Sen. Terry Link

Filed: 10/26/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 747

2    AMENDMENT NO. ______. Amend Senate Bill 747 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 and one permanent land-based or water-based facility
15at each of which lawful gambling is authorized and licensed as

 

 

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

 

 

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1contract with a casino operator licensee to manage and operate
2the casino and in no event shall the Authority or City manage
3or operate the casino. The Authority may, pursuant to the
4bidding procedures of Section 1-115, contract with other third
5parties 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. The Authority and casino
11operator licensee are subject to the Illinois Gambling Act and
12all of the rules of the Illinois Gaming Board.
 
13    Section 1-15. Board.
14    (a) The governing and administrative powers of the
15Authority shall be vested in a body known as the Chicago Casino
16Development Board. The Board shall consist of 5 members
17appointed by the Mayor. All appointees shall be subject to
18background investigation and approval by the Gaming Board. One
19of these members shall be designated by the Mayor to serve as
20chairperson. All of the members appointed by the Mayor shall be
21residents of the City.
22    (b) Board members shall receive $300 for each day the
23Authority meets and shall be entitled to reimbursement of
24reasonable expenses incurred in the performance of their
25official duties. A Board member who serves in the office of

 

 

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

 

 

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

 

 

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

 

 

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1office at the pleasure of the Board. The Board shall fix the
2duties of such officer.
 
3    Section 1-31. General rights and powers of the Authority.
4In addition to the duties and powers set forth in this Act, the
5Authority shall have the following rights and powers:
6        (1) Adopt and alter an official seal.
7        (2) Establish and change its fiscal year.
8        (3) Sue and be sued, plead and be impleaded, all in its
9    own name, and agree to binding arbitration of any dispute
10    to which it is a party.
11        (4) Adopt, amend, and repeal bylaws, rules, and
12    regulations consistent with the furtherance of the powers
13    and duties provided for.
14        (5) Maintain its principal office within the City and
15    such other offices as the Board may designate.
16        (6) Select locations in the City for a temporary and a
17    permanent casino, subject to final approval by the Gaming
18    Board, but in no event shall any location be at or in an
19    airport.
20        (7) Conduct background investigations of potential
21    casino operator licensees, including its principals or
22    shareholders, and Authority staff.
23        (8) Subject to the bidding procedures of Section 1-115
24    (except for regular employees) employ, either as regular
25    employees or independent contractors, consultants,

 

 

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1    engineers, architects, accountants, attorneys, financial
2    experts, construction experts and personnel,
3    superintendents, managers and other professional
4    personnel, and such other personnel as may be necessary in
5    the judgment of the Board, and fix their compensation.
6        (9) Pursuant to Section 1-115, own, acquire,
7    construct, equip, lease, operate, and maintain grounds,
8    buildings, and facilities to carry out its corporate
9    purposes and duties.
10        (10) Enter into, revoke, and modify contracts subject
11    to prior approval and procedures of the Gaming Board.
12        (11) Enter into a casino management contract subject to
13    the prior approval of the Gaming Board.
14        (12) Develop, or cause to be developed by a third party
15    pursuant to Section 1-115, a master plan for the design,
16    planning, and development of a casino, subject to the
17    approval of the Gaming Board.
18        (13) Negotiate and enter into intergovernmental
19    agreements with the State and its agencies, the City, and
20    other units of local government, in furtherance of the
21    powers and duties of the Board.
22        (14) Receive and disburse funds for its own corporate
23    purposes or as otherwise specified in this Act.
24        (15) Borrow money from any source, public or private,
25    for any corporate purpose, including, without limitation,
26    working capital for its operations, reserve funds, or

 

 

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1    payment of interest, and to mortgage, pledge, or otherwise
2    encumber the property or funds of the Authority and to
3    contract with or engage the services of any person in
4    connection with any financing, including financial
5    institutions, issuers of letters of credit, or insurers and
6    enter into reimbursement agreements with this person or
7    entity which may be secured as if money were borrowed from
8    the person or entity.
9        (16) Issue bonds as provided for under this Act.
10        (17) Receive and accept from any source, private or
11    public, contributions, gifts, or grants of money or
12    property to the Authority.
13        (18) Provide for the insurance of any property,
14    operations, officers, members, agents, or employees of the
15    Authority against any risk or hazard, to self-insure or
16    participate in joint self-insurance pools or entities to
17    insure against such risk or hazard, and to provide for the
18    indemnification of its officers, members, employees,
19    contractors, or agents against any and all risks.
20        (19) Exercise all the corporate powers granted
21    Illinois corporations under the Business Corporation Act
22    of 1983, except to the extent that powers are inconsistent
23    with those of a body politic and corporate of the State.
24        (20) Do all things necessary or convenient to carry out
25    the powers granted by this Act.
 

 

 

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1    Section 1-32. Ethical conduct.
2    (a) Board members and employees of the Authority must carry
3out their duties and responsibilities in such a manner as to
4promote and preserve public trust and confidence in the
5integrity and conduct of gaming.
6    (b) Except as may be required in the conduct of official
7duties, Board members and employees of the Authority shall not
8engage in gambling on any riverboat, in any casino, or in an
9electronic gaming facility licensed by the Illinois Gaming
10Board or engage in legalized gambling in any establishment
11identified by Board action that, in the judgment of the Board,
12could represent a potential for a conflict of interest.
13    (c) A Board member or employee of the Authority shall not
14use or attempt to use his or her official position to secure or
15attempt to secure any privilege, advantage, favor, or influence
16for himself or herself or others.
17    (d) Board members and employees of the Authority shall not
18hold or pursue employment, office, position, business, or
19occupation that may conflict with his or her official duties.
20Employees may engage in other gainful employment so long as
21that employment does not interfere or conflict with their
22duties. Such employment must be disclosed to the executive
23director and approved by the Board.
24    (e) Board members and employees of the Authority may not
25engage in employment, communications, or any activity that may
26be deemed a conflict of interest. This prohibition shall extend

 

 

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1to any act 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.
4    (f) Board members and employees of the Authority and
5elected officials and employees of the City of Chicago may not
6have a financial interest, directly or indirectly, in his or
7her own name or in the name of any other person, partnership,
8association, trust, corporation, or other entity in any
9contract or subcontract for the performance of any work for the
10Authority. This prohibition shall extend to the holding or
11acquisition of an interest in any entity identified by Board
12action or Gaming Board action that, in the judgment of either
13entity, could represent the potential for or the appearance of
14a financial interest. The holding or acquisition of an interest
15in such entities through an indirect means, such as through a
16mutual fund, shall not be prohibited, except that the Gaming
17Board may identify specific investments or funds that, in its
18judgment, are so influenced by gaming holdings as to represent
19the potential for or the appearance of a conflict of interest.
20    (g) Board members and employees of the Authority and
21elected officials and employees of the City of Chicago may not
22accept any gift, gratuity, service, compensation, travel,
23lodging, or thing of value, with the exception of unsolicited
24items of an incidental nature, from any person, corporation, or
25entity doing business with the Authority.
26    (h) No Board member or employee of the Authority may,

 

 

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1during employment or within a period of 2 years immediately
2after termination of employment, knowingly accept employment
3or receive compensation or fees for services from a person or
4entity, or its parent or affiliate, that has engaged in
5business with the Authority that resulted in contracts with an
6aggregate value of at least $25,000 or if that Board member or
7employee has made a decision that directly applied to the
8person or entity, or its parent or affiliate.
9    (i) A spouse, child, or parent of a Board member or
10employee of the Authority or an elected official or employee of
11the City of Chicago may not have a financial interest, directly
12or indirectly, in his or her own name or in the name of any
13other person, partnership, association, trust, corporation, or
14other entity in any contract or subcontract for the performance
15of any work for the Authority. This prohibition shall extend to
16the holding or acquisition of an interest in any entity
17identified by Board action or Gaming Board action that, in the
18judgment of either entity, could represent the potential for or
19the appearance of a conflict of interest. The holding or
20acquisition of an interest in such entities through an indirect
21means, such as through a mutual fund, shall not be prohibited,
22expect that the Gaming Board may identify specific investments
23or funds that, in its judgment, are so influenced by gaming
24holdings as to represent the potential for or the appearance of
25a conflict of interest.
26    (j) A spouse, child, or parent of a Board member or

 

 

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

 

 

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1gaming or the Authority shall be disclosed to the Board and the
2Gaming Board. Such disclosure shall be in writing by the
3official within 30 days after the communication and shall be
4filed with the Board. Disclosure must consist of the date of
5the communication, the identity and job title of the person
6with whom the communication was made, a brief summary of the
7communication, the action requested or recommended, all
8responses made, the identity and job title of the person making
9the response, and any other pertinent information.
10    Public disclosure of the written summary provided to the
11Board and the Gaming Board shall be subject to the exemptions
12provided under Section 7 of the Freedom of Information Act.
13    (n) Any Board member or employee of the Authority who
14violates any provision of this Section is guilty of a Class 4
15felony.
 
16    Section 1-45. Casino management contracts.
17    (a) The Gaming Board shall develop and administer a
18competitive sealed bidding process in accordance with Section
1920-15 of the Illinois Procurement Code and all applicable rules
20for the selection of a potential casino operator licensee to
21develop or operate a casino within the City. The Gaming Board
22shall issue one or more requests for proposals. The Gaming
23Board may establish minimum financial and investment
24requirements to determine the eligibility of persons to respond
25to the Gaming Board's requests for proposal, and may establish

 

 

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1and consider such other criteria as it deems appropriate. The
2Gaming Board may impose a reasonable fee upon persons who
3respond to requests for proposal, in order to reimburse the
4Board for its costs in preparing and issuing the requests and
5reviewing the proposals.
6    (b) Within 5 days after the due date for submitting bids
7and proposals has passed, the Gaming Board shall make all bids
8and proposals public, provided, however, the Gaming Board shall
9not be required to disclose any information which would be
10exempt from disclosure under Section 7 of the Freedom of
11Information Act. Thereafter, the Gaming Board shall evaluate
12the responses to its requests for proposal and the ability of
13all persons or entities responding to its requests for proposal
14to meet the requirements of this Act and to undertake and
15perform the obligations set forth in its requests for proposal.
16    (c) After reviewing proposals, the Gaming Board shall allow
17the Board to enter into a casino management contract
18authorizing the operation of a casino. Validity of the casino
19management contract is contingent upon the issuance of a casino
20operator license to the successful bidder. If the Gaming Board
21approves the contract and grants a casino operator license, the
22Board shall transmit a copy of the executed casino management
23contract to the Gaming Board.
24    (d) After the Authority has been issued a casino license,
25the Gaming Board has issued a casino operator license, and the
26Gaming Board has approved the location of a temporary facility,

 

 

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1the Authority may conduct gaming operations at a temporary
2facility for no longer than 24 months after gaming operations
3begin. The Gaming Board may, after holding a public hearing,
4grant an extension so long as a permanent facility is not
5operational and the Authority is working in good faith to
6complete the permanent facility. The Gaming Board may grant
7additional extensions following a public hearing. Each
8extension may be for a period of no longer than 6 months.
9    (e) Fifty percent of any initial consideration received by
10the Authority that was paid as an inducement pursuant to a bid
11for a casino management contract or an executed casino
12management contract must be transmitted to the State and
13deposited into the Gaming Facilities Fee Revenue Fund. The
14initial consideration shall not include any amounts paid by an
15entity on behalf of the Authority for any license or per
16position fees imposed pursuant to the Illinois Gambling Act or
17any other financial obligation of the Authority.
 
18    Section 1-50. Transfer of funds. The revenues received by
19the Authority (other than amounts required to be paid pursuant
20to the Illinois Gambling Act and amounts required to pay the
21operating expenses of the Authority, to pay amounts due the
22casino operator licensee pursuant to a casino management
23contract, to repay any borrowing of the Authority made pursuant
24to Section 1-31, to pay debt service on any bonds issued under
25Section 1-75, and to pay any expenses in connection with the

 

 

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1issuance of such bonds pursuant to Section 1-75 or derivative
2products pursuant to Section 1-85) shall be transferred to the
3City by the Authority. The monies transferred to the City
4pursuant to this Section shall be expended or obligated by the
5City for the construction and maintenance of infrastructure and
6for related purposes within the municipality. Such
7infrastructure may include, but is not limited to, roads,
8bridges transit infrastructure, water and sewer
9infrastructure, schools, parks, and municipal facilities.
 
10    Section 1-60. Auditor General.
11    (a) Prior to the issuance of bonds under this Act, the
12Authority shall submit to the Auditor General a certification
13that:
14        (1) it is legally authorized to issue bonds;
15        (2) scheduled annual payments of principal and
16    interest on the bonds to be issued meet the requirements of
17    Section 1-75 of this Act;
18        (3) no bond shall mature later than 30 years; and
19        (4) after payment of costs of issuance and necessary
20    deposits to funds and accounts established with respect to
21    debt service on the bonds, the net bond proceeds (exclusive
22    of any proceeds to be used to refund outstanding bonds)
23    will be used only for the purposes set forth in this Act.
24    The Authority also shall submit to the Auditor General its
25projections on revenues to be generated and pledged to

 

 

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1repayment of the bonds as scheduled and such other information
2as the Auditor General may reasonably request.
3    The Auditor General shall examine the certifications and
4information submitted and submit a report to the Authority and
5the Gaming Board indicating whether the required
6certifications, projections, and other information have been
7submitted by the Authority and that the assumptions underlying
8the projections are not unreasonable in the aggregate. The
9Auditor General shall submit the report no later than 60 days
10after receiving the information required to be submitted by the
11Authority.
12    The Authority shall not issue bonds until it receives the
13report from the Auditor General indicating the requirements of
14this Section have been met. The Auditor General's report shall
15not be in the nature of a post-audit or examination and shall
16not lead to the issuance of an opinion, as that term is defined
17in generally accepted government auditing standards. The
18Auditor General shall submit a bill to the Authority for costs
19associated with the examinations and report required under this
20Section. The Authority shall reimburse in a timely manner.
21    (b) The Authority shall enter into an intergovernmental
22agreement with the Auditor General authorizing the Auditor
23General to, every 2 years, (i) review the financial audit of
24the Authority performed by the Authority's certified public
25accountants, (ii) perform a management audit of the Authority,
26and (iii) perform a management audit of the casino operator

 

 

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

 

 

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

 

 

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

 

 

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1    (b) The bonds of the Authority shall be payable from one or
2more of the following sources: (i) the property or revenues of
3the Authority; (ii) revenues derived from the casino; (iii)
4revenues derived from any casino operator licensee; (iv) fees,
5bid proceeds, charges, lease payments, payments required
6pursuant to any casino management contract or other revenues
7payable to the Authority, or any receipts of the Authority; (v)
8payments by financial institutions, insurance companies, or
9others pursuant to letters or lines of credit, policies of
10insurance, or purchase agreements; (vi) investment earnings
11from funds or accounts maintained pursuant to a bond resolution
12or trust indenture; (vii) proceeds of refunding bonds; (viii)
13any other revenues derived from or payments by the City; and
14(ix) any payments by any casino operator licensee or others
15pursuant to any guaranty agreement.
16    (c) Bonds shall be authorized by a resolution of the
17Authority and may be secured by a trust indenture by and
18between the Authority and a corporate trustee or trustees,
19which may be any trust company or bank having the powers of a
20trust company within or without the State. Bonds shall meet the
21following requirements:
22        (1) Bonds shall bear interest at a rate not to exceed
23    the maximum rate authorized by the Bond Authorization Act.
24        (2) Bonds issued pursuant to this Section may be
25    payable on such dates and times as may be provided for by
26    the resolution or indenture authorizing the issuance of

 

 

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1    such bonds; provided, however, that such bonds shall mature
2    no later than 30 years from the date of issuance.
3        (3) At least 25%, based on total principal amount, of
4    all bonds issued pursuant to this Section shall be sold
5    pursuant to notice of sale and public bid. No more than
6    75%, based on total principal amount, of all bonds issued
7    pursuant to this Section shall be sold by negotiated sale.
8        (4) Bonds shall be payable at a time or times, in the
9    denominations and form, including book entry form, either
10    coupon, registered, or both, and carry the registration and
11    privileges as to exchange, transfer or conversion, and
12    replacement of mutilated, lost, or destroyed bonds as the
13    resolution or trust indenture may provide.
14        (5) Bonds shall be payable in lawful money of the
15    United States at a designated place.
16        (6) Bonds shall be subject to the terms of purchase,
17    payment, redemption, refunding, or refinancing that the
18    resolution or trust indenture provides.
19        (7) Bonds shall be executed by the manual or facsimile
20    signatures of the officers of the Authority designated by
21    the Board, which signatures shall be valid at delivery even
22    for one who has ceased to hold office.
23        (8) Bonds shall be sold at public or private sale in
24    the manner and upon the terms determined by the Authority.
25        (9) Bonds shall be issued in accordance with the
26    provisions of the Local Government Debt Reform Act.

 

 

09700SB0747sam001- 24 -LRB097 04468 AEK 59057 a

1    (d) The Authority shall adopt a procurement program with
2respect to contracts relating to underwriters, bond counsel,
3financial advisors, and accountants. The program shall include
4goals for the payment of not less than 30% of the total dollar
5value of the fees from these contracts to certified
6minority-owned businesses and female-owned businesses as
7defined in the Business Enterprise for Minorities, Females, and
8Persons with Disabilities Act. The Authority shall conduct
9outreach to minority-owned businesses and female-owned
10businesses. Outreach shall include, but is not limited to,
11advertisements in periodicals and newspapers, mailings, and
12other appropriate media. The Authority shall submit to the
13General Assembly a comprehensive report that shall include, at
14a minimum, the details of the procurement plan, outreach
15efforts, and the results of the efforts to achieve goals for
16the payment of fees.
17    (e) Subject to the Illinois Gambling Act and rules of the
18Gaming Board regarding pledging of interests in holders of
19owners licenses, any resolution or trust indenture may contain
20provisions that may be a part of the contract with the holders
21of the bonds as to the following:
22        (1) Pledging, assigning, or directing the use,
23    investment, or disposition of revenues of the Authority or
24    proceeds or benefits of any contract, including without
25    limitation any rights in any casino management contract.
26        (2) The setting aside of loan funding deposits, debt

 

 

09700SB0747sam001- 25 -LRB097 04468 AEK 59057 a

1    service reserves, replacement or operating reserves, cost
2    of issuance accounts and sinking funds, and the regulation,
3    investment, and disposition thereof.
4        (3) Limitations on the purposes to which or the
5    investments in which the proceeds of sale of any issue of
6    bonds or the Authority's revenues and receipts may be
7    applied or made.
8        (4) Limitations on the issue of additional bonds, the
9    terms upon which additional bonds may be issued and
10    secured, the terms upon which additional bonds may rank on
11    a parity with, or be subordinate or superior to, other
12    bonds.
13        (5) The refunding, advance refunding, or refinancing
14    of outstanding bonds.
15        (6) The procedure, if any, by which the terms of any
16    contract with bondholders may be altered or amended and the
17    amount of bonds and holders of which must consent thereto
18    and the manner in which consent shall be given.
19        (7) Defining the acts or omissions that shall
20    constitute a default in the duties of the Authority to
21    holders of bonds and providing the rights or remedies of
22    such holders in the event of a default, which may include
23    provisions restricting individual rights of action by
24    bondholders.
25        (8) Providing for guarantees, pledges of property,
26    letters of credit, or other security, or insurance for the

 

 

09700SB0747sam001- 26 -LRB097 04468 AEK 59057 a

1    benefit of bondholders.
2    (f) No member of the Board, nor any person executing the
3bonds, shall be liable personally on the bonds or subject to
4any personal liability by reason of the issuance of the bonds.
5    (g) The Authority may issue and secure bonds in accordance
6with the provisions of the Local Government Credit Enhancement
7Act.
8    (h) A pledge by the Authority of revenues and receipts as
9security for an issue of bonds or for the performance of its
10obligations under any casino management contract shall be valid
11and binding from the time when the pledge is made. The revenues
12and receipts pledged shall immediately be subject to the lien
13of the pledge without any physical delivery or further act, and
14the lien of any pledge shall be valid and binding against any
15person having any claim of any kind in tort, contract, or
16otherwise against the Authority, irrespective of whether the
17person has notice. No resolution, trust indenture, management
18agreement or financing statement, continuation statement, or
19other instrument adopted or entered into by the Authority need
20be filed or recorded in any public record other than the
21records of the Authority in order to perfect the lien against
22third persons, regardless of any contrary provision of law.
23    (i) Bonds that are being paid or retired by issuance, sale,
24or delivery of bonds, and bonds for which sufficient funds have
25been deposited with the paying agent or trustee to provide for
26payment of principal and interest thereon, and any redemption

 

 

09700SB0747sam001- 27 -LRB097 04468 AEK 59057 a

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

 

 

09700SB0747sam001- 28 -LRB097 04468 AEK 59057 a

1company or firm that employs a person holding an elective
2office in this State, holding a seat in the General Assembly,
3or serving as a board member, trustee, officer, or employee of
4the Authority, including the spouse of that person, if the
5person or his or her spouse has greater than 7.5% ownership of
6the company or firm.
 
7    Section 1-85. Derivative products. With respect to all or
8part of any issue of its bonds, the Authority may enter into
9agreements or contracts with any necessary or appropriate
10person, which will have the benefit of providing to the
11Authority an interest rate basis, cash flow basis, or other
12basis different from that provided in the bonds for the payment
13of interest. Such agreements or contracts may include, without
14limitation, agreements or contracts commonly known as
15"interest rate swap agreements", "forward payment conversion
16agreements", "futures", "options", "puts", or "calls" and
17agreements or contracts providing for payments based on levels
18of or changes in interest rates, agreements or contracts to
19exchange cash flows or a series of payments, or to hedge
20payment, rate spread, or similar exposure.
 
21    Section 1-90. Legality for investment. The State of
22Illinois, all governmental entities, all public officers,
23banks, bankers, trust companies, savings banks and
24institutions, building and loan associations, savings and loan

 

 

09700SB0747sam001- 29 -LRB097 04468 AEK 59057 a

1associations, investment companies, and other persons carrying
2on a banking business, insurance companies, insurance
3associations, and other persons carrying on an insurance
4business, and all executors, administrators, guardians,
5trustees, and other fiduciaries may legally invest any sinking
6funds, moneys, or other funds belonging to them or within their
7control in any bonds issued under this Act. However, nothing in
8this Section shall be construed as relieving any person, firm,
9or corporation from any duty of exercising reasonable care in
10selecting securities for purchase or investment.
 
11    Section 1-105. Budgets and reporting.
12    (a) The Board shall annually adopt a budget for each fiscal
13year. The budget may be modified from time to time in the same
14manner and upon the same vote as it may be adopted. The budget
15shall include the Authority's available funds and estimated
16revenues and shall provide for payment of its obligations and
17estimated expenditures for the fiscal year, including, without
18limitation, expenditures for administration, operation,
19maintenance and repairs, debt service, and deposits into
20reserve and other funds and capital projects.
21    (b) The Board shall annually cause the finances of the
22Authority to be audited by a firm of certified public
23accountants selected by the Board in accordance with the rules
24of the Gaming Board and post the firm's audits of the Authority
25on the Authority's Internet website.

 

 

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1    (c) The Board shall, for each fiscal year, prepare an
2annual report setting forth information concerning its
3activities in the fiscal year and the status of the development
4of the casino. The annual report shall include the audited
5financial statements of the Authority for the fiscal year, the
6budget for the succeeding fiscal year, and the current capital
7plan as of the date of the report. Copies of the annual report
8shall be made available to persons who request them and shall
9be submitted not later than 120 days after the end of the
10Authority's fiscal year or, if the audit of the Authority's
11financial statements is not completed within 120 days after the
12end of the Authority's fiscal year, as soon as practical after
13completion of the audit, to the Governor, the Mayor, the
14General Assembly, and the Commission on Government Forecasting
15and Accountability.
 
16    Section 1-110. Deposit and withdrawal of funds.
17    (a) All funds deposited by the Authority in any bank or
18savings and loan association shall be placed in the name of the
19Authority and shall be withdrawn or paid out only by check or
20draft upon the bank or savings and loan association, signed by
212 officers or employees designated by the Board.
22Notwithstanding any other provision of this Section, the Board
23may designate any of its members or any officer or employee of
24the Authority to authorize the wire transfer of funds deposited
25by the secretary-treasurer of funds in a bank or savings and

 

 

09700SB0747sam001- 31 -LRB097 04468 AEK 59057 a

1loan association for the payment of payroll and employee
2benefits-related expenses.
3    No bank or savings and loan association shall receive
4public funds as permitted by this Section unless it has
5complied with the requirements established pursuant to Section
66 of the Public Funds Investment Act.
7    (b) If any officer or employee whose signature appears upon
8any check or draft issued pursuant to this Act ceases (after
9attaching his signature) to hold his or her office before the
10delivery of such a check or draft to the payee, his or her
11signature shall nevertheless be valid and sufficient for all
12purposes with the same effect as if he or she had remained in
13office until delivery thereof.
 
