10weight rating in excess of 8,000 pounds; (ii) that are subject
11to the commercial distribution fee imposed under Section
123-815.1 of the Illinois Vehicle Code; and (iii) that are
13primarily used for commercial purposes. Through June 30, 2005,
14this exemption applies to repair and replacement parts added
15after the initial purchase of such a motor vehicle if that
16motor vehicle is used in a manner that would qualify for the
17rolling stock exemption otherwise provided for in this Act. For
18purposes of this paragraph, the term "used for commercial
19purposes" means the transportation of persons or property in
20furtherance of any commercial or industrial enterprise,
21whether for-hire or not.
22    (34) Beginning January 1, 2008, tangible personal property
23used in the construction or maintenance of a community water
24supply, as defined under Section 3.145 of the Environmental
25Protection Act, that is operated by a not-for-profit
26corporation that holds a valid water supply permit issued under

 

 

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1Title IV of the Environmental Protection Act. This paragraph is
2exempt from the provisions of Section 3-90.
3    (35) Beginning January 1, 2010, materials, parts,
4equipment, components, and furnishings incorporated into or
5upon an aircraft as part of the modification, refurbishment,
6completion, replacement, repair, or maintenance of the
7aircraft. This exemption includes consumable supplies used in
8the modification, refurbishment, completion, replacement,
9repair, and maintenance of aircraft, but excludes any
10materials, parts, equipment, components, and consumable
11supplies used in the modification, replacement, repair, and
12maintenance of aircraft engines or power plants, whether such
13engines or power plants are installed or uninstalled upon any
14such aircraft. "Consumable supplies" include, but are not
15limited to, adhesive, tape, sandpaper, general purpose
16lubricants, cleaning solution, latex gloves, and protective
17films. This exemption applies only to the use of qualifying
18tangible personal property by persons who modify, refurbish,
19complete, repair, replace, or maintain aircraft and who (i)
20hold an Air Agency Certificate and are empowered to operate an
21approved repair station by the Federal Aviation
22Administration, (ii) have a Class IV Rating, and (iii) conduct
23operations in accordance with Part 145 of the Federal Aviation
24Regulations. The exemption does not include aircraft operated
25by a commercial air carrier providing scheduled passenger air
26service pursuant to authority issued under Part 121 or Part 129

 

 

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1of the Federal Aviation Regulations. The changes made to this
2paragraph (35) by Public Act 98-534 are declarative of existing
3law.
4    (36) Tangible personal property purchased by a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt instruments
13issued by the public-facilities corporation in connection with
14the development of the municipal convention hall. This
15exemption includes existing public-facilities corporations as
16provided in Section 11-65-25 of the Illinois Municipal Code.
17This paragraph is exempt from the provisions of Section 3-90.
18    (37) Beginning January 1, 2017, menstrual pads, tampons,
19and menstrual cups.
20    (38) Merchandise that is subject to the Rental Purchase
21Agreement Occupation and Use Tax. The purchaser must certify
22that the item is purchased to be rented subject to a rental
23purchase agreement, as defined in the Rental Purchase Agreement
24Act, and provide proof of registration under the Rental
25Purchase Agreement Occupation and Use Tax Act. This paragraph
26is exempt from the provisions of Section 3-90.

 

 

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1    (39) Tangible personal property purchased by a purchaser
2who is exempt from the tax imposed by this Act by operation of
3federal law. This paragraph is exempt from the provisions of
4Section 3-90.
5    (40) Qualified tangible personal property used in the
6construction or operation of a data center that has been
7granted a certificate of exemption by the Department of
8Commerce and Economic Opportunity, whether that tangible
9personal property is purchased by the owner, operator, or
10tenant of the data center or by a contractor or subcontractor
11of the owner, operator, or tenant. Data centers that would have
12qualified for a certificate of exemption prior to January 1,
132020 had this amendatory Act of the 101st General Assembly been
14in effect, may apply for and obtain an exemption for subsequent
15purchases of computer equipment or enabling software purchased
16or leased to upgrade, supplement, or replace computer equipment
17or enabling software purchased or leased in the original
18investment that would have qualified.
19    The Department of Commerce and Economic Opportunity shall
20grant a certificate of exemption under this item (40) to
21qualified data centers as defined by Section 605-1025 of the
22Department of Commerce and Economic Opportunity Law of the
23Civil Administrative Code of Illinois.
24    For the purposes of this item (40):
25        "Data center" means a building or a series of buildings
26    rehabilitated or constructed to house working servers in

 

 

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1    one physical location or multiple sites within the State of
2    Illinois.
3        "Qualified tangible personal property" means:
4    electrical systems and equipment; climate control and
5    chilling equipment and systems; mechanical systems and
6    equipment; monitoring and secure systems; emergency
7    generators; hardware; computers; servers; data storage
8    devices; network connectivity equipment; racks; cabinets;
9    telecommunications cabling infrastructure; raised floor
10    systems; peripheral components or systems; software;
11    mechanical, electrical, or plumbing systems; battery
12    systems; cooling systems and towers; temperature control
13    systems; other cabling; and other data center
14    infrastructure equipment and systems necessary to operate
15    qualified tangible personal property, including fixtures;
16    and component parts of any of the foregoing, including
17    installation, maintenance, repair, refurbishment, and
18    replacement of qualified tangible personal property to
19    generate, transform, transmit, distribute, or manage
20    electricity necessary to operate qualified tangible
21    personal property; and all other tangible personal
22    property that is essential to the operations of a computer
23    data center. The term "qualified tangible personal
24    property" also includes building materials physically
25    incorporated in to the qualifying data center. To document
26    the exemption allowed under this Section, the retailer must

 

 

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1    obtain from the purchaser a copy of the certificate of
2    eligibility issued by the Department of Commerce and
3    Economic Opportunity.
4    This item (40) is exempt from the provisions of Section
53-90.
6(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
7100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.
86-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised
91-8-19.)
 
10    Section 15-35. The Service Use Tax Act is amended by
11changing Section 3-5 as follows:
 
12    (35 ILCS 110/3-5)
13    Sec. 3-5. Exemptions. Use of the following tangible
14personal property is exempt from the tax imposed by this Act:
15    (1) Personal property purchased from a corporation,
16society, association, foundation, institution, or
17organization, other than a limited liability company, that is
18organized and operated as a not-for-profit service enterprise
19for the benefit of persons 65 years of age or older if the
20personal property was not purchased by the enterprise for the
21purpose of resale by the enterprise.
22    (2) Personal property purchased by a non-profit Illinois
23county fair association for use in conducting, operating, or
24promoting the county fair.

 

 

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1    (3) Personal property purchased by a not-for-profit arts or
2cultural organization that establishes, by proof required by
3the Department by rule, that it has received an exemption under
4Section 501(c)(3) of the Internal Revenue Code and that is
5organized and operated primarily for the presentation or
6support of arts or cultural programming, activities, or
7services. These organizations include, but are not limited to,
8music and dramatic arts organizations such as symphony
9orchestras and theatrical groups, arts and cultural service
10organizations, local arts councils, visual arts organizations,
11and media arts organizations. On and after July 1, 2001 (the
12effective date of Public Act 92-35) this amendatory Act of the
1392nd General Assembly, however, an entity otherwise eligible
14for this exemption shall not make tax-free purchases unless it
15has an active identification number issued by the Department.
16    (4) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (5) Until July 1, 2003 and beginning again on September 1,
212004 through August 30, 2014, graphic arts machinery and
22equipment, including repair and replacement parts, both new and
23used, and including that manufactured on special order or
24purchased for lease, certified by the purchaser to be used
25primarily for graphic arts production. Equipment includes
26chemicals or chemicals acting as catalysts but only if the

 

 

10100SB0690ham003- 85 -LRB101 04451 SMS 61572 a

1chemicals or chemicals acting as catalysts effect a direct and
2immediate change upon a graphic arts product. Beginning on July
31, 2017, graphic arts machinery and equipment is included in
4the manufacturing and assembling machinery and equipment
5exemption under Section 2 of this Act.
6    (6) Personal property purchased from a teacher-sponsored
7student organization affiliated with an elementary or
8secondary school located in Illinois.
9    (7) Farm machinery and equipment, both new and used,
10including that manufactured on special order, certified by the
11purchaser to be used primarily for production agriculture or
12State or federal agricultural programs, including individual
13replacement parts for the machinery and equipment, including
14machinery and equipment purchased for lease, and including
15implements of husbandry defined in Section 1-130 of the
16Illinois Vehicle Code, farm machinery and agricultural
17chemical and fertilizer spreaders, and nurse wagons required to
18be registered under Section 3-809 of the Illinois Vehicle Code,
19but excluding other motor vehicles required to be registered
20under the Illinois Vehicle Code. Horticultural polyhouses or
21hoop houses used for propagating, growing, or overwintering
22plants shall be considered farm machinery and equipment under
23this item (7). Agricultural chemical tender tanks and dry boxes
24shall include units sold separately from a motor vehicle
25required to be licensed and units sold mounted on a motor
26vehicle required to be licensed if the selling price of the

 

 

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1tender is separately stated.
2    Farm machinery and equipment shall include precision
3farming equipment that is installed or purchased to be
4installed on farm machinery and equipment including, but not
5limited to, tractors, harvesters, sprayers, planters, seeders,
6or spreaders. Precision farming equipment includes, but is not
7limited to, soil testing sensors, computers, monitors,
8software, global positioning and mapping systems, and other
9such equipment.
10    Farm machinery and equipment also includes computers,
11sensors, software, and related equipment used primarily in the
12computer-assisted operation of production agriculture
13facilities, equipment, and activities such as, but not limited
14to, the collection, monitoring, and correlation of animal and
15crop data for the purpose of formulating animal diets and
16agricultural chemicals. This item (7) is exempt from the
17provisions of Section 3-75.
18    (8) Until June 30, 2013, fuel and petroleum products sold
19to or used by an air common carrier, certified by the carrier
20to be used for consumption, shipment, or storage in the conduct
21of its business as an air common carrier, for a flight destined
22for or returning from a location or locations outside the
23United States without regard to previous or subsequent domestic
24stopovers.
25    Beginning July 1, 2013, fuel and petroleum products sold to
26or used by an air carrier, certified by the carrier to be used

 

 

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1for consumption, shipment, or storage in the conduct of its
2business as an air common carrier, for a flight that (i) is
3engaged in foreign trade or is engaged in trade between the
4United States and any of its possessions and (ii) transports at
5least one individual or package for hire from the city of
6origination to the city of final destination on the same
7aircraft, without regard to a change in the flight number of
8that aircraft.
9    (9) Proceeds of mandatory service charges separately
10stated on customers' bills for the purchase and consumption of
11food and beverages acquired as an incident to the purchase of a
12service from a serviceman, to the extent that the proceeds of
13the service charge are in fact turned over as tips or as a
14substitute for tips to the employees who participate directly
15in preparing, serving, hosting or cleaning up the food or
16beverage function with respect to which the service charge is
17imposed.
18    (10) Until July 1, 2003, oil field exploration, drilling,
19and production equipment, including (i) rigs and parts of rigs,
20rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
21tubular goods, including casing and drill strings, (iii) pumps
22and pump-jack units, (iv) storage tanks and flow lines, (v) any
23individual replacement part for oil field exploration,
24drilling, and production equipment, and (vi) machinery and
25equipment purchased for lease; but excluding motor vehicles
26required to be registered under the Illinois Vehicle Code.

 

 

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1    (11) Proceeds from the sale of photoprocessing machinery
2and equipment, including repair and replacement parts, both new
3and used, including that manufactured on special order,
4certified by the purchaser to be used primarily for
5photoprocessing, and including photoprocessing machinery and
6equipment purchased for lease.
7    (12) Until July 1, 2023, coal and aggregate exploration,
8mining, off-highway hauling, processing, maintenance, and
9reclamation equipment, including replacement parts and
10equipment, and including equipment purchased for lease, but
11excluding motor vehicles required to be registered under the
12Illinois Vehicle Code. The changes made to this Section by
13Public Act 97-767 apply on and after July 1, 2003, but no claim
14for credit or refund is allowed on or after August 16, 2013
15(the effective date of Public Act 98-456) for such taxes paid
16during the period beginning July 1, 2003 and ending on August
1716, 2013 (the effective date of Public Act 98-456).
18    (13) Semen used for artificial insemination of livestock
19for direct agricultural production.
20    (14) Horses, or interests in horses, registered with and
21meeting the requirements of any of the Arabian Horse Club
22Registry of America, Appaloosa Horse Club, American Quarter
23Horse Association, United States Trotting Association, or
24Jockey Club, as appropriate, used for purposes of breeding or
25racing for prizes. This item (14) is exempt from the provisions
26of Section 3-75, and the exemption provided for under this item

 

 

10100SB0690ham003- 89 -LRB101 04451 SMS 61572 a

1(14) applies for all periods beginning May 30, 1995, but no
2claim for credit or refund is allowed on or after January 1,
32008 (the effective date of Public Act 95-88) this amendatory
4Act of the 95th General Assembly for such taxes paid during the
5period beginning May 30, 2000 and ending on January 1, 2008
6(the effective date of Public Act 95-88) this amendatory Act of
7the 95th General Assembly.
8    (15) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients purchased by a
11lessor who leases the equipment, under a lease of one year or
12longer executed or in effect at the time the lessor would
13otherwise be subject to the tax imposed by this Act, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of the
16Retailers' Occupation Tax Act. If the equipment is leased in a
17manner that does not qualify for this exemption or is used in
18any other non-exempt manner, the lessor shall be liable for the
19tax imposed under this Act or the Use Tax Act, as the case may
20be, based on the fair market value of the property at the time
21the non-qualifying use occurs. No lessor shall collect or
22attempt to collect an amount (however designated) that purports
23to reimburse that lessor for the tax imposed by this Act or the
24Use Tax Act, as the case may be, if the tax has not been paid by
25the lessor. If a lessor improperly collects any such amount
26from the lessee, the lessee shall have a legal right to claim a

 

 

10100SB0690ham003- 90 -LRB101 04451 SMS 61572 a

1refund of that amount from the lessor. If, however, that amount
2is not refunded to the lessee for any reason, the lessor is
3liable to pay that amount to the Department.
4    (16) Personal property purchased by a lessor who leases the
5property, under a lease of one year or longer executed or in
6effect at the time the lessor would otherwise be subject to the
7tax imposed by this Act, to a governmental body that has been
8issued an active tax exemption identification number by the
9Department under Section 1g of the Retailers' Occupation Tax
10Act. If the property is leased in a manner that does not
11qualify for this exemption or is used in any other non-exempt
12manner, the lessor shall be liable for the tax imposed under
13this Act or the Use Tax Act, as the case may be, based on the
14fair market value of the property at the time the
15non-qualifying use occurs. No lessor shall collect or attempt
16to collect an amount (however designated) that purports to
17reimburse that lessor for the tax imposed by this Act or the
18Use Tax Act, as the case may be, if the tax has not been paid by
19the lessor. If a lessor improperly collects any such amount
20from the lessee, the lessee shall have a legal right to claim a
21refund of that amount from the lessor. If, however, that amount
22is not refunded to the lessee for any reason, the lessor is
23liable to pay that amount to the Department.
24    (17) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is donated for

 

 

10100SB0690ham003- 91 -LRB101 04451 SMS 61572 a

1disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (18) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in the
11performance of infrastructure repairs in this State, including
12but not limited to municipal roads and streets, access roads,
13bridges, sidewalks, waste disposal systems, water and sewer
14line extensions, water distribution and purification
15facilities, storm water drainage and retention facilities, and
16sewage treatment facilities, resulting from a State or
17federally declared disaster in Illinois or bordering Illinois
18when such repairs are initiated on facilities located in the
19declared disaster area within 6 months after the disaster.
20    (19) Beginning July 1, 1999, game or game birds purchased
21at a "game breeding and hunting preserve area" as that term is
22used in the Wildlife Code. This paragraph is exempt from the
23provisions of Section 3-75.
24    (20) A motor vehicle, as that term is defined in Section
251-146 of the Illinois Vehicle Code, that is donated to a
26corporation, limited liability company, society, association,

 

 

10100SB0690ham003- 92 -LRB101 04451 SMS 61572 a

1foundation, or institution that is determined by the Department
2to be organized and operated exclusively for educational
3purposes. For purposes of this exemption, "a corporation,
4limited liability company, society, association, foundation,
5or institution organized and operated exclusively for
6educational purposes" means all tax-supported public schools,
7private schools that offer systematic instruction in useful
8branches of learning by methods common to public schools and
9that compare favorably in their scope and intensity with the
10course of study presented in tax-supported schools, and
11vocational or technical schools or institutes organized and
12operated exclusively to provide a course of study of not less
13than 6 weeks duration and designed to prepare individuals to
14follow a trade or to pursue a manual, technical, mechanical,
15industrial, business, or commercial occupation.
16    (21) Beginning January 1, 2000, personal property,
17including food, purchased through fundraising events for the
18benefit of a public or private elementary or secondary school,
19a group of those schools, or one or more school districts if
20the events are sponsored by an entity recognized by the school
21district that consists primarily of volunteers and includes
22parents and teachers of the school children. This paragraph
23does not apply to fundraising events (i) for the benefit of
24private home instruction or (ii) for which the fundraising
25entity purchases the personal property sold at the events from
26another individual or entity that sold the property for the

 

 

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1purpose of resale by the fundraising entity and that profits
2from the sale to the fundraising entity. This paragraph is
3exempt from the provisions of Section 3-75.
4    (22) Beginning January 1, 2000 and through December 31,
52001, new or used automatic vending machines that prepare and
6serve hot food and beverages, including coffee, soup, and other
7items, and replacement parts for these machines. Beginning
8January 1, 2002 and through June 30, 2003, machines and parts
9for machines used in commercial, coin-operated amusement and
10vending business if a use or occupation tax is paid on the
11gross receipts derived from the use of the commercial,
12coin-operated amusement and vending machines. This paragraph
13is exempt from the provisions of Section 3-75.
14    (23) Beginning August 23, 2001 and through June 30, 2016,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages, soft
17drinks, and food that has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act, the MC/DD Act, or the
26Specialized Mental Health Rehabilitation Act of 2013.

 

 

10100SB0690ham003- 94 -LRB101 04451 SMS 61572 a

1    (24) Beginning on August 2, 2001 (the effective date of
2Public Act 92-227) this amendatory Act of the 92nd General
3Assembly, computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients purchased by a
6lessor who leases the equipment, under a lease of one year or
7longer executed or in effect at the time the lessor would
8otherwise be subject to the tax imposed by this Act, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act. If the equipment is leased in a
12manner that does not qualify for this exemption or is used in
13any other nonexempt manner, the lessor shall be liable for the
14tax imposed under this Act or the Use Tax Act, as the case may
15be, based on the fair market value of the property at the time
16the nonqualifying use occurs. No lessor shall collect or
17attempt to collect an amount (however designated) that purports
18to reimburse that lessor for the tax imposed by this Act or the
19Use Tax Act, as the case may be, if the tax has not been paid by
20the lessor. If a lessor improperly collects any such amount
21from the lessee, the lessee shall have a legal right to claim a
22refund of that amount from the lessor. If, however, that amount
23is not refunded to the lessee for any reason, the lessor is
24liable to pay that amount to the Department. This paragraph is
25exempt from the provisions of Section 3-75.
26    (25) Beginning on August 2, 2001 (the effective date of

 

 

10100SB0690ham003- 95 -LRB101 04451 SMS 61572 a

1Public Act 92-227) this amendatory Act of the 92nd General
2Assembly, personal property purchased by a lessor who leases
3the property, under a lease of one year or longer executed or
4in effect at the time the lessor would otherwise be subject to
5the tax imposed by this Act, to a governmental body that has
6been issued an active tax exemption identification number by
7the Department under Section 1g of the Retailers' Occupation
8Tax Act. If the property is leased in a manner that does not
9qualify for this exemption or is used in any other nonexempt
10manner, the lessor shall be liable for the tax imposed under
11this Act or the Use Tax Act, as the case may be, based on the
12fair market value of the property at the time the nonqualifying
13use occurs. No lessor shall collect or attempt to collect an
14amount (however designated) that purports to reimburse that
15lessor for the tax imposed by this Act or the Use Tax Act, as
16the case may be, if the tax has not been paid by the lessor. If
17a lessor improperly collects any such amount from the lessee,
18the lessee shall have a legal right to claim a refund of that
19amount from the lessor. If, however, that amount is not
20refunded to the lessee for any reason, the lessor is liable to
21pay that amount to the Department. This paragraph is exempt
22from the provisions of Section 3-75.
23    (26) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

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1corporation that holds a valid water supply permit issued under
2Title IV of the Environmental Protection Act. This paragraph is
3exempt from the provisions of Section 3-75.
4    (27) Beginning January 1, 2010, materials, parts,
5equipment, components, and furnishings incorporated into or
6upon an aircraft as part of the modification, refurbishment,
7completion, replacement, repair, or maintenance of the
8aircraft. This exemption includes consumable supplies used in
9the modification, refurbishment, completion, replacement,
10repair, and maintenance of aircraft, but excludes any
11materials, parts, equipment, components, and consumable
12supplies used in the modification, replacement, repair, and
13maintenance of aircraft engines or power plants, whether such
14engines or power plants are installed or uninstalled upon any
15such aircraft. "Consumable supplies" include, but are not
16limited to, adhesive, tape, sandpaper, general purpose
17lubricants, cleaning solution, latex gloves, and protective
18films. This exemption applies only to the use of qualifying
19tangible personal property transferred incident to the
20modification, refurbishment, completion, replacement, repair,
21or maintenance of aircraft by persons who (i) hold an Air
22Agency Certificate and are empowered to operate an approved
23repair station by the Federal Aviation Administration, (ii)
24have a Class IV Rating, and (iii) conduct operations in
25accordance with Part 145 of the Federal Aviation Regulations.
26The exemption does not include aircraft operated by a

 

 

10100SB0690ham003- 97 -LRB101 04451 SMS 61572 a

1commercial air carrier providing scheduled passenger air
2service pursuant to authority issued under Part 121 or Part 129
3of the Federal Aviation Regulations. The changes made to this
4paragraph (27) by Public Act 98-534 are declarative of existing
5law.
6    (28) Tangible personal property purchased by a
7public-facilities corporation, as described in Section
811-65-10 of the Illinois Municipal Code, for purposes of
9constructing or furnishing a municipal convention hall, but
10only if the legal title to the municipal convention hall is
11transferred to the municipality without any further
12consideration by or on behalf of the municipality at the time
13of the completion of the municipal convention hall or upon the
14retirement or redemption of any bonds or other debt instruments
15issued by the public-facilities corporation in connection with
16the development of the municipal convention hall. This
17exemption includes existing public-facilities corporations as
18provided in Section 11-65-25 of the Illinois Municipal Code.
19This paragraph is exempt from the provisions of Section 3-75.
20    (29) Beginning January 1, 2017, menstrual pads, tampons,
21and menstrual cups.
22    (30) Tangible personal property transferred to a purchaser
23who is exempt from the tax imposed by this Act by operation of
24federal law. This paragraph is exempt from the provisions of
25Section 3-75.
26    (31) Qualified tangible personal property used in the

 

 

10100SB0690ham003- 98 -LRB101 04451 SMS 61572 a

1construction or operation of a data center that has been
2granted a certificate of exemption by the Department of
3Commerce and Economic Opportunity, whether that tangible
4personal property is purchased by the owner, operator, or
5tenant of the data center or by a contractor or subcontractor
6of the owner, operator, or tenant. Data centers that would have
7qualified for a certificate of exemption prior to January 1,
82020 had this amendatory Act of the 101st General Assembly been
9in effect, may apply for and obtain an exemption for subsequent
10purchases of computer equipment or enabling software purchased
11or leased to upgrade, supplement, or replace computer equipment
12or enabling software purchased or leased in the original
13investment that would have qualified.
14    The Department of Commerce and Economic Opportunity shall
15grant a certificate of exemption under this item (31) to
16qualified data centers as defined by Section 605-1025 of the
17Department of Commerce and Economic Opportunity Law of the
18Civil Administrative Code of Illinois.
19    For the purposes of this item (31):
20        "Data center" means a building or a series of buildings
21    rehabilitated or constructed to house working servers in
22    one physical location or multiple sites within the State of
23    Illinois.
24        "Qualified tangible personal property" means:
25    electrical systems and equipment; climate control and
26    chilling equipment and systems; mechanical systems and

 

 

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1    equipment; monitoring and secure systems; emergency
2    generators; hardware; computers; servers; data storage
3    devices; network connectivity equipment; racks; cabinets;
4    telecommunications cabling infrastructure; raised floor
5    systems; peripheral components or systems; software;
6    mechanical, electrical, or plumbing systems; battery
7    systems; cooling systems and towers; temperature control
8    systems; other cabling; and other data center
9    infrastructure equipment and systems necessary to operate
10    qualified tangible personal property, including fixtures;
11    and component parts of any of the foregoing, including
12    installation, maintenance, repair, refurbishment, and
13    replacement of qualified tangible personal property to
14    generate, transform, transmit, distribute, or manage
15    electricity necessary to operate qualified tangible
16    personal property; and all other tangible personal
17    property that is essential to the operations of a computer
18    data center. The term "qualified tangible personal
19    property" also includes building materials physically
20    incorporated in to the qualifying data center. To document
21    the exemption allowed under this Section, the retailer must
22    obtain from the purchaser a copy of the certificate of
23    eligibility issued by the Department of Commerce and
24    Economic Opportunity.
25    This item (31) is exempt from the provisions of Section
263-75.

 

 

10100SB0690ham003- 100 -LRB101 04451 SMS 61572 a

1(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
2100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
31-4-19; revised 1-8-19.)
 
4    Section 15-40. The Service Occupation Tax Act is amended by
5changing Section 3-5 as follows:
 
6    (35 ILCS 115/3-5)
7    Sec. 3-5. Exemptions. The following tangible personal
8property is exempt from the tax imposed by this Act:
9    (1) Personal property sold by a corporation, society,
10association, foundation, institution, or organization, other
11than a limited liability company, that is organized and
12operated as a not-for-profit service enterprise for the benefit
13of persons 65 years of age or older if the personal property
14was not purchased by the enterprise for the purpose of resale
15by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by any not-for-profit arts
20or cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or
24support of arts or cultural programming, activities, or

 

 

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1services. These organizations include, but are not limited to,
2music and dramatic arts organizations such as symphony
3orchestras and theatrical groups, arts and cultural service
4organizations, local arts councils, visual arts organizations,
5and media arts organizations. On and after July 1, 2001 (the
6effective date of Public Act 92-35) this amendatory Act of the
792nd General Assembly, however, an entity otherwise eligible
8for this exemption shall not make tax-free purchases unless it
9has an active identification number issued by the Department.
10    (4) Legal tender, currency, medallions, or gold or silver
11coinage issued by the State of Illinois, the government of the
12United States of America, or the government of any foreign
13country, and bullion.
14    (5) Until July 1, 2003 and beginning again on September 1,
152004 through August 30, 2014, graphic arts machinery and
16equipment, including repair and replacement parts, both new and
17used, and including that manufactured on special order or
18purchased for lease, certified by the purchaser to be used
19primarily for graphic arts production. Equipment includes
20chemicals or chemicals acting as catalysts but only if the
21chemicals or chemicals acting as catalysts effect a direct and
22immediate change upon a graphic arts product. Beginning on July
231, 2017, graphic arts machinery and equipment is included in
24the manufacturing and assembling machinery and equipment
25exemption under Section 2 of this Act.
26    (6) Personal property sold by a teacher-sponsored student

 

 

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1organization affiliated with an elementary or secondary school
2located in Illinois.
3    (7) Farm machinery and equipment, both new and used,
4including that manufactured on special order, certified by the
5purchaser to be used primarily for production agriculture or
6State or federal agricultural programs, including individual
7replacement parts for the machinery and equipment, including
8machinery and equipment purchased for lease, and including
9implements of husbandry defined in Section 1-130 of the
10Illinois Vehicle Code, farm machinery and agricultural
11chemical and fertilizer spreaders, and nurse wagons required to
12be registered under Section 3-809 of the Illinois Vehicle Code,
13but excluding other motor vehicles required to be registered
14under the Illinois Vehicle Code. Horticultural polyhouses or
15hoop houses used for propagating, growing, or overwintering
16plants shall be considered farm machinery and equipment under
17this item (7). Agricultural chemical tender tanks and dry boxes
18shall include units sold separately from a motor vehicle
19required to be licensed and units sold mounted on a motor
20vehicle required to be licensed if the selling price of the
21tender is separately stated.
22    Farm machinery and equipment shall include precision
23farming equipment that is installed or purchased to be
24installed on farm machinery and equipment including, but not
25limited to, tractors, harvesters, sprayers, planters, seeders,
26or spreaders. Precision farming equipment includes, but is not

 

 

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1limited to, soil testing sensors, computers, monitors,
2software, global positioning and mapping systems, and other
3such equipment.
4    Farm machinery and equipment also includes computers,
5sensors, software, and related equipment used primarily in the
6computer-assisted operation of production agriculture
7facilities, equipment, and activities such as, but not limited
8to, the collection, monitoring, and correlation of animal and
9crop data for the purpose of formulating animal diets and
10agricultural chemicals. This item (7) is exempt from the
11provisions of Section 3-55.
12    (8) Until June 30, 2013, fuel and petroleum products sold
13to or used by an air common carrier, certified by the carrier
14to be used for consumption, shipment, or storage in the conduct
15of its business as an air common carrier, for a flight destined
16for or returning from a location or locations outside the
17United States without regard to previous or subsequent domestic
18stopovers.
19    Beginning July 1, 2013, fuel and petroleum products sold to
20or used by an air carrier, certified by the carrier to be used
21for consumption, shipment, or storage in the conduct of its
22business as an air common carrier, for a flight that (i) is
23engaged in foreign trade or is engaged in trade between the
24United States and any of its possessions and (ii) transports at
25least one individual or package for hire from the city of
26origination to the city of final destination on the same

 

 

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1aircraft, without regard to a change in the flight number of
2that aircraft.
3    (9) Proceeds of mandatory service charges separately
4stated on customers' bills for the purchase and consumption of
5food and beverages, to the extent that the proceeds of the
6service charge are in fact turned over as tips or as a
7substitute for tips to the employees who participate directly
8in preparing, serving, hosting or cleaning up the food or
9beverage function with respect to which the service charge is
10imposed.
11    (10) Until July 1, 2003, oil field exploration, drilling,
12and production equipment, including (i) rigs and parts of rigs,
13rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
14tubular goods, including casing and drill strings, (iii) pumps
15and pump-jack units, (iv) storage tanks and flow lines, (v) any
16individual replacement part for oil field exploration,
17drilling, and production equipment, and (vi) machinery and
18equipment purchased for lease; but excluding motor vehicles
19required to be registered under the Illinois Vehicle Code.
20    (11) Photoprocessing machinery and equipment, including
21repair and replacement parts, both new and used, including that
22manufactured on special order, certified by the purchaser to be
23used primarily for photoprocessing, and including
24photoprocessing machinery and equipment purchased for lease.
25    (12) Until July 1, 2023, coal and aggregate exploration,
26mining, off-highway hauling, processing, maintenance, and

 

 

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1reclamation equipment, including replacement parts and
2equipment, and including equipment purchased for lease, but
3excluding motor vehicles required to be registered under the
4Illinois Vehicle Code. The changes made to this Section by
5Public Act 97-767 apply on and after July 1, 2003, but no claim
6for credit or refund is allowed on or after August 16, 2013
7(the effective date of Public Act 98-456) for such taxes paid
8during the period beginning July 1, 2003 and ending on August
916, 2013 (the effective date of Public Act 98-456).
10    (13) Beginning January 1, 1992 and through June 30, 2016,
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages, soft
13drinks and food that has been prepared for immediate
14consumption) and prescription and non-prescription medicines,
15drugs, medical appliances, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, when purchased for use by a person receiving medical
18assistance under Article V of the Illinois Public Aid Code who
19resides in a licensed long-term care facility, as defined in
20the Nursing Home Care Act, or in a licensed facility as defined
21in the ID/DD Community Care Act, the MC/DD Act, or the
22Specialized Mental Health Rehabilitation Act of 2013.
23    (14) Semen used for artificial insemination of livestock
24for direct agricultural production.
25    (15) Horses, or interests in horses, registered with and
26meeting the requirements of any of the Arabian Horse Club

 

 

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1Registry of America, Appaloosa Horse Club, American Quarter
2Horse Association, United States Trotting Association, or
3Jockey Club, as appropriate, used for purposes of breeding or
4racing for prizes. This item (15) is exempt from the provisions
5of Section 3-55, and the exemption provided for under this item
6(15) applies for all periods beginning May 30, 1995, but no
7claim for credit or refund is allowed on or after January 1,
82008 (the effective date of Public Act 95-88) for such taxes
9paid during the period beginning May 30, 2000 and ending on
10January 1, 2008 (the effective date of Public Act 95-88).
11    (16) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients sold to a lessor
14who leases the equipment, under a lease of one year or longer
15executed or in effect at the time of the purchase, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act.
19    (17) Personal property sold to a lessor who leases the
20property, under a lease of one year or longer executed or in
21effect at the time of the purchase, to a governmental body that
22has been issued an active tax exemption identification number
23by the Department under Section 1g of the Retailers' Occupation
24Tax Act.
25    (18) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

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1before December 31, 2004, personal property that is donated for
2disaster relief to be used in a State or federally declared
3disaster area in Illinois or bordering Illinois by a
4manufacturer or retailer that is registered in this State to a
5corporation, society, association, foundation, or institution
6that has been issued a sales tax exemption identification
7number by the Department that assists victims of the disaster
8who reside within the declared disaster area.
9    (19) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is used in the
12performance of infrastructure repairs in this State, including
13but not limited to municipal roads and streets, access roads,
14bridges, sidewalks, waste disposal systems, water and sewer
15line extensions, water distribution and purification
16facilities, storm water drainage and retention facilities, and
17sewage treatment facilities, resulting from a State or
18federally declared disaster in Illinois or bordering Illinois
19when such repairs are initiated on facilities located in the
20declared disaster area within 6 months after the disaster.
21    (20) Beginning July 1, 1999, game or game birds sold at a
22"game breeding and hunting preserve area" as that term is used
23in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-55.
25    (21) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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1corporation, limited liability company, society, association,
2foundation, or institution that is determined by the Department
3to be organized and operated exclusively for educational
4purposes. For purposes of this exemption, "a corporation,
5limited liability company, society, association, foundation,
6or institution organized and operated exclusively for
7educational purposes" means all tax-supported public schools,
8private schools that offer systematic instruction in useful
9branches of learning by methods common to public schools and
10that compare favorably in their scope and intensity with the
11course of study presented in tax-supported schools, and
12vocational or technical schools or institutes organized and
13operated exclusively to provide a course of study of not less
14than 6 weeks duration and designed to prepare individuals to
15follow a trade or to pursue a manual, technical, mechanical,
16industrial, business, or commercial occupation.
17    (22) Beginning January 1, 2000, personal property,
18including food, purchased through fundraising events for the
19benefit of a public or private elementary or secondary school,
20a group of those schools, or one or more school districts if
21the events are sponsored by an entity recognized by the school
22district that consists primarily of volunteers and includes
23parents and teachers of the school children. This paragraph
24does not apply to fundraising events (i) for the benefit of
25private home instruction or (ii) for which the fundraising
26entity purchases the personal property sold at the events from

 

 

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1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-55.
5    (23) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-55.
15    (24) Beginning on August 2, 2001 (the effective date of
16Public Act 92-227) this amendatory Act of the 92nd General
17Assembly, computers and communications equipment utilized for
18any hospital purpose and equipment used in the diagnosis,
19analysis, or treatment of hospital patients sold to a lessor
20who leases the equipment, under a lease of one year or longer
21executed or in effect at the time of the purchase, to a
22hospital that has been issued an active tax exemption
23identification number by the Department under Section 1g of the
24Retailers' Occupation Tax Act. This paragraph is exempt from
25the provisions of Section 3-55.
26    (25) Beginning on August 2, 2001 (the effective date of

 

 

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1Public Act 92-227) this amendatory Act of the 92nd General
2Assembly, personal property sold to a lessor who leases the
3property, under a lease of one year or longer executed or in
4effect at the time of the purchase, to a governmental body that
5has been issued an active tax exemption identification number
6by the Department under Section 1g of the Retailers' Occupation
7Tax Act. This paragraph is exempt from the provisions of
8Section 3-55.
9    (26) Beginning on January 1, 2002 and through June 30,
102016, tangible personal property purchased from an Illinois
11retailer by a taxpayer engaged in centralized purchasing
12activities in Illinois who will, upon receipt of the property
13in Illinois, temporarily store the property in Illinois (i) for
14the purpose of subsequently transporting it outside this State
15for use or consumption thereafter solely outside this State or
16(ii) for the purpose of being processed, fabricated, or
17manufactured into, attached to, or incorporated into other
18tangible personal property to be transported outside this State
19and thereafter used or consumed solely outside this State. The
20Director of Revenue shall, pursuant to rules adopted in
21accordance with the Illinois Administrative Procedure Act,
22issue a permit to any taxpayer in good standing with the
23Department who is eligible for the exemption under this
24paragraph (26). The permit issued under this paragraph (26)
25shall authorize the holder, to the extent and in the manner
26specified in the rules adopted under this Act, to purchase

 

 

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1tangible personal property from a retailer exempt from the
2taxes imposed by this Act. Taxpayers shall maintain all
3necessary books and records to substantiate the use and
4consumption of all such tangible personal property outside of
5the State of Illinois.
6    (27) Beginning January 1, 2008, tangible personal property
7used in the construction or maintenance of a community water
8supply, as defined under Section 3.145 of the Environmental
9Protection Act, that is operated by a not-for-profit
10corporation that holds a valid water supply permit issued under
11Title IV of the Environmental Protection Act. This paragraph is
12exempt from the provisions of Section 3-55.
13    (28) Tangible personal property sold to a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt instruments
22issued by the public-facilities corporation in connection with
23the development of the municipal convention hall. This
24exemption includes existing public-facilities corporations as
25provided in Section 11-65-25 of the Illinois Municipal Code.
26This paragraph is exempt from the provisions of Section 3-55.

 

 

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1    (29) Beginning January 1, 2010, materials, parts,
2equipment, components, and furnishings incorporated into or
3upon an aircraft as part of the modification, refurbishment,
4completion, replacement, repair, or maintenance of the
5aircraft. This exemption includes consumable supplies used in
6the modification, refurbishment, completion, replacement,
7repair, and maintenance of aircraft, but excludes any
8materials, parts, equipment, components, and consumable
9supplies used in the modification, replacement, repair, and
10maintenance of aircraft engines or power plants, whether such
11engines or power plants are installed or uninstalled upon any
12such aircraft. "Consumable supplies" include, but are not
13limited to, adhesive, tape, sandpaper, general purpose
14lubricants, cleaning solution, latex gloves, and protective
15films. This exemption applies only to the transfer of
16qualifying tangible personal property incident to the
17modification, refurbishment, completion, replacement, repair,
18or maintenance of an aircraft by persons who (i) hold an Air
19Agency Certificate and are empowered to operate an approved
20repair station by the Federal Aviation Administration, (ii)
21have a Class IV Rating, and (iii) conduct operations in
22accordance with Part 145 of the Federal Aviation Regulations.
23The exemption does not include aircraft operated by a
24commercial air carrier providing scheduled passenger air
25service pursuant to authority issued under Part 121 or Part 129
26of the Federal Aviation Regulations. The changes made to this

 

 

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1paragraph (29) by Public Act 98-534 are declarative of existing
2law.
3    (30) Beginning January 1, 2017, menstrual pads, tampons,
4and menstrual cups.
5    (31) Tangible personal property transferred to a purchaser
6who is exempt from tax by operation of federal law. This
7paragraph is exempt from the provisions of Section 3-55.
8    (32) Qualified tangible personal property used in the
9construction or operation of a data center that has been
10granted a certificate of exemption by the Department of
11Commerce and Economic Opportunity, whether that tangible
12personal property is purchased by the owner, operator, or
13tenant of the data center or by a contractor or subcontractor
14of the owner, operator, or tenant. Data centers that would have
15qualified for a certificate of exemption prior to January 1,
162020 had this amendatory Act of the 101st General Assembly been
17in effect, may apply for and obtain an exemption for subsequent
18purchases of computer equipment or enabling software purchased
19or leased to upgrade, supplement, or replace computer equipment
20or enabling software purchased or leased in the original
21investment that would have qualified.
22    The Department of Commerce and Economic Opportunity shall
23grant a certificate of exemption under this item (32) to
24qualified data centers as defined by Section 605-1025 of the
25Department of Commerce and Economic Opportunity Law of the
26Civil Administrative Code of Illinois.

 

 

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1    For the purposes of this item (32):
2        "Data center" means a building or a series of buildings
3    rehabilitated or constructed to house working servers in
4    one physical location or multiple sites within the State of
5    Illinois.
6        "Qualified tangible personal property" means:
7    electrical systems and equipment; climate control and
8    chilling equipment and systems; mechanical systems and
9    equipment; monitoring and secure systems; emergency
10    generators; hardware; computers; servers; data storage
11    devices; network connectivity equipment; racks; cabinets;
12    telecommunications cabling infrastructure; raised floor
13    systems; peripheral components or systems; software;
14    mechanical, electrical, or plumbing systems; battery
15    systems; cooling systems and towers; temperature control
16    systems; other cabling; and other data center
17    infrastructure equipment and systems necessary to operate
18    qualified tangible personal property, including fixtures;
19    and component parts of any of the foregoing, including
20    installation, maintenance, repair, refurbishment, and
21    replacement of qualified tangible personal property to
22    generate, transform, transmit, distribute, or manage
23    electricity necessary to operate qualified tangible
24    personal property; and all other tangible personal
25    property that is essential to the operations of a computer
26    data center. The term "qualified tangible personal

 

 

10100SB0690ham003- 115 -LRB101 04451 SMS 61572 a

1    property" also includes building materials physically
2    incorporated in to the qualifying data center. To document
3    the exemption allowed under this Section, the retailer must
4    obtain from the purchaser a copy of the certificate of
5    eligibility issued by the Department of Commerce and
6    Economic Opportunity.
7    This item (32) is exempt from the provisions of Section
83-55.
9(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
10100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
111-4-19; revised 1-8-19.)
 
12    Section 15-45. The Retailers' Occupation Tax Act is amended
13by changing Sections 1, 2, 2-5, 2-12, and 2a as follows:
 
14    (35 ILCS 120/1)  (from Ch. 120, par. 440)
15    Sec. 1. Definitions. "Sale at retail" means any transfer of
16the ownership of or title to tangible personal property to a
17purchaser, for the purpose of use or consumption, and not for
18the purpose of resale in any form as tangible personal property
19to the extent not first subjected to a use for which it was
20purchased, for a valuable consideration: Provided that the
21property purchased is deemed to be purchased for the purpose of
22resale, despite first being used, to the extent to which it is
23resold as an ingredient of an intentionally produced product or
24byproduct of manufacturing. For this purpose, slag produced as

 

 

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1an incident to manufacturing pig iron or steel and sold is
2considered to be an intentionally produced byproduct of
3manufacturing. Transactions whereby the possession of the
4property is transferred but the seller retains the title as
5security for payment of the selling price shall be deemed to be
6sales.
7    "Sale at retail" shall be construed to include any transfer
8of the ownership of or title to tangible personal property to a
9purchaser, for use or consumption by any other person to whom
10such purchaser may transfer the tangible personal property
11without a valuable consideration, and to include any transfer,
12whether made for or without a valuable consideration, for
13resale in any form as tangible personal property unless made in
14compliance with Section 2c of this Act.
15    Sales of tangible personal property, which property, to the
16extent not first subjected to a use for which it was purchased,
17as an ingredient or constituent, goes into and forms a part of
18tangible personal property subsequently the subject of a "Sale
19at retail", are not sales at retail as defined in this Act:
20Provided that the property purchased is deemed to be purchased
21for the purpose of resale, despite first being used, to the
22extent to which it is resold as an ingredient of an
23intentionally produced product or byproduct of manufacturing.
24    "Sale at retail" shall be construed to include any Illinois
25florist's sales transaction in which the purchase order is
26received in Illinois by a florist and the sale is for use or

 

 

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1consumption, but the Illinois florist has a florist in another
2state deliver the property to the purchaser or the purchaser's
3donee in such other state.
4    Nonreusable tangible personal property that is used by
5persons engaged in the business of operating a restaurant,
6cafeteria, or drive-in is a sale for resale when it is
7transferred to customers in the ordinary course of business as
8part of the sale of food or beverages and is used to deliver,
9package, or consume food or beverages, regardless of where
10consumption of the food or beverages occurs. Examples of those
11items include, but are not limited to nonreusable, paper and
12plastic cups, plates, baskets, boxes, sleeves, buckets or other
13containers, utensils, straws, placemats, napkins, doggie bags,
14and wrapping or packaging materials that are transferred to
15customers as part of the sale of food or beverages in the
16ordinary course of business.
17    The purchase, employment and transfer of such tangible
18personal property as newsprint and ink for the primary purpose
19of conveying news (with or without other information) is not a
20purchase, use or sale of tangible personal property.
21    A person whose activities are organized and conducted
22primarily as a not-for-profit service enterprise, and who
23engages in selling tangible personal property at retail
24(whether to the public or merely to members and their guests)
25is engaged in the business of selling tangible personal
26property at retail with respect to such transactions, excepting

 

 

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1only a person organized and operated exclusively for
2charitable, religious or educational purposes either (1), to
3the extent of sales by such person to its members, students,
4patients or inmates of tangible personal property to be used
5primarily for the purposes of such person, or (2), to the
6extent of sales by such person of tangible personal property
7which is not sold or offered for sale by persons organized for
8profit. The selling of school books and school supplies by
9schools at retail to students is not "primarily for the
10purposes of" the school which does such selling. The provisions
11of this paragraph shall not apply to nor subject to taxation
12occasional dinners, socials or similar activities of a person
13organized and operated exclusively for charitable, religious
14or educational purposes, whether or not such activities are
15open to the public.
16    A person who is the recipient of a grant or contract under
17Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
18serves meals to participants in the federal Nutrition Program
19for the Elderly in return for contributions established in
20amount by the individual participant pursuant to a schedule of
21suggested fees as provided for in the federal Act is not
22engaged in the business of selling tangible personal property
23at retail with respect to such transactions.
24    "Purchaser" means anyone who, through a sale at retail,
25acquires the ownership of or title to tangible personal
26property for a valuable consideration.

 

 

10100SB0690ham003- 119 -LRB101 04451 SMS 61572 a

1    "Reseller of motor fuel" means any person engaged in the
2business of selling or delivering or transferring title of
3motor fuel to another person other than for use or consumption.
4No person shall act as a reseller of motor fuel within this
5State without first being registered as a reseller pursuant to
6Section 2c or a retailer pursuant to Section 2a.
7    "Selling price" or the "amount of sale" means the
8consideration for a sale valued in money whether received in
9money or otherwise, including cash, credits, property, other
10than as hereinafter provided, and services, but, prior to
11January 1, 2020, not including the value of or credit given for
12traded-in tangible personal property where the item that is
13traded-in is of like kind and character as that which is being
14sold; beginning January 1, 2020, "selling price" includes the
15portion of the value of or credit given for traded-in motor
16vehicles of the First Division as defined in Section 1-146 of
17the Illinois Vehicle Code of like kind and character as that
18which is being sold that exceeds $10,000. "Selling price" , and
19shall be determined without any deduction on account of the
20cost of the property sold, the cost of materials used, labor or
21service cost or any other expense whatsoever, but does not
22include charges that are added to prices by sellers on account
23of the seller's tax liability under this Act, or on account of
24the seller's duty to collect, from the purchaser, the tax that
25is imposed by the Use Tax Act, or, except as otherwise provided
26with respect to any cigarette tax imposed by a home rule unit,

 

 

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1on account of the seller's tax liability under any local
2occupation tax administered by the Department, or, except as
3otherwise provided with respect to any cigarette tax imposed by
4a home rule unit on account of the seller's duty to collect,
5from the purchasers, the tax that is imposed under any local
6use tax administered by the Department. Effective December 1,
71985, "selling price" shall include charges that are added to
8prices by sellers on account of the seller's tax liability
9under the Cigarette Tax Act, on account of the sellers' duty to
10collect, from the purchaser, the tax imposed under the
11Cigarette Use Tax Act, and on account of the seller's duty to
12collect, from the purchaser, any cigarette tax imposed by a
13home rule unit.
14    Notwithstanding any law to the contrary, for any motor
15vehicle, as defined in Section 1-146 of the Vehicle Code, that
16is sold on or after January 1, 2015 for the purpose of leasing
17the vehicle for a defined period that is longer than one year
18and (1) is a motor vehicle of the second division that: (A) is
19a self-contained motor vehicle designed or permanently
20converted to provide living quarters for recreational,
21camping, or travel use, with direct walk through access to the
22living quarters from the driver's seat; (B) is of the van
23configuration designed for the transportation of not less than
247 nor more than 16 passengers; or (C) has a gross vehicle
25weight rating of 8,000 pounds or less or (2) is a motor vehicle
26of the first division, "selling price" or "amount of sale"

 

 

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1means the consideration received by the lessor pursuant to the
2lease contract, including amounts due at lease signing and all
3monthly or other regular payments charged over the term of the
4lease. Also included in the selling price is any amount
5received by the lessor from the lessee for the leased vehicle
6that is not calculated at the time the lease is executed,
7including, but not limited to, excess mileage charges and
8charges for excess wear and tear. For sales that occur in
9Illinois, with respect to any amount received by the lessor
10from the lessee for the leased vehicle that is not calculated
11at the time the lease is executed, the lessor who purchased the
12motor vehicle does not incur the tax imposed by the Use Tax Act
13on those amounts, and the retailer who makes the retail sale of
14the motor vehicle to the lessor is not required to collect the
15tax imposed by the Use Tax Act or to pay the tax imposed by this
16Act on those amounts. However, the lessor who purchased the
17motor vehicle assumes the liability for reporting and paying
18the tax on those amounts directly to the Department in the same
19form (Illinois Retailers' Occupation Tax, and local retailers'
20occupation taxes, if applicable) in which the retailer would
21have reported and paid such tax if the retailer had accounted
22for the tax to the Department. For amounts received by the
23lessor from the lessee that are not calculated at the time the
24lease is executed, the lessor must file the return and pay the
25tax to the Department by the due date otherwise required by
26this Act for returns other than transaction returns. If the

 

 

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1retailer is entitled under this Act to a discount for
2collecting and remitting the tax imposed under this Act to the
3Department with respect to the sale of the motor vehicle to the
4lessor, then the right to the discount provided in this Act
5shall be transferred to the lessor with respect to the tax paid
6by the lessor for any amount received by the lessor from the
7lessee for the leased vehicle that is not calculated at the
8time the lease is executed; provided that the discount is only
9allowed if the return is timely filed and for amounts timely
10paid. The "selling price" of a motor vehicle that is sold on or
11after January 1, 2015 for the purpose of leasing for a defined
12period of longer than one year shall not be reduced by the
13value of or credit given for traded-in tangible personal
14property owned by the lessor, nor shall it be reduced by the
15value of or credit given for traded-in tangible personal
16property owned by the lessee, regardless of whether the
17trade-in value thereof is assigned by the lessee to the lessor.
18In the case of a motor vehicle that is sold for the purpose of
19leasing for a defined period of longer than one year, the sale
20occurs at the time of the delivery of the vehicle, regardless
21of the due date of any lease payments. A lessor who incurs a
22Retailers' Occupation Tax liability on the sale of a motor
23vehicle coming off lease may not take a credit against that
24liability for the Use Tax the lessor paid upon the purchase of
25the motor vehicle (or for any tax the lessor paid with respect
26to any amount received by the lessor from the lessee for the

 

 

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1leased vehicle that was not calculated at the time the lease
2was executed) if the selling price of the motor vehicle at the
3time of purchase was calculated using the definition of
4"selling price" as defined in this paragraph. Notwithstanding
5any other provision of this Act to the contrary, lessors shall
6file all returns and make all payments required under this
7paragraph to the Department by electronic means in the manner
8and form as required by the Department. This paragraph does not
9apply to leases of motor vehicles for which, at the time the
10lease is entered into, the term of the lease is not a defined
11period, including leases with a defined initial period with the
12option to continue the lease on a month-to-month or other basis
13beyond the initial defined period.
14    The phrase "like kind and character" shall be liberally
15construed (including but not limited to any form of motor
16vehicle for any form of motor vehicle, or any kind of farm or
17agricultural implement for any other kind of farm or
18agricultural implement), while not including a kind of item
19which, if sold at retail by that retailer, would be exempt from
20retailers' occupation tax and use tax as an isolated or
21occasional sale.
22    "Gross receipts" from the sales of tangible personal
23property at retail means the total selling price or the amount
24of such sales, as hereinbefore defined. In the case of charge
25and time sales, the amount thereof shall be included only as
26and when payments are received by the seller. Receipts or other

 

 

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1consideration derived by a seller from the sale, transfer or
2assignment of accounts receivable to a wholly owned subsidiary
3will not be deemed payments prior to the time the purchaser
4makes payment on such accounts.
5    "Department" means the Department of Revenue.
6    "Person" means any natural individual, firm, partnership,
7association, joint stock company, joint adventure, public or
8private corporation, limited liability company, or a receiver,
9executor, trustee, guardian or other representative appointed
10by order of any court.
11    The isolated or occasional sale of tangible personal
12property at retail by a person who does not hold himself out as
13being engaged (or who does not habitually engage) in selling
14such tangible personal property at retail, or a sale through a
15bulk vending machine, does not constitute engaging in a
16business of selling such tangible personal property at retail
17within the meaning of this Act; provided that any person who is
18engaged in a business which is not subject to the tax imposed
19by this Act because of involving the sale of or a contract to
20sell real estate or a construction contract to improve real
21estate or a construction contract to engineer, install, and
22maintain an integrated system of products, but who, in the
23course of conducting such business, transfers tangible
24personal property to users or consumers in the finished form in
25which it was purchased, and which does not become real estate
26or was not engineered and installed, under any provision of a

 

 

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1construction contract or real estate sale or real estate sales
2agreement entered into with some other person arising out of or
3because of such nontaxable business, is engaged in the business
4of selling tangible personal property at retail to the extent
5of the value of the tangible personal property so transferred.
6If, in such a transaction, a separate charge is made for the
7tangible personal property so transferred, the value of such
8property, for the purpose of this Act, shall be the amount so
9separately charged, but not less than the cost of such property
10to the transferor; if no separate charge is made, the value of
11such property, for the purposes of this Act, is the cost to the
12transferor of such tangible personal property. Construction
13contracts for the improvement of real estate consisting of
14engineering, installation, and maintenance of voice, data,
15video, security, and all telecommunication systems do not
16constitute engaging in a business of selling tangible personal
17property at retail within the meaning of this Act if they are
18sold at one specified contract price.
19    A person who holds himself or herself out as being engaged
20(or who habitually engages) in selling tangible personal
21property at retail is a person engaged in the business of
22selling tangible personal property at retail hereunder with
23respect to such sales (and not primarily in a service
24occupation) notwithstanding the fact that such person designs
25and produces such tangible personal property on special order
26for the purchaser and in such a way as to render the property

 

 

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1of value only to such purchaser, if such tangible personal
2property so produced on special order serves substantially the
3same function as stock or standard items of tangible personal
4property that are sold at retail.
5    Persons who engage in the business of transferring tangible
6personal property upon the redemption of trading stamps are
7engaged in the business of selling such property at retail and
8shall be liable for and shall pay the tax imposed by this Act
9on the basis of the retail value of the property transferred
10upon redemption of such stamps.
11    "Bulk vending machine" means a vending machine, containing
12unsorted confections, nuts, toys, or other items designed
13primarily to be used or played with by children which, when a
14coin or coins of a denomination not larger than $0.50 are
15inserted, are dispensed in equal portions, at random and
16without selection by the customer.
17    "Remote retailer" means a retailer located outside of this
18State that does not maintain within this State, directly or by
19a subsidiary, an office, distribution house, sales house,
20warehouse or other place of business, or any agent or other
21representative operating within this State under the authority
22of the retailer or its subsidiary, irrespective of whether such
23place of business or agent is located here permanently or
24temporarily or whether such retailer or subsidiary is licensed
25to do business in this State.
26(Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)
 

 

 

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1    (35 ILCS 120/2)  (from Ch. 120, par. 441)
2    Sec. 2. Tax imposed.
3    (a) A tax is imposed upon persons engaged in the business
4of selling at retail tangible personal property, including
5computer software, and including photographs, negatives, and
6positives that are the product of photoprocessing, but not
7including products of photoprocessing produced for use in
8motion pictures for public commercial exhibition. Beginning
9January 1, 2001, prepaid telephone calling arrangements shall
10be considered tangible personal property subject to the tax
11imposed under this Act regardless of the form in which those
12arrangements may be embodied, transmitted, or fixed by any
13method now known or hereafter developed. Sales of (1)
14electricity delivered to customers by wire; (2) natural or
15artificial gas that is delivered to customers through pipes,
16pipelines, or mains; and (3) water that is delivered to
17customers through pipes, pipelines, or mains are not subject to
18tax under this Act. The provisions of this amendatory Act of
19the 98th General Assembly are declaratory of existing law as to
20the meaning and scope of this Act.
21    (b) Beginning on July 1, 2020, a remote retailer is engaged
22in the occupation of selling at retail in Illinois for purposes
23of this Act, if:
24        (1) the cumulative gross receipts from sales of
25    tangible personal property to purchasers in Illinois are

 

 

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1    $100,000 or more; or
2        (2) the retailer enters into 200 or more separate
3    transactions for the sale of tangible personal property to
4    purchasers in Illinois.
5    Remote retailers that meet or exceed the threshold in
6either paragraph (1) or (2) above shall be liable for all
7applicable State and locally imposed retailers' occupation
8taxes on all retail sales to Illinois purchasers.
9    The remote retailer shall determine on a quarterly basis,
10ending on the last day of March, June, September, and December,
11whether he or she meets the criteria of either paragraph (1) or
12(2) of this subsection for the preceding 12-month period. If
13the retailer meets the criteria of either paragraph (1) or (2)
14for a 12-month period, he or she is considered a retailer
15maintaining a place of business in this State and is required
16to collect and remit the tax imposed under this Act and all
17retailers' occupation tax imposed by local taxing
18jurisdictions in Illinois, provided such local taxes are
19administered by the Department, and to file all applicable
20returns for one year. At the end of that one-year period, the
21retailer shall determine whether the retailer met the criteria
22of either paragraph (1) or (2) for the preceding 12-month
23period. If the retailer met the criteria in either paragraph
24(1) or (2) for the preceding 12-month period, he or she is
25considered a retailer maintaining a place of business in this
26State and is required to collect and remit all applicable State

 

 

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1and local retailers' occupation taxes and file returns for the
2subsequent year. If, at the end of a one-year period, a
3retailer that was required to collect and remit the tax imposed
4under this Act determines that he or she did not meet the
5criteria in either paragraph (1) or (2) during the preceding
612-month period, then the retailer shall subsequently
7determine on a quarterly basis, ending on the last day of
8March, June, September, and December, whether he or she meets
9the criteria of either paragraph (1) or (2) for the preceding
1012-month period.
11(Source: P.A. 98-583, eff. 1-1-14.)
 
12    (35 ILCS 120/2-5)
13    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
14sale of the following tangible personal property are exempt
15from the tax imposed by this Act:
16        (1) Farm chemicals.
17        (2) Farm machinery and equipment, both new and used,
18    including that manufactured on special order, certified by
19    the purchaser to be used primarily for production
20    agriculture or State or federal agricultural programs,
21    including individual replacement parts for the machinery
22    and equipment, including machinery and equipment purchased
23    for lease, and including implements of husbandry defined in
24    Section 1-130 of the Illinois Vehicle Code, farm machinery
25    and agricultural chemical and fertilizer spreaders, and

 

 

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1    nurse wagons required to be registered under Section 3-809
2    of the Illinois Vehicle Code, but excluding other motor
3    vehicles required to be registered under the Illinois
4    Vehicle Code. Horticultural polyhouses or hoop houses used
5    for propagating, growing, or overwintering plants shall be
6    considered farm machinery and equipment under this item
7    (2). Agricultural chemical tender tanks and dry boxes shall
8    include units sold separately from a motor vehicle required
9    to be licensed and units sold mounted on a motor vehicle
10    required to be licensed, if the selling price of the tender
11    is separately stated.
12        Farm machinery and equipment shall include precision
13    farming equipment that is installed or purchased to be
14    installed on farm machinery and equipment including, but
15    not limited to, tractors, harvesters, sprayers, planters,
16    seeders, or spreaders. Precision farming equipment
17    includes, but is not limited to, soil testing sensors,
18    computers, monitors, software, global positioning and
19    mapping systems, and other such equipment.
20        Farm machinery and equipment also includes computers,
21    sensors, software, and related equipment used primarily in
22    the computer-assisted operation of production agriculture
23    facilities, equipment, and activities such as, but not
24    limited to, the collection, monitoring, and correlation of
25    animal and crop data for the purpose of formulating animal
26    diets and agricultural chemicals. This item (2) is exempt

 

 

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1    from the provisions of Section 2-70.
2        (3) Until July 1, 2003, distillation machinery and
3    equipment, sold as a unit or kit, assembled or installed by
4    the retailer, certified by the user to be used only for the
5    production of ethyl alcohol that will be used for
6    consumption as motor fuel or as a component of motor fuel
7    for the personal use of the user, and not subject to sale
8    or resale.
9        (4) Until July 1, 2003 and beginning again September 1,
10    2004 through August 30, 2014, graphic arts machinery and
11    equipment, including repair and replacement parts, both
12    new and used, and including that manufactured on special
13    order or purchased for lease, certified by the purchaser to
14    be used primarily for graphic arts production. Equipment
15    includes chemicals or chemicals acting as catalysts but
16    only if the chemicals or chemicals acting as catalysts
17    effect a direct and immediate change upon a graphic arts
18    product. Beginning on July 1, 2017, graphic arts machinery
19    and equipment is included in the manufacturing and
20    assembling machinery and equipment exemption under
21    paragraph (14).
22        (5) A motor vehicle that is used for automobile
23    renting, as defined in the Automobile Renting Occupation
24    and Use Tax Act. This paragraph is exempt from the
25    provisions of Section 2-70.
26        (6) Personal property sold by a teacher-sponsored

 

 

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1    student organization affiliated with an elementary or
2    secondary school located in Illinois.
3        (7) Until July 1, 2003, proceeds of that portion of the
4    selling price of a passenger car the sale of which is
5    subject to the Replacement Vehicle Tax.
6        (8) Personal property sold to an Illinois county fair
7    association for use in conducting, operating, or promoting
8    the county fair.
9        (9) Personal property sold to a not-for-profit arts or
10    cultural organization that establishes, by proof required
11    by the Department by rule, that it has received an
12    exemption under Section 501(c)(3) of the Internal Revenue
13    Code and that is organized and operated primarily for the
14    presentation or support of arts or cultural programming,
15    activities, or services. These organizations include, but
16    are not limited to, music and dramatic arts organizations
17    such as symphony orchestras and theatrical groups, arts and
18    cultural service organizations, local arts councils,
19    visual arts organizations, and media arts organizations.
20    On and after July 1, 2001 (the effective date of Public Act
21    92-35), however, an entity otherwise eligible for this
22    exemption shall not make tax-free purchases unless it has
23    an active identification number issued by the Department.
24        (10) Personal property sold by a corporation, society,
25    association, foundation, institution, or organization,
26    other than a limited liability company, that is organized

 

 

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1    and operated as a not-for-profit service enterprise for the
2    benefit of persons 65 years of age or older if the personal
3    property was not purchased by the enterprise for the
4    purpose of resale by the enterprise.
5        (11) Personal property sold to a governmental body, to
6    a corporation, society, association, foundation, or
7    institution organized and operated exclusively for
8    charitable, religious, or educational purposes, or to a
9    not-for-profit corporation, society, association,
10    foundation, institution, or organization that has no
11    compensated officers or employees and that is organized and
12    operated primarily for the recreation of persons 55 years
13    of age or older. A limited liability company may qualify
14    for the exemption under this paragraph only if the limited
15    liability company is organized and operated exclusively
16    for educational purposes. On and after July 1, 1987,
17    however, no entity otherwise eligible for this exemption
18    shall make tax-free purchases unless it has an active
19    identification number issued by the Department.
20        (12) (Blank).
21        (12-5) On and after July 1, 2003 and through June 30,
22    2004, motor vehicles of the second division with a gross
23    vehicle weight in excess of 8,000 pounds that are subject
24    to the commercial distribution fee imposed under Section
25    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
26    2004 and through June 30, 2005, the use in this State of

 

 

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1    motor vehicles of the second division: (i) with a gross
2    vehicle weight rating in excess of 8,000 pounds; (ii) that
3    are subject to the commercial distribution fee imposed
4    under Section 3-815.1 of the Illinois Vehicle Code; and
5    (iii) that are primarily used for commercial purposes.
6    Through June 30, 2005, this exemption applies to repair and
7    replacement parts added after the initial purchase of such
8    a motor vehicle if that motor vehicle is used in a manner
9    that would qualify for the rolling stock exemption
10    otherwise provided for in this Act. For purposes of this
11    paragraph, "used for commercial purposes" means the
12    transportation of persons or property in furtherance of any
13    commercial or industrial enterprise whether for-hire or
14    not.
15        (13) Proceeds from sales to owners, lessors, or
16    shippers of tangible personal property that is utilized by
17    interstate carriers for hire for use as rolling stock
18    moving in interstate commerce and equipment operated by a
19    telecommunications provider, licensed as a common carrier
20    by the Federal Communications Commission, which is
21    permanently installed in or affixed to aircraft moving in
22    interstate commerce.
23        (14) Machinery and equipment that will be used by the
24    purchaser, or a lessee of the purchaser, primarily in the
25    process of manufacturing or assembling tangible personal
26    property for wholesale or retail sale or lease, whether the

 

 

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1    sale or lease is made directly by the manufacturer or by
2    some other person, whether the materials used in the
3    process are owned by the manufacturer or some other person,
4    or whether the sale or lease is made apart from or as an
5    incident to the seller's engaging in the service occupation
6    of producing machines, tools, dies, jigs, patterns,
7    gauges, or other similar items of no commercial value on
8    special order for a particular purchaser. The exemption
9    provided by this paragraph (14) does not include machinery
10    and equipment used in (i) the generation of electricity for
11    wholesale or retail sale; (ii) the generation or treatment
12    of natural or artificial gas for wholesale or retail sale
13    that is delivered to customers through pipes, pipelines, or
14    mains; or (iii) the treatment of water for wholesale or
15    retail sale that is delivered to customers through pipes,
16    pipelines, or mains. The provisions of Public Act 98-583
17    are declaratory of existing law as to the meaning and scope
18    of this exemption. Beginning on July 1, 2017, the exemption
19    provided by this paragraph (14) includes, but is not
20    limited to, graphic arts machinery and equipment, as
21    defined in paragraph (4) of this Section.
22        (15) Proceeds of mandatory service charges separately
23    stated on customers' bills for purchase and consumption of
24    food and beverages, to the extent that the proceeds of the
25    service charge are in fact turned over as tips or as a
26    substitute for tips to the employees who participate

 

 

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1    directly in preparing, serving, hosting or cleaning up the
2    food or beverage function with respect to which the service
3    charge is imposed.
4        (16) Tangible personal property sold to a purchaser if
5    the purchaser is exempt from use tax by operation of
6    federal law. This paragraph is exempt from the provisions
7    of Section 2-70.
8        (17) Tangible personal property sold to a common
9    carrier by rail or motor that receives the physical
10    possession of the property in Illinois and that transports
11    the property, or shares with another common carrier in the
12    transportation of the property, out of Illinois on a
13    standard uniform bill of lading showing the seller of the
14    property as the shipper or consignor of the property to a
15    destination outside Illinois, for use outside Illinois.
16        (18) Legal tender, currency, medallions, or gold or
17    silver coinage issued by the State of Illinois, the
18    government of the United States of America, or the
19    government of any foreign country, and bullion.
20        (19) Until July 1, 2003, oil field exploration,
21    drilling, and production equipment, including (i) rigs and
22    parts of rigs, rotary rigs, cable tool rigs, and workover
23    rigs, (ii) pipe and tubular goods, including casing and
24    drill strings, (iii) pumps and pump-jack units, (iv)
25    storage tanks and flow lines, (v) any individual
26    replacement part for oil field exploration, drilling, and

 

 

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1    production equipment, and (vi) machinery and equipment
2    purchased for lease; but excluding motor vehicles required
3    to be registered under the Illinois Vehicle Code.
4        (20) Photoprocessing machinery and equipment,
5    including repair and replacement parts, both new and used,
6    including that manufactured on special order, certified by
7    the purchaser to be used primarily for photoprocessing, and
8    including photoprocessing machinery and equipment
9    purchased for lease.
10        (21) Until July 1, 2023, coal and aggregate
11    exploration, mining, off-highway hauling, processing,
12    maintenance, and reclamation equipment, including
13    replacement parts and equipment, and including equipment
14    purchased for lease, but excluding motor vehicles required
15    to be registered under the Illinois Vehicle Code. The
16    changes made to this Section by Public Act 97-767 apply on
17    and after July 1, 2003, but no claim for credit or refund
18    is allowed on or after August 16, 2013 (the effective date
19    of Public Act 98-456) for such taxes paid during the period
20    beginning July 1, 2003 and ending on August 16, 2013 (the
21    effective date of Public Act 98-456).
22        (22) Until June 30, 2013, fuel and petroleum products
23    sold to or used by an air carrier, certified by the carrier
24    to be used for consumption, shipment, or storage in the
25    conduct of its business as an air common carrier, for a
26    flight destined for or returning from a location or

 

 

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1    locations outside the United States without regard to
2    previous or subsequent domestic stopovers.
3        Beginning July 1, 2013, fuel and petroleum products
4    sold to or used by an air carrier, certified by the carrier
5    to be used for consumption, shipment, or storage in the
6    conduct of its business as an air common carrier, for a
7    flight that (i) is engaged in foreign trade or is engaged
8    in trade between the United States and any of its
9    possessions and (ii) transports at least one individual or
10    package for hire from the city of origination to the city
11    of final destination on the same aircraft, without regard
12    to a change in the flight number of that aircraft.
13        (23) A transaction in which the purchase order is
14    received by a florist who is located outside Illinois, but
15    who has a florist located in Illinois deliver the property
16    to the purchaser or the purchaser's donee in Illinois.
17        (24) Fuel consumed or used in the operation of ships,
18    barges, or vessels that are used primarily in or for the
19    transportation of property or the conveyance of persons for
20    hire on rivers bordering on this State if the fuel is
21    delivered by the seller to the purchaser's barge, ship, or
22    vessel while it is afloat upon that bordering river.
23        (25) Except as provided in item (25-5) of this Section,
24    a motor vehicle sold in this State to a nonresident even
25    though the motor vehicle is delivered to the nonresident in
26    this State, if the motor vehicle is not to be titled in

 

 

10100SB0690ham003- 139 -LRB101 04451 SMS 61572 a

1    this State, and if a drive-away permit is issued to the
2    motor vehicle as provided in Section 3-603 of the Illinois
3    Vehicle Code or if the nonresident purchaser has vehicle
4    registration plates to transfer to the motor vehicle upon
5    returning to his or her home state. The issuance of the
6    drive-away permit or having the out-of-state registration
7    plates to be transferred is prima facie evidence that the
8    motor vehicle will not be titled in this State.
9        (25-5) The exemption under item (25) does not apply if
10    the state in which the motor vehicle will be titled does
11    not allow a reciprocal exemption for a motor vehicle sold
12    and delivered in that state to an Illinois resident but
13    titled in Illinois. The tax collected under this Act on the
14    sale of a motor vehicle in this State to a resident of
15    another state that does not allow a reciprocal exemption
16    shall be imposed at a rate equal to the state's rate of tax
17    on taxable property in the state in which the purchaser is
18    a resident, except that the tax shall not exceed the tax
19    that would otherwise be imposed under this Act. At the time
20    of the sale, the purchaser shall execute a statement,
21    signed under penalty of perjury, of his or her intent to
22    title the vehicle in the state in which the purchaser is a
23    resident within 30 days after the sale and of the fact of
24    the payment to the State of Illinois of tax in an amount
25    equivalent to the state's rate of tax on taxable property
26    in his or her state of residence and shall submit the

 

 

10100SB0690ham003- 140 -LRB101 04451 SMS 61572 a

1    statement to the appropriate tax collection agency in his
2    or her state of residence. In addition, the retailer must
3    retain a signed copy of the statement in his or her
4    records. Nothing in this item shall be construed to require
5    the removal of the vehicle from this state following the
6    filing of an intent to title the vehicle in the purchaser's
7    state of residence if the purchaser titles the vehicle in
8    his or her state of residence within 30 days after the date
9    of sale. The tax collected under this Act in accordance
10    with this item (25-5) shall be proportionately distributed
11    as if the tax were collected at the 6.25% general rate
12    imposed under this Act.
13        (25-7) Beginning on July 1, 2007, no tax is imposed
14    under this Act on the sale of an aircraft, as defined in
15    Section 3 of the Illinois Aeronautics Act, if all of the
16    following conditions are met:
17            (1) the aircraft leaves this State within 15 days
18        after the later of either the issuance of the final
19        billing for the sale of the aircraft, or the authorized
20        approval for return to service, completion of the
21        maintenance record entry, and completion of the test
22        flight and ground test for inspection, as required by
23        14 C.F.R. 91.407;
24            (2) the aircraft is not based or registered in this
25        State after the sale of the aircraft; and
26            (3) the seller retains in his or her books and

 

 

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1        records and provides to the Department a signed and
2        dated certification from the purchaser, on a form
3        prescribed by the Department, certifying that the
4        requirements of this item (25-7) are met. The
5        certificate must also include the name and address of
6        the purchaser, the address of the location where the
7        aircraft is to be titled or registered, the address of
8        the primary physical location of the aircraft, and
9        other information that the Department may reasonably
10        require.
11        For purposes of this item (25-7):
12        "Based in this State" means hangared, stored, or
13    otherwise used, excluding post-sale customizations as
14    defined in this Section, for 10 or more days in each
15    12-month period immediately following the date of the sale
16    of the aircraft.
17        "Registered in this State" means an aircraft
18    registered with the Department of Transportation,
19    Aeronautics Division, or titled or registered with the
20    Federal Aviation Administration to an address located in
21    this State.
22        This paragraph (25-7) is exempt from the provisions of
23    Section 2-70.
24        (26) Semen used for artificial insemination of
25    livestock for direct agricultural production.
26        (27) Horses, or interests in horses, registered with

 

 

10100SB0690ham003- 142 -LRB101 04451 SMS 61572 a

1    and meeting the requirements of any of the Arabian Horse
2    Club Registry of America, Appaloosa Horse Club, American
3    Quarter Horse Association, United States Trotting
4    Association, or Jockey Club, as appropriate, used for
5    purposes of breeding or racing for prizes. This item (27)
6    is exempt from the provisions of Section 2-70, and the
7    exemption provided for under this item (27) applies for all
8    periods beginning May 30, 1995, but no claim for credit or
9    refund is allowed on or after January 1, 2008 (the
10    effective date of Public Act 95-88) for such taxes paid
11    during the period beginning May 30, 2000 and ending on
12    January 1, 2008 (the effective date of Public Act 95-88).
13        (28) Computers and communications equipment utilized
14    for any hospital purpose and equipment used in the
15    diagnosis, analysis, or treatment of hospital patients
16    sold to a lessor who leases the equipment, under a lease of
17    one year or longer executed or in effect at the time of the
18    purchase, to a hospital that has been issued an active tax
19    exemption identification number by the Department under
20    Section 1g of this Act.
21        (29) Personal property sold to a lessor who leases the
22    property, under a lease of one year or longer executed or
23    in effect at the time of the purchase, to a governmental
24    body that has been issued an active tax exemption
25    identification number by the Department under Section 1g of
26    this Act.

 

 

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1        (30) Beginning with taxable years ending on or after
2    December 31, 1995 and ending with taxable years ending on
3    or before December 31, 2004, personal property that is
4    donated for disaster relief to be used in a State or
5    federally declared disaster area in Illinois or bordering
6    Illinois by a manufacturer or retailer that is registered
7    in this State to a corporation, society, association,
8    foundation, or institution that has been issued a sales tax
9    exemption identification number by the Department that
10    assists victims of the disaster who reside within the
11    declared disaster area.
12        (31) Beginning with taxable years ending on or after
13    December 31, 1995 and ending with taxable years ending on
14    or before December 31, 2004, personal property that is used
15    in the performance of infrastructure repairs in this State,
16    including but not limited to municipal roads and streets,
17    access roads, bridges, sidewalks, waste disposal systems,
18    water and sewer line extensions, water distribution and
19    purification facilities, storm water drainage and
20    retention facilities, and sewage treatment facilities,
21    resulting from a State or federally declared disaster in
22    Illinois or bordering Illinois when such repairs are
23    initiated on facilities located in the declared disaster
24    area within 6 months after the disaster.
25        (32) Beginning July 1, 1999, game or game birds sold at
26    a "game breeding and hunting preserve area" as that term is

 

 

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1    used in the Wildlife Code. This paragraph is exempt from
2    the provisions of Section 2-70.
3        (33) A motor vehicle, as that term is defined in
4    Section 1-146 of the Illinois Vehicle Code, that is donated
5    to a corporation, limited liability company, society,
6    association, foundation, or institution that is determined
7    by the Department to be organized and operated exclusively
8    for educational purposes. For purposes of this exemption,
9    "a corporation, limited liability company, society,
10    association, foundation, or institution organized and
11    operated exclusively for educational purposes" means all
12    tax-supported public schools, private schools that offer
13    systematic instruction in useful branches of learning by
14    methods common to public schools and that compare favorably
15    in their scope and intensity with the course of study
16    presented in tax-supported schools, and vocational or
17    technical schools or institutes organized and operated
18    exclusively to provide a course of study of not less than 6
19    weeks duration and designed to prepare individuals to
20    follow a trade or to pursue a manual, technical,
21    mechanical, industrial, business, or commercial
22    occupation.
23        (34) Beginning January 1, 2000, personal property,
24    including food, purchased through fundraising events for
25    the benefit of a public or private elementary or secondary
26    school, a group of those schools, or one or more school

 

 

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1    districts if the events are sponsored by an entity
2    recognized by the school district that consists primarily
3    of volunteers and includes parents and teachers of the
4    school children. This paragraph does not apply to
5    fundraising events (i) for the benefit of private home
6    instruction or (ii) for which the fundraising entity
7    purchases the personal property sold at the events from
8    another individual or entity that sold the property for the
9    purpose of resale by the fundraising entity and that
10    profits from the sale to the fundraising entity. This
11    paragraph is exempt from the provisions of Section 2-70.
12        (35) Beginning January 1, 2000 and through December 31,
13    2001, new or used automatic vending machines that prepare
14    and serve hot food and beverages, including coffee, soup,
15    and other items, and replacement parts for these machines.
16    Beginning January 1, 2002 and through June 30, 2003,
17    machines and parts for machines used in commercial,
18    coin-operated amusement and vending business if a use or
19    occupation tax is paid on the gross receipts derived from
20    the use of the commercial, coin-operated amusement and
21    vending machines. This paragraph is exempt from the
22    provisions of Section 2-70.
23        (35-5) Beginning August 23, 2001 and through June 30,
24    2016, food for human consumption that is to be consumed off
25    the premises where it is sold (other than alcoholic
26    beverages, soft drinks, and food that has been prepared for

 

 

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1    immediate consumption) and prescription and
2    nonprescription medicines, drugs, medical appliances, and
3    insulin, urine testing materials, syringes, and needles
4    used by diabetics, for human use, when purchased for use by
5    a person receiving medical assistance under Article V of
6    the Illinois Public Aid Code who resides in a licensed
7    long-term care facility, as defined in the Nursing Home
8    Care Act, or a licensed facility as defined in the ID/DD
9    Community Care Act, the MC/DD Act, or the Specialized
10    Mental Health Rehabilitation Act of 2013.
11        (36) Beginning August 2, 2001, computers and
12    communications equipment utilized for any hospital purpose
13    and equipment used in the diagnosis, analysis, or treatment
14    of hospital patients sold to a lessor who leases the
15    equipment, under a lease of one year or longer executed or
16    in effect at the time of the purchase, to a hospital that
17    has been issued an active tax exemption identification
18    number by the Department under Section 1g of this Act. This
19    paragraph is exempt from the provisions of Section 2-70.
20        (37) Beginning August 2, 2001, personal property sold
21    to a lessor who leases the property, under a lease of one
22    year or longer executed or in effect at the time of the
23    purchase, to a governmental body that has been issued an
24    active tax exemption identification number by the
25    Department under Section 1g of this Act. This paragraph is
26    exempt from the provisions of Section 2-70.

 

 

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1        (38) Beginning on January 1, 2002 and through June 30,
2    2016, tangible personal property purchased from an
3    Illinois retailer by a taxpayer engaged in centralized
4    purchasing activities in Illinois who will, upon receipt of
5    the property in Illinois, temporarily store the property in
6    Illinois (i) for the purpose of subsequently transporting
7    it outside this State for use or consumption thereafter
8    solely outside this State or (ii) for the purpose of being
9    processed, fabricated, or manufactured into, attached to,
10    or incorporated into other tangible personal property to be
11    transported outside this State and thereafter used or
12    consumed solely outside this State. The Director of Revenue
13    shall, pursuant to rules adopted in accordance with the
14    Illinois Administrative Procedure Act, issue a permit to
15    any taxpayer in good standing with the Department who is
16    eligible for the exemption under this paragraph (38). The
17    permit issued under this paragraph (38) shall authorize the
18    holder, to the extent and in the manner specified in the
19    rules adopted under this Act, to purchase tangible personal
20    property from a retailer exempt from the taxes imposed by
21    this Act. Taxpayers shall maintain all necessary books and
22    records to substantiate the use and consumption of all such
23    tangible personal property outside of the State of
24    Illinois.
25        (39) Beginning January 1, 2008, tangible personal
26    property used in the construction or maintenance of a

 

 

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1    community water supply, as defined under Section 3.145 of
2    the Environmental Protection Act, that is operated by a
3    not-for-profit corporation that holds a valid water supply
4    permit issued under Title IV of the Environmental
5    Protection Act. This paragraph is exempt from the
6    provisions of Section 2-70.
7        (40) Beginning January 1, 2010, materials, parts,
8    equipment, components, and furnishings incorporated into
9    or upon an aircraft as part of the modification,
10    refurbishment, completion, replacement, repair, or
11    maintenance of the aircraft. This exemption includes
12    consumable supplies used in the modification,
13    refurbishment, completion, replacement, repair, and
14    maintenance of aircraft, but excludes any materials,
15    parts, equipment, components, and consumable supplies used
16    in the modification, replacement, repair, and maintenance
17    of aircraft engines or power plants, whether such engines
18    or power plants are installed or uninstalled upon any such
19    aircraft. "Consumable supplies" include, but are not
20    limited to, adhesive, tape, sandpaper, general purpose
21    lubricants, cleaning solution, latex gloves, and
22    protective films. This exemption applies only to the sale
23    of qualifying tangible personal property to persons who
24    modify, refurbish, complete, replace, or maintain an
25    aircraft and who (i) hold an Air Agency Certificate and are
26    empowered to operate an approved repair station by the

 

 

10100SB0690ham003- 149 -LRB101 04451 SMS 61572 a

1    Federal Aviation Administration, (ii) have a Class IV
2    Rating, and (iii) conduct operations in accordance with
3    Part 145 of the Federal Aviation Regulations. The exemption
4    does not include aircraft operated by a commercial air
5    carrier providing scheduled passenger air service pursuant
6    to authority issued under Part 121 or Part 129 of the
7    Federal Aviation Regulations. The changes made to this
8    paragraph (40) by Public Act 98-534 are declarative of
9    existing law.
10        (41) Tangible personal property sold to a
11    public-facilities corporation, as described in Section
12    11-65-10 of the Illinois Municipal Code, for purposes of
13    constructing or furnishing a municipal convention hall,
14    but only if the legal title to the municipal convention
15    hall is transferred to the municipality without any further
16    consideration by or on behalf of the municipality at the
17    time of the completion of the municipal convention hall or
18    upon the retirement or redemption of any bonds or other
19    debt instruments issued by the public-facilities
20    corporation in connection with the development of the
21    municipal convention hall. This exemption includes
22    existing public-facilities corporations as provided in
23    Section 11-65-25 of the Illinois Municipal Code. This
24    paragraph is exempt from the provisions of Section 2-70.
25        (42) Beginning January 1, 2017, menstrual pads,
26    tampons, and menstrual cups.

 

 

10100SB0690ham003- 150 -LRB101 04451 SMS 61572 a

1        (43) Merchandise that is subject to the Rental Purchase
2    Agreement Occupation and Use Tax. The purchaser must
3    certify that the item is purchased to be rented subject to
4    a rental purchase agreement, as defined in the Rental
5    Purchase Agreement Act, and provide proof of registration
6    under the Rental Purchase Agreement Occupation and Use Tax
7    Act. This paragraph is exempt from the provisions of
8    Section 2-70.
9        (44) Qualified tangible personal property used in the
10    construction or operation of a data center that has been
11    granted a certificate of exemption by the Department of
12    Commerce and Economic Opportunity, whether that tangible
13    personal property is purchased by the owner, operator, or
14    tenant of the data center or by a contractor or
15    subcontractor of the owner, operator, or tenant. Data
16    centers that would have qualified for a certificate of
17    exemption prior to January 1, 2020 had this amendatory Act
18    of the 101st General Assembly been in effect, may apply for
19    and obtain an exemption for subsequent purchases of
20    computer equipment or enabling software purchased or
21    leased to upgrade, supplement, or replace computer
22    equipment or enabling software purchased or leased in the
23    original investment that would have qualified.
24        The Department of Commerce and Economic Opportunity
25    shall grant a certificate of exemption under this item (44)
26    to qualified data centers as defined by Section 605-1025 of

 

 

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1    the Department of Commerce and Economic Opportunity Law of
2    the Civil Administrative Code of Illinois.
3        For the purposes of this item (44):
4            "Data center" means a building or a series of
5        buildings rehabilitated or constructed to house
6        working servers in one physical location or multiple
7        sites within the State of Illinois.
8            "Qualified tangible personal property" means:
9        electrical systems and equipment; climate control and
10        chilling equipment and systems; mechanical systems and
11        equipment; monitoring and secure systems; emergency
12        generators; hardware; computers; servers; data storage
13        devices; network connectivity equipment; racks;
14        cabinets; telecommunications cabling infrastructure;
15        raised floor systems; peripheral components or
16        systems; software; mechanical, electrical, or plumbing
17        systems; battery systems; cooling systems and towers;
18        temperature control systems; other cabling; and other
19        data center infrastructure equipment and systems
20        necessary to operate qualified tangible personal
21        property, including fixtures; and component parts of
22        any of the foregoing, including installation,
23        maintenance, repair, refurbishment, and replacement of
24        qualified tangible personal property to generate,
25        transform, transmit, distribute, or manage electricity
26        necessary to operate qualified tangible personal

 

 

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1        property; and all other tangible personal property
2        that is essential to the operations of a computer data
3        center. The term "qualified tangible personal
4        property" also includes building materials physically
5        incorporated in to the qualifying data center. To
6        document the exemption allowed under this Section, the
7        retailer must obtain from the purchaser a copy of the
8        certificate of eligibility issued by the Department of
9        Commerce and Economic Opportunity.
10        This item (44) is exempt from the provisions of Section
11    2-70.
12(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
13100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
141-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18;
15100-1171, eff. 1-4-19; revised 1-8-19.)
 
16    (35 ILCS 120/2-12)
17    Sec. 2-12. Location where retailer is deemed to be engaged
18in the business of selling. The purpose of this Section is to
19specify where a retailer is deemed to be engaged in the
20business of selling tangible personal property for the purposes
21of this Act, the Use Tax Act, the Service Use Tax Act, and the
22Service Occupation Tax Act, and for the purpose of collecting
23any other local retailers' occupation tax administered by the
24Department. This Section applies only with respect to the
25particular selling activities described in the following

 

 

10100SB0690ham003- 153 -LRB101 04451 SMS 61572 a

1paragraphs. The provisions of this Section are not intended to,
2and shall not be interpreted to, affect where a retailer is
3deemed to be engaged in the business of selling with respect to
4any activity that is not specifically described in the
5following paragraphs.
6        (1) If a purchaser who is present at the retailer's
7    place of business, having no prior commitment to the
8    retailer, agrees to purchase and makes payment for tangible
9    personal property at the retailer's place of business, then
10    the transaction shall be deemed an over-the-counter sale
11    occurring at the retailer's same place of business where
12    the purchaser was present and made payment for that
13    tangible personal property if the retailer regularly
14    stocks the purchased tangible personal property or similar
15    tangible personal property in the quantity, or similar
16    quantity, for sale at the retailer's same place of business
17    and then either (i) the purchaser takes possession of the
18    tangible personal property at the same place of business or
19    (ii) the retailer delivers or arranges for the tangible
20    personal property to be delivered to the purchaser.
21        (2) If a purchaser, having no prior commitment to the
22    retailer, agrees to purchase tangible personal property
23    and makes payment over the phone, in writing, or via the
24    Internet and takes possession of the tangible personal
25    property at the retailer's place of business, then the sale
26    shall be deemed to have occurred at the retailer's place of

 

 

10100SB0690ham003- 154 -LRB101 04451 SMS 61572 a

1    business where the purchaser takes possession of the
2    property if the retailer regularly stocks the item or
3    similar items in the quantity, or similar quantities,
4    purchased by the purchaser.
5        (3) A retailer is deemed to be engaged in the business
6    of selling food, beverages, or other tangible personal
7    property through a vending machine at the location where
8    the vending machine is located at the time the sale is made
9    if (i) the vending machine is a device operated by coin,
10    currency, credit card, token, coupon or similar device; (2)
11    the food, beverage or other tangible personal property is
12    contained within the vending machine and dispensed from the
13    vending machine; and (3) the purchaser takes possession of
14    the purchased food, beverage or other tangible personal
15    property immediately.
16        (4) Minerals. A producer of coal or other mineral mined
17    in Illinois is deemed to be engaged in the business of
18    selling at the place where the coal or other mineral mined
19    in Illinois is extracted from the earth. With respect to
20    minerals (i) the term "extracted from the earth" means the
21    location at which the coal or other mineral is extracted
22    from the mouth of the mine, and (ii) a "mineral" includes
23    not only coal, but also oil, sand, stone taken from a
24    quarry, gravel and any other thing commonly regarded as a
25    mineral and extracted from the earth. This paragraph does
26    not apply to coal or another mineral when it is delivered

 

 

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1    or shipped by the seller to the purchaser at a point
2    outside Illinois so that the sale is exempt under the
3    United States Constitution as a sale in interstate or
4    foreign commerce.
5        (5) A retailer selling tangible personal property to a
6    nominal lessee or bailee pursuant to a lease with a dollar
7    or other nominal option to purchase is engaged in the
8    business of selling at the location where the property is
9    first delivered to the lessee or bailee for its intended
10    use.
11        (6) Beginning on July 1, 2020, for the purposes of
12    determining the correct local retailers' occupation tax
13    rate, retail sales made by a remote retailer that meet or
14    exceed the thresholds established in paragraph (1) or (2)
15    of subsection (b) of Section 2 of this Act shall be deemed
16    to be made at the Illinois location to which the tangible
17    personal property is shipped or delivered or at which
18    possession is taken by the purchaser.
19(Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)
 
20    (35 ILCS 120/2a)  (from Ch. 120, par. 441a)
21    Sec. 2a. It is unlawful for any person to engage in the
22business of selling tangible personal property at retail in
23this State without a certificate of registration from the
24Department. Application for a certificate of registration
25shall be made to the Department upon forms furnished by it.

 

 

10100SB0690ham003- 156 -LRB101 04451 SMS 61572 a

1Each such application shall be signed and verified and shall
2state: (1) the name and social security number of the
3applicant; (2) the address of his principal place of business;
4(3) the address of the principal place of business from which
5he engages in the business of selling tangible personal
6property at retail in this State and the addresses of all other
7places of business, if any (enumerating such addresses, if any,
8in a separate list attached to and made a part of the
9application), from which he engages in the business of selling
10tangible personal property at retail in this State; (4) the
11name and address of the person or persons who will be
12responsible for filing returns and payment of taxes due under
13this Act; (5) in the case of a publicly traded corporation, the
14name and title of the Chief Financial Officer, Chief Operating
15Officer, and any other officer or employee with responsibility
16for preparing tax returns under this Act, and, in the case of
17all other corporations, the name, title, and social security
18number of each corporate officer; (6) in the case of a limited
19liability company, the name, social security number, and FEIN
20number of each manager and member; and (7) such other
21information as the Department may reasonably require. The
22application shall contain an acceptance of responsibility
23signed by the person or persons who will be responsible for
24filing returns and payment of the taxes due under this Act. If
25the applicant will sell tangible personal property at retail
26through vending machines, his application to register shall

 

 

10100SB0690ham003- 157 -LRB101 04451 SMS 61572 a

1indicate the number of vending machines to be so operated. If
2requested by the Department at any time, that person shall
3verify the total number of vending machines he or she uses in
4his or her business of selling tangible personal property at
5retail.
6    The Department shall provide by rule for an expedited
7business registration process for remote retailers required to
8register and file under subsection (b) of Section 2 who use a
9certified service provider to file their returns under this
10Act. Such expedited registration process shall allow the
11Department to register a taxpayer based upon the same
12registration information required by the Streamlined Sales Tax
13Governing Board for states participating in the Streamlined
14Sales Tax Project.
15    The Department may deny a certificate of registration to
16any applicant if a person who is named as the owner, a partner,
17a manager or member of a limited liability company, or a
18corporate officer of the applicant on the application for the
19certificate of registration is or has been named as the owner,
20a partner, a manager or member of a limited liability company,
21or a corporate officer on the application for the certificate
22of registration of another retailer that is in default for
23moneys due under this Act or any other tax or fee Act
24administered by the Department. For purposes of this paragraph
25only, in determining whether a person is in default for moneys
26due, the Department shall include only amounts established as a

 

 

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1final liability within the 20 years prior to the date of the
2Department's notice of denial of a certificate of registration.
3    The Department may require an applicant for a certificate
4of registration hereunder to, at the time of filing such
5application, furnish a bond from a surety company authorized to
6do business in the State of Illinois, or an irrevocable bank
7letter of credit or a bond signed by 2 personal sureties who
8have filed, with the Department, sworn statements disclosing
9net assets equal to at least 3 times the amount of the bond to
10be required of such applicant, or a bond secured by an
11assignment of a bank account or certificate of deposit, stocks
12or bonds, conditioned upon the applicant paying to the State of
13Illinois all moneys becoming due under this Act and under any
14other State tax law or municipal or county tax ordinance or
15resolution under which the certificate of registration that is
16issued to the applicant under this Act will permit the
17applicant to engage in business without registering separately
18under such other law, ordinance or resolution. In making a
19determination as to whether to require a bond or other
20security, the Department shall take into consideration whether
21the owner, any partner, any manager or member of a limited
22liability company, or a corporate officer of the applicant is
23or has been the owner, a partner, a manager or member of a
24limited liability company, or a corporate officer of another
25retailer that is in default for moneys due under this Act or
26any other tax or fee Act administered by the Department; and

 

 

10100SB0690ham003- 159 -LRB101 04451 SMS 61572 a

1whether the owner, any partner, any manager or member of a
2limited liability company, or a corporate officer of the
3applicant is or has been the owner, a partner, a manager or
4member of a limited liability company, or a corporate officer
5of another retailer whose certificate of registration has been
6revoked within the previous 5 years under this Act or any other
7tax or fee Act administered by the Department. If a bond or
8other security is required, the Department shall fix the amount
9of the bond or other security, taking into consideration the
10amount of money expected to become due from the applicant under
11this Act and under any other State tax law or municipal or
12county tax ordinance or resolution under which the certificate
13of registration that is issued to the applicant under this Act
14will permit the applicant to engage in business without
15registering separately under such other law, ordinance, or
16resolution. The amount of security required by the Department
17shall be such as, in its opinion, will protect the State of
18Illinois against failure to pay the amount which may become due
19from the applicant under this Act and under any other State tax
20law or municipal or county tax ordinance or resolution under
21which the certificate of registration that is issued to the
22applicant under this Act will permit the applicant to engage in
23business without registering separately under such other law,
24ordinance or resolution, but the amount of the security
25required by the Department shall not exceed three times the
26amount of the applicant's average monthly tax liability, or

 

 

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1$50,000.00, whichever amount is lower.
2    No certificate of registration under this Act shall be
3issued by the Department until the applicant provides the
4Department with satisfactory security, if required, as herein
5provided for.
6    Upon receipt of the application for certificate of
7registration in proper form, and upon approval by the
8Department of the security furnished by the applicant, if
9required, the Department shall issue to such applicant a
10certificate of registration which shall permit the person to
11whom it is issued to engage in the business of selling tangible
12personal property at retail in this State. The certificate of
13registration shall be conspicuously displayed at the place of
14business which the person so registered states in his
15application to be the principal place of business from which he
16engages in the business of selling tangible personal property
17at retail in this State.
18    No certificate of registration issued prior to July 1, 2017
19to a taxpayer who files returns required by this Act on a
20monthly basis or renewed prior to July 1, 2017 by a taxpayer
21who files returns required by this Act on a monthly basis shall
22be valid after the expiration of 5 years from the date of its
23issuance or last renewal. No certificate of registration issued
24on or after July 1, 2017 to a taxpayer who files returns
25required by this Act on a monthly basis or renewed on or after
26July 1, 2017 by a taxpayer who files returns required by this

 

 

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1Act on a monthly basis shall be valid after the expiration of
2one year from the date of its issuance or last renewal. The
3expiration date of a sub-certificate of registration shall be
4that of the certificate of registration to which the
5sub-certificate relates. Prior to July 1, 2017, a certificate
6of registration shall automatically be renewed, subject to
7revocation as provided by this Act, for an additional 5 years
8from the date of its expiration unless otherwise notified by
9the Department as provided by this paragraph. On and after July
101, 2017, a certificate of registration shall automatically be
11renewed, subject to revocation as provided by this Act, for an
12additional one year from the date of its expiration unless
13otherwise notified by the Department as provided by this
14paragraph.
15    Where a taxpayer to whom a certificate of registration is
16issued under this Act is in default to the State of Illinois
17for delinquent returns or for moneys due under this Act or any
18other State tax law or municipal or county ordinance
19administered or enforced by the Department, the Department
20shall, not less than 60 days before the expiration date of such
21certificate of registration, give notice to the taxpayer to
22whom the certificate was issued of the account period of the
23delinquent returns, the amount of tax, penalty and interest due
24and owing from the taxpayer, and that the certificate of
25registration shall not be automatically renewed upon its
26expiration date unless the taxpayer, on or before the date of

 

 

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1expiration, has filed and paid the delinquent returns or paid
2the defaulted amount in full. A taxpayer to whom such a notice
3is issued shall be deemed an applicant for renewal. The
4Department shall promulgate regulations establishing
5procedures for taxpayers who file returns on a monthly basis
6but desire and qualify to change to a quarterly or yearly
7filing basis and will no longer be subject to renewal under
8this Section, and for taxpayers who file returns on a yearly or
9quarterly basis but who desire or are required to change to a
10monthly filing basis and will be subject to renewal under this
11Section.
12    The Department may in its discretion approve renewal by an
13applicant who is in default if, at the time of application for
14renewal, the applicant files all of the delinquent returns or
15pays to the Department such percentage of the defaulted amount
16as may be determined by the Department and agrees in writing to
17waive all limitations upon the Department for collection of the
18remaining defaulted amount to the Department over a period not
19to exceed 5 years from the date of renewal of the certificate;
20however, no renewal application submitted by an applicant who
21is in default shall be approved if the immediately preceding
22renewal by the applicant was conditioned upon the installment
23payment agreement described in this Section. The payment
24agreement herein provided for shall be in addition to and not
25in lieu of the security that may be required by this Section of
26a taxpayer who is no longer considered a prior continuous

 

 

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1compliance taxpayer. The execution of the payment agreement as
2provided in this Act shall not toll the accrual of interest at
3the statutory rate.
4    The Department may suspend a certificate of registration if
5the Department finds that the person to whom the certificate of
6registration has been issued knowingly sold contraband
7cigarettes.
8    A certificate of registration issued under this Act more
9than 5 years before January 1, 1990 (the effective date of
10Public Act 86-383) shall expire and be subject to the renewal
11provisions of this Section on the next anniversary of the date
12of issuance of such certificate which occurs more than 6 months
13after January 1, 1990 (the effective date of Public Act
1486-383). A certificate of registration issued less than 5 years
15before January 1, 1990 (the effective date of Public Act
1686-383) shall expire and be subject to the renewal provisions
17of this Section on the 5th anniversary of the issuance of the
18certificate.
19    If the person so registered states that he operates other
20places of business from which he engages in the business of
21selling tangible personal property at retail in this State, the
22Department shall furnish him with a sub-certificate of
23registration for each such place of business, and the applicant
24shall display the appropriate sub-certificate of registration
25at each such place of business. All sub-certificates of
26registration shall bear the same registration number as that

 

 

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1appearing upon the certificate of registration to which such
2sub-certificates relate.
3    If the applicant will sell tangible personal property at
4retail through vending machines, the Department shall furnish
5him with a sub-certificate of registration for each such
6vending machine, and the applicant shall display the
7appropriate sub-certificate of registration on each such
8vending machine by attaching the sub-certificate of
9registration to a conspicuous part of such vending machine. If
10a person who is registered to sell tangible personal property
11at retail through vending machines adds an additional vending
12machine or additional vending machines to the number of vending
13machines he or she uses in his or her business of selling
14tangible personal property at retail, he or she shall notify
15the Department, on a form prescribed by the Department, to
16request an additional sub-certificate or additional
17sub-certificates of registration, as applicable. With each
18such request, the applicant shall report the number of
19sub-certificates of registration he or she is requesting as
20well as the total number of vending machines from which he or
21she makes retail sales.
22    Where the same person engages in 2 or more businesses of
23selling tangible personal property at retail in this State,
24which businesses are substantially different in character or
25engaged in under different trade names or engaged in under
26other substantially dissimilar circumstances (so that it is

 

 

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1more practicable, from an accounting, auditing or bookkeeping
2standpoint, for such businesses to be separately registered),
3the Department may require or permit such person (subject to
4the same requirements concerning the furnishing of security as
5those that are provided for hereinbefore in this Section as to
6each application for a certificate of registration) to apply
7for and obtain a separate certificate of registration for each
8such business or for any of such businesses, under a single
9certificate of registration supplemented by related
10sub-certificates of registration.
11    Any person who is registered under the Retailers'
12Occupation Tax Act as of March 8, 1963, and who, during the
133-year period immediately prior to March 8, 1963, or during a
14continuous 3-year period part of which passed immediately
15before and the remainder of which passes immediately after
16March 8, 1963, has been so registered continuously and who is
17determined by the Department not to have been either delinquent
18or deficient in the payment of tax liability during that period
19under this Act or under any other State tax law or municipal or
20county tax ordinance or resolution under which the certificate
21of registration that is issued to the registrant under this Act
22will permit the registrant to engage in business without
23registering separately under such other law, ordinance or
24resolution, shall be considered to be a Prior Continuous
25Compliance taxpayer. Also any taxpayer who has, as verified by
26the Department, faithfully and continuously complied with the

 

 

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1condition of his bond or other security under the provisions of
2this Act for a period of 3 consecutive years shall be
3considered to be a Prior Continuous Compliance taxpayer.
4    Every Prior Continuous Compliance taxpayer shall be exempt
5from all requirements under this Act concerning the furnishing
6of a bond or other security as a condition precedent to his
7being authorized to engage in the business of selling tangible
8personal property at retail in this State. This exemption shall
9continue for each such taxpayer until such time as he may be
10determined by the Department to be delinquent in the filing of
11any returns, or is determined by the Department (either through
12the Department's issuance of a final assessment which has
13become final under the Act, or by the taxpayer's filing of a
14return which admits tax that is not paid to be due) to be
15delinquent or deficient in the paying of any tax under this Act
16or under any other State tax law or municipal or county tax
17ordinance or resolution under which the certificate of
18registration that is issued to the registrant under this Act
19will permit the registrant to engage in business without
20registering separately under such other law, ordinance or
21resolution, at which time that taxpayer shall become subject to
22all the financial responsibility requirements of this Act and,
23as a condition of being allowed to continue to engage in the
24business of selling tangible personal property at retail, may
25be required to post bond or other acceptable security with the
26Department covering liability which such taxpayer may

 

 

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1thereafter incur. Any taxpayer who fails to pay an admitted or
2established liability under this Act may also be required to
3post bond or other acceptable security with this Department
4guaranteeing the payment of such admitted or established
5liability.
6    No certificate of registration shall be issued to any
7person who is in default to the State of Illinois for moneys
8due under this Act or under any other State tax law or
9municipal or county tax ordinance or resolution under which the
10certificate of registration that is issued to the applicant
11under this Act will permit the applicant to engage in business
12without registering separately under such other law, ordinance
13or resolution.
14    Any person aggrieved by any decision of the Department
15under this Section may, within 20 days after notice of such
16decision, protest and request a hearing, whereupon the
17Department shall give notice to such person of the time and
18place fixed for such hearing and shall hold a hearing in
19conformity with the provisions of this Act and then issue its
20final administrative decision in the matter to such person. In
21the absence of such a protest within 20 days, the Department's
22decision shall become final without any further determination
23being made or notice given.
24    With respect to security other than bonds (upon which the
25Department may sue in the event of a forfeiture), if the
26taxpayer fails to pay, when due, any amount whose payment such

 

 

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1security guarantees, the Department shall, after such
2liability is admitted by the taxpayer or established by the
3Department through the issuance of a final assessment that has
4become final under the law, convert the security which that
5taxpayer has furnished into money for the State, after first
6giving the taxpayer at least 10 days' written notice, by
7registered or certified mail, to pay the liability or forfeit
8such security to the Department. If the security consists of
9stocks or bonds or other securities which are listed on a
10public exchange, the Department shall sell such securities
11through such public exchange. If the security consists of an
12irrevocable bank letter of credit, the Department shall convert
13the security in the manner provided for in the Uniform
14Commercial Code. If the security consists of a bank certificate
15of deposit, the Department shall convert the security into
16money by demanding and collecting the amount of such bank
17certificate of deposit from the bank which issued such
18certificate. If the security consists of a type of stocks or
19other securities which are not listed on a public exchange, the
20Department shall sell such security to the highest and best
21bidder after giving at least 10 days' notice of the date, time
22and place of the intended sale by publication in the "State
23Official Newspaper". If the Department realizes more than the
24amount of such liability from the security, plus the expenses
25incurred by the Department in converting the security into
26money, the Department shall pay such excess to the taxpayer who

 

 

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1furnished such security, and the balance shall be paid into the
2State Treasury.
3    The Department shall discharge any surety and shall release
4and return any security deposited, assigned, pledged or
5otherwise provided to it by a taxpayer under this Section
6within 30 days after:
7        (1) such taxpayer becomes a Prior Continuous
8    Compliance taxpayer; or
9        (2) such taxpayer has ceased to collect receipts on
10    which he is required to remit tax to the Department, has
11    filed a final tax return, and has paid to the Department an
12    amount sufficient to discharge his remaining tax
13    liability, as determined by the Department, under this Act
14    and under every other State tax law or municipal or county
15    tax ordinance or resolution under which the certificate of
16    registration issued under this Act permits the registrant
17    to engage in business without registering separately under
18    such other law, ordinance or resolution. The Department
19    shall make a final determination of the taxpayer's
20    outstanding tax liability as expeditiously as possible
21    after his final tax return has been filed; if the
22    Department cannot make such final determination within 45
23    days after receiving the final tax return, within such
24    period it shall so notify the taxpayer, stating its reasons
25    therefor.
26(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17;

 

 

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1100-863, eff. 8-14-18.)
 
