Rep. Lou Lang

Filed: 11/7/2011

 

 


 

 


 
09700SB1849ham002LRB097 07133 AMC 59587 a

1
AMENDMENT TO SENATE BILL 1849

2    AMENDMENT NO. ______. Amend Senate Bill 1849 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 contract with other
4third parties in order to fulfill its purpose. The Authority is
5responsible for the payment of any fees required of a casino
6operator under subsection (a) of Section 7.8 of the Illinois
7Gambling Act if the casino operator licensee is late in paying
8any such fees. The Authority is granted all rights and powers
9necessary to perform such duties. The Authority and casino
10operator licensee are subject to the Illinois Gambling Act and
11all of the rules of the Gaming Board.
 
12    Section 1-15. Board.
13    (a) The governing and administrative powers of the
14Authority shall be vested in a body known as the Chicago Casino
15Development Board. The Board shall consist of 5 members
16appointed by the Mayor. All appointees shall be subject to
17background investigation and approval by the Gaming Board. One
18of these members shall be designated by the Mayor to serve as
19chairperson. All of the members appointed by the Mayor shall be
20residents of the City.
21    (b) Board members shall receive $300 for each day the
22Authority meets and shall be entitled to reimbursement of
23reasonable expenses incurred in the performance of their
24official duties. A Board member who serves in the office of
25secretary-treasurer may also receive compensation for services

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1employee of the Authority may not, while the person is a Board
2member or employee of the spouse or within a period of 2 years
3immediately after termination of employment, knowingly accept
4employment or receive compensation or fees for services from a
5person or entity, or its parent or affiliate, that has engaged
6in business with the Authority that resulted in contracts with
7an aggregate value of at least $25,000 or if that Board member
8or employee has made a decision that directly applied to the
9person or entity, or its parent or affiliate.
10    (l) No Board member or employee of the Authority may
11attempt, in any way, to influence any person or corporation
12doing business with the Authority or any officer, agent, or
13employee thereof to hire or contract with any person or
14corporation for any compensated work.
15    (m) Any communication between an elected official of the
16City and any applicant for or party to a casino management
17contract with the Authority, or an officer, director, or
18employee thereof, concerning any matter relating in any way to
19gaming or the Authority shall be disclosed to the Board and the
20Gaming Board. Such disclosure shall be in writing by the
21official within 30 days after the communication and shall be
22filed with the Board. Disclosure must consist of the date of
23the communication, the identity and job title of the person
24with whom the communication was made, a brief summary of the
25communication, the action requested or recommended, all
26responses made, the identity and job title of the person making

 

 

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

 

 

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

 

 

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1for a casino management contract or an executed casino
2management contract must be transmitted to the State and
3deposited into the Gaming Facilities Fee Revenue Fund. The
4initial consideration shall not include any amounts paid by an
5entity on behalf of the Authority for any license or per
6position fees imposed pursuant to the Illinois Gambling Act or
7any other financial obligation of the Authority.
 
8    Section 1-50. Transfer of funds. The revenues received by
9the Authority (other than amounts required to be paid pursuant
10to the Illinois Gambling Act and amounts required to pay the
11operating expenses of the Authority, to pay amounts due the
12casino operator licensee pursuant to a casino management
13contract, to repay any borrowing of the Authority made pursuant
14to Section 1-31, to pay debt service on any bonds issued under
15Section 1-75, and to pay any expenses in connection with the
16issuance of such bonds pursuant to Section 1-75 or derivative
17products pursuant to Section 1-85) shall be transferred to the
18City by the Authority. Moneys transferred to the City pursuant
19to this Section shall be expended or obligated by the City for
20the construction and maintenance of infrastructure and for
21related purposes within the City. Such infrastructure may
22include, but is not limited to, roads, bridges, transit
23infrastructure, water and sewer infrastructure, schools,
24parks, and municipal facilities.
 

 

 

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1    Section 1-60. Auditor General.
2    (a) Prior to the issuance of bonds under this Act, the
3Authority shall submit to the Auditor General a certification
4that:
5        (1) it is legally authorized to issue bonds;
6        (2) scheduled annual payments of principal and
7    interest on the bonds to be issued meet the requirements of
8    Section 1-75 of this Act;
9        (3) no bond shall mature later than 30 years; and
10        (4) after payment of costs of issuance and necessary
11    deposits to funds and accounts established with respect to
12    debt service on the bonds, the net bond proceeds (exclusive
13    of any proceeds to be used to refund outstanding bonds)
14    will be used only for the purposes set forth in this Act.
15    The Authority also shall submit to the Auditor General its
16projections on revenues to be generated and pledged to
17repayment of the bonds as scheduled and such other information
18as the Auditor General may reasonably request.
19    The Auditor General shall examine the certifications and
20information submitted and submit a report to the Authority and
21the Gaming Board indicating whether the required
22certifications, projections, and other information have been
23submitted by the Authority and that the assumptions underlying
24the projections are not unreasonable in the aggregate. The
25Auditor General shall submit the report no later than 60 days
26after receiving the information required to be submitted by the

 

 

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1Authority.
2    The Authority shall not issue bonds until it receives the
3report from the Auditor General indicating the requirements of
4this Section have been met. The Auditor General's report shall
5not be in the nature of a post-audit or examination and shall
6not lead to the issuance of an opinion, as that term is defined
7in generally accepted government auditing standards. The
8Auditor General shall submit a bill to the Authority for costs
9associated with the examinations and report required under this
10Section. The Authority shall reimburse in a timely manner.
11    (b) The Authority shall enter into an intergovernmental
12agreement with the Auditor General authorizing the Auditor
13General to, every 2 years, (i) review the financial audit of
14the Authority performed by the Authority's certified public
15accountants, (ii) perform a management audit of the Authority,
16and (iii) perform a management audit of the casino operator
17licensee. The Auditor General shall provide the Authority and
18the General Assembly with the audits and shall post a copy on
19his or her website. The Auditor General shall submit a bill to
20the Authority for costs associated with the review and the
21audit required under this Section, which costs shall not exceed
22$100,000, and the Authority shall reimburse the Auditor General
23for such costs in a timely manner.
 
24    Section 1-62. Advisory committee. An Advisory Committee is
25established to monitor, review, and report on (1) the

 

 

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1Authority's utilization of minority-owned business enterprises
2and female-owned business enterprises, (2) employment of
3females, and (3) employment of minorities with regard to the
4development and construction of the casino as authorized under
5Section 7 of the Illinois Gambling Act. The Authority shall
6work with the Advisory Committee in accumulating necessary
7information for the Committee to submit reports, as necessary,
8to the General Assembly and to the City.
9    The Committee shall consist of 9 members as provided in
10this Section. Five members shall be selected by the Governor
11and 4 members shall be selected by the Mayor of the City of
12Chicago. The Governor and Mayor of the City of Chicago shall
13each appoint at least one current member of the General
14Assembly. The Advisory Committee shall meet periodically and
15shall report the information to the Mayor of the City and to
16the General Assembly by December 31st of every year.
17    The Advisory Committee shall be dissolved on the date that
18casino gambling operations are first conducted at a permanent
19facility under the license authorized under Section 7 of the
20Illinois Gambling Act. For the purposes of this Section, the
21terms "female" and "minority person" have the meanings provided
22in Section 2 of the Business Enterprise for Minorities,
23Females, and Persons with Disabilities Act.
 
24    Section 1-65. Acquisition of property; eminent domain
25proceedings. For the lawful purposes of this Act, the City may

 

 

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1acquire by eminent domain or by condemnation proceedings in the
2manner provided by the Eminent Domain Act, real or personal
3property or interests in real or personal property located in
4the City, and the City may convey to the Authority property so
5acquired. The acquisition of property under this Section is
6declared to be for a public use.
 
7    Section 1-67. Limitations on gaming at Chicago airports.
8The Authority may not conduct gaming operations in or at an
9airport.
 
10    Section 1-70. Local regulation. The casino facilities and
11operations therein shall be subject to all ordinances and
12regulations of the City. The construction, development, and
13operation of the casino shall comply with all ordinances,
14regulations, rules, and controls of the City, including but not
15limited to those relating to zoning and planned development,
16building, fire prevention, and land use. However, the
17regulation of gaming operations is subject to the exclusive
18jurisdiction of the Gaming Board.
 
19    Section 1-75. Borrowing.
20    (a) The Authority may borrow money and issue bonds as
21provided in this Section. Bonds of the Authority may be issued
22to provide funds for land acquisition, site assembly and
23preparation, and the design and construction of the casino, as

 

 

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

 

 

09700SB1849ham002- 22 -LRB097 07133 AMC 59587 a

1or trust indenture; (vii) proceeds of refunding bonds; (viii)
2any other revenues derived from or payments by the City; and
3(ix) any payments by any casino operator licensee or others
4pursuant to any guaranty agreement.
5    (c) Bonds shall be authorized by a resolution of the
6Authority and may be secured by a trust indenture by and
7between the Authority and a corporate trustee or trustees,
8which may be any trust company or bank having the powers of a
9trust company within or without the State. Bonds shall meet the
10following requirements:
11        (1) Bonds shall bear interest at a rate not to exceed
12    the maximum rate authorized by the Bond Authorization Act.
13        (2) Bonds issued pursuant to this Section may be
14    payable on such dates and times as may be provided for by
15    the resolution or indenture authorizing the issuance of
16    such bonds; provided, however, that such bonds shall mature
17    no later than 30 years from the date of issuance.
18        (3) At least 25%, based on total principal amount, of
19    all bonds issued pursuant to this Section shall be sold
20    pursuant to notice of sale and public bid. No more than
21    75%, based on total principal amount, of all bonds issued
22    pursuant to this Section shall be sold by negotiated sale.
23        (4) Bonds shall be payable at a time or times, in the
24    denominations and form, including book entry form, either
25    coupon, registered, or both, and carry the registration and
26    privileges as to exchange, transfer or conversion, and

 

 

09700SB1849ham002- 23 -LRB097 07133 AMC 59587 a

1    replacement of mutilated, lost, or destroyed bonds as the
2    resolution or trust indenture may provide.
3        (5) Bonds shall be payable in lawful money of the
4    United States at a designated place.
5        (6) Bonds shall be subject to the terms of purchase,
6    payment, redemption, refunding, or refinancing that the
7    resolution or trust indenture provides.
8        (7) Bonds shall be executed by the manual or facsimile
9    signatures of the officers of the Authority designated by
10    the Board, which signatures shall be valid at delivery even
11    for one who has ceased to hold office.
12        (8) Bonds shall be sold at public or private sale in
13    the manner and upon the terms determined by the Authority.
14        (9) Bonds shall be issued in accordance with the
15    provisions of the Local Government Debt Reform Act.
16    (d) The Authority shall adopt a procurement program with
17respect to contracts relating to underwriters, bond counsel,
18financial advisors, and accountants. The program shall include
19goals for the payment of not less than 30% of the total dollar
20value of the fees from these contracts to minority-owned
21businesses and female-owned businesses as defined in the
22Business Enterprise for Minorities, Females, and Persons with
23Disabilities Act. The Authority shall conduct outreach to
24minority-owned businesses and female-owned businesses.
25Outreach shall include, but is not limited to, advertisements
26in periodicals and newspapers, mailings, and other appropriate

 

 

09700SB1849ham002- 24 -LRB097 07133 AMC 59587 a

1media. The Authority shall submit to the General Assembly a
2comprehensive report that shall include, at a minimum, the
3details of the procurement plan, outreach efforts, and the
4results of the efforts to achieve goals for the payment of
5fees.
6    (e) Subject to the Illinois Gambling Act and rules of the
7Gaming Board regarding pledging of interests in holders of
8owners licenses, any resolution or trust indenture may contain
9provisions that may be a part of the contract with the holders
10of the bonds as to the following:
11        (1) Pledging, assigning, or directing the use,
12    investment, or disposition of revenues of the Authority or
13    proceeds or benefits of any contract, including without
14    limitation any rights in any casino management contract.
15        (2) The setting aside of loan funding deposits, debt
16    service reserves, replacement or operating reserves, cost
17    of issuance accounts and sinking funds, and the regulation,
18    investment, and disposition thereof.
19        (3) Limitations on the purposes to which or the
20    investments in which the proceeds of sale of any issue of
21    bonds or the Authority's revenues and receipts may be
22    applied or made.
23        (4) Limitations on the issue of additional bonds, the
24    terms upon which additional bonds may be issued and
25    secured, the terms upon which additional bonds may rank on
26    a parity with, or be subordinate or superior to, other

 

 

09700SB1849ham002- 25 -LRB097 07133 AMC 59587 a

1    bonds.
2        (5) The refunding, advance refunding, or refinancing
3    of outstanding bonds.
4        (6) The procedure, if any, by which the terms of any
5    contract with bondholders may be altered or amended and the
6    amount of bonds and holders of which must consent thereto
7    and the manner in which consent shall be given.
8        (7) Defining the acts or omissions that shall
9    constitute a default in the duties of the Authority to
10    holders of bonds and providing the rights or remedies of
11    such holders in the event of a default, which may include
12    provisions restricting individual rights of action by
13    bondholders.
14        (8) Providing for guarantees, pledges of property,
15    letters of credit, or other security, or insurance for the
16    benefit of bondholders.
17    (f) No member of the Board, nor any person executing the
18bonds, shall be liable personally on the bonds or subject to
19any personal liability by reason of the issuance of the bonds.
20    (g) The Authority may issue and secure bonds in accordance
21with the provisions of the Local Government Credit Enhancement
22Act.
23    (h) A pledge by the Authority of revenues and receipts as
24security for an issue of bonds or for the performance of its
25obligations under any casino management contract shall be valid
26and binding from the time when the pledge is made. The revenues

 

 

09700SB1849ham002- 26 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 27 -LRB097 07133 AMC 59587 a

1and powers vested in the Authority by this Act so as to impair
2the terms of any contract made by the Authority with the owners
3or in any way impair the rights and remedies of the owners
4until the bonds, together with interest on them, and all costs
5and expenses in connection with any action or proceedings by or
6on behalf of the owners, are fully met and discharged. The
7Authority is authorized to include this pledge and agreement in
8any contract with the owners of bonds issued under this
9Section.
10    (l) No person holding an elective office in this State,
11holding a seat in the General Assembly, or serving as a board
12member, trustee, officer, or employee of the Authority,
13including the spouse of that person, may receive a legal,
14banking, consulting, or other fee related to the issuance of
15bonds. This prohibition shall also apply to a company or firm
16that employs a person holding an elective office in this State,
17holding a seat in the General Assembly, or serving as a board
18member, trustee, officer, or employee of the Authority,
19including the spouse of that person, if the person or his or
20her spouse has greater than 7.5% ownership of the company or
21firm.
 
