SB1849 EnrolledLRB097 07133 ASK 47234 b

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

 
5    Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 1-5. 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
16provided in the Illinois Gambling Act.
17    "City" means the City of Chicago.
18    "Casino operator licensee" means any person or entity
19selected by the Authority and approved and licensed by the
20Gaming Board to manage and operate a casino within the City of
21Chicago pursuant to a casino management contract.
22    "Casino management contract" means a legally binding

 

 

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1agreement between the Authority and a casino operator licensee
2to operate or manage a casino.
3    "Executive director" means the person appointed by the
4Board to oversee the daily operations of the Authority.
5    "Gaming Board" means the Illinois Gaming Board created by
6the Illinois Gambling Act.
7    "Mayor" means the Mayor of the City.
 
8    Section 1-12. Creation of the Authority. There is hereby
9created a political subdivision, unit of local government with
10only the powers authorized by law, body politic, and municipal
11corporation, by the name and style of the Chicago Casino
12Development Authority.
 
13    Section 1-13. Duties of the Authority. It shall be the duty
14of the Authority, as a casino licensee under the Illinois
15Gambling Act, to promote and maintain a casino in the City. The
16Authority shall construct, equip, and maintain grounds,
17buildings, and facilities for that purpose. The Authority shall
18contract with a casino operator licensee to manage and operate
19the casino and in no event shall the Authority or City manage
20or operate the casino. The Authority may contract with other
21third parties in order to fulfill its purpose. The Authority is
22responsible for the payment of any fees required of a casino
23operator under subsection (a) of Section 7.8 of the Illinois
24Gambling Act if the casino operator licensee is late in paying

 

 

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1any such fees. The Authority is granted all rights and powers
2necessary to perform such duties. The Authority and casino
3operator licensee are subject to the Illinois Gambling Act and
4all of the rules of the Gaming Board.
 
5    Section 1-15. Board.
6    (a) The governing and administrative powers of the
7Authority shall be vested in a body known as the Chicago Casino
8Development Board. The Board shall consist of 5 members
9appointed by the Mayor. All appointees shall be subject to
10background investigation and approval by the Gaming Board. One
11of these members shall be designated by the Mayor to serve as
12chairperson. All of the members appointed by the Mayor shall be
13residents of the City.
14    (b) Board members shall receive $300 for each day the
15Authority meets and shall be entitled to reimbursement of
16reasonable expenses incurred in the performance of their
17official duties. A Board member who serves in the office of
18secretary-treasurer may also receive compensation for services
19provided as that officer.
 
20    Section 1-20. Terms of appointments; resignation and
21removal.
22    (a) The Mayor shall appoint 2 members of the Board for an
23initial term expiring July 1 of the year following approval by
24the Gaming Board, 2 members for an initial term expiring July 1

 

 

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

 

 

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1Board shall organize for the transaction of business. The Board
2shall prescribe the time and place for meetings, the manner in
3which special meetings may be called, and the notice that must
4be given to members. All actions and meetings of the Board
5shall be subject to the provisions of the Open Meetings Act.
6Three members of the Board shall constitute a quorum. All
7substantive action of the Board shall be by resolution with an
8affirmative vote of a majority of the members.
 
9    Section 1-30. Executive director; officers.
10    (a) The Board shall appoint an executive director, subject
11to completion of a background investigation and approval by the
12Gaming Board, who shall be the chief executive officer of the
13Authority. The Board shall fix the compensation of the
14executive director. Subject to the general control of the
15Board, the executive director shall be responsible for the
16management of the business, properties, and employees of the
17Authority. The executive director shall direct the enforcement
18of all resolutions, rules, and regulations of the Board, and
19shall perform such other duties as may be prescribed from time
20to time by the Board. All employees and independent
21contractors, consultants, engineers, architects, accountants,
22attorneys, financial experts, construction experts and
23personnel, superintendents, managers, and other personnel
24appointed or employed pursuant to this Act shall report to the
25executive director. In addition to any other duties set forth

 

 

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1in this Act, the executive director shall do all of the
2following:
3        (1) Direct and supervise the administrative affairs
4    and activities of the Authority in accordance with its
5    rules, regulations, and policies.
6        (2) Attend meetings of the Board.
7        (3) Keep minutes of all proceedings of the Board.
8        (4) Approve all accounts for salaries, per diem
9    payments, and allowable expenses of the Board and its
10    employees and consultants.
11        (5) Report and make recommendations to the Board
12    concerning the terms and conditions of any casino
13    management contract.
14        (6) Perform any other duty that the Board requires for
15    carrying out the provisions of this Act.
16        (7) Devote his or her full time to the duties of the
17    office and not hold any other office or employment.
18    (b) The Board may select a secretary-treasurer to hold
19office at the pleasure of the Board. The Board shall fix the
20duties of such officer.
 
21    Section 1-31. General rights and powers of the Authority.
22In addition to the duties and powers set forth in this Act, the
23Authority shall have the following rights and powers:
24        (1) Adopt and alter an official seal.
25        (2) Establish and change its fiscal year.

 

 

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1        (3) Sue and be sued, plead and be impleaded, all in its
2    own name, and agree to binding arbitration of any dispute
3    to which it is a party.
4        (4) Adopt, amend, and repeal bylaws, rules, and
5    regulations consistent with the furtherance of the powers
6    and duties provided for.
7        (5) Maintain its principal office within the City and
8    such other offices as the Board may designate.
9        (6) Select locations in the City for a temporary and a
10    permanent casino, subject to final approval by the Gaming
11    Board, but in no event shall any location be in or at an
12    airport.
13        (7) Conduct background investigations of potential
14    casino operator licensees, including its principals or
15    shareholders, and Authority staff.
16        (8) Employ, either as regular employees or independent
17    contractors, consultants, engineers, architects,
18    accountants, attorneys, financial experts, construction
19    experts and personnel, superintendents, managers and other
20    professional personnel, and such other personnel as may be
21    necessary in the judgment of the Board, and fix their
22    compensation.
23        (9) Own, acquire, construct, equip, lease, operate,
24    and maintain grounds, buildings, and facilities to carry
25    out its corporate purposes and duties.
26        (10) Enter into, revoke, and modify contracts in

 

 

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1    accordance with the rules and procedures of the Gaming
2    Board.
3        (11) Enter into a casino management contract subject to
4    the final approval of the Gaming Board.
5        (12) Develop, or cause to be developed by a third
6    party, a master plan for the design, planning, and
7    development of a casino.
8        (13) Negotiate and enter into intergovernmental
9    agreements with the State and its agencies, the City, and
10    other units of local government, in furtherance of the
11    powers and duties of the Board.
12        (14) Receive and disburse funds for its own corporate
13    purposes or as otherwise specified in this Act.
14        (15) Borrow money from any source, public or private,
15    for any corporate purpose, including, without limitation,
16    working capital for its operations, reserve funds, or
17    payment of interest, and to mortgage, pledge, or otherwise
18    encumber the property or funds of the Authority and to
19    contract with or engage the services of any person in
20    connection with any financing, including financial
21    institutions, issuers of letters of credit, or insurers and
22    enter into reimbursement agreements with this person or
23    entity which may be secured as if money were borrowed from
24    the person or entity.
25        (16) Issue bonds as provided for under this Act.
26        (17) Receive and accept from any source, private or

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1or employee has made a decision that directly applied to the
2person or entity, or its parent or affiliate.
3    (l) No Board member or employee of the Authority may
4attempt, in any way, to influence any person or corporation
5doing business with the Authority or any officer, agent, or
6employee thereof to hire or contract with any person or
7corporation for any compensated work.
8    (m) Any communication between an elected official of the
9City and any applicant for or party to a casino management
10contract with the Authority, or an officer, director, or
11employee thereof, concerning any matter relating in any way to
12gaming or the Authority shall be disclosed to the Board and the
13Gaming Board. Such disclosure shall be in writing by the
14official within 30 days after the communication and shall be
15filed with the Board. Disclosure must consist of the date of
16the communication, the identity and job title of the person
17with whom the communication was made, a brief summary of the
18communication, the action requested or recommended, all
19responses made, the identity and job title of the person making
20the response, and any other pertinent information.
21    Public disclosure of the written summary provided to the
22Board and the Gaming Board shall be subject to the exemptions
23provided under Section 7 of the Freedom of Information Act.
24    (n) Any Board member or employee of the Authority who
25violates any provision of this Section is guilty of a Class 4
26felony.
 

 

 

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

 

 

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1operation of a casino. Validity of the casino management
2contract is contingent upon the issuance of a casino operator
3license to the successful bidder. If the Gaming Board approves
4the contract and grants a casino operator license, the Board
5shall transmit a copy of the executed casino management
6contract to the Gaming Board.
7    (d) After the Authority has been issued a casino license,
8the Gaming Board has issued a casino operator license, and the
9Gaming Board has approved the location of a temporary facility,
10the Authority may conduct gaming operations at a temporary
11facility for no longer than 24 months after gaming operations
12begin. The Gaming Board may, after holding a public hearing,
13grant an extension so long as a permanent facility is not
14operational and the Authority is working in good faith to
15complete the permanent facility. The Gaming Board may grant
16additional extensions following a public hearing. Each
17extension may be for a period of no longer than 6 months.
18    (e) Fifty percent of any initial consideration received by
19the Authority that was paid as an inducement pursuant to a bid
20for a casino management contract or an executed casino
21management contract must be transmitted to the State and
22deposited into the Gaming Facilities Fee Revenue Fund. The
23initial consideration shall not include any amounts paid by an
24entity on behalf of the Authority for any license or per
25position fees imposed pursuant to the Illinois Gambling Act or
26any other financial obligation of the Authority.
 

 

 

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1    Section 1-50. Transfer of funds. The revenues received by
2the Authority (other than amounts required to be paid pursuant
3to the Illinois Gambling Act and amounts required to pay the
4operating expenses of the Authority, to pay amounts due the
5casino operator licensee pursuant to a casino management
6contract, to repay any borrowing of the Authority made pursuant
7to Section 1-31, to pay debt service on any bonds issued under
8Section 1-75, and to pay any expenses in connection with the
9issuance of such bonds pursuant to Section 1-75 or derivative
10products pursuant to Section 1-85) shall be transferred to the
11City by the Authority. Moneys transferred to the City pursuant
12to this Section shall be expended or obligated by the City for
13the construction and maintenance of infrastructure and for
14related purposes within the City. Such infrastructure may
15include, but is not limited to, roads, bridges, transit
16infrastructure, water and sewer infrastructure, schools,
17parks, and municipal facilities.
 
18    Section 1-60. Auditor General.
19    (a) Prior to the issuance of bonds under this Act, the
20Authority shall submit to the Auditor General a certification
21that:
22        (1) it is legally authorized to issue bonds;
23        (2) scheduled annual payments of principal and
24    interest on the bonds to be issued meet the requirements of

 

 

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1    Section 1-75 of this Act;
2        (3) no bond shall mature later than 30 years; and
3        (4) after payment of costs of issuance and necessary
4    deposits to funds and accounts established with respect to
5    debt service on the bonds, the net bond proceeds (exclusive
6    of any proceeds to be used to refund outstanding bonds)
7    will be used only for the purposes set forth in this Act.
8    The Authority also shall submit to the Auditor General its
9projections on revenues to be generated and pledged to
10repayment of the bonds as scheduled and such other information
11as the Auditor General may reasonably request.
12    The Auditor General shall examine the certifications and
13information submitted and submit a report to the Authority and
14the Gaming Board indicating whether the required
15certifications, projections, and other information have been
16submitted by the Authority and that the assumptions underlying
17the projections are not unreasonable in the aggregate. The
18Auditor General shall submit the report no later than 60 days
19after receiving the information required to be submitted by the
20Authority.
21    The Authority shall not issue bonds until it receives the
22report from the Auditor General indicating the requirements of
23this Section have been met. The Auditor General's report shall
24not be in the nature of a post-audit or examination and shall
25not lead to the issuance of an opinion, as that term is defined
26in generally accepted government auditing standards. The

 

 

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

 

 

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

 

 

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1    Section 1-67. Limitations on gaming at Chicago airports.
2The Authority may not conduct gaming operations in or at an
3airport.
 
4    Section 1-70. Local regulation. The casino facilities and
5operations therein shall be subject to all ordinances and
6regulations of the City. The construction, development, and
7operation of the casino shall comply with all ordinances,
8regulations, rules, and controls of the City, including but not
9limited to those relating to zoning and planned development,
10building, fire prevention, and land use. However, the
11regulation of gaming operations is subject to the exclusive
12jurisdiction of the Gaming Board.
 
13    Section 1-75. Borrowing.
14    (a) The Authority may borrow money and issue bonds as
15provided in this Section. Bonds of the Authority may be issued
16to provide funds for land acquisition, site assembly and
17preparation, and the design and construction of the casino, as
18defined in the Illinois Gambling Act, all ancillary and related
19facilities comprising the casino complex, and all on-site and
20off-site infrastructure improvements required in connection
21with the development of the casino; to refund (at the time or
22in advance of any maturity or redemption) or redeem any bonds
23of the Authority; to provide or increase a debt service reserve
24fund or other reserves with respect to any or all of its bonds;

 

 

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1or to pay the legal, financial, administrative, bond insurance,
2credit enhancement, and other legal expenses of the
3authorization, issuance, or delivery of bonds. In this Act, the
4term "bonds" also includes notes of any kind, interim
5certificates, refunding bonds, or any other evidence of
6obligation for borrowed money issued under this Section. Bonds
7may be issued in one or more series and may be payable and
8secured either on a parity with or separately from other bonds.
9    (b) The bonds of the Authority shall be payable from one or
10more of the following sources: (i) the property or revenues of
11the Authority; (ii) revenues derived from the casino; (iii)
12revenues derived from any casino operator licensee; (iv) fees,
13bid proceeds, charges, lease payments, payments required
14pursuant to any casino management contract or other revenues
15payable to the Authority, or any receipts of the Authority; (v)
16payments by financial institutions, insurance companies, or
17others pursuant to letters or lines of credit, policies of
18insurance, or purchase agreements; (vi) investment earnings
19from funds or accounts maintained pursuant to a bond resolution
20or trust indenture; (vii) proceeds of refunding bonds; (viii)
21any other revenues derived from or payments by the City; and
22(ix) any payments by any casino operator licensee or others
23pursuant to any guaranty agreement.
24    (c) Bonds shall be authorized by a resolution of the
25Authority and may be secured by a trust indenture by and
26between the Authority and a corporate trustee or trustees,

 

 

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1which may be any trust company or bank having the powers of a
2trust company within or without the State. Bonds shall meet the
3following requirements:
4        (1) Bonds shall bear interest at a rate not to exceed
5    the maximum rate authorized by the Bond Authorization Act.
6        (2) Bonds issued pursuant to this Section may be
7    payable on such dates and times as may be provided for by
8    the resolution or indenture authorizing the issuance of
9    such bonds; provided, however, that such bonds shall mature
10    no later than 30 years from the date of issuance.
11        (3) At least 25%, based on total principal amount, of
12    all bonds issued pursuant to this Section shall be sold
13    pursuant to notice of sale and public bid. No more than
14    75%, based on total principal amount, of all bonds issued
15    pursuant to this Section shall be sold by negotiated sale.
16        (4) Bonds shall be payable at a time or times, in the
17    denominations and form, including book entry form, either
18    coupon, registered, or both, and carry the registration and
19    privileges as to exchange, transfer or conversion, and
20    replacement of mutilated, lost, or destroyed bonds as the
21    resolution or trust indenture may provide.
22        (5) Bonds shall be payable in lawful money of the
23    United States at a designated place.
24        (6) Bonds shall be subject to the terms of purchase,
25    payment, redemption, refunding, or refinancing that the
26    resolution or trust indenture provides.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1of or changes in interest rates, agreements or contracts to
2exchange cash flows or a series of payments, or to hedge
3payment, rate spread, or similar exposure.
 
4    Section 1-90. Legality for investment. The State of
5Illinois, all governmental entities, all public officers,
6banks, bankers, trust companies, savings banks and
7institutions, building and loan associations, savings and loan
8associations, investment companies, and other persons carrying
9on a banking business, insurance companies, insurance
10associations, and other persons carrying on an insurance
11business, and all executors, administrators, guardians,
12trustees, and other fiduciaries may legally invest any sinking
13funds, moneys, or other funds belonging to them or within their
14control in any bonds issued under this Act. However, nothing in
15this Section shall be construed as relieving any person, firm,
16or corporation from any duty of exercising reasonable care in
17selecting securities for purchase or investment.
 