2    Section 15-50. The Cigarette Tax Act is amended by changing
3Section 2 as follows:
 
4    (35 ILCS 130/2)  (from Ch. 120, par. 453.2)
5    Sec. 2. Tax imposed; rate; collection, payment, and
6distribution; discount.
7    (a) Beginning on July 1, 2019, in place of the aggregate
8tax rate of 99 mills previously imposed by this Act, a tax is
9imposed upon any person engaged in business as a retailer of
10cigarettes at the rate of 149 mills per cigarette sold or
11otherwise disposed of in the course of such business in this
12State. A tax is imposed upon any person engaged in business as
13a retailer of cigarettes in this State at the rate of 5 1/2
14mills per cigarette sold, or otherwise disposed of in the
15course of such business in this State. In addition to any other
16tax imposed by this Act, a tax is imposed upon any person
17engaged in business as a retailer of cigarettes in this State
18at a rate of 1/2 mill per cigarette sold or otherwise disposed
19of in the course of such business in this State on and after
20January 1, 1947, and shall be paid into the Metropolitan Fair
21and Exposition Authority Reconstruction Fund or as otherwise
22provided in Section 29. On and after December 1, 1985, in
23addition to any other tax imposed by this Act, a tax is imposed
24upon any person engaged in business as a retailer of cigarettes

 

 

10100SB0690ham003- 171 -LRB101 04451 SMS 61572 a

1in this State at a rate of 4 mills per cigarette sold or
2otherwise disposed of in the course of such business in this
3State. Of the additional tax imposed by this amendatory Act of
41985, $9,000,000 of the moneys received by the Department of
5Revenue pursuant to this Act shall be paid each month into the
6Common School Fund. On and after the effective date of this
7amendatory Act of 1989, in addition to any other tax imposed by
8this Act, a tax is imposed upon any person engaged in business
9as a retailer of cigarettes at the rate of 5 mills per
10cigarette sold or otherwise disposed of in the course of such
11business in this State. On and after the effective date of this
12amendatory Act of 1993, in addition to any other tax imposed by
13this Act, a tax is imposed upon any person engaged in business
14as a retailer of cigarettes at the rate of 7 mills per
15cigarette sold or otherwise disposed of in the course of such
16business in this State. On and after December 15, 1997, in
17addition to any other tax imposed by this Act, a tax is imposed
18upon any person engaged in business as a retailer of cigarettes
19at the rate of 7 mills per cigarette sold or otherwise disposed
20of in the course of such business of this State. All of the
21moneys received by the Department of Revenue pursuant to this
22Act and the Cigarette Use Tax Act from the additional taxes
23imposed by this amendatory Act of 1997, shall be paid each
24month into the Common School Fund. On and after July 1, 2002,
25in addition to any other tax imposed by this Act, a tax is
26imposed upon any person engaged in business as a retailer of

 

 

10100SB0690ham003- 172 -LRB101 04451 SMS 61572 a

1cigarettes at the rate of 20.0 mills per cigarette sold or
2otherwise disposed of in the course of such business in this
3State. Beginning on June 24, 2012, in addition to any other tax
4imposed by this Act, a tax is imposed upon any person engaged
5in business as a retailer of cigarettes at the rate of 50 mills
6per cigarette sold or otherwise disposed of in the course of
7such business in this State. All moneys received by the
8Department of Revenue under this Act and the Cigarette Use Tax
9Act from the additional taxes imposed by this amendatory Act of
10the 97th General Assembly shall be paid each month into the
11Healthcare Provider Relief Fund.
12    (b) The payment of such taxes shall be evidenced by a stamp
13affixed to each original package of cigarettes, or an
14authorized substitute for such stamp imprinted on each original
15package of such cigarettes underneath the sealed transparent
16outside wrapper of such original package, as hereinafter
17provided. However, such taxes are not imposed upon any activity
18in such business in interstate commerce or otherwise, which
19activity may not under the Constitution and statutes of the
20United States be made the subject of taxation by this State.
21    Beginning on the effective date of this amendatory Act of
22the 92nd General Assembly and through June 30, 2006, all of the
23moneys received by the Department of Revenue pursuant to this
24Act and the Cigarette Use Tax Act, other than the moneys that
25are dedicated to the Common School Fund, shall be distributed
26each month as follows: first, there shall be paid into the

 

 

10100SB0690ham003- 173 -LRB101 04451 SMS 61572 a

1General Revenue Fund an amount which, when added to the amount
2paid into the Common School Fund for that month, equals
3$33,300,000, except that in the month of August of 2004, this
4amount shall equal $83,300,000; then, from the moneys
5remaining, if any amounts required to be paid into the General
6Revenue Fund in previous months remain unpaid, those amounts
7shall be paid into the General Revenue Fund; then, beginning on
8April 1, 2003, from the moneys remaining, $5,000,000 per month
9shall be paid into the School Infrastructure Fund; then, if any
10amounts required to be paid into the School Infrastructure Fund
11in previous months remain unpaid, those amounts shall be paid
12into the School Infrastructure Fund; then the moneys remaining,
13if any, shall be paid into the Long-Term Care Provider Fund. To
14the extent that more than $25,000,000 has been paid into the
15General Revenue Fund and Common School Fund per month for the
16period of July 1, 1993 through the effective date of this
17amendatory Act of 1994 from combined receipts of the Cigarette
18Tax Act and the Cigarette Use Tax Act, notwithstanding the
19distribution provided in this Section, the Department of
20Revenue is hereby directed to adjust the distribution provided
21in this Section to increase the next monthly payments to the
22Long Term Care Provider Fund by the amount paid to the General
23Revenue Fund and Common School Fund in excess of $25,000,000
24per month and to decrease the next monthly payments to the
25General Revenue Fund and Common School Fund by that same excess
26amount.

 

 

10100SB0690ham003- 174 -LRB101 04451 SMS 61572 a

1    Beginning on July 1, 2006, all of the moneys received by
2the Department of Revenue pursuant to this Act and the
3Cigarette Use Tax Act, other than the moneys that are dedicated
4to the Common School Fund and, beginning on the effective date
5of this amendatory Act of the 97th General Assembly, other than
6the moneys from the additional taxes imposed by this amendatory
7Act of the 97th General Assembly that must be paid each month
8into the Healthcare Provider Relief Fund, and other than the
9moneys from the additional taxes imposed by this amendatory Act
10of the 101st General Assembly that must be paid each month
11under subsection (c), shall be distributed each month as
12follows: first, there shall be paid into the General Revenue
13Fund an amount that, when added to the amount paid into the
14Common School Fund for that month, equals $29,200,000; then,
15from the moneys remaining, if any amounts required to be paid
16into the General Revenue Fund in previous months remain unpaid,
17those amounts shall be paid into the General Revenue Fund; then
18from the moneys remaining, $5,000,000 per month shall be paid
19into the School Infrastructure Fund; then, if any amounts
20required to be paid into the School Infrastructure Fund in
21previous months remain unpaid, those amounts shall be paid into
22the School Infrastructure Fund; then the moneys remaining, if
23any, shall be paid into the Long-Term Care Provider Fund.
24    (c) Beginning on July 1, 2019, all of the moneys from the
25additional taxes imposed by this amendatory Act of the 101st
26General Assembly received by the Department of Revenue pursuant

 

 

10100SB0690ham003- 175 -LRB101 04451 SMS 61572 a

1to this Act and the Cigarette Use Tax Act shall be distributed
2each month into the Capital Projects Fund.
3    (d) Moneys collected from the tax imposed on little cigars
4under Section 10-10 of the Tobacco Products Tax Act of 1995
5shall be included with the moneys collected under the Cigarette
6Tax Act and the Cigarette Use Tax Act when making distributions
7to the Common School Fund, the Healthcare Provider Relief Fund,
8the General Revenue Fund, the School Infrastructure Fund, and
9the Long-Term Care Provider Fund under this Section.
10    (e) If the When any tax imposed herein terminates or has
11terminated, distributors who have bought stamps while such tax
12was in effect and who therefore paid such tax, but who can
13show, to the Department's satisfaction, that they sold the
14cigarettes to which they affixed such stamps after such tax had
15terminated and did not recover the tax or its equivalent from
16purchasers, shall be allowed by the Department to take credit
17for such absorbed tax against subsequent tax stamp purchases
18from the Department by such distributor.
19    (f) The impact of the tax levied by this Act is imposed
20upon the retailer and shall be prepaid or pre-collected by the
21distributor for the purpose of convenience and facility only,
22and the amount of the tax shall be added to the price of the
23cigarettes sold by such distributor. Collection of the tax
24shall be evidenced by a stamp or stamps affixed to each
25original package of cigarettes, as hereinafter provided. Any
26distributor who purchases stamps may credit any excess payments

 

 

10100SB0690ham003- 176 -LRB101 04451 SMS 61572 a

1verified by the Department against amounts subsequently due for
2the purchase of additional stamps, until such time as no excess
3payment remains.
4    (g) Each distributor shall collect the tax from the
5retailer at or before the time of the sale, shall affix the
6stamps as hereinafter required, and shall remit the tax
7collected from retailers to the Department, as hereinafter
8provided. Any distributor who fails to properly collect and pay
9the tax imposed by this Act shall be liable for the tax. Any
10distributor having cigarettes to which stamps have been affixed
11in his possession for sale on the effective date of this
12amendatory Act of 1989 shall not be required to pay the
13additional tax imposed by this amendatory Act of 1989 on such
14stamped cigarettes. Any distributor having cigarettes to which
15stamps have been affixed in his or her possession for sale at
1612:01 a.m. on the effective date of this amendatory Act of
171993, is required to pay the additional tax imposed by this
18amendatory Act of 1993 on such stamped cigarettes. This
19payment, less the discount provided in subsection (b), shall be
20due when the distributor first makes a purchase of cigarette
21tax stamps after the effective date of this amendatory Act of
221993, or on the first due date of a return under this Act after
23the effective date of this amendatory Act of 1993, whichever
24occurs first. Any distributor having cigarettes to which stamps
25have been affixed in his possession for sale on December 15,
261997 shall not be required to pay the additional tax imposed by

 

 

10100SB0690ham003- 177 -LRB101 04451 SMS 61572 a

1this amendatory Act of 1997 on such stamped cigarettes.
2    Any distributor having cigarettes to which stamps have been
3affixed in his or her possession for sale on July 1, 2002 shall
4not be required to pay the additional tax imposed by this
5amendatory Act of the 92nd General Assembly on those stamped
6cigarettes.
7    (h) Any distributor having cigarettes in his or her
8possession on July 1, 2019 to which tax stamps have been
9affixed, and any distributor having stamps in his or her
10possession on July 1, 2019 that have not been affixed to
11packages of cigarettes before July 1, 2019, is required to pay
12the additional tax that begins on July 1, 2019 imposed by this
13amendatory Act of the 101st General Assembly to the extent that
14the volume of affixed and unaffixed stamps in the distributor's
15possession on July 1, 2019 exceeds the average monthly volume
16of cigarette stamps purchased by the distributor in calendar
17year 2018. This payment, less the discount provided in
18subsection (l), is due when the distributor first makes a
19purchase of cigarette stamps on or after July 1, 2019 or on the
20first due date of a return under this Act occurring on or after
21July 1, 2019, whichever occurs first. Those distributors may
22elect to pay the additional tax on packages of cigarettes to
23which stamps have been affixed and on any stamps in the
24distributor's possession that have not been affixed to packages
25of cigarettes in their possession on July 1, 2019 over a period
26not to exceed 12 months from the due date of the additional tax

 

 

10100SB0690ham003- 178 -LRB101 04451 SMS 61572 a

1by notifying the Department in writing. The first payment for
2distributors making such election is due when the distributor
3first makes a purchase of cigarette tax stamps on or after July
41, 2019 or on the first due date of a return under this Act
5occurring on or after July 1, 2019, whichever occurs first.
6Distributors making such an election are not entitled to take
7the discount provided in subsection (l) on such payments.
8    (i) Any retailer having cigarettes in its his or her
9possession on July 1, 2019 June 24, 2012 to which tax stamps
10have been affixed is not required to pay the additional tax
11that begins on July 1, 2019 June 24, 2012 imposed by this
12amendatory Act of the 101st General Assembly this amendatory
13Act of the 97th General Assembly on those stamped cigarettes.
14Any distributor having cigarettes in his or her possession on
15June 24, 2012 to which tax stamps have been affixed, and any
16distributor having stamps in his or her possession on June 24,
172012 that have not been affixed to packages of cigarettes
18before June 24, 2012, is required to pay the additional tax
19that begins on June 24, 2012 imposed by this amendatory Act of
20the 97th General Assembly to the extent the calendar year 2012
21average monthly volume of cigarette stamps in the distributor's
22possession exceeds the average monthly volume of cigarette
23stamps purchased by the distributor in calendar year 2011. This
24payment, less the discount provided in subsection (b), is due
25when the distributor first makes a purchase of cigarette stamps
26on or after June 24, 2012 or on the first due date of a return

 

 

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1under this Act occurring on or after June 24, 2012, whichever
2occurs first. Those distributors may elect to pay the
3additional tax on packages of cigarettes to which stamps have
4been affixed and on any stamps in the distributor's possession
5that have not been affixed to packages of cigarettes over a
6period not to exceed 12 months from the due date of the
7additional tax by notifying the Department in writing. The
8first payment for distributors making such election is due when
9the distributor first makes a purchase of cigarette tax stamps
10on or after June 24, 2012 or on the first due date of a return
11under this Act occurring on or after June 24, 2012, whichever
12occurs first. Distributors making such an election are not
13entitled to take the discount provided in subsection (b) on
14such payments.
15    (j) Distributors making sales of cigarettes to secondary
16distributors shall add the amount of the tax to the price of
17the cigarettes sold by the distributors. Secondary
18distributors making sales of cigarettes to retailers shall
19include the amount of the tax in the price of the cigarettes
20sold to retailers. The amount of tax shall not be less than the
21amount of taxes imposed by the State and all local
22jurisdictions. The amount of local taxes shall be calculated
23based on the location of the retailer's place of business shown
24on the retailer's certificate of registration or
25sub-registration issued to the retailer pursuant to Section 2a
26of the Retailers' Occupation Tax Act. The original packages of

 

 

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1cigarettes sold to the retailer shall bear all the required
2stamps, or other indicia, for the taxes included in the price
3of cigarettes.
4    (k) The amount of the Cigarette Tax imposed by this Act
5shall be separately stated, apart from the price of the goods,
6by distributors, manufacturer representatives, secondary
7distributors, and retailers, in all bills and sales invoices.
8    (l) (b) The distributor shall be required to collect the
9tax taxes provided under paragraph (a) hereof, and, to cover
10the costs of such collection, shall be allowed a discount
11during any year commencing July 1st and ending the following
12June 30th in accordance with the schedule set out hereinbelow,
13which discount shall be allowed at the time of purchase of the
14stamps when purchase is required by this Act, or at the time
15when the tax is remitted to the Department without the purchase
16of stamps from the Department when that method of paying the
17tax is required or authorized by this Act. Prior to December 1,
181985, a discount equal to 1 2/3% of the amount of the tax up to
19and including the first $700,000 paid hereunder by such
20distributor to the Department during any such year; 1 1/3% of
21the next $700,000 of tax or any part thereof, paid hereunder by
22such distributor to the Department during any such year; 1% of
23the next $700,000 of tax, or any part thereof, paid hereunder
24by such distributor to the Department during any such year, and
252/3 of 1% of the amount of any additional tax paid hereunder by
26such distributor to the Department during any such year shall

 

 

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1apply.
2    On and after December 1, 1985, a discount equal to 1.75% of
3the amount of the tax payable under this Act up to and
4including the first $3,000,000 paid hereunder by such
5distributor to the Department during any such year and 1.5% of
6the amount of any additional tax paid hereunder by such
7distributor to the Department during any such year shall apply.
8    Two or more distributors that use a common means of
9affixing revenue tax stamps or that are owned or controlled by
10the same interests shall be treated as a single distributor for
11the purpose of computing the discount.
12    (m) (c) The taxes herein imposed are in addition to all
13other occupation or privilege taxes imposed by the State of
14Illinois, or by any political subdivision thereof, or by any
15municipal corporation.
16(Source: P.A. 100-1171, eff. 1-4-19.)
 
17    (35 ILCS 130/29 rep.)
18    Section 15-55. The Cigarette Tax Act is amended by
19repealing Section 29.
 
20    Section 15-60. The Cigarette Use Tax Act is amended by
21changing Sections 2 and 35 as follows:
 
22    (35 ILCS 135/2)  (from Ch. 120, par. 453.32)
23    Sec. 2. Beginning on July 1, 2019, in place of the

 

 

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1aggregate tax rate of 99 mills previously imposed by this Act,
2a tax is imposed upon the privilege of using cigarettes in this
3State at the rate of 149 mills per cigarette so used. A tax is
4imposed upon the privilege of using cigarettes in this State,
5at the rate of 6 mills per cigarette so used. On and after
6December 1, 1985, in addition to any other tax imposed by this
7Act, a tax is imposed upon the privilege of using cigarettes in
8this State at a rate of 4 mills per cigarette so used. On and
9after the effective date of this amendatory Act of 1989, in
10addition to any other tax imposed by this Act, a tax is imposed
11upon the privilege of using cigarettes in this State at the
12rate of 5 mills per cigarette so used. On and after the
13effective date of this amendatory Act of 1993, in addition to
14any other tax imposed by this Act, a tax is imposed upon the
15privilege of using cigarettes in this State at a rate of 7
16mills per cigarette so used. On and after December 15, 1997, in
17addition to any other tax imposed by this Act, a tax is imposed
18upon the privilege of using cigarettes in this State at a rate
19of 7 mills per cigarette so used. On and after July 1, 2002, in
20addition to any other tax imposed by this Act, a tax is imposed
21upon the privilege of using cigarettes in this State at a rate
22of 20.0 mills per cigarette so used. Beginning on June 24,
232012, in addition to any other tax imposed by this Act, a tax
24is imposed upon the privilege of using cigarettes in this State
25at a rate of 50 mills per cigarette so used. The tax taxes
26herein imposed shall be in addition to all other occupation or

 

 

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1privilege taxes imposed by the State of Illinois or by any
2political subdivision thereof or by any municipal corporation.
3    If the When any tax imposed herein terminates or has
4terminated, distributors who have bought stamps while such tax
5was in effect and who therefore paid such tax, but who can
6show, to the Department's satisfaction, that they sold the
7cigarettes to which they affixed such stamps after such tax had
8terminated and did not recover the tax or its equivalent from
9purchasers, shall be allowed by the Department to take credit
10for such absorbed tax against subsequent tax stamp purchases
11from the Department by such distributors.
12    When the word "tax" is used in this Act, it shall include
13any tax or tax rate imposed by this Act and shall mean the
14singular of "tax" or the plural "taxes" as the context may
15require.
16    Any retailer having cigarettes in its possession on July 1,
172019 to which tax stamps have been affixed is not required to
18pay the additional tax that begins on July 1, 2019 imposed by
19this amendatory Act of the 101st General Assembly on those
20stamped cigarettes. Any distributor having cigarettes in his or
21her possession on July 1, 2019 to which tax stamps have been
22affixed, and any distributor having stamps in his or her
23possession on July 1, 2019 that have not been affixed to
24packages of cigarettes before July 1, 2019, is required to pay
25the additional tax that begins on July 1, 2019 imposed by this
26amendatory Act of the 101st General Assembly to the extent that

 

 

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1the volume of affixed and unaffixed stamps in the distributor's
2possession on July 1, 2019 exceeds the average monthly volume
3of cigarette stamps purchased by the distributor in calendar
4year 2018. This payment, less the discount provided in Section
53, is due when the distributor first makes a purchase of
6cigarette stamps on or after July 1, 2019 or on the first due
7date of a return under this Act occurring on or after July 1,
82019, whichever occurs first. Those distributors may elect to
9pay the additional tax on packages of cigarettes to which
10stamps have been affixed and on any stamps in the distributor's
11possession that have not been affixed to packages of cigarettes
12in their possession on July 1, 2019 over a period not to exceed
1312 months from the due date of the additional tax by notifying
14the Department in writing. The first payment for distributors
15making such election is due when the distributor first makes a
16purchase of cigarette tax stamps on or after July 1, 2019 or on
17the first due date of a return under this Act occurring on or
18after July 1, 2019, whichever occurs first. Distributors making
19such an election are not entitled to take the discount provided
20in Section 3 on such payments.
21    Any distributor having cigarettes to which stamps have been
22affixed in his possession for sale on the effective date of
23this amendatory Act of 1989 shall not be required to pay the
24additional tax imposed by this amendatory Act of 1989 on such
25stamped cigarettes. Any distributor having cigarettes to which
26stamps have been affixed in his or her possession for sale at

 

 

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112:01 a.m. on the effective date of this amendatory Act of
21993, is required to pay the additional tax imposed by this
3amendatory Act of 1993 on such stamped cigarettes. This payment
4shall be due when the distributor first makes a purchase of
5cigarette tax stamps after the effective date of this
6amendatory Act of 1993, or on the first due date of a return
7under this Act after the effective date of this amendatory Act
8of 1993, whichever occurs first. Once a distributor tenders
9payment of the additional tax to the Department, the
10distributor may purchase stamps from the Department. Any
11distributor having cigarettes to which stamps have been affixed
12in his possession for sale on December 15, 1997 shall not be
13required to pay the additional tax imposed by this amendatory
14Act of 1997 on such stamped cigarettes.
15    Any distributor having cigarettes to which stamps have been
16affixed in his or her possession for sale on July 1, 2002 shall
17not be required to pay the additional tax imposed by this
18amendatory Act of the 92nd General Assembly on those stamped
19cigarettes.
20    Any retailer having cigarettes in his or her possession on
21June 24, 2012 to which tax stamps have been affixed is not
22required to pay the additional tax that begins on June 24, 2012
23imposed by this amendatory Act of the 97th General Assembly on
24those stamped cigarettes. Any distributor having cigarettes in
25his or her possession on June 24, 2012 to which tax stamps have
26been affixed, and any distributor having stamps in his or her

 

 

10100SB0690ham003- 186 -LRB101 04451 SMS 61572 a

1possession on June 24, 2012 that have not been affixed to
2packages of cigarettes before June 24, 2012, is required to pay
3the additional tax that begins on June 24, 2012 imposed by this
4amendatory Act of the 97th General Assembly to the extent the
5calendar year 2012 average monthly volume of cigarette stamps
6in the distributor's possession exceeds the average monthly
7volume of cigarette stamps purchased by the distributor in
8calendar year 2011. This payment, less the discount provided in
9Section 3, is due when the distributor first makes a purchase
10of cigarette stamps on or after June 24, 2012 or on the first
11due date of a return under this Act occurring on or after June
1224, 2012, whichever occurs first. Those distributors may elect
13to pay the additional tax on packages of cigarettes to which
14stamps have been affixed and on any stamps in the distributor's
15possession that have not been affixed to packages of cigarettes
16over a period not to exceed 12 months from the due date of the
17additional tax by notifying the Department in writing. The
18first payment for distributors making such election is due when
19the distributor first makes a purchase of cigarette tax stamps
20on or after June 24, 2012 or on the first due date of a return
21under this Act occurring on or after June 24, 2012, whichever
22occurs first. Distributors making such an election are not
23entitled to take the discount provided in Section 3 on such
24payments.
25(Source: P.A. 97-688, eff. 6-14-12.)
 

 

 

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1    (35 ILCS 135/35)  (from Ch. 120, par. 453.65)
2    Sec. 35. Distribution of receipts. All moneys received by
3the Department under this Act shall be distributed as provided
4in subsection (a) of Section 2 of the Cigarette Tax Act.
5(Source: P.A. 88-535.)
 
6    Section 15-65. The Tobacco Products Tax Act of 1995 is
7amended by changing Sections 10-5 and 10-10 as follows:
 
8    (35 ILCS 143/10-5)
9    Sec. 10-5. Definitions. For purposes of this Act:
10    "Business" means any trade, occupation, activity, or
11enterprise engaged in, at any location whatsoever, for the
12purpose of selling tobacco products.
13    "Cigarette" has the meaning ascribed to the term in Section
141 of the Cigarette Tax Act.
15    "Contraband little cigar" means:
16        (1) packages of little cigars containing 20 or 25
17    little cigars that do not bear a required tax stamp under
18    this Act;
19        (2) packages of little cigars containing 20 or 25
20    little cigars that bear a fraudulent, imitation, or
21    counterfeit tax stamp;
22        (3) packages of little cigars containing 20 or 25
23    little cigars that are improperly tax stamped, including
24    packages of little cigars that bear only a tax stamp of

 

 

10100SB0690ham003- 188 -LRB101 04451 SMS 61572 a

1    another state or taxing jurisdiction; or
2        (4) packages of little cigars containing other than 20
3    or 25 little cigars in the possession of a distributor,
4    retailer or wholesaler, unless the distributor, retailer,
5    or wholesaler possesses, or produces within the time frame
6    provided in Section 10-27 or 10-28 of this Act, an invoice
7    from a stamping distributor, distributor, or wholesaler
8    showing that the tax on the packages has been or will be
9    paid.
10    "Correctional Industries program" means a program run by a
11State penal institution in which residents of the penal
12institution produce tobacco products for sale to persons
13incarcerated in penal institutions or resident patients of a
14State operated mental health facility.
15    "Department" means the Illinois Department of Revenue.
16    "Distributor" means any of the following:
17        (1) Any manufacturer or wholesaler in this State
18    engaged in the business of selling tobacco products who
19    sells, exchanges, or distributes tobacco products to
20    retailers or consumers in this State.
21        (2) Any manufacturer or wholesaler engaged in the
22    business of selling tobacco products from without this
23    State who sells, exchanges, distributes, ships, or
24    transports tobacco products to retailers or consumers
25    located in this State, so long as that manufacturer or
26    wholesaler has or maintains within this State, directly or

 

 

10100SB0690ham003- 189 -LRB101 04451 SMS 61572 a

1    by subsidiary, an office, sales house, or other place of
2    business, or any agent or other representative operating
3    within this State under the authority of the person or
4    subsidiary, irrespective of whether the place of business
5    or agent or other representative is located here
6    permanently or temporarily.
7        (3) Any retailer who receives tobacco products on which
8    the tax has not been or will not be paid by another
9    distributor.
10    "Distributor" does not include any person, wherever
11resident or located, who makes, manufactures, or fabricates
12tobacco products as part of a Correctional Industries program
13for sale to residents incarcerated in penal institutions or
14resident patients of a State operated mental health facility.
15    "Electronic cigarette" means:
16        (1) any device that employs a battery or other
17    mechanism to heat a solution or substance to produce a
18    vapor or aerosol intended for inhalation;
19        (2) any cartridge or container of a solution or
20    substance intended to be used with or in the device or to
21    refill the device; or
22        (3) any solution or substance, whether or not it
23    contains nicotine, intended for use in the device.
24    "Electronic cigarette" includes, but is not limited to, any
25electronic nicotine delivery system, electronic cigar,
26electronic cigarillo, electronic pipe, electronic hookah, vape

 

 

10100SB0690ham003- 190 -LRB101 04451 SMS 61572 a

1pen, or similar product or device, and any component or part
2that can be used to build the product or device. "Electronic
3cigarette" does not include: cigarettes, as defined in Section
41 of the Cigarette Tax Act; any product approved by the United
5States Food and Drug Administration for sale as a tobacco
6cessation product, a tobacco dependence product, or for other
7medical purposes that is marketed and sold solely for that
8approved purpose; any asthma inhaler prescribed by a physician
9for that condition that is marketed and sold solely for that
10approved purpose; or any therapeutic product approved for use
11under the Compassionate Use of Medical Cannabis Pilot Program
12Act.
13    "Little cigar" means and includes any roll, made wholly or
14in part of tobacco, where such roll has an integrated cellulose
15acetate filter and weighs less than 4 pounds per thousand and
16the wrapper or cover of which is made in whole or in part of
17tobacco.
18    "Manufacturer" means any person, wherever resident or
19located, who manufactures and sells tobacco products, except a
20person who makes, manufactures, or fabricates tobacco products
21as a part of a Correctional Industries program for sale to
22persons incarcerated in penal institutions or resident
23patients of a State operated mental health facility.
24    Beginning on January 1, 2013, "moist snuff" means any
25finely cut, ground, or powdered tobacco that is not intended to
26be smoked, but shall not include any finely cut, ground, or

 

 

10100SB0690ham003- 191 -LRB101 04451 SMS 61572 a

1powdered tobacco that is intended to be placed in the nasal
2cavity.
3    "Person" means any natural individual, firm, partnership,
4association, joint stock company, joint venture, limited
5liability company, or public or private corporation, however
6formed, or a receiver, executor, administrator, trustee,
7conservator, or other representative appointed by order of any
8court.
9    "Place of business" means and includes any place where
10tobacco products are sold or where tobacco products are
11manufactured, stored, or kept for the purpose of sale or
12consumption, including any vessel, vehicle, airplane, train,
13or vending machine.
14    "Retailer" means any person in this State engaged in the
15business of selling tobacco products to consumers in this
16State, regardless of quantity or number of sales.
17    "Sale" means any transfer, exchange, or barter in any
18manner or by any means whatsoever for a consideration and
19includes all sales made by persons.
20    "Stamp" or "stamps" mean the indicia required to be affixed
21on a package of little cigars that evidence payment of the tax
22on packages of little cigars containing 20 or 25 little cigars
23under Section 10-10 of this Act. These stamps shall be the same
24stamps used for cigarettes under the Cigarette Tax Act.
25    "Stamping distributor" means a distributor licensed under
26this Act and also licensed as a distributor under the Cigarette

 

 

10100SB0690ham003- 192 -LRB101 04451 SMS 61572 a

1Tax Act or Cigarette Use Tax Act.
2    "Tobacco products" means any cigars, including little
3cigars; cheroots; stogies; periques; granulated, plug cut,
4crimp cut, ready rubbed, and other smoking tobacco; snuff
5(including moist snuff) or snuff flour; cavendish; plug and
6twist tobacco; fine-cut and other chewing tobaccos; shorts;
7refuse scraps, clippings, cuttings, and sweeping of tobacco;
8and other kinds and forms of tobacco, prepared in such manner
9as to be suitable for chewing or smoking in a pipe or
10otherwise, or both for chewing and smoking; but does not
11include cigarettes as defined in Section 1 of the Cigarette Tax
12Act or tobacco purchased for the manufacture of cigarettes by
13cigarette distributors and manufacturers defined in the
14Cigarette Tax Act and persons who make, manufacture, or
15fabricate cigarettes as a part of a Correctional Industries
16program for sale to residents incarcerated in penal
17institutions or resident patients of a State operated mental
18health facility.
19    Beginning on July 1, 2019, "tobacco products" also includes
20electronic cigarettes.
21    "Wholesale price" means the established list price for
22which a manufacturer sells tobacco products to a distributor,
23before the allowance of any discount, trade allowance, rebate,
24or other reduction. In the absence of such an established list
25price, the manufacturer's invoice price at which the
26manufacturer sells the tobacco product to unaffiliated

 

 

10100SB0690ham003- 193 -LRB101 04451 SMS 61572 a

1distributors, before any discounts, trade allowances, rebates,
2or other reductions, shall be presumed to be the wholesale
3price.
4    "Wholesaler" means any person, wherever resident or
5located, engaged in the business of selling tobacco products to
6others for the purpose of resale. "Wholesaler", when used in
7this Act, does not include a person licensed as a distributor
8under Section 10-20 of this Act unless expressly stated in this
9Act.
10(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13;
1198-1055, eff. 1-1-16.)
 
12    (35 ILCS 143/10-10)
13    Sec. 10-10. Tax imposed.
14    (a) Except as otherwise provided in this Section with
15respect to little cigars, on the first day of the third month
16after the month in which this Act becomes law, a tax is imposed
17on any person engaged in business as a distributor of tobacco
18products, as defined in Section 10-5, at the rate of (i) 18% of
19the wholesale price of tobacco products sold or otherwise
20disposed of to retailers or consumers located in this State
21prior to July 1, 2012 and (ii) 36% of the wholesale price of
22tobacco products sold or otherwise disposed of to retailers or
23consumers located in this State beginning on July 1, 2012;
24except that, beginning on January 1, 2013, the tax on moist
25snuff shall be imposed at a rate of $0.30 per ounce, and a

 

 

10100SB0690ham003- 194 -LRB101 04451 SMS 61572 a

1proportionate tax at the like rate on all fractional parts of
2an ounce, sold or otherwise disposed of to retailers or
3consumers located in this State; and except that, beginning
4July 1, 2019, the tax on electronic cigarettes shall be imposed
5at the rate of 15% of the wholesale price of electronic
6cigarettes sold or otherwise disposed of to retailers or
7consumers located in this State. The tax is in addition to all
8other occupation or privilege taxes imposed by the State of
9Illinois, by any political subdivision thereof, or by any
10municipal corporation. However, the tax is not imposed upon any
11activity in that business in interstate commerce or otherwise,
12to the extent to which that activity may not, under the
13Constitution and Statutes of the United States, be made the
14subject of taxation by this State, and except that, beginning
15July 1, 2013, the tax on little cigars shall be imposed at the
16same rate, and the proceeds shall be distributed in the same
17manner, as the tax imposed on cigarettes under the Cigarette
18Tax Act. The tax is also not imposed on sales made to the
19United States or any entity thereof.
20    (b) Notwithstanding subsection (a) of this Section,
21stamping distributors of packages of little cigars containing
2220 or 25 little cigars sold or otherwise disposed of in this
23State shall remit the tax by purchasing tax stamps from the
24Department and affixing them to packages of little cigars in
25the same manner as stamps are purchased and affixed to
26cigarettes under the Cigarette Tax Act, unless the stamping

 

 

10100SB0690ham003- 195 -LRB101 04451 SMS 61572 a

1distributor sells or otherwise disposes of those packages of
2little cigars to another stamping distributor. Only persons
3meeting the definition of "stamping distributor" contained in
4Section 10-5 of this Act may affix stamps to packages of little
5cigars containing 20 or 25 little cigars. Stamping distributors
6may not sell or dispose of little cigars at retail to consumers
7or users at locations where stamping distributors affix stamps
8to packages of little cigars containing 20 or 25 little cigars.
9    (c) The impact of the tax levied by this Act is imposed
10upon distributors engaged in the business of selling tobacco
11products to retailers or consumers in this State. Whenever a
12stamping distributor brings or causes to be brought into this
13State from without this State, or purchases from without or
14within this State, any packages of little cigars containing 20
15or 25 little cigars upon which there are no tax stamps affixed
16as required by this Act, for purposes of resale or disposal in
17this State to a person not a stamping distributor, then such
18stamping distributor shall pay the tax to the Department and
19add the amount of the tax to the price of such packages sold by
20such stamping distributor. Payment of the tax shall be
21evidenced by a stamp or stamps affixed to each package of
22little cigars containing 20 or 25 little cigars.
23    Stamping distributors paying the tax to the Department on
24packages of little cigars containing 20 or 25 little cigars
25sold to other distributors, wholesalers or retailers shall add
26the amount of the tax to the price of the packages of little

 

 

10100SB0690ham003- 196 -LRB101 04451 SMS 61572 a

1cigars containing 20 or 25 little cigars sold by such stamping
2distributors.
3    (d) Beginning on January 1, 2013, the tax rate imposed per
4ounce of moist snuff may not exceed 15% of the tax imposed upon
5a package of 20 cigarettes pursuant to the Cigarette Tax Act.
6    (e) All moneys received by the Department under this Act
7from sales occurring prior to July 1, 2012 shall be paid into
8the Long-Term Care Provider Fund of the State Treasury. Of the
9moneys received by the Department from sales occurring on or
10after July 1, 2012, except for moneys received from the tax
11imposed on the sale of little cigars, 50% shall be paid into
12the Long-Term Care Provider Fund and 50% shall be paid into the
13Healthcare Provider Relief Fund. Beginning July 1, 2013, all
14moneys received by the Department under this Act from the tax
15imposed on little cigars shall be distributed as provided in
16subsection (a) of Section 2 of the Cigarette Tax Act.
17(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
 
18    Section 15-75. The Motor Vehicle Retail Installment Sales
19Act is amended by changing Section 11.1 as follows:
 
20    (815 ILCS 375/11.1)  (from Ch. 121 1/2, par. 571.1)
21    Sec. 11.1.
22    (a) A seller in a retail installment contract may add a
23"documentary fee" for processing documents and performing
24services related to closing of a sale. The maximum amount that

 

 

10100SB0690ham003- 197 -LRB101 04451 SMS 61572 a

1may be charged by a seller for a documentary fee is the base
2documentary fee beginning January 1, 2008 until January 1,
32020, of $150, which shall be subject to an annual rate
4adjustment equal to the percentage of change in the Bureau of
5Labor Statistics Consumer Price Index. Every retail
6installment contract under this Act shall contain or be
7accompanied by a notice containing the following information:
8    "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
9A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
10BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
11TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
12JANUARY 1, 2008, WAS $150. THE MAXIMUM AMOUNT THAT MAY BE
13CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
14$150, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
15TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
16CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
17    (b) A seller in a retail installment contract may add a
18"documentary fee" for processing documents and performing
19services related to closing of a sale. The maximum amount that
20may be charged by a seller for a documentary fee is the base
21documentary fee beginning January 1, 2020, of $300, which shall
22be subject to an annual rate adjustment equal to the percentage
23of change in the Bureau of Labor Statistics Consumer Price
24Index. Every retail installment contract under this Act shall
25contain or be accompanied by a notice containing the following
26information:

 

 

10100SB0690ham003- 198 -LRB101 04451 SMS 61572 a

1    "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
2A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
3BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
4TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
5JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE
6CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
7$300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
8TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
9CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
10(Source: P.A. 95-280, eff. 1-1-08.)
 
11
Article 20. Illinois Works Jobs Program Act

 
12    Section 20-1. Short title. This Article may be cited as the
13Illinois Works Jobs Program Act. References in this Article to
14"this Act" mean this Article.
 
15    Section 20-5. Findings. It is in the public policy interest
16of the State to ensure that all Illinois residents have access
17to State capital projects and careers in the construction
18industry and building trades, including those who have been
19historically underrepresented in those trades. To ensure that
20those interests are met, the General Assembly hereby creates
21the Illinois Works Preapprenticeship Program and the Illinois
22Works Apprenticeship Initiative.
 

 

 

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1    Section 20-10. Definitions.
2    "Apprentice" means a participant in an apprenticeship
3program approved by and registered with the United States
4Department of Labor's Bureau of Apprenticeship and Training.
5    "Apprenticeship program" means an apprenticeship and
6training program approved by and registered with the United
7States Department of Labor's Bureau of Apprenticeship and
8Training.
9    "Bid credit" means a virtual dollar for a contractor or
10subcontractor to use toward future bids for public works
11contracts.
12    "Community-based organization" means a nonprofit
13organization selected by the Department to participate in the
14Illinois Works Preapprenticeship Program. To qualify as a
15"community-based organization", the organization must
16demonstrate the following:
17        (1) the ability to effectively serve diverse and
18    underrepresented populations, including by providing
19    employment services to such populations;
20        (2) knowledge of the construction and building trades;
21        (3) the ability to recruit, prescreen, and provide
22    preapprenticeship training to prepare workers for
23    employment in the construction and building trades; and
24        (4) a plan to provide the following:
25            (A) preparatory classes;
26            (B) workplace readiness skills, such as resume

 

 

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1        preparation and interviewing techniques;
2            (C) strategies for overcoming barriers to entry
3        and completion of an apprenticeship program; and
4            (D) any prerequisites for acceptance into an
5        apprenticeship program.
6    "Contractor" means a person, corporation, partnership,
7limited liability company, or joint venture entering into a
8contract with the State or any State agency to construct a
9public work.
10    "Department" means the Department of Commerce and Economic
11Opportunity.
12    "Labor hours" means the total hours for workers who are
13receiving an hourly wage and who are directly employed for the
14public works project. "Labor hours" includes hours performed by
15workers employed by the contractor and subcontractors on the
16public works project. "Labor hours" does not include hours
17worked by the forepersons, superintendents, owners, and
18workers who are not subject to prevailing wage requirements.
19    "Minorities" means minority persons as defined in the
20Business Enterprise for Minorities, Women, and Persons with
21Disabilities Act.
22    "Public works" means all projects that constitute public
23works under the Prevailing Wage Act.
24    "Subcontractor" means a person, corporation, partnership,
25limited liability company, or joint venture that has contracted
26with the contractor to perform all or part of the work to

 

 

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1construct a public work by a contractor.
2    "Underrepresented populations" means populations
3identified by the Department that historically have had
4barriers to entry or advancement in the workforce.
5"Underrepresented populations" includes, but is not limited
6to, minorities, women, and veterans.
 
7    Section 20-15. Illinois Works Preapprenticeship Program;
8Illinois Works Bid Credit Program.
9    (a) The Illinois Works Preapprenticeship Program is
10established and shall be administered by the Department. The
11goal of the Illinois Works Preapprenticeship Program is to
12create a network of community-based organizations throughout
13the State that will recruit, prescreen, and provide
14preapprenticeship skills training to create a qualified,
15diverse pipeline of workers who are prepared for careers in the
16construction and building trades. Upon completion of the
17Illinois Works Preapprenticeship Program, the candidates will
18be skilled and work-ready.
19    (b) There is created the Illinois Works Fund, a special
20fund in the State treasury. The Illinois Works Fund shall be
21administered by the Department. The Illinois Works Fund shall
22be used to provide funding for community-based organizations
23throughout the State. In addition to any other transfers that
24may be provided for by law, on and after July 1, 2019 and until
25June 30, 2020, at the direction of the Director of the

 

 

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1Governor's Office of Management and Budget, the State
2Comptroller shall direct and the State Treasurer shall transfer
3amounts not exceeding a total of $25,000,000 from the Rebuild
4Illinois Projects Fund to the Illinois Works Fund.
5    (c) Each community-based organization that receives
6funding from the Illinois Works Fund shall provide an annual
7report to the Illinois Works Review Panel by April 1 of each
8calendar year. The annual report shall include the following
9information:
10        (1) a description of the community-based
11    organization's recruitment, screening, and training
12    efforts;
13        (2) the number of individuals who apply to, participate
14    in, and complete the community-based organization's
15    program, broken down by race, gender, age, and veteran
16    status; and
17        (3) the number of the individuals referenced in item
18    (2) of this subsection who are initially accepted and
19    placed into apprenticeship programs in the construction
20    and building trades.
21    (d) The Department shall create and administer the Illinois
22Works Bid Credit Program that shall provide economic
23incentives, through bid credits, to encourage contractors and
24subcontractors to provide contracting and employment
25opportunities to historically underrepresented populations in
26the construction industry.

 

 

10100SB0690ham003- 203 -LRB101 04451 SMS 61572 a

1    The Illinois Works Bid Credit Program shall allow
2contractors and subcontractors to earn bid credits for use
3toward future bids for public works projects in order to
4increase the chances that the contractor and the subcontractors
5will be selected.
6    Contractors or subcontractors may be eligible for bid
7credits for employing apprentices who have completed the
8Illinois Works Preapprenticeship Program. Contractors or
9subcontractors shall earn bid credits at a rate established by
10the Department and published on the Department's website,
11including any appropriate caps.
12    The Illinois Works Credit Bank is hereby created and shall
13be administered by the Department. The Illinois Works Credit
14Bank shall track the bid credits.
15    A contractor or subcontractor who has been awarded bid
16credits under any other State program for employing apprentices
17who have completed the Illinois Works Preapprenticeship
18Program is not eligible to receive bid credits under the
19Illinois Works Bid Credit Program relating to the same
20contract.
21    The Department shall report to the Illinois Works Review
22Panel the following: (i) the number of bid credits awarded by
23the Department; (ii) the number of bid credits submitted by the
24contractor or subcontractor to the agency administering the
25public works contract; and (iii) the number of bid credits
26accepted by the agency for such contract. Any agency that

 

 

10100SB0690ham003- 204 -LRB101 04451 SMS 61572 a

1awards bid credits pursuant to the Illinois Works Credit Bank
2Program shall report to the Department the number of bid
3credits it accepted for the public works contract.
4    Upon a finding that a contractor or subcontractor has
5reported falsified records to the Department in order to
6fraudulently obtain bid credits, the Department shall
7permanently bar the contractor or subcontractor from
8participating in the Illinois Works Bid Credit Program and may
9suspend the contractor or subcontractor from bidding on or
10participating in any public works project. False or fraudulent
11claims for payment relating to false bid credits may be subject
12to damages and penalties under applicable law.
13    (e) The Department shall adopt any rules deemed necessary
14to implement this Section.
 
15    Section 20-20. Illinois Works Apprenticeship Initiative.
16    (a) The Illinois Works Apprenticeship Initiative is
17established and shall be administered by the Department.
18        (1) Subject to the exceptions set forth in subsection
19    (b) of this Section, apprentices shall be utilized on all
20    public works projects in accordance with this subsection
21    (a).
22        (2) For public works projects, the goal of the Illinois
23    Works Apprenticeship Initiative is that apprentices will
24    perform either 10% of the total labor hours actually worked
25    in each prevailing wage classification or 10% of the

 

 

10100SB0690ham003- 205 -LRB101 04451 SMS 61572 a

1    estimated labor hours in each prevailing wage
2    classification, whichever is less.
3    (b) Before or during the term of a contract subject to this
4Section, the Department may reduce or waive the goals set forth
5in paragraph (2) of subsection (a). Prior to the Department
6granting a request for a reduction or waiver, the Department
7shall hold a public hearing and shall consult with the Business
8Enterprise Council under the Business Enterprise for
9Minorities, Women, and Persons with Disabilities Act and the
10Chief Procurement Officer of the agency administering the
11public works contract. The Department may grant a reduction or
12waiver upon a determination that:
13        (1) the contractor or subcontractor has demonstrated
14    that insufficient apprentices are available;
15        (2) the reasonable and necessary requirements of the
16    contract do not allow the goal to be met;
17        (3) there is a disproportionately high ratio of
18    material costs to labor hours that makes meeting the goal
19    infeasible; or
20        (4) apprentice labor hour goals conflict with existing
21    requirements, including federal requirements, in
22    connection with the public work.
23    (c) Contractors and subcontractors must submit a
24certification to the Department and the agency that is
25administering the contract demonstrating that the contractor
26or subcontractor has either:

 

 

10100SB0690ham003- 206 -LRB101 04451 SMS 61572 a

1        (1) met the apprentice labor hour goals set forth in
2    paragraph (2) of subsection (a); or
3        (2) received a reduction or waiver pursuant to
4    subsection (b).
5    It shall be deemed to be a material breach of the contract
6and entitle the State to declare a default, terminate the
7contract, and exercise those remedies provided for in the
8contract, at law, or in equity if the contractor or
9subcontractor fails to submit the certification required in
10this subsection or submits false or misleading information.
11    (d) No later than one year after the effective date of this
12Act, and by April 1 of every calendar year thereafter, the
13Department of Labor shall submit a report to the Illinois Works
14Review Panel regarding the use of apprentices under the
15Illinois Works Apprenticeship Initiative for public works
16projects. To the extent it is available, the report shall
17include the following information:
18        (1) the total number of labor hours on each project and
19    the percentage of labor hours actually worked by
20    apprentices on each public works project;
21        (2) the number of apprentices used in each public works
22    project, broken down by trade; and
23        (3) the number and percentage of minorities, women, and
24    veterans utilized as apprentices on each public works
25    project.
26    (e) The Department shall adopt any rules deemed necessary

 

 

10100SB0690ham003- 207 -LRB101 04451 SMS 61572 a

1to implement the Illinois Works Apprenticeship Initiative.
2    (f) The Illinois Works Apprenticeship Initiative shall not
3interfere with any contracts or program in existence on the
4effective date of this Act.
 
5    Section 20-25. The Illinois Works Review Panel.
6    (a) The Illinois Works Review Panel is created and shall be
7comprised of 11 members, each serving 3-year terms. The Speaker
8of the House of Representatives and the President of the Senate
9shall each appoint 2 members. The Minority Leader of the House
10of Representatives and the Minority Leader of the Senate shall
11each appoint one member. The Director of Commerce and Economic
12Opportunity, or his or her designee, shall serve as a member.
13The Governor shall appoint the following individuals to serve
14as members: a representative from a contractor organization; a
15representative from a labor organization; and 2 members of the
16public with workforce development expertise, one of whom shall
17be a representative of a nonprofit organization that addresses
18workforce development.
19    (b) The members of the Illinois Works Review Panel shall
20make recommendations to the Department regarding
21identification and evaluation of community-based
22organizations.
23    (c) The Illinois Works Review Panel shall meet, at least
24quarterly, to review and evaluate (i) the Illinois Works
25Preapprenticeship Program and the Illinois Works

 

 

10100SB0690ham003- 208 -LRB101 04451 SMS 61572 a

1Apprenticeship Initiative, (ii) ideas to diversify the
2workforce in the construction industry in Illinois, and (iii)
3workforce demographic data collected by the Illinois
4Department of Labor.
5    (d) All State contracts shall include a requirement that
6the contractor and subcontractor shall, upon reasonable
7notice, appear before and respond to requests for information
8from the Illinois Works Review Panel.
9    (e) By August 1, 2020, and every August 1 thereafter, the
10Illinois Works Review Panel shall report to the General
11Assembly on its evaluation of the Illinois Works
12Preapprenticeship Program and the Illinois Works
13Apprenticeship initiative, including any recommended
14modifications.
 
15    Section 20-900. The State Finance Act is amended by adding
16Section 5.895 as follows:
 
17    (30 ILCS 105/5.895 new)
18    Sec. 5.895. The Illinois Works Fund.
 
19    Section 20-905. The Illinois Procurement Code is amended by
20changing Section 20-10 as follows:
 
21    (30 ILCS 500/20-10)
22    (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,

 

 

10100SB0690ham003- 209 -LRB101 04451 SMS 61572 a

198-1076, 99-906 and 100-43)
2    Sec. 20-10. Competitive sealed bidding; reverse auction.
3    (a) Conditions for use. All contracts shall be awarded by
4competitive sealed bidding except as otherwise provided in
5Section 20-5.
6    (b) Invitation for bids. An invitation for bids shall be
7issued and shall include a purchase description and the
8material contractual terms and conditions applicable to the
9procurement.
10    (c) Public notice. Public notice of the invitation for bids
11shall be published in the Illinois Procurement Bulletin at
12least 14 calendar days before the date set in the invitation
13for the opening of bids.
14    (d) Bid opening. Bids shall be opened publicly or through
15an electronic procurement system in the presence of one or more
16witnesses at the time and place designated in the invitation
17for bids. The name of each bidder, including earned and applied
18bid credit from the Illinois Works Jobs Program Act, the amount
19of each bid, and other relevant information as may be specified
20by rule shall be recorded. After the award of the contract, the
21winning bid and the record of each unsuccessful bid shall be
22open to public inspection.
23    (e) Bid acceptance and bid evaluation. Bids shall be
24unconditionally accepted without alteration or correction,
25except as authorized in this Code. Bids shall be evaluated
26based on the requirements set forth in the invitation for bids,

 

 

10100SB0690ham003- 210 -LRB101 04451 SMS 61572 a

1which may include criteria to determine acceptability such as
2inspection, testing, quality, workmanship, delivery, and
3suitability for a particular purpose. Those criteria that will
4affect the bid price and be considered in evaluation for award,
5such as discounts, transportation costs, and total or life
6cycle costs, shall be objectively measurable. The invitation
7for bids shall set forth the evaluation criteria to be used.
8    (f) Correction or withdrawal of bids. Correction or
9withdrawal of inadvertently erroneous bids before or after
10award, or cancellation of awards of contracts based on bid
11mistakes, shall be permitted in accordance with rules. After
12bid opening, no changes in bid prices or other provisions of
13bids prejudicial to the interest of the State or fair
14competition shall be permitted. All decisions to permit the
15correction or withdrawal of bids based on bid mistakes shall be
16supported by written determination made by a State purchasing
17officer.
18    (g) Award. The contract shall be awarded with reasonable
19promptness by written notice to the lowest responsible and
20responsive bidder whose bid meets the requirements and criteria
21set forth in the invitation for bids, except when a State
22purchasing officer determines it is not in the best interest of
23the State and by written explanation determines another bidder
24shall receive the award. The explanation shall appear in the
25appropriate volume of the Illinois Procurement Bulletin. The
26written explanation must include:

 

 

10100SB0690ham003- 211 -LRB101 04451 SMS 61572 a

1        (1) a description of the agency's needs;
2        (2) a determination that the anticipated cost will be
3    fair and reasonable;
4        (3) a listing of all responsible and responsive
5    bidders; and
6        (4) the name of the bidder selected, the total contract
7    price, and the reasons for selecting that bidder.
8    Each chief procurement officer may adopt guidelines to
9implement the requirements of this subsection (g).
10    The written explanation shall be filed with the Legislative
11Audit Commission and the Procurement Policy Board, and be made
12available for inspection by the public, within 30 calendar days
13after the agency's decision to award the contract.
14    (h) Multi-step sealed bidding. When it is considered
15impracticable to initially prepare a purchase description to
16support an award based on price, an invitation for bids may be
17issued requesting the submission of unpriced offers to be
18followed by an invitation for bids limited to those bidders
19whose offers have been qualified under the criteria set forth
20in the first solicitation.
21    (i) Alternative procedures. Notwithstanding any other
22provision of this Act to the contrary, the Director of the
23Illinois Power Agency may create alternative bidding
24procedures to be used in procuring professional services under
25Section 1-56, subsections (a) and (c) of Section 1-75 and
26subsection (d) of Section 1-78 of the Illinois Power Agency Act

 

 

10100SB0690ham003- 212 -LRB101 04451 SMS 61572 a

1and Section 16-111.5(c) of the Public Utilities Act and to
2procure renewable energy resources under Section 1-56 of the
3Illinois Power Agency Act. These alternative procedures shall
4be set forth together with the other criteria contained in the
5invitation for bids, and shall appear in the appropriate volume
6of the Illinois Procurement Bulletin.
7    (j) Reverse auction. Notwithstanding any other provision
8of this Section and in accordance with rules adopted by the
9chief procurement officer, that chief procurement officer may
10procure supplies or services through a competitive electronic
11auction bidding process after the chief procurement officer
12determines that the use of such a process will be in the best
13interest of the State. The chief procurement officer shall
14publish that determination in his or her next volume of the
15Illinois Procurement Bulletin.
16    An invitation for bids shall be issued and shall include
17(i) a procurement description, (ii) all contractual terms,
18whenever practical, and (iii) conditions applicable to the
19procurement, including a notice that bids will be received in
20an electronic auction manner.
21    Public notice of the invitation for bids shall be given in
22the same manner as provided in subsection (c).
23    Bids shall be accepted electronically at the time and in
24the manner designated in the invitation for bids. During the
25auction, a bidder's price shall be disclosed to other bidders.
26Bidders shall have the opportunity to reduce their bid prices

 

 

10100SB0690ham003- 213 -LRB101 04451 SMS 61572 a

1during the auction. At the conclusion of the auction, the
2record of the bid prices received and the name of each bidder
3shall be open to public inspection.
4    After the auction period has terminated, withdrawal of bids
5shall be permitted as provided in subsection (f).
6    The contract shall be awarded within 60 calendar days after
7the auction by written notice to the lowest responsible bidder,
8or all bids shall be rejected except as otherwise provided in
9this Code. Extensions of the date for the award may be made by
10mutual written consent of the State purchasing officer and the
11lowest responsible bidder.
12    This subsection does not apply to (i) procurements of
13professional and artistic services, (ii) telecommunications
14services, communication services, and information services,
15and (iii) contracts for construction projects, including
16design professional services.
17(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
 
18    (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
1998-1076, 99-906, and 100-43)
20    Sec. 20-10. Competitive sealed bidding; reverse auction.
21    (a) Conditions for use. All contracts shall be awarded by
22competitive sealed bidding except as otherwise provided in
23Section 20-5.
24    (b) Invitation for bids. An invitation for bids shall be
25issued and shall include a purchase description and the

 

 

10100SB0690ham003- 214 -LRB101 04451 SMS 61572 a

1material contractual terms and conditions applicable to the
2procurement.
3    (c) Public notice. Public notice of the invitation for bids
4shall be published in the Illinois Procurement Bulletin at
5least 14 calendar days before the date set in the invitation
6for the opening of bids.
7    (d) Bid opening. Bids shall be opened publicly or through
8an electronic procurement system in the presence of one or more
9witnesses at the time and place designated in the invitation
10for bids. The name of each bidder, including earned and applied
11bid credit from the Illinois Works Jobs Program Act, the amount
12of each bid, and other relevant information as may be specified
13by rule shall be recorded. After the award of the contract, the
14winning bid and the record of each unsuccessful bid shall be
15open to public inspection.
16    (e) Bid acceptance and bid evaluation. Bids shall be
17unconditionally accepted without alteration or correction,
18except as authorized in this Code. Bids shall be evaluated
19based on the requirements set forth in the invitation for bids,
20which may include criteria to determine acceptability such as
21inspection, testing, quality, workmanship, delivery, and
22suitability for a particular purpose. Those criteria that will
23affect the bid price and be considered in evaluation for award,
24such as discounts, transportation costs, and total or life
25cycle costs, shall be objectively measurable. The invitation
26for bids shall set forth the evaluation criteria to be used.

 

 

10100SB0690ham003- 215 -LRB101 04451 SMS 61572 a

1    (f) Correction or withdrawal of bids. Correction or
2withdrawal of inadvertently erroneous bids before or after
3award, or cancellation of awards of contracts based on bid
4mistakes, shall be permitted in accordance with rules. After
5bid opening, no changes in bid prices or other provisions of
6bids prejudicial to the interest of the State or fair
7competition shall be permitted. All decisions to permit the
8correction or withdrawal of bids based on bid mistakes shall be
9supported by written determination made by a State purchasing
10officer.
11    (g) Award. The contract shall be awarded with reasonable
12promptness by written notice to the lowest responsible and
13responsive bidder whose bid meets the requirements and criteria
14set forth in the invitation for bids, except when a State
15purchasing officer determines it is not in the best interest of
16the State and by written explanation determines another bidder
17shall receive the award. The explanation shall appear in the
18appropriate volume of the Illinois Procurement Bulletin. The
19written explanation must include:
20        (1) a description of the agency's needs;
21        (2) a determination that the anticipated cost will be
22    fair and reasonable;
23        (3) a listing of all responsible and responsive
24    bidders; and
25        (4) the name of the bidder selected, the total contract
26    price, and the reasons for selecting that bidder.

 

 

10100SB0690ham003- 216 -LRB101 04451 SMS 61572 a

1    Each chief procurement officer may adopt guidelines to
2implement the requirements of this subsection (g).
3    The written explanation shall be filed with the Legislative
4Audit Commission and the Procurement Policy Board, and be made
5available for inspection by the public, within 30 days after
6the agency's decision to award the contract.
7    (h) Multi-step sealed bidding. When it is considered
8impracticable to initially prepare a purchase description to
9support an award based on price, an invitation for bids may be
10issued requesting the submission of unpriced offers to be
11followed by an invitation for bids limited to those bidders
12whose offers have been qualified under the criteria set forth
13in the first solicitation.
14    (i) Alternative procedures. Notwithstanding any other
15provision of this Act to the contrary, the Director of the
16Illinois Power Agency may create alternative bidding
17procedures to be used in procuring professional services under
18subsections (a) and (c) of Section 1-75 and subsection (d) of
19Section 1-78 of the Illinois Power Agency Act and Section
2016-111.5(c) of the Public Utilities Act and to procure
21renewable energy resources under Section 1-56 of the Illinois
22Power Agency Act. These alternative procedures shall be set
23forth together with the other criteria contained in the
24invitation for bids, and shall appear in the appropriate volume
25of the Illinois Procurement Bulletin.
26    (j) Reverse auction. Notwithstanding any other provision

 

 

10100SB0690ham003- 217 -LRB101 04451 SMS 61572 a

1of this Section and in accordance with rules adopted by the
2chief procurement officer, that chief procurement officer may
3procure supplies or services through a competitive electronic
4auction bidding process after the chief procurement officer
5determines that the use of such a process will be in the best
6interest of the State. The chief procurement officer shall
7publish that determination in his or her next volume of the
8Illinois Procurement Bulletin.
9    An invitation for bids shall be issued and shall include
10(i) a procurement description, (ii) all contractual terms,
11whenever practical, and (iii) conditions applicable to the
12procurement, including a notice that bids will be received in
13an electronic auction manner.
14    Public notice of the invitation for bids shall be given in
15the same manner as provided in subsection (c).
16    Bids shall be accepted electronically at the time and in
17the manner designated in the invitation for bids. During the
18auction, a bidder's price shall be disclosed to other bidders.
19Bidders shall have the opportunity to reduce their bid prices
20during the auction. At the conclusion of the auction, the
21record of the bid prices received and the name of each bidder
22shall be open to public inspection.
23    After the auction period has terminated, withdrawal of bids
24shall be permitted as provided in subsection (f).
25    The contract shall be awarded within 60 calendar days after
26the auction by written notice to the lowest responsible bidder,

 

 

10100SB0690ham003- 218 -LRB101 04451 SMS 61572 a

1or all bids shall be rejected except as otherwise provided in
2this Code. Extensions of the date for the award may be made by
3mutual written consent of the State purchasing officer and the
4lowest responsible bidder.
5    This subsection does not apply to (i) procurements of
6professional and artistic services, (ii) telecommunications
7services, communication services, and information services,
8and (iii) contracts for construction projects, including
9design professional services.
10(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
 
11    Section 20-910. The Prevailing Wage Act is amended by
12changing Section 5 as follows:
 
13    (820 ILCS 130/5)  (from Ch. 48, par. 39s-5)
14    (Text of Section before amendment by P.A. 100-1177)
15    Sec. 5. Certified payroll.
16    (a) Any contractor and each subcontractor who participates
17in public works shall:
18        (1) make and keep, for a period of not less than 3
19    years from the date of the last payment made before January
20    1, 2014 (the effective date of Public Act 98-328) and for a
21    period of 5 years from the date of the last payment made on
22    or after January 1, 2014 (the effective date of Public Act
23    98-328) on a contract or subcontract for public works,
24    records of all laborers, mechanics, and other workers

 

 

10100SB0690ham003- 219 -LRB101 04451 SMS 61572 a

1    employed by them on the project; the records shall include
2    (i) the worker's name, (ii) the worker's address, (iii) the
3    worker's telephone number when available, (iv) the
4    worker's social security number, (v) the worker's
5    classification or classifications, (vi) the worker's skill
6    level, such as apprentice or journeyman, (vii) (vi) the
7    worker's gross and net wages paid in each pay period,
8    (viii) (vii) the worker's number of hours worked each day,
9    (ix) (viii) the worker's starting and ending times of work
10    each day, (x) (ix) the worker's hourly wage rate, (xi) (x)
11    the worker's hourly overtime wage rate, (xii) (xi) the
12    worker's hourly fringe benefit rates, (xiii) (xii) the name
13    and address of each fringe benefit fund, (xiv) (xiii) the
14    plan sponsor of each fringe benefit, if applicable, and
15    (xv) (xiv) the plan administrator of each fringe benefit,
16    if applicable; and
17        (2) no later than the 15th day of each calendar month
18    file a certified payroll for the immediately preceding
19    month with the public body in charge of the project. A
20    certified payroll must be filed for only those calendar
21    months during which construction on a public works project
22    has occurred. The certified payroll shall consist of a
23    complete copy of the records identified in paragraph (1) of
24    this subsection (a), but may exclude the starting and
25    ending times of work each day. The certified payroll shall
26    be accompanied by a statement signed by the contractor or

 

 

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1    subcontractor or an officer, employee, or agent of the
2    contractor or subcontractor which avers that: (i) he or she
3    has examined the certified payroll records required to be
4    submitted by the Act and such records are true and
5    accurate; (ii) the hourly rate paid to each worker is not
6    less than the general prevailing rate of hourly wages
7    required by this Act; and (iii) the contractor or
8    subcontractor is aware that filing a certified payroll that
9    he or she knows to be false is a Class A misdemeanor. A
10    general contractor is not prohibited from relying on the
11    certification of a lower tier subcontractor, provided the
12    general contractor does not knowingly rely upon a
13    subcontractor's false certification. Any contractor or
14    subcontractor subject to this Act and any officer,
15    employee, or agent of such contractor or subcontractor
16    whose duty as such officer, employee, or agent it is to
17    file such certified payroll who willfully fails to file
18    such a certified payroll on or before the date such
19    certified payroll is required by this paragraph to be filed
20    and any person who willfully files a false certified
21    payroll that is false as to any material fact is in
22    violation of this Act and guilty of a Class A misdemeanor.
23    The public body in charge of the project shall keep the
24    records submitted in accordance with this paragraph (2) of
25    subsection (a) before January 1, 2014 (the effective date
26    of Public Act 98-328) for a period of not less than 3

 

 

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1    years, and the records submitted in accordance with this
2    paragraph (2) of subsection (a) on or after January 1, 2014
3    (the effective date of Public Act 98-328) for a period of 5
4    years, from the date of the last payment for work on a
5    contract or subcontract for public works. The records
6    submitted in accordance with this paragraph (2) of
7    subsection (a) shall be considered public records, except
8    an employee's address, telephone number, and social
9    security number, and made available in accordance with the
10    Freedom of Information Act. The public body shall accept
11    any reasonable submissions by the contractor that meet the
12    requirements of this Section.
13    A contractor, subcontractor, or public body may retain
14records required under this Section in paper or electronic
15format.
16    (b) Upon 7 business days' notice, the contractor and each
17subcontractor shall make available for inspection and copying
18at a location within this State during reasonable hours, the
19records identified in paragraph (1) of subsection (a) of this
20Section to the public body in charge of the project, its
21officers and agents, the Director of Labor and his deputies and
22agents, and to federal, State, or local law enforcement
23agencies and prosecutors.
24    (c) A contractor or subcontractor who remits contributions
25to fringe benefit funds that are jointly maintained and jointly
26governed by one or more employers and one or more labor

 

 

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1organizations in accordance with the federal Labor Management
2Relations Act shall make and keep certified payroll records
3that include the information required under items (i) through
4(ix) (viii) of paragraph (1) of subsection (a) only. However,
5the information required under items (x) (ix) through (xv)
6(xiv) of paragraph (1) of subsection (a) shall be required for
7any contractor or subcontractor who remits contributions to a
8fringe benefit fund that is not jointly maintained and jointly
9governed by one or more employers and one or more labor
10organizations in accordance with the federal Labor Management
11Relations Act.
12(Source: P.A. 97-571, eff. 1-1-12; 98-328, eff. 1-1-14; 98-482,
13eff. 1-1-14; 98-756, eff. 7-16-14.)
 
14    (Text of Section after amendment by P.A. 100-1177)
15    Sec. 5. Certified payroll.
16    (a) Any contractor and each subcontractor who participates
17in public works shall:
18        (1) make and keep, for a period of not less than 3
19    years from the date of the last payment made before January
20    1, 2014 (the effective date of Public Act 98-328) and for a
21    period of 5 years from the date of the last payment made on
22    or after January 1, 2014 (the effective date of Public Act
23    98-328) on a contract or subcontract for public works,
24    records of all laborers, mechanics, and other workers
25    employed by them on the project; the records shall include

 

 

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1    (i) the worker's name, (ii) the worker's address, (iii) the
2    worker's telephone number when available, (iv) the last 4
3    digits of the worker's social security number, (v) the
4    worker's gender, (vi) the worker's race, (vii) the worker's
5    ethnicity, (viii) veteran status, (ix) the worker's
6    classification or classifications, (x) the worker's skill
7    level, such as apprentice or journeyman, (xi) (x) the
8    worker's gross and net wages paid in each pay period, (xii)
9    (xi) the worker's number of hours worked each day, (xiii)
10    (xii) the worker's starting and ending times of work each
11    day, (xiv) (xiii) the worker's hourly wage rate, (xv) (xiv)
12    the worker's hourly overtime wage rate, (xvi) (xv) the
13    worker's hourly fringe benefit rates, (xvii) (xvi) the name
14    and address of each fringe benefit fund, (xviii) (xvii) the
15    plan sponsor of each fringe benefit, if applicable, and
16    (xix) (xviii) the plan administrator of each fringe
17    benefit, if applicable; and
18        (2) no later than the 15th day of each calendar month
19    file a certified payroll for the immediately preceding
20    month with the public body in charge of the project until
21    the Department of Labor activates the database created
22    under Section 5.1 at which time certified payroll shall
23    only be submitted to that database, except for projects
24    done by State agencies that opt to have contractors submit
25    certified payrolls directly to that State agency. A State
26    agency that opts to directly receive certified payrolls

 

 

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1    must submit the required information in a specified
2    electronic format to the Department of Labor no later than
3    10 days after the certified payroll was filed with the
4    State agency. A certified payroll must be filed for only
5    those calendar months during which construction on a public
6    works project has occurred. The certified payroll shall
7    consist of a complete copy of the records identified in
8    paragraph (1) of this subsection (a), but may exclude the
9    starting and ending times of work each day. The certified
10    payroll shall be accompanied by a statement signed by the
11    contractor or subcontractor or an officer, employee, or
12    agent of the contractor or subcontractor which avers that:
13    (i) he or she has examined the certified payroll records
14    required to be submitted by the Act and such records are
15    true and accurate; (ii) the hourly rate paid to each worker
16    is not less than the general prevailing rate of hourly
17    wages required by this Act; and (iii) the contractor or
18    subcontractor is aware that filing a certified payroll that
19    he or she knows to be false is a Class A misdemeanor. A
20    general contractor is not prohibited from relying on the
21    certification of a lower tier subcontractor, provided the
22    general contractor does not knowingly rely upon a
23    subcontractor's false certification. Any contractor or
24    subcontractor subject to this Act and any officer,
25    employee, or agent of such contractor or subcontractor
26    whose duty as such officer, employee, or agent it is to

 

 

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1    file such certified payroll who willfully fails to file
2    such a certified payroll on or before the date such
3    certified payroll is required by this paragraph to be filed
4    and any person who willfully files a false certified
5    payroll that is false as to any material fact is in
6    violation of this Act and guilty of a Class A misdemeanor.
7    The public body in charge of the project shall keep the
8    records submitted in accordance with this paragraph (2) of
9    subsection (a) before January 1, 2014 (the effective date
10    of Public Act 98-328) for a period of not less than 3
11    years, and the records submitted in accordance with this
12    paragraph (2) of subsection (a) on or after January 1, 2014
13    (the effective date of Public Act 98-328) for a period of 5
14    years, from the date of the last payment for work on a
15    contract or subcontract for public works or until the
16    Department of Labor activates the database created under
17    Section 5.1, whichever is less. After the activation of the
18    database created under Section 5.1, the Department of Labor
19    rather than the public body in charge of the project shall
20    keep the records and maintain the database. The records
21    submitted in accordance with this paragraph (2) of
22    subsection (a) shall be considered public records, except
23    an employee's address, telephone number, social security
24    number, race, ethnicity, and gender, and made available in
25    accordance with the Freedom of Information Act. The public
26    body shall accept any reasonable submissions by the

 

 

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1    contractor that meet the requirements of this Section.
2    A contractor, subcontractor, or public body may retain
3records required under this Section in paper or electronic
4format.
5    (b) Upon 7 business days' notice, the contractor and each
6subcontractor shall make available for inspection and copying
7at a location within this State during reasonable hours, the
8records identified in paragraph (1) of subsection (a) of this
9Section to the public body in charge of the project, its
10officers and agents, the Director of Labor and his deputies and
11agents, and to federal, State, or local law enforcement
12agencies and prosecutors.
13    (c) A contractor or subcontractor who remits contributions
14to fringe benefit funds that are jointly maintained and jointly
15governed by one or more employers and one or more labor
16organizations in accordance with the federal Labor Management
17Relations Act shall make and keep certified payroll records
18that include the information required under items (i) through
19(viii) of paragraph (1) of subsection (a) only. However, the
20information required under items (ix) through (xv) (xiv) of
21paragraph (1) of subsection (a) shall be required for any
22contractor or subcontractor who remits contributions to a
23fringe benefit fund that is not jointly maintained and jointly
24governed by one or more employers and one or more labor
25organizations in accordance with the federal Labor Management
26Relations Act.

 

 

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1(Source: P.A. 100-1177, eff. 6-1-19.)
 
2
Article 25. Sports Wagering Act

 
3    Section 25-1. Short title. This Article may be cited as the
4Sports Wagering Act. References in this Article to "this Act"
5mean this Article.
 
6    Section 25-5. Legislative findings. The General Assembly
7recognizes the promotion of public safety is an important
8consideration for sports leagues, teams, players, and fans at
9large. All persons who present sporting contests are encouraged
10to take reasonable measures to ensure the safety and security
11of all involved or attending sporting contests. Persons who
12present sporting contests are encouraged to establish codes of
13conduct that forbid all persons associated with the sporting
14contest from engaging in violent behavior and to hire, train,
15and equip safety and security personnel to enforce those codes
16of conduct. Persons who present sporting contests are further
17encouraged to provide public notice of those codes of conduct.
 
18    Section 25-10. Definitions. As used in this Act:
19    "Adjusted gross sports wagering receipts" means a master
20sports wagering licensee's gross sports wagering receipts,
21less winnings paid to wagerers in such games.
22    "Athlete" means any current or former professional athlete

 

 

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1or collegiate athlete.
2    "Board" means the Illinois Gaming Board.
3    "Covered persons" includes athletes; umpires, referees,
4and officials; personnel associated with clubs, teams,
5leagues, and athletic associations; medical professionals
6(including athletic trainers) who provide services to athletes
7and players; and the family members and associates of these
8persons where required to serve the purposes of this Act.
9    "Department" means the Department of the Lottery.
10    "Gaming facility" means a facility at which gambling
11operations are conducted under the Illinois Gambling Act,
12pari-mutuel wagering is conducted under the Illinois Horse
13Racing Act of 1975, or sports wagering is conducted under this
14Act.
15    "Official league data" means statistics, results,
16outcomes, and other data related to a sports event obtained
17pursuant to an agreement with the relevant sports governing
18body, or an entity expressly authorized by the sports governing
19body to provide such information to licensees, that authorizes
20the use of such data for determining the outcome of tier 2
21sports wagers on such sports events.
22    "Organization licensee" has the meaning given to that term
23in the Illinois Horse Racing Act of 1975.
24    "Owners licensee" means the holder of an owners license
25under the Illinois Gambling Act.
26    "Person" means an individual, partnership, committee,

 

 

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1association, corporation, or any other organization or group of
2persons.
3    "Personal biometric data" means an athlete's information
4derived from DNA, heart rate, blood pressure, perspiration
5rate, internal or external body temperature, hormone levels,
6glucose levels, hydration levels, vitamin levels, bone
7density, muscle density, and sleep patterns.
8    "Prohibited conduct" includes any statement, action, and
9other communication intended to influence, manipulate, or
10control a betting outcome of a sporting contest or of any
11individual occurrence or performance in a sporting contest in
12exchange for financial gain or to avoid financial or physical
13harm. "Prohibited conduct" includes statements, actions, and
14communications made to a covered person by a third party, such
15as a family member or through social media. "Prohibited
16conduct" does not include statements, actions, or
17communications made or sanctioned by a team or sports governing
18body.
19    "Qualified applicant" means an applicant for a license
20under this Act whose application meets the mandatory minimum
21qualification criteria as required by the Board.
22    "Sporting contest" means a sports event or game on which
23the State allows sports wagering to occur under this Act.
24    "Sports event" means a professional sport or athletic
25event, a collegiate sport or athletic event, a motor race
26event, or any other event or competition of relative skill

 

 

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1authorized by the Board under this Act.
2    "Sports facility" means a facility that hosts sports events
3and holds a seating capacity greater than 17,000 persons.
4    "Sports governing body" means the organization that
5prescribes final rules and enforces codes of conduct with
6respect to a sports event and participants therein.
7    "Sports wagering" means accepting wagers on sports events
8or portions of sports events, or on the individual performance
9statistics of athletes in a sports event or combination of
10sports events, by any system or method of wagering, including,
11but not limited to, in person or over the Internet through
12websites and on mobile devices. "Sports wagering" includes, but
13is not limited to, single-game bets, teaser bets, parlays,
14over-under, moneyline, pools, exchange wagering, in-game
15wagering, in-play bets, proposition bets, and straight bets.
16    "Sports wagering account" means a financial record
17established by a master sports wagering licensee for an
18individual patron in which the patron may deposit and withdraw
19funds for sports wagering and other authorized purchases and to
20which the master sports wagering licensee may credit winnings
21or other amounts due to that patron or authorized by that
22patron.
23    "Tier 1 sports wager" means a sports wager that is
24determined solely by the final score or final outcome of the
25sports event and is placed before the sports event has begun.
26    "Tier 2 sports wager" means a sports wager that is not a

 

 

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1tier 1 sports wager.
2    "Wager" means a sum of money or thing of value risked on an
3uncertain occurrence.
4    "Winning bidder" means a qualified applicant for a master
5sports wagering license chosen through the competitive
6selection process under Section 25-45.
 
7    Section 25-15. Board duties and powers.
8    (a) Except for sports wagering conducted under Section
925-70, the Board shall have the authority to regulate the
10conduct of sports wagering under this Act.
11    (b) The Board may adopt any rules the Board considers
12necessary for the successful implementation, administration,
13and enforcement of this Act, except for Section 25-70. Rules
14proposed by the Board may be adopted as emergency rules
15pursuant to Section 5-45 of the Illinois Administrative
16Procedure Act.
17    (c) The Board shall levy and collect all fees, surcharges,
18civil penalties, and monthly taxes on adjusted gross sports
19wagering receipts imposed by this Act and deposit all moneys
20into the Sports Wagering Fund, except as otherwise provided
21under this Act.
22    (d) The Board may exercise any other powers necessary to
23enforce the provisions of this Act that it regulates and the
24rules of the Board.
25    (e) The Board shall adopt rules for a license to be

 

 

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1employed by a master sports wagering licensee when the employee
2works in a designated gaming area that has sports wagering or
3performs duties in furtherance of or associated with the
4operation of sports wagering by the master sports wagering
5licensee (occupational license), which shall require an annual
6license fee of $250. License fees shall be deposited into the
7State Gaming Fund and used for the administration of this Act.
8    (f) The Board may require that licensees share, in real
9time and at the sports wagering account level, information
10regarding a wagerer, amount and type of wager, the time the
11wager was placed, the location of the wager, including the
12Internet protocol address, if applicable, the outcome of the
13wager, and records of abnormal wagering activity. Information
14shared under this subsection (f) must be submitted in the form
15and manner as required by rule. If a sports governing body has
16notified the Board that real-time information sharing for
17wagers placed on its sports events is necessary and desirable,
18licensees may share the same information in the form and manner
19required by the Board by rule with the sports governing body or
20its designee with respect to wagers on its sports events
21subject to applicable federal, State, or local laws or
22regulations, including, without limitation, privacy laws and
23regulations. Such information may be provided in anonymized
24form and may be used by a sports governing body solely for
25integrity purposes. For purposes of this subsection (f),
26"real-time" means a commercially reasonable periodic interval.

 

 

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1    (g) A master sports wagering licensee, professional sports
2team, league, or association, sports governing body, or
3institution of higher education may submit to the Board in
4writing a request to prohibit a type or form of wagering if the
5master sports wagering licensee, professional sports team,
6league, or association, sports governing body, or institution
7of higher education believes that such wagering by type or form
8is contrary to public policy, unfair to consumers, or affects
9the integrity of a particular sport or the sports betting
10industry. The Board shall grant the request upon a
11demonstration of good cause from the requester and consultation
12with licensees. The Board shall respond to a request pursuant
13to this subsection (g) concerning a particular event before the
14start of the event or, if it is not feasible to respond before
15the start of the event, as soon as practicable.
16    (h) The Board and master sports wagering licensees may
17cooperate with investigations conducted by sports governing
18bodies or law enforcement agencies, including, but not limited
19to, providing and facilitating the provision of account-level
20betting information and audio or video files relating to
21persons placing wagers.
22    (i) A master sports wagering licensee shall make
23commercially reasonable efforts to promptly notify the Board
24any information relating to:
25        (1) criminal or disciplinary proceedings commenced
26    against the master sports wagering licensee in connection

 

 

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1    with its operations;
2        (2) abnormal wagering activity or patterns that may
3    indicate a concern with the integrity of a sports event or
4    sports events;
5        (3) any potential breach of the relevant sports
6    governing body's internal rules and codes of conduct
7    pertaining to sports wagering that a licensee has knowledge
8    of;
9        (4) any other conduct that corrupts a wagering outcome
10    of a sports event or sports events for purposes of
11    financial gain, including match fixing; and
12        (5) suspicious or illegal wagering activities,
13    including use of funds derived from illegal activity,
14    wagers to conceal or launder funds derived from illegal
15    activity, using agents to place wagers, and using false
16    identification.
17    A master sports wagering licensee shall also make
18commercially reasonable efforts to promptly report information
19relating to conduct described in paragraphs (2), (3), and (4)
20of this subsection (i) to the relevant sports governing body.
 
21    Section 25-20. Licenses required.
22    (a) No person may engage in any activity in connection with
23sports wagering in this State unless all necessary licenses
24have been obtained in accordance with this Act and the rules of
25the Board and the Department. The following licenses shall be

 

 

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1issued under this Act:
2        (1) master sports wagering license;
3        (2) occupational license;
4        (3) supplier license;
5        (4) management services provider license
6        (5) tier 2 official league data provider license; and
7        (6) central system provider license.
8    No person or entity may engage in a sports wagering
9operation or activity without first obtaining the appropriate
10license.
11    (b) An applicant for a license issued under this Act shall
12submit an application to the Board in the form the Board
13requires. The applicant shall submit fingerprints for a
14national criminal records check by the Department of State
15Police and the Federal Bureau of Investigation. The
16fingerprints shall be furnished by the applicant's officers and
17directors (if a corporation), members (if a limited liability
18company), and partners (if a partnership). The fingerprints
19shall be accompanied by a signed authorization for the release
20of information by the Federal Bureau of Investigation. The
21Board may require additional background checks on licensees
22when they apply for license renewal, and an applicant convicted
23of a disqualifying offense shall not be licensed.
24    (c) Each master sports wagering licensee shall display the
25license conspicuously in the licensee's place of business or
26have the license available for inspection by an agent of the

 

 

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1Board or a law enforcement agency.
2    (d) Each holder of an occupational license shall carry the
3license and have some indicia of licensure prominently
4displayed on his or her person when present in a gaming
5facility licensed under this Act at all times, in accordance
6with the rules of the Board.
7    (e) Each person licensed under this Act shall give the
8Board written notice within 30 days after a material change to
9information provided in the licensee's application for a
10license or renewal.
 
11    Section 25-25. Sports wagering authorized.
12    (a) Notwithstanding any provision of law to the contrary,
13the operation of sports wagering is only lawful when conducted
14in accordance with the provisions of this Act and the rules of
15the Illinois Gaming Board and the Department of the Lottery.
16    (b) A person placing a wager under this Act shall be at
17least 21 years of age.
18    (c) A licensee under this Act may not accept a wager on a
19minor league sports event.
20    (d) A licensee under this Act may not accept a wager for a
21sports event involving an Illinois collegiate team.
22    (e) A licensee under this Act may only accept a wager from
23a person physically located in the State.
24    (f) Master sports wagering licensees may use any data
25source for determining the results of all tier 1 sports wagers.

 

 

10100SB0690ham003- 237 -LRB101 04451 SMS 61572 a

1    (g) A sports governing body headquartered in the United
2States may notify the Board that it desires to supply official
3league data to master sports wagering licensees for determining
4the results of tier 2 sports wagers. Such notification shall be
5made in the form and manner as the Board may require. If a
6sports governing body does not notify the Board of its desire
7to supply official league data, a master sports wagering
8licensee may use any data source for determining the results of
9any and all tier 2 sports wagers on sports contests for that
10sports governing body.
11    Within 30 days of a sports governing body notifying the
12Board, master sports wagering licensees shall use only official
13league data to determine the results of tier 2 sports wagers on
14sports events sanctioned by that sports governing body, unless:
15(1) the sports governing body or designee cannot provide a feed
16of official league data to determine the results of a
17particular type of tier 2 sports wager, in which case master
18sports wagering licensees may use any data source for
19determining the results of the applicable tier 2 sports wager
20until such time as such data feed becomes available on
21commercially reasonable terms; or (2) a master sports wagering
22licensee can demonstrate to the Board that the sports governing
23body or its designee cannot provide a feed of official league
24data to the master sports wagering licensee on commercially
25reasonable terms. During the pendency of the Board's
26determination, such master sports wagering licensee may use any

 

 

10100SB0690ham003- 238 -LRB101 04451 SMS 61572 a

1data source for determining the results of any and all tier 2
2sports wagers.
3    (h) A licensee under this Act may not accept wagers on a
4kindergarten through 12th grade sports event.
 
5    Section 25-30. Master sports wagering license issued to an
6organization licensee.
7    (a) An organization licensee may apply to the Board for a
8master sports wagering license. To the extent permitted by
9federal and State law, the Board shall actively seek to achieve
10racial, ethnic, and geographic diversity when issuing master
11sports wagering licenses to organization licensees and
12encourage minority-owned businesses, women-owned businesses,
13veteran-owned businesses, and businesses owned by persons with
14disabilities to apply for licensure. Additionally, the report
15published under subsection (m) of Section 25-45 shall impact
16the issuance of the master sports wagering license to the
17extent permitted by federal and State law.
18    For the purposes of this subsection (a), "minority-owned
19business", "women-owned business", and "business owned by
20persons with disabilities" have the meanings given to those
21terms in Section 2 of the Business Enterprise for Minorities,
22Women, and Persons with Disabilities Act.
23    (b) Except as otherwise provided in this subsection (b),
24the initial license fee for a master sports wagering license
25for an organization licensee is 5% of its handle from the

 

 

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1preceding calendar year or the lowest amount that is required
2to be paid as an initial license fee by an owners licensee
3under subsection (b) of Section 25-35, whichever is greater. No
4initial license fee shall exceed $10,000,000. An organization
5licensee licensed on the effective date of this Act shall pay
6the initial master sports wagering license fee by July 1, 2020.
7For an organization licensee licensed after the effective date
8of this Act, the master sports wagering license fee shall be
9$5,000,000, but the amount shall be adjusted 12 months after
10the organization licensee begins racing operations based on 5%
11of its handle from the first 12 months of racing operations.
12The master sports wagering license is valid for 4 years.
13    (c) The organization licensee may renew the master sports
14wagering license for a period of 4 years by paying a $1,000,000
15renewal fee to the Board.
16    (d) An organization licensee issued a master sports
17wagering license may conduct sports wagering:
18        (1) at its facility at which inter-track wagering is
19    conducted pursuant to an inter-track wagering license
20    under the Illinois Horse Racing Act of 1975;
21        (2) at 3 inter-track wagering locations if the
22    inter-track wagering location licensee from which it
23    derives its license is an organization licensee that is
24    issued a master sports wagering license; and
25        (3) over the Internet or through a mobile application.
26    (e) The sports wagering offered over the Internet or

 

 

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1through a mobile application shall only be offered under either
2the same brand as the organization licensee is operating under
3or a brand owned by a direct or indirect holding company that
4owns at least an 80% interest in that organization licensee on
5the effective date of this Act.
6    (f) Until issuance of the first license under Section
725-45, an individual must create a sports wagering account in
8person at a facility under paragraph (1) or (2) of subsection
9(d) to participate in sports wagering offered over the Internet
10or through a mobile application.
 
11    Section 25-35. Master sports wagering license issued to an
12owners licensee.
13    (a) An owners licensee may apply to the Board for a master
14sports wagering license. To the extent permitted by federal and
15State law, the Board shall actively seek to achieve racial,
16ethnic, and geographic diversity when issuing master sports
17wagering licenses to owners licensees and encourage
18minority-owned businesses, women-owned businesses,
19veteran-owned businesses, and businesses owned by persons with
20disabilities to apply for licensure. Additionally, the report
21published under subsection (m) of Section 25-45 shall impact
22the issuance of the master sports wagering license to the
23extent permitted by federal and State law.
24    For the purposes of this subsection (a), "minority-owned
25business", "women-owned business", and "business owned by

 

 

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1persons with disabilities" have the meanings given to those
2terms in Section 2 of the Business Enterprise for Minorities,
3Women, and Persons with Disabilities Act.
4    (b) Except as otherwise provided in subsection (b-5), the
5initial license fee for a master sports wagering license for an
6owners licensee is 5% of its adjusted gross receipts from the
7preceding calendar year. No initial license fee shall exceed
8$10,000,000. An owners licensee licensed on the effective date
9of this Act shall pay the initial master sports wagering
10license fee by July 1, 2020. The master sports wagering license
11is valid for 4 years.
12    (b-5) For an owners licensee licensed after the effective
13date of this Act, the master sports wagering license fee shall
14be $5,000,000, but the amount shall be adjusted 12 months after
15the owners licensee begins gambling operations under the
16Illinois Gambling Act based on 5% of its adjusted gross
17receipts from the first 12 months of gambling operations. The
18master sports wagering license is valid for 4 years.
19    (c) The owners licensee may renew the master sports
20wagering license for a period of 4 years by paying a $1,000,000
21renewal fee to the Board.
22    (d) An owners licensee issued a master sports wagering
23license may conduct sports wagering:
24        (1) at its facility in this State that is authorized to
25    conduct gambling operations under the Illinois Gambling
26    Act; and

 

 

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1        (2) over the Internet or through a mobile application.
2    (e) The sports wagering offered over the Internet or
3through a mobile application shall only be offered under either
4the same brand as the owners licensee is operating under or a
5brand owned by a direct or indirect holding company that owns
6at least an 80% interest in that owners licensee on the
7effective date of this Act.
8    (f) Until issuance of the first license under Section
925-45, an individual must create a sports wagering account in
10person at a facility under paragraph (1) of subsection (d) to
11participate in sports wagering offered over the Internet or
12through a mobile application.
 
13    Section 25-40. Master sports wagering license issued to a
14sports facility.
15    (a) As used in this Section, "designee" means a master
16sports wagering licensee under Section 25-30, 25-35, or 25-45
17or a management services provider licensee.
18    (b) A sports facility or a designee contracted to operate
19sports wagering at or within a 5-block radius of the sports
20facility may apply to the Board for a master sports wagering
21license. To the extent permitted by federal and State law, the
22Board shall actively seek to achieve racial, ethnic, and
23geographic diversity when issuing master sports wagering
24licenses to sports facilities or their designees and encourage
25minority-owned businesses, women-owned businesses,

 

 

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1veteran-owned businesses, and businesses owned by persons with
2disabilities to apply for licensure. Additionally, the report
3published under subsection (m) of Section 25-45 shall impact
4the issuance of the master sports wagering license to the
5extent permitted by federal and State law.
6    For the purposes of this subsection (b), "minority-owned
7business", "women-owned business", and "business owned by
8persons with disabilities" have the meanings given to those
9terms in Section 2 of the Business Enterprise for Minorities,
10Women, and Persons with Disabilities Act.
11    (c) The Board may issue up to 7 master sports wagering
12licenses to sports facilities or their designees that meet the
13requirements for licensure as determined by rule by the Board.
14If more than 7 qualified applicants apply for a master sports
15wagering license under this Section, the licenses shall be
16granted in the order in which the applications were received.
17If a license is denied, revoked, or not renewed, the Board may
18begin a new application process and issue a license under this
19Section in the order in which the application was received.
20    (d) The initial license fee for a master sports wagering
21license for a sports facility is $10,000,000. The master sports
22wagering license is valid for 4 years.
23    (e) The sports facility or its designee may renew the
24master sports wagering license for a period of 4 years by
25paying a $1,000,000 renewal fee to the Board.
26    (f) A sports facility or its designee issued a master

 

 

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1sports wagering license may conduct sports wagering at or
2within a 5-block radius of the sports facility.
3    (g) A sports facility or its designee issued a master
4sports wagering license may conduct sports wagering over the
5Internet within the sports facility or within a 5-block radius
6of the sports facility.
7    (h) The sports wagering offered by a sports facility or its
8designee over the Internet or through a mobile application
9shall be offered under the same brand as the sports facility is
10operating under, the brand the designee is operating under, or
11a combination thereof.
12    (i) Until issuance of the first license under Section
1325-45, an individual must register in person at a sports
14facility or the designee's facility to participate in sports
15wagering offered over the Internet or through a mobile
16application.
 
17    Section 25-45. Master sports wagering license issued to an
18online sports wagering operator.
19    (a) The Board shall issue 3 master sports wagering licenses
20to online sports wagering operators for a nonrefundable license
21fee of $20,000,000 pursuant to an open and competitive
22selection process. The master sports wagering license issued
23under this Section may be renewed every 4 years upon payment of
24a $1,000,000 renewal fee. To the extent permitted by federal
25and State law, the Board shall actively seek to achieve racial,

 

 

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1ethnic, and geographic diversity when issuing master sports
2wagering licenses under this Section and encourage
3minority-owned businesses, women-owned businesses,
4veteran-owned businesses, and businesses owned by persons with
5disabilities to apply for licensure.
6    For the purposes of this subsection (a), "minority-owned
7business", "women-owned business", and "business owned by
8persons with disabilities" have the meanings given to those
9terms in Section 2 of the Business Enterprise for Minorities,
10Women, and Persons with Disabilities Act.
11    (b) Applications for the initial competitive selection
12occurring after the effective date of this Act shall be
13received by the Board within 540 days after the first license
14is issued under this Act to qualify. The Board shall announce
15the winning bidders for the initial competitive selection
16within 630 days after the first license is issued under this
17Act, and this time frame may be extended at the discretion of
18the Board.
19    (c) The Board shall provide public notice of its intent to
20solicit applications for master sports wagering licenses under
21this Section by posting the notice, application instructions,
22and materials on its website for at least 30 calendar days
23before the applications are due. Failure by an applicant to
24submit all required information may result in the application
25being disqualified. The Board may notify an applicant that its
26application is incomplete and provide an opportunity to cure by

 

 

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1rule. Application instructions shall include a brief overview
2of the selection process and how applications are scored.
3    (d) To be eligible for a master sports wagering license
4under this Section, an applicant must: (1) be at least 21 years
5of age; (2) not have been convicted of a felony offense or a
6violation of Article 28 of the Criminal Code of 1961 or the
7Criminal Code of 2012 or a similar statute of any other
8jurisdiction; (3) not have been convicted of a crime involving
9dishonesty or moral turpitude; (4) have demonstrated a level of
10skill or knowledge that the Board determines to be necessary in
11order to operate sports wagering; and (5) have met standards
12for the holding of a license as adopted by rules of the Board.
13    The Board may adopt rules to establish additional
14qualifications and requirements to preserve the integrity and
15security of sports wagering in this State and to promote and
16maintain a competitive sports wagering market. After the close
17of the application period, the Board shall determine whether
18the applications meet the mandatory minimum qualification
19criteria and conduct a comprehensive, fair, and impartial
20evaluation of all qualified applications.
21    (e) The Board shall open all qualified applications in a
22public forum and disclose the applicants' names. The Board
23shall summarize the terms of the proposals and make the
24summaries available to the public on its website.
25    (f) Not more than 90 days after the publication of the
26qualified applications, the Board shall identify the winning

 

 

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1bidders. In granting the licenses, the Board may give favorable
2consideration to qualified applicants presenting plans that
3provide for economic development and community engagement. To
4the extent permitted by federal and State law, the Board may
5give favorable consideration to qualified applicants
6demonstrating commitment to diversity in the workplace.
7    (g) Upon selection of the winning bidders, the Board shall
8have a reasonable period of time to ensure compliance with all
9applicable statutory and regulatory criteria before issuing
10the licenses. If the Board determines a winning bidder does not
11satisfy all applicable statutory and regulatory criteria, the
12Board shall select another bidder from the remaining qualified
13applicants.
14    (h) Nothing in this Section is intended to confer a
15property or other right, duty, privilege, or interest entitling
16an applicant to an administrative hearing upon denial of an
17application.
18    (i) Upon issuance of a master sports wagering license to a
19winning bidder, the information and plans provided in the
20application become a condition of the license. A master sports
21wagering licensee under this Section has a duty to disclose any
22material changes to the application. Failure to comply with the
23conditions or requirements in the application may subject the
24master sports wagering licensee under this Section to
25discipline, including, but not limited to, fines, suspension,
26and revocation of its license, pursuant to rules adopted by the

 

 

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1Board.
2    (j) The Board shall disseminate information about the
3licensing process through media demonstrated to reach large
4numbers of business owners and entrepreneurs who are
5minorities, women, veterans, and persons with disabilities.
6    (k) The Department of Commerce and Economic Opportunity, in
7conjunction with the Board, shall conduct ongoing, thorough,
8and comprehensive outreach to businesses owned by minorities,
9women, veterans, and persons with disabilities about
10contracting and entrepreneurial opportunities in sports
11wagering. This outreach shall include, but not be limited to:
12        (1) cooperating and collaborating with other State
13    boards, commissions, and agencies; public and private
14    universities and community colleges; and local governments
15    to target outreach efforts; and
16        (2) working with organizations serving minorities,
17    women, and persons with disabilities to establish and
18    conduct training for employment in sports wagering.
19    (l) The Board shall partner with the Department of Labor,
20the Department of Financial and Professional Regulation, and
21the Department of Commerce and Economic Opportunity to identify
22employment opportunities within the sports wagering industry
23for job seekers and dislocated workers.
24    (m) By March 1, 2020, the Board shall prepare a request for
25proposals to conduct a study of the online sports wagering
26industry and market to determine whether there is a compelling

 

 

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1interest in implementing remedial measures, including the
2application of the Business Enterprise Program under the
3Business Enterprise for Minorities, Women, and Persons with
4Disabilities Act or a similar program to assist minorities,
5women, and persons with disabilities in the sports wagering
6industry.
7    As a part of the study, the Board shall evaluate race and
8gender-neutral programs or other methods that may be used to
9address the needs of minority and women applicants and
10minority-owned and women-owned businesses seeking to
11participate in the sports wagering industry. The Board shall
12submit to the General Assembly and publish on its website the
13results of this study by August 1, 2020.
14    If, as a result of the study conducted under this
15subsection (m), the Board finds that there is a compelling
16interest in implementing remedial measures, the Board may adopt
17rules, including emergency rules, to implement remedial
18measures, if necessary and to the extent permitted by State and
19federal law, based on the findings of the study conducted under
20this subsection (m).
 
21    Section 25-50. Supplier license.
22    (a) The Board may issue a supplier license to a person to
23sell or lease sports wagering equipment, systems, or other
24gaming items to conduct sports wagering and offer services
25related to the equipment or other gaming items and data to a

 

 

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1master sports wagering licensee while the license is active.
2    (b) The Board may adopt rules establishing additional
3requirements for a supplier and any system or other equipment
4utilized for sports wagering. The Board may accept licensing by
5another jurisdiction that it specifically determines to have
6similar licensing requirements as evidence the applicant meets
7supplier licensing requirements.
8    (c) An applicant for a supplier license shall demonstrate
9that the equipment, system, or services that the applicant
10plans to offer to the master sports wagering licensee conforms
11to standards established by the Board and applicable State law.
12The Board may accept approval by another jurisdiction that it
13specifically determines have similar equipment standards as
14evidence the applicant meets the standards established by the
15Board and applicable State law.
16    (d) Applicants shall pay to the Board a nonrefundable
17license and application fee in the amount of $150,000. After
18the initial 4-year term, the Board shall renew supplier
19licenses annually thereafter. Renewal of a supplier license
20shall be granted to a renewal applicant who has continued to
21comply with all applicable statutory and regulatory
22requirements, upon submission of the Board-issued renewal form
23and payment of a $150,000 renewal fee.
24    (e) A supplier shall submit to the Board a list of all
25sports wagering equipment and services sold, delivered, or
26offered to a master sports wagering licensee in this State, as

 

 

10100SB0690ham003- 251 -LRB101 04451 SMS 61572 a

1required by the Board, all of which must be tested and approved
2by an independent testing laboratory approved by the Board. A
3master sports wagering licensee may continue to use supplies
4acquired from a licensed supplier, even if a supplier's license
5expires or is otherwise canceled, unless the Board finds a
6defect in the supplies.
 
7    Section 25-55. Management services provider license.
8    (a) A master sports wagering licensee may contract with an
9entity to conduct that operation in accordance with the rules
10of the Board and the provisions of this Act. That entity shall
11obtain a license as a management services provider before the
12execution of any such contract, and the management services
13provider license shall be issued pursuant to the provisions of
14this Act and any rules adopted by the Board.
15    (b) Each applicant for a management services provider
16license shall meet all requirements for licensure and pay a
17nonrefundable license and application fee of $1,000,000. The
18Board may adopt rules establishing additional requirements for
19an authorized management services provider. The Board may
20accept licensing by another jurisdiction that it specifically
21determines to have similar licensing requirements as evidence
22the applicant meets authorized management services provider
23licensing requirements.
24    (c) Management services provider licenses shall be renewed
25every 4 years to licensees who continue to be in compliance

 

 

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1with all requirements and who pay the renewal fee of $500,000.
2    (d) A person who shares in revenue shall be licensed under
3this Section.
 
4    Section 25-60. Tier 2 official league data provider
5license.
6    (a) A sports governing body or a sports league,
7organization, or association or a vendor authorized by such
8sports governing body or sports league, organization, or
9association to distribute tier 2 official league data may apply
10to the Board for a tier 2 official league data provider
11license.
12    (b) A tier 2 official league data provider licensee may
13provide a master sports wagering licensee with official league
14data for tier 2 sports wagers. No sports governing body or
15sports league, organization, or association or a vendor
16authorized by such sports governing body or sports league,
17organization, or association may provide tier 2 official league
18data to a master sports wagering licensee without a tier 2
19official league data provider license.
20    Notwithstanding the provisions of this Section, the
21licensing and fee requirements of this Section shall not apply
22if, under subsection (g) of Section 25-25, master sports
23wagering licensees are not required to use official league data
24to determine the results of tier 2 sports wagers.
25    (c) The initial license fee for a tier 2 official league

 

 

10100SB0690ham003- 253 -LRB101 04451 SMS 61572 a

1data provider license is payable to the Board at the end of the
2first year of licensure based on the amount of data sold to
3master sports wagering licensees as official league data as
4follows:
5        (1) for data sales up to and including $500,000, the
6    fee is $30,000;
7        (2) for data sales in excess of $500,000 and up to and
8    including $750,000, the fee is $60,000;
9        (3) for data sales in excess of $750,000 and up to and
10    including $1,000,000, the fee is $125,000;
11        (4) for data sales in excess of $1,000,000 and up to
12    and including $1,500,000, the fee is $250,000;
13        (5) for data sales in excess of $1,500,000 and up to
14    and including $2,000,000, the fee is $375,000; and
15        (6) for data sales in excess of $2,000,000, the fee is
16    $500,000.
17    The license is valid for 3 years.
18    (d) The tier 2 official league data provider licensee may
19renew the license for 3 years by paying a renewal fee to the
20Board based on the amount of data sold to master sports
21wagering licensees as official league data in the immediately
22preceding year as provided in paragraphs (1) through (6) of
23subsection (c).
 
24    Section 25-65. Sports wagering at a sports facility. Sports
25wagering may be offered in person at or within a 5-block radius

 

 

10100SB0690ham003- 254 -LRB101 04451 SMS 61572 a

1of a sports facility if sports wagering is offered by a
2designee, as defined in Section 25-40, and that designee has
3received written authorization from the relevant sports team
4that plays its home contests at the sports facility. If more
5than one professional sports team plays its home contests at
6the same sports facility, written authorization is required
7from all sports teams that play home contests at the sports
8facility.
 
9    Section 25-70. Lottery sports wagering pilot program.
10    (a) As used in this Section:
11    "Central system" means the hardware, software,
12peripherals, and network components provided by the
13Department's central system provider that link and support all
14required sports lottery terminals and the central site and that
15are unique and separate from the lottery central system for
16draw and instant games.
17    "Central system provider" means an individual,
18partnership, corporation, or limited liability company that
19has been licensed for the purpose of providing and maintaining
20a central system and the related management facilities
21specifically for the management of sports lottery terminals.
22    "Electronic card" means a card purchased from a lottery
23retailer.
24    "Lottery retailer" means a location licensed by the
25Department to sell lottery tickets or shares.

 

 

10100SB0690ham003- 255 -LRB101 04451 SMS 61572 a

1    "Sports lottery systems" means systems provided by the
2central system provider consisting of sports wagering
3products, risk management, operations, and support services.
4    "Sports lottery terminal" means a terminal linked to the
5central system in which bills or coins are deposited or an
6electronic card is inserted in order to place wagers on a
7sports event and lottery offerings.
8    (b) The Department shall issue one central system provider
9license pursuant to an open and competitive bidding process
10that uses the following procedures:
11        (1) The Department shall make applications for the
12    central system provider license available to the public and
13    allow a reasonable time for applicants to submit
14    applications to the Department.
15        (2) During the filing period for central system
16    provider license applications, the Department may retain
17    professional services to assist the Department in
18    conducting the open and competitive bidding process.
19        (3) After receiving all of the bid proposals, the
20    Department shall open all of the proposals in a public
21    forum and disclose the prospective central system provider
22    names and venture partners, if any.
23        (4) The Department shall summarize the terms of the bid
24    proposals and may make this summary available to the
25    public.
26        (5) The Department shall evaluate the bid proposals

 

 

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1    within a reasonable time and select no more than 3 final
2    applicants to make presentations of their bid proposals to
3    the Department.
4        (6) The final applicants shall make their
5    presentations to the Department on the same day during an
6    open session of the Department.
7        (7) As soon as practicable after the public
8    presentations by the final applicants, the Department, in
9    its discretion, may conduct further negotiations among the
10    3 final applicants. At the conclusion of such negotiations,
11    the Department shall select the winning bid.
12        (8) Upon selection of the winning bid, the Department
13    shall evaluate the winning bid within a reasonable period
14    of time for licensee suitability in accordance with all
15    applicable statutory and regulatory criteria.
16        (9) If the winning bidder is unable or otherwise fails
17    to consummate the transaction, (including if the
18    Department determines that the winning bidder does not
19    satisfy the suitability requirements), the Department may,
20    on the same criteria, select from the remaining bidders.
21        (10) The winning bidder shall pay $20,000,000 to the
22    Department upon being issued the central system provider
23    license.
24    (c) Every sports lottery terminal offered in this State for
25play shall first be tested and approved pursuant to the rules
26of the Department, and each sports lottery terminal offered in

 

 

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1this State for play shall conform to an approved model. For the
2examination of sports lottery terminals and associated
3equipment as required by this Section, the central system
4provider may utilize the services of one or more independent
5outside testing laboratories that have been accredited by a
6national accreditation body and that, in the judgment of the
7Department, are qualified to perform such examinations. Every
8sports lottery terminal offered in this State for play must
9meet minimum standards set by an independent outside testing
10laboratory approved by the Department.
11    (d) During the first 360 days after the effective date of
12this Act, sport lottery terminals may be placed in no more than
132,500 Lottery retail locations in the State. Sports lottery
14terminals may be placed in an additional 2,500 Lottery retail
15locations during the second year after the effective date of
16this Act.
17    (e) A sports lottery terminal may not directly dispense
18coins, cash, tokens, or any other article of exchange or value
19except for receipt tickets. Tickets shall be dispensed by
20pressing the ticket dispensing button on the sports lottery
21terminal at the end of the placement of one's wager or wagers.
22The ticket shall indicate the total amount wagered, odds for
23each wager placed, and the cash award for each bet placed, the
24time of day in a 24-hour format showing hours and minutes, the
25date, the terminal serial number, the sequential number of the
26ticket, and an encrypted validation number from which the

 

 

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1validity of the prize may be determined. The player shall turn
2in this ticket to the appropriate person at a lottery retailer
3to receive the cash award.
4    (f) No lottery retailer may cause or permit any person
5under the age of 21 years to use a sports lottery terminal or
6sports wagering application. A lottery retailer who knowingly
7causes or permits a person under the age of 21 years to use a
8sports lottery terminal or sports wagering application is
9guilty of a business offense and shall be fined an amount not
10to exceed $5,000.
11    (g) A sports lottery terminal shall only accept parlay
12wagers and fixed odds parlay wagers. The Department shall, by
13rule, establish the total amount, as a percentage, of all
14wagers placed that a lottery retailer may retain.
15    (h) The Department shall have jurisdiction over and shall
16supervise all lottery sports wagering operations governed by
17this Section. The Department shall have all powers necessary
18and proper to fully and effectively execute the provisions of
19this Section, including, but not limited to, the following:
20        (1) To investigate applicants and determine the
21    eligibility of applicants for licenses and to select among
22    competing applicants the applicants which best serve the
23    interests of the citizens of Illinois.
24        (2) To have jurisdiction and supervision over all
25    lottery sports wagering operations in this State.
26        (3) To adopt rules for the purpose of administering the

 

 

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1    provisions of this Section and to adopt rules and
2    conditions under which all lottery sports wagering in the
3    State shall be conducted. Such rules are to provide for the
4    prevention of practices detrimental to the public interest
5    and for the best interests of lottery sports wagering,
6    including rules (i) regarding the inspection of such
7    licensees necessary to operate a lottery retailer under any
8    laws or rules applicable to licensees, (ii) to impose
9    penalties for violations of the Act and its rules, and
10    (iii) establishing standards for advertising lottery
11    sports wagering.
12    (i) The Department shall adopt emergency rules to
13administer this Section in accordance with Section 5-45 of the
14Illinois Administrative Procedure Act. For the purposes of the
15Illinois Administrative Procedure Act, the General Assembly
16finds that the adoption of rules to implement this Section is
17deemed an emergency and necessary to the public interest,
18safety, and welfare.
19    (j) For the privilege of operating lottery sports wagering
20under this Section, all proceeds minus net of proceeds returned
21to players shall be electronically transferred daily or weekly,
22at the discretion of the Director of the Lottery, into the
23State Lottery Fund. After amounts owed to the central system
24provider and licensed agents, as determined by the Department,
25are paid from the moneys deposited into the State Lottery Fund
26under this subsection, the remainder shall be transferred on

 

 

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1the 15th of each month to the Capital Projects Fund.
2    (k) This Section is repealed on January 1, 2024.
 