22    Section 1-85. Derivative products. With respect to all or
23part of any issue of its bonds, the Authority may enter into
24agreements or contracts with any necessary or appropriate
25person, which will have the benefit of providing to the

 

 

09700SB1849ham002- 28 -LRB097 07133 AMC 59587 a

1Authority an interest rate basis, cash flow basis, or other
2basis different from that provided in the bonds for the payment
3of interest. Such agreements or contracts may include, without
4limitation, agreements or contracts commonly known as
5"interest rate swap agreements", "forward payment conversion
6agreements", "futures", "options", "puts", or "calls" and
7agreements or contracts providing for payments based on levels
8of or changes in interest rates, agreements or contracts to
9exchange cash flows or a series of payments, or to hedge
10payment, rate spread, or similar exposure.
 
11    Section 1-90. Legality for investment. The State of
12Illinois, all governmental entities, all public officers,
13banks, bankers, trust companies, savings banks and
14institutions, building and loan associations, savings and loan
15associations, investment companies, and other persons carrying
16on a banking business, insurance companies, insurance
17associations, and other persons carrying on an insurance
18business, and all executors, administrators, guardians,
19trustees, and other fiduciaries may legally invest any sinking
20funds, moneys, or other funds belonging to them or within their
21control in any bonds issued under this Act. However, nothing in
22this Section shall be construed as relieving any person, firm,
23or corporation from any duty of exercising reasonable care in
24selecting securities for purchase or investment.
 

 

 

09700SB1849ham002- 29 -LRB097 07133 AMC 59587 a

1    Section 1-105. Budgets and reporting.
2    (a) The Board shall annually adopt a budget for each fiscal
3year. The budget may be modified from time to time in the same
4manner and upon the same vote as it may be adopted. The budget
5shall include the Authority's available funds and estimated
6revenues and shall provide for payment of its obligations and
7estimated expenditures for the fiscal year, including, without
8limitation, expenditures for administration, operation,
9maintenance and repairs, debt service, and deposits into
10reserve and other funds and capital projects.
11    (b) The Board shall annually cause the finances of the
12Authority to be audited by a firm of certified public
13accountants selected by the Board in accordance with the rules
14of the Gaming Board and post the firm's audits of the Authority
15on the Authority's Internet website.
16    (c) The Board shall, for each fiscal year, prepare an
17annual report setting forth information concerning its
18activities in the fiscal year and the status of the development
19of the casino. The annual report shall include the audited
20financial statements of the Authority for the fiscal year, the
21budget for the succeeding fiscal year, and the current capital
22plan as of the date of the report. Copies of the annual report
23shall be made available to persons who request them and shall
24be submitted not later than 120 days after the end of the
25Authority's fiscal year or, if the audit of the Authority's
26financial statements is not completed within 120 days after the

 

 

09700SB1849ham002- 30 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 31 -LRB097 07133 AMC 59587 a

1purposes with the same effect as if he or she had remained in
2office until delivery thereof.
 
3    Section 1-112. Contracts with the Authority or casino
4operator licensee; disclosure requirements.
5    (a) A bidder, respondent, offeror, or contractor for
6contracts with the Authority or casino operator licensee shall
7disclose the identity of all officers and directors and every
8owner, beneficiary, or person with beneficial interest of more
9than 1% or shareholder entitled to receive more than 1% of the
10total distributable income of any corporation having any
11interest in the contract or in the bidder, respondent, offeror,
12or contractor. The disclosure shall be in writing and attested
13to by an owner, trustee, corporate official, or agent. If stock
14in a corporation is publicly traded and there is no readily
15known individual having greater than a 1% interest, then a
16statement to that effect attested to by an officer or agent of
17the corporation shall fulfill the disclosure statement
18requirement of this Section. A bidder, respondent, offeror, or
19contractor shall notify the Authority of any changes in
20officers, directors, ownership, or individuals having a
21beneficial interest of more than 1%.
22    (b) A bidder, respondent, offeror, or contractor for
23contracts with an annual value of $10,000 or more or for a
24period to exceed one year shall disclose all political
25contributions of the bidder, respondent, offeror, or

 

 

09700SB1849ham002- 32 -LRB097 07133 AMC 59587 a

1contractor and any affiliated person or entity. Disclosure
2shall include at least the names and addresses of the
3contributors and the dollar amounts of any contributions to any
4political committee made within the previous 2 years. The
5disclosure must be submitted to the Gaming Board with a copy of
6the contract.
7    (c) As used in this Section:
8    "Contribution" means contribution as defined in Section
99-1.4 of the Election Code.
10    "Affiliated person" means (i) any person with any ownership
11interest or distributive share of the bidding, responding, or
12contracting entity in excess of 1%, (ii) executive employees of
13the bidding, responding, or contracting entity, and (iii) the
14spouse and minor children of any such persons.
15    "Affiliated entity" means (i) any parent or subsidiary of
16the bidding or contracting entity, (ii) any member of the same
17unitary business group, or (iii) any political committee for
18which the bidding, responding, or contracting entity is the
19sponsoring entity.
20    (d) The Gaming Board may direct the Authority or a casino
21operator licensee to void a contract if a violation of this
22Section occurs. The Authority may direct a casino operator
23licensee to void a contract if a violation of this Section
24occurs.
25    (e) All contracts pertaining to the actual operation of the
26casino and related gaming activities shall be entered into by

 

 

09700SB1849ham002- 33 -LRB097 07133 AMC 59587 a

1the casino operator licensee and not the Authority.
 
2    Section 1-115. Purchasing.
3    (a) All construction contracts and contracts for supplies,
4materials, equipment, and services, when the cost thereof to
5the Authority exceeds $25,000, shall be let by a competitive
6selection process to the lowest responsible proposer, after
7advertising for proposals, except for the following:
8        (1) when repair parts, accessories, equipment, or
9    services are required for equipment or services previously
10    furnished or contracted for;
11        (2) when services such as water, light, heat, power,
12    telephone (other than long-distance service), or telegraph
13    are required;
14        (3) casino management contracts, which shall be
15    awarded as set forth in Section 1-45 of this Act;
16        (4) contracts where there is only one economically
17    feasible source; and
18        (5) when a purchase is needed on an immediate,
19    emergency basis because there exists a threat to public
20    health or public safety, or when immediate expenditure is
21    necessary for repairs to Authority property in order to
22    protect against further loss of or damage to Authority
23    property, to prevent or minimize serious disruption in
24    Authority services or to ensure the integrity of Authority
25    records.

 

 

09700SB1849ham002- 34 -LRB097 07133 AMC 59587 a

1    (b) All contracts involving less than $25,000 shall be let
2by competitive selection process whenever possible, and in any
3event in a manner calculated to ensure the best interests of
4the public.
5    (c) In determining the responsibility of any proposer, the
6Authority may take into account the proposer's (or an
7individual having a beneficial interest, directly or
8indirectly, of more than 1% in such proposing entity) past
9record of dealings with the Authority, the proposer's
10experience, adequacy of equipment, and ability to complete
11performance within the time set, and other factors besides
12financial responsibility. No such contract shall be awarded to
13any proposer other than the lowest proposer (in case of
14purchase or expenditure) unless authorized or approved by a
15vote of at least 3 members of the Board and such action is
16accompanied by a written statement setting forth the reasons
17for not awarding the contract to the highest or lowest
18proposer, as the case may be. The statement shall be kept on
19file in the principal office of the Authority and open to
20public inspection.
21    (d) The Authority shall have the right to reject all
22proposals and to re-advertise for proposals. If after any such
23re-advertisement, no responsible and satisfactory proposals,
24within the terms of the re-advertisement, is received, the
25Authority may award such contract without competitive
26selection, provided that the Gaming Board must approve the

 

 

09700SB1849ham002- 35 -LRB097 07133 AMC 59587 a

1contract prior to its execution. The contract must not be less
2advantageous to the Authority than any valid proposal received
3pursuant to advertisement.
4    (e) Advertisements for proposals and re-proposals shall be
5published at least once in a daily newspaper of general
6circulation published in the City at least 10 calendar days
7before the time for receiving proposals and in an online
8bulletin published on the Authority's website. Such
9advertisements shall state the time and place for receiving and
10opening of proposals and, by reference to plans and
11specifications on file at the time of the first publication or
12in the advertisement itself, shall describe the character of
13the proposed contract in sufficient detail to fully advise
14prospective proposers of their obligations and to ensure free
15and open competitive selection.
16    (f) All proposals in response to advertisements shall be
17sealed and shall be publicly opened by the Authority. All
18proposers shall be entitled to be present in person or by
19representatives. Cash or a certified or satisfactory cashier's
20check, as a deposit of good faith, in a reasonable amount to be
21fixed by the Authority before advertising for proposals, shall
22be required with the proposal. A bond for faithful performance
23of the contract with surety or sureties satisfactory to the
24Authority and adequate insurance may be required in reasonable
25amounts to be fixed by the Authority before advertising for
26proposals.

 

 

09700SB1849ham002- 36 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 37 -LRB097 07133 AMC 59587 a

1successful responsible proposer or offeror, the contract
2price, and the number of unsuccessful responsive proposers and
3any other disclosure specified in this Section. This notice
4must be posted in the online electronic bulletin prior to
5execution of the contract.
 
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

 

 

09700SB1849ham002- 38 -LRB097 07133 AMC 59587 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

 

 

09700SB1849ham002- 39 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 40 -LRB097 07133 AMC 59587 a

1    operational until July 2011, and as of November 1, 2011, no
2    such payments have been made.
3        (8) That allowing the State's horse racing venues,
4    currently licensed gaming destinations, to maximize their
5    capacities with gaming machines, would generate up to $120
6    million to $200 million for the State in the form of extra
7    licensing fees, plus an additional $100 million to $300
8    million in recurring annual tax revenue for the State to
9    help ensure that school, road, and other building projects
10    promised under the capital plan occur on schedule.
11        (9) That Illinois agriculture and other businesses
12    that support and supply the horse racing industry, already
13    a sector that employs over 37,000 Illinoisans, also stand
14    to substantially benefit and would be much more likely to
15    create additional jobs should Illinois horse racing once
16    again become competitive with other states.
17        (10) That by keeping these projects on track, the State
18    can be sure that significant job and economic growth will
19    in fact result from the previously enacted legislation.
20        (11) That gaming machines at Illinois horse racing
21    tracks would create an estimated 1,200 to 1,500 permanent
22    jobs, and an estimated capital investment of up to $200
23    million to $400 million at these race tracks would prompt
24    additional trade organization jobs necessary to construct
25    new facilities or remodel race tracks to operate electronic
26    gaming.
 