18    Section 1-105. Budgets and reporting.
19    (a) The Board shall annually adopt a budget for each fiscal
20year. The budget may be modified from time to time in the same
21manner and upon the same vote as it may be adopted. The budget
22shall include the Authority's available funds and estimated
23revenues and shall provide for payment of its obligations and
24estimated expenditures for the fiscal year, including, without

 

 

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1limitation, expenditures for administration, operation,
2maintenance and repairs, debt service, and deposits into
3reserve and other funds and capital projects.
4    (b) The Board shall annually cause the finances of the
5Authority to be audited by a firm of certified public
6accountants selected by the Board in accordance with the rules
7of the Gaming Board and post the firm's audits of the Authority
8on the Authority's Internet website.
9    (c) The Board shall, for each fiscal year, prepare an
10annual report setting forth information concerning its
11activities in the fiscal year and the status of the development
12of the casino. The annual report shall include the audited
13financial statements of the Authority for the fiscal year, the
14budget for the succeeding fiscal year, and the current capital
15plan as of the date of the report. Copies of the annual report
16shall be made available to persons who request them and shall
17be submitted not later than 120 days after the end of the
18Authority's fiscal year or, if the audit of the Authority's
19financial statements is not completed within 120 days after the
20end of the Authority's fiscal year, as soon as practical after
21completion of the audit, to the Governor, the Mayor, the
22General Assembly, and the Commission on Government Forecasting
23and Accountability.
 
24    Section 1-110. Deposit and withdrawal of funds.
25    (a) All funds deposited by the Authority in any bank or

 

 

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1savings and loan association shall be placed in the name of the
2Authority and shall be withdrawn or paid out only by check or
3draft upon the bank or savings and loan association, signed by
42 officers or employees designated by the Board.
5Notwithstanding any other provision of this Section, the Board
6may designate any of its members or any officer or employee of
7the Authority to authorize the wire transfer of funds deposited
8by the secretary-treasurer of funds in a bank or savings and
9loan association for the payment of payroll and employee
10benefits-related expenses.
11    No bank or savings and loan association shall receive
12public funds as permitted by this Section unless it has
13complied with the requirements established pursuant to Section
146 of the Public Funds Investment Act.
15    (b) If any officer or employee whose signature appears upon
16any check or draft issued pursuant to this Act ceases (after
17attaching his signature) to hold his or her office before the
18delivery of such a check or draft to the payee, his or her
19signature shall nevertheless be valid and sufficient for all
20purposes with the same effect as if he or she had remained in
21office until delivery thereof.
 
22    Section 1-112. Contracts with the Authority or casino
23operator licensee; disclosure requirements.
24    (a) A bidder, respondent, offeror, or contractor for
25contracts with the Authority or casino operator licensee shall

 

 

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1disclose the identity of all officers and directors and every
2owner, beneficiary, or person with beneficial interest of more
3than 1% or shareholder entitled to receive more than 1% of the
4total distributable income of any corporation having any
5interest in the contract or in the bidder, respondent, offeror,
6or contractor. The disclosure shall be in writing and attested
7to by an owner, trustee, corporate official, or agent. If stock
8in a corporation is publicly traded and there is no readily
9known individual having greater than a 1% interest, then a
10statement to that effect attested to by an officer or agent of
11the corporation shall fulfill the disclosure statement
12requirement of this Section. A bidder, respondent, offeror, or
13contractor shall notify the Authority of any changes in
14officers, directors, ownership, or individuals having a
15beneficial interest of more than 1%.
16    (b) A bidder, respondent, offeror, or contractor for
17contracts with an annual value of $10,000 or more or for a
18period to exceed one year shall disclose all political
19contributions of the bidder, respondent, offeror, or
20contractor and any affiliated person or entity. Disclosure
21shall include at least the names and addresses of the
22contributors and the dollar amounts of any contributions to any
23political committee made within the previous 2 years. The
24disclosure must be submitted to the Gaming Board with a copy of
25the contract.
26    (c) As used in this Section:

 

 

SB1849 Enrolled- 32 -LRB097 07133 ASK 47234 b

1    "Contribution" means contribution as defined in Section
29-1.4 of the Election Code.
3    "Affiliated person" means (i) any person with any ownership
4interest or distributive share of the bidding, responding, or
5contracting entity in excess of 1%, (ii) executive employees of
6the bidding, responding, or contracting entity, and (iii) the
7spouse and minor children of any such persons.
8    "Affiliated entity" means (i) any parent or subsidiary of
9the bidding or contracting entity, (ii) any member of the same
10unitary business group, or (iii) any political committee for
11which the bidding, responding, or contracting entity is the
12sponsoring entity.
13    (d) The Gaming Board may direct the Authority or a casino
14operator licensee to void a contract if a violation of this
15Section occurs. The Authority may direct a casino operator
16licensee to void a contract if a violation of this Section
17occurs.
18    (e) All contracts pertaining to the actual operation of the
19casino and related gaming activities shall be entered into by
20the casino operator licensee and not the Authority.
 
21    Section 1-115. Purchasing.
22    (a) All construction contracts and contracts for supplies,
23materials, equipment, and services, when the cost thereof to
24the Authority exceeds $25,000, shall be let by a competitive
25selection process to the lowest responsible proposer, after

 

 

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1advertising for proposals, except for the following:
2        (1) when repair parts, accessories, equipment, or
3    services are required for equipment or services previously
4    furnished or contracted for;
5        (2) when services such as water, light, heat, power,
6    telephone (other than long-distance service), or telegraph
7    are required;
8        (3) casino management contracts, which shall be
9    awarded as set forth in Section 1-45 of this Act;
10        (4) contracts where there is only one economically
11    feasible source; and
12        (5) when a purchase is needed on an immediate,
13    emergency basis because there exists a threat to public
14    health or public safety, or when immediate expenditure is
15    necessary for repairs to Authority property in order to
16    protect against further loss of or damage to Authority
17    property, to prevent or minimize serious disruption in
18    Authority services or to ensure the integrity of Authority
19    records.
20    (b) All contracts involving less than $25,000 shall be let
21by competitive selection process whenever possible, and in any
22event in a manner calculated to ensure the best interests of
23the public.
24    (c) In determining the responsibility of any proposer, the
25Authority may take into account the proposer's (or an
26individual having a beneficial interest, directly or

 

 

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

 

 

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

 

 

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1in response to an advertisement is made or permitted to be made
2by the Authority before the time fixed for opening proposals.
3    (h) Notice of each and every contract that is offered,
4including renegotiated contracts and change orders, shall be
5published in an online bulletin. The online bulletin must
6include at least the date first offered, the date submission of
7offers is due, the location that offers are to be submitted to,
8a brief purchase description, the method of source selection,
9information of how to obtain a comprehensive purchase
10description and any disclosure and contract forms, and
11encouragement to prospective vendors to hire qualified
12veterans, as defined by Section 45-67 of the Illinois
13Procurement Code, and Illinois residents discharged from any
14Illinois adult correctional center subject to Gaming Board
15licensing and eligibility rules. Notice of each and every
16contract that is let or awarded, including renegotiated
17contracts and change orders, shall be published in the online
18bulletin and must include at least all of the information
19specified in this subsection (h), as well as the name of the
20successful responsible proposer or offeror, the contract
21price, and the number of unsuccessful responsive proposers and
22any other disclosure specified in this Section. This notice
23must be posted in the online electronic bulletin prior to
24execution of the contract.
 
25    Section 1-130. Affirmative action and equal opportunity

 

 

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1obligations of Authority.
2    (a) The Authority is subject to the requirements of Article
3IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
4inclusive) of the Chicago Municipal Code, as now or hereafter
5amended, renumbered, or succeeded, concerning a Minority-Owned
6and Women-Owned Business Enterprise Procurement Program for
7construction contracts, and Section 2-92-420 et seq. of the
8Chicago Municipal Code, as now or hereafter amended,
9renumbered, or succeeded, concerning a Minority-Owned and
10Women-Owned Business Enterprise Procurement Program to
11determine the status of a firm as a Minority Business
12Enterprise for city procurement purposes.
13    (b) The Authority is authorized to enter into agreements
14with contractors' associations, labor unions, and the
15contractors working on the development of the casino to
16establish an apprenticeship preparedness training program to
17provide for an increase in the number of minority and female
18journeymen and apprentices in the building trades and to enter
19into agreements with community college districts or other
20public or private institutions to provide readiness training.
21The Authority is further authorized to enter into contracts
22with public and private educational institutions and persons in
23the gaming, entertainment, hospitality, and tourism industries
24to provide training for employment in those industries.
 
25    Section 1-135. Transfer of interest. Neither the Authority

 

 

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1nor the City may sell, lease, rent, transfer, exchange, or
2otherwise convey any interest that they have in the casino
3without prior approval of the General Assembly.
 
4    Section 1-140. Home rule. The regulation and licensing of
5casinos and casino gaming, casino gaming facilities, and casino
6operator licensees under this Act are exclusive powers and
7functions of the State. A home rule unit may not regulate or
8license casinos, casino gaming, casino gaming facilities, or
9casino operator licensees under this Act, except as provided
10under this Act. This Section is a denial and limitation of home
11rule powers and functions under subsection (h) of Section 6 of
12Article VII of the Illinois Constitution.
 
13
ARTICLE 90.

 
14    Section 90-1. Findings. The General Assembly makes all of
15the following findings:
16        (1) That more than 50 municipalities and 5 counties
17    have opted out of video gaming legislation that was enacted
18    by the 96th General Assembly as Public Act 96-34, and
19    revenues for the State's newly approved capital
20    construction program are on track to fall short of
21    projections.
22        (2) That these shortfalls could postpone much-needed
23    road construction, school construction, and other

 

 

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1    infrastructure improvements.
2        (3) That the State likely will wait a year or more,
3    until video gaming is licensed, organized, and online, to
4    realize meaningful revenue from the program.
5        (4) That a significant infusion of new revenue is
6    necessary to ensure that those projects, which are
7    fundamental to the State's economic recovery, proceed as
8    planned.
9        (5) That the decline of the Illinois horse racing and
10    breeding program, a $2.5 billion industry, would be
11    reversed if this amendatory Act of the 97th General
12    Assembly would be enacted.
13        (6) That the Illinois horse racing industry is on the
14    verge of extinction due to fierce competition from fully
15    developed horse racing and gaming operations in other
16    states.
17        (7) That Illinois lawmakers agreed in 1999 to earmark
18    15% of the forthcoming 10th riverboat's revenue for horse
19    racing; however, the 10th riverboat did not become
20    operational until July 2011, and as of November 1, 2011, no
21    such payments have been made.
22        (8) That allowing the State's horse racing venues,
23    currently licensed gaming destinations, to maximize their
24    capacities with gaming machines, would generate up to $120
25    million to $200 million for the State in the form of extra
26    licensing fees, plus an additional $100 million to $300

 

 

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1    million in recurring annual tax revenue for the State to
2    help ensure that school, road, and other building projects
3    promised under the capital plan occur on schedule.
4        (9) That Illinois agriculture and other businesses
5    that support and supply the horse racing industry, already
6    a sector that employs over 37,000 Illinoisans, also stand
7    to substantially benefit and would be much more likely to
8    create additional jobs should Illinois horse racing once
9    again become competitive with other states.
10        (10) That by keeping these projects on track, the State
11    can be sure that significant job and economic growth will
12    in fact result from the previously enacted legislation.
13        (11) That gaming machines at Illinois horse racing
14    tracks would create an estimated 1,200 to 1,500 permanent
15    jobs, and an estimated capital investment of up to $200
16    million to $400 million at these race tracks would prompt
17    additional trade organization jobs necessary to construct
18    new facilities or remodel race tracks to operate electronic
19    gaming.
 
20    Section 90-3. The State Officials and Employees Ethics Act
21is amended by changing Sections 5-45 and 20-10 as follows:
 
22    (5 ILCS 430/5-45)
23    Sec. 5-45. Procurement; revolving door prohibition.
24    (a) No former officer, member, or State employee, or spouse

 

 

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1or immediate family member living with such person, shall,
2within a period of one year immediately after termination of
3State employment, knowingly accept employment or receive
4compensation or fees for services from a person or entity if
5the officer, member, or State employee, during the year
6immediately preceding termination of State employment,
7participated personally and substantially in the award of State
8contracts, or the issuance of State contract change orders,
9with a cumulative value of $25,000 or more to the person or
10entity, or its parent or subsidiary.
11    (b) No former officer of the executive branch or State
12employee of the executive branch with regulatory or licensing
13authority, or spouse or immediate family member living with
14such person, shall, within a period of one year immediately
15after termination of State employment, knowingly accept
16employment or receive compensation or fees for services from a
17person or entity if the officer or State employee, during the
18year immediately preceding termination of State employment,
19participated personally and substantially in making a
20regulatory or licensing decision that directly applied to the
21person or entity, or its parent or subsidiary.
22    (c) Within 6 months after the effective date of this
23amendatory Act of the 96th General Assembly, each executive
24branch constitutional officer and legislative leader, the
25Auditor General, and the Joint Committee on Legislative Support
26Services shall adopt a policy delineating which State positions

 

 

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1under his or her jurisdiction and control, by the nature of
2their duties, may have the authority to participate personally
3and substantially in the award of State contracts or in
4regulatory or licensing decisions. The Governor shall adopt
5such a policy for all State employees of the executive branch
6not under the jurisdiction and control of any other executive
7branch constitutional officer.
8    The policies required under subsection (c) of this Section
9shall be filed with the appropriate ethics commission
10established under this Act or, for the Auditor General, with
11the Office of the Auditor General.
12    (d) Each Inspector General shall have the authority to
13determine that additional State positions under his or her
14jurisdiction, not otherwise subject to the policies required by
15subsection (c) of this Section, are nonetheless subject to the
16notification requirement of subsection (f) below due to their
17involvement in the award of State contracts or in regulatory or
18licensing decisions.
19    (e) The Joint Committee on Legislative Support Services,
20the Auditor General, and each of the executive branch
21constitutional officers and legislative leaders subject to
22subsection (c) of this Section shall provide written
23notification to all employees in positions subject to the
24policies required by subsection (c) or a determination made
25under subsection (d): (1) upon hiring, promotion, or transfer
26into the relevant position; and (2) at the time the employee's

 

 

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1duties are changed in such a way as to qualify that employee.
2An employee receiving notification must certify in writing that
3the person was advised of the prohibition and the requirement
4to notify the appropriate Inspector General in subsection (f).
5    (f) Any State employee in a position subject to the
6policies required by subsection (c) or to a determination under
7subsection (d), but who does not fall within the prohibition of
8subsection (h) below, who is offered non-State employment
9during State employment or within a period of one year
10immediately after termination of State employment shall, prior
11to accepting such non-State employment, notify the appropriate
12Inspector General. Within 10 calendar days after receiving
13notification from an employee in a position subject to the
14policies required by subsection (c), such Inspector General
15shall make a determination as to whether the State employee is
16restricted from accepting such employment by subsection (a) or
17(b). In making a determination, in addition to any other
18relevant information, an Inspector General shall assess the
19effect of the prospective employment or relationship upon
20decisions referred to in subsections (a) and (b), based on the
21totality of the participation by the former officer, member, or
22State employee in those decisions. A determination by an
23Inspector General must be in writing, signed and dated by the
24Inspector General, and delivered to the subject of the
25determination within 10 calendar days or the person is deemed
26eligible for the employment opportunity. For purposes of this

 

 

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

 

 

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1the person is deemed eligible for the employment opportunity.
2    (h) The following officers, members, or State employees
3shall not, within a period of one year immediately after
4termination of office or State employment, knowingly accept
5employment or receive compensation or fees for services from a
6person or entity if the person or entity or its parent or
7subsidiary, during the year immediately preceding termination
8of State employment, was a party to a State contract or
9contracts with a cumulative value of $25,000 or more involving
10the officer, member, or State employee's State agency, or was
11the subject of a regulatory or licensing decision involving the
12officer, member, or State employee's State agency, regardless
13of whether he or she participated personally and substantially
14in the award of the State contract or contracts or the making
15of the regulatory or licensing decision in question:
16        (1) members or officers;
17        (2) members of a commission or board created by the
18    Illinois Constitution;
19        (3) persons whose appointment to office is subject to
20    the advice and consent of the Senate;
21        (4) the head of a department, commission, board,
22    division, bureau, authority, or other administrative unit
23    within the government of this State;
24        (5) chief procurement officers, State purchasing
25    officers, and their designees whose duties are directly
26    related to State procurement; and

 

 

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1        (6) chiefs of staff, deputy chiefs of staff, associate
2    chiefs of staff, assistant chiefs of staff, and deputy
3    governors; .
4        (7) employees of the Illinois Racing Board; and
5        (8) employees of the Illinois Gaming board.
6(Source: P.A. 96-555, eff. 8-18-09.)
 