3    Section 25-75. Reporting prohibited conduct;
4investigations of prohibited conduct.
5    (a) The Board shall establish a hotline or other method of
6communication that allows any person to confidentially report
7information about prohibited conduct to the Board.
8    (b) The Board shall investigate all reasonable allegations
9of prohibited conduct and refer any allegations it deems
10credible to the appropriate law enforcement entity.
11    (c) The identity of any reporting person shall remain
12confidential unless that person authorizes disclosure of his or
13her identity or until such time as the allegation of prohibited
14conduct is referred to law enforcement.
15    (d) If the Board receives a complaint of prohibited conduct
16by an athlete, the Board shall notify the appropriate sports
17governing body of the athlete to review the complaint as
18provided by rule.
19    (e) The Board shall adopt emergency rules to administer
20this Section in accordance with Section 5-45 of the Illinois
21Administrative Procedure Act.
22    (f) The Board shall adopt rules governing investigations of
23prohibited conduct and referrals to law enforcement entities.
 
24    Section 25-80. Personal biometric data. A master sports

 

 

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1wagering licensee shall not purchase or use any personal
2biometric data of an athlete unless the master sports wagering
3licensee has received written permission from the athlete's
4exclusive bargaining representative.
 
5    Section 25-85. Supplier diversity goals for sports
6wagering.
7    (a) As used in this Section only, "licensee" means a
8licensee under this Act other than an occupational licensee.
9    (b) The public policy of this State is to collaboratively
10work with companies that serve Illinois residents to improve
11their supplier diversity in a non-antagonistic manner.
12    (c) The Board and the Department shall require all
13licensees under this Act to submit an annual report by April
1415, 2020 and every April 15 thereafter, in a searchable Adobe
15PDF format, on all procurement goals and actual spending for
16businesses owned by women, minorities, veterans, and persons
17with disabilities and small business enterprises in the
18previous calendar year. These goals shall be expressed as a
19percentage of the total work performed by the entity submitting
20the report, and the actual spending for all businesses owned by
21women, minorities, veterans, and persons with disabilities and
22small business enterprises shall also be expressed as a
23percentage of the total work performed by the entity submitting
24the report.
25    (d) Each licensee in its annual report shall include the

 

 

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1following information:
2        (1) an explanation of the plan for the next year to
3    increase participation;
4        (2) an explanation of the plan to increase the goals;
5        (3) the areas of procurement each licensee shall be
6    actively seeking more participation in the next year;
7        (4) an outline of the plan to alert and encourage
8    potential vendors in that area to seek business from the
9    licensee;
10        (5) an explanation of the challenges faced in finding
11    quality vendors and offer any suggestions for what the
12    Board could do to be helpful to identify those vendors;
13        (6) a list of the certifications the licensee
14    recognizes;
15        (7) the point of contact for any potential vendor who
16    wishes to do business with the licensee and explain the
17    process for a vendor to enroll with the licensee as a
18    businesses owned by women, minorities, veterans, or
19    persons with disabilities; and
20        (8) any particular success stories to encourage other
21    licensee to emulate best practices.
22    (e) Each annual report shall include as much State-specific
23data as possible. If the submitting entity does not submit
24State-specific data, then the licensee shall include any
25national data it does have and explain why it could not submit
26State-specific data and how it intends to do so in future

 

 

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1reports, if possible.
2    (f) Each annual report shall include the rules,
3regulations, and definitions used for the procurement goals in
4the licensee's annual report.
5    (g) The Board, Department, and all licensees shall hold an
6annual workshop and job fair open to the public in 2020 and
7every year thereafter on the state of supplier diversity to
8collaboratively seek solutions to structural impediments to
9achieving stated goals, including testimony from each licensee
10as well as subject matter experts and advocates. The Board and
11Department shall publish a database on their websites of the
12point of contact for licensees they regulate under this Act for
13supplier diversity, along with a list of certifications each
14licensee recognizes from the information submitted in each
15annual report. The Board and Department shall publish each
16annual report on their websites and shall maintain each annual
17report for at least 5 years.
 
18    Section 25-90. Tax; Sports Wagering Fund.
19    (a) For the privilege of holding a license to operate
20sports wagering under this Act, this State shall impose and
21collect 15% of a master sports wagering licensee's adjusted
22gross sports wagering receipts from sports wagering. The
23accrual method of accounting shall be used for purposes of
24calculating the amount of the tax owed by the licensee.
25    The taxes levied and collected pursuant to this subsection

 

 

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1(a) are due and payable to the Board no later than the last day
2of the month following the calendar month in which the adjusted
3gross sports wagering receipts were received and the tax
4obligation was accrued.
5    (a-5) In addition to the tax imposed under subsection (a)
6of this Section, for the privilege of holding a license to
7operate sports wagering under this Act, the State shall impose
8and collect 2% of the adjusted gross receipts from sports
9wagers that are placed within a home rule county with a
10population of over 3,000,000 inhabitants, which shall be paid,
11subject to appropriation from the General Assembly, from the
12Sports Wagering Fund to that home rule county for the purpose
13of enhancing the county's criminal justice system.
14    (b) The Sports Wagering Fund is hereby created as special
15fund in the State treasury. Except as otherwise provided in
16this Act, all moneys collected under this Act by the Board
17shall be deposited into the Sports Wagering Fund. On the 25th
18of each month, any moneys remaining in the Sports Wagering Fund
19shall be transferred to the Capital Projects Fund.
 
20    Section 25-95. Compulsive gambling. Each master sports
21wagering licensee shall include a statement regarding
22obtaining assistance with gambling problems, the text of which
23shall be determined by rule by the Department of Human
24Services, on the master sports wagering licensee's portal,
25Internet website, or computer or mobile application.
 

 

 

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1    Section 25-100. Voluntary self-exclusion program for
2sports wagering. Any resident, or non-resident if allowed to
3participate in sports wagering, may voluntarily prohibit
4himself or herself from establishing a sports wagering account
5with a licensee under this Act. The Board and Department shall
6incorporate the voluntary self-exclusion program for sports
7wagering into any existing self-exclusion program that it
8operates on the effective date of this Act.
 
9    Section 25-105. Report to General Assembly. On or before
10January 15, 2021 and every January 15 thereafter, the Board
11shall provide a report to the General Assembly on sports
12wagering conducted under this Act.
 
13    Section 25-110. Preemption. Nothing in this Act shall be
14deemed to diminish the rights, privileges, or remedies of a
15person under any other federal or State law, rule, or
16regulation.
 
17    Section 25-900. The Illinois Administrative Procedure Act
18is amended by changing Section 5-45 as follows:
 
19    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
20    Sec. 5-45. Emergency rulemaking.
21    (a) "Emergency" means the existence of any situation that

 

 

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1any agency finds reasonably constitutes a threat to the public
2interest, safety, or welfare.
3    (b) If any agency finds that an emergency exists that
4requires adoption of a rule upon fewer days than is required by
5Section 5-40 and states in writing its reasons for that
6finding, the agency may adopt an emergency rule without prior
7notice or hearing upon filing a notice of emergency rulemaking
8with the Secretary of State under Section 5-70. The notice
9shall include the text of the emergency rule and shall be
10published in the Illinois Register. Consent orders or other
11court orders adopting settlements negotiated by an agency may
12be adopted under this Section. Subject to applicable
13constitutional or statutory provisions, an emergency rule
14becomes effective immediately upon filing under Section 5-65 or
15at a stated date less than 10 days thereafter. The agency's
16finding and a statement of the specific reasons for the finding
17shall be filed with the rule. The agency shall take reasonable
18and appropriate measures to make emergency rules known to the
19persons who may be affected by them.
20    (c) An emergency rule may be effective for a period of not
21longer than 150 days, but the agency's authority to adopt an
22identical rule under Section 5-40 is not precluded. No
23emergency rule may be adopted more than once in any 24-month
24period, except that this limitation on the number of emergency
25rules that may be adopted in a 24-month period does not apply
26to (i) emergency rules that make additions to and deletions

 

 

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1from the Drug Manual under Section 5-5.16 of the Illinois
2Public Aid Code or the generic drug formulary under Section
33.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
4emergency rules adopted by the Pollution Control Board before
5July 1, 1997 to implement portions of the Livestock Management
6Facilities Act, (iii) emergency rules adopted by the Illinois
7Department of Public Health under subsections (a) through (i)
8of Section 2 of the Department of Public Health Act when
9necessary to protect the public's health, (iv) emergency rules
10adopted pursuant to subsection (n) of this Section, (v)
11emergency rules adopted pursuant to subsection (o) of this
12Section, or (vi) emergency rules adopted pursuant to subsection
13(c-5) of this Section. Two or more emergency rules having
14substantially the same purpose and effect shall be deemed to be
15a single rule for purposes of this Section.
16    (c-5) To facilitate the maintenance of the program of group
17health benefits provided to annuitants, survivors, and retired
18employees under the State Employees Group Insurance Act of
191971, rules to alter the contributions to be paid by the State,
20annuitants, survivors, retired employees, or any combination
21of those entities, for that program of group health benefits,
22shall be adopted as emergency rules. The adoption of those
23rules shall be considered an emergency and necessary for the
24public interest, safety, and welfare.
25    (d) In order to provide for the expeditious and timely
26implementation of the State's fiscal year 1999 budget,

 

 

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1emergency rules to implement any provision of Public Act 90-587
2or 90-588 or any other budget initiative for fiscal year 1999
3may be adopted in accordance with this Section by the agency
4charged with administering that provision or initiative,
5except that the 24-month limitation on the adoption of
6emergency rules and the provisions of Sections 5-115 and 5-125
7do not apply to rules adopted under this subsection (d). The
8adoption of emergency rules authorized by this subsection (d)
9shall be deemed to be necessary for the public interest,
10safety, and welfare.
11    (e) In order to provide for the expeditious and timely
12implementation of the State's fiscal year 2000 budget,
13emergency rules to implement any provision of Public Act 91-24
14or any other budget initiative for fiscal year 2000 may be
15adopted in accordance with this Section by the agency charged
16with administering that provision or initiative, except that
17the 24-month limitation on the adoption of emergency rules and
18the provisions of Sections 5-115 and 5-125 do not apply to
19rules adopted under this subsection (e). The adoption of
20emergency rules authorized by this subsection (e) shall be
21deemed to be necessary for the public interest, safety, and
22welfare.
23    (f) In order to provide for the expeditious and timely
24implementation of the State's fiscal year 2001 budget,
25emergency rules to implement any provision of Public Act 91-712
26or any other budget initiative for fiscal year 2001 may be

 

 

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1adopted in accordance with this Section by the agency charged
2with administering that provision or initiative, except that
3the 24-month limitation on the adoption of emergency rules and
4the provisions of Sections 5-115 and 5-125 do not apply to
5rules adopted under this subsection (f). The adoption of
6emergency rules authorized by this subsection (f) shall be
7deemed to be necessary for the public interest, safety, and
8welfare.
9    (g) In order to provide for the expeditious and timely
10implementation of the State's fiscal year 2002 budget,
11emergency rules to implement any provision of Public Act 92-10
12or any other budget initiative for fiscal year 2002 may be
13adopted in accordance with this Section by the agency charged
14with administering that provision or initiative, except that
15the 24-month limitation on the adoption of emergency rules and
16the provisions of Sections 5-115 and 5-125 do not apply to
17rules adopted under this subsection (g). The adoption of
18emergency rules authorized by this subsection (g) shall be
19deemed to be necessary for the public interest, safety, and
20welfare.
21    (h) In order to provide for the expeditious and timely
22implementation of the State's fiscal year 2003 budget,
23emergency rules to implement any provision of Public Act 92-597
24or any other budget initiative for fiscal year 2003 may be
25adopted in accordance with this Section by the agency charged
26with administering that provision or initiative, except that

 

 

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1the 24-month limitation on the adoption of emergency rules and
2the provisions of Sections 5-115 and 5-125 do not apply to
3rules adopted under this subsection (h). The adoption of
4emergency rules authorized by this subsection (h) shall be
5deemed to be necessary for the public interest, safety, and
6welfare.
7    (i) In order to provide for the expeditious and timely
8implementation of the State's fiscal year 2004 budget,
9emergency rules to implement any provision of Public Act 93-20
10or any other budget initiative for fiscal year 2004 may be
11adopted in accordance with this Section by the agency charged
12with administering that provision or initiative, except that
13the 24-month limitation on the adoption of emergency rules and
14the provisions of Sections 5-115 and 5-125 do not apply to
15rules adopted under this subsection (i). The adoption of
16emergency rules authorized by this subsection (i) shall be
17deemed to be necessary for the public interest, safety, and
18welfare.
19    (j) In order to provide for the expeditious and timely
20implementation of the provisions of the State's fiscal year
212005 budget as provided under the Fiscal Year 2005 Budget
22Implementation (Human Services) Act, emergency rules to
23implement any provision of the Fiscal Year 2005 Budget
24Implementation (Human Services) Act may be adopted in
25accordance with this Section by the agency charged with
26administering that provision, except that the 24-month

 

 

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1limitation on the adoption of emergency rules and the
2provisions of Sections 5-115 and 5-125 do not apply to rules
3adopted under this subsection (j). The Department of Public Aid
4may also adopt rules under this subsection (j) necessary to
5administer the Illinois Public Aid Code and the Children's
6Health Insurance Program Act. The adoption of emergency rules
7authorized by this subsection (j) shall be deemed to be
8necessary for the public interest, safety, and welfare.
9    (k) In order to provide for the expeditious and timely
10implementation of the provisions of the State's fiscal year
112006 budget, emergency rules to implement any provision of
12Public Act 94-48 or any other budget initiative for fiscal year
132006 may be adopted in accordance with this Section by the
14agency charged with administering that provision or
15initiative, except that the 24-month limitation on the adoption
16of emergency rules and the provisions of Sections 5-115 and
175-125 do not apply to rules adopted under this subsection (k).
18The Department of Healthcare and Family Services may also adopt
19rules under this subsection (k) necessary to administer the
20Illinois Public Aid Code, the Senior Citizens and Persons with
21Disabilities Property Tax Relief Act, the Senior Citizens and
22Disabled Persons Prescription Drug Discount Program Act (now
23the Illinois Prescription Drug Discount Program Act), and the
24Children's Health Insurance Program Act. The adoption of
25emergency rules authorized by this subsection (k) shall be
26deemed to be necessary for the public interest, safety, and

 

 

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1welfare.
2    (l) In order to provide for the expeditious and timely
3implementation of the provisions of the State's fiscal year
42007 budget, the Department of Healthcare and Family Services
5may adopt emergency rules during fiscal year 2007, including
6rules effective July 1, 2007, in accordance with this
7subsection to the extent necessary to administer the
8Department's responsibilities with respect to amendments to
9the State plans and Illinois waivers approved by the federal
10Centers for Medicare and Medicaid Services necessitated by the
11requirements of Title XIX and Title XXI of the federal Social
12Security Act. The adoption of emergency rules authorized by
13this subsection (l) shall be deemed to be necessary for the
14public interest, safety, and welfare.
15    (m) In order to provide for the expeditious and timely
16implementation of the provisions of the State's fiscal year
172008 budget, the Department of Healthcare and Family Services
18may adopt emergency rules during fiscal year 2008, including
19rules effective July 1, 2008, in accordance with this
20subsection to the extent necessary to administer the
21Department's responsibilities with respect to amendments to
22the State plans and Illinois waivers approved by the federal
23Centers for Medicare and Medicaid Services necessitated by the
24requirements of Title XIX and Title XXI of the federal Social
25Security Act. The adoption of emergency rules authorized by
26this subsection (m) shall be deemed to be necessary for the

 

 

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1public interest, safety, and welfare.
2    (n) In order to provide for the expeditious and timely
3implementation of the provisions of the State's fiscal year
42010 budget, emergency rules to implement any provision of
5Public Act 96-45 or any other budget initiative authorized by
6the 96th General Assembly for fiscal year 2010 may be adopted
7in accordance with this Section by the agency charged with
8administering that provision or initiative. The adoption of
9emergency rules authorized by this subsection (n) shall be
10deemed to be necessary for the public interest, safety, and
11welfare. The rulemaking authority granted in this subsection
12(n) shall apply only to rules promulgated during Fiscal Year
132010.
14    (o) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162011 budget, emergency rules to implement any provision of
17Public Act 96-958 or any other budget initiative authorized by
18the 96th General Assembly for fiscal year 2011 may be adopted
19in accordance with this Section by the agency charged with
20administering that provision or initiative. The adoption of
21emergency rules authorized by this subsection (o) is deemed to
22be necessary for the public interest, safety, and welfare. The
23rulemaking authority granted in this subsection (o) applies
24only to rules promulgated on or after July 1, 2010 (the
25effective date of Public Act 96-958) through June 30, 2011.
26    (p) In order to provide for the expeditious and timely

 

 

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1implementation of the provisions of Public Act 97-689,
2emergency rules to implement any provision of Public Act 97-689
3may be adopted in accordance with this subsection (p) by the
4agency charged with administering that provision or
5initiative. The 150-day limitation of the effective period of
6emergency rules does not apply to rules adopted under this
7subsection (p), and the effective period may continue through
8June 30, 2013. The 24-month limitation on the adoption of
9emergency rules does not apply to rules adopted under this
10subsection (p). The adoption of emergency rules authorized by
11this subsection (p) is deemed to be necessary for the public
12interest, safety, and welfare.
13    (q) In order to provide for the expeditious and timely
14implementation of the provisions of Articles 7, 8, 9, 11, and
1512 of Public Act 98-104, emergency rules to implement any
16provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
17may be adopted in accordance with this subsection (q) by the
18agency charged with administering that provision or
19initiative. The 24-month limitation on the adoption of
20emergency rules does not apply to rules adopted under this
21subsection (q). The adoption of emergency rules authorized by
22this subsection (q) is deemed to be necessary for the public
23interest, safety, and welfare.
24    (r) In order to provide for the expeditious and timely
25implementation of the provisions of Public Act 98-651,
26emergency rules to implement Public Act 98-651 may be adopted

 

 

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1in accordance with this subsection (r) by the Department of
2Healthcare and Family Services. The 24-month limitation on the
3adoption of emergency rules does not apply to rules adopted
4under this subsection (r). The adoption of emergency rules
5authorized by this subsection (r) is deemed to be necessary for
6the public interest, safety, and welfare.
7    (s) In order to provide for the expeditious and timely
8implementation of the provisions of Sections 5-5b.1 and 5A-2 of
9the Illinois Public Aid Code, emergency rules to implement any
10provision of Section 5-5b.1 or Section 5A-2 of the Illinois
11Public Aid Code may be adopted in accordance with this
12subsection (s) by the Department of Healthcare and Family
13Services. The rulemaking authority granted in this subsection
14(s) shall apply only to those rules adopted prior to July 1,
152015. Notwithstanding any other provision of this Section, any
16emergency rule adopted under this subsection (s) shall only
17apply to payments made for State fiscal year 2015. The adoption
18of emergency rules authorized by this subsection (s) is deemed
19to be necessary for the public interest, safety, and welfare.
20    (t) In order to provide for the expeditious and timely
21implementation of the provisions of Article II of Public Act
2299-6, emergency rules to implement the changes made by Article
23II of Public Act 99-6 to the Emergency Telephone System Act may
24be adopted in accordance with this subsection (t) by the
25Department of State Police. The rulemaking authority granted in
26this subsection (t) shall apply only to those rules adopted

 

 

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1prior to July 1, 2016. The 24-month limitation on the adoption
2of emergency rules does not apply to rules adopted under this
3subsection (t). The adoption of emergency rules authorized by
4this subsection (t) is deemed to be necessary for the public
5interest, safety, and welfare.
6    (u) In order to provide for the expeditious and timely
7implementation of the provisions of the Burn Victims Relief
8Act, emergency rules to implement any provision of the Act may
9be adopted in accordance with this subsection (u) by the
10Department of Insurance. The rulemaking authority granted in
11this subsection (u) shall apply only to those rules adopted
12prior to December 31, 2015. The adoption of emergency rules
13authorized by this subsection (u) is deemed to be necessary for
14the public interest, safety, and welfare.
15    (v) In order to provide for the expeditious and timely
16implementation of the provisions of Public Act 99-516,
17emergency rules to implement Public Act 99-516 may be adopted
18in accordance with this subsection (v) by the Department of
19Healthcare and Family Services. The 24-month limitation on the
20adoption of emergency rules does not apply to rules adopted
21under this subsection (v). The adoption of emergency rules
22authorized by this subsection (v) is deemed to be necessary for
23the public interest, safety, and welfare.
24    (w) In order to provide for the expeditious and timely
25implementation of the provisions of Public Act 99-796,
26emergency rules to implement the changes made by Public Act

 

 

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199-796 may be adopted in accordance with this subsection (w) by
2the Adjutant General. The adoption of emergency rules
3authorized by this subsection (w) is deemed to be necessary for
4the public interest, safety, and welfare.
5    (x) In order to provide for the expeditious and timely
6implementation of the provisions of Public Act 99-906,
7emergency rules to implement subsection (i) of Section 16-115D,
8subsection (g) of Section 16-128A, and subsection (a) of
9Section 16-128B of the Public Utilities Act may be adopted in
10accordance with this subsection (x) by the Illinois Commerce
11Commission. The rulemaking authority granted in this
12subsection (x) shall apply only to those rules adopted within
13180 days after June 1, 2017 (the effective date of Public Act
1499-906). The adoption of emergency rules authorized by this
15subsection (x) is deemed to be necessary for the public
16interest, safety, and welfare.
17    (y) In order to provide for the expeditious and timely
18implementation of the provisions of Public Act 100-23,
19emergency rules to implement the changes made by Public Act
20100-23 to Section 4.02 of the Illinois Act on the Aging,
21Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
22Section 55-30 of the Alcoholism and Other Drug Abuse and
23Dependency Act, and Sections 74 and 75 of the Mental Health and
24Developmental Disabilities Administrative Act may be adopted
25in accordance with this subsection (y) by the respective
26Department. The adoption of emergency rules authorized by this

 

 

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1subsection (y) is deemed to be necessary for the public
2interest, safety, and welfare.
3    (z) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 100-554,
5emergency rules to implement the changes made by Public Act
6100-554 to Section 4.7 of the Lobbyist Registration Act may be
7adopted in accordance with this subsection (z) by the Secretary
8of State. The adoption of emergency rules authorized by this
9subsection (z) is deemed to be necessary for the public
10interest, safety, and welfare.
11    (aa) In order to provide for the expeditious and timely
12initial implementation of the changes made to Articles 5, 5A,
1312, and 14 of the Illinois Public Aid Code under the provisions
14of Public Act 100-581, the Department of Healthcare and Family
15Services may adopt emergency rules in accordance with this
16subsection (aa). The 24-month limitation on the adoption of
17emergency rules does not apply to rules to initially implement
18the changes made to Articles 5, 5A, 12, and 14 of the Illinois
19Public Aid Code adopted under this subsection (aa). The
20adoption of emergency rules authorized by this subsection (aa)
21is deemed to be necessary for the public interest, safety, and
22welfare.
23    (bb) In order to provide for the expeditious and timely
24implementation of the provisions of Public Act 100-587,
25emergency rules to implement the changes made by Public Act
26100-587 to Section 4.02 of the Illinois Act on the Aging,

 

 

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1Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
2subsection (b) of Section 55-30 of the Alcoholism and Other
3Drug Abuse and Dependency Act, Section 5-104 of the Specialized
4Mental Health Rehabilitation Act of 2013, and Section 75 and
5subsection (b) of Section 74 of the Mental Health and
6Developmental Disabilities Administrative Act may be adopted
7in accordance with this subsection (bb) by the respective
8Department. The adoption of emergency rules authorized by this
9subsection (bb) is deemed to be necessary for the public
10interest, safety, and welfare.
11    (cc) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 100-587,
13emergency rules may be adopted in accordance with this
14subsection (cc) to implement the changes made by Public Act
15100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
16Pension Code by the Board created under Article 14 of the Code;
17Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
18the Board created under Article 15 of the Code; and Sections
1916-190.5 and 16-190.6 of the Illinois Pension Code by the Board
20created under Article 16 of the Code. The adoption of emergency
21rules authorized by this subsection (cc) is deemed to be
22necessary for the public interest, safety, and welfare.
23    (dd) In order to provide for the expeditious and timely
24implementation of the provisions of Public Act 100-864,
25emergency rules to implement the changes made by Public Act
26100-864 to Section 3.35 of the Newborn Metabolic Screening Act

 

 

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1may be adopted in accordance with this subsection (dd) by the
2Secretary of State. The adoption of emergency rules authorized
3by this subsection (dd) is deemed to be necessary for the
4public interest, safety, and welfare.
5    (ee) In order to provide for the expeditious and timely
6implementation of the provisions of Public Act 100-1172 this
7amendatory Act of the 100th General Assembly, emergency rules
8implementing the Illinois Underground Natural Gas Storage
9Safety Act may be adopted in accordance with this subsection by
10the Department of Natural Resources. The adoption of emergency
11rules authorized by this subsection is deemed to be necessary
12for the public interest, safety, and welfare.
13    (ff) (ee) In order to provide for the expeditious and
14timely initial implementation of the changes made to Articles
155A and 14 of the Illinois Public Aid Code under the provisions
16of Public Act 100-1181 this amendatory Act of the 100th General
17Assembly, the Department of Healthcare and Family Services may
18on a one-time-only basis adopt emergency rules in accordance
19with this subsection (ff) (ee). The 24-month limitation on the
20adoption of emergency rules does not apply to rules to
21initially implement the changes made to Articles 5A and 14 of
22the Illinois Public Aid Code adopted under this subsection (ff)
23(ee). The adoption of emergency rules authorized by this
24subsection (ff) (ee) is deemed to be necessary for the public
25interest, safety, and welfare.
26    (gg) (ff) In order to provide for the expeditious and

 

 

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1timely implementation of the provisions of Public Act 101-1
2this amendatory Act of the 101st General Assembly, emergency
3rules may be adopted by the Department of Labor in accordance
4with this subsection (gg) (ff) to implement the changes made by
5Public Act 101-1 this amendatory Act of the 101st General
6Assembly to the Minimum Wage Law. The adoption of emergency
7rules authorized by this subsection (gg) (ff) is deemed to be
8necessary for the public interest, safety, and welfare.
9    (ii) In order to provide for the expeditious and timely
10implementation of the provisions of Section 25-70 of the Sports
11Wagering Act, emergency rules to implement Section 25-70 of the
12Sports Wagering Act may be adopted in accordance with this
13subsection (ii) by the Department of the Lottery as provided in
14the Sports Wagering Act. The adoption of emergency rules
15authorized by this subsection (ii) is deemed to be necessary
16for the public interest, safety, and welfare.
17    (jj) In order to provide for the expeditious and timely
18implementation of the Sports Wagering Act, emergency rules to
19implement the Sports Wagering Act may be adopted in accordance
20with this subsection (jj) by the Illinois Gaming Board. The
21adoption of emergency rules authorized by this subsection (jj)
22is deemed to be necessary for the public interest, safety, and
23welfare.
24(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
25100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
266-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;

 

 

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1100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
23-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
 
3    Section 25-905. The State Finance Act is amended by adding
4Section 5.896 as follows:
 
5    (30 ILCS 105/5.896 new)
6    Sec. 5.896. The Sports Wagering Fund.
 
7    Section 25-910. The Riverboat Gambling Act is amended by
8changing Section 13 as follows:
 
9    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
10    Sec. 13. Wagering tax; rate; distribution.
11    (a) Until January 1, 1998, a tax is imposed on the adjusted
12gross receipts received from gambling games authorized under
13this Act at the rate of 20%.
14    (a-1) From January 1, 1998 until July 1, 2002, a privilege
15tax is imposed on persons engaged in the business of conducting
16riverboat gambling operations, based on the adjusted gross
17receipts received by a licensed owner from gambling games
18authorized under this Act at the following rates:
19        15% of annual adjusted gross receipts up to and
20    including $25,000,000;
21        20% of annual adjusted gross receipts in excess of
22    $25,000,000 but not exceeding $50,000,000;

 

 

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1        25% of annual adjusted gross receipts in excess of
2    $50,000,000 but not exceeding $75,000,000;
3        30% of annual adjusted gross receipts in excess of
4    $75,000,000 but not exceeding $100,000,000;
5        35% of annual adjusted gross receipts in excess of
6    $100,000,000.
7    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
8is imposed on persons engaged in the business of conducting
9riverboat gambling operations, other than licensed managers
10conducting riverboat gambling operations on behalf of the
11State, based on the adjusted gross receipts received by a
12licensed owner from gambling games authorized under this Act at
13the following rates:
14        15% of annual adjusted gross receipts up to and
15    including $25,000,000;
16        22.5% of annual adjusted gross receipts in excess of
17    $25,000,000 but not exceeding $50,000,000;
18        27.5% of annual adjusted gross receipts in excess of
19    $50,000,000 but not exceeding $75,000,000;
20        32.5% of annual adjusted gross receipts in excess of
21    $75,000,000 but not exceeding $100,000,000;
22        37.5% of annual adjusted gross receipts in excess of
23    $100,000,000 but not exceeding $150,000,000;
24        45% of annual adjusted gross receipts in excess of
25    $150,000,000 but not exceeding $200,000,000;
26        50% of annual adjusted gross receipts in excess of

 

 

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1    $200,000,000.
2    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
3persons engaged in the business of conducting riverboat
4gambling operations, other than licensed managers conducting
5riverboat gambling operations on behalf of the State, based on
6the adjusted gross receipts received by a licensed owner from
7gambling games authorized under this Act at the following
8rates:
9        15% of annual adjusted gross receipts up to and
10    including $25,000,000;
11        27.5% of annual adjusted gross receipts in excess of
12    $25,000,000 but not exceeding $37,500,000;
13        32.5% of annual adjusted gross receipts in excess of
14    $37,500,000 but not exceeding $50,000,000;
15        37.5% of annual adjusted gross receipts in excess of
16    $50,000,000 but not exceeding $75,000,000;
17        45% of annual adjusted gross receipts in excess of
18    $75,000,000 but not exceeding $100,000,000;
19        50% of annual adjusted gross receipts in excess of
20    $100,000,000 but not exceeding $250,000,000;
21        70% of annual adjusted gross receipts in excess of
22    $250,000,000.
23    An amount equal to the amount of wagering taxes collected
24under this subsection (a-3) that are in addition to the amount
25of wagering taxes that would have been collected if the
26wagering tax rates under subsection (a-2) were in effect shall

 

 

10100SB0690ham003- 285 -LRB101 04451 SMS 61572 a

1be paid into the Common School Fund.
2    The privilege tax imposed under this subsection (a-3) shall
3no longer be imposed beginning on the earlier of (i) July 1,
42005; (ii) the first date after June 20, 2003 that riverboat
5gambling operations are conducted pursuant to a dormant
6license; or (iii) the first day that riverboat gambling
7operations are conducted under the authority of an owners
8license that is in addition to the 10 owners licenses initially
9authorized under this Act. For the purposes of this subsection
10(a-3), the term "dormant license" means an owners license that
11is authorized by this Act under which no riverboat gambling
12operations are being conducted on June 20, 2003.
13    (a-4) Beginning on the first day on which the tax imposed
14under subsection (a-3) is no longer imposed, a privilege tax is
15imposed on persons engaged in the business of conducting
16riverboat gambling operations, other than licensed managers
17conducting riverboat gambling operations on behalf of the
18State, based on the adjusted gross receipts received by a
19licensed owner from gambling games authorized under this Act at
20the following rates:
21        15% of annual adjusted gross receipts up to and
22    including $25,000,000;
23        22.5% of annual adjusted gross receipts in excess of
24    $25,000,000 but not exceeding $50,000,000;
25        27.5% of annual adjusted gross receipts in excess of
26    $50,000,000 but not exceeding $75,000,000;

 

 

10100SB0690ham003- 286 -LRB101 04451 SMS 61572 a

1        32.5% of annual adjusted gross receipts in excess of
2    $75,000,000 but not exceeding $100,000,000;
3        37.5% of annual adjusted gross receipts in excess of
4    $100,000,000 but not exceeding $150,000,000;
5        45% of annual adjusted gross receipts in excess of
6    $150,000,000 but not exceeding $200,000,000;
7        50% of annual adjusted gross receipts in excess of
8    $200,000,000.
9    (a-8) Riverboat gambling operations conducted by a
10licensed manager on behalf of the State are not subject to the
11tax imposed under this Section.
12    (a-10) The taxes imposed by this Section shall be paid by
13the licensed owner to the Board not later than 5:00 o'clock
14p.m. of the day after the day when the wagers were made.
15    (a-15) If the privilege tax imposed under subsection (a-3)
16is no longer imposed pursuant to item (i) of the last paragraph
17of subsection (a-3), then by June 15 of each year, each owners
18licensee, other than an owners licensee that admitted 1,000,000
19persons or fewer in calendar year 2004, must, in addition to
20the payment of all amounts otherwise due under this Section,
21pay to the Board a reconciliation payment in the amount, if
22any, by which the licensed owner's base amount exceeds the
23amount of net privilege tax paid by the licensed owner to the
24Board in the then current State fiscal year. A licensed owner's
25net privilege tax obligation due for the balance of the State
26fiscal year shall be reduced up to the total of the amount paid

 

 

10100SB0690ham003- 287 -LRB101 04451 SMS 61572 a

1by the licensed owner in its June 15 reconciliation payment.
2The obligation imposed by this subsection (a-15) is binding on
3any person, firm, corporation, or other entity that acquires an
4ownership interest in any such owners license. The obligation
5imposed under this subsection (a-15) terminates on the earliest
6of: (i) July 1, 2007, (ii) the first day after the effective
7date of this amendatory Act of the 94th General Assembly that
8riverboat gambling operations are conducted pursuant to a
9dormant license, (iii) the first day that riverboat gambling
10operations are conducted under the authority of an owners
11license that is in addition to the 10 owners licenses initially
12authorized under this Act, or (iv) the first day that a
13licensee under the Illinois Horse Racing Act of 1975 conducts
14gaming operations with slot machines or other electronic gaming
15devices. The Board must reduce the obligation imposed under
16this subsection (a-15) by an amount the Board deems reasonable
17for any of the following reasons: (A) an act or acts of God,
18(B) an act of bioterrorism or terrorism or a bioterrorism or
19terrorism threat that was investigated by a law enforcement
20agency, or (C) a condition beyond the control of the owners
21licensee that does not result from any act or omission by the
22owners licensee or any of its agents and that poses a hazardous
23threat to the health and safety of patrons. If an owners
24licensee pays an amount in excess of its liability under this
25Section, the Board shall apply the overpayment to future
26payments required under this Section.

 

 

10100SB0690ham003- 288 -LRB101 04451 SMS 61572 a

1    For purposes of this subsection (a-15):
2    "Act of God" means an incident caused by the operation of
3an extraordinary force that cannot be foreseen, that cannot be
4avoided by the exercise of due care, and for which no person
5can be held liable.
6    "Base amount" means the following:
7        For a riverboat in Alton, $31,000,000.
8        For a riverboat in East Peoria, $43,000,000.
9        For the Empress riverboat in Joliet, $86,000,000.
10        For a riverboat in Metropolis, $45,000,000.
11        For the Harrah's riverboat in Joliet, $114,000,000.
12        For a riverboat in Aurora, $86,000,000.
13        For a riverboat in East St. Louis, $48,500,000.
14        For a riverboat in Elgin, $198,000,000.
15    "Dormant license" has the meaning ascribed to it in
16subsection (a-3).
17    "Net privilege tax" means all privilege taxes paid by a
18licensed owner to the Board under this Section, less all
19payments made from the State Gaming Fund pursuant to subsection
20(b) of this Section.
21    The changes made to this subsection (a-15) by Public Act
2294-839 are intended to restate and clarify the intent of Public
23Act 94-673 with respect to the amount of the payments required
24to be made under this subsection by an owners licensee to the
25Board.
26    (b) Until January 1, 1998, 25% of the tax revenue deposited

 

 

10100SB0690ham003- 289 -LRB101 04451 SMS 61572 a

1in the State Gaming Fund under this Section shall be paid,
2subject to appropriation by the General Assembly, to the unit
3of local government which is designated as the home dock of the
4riverboat. Beginning January 1, 1998, from the tax revenue
5deposited in the State Gaming Fund under this Section, an
6amount equal to 5% of adjusted gross receipts generated by a
7riverboat shall be paid monthly, subject to appropriation by
8the General Assembly, to the unit of local government that is
9designated as the home dock of the riverboat. From the tax
10revenue deposited in the State Gaming Fund pursuant to
11riverboat gambling operations conducted by a licensed manager
12on behalf of the State, an amount equal to 5% of adjusted gross
13receipts generated pursuant to those riverboat gambling
14operations shall be paid monthly, subject to appropriation by
15the General Assembly, to the unit of local government that is
16designated as the home dock of the riverboat upon which those
17riverboat gambling operations are conducted.
18    (c) Appropriations, as approved by the General Assembly,
19may be made from the State Gaming Fund to the Board (i) for the
20administration and enforcement of this Act and the Video Gaming
21Act, (ii) for distribution to the Department of State Police
22and to the Department of Revenue for the enforcement of this
23Act, and (iii) to the Department of Human Services for the
24administration of programs to treat problem gambling,
25including problem gambling from sports wagering.
26    (c-5) Before May 26, 2006 (the effective date of Public Act

 

 

10100SB0690ham003- 290 -LRB101 04451 SMS 61572 a

194-804) and beginning on the effective date of this amendatory
2Act of the 95th General Assembly, unless any organization
3licensee under the Illinois Horse Racing Act of 1975 begins to
4operate a slot machine or video game of chance under the
5Illinois Horse Racing Act of 1975 or this Act, after the
6payments required under subsections (b) and (c) have been made,
7an amount equal to 15% of the adjusted gross receipts of (1) an
8owners licensee that relocates pursuant to Section 11.2, (2) an
9owners licensee conducting riverboat gambling operations
10pursuant to an owners license that is initially issued after
11June 25, 1999, or (3) the first riverboat gambling operations
12conducted by a licensed manager on behalf of the State under
13Section 7.3, whichever comes first, shall be paid from the
14State Gaming Fund into the Horse Racing Equity Fund.
15    (c-10) Each year the General Assembly shall appropriate
16from the General Revenue Fund to the Education Assistance Fund
17an amount equal to the amount paid into the Horse Racing Equity
18Fund pursuant to subsection (c-5) in the prior calendar year.
19    (c-15) After the payments required under subsections (b),
20(c), and (c-5) have been made, an amount equal to 2% of the
21adjusted gross receipts of (1) an owners licensee that
22relocates pursuant to Section 11.2, (2) an owners licensee
23conducting riverboat gambling operations pursuant to an owners
24license that is initially issued after June 25, 1999, or (3)
25the first riverboat gambling operations conducted by a licensed
26manager on behalf of the State under Section 7.3, whichever

 

 

10100SB0690ham003- 291 -LRB101 04451 SMS 61572 a

1comes first, shall be paid, subject to appropriation from the
2General Assembly, from the State Gaming Fund to each home rule
3county with a population of over 3,000,000 inhabitants for the
4purpose of enhancing the county's criminal justice system.
5    (c-20) Each year the General Assembly shall appropriate
6from the General Revenue Fund to the Education Assistance Fund
7an amount equal to the amount paid to each home rule county
8with a population of over 3,000,000 inhabitants pursuant to
9subsection (c-15) in the prior calendar year.
10    (c-25) On July 1, 2013 and each July 1 thereafter,
11$1,600,000 shall be transferred from the State Gaming Fund to
12the Chicago State University Education Improvement Fund.
13    (c-30) On July 1, 2013 or as soon as possible thereafter,
14$92,000,000 shall be transferred from the State Gaming Fund to
15the School Infrastructure Fund and $23,000,000 shall be
16transferred from the State Gaming Fund to the Horse Racing
17Equity Fund.
18    (c-35) Beginning on July 1, 2013, in addition to any amount
19transferred under subsection (c-30) of this Section,
20$5,530,000 shall be transferred monthly from the State Gaming
21Fund to the School Infrastructure Fund.
22    (d) From time to time, the Board shall transfer the
23remainder of the funds generated by this Act into the Education
24Assistance Fund, created by Public Act 86-0018, of the State of
25Illinois.
26    (e) Nothing in this Act shall prohibit the unit of local

 

 

10100SB0690ham003- 292 -LRB101 04451 SMS 61572 a

1government designated as the home dock of the riverboat from
2entering into agreements with other units of local government
3in this State or in other states to share its portion of the
4tax revenue.
5    (f) To the extent practicable, the Board shall administer
6and collect the wagering taxes imposed by this Section in a
7manner consistent with the provisions of Sections 4, 5, 5a, 5b,
85c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
9Retailers' Occupation Tax Act and Section 3-7 of the Uniform
10Penalty and Interest Act.
11(Source: P.A. 98-18, eff. 6-7-13.)
 
12    Section 25-915. The Criminal Code of 2012 is amended by
13changing Sections 28-1, 28-3, and 28-5 as follows:
 
14    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
15    Sec. 28-1. Gambling.
16    (a) A person commits gambling when he or she:
17        (1) knowingly plays a game of chance or skill for money
18    or other thing of value, unless excepted in subsection (b)
19    of this Section;
20        (2) knowingly makes a wager upon the result of any
21    game, contest, or any political nomination, appointment or
22    election;
23        (3) knowingly operates, keeps, owns, uses, purchases,
24    exhibits, rents, sells, bargains for the sale or lease of,

 

 

10100SB0690ham003- 293 -LRB101 04451 SMS 61572 a

1    manufactures or distributes any gambling device;
2        (4) contracts to have or give himself or herself or
3    another the option to buy or sell, or contracts to buy or
4    sell, at a future time, any grain or other commodity
5    whatsoever, or any stock or security of any company, where
6    it is at the time of making such contract intended by both
7    parties thereto that the contract to buy or sell, or the
8    option, whenever exercised, or the contract resulting
9    therefrom, shall be settled, not by the receipt or delivery
10    of such property, but by the payment only of differences in
11    prices thereof; however, the issuance, purchase, sale,
12    exercise, endorsement or guarantee, by or through a person
13    registered with the Secretary of State pursuant to Section
14    8 of the Illinois Securities Law of 1953, or by or through
15    a person exempt from such registration under said Section
16    8, of a put, call, or other option to buy or sell
17    securities which have been registered with the Secretary of
18    State or which are exempt from such registration under
19    Section 3 of the Illinois Securities Law of 1953 is not
20    gambling within the meaning of this paragraph (4);
21        (5) knowingly owns or possesses any book, instrument or
22    apparatus by means of which bets or wagers have been, or
23    are, recorded or registered, or knowingly possesses any
24    money which he has received in the course of a bet or
25    wager;
26        (6) knowingly sells pools upon the result of any game

 

 

10100SB0690ham003- 294 -LRB101 04451 SMS 61572 a

1    or contest of skill or chance, political nomination,
2    appointment or election;
3        (7) knowingly sets up or promotes any lottery or sells,
4    offers to sell or transfers any ticket or share for any
5    lottery;
6        (8) knowingly sets up or promotes any policy game or
7    sells, offers to sell or knowingly possesses or transfers
8    any policy ticket, slip, record, document or other similar
9    device;
10        (9) knowingly drafts, prints or publishes any lottery
11    ticket or share, or any policy ticket, slip, record,
12    document or similar device, except for such activity
13    related to lotteries, bingo games and raffles authorized by
14    and conducted in accordance with the laws of Illinois or
15    any other state or foreign government;
16        (10) knowingly advertises any lottery or policy game,
17    except for such activity related to lotteries, bingo games
18    and raffles authorized by and conducted in accordance with
19    the laws of Illinois or any other state;
20        (11) knowingly transmits information as to wagers,
21    betting odds, or changes in betting odds by telephone,
22    telegraph, radio, semaphore or similar means; or knowingly
23    installs or maintains equipment for the transmission or
24    receipt of such information; except that nothing in this
25    subdivision (11) prohibits transmission or receipt of such
26    information for use in news reporting of sporting events or

 

 

10100SB0690ham003- 295 -LRB101 04451 SMS 61572 a

1    contests; or
2        (12) knowingly establishes, maintains, or operates an
3    Internet site that permits a person to play a game of
4    chance or skill for money or other thing of value by means
5    of the Internet or to make a wager upon the result of any
6    game, contest, political nomination, appointment, or
7    election by means of the Internet. This item (12) does not
8    apply to activities referenced in items (6), and (6.1), and
9    (15) of subsection (b) of this Section.
10    (b) Participants in any of the following activities shall
11not be convicted of gambling:
12        (1) Agreements to compensate for loss caused by the
13    happening of chance including without limitation contracts
14    of indemnity or guaranty and life or health or accident
15    insurance.
16        (2) Offers of prizes, award or compensation to the
17    actual contestants in any bona fide contest for the
18    determination of skill, speed, strength or endurance or to
19    the owners of animals or vehicles entered in such contest.
20        (3) Pari-mutuel betting as authorized by the law of
21    this State.
22        (4) Manufacture of gambling devices, including the
23    acquisition of essential parts therefor and the assembly
24    thereof, for transportation in interstate or foreign
25    commerce to any place outside this State when such
26    transportation is not prohibited by any applicable Federal

 

 

10100SB0690ham003- 296 -LRB101 04451 SMS 61572 a

1    law; or the manufacture, distribution, or possession of
2    video gaming terminals, as defined in the Video Gaming Act,
3    by manufacturers, distributors, and terminal operators
4    licensed to do so under the Video Gaming Act.
5        (5) The game commonly known as "bingo", when conducted
6    in accordance with the Bingo License and Tax Act.
7        (6) Lotteries when conducted by the State of Illinois
8    in accordance with the Illinois Lottery Law. This exemption
9    includes any activity conducted by the Department of
10    Revenue to sell lottery tickets pursuant to the provisions
11    of the Illinois Lottery Law and its rules.
12        (6.1) The purchase of lottery tickets through the
13    Internet for a lottery conducted by the State of Illinois
14    under the program established in Section 7.12 of the
15    Illinois Lottery Law.
16        (7) Possession of an antique slot machine that is
17    neither used nor intended to be used in the operation or
18    promotion of any unlawful gambling activity or enterprise.
19    For the purpose of this subparagraph (b)(7), an antique
20    slot machine is one manufactured 25 years ago or earlier.
21        (8) Raffles and poker runs when conducted in accordance
22    with the Raffles and Poker Runs Act.
23        (9) Charitable games when conducted in accordance with
24    the Charitable Games Act.
25        (10) Pull tabs and jar games when conducted under the
26    Illinois Pull Tabs and Jar Games Act.

 

 

10100SB0690ham003- 297 -LRB101 04451 SMS 61572 a

1        (11) Gambling games conducted on riverboats when
2    authorized by the Riverboat Gambling Act.
3        (12) Video gaming terminal games at a licensed
4    establishment, licensed truck stop establishment, licensed
5    fraternal establishment, or licensed veterans
6    establishment when conducted in accordance with the Video
7    Gaming Act.
8        (13) Games of skill or chance where money or other
9    things of value can be won but no payment or purchase is
10    required to participate.
11        (14) Savings promotion raffles authorized under
12    Section 5g of the Illinois Banking Act, Section 7008 of the
13    Savings Bank Act, Section 42.7 of the Illinois Credit Union
14    Act, Section 5136B of the National Bank Act (12 U.S.C.
15    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
16    1463).
17        (15) Sports wagering when conducted in accordance with
18    the Sports Wagering Act.
19    (c) Sentence.
20    Gambling is a Class A misdemeanor. A second or subsequent
21conviction under subsections (a)(3) through (a)(12), is a Class
224 felony.
23    (d) Circumstantial evidence.
24    In prosecutions under this Section circumstantial evidence
25shall have the same validity and weight as in any criminal
26prosecution.

 

 

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1(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
2    (720 ILCS 5/28-3)   (from Ch. 38, par. 28-3)
3    Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
4any real estate, vehicle, boat or any other property whatsoever
5used for the purposes of gambling other than gambling conducted
6in the manner authorized by the Riverboat Gambling Act, the
7Sports Wagering Act, or the Video Gaming Act. Any person who
8knowingly permits any premises or property owned or occupied by
9him or under his control to be used as a gambling place commits
10a Class A misdemeanor. Each subsequent offense is a Class 4
11felony. When any premises is determined by the circuit court to
12be a gambling place:
13    (a) Such premises is a public nuisance and may be proceeded
14against as such, and
15    (b) All licenses, permits or certificates issued by the
16State of Illinois or any subdivision or public agency thereof
17authorizing the serving of food or liquor on such premises
18shall be void; and no license, permit or certificate so
19cancelled shall be reissued for such premises for a period of
2060 days thereafter; nor shall any person convicted of keeping a
21gambling place be reissued such license for one year from his
22conviction and, after a second conviction of keeping a gambling
23place, any such person shall not be reissued such license, and
24    (c) Such premises of any person who knowingly permits
25thereon a violation of any Section of this Article shall be

 

 

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1held liable for, and may be sold to pay any unsatisfied
2judgment that may be recovered and any unsatisfied fine that
3may be levied under any Section of this Article.
4(Source: P.A. 96-34, eff. 7-13-09.)
 
5    (720 ILCS 5/28-5)  (from Ch. 38, par. 28-5)
6    Sec. 28-5. Seizure of gambling devices and gambling funds.
7    (a) Every device designed for gambling which is incapable
8of lawful use or every device used unlawfully for gambling
9shall be considered a "gambling device", and shall be subject
10to seizure, confiscation and destruction by the Department of
11State Police or by any municipal, or other local authority,
12within whose jurisdiction the same may be found. As used in
13this Section, a "gambling device" includes any slot machine,
14and includes any machine or device constructed for the
15reception of money or other thing of value and so constructed
16as to return, or to cause someone to return, on chance to the
17player thereof money, property or a right to receive money or
18property. With the exception of any device designed for
19gambling which is incapable of lawful use, no gambling device
20shall be forfeited or destroyed unless an individual with a
21property interest in said device knows of the unlawful use of
22the device.
23    (b) Every gambling device shall be seized and forfeited to
24the county wherein such seizure occurs. Any money or other
25thing of value integrally related to acts of gambling shall be

 

 

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1seized and forfeited to the county wherein such seizure occurs.
2    (c) If, within 60 days after any seizure pursuant to
3subparagraph (b) of this Section, a person having any property
4interest in the seized property is charged with an offense, the
5court which renders judgment upon such charge shall, within 30
6days after such judgment, conduct a forfeiture hearing to
7determine whether such property was a gambling device at the
8time of seizure. Such hearing shall be commenced by a written
9petition by the State, including material allegations of fact,
10the name and address of every person determined by the State to
11have any property interest in the seized property, a
12representation that written notice of the date, time and place
13of such hearing has been mailed to every such person by
14certified mail at least 10 days before such date, and a request
15for forfeiture. Every such person may appear as a party and
16present evidence at such hearing. The quantum of proof required
17shall be a preponderance of the evidence, and the burden of
18proof shall be on the State. If the court determines that the
19seized property was a gambling device at the time of seizure,
20an order of forfeiture and disposition of the seized property
21shall be entered: a gambling device shall be received by the
22State's Attorney, who shall effect its destruction, except that
23valuable parts thereof may be liquidated and the resultant
24money shall be deposited in the general fund of the county
25wherein such seizure occurred; money and other things of value
26shall be received by the State's Attorney and, upon

 

 

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1liquidation, shall be deposited in the general fund of the
2county wherein such seizure occurred. However, in the event
3that a defendant raises the defense that the seized slot
4machine is an antique slot machine described in subparagraph
5(b) (7) of Section 28-1 of this Code and therefore he is exempt
6from the charge of a gambling activity participant, the seized
7antique slot machine shall not be destroyed or otherwise
8altered until a final determination is made by the Court as to
9whether it is such an antique slot machine. Upon a final
10determination by the Court of this question in favor of the
11defendant, such slot machine shall be immediately returned to
12the defendant. Such order of forfeiture and disposition shall,
13for the purposes of appeal, be a final order and judgment in a
14civil proceeding.
15    (d) If a seizure pursuant to subparagraph (b) of this
16Section is not followed by a charge pursuant to subparagraph
17(c) of this Section, or if the prosecution of such charge is
18permanently terminated or indefinitely discontinued without
19any judgment of conviction or acquittal (1) the State's
20Attorney shall commence an in rem proceeding for the forfeiture
21and destruction of a gambling device, or for the forfeiture and
22deposit in the general fund of the county of any seized money
23or other things of value, or both, in the circuit court and (2)
24any person having any property interest in such seized gambling
25device, money or other thing of value may commence separate
26civil proceedings in the manner provided by law.

 

 

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1    (e) Any gambling device displayed for sale to a riverboat
2gambling operation or used to train occupational licensees of a
3riverboat gambling operation as authorized under the Riverboat
4Gambling Act is exempt from seizure under this Section.
5    (f) Any gambling equipment, devices and supplies provided
6by a licensed supplier in accordance with the Riverboat
7Gambling Act which are removed from the riverboat for repair
8are exempt from seizure under this Section.
9    (g) The following video gaming terminals are exempt from
10seizure under this Section:
11        (1) Video gaming terminals for sale to a licensed
12    distributor or operator under the Video Gaming Act.
13        (2) Video gaming terminals used to train licensed
14    technicians or licensed terminal handlers.
15        (3) Video gaming terminals that are removed from a
16    licensed establishment, licensed truck stop establishment,
17    licensed fraternal establishment, or licensed veterans
18    establishment for repair.
19    (h) Property seized or forfeited under this Section is
20subject to reporting under the Seizure and Forfeiture Reporting
21Act.
22    (i) Any sports lottery terminals provided by a central
23system provider that are removed from a lottery retailer for
24repair under the Sports Wagering Act are exempt from seizure
25under this Section.
26(Source: P.A. 100-512, eff. 7-1-18.)
 

 

 

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1
Article 30. State Fair Gaming Act

 
2    Section 30-1. Short title. This Article may be cited as the
3State Fair Gaming Act. References in this Article to "this Act"
4mean this Article.
 
5    Section 30-5. Definitions. As used in this Act:
6    "Board" means the Illinois Gaming Board.
7    "State Fair" has the meaning given to that term in the
8State Fair Act.
 
9    Section 30-10. Gambling at the State Fair.
10    (a) The Board shall issue a licensed establishment license
11as provided under Section 25 of the Video Gaming Act to a
12concessioner who will operate at the Illinois State Fairgrounds
13and at the DuQuoin State Fairgrounds. The concessioner shall be
14chosen under the Illinois Procurement Code for an operational
15period not to exceed 3 years. At the conclusion of each 3-year
16cycle, the Illinois Procurement Code shall be used to determine
17the new concessioner.
18    (b) Moneys bid by the concessioner shall be deposited into
19the State Fairgrounds Capital Improvements and Harness Racing
20Fund.
 
21    Section 30-15. Video gaming at the State Fair.

 

 

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1    (a) The concessioner issued a licensed establishment
2license under Section 30-10 may operate: (1) up to 50 video
3gaming terminals as provided in the Video Gaming Act during the
4scheduled dates of the Illinois State Fair; and (2) up to 30
5video gaming terminals as provided in the Video Gaming Act
6during the scheduled dates of the DuQuoin State Fair.
7    (b) No more than 10 video gaming terminals may be placed in
8any temporary pavilion where alcoholic beverages are served at
9either State Fair.
 
10    Section 30-20. Revenue.
11    (a) Notwithstanding any other law to the contrary, a tax is
12imposed at the rate of 35% of net terminal income received from
13video gaming under this Act, which shall be remitted to the
14Board and deposited into the State Fairgrounds Capital
15Improvements and Harness Racing Fund.
16    (b) There is created within the State treasury the State
17Fairgrounds Capital Improvements and Harness Racing Fund. The
18Department of Agriculture shall use moneys in the State
19Fairgrounds Capital Improvements and Harness Racing Fund as
20follows and in the order of priority:
21        (1) to provide support for a harness race meeting
22    produced by an organization licensee under the Illinois
23    Horse Racing Act of 1975 and which shall consist of up to
24    30 days of live racing per year at the Illinois State
25    Fairgrounds in Springfield;

 

 

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1        (2) to repair and rehabilitate fairgrounds'
2    backstretch facilities to such a level as determined by the
3    Department of Agriculture to be required to carry out a
4    program of live harness racing; and
5        (3) for the overall repair and rehabilitation of the
6    capital infrastructure of: (i) the Illinois State
7    Fairgrounds in Springfield, and (ii) the DuQuoin State
8    Fairgrounds in DuQuoin, and for no other purpose.
9    Notwithstanding any other law to the contrary, the entire
10State share of tax revenues from the race meetings under
11paragraph (1) of this subsection (c) shall be reinvested into
12the State Fairgrounds Capital Improvements and Harness Racing
13Fund.
 
14    Section 30-25. Rules. The Board and the Department of
15Agriculture may adopt rules for the implementation of this Act.
 
16    Section 30-900. The State Finance Act is amended by adding
17Section 5.897 as follows:
 
18    (30 ILCS 105/5.897 new)
19    Sec. 5.897. The State Fairgrounds Capital Improvements and
20Harness Racing Fund.
 
21
Article 35. Amendatory Provisions

 

 

 

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1    Section 35-3. The Illinois Administrative Procedure Act is
2amended by changing Section 5-45 as follows:
 
3    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
4    Sec. 5-45. Emergency rulemaking.
5    (a) "Emergency" means the existence of any situation that
6any agency finds reasonably constitutes a threat to the public
7interest, safety, or welfare.
8    (b) If any agency finds that an emergency exists that
9requires adoption of a rule upon fewer days than is required by
10Section 5-40 and states in writing its reasons for that
11finding, the agency may adopt an emergency rule without prior
12notice or hearing upon filing a notice of emergency rulemaking
13with the Secretary of State under Section 5-70. The notice
14shall include the text of the emergency rule and shall be
15published in the Illinois Register. Consent orders or other
16court orders adopting settlements negotiated by an agency may
17be adopted under this Section. Subject to applicable
18constitutional or statutory provisions, an emergency rule
19becomes effective immediately upon filing under Section 5-65 or
20at a stated date less than 10 days thereafter. The agency's
21finding and a statement of the specific reasons for the finding
22shall be filed with the rule. The agency shall take reasonable
23and appropriate measures to make emergency rules known to the
24persons who may be affected by them.
25    (c) An emergency rule may be effective for a period of not

 

 

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1longer than 150 days, but the agency's authority to adopt an
2identical rule under Section 5-40 is not precluded. No
3emergency rule may be adopted more than once in any 24-month
4period, except that this limitation on the number of emergency
5rules that may be adopted in a 24-month period does not apply
6to (i) emergency rules that make additions to and deletions
7from the Drug Manual under Section 5-5.16 of the Illinois
8Public Aid Code or the generic drug formulary under Section
93.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
10emergency rules adopted by the Pollution Control Board before
11July 1, 1997 to implement portions of the Livestock Management
12Facilities Act, (iii) emergency rules adopted by the Illinois
13Department of Public Health under subsections (a) through (i)
14of Section 2 of the Department of Public Health Act when
15necessary to protect the public's health, (iv) emergency rules
16adopted pursuant to subsection (n) of this Section, (v)
17emergency rules adopted pursuant to subsection (o) of this
18Section, or (vi) emergency rules adopted pursuant to subsection
19(c-5) of this Section. Two or more emergency rules having
20substantially the same purpose and effect shall be deemed to be
21a single rule for purposes of this Section.
22    (c-5) To facilitate the maintenance of the program of group
23health benefits provided to annuitants, survivors, and retired
24employees under the State Employees Group Insurance Act of
251971, rules to alter the contributions to be paid by the State,
26annuitants, survivors, retired employees, or any combination

 

 

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1of those entities, for that program of group health benefits,
2shall be adopted as emergency rules. The adoption of those
3rules shall be considered an emergency and necessary for the
4public interest, safety, and welfare.
5    (d) In order to provide for the expeditious and timely
6implementation of the State's fiscal year 1999 budget,
7emergency rules to implement any provision of Public Act 90-587
8or 90-588 or any other budget initiative for fiscal year 1999
9may be adopted in accordance with this Section by the agency
10charged with administering that provision or initiative,
11except that the 24-month limitation on the adoption of
12emergency rules and the provisions of Sections 5-115 and 5-125
13do not apply to rules adopted under this subsection (d). The
14adoption of emergency rules authorized by this subsection (d)
15shall be deemed to be necessary for the public interest,
16safety, and welfare.
17    (e) In order to provide for the expeditious and timely
18implementation of the State's fiscal year 2000 budget,
19emergency rules to implement any provision of Public Act 91-24
20or any other budget initiative for fiscal year 2000 may be
21adopted in accordance with this Section by the agency charged
22with administering that provision or initiative, except that
23the 24-month limitation on the adoption of emergency rules and
24the provisions of Sections 5-115 and 5-125 do not apply to
25rules adopted under this subsection (e). The adoption of
26emergency rules authorized by this subsection (e) shall be

 

 

10100SB0690ham003- 309 -LRB101 04451 SMS 61572 a

1deemed to be necessary for the public interest, safety, and
2welfare.
3    (f) In order to provide for the expeditious and timely
4implementation of the State's fiscal year 2001 budget,
5emergency rules to implement any provision of Public Act 91-712
6or any other budget initiative for fiscal year 2001 may be
7adopted in accordance with this Section by the agency charged
8with administering that provision or initiative, except that
9the 24-month limitation on the adoption of emergency rules and
10the provisions of Sections 5-115 and 5-125 do not apply to
11rules adopted under this subsection (f). The adoption of
12emergency rules authorized by this subsection (f) shall be
13deemed to be necessary for the public interest, safety, and
14welfare.
15    (g) In order to provide for the expeditious and timely
16implementation of the State's fiscal year 2002 budget,
17emergency rules to implement any provision of Public Act 92-10
18or any other budget initiative for fiscal year 2002 may be
19adopted in accordance with this Section by the agency charged
20with administering that provision or initiative, except that
21the 24-month limitation on the adoption of emergency rules and
22the provisions of Sections 5-115 and 5-125 do not apply to
23rules adopted under this subsection (g). The adoption of
24emergency rules authorized by this subsection (g) shall be
25deemed to be necessary for the public interest, safety, and
26welfare.

 

 

10100SB0690ham003- 310 -LRB101 04451 SMS 61572 a

1    (h) In order to provide for the expeditious and timely
2implementation of the State's fiscal year 2003 budget,
3emergency rules to implement any provision of Public Act 92-597
4or any other budget initiative for fiscal year 2003 may be
5adopted in accordance with this Section by the agency charged
6with administering that provision or initiative, except that
7the 24-month limitation on the adoption of emergency rules and
8the provisions of Sections 5-115 and 5-125 do not apply to
9rules adopted under this subsection (h). The adoption of
10emergency rules authorized by this subsection (h) shall be
11deemed to be necessary for the public interest, safety, and
12welfare.
13    (i) In order to provide for the expeditious and timely
14implementation of the State's fiscal year 2004 budget,
15emergency rules to implement any provision of Public Act 93-20
16or any other budget initiative for fiscal year 2004 may be
17adopted in accordance with this Section by the agency charged
18with administering that provision or initiative, except that
19the 24-month limitation on the adoption of emergency rules and
20the provisions of Sections 5-115 and 5-125 do not apply to
21rules adopted under this subsection (i). The adoption of
22emergency rules authorized by this subsection (i) shall be
23deemed to be necessary for the public interest, safety, and
24welfare.
25    (j) In order to provide for the expeditious and timely
26implementation of the provisions of the State's fiscal year

 

 

10100SB0690ham003- 311 -LRB101 04451 SMS 61572 a

12005 budget as provided under the Fiscal Year 2005 Budget
2Implementation (Human Services) Act, emergency rules to
3implement any provision of the Fiscal Year 2005 Budget
4Implementation (Human Services) Act may be adopted in
5accordance with this Section by the agency charged with
6administering that provision, except that the 24-month
7limitation on the adoption of emergency rules and the
8provisions of Sections 5-115 and 5-125 do not apply to rules
9adopted under this subsection (j). The Department of Public Aid
10may also adopt rules under this subsection (j) necessary to
11administer the Illinois Public Aid Code and the Children's
12Health Insurance Program Act. The adoption of emergency rules
13authorized by this subsection (j) shall be deemed to be
14necessary for the public interest, safety, and welfare.
15    (k) In order to provide for the expeditious and timely
16implementation of the provisions of the State's fiscal year
172006 budget, emergency rules to implement any provision of
18Public Act 94-48 or any other budget initiative for fiscal year
192006 may be adopted in accordance with this Section by the
20agency charged with administering that provision or
21initiative, except that the 24-month limitation on the adoption
22of emergency rules and the provisions of Sections 5-115 and
235-125 do not apply to rules adopted under this subsection (k).
24The Department of Healthcare and Family Services may also adopt
25rules under this subsection (k) necessary to administer the
26Illinois Public Aid Code, the Senior Citizens and Persons with

 

 

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1Disabilities Property Tax Relief Act, the Senior Citizens and
2Disabled Persons Prescription Drug Discount Program Act (now
3the Illinois Prescription Drug Discount Program Act), and the
4Children's Health Insurance Program Act. The adoption of
5emergency rules authorized by this subsection (k) shall be
6deemed to be necessary for the public interest, safety, and
7welfare.
8    (l) In order to provide for the expeditious and timely
9implementation of the provisions of the State's fiscal year
102007 budget, the Department of Healthcare and Family Services
11may adopt emergency rules during fiscal year 2007, including
12rules effective July 1, 2007, in accordance with this
13subsection to the extent necessary to administer the
14Department's responsibilities with respect to amendments to
15the State plans and Illinois waivers approved by the federal
16Centers for Medicare and Medicaid Services necessitated by the
17requirements of Title XIX and Title XXI of the federal Social
18Security Act. The adoption of emergency rules authorized by
19this subsection (l) shall be deemed to be necessary for the
20public interest, safety, and welfare.
21    (m) In order to provide for the expeditious and timely
22implementation of the provisions of the State's fiscal year
232008 budget, the Department of Healthcare and Family Services
24may adopt emergency rules during fiscal year 2008, including
25rules effective July 1, 2008, in accordance with this
26subsection to the extent necessary to administer the

 

 

10100SB0690ham003- 313 -LRB101 04451 SMS 61572 a

1Department's responsibilities with respect to amendments to
2the State plans and Illinois waivers approved by the federal
3Centers for Medicare and Medicaid Services necessitated by the
4requirements of Title XIX and Title XXI of the federal Social
5Security Act. The adoption of emergency rules authorized by
6this subsection (m) shall be deemed to be necessary for the
7public interest, safety, and welfare.
8    (n) In order to provide for the expeditious and timely
9implementation of the provisions of the State's fiscal year
102010 budget, emergency rules to implement any provision of
11Public Act 96-45 or any other budget initiative authorized by
12the 96th General Assembly for fiscal year 2010 may be adopted
13in accordance with this Section by the agency charged with
14administering that provision or initiative. The adoption of
15emergency rules authorized by this subsection (n) shall be
16deemed to be necessary for the public interest, safety, and
17welfare. The rulemaking authority granted in this subsection
18(n) shall apply only to rules promulgated during Fiscal Year
192010.
20    (o) In order to provide for the expeditious and timely
21implementation of the provisions of the State's fiscal year
222011 budget, emergency rules to implement any provision of
23Public Act 96-958 or any other budget initiative authorized by
24the 96th General Assembly for fiscal year 2011 may be adopted
25in accordance with this Section by the agency charged with
26administering that provision or initiative. The adoption of

 

 

10100SB0690ham003- 314 -LRB101 04451 SMS 61572 a

1emergency rules authorized by this subsection (o) is deemed to
2be necessary for the public interest, safety, and welfare. The
3rulemaking authority granted in this subsection (o) applies
4only to rules promulgated on or after July 1, 2010 (the
5effective date of Public Act 96-958) through June 30, 2011.
6    (p) In order to provide for the expeditious and timely
7implementation of the provisions of Public Act 97-689,
8emergency rules to implement any provision of Public Act 97-689
9may be adopted in accordance with this subsection (p) by the
10agency charged with administering that provision or
11initiative. The 150-day limitation of the effective period of
12emergency rules does not apply to rules adopted under this
13subsection (p), and the effective period may continue through
14June 30, 2013. The 24-month limitation on the adoption of
15emergency rules does not apply to rules adopted under this
16subsection (p). The adoption of emergency rules authorized by
17this subsection (p) is deemed to be necessary for the public
18interest, safety, and welfare.
19    (q) In order to provide for the expeditious and timely
20implementation of the provisions of Articles 7, 8, 9, 11, and
2112 of Public Act 98-104, emergency rules to implement any
22provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
23may be adopted in accordance with this subsection (q) by the
24agency charged with administering that provision or
25initiative. The 24-month limitation on the adoption of
26emergency rules does not apply to rules adopted under this

 

 

10100SB0690ham003- 315 -LRB101 04451 SMS 61572 a

1subsection (q). The adoption of emergency rules authorized by
2this subsection (q) is deemed to be necessary for the public
3interest, safety, and welfare.
4    (r) In order to provide for the expeditious and timely
5implementation of the provisions of Public Act 98-651,
6emergency rules to implement Public Act 98-651 may be adopted
7in accordance with this subsection (r) by the Department of
8Healthcare and Family Services. The 24-month limitation on the
9adoption of emergency rules does not apply to rules adopted
10under this subsection (r). The adoption of emergency rules
11authorized by this subsection (r) is deemed to be necessary for
12the public interest, safety, and welfare.
13    (s) In order to provide for the expeditious and timely
14implementation of the provisions of Sections 5-5b.1 and 5A-2 of
15the Illinois Public Aid Code, emergency rules to implement any
16provision of Section 5-5b.1 or Section 5A-2 of the Illinois
17Public Aid Code may be adopted in accordance with this
18subsection (s) by the Department of Healthcare and Family
19Services. The rulemaking authority granted in this subsection
20(s) shall apply only to those rules adopted prior to July 1,
212015. Notwithstanding any other provision of this Section, any
22emergency rule adopted under this subsection (s) shall only
23apply to payments made for State fiscal year 2015. The adoption
24of emergency rules authorized by this subsection (s) is deemed
25to be necessary for the public interest, safety, and welfare.
26    (t) In order to provide for the expeditious and timely

 

 

10100SB0690ham003- 316 -LRB101 04451 SMS 61572 a

1implementation of the provisions of Article II of Public Act
299-6, emergency rules to implement the changes made by Article
3II of Public Act 99-6 to the Emergency Telephone System Act may
4be adopted in accordance with this subsection (t) by the
5Department of State Police. The rulemaking authority granted in
6this subsection (t) shall apply only to those rules adopted
7prior to July 1, 2016. The 24-month limitation on the adoption
8of emergency rules does not apply to rules adopted under this
9subsection (t). The adoption of emergency rules authorized by
10this subsection (t) is deemed to be necessary for the public
11interest, safety, and welfare.
12    (u) In order to provide for the expeditious and timely
13implementation of the provisions of the Burn Victims Relief
14Act, emergency rules to implement any provision of the Act may
15be adopted in accordance with this subsection (u) by the
16Department of Insurance. The rulemaking authority granted in
17this subsection (u) shall apply only to those rules adopted
18prior to December 31, 2015. The adoption of emergency rules
19authorized by this subsection (u) is deemed to be necessary for
20the public interest, safety, and welfare.
21    (v) In order to provide for the expeditious and timely
22implementation of the provisions of Public Act 99-516,
23emergency rules to implement Public Act 99-516 may be adopted
24in accordance with this subsection (v) by the Department of
25Healthcare and Family Services. The 24-month limitation on the
26adoption of emergency rules does not apply to rules adopted

 

 

10100SB0690ham003- 317 -LRB101 04451 SMS 61572 a

1under this subsection (v). The adoption of emergency rules
2authorized by this subsection (v) is deemed to be necessary for
3the public interest, safety, and welfare.
4    (w) In order to provide for the expeditious and timely
5implementation of the provisions of Public Act 99-796,
6emergency rules to implement the changes made by Public Act
799-796 may be adopted in accordance with this subsection (w) by
8the Adjutant General. The adoption of emergency rules
9authorized by this subsection (w) is deemed to be necessary for
10the public interest, safety, and welfare.
11    (x) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 99-906,
13emergency rules to implement subsection (i) of Section 16-115D,
14subsection (g) of Section 16-128A, and subsection (a) of
15Section 16-128B of the Public Utilities Act may be adopted in
16accordance with this subsection (x) by the Illinois Commerce
17Commission. The rulemaking authority granted in this
18subsection (x) shall apply only to those rules adopted within
19180 days after June 1, 2017 (the effective date of Public Act
2099-906). The adoption of emergency rules authorized by this
21subsection (x) is deemed to be necessary for the public
22interest, safety, and welfare.
23    (y) In order to provide for the expeditious and timely
24implementation of the provisions of Public Act 100-23,
25emergency rules to implement the changes made by Public Act
26100-23 to Section 4.02 of the Illinois Act on the Aging,

 

 

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1Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
2Section 55-30 of the Alcoholism and Other Drug Abuse and
3Dependency Act, and Sections 74 and 75 of the Mental Health and
4Developmental Disabilities Administrative Act may be adopted
5in accordance with this subsection (y) by the respective
6Department. The adoption of emergency rules authorized by this
7subsection (y) is deemed to be necessary for the public
8interest, safety, and welfare.
9    (z) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 100-554,
11emergency rules to implement the changes made by Public Act
12100-554 to Section 4.7 of the Lobbyist Registration Act may be
13adopted in accordance with this subsection (z) by the Secretary
14of State. The adoption of emergency rules authorized by this
15subsection (z) is deemed to be necessary for the public
16interest, safety, and welfare.
17    (aa) In order to provide for the expeditious and timely
18initial implementation of the changes made to Articles 5, 5A,
1912, and 14 of the Illinois Public Aid Code under the provisions
20of Public Act 100-581, the Department of Healthcare and Family
21Services may adopt emergency rules in accordance with this
22subsection (aa). The 24-month limitation on the adoption of
23emergency rules does not apply to rules to initially implement
24the changes made to Articles 5, 5A, 12, and 14 of the Illinois
25Public Aid Code adopted under this subsection (aa). The
26adoption of emergency rules authorized by this subsection (aa)

 

 

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1is deemed to be necessary for the public interest, safety, and
2welfare.
3    (bb) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 100-587,
5emergency rules to implement the changes made by Public Act
6100-587 to Section 4.02 of the Illinois Act on the Aging,
7Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
8subsection (b) of Section 55-30 of the Alcoholism and Other
9Drug Abuse and Dependency Act, Section 5-104 of the Specialized
10Mental Health Rehabilitation Act of 2013, and Section 75 and
11subsection (b) of Section 74 of the Mental Health and
12Developmental Disabilities Administrative Act may be adopted
13in accordance with this subsection (bb) by the respective
14Department. The adoption of emergency rules authorized by this
15subsection (bb) is deemed to be necessary for the public
16interest, safety, and welfare.
17    (cc) In order to provide for the expeditious and timely
18implementation of the provisions of Public Act 100-587,
19emergency rules may be adopted in accordance with this
20subsection (cc) to implement the changes made by Public Act
21100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
22Pension Code by the Board created under Article 14 of the Code;
23Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
24the Board created under Article 15 of the Code; and Sections
2516-190.5 and 16-190.6 of the Illinois Pension Code by the Board
26created under Article 16 of the Code. The adoption of emergency

 

 

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1rules authorized by this subsection (cc) is deemed to be
2necessary for the public interest, safety, and welfare.
3    (dd) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 100-864,
5emergency rules to implement the changes made by Public Act
6100-864 to Section 3.35 of the Newborn Metabolic Screening Act
7may be adopted in accordance with this subsection (dd) by the
8Secretary of State. The adoption of emergency rules authorized
9by this subsection (dd) is deemed to be necessary for the
10public interest, safety, and welfare.
11    (ee) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 100-1172 this
13amendatory Act of the 100th General Assembly, emergency rules
14implementing the Illinois Underground Natural Gas Storage
15Safety Act may be adopted in accordance with this subsection by
16the Department of Natural Resources. The adoption of emergency
17rules authorized by this subsection is deemed to be necessary
18for the public interest, safety, and welfare.
19    (ff) (ee) In order to provide for the expeditious and
20timely initial implementation of the changes made to Articles
215A and 14 of the Illinois Public Aid Code under the provisions
22of Public Act 100-1181 this amendatory Act of the 100th General
23Assembly, the Department of Healthcare and Family Services may
24on a one-time-only basis adopt emergency rules in accordance
25with this subsection (ff) (ee). The 24-month limitation on the
26adoption of emergency rules does not apply to rules to

 

 

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1initially implement the changes made to Articles 5A and 14 of
2the Illinois Public Aid Code adopted under this subsection (ff)
3(ee). The adoption of emergency rules authorized by this
4subsection (ff) (ee) is deemed to be necessary for the public
5interest, safety, and welfare.
6    (gg) (ff) In order to provide for the expeditious and
7timely implementation of the provisions of Public Act 101-1
8this amendatory Act of the 101st General Assembly, emergency
9rules may be adopted by the Department of Labor in accordance
10with this subsection (gg) (ff) to implement the changes made by
11Public Act 101-1 this amendatory Act of the 101st General
12Assembly to the Minimum Wage Law. The adoption of emergency
13rules authorized by this subsection (gg) (ff) is deemed to be
14necessary for the public interest, safety, and welfare.
15    (kk) In order to provide for the expeditious and timely
16implementation of the provisions of subsection (c) of Section
1720 of the Video Gaming Act, emergency rules to implement the
18provisions of subsection (c) of Section 20 of the Video Gaming
19Act may be adopted in accordance with this subsection (kk) by
20the Illinois Gaming Board. The adoption of emergency rules
21authorized by this subsection (kk) is deemed to be necessary
22for the public interest, safety, and welfare.
23(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
24100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
256-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
26100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.

 

 

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13-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
 
2    Section 35-5. The Open Meetings Act is amended by changing
3Section 2 as follows:
 
4    (5 ILCS 120/2)  (from Ch. 102, par. 42)
5    Sec. 2. Open meetings.
6    (a) Openness required. All meetings of public bodies shall
7be open to the public unless excepted in subsection (c) and
8closed in accordance with Section 2a.
9    (b) Construction of exceptions. The exceptions contained
10in subsection (c) are in derogation of the requirement that
11public bodies meet in the open, and therefore, the exceptions
12are to be strictly construed, extending only to subjects
13clearly within their scope. The exceptions authorize but do not
14require the holding of a closed meeting to discuss a subject
15included within an enumerated exception.
16    (c) Exceptions. A public body may hold closed meetings to
17consider the following subjects:
18        (1) The appointment, employment, compensation,
19    discipline, performance, or dismissal of specific
20    employees of the public body or legal counsel for the
21    public body, including hearing testimony on a complaint
22    lodged against an employee of the public body or against
23    legal counsel for the public body to determine its
24    validity. However, a meeting to consider an increase in

 

 

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1    compensation to a specific employee of a public body that
2    is subject to the Local Government Wage Increase
3    Transparency Act may not be closed and shall be open to the
4    public and posted and held in accordance with this Act.
5        (2) Collective negotiating matters between the public
6    body and its employees or their representatives, or
7    deliberations concerning salary schedules for one or more
8    classes of employees.
9        (3) The selection of a person to fill a public office,
10    as defined in this Act, including a vacancy in a public
11    office, when the public body is given power to appoint
12    under law or ordinance, or the discipline, performance or
13    removal of the occupant of a public office, when the public
14    body is given power to remove the occupant under law or
15    ordinance.
16        (4) Evidence or testimony presented in open hearing, or
17    in closed hearing where specifically authorized by law, to
18    a quasi-adjudicative body, as defined in this Act, provided
19    that the body prepares and makes available for public
20    inspection a written decision setting forth its
21    determinative reasoning.
22        (5) The purchase or lease of real property for the use
23    of the public body, including meetings held for the purpose
24    of discussing whether a particular parcel should be
25    acquired.
26        (6) The setting of a price for sale or lease of

 

 

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1    property owned by the public body.
2        (7) The sale or purchase of securities, investments, or
3    investment contracts. This exception shall not apply to the
4    investment of assets or income of funds deposited into the
5    Illinois Prepaid Tuition Trust Fund.
6        (8) Security procedures, school building safety and
7    security, and the use of personnel and equipment to respond
8    to an actual, a threatened, or a reasonably potential
9    danger to the safety of employees, students, staff, the
10    public, or public property.
11        (9) Student disciplinary cases.
12        (10) The placement of individual students in special
13    education programs and other matters relating to
14    individual students.
15        (11) Litigation, when an action against, affecting or
16    on behalf of the particular public body has been filed and
17    is pending before a court or administrative tribunal, or
18    when the public body finds that an action is probable or
19    imminent, in which case the basis for the finding shall be
20    recorded and entered into the minutes of the closed
21    meeting.
22        (12) The establishment of reserves or settlement of
23    claims as provided in the Local Governmental and
24    Governmental Employees Tort Immunity Act, if otherwise the
25    disposition of a claim or potential claim might be
26    prejudiced, or the review or discussion of claims, loss or

 

 

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1    risk management information, records, data, advice or
2    communications from or with respect to any insurer of the
3    public body or any intergovernmental risk management
4    association or self insurance pool of which the public body
5    is a member.
6        (13) Conciliation of complaints of discrimination in
7    the sale or rental of housing, when closed meetings are
8    authorized by the law or ordinance prescribing fair housing
9    practices and creating a commission or administrative
10    agency for their enforcement.
11        (14) Informant sources, the hiring or assignment of
12    undercover personnel or equipment, or ongoing, prior or
13    future criminal investigations, when discussed by a public
14    body with criminal investigatory responsibilities.
15        (15) Professional ethics or performance when
16    considered by an advisory body appointed to advise a
17    licensing or regulatory agency on matters germane to the
18    advisory body's field of competence.
19        (16) Self evaluation, practices and procedures or
20    professional ethics, when meeting with a representative of
21    a statewide association of which the public body is a
22    member.
23        (17) The recruitment, credentialing, discipline or
24    formal peer review of physicians or other health care
25    professionals, or for the discussion of matters protected
26    under the federal Patient Safety and Quality Improvement

 

 

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1    Act of 2005, and the regulations promulgated thereunder,
2    including 42 C.F.R. Part 3 (73 FR 70732), or the federal
3    Health Insurance Portability and Accountability Act of
4    1996, and the regulations promulgated thereunder,
5    including 45 C.F.R. Parts 160, 162, and 164, by a hospital,
6    or other institution providing medical care, that is
7    operated by the public body.
8        (18) Deliberations for decisions of the Prisoner
9    Review Board.
10        (19) Review or discussion of applications received
11    under the Experimental Organ Transplantation Procedures
12    Act.
13        (20) The classification and discussion of matters
14    classified as confidential or continued confidential by
15    the State Government Suggestion Award Board.
16        (21) Discussion of minutes of meetings lawfully closed
17    under this Act, whether for purposes of approval by the
18    body of the minutes or semi-annual review of the minutes as
19    mandated by Section 2.06.
20        (22) Deliberations for decisions of the State
21    Emergency Medical Services Disciplinary Review Board.
22        (23) The operation by a municipality of a municipal
23    utility or the operation of a municipal power agency or
24    municipal natural gas agency when the discussion involves
25    (i) contracts relating to the purchase, sale, or delivery
26    of electricity or natural gas or (ii) the results or

 

 

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1    conclusions of load forecast studies.
2        (24) Meetings of a residential health care facility
3    resident sexual assault and death review team or the
4    Executive Council under the Abuse Prevention Review Team
5    Act.
6        (25) Meetings of an independent team of experts under
7    Brian's Law.
8        (26) Meetings of a mortality review team appointed
9    under the Department of Juvenile Justice Mortality Review
10    Team Act.
11        (27) (Blank).
12        (28) Correspondence and records (i) that may not be
13    disclosed under Section 11-9 of the Illinois Public Aid
14    Code or (ii) that pertain to appeals under Section 11-8 of
15    the Illinois Public Aid Code.
16        (29) Meetings between internal or external auditors
17    and governmental audit committees, finance committees, and
18    their equivalents, when the discussion involves internal
19    control weaknesses, identification of potential fraud risk
20    areas, known or suspected frauds, and fraud interviews
21    conducted in accordance with generally accepted auditing
22    standards of the United States of America.
23        (30) Those meetings or portions of meetings of a
24    fatality review team or the Illinois Fatality Review Team
25    Advisory Council during which a review of the death of an
26    eligible adult in which abuse or neglect is suspected,

 

 

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1    alleged, or substantiated is conducted pursuant to Section
2    15 of the Adult Protective Services Act.
3        (31) Meetings and deliberations for decisions of the
4    Concealed Carry Licensing Review Board under the Firearm
5    Concealed Carry Act.
6        (32) Meetings between the Regional Transportation
7    Authority Board and its Service Boards when the discussion
8    involves review by the Regional Transportation Authority
9    Board of employment contracts under Section 28d of the
10    Metropolitan Transit Authority Act and Sections 3A.18 and
11    3B.26 of the Regional Transportation Authority Act.
12        (33) Those meetings or portions of meetings of the
13    advisory committee and peer review subcommittee created
14    under Section 320 of the Illinois Controlled Substances Act
15    during which specific controlled substance prescriber,
16    dispenser, or patient information is discussed.
17        (34) Meetings of the Tax Increment Financing Reform
18    Task Force under Section 2505-800 of the Department of
19    Revenue Law of the Civil Administrative Code of Illinois.
20        (35) Meetings of the group established to discuss
21    Medicaid capitation rates under Section 5-30.8 of the
22    Illinois Public Aid Code.
23        (36) Those deliberations or portions of deliberations
24    for decisions of the Illinois Gaming Board in which there
25    is discussed any of the following: (i) personal,
26    commercial, financial, or other information obtained from

 

 

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1    any source that is privileged, proprietary, confidential,
2    or a trade secret; or (ii) information specifically
3    exempted from the disclosure by federal or State law.
4    (d) Definitions. For purposes of this Section:
5    "Employee" means a person employed by a public body whose
6relationship with the public body constitutes an
7employer-employee relationship under the usual common law
8rules, and who is not an independent contractor.
9    "Public office" means a position created by or under the
10Constitution or laws of this State, the occupant of which is
11charged with the exercise of some portion of the sovereign
12power of this State. The term "public office" shall include
13members of the public body, but it shall not include
14organizational positions filled by members thereof, whether
15established by law or by a public body itself, that exist to
16assist the body in the conduct of its business.
17    "Quasi-adjudicative body" means an administrative body
18charged by law or ordinance with the responsibility to conduct
19hearings, receive evidence or testimony and make
20determinations based thereon, but does not include local
21electoral boards when such bodies are considering petition
22challenges.
23    (e) Final action. No final action may be taken at a closed
24meeting. Final action shall be preceded by a public recital of
25the nature of the matter being considered and other information
26that will inform the public of the business being conducted.

 

 

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1(Source: P.A. 99-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480,
2eff. 9-9-15; 99-642, eff. 7-28-16; 99-646, eff. 7-28-16;
399-687, eff. 1-1-17; 100-201, eff. 8-18-17; 100-465, eff.
48-31-17; 100-646, eff. 7-27-18.)
 
5    Section 35-10. The State Officials and Employees Ethics Act
6is amended by changing Section 5-45 as follows:
 
7    (5 ILCS 430/5-45)
8    Sec. 5-45. Procurement; revolving door prohibition.
9    (a) No former officer, member, or State employee, or spouse
10or immediate family member living with such person, shall,
11within a period of one year immediately after termination of
12State employment, knowingly accept employment or receive
13compensation or fees for services from a person or entity if
14the officer, member, or State employee, during the year
15immediately preceding termination of State employment,
16participated personally and substantially in the award of State
17contracts, or the issuance of State contract change orders,
18with a cumulative value of $25,000 or more to the person or
19entity, or its parent or subsidiary.
20    (a-5) No officer, member, or spouse or immediate family
21member living with such person shall, during the officer or
22member's term in office or within a period of 2 years
23immediately leaving office, hold an ownership interest, other
24than a passive interest in a publicly traded company, in any

 

 

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1gaming license under the Illinois Gambling Act, the Video
2Gaming Act, the Illinois Horse Racing Act of 1975, or the
3Sports Wagering Act. Any member of the General Assembly or
4spouse or immediate family member living with such person who
5has an ownership interest, other than a passive interest in a
6publicly traded company, in any gaming license under the
7Illinois Gambling Act, the Illinois Horse Racing Act of 1975,
8the Video Gaming Act, or the Sports Wagering Act at the time of
9the effective date of this amendatory Act of the 101st General
10Assembly shall divest himself or herself of such ownership
11within one year after the effective date of this amendatory Act
12of the 101st General Assembly. No State employee who works for
13the Illinois Gaming Board or Illinois Racing Board or spouse or
14immediate family member living with such person shall, during
15State employment or within a period of 2 years immediately
16after termination of State employment, hold an ownership
17interest, other than a passive interest in a publicly traded
18company, in any gaming license under the Illinois Gambling Act,
19the Video Gaming Act, the Illinois Horse Racing Act of 1975, or
20the Sports Wagering Act.
21    (b) No former officer of the executive branch or State
22employee of the executive branch with regulatory or licensing
23authority, or spouse or immediate family member living with
24such person, shall, within a period of one year immediately
25after termination of State employment, knowingly accept
26employment or receive compensation or fees for services from a

 

 

10100SB0690ham003- 332 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 333 -LRB101 04451 SMS 61572 a

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

 

 

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

 

 

10100SB0690ham003- 335 -LRB101 04451 SMS 61572 a

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

 

 

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1        (2) members of a commission or board created by the
2    Illinois Constitution;
3        (3) persons whose appointment to office is subject to
4    the advice and consent of the Senate;
5        (4) the head of a department, commission, board,
6    division, bureau, authority, or other administrative unit
7    within the government of this State;
8        (5) chief procurement officers, State purchasing
9    officers, and their designees whose duties are directly
10    related to State procurement; and
11        (6) chiefs of staff, deputy chiefs of staff, associate
12    chiefs of staff, assistant chiefs of staff, and deputy
13    governors; .
14        (7) employees of the Illinois Racing Board; and
15        (8) employees of the Illinois Gaming Board.
16    (i) For the purposes of this Section, with respect to
17officers or employees of a regional transit board, as defined
18in this Act, the phrase "person or entity" does not include:
19(i) the United States government, (ii) the State, (iii)
20municipalities, as defined under Article VII, Section 1 of the
21Illinois Constitution, (iv) units of local government, as
22defined under Article VII, Section 1 of the Illinois
23Constitution, or (v) school districts.
24(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
 
25    Section 35-15. The Alcoholism and Other Drug Abuse and

 

 

10100SB0690ham003- 337 -LRB101 04451 SMS 61572 a

1Dependency Act is amended by changing Section 5-20 as follows:
 
2    (20 ILCS 301/5-20)
3    Sec. 5-20. Gambling disorders.
4    (a) Subject to appropriation, the Department shall
5establish a program for public education, research, and
6training regarding gambling disorders and the treatment and
7prevention of gambling disorders. Subject to specific
8appropriation for these stated purposes, the program must
9include all of the following:
10        (1) Establishment and maintenance of a toll-free "800"
11    telephone number to provide crisis counseling and referral
12    services to families experiencing difficulty as a result of
13    gambling disorders.
14        (2) Promotion of public awareness regarding the
15    recognition and prevention of gambling disorders.
16        (3) Facilitation, through in-service training and
17    other means, of the availability of effective assistance
18    programs for gambling disorders.
19        (4) Conducting studies to identify adults and
20    juveniles in this State who have, or who are at risk of
21    developing, gambling disorders.
22    (b) Subject to appropriation, the Department shall either
23establish and maintain the program or contract with a private
24or public entity for the establishment and maintenance of the
25program. Subject to appropriation, either the Department or the

 

 

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1private or public entity shall implement the toll-free
2telephone number, promote public awareness, and conduct
3in-service training concerning gambling disorders.
4    (c) Subject to appropriation, the Department shall produce
5and supply the signs specified in Section 10.7 of the Illinois
6Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
71975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
8of the Charitable Games Act, and Section 13.1 of the Illinois
9Riverboat Gambling Act.
10(Source: P.A. 100-759, eff. 1-1-19.)
 
11    Section 35-20. The Illinois Lottery Law is amended by
12changing Section 9.1 as follows:
 
13    (20 ILCS 1605/9.1)
14    Sec. 9.1. Private manager and management agreement.
15    (a) As used in this Section:
16    "Offeror" means a person or group of persons that responds
17to a request for qualifications under this Section.
18    "Request for qualifications" means all materials and
19documents prepared by the Department to solicit the following
20from offerors:
21        (1) Statements of qualifications.
22        (2) Proposals to enter into a management agreement,
23    including the identity of any prospective vendor or vendors
24    that the offeror intends to initially engage to assist the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    as otherwise provided in Section 20 of this Act.
2        (8) A provision requiring the private manager to locate
3    its principal office within the State.
4        (8-5) A provision encouraging that at least 20% of the
5    cost of contracts entered into for goods and services by
6    the private manager in connection with its management of
7    the Lottery, other than contracts with sales agents or
8    technical advisors, be awarded to businesses that are a
9    minority-owned business, a women-owned business, or a
10    business owned by a person with disability, as those terms
11    are defined in the Business Enterprise for Minorities,
12    Women, and Persons with Disabilities Act.
13        (9) A requirement that so long as the private manager
14    complies with all the conditions of the agreement under the
15    oversight of the Department, the private manager shall have
16    the following duties and obligations with respect to the
17    management of the Lottery:
18            (A) The right to use equipment and other assets
19        used in the operation of the Lottery.
20            (B) The rights and obligations under contracts
21        with retailers and vendors.
22            (C) The implementation of a comprehensive security
23        program by the private manager.
24            (D) The implementation of a comprehensive system
25        of internal audits.
26            (E) The implementation of a program by the private

 

 

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

 

 

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

 

 

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1    the operation of the Lottery, from the manager to any
2    successor manager of the lottery, including the
3    Department, following the termination of or foreclosure
4    upon the management agreement.
5        (21) Right of use of copyrights, trademarks, and
6    service marks held by the Department in the name of the
7    State. The agreement must provide that any use of them by
8    the manager shall only be for the purpose of fulfilling its
9    obligations under the management agreement during the term
10    of the agreement.
11        (22) The disclosure of any information requested by the
12    Department to enable it to comply with the reporting
13    requirements and information requests provided for under
14    subsection (p) of this Section.
15    (e) Notwithstanding any other law to the contrary, the
16Department shall select a private manager through a competitive
17request for qualifications process consistent with Section
1820-35 of the Illinois Procurement Code, which shall take into
19account:
20        (1) the offeror's ability to market the Lottery to
21    those residents who are new, infrequent, or lapsed players
22    of the Lottery, especially those who are most likely to
23    make regular purchases on the Internet;
24        (2) the offeror's ability to address the State's
25    concern with the social effects of gambling on those who
26    can least afford to do so;

 

 

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

 

 

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

 

 

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

 

 

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1management agreement with the private manager.
2    (i) Any action to contest the private manager selected by
3the Governor under this Section must be brought within 7
4calendar days after the publication of the notice of the
5designation of the private manager as provided in subsection
6(h) of this Section.
7    (j) The Lottery shall remain, for so long as a private
8manager manages the Lottery in accordance with provisions of
9this Act, a Lottery conducted by the State, and the State shall
10not be authorized to sell or transfer the Lottery to a third
11party.
12    (k) Any tangible personal property used exclusively in
13connection with the lottery that is owned by the Department and
14leased to the private manager shall be owned by the Department
15in the name of the State and shall be considered to be public
16property devoted to an essential public and governmental
17function.
18    (l) The Department may exercise any of its powers under
19this Section or any other law as necessary or desirable for the
20execution of the Department's powers under this Section.
21    (m) Neither this Section nor any management agreement
22entered into under this Section prohibits the General Assembly
23from authorizing forms of gambling that are not in direct
24competition with the Lottery. The forms of gambling authorized
25by this amendatory Act of the 101st General Assembly constitute
26authorized forms of gambling that are not in direct competition

 

 

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

 

 

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

 

 

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1of this Section and may include provisions consistent with
2subsections (f), (g), (h), and (i) of this Section. The Chief
3Procurement Officer shall also implement and administer the
4adopted selection process upon the termination of a private
5management agreement. The Department, after the Chief
6Procurement Officer certifies that the procurement process has
7been followed in accordance with the rules adopted under this
8subsection (o), shall select a final offeror as the private
9manager and sign the management agreement with the private
10manager.
11    Except as provided in Sections 21.5, 21.6, 21.7, 21.8,
1221.9, and 21.10, and 21.11, 21.10 the Department shall
13distribute all proceeds of lottery tickets and shares sold in
14the following priority and manner:
15        (1) The payment of prizes and retailer bonuses.
16        (2) The payment of costs incurred in the operation and
17    administration of the Lottery, including the payment of
18    sums due to the private manager under the management
19    agreement with the Department.
20        (3) On the last day of each month or as soon thereafter
21    as possible, the State Comptroller shall direct and the
22    State Treasurer shall transfer from the State Lottery Fund
23    to the Common School Fund an amount that is equal to the
24    proceeds transferred in the corresponding month of fiscal
25    year 2009, as adjusted for inflation, to the Common School
26    Fund.

 

 

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1        (4) On or before September 30 of each fiscal year,
2    deposit any estimated remaining proceeds from the prior
3    fiscal year, subject to payments under items (1), (2), and
4    (3), into the Capital Projects Fund. Beginning in fiscal
5    year 2019, the amount deposited shall be increased or
6    decreased each year by the amount the estimated payment
7    differs from the amount determined from each year-end
8    financial audit. Only remaining net deficits from prior
9    fiscal years may reduce the requirement to deposit these
10    funds, as determined by the annual financial audit.
11    (p) The Department shall be subject to the following
12reporting and information request requirements:
13        (1) the Department shall submit written quarterly
14    reports to the Governor and the General Assembly on the
15    activities and actions of the private manager selected
16    under this Section;
17        (2) upon request of the Chief Procurement Officer, the
18    Department shall promptly produce information related to
19    the procurement activities of the Department and the
20    private manager requested by the Chief Procurement
21    Officer; the Chief Procurement Officer must retain
22    confidential, proprietary, or trade secret information
23    designated by the Department in complete confidence
24    pursuant to subsection (g) of Section 7 of the Freedom of
25    Information Act; and
26        (3) at least 30 days prior to the beginning of the

 

 

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1    Department's fiscal year, the Department shall prepare an
2    annual written report on the activities of the private
3    manager selected under this Section and deliver that report
4    to the Governor and General Assembly.
5(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17;
6100-587, eff. 6-4-18; 100-647, eff. 7-30-18; 100-1068, eff.
78-24-18; revised 9-20-18.)
 
8    Section 35-25. The Department of Revenue Law of the Civil
9Administrative Code of Illinois is amended by changing Section
102505-305 as follows:
 
11    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
12    Sec. 2505-305. Investigators.
13    (a) The Department has the power to appoint investigators
14to conduct all investigations, searches, seizures, arrests,
15and other duties imposed under the provisions of any law
16administered by the Department. Except as provided in
17subsection (c), these investigators have and may exercise all
18the powers of peace officers solely for the purpose of
19enforcing taxing measures administered by the Department.
20    (b) The Director must authorize to each investigator
21employed under this Section and to any other employee of the
22Department exercising the powers of a peace officer a distinct
23badge that, on its face, (i) clearly states that the badge is
24authorized by the Department and (ii) contains a unique

 

 

10100SB0690ham003- 356 -LRB101 04451 SMS 61572 a

1identifying number. No other badge shall be authorized by the
2Department.
3    (c) The Department may enter into agreements with the
4Illinois Gaming Board providing that investigators appointed
5under this Section shall exercise the peace officer powers set
6forth in paragraph (20.6) of subsection (c) of Section 5 of the
7Illinois Riverboat Gambling Act.
8(Source: P.A. 96-37, eff. 7-13-09.)
 
9    Section 35-30. The State Finance Act is amended by changing
10Section 6z-45 as follows:
 
11    (30 ILCS 105/6z-45)
12    Sec. 6z-45. The School Infrastructure Fund.
13    (a) The School Infrastructure Fund is created as a special
14fund in the State Treasury.
15    In addition to any other deposits authorized by law,
16beginning January 1, 2000, on the first day of each month, or
17as soon thereafter as may be practical, the State Treasurer and
18State Comptroller shall transfer the sum of $5,000,000 from the
19General Revenue Fund to the School Infrastructure Fund, except
20that, notwithstanding any other provision of law, and in
21addition to any other transfers that may be provided for by
22law, before June 30, 2012, the Comptroller and the Treasurer
23shall transfer $45,000,000 from the General Revenue Fund into
24the School Infrastructure Fund, and, for fiscal year 2013 only,

 

 

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1the Treasurer and the Comptroller shall transfer $1,250,000
2from the General Revenue Fund to the School Infrastructure Fund
3on the first day of each month; provided, however, that no such
4transfers shall be made from July 1, 2001 through June 30,
52003.
6    (a-5) Money in the School Infrastructure Fund may be used
7to pay the expenses of the State Board of Education, the
8Governor's Office of Management and Budget, and the Capital
9Development Board in administering programs under the School
10Construction Law, the total expenses not to exceed $1,315,000
11in any fiscal year.
12    (b) Subject to the transfer provisions set forth below,
13money in the School Infrastructure Fund shall, if and when the
14State of Illinois incurs any bonded indebtedness for the
15construction of school improvements under subsection (e) of
16Section 5 of the General Obligation Bond Act, be set aside and
17used for the purpose of paying and discharging annually the
18principal and interest on that bonded indebtedness then due and
19payable, and for no other purpose.
20    In addition to other transfers to the General Obligation
21Bond Retirement and Interest Fund made pursuant to Section 15
22of the General Obligation Bond Act, upon each delivery of bonds
23issued for construction of school improvements under the School
24Construction Law, the State Comptroller shall compute and
25certify to the State Treasurer the total amount of principal
26of, interest on, and premium, if any, on such bonds during the

 

 

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

 

 

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1    (b-5) The money deposited into the School Infrastructure
2Fund from transfers pursuant to subsections (c-30) and (c-35)
3of Section 13 of the Illinois Riverboat Gambling Act shall be
4applied, without further direction, as provided in subsection
5(b-3) of Section 5-35 of the School Construction Law.
6    (c) The surplus, if any, in the School Infrastructure Fund
7after payments made pursuant to subsections (a-5), (b), and
8(b-5) of this Section shall, subject to appropriation, be used
9as follows:
10    First - to make 3 payments to the School Technology
11Revolving Loan Fund as follows:
12        Transfer of $30,000,000 in fiscal year 1999;
13        Transfer of $20,000,000 in fiscal year 2000; and
14        Transfer of $10,000,000 in fiscal year 2001.
15    Second - to pay any amounts due for grants for school
16construction projects and debt service under the School
17Construction Law.
18    Third - to pay any amounts due for grants for school
19maintenance projects under the School Construction Law.
20(Source: P.A. 100-23, eff. 7-6-17.)
 
21    Section 35-35. The Illinois Income Tax Act is amended by
22changing Sections 201, 303, 304, and 710 as follows:
 
23    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
24    Sec. 201. Tax imposed.

 

 

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

 

 

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1    taxable years beginning prior to January 1, 2011, and
2    ending after December 31, 2010, an amount equal to the sum
3    of (i) 3% of the taxpayer's net income for the period prior
4    to January 1, 2011, as calculated under Section 202.5, and
5    (ii) 5% of the taxpayer's net income for the period after
6    December 31, 2010, as calculated under Section 202.5.
7        (5) In the case of an individual, trust, or estate, for
8    taxable years beginning on or after January 1, 2011, and
9    ending prior to January 1, 2015, an amount equal to 5% of
10    the taxpayer's net income for the taxable year.
11        (5.1) In the case of an individual, trust, or estate,
12    for taxable years beginning prior to January 1, 2015, and
13    ending after December 31, 2014, an amount equal to the sum
14    of (i) 5% of the taxpayer's net income for the period prior
15    to January 1, 2015, as calculated under Section 202.5, and
16    (ii) 3.75% of the taxpayer's net income for the period
17    after December 31, 2014, as calculated under Section 202.5.
18        (5.2) In the case of an individual, trust, or estate,
19    for taxable years beginning on or after January 1, 2015,
20    and ending prior to July 1, 2017, an amount equal to 3.75%
21    of the taxpayer's net income for the taxable year.
22        (5.3) In the case of an individual, trust, or estate,
23    for taxable years beginning prior to July 1, 2017, and
24    ending after June 30, 2017, an amount equal to the sum of
25    (i) 3.75% of the taxpayer's net income for the period prior
26    to July 1, 2017, as calculated under Section 202.5, and

 

 

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1    (ii) 4.95% of the taxpayer's net income for the period
2    after June 30, 2017, as calculated under Section 202.5.
3        (5.4) In the case of an individual, trust, or estate,
4    for taxable years beginning on or after July 1, 2017, an
5    amount equal to 4.95% of the taxpayer's net income for the
6    taxable year.
7        (6) In the case of a corporation, for taxable years
8    ending prior to July 1, 1989, an amount equal to 4% of the
9    taxpayer's net income for the taxable year.
10        (7) In the case of a corporation, for taxable years
11    beginning prior to July 1, 1989 and ending after June 30,
12    1989, an amount equal to the sum of (i) 4% of the
13    taxpayer's net income for the period prior to July 1, 1989,
14    as calculated under Section 202.3, and (ii) 4.8% of the
15    taxpayer's net income for the period after June 30, 1989,
16    as calculated under Section 202.3.
17        (8) In the case of a corporation, for taxable years
18    beginning after June 30, 1989, and ending prior to January
19    1, 2011, an amount equal to 4.8% of the taxpayer's net
20    income for the taxable year.
21        (9) In the case of a corporation, for taxable years
22    beginning prior to January 1, 2011, and ending after
23    December 31, 2010, an amount equal to the sum of (i) 4.8%
24    of the taxpayer's net income for the period prior to
25    January 1, 2011, as calculated under Section 202.5, and
26    (ii) 7% of the taxpayer's net income for the period after

 

 

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1    December 31, 2010, as calculated under Section 202.5.
2        (10) In the case of a corporation, for taxable years
3    beginning on or after January 1, 2011, and ending prior to
4    January 1, 2015, an amount equal to 7% of the taxpayer's
5    net income for the taxable year.
6        (11) In the case of a corporation, for taxable years
7    beginning prior to January 1, 2015, and ending after
8    December 31, 2014, an amount equal to the sum of (i) 7% of
9    the taxpayer's net income for the period prior to January
10    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
11    of the taxpayer's net income for the period after December
12    31, 2014, as calculated under Section 202.5.
13        (12) In the case of a corporation, for taxable years
14    beginning on or after January 1, 2015, and ending prior to
15    July 1, 2017, an amount equal to 5.25% of the taxpayer's
16    net income for the taxable year.
17        (13) In the case of a corporation, for taxable years
18    beginning prior to July 1, 2017, and ending after June 30,
19    2017, an amount equal to the sum of (i) 5.25% of the
20    taxpayer's net income for the period prior to July 1, 2017,
21    as calculated under Section 202.5, and (ii) 7% of the
22    taxpayer's net income for the period after June 30, 2017,
23    as calculated under Section 202.5.
24        (14) In the case of a corporation, for taxable years
25    beginning on or after July 1, 2017, an amount equal to 7%
26    of the taxpayer's net income for the taxable year.