14    Section 1-112. Contracts with the Authority or casino
15operator licensee; disclosure requirements.
16    (a) A bidder, respondent, offeror, or contractor for
17contracts with the Authority or casino operator licensee shall
18disclose the identity of all officers and directors and every
19owner, beneficiary, or person with beneficial interest of more
20than 1% or shareholder entitled to receive more than 1% of the
21total distributable income of any corporation having any
22interest in the contract or in the bidder, respondent, offeror,
23or contractor. The disclosure shall be in writing and attested
24to by an owner, trustee, corporate official, or agent. If stock
25in a corporation is publicly traded and there is no readily

 

 

09700SB0747sam001- 32 -LRB097 04468 AEK 59057 a

1known individual having greater than a 1% interest, then a
2statement to that effect attested to by an officer or agent of
3the corporation shall fulfill the disclosure statement
4requirement of this Section. A bidder, respondent, offeror, or
5contractor shall notify the Authority of any changes in
6officers, directors, ownership, or individuals having a
7beneficial interest of more than 1%.
8    (b) A bidder, respondent, offeror, or contractor for
9contracts with an annual value of $10,000 or more or for a
10period to exceed one year shall disclose all political
11contributions of the bidder, respondent, offeror, or
12contractor and any affiliated person or entity. Disclosure
13shall include at least the names and addresses of the
14contributors and the dollar amounts of any contributions to any
15political committee made within the previous 2 years. The
16disclosure must be submitted to the Gaming Board with a copy of
17the contract.
18    (c) As used in this Section:
19    "Contribution" means contribution as defined in Section
209-1.4 of the Election Code.
21    "Affiliated person" means (i) any person with any ownership
22interest or distributive share of the bidding, responding, or
23contracting entity in excess of 1%, (ii) executive employees of
24the bidding, responding, or contracting entity, and (iii) the
25spouse and minor children of any such persons.
26    "Affiliated entity" means (i) any parent or subsidiary of

 

 

09700SB0747sam001- 33 -LRB097 04468 AEK 59057 a

1the bidding or contracting entity, (ii) any member of the same
2unitary business group, or (iii) any political committee for
3which the bidding, responding, or contracting entity is the
4sponsoring entity.
5    (d) The Gaming Board may direct the Authority or a casino
6operator licensee to void a contract if a violation of this
7Section occurs. The Authority may direct a casino operator
8licensee to void a contract if a violation of this Section
9occurs.
10    (e) All contracts pertaining to the actual operation of the
11casino and related gaming activities shall be entered into by
12the casino operator licensee and not the Authority.
 
13    Section 1-115. Purchasing.
14    (a) All construction contracts and contracts for supplies,
15materials, equipment, and services, when the cost thereof to
16the Authority or its agent exceeds the small purchase amount
17set by the Illinois Procurement Code, shall be let by a
18competitive selection process pursuant to the procedures of one
19of the following as applicable: Article 20, 30, 33, or 35 of
20the Illinois Procurement Code.
21    (b) All contracts involving less than the small purchase
22amount set by the Illinois Procurement Code shall be let by
23competitive selection process whenever possible, and in any
24event in a manner calculated to ensure the best interests of
25the public.

 

 

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1    (c) In determining the responsibility of any proposer, the
2Authority shall take into account the responsibility factors
3enumerated in Section 1.2046 of Title 44 of the Illinois
4Administrative Code including the proposer's (or an individual
5having a beneficial interest, directly or indirectly, of more
6than 1% in such proposing entity) past record of dealings with
7the Authority, the proposer's experience, adequacy of
8equipment, and ability to complete performance within the time
9set, and other factors besides financial responsibility. No
10such contract shall be awarded to any proposer other than the
11lowest proposer (in case of purchase or expenditure) unless
12authorized or approved by a vote of at least 3 members of the
13Board and such action is accompanied by a written statement
14setting forth the reasons for not awarding the contract to the
15highest or lowest proposer, as the case may be. The statement
16shall be kept on file in the principal office of the Authority
17and open to public inspection.
18    (d) The Authority shall have the right to reject all
19proposals and to re-advertise for proposals. If after any such
20re-advertisement, no proposals meet the mandatory minimum
21requirements within the terms of the original bid or the
22re-advertisement, the Authority may award such contract
23without competitive selection, provided that the Gaming Board
24must approve the contract prior to its execution. The contract
25must not be less advantageous to the Authority than any valid
26proposal received pursuant to advertisement.

 

 

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1    (e) Advertisements for proposals and re-proposals shall be
2published at least once in a daily newspaper of general
3circulation published in the City at least 10 calendar days
4before the time for receiving proposals in an online bulletin
5published on the Authority's website and in the Illinois
6Procurement Bulletin. Such advertisements shall state the time
7and place for receiving and opening of proposals and, by
8reference to plans and specifications on file at the time of
9the first publication or in the advertisement itself, shall
10describe the character of the proposed contract in sufficient
11detail to fully advise prospective proposers of their
12obligations and to ensure free and open competitive selection.
13    (f) All proposals in response to advertisements shall be
14sealed and shall be publicly opened by the Authority. All
15proposers shall be entitled to be present in person or by
16representatives at bid opening. Cash or a certified or
17satisfactory cashier's check, as a deposit of good faith, in a
18reasonable amount to be fixed by the Authority before
19advertising for proposals, shall be required with the proposal.
20A bond for faithful performance of the contract with surety or
21sureties satisfactory to the Authority and adequate insurance
22may be required in reasonable amounts to be fixed by the
23Authority before advertising for proposals.
24    (g) The contract shall be awarded as promptly as possible
25after the opening of proposals. The proposal of the successful
26proposer, as well as the bids of the unsuccessful proposers,

 

 

09700SB0747sam001- 36 -LRB097 04468 AEK 59057 a

1shall be placed on file and be open to public inspection
2subject to the exemptions from disclosure provided under
3Section 7 of the Freedom of Information Act. All proposals
4shall be void if any disclosure of the terms of any proposals
5in response to an advertisement is made or permitted to be made
6by the Authority before the time fixed for opening proposals.
7    (h) Notice of each and every contract that is offered,
8including renegotiated contracts and change orders, shall be
9published in an online bulletin and the appropriate Illinois
10Procurement Bulletin. The online bulletin must include at least
11the date first offered, the date submission of offers is due,
12the location that offers are to be submitted to, a brief
13purchase description, the method of source selection,
14information of how to obtain a comprehensive purchase
15description and any disclosure and contract forms, and
16encouragement to prospective vendors to hire qualified
17veterans, as defined by Section 45-67 of the Illinois
18Procurement Code, and Illinois residents discharged from any
19Illinois adult correctional center subject to Gaming Board
20licensing and eligibility rules. Notice of each and every
21contract that is let or awarded, including renegotiated
22contracts and change orders, shall be published in the online
23bulletin and must include at least all of the information
24specified in this subsection (h), as well as the name of the
25successful responsible proposer or offeror, the contract
26price, and the number of unsuccessful responsive proposers and

 

 

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1any other disclosure specified in this Section. This notice
2must be posted in the online electronic bulletin prior to
3execution of the contract.
4    (i) The Gaming Board shall act as Chief Procurement Officer
5for the Authority.
 
6    Section 1-130. Affirmative action and equal opportunity
7obligations of Authority.
8    (a) The Authority is subject to the requirements of Article
9IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
10inclusive) of the Chicago Municipal Code, as now or hereafter
11amended, renumbered, or succeeded, concerning a Minority-Owned
12and Women-Owned Business Enterprise Procurement Program for
13construction contracts, and Section 2-92-420 et seq. of the
14Chicago Municipal Code, as now or hereafter amended,
15renumbered, or succeeded, concerning a Minority-Owned and
16Women-Owned Business Enterprise Procurement Program to
17determine the status of a firm as a Minority Business
18Enterprise for city procurement purposes.
19    (b) The Authority is authorized to enter into agreements
20with contractors' associations, labor unions, and the
21contractors working on the development of the casino to
22establish an apprenticeship preparedness training program to
23provide for an increase in the number of minority and female
24journeymen and apprentices in the building trades and to enter
25into agreements with community college districts or other

 

 

09700SB0747sam001- 38 -LRB097 04468 AEK 59057 a

1public or private institutions to provide readiness training.
2The Authority is further authorized to enter into contracts
3with public and private educational institutions and persons in
4the gaming, entertainment, hospitality, and tourism industries
5to provide training for employment in those industries.
 
6    Section 1-135. Transfer of interest. Neither the Authority
7nor the City may sell, lease, rent, transfer, exchange, or
8otherwise convey any interest that they have in the casino
9without prior approval of the General Assembly.
 
10    Section 1-140. Home rule. The regulation and licensing of
11casinos and casino gaming, casino gaming facilities, and casino
12operator licensees under this Act are exclusive powers and
13functions of the State. A home rule unit may not regulate or
14license casinos, casino gaming, casino gaming facilities, or
15casino operator licensees under this Act, except as provided
16under this Act. This Section is a denial and limitation of home
17rule powers and functions under subsection (h) of Section 6 of
18Article VII of the Illinois Constitution.
 
19
ARTICLE 90.

 
20    Section 90-1. Findings. The General Assembly makes all of
21the following findings:
22        (1) That more than 50 municipalities and 5 counties

 

 

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1    have opted out of video gaming legislation that was enacted
2    by the 96th General Assembly as Public Act 96-34, and
3    revenues for the State's newly approved capital
4    construction program are on track to fall short of
5    projections.
6        (2) That these shortfalls could postpone much-needed
7    road construction, school construction, and other
8    infrastructure improvements.
9        (3) That the State likely will wait a year or more,
10    until video gaming is licensed, organized, and online, to
11    realize meaningful revenue from the program.
12        (4) That a significant infusion of new revenue is
13    necessary to ensure that those projects, which are
14    fundamental to the State's economic recovery, proceed as
15    planned.
16        (5) That the decline of the Illinois horse racing and
17    breeding program, a $2.5 billion industry, would be
18    reversed if this amendatory Act of the 97th General
19    Assembly would be enacted.
20        (6) That the Illinois horse racing industry is on the
21    verge of extinction due to fierce competition from fully
22    developed horse racing and gaming operations in other
23    states.
24        (7) That Illinois lawmakers agreed in 1999 to earmark
25    15% of the forthcoming 10th riverboat's revenue for horse
26    racing; however, the 10th riverboat did not become

 

 

09700SB0747sam001- 40 -LRB097 04468 AEK 59057 a

1    operational until July, 2011.
2        (8) That allowing the State's horse racing venues,
3    currently licensed gaming destinations, to maximize their
4    capacities with gaming machines, would generate up to $120
5    million to $200 million for the State in the form of extra
6    licensing fees, plus an additional $100 million to $300
7    million in recurring annual tax revenue for the State to
8    help ensure that school, road, and other building projects
9    promised under the capital plan occur on schedule.
10        (9) That Illinois agriculture and other businesses
11    that support and supply the horse racing industry, already
12    a sector that employs over 37,000 Illinoisans, also stand
13    to substantially benefit and would be much more likely to
14    create additional jobs should Illinois horse racing once
15    again become competitive with other states.
16        (10) That by keeping these projects on track, the State
17    can be sure that significant job and economic growth will
18    in fact result from the previously enacted legislation.
19        (11) That gaming machines at Illinois horse racing
20    tracks would create an estimated 1,200 to 1,500 permanent
21    jobs, and an estimated capital investment of up to $200
22    million to $400 million at these race tracks would prompt
23    additional trade organization jobs necessary to construct
24    new facilities or remodel race tracks to operate electronic
25    gaming.
 

 

 

09700SB0747sam001- 41 -LRB097 04468 AEK 59057 a

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

 

 

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

 

 

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

 

 

09700SB0747sam001- 44 -LRB097 04468 AEK 59057 a

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

 

 

09700SB0747sam001- 45 -LRB097 04468 AEK 59057 a

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

 

 

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1        (4) the head of a department, commission, board,
2    division, bureau, authority, or other administrative unit
3    within the government of this State;
4        (5) chief procurement officers, State purchasing
5    officers, and their designees whose duties are directly
6    related to State procurement; and
7        (6) chiefs of staff, deputy chiefs of staff, associate
8    chiefs of staff, assistant chiefs of staff, and deputy
9    governors; .
10        (7) employees of the Illinois Racing Board; and
11        (8) employees of the Illinois Gaming Board.
12(Source: P.A. 96-555, eff. 8-18-09.)
 
13    (5 ILCS 430/20-10)
14    Sec. 20-10. Offices of Executive Inspectors General.
15    (a) Six Five independent Offices of the Executive Inspector
16General are created, one each for the Governor, the Attorney
17General, the Secretary of State, the Comptroller, and the
18Treasurer and one for gaming activities. Each Office shall be
19under the direction and supervision of an Executive Inspector
20General and shall be a fully independent office with separate
21appropriations.
22    (b) The Governor, Attorney General, Secretary of State,
23Comptroller, and Treasurer shall each appoint an Executive
24Inspector General, and the Governor shall appoint an Executive
25Inspector General for gaming activities. Each appointment must

 

 

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1be madewithout regard to political affiliation and solely on
2the basis of integrity and demonstrated ability. Appointments
3shall be made by and with the advice and consent of the Senate
4by three-fifths of the elected members concurring by record
5vote. Any nomination not acted upon by the Senate within 60
6session days of the receipt thereof shall be deemed to have
7received the advice and consent of the Senate. If, during a
8recess of the Senate, there is a vacancy in an office of
9Executive Inspector General, the appointing authority shall
10make a temporary appointment until the next meeting of the
11Senate when the appointing authority shall make a nomination to
12fill that office. No person rejected for an office of Executive
13Inspector General shall, except by the Senate's request, be
14nominated again for that office at the same session of the
15Senate or be appointed to that office during a recess of that
16Senate.
17    Nothing in this Article precludes the appointment by the
18Governor, Attorney General, Secretary of State, Comptroller,
19or Treasurer of any other inspector general required or
20permitted by law. The Governor, Attorney General, Secretary of
21State, Comptroller, and Treasurer each may appoint an existing
22inspector general as the Executive Inspector General required
23by this Article, provided that such an inspector general is not
24prohibited by law, rule, jurisdiction, qualification, or
25interest from serving as the Executive Inspector General
26required by this Article. An appointing authority may not

 

 

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1appoint a relative as an Executive Inspector General.
2    Each Executive Inspector General shall have the following
3qualifications:
4        (1) has not been convicted of any felony under the laws
5    of this State, another State, or the United States;
6        (2) has earned a baccalaureate degree from an
7    institution of higher education; and
8        (3) has 5 or more years of cumulative service (A) with
9    a federal, State, or local law enforcement agency, at least
10    2 years of which have been in a progressive investigatory
11    capacity; (B) as a federal, State, or local prosecutor; (C)
12    as a senior manager or executive of a federal, State, or
13    local agency; (D) as a member, an officer, or a State or
14    federal judge; or (E) representing any combination of (A)
15    through (D).
16    The term of each initial Executive Inspector General shall
17commence upon qualification and shall run through June 30,
182008. The initial appointments shall be made within 60 days
19after the effective date of this Act.
20    After the initial term, each Executive Inspector General
21shall serve for 5-year terms commencing on July 1 of the year
22of appointment and running through June 30 of the fifth
23following year. An Executive Inspector General may be
24reappointed to one or more subsequent terms.
25    A vacancy occurring other than at the end of a term shall
26be filled by the appointing authority only for the balance of

 

 

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1the term of the Executive Inspector General whose office is
2vacant.
3    Terms shall run regardless of whether the position is
4filled.
5    (c) The Executive Inspector General appointed by the
6Attorney General shall have jurisdiction over the Attorney
7General and all officers and employees of, and vendors and
8others doing business with, State agencies within the
9jurisdiction of the Attorney General. The Executive Inspector
10General appointed by the Secretary of State shall have
11jurisdiction over the Secretary of State and all officers and
12employees of, and vendors and others doing business with, State
13agencies within the jurisdiction of the Secretary of State. The
14Executive Inspector General appointed by the Comptroller shall
15have jurisdiction over the Comptroller and all officers and
16employees of, and vendors and others doing business with, State
17agencies within the jurisdiction of the Comptroller. The
18Executive Inspector General appointed by the Treasurer shall
19have jurisdiction over the Treasurer and all officers and
20employees of, and vendors and others doing business with, State
21agencies within the jurisdiction of the Treasurer. The
22Executive Inspector General appointed by the Governor shall
23have jurisdiction over (i) the Governor, (ii) the Lieutenant
24Governor, (iii) all officers and employees of, and vendors and
25others doing business with, executive branch State agencies
26under the jurisdiction of the Executive Ethics Commission and

 

 

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1not within the jurisdiction of the Attorney General, the
2Secretary of State, the Comptroller, or the Treasurer, or the
3Executive Inspector General for gaming activities, and (iv) all
4board members and employees of the Regional Transit Boards and
5all vendors and others doing business with the Regional Transit
6Boards. The Executive Inspector General for gaming activities
7appointed by the Governor has exclusive jurisdiction over the
8Illinois Gaming Board, all officers and employees of the
9Illinois Gaming Board, and all activities of the Illinois
10Gaming Board.
11    The jurisdiction of each Executive Inspector General is to
12investigate allegations of fraud, waste, abuse, mismanagement,
13misconduct, nonfeasance, misfeasance, malfeasance, or
14violations of this Act or violations of other related laws and
15rules.
16    (d) The compensation for each Executive Inspector General
17shall be determined by the Executive Ethics Commission and
18shall be made from appropriations made to the Comptroller for
19this purpose. Subject to Section 20-45 of this Act, each
20Executive Inspector General has full authority to organize his
21or her Office of the Executive Inspector General, including the
22employment and determination of the compensation of staff, such
23as deputies, assistants, and other employees, as
24appropriations permit. A separate appropriation shall be made
25for each Office of Executive Inspector General.
26    (e) No Executive Inspector General or employee of the

 

 

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1Office of the Executive Inspector General may, during his or
2her term of appointment or employment:
3        (1) become a candidate for any elective office;
4        (2) hold any other elected or appointed public office
5    except for appointments on governmental advisory boards or
6    study commissions or as otherwise expressly authorized by
7    law;
8        (3) be actively involved in the affairs of any
9    political party or political organization; or
10        (4) advocate for the appointment of another person to
11    an appointed or elected office or position or actively
12    participate in any campaign for any elective office.
13    In this subsection an appointed public office means a
14position authorized by law that is filled by an appointing
15authority as provided by law and does not include employment by
16hiring in the ordinary course of business.
17    (e-1) No Executive Inspector General or employee of the
18Office of the Executive Inspector General may, for one year
19after the termination of his or her appointment or employment:
20        (1) become a candidate for any elective office;
21        (2) hold any elected public office; or
22        (3) hold any appointed State, county, or local judicial
23    office.
24    (e-2) The requirements of item (3) of subsection (e-1) may
25be waived by the Executive Ethics Commission.
26    (f) An Executive Inspector General may be removed only for

 

 

09700SB0747sam001- 52 -LRB097 04468 AEK 59057 a

1cause and may be removed only by the appointing constitutional
2officer. At the time of the removal, the appointing
3constitutional officer must report to the Executive Ethics
4Commission the justification for the removal.
5(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
 
6    Section 90-5. The Alcoholism and Other Drug Abuse and
7Dependency Act is amended by changing Section 5-20 as follows:
 
8    (20 ILCS 301/5-20)
9    Sec. 5-20. Compulsive gambling program.
10    (a) Subject to appropriation, the Department shall
11establish a program for public education, research, and
12training regarding problem and compulsive gambling and the
13treatment and prevention of problem and compulsive gambling.
14Subject to specific appropriation for these stated purposes,
15the program must include all of the following:
16        (1) Establishment and maintenance of a toll-free "800"
17    telephone number to provide crisis counseling and referral
18    services to families experiencing difficulty as a result of
19    problem or compulsive gambling.
20        (2) Promotion of public awareness regarding the
21    recognition and prevention of problem and compulsive
22    gambling.
23        (3) Facilitation, through in-service training and
24    other means, of the availability of effective assistance

 

 

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1    programs for problem and compulsive gamblers.
2        (4) Conducting studies to identify adults and
3    juveniles in this State who are, or who are at risk of
4    becoming, problem or compulsive gamblers.
5    (b) Subject to appropriation, the Department shall either
6establish and maintain the program or contract with a private
7or public entity for the establishment and maintenance of the
8program. Subject to appropriation, either the Department or the
9private or public entity shall implement the toll-free
10telephone number, promote public awareness, and conduct
11in-service training concerning problem and compulsive
12gambling.
13    (c) Subject to appropriation, the Department shall produce
14and supply the signs specified in Section 10.7 of the Illinois
15Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
161975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
17of the Charitable Games Act, and Section 13.1 of the Illinois
18Riverboat Gambling Act.
19(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
20    Section 90-7. The Department of Commerce and Economic
21Opportunity Law of the Civil Administrative Code of Illinois is
22amended by adding Section 605-530 as follows:
 
23    (20 ILCS 605/605-530 new)
24    Sec. 605-530. The Depressed Communities Economic

 

 

09700SB0747sam001- 54 -LRB097 04468 AEK 59057 a

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

 

 

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1Commerce and Economic Opportunity concerning the award of
2grants from amounts appropriated to the Department from the
3Depressed Communities Economic Development Fund, a special
4fund created in the State treasury. The Department must make
5grants to public or private entities submitting proposals to
6the Board to revitalize an Illinois depressed community. Grants
7may be used by these entities only for those purposes
8conditioned with the grant. For the purposes of this subsection
9(c), plans for revitalizing an Illinois depressed community
10include plans intended to curb high levels of poverty,
11unemployment, job and population loss, and general distress. An
12Illinois depressed community is an area where the poverty rate,
13as determined by using the most recent data released by the
14United States Census Bureau, is at least 3% greater than the
15State poverty rate as determined by using the most recent data
16released by the United States Census Bureau.
 