 

 

09700SB1849ham002- 41 -LRB097 07133 AMC 59587 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

 

 

09700SB1849ham002- 42 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 43 -LRB097 07133 AMC 59587 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1required by this Article. An appointing authority may not
2appoint a relative as an Executive Inspector General.
3    Each Executive Inspector General shall have the following
4qualifications:
5        (1) has not been convicted of any felony under the laws
6    of this State, another State, or the United States;
7        (2) has earned a baccalaureate degree from an
8    institution of higher education; and
9        (3) has 5 or more years of cumulative service (A) with
10    a federal, State, or local law enforcement agency, at least
11    2 years of which have been in a progressive investigatory
12    capacity; (B) as a federal, State, or local prosecutor; (C)
13    as a senior manager or executive of a federal, State, or
14    local agency; (D) as a member, an officer, or a State or
15    federal judge; or (E) representing any combination of (A)
16    through (D).
17    The term of each initial Executive Inspector General shall
18commence upon qualification and shall run through June 30,
192008. The initial appointments shall be made within 60 days
20after the effective date of this Act.
21    After the initial term, each Executive Inspector General
22shall serve for 5-year terms commencing on July 1 of the year
23of appointment and running through June 30 of the fifth
24following year. An Executive Inspector General may be
25reappointed to one or more subsequent terms.
26    A vacancy occurring other than at the end of a term shall

 

 

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

 

 

09700SB1849ham002- 50 -LRB097 07133 AMC 59587 a

1under the jurisdiction of the Executive Ethics Commission and
2not within the jurisdiction of the Attorney General, the
3Secretary of State, the Comptroller, or the Treasurer, or the
4Executive Inspector General for gaming activities, and (iv) all
5board members and employees of the Regional Transit Boards and
6all vendors and others doing business with the Regional Transit
7Boards. The Executive Inspector General for gaming activities
8appointed by the Governor has jurisdiction over the Illinois
9Gaming Board, all officers and employees of the Illinois Gaming
10Board, and all activities of the Illinois Gaming 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

 

 

09700SB1849ham002- 52 -LRB097 07133 AMC 59587 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

 

 

09700SB1849ham002- 53 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 54 -LRB097 07133 AMC 59587 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

 

 

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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

 

 

09700SB1849ham002- 57 -LRB097 07133 AMC 59587 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

 

 

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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

 

 

09700SB1849ham002- 59 -LRB097 07133 AMC 59587 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

 

 

09700SB1849ham002- 60 -LRB097 07133 AMC 59587 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

 

 

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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, 6z-94, and
106z-95 and by changing Sections 6z-32 and 6z-77 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 State Fairgrounds Infrastructure
20Improvement Fund.
 

 

 

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

 

 

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

 

 

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1General Revenue Fund to the Partners for Conservation Fund, an
2amount equal to 1/10 of the amount set forth below in fiscal
3year 1996 and an amount equal to 1/12 of the amount set forth
4below in each of the other specified fiscal years:
5Fiscal Year Amount
61996$ 3,500,000
71997$ 9,000,000
81998$10,000,000
91999$11,000,000
102000$12,500,000
112001 through 2004$14,000,000
122005 $7,000,000
132006 $11,000,000
142007 $0
152008 through 2021........................ $14,000,000
16    (c) Notwithstanding any other provision of law to the
17contrary and in addition to any other transfers that may be
18provided for by law, on the last day of each month beginning on
19July 31, 2006 and ending on June 30, 2007, or as soon
20thereafter as may be practical, the State Comptroller shall
21direct and the State Treasurer shall transfer $1,000,000 from
22the Open Space Lands Acquisition and Development Fund to the
23Conservation 2000 Fund.
24    (d) There shall be deposited into the Partners for
25Conservation Projects Fund such bond proceeds and other moneys
26as may, from time to time, be provided by law.

 

 

09700SB1849ham002- 81 -LRB097 07133 AMC 59587 a

1    (e) Revenues deposited into the Fund pursuant to subsection
2(b-12) of Section 13 of the Illinois Gambling Act shall be used
3solely for grants to soil and water conservation districts.
4Such revenues shall supplement, and not supplant, other State
5funding for soil and water conservation districts.
6(Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-139,
7eff. 1-1-08.)
 
8    (30 ILCS 105/6z-77)
9    Sec. 6z-77. The Capital Projects Fund.
10    (a) The Capital Projects Fund is created as a special fund
11in the State Treasury. The State Comptroller and State
12Treasurer shall transfer from the Capital Projects Fund to the
13General Revenue Fund $61,294,550 on October 1, 2009,
14$122,589,100 on January 1, 2010, and $61,294,550 on April 1,
152010. Beginning on July 1, 2010, and on July 1 and January 1 of
16each year thereafter, the State Comptroller and State Treasurer
17shall transfer the sum of $122,589,100 from the Capital
18Projects Fund to the General Revenue Fund.
19    (b) Subject to appropriation, the Capital Projects Fund may
20be used only for capital projects and the payment of debt
21service on bonds issued for capital projects and for transfers
22to the State Fairgrounds Infrastructure Improvement Fund. All
23interest earned on moneys in the Fund shall be deposited into
24the Fund. The Fund shall not be subject to administrative
25charges or chargebacks, such as but not limited to those

 

 

09700SB1849ham002- 82 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 83 -LRB097 07133 AMC 59587 a

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

 

 

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1Agriculture, subject to appropriation, solely for
2infrastructure improvements to the Illinois State Fairgrounds
3in Sangamon County. The Director of Agriculture shall annually
4certify the amount needed in the next fiscal year for such
5infrastructure improvements. Upon receipt of such
6certification, the Governor shall direct, and the State
7Comptroller and State Treasurer shall transfer the certified
8amount from the Capital Projects Fund to the State Fairgrounds
9Infrastructure Improvement Fund. The State Fairgrounds
10Infrastructure Improvement Fund is not subject to
11administrative chargebacks, including, but not limited to,
12those authorized under Section 8h of the State Finance Act.
 
13    (30 ILCS 105/6z-95 new)
14    Sec. 6z-95. The Future of Agriculture Fund. There is
15created the Future of Agriculture Fund, a special fund in the
16State treasury. Moneys in the Fund may be used by the
17Department of Agriculture, subject to appropriation, solely
18for grants to (1) county fairs, as defined by Section 2 of the
19Agricultural Fair Act, (2) the Illinois Association FFA, and
20(3) University of Illinois Extension 4-H programs. The Future
21of Agriculture Fund is not subject to administrative
22chargebacks, including, but not limited to, those authorized
23under Section 8h of the State Finance Act.
 
24    Section 90-20. The Illinois Income Tax Act is amended by

 

 

09700SB1849ham002- 85 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 86 -LRB097 07133 AMC 59587 a

1    taxable years beginning after June 30, 1989, and ending
2    prior to January 1, 2011, an amount equal to 3% of the
3    taxpayer's net income for the taxable year.
4        (4) In the case of an individual, trust, or estate, for
5    taxable years beginning prior to January 1, 2011, and
6    ending after December 31, 2010, an amount equal to the sum
7    of (i) 3% of the taxpayer's net income for the period prior
8    to January 1, 2011, as calculated under Section 202.5, and
9    (ii) 5% of the taxpayer's net income for the period after
10    December 31, 2010, as calculated under Section 202.5.
11        (5) In the case of an individual, trust, or estate, for
12    taxable years beginning on or after January 1, 2011, and
13    ending prior to January 1, 2015, an amount equal to 5% of
14    the taxpayer's net income for the taxable year.
15        (5.1) In the case of an individual, trust, or estate,
16    for taxable years beginning prior to January 1, 2015, and
17    ending after December 31, 2014, an amount equal to the sum
18    of (i) 5% of the taxpayer's net income for the period prior
19    to January 1, 2015, as calculated under Section 202.5, and
20    (ii) 3.75% of the taxpayer's net income for the period
21    after December 31, 2014, as calculated under Section 202.5.
22        (5.2) In the case of an individual, trust, or estate,
23    for taxable years beginning on or after January 1, 2015,
24    and ending prior to January 1, 2025, an amount equal to
25    3.75% of the taxpayer's net income for the taxable year.
26        (5.3) In the case of an individual, trust, or estate,

 

 

09700SB1849ham002- 87 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 88 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 89 -LRB097 07133 AMC 59587 a

1    (ii) 4.8% of the taxpayer's net income for the period after
2    December 31, 2024, as calculated under Section 202.5.
3        (14) In the case of a corporation, for taxable years
4    beginning on or after January 1, 2025, an amount equal to
5    4.8% of the taxpayer's net income for the taxable year.
6    The rates under this subsection (b) are subject to the
7provisions of Section 201.5.
8    (b-5) Surcharge; sale or exchange of assets, properties,
9and intangibles of electronic gaming licensees. For each of
10taxable years 2011 through 2019, a surcharge is imposed on all
11taxpayers on income arising from the sale or exchange of
12capital assets, depreciable business property, real property
13used in the trade or business, and Section 197 intangibles (i)
14of an organization licensee under the Illinois Horse Racing Act
15of 1975 and (ii) of an electronic gaming licensee under the
16Illinois Gambling Act. The amount of the surcharge is equal to
17the amount of federal income tax liability for the taxable year
18attributable to those sales and exchanges. The surcharge
19imposed shall not apply if:
20        (1) the electronic gaming license, organization
21    license, or race track property is transferred as a result
22    of any of the following:
23            (A) bankruptcy, a receivership, or a debt
24        adjustment initiated by or against the initial
25        licensee or the substantial owners of the initial
26        licensee;

 

 

09700SB1849ham002- 90 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 91 -LRB097 07133 AMC 59587 a

1license, or race track property by a person other than the
2initial licensee to receive the electronic gaming license is
3not subject to a surcharge. The Department shall adopt rules
4necessary to implement and administer this subsection.
5    (c) Personal Property Tax Replacement Income Tax.
6Beginning on July 1, 1979 and thereafter, in addition to such
7income tax, there is also hereby imposed the Personal Property
8Tax Replacement Income Tax measured by net income on every
9corporation (including Subchapter S corporations), partnership
10and trust, for each taxable year ending after June 30, 1979.
11Such taxes are imposed on the privilege of earning or receiving
12income in or as a resident of this State. The Personal Property
13Tax Replacement Income Tax shall be in addition to the income
14tax imposed by subsections (a) and (b) of this Section and in
15addition to all other occupation or privilege taxes imposed by
16this State or by any municipal corporation or political
17subdivision thereof.
18    (d) Additional Personal Property Tax Replacement Income
19Tax Rates. The personal property tax replacement income tax
20imposed by this subsection and subsection (c) of this Section
21in the case of a corporation, other than a Subchapter S
22corporation and except as adjusted by subsection (d-1), shall
23be an additional amount equal to 2.85% of such taxpayer's net
24income for the taxable year, except that beginning on January
251, 1981, and thereafter, the rate of 2.85% specified in this
26subsection shall be reduced to 2.5%, and in the case of a

 

 

09700SB1849ham002- 92 -LRB097 07133 AMC 59587 a

1partnership, trust or a Subchapter S corporation shall be an
2additional amount equal to 1.5% of such taxpayer's net income
3for the taxable year.
4    (d-1) Rate reduction for certain foreign insurers. In the
5case of a foreign insurer, as defined by Section 35A-5 of the
6Illinois Insurance Code, whose state or country of domicile
7imposes on insurers domiciled in Illinois a retaliatory tax
8(excluding any insurer whose premiums from reinsurance assumed
9are 50% or more of its total insurance premiums as determined
10under paragraph (2) of subsection (b) of Section 304, except
11that for purposes of this determination premiums from
12reinsurance do not include premiums from inter-affiliate
13reinsurance arrangements), beginning with taxable years ending
14on or after December 31, 1999, the sum of the rates of tax
15imposed by subsections (b) and (d) shall be reduced (but not
16increased) to the rate at which the total amount of tax imposed
17under this Act, net of all credits allowed under this Act,
18shall equal (i) the total amount of tax that would be imposed
19on the foreign insurer's net income allocable to Illinois for
20the taxable year by such foreign insurer's state or country of
21domicile if that net income were subject to all income taxes
22and taxes measured by net income imposed by such foreign
23insurer's state or country of domicile, net of all credits
24allowed or (ii) a rate of zero if no such tax is imposed on such
25income by the foreign insurer's state of domicile. For the
26purposes of this subsection (d-1), an inter-affiliate includes

 

 

09700SB1849ham002- 93 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 94 -LRB097 07133 AMC 59587 a

1    This subsection (d-1) is exempt from the provisions of
2Section 250.
3    (e) Investment credit. A taxpayer shall be allowed a credit
4against the Personal Property Tax Replacement Income Tax for
5investment in qualified property.
6        (1) A taxpayer shall be allowed a credit equal to .5%
7    of the basis of qualified property placed in service during
8    the taxable year, provided such property is placed in
9    service on or after July 1, 1984. There shall be allowed an
10    additional credit equal to .5% of the basis of qualified
11    property placed in service during the taxable year,
12    provided such property is placed in service on or after
13    July 1, 1986, and the taxpayer's base employment within
14    Illinois has increased by 1% or more over the preceding
15    year as determined by the taxpayer's employment records
16    filed with the Illinois Department of Employment Security.
17    Taxpayers who are new to Illinois shall be deemed to have
18    met the 1% growth in base employment for the first year in
19    which they file employment records with the Illinois
20    Department of Employment Security. The provisions added to
21    this Section by Public Act 85-1200 (and restored by Public
22    Act 87-895) shall be construed as declaratory of existing
23    law and not as a new enactment. If, in any year, the
24    increase in base employment within Illinois over the
25    preceding year is less than 1%, the additional credit shall
26    be limited to that percentage times a fraction, the

 

 

09700SB1849ham002- 95 -LRB097 07133 AMC 59587 a

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

 

 