7    (5 ILCS 430/20-10)
8    Sec. 20-10. Offices of Executive Inspectors General.
9    (a) Six Five independent Offices of the Executive Inspector
10General are created, one each for the Governor, the Attorney
11General, the Secretary of State, the Comptroller, and the
12Treasurer and one for gaming activities. Each Office shall be
13under the direction and supervision of an Executive Inspector
14General and shall be a fully independent office with separate
15appropriations.
16    (b) The Governor, Attorney General, Secretary of State,
17Comptroller, and Treasurer shall each appoint an Executive
18Inspector General, and the Governor shall appoint an Executive
19Inspector General for gaming activities. Each appointment must
20be made without regard to political affiliation and solely on
21the basis of integrity and demonstrated ability. Appointments
22shall be made by and with the advice and consent of the Senate
23by three-fifths of the elected members concurring by record
24vote. Any nomination not acted upon by the Senate within 60
25session days of the receipt thereof shall be deemed to have

 

 

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1received the advice and consent of the Senate. If, during a
2recess of the Senate, there is a vacancy in an office of
3Executive Inspector General, the appointing authority shall
4make a temporary appointment until the next meeting of the
5Senate when the appointing authority shall make a nomination to
6fill that office. No person rejected for an office of Executive
7Inspector General shall, except by the Senate's request, be
8nominated again for that office at the same session of the
9Senate or be appointed to that office during a recess of that
10Senate.
11    Nothing in this Article precludes the appointment by the
12Governor, Attorney General, Secretary of State, Comptroller,
13or Treasurer of any other inspector general required or
14permitted by law. The Governor, Attorney General, Secretary of
15State, Comptroller, and Treasurer each may appoint an existing
16inspector general as the Executive Inspector General required
17by this Article, provided that such an inspector general is not
18prohibited by law, rule, jurisdiction, qualification, or
19interest from serving as the Executive Inspector General
20required by this Article. An appointing authority may not
21appoint a relative as an Executive Inspector General.
22    Each Executive Inspector General shall have the following
23qualifications:
24        (1) has not been convicted of any felony under the laws
25    of this State, another State, or the United States;
26        (2) has earned a baccalaureate degree from an

 

 

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1    institution of higher education; and
2        (3) has 5 or more years of cumulative service (A) with
3    a federal, State, or local law enforcement agency, at least
4    2 years of which have been in a progressive investigatory
5    capacity; (B) as a federal, State, or local prosecutor; (C)
6    as a senior manager or executive of a federal, State, or
7    local agency; (D) as a member, an officer, or a State or
8    federal judge; or (E) representing any combination of (A)
9    through (D).
10    The term of each initial Executive Inspector General shall
11commence upon qualification and shall run through June 30,
122008. The initial appointments shall be made within 60 days
13after the effective date of this Act.
14    After the initial term, each Executive Inspector General
15shall serve for 5-year terms commencing on July 1 of the year
16of appointment and running through June 30 of the fifth
17following year. An Executive Inspector General may be
18reappointed to one or more subsequent terms.
19    A vacancy occurring other than at the end of a term shall
20be filled by the appointing authority only for the balance of
21the term of the Executive Inspector General whose office is
22vacant.
23    Terms shall run regardless of whether the position is
24filled.
25    (c) The Executive Inspector General appointed by the
26Attorney General shall have jurisdiction over the Attorney

 

 

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1General and all officers and employees of, and vendors and
2others doing business with, State agencies within the
3jurisdiction of the Attorney General. The Executive Inspector
4General appointed by the Secretary of State shall have
5jurisdiction over the Secretary of State and all officers and
6employees of, and vendors and others doing business with, State
7agencies within the jurisdiction of the Secretary of State. The
8Executive Inspector General appointed by the Comptroller shall
9have jurisdiction over the Comptroller and all officers and
10employees of, and vendors and others doing business with, State
11agencies within the jurisdiction of the Comptroller. The
12Executive Inspector General appointed by the Treasurer shall
13have jurisdiction over the Treasurer and all officers and
14employees of, and vendors and others doing business with, State
15agencies within the jurisdiction of the Treasurer. The
16Executive Inspector General appointed by the Governor shall
17have jurisdiction over (i) the Governor, (ii) the Lieutenant
18Governor, (iii) all officers and employees of, and vendors and
19others doing business with, executive branch State agencies
20under the jurisdiction of the Executive Ethics Commission and
21not within the jurisdiction of the Attorney General, the
22Secretary of State, the Comptroller, or the Treasurer, or the
23Executive Inspector General for gaming activities, and (iv) all
24board members and employees of the Regional Transit Boards and
25all vendors and others doing business with the Regional Transit
26Boards. The Executive Inspector General for gaming activities

 

 

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1appointed by the Governor has jurisdiction over the Illinois
2Gaming Board, all officers and employees of the Illinois Gaming
3Board, and all activities of the Illinois Gaming Board.
4    The jurisdiction of each Executive Inspector General is to
5investigate allegations of fraud, waste, abuse, mismanagement,
6misconduct, nonfeasance, misfeasance, malfeasance, or
7violations of this Act or violations of other related laws and
8rules.
9    (d) The compensation for each Executive Inspector General
10shall be determined by the Executive Ethics Commission and
11shall be made from appropriations made to the Comptroller for
12this purpose. Subject to Section 20-45 of this Act, each
13Executive Inspector General has full authority to organize his
14or her Office of the Executive Inspector General, including the
15employment and determination of the compensation of staff, such
16as deputies, assistants, and other employees, as
17appropriations permit. A separate appropriation shall be made
18for each Office of Executive Inspector General.
19    (e) No Executive Inspector General or employee of the
20Office of the Executive Inspector General may, during his or
21her term of appointment or employment:
22        (1) become a candidate for any elective office;
23        (2) hold any other elected or appointed public office
24    except for appointments on governmental advisory boards or
25    study commissions or as otherwise expressly authorized by
26    law;

 

 

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1        (3) be actively involved in the affairs of any
2    political party or political organization; or
3        (4) advocate for the appointment of another person to
4    an appointed or elected office or position or actively
5    participate in any campaign for any elective office.
6    In this subsection an appointed public office means a
7position authorized by law that is filled by an appointing
8authority as provided by law and does not include employment by
9hiring in the ordinary course of business.
10    (e-1) No Executive Inspector General or employee of the
11Office of the Executive Inspector General may, for one year
12after the termination of his or her appointment or employment:
13        (1) become a candidate for any elective office;
14        (2) hold any elected public office; or
15        (3) hold any appointed State, county, or local judicial
16    office.
17    (e-2) The requirements of item (3) of subsection (e-1) may
18be waived by the Executive Ethics Commission.
19    (f) An Executive Inspector General may be removed only for
20cause and may be removed only by the appointing constitutional
21officer. At the time of the removal, the appointing
22constitutional officer must report to the Executive Ethics
23Commission the justification for the removal.
24(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
 
25    Section 90-5. The Alcoholism and Other Drug Abuse and

 

 

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

 

 

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1program. Subject to appropriation, either the Department or the
2private or public entity shall implement the toll-free
3telephone number, promote public awareness, and conduct
4in-service training concerning problem and compulsive
5gambling.
6    (c) Subject to appropriation, the Department shall produce
7and supply the signs specified in Section 10.7 of the Illinois
8Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
91975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
10of the Charitable Games Act, and Section 13.1 of the Illinois
11Riverboat Gambling Act.
12(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
13    Section 90-7. The Department of Commerce and Economic
14Opportunity Law of the Civil Administrative Code of Illinois is
15amended by adding Section 605-530 as follows:
 
16    (20 ILCS 605/605-530 new)
17    Sec. 605-530. The Depressed Communities Economic
18Development Board.
19    (a) The Depressed Communities Economic Development Board
20is created as an advisory board within the Department of
21Commerce and Economic Opportunity. The Board shall consist of 8
22members appointed by the Governor, 4 of whom are appointed to
23serve an initial term of one year and 4 of whom are appointed
24to serve an initial term of 2 years with one being designated

 

 

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

 

 

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1conditioned with the grant. For the purposes of this subsection
2(c), plans for revitalizing an Illinois depressed community
3include plans intended to curb high levels of poverty,
4unemployment, job and population loss, and general distress. An
5Illinois depressed community is an area where the poverty rate,
6as determined by using the most recent data released by the
7United States Census Bureau, is at least 3% greater than the
8State poverty rate as determined by using the most recent data
9released by the United States Census Bureau.
 
10    Section 90-8. The Illinois Lottery Law is amended by
11changing Section 9.1 as follows:
 
12    (20 ILCS 1605/9.1)
13    Sec. 9.1. Private manager and management agreement.
14    (a) As used in this Section:
15    "Offeror" means a person or group of persons that responds
16to a request for qualifications under this Section.
17    "Request for qualifications" means all materials and
18documents prepared by the Department to solicit the following
19from offerors:
20        (1) Statements of qualifications.
21        (2) Proposals to enter into a management agreement,
22    including the identity of any prospective vendor or vendors
23    that the offeror intends to initially engage to assist the
24    offeror in performing its obligations under the management

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    successor manager of the lottery, including the
2    Department, following the termination of or foreclosure
3    upon the management agreement.
4        (21) Right of use of copyrights, trademarks, and
5    service marks held by the Department in the name of the
6    State. The agreement must provide that any use of them by
7    the manager shall only be for the purpose of fulfilling its
8    obligations under the management agreement during the term
9    of the agreement.
10        (22) The disclosure of any information requested by the
11    Department to enable it to comply with the reporting
12    requirements and information requests provided for under
13    subsection (p) of this Section.
14    (e) Notwithstanding any other law to the contrary, the
15Department shall select a private manager through a competitive
16request for qualifications process consistent with Section
1720-35 of the Illinois Procurement Code, which shall take into
18account:
19        (1) the offeror's ability to market the Lottery to
20    those residents who are new, infrequent, or lapsed players
21    of the Lottery, especially those who are most likely to
22    make regular purchases on the Internet;
23        (2) the offeror's ability to address the State's
24    concern with the social effects of gambling on those who
25    can least afford to do so;
26        (3) the offeror's ability to provide the most

 

 

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

 

 

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

 

 

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

 

 

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1    (i) Any action to contest the private manager selected by
2the Governor under this Section must be brought within 7
3calendar days after the publication of the notice of the
4designation of the private manager as provided in subsection
5(h) of this Section.
6    (j) The Lottery shall remain, for so long as a private
7manager manages the Lottery in accordance with provisions of
8this Act, a Lottery conducted by the State, and the State shall
9not be authorized to sell or transfer the Lottery to a third
10party.
11    (k) Any tangible personal property used exclusively in
12connection with the lottery that is owned by the Department and
13leased to the private manager shall be owned by the Department
14in the name of the State and shall be considered to be public
15property devoted to an essential public and governmental
16function.
17    (l) The Department may exercise any of its powers under
18this Section or any other law as necessary or desirable for the
19execution of the Department's powers under this Section.
20    (m) Neither this Section nor any management agreement
21entered into under this Section prohibits the General Assembly
22from authorizing forms of gambling that are not in direct
23competition with the Lottery. The forms of gambling authorized
24by this amendatory Act of the 97th General Assembly constitute
25authorized forms of gambling that are not in direct competition
26with the Lottery.

 

 

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

 

 

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

 

 

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1subsections (f), (g), (h), and (i) of this Section. The Chief
2Procurement Officer shall also implement and administer the
3adopted selection process upon the termination of a private
4management agreement. The Department, after the Chief
5Procurement Officer certifies that the procurement process has
6been followed in accordance with the rules adopted under this
7subsection (o), shall select a final offeror as the private
8manager and sign the management agreement with the private
9manager.
10    Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and
1121.8, the Department shall distribute all proceeds of lottery
12tickets and shares sold in the following priority and manner:
13        (1) The payment of prizes and retailer bonuses.
14        (2) The payment of costs incurred in the operation and
15    administration of the Lottery, including the payment of
16    sums due to the private manager under the management
17    agreement with the Department.
18        (3) On the last day of each month or as soon thereafter
19    as possible, the State Comptroller shall direct and the
20    State Treasurer shall transfer from the Lottery Fund to the
21    Common School Fund an amount that is equal to the proceeds
22    transferred in the corresponding month of fiscal year 2009,
23    as adjusted for inflation, to the Common School Fund.
24        (4) On or before the last day of each fiscal year,
25    deposit any remaining proceeds, subject to payments under
26    items (1), (2), and (3) into the Capital Projects Fund each

 

 

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1    fiscal year.
2    (p) The Department shall be subject to the following
3reporting and information request requirements:
4        (1) the Department shall submit written quarterly
5    reports to the Governor and the General Assembly on the
6    activities and actions of the private manager selected
7    under this Section;
8        (2) upon request of the Chief Procurement Officer, the
9    Department shall promptly produce information related to
10    the procurement activities of the Department and the
11    private manager requested by the Chief Procurement
12    Officer; the Chief Procurement Officer must retain
13    confidential, proprietary, or trade secret information
14    designated by the Department in complete confidence
15    pursuant to subsection (g) of Section 7 of the Freedom of
16    Information Act; and
17        (3) at least 30 days prior to the beginning of the
18    Department's fiscal year, the Department shall prepare an
19    annual written report on the activities of the private
20    manager selected under this Section and deliver that report
21    to the Governor and General Assembly.
22(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
23eff. 12-23-09; 97-464, eff. 8-19-11.)
 
24    Section 90-10. The Department of Revenue Law of the Civil
25Administrative Code of Illinois is amended by changing Section

 

 

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12505-305 as follows:
 
2    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
3    Sec. 2505-305. Investigators.
4    (a) The Department has the power to appoint investigators
5to conduct all investigations, searches, seizures, arrests,
6and other duties imposed under the provisions of any law
7administered by the Department. Except as provided in
8subsection (c), these investigators have and may exercise all
9the powers of peace officers solely for the purpose of
10enforcing taxing measures administered by the Department.
11    (b) The Director must authorize to each investigator
12employed under this Section and to any other employee of the
13Department exercising the powers of a peace officer a distinct
14badge that, on its face, (i) clearly states that the badge is
15authorized by the Department and (ii) contains a unique
16identifying number. No other badge shall be authorized by the
17Department.
18    (c) The Department may enter into agreements with the
19Illinois Gaming Board providing that investigators appointed
20under this Section shall exercise the peace officer powers set
21forth in paragraph (20.6) of subsection (c) of Section 5 of the
22Illinois Riverboat Gambling Act.
23(Source: P.A. 96-37, eff. 7-13-09.)
 
24    Section 90-12. The Illinois State Auditing Act is amended

 

 

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

 

 

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

 

 

SB1849 Enrolled- 75 -LRB097 07133 ASK 47234 b

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

 

 

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1    The Auditor General of the State of Illinois shall annually
2conduct or cause to be conducted a financial and compliance
3audit of the books and records of any county water commission
4organized pursuant to the Water Commission Act of 1985 and
5shall file a copy of the report of that audit with the Governor
6and the Legislative Audit Commission. The filed audit shall be
7open to the public for inspection. The cost of the audit shall
8be charged to the county water commission in accordance with
9Section 6z-27 of the State Finance Act. The county water
10commission shall make available to the Auditor General its
11books and records and any other documentation, whether in the
12possession of its trustees or other parties, necessary to
13conduct the audit required. These audit requirements apply only
14through July 1, 2007.
15    The Auditor General must conduct audits of the Rend Lake
16Conservancy District as provided in Section 25.5 of the River
17Conservancy Districts Act.
18    The Auditor General must conduct financial audits of the
19Southeastern Illinois Economic Development Authority as
20provided in Section 70 of the Southeastern Illinois Economic
21Development Authority Act.
22    The Auditor General shall conduct a compliance audit in
23accordance with subsections (d) and (f) of Section 30 of the
24Innovation Development and Economy Act.
25(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
2696-939, eff. 6-24-10.)
 

 

 

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1    Section 90-15. The State Finance Act is amended by adding
2Sections 5.809, 5.810, 5.811, 5.812, 5.813, 6z-93, 6z-94, and
36z-95 and by changing Sections 6z-32 and 6z-77 as follows:
 
4    (30 ILCS 105/5.809 new)
5    Sec. 5.809. The State and County Fair Assistance Fund.
 
6    (30 ILCS 105/5.810 new)
7    Sec. 5.810. The Depressed Communities Economic Development
8Fund.
 
9    (30 ILCS 105/5.811 new)
10    Sec. 5.811. The Gaming Facilities Fee Revenue Fund.
 
11    (30 ILCS 105/5.812 new)
12    Sec. 5.812. The State Fairgrounds Infrastructure
13Improvement Fund.
 
14    (30 ILCS 105/5.813 new)
15    Sec. 5.813. The Future of Agriculture Fund.
 
16    (30 ILCS 105/6z-32)
17    Sec. 6z-32. Partners for Planning and Conservation.
18    (a) The Partners for Conservation Fund (formerly known as
19the Conservation 2000 Fund) and the Partners for Conservation

 

 

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

 

 

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1    the part of the landowner and do not involve the use of
2    eminent domain.
3        (3) To develop a systematic and long-term program to
4    effectively measure and monitor natural resources and
5    ecological conditions through investments in technology
6    and involvement of scientific experts.
7        (4) To initiate strategies to enhance, use, and
8    maintain Illinois' inland lakes through education,
9    technical assistance, research, and financial incentives.
10        (5) To partner with private landowners and with units
11    of State, federal, and local government and with
12    not-for-profit organizations in order to integrate State
13    and federal programs with Illinois' natural resource
14    protection and restoration efforts and to meet
15    requirements to obtain federal and other funds for
16    conservation or protection of natural resources.
17    (b) The State Comptroller and State Treasurer shall
18automatically transfer on the last day of each month, beginning
19on September 30, 1995 and ending on June 30, 2021, from the
20General Revenue Fund to the Partners for Conservation Fund, an
21amount equal to 1/10 of the amount set forth below in fiscal
22year 1996 and an amount equal to 1/12 of the amount set forth
23below in each of the other specified fiscal years:
24Fiscal Year Amount
251996$ 3,500,000
261997$ 9,000,000

 

 

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11998$10,000,000
21999$11,000,000
32000$12,500,000
42001 through 2004$14,000,000
52005 $7,000,000
62006 $11,000,000
72007 $0
82008 through 2021........................ $14,000,000
9    (c) Notwithstanding any other provision of law to the
10contrary and in addition to any other transfers that may be
11provided for by law, on the last day of each month beginning on
12July 31, 2006 and ending on June 30, 2007, or as soon
13thereafter as may be practical, the State Comptroller shall
14direct and the State Treasurer shall transfer $1,000,000 from
15the Open Space Lands Acquisition and Development Fund to the
16Conservation 2000 Fund.
17    (d) There shall be deposited into the Partners for
18Conservation Projects Fund such bond proceeds and other moneys
19as may, from time to time, be provided by law.
20    (e) Revenues deposited into the Fund pursuant to subsection
21(b-12) of Section 13 of the Illinois Gambling Act shall be used
22solely for operational grants to soil and water conservation
23districts. Such revenues shall supplement, and not supplant,
24other State funding for soil and water conservation districts.
25(Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-139,
26eff. 1-1-08.)
 