17    Section 90-8. The Illinois Lottery Law is amended by
18changing Section 9.1 as follows:
 
19    (20 ILCS 1605/9.1)
20    Sec. 9.1. Private manager and management agreement.
21    (a) As used in this Section:
22    "Offeror" means a person or group of persons that responds
23to a request for qualifications under this Section.
24    "Request for qualifications" means all materials and

 

 

09700SB0747sam001- 56 -LRB097 04468 AEK 59057 a

1documents prepared by the Department to solicit the following
2from offerors:
3        (1) Statements of qualifications.
4        (2) Proposals to enter into a management agreement,
5    including the identity of any prospective vendor or vendors
6    that the offeror intends to initially engage to assist the
7    offeror in performing its obligations under the management
8    agreement.
9    "Final offer" means the last proposal submitted by an
10offeror in response to the request for qualifications,
11including the identity of any prospective vendor or vendors
12that the offeror intends to initially engage to assist the
13offeror in performing its obligations under the management
14agreement.
15    "Final offeror" means the offeror ultimately selected by
16the Governor to be the private manager for the Lottery under
17subsection (h) of this Section.
18    (b) By September 15, 2010, the Governor shall select a
19private manager for the total management of the Lottery with
20integrated functions, such as lottery game design, supply of
21goods and services, and advertising and as specified in this
22Section.
23    (c) Pursuant to the terms of this subsection, the
24Department shall endeavor to expeditiously terminate the
25existing contracts in support of the Lottery in effect on the
26effective date of this amendatory Act of the 96th General

 

 

09700SB0747sam001- 57 -LRB097 04468 AEK 59057 a

1Assembly in connection with the selection of the private
2manager. As part of its obligation to terminate these contracts
3and select the private manager, the Department shall establish
4a mutually agreeable timetable to transfer the functions of
5existing contractors to the private manager so that existing
6Lottery operations are not materially diminished or impaired
7during the transition. To that end, the Department shall do the
8following:
9        (1) where such contracts contain a provision
10    authorizing termination upon notice, the Department shall
11    provide notice of termination to occur upon the mutually
12    agreed timetable for transfer of functions;
13        (2) upon the expiration of any initial term or renewal
14    term of the current Lottery contracts, the Department shall
15    not renew such contract for a term extending beyond the
16    mutually agreed timetable for transfer of functions; or
17        (3) in the event any current contract provides for
18    termination of that contract upon the implementation of a
19    contract with the private manager, the Department shall
20    perform all necessary actions to terminate the contract on
21    the date that coincides with the mutually agreed timetable
22    for transfer of functions.
23    If the contracts to support the current operation of the
24Lottery in effect on the effective date of this amendatory Act
25of the 96th General Assembly are not subject to termination as
26provided for in this subsection (c), then the Department may

 

 

09700SB0747sam001- 58 -LRB097 04468 AEK 59057 a

1include a provision in the contract with the private manager
2specifying a mutually agreeable methodology for incorporation.
3    (c-5) The Department shall include provisions in the
4management agreement whereby the private manager shall, for a
5fee, and pursuant to a contract negotiated with the Department
6(the "Employee Use Contract"), utilize the services of current
7Department employees to assist in the administration and
8operation of the Lottery. The Department shall be the employer
9of all such bargaining unit employees assigned to perform such
10work for the private manager, and such employees shall be State
11employees, as defined by the Personnel Code. Department
12employees shall operate under the same employment policies,
13rules, regulations, and procedures, as other employees of the
14Department. In addition, neither historical representation
15rights under the Illinois Public Labor Relations Act, nor
16existing collective bargaining agreements, shall be disturbed
17by the management agreement with the private manager for the
18management of the Lottery.
19    (d) The management agreement with the private manager shall
20include all of the following:
21        (1) A term not to exceed 10 years, including any
22    renewals.
23        (2) A provision specifying that the Department:
24            (A) shall exercise actual control over all
25        significant business decisions;
26            (A-5) has the authority to direct or countermand

 

 

09700SB0747sam001- 59 -LRB097 04468 AEK 59057 a

1        operating decisions by the private manager at any time;
2            (B) has ready access at any time to information
3        regarding Lottery operations;
4            (C) has the right to demand and receive information
5        from the private manager concerning any aspect of the
6        Lottery operations at any time; and
7            (D) retains ownership of all trade names,
8        trademarks, and intellectual property associated with
9        the Lottery.
10        (3) A provision imposing an affirmative duty on the
11    private manager to provide the Department with material
12    information and with any information the private manager
13    reasonably believes the Department would want to know to
14    enable the Department to conduct the Lottery.
15        (4) A provision requiring the private manager to
16    provide the Department with advance notice of any operating
17    decision that bears significantly on the public interest,
18    including, but not limited to, decisions on the kinds of
19    games to be offered to the public and decisions affecting
20    the relative risk and reward of the games being offered, so
21    the Department has a reasonable opportunity to evaluate and
22    countermand that decision.
23        (5) A provision providing for compensation of the
24    private manager that may consist of, among other things, a
25    fee for services and a performance based bonus as
26    consideration for managing the Lottery, including terms

 

 

09700SB0747sam001- 60 -LRB097 04468 AEK 59057 a

1    that may provide the private manager with an increase in
2    compensation if Lottery revenues grow by a specified
3    percentage in a given year.
4        (6) (Blank).
5        (7) A provision requiring the deposit of all Lottery
6    proceeds to be deposited into the State Lottery Fund except
7    as otherwise provided in Section 20 of this Act.
8        (8) A provision requiring the private manager to locate
9    its principal office within the State.
10        (8-5) A provision encouraging that at least 20% of the
11    cost of contracts entered into for goods and services by
12    the private manager in connection with its management of
13    the Lottery, other than contracts with sales agents or
14    technical advisors, be awarded to businesses that are a
15    minority owned business, a female owned business, or a
16    business owned by a person with disability, as those terms
17    are defined in the Business Enterprise for Minorities,
18    Females, and Persons with Disabilities Act.
19        (9) A requirement that so long as the private manager
20    complies with all the conditions of the agreement under the
21    oversight of the Department, the private manager shall have
22    the following duties and obligations with respect to the
23    management of the Lottery:
24            (A) The right to use equipment and other assets
25        used in the operation of the Lottery.
26            (B) The rights and obligations under contracts

 

 

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1        with retailers and vendors.
2            (C) The implementation of a comprehensive security
3        program by the private manager.
4            (D) The implementation of a comprehensive system
5        of internal audits.
6            (E) The implementation of a program by the private
7        manager to curb compulsive gambling by persons playing
8        the Lottery.
9            (F) A system for determining (i) the type of
10        Lottery games, (ii) the method of selecting winning
11        tickets, (iii) the manner of payment of prizes to
12        holders of winning tickets, (iv) the frequency of
13        drawings of winning tickets, (v) the method to be used
14        in selling tickets, (vi) a system for verifying the
15        validity of tickets claimed to be winning tickets,
16        (vii) the basis upon which retailer commissions are
17        established by the manager, and (viii) minimum
18        payouts.
19        (10) A requirement that advertising and promotion must
20    be consistent with Section 7.8a of this Act.
21        (11) A requirement that the private manager market the
22    Lottery to those residents who are new, infrequent, or
23    lapsed players of the Lottery, especially those who are
24    most likely to make regular purchases on the Internet as
25    permitted by law.
26        (12) A code of ethics for the private manager's

 

 

09700SB0747sam001- 62 -LRB097 04468 AEK 59057 a

1    officers and employees.
2        (13) A requirement that the Department monitor and
3    oversee the private manager's practices and take action
4    that the Department considers appropriate to ensure that
5    the private manager is in compliance with the terms of the
6    management agreement, while allowing the manager, unless
7    specifically prohibited by law or the management
8    agreement, to negotiate and sign its own contracts with
9    vendors.
10        (14) A provision requiring the private manager to
11    periodically file, at least on an annual basis, appropriate
12    financial statements in a form and manner acceptable to the
13    Department.
14        (15) Cash reserves requirements.
15        (16) Procedural requirements for obtaining the prior
16    approval of the Department when a management agreement or
17    an interest in a management agreement is sold, assigned,
18    transferred, or pledged as collateral to secure financing.
19        (17) Grounds for the termination of the management
20    agreement by the Department or the private manager.
21        (18) Procedures for amendment of the agreement.
22        (19) A provision requiring the private manager to
23    engage in an open and competitive bidding process for any
24    procurement having a cost in excess of $50,000 that is not
25    a part of the private manager's final offer. The process
26    shall favor the selection of a vendor deemed to have

 

 

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1    submitted a proposal that provides the Lottery with the
2    best overall value. The process shall not be subject to the
3    provisions of the Illinois Procurement Code, unless
4    specifically required by the management agreement.
5        (20) The transition of rights and obligations,
6    including any associated equipment or other assets used in
7    the operation of the Lottery, from the manager to any
8    successor manager of the lottery, including the
9    Department, following the termination of or foreclosure
10    upon the management agreement.
11        (21) Right of use of copyrights, trademarks, and
12    service marks held by the Department in the name of the
13    State. The agreement must provide that any use of them by
14    the manager shall only be for the purpose of fulfilling its
15    obligations under the management agreement during the term
16    of the agreement.
17        (22) The disclosure of any information requested by the
18    Department to enable it to comply with the reporting
19    requirements and information requests provided for under
20    subsection (p) of this Section.
21    (e) Notwithstanding any other law to the contrary, the
22Department shall select a private manager through a competitive
23request for qualifications process consistent with Section
2420-35 of the Illinois Procurement Code, which shall take into
25account:
26        (1) the offeror's ability to market the Lottery to

 

 

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1    those residents who are new, infrequent, or lapsed players
2    of the Lottery, especially those who are most likely to
3    make regular purchases on the Internet;
4        (2) the offeror's ability to address the State's
5    concern with the social effects of gambling on those who
6    can least afford to do so;
7        (3) the offeror's ability to provide the most
8    successful management of the Lottery for the benefit of the
9    people of the State based on current and past business
10    practices or plans of the offeror; and
11        (4) the offeror's poor or inadequate past performance
12    in servicing, equipping, operating or managing a lottery on
13    behalf of Illinois, another State or foreign government and
14    attracting persons who are not currently regular players of
15    a lottery.
16    (f) The Department may retain the services of an advisor or
17advisors with significant experience in financial services or
18the management, operation, and procurement of goods, services,
19and equipment for a government-run lottery to assist in the
20preparation of the terms of the request for qualifications and
21selection of the private manager. Any prospective advisor
22seeking to provide services under this subsection (f) shall
23disclose any material business or financial relationship
24during the past 3 years with any potential offeror, or with a
25contractor or subcontractor presently providing goods,
26services, or equipment to the Department to support the

 

 

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1Lottery. The Department shall evaluate the material business or
2financial relationship of each prospective advisor. The
3Department shall not select any prospective advisor with a
4substantial business or financial relationship that the
5Department deems to impair the objectivity of the services to
6be provided by the prospective advisor. During the course of
7the advisor's engagement by the Department, and for a period of
8one year thereafter, the advisor shall not enter into any
9business or financial relationship with any offeror or any
10vendor identified to assist an offeror in performing its
11obligations under the management agreement. Any advisor
12retained by the Department shall be disqualified from being an
13offeror. The Department shall not include terms in the request
14for qualifications that provide a material advantage whether
15directly or indirectly to any potential offeror, or any
16contractor or subcontractor presently providing goods,
17services, or equipment to the Department to support the
18Lottery, including terms contained in previous responses to
19requests for proposals or qualifications submitted to
20Illinois, another State or foreign government when those terms
21are uniquely associated with a particular potential offeror,
22contractor, or subcontractor. The request for proposals
23offered by the Department on December 22, 2008 as
24"LOT08GAMESYS" and reference number "22016176" is declared
25void.
26    (g) The Department shall select at least 2 offerors as

 

 

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1finalists to potentially serve as the private manager no later
2than August 9, 2010. Upon making preliminary selections, the
3Department shall schedule a public hearing on the finalists'
4proposals and provide public notice of the hearing at least 7
5calendar days before the hearing. The notice must include all
6of the following:
7        (1) The date, time, and place of the hearing.
8        (2) The subject matter of the hearing.
9        (3) A brief description of the management agreement to
10    be awarded.
11        (4) The identity of the offerors that have been
12    selected as finalists to serve as the private manager.
13        (5) The address and telephone number of the Department.
14    (h) At the public hearing, the Department shall (i) provide
15sufficient time for each finalist to present and explain its
16proposal to the Department and the Governor or the Governor's
17designee, including an opportunity to respond to questions
18posed by the Department, Governor, or designee and (ii) allow
19the public and non-selected offerors to comment on the
20presentations. The Governor or a designee shall attend the
21public hearing. After the public hearing, the Department shall
22have 14 calendar days to recommend to the Governor whether a
23management agreement should be entered into with a particular
24finalist. After reviewing the Department's recommendation, the
25Governor may accept or reject the Department's recommendation,
26and shall select a final offeror as the private manager by

 

 

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1publication of a notice in the Illinois Procurement Bulletin on
2or before September 15, 2010. The Governor shall include in the
3notice a detailed explanation and the reasons why the final
4offeror is superior to other offerors and will provide
5management services in a manner that best achieves the
6objectives of this Section. The Governor shall also sign the
7management agreement with the private manager.
8    (i) Any action to contest the private manager selected by
9the Governor under this Section must be brought within 7
10calendar days after the publication of the notice of the
11designation of the private manager as provided in subsection
12(h) of this Section.
13    (j) The Lottery shall remain, for so long as a private
14manager manages the Lottery in accordance with provisions of
15this Act, a Lottery conducted by the State, and the State shall
16not be authorized to sell or transfer the Lottery to a third
17party.
18    (k) Any tangible personal property used exclusively in
19connection with the lottery that is owned by the Department and
20leased to the private manager shall be owned by the Department
21in the name of the State and shall be considered to be public
22property devoted to an essential public and governmental
23function.
24    (l) The Department may exercise any of its powers under
25this Section or any other law as necessary or desirable for the
26execution of the Department's powers under this Section.

 

 

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1    (m) Neither this Section nor any management agreement
2entered into under this Section prohibits the General Assembly
3from authorizing forms of gambling that are not in direct
4competition with the Lottery. The forms of gambling authorized
5by this amendatory Act of the 97th General Assembly constitute
6authorized forms of gambling that are not in direct competition
7with the Lottery.
8    (n) The private manager shall be subject to a complete
9investigation in the third, seventh, and tenth years of the
10agreement (if the agreement is for a 10-year term) by the
11Department in cooperation with the Auditor General to determine
12whether the private manager has complied with this Section and
13the management agreement. The private manager shall bear the
14cost of an investigation or reinvestigation of the private
15manager under this subsection.
16    (o) The powers conferred by this Section are in addition
17and supplemental to the powers conferred by any other law. If
18any other law or rule is inconsistent with this Section,
19including, but not limited to, provisions of the Illinois
20Procurement Code, then this Section controls as to any
21management agreement entered into under this Section. This
22Section and any rules adopted under this Section contain full
23and complete authority for a management agreement between the
24Department and a private manager. No law, procedure,
25proceeding, publication, notice, consent, approval, order, or
26act by the Department or any other officer, Department, agency,

 

 

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1or instrumentality of the State or any political subdivision is
2required for the Department to enter into a management
3agreement under this Section. This Section contains full and
4complete authority for the Department to approve any contracts
5entered into by a private manager with a vendor providing
6goods, services, or both goods and services to the private
7manager under the terms of the management agreement, including
8subcontractors of such vendors.
9    Upon receipt of a written request from the Chief
10Procurement Officer, the Department shall provide to the Chief
11Procurement Officer a complete and un-redacted copy of the
12management agreement or any contract that is subject to the
13Department's approval authority under this subsection (o). The
14Department shall provide a copy of the agreement or contract to
15the Chief Procurement Officer in the time specified by the
16Chief Procurement Officer in his or her written request, but no
17later than 5 business days after the request is received by the
18Department. The Chief Procurement Officer must retain any
19portions of the management agreement or of any contract
20designated by the Department as confidential, proprietary, or
21trade secret information in complete confidence pursuant to
22subsection (g) of Section 7 of the Freedom of Information Act.
23The Department shall also provide the Chief Procurement Officer
24with reasonable advance written notice of any contract that is
25pending Department approval.
26    Notwithstanding any other provision of this Section to the

 

 

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1contrary, the Chief Procurement Officer shall adopt
2administrative rules, including emergency rules, to establish
3a procurement process to select a successor private manager if
4a private management agreement has been terminated. The
5selection process shall at a minimum take into account the
6criteria set forth in items (1) through (4) of subsection (e)
7of this Section and may include provisions consistent with
8subsections (f), (g), (h), and (i) of this Section. The Chief
9Procurement Officer shall also implement and administer the
10adopted selection process upon the termination of a private
11management agreement. The Department, after the Chief
12Procurement Officer certifies that the procurement process has
13been followed in accordance with the rules adopted under this
14subsection (o), shall select a final offeror as the private
15manager and sign the management agreement with the private
16manager.
17    Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and
1821.8, the Department shall distribute all proceeds of lottery
19tickets and shares sold in the following priority and manner:
20        (1) The payment of prizes and retailer bonuses.
21        (2) The payment of costs incurred in the operation and
22    administration of the Lottery, including the payment of
23    sums due to the private manager under the management
24    agreement with the Department.
25        (3) On the last day of each month or as soon thereafter
26    as possible, the State Comptroller shall direct and the

 

 

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1    State Treasurer shall transfer from the Lottery Fund to the
2    Common School Fund an amount that is equal to the proceeds
3    transferred in the corresponding month of fiscal year 2009,
4    as adjusted for inflation, to the Common School Fund.
5        (4) On or before the last day of each fiscal year,
6    deposit any remaining proceeds, subject to payments under
7    items (1), (2), and (3) into the Capital Projects Fund each
8    fiscal year.
9    (p) The Department shall be subject to the following
10reporting and information request requirements:
11        (1) the Department shall submit written quarterly
12    reports to the Governor and the General Assembly on the
13    activities and actions of the private manager selected
14    under this Section;
15        (2) upon request of the Chief Procurement Officer, the
16    Department shall promptly produce information related to
17    the procurement activities of the Department and the
18    private manager requested by the Chief Procurement
19    Officer; the Chief Procurement Officer must retain
20    confidential, proprietary, or trade secret information
21    designated by the Department in complete confidence
22    pursuant to subsection (g) of Section 7 of the Freedom of
23    Information Act; and
24        (3) at least 30 days prior to the beginning of the
25    Department's fiscal year, the Department shall prepare an
26    annual written report on the activities of the private

 

 

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1    manager selected under this Section and deliver that report
2    to the Governor and General Assembly.
3(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
4eff. 12-23-09; 97-464, eff. 8-19-11.)
 
5    Section 90-10. The Department of Revenue Law of the Civil
6Administrative Code of Illinois is amended by changing Section
72505-305 as follows:
 
8    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
9    Sec. 2505-305. Investigators.
10    (a) The Department has the power to appoint investigators
11to conduct all investigations, searches, seizures, arrests,
12and other duties imposed under the provisions of any law
13administered by the Department. Except as provided in
14subsection (c), these investigators have and may exercise all
15the powers of peace officers solely for the purpose of
16enforcing taxing measures administered by the Department.
17    (b) The Director must authorize to each investigator
18employed under this Section and to any other employee of the
19Department exercising the powers of a peace officer a distinct
20badge that, on its face, (i) clearly states that the badge is
21authorized by the Department and (ii) contains a unique
22identifying number. No other badge shall be authorized by the
23Department.
24    (c) The Department may enter into agreements with the

 

 

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1Illinois Gaming Board providing that investigators appointed
2under this Section shall exercise the peace officer powers set
3forth in paragraph (20.6) of subsection (c) of Section 5 of the
4Illinois Riverboat Gambling Act.
5(Source: P.A. 96-37, eff. 7-13-09.)
 
6    Section 90-12. The Illinois State Auditing Act is amended
7by changing Section 3-1 as follows:
 
8    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
9    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
10General has jurisdiction over all State agencies to make post
11audits and investigations authorized by or under this Act or
12the Constitution.
13    The Auditor General has jurisdiction over local government
14agencies and private agencies only:
15        (a) to make such post audits authorized by or under
16    this Act as are necessary and incidental to a post audit of
17    a State agency or of a program administered by a State
18    agency involving public funds of the State, but this
19    jurisdiction does not include any authority to review local
20    governmental agencies in the obligation, receipt,
21    expenditure or use of public funds of the State that are
22    granted without limitation or condition imposed by law,
23    other than the general limitation that such funds be used
24    for public purposes;

 

 

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

 

 

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

 

 

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1incorporated town that received the distributions.
2    The Auditor General must conduct an audit of the Health
3Facilities and Services Review Board pursuant to Section 19.5
4of the Illinois Health Facilities Planning Act.
5    The Auditor General must conduct an audit of the Chicago
6Casino Development Authority pursuant to Section 1-60 of the
7Chicago Casino Development Authority Act.
8    The Auditor General of the State of Illinois shall annually
9conduct or cause to be conducted a financial and compliance
10audit of the books and records of any county water commission
11organized pursuant to the Water Commission Act of 1985 and
12shall file a copy of the report of that audit with the Governor
13and the Legislative Audit Commission. The filed audit shall be
14open to the public for inspection. The cost of the audit shall
15be charged to the county water commission in accordance with
16Section 6z-27 of the State Finance Act. The county water
17commission shall make available to the Auditor General its
18books and records and any other documentation, whether in the
19possession of its trustees or other parties, necessary to
20conduct the audit required. These audit requirements apply only
21through July 1, 2007.
22    The Auditor General must conduct audits of the Rend Lake
23Conservancy District as provided in Section 25.5 of the River
24Conservancy Districts Act.
25    The Auditor General must conduct financial audits of the
26Southeastern Illinois Economic Development Authority as

 

 

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1provided in Section 70 of the Southeastern Illinois Economic
2Development Authority Act.
3    The Auditor General shall conduct a compliance audit in
4accordance with subsections (d) and (f) of Section 30 of the
5Innovation Development and Economy Act.
6(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
796-939, eff. 6-24-10.)
 
8    Section 90-15. The State Finance Act is amended by adding
9Sections 5.809, 5.810, 5.811, 5.812, 5.813, 6z-93, and 6z-94
10and by changing Sections 6z-32, 6z-77, and 6z-95 as follows:
 
11    (30 ILCS 105/5.809 new)
12    Sec. 5.809. The State and County Fair Assistance Fund.
 
13    (30 ILCS 105/5.810 new)
14    Sec. 5.810. The Depressed Communities Economic Development
15Fund.
 
16    (30 ILCS 105/5.811 new)
17    Sec. 5.811. The Gaming Facilities Fee Revenue Fund.
 
18    (30 ILCS 105/5.812 new)
19    Sec. 5.812. The Future of Agriculture Fund.
 
20    (30 ILCS 105/5.813 new)

 

 

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1    Sec. 5.813. The Horse Racing Impact Fee Fund.
 
2    (30 ILCS 105/6z-32)
3    Sec. 6z-32. Partners for Planning and Conservation.
4    (a) The Partners for Conservation Fund (formerly known as
5the Conservation 2000 Fund) and the Partners for Conservation
6Projects Fund (formerly known as the Conservation 2000 Projects
7Fund) are created as special funds in the State Treasury. These
8funds shall be used to establish a comprehensive program to
9protect Illinois' natural resources through cooperative
10partnerships between State government and public and private
11landowners. Moneys in these Funds may be used, subject to
12appropriation, by the Department of Natural Resources,
13Environmental Protection Agency, and the Department of
14Agriculture for purposes relating to natural resource
15protection, planning, recreation, tourism, and compatible
16agricultural and economic development activities. Without
17limiting these general purposes, moneys in these Funds may be
18used, subject to appropriation, for the following specific
19purposes:
20        (1) To foster sustainable agriculture practices and
21    control soil erosion and sedimentation, including grants
22    to Soil and Water Conservation Districts for conservation
23    practice cost-share grants and for personnel, educational,
24    and administrative expenses.
25        (2) To establish and protect a system of ecosystems in

 

 

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

 

 

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1amount equal to 1/10 of the amount set forth below in fiscal
2year 1996 and an amount equal to 1/12 of the amount set forth
3below in each of the other specified fiscal years:
4Fiscal Year Amount
51996$ 3,500,000
61997$ 9,000,000
71998$10,000,000
81999$11,000,000
92000$12,500,000
102001 through 2004$14,000,000
112005 $7,000,000
122006 $11,000,000
132007 $0
142008 through 2021........................ $14,000,000
15    (c) Notwithstanding any other provision of law to the
16contrary and in addition to any other transfers that may be
17provided for by law, on the last day of each month beginning on
18July 31, 2006 and ending on June 30, 2007, or as soon
19thereafter as may be practical, the State Comptroller shall
20direct and the State Treasurer shall transfer $1,000,000 from
21the Open Space Lands Acquisition and Development Fund to the
22Conservation 2000 Fund.
23    (d) There shall be deposited into the Partners for
24Conservation Projects Fund such bond proceeds and other moneys
25as may, from time to time, be provided by law.
26    (e) Revenues deposited into the Fund pursuant to subsection

 

 

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1(b-12) of Section 13 of the Illinois Gambling Act shall be used
2solely for grants to soil and water conservation districts.
3Such revenues shall supplement, and not supplant, other State
4funding for soil and water conservation districts.
5(Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-139,
6eff. 1-1-08.)
 
7    (30 ILCS 105/6z-77)
8    Sec. 6z-77. The Capital Projects Fund.
9    (a) The Capital Projects Fund is created as a special fund
10in the State Treasury. The State Comptroller and State
11Treasurer shall transfer from the Capital Projects Fund to the
12General Revenue Fund $61,294,550 on October 1, 2009,
13$122,589,100 on January 1, 2010, and $61,294,550 on April 1,
142010. Beginning on July 1, 2010, and on July 1 and January 1 of
15each year thereafter, the State Comptroller and State Treasurer
16shall transfer the sum of $122,589,100 from the Capital
17Projects Fund to the General Revenue Fund.
18    (b) Subject to appropriation, the Capital Projects Fund may
19be used only for capital projects and the payment of debt
20service on bonds issued for capital projects. All interest
21earned on moneys in the Fund shall be deposited into the Fund.
22The Fund shall not be subject to administrative charges or
23chargebacks, such as but not limited to those authorized under
24Section 8h.
25    (c) Annually, the Governor's Office of Management and

 

 

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1Budget shall determine if revenues deposited into the Fund in
2the fiscal year are expected to exceed the amount needed in the
3fiscal year for capital projects and the payment of debt
4service on bonds issued for capital projects. If any such
5excess amount exists, then on April 1 or as soon thereafter as
6practical, the Governor's Office of Management and Budget shall
7certify such amount, accompanied by a description of the
8process by which the amount was calculated, to the State
9Comptroller and the State Treasurer. Within 15 days after the
10receipt of the certification required by this subsection (c),
11the State Comptroller and the State Treasurer shall transfer
12that amount from the Capital Projects Fund to the Education
13Assistance Fund, except that the amount transferred to the
14Education Assistance Fund pursuant to this subsection (c) shall
15not exceed the estimated amount of revenues that will be
16deposited into the Fund pursuant to Sections 12 and 13 of the
17Illinois Gambling Act in the fiscal year.
18(Source: P.A. 96-34, eff. 7-13-09.)
 