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1    after December 31, 1988, the credit shall be allowed for
2    the tax year in which the property is placed in service,
3    or, if the amount of the credit exceeds the tax liability
4    for that year, whether it exceeds the original liability or
5    the liability as later amended, such excess may be carried
6    forward and applied to the tax liability of the 5 taxable
7    years following the excess credit years. The credit shall
8    be applied to the earliest year for which there is a
9    liability. If there is credit from more than one tax year
10    that is available to offset a liability, earlier credit
11    shall be applied first.
12        (2) The term "qualified property" means property
13    which:
14            (A) is tangible, whether new or used, including
15        buildings and structural components of buildings and
16        signs that are real property, but not including land or
17        improvements to real property that are not a structural
18        component of a building such as landscaping, sewer
19        lines, local access roads, fencing, parking lots, and
20        other appurtenances;
21            (B) is depreciable pursuant to Section 167 of the
22        Internal Revenue Code, except that "3-year property"
23        as defined in Section 168(c)(2)(A) of that Code is not
24        eligible for the credit provided by this subsection
25        (e);
26            (C) is acquired by purchase as defined in Section

 

 

09700SB1849ham002- 97 -LRB097 07133 AMC 59587 a

1        179(d) of the Internal Revenue Code;
2            (D) is used in Illinois by a taxpayer who is
3        primarily engaged in manufacturing, or in mining coal
4        or fluorite, or in retailing, or was placed in service
5        on or after July 1, 2006 in a River Edge Redevelopment
6        Zone established pursuant to the River Edge
7        Redevelopment Zone Act; and
8            (E) has not previously been used in Illinois in
9        such a manner and by such a person as would qualify for
10        the credit provided by this subsection (e) or
11        subsection (f).
12        (3) For purposes of this subsection (e),
13    "manufacturing" means the material staging and production
14    of tangible personal property by procedures commonly
15    regarded as manufacturing, processing, fabrication, or
16    assembling which changes some existing material into new
17    shapes, new qualities, or new combinations. For purposes of
18    this subsection (e) the term "mining" shall have the same
19    meaning as the term "mining" in Section 613(c) of the
20    Internal Revenue Code. For purposes of this subsection (e),
21    the term "retailing" means the sale of tangible personal
22    property for use or consumption and not for resale, or
23    services rendered in conjunction with the sale of tangible
24    personal property for use or consumption and not for
25    resale. For purposes of this subsection (e), "tangible
26    personal property" has the same meaning as when that term

 

 

09700SB1849ham002- 98 -LRB097 07133 AMC 59587 a

1    is used in the Retailers' Occupation Tax Act, and, for
2    taxable years ending after December 31, 2008, does not
3    include the generation, transmission, or distribution of
4    electricity.
5        (4) The basis of qualified property shall be the basis
6    used to compute the depreciation deduction for federal
7    income tax purposes.
8        (5) If the basis of the property for federal income tax
9    depreciation purposes is increased after it has been placed
10    in service in Illinois by the taxpayer, the amount of such
11    increase shall be deemed property placed in service on the
12    date of such increase in basis.
13        (6) The term "placed in service" shall have the same
14    meaning as under Section 46 of the Internal Revenue Code.
15        (7) If during any taxable year, any property ceases to
16    be qualified property in the hands of the taxpayer within
17    48 months after being placed in service, or the situs of
18    any qualified property is moved outside Illinois within 48
19    months after being placed in service, the Personal Property
20    Tax Replacement Income Tax for such taxable year shall be
21    increased. Such increase shall be determined by (i)
22    recomputing the investment credit which would have been
23    allowed for the year in which credit for such property was
24    originally allowed by eliminating such property from such
25    computation and, (ii) subtracting such recomputed credit
26    from the amount of credit previously allowed. For the

 

 

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1    purposes of this paragraph (7), a reduction of the basis of
2    qualified property resulting from a redetermination of the
3    purchase price shall be deemed a disposition of qualified
4    property to the extent of such reduction.
5        (8) Unless the investment credit is extended by law,
6    the basis of qualified property shall not include costs
7    incurred after December 31, 2013, except for costs incurred
8    pursuant to a binding contract entered into on or before
9    December 31, 2013.
10        (9) Each taxable year ending before December 31, 2000,
11    a partnership may elect to pass through to its partners the
12    credits to which the partnership is entitled under this
13    subsection (e) for the taxable year. A partner may use the
14    credit allocated to him or her under this paragraph only
15    against the tax imposed in subsections (c) and (d) of this
16    Section. If the partnership makes that election, those
17    credits shall be allocated among the partners in the
18    partnership in accordance with the rules set forth in
19    Section 704(b) of the Internal Revenue Code, and the rules
20    promulgated under that Section, and the allocated amount of
21    the credits shall be allowed to the partners for that
22    taxable year. The partnership shall make this election on
23    its Personal Property Tax Replacement Income Tax return for
24    that taxable year. The election to pass through the credits
25    shall be irrevocable.
26        For taxable years ending on or after December 31, 2000,

 

 

09700SB1849ham002- 100 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 101 -LRB097 07133 AMC 59587 a

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

 

 

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

 

 

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1    any qualified property is moved outside the Enterprise Zone
2    or River Edge Redevelopment Zone within 48 months after
3    being placed in service, the tax imposed under subsections
4    (a) and (b) of this Section for such taxable year shall be
5    increased. Such increase shall be determined by (i)
6    recomputing the investment credit which would have been
7    allowed for the year in which credit for such property was
8    originally allowed by eliminating such property from such
9    computation, and (ii) subtracting such recomputed credit
10    from the amount of credit previously allowed. For the
11    purposes of this paragraph (6), a reduction of the basis of
12    qualified property resulting from a redetermination of the
13    purchase price shall be deemed a disposition of qualified
14    property to the extent of such reduction.
15        (7) There shall be allowed an additional credit equal
16    to 0.5% of the basis of qualified property placed in
17    service during the taxable year in a River Edge
18    Redevelopment Zone, provided such property is placed in
19    service on or after July 1, 2006, and the taxpayer's base
20    employment within Illinois has increased by 1% or more over
21    the preceding year as determined by the taxpayer's
22    employment records filed with the Illinois Department of
23    Employment Security. Taxpayers who are new to Illinois
24    shall be deemed to have met the 1% growth in base
25    employment for the first year in which they file employment
26    records with the Illinois Department of Employment

 

 

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1    Security. If, in any year, the increase in base employment
2    within Illinois over the preceding year is less than 1%,
3    the additional credit shall be limited to that percentage
4    times a fraction, the numerator of which is 0.5% and the
5    denominator of which is 1%, but shall not exceed 0.5%.
6    (g) Jobs Tax Credit; Enterprise Zone, River Edge
7Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
8        (1) A taxpayer conducting a trade or business in an
9    enterprise zone or a High Impact Business designated by the
10    Department of Commerce and Economic Opportunity or for
11    taxable years ending on or after December 31, 2006, in a
12    River Edge Redevelopment Zone conducting a trade or
13    business in a federally designated Foreign Trade Zone or
14    Sub-Zone shall be allowed a credit against the tax imposed
15    by subsections (a) and (b) of this Section in the amount of
16    $500 per eligible employee hired to work in the zone during
17    the taxable year.
18        (2) To qualify for the credit:
19            (A) the taxpayer must hire 5 or more eligible
20        employees to work in an enterprise zone, River Edge
21        Redevelopment Zone, or federally designated Foreign
22        Trade Zone or Sub-Zone during the taxable year;
23            (B) the taxpayer's total employment within the
24        enterprise zone, River Edge Redevelopment Zone, or
25        federally designated Foreign Trade Zone or Sub-Zone
26        must increase by 5 or more full-time employees beyond

 

 

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

 

 

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1            (D) A full-time employee working 30 or more hours
2        per week.
3        (4) For tax years ending on or after December 31, 1985
4    and prior to December 31, 1988, the credit shall be allowed
5    for the tax year in which the eligible employees are hired.
6    For tax years ending on or after December 31, 1988, the
7    credit shall be allowed for the tax year immediately
8    following the tax year in which the eligible employees are
9    hired. If the amount of the credit exceeds the tax
10    liability for that year, whether it exceeds the original
11    liability or the liability as later amended, such excess
12    may be carried forward and applied to the tax liability of
13    the 5 taxable years following the excess credit year. The
14    credit shall be applied to the earliest year for which
15    there is a liability. If there is credit from more than one
16    tax year that is available to offset a liability, earlier
17    credit shall be applied first.
18        (5) The Department of Revenue shall promulgate such
19    rules and regulations as may be deemed necessary to carry
20    out the purposes of this subsection (g).
21        (6) The credit shall be available for eligible
22    employees hired on or after January 1, 1986.
23    (h) Investment credit; High Impact Business.
24        (1) Subject to subsections (b) and (b-5) of Section 5.5
25    of the Illinois Enterprise Zone Act, a taxpayer shall be
26    allowed a credit against the tax imposed by subsections (a)

 

 

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1    and (b) of this Section for investment in qualified
2    property which is placed in service by a Department of
3    Commerce and Economic Opportunity designated High Impact
4    Business. The credit shall be .5% of the basis for such
5    property. The credit shall not be available (i) until the
6    minimum investments in qualified property set forth in
7    subdivision (a)(3)(A) of Section 5.5 of the Illinois
8    Enterprise Zone Act have been satisfied or (ii) until the
9    time authorized in subsection (b-5) of the Illinois
10    Enterprise Zone Act for entities designated as High Impact
11    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
12    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
13    Act, and shall not be allowed to the extent that it would
14    reduce a taxpayer's liability for the tax imposed by
15    subsections (a) and (b) of this Section to below zero. The
16    credit applicable to such investments shall be taken in the
17    taxable year in which such investments have been completed.
18    The credit for additional investments beyond the minimum
19    investment by a designated high impact business authorized
20    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
21    Enterprise Zone Act shall be available only in the taxable
22    year in which the property is placed in service and shall
23    not be allowed to the extent that it would reduce a
24    taxpayer's liability for the tax imposed by subsections (a)
25    and (b) of this Section to below zero. For tax years ending
26    on or after December 31, 1987, the credit shall be allowed

 

 

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1    for the tax year in which the property is placed in
2    service, or, if the amount of the credit exceeds the tax
3    liability for that year, whether it exceeds the original
4    liability or the liability as later amended, such excess
5    may be carried forward and applied to the tax liability of
6    the 5 taxable years following the excess credit year. The
7    credit shall be applied to the earliest year for which
8    there is a liability. If there is credit from more than one
9    tax year that is available to offset a liability, the
10    credit accruing first in time shall be applied first.
11        Changes made in this subdivision (h)(1) by Public Act
12    88-670 restore changes made by Public Act 85-1182 and
13    reflect existing law.
14        (2) The term qualified property means property which:
15            (A) is tangible, whether new or used, including
16        buildings and structural components of buildings;
17            (B) is depreciable pursuant to Section 167 of the
18        Internal Revenue Code, except that "3-year property"
19        as defined in Section 168(c)(2)(A) of that Code is not
20        eligible for the credit provided by this subsection
21        (h);
22            (C) is acquired by purchase as defined in Section
23        179(d) of the Internal Revenue Code; and
24            (D) is not eligible for the Enterprise Zone
25        Investment Credit provided by subsection (f) of this
26        Section.

 

 

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1        (3) The basis of qualified property shall be the basis
2    used to compute the depreciation deduction for federal
3    income tax purposes.
4        (4) If the basis of the property for federal income tax
5    depreciation purposes is increased after it has been placed
6    in service in a federally designated Foreign Trade Zone or
7    Sub-Zone located in Illinois by the taxpayer, the amount of
8    such increase shall be deemed property placed in service on
9    the date of such increase in basis.
10        (5) The term "placed in service" shall have the same
11    meaning as under Section 46 of the Internal Revenue Code.
12        (6) If during any taxable year ending on or before
13    December 31, 1996, any property ceases to be qualified
14    property in the hands of the taxpayer within 48 months
15    after being placed in service, or the situs of any
16    qualified property is moved outside Illinois within 48
17    months after being placed in service, the tax imposed under
18    subsections (a) and (b) of this Section for such taxable
19    year shall be increased. Such increase shall be determined
20    by (i) recomputing the investment credit which would have
21    been allowed for the year in which credit for such property
22    was originally allowed by eliminating such property from
23    such computation, and (ii) subtracting such recomputed
24    credit from the amount of credit previously allowed. For
25    the purposes of this paragraph (6), a reduction of the
26    basis of qualified property resulting from a

 

 

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1    redetermination of the purchase price shall be deemed a
2    disposition of qualified property to the extent of such
3    reduction.
4        (7) Beginning with tax years ending after December 31,
5    1996, if a taxpayer qualifies for the credit under this
6    subsection (h) and thereby is granted a tax abatement and
7    the taxpayer relocates its entire facility in violation of
8    the explicit terms and length of the contract under Section
9    18-183 of the Property Tax Code, the tax imposed under
10    subsections (a) and (b) of this Section shall be increased
11    for the taxable year in which the taxpayer relocated its
12    facility by an amount equal to the amount of credit
13    received by the taxpayer under this subsection (h).
14    (i) Credit for Personal Property Tax Replacement Income
15Tax. For tax years ending prior to December 31, 2003, a credit
16shall be allowed against the tax imposed by subsections (a) and
17(b) of this Section for the tax imposed by subsections (c) and
18(d) of this Section. This credit shall be computed by
19multiplying the tax imposed by subsections (c) and (d) of this
20Section by a fraction, the numerator of which is base income
21allocable to Illinois and the denominator of which is Illinois
22base income, and further multiplying the product by the tax
23rate imposed by subsections (a) and (b) of this Section.
24    Any credit earned on or after December 31, 1986 under this
25subsection which is unused in the year the credit is computed
26because it exceeds the tax liability imposed by subsections (a)