 

 

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1    The rates under this subsection (b) are subject to the
2provisions of Section 201.5.
3    (b-5) Surcharge; sale or exchange of assets, properties,
4and intangibles of organization gaming licensees. For each of
5taxable years 2019 through 2027, a surcharge is imposed on all
6taxpayers on income arising from the sale or exchange of
7capital assets, depreciable business property, real property
8used in the trade or business, and Section 197 intangibles (i)
9of an organization licensee under the Illinois Horse Racing Act
10of 1975 and (ii) of an organization gaming licensee under the
11Illinois Gambling Act. The amount of the surcharge is equal to
12the amount of federal income tax liability for the taxable year
13attributable to those sales and exchanges. The surcharge
14imposed shall not apply if:
15        (1) the organization gaming license, organization
16    license, or racetrack property is transferred as a result
17    of any of the following:
18            (A) bankruptcy, a receivership, or a debt
19        adjustment initiated by or against the initial
20        licensee or the substantial owners of the initial
21        licensee;
22            (B) cancellation, revocation, or termination of
23        any such license by the Illinois Gaming Board or the
24        Illinois Racing Board;
25            (C) a determination by the Illinois Gaming Board
26        that transfer of the license is in the best interests

 

 

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1        of Illinois gaming;
2            (D) the death of an owner of the equity interest in
3        a licensee;
4            (E) the acquisition of a controlling interest in
5        the stock or substantially all of the assets of a
6        publicly traded company;
7            (F) a transfer by a parent company to a wholly
8        owned subsidiary; or
9            (G) the transfer or sale to or by one person to
10        another person where both persons were initial owners
11        of the license when the license was issued; or
12        (2) the controlling interest in the organization
13    gaming license, organization license, or racetrack
14    property is transferred in a transaction to lineal
15    descendants in which no gain or loss is recognized or as a
16    result of a transaction in accordance with Section 351 of
17    the Internal Revenue Code in which no gain or loss is
18    recognized; or
19        (3) live horse racing was not conducted in 2010 at a
20    racetrack located within 3 miles of the Mississippi River
21    under a license issued pursuant to the Illinois Horse
22    Racing Act of 1975.
23    The transfer of an organization gaming license,
24organization license, or racetrack property by a person other
25than the initial licensee to receive the organization gaming
26license is not subject to a surcharge. The Department shall

 

 

10100SB0690ham003- 366 -LRB101 04451 SMS 61572 a

1adopt rules necessary to implement and administer this
2subsection.
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

 

 

10100SB0690ham003- 367 -LRB101 04451 SMS 61572 a

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

 

 

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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.

 

 

10100SB0690ham003- 369 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 370 -LRB101 04451 SMS 61572 a

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,

 

 

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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

 

 

10100SB0690ham003- 372 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 373 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 374 -LRB101 04451 SMS 61572 a

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)

 

 

10100SB0690ham003- 375 -LRB101 04451 SMS 61572 a

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

 

 

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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

 

 

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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

 

 

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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%,

 

 

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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

 

 

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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"

 

 

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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

 

 

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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

 

 

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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

 

 

10100SB0690ham003- 384 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 385 -LRB101 04451 SMS 61572 a

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, 2022, 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

 

 

10100SB0690ham003- 386 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 387 -LRB101 04451 SMS 61572 a

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    It is the intent of the General Assembly that the research
9and development credit under this subsection (k) shall apply
10continuously for all tax years ending on or after December 31,
112004 and ending prior to January 1, 2022, including, but not
12limited to, the period beginning on January 1, 2016 and ending
13on the effective date of this amendatory Act of the 100th
14General Assembly. All actions taken in reliance on the
15continuation of the credit under this subsection (k) by any
16taxpayer are hereby validated.
17    (l) Environmental Remediation Tax Credit.
18        (i) For tax years ending after December 31, 1997 and on
19    or before December 31, 2001, a taxpayer shall be allowed a
20    credit against the tax imposed by subsections (a) and (b)
21    of this Section for certain amounts paid for unreimbursed
22    eligible remediation costs, as specified in this
23    subsection. For purposes of this Section, "unreimbursed
24    eligible remediation costs" means costs approved by the
25    Illinois Environmental Protection Agency ("Agency") under
26    Section 58.14 of the Environmental Protection Act that were

 

 

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1    paid in performing environmental remediation at a site for
2    which a No Further Remediation Letter was issued by the
3    Agency and recorded under Section 58.10 of the
4    Environmental Protection Act. The credit must be claimed
5    for the taxable year in which Agency approval of the
6    eligible remediation costs is granted. The credit is not
7    available to any taxpayer if the taxpayer or any related
8    party caused or contributed to, in any material respect, a
9    release of regulated substances on, in, or under the site
10    that was identified and addressed by the remedial action
11    pursuant to the Site Remediation Program of the
12    Environmental Protection Act. After the Pollution Control
13    Board rules are adopted pursuant to the Illinois
14    Administrative Procedure Act for the administration and
15    enforcement of Section 58.9 of the Environmental
16    Protection Act, determinations as to credit availability
17    for purposes of this Section shall be made consistent with
18    those rules. For purposes of this Section, "taxpayer"
19    includes a person whose tax attributes the taxpayer has
20    succeeded to under Section 381 of the Internal Revenue Code
21    and "related party" includes the persons disallowed a
22    deduction for losses by paragraphs (b), (c), and (f)(1) of
23    Section 267 of the Internal Revenue Code by virtue of being
24    a related taxpayer, as well as any of its partners. The
25    credit allowed against the tax imposed by subsections (a)
26    and (b) shall be equal to 25% of the unreimbursed eligible

 

 

10100SB0690ham003- 389 -LRB101 04451 SMS 61572 a

1    remediation costs in excess of $100,000 per site, except
2    that the $100,000 threshold shall not apply to any site
3    contained in an enterprise zone as determined by the
4    Department of Commerce and Community Affairs (now
5    Department of Commerce and Economic Opportunity). The
6    total credit allowed shall not exceed $40,000 per year with
7    a maximum total of $150,000 per site. For partners and
8    shareholders of subchapter S corporations, there shall be
9    allowed a credit under this subsection to be determined in
10    accordance with the determination of income and
11    distributive share of income under Sections 702 and 704 and
12    subchapter S of the Internal Revenue Code.
13        (ii) A credit allowed under this subsection that is
14    unused in the year the credit is earned may be carried
15    forward to each of the 5 taxable years following the year
16    for which the credit is first earned until it is used. The
17    term "unused credit" does not include any amounts of
18    unreimbursed eligible remediation costs in excess of the
19    maximum credit per site authorized under paragraph (i).
20    This credit shall be applied first to the earliest year for
21    which there is a liability. If there is a credit under this
22    subsection from more than one tax year that is available to
23    offset a liability, the earliest credit arising under this
24    subsection shall be applied first. A credit allowed under
25    this subsection may be sold to a buyer as part of a sale of
26    all or part of the remediation site for which the credit

 

 

10100SB0690ham003- 390 -LRB101 04451 SMS 61572 a

1    was granted. The purchaser of a remediation site and the
2    tax credit shall succeed to the unused credit and remaining
3    carry-forward period of the seller. To perfect the
4    transfer, the assignor shall record the transfer in the
5    chain of title for the site and provide written notice to
6    the Director of the Illinois Department of Revenue of the
7    assignor's intent to sell the remediation site and the
8    amount of the tax credit to be transferred as a portion of
9    the sale. In no event may a credit be transferred to any
10    taxpayer if the taxpayer or a related party would not be
11    eligible under the provisions of subsection (i).
12        (iii) For purposes of this Section, the term "site"
13    shall have the same meaning as under Section 58.2 of the
14    Environmental Protection Act.
15    (m) Education expense credit. Beginning with tax years
16ending after December 31, 1999, a taxpayer who is the custodian
17of one or more qualifying pupils shall be allowed a credit
18against the tax imposed by subsections (a) and (b) of this
19Section for qualified education expenses incurred on behalf of
20the qualifying pupils. The credit shall be equal to 25% of
21qualified education expenses, but in no event may the total
22credit under this subsection claimed by a family that is the
23custodian of qualifying pupils exceed (i) $500 for tax years
24ending prior to December 31, 2017, and (ii) $750 for tax years
25ending on or after December 31, 2017. In no event shall a
26credit under this subsection reduce the taxpayer's liability

 

 

10100SB0690ham003- 391 -LRB101 04451 SMS 61572 a

1under this Act to less than zero. Notwithstanding any other
2provision of law, for taxable years beginning on or after
3January 1, 2017, no taxpayer may claim a credit under this
4subsection (m) if the taxpayer's adjusted gross income for the
5taxable year exceeds (i) $500,000, in the case of spouses
6filing a joint federal tax return or (ii) $250,000, in the case
7of all other taxpayers. This subsection is exempt from the
8provisions of Section 250 of this Act.
9    For purposes of this subsection:
10    "Qualifying pupils" means individuals who (i) are
11residents of the State of Illinois, (ii) are under the age of
1221 at the close of the school year for which a credit is
13sought, and (iii) during the school year for which a credit is
14sought were full-time pupils enrolled in a kindergarten through
15twelfth grade education program at any school, as defined in
16this subsection.
17    "Qualified education expense" means the amount incurred on
18behalf of a qualifying pupil in excess of $250 for tuition,
19book fees, and lab fees at the school in which the pupil is
20enrolled during the regular school year.
21    "School" means any public or nonpublic elementary or
22secondary school in Illinois that is in compliance with Title
23VI of the Civil Rights Act of 1964 and attendance at which
24satisfies the requirements of Section 26-1 of the School Code,
25except that nothing shall be construed to require a child to
26attend any particular public or nonpublic school to qualify for

 

 

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1the credit under this Section.
2    "Custodian" means, with respect to qualifying pupils, an
3Illinois resident who is a parent, the parents, a legal
4guardian, or the legal guardians of the qualifying pupils.
5    (n) River Edge Redevelopment Zone site remediation tax
6credit.
7        (i) For tax years ending on or after December 31, 2006,
8    a taxpayer shall be allowed a credit against the tax
9    imposed by subsections (a) and (b) of this Section for
10    certain amounts paid for unreimbursed eligible remediation
11    costs, as specified in this subsection. For purposes of
12    this Section, "unreimbursed eligible remediation costs"
13    means costs approved by the Illinois Environmental
14    Protection Agency ("Agency") under Section 58.14a of the
15    Environmental Protection Act that were paid in performing
16    environmental remediation at a site within a River Edge
17    Redevelopment Zone for which a No Further Remediation
18    Letter was issued by the Agency and recorded under Section
19    58.10 of the Environmental Protection Act. The credit must
20    be claimed for the taxable year in which Agency approval of
21    the eligible remediation costs is granted. The credit is
22    not available to any taxpayer if the taxpayer or any
23    related party caused or contributed to, in any material
24    respect, a release of regulated substances on, in, or under
25    the site that was identified and addressed by the remedial
26    action pursuant to the Site Remediation Program of the

 

 

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1    Environmental Protection Act. Determinations as to credit
2    availability for purposes of this Section shall be made
3    consistent with rules adopted by the Pollution Control
4    Board pursuant to the Illinois Administrative Procedure
5    Act for the administration and enforcement of Section 58.9
6    of the Environmental Protection Act. For purposes of this
7    Section, "taxpayer" includes a person whose tax attributes
8    the taxpayer has succeeded to under Section 381 of the
9    Internal Revenue Code and "related party" includes the
10    persons disallowed a deduction for losses by paragraphs
11    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
12    Code by virtue of being a related taxpayer, as well as any
13    of its partners. The credit allowed against the tax imposed
14    by subsections (a) and (b) shall be equal to 25% of the
15    unreimbursed eligible remediation costs in excess of
16    $100,000 per site.
17        (ii) A credit allowed under this subsection that is
18    unused in the year the credit is earned may be carried
19    forward to each of the 5 taxable years following the year
20    for which the credit is first earned until it is used. This
21    credit shall be applied first to the earliest year for
22    which there is a liability. If there is a credit under this
23    subsection from more than one tax year that is available to
24    offset a liability, the earliest credit arising under this
25    subsection shall be applied first. A credit allowed under
26    this subsection may be sold to a buyer as part of a sale of

 

 

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1    all or part of the remediation site for which the credit
2    was granted. The purchaser of a remediation site and the
3    tax credit shall succeed to the unused credit and remaining
4    carry-forward period of the seller. To perfect the
5    transfer, the assignor shall record the transfer in the
6    chain of title for the site and provide written notice to
7    the Director of the Illinois Department of Revenue of the
8    assignor's intent to sell the remediation site and the
9    amount of the tax credit to be transferred as a portion of
10    the sale. In no event may a credit be transferred to any
11    taxpayer if the taxpayer or a related party would not be
12    eligible under the provisions of subsection (i).
13        (iii) For purposes of this Section, the term "site"
14    shall have the same meaning as under Section 58.2 of the
15    Environmental Protection Act.
16    (o) For each of taxable years during the Compassionate Use
17of Medical Cannabis Pilot Program, a surcharge is imposed on
18all taxpayers on income arising from the sale or exchange of
19capital assets, depreciable business property, real property
20used in the trade or business, and Section 197 intangibles of
21an organization registrant under the Compassionate Use of
22Medical Cannabis Pilot Program Act. The amount of the surcharge
23is equal to the amount of federal income tax liability for the
24taxable year attributable to those sales and exchanges. The
25surcharge imposed does not apply if:
26        (1) the medical cannabis cultivation center

 

 

10100SB0690ham003- 395 -LRB101 04451 SMS 61572 a

1    registration, medical cannabis dispensary registration, or
2    the property of a registration is transferred as a result
3    of any of the following:
4            (A) bankruptcy, a receivership, or a debt
5        adjustment initiated by or against the initial
6        registration or the substantial owners of the initial
7        registration;
8            (B) cancellation, revocation, or termination of
9        any registration by the Illinois Department of Public
10        Health;
11            (C) a determination by the Illinois Department of
12        Public Health that transfer of the registration is in
13        the best interests of Illinois qualifying patients as
14        defined by the Compassionate Use of Medical Cannabis
15        Pilot Program Act;
16            (D) the death of an owner of the equity interest in
17        a registrant;
18            (E) the acquisition of a controlling interest in
19        the stock or substantially all of the assets of a
20        publicly traded company;
21            (F) a transfer by a parent company to a wholly
22        owned subsidiary; or
23            (G) the transfer or sale to or by one person to
24        another person where both persons were initial owners
25        of the registration when the registration was issued;
26        or

 

 

10100SB0690ham003- 396 -LRB101 04451 SMS 61572 a

1        (2) the cannabis cultivation center registration,
2    medical cannabis dispensary registration, or the
3    controlling interest in a registrant's property is
4    transferred in a transaction to lineal descendants in which
5    no gain or loss is recognized or as a result of a
6    transaction in accordance with Section 351 of the Internal
7    Revenue Code in which no gain or loss is recognized.
8(Source: P.A. 100-22, eff. 7-6-17.)
 
9    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)
10    Sec. 303. (a) In general. Any item of capital gain or loss,
11and any item of income from rents or royalties from real or
12tangible personal property, interest, dividends, and patent or
13copyright royalties, and prizes awarded under the Illinois
14Lottery Law, and, for taxable years ending on or after December
1531, 2019, wagering and gambling winnings from Illinois sources
16as set forth in subsection (e-1) of this Section, to the extent
17such item constitutes nonbusiness income, together with any
18item of deduction directly allocable thereto, shall be
19allocated by any person other than a resident as provided in
20this Section.
21    (b) Capital gains and losses.
22        (1) Real property. Capital gains and losses from sales
23    or exchanges of real property are allocable to this State
24    if the property is located in this State.
25        (2) Tangible personal property. Capital gains and

 

 

10100SB0690ham003- 397 -LRB101 04451 SMS 61572 a

1    losses from sales or exchanges of tangible personal
2    property are allocable to this State if, at the time of
3    such sale or exchange:
4            (A) The property had its situs in this State; or
5            (B) The taxpayer had its commercial domicile in
6        this State and was not taxable in the state in which
7        the property had its situs.
8        (3) Intangibles. Capital gains and losses from sales or
9    exchanges of intangible personal property are allocable to
10    this State if the taxpayer had its commercial domicile in
11    this State at the time of such sale or exchange.
12    (c) Rents and royalties.
13        (1) Real property. Rents and royalties from real
14    property are allocable to this State if the property is
15    located in this State.
16        (2) Tangible personal property. Rents and royalties
17    from tangible personal property are allocable to this
18    State:
19            (A) If and to the extent that the property is
20        utilized in this State; or
21            (B) In their entirety if, at the time such rents or
22        royalties were paid or accrued, the taxpayer had its
23        commercial domicile in this State and was not organized
24        under the laws of or taxable with respect to such rents
25        or royalties in the state in which the property was
26        utilized. The extent of utilization of tangible

 

 

10100SB0690ham003- 398 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 399 -LRB101 04451 SMS 61572 a

1            (A) A patent is utilized in a state to the extent
2        that it is employed in production, fabrication,
3        manufacturing or other processing in the state or to
4        the extent that a patented product is produced in the
5        state. If the basis of receipts from patent royalties
6        does not permit allocation to states or if the
7        accounting procedures do not reflect states of
8        utilization, the patent is utilized in this State if
9        the taxpayer has its commercial domicile in this State.
10            (B) A copyright is utilized in a state to the
11        extent that printing or other publication originates
12        in the state. If the basis of receipts from copyright
13        royalties does not permit allocation to states or if
14        the accounting procedures do not reflect states of
15        utilization, the copyright is utilized in this State if
16        the taxpayer has its commercial domicile in this State.
17    (e) Illinois lottery prizes. Prizes awarded under the
18Illinois Lottery Law are allocable to this State. Payments
19received in taxable years ending on or after December 31, 2013,
20from the assignment of a prize under Section 13.1 of the
21Illinois Lottery Law are allocable to this State.
22    (e-1) Wagering and gambling winnings. Payments received in
23taxable years ending on or after December 31, 2019 of winnings
24from pari-mutuel wagering conducted at a wagering facility
25licensed under the Illinois Horse Racing Act of 1975 and from
26gambling games conducted on a riverboat or in a casino or

 

 

10100SB0690ham003- 400 -LRB101 04451 SMS 61572 a

1organization gaming facility licensed under the Illinois
2Gambling Act are allocable to this State.
3    (e-5) Unemployment benefits. Unemployment benefits paid by
4the Illinois Department of Employment Security are allocable to
5this State.
6    (f) Taxability in other state. For purposes of allocation
7of income pursuant to this Section, a taxpayer is taxable in
8another state if:
9        (1) In that state he is subject to a net income tax, a
10    franchise tax measured by net income, a franchise tax for
11    the privilege of doing business, or a corporate stock tax;
12    or
13        (2) That state has jurisdiction to subject the taxpayer
14    to a net income tax regardless of whether, in fact, the
15    state does or does not.
16    (g) Cross references.
17        (1) For allocation of interest and dividends by persons
18    other than residents, see Section 301(c)(2).
19        (2) For allocation of nonbusiness income by residents,
20    see Section 301(a).
21(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
 
22    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
23    Sec. 304. Business income of persons other than residents.
24    (a) In general. The business income of a person other than
25a resident shall be allocated to this State if such person's

 

 

10100SB0690ham003- 401 -LRB101 04451 SMS 61572 a

1business income is derived solely from this State. If a person
2other than a resident derives business income from this State
3and one or more other states, then, for tax years ending on or
4before December 30, 1998, and except as otherwise provided by
5this Section, such person's business income shall be
6apportioned to this State by multiplying the income by a
7fraction, the numerator of which is the sum of the property
8factor (if any), the payroll factor (if any) and 200% of the
9sales factor (if any), and the denominator of which is 4
10reduced by the number of factors other than the sales factor
11which have a denominator of zero and by an additional 2 if the
12sales factor has a denominator of zero. For tax years ending on
13or after December 31, 1998, and except as otherwise provided by
14this Section, persons other than residents who derive business
15income from this State and one or more other states shall
16compute their apportionment factor by weighting their
17property, payroll, and sales factors as provided in subsection
18(h) of this Section.
19    (1) Property factor.
20        (A) The property factor is a fraction, the numerator of
21    which is the average value of the person's real and
22    tangible personal property owned or rented and used in the
23    trade or business in this State during the taxable year and
24    the denominator of which is the average value of all the
25    person's real and tangible personal property owned or
26    rented and used in the trade or business during the taxable

 

 

10100SB0690ham003- 402 -LRB101 04451 SMS 61572 a

1    year.
2        (B) Property owned by the person is valued at its
3    original cost. Property rented by the person is valued at 8
4    times the net annual rental rate. Net annual rental rate is
5    the annual rental rate paid by the person less any annual
6    rental rate received by the person from sub-rentals.
7        (C) The average value of property shall be determined
8    by averaging the values at the beginning and ending of the
9    taxable year but the Director may require the averaging of
10    monthly values during the taxable year if reasonably
11    required to reflect properly the average value of the
12    person's property.
13    (2) Payroll factor.
14        (A) The payroll factor is a fraction, the numerator of
15    which is the total amount paid in this State during the
16    taxable year by the person for compensation, and the
17    denominator of which is the total compensation paid
18    everywhere during the taxable year.
19        (B) Compensation is paid in this State if:
20            (i) The individual's service is performed entirely
21        within this State;
22            (ii) The individual's service is performed both
23        within and without this State, but the service
24        performed without this State is incidental to the
25        individual's service performed within this State; or
26            (iii) Some of the service is performed within this

 

 

10100SB0690ham003- 403 -LRB101 04451 SMS 61572 a

1        State and either the base of operations, or if there is
2        no base of operations, the place from which the service
3        is directed or controlled is within this State, or the
4        base of operations or the place from which the service
5        is directed or controlled is not in any state in which
6        some part of the service is performed, but the
7        individual's residence is in this State.
8            (iv) Compensation paid to nonresident professional
9        athletes.
10            (a) General. The Illinois source income of a
11        nonresident individual who is a member of a
12        professional athletic team includes the portion of the
13        individual's total compensation for services performed
14        as a member of a professional athletic team during the
15        taxable year which the number of duty days spent within
16        this State performing services for the team in any
17        manner during the taxable year bears to the total
18        number of duty days spent both within and without this
19        State during the taxable year.
20            (b) Travel days. Travel days that do not involve
21        either a game, practice, team meeting, or other similar
22        team event are not considered duty days spent in this
23        State. However, such travel days are considered in the
24        total duty days spent both within and without this
25        State.
26            (c) Definitions. For purposes of this subpart

 

 

10100SB0690ham003- 404 -LRB101 04451 SMS 61572 a

1        (iv):
2                (1) The term "professional athletic team"
3            includes, but is not limited to, any professional
4            baseball, basketball, football, soccer, or hockey
5            team.
6                (2) The term "member of a professional
7            athletic team" includes those employees who are
8            active players, players on the disabled list, and
9            any other persons required to travel and who travel
10            with and perform services on behalf of a
11            professional athletic team on a regular basis.
12            This includes, but is not limited to, coaches,
13            managers, and trainers.
14                (3) Except as provided in items (C) and (D) of
15            this subpart (3), the term "duty days" means all
16            days during the taxable year from the beginning of
17            the professional athletic team's official
18            pre-season training period through the last game
19            in which the team competes or is scheduled to
20            compete. Duty days shall be counted for the year in
21            which they occur, including where a team's
22            official pre-season training period through the
23            last game in which the team competes or is
24            scheduled to compete, occurs during more than one
25            tax year.
26                    (A) Duty days shall also include days on

 

 

10100SB0690ham003- 405 -LRB101 04451 SMS 61572 a

1                which a member of a professional athletic team
2                performs service for a team on a date that does
3                not fall within the foregoing period (e.g.,
4                participation in instructional leagues, the
5                "All Star Game", or promotional "caravans").
6                Performing a service for a professional
7                athletic team includes conducting training and
8                rehabilitation activities, when such
9                activities are conducted at team facilities.
10                    (B) Also included in duty days are game
11                days, practice days, days spent at team
12                meetings, promotional caravans, preseason
13                training camps, and days served with the team
14                through all post-season games in which the team
15                competes or is scheduled to compete.
16                    (C) Duty days for any person who joins a
17                team during the period from the beginning of
18                the professional athletic team's official
19                pre-season training period through the last
20                game in which the team competes, or is
21                scheduled to compete, shall begin on the day
22                that person joins the team. Conversely, duty
23                days for any person who leaves a team during
24                this period shall end on the day that person
25                leaves the team. Where a person switches teams
26                during a taxable year, a separate duty-day

 

 

10100SB0690ham003- 406 -LRB101 04451 SMS 61572 a

1                calculation shall be made for the period the
2                person was with each team.
3                    (D) Days for which a member of a
4                professional athletic team is not compensated
5                and is not performing services for the team in
6                any manner, including days when such member of
7                a professional athletic team has been
8                suspended without pay and prohibited from
9                performing any services for the team, shall not
10                be treated as duty days.
11                    (E) Days for which a member of a
12                professional athletic team is on the disabled
13                list and does not conduct rehabilitation
14                activities at facilities of the team, and is
15                not otherwise performing services for the team
16                in Illinois, shall not be considered duty days
17                spent in this State. All days on the disabled
18                list, however, are considered to be included in
19                total duty days spent both within and without
20                this State.
21                (4) The term "total compensation for services
22            performed as a member of a professional athletic
23            team" means the total compensation received during
24            the taxable year for services performed:
25                    (A) from the beginning of the official
26                pre-season training period through the last

 

 

10100SB0690ham003- 407 -LRB101 04451 SMS 61572 a

1                game in which the team competes or is scheduled
2                to compete during that taxable year; and
3                    (B) during the taxable year on a date which
4                does not fall within the foregoing period
5                (e.g., participation in instructional leagues,
6                the "All Star Game", or promotional caravans).
7                This compensation shall include, but is not
8            limited to, salaries, wages, bonuses as described
9            in this subpart, and any other type of compensation
10            paid during the taxable year to a member of a
11            professional athletic team for services performed
12            in that year. This compensation does not include
13            strike benefits, severance pay, termination pay,
14            contract or option year buy-out payments,
15            expansion or relocation payments, or any other
16            payments not related to services performed for the
17            team.
18                For purposes of this subparagraph, "bonuses"
19            included in "total compensation for services
20            performed as a member of a professional athletic
21            team" subject to the allocation described in
22            Section 302(c)(1) are: bonuses earned as a result
23            of play (i.e., performance bonuses) during the
24            season, including bonuses paid for championship,
25            playoff or "bowl" games played by a team, or for
26            selection to all-star league or other honorary

 

 

10100SB0690ham003- 408 -LRB101 04451 SMS 61572 a

1            positions; and bonuses paid for signing a
2            contract, unless the payment of the signing bonus
3            is not conditional upon the signee playing any
4            games for the team or performing any subsequent
5            services for the team or even making the team, the
6            signing bonus is payable separately from the
7            salary and any other compensation, and the signing
8            bonus is nonrefundable.
9    (3) Sales factor.
10        (A) The sales factor is a fraction, the numerator of
11    which is the total sales of the person in this State during
12    the taxable year, and the denominator of which is the total
13    sales of the person everywhere during the taxable year.
14        (B) Sales of tangible personal property are in this
15    State if:
16            (i) The property is delivered or shipped to a
17        purchaser, other than the United States government,
18        within this State regardless of the f. o. b. point or
19        other conditions of the sale; or
20            (ii) The property is shipped from an office, store,
21        warehouse, factory or other place of storage in this
22        State and either the purchaser is the United States
23        government or the person is not taxable in the state of
24        the purchaser; provided, however, that premises owned
25        or leased by a person who has independently contracted
26        with the seller for the printing of newspapers,

 

 

10100SB0690ham003- 409 -LRB101 04451 SMS 61572 a

1        periodicals or books shall not be deemed to be an
2        office, store, warehouse, factory or other place of
3        storage for purposes of this Section. Sales of tangible
4        personal property are not in this State if the seller
5        and purchaser would be members of the same unitary
6        business group but for the fact that either the seller
7        or purchaser is a person with 80% or more of total
8        business activity outside of the United States and the
9        property is purchased for resale.
10        (B-1) Patents, copyrights, trademarks, and similar
11    items of intangible personal property.
12            (i) Gross receipts from the licensing, sale, or
13        other disposition of a patent, copyright, trademark,
14        or similar item of intangible personal property, other
15        than gross receipts governed by paragraph (B-7) of this
16        item (3), are in this State to the extent the item is
17        utilized in this State during the year the gross
18        receipts are included in gross income.
19            (ii) Place of utilization.
20                (I) A patent is utilized in a state to the
21            extent that it is employed in production,
22            fabrication, manufacturing, or other processing in
23            the state or to the extent that a patented product
24            is produced in the state. If a patent is utilized
25            in more than one state, the extent to which it is
26            utilized in any one state shall be a fraction equal

 

 

10100SB0690ham003- 410 -LRB101 04451 SMS 61572 a

1            to the gross receipts of the licensee or purchaser
2            from sales or leases of items produced,
3            fabricated, manufactured, or processed within that
4            state using the patent and of patented items
5            produced within that state, divided by the total of
6            such gross receipts for all states in which the
7            patent is utilized.
8                (II) A copyright is utilized in a state to the
9            extent that printing or other publication
10            originates in the state. If a copyright is utilized
11            in more than one state, the extent to which it is
12            utilized in any one state shall be a fraction equal
13            to the gross receipts from sales or licenses of
14            materials printed or published in that state
15            divided by the total of such gross receipts for all
16            states in which the copyright is utilized.
17                (III) Trademarks and other items of intangible
18            personal property governed by this paragraph (B-1)
19            are utilized in the state in which the commercial
20            domicile of the licensee or purchaser is located.
21            (iii) If the state of utilization of an item of
22        property governed by this paragraph (B-1) cannot be
23        determined from the taxpayer's books and records or
24        from the books and records of any person related to the
25        taxpayer within the meaning of Section 267(b) of the
26        Internal Revenue Code, 26 U.S.C. 267, the gross

 

 

10100SB0690ham003- 411 -LRB101 04451 SMS 61572 a

1        receipts attributable to that item shall be excluded
2        from both the numerator and the denominator of the
3        sales factor.
4        (B-2) Gross receipts from the license, sale, or other
5    disposition of patents, copyrights, trademarks, and
6    similar items of intangible personal property, other than
7    gross receipts governed by paragraph (B-7) of this item
8    (3), may be included in the numerator or denominator of the
9    sales factor only if gross receipts from licenses, sales,
10    or other disposition of such items comprise more than 50%
11    of the taxpayer's total gross receipts included in gross
12    income during the tax year and during each of the 2
13    immediately preceding tax years; provided that, when a
14    taxpayer is a member of a unitary business group, such
15    determination shall be made on the basis of the gross
16    receipts of the entire unitary business group.
17        (B-5) For taxable years ending on or after December 31,
18    2008, except as provided in subsections (ii) through (vii),
19    receipts from the sale of telecommunications service or
20    mobile telecommunications service are in this State if the
21    customer's service address is in this State.
22            (i) For purposes of this subparagraph (B-5), the
23        following terms have the following meanings:
24            "Ancillary services" means services that are
25        associated with or incidental to the provision of
26        "telecommunications services", including but not

 

 

10100SB0690ham003- 412 -LRB101 04451 SMS 61572 a

1        limited to "detailed telecommunications billing",
2        "directory assistance", "vertical service", and "voice
3        mail services".
4            "Air-to-Ground Radiotelephone service" means a
5        radio service, as that term is defined in 47 CFR 22.99,
6        in which common carriers are authorized to offer and
7        provide radio telecommunications service for hire to
8        subscribers in aircraft.
9            "Call-by-call Basis" means any method of charging
10        for telecommunications services where the price is
11        measured by individual calls.
12            "Communications Channel" means a physical or
13        virtual path of communications over which signals are
14        transmitted between or among customer channel
15        termination points.
16            "Conference bridging service" means an "ancillary
17        service" that links two or more participants of an
18        audio or video conference call and may include the
19        provision of a telephone number. "Conference bridging
20        service" does not include the "telecommunications
21        services" used to reach the conference bridge.
22            "Customer Channel Termination Point" means the
23        location where the customer either inputs or receives
24        the communications.
25            "Detailed telecommunications billing service"
26        means an "ancillary service" of separately stating

 

 

10100SB0690ham003- 413 -LRB101 04451 SMS 61572 a

1        information pertaining to individual calls on a
2        customer's billing statement.
3            "Directory assistance" means an "ancillary
4        service" of providing telephone number information,
5        and/or address information.
6            "Home service provider" means the facilities based
7        carrier or reseller with which the customer contracts
8        for the provision of mobile telecommunications
9        services.
10            "Mobile telecommunications service" means
11        commercial mobile radio service, as defined in Section
12        20.3 of Title 47 of the Code of Federal Regulations as
13        in effect on June 1, 1999.
14            "Place of primary use" means the street address
15        representative of where the customer's use of the
16        telecommunications service primarily occurs, which
17        must be the residential street address or the primary
18        business street address of the customer. In the case of
19        mobile telecommunications services, "place of primary
20        use" must be within the licensed service area of the
21        home service provider.
22            "Post-paid telecommunication service" means the
23        telecommunications service obtained by making a
24        payment on a call-by-call basis either through the use
25        of a credit card or payment mechanism such as a bank
26        card, travel card, credit card, or debit card, or by

 

 

10100SB0690ham003- 414 -LRB101 04451 SMS 61572 a

1        charge made to a telephone number which is not
2        associated with the origination or termination of the
3        telecommunications service. A post-paid calling
4        service includes telecommunications service, except a
5        prepaid wireless calling service, that would be a
6        prepaid calling service except it is not exclusively a
7        telecommunication service.
8            "Prepaid telecommunication service" means the
9        right to access exclusively telecommunications
10        services, which must be paid for in advance and which
11        enables the origination of calls using an access number
12        or authorization code, whether manually or
13        electronically dialed, and that is sold in
14        predetermined units or dollars of which the number
15        declines with use in a known amount.
16            "Prepaid Mobile telecommunication service" means a
17        telecommunications service that provides the right to
18        utilize mobile wireless service as well as other
19        non-telecommunication services, including but not
20        limited to ancillary services, which must be paid for
21        in advance that is sold in predetermined units or
22        dollars of which the number declines with use in a
23        known amount.
24            "Private communication service" means a
25        telecommunication service that entitles the customer
26        to exclusive or priority use of a communications

 

 

10100SB0690ham003- 415 -LRB101 04451 SMS 61572 a

1        channel or group of channels between or among
2        termination points, regardless of the manner in which
3        such channel or channels are connected, and includes
4        switching capacity, extension lines, stations, and any
5        other associated services that are provided in
6        connection with the use of such channel or channels.
7            "Service address" means:
8                (a) The location of the telecommunications
9            equipment to which a customer's call is charged and
10            from which the call originates or terminates,
11            regardless of where the call is billed or paid;
12                (b) If the location in line (a) is not known,
13            service address means the origination point of the
14            signal of the telecommunications services first
15            identified by either the seller's
16            telecommunications system or in information
17            received by the seller from its service provider
18            where the system used to transport such signals is
19            not that of the seller; and
20                (c) If the locations in line (a) and line (b)
21            are not known, the service address means the
22            location of the customer's place of primary use.
23            "Telecommunications service" means the electronic
24        transmission, conveyance, or routing of voice, data,
25        audio, video, or any other information or signals to a
26        point, or between or among points. The term

 

 

10100SB0690ham003- 416 -LRB101 04451 SMS 61572 a

1        "telecommunications service" includes such
2        transmission, conveyance, or routing in which computer
3        processing applications are used to act on the form,
4        code or protocol of the content for purposes of
5        transmission, conveyance or routing without regard to
6        whether such service is referred to as voice over
7        Internet protocol services or is classified by the
8        Federal Communications Commission as enhanced or value
9        added. "Telecommunications service" does not include:
10                (a) Data processing and information services
11            that allow data to be generated, acquired, stored,
12            processed, or retrieved and delivered by an
13            electronic transmission to a purchaser when such
14            purchaser's primary purpose for the underlying
15            transaction is the processed data or information;
16                (b) Installation or maintenance of wiring or
17            equipment on a customer's premises;
18                (c) Tangible personal property;
19                (d) Advertising, including but not limited to
20            directory advertising;
21                (e) Billing and collection services provided
22            to third parties;
23                (f) Internet access service;
24                (g) Radio and television audio and video
25            programming services, regardless of the medium,
26            including the furnishing of transmission,

 

 

10100SB0690ham003- 417 -LRB101 04451 SMS 61572 a

1            conveyance and routing of such services by the
2            programming service provider. Radio and television
3            audio and video programming services shall include
4            but not be limited to cable service as defined in
5            47 USC 522(6) and audio and video programming
6            services delivered by commercial mobile radio
7            service providers, as defined in 47 CFR 20.3;
8                (h) "Ancillary services"; or
9                (i) Digital products "delivered
10            electronically", including but not limited to
11            software, music, video, reading materials or ring
12            tones.
13            "Vertical service" means an "ancillary service"
14        that is offered in connection with one or more
15        "telecommunications services", which offers advanced
16        calling features that allow customers to identify
17        callers and to manage multiple calls and call
18        connections, including "conference bridging services".
19            "Voice mail service" means an "ancillary service"
20        that enables the customer to store, send or receive
21        recorded messages. "Voice mail service" does not
22        include any "vertical services" that the customer may
23        be required to have in order to utilize the "voice mail
24        service".
25            (ii) Receipts from the sale of telecommunications
26        service sold on an individual call-by-call basis are in

 

 

10100SB0690ham003- 418 -LRB101 04451 SMS 61572 a

1        this State if either of the following applies:
2                (a) The call both originates and terminates in
3            this State.
4                (b) The call either originates or terminates
5            in this State and the service address is located in
6            this State.
7            (iii) Receipts from the sale of postpaid
8        telecommunications service at retail are in this State
9        if the origination point of the telecommunication
10        signal, as first identified by the service provider's
11        telecommunication system or as identified by
12        information received by the seller from its service
13        provider if the system used to transport
14        telecommunication signals is not the seller's, is
15        located in this State.
16            (iv) Receipts from the sale of prepaid
17        telecommunications service or prepaid mobile
18        telecommunications service at retail are in this State
19        if the purchaser obtains the prepaid card or similar
20        means of conveyance at a location in this State.
21        Receipts from recharging a prepaid telecommunications
22        service or mobile telecommunications service is in
23        this State if the purchaser's billing information
24        indicates a location in this State.
25            (v) Receipts from the sale of private
26        communication services are in this State as follows:

 

 

10100SB0690ham003- 419 -LRB101 04451 SMS 61572 a

1                (a) 100% of receipts from charges imposed at
2            each channel termination point in this State.
3                (b) 100% of receipts from charges for the total
4            channel mileage between each channel termination
5            point in this State.
6                (c) 50% of the total receipts from charges for
7            service segments when those segments are between 2
8            customer channel termination points, 1 of which is
9            located in this State and the other is located
10            outside of this State, which segments are
11            separately charged.
12                (d) The receipts from charges for service
13            segments with a channel termination point located
14            in this State and in two or more other states, and
15            which segments are not separately billed, are in
16            this State based on a percentage determined by
17            dividing the number of customer channel
18            termination points in this State by the total
19            number of customer channel termination points.
20            (vi) Receipts from charges for ancillary services
21        for telecommunications service sold to customers at
22        retail are in this State if the customer's primary
23        place of use of telecommunications services associated
24        with those ancillary services is in this State. If the
25        seller of those ancillary services cannot determine
26        where the associated telecommunications are located,

 

 

10100SB0690ham003- 420 -LRB101 04451 SMS 61572 a

1        then the ancillary services shall be based on the
2        location of the purchaser.
3            (vii) Receipts to access a carrier's network or
4        from the sale of telecommunication services or
5        ancillary services for resale are in this State as
6        follows:
7                (a) 100% of the receipts from access fees
8            attributable to intrastate telecommunications
9            service that both originates and terminates in
10            this State.
11                (b) 50% of the receipts from access fees
12            attributable to interstate telecommunications
13            service if the interstate call either originates
14            or terminates in this State.
15                (c) 100% of the receipts from interstate end
16            user access line charges, if the customer's
17            service address is in this State. As used in this
18            subdivision, "interstate end user access line
19            charges" includes, but is not limited to, the
20            surcharge approved by the federal communications
21            commission and levied pursuant to 47 CFR 69.
22                (d) Gross receipts from sales of
23            telecommunication services or from ancillary
24            services for telecommunications services sold to
25            other telecommunication service providers for
26            resale shall be sourced to this State using the

 

 

10100SB0690ham003- 421 -LRB101 04451 SMS 61572 a

1            apportionment concepts used for non-resale
2            receipts of telecommunications services if the
3            information is readily available to make that
4            determination. If the information is not readily
5            available, then the taxpayer may use any other
6            reasonable and consistent method.
7        (B-7) For taxable years ending on or after December 31,
8    2008, receipts from the sale of broadcasting services are
9    in this State if the broadcasting services are received in
10    this State. For purposes of this paragraph (B-7), the
11    following terms have the following meanings:
12            "Advertising revenue" means consideration received
13        by the taxpayer in exchange for broadcasting services
14        or allowing the broadcasting of commercials or
15        announcements in connection with the broadcasting of
16        film or radio programming, from sponsorships of the
17        programming, or from product placements in the
18        programming.
19            "Audience factor" means the ratio that the
20        audience or subscribers located in this State of a
21        station, a network, or a cable system bears to the
22        total audience or total subscribers for that station,
23        network, or cable system. The audience factor for film
24        or radio programming shall be determined by reference
25        to the books and records of the taxpayer or by
26        reference to published rating statistics provided the

 

 

10100SB0690ham003- 422 -LRB101 04451 SMS 61572 a

1        method used by the taxpayer is consistently used from
2        year to year for this purpose and fairly represents the
3        taxpayer's activity in this State.
4            "Broadcast" or "broadcasting" or "broadcasting
5        services" means the transmission or provision of film
6        or radio programming, whether through the public
7        airwaves, by cable, by direct or indirect satellite
8        transmission, or by any other means of communication,
9        either through a station, a network, or a cable system.
10            "Film" or "film programming" means the broadcast
11        on television of any and all performances, events, or
12        productions, including but not limited to news,
13        sporting events, plays, stories, or other literary,
14        commercial, educational, or artistic works, either
15        live or through the use of video tape, disc, or any
16        other type of format or medium. Each episode of a
17        series of films produced for television shall
18        constitute separate "film" notwithstanding that the
19        series relates to the same principal subject and is
20        produced during one or more tax periods.
21            "Radio" or "radio programming" means the broadcast
22        on radio 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 an audio tape, disc, or any

 

 

10100SB0690ham003- 423 -LRB101 04451 SMS 61572 a

1        other format or medium. Each episode in a series of
2        radio programming produced for radio broadcast shall
3        constitute a separate "radio programming"
4        notwithstanding that the series relates to the same
5        principal subject and is produced during one or more
6        tax periods.
7                (i) In the case of advertising revenue from
8            broadcasting, the customer is the advertiser and
9            the service is received in this State if the
10            commercial domicile of the advertiser is in this
11            State.
12                (ii) In the case where film or radio
13            programming is broadcast by a station, a network,
14            or a cable system for a fee or other remuneration
15            received from the recipient of the broadcast, the
16            portion of the service that is received in this
17            State is measured by the portion of the recipients
18            of the broadcast located in this State.
19            Accordingly, the fee or other remuneration for
20            such service that is included in the Illinois
21            numerator of the sales factor is the total of those
22            fees or other remuneration received from
23            recipients in Illinois. For purposes of this
24            paragraph, a taxpayer may determine the location
25            of the recipients of its broadcast using the
26            address of the recipient shown in its contracts

 

 

10100SB0690ham003- 424 -LRB101 04451 SMS 61572 a

1            with the recipient or using the billing address of
2            the recipient in the taxpayer's records.
3                (iii) In the case where film or radio
4            programming is broadcast by a station, a network,
5            or a cable system for a fee or other remuneration
6            from the person providing the programming, the
7            portion of the broadcast service that is received
8            by such station, network, or cable system in this
9            State is measured by the portion of recipients of
10            the broadcast located in this State. Accordingly,
11            the amount of revenue related to such an
12            arrangement that is included in the Illinois
13            numerator of the sales factor is the total fee or
14            other total remuneration from the person providing
15            the programming related to that broadcast
16            multiplied by the Illinois audience factor for
17            that broadcast.
18                (iv) In the case where film or radio
19            programming is provided by a taxpayer that is a
20            network or station to a customer for broadcast in
21            exchange for a fee or other remuneration from that
22            customer the broadcasting service is received at
23            the location of the office of the customer from
24            which the services were ordered in the regular
25            course of the customer's trade or business.
26            Accordingly, in such a case the revenue derived by

 

 

10100SB0690ham003- 425 -LRB101 04451 SMS 61572 a

1            the taxpayer that is included in the taxpayer's
2            Illinois numerator of the sales factor is the
3            revenue from such customers who receive the
4            broadcasting service in Illinois.
5                (v) In the case where film or radio programming
6            is provided by a taxpayer that is not a network or
7            station to another person for broadcasting in
8            exchange for a fee or other remuneration from that
9            person, the broadcasting service is received at
10            the location of the office of the customer from
11            which the services were ordered in the regular
12            course of the customer's trade or business.
13            Accordingly, in such a case the revenue derived by
14            the taxpayer that is included in the taxpayer's
15            Illinois numerator of the sales factor is the
16            revenue from such customers who receive the
17            broadcasting service in Illinois.
18        (B-8) Gross receipts from winnings under the Illinois
19    Lottery Law from the assignment of a prize under Section
20    13.1 of the Illinois Lottery Law are received in this
21    State. This paragraph (B-8) applies only to taxable years
22    ending on or after December 31, 2013.
23        (B-9) For taxable years ending on or after December 31,
24    2019, gross receipts from winnings from pari-mutuel
25    wagering conducted at a wagering facility licensed under
26    the Illinois Horse Racing Act of 1975 or from winnings from

 

 

10100SB0690ham003- 426 -LRB101 04451 SMS 61572 a

1    gambling games conducted on a riverboat or in a casino or
2    organization gaming facility licensed under the Illinois
3    Gambling Act are in this State.
4        (C) For taxable years ending before December 31, 2008,
5    sales, other than sales governed by paragraphs (B), (B-1),
6    (B-2), and (B-8) are in this State if:
7            (i) The income-producing activity is performed in
8        this State; or
9            (ii) The income-producing activity is performed
10        both within and without this State and a greater
11        proportion of the income-producing activity is
12        performed within this State than without this State,
13        based on performance costs.
14        (C-5) For taxable years ending on or after December 31,
15    2008, sales, other than sales governed by paragraphs (B),
16    (B-1), (B-2), (B-5), and (B-7), are in this State if any of
17    the following criteria are met:
18            (i) Sales from the sale or lease of real property
19        are in this State if the property is located in this
20        State.
21            (ii) Sales from the lease or rental of tangible
22        personal property are in this State if the property is
23        located in this State during the rental period. Sales
24        from the lease or rental of tangible personal property
25        that is characteristically moving property, including,
26        but not limited to, motor vehicles, rolling stock,

 

 

10100SB0690ham003- 427 -LRB101 04451 SMS 61572 a

1        aircraft, vessels, or mobile equipment are in this
2        State to the extent that the property is used in this
3        State.
4            (iii) In the case of interest, net gains (but not
5        less than zero) and other items of income from
6        intangible personal property, the sale is in this State
7        if:
8                (a) in the case of a taxpayer who is a dealer
9            in the item of intangible personal property within
10            the meaning of Section 475 of the Internal Revenue
11            Code, the income or gain is received from a
12            customer in this State. For purposes of this
13            subparagraph, a customer is in this State if the
14            customer is an individual, trust or estate who is a
15            resident of this State and, for all other
16            customers, if the customer's commercial domicile
17            is in this State. Unless the dealer has actual
18            knowledge of the residence or commercial domicile
19            of a customer during a taxable year, the customer
20            shall be deemed to be a customer in this State if
21            the billing address of the customer, as shown in
22            the records of the dealer, is in this State; or
23                (b) in all other cases, if the
24            income-producing activity of the taxpayer is
25            performed in this State or, if the
26            income-producing activity of the taxpayer is

 

 

10100SB0690ham003- 428 -LRB101 04451 SMS 61572 a

1            performed both within and without this State, if a
2            greater proportion of the income-producing
3            activity of the taxpayer is performed within this
4            State than in any other state, based on performance
5            costs.
6            (iv) Sales of services are in this State if the
7        services are received in this State. For the purposes
8        of this section, gross receipts from the performance of
9        services provided to a corporation, partnership, or
10        trust may only be attributed to a state where that
11        corporation, partnership, or trust has a fixed place of
12        business. If the state where the services are received
13        is not readily determinable or is a state where the
14        corporation, partnership, or trust receiving the
15        service does not have a fixed place of business, the
16        services shall be deemed to be received at the location
17        of the office of the customer from which the services
18        were ordered in the regular course of the customer's
19        trade or business. If the ordering office cannot be
20        determined, the services shall be deemed to be received
21        at the office of the customer to which the services are
22        billed. If the taxpayer is not taxable in the state in
23        which the services are received, the sale must be
24        excluded from both the numerator and the denominator of
25        the sales factor. The Department shall adopt rules
26        prescribing where specific types of service are

 

 

10100SB0690ham003- 429 -LRB101 04451 SMS 61572 a

1        received, including, but not limited to, publishing,
2        and utility service.
3        (D) For taxable years ending on or after December 31,
4    1995, the following items of income shall not be included
5    in the numerator or denominator of the sales factor:
6    dividends; amounts included under Section 78 of the
7    Internal Revenue Code; and Subpart F income as defined in
8    Section 952 of the Internal Revenue Code. No inference
9    shall be drawn from the enactment of this paragraph (D) in
10    construing this Section for taxable years ending before
11    December 31, 1995.
12        (E) Paragraphs (B-1) and (B-2) shall apply to tax years
13    ending on or after December 31, 1999, provided that a
14    taxpayer may elect to apply the provisions of these
15    paragraphs to prior tax years. Such election shall be made
16    in the form and manner prescribed by the Department, shall
17    be irrevocable, and shall apply to all tax years; provided
18    that, if a taxpayer's Illinois income tax liability for any
19    tax year, as assessed under Section 903 prior to January 1,
20    1999, was computed in a manner contrary to the provisions
21    of paragraphs (B-1) or (B-2), no refund shall be payable to
22    the taxpayer for that tax year to the extent such refund is
23    the result of applying the provisions of paragraph (B-1) or
24    (B-2) retroactively. In the case of a unitary business
25    group, such election shall apply to all members of such
26    group for every tax year such group is in existence, but

 

 

10100SB0690ham003- 430 -LRB101 04451 SMS 61572 a

1    shall not apply to any taxpayer for any period during which
2    that taxpayer is not a member of such group.
3    (b) Insurance companies.
4        (1) In general. Except as otherwise provided by
5    paragraph (2), business income of an insurance company for
6    a taxable year shall be apportioned to this State by
7    multiplying such income by a fraction, the numerator of
8    which is the direct premiums written for insurance upon
9    property or risk in this State, and the denominator of
10    which is the direct premiums written for insurance upon
11    property or risk everywhere. For purposes of this
12    subsection, the term "direct premiums written" means the
13    total amount of direct premiums written, assessments and
14    annuity considerations as reported for the taxable year on
15    the annual statement filed by the company with the Illinois
16    Director of Insurance in the form approved by the National
17    Convention of Insurance Commissioners or such other form as
18    may be prescribed in lieu thereof.
19        (2) Reinsurance. If the principal source of premiums
20    written by an insurance company consists of premiums for
21    reinsurance accepted by it, the business income of such
22    company shall be apportioned to this State by multiplying
23    such income by a fraction, the numerator of which is the
24    sum of (i) direct premiums written for insurance upon
25    property or risk in this State, plus (ii) premiums written
26    for reinsurance accepted in respect of property or risk in

 

 

10100SB0690ham003- 431 -LRB101 04451 SMS 61572 a

1    this State, and the denominator of which is the sum of
2    (iii) direct premiums written for insurance upon property
3    or risk everywhere, plus (iv) premiums written for
4    reinsurance accepted in respect of property or risk
5    everywhere. For purposes of this paragraph, premiums
6    written for reinsurance accepted in respect of property or
7    risk in this State, whether or not otherwise determinable,
8    may, at the election of the company, be determined on the
9    basis of the proportion which premiums written for
10    reinsurance accepted from companies commercially domiciled
11    in Illinois bears to premiums written for reinsurance
12    accepted from all sources, or, alternatively, in the
13    proportion which the sum of the direct premiums written for
14    insurance upon property or risk in this State by each
15    ceding company from which reinsurance is accepted bears to
16    the sum of the total direct premiums written by each such
17    ceding company for the taxable year. The election made by a
18    company under this paragraph for its first taxable year
19    ending on or after December 31, 2011, shall be binding for
20    that company for that taxable year and for all subsequent
21    taxable years, and may be altered only with the written
22    permission of the Department, which shall not be
23    unreasonably withheld.
24    (c) Financial organizations.
25        (1) In general. For taxable years ending before
26    December 31, 2008, business income of a financial

 

 

10100SB0690ham003- 432 -LRB101 04451 SMS 61572 a

1    organization shall be apportioned to this State by
2    multiplying such income by a fraction, the numerator of
3    which is its business income from sources within this
4    State, and the denominator of which is its business income
5    from all sources. For the purposes of this subsection, the
6    business income of a financial organization from sources
7    within this State is the sum of the amounts referred to in
8    subparagraphs (A) through (E) following, but excluding the
9    adjusted income of an international banking facility as
10    determined in paragraph (2):
11            (A) Fees, commissions or other compensation for
12        financial services rendered within this State;
13            (B) Gross profits from trading in stocks, bonds or
14        other securities managed within this State;
15            (C) Dividends, and interest from Illinois
16        customers, which are received within this State;
17            (D) Interest charged to customers at places of
18        business maintained within this State for carrying
19        debit balances of margin accounts, without deduction
20        of any costs incurred in carrying such accounts; and
21            (E) Any other gross income resulting from the
22        operation as a financial organization within this
23        State. In computing the amounts referred to in
24        paragraphs (A) through (E) of this subsection, any
25        amount received by a member of an affiliated group
26        (determined under Section 1504(a) of the Internal

 

 

10100SB0690ham003- 433 -LRB101 04451 SMS 61572 a

1        Revenue Code but without reference to whether any such
2        corporation is an "includible corporation" under
3        Section 1504(b) of the Internal Revenue Code) from
4        another member of such group shall be included only to
5        the extent such amount exceeds expenses of the
6        recipient directly related thereto.
7        (2) International Banking Facility. For taxable years
8    ending before December 31, 2008:
9            (A) Adjusted Income. The adjusted income of an
10        international banking facility is its income reduced
11        by the amount of the floor amount.
12            (B) Floor Amount. The floor amount shall be the
13        amount, if any, determined by multiplying the income of
14        the international banking facility by a fraction, not
15        greater than one, which is determined as follows:
16                (i) The numerator shall be:
17                The average aggregate, determined on a
18            quarterly basis, of the financial organization's
19            loans to banks in foreign countries, to foreign
20            domiciled borrowers (except where secured
21            primarily by real estate) and to foreign
22            governments and other foreign official
23            institutions, as reported for its branches,
24            agencies and offices within the state on its
25            "Consolidated Report of Condition", Schedule A,
26            Lines 2.c., 5.b., and 7.a., which was filed with

 

 

10100SB0690ham003- 434 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 435 -LRB101 04451 SMS 61572 a

1        is altered so that the information required for
2        determining the floor amount is not found on Schedule
3        A, lines 2.c., 5.b. and 7.a., the financial institution
4        shall notify the Department and the Department may, by
5        regulations or otherwise, prescribe or authorize the
6        use of an alternative source for such information. The
7        financial institution shall also notify the Department
8        should its international banking facility fail to
9        qualify as such, in whole or in part, or should there
10        be any amendment or change to the Consolidated Report
11        of Condition, as originally filed, to the extent such
12        amendment or change alters the information used in
13        determining the floor amount.
14        (3) For taxable years ending on or after December 31,
15    2008, the business income of a financial organization shall
16    be apportioned to this State by multiplying such income by
17    a fraction, the numerator of which is its gross receipts
18    from sources in this State or otherwise attributable to
19    this State's marketplace and the denominator of which is
20    its gross receipts everywhere during the taxable year.
21    "Gross receipts" for purposes of this subparagraph (3)
22    means gross income, including net taxable gain on
23    disposition of assets, including securities and money
24    market instruments, when derived from transactions and
25    activities in the regular course of the financial
26    organization's trade or business. The following examples

 

 

10100SB0690ham003- 436 -LRB101 04451 SMS 61572 a

1    are illustrative:
2            (i) Receipts from the lease or rental of real or
3        tangible personal property are in this State if the
4        property is located in this State during the rental
5        period. Receipts from the lease or rental of tangible
6        personal property that is characteristically moving
7        property, including, but not limited to, motor
8        vehicles, rolling stock, aircraft, vessels, or mobile
9        equipment are from sources in this State to the extent
10        that the property is used in this State.
11            (ii) Interest income, commissions, fees, gains on
12        disposition, and other receipts from assets in the
13        nature of loans that are secured primarily by real
14        estate or tangible personal property are from sources
15        in this State if the security is located in this State.
16            (iii) Interest income, commissions, fees, gains on
17        disposition, and other receipts from consumer loans
18        that are not secured by real or tangible personal
19        property are from sources in this State if the debtor
20        is a resident of this State.
21            (iv) Interest income, commissions, fees, gains on
22        disposition, and other receipts from commercial loans
23        and installment obligations that are not secured by
24        real or tangible personal property are from sources in
25        this State if the proceeds of the loan are to be
26        applied in this State. If it cannot be determined where

 

 

10100SB0690ham003- 437 -LRB101 04451 SMS 61572 a

1        the funds are to be applied, the income and receipts
2        are from sources in this State if the office of the
3        borrower from which the loan was negotiated in the
4        regular course of business is located in this State. If
5        the location of this office cannot be determined, the
6        income and receipts shall be excluded from the
7        numerator and denominator of the sales factor.
8            (v) Interest income, fees, gains on disposition,
9        service charges, merchant discount income, and other
10        receipts from credit card receivables are from sources
11        in this State if the card charges are regularly billed
12        to a customer in this State.
13            (vi) Receipts from the performance of services,
14        including, but not limited to, fiduciary, advisory,
15        and brokerage services, are in this State if the
16        services are received in this State within the meaning
17        of subparagraph (a)(3)(C-5)(iv) of this Section.
18            (vii) Receipts from the issuance of travelers
19        checks and money orders are from sources in this State
20        if the checks and money orders are issued from a
21        location within this State.
22            (viii) Receipts from investment assets and
23        activities and trading assets and activities are
24        included in the receipts factor as follows:
25                (1) Interest, dividends, net gains (but not
26            less than zero) and other income from investment

 

 

10100SB0690ham003- 438 -LRB101 04451 SMS 61572 a

1            assets and activities from trading assets and
2            activities shall be included in the receipts
3            factor. Investment assets and activities and
4            trading assets and activities include but are not
5            limited to: investment securities; trading account
6            assets; federal funds; securities purchased and
7            sold under agreements to resell or repurchase;
8            options; futures contracts; forward contracts;
9            notional principal contracts such as swaps;
10            equities; and foreign currency transactions. With
11            respect to the investment and trading assets and
12            activities described in subparagraphs (A) and (B)
13            of this paragraph, the receipts factor shall
14            include the amounts described in such
15            subparagraphs.
16                    (A) The receipts factor shall include the
17                amount by which interest from federal funds
18                sold and securities purchased under resale
19                agreements exceeds interest expense on federal
20                funds purchased and securities sold under
21                repurchase agreements.
22                    (B) The receipts factor shall include the
23                amount by which interest, dividends, gains and
24                other income from trading assets and
25                activities, including but not limited to
26                assets and activities in the matched book, in

 

 

10100SB0690ham003- 439 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 440 -LRB101 04451 SMS 61572 a

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

 

 

10100SB0690ham003- 441 -LRB101 04451 SMS 61572 a

1                of the taxpayer within this State and the
2                denominator of which is the gross income from
3                all such assets and activities.
4                    (D) Properly assigned, for purposes of
5                this paragraph (2) of this subsection, means
6                the investment or trading asset or activity is
7                assigned to the fixed place of business with
8                which it has a preponderance of substantive
9                contacts. An investment or trading asset or
10                activity assigned by the taxpayer to a fixed
11                place of business without the State shall be
12                presumed to have been properly assigned if:
13                        (i) the taxpayer has assigned, in the
14                    regular course of its business, such asset
15                    or activity on its records to a fixed place
16                    of business consistent with federal or
17                    state regulatory requirements;
18                        (ii) such assignment on its records is
19                    based upon substantive contacts of the
20                    asset or activity to such fixed place of
21                    business; and
22                        (iii) the taxpayer uses such records
23                    reflecting assignment of such assets or
24                    activities for the filing of all state and
25                    local tax returns for which an assignment
26                    of such assets or activities to a fixed

 

 

10100SB0690ham003- 442 -LRB101 04451 SMS 61572 a

1                    place of business is required.
2                    (E) The presumption of proper assignment
3                of an investment or trading asset or activity
4                provided in subparagraph (D) of paragraph (2)
5                of this subsection may be rebutted upon a
6                showing by the Department, supported by a
7                preponderance of the evidence, that the
8                preponderance of substantive contacts
9                regarding such asset or activity did not occur
10                at the fixed place of business to which it was
11                assigned on the taxpayer's records. If the
12                fixed place of business that has a
13                preponderance of substantive contacts cannot
14                be determined for an investment or trading
15                asset or activity to which the presumption in
16                subparagraph (D) of paragraph (2) of this
17                subsection does not apply or with respect to
18                which that presumption has been rebutted, that
19                asset or activity is properly assigned to the
20                state in which the taxpayer's commercial
21                domicile is located. For purposes of this
22                subparagraph (E), it shall be presumed,
23                subject to rebuttal, that taxpayer's
24                commercial domicile is in the state of the
25                United States or the District of Columbia to
26                which the greatest number of employees are

 

 

10100SB0690ham003- 443 -LRB101 04451 SMS 61572 a

1                regularly connected with the management of the
2                investment or trading income or out of which
3                they are working, irrespective of where the
4                services of such employees are performed, as of
5                the last day of the taxable year.
6        (4) (Blank).
7        (5) (Blank).
8    (c-1) Federally regulated exchanges. For taxable years
9ending on or after December 31, 2012, business income of a
10federally regulated exchange shall, at the option of the
11federally regulated exchange, be apportioned to this State by
12multiplying such income by a fraction, the numerator of which
13is its business income from sources within this State, and the
14denominator of which is its business income from all sources.
15For purposes of this subsection, the business income within
16this State of a federally regulated exchange is the sum of the
17following:
18        (1) Receipts attributable to transactions executed on
19    a physical trading floor if that physical trading floor is
20    located in this State.
21        (2) Receipts attributable to all other matching,
22    execution, or clearing transactions, including without
23    limitation receipts from the provision of matching,
24    execution, or clearing services to another entity,
25    multiplied by (i) for taxable years ending on or after
26    December 31, 2012 but before December 31, 2013, 63.77%; and

 

 

10100SB0690ham003- 444 -LRB101 04451 SMS 61572 a

1    (ii) for taxable years ending on or after December 31,
2    2013, 27.54%.
3        (3) All other receipts not governed by subparagraphs
4    (1) or (2) of this subsection (c-1), to the extent the
5    receipts would be characterized as "sales in this State"
6    under item (3) of subsection (a) of this Section.
7    "Federally regulated exchange" means (i) a "registered
8entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
9or (C), (ii) an "exchange" or "clearing agency" within the
10meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
11entities regulated under any successor regulatory structure to
12the foregoing, and (iv) all taxpayers who are members of the
13same unitary business group as a federally regulated exchange,
14determined without regard to the prohibition in Section
151501(a)(27) of this Act against including in a unitary business
16group taxpayers who are ordinarily required to apportion
17business income under different subsections of this Section;
18provided that this subparagraph (iv) shall apply only if 50% or
19more of the business receipts of the unitary business group
20determined by application of this subparagraph (iv) for the
21taxable year are attributable to the matching, execution, or
22clearing of transactions conducted by an entity described in
23subparagraph (i), (ii), or (iii) of this paragraph.
24    In no event shall the Illinois apportionment percentage
25computed in accordance with this subsection (c-1) for any
26taxpayer for any tax year be less than the Illinois

 

 

10100SB0690ham003- 445 -LRB101 04451 SMS 61572 a

1apportionment percentage computed under this subsection (c-1)
2for that taxpayer for the first full tax year ending on or
3after December 31, 2013 for which this subsection (c-1) applied
4to the taxpayer.
5    (d) Transportation services. For taxable years ending
6before December 31, 2008, business income derived from
7furnishing transportation services shall be apportioned to
8this State in accordance with paragraphs (1) and (2):
9        (1) Such business income (other than that derived from
10    transportation by pipeline) shall be apportioned to this
11    State by multiplying such income by a fraction, the
12    numerator of which is the revenue miles of the person in
13    this State, and the denominator of which is the revenue
14    miles of the person everywhere. For purposes of this
15    paragraph, a revenue mile is the transportation of 1
16    passenger or 1 net ton of freight the distance of 1 mile
17    for a consideration. Where a person is engaged in the
18    transportation of both passengers and freight, the
19    fraction above referred to shall be determined by means of
20    an average of the passenger revenue mile fraction and the
21    freight revenue mile fraction, weighted to reflect the
22    person's
23            (A) relative railway operating income from total
24        passenger and total freight service, as reported to the
25        Interstate Commerce Commission, in the case of
26        transportation by railroad, and

 

 

10100SB0690ham003- 446 -LRB101 04451 SMS 61572 a

1            (B) relative gross receipts from passenger and
2        freight transportation, in case of transportation
3        other than by railroad.
4        (2) Such business income derived from transportation
5    by pipeline shall be apportioned to this State by
6    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 the purposes of this paragraph, a revenue
10    mile is the transportation by pipeline of 1 barrel of oil,
11    1,000 cubic feet of gas, or of any specified quantity of
12    any other substance, the distance of 1 mile for a
13    consideration.
14        (3) For taxable years ending on or after December 31,
15    2008, business income derived from providing
16    transportation services other than airline services shall
17    be apportioned to this State by using a fraction, (a) the
18    numerator of which shall be (i) all receipts from any
19    movement or shipment of people, goods, mail, oil, gas, or
20    any other substance (other than by airline) that both
21    originates and terminates in this State, plus (ii) that
22    portion of the person's gross receipts from movements or
23    shipments of people, goods, mail, oil, gas, or any other
24    substance (other than by airline) that originates in one
25    state or jurisdiction and terminates in another state or
26    jurisdiction, that is determined by the ratio that the

 

 

10100SB0690ham003- 447 -LRB101 04451 SMS 61572 a

1    miles traveled in this State bears to total miles
2    everywhere and (b) the denominator of which shall be all
3    revenue derived from the movement or shipment of people,
4    goods, mail, oil, gas, or any other substance (other than
5    by airline). Where a taxpayer is engaged in the
6    transportation of both passengers and freight, the
7    fraction above referred to shall first be determined
8    separately for passenger miles and freight miles. Then an
9    average of the passenger miles fraction and the freight
10    miles fraction shall be weighted to reflect the taxpayer's:
11            (A) relative railway operating income from total
12        passenger and total freight service, as reported to the
13        Surface Transportation Board, in the case of
14        transportation by railroad; and
15            (B) relative gross receipts from passenger and
16        freight transportation, in case of transportation
17        other than by railroad.
18        (4) For taxable years ending on or after December 31,
19    2008, business income derived from furnishing airline
20    transportation services shall be apportioned to this State
21    by multiplying such income by a fraction, the numerator of
22    which is the revenue miles of the person in this State, and
23    the denominator of which is the revenue miles of the person
24    everywhere. For purposes of this paragraph, a revenue mile
25    is the transportation of one passenger or one net ton of
26    freight the distance of one mile for a consideration. If a

 

 

10100SB0690ham003- 448 -LRB101 04451 SMS 61572 a

1    person is engaged in the transportation of both passengers
2    and freight, the fraction above referred to shall be
3    determined by means of an average of the passenger revenue
4    mile fraction and the freight revenue mile fraction,
5    weighted to reflect the person's relative gross receipts
6    from passenger and freight airline transportation.
7    (e) Combined apportionment. Where 2 or more persons are
8engaged in a unitary business as described in subsection
9(a)(27) of Section 1501, a part of which is conducted in this
10State by one or more members of the group, the business income
11attributable to this State by any such member or members shall
12be apportioned by means of the combined apportionment method.
13    (f) Alternative allocation. If the allocation and
14apportionment provisions of subsections (a) through (e) and of
15subsection (h) do not, for taxable years ending before December
1631, 2008, fairly represent the extent of a person's business
17activity in this State, or, for taxable years ending on or
18after December 31, 2008, fairly represent the market for the
19person's goods, services, or other sources of business income,
20the person may petition for, or the Director may, without a
21petition, permit or require, in respect of all or any part of
22the person's business activity, if reasonable:
23        (1) Separate accounting;
24        (2) The exclusion of any one or more factors;
25        (3) The inclusion of one or more additional factors
26    which will fairly represent the person's business

 

 

10100SB0690ham003- 449 -LRB101 04451 SMS 61572 a

1    activities or market in this State; or
2        (4) The employment of any other method to effectuate an
3    equitable allocation and apportionment of the person's
4    business income.
5    (g) Cross reference. For allocation of business income by
6residents, see Section 301(a).
7    (h) For tax years ending on or after December 31, 1998, the
8apportionment factor of persons who apportion their business
9income to this State under subsection (a) shall be equal to:
10        (1) for tax years ending on or after December 31, 1998
11    and before December 31, 1999, 16 2/3% of the property
12    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
13    the sales factor;
14        (2) for tax years ending on or after December 31, 1999
15    and before December 31, 2000, 8 1/3% of the property factor
16    plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
17    factor;
18        (3) for tax years ending on or after December 31, 2000,
19    the sales factor.
20If, in any tax year ending on or after December 31, 1998 and
21before December 31, 2000, the denominator of the payroll,
22property, or sales factor is zero, the apportionment factor
23computed in paragraph (1) or (2) of this subsection for that
24year shall be divided by an amount equal to 100% minus the
25percentage weight given to each factor whose denominator is
26equal to zero.

 

 

10100SB0690ham003- 450 -LRB101 04451 SMS 61572 a

1(Source: P.A. 99-642, eff. 7-28-16; 100-201, eff. 8-18-17.)
 
2    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
3    Sec. 710. Withholding from lottery winnings.
4    (a) In general.
5        (1) Any person making a payment to a resident or
6    nonresident of winnings under the Illinois Lottery Law and
7    not required to withhold Illinois income tax from such
8    payment under Subsection (b) of Section 701 of this Act
9    because those winnings are not subject to Federal income
10    tax withholding, must withhold Illinois income tax from
11    such payment at a rate equal to the percentage tax rate for
12    individuals provided in subsection (b) of Section 201,
13    provided that withholding is not required if such payment
14    of winnings is less than $1,000.
15        (2) In the case of an assignment of a lottery prize
16    under Section 13.1 of the Illinois Lottery Law, any person
17    making a payment of the purchase price after December 31,
18    2013, shall withhold from the amount of each payment at a
19    rate equal to the percentage tax rate for individuals
20    provided in subsection (b) of Section 201.
21        (3) Any person making a payment after December 31, 2019
22    to a resident or nonresident of winnings from pari-mutuel
23    wagering conducted at a wagering facility licensed under
24    the Illinois Horse Racing Act of 1975 or from gambling
25    games conducted on a riverboat or in a casino or

 

 

10100SB0690ham003- 451 -LRB101 04451 SMS 61572 a

1    organization gaming facility licensed under the Illinois
2    Gambling Act must withhold Illinois income tax from such
3    payment at a rate equal to the percentage tax rate for
4    individuals provided in subsection (b) of Section 201,
5    provided that the person making the payment is required to
6    withhold under Section 3402(q) of the Internal Revenue
7    Code.
8    (b) Credit for taxes withheld. Any amount withheld under
9Subsection (a) shall be a credit against the Illinois income
10tax liability of the person to whom the payment of winnings was
11made for the taxable year in which that person incurred an
12Illinois income tax liability with respect to those winnings.
13(Source: P.A. 98-496, eff. 1-1-14.)
 
14    Section 35-40. The Joliet Regional Port District Act is
15amended by changing Section 5.1 as follows:
 
16    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
17    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
18any other provision of this Act, the District may not regulate
19the operation, conduct, or navigation of any riverboat gambling
20casino licensed under the Illinois Riverboat Gambling Act, and
21the District may not license, tax, or otherwise levy any
22assessment of any kind on any riverboat gambling casino
23licensed under the Illinois Riverboat Gambling Act. The General
24Assembly declares that the powers to regulate the operation,

 

 

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1conduct, and navigation of riverboat gambling casinos and to
2license, tax, and levy assessments upon riverboat gambling
3casinos are exclusive powers of the State of Illinois and the
4Illinois Gaming Board as provided in the Illinois Riverboat
5Gambling Act.
6(Source: P.A. 87-1175.)
 
7    Section 35-45. The Consumer Installment Loan Act is amended
8by changing Section 12.5 as follows:
 
9    (205 ILCS 670/12.5)
10    Sec. 12.5. Limited purpose branch.
11    (a) Upon the written approval of the Director, a licensee
12may maintain a limited purpose branch for the sole purpose of
13making loans as permitted by this Act. A limited purpose branch
14may include an automatic loan machine. No other activity shall
15be conducted at the site, including but not limited to,
16accepting payments, servicing the accounts, or collections.
17    (b) The licensee must submit an application for a limited
18purpose branch to the Director on forms prescribed by the
19Director with an application fee of $300. The approval for the
20limited purpose branch must be renewed concurrently with the
21renewal of the licensee's license along with a renewal fee of
22$300 for the limited purpose branch.
23    (c) The books, accounts, records, and files of the limited
24purpose branch's transactions shall be maintained at the

 

 

10100SB0690ham003- 453 -LRB101 04451 SMS 61572 a

1licensee's licensed location. The licensee shall notify the
2Director of the licensed location at which the books, accounts,
3records, and files shall be maintained.
4    (d) The licensee shall prominently display at the limited
5purpose branch the address and telephone number of the
6licensee's licensed location.
7    (e) No other business shall be conducted at the site of the
8limited purpose branch unless authorized by the Director.
9    (f) The Director shall make and enforce reasonable rules
10for the conduct of a limited purpose branch.
11    (g) A limited purpose branch may not be located within
121,000 feet of a facility operated by an inter-track wagering
13licensee or an organization licensee subject to the Illinois
14Horse Racing Act of 1975, on a riverboat or in a casino subject
15to the Illinois Riverboat Gambling Act, or within 1,000 feet of
16the location at which the riverboat docks or within 1,000 feet
17of a casino.
18(Source: P.A. 90-437, eff. 1-1-98.)
 
19    Section 35-50. The Illinois Horse Racing Act of 1975 is
20amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
2120, 21, 24, 25, 26, 26.8, 26.9, 27, 29, 30, 30.5, 31, 31.1,
2232.1, 36, 40, and 54.75 and by adding Sections 3.32, 3.33,
233.34, 3.35, 19.5, 34.3, and 56 as follows:
 
24    (230 ILCS 5/1.2)

 

 

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1    Sec. 1.2. Legislative intent. This Act is intended to
2benefit the people of the State of Illinois by encouraging the
3breeding and production of race horses, assisting economic
4development and promoting Illinois tourism. The General
5Assembly finds and declares it to be the public policy of the
6State of Illinois to:
7    (a) support and enhance Illinois' horse racing industry,
8which is a significant component within the agribusiness
9industry;
10    (b) ensure that Illinois' horse racing industry remains
11competitive with neighboring states;
12    (c) stimulate growth within Illinois' horse racing
13industry, thereby encouraging new investment and development
14to produce additional tax revenues and to create additional
15jobs;
16    (d) promote the further growth of tourism;
17    (e) encourage the breeding of thoroughbred and
18standardbred horses in this State; and
19    (f) ensure that public confidence and trust in the
20credibility and integrity of racing operations and the
21regulatory process is maintained.
22(Source: P.A. 91-40, eff. 6-25-99.)
 
23    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
24    Sec. 3.11. "Organization Licensee" means any person
25receiving an organization license from the Board to conduct a

 

 

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1race meeting or meetings. With respect only to organization
2gaming, "organization licensee" includes the authorization for
3an organization gaming license under subsection (a) of Section
456 of this Act.
5(Source: P.A. 79-1185.)
 
6    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
7    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
8system of wagering" means a form of wagering on the outcome of
9horse races in which wagers are made in various denominations
10on a horse or horses and all wagers for each race are pooled
11and held by a licensee for distribution in a manner approved by
12the Board. "Pari-mutuel system of wagering" shall not include
13wagering on historic races. Wagers may be placed via any method
14or at any location authorized under this Act.
15(Source: P.A. 96-762, eff. 8-25-09.)
 
16    (230 ILCS 5/3.32 new)
17    Sec. 3.32. Gross receipts. "Gross receipts" means the total
18amount of money exchanged for the purchase of chips, tokens, or
19electronic cards by riverboat or casino patrons or organization
20gaming patrons.
 
21    (230 ILCS 5/3.33 new)
22    Sec. 3.33. Adjusted gross receipts. "Adjusted gross
23receipts" means the gross receipts less winnings paid to

 

 

10100SB0690ham003- 456 -LRB101 04451 SMS 61572 a

1wagerers.
 
2    (230 ILCS 5/3.34 new)
3    Sec. 3.34. Organization gaming facility. "Organization
4gaming facility" means that portion of an organization
5licensee's racetrack facilities at which gaming authorized
6under Section 7.7 of the Illinois Gambling Act is conducted.
 
7    (230 ILCS 5/3.35 new)
8    Sec. 3.35. Organization gaming license. "Organization
9gaming license" means a license issued by the Illinois Gaming
10Board under Section 7.7 of the Illinois Gambling Act
11authorizing gaming pursuant to that Section at an organization
12gaming facility.
 
13    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
14    Sec. 6. Restrictions on Board members.
15    (a) No person shall be appointed a member of the Board or
16continue to be a member of the Board if the person or any
17member of their immediate family is a member of the Board of
18Directors, employee, or financially interested in any of the
19following: (i) any licensee or other person who has applied for
20racing dates to the Board, or the operations thereof including,
21but not limited to, concessions, data processing, track
22maintenance, track security, and pari-mutuel operations,
23located, scheduled or doing business within the State of

 

 

10100SB0690ham003- 457 -LRB101 04451 SMS 61572 a

1Illinois, (ii) any race horse competing at a meeting under the
2Board's jurisdiction, or (iii) any licensee under the Illinois
3Gambling Act. No person shall be appointed a member of the
4Board or continue to be a member of the Board who is (or any
5member of whose family is) a member of the Board of Directors
6of, or who is a person financially interested in, any licensee
7or other person who has applied for racing dates to the Board,
8or the operations thereof including, but not limited to,
9concessions, data processing, track maintenance, track
10security and pari-mutuel operations, located, scheduled or
11doing business within the State of Illinois, or in any race
12horse competing at a meeting under the Board's jurisdiction. No
13Board member shall hold any other public office for which he
14shall receive compensation other than necessary travel or other
15incidental expenses.
16    (b) No person shall be a member of the Board who is not of
17good moral character or who has been convicted of, or is under
18indictment for, a felony under the laws of Illinois or any
19other state, or the United States.
20    (c) No member of the Board or employee shall engage in any
21political activity.
22    For the purposes of this subsection (c):
23    "Political" means any activity in support of or in
24connection with any campaign for State or local elective office
25or any political organization, but does not include activities
26(i) relating to the support or opposition of any executive,

 

 

10100SB0690ham003- 458 -LRB101 04451 SMS 61572 a

1legislative, or administrative action (as those terms are
2defined in Section 2 of the Lobbyist Registration Act), (ii)
3relating to collective bargaining, or (iii) that are otherwise
4in furtherance of the person's official State duties or
5governmental and public service functions.
6    "Political organization" means a party, committee,
7association, fund, or other organization (whether or not
8incorporated) that is required to file a statement of
9organization with the State Board of Elections or county clerk
10under Section 9-3 of the Election Code, but only with regard to
11those activities that require filing with the State Board of
12Elections or county clerk.
13    (d) Board members and employees may not engage in
14communications or any activity that may cause or have the
15appearance of causing a conflict of interest. A conflict of
16interest exists if a situation influences or creates the
17appearance that it may influence judgment or performance of
18regulatory duties and responsibilities. This prohibition shall
19extend to any act identified by Board action that, in the
20judgment of the Board, could represent the potential for or the
21appearance of a conflict of interest.
22    (e) Board members and employees may not accept any gift,
23gratuity, service, compensation, travel, lodging, or thing of
24value, with the exception of unsolicited items of an incidental
25nature, from any person, corporation, limited liability
26company, or entity doing business with the Board.

 

 

10100SB0690ham003- 459 -LRB101 04451 SMS 61572 a

1    (f) A Board member or employee shall not use or attempt to
2use his or her official position to secure, or attempt to
3secure, any privilege, advantage, favor, or influence for
4himself or herself or others. No Board member or employee,
5within a period of one year immediately preceding nomination by
6the Governor or employment, shall have been employed or
7received compensation or fees for services from a person or
8entity, or its parent or affiliate, that has engaged in
9business with the Board, a licensee or a licensee under the
10Illinois Gambling Act. In addition, all Board members and
11employees are subject to the restrictions set forth in Section
125-45 of the State Officials and Employees Ethics Act.
13(Source: P.A. 89-16, eff. 5-30-95.)
 
14    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
15    Sec. 9. The Board shall have all powers necessary and
16proper to fully and effectively execute the provisions of this
17Act, including, but not limited to, the following:
18    (a) The Board is vested with jurisdiction and supervision
19over all race meetings in this State, over all licensees doing
20business in this State, over all occupation licensees, and over
21all persons on the facilities of any licensee. Such
22jurisdiction shall include the power to issue licenses to the
23Illinois Department of Agriculture authorizing the pari-mutuel
24system of wagering on harness and Quarter Horse races held (1)
25at the Illinois State Fair in Sangamon County, and (2) at the

 

 

10100SB0690ham003- 460 -LRB101 04451 SMS 61572 a

1DuQuoin State Fair in Perry County. The jurisdiction of the
2Board shall also include the power to issue licenses to county
3fairs which are eligible to receive funds pursuant to the
4Agricultural Fair Act, as now or hereafter amended, or their
5agents, authorizing the pari-mutuel system of wagering on horse
6races conducted at the county fairs receiving such licenses.
7Such licenses shall be governed by subsection (n) of this
8Section.
9    Upon application, the Board shall issue a license to the
10Illinois Department of Agriculture to conduct harness and
11Quarter Horse races at the Illinois State Fair and at the
12DuQuoin State Fairgrounds during the scheduled dates of each
13fair. The Board shall not require and the Department of
14Agriculture shall be exempt from the requirements of Sections
1515.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
16(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
17and 25. The Board and the Department of Agriculture may extend
18any or all of these exemptions to any contractor or agent
19engaged by the Department of Agriculture to conduct its race
20meetings when the Board determines that this would best serve
21the public interest and the interest of horse racing.
22    Notwithstanding any provision of law to the contrary, it
23shall be lawful for any licensee to operate pari-mutuel
24wagering or contract with the Department of Agriculture to
25operate pari-mutuel wagering at the DuQuoin State Fairgrounds
26or for the Department to enter into contracts with a licensee,

 

 

10100SB0690ham003- 461 -LRB101 04451 SMS 61572 a

1employ its owners, employees or agents and employ such other
2occupation licensees as the Department deems necessary in
3connection with race meetings and wagerings.
4    (b) The Board is vested with the full power to promulgate
5reasonable rules and regulations for the purpose of
6administering the provisions of this Act and to prescribe
7reasonable rules, regulations and conditions under which all
8horse race meetings or wagering in the State shall be
9conducted. Such reasonable rules and regulations are to provide
10for the prevention of practices detrimental to the public
11interest and to promote the best interests of horse racing and
12to impose penalties for violations thereof.
13    (c) The Board, and any person or persons to whom it
14delegates this power, is vested with the power to enter the
15facilities and other places of business of any licensee to
16determine whether there has been compliance with the provisions
17of this Act and its rules and regulations.
18    (d) The Board, and any person or persons to whom it
19delegates this power, is vested with the authority to
20investigate alleged violations of the provisions of this Act,
21its reasonable rules and regulations, orders and final
22decisions; the Board shall take appropriate disciplinary
23action against any licensee or occupation licensee for
24violation thereof or institute appropriate legal action for the
25enforcement thereof.
26    (e) The Board, and any person or persons to whom it

 

 

10100SB0690ham003- 462 -LRB101 04451 SMS 61572 a

1delegates this power, may eject or exclude from any race
2meeting or the facilities of any licensee, or any part thereof,
3any occupation licensee or any other individual whose conduct
4or reputation is such that his presence on those facilities
5may, in the opinion of the Board, call into question the
6honesty and integrity of horse racing or wagering or interfere
7with the orderly conduct of horse racing or wagering; provided,
8however, that no person shall be excluded or ejected from the
9facilities of any licensee solely on the grounds of race,
10color, creed, national origin, ancestry, or sex. The power to
11eject or exclude an occupation licensee or other individual may
12be exercised for just cause by the licensee or the Board,
13subject to subsequent hearing by the Board as to the propriety
14of said exclusion.
15    (f) The Board is vested with the power to acquire,
16establish, maintain and operate (or provide by contract to
17maintain and operate) testing laboratories and related
18facilities, for the purpose of conducting saliva, blood, urine
19and other tests on the horses run or to be run in any horse race
20meeting, including races run at county fairs, and to purchase
21all equipment and supplies deemed necessary or desirable in
22connection with any such testing laboratories and related
23facilities and all such tests.
24    (g) The Board may require that the records, including
25financial or other statements of any licensee or any person
26affiliated with the licensee who is involved directly or

 

 

10100SB0690ham003- 463 -LRB101 04451 SMS 61572 a

1indirectly in the activities of any licensee as regulated under
2this Act to the extent that those financial or other statements
3relate to such activities be kept in such manner as prescribed
4by the Board, and that Board employees shall have access to
5those records during reasonable business hours. Within 120 days
6of the end of its fiscal year, each licensee shall transmit to
7the Board an audit of the financial transactions and condition
8of the licensee's total operations. All audits shall be
9conducted by certified public accountants. Each certified
10public accountant must be registered in the State of Illinois
11under the Illinois Public Accounting Act. The compensation for
12each certified public accountant shall be paid directly by the
13licensee to the certified public accountant. A licensee shall
14also submit any other financial or related information the
15Board deems necessary to effectively administer this Act and
16all rules, regulations, and final decisions promulgated under
17this Act.
18    (h) The Board shall name and appoint in the manner provided
19by the rules and regulations of the Board: an Executive
20Director; a State director of mutuels; State veterinarians and
21representatives to take saliva, blood, urine and other tests on
22horses; licensing personnel; revenue inspectors; and State
23seasonal employees (excluding admission ticket sellers and
24mutuel clerks). All of those named and appointed as provided in
25this subsection shall serve during the pleasure of the Board;
26their compensation shall be determined by the Board and be paid

 

 

10100SB0690ham003- 464 -LRB101 04451 SMS 61572 a

1in the same manner as other employees of the Board under this
2Act.
3    (i) The Board shall require that there shall be 3 stewards
4at each horse race meeting, at least 2 of whom shall be named
5and appointed by the Board. Stewards appointed or approved by
6the Board, while performing duties required by this Act or by
7the Board, shall be entitled to the same rights and immunities
8as granted to Board members and Board employees in Section 10
9of this Act.
10    (j) The Board may discharge any Board employee who fails or
11refuses for any reason to comply with the rules and regulations
12of the Board, or who, in the opinion of the Board, is guilty of
13fraud, dishonesty or who is proven to be incompetent. The Board
14shall have no right or power to determine who shall be
15officers, directors or employees of any licensee, or their
16salaries except the Board may, by rule, require that all or any
17officials or employees in charge of or whose duties relate to
18the actual running of races be approved by the Board.
19    (k) The Board is vested with the power to appoint delegates
20to execute any of the powers granted to it under this Section
21for the purpose of administering this Act and any rules or
22regulations promulgated in accordance with this Act.
23    (l) The Board is vested with the power to impose civil
24penalties of up to $5,000 against an individual and up to
25$10,000 against a licensee for each violation of any provision
26of this Act, any rules adopted by the Board, any order of the

 

 

10100SB0690ham003- 465 -LRB101 04451 SMS 61572 a

1Board or any other action which, in the Board's discretion, is
2a detriment or impediment to horse racing or wagering.
3Beginning on the date when any organization licensee begins
4conducting gaming pursuant to an organization gaming license
5issued under the Illinois Gambling Act, the power granted to
6the Board pursuant to this subsection (l) shall authorize the
7Board to impose penalties of up to $10,000 against an
8individual and up to $25,000 against a licensee. All such civil
9penalties shall be deposited into the Horse Racing Fund.
10    (m) The Board is vested with the power to prescribe a form
11to be used by licensees as an application for employment for
12employees of each licensee.
13    (n) The Board shall have the power to issue a license to
14any county fair, or its agent, authorizing the conduct of the
15pari-mutuel system of wagering. The Board is vested with the
16full power to promulgate reasonable rules, regulations and
17conditions under which all horse race meetings licensed
18pursuant to this subsection shall be held and conducted,
19including rules, regulations and conditions for the conduct of
20the pari-mutuel system of wagering. The rules, regulations and
21conditions shall provide for the prevention of practices
22detrimental to the public interest and for the best interests
23of horse racing, and shall prescribe penalties for violations
24thereof. Any authority granted the Board under this Act shall
25extend to its jurisdiction and supervision over county fairs,
26or their agents, licensed pursuant to this subsection. However,

 

 

10100SB0690ham003- 466 -LRB101 04451 SMS 61572 a

1the Board may waive any provision of this Act or its rules or
2regulations which would otherwise apply to such county fairs or
3their agents.
4    (o) Whenever the Board is authorized or required by law to
5consider some aspect of criminal history record information for
6the purpose of carrying out its statutory powers and
7responsibilities, then, upon request and payment of fees in
8conformance with the requirements of Section 2605-400 of the
9Department of State Police Law (20 ILCS 2605/2605-400), the
10Department of State Police is authorized to furnish, pursuant
11to positive identification, such information contained in
12State files as is necessary to fulfill the request.
13    (p) To insure the convenience, comfort, and wagering
14accessibility of race track patrons, to provide for the
15maximization of State revenue, and to generate increases in
16purse allotments to the horsemen, the Board shall require any
17licensee to staff the pari-mutuel department with adequate
18personnel.
19(Source: P.A. 97-1060, eff. 8-24-12.)
 
20    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
21    Sec. 15. (a) The Board shall, in its discretion, issue
22occupation licenses to horse owners, trainers, harness
23drivers, jockeys, agents, apprentices, grooms, stable foremen,
24exercise persons, veterinarians, valets, blacksmiths,
25concessionaires and others designated by the Board whose work,

 

 

10100SB0690ham003- 467 -LRB101 04451 SMS 61572 a

1in whole or in part, is conducted upon facilities within the
2State. Such occupation licenses will be obtained prior to the
3persons engaging in their vocation upon such facilities. The
4Board shall not license pari-mutuel clerks, parking
5attendants, security guards and employees of concessionaires.
6No occupation license shall be required of any person who works
7at facilities within this State as a pari-mutuel clerk, parking
8attendant, security guard or as an employee of a
9concessionaire. Concessionaires of the Illinois State Fair and
10DuQuoin State Fair and employees of the Illinois Department of
11Agriculture shall not be required to obtain an occupation
12license by the Board.
13    (b) Each application for an occupation license shall be on
14forms prescribed by the Board. Such license, when issued, shall
15be for the period ending December 31 of each year, except that
16the Board in its discretion may grant 3-year licenses. The
17application shall be accompanied by a fee of not more than $25
18per year or, in the case of 3-year occupation license
19applications, a fee of not more than $60. Each applicant shall
20set forth in the application his full name and address, and if
21he had been issued prior occupation licenses or has been
22licensed in any other state under any other name, such name,
23his age, whether or not a permit or license issued to him in
24any other state has been suspended or revoked and if so whether
25such suspension or revocation is in effect at the time of the
26application, and such other information as the Board may

 

 

10100SB0690ham003- 468 -LRB101 04451 SMS 61572 a

1require. Fees for registration of stable names shall not exceed
2$50.00. Beginning on the date when any organization licensee
3begins conducting gaming pursuant to an organization gaming
4license issued under the Illinois Gambling Act, the fee for
5registration of stable names shall not exceed $150, and the
6application fee for an occupation license shall not exceed $75,
7per year or, in the case of a 3-year occupation license
8application, the fee shall not exceed $180.
9    (c) The Board may in its discretion refuse an occupation
10license to any person:
11        (1) who has been convicted of a crime;
12        (2) who is unqualified to perform the duties required
13    of such applicant;
14        (3) who fails to disclose or states falsely any
15    information called for in the application;
16        (4) who has been found guilty of a violation of this
17    Act or of the rules and regulations of the Board; or
18        (5) whose license or permit has been suspended, revoked
19    or denied for just cause in any other state.
20    (d) The Board may suspend or revoke any occupation license:
21        (1) for violation of any of the provisions of this Act;
22    or
23        (2) for violation of any of the rules or regulations of
24    the Board; or
25        (3) for any cause which, if known to the Board, would
26    have justified the Board in refusing to issue such

 

 

10100SB0690ham003- 469 -LRB101 04451 SMS 61572 a

1    occupation license; or
2        (4) for any other just cause.
3    (e)   Each applicant shall submit his or her fingerprints
4to the Department of State Police in the form and manner
5prescribed by the Department of State Police. These
6fingerprints shall be checked against the fingerprint records
7now and hereafter filed in the Department of State Police and
8Federal Bureau of Investigation criminal history records
9databases. The Department of State Police shall charge a fee
10for conducting the criminal history records check, which shall
11be deposited in the State Police Services Fund and shall not
12exceed the actual cost of the records check. The Department of
13State Police shall furnish, pursuant to positive
14identification, records of conviction to the Board. Each
15applicant for licensure shall submit with his occupation
16license application, on forms provided by the Board, 2 sets of
17his fingerprints. All such applicants shall appear in person at
18the location designated by the Board for the purpose of
19submitting such sets of fingerprints; however, with the prior
20approval of a State steward, an applicant may have such sets of
21fingerprints taken by an official law enforcement agency and
22submitted to the Board.
23    (f) The Board may, in its discretion, issue an occupation
24license without submission of fingerprints if an applicant has
25been duly licensed in another recognized racing jurisdiction
26after submitting fingerprints that were subjected to a Federal

 

 

10100SB0690ham003- 470 -LRB101 04451 SMS 61572 a

1Bureau of Investigation criminal history background check in
2that jurisdiction.
3    (g) Beginning on the date when any organization licensee
4begins conducting gaming pursuant to an organization gaming
5license issued under the Illinois Gambling Act, the Board may
6charge each applicant a reasonable nonrefundable fee to defray
7the costs associated with the background investigation
8conducted by the Board. This fee shall be exclusive of any
9other fee or fees charged in connection with an application for
10and, if applicable, the issuance of, an organization gaming
11license. If the costs of the investigation exceed the amount of
12the fee charged, the Board shall immediately notify the
13applicant of the additional amount owed, payment of which must
14be submitted to the Board within 7 days after such
15notification. All information, records, interviews, reports,
16statements, memoranda, or other data supplied to or used by the
17Board in the course of its review or investigation of an
18applicant for a license or renewal under this Act shall be
19privileged, strictly confidential, and shall be used only for
20the purpose of evaluating an applicant for a license or a
21renewal. Such information, records, interviews, reports,
22statements, memoranda, or other data shall not be admissible as
23evidence, nor discoverable, in any action of any kind in any
24court or before any tribunal, board, agency, or person, except
25for any action deemed necessary by the Board.
26(Source: P.A. 93-418, eff. 1-1-04.)
 

 

 

10100SB0690ham003- 471 -LRB101 04451 SMS 61572 a

1    (230 ILCS 5/18)  (from Ch. 8, par. 37-18)
2    Sec. 18. (a) Together with its application, each applicant
3for racing dates shall deliver to the Board a certified check
4or bank draft payable to the order of the Board for $1,000. In
5the event the applicant applies for racing dates in 2 or 3
6successive calendar years as provided in subsection (b) of
7Section 21, the fee shall be $2,000. Filing fees shall not be
8refunded in the event the application is denied. Beginning on
9the date when any organization licensee begins conducting
10gaming pursuant to an organization gaming license issued under
11the Illinois Gambling Act, the application fee for racing dates
12imposed by this subsection (a) shall be $10,000 and the
13application fee for racing dates in 2 or 3 successive calendar
14years as provided in subsection (b) of Section 21 shall be
15$20,000. All filing fees shall be deposited into the Horse
16Racing Fund.
17    (b) In addition to the filing fee imposed by subsection (a)
18of $1000 and the fees provided in subsection (j) of Section 20,
19each organization licensee shall pay a license fee of $100 for
20each racing program on which its daily pari-mutuel handle is
21$400,000 or more but less than $700,000, and a license fee of
22$200 for each racing program on which its daily pari-mutuel
23handle is $700,000 or more. The additional fees required to be
24paid under this Section by this amendatory Act of 1982 shall be
25remitted by the organization licensee to the Illinois Racing

 

 

10100SB0690ham003- 472 -LRB101 04451 SMS 61572 a

1Board with each day's graduated privilege tax or pari-mutuel
2tax and breakage as provided under Section 27. Beginning on the
3date when any organization licensee begins conducting gaming
4pursuant to an organization gaming license issued under the
5Illinois Gambling Act, the license fee imposed by this
6subsection (b) shall be $200 for each racing program on which
7the organization licensee's daily pari-mutuel handle is
8$100,000 or more, but less than $400,000, and the license fee
9imposed by this subsection (b) shall be $400 for each racing
10program on which the organization licensee's daily pari-mutuel
11handle is $400,000 or more.
12    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
13Municipal Code," approved May 29, 1961, as now or hereafter
14amended, shall not apply to any license under this Act.
15(Source: P.A. 97-1060, eff. 8-24-12.)
 
16    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
17    Sec. 19. (a) No organization license may be granted to
18conduct a horse race meeting:
19        (1) except as provided in subsection (c) of Section 21
20    of this Act, to any person at any place within 35 miles of
21    any other place licensed by the Board to hold a race
22    meeting on the same date during the same hours, the mileage
23    measurement used in this subsection (a) shall be certified
24    to the Board by the Bureau of Systems and Services in the
25    Illinois Department of Transportation as the most commonly

 

 

10100SB0690ham003- 473 -LRB101 04451 SMS 61572 a

1    used public way of vehicular travel;
2        (2) to any person in default in the payment of any
3    obligation or debt due the State under this Act, provided
4    no applicant shall be deemed in default in the payment of
5    any obligation or debt due to the State under this Act as
6    long as there is pending a hearing of any kind relevant to
7    such matter;
8        (3) to any person who has been convicted of the
9    violation of any law of the United States or any State law
10    which provided as all or part of its penalty imprisonment
11    in any penal institution; to any person against whom there
12    is pending a Federal or State criminal charge; to any
13    person who is or has been connected with or engaged in the
14    operation of any illegal business; to any person who does
15    not enjoy a general reputation in his community of being an
16    honest, upright, law-abiding person; provided that none of
17    the matters set forth in this subparagraph (3) shall make
18    any person ineligible to be granted an organization license
19    if the Board determines, based on circumstances of any such
20    case, that the granting of a license would not be
21    detrimental to the interests of horse racing and of the
22    public;
23        (4) to any person who does not at the time of
24    application for the organization license own or have a
25    contract or lease for the possession of a finished race
26    track suitable for the type of racing intended to be held

 

 

10100SB0690ham003- 474 -LRB101 04451 SMS 61572 a

1    by the applicant and for the accommodation of the public.
2    (b) (Blank) Horse racing on Sunday shall be prohibited
3unless authorized by ordinance or referendum of the
4municipality in which a race track or any of its appurtenances
5or facilities are located, or utilized.
6    (c) If any person is ineligible to receive an organization
7license because of any of the matters set forth in subsection
8(a) (2) or subsection (a) (3) of this Section, any other or
9separate person that either (i) controls, directly or
10indirectly, such ineligible person or (ii) is controlled,
11directly or indirectly, by such ineligible person or by a
12person which controls, directly or indirectly, such ineligible
13person shall also be ineligible.
14(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
15    (230 ILCS 5/19.5 new)
16    Sec. 19.5. Standardbred racetrack in Cook County.
17Notwithstanding anything in this Act to the contrary, in
18addition to organization licenses issued by the Board on the
19effective date of this amendatory Act of the 101st General
20Assembly, the Board shall issue an organization license limited
21to standardbred racing to a racetrack located in one of the
22following townships of Cook County: Bloom, Bremen, Calumet,
23Orland, Rich, Thornton, or Worth. This additional organization
24license shall not be issued within a 35-mile radius of another
25organization license issued by the Board on the effective date

 

 

10100SB0690ham003- 475 -LRB101 04451 SMS 61572 a

1of this amendatory Act of the 101st General Assembly, unless
2the person having operating control of such racetrack has given
3written consent to the organization licensee applicant, which
4consent must be filed with the Board at or prior to the time
5application is made. The organization license shall be granted
6upon application, and the licensee shall have all of the
7current and future rights of existing Illinois racetracks,
8including, but not limited to, the ability to obtain an
9inter-track wagering license, the ability to obtain
10inter-track wagering location licenses, the ability to obtain
11an organization gaming license pursuant to the Illinois
12Gambling Act with 1,200 gaming positions, and the ability to
13offer Internet wagering on horse racing.
 
14    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
15    Sec. 20. (a) Any person desiring to conduct a horse race
16meeting may apply to the Board for an organization license. The
17application shall be made on a form prescribed and furnished by
18the Board. The application shall specify:
19        (1) the dates on which it intends to conduct the horse
20    race meeting, which dates shall be provided under Section
21    21;
22        (2) the hours of each racing day between which it
23    intends to hold or conduct horse racing at such meeting;
24        (3) the location where it proposes to conduct the
25    meeting; and

 

 

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1        (4) any other information the Board may reasonably
2    require.
3    (b) A separate application for an organization license
4shall be filed for each horse race meeting which such person
5proposes to hold. Any such application, if made by an
6individual, or by any individual as trustee, shall be signed
7and verified under oath by such individual. If the application
8is made by individuals, then it shall be signed and verified
9under oath by at least 2 of the individuals; if the application
10is made by or a partnership, it shall be signed and verified
11under oath by at least 2 of such individuals or members of such
12partnership as the case may be. If made by an association, a
13corporation, a corporate trustee, a limited liability company,
14or any other entity, it shall be signed by an authorized
15officer, a partner, a member, or a manager, as the case may be,
16of the entity the president and attested by the secretary or
17assistant secretary under the seal of such association, trust
18or corporation if it has a seal, and shall also be verified
19under oath by one of the signing officers.
20    (c) The application shall specify:
21        (1) the name of the persons, association, trust, or
22    corporation making such application; and
23        (2) the principal post office address of the applicant;
24        (3) if the applicant is a trustee, the names and
25    addresses of the beneficiaries; if the applicant is a
26    corporation, the names and post office addresses of all

 

 

10100SB0690ham003- 477 -LRB101 04451 SMS 61572 a

1    officers, stockholders and directors; or if such
2    stockholders hold stock as a nominee or fiduciary, the
3    names and post office addresses of the parties these
4    persons, partnerships, corporations, or trusts who are the
5    beneficial owners thereof or who are beneficially
6    interested therein; and if the applicant is a partnership,
7    the names and post office addresses of all partners,
8    general or limited; if the applicant is a limited liability
9    company, the names and addresses of the manager and
10    members; and if the applicant is any other entity, the
11    names and addresses of all officers or other authorized
12    persons of the entity corporation, the name of the state of
13    its incorporation shall be specified.
14    (d) The applicant shall execute and file with the Board a
15good faith affirmative action plan to recruit, train, and
16upgrade minorities in all classifications within the
17association.
18    (e) With such application there shall be delivered to the
19Board a certified check or bank draft payable to the order of
20the Board for an amount equal to $1,000. All applications for
21the issuance of an organization license shall be filed with the
22Board before August 1 of the year prior to the year for which
23application is made and shall be acted upon by the Board at a
24meeting to be held on such date as shall be fixed by the Board
25during the last 15 days of September of such prior year. At
26such meeting, the Board shall announce the award of the racing

 

 

10100SB0690ham003- 478 -LRB101 04451 SMS 61572 a

1meets, live racing schedule, and designation of host track to
2the applicants and its approval or disapproval of each
3application. No announcement shall be considered binding until
4a formal order is executed by the Board, which shall be
5executed no later than October 15 of that prior year. Absent
6the agreement of the affected organization licensees, the Board
7shall not grant overlapping race meetings to 2 or more tracks
8that are within 100 miles of each other to conduct the
9thoroughbred racing.
10    (e-1) The Board shall award standardbred racing dates to
11organization licensees with an organization gaming license
12pursuant to the following schedule:
13        (1) For the first calendar year of operation of
14    gambling games by an organization gaming licensee under
15    this amendatory Act of the 101st General Assembly, when a
16    single entity requests standardbred racing dates, the
17    Board shall award no fewer than 100 days of racing. The
18    100-day requirement may be reduced to no fewer than 80 days
19    if no dates are requested for the first 3 months of a
20    calendar year. If more than one entity requests
21    standardbred racing dates, the Board shall award no fewer
22    than 140 days of racing between the applicants.
23        (2) For the second calendar year of operation of
24    gambling games by an organization gaming licensee under
25    this amendatory Act of the 101st General Assembly, when a
26    single entity requests standardbred racing dates, the

 

 

10100SB0690ham003- 479 -LRB101 04451 SMS 61572 a

1    Board shall award no fewer than 100 days of racing. The
2    100-day requirement may be reduced to no fewer than 80 days
3    if no dates are requested for the first 3 months of a
4    calendar year. If more than one entity requests
5    standardbred racing dates, the Board shall award no fewer
6    than 160 days of racing between the applicants.
7        (3) For the third calendar year of operation of
8    gambling games by an organization gaming licensee under
9    this amendatory Act of the 101st General Assembly, and each
10    calendar year thereafter, when a single entity requests
11    standardbred racing dates, the Board shall award no fewer
12    than 120 days of racing. The 120-day requirement may be
13    reduced to no fewer than 100 days if no dates are requested
14    for the first 3 months of a calendar year. If more than one
15    entity requests standardbred racing dates, the Board shall
16    award no fewer than 200 days of racing between the
17    applicants.
18    An organization licensee shall apply for racing dates
19pursuant to this subsection (e-1). In awarding racing dates
20under this subsection (e-1), the Board shall have the
21discretion to allocate those standardbred racing dates among
22these organization licensees.
23    (e-2) The Board shall award thoroughbred racing days to
24Cook County organization licensees pursuant to the following
25schedule:
26        (1) During the first year in which only one

 

 

10100SB0690ham003- 480 -LRB101 04451 SMS 61572 a

1    organization licensee is awarded an organization gaming
2    license, the Board shall award no fewer than 110 days of
3    racing.
4        During the second year in which only one organization
5    licensee is awarded an organization gaming license, the
6    Board shall award no fewer than 115 racing days.
7        During the third year and every year thereafter, in
8    which only one organization licensee is awarded an
9    organization gaming license, the Board shall award no fewer
10    than 120 racing days.
11        (2) During the first year in which 2 organization
12    licensees are awarded an organization gaming license, the
13    Board shall award no fewer than 139 total racing days.
14        During the second year in which 2 organization
15    licensees are awarded an organization gaming license, the
16    Board shall award no fewer than 160 total racing days.
17        During the third year and every year thereafter in
18    which 2 organization licensees are awarded an organization
19    gaming license, the Board shall award no fewer than 174
20    total racing days.
21    A Cook County organization licensee shall apply for racing
22dates pursuant to this subsection (e-2). In awarding racing
23dates under this subsection (e-2), the Board shall have the
24discretion to allocate those thoroughbred racing dates among
25these Cook County organization licensees.
26    (e-3) In awarding racing dates for calendar year 2020 and

 

 

10100SB0690ham003- 481 -LRB101 04451 SMS 61572 a

1thereafter in connection with a racetrack in Madison County,
2the Board shall award racing dates and such organization
3licensee shall run at least 700 thoroughbred races at the
4racetrack in Madison County each year.
5    Notwithstanding Section 7.7 of the Illinois Gambling Act or
6any provision of this Act other than subsection (e-4.5), for
7each calendar year for which an organization gaming licensee
8located in Madison County requests racing dates resulting in
9less than 700 live thoroughbred races at its racetrack
10facility, the organization gaming licensee may not conduct
11gaming pursuant to an organization gaming license issued under
12the Illinois Gambling Act for the calendar year of such
13requested live races.
14    (e-4) Notwithstanding the provisions of Section 7.7 of the
15Illinois Gambling Act or any provision of this Act other than
16subsections (e-3) and (e-4.5), for each calendar year for which
17an organization gaming licensee requests thoroughbred racing
18dates which results in a number of live races under its
19organization license that is less than the total number of live
20races which it conducted in 2017 at its racetrack facility, the
21organization gaming licensee may not conduct gaming pursuant to
22its organization gaming license for the calendar year of such
23requested live races.
24    (e-4.1) Notwithstanding the provisions of Section 7.7 of
25the Illinois Gambling Act or any provision of this Act other
26than subsections (e-3) and (e-4.5), for each calendar year for

 

 

10100SB0690ham003- 482 -LRB101 04451 SMS 61572 a

1which an organization licensee requests racing dates for
2standardbred racing which results in a number of live races
3that is less than the total number of live races required in
4subsection (e-1), the organization gaming licensee may not
5conduct gaming pursuant to its organization gaming license for
6the calendar year of such requested live races.
7    (e-4.5) The Board shall award the minimum live racing
8guarantees contained in subsections (e-1), (e-2), and (e-3) to
9ensure that each organization licensee shall individually run a
10sufficient number of races per year to qualify for an
11organization gaming license under this Act. The General
12Assembly finds that the minimum live racing guarantees
13contained in subsections (e-1), (e-2), and (e-3) are in the
14best interest of the sport of horse racing, and that such
15guarantees may only be reduced in the calendar year in which
16they will be conducted in the limited circumstances described
17in this subsection. The Board may decrease the number of racing
18days without affecting an organization licensee's ability to
19conduct gaming pursuant to an organization gaming license
20issued under the Illinois Gambling Act only if the Board
21determines, after notice and hearing, that:
22        (i) a decrease is necessary to maintain a sufficient
23    number of betting interests per race to ensure the
24    integrity of racing;
25        (ii) there are unsafe track conditions due to weather
26    or acts of God;

 

 

10100SB0690ham003- 483 -LRB101 04451 SMS 61572 a

1        (iii) there is an agreement between an organization
2    licensee and the breed association that is applicable to
3    the involved live racing guarantee, such association
4    representing either the largest number of thoroughbred
5    owners and trainers or the largest number of standardbred
6    owners, trainers and drivers who race horses at the
7    involved organization licensee's racing meeting, so long
8    as the agreement does not compromise the integrity of the
9    sport of horse racing; or
10        (iv) the horse population or purse levels are
11    insufficient to provide the number of racing opportunities
12    otherwise required in this Act.
13    In decreasing the number of racing dates in accordance with
14this subsection, the Board shall hold a hearing and shall
15provide the public and all interested parties notice and an
16opportunity to be heard. The Board shall accept testimony from
17all interested parties, including any association representing
18owners, trainers, jockeys, or drivers who will be affected by
19the decrease in racing dates. The Board shall provide a written
20explanation of the reasons for the decrease and the Board's
21findings. The written explanation shall include a listing and
22content of all communication between any party and any Illinois
23Racing Board member or staff that does not take place at a
24public meeting of the Board.
25    (e-5) In reviewing an application for the purpose of
26granting an organization license consistent with the best

 

 

10100SB0690ham003- 484 -LRB101 04451 SMS 61572 a

1interests of the public and the sport of horse racing, the
2Board shall consider:
3        (1) the character, reputation, experience, and
4    financial integrity of the applicant and of any other
5    separate person that either:
6            (i) controls the applicant, directly or
7        indirectly, or
8            (ii) is controlled, directly or indirectly, by
9        that applicant or by a person who controls, directly or
10        indirectly, that applicant;
11        (2) the applicant's facilities or proposed facilities
12    for conducting horse racing;
13        (3) the total revenue without regard to Section 32.1 to
14    be derived by the State and horsemen from the applicant's
15    conducting a race meeting;
16        (4) the applicant's good faith affirmative action plan
17    to recruit, train, and upgrade minorities in all employment
18    classifications;
19        (5) the applicant's financial ability to purchase and
20    maintain adequate liability and casualty insurance;
21        (6) the applicant's proposed and prior year's
22    promotional and marketing activities and expenditures of
23    the applicant associated with those activities;
24        (7) an agreement, if any, among organization licensees
25    as provided in subsection (b) of Section 21 of this Act;
26    and

 

 

10100SB0690ham003- 485 -LRB101 04451 SMS 61572 a

1        (8) the extent to which the applicant exceeds or meets
2    other standards for the issuance of an organization license
3    that the Board shall adopt by rule.
4    In granting organization licenses and allocating dates for
5horse race meetings, the Board shall have discretion to
6determine an overall schedule, including required simulcasts
7of Illinois races by host tracks that will, in its judgment, be
8conducive to the best interests of the public and the sport of
9horse racing.
10    (e-10) The Illinois Administrative Procedure Act shall
11apply to administrative procedures of the Board under this Act
12for the granting of an organization license, except that (1)
13notwithstanding the provisions of subsection (b) of Section
1410-40 of the Illinois Administrative Procedure Act regarding
15cross-examination, the Board may prescribe rules limiting the
16right of an applicant or participant in any proceeding to award
17an organization license to conduct cross-examination of
18witnesses at that proceeding where that cross-examination
19would unduly obstruct the timely award of an organization
20license under subsection (e) of Section 20 of this Act; (2) the
21provisions of Section 10-45 of the Illinois Administrative
22Procedure Act regarding proposals for decision are excluded
23under this Act; (3) notwithstanding the provisions of
24subsection (a) of Section 10-60 of the Illinois Administrative
25Procedure Act regarding ex parte communications, the Board may
26prescribe rules allowing ex parte communications with

 

 

10100SB0690ham003- 486 -LRB101 04451 SMS 61572 a

1applicants or participants in a proceeding to award an
2organization license where conducting those communications
3would be in the best interest of racing, provided all those
4communications are made part of the record of that proceeding
5pursuant to subsection (c) of Section 10-60 of the Illinois
6Administrative Procedure Act; (4) the provisions of Section 14a
7of this Act and the rules of the Board promulgated under that
8Section shall apply instead of the provisions of Article 10 of
9the Illinois Administrative Procedure Act regarding
10administrative law judges; and (5) the provisions of subsection
11(d) of Section 10-65 of the Illinois Administrative Procedure
12Act that prevent summary suspension of a license pending
13revocation or other action shall not apply.
14    (f) The Board may allot racing dates to an organization
15licensee for more than one calendar year but for no more than 3
16successive calendar years in advance, provided that the Board
17shall review such allotment for more than one calendar year
18prior to each year for which such allotment has been made. The
19granting of an organization license to a person constitutes a
20privilege to conduct a horse race meeting under the provisions
21of this Act, and no person granted an organization license
22shall be deemed to have a vested interest, property right, or
23future expectation to receive an organization license in any
24subsequent year as a result of the granting of an organization
25license. Organization licenses shall be subject to revocation
26if the organization licensee has violated any provision of this

 

 

10100SB0690ham003- 487 -LRB101 04451 SMS 61572 a

1Act or the rules and regulations promulgated under this Act or
2has been convicted of a crime or has failed to disclose or has
3stated falsely any information called for in the application
4for an organization license. Any organization license
5revocation proceeding shall be in accordance with Section 16
6regarding suspension and revocation of occupation licenses.
7    (f-5) If, (i) an applicant does not file an acceptance of
8the racing dates awarded by the Board as required under part
9(1) of subsection (h) of this Section 20, or (ii) an
10organization licensee has its license suspended or revoked
11under this Act, the Board, upon conducting an emergency hearing
12as provided for in this Act, may reaward on an emergency basis
13pursuant to rules established by the Board, racing dates not
14accepted or the racing dates associated with any suspension or
15revocation period to one or more organization licensees, new
16applicants, or any combination thereof, upon terms and
17conditions that the Board determines are in the best interest
18of racing, provided, the organization licensees or new
19applicants receiving the awarded racing dates file an
20acceptance of those reawarded racing dates as required under
21paragraph (1) of subsection (h) of this Section 20 and comply
22with the other provisions of this Act. The Illinois
23Administrative Procedure Act shall not apply to the
24administrative procedures of the Board in conducting the
25emergency hearing and the reallocation of racing dates on an
26emergency basis.

 

 

10100SB0690ham003- 488 -LRB101 04451 SMS 61572 a

1    (g) (Blank).
2    (h) The Board shall send the applicant a copy of its
3formally executed order by certified mail addressed to the
4applicant at the address stated in his application, which
5notice shall be mailed within 5 days of the date the formal
6order is executed.
7    Each applicant notified shall, within 10 days after receipt
8of the final executed order of the Board awarding racing dates:
9        (1) file with the Board an acceptance of such award in
10    the form prescribed by the Board;
11        (2) pay to the Board an additional amount equal to $110
12    for each racing date awarded; and
13        (3) file with the Board the bonds required in Sections
14    21 and 25 at least 20 days prior to the first day of each
15    race meeting.
16Upon compliance with the provisions of paragraphs (1), (2), and
17(3) of this subsection (h), the applicant shall be issued an
18organization license.
19    If any applicant fails to comply with this Section or fails
20to pay the organization license fees herein provided, no
21organization license shall be issued to such applicant.
22(Source: P.A. 97-333, eff. 8-12-11.)
 
23    (230 ILCS 5/21)  (from Ch. 8, par. 37-21)
24    Sec. 21. (a) Applications for organization licenses must be
25filed with the Board at a time and place prescribed by the

 

 

10100SB0690ham003- 489 -LRB101 04451 SMS 61572 a

1rules and regulations of the Board. The Board shall examine the
2applications within 21 days after the date allowed for filing
3with respect to their conformity with this Act and such rules
4and regulations as may be prescribed by the Board. If any
5application does not comply with this Act or the rules and
6regulations prescribed by the Board, such application may be
7rejected and an organization license refused to the applicant,
8or the Board may, within 21 days of the receipt of such
9application, advise the applicant of the deficiencies of the
10application under the Act or the rules and regulations of the
11Board, and require the submittal of an amended application
12within a reasonable time determined by the Board; and upon
13submittal of the amended application by the applicant, the
14Board may consider the application consistent with the process
15described in subsection (e-5) of Section 20 of this Act. If it
16is found to be in compliance with this Act and the rules and
17regulations of the Board, the Board may then issue an
18organization license to such applicant.
19    (b) The Board may exercise discretion in granting racing
20dates to qualified applicants different from those requested by
21the applicants in their applications. However, if all eligible
22applicants for organization licenses whose tracks are located
23within 100 miles of each other execute and submit to the Board
24a written agreement among such applicants as to the award of
25racing dates, including where applicable racing programs, for
26up to 3 consecutive years, then subject to annual review of

 

 

10100SB0690ham003- 490 -LRB101 04451 SMS 61572 a

1each applicant's compliance with Board rules and regulations,
2provisions of this Act and conditions contained in annual dates
3orders issued by the Board, the Board may grant such dates and
4programs to such applicants as so agreed by them if the Board
5determines that the grant of these racing dates is in the best
6interests of racing. The Board shall treat any such agreement
7as the agreement signatories' joint and several application for
8racing dates during the term of the agreement.
9    (c) Where 2 or more applicants propose to conduct horse
10race meetings within 35 miles of each other, as certified to
11the Board under Section 19 (a) (1) of this Act, on conflicting
12dates, the Board may determine and grant the number of racing
13days to be awarded to the several applicants in accordance with
14the provisions of subsection (e-5) of Section 20 of this Act.
15    (d) (Blank).
16    (e) Prior to the issuance of an organization license, the
17applicant shall file with the Board a bond payable to the State
18of Illinois in the sum of $200,000, executed by the applicant
19and a surety company or companies authorized to do business in
20this State, and conditioned upon the payment by the
21organization licensee of all taxes due under Section 27, other
22monies due and payable under this Act, all purses due and
23payable, and that the organization licensee will upon
24presentation of the winning ticket or tickets distribute all
25sums due to the patrons of pari-mutuel pools. Beginning on the
26date when any organization licensee begins conducting gaming

 

 

10100SB0690ham003- 491 -LRB101 04451 SMS 61572 a

1pursuant to an organization gaming license issued under the
2Illinois Gambling Act, the amount of the bond required under
3this subsection (e) shall be $500,000.
4    (f) Each organization license shall specify the person to
5whom it is issued, the dates upon which horse racing is
6permitted, and the location, place, track, or enclosure where
7the horse race meeting is to be held.
8    (g) Any person who owns one or more race tracks within the
9State may seek, in its own name, a separate organization
10license for each race track.
11    (h) All racing conducted under such organization license is
12subject to this Act and to the rules and regulations from time
13to time prescribed by the Board, and every such organization
14license issued by the Board shall contain a recital to that
15effect.
16    (i) Each such organization licensee may provide that at
17least one race per day may be devoted to the racing of quarter
18horses, appaloosas, arabians, or paints.
19    (j) In acting on applications for organization licenses,
20the Board shall give weight to an organization license which
21has implemented a good faith affirmative action effort to
22recruit, train and upgrade minorities in all classifications
23within the organization license.
24(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
 
25    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)

 

 

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1    Sec. 24. (a) No license shall be issued to or held by an
2organization licensee unless all of its officers, directors,
3and holders of ownership interests of at least 5% are first
4approved by the Board. The Board shall not give approval of an
5organization license application to any person who has been
6convicted of or is under an indictment for a crime of moral
7turpitude or has violated any provision of the racing law of
8this State or any rules of the Board.
9    (b) An organization licensee must notify the Board within
1010 days of any change in the holders of a direct or indirect
11interest in the ownership of the organization licensee. The
12Board may, after hearing, revoke the organization license of
13any person who registers on its books or knowingly permits a
14direct or indirect interest in the ownership of that person
15without notifying the Board of the name of the holder in
16interest within this period.
17    (c) In addition to the provisions of subsection (a) of this
18Section, no person shall be granted an organization license if
19any public official of the State or member of his or her family
20holds any ownership or financial interest, directly or
21indirectly, in the person.
22    (d) No person which has been granted an organization
23license to hold a race meeting shall give to any public
24official or member of his family, directly or indirectly, for
25or without consideration, any interest in the person. The Board
26shall, after hearing, revoke the organization license granted

 

 

10100SB0690ham003- 493 -LRB101 04451 SMS 61572 a

1to a person which has violated this subsection.
2    (e) (Blank).
3    (f) No organization licensee or concessionaire or officer,
4director or holder or controller of 5% or more legal or
5beneficial interest in any organization licensee or concession
6shall make any sort of gift or contribution that is prohibited
7under Article 10 of the State Officials and Employees Ethics
8Act of any kind or pay or give any money or other thing of value
9to any person who is a public official, or a candidate or
10nominee for public office if that payment or gift is prohibited
11under Article 10 of the State Officials and Employees Ethics
12Act.
13(Source: P.A. 89-16, eff. 5-30-95.)
 
14    (230 ILCS 5/25)  (from Ch. 8, par. 37-25)
15    Sec. 25. Admission charge; bond; fine.
16    (a) There shall be paid to the Board at such time or times
17as it shall prescribe, the sum of fifteen cents (15¢) for each
18person entering the grounds or enclosure of each organization
19licensee and inter-track wagering licensee upon a ticket of
20admission except as provided in subsection (g) of Section 27 of
21this Act. If tickets are issued for more than one day then the
22sum of fifteen cents (15¢) shall be paid for each person using
23such ticket on each day that the same shall be used. Provided,
24however, that no charge shall be made on tickets of admission
25issued to and in the name of directors, officers, agents or

 

 

10100SB0690ham003- 494 -LRB101 04451 SMS 61572 a

1employees of the organization licensee, or inter-track
2wagering licensee, or to owners, trainers, jockeys, drivers and
3their employees or to any person or persons entering the
4grounds or enclosure for the transaction of business in
5connection with such race meeting. The organization licensee or
6inter-track wagering licensee may, if it desires, collect such
7amount from each ticket holder in addition to the amount or
8amounts charged for such ticket of admission. Beginning on the
9date when any organization licensee begins conducting gaming
10pursuant to an organization gaming license issued under the
11Illinois Gambling Act, the admission charge imposed by this
12subsection (a) shall be 40 cents for each person entering the
13grounds or enclosure of each organization licensee and
14inter-track wagering licensee upon a ticket of admission, and
15if such tickets are issued for more than one day, 40 cents
16shall be paid for each person using such ticket on each day
17that the same shall be used.
18    (b) Accurate records and books shall at all times be kept
19and maintained by the organization licensees and inter-track
20wagering licensees showing the admission tickets issued and
21used on each racing day and the attendance thereat of each
22horse racing meeting. The Board or its duly authorized
23representative or representatives shall at all reasonable
24times have access to the admission records of any organization
25licensee and inter-track wagering licensee for the purpose of
26examining and checking the same and ascertaining whether or not

 

 

10100SB0690ham003- 495 -LRB101 04451 SMS 61572 a

1the proper amount has been or is being paid the State of
2Illinois as herein provided. The Board shall also require,
3before issuing any license, that the licensee shall execute and
4deliver to it a bond, payable to the State of Illinois, in such
5sum as it shall determine, not, however, in excess of fifty
6thousand dollars ($50,000), with a surety or sureties to be
7approved by it, conditioned for the payment of all sums due and
8payable or collected by it under this Section upon admission
9fees received for any particular racing meetings. The Board may
10also from time to time require sworn statements of the number
11or numbers of such admissions and may prescribe blanks upon
12which such reports shall be made. Any organization licensee or
13inter-track wagering licensee failing or refusing to pay the
14amount found to be due as herein provided, shall be deemed
15guilty of a business offense and upon conviction shall be
16punished by a fine of not more than five thousand dollars
17($5,000) in addition to the amount due from such organization
18licensee or inter-track wagering licensee as herein provided.
19All fines paid into court by an organization licensee or
20inter-track wagering licensee found guilty of violating this
21Section shall be transmitted and paid over by the clerk of the
22court to the Board. Beginning on the date when any organization
23licensee begins conducting gaming pursuant to an organization
24gaming license issued under the Illinois Gambling Act, any fine
25imposed pursuant to this subsection (b) shall not exceed
26$10,000.

 

 

10100SB0690ham003- 496 -LRB101 04451 SMS 61572 a

1(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
2    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
3    Sec. 26. Wagering.
4    (a) Any licensee may conduct and supervise the pari-mutuel
5system of wagering, as defined in Section 3.12 of this Act, on
6horse races conducted by an Illinois organization licensee or
7conducted at a racetrack located in another state or country
8and televised in Illinois in accordance with subsection (g) of
9Section 26 of this Act. Subject to the prior consent of the
10Board, licensees may supplement any pari-mutuel pool in order
11to guarantee a minimum distribution. Such pari-mutuel method of
12wagering shall not, under any circumstances if conducted under
13the provisions of this Act, be held or construed to be
14unlawful, other statutes of this State to the contrary
15notwithstanding. Subject to rules for advance wagering
16promulgated by the Board, any licensee may accept wagers in
17advance of the day of the race wagered upon occurs.
18    (b) Except for those gaming activities for which a license
19is obtained and authorized under the Illinois Lottery Law, the
20Charitable Games Act, the Raffles and Poker Runs Act, or the
21Illinois Gambling Act, no No other method of betting, pool
22making, wagering or gambling shall be used or permitted by the
23licensee. Each licensee may retain, subject to the payment of
24all applicable taxes and purses, an amount not to exceed 17% of
25all money wagered under subsection (a) of this Section, except

 

 

10100SB0690ham003- 497 -LRB101 04451 SMS 61572 a

1as may otherwise be permitted under this Act.
2    (b-5) An individual may place a wager under the pari-mutuel
3system from any licensed location authorized under this Act
4provided that wager is electronically recorded in the manner
5described in Section 3.12 of this Act. Any wager made
6electronically by an individual while physically on the
7premises of a licensee shall be deemed to have been made at the
8premises of that licensee.
9    (c) (Blank). Until January 1, 2000, the sum held by any
10licensee for payment of outstanding pari-mutuel tickets, if
11unclaimed prior to December 31 of the next year, shall be
12retained by the licensee for payment of such tickets until that
13date. Within 10 days thereafter, the balance of such sum
14remaining unclaimed, less any uncashed supplements contributed
15by such licensee for the purpose of guaranteeing minimum
16distributions of any pari-mutuel pool, shall be paid to the
17Illinois Veterans' Rehabilitation Fund of the State treasury,
18except as provided in subsection (g) of Section 27 of this Act.
19    (c-5) The Beginning January 1, 2000, the sum held by any
20licensee for payment of outstanding pari-mutuel tickets, if
21unclaimed prior to December 31 of the next year, shall be
22retained by the licensee for payment of such tickets until that
23date. Within 10 days thereafter, the balance of such sum
24remaining unclaimed, less any uncashed supplements contributed
25by such licensee for the purpose of guaranteeing minimum
26distributions of any pari-mutuel pool, shall be evenly

 

 

10100SB0690ham003- 498 -LRB101 04451 SMS 61572 a

1distributed to the purse account of the organization licensee
2and the organization licensee, except that the balance of the
3sum of all outstanding pari-mutuel tickets generated from
4simulcast wagering and inter-track wagering by an organization
5licensee located in a county with a population in excess of
6230,000 and borders the Mississippi River or any licensee that
7derives its license from that organization licensee shall be
8evenly distributed to the purse account of the organization
9licensee and the organization licensee.
10    (d) A pari-mutuel ticket shall be honored until December 31
11of the next calendar year, and the licensee shall pay the same
12and may charge the amount thereof against unpaid money
13similarly accumulated on account of pari-mutuel tickets not
14presented for payment.
15    (e) No licensee shall knowingly permit any minor, other
16than an employee of such licensee or an owner, trainer, jockey,
17driver, or employee thereof, to be admitted during a racing
18program unless accompanied by a parent or guardian, or any
19minor to be a patron of the pari-mutuel system of wagering
20conducted or supervised by it. The admission of any
21unaccompanied minor, other than an employee of the licensee or
22an owner, trainer, jockey, driver, or employee thereof at a
23race track is a Class C misdemeanor.
24    (f) Notwithstanding the other provisions of this Act, an
25organization licensee may contract with an entity in another
26state or country to permit any legal wagering entity in another

 

 

10100SB0690ham003- 499 -LRB101 04451 SMS 61572 a

1state or country to accept wagers solely within such other
2state or country on races conducted by the organization
3licensee in this State. Beginning January 1, 2000, these wagers
4shall not be subject to State taxation. Until January 1, 2000,
5when the out-of-State entity conducts a pari-mutuel pool
6separate from the organization licensee, a privilege tax equal
7to 7 1/2% of all monies received by the organization licensee
8from entities in other states or countries pursuant to such
9contracts is imposed on the organization licensee, and such
10privilege tax shall be remitted to the Department of Revenue
11within 48 hours of receipt of the moneys from the simulcast.
12When the out-of-State entity conducts a combined pari-mutuel
13pool with the organization licensee, the tax shall be 10% of
14all monies received by the organization licensee with 25% of
15the receipts from this 10% tax to be distributed to the county
16in which the race was conducted.
17    An organization licensee may permit one or more of its
18races to be utilized for pari-mutuel wagering at one or more
19locations in other states and may transmit audio and visual
20signals of races the organization licensee conducts to one or
21more locations outside the State or country and may also permit
22pari-mutuel pools in other states or countries to be combined
23with its gross or net wagering pools or with wagering pools
24established by other states.
25    (g) A host track may accept interstate simulcast wagers on
26horse races conducted in other states or countries and shall

 

 

10100SB0690ham003- 500 -LRB101 04451 SMS 61572 a

1control the number of signals and types of breeds of racing in
2its simulcast program, subject to the disapproval of the Board.
3The Board may prohibit a simulcast program only if it finds
4that the simulcast program is clearly adverse to the integrity
5of racing. The host track simulcast program shall include the
6signal of live racing of all organization licensees. All
7non-host licensees and advance deposit wagering licensees
8shall carry the signal of and accept wagers on live racing of
9all organization licensees. Advance deposit wagering licensees
10shall not be permitted to accept out-of-state wagers on any
11Illinois signal provided pursuant to this Section without the
12approval and consent of the organization licensee providing the
13signal. For one year after August 15, 2014 (the effective date
14of Public Act 98-968), non-host licensees may carry the host
15track simulcast program and shall accept wagers on all races
16included as part of the simulcast program of horse races
17conducted at race tracks located within North America upon
18which wagering is permitted. For a period of one year after
19August 15, 2014 (the effective date of Public Act 98-968), on
20horse races conducted at race tracks located outside of North
21America, non-host licensees may accept wagers on all races
22included as part of the simulcast program upon which wagering
23is permitted. Beginning August 15, 2015 (one year after the
24effective date of Public Act 98-968), non-host licensees may
25carry the host track simulcast program and shall accept wagers
26on all races included as part of the simulcast program upon

 

 

10100SB0690ham003- 501 -LRB101 04451 SMS 61572 a

1which wagering is permitted. All organization licensees shall
2provide their live signal to all advance deposit wagering
3licensees for a simulcast commission fee not to exceed 6% of
4the advance deposit wagering licensee's Illinois handle on the
5organization licensee's signal without prior approval by the
6Board. The Board may adopt rules under which it may permit
7simulcast commission fees in excess of 6%. The Board shall
8adopt rules limiting the interstate commission fees charged to
9an advance deposit wagering licensee. The Board shall adopt
10rules regarding advance deposit wagering on interstate
11simulcast races that shall reflect, among other things, the
12General Assembly's desire to maximize revenues to the State,
13horsemen purses, and organization organizational licensees.
14However, organization licensees providing live signals
15pursuant to the requirements of this subsection (g) may
16petition the Board to withhold their live signals from an
17advance deposit wagering licensee if the organization licensee
18discovers and the Board finds reputable or credible information
19that the advance deposit wagering licensee is under
20investigation by another state or federal governmental agency,
21the advance deposit wagering licensee's license has been
22suspended in another state, or the advance deposit wagering
23licensee's license is in revocation proceedings in another
24state. The organization licensee's provision of their live
25signal to an advance deposit wagering licensee under this
26subsection (g) pertains to wagers placed from within Illinois.

 

 

10100SB0690ham003- 502 -LRB101 04451 SMS 61572 a

1Advance deposit wagering licensees may place advance deposit
2wagering terminals at wagering facilities as a convenience to
3customers. The advance deposit wagering licensee shall not
4charge or collect any fee from purses for the placement of the
5advance deposit wagering terminals. The costs and expenses of
6the host track and non-host licensees associated with
7interstate simulcast wagering, other than the interstate
8commission fee, shall be borne by the host track and all
9non-host licensees incurring these costs. The interstate
10commission fee shall not exceed 5% of Illinois handle on the
11interstate simulcast race or races without prior approval of
12the Board. The Board shall promulgate rules under which it may
13permit interstate commission fees in excess of 5%. The
14interstate commission fee and other fees charged by the sending
15racetrack, including, but not limited to, satellite decoder
16fees, shall be uniformly applied to the host track and all
17non-host licensees.
18    Notwithstanding any other provision of this Act, through
19December 31, 2020, an organization licensee, with the consent
20of the horsemen association representing the largest number of
21owners, trainers, jockeys, or standardbred drivers who race
22horses at that organization licensee's racing meeting, may
23maintain a system whereby advance deposit wagering may take
24place or an organization licensee, with the consent of the
25horsemen association representing the largest number of
26owners, trainers, jockeys, or standardbred drivers who race

 

 

10100SB0690ham003- 503 -LRB101 04451 SMS 61572 a

1horses at that organization licensee's racing meeting, may
2contract with another person to carry out a system of advance
3deposit wagering. Such consent may not be unreasonably
4withheld. Only with respect to an appeal to the Board that
5consent for an organization licensee that maintains its own
6advance deposit wagering system is being unreasonably
7withheld, the Board shall issue a final order within 30 days
8after initiation of the appeal, and the organization licensee's
9advance deposit wagering system may remain operational during
10that 30-day period. The actions of any organization licensee
11who conducts advance deposit wagering or any person who has a
12contract with an organization licensee to conduct advance
13deposit wagering who conducts advance deposit wagering on or
14after January 1, 2013 and prior to June 7, 2013 (the effective
15date of Public Act 98-18) taken in reliance on the changes made
16to this subsection (g) by Public Act 98-18 are hereby
17validated, provided payment of all applicable pari-mutuel
18taxes are remitted to the Board. All advance deposit wagers
19placed from within Illinois must be placed through a
20Board-approved advance deposit wagering licensee; no other
21entity may accept an advance deposit wager from a person within
22Illinois. All advance deposit wagering is subject to any rules
23adopted by the Board. The Board may adopt rules necessary to
24regulate advance deposit wagering through the use of emergency
25rulemaking in accordance with Section 5-45 of the Illinois
26Administrative Procedure Act. The General Assembly finds that

 

 

10100SB0690ham003- 504 -LRB101 04451 SMS 61572 a

1the adoption of rules to regulate advance deposit wagering is
2deemed an emergency and necessary for the public interest,
3safety, and welfare. An advance deposit wagering licensee may
4retain all moneys as agreed to by contract with an organization
5licensee. Any moneys retained by the organization licensee from
6advance deposit wagering, not including moneys retained by the
7advance deposit wagering licensee, shall be paid 50% to the
8organization licensee's purse account and 50% to the
9organization licensee. With the exception of any organization
10licensee that is owned by a publicly traded company that is
11incorporated in a state other than Illinois and advance deposit
12wagering licensees under contract with such organization
13licensees, organization licensees that maintain advance
14deposit wagering systems and advance deposit wagering
15licensees that contract with organization licensees shall
16provide sufficiently detailed monthly accountings to the
17horsemen association representing the largest number of
18owners, trainers, jockeys, or standardbred drivers who race
19horses at that organization licensee's racing meeting so that
20the horsemen association, as an interested party, can confirm
21the accuracy of the amounts paid to the purse account at the
22horsemen association's affiliated organization licensee from
23advance deposit wagering. If more than one breed races at the
24same race track facility, then the 50% of the moneys to be paid
25to an organization licensee's purse account shall be allocated
26among all organization licensees' purse accounts operating at

 

 

10100SB0690ham003- 505 -LRB101 04451 SMS 61572 a

1that race track facility proportionately based on the actual
2number of host days that the Board grants to that breed at that
3race track facility in the current calendar year. To the extent
4any fees from advance deposit wagering conducted in Illinois
5for wagers in Illinois or other states have been placed in
6escrow or otherwise withheld from wagers pending a
7determination of the legality of advance deposit wagering, no
8action shall be brought to declare such wagers or the
9disbursement of any fees previously escrowed illegal.
10        (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
11    inter-track wagering licensee other than the host track may
12    supplement the host track simulcast program with
13    additional simulcast races or race programs, provided that
14    between January 1 and the third Friday in February of any
15    year, inclusive, if no live thoroughbred racing is
16    occurring in Illinois during this period, only
17    thoroughbred races may be used for supplemental interstate
18    simulcast purposes. The Board shall withhold approval for a
19    supplemental interstate simulcast only if it finds that the
20    simulcast is clearly adverse to the integrity of racing. A
21    supplemental interstate simulcast may be transmitted from
22    an inter-track wagering licensee to its affiliated
23    non-host licensees. The interstate commission fee for a
24    supplemental interstate simulcast shall be paid by the
25    non-host licensee and its affiliated non-host licensees
26    receiving the simulcast.

 

 

10100SB0690ham003- 506 -LRB101 04451 SMS 61572 a

1        (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
2    inter-track wagering licensee other than the host track may
3    receive supplemental interstate simulcasts only with the
4    consent of the host track, except when the Board finds that
5    the simulcast is clearly adverse to the integrity of
6    racing. Consent granted under this paragraph (2) to any
7    inter-track wagering licensee shall be deemed consent to
8    all non-host licensees. The interstate commission fee for
9    the supplemental interstate simulcast shall be paid by all
10    participating non-host licensees.
11        (3) Each licensee conducting interstate simulcast
12    wagering may retain, subject to the payment of all
13    applicable taxes and the purses, an amount not to exceed
14    17% of all money wagered. If any licensee conducts the
15    pari-mutuel system wagering on races conducted at
16    racetracks in another state or country, each such race or
17    race program shall be considered a separate racing day for
18    the purpose of determining the daily handle and computing
19    the privilege tax of that daily handle as provided in
20    subsection (a) of Section 27. Until January 1, 2000, from
21    the sums permitted to be retained pursuant to this
22    subsection, each inter-track wagering location licensee
23    shall pay 1% of the pari-mutuel handle wagered on simulcast
24    wagering to the Horse Racing Tax Allocation Fund, subject
25    to the provisions of subparagraph (B) of paragraph (11) of
26    subsection (h) of Section 26 of this Act.

 

 

10100SB0690ham003- 507 -LRB101 04451 SMS 61572 a

1        (4) A licensee who receives an interstate simulcast may
2    combine its gross or net pools with pools at the sending
3    racetracks pursuant to rules established by the Board. All
4    licensees combining their gross pools at a sending
5    racetrack shall adopt the takeout take-out percentages of
6    the sending racetrack. A licensee may also establish a
7    separate pool and takeout structure for wagering purposes
8    on races conducted at race tracks outside of the State of
9    Illinois. The licensee may permit pari-mutuel wagers
10    placed in other states or countries to be combined with its
11    gross or net wagering pools or other wagering pools.
12        (5) After the payment of the interstate commission fee
13    (except for the interstate commission fee on a supplemental
14    interstate simulcast, which shall be paid by the host track
15    and by each non-host licensee through the host track
16    host-track) and all applicable State and local taxes,
17    except as provided in subsection (g) of Section 27 of this
18    Act, the remainder of moneys retained from simulcast
19    wagering pursuant to this subsection (g), and Section 26.2
20    shall be divided as follows:
21            (A) For interstate simulcast wagers made at a host
22        track, 50% to the host track and 50% to purses at the
23        host track.
24            (B) For wagers placed on interstate simulcast
25        races, supplemental simulcasts as defined in
26        subparagraphs (1) and (2), and separately pooled races

 

 

10100SB0690ham003- 508 -LRB101 04451 SMS 61572 a

1        conducted outside of the State of Illinois made at a
2        non-host licensee, 25% to the host track, 25% to the
3        non-host licensee, and 50% to the purses at the host
4        track.
5        (6) Notwithstanding any provision in this Act to the
6    contrary, non-host licensees who derive their licenses
7    from a track located in a county with a population in
8    excess of 230,000 and that borders the Mississippi River
9    may receive supplemental interstate simulcast races at all
10    times subject to Board approval, which shall be withheld
11    only upon a finding that a supplemental interstate
12    simulcast is clearly adverse to the integrity of racing.
13        (7) Effective January 1, 2017, notwithstanding any
14    provision of this Act to the contrary, after payment of all
15    applicable State and local taxes and interstate commission
16    fees, non-host licensees who derive their licenses from a
17    track located in a county with a population in excess of
18    230,000 and that borders the Mississippi River shall retain
19    50% of the retention from interstate simulcast wagers and
20    shall pay 50% to purses at the track from which the
21    non-host licensee derives its license.
22        (7.1) Notwithstanding any other provision of this Act
23    to the contrary, if no standardbred racing is conducted at
24    a racetrack located in Madison County during any calendar
25    year beginning on or after January 1, 2002, all moneys
26    derived by that racetrack from simulcast wagering and

 

 

10100SB0690ham003- 509 -LRB101 04451 SMS 61572 a

1    inter-track wagering that (1) are to be used for purses and
2    (2) are generated between the hours of 6:30 p.m. and 6:30
3    a.m. during that calendar year shall be paid as follows:
4            (A) If the licensee that conducts horse racing at
5        that racetrack requests from the Board at least as many
6        racing dates as were conducted in calendar year 2000,
7        80% shall be paid to its thoroughbred purse account;
8        and
9            (B) Twenty percent shall be deposited into the
10        Illinois Colt Stakes Purse Distribution Fund and shall
11        be paid to purses for standardbred races for Illinois
12        conceived and foaled horses conducted at any county
13        fairgrounds. The moneys deposited into the Fund
14        pursuant to this subparagraph (B) shall be deposited
15        within 2 weeks after the day they were generated, shall
16        be in addition to and not in lieu of any other moneys
17        paid to standardbred purses under this Act, and shall
18        not be commingled with other moneys paid into that
19        Fund. The moneys deposited pursuant to this
20        subparagraph (B) shall be allocated as provided by the
21        Department of Agriculture, with the advice and
22        assistance of the Illinois Standardbred Breeders Fund
23        Advisory Board.
24        (7.2) Notwithstanding any other provision of this Act
25    to the contrary, if no thoroughbred racing is conducted at
26    a racetrack located in Madison County during any calendar

 

 

10100SB0690ham003- 510 -LRB101 04451 SMS 61572 a

1    year beginning on or after January 1, 2002, all moneys
2    derived by that racetrack from simulcast wagering and
3    inter-track wagering that (1) are to be used for purses and
4    (2) are generated between the hours of 6:30 a.m. and 6:30
5    p.m. during that calendar year shall be deposited as
6    follows:
7            (A) If the licensee that conducts horse racing at
8        that racetrack requests from the Board at least as many
9        racing dates as were conducted in calendar year 2000,
10        80% shall be deposited into its standardbred purse
11        account; and
12            (B) Twenty percent shall be deposited into the
13        Illinois Colt Stakes Purse Distribution Fund. Moneys
14        deposited into the Illinois Colt Stakes Purse
15        Distribution Fund pursuant to this subparagraph (B)
16        shall be paid to Illinois conceived and foaled
17        thoroughbred breeders' programs and to thoroughbred
18        purses for races conducted at any county fairgrounds
19        for Illinois conceived and foaled horses at the
20        discretion of the Department of Agriculture, with the
21        advice and assistance of the Illinois Thoroughbred
22        Breeders Fund Advisory Board. The moneys deposited
23        into the Illinois Colt Stakes Purse Distribution Fund
24        pursuant to this subparagraph (B) shall be deposited
25        within 2 weeks after the day they were generated, shall
26        be in addition to and not in lieu of any other moneys

 

 

10100SB0690ham003- 511 -LRB101 04451 SMS 61572 a

1        paid to thoroughbred purses under this Act, and shall
2        not be commingled with other moneys deposited into that
3        Fund.
4        (7.3) (Blank).
5        (7.4) (Blank).
6        (8) Notwithstanding any provision in this Act to the
7    contrary, an organization licensee from a track located in
8    a county with a population in excess of 230,000 and that
9    borders the Mississippi River and its affiliated non-host
10    licensees shall not be entitled to share in any retention
11    generated on racing, inter-track wagering, or simulcast
12    wagering at any other Illinois wagering facility.
13        (8.1) Notwithstanding any provisions in this Act to the
14    contrary, if 2 organization licensees are conducting
15    standardbred race meetings concurrently between the hours
16    of 6:30 p.m. and 6:30 a.m., after payment of all applicable
17    State and local taxes and interstate commission fees, the
18    remainder of the amount retained from simulcast wagering
19    otherwise attributable to the host track and to host track
20    purses shall be split daily between the 2 organization
21    licensees and the purses at the tracks of the 2
22    organization licensees, respectively, based on each
23    organization licensee's share of the total live handle for
24    that day, provided that this provision shall not apply to
25    any non-host licensee that derives its license from a track
26    located in a county with a population in excess of 230,000

 

 

10100SB0690ham003- 512 -LRB101 04451 SMS 61572 a

1    and that borders the Mississippi River.
2        (9) (Blank).
3        (10) (Blank).
4        (11) (Blank).
5        (12) The Board shall have authority to compel all host
6    tracks to receive the simulcast of any or all races
7    conducted at the Springfield or DuQuoin State fairgrounds
8    and include all such races as part of their simulcast
9    programs.
10        (13) Notwithstanding any other provision of this Act,
11    in the event that the total Illinois pari-mutuel handle on
12    Illinois horse races at all wagering facilities in any
13    calendar year is less than 75% of the total Illinois
14    pari-mutuel handle on Illinois horse races at all such
15    wagering facilities for calendar year 1994, then each
16    wagering facility that has an annual total Illinois
17    pari-mutuel handle on Illinois horse races that is less
18    than 75% of the total Illinois pari-mutuel handle on
19    Illinois horse races at such wagering facility for calendar
20    year 1994, shall be permitted to receive, from any amount
21    otherwise payable to the purse account at the race track
22    with which the wagering facility is affiliated in the
23    succeeding calendar year, an amount equal to 2% of the
24    differential in total Illinois pari-mutuel handle on
25    Illinois horse races at the wagering facility between that
26    calendar year in question and 1994 provided, however, that

 

 

10100SB0690ham003- 513 -LRB101 04451 SMS 61572 a

1    a wagering facility shall not be entitled to any such
2    payment until the Board certifies in writing to the
3    wagering facility the amount to which the wagering facility
4    is entitled and a schedule for payment of the amount to the
5    wagering facility, based on: (i) the racing dates awarded
6    to the race track affiliated with the wagering facility
7    during the succeeding year; (ii) the sums available or
8    anticipated to be available in the purse account of the
9    race track affiliated with the wagering facility for purses
10    during the succeeding year; and (iii) the need to ensure
11    reasonable purse levels during the payment period. The
12    Board's certification shall be provided no later than
13    January 31 of the succeeding year. In the event a wagering
14    facility entitled to a payment under this paragraph (13) is
15    affiliated with a race track that maintains purse accounts
16    for both standardbred and thoroughbred racing, the amount
17    to be paid to the wagering facility shall be divided
18    between each purse account pro rata, based on the amount of
19    Illinois handle on Illinois standardbred and thoroughbred
20    racing respectively at the wagering facility during the
21    previous calendar year. Annually, the General Assembly
22    shall appropriate sufficient funds from the General
23    Revenue Fund to the Department of Agriculture for payment
24    into the thoroughbred and standardbred horse racing purse
25    accounts at Illinois pari-mutuel tracks. The amount paid to
26    each purse account shall be the amount certified by the

 

 

10100SB0690ham003- 514 -LRB101 04451 SMS 61572 a

1    Illinois Racing Board in January to be transferred from
2    each account to each eligible racing facility in accordance
3    with the provisions of this Section. Beginning in the
4    calendar year in which an organization licensee that is
5    eligible to receive payment under this paragraph (13)
6    begins to receive funds from gaming pursuant to an
7    organization gaming license issued under the Illinois
8    Gambling Act, the amount of the payment due to all wagering
9    facilities licensed under that organization licensee under
10    this paragraph (13) shall be the amount certified by the
11    Board in January of that year. An organization licensee and
12    its related wagering facilities shall no longer be able to
13    receive payments under this paragraph (13) beginning in the
14    year subsequent to the first year in which the organization
15    licensee begins to receive funds from gaming pursuant to an
16    organization gaming license issued under the Illinois
17    Gambling Act.
18    (h) The Board may approve and license the conduct of
19inter-track wagering and simulcast wagering by inter-track
20wagering licensees and inter-track wagering location licensees
21subject to the following terms and conditions:
22        (1) Any person licensed to conduct a race meeting (i)
23    at a track where 60 or more days of racing were conducted
24    during the immediately preceding calendar year or where
25    over the 5 immediately preceding calendar years an average
26    of 30 or more days of racing were conducted annually may be

 

 

10100SB0690ham003- 515 -LRB101 04451 SMS 61572 a

1    issued an inter-track wagering license; (ii) at a track
2    located in a county that is bounded by the Mississippi
3    River, which has a population of less than 150,000
4    according to the 1990 decennial census, and an average of
5    at least 60 days of racing per year between 1985 and 1993
6    may be issued an inter-track wagering license; or (iii) at
7    a track awarded standardbred racing dates; or (iv) at a
8    track located in Madison County that conducted at least 100
9    days of live racing during the immediately preceding
10    calendar year may be issued an inter-track wagering
11    license, unless a lesser schedule of live racing is the
12    result of (A) weather, unsafe track conditions, or other
13    acts of God; (B) an agreement between the organization
14    licensee and the associations representing the largest
15    number of owners, trainers, jockeys, or standardbred
16    drivers who race horses at that organization licensee's
17    racing meeting; or (C) a finding by the Board of
18    extraordinary circumstances and that it was in the best
19    interest of the public and the sport to conduct fewer than
20    100 days of live racing. Any such person having operating
21    control of the racing facility may receive inter-track
22    wagering location licenses. An eligible race track located
23    in a county that has a population of more than 230,000 and
24    that is bounded by the Mississippi River may establish up
25    to 9 inter-track wagering locations, an eligible race track
26    located in Stickney Township in Cook County may establish

 

 

10100SB0690ham003- 516 -LRB101 04451 SMS 61572 a

1    up to 16 inter-track wagering locations, and an eligible
2    race track located in Palatine Township in Cook County may
3    establish up to 18 inter-track wagering locations. An
4    eligible racetrack conducting standardbred racing may have
5    up to 16 inter-track wagering locations. An application for
6    said license shall be filed with the Board prior to such
7    dates as may be fixed by the Board. With an application for
8    an inter-track wagering location license there shall be
9    delivered to the Board a certified check or bank draft
10    payable to the order of the Board for an amount equal to
11    $500. The application shall be on forms prescribed and
12    furnished by the Board. The application shall comply with
13    all other rules, regulations and conditions imposed by the
14    Board in connection therewith.
15        (2) The Board shall examine the applications with
16    respect to their conformity with this Act and the rules and
17    regulations imposed by the Board. If found to be in
18    compliance with the Act and rules and regulations of the
19    Board, the Board may then issue a license to conduct
20    inter-track wagering and simulcast wagering to such
21    applicant. All such applications shall be acted upon by the
22    Board at a meeting to be held on such date as may be fixed
23    by the Board.
24        (3) In granting licenses to conduct inter-track
25    wagering and simulcast wagering, the Board shall give due
26    consideration to the best interests of the public, of horse

 

 

10100SB0690ham003- 517 -LRB101 04451 SMS 61572 a

1    racing, and of maximizing revenue to the State.
2        (4) Prior to the issuance of a license to conduct
3    inter-track wagering and simulcast wagering, the applicant
4    shall file with the Board a bond payable to the State of
5    Illinois in the sum of $50,000, executed by the applicant
6    and a surety company or companies authorized to do business
7    in this State, and conditioned upon (i) the payment by the
8    licensee of all taxes due under Section 27 or 27.1 and any
9    other monies due and payable under this Act, and (ii)
10    distribution by the licensee, upon presentation of the
11    winning ticket or tickets, of all sums payable to the
12    patrons of pari-mutuel pools.
13        (5) Each license to conduct inter-track wagering and
14    simulcast wagering shall specify the person to whom it is
15    issued, the dates on which such wagering is permitted, and
16    the track or location where the wagering is to be
17    conducted.
18        (6) All wagering under such license is subject to this
19    Act and to the rules and regulations from time to time
20    prescribed by the Board, and every such license issued by
21    the Board shall contain a recital to that effect.
22        (7) An inter-track wagering licensee or inter-track
23    wagering location licensee may accept wagers at the track
24    or location where it is licensed, or as otherwise provided
25    under this Act.
26        (8) Inter-track wagering or simulcast wagering shall

 

 

10100SB0690ham003- 518 -LRB101 04451 SMS 61572 a

1    not be conducted at any track less than 4 5 miles from a
2    track at which a racing meeting is in progress.
3        (8.1) Inter-track wagering location licensees who
4    derive their licenses from a particular organization
5    licensee shall conduct inter-track wagering and simulcast
6    wagering only at locations that are within 160 miles of
7    that race track where the particular organization licensee
8    is licensed to conduct racing. However, inter-track
9    wagering and simulcast wagering shall not be conducted by
10    those licensees at any location within 5 miles of any race
11    track at which a horse race meeting has been licensed in
12    the current year, unless the person having operating
13    control of such race track has given its written consent to
14    such inter-track wagering location licensees, which
15    consent must be filed with the Board at or prior to the
16    time application is made. In the case of any inter-track
17    wagering location licensee initially licensed after
18    December 31, 2013, inter-track wagering and simulcast
19    wagering shall not be conducted by those inter-track
20    wagering location licensees that are located outside the
21    City of Chicago at any location within 8 miles of any race
22    track at which a horse race meeting has been licensed in
23    the current year, unless the person having operating
24    control of such race track has given its written consent to
25    such inter-track wagering location licensees, which
26    consent must be filed with the Board at or prior to the

 

 

10100SB0690ham003- 519 -LRB101 04451 SMS 61572 a

1    time application is made.
2        (8.2) Inter-track wagering or simulcast wagering shall
3    not be conducted by an inter-track wagering location
4    licensee at any location within 500 feet of an existing
5    church, an or existing elementary or secondary public
6    school, or an existing elementary or secondary private
7    school registered with or recognized by the State Board of
8    Education school, nor within 500 feet of the residences of
9    more than 50 registered voters without receiving written
10    permission from a majority of the registered voters at such
11    residences. Such written permission statements shall be
12    filed with the Board. The distance of 500 feet shall be
13    measured to the nearest part of any building used for
14    worship services, education programs, residential
15    purposes, or conducting inter-track wagering by an
16    inter-track wagering location licensee, and not to
17    property boundaries. However, inter-track wagering or
18    simulcast wagering may be conducted at a site within 500
19    feet of a church, school or residences of 50 or more
20    registered voters if such church, school or residences have
21    been erected or established, or such voters have been
22    registered, after the Board issues the original
23    inter-track wagering location license at the site in
24    question. Inter-track wagering location licensees may
25    conduct inter-track wagering and simulcast wagering only
26    in areas that are zoned for commercial or manufacturing

 

 

10100SB0690ham003- 520 -LRB101 04451 SMS 61572 a

1    purposes or in areas for which a special use has been
2    approved by the local zoning authority. However, no license
3    to conduct inter-track wagering and simulcast wagering
4    shall be granted by the Board with respect to any
5    inter-track wagering location within the jurisdiction of
6    any local zoning authority which has, by ordinance or by
7    resolution, prohibited the establishment of an inter-track
8    wagering location within its jurisdiction. However,
9    inter-track wagering and simulcast wagering may be
10    conducted at a site if such ordinance or resolution is
11    enacted after the Board licenses the original inter-track
12    wagering location licensee for the site in question.
13        (9) (Blank).
14        (10) An inter-track wagering licensee or an
15    inter-track wagering location licensee may retain, subject
16    to the payment of the privilege taxes and the purses, an
17    amount not to exceed 17% of all money wagered. Each program
18    of racing conducted by each inter-track wagering licensee
19    or inter-track wagering location licensee shall be
20    considered a separate racing day for the purpose of
21    determining the daily handle and computing the privilege
22    tax or pari-mutuel tax on such daily handle as provided in
23    Section 27.
24        (10.1) Except as provided in subsection (g) of Section
25    27 of this Act, inter-track wagering location licensees
26    shall pay 1% of the pari-mutuel handle at each location to

 

 

10100SB0690ham003- 521 -LRB101 04451 SMS 61572 a

1    the municipality in which such location is situated and 1%
2    of the pari-mutuel handle at each location to the county in
3    which such location is situated. In the event that an
4    inter-track wagering location licensee is situated in an
5    unincorporated area of a county, such licensee shall pay 2%
6    of the pari-mutuel handle from such location to such
7    county.
8        (10.2) Notwithstanding any other provision of this
9    Act, with respect to inter-track wagering at a race track
10    located in a county that has a population of more than
11    230,000 and that is bounded by the Mississippi River ("the
12    first race track"), or at a facility operated by an
13    inter-track wagering licensee or inter-track wagering
14    location licensee that derives its license from the
15    organization licensee that operates the first race track,
16    on races conducted at the first race track or on races
17    conducted at another Illinois race track and
18    simultaneously televised to the first race track or to a
19    facility operated by an inter-track wagering licensee or
20    inter-track wagering location licensee that derives its
21    license from the organization licensee that operates the
22    first race track, those moneys shall be allocated as
23    follows:
24            (A) That portion of all moneys wagered on
25        standardbred racing that is required under this Act to
26        be paid to purses shall be paid to purses for

 

 

10100SB0690ham003- 522 -LRB101 04451 SMS 61572 a

1        standardbred races.
2            (B) That portion of all moneys wagered on
3        thoroughbred racing that is required under this Act to
4        be paid to purses shall be paid to purses for
5        thoroughbred races.
6        (11) (A) After payment of the privilege or pari-mutuel
7    tax, any other applicable taxes, and the costs and expenses
8    in connection with the gathering, transmission, and
9    dissemination of all data necessary to the conduct of
10    inter-track wagering, the remainder of the monies retained
11    under either Section 26 or Section 26.2 of this Act by the
12    inter-track wagering licensee on inter-track wagering
13    shall be allocated with 50% to be split between the 2
14    participating licensees and 50% to purses, except that an
15    inter-track wagering licensee that derives its license
16    from a track located in a county with a population in
17    excess of 230,000 and that borders the Mississippi River
18    shall not divide any remaining retention with the Illinois
19    organization licensee that provides the race or races, and
20    an inter-track wagering licensee that accepts wagers on
21    races conducted by an organization licensee that conducts a
22    race meet in a county with a population in excess of
23    230,000 and that borders the Mississippi River shall not
24    divide any remaining retention with that organization
25    licensee.
26        (B) From the sums permitted to be retained pursuant to

 

 

10100SB0690ham003- 523 -LRB101 04451 SMS 61572 a

1    this Act each inter-track wagering location licensee shall
2    pay (i) the privilege or pari-mutuel tax to the State; (ii)
3    4.75% of the pari-mutuel handle on inter-track wagering at
4    such location on races as purses, except that an
5    inter-track wagering location licensee that derives its
6    license from a track located in a county with a population
7    in excess of 230,000 and that borders the Mississippi River
8    shall retain all purse moneys for its own purse account
9    consistent with distribution set forth in this subsection
10    (h), and inter-track wagering location licensees that
11    accept wagers on races conducted by an organization
12    licensee located in a county with a population in excess of
13    230,000 and that borders the Mississippi River shall
14    distribute all purse moneys to purses at the operating host
15    track; (iii) until January 1, 2000, except as provided in
16    subsection (g) of Section 27 of this Act, 1% of the
17    pari-mutuel handle wagered on inter-track wagering and
18    simulcast wagering at each inter-track wagering location
19    licensee facility to the Horse Racing Tax Allocation Fund,
20    provided that, to the extent the total amount collected and
21    distributed to the Horse Racing Tax Allocation Fund under
22    this subsection (h) during any calendar year exceeds the
23    amount collected and distributed to the Horse Racing Tax
24    Allocation Fund during calendar year 1994, that excess
25    amount shall be redistributed (I) to all inter-track
26    wagering location licensees, based on each licensee's pro

 

 

10100SB0690ham003- 524 -LRB101 04451 SMS 61572 a

1    rata pro-rata share of the total handle from inter-track
2    wagering and simulcast wagering for all inter-track
3    wagering location licensees during the calendar year in
4    which this provision is applicable; then (II) the amounts
5    redistributed to each inter-track wagering location
6    licensee as described in subpart (I) shall be further
7    redistributed as provided in subparagraph (B) of paragraph
8    (5) of subsection (g) of this Section 26 provided first,
9    that the shares of those amounts, which are to be
10    redistributed to the host track or to purses at the host
11    track under subparagraph (B) of paragraph (5) of subsection
12    (g) of this Section 26 shall be redistributed based on each
13    host track's pro rata share of the total inter-track
14    wagering and simulcast wagering handle at all host tracks
15    during the calendar year in question, and second, that any
16    amounts redistributed as described in part (I) to an
17    inter-track wagering location licensee that accepts wagers
18    on races conducted by an organization licensee that
19    conducts a race meet in a county with a population in
20    excess of 230,000 and that borders the Mississippi River
21    shall be further redistributed, effective January 1, 2017,
22    as provided in paragraph (7) of subsection (g) of this
23    Section 26, with the portion of that further redistribution
24    allocated to purses at that organization licensee to be
25    divided between standardbred purses and thoroughbred
26    purses based on the amounts otherwise allocated to purses

 

 

10100SB0690ham003- 525 -LRB101 04451 SMS 61572 a

1    at that organization licensee during the calendar year in
2    question; and (iv) 8% of the pari-mutuel handle on
3    inter-track wagering wagered at such location to satisfy
4    all costs and expenses of conducting its wagering. The
5    remainder of the monies retained by the inter-track
6    wagering location licensee shall be allocated 40% to the
7    location licensee and 60% to the organization licensee
8    which provides the Illinois races to the location, except
9    that an inter-track wagering location licensee that
10    derives its license from a track located in a county with a
11    population in excess of 230,000 and that borders the
12    Mississippi River shall not divide any remaining retention
13    with the organization licensee that provides the race or
14    races and an inter-track wagering location licensee that
15    accepts wagers on races conducted by an organization
16    licensee that conducts a race meet in a county with a
17    population in excess of 230,000 and that borders the
18    Mississippi River shall not divide any remaining retention
19    with the organization licensee. Notwithstanding the
20    provisions of clauses (ii) and (iv) of this paragraph, in
21    the case of the additional inter-track wagering location
22    licenses authorized under paragraph (1) of this subsection
23    (h) by Public Act 87-110, those licensees shall pay the
24    following amounts as purses: during the first 12 months the
25    licensee is in operation, 5.25% of the pari-mutuel handle
26    wagered at the location on races; during the second 12

 

 

10100SB0690ham003- 526 -LRB101 04451 SMS 61572 a

1    months, 5.25%; during the third 12 months, 5.75%; during
2    the fourth 12 months, 6.25%; and during the fifth 12 months
3    and thereafter, 6.75%. The following amounts shall be
4    retained by the licensee to satisfy all costs and expenses
5    of conducting its wagering: during the first 12 months the
6    licensee is in operation, 8.25% of the pari-mutuel handle
7    wagered at the location; during the second 12 months,
8    8.25%; during the third 12 months, 7.75%; during the fourth
9    12 months, 7.25%; and during the fifth 12 months and
10    thereafter, 6.75%. For additional inter-track wagering
11    location licensees authorized under Public Act 89-16,
12    purses for the first 12 months the licensee is in operation
13    shall be 5.75% of the pari-mutuel wagered at the location,
14    purses for the second 12 months the licensee is in
15    operation shall be 6.25%, and purses thereafter shall be
16    6.75%. For additional inter-track location licensees
17    authorized under Public Act 89-16, the licensee shall be
18    allowed to retain to satisfy all costs and expenses: 7.75%
19    of the pari-mutuel handle wagered at the location during
20    its first 12 months of operation, 7.25% during its second
21    12 months of operation, and 6.75% thereafter.
22        (C) There is hereby created the Horse Racing Tax
23    Allocation Fund which shall remain in existence until
24    December 31, 1999. Moneys remaining in the Fund after
25    December 31, 1999 shall be paid into the General Revenue
26    Fund. Until January 1, 2000, all monies paid into the Horse

 

 

10100SB0690ham003- 527 -LRB101 04451 SMS 61572 a

1    Racing Tax Allocation Fund pursuant to this paragraph (11)
2    by inter-track wagering location licensees located in park
3    districts of 500,000 population or less, or in a
4    municipality that is not included within any park district
5    but is included within a conservation district and is the
6    county seat of a county that (i) is contiguous to the state
7    of Indiana and (ii) has a 1990 population of 88,257
8    according to the United States Bureau of the Census, and
9    operating on May 1, 1994 shall be allocated by
10    appropriation as follows:
11            Two-sevenths to the Department of Agriculture.
12        Fifty percent of this two-sevenths shall be used to
13        promote the Illinois horse racing and breeding
14        industry, and shall be distributed by the Department of
15        Agriculture upon the advice of a 9-member committee
16        appointed by the Governor consisting of the following
17        members: the Director of Agriculture, who shall serve
18        as chairman; 2 representatives of organization
19        licensees conducting thoroughbred race meetings in
20        this State, recommended by those licensees; 2
21        representatives of organization licensees conducting
22        standardbred race meetings in this State, recommended
23        by those licensees; a representative of the Illinois
24        Thoroughbred Breeders and Owners Foundation,
25        recommended by that Foundation; a representative of
26        the Illinois Standardbred Owners and Breeders

 

 

10100SB0690ham003- 528 -LRB101 04451 SMS 61572 a

1        Association, recommended by that Association; a
2        representative of the Horsemen's Benevolent and
3        Protective Association or any successor organization
4        thereto established in Illinois comprised of the
5        largest number of owners and trainers, recommended by
6        that Association or that successor organization; and a
7        representative of the Illinois Harness Horsemen's
8        Association, recommended by that Association.
9        Committee members shall serve for terms of 2 years,
10        commencing January 1 of each even-numbered year. If a
11        representative of any of the above-named entities has
12        not been recommended by January 1 of any even-numbered
13        year, the Governor shall appoint a committee member to
14        fill that position. Committee members shall receive no
15        compensation for their services as members but shall be
16        reimbursed for all actual and necessary expenses and
17        disbursements incurred in the performance of their
18        official duties. The remaining 50% of this
19        two-sevenths shall be distributed to county fairs for
20        premiums and rehabilitation as set forth in the
21        Agricultural Fair Act;
22            Four-sevenths to park districts or municipalities
23        that do not have a park district of 500,000 population
24        or less for museum purposes (if an inter-track wagering
25        location licensee is located in such a park district)
26        or to conservation districts for museum purposes (if an

 

 

10100SB0690ham003- 529 -LRB101 04451 SMS 61572 a

1        inter-track wagering location licensee is located in a
2        municipality that is not included within any park
3        district but is included within a conservation
4        district and is the county seat of a county that (i) is
5        contiguous to the state of Indiana and (ii) has a 1990
6        population of 88,257 according to the United States
7        Bureau of the Census, except that if the conservation
8        district does not maintain a museum, the monies shall
9        be allocated equally between the county and the
10        municipality in which the inter-track wagering
11        location licensee is located for general purposes) or
12        to a municipal recreation board for park purposes (if
13        an inter-track wagering location licensee is located
14        in a municipality that is not included within any park
15        district and park maintenance is the function of the
16        municipal recreation board and the municipality has a
17        1990 population of 9,302 according to the United States
18        Bureau of the Census); provided that the monies are
19        distributed to each park district or conservation
20        district or municipality that does not have a park
21        district in an amount equal to four-sevenths of the
22        amount collected by each inter-track wagering location
23        licensee within the park district or conservation
24        district or municipality for the Fund. Monies that were
25        paid into the Horse Racing Tax Allocation Fund before
26        August 9, 1991 (the effective date of Public Act

 

 

10100SB0690ham003- 530 -LRB101 04451 SMS 61572 a

1        87-110) by an inter-track wagering location licensee
2        located in a municipality that is not included within
3        any park district but is included within a conservation
4        district as provided in this paragraph shall, as soon
5        as practicable after August 9, 1991 (the effective date
6        of Public Act 87-110), be allocated and paid to that
7        conservation district as provided in this paragraph.
8        Any park district or municipality not maintaining a
9        museum may deposit the monies in the corporate fund of
10        the park district or municipality where the
11        inter-track wagering location is located, to be used
12        for general purposes; and
13            One-seventh to the Agricultural Premium Fund to be
14        used for distribution to agricultural home economics
15        extension councils in accordance with "An Act in
16        relation to additional support and finances for the
17        Agricultural and Home Economic Extension Councils in
18        the several counties of this State and making an
19        appropriation therefor", approved July 24, 1967.
20        Until January 1, 2000, all other monies paid into the
21    Horse Racing Tax Allocation Fund pursuant to this paragraph
22    (11) shall be allocated by appropriation as follows:
23            Two-sevenths to the Department of Agriculture.
24        Fifty percent of this two-sevenths shall be used to
25        promote the Illinois horse racing and breeding
26        industry, and shall be distributed by the Department of

 

 

10100SB0690ham003- 531 -LRB101 04451 SMS 61572 a

1        Agriculture upon the advice of a 9-member committee
2        appointed by the Governor consisting of the following
3        members: the Director of Agriculture, who shall serve
4        as chairman; 2 representatives of organization
5        licensees conducting thoroughbred race meetings in
6        this State, recommended by those licensees; 2
7        representatives of organization licensees conducting
8        standardbred race meetings in this State, recommended
9        by those licensees; a representative of the Illinois
10        Thoroughbred Breeders and Owners Foundation,
11        recommended by that Foundation; a representative of
12        the Illinois Standardbred Owners and Breeders
13        Association, recommended by that Association; a
14        representative of the Horsemen's Benevolent and
15        Protective Association or any successor organization
16        thereto established in Illinois comprised of the
17        largest number of owners and trainers, recommended by
18        that Association or that successor organization; and a
19        representative of the Illinois Harness Horsemen's
20        Association, recommended by that Association.
21        Committee members shall serve for terms of 2 years,
22        commencing January 1 of each even-numbered year. If a
23        representative of any of the above-named entities has
24        not been recommended by January 1 of any even-numbered
25        year, the Governor shall appoint a committee member to
26        fill that position. Committee members shall receive no

 

 

10100SB0690ham003- 532 -LRB101 04451 SMS 61572 a

1        compensation for their services as members but shall be
2        reimbursed for all actual and necessary expenses and
3        disbursements incurred in the performance of their
4        official duties. The remaining 50% of this
5        two-sevenths shall be distributed to county fairs for
6        premiums and rehabilitation as set forth in the
7        Agricultural Fair Act;
8            Four-sevenths to museums and aquariums located in
9        park districts of over 500,000 population; provided
10        that the monies are distributed in accordance with the
11        previous year's distribution of the maintenance tax
12        for such museums and aquariums as provided in Section 2
13        of the Park District Aquarium and Museum Act; and
14            One-seventh to the Agricultural Premium Fund to be
15        used for distribution to agricultural home economics
16        extension councils in accordance with "An Act in
17        relation to additional support and finances for the
18        Agricultural and Home Economic Extension Councils in
19        the several counties of this State and making an
20        appropriation therefor", approved July 24, 1967. This
21        subparagraph (C) shall be inoperative and of no force
22        and effect on and after January 1, 2000.
23            (D) Except as provided in paragraph (11) of this
24        subsection (h), with respect to purse allocation from
25        inter-track wagering, the monies so retained shall be
26        divided as follows:

 

 

10100SB0690ham003- 533 -LRB101 04451 SMS 61572 a

1                (i) If the inter-track wagering licensee,
2            except an inter-track wagering licensee that
3            derives its license from an organization licensee
4            located in a county with a population in excess of
5            230,000 and bounded by the Mississippi River, is
6            not conducting its own race meeting during the same
7            dates, then the entire purse allocation shall be to
8            purses at the track where the races wagered on are
9            being conducted.
10                (ii) If the inter-track wagering licensee,
11            except an inter-track wagering licensee that
12            derives its license from an organization licensee
13            located in a county with a population in excess of
14            230,000 and bounded by the Mississippi River, is
15            also conducting its own race meeting during the
16            same dates, then the purse allocation shall be as
17            follows: 50% to purses at the track where the races
18            wagered on are being conducted; 50% to purses at
19            the track where the inter-track wagering licensee
20            is accepting such wagers.
21                (iii) If the inter-track wagering is being
22            conducted by an inter-track wagering location
23            licensee, except an inter-track wagering location
24            licensee that derives its license from an
25            organization licensee located in a county with a
26            population in excess of 230,000 and bounded by the

 

 

10100SB0690ham003- 534 -LRB101 04451 SMS 61572 a

1            Mississippi River, the entire purse allocation for
2            Illinois races shall be to purses at the track
3            where the race meeting being wagered on is being
4            held.
5        (12) The Board shall have all powers necessary and
6    proper to fully supervise and control the conduct of
7    inter-track wagering and simulcast wagering by inter-track
8    wagering licensees and inter-track wagering location
9    licensees, including, but not limited to the following:
10            (A) The Board is vested with power to promulgate
11        reasonable rules and regulations for the purpose of
12        administering the conduct of this wagering and to
13        prescribe reasonable rules, regulations and conditions
14        under which such wagering shall be held and conducted.
15        Such rules and regulations are to provide for the
16        prevention of practices detrimental to the public
17        interest and for the best interests of said wagering
18        and to impose penalties for violations thereof.
19            (B) The Board, and any person or persons to whom it
20        delegates this power, is vested with the power to enter
21        the facilities of any licensee to determine whether
22        there has been compliance with the provisions of this
23        Act and the rules and regulations relating to the
24        conduct of such wagering.
25            (C) The Board, and any person or persons to whom it
26        delegates this power, may eject or exclude from any

 

 

10100SB0690ham003- 535 -LRB101 04451 SMS 61572 a

1        licensee's facilities, any person whose conduct or
2        reputation is such that his presence on such premises
3        may, in the opinion of the Board, call into the
4        question the honesty and integrity of, or interfere
5        with the orderly conduct of such wagering; provided,
6        however, that no person shall be excluded or ejected
7        from such premises solely on the grounds of race,
8        color, creed, national origin, ancestry, or sex.
9            (D) (Blank).
10            (E) The Board is vested with the power to appoint
11        delegates to execute any of the powers granted to it
12        under this Section for the purpose of administering
13        this wagering and any rules and regulations
14        promulgated in accordance with this Act.
15            (F) The Board shall name and appoint a State
16        director of this wagering who shall be a representative
17        of the Board and whose duty it shall be to supervise
18        the conduct of inter-track wagering as may be provided
19        for by the rules and regulations of the Board; such
20        rules and regulation shall specify the method of
21        appointment and the Director's powers, authority and
22        duties.
23            (G) The Board is vested with the power to impose
24        civil penalties of up to $5,000 against individuals and
25        up to $10,000 against licensees for each violation of
26        any provision of this Act relating to the conduct of

 

 

10100SB0690ham003- 536 -LRB101 04451 SMS 61572 a

1        this wagering, any rules adopted by the Board, any
2        order of the Board or any other action which in the
3        Board's discretion, is a detriment or impediment to
4        such wagering.
5        (13) The Department of Agriculture may enter into
6    agreements with licensees authorizing such licensees to
7    conduct inter-track wagering on races to be held at the
8    licensed race meetings conducted by the Department of
9    Agriculture. Such agreement shall specify the races of the
10    Department of Agriculture's licensed race meeting upon
11    which the licensees will conduct wagering. In the event
12    that a licensee conducts inter-track pari-mutuel wagering
13    on races from the Illinois State Fair or DuQuoin State Fair
14    which are in addition to the licensee's previously approved
15    racing program, those races shall be considered a separate
16    racing day for the purpose of determining the daily handle
17    and computing the privilege or pari-mutuel tax on that
18    daily handle as provided in Sections 27 and 27.1. Such
19    agreements shall be approved by the Board before such
20    wagering may be conducted. In determining whether to grant
21    approval, the Board shall give due consideration to the
22    best interests of the public and of horse racing. The
23    provisions of paragraphs (1), (8), (8.1), and (8.2) of
24    subsection (h) of this Section which are not specified in
25    this paragraph (13) shall not apply to licensed race
26    meetings conducted by the Department of Agriculture at the

 

 

10100SB0690ham003- 537 -LRB101 04451 SMS 61572 a

1    Illinois State Fair in Sangamon County or the DuQuoin State
2    Fair in Perry County, or to any wagering conducted on those
3    race meetings.
4        (14) An inter-track wagering location license
5    authorized by the Board in 2016 that is owned and operated
6    by a race track in Rock Island County shall be transferred
7    to a commonly owned race track in Cook County on August 12,
8    2016 (the effective date of Public Act 99-757). The
9    licensee shall retain its status in relation to purse
10    distribution under paragraph (11) of this subsection (h)
11    following the transfer to the new entity. The pari-mutuel
12    tax credit under Section 32.1 shall not be applied toward
13    any pari-mutuel tax obligation of the inter-track wagering
14    location licensee of the license that is transferred under
15    this paragraph (14).
16    (i) Notwithstanding the other provisions of this Act, the
17conduct of wagering at wagering facilities is authorized on all
18days, except as limited by subsection (b) of Section 19 of this
19Act.
20(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
21100-201, eff. 8-18-17; 100-627, eff. 7-20-18; 100-1152, eff.
2212-14-18; revised 1-13-19.)
 
23    (230 ILCS 5/26.8)
24    Sec. 26.8. Beginning on February 1, 2014 and through
25December 31, 2020, each wagering licensee may impose a

 

 

10100SB0690ham003- 538 -LRB101 04451 SMS 61572 a

1surcharge of up to 0.5% on winning wagers and winnings from
2wagers. The surcharge shall be deducted from winnings prior to
3payout. All amounts collected from the imposition of this
4surcharge shall be evenly distributed to the organization
5licensee and the purse account of the organization licensee
6with which the licensee is affiliated. The amounts distributed
7under this Section shall be in addition to the amounts paid
8pursuant to paragraph (10) of subsection (h) of Section 26,
9Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
10(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)
 
11    (230 ILCS 5/26.9)
12    Sec. 26.9. Beginning on February 1, 2014 and through
13December 31, 2020, in addition to the surcharge imposed in
14Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
15licensee shall impose a surcharge of 0.2% on winning wagers and
16winnings from wagers. The surcharge shall be deducted from
17winnings prior to payout. All amounts collected from the
18surcharges imposed under this Section shall be remitted to the
19Board. From amounts collected under this Section, the Board
20shall deposit an amount not to exceed $100,000 annually into
21the Quarter Horse Purse Fund and all remaining amounts into the
22Horse Racing Fund.
23(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)
 
24    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)

 

 

10100SB0690ham003- 539 -LRB101 04451 SMS 61572 a

1    Sec. 27. (a) In addition to the organization license fee
2provided by this Act, until January 1, 2000, a graduated
3privilege tax is hereby imposed for conducting the pari-mutuel
4system of wagering permitted under this Act. Until January 1,
52000, except as provided in subsection (g) of Section 27 of
6this Act, all of the breakage of each racing day held by any
7licensee in the State shall be paid to the State. Until January
81, 2000, such daily graduated privilege tax shall be paid by
9the licensee from the amount permitted to be retained under
10this Act. Until January 1, 2000, each day's graduated privilege
11tax, breakage, and Horse Racing Tax Allocation funds shall be
12remitted to the Department of Revenue within 48 hours after the
13close of the racing day upon which it is assessed or within
14such other time as the Board prescribes. The privilege tax
15hereby imposed, until January 1, 2000, shall be a flat tax at
16the rate of 2% of the daily pari-mutuel handle except as
17provided in Section 27.1.
18    In addition, every organization licensee, except as
19provided in Section 27.1 of this Act, which conducts multiple
20wagering shall pay, until January 1, 2000, as a privilege tax
21on multiple wagers an amount equal to 1.25% of all moneys
22wagered each day on such multiple wagers, plus an additional
23amount equal to 3.5% of the amount wagered each day on any
24other multiple wager which involves a single betting interest
25on 3 or more horses. The licensee shall remit the amount of
26such taxes to the Department of Revenue within 48 hours after

 

 

10100SB0690ham003- 540 -LRB101 04451 SMS 61572 a

1the close of the racing day on which it is assessed or within
2such other time as the Board prescribes.
3    This subsection (a) shall be inoperative and of no force
4and effect on and after January 1, 2000.
5    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
6at the rate of 1.5% of the daily pari-mutuel handle is imposed
7at all pari-mutuel wagering facilities and on advance deposit
8wagering from a location other than a wagering facility, except
9as otherwise provided for in this subsection (a-5). In addition
10to the pari-mutuel tax imposed on advance deposit wagering
11pursuant to this subsection (a-5), beginning on August 24, 2012
12(the effective date of Public Act 97-1060) and through December
1331, 2020, an additional pari-mutuel tax at the rate of 0.25%
14shall be imposed on advance deposit wagering. Until August 25,
152012, the additional 0.25% pari-mutuel tax imposed on advance
16deposit wagering by Public Act 96-972 shall be deposited into
17the Quarter Horse Purse Fund, which shall be created as a
18non-appropriated trust fund administered by the Board for
19grants to thoroughbred organization licensees for payment of
20purses for quarter horse races conducted by the organization
21licensee. Beginning on August 26, 2012, the additional 0.25%
22pari-mutuel tax imposed on advance deposit wagering shall be
23deposited into the Standardbred Purse Fund, which shall be
24created as a non-appropriated trust fund administered by the
25Board, for grants to the standardbred organization licensees
26for payment of purses for standardbred horse races conducted by

 

 

10100SB0690ham003- 541 -LRB101 04451 SMS 61572 a

1the organization licensee. Thoroughbred organization licensees
2may petition the Board to conduct quarter horse racing and
3receive purse grants from the Quarter Horse Purse Fund. The
4Board shall have complete discretion in distributing the
5Quarter Horse Purse Fund to the petitioning organization
6licensees. Beginning on July 26, 2010 (the effective date of
7Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
8the daily pari-mutuel handle is imposed at a pari-mutuel
9facility whose license is derived from a track located in a
10county that borders the Mississippi River and conducted live
11racing in the previous year. The pari-mutuel tax imposed by
12this subsection (a-5) shall be remitted to the Department of
13Revenue within 48 hours after the close of the racing day upon
14which it is assessed or within such other time as the Board
15prescribes.
16    (a-10) Beginning on the date when an organization licensee
17begins conducting gaming pursuant to an organization gaming
18license, the following pari-mutuel tax is imposed upon an
19organization licensee on Illinois races at the licensee's
20racetrack:
21        1.5% of the pari-mutuel handle at or below the average
22    daily pari-mutuel handle for 2011.
23        2% of the pari-mutuel handle above the average daily
24    pari-mutuel handle for 2011 up to 125% of the average daily
25    pari-mutuel handle for 2011.
26        2.5% of the pari-mutuel handle 125% or more above the

 

 

10100SB0690ham003- 542 -LRB101 04451 SMS 61572 a

1    average daily pari-mutuel handle for 2011 up to 150% of the
2    average daily pari-mutuel handle for 2011.
3        3% of the pari-mutuel handle 150% or more above the
4    average daily pari-mutuel handle for 2011 up to 175% of the
5    average daily pari-mutuel handle for 2011.
6        3.5% of the pari-mutuel handle 175% or more above the
7    average daily pari-mutuel handle for 2011.
8    The pari-mutuel tax imposed by this subsection (a-10) shall
9be remitted to the Board within 48 hours after the close of the
10racing day upon which it is assessed or within such other time
11as the Board prescribes.
12    (b) On or before December 31, 1999, in the event that any
13organization licensee conducts 2 separate programs of races on
14any day, each such program shall be considered a separate
15racing day for purposes of determining the daily handle and
16computing the privilege tax on such daily handle as provided in
17subsection (a) of this Section.
18    (c) Licensees shall at all times keep accurate books and
19records of all monies wagered on each day of a race meeting and
20of the taxes paid to the Department of Revenue under the
21provisions of this Section. The Board or its duly authorized
22representative or representatives shall at all reasonable
23times have access to such records for the purpose of examining
24and checking the same and ascertaining whether the proper
25amount of taxes is being paid as provided. The Board shall
26require verified reports and a statement of the total of all

 

 

10100SB0690ham003- 543 -LRB101 04451 SMS 61572 a

1monies wagered daily at each wagering facility upon which the
2taxes are assessed and may prescribe forms upon which such
3reports and statement shall be made.
4    (d) Before a license is issued or re-issued, the licensee
5shall post a bond in the sum of $500,000 to the State of
6Illinois. The bond shall be used to guarantee that the licensee
7faithfully makes the payments, keeps the books and records and
8makes reports, and conducts games of chance in conformity with
9this Act and the rules adopted by the Board. The bond shall not
10be canceled by a surety on less than 30 days' notice in writing
11to the Board. If a bond is canceled and the licensee fails to
12file a new bond with the Board in the required amount on or
13before the effective date of cancellation, the licensee's
14license shall be revoked. The total and aggregate liability of
15the surety on the bond is limited to the amount specified in
16the bond. Any licensee failing or refusing to pay the amount of
17any tax due under this Section shall be guilty of a business
18offense and upon conviction shall be fined not more than $5,000
19in addition to the amount found due as tax under this Section.
20Each day's violation shall constitute a separate offense. All
21fines paid into Court by a licensee hereunder shall be
22transmitted and paid over by the Clerk of the Court to the
23Board.
24    (e) No other license fee, privilege tax, excise tax, or
25racing fee, except as provided in this Act, shall be assessed
26or collected from any such licensee by the State.

 

 

10100SB0690ham003- 544 -LRB101 04451 SMS 61572 a

1    (f) No other license fee, privilege tax, excise tax or
2racing fee shall be assessed or collected from any such
3licensee by units of local government except as provided in
4paragraph 10.1 of subsection (h) and subsection (f) of Section
526 of this Act. However, any municipality that has a Board
6licensed horse race meeting at a race track wholly within its
7corporate boundaries or a township that has a Board licensed
8horse race meeting at a race track wholly within the
9unincorporated area of the township may charge a local
10amusement tax not to exceed 10¢ per admission to such horse
11race meeting by the enactment of an ordinance. However, any
12municipality or county that has a Board licensed inter-track
13wagering location facility wholly within its corporate
14boundaries may each impose an admission fee not to exceed $1.00
15per admission to such inter-track wagering location facility,
16so that a total of not more than $2.00 per admission may be
17imposed. Except as provided in subparagraph (g) of Section 27
18of this Act, the inter-track wagering location licensee shall
19collect any and all such fees and within 48 hours remit the
20fees to the Board as the Board prescribes, which shall,
21pursuant to rule, cause the fees to be distributed to the
22county or municipality.
23    (g) Notwithstanding any provision in this Act to the
24contrary, if in any calendar year the total taxes and fees from
25wagering on live racing and from inter-track wagering required
26to be collected from licensees and distributed under this Act

 

 

10100SB0690ham003- 545 -LRB101 04451 SMS 61572 a

1to all State and local governmental authorities exceeds the
2amount of such taxes and fees distributed to each State and
3local governmental authority to which each State and local
4governmental authority was entitled under this Act for calendar
5year 1994, then the first $11 million of that excess amount
6shall be allocated at the earliest possible date for
7distribution as purse money for the succeeding calendar year.
8Upon reaching the 1994 level, and until the excess amount of
9taxes and fees exceeds $11 million, the Board shall direct all
10licensees to cease paying the subject taxes and fees and the
11Board shall direct all licensees to allocate any such excess
12amount for purses as follows:
13        (i) the excess amount shall be initially divided
14    between thoroughbred and standardbred purses based on the
15    thoroughbred's and standardbred's respective percentages
16    of total Illinois live wagering in calendar year 1994;
17        (ii) each thoroughbred and standardbred organization
18    licensee issued an organization licensee in that
19    succeeding allocation year shall be allocated an amount
20    equal to the product of its percentage of total Illinois
21    live thoroughbred or standardbred wagering in calendar
22    year 1994 (the total to be determined based on the sum of
23    1994 on-track wagering for all organization licensees
24    issued organization licenses in both the allocation year
25    and the preceding year) multiplied by the total amount
26    allocated for standardbred or thoroughbred purses,

 

 

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1    provided that the first $1,500,000 of the amount allocated
2    to standardbred purses under item (i) shall be allocated to
3    the Department of Agriculture to be expended with the
4    assistance and advice of the Illinois Standardbred
5    Breeders Funds Advisory Board for the purposes listed in
6    subsection (g) of Section 31 of this Act, before the amount
7    allocated to standardbred purses under item (i) is
8    allocated to standardbred organization licensees in the
9    succeeding allocation year.
10    To the extent the excess amount of taxes and fees to be
11collected and distributed to State and local governmental
12authorities exceeds $11 million, that excess amount shall be
13collected and distributed to State and local authorities as
14provided for under this Act.
15(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)
 
16    (230 ILCS 5/29)  (from Ch. 8, par. 37-29)
17    Sec. 29. (a) After the privilege or pari-mutuel tax
18established in Sections 26(f), 27, and 27.1 is paid to the
19State from the monies retained by the organization licensee
20pursuant to Sections 26, 26.2, and 26.3, the remainder of those
21monies retained pursuant to Sections 26 and 26.2, except as
22provided in subsection (g) of Section 27 of this Act, shall be
23allocated evenly to the organization licensee and as purses.
24    (b) (Blank).
25    (c) (Blank).

 

 

10100SB0690ham003- 547 -LRB101 04451 SMS 61572 a

1    (d) From the amounts generated for purses from all sources,
2including, but not limited to, amounts generated from wagering
3conducted by organization licensees, organization gaming
4licensees, inter-track wagering licensees, inter-track
5wagering location licensees, and advance deposit wagering
6licensees, an organization licensee shall pay to an
7organization representing the largest number of horse owners
8and trainers in Illinois, for thoroughbred and standardbred
9horses that race at the track of the organization licensee, an
10amount equal to at least 5% of any and all revenue earned by
11the organization licensee for purses for that calendar year. A
12contract with the appropriate thoroughbred or standardbred
13horsemen organization shall be negotiated and signed by the
14organization licensee before the beginning of each calendar
15year. Amounts may be used for any legal purpose, including, but
16not limited to, operational expenses, programs for backstretch
17workers, retirement plans, diversity scholarships, horse
18aftercare programs, workers compensation insurance fees, and
19horse ownership programs. Financial statements highlighting
20how the funding is spent shall be provided upon request to the
21organization licensee. The appropriate thoroughbred or
22standardbred horsemen organization shall make that information
23available on its website.
24     Each organization licensee and inter-track wagering
25licensee from the money retained for purses as set forth in
26subsection (a) of this Section, shall pay to an organization

 

 

10100SB0690ham003- 548 -LRB101 04451 SMS 61572 a

1representing the largest number of horse owners and trainers
2which has negotiated a contract with the organization licensee
3for such purpose an amount equal to at least 1% of the
4organization licensee's and inter-track wagering licensee's
5retention of the pari-mutuel handle for the racing season. Each
6inter-track wagering location licensee, from the 4% of its
7handle required to be paid as purses under paragraph (11) of
8subsection (h) of Section 26 of this Act, shall pay to the
9contractually established representative organization 2% of
10that 4%, provided that the payments so made to the organization
11shall not exceed a total of $125,000 in any calendar year. Such
12contract shall be negotiated and signed prior to the beginning
13of the racing season.
14(Source: P.A. 91-40, eff. 6-25-99.)
 
15    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
16    Sec. 30. (a) The General Assembly declares that it is the
17policy of this State to encourage the breeding of thoroughbred
18horses in this State and the ownership of such horses by
19residents of this State in order to provide for: sufficient
20numbers of high quality thoroughbred horses to participate in
21thoroughbred racing meetings in this State, and to establish
22and preserve the agricultural and commercial benefits of such
23breeding and racing industries to the State of Illinois. It is
24the intent of the General Assembly to further this policy by
25the provisions of this Act.

 

 

10100SB0690ham003- 549 -LRB101 04451 SMS 61572 a

1    (b) Each organization licensee conducting a thoroughbred
2racing meeting pursuant to this Act shall provide at least two
3races each day limited to Illinois conceived and foaled horses
4or Illinois foaled horses or both. A minimum of 6 races shall
5be conducted each week limited to Illinois conceived and foaled
6or Illinois foaled horses or both. No horses shall be permitted
7to start in such races unless duly registered under the rules
8of the Department of Agriculture.
9    (c) Conditions of races under subsection (b) shall be
10commensurate with past performance, quality, and class of
11Illinois conceived and foaled and Illinois foaled horses
12available. If, however, sufficient competition cannot be had
13among horses of that class on any day, the races may, with
14consent of the Board, be eliminated for that day and substitute
15races provided.
16    (d) There is hereby created a special fund of the State
17Treasury to be known as the Illinois Thoroughbred Breeders
18Fund.
19    Beginning on the effective date of this amendatory Act of
20the 101st General Assembly, the Illinois Thoroughbred Breeders
21Fund shall become a non-appropriated trust fund held separate
22from State moneys. Expenditures from this Fund shall no longer
23be subject to appropriation.
24    Except as provided in subsection (g) of Section 27 of this
25Act, 8.5% of all the monies received by the State as privilege
26taxes on Thoroughbred racing meetings shall be paid into the

 

 

10100SB0690ham003- 550 -LRB101 04451 SMS 61572 a

1Illinois Thoroughbred Breeders Fund.
2    Notwithstanding any provision of law to the contrary,
3amounts deposited into the Illinois Thoroughbred Breeders Fund
4from revenues generated by gaming pursuant to an organization
5gaming license issued under the Illinois Gambling Act after the
6effective date of this amendatory Act of the 101st General
7Assembly shall be in addition to tax and fee amounts paid under
8this Section for calendar year 2019 and thereafter.
9    (e) The Illinois Thoroughbred Breeders Fund shall be
10administered by the Department of Agriculture with the advice
11and assistance of the Advisory Board created in subsection (f)
12of this Section.
13    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
14shall consist of the Director of the Department of Agriculture,
15who shall serve as Chairman; a member of the Illinois Racing
16Board, designated by it; 2 representatives of the organization
17licensees conducting thoroughbred racing meetings, recommended
18by them; 2 representatives of the Illinois Thoroughbred
19Breeders and Owners Foundation, recommended by it; one
20representative and 2 representatives of the Horsemen's
21Benevolent Protective Association; and one representative from
22the Illinois Thoroughbred Horsemen's Association or any
23successor organization established in Illinois comprised of
24the largest number of owners and trainers, recommended by it,
25with one representative of the Horsemen's Benevolent and
26Protective Association to come from its Illinois Division, and

 

 

10100SB0690ham003- 551 -LRB101 04451 SMS 61572 a

1one from its Chicago Division. Advisory Board members shall
2serve for 2 years commencing January 1 of each odd numbered
3year. If representatives of the organization licensees
4conducting thoroughbred racing meetings, the Illinois
5Thoroughbred Breeders and Owners Foundation, and the
6Horsemen's Benevolent Protection Association, and the Illinois
7Thoroughbred Horsemen's Association have not been recommended
8by January 1, of each odd numbered year, the Director of the
9Department of Agriculture shall make an appointment for the
10organization failing to so recommend a member of the Advisory
11Board. Advisory Board members shall receive no compensation for
12their services as members but shall be reimbursed for all
13actual and necessary expenses and disbursements incurred in the
14execution of their official duties.
15    (g) No monies shall be expended from the Illinois
16Thoroughbred Breeders Fund except as appropriated by the
17General Assembly. Monies expended appropriated from the
18Illinois Thoroughbred Breeders Fund shall be expended by the
19Department of Agriculture, with the advice and assistance of
20the Illinois Thoroughbred Breeders Fund Advisory Board, for the
21following purposes only:
22        (1) To provide purse supplements to owners of horses
23    participating in races limited to Illinois conceived and
24    foaled and Illinois foaled horses. Any such purse
25    supplements shall not be included in and shall be paid in
26    addition to any purses, stakes, or breeders' awards offered

 

 

10100SB0690ham003- 552 -LRB101 04451 SMS 61572 a

1    by each organization licensee as determined by agreement
2    between such organization licensee and an organization
3    representing the horsemen. No monies from the Illinois
4    Thoroughbred Breeders Fund shall be used to provide purse
5    supplements for claiming races in which the minimum
6    claiming price is less than $7,500.
7        (2) To provide stakes and awards to be paid to the
8    owners of the winning horses in certain races limited to
9    Illinois conceived and foaled and Illinois foaled horses
10    designated as stakes races.
11        (2.5) To provide an award to the owner or owners of an
12    Illinois conceived and foaled or Illinois foaled horse that
13    wins a maiden special weight, an allowance, overnight
14    handicap race, or claiming race with claiming price of
15    $10,000 or more providing the race is not restricted to
16    Illinois conceived and foaled or Illinois foaled horses.
17    Awards shall also be provided to the owner or owners of
18    Illinois conceived and foaled and Illinois foaled horses
19    that place second or third in those races. To the extent
20    that additional moneys are required to pay the minimum
21    additional awards of 40% of the purse the horse earns for
22    placing first, second or third in those races for Illinois
23    foaled horses and of 60% of the purse the horse earns for
24    placing first, second or third in those races for Illinois
25    conceived and foaled horses, those moneys shall be provided
26    from the purse account at the track where earned.

 

 

10100SB0690ham003- 553 -LRB101 04451 SMS 61572 a

1        (3) To provide stallion awards to the owner or owners
2    of any stallion that is duly registered with the Illinois
3    Thoroughbred Breeders Fund Program prior to the effective
4    date of this amendatory Act of 1995 whose duly registered
5    Illinois conceived and foaled offspring wins a race
6    conducted at an Illinois thoroughbred racing meeting other
7    than a claiming race, provided that the stallion stood
8    service within Illinois at the time the offspring was
9    conceived and that the stallion did not stand for service
10    outside of Illinois at any time during the year in which
11    the offspring was conceived. Such award shall not be paid
12    to the owner or owners of an Illinois stallion that served
13    outside this State at any time during the calendar year in
14    which such race was conducted.
15        (4) To provide $75,000 annually for purses to be
16    distributed to county fairs that provide for the running of
17    races during each county fair exclusively for the
18    thoroughbreds conceived and foaled in Illinois. The
19    conditions of the races shall be developed by the county
20    fair association and reviewed by the Department with the
21    advice and assistance of the Illinois Thoroughbred
22    Breeders Fund Advisory Board. There shall be no wagering of
23    any kind on the running of Illinois conceived and foaled
24    races at county fairs.
25        (4.1) To provide purse money for an Illinois stallion
26    stakes program.

 

 

10100SB0690ham003- 554 -LRB101 04451 SMS 61572 a

1        (5) No less than 90% 80% of all monies expended
2    appropriated from the Illinois Thoroughbred Breeders Fund
3    shall be expended for the purposes in (1), (2), (2.5), (3),
4    (4), (4.1), and (5) as shown above.
5        (6) To provide for educational programs regarding the
6    thoroughbred breeding industry.
7        (7) To provide for research programs concerning the
8    health, development and care of the thoroughbred horse.
9        (8) To provide for a scholarship and training program
10    for students of equine veterinary medicine.
11        (9) To provide for dissemination of public information
12    designed to promote the breeding of thoroughbred horses in
13    Illinois.
14        (10) To provide for all expenses incurred in the
15    administration of the Illinois Thoroughbred Breeders Fund.
16    (h) The Illinois Thoroughbred Breeders Fund is not subject
17to administrative charges or chargebacks, including, but not
18limited to, those authorized under Section 8h of the State
19Finance Act. Whenever the Governor finds that the amount in the
20Illinois Thoroughbred Breeders Fund is more than the total of
21the outstanding appropriations from such fund, the Governor
22shall notify the State Comptroller and the State Treasurer of
23such fact. The Comptroller and the State Treasurer, upon
24receipt of such notification, shall transfer such excess amount
25from the Illinois Thoroughbred Breeders Fund to the General
26Revenue Fund.

 

 

10100SB0690ham003- 555 -LRB101 04451 SMS 61572 a

1    (i) A sum equal to 13% of the first prize money of every
2purse won by an Illinois foaled or Illinois conceived and
3foaled horse in races not limited to Illinois foaled horses or
4Illinois conceived and foaled horses, or both, shall be paid by
5the organization licensee conducting the horse race meeting.
6Such sum shall be paid 50% from the organization licensee's
7share of the money wagered and 50% from the purse account as
8follows: 11 1/2% to the breeder of the winning horse and 1 1/2%
9to the organization representing thoroughbred breeders and
10owners who representative serves on the Illinois Thoroughbred
11Breeders Fund Advisory Board for verifying the amounts of
12breeders' awards earned, ensuring their distribution in
13accordance with this Act, and servicing and promoting the
14Illinois thoroughbred horse racing industry. Beginning in the
15calendar year in which an organization licensee that is
16eligible to receive payments under paragraph (13) of subsection
17(g) of Section 26 of this Act begins to receive funds from
18gaming pursuant to an organization gaming license issued under
19the Illinois Gambling Act, a sum equal to 21 1/2% of the first
20prize money of every purse won by an Illinois foaled or an
21Illinois conceived and foaled horse in races not limited to an
22Illinois conceived and foaled horse, or both, shall be paid 30%
23from the organization licensee's account and 70% from the purse
24account as follows: 20% to the breeder of the winning horse and
251 1/2% to the organization representing thoroughbred breeders
26and owners whose representatives serve on the Illinois

 

 

10100SB0690ham003- 556 -LRB101 04451 SMS 61572 a

1Thoroughbred Breeders Fund Advisory Board for verifying the
2amounts of breeders' awards earned, ensuring their
3distribution in accordance with this Act, and servicing and
4promoting the Illinois Thoroughbred racing industry. A sum
5equal to 12 1/2% of the first prize money of every purse won by
6an Illinois foaled or an Illinois conceived and foaled horse in
7races not limited to Illinois foaled horses or Illinois
8conceived and foaled horses, or both, shall be paid by the
9organization licensee conducting the horse race meeting. Such
10sum shall be paid from the organization licensee's share of the
11money wagered as follows: 11 1/2% to the breeder of the winning
12horse and 1% to the organization representing thoroughbred
13breeders and owners whose representative serves on the Illinois
14Thoroughbred Breeders Fund Advisory Board for verifying the
15amounts of breeders' awards earned, assuring their
16distribution in accordance with this Act, and servicing and
17promoting the Illinois thoroughbred horse racing industry. The
18organization representing thoroughbred breeders and owners
19shall cause all expenditures of monies received under this
20subsection (i) to be audited at least annually by a registered
21public accountant. The organization shall file copies of each
22annual audit with the Racing Board, the Clerk of the House of
23Representatives and the Secretary of the Senate, and shall make
24copies of each annual audit available to the public upon
25request and upon payment of the reasonable cost of photocopying
26the requested number of copies. Such payments shall not reduce

 

 

10100SB0690ham003- 557 -LRB101 04451 SMS 61572 a

1any award to the owner of the horse or reduce the taxes payable
2under this Act. Upon completion of its racing meet, each
3organization licensee shall deliver to the organization
4representing thoroughbred breeders and owners whose
5representative serves on the Illinois Thoroughbred Breeders
6Fund Advisory Board a listing of all the Illinois foaled and
7the Illinois conceived and foaled horses which won breeders'
8awards and the amount of such breeders' awards under this
9subsection to verify accuracy of payments and assure proper
10distribution of breeders' awards in accordance with the
11provisions of this Act. Such payments shall be delivered by the
12organization licensee within 30 days of the end of each race
13meeting.
14    (j) A sum equal to 13% of the first prize money won in
15every race limited to Illinois foaled horses or Illinois
16conceived and foaled horses, or both, shall be paid in the
17following manner by the organization licensee conducting the
18horse race meeting, 50% from the organization licensee's share
19of the money wagered and 50% from the purse account as follows:
2011 1/2% to the breeders of the horses in each such race which
21are the official first, second, third, and fourth finishers and
221 1/2% to the organization representing thoroughbred breeders
23and owners whose representatives serve on the Illinois
24Thoroughbred Breeders Fund Advisory Board for verifying the
25amounts of breeders' awards earned, ensuring their proper
26distribution in accordance with this Act, and servicing and

 

 

10100SB0690ham003- 558 -LRB101 04451 SMS 61572 a

1promoting the Illinois horse racing industry. Beginning in the
2calendar year in which an organization licensee that is
3eligible to receive payments under paragraph (13) of subsection
4(g) of Section 26 of this Act begins to receive funds from
5gaming pursuant to an organization gaming license issued under
6the Illinois Gambling Act, a sum of 21 1/2% of every purse in a
7race limited to Illinois foaled horses or Illinois conceived
8and foaled horses, or both, shall be paid by the organization
9licensee conducting the horse race meeting. Such sum shall be
10paid 30% from the organization licensee's account and 70% from
11the purse account as follows: 20% to the breeders of the horses
12in each such race who are official first, second, third and
13fourth finishers and 1 1/2% to the organization representing
14thoroughbred breeders and owners whose representatives serve
15on the Illinois Thoroughbred Breeders Fund Advisory Board for
16verifying the amounts of breeders' awards earned, ensuring
17their proper distribution in accordance with this Act, and
18servicing and promoting the Illinois thoroughbred horse racing
19industry. The organization representing thoroughbred breeders
20and owners shall cause all expenditures of moneys received
21under this subsection (j) to be audited at least annually by a
22registered public accountant. The organization shall file
23copies of each annual audit with the Racing Board, the Clerk of
24the House of Representatives and the Secretary of the Senate,
25and shall make copies of each annual audit available to the
26public upon request and upon payment of the reasonable cost of

 

 

10100SB0690ham003- 559 -LRB101 04451 SMS 61572 a

1photocopying the requested number of copies. The copies of the
2audit to the General Assembly shall be filed with the Clerk of
3the House of Representatives and the Secretary of the Senate in
4electronic form only, in the manner that the Clerk and the
5Secretary shall direct. A sum equal to 12 1/2% of the first
6prize money won in each race limited to Illinois foaled horses
7or Illinois conceived and foaled horses, or both, shall be paid
8in the following manner by the organization licensee conducting
9the horse race meeting, from the organization licensee's share
10of the money wagered: 11 1/2% to the breeders of the horses in
11each such race which are the official first, second, third and
12fourth finishers and 1% to the organization representing
13thoroughbred breeders and owners whose representative serves
14on the Illinois Thoroughbred Breeders Fund Advisory Board for
15verifying the amounts of breeders' awards earned, assuring
16their proper distribution in accordance with this Act, and
17servicing and promoting the Illinois thoroughbred horse racing
18industry. The organization representing thoroughbred breeders
19and owners shall cause all expenditures of monies received
20under this subsection (j) to be audited at least annually by a
21registered public accountant. The organization shall file
22copies of each annual audit with the Racing Board, the Clerk of
23the House of Representatives and the Secretary of the Senate,
24and shall make copies of each annual audit available to the
25public upon request and upon payment of the reasonable cost of
26photocopying the requested number of copies.

 

 

10100SB0690ham003- 560 -LRB101 04451 SMS 61572 a

1    The amounts 11 1/2% paid to the breeders in accordance with
2this subsection shall be distributed as follows:
3        (1) 60% of such sum shall be paid to the breeder of the
4    horse which finishes in the official first position;
5        (2) 20% of such sum shall be paid to the breeder of the
6    horse which finishes in the official second position;
7        (3) 15% of such sum shall be paid to the breeder of the
8    horse which finishes in the official third position; and
9        (4) 5% of such sum shall be paid to the breeder of the
10    horse which finishes in the official fourth position.
11    Such payments shall not reduce any award to the owners of a
12horse or reduce the taxes payable under this Act. Upon
13completion of its racing meet, each organization licensee shall
14deliver to the organization representing thoroughbred breeders
15and owners whose representative serves on the Illinois
16Thoroughbred Breeders Fund Advisory Board a listing of all the
17Illinois foaled and the Illinois conceived and foaled horses
18which won breeders' awards and the amount of such breeders'
19awards in accordance with the provisions of this Act. Such
20payments shall be delivered by the organization licensee within
2130 days of the end of each race meeting.
22    (k) The term "breeder", as used herein, means the owner of
23the mare at the time the foal is dropped. An "Illinois foaled
24horse" is a foal dropped by a mare which enters this State on
25or before December 1, in the year in which the horse is bred,
26provided the mare remains continuously in this State until its

 

 

10100SB0690ham003- 561 -LRB101 04451 SMS 61572 a

1foal is born. An "Illinois foaled horse" also means a foal born
2of a mare in the same year as the mare enters this State on or
3before March 1, and remains in this State at least 30 days
4after foaling, is bred back during the season of the foaling to
5an Illinois Registered Stallion (unless a veterinarian
6certifies that the mare should not be bred for health reasons),
7and is not bred to a stallion standing in any other state
8during the season of foaling. An "Illinois foaled horse" also
9means a foal born in Illinois of a mare purchased at public
10auction subsequent to the mare entering this State on or before
11March 1 prior to February 1 of the foaling year providing the
12mare is owned solely by one or more Illinois residents or an
13Illinois entity that is entirely owned by one or more Illinois
14residents.
15    (l) The Department of Agriculture shall, by rule, with the
16advice and assistance of the Illinois Thoroughbred Breeders
17Fund Advisory Board:
18        (1) Qualify stallions for Illinois breeding; such
19    stallions to stand for service within the State of Illinois
20    at the time of a foal's conception. Such stallion must not
21    stand for service at any place outside the State of
22    Illinois during the calendar year in which the foal is
23    conceived. The Department of Agriculture may assess and
24    collect an application fee of up to $500 fees for the
25    registration of Illinois-eligible stallions. All fees
26    collected are to be held in trust accounts for the purposes

 

 

10100SB0690ham003- 562 -LRB101 04451 SMS 61572 a

1    set forth in this Act and in accordance with Section 205-15
2    of the Department of Agriculture Law paid into the Illinois
3    Thoroughbred Breeders Fund.
4        (2) Provide for the registration of Illinois conceived
5    and foaled horses and Illinois foaled horses. No such horse
6    shall compete in the races limited to Illinois conceived
7    and foaled horses or Illinois foaled horses or both unless
8    registered with the Department of Agriculture. The
9    Department of Agriculture may prescribe such forms as are
10    necessary to determine the eligibility of such horses. The
11    Department of Agriculture may assess and collect
12    application fees for the registration of Illinois-eligible
13    foals. All fees collected are to be held in trust accounts
14    for the purposes set forth in this Act and in accordance
15    with Section 205-15 of the Department of Agriculture Law
16    paid into the Illinois Thoroughbred Breeders Fund. No
17    person shall knowingly prepare or cause preparation of an
18    application for registration of such foals containing
19    false information.
20    (m) The Department of Agriculture, with the advice and
21assistance of the Illinois Thoroughbred Breeders Fund Advisory
22Board, shall provide that certain races limited to Illinois
23conceived and foaled and Illinois foaled horses be stakes races
24and determine the total amount of stakes and awards to be paid
25to the owners of the winning horses in such races.
26    In determining the stakes races and the amount of awards

 

 

10100SB0690ham003- 563 -LRB101 04451 SMS 61572 a

1for such races, the Department of Agriculture shall consider
2factors, including but not limited to, the amount of money
3appropriated for the Illinois Thoroughbred Breeders Fund
4program, organization licensees' contributions, availability
5of stakes caliber horses as demonstrated by past performances,
6whether the race can be coordinated into the proposed racing
7dates within organization licensees' racing dates, opportunity
8for colts and fillies and various age groups to race, public
9wagering on such races, and the previous racing schedule.
10    (n) The Board and the organization organizational licensee
11shall notify the Department of the conditions and minimum
12purses for races limited to Illinois conceived and foaled and
13Illinois foaled horses conducted for each organization
14organizational licensee conducting a thoroughbred racing
15meeting. The Department of Agriculture with the advice and
16assistance of the Illinois Thoroughbred Breeders Fund Advisory
17Board may allocate monies for purse supplements for such races.
18In determining whether to allocate money and the amount, the
19Department of Agriculture shall consider factors, including
20but not limited to, the amount of money appropriated for the
21Illinois Thoroughbred Breeders Fund program, the number of
22races that may occur, and the organization organizational
23licensee's purse structure.
24    (o) (Blank).
25(Source: P.A. 98-692, eff. 7-1-14.)
 