 

 

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1    (30 ILCS 105/6z-77)
2    Sec. 6z-77. The Capital Projects Fund.
3    (a) The Capital Projects Fund is created as a special fund
4in the State Treasury. The State Comptroller and State
5Treasurer shall transfer from the Capital Projects Fund to the
6General Revenue Fund $61,294,550 on October 1, 2009,
7$122,589,100 on January 1, 2010, and $61,294,550 on April 1,
82010. Beginning on July 1, 2010, and on July 1 and January 1 of
9each year thereafter, the State Comptroller and State Treasurer
10shall transfer the sum of $122,589,100 from the Capital
11Projects Fund to the General Revenue Fund.
12    (b) Subject to appropriation, the Capital Projects Fund may
13be used only for capital projects and the payment of debt
14service on bonds issued for capital projects and for transfers
15to the State Fairgrounds Infrastructure Improvement Fund. All
16interest earned on moneys in the Fund shall be deposited into
17the Fund. The Fund shall not be subject to administrative
18charges or chargebacks, such as but not limited to those
19authorized under Section 8h.
20    (c) Annually, the Governor's Office of Management and
21Budget shall determine if revenues deposited into the Fund in
22the fiscal year are expected to exceed the amount needed in the
23fiscal year for capital projects and the payment of debt
24service on bonds issued for capital projects. If any such
25excess amount exists, then on April 1 or as soon thereafter as

 

 

SB1849 Enrolled- 82 -LRB097 07133 ASK 47234 b

1practical, the Governor's Office of Management and Budget shall
2certify such amount, accompanied by a description of the
3process by which the amount was calculated, to the State
4Comptroller and the State Treasurer. Within 15 days after the
5receipt of the certification required by this subsection (c),
6the State Comptroller and the State Treasurer shall transfer
7that amount from the Capital Projects Fund to the Education
8Assistance Fund, except that the amount transferred to the
9Education Assistance Fund pursuant to this subsection (c) shall
10not exceed the estimated amount of revenues that will be
11deposited into the Fund pursuant to Sections 12 and 13 of the
12Illinois Gambling Act in the fiscal year.
13(Source: P.A. 96-34, eff. 7-13-09.)
 
14    (30 ILCS 105/6z-93 new)
15    Sec. 6z-93. The Gaming Facilities Fee Revenue Fund.
16    (a) The Gaming Facilities Fee Revenue Fund is created as a
17special fund in the State treasury.
18    (b) The revenues in the Fund shall be used, subject to
19appropriation, by the Comptroller for the purpose of (i)
20providing appropriations to the Illinois Gaming Board for the
21administration and enforcement of the Illinois Gambling Act and
22(ii) payment of vouchers that are outstanding for more than 60
23days. Whenever practical, the Comptroller must prioritize
24voucher payments for expenses related to medical assistance
25under the Illinois Public Aid Code, the Children's Health

 

 

SB1849 Enrolled- 83 -LRB097 07133 ASK 47234 b

1Insurance Program Act, the Covering ALL KIDS Health Insurance
2Act, and the Senior Citizens and Disabled Persons Property Tax
3Relief and Pharmaceutical Assistance Act.
4    (c) The Fund shall consist of fee revenues received
5pursuant to subsection (e) of Section 1-45 of the Chicago
6Casino Development Authority Act and pursuant to subsections
7(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections
8(c) and (i) of Section 7.6 of the Illinois Gambling Act. All
9interest earned on moneys in the Fund shall be deposited into
10the Fund.
11    (d) The Fund shall not be subject to administrative charges
12or chargebacks, including, but not limited to, those authorized
13under subsection (h) of Section 8 of this Act.
 
14    (30 ILCS 105/6z-94 new)
15    Sec. 6z-94. The State Fairgrounds Infrastructure
16Improvement Fund. There is created the State Fairgrounds
17Infrastructure Improvement Fund, a special fund in the State
18treasury. Moneys in the Fund may be used by the Department of
19Agriculture, subject to appropriation, solely for
20infrastructure improvements to the Illinois State Fairgrounds
21in Sangamon County, including, but not limited to, track
22surfaces (main track and practice track), grandstands, audio
23and visual systems, paddocks and barns and associated surface
24areas, restroom facilities on the backstretch, and roadway
25surfaces around the racing facility. The Director of

 

 

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1Agriculture shall annually certify the amount needed in the
2next fiscal year for such infrastructure improvements. Such
3amount shall not be less than $10,000,000 annually. Upon
4receipt of such certification, the Governor shall direct, and
5the State Comptroller and State Treasurer shall transfer the
6certified amount from the Capital Projects Fund to the State
7Fairgrounds Infrastructure Improvement Fund. The State
8Fairgrounds Infrastructure Improvement Fund is not subject to
9administrative chargebacks, including, but not limited to,
10those authorized under Section 8h of the State Finance Act.
 
11    (30 ILCS 105/6z-95 new)
12    Sec. 6z-95. The Future of Agriculture Fund. There is
13created the Future of Agriculture Fund, a special fund in the
14State treasury. Moneys in the Fund may be used by the
15Department of Agriculture, subject to appropriation, for
16grants to (1) county fairs, as defined by Section 2 of the
17Agricultural Fair Act, (2) the Illinois Association FFA, and
18(3) University of Illinois Extension 4-H programs.
19Additionally, the first $5,000,000 of deposits into the Fund
20shall be used for promotional costs associated with the
21Illinois State Fairgrounds in Sangamon County. The Future of
22Agriculture Fund is not subject to administrative chargebacks,
23including, but not limited to, those authorized under Section
248h of the State Finance Act.
 

 

 

SB1849 Enrolled- 85 -LRB097 07133 ASK 47234 b

1    Section 90-20. The Illinois Income Tax Act is amended by
2changing Section 201 as follows:
 
3    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
4    Sec. 201. Tax Imposed.
5    (a) In general. A tax measured by net income is hereby
6imposed on every individual, corporation, trust and estate for
7each taxable year ending after July 31, 1969 on the privilege
8of earning or receiving income in or as a resident of this
9State. Such tax shall be in addition to all other occupation or
10privilege taxes imposed by this State or by any municipal
11corporation or political subdivision thereof.
12    (b) Rates. The tax imposed by subsection (a) of this
13Section shall be determined as follows, except as adjusted by
14subsection (d-1):
15        (1) In the case of an individual, trust or estate, for
16    taxable years ending prior to July 1, 1989, an amount equal
17    to 2 1/2% of the taxpayer's net income for the taxable
18    year.
19        (2) In the case of an individual, trust or estate, for
20    taxable years beginning prior to July 1, 1989 and ending
21    after June 30, 1989, an amount equal to the sum of (i) 2
22    1/2% of the taxpayer's net income for the period prior to
23    July 1, 1989, as calculated under Section 202.3, and (ii)
24    3% of the taxpayer's net income for the period after June
25    30, 1989, as calculated under Section 202.3.

 

 

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

 

 

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1        (5.3) In the case of an individual, trust, or estate,
2    for taxable years beginning prior to January 1, 2025, and
3    ending after December 31, 2024, an amount equal to the sum
4    of (i) 3.75% of the taxpayer's net income for the period
5    prior to January 1, 2025, as calculated under Section
6    202.5, and (ii) 3.25% of the taxpayer's net income for the
7    period after December 31, 2024, as calculated under Section
8    202.5.
9        (5.4) In the case of an individual, trust, or estate,
10    for taxable years beginning on or after January 1, 2025, an
11    amount equal to 3.25% of the taxpayer's net income for the
12    taxable year.
13        (6) In the case of a corporation, for taxable years
14    ending prior to July 1, 1989, an amount equal to 4% of the
15    taxpayer's net income for the taxable year.
16        (7) In the case of a corporation, for taxable years
17    beginning prior to July 1, 1989 and ending after June 30,
18    1989, an amount equal to the sum of (i) 4% of the
19    taxpayer's net income for the period prior to July 1, 1989,
20    as calculated under Section 202.3, and (ii) 4.8% of the
21    taxpayer's net income for the period after June 30, 1989,
22    as calculated under Section 202.3.
23        (8) In the case of a corporation, for taxable years
24    beginning after June 30, 1989, and ending prior to January
25    1, 2011, an amount equal to 4.8% of the taxpayer's net
26    income for the taxable year.

 

 

SB1849 Enrolled- 88 -LRB097 07133 ASK 47234 b

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

 

 

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

 

 

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

 

 

SB1849 Enrolled- 91 -LRB097 07133 ASK 47234 b

1    The transfer of an electronic gaming license, organization
2license, or race track property by a person other than the
3initial licensee to receive the electronic gaming license is
4not subject to a surcharge. The Department shall adopt rules
5necessary to implement and administer this subsection.
6    (c) Personal Property Tax Replacement Income Tax.
7Beginning on July 1, 1979 and thereafter, in addition to such
8income tax, there is also hereby imposed the Personal Property
9Tax Replacement Income Tax measured by net income on every
10corporation (including Subchapter S corporations), partnership
11and trust, for each taxable year ending after June 30, 1979.
12Such taxes are imposed on the privilege of earning or receiving
13income in or as a resident of this State. The Personal Property
14Tax Replacement Income Tax shall be in addition to the income
15tax imposed by subsections (a) and (b) of this Section and in
16addition to all other occupation or privilege taxes imposed by
17this State or by any municipal corporation or political
18subdivision thereof.
19    (d) Additional Personal Property Tax Replacement Income
20Tax Rates. The personal property tax replacement income tax
21imposed by this subsection and subsection (c) of this Section
22in the case of a corporation, other than a Subchapter S
23corporation and except as adjusted by subsection (d-1), shall
24be an additional amount equal to 2.85% of such taxpayer's net
25income for the taxable year, except that beginning on January
261, 1981, and thereafter, the rate of 2.85% specified in this

 

 

SB1849 Enrolled- 92 -LRB097 07133 ASK 47234 b

1subsection shall be reduced to 2.5%, and in the case of a
2partnership, trust or a Subchapter S corporation shall be an
3additional amount equal to 1.5% of such taxpayer's net income
4for the taxable year.
5    (d-1) Rate reduction for certain foreign insurers. In the
6case of a foreign insurer, as defined by Section 35A-5 of the
7Illinois Insurance Code, whose state or country of domicile
8imposes on insurers domiciled in Illinois a retaliatory tax
9(excluding any insurer whose premiums from reinsurance assumed
10are 50% or more of its total insurance premiums as determined
11under paragraph (2) of subsection (b) of Section 304, except
12that for purposes of this determination premiums from
13reinsurance do not include premiums from inter-affiliate
14reinsurance arrangements), beginning with taxable years ending
15on or after December 31, 1999, the sum of the rates of tax
16imposed by subsections (b) and (d) shall be reduced (but not
17increased) to the rate at which the total amount of tax imposed
18under this Act, net of all credits allowed under this Act,
19shall equal (i) the total amount of tax that would be imposed
20on the foreign insurer's net income allocable to Illinois for
21the taxable year by such foreign insurer's state or country of
22domicile if that net income were subject to all income taxes
23and taxes measured by net income imposed by such foreign
24insurer's state or country of domicile, net of all credits
25allowed or (ii) a rate of zero if no such tax is imposed on such
26income by the foreign insurer's state of domicile. For the

 

 

SB1849 Enrolled- 93 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 94 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 95 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 96 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 97 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 98 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 99 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 100 -LRB097 07133 ASK 47234 b

1        For taxable years ending on or after December 31, 2000,
2    a partner that qualifies its partnership for a subtraction
3    under subparagraph (I) of paragraph (2) of subsection (d)
4    of Section 203 or a shareholder that qualifies a Subchapter
5    S corporation for a subtraction under subparagraph (S) of
6    paragraph (2) of subsection (b) of Section 203 shall be
7    allowed a credit under this subsection (e) equal to its
8    share of the credit earned under this subsection (e) during
9    the taxable year by the partnership or Subchapter S
10    corporation, determined in accordance with the
11    determination of income and distributive share of income
12    under Sections 702 and 704 and Subchapter S of the Internal
13    Revenue Code. This paragraph is exempt from the provisions
14    of Section 250.
15    (f) Investment credit; Enterprise Zone; River Edge
16Redevelopment Zone.
17        (1) A taxpayer shall be allowed a credit against the
18    tax imposed by subsections (a) and (b) of this Section for
19    investment in qualified property which is placed in service
20    in an Enterprise Zone created pursuant to the Illinois
21    Enterprise Zone Act or, for property placed in service on
22    or after July 1, 2006, a River Edge Redevelopment Zone
23    established pursuant to the River Edge Redevelopment Zone
24    Act. For partners, shareholders of Subchapter S
25    corporations, and owners of limited liability companies,
26    if the liability company is treated as a partnership for

 

 

SB1849 Enrolled- 101 -LRB097 07133 ASK 47234 b

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

 

 

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1            (B) is depreciable pursuant to Section 167 of the
2        Internal Revenue Code, except that "3-year property"
3        as defined in Section 168(c)(2)(A) of that Code is not
4        eligible for the credit provided by this subsection
5        (f);
6            (C) is acquired by purchase as defined in Section
7        179(d) of the Internal Revenue Code;
8            (D) is used in the Enterprise Zone or River Edge
9        Redevelopment Zone by the taxpayer; and
10            (E) has not been previously used in Illinois in
11        such a manner and by such a person as would qualify for
12        the credit provided by this subsection (f) or
13        subsection (e).
14        (3) The basis of qualified property shall be the basis
15    used to compute the depreciation deduction for federal
16    income tax purposes.
17        (4) If the basis of the property for federal income tax
18    depreciation purposes is increased after it has been placed
19    in service in the Enterprise Zone or River Edge
20    Redevelopment Zone by the taxpayer, the amount of such
21    increase shall be deemed property placed in service on the
22    date of such increase in basis.
23        (5) The term "placed in service" shall have the same
24    meaning as under Section 46 of the Internal Revenue Code.
25        (6) If during any taxable year, any property ceases to
26    be qualified property in the hands of the taxpayer within

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    on or after December 31, 1987, the credit shall be allowed
2    for the tax year in which the property is placed in
3    service, or, if the amount of the credit exceeds the tax
4    liability for that year, whether it exceeds the original
5    liability or the liability as later amended, such excess
6    may be carried forward and applied to the tax liability of
7    the 5 taxable years following the excess credit year. The
8    credit shall be applied to the earliest year for which
9    there is a liability. If there is credit from more than one
10    tax year that is available to offset a liability, the
11    credit accruing first in time shall be applied first.
12        Changes made in this subdivision (h)(1) by Public Act
13    88-670 restore changes made by Public Act 85-1182 and
14    reflect existing law.
15        (2) The term qualified property means property which:
16            (A) is tangible, whether new or used, including
17        buildings and structural components of buildings;
18            (B) is depreciable pursuant to Section 167 of the
19        Internal Revenue Code, except that "3-year property"
20        as defined in Section 168(c)(2)(A) of that Code is not
21        eligible for the credit provided by this subsection
22        (h);
23            (C) is acquired by purchase as defined in Section
24        179(d) of the Internal Revenue Code; and
25            (D) is not eligible for the Enterprise Zone
26        Investment Credit provided by subsection (f) of this

 

 

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

 

 

SB1849 Enrolled- 110 -LRB097 07133 ASK 47234 b

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

 

 

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1because it exceeds the tax liability imposed by subsections (a)
2and (b) for that year (whether it exceeds the original
3liability or the liability as later amended) may be carried
4forward and applied to the tax liability imposed by subsections
5(a) and (b) of the 5 taxable years following the excess credit
6year, provided that no credit may be carried forward to any
7year ending on or after December 31, 2003. This credit shall be
8applied first to the earliest year for which there is a
9liability. If there is a credit under this subsection from more
10than one tax year that is available to offset a liability the
11earliest credit arising under this subsection shall be applied
12first.
13    If, during any taxable year ending on or after December 31,
141986, the tax imposed by subsections (c) and (d) of this
15Section for which a taxpayer has claimed a credit under this
16subsection (i) is reduced, the amount of credit for such tax
17shall also be reduced. Such reduction shall be determined by
18recomputing the credit to take into account the reduced tax
19imposed by subsections (c) and (d). If any portion of the
20reduced amount of credit has been carried to a different
21taxable year, an amended return shall be filed for such taxable
22year to reduce the amount of credit claimed.
23    (j) Training expense credit. Beginning with tax years
24ending on or after December 31, 1986 and prior to December 31,
252003, a taxpayer shall be allowed a credit against the tax
26imposed by subsections (a) and (b) under this Section for all