 

 

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1and (b) for that year (whether it exceeds the original
2liability or the liability as later amended) may be carried
3forward and applied to the tax liability imposed by subsections
4(a) and (b) of the 5 taxable years following the excess credit
5year, provided that no credit may be carried forward to any
6year ending on or after December 31, 2003. This credit shall be
7applied first to the earliest year for which there is a
8liability. If there is a credit under this subsection from more
9than one tax year that is available to offset a liability the
10earliest credit arising under this subsection shall be applied
11first.
12    If, during any taxable year ending on or after December 31,
131986, the tax imposed by subsections (c) and (d) of this
14Section for which a taxpayer has claimed a credit under this
15subsection (i) is reduced, the amount of credit for such tax
16shall also be reduced. Such reduction shall be determined by
17recomputing the credit to take into account the reduced tax
18imposed by subsections (c) and (d). If any portion of the
19reduced amount of credit has been carried to a different
20taxable year, an amended return shall be filed for such taxable
21year to reduce the amount of credit claimed.
22    (j) Training expense credit. Beginning with tax years
23ending on or after December 31, 1986 and prior to December 31,
242003, a taxpayer shall be allowed a credit against the tax
25imposed by subsections (a) and (b) under this Section for all
26amounts paid or accrued, on behalf of all persons employed by

 

 

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1the taxpayer in Illinois or Illinois residents employed outside
2of Illinois by a taxpayer, for educational or vocational
3training in semi-technical or technical fields or semi-skilled
4or skilled fields, which were deducted from gross income in the
5computation of taxable income. The credit against the tax
6imposed by subsections (a) and (b) shall be 1.6% of such
7training expenses. For partners, shareholders of subchapter S
8corporations, and owners of limited liability companies, if the
9liability company is treated as a partnership for purposes of
10federal and State income taxation, there shall be allowed a
11credit under this subsection (j) to be determined in accordance
12with the determination of income and distributive share of
13income under Sections 702 and 704 and subchapter S of the
14Internal Revenue Code.
15    Any credit allowed under this subsection which is unused in
16the year the credit is earned may be carried forward to each of
17the 5 taxable years following the year for which the credit is
18first computed until it is used. This credit shall be applied
19first to the earliest year for which there is a liability. If
20there is a credit under this subsection from more than one tax
21year that is available to offset a liability the earliest
22credit arising under this subsection shall be applied first. No
23carryforward credit may be claimed in any tax year ending on or
24after December 31, 2003.
25    (k) Research and development credit.
26    For tax years ending after July 1, 1990 and prior to

 

 

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1December 31, 2003, and beginning again for tax years ending on
2or after December 31, 2004, and ending prior to January 1,
32011, a taxpayer shall be allowed a credit against the tax
4imposed by subsections (a) and (b) of this Section for
5increasing research activities in this State. The credit
6allowed against the tax imposed by subsections (a) and (b)
7shall be equal to 6 1/2% of the qualifying expenditures for
8increasing research activities in this State. For partners,
9shareholders of subchapter S corporations, and owners of
10limited liability companies, if the liability company is
11treated as a partnership for purposes of federal and State
12income taxation, there shall be allowed a credit under this
13subsection to be determined in accordance with the
14determination of income and distributive share of income under
15Sections 702 and 704 and subchapter S of the Internal Revenue
16Code.
17    For purposes of this subsection, "qualifying expenditures"
18means the qualifying expenditures as defined for the federal
19credit for increasing research activities which would be
20allowable under Section 41 of the Internal Revenue Code and
21which are conducted in this State, "qualifying expenditures for
22increasing research activities in this State" means the excess
23of qualifying expenditures for the taxable year in which
24incurred over qualifying expenditures for the base period,
25"qualifying expenditures for the base period" means the average
26of the qualifying expenditures for each year in the base

 

 

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1period, and "base period" means the 3 taxable years immediately
2preceding the taxable year for which the determination is being
3made.
4    Any credit in excess of the tax liability for the taxable
5year may be carried forward. A taxpayer may elect to have the
6unused credit shown on its final completed return carried over
7as a credit against the tax liability for the following 5
8taxable years or until it has been fully used, whichever occurs
9first; provided that no credit earned in a tax year ending
10prior to December 31, 2003 may be carried forward to any year
11ending on or after December 31, 2003, and no credit may be
12carried forward to any taxable year ending on or after January
131, 2011.
14    If an unused credit is carried forward to a given year from
152 or more earlier years, that credit arising in the earliest
16year will be applied first against the tax liability for the
17given year. If a tax liability for the given year still
18remains, the credit from the next earliest year will then be
19applied, and so on, until all credits have been used or no tax
20liability for the given year remains. Any remaining unused
21credit or credits then will be carried forward to the next
22following year in which a tax liability is incurred, except
23that no credit can be carried forward to a year which is more
24than 5 years after the year in which the expense for which the
25credit is given was incurred.
26    No inference shall be drawn from this amendatory Act of the

 

 

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191st General Assembly in construing this Section for taxable
2years beginning before January 1, 1999.
3    (l) Environmental Remediation Tax Credit.
4        (i) For tax years ending after December 31, 1997 and on
5    or before December 31, 2001, a taxpayer shall be allowed a
6    credit against the tax imposed by subsections (a) and (b)
7    of this Section for certain amounts paid for unreimbursed
8    eligible remediation costs, as specified in this
9    subsection. For purposes of this Section, "unreimbursed
10    eligible remediation costs" means costs approved by the
11    Illinois Environmental Protection Agency ("Agency") under
12    Section 58.14 of the Environmental Protection Act that were
13    paid in performing environmental remediation at a site for
14    which a No Further Remediation Letter was issued by the
15    Agency and recorded under Section 58.10 of the
16    Environmental Protection Act. The credit must be claimed
17    for the taxable year in which Agency approval of the
18    eligible remediation costs is granted. The credit is not
19    available to any taxpayer if the taxpayer or any related
20    party caused or contributed to, in any material respect, a
21    release of regulated substances on, in, or under the site
22    that was identified and addressed by the remedial action
23    pursuant to the Site Remediation Program of the
24    Environmental Protection Act. After the Pollution Control
25    Board rules are adopted pursuant to the Illinois
26    Administrative Procedure Act for the administration and

 

 

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1    enforcement of Section 58.9 of the Environmental
2    Protection Act, determinations as to credit availability
3    for purposes of this Section shall be made consistent with
4    those rules. For purposes of this Section, "taxpayer"
5    includes a person whose tax attributes the taxpayer has
6    succeeded to under Section 381 of the Internal Revenue Code
7    and "related party" includes the persons disallowed a
8    deduction for losses by paragraphs (b), (c), and (f)(1) of
9    Section 267 of the Internal Revenue Code by virtue of being
10    a related taxpayer, as well as any of its partners. The
11    credit allowed against the tax imposed by subsections (a)
12    and (b) shall be equal to 25% of the unreimbursed eligible
13    remediation costs in excess of $100,000 per site, except
14    that the $100,000 threshold shall not apply to any site
15    contained in an enterprise zone as determined by the
16    Department of Commerce and Community Affairs (now
17    Department of Commerce and Economic Opportunity). The
18    total credit allowed shall not exceed $40,000 per year with
19    a maximum total of $150,000 per site. For partners and
20    shareholders of subchapter S corporations, there shall be
21    allowed a credit under this subsection to be determined in
22    accordance with the determination of income and
23    distributive share of income under Sections 702 and 704 and
24    subchapter S of the Internal Revenue Code.
25        (ii) A credit allowed under this subsection that is
26    unused in the year the credit is earned may be carried

 

 

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

 

 

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1    (m) Education expense credit. Beginning with tax years
2ending after December 31, 1999, a taxpayer who is the custodian
3of one or more qualifying pupils shall be allowed a credit
4against the tax imposed by subsections (a) and (b) of this
5Section for qualified education expenses incurred on behalf of
6the qualifying pupils. The credit shall be equal to 25% of
7qualified education expenses, but in no event may the total
8credit under this subsection claimed by a family that is the
9custodian of qualifying pupils exceed $500. In no event shall a
10credit under this subsection reduce the taxpayer's liability
11under this Act to less than zero. This subsection is exempt
12from the provisions of Section 250 of this Act.
13    For purposes of this subsection:
14    "Qualifying pupils" means individuals who (i) are
15residents of the State of Illinois, (ii) are under the age of
1621 at the close of the school year for which a credit is
17sought, and (iii) during the school year for which a credit is
18sought were full-time pupils enrolled in a kindergarten through
19twelfth grade education program at any school, as defined in
20this subsection.
21    "Qualified education expense" means the amount incurred on
22behalf of a qualifying pupil in excess of $250 for tuition,
23book fees, and lab fees at the school in which the pupil is
24enrolled during the regular school year.
25    "School" means any public or nonpublic elementary or
26secondary school in Illinois that is in compliance with Title

 

 

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1VI of the Civil Rights Act of 1964 and attendance at which
2satisfies the requirements of Section 26-1 of the School Code,
3except that nothing shall be construed to require a child to
4attend any particular public or nonpublic school to qualify for
5the credit under this Section.
6    "Custodian" means, with respect to qualifying pupils, an
7Illinois resident who is a parent, the parents, a legal
8guardian, or the legal guardians of the qualifying pupils.
9    (n) River Edge Redevelopment Zone site remediation tax
10credit.
11        (i) For tax years ending on or after December 31, 2006,
12    a taxpayer shall be allowed a credit against the tax
13    imposed by subsections (a) and (b) of this Section for
14    certain amounts paid for unreimbursed eligible remediation
15    costs, as specified in this subsection. For purposes of
16    this Section, "unreimbursed eligible remediation costs"
17    means costs approved by the Illinois Environmental
18    Protection Agency ("Agency") under Section 58.14a of the
19    Environmental Protection Act that were paid in performing
20    environmental remediation at a site within a River Edge
21    Redevelopment Zone for which a No Further Remediation
22    Letter was issued by the Agency and recorded under Section
23    58.10 of the Environmental Protection Act. The credit must
24    be claimed for the taxable year in which Agency approval of
25    the eligible remediation costs is granted. The credit is
26    not available to any taxpayer if the taxpayer or any

 

 

09700SB1849ham002- 120 -LRB097 07133 AMC 59587 a

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

 

 

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1    subsection from more than one tax year that is available to
2    offset a liability, the earliest credit arising under this
3    subsection shall be applied first. A credit allowed under
4    this subsection may be sold to a buyer as part of a sale of
5    all or part of the remediation site for which the credit
6    was granted. The purchaser of a remediation site and the
7    tax credit shall succeed to the unused credit and remaining
8    carry-forward period of the seller. To perfect the
9    transfer, the assignor shall record the transfer in the
10    chain of title for the site and provide written notice to
11    the Director of the Illinois Department of Revenue of the
12    assignor's intent to sell the remediation site and the
13    amount of the tax credit to be transferred as a portion of
14    the sale. In no event may a credit be transferred to any
15    taxpayer if the taxpayer or a related party would not be
16    eligible under the provisions of subsection (i).
17        (iii) For purposes of this Section, the term "site"
18    shall have the same meaning as under Section 58.2 of the
19    Environmental Protection Act.
20(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;
2196-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.
221-13-11; 97-2, eff. 5-6-11.)
 
23    Section 90-23. The Property Tax Code is amended by adding
24Section 15-144 as follows:
 

 

 

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1    (35 ILCS 200/15-144 new)
2    Sec. 15-144. Chicago Casino Development Authority. All
3property owned by the Chicago Casino Development Authority is
4exempt. Any property owned by the Chicago Casino Development
5Authority and leased to any other entity is not exempt.
 
6    Section 90-25. The Joliet Regional Port District Act is
7amended by changing Section 5.1 as follows:
 
8    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
9    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
10any other provision of this Act, the District may not regulate
11the operation, conduct, or navigation of any riverboat gambling
12casino licensed under the Illinois Riverboat Gambling Act, and
13the District may not license, tax, or otherwise levy any
14assessment of any kind on any riverboat gambling casino
15licensed under the Illinois Riverboat Gambling Act. The General
16Assembly declares that the powers to regulate the operation,
17conduct, and navigation of riverboat gambling casinos and to
18license, tax, and levy assessments upon riverboat gambling
19casinos are exclusive powers of the State of Illinois and the
20Illinois Gaming Board as provided in the Illinois Riverboat
21Gambling Act.
22(Source: P.A. 87-1175.)
 
23    Section 90-30. The Consumer Installment Loan Act is amended

 

 

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1by changing Section 12.5 as follows:
 
2    (205 ILCS 670/12.5)
3    Sec. 12.5. Limited purpose branch.
4    (a) Upon the written approval of the Director, a licensee
5may maintain a limited purpose branch for the sole purpose of
6making loans as permitted by this Act. A limited purpose branch
7may include an automatic loan machine. No other activity shall
8be conducted at the site, including but not limited to,
9accepting payments, servicing the accounts, or collections.
10    (b) The licensee must submit an application for a limited
11purpose branch to the Director on forms prescribed by the
12Director with an application fee of $300. The approval for the
13limited purpose branch must be renewed concurrently with the
14renewal of the licensee's license along with a renewal fee of
15$300 for the limited purpose branch.
16    (c) The books, accounts, records, and files of the limited
17purpose branch's transactions shall be maintained at the
18licensee's licensed location. The licensee shall notify the
19Director of the licensed location at which the books, accounts,
20records, and files shall be maintained.
21    (d) The licensee shall prominently display at the limited
22purpose branch the address and telephone number of the
23licensee's licensed location.
24    (e) No other business shall be conducted at the site of the
25limited purpose branch unless authorized by the Director.

 

 

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1    (f) The Director shall make and enforce reasonable rules
2for the conduct of a limited purpose branch.
3    (g) A limited purpose branch may not be located within
41,000 feet of a facility operated by an inter-track wagering
5licensee or an organization licensee subject to the Illinois
6Horse Racing Act of 1975, on a riverboat or in a casino subject
7to the Illinois Riverboat Gambling Act, or within 1,000 feet of
8the location at which the riverboat docks or within 1,000 feet
9of a casino.
10(Source: P.A. 90-437, eff. 1-1-98.)
 
11    Section 90-35. The Illinois Horse Racing Act of 1975 is
12amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15.1, 18,
1319, 20, 24, 26, 27, 28, 28.1, 30, 30.5, 31, 31.1, 32.1, 36, and
1440 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36, 34.3,
15and 56 as follows:
 
16    (230 ILCS 5/1.2)
17    Sec. 1.2. Legislative intent. This Act is intended to
18benefit the people of the State of Illinois by encouraging the
19breeding and production of race horses, assisting economic
20development and promoting Illinois tourism. The General
21Assembly finds and declares it to be the public policy of the
22State of Illinois to:
23    (a) support and enhance Illinois' horse racing industry,
24which is a significant component within the agribusiness

 

 

09700SB1849ham002- 125 -LRB097 07133 AMC 59587 a

1industry;
2    (b) ensure that Illinois' horse racing industry remains
3competitive with neighboring states;
4    (c) stimulate growth within Illinois' horse racing
5industry, thereby encouraging new investment and development
6to produce additional tax revenues and to create additional
7jobs;
8    (d) promote the further growth of tourism;
9    (e) encourage the breeding of thoroughbred and
10standardbred horses in this State; and
11    (f) ensure that public confidence and trust in the
12credibility and integrity of racing operations and the
13regulatory process is maintained.
14(Source: P.A. 91-40, eff. 6-25-99.)
 
15    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
16    Sec. 3.11. "Organization Licensee" means any person
17receiving an organization license from the Board to conduct a
18race meeting or meetings. With respect only to electronic
19gaming, "organization licensee" includes the authorization for
20an electronic gaming license under subsection (a) of Section 56
21of this Act.
22(Source: P.A. 79-1185.)
 
23    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
24    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel

 

 

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1system of wagering" means a form of wagering on the outcome of
2horse races in which wagers are made in various denominations
3on a horse or horses and all wagers for each race are pooled
4and held by a licensee for distribution in a manner approved by
5the Board. "Pari-mutuel system of wagering" shall not include
6wagering on historic races. Wagers may be placed via any method
7or at any location authorized under this Act.
8(Source: P.A. 96-762, eff. 8-25-09.)
 
9    (230 ILCS 5/3.31 new)
10    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
11receipts" means the gross receipts less winnings paid to
12wagerers.
 
13    (230 ILCS 5/3.32 new)
14    Sec. 3.32. Gross receipts. "Gross receipts" means the total
15amount of money exchanged for the purchase of chips, tokens, or
16electronic cards by riverboat or casino patrons or electronic
17gaming patrons.
 
18    (230 ILCS 5/3.33 new)
19    Sec. 3.33. Electronic gaming. "Electronic gaming" means
20slot machine gambling, video game of chance gambling, or
21gambling with electronic gambling games as defined in the
22Illinois Gambling Act or defined by the Illinois Gaming Board
23that is conducted at a race track pursuant to an electronic

 

 

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1gaming license.
 
2    (230 ILCS 5/3.35 new)
3    Sec. 3.35. Electronic gaming license. "Electronic gaming
4license" means a license issued by the Illinois Gaming Board
5under Section 7.6 of the Illinois Gambling Act authorizing
6electronic gaming at an electronic gaming facility.
 
7    (230 ILCS 5/3.36 new)
8    Sec. 3.36. Electronic gaming facility. "Electronic gaming
9facility" means that portion of an organization licensee's race
10track facility at which electronic gaming is conducted.
 
11    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
12    Sec. 6. Restrictions on Board members.
13    (a) No person shall be appointed a member of the Board or
14continue to be a member of the Board if the person or any
15member of their immediate family is a member of the Board of
16Directors, employee, or financially interested in any of the
17following: (i) any licensee or other person who has applied for
18racing dates to the Board, or the operations thereof including,
19but not limited to, concessions, data processing, track
20maintenance, track security, and pari-mutuel operations,
21located, scheduled or doing business within the State of
22Illinois, (ii) any race horse competing at a meeting under the
23Board's jurisdiction, or (iii) any licensee under the Illinois

 

 

09700SB1849ham002- 128 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 129 -LRB097 07133 AMC 59587 a

1in furtherance of the person's official State duties or
2governmental and public service functions.
3    (d) Board members and employees may not engage in
4communications or any activity that may cause or have the
5appearance of causing a conflict of interest. A conflict of
6interest exists if a situation influences or creates the
7appearance that it may influence judgment or performance of
8regulatory duties and responsibilities. This prohibition shall
9extend to any act identified by Board action that, in the
10judgment of the Board, could represent the potential for or the
11appearance of a conflict of interest.
12    (e) Board members and employees may not accept any gift,
13gratuity, service, compensation, travel, lodging, or thing of
14value, with the exception of unsolicited items of an incidental
15nature, from any person, corporation, or entity doing business
16with the Board.
17    (f) A Board member or employee shall not use or attempt to
18use his or her official position to secure, or attempt to
19secure, any privilege, advantage, favor, or influence for
20himself or herself or others. No Board member or employee,
21within a period of one year immediately preceding nomination by
22the Governor or employment, shall have been employed or
23received compensation or fees for services from a person or
24entity, or its parent or affiliate, that has engaged in
25business with the Board, a licensee or a licensee under the
26Illinois Gambling Act. In addition, all Board members and

 

 

09700SB1849ham002- 130 -LRB097 07133 AMC 59587 a

1employees are subject to the restrictions set forth in Section
25-45 of the State Officials and Employees Ethics Act.
3(Source: P.A. 89-16, eff. 5-30-95.)
 
4    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
5    Sec. 9. The Board shall have all powers necessary and
6proper to fully and effectively execute the provisions of this
7Act, including, but not limited to, the following:
8    (a) The Board is vested with jurisdiction and supervision
9over all race meetings in this State, over all licensees doing
10business in this State, over all occupation licensees, and over
11all persons on the facilities of any licensee. Such
12jurisdiction shall include the power to issue licenses to the
13Illinois Department of Agriculture authorizing the pari-mutuel
14system of wagering on harness and Quarter Horse races held (1)
15at the Illinois State Fair in Sangamon County, and (2) at the
16DuQuoin State Fair in Perry County. The jurisdiction of the
17Board shall also include the power to issue licenses to county
18fairs which are eligible to receive funds pursuant to the
19Agricultural Fair Act, as now or hereafter amended, or their
20agents, authorizing the pari-mutuel system of wagering on horse
21races conducted at the county fairs receiving such licenses.
22Such licenses shall be governed by subsection (n) of this
23Section.
24    Upon application, the Board shall issue a license to the
25Illinois Department of Agriculture to conduct harness and

 

 

09700SB1849ham002- 131 -LRB097 07133 AMC 59587 a

1Quarter Horse races at the Illinois State Fair and at the
2DuQuoin State Fairgrounds during the scheduled dates of each
3fair. The Board shall not require and the Department of
4Agriculture shall be exempt from the requirements of Sections
515.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
6(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
7and 25. The Board and the Department of Agriculture may extend
8any or all of these exemptions to any contractor or agent
9engaged by the Department of Agriculture to conduct its race
10meetings when the Board determines that this would best serve
11the public interest and the interest of horse racing.
12    Notwithstanding any provision of law to the contrary, it
13shall be lawful for any licensee to operate pari-mutuel
14wagering or contract with the Department of Agriculture to
15operate pari-mutuel wagering at the DuQuoin State Fairgrounds
16or for the Department to enter into contracts with a licensee,
17employ its owners, employees or agents and employ such other
18occupation licensees as the Department deems necessary in
19connection with race meetings and wagerings.
20    (b) The Board is vested with the full power to promulgate
21reasonable rules and regulations for the purpose of
22administering the provisions of this Act and to prescribe
23reasonable rules, regulations and conditions under which all
24horse race meetings or wagering in the State shall be
25conducted. Such reasonable rules and regulations are to provide
26for the prevention of practices detrimental to the public

 

 

09700SB1849ham002- 132 -LRB097 07133 AMC 59587 a

1interest and to promote the best interests of horse racing and
2to impose penalties for violations thereof.
3    (c) The Board, and any person or persons to whom it
4delegates this power, is vested with the power to enter the
5facilities and other places of business of any licensee to
6determine whether there has been compliance with the provisions
7of this Act and its rules and regulations.
8    (d) The Board, and any person or persons to whom it
9delegates this power, is vested with the authority to
10investigate alleged violations of the provisions of this Act,
11its reasonable rules and regulations, orders and final
12decisions; the Board shall take appropriate disciplinary
13action against any licensee or occupation licensee for
14violation thereof or institute appropriate legal action for the
15enforcement thereof.
16    (e) The Board, and any person or persons to whom it
17delegates this power, may eject or exclude from any race
18meeting or the facilities of any licensee, or any part thereof,
19any occupation licensee or any other individual whose conduct
20or reputation is such that his presence on those facilities
21may, in the opinion of the Board, call into question the
22honesty and integrity of horse racing or wagering or interfere
23with the orderly conduct of horse racing or wagering; provided,
24however, that no person shall be excluded or ejected from the
25facilities of any licensee solely on the grounds of race,
26color, creed, national origin, ancestry, or sex. The power to

 

 

09700SB1849ham002- 133 -LRB097 07133 AMC 59587 a

1eject or exclude an occupation licensee or other individual may
2be exercised for just cause by the licensee or the Board,
3subject to subsequent hearing by the Board as to the propriety
4of said exclusion.
5    (f) The Board is vested with the power to acquire,
6establish, maintain and operate (or provide by contract to
7maintain and operate) testing laboratories and related
8facilities, for the purpose of conducting saliva, blood, urine
9and other tests on the horses run or to be run in any horse race
10meeting, including races run at county fairs, and to purchase
11all equipment and supplies deemed necessary or desirable in
12connection with any such testing laboratories and related
13facilities and all such tests.
14    (g) The Board may require that the records, including
15financial or other statements of any licensee or any person
16affiliated with the licensee who is involved directly or
17indirectly in the activities of any licensee as regulated under
18this Act to the extent that those financial or other statements
19relate to such activities be kept in such manner as prescribed
20by the Board, and that Board employees shall have access to
21those records during reasonable business hours. Within 120 days
22of the end of its fiscal year, each licensee shall transmit to
23the Board an audit of the financial transactions and condition
24of the licensee's total operations. All audits shall be
25conducted by certified public accountants. Each certified
26public accountant must be registered in the State of Illinois

 

 

09700SB1849ham002- 134 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 135 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 136 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 137 -LRB097 07133 AMC 59587 a

1licensee to staff the pari-mutuel department with adequate
2personnel.
3(Source: P.A. 91-239, eff. 1-1-00.)
 
4    (230 ILCS 5/15.1)  (from Ch. 8, par. 37-15.1)
5    Sec. 15.1. Upon collection of the fee accompanying the
6application for an occupation license, the Board shall be
7authorized to make daily temporary deposits of the fees, for a
8period not to exceed 7 days, with the horsemen's bookkeeper at
9a race meeting. The horsemen's bookkeeper shall issue a check,
10payable to the order of the Illinois Racing Board, for monies
11deposited under this Section within 24 hours of receipt of the
12monies. Provided however, upon the issuance of the check by the
13horsemen's bookkeeper the check shall be deposited into the
14Horse Racing Fund in the State Treasury in accordance with the
15provisions of the "State Officers and Employees Money
16Disposition Act", approved June 9, 1911, as amended.
17(Source: P.A. 84-432.)
 
18    (230 ILCS 5/18)  (from Ch. 8, par. 37-18)
19    Sec. 18. (a) Together with its application, each applicant
20for racing dates shall deliver to the Board a certified check
21or bank draft payable to the order of the Board for $1,000. In
22the event the applicant applies for racing dates in 2 or 3
23successive calendar years as provided in subsection (b) of
24Section 21, the fee shall be $2,000. Filing fees shall not be

 

 

09700SB1849ham002- 138 -LRB097 07133 AMC 59587 a

1refunded in the event the application is denied. All filing
2fees shall be deposited into the Horse Racing Fund.
3    (b) In addition to the filing fee of $1000 and the fees
4provided in subsection (j) of Section 20, each organization
5licensee shall pay a license fee of $100 for each racing
6program on which its daily pari-mutuel handle is $400,000 or
7more but less than $700,000, and a license fee of $200 for each
8racing program on which its daily pari-mutuel handle is
9$700,000 or more. The additional fees required to be paid under
10this Section by this amendatory Act of 1982 shall be remitted
11by the organization licensee to the Illinois Racing Board with
12each day's graduated privilege tax or pari-mutuel tax and
13breakage as provided under Section 27.
14    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
15Municipal Code," approved May 29, 1961, as now or hereafter
16amended, shall not apply to any license under this Act.
17(Source: P.A. 91-40, eff. 6-25-99.)
 
18    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
19    Sec. 19. (a) No organization license may be granted to
20conduct a horse race meeting:
21        (1) except as provided in subsection (c) of Section 21
22    of this Act, to any person at any place within 35 miles of
23    any other place licensed by the Board to hold a race
24    meeting on the same date during the same hours, the mileage
25    measurement used in this subsection (a) shall be certified

 

 

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

 

 

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1    contract or lease for the possession of a finished race
2    track suitable for the type of racing intended to be held
3    by the applicant and for the accommodation of the public.
4    (b) (Blank) Horse racing on Sunday shall be prohibited
5unless authorized by ordinance or referendum of the
6municipality in which a race track or any of its appurtenances
7or facilities are located, or utilized.
8    (c) If any person is ineligible to receive an organization
9license because of any of the matters set forth in subsection
10(a) (2) or subsection (a) (3) of this Section, any other or
11separate person that either (i) controls, directly or
12indirectly, such ineligible person or (ii) is controlled,
13directly or indirectly, by such ineligible person or by a
14person which controls, directly or indirectly, such ineligible
15person shall also be ineligible.
16(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
17    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
18    Sec. 20. (a) Any person desiring to conduct a horse race
19meeting may apply to the Board for an organization license. The
20application shall be made on a form prescribed and furnished by
21the Board. The application shall specify:
22        (1) the dates on which it intends to conduct the horse
23    race meeting, which dates shall be provided under Section
24    21;
25        (2) the hours of each racing day between which it

 

 

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

 

 

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1trusts who are the beneficial owners thereof or who are
2beneficially interested therein; and if a partnership, the
3names and post office addresses of all partners, general or
4limited; if the applicant is a corporation, the name of the
5state of its incorporation shall be specified.
6    (d) The applicant shall execute and file with the Board a
7good faith affirmative action plan to recruit, train, and
8upgrade minorities in all classifications within the
9association.
10    (e) With such application there shall be delivered to the
11Board a certified check or bank draft payable to the order of
12the Board for an amount equal to $1,000. All applications for
13the issuance of an organization license shall be filed with the
14Board before August 1 of the year prior to the year for which
15application is made and shall be acted upon by the Board at a
16meeting to be held on such date as shall be fixed by the Board
17during the last 15 days of September of such prior year. At
18such meeting, the Board shall announce the award of the racing
19meets, live racing schedule, and designation of host track to
20the applicants and its approval or disapproval of each
21application. No announcement shall be considered binding until
22a formal order is executed by the Board, which shall be
23executed no later than October 15 of that prior year. Absent
24the agreement of the affected organization licensees, the Board
25shall not grant overlapping race meetings to 2 or more tracks
26that are within 100 miles of each other to conduct the

 

 

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1thoroughbred racing.
2    (e-1) In awarding standardbred racing dates for calendar
3year 2012 and thereafter, the Board shall award at least 310
4racing days, and each organization licensees shall average at
5least 12 races for each racing day awarded. The Board shall
6have the discretion to allocate those racing days among
7organization licensees requesting standardbred race dates.
8Once awarded by the Board, organization licensees awarded
9standardbred dates shall run at least 3,500 races in total
10during that calendar year. Standardbred racing conducted in
11Sangamon County shall not be considered races under this
12subsection (e-1).
13    (e-2) In awarding racing dates for calendar year 2012 and
14thereafter, the Board shall award racing dates and the
15organization licensees shall run at least 2,500 thoroughbred
16races at Cook County race tracks and 700 thoroughbred races at
17a race track in Madison County each year. In awarding racing
18dates under this subsection (e-2), the Board shall have the
19discretion to allocate those racing dates among organization
20licensees.
21    (e-3) The Board shall ensure that each organization
22licensee shall individually run a sufficient number of races
23per year to qualify for an electronic gaming license under
24Section 7.6 of the Illinois Gambling Act.
25    (e-4) Notwithstanding the provisions of Section 7.6 of the
26Illinois Gambling Act, for each calendar year for which an

 

 

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1electronic gaming licensee requests a number of live racing
2days under its organization license that is less than the
3number of days of live racing awarded in 2009 for its race
4track facility, the electronic gaming licensee may not conduct
5electronic gaming for the calendar year of such requested
6racing days. The number of days of live racing may be adjusted,
7on a year-by-year basis, because of weather or unsafe track
8conditions due to acts of God or an agreement between the
9organization licensee and the association representing the
10largest number of owners, trainers, or standardbred drivers who
11race horses at that organization licensee's racing meeting.
12    (e-5) In reviewing an application for the purpose of
13granting an organization license consistent with the best
14interests of the public and the sport of horse racing, the
15Board shall consider:
16        (1) the character, reputation, experience, and
17    financial integrity of the applicant and of any other
18    separate person that either:
19            (i) controls the applicant, directly or
20        indirectly, or
21            (ii) is controlled, directly or indirectly, by
22        that applicant or by a person who controls, directly or
23        indirectly, that applicant;
24        (2) the applicant's facilities or proposed facilities
25    for conducting horse racing;
26        (3) the total revenue without regard to Section 32.1 to

 

 

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1    be derived by the State and horsemen from the applicant's
2    conducting a race meeting;
3        (4) the applicant's good faith affirmative action plan
4    to recruit, train, and upgrade minorities in all employment
5    classifications;
6        (5) the applicant's financial ability to purchase and
7    maintain adequate liability and casualty insurance;
8        (6) the applicant's proposed and prior year's
9    promotional and marketing activities and expenditures of
10    the applicant associated with those activities;
11        (7) an agreement, if any, among organization licensees
12    as provided in subsection (b) of Section 21 of this Act;
13    and
14        (8) the extent to which the applicant exceeds or meets
15    other standards for the issuance of an organization license
16    that the Board shall adopt by rule.
17    In granting organization licenses and allocating dates for
18horse race meetings, the Board shall have discretion to
19determine an overall schedule, including required simulcasts
20of Illinois races by host tracks that will, in its judgment, be
21conducive to the best interests of the public and the sport of
22horse racing.
23    (e-10) The Illinois Administrative Procedure Act shall
24apply to administrative procedures of the Board under this Act
25for the granting of an organization license, except that (1)
26notwithstanding the provisions of subsection (b) of Section

 

 

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110-40 of the Illinois Administrative Procedure Act regarding
2cross-examination, the Board may prescribe rules limiting the
3right of an applicant or participant in any proceeding to award
4an organization license to conduct cross-examination of
5witnesses at that proceeding where that cross-examination
6would unduly obstruct the timely award of an organization
7license under subsection (e) of Section 20 of this Act; (2) the
8provisions of Section 10-45 of the Illinois Administrative
9Procedure Act regarding proposals for decision are excluded
10under this Act; (3) notwithstanding the provisions of
11subsection (a) of Section 10-60 of the Illinois Administrative
12Procedure Act regarding ex parte communications, the Board may
13prescribe rules allowing ex parte communications with
14applicants or participants in a proceeding to award an
15organization license where conducting those communications
16would be in the best interest of racing, provided all those
17communications are made part of the record of that proceeding
18pursuant to subsection (c) of Section 10-60 of the Illinois
19Administrative Procedure Act; (4) the provisions of Section 14a
20of this Act and the rules of the Board promulgated under that
21Section shall apply instead of the provisions of Article 10 of
22the Illinois Administrative Procedure Act regarding
23administrative law judges; and (5) the provisions of subsection
24(d) of Section 10-65 of the Illinois Administrative Procedure
25Act that prevent summary suspension of a license pending
26revocation or other action shall not apply.

 

 

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

 

 

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1accepted or the racing dates associated with any suspension or
2revocation period to one or more organization licensees, new
3applicants, or any combination thereof, upon terms and
4conditions that the Board determines are in the best interest
5of racing, provided, the organization licensees or new
6applicants receiving the awarded racing dates file an
7acceptance of those reawarded racing dates as required under
8paragraph (1) of subsection (h) of this Section 20 and comply
9with the other provisions of this Act. The Illinois
10Administrative Procedure Act shall not apply to the
11administrative procedures of the Board in conducting the
12emergency hearing and the reallocation of racing dates on an
13emergency basis.
14    (g) (Blank).
15    (h) The Board shall send the applicant a copy of its
16formally executed order by certified mail addressed to the
17applicant at the address stated in his application, which
18notice shall be mailed within 5 days of the date the formal
19order is executed.
20    Each applicant notified shall, within 10 days after receipt
21of the final executed order of the Board awarding racing dates:
22        (1) file with the Board an acceptance of such award in
23    the form prescribed by the Board;
24        (2) pay to the Board an additional amount equal to $110
25    for each racing date awarded; and
26        (3) file with the Board the bonds required in Sections

 

 

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1    21 and 25 at least 20 days prior to the first day of each
2    race meeting.
3Upon compliance with the provisions of paragraphs (1), (2), and
4(3) of this subsection (h), the applicant shall be issued an
5organization license.
6    If any applicant fails to comply with this Section or fails
7to pay the organization license fees herein provided, no
8organization license shall be issued to such applicant.
9(Source: P.A. 97-333, eff. 8-12-11.)
 
10    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
11    Sec. 24. (a) No license shall be issued to or held by an
12organization licensee unless all of its officers, directors,
13and holders of ownership interests of at least 5% are first
14approved by the Board. The Board shall not give approval of an
15organization license application to any person who has been
16convicted of or is under an indictment for a crime of moral
17turpitude or has violated any provision of the racing law of
18this State or any rules of the Board.
19    (b) An organization licensee must notify the Board within
2010 days of any change in the holders of a direct or indirect
21interest in the ownership of the organization licensee. The
22Board may, after hearing, revoke the organization license of
23any person who registers on its books or knowingly permits a
24direct or indirect interest in the ownership of that person
25without notifying the Board of the name of the holder in

 

 

09700SB1849ham002- 150 -LRB097 07133 AMC 59587 a

1interest within this period.
2    (c) In addition to the provisions of subsection (a) of this
3Section, no person shall be granted an organization license if
4any public official of the State or member of his or her family
5holds any ownership or financial interest, directly or
6indirectly, in the person.
7    (d) No person which has been granted an organization
8license to hold a race meeting shall give to any public
9official or member of his family, directly or indirectly, for
10or without consideration, any interest in the person. The Board
11shall, after hearing, revoke the organization license granted
12to a person which has violated this subsection.
13    (e) (Blank).
14    (f) No organization licensee or concessionaire or officer,
15director or holder or controller of 5% or more legal or
16beneficial interest in any organization licensee or concession
17shall make any sort of gift or contribution that is prohibited
18under Article 10 of the State Officials and Employees Ethics
19Act of any kind or pay or give any money or other thing of value
20to any person who is a public official, or a candidate or
21nominee for public office if that payment or gift is prohibited
22under Article 10 of the State Officials and Employees Ethics
23Act.
24(Source: P.A. 89-16, eff. 5-30-95.)
 