 

 

10100SB0690ham003- 564 -LRB101 04451 SMS 61572 a

1    (230 ILCS 5/30.5)
2    Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
3    (a) The General Assembly declares that it is the policy of
4this State to encourage the breeding of racing quarter horses
5in this State and the ownership of such horses by residents of
6this State in order to provide for sufficient numbers of high
7quality racing quarter horses in this State and to establish
8and preserve the agricultural and commercial benefits of such
9breeding and racing industries to the State of Illinois. It is
10the intent of the General Assembly to further this policy by
11the provisions of this Act.
12    (b) There is hereby created a special fund in the State
13Treasury to be known as the Illinois Racing Quarter Horse
14Breeders Fund. Except as provided in subsection (g) of Section
1527 of this Act, 8.5% of all the moneys received by the State as
16pari-mutuel taxes on quarter horse racing shall be paid into
17the Illinois Racing Quarter Horse Breeders Fund. The Illinois
18Racing Quarter Horse Breeders Fund shall not be subject to
19administrative charges or chargebacks, including, but not
20limited to, those authorized under Section 8h of the State
21Finance Act.
22    (c) The Illinois Racing Quarter Horse Breeders Fund shall
23be administered by the Department of Agriculture with the
24advice and assistance of the Advisory Board created in
25subsection (d) of this Section.
26    (d) The Illinois Racing Quarter Horse Breeders Fund

 

 

10100SB0690ham003- 565 -LRB101 04451 SMS 61572 a

1Advisory Board shall consist of the Director of the Department
2of Agriculture, who shall serve as Chairman; a member of the
3Illinois Racing Board, designated by it; one representative of
4the organization licensees conducting pari-mutuel quarter
5horse racing meetings, recommended by them; 2 representatives
6of the Illinois Running Quarter Horse Association, recommended
7by it; and the Superintendent of Fairs and Promotions from the
8Department of Agriculture. Advisory Board members shall serve
9for 2 years commencing January 1 of each odd numbered year. If
10representatives have not been recommended by January 1 of each
11odd numbered year, the Director of the Department of
12Agriculture may make an appointment for the organization
13failing to so recommend a member of the Advisory Board.
14Advisory Board members shall receive no compensation for their
15services as members but may be reimbursed for all actual and
16necessary expenses and disbursements incurred in the execution
17of their official duties.
18    (e) Moneys in No moneys shall be expended from the Illinois
19Racing Quarter Horse Breeders Fund except as appropriated by
20the General Assembly. Moneys appropriated from the Illinois
21Racing Quarter Horse Breeders Fund shall be expended by the
22Department of Agriculture, with the advice and assistance of
23the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
24for the following purposes only:
25        (1) To provide stakes and awards to be paid to the
26    owners of the winning horses in certain races. This

 

 

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1    provision is limited to Illinois conceived and foaled
2    horses.
3        (2) To provide an award to the owner or owners of an
4    Illinois conceived and foaled horse that wins a race when
5    pari-mutuel wagering is conducted; providing the race is
6    not restricted to Illinois conceived and foaled horses.
7        (3) To provide purse money for an Illinois stallion
8    stakes program.
9        (4) To provide for purses to be distributed for the
10    running of races during the Illinois State Fair and the
11    DuQuoin State Fair exclusively for quarter horses
12    conceived and foaled in Illinois.
13        (5) To provide for purses to be distributed for the
14    running of races at Illinois county fairs exclusively for
15    quarter horses conceived and foaled in Illinois.
16        (6) To provide for purses to be distributed for running
17    races exclusively for quarter horses conceived and foaled
18    in Illinois at locations in Illinois determined by the
19    Department of Agriculture with advice and consent of the
20    Illinois Racing Quarter Horse Breeders Fund Advisory
21    Board.
22        (7) No less than 90% of all moneys appropriated from
23    the Illinois Racing Quarter Horse Breeders Fund shall be
24    expended for the purposes in items (1), (2), (3), (4), and
25    (5) of this subsection (e).
26        (8) To provide for research programs concerning the

 

 

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1    health, development, and care of racing quarter horses.
2        (9) To provide for dissemination of public information
3    designed to promote the breeding of racing quarter horses
4    in Illinois.
5        (10) To provide for expenses incurred in the
6    administration of the Illinois Racing Quarter Horse
7    Breeders Fund.
8    (f) The Department of Agriculture shall, by rule, with the
9advice and assistance of the Illinois Racing Quarter Horse
10Breeders Fund Advisory Board:
11        (1) Qualify stallions for Illinois breeding; such
12    stallions to stand for service within the State of
13    Illinois, at the time of a foal's conception. Such stallion
14    must not stand for service at any place outside the State
15    of Illinois during the calendar year in which the foal is
16    conceived. The Department of Agriculture may assess and
17    collect application fees for the registration of
18    Illinois-eligible stallions. All fees collected are to be
19    paid into the Illinois Racing Quarter Horse Breeders Fund.
20        (2) Provide for the registration of Illinois conceived
21    and foaled horses. No such horse shall compete in the races
22    limited to Illinois conceived and foaled horses unless it
23    is registered with the Department of Agriculture. The
24    Department of Agriculture may prescribe such forms as are
25    necessary to determine the eligibility of such horses. The
26    Department of Agriculture may assess and collect

 

 

10100SB0690ham003- 568 -LRB101 04451 SMS 61572 a

1    application fees for the registration of Illinois-eligible
2    foals. All fees collected are to be paid into the Illinois
3    Racing Quarter Horse Breeders Fund. No person shall
4    knowingly prepare or cause preparation of an application
5    for registration of such foals that contains false
6    information.
7    (g) The Department of Agriculture, with the advice and
8assistance of the Illinois Racing Quarter Horse Breeders Fund
9Advisory Board, shall provide that certain races limited to
10Illinois conceived and foaled be stakes races and determine the
11total amount of stakes and awards to be paid to the owners of
12the winning horses in such races.
13(Source: P.A. 98-463, eff. 8-16-13.)
 
14    (230 ILCS 5/31)  (from Ch. 8, par. 37-31)
15    Sec. 31. (a) The General Assembly declares that it is the
16policy of this State to encourage the breeding of standardbred
17horses in this State and the ownership of such horses by
18residents of this State in order to provide for: sufficient
19numbers of high quality standardbred horses to participate in
20harness racing meetings in this State, and to establish and
21preserve the agricultural and commercial benefits of such
22breeding and racing industries to the State of Illinois. It is
23the intent of the General Assembly to further this policy by
24the provisions of this Section of this Act.
25    (b) Each organization licensee conducting a harness racing

 

 

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1meeting pursuant to this Act shall provide for at least two
2races each race program limited to Illinois conceived and
3foaled horses. A minimum of 6 races shall be conducted each
4week limited to Illinois conceived and foaled horses. No horses
5shall be permitted to start in such races unless duly
6registered under the rules of the Department of Agriculture.
7    (b-5) Organization licensees, not including the Illinois
8State Fair or the DuQuoin State Fair, shall provide stake races
9and early closer races for Illinois conceived and foaled horses
10so that purses distributed for such races shall be no less than
1117% of total purses distributed for harness racing in that
12calendar year in addition to any stakes payments and starting
13fees contributed by horse owners.
14    (b-10) Each organization licensee conducting a harness
15racing meeting pursuant to this Act shall provide an owner
16award to be paid from the purse account equal to 12% of the
17amount earned by Illinois conceived and foaled horses finishing
18in the first 3 positions in races that are not restricted to
19Illinois conceived and foaled horses. The owner awards shall
20not be paid on races below the $10,000 claiming class.
21    (c) Conditions of races under subsection (b) shall be
22commensurate with past performance, quality and class of
23Illinois conceived and foaled horses available. If, however,
24sufficient competition cannot be had among horses of that class
25on any day, the races may, with consent of the Board, be
26eliminated for that day and substitute races provided.

 

 

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1    (d) There is hereby created a special fund of the State
2Treasury to be known as the Illinois Standardbred Breeders
3Fund. Beginning on the effective date of this amendatory Act of
4the 101st General Assembly, the Illinois Standardbred Breeders
5Fund shall become a non-appropriated trust fund held separate
6and apart from State moneys. Expenditures from this Fund shall
7no longer be subject to appropriation.
8    During the calendar year 1981, and each year thereafter,
9except as provided in subsection (g) of Section 27 of this Act,
10eight and one-half per cent of all the monies received by the
11State as privilege taxes on harness racing meetings shall be
12paid into the Illinois Standardbred Breeders Fund.
13    (e) Notwithstanding any provision of law to the contrary,
14amounts deposited into the Illinois Standardbred Breeders Fund
15from revenues generated by gaming pursuant to an organization
16gaming license issued under the Illinois Gambling Act after the
17effective date of this amendatory Act of the 101st General
18Assembly shall be in addition to tax and fee amounts paid under
19this Section for calendar year 2019 and thereafter. The
20Illinois Standardbred Breeders Fund shall be administered by
21the Department of Agriculture with the assistance and advice of
22the Advisory Board created in subsection (f) of this Section.
23    (f) The Illinois Standardbred Breeders Fund Advisory Board
24is hereby created. The Advisory Board shall consist of the
25Director of the Department of Agriculture, who shall serve as
26Chairman; the Superintendent of the Illinois State Fair; a

 

 

10100SB0690ham003- 571 -LRB101 04451 SMS 61572 a

1member of the Illinois Racing Board, designated by it; a
2representative of the largest association of Illinois
3standardbred owners and breeders, recommended by it; a
4representative of a statewide association representing
5agricultural fairs in Illinois, recommended by it, such
6representative to be from a fair at which Illinois conceived
7and foaled racing is conducted; a representative of the
8organization licensees conducting harness racing meetings,
9recommended by them; a representative of the Breeder's
10Committee of the association representing the largest number of
11standardbred owners, breeders, trainers, caretakers, and
12drivers, recommended by it; and a representative of the
13association representing the largest number of standardbred
14owners, breeders, trainers, caretakers, and drivers,
15recommended by it. Advisory Board members shall serve for 2
16years commencing January 1 of each odd numbered year. If
17representatives of the largest association of Illinois
18standardbred owners and breeders, a statewide association of
19agricultural fairs in Illinois, the association representing
20the largest number of standardbred owners, breeders, trainers,
21caretakers, and drivers, a member of the Breeder's Committee of
22the association representing the largest number of
23standardbred owners, breeders, trainers, caretakers, and
24drivers, and the organization licensees conducting harness
25racing meetings have not been recommended by January 1 of each
26odd numbered year, the Director of the Department of

 

 

10100SB0690ham003- 572 -LRB101 04451 SMS 61572 a

1Agriculture shall make an appointment for the organization
2failing to so recommend a member of the Advisory Board.
3Advisory Board members shall receive no compensation for their
4services as members but shall be reimbursed for all actual and
5necessary expenses and disbursements incurred in the execution
6of their official duties.
7    (g) No monies shall be expended from the Illinois
8Standardbred Breeders Fund except as appropriated by the
9General Assembly. Monies expended appropriated from the
10Illinois Standardbred Breeders Fund shall be expended by the
11Department of Agriculture, with the assistance and advice of
12the Illinois Standardbred Breeders Fund Advisory Board for the
13following purposes only:
14        1. To provide purses for races limited to Illinois
15    conceived and foaled horses at the State Fair and the
16    DuQuoin State Fair.
17        2. To provide purses for races limited to Illinois
18    conceived and foaled horses at county fairs.
19        3. To provide purse supplements for races limited to
20    Illinois conceived and foaled horses conducted by
21    associations conducting harness racing meetings.
22        4. No less than 75% of all monies in the Illinois
23    Standardbred Breeders Fund shall be expended for purses in
24    1, 2 and 3 as shown above.
25        5. In the discretion of the Department of Agriculture
26    to provide awards to harness breeders of Illinois conceived

 

 

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1    and foaled horses which win races conducted by organization
2    licensees conducting harness racing meetings. A breeder is
3    the owner of a mare at the time of conception. No more than
4    10% of all monies appropriated from the Illinois
5    Standardbred Breeders Fund shall be expended for such
6    harness breeders awards. No more than 25% of the amount
7    expended for harness breeders awards shall be expended for
8    expenses incurred in the administration of such harness
9    breeders awards.
10        6. To pay for the improvement of racing facilities
11    located at the State Fair and County fairs.
12        7. To pay the expenses incurred in the administration
13    of the Illinois Standardbred Breeders Fund.
14        8. To promote the sport of harness racing, including
15    grants up to a maximum of $7,500 per fair per year for
16    conducting pari-mutuel wagering during the advertised
17    dates of a county fair.
18        9. To pay up to $50,000 annually for the Department of
19    Agriculture to conduct drug testing at county fairs racing
20    standardbred horses.
21    (h) The Illinois Standardbred Breeders Fund is not subject
22to administrative charges or chargebacks, including, but not
23limited to, those authorized under Section 8h of the State
24Finance Act. Whenever the Governor finds that the amount in the
25Illinois Standardbred Breeders Fund is more than the total of
26the outstanding appropriations from such fund, the Governor

 

 

10100SB0690ham003- 574 -LRB101 04451 SMS 61572 a

1shall notify the State Comptroller and the State Treasurer of
2such fact. The Comptroller and the State Treasurer, upon
3receipt of such notification, shall transfer such excess amount
4from the Illinois Standardbred Breeders Fund to the General
5Revenue Fund.
6    (i) A sum equal to 13% 12 1/2% of the first prize money of
7the gross every purse won by an Illinois conceived and foaled
8horse shall be paid 50% by the organization licensee conducting
9the horse race meeting to the breeder of such winning horse
10from the organization licensee's account and 50% from the purse
11account of the licensee share of the money wagered. Such
12payment shall not reduce any award to the owner of the horse or
13reduce the taxes payable under this Act. Such payment shall be
14delivered by the organization licensee at the end of each
15quarter race meeting.
16    (j) The Department of Agriculture shall, by rule, with the
17assistance and advice of the Illinois Standardbred Breeders
18Fund Advisory Board:
19        1. Qualify stallions for Illinois Standardbred
20    Breeders Fund breeding; such stallion shall be owned by a
21    resident of the State of Illinois or by an Illinois
22    corporation all of whose shareholders, directors, officers
23    and incorporators are residents of the State of Illinois.
24    Such stallion shall stand for service at and within the
25    State of Illinois at the time of a foal's conception, and
26    such stallion must not stand for service at any place, nor

 

 

10100SB0690ham003- 575 -LRB101 04451 SMS 61572 a

1    may semen from such stallion be transported, outside the
2    State of Illinois during that calendar year in which the
3    foal is conceived and that the owner of the stallion was
4    for the 12 months prior, a resident of Illinois. However,
5    from January 1, 2018 until January 1, 2022, semen from an
6    Illinois stallion may be transported outside the State of
7    Illinois. The articles of agreement of any partnership,
8    joint venture, limited partnership, syndicate, association
9    or corporation and any bylaws and stock certificates must
10    contain a restriction that provides that the ownership or
11    transfer of interest by any one of the persons a party to
12    the agreement can only be made to a person who qualifies as
13    an Illinois resident.
14        2. Provide for the registration of Illinois conceived
15    and foaled horses and no such horse shall compete in the
16    races limited to Illinois conceived and foaled horses
17    unless registered with the Department of Agriculture. The
18    Department of Agriculture may prescribe such forms as may
19    be necessary to determine the eligibility of such horses.
20    No person shall knowingly prepare or cause preparation of
21    an application for registration of such foals containing
22    false information. A mare (dam) must be in the State at
23    least 30 days prior to foaling or remain in the State at
24    least 30 days at the time of foaling. However, the
25    requirement that a mare (dam) must be in the State at least
26    30 days before foaling or remain in the State at least 30

 

 

10100SB0690ham003- 576 -LRB101 04451 SMS 61572 a

1    days at the time of foaling shall not be in effect from
2    January 1, 2018 until January 1, 2022. Beginning with the
3    1996 breeding season and for foals of 1997 and thereafter,
4    a foal conceived by transported semen may be eligible for
5    Illinois conceived and foaled registration provided all
6    breeding and foaling requirements are met. The stallion
7    must be qualified for Illinois Standardbred Breeders Fund
8    breeding at the time of conception and the mare must be
9    inseminated within the State of Illinois. The foal must be
10    dropped in Illinois and properly registered with the
11    Department of Agriculture in accordance with this Act.
12    However, from January 1, 2018 until January 1, 2022, the
13    requirement for a mare to be inseminated within the State
14    of Illinois and the requirement for a foal to be dropped in
15    Illinois are inapplicable.
16        3. Provide that at least a 5 day racing program shall
17    be conducted at the State Fair each year, which program
18    shall include at least the following races limited to
19    Illinois conceived and foaled horses: (a) a two year old
20    Trot and Pace, and Filly Division of each; (b) a three year
21    old Trot and Pace, and Filly Division of each; (c) an aged
22    Trot and Pace, and Mare Division of each.
23        4. Provide for the payment of nominating, sustaining
24    and starting fees for races promoting the sport of harness
25    racing and for the races to be conducted at the State Fair
26    as provided in subsection (j) 3 of this Section provided

 

 

10100SB0690ham003- 577 -LRB101 04451 SMS 61572 a

1    that the nominating, sustaining and starting payment
2    required from an entrant shall not exceed 2% of the purse
3    of such race. All nominating, sustaining and starting
4    payments shall be held for the benefit of entrants and
5    shall be paid out as part of the respective purses for such
6    races. Nominating, sustaining and starting fees shall be
7    held in trust accounts for the purposes as set forth in
8    this Act and in accordance with Section 205-15 of the
9    Department of Agriculture Law (20 ILCS 205/205-15).
10        5. Provide for the registration with the Department of
11    Agriculture of Colt Associations or county fairs desiring
12    to sponsor races at county fairs.
13        6. Provide for the promotion of producing standardbred
14    racehorses by providing a bonus award program for owners of
15    2-year-old horses that win multiple major stakes races that
16    are limited to Illinois conceived and foaled horses.
17    (k) The Department of Agriculture, with the advice and
18assistance of the Illinois Standardbred Breeders Fund Advisory
19Board, may allocate monies for purse supplements for such
20races. In determining whether to allocate money and the amount,
21the Department of Agriculture shall consider factors,
22including but not limited to, the amount of money appropriated
23for the Illinois Standardbred Breeders Fund program, the number
24of races that may occur, and an organization organizational
25licensee's purse structure. The organization organizational
26licensee shall notify the Department of Agriculture of the

 

 

10100SB0690ham003- 578 -LRB101 04451 SMS 61572 a

1conditions and minimum purses for races limited to Illinois
2conceived and foaled horses to be conducted by each
3organization organizational licensee conducting a harness
4racing meeting for which purse supplements have been
5negotiated.
6    (l) All races held at county fairs and the State Fair which
7receive funds from the Illinois Standardbred Breeders Fund
8shall be conducted in accordance with the rules of the United
9States Trotting Association unless otherwise modified by the
10Department of Agriculture.
11    (m) At all standardbred race meetings held or conducted
12under authority of a license granted by the Board, and at all
13standardbred races held at county fairs which are approved by
14the Department of Agriculture or at the Illinois or DuQuoin
15State Fairs, no one shall jog, train, warm up or drive a
16standardbred horse unless he or she is wearing a protective
17safety helmet, with the chin strap fastened and in place, which
18meets the standards and requirements as set forth in the 1984
19Standard for Protective Headgear for Use in Harness Racing and
20Other Equestrian Sports published by the Snell Memorial
21Foundation, or any standards and requirements for headgear the
22Illinois Racing Board may approve. Any other standards and
23requirements so approved by the Board shall equal or exceed
24those published by the Snell Memorial Foundation. Any
25equestrian helmet bearing the Snell label shall be deemed to
26have met those standards and requirements.

 

 

10100SB0690ham003- 579 -LRB101 04451 SMS 61572 a

1(Source: P.A. 99-756, eff. 8-12-16; 100-777, eff. 8-10-18.)
 
2    (230 ILCS 5/31.1)  (from Ch. 8, par. 37-31.1)
3    Sec. 31.1. (a) Unless subsection (a-5) applies,
4organization Organization licensees collectively shall
5contribute annually to charity the sum of $750,000 to
6non-profit organizations that provide medical and family,
7counseling, and similar services to persons who reside or work
8on the backstretch of Illinois racetracks. Unless subsection
9(a-5) applies, these These contributions shall be collected as
10follows: (i) no later than July 1st of each year the Board
11shall assess each organization licensee, except those tracks
12located in Madison County, which are not within 100 miles of
13each other which tracks shall pay $30,000 annually apiece into
14the Board charity fund, that amount which equals $690,000
15multiplied by the amount of pari-mutuel wagering handled by the
16organization licensee in the year preceding assessment and
17divided by the total pari-mutuel wagering handled by all
18Illinois organization licensees, except those tracks located
19in Madison and Rock Island counties which are not within 100
20miles of each other, in the year preceding assessment; (ii)
21notice of the assessed contribution shall be mailed to each
22organization licensee; (iii) within thirty days of its receipt
23of such notice, each organization licensee shall remit the
24assessed contribution to the Board. Unless subsection (a-5)
25applies, if an organization licensee commences operation of

 

 

10100SB0690ham003- 580 -LRB101 04451 SMS 61572 a

1gaming at its facility pursuant to an organization gaming
2license under the Illinois Gambling Act, then the organization
3licensee shall contribute an additional $83,000 per year
4beginning in the year subsequent to the first year in which the
5organization licensee begins receiving funds from gaming
6pursuant to an organization gaming license. If an organization
7licensee wilfully fails to so remit the contribution, the Board
8may revoke its license to conduct horse racing.
9    (a-5) If (1) an organization licensee that did not operate
10live racing in 2017 is awarded racing dates in 2018 or in any
11subsequent year and (2) all organization licensees are
12operating gaming pursuant to an organization gaming license
13under the Illinois Gambling Act, then subsection (a) does not
14apply and organization licensees collectively shall contribute
15annually to charity the sum of $1,000,000 to non-profit
16organizations that provide medical and family, counseling, and
17similar services to persons who reside or work on the
18backstretch of Illinois racetracks. These contributions shall
19be collected as follows: (i) no later than July 1st of each
20year the Board shall assess each organization licensee an
21amount based on the proportionate amount of live racing days in
22the calendar year for which the Board has awarded to the
23organization licensee out of the total aggregate number of live
24racing days awarded; (ii) notice of the assessed contribution
25shall be mailed to each organization licensee; (iii) within 30
26days after its receipt of such notice, each organization

 

 

10100SB0690ham003- 581 -LRB101 04451 SMS 61572 a

1licensee shall remit the assessed contribution to the Board. If
2an organization licensee willfully fails to so remit the
3contribution, the Board may revoke its license to conduct horse
4racing.
5    (b) No later than October 1st of each year, any qualified
6charitable organization seeking an allotment of contributed
7funds shall submit to the Board an application for those funds,
8using the Board's approved form. No later than December 31st of
9each year, the Board shall distribute all such amounts
10collected that year to such charitable organization
11applicants.
12(Source: P.A. 87-110.)
 
13    (230 ILCS 5/32.1)
14    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
15real estate equalization.
16    (a) In order to encourage new investment in Illinois
17racetrack facilities and mitigate differing real estate tax
18burdens among all racetracks, the licensees affiliated or
19associated with each racetrack that has been awarded live
20racing dates in the current year shall receive an immediate
21pari-mutuel tax credit in an amount equal to the greater of (i)
2250% of the amount of the real estate taxes paid in the prior
23year attributable to that racetrack, or (ii) the amount by
24which the real estate taxes paid in the prior year attributable
25to that racetrack exceeds 60% of the average real estate taxes

 

 

10100SB0690ham003- 582 -LRB101 04451 SMS 61572 a

1paid in the prior year for all racetracks awarded live horse
2racing meets in the current year.
3    Each year, regardless of whether the organization licensee
4conducted live racing in the year of certification, the Board
5shall certify in writing, prior to December 31, the real estate
6taxes paid in that year for each racetrack and the amount of
7the pari-mutuel tax credit that each organization licensee,
8inter-track wagering licensee, and inter-track wagering
9location licensee that derives its license from such racetrack
10is entitled in the succeeding calendar year. The real estate
11taxes considered under this Section for any racetrack shall be
12those taxes on the real estate parcels and related facilities
13used to conduct a horse race meeting and inter-track wagering
14at such racetrack under this Act. In no event shall the amount
15of the tax credit under this Section exceed the amount of
16pari-mutuel taxes otherwise calculated under this Act. The
17amount of the tax credit under this Section shall be retained
18by each licensee and shall not be subject to any reallocation
19or further distribution under this Act. The Board may
20promulgate emergency rules to implement this Section.
21    (b) If the organization licensee is operating gaming
22pursuant to an organization gaming license issued under the
23Illinois Gambling Act, except the organization licensee
24described in Section 19.5, then, for the 5-year period
25beginning on the January 1 of the calendar year immediately
26following the calendar year during which an organization

 

 

10100SB0690ham003- 583 -LRB101 04451 SMS 61572 a

1licensee begins conducting gaming operations pursuant to an
2organization gaming license issued under the Illinois Gambling
3Act, the organization licensee shall make capital
4expenditures, in an amount equal to no less than 50% of the tax
5credit under this Section, to the improvement and maintenance
6of the backstretch, including, but not limited to, backstretch
7barns, dormitories, and services for backstretch workers.
8Those capital expenditures must be in addition to, and not in
9lieu of, the capital expenditures made for backstretch
10improvements in calendar year 2015, as reported to the Board in
11the organization licensee's application for racing dates and as
12certified by the Board. The organization licensee is required
13to annually submit the list and amounts of these capital
14expenditures to the Board by January 30th of the year following
15the expenditure.
16    (c) If the organization licensee is conducting gaming in
17accordance with paragraph (b), then, after the 5-year period
18beginning on January 1 of the calendar year immediately
19following the calendar year during which an organization
20licensee begins conducting gaming operations pursuant to an
21organization gaming license issued under the Illinois Gambling
22Act, the organization license is ineligible to receive a tax
23credit under this Section.
24(Source: P.A. 100-201, eff. 8-18-17.)
 
25    (230 ILCS 5/34.3 new)

 

 

10100SB0690ham003- 584 -LRB101 04451 SMS 61572 a

1    Sec. 34.3. Drug testing. The Illinois Racing Board and the
2Department of Agriculture shall jointly establish a program for
3the purpose of conducting drug testing of horses at county
4fairs and shall adopt any rules necessary for enforcement of
5the program. The rules shall include appropriate penalties for
6violations.
 
7    (230 ILCS 5/36)   (from Ch. 8, par. 37-36)
8    Sec. 36. (a) Whoever administers or conspires to administer
9to any horse a hypnotic, narcotic, stimulant, depressant or any
10chemical substance which may affect the speed of a horse at any
11time in any race where the purse or any part of the purse is
12made of money authorized by any Section of this Act, except
13those chemical substances permitted by ruling of the Board,
14internally, externally or by hypodermic method in a race or
15prior thereto, or whoever knowingly enters a horse in any race
16within a period of 24 hours after any hypnotic, narcotic,
17stimulant, depressant or any other chemical substance which may
18affect the speed of a horse at any time, except those chemical
19substances permitted by ruling of the Board, has been
20administered to such horse either internally or externally or
21by hypodermic method for the purpose of increasing or retarding
22the speed of such horse shall be guilty of a Class 4 felony.
23The Board shall suspend or revoke such violator's license.
24    (b) The term "hypnotic" as used in this Section includes
25all barbituric acid preparations and derivatives.

 

 

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1    (c) The term "narcotic" as used in this Section includes
2opium and all its alkaloids, salts, preparations and
3derivatives, cocaine and all its salts, preparations and
4derivatives and substitutes.
5    (d) The provisions of this Section and the treatment
6authorized in this Section apply to horses entered in and
7competing in race meetings as defined in Section 3.07 of this
8Act and to horses entered in and competing at any county fair.
9(Source: P.A. 79-1185.)
 
10    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)
11    Sec. 40. (a) The imposition of any fine or penalty provided
12in this Act shall not preclude the Board in its rules and
13regulations from imposing a fine or penalty for any other
14action which, in the Board's discretion, is a detriment or
15impediment to horse racing.
16    (b) The Director of Agriculture or his or her authorized
17representative shall impose the following monetary penalties
18and hold administrative hearings as required for failure to
19submit the following applications, lists, or reports within the
20time period, date or manner required by statute or rule or for
21removing a foal from Illinois prior to inspection:
22        (1) late filing of a renewal application for offering
23    or standing stallion for service:
24            (A) if an application is submitted no more than 30
25        days late, $50;

 

 

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1            (B) if an application is submitted no more than 45
2        days late, $150; or
3            (C) if an application is submitted more than 45
4        days late, if filing of the application is allowed
5        under an administrative hearing, $250;
6        (2) late filing of list or report of mares bred:
7            (A) if a list or report is submitted no more than
8        30 days late, $50;
9            (B) if a list or report is submitted no more than
10        60 days late, $150; or
11            (C) if a list or report is submitted more than 60
12        days late, if filing of the list or report is allowed
13        under an administrative hearing, $250;
14        (3) filing an Illinois foaled thoroughbred mare status
15    report after the statutory deadline as provided in
16    subsection (k) of Section 30 of this Act December 31:
17            (A) if a report is submitted no more than 30 days
18        late, $50;
19            (B) if a report is submitted no more than 90 days
20        late, $150;
21            (C) if a report is submitted no more than 150 days
22        late, $250; or
23            (D) if a report is submitted more than 150 days
24        late, if filing of the report is allowed under an
25        administrative hearing, $500;
26        (4) late filing of application for foal eligibility

 

 

10100SB0690ham003- 587 -LRB101 04451 SMS 61572 a

1    certificate:
2            (A) if an application is submitted no more than 30
3        days late, $50;
4            (B) if an application is submitted no more than 90
5        days late, $150;
6            (C) if an application is submitted no more than 150
7        days late, $250; or
8            (D) if an application is submitted more than 150
9        days late, if filing of the application is allowed
10        under an administrative hearing, $500;
11        (5) failure to report the intent to remove a foal from
12    Illinois prior to inspection, identification and
13    certification by a Department of Agriculture investigator,
14    $50; and
15        (6) if a list or report of mares bred is incomplete,
16    $50 per mare not included on the list or report.
17    Any person upon whom monetary penalties are imposed under
18this Section 3 times within a 5-year period shall have any
19further monetary penalties imposed at double the amounts set
20forth above. All monies assessed and collected for violations
21relating to thoroughbreds shall be paid into the Illinois
22Thoroughbred Breeders Fund. All monies assessed and collected
23for violations relating to standardbreds shall be paid into the
24Illinois Standardbred Breeders Fund.
25(Source: P.A. 99-933, eff. 1-27-17; 100-201, eff. 8-18-17.)
 

 

 

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1    (230 ILCS 5/54.75)
2    Sec. 54.75. Horse Racing Equity Trust Fund.
3    (a) There is created a Fund to be known as the Horse Racing
4Equity Trust Fund, which is a non-appropriated trust fund held
5separate and apart from State moneys. The Fund shall consist of
6moneys paid into it by owners licensees under the Illinois
7Riverboat Gambling Act for the purposes described in this
8Section. The Fund shall be administered by the Board. Moneys in
9the Fund shall be distributed as directed and certified by the
10Board in accordance with the provisions of subsection (b).
11    (b) The moneys deposited into the Fund, plus any accrued
12interest on those moneys, shall be distributed within 10 days
13after those moneys are deposited into the Fund as follows:
14        (1) Sixty percent of all moneys distributed under this
15    subsection shall be distributed to organization licensees
16    to be distributed at their race meetings as purses.
17    Fifty-seven percent of the amount distributed under this
18    paragraph (1) shall be distributed for thoroughbred race
19    meetings and 43% shall be distributed for standardbred race
20    meetings. Within each breed, moneys shall be allocated to
21    each organization licensee's purse fund in accordance with
22    the ratio between the purses generated for that breed by
23    that licensee during the prior calendar year and the total
24    purses generated throughout the State for that breed during
25    the prior calendar year by licensees in the current
26    calendar year.

 

 

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1        (2) The remaining 40% of the moneys distributed under
2    this subsection (b) shall be distributed as follows:
3            (A) 11% shall be distributed to any person (or its
4        successors or assigns) who had operating control of a
5        racetrack that conducted live racing in 2002 at a
6        racetrack in a county with at least 230,000 inhabitants
7        that borders the Mississippi River and is a licensee in
8        the current year; and
9            (B) the remaining 89% shall be distributed pro rata
10        according to the aggregate proportion of total handle
11        from wagering on live races conducted in Illinois
12        (irrespective of where the wagers are placed) for
13        calendar years 2004 and 2005 to any person (or its
14        successors or assigns) who (i) had majority operating
15        control of a racing facility at which live racing was
16        conducted in calendar year 2002, (ii) is a licensee in
17        the current year, and (iii) is not eligible to receive
18        moneys under subparagraph (A) of this paragraph (2).
19            The moneys received by an organization licensee
20        under this paragraph (2) shall be used by each
21        organization licensee to improve, maintain, market,
22        and otherwise operate its racing facilities to conduct
23        live racing, which shall include backstretch services
24        and capital improvements related to live racing and the
25        backstretch. Any organization licensees sharing common
26        ownership may pool the moneys received and spent at all

 

 

10100SB0690ham003- 590 -LRB101 04451 SMS 61572 a

1        racing facilities commonly owned in order to meet these
2        requirements.
3        If any person identified in this paragraph (2) becomes
4    ineligible to receive moneys from the Fund, such amount
5    shall be redistributed among the remaining persons in
6    proportion to their percentages otherwise calculated.
7    (c) The Board shall monitor organization licensees to
8ensure that moneys paid to organization licensees under this
9Section are distributed by the organization licensees as
10provided in subsection (b).
11(Source: P.A. 95-1008, eff. 12-15-08.)
 
12    (230 ILCS 5/56 new)
13    Sec. 56. Gaming pursuant to an organization gaming license.
14    (a) A person, firm, corporation, partnership, or limited
15liability company having operating control of a racetrack may
16apply to the Gaming Board for an organization gaming license.
17An organization gaming license shall authorize its holder to
18conduct gaming on the grounds of the racetrack of which the
19organization gaming licensee has operating control. Only one
20organization gaming license may be awarded for any racetrack. A
21holder of an organization gaming license shall be subject to
22the Illinois Gambling Act and rules of the Illinois Gaming
23Board concerning gaming pursuant to an organization gaming
24license issued under the Illinois Gambling Act. If the person,
25firm, corporation, or limited liability company having

 

 

10100SB0690ham003- 591 -LRB101 04451 SMS 61572 a

1operating control of a racetrack is found by the Illinois
2Gaming Board to be unsuitable for an organization gaming
3license under the Illinois Gambling Act and rules of the Gaming
4Board, that person, firm, corporation, or limited liability
5company shall not be granted an organization gaming license.
6Each license shall specify the number of gaming positions that
7its holder may operate.
8    An organization gaming licensee may not permit patrons
9under 21 years of age to be present in its organization gaming
10facility, but the licensee may accept wagers on live racing and
11inter-track wagers at its organization gaming facility.
12    (b) For purposes of this subsection, "adjusted gross
13receipts" means an organization gaming licensee's gross
14receipts less winnings paid to wagerers and shall also include
15any amounts that would otherwise be deducted pursuant to
16subsection (a-9) of Section 13 of the Illinois Gambling Act.
17The adjusted gross receipts by an organization gaming licensee
18from gaming pursuant to an organization gaming license issued
19under the Illinois Gambling Act remaining after the payment of
20taxes under Section 13 of the Illinois Gambling Act shall be
21distributed as follows:
22        (1) Amounts shall be paid to the purse account at the
23    track at which the organization licensee is conducting
24    racing equal to the following:
25            12.75% of annual adjusted gross receipts up to and
26        including $93,000,000;

 

 

10100SB0690ham003- 592 -LRB101 04451 SMS 61572 a

1            20% of annual adjusted gross receipts in excess of
2        $93,000,000 but not exceeding $100,000,000;
3            26.5% of annual adjusted gross receipts in excess
4        of $100,000,000 but not exceeding $125,000,000; and
5            20.5% of annual adjusted gross receipts in excess
6        of $125,000,000.
7        If 2 different breeds race at the same racetrack in the
8    same calendar year, the purse moneys allocated under this
9    subsection (b) shall be divided pro rata based on live
10    racing days awarded by the Board to that race track for
11    each breed. However, the ratio may not exceed 60% for
12    either breed, except if one breed is awarded fewer than 20
13    live racing days, in which case the purse moneys allocated
14    shall be divided pro rata based on live racing days.
15        (2) The remainder shall be retained by the organization
16    gaming licensee.
17    (c) Annually, from the purse account of an organization
18licensee racing thoroughbred horses in this State, except for
19in Madison County, an amount equal to 12% of the gaming
20receipts from gaming pursuant to an organization gaming license
21placed into the purse accounts shall be paid to the Illinois
22Thoroughbred Breeders Fund and shall be used for owner awards;
23a stallion program pursuant to paragraph (3) of subsection (g)
24of Section 30 of this Act; and Illinois conceived and foaled
25stakes races pursuant to paragraph (2) of subsection (g) of
26Section 30 of this Act, as specifically designated by the

 

 

10100SB0690ham003- 593 -LRB101 04451 SMS 61572 a

1horsemen association representing the largest number of owners
2and trainers who race at the organization licensee's race
3meetings.
4    Annually, from the purse account of an organization
5licensee racing thoroughbred horses in Madison County, an
6amount equal to 10% of the gaming receipts from gaming pursuant
7to an organization gaming license placed into the purse
8accounts shall be paid to the Illinois Thoroughbred Breeders
9Fund and shall be used for owner awards; a stallion program
10pursuant to paragraph (3) of subsection (g) of Section 30 of
11this Act; and Illinois conceived and foaled stakes races
12pursuant to paragraph (2) of subsection (g) of Section 30 of
13this Act, as specifically designated by the horsemen
14association representing the largest number of owners and
15trainers who race at the organization licensee's race meetings.
16    Annually, from the amounts generated for purses from all
17sources, including, but not limited to, amounts generated from
18wagering conducted by organization licensees, organization
19gaming licensees, inter-track wagering licensees, inter-track
20wagering locations licensees, and advance deposit wagering
21licensees, or an organization licensee to the purse account of
22an organization licensee conducting thoroughbred races at a
23track in Madison County, an amount equal to 10% of adjusted
24gross receipts as defined in subsection (b) of this Section
25shall be paid to the horsemen association representing the
26largest number of owners and trainers who race at the

 

 

10100SB0690ham003- 594 -LRB101 04451 SMS 61572 a

1organization licensee's race meets, to be used to for
2operational expenses and may be also used for after care
3programs for retired thoroughbred race horses, backstretch
4laundry and kitchen facilities, a health insurance or
5retirement program, the Future Farmers of America, and such
6other programs.
7    Annually, from the purse account of organization licensees
8conducting thoroughbred races at racetracks in Cook County,
9$100,000 shall be paid for division and equal distribution to
10the animal sciences department of each Illinois public
11university system engaged in equine research and education on
12or before the effective date of this amendatory Act of the
13101st General Assembly for equine research and education.
14    (d) Annually, from the purse account of an organization
15licensee racing standardbred horses, an amount equal to 15% of
16the gaming receipts from gaming pursuant to an organization
17gaming license placed into that purse account shall be paid to
18the Illinois Standardbred Breeders Fund. Moneys deposited into
19the Illinois Standardbred Breeders Fund shall be used for
20standardbred racing as authorized in paragraphs 1, 2, 3, 8, and
219 of subsection (g) of Section 31 of this Act and for bonus
22awards as authorized under paragraph 6 of subsection (j) of
23Section 31 of this Act.
 
24    Section 35-55. The Riverboat Gambling Act is amended by
25changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,

 

 

10100SB0690ham003- 595 -LRB101 04451 SMS 61572 a

111.1, 12, 13, 14, 15, 17, 17.1, 18, 18.1, 19, 20, and 24 and by
2adding Sections 5.3, 7.7, 7.8, 7.10, 7.11, 7.12, 7.13, 7.14,
3and 7.15 as follows:
 
4    (230 ILCS 10/1)  (from Ch. 120, par. 2401)
5    Sec. 1. Short title. This Act shall be known and may be
6cited as the Illinois Riverboat Gambling Act.
7(Source: P.A. 86-1029.)
 
8    (230 ILCS 10/2)  (from Ch. 120, par. 2402)
9    Sec. 2. Legislative Intent.
10    (a) This Act is intended to benefit the people of the State
11of Illinois by assisting economic development, and promoting
12Illinois tourism, and by increasing the amount of revenues
13available to the State to assist and support education, and to
14defray State expenses.
15    (b) While authorization of riverboat and casino gambling
16will enhance investment, beautification, development and
17tourism in Illinois, it is recognized that it will do so
18successfully only if public confidence and trust in the
19credibility and integrity of the gambling operations and the
20regulatory process is maintained. Therefore, regulatory
21provisions of this Act are designed to strictly regulate the
22facilities, persons, associations and practices related to
23gambling operations pursuant to the police powers of the State,
24including comprehensive law enforcement supervision.

 

 

10100SB0690ham003- 596 -LRB101 04451 SMS 61572 a

1    (c) The Illinois Gaming Board established under this Act
2should, as soon as possible, inform each applicant for an
3owners license of the Board's intent to grant or deny a
4license.
5(Source: P.A. 93-28, eff. 6-20-03.)
 
6    (230 ILCS 10/3)  (from Ch. 120, par. 2403)
7    Sec. 3. Riverboat Gambling Authorized.
8    (a) Riverboat and casino gambling operations and gaming
9operations pursuant to an organization gaming license and the
10system of wagering incorporated therein, as defined in this
11Act, are hereby authorized to the extent that they are carried
12out in accordance with the provisions of this Act.
13    (b) This Act does not apply to the pari-mutuel system of
14wagering used or intended to be used in connection with the
15horse-race meetings as authorized under the Illinois Horse
16Racing Act of 1975, lottery games authorized under the Illinois
17Lottery Law, bingo authorized under the Bingo License and Tax
18Act, charitable games authorized under the Charitable Games Act
19or pull tabs and jar games conducted under the Illinois Pull
20Tabs and Jar Games Act. This Act applies to gaming by an
21organization gaming licensee authorized under the Illinois
22Horse Racing Act of 1975 to the extent provided in that Act and
23in this Act.
24    (c) Riverboat gambling conducted pursuant to this Act may
25be authorized upon any water within the State of Illinois or

 

 

10100SB0690ham003- 597 -LRB101 04451 SMS 61572 a

1any water other than Lake Michigan which constitutes a boundary
2of the State of Illinois. Notwithstanding any provision in this
3subsection (c) to the contrary, a licensee that receives its
4license pursuant to subsection (e-5) of Section 7 may conduct
5riverboat gambling on Lake Michigan from a home dock located on
6Lake Michigan subject to any limitations contained in Section
77. Notwithstanding any provision in this subsection (c) to the
8contrary, a licensee may conduct gambling at its home dock
9facility as provided in Sections 7 and 11. A licensee may
10conduct riverboat gambling authorized under this Act
11regardless of whether it conducts excursion cruises. A licensee
12may permit the continuous ingress and egress of passengers for
13the purpose of gambling.
14    (d) Gambling that is conducted in accordance with this Act
15using slot machines and video games of chance and other
16electronic gambling games as defined in both this Act and the
17Illinois Horse Racing Act of 1975 is authorized.
18(Source: P.A. 91-40, eff. 6-25-99.)
 
19    (230 ILCS 10/4)  (from Ch. 120, par. 2404)
20    Sec. 4. Definitions. As used in this Act:
21    (a) "Board" means the Illinois Gaming Board.
22    (b) "Occupational license" means a license issued by the
23Board to a person or entity to perform an occupation which the
24Board has identified as requiring a license to engage in
25riverboat gambling, casino gambling, or gaming pursuant to an

 

 

10100SB0690ham003- 598 -LRB101 04451 SMS 61572 a

1organization gaming license issued under this Act in Illinois.
2    (c) "Gambling game" includes, but is not limited to,
3baccarat, twenty-one, poker, craps, slot machine, video game of
4chance, roulette wheel, klondike table, punchboard, faro
5layout, keno layout, numbers ticket, push card, jar ticket, or
6pull tab which is authorized by the Board as a wagering device
7under this Act.
8    (d) "Riverboat" means a self-propelled excursion boat, a
9permanently moored barge, or permanently moored barges that are
10permanently fixed together to operate as one vessel, on which
11lawful gambling is authorized and licensed as provided in this
12Act.
13    "Slot machine" means any mechanical, electrical, or other
14device, contrivance, or machine that is authorized by the Board
15as a wagering device under this Act which, upon insertion of a
16coin, currency, token, or similar object therein, or upon
17payment of any consideration whatsoever, is available to play
18or operate, the play or operation of which may deliver or
19entitle the person playing or operating the machine to receive
20cash, premiums, merchandise, tokens, or anything of value
21whatsoever, whether the payoff is made automatically from the
22machine or in any other manner whatsoever. A slot machine:
23        (1) may utilize spinning reels or video displays or
24    both;
25        (2) may or may not dispense coins, tickets, or tokens
26    to winning patrons;

 

 

10100SB0690ham003- 599 -LRB101 04451 SMS 61572 a

1        (3) may use an electronic credit system for receiving
2    wagers and making payouts; and
3        (4) may simulate a table game.
4    "Slot machine" does not include table games authorized by
5the Board as a wagering device under this Act.
6    (e) "Managers license" means a license issued by the Board
7to a person or entity to manage gambling operations conducted
8by the State pursuant to Section 7.3.
9    (f) "Dock" means the location where a riverboat moors for
10the purpose of embarking passengers for and disembarking
11passengers from the riverboat.
12    (g) "Gross receipts" means the total amount of money
13exchanged for the purchase of chips, tokens, or electronic
14cards by riverboat patrons.
15    (h) "Adjusted gross receipts" means the gross receipts less
16winnings paid to wagerers.
17    (i) "Cheat" means to alter the selection of criteria which
18determine the result of a gambling game or the amount or
19frequency of payment in a gambling game.
20    (j) (Blank).
21    (k) "Gambling operation" means the conduct of authorized
22gambling games authorized under this Act upon a riverboat or in
23a casino or authorized under this Act and the Illinois Horse
24Racing Act of 1975 at an organization gaming facility.
25    (l) "License bid" means the lump sum amount of money that
26an applicant bids and agrees to pay the State in return for an

 

 

10100SB0690ham003- 600 -LRB101 04451 SMS 61572 a

1owners license that is issued or re-issued on or after July 1,
22003.
3    "Table game" means a live gaming apparatus upon which
4gaming is conducted or that determines an outcome that is the
5object of a wager, including, but not limited to, baccarat,
6twenty-one, blackjack, poker, craps, roulette wheel, klondike
7table, punchboard, faro layout, keno layout, numbers ticket,
8push card, jar ticket, pull tab, or other similar games that
9are authorized by the Board as a wagering device under this
10Act. "Table game" does not include slot machines or video games
11of chance.
12    (m) The terms "minority person", "woman", and "person with
13a disability" shall have the same meaning as defined in Section
142 of the Business Enterprise for Minorities, Women, and Persons
15with Disabilities Act.
16    "Casino" means a facility at which lawful gambling is
17authorized as provided in this Act.
18    "Owners license" means a license to conduct riverboat or
19casino gambling operations, but does not include an
20organization gaming license.
21    "Licensed owner" means a person who holds an owners
22license.
23    "Organization gaming facility" means that portion of an
24organization licensee's racetrack facilities at which gaming
25authorized under Section 7.7 is conducted.
26    "Organization gaming license" means a license issued by the

 

 

10100SB0690ham003- 601 -LRB101 04451 SMS 61572 a

1Illinois Gaming Board under Section 7.7 of this Act authorizing
2gaming pursuant to that Section at an organization gaming
3facility.
4    "Organization gaming licensee" means an entity that holds
5an organization gaming license.
6    "Organization licensee" means an entity authorized by the
7Illinois Racing Board to conduct pari-mutuel wagering in
8accordance with the Illinois Horse Racing Act of 1975. With
9respect only to gaming pursuant to an organization gaming
10license, "organization licensee" includes the authorization
11for gaming created under subsection (a) of Section 56 of the
12Illinois Horse Racing Act of 1975.
13(Source: P.A. 100-391, eff. 8-25-17.)
 
14    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
15    Sec. 5. Gaming Board.
16    (a) (1) There is hereby established the Illinois Gaming
17Board, which shall have the powers and duties specified in this
18Act, and all other powers necessary and proper to fully and
19effectively execute this Act for the purpose of administering,
20regulating, and enforcing the system of riverboat and casino
21gambling established by this Act and gaming pursuant to an
22organization gaming license issued under this Act. Its
23jurisdiction shall extend under this Act to every person,
24association, corporation, partnership and trust involved in
25riverboat and casino gambling operations and gaming pursuant to

 

 

10100SB0690ham003- 602 -LRB101 04451 SMS 61572 a

1an organization gaming license issued under this Act in the
2State of Illinois.
3    (2) The Board shall consist of 5 members to be appointed by
4the Governor with the advice and consent of the Senate, one of
5whom shall be designated by the Governor to be chairperson
6chairman. Each member shall have a reasonable knowledge of the
7practice, procedure and principles of gambling operations.
8Each member shall either be a resident of Illinois or shall
9certify that he or she will become a resident of Illinois
10before taking office.
11    On and after the effective date of this amendatory Act of
12the 101st General Assembly, new appointees to the Board must
13include the following:
14        (A) One member who has received, at a minimum, a
15    bachelor's degree from an accredited school and at least 10
16    years of verifiable experience in the fields of
17    investigation and law enforcement.
18        (B) One member who is a certified public accountant
19    with experience in auditing and with knowledge of complex
20    corporate structures and transactions.
21        (C) One member who has 5 years' experience as a
22    principal, senior officer, or director of a company or
23    business with either material responsibility for the daily
24    operations and management of the overall company or
25    business or material responsibility for the policy making
26    of the company or business.

 

 

10100SB0690ham003- 603 -LRB101 04451 SMS 61572 a

1        (D) One member who is an attorney licensed to practice
2    law in Illinois for at least 5 years.
3    Notwithstanding any provision of this subsection (a), the
4requirements of subparagraphs (A) through (D) of this paragraph
5(2) shall not apply to any person reappointed pursuant to
6paragraph (3).
7    No more than 3 members of the Board may be from the same
8political party. No Board member shall, within a period of one
9year immediately preceding nomination, have been employed or
10received compensation or fees for services from a person or
11entity, or its parent or affiliate, that has engaged in
12business with the Board, a licensee, or a licensee under the
13Illinois Horse Racing Act of 1975. Board members must publicly
14disclose all prior affiliations with gaming interests,
15including any compensation, fees, bonuses, salaries, and other
16reimbursement received from a person or entity, or its parent
17or affiliate, that has engaged in business with the Board, a
18licensee, or a licensee under the Illinois Horse Racing Act of
191975. This disclosure must be made within 30 days after
20nomination but prior to confirmation by the Senate and must be
21made available to the members of the Senate. At least one
22member shall be experienced in law enforcement and criminal
23investigation, at least one member shall be a certified public
24accountant experienced in accounting and auditing, and at least
25one member shall be a lawyer licensed to practice law in
26Illinois.

 

 

10100SB0690ham003- 604 -LRB101 04451 SMS 61572 a

1    (3) The terms of office of the Board members shall be 3
2years, except that the terms of office of the initial Board
3members appointed pursuant to this Act will commence from the
4effective date of this Act and run as follows: one for a term
5ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
6a term ending July 1, 1993. Upon the expiration of the
7foregoing terms, the successors of such members shall serve a
8term for 3 years and until their successors are appointed and
9qualified for like terms. Vacancies in the Board shall be
10filled for the unexpired term in like manner as original
11appointments. Each member of the Board shall be eligible for
12reappointment at the discretion of the Governor with the advice
13and consent of the Senate.
14    (4) Each member of the Board shall receive $300 for each
15day the Board meets and for each day the member conducts any
16hearing pursuant to this Act. Each member of the Board shall
17also be reimbursed for all actual and necessary expenses and
18disbursements incurred in the execution of official duties.
19    (5) No person shall be appointed a member of the Board or
20continue to be a member of the Board who is, or whose spouse,
21child or parent is, a member of the board of directors of, or a
22person financially interested in, any gambling operation
23subject to the jurisdiction of this Board, or any race track,
24race meeting, racing association or the operations thereof
25subject to the jurisdiction of the Illinois Racing Board. No
26Board member shall hold any other public office. No person

 

 

10100SB0690ham003- 605 -LRB101 04451 SMS 61572 a

1shall be a member of the Board who is not of good moral
2character or who has been convicted of, or is under indictment
3for, a felony under the laws of Illinois or any other state, or
4the United States.
5    (5.5) No member of the Board shall engage in any political
6activity. For the purposes of this Section, "political" means
7any activity in support of or in connection with any campaign
8for federal, State, or local elective office or any political
9organization, but does not include activities (i) relating to
10the support or opposition of any executive, legislative, or
11administrative action (as those terms are defined in Section 2
12of the Lobbyist Registration Act), (ii) relating to collective
13bargaining, or (iii) that are otherwise in furtherance of the
14person's official State duties or governmental and public
15service functions.
16    (6) Any member of the Board may be removed by the Governor
17for neglect of duty, misfeasance, malfeasance, or nonfeasance
18in office or for engaging in any political activity.
19    (7) Before entering upon the discharge of the duties of his
20office, each member of the Board shall take an oath that he
21will faithfully execute the duties of his office according to
22the laws of the State and the rules and regulations adopted
23therewith and shall give bond to the State of Illinois,
24approved by the Governor, in the sum of $25,000. Every such
25bond, when duly executed and approved, shall be recorded in the
26office of the Secretary of State. Whenever the Governor

 

 

10100SB0690ham003- 606 -LRB101 04451 SMS 61572 a

1determines that the bond of any member of the Board has become
2or is likely to become invalid or insufficient, he shall
3require such member forthwith to renew his bond, which is to be
4approved by the Governor. Any member of the Board who fails to
5take oath and give bond within 30 days from the date of his
6appointment, or who fails to renew his bond within 30 days
7after it is demanded by the Governor, shall be guilty of
8neglect of duty and may be removed by the Governor. The cost of
9any bond given by any member of the Board under this Section
10shall be taken to be a part of the necessary expenses of the
11Board.
12    (7.5) For the examination of all mechanical,
13electromechanical, or electronic table games, slot machines,
14slot accounting systems, sports wagering systems, and other
15electronic gaming equipment, and the field inspection of such
16systems, games, and machines, for compliance with this Act, the
17Board shall may utilize the services of one or more independent
18outside testing laboratories that have been accredited in
19accordance with ISO/IEC 17025 by an accreditation body that is
20a signatory to the International Laboratory Accreditation
21Cooperation Mutual Recognition Agreement signifying they by a
22national accreditation body and that, in the judgment of the
23Board, are qualified to perform such examinations.
24Notwithstanding any law to the contrary, the Board shall
25consider the licensing of independent outside testing
26laboratory applicants in accordance with procedures

 

 

10100SB0690ham003- 607 -LRB101 04451 SMS 61572 a

1established by the Board by rule. The Board shall not withhold
2its approval of an independent outside testing laboratory
3license applicant that has been accredited as required under
4this paragraph (7.5) and is licensed in gaming jurisdictions
5comparable to Illinois. Upon the finalization of required
6rules, the Board shall license independent testing
7laboratories and accept the test reports of any licensed
8testing laboratory of the system's, game's, or machine
9manufacturer's choice, notwithstanding the existence of
10contracts between the Board and any independent testing
11laboratory.
12    (8) The Board shall employ such personnel as may be
13necessary to carry out its functions and shall determine the
14salaries of all personnel, except those personnel whose
15salaries are determined under the terms of a collective
16bargaining agreement. No person shall be employed to serve the
17Board who is, or whose spouse, parent or child is, an official
18of, or has a financial interest in or financial relation with,
19any operator engaged in gambling operations within this State
20or any organization engaged in conducting horse racing within
21this State. For the one year immediately preceding employment,
22an employee shall not have been employed or received
23compensation or fees for services from a person or entity, or
24its parent or affiliate, that has engaged in business with the
25Board, a licensee, or a licensee under the Illinois Horse
26Racing Act of 1975. Any employee violating these prohibitions

 

 

10100SB0690ham003- 608 -LRB101 04451 SMS 61572 a

1shall be subject to termination of employment.
2    (9) An Administrator shall perform any and all duties that
3the Board shall assign him. The salary of the Administrator
4shall be determined by the Board and, in addition, he shall be
5reimbursed for all actual and necessary expenses incurred by
6him in discharge of his official duties. The Administrator
7shall keep records of all proceedings of the Board and shall
8preserve all records, books, documents and other papers
9belonging to the Board or entrusted to its care. The
10Administrator shall devote his full time to the duties of the
11office and shall not hold any other office or employment.
12    (b) The Board shall have general responsibility for the
13implementation of this Act. Its duties include, without
14limitation, the following:
15        (1) To decide promptly and in reasonable order all
16    license applications. Any party aggrieved by an action of
17    the Board denying, suspending, revoking, restricting or
18    refusing to renew a license may request a hearing before
19    the Board. A request for a hearing must be made to the
20    Board in writing within 5 days after service of notice of
21    the action of the Board. Notice of the action of the Board
22    shall be served either by personal delivery or by certified
23    mail, postage prepaid, to the aggrieved party. Notice
24    served by certified mail shall be deemed complete on the
25    business day following the date of such mailing. The Board
26    shall conduct any such all requested hearings promptly and

 

 

10100SB0690ham003- 609 -LRB101 04451 SMS 61572 a

1    in reasonable order;
2        (2) To conduct all hearings pertaining to civil
3    violations of this Act or rules and regulations promulgated
4    hereunder;
5        (3) To promulgate such rules and regulations as in its
6    judgment may be necessary to protect or enhance the
7    credibility and integrity of gambling operations
8    authorized by this Act and the regulatory process
9    hereunder;
10        (4) To provide for the establishment and collection of
11    all license and registration fees and taxes imposed by this
12    Act and the rules and regulations issued pursuant hereto.
13    All such fees and taxes shall be deposited into the State
14    Gaming Fund;
15        (5) To provide for the levy and collection of penalties
16    and fines for the violation of provisions of this Act and
17    the rules and regulations promulgated hereunder. All such
18    fines and penalties shall be deposited into the Education
19    Assistance Fund, created by Public Act 86-0018, of the
20    State of Illinois;
21        (6) To be present through its inspectors and agents any
22    time gambling operations are conducted on any riverboat, in
23    any casino, or at any organization gaming facility for the
24    purpose of certifying the revenue thereof, receiving
25    complaints from the public, and conducting such other
26    investigations into the conduct of the gambling games and

 

 

10100SB0690ham003- 610 -LRB101 04451 SMS 61572 a

1    the maintenance of the equipment as from time to time the
2    Board may deem necessary and proper;
3        (7) To review and rule upon any complaint by a licensee
4    regarding any investigative procedures of the State which
5    are unnecessarily disruptive of gambling operations. The
6    need to inspect and investigate shall be presumed at all
7    times. The disruption of a licensee's operations shall be
8    proved by clear and convincing evidence, and establish
9    that: (A) the procedures had no reasonable law enforcement
10    purposes, and (B) the procedures were so disruptive as to
11    unreasonably inhibit gambling operations;
12        (8) To hold at least one meeting each quarter of the
13    fiscal year. In addition, special meetings may be called by
14    the Chairman or any 2 Board members upon 72 hours written
15    notice to each member. All Board meetings shall be subject
16    to the Open Meetings Act. Three members of the Board shall
17    constitute a quorum, and 3 votes shall be required for any
18    final determination by the Board. The Board shall keep a
19    complete and accurate record of all its meetings. A
20    majority of the members of the Board shall constitute a
21    quorum for the transaction of any business, for the
22    performance of any duty, or for the exercise of any power
23    which this Act requires the Board members to transact,
24    perform or exercise en banc, except that, upon order of the
25    Board, one of the Board members or an administrative law
26    judge designated by the Board may conduct any hearing

 

 

10100SB0690ham003- 611 -LRB101 04451 SMS 61572 a

1    provided for under this Act or by Board rule and may
2    recommend findings and decisions to the Board. The Board
3    member or administrative law judge conducting such hearing
4    shall have all powers and rights granted to the Board in
5    this Act. The record made at the time of the hearing shall
6    be reviewed by the Board, or a majority thereof, and the
7    findings and decision of the majority of the Board shall
8    constitute the order of the Board in such case;
9        (9) To maintain records which are separate and distinct
10    from the records of any other State board or commission.
11    Such records shall be available for public inspection and
12    shall accurately reflect all Board proceedings;
13        (10) To file a written annual report with the Governor
14    on or before July 1 each year and such additional reports
15    as the Governor may request. The annual report shall
16    include a statement of receipts and disbursements by the
17    Board, actions taken by the Board, and any additional
18    information and recommendations which the Board may deem
19    valuable or which the Governor may request;
20        (11) (Blank);
21        (12) (Blank);
22        (13) To assume responsibility for administration and
23    enforcement of the Video Gaming Act; and
24        (13.1) To assume responsibility for the administration
25    and enforcement of operations at organization gaming
26    facilities pursuant to this Act and the Illinois Horse

 

 

10100SB0690ham003- 612 -LRB101 04451 SMS 61572 a

1    Racing Act of 1975;
2        (13.2) To assume responsibility for the administration
3    and enforcement of the Sports Wagering Act; and
4        (14) To adopt, by rule, a code of conduct governing
5    Board members and employees that ensure, to the maximum
6    extent possible, that persons subject to this Code avoid
7    situations, relationships, or associations that may
8    represent or lead to a conflict of interest.
9    Internal controls and changes submitted by licensees must
10be reviewed and either approved or denied with cause within 90
11days after receipt of submission is deemed final by the
12Illinois Gaming Board. In the event an internal control
13submission or change does not meet the standards set by the
14Board, staff of the Board must provide technical assistance to
15the licensee to rectify such deficiencies within 90 days after
16the initial submission and the revised submission must be
17reviewed and approved or denied with cause within 90 days after
18the date the revised submission is deemed final by the Board.
19For the purposes of this paragraph, "with cause" means that the
20approval of the submission would jeopardize the integrity of
21gaming. In the event the Board staff has not acted within the
22timeframe, the submission shall be deemed approved.
23    (c) The Board shall have jurisdiction over and shall
24supervise all gambling operations governed by this Act. The
25Board shall have all powers necessary and proper to fully and
26effectively execute the provisions of this Act, including, but

 

 

10100SB0690ham003- 613 -LRB101 04451 SMS 61572 a

1not limited to, the following:
2        (1) To investigate applicants and determine the
3    eligibility of applicants for licenses and to select among
4    competing applicants the applicants which best serve the
5    interests of the citizens of Illinois.
6        (2) To have jurisdiction and supervision over all
7    riverboat gambling operations authorized under this Act in
8    this State and all persons in places on riverboats where
9    gambling operations are conducted.
10        (3) To promulgate rules and regulations for the purpose
11    of administering the provisions of this Act and to
12    prescribe rules, regulations and conditions under which
13    all riverboat gambling operations subject to this Act in
14    the State shall be conducted. Such rules and regulations
15    are to provide for the prevention of practices detrimental
16    to the public interest and for the best interests of
17    riverboat gambling, including rules and regulations
18    regarding the inspection of organization gaming
19    facilities, casinos, and such riverboats, and the review of
20    any permits or licenses necessary to operate a riverboat,
21    casino, or organization gaming facility under any laws or
22    regulations applicable to riverboats, casinos, or
23    organization gaming facilities and to impose penalties for
24    violations thereof.
25        (4) To enter the office, riverboats, casinos,
26    organization gaming facilities, and other facilities, or

 

 

10100SB0690ham003- 614 -LRB101 04451 SMS 61572 a

1    other places of business of a licensee, where evidence of
2    the compliance or noncompliance with the provisions of this
3    Act is likely to be found.
4        (5) To investigate alleged violations of this Act or
5    the rules of the Board and to take appropriate disciplinary
6    action against a licensee or a holder of an occupational
7    license for a violation, or institute appropriate legal
8    action for enforcement, or both.
9        (6) To adopt standards for the licensing of all persons
10    and entities under this Act, as well as for electronic or
11    mechanical gambling games, and to establish fees for such
12    licenses.
13        (7) To adopt appropriate standards for all
14    organization gaming facilities, riverboats, casinos, and
15    other facilities authorized under this Act.
16        (8) To require that the records, including financial or
17    other statements of any licensee under this Act, shall be
18    kept in such manner as prescribed by the Board and that any
19    such licensee involved in the ownership or management of
20    gambling operations submit to the Board an annual balance
21    sheet and profit and loss statement, list of the
22    stockholders or other persons having a 1% or greater
23    beneficial interest in the gambling activities of each
24    licensee, and any other information the Board deems
25    necessary in order to effectively administer this Act and
26    all rules, regulations, orders and final decisions

 

 

10100SB0690ham003- 615 -LRB101 04451 SMS 61572 a

1    promulgated under this Act.
2        (9) To conduct hearings, issue subpoenas for the
3    attendance of witnesses and subpoenas duces tecum for the
4    production of books, records and other pertinent documents
5    in accordance with the Illinois Administrative Procedure
6    Act, and to administer oaths and affirmations to the
7    witnesses, when, in the judgment of the Board, it is
8    necessary to administer or enforce this Act or the Board
9    rules.
10        (10) To prescribe a form to be used by any licensee
11    involved in the ownership or management of gambling
12    operations as an application for employment for their
13    employees.
14        (11) To revoke or suspend licenses, as the Board may
15    see fit and in compliance with applicable laws of the State
16    regarding administrative procedures, and to review
17    applications for the renewal of licenses. The Board may
18    suspend an owners license or an organization gaming
19    license , without notice or hearing upon a determination
20    that the safety or health of patrons or employees is
21    jeopardized by continuing a gambling operation conducted
22    under that license riverboat's operation. The suspension
23    may remain in effect until the Board determines that the
24    cause for suspension has been abated. The Board may revoke
25    an the owners license or organization gaming license upon a
26    determination that the licensee owner has not made

 

 

10100SB0690ham003- 616 -LRB101 04451 SMS 61572 a

1    satisfactory progress toward abating the hazard.
2        (12) To eject or exclude or authorize the ejection or
3    exclusion of, any person from riverboat gambling
4    facilities where that such person is in violation of this
5    Act, rules and regulations thereunder, or final orders of
6    the Board, or where such person's conduct or reputation is
7    such that his or her presence within the riverboat gambling
8    facilities may, in the opinion of the Board, call into
9    question the honesty and integrity of the gambling
10    operations or interfere with the orderly conduct thereof;
11    provided that the propriety of such ejection or exclusion
12    is subject to subsequent hearing by the Board.
13        (13) To require all licensees of gambling operations to
14    utilize a cashless wagering system whereby all players'
15    money is converted to tokens, electronic cards, or chips
16    which shall be used only for wagering in the gambling
17    establishment.
18        (14) (Blank).
19        (15) To suspend, revoke or restrict licenses, to
20    require the removal of a licensee or an employee of a
21    licensee for a violation of this Act or a Board rule or for
22    engaging in a fraudulent practice, and to impose civil
23    penalties of up to $5,000 against individuals and up to
24    $10,000 or an amount equal to the daily gross receipts,
25    whichever is larger, against licensees for each violation
26    of any provision of the Act, any rules adopted by the

 

 

10100SB0690ham003- 617 -LRB101 04451 SMS 61572 a

1    Board, any order of the Board or any other action which, in
2    the Board's discretion, is a detriment or impediment to
3    riverboat gambling operations.
4        (16) To hire employees to gather information, conduct
5    investigations and carry out any other tasks contemplated
6    under this Act.
7        (17) To establish minimum levels of insurance to be
8    maintained by licensees.
9        (18) To authorize a licensee to sell or serve alcoholic
10    liquors, wine or beer as defined in the Liquor Control Act
11    of 1934 on board a riverboat or in a casino and to have
12    exclusive authority to establish the hours for sale and
13    consumption of alcoholic liquor on board a riverboat or in
14    a casino, notwithstanding any provision of the Liquor
15    Control Act of 1934 or any local ordinance, and regardless
16    of whether the riverboat makes excursions. The
17    establishment of the hours for sale and consumption of
18    alcoholic liquor on board a riverboat or in a casino is an
19    exclusive power and function of the State. A home rule unit
20    may not establish the hours for sale and consumption of
21    alcoholic liquor on board a riverboat or in a casino. This
22    subdivision (18) amendatory Act of 1991 is a denial and
23    limitation of home rule powers and functions under
24    subsection (h) of Section 6 of Article VII of the Illinois
25    Constitution.
26        (19) After consultation with the U.S. Army Corps of

 

 

10100SB0690ham003- 618 -LRB101 04451 SMS 61572 a

1    Engineers, to establish binding emergency orders upon the
2    concurrence of a majority of the members of the Board
3    regarding the navigability of water, relative to
4    excursions, in the event of extreme weather conditions,
5    acts of God or other extreme circumstances.
6        (20) To delegate the execution of any of its powers
7    under this Act for the purpose of administering and
8    enforcing this Act and the its rules adopted by the Board
9    and regulations hereunder.
10        (20.5) To approve any contract entered into on its
11    behalf.
12        (20.6) To appoint investigators to conduct
13    investigations, searches, seizures, arrests, and other
14    duties imposed under this Act, as deemed necessary by the
15    Board. These investigators have and may exercise all of the
16    rights and powers of peace officers, provided that these
17    powers shall be limited to offenses or violations occurring
18    or committed in a casino, in an organization gaming
19    facility, or on a riverboat or dock, as defined in
20    subsections (d) and (f) of Section 4, or as otherwise
21    provided by this Act or any other law.
22        (20.7) To contract with the Department of State Police
23    for the use of trained and qualified State police officers
24    and with the Department of Revenue for the use of trained
25    and qualified Department of Revenue investigators to
26    conduct investigations, searches, seizures, arrests, and

 

 

10100SB0690ham003- 619 -LRB101 04451 SMS 61572 a

1    other duties imposed under this Act and to exercise all of
2    the rights and powers of peace officers, provided that the
3    powers of Department of Revenue investigators under this
4    subdivision (20.7) shall be limited to offenses or
5    violations occurring or committed in a casino, in an
6    organization gaming facility, or on a riverboat or dock, as
7    defined in subsections (d) and (f) of Section 4, or as
8    otherwise provided by this Act or any other law. In the
9    event the Department of State Police or the Department of
10    Revenue is unable to fill contracted police or
11    investigative positions, the Board may appoint
12    investigators to fill those positions pursuant to
13    subdivision (20.6).
14        (21) To adopt rules concerning the conduct of gaming
15    pursuant to an organization gaming license issued under
16    this Act.
17        (22) To have the same jurisdiction and supervision over
18    casinos and organization gaming facilities as the Board has
19    over riverboats, including, but not limited to, the power
20    to (i) investigate, review, and approve contracts as that
21    power is applied to riverboats, (ii) adopt rules for
22    administering the provisions of this Act, (iii) adopt
23    standards for the licensing of all persons involved with a
24    casino or organization gaming facility, (iv) investigate
25    alleged violations of this Act by any person involved with
26    a casino or organization gaming facility, and (v) require

 

 

10100SB0690ham003- 620 -LRB101 04451 SMS 61572 a

1    that records, including financial or other statements of
2    any casino or organization gaming facility, shall be kept
3    in such manner as prescribed by the Board.
4        (23) (21) To take any other action as may be reasonable
5    or appropriate to enforce this Act and the rules adopted by
6    the Board and regulations hereunder.
7    (d) The Board may seek and shall receive the cooperation of
8the Department of State Police in conducting background
9investigations of applicants and in fulfilling its
10responsibilities under this Section. Costs incurred by the
11Department of State Police as a result of such cooperation
12shall be paid by the Board in conformance with the requirements
13of Section 2605-400 of the Department of State Police Law (20
14ILCS 2605/2605-400).
15    (e) The Board must authorize to each investigator and to
16any other employee of the Board exercising the powers of a
17peace officer a distinct badge that, on its face, (i) clearly
18states that the badge is authorized by the Board and (ii)
19contains a unique identifying number. No other badge shall be
20authorized by the Board.
21(Source: P.A. 100-1152, eff. 12-14-18.)
 
22    (230 ILCS 10/5.1)  (from Ch. 120, par. 2405.1)
23    Sec. 5.1. Disclosure of records.
24    (a) Notwithstanding any applicable statutory provision to
25the contrary, the Board shall, on written request from any

 

 

10100SB0690ham003- 621 -LRB101 04451 SMS 61572 a

1person, provide information furnished by an applicant or
2licensee concerning the applicant or licensee, his products,
3services or gambling enterprises and his business holdings, as
4follows:
5        (1) The name, business address and business telephone
6    number of any applicant or licensee.
7        (2) An identification of any applicant or licensee
8    including, if an applicant or licensee is not an
9    individual, the names and addresses of all stockholders and
10    directors, if the entity is a corporation; the names and
11    addresses of all members, if the entity is a limited
12    liability company; the names and addresses of all partners,
13    both general and limited, if the entity is a partnership;
14    and the names and addresses of all beneficiaries, if the
15    entity is a trust the state of incorporation or
16    registration, the corporate officers, and the identity of
17    all shareholders or participants. If an applicant or
18    licensee has a pending registration statement filed with
19    the Securities and Exchange Commission, only the names of
20    those persons or entities holding interest of 5% or more
21    must be provided.
22        (3) An identification of any business, including, if
23    applicable, the state of incorporation or registration, in
24    which an applicant or licensee or an applicant's or
25    licensee's spouse or children has an equity interest of
26    more than 1%. If an applicant or licensee is a corporation,

 

 

10100SB0690ham003- 622 -LRB101 04451 SMS 61572 a

1    partnership or other business entity, the applicant or
2    licensee shall identify any other corporation, partnership
3    or business entity in which it has an equity interest of 1%
4    or more, including, if applicable, the state of
5    incorporation or registration. This information need not
6    be provided by a corporation, partnership or other business
7    entity that has a pending registration statement filed with
8    the Securities and Exchange Commission.
9        (4) Whether an applicant or licensee has been indicted,
10    convicted, pleaded guilty or nolo contendere, or forfeited
11    bail concerning any criminal offense under the laws of any
12    jurisdiction, either felony or misdemeanor (except for
13    traffic violations), including the date, the name and
14    location of the court, arresting agency and prosecuting
15    agency, the case number, the offense, the disposition and
16    the location and length of incarceration.
17        (5) Whether an applicant or licensee has had any
18    license or certificate issued by a licensing authority in
19    Illinois or any other jurisdiction denied, restricted,
20    suspended, revoked or not renewed and a statement
21    describing the facts and circumstances concerning the
22    denial, restriction, suspension, revocation or
23    non-renewal, including the licensing authority, the date
24    each such action was taken, and the reason for each such
25    action.
26        (6) Whether an applicant or licensee has ever filed or

 

 

10100SB0690ham003- 623 -LRB101 04451 SMS 61572 a

1    had filed against it a proceeding in bankruptcy or has ever
2    been involved in any formal process to adjust, defer,
3    suspend or otherwise work out the payment of any debt
4    including the date of filing, the name and location of the
5    court, the case and number of the disposition.
6        (7) Whether an applicant or licensee has filed, or been
7    served with a complaint or other notice filed with any
8    public body, regarding the delinquency in the payment of,
9    or a dispute over the filings concerning the payment of,
10    any tax required under federal, State or local law,
11    including the amount, type of tax, the taxing agency and
12    time periods involved.
13        (8) A statement listing the names and titles of all
14    public officials or officers of any unit of government, and
15    relatives of said public officials or officers who,
16    directly or indirectly, own any financial interest in, have
17    any beneficial interest in, are the creditors of or hold
18    any debt instrument issued by, or hold or have any interest
19    in any contractual or service relationship with, an
20    applicant or licensee.
21        (9) Whether an applicant or licensee has made, directly
22    or indirectly, any political contribution, or any loans,
23    donations or other payments, to any candidate or office
24    holder, within 5 years from the date of filing the
25    application, including the amount and the method of
26    payment.

 

 

10100SB0690ham003- 624 -LRB101 04451 SMS 61572 a

1        (10) The name and business telephone number of the
2    counsel representing an applicant or licensee in matters
3    before the Board.
4        (11) A description of any proposed or approved gambling
5    riverboat gaming operation, including the type of boat,
6    home dock, or casino or gaming location, expected economic
7    benefit to the community, anticipated or actual number of
8    employees, any statement from an applicant or licensee
9    regarding compliance with federal and State affirmative
10    action guidelines, projected or actual admissions and
11    projected or actual adjusted gross gaming receipts.
12        (12) A description of the product or service to be
13    supplied by an applicant for a supplier's license.
14    (b) Notwithstanding any applicable statutory provision to
15the contrary, the Board shall, on written request from any
16person, also provide the following information:
17        (1) The amount of the wagering tax and admission tax
18    paid daily to the State of Illinois by the holder of an
19    owner's license.
20        (2) Whenever the Board finds an applicant for an
21    owner's license unsuitable for licensing, a copy of the
22    written letter outlining the reasons for the denial.
23        (3) Whenever the Board has refused to grant leave for
24    an applicant to withdraw his application, a copy of the
25    letter outlining the reasons for the refusal.
26    (c) Subject to the above provisions, the Board shall not

 

 

10100SB0690ham003- 625 -LRB101 04451 SMS 61572 a

1disclose any information which would be barred by:
2        (1) Section 7 of the Freedom of Information Act; or
3        (2) The statutes, rules, regulations or
4    intergovernmental agreements of any jurisdiction.
5    (d) The Board may assess fees for the copying of
6information in accordance with Section 6 of the Freedom of
7Information Act.
8(Source: P.A. 96-1392, eff. 1-1-11.)
 
9    (230 ILCS 10/5.3 new)
10    Sec. 5.3. Ethical conduct.
11    (a) Officials and employees of the corporate authority of a
12host community must carry out their duties and responsibilities
13in such a manner as to promote and preserve public trust and
14confidence in the integrity and conduct of gaming.
15    (b) Officials and employees of the corporate authority of a
16host community shall not use or attempt to use his or her
17official position to secure or attempt to secure any privilege,
18advantage, favor, or influence for himself or herself or
19others.
20    (c) Officials and employees of the corporate authority of a
21host community may not have a financial interest, directly or
22indirectly, in his or her own name or in the name of any other
23person, partnership, association, trust, corporation, or other
24entity in any contract or subcontract for the performance of
25any work for a riverboat or casino that is located in the host

 

 

10100SB0690ham003- 626 -LRB101 04451 SMS 61572 a

1community. This prohibition shall extend to the holding or
2acquisition of an interest in any entity identified by Board
3action that, in the Board's judgment, could represent the
4potential for or the appearance of a financial interest. The
5holding or acquisition of an interest in such entities through
6an indirect means, such as through a mutual fund, shall not be
7prohibited, except that the Board may identify specific
8investments or funds that, in its judgment, are so influenced
9by gaming holdings as to represent the potential for or the
10appearance of a conflict of interest.
11    (d) Officials and employees of the corporate authority of a
12host community may not accept any gift, gratuity, service,
13compensation, travel, lodging, or thing of value, with the
14exception of unsolicited items of an incidental nature, from
15any person, corporation, or entity doing business with the
16riverboat or casino that is located in the host community.
17    (e) Officials and employees of the corporate authority of a
18host community shall not, during the period that the person is
19an official or employee of the corporate authority or for a
20period of 2 years immediately after leaving such office,
21knowingly accept employment or receive compensation or fees for
22services from a person or entity, or its parent or affiliate,
23that has engaged in business with the riverboat or casino that
24is located in the host community that resulted in contracts
25with an aggregate value of at least $25,000 or if that official
26or employee has made a decision that directly applied to the

 

 

10100SB0690ham003- 627 -LRB101 04451 SMS 61572 a

1person or entity, or its parent or affiliate.
2    (f) A spouse, child, or parent of an official or employee
3of the corporate authority of a host community may not have a
4financial interest, directly or indirectly, in his or her own
5name or in the name of any other person, partnership,
6association, trust, corporation, or other entity in any
7contract or subcontract for the performance of any work for a
8riverboat or casino in the host community. This prohibition
9shall extend to the holding or acquisition of an interest in
10any entity identified by Board action that, in the judgment of
11the Board, could represent the potential for or the appearance
12of a conflict of interest. The holding or acquisition of an
13interest in such entities through an indirect means, such as
14through a mutual fund, shall not be prohibited, expect that the
15Board may identify specific investments or funds that, in its
16judgment, are so influenced by gaming holdings as to represent
17the potential for or the appearance of a conflict of interest.
18    (g) A spouse, child, or parent of an official or employee
19of the corporate authority of a host community may not accept
20any gift, gratuity, service, compensation, travel, lodging, or
21thing of value, with the exception of unsolicited items of an
22incidental nature, from any person, corporation, or entity
23doing business with the riverboat or casino that is located in
24the host community.
25    (h) A spouse, child, or parent of an official or employee
26of the corporate authority of a host community may not, during

 

 

10100SB0690ham003- 628 -LRB101 04451 SMS 61572 a

1the period that the person is an official of the corporate
2authority or for a period of 2 years immediately after leaving
3such office or employment, knowingly accept employment or
4receive compensation or fees for services from a person or
5entity, or its parent or affiliate, that has engaged in
6business with the riverboat or casino that is located in the
7host community that resulted in contracts with an aggregate
8value of at least $25,000 or if that official or employee has
9made a decision that directly applied to the person or entity,
10or its parent or affiliate.
11    (i) Officials and employees of the corporate authority of a
12host community shall not attempt, in any way, to influence any
13person or entity doing business with the riverboat or casino
14that is located in the host community or any officer, agent, or
15employee thereof to hire or contract with any person or entity
16for any compensated work.
17    (j) Any communication between an official of the corporate
18authority of a host community and any applicant for an owners
19license in the host community, or an officer, director, or
20employee of a riverboat or casino in the host community,
21concerning any matter relating in any way to gaming shall be
22disclosed to the Board. Such disclosure shall be in writing by
23the official within 30 days after the communication and shall
24be filed with the Board. Disclosure must consist of the date of
25the communication, the identity and job title of the person
26with whom the communication was made, a brief summary of the

 

 

10100SB0690ham003- 629 -LRB101 04451 SMS 61572 a

1communication, the action requested or recommended, all
2responses made, the identity and job title of the person making
3the response, and any other pertinent information. Public
4disclosure of the written summary provided to the Board and the
5Gaming Board shall be subject to the exemptions provided under
6the Freedom of Information Act.
7    This subsection (j) shall not apply to communications
8regarding traffic, law enforcement, security, environmental
9issues, city services, transportation, or other routine
10matters concerning the ordinary operations of the riverboat or
11casino. For purposes of this subsection (j), "ordinary
12operations" means operations relating to the casino or
13riverboat facility other than the conduct of gambling
14activities, and "routine matters" includes the application
15for, issuance of, renewal of, and other processes associated
16with municipal permits and licenses.
17    (k) Any official or employee who violates any provision of
18this Section is guilty of a Class 4 felony.
19    (l) For purposes of this Section, "host community" or "host
20municipality" means a unit of local government that contains a
21riverboat or casino within its borders.
 
22    (230 ILCS 10/6)  (from Ch. 120, par. 2406)
23    Sec. 6. Application for Owners License.
24    (a) A qualified person may apply to the Board for an owners
25license to conduct a riverboat gambling operation as provided

 

 

10100SB0690ham003- 630 -LRB101 04451 SMS 61572 a

1in this Act. The application shall be made on forms provided by
2the Board and shall contain such information as the Board
3prescribes, including but not limited to the identity of the
4riverboat on which such gambling operation is to be conducted,
5if applicable, and the exact location where such riverboat or
6casino will be located docked, a certification that the
7riverboat will be registered under this Act at all times during
8which gambling operations are conducted on board, detailed
9information regarding the ownership and management of the
10applicant, and detailed personal information regarding the
11applicant. Any application for an owners license to be
12re-issued on or after June 1, 2003 shall also include the
13applicant's license bid in a form prescribed by the Board.
14Information provided on the application shall be used as a
15basis for a thorough background investigation which the Board
16shall conduct with respect to each applicant. An incomplete
17application shall be cause for denial of a license by the
18Board.
19    (a-5) In addition to any other information required under
20this Section, each application for an owners license must
21include the following information:
22        (1) The history and success of the applicant and each
23    person and entity disclosed under subsection (c) of this
24    Section in developing tourism facilities ancillary to
25    gaming, if applicable.
26        (2) The likelihood that granting a license to the

 

 

10100SB0690ham003- 631 -LRB101 04451 SMS 61572 a

1    applicant will lead to the creation of quality, living wage
2    jobs and permanent, full-time jobs for residents of the
3    State and residents of the unit of local government that is
4    designated as the home dock of the proposed facility where
5    gambling is to be conducted by the applicant.
6        (3) The projected number of jobs that would be created
7    if the license is granted and the projected number of new
8    employees at the proposed facility where gambling is to be
9    conducted by the applicant.
10        (4) The record, if any, of the applicant and its
11    developer in meeting commitments to local agencies,
12    community-based organizations, and employees at other
13    locations where the applicant or its developer has
14    performed similar functions as they would perform if the
15    applicant were granted a license.
16        (5) Identification of adverse effects that might be
17    caused by the proposed facility where gambling is to be
18    conducted by the applicant, including the costs of meeting
19    increased demand for public health care, child care, public
20    transportation, affordable housing, and social services,
21    and a plan to mitigate those adverse effects.
22        (6) The record, if any, of the applicant and its
23    developer regarding compliance with:
24            (A) federal, state, and local discrimination, wage
25        and hour, disability, and occupational and
26        environmental health and safety laws; and

 

 

10100SB0690ham003- 632 -LRB101 04451 SMS 61572 a

1            (B) state and local labor relations and employment
2        laws.
3        (7) The applicant's record, if any, in dealing with its
4    employees and their representatives at other locations.
5        (8) A plan concerning the utilization of
6    minority-owned and women-owned businesses and concerning
7    the hiring of minorities and women.
8        (9) Evidence the applicant used its best efforts to
9    reach a goal of 25% ownership representation by minority
10    persons and 5% ownership representation by women.
11    (b) Applicants shall submit with their application all
12documents, resolutions, and letters of support from the
13governing body that represents the municipality or county
14wherein the licensee will be located dock.
15    (c) Each applicant shall disclose the identity of every
16person or entity , association, trust or corporation having a
17greater than 1% direct or indirect pecuniary interest in the
18riverboat gambling operation with respect to which the license
19is sought. If the disclosed entity is a trust, the application
20shall disclose the names and addresses of all the
21beneficiaries; if a corporation, the names and addresses of all
22stockholders and directors; if a partnership, the names and
23addresses of all partners, both general and limited.
24    (d) An application shall be filed and considered in
25accordance with the rules of the Board. Each application shall
26be accompanied by a nonrefundable An application fee of

 

 

10100SB0690ham003- 633 -LRB101 04451 SMS 61572 a

1$250,000. In addition, a nonrefundable fee of $50,000 shall be
2paid at the time of filing to defray the costs associated with
3the background investigation conducted by the Board. If the
4costs of the investigation exceed $50,000, the applicant shall
5pay the additional amount to the Board within 7 days after
6requested by the Board. If the costs of the investigation are
7less than $50,000, the applicant shall receive a refund of the
8remaining amount. All information, records, interviews,
9reports, statements, memoranda or other data supplied to or
10used by the Board in the course of its review or investigation
11of an application for a license or a renewal under this Act
12shall be privileged, strictly confidential and shall be used
13only for the purpose of evaluating an applicant for a license
14or a renewal. Such information, records, interviews, reports,
15statements, memoranda or other data shall not be admissible as
16evidence, nor discoverable in any action of any kind in any
17court or before any tribunal, board, agency or person, except
18for any action deemed necessary by the Board. The application
19fee shall be deposited into the State Gaming Fund.
20    (e) The Board shall charge each applicant a fee set by the
21Department of State Police to defray the costs associated with
22the search and classification of fingerprints obtained by the
23Board with respect to the applicant's application. These fees
24shall be paid into the State Police Services Fund. In order to
25expedite the application process, the Board may establish rules
26allowing applicants to acquire criminal background checks and

 

 

10100SB0690ham003- 634 -LRB101 04451 SMS 61572 a

1financial integrity reviews as part of the initial application
2process from a list of vendors approved by the Board.
3    (f) The licensed owner shall be the person primarily
4responsible for the boat or casino itself. Only one riverboat
5gambling operation may be authorized by the Board on any
6riverboat or in any casino. The applicant must identify the
7each riverboat or premises it intends to use and certify that
8the riverboat or premises: (1) has the authorized capacity
9required in this Act; (2) is accessible to persons with
10disabilities; and (3) is fully registered and licensed in
11accordance with any applicable laws.
12    (g) A person who knowingly makes a false statement on an
13application is guilty of a Class A misdemeanor.
14(Source: P.A. 99-143, eff. 7-27-15.)
 
15    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
16    Sec. 7. Owners licenses.
17    (a) The Board shall issue owners licenses to persons or
18entities that , firms or corporations which apply for such
19licenses upon payment to the Board of the non-refundable
20license fee as provided in subsection (e) or (e-5) set by the
21Board, upon payment of a $25,000 license fee for the first year
22of operation and a $5,000 license fee for each succeeding year
23and upon a determination by the Board that the applicant is
24eligible for an owners license pursuant to this Act and the
25rules of the Board. From the effective date of this amendatory

 

 

10100SB0690ham003- 635 -LRB101 04451 SMS 61572 a

1Act of the 95th General Assembly until (i) 3 years after the
2effective date of this amendatory Act of the 95th General
3Assembly, (ii) the date any organization licensee begins to
4operate a slot machine or video game of chance under the
5Illinois Horse Racing Act of 1975 or this Act, (iii) the date
6that payments begin under subsection (c-5) of Section 13 of the
7Act, or (iv) the wagering tax imposed under Section 13 of this
8Act is increased by law to reflect a tax rate that is at least
9as stringent or more stringent than the tax rate contained in
10subsection (a-3) of Section 13, or (v) when an owners licensee
11holding a license issued pursuant to Section 7.1 of this Act
12begins conducting gaming, whichever occurs first, as a
13condition of licensure and as an alternative source of payment
14for those funds payable under subsection (c-5) of Section 13 of
15this the Riverboat Gambling Act, any owners licensee that holds
16or receives its owners license on or after the effective date
17of this amendatory Act of the 94th General Assembly, other than
18an owners licensee operating a riverboat with adjusted gross
19receipts in calendar year 2004 of less than $200,000,000, must
20pay into the Horse Racing Equity Trust Fund, in addition to any
21other payments required under this Act, an amount equal to 3%
22of the adjusted gross receipts received by the owners licensee.
23The payments required under this Section shall be made by the
24owners licensee to the State Treasurer no later than 3:00
25o'clock p.m. of the day after the day when the adjusted gross
26receipts were received by the owners licensee. A person, firm

 

 

10100SB0690ham003- 636 -LRB101 04451 SMS 61572 a

1or entity corporation is ineligible to receive an owners
2license if:
3        (1) the person has been convicted of a felony under the
4    laws of this State, any other state, or the United States;
5        (2) the person has been convicted of any violation of
6    Article 28 of the Criminal Code of 1961 or the Criminal
7    Code of 2012, or substantially similar laws of any other
8    jurisdiction;
9        (3) the person has submitted an application for a
10    license under this Act which contains false information;
11        (4) the person is a member of the Board;
12        (5) a person defined in (1), (2), (3) or (4) is an
13    officer, director or managerial employee of the entity firm
14    or corporation;
15        (6) the entity firm or corporation employs a person
16    defined in (1), (2), (3) or (4) who participates in the
17    management or operation of gambling operations authorized
18    under this Act;
19        (7) (blank); or
20        (8) a license of the person or entity , firm or
21    corporation issued under this Act, or a license to own or
22    operate gambling facilities in any other jurisdiction, has
23    been revoked.
24    The Board is expressly prohibited from making changes to
25the requirement that licensees make payment into the Horse
26Racing Equity Trust Fund without the express authority of the

 

 

10100SB0690ham003- 637 -LRB101 04451 SMS 61572 a

1Illinois General Assembly and making any other rule to
2implement or interpret this amendatory Act of the 95th General
3Assembly. For the purposes of this paragraph, "rules" is given
4the meaning given to that term in Section 1-70 of the Illinois
5Administrative Procedure Act.
6    (b) In determining whether to grant an owners license to an
7applicant, the Board shall consider:
8        (1) the character, reputation, experience and
9    financial integrity of the applicants and of any other or
10    separate person that either:
11            (A) controls, directly or indirectly, such
12        applicant, or
13            (B) is controlled, directly or indirectly, by such
14        applicant or by a person which controls, directly or
15        indirectly, such applicant;
16        (2) the facilities or proposed facilities for the
17    conduct of riverboat gambling;
18        (3) the highest prospective total revenue to be derived
19    by the State from the conduct of riverboat gambling;
20        (4) the extent to which the ownership of the applicant
21    reflects the diversity of the State by including minority
22    persons, women, and persons with a disability and the good
23    faith affirmative action plan of each applicant to recruit,
24    train and upgrade minority persons, women, and persons with
25    a disability in all employment classifications; the Board
26    shall further consider granting an owners license and

 

 

10100SB0690ham003- 638 -LRB101 04451 SMS 61572 a

1    giving preference to an applicant under this Section to
2    applicants in which minority persons and women hold
3    ownership interest of at least 16% and 4%, respectively.
4        (4.5) the extent to which the ownership of the
5    applicant includes veterans of service in the armed forces
6    of the United States, and the good faith affirmative action
7    plan of each applicant to recruit, train, and upgrade
8    veterans of service in the armed forces of the United
9    States in all employment classifications;
10        (5) the financial ability of the applicant to purchase
11    and maintain adequate liability and casualty insurance;
12        (6) whether the applicant has adequate capitalization
13    to provide and maintain, for the duration of a license, a
14    riverboat or casino;
15        (7) the extent to which the applicant exceeds or meets
16    other standards for the issuance of an owners license which
17    the Board may adopt by rule; and
18        (8) the The amount of the applicant's license bid; .
19        (9) the extent to which the applicant or the proposed
20    host municipality plans to enter into revenue sharing
21    agreements with communities other than the host
22    municipality; and
23        (10) the extent to which the ownership of an applicant
24    includes the most qualified number of minority persons,
25    women, and persons with a disability.
26    (c) Each owners license shall specify the place where the

 

 

10100SB0690ham003- 639 -LRB101 04451 SMS 61572 a

1casino riverboats shall operate or the riverboat shall operate
2and dock.
3    (d) Each applicant shall submit with his application, on
4forms provided by the Board, 2 sets of his fingerprints.
5    (e) In addition to any licenses authorized under subsection
6(e-5) of this Section, the The Board may issue up to 10
7licenses authorizing the holders of such licenses to own
8riverboats. In the application for an owners license, the
9applicant shall state the dock at which the riverboat is based
10and the water on which the riverboat will be located. The Board
11shall issue 5 licenses to become effective not earlier than
12January 1, 1991. Three of such licenses shall authorize
13riverboat gambling on the Mississippi River, or, with approval
14by the municipality in which the riverboat was docked on August
157, 2003 and with Board approval, be authorized to relocate to a
16new location, in a municipality that (1) borders on the
17Mississippi River or is within 5 miles of the city limits of a
18municipality that borders on the Mississippi River and (2), on
19August 7, 2003, had a riverboat conducting riverboat gambling
20operations pursuant to a license issued under this Act; one of
21which shall authorize riverboat gambling from a home dock in
22the city of East St. Louis; and one of which shall authorize
23riverboat gambling from a home dock in the City of Alton. One
24other license shall authorize riverboat gambling on the
25Illinois River in the City of East Peoria or, with Board
26approval, shall authorize land-based gambling operations

 

 

10100SB0690ham003- 640 -LRB101 04451 SMS 61572 a

1anywhere within the corporate limits of the City of Peoria
2south of Marshall County. The Board shall issue one additional
3license to become effective not earlier than March 1, 1992,
4which shall authorize riverboat gambling on the Des Plaines
5River in Will County. The Board may issue 4 additional licenses
6to become effective not earlier than March 1, 1992. In
7determining the water upon which riverboats will operate, the
8Board shall consider the economic benefit which riverboat
9gambling confers on the State, and shall seek to assure that
10all regions of the State share in the economic benefits of
11riverboat gambling.
12    In granting all licenses, the Board may give favorable
13consideration to economically depressed areas of the State, to
14applicants presenting plans which provide for significant
15economic development over a large geographic area, and to
16applicants who currently operate non-gambling riverboats in
17Illinois. The Board shall review all applications for owners
18licenses, and shall inform each applicant of the Board's
19decision. The Board may grant an owners license to an applicant
20that has not submitted the highest license bid, but if it does
21not select the highest bidder, the Board shall issue a written
22decision explaining why another applicant was selected and
23identifying the factors set forth in this Section that favored
24the winning bidder. The fee for issuance or renewal of a
25license pursuant to this subsection (e) shall be $250,000.
26    (e-5) In addition to licenses authorized under subsection

 

 

10100SB0690ham003- 641 -LRB101 04451 SMS 61572 a

1(e) of this Section:
2        (1) the Board may issue one owners license authorizing
3    the conduct of casino gambling in the City of Chicago;
4        (2) the Board may issue one owners license authorizing
5    the conduct of riverboat gambling in the City of Danville;
6        (3) the Board may issue one owners license authorizing
7    the conduct of riverboat gambling located in the City of
8    Waukegan;
9        (4) the Board may issue one owners license authorizing
10    the conduct of riverboat gambling in the City of Rockford;
11        (5) the Board may issue one owners license authorizing
12    the conduct of riverboat gambling in a municipality that is
13    wholly or partially located in one of the following
14    townships of Cook County: Bloom, Bremen, Calumet, Rich,
15    Thornton, or Worth Township; and
16        (6) the Board may issue one owners license authorizing
17    the conduct of riverboat gambling in the unincorporated
18    area of Williamson County adjacent to the Big Muddy River.
19    Except for the license authorized under paragraph (1), each
20application for a license pursuant to this subsection (e-5)
21shall be submitted to the Board no later than 120 days after
22the effective date of this amendatory Act of the 101st General
23Assembly. All applications for a license under this subsection
24(e-5) shall include the nonrefundable application fee and the
25nonrefundable background investigation fee as provided in
26subsection (d) of Section 6 of this Act. In the event that an

 

 

10100SB0690ham003- 642 -LRB101 04451 SMS 61572 a

1applicant submits an application for a license pursuant to this
2subsection (e-5) prior to the effective date of this amendatory
3Act of the 101st General Assembly, such applicant shall submit
4the nonrefundable application fee and background investigation
5fee as provided in subsection (d) of Section 6 of this Act no
6later than 6 months after the effective date of this amendatory
7Act of the 101st General Assembly.
8    The Board shall consider issuing a license pursuant to
9paragraphs (1) through (6) of this subsection only after the
10corporate authority of the municipality or the county board of
11the county in which the riverboat or casino shall be located
12has certified to the Board the following:
13        (i) that the applicant has negotiated with the
14    corporate authority or county board in good faith;
15        (ii) that the applicant and the corporate authority or
16    county board have mutually agreed on the permanent location
17    of the riverboat or casino;
18        (iii) that the applicant and the corporate authority or
19    county board have mutually agreed on the temporary location
20    of the riverboat or casino;
21        (iv) that the applicant and the corporate authority or
22    the county board have mutually agreed on the percentage of
23    revenues that will be shared with the municipality or
24    county, if any;
25        (v) that the applicant and the corporate authority or
26    county board have mutually agreed on any zoning, licensing,

 

 

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1    public health, or other issues that are within the
2    jurisdiction of the municipality or county; and
3        (vi) that the corporate authority or county board has
4    passed a resolution or ordinance in support of the
5    riverboat or casino in the municipality or county.
6    At least 7 days before the corporate authority of a
7municipality or county board of the county submits a
8certification to the Board concerning items (i) through (vi) of
9this subsection, it shall hold a public hearing to discuss
10items (i) through (vi), as well as any other details concerning
11the proposed riverboat or casino in the municipality or county.
12The corporate authority or county board must subsequently
13memorialize the details concerning the proposed riverboat or
14casino in a resolution that must be adopted by a majority of
15the corporate authority or county board before any
16certification is sent to the Board. The Board shall not alter,
17amend, change, or otherwise interfere with any agreement
18between the applicant and the corporate authority of the
19municipality or county board of the county regarding the
20location of any temporary or permanent facility.
21    In addition, within 10 days after the effective date of
22this amendatory Act of the 101st General Assembly, the Board,
23with consent and at the expense of the City of Chicago, shall
24select and retain the services of a nationally recognized
25casino gaming feasibility consultant. Within 45 days after the
26effective date of this amendatory Act of the 101st General

 

 

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1Assembly, the consultant shall prepare and deliver to the Board
2a study concerning the feasibility of, and the ability to
3finance, a casino in the City of Chicago. The feasibility study
4shall be delivered to the Mayor of the City of Chicago, the
5Governor, the President of the Senate, and the Speaker of the
6House of Representatives. Ninety days after receipt of the
7feasibility study, the Board shall make a determination, based
8on the results of the feasibility study, whether to recommend
9to the General Assembly that the terms of the license under
10paragraph (1) of this subsection (e-5) should be modified. The
11Board may begin accepting applications for the owners license
12under paragraph (1) of this subsection (e-5) upon the
13determination to issue such an owners license.
14    In addition, prior to the Board issuing the owners license
15authorized under paragraph (4) of subsection (e-5), an impact
16study shall be completed to determine what location in the city
17will provide the greater impact to the region, including the
18creation of jobs and the generation of tax revenue.
19    (e-10) The licenses authorized under subsection (e-5) of
20this Section shall be issued within 12 months after the date
21the license application is submitted. If the Board does not
22issue the licenses within that time period, then the Board
23shall give a written explanation to the applicant as to why it
24has not reached a determination and when it reasonably expects
25to make a determination. The fee for the issuance or renewal of
26a license issued pursuant to this subsection (e-10) shall be

 

 

10100SB0690ham003- 645 -LRB101 04451 SMS 61572 a

1$250,000. Additionally, a licensee located outside of Cook
2County shall pay a minimum initial fee of $17,500 per gaming
3position, and a licensee located in Cook County shall pay a
4minimum initial fee of $30,000 per gaming position. The initial
5fees payable under this subsection (e-10) shall be deposited
6into the Rebuild Illinois Projects Fund.
7    (e-15) Each licensee of a license authorized under
8subsection (e-5) of this Section shall make a reconciliation
9payment 3 years after the date the licensee begins operating in
10an amount equal to 75% of the adjusted gross receipts for the
11most lucrative 12-month period of operations, minus an amount
12equal to the initial payment per gaming position paid by the
13specific licensee. Each licensee shall pay a $15,000,000
14reconciliation fee upon issuance of an owners license. If this
15calculation results in a negative amount, then the licensee is
16not entitled to any reimbursement of fees previously paid. This
17reconciliation payment may be made in installments over a
18period of no more than 2 years, subject to Board approval. Any
19installment payments shall include an annual market interest
20rate as determined by the Board. All payments by licensees
21under this subsection (e-15) shall be deposited into the
22Rebuild Illinois Projects Fund.
23    (e-20) In addition to any other revocation powers granted
24to the Board under this Act, the Board may revoke the owners
25license of a licensee which fails to begin conducting gambling
26within 15 months of receipt of the Board's approval of the

 

 

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1application if the Board determines that license revocation is
2in the best interests of the State.
3    (f) The first 10 owners licenses issued under this Act
4shall permit the holder to own up to 2 riverboats and equipment
5thereon for a period of 3 years after the effective date of the
6license. Holders of the first 10 owners licenses must pay the
7annual license fee for each of the 3 years during which they
8are authorized to own riverboats.
9    (g) Upon the termination, expiration, or revocation of each
10of the first 10 licenses, which shall be issued for a 3 year
11period, all licenses are renewable annually upon payment of the
12fee and a determination by the Board that the licensee
13continues to meet all of the requirements of this Act and the
14Board's rules. However, for licenses renewed on or after May 1,
151998, renewal shall be for a period of 4 years, unless the
16Board sets a shorter period.
17    (h) An owners license, except for an owners license issued
18under subsection (e-5) of this Section, shall entitle the
19licensee to own up to 2 riverboats.
20    An owners licensee of a casino or riverboat that is located
21in the City of Chicago pursuant to paragraph (1) of subsection
22(e-5) of this Section shall limit the number of gaming
23positions to 4,000 for such owner. An owners licensee
24authorized under subsection (e) or paragraph (2), (3), (4), or
25(5) of subsection (e-5) of this Section shall limit the number
26of gaming positions to 2,000 for any such owners license. An

 

 

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1owners licensee authorized under paragraph (6) of subsection
2(e-5) of this Section A licensee shall limit the number of
3gaming positions gambling participants to 1,200 for any such
4owner. The initial fee for each gaming position obtained on or
5after the effective date of this amendatory Act of the 101st
6General Assembly shall be a minimum of $17,500 for licensees
7not located in Cook County and a minimum of $30,000 for
8licensees located in Cook County, in addition to the
9reconciliation payment, as set forth in subsection (e-15) of
10this Section owners license. The fees under this subsection (h)
11shall be deposited into the Rebuild Illinois Projects Fund. The
12fees under this subsection (h) that are paid by an owners
13licensee authorized under subsection (e) shall be paid by July
141, 2020.
15     Each owners licensee under subsection (e) of this Section
16shall reserve its gaming positions within 30 days after the
17effective date of this amendatory Act of the 101st General
18Assembly. The Board may grant an extension to this 30-day
19period, provided that the owners licensee submits a written
20request and explanation as to why it is unable to reserve its
21positions within the 30-day period.
22     Each owners licensee under subsection (e-5) of this
23Section shall reserve its gaming positions within 30 days after
24issuance of its owners license. The Board may grant an
25extension to this 30-day period, provided that the owners
26licensee submits a written request and explanation as to why it

 

 

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1is unable to reserve its positions within the 30-day period.
2    A licensee may operate both of its riverboats concurrently,
3provided that the total number of gaming positions gambling
4participants on both riverboats does not exceed the limit
5established pursuant to this subsection 1,200. Riverboats
6licensed to operate on the Mississippi River and the Illinois
7River south of Marshall County shall have an authorized
8capacity of at least 500 persons. Any other riverboat licensed
9under this Act shall have an authorized capacity of at least
10400 persons.
11    (h-5) An owners licensee who conducted gambling operations
12prior to January 1, 2012 and obtains positions pursuant to this
13amendatory Act of the 101st General Assembly shall make a
14reconciliation payment 3 years after any additional gaming
15positions begin operating in an amount equal to 75% of the
16owners licensee's average gross receipts for the most lucrative
1712-month period of operations minus an amount equal to the
18initial fee that the owners licensee paid per additional gaming
19position. For purposes of this subsection (h-5), "average gross
20receipts" means (i) the increase in adjusted gross receipts for
21the most lucrative 12-month period of operations over the
22adjusted gross receipts for 2019, multiplied by (ii) the
23percentage derived by dividing the number of additional gaming
24positions that an owners licensee had obtained by the total
25number of gaming positions operated by the owners licensee. If
26this calculation results in a negative amount, then the owners

 

 

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1licensee is not entitled to any reimbursement of fees
2previously paid. This reconciliation payment may be made in
3installments over a period of no more than 2 years, subject to
4Board approval. Any installment payments shall include an
5annual market interest rate as determined by the Board. These
6reconciliation payments shall be deposited into the Rebuild
7Illinois Projects Fund.
8    (i) A licensed owner is authorized to apply to the Board
9for and, if approved therefor, to receive all licenses from the
10Board necessary for the operation of a riverboat or casino,
11including a liquor license, a license to prepare and serve food
12for human consumption, and other necessary licenses. All use,
13occupation and excise taxes which apply to the sale of food and
14beverages in this State and all taxes imposed on the sale or
15use of tangible personal property apply to such sales aboard
16the riverboat or in the casino.
17    (j) The Board may issue or re-issue a license authorizing a
18riverboat to dock in a municipality or approve a relocation
19under Section 11.2 only if, prior to the issuance or
20re-issuance of the license or approval, the governing body of
21the municipality in which the riverboat will dock has by a
22majority vote approved the docking of riverboats in the
23municipality. The Board may issue or re-issue a license
24authorizing a riverboat to dock in areas of a county outside
25any municipality or approve a relocation under Section 11.2
26only if, prior to the issuance or re-issuance of the license or

 

 

10100SB0690ham003- 650 -LRB101 04451 SMS 61572 a

1approval, the governing body of the county has by a majority
2vote approved of the docking of riverboats within such areas.
3    (k) An owners licensee may conduct land-based gambling
4operations upon approval by the Board and payment of a fee of
5$250,000, which shall be deposited into the State Gaming Fund.
6    (l) An owners licensee may conduct gaming at a temporary
7facility pending the construction of a permanent facility or
8the remodeling or relocation of an existing facility to
9accommodate gaming participants for up to 24 months after the
10temporary facility begins to conduct gaming. Upon request by an
11owners licensee and upon a showing of good cause by the owners
12licensee, the Board shall extend the period during which the
13licensee may conduct gaming at a temporary facility by up to 12
14months. The Board shall make rules concerning the conduct of
15gaming from temporary facilities.
16(Source: P.A. 100-391, eff. 8-25-17; 100-1152, eff. 12-14-18.)
 
17    (230 ILCS 10/7.3)
18    Sec. 7.3. State conduct of gambling operations.
19    (a) If, after reviewing each application for a re-issued
20license, the Board determines that the highest prospective
21total revenue to the State would be derived from State conduct
22of the gambling operation in lieu of re-issuing the license,
23the Board shall inform each applicant of its decision. The
24Board shall thereafter have the authority, without obtaining an
25owners license, to conduct casino or riverboat gambling

 

 

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1operations as previously authorized by the terminated,
2expired, revoked, or nonrenewed license through a licensed
3manager selected pursuant to an open and competitive bidding
4process as set forth in Section 7.5 and as provided in Section
57.4.
6    (b) The Board may locate any casino or riverboat on which a
7gambling operation is conducted by the State in any home dock
8or other location authorized by Section 3(c) upon receipt of
9approval from a majority vote of the governing body of the
10municipality or county, as the case may be, in which the
11riverboat will dock.
12    (c) The Board shall have jurisdiction over and shall
13supervise all gambling operations conducted by the State
14provided for in this Act and shall have all powers necessary
15and proper to fully and effectively execute the provisions of
16this Act relating to gambling operations conducted by the
17State.
18    (d) The maximum number of owners licenses authorized under
19Section 7 7(e) shall be reduced by one for each instance in
20which the Board authorizes the State to conduct a casino or
21riverboat gambling operation under subsection (a) in lieu of
22re-issuing a license to an applicant under Section 7.1.
23(Source: P.A. 93-28, eff. 6-20-03.)
 
24    (230 ILCS 10/7.5)
25    Sec. 7.5. Competitive Bidding. When the Board determines

 

 

10100SB0690ham003- 652 -LRB101 04451 SMS 61572 a

1that (i) it will re-issue an owners license pursuant to an open
2and competitive bidding process, as set forth in Section 7.1,
3(ii) or that it will issue a managers license pursuant to an
4open and competitive bidding process, as set forth in Section
57.4, or (iii) it will issue an owners license pursuant to an
6open and competitive bidding process, as set forth in Section
77.12, the open and competitive bidding process shall adhere to
8the following procedures:
9    (1) The Board shall make applications for owners and
10managers licenses available to the public and allow a
11reasonable time for applicants to submit applications to the
12Board.
13    (2) During the filing period for owners or managers license
14applications, the Board may retain the services of an
15investment banking firm to assist the Board in conducting the
16open and competitive bidding process.
17    (3) After receiving all of the bid proposals, the Board
18shall open all of the proposals in a public forum and disclose
19the prospective owners or managers names, venture partners, if
20any, and, in the case of applicants for owners licenses, the
21locations of the proposed development sites.
22    (4) The Board shall summarize the terms of the proposals
23and may make this summary available to the public.
24    (5) The Board shall evaluate the proposals within a
25reasonable time and select no more than 3 final applicants to
26make presentations of their proposals to the Board.

 

 

10100SB0690ham003- 653 -LRB101 04451 SMS 61572 a

1    (6) The final applicants shall make their presentations to
2the Board on the same day during an open session of the Board.
3    (7) As soon as practicable after the public presentations
4by the final applicants, the Board, in its discretion, may
5conduct further negotiations among the 3 final applicants.
6During such negotiations, each final applicant may increase its
7license bid or otherwise enhance its bid proposal. At the
8conclusion of such negotiations, the Board shall select the
9winning proposal. In the case of negotiations for an owners
10license, the Board may, at the conclusion of such negotiations,
11make the determination allowed under Section 7.3(a).
12    (8) Upon selection of a winning bid, the Board shall
13evaluate the winning bid within a reasonable period of time for
14licensee suitability in accordance with all applicable
15statutory and regulatory criteria.
16    (9) If the winning bidder is unable or otherwise fails to
17consummate the transaction, (including if the Board determines
18that the winning bidder does not satisfy the suitability
19requirements), the Board may, on the same criteria, select from
20the remaining bidders or make the determination allowed under
21Section 7.3(a).
22(Source: P.A. 93-28, eff. 6-20-03.)
 
23    (230 ILCS 10/7.7 new)
24    Sec. 7.7. Organization gaming licenses.
25    (a) The Illinois Gaming Board shall award one organization

 

 

10100SB0690ham003- 654 -LRB101 04451 SMS 61572 a

1gaming license to each person or entity having operating
2control of a racetrack that applies under Section 56 of the
3Illinois Horse Racing Act of 1975, subject to the application
4and eligibility requirements of this Section. Within 60 days
5after the effective date of this amendatory Act of the 101st
6General Assembly, a person or entity having operating control
7of a racetrack may submit an application for an organization
8gaming license. The application shall be made on such forms as
9provided by the Board and shall contain such information as the
10Board prescribes, including, but not limited to, the identity
11of any racetrack at which gaming will be conducted pursuant to
12an organization gaming license, detailed information regarding
13the ownership and management of the applicant, and detailed
14personal information regarding the applicant. The application
15shall specify the number of gaming positions the applicant
16intends to use and the place where the organization gaming
17facility will operate. A person who knowingly makes a false
18statement on an application is guilty of a Class A misdemeanor.
19    Each applicant shall disclose the identity of every person
20or entity having a direct or indirect pecuniary interest
21greater than 1% in any racetrack with respect to which the
22license is sought. If the disclosed entity is a corporation,
23the applicant shall disclose the names and addresses of all
24stockholders and directors. If the disclosed entity is a
25limited liability company, the applicant shall disclose the
26names and addresses of all members and managers. If the

 

 

10100SB0690ham003- 655 -LRB101 04451 SMS 61572 a

1disclosed entity is a partnership, the applicant shall disclose
2the names and addresses of all partners, both general and
3limited. If the disclosed entity is a trust, the applicant
4shall disclose the names and addresses of all beneficiaries.
5    An application shall be filed and considered in accordance
6with the rules of the Board. Each application for an
7organization gaming license shall include a nonrefundable
8application fee of $250,000. In addition, a nonrefundable fee
9of $50,000 shall be paid at the time of filing to defray the
10costs associated with background investigations conducted by
11the Board. If the costs of the background investigation exceed
12$50,000, the applicant shall pay the additional amount to the
13Board within 7 days after a request by the Board. If the costs
14of the investigation are less than $50,000, the applicant shall
15receive a refund of the remaining amount. All information,
16records, interviews, reports, statements, memoranda, or other
17data supplied to or used by the Board in the course of this
18review or investigation of an applicant for an organization
19gaming license under this Act shall be privileged and strictly
20confidential and shall be used only for the purpose of
21evaluating an applicant for an organization gaming license or a
22renewal. Such information, records, interviews, reports,
23statements, memoranda, or other data shall not be admissible as
24evidence nor discoverable in any action of any kind in any
25court or before any tribunal, board, agency or person, except
26for any action deemed necessary by the Board. The application

 

 

10100SB0690ham003- 656 -LRB101 04451 SMS 61572 a

1fee shall be deposited into the State Gaming Fund.
2    Each applicant shall submit with his or her application, on
3forms provided by the Board, a set of his or her fingerprints.
4The Board shall charge each applicant a fee set by the
5Department of State Police to defray the costs associated with
6the search and classification of fingerprints obtained by the
7Board with respect to the applicant's application. This fee
8shall be paid into the State Police Services Fund.
9    (b) The Board shall determine within 120 days after
10receiving an application for an organization gaming license
11whether to grant an organization gaming license to the
12applicant. If the Board does not make a determination within
13that time period, then the Board shall give a written
14explanation to the applicant as to why it has not reached a
15determination and when it reasonably expects to make a
16determination.
17    The organization gaming licensee shall purchase up to the
18amount of gaming positions authorized under this Act within 120
19days after receiving its organization gaming license. If an
20organization gaming licensee is prepared to purchase the gaming
21positions, but is temporarily prohibited from doing so by order
22of a court of competent jurisdiction or the Board, then the
23120-day period is tolled until a resolution is reached.
24    An organization gaming license shall authorize its holder
25to conduct gaming under this Act at its racetracks on the same
26days of the year and hours of the day that owners licenses are

 

 

10100SB0690ham003- 657 -LRB101 04451 SMS 61572 a

1allowed to operate under approval of the Board.
2    An organization gaming license and any renewal of an
3organization gaming license shall authorize gaming pursuant to
4this Section for a period of 4 years. The fee for the issuance
5or renewal of an organization gaming license shall be $250,000.
6    All payments by licensees under this subsection (b) shall
7be deposited into the Rebuild Illinois Projects Fund.
8    (c) To be eligible to conduct gaming under this Section, a
9person or entity having operating control of a racetrack must
10(i) obtain an organization gaming license, (ii) hold an
11organization license under the Illinois Horse Racing Act of
121975, (iii) hold an inter-track wagering license, (iv) pay an
13initial fee of $30,000 per gaming position from organization
14gaming licensees where gaming is conducted in Cook County and,
15except as provided in subsection (c-5), $17,500 for
16organization gaming licensees where gaming is conducted
17outside of Cook County before beginning to conduct gaming plus
18make the reconciliation payment required under subsection (k),
19(v) conduct live racing in accordance with subsections (e-1),
20(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act
21of 1975, (vi) meet the requirements of subsection (a) of
22Section 56 of the Illinois Horse Racing Act of 1975, (vii) for
23organization licensees conducting standardbred race meetings,
24keep backstretch barns and dormitories open and operational
25year-round unless a lesser schedule is mutually agreed to by
26the organization licensee and the horsemen association racing

 

 

10100SB0690ham003- 658 -LRB101 04451 SMS 61572 a

1at that organization licensee's race meeting, (viii) for
2organization licensees conducting thoroughbred race meetings,
3the organization licensee must maintain accident medical
4expense liability insurance coverage of $1,000,000 for
5jockeys, and (ix) meet all other requirements of this Act that
6apply to owners licensees.
7    An organization gaming licensee may enter into a joint
8venture with a licensed owner to own, manage, conduct, or
9otherwise operate the organization gaming licensee's
10organization gaming facilities, unless the organization gaming
11licensee has a parent company or other affiliated company that
12is, directly or indirectly, wholly owned by a parent company
13that is also licensed to conduct organization gaming, casino
14gaming, or their equivalent in another state.
15    All payments by licensees under this subsection (c) shall
16be deposited into the Rebuild Illinois Projects Fund.
17    (c-5) A person or entity having operating control of a
18racetrack located in Madison County shall only pay the initial
19fees specified in subsection (c) for 540 of the gaming
20positions authorized under the license.
21    (d) A person or entity is ineligible to receive an
22organization gaming license if:
23        (1) the person or entity has been convicted of a felony
24    under the laws of this State, any other state, or the
25    United States, including a conviction under the Racketeer
26    Influenced and Corrupt Organizations Act;

 

 

10100SB0690ham003- 659 -LRB101 04451 SMS 61572 a

1        (2) the person or entity has been convicted of any
2    violation of Article 28 of the Criminal Code of 2012, or
3    substantially similar laws of any other jurisdiction;
4        (3) the person or entity has submitted an application
5    for a license under this Act that contains false
6    information;
7        (4) the person is a member of the Board;
8        (5) a person defined in (1), (2), (3), or (4) of this
9    subsection (d) is an officer, director, or managerial
10    employee of the entity;
11        (6) the person or entity employs a person defined in
12    (1), (2), (3), or (4) of this subsection (d) who
13    participates in the management or operation of gambling
14    operations authorized under this Act; or
15        (7) a license of the person or entity issued under this
16    Act or a license to own or operate gambling facilities in
17    any other jurisdiction has been revoked.
18    (e) The Board may approve gaming positions pursuant to an
19organization gaming license statewide as provided in this
20Section. The authority to operate gaming positions under this
21Section shall be allocated as follows: up to 1,200 gaming
22positions for any organization gaming licensee in Cook County
23and up to 900 gaming positions for any organization gaming
24licensee outside of Cook County.
25    (f) Each applicant for an organization gaming license shall
26specify in its application for licensure the number of gaming

 

 

10100SB0690ham003- 660 -LRB101 04451 SMS 61572 a

1positions it will operate, up to the applicable limitation set
2forth in subsection (e) of this Section. Any unreserved gaming
3positions that are not specified shall be forfeited and
4retained by the Board. For the purposes of this subsection (f),
5an organization gaming licensee that did not conduct live
6racing in 2010 and is located within 3 miles of the Mississippi
7River may reserve up to 900 positions and shall not be
8penalized under this Section for not operating those positions
9until it meets the requirements of subsection (e) of this
10Section, but such licensee shall not request unreserved gaming
11positions under this subsection (f) until its 900 positions are
12all operational.
13    Thereafter, the Board shall publish the number of
14unreserved gaming positions and shall accept requests for
15additional positions from any organization gaming licensee
16that initially reserved all of the positions that were offered.
17The Board shall allocate expeditiously the unreserved gaming
18positions to requesting organization gaming licensees in a
19manner that maximizes revenue to the State. The Board may
20allocate any such unused gaming positions pursuant to an open
21and competitive bidding process, as provided under Section 7.5
22of this Act. This process shall continue until all unreserved
23gaming positions have been purchased. All positions obtained
24pursuant to this process and all positions the organization
25gaming licensee specified it would operate in its application
26must be in operation within 18 months after they were obtained

 

 

10100SB0690ham003- 661 -LRB101 04451 SMS 61572 a

1or the organization gaming licensee forfeits the right to
2operate those positions, but is not entitled to a refund of any
3fees paid. The Board may, after holding a public hearing, grant
4extensions so long as the organization gaming licensee is
5working in good faith to make the positions operational. The
6extension may be for a period of 6 months. If, after the period
7of the extension, the organization gaming licensee has not made
8the positions operational, then another public hearing must be
9held by the Board before it may grant another extension.
10    Unreserved gaming positions retained from and allocated to
11organization gaming licensees by the Board pursuant to this
12subsection (f) shall not be allocated to owners licensees under
13this Act.
14    For the purpose of this subsection (f), the unreserved
15gaming positions for each organization gaming licensee shall be
16the applicable limitation set forth in subsection (e) of this
17Section, less the number of reserved gaming positions by such
18organization gaming licensee, and the total unreserved gaming
19positions shall be the aggregate of the unreserved gaming
20positions for all organization gaming licensees.
21    (g) An organization gaming licensee is authorized to
22conduct the following at a racetrack:
23        (1) slot machine gambling;
24        (2) video game of chance gambling;
25        (3) gambling with electronic gambling games as defined
26    in this Act or defined by the Illinois Gaming Board; and

 

 

10100SB0690ham003- 662 -LRB101 04451 SMS 61572 a

1        (4) table games.
2    (h) Subject to the approval of the Illinois Gaming Board,
3an organization gaming licensee may make modification or
4additions to any existing buildings and structures to comply
5with the requirements of this Act. The Illinois Gaming Board
6shall make its decision after consulting with the Illinois
7Racing Board. In no case, however, shall the Illinois Gaming
8Board approve any modification or addition that alters the
9grounds of the organization licensee such that the act of live
10racing is an ancillary activity to gaming authorized under this
11Section. Gaming authorized under this Section may take place in
12existing structures where inter-track wagering is conducted at
13the racetrack or a facility within 300 yards of the racetrack
14in accordance with the provisions of this Act and the Illinois
15Horse Racing Act of 1975.
16    (i) An organization gaming licensee may conduct gaming at a
17temporary facility pending the construction of a permanent
18facility or the remodeling or relocation of an existing
19facility to accommodate gaming participants for up to 24 months
20after the temporary facility begins to conduct gaming
21authorized under this Section. Upon request by an organization
22gaming licensee and upon a showing of good cause by the
23organization gaming licensee, the Board shall extend the period
24during which the licensee may conduct gaming authorized under
25this Section at a temporary facility by up to 12 months. The
26Board shall make rules concerning the conduct of gaming

 

 

10100SB0690ham003- 663 -LRB101 04451 SMS 61572 a

1authorized under this Section from temporary facilities.
2    The gaming authorized under this Section may take place in
3existing structures where inter-track wagering is conducted at
4the racetrack or a facility within 300 yards of the racetrack
5in accordance with the provisions of this Act and the Illinois
6Horse Racing Act of 1975.
7    (i-5) Under no circumstances shall an organization gaming
8licensee conduct gaming at any State or county fair.
9    (j) The Illinois Gaming Board must adopt emergency rules in
10accordance with Section 5-45 of the Illinois Administrative
11Procedure Act as necessary to ensure compliance with the
12provisions of this amendatory Act of the 101st General Assembly
13concerning the conduct of gaming by an organization gaming
14licensee. The adoption of emergency rules authorized by this
15subsection (j) shall be deemed to be necessary for the public
16interest, safety, and welfare.
17    (k) Each organization gaming licensee who obtains gaming
18positions must make a reconciliation payment 3 years after the
19date the organization gaming licensee begins operating the
20positions in an amount equal to 75% of the difference between
21its adjusted gross receipts from gaming authorized under this
22Section and amounts paid to its purse accounts pursuant to item
23(1) of subsection (b) of Section 56 of the Illinois Horse
24Racing Act of 1975 for the 12-month period for which such
25difference was the largest, minus an amount equal to the
26initial per position fee paid by the organization gaming

 

 

10100SB0690ham003- 664 -LRB101 04451 SMS 61572 a

1licensee. If this calculation results in a negative amount,
2then the organization gaming licensee is not entitled to any
3reimbursement of fees previously paid. This reconciliation
4payment may be made in installments over a period of no more
5than 2 years, subject to Board approval. Any installment
6payments shall include an annual market interest rate as
7determined by the Board.
8    All payments by licensees under this subsection (k) shall
9be deposited into the Rebuild Illinois Projects Fund.
10    (l) As soon as practical after a request is made by the
11Illinois Gaming Board, to minimize duplicate submissions by the
12applicant, the Illinois Racing Board must provide information
13on an applicant for an organization gaming license to the
14Illinois Gaming Board.
 
15    (230 ILCS 10/7.8 new)
16    Sec. 7.8. Home rule. The regulation and licensing of
17organization gaming licensees and gaming conducted pursuant to
18an organization gaming license are exclusive powers and
19functions of the State. A home rule unit may not regulate or
20license such gaming or organization gaming licensees. This
21Section is a denial and limitation of home rule powers and
22functions under subsection (h) of Section 6 of Article VII of
23the Illinois Constitution.
 
24    (230 ILCS 10/7.10 new)

 

 

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1    Sec. 7.10. Diversity program.
2    (a) Each owners licensee, organization gaming licensee,
3and suppliers licensee shall establish and maintain a diversity
4program to ensure non-discrimination in the award and
5administration of contracts. The programs shall establish
6goals of awarding not less than 25% of the annual dollar value
7of all contracts, purchase orders, or other agreements to
8minority-owned businesses and 5% of the annual dollar value of
9all contracts to women-owned businesses.
10    (b) Each owners licensee, organization gaming licensee,
11and suppliers licensee shall establish and maintain a diversity
12program designed to promote equal opportunity for employment.
13The program shall establish hiring goals as the Board and each
14licensee determines appropriate. The Board shall monitor the
15progress of the gaming licensee's progress with respect to the
16program's goals.
17    (c) No later than May 31 of each year, each licensee shall
18report to the Board (1) the number of respective employees and
19the number of its respective employees who have designated
20themselves as members of a minority group and gender and (2)
21the total goals achieved under subsection (a) of this Section
22as a percentage of the total contracts awarded by the license.
23In addition, all licensees shall submit a report with respect
24to the minority-owned and women-owned businesses program
25created in this Section to the Board.
26    (d) When considering whether to re-issue or renew a license

 

 

10100SB0690ham003- 666 -LRB101 04451 SMS 61572 a

1to an owners licensee, organization gaming licensee, or
2suppliers licensee, the Board shall take into account the
3licensee's success in complying with the provisions of this
4Section. If an owners licensee, organization gaming licensee,
5or suppliers licensee has not satisfied the goals contained in
6this Section, the Board shall require a written explanation as
7to why the licensee is not in compliance and shall require the
8licensee to file multi-year metrics designed to achieve
9compliance with the provisions by the next renewal period,
10consistent with State and federal law.
 
11    (230 ILCS 10/7.11 new)
12    Sec. 7.11. Annual report on diversity.
13    (a) Each licensee that receives a license under Sections 7,
147.1, and 7.7 shall execute and file a report with the Board no
15later than December 31 of each year that shall contain, but not
16be limited to, the following information:
17        (i) a good faith affirmative action plan to recruit,
18    train, and upgrade minority persons, women, and persons
19    with a disability in all employment classifications;
20        (ii) the total dollar amount of contracts that were
21    awarded to businesses owned by minority persons, women, and
22    persons with a disability;
23        (iii) the total number of businesses owned by minority
24    persons, women, and persons with a disability that were
25    utilized by the licensee;

 

 

10100SB0690ham003- 667 -LRB101 04451 SMS 61572 a

1        (iv) the utilization of businesses owned by minority
2    persons, women, and persons with disabilities during the
3    preceding year; and
4        (v) the outreach efforts used by the licensee to
5    attract investors and businesses consisting of minority
6    persons, women, and persons with a disability.
7    (b) The Board shall forward a copy of each licensee's
8annual reports to the General Assembly no later than February 1
9of each year. The reports to the General Assembly shall be
10filed with the Clerk of the House of Representatives and the
11Secretary of the Senate in electronic form only, in the manner
12that the Clerk and the Secretary shall direct.
 
13    (230 ILCS 10/7.12 new)
14    Sec. 7.12. Issuance of new owners licenses.
15    (a) Owners licenses newly authorized pursuant to this
16amendatory Act of the 101st General Assembly may be issued by
17the Board to a qualified applicant pursuant to an open and
18competitive bidding process, as set forth in Section 7.5, and
19subject to the maximum number of authorized licenses set forth
20in subsection (e-5) of Section 7 of this Act.
21    (b) To be a qualified applicant, a person or entity may not
22be ineligible to receive an owners license under subsection (a)
23of Section 7 of this Act and must submit an application for an
24owners license that complies with Section 6 of this Act.
25    (c) In determining whether to grant an owners license to an

 

 

10100SB0690ham003- 668 -LRB101 04451 SMS 61572 a

1applicant, the Board shall consider all of the factors set
2forth in subsections (b) and (e-10) of Section 7 of this Act,
3as well as the amount of the applicant's license bid. The Board
4may grant the owners license to an applicant that has not
5submitted the highest license bid, but if it does not select
6the highest bidder, the Board shall issue a written decision
7explaining why another applicant was selected and identifying
8the factors set forth in subsections (b) and (e-10) of Section
97 of this Act that favored the winning bidder.
 
10    (230 ILCS 10/7.13 new)
11    Sec. 7.13. Environmental standards. All permanent
12casinos, riverboats, and organization gaming facilities shall
13consist of buildings that are certified as meeting the U.S.
14Green Building Council's Leadership in Energy and
15Environmental Design standards. The provisions of this Section
16apply to a holder of an owners license or organization gaming
17license that (i) begins operations on or after January 1, 2019
18or (ii) relocates its facilities on or after the effective date
19of this amendatory Act of the 101st General Assembly.
 
20    (230 ILCS 10/7.14 new)
21    Sec. 7.14. Chicago Casino Advisory Committee. An Advisory
22Committee is established to monitor, review, and report on (1)
23the utilization of minority-owned business enterprises and
24women-owned business enterprises by the owners licensee, (2)

 

 

10100SB0690ham003- 669 -LRB101 04451 SMS 61572 a

1employment of women, and (3) employment of minorities with
2regard to the development and construction of the casino as
3authorized under paragraph (1) of subsection (e-5) of Section 7
4of the Illinois Gambling Act. The owners licensee under
5paragraph (1) of subsection (e-5) of Section 7 of the Illinois
6Gambling Act shall work with the Advisory Committee in
7accumulating necessary information for the Advisory Committee
8to submit reports, as necessary, to the General Assembly and to
9the City of Chicago.
10    The Advisory Committee shall consist of 9 members as
11provided in this Section. Five members shall be selected by the
12Governor and 4 members shall be selected by the Mayor of the
13City of Chicago. The Governor and the Mayor of the City of
14Chicago shall each appoint at least one current member of the
15General Assembly. The Advisory Committee shall meet
16periodically and shall report the information to the Mayor of
17the City of Chicago and to the General Assembly by December
1831st of every year.
19    The Advisory Committee shall be dissolved on the date that
20casino gambling operations are first conducted at a permanent
21facility under the license authorized under paragraph (1) of
22subsection (e-5) Section 7 of the Illinois Gambling Act. For
23the purposes of this Section, the terms "woman" and "minority
24person" have the meanings provided in Section 2 of the Business
25Enterprise for Minorities, Women, and Persons with
26Disabilities Act.
 

 

 

10100SB0690ham003- 670 -LRB101 04451 SMS 61572 a

1    (230 ILCS 10/7.15 new)
2    Sec. 7.15. Limitations on gaming at Chicago airports. The
3Chicago casino may conduct gaming operations in an airport
4under the administration or control of the Chicago Department
5of Aviation. Gaming operations may be conducted pursuant to
6this Section so long as: (i) gaming operations are conducted in
7a secured area that is beyond the Transportation Security
8Administration security checkpoints and only available to
9airline passengers at least 21 years of age who are members of
10a private club, and not to the general public, (ii) gaming
11operations are limited to slot machines, as defined in Section
124 of the Illinois Gambling Act, and (iii) the combined number
13of gaming positions operating in the City of Chicago at the
14airports and at the temporary and permanent casino facility
15does not exceed the maximum number of gaming positions
16authorized pursuant to subsection (h) of Section 7 of the
17Illinois Gambling Act. Gaming operations at an airport are
18subject to all applicable laws and rules that apply to any
19other gaming facility under the Illinois Gambling Act.
 
20    (230 ILCS 10/8)  (from Ch. 120, par. 2408)
21    Sec. 8. Suppliers licenses.
22    (a) The Board may issue a suppliers license to such
23persons, firms or corporations which apply therefor upon the
24payment of a non-refundable application fee set by the Board,

 

 

10100SB0690ham003- 671 -LRB101 04451 SMS 61572 a

1upon a determination by the Board that the applicant is
2eligible for a suppliers license and upon payment of a $5,000
3annual license fee.
4    (b) The holder of a suppliers license is authorized to sell
5or lease, and to contract to sell or lease, gambling equipment
6and supplies to any licensee involved in the ownership or
7management of gambling operations.
8    (c) Gambling supplies and equipment may not be distributed
9unless supplies and equipment conform to standards adopted by
10rules of the Board.
11    (d) A person, firm or corporation is ineligible to receive
12a suppliers license if:
13        (1) the person has been convicted of a felony under the
14    laws of this State, any other state, or the United States;
15        (2) the person has been convicted of any violation of
16    Article 28 of the Criminal Code of 1961 or the Criminal
17    Code of 2012, or substantially similar laws of any other
18    jurisdiction;
19        (3) the person has submitted an application for a
20    license under this Act which contains false information;
21        (4) the person is a member of the Board;
22        (5) the entity firm or corporation is one in which a
23    person defined in (1), (2), (3) or (4), is an officer,
24    director or managerial employee;
25        (6) the firm or corporation employs a person who
26    participates in the management or operation of riverboat

 

 

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1    gambling authorized under this Act;
2        (7) the license of the person, firm or corporation
3    issued under this Act, or a license to own or operate
4    gambling facilities in any other jurisdiction, has been
5    revoked.
6    (e) Any person that supplies any equipment, devices, or
7supplies to a licensed riverboat gambling operation must first
8obtain a suppliers license. A supplier shall furnish to the
9Board a list of all equipment, devices and supplies offered for
10sale or lease in connection with gambling games authorized
11under this Act. A supplier shall keep books and records for the
12furnishing of equipment, devices and supplies to gambling
13operations separate and distinct from any other business that
14the supplier might operate. A supplier shall file a quarterly
15return with the Board listing all sales and leases. A supplier
16shall permanently affix its name or a distinctive logo or other
17mark or design element identifying the manufacturer or supplier
18to all its equipment, devices, and supplies, except gaming
19chips without a value impressed, engraved, or imprinted on it,
20for gambling operations. The Board may waive this requirement
21for any specific product or products if it determines that the
22requirement is not necessary to protect the integrity of the
23game. Items purchased from a licensed supplier may continue to
24be used even though the supplier subsequently changes its name,
25distinctive logo, or other mark or design element; undergoes a
26change in ownership; or ceases to be licensed as a supplier for

 

 

10100SB0690ham003- 673 -LRB101 04451 SMS 61572 a

1any reason. Any supplier's equipment, devices or supplies which
2are used by any person in an unauthorized gambling operation
3shall be forfeited to the State. A holder of an owners license
4or an organization gaming license A licensed owner may own its
5own equipment, devices and supplies. Each holder of an owners
6license or an organization gaming license under the Act shall
7file an annual report listing its inventories of gambling
8equipment, devices and supplies.
9    (f) Any person who knowingly makes a false statement on an
10application is guilty of a Class A misdemeanor.
11    (g) Any gambling equipment, devices and supplies provided
12by any licensed supplier may either be repaired on the
13riverboat, in the casino, or at the organization gaming
14facility or removed from the riverboat, casino, or organization
15gaming facility to a an on-shore facility owned by the holder
16of an owners license, organization gaming license, or suppliers
17license for repair.
18(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
1998-756, eff. 7-16-14.)
 
20    (230 ILCS 10/9)  (from Ch. 120, par. 2409)
21    Sec. 9. Occupational licenses.
22    (a) The Board may issue an occupational license to an
23applicant upon the payment of a non-refundable fee set by the
24Board, upon a determination by the Board that the applicant is
25eligible for an occupational license and upon payment of an

 

 

10100SB0690ham003- 674 -LRB101 04451 SMS 61572 a

1annual license fee in an amount to be established. To be
2eligible for an occupational license, an applicant must:
3        (1) be at least 21 years of age if the applicant will
4    perform any function involved in gaming by patrons. Any
5    applicant seeking an occupational license for a non-gaming
6    function shall be at least 18 years of age;
7        (2) not have been convicted of a felony offense, a
8    violation of Article 28 of the Criminal Code of 1961 or the
9    Criminal Code of 2012, or a similar statute of any other
10    jurisdiction;
11        (2.5) not have been convicted of a crime, other than a
12    crime described in item (2) of this subsection (a),
13    involving dishonesty or moral turpitude, except that the
14    Board may, in its discretion, issue an occupational license
15    to a person who has been convicted of a crime described in
16    this item (2.5) more than 10 years prior to his or her
17    application and has not subsequently been convicted of any
18    other crime;
19        (3) have demonstrated a level of skill or knowledge
20    which the Board determines to be necessary in order to
21    operate gambling aboard a riverboat, in a casino, or at an
22    organization gaming facility; and
23        (4) have met standards for the holding of an
24    occupational license as adopted by rules of the Board. Such
25    rules shall provide that any person or entity seeking an
26    occupational license to manage gambling operations under

 

 

10100SB0690ham003- 675 -LRB101 04451 SMS 61572 a

1    this Act hereunder shall be subject to background inquiries
2    and further requirements similar to those required of
3    applicants for an owners license. Furthermore, such rules
4    shall provide that each such entity shall be permitted to
5    manage gambling operations for only one licensed owner.
6    (b) Each application for an occupational license shall be
7on forms prescribed by the Board and shall contain all
8information required by the Board. The applicant shall set
9forth in the application: whether he has been issued prior
10gambling related licenses; whether he has been licensed in any
11other state under any other name, and, if so, such name and his
12age; and whether or not a permit or license issued to him in
13any other state has been suspended, restricted or revoked, and,
14if so, for what period of time.
15    (c) Each applicant shall submit with his application, on
16forms provided by the Board, 2 sets of his fingerprints. The
17Board shall charge each applicant a fee set by the Department
18of State Police to defray the costs associated with the search
19and classification of fingerprints obtained by the Board with
20respect to the applicant's application. These fees shall be
21paid into the State Police Services Fund.
22    (d) The Board may in its discretion refuse an occupational
23license to any person: (1) who is unqualified to perform the
24duties required of such applicant; (2) who fails to disclose or
25states falsely any information called for in the application;
26(3) who has been found guilty of a violation of this Act or

 

 

10100SB0690ham003- 676 -LRB101 04451 SMS 61572 a

1whose prior gambling related license or application therefor
2has been suspended, restricted, revoked or denied for just
3cause in any other state; or (4) for any other just cause.
4    (e) The Board may suspend, revoke or restrict any
5occupational licensee: (1) for violation of any provision of
6this Act; (2) for violation of any of the rules and regulations
7of the Board; (3) for any cause which, if known to the Board,
8would have disqualified the applicant from receiving such
9license; or (4) for default in the payment of any obligation or
10debt due to the State of Illinois; or (5) for any other just
11cause.
12    (f) A person who knowingly makes a false statement on an
13application is guilty of a Class A misdemeanor.
14    (g) Any license issued pursuant to this Section shall be
15valid for a period of one year from the date of issuance.
16    (h) Nothing in this Act shall be interpreted to prohibit a
17licensed owner or organization gaming licensee from entering
18into an agreement with a public community college or a school
19approved under the Private Business and Vocational Schools Act
20of 2012 for the training of any occupational licensee. Any
21training offered by such a school shall be in accordance with a
22written agreement between the licensed owner or organization
23gaming licensee and the school.
24    (i) Any training provided for occupational licensees may be
25conducted either at the site of the gambling facility on the
26riverboat or at a school with which a licensed owner or

 

 

10100SB0690ham003- 677 -LRB101 04451 SMS 61572 a

1organization gaming licensee has entered into an agreement
2pursuant to subsection (h).
3(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
497-1150, eff. 1-25-13.)
 
5    (230 ILCS 10/11)  (from Ch. 120, par. 2411)
6    Sec. 11. Conduct of gambling. Gambling may be conducted by
7licensed owners or licensed managers on behalf of the State
8aboard riverboats. Gambling may be conducted by organization
9gaming licensees at organization gaming facilities. Gambling
10authorized under this Section is , subject to the following
11standards:
12        (1) A licensee may conduct riverboat gambling
13    authorized under this Act regardless of whether it conducts
14    excursion cruises. A licensee may permit the continuous
15    ingress and egress of patrons passengers on a riverboat not
16    used for excursion cruises for the purpose of gambling.
17    Excursion cruises shall not exceed 4 hours for a round
18    trip. However, the Board may grant express approval for an
19    extended cruise on a case-by-case basis.
20        (1.5) An owners licensee may conduct gambling
21    operations authorized under this Act 24 hours a day.
22        (2) (Blank).
23        (3) Minimum and maximum wagers on games shall be set by
24    the licensee.
25        (4) Agents of the Board and the Department of State

 

 

10100SB0690ham003- 678 -LRB101 04451 SMS 61572 a

1    Police may board and inspect any riverboat, enter and
2    inspect any portion of a casino, or enter and inspect any
3    portion of an organization gaming facility at any time for
4    the purpose of determining whether this Act is being
5    complied with. Every riverboat, if under way and being
6    hailed by a law enforcement officer or agent of the Board,
7    must stop immediately and lay to.
8        (5) Employees of the Board shall have the right to be
9    present on the riverboat or in the casino or on adjacent
10    facilities under the control of the licensee and at the
11    organization gaming facility under the control of the
12    organization gaming licensee.
13        (6) Gambling equipment and supplies customarily used
14    in conducting riverboat gambling must be purchased or
15    leased only from suppliers licensed for such purpose under
16    this Act. The Board may approve the transfer, sale, or
17    lease of gambling equipment and supplies by a licensed
18    owner from or to an affiliate of the licensed owner as long
19    as the gambling equipment and supplies were initially
20    acquired from a supplier licensed in Illinois.
21        (7) Persons licensed under this Act shall permit no
22    form of wagering on gambling games except as permitted by
23    this Act.
24        (8) Wagers may be received only from a person present
25    on a licensed riverboat, in a casino, or at an organization
26    gaming facility. No person present on a licensed riverboat,

 

 

10100SB0690ham003- 679 -LRB101 04451 SMS 61572 a

1    in a casino, or at an organization gaming facility shall
2    place or attempt to place a wager on behalf of another
3    person who is not present on the riverboat, in a casino, or
4    at the organization gaming facility.
5        (9) Wagering, including gaming authorized under
6    Section 7.7, shall not be conducted with money or other
7    negotiable currency.
8        (10) A person under age 21 shall not be permitted on an
9    area of a riverboat or casino where gambling is being
10    conducted or at an organization gaming facility where
11    gambling is being conducted, except for a person at least
12    18 years of age who is an employee of the riverboat or
13    casino gambling operation or gaming operation. No employee
14    under age 21 shall perform any function involved in
15    gambling by the patrons. No person under age 21 shall be
16    permitted to make a wager under this Act, and any winnings
17    that are a result of a wager by a person under age 21,
18    whether or not paid by a licensee, shall be treated as
19    winnings for the privilege tax purposes, confiscated, and
20    forfeited to the State and deposited into the Education
21    Assistance Fund.
22        (11) Gambling excursion cruises are permitted only
23    when the waterway for which the riverboat is licensed is
24    navigable, as determined by the Board in consultation with
25    the U.S. Army Corps of Engineers. This paragraph (11) does
26    not limit the ability of a licensee to conduct gambling

 

 

10100SB0690ham003- 680 -LRB101 04451 SMS 61572 a

1    authorized under this Act when gambling excursion cruises
2    are not permitted.
3        (12) All tickets tokens, chips, or electronic cards
4    used to make wagers must be purchased (i) from a licensed
5    owner or manager, in the case of a riverboat, either aboard
6    a riverboat or at an onshore facility which has been
7    approved by the Board and which is located where the
8    riverboat docks, (ii) in the case of a casino, from a
9    licensed owner at the casino, or (iii) from an organization
10    gaming licensee at the organization gaming facility. The
11    tickets tokens, chips, or electronic cards may be purchased
12    by means of an agreement under which the owner or manager
13    extends credit to the patron. Such tickets tokens, chips,
14    or electronic cards may be used while aboard the riverboat,
15    in the casino, or at the organization gaming facility only
16    for the purpose of making wagers on gambling games.
17        (13) Notwithstanding any other Section of this Act, in
18    addition to the other licenses authorized under this Act,
19    the Board may issue special event licenses allowing persons
20    who are not otherwise licensed to conduct riverboat
21    gambling to conduct such gambling on a specified date or
22    series of dates. Riverboat gambling under such a license
23    may take place on a riverboat not normally used for
24    riverboat gambling. The Board shall establish standards,
25    fees and fines for, and limitations upon, such licenses,
26    which may differ from the standards, fees, fines and

 

 

10100SB0690ham003- 681 -LRB101 04451 SMS 61572 a

1    limitations otherwise applicable under this Act. All such
2    fees shall be deposited into the State Gaming Fund. All
3    such fines shall be deposited into the Education Assistance
4    Fund, created by Public Act 86-0018, of the State of
5    Illinois.
6        (14) In addition to the above, gambling must be
7    conducted in accordance with all rules adopted by the
8    Board.
9(Source: P.A. 96-1392, eff. 1-1-11.)
 
10    (230 ILCS 10/11.1)  (from Ch. 120, par. 2411.1)
11    Sec. 11.1. Collection of amounts owing under credit
12agreements. Notwithstanding any applicable statutory provision
13to the contrary, a licensed owner, licensed or manager, or
14organization gaming licensee who extends credit to a riverboat
15gambling patron pursuant to paragraph (12) of Section 11
16Section 11 (a) (12) of this Act is expressly authorized to
17institute a cause of action to collect any amounts due and
18owing under the extension of credit, as well as the licensed
19owner's, licensed or manager's, or organization gaming
20licensee's costs, expenses and reasonable attorney's fees
21incurred in collection.
22(Source: P.A. 93-28, eff. 6-20-03.)
 
23    (230 ILCS 10/12)  (from Ch. 120, par. 2412)
24    Sec. 12. Admission tax; fees.

 

 

10100SB0690ham003- 682 -LRB101 04451 SMS 61572 a

1    (a) A tax is hereby imposed upon admissions to riverboat
2and casino gambling facilities riverboats operated by licensed
3owners authorized pursuant to this Act. Until July 1, 2002, the
4rate is $2 per person admitted. From July 1, 2002 until July 1,
52003, the rate is $3 per person admitted. From July 1, 2003
6until August 23, 2005 (the effective date of Public Act
794-673), for a licensee that admitted 1,000,000 persons or
8fewer in the previous calendar year, the rate is $3 per person
9admitted; for a licensee that admitted more than 1,000,000 but
10no more than 2,300,000 persons in the previous calendar year,
11the rate is $4 per person admitted; and for a licensee that
12admitted more than 2,300,000 persons in the previous calendar
13year, the rate is $5 per person admitted. Beginning on August
1423, 2005 (the effective date of Public Act 94-673), for a
15licensee that admitted 1,000,000 persons or fewer in calendar
16year 2004, the rate is $2 per person admitted, and for all
17other licensees, including licensees that were not conducting
18gambling operations in 2004, the rate is $3 per person
19admitted. This admission tax is imposed upon the licensed owner
20conducting gambling.
21        (1) The admission tax shall be paid for each admission,
22    except that a person who exits a riverboat gambling
23    facility and reenters that riverboat gambling facility
24    within the same gaming day shall be subject only to the
25    initial admission tax.
26        (2) (Blank).

 

 

10100SB0690ham003- 683 -LRB101 04451 SMS 61572 a

1        (3) The riverboat licensee may issue tax-free passes to
2    actual and necessary officials and employees of the
3    licensee or other persons actually working on the
4    riverboat.
5        (4) The number and issuance of tax-free passes is
6    subject to the rules of the Board, and a list of all
7    persons to whom the tax-free passes are issued shall be
8    filed with the Board.
9    (a-5) A fee is hereby imposed upon admissions operated by
10licensed managers on behalf of the State pursuant to Section
117.3 at the rates provided in this subsection (a-5). For a
12licensee that admitted 1,000,000 persons or fewer in the
13previous calendar year, the rate is $3 per person admitted; for
14a licensee that admitted more than 1,000,000 but no more than
152,300,000 persons in the previous calendar year, the rate is $4
16per person admitted; and for a licensee that admitted more than
172,300,000 persons in the previous calendar year, the rate is $5
18per person admitted.
19        (1) The admission fee shall be paid for each admission.
20        (2) (Blank).
21        (3) The licensed manager may issue fee-free passes to
22    actual and necessary officials and employees of the manager
23    or other persons actually working on the riverboat.
24        (4) The number and issuance of fee-free passes is
25    subject to the rules of the Board, and a list of all
26    persons to whom the fee-free passes are issued shall be

 

 

10100SB0690ham003- 684 -LRB101 04451 SMS 61572 a

1    filed with the Board.
2    (b) Except as provided in subsection (b-5), from From the
3tax imposed under subsection (a) and the fee imposed under
4subsection (a-5), a municipality shall receive from the State
5$1 for each person embarking on a riverboat docked within the
6municipality or entering a casino located within the
7municipality, and a county shall receive $1 for each person
8entering a casino or embarking on a riverboat docked within the
9county but outside the boundaries of any municipality. The
10municipality's or county's share shall be collected by the
11Board on behalf of the State and remitted quarterly by the
12State, subject to appropriation, to the treasurer of the unit
13of local government for deposit in the general fund.
14    (b-5) From the tax imposed under subsection (a) and the fee
15imposed under subsection (a-5), $1 for each person embarking on
16a riverboat designated in paragraph (4) of subsection (e-5) of
17Section 7 shall be divided as follows: $0.70 to the City of
18Rockford, $0.05 to the City of Loves Park, $0.05 to the Village
19of Machesney Park, and $0.20 to Winnebago County.
20    The municipality's or county's share shall be collected by
21the Board on behalf of the State and remitted monthly by the
22State, subject to appropriation, to the treasurer of the unit
23of local government for deposit in the general fund.
24    (b-10) From the tax imposed under subsection (a) and the
25fee imposed under subsection (a-5), $1 for each person
26embarking on a riverboat or entering a casino designated in

 

 

10100SB0690ham003- 685 -LRB101 04451 SMS 61572 a

1paragraph (1) of subsection (e-5) of Section 7 shall be divided
2as follows: $0.70 to the City of Chicago, $0.15 to the Village
3of Maywood, and $0.15 to the Village of Summit.
4    The municipality's or county's share shall be collected by
5the Board on behalf of the State and remitted monthly by the
6State, subject to appropriation, to the treasurer of the unit
7of local government for deposit in the general fund.
8    (b-15) From the tax imposed under subsection (a) and the
9fee imposed under subsection (a-5), $1 for each person
10embarking on a riverboat or entering a casino designated in
11paragraph (2) of subsection (e-5) of Section 7 shall be divided
12as follows: $0.70 to the City of Danville and $0.30 to
13Vermilion County.
14    The municipality's or county's share shall be collected by
15the Board on behalf of the State and remitted monthly by the
16State, subject to appropriation, to the treasurer of the unit
17of local government for deposit in the general fund.
18    (c) The licensed owner shall pay the entire admission tax
19to the Board and the licensed manager shall pay the entire
20admission fee to the Board. Such payments shall be made daily.
21Accompanying each payment shall be a return on forms provided
22by the Board which shall include other information regarding
23admissions as the Board may require. Failure to submit either
24the payment or the return within the specified time may result
25in suspension or revocation of the owners or managers license.
26    (c-5) A tax is imposed on admissions to organization gaming

 

 

10100SB0690ham003- 686 -LRB101 04451 SMS 61572 a

1facilities at the rate of $3 per person admitted by an
2organization gaming licensee. The tax is imposed upon the
3organization gaming licensee.
4        (1) The admission tax shall be paid for each admission,
5    except that a person who exits an organization gaming
6    facility and reenters that organization gaming facility
7    within the same gaming day, as the term "gaming day" is
8    defined by the Board by rule, shall be subject only to the
9    initial admission tax. The Board shall establish, by rule,
10    a procedure to determine whether a person admitted to an
11    organization gaming facility has paid the admission tax.
12        (2) An organization gaming licensee may issue tax-free
13    passes to actual and necessary officials and employees of
14    the licensee and other persons associated with its gaming
15    operations.
16        (3) The number and issuance of tax-free passes is
17    subject to the rules of the Board, and a list of all
18    persons to whom the tax-free passes are issued shall be
19    filed with the Board.
20        (4) The organization gaming licensee shall pay the
21    entire admission tax to the Board.
22    Such payments shall be made daily. Accompanying each
23payment shall be a return on forms provided by the Board, which
24shall include other information regarding admission as the
25Board may require. Failure to submit either the payment or the
26return within the specified time may result in suspension or

 

 

10100SB0690ham003- 687 -LRB101 04451 SMS 61572 a

1revocation of the organization gaming license.
2    From the tax imposed under this subsection (c-5), a
3municipality other than the Village of Stickney or the City of
4Collinsville in which an organization gaming facility is
5located, or if the organization gaming facility is not located
6within a municipality, then the county in which the
7organization gaming facility is located, except as otherwise
8provided in this Section, shall receive, subject to
9appropriation, $1 for each person who enters the organization
10gaming facility. For each admission to the organization gaming
11facility in excess of 1,500,000 in a year, from the tax imposed
12under this subsection (c-5), the county in which the
13organization gaming facility is located shall receive, subject
14to appropriation, $0.30, which shall be in addition to any
15other moneys paid to the county under this Section.
16    From the tax imposed under this subsection (c-5) on an
17organization gaming facility located in the Village of
18Stickney, $1 for each person who enters the organization gaming
19facility shall be distributed as follows, subject to
20appropriation: $0.24 to the Village of Stickney, $0.49 to the
21Town of Cicero, $0.05 to the City of Berwyn, and $0.17 to the
22Stickney Public Health District, and $0.05 to the City of
23Bridgeview.
24    From the tax imposed under this subsection (c-5) on an
25organization gaming facility located in the City of
26Collinsville, the following shall each receive 10 cents for

 

 

10100SB0690ham003- 688 -LRB101 04451 SMS 61572 a

1each person who enters the organization gaming facility,
2subject to appropriation: the Village of Alorton; the Village
3of Washington Park; State Park Place; the Village of Fairmont
4City; the City of Centreville; the Village of Brooklyn; the
5City of Venice; the City of Madison; the Village of Caseyville;
6and the Village of Pontoon Beach.
7    On the 25th day of each month, all amounts remaining after
8payments required under this subsection (c-5) have been made
9shall be transferred into the Capital Projects Fund.
10    (d) The Board shall administer and collect the admission
11tax imposed by this Section, to the extent practicable, in a
12manner consistent with the provisions of Sections 4, 5, 5a, 5b,
135c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
14Retailers' Occupation Tax Act and Section 3-7 of the Uniform
15Penalty and Interest Act.
16(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
 
17    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
18    Sec. 13. Wagering tax; rate; distribution.
19    (a) Until January 1, 1998, a tax is imposed on the adjusted
20gross receipts received from gambling games authorized under
21this Act at the rate of 20%.
22    (a-1) From January 1, 1998 until July 1, 2002, a privilege
23tax is imposed on persons engaged in the business of conducting
24riverboat gambling operations, based on the adjusted gross
25receipts received by a licensed owner from gambling games

 

 

10100SB0690ham003- 689 -LRB101 04451 SMS 61572 a

1authorized under this Act at the following rates:
2        15% of annual adjusted gross receipts up to and
3    including $25,000,000;
4        20% of annual adjusted gross receipts in excess of
5    $25,000,000 but not exceeding $50,000,000;
6        25% of annual adjusted gross receipts in excess of
7    $50,000,000 but not exceeding $75,000,000;
8        30% of annual adjusted gross receipts in excess of
9    $75,000,000 but not exceeding $100,000,000;
10        35% of annual adjusted gross receipts in excess of
11    $100,000,000.
12    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
13is imposed on persons engaged in the business of conducting
14riverboat gambling operations, other than licensed managers
15conducting riverboat gambling operations on behalf of the
16State, based on the adjusted gross receipts received by a
17licensed owner from gambling games authorized under this Act at
18the following rates:
19        15% of annual adjusted gross receipts up to and
20    including $25,000,000;
21        22.5% of annual adjusted gross receipts in excess of
22    $25,000,000 but not exceeding $50,000,000;
23        27.5% of annual adjusted gross receipts in excess of
24    $50,000,000 but not exceeding $75,000,000;
25        32.5% of annual adjusted gross receipts in excess of
26    $75,000,000 but not exceeding $100,000,000;

 

 

10100SB0690ham003- 690 -LRB101 04451 SMS 61572 a

1        37.5% of annual adjusted gross receipts in excess of
2    $100,000,000 but not exceeding $150,000,000;
3        45% of annual adjusted gross receipts in excess of
4    $150,000,000 but not exceeding $200,000,000;
5        50% of annual adjusted gross receipts in excess of
6    $200,000,000.
7    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
8persons engaged in the business of conducting riverboat
9gambling operations, other than licensed managers conducting
10riverboat gambling operations on behalf of the State, based on
11the adjusted gross receipts received by a licensed owner from
12gambling games authorized under this Act at the following
13rates:
14        15% of annual adjusted gross receipts up to and
15    including $25,000,000;
16        27.5% of annual adjusted gross receipts in excess of
17    $25,000,000 but not exceeding $37,500,000;
18        32.5% of annual adjusted gross receipts in excess of
19    $37,500,000 but not exceeding $50,000,000;
20        37.5% of annual adjusted gross receipts in excess of
21    $50,000,000 but not exceeding $75,000,000;
22        45% of annual adjusted gross receipts in excess of
23    $75,000,000 but not exceeding $100,000,000;
24        50% of annual adjusted gross receipts in excess of
25    $100,000,000 but not exceeding $250,000,000;
26        70% of annual adjusted gross receipts in excess of

 

 

10100SB0690ham003- 691 -LRB101 04451 SMS 61572 a

1    $250,000,000.
2    An amount equal to the amount of wagering taxes collected
3under this subsection (a-3) that are in addition to the amount
4of wagering taxes that would have been collected if the
5wagering tax rates under subsection (a-2) were in effect shall
6be paid into the Common School Fund.
7    The privilege tax imposed under this subsection (a-3) shall
8no longer be imposed beginning on the earlier of (i) July 1,
92005; (ii) the first date after June 20, 2003 that riverboat
10gambling operations are conducted pursuant to a dormant
11license; or (iii) the first day that riverboat gambling
12operations are conducted under the authority of an owners
13license that is in addition to the 10 owners licenses initially
14authorized under this Act. For the purposes of this subsection
15(a-3), the term "dormant license" means an owners license that
16is authorized by this Act under which no riverboat gambling
17operations are being conducted on June 20, 2003.
18    (a-4) Beginning on the first day on which the tax imposed
19under subsection (a-3) is no longer imposed and ending upon the
20imposition of the privilege tax under subsection (a-5) of this
21Section, a privilege tax is imposed on persons engaged in the
22business of conducting riverboat gambling operations, other
23than licensed managers conducting riverboat gambling
24operations on behalf of the State, based on the adjusted gross
25receipts received by a licensed owner from gambling games
26authorized under this Act at the following rates:

 

 

10100SB0690ham003- 692 -LRB101 04451 SMS 61572 a

1        15% of annual adjusted gross receipts up to and
2    including $25,000,000;
3        22.5% of annual adjusted gross receipts in excess of
4    $25,000,000 but not exceeding $50,000,000;
5        27.5% of annual adjusted gross receipts in excess of
6    $50,000,000 but not exceeding $75,000,000;
7        32.5% of annual adjusted gross receipts in excess of
8    $75,000,000 but not exceeding $100,000,000;
9        37.5% of annual adjusted gross receipts in excess of
10    $100,000,000 but not exceeding $150,000,000;
11        45% of annual adjusted gross receipts in excess of
12    $150,000,000 but not exceeding $200,000,000;
13        50% of annual adjusted gross receipts in excess of
14    $200,000,000.
15    For the imposition of the privilege tax in this subsection
16(a-4), amounts paid pursuant to item (1) of subsection (b) of
17Section 56 of the Illinois Horse Racing Act of 1975 shall not
18be included in the determination of adjusted gross receipts.
19    (a-5) Beginning on the first day that an owners licensee
20under paragraph (1), (2), (3), (4), (5), or (6) of subsection
21(e-5) of Section 7 conducts gambling operations, either in a
22temporary facility or a permanent facility, a privilege tax is
23imposed on persons engaged in the business of conducting
24gambling operations, other than licensed managers conducting
25riverboat gambling operations on behalf of the State, based on
26the adjusted gross receipts received by such licensee from the

 

 

10100SB0690ham003- 693 -LRB101 04451 SMS 61572 a

1gambling games authorized under this Act. The privilege tax for
2all gambling games other than table games, including, but not
3limited to, slot machines, video game of chance gambling, and
4electronic gambling games shall be at the following rates:
5        15% of annual adjusted gross receipts up to and
6    including $25,000,000;
7        22.5% of annual adjusted gross receipts in excess of
8    $25,000,000 but not exceeding $50,000,000;
9        27.5% of annual adjusted gross receipts in excess of
10    $50,000,000 but not exceeding $75,000,000;
11        32.5% of annual adjusted gross receipts in excess of
12    $75,000,000 but not exceeding $100,000,000;
13        37.5% of annual adjusted gross receipts in excess of
14    $100,000,000 but not exceeding $150,000,000;
15        45% of annual adjusted gross receipts in excess of
16    $150,000,000 but not exceeding $200,000,000;
17        50% of annual adjusted gross receipts in excess of
18    $200,000,000.
19    The privilege tax for table games shall be at the following
20rates:
21        15% of annual adjusted gross receipts up to and
22    including $25,000,000;
23        20% of annual adjusted gross receipts in excess of
24    $25,000,000.
25    For the imposition of the privilege tax in this subsection
26(a-5), amounts paid pursuant to item (1) of subsection (b) of

 

 

10100SB0690ham003- 694 -LRB101 04451 SMS 61572 a

1Section 56 of the Illinois Horse Racing Act of 1975 shall not
2be included in the determination of adjusted gross receipts.
3    Notwithstanding the provisions of this subsection (a-5),
4for the first 10 years that the privilege tax is imposed under
5this subsection (a-5), the privilege tax shall be imposed on
6the modified annual adjusted gross receipts of a riverboat or
7casino conducting gambling operations in the City of East St.
8Louis, unless:
9        (1) the riverboat or casino fails to employ at least
10    450 people;
11        (2) the riverboat or casino fails to maintain
12    operations in a manner consistent with this Act or is not a
13    viable riverboat or casino subject to the approval of the
14    Board; or
15        (3) the owners licensee is not an entity in which
16    employees participate in an employee stock ownership plan.
17    As used in this subsection (a-5), "modified annual adjusted
18gross receipts" means:
19        (A) for calendar year 2020, the annual adjusted gross
20    receipts for the current year minus the difference between
21    an amount equal to the average annual adjusted gross
22    receipts from a riverboat or casino conducting gambling
23    operations in the City of East St. Louis for 2014, 2015,
24    2016, 2017, and 2018 and the annual adjusted gross receipts
25    for 2018;
26        (B) for calendar year 2021, the annual adjusted gross

 

 

10100SB0690ham003- 695 -LRB101 04451 SMS 61572 a

1    receipts for the current year minus the difference between
2    an amount equal to the average annual adjusted gross
3    receipts from a riverboat or casino conducting gambling
4    operations in the City of East St. Louis for 2014, 2015,
5    2016, 2017, and 2018 and the annual adjusted gross receipts
6    for 2019; and
7        (C) for calendar years 2022 through 2029, the annual
8    adjusted gross receipts for the current year minus the
9    difference between an amount equal to the average annual
10    adjusted gross receipts from a riverboat or casino
11    conducting gambling operations in the City of East St.
12    Louis for 3 years preceding the current year and the annual
13    adjusted gross receipts for the immediately preceding
14    year.
15    (a-5.5) In addition to the privilege tax imposed under
16subsection (a-5), a privilege tax is imposed on the owners
17licensee under paragraph (1) of subsection (e-5) of Section 7
18at the rate of one-third of the owners licensee's adjusted
19gross receipts.
20    For the imposition of the privilege tax in this subsection
21(a-5.5), amounts paid pursuant to item (1) of subsection (b) of
22Section 56 of the Illinois Horse Racing Act of 1975 shall not
23be included in the determination of adjusted gross receipts.
24    (a-6) From the effective date of this amendatory Act of the
25101st General Assembly until June 30, 2023, an owners licensee
26that conducted gambling operations prior to January 1, 2011

 

 

10100SB0690ham003- 696 -LRB101 04451 SMS 61572 a

1shall receive a dollar-for-dollar credit against the tax
2imposed under this Section for any renovation or construction
3costs paid by the owners licensee, but in no event shall the
4credit exceed $2,000,000.
5    Additionally, from the effective date of this amendatory
6Act of the 101st General Assembly until December 31, 2022, an
7owners licensee that (i) is located within 15 miles of the
8Missouri border, and (ii) has at least 3 riverboats, casinos,
9or their equivalent within a 45-mile radius, may be authorized
10to relocate to a new location with the approval of both the
11unit of local government designated as the home dock and the
12Board, so long as the new location is within the same unit of
13local government and no more than 3 miles away from its
14original location. Such owners licensee shall receive a credit
15against the tax imposed under this Section equal to 8% of the
16total project costs, as approved by the Board, for any
17renovation or construction costs paid by the owners licensee
18for the construction of the new facility, provided that the new
19facility is operational by July 1, 2022. In determining whether
20or not to approve a relocation, the Board must consider the
21extent to which the relocation will diminish the gaming
22revenues received by other Illinois gaming facilities.
23    (a-7) Beginning in the initial adjustment year and through
24the final adjustment year, if the total obligation imposed
25pursuant to either subsection (a-5) or (a-6) will result in an
26owners licensee receiving less after-tax adjusted gross

 

 

10100SB0690ham003- 697 -LRB101 04451 SMS 61572 a

1receipts than it received in calendar year 2018, then the total
2amount of privilege taxes that the owners licensee is required
3to pay for that calendar year shall be reduced to the extent
4necessary so that the after-tax adjusted gross receipts in that
5calendar year equals the after-tax adjusted gross receipts in
6calendar year 2018, but the privilege tax reduction shall not
7exceed the annual adjustment cap. If pursuant to this
8subsection (a-7), the total obligation imposed pursuant to
9either subsection (a-5) or (a-6) shall be reduced, then the
10owners licensee shall not receive a refund from the State at
11the end of the subject calendar year but instead shall be able
12to apply that amount as a credit against any payments it owes
13to the State in the following calendar year to satisfy its
14total obligation under either subsection (a-5) or (a-6). The
15credit for the final adjustment year shall occur in the
16calendar year following the final adjustment year.
17    If an owners licensee that conducted gambling operations
18prior to January 1, 2019 expands its riverboat or casino,
19including, but not limited to, with respect to its gaming
20floor, additional non-gaming amenities such as restaurants,
21bars, and hotels and other additional facilities, and incurs
22construction and other costs related to such expansion from the
23effective date of this amendatory Act of the 101st General
24Assembly until the 5th anniversary of the effective date of
25this amendatory Act of the 101st General Assembly, then for
26each $15,000,000 spent for any such construction or other costs

 

 

10100SB0690ham003- 698 -LRB101 04451 SMS 61572 a

1related to expansion paid by the owners licensee, the final
2adjustment year shall be extended by one year and the annual
3adjustment cap shall increase by 0.2% of adjusted gross
4receipts during each calendar year until and including the
5final adjustment year. No further modifications to the final
6adjustment year or annual adjustment cap shall be made after
7$75,000,000 is incurred in construction or other costs related
8to expansion so that the final adjustment year shall not extend
9beyond the 9th calendar year after the initial adjustment year,
10not including the initial adjustment year, and the annual
11adjustment cap shall not exceed 4% of adjusted gross receipts
12in a particular calendar year. Construction and other costs
13related to expansion shall include all project related costs,
14including, but not limited to, all hard and soft costs,
15financing costs, on or off-site ground, road or utility work,
16cost of gaming equipment and all other personal property,
17initial fees assessed for each incremental gaming position, and
18the cost of incremental land acquired for such expansion. Soft
19costs shall include, but not be limited to, legal fees,
20architect, engineering and design costs, other consultant
21costs, insurance cost, permitting costs, and pre-opening costs
22related to the expansion, including, but not limited to, any of
23the following: marketing, real estate taxes, personnel,
24training, travel and out-of-pocket expenses, supply,
25inventory, and other costs, and any other project related soft
26costs.

 

 

10100SB0690ham003- 699 -LRB101 04451 SMS 61572 a

1    To be eligible for the tax credits in subsection (a-6), all
2construction contracts shall include a requirement that the
3contractor enter into a project labor agreement with the
4building and construction trades council with geographic
5jurisdiction of the location of the proposed gaming facility.
6    Notwithstanding any other provision of this subsection
7(a-7), this subsection (a-7) does not apply to an owners
8licensee unless such owners licensee spends at least
9$15,000,000 on construction and other costs related to its
10expansion, excluding the initial fees assessed for each
11incremental gaming position.
12    This subsection (a-7) does not apply to owners licensees
13authorized pursuant to subsection (e-5) of Section 7 of this
14Act.
15    For purposes of this subsection (a-7):
16    "Building and construction trades council" means any
17organization representing multiple construction entities that
18are monitoring or attentive to compliance with public or
19workers' safety laws, wage and hour requirements, or other
20statutory requirements or that are making or maintaining
21collective bargaining agreements.
22    "Initial adjustment year" means the year commencing on
23January 1 of the calendar year immediately following the
24earlier of the following:
25        (1) the commencement of gambling operations, either in
26    a temporary or permanent facility, with respect to the

 

 

10100SB0690ham003- 700 -LRB101 04451 SMS 61572 a

1    owners license authorized under paragraph (1) of
2    subsection (e-5) of Section 7 of this Act; or
3        (2) 24 months after the effective date of this
4    amendatory Act of the 101st General Assembly, provided the
5    initial adjustment year shall not commence earlier than 12
6    months after the effective date of this amendatory Act of
7    the 101st General Assembly.
8    "Final adjustment year" means the 2nd calendar year after
9the initial adjustment year, not including the initial
10adjustment year, and as may be extended further as described in
11this subsection (a-7).
12    "Annual adjustment cap" means 3% of adjusted gross receipts
13in a particular calendar year, and as may be increased further
14as otherwise described in this subsection (a-7).
15    (a-8) Riverboat gambling operations conducted by a
16licensed manager on behalf of the State are not subject to the
17tax imposed under this Section.
18    (a-9) Beginning on January 1, 2020, the calculation of
19gross receipts or adjusted gross receipts, for the purposes of
20this Section, for a riverboat, a casino, or an organization
21gaming facility shall not include the dollar amount of
22non-cashable vouchers, coupons, and electronic promotions
23redeemed by wagerers upon the riverboat, in the casino, or in
24the organization gaming facility up to and including an amount
25not to exceed 20% of a riverboat's, a casino's, or an
26organization gaming facility's adjusted gross receipts.

 

 

10100SB0690ham003- 701 -LRB101 04451 SMS 61572 a

1    The Illinois Gaming Board shall submit to the General
2Assembly a comprehensive report no later than March 31, 2023
3detailing, at a minimum, the effect of removing non-cashable
4vouchers, coupons, and electronic promotions from this
5calculation on net gaming revenues to the State in calendar
6years 2020 through 2022, the increase or reduction in wagerers
7as a result of removing non-cashable vouchers, coupons, and
8electronic promotions from this calculation, the effect of the
9tax rates in subsection (a-5) on net gaming revenues to this
10State, and proposed modifications to the calculation.
11    (a-10) The taxes imposed by this Section shall be paid by
12the licensed owner or the organization gaming licensee to the
13Board not later than 5:00 o'clock p.m. of the day after the day
14when the wagers were made.
15    (a-15) If the privilege tax imposed under subsection (a-3)
16is no longer imposed pursuant to item (i) of the last paragraph
17of subsection (a-3), then by June 15 of each year, each owners
18licensee, other than an owners licensee that admitted 1,000,000
19persons or fewer in calendar year 2004, must, in addition to
20the payment of all amounts otherwise due under this Section,
21pay to the Board a reconciliation payment in the amount, if
22any, by which the licensed owner's base amount exceeds the
23amount of net privilege tax paid by the licensed owner to the
24Board in the then current State fiscal year. A licensed owner's
25net privilege tax obligation due for the balance of the State
26fiscal year shall be reduced up to the total of the amount paid

 

 

10100SB0690ham003- 702 -LRB101 04451 SMS 61572 a

1by the licensed owner in its June 15 reconciliation payment.
2The obligation imposed by this subsection (a-15) is binding on
3any person, firm, corporation, or other entity that acquires an
4ownership interest in any such owners license. The obligation
5imposed under this subsection (a-15) terminates on the earliest
6of: (i) July 1, 2007, (ii) the first day after the effective
7date of this amendatory Act of the 94th General Assembly that
8riverboat gambling operations are conducted pursuant to a
9dormant license, (iii) the first day that riverboat gambling
10operations are conducted under the authority of an owners
11license that is in addition to the 10 owners licenses initially
12authorized under this Act, or (iv) the first day that a
13licensee under the Illinois Horse Racing Act of 1975 conducts
14gaming operations with slot machines or other electronic gaming
15devices. The Board must reduce the obligation imposed under
16this subsection (a-15) by an amount the Board deems reasonable
17for any of the following reasons: (A) an act or acts of God,
18(B) an act of bioterrorism or terrorism or a bioterrorism or
19terrorism threat that was investigated by a law enforcement
20agency, or (C) a condition beyond the control of the owners
21licensee that does not result from any act or omission by the
22owners licensee or any of its agents and that poses a hazardous
23threat to the health and safety of patrons. If an owners
24licensee pays an amount in excess of its liability under this
25Section, the Board shall apply the overpayment to future
26payments required under this Section.

 

 

10100SB0690ham003- 703 -LRB101 04451 SMS 61572 a

1    For purposes of this subsection (a-15):
2    "Act of God" means an incident caused by the operation of
3an extraordinary force that cannot be foreseen, that cannot be
4avoided by the exercise of due care, and for which no person
5can be held liable.
6    "Base amount" means the following:
7        For a riverboat in Alton, $31,000,000.
8        For a riverboat in East Peoria, $43,000,000.
9        For the Empress riverboat in Joliet, $86,000,000.
10        For a riverboat in Metropolis, $45,000,000.
11        For the Harrah's riverboat in Joliet, $114,000,000.
12        For a riverboat in Aurora, $86,000,000.
13        For a riverboat in East St. Louis, $48,500,000.
14        For a riverboat in Elgin, $198,000,000.
15    "Dormant license" has the meaning ascribed to it in
16subsection (a-3).
17    "Net privilege tax" means all privilege taxes paid by a
18licensed owner to the Board under this Section, less all
19payments made from the State Gaming Fund pursuant to subsection
20(b) of this Section.
21    The changes made to this subsection (a-15) by Public Act
2294-839 are intended to restate and clarify the intent of Public
23Act 94-673 with respect to the amount of the payments required
24to be made under this subsection by an owners licensee to the
25Board.
26    (b) From Until January 1, 1998, 25% of the tax revenue

 

 

10100SB0690ham003- 704 -LRB101 04451 SMS 61572 a

1deposited in the State Gaming Fund under this Section shall be
2paid, subject to appropriation by the General Assembly, to the
3unit of local government which is designated as the home dock
4of the riverboat. Beginning January 1, 1998, from the tax
5revenue from riverboat or casino gambling deposited in the
6State Gaming Fund under this Section, an amount equal to 5% of
7adjusted gross receipts generated by a riverboat or a casino,
8other than a riverboat or casino designated in paragraph (1),
9(3), or (4) of subsection (e-5) of Section 7, shall be paid
10monthly, subject to appropriation by the General Assembly, to
11the unit of local government in which the casino is located or
12that is designated as the home dock of the riverboat.
13Notwithstanding anything to the contrary, beginning on the
14first day that an owners licensee under paragraph (1), (2),
15(3), (4), (5), or (6) of subsection (e-5) of Section 7 conducts
16gambling operations, either in a temporary facility or a
17permanent facility, and for 2 years thereafter, a unit of local
18government designated as the home dock of a riverboat whose
19license was issued before January 1, 2019, other than a
20riverboat conducting gambling operations in the City of East
21St. Louis, shall not receive less under this subsection (b)
22than the amount the unit of local government received under
23this subsection (b) in calendar year 2018. Notwithstanding
24anything to the contrary and because the City of East St. Louis
25is a financially distressed city, beginning on the first day
26that an owners licensee under paragraph (1), (2), (3), (4),

 

 

10100SB0690ham003- 705 -LRB101 04451 SMS 61572 a

1(5), or (6) of subsection (e-5) of Section 7 conducts gambling
2operations, either in a temporary facility or a permanent
3facility, and for 10 years thereafter, a unit of local
4government designated as the home dock of a riverboat
5conducting gambling operations in the City of East St. Louis
6shall not receive less under this subsection (b) than the
7amount the unit of local government received under this
8subsection (b) in calendar year 2018.
9    From the tax revenue deposited in the State Gaming Fund
10pursuant to riverboat or casino gambling operations conducted
11by a licensed manager on behalf of the State, an amount equal
12to 5% of adjusted gross receipts generated pursuant to those
13riverboat or casino gambling operations shall be paid monthly,
14subject to appropriation by the General Assembly, to the unit
15of local government that is designated as the home dock of the
16riverboat upon which those riverboat gambling operations are
17conducted or in which the casino is located.
18    From the tax revenue from riverboat or casino gambling
19deposited in the State Gaming Fund under this Section, an
20amount equal to 5% of the adjusted gross receipts generated by
21a riverboat designated in paragraph (3) of subsection (e-5) of
22Section 7 shall be divided and remitted monthly, subject to
23appropriation, as follows: 70% to Waukegan, 10% to Park City,
2415% to North Chicago, and 5% to Lake County.
25    From the tax revenue from riverboat or casino gambling
26deposited in the State Gaming Fund under this Section, an

 

 

10100SB0690ham003- 706 -LRB101 04451 SMS 61572 a

1amount equal to 5% of the adjusted gross receipts generated by
2a riverboat designated in paragraph (4) of subsection (e-5) of
3Section 7 shall be remitted monthly, subject to appropriation,
4as follows: 70% to the City of Rockford, 5% to the City of
5Loves Park, 5% to the Village of Machesney, and 20% to
6Winnebago County.
7    From the tax revenue from riverboat or casino gambling
8deposited in the State Gaming Fund under this Section, an
9amount equal to 5% of the adjusted gross receipts generated by
10a riverboat designated in paragraph (5) of subsection (e-5) of
11Section 7 shall be remitted monthly, subject to appropriation,
12as follows: 2% to the unit of local government in which the
13riverboat or casino is located, and 3% shall be distributed:
14(A) in accordance with a regional capital development plan
15entered into by the following communities: Village of Beecher,
16City of Blue Island, Village of Burnham, City of Calumet City,
17Village of Calumet Park, City of Chicago Heights, City of
18Country Club Hills, Village of Crestwood, Village of Crete,
19Village of Dixmoor, Village of Dolton, Village of East Hazel
20Crest, Village of Flossmoor, Village of Ford Heights, Village
21of Glenwood, City of Harvey, Village of Hazel Crest, Village of
22Homewood, Village of Lansing, Village of Lynwood, City of
23Markham, Village of Matteson, Village of Midlothian, Village of
24Monee, City of Oak Forest, Village of Olympia Fields, Village
25of Orland Hills, Village of Orland Park, City of Palos Heights,
26Village of Park Forest, Village of Phoenix, Village of Posen,

 

 

10100SB0690ham003- 707 -LRB101 04451 SMS 61572 a

1Village of Richton Park, Village of Riverdale, Village of
2Robbins, Village of Sauk Village, Village of South Chicago
3Heights, Village of South Holland, Village of Steger, Village
4of Thornton, Village of Tinley Park, Village of University Park
5and Village of Worth; or (B) if no regional capital development
6plan exists, equally among the communities listed in item (A)
7to be used for capital expenditures or public pension payments,
8or both.
9    Units of local government may refund any portion of the
10payment that they receive pursuant to this subsection (b) to
11the riverboat or casino.
12    (b-4) Beginning on the first day the licensee under
13paragraph (5) of subsection (e-5) of Section 7 conducts
14gambling operations, either in a temporary facility or a
15permanent facility, and ending on July 31, 2042, from the tax
16revenue deposited in the State Gaming Fund under this Section,
17$5,000,000 shall be paid annually, subject to appropriation, to
18the host municipality of that owners licensee of a license
19issued or re-issued pursuant to Section 7.1 of this Act before
20January 1, 2012. Payments received by the host municipality
21pursuant to this subsection (b-4) may not be shared with any
22other unit of local government.
23    (b-5) Beginning on the effective date of this amendatory
24Act of the 101st General Assembly, from the tax revenue
25deposited in the State Gaming Fund under this Section, an
26amount equal to 3% of adjusted gross receipts generated by each

 

 

10100SB0690ham003- 708 -LRB101 04451 SMS 61572 a

1organization gaming facility located outside Madison County
2shall be paid monthly, subject to appropriation by the General
3Assembly, to a municipality other than the Village of Stickney
4in which each organization gaming facility is located or, if
5the organization gaming facility is not located within a
6municipality, to the county in which the organization gaming
7facility is located, except as otherwise provided in this
8Section. From the tax revenue deposited in the State Gaming
9Fund under this Section, an amount equal to 3% of adjusted
10gross receipts generated by an organization gaming facility
11located in the Village of Stickney shall be paid monthly,
12subject to appropriation by the General Assembly, as follows:
1325% to the Village of Stickney, 5% to the City of Berwyn, 50%
14to the Town of Cicero, and 20% to the Stickney Public Health
15District.
16    From the tax revenue deposited in the State Gaming Fund
17under this Section, an amount equal to 5% of adjusted gross
18receipts generated by an organization gaming facility located
19in the City of Collinsville shall be paid monthly, subject to
20appropriation by the General Assembly, as follows: 30% to the
21City of Alton, 30% to the City of East St. Louis, and 40% to the
22City of Collinsville.
23    Municipalities and counties may refund any portion of the
24payment that they receive pursuant to this subsection (b-5) to
25the organization gaming facility.
26    (b-6) Beginning on the effective date of this amendatory

 

 

10100SB0690ham003- 709 -LRB101 04451 SMS 61572 a

1Act of the 101st General Assembly, from the tax revenue
2deposited in the State Gaming Fund under this Section, an
3amount equal to 2% of adjusted gross receipts generated by an
4organization gaming facility located outside Madison County
5shall be paid monthly, subject to appropriation by the General
6Assembly, to the county in which the organization gaming
7facility is located for the purposes of its criminal justice
8system or health care system.
9    Counties may refund any portion of the payment that they
10receive pursuant to this subsection (b-6) to the organization
11gaming facility.
12    (b-7) From the tax revenue from the organization gaming
13licensee located in one of the following townships of Cook
14County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
15Worth, an amount equal to 5% of the adjusted gross receipts
16generated by that organization gaming licensee shall be
17remitted monthly, subject to appropriation, as follows: 2% to
18the unit of local government in which the organization gaming
19licensee is located, and 3% shall be distributed: (A) in
20accordance with a regional capital development plan entered
21into by the following communities: Village of Beecher, City of
22Blue Island, Village of Burnham, City of Calumet City, Village
23of Calumet Park, City of Chicago Heights, City of Country Club
24Hills, Village of Crestwood, Village of Crete, Village of
25Dixmoor, Village of Dolton, Village of East Hazel Crest,
26Village of Flossmoor, Village of Ford Heights, Village of

 

 

10100SB0690ham003- 710 -LRB101 04451 SMS 61572 a

1Glenwood, City of Harvey, Village of Hazel Crest, Village of
2Homewood, Village of Lansing, Village of Lynwood, City of
3Markham, Village of Matteson, Village of Midlothian, Village of
4Monee, City of Oak Forest, Village of Olympia Fields, Village
5of Orland Hills, Village of Orland Park, City of Palos Heights,
6Village of Park Forest, Village of Phoenix, Village of Posen,
7Village of Richton Park, Village of Riverdale, Village of
8Robbins, Village of Sauk Village, Village of South Chicago
9Heights, Village of South Holland, Village of Steger, Village
10of Thornton, Village of Tinley Park, Village of University
11Park, and Village of Worth; or (B) if no regional capital
12development plan exists, equally among the communities listed
13in item (A) to be used for capital expenditures or public
14pension payments, or both.
15    (b-8) In lieu of the payments under subsection (b) of this
16Section, the tax revenue from the privilege tax imposed by
17subsection (a-5.5) shall be paid monthly, subject to
18appropriation by the General Assembly, to the City of Chicago
19and shall be expended or obligated by the City of Chicago for
20pension payments in accordance with Public Act 99-506.
21    (c) Appropriations, as approved by the General Assembly,
22may be made from the State Gaming Fund to the Board (i) for the
23administration and enforcement of this Act and the Video Gaming
24Act, (ii) for distribution to the Department of State Police
25and to the Department of Revenue for the enforcement of this
26Act, and the Video Gaming Act, and (iii) to the Department of

 

 

10100SB0690ham003- 711 -LRB101 04451 SMS 61572 a

1Human Services for the administration of programs to treat
2problem gambling. The Board's annual appropriations request
3must separately state its funding needs for the regulation of
4gaming authorized under Section 7.7, riverboat gaming, casino
5gaming, video gaming, and sports wagering.
6    (c-2) An amount equal to 2% of the adjusted gross receipts
7generated by an organization gaming facility located within a
8home rule county with a population of over 3,000,000
9inhabitants shall be paid, subject to appropriation from the
10General Assembly, from the State Gaming Fund to the home rule
11county in which the organization gaming licensee is located for
12the purpose of enhancing the county's criminal justice system.
13    (c-3) Appropriations, as approved by the General Assembly,
14may be made from the tax revenue deposited into the State
15Gaming Fund from organization gaming licensees pursuant to this
16Section for the administration and enforcement of this Act.
17    (c-4) After payments required under subsections (b),
18(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
19the tax revenue from organization gaming licensees deposited
20into the State Gaming Fund under this Section, all remaining
21amounts from organization gaming licensees shall be
22transferred into the Capital Projects Fund.
23    (c-5) (Blank). Before May 26, 2006 (the effective date of
24Public Act 94-804) and beginning on the effective date of this
25amendatory Act of the 95th General Assembly, unless any
26organization licensee under the Illinois Horse Racing Act of

 

 

10100SB0690ham003- 712 -LRB101 04451 SMS 61572 a

11975 begins to operate a slot machine or video game of chance
2under the Illinois Horse Racing Act of 1975 or this Act, after
3the payments required under subsections (b) and (c) have been
4made, an amount equal to 15% of the adjusted gross receipts of
5(1) an owners licensee that relocates pursuant to Section 11.2,
6(2) an owners licensee conducting riverboat gambling
7operations pursuant to an owners license that is initially
8issued after June 25, 1999, or (3) the first riverboat gambling
9operations conducted by a licensed manager on behalf of the
10State under Section 7.3, whichever comes first, shall be paid
11from the State Gaming Fund into the Horse Racing Equity Fund.
12    (c-10) Each year the General Assembly shall appropriate
13from the General Revenue Fund to the Education Assistance Fund
14an amount equal to the amount paid into the Horse Racing Equity
15Fund pursuant to subsection (c-5) in the prior calendar year.
16    (c-15) After the payments required under subsections (b),
17(c), and (c-5) have been made, an amount equal to 2% of the
18adjusted gross receipts of (1) an owners licensee that
19relocates pursuant to Section 11.2, (2) an owners licensee
20conducting riverboat gambling operations pursuant to an owners
21license that is initially issued after June 25, 1999, or (3)
22the first riverboat gambling operations conducted by a licensed
23manager on behalf of the State under Section 7.3, whichever
24comes first, shall be paid, subject to appropriation from the
25General Assembly, from the State Gaming Fund to each home rule
26county with a population of over 3,000,000 inhabitants for the

 

 

10100SB0690ham003- 713 -LRB101 04451 SMS 61572 a

1purpose of enhancing the county's criminal justice system.
2    (c-20) Each year the General Assembly shall appropriate
3from the General Revenue Fund to the Education Assistance Fund
4an amount equal to the amount paid to each home rule county
5with a population of over 3,000,000 inhabitants pursuant to
6subsection (c-15) in the prior calendar year.
7    (c-21) After the payments required under subsections (b),
8(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
9been made, an amount equal to 2% of the adjusted gross receipts
10generated by the owners licensee under paragraph (1) of
11subsection (e-5) of Section 7 shall be paid, subject to
12appropriation from the General Assembly, from the State Gaming
13Fund to the home rule county in which the owners licensee is
14located for the purpose of enhancing the county's criminal
15justice system.
16    (c-22) After the payments required under subsections (b),
17(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
18(c-21) have been made, an amount equal to 2% of the adjusted
19gross receipts generated by the owners licensee under paragraph
20(5) of subsection (e-5) of Section 7 shall be paid, subject to
21appropriation from the General Assembly, from the State Gaming
22Fund to the home rule county in which the owners licensee is
23located for the purpose of enhancing the county's criminal
24justice system.
25    (c-25) From On July 1, 2013 and each July 1
26thereafterthrough July 1, 2019, $1,600,000 shall be

 

 

10100SB0690ham003- 714 -LRB101 04451 SMS 61572 a

1transferred from the State Gaming Fund to the Chicago State
2University Education Improvement Fund.
3    On July 1, 2020 and each July 1 thereafter, $3,000,000
4shall be transferred from the State Gaming Fund to the Chicago
5State University Education Improvement Fund.
6    (c-30) On July 1, 2013 or as soon as possible thereafter,
7$92,000,000 shall be transferred from the State Gaming Fund to
8the School Infrastructure Fund and $23,000,000 shall be
9transferred from the State Gaming Fund to the Horse Racing
10Equity Fund.
11    (c-35) Beginning on July 1, 2013, in addition to any amount
12transferred under subsection (c-30) of this Section,
13$5,530,000 shall be transferred monthly from the State Gaming
14Fund to the School Infrastructure Fund.
15    (d) From time to time, the Board shall transfer the
16remainder of the funds generated by this Act into the Education
17Assistance Fund, created by Public Act 86-0018, of the State of
18Illinois.
19    (e) Nothing in this Act shall prohibit the unit of local
20government designated as the home dock of the riverboat from
21entering into agreements with other units of local government
22in this State or in other states to share its portion of the
23tax revenue.
24    (f) To the extent practicable, the Board shall administer
25and collect the wagering taxes imposed by this Section in a
26manner consistent with the provisions of Sections 4, 5, 5a, 5b,

 

 

10100SB0690ham003- 715 -LRB101 04451 SMS 61572 a

15c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
2Retailers' Occupation Tax Act and Section 3-7 of the Uniform
3Penalty and Interest Act.
4(Source: P.A. 98-18, eff. 6-7-13.)
 
5    (230 ILCS 10/14)  (from Ch. 120, par. 2414)
6    Sec. 14. Licensees - Records - Reports - Supervision.
7    (a) Licensed owners and organization gaming licensees A
8licensed owner shall keep his books and records so as to
9clearly show the following:
10    (1) The amount received daily from admission fees.
11    (2) The total amount of gross receipts.
12    (3) The total amount of the adjusted gross receipts.
13    (b) Licensed owners and organization gaming licensees The
14licensed owner shall furnish to the Board reports and
15information as the Board may require with respect to its
16activities on forms designed and supplied for such purpose by
17the Board.
18    (c) The books and records kept by a licensed owner as
19provided by this Section are public records and the
20examination, publication, and dissemination of the books and
21records are governed by the provisions of The Freedom of
22Information Act.
23(Source: P.A. 86-1029.)
 
24    (230 ILCS 10/15)  (from Ch. 120, par. 2415)

 

 

10100SB0690ham003- 716 -LRB101 04451 SMS 61572 a

1    Sec. 15. Audit of Licensee Operations. Annually, the
2licensed owner, or manager, or organization gaming licensee
3shall transmit to the Board an audit of the financial
4transactions and condition of the licensee's or manager's total
5operations. Additionally, within 90 days after the end of each
6quarter of each fiscal year, the licensed owner, or manager, or
7organization gaming licensee shall transmit to the Board a
8compliance report on engagement procedures determined by the
9Board. All audits and compliance engagements shall be conducted
10by certified public accountants selected by the Board. Each
11certified public accountant must be registered in the State of
12Illinois under the Illinois Public Accounting Act. The
13compensation for each certified public accountant shall be paid
14directly by the licensed owner, or manager, or organization
15gaming licensee to the certified public accountant.
16(Source: P.A. 96-1392, eff. 1-1-11.)
 
17    (230 ILCS 10/17)  (from Ch. 120, par. 2417)
18    Sec. 17. Administrative Procedures. The Illinois
19Administrative Procedure Act shall apply to all administrative
20rules and procedures of the Board under this Act and or the
21Video Gaming Act, except that: (1) subsection (b) of Section
225-10 of the Illinois Administrative Procedure Act does not
23apply to final orders, decisions and opinions of the Board; (2)
24subsection (a) of Section 5-10 of the Illinois Administrative
25Procedure Act does not apply to forms established by the Board

 

 

10100SB0690ham003- 717 -LRB101 04451 SMS 61572 a

1for use under this Act and or the Video Gaming Act; (3) the
2provisions of Section 10-45 of the Illinois Administrative
3Procedure Act regarding proposals for decision are excluded
4under this Act and or the Video Gaming Act; and (4) the
5provisions of subsection (d) of Section 10-65 of the Illinois
6Administrative Procedure Act do not apply so as to prevent
7summary suspension of any license pending revocation or other
8action, which suspension shall remain in effect unless modified
9by the Board or unless the Board's decision is reversed on the
10merits upon judicial review.
11(Source: P.A. 96-34, eff. 7-13-09.)
 
12    (230 ILCS 10/17.1)  (from Ch. 120, par. 2417.1)
13    Sec. 17.1. Judicial Review.
14    (a) Jurisdiction and venue for the judicial review of a
15final order of the Board relating to licensed owners,
16suppliers, organization gaming licensees, and or special event
17licenses is vested in the Appellate Court of the judicial
18district in which Sangamon County is located. A petition for
19judicial review of a final order of the Board must be filed in
20the Appellate Court, within 35 days from the date that a copy
21of the decision sought to be reviewed was served upon the party
22affected by the decision.
23    (b) Judicial review of all other final orders of the Board
24shall be conducted in accordance with the Administrative Review
25Law.

 

 

10100SB0690ham003- 718 -LRB101 04451 SMS 61572 a

1(Source: P.A. 88-1.)
 
2    (230 ILCS 10/18)  (from Ch. 120, par. 2418)
3    Sec. 18. Prohibited Activities - Penalty.
4    (a) A person is guilty of a Class A misdemeanor for doing
5any of the following:
6        (1) Conducting gambling where wagering is used or to be
7    used without a license issued by the Board.
8        (2) Conducting gambling where wagering is permitted
9    other than in the manner specified by Section 11.
10    (b) A person is guilty of a Class B misdemeanor for doing
11any of the following:
12        (1) permitting a person under 21 years to make a wager;
13    or
14        (2) violating paragraph (12) of subsection (a) of
15    Section 11 of this Act.
16    (c) A person wagering or accepting a wager at any location
17outside the riverboat, casino, or organization gaming facility
18in violation of paragraph is subject to the penalties in
19paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
20Criminal Code of 2012 is subject to the penalties provided in
21that Section.
22    (d) A person commits a Class 4 felony and, in addition,
23shall be barred for life from gambling operations riverboats
24under the jurisdiction of the Board, if the person does any of
25the following:

 

 

10100SB0690ham003- 719 -LRB101 04451 SMS 61572 a

1        (1) Offers, promises, or gives anything of value or
2    benefit to a person who is connected with a riverboat or
3    casino owner or organization gaming licensee, including,
4    but not limited to, an officer or employee of a licensed
5    owner, organization gaming licensee, or holder of an
6    occupational license pursuant to an agreement or
7    arrangement or with the intent that the promise or thing of
8    value or benefit will influence the actions of the person
9    to whom the offer, promise, or gift was made in order to
10    affect or attempt to affect the outcome of a gambling game,
11    or to influence official action of a member of the Board.
12        (2) Solicits or knowingly accepts or receives a promise
13    of anything of value or benefit while the person is
14    connected with a riverboat, casino, or organization gaming
15    facility, including, but not limited to, an officer or
16    employee of a licensed owner or organization gaming
17    licensee, or the holder of an occupational license,
18    pursuant to an understanding or arrangement or with the
19    intent that the promise or thing of value or benefit will
20    influence the actions of the person to affect or attempt to
21    affect the outcome of a gambling game, or to influence
22    official action of a member of the Board.
23        (3) Uses or possesses with the intent to use a device
24    to assist:
25            (i) In projecting the outcome of the game.
26            (ii) In keeping track of the cards played.

 

 

10100SB0690ham003- 720 -LRB101 04451 SMS 61572 a

1            (iii) In analyzing the probability of the
2        occurrence of an event relating to the gambling game.
3            (iv) In analyzing the strategy for playing or
4        betting to be used in the game except as permitted by
5        the Board.
6        (4) Cheats at a gambling game.
7        (5) Manufactures, sells, or distributes any cards,
8    chips, dice, game or device which is intended to be used to
9    violate any provision of this Act.
10        (6) Alters or misrepresents the outcome of a gambling
11    game on which wagers have been made after the outcome is
12    made sure but before it is revealed to the players.
13        (7) Places a bet after acquiring knowledge, not
14    available to all players, of the outcome of the gambling
15    game which is subject of the bet or to aid a person in
16    acquiring the knowledge for the purpose of placing a bet
17    contingent on that outcome.
18        (8) Claims, collects, or takes, or attempts to claim,
19    collect, or take, money or anything of value in or from the
20    gambling games, with intent to defraud, without having made
21    a wager contingent on winning a gambling game, or claims,
22    collects, or takes an amount of money or thing of value of
23    greater value than the amount won.
24        (9) Uses counterfeit chips or tokens in a gambling
25    game.
26        (10) Possesses any key or device designed for the

 

 

10100SB0690ham003- 721 -LRB101 04451 SMS 61572 a

1    purpose of opening, entering, or affecting the operation of
2    a gambling game, drop box, or an electronic or mechanical
3    device connected with the gambling game or for removing
4    coins, tokens, chips or other contents of a gambling game.
5    This paragraph (10) does not apply to a gambling licensee
6    or employee of a gambling licensee acting in furtherance of
7    the employee's employment.
8    (e) The possession of more than one of the devices
9described in subsection (d), paragraphs (3), (5), or (10)
10permits a rebuttable presumption that the possessor intended to
11use the devices for cheating.
12    (f) A person under the age of 21 who, except as authorized
13under paragraph (10) of Section 11, enters upon a riverboat or
14in a casino or organization gaming facility commits a petty
15offense and is subject to a fine of not less than $100 or more
16than $250 for a first offense and of not less than $200 or more
17than $500 for a second or subsequent offense.
18    An action to prosecute any crime occurring on a riverboat
19shall be tried in the county of the dock at which the riverboat
20is based. An action to prosecute any crime occurring in a
21casino or organization gaming facility shall be tried in the
22county in which the casino or organization gaming facility is
23located.
24(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 
25    (230 ILCS 10/18.1)

 

 

10100SB0690ham003- 722 -LRB101 04451 SMS 61572 a

1    Sec. 18.1. Distribution of certain fines. If a fine is
2imposed on an owners owner licensee or an organization gaming
3licensee for knowingly sending marketing or promotional
4materials to any person placed on the self-exclusion list, then
5the Board shall distribute an amount equal to 15% of the fine
6imposed to the unit of local government in which the casino,
7riverboat, or organization gaming facility is located for the
8purpose of awarding grants to non-profit entities that assist
9gambling addicts.
10(Source: P.A. 96-224, eff. 8-11-09.)
 
11    (230 ILCS 10/19)  (from Ch. 120, par. 2419)
12    Sec. 19. Forfeiture of property.
13    (a) Except as provided in subsection (b), any riverboat,
14casino, or organization gaming facility used for the conduct of
15gambling games in violation of this Act shall be considered a
16gambling place in violation of Section 28-3 of the Criminal
17Code of 2012. Every gambling device found on a riverboat, in a
18casino, or at an organization gaming facility operating
19gambling games in violation of this Act and every slot machine
20and video game of chance found at an organization gaming
21facility operating gambling games in violation of this Act
22shall be subject to seizure, confiscation and destruction as
23provided in Section 28-5 of the Criminal Code of 2012.
24    (b) It is not a violation of this Act for a riverboat or
25other watercraft which is licensed for gaming by a contiguous

 

 

10100SB0690ham003- 723 -LRB101 04451 SMS 61572 a

1state to dock on the shores of this State if the municipality
2having jurisdiction of the shores, or the county in the case of
3unincorporated areas, has granted permission for docking and no
4gaming is conducted on the riverboat or other watercraft while
5it is docked on the shores of this State. No gambling device
6shall be subject to seizure, confiscation or destruction if the
7gambling device is located on a riverboat or other watercraft
8which is licensed for gaming by a contiguous state and which is
9docked on the shores of this State if the municipality having
10jurisdiction of the shores, or the county in the case of
11unincorporated areas, has granted permission for docking and no
12gaming is conducted on the riverboat or other watercraft while
13it is docked on the shores of this State.
14(Source: P.A. 97-1150, eff. 1-25-13.)
 
15    (230 ILCS 10/20)  (from Ch. 120, par. 2420)
16    Sec. 20. Prohibited activities - civil penalties. Any
17person who conducts a gambling operation without first
18obtaining a license to do so, or who continues to conduct such
19games after revocation of his license, or any licensee who
20conducts or allows to be conducted any unauthorized gambling
21games on a riverboat, in a casino, or at an organization gaming
22facility where it is authorized to conduct its riverboat
23gambling operation, in addition to other penalties provided,
24shall be subject to a civil penalty equal to the amount of
25gross receipts derived from wagering on the gambling games,

 

 

10100SB0690ham003- 724 -LRB101 04451 SMS 61572 a

1whether unauthorized or authorized, conducted on that day as
2well as confiscation and forfeiture of all gambling game
3equipment used in the conduct of unauthorized gambling games.
4(Source: P.A. 86-1029.)
 
5    (230 ILCS 10/24)
6    Sec. 24. Applicability of this Illinois Riverboat Gambling
7Act. The provisions of this the Illinois Riverboat Gambling
8Act, and all rules promulgated thereunder, shall apply to the
9Video Gaming Act, except where there is a conflict between the
102 Acts. In the event of a conflict between this Act and the
11Video Gaming Act, the terms of this Act shall prevail.
12(Source: P.A. 96-37, eff. 7-13-09.)
 
13    Section 35-60. The Video Gaming Act is amended by changing
14Sections 5, 15, 20, 25, 30, 35, 45, 55, 58, 60, 79, and 80 as
15follows:
 
16    (230 ILCS 40/5)
17    Sec. 5. Definitions. As used in this Act:
18    "Board" means the Illinois Gaming Board.
19    "Credit" means one, 5, 10, or 25 cents either won or
20purchased by a player.
21    "Distributor" means an individual, partnership,
22corporation, or limited liability company licensed under this
23Act to buy, sell, lease, or distribute video gaming terminals

 

 

10100SB0690ham003- 725 -LRB101 04451 SMS 61572 a

1or major components or parts of video gaming terminals to or
2from terminal operators.
3    "Electronic card" means a card purchased from a licensed
4establishment, licensed fraternal establishment, licensed
5veterans establishment, or licensed truck stop establishment,
6or licensed large truck stop establishment for use in that
7establishment as a substitute for cash in the conduct of gaming
8on a video gaming terminal.
9    "Electronic voucher" means a voucher printed by an
10electronic video game machine that is redeemable in the
11licensed establishment for which it was issued.
12    "In-location bonus jackpot" means one or more video gaming
13terminals at a single licensed establishment that allows for
14wagers placed on such video gaming terminals to contribute to a
15cumulative maximum jackpot of up to $10,000.
16    "Terminal operator" means an individual, partnership,
17corporation, or limited liability company that is licensed
18under this Act and that owns, services, and maintains video
19gaming terminals for placement in licensed establishments,
20licensed truck stop establishments, licensed large truck stop
21establishments, licensed fraternal establishments, or licensed
22veterans establishments.
23    "Licensed technician" means an individual who is licensed
24under this Act to repair, service, and maintain video gaming
25terminals.
26    "Licensed terminal handler" means a person, including but

 

 

10100SB0690ham003- 726 -LRB101 04451 SMS 61572 a

1not limited to an employee or independent contractor working
2for a manufacturer, distributor, supplier, technician, or
3terminal operator, who is licensed under this Act to possess or
4control a video gaming terminal or to have access to the inner
5workings of a video gaming terminal. A licensed terminal
6handler does not include an individual, partnership,
7corporation, or limited liability company defined as a
8manufacturer, distributor, supplier, technician, or terminal
9operator under this Act.
10    "Manufacturer" means an individual, partnership,
11corporation, or limited liability company that is licensed
12under this Act and that manufactures or assembles video gaming
13terminals.
14    "Supplier" means an individual, partnership, corporation,
15or limited liability company that is licensed under this Act to
16supply major components or parts to video gaming terminals to
17licensed terminal operators.
18    "Net terminal income" means money put into a video gaming
19terminal minus credits paid out to players.
20    "Video gaming terminal" means any electronic video game
21machine that, upon insertion of cash, electronic cards or
22vouchers, or any combination thereof, is available to play or
23simulate the play of a video game, including but not limited to
24video poker, line up, and blackjack, as authorized by the Board
25utilizing a video display and microprocessors in which the
26player may receive free games or credits that can be redeemed

 

 

10100SB0690ham003- 727 -LRB101 04451 SMS 61572 a

1for cash. The term does not include a machine that directly
2dispenses coins, cash, or tokens or is for amusement purposes
3only.
4    "Licensed establishment" means any licensed retail
5establishment where alcoholic liquor is drawn, poured, mixed,
6or otherwise served for consumption on the premises, whether
7the establishment operates on a nonprofit or for-profit basis.
8"Licensed establishment" includes any such establishment that
9has a contractual relationship with an inter-track wagering
10location licensee licensed under the Illinois Horse Racing Act
11of 1975, provided any contractual relationship shall not
12include any transfer or offer of revenue from the operation of
13video gaming under this Act to any licensee licensed under the
14Illinois Horse Racing Act of 1975. Provided, however, that the
15licensed establishment that has such a contractual
16relationship with an inter-track wagering location licensee
17may not, itself, be (i) an inter-track wagering location
18licensee, (ii) the corporate parent or subsidiary of any
19licensee licensed under the Illinois Horse Racing Act of 1975,
20or (iii) the corporate subsidiary of a corporation that is also
21the corporate parent or subsidiary of any licensee licensed
22under the Illinois Horse Racing Act of 1975. "Licensed
23establishment" does not include a facility operated by an
24organization licensee, an inter-track wagering licensee, or an
25inter-track wagering location licensee licensed under the
26Illinois Horse Racing Act of 1975 or a riverboat licensed under

 

 

10100SB0690ham003- 728 -LRB101 04451 SMS 61572 a

1the Illinois Riverboat Gambling Act, except as provided in this
2paragraph. The changes made to this definition by Public Act
398-587 are declarative of existing law.
4    "Licensed fraternal establishment" means the location
5where a qualified fraternal organization that derives its
6charter from a national fraternal organization regularly
7meets.
8    "Licensed veterans establishment" means the location where
9a qualified veterans organization that derives its charter from
10a national veterans organization regularly meets.
11    "Licensed truck stop establishment" means a facility (i)
12that is at least a 3-acre facility with a convenience store,
13(ii) with separate diesel islands for fueling commercial motor
14vehicles, (iii) that sells at retail more than 10,000 gallons
15of diesel or biodiesel fuel per month, and (iv) with parking
16spaces for commercial motor vehicles. "Commercial motor
17vehicles" has the same meaning as defined in Section 18b-101 of
18the Illinois Vehicle Code. The requirement of item (iii) of
19this paragraph may be met by showing that estimated future
20sales or past sales average at least 10,000 gallons per month.
21    "Licensed large truck stop establishment" means a facility
22located within 3 road miles from a freeway interchange, as
23measured in accordance with the Department of Transportation's
24rules regarding the criteria for the installation of business
25signs: (i) that is at least a 3-acre facility with a
26convenience store, (ii) with separate diesel islands for

 

 

10100SB0690ham003- 729 -LRB101 04451 SMS 61572 a

1fueling commercial motor vehicles, (iii) that sells at retail
2more than 50,000 gallons of diesel or biodiesel fuel per month,
3and (iv) with parking spaces for commercial motor vehicles.
4"Commercial motor vehicles" has the same meaning as defined in
5Section 18b-101 of the Illinois Vehicle Code. The requirement
6of item (iii) of this paragraph may be met by showing that
7estimated future sales or past sales average at least 50,000
8gallons per month.
9(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
1098-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
117-16-14.)
 
12    (230 ILCS 40/15)
13    Sec. 15. Minimum requirements for licensing and
14registration. Every video gaming terminal offered for play
15shall first be tested and approved pursuant to the rules of the
16Board, and each video gaming terminal offered in this State for
17play shall conform to an approved model. For the examination of
18video gaming machines and associated equipment as required by
19this Section, the Board shall may utilize the services of one
20or more independent outside testing laboratories that have been
21accredited in accordance with ISO/IEC 17025 by an accreditation
22body that is a signatory to the International Laboratory
23Accreditation Cooperation Mutual Recognition Agreement
24signifying they are qualified to by a national accreditation
25body and that, in the judgment of the Board, are qualified to

 

 

10100SB0690ham003- 730 -LRB101 04451 SMS 61572 a

1perform such examinations. Notwithstanding any law to the
2contrary, the Board shall consider the licensing of independent
3outside testing laboratory applicants in accordance with
4procedures established by the Board by rule. The Board shall
5not withhold its approval of an independent outside testing
6laboratory license applicant that has been accredited as
7required by this Section and is licensed in gaming
8jurisdictions comparable to Illinois. Upon the finalization of
9required rules, the Board shall license independent testing
10laboratories and accept the test reports of any licensed
11testing laboratory of the video gaming machine's or associated
12equipment manufacturer's choice, notwithstanding the existence
13of contracts between the Board and any independent testing
14laboratory. Every video gaming terminal offered in this State
15for play must meet minimum standards set by an independent
16outside testing laboratory approved by the Board. Each approved
17model shall, at a minimum, meet the following criteria:
18        (1) It must conform to all requirements of federal law
19    and regulations, including FCC Class A Emissions
20    Standards.
21        (2) It must theoretically pay out a mathematically
22    demonstrable percentage during the expected lifetime of
23    the machine of all amounts played, which must not be less
24    than 80%. The Board shall establish a maximum payout
25    percentage for approved models by rule. Video gaming
26    terminals that may be affected by skill must meet this

 

 

10100SB0690ham003- 731 -LRB101 04451 SMS 61572 a

1    standard when using a method of play that will provide the
2    greatest return to the player over a period of continuous
3    play.
4        (3) It must use a random selection process to determine
5    the outcome of each play of a game. The random selection
6    process must meet 99% confidence limits using a standard
7    chi-squared test for (randomness) goodness of fit.
8        (4) It must display an accurate representation of the
9    game outcome.
10        (5) It must not automatically alter pay tables or any
11    function of the video gaming terminal based on internal
12    computation of hold percentage or have any means of
13    manipulation that affects the random selection process or
14    probabilities of winning a game.
15        (6) It must not be adversely affected by static
16    discharge or other electromagnetic interference.
17        (7) It must be capable of detecting and displaying the
18    following conditions during idle states or on demand: power
19    reset; door open; and door just closed.
20        (8) It must have the capacity to display complete play
21    history (outcome, intermediate play steps, credits
22    available, bets placed, credits paid, and credits cashed
23    out) for the most recent game played and 10 games prior
24    thereto.
25        (9) The theoretical payback percentage of a video
26    gaming terminal must not be capable of being changed

 

 

10100SB0690ham003- 732 -LRB101 04451 SMS 61572 a

1    without making a hardware or software change in the video
2    gaming terminal, either on site or via the central
3    communications system.
4        (10) Video gaming terminals must be designed so that
5    replacement of parts or modules required for normal
6    maintenance does not necessitate replacement of the
7    electromechanical meters.
8        (11) It must have nonresettable meters housed in a
9    locked area of the terminal that keep a permanent record of
10    all cash inserted into the machine, all winnings made by
11    the terminal printer, credits played in for video gaming
12    terminals, and credits won by video gaming players. The
13    video gaming terminal must provide the means for on-demand
14    display of stored information as determined by the Board.
15        (12) Electronically stored meter information required
16    by this Section must be preserved for a minimum of 180 days
17    after a power loss to the service.
18        (13) It must have one or more mechanisms that accept
19    cash in the form of bills. The mechanisms shall be designed
20    to prevent obtaining credits without paying by stringing,
21    slamming, drilling, or other means. If such attempts at
22    physical tampering are made, the video gaming terminal
23    shall suspend itself from operating until reset.
24        (14) It shall have accounting software that keeps an
25    electronic record which includes, but is not limited to,
26    the following: total cash inserted into the video gaming

 

 

10100SB0690ham003- 733 -LRB101 04451 SMS 61572 a

1    terminal; the value of winning tickets claimed by players;
2    the total credits played; the total credits awarded by a
3    video gaming terminal; and pay back percentage credited to
4    players of each video game.
5        (15) It shall be linked by a central communications
6    system to provide auditing program information as approved
7    by the Board. The central communications system shall use a
8    standard industry protocol, as defined by the Gaming
9    Standards Association, and shall have the functionality to
10    enable the Board or its designee to activate or deactivate
11    individual gaming devices from the central communications
12    system. In no event may the communications system approved
13    by the Board limit participation to only one manufacturer
14    of video gaming terminals by either the cost in
15    implementing the necessary program modifications to
16    communicate or the inability to communicate with the
17    central communications system.
18        (16) The Board, in its discretion, may require video
19    gaming terminals to display Amber Alert messages if the
20    Board makes a finding that it would be economically and
21    technically feasible and pose no risk to the integrity and
22    security of the central communications system and video
23    gaming terminals.
24    Licensed terminal handlers shall have access to video
25gaming terminals, including, but not limited to, logic door
26access, without the physical presence or supervision of the

 

 

10100SB0690ham003- 734 -LRB101 04451 SMS 61572 a

1Board or its agent to perform, in coordination with and with
2project approval from the central communication system
3provider:
4        (i) the clearing of the random access memory and
5    reprogramming of the video gaming terminal;
6        (ii) the installation of new video gaming terminal
7    software and software upgrades that have been approved by
8    the Board;
9        (iii) the placement, connection to the central
10    communication system, and go-live operation of video
11    gaming terminals at a licensed establishment, licensed
12    truck stop establishment, licensed large truck stop
13    establishment, licensed fraternal establishment, or
14    licensed veterans establishment;
15        (iv) the repair and maintenance of a video gaming
16    terminal located at a licensed establishment, licensed
17    truck stop establishment, licensed large truck stop
18    establishment, licensed fraternal establishment, or
19    licensed veterans establishment, including, but not
20    limited to, the replacement of the video gaming terminal
21    with a new video gaming terminal;
22        (v) the temporary movement, disconnection,
23    replacement, and reconnection of video gaming terminals to
24    allow for physical improvements and repairs at a licensed
25    establishment, licensed truck stop establishment, licensed
26    large truck stop establishment, licensed fraternal

 

 

10100SB0690ham003- 735 -LRB101 04451 SMS 61572 a

1    establishment, or licensed veterans establishment, such as
2    replacement of flooring, interior repairs, and other
3    similar activities; and
4        (vi) such other functions as the Board may otherwise
5    authorize.
6    The Board shall, at a licensed terminal operator's expense,
7cause all keys and other required devices to be provided to a
8terminal operator necessary to allow the licensed terminal
9handler access to the logic door to the terminal operator's
10video gaming terminals.
11    The Board may adopt rules to establish additional criteria
12to preserve the integrity and security of video gaming in this
13State. The central communications system vendor may be licensed
14as a video gaming terminal manufacturer or a video gaming
15terminal distributor, or both, but in no event shall the
16central communications system vendor be licensed as a video
17gaming terminal operator.
18    The Board shall not permit the development of information
19or the use by any licensee of gaming device or individual game
20performance data. Nothing in this Act shall inhibit or prohibit
21the Board from the use of gaming device or individual game
22performance data in its regulatory duties. The Board shall
23adopt rules to ensure that all licensees are treated and all
24licensees act in a non-discriminatory manner and develop
25processes and penalties to enforce those rules.
26(Source: P.A. 98-31, eff. 6-24-13; 98-377, eff. 1-1-14; 98-582,

 

 

10100SB0690ham003- 736 -LRB101 04451 SMS 61572 a

1eff. 8-27-13; 98-756, eff. 7-16-14.)
 
2    (230 ILCS 40/20)
3    Sec. 20. Video gaming terminal payouts Direct dispensing of
4receipt tickets only.
5    (a) A video gaming terminal may not directly dispense
6coins, cash, tokens, or any other article of exchange or value
7except for receipt tickets. Tickets shall be dispensed by
8pressing the ticket dispensing button on the video gaming
9terminal at the end of one's turn or play. The ticket shall
10indicate the total amount of credits and the cash award, the
11time of day in a 24-hour format showing hours and minutes, the
12date, the terminal serial number, the sequential number of the
13ticket, and an encrypted validation number from which the
14validity of the prize may be determined. The player shall turn
15in this ticket to the appropriate person at the licensed
16establishment, licensed truck stop establishment, licensed
17large truck stop establishment, licensed fraternal
18establishment, or licensed veterans establishment to receive
19the cash award.
20    (b) The cost of the credit shall be one cent, 5 cents, 10
21cents, or 25 cents, or $1, and the maximum wager played per
22hand shall not exceed $4 $2. No cash award for the maximum
23wager on any individual hand shall exceed $1,199 $500. No cash
24award for the maximum wager on a jackpot, progressive or
25otherwise, shall exceed $10,000.

 

 

10100SB0690ham003- 737 -LRB101 04451 SMS 61572 a

1    (c) In-location bonus jackpot games are hereby authorized.
2The Board shall adopt emergency rules pursuant to Section 5-45
3of the Illinois Administrative Procedure Act to implement this
4subsection (c) within 90 days after the effective date of this
5amendatory Act of the 101st General Assembly. Jackpot winnings
6from in-location progressive games shall be paid by the
7terminal operator to the player not later than 3 days after
8winning such a jackpot.
9(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
10    (230 ILCS 40/25)
11    Sec. 25. Restriction of licensees.
12    (a) Manufacturer. A person may not be licensed as a
13manufacturer of a video gaming terminal in Illinois unless the
14person has a valid manufacturer's license issued under this
15Act. A manufacturer may only sell video gaming terminals for
16use in Illinois to persons having a valid distributor's
17license.
18    (b) Distributor. A person may not sell, distribute, or
19lease or market a video gaming terminal in Illinois unless the
20person has a valid distributor's license issued under this Act.
21A distributor may only sell video gaming terminals for use in
22Illinois to persons having a valid distributor's or terminal
23operator's license.
24    (c) Terminal operator. A person may not own, maintain, or
25place a video gaming terminal unless he has a valid terminal

 

 

10100SB0690ham003- 738 -LRB101 04451 SMS 61572 a

1operator's license issued under this Act. A terminal operator
2may only place video gaming terminals for use in Illinois in
3licensed establishments, licensed truck stop establishments,
4licensed large truck stop establishments, licensed fraternal
5establishments, and licensed veterans establishments. No
6terminal operator may give anything of value, including but not
7limited to a loan or financing arrangement, to a licensed
8establishment, licensed truck stop establishment, licensed
9large truck stop establishment, licensed fraternal
10establishment, or licensed veterans establishment as any
11incentive or inducement to locate video terminals in that
12establishment. Of the after-tax profits from a video gaming
13terminal, 50% shall be paid to the terminal operator and 50%
14shall be paid to the licensed establishment, licensed truck
15stop establishment, licensed large truck stop establishment,
16licensed fraternal establishment, or licensed veterans
17establishment, notwithstanding any agreement to the contrary.
18A video terminal operator that violates one or more
19requirements of this subsection is guilty of a Class 4 felony
20and is subject to termination of his or her license by the
21Board.
22    (d) Licensed technician. A person may not service,
23maintain, or repair a video gaming terminal in this State
24unless he or she (1) has a valid technician's license issued
25under this Act, (2) is a terminal operator, or (3) is employed
26by a terminal operator, distributor, or manufacturer.

 

 

10100SB0690ham003- 739 -LRB101 04451 SMS 61572 a

1    (d-5) Licensed terminal handler. No person, including, but
2not limited to, an employee or independent contractor working
3for a manufacturer, distributor, supplier, technician, or
4terminal operator licensed pursuant to this Act, shall have
5possession or control of a video gaming terminal, or access to
6the inner workings of a video gaming terminal, unless that
7person possesses a valid terminal handler's license issued
8under this Act.
9    (e) Licensed establishment. No video gaming terminal may be
10placed in any licensed establishment, licensed veterans
11establishment, licensed truck stop establishment, licensed
12large truck stop establishment, or licensed fraternal
13establishment unless the owner or agent of the owner of the
14licensed establishment, licensed veterans establishment,
15licensed truck stop establishment, licensed large truck stop
16establishment, or licensed fraternal establishment has entered
17into a written use agreement with the terminal operator for
18placement of the terminals. A copy of the use agreement shall
19be on file in the terminal operator's place of business and
20available for inspection by individuals authorized by the
21Board. A licensed establishment, licensed truck stop
22establishment, licensed veterans establishment, or licensed
23fraternal establishment may operate up to 6 5 video gaming
24terminals on its premises at any time. A licensed large truck
25stop establishment may operate up to 10 video gaming terminals
26on its premises at any time.

 

 

10100SB0690ham003- 740 -LRB101 04451 SMS 61572 a

1    (f) (Blank).
2    (g) Financial interest restrictions. As used in this Act,
3"substantial interest" in a partnership, a corporation, an
4organization, an association, a business, or a limited
5liability company means:
6        (A) When, with respect to a sole proprietorship, an
7    individual or his or her spouse owns, operates, manages, or
8    conducts, directly or indirectly, the organization,
9    association, or business, or any part thereof; or
10        (B) When, with respect to a partnership, the individual
11    or his or her spouse shares in any of the profits, or
12    potential profits, of the partnership activities; or
13        (C) When, with respect to a corporation, an individual
14    or his or her spouse is an officer or director, or the
15    individual or his or her spouse is a holder, directly or
16    beneficially, of 5% or more of any class of stock of the
17    corporation; or
18        (D) When, with respect to an organization not covered
19    in (A), (B) or (C) above, an individual or his or her
20    spouse is an officer or manages the business affairs, or
21    the individual or his or her spouse is the owner of or
22    otherwise controls 10% or more of the assets of the
23    organization; or
24        (E) When an individual or his or her spouse furnishes
25    5% or more of the capital, whether in cash, goods, or
26    services, for the operation of any business, association,

 

 

10100SB0690ham003- 741 -LRB101 04451 SMS 61572 a

1    or organization during any calendar year; or
2        (F) When, with respect to a limited liability company,
3    an individual or his or her spouse is a member, or the
4    individual or his or her spouse is a holder, directly or
5    beneficially, of 5% or more of the membership interest of
6    the limited liability company.
7    For purposes of this subsection (g), "individual" includes
8all individuals or their spouses whose combined interest would
9qualify as a substantial interest under this subsection (g) and
10whose activities with respect to an organization, association,
11or business are so closely aligned or coordinated as to
12constitute the activities of a single entity.
13    (h) Location restriction. A licensed establishment,
14licensed truck stop establishment, licensed large truck stop
15establishment, licensed fraternal establishment, or licensed
16veterans establishment that is (i) located within 1,000 feet of
17a facility operated by an organization licensee licensed under
18the Illinois Horse Racing Act of 1975 or the home dock of a
19riverboat licensed under the Illinois Riverboat Gambling Act or
20(ii) located within 100 feet of a school or a place of worship
21under the Religious Corporation Act, is ineligible to operate a
22video gaming terminal. The location restrictions in this
23subsection (h) do not apply if (A) a facility operated by an
24organization licensee, a school, or a place of worship moves to
25or is established within the restricted area after a licensed
26establishment, licensed truck stop establishment, licensed

 

 

10100SB0690ham003- 742 -LRB101 04451 SMS 61572 a

1large truck stop establishment, licensed fraternal
2establishment, or licensed veterans establishment becomes
3licensed under this Act or (B) a school or place of worship
4moves to or is established within the restricted area after a
5licensed establishment, licensed truck stop establishment,
6licensed large truck stop establishment, licensed fraternal
7establishment, or licensed veterans establishment obtains its
8original liquor license. For the purpose of this subsection,
9"school" means an elementary or secondary public school, or an
10elementary or secondary private school registered with or
11recognized by the State Board of Education.
12    Notwithstanding the provisions of this subsection (h), the
13Board may waive the requirement that a licensed establishment,
14licensed truck stop establishment, licensed large truck stop
15establishment, licensed fraternal establishment, or licensed
16veterans establishment not be located within 1,000 feet from a
17facility operated by an organization licensee licensed under
18the Illinois Horse Racing Act of 1975 or the home dock of a
19riverboat licensed under the Illinois Riverboat Gambling Act.
20The Board shall not grant such waiver if there is any common
21ownership or control, shared business activity, or contractual
22arrangement of any type between the establishment and the
23organization licensee or owners licensee of a riverboat. The
24Board shall adopt rules to implement the provisions of this
25paragraph.
26    (h-5) Restrictions on licenses in malls. The Board shall

 

 

10100SB0690ham003- 743 -LRB101 04451 SMS 61572 a

1not grant an application to become a licensed video gaming
2location if the Board determines that granting the application
3would more likely than not cause a terminal operator,
4individually or in combination with other terminal operators,
5licensed video gaming location, or other person or entity, to
6operate the video gaming terminals in 2 or more licensed video
7gaming locations as a single video gaming operation.
8        (1) In making determinations under this subsection
9    (h-5), factors to be considered by the Board shall include,
10    but not be limited to, the following:
11            (A) the physical aspects of the location;
12            (B) the ownership, control, or management of the
13        location;
14            (C) any arrangements, understandings, or
15        agreements, written or otherwise, among or involving
16        any persons or entities that involve the conducting of
17        any video gaming business or the sharing of costs or
18        revenues; and
19            (D) the manner in which any terminal operator or
20        other related entity markets, advertises, or otherwise
21        describes any location or locations to any other person
22        or entity or to the public.
23        (2) The Board shall presume, subject to rebuttal, that
24    the granting of an application to become a licensed video
25    gaming location within a mall will cause a terminal
26    operator, individually or in combination with other

 

 

10100SB0690ham003- 744 -LRB101 04451 SMS 61572 a

1    persons or entities, to operate the video gaming terminals
2    in 2 or more licensed video gaming locations as a single
3    video gaming operation if the Board determines that
4    granting the license would create a local concentration of
5    licensed video gaming locations.
6    For the purposes of this subsection (h-5):
7    "Mall" means a building, or adjoining or connected
8buildings, containing 4 or more separate locations.
9    "Video gaming operation" means the conducting of video
10gaming and all related activities.
11    "Location" means a space within a mall containing a
12separate business, a place for a separate business, or a place
13subject to a separate leasing arrangement by the mall owner.
14    "Licensed video gaming location" means a licensed
15establishment, licensed fraternal establishment, licensed
16veterans establishment, licensed truck stop establishment, or
17licensed large truck stop.
18    "Local concentration of licensed video gaming locations"
19means that the combined number of licensed video gaming
20locations within a mall exceed half of the separate locations
21within the mall.
22    (i) Undue economic concentration. In addition to
23considering all other requirements under this Act, in deciding
24whether to approve the operation of video gaming terminals by a
25terminal operator in a location, the Board shall consider the
26impact of any economic concentration of such operation of video

 

 

10100SB0690ham003- 745 -LRB101 04451 SMS 61572 a

1gaming terminals. The Board shall not allow a terminal operator
2to operate video gaming terminals if the Board determines such
3operation will result in undue economic concentration. For
4purposes of this Section, "undue economic concentration" means
5that a terminal operator would have such actual or potential
6influence over video gaming terminals in Illinois as to:
7        (1) substantially impede or suppress competition among
8    terminal operators;
9        (2) adversely impact the economic stability of the
10    video gaming industry in Illinois; or
11        (3) negatively impact the purposes of the Video Gaming
12    Act.
13    The Board shall adopt rules concerning undue economic
14concentration with respect to the operation of video gaming
15terminals in Illinois. The rules shall include, but not be
16limited to, (i) limitations on the number of video gaming
17terminals operated by any terminal operator within a defined
18geographic radius and (ii) guidelines on the discontinuation of
19operation of any such video gaming terminals the Board
20determines will cause undue economic concentration.
21    (j) The provisions of the Illinois Antitrust Act are fully
22and equally applicable to the activities of any licensee under
23this Act.
24(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
25eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 

 

 

10100SB0690ham003- 746 -LRB101 04451 SMS 61572 a

1    (230 ILCS 40/30)
2    Sec. 30. Multiple types of licenses prohibited. A video
3gaming terminal manufacturer may not be licensed as a video
4gaming terminal operator or own, manage, or control a licensed
5establishment, licensed truck stop establishment, licensed
6large truck stop establishment, licensed fraternal
7establishment, or licensed veterans establishment, and shall
8be licensed to sell only to persons having a valid
9distributor's license or, if the manufacturer also holds a
10valid distributor's license, to sell, distribute, lease, or
11market to persons having a valid terminal operator's license. A
12video gaming terminal distributor may not be licensed as a
13video gaming terminal operator or own, manage, or control a
14licensed establishment, licensed truck stop establishment,
15licensed large truck stop establishment, licensed fraternal
16establishment, or licensed veterans establishment, and shall
17only contract with a licensed terminal operator. A video gaming
18terminal operator may not be licensed as a video gaming
19terminal manufacturer or distributor or own, manage, or control
20a licensed establishment, licensed truck stop establishment,
21licensed large truck stop establishment, licensed fraternal
22establishment, or licensed veterans establishment, and shall
23be licensed only to contract with licensed distributors and
24licensed establishments, licensed truck stop establishments,
25licensed large truck stop establishments, licensed fraternal
26establishments, and licensed veterans establishments. An owner

 

 

10100SB0690ham003- 747 -LRB101 04451 SMS 61572 a

1or manager of a licensed establishment, licensed truck stop
2establishment, licensed large truck stop establishment,
3licensed fraternal establishment, or licensed veterans
4establishment may not be licensed as a video gaming terminal
5manufacturer, distributor, or operator, and shall only
6contract with a licensed operator to place and service this
7equipment.
8(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
9    (230 ILCS 40/35)
10    Sec. 35. Display of license; confiscation; violation as
11felony.
12    (a) Each video gaming terminal shall be licensed by the
13Board before placement or operation on the premises of a
14licensed establishment, licensed truck stop establishment,
15licensed large truck stop establishment, licensed fraternal
16establishment, or licensed veterans establishment. The license
17of each video gaming terminal shall be maintained at the
18location where the video gaming terminal is operated. Failure
19to do so is a petty offense with a fine not to exceed $100. Any
20licensed establishment, licensed truck stop establishment,
21licensed large truck stop establishment, licensed fraternal
22establishment, or licensed veterans establishment used for the
23conduct of gambling games in violation of this Act shall be
24considered a gambling place in violation of Section 28-3 of the
25Criminal Code of 2012. Every gambling device found in a

 

 

10100SB0690ham003- 748 -LRB101 04451 SMS 61572 a

1licensed establishment, licensed truck stop establishment,
2licensed large truck stop establishment, licensed fraternal
3establishment, or licensed veterans establishment operating
4gambling games in violation of this Act shall be subject to
5seizure, confiscation, and destruction as provided in Section
628-5 of the Criminal Code of 2012. Any license issued under the
7Liquor Control Act of 1934 to any owner or operator of a
8licensed establishment, licensed truck stop establishment,
9licensed large truck stop establishment, licensed fraternal
10establishment, or licensed veterans establishment that
11operates or permits the operation of a video gaming terminal
12within its establishment in violation of this Act shall be
13immediately revoked. No person may own, operate, have in his or
14her possession or custody or under his or her control, or
15permit to be kept in any place under his or her possession or
16control, any device that awards credits and contains a circuit,
17meter, or switch capable of removing and recording the removal
18of credits when the award of credits is dependent upon chance.
19    Nothing in this Section shall be deemed to prohibit the use
20of a game device only if the game device is used in an activity
21that is not gambling under subsection (b) of Section 28-1 of
22the Criminal Code of 2012.
23    A violation of this Section is a Class 4 felony. All
24devices that are owned, operated, or possessed in violation of
25this Section are hereby declared to be public nuisances and
26shall be subject to seizure, confiscation, and destruction as

 

 

10100SB0690ham003- 749 -LRB101 04451 SMS 61572 a

1provided in Section 28-5 of the Criminal Code of 2012.
2    The provisions of this Section do not apply to devices or
3electronic video game terminals licensed pursuant to this Act.
4A video gaming terminal operated for amusement only and bearing
5a valid amusement tax sticker shall not be subject to this
6Section until 30 days after the Board establishes that the
7central communications system is functional.
8    (b) (1) The odds of winning each video game shall be posted
9on or near each video gaming terminal. The manner in which the
10odds are calculated and how they are posted shall be determined
11by the Board by rule.
12    (2) No video gaming terminal licensed under this Act may be
13played except during the legal hours of operation allowed for
14the consumption of alcoholic beverages at the licensed
15establishment, licensed fraternal establishment, or licensed
16veterans establishment. A licensed establishment, licensed
17fraternal establishment, or licensed veterans establishment
18that violates this subsection is subject to termination of its
19license by the Board.
20(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
 
21    (230 ILCS 40/45)
22    Sec. 45. Issuance of license.
23    (a) The burden is upon each applicant to demonstrate his
24suitability for licensure. Each video gaming terminal
25manufacturer, distributor, supplier, operator, handler,

 

 

10100SB0690ham003- 750 -LRB101 04451 SMS 61572 a

1licensed establishment, licensed truck stop establishment,
2licensed large truck stop establishment, licensed fraternal
3establishment, and licensed veterans establishment shall be
4licensed by the Board. The Board may issue or deny a license
5under this Act to any person pursuant to the same criteria set
6forth in Section 9 of the Illinois Riverboat Gambling Act.
7    (a-5) The Board shall not grant a license to a person who
8has facilitated, enabled, or participated in the use of
9coin-operated devices for gambling purposes or who is under the
10significant influence or control of such a person. For the
11purposes of this Act, "facilitated, enabled, or participated in
12the use of coin-operated amusement devices for gambling
13purposes" means that the person has been convicted of any
14violation of Article 28 of the Criminal Code of 1961 or the
15Criminal Code of 2012. If there is pending legal action against
16a person for any such violation, then the Board shall delay the
17licensure of that person until the legal action is resolved.
18    (b) Each person seeking and possessing a license as a video
19gaming terminal manufacturer, distributor, supplier, operator,
20handler, licensed establishment, licensed truck stop
21establishment, licensed large truck stop establishment,
22licensed fraternal establishment, or licensed veterans
23establishment shall submit to a background investigation
24conducted by the Board with the assistance of the State Police
25or other law enforcement. To the extent that the corporate
26structure of the applicant allows, the background

 

 

10100SB0690ham003- 751 -LRB101 04451 SMS 61572 a

1investigation shall include any or all of the following as the
2Board deems appropriate or as provided by rule for each
3category of licensure: (i) each beneficiary of a trust, (ii)
4each partner of a partnership, (iii) each member of a limited
5liability company, (iv) each director and officer of a publicly
6or non-publicly held corporation, (v) each stockholder of a
7non-publicly held corporation, (vi) each stockholder of 5% or
8more of a publicly held corporation, or (vii) each stockholder
9of 5% or more in a parent or subsidiary corporation.
10    (c) Each person seeking and possessing a license as a video
11gaming terminal manufacturer, distributor, supplier, operator,
12handler, licensed establishment, licensed truck stop
13establishment, licensed large truck stop establishment,
14licensed fraternal establishment, or licensed veterans
15establishment shall disclose the identity of every person,
16association, trust, corporation, or limited liability company
17having a greater than 1% direct or indirect pecuniary interest
18in the video gaming terminal operation for which the license is
19sought. If the disclosed entity is a trust, the application
20shall disclose the names and addresses of the beneficiaries; if
21a corporation, the names and addresses of all stockholders and
22directors; if a limited liability company, the names and
23addresses of all members; or if a partnership, the names and
24addresses of all partners, both general and limited.
25    (d) No person may be licensed as a video gaming terminal
26manufacturer, distributor, supplier, operator, handler,

 

 

10100SB0690ham003- 752 -LRB101 04451 SMS 61572 a

1licensed establishment, licensed truck stop establishment,
2licensed large truck stop establishment, licensed fraternal
3establishment, or licensed veterans establishment if that
4person has been found by the Board to:
5        (1) have a background, including a criminal record,
6    reputation, habits, social or business associations, or
7    prior activities that pose a threat to the public interests
8    of the State or to the security and integrity of video
9    gaming;
10        (2) create or enhance the dangers of unsuitable,
11    unfair, or illegal practices, methods, and activities in
12    the conduct of video gaming; or
13        (3) present questionable business practices and
14    financial arrangements incidental to the conduct of video
15    gaming activities.
16    (e) Any applicant for any license under this Act has the
17burden of proving his or her qualifications to the satisfaction
18of the Board. The Board may adopt rules to establish additional
19qualifications and requirements to preserve the integrity and
20security of video gaming in this State.
21    (f) A non-refundable application fee shall be paid at the
22time an application for a license is filed with the Board in
23the following amounts:
24        (1) Manufacturer..........................$5,000
25        (2) Distributor...........................$5,000
26        (3) Terminal operator.....................$5,000

 

 

10100SB0690ham003- 753 -LRB101 04451 SMS 61572 a

1        (4) Supplier..............................$2,500
2        (5) Technician..............................$100
3        (6) Terminal Handler........................$100
4        (7) Licensed establishment, licensed truck stop
5    establishment, licensed large truck stop establishment,
6    licensed fraternal establishment, or licensed
7    veterans establishment...............................$100
8    (g) The Board shall establish an annual fee for each
9license not to exceed the following:
10        (1) Manufacturer.........................$10,000
11        (2) Distributor..........................$10,000
12        (3) Terminal operator.....................$5,000
13        (4) Supplier..............................$2,000
14        (5) Technician..............................$100
15        (6) Licensed establishment, licensed truck stop
16    establishment, licensed large truck stop establishment,
17    licensed fraternal establishment, or licensed
18    veterans establishment..........................$100
19        (7) Video gaming terminal...................$100
20        (8) Terminal Handler............................$100 
21    (h) A terminal operator and a licensed establishment,
22licensed truck stop establishment, licensed large truck stop
23establishment, licensed fraternal establishment, or licensed
24veterans establishment shall equally split the fees specified
25in item (7) of subsection (g).
26(Source: P.A. 100-1152, eff. 12-14-18.)
 

 

 

10100SB0690ham003- 754 -LRB101 04451 SMS 61572 a

1    (230 ILCS 40/55)
2    Sec. 55. Precondition for licensed location. In all cases
3of application for a licensed location, to operate a video
4gaming terminal, each licensed establishment, licensed
5fraternal establishment, or licensed veterans establishment
6shall possess a valid liquor license issued by the Illinois
7Liquor Control Commission in effect at the time of application
8and at all times thereafter during which a video gaming
9terminal is made available to the public for play at that
10location. Video gaming terminals in a licensed location shall
11be operated only during the same hours of operation generally
12permitted to holders of a license under the Liquor Control Act
13of 1934 within the unit of local government in which they are
14located. A licensed truck stop establishment or licensed large
15truck stop establishment that does not hold a liquor license
16may operate video gaming terminals on a continuous basis. A
17licensed fraternal establishment or licensed veterans
18establishment that does not hold a liquor license may operate
19video gaming terminals if (i) the establishment is located in a
20county with a population between 6,500 and 7,000, based on the
212000 U.S. Census, (ii) the county prohibits by ordinance the
22sale of alcohol, and (iii) the establishment is in a portion of
23the county where the sale of alcohol is prohibited. A licensed
24fraternal establishment or licensed veterans establishment
25that does not hold a liquor license may operate video gaming

 

 

10100SB0690ham003- 755 -LRB101 04451 SMS 61572 a

1terminals if (i) the establishment is located in a municipality
2within a county with a population between 8,500 and 9,000 based
3on the 2000 U.S. Census and (ii) the municipality or county
4prohibits or limits the sale of alcohol by ordinance in a way
5that prohibits the establishment from selling alcohol.
6(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
797-594, eff. 8-26-11.)
 
8    (230 ILCS 40/58)
9    Sec. 58. Location of terminals. Video gaming terminals
10must be located in an area restricted to persons over 21 years
11of age the entrance to which is within the view of at least one
12employee, who is over 21 years of age, of the establishment in
13which they are located. The placement of video gaming terminals
14in licensed establishments, licensed truck stop
15establishments, licensed large truck stop establishments,
16licensed fraternal establishments, and licensed veterans
17establishments shall be subject to the rules promulgated by the
18Board pursuant to the Illinois Administrative Procedure Act.
19(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
20    (230 ILCS 40/60)
21    Sec. 60. Imposition and distribution of tax.
22    (a) A tax of 30% is imposed on net terminal income and
23shall be collected by the Board.
24    (b) Of the tax collected under this subsection (a) Section,

 

 

10100SB0690ham003- 756 -LRB101 04451 SMS 61572 a

1five-sixths shall be deposited into the Capital Projects Fund
2and one-sixth shall be deposited into the Local Government
3Video Gaming Distributive Fund.
4    (b) Beginning on July 1, 2019, an additional tax of 3% is
5imposed on net terminal income and shall be collected by the
6Board.
7    Beginning on July 1, 2020, an additional tax of 1% is
8imposed on net terminal income and shall be collected by the
9Board.
10    The tax collected under this subsection (b) shall be
11deposited into the Capital Projects Fund.
12    (c) Revenues generated from the play of video gaming
13terminals shall be deposited by the terminal operator, who is
14responsible for tax payments, in a specially created, separate
15bank account maintained by the video gaming terminal operator
16to allow for electronic fund transfers of moneys for tax
17payment.
18    (d) Each licensed establishment, licensed truck stop
19establishment, licensed large truck stop establishment,
20licensed fraternal establishment, and licensed veterans
21establishment shall maintain an adequate video gaming fund,
22with the amount to be determined by the Board.
23    (e) The State's percentage of net terminal income shall be
24reported and remitted to the Board within 15 days after the
2515th day of each month and within 15 days after the end of each
26month by the video terminal operator. A video terminal operator

 

 

10100SB0690ham003- 757 -LRB101 04451 SMS 61572 a

1who falsely reports or fails to report the amount due required
2by this Section is guilty of a Class 4 felony and is subject to
3termination of his or her license by the Board. Each video
4terminal operator shall keep a record of net terminal income in
5such form as the Board may require. All payments not remitted
6when due shall be paid together with a penalty assessment on
7the unpaid balance at a rate of 1.5% per month.
8(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
9    (230 ILCS 40/79)
10    Sec. 79. Investigators. Investigators appointed by the
11Board pursuant to the powers conferred upon the Board by
12paragraph (20.6) of subsection (c) of Section 5 of the Illinois
13Riverboat Gambling Act and Section 80 of this Act shall have
14authority to conduct investigations, searches, seizures,
15arrests, and other duties imposed under this Act and the
16Illinois Riverboat Gambling Act, as deemed necessary by the
17Board. These investigators have and may exercise all of the
18rights and powers of peace officers, provided that these powers
19shall be (1) limited to offenses or violations occurring or
20committed in connection with conduct subject to this Act,
21including, but not limited to, the manufacture, distribution,
22supply, operation, placement, service, maintenance, or play of
23video gaming terminals and the distribution of profits and
24collection of revenues resulting from such play, and (2)
25exercised, to the fullest extent practicable, in cooperation

 

 

10100SB0690ham003- 758 -LRB101 04451 SMS 61572 a

1with the local police department of the applicable municipality
2or, if these powers are exercised outside the boundaries of an
3incorporated municipality or within a municipality that does
4not have its own police department, in cooperation with the
5police department whose jurisdiction encompasses the
6applicable locality.
7(Source: P.A. 97-809, eff. 7-13-12.)
 
8    (230 ILCS 40/80)
9    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
10The provisions of the Illinois Riverboat Gambling Act, and all
11rules promulgated thereunder, shall apply to the Video Gaming
12Act, except where there is a conflict between the 2 Acts. In
13the event of a conflict between the 2 Acts, the provisions of
14the Illinois Gambling Act shall prevail. All current supplier
15licensees under the Illinois Riverboat Gambling Act shall be
16entitled to licensure under the Video Gaming Act as
17manufacturers, distributors, or suppliers without additional
18Board investigation or approval, except by vote of the Board;
19however, they are required to pay application and annual fees
20under this Act. All provisions of the Uniform Penalty and
21Interest Act shall apply, as far as practicable, to the subject
22matter of this Act to the same extent as if such provisions
23were included herein.
24(Source: P.A. 100-1152, eff. 12-14-18.)
 

 

 

10100SB0690ham003- 759 -LRB101 04451 SMS 61572 a

1    Section 35-65. The Liquor Control Act of 1934 is amended by
2changing Sections 5-1 and 6-30 as follows:
 
3    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
4    Sec. 5-1. Licenses issued by the Illinois Liquor Control
5Commission shall be of the following classes:
6    (a) Manufacturer's license - Class 1. Distiller, Class 2.
7Rectifier, Class 3. Brewer, Class 4. First Class Wine
8Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
9First Class Winemaker, Class 7. Second Class Winemaker, Class
108. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1110. Class 1 Brewer, Class 11. Class 2 Brewer,
12    (b) Distributor's license,
13    (c) Importing Distributor's license,
14    (d) Retailer's license,
15    (e) Special Event Retailer's license (not-for-profit),
16    (f) Railroad license,
17    (g) Boat license,
18    (h) Non-Beverage User's license,
19    (i) Wine-maker's premises license,
20    (j) Airplane license,
21    (k) Foreign importer's license,
22    (l) Broker's license,
23    (m) Non-resident dealer's license,
24    (n) Brew Pub license,
25    (o) Auction liquor license,

 

 

10100SB0690ham003- 760 -LRB101 04451 SMS 61572 a

1    (p) Caterer retailer license,
2    (q) Special use permit license,
3    (r) Winery shipper's license,
4    (s) Craft distiller tasting permit,
5    (t) Brewer warehouse permit.
6    No person, firm, partnership, corporation, or other legal
7business entity that is engaged in the manufacturing of wine
8may concurrently obtain and hold a wine-maker's license and a
9wine manufacturer's license.
10    (a) A manufacturer's license shall allow the manufacture,
11importation in bulk, storage, distribution and sale of
12alcoholic liquor to persons without the State, as may be
13permitted by law and to licensees in this State as follows:
14    Class 1. A Distiller may make sales and deliveries of
15alcoholic liquor to distillers, rectifiers, importing
16distributors, distributors and non-beverage users and to no
17other licensees.
18    Class 2. A Rectifier, who is not a distiller, as defined
19herein, may make sales and deliveries of alcoholic liquor to
20rectifiers, importing distributors, distributors, retailers
21and non-beverage users and to no other licensees.
22    Class 3. A Brewer may make sales and deliveries of beer to
23importing distributors and distributors and may make sales as
24authorized under subsection (e) of Section 6-4 of this Act.
25    Class 4. A first class wine-manufacturer may make sales and
26deliveries of up to 50,000 gallons of wine to manufacturers,

 

 

10100SB0690ham003- 761 -LRB101 04451 SMS 61572 a

1importing distributors and distributors, and to no other
2licensees.
3    Class 5. A second class Wine manufacturer may make sales
4and deliveries of more than 50,000 gallons of wine to
5manufacturers, importing distributors and distributors and to
6no other licensees.
7    Class 6. A first-class wine-maker's license shall allow the
8manufacture of up to 50,000 gallons of wine per year, and the
9storage and sale of such wine to distributors in the State and
10to persons without the State, as may be permitted by law. A
11person who, prior to June 1, 2008 (the effective date of Public
12Act 95-634), is a holder of a first-class wine-maker's license
13and annually produces more than 25,000 gallons of its own wine
14and who distributes its wine to licensed retailers shall cease
15this practice on or before July 1, 2008 in compliance with
16Public Act 95-634.
17    Class 7. A second-class wine-maker's license shall allow
18the manufacture of between 50,000 and 150,000 gallons of wine
19per year, and the storage and sale of such wine to distributors
20in this State and to persons without the State, as may be
21permitted by law. A person who, prior to June 1, 2008 (the
22effective date of Public Act 95-634), is a holder of a
23second-class wine-maker's license and annually produces more
24than 25,000 gallons of its own wine and who distributes its
25wine to licensed retailers shall cease this practice on or
26before July 1, 2008 in compliance with Public Act 95-634.

 

 

10100SB0690ham003- 762 -LRB101 04451 SMS 61572 a

1    Class 8. A limited wine-manufacturer may make sales and
2deliveries not to exceed 40,000 gallons of wine per year to
3distributors, and to non-licensees in accordance with the
4provisions of this Act.
5    Class 9. A craft distiller license shall allow the
6manufacture of up to 100,000 gallons of spirits by distillation
7per year and the storage of such spirits. If a craft distiller
8licensee, including a craft distiller licensee who holds more
9than one craft distiller license, is not affiliated with any
10other manufacturer of spirits, then the craft distiller
11licensee may sell such spirits to distributors in this State
12and up to 2,500 gallons of such spirits to non-licensees to the
13extent permitted by any exemption approved by the Commission
14pursuant to Section 6-4 of this Act. A craft distiller license
15holder may store such spirits at a non-contiguous licensed
16location, but at no time shall a craft distiller license holder
17directly or indirectly produce in the aggregate more than
18100,000 gallons of spirits per year.
19    A craft distiller licensee may hold more than one craft
20distiller's license. However, a craft distiller that holds more
21than one craft distiller license shall not manufacture, in the
22aggregate, more than 100,000 gallons of spirits by distillation
23per year and shall not sell, in the aggregate, more than 2,500
24gallons of such spirits to non-licensees in accordance with an
25exemption approved by the State Commission pursuant to Section
266-4 of this Act.

 

 

10100SB0690ham003- 763 -LRB101 04451 SMS 61572 a

1    Any craft distiller licensed under this Act who on July 28,
22010 (the effective date of Public Act 96-1367) was licensed as
3a distiller and manufactured no more spirits than permitted by
4this Section shall not be required to pay the initial licensing
5fee.
6    Class 10. A class 1 brewer license, which may only be
7issued to a licensed brewer or licensed non-resident dealer,
8shall allow the manufacture of up to 930,000 gallons of beer
9per year provided that the class 1 brewer licensee does not
10manufacture more than a combined 930,000 gallons of beer per
11year and is not a member of or affiliated with, directly or
12indirectly, a manufacturer that produces more than 930,000
13gallons of beer per year or any other alcoholic liquor. A class
141 brewer licensee may make sales and deliveries to importing
15distributors and distributors and to retail licensees in
16accordance with the conditions set forth in paragraph (18) of
17subsection (a) of Section 3-12 of this Act. If the State
18Commission provides prior approval, a class 1 brewer may
19annually transfer up to 930,000 gallons of beer manufactured by
20that class 1 brewer to the premises of a licensed class 1
21brewer wholly owned and operated by the same licensee.
22    Class 11. A class 2 brewer license, which may only be
23issued to a licensed brewer or licensed non-resident dealer,
24shall allow the manufacture of up to 3,720,000 gallons of beer
25per year provided that the class 2 brewer licensee does not
26manufacture more than a combined 3,720,000 gallons of beer per

 

 

10100SB0690ham003- 764 -LRB101 04451 SMS 61572 a

1year and is not a member of or affiliated with, directly or
2indirectly, a manufacturer that produces more than 3,720,000
3gallons of beer per year or any other alcoholic liquor. A class
42 brewer licensee may make sales and deliveries to importing
5distributors and distributors, but shall not make sales or
6deliveries to any other licensee. If the State Commission
7provides prior approval, a class 2 brewer licensee may annually
8transfer up to 3,720,000 gallons of beer manufactured by that
9class 2 brewer licensee to the premises of a licensed class 2
10brewer wholly owned and operated by the same licensee.
11    A class 2 brewer may transfer beer to a brew pub wholly
12owned and operated by the class 2 brewer subject to the
13following limitations and restrictions: (i) the transfer shall
14not annually exceed more than 31,000 gallons; (ii) the annual
15amount transferred shall reduce the brew pub's annual permitted
16production limit; (iii) all beer transferred shall be subject
17to Article VIII of this Act; (iv) a written record shall be
18maintained by the brewer and brew pub specifying the amount,
19date of delivery, and receipt of the product by the brew pub;
20and (v) the brew pub shall be located no farther than 80 miles
21from the class 2 brewer's licensed location.
22    A class 2 brewer shall, prior to transferring beer to a
23brew pub wholly owned by the class 2 brewer, furnish a written
24notice to the State Commission of intent to transfer beer
25setting forth the name and address of the brew pub and shall
26annually submit to the State Commission a verified report

 

 

10100SB0690ham003- 765 -LRB101 04451 SMS 61572 a

1identifying the total gallons of beer transferred to the brew
2pub wholly owned by the class 2 brewer.
3    (a-1) A manufacturer which is licensed in this State to
4make sales or deliveries of alcoholic liquor to licensed
5distributors or importing distributors and which enlists
6agents, representatives, or individuals acting on its behalf
7who contact licensed retailers on a regular and continual basis
8in this State must register those agents, representatives, or
9persons acting on its behalf with the State Commission.
10    Registration of agents, representatives, or persons acting
11on behalf of a manufacturer is fulfilled by submitting a form
12to the Commission. The form shall be developed by the
13Commission and shall include the name and address of the
14applicant, the name and address of the manufacturer he or she
15represents, the territory or areas assigned to sell to or
16discuss pricing terms of alcoholic liquor, and any other
17questions deemed appropriate and necessary. All statements in
18the forms required to be made by law or by rule shall be deemed
19material, and any person who knowingly misstates any material
20fact under oath in an application is guilty of a Class B
21misdemeanor. Fraud, misrepresentation, false statements,
22misleading statements, evasions, or suppression of material
23facts in the securing of a registration are grounds for
24suspension or revocation of the registration. The State
25Commission shall post a list of registered agents on the
26Commission's website.

 

 

10100SB0690ham003- 766 -LRB101 04451 SMS 61572 a

1    (b) A distributor's license shall allow the wholesale
2purchase and storage of alcoholic liquors and sale of alcoholic
3liquors to licensees in this State and to persons without the
4State, as may be permitted by law, and the sale of beer, cider,
5or both beer and cider to brewers, class 1 brewers, and class 2
6brewers that, pursuant to subsection (e) of Section 6-4 of this
7Act, sell beer, cider, or both beer and cider to non-licensees
8at their breweries. No person licensed as a distributor shall
9be granted a non-resident dealer's license.
10    (c) An importing distributor's license may be issued to and
11held by those only who are duly licensed distributors, upon the
12filing of an application by a duly licensed distributor, with
13the Commission and the Commission shall, without the payment of
14any fee, immediately issue such importing distributor's
15license to the applicant, which shall allow the importation of
16alcoholic liquor by the licensee into this State from any point
17in the United States outside this State, and the purchase of
18alcoholic liquor in barrels, casks or other bulk containers and
19the bottling of such alcoholic liquors before resale thereof,
20but all bottles or containers so filled shall be sealed,
21labeled, stamped and otherwise made to comply with all
22provisions, rules and regulations governing manufacturers in
23the preparation and bottling of alcoholic liquors. The
24importing distributor's license shall permit such licensee to
25purchase alcoholic liquor from Illinois licensed non-resident
26dealers and foreign importers only. No person licensed as an

 

 

10100SB0690ham003- 767 -LRB101 04451 SMS 61572 a

1importing distributor shall be granted a non-resident dealer's
2license.
3    (d) A retailer's license shall allow the licensee to sell
4and offer for sale at retail, only in the premises specified in
5the license, alcoholic liquor for use or consumption, but not
6for resale in any form. Nothing in Public Act 95-634 shall
7deny, limit, remove, or restrict the ability of a holder of a
8retailer's license to transfer, deliver, or ship alcoholic
9liquor to the purchaser for use or consumption subject to any
10applicable local law or ordinance. Any retail license issued to
11a manufacturer shall only permit the manufacturer to sell beer
12at retail on the premises actually occupied by the
13manufacturer. For the purpose of further describing the type of
14business conducted at a retail licensed premises, a retailer's
15licensee may be designated by the State Commission as (i) an on
16premise consumption retailer, (ii) an off premise sale
17retailer, or (iii) a combined on premise consumption and off
18premise sale retailer.
19    Notwithstanding any other provision of this subsection
20(d), a retail licensee may sell alcoholic liquors to a special
21event retailer licensee for resale to the extent permitted
22under subsection (e).
23    (e) A special event retailer's license (not-for-profit)
24shall permit the licensee to purchase alcoholic liquors from an
25Illinois licensed distributor (unless the licensee purchases
26less than $500 of alcoholic liquors for the special event, in

 

 

10100SB0690ham003- 768 -LRB101 04451 SMS 61572 a

1which case the licensee may purchase the alcoholic liquors from
2a licensed retailer) and shall allow the licensee to sell and
3offer for sale, at retail, alcoholic liquors for use or
4consumption, but not for resale in any form and only at the
5location and on the specific dates designated for the special
6event in the license. An applicant for a special event retailer
7license must (i) furnish with the application: (A) a resale
8number issued under Section 2c of the Retailers' Occupation Tax
9Act or evidence that the applicant is registered under Section
102a of the Retailers' Occupation Tax Act, (B) a current, valid
11exemption identification number issued under Section 1g of the
12Retailers' Occupation Tax Act, and a certification to the
13Commission that the purchase of alcoholic liquors will be a
14tax-exempt purchase, or (C) a statement that the applicant is
15not registered under Section 2a of the Retailers' Occupation
16Tax Act, does not hold a resale number under Section 2c of the
17Retailers' Occupation Tax Act, and does not hold an exemption
18number under Section 1g of the Retailers' Occupation Tax Act,
19in which event the Commission shall set forth on the special
20event retailer's license a statement to that effect; (ii)
21submit with the application proof satisfactory to the State
22Commission that the applicant will provide dram shop liability
23insurance in the maximum limits; and (iii) show proof
24satisfactory to the State Commission that the applicant has
25obtained local authority approval.
26    Nothing in this Act prohibits an Illinois licensed

 

 

10100SB0690ham003- 769 -LRB101 04451 SMS 61572 a

1distributor from offering credit or a refund for unused,
2salable alcoholic liquors to a holder of a special event
3retailer's license or from the special event retailer's
4licensee from accepting the credit or refund of alcoholic
5liquors at the conclusion of the event specified in the
6license.
7    (f) A railroad license shall permit the licensee to import
8alcoholic liquors into this State from any point in the United
9States outside this State and to store such alcoholic liquors
10in this State; to make wholesale purchases of alcoholic liquors
11directly from manufacturers, foreign importers, distributors
12and importing distributors from within or outside this State;
13and to store such alcoholic liquors in this State; provided
14that the above powers may be exercised only in connection with
15the importation, purchase or storage of alcoholic liquors to be
16sold or dispensed on a club, buffet, lounge or dining car
17operated on an electric, gas or steam railway in this State;
18and provided further, that railroad licensees exercising the
19above powers shall be subject to all provisions of Article VIII
20of this Act as applied to importing distributors. A railroad
21license shall also permit the licensee to sell or dispense
22alcoholic liquors on any club, buffet, lounge or dining car
23operated on an electric, gas or steam railway regularly
24operated by a common carrier in this State, but shall not
25permit the sale for resale of any alcoholic liquors to any
26licensee within this State. A license shall be obtained for

 

 

10100SB0690ham003- 770 -LRB101 04451 SMS 61572 a

1each car in which such sales are made.
2    (g) A boat license shall allow the sale of alcoholic liquor
3in individual drinks, on any passenger boat regularly operated
4as a common carrier on navigable waters in this State or on any
5riverboat operated under the Illinois Riverboat Gambling Act,
6which boat or riverboat maintains a public dining room or
7restaurant thereon.
8    (h) A non-beverage user's license shall allow the licensee
9to purchase alcoholic liquor from a licensed manufacturer or
10importing distributor, without the imposition of any tax upon
11the business of such licensed manufacturer or importing
12distributor as to such alcoholic liquor to be used by such
13licensee solely for the non-beverage purposes set forth in
14subsection (a) of Section 8-1 of this Act, and such licenses
15shall be divided and classified and shall permit the purchase,
16possession and use of limited and stated quantities of
17alcoholic liquor as follows:
18Class 1, not to exceed ......................... 500 gallons
19Class 2, not to exceed ....................... 1,000 gallons
20Class 3, not to exceed ....................... 5,000 gallons
21Class 4, not to exceed ...................... 10,000 gallons
22Class 5, not to exceed ....................... 50,000 gallons
23    (i) A wine-maker's premises license shall allow a licensee
24that concurrently holds a first-class wine-maker's license to
25sell and offer for sale at retail in the premises specified in
26such license not more than 50,000 gallons of the first-class

 

 

10100SB0690ham003- 771 -LRB101 04451 SMS 61572 a

1wine-maker's wine that is made at the first-class wine-maker's
2licensed premises per year for use or consumption, but not for
3resale in any form. A wine-maker's premises license shall allow
4a licensee who concurrently holds a second-class wine-maker's
5license to sell and offer for sale at retail in the premises
6specified in such license up to 100,000 gallons of the
7second-class wine-maker's wine that is made at the second-class
8wine-maker's licensed premises per year for use or consumption
9but not for resale in any form. A wine-maker's premises license
10shall allow a licensee that concurrently holds a first-class
11wine-maker's license or a second-class wine-maker's license to
12sell and offer for sale at retail at the premises specified in
13the wine-maker's premises license, for use or consumption but
14not for resale in any form, any beer, wine, and spirits
15purchased from a licensed distributor. Upon approval from the
16State Commission, a wine-maker's premises license shall allow
17the licensee to sell and offer for sale at (i) the wine-maker's
18licensed premises and (ii) at up to 2 additional locations for
19use and consumption and not for resale. Each location shall
20require additional licensing per location as specified in
21Section 5-3 of this Act. A wine-maker's premises licensee shall
22secure liquor liability insurance coverage in an amount at
23least equal to the maximum liability amounts set forth in
24subsection (a) of Section 6-21 of this Act.
25    (j) An airplane license shall permit the licensee to import
26alcoholic liquors into this State from any point in the United

 

 

10100SB0690ham003- 772 -LRB101 04451 SMS 61572 a

1States outside this State and to store such alcoholic liquors
2in this State; to make wholesale purchases of alcoholic liquors
3directly from manufacturers, foreign importers, distributors
4and importing distributors from within or outside this State;
5and to store such alcoholic liquors in this State; provided
6that the above powers may be exercised only in connection with
7the importation, purchase or storage of alcoholic liquors to be
8sold or dispensed on an airplane; and provided further, that
9airplane licensees exercising the above powers shall be subject
10to all provisions of Article VIII of this Act as applied to
11importing distributors. An airplane licensee shall also permit
12the sale or dispensing of alcoholic liquors on any passenger
13airplane regularly operated by a common carrier in this State,
14but shall not permit the sale for resale of any alcoholic
15liquors to any licensee within this State. A single airplane
16license shall be required of an airline company if liquor
17service is provided on board aircraft in this State. The annual
18fee for such license shall be as determined in Section 5-3.
19    (k) A foreign importer's license shall permit such licensee
20to purchase alcoholic liquor from Illinois licensed
21non-resident dealers only, and to import alcoholic liquor other
22than in bulk from any point outside the United States and to
23sell such alcoholic liquor to Illinois licensed importing
24distributors and to no one else in Illinois; provided that (i)
25the foreign importer registers with the State Commission every
26brand of alcoholic liquor that it proposes to sell to Illinois

 

 

10100SB0690ham003- 773 -LRB101 04451 SMS 61572 a

1licensees during the license period, (ii) the foreign importer
2complies with all of the provisions of Section 6-9 of this Act
3with respect to registration of such Illinois licensees as may
4be granted the right to sell such brands at wholesale, and
5(iii) the foreign importer complies with the provisions of
6Sections 6-5 and 6-6 of this Act to the same extent that these
7provisions apply to manufacturers.
8    (l) (i) A broker's license shall be required of all persons
9who solicit orders for, offer to sell or offer to supply
10alcoholic liquor to retailers in the State of Illinois, or who
11offer to retailers to ship or cause to be shipped or to make
12contact with distillers, rectifiers, brewers or manufacturers
13or any other party within or without the State of Illinois in
14order that alcoholic liquors be shipped to a distributor,
15importing distributor or foreign importer, whether such
16solicitation or offer is consummated within or without the
17State of Illinois.
18    No holder of a retailer's license issued by the Illinois
19Liquor Control Commission shall purchase or receive any
20alcoholic liquor, the order for which was solicited or offered
21for sale to such retailer by a broker unless the broker is the
22holder of a valid broker's license.
23    The broker shall, upon the acceptance by a retailer of the
24broker's solicitation of an order or offer to sell or supply or
25deliver or have delivered alcoholic liquors, promptly forward
26to the Illinois Liquor Control Commission a notification of

 

 

10100SB0690ham003- 774 -LRB101 04451 SMS 61572 a

1said transaction in such form as the Commission may by
2regulations prescribe.
3    (ii) A broker's license shall be required of a person
4within this State, other than a retail licensee, who, for a fee
5or commission, promotes, solicits, or accepts orders for
6alcoholic liquor, for use or consumption and not for resale, to
7be shipped from this State and delivered to residents outside
8of this State by an express company, common carrier, or
9contract carrier. This Section does not apply to any person who
10promotes, solicits, or accepts orders for wine as specifically
11authorized in Section 6-29 of this Act.
12    A broker's license under this subsection (l) shall not
13entitle the holder to buy or sell any alcoholic liquors for his
14own account or to take or deliver title to such alcoholic
15liquors.
16    This subsection (l) shall not apply to distributors,
17employees of distributors, or employees of a manufacturer who
18has registered the trademark, brand or name of the alcoholic
19liquor pursuant to Section 6-9 of this Act, and who regularly
20sells such alcoholic liquor in the State of Illinois only to
21its registrants thereunder.
22    Any agent, representative, or person subject to
23registration pursuant to subsection (a-1) of this Section shall
24not be eligible to receive a broker's license.
25    (m) A non-resident dealer's license shall permit such
26licensee to ship into and warehouse alcoholic liquor into this

 

 

10100SB0690ham003- 775 -LRB101 04451 SMS 61572 a

1State from any point outside of this State, and to sell such
2alcoholic liquor to Illinois licensed foreign importers and
3importing distributors and to no one else in this State;
4provided that (i) said non-resident dealer shall register with
5the Illinois Liquor Control Commission each and every brand of
6alcoholic liquor which it proposes to sell to Illinois
7licensees during the license period, (ii) it shall comply with
8all of the provisions of Section 6-9 hereof with respect to
9registration of such Illinois licensees as may be granted the
10right to sell such brands at wholesale by duly filing such
11registration statement, thereby authorizing the non-resident
12dealer to proceed to sell such brands at wholesale, and (iii)
13the non-resident dealer shall comply with the provisions of
14Sections 6-5 and 6-6 of this Act to the same extent that these
15provisions apply to manufacturers. No person licensed as a
16non-resident dealer shall be granted a distributor's or
17importing distributor's license.
18    (n) A brew pub license shall allow the licensee to only (i)
19manufacture up to 155,000 gallons of beer per year only on the
20premises specified in the license, (ii) make sales of the beer
21manufactured on the premises or, with the approval of the
22Commission, beer manufactured on another brew pub licensed
23premises that is wholly owned and operated by the same licensee
24to importing distributors, distributors, and to non-licensees
25for use and consumption, (iii) store the beer upon the
26premises, (iv) sell and offer for sale at retail from the

 

 

10100SB0690ham003- 776 -LRB101 04451 SMS 61572 a

1licensed premises for off-premises consumption no more than
2155,000 gallons per year so long as such sales are only made
3in-person, (v) sell and offer for sale at retail for use and
4consumption on the premises specified in the license any form
5of alcoholic liquor purchased from a licensed distributor or
6importing distributor, and (vi) with the prior approval of the
7Commission, annually transfer no more than 155,000 gallons of
8beer manufactured on the premises to a licensed brew pub wholly
9owned and operated by the same licensee.
10    A brew pub licensee shall not under any circumstance sell
11or offer for sale beer manufactured by the brew pub licensee to
12retail licensees.
13    A person who holds a class 2 brewer license may
14simultaneously hold a brew pub license if the class 2 brewer
15(i) does not, under any circumstance, sell or offer for sale
16beer manufactured by the class 2 brewer to retail licensees;
17(ii) does not hold more than 3 brew pub licenses in this State;
18(iii) does not manufacture more than a combined 3,720,000
19gallons of beer per year, including the beer manufactured at
20the brew pub; and (iv) is not a member of or affiliated with,
21directly or indirectly, a manufacturer that produces more than
223,720,000 gallons of beer per year or any other alcoholic
23liquor.
24    Notwithstanding any other provision of this Act, a licensed
25brewer, class 2 brewer, or non-resident dealer who before July
261, 2015 manufactured less than 3,720,000 gallons of beer per

 

 

10100SB0690ham003- 777 -LRB101 04451 SMS 61572 a

1year and held a brew pub license on or before July 1, 2015 may
2(i) continue to qualify for and hold that brew pub license for
3the licensed premises and (ii) manufacture more than 3,720,000
4gallons of beer per year and continue to qualify for and hold
5that brew pub license if that brewer, class 2 brewer, or
6non-resident dealer does not simultaneously hold a class 1
7brewer license and is not a member of or affiliated with,
8directly or indirectly, a manufacturer that produces more than
93,720,000 gallons of beer per year or that produces any other
10alcoholic liquor.
11    (o) A caterer retailer license shall allow the holder to
12serve alcoholic liquors as an incidental part of a food service
13that serves prepared meals which excludes the serving of snacks
14as the primary meal, either on or off-site whether licensed or
15unlicensed.
16    (p) An auction liquor license shall allow the licensee to
17sell and offer for sale at auction wine and spirits for use or
18consumption, or for resale by an Illinois liquor licensee in
19accordance with provisions of this Act. An auction liquor
20license will be issued to a person and it will permit the
21auction liquor licensee to hold the auction anywhere in the
22State. An auction liquor license must be obtained for each
23auction at least 14 days in advance of the auction date.
24    (q) A special use permit license shall allow an Illinois
25licensed retailer to transfer a portion of its alcoholic liquor
26inventory from its retail licensed premises to the premises

 

 

10100SB0690ham003- 778 -LRB101 04451 SMS 61572 a

1specified in the license hereby created, and to sell or offer
2for sale at retail, only in the premises specified in the
3license hereby created, the transferred alcoholic liquor for
4use or consumption, but not for resale in any form. A special
5use permit license may be granted for the following time
6periods: one day or less; 2 or more days to a maximum of 15 days
7per location in any 12-month period. An applicant for the
8special use permit license must also submit with the
9application proof satisfactory to the State Commission that the
10applicant will provide dram shop liability insurance to the
11maximum limits and have local authority approval.
12    (r) A winery shipper's license shall allow a person with a
13first-class or second-class wine manufacturer's license, a
14first-class or second-class wine-maker's license, or a limited
15wine manufacturer's license or who is licensed to make wine
16under the laws of another state to ship wine made by that
17licensee directly to a resident of this State who is 21 years
18of age or older for that resident's personal use and not for
19resale. Prior to receiving a winery shipper's license, an
20applicant for the license must provide the Commission with a
21true copy of its current license in any state in which it is
22licensed as a manufacturer of wine. An applicant for a winery
23shipper's license must also complete an application form that
24provides any other information the Commission deems necessary.
25The application form shall include all addresses from which the
26applicant for a winery shipper's license intends to ship wine,

 

 

10100SB0690ham003- 779 -LRB101 04451 SMS 61572 a

1including the name and address of any third party, except for a
2common carrier, authorized to ship wine on behalf of the
3manufacturer. The application form shall include an
4acknowledgement consenting to the jurisdiction of the
5Commission, the Illinois Department of Revenue, and the courts
6of this State concerning the enforcement of this Act and any
7related laws, rules, and regulations, including authorizing
8the Department of Revenue and the Commission to conduct audits
9for the purpose of ensuring compliance with Public Act 95-634,
10and an acknowledgement that the wine manufacturer is in
11compliance with Section 6-2 of this Act. Any third party,
12except for a common carrier, authorized to ship wine on behalf
13of a first-class or second-class wine manufacturer's licensee,
14a first-class or second-class wine-maker's licensee, a limited
15wine manufacturer's licensee, or a person who is licensed to
16make wine under the laws of another state shall also be
17disclosed by the winery shipper's licensee, and a copy of the
18written appointment of the third-party wine provider, except
19for a common carrier, to the wine manufacturer shall be filed
20with the State Commission as a supplement to the winery
21shipper's license application or any renewal thereof. The
22winery shipper's license holder shall affirm under penalty of
23perjury, as part of the winery shipper's license application or
24renewal, that he or she only ships wine, either directly or
25indirectly through a third-party provider, from the licensee's
26own production.

 

 

10100SB0690ham003- 780 -LRB101 04451 SMS 61572 a

1    Except for a common carrier, a third-party provider
2shipping wine on behalf of a winery shipper's license holder is
3the agent of the winery shipper's license holder and, as such,
4a winery shipper's license holder is responsible for the acts
5and omissions of the third-party provider acting on behalf of
6the license holder. A third-party provider, except for a common
7carrier, that engages in shipping wine into Illinois on behalf
8of a winery shipper's license holder shall consent to the
9jurisdiction of the State Commission and the State. Any
10third-party, except for a common carrier, holding such an
11appointment shall, by February 1 of each calendar year and upon
12request by the State Commission or the Department of Revenue,
13file with the State Commission a statement detailing each
14shipment made to an Illinois resident. The statement shall
15include the name and address of the third-party provider filing
16the statement, the time period covered by the statement, and
17the following information:
18        (1) the name, address, and license number of the winery
19    shipper on whose behalf the shipment was made;
20        (2) the quantity of the products delivered; and
21        (3) the date and address of the shipment.
22If the Department of Revenue or the State Commission requests a
23statement under this paragraph, the third-party provider must
24provide that statement no later than 30 days after the request
25is made. Any books, records, supporting papers, and documents
26containing information and data relating to a statement under

 

 

10100SB0690ham003- 781 -LRB101 04451 SMS 61572 a

1this paragraph shall be kept and preserved for a period of 3
2years, unless their destruction sooner is authorized, in
3writing, by the Director of Revenue, and shall be open and
4available to inspection by the Director of Revenue or the State
5Commission or any duly authorized officer, agent, or employee
6of the State Commission or the Department of Revenue, at all
7times during business hours of the day. Any person who violates
8any provision of this paragraph or any rule of the State
9Commission for the administration and enforcement of the
10provisions of this paragraph is guilty of a Class C
11misdemeanor. In case of a continuing violation, each day's
12continuance thereof shall be a separate and distinct offense.
13    The State Commission shall adopt rules as soon as
14practicable to implement the requirements of Public Act 99-904
15and shall adopt rules prohibiting any such third-party
16appointment of a third-party provider, except for a common
17carrier, that has been deemed by the State Commission to have
18violated the provisions of this Act with regard to any winery
19shipper licensee.
20    A winery shipper licensee must pay to the Department of
21Revenue the State liquor gallonage tax under Section 8-1 for
22all wine that is sold by the licensee and shipped to a person
23in this State. For the purposes of Section 8-1, a winery
24shipper licensee shall be taxed in the same manner as a
25manufacturer of wine. A licensee who is not otherwise required
26to register under the Retailers' Occupation Tax Act must

 

 

10100SB0690ham003- 782 -LRB101 04451 SMS 61572 a

1register under the Use Tax Act to collect and remit use tax to
2the Department of Revenue for all gallons of wine that are sold
3by the licensee and shipped to persons in this State. If a
4licensee fails to remit the tax imposed under this Act in
5accordance with the provisions of Article VIII of this Act, the
6winery shipper's license shall be revoked in accordance with
7the provisions of Article VII of this Act. If a licensee fails
8to properly register and remit tax under the Use Tax Act or the
9Retailers' Occupation Tax Act for all wine that is sold by the
10winery shipper and shipped to persons in this State, the winery
11shipper's license shall be revoked in accordance with the
12provisions of Article VII of this Act.
13    A winery shipper licensee must collect, maintain, and
14submit to the Commission on a semi-annual basis the total
15number of cases per resident of wine shipped to residents of
16this State. A winery shipper licensed under this subsection (r)
17must comply with the requirements of Section 6-29 of this Act.
18    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
19Section 3-12, the State Commission may receive, respond to, and
20investigate any complaint and impose any of the remedies
21specified in paragraph (1) of subsection (a) of Section 3-12.
22    As used in this subsection, "third-party provider" means
23any entity that provides fulfillment house services, including
24warehousing, packaging, distribution, order processing, or
25shipment of wine, but not the sale of wine, on behalf of a
26licensed winery shipper.

 

 

10100SB0690ham003- 783 -LRB101 04451 SMS 61572 a

1    (s) A craft distiller tasting permit license shall allow an
2Illinois licensed craft distiller to transfer a portion of its
3alcoholic liquor inventory from its craft distiller licensed
4premises to the premises specified in the license hereby
5created and to conduct a sampling, only in the premises
6specified in the license hereby created, of the transferred
7alcoholic liquor in accordance with subsection (c) of Section
86-31 of this Act. The transferred alcoholic liquor may not be
9sold or resold in any form. An applicant for the craft
10distiller tasting permit license must also submit with the
11application proof satisfactory to the State Commission that the
12applicant will provide dram shop liability insurance to the
13maximum limits and have local authority approval.
14    A brewer warehouse permit may be issued to the holder of a
15class 1 brewer license or a class 2 brewer license. If the
16holder of the permit is a class 1 brewer licensee, the brewer
17warehouse permit shall allow the holder to store or warehouse
18up to 930,000 gallons of tax-determined beer manufactured by
19the holder of the permit at the premises specified on the
20permit. If the holder of the permit is a class 2 brewer
21licensee, the brewer warehouse permit shall allow the holder to
22store or warehouse up to 3,720,000 gallons of tax-determined
23beer manufactured by the holder of the permit at the premises
24specified on the permit. Sales to non-licensees are prohibited
25at the premises specified in the brewer warehouse permit.
26(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;

 

 

10100SB0690ham003- 784 -LRB101 04451 SMS 61572 a

199-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
21-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
3eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
4revised 10-2-18.)
 
5    (235 ILCS 5/6-30)  (from Ch. 43, par. 144f)
6    Sec. 6-30. Notwithstanding any other provision of this Act,
7the Illinois Gaming Board shall have exclusive authority to
8establish the hours for sale and consumption of alcoholic
9liquor on board a riverboat during riverboat gambling
10excursions and in a casino conducted in accordance with the
11Illinois Riverboat Gambling Act.
12(Source: P.A. 87-826.)
 
13    Section 35-70. The Illinois Public Aid Code is amended by
14changing Section 10-17.15 as follows:
 
15    (305 ILCS 5/10-17.15)
16    Sec. 10-17.15. Certification of information to State
17gaming licensees.
18    (a) For purposes of this Section, "State gaming licensee"
19means, as applicable, an organization licensee or advance
20deposit wagering licensee licensed under the Illinois Horse
21Racing Act of 1975, an owners licensee licensed under the
22Illinois Riverboat Gambling Act, or a licensee that operates,
23under any law of this State, one or more facilities or gaming

 

 

10100SB0690ham003- 785 -LRB101 04451 SMS 61572 a

1locations at which lawful gambling is authorized and licensed
2as provided in the Illinois Riverboat Gambling Act.
3    (b) The Department may provide, by rule, for certification
4to any State gaming licensee of past due child support owed by
5a responsible relative under a support order entered by a court
6or administrative body of this or any other State on behalf of
7a resident or non-resident receiving child support services
8under this Article in accordance with the requirements of Title
9IV-D, Part D, of the Social Security Act. The State gaming
10licensee shall have the ability to withhold from winnings
11required to be reported to the Internal Revenue Service on Form
12W-2G, up to the full amount of winnings necessary to pay the
13winner's past due child support. The rule shall provide for
14notice to and an opportunity to be heard by each responsible
15relative affected and any final administrative decision
16rendered by the Department shall be reviewed only under and in
17accordance with the Administrative Review Law.
18    (c) For withholding of winnings, the State gaming licensee
19shall be entitled to an administrative fee not to exceed the
20lesser of 4% of the total amount of cash winnings paid to the
21gambling winner or $150.
22    (d) In no event may the total amount withheld from the cash
23payout, including the administrative fee, exceed the total cash
24winnings claimed by the obligor. If the cash payout claimed is
25greater than the amount sufficient to satisfy the obligor's
26delinquent child support payments, the State gaming licensee

 

 

10100SB0690ham003- 786 -LRB101 04451 SMS 61572 a

1shall pay the obligor the remaining balance of the payout, less
2the administrative fee authorized by subsection (c) of this
3Section, at the time it is claimed.
4    (e) A State gaming licensee who in good faith complies with
5the requirements of this Section shall not be liable to the
6gaming winner or any other individual or entity.
7(Source: P.A. 98-318, eff. 8-12-13.)
 
8    Section 35-75. The Firearm Concealed Carry Act is amended
9by changing Section 65 as follows:
 
10    (430 ILCS 66/65)
11    Sec. 65. Prohibited areas.
12    (a) A licensee under this Act shall not knowingly carry a
13firearm on or into:
14        (1) Any building, real property, and parking area under
15    the control of a public or private elementary or secondary
16    school.
17        (2) Any building, real property, and parking area under
18    the control of a pre-school or child care facility,
19    including any room or portion of a building under the
20    control of a pre-school or child care facility. Nothing in
21    this paragraph shall prevent the operator of a child care
22    facility in a family home from owning or possessing a
23    firearm in the home or license under this Act, if no child
24    under child care at the home is present in the home or the

 

 

10100SB0690ham003- 787 -LRB101 04451 SMS 61572 a

1    firearm in the home is stored in a locked container when a
2    child under child care at the home is present in the home.
3        (3) Any building, parking area, or portion of a
4    building under the control of an officer of the executive
5    or legislative branch of government, provided that nothing
6    in this paragraph shall prohibit a licensee from carrying a
7    concealed firearm onto the real property, bikeway, or trail
8    in a park regulated by the Department of Natural Resources
9    or any other designated public hunting area or building
10    where firearm possession is permitted as established by the
11    Department of Natural Resources under Section 1.8 of the
12    Wildlife Code.
13        (4) Any building designated for matters before a
14    circuit court, appellate court, or the Supreme Court, or
15    any building or portion of a building under the control of
16    the Supreme Court.
17        (5) Any building or portion of a building under the
18    control of a unit of local government.
19        (6) Any building, real property, and parking area under
20    the control of an adult or juvenile detention or
21    correctional institution, prison, or jail.
22        (7) Any building, real property, and parking area under
23    the control of a public or private hospital or hospital
24    affiliate, mental health facility, or nursing home.
25        (8) Any bus, train, or form of transportation paid for
26    in whole or in part with public funds, and any building,

 

 

10100SB0690ham003- 788 -LRB101 04451 SMS 61572 a

1    real property, and parking area under the control of a
2    public transportation facility paid for in whole or in part
3    with public funds.
4        (9) Any building, real property, and parking area under
5    the control of an establishment that serves alcohol on its
6    premises, if more than 50% of the establishment's gross
7    receipts within the prior 3 months is from the sale of
8    alcohol. The owner of an establishment who knowingly fails
9    to prohibit concealed firearms on its premises as provided
10    in this paragraph or who knowingly makes a false statement
11    or record to avoid the prohibition on concealed firearms
12    under this paragraph is subject to the penalty under
13    subsection (c-5) of Section 10-1 of the Liquor Control Act
14    of 1934.
15        (10) Any public gathering or special event conducted on
16    property open to the public that requires the issuance of a
17    permit from the unit of local government, provided this
18    prohibition shall not apply to a licensee who must walk
19    through a public gathering in order to access his or her
20    residence, place of business, or vehicle.
21        (11) Any building or real property that has been issued
22    a Special Event Retailer's license as defined in Section
23    1-3.17.1 of the Liquor Control Act during the time
24    designated for the sale of alcohol by the Special Event
25    Retailer's license, or a Special use permit license as
26    defined in subsection (q) of Section 5-1 of the Liquor

 

 

10100SB0690ham003- 789 -LRB101 04451 SMS 61572 a

1    Control Act during the time designated for the sale of
2    alcohol by the Special use permit license.
3        (12) Any public playground.
4        (13) Any public park, athletic area, or athletic
5    facility under the control of a municipality or park
6    district, provided nothing in this Section shall prohibit a
7    licensee from carrying a concealed firearm while on a trail
8    or bikeway if only a portion of the trail or bikeway
9    includes a public park.
10        (14) Any real property under the control of the Cook
11    County Forest Preserve District.
12        (15) Any building, classroom, laboratory, medical
13    clinic, hospital, artistic venue, athletic venue,
14    entertainment venue, officially recognized
15    university-related organization property, whether owned or
16    leased, and any real property, including parking areas,
17    sidewalks, and common areas under the control of a public
18    or private community college, college, or university.
19        (16) Any building, real property, or parking area under
20    the control of a gaming facility licensed under the
21    Illinois Riverboat Gambling Act or the Illinois Horse
22    Racing Act of 1975, including an inter-track wagering
23    location licensee.
24        (17) Any stadium, arena, or the real property or
25    parking area under the control of a stadium, arena, or any
26    collegiate or professional sporting event.

 

 

10100SB0690ham003- 790 -LRB101 04451 SMS 61572 a

1        (18) Any building, real property, or parking area under
2    the control of a public library.
3        (19) Any building, real property, or parking area under
4    the control of an airport.
5        (20) Any building, real property, or parking area under
6    the control of an amusement park.
7        (21) Any building, real property, or parking area under
8    the control of a zoo or museum.
9        (22) Any street, driveway, parking area, property,
10    building, or facility, owned, leased, controlled, or used
11    by a nuclear energy, storage, weapons, or development site
12    or facility regulated by the federal Nuclear Regulatory
13    Commission. The licensee shall not under any circumstance
14    store a firearm or ammunition in his or her vehicle or in a
15    compartment or container within a vehicle located anywhere
16    in or on the street, driveway, parking area, property,
17    building, or facility described in this paragraph.
18        (23) Any area where firearms are prohibited under
19    federal law.
20    (a-5) Nothing in this Act shall prohibit a public or
21private community college, college, or university from:
22        (1) prohibiting persons from carrying a firearm within
23    a vehicle owned, leased, or controlled by the college or
24    university;
25        (2) developing resolutions, regulations, or policies
26    regarding student, employee, or visitor misconduct and

 

 

10100SB0690ham003- 791 -LRB101 04451 SMS 61572 a

1    discipline, including suspension and expulsion;
2        (3) developing resolutions, regulations, or policies
3    regarding the storage or maintenance of firearms, which
4    must include designated areas where persons can park
5    vehicles that carry firearms; and
6        (4) permitting the carrying or use of firearms for the
7    purpose of instruction and curriculum of officially
8    recognized programs, including but not limited to military
9    science and law enforcement training programs, or in any
10    designated area used for hunting purposes or target
11    shooting.
12    (a-10) The owner of private real property of any type may
13prohibit the carrying of concealed firearms on the property
14under his or her control. The owner must post a sign in
15accordance with subsection (d) of this Section indicating that
16firearms are prohibited on the property, unless the property is
17a private residence.
18    (b) Notwithstanding subsections (a), (a-5), and (a-10) of
19this Section except under paragraph (22) or (23) of subsection
20(a), any licensee prohibited from carrying a concealed firearm
21into the parking area of a prohibited location specified in
22subsection (a), (a-5), or (a-10) of this Section shall be
23permitted to carry a concealed firearm on or about his or her
24person within a vehicle into the parking area and may store a
25firearm or ammunition concealed in a case within a locked
26vehicle or locked container out of plain view within the

 

 

10100SB0690ham003- 792 -LRB101 04451 SMS 61572 a

1vehicle in the parking area. A licensee may carry a concealed
2firearm in the immediate area surrounding his or her vehicle
3within a prohibited parking lot area only for the limited
4purpose of storing or retrieving a firearm within the vehicle's
5trunk. For purposes of this subsection, "case" includes a glove
6compartment or console that completely encloses the concealed
7firearm or ammunition, the trunk of the vehicle, or a firearm
8carrying box, shipping box, or other container.
9    (c) A licensee shall not be in violation of this Section
10while he or she is traveling along a public right of way that
11touches or crosses any of the premises under subsection (a),
12(a-5), or (a-10) of this Section if the concealed firearm is
13carried on his or her person in accordance with the provisions
14of this Act or is being transported in a vehicle by the
15licensee in accordance with all other applicable provisions of
16law.
17    (d) Signs stating that the carrying of firearms is
18prohibited shall be clearly and conspicuously posted at the
19entrance of a building, premises, or real property specified in
20this Section as a prohibited area, unless the building or
21premises is a private residence. Signs shall be of a uniform
22design as established by the Department and shall be 4 inches
23by 6 inches in size. The Department shall adopt rules for
24standardized signs to be used under this subsection.
25(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
 

 

 

10100SB0690ham003- 793 -LRB101 04451 SMS 61572 a

1    Section 35-80. The Criminal Code of 2012 is amended by
2changing Sections 28-1, 28-1.1, 28-2, 28-3, 28-5, and 28-7 as
3follows:
 
4    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
5    Sec. 28-1. Gambling.
6    (a) A person commits gambling when he or she:
7        (1) knowingly plays a game of chance or skill for money
8    or other thing of value, unless excepted in subsection (b)
9    of this Section;
10        (2) knowingly makes a wager upon the result of any
11    game, contest, or any political nomination, appointment or
12    election;
13        (3) knowingly operates, keeps, owns, uses, purchases,
14    exhibits, rents, sells, bargains for the sale or lease of,
15    manufactures or distributes any gambling device;
16        (4) contracts to have or give himself or herself or
17    another the option to buy or sell, or contracts to buy or
18    sell, at a future time, any grain or other commodity
19    whatsoever, or any stock or security of any company, where
20    it is at the time of making such contract intended by both
21    parties thereto that the contract to buy or sell, or the
22    option, whenever exercised, or the contract resulting
23    therefrom, shall be settled, not by the receipt or delivery
24    of such property, but by the payment only of differences in
25    prices thereof; however, the issuance, purchase, sale,

 

 

10100SB0690ham003- 794 -LRB101 04451 SMS 61572 a

1    exercise, endorsement or guarantee, by or through a person
2    registered with the Secretary of State pursuant to Section
3    8 of the Illinois Securities Law of 1953, or by or through
4    a person exempt from such registration under said Section
5    8, of a put, call, or other option to buy or sell
6    securities which have been registered with the Secretary of
7    State or which are exempt from such registration under
8    Section 3 of the Illinois Securities Law of 1953 is not
9    gambling within the meaning of this paragraph (4);
10        (5) knowingly owns or possesses any book, instrument or
11    apparatus by means of which bets or wagers have been, or
12    are, recorded or registered, or knowingly possesses any
13    money which he has received in the course of a bet or
14    wager;
15        (6) knowingly sells pools upon the result of any game
16    or contest of skill or chance, political nomination,
17    appointment or election;
18        (7) knowingly sets up or promotes any lottery or sells,
19    offers to sell or transfers any ticket or share for any
20    lottery;
21        (8) knowingly sets up or promotes any policy game or
22    sells, offers to sell or knowingly possesses or transfers
23    any policy ticket, slip, record, document or other similar
24    device;
25        (9) knowingly drafts, prints or publishes any lottery
26    ticket or share, or any policy ticket, slip, record,

 

 

10100SB0690ham003- 795 -LRB101 04451 SMS 61572 a

1    document or similar device, except for such activity
2    related to lotteries, bingo games and raffles authorized by
3    and conducted in accordance with the laws of Illinois or
4    any other state or foreign government;
5        (10) knowingly advertises any lottery or policy game,
6    except for such activity related to lotteries, bingo games
7    and raffles authorized by and conducted in accordance with
8    the laws of Illinois or any other state;
9        (11) knowingly transmits information as to wagers,
10    betting odds, or changes in betting odds by telephone,
11    telegraph, radio, semaphore or similar means; or knowingly
12    installs or maintains equipment for the transmission or
13    receipt of such information; except that nothing in this
14    subdivision (11) prohibits transmission or receipt of such
15    information for use in news reporting of sporting events or
16    contests; or
17        (12) knowingly establishes, maintains, or operates an
18    Internet site that permits a person to play a game of
19    chance or skill for money or other thing of value by means
20    of the Internet or to make a wager upon the result of any
21    game, contest, political nomination, appointment, or
22    election by means of the Internet. This item (12) does not
23    apply to activities referenced in items (6) and (6.1) of
24    subsection (b) of this Section.
25    (b) Participants in any of the following activities shall
26not be convicted of gambling:

 

 

10100SB0690ham003- 796 -LRB101 04451 SMS 61572 a

1        (1) Agreements to compensate for loss caused by the
2    happening of chance including without limitation contracts
3    of indemnity or guaranty and life or health or accident
4    insurance.
5        (2) Offers of prizes, award or compensation to the
6    actual contestants in any bona fide contest for the
7    determination of skill, speed, strength or endurance or to
8    the owners of animals or vehicles entered in such contest.
9        (3) Pari-mutuel betting as authorized by the law of
10    this State.
11        (4) Manufacture of gambling devices, including the
12    acquisition of essential parts therefor and the assembly
13    thereof, for transportation in interstate or foreign
14    commerce to any place outside this State when such
15    transportation is not prohibited by any applicable Federal
16    law; or the manufacture, distribution, or possession of
17    video gaming terminals, as defined in the Video Gaming Act,
18    by manufacturers, distributors, and terminal operators
19    licensed to do so under the Video Gaming Act.
20        (5) The game commonly known as "bingo", when conducted
21    in accordance with the Bingo License and Tax Act.
22        (6) Lotteries when conducted by the State of Illinois
23    in accordance with the Illinois Lottery Law. This exemption
24    includes any activity conducted by the Department of
25    Revenue to sell lottery tickets pursuant to the provisions
26    of the Illinois Lottery Law and its rules.

 

 

10100SB0690ham003- 797 -LRB101 04451 SMS 61572 a

1        (6.1) The purchase of lottery tickets through the
2    Internet for a lottery conducted by the State of Illinois
3    under the program established in Section 7.12 of the
4    Illinois Lottery Law.
5        (7) Possession of an antique slot machine that is
6    neither used nor intended to be used in the operation or
7    promotion of any unlawful gambling activity or enterprise.
8    For the purpose of this subparagraph (b)(7), an antique
9    slot machine is one manufactured 25 years ago or earlier.
10        (8) Raffles and poker runs when conducted in accordance
11    with the Raffles and Poker Runs Act.
12        (9) Charitable games when conducted in accordance with
13    the Charitable Games Act.
14        (10) Pull tabs and jar games when conducted under the
15    Illinois Pull Tabs and Jar Games Act.
16        (11) Gambling games conducted on riverboats when
17    authorized by the Illinois Riverboat Gambling Act.
18        (12) Video gaming terminal games at a licensed
19    establishment, licensed truck stop establishment, licensed
20    large truck stop establishment, licensed fraternal
21    establishment, or licensed veterans establishment when
22    conducted in accordance with the Video Gaming Act.
23        (13) Games of skill or chance where money or other
24    things of value can be won but no payment or purchase is
25    required to participate.
26        (14) Savings promotion raffles authorized under

 

 

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1    Section 5g of the Illinois Banking Act, Section 7008 of the
2    Savings Bank Act, Section 42.7 of the Illinois Credit Union
3    Act, Section 5136B of the National Bank Act (12 U.S.C.
4    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
5    1463).
6    (c) Sentence.
7    Gambling is a Class A misdemeanor. A second or subsequent
8conviction under subsections (a)(3) through (a)(12), is a Class
94 felony.
10    (d) Circumstantial evidence.
11    In prosecutions under this Section circumstantial evidence
12shall have the same validity and weight as in any criminal
13prosecution.
14(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
15    (720 ILCS 5/28-1.1)   (from Ch. 38, par. 28-1.1)
16    Sec. 28-1.1. Syndicated gambling.
17    (a) Declaration of Purpose. Recognizing the close
18relationship between professional gambling and other organized
19crime, it is declared to be the policy of the legislature to
20restrain persons from engaging in the business of gambling for
21profit in this State. This Section shall be liberally construed
22and administered with a view to carrying out this policy.
23    (b) A person commits syndicated gambling when he or she
24operates a "policy game" or engages in the business of
25bookmaking.

 

 

10100SB0690ham003- 799 -LRB101 04451 SMS 61572 a

1    (c) A person "operates a policy game" when he or she
2knowingly uses any premises or property for the purpose of
3receiving or knowingly does receive from what is commonly
4called "policy":
5        (1) money from a person other than the bettor or player
6    whose bets or plays are represented by the money; or
7        (2) written "policy game" records, made or used over
8    any period of time, from a person other than the bettor or
9    player whose bets or plays are represented by the written
10    record.
11    (d) A person engages in bookmaking when he or she knowingly
12receives or accepts more than five bets or wagers upon the
13result of any trials or contests of skill, speed or power of
14endurance or upon any lot, chance, casualty, unknown or
15contingent event whatsoever, which bets or wagers shall be of
16such size that the total of the amounts of money paid or
17promised to be paid to the bookmaker on account thereof shall
18exceed $2,000. Bookmaking is the receiving or accepting of bets
19or wagers regardless of the form or manner in which the
20bookmaker records them.
21    (e) Participants in any of the following activities shall
22not be convicted of syndicated gambling:
23        (1) Agreements to compensate for loss caused by the
24    happening of chance including without limitation contracts
25    of indemnity or guaranty and life or health or accident
26    insurance;

 

 

10100SB0690ham003- 800 -LRB101 04451 SMS 61572 a

1        (2) Offers of prizes, award or compensation to the
2    actual contestants in any bona fide contest for the
3    determination of skill, speed, strength or endurance or to
4    the owners of animals or vehicles entered in the contest;
5        (3) Pari-mutuel betting as authorized by law of this
6    State;
7        (4) Manufacture of gambling devices, including the
8    acquisition of essential parts therefor and the assembly
9    thereof, for transportation in interstate or foreign
10    commerce to any place outside this State when the
11    transportation is not prohibited by any applicable Federal
12    law;
13        (5) Raffles and poker runs when conducted in accordance
14    with the Raffles and Poker Runs Act;
15        (6) Gambling games conducted on riverboats, in
16    casinos, or at organization gaming facilities when
17    authorized by the Illinois Riverboat Gambling Act;
18        (7) Video gaming terminal games at a licensed
19    establishment, licensed truck stop establishment, licensed
20    large truck stop establishment, licensed fraternal
21    establishment, or licensed veterans establishment when
22    conducted in accordance with the Video Gaming Act; and
23        (8) Savings promotion raffles authorized under Section
24    5g of the Illinois Banking Act, Section 7008 of the Savings
25    Bank Act, Section 42.7 of the Illinois Credit Union Act,
26    Section 5136B of the National Bank Act (12 U.S.C. 25a), or

 

 

10100SB0690ham003- 801 -LRB101 04451 SMS 61572 a

1    Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
2    (f) Sentence. Syndicated gambling is a Class 3 felony.
3(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
4    (720 ILCS 5/28-2)  (from Ch. 38, par. 28-2)
5    Sec. 28-2. Definitions.
6    (a) A "gambling device" is any clock, tape machine, slot
7machine or other machines or device for the reception of money
8or other thing of value on chance or skill or upon the action
9of which money or other thing of value is staked, hazarded,
10bet, won or lost; or any mechanism, furniture, fixture,
11equipment or other device designed primarily for use in a
12gambling place. A "gambling device" does not include:
13        (1) A coin-in-the-slot operated mechanical device
14    played for amusement which rewards the player with the
15    right to replay such mechanical device, which device is so
16    constructed or devised as to make such result of the
17    operation thereof depend in part upon the skill of the
18    player and which returns to the player thereof no money,
19    property or right to receive money or property.
20        (2) Vending machines by which full and adequate return
21    is made for the money invested and in which there is no
22    element of chance or hazard.
23        (3) A crane game. For the purposes of this paragraph
24    (3), a "crane game" is an amusement device involving skill,
25    if it rewards the player exclusively with merchandise

 

 

10100SB0690ham003- 802 -LRB101 04451 SMS 61572 a

1    contained within the amusement device proper and limited to
2    toys, novelties and prizes other than currency, each having
3    a wholesale value which is not more than $25.
4        (4) A redemption machine. For the purposes of this
5    paragraph (4), a "redemption machine" is a single-player or
6    multi-player amusement device involving a game, the object
7    of which is throwing, rolling, bowling, shooting, placing,
8    or propelling a ball or other object that is either
9    physical or computer generated on a display or with lights
10    into, upon, or against a hole or other target that is
11    either physical or computer generated on a display or with
12    lights, or stopping, by physical, mechanical, or
13    electronic means, a moving object that is either physical
14    or computer generated on a display or with lights into,
15    upon, or against a hole or other target that is either
16    physical or computer generated on a display or with lights,
17    provided that all of the following conditions are met:
18            (A) The outcome of the game is predominantly
19        determined by the skill of the player.
20            (B) The award of the prize is based solely upon the
21        player's achieving the object of the game or otherwise
22        upon the player's score.
23            (C) Only merchandise prizes are awarded.
24            (D) The wholesale value of prizes awarded in lieu
25        of tickets or tokens for single play of the device does
26        not exceed $25.

 

 

10100SB0690ham003- 803 -LRB101 04451 SMS 61572 a

1            (E) The redemption value of tickets, tokens, and
2        other representations of value, which may be
3        accumulated by players to redeem prizes of greater
4        value, for a single play of the device does not exceed
5        $25.
6        (5) Video gaming terminals at a licensed
7    establishment, licensed truck stop establishment, licensed
8    large truck stop establishment, licensed fraternal
9    establishment, or licensed veterans establishment licensed
10    in accordance with the Video Gaming Act.
11    (a-5) "Internet" means an interactive computer service or
12system or an information service, system, or access software
13provider that provides or enables computer access by multiple
14users to a computer server, and includes, but is not limited
15to, an information service, system, or access software provider
16that provides access to a network system commonly known as the
17Internet, or any comparable system or service and also
18includes, but is not limited to, a World Wide Web page,
19newsgroup, message board, mailing list, or chat area on any
20interactive computer service or system or other online service.
21    (a-6) "Access" and "computer" have the meanings ascribed to
22them in Section 16D-2 of this Code.
23    (b) A "lottery" is any scheme or procedure whereby one or
24more prizes are distributed by chance among persons who have
25paid or promised consideration for a chance to win such prizes,
26whether such scheme or procedure is called a lottery, raffle,

 

 

10100SB0690ham003- 804 -LRB101 04451 SMS 61572 a

1gift, sale or some other name, excluding savings promotion
2raffles authorized under Section 5g of the Illinois Banking
3Act, Section 7008 of the Savings Bank Act, Section 42.7 of the
4Illinois Credit Union Act, Section 5136B of the National Bank
5Act (12 U.S.C. 25a), or Section 4 of the Home Owners' Loan Act
6(12 U.S.C. 1463).
7    (c) A "policy game" is any scheme or procedure whereby a
8person promises or guarantees by any instrument, bill,
9certificate, writing, token or other device that any particular
10number, character, ticket or certificate shall in the event of
11any contingency in the nature of a lottery entitle the
12purchaser or holder to receive money, property or evidence of
13debt.
14(Source: P.A. 98-31, eff. 6-24-13; 99-149, eff. 1-1-16.)
 
15    (720 ILCS 5/28-3)   (from Ch. 38, par. 28-3)
16    Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
17any real estate, vehicle, boat or any other property whatsoever
18used for the purposes of gambling other than gambling conducted
19in the manner authorized by the Illinois Riverboat Gambling Act
20or the Video Gaming Act. Any person who knowingly permits any
21premises or property owned or occupied by him or under his
22control to be used as a gambling place commits a Class A
23misdemeanor. Each subsequent offense is a Class 4 felony. When
24any premises is determined by the circuit court to be a
25gambling place:

 

 

10100SB0690ham003- 805 -LRB101 04451 SMS 61572 a

1    (a) Such premises is a public nuisance and may be proceeded
2against as such, and
3    (b) All licenses, permits or certificates issued by the
4State of Illinois or any subdivision or public agency thereof
5authorizing the serving of food or liquor on such premises
6shall be void; and no license, permit or certificate so
7cancelled shall be reissued for such premises for a period of
860 days thereafter; nor shall any person convicted of keeping a
9gambling place be reissued such license for one year from his
10conviction and, after a second conviction of keeping a gambling
11place, any such person shall not be reissued such license, and
12    (c) Such premises of any person who knowingly permits
13thereon a violation of any Section of this Article shall be
14held liable for, and may be sold to pay any unsatisfied
15judgment that may be recovered and any unsatisfied fine that
16may be levied under any Section of this Article.
17(Source: P.A. 96-34, eff. 7-13-09.)
 
18    (720 ILCS 5/28-5)  (from Ch. 38, par. 28-5)
19    Sec. 28-5. Seizure of gambling devices and gambling funds.
20    (a) Every device designed for gambling which is incapable
21of lawful use or every device used unlawfully for gambling
22shall be considered a "gambling device", and shall be subject
23to seizure, confiscation and destruction by the Department of
24State Police or by any municipal, or other local authority,
25within whose jurisdiction the same may be found. As used in

 

 

10100SB0690ham003- 806 -LRB101 04451 SMS 61572 a

1this Section, a "gambling device" includes any slot machine,
2and includes any machine or device constructed for the
3reception of money or other thing of value and so constructed
4as to return, or to cause someone to return, on chance to the
5player thereof money, property or a right to receive money or
6property. With the exception of any device designed for
7gambling which is incapable of lawful use, no gambling device
8shall be forfeited or destroyed unless an individual with a
9property interest in said device knows of the unlawful use of
10the device.
11    (b) Every gambling device shall be seized and forfeited to
12the county wherein such seizure occurs. Any money or other
13thing of value integrally related to acts of gambling shall be
14seized and forfeited to the county wherein such seizure occurs.
15    (c) If, within 60 days after any seizure pursuant to
16subparagraph (b) of this Section, a person having any property
17interest in the seized property is charged with an offense, the
18court which renders judgment upon such charge shall, within 30
19days after such judgment, conduct a forfeiture hearing to
20determine whether such property was a gambling device at the
21time of seizure. Such hearing shall be commenced by a written
22petition by the State, including material allegations of fact,
23the name and address of every person determined by the State to
24have any property interest in the seized property, a
25representation that written notice of the date, time and place
26of such hearing has been mailed to every such person by

 

 

10100SB0690ham003- 807 -LRB101 04451 SMS 61572 a

1certified mail at least 10 days before such date, and a request
2for forfeiture. Every such person may appear as a party and
3present evidence at such hearing. The quantum of proof required
4shall be a preponderance of the evidence, and the burden of
5proof shall be on the State. If the court determines that the
6seized property was a gambling device at the time of seizure,
7an order of forfeiture and disposition of the seized property
8shall be entered: a gambling device shall be received by the
9State's Attorney, who shall effect its destruction, except that
10valuable parts thereof may be liquidated and the resultant
11money shall be deposited in the general fund of the county
12wherein such seizure occurred; money and other things of value
13shall be received by the State's Attorney and, upon
14liquidation, shall be deposited in the general fund of the
15county wherein such seizure occurred. However, in the event
16that a defendant raises the defense that the seized slot
17machine is an antique slot machine described in subparagraph
18(b) (7) of Section 28-1 of this Code and therefore he is exempt
19from the charge of a gambling activity participant, the seized
20antique slot machine shall not be destroyed or otherwise
21altered until a final determination is made by the Court as to
22whether it is such an antique slot machine. Upon a final
23determination by the Court of this question in favor of the
24defendant, such slot machine shall be immediately returned to
25the defendant. Such order of forfeiture and disposition shall,
26for the purposes of appeal, be a final order and judgment in a

 

 

10100SB0690ham003- 808 -LRB101 04451 SMS 61572 a

1civil proceeding.
2    (d) If a seizure pursuant to subparagraph (b) of this
3Section is not followed by a charge pursuant to subparagraph
4(c) of this Section, or if the prosecution of such charge is
5permanently terminated or indefinitely discontinued without
6any judgment of conviction or acquittal (1) the State's
7Attorney shall commence an in rem proceeding for the forfeiture
8and destruction of a gambling device, or for the forfeiture and
9deposit in the general fund of the county of any seized money
10or other things of value, or both, in the circuit court and (2)
11any person having any property interest in such seized gambling
12device, money or other thing of value may commence separate
13civil proceedings in the manner provided by law.
14    (e) Any gambling device displayed for sale to a riverboat
15gambling operation, casino gambling operation, or organization
16gaming facility or used to train occupational licensees of a
17riverboat gambling operation, casino gambling operation, or
18organization gaming facility as authorized under the Illinois
19Riverboat Gambling Act is exempt from seizure under this
20Section.
21    (f) Any gambling equipment, devices, and supplies provided
22by a licensed supplier in accordance with the Illinois
23Riverboat Gambling Act which are removed from a the riverboat,
24casino, or organization gaming facility for repair are exempt
25from seizure under this Section.
26    (g) The following video gaming terminals are exempt from

 

 

10100SB0690ham003- 809 -LRB101 04451 SMS 61572 a

1seizure under this Section:
2        (1) Video gaming terminals for sale to a licensed
3    distributor or operator under the Video Gaming Act.
4        (2) Video gaming terminals used to train licensed
5    technicians or licensed terminal handlers.
6        (3) Video gaming terminals that are removed from a
7    licensed establishment, licensed truck stop establishment,
8    licensed large truck stop establishment, licensed
9    fraternal establishment, or licensed veterans
10    establishment for repair.
11    (h) Property seized or forfeited under this Section is
12subject to reporting under the Seizure and Forfeiture Reporting
13Act.
14(Source: P.A. 100-512, eff. 7-1-18.)
 
15    (720 ILCS 5/28-7)   (from Ch. 38, par. 28-7)
16    Sec. 28-7. Gambling contracts void.
17    (a) All promises, notes, bills, bonds, covenants,
18contracts, agreements, judgments, mortgages, or other
19securities or conveyances made, given, granted, drawn, or
20entered into, or executed by any person whatsoever, where the
21whole or any part of the consideration thereof is for any money
22or thing of value, won or obtained in violation of any Section
23of this Article are null and void.
24    (b) Any obligation void under this Section may be set aside
25and vacated by any court of competent jurisdiction, upon a

 

 

10100SB0690ham003- 810 -LRB101 04451 SMS 61572 a

1complaint filed for that purpose, by the person so granting,
2giving, entering into, or executing the same, or by his
3executors or administrators, or by any creditor, heir, legatee,
4purchaser or other person interested therein; or if a judgment,
5the same may be set aside on motion of any person stated above,
6on due notice thereof given.
7    (c) No assignment of any obligation void under this Section
8may in any manner affect the defense of the person giving,
9granting, drawing, entering into or executing such obligation,
10or the remedies of any person interested therein.
11    (d) This Section shall not prevent a licensed owner of a
12riverboat gambling operation, a casino gambling operation, or
13an organization gaming licensee under the Illinois Gambling Act
14and the Illinois Horse Racing Act of 1975 from instituting a
15cause of action to collect any amount due and owing under an
16extension of credit to a riverboat gambling patron as
17authorized under Section 11.1 of the Illinois Riverboat
18Gambling Act.
19(Source: P.A. 87-826.)
 
20    Section 35-85. The Payday Loan Reform Act is amended by
21changing Section 3-5 as follows:
 
22    (815 ILCS 122/3-5)
23    Sec. 3-5. Licensure.
24    (a) A license to make a payday loan shall state the

 

 

10100SB0690ham003- 811 -LRB101 04451 SMS 61572 a

1address, including city and state, at which the business is to
2be conducted and shall state fully the name of the licensee.
3The license shall be conspicuously posted in the place of
4business of the licensee and shall not be transferable or
5assignable.
6    (b) An application for a license shall be in writing and in
7a form prescribed by the Secretary. The Secretary may not issue
8a payday loan license unless and until the following findings
9are made:
10        (1) that the financial responsibility, experience,
11    character, and general fitness of the applicant are such as
12    to command the confidence of the public and to warrant the
13    belief that the business will be operated lawfully and
14    fairly and within the provisions and purposes of this Act;
15    and
16        (2) that the applicant has submitted such other
17    information as the Secretary may deem necessary.
18    (c) A license shall be issued for no longer than one year,
19and no renewal of a license may be provided if a licensee has
20substantially violated this Act and has not cured the violation
21to the satisfaction of the Department.
22    (d) A licensee shall appoint, in writing, the Secretary as
23attorney-in-fact upon whom all lawful process against the
24licensee may be served with the same legal force and validity
25as if served on the licensee. A copy of the written
26appointment, duly certified, shall be filed in the office of

 

 

10100SB0690ham003- 812 -LRB101 04451 SMS 61572 a

1the Secretary, and a copy thereof certified by the Secretary
2shall be sufficient evidence to subject a licensee to
3jurisdiction in a court of law. This appointment shall remain
4in effect while any liability remains outstanding in this State
5against the licensee. When summons is served upon the Secretary
6as attorney-in-fact for a licensee, the Secretary shall
7immediately notify the licensee by registered mail, enclosing
8the summons and specifying the hour and day of service.
9    (e) A licensee must pay an annual fee of $1,000. In
10addition to the license fee, the reasonable expense of any
11examination or hearing by the Secretary under any provisions of
12this Act shall be borne by the licensee. If a licensee fails to
13renew its license by December 1, its license shall
14automatically expire; however, the Secretary, in his or her
15discretion, may reinstate an expired license upon:
16        (1) payment of the annual fee within 30 days of the
17    date of expiration; and
18        (2) proof of good cause for failure to renew.
19    (f) Not more than one place of business shall be maintained
20under the same license, but the Secretary may issue more than
21one license to the same licensee upon compliance with all the
22provisions of this Act governing issuance of a single license.
23The location, except those locations already in existence as of
24June 1, 2005, may not be within one mile of a horse race track
25subject to the Illinois Horse Racing Act of 1975, within one
26mile of a facility at which gambling is conducted under the

 

 

10100SB0690ham003- 813 -LRB101 04451 SMS 61572 a

1Illinois Riverboat Gambling Act, within one mile of the
2location at which a riverboat subject to the Illinois Riverboat
3Gambling Act docks, or within one mile of any State of Illinois
4or United States military base or naval installation.
5    (g) No licensee shall conduct the business of making loans
6under this Act within any office, suite, room, or place of
7business in which (1) any loans are offered or made under the
8Consumer Installment Loan Act other than title secured loans as
9defined in subsection (a) of Section 15 of the Consumer
10Installment Loan Act and governed by Title 38, Section 110.330
11of the Illinois Administrative Code or (2) any other business
12is solicited or engaged in unless the other business is
13licensed by the Department or, in the opinion of the Secretary,
14the other business would not be contrary to the best interests
15of consumers and is authorized by the Secretary in writing.
16    (g-5) Notwithstanding subsection (g) of this Section, a
17licensee may obtain a license under the Consumer Installment
18Loan Act (CILA) for the exclusive purpose and use of making
19title secured loans, as defined in subsection (a) of Section 15
20of CILA and governed by Title 38, Section 110.300 of the
21Illinois Administrative Code. A licensee may continue to
22service Consumer Installment Loan Act loans that were
23outstanding as of the effective date of this amendatory Act of
24the 96th General Assembly.
25    (h) The Secretary shall maintain a list of licensees that
26shall be available to interested consumers and lenders and the

 

 

10100SB0690ham003- 814 -LRB101 04451 SMS 61572 a

1public. The Secretary shall maintain a toll-free number whereby
2consumers may obtain information about licensees. The
3Secretary shall also establish a complaint process under which
4an aggrieved consumer may file a complaint against a licensee
5or non-licensee who violates any provision of this Act.
6(Source: P.A. 100-958, eff. 8-19-18.)
 
7    Section 35-90. The Travel Promotion Consumer Protection
8Act is amended by changing Section 2 as follows:
 
9    (815 ILCS 420/2)  (from Ch. 121 1/2, par. 1852)
10    Sec. 2. Definitions.
11    (a) "Travel promoter" means a person, including a tour
12operator, who sells, provides, furnishes, contracts for,
13arranges or advertises that he or she will arrange wholesale or
14retail transportation by air, land, sea or navigable stream,
15either separately or in conjunction with other services.
16"Travel promoter" does not include (1) an air carrier; (2) a
17sea carrier; (3) an officially appointed agent of an air
18carrier who is a member in good standing of the Airline
19Reporting Corporation; (4) a travel promoter who has in force
20$1,000,000 or more of liability insurance coverage for
21professional errors and omissions and a surety bond or
22equivalent surety in the amount of $100,000 or more for the
23benefit of consumers in the event of a bankruptcy on the part
24of the travel promoter; or (5) a riverboat subject to

 

 

10100SB0690ham003- 815 -LRB101 04451 SMS 61572 a

1regulation under the Illinois Riverboat Gambling Act.
2    (b) "Advertise" means to make any representation in the
3solicitation of passengers and includes communication with
4other members of the same partnership, corporation, joint
5venture, association, organization, group or other entity.
6    (c) "Passenger" means a person on whose behalf money or
7other consideration has been given or is to be given to
8another, including another member of the same partnership,
9corporation, joint venture, association, organization, group
10or other entity, for travel.
11    (d) "Ticket or voucher" means a writing or combination of
12writings which is itself good and sufficient to obtain
13transportation and other services for which the passenger has
14contracted.
15(Source: P.A. 91-357, eff. 7-29-99.)
 
16    (30 ILCS 105/5.490 rep.)
17    Section 35-95. The State Finance Act is amended by
18repealing Section 5.490.
 
19    (230 ILCS 5/2.1 rep.)
20    (230 ILCS 5/54 rep.)
21    Section 35-100. The Illinois Horse Racing Act of 1975 is
22amended by repealing Sections 2.1 and 54.
 
23
Article 99. Severability; Effective Date

 

 

 

10100SB0690ham003- 816 -LRB101 04451 SMS 61572 a

1    Section 99-95. No acceleration or delay. Where this Act
2makes changes in a statute that is represented in this Act by
3text that is not yet or no longer in effect (for example, a
4Section represented by multiple versions), the use of that text
5does not accelerate or delay the taking effect of (i) the
6changes made by this Act or (ii) provisions derived from any
7other Public Act.
 
8    Section 99-97. Severability. The provisions of this Act are
9severable under Section 1.31 of the Statute on Statutes.
 
10    Section 99-99. Effective date. This Act takes effect upon
11becoming law, except that the changes made to Section 2 of the
12Use Tax Act take effect on January 1, 2020.".