 

 

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

 

 

SB1849 Enrolled- 113 -LRB097 07133 ASK 47234 b

1    For tax years ending after July 1, 1990 and prior to
2December 31, 2003, and beginning again for tax years ending on
3or after December 31, 2004, and ending prior to January 1,
42011, a taxpayer shall be allowed a credit against the tax
5imposed by subsections (a) and (b) of this Section for
6increasing research activities in this State. The credit
7allowed against the tax imposed by subsections (a) and (b)
8shall be equal to 6 1/2% of the qualifying expenditures for
9increasing research activities in this State. For partners,
10shareholders of subchapter S corporations, and owners of
11limited liability companies, if the liability company is
12treated as a partnership for purposes of federal and State
13income taxation, there shall be allowed a credit under this
14subsection to be determined in accordance with the
15determination of income and distributive share of income under
16Sections 702 and 704 and subchapter S of the Internal Revenue
17Code.
18    For purposes of this subsection, "qualifying expenditures"
19means the qualifying expenditures as defined for the federal
20credit for increasing research activities which would be
21allowable under Section 41 of the Internal Revenue Code and
22which are conducted in this State, "qualifying expenditures for
23increasing research activities in this State" means the excess
24of qualifying expenditures for the taxable year in which
25incurred over qualifying expenditures for the base period,
26"qualifying expenditures for the base period" means the average

 

 

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1of the qualifying expenditures for each year in the base
2period, and "base period" means the 3 taxable years immediately
3preceding the taxable year for which the determination is being
4made.
5    Any credit in excess of the tax liability for the taxable
6year may be carried forward. A taxpayer may elect to have the
7unused credit shown on its final completed return carried over
8as a credit against the tax liability for the following 5
9taxable years or until it has been fully used, whichever occurs
10first; provided that no credit earned in a tax year ending
11prior to December 31, 2003 may be carried forward to any year
12ending on or after December 31, 2003, and no credit may be
13carried forward to any taxable year ending on or after January
141, 2011.
15    If an unused credit is carried forward to a given year from
162 or more earlier years, that credit arising in the earliest
17year will be applied first against the tax liability for the
18given year. If a tax liability for the given year still
19remains, the credit from the next earliest year will then be
20applied, and so on, until all credits have been used or no tax
21liability for the given year remains. Any remaining unused
22credit or credits then will be carried forward to the next
23following year in which a tax liability is incurred, except
24that no credit can be carried forward to a year which is more
25than 5 years after the year in which the expense for which the
26credit is given was incurred.

 

 

SB1849 Enrolled- 115 -LRB097 07133 ASK 47234 b

1    No inference shall be drawn from this amendatory Act of the
291st General Assembly in construing this Section for taxable
3years beginning before January 1, 1999.
4    (l) Environmental Remediation Tax Credit.
5        (i) For tax years ending after December 31, 1997 and on
6    or before December 31, 2001, a taxpayer shall be allowed a
7    credit against the tax imposed by subsections (a) and (b)
8    of this Section for certain amounts paid for unreimbursed
9    eligible remediation costs, as specified in this
10    subsection. For purposes of this Section, "unreimbursed
11    eligible remediation costs" means costs approved by the
12    Illinois Environmental Protection Agency ("Agency") under
13    Section 58.14 of the Environmental Protection Act that were
14    paid in performing environmental remediation at a site for
15    which a No Further Remediation Letter was issued by the
16    Agency and recorded under Section 58.10 of the
17    Environmental Protection Act. The credit must be claimed
18    for the taxable year in which Agency approval of the
19    eligible remediation costs is granted. The credit is not
20    available to any taxpayer if the taxpayer or any related
21    party caused or contributed to, in any material respect, a
22    release of regulated substances on, in, or under the site
23    that was identified and addressed by the remedial action
24    pursuant to the Site Remediation Program of the
25    Environmental Protection Act. After the Pollution Control
26    Board rules are adopted pursuant to the Illinois

 

 

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

 

 

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

 

 

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1    Environmental Protection Act.
2    (m) Education expense credit. Beginning with tax years
3ending after December 31, 1999, a taxpayer who is the custodian
4of one or more qualifying pupils shall be allowed a credit
5against the tax imposed by subsections (a) and (b) of this
6Section for qualified education expenses incurred on behalf of
7the qualifying pupils. The credit shall be equal to 25% of
8qualified education expenses, but in no event may the total
9credit under this subsection claimed by a family that is the
10custodian of qualifying pupils exceed $500. In no event shall a
11credit under this subsection reduce the taxpayer's liability
12under this Act to less than zero. This subsection is exempt
13from the provisions of Section 250 of this Act.
14    For purposes of this subsection:
15    "Qualifying pupils" means individuals who (i) are
16residents of the State of Illinois, (ii) are under the age of
1721 at the close of the school year for which a credit is
18sought, and (iii) during the school year for which a credit is
19sought were full-time pupils enrolled in a kindergarten through
20twelfth grade education program at any school, as defined in
21this subsection.
22    "Qualified education expense" means the amount incurred on
23behalf of a qualifying pupil in excess of $250 for tuition,
24book fees, and lab fees at the school in which the pupil is
25enrolled during the regular school year.
26    "School" means any public or nonpublic elementary or

 

 

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1secondary school in Illinois that is in compliance with Title
2VI of the Civil Rights Act of 1964 and attendance at which
3satisfies the requirements of Section 26-1 of the School Code,
4except that nothing shall be construed to require a child to
5attend any particular public or nonpublic school to qualify for
6the credit under this Section.
7    "Custodian" means, with respect to qualifying pupils, an
8Illinois resident who is a parent, the parents, a legal
9guardian, or the legal guardians of the qualifying pupils.
10    (n) River Edge Redevelopment Zone site remediation tax
11credit.
12        (i) For tax years ending on or after December 31, 2006,
13    a taxpayer shall be allowed a credit against the tax
14    imposed by subsections (a) and (b) of this Section for
15    certain amounts paid for unreimbursed eligible remediation
16    costs, as specified in this subsection. For purposes of
17    this Section, "unreimbursed eligible remediation costs"
18    means costs approved by the Illinois Environmental
19    Protection Agency ("Agency") under Section 58.14a of the
20    Environmental Protection Act that were paid in performing
21    environmental remediation at a site within a River Edge
22    Redevelopment Zone for which a No Further Remediation
23    Letter was issued by the Agency and recorded under Section
24    58.10 of the Environmental Protection Act. The credit must
25    be claimed for the taxable year in which Agency approval of
26    the eligible remediation costs is granted. The credit is

 

 

SB1849 Enrolled- 120 -LRB097 07133 ASK 47234 b

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

 

 

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1    which there is a liability. If there is a credit under this
2    subsection from more than one tax year that is available to
3    offset a liability, the earliest credit arising under this
4    subsection shall be applied first. A credit allowed under
5    this subsection may be sold to a buyer as part of a sale of
6    all or part of the remediation site for which the credit
7    was granted. The purchaser of a remediation site and the
8    tax credit shall succeed to the unused credit and remaining
9    carry-forward period of the seller. To perfect the
10    transfer, the assignor shall record the transfer in the
11    chain of title for the site and provide written notice to
12    the Director of the Illinois Department of Revenue of the
13    assignor's intent to sell the remediation site and the
14    amount of the tax credit to be transferred as a portion of
15    the sale. In no event may a credit be transferred to any
16    taxpayer if the taxpayer or a related party would not be
17    eligible under the provisions of subsection (i).
18        (iii) For purposes of this Section, the term "site"
19    shall have the same meaning as under Section 58.2 of the
20    Environmental Protection Act.
21(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;
2296-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.
231-13-11; 97-2, eff. 5-6-11.)
 
24    Section 90-23. The Property Tax Code is amended by adding
25Section 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.)
 

 

 

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1    Section 90-30. The Consumer Installment Loan Act is amended
2by changing Section 12.5 as follows:
 
3    (205 ILCS 670/12.5)
4    Sec. 12.5. Limited purpose branch.
5    (a) Upon the written approval of the Director, a licensee
6may maintain a limited purpose branch for the sole purpose of
7making loans as permitted by this Act. A limited purpose branch
8may include an automatic loan machine. No other activity shall
9be conducted at the site, including but not limited to,
10accepting payments, servicing the accounts, or collections.
11    (b) The licensee must submit an application for a limited
12purpose branch to the Director on forms prescribed by the
13Director with an application fee of $300. The approval for the
14limited purpose branch must be renewed concurrently with the
15renewal of the licensee's license along with a renewal fee of
16$300 for the limited purpose branch.
17    (c) The books, accounts, records, and files of the limited
18purpose branch's transactions shall be maintained at the
19licensee's licensed location. The licensee shall notify the
20Director of the licensed location at which the books, accounts,
21records, and files shall be maintained.
22    (d) The licensee shall prominently display at the limited
23purpose branch the address and telephone number of the
24licensee's licensed location.
25    (e) No other business shall be conducted at the site of the

 

 

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1limited purpose branch unless authorized by the Director.
2    (f) The Director shall make and enforce reasonable rules
3for the conduct of a limited purpose branch.
4    (g) A limited purpose branch may not be located within
51,000 feet of a facility operated by an inter-track wagering
6licensee or an organization licensee subject to the Illinois
7Horse Racing Act of 1975, on a riverboat or in a casino subject
8to the Illinois Riverboat Gambling Act, or within 1,000 feet of
9the location at which the riverboat docks or within 1,000 feet
10of a casino.
11(Source: P.A. 90-437, eff. 1-1-98.)
 
12    Section 90-35. The Illinois Horse Racing Act of 1975 is
13amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15.1, 18,
1419, 20, 24, 26, 27, 28, 28.1, 30, 30.5, 31, 31.1, 32.1, 36, and
1540 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36, 34.3,
16and 56 as follows:
 
17    (230 ILCS 5/1.2)
18    Sec. 1.2. Legislative intent. This Act is intended to
19benefit the people of the State of Illinois by encouraging the
20breeding and production of race horses, assisting economic
21development and promoting Illinois tourism. The General
22Assembly finds and declares it to be the public policy of the
23State of Illinois to:
24    (a) support and enhance Illinois' horse racing industry,

 

 

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

 

 

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1    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
2system of wagering" means a form of wagering on the outcome of
3horse races in which wagers are made in various denominations
4on a horse or horses and all wagers for each race are pooled
5and held by a licensee for distribution in a manner approved by
6the Board. "Pari-mutuel system of wagering" shall not include
7wagering on historic races. Wagers may be placed via any method
8or at any location authorized under this Act.
9(Source: P.A. 96-762, eff. 8-25-09.)
 
10    (230 ILCS 5/3.31 new)
11    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
12receipts" means the gross receipts less winnings paid to
13wagerers.
 
14    (230 ILCS 5/3.32 new)
15    Sec. 3.32. Gross receipts. "Gross receipts" means the total
16amount of money exchanged for the purchase of chips, tokens, or
17electronic cards by riverboat or casino patrons or electronic
18gaming patrons.
 
19    (230 ILCS 5/3.33 new)
20    Sec. 3.33. Electronic gaming. "Electronic gaming" means
21slot machine gambling, video game of chance gambling, or
22gambling with electronic gambling games as defined in the
23Illinois Gambling Act or defined by the Illinois Gaming Board

 

 

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

 

 

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

 

 

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

 

 

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1Illinois Gambling Act. In addition, all Board members and
2employees are subject to the restrictions set forth in Section
35-45 of the State Officials and Employees Ethics Act.
4(Source: P.A. 89-16, eff. 5-30-95.)
 
5    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
6    Sec. 9. The Board shall have all powers necessary and
7proper to fully and effectively execute the provisions of this
8Act, including, but not limited to, the following:
9    (a) The Board is vested with jurisdiction and supervision
10over all race meetings in this State, over all licensees doing
11business in this State, over all occupation licensees, and over
12all persons on the facilities of any licensee. Such
13jurisdiction shall include the power to issue licenses to the
14Illinois Department of Agriculture authorizing the pari-mutuel
15system of wagering on harness and Quarter Horse races held (1)
16at the Illinois State Fair in Sangamon County, and (2) at the
17DuQuoin State Fair in Perry County. The jurisdiction of the
18Board shall also include the power to issue licenses to county
19fairs which are eligible to receive funds pursuant to the
20Agricultural Fair Act, as now or hereafter amended, or their
21agents, authorizing the pari-mutuel system of wagering on horse
22races conducted at the county fairs receiving such licenses.
23Such licenses shall be governed by subsection (n) of this
24Section.
25    Upon application, the Board shall issue a license to the

 

 

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1Illinois Department of Agriculture to conduct harness and
2Quarter Horse races at the Illinois State Fair and at the
3DuQuoin State Fairgrounds during the scheduled dates of each
4fair. The Board shall not require and the Department of
5Agriculture shall be exempt from the requirements of Sections
615.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
7(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
8and 25. The Board and the Department of Agriculture may extend
9any or all of these exemptions to any contractor or agent
10engaged by the Department of Agriculture to conduct its race
11meetings when the Board determines that this would best serve
12the public interest and the interest of horse racing.
13    Notwithstanding any provision of law to the contrary, it
14shall be lawful for any licensee to operate pari-mutuel
15wagering or contract with the Department of Agriculture to
16operate pari-mutuel wagering at the DuQuoin State Fairgrounds
17or for the Department to enter into contracts with a licensee,
18employ its owners, employees or agents and employ such other
19occupation licensees as the Department deems necessary in
20connection with race meetings and wagerings.
21    (b) The Board is vested with the full power to promulgate
22reasonable rules and regulations for the purpose of
23administering the provisions of this Act and to prescribe
24reasonable rules, regulations and conditions under which all
25horse race meetings or wagering in the State shall be
26conducted. Such reasonable rules and regulations are to provide

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB1849 Enrolled- 139 -LRB097 07133 ASK 47234 b

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

 

 

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

 

 

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

 

 

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

 

 

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1that are within 100 miles of each other to conduct the
2thoroughbred racing.
3    (e-1) In awarding standardbred racing dates for calendar
4year 2013 and thereafter, the Board shall award at least 310
5racing days, and each organization licensee shall average at
6least 12 races for each racing day awarded. The Board shall
7have the discretion to allocate those racing days among
8organization licensees requesting standardbred racing dates.
9Once awarded by the Board, organization licensees awarded
10standardbred racing dates shall run at least 3,500 races in
11total during that calendar year. Standardbred racing conducted
12in Sangamon County shall not be considered races under this
13subsection (e-1).
14    (e-2) In awarding racing dates for calendar year 2013 and
15thereafter, the Board shall award thoroughbred racing days to
16Cook County organization licensees commensurate with these
17organization licensees' requirement that they shall run at
18least 1,950 thoroughbred races in the aggregate, so long as 2
19organization licensees are conducting electronic gaming
20operations. Additionally, if the organization licensees that
21run thoroughbred races in Cook County are conducting electronic
22gaming operations, the Board shall increase the number of
23thoroughbred races to be run in Cook County in the aggregate to
24at least the following:
25        (i) 2,050 races in any year following the most recent
26    preceding complete calendar year when the combined

 

 

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1    adjusted gross receipts of the electronic gaming licensees
2    operating at Cook County racetracks total in excess of
3    $200,000,000, but do not exceed $250,000,000;
4        (ii) 2,125 races in any year following the most recent
5    preceding complete calendar year when the combined
6    adjusted gross receipts of the electronic gaming licensees
7    operating at Cook County racetracks total in excess of
8    $250,000,000, but do not exceed $300,000,000;
9        (iii) 2,200 races in any year following the most recent
10    preceding complete calendar year when the combined
11    adjusted gross receipts of the electronic gaming licensees
12    operating at Cook County racetracks total in excess of
13    $300,000,000, but do not exceed $350,000,000;
14        (iv) 2,300 races in any year following the most recent
15    preceding complete calendar year when the combined
16    adjusted gross receipts of the electronic gaming licensees
17    operating at Cook County racetracks total in excess of
18    $350,000,000, but do not exceed $400,000,000;
19        (v) 2,375 races in any year following the most recent
20    preceding complete calendar year when the combined
21    adjusted gross receipts of the electronic gaming licensees
22    operating at Cook County racetracks total in excess of
23    $400,000,000, but do not exceed $450,000,000;
24        (vi) 2,450 races in any year following the most recent
25    preceding complete calendar year when the combined
26    adjusted gross receipts of the electronic gaming licensees

 

 