25    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)

 

 

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

 

 

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

 

 

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

 

 

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1within 48 hours of receipt of the moneys from the simulcast.
2When the out-of-State entity conducts a combined pari-mutuel
3pool with the organization licensee, the tax shall be 10% of
4all monies received by the organization licensee with 25% of
5the receipts from this 10% tax to be distributed to the county
6in which the race was conducted.
7    An organization licensee may permit one or more of its
8races to be utilized for pari-mutuel wagering at one or more
9locations in other states and may transmit audio and visual
10signals of races the organization licensee conducts to one or
11more locations outside the State or country and may also permit
12pari-mutuel pools in other states or countries to be combined
13with its gross or net wagering pools or with wagering pools
14established by other states.
15    (g) A host track may accept interstate simulcast wagers on
16horse races conducted in other states or countries and shall
17control the number of signals and types of breeds of racing in
18its simulcast program, subject to the disapproval of the Board.
19The Board may prohibit a simulcast program only if it finds
20that the simulcast program is clearly adverse to the integrity
21of racing. The host track simulcast program shall include the
22signal of live racing of all organization licensees. All
23non-host licensees and advance deposit wagering licensees
24shall carry the signal of and accept wagers on live racing of
25all organization licensees. Advance deposit wagering licensees
26shall not be permitted to accept out-of-state wagers on any

 

 

09700SB1849ham002- 155 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 156 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 157 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 158 -LRB097 07133 AMC 59587 a

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

 

 

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

 

 

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

 

 

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

 

 

09700SB1849ham002- 162 -LRB097 07133 AMC 59587 a

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

 

 

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1    year beginning on or after January 1, 2002, all moneys
2    derived by that racetrack from simulcast wagering and
3    inter-track wagering that (1) are to be used for purses and
4    (2) are generated between the hours of 6:30 p.m. and 6:30
5    a.m. during that calendar year shall be paid as 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 paid to its thoroughbred purse account;
10        and
11            (B) Twenty percent shall be deposited into the
12        Illinois Colt Stakes Purse Distribution Fund and shall
13        be paid to purses for standardbred races for Illinois
14        conceived and foaled horses conducted at any county
15        fairgrounds. The moneys deposited into the Fund
16        pursuant to this subparagraph (B) shall be deposited
17        within 2 weeks after the day they were generated, shall
18        be in addition to and not in lieu of any other moneys
19        paid to standardbred purses under this Act, and shall
20        not be commingled with other moneys paid into that
21        Fund. The moneys deposited pursuant to this
22        subparagraph (B) shall be allocated as provided by the
23        Department of Agriculture, with the advice and
24        assistance of the Illinois Standardbred Breeders Fund
25        Advisory Board.
26        (7.2) Notwithstanding any other provision of this Act

 

 

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

 

 

09700SB1849ham002- 165 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 166 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 167 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 168 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 169 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 170 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 171 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 172 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 173 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 174 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 175 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 176 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 177 -LRB097 07133 AMC 59587 a

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

 

 

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

 

 

09700SB1849ham002- 179 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 180 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 181 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 182 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 183 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 184 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 185 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 186 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 187 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 188 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 189 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 190 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 191 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 192 -LRB097 07133 AMC 59587 a

1    Fair in Perry County, or to any wagering conducted on those
2    race meetings.
3    (i) Notwithstanding the other provisions of this Act, the
4conduct of wagering at wagering facilities is authorized on all
5days, except as limited by subsection (b) of Section 19 of this
6Act.
7(Source: P.A. 96-762, eff. 8-25-09.)
 
8    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
9    Sec. 27. (a) In addition to the organization license fee
10provided by this Act, until January 1, 2000, a graduated
11privilege tax is hereby imposed for conducting the pari-mutuel
12system of wagering permitted under this Act. Until January 1,
132000, except as provided in subsection (g) of Section 27 of
14this Act, all of the breakage of each racing day held by any
15licensee in the State shall be paid to the State. Until January
161, 2000, such daily graduated privilege tax shall be paid by
17the licensee from the amount permitted to be retained under
18this Act. Until January 1, 2000, each day's graduated privilege
19tax, breakage, and Horse Racing Tax Allocation funds shall be
20remitted to the Department of Revenue within 48 hours after the
21close of the racing day upon which it is assessed or within
22such other time as the Board prescribes. The privilege tax
23hereby imposed, until January 1, 2000, shall be a flat tax at
24the rate of 2% of the daily pari-mutuel handle except as
25provided in Section 27.1.

 

 

09700SB1849ham002- 193 -LRB097 07133 AMC 59587 a

1    In addition, every organization licensee, except as
2provided in Section 27.1 of this Act, which conducts multiple
3wagering shall pay, until January 1, 2000, as a privilege tax
4on multiple wagers an amount equal to 1.25% of all moneys
5wagered each day on such multiple wagers, plus an additional
6amount equal to 3.5% of the amount wagered each day on any
7other multiple wager which involves a single betting interest
8on 3 or more horses. The licensee shall remit the amount of
9such taxes to the Department of Revenue within 48 hours after
10the close of the racing day on which it is assessed or within
11such other time as the Board prescribes.
12    This subsection (a) shall be inoperative and of no force
13and effect on and after January 1, 2000.
14    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
15at the rate of 1.5% of the daily pari-mutuel handle is imposed
16at all pari-mutuel wagering facilities and on advance deposit
17wagering from a location other than a wagering facility, except
18as otherwise provided for in this subsection (a-5). In addition
19to the pari-mutuel tax imposed on advance deposit wagering
20pursuant to this subsection (a-5), an additional pari-mutuel
21tax at the rate of 0.25% shall be imposed on advance deposit
22wagering, the amount of which shall not exceed $250,000 in each
23calendar year. The additional 0.25% pari-mutuel tax imposed on
24advance deposit wagering by this amendatory Act of the 96th
25General Assembly shall be deposited into the Quarter Horse
26Purse Fund, which shall be created as a non-appropriated trust

 

 

09700SB1849ham002- 194 -LRB097 07133 AMC 59587 a

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

 

 

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

 

 

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

 

 

09700SB1849ham002- 197 -LRB097 07133 AMC 59587 a

1paragraph 10.1 of subsection (h) and subsection (f) of Section
226 of this Act. However, any municipality that has a Board
3licensed horse race meeting at a race track wholly within its
4corporate boundaries or a township that has a Board licensed
5horse race meeting at a race track wholly within the
6unincorporated area of the township may charge a local
7amusement tax not to exceed 10 per admission to such horse
8race meeting by the enactment of an ordinance. However, any
9municipality or county that has a Board licensed inter-track
10wagering location facility wholly within its corporate
11boundaries may each impose an admission fee not to exceed $1.00
12per admission to such inter-track wagering location facility,
13so that a total of not more than $2.00 per admission may be
14imposed. Except as provided in subparagraph (g) of Section 27
15of this Act, the inter-track wagering location licensee shall
16collect any and all such fees and within 48 hours remit the
17fees to the Board, which shall, pursuant to rule, cause the
18fees to be distributed to the county or municipality.
19    (g) Notwithstanding any provision in this Act to the
20contrary, if in any calendar year the total taxes and fees from
21wagering on live racing and from inter-track wagering required
22to be collected from licensees and distributed under this Act
23to all State and local governmental authorities exceeds the
24amount of such taxes and fees distributed to each State and
25local governmental authority to which each State and local
26governmental authority was entitled under this Act for calendar

 

 

09700SB1849ham002- 198 -LRB097 07133 AMC 59587 a

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

 

 

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

 

 

09700SB1849ham002- 200 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 201 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 202 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 203 -LRB097 07133 AMC 59587 a

1    Authority in counties with a population of 1,000,000 or
2    more inhabitants;
3        (12) for the purpose of assisting in the care and
4    general rehabilitation of disabled veterans of any war and
5    their surviving spouses and orphans;
6        (13) for expenses of the Department of State Police for
7    duties performed under this Act;
8        (14) for the Department of Agriculture for soil surveys
9    and soil and water conservation purposes;
10        (15) for the Department of Agriculture for grants to
11    the City of Chicago for conducting the Chicagofest;
12        (16) for the State Comptroller for grants and operating
13    expenses authorized by the Illinois Global Partnership
14    Act.
15    (k) To the extent that monies paid by the Board to the
16Agricultural Premium Fund are in the opinion of the Governor in
17excess of the amount necessary for the purposes herein stated,
18the Governor shall notify the Comptroller and the State
19Treasurer of such fact, who, upon receipt of such notification,
20shall transfer such excess monies from the Agricultural Premium
21Fund to the General Revenue Fund.
22(Source: P.A. 94-91, Sections 55-135 and 90-10, eff. 7-1-05.)
 
23    (230 ILCS 5/28.1)
24    Sec. 28.1. Payments.
25    (a) Beginning on January 1, 2000, moneys collected by the

 

 

09700SB1849ham002- 204 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 205 -LRB097 07133 AMC 59587 a

1total pari-mutuel wagering handled by all Illinois
2organization licensees. The payments shall be made 50% from the
3organization licensee's account and 50% from the organization
4licensee's purse account.
5    (d) Beginning January 1, 2000, payments to all programs in
6existence on the effective date of this amendatory Act of 1999
7that are identified in Sections 26(c), 26(f), 26(h)(11)(C), and
828, subsections (a), (b), (c), (d), (e), (f), (g), and (h) of
9Section 30, and subsections (a), (b), (c), (d), (e), (f), (g),
10and (h) of Section 31 shall be made from the General Revenue
11Fund at the funding levels determined by amounts paid under
12this Act in calendar year 1998. Beginning on the effective date
13of this amendatory Act of the 93rd General Assembly, payments
14to the Peoria Park District shall be made from the General
15Revenue Fund at the funding level determined by amounts paid to
16that park district for museum purposes under this Act in
17calendar year 1994.
18    If an inter-track wagering location licensee's facility
19changes its location, then the payments associated with that
20facility under this subsection (d) for museum purposes shall be
21paid to the park district in the area where the facility
22relocates, and the payments shall be used for museum purposes.
23If the facility does not relocate to a park district, then the
24payments shall be paid to the taxing district that is
25responsible for park or museum expenditures.
26    (e) Beginning July 1, 2006, the payment authorized under

 

 

09700SB1849ham002- 206 -LRB097 07133 AMC 59587 a

1subsection (d) to museums and aquariums located in park
2districts of over 500,000 population shall be paid to museums,
3aquariums, and zoos in amounts determined by Museums in the
4Park, an association of museums, aquariums, and zoos located on
5Chicago Park District property.
6    (f) Beginning July 1, 2007, the Children's Discovery Museum
7in Normal, Illinois shall receive payments from the General
8Revenue Fund at the funding level determined by the amounts
9paid to the Miller Park Zoo in Bloomington, Illinois under this
10Section in calendar year 2006.
11(Source: P.A. 95-222, eff. 8-16-07; 96-562, eff. 8-18-09.)
 
12    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
13    Sec. 30. (a) The General Assembly declares that it is the
14policy of this State to encourage the breeding of thoroughbred
15horses in this State and the ownership of such horses by
16residents of this State in order to provide for: sufficient
17numbers of high quality thoroughbred horses to participate in
18thoroughbred racing meetings 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) Each organization licensee conducting a thoroughbred
24racing meeting pursuant to this Act shall provide at least two
25races each day limited to Illinois conceived and foaled horses

 

 

09700SB1849ham002- 207 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 208 -LRB097 07133 AMC 59587 a

1from revenues generated by electronic gaming after the
2effective date of this amendatory Act of the 97th General
3Assembly shall be in addition to tax and fee amounts paid under
4this Section for calendar year 2011 and thereafter.
5    (e) The Illinois Thoroughbred Breeders Fund shall be
6administered by the Department of Agriculture with the advice
7and assistance of the Advisory Board created in subsection (f)
8of this Section.
9    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
10shall consist of the Director of the Department of Agriculture,
11who shall serve as Chairman; a member of the Illinois Racing
12Board, designated by it; 2 representatives of the organization
13licensees conducting thoroughbred racing meetings, recommended
14by them; 2 representatives of the Illinois Thoroughbred
15Breeders and Owners Foundation, recommended by it; one
16representative and 2 representatives of the Horsemen's
17Benevolent Protective Association; and one representative from
18the Illinois Thoroughbred Horsemen's Association or any
19successor organization established in Illinois comprised of
20the largest number of owners and trainers, recommended by it,
21with one representative of the Horsemen's Benevolent and
22Protective Association to come from its Illinois Division, and
23one from its Chicago Division. Advisory Board members shall
24serve for 2 years commencing January 1 of each odd numbered
25year. If representatives of the organization licensees
26conducting thoroughbred racing meetings, the Illinois

 

 

09700SB1849ham002- 209 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 210 -LRB097 07133 AMC 59587 a

1    supplements for claiming races in which the minimum
2    claiming price is less than $7,500.
3        (2) To provide stakes and awards to be paid to the
4    owners of the winning horses in certain races limited to
5    Illinois conceived and foaled and Illinois foaled horses
6    designated as stakes races.
7        (2.5) To provide an award to the owner or owners of an
8    Illinois conceived and foaled or Illinois foaled horse that
9    wins a maiden special weight, an allowance, overnight
10    handicap race, or claiming race with claiming price of
11    $10,000 or more providing the race is not restricted to
12    Illinois conceived and foaled or Illinois foaled horses.
13    Awards shall also be provided to the owner or owners of
14    Illinois conceived and foaled and Illinois foaled horses
15    that place second or third in those races. To the extent
16    that additional moneys are required to pay the minimum
17    additional awards of 40% of the purse the horse earns for
18    placing first, second or third in those races for Illinois
19    foaled horses and of 60% of the purse the horse earns for
20    placing first, second or third in those races for Illinois
21    conceived and foaled horses, those moneys shall be provided
22    from the purse account at the track where earned.
23        (3) To provide stallion awards to the owner or owners
24    of any stallion that is duly registered with the Illinois
25    Thoroughbred Breeders Fund Program prior to the effective
26    date of this amendatory Act of 1995 whose duly registered

 

 

09700SB1849ham002- 211 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 212 -LRB097 07133 AMC 59587 a

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

 

 

09700SB1849ham002- 213 -LRB097 07133 AMC 59587 a

1by the organization licensee conducting the horse race meeting.
2Such sum shall be paid 50% from the organization licensee's
3account and 50% from the purse account of the licensee share of
4the money wagered as follows: 11 1/2% to the breeder of the
5