19    (30 ILCS 105/6z-93 new)
20    Sec. 6z-93. The Gaming Facilities Fee Revenue Fund.
21    (a) The Gaming Facilities Fee Revenue Fund is created as a
22special fund in the State treasury.
23    (b) The revenues in the Fund shall be used, subject to
24appropriation, by the Comptroller for the purpose of (i)
25providing appropriations to the Illinois Gaming Board for the

 

 

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1administration and enforcement of the Illinois Gambling Act and
2(ii) payment of vouchers that are outstanding for more than 60
3days. Whenever practical, the Comptroller must prioritize
4voucher payments for expenses related to medical assistance
5under the Illinois Public Aid Code, the Children's Health
6Insurance Program Act, the Covering ALL KIDS Health Insurance
7Act, and the Senior Citizens and Disabled Persons Property Tax
8Relief and Pharmaceutical Assistance Act.
9    (c) The Fund shall consist of fee revenues received
10pursuant to subsection (e) of Section 1-45 of the Chicago
11Casino Development Authority Act and pursuant to subsections
12(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections
13(c) and (i) of Section 7.6 of the Illinois Gambling Act. All
14interest earned on moneys in the Fund shall be deposited into
15the Fund.
16    (d) The Fund shall not be subject to administrative charges
17or chargebacks, including, but not limited to, those authorized
18under subsection (h) of Section 8 of this Act.
 
19    (30 ILCS 105/6z-94 new)
20    Sec. 6z-94. The Future of Agriculture Fund. There is
21created the Future of Agriculture Fund, a special fund in the
22State treasury. Moneys in the Fund may be used by the
23Department of Agriculture, subject to appropriation, solely
24for grants to (1) county fairs, as defined by Section 2 of the
25Agricultural Fair Act, (2) the Illinois Association FFA, and

 

 

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1(3) University of Illinois Extension 4-H programs. The Future
2of Agriculture Fund is not subject to administrative
3chargebacks, including, but not limited to, those authorized
4under Section 8h of the State Finance Act.
 
5    (30 ILCS 105/6z-95 new)
6    Sec. 6z-95. The Horse Racing Impact Fee Fund. There is
7created the Horse Racing Impact Fee Fund, a special fund in the
8State treasury. Moneys in the Fund shall be distributed by the
9Illinois Racing Board to all organization licensees, as defined
10in the Illinois Horse Racing Act of 1975, on a pro rata basis
11based on the number of live races that are conducted at an
12organization licensee's racetrack in the prior calendar year.
13The Horse Racing Impact Fee Fund is not subject to
14administrative chargebacks, including, but not limited to,
15those authorized under Section 8h of the State Finance Act.
 
16    Section 90-23. The Property Tax Code is amended by adding
17Section 15-144 as follows:
 
18    (35 ILCS 200/15-144 new)
19    Sec. 15-144. Chicago Casino Development Authority. All
20property owned by the Chicago Casino Development Authority is
21exempt. Any property owned by the Chicago Casino Development
22Authority and leased to an entity that is not exempt shall lose
23its exempt status, including all property that is leased to a

 

 

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1casino operator licensee pursuant to the Chicago Casino
2Development Authority Act.
 
3    Section 90-25. The Joliet Regional Port District Act is
4amended by changing Section 5.1 as follows:
 
5    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
6    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
7any other provision of this Act, the District may not regulate
8the operation, conduct, or navigation of any riverboat gambling
9casino licensed under the Illinois Riverboat Gambling Act, and
10the District may not license, tax, or otherwise levy any
11assessment of any kind on any riverboat gambling casino
12licensed under the Illinois Riverboat Gambling Act. The General
13Assembly declares that the powers to regulate the operation,
14conduct, and navigation of riverboat gambling casinos and to
15license, tax, and levy assessments upon riverboat gambling
16casinos are exclusive powers of the State of Illinois and the
17Illinois Gaming Board as provided in the Illinois Riverboat
18Gambling Act.
19(Source: P.A. 87-1175.)
 
20    Section 90-30. The Consumer Installment Loan Act is amended
21by changing Section 12.5 as follows:
 
22    (205 ILCS 670/12.5)

 

 

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1    Sec. 12.5. Limited purpose branch.
2    (a) Upon the written approval of the Director, a licensee
3may maintain a limited purpose branch for the sole purpose of
4making loans as permitted by this Act. A limited purpose branch
5may include an automatic loan machine. No other activity shall
6be conducted at the site, including but not limited to,
7accepting payments, servicing the accounts, or collections.
8    (b) The licensee must submit an application for a limited
9purpose branch to the Director on forms prescribed by the
10Director with an application fee of $300. The approval for the
11limited purpose branch must be renewed concurrently with the
12renewal of the licensee's license along with a renewal fee of
13$300 for the limited purpose branch.
14    (c) The books, accounts, records, and files of the limited
15purpose branch's transactions shall be maintained at the
16licensee's licensed location. The licensee shall notify the
17Director of the licensed location at which the books, accounts,
18records, and files shall be maintained.
19    (d) The licensee shall prominently display at the limited
20purpose branch the address and telephone number of the
21licensee's licensed location.
22    (e) No other business shall be conducted at the site of the
23limited purpose branch unless authorized by the Director.
24    (f) The Director shall make and enforce reasonable rules
25for the conduct of a limited purpose branch.
26    (g) A limited purpose branch may not be located within

 

 

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11,000 feet of a facility operated by an inter-track wagering
2licensee or an organization licensee subject to the Illinois
3Horse Racing Act of 1975, on a riverboat or in a casino subject
4to the Illinois Riverboat Gambling Act, or within 1,000 feet of
5the location at which the riverboat docks or within 1,000 feet
6of a casino.
7(Source: P.A. 90-437, eff. 1-1-98.)
 
8    Section 90-35. The Illinois Horse Racing Act of 1975 is
9amended by changing Sections 1.2, 3.12, 6, 9, 15.1, 18, 19, 20,
1024, 26, 27, 28, 28.1, 30, 30.5, 31, 31.1, 32.1, 36, and 40 and
11by adding Sections 34.3 and 56 as follows:
 
12    (230 ILCS 5/1.2)
13    Sec. 1.2. Legislative intent. This Act is intended to
14benefit the people of the State of Illinois by encouraging the
15breeding and production of race horses, assisting economic
16development and promoting Illinois tourism. The General
17Assembly finds and declares it to be the public policy of the
18State of Illinois to:
19    (a) support and enhance Illinois' horse racing industry,
20which is a significant component within the agribusiness
21industry;
22    (b) ensure that Illinois' horse racing industry remains
23competitive with neighboring states;
24    (c) stimulate growth within Illinois' horse racing

 

 

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1industry, thereby encouraging new investment and development
2to produce additional tax revenues and to create additional
3jobs;
4    (d) promote the further growth of tourism;
5    (e) encourage the breeding of thoroughbred and
6standardbred horses in this State; and
7    (f) ensure that public confidence and trust in the
8credibility and integrity of racing operations and the
9regulatory process is maintained.
10(Source: P.A. 91-40, eff. 6-25-99.)
 
11    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
12    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
13system of wagering" means a form of wagering on the outcome of
14horse races in which wagers are made in various denominations
15on a horse or horses and all wagers for each race are pooled
16and held by a licensee for distribution in a manner approved by
17the Board. "Pari-mutuel system of wagering" shall not include
18wagering on historic races. Wagers may be placed via any method
19or at any location authorized under this Act.
20(Source: P.A. 96-762, eff. 8-25-09.)
 
21    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
22    Sec. 6. Restrictions on Board members.
23    (a) No person shall be appointed a member of the Board or
24continue to be a member of the Board if the person or any

 

 

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

 

 

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1    (c) No member of the Board or employee shall engage in any
2political activity. For the purposes of this Section,
3"political" means any activity in support of or in connection
4with any campaign for State or local elective office or any
5political organization, but does not include activities (i)
6relating to the support or opposition of any executive,
7legislative, or administrative action (as those terms are
8defined in Section 2 of the Lobbyist Registration Act), (ii)
9relating to collective bargaining, or (iii) that are otherwise
10in furtherance of the person's official State duties or
11governmental and public service functions.
12    (d) Board members and employees may not engage in
13communications or any activity that may cause or have the
14appearance of causing a conflict of interest. A conflict of
15interest exists if a situation influences or creates the
16appearance that it may influence judgment or performance of
17regulatory duties and responsibilities. This prohibition shall
18extend to any act identified by Board action that, in the
19judgment of the Board, could represent the potential for or the
20appearance of a conflict of interest.
21    (e) Board members and employees may not accept any gift,
22gratuity, service, compensation, travel, lodging, or thing of
23value, with the exception of unsolicited items of an incidental
24nature, from any person, corporation, or entity doing business
25with the Board.
26    (f) A Board member or employee shall not use or attempt to

 

 

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1use his or her official position to secure, or attempt to
2secure, any privilege, advantage, favor, or influence for
3himself or herself or others. No Board member or employee,
4within a period of one year immediately preceding nomination by
5the Governor or employment, shall have been employed or
6received compensation or fees for services from a person or
7entity, or its parent or affiliate, that has engaged in
8business with the Board, a licensee or a licensee under the
9Illinois Gambling Act. In addition, all Board members and
10employees are subject to the restrictions set forth in Section
115-45 of the State Officials and Employees Ethics Act.
12(Source: P.A. 89-16, eff. 5-30-95.)
 
13    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
14    Sec. 9. The Board shall have all powers necessary and
15proper to fully and effectively execute the provisions of this
16Act, including, but not limited to, the following:
17    (a) The Board is vested with jurisdiction and supervision
18over all race meetings in this State, over all licensees doing
19business in this State, over all occupation licensees, and over
20all persons on the facilities of any licensee. Such
21jurisdiction shall include the power to issue licenses to the
22Illinois Department of Agriculture authorizing the pari-mutuel
23system of wagering on harness and Quarter Horse races held (1)
24at the Illinois State Fair in Sangamon County, and (2) at the
25DuQuoin State Fair in Perry County. The jurisdiction of the

 

 

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1Board shall also include the power to issue licenses to county
2fairs which are eligible to receive funds pursuant to the
3Agricultural Fair Act, as now or hereafter amended, or their
4agents, authorizing the pari-mutuel system of wagering on horse
5races conducted at the county fairs receiving such licenses.
6Such licenses shall be governed by subsection (n) of this
7Section.
8    Upon application, the Board shall issue a license to the
9Illinois Department of Agriculture to conduct harness and
10Quarter Horse races at the Illinois State Fair and at the
11DuQuoin State Fairgrounds during the scheduled dates of each
12fair. The Board shall not require and the Department of
13Agriculture shall be exempt from the requirements of Sections
1415.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
15(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
16and 25. The Board and the Department of Agriculture may extend
17any or all of these exemptions to any contractor or agent
18engaged by the Department of Agriculture to conduct its race
19meetings when the Board determines that this would best serve
20the public interest and the interest of horse racing.
21    Notwithstanding any provision of law to the contrary, it
22shall be lawful for any licensee to operate pari-mutuel
23wagering or contract with the Department of Agriculture to
24operate pari-mutuel wagering at the DuQuoin State Fairgrounds
25or for the Department to enter into contracts with a licensee,
26employ its owners, employees or agents and employ such other

 

 

09700SB0747sam001- 93 -LRB097 04468 AEK 59057 a

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

 

 

09700SB0747sam001- 94 -LRB097 04468 AEK 59057 a

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

 

 

09700SB0747sam001- 95 -LRB097 04468 AEK 59057 a

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

 

 

09700SB0747sam001- 96 -LRB097 04468 AEK 59057 a

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

 

 

09700SB0747sam001- 97 -LRB097 04468 AEK 59057 a

1a detriment or impediment to horse racing or wagering. All such
2civil penalties shall be deposited into the Horse Racing Fund.
3    (m) The Board is vested with the power to prescribe a form
4to be used by licensees as an application for employment for
5employees of each licensee.
6    (n) The Board shall have the power to issue a license to
7any county fair, or its agent, authorizing the conduct of the
8pari-mutuel system of wagering. The Board is vested with the
9full power to promulgate reasonable rules, regulations and
10conditions under which all horse race meetings licensed
11pursuant to this subsection shall be held and conducted,
12including rules, regulations and conditions for the conduct of
13the pari-mutuel system of wagering. The rules, regulations and
14conditions shall provide for the prevention of practices
15detrimental to the public interest and for the best interests
16of horse racing, and shall prescribe penalties for violations
17thereof. Any authority granted the Board under this Act shall
18extend to its jurisdiction and supervision over county fairs,
19or their agents, licensed pursuant to this subsection. However,
20the Board may waive any provision of this Act or its rules or
21regulations which would otherwise apply to such county fairs or
22their agents.
23    (o) Whenever the Board is authorized or required by law to
24consider some aspect of criminal history record information for
25the purpose of carrying out its statutory powers and
26responsibilities, then, upon request and payment of fees in

 

 

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1conformance with the requirements of Section 2605-400 of the
2Department of State Police Law (20 ILCS 2605/2605-400), the
3Department of State Police is authorized to furnish, pursuant
4to positive identification, such information contained in
5State files as is necessary to fulfill the request.
6    (p) To insure the convenience, comfort, and wagering
7accessibility of race track patrons, to provide for the
8maximization of State revenue, and to generate increases in
9purse allotments to the horsemen, the Board shall require any
10licensee to staff the pari-mutuel department with adequate
11personnel.
12(Source: P.A. 91-239, eff. 1-1-00.)
 
13    (230 ILCS 5/15.1)  (from Ch. 8, par. 37-15.1)
14    Sec. 15.1. Upon collection of the fee accompanying the
15application for an occupation license, the Board shall be
16authorized to make daily temporary deposits of the fees, for a
17period not to exceed 7 days, with the horsemen's bookkeeper at
18a race meeting. The horsemen's bookkeeper shall issue a check,
19payable to the order of the Illinois Racing Board, for monies
20deposited under this Section within 24 hours of receipt of the
21monies. Provided however, upon the issuance of the check by the
22horsemen's bookkeeper the check shall be deposited into the
23Horse Racing Fund in the State Treasury in accordance with the
24provisions of the "State Officers and Employees Money
25Disposition Act", approved June 9, 1911, as amended.

 

 

09700SB0747sam001- 99 -LRB097 04468 AEK 59057 a

1(Source: P.A. 84-432.)
 
2    (230 ILCS 5/18)  (from Ch. 8, par. 37-18)
3    Sec. 18. (a) Together with its application, each applicant
4for racing dates shall deliver to the Board a certified check
5or bank draft payable to the order of the Board for $1,000. In
6the event the applicant applies for racing dates in 2 or 3
7successive calendar years as provided in subsection (b) of
8Section 21, the fee shall be $2,000. Filing fees shall not be
9refunded in the event the application is denied. All filing
10fees shall be deposited into the Horse Racing Fund.
11    (b) In addition to the filing fee of $1000 and the fees
12provided in subsection (j) of Section 20, each organization
13licensee shall pay a license fee of $100 for each racing
14program on which its daily pari-mutuel handle is $400,000 or
15more but less than $700,000, and a license fee of $200 for each
16racing program on which its daily pari-mutuel handle is
17$700,000 or more. The additional fees required to be paid under
18this Section by this amendatory Act of 1982 shall be remitted
19by the organization licensee to the Illinois Racing Board with
20each day's graduated privilege tax or pari-mutuel tax and
21breakage as provided under Section 27.
22    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
23Municipal Code," approved May 29, 1961, as now or hereafter
24amended, shall not apply to any license under this Act.
25(Source: P.A. 91-40, eff. 6-25-99.)
 

 

 

09700SB0747sam001- 100 -LRB097 04468 AEK 59057 a

1    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
2    Sec. 19. (a) No organization license may be granted to
3conduct a horse race meeting:
4        (1) except as provided in subsection (c) of Section 21
5    of this Act, to any person at any place within 35 miles of
6    any other place licensed by the Board to hold a race
7    meeting on the same date during the same hours, the mileage
8    measurement used in this subsection (a) shall be certified
9    to the Board by the Bureau of Systems and Services in the
10    Illinois Department of Transportation as the most commonly
11    used public way of vehicular travel;
12        (2) to any person in default in the payment of any
13    obligation or debt due the State under this Act, provided
14    no applicant shall be deemed in default in the payment of
15    any obligation or debt due to the State under this Act as
16    long as there is pending a hearing of any kind relevant to
17    such matter;
18        (3) to any person who has been convicted of the
19    violation of any law of the United States or any State law
20    which provided as all or part of its penalty imprisonment
21    in any penal institution; to any person against whom there
22    is pending a Federal or State criminal charge; to any
23    person who is or has been connected with or engaged in the
24    operation of any illegal business; to any person who does
25    not enjoy a general reputation in his community of being an

 

 

09700SB0747sam001- 101 -LRB097 04468 AEK 59057 a

1    honest, upright, law-abiding person; provided that none of
2    the matters set forth in this subparagraph (3) shall make
3    any person ineligible to be granted an organization license
4    if the Board determines, based on circumstances of any such
5    case, that the granting of a license would not be
6    detrimental to the interests of horse racing and of the
7    public;
8        (4) to any person who does not at the time of
9    application for the organization license own or have a
10    contract or lease for the possession of a finished race
11    track suitable for the type of racing intended to be held
12    by the applicant and for the accommodation of the public.
13    (b) (Blank) Horse racing on Sunday shall be prohibited
14unless authorized by ordinance or referendum of the
15municipality in which a race track or any of its appurtenances
16or facilities are located, or utilized.
17    (c) If any person is ineligible to receive an organization
18license because of any of the matters set forth in subsection
19(a) (2) or subsection (a) (3) of this Section, any other or
20separate person that either (i) controls, directly or
21indirectly, such ineligible person or (ii) is controlled,
22directly or indirectly, by such ineligible person or by a
23person which controls, directly or indirectly, such ineligible
24person shall also be ineligible.
25(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 

 

 

09700SB0747sam001- 102 -LRB097 04468 AEK 59057 a

1    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
2    Sec. 20. (a) Any person desiring to conduct a horse race
3meeting may apply to the Board for an organization license. The
4application shall be made on a form prescribed and furnished by
5the Board. The application shall specify:
6        (1) the dates on which it intends to conduct the horse
7    race meeting, which dates shall be provided under Section
8    21;
9        (2) the hours of each racing day between which it
10    intends to hold or conduct horse racing at such meeting;
11        (3) the location where it proposes to conduct the
12    meeting; and
13        (4) any other information the Board may reasonably
14    require.
15    (b) A separate application for an organization license
16shall be filed for each horse race meeting which such person
17proposes to hold. Any such application, if made by an
18individual, or by any individual as trustee, shall be signed
19and verified under oath by such individual. If made by
20individuals or a partnership, it shall be signed and verified
21under oath by at least 2 of such individuals or members of such
22partnership as the case may be. If made by an association,
23corporation, corporate trustee or any other entity, it shall be
24signed by the president and attested by the secretary or
25assistant secretary under the seal of such association, trust
26or corporation if it has a seal, and shall also be verified

 

 

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

 

 

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1such meeting, the Board shall announce the award of the racing
2meets, live racing schedule, and designation of host track to
3the applicants and its approval or disapproval of each
4application. No announcement shall be considered binding until
5a formal order is executed by the Board, which shall be
6executed no later than October 15 of that prior year. Absent
7the agreement of the affected organization licensees, the Board
8shall not grant overlapping race meetings to 2 or more tracks
9that are within 100 miles of each other to conduct the
10thoroughbred racing.
11    (e-1) In awarding standardbred racing dates for calendar
12year 2012 and thereafter, the Board shall award at least 310
13racing days, and each organization licensee shall average at
14least 12 races for each racing day awarded. The Board shall
15have the discretion to allocate those racing days among
16organization licensees requesting standardbred race dates.
17Once awarded by the Board, organization licensees awarded
18standardbred dates shall run at least 3,500 races in total
19during that calendar year.
20    (e-2) For each calendar year for which an organization
21licensee that is receiving money from the Horse Racing Impact
22Fee Fund requests a number of live standardbred racing days
23under its organization license that is less than the number of
24days of live racing awarded in 2009 for its race track
25facility, the organization licensee may not receive any amount
26from the Horse Racing Impact Fee Fund for the calendar year of

 

 

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1such requested racing days. The number of days of live racing
2may be adjusted, on a year-by-year basis, because of weather or
3unsafe track conditions due to acts of God or an agreement
4between the organization licensee and the association
5representing the largest number of owners, trainers, or
6standardbred drivers who race horses at that organization
7licensee's racing meeting.
8    (e-3) The Board may waive the requirements of subsections
9(e-1) and (e-3) if it finds that it is in the best interest of
10the public and the sport of horse racing to conduct fewer races
11or days of live racing after considering all relevant factors,
12including, but not limited to, available local horse
13population, anticipated field size, and sufficient purse
14levels.
15    (e-5) In reviewing an application for the purpose of
16granting an organization license consistent with the best
17interests of the public and the sport of horse racing, the
18Board shall consider:
19        (1) the character, reputation, experience, and
20    financial integrity of the applicant and of any other
21    separate person that either:
22            (i) controls the applicant, directly or
23        indirectly, or
24            (ii) is controlled, directly or indirectly, by
25        that applicant or by a person who controls, directly or
26        indirectly, that applicant;

 

 

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

 

 

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1apply to administrative procedures of the Board under this Act
2for the granting of an organization license, except that (1)
3notwithstanding the provisions of subsection (b) of Section
410-40 of the Illinois Administrative Procedure Act regarding
5cross-examination, the Board may prescribe rules limiting the
6right of an applicant or participant in any proceeding to award
7an organization license to conduct cross-examination of
8witnesses at that proceeding where that cross-examination
9would unduly obstruct the timely award of an organization
10license under subsection (e) of Section 20 of this Act; (2) the
11provisions of Section 10-45 of the Illinois Administrative
12Procedure Act regarding proposals for decision are excluded
13under this Act; (3) notwithstanding the provisions of
14subsection (a) of Section 10-60 of the Illinois Administrative
15Procedure Act regarding ex parte communications, the Board may
16prescribe rules allowing ex parte communications with
17applicants or participants in a proceeding to award an
18organization license where conducting those communications
19would be in the best interest of racing, provided all those
20communications are made part of the record of that proceeding
21pursuant to subsection (c) of Section 10-60 of the Illinois
22Administrative Procedure Act; (4) the provisions of Section 14a
23of this Act and the rules of the Board promulgated under that
24Section shall apply instead of the provisions of Article 10 of
25the Illinois Administrative Procedure Act regarding
26administrative law judges; and (5) the provisions of subsection

 

 

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

 

 

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

 

 

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1        (2) pay to the Board an additional amount equal to $110
2    for each racing date awarded; and
3        (3) file with the Board the bonds required in Sections
4    21 and 25 at least 20 days prior to the first day of each
5    race meeting.
6Upon compliance with the provisions of paragraphs (1), (2), and
7(3) of this subsection (h), the applicant shall be issued an
8organization license.
9    If any applicant fails to comply with this Section or fails
10to pay the organization license fees herein provided, no
11organization license shall be issued to such applicant.
12(Source: P.A. 97-333, eff. 8-12-11.)
 