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1    operating at Cook County racetracks total in excess of
2    $450,000,000, but do not exceed $500,000,000;
3        (vii) 2,550 races in any year following the most recent
4    preceding complete calendar year when the combined
5    adjusted gross receipts of the electronic gaming licensees
6    operating at Cook County racetracks exceeds $500,000,000.
7    In awarding racing dates under this subsection (e-2), the
8Board shall have the discretion to allocate those thoroughbred
9racing dates among these Cook County organization licensees.
10    (e-3) In awarding racing dates for calendar year 2013 and
11thereafter in connection with a race track in Madison County,
12the Board shall award racing dates and such organization
13licensee shall run at least 700 thoroughbred races at the race
14track in Madison County each year.
15    Notwithstanding Section 7.6 of the Illinois Gambling Act or
16any provision of this Act other than subsection (e-4.5), for
17each calendar year for which an electronic gaming licensee
18located in Madison County requests racing dates resulting in
19less than 700 live thoroughbred races at its race track
20facility, the electronic gaming licensee may not conduct
21electronic gaming for the calendar year of such requested live
22races.
23    (e-4) Notwithstanding the provisions of Section 7.6 of the
24Illinois Gambling Act or any provision of this Act other than
25subsections (e-3) and (e-4.5), for each calendar year for which
26an electronic gaming licensee requests racing dates for a

 

 

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1specific horse breed which results in a number of live races
2for that specific breed under its organization license that is
3less than the total number of live races for that specific
4breed which it conducted in 2011 for standardbred racing and in
52009 for thoroughbred racing at its race track facility, the
6electronic gaming licensee may not conduct electronic gaming
7for the calendar year of such requested live races.
8    (e-4.5) The Board shall ensure that each organization
9licensee shall individually run a sufficient number of races
10per year to qualify for an electronic gaming license under this
11Act. The General Assembly finds that the minimum live racing
12guarantees contained in subsections (e-1), (e-2), and (e-3) are
13in the best interest of the sport of horse racing, and that
14such guarantees may only be reduced in the limited
15circumstances described in this subsection. The Board may
16decrease the number of racing days without affecting an
17organization licensee's ability to conduct electronic gaming
18only if the Board determines, after notice and hearing, that:
19        (i) a decrease is necessary to maintain a sufficient
20    number of betting interests per race to ensure the
21    integrity of racing;
22        (ii) there are unsafe track conditions due to weather
23    or acts of God;
24        (iii) there is an agreement between an organization
25    licensee and the breed association that is applicable to
26    the involved live racing guarantee, such association

 

 

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

 

 

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

 

 

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1    In granting organization licenses and allocating dates for
2horse race meetings, the Board shall have discretion to
3determine an overall schedule, including required simulcasts
4of Illinois races by host tracks that will, in its judgment, be
5conducive to the best interests of the public and the sport of
6horse racing.
7    (e-10) The Illinois Administrative Procedure Act shall
8apply to administrative procedures of the Board under this Act
9for the granting of an organization license, except that (1)
10notwithstanding the provisions of subsection (b) of Section
1110-40 of the Illinois Administrative Procedure Act regarding
12cross-examination, the Board may prescribe rules limiting the
13right of an applicant or participant in any proceeding to award
14an organization license to conduct cross-examination of
15witnesses at that proceeding where that cross-examination
16would unduly obstruct the timely award of an organization
17license under subsection (e) of Section 20 of this Act; (2) the
18provisions of Section 10-45 of the Illinois Administrative
19Procedure Act regarding proposals for decision are excluded
20under this Act; (3) notwithstanding the provisions of
21subsection (a) of Section 10-60 of the Illinois Administrative
22Procedure Act regarding ex parte communications, the Board may
23prescribe rules allowing ex parte communications with
24applicants or participants in a proceeding to award an
25organization license where conducting those communications
26would be in the best interest of racing, provided all those

 

 

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

 

 

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

 

 

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1applicant at the address stated in his application, which
2notice shall be mailed within 5 days of the date the formal
3order is executed.
4    Each applicant notified shall, within 10 days after receipt
5of the final executed order of the Board awarding racing dates:
6        (1) file with the Board an acceptance of such award in
7    the form prescribed by the Board;
8        (2) pay to the Board an additional amount equal to $110
9    for each racing date awarded; and
10        (3) file with the Board the bonds required in Sections
11    21 and 25 at least 20 days prior to the first day of each
12    race meeting.
13Upon compliance with the provisions of paragraphs (1), (2), and
14(3) of this subsection (h), the applicant shall be issued an
15organization license.
16    If any applicant fails to comply with this Section or fails
17to pay the organization license fees herein provided, no
18organization license shall be issued to such applicant.
19(Source: P.A. 97-333, eff. 8-12-11.)
 
20    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
21    Sec. 24. (a) No license shall be issued to or held by an
22organization licensee unless all of its officers, directors,
23and holders of ownership interests of at least 5% are first
24approved by the Board. The Board shall not give approval of an
25organization license application to any person who has been

 

 

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1convicted of or is under an indictment for a crime of moral
2turpitude or has violated any provision of the racing law of
3this State or any rules of the Board.
4    (b) An organization licensee must notify the Board within
510 days of any change in the holders of a direct or indirect
6interest in the ownership of the organization licensee. The
7Board may, after hearing, revoke the organization license of
8any person who registers on its books or knowingly permits a
9direct or indirect interest in the ownership of that person
10without notifying the Board of the name of the holder in
11interest within this period.
12    (c) In addition to the provisions of subsection (a) of this
13Section, no person shall be granted an organization license if
14any public official of the State or member of his or her family
15holds any ownership or financial interest, directly or
16indirectly, in the person.
17    (d) No person which has been granted an organization
18license to hold a race meeting shall give to any public
19official or member of his family, directly or indirectly, for
20or without consideration, any interest in the person. The Board
21shall, after hearing, revoke the organization license granted
22to a person which has violated this subsection.
23    (e) (Blank).
24    (f) No organization licensee or concessionaire or officer,
25director or holder or controller of 5% or more legal or
26beneficial interest in any organization licensee or concession

 

 

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1shall make any sort of gift or contribution that is prohibited
2under Article 10 of the State Officials and Employees Ethics
3Act of any kind or pay or give any money or other thing of value
4to any person who is a public official, or a candidate or
5nominee for public office if that payment or gift is prohibited
6under Article 10 of the State Officials and Employees Ethics
7Act.
8(Source: P.A. 89-16, eff. 5-30-95.)
 
9    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
10    Sec. 26. Wagering.
11    (a) Any licensee may conduct and supervise the pari-mutuel
12system of wagering, as defined in Section 3.12 of this Act, on
13horse races conducted by an Illinois organization licensee or
14conducted at a racetrack located in another state or country
15and televised in Illinois in accordance with subsection (g) of
16Section 26 of this Act. Subject to the prior consent of the
17Board, licensees may supplement any pari-mutuel pool in order
18to guarantee a minimum distribution. Such pari-mutuel method of
19wagering shall not, under any circumstances if conducted under
20the provisions of this Act, be held or construed to be
21unlawful, other statutes of this State to the contrary
22notwithstanding. Subject to rules for advance wagering
23promulgated by the Board, any licensee may accept wagers in
24advance of the day of the race wagered upon occurs.
25    (b) Except for those gaming activities for which a license

 

 

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1is obtained and authorized under the Illinois Lottery Act, the
2Charitable Games Act, the Raffles Act, or the Illinois Gambling
3Act, no No other method of betting, pool making, wagering or
4gambling shall be used or permitted by the licensee. Each
5licensee may retain, subject to the payment of all applicable
6taxes and purses, an amount not to exceed 17% of all money
7wagered under subsection (a) of this Section, except as may
8otherwise be permitted under this Act.
9    (b-5) An individual may place a wager under the pari-mutuel
10system from any licensed location authorized under this Act
11provided that wager is electronically recorded in the manner
12described in Section 3.12 of this Act. Any wager made
13electronically by an individual while physically on the
14premises of a licensee shall be deemed to have been made at the
15premises of that licensee.
16    (c) Until January 1, 2000, the sum held by any licensee for
17payment of outstanding pari-mutuel tickets, if unclaimed prior
18to December 31 of the next year, shall be retained by the
19licensee for payment of such tickets until that date. Within 10
20days thereafter, the balance of such sum remaining unclaimed,
21less any uncashed supplements contributed by such licensee for
22the purpose of guaranteeing minimum distributions of any
23pari-mutuel pool, shall be paid to the Illinois Veterans'
24Rehabilitation Fund of the State treasury, except as provided
25in subsection (g) of Section 27 of this Act.
26    (c-5) Beginning January 1, 2000, the sum held by any

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1welfare. An advance deposit wagering licensee may retain all
2moneys as agreed to by contract with an organization licensee.
3Any moneys retained by the organization licensee from advance
4deposit wagering, not including moneys retained by the advance
5deposit wagering licensee, shall be paid 50% to the
6organization licensee's purse account and 50% to the
7organization licensee. If more than one breed races at the same
8race track facility, then the 50% of the moneys to be paid to
9an organization licensee's purse account shall be allocated
10among all organization licensees' purse accounts operating at
11that race track facility proportionately based on the actual
12number of host days that the Board grants to that breed at that
13race track facility in the current calendar year. To the extent
14any fees from advance deposit wagering conducted in Illinois
15for wagers in Illinois or other states have been placed in
16escrow or otherwise withheld from wagers pending a
17determination of the legality of advance deposit wagering, no
18action shall be brought to declare such wagers or the
19disbursement of any fees previously escrowed illegal.
20        (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
21    intertrack wagering licensee other than the host track may
22    supplement the host track simulcast program with
23    additional simulcast races or race programs, provided that
24    between January 1 and the third Friday in February of any
25    year, inclusive, if no live thoroughbred racing is
26    occurring in Illinois during this period, only

 

 

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1    thoroughbred races may be used for supplemental interstate
2    simulcast purposes. The Board shall withhold approval for a
3    supplemental interstate simulcast only if it finds that the
4    simulcast is clearly adverse to the integrity of racing. A
5    supplemental interstate simulcast may be transmitted from
6    an intertrack wagering licensee to its affiliated non-host
7    licensees. The interstate commission fee for a
8    supplemental interstate simulcast shall be paid by the
9    non-host licensee and its affiliated non-host licensees
10    receiving the simulcast.
11        (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
12    intertrack wagering licensee other than the host track may
13    receive supplemental interstate simulcasts only with the
14    consent of the host track, except when the Board finds that
15    the simulcast is clearly adverse to the integrity of
16    racing. Consent granted under this paragraph (2) to any
17    intertrack wagering licensee shall be deemed consent to all
18    non-host licensees. The interstate commission fee for the
19    supplemental interstate simulcast shall be paid by all
20    participating non-host licensees.
21        (3) Each licensee conducting interstate simulcast
22    wagering may retain, subject to the payment of all
23    applicable taxes and the purses, an amount not to exceed
24    17% of all money wagered. If any licensee conducts the
25    pari-mutuel system wagering on races conducted at
26    racetracks in another state or country, each such race or

 

 

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1    race program shall be considered a separate racing day for
2    the purpose of determining the daily handle and computing
3    the privilege tax of that daily handle as provided in
4    subsection (a) of Section 27. Until January 1, 2000, from
5    the sums permitted to be retained pursuant to this
6    subsection, each intertrack wagering location licensee
7    shall pay 1% of the pari-mutuel handle wagered on simulcast
8    wagering to the Horse Racing Tax Allocation Fund, subject
9    to the provisions of subparagraph (B) of paragraph (11) of
10    subsection (h) of Section 26 of this Act.
11        (4) A licensee who receives an interstate simulcast may
12    combine its gross or net pools with pools at the sending
13    racetracks pursuant to rules established by the Board. All
14    licensees combining their gross pools at a sending
15    racetrack shall adopt the take-out percentages of the
16    sending racetrack. A licensee may also establish a separate
17    pool and takeout structure for wagering purposes on races
18    conducted at race tracks outside of the State of Illinois.
19    The licensee may permit pari-mutuel wagers placed in other
20    states or countries to be combined with its gross or net
21    wagering pools or other wagering pools.
22        (5) After the payment of the interstate commission fee
23    (except for the interstate commission fee on a supplemental
24    interstate simulcast, which shall be paid by the host track
25    and by each non-host licensee through the host-track) and
26    all applicable State and local taxes, except as provided in

 

 

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1    subsection (g) of Section 27 of this Act, the remainder of
2    moneys retained from simulcast wagering pursuant to this
3    subsection (g), and Section 26.2 shall be divided as
4    follows:
5            (A) For interstate simulcast wagers made at a host
6        track, 50% to the host track and 50% to purses at the
7        host track.
8            (B) For wagers placed on interstate simulcast
9        races, supplemental simulcasts as defined in
10        subparagraphs (1) and (2), and separately pooled races
11        conducted outside of the State of Illinois made at a
12        non-host licensee, 25% to the host track, 25% to the
13        non-host licensee, and 50% to the purses at the host
14        track.
15        (6) Notwithstanding any provision in this Act to the
16    contrary, non-host licensees who derive their licenses
17    from a track located in a county with a population in
18    excess of 230,000 and that borders the Mississippi River
19    may receive supplemental interstate simulcast races at all
20    times subject to Board approval, which shall be withheld
21    only upon a finding that a supplemental interstate
22    simulcast is clearly adverse to the integrity of racing.
23        (7) Notwithstanding any provision of this Act to the
24    contrary, after payment of all applicable State and local
25    taxes and interstate commission fees, non-host licensees
26    who derive their licenses from a track located in a county

 

 

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1    with a population in excess of 230,000 and that borders the
2    Mississippi River shall retain 50% of the retention from
3    interstate simulcast wagers and shall pay 50% to purses at
4    the track from which the non-host licensee derives its
5    license as follows:
6            (A) Between January 1 and the third Friday in
7        February, inclusive, if no live thoroughbred racing is
8        occurring in Illinois during this period, when the
9        interstate simulcast is a standardbred race, the purse
10        share to its standardbred purse account;
11            (B) Between January 1 and the third Friday in
12        February, inclusive, if no live thoroughbred racing is
13        occurring in Illinois during this period, and the
14        interstate simulcast is a thoroughbred race, the purse
15        share to its interstate simulcast purse pool to be
16        distributed under paragraph (10) of this subsection
17        (g);
18            (C) Between January 1 and the third Friday in
19        February, inclusive, if live thoroughbred racing is
20        occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
21        the purse share from wagers made during this time
22        period to its thoroughbred purse account and between
23        6:30 p.m. and 6:30 a.m. the purse share from wagers
24        made during this time period to its standardbred purse
25        accounts;
26            (D) Between the third Saturday in February and

 

 

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1        December 31, when the interstate simulcast occurs
2        between the hours of 6:30 a.m. and 6:30 p.m., the purse
3        share to its thoroughbred purse account;
4            (E) Between the third Saturday in February and
5        December 31, when the interstate simulcast occurs
6        between the hours of 6:30 p.m. and 6:30 a.m., the purse
7        share to its standardbred purse account.
8        (7.1) Notwithstanding any other provision of this Act
9    to the contrary, if no standardbred racing is conducted at
10    a racetrack located in Madison County during any calendar
11    year beginning on or after January 1, 2002, all moneys
12    derived by that racetrack from simulcast wagering and
13    inter-track wagering that (1) are to be used for purses and
14    (2) are generated between the hours of 6:30 p.m. and 6:30
15    a.m. during that calendar year shall be paid as follows:
16            (A) If the licensee that conducts horse racing at
17        that racetrack requests from the Board at least as many
18        racing dates as were conducted in calendar year 2000,
19        80% shall be paid to its thoroughbred purse account;
20        and
21            (B) Twenty percent shall be deposited into the
22        Illinois Colt Stakes Purse Distribution Fund and shall
23        be paid to purses for standardbred races for Illinois
24        conceived and foaled horses conducted at any county
25        fairgrounds. The moneys deposited into the Fund
26        pursuant to this subparagraph (B) shall be deposited

 

 

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

 

 

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

 

 

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1        Purse Distribution Fund.
2        Failure to make the payment to the Illinois Colt Stakes
3    Purse Distribution Fund before January 1, 2002 shall result
4    in the immediate revocation of the licensee's organization
5    license, inter-track wagering license, and inter-track
6    wagering location license.
7        Moneys paid into the Illinois Colt Stakes Purse
8    Distribution Fund pursuant to this paragraph (7.3) shall be
9    paid to purses for standardbred races for Illinois
10    conceived and foaled horses conducted at any county
11    fairgrounds. Moneys paid into the Illinois Colt Stakes
12    Purse Distribution Fund pursuant to this paragraph (7.3)
13    shall be used as determined by the Department of
14    Agriculture, with the advice and assistance of the Illinois
15    Standardbred Breeders Fund Advisory Board, shall be in
16    addition to and not in lieu of any other moneys paid to
17    standardbred purses under this Act, and shall not be
18    commingled with any other moneys paid into that Fund.
19        (7.4) If live standardbred racing is conducted at a
20    racetrack located in Madison County at any time in calendar
21    year 2001 before the payment required under paragraph (7.3)
22    has been made, the organization licensee who is licensed to
23    conduct racing at that racetrack shall pay all moneys
24    derived by that racetrack from simulcast wagering and
25    inter-track wagering during calendar years 2000 and 2001
26    that (1) are to be used for purses and (2) are generated

 

 

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1    between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
2    2001 to the standardbred purse account at that racetrack to
3    be used for standardbred purses.
4        (8) Notwithstanding any provision in this Act to the
5    contrary, an organization licensee from a track located in
6    a county with a population in excess of 230,000 and that
7    borders the Mississippi River and its affiliated non-host
8    licensees shall not be entitled to share in any retention
9    generated on racing, inter-track wagering, or simulcast
10    wagering at any other Illinois wagering facility.
11        (8.1) Notwithstanding any provisions in this Act to the
12    contrary, if 2 organization licensees are conducting
13    standardbred race meetings concurrently between the hours
14    of 6:30 p.m. and 6:30 a.m., after payment of all applicable
15    State and local taxes and interstate commission fees, the
16    remainder of the amount retained from simulcast wagering
17    otherwise attributable to the host track and to host track
18    purses shall be split daily between the 2 organization
19    licensees and the purses at the tracks of the 2
20    organization licensees, respectively, based on each
21    organization licensee's share of the total live handle for
22    that day, provided that this provision shall not apply to
23    any non-host licensee that derives its license from a track
24    located in a county with a population in excess of 230,000
25    and that borders the Mississippi River.
26        (9) (Blank).

