Rep. Lou Lang

Adopted in House Comm. on May 25, 2011

 

 


 

 


 
09700SB0744ham001LRB097 04465 ASK 56143 a

1
AMENDMENT TO SENATE BILL 744

2    AMENDMENT NO. ______. Amend Senate Bill 744 by replacing
3everything after the enacting clause with the following:
 
4
"ARTICLE 1.

 
5    Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 1-5. Definitions. As used in this Act:
9    "Authority" means the Chicago Casino Development Authority
10created by this Act.
11    "Board" means the board appointed pursuant to this Act to
12govern and control the Authority.
13    "Casino" means one temporary land-based or water-based
14facility, one permanent land-based or water-based facility,
15and airport gaming locations pursuant to Section 1-67 of this

 

 

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1Act at each of which lawful gambling is authorized and licensed
2as provided in the Illinois Gambling Act.
3    "City" means the City of Chicago.
4    "Casino operator licensee" means any person or entity
5selected by the Authority and approved and licensed by the
6Gaming Board to manage and operate a casino within the City of
7Chicago pursuant to a casino management contract.
8    "Casino management contract" means a legally binding
9agreement between the Authority and a casino operator licensee
10to operate or manage a casino.
11    "Executive director" means the person appointed by the
12Board to oversee the daily operations of the Authority.
13    "Gaming Board" means the Illinois Gaming Board created by
14the Illinois Gambling Act.
15    "Mayor" means the Mayor of the City.
 
16    Section 1-12. Creation of the Authority. There is hereby
17created a political subdivision, unit of local government with
18only the powers authorized by law, body politic, and municipal
19corporation, by the name and style of the Chicago Casino
20Development Authority.
 
21    Section 1-13. Duties of the Authority. It shall be the duty
22of the Authority, as a casino licensee under the Illinois
23Gambling Act, to promote and maintain a casino in the City. The
24Authority shall construct, equip, and maintain grounds,

 

 

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1buildings, and facilities for that purpose. The Authority shall
2contract with a casino operator licensee to manage and operate
3the casino and in no event shall the Authority or City manage
4or operate the casino. The Authority may contract with other
5third parties in order to fulfill its purpose. The Authority is
6responsible for the payment of any fees required of a casino
7operator under subsection (a) of Section 7.8 of the Illinois
8Gambling Act if the casino operator licensee is late in paying
9any such fees. The Authority is granted all rights and powers
10necessary to perform such duties.
 
11    Section 1-15. Board.
12    (a) The governing and administrative powers of the
13Authority shall be vested in a body known as the Chicago Casino
14Development Board. The Board shall consist of 5 members
15appointed by the Mayor. All appointees shall be subject to
16background investigation and approval by the Gaming Board. One
17of these members shall be designated by the Mayor to serve as
18chairperson. All of the members appointed by the Mayor shall be
19residents of the City.
20    (b) Board members shall receive $300 for each day the
21Authority meets and shall be entitled to reimbursement of
22reasonable expenses incurred in the performance of their
23official duties. A Board member who serves in the office of
24secretary-treasurer may also receive compensation for services
25provided as that officer.
 

 

 

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1    Section 1-20. Terms of appointments; resignation and
2removal.
3    (a) The Mayor shall appoint 2 members of the Board for an
4initial term expiring July 1 of the year following approval by
5the Gaming Board, 2 members for an initial term expiring July 1
6three years following approval by the Gaming Board, and one
7member for an initial term expiring July 1 five years following
8approval by the Gaming Board.
9    (b) All successors shall hold office for a term of 5 years
10from the first day of July of the year in which they are
11appointed, except in the case of an appointment to fill a
12vacancy. Each member, including the chairperson, shall hold
13office until the expiration of his or her term and until his or
14her successor is appointed and qualified. Nothing shall
15preclude a member from serving consecutive terms. Any member
16may resign from office, to take effect when a successor has
17been appointed and qualified. A vacancy in office shall occur
18in the case of a member's death or indictment, conviction, or
19plea of guilty to a felony. A vacancy shall be filled for the
20unexpired term by the Mayor with the approval of the Gaming
21Board.
22    (c) Members of the Board shall serve at the pleasure of the
23Mayor. The Mayor or the Gaming Board may remove any member of
24the Board upon a finding of incompetence, neglect of duty, or
25misfeasance or malfeasance in office or for a violation of this

 

 

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1Act. The Gaming Board may remove any member of the Board for
2any violation of the Illinois Gambling Act or the rules and
3regulations of the Gaming Board.
 
4    Section 1-25. Organization of Board; meetings. After
5appointment by the Mayor and approval of the Gaming Board, the
6Board shall organize for the transaction of business. The Board
7shall prescribe the time and place for meetings, the manner in
8which special meetings may be called, and the notice that must
9be given to members. All actions and meetings of the Board
10shall be subject to the provisions of the Open Meetings Act.
11Three members of the Board shall constitute a quorum. All
12substantive action of the Board shall be by resolution with an
13affirmative vote of a majority of the members.
 
14    Section 1-30. Executive director; officers.
15    (a) The Board shall appoint an executive director, subject
16to completion of a background investigation and approval by the
17Gaming Board, who shall be the chief executive officer of the
18Authority. The Board shall fix the compensation of the
19executive director. Subject to the general control of the
20Board, the executive director shall be responsible for the
21management of the business, properties, and employees of the
22Authority. The executive director shall direct the enforcement
23of all resolutions, rules, and regulations of the Board, and
24shall perform such other duties as may be prescribed from time

 

 

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1to time by the Board. All employees and independent
2contractors, consultants, engineers, architects, accountants,
3attorneys, financial experts, construction experts and
4personnel, superintendents, managers, and other personnel
5appointed or employed pursuant to this Act shall report to the
6executive director. In addition to any other duties set forth
7in this Act, the executive director shall do all of the
8following:
9        (1) Direct and supervise the administrative affairs
10    and activities of the Authority in accordance with its
11    rules, regulations, and policies.
12        (2) Attend meetings of the Board.
13        (3) Keep minutes of all proceedings of the Board.
14        (4) Approve all accounts for salaries, per diem
15    payments, and allowable expenses of the Board and its
16    employees and consultants.
17        (5) Report and make recommendations to the Board
18    concerning the terms and conditions of any casino
19    management contract.
20        (6) Perform any other duty that the Board requires for
21    carrying out the provisions of this Act.
22        (7) Devote his or her full time to the duties of the
23    office and not hold any other office or employment.
24    (b) The Board may select a secretary-treasurer to hold
25office at the pleasure of the Board. The Board shall fix the
26duties of such officer.
 

 

 

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1    Section 1-31. General rights and powers of the Authority.
2In addition to the duties and powers set forth in this Act, the
3Authority shall have the following rights and powers:
4        (1) Adopt and alter an official seal.
5        (2) Establish and change its fiscal year.
6        (3) Sue and be sued, plead and be impleaded, all in its
7    own name, and agree to binding arbitration of any dispute
8    to which it is a party.
9        (4) Adopt, amend, and repeal bylaws, rules, and
10    regulations consistent with the furtherance of the powers
11    and duties provided for.
12        (5) Maintain its principal office within the City and
13    such other offices as the Board may designate.
14        (6) Select locations in the City for a temporary and a
15    permanent casino, subject to final approval by the Gaming
16    Board.
17        (7) Conduct background investigations of potential
18    casino operator licensees, including its principals or
19    shareholders, and Authority staff.
20        (8) Employ, either as regular employees or independent
21    contractors, consultants, engineers, architects,
22    accountants, attorneys, financial experts, construction
23    experts and personnel, superintendents, managers and other
24    professional personnel, and such other personnel as may be
25    necessary in the judgment of the Board, and fix their

 

 

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1    compensation.
2        (9) Own, acquire, construct, equip, lease, operate,
3    and maintain grounds, buildings, and facilities to carry
4    out its corporate purposes and duties.
5        (10) Enter into, revoke, and modify contracts in
6    accordance with the rules of the Gaming Board.
7        (11) Enter into a casino management contract subject to
8    the final approval of the Gaming Board.
9        (12) Develop, or cause to be developed by a third
10    party, a master plan for the design, planning, and
11    development of a casino.
12        (13) Negotiate and enter into intergovernmental
13    agreements with the State and its agencies, the City, and
14    other units of local government, in furtherance of the
15    powers and duties of the Board. However, the Authority may
16    not enter into an agreement with the State Police.
17        (14) Receive and disburse funds for its own corporate
18    purposes or as otherwise specified in this Act.
19        (15) Borrow money from any source, public or private,
20    for any corporate purpose, including, without limitation,
21    working capital for its operations, reserve funds, or
22    payment of interest, and to mortgage, pledge, or otherwise
23    encumber the property or funds of the Authority and to
24    contract with or engage the services of any person in
25    connection with any financing, including financial
26    institutions, issuers of letters of credit, or insurers and

 

 

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1    enter into reimbursement agreements with this person or
2    entity which may be secured as if money were borrowed from
3    the person or entity.
4        (16) Issue bonds as provided for under this Act.
5        (17) Receive and accept from any source, private or
6    public, contributions, gifts, or grants of money or
7    property to the Authority.
8        (18) Provide for the insurance of any property,
9    operations, officers, members, agents, or employees of the
10    Authority against any risk or hazard, to self-insure or
11    participate in joint self-insurance pools or entities to
12    insure against such risk or hazard, and to provide for the
13    indemnification of its officers, members, employees,
14    contractors, or agents against any and all risks.
15        (19) Exercise all the corporate powers granted
16    Illinois corporations under the Business Corporation Act
17    of 1983, except to the extent that powers are inconsistent
18    with those of a body politic and corporate of the State.
19        (20) Do all things necessary or convenient to carry out
20    the powers granted by this Act.
 
21    Section 1-32. Ethical conduct.
22    (a) Board members and employees of the Authority must carry
23out their duties and responsibilities in such a manner as to
24promote and preserve public trust and confidence in the
25integrity and conduct of gaming.

 

 

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

 

 

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

 

 

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

 

 

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1immediately after termination of employment, knowingly accept
2employment or receive compensation or fees for services from a
3person or entity, or its parent or affiliate, that has engaged
4in business with the Authority that resulted in contracts with
5an aggregate value of at least $25,000 or if that Board member
6or employee has made a decision that directly applied to the
7person or entity, or its parent or affiliate.
8    (l) No Board member or employee of the Authority may
9attempt, in any way, to influence any person or corporation
10doing business with the Authority or any officer, agent, or
11employee thereof to hire or contract with any person or
12corporation for any compensated work.
13    (m) Any communication between an elected official of the
14City and any applicant for or party to a casino management
15contract with the Authority, or an officer, director, or
16employee thereof, concerning any manner relating in any way to
17gaming or the Authority shall be disclosed to the Board and the
18Gaming Board. Such disclosure shall be in writing by the
19official within 30 days after the communication and shall be
20filed with the Board. Disclosure must consist of the date of
21the communication, the identity and job title of the person
22with whom the communication was made, a brief summary of the
23communication, the action requested or recommended, all
24responses made, the identity and job title of the person making
25the response, and any other pertinent information.
26    Public disclosure of the written summary provided to the

 

 

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1Board and the Gaming Board shall be subject to the exemptions
2provided under Section 7 of the Freedom of Information Act.
3    (n) Any Board member or employee of the Authority who
4violates any provision of this Section is guilty of a Class 4
5felony.
 
6    Section 1-45. Casino management contracts.
7    (a) The Board shall develop and administer a competitive
8sealed bidding process for the selection of a potential casino
9operator licensee to develop or operate a casino within the
10City. The Board shall issue one or more requests for proposals.
11The Board may establish minimum financial and investment
12requirements to determine the eligibility of persons to respond
13to the Board's requests for proposal, and may establish and
14consider such other criteria as it deems appropriate. The Board
15may impose a fee upon persons who respond to requests for
16proposal, in order to reimburse the Board for its costs in
17preparing and issuing the requests and reviewing the proposals.
18    (b) Within 5 days after the time limit for submitting bids
19and proposals has passed, the Board shall make all bids and
20proposals public, provided, however, the Board shall not be
21required to disclose any information which would be exempt from
22disclosure under Section 7 of the Freedom of Information Act.
23Thereafter, the Board shall evaluate the responses to its
24requests for proposal and the ability of all persons or
25entities responding to its requests for proposal to meet the

 

 

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1requirements of this Act and to undertake and perform the
2obligations set forth in its requests for proposal.
3    (c) After reviewing proposals and subject to Gaming Board
4approval, the Board shall enter into a casino management
5contract authorizing the development, construction, or
6operation of a casino. Validity of the casino management
7contract is contingent upon the issuance of a casino operator
8license to the successful bidder. If the Gaming Board approves
9the contract and grants a casino operator license, the Board
10shall transmit a copy of the executed casino management
11contract to the Gaming Board.
12    (d) After the Authority has been issued a casino license,
13the Gaming Board has issued a casino operator license, and the
14Gaming Board has approved the location of a temporary facility,
15the Authority may conduct gaming operations at a temporary
16facility for no longer than 24 months after gaming operations
17begin. The Gaming Board may, after holding a public hearing,
18grant an extension so long as a permanent facility is not
19operational and the Authority is working in good faith to
20complete the permanent facility. The Gaming Board may grant
21additional extensions following a public hearing. Each
22extension may be for a period of no longer than 6 months.
23    (e) Fifty percent of the total amount received by the
24Authority pursuant to a bid for a casino management contract or
25an executed casino management contract must be transmitted to
26the State and deposited into the Gaming Facilities Fee Revenue

 

 

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

 

 

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1    of any proceeds to be used to refund outstanding bonds)
2    will be used only for the purposes set forth in this Act.
3    The Authority also shall submit to the Auditor General its
4projections on revenues to be generated and pledged to
5repayment of the bonds as scheduled and such other information
6as the Auditor General may reasonably request.
7    The Auditor General shall examine the certifications and
8information submitted and submit a report to the Authority and
9the Gaming Board indicating whether the required
10certifications, projections, and other information have been
11submitted by the Authority and that the assumptions underlying
12the projections are not unreasonable in the aggregate. The
13Auditor General shall submit the report no later than 60 days
14after receiving the information required to be submitted by the
15Authority.
16    The Authority shall not issue bonds until it receives the
17report from the Auditor General indicating the requirements of
18this Section have been met. The Auditor General's report shall
19not be in the nature of a post-audit or examination and shall
20not lead to the issuance of an opinion, as that term is defined
21in generally accepted government auditing standards. The
22Auditor General shall submit a bill to the Authority for costs
23associated with the examinations and report required under this
24Section. The Authority shall reimburse in a timely manner.
25    (b) The Authority shall enter into an intergovernmental
26agreement with the Auditor General authorizing the Auditor

 

 

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

 

 

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1one member shall be selected by the Speaker of the House of
2Representatives; one member shall be selected by the Minority
3Leader of the Senate; and one member shall be selected by the
4Minority Leader of the House of Representatives. The Advisory
5Committee shall meet periodically and shall report the
6information to the Mayor of the City and to the General
7Assembly by December 31st of every year.
8    The Advisory Committee shall be dissolved on the date that
9casino gambling operations are first conducted at a permanent
10facility under the license authorized under Section 7 of the
11Illinois Gambling Act. For the purposes of this Section, the
12terms "female" and "minority person" have the meanings provided
13in Section 2 of the Business Enterprise for Minorities,
14Females, and Persons with Disabilities Act.
 
15    Section 1-65. Acquisition of property; eminent domain
16proceedings. For the lawful purposes of this Act, the City may
17acquire by eminent domain or by condemnation proceedings in the
18manner provided by the Eminent Domain Act, real or personal
19property or interests in real or personal property located in
20the City, and the City may convey to the Authority property so
21acquired. The acquisition of property under this Section is
22declared to be for a public use.
 
23    Section 1-67. Limitations on gaming at Chicago airports.
24The Authority may conduct gaming operations in an airport under

 

 

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1the administration or control of the Chicago Department of
2Aviation. Gaming operations may be conducted pursuant to this
3Section so long as (i) gaming operations are conducted in a
4secured area that is beyond the Transportation Security
5Administration security checkpoints and only available to
6airline passengers and not the general public, (ii) gaming
7operations are limited to slot machines, as defined in Section
84 of the Illinois Gambling Act, and (iii) the combined number
9of gaming positions operating in the City at the airports and
10at the temporary and permanent casino facility does not exceed
11the maximum number of gaming positions authorized pursuant to
12subsection (h) of Section 7 of the Illinois Gambling Act.
13Gaming operations at an airport are subject to all applicable
14laws and rules that apply to any other gaming facility under
15this Act or the Illinois Gambling Act.
 
16    Section 1-70. Local regulation. The casino facilities and
17operations therein shall be subject to all ordinances and
18regulations of the City. The construction, development, and
19operation of the casino shall comply with all ordinances,
20regulations, rules, and controls of the City, including but not
21limited to those relating to zoning and planned development,
22building, fire prevention, and land use. However, the
23regulation of gaming operations is subject to the exclusive
24jurisdiction of the Gaming Board.
 

 

 

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1    Section 1-75. Borrowing.
2    (a) The Authority may borrow money and issue bonds as
3provided in this Section. Bonds of the Authority may be issued
4to provide funds for land acquisition, site assembly and
5preparation, and the design and construction of the casino, as
6defined in the Illinois Gambling Act, all ancillary and related
7facilities comprising the casino complex, and all on-site and
8off-site infrastructure improvements required in connection
9with the development of the casino; to refund (at the time or
10in advance of any maturity or redemption) or redeem any bonds
11of the Authority; to provide or increase a debt service reserve
12fund or other reserves with respect to any or all of its bonds;
13or to pay the legal, financial, administrative, bond insurance,
14credit enhancement, and other legal expenses of the
15authorization, issuance, or delivery of bonds. In this Act, the
16term "bonds" also includes notes of any kind, interim
17certificates, refunding bonds, or any other evidence of
18obligation for borrowed money issued under this Section. Bonds
19may be issued in one or more series and may be payable and
20secured either on a parity with or separately from other bonds.
21    (b) The bonds of the Authority shall be payable from one or
22more of the following sources: (i) the property or revenues of
23the Authority; (ii) revenues derived from the casino; (iii)
24revenues derived from any casino operator licensee; (iv) fees,
25bid proceeds, charges, lease payments, payments required
26pursuant to any casino management contract or other revenues

 

 

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1payable to the Authority, or any receipts of the Authority; (v)
2payments by financial institutions, insurance companies, or
3others pursuant to letters or lines of credit, policies of
4insurance, or purchase agreements; (vi) investment earnings
5from funds or accounts maintained pursuant to a bond resolution
6or trust indenture; (vii) proceeds of refunding bonds; (viii)
7any other revenues derived from or payments by the City; and
8(ix) any payments by any casino operator licensee or others
9pursuant to any guaranty agreement.
10    (c) Bonds shall be authorized by a resolution of the
11Authority and may be secured by a trust indenture by and
12between the Authority and a corporate trustee or trustees,
13which may be any trust company or bank having the powers of a
14trust company within or without the State. Bonds shall meet the
15following requirements:
16        (1) Bonds shall bear interest at a rate not to exceed
17    the maximum rate authorized by the Bond Authorization Act.
18        (2) Bonds issued pursuant to this Section may be
19    payable on such dates and times as may be provided for by
20    the resolution or indenture authorizing the issuance of
21    such bonds; provided, however, that such bonds shall mature
22    no later than 30 years from the date of issuance.
23        (3) At least 25%, based on total principal amount, of
24    all bonds issued pursuant to this Section shall be sold
25    pursuant to notice of sale and public bid. No more than
26    75%, based on total principal amount, of all bonds issued

 

 

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1    pursuant to this Section shall be sold by negotiated sale.
2        (4) Bonds shall be payable at a time or times, in the
3    denominations and form, including book entry form, either
4    coupon, registered, or both, and carry the registration and
5    privileges as to exchange, transfer or conversion, and
6    replacement of mutilated, lost, or destroyed bonds as the
7    resolution or trust indenture may provide.
8        (5) Bonds shall be payable in lawful money of the
9    United States at a designated place.
10        (6) Bonds shall be subject to the terms of purchase,
11    payment, redemption, refunding, or refinancing that the
12    resolution or trust indenture provides.
13        (7) Bonds shall be executed by the manual or facsimile
14    signatures of the officers of the Authority designated by
15    the Board, which signatures shall be valid at delivery even
16    for one who has ceased to hold office.
17        (8) Bonds shall be sold at public or private sale in
18    the manner and upon the terms determined by the Authority.
19        (9) Bonds shall be issued in accordance with the
20    provisions of the Local Government Debt Reform Act.
21    (d) The Authority shall adopt a procurement program with
22respect to contracts relating to underwriters, bond counsel,
23financial advisors, and accountants. The program shall include
24goals for the payment of not less than 30% of the total dollar
25value of the fees from these contracts to minority-owned
26businesses and female-owned businesses as defined in the

 

 

09700SB0744ham001- 24 -LRB097 04465 ASK 56143 a

1Business Enterprise for Minorities, Females, and Persons with
2Disabilities Act. The Authority shall conduct outreach to
3minority-owned businesses and female-owned businesses.
4Outreach shall include, but is not limited to, advertisements
5in periodicals and newspapers, mailings, and other appropriate
6media. The Authority shall submit to the General Assembly a
7comprehensive report that shall include, at a minimum, the
8details of the procurement plan, outreach efforts, and the
9results of the efforts to achieve goals for the payment of
10fees.
11    (e) Subject to the Illinois Gambling Act and rules of the
12Gaming Board regarding pledging of interests in holders of
13owners licenses, any resolution or trust indenture may contain
14provisions that may be a part of the contract with the holders
15of the bonds as to the following:
16        (1) Pledging, assigning, or directing the use,
17    investment, or disposition of revenues of the Authority or
18    proceeds or benefits of any contract, including without
19    limitation any rights in any casino management contract.
20        (2) The setting aside of loan funding deposits, debt
21    service reserves, replacement or operating reserves, cost
22    of issuance accounts and sinking funds, and the regulation,
23    investment, and disposition thereof.
24        (3) Limitations on the purposes to which or the
25    investments in which the proceeds of sale of any issue of
26    bonds or the Authority's revenues and receipts may be

 

 

09700SB0744ham001- 25 -LRB097 04465 ASK 56143 a

1    applied or made.
2        (4) Limitations on the issue of additional bonds, the
3    terms upon which additional bonds may be issued and
4    secured, the terms upon which additional bonds may rank on
5    a parity with, or be subordinate or superior to, other
6    bonds.
7        (5) The refunding, advance refunding, or refinancing
8    of outstanding bonds.
9        (6) The procedure, if any, by which the terms of any
10    contract with bondholders may be altered or amended and the
11    amount of bonds and holders of which must consent thereto
12    and the manner in which consent shall be given.
13        (7) Defining the acts or omissions that shall
14    constitute a default in the duties of the Authority to
15    holders of bonds and providing the rights or remedies of
16    such holders in the event of a default, which may include
17    provisions restricting individual rights of action by
18    bondholders.
19        (8) Providing for guarantees, pledges of property,
20    letters of credit, or other security, or insurance for the
21    benefit of bondholders.
22    (f) No member of the Board, nor any person executing the
23bonds, shall be liable personally on the bonds or subject to
24any personal liability by reason of the issuance of the bonds.
25    (g) The Authority may issue and secure bonds in accordance
26with the provisions of the Local Government Credit Enhancement

 

 

09700SB0744ham001- 26 -LRB097 04465 ASK 56143 a

1Act.
2    (h) A pledge by the Authority of revenues and receipts as
3security for an issue of bonds or for the performance of its
4obligations under any casino management contract shall be valid
5and binding from the time when the pledge is made. The revenues
6and receipts pledged shall immediately be subject to the lien
7of the pledge without any physical delivery or further act, and
8the lien of any pledge shall be valid and binding against any
9person having any claim of any kind in tort, contract, or
10otherwise against the Authority, irrespective of whether the
11person has notice. No resolution, trust indenture, management
12agreement or financing statement, continuation statement, or
13other instrument adopted or entered into by the Authority need
14be filed or recorded in any public record other than the
15records of the Authority in order to perfect the lien against
16third persons, regardless of any contrary provision of law.
17    (i) Bonds that are being paid or retired by issuance, sale,
18or delivery of bonds, and bonds for which sufficient funds have
19been deposited with the paying agent or trustee to provide for
20payment of principal and interest thereon, and any redemption
21premium, as provided in the authorizing resolution, shall not
22be considered outstanding for the purposes of this subsection.
23    (j) The bonds of the Authority shall not be indebtedness of
24the State. The bonds of the Authority are not general
25obligations of the State and are not secured by a pledge of the
26full faith and credit of the State and the holders of bonds of

 

 

09700SB0744ham001- 27 -LRB097 04465 ASK 56143 a

1the Authority may not require, except as provided in this Act,
2the application of State revenues or funds to the payment of
3bonds of the Authority.
4    (k) The State of Illinois pledges and agrees with the
5owners of the bonds that it will not limit or alter the rights
6and powers vested in the Authority by this Act so as to impair
7the terms of any contract made by the Authority with the owners
8or in any way impair the rights and remedies of the owners
9until the bonds, together with interest on them, and all costs
10and expenses in connection with any action or proceedings by or
11on behalf of the owners, are fully met and discharged. The
12Authority is authorized to include this pledge and agreement in
13any contract with the owners of bonds issued under this
14Section.
15    (l) No person holding an elective office in this State,
16holding a seat in the General Assembly, or serving as a board
17member, trustee, officer, or employee of the Authority,
18including the spouse of that person, may receive a legal,
19banking, consulting, or other fee related to the issuance of
20bonds. This prohibition shall also apply to a company or firm
21that employs a person holding an elective office in this State,
22holding a seat in the General Assembly, or serving as a board
23member, trustee, officer, or employee of the Authority,
24including the spouse of that person, if the person or his or
25her spouse has greater than 7.5% ownership of the company or
26firm.
 

 

 

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1    Section 1-85. Derivative products. With respect to all or
2part of any issue of its bonds, the Authority may enter into
3agreements or contracts with any necessary or appropriate
4person, which will have the benefit of providing to the
5Authority an interest rate basis, cash flow basis, or other
6basis different from that provided in the bonds for the payment
7of interest. Such agreements or contracts may include, without
8limitation, agreements or contracts commonly known as
9"interest rate swap agreements", "forward payment conversion
10agreements", "futures", "options", "puts", or "calls" and
11agreements or contracts providing for payments based on levels
12of or changes in interest rates, agreements or contracts to
13exchange cash flows or a series of payments, or to hedge
14payment, rate spread, or similar exposure.
 
15    Section 1-90. Legality for investment. The State of
16Illinois, all governmental entities, all public officers,
17banks, bankers, trust companies, savings banks and
18institutions, building and loan associations, savings and loan
19associations, investment companies, and other persons carrying
20on a banking business, insurance companies, insurance
21associations, and other persons carrying on an insurance
22business, and all executors, administrators, guardians,
23trustees, and other fiduciaries may legally invest any sinking
24funds, moneys, or other funds belonging to them or within their

 

 

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1control in any bonds issued under this Act. However, nothing in
2this Section shall be construed as relieving any person, firm,
3or corporation from any duty of exercising reasonable care in
4selecting securities for purchase or investment.
 
5    Section 1-105. Budgets and reporting.
6    (a) The Board shall annually adopt a budget for each fiscal
7year. The budget may be modified from time to time in the same
8manner and upon the same vote as it may be adopted. The budget
9shall include the Authority's available funds and estimated
10revenues and shall provide for payment of its obligations and
11estimated expenditures for the fiscal year, including, without
12limitation, expenditures for administration, operation,
13maintenance and repairs, debt service, and deposits into
14reserve and other funds and capital projects.
15    (b) The Board shall annually cause the finances of the
16Authority to be audited by a firm of certified public
17accountants selected by the Board in accordance with the rules
18of the Gaming Board and post the firm's audits of the Authority
19on the Authority's Internet website.
20    (c) The Board shall, for each fiscal year, prepare an
21annual report setting forth information concerning its
22activities in the fiscal year and the status of the development
23of the casino. The annual report shall include the audited
24financial statements of the Authority for the fiscal year, the
25budget for the succeeding fiscal year, and the current capital

 

 

09700SB0744ham001- 30 -LRB097 04465 ASK 56143 a

1plan as of the date of the report. Copies of the annual report
2shall be made available to persons who request them and shall
3be submitted not later than 120 days after the end of the
4Authority's fiscal year or, if the audit of the Authority's
5financial statements is not completed within 120 days after the
6end of the Authority's fiscal year, as soon as practical after
7completion of the audit, to the Governor, the Mayor, the
8General Assembly, and the Commission on Government Forecasting
9and Accountability.
 
10    Section 1-110. Deposit and withdrawal of funds.
11    (a) All funds deposited by the Authority in any bank or
12savings and loan association shall be placed in the name of the
13Authority and shall be withdrawn or paid out only by check or
14draft upon the bank or savings and loan association, signed by
152 officers or employees designated by the Board.
16Notwithstanding any other provision of this Section, the Board
17may designate any of its members or any officer or employee of
18the Authority to authorize the wire transfer of funds deposited
19by the secretary-treasurer of funds in a bank or savings and
20loan association for the payment of payroll and employee
21benefits-related expenses.
22    No bank or savings and loan association shall receive
23public funds as permitted by this Section unless it has
24complied with the requirements established pursuant to Section
256 of the Public Funds Investment Act.

 

 

09700SB0744ham001- 31 -LRB097 04465 ASK 56143 a

1    (b) If any officer or employee whose signature appears upon
2any check or draft issued pursuant to this Act ceases (after
3attaching his signature) to hold his or her office before the
4delivery of such a check or draft to the payee, his or her
5signature shall nevertheless be valid and sufficient for all
6purposes with the same effect as if he or she had remained in
7office until delivery thereof.
 
8    Section 1-112. Contracts with the Authority or casino
9operator licensee; disclosure requirements.
10    (a) A bidder, respondent, offeror, or contractor for
11contracts with the Authority or casino operator licensee shall
12disclose the identity of all officers and directors and every
13owner, beneficiary, or person with beneficial interest of more
14than 1% or shareholder entitled to receive more than 1% of the
15total distributable income of any corporation having any
16interest in the contract or in the bidder, respondent, offeror,
17or contractor. The disclosure shall be in writing and attested
18to by an owner, trustee, corporate official, or agent. If stock
19in a corporation is publicly traded and there is no readily
20known individual having greater than a 1% interest, then a
21statement to that effect attested to by an officer or agent of
22the corporation shall fulfill the disclosure statement
23requirement of this Section. A bidder, respondent, offeror, or
24contractor shall notify the Authority of any changes in
25officers, directors, ownership, or individuals having a

 

 

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1beneficial interest of more than 1%.
2    (b) A bidder, respondent, offeror, or contractor for
3contracts with an annual value of $10,000 or more or for a
4period to exceed one year shall disclose all political
5contributions of the bidder, respondent, offeror, or
6contractor and any affiliated person or entity. Disclosure
7shall include at least the names and addresses of the
8contributors and the dollar amounts of any contributions to any
9political committee made within the previous 2 years. The
10disclosure must be submitted to the Gaming Board with a copy of
11the contract.
12    (c) As used in this Section:
13    "Contribution" means contribution as defined in Section
149-1.4 of the Election Code.
15    "Affiliated person" means (i) any person with any ownership
16interest or distributive share of the bidding, responding, or
17contracting entity in excess of 1%, (ii) executive employees of
18the bidding, responding, or contracting entity, and (iii) the
19spouse and minor children of any such persons.
20    "Affiliated entity" means (i) any parent or subsidiary of
21the bidding or contracting entity, (ii) any member of the same
22unitary business group, or (iii) any political committee for
23which the bidding, responding, or contracting entity is the
24sponsoring entity.
25    (d) The Gaming Board may direct the Authority or a casino
26operator licensee to void a contract if a violation of this

 

 

09700SB0744ham001- 33 -LRB097 04465 ASK 56143 a

1Section occurs. The Authority may direct a casino operator
2licensee to void a contract if a violation of this Section
3occurs.
 
4    Section 1-115. Purchasing.
5    (a) All construction contracts and contracts for supplies,
6materials, equipment, and services, when the cost thereof to
7the Authority exceeds $25,000, shall be let by a competitive
8selection process to the lowest responsible proposer, after
9advertising for proposals, except for the following:
10        (1) when repair parts, accessories, equipment, or
11    services are required for equipment or services previously
12    furnished or contracted for;
13        (2) professional services;
14        (3) when services such as water, light, heat, power,
15    telephone (other than long-distance service), or telegraph
16    are required;
17        (4) when contracts for the use, purchase, delivery,
18    movement, or installation of data processing equipment,
19    software, or services and telecommunications equipment,
20    software, and services are required;
21        (5) casino management contracts, which shall be
22    awarded as set forth in Section 1-45 of this Act;
23        (6) contracts where there is only one economically
24    feasible source; and
25        (7) when a purchase is needed on an immediate,

 

 

09700SB0744ham001- 34 -LRB097 04465 ASK 56143 a

1    emergency basis because there exists a threat to public
2    health or public safety, or when immediate expenditure is
3    necessary for repairs to Authority property in order to
4    protect against further loss of or damage to Authority
5    property, to prevent or minimize serious disruption in
6    Authority services or to ensure the integrity of Authority
7    records.
8    (b) All contracts involving less than $25,000 shall be let
9by competitive selection process whenever possible, and in any
10event in a manner calculated to ensure the best interests of
11the public.
12    (c) In determining the responsibility of any proposer, the
13Authority may take into account the proposer's (or an
14individual having a beneficial interest, directly or
15indirectly, of more than 1% in such proposing entity) past
16record of dealings with the Authority, the proposer's
17experience, adequacy of equipment, and ability to complete
18performance within the time set, and other factors besides
19financial responsibility. No such contract shall be awarded to
20any proposer other than the lowest proposer (in case of
21purchase or expenditure) unless authorized or approved by a
22vote of at least 2 members of the Board and such action is
23accompanied by a written statement setting forth the reasons
24for not awarding the contract to the highest or lowest
25proposer, as the case may be. The statement shall be kept on
26file in the principal office of the Authority and open to

 

 

09700SB0744ham001- 35 -LRB097 04465 ASK 56143 a

1public inspection.
2    (d) The Authority shall have the right to reject all
3proposals and to re-advertise for proposals. If after any such
4re-advertisement, no responsible and satisfactory proposals,
5within the terms of the re-advertisement, is received, the
6Authority may award such contract without competitive
7selection, provided that the Gaming Board must approve the
8contract prior to its execution. The contract must not be less
9advantageous to the Authority than any valid proposal received
10pursuant to advertisement.
11    (e) Advertisements for proposals and re-proposals shall be
12published at least once in a daily newspaper of general
13circulation published in the City at least 10 calendar days
14before the time for receiving proposals and in an online
15bulletin published on the Authority's website. Such
16advertisements shall state the time and place for receiving and
17opening of proposals and, by reference to plans and
18specifications on file at the time of the first publication or
19in the advertisement itself, shall describe the character of
20the proposed contract in sufficient detail to fully advise
21prospective proposers of their obligations and to ensure free
22and open competitive selection.
23    (f) All proposals in response to advertisements shall be
24sealed and shall be publicly opened by the Authority. All
25proposers shall be entitled to be present in person or by
26representatives. Cash or a certified or satisfactory cashier's

 

 

09700SB0744ham001- 36 -LRB097 04465 ASK 56143 a

1check, as a deposit of good faith, in a reasonable amount to be
2fixed by the Authority before advertising for proposals, shall
3be required with the proposal. A bond for faithful performance
4of the contract with surety or sureties satisfactory to the
5Authority and adequate insurance may be required in reasonable
6amounts to be fixed by the Authority before advertising for
7proposals.
8    (g) The contract shall be awarded as promptly as possible
9after the opening of proposals. The proposal of the successful
10proposer, as well as the bids of the unsuccessful proposers,
11shall be placed on file and be open to public inspection
12subject to the exemptions from disclosure provided under
13Section 7 of the Freedom of Information Act. All proposals
14shall be void if any disclosure of the terms of any proposals
15in response to an advertisement is made or permitted to be made
16by the Authority before the time fixed for opening proposals.
17    (h) Notice of each and every contract that is offered,
18including renegotiated contracts and change orders, shall be
19published in an online bulletin. The online bulletin must
20include at least the date first offered, the date submission of
21offers is due, the location that offers are to be submitted to,
22a brief purchase description, the method of source selection,
23information of how to obtain a comprehensive purchase
24description and any disclosure and contract forms, and
25encouragement to prospective vendors to hire qualified
26veterans, as defined by Section 45-67 of the Illinois

 

 

09700SB0744ham001- 37 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 38 -LRB097 04465 ASK 56143 a

1    (b) The Authority is authorized to enter into agreements
2with contractors' associations, labor unions, and the
3contractors working on the development of the casino to
4establish an apprenticeship preparedness training program to
5provide for an increase in the number of minority and female
6journeymen and apprentices in the building trades and to enter
7into agreements with community college districts or other
8public or private institutions to provide readiness training.
9The Authority is further authorized to enter into contracts
10with public and private educational institutions and persons in
11the gaming, entertainment, hospitality, and tourism industries
12to provide training for employment in those industries.
 
13    Section 1-140. Home rule. The regulation and licensing of
14casinos and casino gaming, casino gaming facilities, and casino
15operator licensees under this Act are exclusive powers and
16functions of the State. A home rule unit may not regulate or
17license casinos, casino gaming, casino gaming facilities, or
18casino operator licensees under this Act, except as provided
19under this Act. This Section is a denial and limitation of home
20rule powers and functions under subsection (h) of Section 6 of
21Article VII of the Illinois Constitution.
 
22
ARTICLE 10.

 
23    Section 10-1. Short title. This Article may be cited as the

 

 

09700SB0744ham001- 39 -LRB097 04465 ASK 56143 a

1Illinois State Fairgrounds Racetrack Authority Act. References
2in this Article to "this Act" mean this Article.
 
3    Section 10-5. Definitions. As used in this Act:
4    "Authority" means the Illinois State Fairgrounds Racetrack
5Authority created by this Act.
6    "Racing contractor" means any person or entity selected by
7the Authority and approved by the Illinois Racing Board to
8manage and operate the race meets and racing facility within
9the Illinois State Fairgrounds pursuant to a contract.
10    "Executive director" means the person appointed by the
11Board to oversee the daily operations of the Authority.
 
12    Section 10-10. Creation of the Authority. There is hereby
13created a political subdivision, unit of local government with
14only the powers authorized by law, body politic, and municipal
15corporation, by the name and style of the Illinois State
16Fairgrounds Racetrack Authority.
 
17    Section 10-15. Duties of the Authority. It shall be the
18duty of the Authority to promote, operate, and maintain horse
19racing operations through a racing contractor in the Illinois
20State Fairgrounds as provided in this Act. The Authority shall
21equip and maintain the fairgrounds and its buildings and
22facilities for that purpose. The Authority has the right to
23contract with a racing contractor and other third parties in

 

 

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1order to fulfill its purpose. The Authority is granted all
2rights and powers necessary to perform such duties.
 
3    Section 10-20. Board.
4    (a) The governing and administrative powers of the
5Authority is vested in a body consisting of 11 members: 3 of
6whom shall be appointed by the Chairman of the Sangamon County
7Board with the advice and consent of the Sangamon County Board,
8one of whom is appointed for an initial term of one year, one
9of whom is appointed for an initial term of 2 years, and one of
10whom is appointed for an initial term of 3 years; 2 of whom
11shall be appointed by the Mayor of the City of Springfield with
12the advice and consent of the city council, one of whom is
13appointed for an initial term of one year and one of whom is
14appointed for an initial term of 2 years; 3 of whom shall be
15appointed by the Director of the Department of Agriculture, one
16of whom is appointed for an initial term of one year, one of
17whom is appointed for an initial term of 2 years, and one of
18whom is appointed for an initial term of 3 years; 2 of whom
19shall be appointed by the Illinois Standardbred Breeders Fund
20Advisory Board, one of whom is appointed for an initial term of
21one year and one of whom is appointed or an initial term of 2
22years; and one of whom shall be appointed by the horsemen's
23association representing the largest number of standardbred
24owners, breeders, and trainers, who is appointed for an initial
25term of one year. All appointees shall be subject to approval

 

 

09700SB0744ham001- 41 -LRB097 04465 ASK 56143 a

1by the Illinois Racing Board. The Chairman of the Authority
2shall be elected annually by the Board.
3    (b) All successors shall hold office for a term of 5 years,
4except in the case of an appointment to fill a vacancy. Each
5member, including the chairperson, shall hold office until the
6expiration of his or her term and until his or her successor is
7appointed and qualified. Nothing shall preclude a member from
8serving consecutive terms. Any member may resign from office,
9to take effect when a successor has been appointed and
10qualified. A vacancy in office shall occur in the case of a
11member's death or indictment, conviction, or plea of guilty to
12a felony. A vacancy shall be filled for the unexpired term with
13the approval of the Illinois Racing Board.
14    (c) The appointing officer or the Illinois Racing Board may
15remove any member of the Board upon a finding of incompetence,
16neglect of duty, or misfeasance or malfeasance in office or for
17a violation of this Act. The Illinois Racing Board may remove
18any member of the Board for any violation of the Illinois Horse
19Racing Act of 1975 or the rules and regulations of the Illinois
20Racing Board.
21    (d) Board members shall receive $300 for each day it meets
22and shall be entitled to reimbursement of reasonable expenses
23incurred in the performance of their official duties. A Board
24member who serves in the office of secretary-treasurer may also
25receive compensation for services provided as that officer.
26    (e) The Board shall prescribe the time and place for

 

 

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1meetings, the manner in which special meetings may be called,
2and the notice that must be given to members. All actions and
3meetings of the Board shall be subject to the provisions of the
4Open Meetings Act. Six members of the Board shall constitute a
5quorum. All substantive action of the Board shall be by
6resolution with an affirmative vote of a majority of the
7members.
 
8    Section 10-25. Executive director; officers.
9    (a) The Authority shall appoint an executive director,
10after the completion of a background investigation and approval
11by the Illinois Racing Board, who shall be the chief executive
12officer of the Authority. The Board shall fix the compensation
13of the executive director. Subject to the general control of
14the Board, the executive director shall be responsible for the
15management of the business, properties, and employees of the
16Authority. The executive director shall direct the enforcement
17of all resolutions, rules, and regulations of the Board, and
18shall perform such other duties as may be prescribed from time
19to time by the Board. All employees and independent
20contractors, consultants, engineers, architects, accountants,
21attorneys, financial experts, construction experts and
22personnel, superintendents, managers, and other personnel
23appointed or employed pursuant to this Act shall report to the
24executive director. In addition to any other duties set forth
25in this Act, the executive director shall do all of the

 

 

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1following:
2        (1) Direct and supervise the administrative affairs
3    and activities of the Authority in accordance with its
4    rules, regulations, and policies.
5        (2) Attend meetings of the Board.
6        (3) Keep minutes of all proceedings of the Board.
7        (4) Approve all accounts for salaries, per diem
8    payments, and allowable expenses of the Board and its
9    employees and consultants.
10        (5) Report and make recommendations to the Board
11    concerning the terms and conditions of any contract with a
12    horse racing contractor.
13        (6) Perform any other duty that the Board requires for
14    carrying out the provisions of this Act.
15        (7) Devote his or her full time to the duties of the
16    office and not hold any other office or employment.
17    (b) The Board may select a secretary-treasurer to hold
18office at the pleasure of the Board. The Board shall fix the
19duties of such officer.
 
20    Section 10-30. General rights and powers of the Authority.
21In addition to the duties and powers set forth in this Act, the
22Authority shall have the following rights and powers:
23        (1) Transition the conduct of horse racing at the
24    Illinois State Fairgrounds from an annual race meeting that
25    is contained within the duration of the Illinois State Fair

 

 

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1    to an annual standardbred race meeting that lasts from 3 to
2    9 months, depending on funding and market conditions.
3        (2) Adopt and alter an official seal.
4        (3) Establish and change its fiscal year.
5        (4) Sue and be sued, plead and be impleaded, all in its
6    own name, and agree to binding arbitration of any dispute
7    to which it is a party.
8        (5) Adopt, amend, and repeal by-laws, rules, and
9    regulations consistent with the furtherance of the powers
10    and duties provided for.
11        (6) Maintain its principal office and such other
12    offices as the Board may designate.
13        (7) Conduct background investigations of potential
14    racing contractors, including its principals or
15    shareholders, and Authority staff.
16        (8) Employ, either as regular employees or independent
17    contractors, consultants, engineers, architects,
18    accountants, attorneys, financial experts, construction
19    experts and personnel, superintendents, managers and other
20    professional personnel, and such other personnel as may be
21    necessary in the judgment of the Board, and fix their
22    compensation.
23        (9) Operate and maintain grounds, buildings, and
24    facilities to carry out its corporate purposes and duties.
25        (10) Enter into, revoke, and modify contracts.
26        (11) Enter into a contract with a racing contractor.

 

 

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1        (12) Develop, or cause to be developed by a third
2    party, a master plan for development of horse racing at the
3    Illinois State Fairgrounds.
4        (13) Negotiate and enter into intergovernmental
5    agreements with the State and its agencies and units of
6    local government in furtherance of the powers and duties of
7    the Board, including with the Department of Agriculture for
8    the use of facilities in compliance with the State Fair
9    Act.
10        (14) Receive and disburse funds for its own corporate
11    purposes or as otherwise specified in this Act.
12        (15) Borrow money from any source, public or private,
13    for any corporate purpose, including, without limitation,
14    working capital for its operations, reserve funds, or
15    payment of interest, and to mortgage, pledge, or otherwise
16    encumber the property or funds of the Authority and to
17    contract with or engage the services of any person in
18    connection with any financing, including financial
19    institutions, issuers of letters of credit, or insurers and
20    enter into reimbursement agreements with this person or
21    entity which may be secured as if money were borrowed from
22    the person or entity.
23        (16) Receive and accept from any source, private or
24    public, contributions, gifts, or grants of money or
25    property to the Authority.
26        (17) Provide for the insurance of any property,

 

 

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1    operations, officers, members, agents, or employees of the
2    Authority against any risk or hazard, to self-insure or
3    participate in joint self-insurance pools or entities to
4    insure against such risk or hazard, and to provide for the
5    indemnification of its officers, members, employees,
6    contractors, or agents against any and all risks.
7        (18) Exercise all the corporate powers granted
8    Illinois corporations under the Business Corporation Act
9    of 1983, except to the extent that powers are inconsistent
10    with those of a body politic and corporate of the State.
11        (19) Do all things necessary or convenient to carry out
12    the powers granted by this Act.
 
13    Section 10-32. Ethical conduct.
14    (a) Board members and employees of the Authority must carry
15out their duties and responsibilities in such a manner as to
16promote and preserve public trust and confidence in the
17integrity and conduct of gaming.
18    (b) Except as may be required in the conduct of official
19duties, Board members and employees of the Authority shall not
20engage in gambling on any riverboat, in any casino, or in an
21electronic gaming facility licensed by the Illinois Gaming
22Board or engage in legalized gambling in any establishment
23identified by Board action that, in the judgment of the Board,
24could represent a potential for a conflict of interest.
25    (c) A Board member or employee of the Authority shall not

 

 

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1use or attempt to use his or her official position to secure or
2attempt to secure any privilege, advantage, favor, or influence
3for himself or herself or others.
4    (d) Board members and employees of the Authority shall not
5hold or pursue employment, office, position, business, or
6occupation that may conflict with his or her official duties.
7Employees may engage in other gainful employment so long as
8that employment does not interfere or conflict with their
9duties. Such employment must be disclosed to the executive
10director and approved by the Board.
11    (e) Board members and employees of the Authority may not
12engage in employment, communications, or any activity that may
13be deemed a conflict of interest. This prohibition shall extend
14to any act identified by Board action or Gaming Board action
15that, in the judgment of either entity, could represent the
16potential for or the appearance of a conflict of interest.
17    (f) Board members and employees of the Authority may not
18have a financial interest, directly or indirectly, in his or
19her own name or in the name of any other person, partnership,
20association, trust, corporation, or other entity in any
21contract or subcontract for the performance of any work for the
22Authority. This prohibition shall extend to the holding or
23acquisition of an interest in any entity identified by Board
24action or Gaming Board action that, in the judgment of either
25entity, could represent the potential for or the appearance of
26a financial interest. The holding or acquisition of an interest

 

 

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

 

 

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1any entity identified by Board action or Gaming Board action
2that, in the judgment of either entity, could represent the
3potential for or the appearance of a conflict of interest. The
4holding or acquisition of an interest in such entities through
5an indirect means, such as through a mutual fund, shall not be
6prohibited, expect that the Gaming Board may identify specific
7investments or funds that, in its judgment, are so influenced
8by gaming holdings as to represent the potential for or the
9appearance of a conflict of interest.
10    (j) A spouse, child, or parent of a Board member or
11employee of the Authority may not accept any gift, gratuity,
12service, compensation, travel, lodging, or thing of value, with
13the exception of unsolicited items of an incidental nature,
14from any person, corporation, or entity doing business with the
15Authority.
16    (k) A spouse, child, or parent of a Board member or
17employee of the Authority may not, while the person is a Board
18member or employee of the spouse or within a period of 2 years
19immediately after termination of employment, knowingly accept
20employment or receive compensation or fees for services from a
21person or entity, or its parent or affiliate, that has engaged
22in business with the Authority that resulted in contracts with
23an aggregate value of at least $25,000 or if that Board member
24or employee has made a decision that directly applied to the
25person or entity, or its parent or affiliate.
26    (l) No Board member or employee of the Authority may

 

 

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1attempt, in any way, to influence any person or corporation
2doing business with the Authority or any officer, agent, or
3employee thereof to hire or contract with any person or
4corporation for any compensated work.
5    (m) Any communication between an elected official of the
6City of Springfield or Sangamon County and a potential racing
7contractor, or an officer, director, or employee thereof,
8concerning any manner relating in any way to gaming or the
9Authority shall be disclosed to the Board and the Gaming Board.
10Such disclosure shall be in writing by the official within 30
11days after the communication and shall be filed with the Board.
12Disclosure must consist of the date of the communication, the
13identity and job title of the person with whom the
14communication was made, a brief summary of the communication,
15the action requested or recommended, all responses made, the
16identity and job title of the person making the response, and
17any other pertinent information.
18    Public disclosure of the written summary provided to the
19Board and the Gaming Board shall be subject to the exemptions
20provided under Section 7 of the Freedom of Information Act.
21    (n) Any Board member or employee of the Authority who
22violates any provision of this Section is guilty of a Class 4
23felony.
 
24    Section 10-35. Contracts with racing contractors.
25    (a) The Board shall develop and administer a competitive

 

 

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1sealed bidding process for the selection of a potential racing
2contractor to develop or operate horse racing at the Illinois
3State Fairgrounds. The Board shall issue one or more requests
4for proposals. The Board may establish minimum financial and
5investment requirements to determine the eligibility of
6persons to respond to the Board's requests for proposal, and
7may establish and consider such other criteria as it deems
8appropriate. The Board may impose a fee upon persons who
9respond to requests for proposal, in order to reimburse the
10Board for its costs in preparing and issuing the requests and
11reviewing the proposals.
12    (b) The Board may enter into contracts for the development
13of horse racing at the Illinois State Fairgrounds, provided
14that no such contract shall encumber the Department of
15Agriculture.
16    (c) Within 5 days after the time limit for submitting bids
17and proposals has passed, the Board shall make all bids and
18proposals public. Thereafter, the Board shall evaluate the
19responses to its requests for proposal and the ability of all
20persons or entities responding to its request for proposal to
21meet the requirements of this Act and to undertake and perform
22the obligations set forth in its requests for proposal.
23    (d) After reviewing proposals and subject to approval by
24the Illinois Racing Board, the Board shall enter into a
25contract. If the Illinois Racing Board approves the contract,
26the Board shall transmit a copy of the executed contract to the

 

 

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1Illinois Racing Board.
 
2    Section 10-37. Applicability of the Illinois Horse Racing
3Act of 1975. The Authority and its racing contractor are
4subject to the Illinois Horse Racing Act of 1975 and all of the
5rules of the Illinois Racing Board.
 
6    Section 10-40. Transfer of funds. The revenues received by
7the Authority (other than amounts required to be paid pursuant
8to the Illinois Horse Racing Act of 1975 and amounts required
9to pay the operating expenses of the Authority, to pay amounts
10due the racing contractor pursuant to a contract, and to repay
11any borrowing of the Authority made pursuant to Section 30)
12shall be distributed as follows: 50% shall be paid to the
13Department of Agriculture for deposit into the State
14Fairgrounds Infrastructure Improvement Fund and 50% shall be
15paid into the Future of Agriculture Fund.
 
16    Section 10-45. Jurisdiction over property. The Authority
17shall have concurrent jurisdiction with the Department of
18Agriculture over all of the real estate of the Illinois State
19Fairgrounds that is used for horse racing, including those
20facilities commonly known as "one-mile track" and adjacent
21backstretch infrastructure; however, when it is necessary to
22have controlling jurisdiction over the operation of the
23property to obey a mandate of the Illinois Racing Board, the

 

 

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1Authority shall have controlling jurisdiction, except that no
2such compliance by the Authority to any mandate imposed by the
3Racing Board shall impose any budgetary expense upon the
4Department of Agriculture. No substantial changes may be made
5to the infrastructure of the Illinois State Fairgrounds unless
6the Director of Agriculture grants affirmative approval for the
7changes.
 
8    Section 10-50. Budgets and reporting.
9    (a) The Board shall annually adopt a budget for each fiscal
10year. The budget may be modified from time to time in the same
11manner and upon the same vote as it may be adopted. The budget
12shall include the Authority's available funds and estimated
13revenues and shall provide for payment of its obligations and
14estimated expenditures for the fiscal year, including, without
15limitation, expenditures for administration, operation,
16maintenance and repairs, debt service, and deposits into
17reserve and other funds and capital projects.
18    (b) The Board shall annually cause the finances of the
19Authority to be audited by a firm of certified public
20accountants and post the firm's audits of the Authority on the
21Authority's Internet website. The Auditor General has the
22authority and is required to conduct a financial and management
23audit of the Authority every 2 years. The Auditor General's
24audits must be posted on his or her Internet website. The
25Auditor General shall submit a bill to the Authority for costs

 

 

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1associated with the audits required under this Section. The
2Authority shall reimburse in a timely manner.
3    (c) The Board shall, for each fiscal year, prepare an
4annual report setting forth information concerning its
5activities in the fiscal year. The annual report shall include
6the audited financial statements of the Authority for the
7fiscal year, the budget for the succeeding fiscal year, and the
8current capital plan as of the date of the report. Copies of
9the annual report shall be made available to persons who
10request them and shall be submitted not later than 120 days
11after the end of the Authority's fiscal year to the Governor,
12the Mayor, the General Assembly, and the Commission on
13Government Forecasting and Accountability.
 
14    Section 10-55. Deposit and withdrawal of funds.
15    (a) All funds deposited by the Authority in any bank or
16savings and loan association shall be placed in the name of the
17Authority and shall be withdrawn or paid out only by check or
18draft upon the bank or savings and loan association, signed by
192 officers or employees designated by the Board.
20Notwithstanding any other provision of this Section, the Board
21may designate any of its members or any officer or employee of
22the Authority to authorize the wire transfer of funds deposited
23by the secretary-treasurer of funds in a bank or savings and
24loan association for the payment of payroll and employee
25benefits-related expenses.

 

 

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1    No bank or savings and loan association shall receive
2public funds as permitted by this Section unless it has
3complied with the requirements established pursuant to Section
46 of the Public Funds Investment Act.
5    (b) If any officer or employee whose signature appears upon
6any check or draft issued pursuant to this Act ceases (after
7attaching his signature) to hold his or her office before the
8delivery of such a check or draft to the payee, his or her
9signature shall nevertheless be valid and sufficient for all
10purposes with the same effect as if he or she had remained in
11office until delivery thereof.
 
12    Section 10-60. Contracts with the Authority; disclosure
13requirements.
14    (a) A bidder, offeror, or contractor must disclose the
15names of all officers and directors. A bidder, offeror, or
16contractor for contracts with the Authority shall disclose the
17identity of every owner, beneficiary, or person with beneficial
18interest of more than 1%, or shareholder entitled to receive
19more than 1% of the total distributable income of any
20corporation, having any interest in the contract in the bidder,
21offeror, or contractor. The disclosure shall be in writing and
22attested to by an owner, trustee, corporate official, or agent.
23If stock in a corporation is publicly traded and there is no
24readily known individual having greater than a 1% interest,
25then a statement to that effect attested to by an officer or

 

 

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1agent of the corporation or shall fulfill the disclosure
2statement requirement of this Section. A bidder, offeror, or
3contractor shall notify the Authority of any changes in
4officers, directors, ownership, or individuals having a
5beneficial interest of more than 1%.
6    (b) A bidder, offeror, or contractor for contracts with an
7annual value of $10,000 or for a period to exceed one year
8shall disclose all political contributions of the bidder,
9offeror, or contractor and any affiliated person or entity.
10Disclosure shall include at least the names and addresses of
11the contributors and the dollar amounts of any contributions to
12any political committee made within the previous 2 years.
13    (c) As used in this Section:
14    "Contribution" means contribution as defined in Section
159-1.4 of the Election Code.
16    "Affiliated person" means (i) any person with any ownership
17interest or distributive share of the bidding or contracting
18entity in excess of 1%, (ii) executive employees of the bidding
19or contracting entity, and (iii) the spouse and minor children
20of any such persons.
21    "Affiliated entity" means (i) any parent or subsidiary of
22the bidding or contracting entity, (ii) any member of the same
23unitary business group, or (iii) any political committee for
24which the bidding or contracting entity is the sponsoring
25entity.
26    (d) The Illinois Racing Board may direct the Authority to

 

 

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1void a contract if a violation of this Section occurs.
 
2    Section 10-65. Purchasing.
3    (a) All construction contracts and contracts for supplies,
4materials, equipment, and services, when the cost thereof to
5the Authority exceeds $25,000, shall be let to the lowest
6responsible bidder, after advertising for bids, except for the
7following:
8        (1) When repair parts, accessories, equipment, or
9    services are required for equipment or services previously
10    furnished or contracted for;
11        (2) Professional services;
12        (3) When services such as water, light, heat, power,
13    telephone (other than long-distance service), or telegraph
14    are required;
15        (4) When contracts for the use, purchase, delivery,
16    movement, or installation of data processing equipment,
17    software, or services and telecommunications equipment,
18    software, and services are required;
19        (5) Contracts with a racing contractor, which shall be
20    awarded as set forth in Section 35 of this Act.
21    (b) All contracts involving less than $25,000 shall be let
22by competitive bidding whenever possible, and in any event in a
23manner calculated to ensure the best interests of the public.
24    (c) In determining the responsibility of any bidder, the
25Authority may take into account the bidder's (or an individual

 

 

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1having a beneficial interest, directly or indirectly, of more
2than 1% in such bidding entity) past record of dealings with
3the Authority, the bidder's experience, adequacy of equipment,
4and ability to complete performance within the time set, and
5other factors besides financial responsibility. No such
6contract shall be awarded to any bidder other than the lowest
7bidder (in case of purchase or expenditure) unless authorized
8or approved by a vote of at least 4 members of the Board and
9such action is accompanied by a written statement setting forth
10the reasons for not awarding the contract to the highest or
11lowest bidder, as the case may be. The statement shall be kept
12on file in the principal office of the Authority and open to
13public inspection.
14    (d) The Authority shall have the right to reject all bids
15and to re-advertise for bids. If after any such
16re-advertisement, no responsible and satisfactory bid, within
17the terms of the re-advertisement, is received, the Authority
18may award such contract without competitive bidding, provided
19that the Illinois Racing Board must approve the contract prior
20to its execution. The contract must not be less advantageous to
21the Authority than any valid bid received pursuant to
22advertisement.
23    (e) Advertisements for bids and re-bids shall be published
24at least once in a daily newspaper of general circulation
25published in the City of Springfield at least 10 calendar days
26before the time for receiving bids, and such advertisements

 

 

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1shall also be posted on readily accessible bulletin boards in
2the principal office of the Authority. Such advertisements
3shall state the time and place for receiving and opening of
4bids and, by reference to plans and specifications on file at
5the time of the first publication or in the advertisement
6itself, shall describe the character of the proposed contract
7in sufficient detail to fully advise prospective bidders of
8their obligations and to ensure free and open competitive
9bidding.
10    (f) All bids in response to advertisements shall be sealed
11and shall be publicly opened by the Authority. All bidders
12shall be entitled to be present in person or by
13representatives. Cash or a certified or satisfactory cashier's
14check, as a deposit of good faith, in a reasonable amount to be
15fixed by the Authority before advertising for bids, shall be
16required with the proposal of each bidder. A bond for faithful
17performance of the contract with surety or sureties
18satisfactory to the Authority and adequate insurance may be
19required in reasonable amounts to be fixed by the Authority
20before advertising for bids.
21    (g) The contract shall be awarded as promptly as possible
22after the opening of bids. The bid of the successful bidder, as
23well as the bids of the unsuccessful bidders, shall be placed
24on file and be open to public inspection. All bids shall be
25void if any disclosure of the terms of any bid in response to
26an advertisement is made or permitted to be made by the

 

 

09700SB0744ham001- 60 -LRB097 04465 ASK 56143 a

1Authority before the time fixed for opening bids.
2    (h) Notice of each and every contract that is offered,
3including renegotiated contracts and change orders, shall be
4published in an online bulletin. The online bulletin must
5include at least the date first offered, the date submission of
6offers is due, the location that offers are to be submitted to,
7a brief purchase description, the method of source selection,
8information of how to obtain a comprehensive purchase
9description and any disclosure and contract forms, and
10encouragement to prospective vendors to hire qualified
11veterans, as defined by Section 45-67 of the Illinois
12Procurement Code, and Illinois residents discharged from any
13Illinois adult correctional center. Notice of each and every
14contract that is let or awarded, including renegotiated
15contracts and change orders, shall be published in the online
16bulletin and must include at least all of the information
17specified in this item (j), as well as the name of the
18successful responsible bidder or offeror, the contract price,
19and the number of unsuccessful responsive bidders and any other
20disclosure specified in this Section. This notice must be
21posted in the online electronic bulletin prior to execution of
22the contract.
 
23
ARTICLE 90.

 
24    Section 90-1. Findings. The General Assembly makes all of

 

 

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1the following findings:
2        (1) That more than 50 municipalities and 5 counties
3    have opted out of video gaming legislation that was enacted
4    by the 96th General Assembly as Public Act 96-34, and
5    revenues for the State's newly approved capital
6    construction program are on track to fall short of
7    projections.
8        (2) That these shortfalls could postpone much-needed
9    road construction, school construction, and other
10    infrastructure improvements.
11        (3) That the State likely will wait a year or more,
12    until video gaming is licensed, organized, and online, to
13    realize meaningful revenue from the program.
14        (4) That a significant infusion of new revenue is
15    necessary to ensure that those projects, which are
16    fundamental to the State's economic recovery, proceed as
17    planned.
18        (5) That the decline of the Illinois horse racing and
19    breeding program, a $2.5 billion industry, would be
20    reversed if this amendatory Act of the 97th General
21    Assembly would be enacted.
22        (6) That the Illinois horse racing industry is on the
23    verge of extinction due to fierce competition from fully
24    developed horse racing and gaming operations in other
25    states.
26        (7) That Illinois lawmakers agreed in 1999 to earmark

 

 

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1    15% of the forthcoming 10th casino's revenue for horse
2    racing; the State's horse racing industry has never seen a
3    penny of that revenue because the 10th casino has yet to
4    open.
5        (8) That allowing the State's horse racing venues,
6    currently licensed gaming destinations, to maximize their
7    capacities with gaming machines, would generate up to $120
8    million to $200 million for the State in the form of extra
9    licensing fees, plus an additional $100 million to $300
10    million in recurring annual tax revenue for the State to
11    help ensure that school, road, and other building projects
12    promised under the capital plan occur on schedule.
13        (9) That Illinois agriculture and other businesses
14    that support and supply the horse racing industry, already
15    a sector that employs over 37,000 Illinoisans, also stand
16    to substantially benefit and would be much more likely to
17    create additional jobs should Illinois horse racing once
18    again become competitive with other states.
19        (10) That by keeping these projects on track, the State
20    can be sure that significant job and economic growth will
21    in fact result from the previously enacted legislation.
22        (11) That gaming machines at Illinois horse racing
23    tracks would create an estimated 1,200 to 1,500 permanent
24    jobs, and an estimated capital investment of up to $200
25    million to $400 million at these race tracks would prompt
26    additional trade organization jobs necessary to construct

 

 

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

 

 

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

 

 

09700SB0744ham001- 65 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 66 -LRB097 04465 ASK 56143 a

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

 

 

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

 

 

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1    Illinois Constitution;
2        (3) persons whose appointment to office is subject to
3    the advice and consent of the Senate;
4        (4) the head of a department, commission, board,
5    division, bureau, authority, or other administrative unit
6    within the government of this State;
7        (5) chief procurement officers, State purchasing
8    officers, and their designees whose duties are directly
9    related to State procurement; and
10        (6) chiefs of staff, deputy chiefs of staff, associate
11    chiefs of staff, assistant chiefs of staff, and deputy
12    governors; .
13        (7) employees of the Illinois Racing Board; and
14        (8) employees of the Illinois Gaming board.
15(Source: P.A. 96-555, eff. 8-18-09.)
 
16    Section 90-4. The State Fair Act is amended by changing
17Sections 10 and 12 as follows:
 
18    (20 ILCS 210/10)  (from Ch. 127, par. 1710)
19    Sec. 10. The Department may enter into contracts with other
20government agencies to assist them in the operation of each
21State Fair and the State Fairgrounds as well as the
22requirements set forth in Section 9 of this Act.
23    The Department may cooperate with any other local, State or
24federal agency in the furtherance of the intent of this Act.

 

 

09700SB0744ham001- 69 -LRB097 04465 ASK 56143 a

1    The Department may receive and use any donation either from
2the private or public sectors which is for betterment of each
3State Fair and the State Fairgrounds.
4    All revenues from the operation and use of any facilities
5of the Illinois State Fair at Springfield and the Springfield
6State Fairgrounds, other than revenues from horse racing
7conducted at the Springfield State Fairgrounds by the Illinois
8State Fairgrounds Racetrack Authority, shall be deposited in
9the Illinois State Fair Fund. All revenues from the operation
10and use of any facilities of the DuQuoin State Fair and the
11DuQuoin State Fairgrounds shall be deposited into the
12Agricultural Premium Fund. All funds in the Illinois State Fair
13Fund shall be used by the Department of Agriculture in
14accordance with appropriation by the General Assembly for
15operation of the Illinois State Fair.
16(Source: P.A. 88-5.)
 
17    (20 ILCS 210/12)  (from Ch. 127, par. 1712)
18    Sec. 12. The Department shall have the power to promulgate
19rules and regulations, pursuant to the Illinois Administrative
20Procedure Act, governing the holding of each State Fair, the
21operation of the State Fairgrounds, the conditions under which
22racing shall be permitted on the State Fairgrounds, the policy
23for policing the grounds, and such other reasonable rules and
24regulations as are necessary to carry out the intent of the
25Act. However, the Department shall not be required to

 

 

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1promulgate rules and regulations pursuant to the Illinois
2Administrative Procedure Act concerning those operations
3stated in subsections (b) and (c) of Section 6 of this Act.
4Instead, the requirements set forth in subsections (b) and (c)
5of Section 6 must be followed.
6(Source: P.A. 93-1055, eff. 11-23-04.)
 
7    Section 90-5. The Alcoholism and Other Drug Abuse and
8Dependency Act is amended by changing Section 5-20 as follows:
 
9    (20 ILCS 301/5-20)
10    Sec. 5-20. Compulsive gambling program.
11    (a) Subject to appropriation, the Department shall
12establish a program for public education, research, and
13training regarding problem and compulsive gambling and the
14treatment and prevention of problem and compulsive gambling.
15Subject to specific appropriation for these stated purposes,
16the program must include all of the following:
17        (1) Establishment and maintenance of a toll-free "800"
18    telephone number to provide crisis counseling and referral
19    services to families experiencing difficulty as a result of
20    problem or compulsive gambling.
21        (2) Promotion of public awareness regarding the
22    recognition and prevention of problem and compulsive
23    gambling.
24        (3) Facilitation, through in-service training and

 

 

09700SB0744ham001- 71 -LRB097 04465 ASK 56143 a

1    other means, of the availability of effective assistance
2    programs for problem and compulsive gamblers.
3        (4) Conducting studies to identify adults and
4    juveniles in this State who are, or who are at risk of
5    becoming, problem or compulsive gamblers.
6    (b) Subject to appropriation, the Department shall either
7establish and maintain the program or contract with a private
8or public entity for the establishment and maintenance of the
9program. Subject to appropriation, either the Department or the
10private or public entity shall implement the toll-free
11telephone number, promote public awareness, and conduct
12in-service training concerning problem and compulsive
13gambling.
14    (c) Subject to appropriation, the Department shall produce
15and supply the signs specified in Section 10.7 of the Illinois
16Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
171975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
18of the Charitable Games Act, and Section 13.1 of the Illinois
19Riverboat Gambling Act.
20(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
21    Section 90-7. The Department of Commerce and Economic
22Opportunity Law of the Civil Administrative Code of Illinois is
23amended by adding Section 605-530 as follows:
 
24    (20 ILCS 605/605-530 new)

 

 

09700SB0744ham001- 72 -LRB097 04465 ASK 56143 a

1    Sec. 605-530. The Depressed Communities Economic
2Development Board.
3    (a) The Depressed Communities Economic Development Board
4is created as an advisory board within the Department of
5Commerce and Economic Opportunity. The Board shall consist of 8
6members as follows:
7        (1) One member appointed by the President of the Senate
8    to serve an initial term of 2 years.
9        (2) One member appointed by the Minority Leader of the
10    Senate to serve an initial term of one year.
11        (3) One member appointed by the Speaker of the House of
12    Representatives to serve an initial term of 2 years.
13        (4) One member appointed by the Minority Leader of the
14    House of Representatives to serve an initial term of one
15    year.
16        (5) Four members appointed by the Governor, 2 of whom
17    are appointed to serve an initial term of one year and 2 of
18    whom are appointed to serve an initial term of 2 years with
19    one being designated as chair of the Board at the time of
20    appointment.
21    After the initial terms, each member shall be appointed to
22serve a term of 2 years and until his or her successor has been
23appointed and assumes office. If a vacancy occurs in the Board
24membership, then the vacancy shall be filled in the same manner
25as the initial appointment. No member of the Board shall, at
26the time of his or her appointment or within 2 years before the

 

 

09700SB0744ham001- 73 -LRB097 04465 ASK 56143 a

1appointment, hold elected office or be appointed to a State
2board, commission, or agency. All Board members are subject to
3the State Officials and Employees Ethics Act.
4    (b) Board members shall serve without compensation, but may
5be reimbursed for their reasonable travel expenses from funds
6available for that purpose. The Department of Commerce and
7Economic Opportunity shall provide staff and administrative
8support services to the Board.
9    (c) The Board must make recommendations, which must be
10approved by a majority of the Board, to the Department of
11Commerce and Economic Opportunity concerning the award of
12grants from amounts appropriated to the Department from the
13Depressed Communities Economic Development Fund, a special
14fund created in the State treasury. The Department must make
15grants to public or private entities submitting proposals to
16the Board to revitalize an Illinois depressed community. Grants
17may be used by these entities only for those purposes
18conditioned with the grant. For the purposes of this subsection
19(c), plans for revitalizing an Illinois depressed community
20include plans intended to curb high levels of poverty,
21unemployment, job and population loss, and general distress. An
22Illinois depressed community is an area where the poverty rate,
23as determined by using the most recent data released by the
24United States Census Bureau, is at least 3% greater than the
25State poverty rate as determined by using the most recent data
26released by the United States Census Bureau.
 

 

 

09700SB0744ham001- 74 -LRB097 04465 ASK 56143 a

1    Section 90-10. The Department of Revenue Law of the Civil
2Administrative Code of Illinois is amended by changing Section
32505-305 as follows:
 
4    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
5    Sec. 2505-305. Investigators.
6    (a) The Department has the power to appoint investigators
7to conduct all investigations, searches, seizures, arrests,
8and other duties imposed under the provisions of any law
9administered by the Department. Except as provided in
10subsection (c), these investigators have and may exercise all
11the powers of peace officers solely for the purpose of
12enforcing taxing measures administered by the Department.
13    (b) The Director must authorize to each investigator
14employed under this Section and to any other employee of the
15Department exercising the powers of a peace officer a distinct
16badge that, on its face, (i) clearly states that the badge is
17authorized by the Department and (ii) contains a unique
18identifying number. No other badge shall be authorized by the
19Department.
20    (c) The Department may enter into agreements with the
21Illinois Gaming Board providing that investigators appointed
22under this Section shall exercise the peace officer powers set
23forth in paragraph (20.6) of subsection (c) of Section 5 of the
24Illinois Riverboat Gambling Act.

 

 

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1(Source: P.A. 96-37, eff. 7-13-09.)
 
2    Section 90-12. The Illinois State Auditing Act is amended
3by changing Section 3-1 as follows:
 
4    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
5    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
6General has jurisdiction over all State agencies to make post
7audits and investigations authorized by or under this Act or
8the Constitution.
9    The Auditor General has jurisdiction over local government
10agencies and private agencies only:
11        (a) to make such post audits authorized by or under
12    this Act as are necessary and incidental to a post audit of
13    a State agency or of a program administered by a State
14    agency involving public funds of the State, but this
15    jurisdiction does not include any authority to review local
16    governmental agencies in the obligation, receipt,
17    expenditure or use of public funds of the State that are
18    granted without limitation or condition imposed by law,
19    other than the general limitation that such funds be used
20    for public purposes;
21        (b) to make investigations authorized by or under this
22    Act or the Constitution; and
23        (c) to make audits of the records of local government
24    agencies to verify actual costs of state-mandated programs

 

 

09700SB0744ham001- 76 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 77 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 78 -LRB097 04465 ASK 56143 a

1    The Auditor General must conduct an audit of the Chicago
2Casino Development Authority pursuant to Section 1-60 of the
3Chicago Casino Development Authority Act.
4    The Auditor General of the State of Illinois shall annually
5conduct or cause to be conducted a financial and compliance
6audit of the books and records of any county water commission
7organized pursuant to the Water Commission Act of 1985 and
8shall file a copy of the report of that audit with the Governor
9and the Legislative Audit Commission. The filed audit shall be
10open to the public for inspection. The cost of the audit shall
11be charged to the county water commission in accordance with
12Section 6z-27 of the State Finance Act. The county water
13commission shall make available to the Auditor General its
14books and records and any other documentation, whether in the
15possession of its trustees or other parties, necessary to
16conduct the audit required. These audit requirements apply only
17through July 1, 2007.
18    The Auditor General must conduct audits of the Rend Lake
19Conservancy District as provided in Section 25.5 of the River
20Conservancy Districts Act.
21    The Auditor General must conduct financial audits of the
22Southeastern Illinois Economic Development Authority as
23provided in Section 70 of the Southeastern Illinois Economic
24Development Authority Act.
25    The Auditor General shall conduct a compliance audit in
26accordance with subsections (d) and (f) of Section 30 of the

 

 

09700SB0744ham001- 79 -LRB097 04465 ASK 56143 a

1Innovation Development and Economy Act.
2(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
396-939, eff. 6-24-10.)
 
4    Section 90-15. The State Finance Act is amended by adding
5Sections 5.786, 5.787, 5.788, 5.789, 5.790, 6z-79, 6z-87, 6z-88
6and by changing Sections 6z-32 and 6z-77 as follows:
 
7    (30 ILCS 105/5.786 new)
8    Sec. 5.786. The State and County Fair Assistance Fund.
 
9    (30 ILCS 105/5.787 new)
10    Sec. 5.787. The Depressed Communities Economic Development
11Fund.
 
12    (30 ILCS 105/5.788 new)
13    Sec. 5.788. The Gaming Facilities Fee Revenue Fund.
 
14    (30 ILCS 105/5.789 new)
15    Sec. 5.789. The Future of Agriculture Fund.
 
16    (30 ILCS 105/5.790 new)
17    Sec. 5.790. The State Fairgrounds Infrastructure
18Improvement Fund.
 
19    (30 ILCS 105/6z-32)

 

 

09700SB0744ham001- 80 -LRB097 04465 ASK 56143 a

1    Sec. 6z-32. Partners for Planning and Conservation.
2    (a) The Partners for Conservation Fund (formerly known as
3the Conservation 2000 Fund) and the Partners for Conservation
4Projects Fund (formerly known as the Conservation 2000 Projects
5Fund) are created as special funds in the State Treasury. These
6funds shall be used to establish a comprehensive program to
7protect Illinois' natural resources through cooperative
8partnerships between State government and public and private
9landowners. Moneys in these Funds may be used, subject to
10appropriation, by the Department of Natural Resources,
11Environmental Protection Agency, and the Department of
12Agriculture for purposes relating to natural resource
13protection, planning, recreation, tourism, and compatible
14agricultural and economic development activities. Without
15limiting these general purposes, moneys in these Funds may be
16used, subject to appropriation, for the following specific
17purposes:
18        (1) To foster sustainable agriculture practices and
19    control soil erosion and sedimentation, including grants
20    to Soil and Water Conservation Districts for conservation
21    practice cost-share grants and for personnel, educational,
22    and administrative expenses.
23        (2) To establish and protect a system of ecosystems in
24    public and private ownership through conservation
25    easements, incentives to public and private landowners,
26    natural resource restoration and preservation, water

 

 

09700SB0744ham001- 81 -LRB097 04465 ASK 56143 a

1    quality protection and improvement, land use and watershed
2    planning, technical assistance and grants, and land
3    acquisition provided these mechanisms are all voluntary on
4    the part of the landowner and do not involve the use of
5    eminent domain.
6        (3) To develop a systematic and long-term program to
7    effectively measure and monitor natural resources and
8    ecological conditions through investments in technology
9    and involvement of scientific experts.
10        (4) To initiate strategies to enhance, use, and
11    maintain Illinois' inland lakes through education,
12    technical assistance, research, and financial incentives.
13        (5) To partner with private landowners and with units
14    of State, federal, and local government and with
15    not-for-profit organizations in order to integrate State
16    and federal programs with Illinois' natural resource
17    protection and restoration efforts and to meet
18    requirements to obtain federal and other funds for
19    conservation or protection of natural resources.
20    (b) The State Comptroller and State Treasurer shall
21automatically transfer on the last day of each month, beginning
22on September 30, 1995 and ending on June 30, 2021, from the
23General Revenue Fund to the Partners for Conservation Fund, an
24amount equal to 1/10 of the amount set forth below in fiscal
25year 1996 and an amount equal to 1/12 of the amount set forth
26below in each of the other specified fiscal years:

 

 

09700SB0744ham001- 82 -LRB097 04465 ASK 56143 a

1Fiscal Year Amount
21996$ 3,500,000
31997$ 9,000,000
41998$10,000,000
51999$11,000,000
62000$12,500,000
72001 through 2004$14,000,000
82005 $7,000,000
92006 $11,000,000
102007 $0
112008 through 2021........................ $14,000,000
12    (c) Notwithstanding any other provision of law to the
13contrary and in addition to any other transfers that may be
14provided for by law, on the last day of each month beginning on
15July 31, 2006 and ending on June 30, 2007, or as soon
16thereafter as may be practical, the State Comptroller shall
17direct and the State Treasurer shall transfer $1,000,000 from
18the Open Space Lands Acquisition and Development Fund to the
19Conservation 2000 Fund.
20    (d) There shall be deposited into the Partners for
21Conservation Projects Fund such bond proceeds and other moneys
22as may, from time to time, be provided by law.
23    (e) Revenues deposited into the Fund pursuant to subsection
24(b-12) of Section 13 of the Illinois Gambling Act shall be used
25solely for grants to soil and water conservation districts.
26Such revenues shall supplement, and not supplant, other State

 

 

09700SB0744ham001- 83 -LRB097 04465 ASK 56143 a

1funding for soil and water conservation districts.
2(Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-139,
3eff. 1-1-08.)
 
4    (30 ILCS 105/6z-77)
5    Sec. 6z-77. The Capital Projects Fund.
6    (a) The Capital Projects Fund is created as a special fund
7in the State Treasury. The State Comptroller and State
8Treasurer shall transfer from the Capital Projects Fund to the
9General Revenue Fund $61,294,550 on October 1, 2009,
10$122,589,100 on January 1, 2010, and $61,294,550 on April 1,
112010. Beginning on July 1, 2010, and on July 1 and January 1 of
12each year thereafter, the State Comptroller and State Treasurer
13shall transfer the sum of $122,589,100 from the Capital
14Projects Fund to the General Revenue Fund.
15    (b) Subject to appropriation, the Capital Projects Fund may
16be used only for capital projects and the payment of debt
17service on bonds issued for capital projects. All interest
18earned on moneys in the Fund shall be deposited into the Fund.
19The Fund shall not be subject to administrative charges or
20chargebacks, such as but not limited to those authorized under
21Section 8h.
22    (c) Annually, the Governor's Office of Management and
23Budget shall determine if revenues deposited into the Fund in
24the fiscal year are expected to exceed the amount needed in the
25fiscal year for capital projects and the payment of debt

 

 

09700SB0744ham001- 84 -LRB097 04465 ASK 56143 a

1service on bonds issued for capital projects. If any such
2excess amount exists, then on April 1 or as soon thereafter as
3practical, the Governor's Office of Management and Budget shall
4certify such amount, accompanied by a description of the
5process by which the amount was calculated, to the State
6Comptroller and the State Treasurer. Within 15 days after the
7receipt of the certification required by this subsection (c),
8the State Comptroller and the State Treasurer shall transfer
9that amount from the Capital Projects Fund to the Education
10Assistance Fund, except that the amount transferred to the
11Education Assistance Fund pursuant to this subsection (c) shall
12not exceed the estimated amount of revenues that will be
13deposited into the Fund pursuant to Sections 12 and 13 of the
14Illinois Gambling Act in the fiscal year.
15(Source: P.A. 96-34, eff. 7-13-09.)
 
16    (30 ILCS 105/6z-79 new)
17    Sec. 6z-79. The Gaming Facilities Fee Revenue Fund.
18    (a) The Gaming Facilities Fee Revenue Fund is created as a
19special fund in the State treasury.
20    (b) The revenues in the Fund shall be used, subject to
21appropriation, by the Comptroller solely for the purpose of
22payment of vouchers that are outstanding for more than 60 days.
23Whenever practical, the Comptroller must prioritize voucher
24payments for expenses related to medical assistance under the
25Illinois Public Aid Code, the Children's Health Insurance

 

 

09700SB0744ham001- 85 -LRB097 04465 ASK 56143 a

1Program Act, the Covering ALL KIDS Health Insurance Act, and
2the Senior Citizens and Disabled Persons Property Tax Relief
3and Pharmaceutical Assistance Act.
4    (c) The Fund shall consist of fee revenues received
5pursuant to subsection (e) of Section 1-45 of the Chicago
6Casino Development Authority Act and pursuant to subsections
7(e-15), (e-20), and (e-30) of Section 7 and subsections (b) and
8(c) of Section 7.6 of the Illinois Gambling Act. All interest
9earned on moneys in the Fund shall be deposited into the Fund.
10    (d) The Fund shall not be subject to administrative charges
11or chargebacks, including, but not limited to, those authorized
12under subsection (h) of Section 8 of this Act.
 
13    (30 ILCS 105/6z-87 new)
14    Sec. 6z-87. The Future of Agriculture Fund. There is
15created the Future of Agriculture Fund, a special fund in the
16State treasury. Moneys in the Fund may be used by the
17Department of Agriculture, subject to appropriation, solely
18for grants to (1) county fairs, as defined by Section 2 of the
19Agricultural Fair Act, (2) the Illinois Association FFA, and
20(3) University of Illinois Extension 4-H programs. The Future
21of Agriculture Fund is not subject to administrative
22chargebacks, including, but not limited to, those authorized
23under Section 8h of the State Finance Act.
 
24    (30 ILCS 105/6z-88 new)

 

 

09700SB0744ham001- 86 -LRB097 04465 ASK 56143 a

1    Sec. 6z-88. The State Fairgrounds Infrastructure
2Improvement Fund. There is created the State Fairgrounds
3Infrastructure Improvement Fund, a special fund in the State
4treasury. Moneys in the Fund may be used by the Department of
5Agriculture, subject to appropriation, solely for
6infrastructure improvements to the Illinois State Fairgrounds
7in Sangamon County. The State Fairgrounds Infrastructure
8Improvement Fund is not subject to administrative chargebacks,
9including, but not limited to, those authorized under Section
108h of the State Finance Act.
 
11    Section 90-20. The Illinois Income Tax Act is amended by
12changing Section 201 as follows:
 
13    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
14    Sec. 201. Tax Imposed.
15    (a) In general. A tax measured by net income is hereby
16imposed on every individual, corporation, trust and estate for
17each taxable year ending after July 31, 1969 on the privilege
18of earning or receiving income in or as a resident of this
19State. Such tax shall be in addition to all other occupation or
20privilege taxes imposed by this State or by any municipal
21corporation or political subdivision thereof.
22    (b) Rates. The tax imposed by subsection (a) of this
23Section shall be determined as follows, except as adjusted by
24subsection (d-1):

 

 

09700SB0744ham001- 87 -LRB097 04465 ASK 56143 a

1        (1) In the case of an individual, trust or estate, for
2    taxable years ending prior to July 1, 1989, an amount equal
3    to 2 1/2% of the taxpayer's net income for the taxable
4    year.
5        (2) In the case of an individual, trust or estate, for
6    taxable years beginning prior to July 1, 1989 and ending
7    after June 30, 1989, an amount equal to the sum of (i) 2
8    1/2% of the taxpayer's net income for the period prior to
9    July 1, 1989, as calculated under Section 202.3, and (ii)
10    3% of the taxpayer's net income for the period after June
11    30, 1989, as calculated under Section 202.3.
12        (3) In the case of an individual, trust or estate, for
13    taxable years beginning after June 30, 1989, and ending
14    prior to January 1, 2011, an amount equal to 3% of the
15    taxpayer's net income for the taxable year.
16        (4) In the case of an individual, trust, or estate, for
17    taxable years beginning prior to January 1, 2011, and
18    ending after December 31, 2010, an amount equal to the sum
19    of (i) 3% of the taxpayer's net income for the period prior
20    to January 1, 2011, as calculated under Section 202.5, and
21    (ii) 5% of the taxpayer's net income for the period after
22    December 31, 2010, as calculated under Section 202.5.
23        (5) In the case of an individual, trust, or estate, for
24    taxable years beginning on or after January 1, 2011, and
25    ending prior to January 1, 2015, an amount equal to 5% of
26    the taxpayer's net income for the taxable year.

 

 

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1        (5.1) In the case of an individual, trust, or estate,
2    for taxable years beginning prior to January 1, 2015, and
3    ending after December 31, 2014, an amount equal to the sum
4    of (i) 5% of the taxpayer's net income for the period prior
5    to January 1, 2015, as calculated under Section 202.5, and
6    (ii) 3.75% of the taxpayer's net income for the period
7    after December 31, 2014, as calculated under Section 202.5.
8        (5.2) In the case of an individual, trust, or estate,
9    for taxable years beginning on or after January 1, 2015,
10    and ending prior to January 1, 2025, an amount equal to
11    3.75% of the taxpayer's net income for the taxable year.
12        (5.3) In the case of an individual, trust, or estate,
13    for taxable years beginning prior to January 1, 2025, and
14    ending after December 31, 2024, an amount equal to the sum
15    of (i) 3.75% of the taxpayer's net income for the period
16    prior to January 1, 2025, as calculated under Section
17    202.5, and (ii) 3.25% of the taxpayer's net income for the
18    period after December 31, 2024, as calculated under Section
19    202.5.
20        (5.4) In the case of an individual, trust, or estate,
21    for taxable years beginning on or after January 1, 2025, an
22    amount equal to 3.25% of the taxpayer's net income for the
23    taxable year.
24        (6) In the case of a corporation, for taxable years
25    ending prior to July 1, 1989, an amount equal to 4% of the
26    taxpayer's net income for the taxable year.

 

 

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1        (7) In the case of a corporation, for taxable years
2    beginning prior to July 1, 1989 and ending after June 30,
3    1989, an amount equal to the sum of (i) 4% of the
4    taxpayer's net income for the period prior to July 1, 1989,
5    as calculated under Section 202.3, and (ii) 4.8% of the
6    taxpayer's net income for the period after June 30, 1989,
7    as calculated under Section 202.3.
8        (8) In the case of a corporation, for taxable years
9    beginning after June 30, 1989, and ending prior to January
10    1, 2011, an amount equal to 4.8% of the taxpayer's net
11    income for the taxable year.
12        (9) In the case of a corporation, for taxable years
13    beginning prior to January 1, 2011, and ending after
14    December 31, 2010, an amount equal to the sum of (i) 4.8%
15    of the taxpayer's net income for the period prior to
16    January 1, 2011, as calculated under Section 202.5, and
17    (ii) 7% of the taxpayer's net income for the period after
18    December 31, 2010, as calculated under Section 202.5.
19        (10) In the case of a corporation, for taxable years
20    beginning on or after January 1, 2011, and ending prior to
21    January 1, 2015, an amount equal to 7% of the taxpayer's
22    net income for the taxable year.
23        (11) In the case of a corporation, for taxable years
24    beginning prior to January 1, 2015, and ending after
25    December 31, 2014, an amount equal to the sum of (i) 7% of
26    the taxpayer's net income for the period prior to January

 

 

09700SB0744ham001- 90 -LRB097 04465 ASK 56143 a

1    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
2    of the taxpayer's net income for the period after December
3    31, 2014, as calculated under Section 202.5.
4        (12) In the case of a corporation, for taxable years
5    beginning on or after January 1, 2015, and ending prior to
6    January 1, 2025, an amount equal to 5.25% of the taxpayer's
7    net income for the taxable year.
8        (13) In the case of a corporation, for taxable years
9    beginning prior to January 1, 2025, and ending after
10    December 31, 2024, an amount equal to the sum of (i) 5.25%
11    of the taxpayer's net income for the period prior to
12    January 1, 2025, as calculated under Section 202.5, and
13    (ii) 4.8% of the taxpayer's net income for the period after
14    December 31, 2024, as calculated under Section 202.5.
15        (14) In the case of a corporation, for taxable years
16    beginning on or after January 1, 2025, an amount equal to
17    4.8% of the taxpayer's net income for the taxable year.
18    The rates under this subsection (b) are subject to the
19provisions of Section 201.5.
20    (b-5) Surcharge; sale or exchange of assets, properties,
21and intangibles of electronic gaming licensees. For each of
22taxable years 2011 through 2019, a surcharge is imposed on all
23taxpayers on income arising from the sale or exchange of
24capital assets, depreciable business property, real property
25used in the trade or business, and Section 197 intangibles (i)
26of an organization licensee under the Illinois Horse Racing Act

 

 

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1of 1975 and (ii) of an electronic gaming licensee under the
2Illinois Gambling Act. The amount of the surcharge is equal to
3the amount of federal income tax liability for the taxable year
4attributable to those sales and exchanges. The surcharge
5imposed shall not apply if:
6        (1) the electronic gaming license, organization
7    license, or race track property is transferred as a result
8    of any of the following:
9            (A) bankruptcy, a receivership, or a debt
10        adjustment initiated by or against the initial
11        licensee or the substantial owners of the initial
12        licensee;
13            (B) cancellation, revocation, or termination of
14        any such license by the Illinois Gaming Board or the
15        Illinois Racing Board;
16            (C) a determination by the Illinois Gaming Board
17        that transfer of the license is in the best interests
18        of Illinois gaming;
19            (D) the death of an owner of the equity interest in
20        a licensee;
21            (E) the acquisition of a controlling interest in
22        the stock or substantially all of the assets of a
23        publicly traded company;
24            (F) a transfer by a parent company to a wholly
25        owned subsidiary; or
26            (G) the transfer or sale to or by one person to

 

 

09700SB0744ham001- 92 -LRB097 04465 ASK 56143 a

1        another person where both persons were initial owners
2        of the license when the license was issued; or
3        (2) the controlling interest in the electronic gaming
4    license, organization license, or race track property is
5    transferred in a transaction to lineal descendants in which
6    no gain or loss is recognized or as a result of a
7    transaction in accordance with Section 351 of the Internal
8    Revenue Code in which no gain or loss is recognized.
9    The transfer of an electronic gaming license, organization
10license, or race track property by a person other than the
11initial licensee to receive the electronic gaming license is
12not subject to a surcharge. The Department shall adopt rules
13necessary to implement and administer this subsection.
14    (c) Personal Property Tax Replacement Income Tax.
15Beginning on July 1, 1979 and thereafter, in addition to such
16income tax, there is also hereby imposed the Personal Property
17Tax Replacement Income Tax measured by net income on every
18corporation (including Subchapter S corporations), partnership
19and trust, for each taxable year ending after June 30, 1979.
20Such taxes are imposed on the privilege of earning or receiving
21income in or as a resident of this State. The Personal Property
22Tax Replacement Income Tax shall be in addition to the income
23tax imposed by subsections (a) and (b) of this Section and in
24addition to all other occupation or privilege taxes imposed by
25this State or by any municipal corporation or political
26subdivision thereof.

 

 

09700SB0744ham001- 93 -LRB097 04465 ASK 56143 a

1    (d) Additional Personal Property Tax Replacement Income
2Tax Rates. The personal property tax replacement income tax
3imposed by this subsection and subsection (c) of this Section
4in the case of a corporation, other than a Subchapter S
5corporation and except as adjusted by subsection (d-1), shall
6be an additional amount equal to 2.85% of such taxpayer's net
7income for the taxable year, except that beginning on January
81, 1981, and thereafter, the rate of 2.85% specified in this
9subsection shall be reduced to 2.5%, and in the case of a
10partnership, trust or a Subchapter S corporation shall be an
11additional amount equal to 1.5% of such taxpayer's net income
12for the taxable year.
13    (d-1) Rate reduction for certain foreign insurers. In the
14case of a foreign insurer, as defined by Section 35A-5 of the
15Illinois Insurance Code, whose state or country of domicile
16imposes on insurers domiciled in Illinois a retaliatory tax
17(excluding any insurer whose premiums from reinsurance assumed
18are 50% or more of its total insurance premiums as determined
19under paragraph (2) of subsection (b) of Section 304, except
20that for purposes of this determination premiums from
21reinsurance do not include premiums from inter-affiliate
22reinsurance arrangements), beginning with taxable years ending
23on or after December 31, 1999, the sum of the rates of tax
24imposed by subsections (b) and (d) shall be reduced (but not
25increased) to the rate at which the total amount of tax imposed
26under this Act, net of all credits allowed under this Act,

 

 

09700SB0744ham001- 94 -LRB097 04465 ASK 56143 a

1shall equal (i) the total amount of tax that would be imposed
2on the foreign insurer's net income allocable to Illinois for
3the taxable year by such foreign insurer's state or country of
4domicile if that net income were subject to all income taxes
5and taxes measured by net income imposed by such foreign
6insurer's state or country of domicile, net of all credits
7allowed or (ii) a rate of zero if no such tax is imposed on such
8income by the foreign insurer's state of domicile. For the
9purposes of this subsection (d-1), an inter-affiliate includes
10a mutual insurer under common management.
11        (1) For the purposes of subsection (d-1), in no event
12    shall the sum of the rates of tax imposed by subsections
13    (b) and (d) be reduced below the rate at which the sum of:
14            (A) the total amount of tax imposed on such foreign
15        insurer under this Act for a taxable year, net of all
16        credits allowed under this Act, plus
17            (B) the privilege tax imposed by Section 409 of the
18        Illinois Insurance Code, the fire insurance company
19        tax imposed by Section 12 of the Fire Investigation
20        Act, and the fire department taxes imposed under
21        Section 11-10-1 of the Illinois Municipal Code,
22    equals 1.25% for taxable years ending prior to December 31,
23    2003, or 1.75% for taxable years ending on or after
24    December 31, 2003, of the net taxable premiums written for
25    the taxable year, as described by subsection (1) of Section
26    409 of the Illinois Insurance Code. This paragraph will in

 

 

09700SB0744ham001- 95 -LRB097 04465 ASK 56143 a

1    no event increase the rates imposed under subsections (b)
2    and (d).
3        (2) Any reduction in the rates of tax imposed by this
4    subsection shall be applied first against the rates imposed
5    by subsection (b) and only after the tax imposed by
6    subsection (a) net of all credits allowed under this
7    Section other than the credit allowed under subsection (i)
8    has been reduced to zero, against the rates imposed by
9    subsection (d).
10    This subsection (d-1) is exempt from the provisions of
11Section 250.
12    (e) Investment credit. A taxpayer shall be allowed a credit
13against the Personal Property Tax Replacement Income Tax for
14investment in qualified property.
15        (1) A taxpayer shall be allowed a credit equal to .5%
16    of the basis of qualified property placed in service during
17    the taxable year, provided such property is placed in
18    service on or after July 1, 1984. There shall be allowed an
19    additional credit equal to .5% of the basis of qualified
20    property placed in service during the taxable year,
21    provided such property is placed in service on or after
22    July 1, 1986, and the taxpayer's base employment within
23    Illinois has increased by 1% or more over the preceding
24    year as determined by the taxpayer's employment records
25    filed with the Illinois Department of Employment Security.
26    Taxpayers who are new to Illinois shall be deemed to have

 

 

09700SB0744ham001- 96 -LRB097 04465 ASK 56143 a

1    met the 1% growth in base employment for the first year in
2    which they file employment records with the Illinois
3    Department of Employment Security. The provisions added to
4    this Section by Public Act 85-1200 (and restored by Public
5    Act 87-895) shall be construed as declaratory of existing
6    law and not as a new enactment. If, in any year, the
7    increase in base employment within Illinois over the
8    preceding year is less than 1%, the additional credit shall
9    be limited to that percentage times a fraction, the
10    numerator of which is .5% and the denominator of which is
11    1%, but shall not exceed .5%. The investment credit shall
12    not be allowed to the extent that it would reduce a
13    taxpayer's liability in any tax year below zero, nor may
14    any credit for qualified property be allowed for any year
15    other than the year in which the property was placed in
16    service in Illinois. For tax years ending on or after
17    December 31, 1987, and on or before December 31, 1988, the
18    credit shall be allowed for the tax year in which the
19    property is placed in service, or, if the amount of the
20    credit exceeds the tax liability for that year, whether it
21    exceeds the original liability or the liability as later
22    amended, such excess may be carried forward and applied to
23    the tax liability of the 5 taxable years following the
24    excess credit years if the taxpayer (i) makes investments
25    which cause the creation of a minimum of 2,000 full-time
26    equivalent jobs in Illinois, (ii) is located in an

 

 

09700SB0744ham001- 97 -LRB097 04465 ASK 56143 a

1    enterprise zone established pursuant to the Illinois
2    Enterprise Zone Act and (iii) is certified by the
3    Department of Commerce and Community Affairs (now
4    Department of Commerce and Economic Opportunity) as
5    complying with the requirements specified in clause (i) and
6    (ii) by July 1, 1986. The Department of Commerce and
7    Community Affairs (now Department of Commerce and Economic
8    Opportunity) shall notify the Department of Revenue of all
9    such certifications immediately. For tax years ending
10    after December 31, 1988, the credit shall be allowed for
11    the tax year in which the property is placed in service,
12    or, if the amount of the credit exceeds the tax liability
13    for that year, whether it exceeds the original liability or
14    the liability as later amended, such excess may be carried
15    forward and applied to the tax liability of the 5 taxable
16    years following the excess credit years. The credit shall
17    be 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, earlier credit
20    shall be applied first.
21        (2) The term "qualified property" means property
22    which:
23            (A) is tangible, whether new or used, including
24        buildings and structural components of buildings and
25        signs that are real property, but not including land or
26        improvements to real property that are not a structural

 

 

09700SB0744ham001- 98 -LRB097 04465 ASK 56143 a

1        component of a building such as landscaping, sewer
2        lines, local access roads, fencing, parking lots, and
3        other appurtenances;
4            (B) is depreciable pursuant to Section 167 of the
5        Internal Revenue Code, except that "3-year property"
6        as defined in Section 168(c)(2)(A) of that Code is not
7        eligible for the credit provided by this subsection
8        (e);
9            (C) is acquired by purchase as defined in Section
10        179(d) of the Internal Revenue Code;
11            (D) is used in Illinois by a taxpayer who is
12        primarily engaged in manufacturing, or in mining coal
13        or fluorite, or in retailing, or was placed in service
14        on or after July 1, 2006 in a River Edge Redevelopment
15        Zone established pursuant to the River Edge
16        Redevelopment Zone Act; and
17            (E) has not previously been used in Illinois in
18        such a manner and by such a person as would qualify for
19        the credit provided by this subsection (e) or
20        subsection (f).
21        (3) For purposes of this subsection (e),
22    "manufacturing" means the material staging and production
23    of tangible personal property by procedures commonly
24    regarded as manufacturing, processing, fabrication, or
25    assembling which changes some existing material into new
26    shapes, new qualities, or new combinations. For purposes of

 

 

09700SB0744ham001- 99 -LRB097 04465 ASK 56143 a

1    this subsection (e) the term "mining" shall have the same
2    meaning as the term "mining" in Section 613(c) of the
3    Internal Revenue Code. For purposes of this subsection (e),
4    the term "retailing" means the sale of tangible personal
5    property for use or consumption and not for resale, or
6    services rendered in conjunction with the sale of tangible
7    personal property for use or consumption and not for
8    resale. For purposes of this subsection (e), "tangible
9    personal property" has the same meaning as when that term
10    is used in the Retailers' Occupation Tax Act, and, for
11    taxable years ending after December 31, 2008, does not
12    include the generation, transmission, or distribution of
13    electricity.
14        (4) The basis of qualified property shall be the basis
15    used to compute the depreciation deduction for federal
16    income tax purposes.
17        (5) If the basis of the property for federal income tax
18    depreciation purposes is increased after it has been placed
19    in service in Illinois by the taxpayer, the amount of such
20    increase shall be deemed property placed in service on the
21    date of such increase in basis.
22        (6) The term "placed in service" shall have the same
23    meaning as under Section 46 of the Internal Revenue Code.
24        (7) If during any taxable year, any property ceases to
25    be qualified property in the hands of the taxpayer within
26    48 months after being placed in service, or the situs of

 

 

09700SB0744ham001- 100 -LRB097 04465 ASK 56143 a

1    any qualified property is moved outside Illinois within 48
2    months after being placed in service, the Personal Property
3    Tax Replacement Income Tax for such taxable year shall be
4    increased. Such increase shall be determined by (i)
5    recomputing the investment credit which would have been
6    allowed for the year in which credit for such property was
7    originally allowed by eliminating such property from such
8    computation and, (ii) subtracting such recomputed credit
9    from the amount of credit previously allowed. For the
10    purposes of this paragraph (7), a reduction of the basis of
11    qualified property resulting from a redetermination of the
12    purchase price shall be deemed a disposition of qualified
13    property to the extent of such reduction.
14        (8) Unless the investment credit is extended by law,
15    the basis of qualified property shall not include costs
16    incurred after December 31, 2013, except for costs incurred
17    pursuant to a binding contract entered into on or before
18    December 31, 2013.
19        (9) Each taxable year ending before December 31, 2000,
20    a partnership may elect to pass through to its partners the
21    credits to which the partnership is entitled under this
22    subsection (e) for the taxable year. A partner may use the
23    credit allocated to him or her under this paragraph only
24    against the tax imposed in subsections (c) and (d) of this
25    Section. If the partnership makes that election, those
26    credits shall be allocated among the partners in the

 

 

09700SB0744ham001- 101 -LRB097 04465 ASK 56143 a

1    partnership in accordance with the rules set forth in
2    Section 704(b) of the Internal Revenue Code, and the rules
3    promulgated under that Section, and the allocated amount of
4    the credits shall be allowed to the partners for that
5    taxable year. The partnership shall make this election on
6    its Personal Property Tax Replacement Income Tax return for
7    that taxable year. The election to pass through the credits
8    shall be irrevocable.
9        For taxable years ending on or after December 31, 2000,
10    a partner that qualifies its partnership for a subtraction
11    under subparagraph (I) of paragraph (2) of subsection (d)
12    of Section 203 or a shareholder that qualifies a Subchapter
13    S corporation for a subtraction under subparagraph (S) of
14    paragraph (2) of subsection (b) of Section 203 shall be
15    allowed a credit under this subsection (e) equal to its
16    share of the credit earned under this subsection (e) during
17    the taxable year by the partnership or Subchapter S
18    corporation, determined in accordance with the
19    determination of income and distributive share of income
20    under Sections 702 and 704 and Subchapter S of the Internal
21    Revenue Code. This paragraph is exempt from the provisions
22    of Section 250.
23    (f) Investment credit; Enterprise Zone; River Edge
24Redevelopment Zone.
25        (1) A taxpayer shall be allowed a credit against the
26    tax imposed by subsections (a) and (b) of this Section for

 

 

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1    investment in qualified property which is placed in service
2    in an Enterprise Zone created pursuant to the Illinois
3    Enterprise Zone Act or, for property placed in service on
4    or after July 1, 2006, a River Edge Redevelopment Zone
5    established pursuant to the River Edge Redevelopment Zone
6    Act. For partners, shareholders of Subchapter S
7    corporations, and owners of limited liability companies,
8    if the liability company is treated as a partnership for
9    purposes of federal and State income taxation, there shall
10    be allowed a credit under this subsection (f) to be
11    determined in accordance with the determination of income
12    and distributive share of income under Sections 702 and 704
13    and Subchapter S of the Internal Revenue Code. The credit
14    shall be .5% of the basis for such property. The credit
15    shall be available only in the taxable year in which the
16    property is placed in service in the Enterprise Zone or
17    River Edge Redevelopment Zone and shall not be allowed to
18    the extent that it would reduce a taxpayer's liability for
19    the tax imposed by subsections (a) and (b) of this Section
20    to below zero. For tax years ending on or after December
21    31, 1985, the credit shall be allowed for the tax year in
22    which the property is placed in service, or, if the amount
23    of the credit exceeds the tax liability for that year,
24    whether it exceeds the original liability or the liability
25    as later amended, such excess may be carried forward and
26    applied to the tax liability of the 5 taxable years

 

 

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1    following the excess credit year. The credit shall be
2    applied to the earliest year for which there is a
3    liability. If there is credit from more than one tax year
4    that is available to offset a liability, the credit
5    accruing first in time shall be applied first.
6        (2) The term qualified property means property which:
7            (A) is tangible, whether new or used, including
8        buildings and structural components of buildings;
9            (B) is depreciable pursuant to Section 167 of the
10        Internal Revenue Code, except that "3-year property"
11        as defined in Section 168(c)(2)(A) of that Code is not
12        eligible for the credit provided by this subsection
13        (f);
14            (C) is acquired by purchase as defined in Section
15        179(d) of the Internal Revenue Code;
16            (D) is used in the Enterprise Zone or River Edge
17        Redevelopment Zone by the taxpayer; and
18            (E) has not been previously used in Illinois in
19        such a manner and by such a person as would qualify for
20        the credit provided by this subsection (f) or
21        subsection (e).
22        (3) The basis of qualified property shall be the basis
23    used to compute the depreciation deduction for federal
24    income tax purposes.
25        (4) If the basis of the property for federal income tax
26    depreciation purposes is increased after it has been placed

 

 

09700SB0744ham001- 104 -LRB097 04465 ASK 56143 a

1    in service in the Enterprise Zone or River Edge
2    Redevelopment Zone by the taxpayer, the amount of such
3    increase shall be deemed property placed in service on the
4    date of such increase in basis.
5        (5) The term "placed in service" shall have the same
6    meaning as under Section 46 of the Internal Revenue Code.
7        (6) If during any taxable year, any property ceases to
8    be qualified property in the hands of the taxpayer within
9    48 months after being placed in service, or the situs of
10    any qualified property is moved outside the Enterprise Zone
11    or River Edge Redevelopment Zone within 48 months after
12    being placed in service, the tax imposed under subsections
13    (a) and (b) of this Section for such taxable year shall be
14    increased. Such increase shall be determined by (i)
15    recomputing the investment credit which would have been
16    allowed for the year in which credit for such property was
17    originally allowed by eliminating such property from such
18    computation, and (ii) subtracting such recomputed credit
19    from the amount of credit previously allowed. For the
20    purposes of this paragraph (6), a reduction of the basis of
21    qualified property resulting from a redetermination of the
22    purchase price shall be deemed a disposition of qualified
23    property to the extent of such reduction.
24        (7) There shall be allowed an additional credit equal
25    to 0.5% of the basis of qualified property placed in
26    service during the taxable year in a River Edge

 

 

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1    Redevelopment Zone, provided such property is placed in
2    service on or after July 1, 2006, and the taxpayer's base
3    employment within Illinois has increased by 1% or more over
4    the preceding year as determined by the taxpayer's
5    employment records filed with the Illinois Department of
6    Employment Security. Taxpayers who are new to Illinois
7    shall be deemed to have met the 1% growth in base
8    employment for the first year in which they file employment
9    records with the Illinois Department of Employment
10    Security. If, in any year, the increase in base employment
11    within Illinois over the preceding year is less than 1%,
12    the additional credit shall be limited to that percentage
13    times a fraction, the numerator of which is 0.5% and the
14    denominator of which is 1%, but shall not exceed 0.5%.
15    (g) Jobs Tax Credit; Enterprise Zone, River Edge
16Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
17        (1) A taxpayer conducting a trade or business in an
18    enterprise zone or a High Impact Business designated by the
19    Department of Commerce and Economic Opportunity or for
20    taxable years ending on or after December 31, 2006, in a
21    River Edge Redevelopment Zone conducting a trade or
22    business in a federally designated Foreign Trade Zone or
23    Sub-Zone shall be allowed a credit against the tax imposed
24    by subsections (a) and (b) of this Section in the amount of
25    $500 per eligible employee hired to work in the zone during
26    the taxable year.

 

 

09700SB0744ham001- 106 -LRB097 04465 ASK 56143 a

1        (2) To qualify for the credit:
2            (A) the taxpayer must hire 5 or more eligible
3        employees to work in an enterprise zone, River Edge
4        Redevelopment Zone, or federally designated Foreign
5        Trade Zone or Sub-Zone during the taxable year;
6            (B) the taxpayer's total employment within the
7        enterprise zone, River Edge Redevelopment Zone, or
8        federally designated Foreign Trade Zone or Sub-Zone
9        must increase by 5 or more full-time employees beyond
10        the total employed in that zone at the end of the
11        previous tax year for which a jobs tax credit under
12        this Section was taken, or beyond the total employed by
13        the taxpayer as of December 31, 1985, whichever is
14        later; and
15            (C) the eligible employees must be employed 180
16        consecutive days in order to be deemed hired for
17        purposes of this subsection.
18        (3) An "eligible employee" means an employee who is:
19            (A) Certified by the Department of Commerce and
20        Economic Opportunity as "eligible for services"
21        pursuant to regulations promulgated in accordance with
22        Title II of the Job Training Partnership Act, Training
23        Services for the Disadvantaged or Title III of the Job
24        Training Partnership Act, Employment and Training
25        Assistance for Dislocated Workers Program.
26            (B) Hired after the enterprise zone, River Edge

 

 

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1        Redevelopment Zone, or federally designated Foreign
2        Trade Zone or Sub-Zone was designated or the trade or
3        business was located in that zone, whichever is later.
4            (C) Employed in the enterprise zone, River Edge
5        Redevelopment Zone, or Foreign Trade Zone or Sub-Zone.
6        An employee is employed in an enterprise zone or
7        federally designated Foreign Trade Zone or Sub-Zone if
8        his services are rendered there or it is the base of
9        operations for the services performed.
10            (D) A full-time employee working 30 or more hours
11        per week.
12        (4) For tax years ending on or after December 31, 1985
13    and prior to December 31, 1988, the credit shall be allowed
14    for the tax year in which the eligible employees are hired.
15    For tax years ending on or after December 31, 1988, the
16    credit shall be allowed for the tax year immediately
17    following the tax year in which the eligible employees are
18    hired. If the amount of the credit exceeds the tax
19    liability for that year, whether it exceeds the original
20    liability or the liability as later amended, such excess
21    may be carried forward and applied to the tax liability of
22    the 5 taxable years following the excess credit year. The
23    credit shall be applied to the earliest year for which
24    there is a liability. If there is credit from more than one
25    tax year that is available to offset a liability, earlier
26    credit shall be applied first.

 

 

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1        (5) The Department of Revenue shall promulgate such
2    rules and regulations as may be deemed necessary to carry
3    out the purposes of this subsection (g).
4        (6) The credit shall be available for eligible
5    employees hired on or after January 1, 1986.
6    (h) Investment credit; High Impact Business.
7        (1) Subject to subsections (b) and (b-5) of Section 5.5
8    of the Illinois Enterprise Zone Act, a taxpayer shall be
9    allowed a credit against the tax imposed by subsections (a)
10    and (b) of this Section for investment in qualified
11    property which is placed in service by a Department of
12    Commerce and Economic Opportunity designated High Impact
13    Business. The credit shall be .5% of the basis for such
14    property. The credit shall not be available (i) until the
15    minimum investments in qualified property set forth in
16    subdivision (a)(3)(A) of Section 5.5 of the Illinois
17    Enterprise Zone Act have been satisfied or (ii) until the
18    time authorized in subsection (b-5) of the Illinois
19    Enterprise Zone Act for entities designated as High Impact
20    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
21    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
22    Act, and shall not be allowed to the extent that it would
23    reduce a taxpayer's liability for the tax imposed by
24    subsections (a) and (b) of this Section to below zero. The
25    credit applicable to such investments shall be taken in the
26    taxable year in which such investments have been completed.

 

 

09700SB0744ham001- 109 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 110 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 111 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 112 -LRB097 04465 ASK 56143 a

1(d) of this Section. This credit shall be computed by
2multiplying the tax imposed by subsections (c) and (d) of this
3Section by a fraction, the numerator of which is base income
4allocable to Illinois and the denominator of which is Illinois
5base income, and further multiplying the product by the tax
6rate imposed by subsections (a) and (b) of this Section.
7    Any credit earned on or after December 31, 1986 under this
8subsection which is unused in the year the credit is computed
9because it exceeds the tax liability imposed by subsections (a)
10and (b) for that year (whether it exceeds the original
11liability or the liability as later amended) may be carried
12forward and applied to the tax liability imposed by subsections
13(a) and (b) of the 5 taxable years following the excess credit
14year, provided that no credit may be carried forward to any
15year ending on or after December 31, 2003. This credit shall be
16applied first to the earliest year for which there is a
17liability. If there is a credit under this subsection from more
18than one tax year that is available to offset a liability the
19earliest credit arising under this subsection shall be applied
20first.
21    If, during any taxable year ending on or after December 31,
221986, the tax imposed by subsections (c) and (d) of this
23Section for which a taxpayer has claimed a credit under this
24subsection (i) is reduced, the amount of credit for such tax
25shall also be reduced. Such reduction shall be determined by
26recomputing the credit to take into account the reduced tax

 

 

09700SB0744ham001- 113 -LRB097 04465 ASK 56143 a

1imposed by subsections (c) and (d). If any portion of the
2reduced amount of credit has been carried to a different
3taxable year, an amended return shall be filed for such taxable
4year to reduce the amount of credit claimed.
5    (j) Training expense credit. Beginning with tax years
6ending on or after December 31, 1986 and prior to December 31,
72003, a taxpayer shall be allowed a credit against the tax
8imposed by subsections (a) and (b) under this Section for all
9amounts paid or accrued, on behalf of all persons employed by
10the taxpayer in Illinois or Illinois residents employed outside
11of Illinois by a taxpayer, for educational or vocational
12training in semi-technical or technical fields or semi-skilled
13or skilled fields, which were deducted from gross income in the
14computation of taxable income. The credit against the tax
15imposed by subsections (a) and (b) shall be 1.6% of such
16training expenses. 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 (j) 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    Any credit allowed under this subsection which is unused in
25the year the credit is earned may be carried forward to each of
26the 5 taxable years following the year for which the credit is

 

 

09700SB0744ham001- 114 -LRB097 04465 ASK 56143 a

1first computed until it is used. This credit shall be applied
2first to the earliest year for which there is a liability. If
3there is a credit under this subsection from more than one tax
4year that is available to offset a liability the earliest
5credit arising under this subsection shall be applied first. No
6carryforward credit may be claimed in any tax year ending on or
7after December 31, 2003.
8    (k) Research and development credit.
9    For tax years ending after July 1, 1990 and prior to
10December 31, 2003, and beginning again for tax years ending on
11or after December 31, 2004, and ending prior to January 1,
122011, a taxpayer shall be allowed a credit against the tax
13imposed by subsections (a) and (b) of this Section for
14increasing research activities in this State. The credit
15allowed against the tax imposed by subsections (a) and (b)
16shall be equal to 6 1/2% of the qualifying expenditures for
17increasing research activities in this State. For partners,
18shareholders of subchapter S corporations, and owners of
19limited liability companies, if the liability company is
20treated as a partnership for purposes of federal and State
21income taxation, there shall be allowed a credit under this
22subsection to be determined in accordance with the
23determination of income and distributive share of income under
24Sections 702 and 704 and subchapter S of the Internal Revenue
25Code.
26    For purposes of this subsection, "qualifying expenditures"

 

 

09700SB0744ham001- 115 -LRB097 04465 ASK 56143 a

1means the qualifying expenditures as defined for the federal
2credit for increasing research activities which would be
3allowable under Section 41 of the Internal Revenue Code and
4which are conducted in this State, "qualifying expenditures for
5increasing research activities in this State" means the excess
6of qualifying expenditures for the taxable year in which
7incurred over qualifying expenditures for the base period,
8"qualifying expenditures for the base period" means the average
9of the qualifying expenditures for each year in the base
10period, and "base period" means the 3 taxable years immediately
11preceding the taxable year for which the determination is being
12made.
13    Any credit in excess of the tax liability for the taxable
14year may be carried forward. A taxpayer may elect to have the
15unused credit shown on its final completed return carried over
16as a credit against the tax liability for the following 5
17taxable years or until it has been fully used, whichever occurs
18first; provided that no credit earned in a tax year ending
19prior to December 31, 2003 may be carried forward to any year
20ending on or after December 31, 2003, and no credit may be
21carried forward to any taxable year ending on or after January
221, 2011.
23    If an unused credit is carried forward to a given year from
242 or more earlier years, that credit arising in the earliest
25year will be applied first against the tax liability for the
26given year. If a tax liability for the given year still

 

 

09700SB0744ham001- 116 -LRB097 04465 ASK 56143 a

1remains, the credit from the next earliest year will then be
2applied, and so on, until all credits have been used or no tax
3liability for the given year remains. Any remaining unused
4credit or credits then will be carried forward to the next
5following year in which a tax liability is incurred, except
6that no credit can be carried forward to a year which is more
7than 5 years after the year in which the expense for which the
8credit is given was incurred.
9    No inference shall be drawn from this amendatory Act of the
1091st General Assembly in construing this Section for taxable
11years beginning before January 1, 1999.
12    (l) Environmental Remediation Tax Credit.
13        (i) For tax years ending after December 31, 1997 and on
14    or before December 31, 2001, a taxpayer shall be allowed a
15    credit against the tax imposed by subsections (a) and (b)
16    of this Section for certain amounts paid for unreimbursed
17    eligible remediation costs, as specified in this
18    subsection. For purposes of this Section, "unreimbursed
19    eligible remediation costs" means costs approved by the
20    Illinois Environmental Protection Agency ("Agency") under
21    Section 58.14 of the Environmental Protection Act that were
22    paid in performing environmental remediation at a site for
23    which a No Further Remediation Letter was issued by the
24    Agency and recorded under Section 58.10 of the
25    Environmental Protection Act. The credit must be claimed
26    for the taxable year in which Agency approval of the

 

 

09700SB0744ham001- 117 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 118 -LRB097 04465 ASK 56143 a

1    total credit allowed shall not exceed $40,000 per year with
2    a maximum total of $150,000 per site. For partners and
3    shareholders of subchapter S corporations, there shall be
4    allowed a credit under this subsection to be determined in
5    accordance with the determination of income and
6    distributive share of income under Sections 702 and 704 and
7    subchapter S of the Internal Revenue Code.
8        (ii) A credit allowed under this subsection that is
9    unused in the year the credit is earned may be carried
10    forward to each of the 5 taxable years following the year
11    for which the credit is first earned until it is used. The
12    term "unused credit" does not include any amounts of
13    unreimbursed eligible remediation costs in excess of the
14    maximum credit per site authorized under paragraph (i).
15    This credit shall be applied first to the earliest year for
16    which there is a liability. If there is a credit under this
17    subsection from more than one tax year that is available to
18    offset a liability, the earliest credit arising under this
19    subsection shall be applied first. A credit allowed under
20    this subsection may be sold to a buyer as part of a sale of
21    all or part of the remediation site for which the credit
22    was granted. The purchaser of a remediation site and the
23    tax credit shall succeed to the unused credit and remaining
24    carry-forward period of the seller. To perfect the
25    transfer, the assignor shall record the transfer in the
26    chain of title for the site and provide written notice to

 

 

09700SB0744ham001- 119 -LRB097 04465 ASK 56143 a

1    the Director of the Illinois Department of Revenue of the
2    assignor's intent to sell the remediation site and the
3    amount of the tax credit to be transferred as a portion of
4    the sale. In no event may a credit be transferred to any
5    taxpayer if the taxpayer or a related party would not be
6    eligible under the provisions of subsection (i).
7        (iii) For purposes of this Section, the term "site"
8    shall have the same meaning as under Section 58.2 of the
9    Environmental Protection Act.
10    (m) Education expense credit. Beginning with tax years
11ending after December 31, 1999, a taxpayer who is the custodian
12of one or more qualifying pupils shall be allowed a credit
13against the tax imposed by subsections (a) and (b) of this
14Section for qualified education expenses incurred on behalf of
15the qualifying pupils. The credit shall be equal to 25% of
16qualified education expenses, but in no event may the total
17credit under this subsection claimed by a family that is the
18custodian of qualifying pupils exceed $500. In no event shall a
19credit under this subsection reduce the taxpayer's liability
20under this Act to less than zero. This subsection is exempt
21from the provisions of Section 250 of this Act.
22    For purposes of this subsection:
23    "Qualifying pupils" means individuals who (i) are
24residents of the State of Illinois, (ii) are under the age of
2521 at the close of the school year for which a credit is
26sought, and (iii) during the school year for which a credit is

 

 

09700SB0744ham001- 120 -LRB097 04465 ASK 56143 a

1sought were full-time pupils enrolled in a kindergarten through
2twelfth grade education program at any school, as defined in
3this subsection.
4    "Qualified education expense" means the amount incurred on
5behalf of a qualifying pupil in excess of $250 for tuition,
6book fees, and lab fees at the school in which the pupil is
7enrolled during the regular school year.
8    "School" means any public or nonpublic elementary or
9secondary school in Illinois that is in compliance with Title
10VI of the Civil Rights Act of 1964 and attendance at which
11satisfies the requirements of Section 26-1 of the School Code,
12except that nothing shall be construed to require a child to
13attend any particular public or nonpublic school to qualify for
14the credit under this Section.
15    "Custodian" means, with respect to qualifying pupils, an
16Illinois resident who is a parent, the parents, a legal
17guardian, or the legal guardians of the qualifying pupils.
18    (n) River Edge Redevelopment Zone site remediation tax
19credit.
20        (i) For tax years ending on or after December 31, 2006,
21    a taxpayer shall be allowed a credit against the tax
22    imposed by subsections (a) and (b) of this Section for
23    certain amounts paid for unreimbursed eligible remediation
24    costs, as specified in this subsection. For purposes of
25    this Section, "unreimbursed eligible remediation costs"
26    means costs approved by the Illinois Environmental

 

 

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1    Protection Agency ("Agency") under Section 58.14a of the
2    Environmental Protection Act that were paid in performing
3    environmental remediation at a site within a River Edge
4    Redevelopment Zone for which a No Further Remediation
5    Letter was issued by the Agency and recorded under Section
6    58.10 of the Environmental Protection Act. The credit must
7    be claimed for the taxable year in which Agency approval of
8    the eligible remediation costs is granted. The credit is
9    not available to any taxpayer if the taxpayer or any
10    related party caused or contributed to, in any material
11    respect, a release of regulated substances on, in, or under
12    the site that was identified and addressed by the remedial
13    action pursuant to the Site Remediation Program of the
14    Environmental Protection Act. Determinations as to credit
15    availability for purposes of this Section shall be made
16    consistent with rules adopted by the Pollution Control
17    Board pursuant to the Illinois Administrative Procedure
18    Act for the administration and enforcement of Section 58.9
19    of the Environmental Protection Act. For purposes of this
20    Section, "taxpayer" includes a person whose tax attributes
21    the taxpayer has succeeded to under Section 381 of the
22    Internal Revenue Code and "related party" includes the
23    persons disallowed a deduction for losses by paragraphs
24    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
25    Code by virtue of being a related taxpayer, as well as any
26    of its partners. The credit allowed against the tax imposed

 

 

09700SB0744ham001- 122 -LRB097 04465 ASK 56143 a

1    by subsections (a) and (b) shall be equal to 25% of the
2    unreimbursed eligible remediation costs in excess of
3    $100,000 per site.
4        (ii) A credit allowed under this subsection that is
5    unused in the year the credit is earned may be carried
6    forward to each of the 5 taxable years following the year
7    for which the credit is first earned until it is used. This
8    credit shall be applied first to the earliest year for
9    which there is a liability. If there is a credit under this
10    subsection from more than one tax year that is available to
11    offset a liability, the earliest credit arising under this
12    subsection shall be applied first. A credit allowed under
13    this subsection may be sold to a buyer as part of a sale of
14    all or part of the remediation site for which the credit
15    was granted. The purchaser of a remediation site and the
16    tax credit shall succeed to the unused credit and remaining
17    carry-forward period of the seller. To perfect the
18    transfer, the assignor shall record the transfer in the
19    chain of title for the site and provide written notice to
20    the Director of the Illinois Department of Revenue of the
21    assignor's intent to sell the remediation site and the
22    amount of the tax credit to be transferred as a portion of
23    the sale. In no event may a credit be transferred to any
24    taxpayer if the taxpayer or a related party would not be
25    eligible under the provisions of subsection (i).
26        (iii) For purposes of this Section, the term "site"

 

 

09700SB0744ham001- 123 -LRB097 04465 ASK 56143 a

1    shall have the same meaning as under Section 58.2 of the
2    Environmental Protection Act.
3(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;
496-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.
51-13-11; 97-2, eff. 5-6-11.)
 
6    Section 90-23. The Property Tax Code is amended by adding
7Section 15-144 as follows:
 
8    (35 ILCS 200/15-144 new)
9    Sec. 15-144. Chicago Casino Development Authority. All
10property owned by the Chicago Casino Development Authority is
11exempt. Any property owned by the Chicago Casino Development
12Authority and leased to an entity that is not exempt shall
13remain exempt so long as it is used for a public purpose.
 
14    Section 90-25. 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

 

 

09700SB0744ham001- 124 -LRB097 04465 ASK 56143 a

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

 

 

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1    (c) The books, accounts, records, and files of the limited
2purpose branch's transactions shall be maintained at the
3licensee's licensed location. The licensee shall notify the
4Director of the licensed location at which the books, accounts,
5records, and files shall be maintained.
6    (d) The licensee shall prominently display at the limited
7purpose branch the address and telephone number of the
8licensee's licensed location.
9    (e) No other business shall be conducted at the site of the
10limited purpose branch unless authorized by the Director.
11    (f) The Director shall make and enforce reasonable rules
12for the conduct of a limited purpose branch.
13    (g) A limited purpose branch may not be located within
141,000 feet of a facility operated by an inter-track wagering
15licensee or an organization licensee subject to the Illinois
16Horse Racing Act of 1975, on a riverboat or in a casino subject
17to the Illinois Riverboat Gambling Act, or within 1,000 feet of
18the location at which the riverboat docks or within 1,000 feet
19of a casino.
20(Source: P.A. 90-437, eff. 1-1-98.)
 
21    Section 90-35. The Illinois Horse Racing Act of 1975 is
22amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 15.1,
2318, 19, 20, 24, 26, 27, 28, 28.1, 30, 30.5, 31, 31.1, 32.1, 36,
24and 40 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
2529.2, 34.3, and 56 as follows:
 

 

 

09700SB0744ham001- 126 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 127 -LRB097 04465 ASK 56143 a

1    Sec. 3.11. "Organization Licensee" means any person
2receiving an organization license from the Board to conduct a
3race meeting or meetings. With respect only to electronic
4gaming, "organization licensee" includes the authorization for
5an electronic gaming license under subsection (a) of Section 56
6of this Act.
7(Source: P.A. 79-1185.)
 
8    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
9    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
10system of wagering" means a form of wagering on the outcome of
11horse races in which wagers are made in various denominations
12on a horse or horses and all wagers for each race are pooled
13and held by a licensee for distribution in a manner approved by
14the Board. "Pari-mutuel system of wagering" shall not include
15wagering on historic races. Wagers may be placed via any method
16or at any location authorized under this Act.
17(Source: P.A. 96-762, eff. 8-25-09.)
 
18    (230 ILCS 5/3.31 new)
19    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
20receipts" means the gross receipts less winnings paid to
21wagerers.
 
22    (230 ILCS 5/3.32 new)
23    Sec. 3.32. Gross receipts. "Gross receipts" means the total

 

 

09700SB0744ham001- 128 -LRB097 04465 ASK 56143 a

1amount of money exchanged for the purchase of chips, tokens, or
2electronic cards by riverboat or casino patrons or electronic
3gaming patrons.
 
4    (230 ILCS 5/3.33 new)
5    Sec. 3.33. Electronic gaming. "Electronic gaming" means
6slot machine gambling, video game of chance gambling, or
7gambling with electronic gambling games as defined in the
8Illinois Gambling Act or defined by the Illinois Gaming Board
9that is conducted at a race track pursuant to an electronic
10gaming license.
 
11    (230 ILCS 5/3.35 new)
12    Sec. 3.35. Electronic gaming license. "Electronic gaming
13license" means a license issued by the Illinois Gaming Board
14under Section 7.6 of the Illinois Gambling Act authorizing
15electronic gaming at an electronic gaming facility.
 
16    (230 ILCS 5/3.36 new)
17    Sec. 3.36. Electronic gaming facility. "Electronic gaming
18facility" means that portion of an organization licensee's race
19track facility at which electronic gaming is conducted.
 
20    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
21    Sec. 6. Restrictions on Board members.
22    (a) No person shall be appointed a member of the Board or

 

 

09700SB0744ham001- 129 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 130 -LRB097 04465 ASK 56143 a

1other state, or the United States.
2    (c) No member of the Board or employee shall engage in any
3political activity. For the purposes of this Section,
4"political" means any activity in support of or in connection
5with any campaign for State or local elective office or any
6political organization, but does not include activities (i)
7relating to the support or opposition of any executive,
8legislative, or administrative action (as those terms are
9defined in Section 2 of the Lobbyist Registration Act), (ii)
10relating to collective bargaining, or (iii) that are otherwise
11in furtherance of the person's official State duties or
12governmental and public service functions.
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, or entity doing business
26with the Board.

 

 

09700SB0744ham001- 131 -LRB097 04465 ASK 56143 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

 

 

09700SB0744ham001- 132 -LRB097 04465 ASK 56143 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    Upon application, the Board shall issue a license to the
23Illinois State Fairgrounds Racetrack Authority authorizing the
24pari-mutuel system of wagering on live harness and Quarter
25Horse races, inter-track wagering, simulcast wagering, and
26advanced deposit wagering (if otherwise authorized by law)

 

 

09700SB0744ham001- 133 -LRB097 04465 ASK 56143 a

1through a racing contractor, as that term is defined in the
2Illinois State Fairgrounds Racetrack Authority Act, for up to 9
3months of each year at the Illinois State Fairgrounds in
4Sangamon County. Revenues received by the Board from this
5license shall be deposited into the Horse Racing Fund.
6    The Illinois State Fairgrounds Racetrack Authority shall
7enjoy all of the rights of a "host track" as defined by Section
83.075 of this Act.
9    The Illinois State Fairgrounds Racetrack Authority shall
10have the right to operate or affiliate with up to 6 inter-track
11wagering locations at any location within 90 miles of the
12Illinois State Fairgrounds, subject to all of the general
13restrictions set forth in subsection (h) of Section 26 of this
14Act.
15    Notwithstanding any provision of law to the contrary, it
16shall be lawful for any licensee to operate pari-mutuel
17wagering or contract with the Department of Agriculture to
18operate pari-mutuel wagering at the DuQuoin State Fairgrounds
19or for the Department to enter into contracts with a licensee,
20employ its owners, employees or agents and employ such other
21occupation licensees as the Department deems necessary in
22connection with race meetings and wagerings.
23    (b) The Board is vested with the full power to promulgate
24reasonable rules and regulations for the purpose of
25administering the provisions of this Act and to prescribe
26reasonable rules, regulations and conditions under which all

 

 

09700SB0744ham001- 134 -LRB097 04465 ASK 56143 a

1horse race meetings or wagering in the State shall be
2conducted. Such reasonable rules and regulations are to provide
3for the prevention of practices detrimental to the public
4interest and to promote the best interests of horse racing and
5to impose penalties for violations thereof.
6    (c) The Board, and any person or persons to whom it
7delegates this power, is vested with the power to enter the
8facilities and other places of business of any licensee to
9determine whether there has been compliance with the provisions
10of this Act and its rules and regulations.
11    (d) The Board, and any person or persons to whom it
12delegates this power, is vested with the authority to
13investigate alleged violations of the provisions of this Act,
14its reasonable rules and regulations, orders and final
15decisions; the Board shall take appropriate disciplinary
16action against any licensee or occupation licensee for
17violation thereof or institute appropriate legal action for the
18enforcement thereof.
19    (e) The Board, and any person or persons to whom it
20delegates this power, may eject or exclude from any race
21meeting or the facilities of any licensee, or any part thereof,
22any occupation licensee or any other individual whose conduct
23or reputation is such that his presence on those facilities
24may, in the opinion of the Board, call into question the
25honesty and integrity of horse racing or wagering or interfere
26with the orderly conduct of horse racing or wagering; provided,

 

 

09700SB0744ham001- 135 -LRB097 04465 ASK 56143 a

1however, that no person shall be excluded or ejected from the
2facilities of any licensee solely on the grounds of race,
3color, creed, national origin, ancestry, or sex. The power to
4eject or exclude an occupation licensee or other individual may
5be exercised for just cause by the licensee or the Board,
6subject to subsequent hearing by the Board as to the propriety
7of said exclusion.
8    (f) The Board is vested with the power to acquire,
9establish, maintain and operate (or provide by contract to
10maintain and operate) testing laboratories and related
11facilities, for the purpose of conducting saliva, blood, urine
12and other tests on the horses run or to be run in any horse race
13meeting, including races run at county fairs, and to purchase
14all equipment and supplies deemed necessary or desirable in
15connection with any such testing laboratories and related
16facilities and all such tests.
17    (g) The Board may require that the records, including
18financial or other statements of any licensee or any person
19affiliated with the licensee who is involved directly or
20indirectly in the activities of any licensee as regulated under
21this Act to the extent that those financial or other statements
22relate to such activities be kept in such manner as prescribed
23by the Board, and that Board employees shall have access to
24those records during reasonable business hours. Within 120 days
25of the end of its fiscal year, each licensee shall transmit to
26the Board an audit of the financial transactions and condition

 

 

09700SB0744ham001- 136 -LRB097 04465 ASK 56143 a

1of the licensee's total operations. All audits shall be
2conducted by certified public accountants. Each certified
3public accountant must be registered in the State of Illinois
4under the Illinois Public Accounting Act. The compensation for
5each certified public accountant shall be paid directly by the
6licensee to the certified public accountant. A licensee shall
7also submit any other financial or related information the
8Board deems necessary to effectively administer this Act and
9all rules, regulations, and final decisions promulgated under
10this Act.
11    (h) The Board shall name and appoint in the manner provided
12by the rules and regulations of the Board: an Executive
13Director; a State director of mutuels; State veterinarians and
14representatives to take saliva, blood, urine and other tests on
15horses; licensing personnel; revenue inspectors; and State
16seasonal employees (excluding admission ticket sellers and
17mutuel clerks). All of those named and appointed as provided in
18this subsection shall serve during the pleasure of the Board;
19their compensation shall be determined by the Board and be paid
20in the same manner as other employees of the Board under this
21Act.
22    (i) The Board shall require that there shall be 3 stewards
23at each horse race meeting, at least 2 of whom shall be named
24and appointed by the Board. Stewards appointed or approved by
25the Board, while performing duties required by this Act or by
26the Board, shall be entitled to the same rights and immunities

 

 

09700SB0744ham001- 137 -LRB097 04465 ASK 56143 a

1as granted to Board members and Board employees in Section 10
2of this Act.
3    (j) The Board may discharge any Board employee who fails or
4refuses for any reason to comply with the rules and regulations
5of the Board, or who, in the opinion of the Board, is guilty of
6fraud, dishonesty or who is proven to be incompetent. The Board
7shall have no right or power to determine who shall be
8officers, directors or employees of any licensee, or their
9salaries except the Board may, by rule, require that all or any
10officials or employees in charge of or whose duties relate to
11the actual running of races be approved by the Board.
12    (k) The Board is vested with the power to appoint delegates
13to execute any of the powers granted to it under this Section
14for the purpose of administering this Act and any rules or
15regulations promulgated in accordance with this Act.
16    (l) The Board is vested with the power to impose civil
17penalties of up to $5,000 against an individual and up to
18$10,000 against a licensee for each violation of any provision
19of this Act, any rules adopted by the Board, any order of the
20Board or any other action which, in the Board's discretion, is
21a detriment or impediment to horse racing or wagering. All such
22civil penalties shall be deposited into the Horse Racing Fund.
23    (m) The Board is vested with the power to prescribe a form
24to be used by licensees as an application for employment for
25employees of each licensee.
26    (n) The Board shall have the power to issue a license to

 

 

09700SB0744ham001- 138 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 139 -LRB097 04465 ASK 56143 a

1accessibility of race track patrons, to provide for the
2maximization of State revenue, and to generate increases in
3purse allotments to the horsemen, the Board shall require any
4licensee to staff the pari-mutuel department with adequate
5personnel.
6(Source: P.A. 91-239, eff. 1-1-00.)
 
7    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
8    Sec. 15. (a) The Board shall, in its discretion, issue
9occupation licenses to horse owners, trainers, harness
10drivers, jockeys, agents, apprentices, grooms, stable foremen,
11exercise persons, veterinarians, valets, blacksmiths,
12concessionaires and others designated by the Board whose work,
13in whole or in part, is conducted upon facilities within the
14State. Such occupation licenses will be obtained prior to the
15persons engaging in their vocation upon such facilities. The
16Board shall not license pari-mutuel clerks, parking
17attendants, security guards and employees of concessionaires.
18No occupation license shall be required of any person who works
19at facilities within this State as a pari-mutuel clerk, parking
20attendant, security guard or as an employee of a
21concessionaire. Concessionaires of the Illinois State Fair and
22DuQuoin State Fair and employees of the Illinois Department of
23Agriculture shall not be required to obtain an occupation
24license by the Board.
25    (b) Each application for an occupation license shall be on

 

 

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1forms prescribed by the Board. Such license, when issued, shall
2be for the period ending December 31 of each year, except that
3the Board in its discretion may grant 3-year licenses. The
4application shall be accompanied by a fee of not more than $25
5per year or, in the case of 3-year occupation license
6applications, a fee of not more than $60. Each applicant shall
7set forth in the application his full name and address, and if
8he had been issued prior occupation licenses or has been
9licensed in any other state under any other name, such name,
10his age, whether or not a permit or license issued to him in
11any other state has been suspended or revoked and if so whether
12such suspension or revocation is in effect at the time of the
13application, and such other information as the Board may
14require. Fees for registration of stable names shall not exceed
15$50.00.
16    (c) The Board may in its discretion refuse an occupation
17license to any person:
18        (1) who has been convicted of a crime;
19        (2) who is unqualified to perform the duties required
20    of such applicant;
21        (3) who fails to disclose or states falsely any
22    information called for in the application;
23        (4) who has been found guilty of a violation of this
24    Act or of the rules and regulations of the Board; or
25        (5) whose license or permit has been suspended, revoked
26    or denied for just cause in any other state.

 

 

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1    (d) The Board may suspend or revoke any occupation license:
2        (1) for violation of any of the provisions of this Act;
3    or
4        (2) for violation of any of the rules or regulations of
5    the Board; or
6        (3) for any cause which, if known to the Board, would
7    have justified the Board in refusing to issue such
8    occupation license; or
9        (4) for any other just cause.
10    (e)   Each applicant shall submit his or her fingerprints
11to the Department of State Police in the form and manner
12prescribed by the Department of State Police. These
13fingerprints shall be checked against the fingerprint records
14now and hereafter filed in the Department of State Police and
15Federal Bureau of Investigation criminal history records
16databases. The Department of State Police shall charge a fee
17for conducting the criminal history records check, which shall
18be deposited in the State Police Services Fund and shall not
19exceed the actual cost of the records check. The Department of
20State Police shall furnish, pursuant to positive
21identification, records of conviction to the Board. Each
22applicant for licensure shall submit with his occupation
23license application, on forms provided by the Board, 2 sets of
24his fingerprints. All such applicants shall appear in person at
25the location designated by the Board for the purpose of
26submitting such sets of fingerprints; however, with the prior

 

 

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1approval of a State steward, an applicant may have such sets of
2fingerprints taken by an official law enforcement agency and
3submitted to the Board.
4    (f) The Board may, in its discretion, issue an occupation
5license without submission of fingerprints if an applicant has
6been duly licensed in another recognized racing jurisdiction
7after submitting fingerprints that were subjected to a Federal
8Bureau of Investigation criminal history background check in
9that jurisdiction.
10(Source: P.A. 93-418, eff. 1-1-04.)
 
11    (230 ILCS 5/15.1)  (from Ch. 8, par. 37-15.1)
12    Sec. 15.1. Upon collection of the fee accompanying the
13application for an occupation license, the Board shall be
14authorized to make daily temporary deposits of the fees, for a
15period not to exceed 7 days, with the horsemen's bookkeeper at
16a race meeting. The horsemen's bookkeeper shall issue a check,
17payable to the order of the Illinois Racing Board, for monies
18deposited under this Section within 24 hours of receipt of the
19monies. Provided however, upon the issuance of the check by the
20horsemen's bookkeeper the check shall be deposited into the
21Horse Racing Fund in the State Treasury in accordance with the
22provisions of the "State Officers and Employees Money
23Disposition Act", approved June 9, 1911, as amended.
24(Source: P.A. 84-432.)
 

 

 

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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. All filing
9fees shall be deposited into the Horse Racing Fund.
10    (b) In addition to the filing fee of $1000 and the fees
11provided in subsection (j) of Section 20, each organization
12licensee shall pay a license fee of $100 for each racing
13program on which its daily pari-mutuel handle is $400,000 or
14more but less than $700,000, and a license fee of $200 for each
15racing program on which its daily pari-mutuel handle is
16$700,000 or more. The additional fees required to be paid under
17this Section by this amendatory Act of 1982 shall be remitted
18by the organization licensee to the Illinois Racing Board with
19each day's graduated privilege tax or pari-mutuel tax and
20breakage as provided under Section 27.
21    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
22Municipal Code," approved May 29, 1961, as now or hereafter
23amended, shall not apply to any license under this Act.
24(Source: P.A. 91-40, eff. 6-25-99.)
 
25    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)

 

 

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1    Sec. 19. (a) No organization license may be granted to
2conduct a horse race meeting:
3        (1) except as provided in subsection (c) of Section 21
4    of this Act, to any person at any place within 35 miles of
5    any other place licensed by the Board to hold a race
6    meeting on the same date during the same hours, the mileage
7    measurement used in this subsection (a) shall be certified
8    to the Board by the Bureau of Systems and Services in the
9    Illinois Department of Transportation as the most commonly
10    used public way of vehicular travel;
11        (2) to any person in default in the payment of any
12    obligation or debt due the State under this Act, provided
13    no applicant shall be deemed in default in the payment of
14    any obligation or debt due to the State under this Act as
15    long as there is pending a hearing of any kind relevant to
16    such matter;
17        (3) to any person who has been convicted of the
18    violation of any law of the United States or any State law
19    which provided as all or part of its penalty imprisonment
20    in any penal institution; to any person against whom there
21    is pending a Federal or State criminal charge; to any
22    person who is or has been connected with or engaged in the
23    operation of any illegal business; to any person who does
24    not enjoy a general reputation in his community of being an
25    honest, upright, law-abiding person; provided that none of
26    the matters set forth in this subparagraph (3) shall make

 

 

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1    any person ineligible to be granted an organization license
2    if the Board determines, based on circumstances of any such
3    case, that the granting of a license would not be
4    detrimental to the interests of horse racing and of the
5    public;
6        (4) to any person who does not at the time of
7    application for the organization license own or have a
8    contract or lease for the possession of a finished race
9    track suitable for the type of racing intended to be held
10    by the applicant and for the accommodation of the public.
11    (b) (Blank) Horse racing on Sunday shall be prohibited
12unless authorized by ordinance or referendum of the
13municipality in which a race track or any of its appurtenances
14or facilities are located, or utilized.
15    (c) If any person is ineligible to receive an organization
16license because of any of the matters set forth in subsection
17(a) (2) or subsection (a) (3) of this Section, any other or
18separate person that either (i) controls, directly or
19indirectly, such ineligible person or (ii) is controlled,
20directly or indirectly, by such ineligible person or by a
21person which controls, directly or indirectly, such ineligible
22person shall also be ineligible.
23(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
24    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
25    Sec. 20. (a) Any person desiring to conduct a horse race

 

 

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1meeting may apply to the Board for an organization license. The
2application shall be made on a form prescribed and furnished by
3the Board. The application shall specify:
4        (1) the dates on which it intends to conduct the horse
5    race meeting, which dates shall be provided under Section
6    21;
7        (2) the hours of each racing day between which it
8    intends to hold or conduct horse racing at such meeting;
9        (3) the location where it proposes to conduct the
10    meeting; and
11        (4) any other information the Board may reasonably
12    require.
13    (b) A separate application for an organization license
14shall be filed for each horse race meeting which such person
15proposes to hold. Any such application, if made by an
16individual, or by any individual as trustee, shall be signed
17and verified under oath by such individual. If made by
18individuals or a partnership, it shall be signed and verified
19under oath by at least 2 of such individuals or members of such
20partnership as the case may be. If made by an association,
21corporation, corporate trustee or any other entity, it shall be
22signed by the president and attested by the secretary or
23assistant secretary under the seal of such association, trust
24or corporation if it has a seal, and shall also be verified
25under oath by one of the signing officers.
26    (c) The application shall specify the name of the persons,

 

 

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

 

 

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1the applicants and its approval or disapproval of each
2application. No announcement shall be considered binding until
3a formal order is executed by the Board, which shall be
4executed no later than October 15 of that prior year. Absent
5the agreement of the affected organization licensees, the Board
6shall not grant overlapping race meetings to 2 or more tracks
7that are within 100 miles of each other to conduct the
8thoroughbred racing.
9    (e-1) In awarding standardbred racing dates for calendar
10year 2012 and thereafter, the Board shall award at least 310
11racing days, and each organization licensees shall average at
12least 12 races for each racing day awarded. The Board shall
13have the discretion to allocate those racing days among
14organization licensees requesting standardbred race dates.
15Once awarded by the Board, organization licensees awarded
16standardbred dates shall run at least 3,500 races in total
17during that calendar year.
18    (e-2) In awarding racing dates for calendar year 2012 and
19thereafter, the Board shall award racing dates and the
20organization licensees shall run at least 2,500 thoroughbred
21races at Cook County race tracks and 700 thoroughbred races at
22a race track in Madison County each year. In awarding racing
23dates under this subsection (e-2), the Board shall have the
24discretion to allocate those racing dates among organization
25licensees.
26    (e-3) The Board shall ensure that each organization

 

 

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1licensee shall individually run a sufficient number of races
2per year to qualify for an electronic gaming license under
3Section 7.6 of the Illinois Gambling Act.
4    (e-4) Notwithstanding the provisions of Section 7.6 of the
5Illinois Gambling Act, for each calendar year for which an
6electronic gaming licensee requests a number of live racing
7days under its organization license that is less than the
8number of days of live racing awarded in 2009 for its race
9track facility, the electronic gaming licensee may not conduct
10electronic gaming for the calendar year of such requested
11racing days. The number of days of live racing may be adjusted,
12on a year-by-year basis, because of weather or unsafe track
13conditions due to acts of God or an agreement between the
14organization licensee and the association representing the
15largest number of owners, trainers, or standardbred drivers who
16race horses at that organization licensee's racing meeting.
17    (e-5) In reviewing an application for the purpose of
18granting an organization license consistent with the best
19interests of the public and the sport of horse racing, the
20Board shall consider:
21        (1) the character, reputation, experience, and
22    financial integrity of the applicant and of any other
23    separate person that either:
24            (i) controls the applicant, directly or
25        indirectly, or
26            (ii) is controlled, directly or indirectly, by

 

 

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1        that applicant or by a person who controls, directly or
2        indirectly, that applicant;
3        (2) the applicant's facilities or proposed facilities
4    for conducting horse racing;
5        (3) the total revenue without regard to Section 32.1 to
6    be derived by the State and horsemen from the applicant's
7    conducting a race meeting;
8        (4) the applicant's good faith affirmative action plan
9    to recruit, train, and upgrade minorities in all employment
10    classifications;
11        (5) the applicant's financial ability to purchase and
12    maintain adequate liability and casualty insurance;
13        (6) the applicant's proposed and prior year's
14    promotional and marketing activities and expenditures of
15    the applicant associated with those activities;
16        (7) an agreement, if any, among organization licensees
17    as provided in subsection (b) of Section 21 of this Act;
18    and
19        (8) the extent to which the applicant exceeds or meets
20    other standards for the issuance of an organization license
21    that the Board shall adopt by rule.
22    In granting organization licenses and allocating dates for
23horse race meetings, the Board shall have discretion to
24determine an overall schedule, including required simulcasts
25of Illinois races by host tracks that will, in its judgment, be
26conducive to the best interests of the public and the sport of

 

 

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1horse racing.
2    (e-10) The Illinois Administrative Procedure Act shall
3apply to administrative procedures of the Board under this Act
4for the granting of an organization license, except that (1)
5notwithstanding the provisions of subsection (b) of Section
610-40 of the Illinois Administrative Procedure Act regarding
7cross-examination, the Board may prescribe rules limiting the
8right of an applicant or participant in any proceeding to award
9an organization license to conduct cross-examination of
10witnesses at that proceeding where that cross-examination
11would unduly obstruct the timely award of an organization
12license under subsection (e) of Section 20 of this Act; (2) the
13provisions of Section 10-45 of the Illinois Administrative
14Procedure Act regarding proposals for decision are excluded
15under this Act; (3) notwithstanding the provisions of
16subsection (a) of Section 10-60 of the Illinois Administrative
17Procedure Act regarding ex parte communications, the Board may
18prescribe rules allowing ex parte communications with
19applicants or participants in a proceeding to award an
20organization license where conducting those communications
21would be in the best interest of racing, provided all those
22communications are made part of the record of that proceeding
23pursuant to subsection (c) of Section 10-60 of the Illinois
24Administrative Procedure Act; (4) the provisions of Section 14a
25of this Act and the rules of the Board promulgated under that
26Section shall apply instead of the provisions of Article 10 of

 

 

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1the Illinois Administrative Procedure Act regarding
2administrative law judges; and (5) the provisions of subsection
3(d) of Section 10-65 of the Illinois Administrative Procedure
4Act that prevent summary suspension of a license pending
5revocation or other action shall not apply.
6    (f) The Board may allot racing dates to an organization
7licensee for more than one calendar year but for no more than 3
8successive calendar years in advance, provided that the Board
9shall review such allotment for more than one calendar year
10prior to each year for which such allotment has been made. The
11granting of an organization license to a person constitutes a
12privilege to conduct a horse race meeting under the provisions
13of this Act, and no person granted an organization license
14shall be deemed to have a vested interest, property right, or
15future expectation to receive an organization license in any
16subsequent year as a result of the granting of an organization
17license. Organization licenses shall be subject to revocation
18if the organization licensee has violated any provision of this
19Act or the rules and regulations promulgated under this Act or
20has been convicted of a crime or has failed to disclose or has
21stated falsely any information called for in the application
22for an organization license. Any organization license
23revocation proceeding shall be in accordance with Section 16
24regarding suspension and revocation of occupation licenses.
25    (f-5) If, (i) an applicant does not file an acceptance of
26the racing dates awarded by the Board as required under part

 

 

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1(1) of subsection (h) of this Section 20, or (ii) an
2organization licensee has its license suspended or revoked
3under this Act, the Board, upon conducting an emergency hearing
4as provided for in this Act, may reaward on an emergency basis
5pursuant to rules established by the Board, racing dates not
6accepted or the racing dates associated with any suspension or
7revocation period to one or more organization licensees, new
8applicants, or any combination thereof, upon terms and
9conditions that the Board determines are in the best interest
10of racing, provided, the organization licensees or new
11applicants receiving the awarded racing dates file an
12acceptance of those reawarded racing dates as required under
13paragraph (1) of subsection (h) of this Section 20 and comply
14with the other provisions of this Act. The Illinois
15Administrative Procedure Procedures Act shall not apply to the
16administrative procedures of the Board in conducting the
17emergency hearing and the reallocation of racing dates on an
18emergency basis.
19    (g) (Blank).
20    (h) The Board shall send the applicant a copy of its
21formally executed order by certified mail addressed to the
22applicant at the address stated in his application, which
23notice shall be mailed within 5 days of the date the formal
24order is executed.
25    Each applicant notified shall, within 10 days after receipt
26of the final executed order of the Board awarding racing dates:

 

 

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1        (1) file with the Board an acceptance of such award in
2    the form prescribed by the Board;
3        (2) pay to the Board an additional amount equal to $110
4    for each racing date awarded; and
5        (3) file with the Board the bonds required in Sections
6    21 and 25 at least 20 days prior to the first day of each
7    race meeting.
8Upon compliance with the provisions of paragraphs (1), (2), and
9(3) of this subsection (h), the applicant shall be issued an
10organization license.
11    If any applicant fails to comply with this Section or fails
12to pay the organization license fees herein provided, no
13organization license shall be issued to such applicant.
14(Source: P.A. 91-40, eff. 6-25-99; revised 9-16-10.)
 
15    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
16    Sec. 24. (a) No license shall be issued to or held by an
17organization licensee unless all of its officers, directors,
18and holders of ownership interests of at least 5% are first
19approved by the Board. The Board shall not give approval of an
20organization license application to any person who has been
21convicted of or is under an indictment for a crime of moral
22turpitude or has violated any provision of the racing law of
23this State or any rules of the Board.
24    (b) An organization licensee must notify the Board within
2510 days of any change in the holders of a direct or indirect

 

 

09700SB0744ham001- 155 -LRB097 04465 ASK 56143 a

1interest in the ownership of the organization licensee. The
2Board may, after hearing, revoke the organization license of
3any person who registers on its books or knowingly permits a
4direct or indirect interest in the ownership of that person
5without notifying the Board of the name of the holder in
6interest within this period.
7    (c) In addition to the provisions of subsection (a) of this
8Section, no person shall be granted an organization license if
9any public official of the State or member of his or her family
10holds any ownership or financial interest, directly or
11indirectly, in the person.
12    (d) No person which has been granted an organization
13license to hold a race meeting shall give to any public
14official or member of his family, directly or indirectly, for
15or without consideration, any interest in the person. The Board
16shall, after hearing, revoke the organization license granted
17to a person which has violated this subsection.
18    (e) (Blank).
19    (f) No organization licensee or concessionaire or officer,
20director or holder or controller of 5% or more legal or
21beneficial interest in any organization licensee or concession
22shall make any sort of gift or contribution that is prohibited
23under Article 10 of the State Officials and Employees Ethics
24Act of any kind or pay or give any money or other thing of value
25to any person who is a public official, or a candidate or
26nominee for public office if that payment or gift is prohibited

 

 

09700SB0744ham001- 156 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 157 -LRB097 04465 ASK 56143 a

1taxes and purses, an amount not to exceed 17% of all money
2wagered under subsection (a) of this Section, except as may
3otherwise be permitted under this Act.
4    (b-5) An individual may place a wager under the pari-mutuel
5system from any licensed location authorized under this Act
6provided that wager is electronically recorded in the manner
7described in Section 3.12 of this Act. Any wager made
8electronically by an individual while physically on the
9premises of a licensee shall be deemed to have been made at the
10premises of that licensee.
11    (c) Until January 1, 2000, the sum held by any licensee for
12payment of outstanding pari-mutuel tickets, if unclaimed prior
13to December 31 of the next year, shall be retained by the
14licensee for payment of such tickets until that date. Within 10
15days thereafter, the balance of such sum remaining unclaimed,
16less any uncashed supplements contributed by such licensee for
17the purpose of guaranteeing minimum distributions of any
18pari-mutuel pool, shall be paid to the Illinois Veterans'
19Rehabilitation Fund of the State treasury, except as provided
20in subsection (g) of Section 27 of this Act.
21    (c-5) Beginning January 1, 2000, the sum held by any
22licensee for payment of outstanding pari-mutuel tickets, if
23unclaimed prior to December 31 of the next year, shall be
24retained by the licensee for payment of such tickets until that
25date. Within 10 days thereafter, the balance of such sum
26remaining unclaimed, less any uncashed supplements contributed

 

 

09700SB0744ham001- 158 -LRB097 04465 ASK 56143 a

1by such licensee for the purpose of guaranteeing minimum
2distributions of any pari-mutuel pool, shall be evenly
3distributed to the purse account of the organization licensee
4and the organization licensee.
5    (d) A pari-mutuel ticket shall be honored until December 31
6of the next calendar year, and the licensee shall pay the same
7and may charge the amount thereof against unpaid money
8similarly accumulated on account of pari-mutuel tickets not
9presented for payment.
10    (e) No licensee shall knowingly permit any minor, other
11than an employee of such licensee or an owner, trainer, jockey,
12driver, or employee thereof, to be admitted during a racing
13program unless accompanied by a parent or guardian, or any
14minor to be a patron of the pari-mutuel system of wagering
15conducted or supervised by it. The admission of any
16unaccompanied minor, other than an employee of the licensee or
17an owner, trainer, jockey, driver, or employee thereof at a
18race track is a Class C misdemeanor.
19    (f) Notwithstanding the other provisions of this Act, an
20organization licensee may contract with an entity in another
21state or country to permit any legal wagering entity in another
22state or country to accept wagers solely within such other
23state or country on races conducted by the organization
24licensee in this State. Beginning January 1, 2000, these wagers
25shall not be subject to State taxation. Until January 1, 2000,
26when the out-of-State entity conducts a pari-mutuel pool

 

 

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1separate from the organization licensee, a privilege tax equal
2to 7 1/2% of all monies received by the organization licensee
3from entities in other states or countries pursuant to such
4contracts is imposed on the organization licensee, and such
5privilege tax shall be remitted to the Department of Revenue
6within 48 hours of receipt of the moneys from the simulcast.
7When the out-of-State entity conducts a combined pari-mutuel
8pool with the organization licensee, the tax shall be 10% of
9all monies received by the organization licensee with 25% of
10the receipts from this 10% tax to be distributed to the county
11in which the race was conducted.
12    An organization licensee may permit one or more of its
13races to be utilized for pari-mutuel wagering at one or more
14locations in other states and may transmit audio and visual
15signals of races the organization licensee conducts to one or
16more locations outside the State or country and may also permit
17pari-mutuel pools in other states or countries to be combined
18with its gross or net wagering pools or with wagering pools
19established by other states.
20    (g) A host track may accept interstate simulcast wagers on
21horse races conducted in other states or countries and shall
22control the number of signals and types of breeds of racing in
23its simulcast program, subject to the disapproval of the Board.
24The Board may prohibit a simulcast program only if it finds
25that the simulcast program is clearly adverse to the integrity
26of racing. The host track simulcast program shall include the

 

 

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1signal of live racing of all organization licensees. All
2non-host licensees and advance deposit wagering licensees
3shall carry the signal of and accept wagers on live racing of
4all organization licensees. Advance deposit wagering licensees
5shall not be permitted to accept out-of-state wagers on any
6Illinois signal provided pursuant to this Section without the
7approval and consent of the organization licensee providing the
8signal. Non-host licensees may carry the host track simulcast
9program and shall accept wagers on all races included as part
10of the simulcast program upon which wagering is permitted. All
11organization licensees shall provide their live signal to all
12advance deposit wagering licensees for a simulcast commission
13fee not to exceed 6% of the advance deposit wagering licensee's
14Illinois handle on the organization licensee's signal without
15prior approval by the Board. The Board may adopt rules under
16which it may permit simulcast commission fees in excess of 6%.
17The Board shall adopt rules limiting the interstate commission
18fees charged to an advance deposit wagering licensee. The Board
19shall adopt rules regarding advance deposit wagering on
20interstate simulcast races that shall reflect, among other
21things, the General Assembly's desire to maximize revenues to
22the State, horsemen purses, and organizational licensees.
23However, organization licensees providing live signals
24pursuant to the requirements of this subsection (g) may
25petition the Board to withhold their live signals from an
26advance deposit wagering licensee if the organization licensee

 

 

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1discovers and the Board finds reputable or credible information
2that the advance deposit wagering licensee is under
3investigation by another state or federal governmental agency,
4the advance deposit wagering licensee's license has been
5suspended in another state, or the advance deposit wagering
6licensee's license is in revocation proceedings in another
7state. The organization licensee's provision of their live
8signal to an advance deposit wagering licensee under this
9subsection (g) pertains to wagers placed from within Illinois.
10Advance deposit wagering licensees may place advance deposit
11wagering terminals at wagering facilities as a convenience to
12customers. The advance deposit wagering licensee shall not
13charge or collect any fee from purses for the placement of the
14advance deposit wagering terminals. The costs and expenses of
15the host track and non-host licensees associated with
16interstate simulcast wagering, other than the interstate
17commission fee, shall be borne by the host track and all
18non-host licensees incurring these costs. The interstate
19commission fee shall not exceed 5% of Illinois handle on the
20interstate simulcast race or races without prior approval of
21the Board. The Board shall promulgate rules under which it may
22permit interstate commission fees in excess of 5%. The
23interstate commission fee and other fees charged by the sending
24racetrack, including, but not limited to, satellite decoder
25fees, shall be uniformly applied to the host track and all
26non-host licensees.

 

 

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1    Notwithstanding any other provision of this Act, for a
2period of 3 years after the effective date of this amendatory
3Act of the 96th General Assembly, an organization licensee may
4maintain a system whereby advance deposit wagering may take
5place or an organization licensee, with the consent of the
6horsemen association representing the largest number of
7owners, trainers, jockeys, or standardbred drivers who race
8horses at that organization licensee's racing meeting, may
9contract with another person to carry out a system of advance
10deposit wagering. Such consent may not be unreasonably
11withheld. All advance deposit wagers placed from within
12Illinois must be placed through a Board-approved advance
13deposit wagering licensee; no other entity may accept an
14advance deposit wager from a person within Illinois. All
15advance deposit wagering is subject to any rules adopted by the
16Board. The Board may adopt rules necessary to regulate advance
17deposit wagering through the use of emergency rulemaking in
18accordance with Section 5-45 of the Illinois Administrative
19Procedure Act. The General Assembly finds that the adoption of
20rules to regulate advance deposit wagering is deemed an
21emergency and necessary for the public interest, safety, and
22welfare. An advance deposit wagering licensee may retain all
23moneys as agreed to by contract with an organization licensee.
24Any moneys retained by the organization licensee from advance
25deposit wagering, not including moneys retained by the advance
26deposit wagering licensee, shall be paid 50% to the

 

 

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1organization licensee's purse account and 50% to the
2organization licensee. If more than one breed races at the same
3race track facility, then the 50% of the moneys to be paid to
4an organization licensee's purse account shall be allocated
5among all organization licensees' purse accounts operating at
6that race track facility proportionately based on the actual
7number of host days that the Board grants to that breed at that
8race track facility in the current calendar year. To the extent
9any fees from advance deposit wagering conducted in Illinois
10for wagers in Illinois or other states have been placed in
11escrow or otherwise withheld from wagers pending a
12determination of the legality of advance deposit wagering, no
13action shall be brought to declare such wagers or the
14disbursement of any fees previously escrowed illegal.
15        (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
16    intertrack wagering licensee other than the host track may
17    supplement the host track simulcast program with
18    additional simulcast races or race programs, provided that
19    between January 1 and the third Friday in February of any
20    year, inclusive, if no live thoroughbred racing is
21    occurring in Illinois during this period, only
22    thoroughbred races may be used for supplemental interstate
23    simulcast purposes. The Board shall withhold approval for a
24    supplemental interstate simulcast only if it finds that the
25    simulcast is clearly adverse to the integrity of racing. A
26    supplemental interstate simulcast may be transmitted from

 

 

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

 

 

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

 

 

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1        track, 50% to the host track and 50% to purses at the
2        host track.
3            (B) For wagers placed on interstate simulcast
4        races, supplemental simulcasts as defined in
5        subparagraphs (1) and (2), and separately pooled races
6        conducted outside of the State of Illinois made at a
7        non-host licensee, 25% to the host track, 25% to the
8        non-host licensee, and 50% to the purses at the host
9        track.
10        (6) Notwithstanding any provision in this Act to the
11    contrary, non-host licensees who derive their licenses
12    from a track located in a county with a population in
13    excess of 230,000 and that borders the Mississippi River
14    may receive supplemental interstate simulcast races at all
15    times subject to Board approval, which shall be withheld
16    only upon a finding that a supplemental interstate
17    simulcast is clearly adverse to the integrity of racing.
18        (7) Notwithstanding any provision of this Act to the
19    contrary, after payment of all applicable State and local
20    taxes and interstate commission fees, non-host licensees
21    who derive their licenses from a track located in a county
22    with a population in excess of 230,000 and that borders the
23    Mississippi River shall retain 50% of the retention from
24    interstate simulcast wagers and shall pay 50% to purses at
25    the track from which the non-host licensee derives its
26    license as follows:

 

 

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1            (A) Between January 1 and the third Friday in
2        February, inclusive, if no live thoroughbred racing is
3        occurring in Illinois during this period, when the
4        interstate simulcast is a standardbred race, the purse
5        share to its standardbred purse account;
6            (B) Between January 1 and the third Friday in
7        February, inclusive, if no live thoroughbred racing is
8        occurring in Illinois during this period, and the
9        interstate simulcast is a thoroughbred race, the purse
10        share to its interstate simulcast purse pool to be
11        distributed under paragraph (10) of this subsection
12        (g);
13            (C) Between January 1 and the third Friday in
14        February, inclusive, if live thoroughbred racing is
15        occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
16        the purse share from wagers made during this time
17        period to its thoroughbred purse account and between
18        6:30 p.m. and 6:30 a.m. the purse share from wagers
19        made during this time period to its standardbred purse
20        accounts;
21            (D) Between the third Saturday in February and
22        December 31, when the interstate simulcast occurs
23        between the hours of 6:30 a.m. and 6:30 p.m., the purse
24        share to its thoroughbred purse account;
25            (E) Between the third Saturday in February and
26        December 31, when the interstate simulcast occurs

 

 

09700SB0744ham001- 168 -LRB097 04465 ASK 56143 a

1        between the hours of 6:30 p.m. and 6:30 a.m., the purse
2        share to its standardbred purse account.
3        (7.1) Notwithstanding any other provision of this Act
4    to the contrary, if no standardbred racing is conducted at
5    a racetrack located in Madison County during any calendar
6    year beginning on or after January 1, 2002, all moneys
7    derived by that racetrack from simulcast wagering and
8    inter-track wagering that (1) are to be used for purses and
9    (2) are generated between the hours of 6:30 p.m. and 6:30
10    a.m. during that calendar year shall be paid as follows:
11            (A) If the licensee that conducts horse racing at
12        that racetrack requests from the Board at least as many
13        racing dates as were conducted in calendar year 2000,
14        80% shall be paid to its thoroughbred purse account;
15        and
16            (B) Twenty percent shall be deposited into the
17        Illinois Colt Stakes Purse Distribution Fund and shall
18        be paid to purses for standardbred races for Illinois
19        conceived and foaled horses conducted at any county
20        fairgrounds. The moneys deposited into the Fund
21        pursuant to this subparagraph (B) shall be deposited
22        within 2 weeks after the day they were generated, shall
23        be in addition to and not in lieu of any other moneys
24        paid to standardbred purses under this Act, and shall
25        not be commingled with other moneys paid into that
26        Fund. The moneys deposited pursuant to this

 

 

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1        subparagraph (B) shall be allocated as provided by the
2        Department of Agriculture, with the advice and
3        assistance of the Illinois Standardbred Breeders Fund
4        Advisory Board.
5        (7.2) Notwithstanding any other provision of this Act
6    to the contrary, if no thoroughbred racing is conducted at
7    a racetrack located in Madison County during any calendar
8    year beginning on or after January 1, 2002, all moneys
9    derived by that racetrack from simulcast wagering and
10    inter-track wagering that (1) are to be used for purses and
11    (2) are generated between the hours of 6:30 a.m. and 6:30
12    p.m. during that calendar year shall be deposited as
13    follows:
14            (A) If the licensee that conducts horse racing at
15        that racetrack requests from the Board at least as many
16        racing dates as were conducted in calendar year 2000,
17        80% shall be deposited into its standardbred purse
18        account; and
19            (B) Twenty percent shall be deposited into the
20        Illinois Colt Stakes Purse Distribution Fund. Moneys
21        deposited into the Illinois Colt Stakes Purse
22        Distribution Fund pursuant to this subparagraph (B)
23        shall be paid to Illinois conceived and foaled
24        thoroughbred breeders' programs and to thoroughbred
25        purses for races conducted at any county fairgrounds
26        for Illinois conceived and foaled horses at the

 

 

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1        discretion of the Department of Agriculture, with the
2        advice and assistance of the Illinois Thoroughbred
3        Breeders Fund Advisory Board. The moneys deposited
4        into the Illinois Colt Stakes Purse Distribution Fund
5        pursuant to this subparagraph (B) shall be deposited
6        within 2 weeks after the day they were generated, shall
7        be in addition to and not in lieu of any other moneys
8        paid to thoroughbred purses under this Act, and shall
9        not be commingled with other moneys deposited into that
10        Fund.
11        (7.3) If no live standardbred racing is conducted at a
12    racetrack located in Madison County in calendar year 2000
13    or 2001, an organization licensee who is licensed to
14    conduct horse racing at that racetrack shall, before
15    January 1, 2002, pay all moneys derived from simulcast
16    wagering and inter-track wagering in calendar years 2000
17    and 2001 and paid into the licensee's standardbred purse
18    account as follows:
19            (A) Eighty percent to that licensee's thoroughbred
20        purse account to be used for thoroughbred purses; and
21            (B) Twenty percent to the Illinois Colt Stakes
22        Purse Distribution Fund.
23        Failure to make the payment to the Illinois Colt Stakes
24    Purse Distribution Fund before January 1, 2002 shall result
25    in the immediate revocation of the licensee's organization
26    license, inter-track wagering license, and inter-track

 

 

09700SB0744ham001- 171 -LRB097 04465 ASK 56143 a

1    wagering location license.
2        Moneys paid into the Illinois Colt Stakes Purse
3    Distribution Fund pursuant to this paragraph (7.3) shall be
4    paid to purses for standardbred races for Illinois
5    conceived and foaled horses conducted at any county
6    fairgrounds. Moneys paid into the Illinois Colt Stakes
7    Purse Distribution Fund pursuant to this paragraph (7.3)
8    shall be used as determined by the Department of
9    Agriculture, with the advice and assistance of the Illinois
10    Standardbred Breeders Fund Advisory Board, shall be in
11    addition to and not in lieu of any other moneys paid to
12    standardbred purses under this Act, and shall not be
13    commingled with any other moneys paid into that Fund.
14        (7.4) If live standardbred racing is conducted at a
15    racetrack located in Madison County at any time in calendar
16    year 2001 before the payment required under paragraph (7.3)
17    has been made, the organization licensee who is licensed to
18    conduct racing at that racetrack shall pay all moneys
19    derived by that racetrack from simulcast wagering and
20    inter-track wagering during calendar years 2000 and 2001
21    that (1) are to be used for purses and (2) are generated
22    between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
23    2001 to the standardbred purse account at that racetrack to
24    be used for standardbred purses.
25        (8) Notwithstanding any provision in this Act to the
26    contrary, an organization licensee from a track located in

 

 

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

 

 

09700SB0744ham001- 173 -LRB097 04465 ASK 56143 a

1    and include all such races as part of their simulcast
2    programs.
3        (13) Notwithstanding any other provision of this Act,
4    in the event that the total Illinois pari-mutuel handle on
5    Illinois horse races at all wagering facilities in any
6    calendar year is less than 75% of the total Illinois
7    pari-mutuel handle on Illinois horse races at all such
8    wagering facilities for calendar year 1994, then each
9    wagering facility that has an annual total Illinois
10    pari-mutuel handle on Illinois horse races that is less
11    than 75% of the total Illinois pari-mutuel handle on
12    Illinois horse races at such wagering facility for calendar
13    year 1994, shall be permitted to receive, from any amount
14    otherwise payable to the purse account at the race track
15    with which the wagering facility is affiliated in the
16    succeeding calendar year, an amount equal to 2% of the
17    differential in total Illinois pari-mutuel handle on
18    Illinois horse races at the wagering facility between that
19    calendar year in question and 1994 provided, however, that
20    a wagering facility shall not be entitled to any such
21    payment until the Board certifies in writing to the
22    wagering facility the amount to which the wagering facility
23    is entitled and a schedule for payment of the amount to the
24    wagering facility, based on: (i) the racing dates awarded
25    to the race track affiliated with the wagering facility
26    during the succeeding year; (ii) the sums available or

 

 

09700SB0744ham001- 174 -LRB097 04465 ASK 56143 a

1    anticipated to be available in the purse account of the
2    race track affiliated with the wagering facility for purses
3    during the succeeding year; and (iii) the need to ensure
4    reasonable purse levels during the payment period. The
5    Board's certification shall be provided no later than
6    January 31 of the succeeding year. In the event a wagering
7    facility entitled to a payment under this paragraph (13) is
8    affiliated with a race track that maintains purse accounts
9    for both standardbred and thoroughbred racing, the amount
10    to be paid to the wagering facility shall be divided
11    between each purse account pro rata, based on the amount of
12    Illinois handle on Illinois standardbred and thoroughbred
13    racing respectively at the wagering facility during the
14    previous calendar year. Annually, the General Assembly
15    shall appropriate sufficient funds from the General
16    Revenue Fund to the Department of Agriculture for payment
17    into the thoroughbred and standardbred horse racing purse
18    accounts at Illinois pari-mutuel tracks. The amount paid to
19    each purse account shall be the amount certified by the
20    Illinois Racing Board in January to be transferred from
21    each account to each eligible racing facility in accordance
22    with the provisions of this Section. Beginning in the
23    calendar year in which an organization licensee that is
24    eligible to receive payment under this paragraph (13)
25    begins to receive funds from electronic gaming, the amount
26    of the payment due to all wagering facilities licensed

 

 

09700SB0744ham001- 175 -LRB097 04465 ASK 56143 a

1    under that organization licensee under this paragraph (13)
2    shall be the amount certified by the Board in January of
3    that year. An organization licensee and its related
4    wagering facilities shall no longer be able to receive
5    payments under this paragraph (13) beginning in the year
6    subsequent to the first year in which the organization
7    licensee begins to receive funds from electronic gaming.
8    (h) The Board may approve and license the conduct of
9inter-track wagering and simulcast wagering by inter-track
10wagering licensees and inter-track wagering location licensees
11subject to the following terms and conditions:
12        (1) Any person licensed to conduct a race meeting (i)
13    at a track where 60 or more days of racing were conducted
14    during the immediately preceding calendar year or where
15    over the 5 immediately preceding calendar years an average
16    of 30 or more days of racing were conducted annually may be
17    issued an inter-track wagering license; (ii) at a track
18    located in a county that is bounded by the Mississippi
19    River, which has a population of less than 150,000
20    according to the 1990 decennial census, and an average of
21    at least 60 days of racing per year between 1985 and 1993
22    may be issued an inter-track wagering license; or (iii) at
23    a track located in Madison County that conducted at least
24    100 days of live racing during the immediately preceding
25    calendar year may be issued an inter-track wagering
26    license, unless a lesser schedule of live racing is the

 

 

09700SB0744ham001- 176 -LRB097 04465 ASK 56143 a

1    result of (A) weather, unsafe track conditions, or other
2    acts of God; (B) an agreement between the organization
3    licensee and the associations representing the largest
4    number of owners, trainers, jockeys, or standardbred
5    drivers who race horses at that organization licensee's
6    racing meeting; or (C) a finding by the Board of
7    extraordinary circumstances and that it was in the best
8    interest of the public and the sport to conduct fewer than
9    100 days of live racing. Any such person having operating
10    control of the racing facility may also receive up to 6
11    inter-track wagering location licenses. In no event shall
12    more than 6 inter-track wagering locations be established
13    for each eligible race track, except that an eligible race
14    track located in a county that has a population of more
15    than 230,000 and that is bounded by the Mississippi River
16    may establish up to 7 inter-track wagering locations. An
17    application for said license shall be filed with the Board
18    prior to such dates as may be fixed by the Board. With an
19    application for an inter-track wagering location license
20    there shall be delivered to the Board a certified check or
21    bank draft payable to the order of the Board for an amount
22    equal to $500. The application shall be on forms prescribed
23    and furnished by the Board. The application shall comply
24    with all other rules, regulations and conditions imposed by
25    the Board in connection therewith.
26        (2) The Board shall examine the applications with

 

 

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1    respect to their conformity with this Act and the rules and
2    regulations imposed by the Board. If found to be in
3    compliance with the Act and rules and regulations of the
4    Board, the Board may then issue a license to conduct
5    inter-track wagering and simulcast wagering to such
6    applicant. All such applications shall be acted upon by the
7    Board at a meeting to be held on such date as may be fixed
8    by the Board.
9        (3) In granting licenses to conduct inter-track
10    wagering and simulcast wagering, the Board shall give due
11    consideration to the best interests of the public, of horse
12    racing, and of maximizing revenue to the State.
13        (4) Prior to the issuance of a license to conduct
14    inter-track wagering and simulcast wagering, the applicant
15    shall file with the Board a bond payable to the State of
16    Illinois in the sum of $50,000, executed by the applicant
17    and a surety company or companies authorized to do business
18    in this State, and conditioned upon (i) the payment by the
19    licensee of all taxes due under Section 27 or 27.1 and any
20    other monies due and payable under this Act, and (ii)
21    distribution by the licensee, upon presentation of the
22    winning ticket or tickets, of all sums payable to the
23    patrons of pari-mutuel pools.
24        (5) Each license to conduct inter-track wagering and
25    simulcast wagering shall specify the person to whom it is
26    issued, the dates on which such wagering is permitted, and

 

 

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1    the track or location where the wagering is to be
2    conducted.
3        (6) All wagering under such license is subject to this
4    Act and to the rules and regulations from time to time
5    prescribed by the Board, and every such license issued by
6    the Board shall contain a recital to that effect.
7        (7) An inter-track wagering licensee or inter-track
8    wagering location licensee may accept wagers at the track
9    or location where it is licensed, or as otherwise provided
10    under this Act.
11        (8) Inter-track wagering or simulcast wagering shall
12    not be conducted at any track less than 4 5 miles from a
13    track at which a racing meeting is in progress.
14        (8.1) Inter-track wagering location licensees who
15    derive their licenses from a particular organization
16    licensee shall conduct inter-track wagering and simulcast
17    wagering only at locations which are either within 90 miles
18    of that race track where the particular organization
19    licensee is licensed to conduct racing, or within 135 miles
20    of that race track where the particular organization
21    licensee is licensed to conduct racing in the case of race
22    tracks in counties of less than 400,000 that were operating
23    on or before June 1, 1986. However, inter-track wagering
24    and simulcast wagering shall not be conducted by those
25    licensees at any location within 5 miles of any race track
26    at which a horse race meeting has been licensed in the

 

 

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

 

 

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

 

 

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1    Section 27.
2        (10.1) Except as provided in subsection (g) of Section
3    27 of this Act, inter-track wagering location licensees
4    shall pay 1% of the pari-mutuel handle at each location to
5    the municipality in which such location is situated and 1%
6    of the pari-mutuel handle at each location to the county in
7    which such location is situated. In the event that an
8    inter-track wagering location licensee is situated in an
9    unincorporated area of a county, such licensee shall pay 2%
10    of the pari-mutuel handle from such location to such
11    county.
12        (10.2) Notwithstanding any other provision of this
13    Act, with respect to intertrack wagering at a race track
14    located in a county that has a population of more than
15    230,000 and that is bounded by the Mississippi River ("the
16    first race track"), or at a facility operated by an
17    inter-track wagering licensee or inter-track wagering
18    location licensee that derives its license from the
19    organization licensee that operates the first race track,
20    on races conducted at the first race track or on races
21    conducted at another Illinois race track and
22    simultaneously televised to the first race track or to a
23    facility operated by an inter-track wagering licensee or
24    inter-track wagering location licensee that derives its
25    license from the organization licensee that operates the
26    first race track, those moneys shall be allocated as

 

 

09700SB0744ham001- 182 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 183 -LRB097 04465 ASK 56143 a

1    230,000 and that borders the Mississippi River shall not
2    divide any remaining retention with that organization
3    licensee.
4        (B) From the sums permitted to be retained pursuant to
5    this Act each inter-track wagering location licensee shall
6    pay (i) the privilege or pari-mutuel tax to the State; (ii)
7    4.75% of the pari-mutuel handle on intertrack wagering at
8    such location on races as purses, except that an intertrack
9    wagering location licensee that derives its license from a
10    track located in a county with a population in excess of
11    230,000 and that borders the Mississippi River shall retain
12    all purse moneys for its own purse account consistent with
13    distribution set forth in this subsection (h), and
14    intertrack wagering location licensees that accept wagers
15    on races conducted by an organization licensee located in a
16    county with a population in excess of 230,000 and that
17    borders the Mississippi River shall distribute all purse
18    moneys to purses at the operating host track; (iii) until
19    January 1, 2000, except as provided in subsection (g) of
20    Section 27 of this Act, 1% of the pari-mutuel handle
21    wagered on inter-track wagering and simulcast wagering at
22    each inter-track wagering location licensee facility to
23    the Horse Racing Tax Allocation Fund, provided that, to the
24    extent the total amount collected and distributed to the
25    Horse Racing Tax Allocation Fund under this subsection (h)
26    during any calendar year exceeds the amount collected and

 

 

09700SB0744ham001- 184 -LRB097 04465 ASK 56143 a

1    distributed to the Horse Racing Tax Allocation Fund during
2    calendar year 1994, that excess amount shall be
3    redistributed (I) to all inter-track wagering location
4    licensees, based on each licensee's pro-rata share of the
5    total handle from inter-track wagering and simulcast
6    wagering for all inter-track wagering location licensees
7    during the calendar year in which this provision is
8    applicable; then (II) the amounts redistributed to each
9    inter-track wagering location licensee as described in
10    subpart (I) shall be further redistributed as provided in
11    subparagraph (B) of paragraph (5) of subsection (g) of this
12    Section 26 provided first, that the shares of those
13    amounts, which are to be redistributed to the host track or
14    to purses at the host track under subparagraph (B) of
15    paragraph (5) of subsection (g) of this Section 26 shall be
16    redistributed based on each host track's pro rata share of
17    the total inter-track wagering and simulcast wagering
18    handle at all host tracks during the calendar year in
19    question, and second, that any amounts redistributed as
20    described in part (I) to an inter-track wagering location
21    licensee that accepts wagers on races conducted by an
22    organization licensee that conducts a race meet in a county
23    with a population in excess of 230,000 and that borders the
24    Mississippi River shall be further redistributed as
25    provided in subparagraphs (D) and (E) of paragraph (7) of
26    subsection (g) of this Section 26, with the portion of that

 

 

09700SB0744ham001- 185 -LRB097 04465 ASK 56143 a

1    further redistribution allocated to purses at that
2    organization licensee to be divided between standardbred
3    purses and thoroughbred purses based on the amounts
4    otherwise allocated to purses at that organization
5    licensee during the calendar year in question; and (iv) 8%
6    of the pari-mutuel handle on inter-track wagering wagered
7    at such location to satisfy all costs and expenses of
8    conducting its wagering. The remainder of the monies
9    retained by the inter-track wagering location licensee
10    shall be allocated 40% to the location licensee and 60% to
11    the organization licensee which provides the Illinois
12    races to the location, except that an intertrack wagering
13    location licensee that derives its license from a track
14    located in a county with a population in excess of 230,000
15    and that borders the Mississippi River shall not divide any
16    remaining retention with the organization licensee that
17    provides the race or races and an intertrack wagering
18    location licensee that accepts wagers on races conducted by
19    an organization licensee that conducts a race meet in a
20    county with a population in excess of 230,000 and that
21    borders the Mississippi River shall not divide any
22    remaining retention with the organization licensee.
23    Notwithstanding the provisions of clauses (ii) and (iv) of
24    this paragraph, in the case of the additional inter-track
25    wagering location licenses authorized under paragraph (1)
26    of this subsection (h) by this amendatory Act of 1991,

 

 

09700SB0744ham001- 186 -LRB097 04465 ASK 56143 a

1    those licensees shall pay the following amounts as purses:
2    during the first 12 months the licensee is in operation,
3    5.25% of the pari-mutuel handle wagered at the location on
4    races; during the second 12 months, 5.25%; during the third
5    12 months, 5.75%; during the fourth 12 months, 6.25%; and
6    during the fifth 12 months and thereafter, 6.75%. The
7    following amounts shall be retained by the licensee to
8    satisfy all costs and expenses of conducting its wagering:
9    during the first 12 months the licensee is in operation,
10    8.25% of the pari-mutuel handle wagered at the location;
11    during the second 12 months, 8.25%; during the third 12
12    months, 7.75%; during the fourth 12 months, 7.25%; and
13    during the fifth 12 months and thereafter, 6.75%. For
14    additional intertrack wagering location licensees
15    authorized under this amendatory Act of 1995, purses for
16    the first 12 months the licensee is in operation shall be
17    5.75% of the pari-mutuel wagered at the location, purses
18    for the second 12 months the licensee is in operation shall
19    be 6.25%, and purses thereafter shall be 6.75%. For
20    additional intertrack location licensees authorized under
21    this amendatory Act of 1995, the licensee shall be allowed
22    to retain to satisfy all costs and expenses: 7.75% of the
23    pari-mutuel handle wagered at the location during its first
24    12 months of operation, 7.25% during its second 12 months
25    of operation, and 6.75% thereafter.
26        (C) There is hereby created the Horse Racing Tax

 

 

09700SB0744ham001- 187 -LRB097 04465 ASK 56143 a

1    Allocation Fund which shall remain in existence until
2    December 31, 1999. Moneys remaining in the Fund after
3    December 31, 1999 shall be paid into the General Revenue
4    Fund. Until January 1, 2000, all monies paid into the Horse
5    Racing Tax Allocation Fund pursuant to this paragraph (11)
6    by inter-track wagering location licensees located in park
7    districts of 500,000 population or less, or in a
8    municipality that is not included within any park district
9    but is included within a conservation district and is the
10    county seat of a county that (i) is contiguous to the state
11    of Indiana and (ii) has a 1990 population of 88,257
12    according to the United States Bureau of the Census, and
13    operating on May 1, 1994 shall be allocated by
14    appropriation as follows:
15            Two-sevenths to the Department of Agriculture.
16        Fifty percent of this two-sevenths shall be used to
17        promote the Illinois horse racing and breeding
18        industry, and shall be distributed by the Department of
19        Agriculture upon the advice of a 9-member committee
20        appointed by the Governor consisting of the following
21        members: the Director of Agriculture, who shall serve
22        as chairman; 2 representatives of organization
23        licensees conducting thoroughbred race meetings in
24        this State, recommended by those licensees; 2
25        representatives of organization licensees conducting
26        standardbred race meetings in this State, recommended

 

 

09700SB0744ham001- 188 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 189 -LRB097 04465 ASK 56143 a

1        that do not have a park district of 500,000 population
2        or less for museum purposes (if an inter-track wagering
3        location licensee is located in such a park district)
4        or to conservation districts for museum purposes (if an
5        inter-track wagering location licensee is located in a
6        municipality that is not included within any park
7        district but is included within a conservation
8        district and is the county seat of a county that (i) is
9        contiguous to the state of Indiana and (ii) has a 1990
10        population of 88,257 according to the United States
11        Bureau of the Census, except that if the conservation
12        district does not maintain a museum, the monies shall
13        be allocated equally between the county and the
14        municipality in which the inter-track wagering
15        location licensee is located for general purposes) or
16        to a municipal recreation board for park purposes (if
17        an inter-track wagering location licensee is located
18        in a municipality that is not included within any park
19        district and park maintenance is the function of the
20        municipal recreation board and the municipality has a
21        1990 population of 9,302 according to the United States
22        Bureau of the Census); provided that the monies are
23        distributed to each park district or conservation
24        district or municipality that does not have a park
25        district in an amount equal to four-sevenths of the
26        amount collected by each inter-track wagering location

 

 

09700SB0744ham001- 190 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 191 -LRB097 04465 ASK 56143 a

1            Two-sevenths to the Department of Agriculture.
2        Fifty percent of this two-sevenths shall be used to
3        promote the Illinois horse racing and breeding
4        industry, and shall be distributed by the Department of
5        Agriculture upon the advice of a 9-member committee
6        appointed by the Governor consisting of the following
7        members: the Director of Agriculture, who shall serve
8        as chairman; 2 representatives of organization
9        licensees conducting thoroughbred race meetings in
10        this State, recommended by those licensees; 2
11        representatives of organization licensees conducting
12        standardbred race meetings in this State, recommended
13        by those licensees; a representative of the Illinois
14        Thoroughbred Breeders and Owners Foundation,
15        recommended by that Foundation; a representative of
16        the Illinois Standardbred Owners and Breeders
17        Association, recommended by that Association; a
18        representative of the Horsemen's Benevolent and
19        Protective Association or any successor organization
20        thereto established in Illinois comprised of the
21        largest number of owners and trainers, recommended by
22        that Association or that successor organization; and a
23        representative of the Illinois Harness Horsemen's
24        Association, recommended by that Association.
25        Committee members shall serve for terms of 2 years,
26        commencing January 1 of each even-numbered year. If a

 

 

09700SB0744ham001- 192 -LRB097 04465 ASK 56143 a

1        representative of any of the above-named entities has
2        not been recommended by January 1 of any even-numbered
3        year, the Governor shall appoint a committee member to
4        fill that position. Committee members shall receive no
5        compensation for their services as members but shall be
6        reimbursed for all actual and necessary expenses and
7        disbursements incurred in the performance of their
8        official duties. The remaining 50% of this
9        two-sevenths shall be distributed to county fairs for
10        premiums and rehabilitation as set forth in the
11        Agricultural Fair Act;
12            Four-sevenths to museums and aquariums located in
13        park districts of over 500,000 population; provided
14        that the monies are distributed in accordance with the
15        previous year's distribution of the maintenance tax
16        for such museums and aquariums as provided in Section 2
17        of the Park District Aquarium and Museum Act; and
18            One-seventh to the Agricultural Premium Fund to be
19        used for distribution to agricultural home economics
20        extension councils in accordance with "An Act in
21        relation to additional support and finances for the
22        Agricultural and Home Economic Extension Councils in
23        the several counties of this State and making an
24        appropriation therefor", approved July 24, 1967. This
25        subparagraph (C) shall be inoperative and of no force
26        and effect on and after January 1, 2000.

 

 

09700SB0744ham001- 193 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 194 -LRB097 04465 ASK 56143 a

1            licensee, except an intertrack wagering location
2            licensee that derives its license from an
3            organization licensee located in a county with a
4            population in excess of 230,000 and bounded by the
5            Mississippi River, the entire purse allocation for
6            Illinois races shall be to purses at the track
7            where the race meeting being wagered on is being
8            held.
9        (12) The Board shall have all powers necessary and
10    proper to fully supervise and control the conduct of
11    inter-track wagering and simulcast wagering by inter-track
12    wagering licensees and inter-track wagering location
13    licensees, including, but not limited to the following:
14            (A) The Board is vested with power to promulgate
15        reasonable rules and regulations for the purpose of
16        administering the conduct of this wagering and to
17        prescribe reasonable rules, regulations and conditions
18        under which such wagering shall be held and conducted.
19        Such rules and regulations are to provide for the
20        prevention of practices detrimental to the public
21        interest and for the best interests of said wagering
22        and to impose penalties for violations thereof.
23            (B) The Board, and any person or persons to whom it
24        delegates this power, is vested with the power to enter
25        the facilities of any licensee to determine whether
26        there has been compliance with the provisions of this

 

 

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

 

 

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1            (G) The Board is vested with the power to impose
2        civil penalties of up to $5,000 against individuals and
3        up to $10,000 against licensees for each violation of
4        any provision of this Act relating to the conduct of
5        this wagering, any rules adopted by the Board, any
6        order of the Board or any other action which in the
7        Board's discretion, is a detriment or impediment to
8        such wagering.
9        (13) The Department of Agriculture may enter into
10    agreements with licensees authorizing such licensees to
11    conduct inter-track wagering on races to be held at the
12    licensed race meetings conducted by the Department of
13    Agriculture. Such agreement shall specify the races of the
14    Department of Agriculture's licensed race meeting upon
15    which the licensees will conduct wagering. In the event
16    that a licensee conducts inter-track pari-mutuel wagering
17    on races from the Illinois State Fair or DuQuoin State Fair
18    which are in addition to the licensee's previously approved
19    racing program, those races shall be considered a separate
20    racing day for the purpose of determining the daily handle
21    and computing the privilege or pari-mutuel tax on that
22    daily handle as provided in Sections 27 and 27.1. Such
23    agreements shall be approved by the Board before such
24    wagering may be conducted. In determining whether to grant
25    approval, the Board shall give due consideration to the
26    best interests of the public and of horse racing. The

 

 

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1    provisions of paragraphs (1), (8), (8.1), and (8.2) of
2    subsection (h) of this Section which are not specified in
3    this paragraph (13) shall not apply to licensed race
4    meetings conducted by the Department of Agriculture at the
5    Illinois State Fair in Sangamon County or the DuQuoin State
6    Fair in Perry County, or to any wagering conducted on those
7    race meetings.
8    (i) Notwithstanding the other provisions of this Act, the
9conduct of wagering at wagering facilities is authorized on all
10days, except as limited by subsection (b) of Section 19 of this
11Act.
12(Source: P.A. 96-762, eff. 8-25-09.)
 
13    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
14    Sec. 27. (a) In addition to the organization license fee
15provided by this Act, until January 1, 2000, a graduated
16privilege tax is hereby imposed for conducting the pari-mutuel
17system of wagering permitted under this Act. Until January 1,
182000, except as provided in subsection (g) of Section 27 of
19this Act, all of the breakage of each racing day held by any
20licensee in the State shall be paid to the State. Until January
211, 2000, such daily graduated privilege tax shall be paid by
22the licensee from the amount permitted to be retained under
23this Act. Until January 1, 2000, each day's graduated privilege
24tax, breakage, and Horse Racing Tax Allocation funds shall be
25remitted to the Department of Revenue within 48 hours after the

 

 

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1close of the racing day upon which it is assessed or within
2such other time as the Board prescribes. The privilege tax
3hereby imposed, until January 1, 2000, shall be a flat tax at
4the rate of 2% of the daily pari-mutuel handle except as
5provided in Section 27.1.
6    In addition, every organization licensee, except as
7provided in Section 27.1 of this Act, which conducts multiple
8wagering shall pay, until January 1, 2000, as a privilege tax
9on multiple wagers an amount equal to 1.25% of all moneys
10wagered each day on such multiple wagers, plus an additional
11amount equal to 3.5% of the amount wagered each day on any
12other multiple wager which involves a single betting interest
13on 3 or more horses. The licensee shall remit the amount of
14such taxes to the Department of Revenue within 48 hours after
15the close of the racing day on which it is assessed or within
16such other time as the Board prescribes.
17    This subsection (a) shall be inoperative and of no force
18and effect on and after January 1, 2000.
19    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
20at the rate of 1.5% of the daily pari-mutuel handle is imposed
21at all pari-mutuel wagering facilities and on advance deposit
22wagering from a location other than a wagering facility, except
23as otherwise provided for in this subsection (a-5). In addition
24to the pari-mutuel tax imposed on advance deposit wagering
25pursuant to this subsection (a-5), an additional pari-mutuel
26tax at the rate of 0.25% shall be imposed on advance deposit

 

 

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1wagering, the amount of which shall not exceed $250,000 in each
2calendar year. The additional 0.25% pari-mutuel tax imposed on
3advance deposit wagering by this amendatory Act of the 96th
4General Assembly shall be deposited into the Quarter Horse
5Purse Fund, which shall be created as a non-appropriated trust
6fund administered by the Board for grants to thoroughbred
7organization licensees for payment of purses for quarter horse
8races conducted by the organization licensee. Thoroughbred
9organization licensees may petition the Board to conduct
10quarter horse racing and receive purse grants from the Quarter
11Horse Purse Fund. The Board shall have complete discretion in
12distributing the Quarter Horse Purse Fund to the petitioning
13organization licensees. Beginning on the effective date of this
14amendatory Act of the 96th General Assembly and until moneys
15deposited pursuant to Section 54 are distributed and received,
16a pari-mutuel tax at the rate of 0.75% of the daily pari-mutuel
17handle is imposed at a pari-mutuel facility whose license is
18derived from a track located in a county that borders the
19Mississippi River and conducted live racing in the previous
20year. After moneys deposited pursuant to Section 54 are
21distributed and received, a pari-mutuel tax at the rate of 1.5%
22of the daily pari-mutuel handle is imposed at a pari-mutuel
23facility whose license is derived from a track located in a
24county that borders the Mississippi River and conducted live
25racing in the previous year. The pari-mutuel tax imposed by
26this subsection (a-5) shall be remitted to the Department of

 

 

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1Revenue within 48 hours after the close of the racing day upon
2which it is assessed or within such other time as the Board
3prescribes.
4    (a-10) Beginning on the date when an organization licensee
5begins conducting electronic gaming pursuant to an electronic
6gaming license, the following pari-mutuel tax is imposed upon
7an organization licensee on Illinois races at the licensee's
8race track:
9        1.5% of the pari-mutuel handle at or below the average
10    daily pari-mutuel handle for 2011.
11        2% of the pari-mutuel handle above the average daily
12    pari-mutuel handle for 2011 up to 125% of the average daily
13    pari-mutuel handle for 2011.
14        2.5% of the pari-mutuel handle 125% or more above the
15    average daily pari-mutuel handle for 2011 up to 150% of the
16    average daily pari-mutuel handle for 2011.
17        3% of the pari-mutuel handle 150% or more above the
18    average daily pari-mutuel handle for 2011 up to 175% of the
19    average daily pari-mutuel handle for 2011.
20        3.5% of the pari-mutuel handle 175% or more above the
21    average daily pari-mutuel handle for 2011.
22    The pari-mutuel tax imposed by this subsection (a-10) shall
23be remitted to the Board within 48 hours after the close of the
24racing day upon which it is assessed or within such other time
25as the Board prescribes.
26    (b) On or before December 31, 1999, in the event that any

 

 

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1organization licensee conducts 2 separate programs of races on
2any day, each such program shall be considered a separate
3racing day for purposes of determining the daily handle and
4computing the privilege tax on such daily handle as provided in
5subsection (a) of this Section.
6    (c) Licensees shall at all times keep accurate books and
7records of all monies wagered on each day of a race meeting and
8of the taxes paid to the Department of Revenue under the
9provisions of this Section. The Board or its duly authorized
10representative or representatives shall at all reasonable
11times have access to such records for the purpose of examining
12and checking the same and ascertaining whether the proper
13amount of taxes is being paid as provided. The Board shall
14require verified reports and a statement of the total of all
15monies wagered daily at each wagering facility upon which the
16taxes are assessed and may prescribe forms upon which such
17reports and statement shall be made.
18    (d) Any licensee failing or refusing to pay the amount of
19any tax due under this Section shall be guilty of a business
20offense and upon conviction shall be fined not more than $5,000
21in addition to the amount found due as tax under this Section.
22Each day's violation shall constitute a separate offense. All
23fines paid into Court by a licensee hereunder shall be
24transmitted and paid over by the Clerk of the Court to the
25Board.
26    (e) No other license fee, privilege tax, excise tax, or

 

 

09700SB0744ham001- 202 -LRB097 04465 ASK 56143 a

1racing fee, except as provided in this Act, shall be assessed
2or collected from any such licensee by the State.
3    (f) No other license fee, privilege tax, excise tax or
4racing fee shall be assessed or collected from any such
5licensee by units of local government except as provided in
6paragraph 10.1 of subsection (h) and subsection (f) of Section
726 of this Act. However, any municipality that has a Board
8licensed horse race meeting at a race track wholly within its
9corporate boundaries or a township that has a Board licensed
10horse race meeting at a race track wholly within the
11unincorporated area of the township may charge a local
12amusement tax not to exceed 10 per admission to such horse
13race meeting by the enactment of an ordinance. However, any
14municipality or county that has a Board licensed inter-track
15wagering location facility wholly within its corporate
16boundaries may each impose an admission fee not to exceed $1.00
17per admission to such inter-track wagering location facility,
18so that a total of not more than $2.00 per admission may be
19imposed. Except as provided in subparagraph (g) of Section 27
20of this Act, the inter-track wagering location licensee shall
21collect any and all such fees and within 48 hours remit the
22fees to the Board, which shall, pursuant to rule, cause the
23fees to be distributed to the county or municipality.
24    (g) Notwithstanding any provision in this Act to the
25contrary, if in any calendar year the total taxes and fees from
26wagering on live racing and from inter-track wagering required

 

 

09700SB0744ham001- 203 -LRB097 04465 ASK 56143 a

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

 

 

09700SB0744ham001- 204 -LRB097 04465 ASK 56143 a

1    allocated for standardbred or thoroughbred purses,
2    provided that the first $1,500,000 of the amount allocated
3    to standardbred purses under item (i) shall be allocated to
4    the Department of Agriculture to be expended with the
5    assistance and advice of the Illinois Standardbred
6    Breeders Funds Advisory Board for the purposes listed in
7    subsection (g) of Section 31 of this Act, before the amount
8    allocated to standardbred purses under item (i) is
9    allocated to standardbred organization licensees in the
10    succeeding allocation year.
11    To the extent the excess amount of taxes and fees to be
12collected and distributed to State and local governmental
13authorities exceeds $11 million, that excess amount shall be
14collected and distributed to State and local authorities as
15provided for under this Act.
16(Source: P.A. 96-762, eff. 8-25-09; 96-1287, eff. 7-26-10.)
 
17    (230 ILCS 5/28)  (from Ch. 8, par. 37-28)
18    Sec. 28. Except as provided in subsection (g) of Section 27
19of this Act, moneys collected shall be distributed according to
20the provisions of this Section 28.
21    (a) Thirty per cent of the total of all monies received by
22the State as privilege taxes shall be paid into the
23Metropolitan Exposition Auditorium and Office Building Fund in
24the State Treasury.
25    (b) In addition, 4.5% of the total of all monies received

 

 

09700SB0744ham001- 205 -LRB097 04465 ASK 56143 a

1by the State as privilege taxes shall be paid into the State
2treasury into a special Fund to be known as the Metropolitan
3Exposition, Auditorium, and Office Building Fund.
4    (c) Fifty per cent of the total of all monies received by
5the State as privilege taxes under the provisions of this Act
6shall be paid into the Agricultural Premium Fund.
7    (d) Seven per cent of the total of all monies received by
8the State as privilege taxes shall be paid into the Fair and
9Exposition Fund in the State treasury; provided, however, that
10when all bonds issued prior to July 1, 1984 by the Metropolitan
11Fair and Exposition Authority shall have been paid or payment
12shall have been provided for upon a refunding of those bonds,
13thereafter 1/12 of $1,665,662 of such monies shall be paid each
14month into the Build Illinois Fund, and the remainder into the
15Fair and Exposition Fund. All excess monies shall be allocated
16to the Department of Agriculture for distribution to county
17fairs for premiums and rehabilitation as set forth in the
18Agricultural Fair Act.
19    (e) The monies provided for in Section 30 shall be paid
20into the Illinois Thoroughbred Breeders Fund.
21    (f) The monies provided for in Section 31 shall be paid
22into the Illinois Standardbred Breeders Fund.
23    (g) Until January 1, 2000, that part representing 1/2 of
24the total breakage in Thoroughbred, Harness, Appaloosa,
25Arabian, and Quarter Horse racing in the State shall be paid
26into the Illinois Race Track Improvement Fund as established in

 

 

09700SB0744ham001- 206 -LRB097 04465 ASK 56143 a

1Section 32.
2    (h) All other monies received by the Board under this Act
3shall be paid into the Horse Racing Fund General Revenue Fund
4of the State.
5    (i) The salaries of the Board members, secretary, stewards,
6directors of mutuels, veterinarians, representatives,
7accountants, clerks, stenographers, inspectors and other
8employees of the Board, and all expenses of the Board incident
9to the administration of this Act, including, but not limited
10to, all expenses and salaries incident to the taking of saliva
11and urine samples in accordance with the rules and regulations
12of the Board shall be paid out of the Agricultural Premium
13Fund.
14    (j) The Agricultural Premium Fund shall also be used:
15        (1) for the expenses of operating the Illinois State
16    Fair and the DuQuoin State Fair, including the payment of
17    prize money or premiums;
18        (2) for the distribution to county fairs, vocational
19    agriculture section fairs, agricultural societies, and
20    agricultural extension clubs in accordance with the
21    Agricultural Fair Act, as amended;
22        (3) for payment of prize monies and premiums awarded
23    and for expenses incurred in connection with the
24    International Livestock Exposition and the Mid-Continent
25    Livestock Exposition held in Illinois, which premiums, and
26    awards must be approved, and paid by the Illinois

 

 

09700SB0744ham001- 207 -LRB097 04465 ASK 56143 a

1    Department of Agriculture;
2        (4) for personal service of county agricultural
3    advisors and county home advisors;
4        (5) for distribution to agricultural home economic
5    extension councils in accordance with "An Act in relation
6    to additional support and finance for the Agricultural and
7    Home Economic Extension Councils in the several counties in
8    this State and making an appropriation therefor", approved
9    July 24, 1967, as amended;
10        (6) for research on equine disease, including a
11    development center therefor;
12        (7) for training scholarships for study on equine
13    diseases to students at the University of Illinois College
14    of Veterinary Medicine;
15        (8) for the rehabilitation, repair and maintenance of
16    the Illinois and DuQuoin State Fair Grounds and the
17    structures and facilities thereon and the construction of
18    permanent improvements on such Fair Grounds, including
19    such structures, facilities and property located on such
20    State Fair Grounds which are under the custody and control
21    of the Department of Agriculture;
22        (9) for the expenses of the Department of Agriculture
23    under Section 5-530 of the Departments of State Government
24    Law (20 ILCS 5/5-530);
25        (10) for the expenses of the Department of Commerce and
26    Economic Opportunity under Sections 605-620, 605-625, and

 

 

09700SB0744ham001- 208 -LRB097 04465 ASK 56143 a

1    605-630 of the Department of Commerce and Economic
2    Opportunity Law (20 ILCS 605/605-620, 605/605-625, and
3    605/605-630);
4        (11) for remodeling, expanding, and reconstructing
5    facilities destroyed by fire of any Fair and Exposition
6    Authority in counties with a population of 1,000,000 or
7    more inhabitants;
8        (12) for the purpose of assisting in the care and
9    general rehabilitation of disabled veterans of any war and
10    their surviving spouses and orphans;
11        (13) for expenses of the Department of State Police for
12    duties performed under this Act;
13        (14) for the Department of Agriculture for soil surveys
14    and soil and water conservation purposes;
15        (15) for the Department of Agriculture for grants to
16    the City of Chicago for conducting the Chicagofest;
17        (16) for the State Comptroller for grants and operating
18    expenses authorized by the Illinois Global Partnership
19    Act.
20    (k) To the extent that monies paid by the Board to the
21Agricultural Premium Fund are in the opinion of the Governor in
22excess of the amount necessary for the purposes herein stated,
23the Governor shall notify the Comptroller and the State
24Treasurer of such fact, who, upon receipt of such notification,
25shall transfer such excess monies from the Agricultural Premium
26Fund to the General Revenue Fund.

 

 

09700SB0744ham001- 209 -LRB097 04465 ASK 56143 a

1(Source: P.A. 94-91, Sections 55-135 and 90-10, eff. 7-1-05.)
 
2    (230 ILCS 5/28.1)
3    Sec. 28.1. Payments.
4    (a) Beginning on January 1, 2000, moneys collected by the
5Department of Revenue and the Racing Board pursuant to Section
626 or Section 27 of this Act shall be deposited into the Horse
7Racing Fund, which is hereby created as a special fund in the
8State Treasury.
9    (b) Appropriations, as approved by the General Assembly,
10may be made from the Horse Racing Fund to the Board to pay the
11salaries of the Board members, secretary, stewards, directors
12of mutuels, veterinarians, representatives, accountants,
13clerks, stenographers, inspectors and other employees of the
14Board, and all expenses of the Board incident to the
15administration of this Act, including, but not limited to, all
16expenses and salaries incident to the taking of saliva and
17urine samples in accordance with the rules and regulations of
18the Board.
19    (c) Beginning on January 1, 2000, the Board shall transfer
20the remainder of the funds generated pursuant to Sections 26
21and 27 from the Horse Racing Fund into the General Revenue
22Fund.
23    In the event that in any fiscal year, the amount of total
24funds in the Horse Racing Fund is insufficient to meet the
25annual operating expenses of the Board, as appropriated by the

 

 

09700SB0744ham001- 210 -LRB097 04465 ASK 56143 a

1General Assembly for that fiscal year, the Board shall invoice
2the organization licensees for the amount of the deficit. The
3amount of the invoice shall be allocated in a proportionate
4amount of pari-mutuel wagering handled by the organization
5licensee in the year preceding assessment and divided by the
6total pari-mutuel wagering handled by all Illinois
7organization licensees. The payments shall be made 50% from the
8organization licensee's account and 50% from the organization
9licensee's purse account.
10    (d) Beginning January 1, 2000, payments to all programs in
11existence on the effective date of this amendatory Act of 1999
12that are identified in Sections 26(c), 26(f), 26(h)(11)(C), and
1328, subsections (a), (b), (c), (d), (e), (f), (g), and (h) of
14Section 30, and subsections (a), (b), (c), (d), (e), (f), (g),
15and (h) of Section 31 shall be made from the General Revenue
16Fund at the funding levels determined by amounts paid under
17this Act in calendar year 1998. Beginning on the effective date
18of this amendatory Act of the 93rd General Assembly, payments
19to the Peoria Park District shall be made from the General
20Revenue Fund at the funding level determined by amounts paid to
21that park district for museum purposes under this Act in
22calendar year 1994.
23    If an inter-track wagering location licensee's facility
24changes its location, then the payments associated with that
25facility under this subsection (d) for museum purposes shall be
26paid to the park district in the area where the facility

 

 

09700SB0744ham001- 211 -LRB097 04465 ASK 56143 a

1relocates, and the payments shall be used for museum purposes.
2If the facility does not relocate to a park district, then the
3payments shall be paid to the taxing district that is
4responsible for park or museum expenditures.
5    (e) Beginning July 1, 2006, the payment authorized under
6subsection (d) to museums and aquariums located in park
7districts of over 500,000 population shall be paid to museums,
8aquariums, and zoos in amounts determined by Museums in the
9Park, an association of museums, aquariums, and zoos located on
10Chicago Park District property.
11    (f) Beginning July 1, 2007, the Children's Discovery Museum
12in Normal, Illinois shall receive payments from the General
13Revenue Fund at the funding level determined by the amounts
14paid to the Miller Park Zoo in Bloomington, Illinois under this
15Section in calendar year 2006.
16(Source: P.A. 95-222, eff. 8-16-07; 96-562, eff. 8-18-09.)
 
17    (230 ILCS 5/29.2 new)
18    Sec. 29.2. Labor peace agreements. A person, firm, or
19corporation having operating control of a race track that
20employed 10 or more persons during the calendar year before it
21files its application for an electronic gaming license to (i)
22provide or prepare food or beverages or (ii) perform custodial
23or maintenance work, must provide the following information to
24the Illinois Racing Board either before it files, or along
25with, its application for an electronic gaming license: written

 

 

09700SB0744ham001- 212 -LRB097 04465 ASK 56143 a

1proof that the person, firm, or corporation has entered into a
2labor peace agreement with each labor organization that is
3actively engaged in representing or attempting to represent
4food and beverage, hospitality, custodial, and maintenance
5workers in this State. A "labor peace agreement" is an
6agreement in which the labor organization waives the rights of
7itself and its members to strike, picket, or otherwise boycott
8the operation for at least 3 years. The provisions of this
9Section apply to all race tracks that employed 10 or more
10persons during the calendar year before it files its
11application for an electronic gaming license to (i) provide or
12prepare food or beverages or (ii) perform custodial or
13maintenance work.
 
14    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
15    Sec. 30. (a) The General Assembly declares that it is the
16policy of this State to encourage the breeding of thoroughbred
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 thoroughbred horses to participate in
20thoroughbred racing meetings in this State, and to establish
21and preserve 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 Act.
25    (b) Each organization licensee conducting a thoroughbred

 

 

09700SB0744ham001- 213 -LRB097 04465 ASK 56143 a

1racing meeting pursuant to this Act shall provide at least two
2races each day limited to Illinois conceived and foaled horses
3or Illinois foaled horses or both. A minimum of 6 races shall
4be conducted each week limited to Illinois conceived and foaled
5or Illinois foaled horses or both. No horses shall be permitted
6to start in such races unless duly registered under the rules
7of the Department of Agriculture.
8    (c) Conditions of races under subsection (b) shall be
9commensurate with past performance, quality, and class of
10Illinois conceived and foaled and Illinois foaled horses
11available. If, however, sufficient competition cannot be had
12among horses of that class on any day, the races may, with
13consent of the Board, be eliminated for that day and substitute
14races provided.
15    (d) There is hereby created a special fund of the State
16Treasury to be known as the Illinois Thoroughbred Breeders
17Fund.
18    Beginning on the effective date of this amendatory Act of
19the 97th General Assembly, the Illinois Thoroughbred Breeders
20Fund shall become a non-appropriated trust fund held separate
21and apart from State moneys. Expenditures from this fund shall
22no longer be subject to appropriation.
23    Except as provided in subsection (g) of Section 27 of this
24Act, 8.5% of all the monies received by the State as privilege
25taxes on Thoroughbred racing meetings shall be paid into the
26Illinois Thoroughbred Breeders Fund.

 

 

09700SB0744ham001- 214 -LRB097 04465 ASK 56143 a

1    Notwithstanding any provision of law to the contrary,
2amounts deposited into the Illinois Thoroughbred Breeders Fund
3from revenues generated by electronic gaming after the
4effective date of this amendatory Act of the 97th General
5Assembly shall be in addition to tax and fee amounts paid under
6this Section for calendar year 2011 and thereafter.
7    (e) The Illinois Thoroughbred Breeders Fund shall be
8administered by the Department of Agriculture with the advice
9and assistance of the Advisory Board created in subsection (f)
10of this Section.
11    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
12shall consist of the Director of the Department of Agriculture,
13who shall serve as Chairman; a member of the Illinois Racing
14Board, designated by it; 2 representatives of the organization
15<