13    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
14    Sec. 24. (a) No license shall be issued to or held by an
15organization licensee unless all of its officers, directors,
16and holders of ownership interests of at least 5% are first
17approved by the Board. The Board shall not give approval of an
18organization license application to any person who has been
19convicted of or is under an indictment for a crime of moral
20turpitude or has violated any provision of the racing law of
21this State or any rules of the Board.
22    (b) An organization licensee must notify the Board within
2310 days of any change in the holders of a direct or indirect
24interest in the ownership of the organization licensee. The
25Board may, after hearing, revoke the organization license of

 

 

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1any person who registers on its books or knowingly permits a
2direct or indirect interest in the ownership of that person
3without notifying the Board of the name of the holder in
4interest within this period.
5    (c) In addition to the provisions of subsection (a) of this
6Section, no person shall be granted an organization license if
7any public official of the State or member of his or her family
8holds any ownership or financial interest, directly or
9indirectly, in the person.
10    (d) No person which has been granted an organization
11license to hold a race meeting shall give to any public
12official or member of his family, directly or indirectly, for
13or without consideration, any interest in the person. The Board
14shall, after hearing, revoke the organization license granted
15to a person which has violated this subsection.
16    (e) Any person or business entity that holds a license or
17is an applicant for a license under the Illinois Horse Racing
18Act, and any affiliated entity or affiliated person of such
19business entity, are prohibited from making any contributions
20to any political committees or campaigns established to promote
21the candidacy of any officeholder(s) or any other declared
22candidate for any office in Illinois. For licensees, this
23prohibition shall be effective for a period of 2 years
24following the expiration, termination or revocation of a
25license. For applicants who do not receive a license, this
26prohibition shall be in place from the time applications are

 

 

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1solicited until the application has been denied or the
2license(s) at issue have been awarded and any related protests
3or legal actions have been completed. For purposes of this
4section, the definitions of "business entity," "affiliated
5person", and "affiliated entity" set forth in Section 50-37 of
6the Illinois Procurement Code shall apply. (Blank).
7    Any person or entity that makes a prohibited political
8contribution is subject to a fine of up to $200,000 per
9violation and any other action deemed appropriate by the
10Illinois Racing Board.
11    (f) No organization licensee or concessionaire or officer,
12director or holder or controller of 5% or more legal or
13beneficial interest in any organization licensee or concession
14shall make any sort of gift or contribution that is prohibited
15under Article 10 of the State Officials and Employees Ethics
16Act of any kind or pay or give any money or other thing of value
17to any person who is a public official, or a candidate or
18nominee for public office if that payment or gift is prohibited
19under Article 10 of the State Officials and Employees Ethics
20Act.
21(Source: P.A. 89-16, eff. 5-30-95.)
 
22    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
23    Sec. 26. Wagering.
24    (a) Any licensee may conduct and supervise the pari-mutuel
25system of wagering, as defined in Section 3.12 of this Act, on

 

 

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1horse races conducted by an Illinois organization licensee or
2conducted at a racetrack located in another state or country
3and televised in Illinois in accordance with subsection (g) of
4Section 26 of this Act. Subject to the prior consent of the
5Board, licensees may supplement any pari-mutuel pool in order
6to guarantee a minimum distribution. Such pari-mutuel method of
7wagering shall not, under any circumstances if conducted under
8the provisions of this Act, be held or construed to be
9unlawful, other statutes of this State to the contrary
10notwithstanding. Subject to rules for advance wagering
11promulgated by the Board, any licensee may accept wagers in
12advance of the day of the race wagered upon occurs.
13    (b) Except for those gaming activities for which a license
14is obtained and authorized under the Illinois Lottery Act, the
15Charitable Games Act, the Raffles Act, or the Illinois Gambling
16Act, no No other method of betting, pool making, wagering or
17gambling shall be used or permitted by the licensee. Each
18licensee may retain, subject to the payment of all applicable
19taxes and purses, an amount not to exceed 17% of all money
20wagered under subsection (a) of this Section, except as may
21otherwise be permitted under this Act.
22    (b-5) An individual may place a wager under the pari-mutuel
23system from any licensed location authorized under this Act
24provided that wager is electronically recorded in the manner
25described in Section 3.12 of this Act. Any wager made
26electronically by an individual while physically on the

 

 

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1premises of a licensee shall be deemed to have been made at the
2premises of that licensee.
3    (c) Until January 1, 2000, the sum held by any licensee for
4payment of outstanding pari-mutuel tickets, if unclaimed prior
5to December 31 of the next year, shall be retained by the
6licensee for payment of such tickets until that date. Within 10
7days thereafter, the balance of such sum remaining unclaimed,
8less any uncashed supplements contributed by such licensee for
9the purpose of guaranteeing minimum distributions of any
10pari-mutuel pool, shall be paid to the Illinois Veterans'
11Rehabilitation Fund of the State treasury, except as provided
12in subsection (g) of Section 27 of this Act.
13    (c-5) Beginning January 1, 2000, the sum held by any
14licensee for payment of outstanding pari-mutuel tickets, if
15unclaimed prior to December 31 of the next year, shall be
16retained by the licensee for payment of such tickets until that
17date. Within 10 days thereafter, the balance of such sum
18remaining unclaimed, less any uncashed supplements contributed
19by such licensee for the purpose of guaranteeing minimum
20distributions of any pari-mutuel pool, shall be evenly
21distributed to the purse account of the organization licensee
22and the organization licensee.
23    (d) A pari-mutuel ticket shall be honored until December 31
24of the next calendar year, and the licensee shall pay the same
25and may charge the amount thereof against unpaid money
26similarly accumulated on account of pari-mutuel tickets not

 

 

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1presented for payment.
2    (e) No licensee shall knowingly permit any minor, other
3than an employee of such licensee or an owner, trainer, jockey,
4driver, or employee thereof, to be admitted during a racing
5program unless accompanied by a parent or guardian, or any
6minor to be a patron of the pari-mutuel system of wagering
7conducted or supervised by it. The admission of any
8unaccompanied minor, other than an employee of the licensee or
9an owner, trainer, jockey, driver, or employee thereof at a
10race track is a Class C misdemeanor.
11    (f) Notwithstanding the other provisions of this Act, an
12organization licensee may contract with an entity in another
13state or country to permit any legal wagering entity in another
14state or country to accept wagers solely within such other
15state or country on races conducted by the organization
16licensee in this State. Beginning January 1, 2000, these wagers
17shall not be subject to State taxation. Until January 1, 2000,
18when the out-of-State entity conducts a pari-mutuel pool
19separate from the organization licensee, a privilege tax equal
20to 7 1/2% of all monies received by the organization licensee
21from entities in other states or countries pursuant to such
22contracts is imposed on the organization licensee, and such
23privilege tax shall be remitted to the Department of Revenue
24within 48 hours of receipt of the moneys from the simulcast.
25When the out-of-State entity conducts a combined pari-mutuel
26pool with the organization licensee, the tax shall be 10% of

 

 

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1all monies received by the organization licensee with 25% of
2the receipts from this 10% tax to be distributed to the county
3in which the race was conducted.
4    An organization licensee may permit one or more of its
5races to be utilized for pari-mutuel wagering at one or more
6locations in other states and may transmit audio and visual
7signals of races the organization licensee conducts to one or
8more locations outside the State or country and may also permit
9pari-mutuel pools in other states or countries to be combined
10with its gross or net wagering pools or with wagering pools
11established by other states.
12    (g) A host track may accept interstate simulcast wagers on
13horse races conducted in other states or countries and shall
14control the number of signals and types of breeds of racing in
15its simulcast program, subject to the disapproval of the Board.
16The Board may prohibit a simulcast program only if it finds
17that the simulcast program is clearly adverse to the integrity
18of racing. The host track simulcast program shall include the
19signal of live racing of all organization licensees. All
20non-host licensees and advance deposit wagering licensees
21shall carry the signal of and accept wagers on live racing of
22all organization licensees. Advance deposit wagering licensees
23shall not be permitted to accept out-of-state wagers on any
24Illinois signal provided pursuant to this Section without the
25approval and consent of the organization licensee providing the
26signal. Non-host licensees may carry the host track simulcast

 

 

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

 

 

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1subsection (g) pertains to wagers placed from within Illinois.
2Advance deposit wagering licensees may place advance deposit
3wagering terminals at wagering facilities as a convenience to
4customers. The advance deposit wagering licensee shall not
5charge or collect any fee from purses for the placement of the
6advance deposit wagering terminals. The costs and expenses of
7the host track and non-host licensees associated with
8interstate simulcast wagering, other than the interstate
9commission fee, shall be borne by the host track and all
10non-host licensees incurring these costs. The interstate
11commission fee shall not exceed 5% of Illinois handle on the
12interstate simulcast race or races without prior approval of
13the Board. The Board shall promulgate rules under which it may
14permit interstate commission fees in excess of 5%. The
15interstate commission fee and other fees charged by the sending
16racetrack, including, but not limited to, satellite decoder
17fees, shall be uniformly applied to the host track and all
18non-host licensees.
19    Notwithstanding any other provision of this Act, for a
20period of 3 years after the effective date of this amendatory
21Act of the 96th General Assembly, an organization licensee may
22maintain a system whereby advance deposit wagering may take
23place or an organization licensee, with the consent of the
24horsemen association representing the largest number of
25owners, trainers, jockeys, or standardbred drivers who race
26horses at that organization licensee's racing meeting, may

 

 

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1contract with another person to carry out a system of advance
2deposit wagering. Such consent may not be unreasonably
3withheld. All advance deposit wagers placed from within
4Illinois must be placed through a Board-approved advance
5deposit wagering licensee; no other entity may accept an
6advance deposit wager from a person within Illinois. All
7advance deposit wagering is subject to any rules adopted by the
8Board. The Board may adopt rules necessary to regulate advance
9deposit wagering through the use of emergency rulemaking in
10accordance with Section 5-45 of the Illinois Administrative
11Procedure Act. The General Assembly finds that the adoption of
12rules to regulate advance deposit wagering is deemed an
13emergency and necessary for the public interest, safety, and
14welfare. An advance deposit wagering licensee may retain all
15moneys as agreed to by contract with an organization licensee.
16Any moneys retained by the organization licensee from advance
17deposit wagering, not including moneys retained by the advance
18deposit wagering licensee, shall be paid 50% to the
19organization licensee's purse account and 50% to the
20organization licensee. If more than one breed races at the same
21race track facility, then the 50% of the moneys to be paid to
22an organization licensee's purse account shall be allocated
23among all organization licensees' purse accounts operating at
24that race track facility proportionately based on the actual
25number of host days that the Board grants to that breed at that
26race track facility in the current calendar year. To the extent

 

 

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

 

 

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

 

 

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

 

 

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1        track.
2        (6) Notwithstanding any provision in this Act to the
3    contrary, non-host licensees who derive their licenses
4    from a track located in a county with a population in
5    excess of 230,000 and that borders the Mississippi River
6    may receive supplemental interstate simulcast races at all
7    times subject to Board approval, which shall be withheld
8    only upon a finding that a supplemental interstate
9    simulcast is clearly adverse to the integrity of racing.
10        (7) Notwithstanding any provision of this Act to the
11    contrary, after payment of all applicable State and local
12    taxes and interstate commission fees, non-host licensees
13    who derive their licenses from a track located in a county
14    with a population in excess of 230,000 and that borders the
15    Mississippi River shall retain 50% of the retention from
16    interstate simulcast wagers and shall pay 50% to purses at
17    the track from which the non-host licensee derives its
18    license as follows:
19            (A) Between January 1 and the third Friday in
20        February, inclusive, if no live thoroughbred racing is
21        occurring in Illinois during this period, when the
22        interstate simulcast is a standardbred race, the purse
23        share to its standardbred purse account;
24            (B) Between January 1 and the third Friday in
25        February, inclusive, if no live thoroughbred racing is
26        occurring in Illinois during this period, and the

 

 

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1        interstate simulcast is a thoroughbred race, the purse
2        share to its interstate simulcast purse pool to be
3        distributed under paragraph (10) of this subsection
4        (g);
5            (C) Between January 1 and the third Friday in
6        February, inclusive, if live thoroughbred racing is
7        occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
8        the purse share from wagers made during this time
9        period to its thoroughbred purse account and between
10        6:30 p.m. and 6:30 a.m. the purse share from wagers
11        made during this time period to its standardbred purse
12        accounts;
13            (D) Between the third Saturday in February and
14        December 31, when the interstate simulcast occurs
15        between the hours of 6:30 a.m. and 6:30 p.m., the purse
16        share to its thoroughbred purse account;
17            (E) Between the third Saturday in February and
18        December 31, when the interstate simulcast occurs
19        between the hours of 6:30 p.m. and 6:30 a.m., the purse
20        share to its standardbred purse account.
21        (7.1) Notwithstanding any other provision of this Act
22    to the contrary, if no standardbred racing is conducted at
23    a racetrack located in Madison County during any calendar
24    year beginning on or after January 1, 2002, all moneys
25    derived by that racetrack from simulcast wagering and
26    inter-track wagering that (1) are to be used for purses and

 

 

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1    (2) are generated between the hours of 6:30 p.m. and 6:30
2    a.m. during that calendar year shall be paid as follows:
3            (A) If the licensee that conducts horse racing at
4        that racetrack requests from the Board at least as many
5        racing dates as were conducted in calendar year 2000,
6        80% shall be paid to its thoroughbred purse account;
7        and
8            (B) Twenty percent shall be deposited into the
9        Illinois Colt Stakes Purse Distribution Fund and shall
10        be paid to purses for standardbred races for Illinois
11        conceived and foaled horses conducted at any county
12        fairgrounds. The moneys deposited into the Fund
13        pursuant to this subparagraph (B) shall be deposited
14        within 2 weeks after the day they were generated, shall
15        be in addition to and not in lieu of any other moneys
16        paid to standardbred purses under this Act, and shall
17        not be commingled with other moneys paid into that
18        Fund. The moneys deposited pursuant to this
19        subparagraph (B) shall be allocated as provided by the
20        Department of Agriculture, with the advice and
21        assistance of the Illinois Standardbred Breeders Fund
22        Advisory Board.
23        (7.2) Notwithstanding any other provision of this Act
24    to the contrary, if no thoroughbred racing is conducted at
25    a racetrack located in Madison County during any calendar
26    year beginning on or after January 1, 2002, all moneys

 

 

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

 

 

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1        not be commingled with other moneys deposited into that
2        Fund.
3        (7.3) If no live standardbred racing is conducted at a
4    racetrack located in Madison County in calendar year 2000
5    or 2001, an organization licensee who is licensed to
6    conduct horse racing at that racetrack shall, before
7    January 1, 2002, pay all moneys derived from simulcast
8    wagering and inter-track wagering in calendar years 2000
9    and 2001 and paid into the licensee's standardbred purse
10    account as follows:
11            (A) Eighty percent to that licensee's thoroughbred
12        purse account to be used for thoroughbred purses; and
13            (B) Twenty percent to the Illinois Colt Stakes
14        Purse Distribution Fund.
15        Failure to make the payment to the Illinois Colt Stakes
16    Purse Distribution Fund before January 1, 2002 shall result
17    in the immediate revocation of the licensee's organization
18    license, inter-track wagering license, and inter-track
19    wagering location license.
20        Moneys paid into the Illinois Colt Stakes Purse
21    Distribution Fund pursuant to this paragraph (7.3) shall be
22    paid to purses for standardbred races for Illinois
23    conceived and foaled horses conducted at any county
24    fairgrounds. Moneys paid into the Illinois Colt Stakes
25    Purse Distribution Fund pursuant to this paragraph (7.3)
26    shall be used as determined by the Department of

 

 

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1    Agriculture, with the advice and assistance of the Illinois
2    Standardbred Breeders Fund Advisory Board, shall be in
3    addition to and not in lieu of any other moneys paid to
4    standardbred purses under this Act, and shall not be
5    commingled with any other moneys paid into that Fund.
6        (7.4) If live standardbred racing is conducted at a
7    racetrack located in Madison County at any time in calendar
8    year 2001 before the payment required under paragraph (7.3)
9    has been made, the organization licensee who is licensed to
10    conduct racing at that racetrack shall pay all moneys
11    derived by that racetrack from simulcast wagering and
12    inter-track wagering during calendar years 2000 and 2001
13    that (1) are to be used for purses and (2) are generated
14    between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
15    2001 to the standardbred purse account at that racetrack to
16    be used for standardbred purses.
17        (8) Notwithstanding any provision in this Act to the
18    contrary, an organization licensee from a track located in
19    a county with a population in excess of 230,000 and that
20    borders the Mississippi River and its affiliated non-host
21    licensees shall not be entitled to share in any retention
22    generated on racing, inter-track wagering, or simulcast
23    wagering at any other Illinois wagering facility.
24        (8.1) Notwithstanding any provisions in this Act to the
25    contrary, if 2 organization licensees are conducting
26    standardbred race meetings concurrently between the hours

 

 

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1    of 6:30 p.m. and 6:30 a.m., after payment of all applicable
2    State and local taxes and interstate commission fees, the
3    remainder of the amount retained from simulcast wagering
4    otherwise attributable to the host track and to host track
5    purses shall be split daily between the 2 organization
6    licensees and the purses at the tracks of the 2
7    organization licensees, respectively, based on each
8    organization licensee's share of the total live handle for
9    that day, provided that this provision shall not apply to
10    any non-host licensee that derives its license from a track
11    located in a county with a population in excess of 230,000
12    and that borders the Mississippi River.
13        (9) (Blank).
14        (10) (Blank).
15        (11) (Blank).
16        (12) The Board shall have authority to compel all host
17    tracks to receive the simulcast of any or all races
18    conducted at the Springfield or DuQuoin State fairgrounds
19    and include all such races as part of their simulcast
20    programs.
21        (13) Notwithstanding any other provision of this Act,
22    in the event that the total Illinois pari-mutuel handle on
23    Illinois horse races at all wagering facilities in any
24    calendar year is less than 75% of the total Illinois
25    pari-mutuel handle on Illinois horse races at all such
26    wagering facilities for calendar year 1994, then each

 

 

09700SB0747sam001- 130 -LRB097 04468 AEK 59057 a

1    wagering facility that has an annual total Illinois
2    pari-mutuel handle on Illinois horse races that is less
3    than 75% of the total Illinois pari-mutuel handle on
4    Illinois horse races at such wagering facility for calendar
5    year 1994, shall be permitted to receive, from any amount
6    otherwise payable to the purse account at the race track
7    with which the wagering facility is affiliated in the
8    succeeding calendar year, an amount equal to 2% of the
9    differential in total Illinois pari-mutuel handle on
10    Illinois horse races at the wagering facility between that
11    calendar year in question and 1994 provided, however, that
12    a wagering facility shall not be entitled to any such
13    payment until the Board certifies in writing to the
14    wagering facility the amount to which the wagering facility
15    is entitled and a schedule for payment of the amount to the
16    wagering facility, based on: (i) the racing dates awarded
17    to the race track affiliated with the wagering facility
18    during the succeeding year; (ii) the sums available or
19    anticipated to be available in the purse account of the
20    race track affiliated with the wagering facility for purses
21    during the succeeding year; and (iii) the need to ensure
22    reasonable purse levels during the payment period. The
23    Board's certification shall be provided no later than
24    January 31 of the succeeding year. In the event a wagering
25    facility entitled to a payment under this paragraph (13) is
26    affiliated with a race track that maintains purse accounts

 

 

09700SB0747sam001- 131 -LRB097 04468 AEK 59057 a

1    for both standardbred and thoroughbred racing, the amount
2    to be paid to the wagering facility shall be divided
3    between each purse account pro rata, based on the amount of
4    Illinois handle on Illinois standardbred and thoroughbred
5    racing respectively at the wagering facility during the
6    previous calendar year. Annually, the General Assembly
7    shall appropriate sufficient funds from the General
8    Revenue Fund to the Department of Agriculture for payment
9    into the thoroughbred and standardbred horse racing purse
10    accounts at Illinois pari-mutuel tracks. The amount paid to
11    each purse account shall be the amount certified by the
12    Illinois Racing Board in January to be transferred from
13    each account to each eligible racing facility in accordance
14    with the provisions of this Section. Beginning in the
15    calendar year in which an organization licensee that is
16    eligible to receive payment under this paragraph (13)
17    begins to receive funds from the Horse Racing Impact Fee
18    Fund, the amount of the payment due to all wagering
19    facilities licensed under that organization licensee under
20    this paragraph (13) shall be the amount certified by the
21    Board in January of that year. An organization licensee and
22    its related wagering facilities shall no longer be able to
23    receive payments under this paragraph (13) beginning in the
24    year subsequent to the first year in which the organization
25    licensee begins to receive funds from the Horse Racing
26    Impact Fee Fund.

 

 

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1    (h) The Board may approve and license the conduct of
2inter-track wagering and simulcast wagering by inter-track
3wagering licensees and inter-track wagering location licensees
4subject to the following terms and conditions:
5        (1) Any person licensed to conduct a race meeting (i)
6    at a track where 60 or more days of racing were conducted
7    during the immediately preceding calendar year or where
8    over the 5 immediately preceding calendar years an average
9    of 30 or more days of racing were conducted annually may be
10    issued an inter-track wagering license; (ii) at a track
11    located in a county that is bounded by the Mississippi
12    River, which has a population of less than 150,000
13    according to the 1990 decennial census, and an average of
14    at least 60 days of racing per year between 1985 and 1993
15    may be issued an inter-track wagering license; or (iii) at
16    a track located in Madison County that conducted at least
17    100 days of live racing during the immediately preceding
18    calendar year may be issued an inter-track wagering
19    license, unless a lesser schedule of live racing is the
20    result of (A) weather, unsafe track conditions, or other
21    acts of God; (B) an agreement between the organization
22    licensee and the associations representing the largest
23    number of owners, trainers, jockeys, or standardbred
24    drivers who race horses at that organization licensee's
25    racing meeting; or (C) a finding by the Board of
26    extraordinary circumstances and that it was in the best

 

 

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1    interest of the public and the sport to conduct fewer than
2    100 days of live racing. Any such person having operating
3    control of the racing facility may also receive up to 6
4    inter-track wagering location licenses. In no event shall
5    more than 6 inter-track wagering locations be established
6    for each eligible race track, except that an eligible race
7    track located in a county that has a population of more
8    than 230,000 and that is bounded by the Mississippi River
9    may establish up to 7 inter-track wagering locations. An
10    application for said license shall be filed with the Board
11    prior to such dates as may be fixed by the Board. With an
12    application for an inter-track wagering location license
13    there shall be delivered to the Board a certified check or
14    bank draft payable to the order of the Board for an amount
15    equal to $500. The application shall be on forms prescribed
16    and furnished by the Board. The application shall comply
17    with all other rules, regulations and conditions imposed by
18    the Board in connection therewith.
19        (2) The Board shall examine the applications with
20    respect to their conformity with this Act and the rules and
21    regulations imposed by the Board. If found to be in
22    compliance with the Act and rules and regulations of the
23    Board, the Board may then issue a license to conduct
24    inter-track wagering and simulcast wagering to such
25    applicant. All such applications shall be acted upon by the
26    Board at a meeting to be held on such date as may be fixed

 

 

09700SB0747sam001- 134 -LRB097 04468 AEK 59057 a

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

 

 

09700SB0747sam001- 135 -LRB097 04468 AEK 59057 a

1    wagering location licensee may accept wagers at the track
2    or location where it is licensed, or as otherwise provided
3    under this Act.
4        (8) Inter-track wagering or simulcast wagering shall
5    not be conducted at any track less than 4 5 miles from a
6    track at which a racing meeting is in progress.
7        (8.1) Inter-track wagering location licensees who
8    derive their licenses from a particular organization
9    licensee shall conduct inter-track wagering and simulcast
10    wagering only at locations which are either within 90 miles
11    of that race track where the particular organization
12    licensee is licensed to conduct racing, or within 135 miles
13    of that race track where the particular organization
14    licensee is licensed to conduct racing in the case of race
15    tracks in counties of less than 400,000 that were operating
16    on or before June 1, 1986. However, inter-track wagering
17    and simulcast wagering shall not be conducted by those
18    licensees at any location within 5 miles of any race track
19    at which a horse race meeting has been licensed in the
20    current year, unless the person having operating control of
21    such race track has given its written consent to such
22    inter-track wagering location licensees, which consent
23    must be filed with the Board at or prior to the time
24    application is made.
25        (8.2) Inter-track wagering or simulcast wagering shall
26    not be conducted by an inter-track wagering location

 

 

09700SB0747sam001- 136 -LRB097 04468 AEK 59057 a

1    licensee at any location within 500 feet of an existing
2    church, an or existing elementary or secondary public
3    school, or an existing elementary or secondary private
4    school registered with or recognized by the State Board of
5    Education school, nor within 500 feet of the residences of
6    more than 50 registered voters without receiving written
7    permission from a majority of the registered voters at such
8    residences. Such written permission statements shall be
9    filed with the Board. The distance of 500 feet shall be
10    measured to the nearest part of any building used for
11    worship services, education programs, residential
12    purposes, or conducting inter-track wagering by an
13    inter-track wagering location licensee, and not to
14    property boundaries. However, inter-track wagering or
15    simulcast wagering may be conducted at a site within 500
16    feet of a church, school or residences of 50 or more
17    registered voters if such church, school or residences have
18    been erected or established, or such voters have been
19    registered, after the Board issues the original
20    inter-track wagering location license at the site in
21    question. Inter-track wagering location licensees may
22    conduct inter-track wagering and simulcast wagering only
23    in areas that are zoned for commercial or manufacturing
24    purposes or in areas for which a special use has been
25    approved by the local zoning authority. However, no license
26    to conduct inter-track wagering and simulcast wagering

 

 

09700SB0747sam001- 137 -LRB097 04468 AEK 59057 a

1    shall be granted by the Board with respect to any
2    inter-track wagering location within the jurisdiction of
3    any local zoning authority which has, by ordinance or by
4    resolution, prohibited the establishment of an inter-track
5    wagering location within its jurisdiction. However,
6    inter-track wagering and simulcast wagering may be
7    conducted at a site if such ordinance or resolution is
8    enacted after the Board licenses the original inter-track
9    wagering location licensee for the site in question.
10        (9) (Blank).
11        (10) An inter-track wagering licensee or an
12    inter-track wagering location licensee may retain, subject
13    to the payment of the privilege taxes and the purses, an
14    amount not to exceed 17% of all money wagered. Each program
15    of racing conducted by each inter-track wagering licensee
16    or inter-track wagering location licensee shall be
17    considered a separate racing day for the purpose of
18    determining the daily handle and computing the privilege
19    tax or pari-mutuel tax on such daily handle as provided in
20    Section 27.
21        (10.1) Except as provided in subsection (g) of Section
22    27 of this Act, inter-track wagering location licensees
23    shall pay 1% of the pari-mutuel handle at each location to
24    the municipality in which such location is situated and 1%
25    of the pari-mutuel handle at each location to the county in
26    which such location is situated. In the event that an

 

 

09700SB0747sam001- 138 -LRB097 04468 AEK 59057 a

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

 

 

09700SB0747sam001- 139 -LRB097 04468 AEK 59057 a

1        be paid to purses shall be paid to purses for
2        thoroughbred races.
3        (11) (A) After payment of the privilege or pari-mutuel
4    tax, any other applicable taxes, and the costs and expenses
5    in connection with the gathering, transmission, and
6    dissemination of all data necessary to the conduct of
7    inter-track wagering, the remainder of the monies retained
8    under either Section 26 or Section 26.2 of this Act by the
9    inter-track wagering licensee on inter-track wagering
10    shall be allocated with 50% to be split between the 2
11    participating licensees and 50% to purses, except that an
12    intertrack wagering licensee that derives its license from
13    a track located in a county with a population in excess of
14    230,000 and that borders the Mississippi River shall not
15    divide any remaining retention with the Illinois
16    organization licensee that provides the race or races, and
17    an intertrack wagering licensee that accepts wagers on
18    races conducted by an organization licensee that conducts a
19    race meet in a county with a population in excess of
20    230,000 and that borders the Mississippi River shall not
21    divide any remaining retention with that organization
22    licensee.
23        (B) From the sums permitted to be retained pursuant to
24    this Act each inter-track wagering location licensee shall
25    pay (i) the privilege or pari-mutuel tax to the State; (ii)
26    4.75% of the pari-mutuel handle on intertrack wagering at

 

 

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

 

 

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

 

 

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1    conducting its wagering. The remainder of the monies
2    retained by the inter-track wagering location licensee
3    shall be allocated 40% to the location licensee and 60% to
4    the organization licensee which provides the Illinois
5    races to the location, except that an intertrack wagering
6    location licensee that derives its license from a track
7    located in a county with a population in excess of 230,000
8    and that borders the Mississippi River shall not divide any
9    remaining retention with the organization licensee that
10    provides the race or races and an intertrack wagering
11    location licensee that accepts wagers on races conducted by
12    an organization licensee that conducts a race meet in a
13    county with a population in excess of 230,000 and that
14    borders the Mississippi River shall not divide any
15    remaining retention with the organization licensee.
16    Notwithstanding the provisions of clauses (ii) and (iv) of
17    this paragraph, in the case of the additional inter-track
18    wagering location licenses authorized under paragraph (1)
19    of this subsection (h) by this amendatory Act of 1991,
20    those licensees shall pay the following amounts as purses:
21    during the first 12 months the licensee is in operation,
22    5.25% of the pari-mutuel handle wagered at the location on
23    races; during the second 12 months, 5.25%; during the third
24    12 months, 5.75%; during the fourth 12 months, 6.25%; and
25    during the fifth 12 months and thereafter, 6.75%. The
26    following amounts shall be retained by the licensee to

 

 

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1    satisfy all costs and expenses of conducting its wagering:
2    during the first 12 months the licensee is in operation,
3    8.25% of the pari-mutuel handle wagered at the location;
4    during the second 12 months, 8.25%; during the third 12
5    months, 7.75%; during the fourth 12 months, 7.25%; and
6    during the fifth 12 months and thereafter, 6.75%. For
7    additional intertrack wagering location licensees
8    authorized under this amendatory Act of 1995, purses for
9    the first 12 months the licensee is in operation shall be
10    5.75% of the pari-mutuel wagered at the location, purses
11    for the second 12 months the licensee is in operation shall
12    be 6.25%, and purses thereafter shall be 6.75%. For
13    additional intertrack location licensees authorized under
14    this amendatory Act of 1995, the licensee shall be allowed
15    to retain to satisfy all costs and expenses: 7.75% of the
16    pari-mutuel handle wagered at the location during its first
17    12 months of operation, 7.25% during its second 12 months
18    of operation, and 6.75% thereafter.
19        (C) There is hereby created the Horse Racing Tax
20    Allocation Fund which shall remain in existence until
21    December 31, 1999. Moneys remaining in the Fund after
22    December 31, 1999 shall be paid into the General Revenue
23    Fund. Until January 1, 2000, all monies paid into the Horse
24    Racing Tax Allocation Fund pursuant to this paragraph (11)
25    by inter-track wagering location licensees located in park
26    districts of 500,000 population or less, or in a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09700SB0747sam001- 154 -LRB097 04468 AEK 59057 a

1    (i) Notwithstanding the other provisions of this Act, the
2conduct of wagering at wagering facilities is authorized on all
3days, except as limited by subsection (b) of Section 19 of this
4Act.
5(Source: P.A. 96-762, eff. 8-25-09.)
 
6    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
7    Sec. 27. (a) In addition to the organization license fee
8provided by this Act, until January 1, 2000, a graduated
9privilege tax is hereby imposed for conducting the pari-mutuel
10system of wagering permitted under this Act. Until January 1,
112000, except as provided in subsection (g) of Section 27 of
12this Act, all of the breakage of each racing day held by any
13licensee in the State shall be paid to the State. Until January
141, 2000, such daily graduated privilege tax shall be paid by
15the licensee from the amount permitted to be retained under
16this Act. Until January 1, 2000, each day's graduated privilege
17tax, breakage, and Horse Racing Tax Allocation funds shall be
18remitted to the Department of Revenue within 48 hours after the
19close of the racing day upon which it is assessed or within
20such other time as the Board prescribes. The privilege tax
21hereby imposed, until January 1, 2000, shall be a flat tax at
22the rate of 2% of the daily pari-mutuel handle except as
23provided in Section 27.1.
24    In addition, every organization licensee, except as
25provided in Section 27.1 of this Act, which conducts multiple

 

 

09700SB0747sam001- 155 -LRB097 04468 AEK 59057 a

1wagering shall pay, until January 1, 2000, as a privilege tax
2on multiple wagers an amount equal to 1.25% of all moneys
3wagered each day on such multiple wagers, plus an additional
4amount equal to 3.5% of the amount wagered each day on any
5other multiple wager which involves a single betting interest
6on 3 or more horses. The licensee shall remit the amount of
7such taxes to the Department of Revenue within 48 hours after
8the close of the racing day on which it is assessed or within
9such other time as the Board prescribes.
10    This subsection (a) shall be inoperative and of no force
11and effect on and after January 1, 2000.
12    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
13at the rate of 1.5% of the daily pari-mutuel handle is imposed
14at all pari-mutuel wagering facilities and on advance deposit
15wagering from a location other than a wagering facility, except
16as otherwise provided for in this subsection (a-5). In addition
17to the pari-mutuel tax imposed on advance deposit wagering
18pursuant to this subsection (a-5), an additional pari-mutuel
19tax at the rate of 0.25% shall be imposed on advance deposit
20wagering, the amount of which shall not exceed $250,000 in each
21calendar year. The additional 0.25% pari-mutuel tax imposed on
22advance deposit wagering by this amendatory Act of the 96th
23General Assembly shall be deposited into the Quarter Horse
24Purse Fund, which shall be created as a non-appropriated trust
25fund administered by the Board for grants to thoroughbred
26organization licensees for payment of purses for quarter horse

 

 

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1races conducted by the organization licensee. Thoroughbred
2organization licensees may petition the Board to conduct
3quarter horse racing and receive purse grants from the Quarter
4Horse Purse Fund. The Board shall have complete discretion in
5distributing the Quarter Horse Purse Fund to the petitioning
6organization licensees. Beginning on the effective date of this
7amendatory Act of the 96th General Assembly and until moneys
8deposited pursuant to Section 54 are distributed and received,
9a pari-mutuel tax at the rate of 0.75% of the daily pari-mutuel
10handle is imposed at a pari-mutuel facility whose license is
11derived from a track located in a county that borders the
12Mississippi River and conducted live racing in the previous
13year. After moneys deposited pursuant to Section 54 are
14distributed and received, a pari-mutuel tax at the rate of 1.5%
15of the daily pari-mutuel handle is imposed at a pari-mutuel
16facility whose license is derived from a track located in a
17county that borders the Mississippi River and conducted live
18racing in the previous year. The pari-mutuel tax imposed by
19this subsection (a-5) shall be remitted to the Department of
20Revenue within 48 hours after the close of the racing day upon
21which it is assessed or within such other time as the Board
22prescribes.
23    (a-10) Beginning on the date when an organization licensee
24begins receiving funds from the Horse Racing Impact Fee Fund,
25the following pari-mutuel tax is imposed upon an organization
26licensee on Illinois races at the licensee's race track:

 

 

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1        1.5% of the pari-mutuel handle at or below the average
2    daily pari-mutuel handle for 2011.
3        2% of the pari-mutuel handle above the average daily
4    pari-mutuel handle for 2011 up to 125% of the average daily
5    pari-mutuel handle for 2011.
6        2.5% of the pari-mutuel handle 125% or more above the
7    average daily pari-mutuel handle for 2011 up to 150% of the
8    average daily pari-mutuel handle for 2011.
9        3% of the pari-mutuel handle 150% or more above the
10    average daily pari-mutuel handle for 2011 up to 175% of the
11    average daily pari-mutuel handle for 2011.
12        3.5% of the pari-mutuel handle 175% or more above the
13    average daily pari-mutuel handle for 2011.
14    The pari-mutuel tax imposed by this subsection (a-10) shall
15be remitted to the Board within 48 hours after the close of the
16racing day upon which it is assessed or within such other time
17as the Board prescribes.
18    (b) On or before December 31, 1999, in the event that any
19organization licensee conducts 2 separate programs of races on
20any day, each such program shall be considered a separate
21racing day for purposes of determining the daily handle and
22computing the privilege tax on such daily handle as provided in
23subsection (a) of this Section.
24    (c) Licensees shall at all times keep accurate books and
25records of all monies wagered on each day of a race meeting and
26of the taxes paid to the Department of Revenue under the

 

 

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1provisions of this Section. The Board or its duly authorized
2representative or representatives shall at all reasonable
3times have access to such records for the purpose of examining
4and checking the same and ascertaining whether the proper
5amount of taxes is being paid as provided. The Board shall
6require verified reports and a statement of the total of all
7monies wagered daily at each wagering facility upon which the
8taxes are assessed and may prescribe forms upon which such
9reports and statement shall be made.
10    (d) Any licensee failing or refusing to pay the amount of
11any tax due under this Section shall be guilty of a business
12offense and upon conviction shall be fined not more than $5,000
13in addition to the amount found due as tax under this Section.
14Each day's violation shall constitute a separate offense. All
15fines paid into Court by a licensee hereunder shall be
16transmitted and paid over by the Clerk of the Court to the
17Board.
18    (e) No other license fee, privilege tax, excise tax, or
19racing fee, except as provided in this Act, shall be assessed
20or collected from any such licensee by the State.
21    (f) No other license fee, privilege tax, excise tax or
22racing fee shall be assessed or collected from any such
23licensee by units of local government except as provided in
24paragraph 10.1 of subsection (h) and subsection (f) of Section
2526 of this Act. However, any municipality that has a Board
26licensed horse race meeting at a race track wholly within its

 

 

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1corporate boundaries or a township that has a Board licensed
2horse race meeting at a race track wholly within the
3unincorporated area of the township may charge a local
4amusement tax not to exceed 10 per admission to such horse
5race meeting by the enactment of an ordinance. However, any
6municipality or county that has a Board licensed inter-track
7wagering location facility wholly within its corporate
8boundaries may each impose an admission fee not to exceed $1.00
9per admission to such inter-track wagering location facility,
10so that a total of not more than $2.00 per admission may be
11imposed. Except as provided in subparagraph (g) of Section 27
12of this Act, the inter-track wagering location licensee shall
13collect any and all such fees and within 48 hours remit the
14fees to the Board, which shall, pursuant to rule, cause the
15fees to be distributed to the county or municipality.
16    (g) Notwithstanding any provision in this Act to the
17contrary, if in any calendar year the total taxes and fees from
18wagering on live racing and from inter-track wagering required
19to be collected from licensees and distributed under this Act
20to all State and local governmental authorities exceeds the
21amount of such taxes and fees distributed to each State and
22local governmental authority to which each State and local
23governmental authority was entitled under this Act for calendar
24year 1994, then the first $11 million of that excess amount
25shall be allocated at the earliest possible date for
26distribution as purse money for the succeeding calendar year.

 

 

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1Upon reaching the 1994 level, and until the excess amount of
2taxes and fees exceeds $11 million, the Board shall direct all
3licensees to cease paying the subject taxes and fees and the
4Board shall direct all licensees to allocate any such excess
5amount for purses as follows:
6        (i) the excess amount shall be initially divided
7    between thoroughbred and standardbred purses based on the
8    thoroughbred's and standardbred's respective percentages
9    of total Illinois live wagering in calendar year 1994;
10        (ii) each thoroughbred and standardbred organization
11    licensee issued an organization licensee in that
12    succeeding allocation year shall be allocated an amount
13    equal to the product of its percentage of total Illinois
14    live thoroughbred or standardbred wagering in calendar
15    year 1994 (the total to be determined based on the sum of
16    1994 on-track wagering for all organization licensees
17    issued organization licenses in both the allocation year
18    and the preceding year) multiplied by the total amount
19    allocated for standardbred or thoroughbred purses,
20    provided that the first $1,500,000 of the amount allocated
21    to standardbred purses under item (i) shall be allocated to
22    the Department of Agriculture to be expended with the
23    assistance and advice of the Illinois Standardbred
24    Breeders Funds Advisory Board for the purposes listed in
25    subsection (g) of Section 31 of this Act, before the amount
26    allocated to standardbred purses under item (i) is

 

 

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1    allocated to standardbred organization licensees in the
2    succeeding allocation year.
3    To the extent the excess amount of taxes and fees to be
4collected and distributed to State and local governmental
5authorities exceeds $11 million, that excess amount shall be
6collected and distributed to State and local authorities as
7provided for under this Act.
8(Source: P.A. 96-762, eff. 8-25-09; 96-1287, eff. 7-26-10.)
 
9    (230 ILCS 5/28)  (from Ch. 8, par. 37-28)
10    Sec. 28. Except as provided in subsection (g) of Section 27
11of this Act, moneys collected shall be distributed according to
12the provisions of this Section 28.
13    (a) Thirty per cent of the total of all monies received by
14the State as privilege taxes shall be paid into the
15Metropolitan Exposition Auditorium and Office Building Fund in
16the State Treasury.
17    (b) In addition, 4.5% of the total of all monies received
18by the State as privilege taxes shall be paid into the State
19treasury into a special Fund to be known as the Metropolitan
20Exposition, Auditorium, and Office Building Fund.
21    (c) Fifty per cent of the total of all monies received by
22the State as privilege taxes under the provisions of this Act
23shall be paid into the Agricultural Premium Fund.
24    (d) Seven per cent of the total of all monies received by
25the State as privilege taxes shall be paid into the Fair and

 

 

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1Exposition Fund in the State treasury; provided, however, that
2when all bonds issued prior to July 1, 1984 by the Metropolitan
3Fair and Exposition Authority shall have been paid or payment
4shall have been provided for upon a refunding of those bonds,
5thereafter 1/12 of $1,665,662 of such monies shall be paid each
6month into the Build Illinois Fund, and the remainder into the
7Fair and Exposition Fund. All excess monies shall be allocated
8to the Department of Agriculture for distribution to county
9fairs for premiums and rehabilitation as set forth in the
10Agricultural Fair Act.
11    (e) The monies provided for in Section 30 shall be paid
12into the Illinois Thoroughbred Breeders Fund.
13    (f) The monies provided for in Section 31 shall be paid
14into the Illinois Standardbred Breeders Fund.
15    (g) Until January 1, 2000, that part representing 1/2 of
16the total breakage in Thoroughbred, Harness, Appaloosa,
17Arabian, and Quarter Horse racing in the State shall be paid
18into the Illinois Race Track Improvement Fund as established in
19Section 32.
20    (h) All other monies received by the Board under this Act
21shall be paid into the Horse Racing Fund General Revenue Fund
22of the State.
23    (i) The salaries of the Board members, secretary, stewards,
24directors of mutuels, veterinarians, representatives,
25accountants, clerks, stenographers, inspectors and other
26employees of the Board, and all expenses of the Board incident

 

 

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1to the administration of this Act, including, but not limited
2to, all expenses and salaries incident to the taking of saliva
3and urine samples in accordance with the rules and regulations
4of the Board shall be paid out of the Agricultural Premium
5Fund.
6    (j) The Agricultural Premium Fund shall also be used:
7        (1) for the expenses of operating the Illinois State
8    Fair and the DuQuoin State Fair, including the payment of
9    prize money or premiums;
10        (2) for the distribution to county fairs, vocational
11    agriculture section fairs, agricultural societies, and
12    agricultural extension clubs in accordance with the
13    Agricultural Fair Act, as amended;
14        (3) for payment of prize monies and premiums awarded
15    and for expenses incurred in connection with the
16    International Livestock Exposition and the Mid-Continent
17    Livestock Exposition held in Illinois, which premiums, and
18    awards must be approved, and paid by the Illinois
19    Department of Agriculture;
20        (4) for personal service of county agricultural
21    advisors and county home advisors;
22        (5) for distribution to agricultural home economic
23    extension councils in accordance with "An Act in relation
24    to additional support and finance for the Agricultural and
25    Home Economic Extension Councils in the several counties in
26    this State and making an appropriation therefor", approved

 

 

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1    July 24, 1967, as amended;
2        (6) for research on equine disease, including a
3    development center therefor;
4        (7) for training scholarships for study on equine
5    diseases to students at the University of Illinois College
6    of Veterinary Medicine;
7        (8) for the rehabilitation, repair and maintenance of
8    the Illinois and DuQuoin State Fair Grounds and the
9    structures and facilities thereon and the construction of
10    permanent improvements on such Fair Grounds, including
11    such structures, facilities and property located on such
12    State Fair Grounds which are under the custody and control
13    of the Department of Agriculture;
14        (9) for the expenses of the Department of Agriculture
15    under Section 5-530 of the Departments of State Government
16    Law (20 ILCS 5/5-530);
17        (10) for the expenses of the Department of Commerce and
18    Economic Opportunity under Sections 605-620, 605-625, and
19    605-630 of the Department of Commerce and Economic
20    Opportunity Law (20 ILCS 605/605-620, 605/605-625, and
21    605/605-630);
22        (11) for remodeling, expanding, and reconstructing
23    facilities destroyed by fire of any Fair and Exposition
24    Authority in counties with a population of 1,000,000 or
25    more inhabitants;
26        (12) for the purpose of assisting in the care and

 

 

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1    general rehabilitation of disabled veterans of any war and
2    their surviving spouses and orphans;
3        (13) for expenses of the Department of State Police for
4    duties performed under this Act;
5        (14) for the Department of Agriculture for soil surveys
6    and soil and water conservation purposes;
7        (15) for the Department of Agriculture for grants to
8    the City of Chicago for conducting the Chicagofest;
9        (16) for the State Comptroller for grants and operating
10    expenses authorized by the Illinois Global Partnership
11    Act.
12    (k) To the extent that monies paid by the Board to the
13Agricultural Premium Fund are in the opinion of the Governor in
14excess of the amount necessary for the purposes herein stated,
15the Governor shall notify the Comptroller and the State
16Treasurer of such fact, who, upon receipt of such notification,
17shall transfer such excess monies from the Agricultural Premium
18Fund to the General Revenue Fund.
19(Source: P.A. 94-91, Sections 55-135 and 90-10, eff. 7-1-05.)
 
20    (230 ILCS 5/28.1)
21    Sec. 28.1. Payments.
22    (a) Beginning on January 1, 2000, moneys collected by the
23Department of Revenue and the Racing Board pursuant to Section
2426 or Section 27 of this Act shall be deposited into the Horse
25Racing Fund, which is hereby created as a special fund in the

 

 

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1State Treasury.
2    (b) Appropriations, as approved by the General Assembly,
3may be made from the Horse Racing Fund to the Board to pay the
4salaries of the Board members, secretary, stewards, directors
5of mutuels, veterinarians, representatives, accountants,
6clerks, stenographers, inspectors and other employees of the
7Board, and all expenses of the Board incident to the
8administration of this Act, including, but not limited to, all
9expenses and salaries incident to the taking of saliva and
10urine samples in accordance with the rules and regulations of
11the Board.
12    (c) Beginning on January 1, 2000, the Board shall transfer
13the remainder of the funds generated pursuant to Sections 26
14and 27 from the Horse Racing Fund into the General Revenue
15Fund.
16    In the event that in any fiscal year, the amount of total
17funds in the Horse Racing Fund is insufficient to meet the
18annual operating expenses of the Board, as appropriated by the
19General Assembly for that fiscal year, the Board shall invoice
20the organization licensees for the amount of the deficit. The
21amount of the invoice shall be allocated in a proportionate
22amount of pari-mutuel wagering handled by the organization
23licensee in the year preceding assessment and divided by the
24total pari-mutuel wagering handled by all Illinois
25organization licensees. The payments shall be made 50% from the
26organization licensee's account and 50% from the organization

 

 

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1licensee's purse account.
2    (d) Beginning January 1, 2000, payments to all programs in
3existence on the effective date of this amendatory Act of 1999
4that are identified in Sections 26(c), 26(f), 26(h)(11)(C), and
528, subsections (a), (b), (c), (d), (e), (f), (g), and (h) of
6Section 30, and subsections (a), (b), (c), (d), (e), (f), (g),
7and (h) of Section 31 shall be made from the General Revenue
8Fund at the funding levels determined by amounts paid under
9this Act in calendar year 1998. Beginning on the effective date
10of this amendatory Act of the 93rd General Assembly, payments
11to the Peoria Park District shall be made from the General
12Revenue Fund at the funding level determined by amounts paid to
13that park district for museum purposes under this Act in
14calendar year 1994.
15    If an inter-track wagering location licensee's facility
16changes its location, then the payments associated with that
17facility under this subsection (d) for museum purposes shall be
18paid to the park district in the area where the facility
19relocates, and the payments shall be used for museum purposes.
20If the facility does not relocate to a park district, then the
21payments shall be paid to the taxing district that is
22responsible for park or museum expenditures.
23    (e) Beginning July 1, 2006, the payment authorized under
24subsection (d) to museums and aquariums located in park
25districts of over 500,000 population shall be paid to museums,
26aquariums, and zoos in amounts determined by Museums in the

 

 

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1Park, an association of museums, aquariums, and zoos located on
2Chicago Park District property.
3    (f) Beginning July 1, 2007, the Children's Discovery Museum
4in Normal, Illinois shall receive payments from the General
5Revenue Fund at the funding level determined by the amounts
6paid to the Miller Park Zoo in Bloomington, Illinois under this
7Section in calendar year 2006.
8(Source: P.A. 95-222, eff. 8-16-07; 96-562, eff. 8-18-09.)
 
9    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
10    Sec. 30. (a) The General Assembly declares that it is the
11policy of this State to encourage the breeding of thoroughbred
12horses in this State and the ownership of such horses by
13residents of this State in order to provide for: sufficient
14numbers of high quality thoroughbred horses to participate in
15thoroughbred racing meetings in this State, and to establish
16and preserve the agricultural and commercial benefits of such
17breeding and racing industries to the State of Illinois. It is
18the intent of the General Assembly to further this policy by
19the provisions of this Act.
20    (b) Each organization licensee conducting a thoroughbred
21racing meeting pursuant to this Act shall provide at least two
22races each day limited to Illinois conceived and foaled horses
23or Illinois foaled horses or both. A minimum of 6 races shall
24be conducted each week limited to Illinois conceived and foaled
25or Illinois foaled horses or both. No horses shall be permitted

 

 

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1to start in such races unless duly registered under the rules
2of the Department of Agriculture.
3    (c) Conditions of races under subsection (b) shall be
4commensurate with past performance, quality, and class of
5Illinois conceived and foaled and Illinois foaled horses
6available. If, however, sufficient competition cannot be had
7among horses of that class on any day, the races may, with
8consent of the Board, be eliminated for that day and substitute
9races provided.
10    (d) There is hereby created a special fund of the State
11Treasury to be known as the Illinois Thoroughbred Breeders
12Fund.
13    Beginning on the effective date of this amendatory Act of
14the 97th General Assembly, the Illinois Thoroughbred Breeders
15Fund shall become a non-appropriated trust fund held separately
16from State moneys. Expenditures from this Fund shall no longer
17be subject to appropriation.
18    Except as provided in subsection (g) of Section 27 of this
19Act, 8.5% of all the monies received by the State as privilege
20taxes on Thoroughbred racing meetings shall be paid into the
21Illinois Thoroughbred Breeders Fund.
22    Notwithstanding any provision of law to the contrary,
23amounts deposited into the Illinois Thoroughbred Breeders Fund
24from revenues received from the Horse Racing Impact Fee Fund
25after the effective date of this amendatory Act of the 97th
26General Assembly shall be in addition to tax and fee amounts

 

 

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1paid under this Section for calendar year 2011 and thereafter.
2    (e) The Illinois Thoroughbred Breeders Fund shall be
3administered by the Department of Agriculture with the advice
4and assistance of the Advisory Board created in subsection (f)
5of this Section.
6    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
7shall consist of the Director of the Department of Agriculture,
8who shall serve as Chairman; a member of the Illinois Racing
9Board, designated by it; 2 representatives of the organization
10licensees conducting thoroughbred racing meetings, recommended
11by them; 2 representatives of the Illinois Thoroughbred
12Breeders and Owners Foundation, recommended by it; one
13representative and 2 representatives of the Horsemen's
14Benevolent Protective Association; and one representative from
15the Illinois Thoroughbred Horsemen's Association or any
16successor organization established in Illinois comprised of
17the largest number of owners and trainers, recommended by it,
18with one representative of the Horsemen's Benevolent and
19Protective Association to come from its Illinois Division, and
20one from its Chicago Division. Advisory Board members shall
21serve for 2 years commencing January 1 of each odd numbered
22year. If representatives of the organization licensees
23conducting thoroughbred racing meetings, the Illinois
24Thoroughbred Breeders and Owners Foundation, and the
25Horsemen's Benevolent Protection Association, and the Illinois
26Thoroughbred Horsemen's Association have not been recommended

 

 

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1by January 1, of each odd numbered year, the Director of the
2Department of Agriculture shall make an appointment for the
3organization failing to so recommend a member of the Advisory
4Board. Advisory Board members shall receive no compensation for
5their services as members but shall be reimbursed for all
6actual and necessary expenses and disbursements incurred in the
7execution of their official duties.
8    (g) No monies shall be expended from the Illinois
9Thoroughbred Breeders Fund except as appropriated by the
10General Assembly. Monies expended appropriated from the
11Illinois Thoroughbred Breeders Fund shall be expended by the
12Department of Agriculture, with the advice and assistance of
13the Illinois Thoroughbred Breeders Fund Advisory Board, for the
14following purposes only:
15        (1) To provide purse supplements to owners of horses
16    participating in races limited to Illinois conceived and
17    foaled and Illinois foaled horses. Any such purse
18    supplements shall not be included in and shall be paid in
19    addition to any purses, stakes, or breeders' awards offered
20    by each organization licensee as determined by agreement
21    between such organization licensee and an organization
22    representing the horsemen. No monies from the Illinois
23    Thoroughbred Breeders Fund shall be used to provide purse
24    supplements for claiming races in which the minimum
25    claiming price is less than $7,500.
26        (2) To provide stakes and awards to be paid to the

 

 

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1    owners of the winning horses in certain races limited to
2    Illinois conceived and foaled and Illinois foaled horses
3    designated as stakes races.
4        (2.5) To provide an award to the owner or owners of an
5    Illinois conceived and foaled or Illinois foaled horse that
6    wins a maiden special weight, an allowance, overnight
7    handicap race, or claiming race with claiming price of
8    $10,000 or more providing the race is not restricted to
9    Illinois conceived and foaled or Illinois foaled horses.
10    Awards shall also be provided to the owner or owners of
11    Illinois conceived and foaled and Illinois foaled horses
12    that place second or third in those races. To the extent
13    that additional moneys are required to pay the minimum
14    additional awards of 40% of the purse the horse earns for
15    placing first, second or third in those races for Illinois
16    foaled horses and of 60% of the purse the horse earns for
17    placing first, second or third in those races for Illinois
18    conceived and foaled horses, those moneys shall be provided
19    from the purse account at the track where earned.
20        (3) To provide stallion awards to the owner or owners
21    of any stallion that is duly registered with the Illinois
22    Thoroughbred Breeders Fund Program prior to the effective
23    date of this amendatory Act of 1995 whose duly registered
24    Illinois conceived and foaled offspring wins a race
25    conducted at an Illinois thoroughbred racing meeting other
26    than a claiming race, provided that the stallion stood for

 

 

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1    service within Illinois at the time the offspring was
2    conceived and that the stallion did not stand for service
3    outside of Illinois at any time during the year in which
4    the offspring was conceived. Such award shall not be paid
5    to the owner or owners of an Illinois stallion that served
6    outside this State at any time during the calendar year in
7    which such race was conducted.
8        (4) To provide $75,000 annually for purses to be
9    distributed to county fairs that provide for the running of
10    races during each county fair exclusively for the
11    thoroughbreds conceived and foaled in Illinois. The
12    conditions of the races shall be developed by the county
13    fair association and reviewed by the Department with the
14    advice and assistance of the Illinois Thoroughbred
15    Breeders Fund Advisory Board. There shall be no wagering of
16    any kind on the running of Illinois conceived and foaled
17    races at county fairs.
18        (4.1) To provide purse money for an Illinois stallion
19    stakes program.
20        (5) No less than 90% 80% of all monies appropriated
21    from the Illinois Thoroughbred Breeders Fund shall be
22    expended for the purposes in (1), (2), (2.5), (3), (4),
23    (4.1), and (5) as shown above.
24        (6) To provide for educational programs regarding the
25    thoroughbred breeding industry.
26        (7) To provide for research programs concerning the

 

 

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1    health, development and care of the thoroughbred horse.
2        (8) To provide for a scholarship and training program
3    for students of equine veterinary medicine.
4        (9) To provide for dissemination of public information
5    designed to promote the breeding of thoroughbred horses in
6    Illinois.
7        (10) To provide for all expenses incurred in the
8    administration of the Illinois Thoroughbred Breeders Fund.
9    (h) The Illinois Thoroughbred Breeders Fund is not subject
10to administrative charges or chargebacks, including, but not
11limited to, those authorized under Section 8h of the State
12Finance Act. Whenever the Governor finds that the amount in the
13Illinois Thoroughbred Breeders Fund is more than the total of
14the outstanding appropriations from such fund, the Governor
15shall notify the State Comptroller and the State Treasurer of
16such fact. The Comptroller and the State Treasurer, upon
17receipt of such notification, shall transfer such excess amount
18from the Illinois Thoroughbred Breeders Fund to the General
19Revenue Fund.
20    (i) A sum equal to 13% 12 1/2% of the first prize money of
21every purse won by an Illinois foaled or an Illinois conceived
22and foaled horse in races not limited to Illinois foaled horses
23or Illinois conceived and foaled horses, or both, shall be paid
24by the organization licensee conducting the horse race meeting.
25Such sum shall be paid 50% from the organization licensee's
26account and 50% from the purse account of the licensee share of

 

 

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1the money wagered as follows: 11 1/2% to the breeder of the
2winning horse and 1 1/2% 1% to the organization representing
3thoroughbred breeders and owners whose representative serves
4on the Illinois Thoroughbred Breeders Fund Advisory Board for
5verifying the amounts of breeders' awards earned, assuring
6their distribution in accordance with this Act, and servicing
7and promoting the Illinois thoroughbred horse racing industry.
8The organization representing thoroughbred breeders and owners
9shall cause all expenditures of monies received under this
10subsection (i) to be audited at least annually by a registered
11public accountant. The organization shall file copies of each
12annual audit with the Racing Board, the Clerk of the House of
13Representatives and the Secretary of the Senate, and shall make
14copies of each annual audit available to the public upon
15request and upon payment of the reasonable cost of photocopying
16the requested number of copies. Such payments shall not reduce
17any award to the owner of the horse or reduce the taxes payable
18under this Act. Upon completion of its racing meet, each
19organization licensee shall deliver to the organization
20representing thoroughbred breeders and owners whose
21representative serves on the Illinois Thoroughbred Breeders
22Fund Advisory Board a listing of all the Illinois foaled and
23the Illinois conceived and foaled horses which won breeders'
24awards and the amount of such breeders' awards under this
25subsection to verify accuracy of payments and assure proper
26distribution of breeders' awards in accordance with the

 

 

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1provisions of this Act. Such payments shall be delivered by the
2organization licensee within 30 days of the end of each race
3meeting.
4    (j) A sum equal to 13% 12 1/2% of the first prize money won
5in each race limited to Illinois foaled horses or Illinois
6conceived and foaled horses, or both, shall be paid in the
7following manner by the organization licensee conducting the
8horse race meeting, 50% from the organization licensee's
9account and 50% from the purse account of the licensee share of
10the money wagered: 11 1/2% to the breeders of the horses in
11each such race which are the official first, second, third and
12fourth finishers and 1 1/2% 1% to the organization representing
13thoroughbred breeders and owners whose representative serves
14on the Illinois Thoroughbred Breeders Fund Advisory Board for
15verifying the amounts of breeders' awards earned, assuring
16their proper distribution in accordance with this Act, and
17servicing and promoting the Illinois thoroughbred horse racing
18industry. The organization representing thoroughbred breeders
19and owners shall cause all expenditures of monies received
20under this subsection (j) to be audited at least annually by a
21registered public accountant. The organization shall file
22copies of each annual audit with the Racing Board, the Clerk of
23the House of Representatives and the Secretary of the Senate,
24and shall make copies of each annual audit available to the
25public upon request and upon payment of the reasonable cost of
26photocopying the requested number of copies.

 

 

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

 

 

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

 

 

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

 

 

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1for such races, the Department of Agriculture shall consider
2factors, including but not limited to, the amount of money
3appropriated for the Illinois Thoroughbred Breeders Fund
4program, organization licensees' contributions, availability
5of stakes caliber horses as demonstrated by past performances,
6whether the race can be coordinated into the proposed racing
7dates within organization licensees' racing dates, opportunity
8for colts and fillies and various age groups to race, public
9wagering on such races, and the previous racing schedule.
10    (n) The Board and the organizational licensee shall notify
11the Department of the conditions and minimum purses for races
12limited to Illinois conceived and foaled and Illinois foaled
13horses conducted for each organizational licensee conducting a
14thoroughbred racing meeting. The Department of Agriculture
15with the advice and assistance of the Illinois Thoroughbred
16Breeders Fund Advisory Board may allocate monies for purse
17supplements for such races. In determining whether to allocate
18money and the amount, the Department of Agriculture shall
19consider factors, including but not limited to, the amount of
20money appropriated for the Illinois Thoroughbred Breeders Fund
21program, the number of races that may occur, and the
22organizational licensee's purse structure.
23    (o) In order to improve the breeding quality of
24thoroughbred horses in the State, the General Assembly
25recognizes that existing provisions of this Section to
26encourage such quality breeding need to be revised and

 

 

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1strengthened. As such, a Thoroughbred Breeder's Program Task
2Force is to be appointed by the Governor by September 1, 1999
3to make recommendations to the General Assembly by no later
4than March 1, 2000. This task force is to be composed of 2
5representatives from the Illinois Thoroughbred Breeders and
6Owners Foundation, 2 from the Illinois Thoroughbred Horsemen's
7Association, 3 from Illinois race tracks operating
8thoroughbred race meets for an average of at least 30 days in
9the past 3 years, the Director of Agriculture, the Executive
10Director of the Racing Board, who shall serve as Chairman.
11(Source: P.A. 91-40, eff. 6-25-99.)
 
12    (230 ILCS 5/30.5)
13    Sec. 30.5. Illinois Quarter Horse Breeders Fund.
14    (a) The General Assembly declares that it is the policy of
15this State to encourage the breeding of racing quarter horses
16in this State and the ownership of such horses by residents of
17this State in order to provide for sufficient numbers of high
18quality racing quarter horses in this State and to establish
19and preserve the agricultural and commercial benefits of such
20breeding and racing industries to the State of Illinois. It is
21the intent of the General Assembly to further this policy by
22the provisions of this Act.
23    (b) There is hereby created a non-appropriated trust
24special fund in the State Treasury to be known as the Illinois
25Racing Quarter Horse Breeders Fund, which is held separately

 

 

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1from State moneys. Except as provided in subsection (g) of
2Section 27 of this Act, 8.5% of all the moneys received by the
3State as pari-mutuel taxes on quarter horse racing shall be
4paid into the Illinois Racing Quarter Horse Breeders Fund. The
5Illinois Racing Quarter Horse Breeders Fund shall not be
6subject to administrative charges or chargebacks, including,
7but not limited to, those authorized under Section 8h of the
8State Finance Act.
9    (c) The Illinois Racing Quarter Horse Breeders Fund shall
10be administered by the Department of Agriculture with the
11advice and assistance of the Advisory Board created in
12subsection (d) of this Section.
13    (d) The Illinois Racing Quarter Horse Breeders Fund
14Advisory Board shall consist of the Director of the Department
15of Agriculture, who shall serve as Chairman; a member of the
16Illinois Racing Board, designated by it; one representative of
17the organization licensees conducting pari-mutuel quarter
18horse racing meetings, recommended by them; 2 representatives
19of the Illinois Running Quarter Horse Association, recommended
20by it; and the Superintendent of Fairs and Promotions from the
21Department of Agriculture. Advisory Board members shall serve
22for 2 years commencing January 1 of each odd numbered year. If
23representatives have not been recommended by January 1 of each
24odd numbered year, the Director of the Department of
25Agriculture may make an appointment for the organization
26failing to so recommend a member of the Advisory Board.

 

 

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1Advisory Board members shall receive no compensation for their
2services as members but may be reimbursed for all actual and
3necessary expenses and disbursements incurred in the execution
4of their official duties.
5    (e) Moneys in No moneys shall be expended from the Illinois
6Racing Quarter Horse Breeders Fund except as appropriated by
7the General Assembly. Moneys appropriated from the Illinois
8Racing Quarter Horse Breeders Fund shall be expended by the
9Department of Agriculture, with the advice and assistance of
10the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
11for the following purposes only:
12        (1) To provide stakes and awards to be paid to the
13    owners of the winning horses in certain races. This
14    provision is limited to Illinois conceived and foaled
15    horses.
16        (2) To provide an award to the owner or owners of an
17    Illinois conceived and foaled horse that wins a race when
18    pari-mutuel wagering is conducted; providing the race is
19    not restricted to Illinois conceived and foaled horses.
20        (3) To provide purse money for an Illinois stallion
21    stakes program.
22        (4) To provide for purses to be distributed for the
23    running of races during the Illinois State Fair and the
24    DuQuoin State Fair exclusively for quarter horses
25    conceived and foaled in Illinois.
26        (5) To provide for purses to be distributed for the

 

 

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1    running of races at Illinois county fairs exclusively for
2    quarter horses conceived and foaled in Illinois.
3        (6) To provide for purses to be distributed for running
4    races exclusively for quarter horses conceived and foaled
5    in Illinois at locations in Illinois determined by the
6    Department of Agriculture with advice and consent of the
7    Racing Quarter Horse Breeders Fund Advisory Board.
8        (7) No less than 90% of all moneys appropriated from
9    the Illinois Racing Quarter Horse Breeders Fund shall be
10    expended for the purposes in items (1), (2), (3), (4), and
11    (5) of this subsection (e).
12        (8) To provide for research programs concerning the
13    health, development, and care of racing quarter horses.
14        (9) To provide for dissemination of public information
15    designed to promote the breeding of racing quarter horses
16    in Illinois.
17        (10) To provide for expenses incurred in the
18    administration of the Illinois Racing Quarter Horse
19    Breeders Fund.
20    (f) The Department of Agriculture shall, by rule, with the
21advice and assistance of the Illinois Racing Quarter Horse
22Breeders Fund Advisory Board:
23        (1) Qualify stallions for Illinois breeding; such
24    stallions to stand for service within the State of
25    Illinois, at the time of a foal's conception. Such stallion
26    must not stand for service at any place outside the State

 

 

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1    of Illinois during the calendar year in which the foal is
2    conceived. The Department of Agriculture may assess and
3    collect application fees for the registration of
4    Illinois-eligible stallions. All fees collected are to be
5    paid into the Illinois Racing Quarter Horse Breeders Fund.
6        (2) Provide for the registration of Illinois conceived
7    and foaled horses. No such horse shall compete in the races
8    limited to Illinois conceived and foaled horses unless it
9    is registered with the Department of Agriculture. The
10    Department of Agriculture may prescribe such forms as are
11    necessary to determine the eligibility of such horses. The
12    Department of Agriculture may assess and collect
13    application fees for the registration of Illinois-eligible
14    foals. All fees collected are to be paid into the Illinois
15    Racing Quarter Horse Breeders Fund. No person shall
16    knowingly prepare or cause preparation of an application
17    for registration of such foals that contains false
18    information.
19    (g) The Department of Agriculture, with the advice and
20assistance of the Illinois Racing Quarter Horse Breeders Fund
21Advisory Board, shall provide that certain races limited to
22Illinois conceived and foaled be stakes races and determine the
23total amount of stakes and awards to be paid to the owners of
24the winning horses in such races.
25(Source: P.A. 91-40, eff. 6-25-99.)
 

 

 

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1    (230 ILCS 5/31)  (from Ch. 8, par. 37-31)
2    Sec. 31. (a) The General Assembly declares that it is the
3policy of this State to encourage the breeding of standardbred
4horses in this State and the ownership of such horses by
5residents of this State in order to provide for: sufficient
6numbers of high quality standardbred horses to participate in
7harness racing meetings in this State, and to establish and
8preserve the agricultural and commercial benefits of such
9breeding and racing industries to the State of Illinois. It is
10the intent of the General Assembly to further this policy by
11the provisions of this Section of this Act.
12    (b) Each organization licensee conducting a harness racing
13meeting pursuant to this Act shall provide for at least two
14races each race program limited to Illinois conceived and
15foaled horses. A minimum of 6 races shall be conducted each
16week limited to Illinois conceived and foaled horses. No horses
17shall be permitted to start in such races unless duly
18registered under the rules of the Department of Agriculture.
19    (b-5) Organization licensees, not including the Illinois
20State Fair or the DuQuoin State Fair, shall provide stake races
21and early closer races for Illinois conceived and foaled horses
22so that purses distributed for such races shall be no less than
2317% of total purses distributed for harness racing in that
24calendar year in addition to any stakes payments and starting
25fees contributed by horse owners.
26    (b-10) Each organization licensee conducting a harness

 

 

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1racing meeting pursuant to this Act shall provide an owner
2award to be paid from the purse account equal to 25% of the
3amount earned by Illinois conceived and foaled horses in races
4that are not restricted to Illinois conceived and foaled
5horses. The owner awards shall not be paid on races below the
6$10,000 claiming class.
7    (c) Conditions of races under subsection (b) shall be
8commensurate with past performance, quality and class of
9Illinois conceived and foaled horses available. If, however,
10sufficient competition cannot be had among horses of that class
11on any day, the races may, with consent of the Board, be
12eliminated for that day and substitute races provided.
13    (d) There is hereby created a special fund of the State
14Treasury to be known as the Illinois Standardbred Breeders
15Fund.
16    During the calendar year 1981, and each year thereafter,
17except as provided in subsection (g) of Section 27 of this Act,
18eight and one-half per cent of all the monies received by the
19State as privilege taxes on harness racing meetings shall be
20paid into the Illinois Standardbred Breeders Fund.
21    (e) The Illinois Standardbred Breeders Fund shall be
22administered by the Department of Agriculture with the
23assistance and advice of the Advisory Board created in
24subsection (f) of this Section.
25    (f) The Illinois Standardbred Breeders Fund Advisory Board
26is hereby created. The Advisory Board shall consist of the

 

 

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1Director of the Department of Agriculture, who shall serve as
2Chairman; the Superintendent of the Illinois State Fair; a
3member of the Illinois Racing Board, designated by it; a
4representative of the Illinois Standardbred Owners and
5Breeders Association, recommended by it; a representative of
6the Illinois Association of Agricultural Fairs, recommended by
7it, such representative to be from a fair at which Illinois
8conceived and foaled racing is conducted; a representative of
9the organization licensees conducting harness racing meetings,
10recommended by them and a representative of the Illinois
11Harness Horsemen's Association, recommended by it. Advisory
12Board members shall serve for 2 years commencing January 1, of
13each odd numbered year. If representatives of the Illinois
14Standardbred Owners and Breeders Associations, the Illinois
15Association of Agricultural Fairs, the Illinois Harness
16Horsemen's Association, and the organization licensees
17conducting harness racing meetings have not been recommended by
18January 1, of each odd numbered year, the Director of the
19Department of Agriculture shall make an appointment for the
20organization failing to so recommend a member of the Advisory
21Board. Advisory Board members shall receive no compensation for
22their services as members but shall be reimbursed for all
23actual and necessary expenses and disbursements incurred in the
24execution of their official duties.
25    (g) No monies shall be expended from the Illinois
26Standardbred Breeders Fund except as appropriated by the

 

 

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1General Assembly. Monies appropriated from the Illinois
2Standardbred Breeders Fund shall be expended by the Department
3of Agriculture, with the assistance and advice of the Illinois
4Standardbred Breeders Fund Advisory Board for the following
5purposes only:
6        1. To provide purses for races limited to Illinois
7    conceived and foaled horses at the State Fair and the
8    DuQuoin State Fair.
9        2. To provide purses for races limited to Illinois
10    conceived and foaled horses at county fairs.
11        3. To provide purse supplements for races limited to
12    Illinois conceived and foaled horses conducted by
13    associations conducting harness racing meetings.
14        4. No less than 75% of all monies in the Illinois
15    Standardbred Breeders Fund shall be expended for purses in
16    1, 2 and 3 as shown above.
17        5. In the discretion of the Department of Agriculture
18    to provide awards to harness breeders of Illinois conceived
19    and foaled horses which win races conducted by organization
20    licensees conducting harness racing meetings. A breeder is
21    the owner of a mare at the time of conception. No more than
22    10% of all monies appropriated from the Illinois
23    Standardbred Breeders Fund shall be expended for such
24    harness breeders awards. No more than 25% of the amount
25    expended for harness breeders awards shall be expended for
26    expenses incurred in the administration of such harness

 

 

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1    breeders awards.
2        6. To pay for the improvement of racing facilities
3    located at the State Fair and County fairs.
4        7. To pay the expenses incurred in the administration
5    of the Illinois Standardbred Breeders Fund.
6        8. To promote the sport of harness racing, including
7    grants up to a maximum of $7,500 per fair per year for
8    conducting pari-mutuel wagering during the advertised
9    dates of a county fair.
10        9. To pay up to $50,000 annually for the Department of
11    Agriculture to conduct drug testing at county fairs racing
12    standardbred horses.
13        10. To pay up to $100,000 annually for distribution to
14    Illinois county fairs to supplement premiums offered in
15    junior classes.
16        11. To pay up to $100,000 annually for division and
17    equal distribution to the animal sciences department of
18    each Illinois public university system engaged in equine
19    research and education on or before the effective date of
20    this amendatory Act of the 97th General Assembly for equine
21    research and education.
22    (h) (Blank) Whenever the Governor finds that the amount in
23the Illinois Standardbred Breeders Fund is more than the total
24of the outstanding appropriations from such fund, the Governor
25shall notify the State Comptroller and the State Treasurer of
26such fact. The Comptroller and the State Treasurer, upon

 

 

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

 

 

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1    foal is conceived and that the owner of the stallion was
2    for the 12 months prior, a resident of Illinois. Foals
3    conceived outside the State of Illinois from shipped semen
4    from a stallion qualified for breeders' awards under this
5    Section are not eligible to participate in the Illinois
6    conceived and foaled program. The articles of agreement of
7    any partnership, joint venture, limited partnership,
8    syndicate, association or corporation and any bylaws and
9    stock certificates must contain a restriction that
10    provides that the ownership or transfer of interest by any
11    one of the persons a party to the agreement can only be
12    made to a person who qualifies as an Illinois resident.
13        2. Provide for the registration of Illinois conceived
14    and foaled horses and no such horse shall compete in the
15    races limited to Illinois conceived and foaled horses
16    unless registered with the Department of Agriculture. The
17    Department of Agriculture may prescribe such forms as may
18    be necessary to determine the eligibility of such horses.
19    No person shall knowingly prepare or cause preparation of
20    an application for registration of such foals containing
21    false information. A mare (dam) must be in the state at
22    least 30 days prior to foaling or remain in the State at
23    least 30 days at the time of foaling. Beginning with the
24    1996 breeding season and for foals of 1997 and thereafter,
25    a foal conceived in the State of Illinois by transported
26    fresh semen may be eligible for Illinois conceived and

 

 

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1    foaled registration provided all breeding and foaling
2    requirements are met. The stallion must be qualified for
3    Illinois Standardbred Breeders Fund breeding at the time of
4    conception and the mare must be inseminated within the
5    State of Illinois. The foal must be dropped in Illinois and
6    properly registered with the Department of Agriculture in
7    accordance with this Act.
8        3. Provide that at least a 5 day racing program shall
9    be conducted at the State Fair each year, which program
10    shall include at least the following races limited to
11    Illinois conceived and foaled horses: (a) a two year old
12    Trot and Pace, and Filly Division of each; (b) a three year
13    old Trot and Pace, and Filly Division of each; (c) an aged
14    Trot and Pace, and Mare Division of each.
15        4. Provide for the payment of nominating, sustaining
16    and starting fees for races promoting the sport of harness
17    racing and for the races to be conducted at the State Fair
18    as provided in subsection (j) 3 of this Section provided
19    that the nominating, sustaining and starting payment
20    required from an entrant shall not exceed 2% of the purse
21    of such race. All nominating, sustaining and starting
22    payments shall be held for the benefit of entrants and
23    shall be paid out as part of the respective purses for such
24    races. Nominating, sustaining and starting fees shall be
25    held in trust accounts for the purposes as set forth in
26    this Act and in accordance with Section 205-15 of the

 

 

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1    Department of Agriculture Law (20 ILCS 205/205-15).
2        5. Provide for the registration with the Department of
3    Agriculture of Colt Associations or county fairs desiring
4    to sponsor races at county fairs.
5        6. Provide for the promotion of producing standardbred
6    racehorses by providing a bonus award program for owners of
7    2-year-old horses that win multiple major stakes races that
8    are limited to Illinois conceived and foaled horses.
9    (k) The Department of Agriculture, with the advice and
10assistance of the Illinois Standardbred Breeders Fund Advisory
11Board, may allocate monies for purse supplements for such
12races. In determining whether to allocate money and the amount,
13the Department of Agriculture shall consider factors,
14including but not limited to, the amount of money appropriated
15for the Illinois Standardbred Breeders Fund program, the number
16of races that may occur, and an organizational licensee's purse
17structure. The organizational licensee shall notify the
18Department of Agriculture of the conditions and minimum purses
19for races limited to Illinois conceived and foaled horses to be
20conducted by each organizational licensee conducting a harness
21racing meeting for which purse supplements have been
22negotiated.
23    (l) All races held at county fairs and the State Fair which
24receive funds from the Illinois Standardbred Breeders Fund
25shall be conducted in accordance with the rules of the United
26States Trotting Association unless otherwise modified by the

 

 

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1Department of Agriculture.
2    (m) At all standardbred race meetings held or conducted
3under authority of a license granted by the Board, and at all
4standardbred races held at county fairs which are approved by
5the Department of Agriculture or at the Illinois or DuQuoin
6State Fairs, no one shall jog, train, warm up or drive a
7standardbred horse unless he or she is wearing a protective
8safety helmet, with the chin strap fastened and in place, which
9meets the standards and requirements as set forth in the 1984
10Standard for Protective Headgear for Use in Harness Racing and
11Other Equestrian Sports published by the Snell Memorial
12Foundation, or any standards and requirements for headgear the
13Illinois Racing Board may approve. Any other standards and
14requirements so approved by the Board shall equal or exceed
15those published by the Snell Memorial Foundation. Any
16equestrian helmet bearing the Snell label shall be deemed to
17have met those standards and requirements.
18(Source: P.A. 91-239, eff. 1-1-00.)
 
19    (230 ILCS 5/31.1)  (from Ch. 8, par. 37-31.1)
20    Sec. 31.1. (a) Organization licensees collectively shall
21contribute annually to charity the sum of $1,000,000 $750,000
22to non-profit organizations that provide medical and family,
23counseling, and similar services to persons who reside or work
24on the backstretch of Illinois racetracks. These contributions
25shall be collected as follows: (i) no later than July 1st of

 

 

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1each year the Board shall assess each organization licensee,
2except those tracks which are not within 100 miles of each
3other which tracks shall pay $40,000 $30,000 annually apiece
4into the Board charity fund, that amount which equals $920,000
5$690,000 multiplied by the amount of pari-mutuel wagering
6handled by the organization licensee in the year preceding
7assessment and divided by the total pari-mutuel wagering
8handled by all Illinois organization licensees, except those
9tracks which are not within 100 miles of each other, in the
10year preceding assessment; (ii) notice of the assessed
11contribution shall be mailed to each organization licensee;
12(iii) within thirty days of its receipt of such notice, each
13organization licensee shall remit the assessed contribution to
14the Board. If an organization licensee wilfully fails to so
15remit the contribution, the Board may revoke its license to
16conduct horse racing.
17    (b) No later than October 1st of each year, any qualified
18charitable organization seeking an allotment of contributed
19funds shall submit to the Board an application for those funds,
20using the Board's approved form. No later than December 31st of
21each year, the Board shall distribute all such amounts
22collected that year to such charitable organization
23applicants.
24(Source: P.A. 87-110.)
 
25    (230 ILCS 5/32.1)

 

 

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1    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
2real estate equalization.
3    (a) In order to encourage new investment in Illinois
4racetrack facilities and mitigate differing real estate tax
5burdens among all racetracks, the licensees affiliated or
6associated with each racetrack that has been awarded live
7racing dates in the current year shall receive an immediate
8pari-mutuel tax credit in an amount equal to the greater of (i)
950% of the amount of the real estate taxes paid in the prior
10year attributable to that racetrack, or (ii) the amount by
11which the real estate taxes paid in the prior year attributable
12to that racetrack exceeds 60% of the average real estate taxes
13paid in the prior year for all racetracks awarded live horse
14racing meets in the current year.
15    Each year, regardless of whether the organization licensee
16conducted live racing in the year of certification, the Board
17shall certify in writing, prior to December 31, the real estate
18taxes paid in that year for each racetrack and the amount of
19the pari-mutuel tax credit that each organization licensee,
20intertrack wagering licensee, and intertrack wagering location
21licensee that derives its license from such racetrack is
22entitled in the succeeding calendar year. The real estate taxes
23considered under this Section for any racetrack shall be those
24taxes on the real estate parcels and related facilities used to
25conduct a horse race meeting and inter-track wagering at such
26racetrack under this Act. In no event shall the amount of the

 

 

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1tax credit under this Section exceed the amount of pari-mutuel
2taxes otherwise calculated under this Act. The amount of the
3tax credit under this Section shall be retained by each
4licensee and shall not be subject to any reallocation or
5further distribution under this Act. The Board may promulgate
6emergency rules to implement this Section.
7    (b) Beginning on January 1 following the calendar year
8during which an organization licensee begins receiving funds
9from the Horse Racing Impact Fee Fund, the maximum credit
10amount an organization licensee shall be eligible to receive
11pursuant to this Section shall be equal to 50% of the credit
12awarded to the organization licensee in calendar year 2010.
13(Source: P.A. 91-40, eff. 6-25-99.)
 
14    (230 ILCS 5/34.3 new)
15    Sec. 34.3. Drug testing. The Illinois Racing Board and the
16Department of Agriculture shall jointly establish a program for
17the purpose of conducting drug testing of horses at county
18fairs and shall adopt any rules necessary for enforcement of
19the program. The rules shall include appropriate penalties for
20violations.
 
21    (230 ILCS 5/36)   (from Ch. 8, par. 37-36)
22    Sec. 36. (a) Whoever administers or conspires to administer
23to any horse a hypnotic, narcotic, stimulant, depressant or any
24chemical substance which may affect the speed of a horse at any

 

 

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1time in any race where the purse or any part of the purse is
2made of money authorized by any Section of this Act, except
3those chemical substances permitted by ruling of the Board,
4internally, externally or by hypodermic method in a race or
5prior thereto, or whoever knowingly enters a horse in any race
6within a period of 24 hours after any hypnotic, narcotic,
7stimulant, depressant or any other chemical substance which may
8affect the speed of a horse at any time, except those chemical
9substances permitted by ruling of the Board, has been
10administered to such horse either internally or externally or
11by hypodermic method for the purpose of increasing or retarding
12the speed of such horse shall be guilty of a Class 4 felony.
13The Board shall suspend or revoke such violator's license.
14    (b) The term "hypnotic" as used in this Section includes
15all barbituric acid preparations and derivatives.
16    (c) The term "narcotic" as used in this Section includes
17opium and all its alkaloids, salts, preparations and
18derivatives, cocaine and all its salts, preparations and
19derivatives and substitutes.
20    (d) The provisions of this Section 36 and the treatment
21authorized herein apply to horses entered in and competing in
22race meetings as defined in Section 3.47 of this Act and to
23horses entered in and competing at any county fair.
24(Source: P.A. 79-1185.)
 
25    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)

 

 

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1    Sec. 40. (a) The imposition of any fine or penalty provided
2in this Act shall not preclude the Board in its rules and
3regulations from imposing a fine or penalty for any other
4action which, in the Board's discretion, is a detriment or
5impediment to horse racing.
6    (b) The Director of Agriculture or his or her authorized
7representative shall impose the following monetary penalties
8and hold administrative hearings as required for failure to
9submit the following applications, lists, or reports within the
10time period, date or manner required by statute or rule or for
11removing a foal from Illinois prior to inspection:
12        (1) late filing of a renewal application for offering
13    or standing stallion for service:
14            (A) if an application is submitted no more than 30
15        days late, $50;
16            (B) if an application is submitted no more than 45
17        days late, $150; or
18            (C) if an application is submitted more than 45
19        days late, if filing of the application is allowed
20        under an administrative hearing, $250;
21        (2) late filing of list or report of mares bred:
22            (A) if a list or report is submitted no more than
23        30 days late, $50;
24            (B) if a list or report is submitted no more than
25        60 days late $150; or
26            (C) if a list or report is submitted more than 60

 

 

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

 

 

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1    Illinois prior to inspection, identification and
2    certification by a Department of Agriculture investigator,
3    $50; and
4        (6) if a list or report of mares bred is incomplete,
5    $50 per mare not included on the list or report.
6    Any person upon whom monetary penalties are imposed under
7this Section 3 times within a 5 year period shall have any
8further monetary penalties imposed at double the amounts set
9forth above. All monies assessed and collected for violations
10relating to thoroughbreds shall be paid into the Thoroughbred
11Breeders Fund. All monies assessed and collected for violations
12relating to standardbreds shall be paid into the Standardbred
13Breeders Fund.
14(Source: P.A. 87-397.)
 
15    (230 ILCS 5/56 new)
16    Sec. 56. Horse Racing Impact Fee Fund distribution.
17    (a) Any amounts received by an organization licensee from
18the Horse Racing Impact Fee Fund shall be distributed as
19follows:
20        (1) Amounts shall be paid to the purse account at the
21    track at which the organization licensee is conducting
22    racing equal to the following:
23            12.75% of an amount up to and including
24        $75,000,000;
25            20% of an amount in excess of $75,000,000 but not

 

 

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1        exceeding $100,000,000;
2            26.5% of an amount in excess of $100,000,000 but
3        not exceeding $125,000,000; and
4            20.5% of an amount in excess of $125,000,000.
5        (2) The remainder shall be retained by the organization
6    licensee.
7    (b) Amounts placed into the purse account of an
8organization licensee racing thoroughbred horses shall be used
9for purses, for health care services or worker's compensation
10for racing industry workers, for equine research, for programs
11to care for and transition injured and retired thoroughbred
12horses that race at the race track, or for horse ownership
13promotion, in accordance with the agreement of the horsemen's
14association representing the largest number of owners or
15trainers who race at that organization licensee's race
16meetings.
17    Annually, from the purse account of an organization
18licensee racing thoroughbred horses in the State, except for in
19Madison County, an amount equal to 12% of the amounts placed
20into the purse accounts in accordance with this Section shall
21be paid to the Illinois Thoroughbred Breeders Fund and shall be
22used for owner awards; a stallion program pursuant to paragraph
23(3) of subsection (g) of Section 30 of this Act; and Illinois
24conceived and foaled stakes races pursuant to paragraph (2) of
25subsection (g) of Section 30 of this Act, as specifically
26designated by the horsemen's association representing the

 

 

09700SB0747sam001- 204 -LRB097 04468 AEK 59057 a

1largest number of owners or trainers who race at the
2organization licensee's race meetings.
3    Annually, from the purse account of an organization
4licensee racing thoroughbred horses in Madison County, an
5amount equal to 10% of the amount placed into the purse
6accounts in accordance with this Section shall be paid to the
7Illinois Thoroughbred Breeders Fund and shall be used for owner
8awards; a stallion program pursuant to paragraph (3) of
9subsection (g) of Section 30 of this Act; and Illinois
10conceived and foaled stakes races pursuant to paragraph (2) of
11subsection (g) of Section 30 of this Act, as specifically
12designated by the horsemen's association representing the
13largest number of owners or trainers who race at the
14organization licensee's race meetings.
15    Annually, from the purse account of an organization
16licensee conducting thoroughbred races at a race track in
17Madison County, an amount equal to 1% of the amount distributed
18to purses per subsection (a) of this Section 56 shall be paid
19as follows: 0.33 1/3% to Southern Illinois University
20Department of Animal Sciences for equine research and
21education, an amount equal to 0.33 1/3% shall be used to
22operate laundry facilities for backstretch workers at that race
23track, and an amount equal to 0.33 1/3% shall be paid to
24programs to care for injured and unwanted horses that race at
25that race track.
26    Annually, from the purse account of organization licensees

 

 

09700SB0747sam001- 205 -LRB097 04468 AEK 59057 a

1conducting thoroughbred races at race tracks in Cook County,
2$100,000 shall be paid for division and equal distribution to
3the animal sciences department of each Illinois public
4university system engaged in equine research and education on
5or before the effective date of this amendatory Act of the 97th
6General Assembly for equine research and education.
7    (c) Annually, from the purse account of an organization
8licensee racing standardbred horses, an amount equal to 15% of
9the amount placed into that purse account in accordance with
10this Section shall be paid to the Illinois Colt Stakes Purse
11Distribution Fund. Moneys deposited into the Illinois Colt
12Stakes Purse Distribution Fund shall be used for standardbred
13racing as authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
14subsection (g) of Section 31 of this Act and for bonus awards
15as authorized under paragraph 6 of subsection (j) of Section 31
16of this Act.
17    (d) As a requirement for continued eligibility to receive
18amounts from the Horse Racing Impact Fee Fund, each
19organization licensee must promote live racing and horse
20ownership through marketing and promotional efforts. To meet
21this requirement, all organization licensees operating at each
22race track facility must collectively expend the amount of the
23pari-mutuel tax credit that was certified by the Illinois
24Racing Board in the prior calendar year pursuant to Section
2532.1 of this Act for that race track facility, in addition to
26the amount that was expended by each organizational licensee

 

 

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1for such efforts in calendar year 2009. Such incremental
2expenditures must be directed to assure that all marketing
3expenditures, including those that advertise, market, and
4promote horse racing or horse ownership. The amount spent by
5the organization licensee for such marketing and promotional
6efforts in 2009 shall be certified by the Board no later than
790 days after the effective date of this Section.
8    The Board shall review any amounts expended pursuant to
9this subsection (d) and shall also include an itemized
10description of the amount that was expended by each
11organization licensee pursuant to this subsection (d) in the
12annual report that the Board is required to submit pursuant to
13subsection (d) of Section 14 of the Illinois Horse Racing Act
14of 1975.
15    (e) The Board shall submit a report to the General Assembly
16on or before December 31, 2012 that examines the feasibility of
17conducting electronic gaming at the Illinois State Fairgrounds
18in Sangamon County. At a minimum, this report shall analyze the
19projected revenues that will be generated; the potential for
20cannibalization of existing riverboats, casinos, or other
21electronic gaming facilities; and the potential detriment to
22the surrounding area and its population. The report shall
23include the Board's findings together with appropriate
24recommendations for legislative action.
 
25    Section 90-40. The Riverboat Gambling Act is amended by

 

 

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1changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
211.1, 12, 13, 14, 18, 19, and 20 and by adding Sections 5.3,
37.8, 7.9, 7.10, 7.11, and 7.12 as follows:
 
4    (230 ILCS 10/1)  (from Ch. 120, par. 2401)
5    Sec. 1. Short title. This Act shall be known and may be
6cited as the Illinois Riverboat Gambling Act.
7(Source: P.A. 86-1029.)
 
8    (230 ILCS 10/2)  (from Ch. 120, par. 2402)
9    Sec. 2. Legislative Intent.
10    (a) This Act is intended to benefit the people of the State
11of Illinois by assisting economic development and promoting
12Illinois tourism and by increasing the amount of revenues
13available to the State to assist and support education.
14    (b) While authorization of riverboat and casino gambling
15will enhance investment, development and tourism in Illinois,
16it is recognized that it will do so successfully only if public
17confidence and trust in the credibility and integrity of the
18gambling operations and the regulatory process is maintained.
19Therefore, regulatory provisions of this Act are designed to
20strictly regulate the facilities, persons, associations and
21practices related to gambling operations pursuant to the police
22powers of the State, including comprehensive law enforcement
23supervision.
24    (c) The Illinois Gaming Board established under this Act

 

 

09700SB0747sam001- 208 -LRB097 04468 AEK 59057 a

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

 

 

09700SB0747sam001- 209 -LRB097 04468 AEK 59057 a

1Lake Michigan subject to any limitations contained in Section
27. Notwithstanding any provision in this subsection (c) to the
3contrary, a licensee may conduct gambling at its home dock
4facility as provided in Sections 7 and 11. A licensee may
5conduct riverboat gambling authorized under this Act
6regardless of whether it conducts excursion cruises. A licensee
7may permit the continuous ingress and egress of passengers for
8the purpose of gambling.
9    (d) Gambling that is conducted in accordance with this Act
10using slot machines and video games of chance as defined in the
11Illinois Gambling Act is authorized.
12(Source: P.A. 91-40, eff. 6-25-99.)
 
13    (230 ILCS 10/4)  (from Ch. 120, par. 2404)
14    Sec. 4. Definitions. As used in this Act:
15    (a) "Board" means the Illinois Gaming Board.
16    (b) "Occupational license" means a license issued by the
17Board to a person or entity to perform an occupation which the
18Board has identified as requiring a license to engage in
19riverboat gambling in Illinois.
20    (c) "Gambling game" includes, but is not limited to,
21baccarat, twenty-one, poker, craps, slot machine, video game of
22chance, roulette wheel, klondike table, punchboard, faro
23layout, keno layout, numbers ticket, push card, jar ticket, or
24pull tab which is authorized by the Board as a wagering device
25under this Act.

 

 

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1    (d) "Riverboat" means a self-propelled excursion boat, a
2permanently moored barge, or permanently moored barges that are
3permanently fixed together to operate as one vessel, on which
4lawful gambling is authorized and licensed as provided in this
5Act.
6    "Electronic gaming device" means any mechanical,
7electrical, or other device, contrivance, or machine that is
8authorized by the Board as a wagering device under this Act
9which, upon insertion of currency, a voucher, or a similar
10object therein, or upon payment of any consideration
11whatsoever, is available to play or operate, the play or
12operation of which may deliver or entitle the person playing or
13operating the machine to receive cash, premiums, merchandise,
14tokens, or anything of value whatsoever, whether the payoff is
15made automatically from the machine or in any other manner
16whatsoever. An electronic gaming device:
17        (1) May utilize spinning reels or video displays or
18    both.
19        (2) May dispense vouchers to winning patrons.
20        (3) May use an electronic credit system for receiving
21    wagers and making payouts.
22        (4) May simulate a table game.
23    "Electronic gaming device" does not include table games
24authorized by the Board as a wagering device under this Act.
25    (e) "Managers license" means a license issued by the Board
26to a person or entity to manage gambling operations conducted

 

 

09700SB0747sam001- 211 -LRB097 04468 AEK 59057 a

1by the State pursuant to Section 7.3.
2    (f) "Dock" means the location where a riverboat moors for
3the purpose of embarking passengers for and disembarking
4passengers from the riverboat.
5    (g) "Gross receipts" means the total amount of money
6exchanged for the purchase of chips, tokens, or electronic
7credits cards by riverboat patrons.
8    (h) "Adjusted gross receipts" means the gross receipts less
9winnings paid to wagerers.
10    (i) "Cheat" means to alter the selection of criteria which
11determine the result of a gambling game or the amount or
12frequency of payment in a gambling game.
13    (j) (Blank).
14    (k) "Gambling operation" means the conduct of authorized
15gambling games authorized under this Act upon a riverboat or in
16a casino or authorized under this Act.
17    (l) "License bid" means the lump sum amount of money that
18an applicant bids and agrees to pay the State in return for an
19owners license that is issued or re-issued on or after July 1,
202003.
21    "Table game" means a live gaming apparatus upon which
22gaming is conducted or that determines an outcome that is the
23object of a wager, including, but not limited to, baccarat,
24twenty-one, blackjack, poker, craps, roulette wheel, klondike
25table, punchboard, faro layout, keno layout, or other similar
26games that are authorized by the Board as a wagering device

 

 

09700SB0747sam001- 212 -LRB097 04468 AEK 59057 a

1under this Act. "Table game" does not include electronic gaming
2devices or video games of chance.
3    (m) The terms "minority person", "female", and "person with
4a disability" shall have the same meaning as defined in Section
52 of the Business Enterprise for Minorities, Females, and
6Persons with Disabilities Act.
7    "Authority" means the Chicago Casino Development
8Authority.
9    "Casino" means a facility at which lawful gambling is
10authorized as provided in this Act.
11    "Owners license" means a license to conduct riverboat or
12casino gambling operations, but does not include an electronic
13gaming license.
14    "Licensed owner" means a person who holds an owners
15license.
16    "Casino operator license" means the license held by the
17person or entity selected by the Authority and approved by the
18Board to manage and operate a riverboat or casino within the
19geographic area of the authorized municipality pursuant to this
20Act and the Chicago Casino Development Authority Act.
21(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
 
22    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
23    Sec. 5. Gaming Board.
24    (a) (1) There is hereby established the Illinois Gaming
25Board, which shall have the powers and duties specified in this

 

 

09700SB0747sam001- 213 -LRB097 04468 AEK 59057 a

1Act, and all other powers necessary and proper to fully and
2effectively execute this Act for the purpose of administering,
3regulating, and enforcing the system of riverboat and casino
4gambling established by this Act. Its jurisdiction shall extend
5under this Act to every person, association, corporation,
6partnership and trust involved in riverboat and casino gambling
7operations in the State of Illinois.
8    (2) The Board shall consist of 5 members to be appointed by
9the Governor with the advice and consent of the Senate, one of
10whom shall be designated by the Governor to be chairperson
11chairman. Each member shall have a reasonable knowledge of the
12practice, procedure and principles of gambling operations.
13Each member shall either be a resident of Illinois or shall
14certify that he or she will become a resident of Illinois
15before taking office.
16     The Board must include the following:
17        (A) One member who has received, at a minimum, a
18    bachelor's degree from an accredited school and at least 10
19    years of verifiable training and experience in the fields
20    of investigation and law enforcement.
21        (B) One member who is a certified public accountant
22    with experience in auditing and with knowledge of complex
23    corporate structures and transactions.
24        (C) One member who has 5 years' experience as a
25    principal, senior officer, or director of a company or
26    bus