 

 

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

 

 

SB1849 Enrolled- 172 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 173 -LRB097 07133 ASK 47234 b

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

 

 

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

 

 

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1    equal to $500. The application shall be on forms prescribed
2    and furnished by the Board. The application shall comply
3    with all other rules, regulations and conditions imposed by
4    the Board in connection therewith.
5        (2) The Board shall examine the applications with
6    respect to their conformity with this Act and the rules and
7    regulations imposed by the Board. If found to be in
8    compliance with the Act and rules and regulations of the
9    Board, the Board may then issue a license to conduct
10    inter-track wagering and simulcast wagering to such
11    applicant. All such applications shall be acted upon by the
12    Board at a meeting to be held on such date as may be fixed
13    by the Board.
14        (3) In granting licenses to conduct inter-track
15    wagering and simulcast wagering, the Board shall give due
16    consideration to the best interests of the public, of horse
17    racing, and of maximizing revenue to the State.
18        (4) Prior to the issuance of a license to conduct
19    inter-track wagering and simulcast wagering, the applicant
20    shall file with the Board a bond payable to the State of
21    Illinois in the sum of $50,000, executed by the applicant
22    and a surety company or companies authorized to do business
23    in this State, and conditioned upon (i) the payment by the
24    licensee of all taxes due under Section 27 or 27.1 and any
25    other monies due and payable under this Act, and (ii)
26    distribution by the licensee, upon presentation of the

 

 

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1    winning ticket or tickets, of all sums payable to the
2    patrons of pari-mutuel pools.
3        (5) Each license to conduct inter-track wagering and
4    simulcast wagering shall specify the person to whom it is
5    issued, the dates on which such wagering is permitted, and
6    the track or location where the wagering is to be
7    conducted.
8        (6) All wagering under such license is subject to this
9    Act and to the rules and regulations from time to time
10    prescribed by the Board, and every such license issued by
11    the Board shall contain a recital to that effect.
12        (7) An inter-track wagering licensee or inter-track
13    wagering location licensee may accept wagers at the track
14    or location where it is licensed, or as otherwise provided
15    under this Act.
16        (8) Inter-track wagering or simulcast wagering shall
17    not be conducted at any track less than 4 5 miles from a
18    track at which a racing meeting is in progress.
19        (8.1) Inter-track wagering location licensees who
20    derive their licenses from a particular organization
21    licensee shall conduct inter-track wagering and simulcast
22    wagering only at locations which are either within 90 miles
23    of that race track where the particular organization
24    licensee is licensed to conduct racing, or within 135 miles
25    of that race track where the particular organization
26    licensee is licensed to conduct racing in the case of race

 

 

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1    tracks in counties of less than 400,000 that were operating
2    on or before June 1, 1986. However, inter-track wagering
3    and simulcast wagering shall not be conducted by those
4    licensees at any location within 5 miles of any race track
5    at which a horse race meeting has been licensed in the
6    current year, unless the person having operating control of
7    such race track has given its written consent to such
8    inter-track wagering location licensees, which consent
9    must be filed with the Board at or prior to the time
10    application is made.
11        (8.2) Inter-track wagering or simulcast wagering shall
12    not be conducted by an inter-track wagering location
13    licensee at any location within 500 feet of an existing
14    church, an or existing elementary or secondary public
15    school, or an existing elementary or secondary private
16    school registered with or recognized by the State Board of
17    Education school, nor within 500 feet of the residences of
18    more than 50 registered voters without receiving written
19    permission from a majority of the registered voters at such
20    residences. Such written permission statements shall be
21    filed with the Board. The distance of 500 feet shall be
22    measured to the nearest part of any building used for
23    worship services, education programs, residential
24    purposes, or conducting inter-track wagering by an
25    inter-track wagering location licensee, and not to
26    property boundaries. However, inter-track wagering or

 

 

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1    simulcast wagering may be conducted at a site within 500
2    feet of a church, school or residences of 50 or more
3    registered voters if such church, school or residences have
4    been erected or established, or such voters have been
5    registered, after the Board issues the original
6    inter-track wagering location license at the site in
7    question. Inter-track wagering location licensees may
8    conduct inter-track wagering and simulcast wagering only
9    in areas that are zoned for commercial or manufacturing
10    purposes or in areas for which a special use has been
11    approved by the local zoning authority. However, no license
12    to conduct inter-track wagering and simulcast wagering
13    shall be granted by the Board with respect to any
14    inter-track wagering location within the jurisdiction of
15    any local zoning authority which has, by ordinance or by
16    resolution, prohibited the establishment of an inter-track
17    wagering location within its jurisdiction. However,
18    inter-track wagering and simulcast wagering may be
19    conducted at a site if such ordinance or resolution is
20    enacted after the Board licenses the original inter-track
21    wagering location licensee for the site in question.
22        (9) (Blank).
23        (10) An inter-track wagering licensee or an
24    inter-track wagering location licensee may retain, subject
25    to the payment of the privilege taxes and the purses, an
26    amount not to exceed 17% of all money wagered. Each program

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    remaining retention with the organization licensee.
2    Notwithstanding the provisions of clauses (ii) and (iv) of
3    this paragraph, in the case of the additional inter-track
4    wagering location licenses authorized under paragraph (1)
5    of this subsection (h) by this amendatory Act of 1991,
6    those licensees shall pay the following amounts as purses:
7    during the first 12 months the licensee is in operation,
8    5.25% of the pari-mutuel handle wagered at the location on
9    races; during the second 12 months, 5.25%; during the third
10    12 months, 5.75%; during the fourth 12 months, 6.25%; and
11    during the fifth 12 months and thereafter, 6.75%. The
12    following amounts shall be retained by the licensee to
13    satisfy all costs and expenses of conducting its wagering:
14    during the first 12 months the licensee is in operation,
15    8.25% of the pari-mutuel handle wagered at the location;
16    during the second 12 months, 8.25%; during the third 12
17    months, 7.75%; during the fourth 12 months, 7.25%; and
18    during the fifth 12 months and thereafter, 6.75%. For
19    additional intertrack wagering location licensees
20    authorized under this amendatory Act of 1995, purses for
21    the first 12 months the licensee is in operation shall be
22    5.75% of the pari-mutuel wagered at the location, purses
23    for the second 12 months the licensee is in operation shall
24    be 6.25%, and purses thereafter shall be 6.75%. For
25    additional intertrack location licensees authorized under
26    this amendatory Act of 1995, the licensee shall be allowed

 

 

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1    to retain to satisfy all costs and expenses: 7.75% of the
2    pari-mutuel handle wagered at the location during its first
3    12 months of operation, 7.25% during its second 12 months
4    of operation, and 6.75% thereafter.
5        (C) There is hereby created the Horse Racing Tax
6    Allocation Fund which shall remain in existence until
7    December 31, 1999. Moneys remaining in the Fund after
8    December 31, 1999 shall be paid into the General Revenue
9    Fund. Until January 1, 2000, all monies paid into the Horse
10    Racing Tax Allocation Fund pursuant to this paragraph (11)
11    by inter-track wagering location licensees located in park
12    districts of 500,000 population or less, or in a
13    municipality that is not included within any park district
14    but is included within a conservation district and is the
15    county seat of a county that (i) is contiguous to the state
16    of Indiana and (ii) has a 1990 population of 88,257
17    according to the United States Bureau of the Census, and
18    operating on May 1, 1994 shall be allocated by
19    appropriation as follows:
20            Two-sevenths to the Department of Agriculture.
21        Fifty percent of this two-sevenths shall be used to
22        promote the Illinois horse racing and breeding
23        industry, and shall be distributed by the Department of
24        Agriculture upon the advice of a 9-member committee
25        appointed by the Governor consisting of the following
26        members: the Director of Agriculture, who shall serve

 

 

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

 

 

SB1849 Enrolled- 187 -LRB097 07133 ASK 47234 b

1        official duties. The remaining 50% of this
2        two-sevenths shall be distributed to county fairs for
3        premiums and rehabilitation as set forth in the
4        Agricultural Fair Act;
5            Four-sevenths to park districts or municipalities
6        that do not have a park district of 500,000 population
7        or less for museum purposes (if an inter-track wagering
8        location licensee is located in such a park district)
9        or to conservation districts for museum purposes (if an
10        inter-track wagering location licensee is located in a
11        municipality that is not included within any park
12        district but is included within a conservation
13        district and is the county seat of a county that (i) is
14        contiguous to the state of Indiana and (ii) has a 1990
15        population of 88,257 according to the United States
16        Bureau of the Census, except that if the conservation
17        district does not maintain a museum, the monies shall
18        be allocated equally between the county and the
19        municipality in which the inter-track wagering
20        location licensee is located for general purposes) or
21        to a municipal recreation board for park purposes (if
22        an inter-track wagering location licensee is located
23        in a municipality that is not included within any park
24        district and park maintenance is the function of the
25        municipal recreation board and the municipality has a
26        1990 population of 9,302 according to the United States

 

 

SB1849 Enrolled- 188 -LRB097 07133 ASK 47234 b

1        Bureau of the Census); provided that the monies are
2        distributed to each park district or conservation
3        district or municipality that does not have a park
4        district in an amount equal to four-sevenths of the
5        amount collected by each inter-track wagering location
6        licensee within the park district or conservation
7        district or municipality for the Fund. Monies that were
8        paid into the Horse Racing Tax Allocation Fund before
9        the effective date of this amendatory Act of 1991 by an
10        inter-track wagering location licensee located in a
11        municipality that is not included within any park
12        district but is included within a conservation
13        district as provided in this paragraph shall, as soon
14        as practicable after the effective date of this
15        amendatory Act of 1991, be allocated and paid to that
16        conservation district as provided in this paragraph.
17        Any park district or municipality not maintaining a
18        museum may deposit the monies in the corporate fund of
19        the park district or municipality where the
20        inter-track wagering location is located, to be used
21        for general purposes; and
22            One-seventh to the Agricultural Premium Fund to be
23        used for distribution to agricultural home economics
24        extension councils in accordance with "An Act in
25        relation to additional support and finances for the
26        Agricultural and Home Economic Extension Councils in

 

 

SB1849 Enrolled- 189 -LRB097 07133 ASK 47234 b

1        the several counties of this State and making an
2        appropriation therefor", approved July 24, 1967.
3        Until January 1, 2000, all other monies paid into the
4    Horse Racing Tax Allocation Fund pursuant to this paragraph
5    (11) shall be allocated by appropriation as follows:
6            Two-sevenths to the Department of Agriculture.
7        Fifty percent of this two-sevenths shall be used to
8        promote the Illinois horse racing and breeding
9        industry, and shall be distributed by the Department of
10        Agriculture upon the advice of a 9-member committee
11        appointed by the Governor consisting of the following
12        members: the Director of Agriculture, who shall serve
13        as chairman; 2 representatives of organization
14        licensees conducting thoroughbred race meetings in
15        this State, recommended by those licensees; 2
16        representatives of organization licensees conducting
17        standardbred race meetings in this State, recommended
18        by those licensees; a representative of the Illinois
19        Thoroughbred Breeders and Owners Foundation,
20        recommended by that Foundation; a representative of
21        the Illinois Standardbred Owners and Breeders
22        Association, recommended by that Association; a
23        representative of the Horsemen's Benevolent and
24        Protective Association or any successor organization
25        thereto established in Illinois comprised of the
26        largest number of owners and trainers, recommended by

 

 

SB1849 Enrolled- 190 -LRB097 07133 ASK 47234 b

1        that Association or that successor organization; and a
2        representative of the Illinois Harness Horsemen's
3        Association, recommended by that Association.
4        Committee members shall serve for terms of 2 years,
5        commencing January 1 of each even-numbered year. If a
6        representative of any of the above-named entities has
7        not been recommended by January 1 of any even-numbered
8        year, the Governor shall appoint a committee member to
9        fill that position. Committee members shall receive no
10        compensation for their services as members but shall be
11        reimbursed for all actual and necessary expenses and
12        disbursements incurred in the performance of their
13        official duties. The remaining 50% of this
14        two-sevenths shall be distributed to county fairs for
15        premiums and rehabilitation as set forth in the
16        Agricultural Fair Act;
17            Four-sevenths to museums and aquariums located in
18        park districts of over 500,000 population; provided
19        that the monies are distributed in accordance with the
20        previous year's distribution of the maintenance tax
21        for such museums and aquariums as provided in Section 2
22        of the Park District Aquarium and Museum Act; and
23            One-seventh to the Agricultural Premium Fund to be
24        used for distribution to agricultural home economics
25        extension councils in accordance with "An Act in
26        relation to additional support and finances for the

 

 

SB1849 Enrolled- 191 -LRB097 07133 ASK 47234 b

1        Agricultural and Home Economic Extension Councils in
2        the several counties of this State and making an
3        appropriation therefor", approved July 24, 1967. This
4        subparagraph (C) shall be inoperative and of no force
5        and effect on and after January 1, 2000.
6            (D) Except as provided in paragraph (11) of this
7        subsection (h), with respect to purse allocation from
8        intertrack wagering, the monies so retained shall be
9        divided as follows:
10                (i) If the inter-track wagering licensee,
11            except an intertrack wagering licensee that
12            derives its license from an organization licensee
13            located in a county with a population in excess of
14            230,000 and bounded by the Mississippi River, is
15            not conducting its own race meeting during the same
16            dates, then the entire purse allocation shall be to
17            purses at the track where the races wagered on are
18            being conducted.
19                (ii) If the inter-track wagering licensee,
20            except an intertrack wagering licensee that
21            derives its license from an organization licensee
22            located in a county with a population in excess of
23            230,000 and bounded by the Mississippi River, is
24            also conducting its own race meeting during the
25            same dates, then the purse allocation shall be as
26            follows: 50% to purses at the track where the races

 

 

SB1849 Enrolled- 192 -LRB097 07133 ASK 47234 b

1            wagered on are being conducted; 50% to purses at
2            the track where the inter-track wagering licensee
3            is accepting such wagers.
4                (iii) If the inter-track wagering is being
5            conducted by an inter-track wagering location
6            licensee, except an intertrack wagering location
7            licensee that derives its license from an
8            organization licensee located in a county with a
9            population in excess of 230,000 and bounded by the
10            Mississippi River, the entire purse allocation for
11            Illinois races shall be to purses at the track
12            where the race meeting being wagered on is being
13            held.
14        (12) The Board shall have all powers necessary and
15    proper to fully supervise and control the conduct of
16    inter-track wagering and simulcast wagering by inter-track
17    wagering licensees and inter-track wagering location
18    licensees, including, but not limited to the following:
19            (A) The Board is vested with power to promulgate
20        reasonable rules and regulations for the purpose of
21        administering the conduct of this wagering and to
22        prescribe reasonable rules, regulations and conditions
23        under which such wagering shall be held and conducted.
24        Such rules and regulations are to provide for the
25        prevention of practices detrimental to the public
26        interest and for the best interests of said wagering

 

 

SB1849 Enrolled- 193 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 194 -LRB097 07133 ASK 47234 b

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

 

 

SB1849 Enrolled- 195 -LRB097 07133 ASK 47234 b

1    daily handle as provided in Sections 27 and 27.1. Such
2    agreements shall be approved by the Board before such
3    wagering may be conducted. In determining whether to grant
4    approval, the Board shall give due consideration to the
5    best interests of the public and of horse racing. The
6    provisions of paragraphs (1), (8), (8.1), and (8.2) of
7    subsection (h) of this Section which are not specified in
8    this paragraph (13) shall not apply to licensed race
9    meetings conducted by the Department of Agriculture at the
10    Illinois State Fair in Sangamon County or the DuQuoin State
11    Fair in Perry County, or to any wagering conducted on those
12    race meetings.
13    (i) Notwithstanding the other provisions of this Act, the
14conduct of wagering at wagering facilities is authorized on all
15days, except as limited by subsection (b) of Section 19 of this
16Act.
17(Source: P.A. 96-762, eff. 8-25-09.)
 
18    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
19    Sec. 27. (a) In addition to the organization license fee
20provided by this Act, until January 1, 2000, a graduated
21privilege tax is hereby imposed for conducting the pari-mutuel
22system of wagering permitted under this Act. Until January 1,
232000, except as provided in subsection (g) of Section 27 of
24this Act, all of the breakage of each racing day held by any
25licensee in the State shall be paid to the State. Until January

 

 

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

 

 

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

 

 

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

 

 

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1    The pari-mutuel tax imposed by this subsection (a-10) shall
2be remitted to the Board within 48 hours after the close of the
3racing day upon which it is assessed or within such other time
4as the Board prescribes.
5    (b) On or before December 31, 1999, in the event that any
6organization licensee conducts 2 separate programs of races on
7any day, each such program shall be considered a separate
8racing day for purposes of determining the daily handle and
9computing the privilege tax on such daily handle as provided in
10subsection (a) of this Section.
11    (c) Licensees shall at all times keep accurate books and
12records of all monies wagered on each day of a race meeting and
13of the taxes paid to the Department of Revenue under the
14provisions of this Section. The Board or its duly authorized
15representative or representatives shall at all reasonable
16times have access to such records for the purpose of examining
17and checking the same and ascertaining whether the proper
18amount of taxes is being paid as provided. The Board shall
19require verified reports and a statement of the total of all
20monies wagered daily at each wagering facility upon which the
21taxes are assessed and may prescribe forms upon which such
22reports and statement shall be made.
23    (d) Any licensee failing or refusing to pay the amount of
24any tax due under this Section shall be guilty of a business
25offense and upon conviction shall be fined not more than $5,000
26in addition to the amount found due as tax under this Section.

 

 

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1Each day's violation shall constitute a separate offense. All
2fines paid into Court by a licensee hereunder shall be
3transmitted and paid over by the Clerk of the Court to the
4Board.
5    (e) No other license fee, privilege tax, excise tax, or
6racing fee, except as provided in this Act, shall be assessed
7or collected from any such licensee by the State.
8    (f) No other license fee, privilege tax, excise tax or
9racing fee shall be assessed or collected from any such
10licensee by units of local government except as provided in
11paragraph 10.1 of subsection (h) and subsection (f) of Section
1226 of this Act. However, any municipality that has a Board
13licensed horse race meeting at a race track wholly within its
14corporate boundaries or a township that has a Board licensed
15horse race meeting at a race track wholly within the
16unincorporated area of the township may charge a local
17amusement tax not to exceed 10 per admission to such horse
18race meeting by the enactment of an ordinance. However, any
19municipality or county that has a Board licensed inter-track
20wagering location facility wholly within its corporate
21boundaries may each impose an admission fee not to exceed $1.00
22per admission to such inter-track wagering location facility,
23so that a total of not more than $2.00 per admission may be
24imposed. Except as provided in subparagraph (g) of Section 27
25of this Act, the inter-track wagering location licensee shall
26collect any and all such fees and within 48 hours remit the

 

 

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

 

 

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1    live thoroughbred or standardbred wagering in calendar
2    year 1994 (the total to be determined based on the sum of
3    1994 on-track wagering for all organization licensees
4    issued organization licenses in both the allocation year
5    and the preceding year) multiplied by the total amount
6    allocated for standardbred or thoroughbred purses,
7    provided that the first $1,500,000 of the amount allocated
8    to standardbred purses under item (i) shall be allocated to
9    the Department of Agriculture to be expended with the
10    assistance and advice of the Illinois Standardbred
11    Breeders Funds Advisory Board for the purposes listed in
12    subsection (g) of Section 31 of this Act, before the amount
13    allocated to standardbred purses under item (i) is
14    allocated to standardbred organization licensees in the
15    succeeding allocation year.
16    To the extent the excess amount of taxes and fees to be
17collected and distributed to State and local governmental
18authorities exceeds $11 million, that excess amount shall be
19collected and distributed to State and local authorities as
20provided for under this Act.
21(Source: P.A. 96-762, eff. 8-25-09; 96-1287, eff. 7-26-10.)
 
22    (230 ILCS 5/28)  (from Ch. 8, par. 37-28)
23    Sec. 28. Except as provided in subsection (g) of Section 27
24of this Act, moneys collected shall be distributed according to
25the provisions of this Section 28.

 

 

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1    (a) Thirty per cent of the total of all monies received by
2the State as privilege taxes shall be paid into the
3Metropolitan Exposition Auditorium and Office Building Fund in
4the State Treasury.
5    (b) In addition, 4.5% of the total of all monies received
6by the State as privilege taxes shall be paid into the State
7treasury into a special Fund to be known as the Metropolitan
8Exposition, Auditorium, and Office Building Fund.
9    (c) Fifty per cent of the total of all monies received by
10the State as privilege taxes under the provisions of this Act
11shall be paid into the Agricultural Premium Fund.
12    (d) Seven per cent of the total of all monies received by
13the State as privilege taxes shall be paid into the Fair and
14Exposition Fund in the State treasury; provided, however, that
15when all bonds issued prior to July 1, 1984 by the Metropolitan
16Fair and Exposition Authority shall have been paid or payment
17shall have been provided for upon a refunding of those bonds,
18thereafter 1/12 of $1,665,662 of such monies shall be paid each
19month into the Build Illinois Fund, and the remainder into the
20Fair and Exposition Fund. All excess monies shall be allocated
21to the Department of Agriculture for distribution to county
22fairs for premiums and rehabilitation as set forth in the
23Agricultural Fair Act.
24    (e) The monies provided for in Section 30 shall be paid
25into the Illinois Thoroughbred Breeders Fund.
26    (f) The monies provided for in Section 31 shall be paid

 

 

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1into the Illinois Standardbred Breeders Fund.
2    (g) Until January 1, 2000, that part representing 1/2 of
3the total breakage in Thoroughbred, Harness, Appaloosa,
4Arabian, and Quarter Horse racing in the State shall be paid
5into the Illinois Race Track Improvement Fund as established in
6Section 32.
7    (h) All other monies received by the Board under this Act
8shall be paid into the Horse Racing Fund General Revenue Fund
9of the State.
10    (i) The salaries of the Board members, secretary, stewards,
11directors of mutuels, veterinarians, representatives,
12accountants, clerks, stenographers, inspectors and other
13employees of the Board, and all expenses of the Board incident
14to the administration of this Act, including, but not limited
15to, all expenses and salaries incident to the taking of saliva
16and urine samples in accordance with the rules and regulations
17of the Board shall be paid out of the Agricultural Premium
18Fund.
19    (j) The Agricultural Premium Fund shall also be used:
20        (1) for the expenses of operating the Illinois State
21    Fair and the DuQuoin State Fair, including the payment of
22    prize money or premiums;
23        (2) for the distribution to county fairs, vocational
24    agriculture section fairs, agricultural societies, and
25    agricultural extension clubs in accordance with the
26    Agricultural Fair Act, as amended;

 

 

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1        (3) for payment of prize monies and premiums awarded
2    and for expenses incurred in connection with the
3    International Livestock Exposition and the Mid-Continent
4    Livestock Exposition held in Illinois, which premiums, and
5    awards must be approved, and paid by the Illinois
6    Department of Agriculture;
7        (4) for personal service of county agricultural
8    advisors and county home advisors;
9        (5) for distribution to agricultural home economic
10    extension councils in accordance with "An Act in relation
11    to additional support and finance for the Agricultural and
12    Home Economic Extension Councils in the several counties in
13    this State and making an appropriation therefor", approved
14    July 24, 1967, as amended;
15        (6) for research on equine disease, including a
16    development center therefor;
17        (7) for training scholarships for study on equine
18    diseases to students at the University of Illinois College
19    of Veterinary Medicine;
20        (8) for the rehabilitation, repair and maintenance of
21    the Illinois and DuQuoin State Fair Grounds and the
22    structures and facilities thereon and the construction of
23    permanent improvements on such Fair Grounds, including
24    such structures, facilities and property located on such
25    State Fair Grounds which are under the custody and control
26    of the Department of Agriculture;

 

 

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1        (9) for the expenses of the Department of Agriculture
2    under Section 5-530 of the Departments of State Government
3    Law (20 ILCS 5/5-530);
4        (10) for the expenses of the Department of Commerce and
5    Economic Opportunity under Sections 605-620, 605-625, and
6    605-630 of the Department of Commerce and Economic
7    Opportunity Law (20 ILCS 605/605-620, 605/605-625, and
8    605/605-630);
9        (11) for remodeling, expanding, and reconstructing
10    facilities destroyed by fire of any Fair and Exposition
11    Authority in counties with a population of 1,000,000 or
12    more inhabitants;
13        (12) for the purpose of assisting in the care and
14    general rehabilitation of disabled veterans of any war and
15    their surviving spouses and orphans;
16        (13) for expenses of the Department of State Police for
17    duties performed under this Act;
18        (14) for the Department of Agriculture for soil surveys
19    and soil and water conservation purposes;
20        (15) for the Department of Agriculture for grants to
21    the City of Chicago for conducting the Chicagofest;
22        (16) for the State Comptroller for grants and operating
23    expenses authorized by the Illinois Global Partnership
24    Act.
25    (k) To the extent that monies paid by the Board to the
26Agricultural Premium Fund are in the opinion of the Governor in

 

 

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1excess of the amount necessary for the purposes herein stated,
2the Governor shall notify the Comptroller and the State
3Treasurer of such fact, who, upon receipt of such notification,
4shall transfer such excess monies from the Agricultural Premium
5Fund to the General Revenue Fund.
6(Source: P.A. 94-91, Sections 55-135 and 90-10, eff. 7-1-05.)
 
7    (230 ILCS 5/28.1)
8    Sec. 28.1. Payments.
9    (a) Beginning on January 1, 2000, moneys collected by the
10Department of Revenue and the Racing Board pursuant to Section
1126 or Section 27 of this Act shall be deposited into the Horse
12Racing Fund, which is hereby created as a special fund in the
13State Treasury.
14    (b) Appropriations, as approved by the General Assembly,
15may be made from the Horse Racing Fund to the Board to pay the
16salaries of the Board members, secretary, stewards, directors
17of mutuels, veterinarians, representatives, accountants,
18clerks, stenographers, inspectors and other employees of the
19Board, and all expenses of the Board incident to the
20administration of this Act, including, but not limited to, all
21expenses and salaries incident to the taking of saliva and
22urine samples in accordance with the rules and regulations of
23the Board.
24    (c) Beginning on January 1, 2000, the Board shall transfer
25the remainder of the funds generated pursuant to Sections 26

 

 

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1and 27 from the Horse Racing Fund into the General Revenue
2Fund.
3    In the event that in any fiscal year, the amount of total
4funds in the Horse Racing Fund is insufficient to meet the
5annual operating expenses of the Board, as appropriated by the
6General Assembly for that fiscal year, the Board shall invoice
7the organization licensees for the amount of the deficit. The
8amount of the invoice shall be allocated in a proportionate
9amount of pari-mutuel wagering handled by the organization
10licensee in the year preceding assessment and divided by the
11total pari-mutuel wagering handled by all Illinois
12organization licensees. The payments shall be made 50% from the
13organization licensee's account and 50% from the organization
14licensee's purse account.
15    (d) Beginning January 1, 2000, payments to all programs in
16existence on the effective date of this amendatory Act of 1999
17that are identified in Sections 26(c), 26(f), 26(h)(11)(C), and
1828, subsections (a), (b), (c), (d), (e), (f), (g), and (h) of
19Section 30, and subsections (a), (b), (c), (d), (e), (f), (g),
20and (h) of Section 31 shall be made from the General Revenue
21Fund at the funding levels determined by amounts paid under
22this Act in calendar year 1998. Beginning on the effective date
23of this amendatory Act of the 93rd General Assembly, payments
24to the Peoria Park District shall be made from the General
25Revenue Fund at the funding level determined by amounts paid to
26that park district for museum purposes under this Act in

 

 

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1calendar year 1994.
2    If an inter-track wagering location licensee's facility
3changes its location, then the payments associated with that
4facility under this subsection (d) for museum purposes shall be
5paid to the park district in the area where the facility
6relocates, and the payments shall be used for museum purposes.
7If the facility does not relocate to a park district, then the
8payments shall be paid to the taxing district that is
9responsible for park or museum expenditures.
10    (e) Beginning July 1, 2006, the payment authorized under
11subsection (d) to museums and aquariums located in park
12districts of over 500,000 population shall be paid to museums,
13aquariums, and zoos in amounts determined by Museums in the
14Park, an association of museums, aquariums, and zoos located on
15Chicago Park District property.
16    (f) Beginning July 1, 2007, the Children's Discovery Museum
17in Normal, Illinois shall receive payments from the General
18Revenue Fund at the funding level determined by the amounts
19paid to the Miller Park Zoo in Bloomington, Illinois under this
20Section in calendar year 2006.
21(Source: P.A. 95-222, eff. 8-16-07; 96-562, eff. 8-18-09.)
 
22    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
23    Sec. 30. (a) The General Assembly declares that it is the
24policy of this State to encourage the breeding of thoroughbred
25horses in this State and the ownership of such horses by

 

 

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1residents of this State in order to provide for: sufficient
2numbers of high quality thoroughbred horses to participate in
3thoroughbred racing meetings in this State, and to establish
4and preserve the agricultural and commercial benefits of such
5breeding and racing industries to the State of Illinois. It is
6the intent of the General Assembly to further this policy by
7the provisions of this Act.
8    (b) Each organization licensee conducting a thoroughbred
9racing meeting pursuant to this Act shall provide at least two
10races each day limited to Illinois conceived and foaled horses
11or Illinois foaled horses or both. A minimum of 6 races shall
12be conducted each week limited to Illinois conceived and foaled
13or Illinois foaled horses or both. No horses shall be permitted
14to start in such races unless duly registered under the rules
15of the Department of Agriculture.
16    (c) Conditions of races under subsection (b) shall be
17commensurate with past performance, quality, and class of
18Illinois conceived and foaled and Illinois foaled horses
19available. If, however, sufficient competition cannot be had
20among horses of that class on any day, the races may, with
21consent of the Board, be eliminated for that day and substitute
22races provided.
23    (d) There is hereby created a special fund of the State
24Treasury to be known as the Illinois Thoroughbred Breeders
25Fund.
26    Beginning on the effective date of this amendatory Act of

 

 

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1the 97th General Assembly, the Illinois Thoroughbred Breeders
2Fund shall become a non-appropriated trust fund held separately
3from State moneys. Expenditures from this Fund shall no longer
4be subject to appropriation.
5    Except as provided in subsection (g) of Section 27 of this
6Act, 8.5% of all the monies received by the State as privilege
7taxes on Thoroughbred racing meetings shall be paid into the
8Illinois Thoroughbred Breeders Fund.
9    Notwithstanding any provision of law to the contrary,
10amounts deposited into the Illinois Thoroughbred Breeders Fund
11from revenues generated by electronic gaming after the
12effective date of this amendatory Act of the 97th General
13Assembly shall be in addition to tax and fee amounts paid under
14this Section for calendar year 2011 and thereafter.
15    (e) The Illinois Thoroughbred Breeders Fund shall be
16administered by the Department of Agriculture with the advice
17and assistance of the Advisory Board created in subsection (f)
18of this Section.
19    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
20shall consist of the Director of the Department of Agriculture,
21who shall serve as Chairman; a member of the Illinois Racing
22Board, designated by it; 2 representatives of the organization
23licensees conducting thoroughbred racing meetings, recommended
24by them; 2 representatives of the Illinois Thoroughbred
25Breeders and Owners Foundation, recommended by it; one
26representative and 2 representatives of the Horsemen's

 

 

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1Benevolent Protective Association; and one representative from
2the Illinois Thoroughbred Horsemen's Association or any
3successor organization established in Illinois comprised of
4the largest number of owners and trainers, recommended by it,
5with one representative of the Horsemen's Benevolent and
6Protective Association to come from its Illinois Division, and
7one from its Chicago Division. Advisory Board members shall
8serve for 2 years commencing January 1 of each odd numbered
9year. If representatives of the organization licensees
10conducting thoroughbred racing meetings, the Illinois
11Thoroughbred Breeders and Owners Foundation, and the
12Horsemen's Benevolent Protection Association, and the Illinois
13Thoroughbred Horsemen's Association have not been recommended
14by January 1, of each odd numbered year, the Director of the
15Department of Agriculture shall make an appointment for the
16organization failing to so recommend a member of the Advisory
17Board. Advisory Board members shall receive no compensation for
18their services as members but shall be reimbursed for all
19actual and necessary expenses and disbursements incurred in the
20execution of their official duties.
21    (g) No monies shall be expended from the Illinois
22Thoroughbred Breeders Fund except as appropriated by the
23General Assembly. Monies expended appropriated from the
24Illinois Thoroughbred Breeders Fund shall be expended by the
25Department of Agriculture, with the advice and assistance of
26the Illinois Thoroughbred Breeders Fund Advisory Board, for the
</

 

 

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1following purposes only: