Rep. Robert Rita

Filed: 3/19/2014

 

 


 

 


 
09800SB1739ham004LRB098 10559 AMC 56940 a

1
AMENDMENT TO SENATE BILL 1739

2    AMENDMENT NO. ______. Amend Senate Bill 1739, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 1. Findings. The General Assembly makes all of the
6following findings:
7        (1) That the cumulative reduction to pre-K through 12
8    education funding since 2009 is approximately
9    $861,000,000.
10        (2) That during the last 2 years, general State aid to
11    Illinois common schools has been underfunded as a result of
12    budget cuts, resulting in pro-rated payments to school
13    districts that are less than the foundational level of
14    $6,119 per pupil, which represents the minimum each pupil
15    needs to be educated.
16        (3) That a significant infusion of new revenue is
17    necessary in order to fully fund the foundation level and

 

 

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1    to maintain and support education in Illinois.
2        (4) That the decline of the Illinois horse racing and
3    breeding program, a $2.5 billion industry, would be
4    reversed if this amendatory Act of the 98th General
5    Assembly would be enacted.
6        (5) That the Illinois horse racing industry is on the
7    verge of extinction due to fierce competition from fully
8    developed horse racing and gaming operations in other
9    states.
10        (6) That allowing the State's horse racing venues,
11    currently licensed gaming destinations, to maximize their
12    capacities with gaming machines, would generate up to $120
13    million to $200 million for the State in the form of extra
14    licensing fees, plus an additional $100 million to $300
15    million in recurring annual tax revenue for the State to
16    help ensure that school, road, and other building projects
17    promised under the capital plan occur on schedule.
18        (7) That Illinois agriculture and other businesses
19    that support and supply the horse racing industry, already
20    a sector that employs over 37,000 Illinoisans, also stand
21    to substantially benefit and would be much more likely to
22    create additional jobs should Illinois horse racing once
23    again become competitive with other states.
24        (8) That by keeping these projects on track, the State
25    can be sure that significant job and economic growth will
26    in fact result from previously enacted legislation.

 

 

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1        (9) That gaming machines at Illinois horse racing
2    tracks would create an estimated 1,200 to 1,500 permanent
3    jobs, and an estimated capital investment of up to $200
4    million to $400 million at these race tracks would prompt
5    additional trade organization jobs necessary to construct
6    new facilities or remodel race tracks to operate electronic
7    gaming.
 
8    Section 5. The State Officials and Employees Ethics Act is
9amended by changing Sections 5-45 and 20-10 as follows:
 
10    (5 ILCS 430/5-45)
11    Sec. 5-45. Procurement; revolving door prohibition.
12    (a) No former officer, member, or State employee, or spouse
13or immediate family member living with such person, shall,
14within a period of one year immediately after termination of
15State employment, knowingly accept employment or receive
16compensation or fees for services from a person or entity if
17the officer, member, or State employee, during the year
18immediately preceding termination of State employment,
19participated personally and substantially in the award of State
20contracts, or the issuance of State contract change orders,
21with a cumulative value of $25,000 or more to the person or
22entity, or its parent or subsidiary.
23    (b) No former officer of the executive branch or State
24employee of the executive branch with regulatory or licensing

 

 

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

 

 

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

 

 

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1notification from an employee in a position subject to the
2policies required by subsection (c), such Inspector General
3shall make a determination as to whether the State employee is
4restricted from accepting such employment by subsection (a) or
5(b). In making a determination, in addition to any other
6relevant information, an Inspector General shall assess the
7effect of the prospective employment or relationship upon
8decisions referred to in subsections (a) and (b), based on the
9totality of the participation by the former officer, member, or
10State employee in those decisions. A determination by an
11Inspector General must be in writing, signed and dated by the
12Inspector General, and delivered to the subject of the
13determination within 10 calendar days or the person is deemed
14eligible for the employment opportunity. For purposes of this
15subsection, "appropriate Inspector General" means (i) for
16members and employees of the legislative branch, the
17Legislative Inspector General; (ii) for the Auditor General and
18employees of the Office of the Auditor General, the Inspector
19General provided for in Section 30-5 of this Act; and (iii) for
20executive branch officers and employees, the Inspector General
21having jurisdiction over the officer or employee. Notice of any
22determination of an Inspector General and of any such appeal
23shall be given to the ultimate jurisdictional authority, the
24Attorney General, and the Executive Ethics Commission.
25    (g) An Inspector General's determination regarding
26restrictions under subsection (a) or (b) may be appealed to the

 

 

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1appropriate Ethics Commission by the person subject to the
2decision or the Attorney General no later than the 10th
3calendar day after the date of the determination.
4    On appeal, the Ethics Commission or Auditor General shall
5seek, accept, and consider written public comments regarding a
6determination. In deciding whether to uphold an Inspector
7General's determination, the appropriate Ethics Commission or
8Auditor General shall assess, in addition to any other relevant
9information, the effect of the prospective employment or
10relationship upon the decisions referred to in subsections (a)
11and (b), based on the totality of the participation by the
12former officer, member, or State employee in those decisions.
13The Ethics Commission shall decide whether to uphold an
14Inspector General's determination within 10 calendar days or
15the person is deemed eligible for the employment opportunity.
16    (h) The following officers, members, or State employees
17shall not, within a period of one year immediately after
18termination of office or State employment, knowingly accept
19employment or receive compensation or fees for services from a
20person or entity if the person or entity or its parent or
21subsidiary, during the year immediately preceding termination
22of State employment, was a party to a State contract or
23contracts with a cumulative value of $25,000 or more involving
24the officer, member, or State employee's State agency, or was
25the subject of a regulatory or licensing decision involving the
26officer, member, or State employee's State agency, regardless

 

 

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1of whether he or she participated personally and substantially
2in the award of the State contract or contracts or the making
3of the regulatory or licensing decision in question:
4        (1) members or officers;
5        (2) members of a commission or board created by the
6    Illinois Constitution;
7        (3) persons whose appointment to office is subject to
8    the advice and consent of the Senate;
9        (4) the head of a department, commission, board,
10    division, bureau, authority, or other administrative unit
11    within the government of this State;
12        (5) chief procurement officers, State purchasing
13    officers, and their designees whose duties are directly
14    related to State procurement; and
15        (6) chiefs of staff, deputy chiefs of staff, associate
16    chiefs of staff, assistant chiefs of staff, and deputy
17    governors; .
18        (7) employees of the Illinois Racing Board; and
19        (8) employees of the Illinois Gaming Board.
20    (i) For the purposes of this Section, with respect to
21officers or employees of a regional transit board, as defined
22in this Act, the phrase "person or entity" does not include:
23(i) the United States government, (ii) the State, (iii)
24municipalities, as defined under Article VII, Section 1 of the
25Illinois Constitution, (iv) units of local government, as
26defined under Article VII, Section 1 of the Illinois

 

 

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1Constitution, or (v) school districts.
2(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
 
3    (5 ILCS 430/20-10)
4    Sec. 20-10. Offices of Executive Inspectors General.
5    (a) Six Five independent Offices of the Executive Inspector
6General are created, one each for the Governor, the Attorney
7General, the Secretary of State, the Comptroller, and the
8Treasurer and one for gaming activities. Each Office shall be
9under the direction and supervision of an Executive Inspector
10General and shall be a fully independent office with separate
11appropriations.
12    (b) The Governor, Attorney General, Secretary of State,
13Comptroller, and Treasurer shall each appoint an Executive
14Inspector General, and the Governor shall appoint an Executive
15Inspector General for gaming activities. Each appointment must
16be made without regard to political affiliation and solely on
17the basis of integrity and demonstrated ability. Appointments
18shall be made by and with the advice and consent of the Senate
19by three-fifths of the elected members concurring by record
20vote. Any nomination not acted upon by the Senate within 60
21session days of the receipt thereof shall be deemed to have
22received the advice and consent of the Senate. If, during a
23recess of the Senate, there is a vacancy in an office of
24Executive Inspector General, the appointing authority shall
25make a temporary appointment until the next meeting of the

 

 

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

 

 

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1    capacity; (B) as a federal, State, or local prosecutor; (C)
2    as a senior manager or executive of a federal, State, or
3    local agency; (D) as a member, an officer, or a State or
4    federal judge; or (E) representing any combination of (A)
5    through (D).
6    The term of each initial Executive Inspector General shall
7commence upon qualification and shall run through June 30,
82008. The initial appointments shall be made within 60 days
9after the effective date of this Act.
10    After the initial term, each Executive Inspector General
11shall serve for 5-year terms commencing on July 1 of the year
12of appointment and running through June 30 of the fifth
13following year. An Executive Inspector General may be
14reappointed to one or more subsequent terms.
15    A vacancy occurring other than at the end of a term shall
16be filled by the appointing authority only for the balance of
17the term of the Executive Inspector General whose office is
18vacant.
19    Terms shall run regardless of whether the position is
20filled.
21    (c) The Executive Inspector General appointed by the
22Attorney General shall have jurisdiction over the Attorney
23General and all officers and employees of, and vendors and
24others doing business with, State agencies within the
25jurisdiction of the Attorney General. The Executive Inspector
26General appointed by the Secretary of State shall have

 

 

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

 

 

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

 

 

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1    participate in any campaign for any elective office.
2    In this subsection an appointed public office means a
3position authorized by law that is filled by an appointing
4authority as provided by law and does not include employment by
5hiring in the ordinary course of business.
6    (e-1) No Executive Inspector General or employee of the
7Office of the Executive Inspector General may, for one year
8after the termination of his or her appointment or employment:
9        (1) become a candidate for any elective office;
10        (2) hold any elected public office; or
11        (3) hold any appointed State, county, or local judicial
12    office.
13    (e-2) The requirements of item (3) of subsection (e-1) may
14be waived by the Executive Ethics Commission.
15    (f) An Executive Inspector General may be removed only for
16cause and may be removed only by the appointing constitutional
17officer. At the time of the removal, the appointing
18constitutional officer must report to the Executive Ethics
19Commission the justification for the removal.
20(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
 
21    Section 10. The Alcoholism and Other Drug Abuse and
22Dependency Act is amended by changing Section 5-20 as follows:
 
23    (20 ILCS 301/5-20)
24    Sec. 5-20. Compulsive gambling program.

 

 

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1    (a) Subject to appropriation, the Department shall
2establish a program for public education, research, and
3training regarding problem and compulsive gambling and the
4treatment and prevention of problem and compulsive gambling.
5Subject to specific appropriation for these stated purposes,
6the program must include all of the following:
7        (1) Establishment and maintenance of a toll-free "800"
8    telephone number to provide crisis counseling and referral
9    services to families experiencing difficulty as a result of
10    problem or compulsive gambling.
11        (2) Promotion of public awareness regarding the
12    recognition and prevention of problem and compulsive
13    gambling.
14        (3) Facilitation, through in-service training and
15    other means, of the availability of effective assistance
16    programs for problem and compulsive gamblers.
17        (4) Conducting studies to identify adults and
18    juveniles in this State who are, or who are at risk of
19    becoming, problem or compulsive gamblers.
20    (b) Subject to appropriation, the Department shall either
21establish and maintain the program or contract with a private
22or public entity for the establishment and maintenance of the
23program. Subject to appropriation, either the Department or the
24private or public entity shall implement the toll-free
25telephone number, promote public awareness, and conduct
26in-service training concerning problem and compulsive

 

 

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1gambling.
2    (c) Subject to appropriation, the Department shall produce
3and supply the signs specified in Section 10.7 of the Illinois
4Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
51975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
6of the Charitable Games Act, and Section 13.1 of the Illinois
7Riverboat Gambling Act.
8(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
9    Section 15. The Illinois Lottery Law is amended by changing
10Section 9.1 as follows:
 
11    (20 ILCS 1605/9.1)
12    Sec. 9.1. Private manager and management agreement.
13    (a) As used in this Section:
14    "Offeror" means a person or group of persons that responds
15to a request for qualifications under this Section.
16    "Request for qualifications" means all materials and
17documents prepared by the Department to solicit the following
18from offerors:
19        (1) Statements of qualifications.
20        (2) Proposals to enter into a management agreement,
21    including the identity of any prospective vendor or vendors
22    that the offeror intends to initially engage to assist the
23    offeror in performing its obligations under the management
24    agreement.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09800SB1739ham004- 22 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 23 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 24 -LRB098 10559 AMC 56940 a

1    Department, following the termination of or foreclosure
2    upon the management agreement.
3        (21) Right of use of copyrights, trademarks, and
4    service marks held by the Department in the name of the
5    State. The agreement must provide that any use of them by
6    the manager shall only be for the purpose of fulfilling its
7    obligations under the management agreement during the term
8    of the agreement.
9        (22) The disclosure of any information requested by the
10    Department to enable it to comply with the reporting
11    requirements and information requests provided for under
12    subsection (p) of this Section.
13    (e) Notwithstanding any other law to the contrary, the
14Department shall select a private manager through a competitive
15request for qualifications process consistent with Section
1620-35 of the Illinois Procurement Code, which shall take into
17account:
18        (1) the offeror's ability to market the Lottery to
19    those residents who are new, infrequent, or lapsed players
20    of the Lottery, especially those who are most likely to
21    make regular purchases on the Internet;
22        (2) the offeror's ability to address the State's
23    concern with the social effects of gambling on those who
24    can least afford to do so;
25        (3) the offeror's ability to provide the most
26    successful management of the Lottery for the benefit of the

 

 

09800SB1739ham004- 25 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 26 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 27 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 28 -LRB098 10559 AMC 56940 a

1the Governor under this Section must be brought within 7
2calendar days after the publication of the notice of the
3designation of the private manager as provided in subsection
4(h) of this Section.
5    (j) The Lottery shall remain, for so long as a private
6manager manages the Lottery in accordance with provisions of
7this Act, a Lottery conducted by the State, and the State shall
8not be authorized to sell or transfer the Lottery to a third
9party.
10    (k) Any tangible personal property used exclusively in
11connection with the lottery that is owned by the Department and
12leased to the private manager shall be owned by the Department
13in the name of the State and shall be considered to be public
14property devoted to an essential public and governmental
15function.
16    (l) The Department may exercise any of its powers under
17this Section or any other law as necessary or desirable for the
18execution of the Department's powers under this Section.
19    (m) Neither this Section nor any management agreement
20entered into under this Section prohibits the General Assembly
21from authorizing forms of gambling that are not in direct
22competition with the Lottery. The forms of gambling authorized
23by this amendatory Act of the 98th General Assembly constitute
24authorized forms of gambling that are not in direct competition
25with the Lottery.
26    (n) The private manager shall be subject to a complete

 

 

09800SB1739ham004- 29 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 30 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 31 -LRB098 10559 AMC 56940 a

1Procurement Officer shall also implement and administer the
2adopted selection process upon the termination of a private
3management agreement. The Department, after the Chief
4Procurement Officer certifies that the procurement process has
5been followed in accordance with the rules adopted under this
6subsection (o), shall select a final offeror as the private
7manager and sign the management agreement with the private
8manager.
9    Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and
1021.8, the Department shall distribute all proceeds of lottery
11tickets and shares sold in the following priority and manner:
12        (1) The payment of prizes and retailer bonuses.
13        (2) The payment of costs incurred in the operation and
14    administration of the Lottery, including the payment of
15    sums due to the private manager under the management
16    agreement with the Department.
17        (3) On the last day of each month or as soon thereafter
18    as possible, the State Comptroller shall direct and the
19    State Treasurer shall transfer from the State Lottery Fund
20    to the Common School Fund an amount that is equal to the
21    proceeds transferred in the corresponding month of fiscal
22    year 2009, as adjusted for inflation, to the Common School
23    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

 

 

09800SB1739ham004- 32 -LRB098 10559 AMC 56940 a

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. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13.)
 
23    Section 20. The Department of Revenue Law of the Civil
24Administrative Code of Illinois is amended by changing Section
252505-305 as follows:
 

 

 

09800SB1739ham004- 33 -LRB098 10559 AMC 56940 a

1    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
2    Sec. 2505-305. Investigators.
3    (a) The Department has the power to appoint investigators
4to conduct all investigations, searches, seizures, arrests,
5and other duties imposed under the provisions of any law
6administered by the Department. Except as provided in
7subsection (c), these investigators have and may exercise all
8the powers of peace officers solely for the purpose of
9enforcing taxing measures administered by the Department.
10    (b) The Director must authorize to each investigator
11employed under this Section and to any other employee of the
12Department exercising the powers of a peace officer a distinct
13badge that, on its face, (i) clearly states that the badge is
14authorized by the Department and (ii) contains a unique
15identifying number. No other badge shall be authorized by the
16Department.
17    (c) The Department may enter into agreements with the
18Illinois Gaming Board providing that investigators appointed
19under this Section shall exercise the peace officer powers set
20forth in paragraph (20.6) of subsection (c) of Section 5 of the
21Illinois Riverboat Gambling Act.
22(Source: P.A. 96-37, eff. 7-13-09.)
 
23    Section 25. The State Finance Act is amended by adding
24Sections 5.855 and 6z-100 and by changing Sections 5d and 6z-45

 

 

09800SB1739ham004- 34 -LRB098 10559 AMC 56940 a

1as follows:
 
2    (30 ILCS 105/5.855 new)
3    Sec. 5.855. The Gaming Facilities Fee Revenue Fund.
 
4    (30 ILCS 105/5d)  (from Ch. 127, par. 141d)
5    Sec. 5d. State Construction Account Fund.
6    (a) Except as provided in subsection (b) of this Section or
7by Section 5e of this Act, the State Construction Account Fund
8shall be used exclusively for the construction, reconstruction
9and maintenance of the State maintained highway system. Except
10as provided by Section 5e of this Act, none of the money
11deposited in the State Construction Account Fund shall be used
12to pay the cost of administering the Motor Fuel Tax Law as now
13or hereafter amended, nor be appropriated for use by the
14Department of Transportation to pay the cost of its operations
15or administration, nor be used in any manner for the payment of
16regular or contractual employees of the State, nor be
17transferred or allocated by the Comptroller and Treasurer or be
18otherwise used, except for the sole purpose of construction,
19reconstruction and maintenance of the State maintained highway
20system as the Illinois General Assembly shall provide by
21appropriation from this fund. Beginning with the month
22immediately following the effective date of this amendatory Act
23of 1985, investment income which is attributable to the
24investment of moneys of the State Construction Account Fund

 

 

09800SB1739ham004- 35 -LRB098 10559 AMC 56940 a

1shall be retained in that fund for the uses specified in this
2Section.
3    (b) None of the money deposited into the State Construction
4Account Fund pursuant to subsection (c-40) of Section 13 of the
5Illinois Gambling Act shall be used for the construction,
6reconstruction, or maintenance of highways located within the
7City of Chicago.
8(Source: P.A. 84-431.)
 
9    (30 ILCS 105/6z-45)
10    Sec. 6z-45. The School Infrastructure Fund.
11    (a) The School Infrastructure Fund is created as a special
12fund in the State Treasury.
13    In addition to any other deposits authorized by law,
14beginning January 1, 2000, on the first day of each month, or
15as soon thereafter as may be practical, the State Treasurer and
16State Comptroller shall transfer the sum of $5,000,000 from the
17General Revenue Fund to the School Infrastructure Fund, except
18that, notwithstanding any other provision of law, and in
19addition to any other transfers that may be provided for by
20law, before June 30, 2012, the Comptroller and the Treasurer
21shall transfer $45,000,000 from the General Revenue Fund into
22the School Infrastructure Fund, and, for fiscal year 2013 only,
23the Treasurer and the Comptroller shall transfer $1,250,000
24from the General Revenue Fund to the School Infrastructure Fund
25on the first day of each month; provided, however, that no such

 

 

09800SB1739ham004- 36 -LRB098 10559 AMC 56940 a

1transfers shall be made from July 1, 2001 through June 30,
22003.
3    (b) Subject to the transfer provisions set forth below,
4money in the School Infrastructure Fund shall, if and when the
5State of Illinois incurs any bonded indebtedness for the
6construction of school improvements under the School
7Construction Law, be set aside and used for the purpose of
8paying and discharging annually the principal and interest on
9that bonded indebtedness then due and payable, and for no other
10purpose.
11    In addition to other transfers to the General Obligation
12Bond Retirement and Interest Fund made pursuant to Section 15
13of the General Obligation Bond Act, upon each delivery of bonds
14issued for construction of school improvements under the School
15Construction Law, the State Comptroller shall compute and
16certify to the State Treasurer the total amount of principal
17of, interest on, and premium, if any, on such bonds during the
18then current and each succeeding fiscal year. With respect to
19the interest payable on variable rate bonds, such
20certifications shall be calculated at the maximum rate of
21interest that may be payable during the fiscal year, after
22taking into account any credits permitted in the related
23indenture or other instrument against the amount of such
24interest required to be appropriated for that period.
25    On or before the last day of each month, the State
26Treasurer and State Comptroller shall transfer from the School

 

 

09800SB1739ham004- 37 -LRB098 10559 AMC 56940 a

1Infrastructure Fund to the General Obligation Bond Retirement
2and Interest Fund an amount sufficient to pay the aggregate of
3the principal of, interest on, and premium, if any, on the
4bonds payable on their next payment date, divided by the number
5of monthly transfers occurring between the last previous
6payment date (or the delivery date if no payment date has yet
7occurred) and the next succeeding payment date. Interest
8payable on variable rate bonds shall be calculated at the
9maximum rate of interest that may be payable for the relevant
10period, after taking into account any credits permitted in the
11related indenture or other instrument against the amount of
12such interest required to be appropriated for that period.
13Interest for which moneys have already been deposited into the
14capitalized interest account within the General Obligation
15Bond Retirement and Interest Fund shall not be included in the
16calculation of the amounts to be transferred under this
17subsection.
18    (b-5) The money deposited into the School Infrastructure
19Fund from transfers pursuant to subsections (c-30) and (c-35)
20of Section 13 of the Illinois Riverboat Gambling Act shall be
21applied, without further direction, as provided in subsection
22(b-3) of Section 5-35 of the School Construction Law.
23    (c) The surplus, if any, in the School Infrastructure Fund
24after payments made pursuant to subsections (b) and (b-5) of
25this Section shall, subject to appropriation, be used as
26follows:

 

 

09800SB1739ham004- 38 -LRB098 10559 AMC 56940 a

1    First - to make 3 payments to the School Technology
2Revolving Loan Fund as follows:
3        Transfer of $30,000,000 in fiscal year 1999;
4        Transfer of $20,000,000 in fiscal year 2000; and
5        Transfer of $10,000,000 in fiscal year 2001.
6    Second - to pay the expenses of the State Board of
7Education and the Capital Development Board in administering
8programs under the School Construction Law, the total expenses
9not to exceed $1,200,000 in any fiscal year.
10    Third - to pay any amounts due for grants for school
11construction projects and debt service under the School
12Construction Law.
13    Fourth - to pay any amounts due for grants for school
14maintenance projects under the School Construction Law.
15(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
 
16    (30 ILCS 105/6z-100 new)
17    Sec. 6z-100. The Gaming Facilities Fee Revenue Fund.
18    (a) The Gaming Facilities Fee Revenue Fund is created as a
19special fund in the State treasury.
20    (b) The revenues in the Fund shall be used, subject to
21appropriation, by the Comptroller for the purpose of (i)
22providing appropriations to the Illinois Gaming Board for the
23administration and enforcement of the Illinois Gambling Act,
24(ii) providing appropriations to the Illinois Racing Board for
25the administration and enforcement of the Illinois Horse Racing

 

 

09800SB1739ham004- 39 -LRB098 10559 AMC 56940 a

1Act of 1975, and (iii) payment of vouchers that are outstanding
2for more than 60 days. Whenever practical, the Comptroller must
3prioritize voucher payments for expenses related to medical
4assistance under the Illinois Public Aid Code, the Children's
5Health Insurance Program Act, and the Covering ALL KIDS Health
6Insurance Act.
7    (c) The Fund shall consist of fee revenues received
8pursuant to subsection (e-10) of Section 7 and subsections (b),
9(c), and (d) of Section 7.7 of the Illinois Gambling Act. All
10interest earned on moneys in the Fund shall be deposited into
11the Fund.
12    (d) The Fund shall not be subject to administrative charges
13or chargebacks, including, but not limited to, those authorized
14under Section 8h of this Act.
 
15    Section 27. The General Obligation Bond Act is amended by
16changing Sections 2 and 3 as follows:
 
17    (30 ILCS 330/2)  (from Ch. 127, par. 652)
18    Sec. 2. Authorization for Bonds. The State of Illinois is
19authorized to issue, sell and provide for the retirement of
20General Obligation Bonds of the State of Illinois for the
21categories and specific purposes expressed in Sections 2
22through 8 of this Act, in the total amount of $50,217,925,743
23$49,317,925,743.
24    The bonds authorized in this Section 2 and in Section 16 of

 

 

09800SB1739ham004- 40 -LRB098 10559 AMC 56940 a

1this Act are herein called "Bonds".
2    Of the total amount of Bonds authorized in this Act, up to
3$2,200,000,000 in aggregate original principal amount may be
4issued and sold in accordance with the Baccalaureate Savings
5Act in the form of General Obligation College Savings Bonds.
6    Of the total amount of Bonds authorized in this Act, up to
7$300,000,000 in aggregate original principal amount may be
8issued and sold in accordance with the Retirement Savings Act
9in the form of General Obligation Retirement Savings Bonds.
10    Of the total amount of Bonds authorized in this Act, the
11additional $10,000,000,000 authorized by Public Act 93-2, the
12$3,466,000,000 authorized by Public Act 96-43, and the
13$4,096,348,300 authorized by Public Act 96-1497 shall be used
14solely as provided in Section 7.2.
15    The issuance and sale of Bonds pursuant to the General
16Obligation Bond Act is an economical and efficient method of
17financing the long-term capital needs of the State. This Act
18will permit the issuance of a multi-purpose General Obligation
19Bond with uniform terms and features. This will not only lower
20the cost of registration but also reduce the overall cost of
21issuing debt by improving the marketability of Illinois General
22Obligation Bonds.
23(Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12;
2497-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff.
258-16-13.)
 

 

 

09800SB1739ham004- 41 -LRB098 10559 AMC 56940 a

1    (30 ILCS 330/3)  (from Ch. 127, par. 653)
2    Sec. 3. Capital Facilities. The amount of $10,653,963,443
3$9,753,963,443 is authorized to be used for the acquisition,
4development, construction, reconstruction, improvement,
5financing, architectural planning and installation of capital
6facilities within the State, consisting of buildings,
7structures, durable equipment, land, interests in land, and the
8costs associated with the purchase and implementation of
9information technology, including but not limited to the
10purchase of hardware and software, for the following specific
11purposes:
12        (a) $3,393,228,000 for educational purposes by State
13    universities and colleges, the Illinois Community College
14    Board created by the Public Community College Act and for
15    grants to public community colleges as authorized by
16    Sections 5-11 and 5-12 of the Public Community College Act;
17        (b) $1,648,420,000 for correctional purposes at State
18    prison and correctional centers;
19        (c) $599,183,000 for open spaces, recreational and
20    conservation purposes and the protection of land;
21        (d) $751,317,000 for child care facilities, mental and
22    public health facilities, and facilities for the care of
23    disabled veterans and their spouses;
24        (e) $2,152,790,000 for use by the State, its
25    departments, authorities, public corporations, commissions
26    and agencies;

 

 

09800SB1739ham004- 42 -LRB098 10559 AMC 56940 a

1        (f) $818,100 for cargo handling facilities at port
2    districts and for breakwaters, including harbor entrances,
3    at port districts in conjunction with facilities for small
4    boats and pleasure crafts;
5        (g) $297,177,074 for water resource management
6    projects;
7        (h) $16,940,269 for the provision of facilities for
8    food production research and related instructional and
9    public service activities at the State universities and
10    public community colleges;
11        (i) $36,000,000 for grants by the Secretary of State,
12    as State Librarian, for central library facilities
13    authorized by Section 8 of the Illinois Library System Act
14    and for grants by the Capital Development Board to units of
15    local government for public library facilities;
16        (j) $25,000,000 for the acquisition, development,
17    construction, reconstruction, improvement, financing,
18    architectural planning and installation of capital
19    facilities consisting of buildings, structures, durable
20    equipment and land for grants to counties, municipalities
21    or public building commissions with correctional
22    facilities that do not comply with the minimum standards of
23    the Department of Corrections under Section 3-15-2 of the
24    Unified Code of Corrections;
25        (k) $5,000,000 for grants in fiscal year 1988 by the
26    Department of Conservation for improvement or expansion of

 

 

09800SB1739ham004- 43 -LRB098 10559 AMC 56940 a

1    aquarium facilities located on property owned by a park
2    district;
3        (l) $599,590,000 to State agencies for grants to local
4    governments for the acquisition, financing, architectural
5    planning, development, alteration, installation, and
6    construction of capital facilities consisting of
7    buildings, structures, durable equipment, and land; and
8        (m) $228,500,000 for the Illinois Open Land Trust
9    Program as defined by the Illinois Open Land Trust Act.
10        (n) $900,000,000 for the acquisition, development,
11    construction, reconstruction, improvement, financing,
12    architectural planning, and installation of capital
13    facilities consisting of buildings, structures, durable
14    equipment, and land for gambling operations authorized
15    under Section 7.3a of the Illinois Gambling Act.
16    The amounts authorized above for capital facilities may be
17used for the acquisition, installation, alteration,
18construction, or reconstruction of capital facilities and for
19the purchase of equipment for the purpose of major capital
20improvements which will reduce energy consumption in State
21buildings or facilities.
22(Source: P.A. 98-94, eff. 7-17-13.)
 
23    Section 30. The Illinois Income Tax Act is amended by
24changing Section 201 as follows:
 

 

 

09800SB1739ham004- 44 -LRB098 10559 AMC 56940 a

1    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
2    Sec. 201. Tax Imposed.
3    (a) In general. A tax measured by net income is hereby
4imposed on every individual, corporation, trust and estate for
5each taxable year ending after July 31, 1969 on the privilege
6of earning or receiving income in or as a resident of this
7State. Such tax shall be in addition to all other occupation or
8privilege taxes imposed by this State or by any municipal
9corporation or political subdivision thereof.
10    (b) Rates. The tax imposed by subsection (a) of this
11Section shall be determined as follows, except as adjusted by
12subsection (d-1):
13        (1) In the case of an individual, trust or estate, for
14    taxable years ending prior to July 1, 1989, an amount equal
15    to 2 1/2% of the taxpayer's net income for the taxable
16    year.
17        (2) In the case of an individual, trust or estate, for
18    taxable years beginning prior to July 1, 1989 and ending
19    after June 30, 1989, an amount equal to the sum of (i) 2
20    1/2% of the taxpayer's net income for the period prior to
21    July 1, 1989, as calculated under Section 202.3, and (ii)
22    3% of the taxpayer's net income for the period after June
23    30, 1989, as calculated under Section 202.3.
24        (3) In the case of an individual, trust or estate, for
25    taxable years beginning after June 30, 1989, and ending
26    prior to January 1, 2011, an amount equal to 3% of the

 

 

09800SB1739ham004- 45 -LRB098 10559 AMC 56940 a

1    taxpayer's net income for the taxable year.
2        (4) In the case of an individual, trust, or estate, for
3    taxable years beginning prior to January 1, 2011, and
4    ending after December 31, 2010, an amount equal to the sum
5    of (i) 3% of the taxpayer's net income for the period prior
6    to January 1, 2011, as calculated under Section 202.5, and
7    (ii) 5% of the taxpayer's net income for the period after
8    December 31, 2010, as calculated under Section 202.5.
9        (5) In the case of an individual, trust, or estate, for
10    taxable years beginning on or after January 1, 2011, and
11    ending prior to January 1, 2015, an amount equal to 5% of
12    the taxpayer's net income for the taxable year.
13        (5.1) In the case of an individual, trust, or estate,
14    for taxable years beginning prior to January 1, 2015, and
15    ending after December 31, 2014, an amount equal to the sum
16    of (i) 5% of the taxpayer's net income for the period prior
17    to January 1, 2015, as calculated under Section 202.5, and
18    (ii) 3.75% of the taxpayer's net income for the period
19    after December 31, 2014, as calculated under Section 202.5.
20        (5.2) In the case of an individual, trust, or estate,
21    for taxable years beginning on or after January 1, 2015,
22    and ending prior to January 1, 2025, an amount equal to
23    3.75% of the taxpayer's net income for the taxable year.
24        (5.3) In the case of an individual, trust, or estate,
25    for taxable years beginning prior to January 1, 2025, and
26    ending after December 31, 2024, an amount equal to the sum

 

 

09800SB1739ham004- 46 -LRB098 10559 AMC 56940 a

1    of (i) 3.75% of the taxpayer's net income for the period
2    prior to January 1, 2025, as calculated under Section
3    202.5, and (ii) 3.25% of the taxpayer's net income for the
4    period after December 31, 2024, as calculated under Section
5    202.5.
6        (5.4) In the case of an individual, trust, or estate,
7    for taxable years beginning on or after January 1, 2025, an
8    amount equal to 3.25% of the taxpayer's net income for the
9    taxable year.
10        (6) In the case of a corporation, for taxable years
11    ending prior to July 1, 1989, an amount equal to 4% of the
12    taxpayer's net income for the taxable year.
13        (7) In the case of a corporation, for taxable years
14    beginning prior to July 1, 1989 and ending after June 30,
15    1989, an amount equal to the sum of (i) 4% of the
16    taxpayer's net income for the period prior to July 1, 1989,
17    as calculated under Section 202.3, and (ii) 4.8% of the
18    taxpayer's net income for the period after June 30, 1989,
19    as calculated under Section 202.3.
20        (8) In the case of a corporation, for taxable years
21    beginning after June 30, 1989, and ending prior to January
22    1, 2011, an amount equal to 4.8% of the taxpayer's net
23    income for the taxable year.
24        (9) In the case of a corporation, for taxable years
25    beginning prior to January 1, 2011, and ending after
26    December 31, 2010, an amount equal to the sum of (i) 4.8%

 

 

09800SB1739ham004- 47 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 48 -LRB098 10559 AMC 56940 a

1        (14) In the case of a corporation, for taxable years
2    beginning on or after January 1, 2025, an amount equal to
3    4.8% of the taxpayer's net income for the taxable year.
4    The rates under this subsection (b) are subject to the
5provisions of Section 201.5.
6    (b-5) Surcharge; sale or exchange of assets, properties,
7and intangibles of electronic gaming licensees. For each of
8taxable years 2014 through 2022, a surcharge is imposed on all
9taxpayers on income arising from the sale or exchange of
10capital assets, depreciable business property, real property
11used in the trade or business, and Section 197 intangibles (i)
12of an organization licensee under the Illinois Horse Racing Act
13of 1975 and (ii) of an electronic gaming licensee under the
14Illinois Gambling Act. The amount of the surcharge is equal to
15the amount of federal income tax liability for the taxable year
16attributable to those sales and exchanges. The surcharge
17imposed shall not apply if:
18        (1) the electronic gaming license, organization
19    license, or race track property is transferred as a result
20    of any of the following:
21            (A) bankruptcy, a receivership, or a debt
22        adjustment initiated by or against the initial
23        licensee or the substantial owners of the initial
24        licensee;
25            (B) cancellation, revocation, or termination of
26        any such license by the Illinois Gaming Board or the

 

 

09800SB1739ham004- 49 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 50 -LRB098 10559 AMC 56940 a

1not subject to a surcharge. The Department shall adopt rules
2necessary to implement and administer this subsection.
3    (c) Personal Property Tax Replacement Income Tax.
4Beginning on July 1, 1979 and thereafter, in addition to such
5income tax, there is also hereby imposed the Personal Property
6Tax Replacement Income Tax measured by net income on every
7corporation (including Subchapter S corporations), partnership
8and trust, for each taxable year ending after June 30, 1979.
9Such taxes are imposed on the privilege of earning or receiving
10income in or as a resident of this State. The Personal Property
11Tax Replacement Income Tax shall be in addition to the income
12tax imposed by subsections (a) and (b) of this Section and in
13addition to all other occupation or privilege taxes imposed by
14this State or by any municipal corporation or political
15subdivision thereof.
16    (d) Additional Personal Property Tax Replacement Income
17Tax Rates. The personal property tax replacement income tax
18imposed by this subsection and subsection (c) of this Section
19in the case of a corporation, other than a Subchapter S
20corporation and except as adjusted by subsection (d-1), shall
21be an additional amount equal to 2.85% of such taxpayer's net
22income for the taxable year, except that beginning on January
231, 1981, and thereafter, the rate of 2.85% specified in this
24subsection shall be reduced to 2.5%, and in the case of a
25partnership, trust or a Subchapter S corporation shall be an
26additional amount equal to 1.5% of such taxpayer's net income

 

 

09800SB1739ham004- 51 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 52 -LRB098 10559 AMC 56940 a

1    shall the sum of the rates of tax imposed by subsections
2    (b) and (d) be reduced below the rate at which the sum of:
3            (A) the total amount of tax imposed on such foreign
4        insurer under this Act for a taxable year, net of all
5        credits allowed under this Act, plus
6            (B) the privilege tax imposed by Section 409 of the
7        Illinois Insurance Code, the fire insurance company
8        tax imposed by Section 12 of the Fire Investigation
9        Act, and the fire department taxes imposed under
10        Section 11-10-1 of the Illinois Municipal Code,
11    equals 1.25% for taxable years ending prior to December 31,
12    2003, or 1.75% for taxable years ending on or after
13    December 31, 2003, of the net taxable premiums written for
14    the taxable year, as described by subsection (1) of Section
15    409 of the Illinois Insurance Code. This paragraph will in
16    no event increase the rates imposed under subsections (b)
17    and (d).
18        (2) Any reduction in the rates of tax imposed by this
19    subsection shall be applied first against the rates imposed
20    by subsection (b) and only after the tax imposed by
21    subsection (a) net of all credits allowed under this
22    Section other than the credit allowed under subsection (i)
23    has been reduced to zero, against the rates imposed by
24    subsection (d).
25    This subsection (d-1) is exempt from the provisions of
26Section 250.

 

 

09800SB1739ham004- 53 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 54 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 55 -LRB098 10559 AMC 56940 a

1    or, if the amount of the credit exceeds the tax liability
2    for that year, whether it exceeds the original liability or
3    the liability as later amended, such excess may be carried
4    forward and applied to the tax liability of the 5 taxable
5    years following the excess credit years. The credit shall
6    be applied to the earliest year for which there is a
7    liability. If there is credit from more than one tax year
8    that is available to offset a liability, earlier credit
9    shall be applied first.
10        (2) The term "qualified property" means property
11    which:
12            (A) is tangible, whether new or used, including
13        buildings and structural components of buildings and
14        signs that are real property, but not including land or
15        improvements to real property that are not a structural
16        component of a building such as landscaping, sewer
17        lines, local access roads, fencing, parking lots, and
18        other appurtenances;
19            (B) is depreciable pursuant to Section 167 of the
20        Internal Revenue Code, except that "3-year property"
21        as defined in Section 168(c)(2)(A) of that Code is not
22        eligible for the credit provided by this subsection
23        (e);
24            (C) is acquired by purchase as defined in Section
25        179(d) of the Internal Revenue Code;
26            (D) is used in Illinois by a taxpayer who is

 

 

09800SB1739ham004- 56 -LRB098 10559 AMC 56940 a

1        primarily engaged in manufacturing, or in mining coal
2        or fluorite, or in retailing, or was placed in service
3        on or after July 1, 2006 in a River Edge Redevelopment
4        Zone established pursuant to the River Edge
5        Redevelopment Zone Act; and
6            (E) has not previously been used in Illinois in
7        such a manner and by such a person as would qualify for
8        the credit provided by this subsection (e) or
9        subsection (f).
10        (3) For purposes of this subsection (e),
11    "manufacturing" means the material staging and production
12    of tangible personal property by procedures commonly
13    regarded as manufacturing, processing, fabrication, or
14    assembling which changes some existing material into new
15    shapes, new qualities, or new combinations. For purposes of
16    this subsection (e) the term "mining" shall have the same
17    meaning as the term "mining" in Section 613(c) of the
18    Internal Revenue Code. For purposes of this subsection (e),
19    the term "retailing" means the sale of tangible personal
20    property for use or consumption and not for resale, or
21    services rendered in conjunction with the sale of tangible
22    personal property for use or consumption and not for
23    resale. For purposes of this subsection (e), "tangible
24    personal property" has the same meaning as when that term
25    is used in the Retailers' Occupation Tax Act, and, for
26    taxable years ending after December 31, 2008, does not

 

 

09800SB1739ham004- 57 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 58 -LRB098 10559 AMC 56940 a

1    purchase price shall be deemed a disposition of qualified
2    property to the extent of such reduction.
3        (8) Unless the investment credit is extended by law,
4    the basis of qualified property shall not include costs
5    incurred after December 31, 2018, except for costs incurred
6    pursuant to a binding contract entered into on or before
7    December 31, 2018.
8        (9) Each taxable year ending before December 31, 2000,
9    a partnership may elect to pass through to its partners the
10    credits to which the partnership is entitled under this
11    subsection (e) for the taxable year. A partner may use the
12    credit allocated to him or her under this paragraph only
13    against the tax imposed in subsections (c) and (d) of this
14    Section. If the partnership makes that election, those
15    credits shall be allocated among the partners in the
16    partnership in accordance with the rules set forth in
17    Section 704(b) of the Internal Revenue Code, and the rules
18    promulgated under that Section, and the allocated amount of
19    the credits shall be allowed to the partners for that
20    taxable year. The partnership shall make this election on
21    its Personal Property Tax Replacement Income Tax return for
22    that taxable year. The election to pass through the credits
23    shall be irrevocable.
24        For taxable years ending on or after December 31, 2000,
25    a partner that qualifies its partnership for a subtraction
26    under subparagraph (I) of paragraph (2) of subsection (d)

 

 

09800SB1739ham004- 59 -LRB098 10559 AMC 56940 a

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

 

 

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1    and distributive share of income under Sections 702 and 704
2    and Subchapter S of the Internal Revenue Code. The credit
3    shall be .5% of the basis for such property. The credit
4    shall be available only in the taxable year in which the
5    property is placed in service in the Enterprise Zone or
6    River Edge Redevelopment Zone and shall not be allowed to
7    the extent that it would reduce a taxpayer's liability for
8    the tax imposed by subsections (a) and (b) of this Section
9    to below zero. For tax years ending on or after December
10    31, 1985, the credit shall be allowed for the tax year in
11    which the property is placed in service, or, if the amount
12    of the credit exceeds the tax liability for that year,
13    whether it exceeds the original liability or the liability
14    as later amended, such excess may be carried forward and
15    applied to the tax liability of the 5 taxable years
16    following the excess credit year. The credit shall be
17    applied to the earliest year for which there is a
18    liability. If there is credit from more than one tax year
19    that is available to offset a liability, the credit
20    accruing first in time shall be applied first.
21        (2) The term qualified property means property which:
22            (A) is tangible, whether new or used, including
23        buildings and structural components of buildings;
24            (B) is depreciable pursuant to Section 167 of the
25        Internal Revenue Code, except that "3-year property"
26        as defined in Section 168(c)(2)(A) of that Code is not

 

 

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

 

 

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

 

 

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1    the additional credit shall be limited to that percentage
2    times a fraction, the numerator of which is 0.5% and the
3    denominator of which is 1%, but shall not exceed 0.5%.
4    (g) (Blank).
5    (h) Investment credit; High Impact Business.
6        (1) Subject to subsections (b) and (b-5) of Section 5.5
7    of the Illinois Enterprise Zone Act, a taxpayer shall be
8    allowed a credit against the tax imposed by subsections (a)
9    and (b) of this Section for investment in qualified
10    property which is placed in service by a Department of
11    Commerce and Economic Opportunity designated High Impact
12    Business. The credit shall be .5% of the basis for such
13    property. The credit shall not be available (i) until the
14    minimum investments in qualified property set forth in
15    subdivision (a)(3)(A) of Section 5.5 of the Illinois
16    Enterprise Zone Act have been satisfied or (ii) until the
17    time authorized in subsection (b-5) of the Illinois
18    Enterprise Zone Act for entities designated as High Impact
19    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
20    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
21    Act, and shall not be allowed to the extent that it would
22    reduce a taxpayer's liability for the tax imposed by
23    subsections (a) and (b) of this Section to below zero. The
24    credit applicable to such investments shall be taken in the
25    taxable year in which such investments have been completed.
26    The credit for additional investments beyond the minimum

 

 

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

 

 

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

 

 

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

 

 

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1multiplying the tax imposed by subsections (c) and (d) of this
2Section by a fraction, the numerator of which is base income
3allocable to Illinois and the denominator of which is Illinois
4base income, and further multiplying the product by the tax
5rate imposed by subsections (a) and (b) of this Section.
6    Any credit earned on or after December 31, 1986 under this
7subsection which is unused in the year the credit is computed
8because it exceeds the tax liability imposed by subsections (a)
9and (b) for that year (whether it exceeds the original
10liability or the liability as later amended) may be carried
11forward and applied to the tax liability imposed by subsections
12(a) and (b) of the 5 taxable years following the excess credit
13year, provided that no credit may be carried forward to any
14year ending on or after December 31, 2003. This credit shall be
15applied first to the earliest year for which there is a
16liability. If there is a credit under this subsection from more
17than one tax year that is available to offset a liability the
18earliest credit arising under this subsection shall be applied
19first.
20    If, during any taxable year ending on or after December 31,
211986, the tax imposed by subsections (c) and (d) of this
22Section for which a taxpayer has claimed a credit under this
23subsection (i) is reduced, the amount of credit for such tax
24shall also be reduced. Such reduction shall be determined by
25recomputing the credit to take into account the reduced tax
26imposed by subsections (c) and (d). If any portion of the

 

 

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1reduced amount of credit has been carried to a different
2taxable year, an amended return shall be filed for such taxable
3year to reduce the amount of credit claimed.
4    (j) Training expense credit. Beginning with tax years
5ending on or after December 31, 1986 and prior to December 31,
62003, a taxpayer shall be allowed a credit against the tax
7imposed by subsections (a) and (b) under this Section for all
8amounts paid or accrued, on behalf of all persons employed by
9the taxpayer in Illinois or Illinois residents employed outside
10of Illinois by a taxpayer, for educational or vocational
11training in semi-technical or technical fields or semi-skilled
12or skilled fields, which were deducted from gross income in the
13computation of taxable income. The credit against the tax
14imposed by subsections (a) and (b) shall be 1.6% of such
15training expenses. For partners, shareholders of subchapter S
16corporations, and owners of limited liability companies, if the
17liability company is treated as a partnership for purposes of
18federal and State income taxation, there shall be allowed a
19credit under this subsection (j) to be determined in accordance
20with the determination of income and distributive share of
21income under Sections 702 and 704 and subchapter S of the
22Internal Revenue Code.
23    Any credit allowed under this subsection which is unused in
24the year the credit is earned may be carried forward to each of
25the 5 taxable years following the year for which the credit is
26first computed until it is used. This credit shall be applied

 

 

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1first to the earliest year for which there is a liability. If
2there is a credit under this subsection from more than one tax
3year that is available to offset a liability the earliest
4credit arising under this subsection shall be applied first. No
5carryforward credit may be claimed in any tax year ending on or
6after December 31, 2003.
7    (k) Research and development credit. For tax years ending
8after July 1, 1990 and prior to December 31, 2003, and
9beginning again for tax years ending on or after December 31,
102004, and ending prior to January 1, 2016, a taxpayer shall be
11allowed a credit against the tax imposed by subsections (a) and
12(b) of this Section for increasing research activities in this
13State. The credit allowed against the tax imposed by
14subsections (a) and (b) shall be equal to 6 1/2% of the
15qualifying expenditures for increasing research activities in
16this State. For partners, shareholders of subchapter S
17corporations, and owners of limited liability companies, if the
18liability company is treated as a partnership for purposes of
19federal and State income taxation, there shall be allowed a
20credit under this subsection to be determined in accordance
21with the determination of income and distributive share of
22income under Sections 702 and 704 and subchapter S of the
23Internal Revenue Code.
24    For purposes of this subsection, "qualifying expenditures"
25means the qualifying expenditures as defined for the federal
26credit for increasing research activities which would be

 

 

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1allowable under Section 41 of the Internal Revenue Code and
2which are conducted in this State, "qualifying expenditures for
3increasing research activities in this State" means the excess
4of qualifying expenditures for the taxable year in which
5incurred over qualifying expenditures for the base period,
6"qualifying expenditures for the base period" means the average
7of the qualifying expenditures for each year in the base
8period, and "base period" means the 3 taxable years immediately
9preceding the taxable year for which the determination is being
10made.
11    Any credit in excess of the tax liability for the taxable
12year may be carried forward. A taxpayer may elect to have the
13unused credit shown on its final completed return carried over
14as a credit against the tax liability for the following 5
15taxable years or until it has been fully used, whichever occurs
16first; provided that no credit earned in a tax year ending
17prior to December 31, 2003 may be carried forward to any year
18ending on or after December 31, 2003.
19    If an unused credit is carried forward to a given year from
202 or more earlier years, that credit arising in the earliest
21year will be applied first against the tax liability for the
22given year. If a tax liability for the given year still
23remains, the credit from the next earliest year will then be
24applied, and so on, until all credits have been used or no tax
25liability for the given year remains. Any remaining unused
26credit or credits then will be carried forward to the next

 

 

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1following year in which a tax liability is incurred, except
2that no credit can be carried forward to a year which is more
3than 5 years after the year in which the expense for which the
4credit is given was incurred.
5    No inference shall be drawn from this amendatory Act of the
691st General Assembly in construing this Section for taxable
7years beginning before January 1, 1999.
8    (l) Environmental Remediation Tax Credit.
9        (i) For tax years ending after December 31, 1997 and on
10    or before December 31, 2001, a taxpayer shall be allowed a
11    credit against the tax imposed by subsections (a) and (b)
12    of this Section for certain amounts paid for unreimbursed
13    eligible remediation costs, as specified in this
14    subsection. For purposes of this Section, "unreimbursed
15    eligible remediation costs" means costs approved by the
16    Illinois Environmental Protection Agency ("Agency") under
17    Section 58.14 of the Environmental Protection Act that were
18    paid in performing environmental remediation at a site for
19    which a No Further Remediation Letter was issued by the
20    Agency and recorded under Section 58.10 of the
21    Environmental Protection Act. The credit must be claimed
22    for the taxable year in which Agency approval of the
23    eligible remediation costs is granted. The credit is not
24    available to any taxpayer if the taxpayer or any related
25    party caused or contributed to, in any material respect, a
26    release of regulated substances on, in, or under the site

 

 

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

 

 

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1    accordance with the determination of income and
2    distributive share of income under Sections 702 and 704 and
3    subchapter S of the Internal Revenue Code.
4        (ii) A credit allowed under this subsection that is
5    unused in the year the credit is earned may be carried
6    forward to each of the 5 taxable years following the year
7    for which the credit is first earned until it is used. The
8    term "unused credit" does not include any amounts of
9    unreimbursed eligible remediation costs in excess of the
10    maximum credit per site authorized under paragraph (i).
11    This credit shall be applied first to the earliest year for
12    which there is a liability. If there is a credit under this
13    subsection from more than one tax year that is available to
14    offset a liability, the earliest credit arising under this
15    subsection shall be applied first. A credit allowed under
16    this subsection may be sold to a buyer as part of a sale of
17    all or part of the remediation site for which the credit
18    was granted. The purchaser of a remediation site and the
19    tax credit shall succeed to the unused credit and remaining
20    carry-forward period of the seller. To perfect the
21    transfer, the assignor shall record the transfer in the
22    chain of title for the site and provide written notice to
23    the Director of the Illinois Department of Revenue of the
24    assignor's intent to sell the remediation site and the
25    amount of the tax credit to be transferred as a portion of
26    the sale. In no event may a credit be transferred to any

 

 

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1    taxpayer if the taxpayer or a related party would not be
2    eligible under the provisions of subsection (i).
3        (iii) For purposes of this Section, the term "site"
4    shall have the same meaning as under Section 58.2 of the
5    Environmental Protection Act.
6    (m) Education expense credit. Beginning with tax years
7ending after December 31, 1999, a taxpayer who is the custodian
8of one or more qualifying pupils shall be allowed a credit
9against the tax imposed by subsections (a) and (b) of this
10Section for qualified education expenses incurred on behalf of
11the qualifying pupils. The credit shall be equal to 25% of
12qualified education expenses, but in no event may the total
13credit under this subsection claimed by a family that is the
14custodian of qualifying pupils exceed $500. In no event shall a
15credit under this subsection reduce the taxpayer's liability
16under this Act to less than zero. This subsection is exempt
17from the provisions of Section 250 of this Act.
18    For purposes of this subsection:
19    "Qualifying pupils" means individuals who (i) are
20residents of the State of Illinois, (ii) are under the age of
2121 at the close of the school year for which a credit is
22sought, and (iii) during the school year for which a credit is
23sought were full-time pupils enrolled in a kindergarten through
24twelfth grade education program at any school, as defined in
25this subsection.
26    "Qualified education expense" means the amount incurred on

 

 

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1behalf of a qualifying pupil in excess of $250 for tuition,
2book fees, and lab fees at the school in which the pupil is
3enrolled during the regular school year.
4    "School" means any public or nonpublic elementary or
5secondary school in Illinois that is in compliance with Title
6VI of the Civil Rights Act of 1964 and attendance at which
7satisfies the requirements of Section 26-1 of the School Code,
8except that nothing shall be construed to require a child to
9attend any particular public or nonpublic school to qualify for
10the credit under this Section.
11    "Custodian" means, with respect to qualifying pupils, an
12Illinois resident who is a parent, the parents, a legal
13guardian, or the legal guardians of the qualifying pupils.
14    (n) River Edge Redevelopment Zone site remediation tax
15credit.
16        (i) For tax years ending on or after December 31, 2006,
17    a taxpayer shall be allowed a credit against the tax
18    imposed by subsections (a) and (b) of this Section for
19    certain amounts paid for unreimbursed eligible remediation
20    costs, as specified in this subsection. For purposes of
21    this Section, "unreimbursed eligible remediation costs"
22    means costs approved by the Illinois Environmental
23    Protection Agency ("Agency") under Section 58.14a of the
24    Environmental Protection Act that were paid in performing
25    environmental remediation at a site within a River Edge
26    Redevelopment Zone for which a No Further Remediation

 

 

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1    Letter was issued by the Agency and recorded under Section
2    58.10 of the Environmental Protection Act. The credit must
3    be claimed for the taxable year in which Agency approval of
4    the eligible remediation costs is granted. The credit is
5    not available to any taxpayer if the taxpayer or any
6    related party caused or contributed to, in any material
7    respect, a release of regulated substances on, in, or under
8    the site that was identified and addressed by the remedial
9    action pursuant to the Site Remediation Program of the
10    Environmental Protection Act. Determinations as to credit
11    availability for purposes of this Section shall be made
12    consistent with rules adopted by the Pollution Control
13    Board pursuant to the Illinois Administrative Procedure
14    Act for the administration and enforcement of Section 58.9
15    of the Environmental Protection Act. For purposes of this
16    Section, "taxpayer" includes a person whose tax attributes
17    the taxpayer has succeeded to under Section 381 of the
18    Internal Revenue Code and "related party" includes the
19    persons disallowed a deduction for losses by paragraphs
20    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
21    Code by virtue of being a related taxpayer, as well as any
22    of its partners. The credit allowed against the tax imposed
23    by subsections (a) and (b) shall be equal to 25% of the
24    unreimbursed eligible remediation costs in excess of
25    $100,000 per site.
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. This
4    credit shall be applied first to the earliest year for
5    which there is a liability. If there is a credit under this
6    subsection from more than one tax year that is available to
7    offset a liability, the earliest credit arising under this
8    subsection shall be applied first. A credit allowed under
9    this subsection may be sold to a buyer as part of a sale of
10    all or part of the remediation site for which the credit
11    was granted. The purchaser of a remediation site and the
12    tax credit shall succeed to the unused credit and remaining
13    carry-forward period of the seller. To perfect the
14    transfer, the assignor shall record the transfer in the
15    chain of title for the site and provide written notice to
16    the Director of the Illinois Department of Revenue of the
17    assignor's intent to sell the remediation site and the
18    amount of the tax credit to be transferred as a portion of
19    the sale. In no event may a credit be transferred to any
20    taxpayer if the taxpayer or a related party would not be
21    eligible under the provisions of subsection (i).
22        (iii) For purposes of this Section, the term "site"
23    shall have the same meaning as under Section 58.2 of the
24    Environmental Protection Act.
25    (o) For each of taxable years during the Compassionate Use
26of Medical Cannabis Pilot Program, a surcharge is imposed on

 

 

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1all taxpayers on income arising from the sale or exchange of
2capital assets, depreciable business property, real property
3used in the trade or business, and Section 197 intangibles of
4an organization registrant under the Compassionate Use of
5Medical Cannabis Pilot Program Act. The amount of the surcharge
6is equal to the amount of federal income tax liability for the
7taxable year attributable to those sales and exchanges. The
8surcharge imposed does not apply if:
9        (1) the medical cannabis cultivation center
10    registration, medical cannabis dispensary registration, or
11    the property of a registration is transferred as a result
12    of any of the following:
13            (A) bankruptcy, a receivership, or a debt
14        adjustment initiated by or against the initial
15        registration or the substantial owners of the initial
16        registration;
17            (B) cancellation, revocation, or termination of
18        any registration by the Illinois Department of Public
19        Health;
20            (C) a determination by the Illinois Department of
21        Public Health that transfer of the registration is in
22        the best interests of Illinois qualifying patients as
23        defined by the Compassionate Use of Medical Cannabis
24        Pilot Program Act;
25            (D) the death of an owner of the equity interest in
26        a registrant;

 

 

09800SB1739ham004- 79 -LRB098 10559 AMC 56940 a

1            (E) the acquisition of a controlling interest in
2        the stock or substantially all of the assets of a
3        publicly traded company;
4            (F) a transfer by a parent company to a wholly
5        owned subsidiary; or
6            (G) the transfer or sale to or by one person to
7        another person where both persons were initial owners
8        of the registration when the registration was issued;
9        or
10        (2) the cannabis cultivation center registration,
11    medical cannabis dispensary registration, or the
12    controlling interest in a registrant's property is
13    transferred in a transaction to lineal descendants in which
14    no gain or loss is recognized or as a result of a
15    transaction in accordance with Section 351 of the Internal
16    Revenue Code in which no gain or loss is recognized.
17(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
18eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; revised
198-9-13.)
 
20    Section 35. The Joliet Regional Port District Act is
21amended by changing Section 5.1 as follows:
 
22    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
23    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
24any other provision of this Act, the District may not regulate

 

 

09800SB1739ham004- 80 -LRB098 10559 AMC 56940 a

1the operation, conduct, or navigation of any riverboat gambling
2casino licensed under the Illinois Riverboat Gambling Act, and
3the District may not license, tax, or otherwise levy any
4assessment of any kind on any riverboat gambling casino
5licensed under the Illinois Riverboat Gambling Act. The General
6Assembly declares that the powers to regulate the operation,
7conduct, and navigation of riverboat gambling casinos and to
8license, tax, and levy assessments upon riverboat gambling
9casinos are exclusive powers of the State of Illinois and the
10Illinois Gaming Board as provided in the Illinois Riverboat
11Gambling Act.
12(Source: P.A. 87-1175.)
 
13    Section 40. The Consumer Installment Loan Act is amended by
14changing Section 12.5 as follows:
 
15    (205 ILCS 670/12.5)
16    Sec. 12.5. Limited purpose branch.
17    (a) Upon the written approval of the Director, a licensee
18may maintain a limited purpose branch for the sole purpose of
19making loans as permitted by this Act. A limited purpose branch
20may include an automatic loan machine. No other activity shall
21be conducted at the site, including but not limited to,
22accepting payments, servicing the accounts, or collections.
23    (b) The licensee must submit an application for a limited
24purpose branch to the Director on forms prescribed by the

 

 

09800SB1739ham004- 81 -LRB098 10559 AMC 56940 a

1Director with an application fee of $300. The approval for the
2limited purpose branch must be renewed concurrently with the
3renewal of the licensee's license along with a renewal fee of
4$300 for the limited purpose branch.
5    (c) The books, accounts, records, and files of the limited
6purpose branch's transactions shall be maintained at the
7licensee's licensed location. The licensee shall notify the
8Director of the licensed location at which the books, accounts,
9records, and files shall be maintained.
10    (d) The licensee shall prominently display at the limited
11purpose branch the address and telephone number of the
12licensee's licensed location.
13    (e) No other business shall be conducted at the site of the
14limited purpose branch unless authorized by the Director.
15    (f) The Director shall make and enforce reasonable rules
16for the conduct of a limited purpose branch.
17    (g) A limited purpose branch may not be located within
181,000 feet of a facility operated by an inter-track wagering
19licensee or an organization licensee subject to the Illinois
20Horse Racing Act of 1975, on a riverboat or in a casino subject
21to the Illinois Riverboat Gambling Act, or within 1,000 feet of
22the location at which the riverboat docks or within 1,000 feet
23of a casino.
24(Source: P.A. 90-437, eff. 1-1-98.)
 
25    Section 45. The Illinois Horse Racing Act of 1975 is

 

 

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1amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 19, 20,
221, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, 54, and
354.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
434.3, 39.2, and 56 as follows:
 
5    (230 ILCS 5/1.2)
6    Sec. 1.2. Legislative intent. This Act is intended to
7benefit the people of the State of Illinois by encouraging the
8breeding and production of race horses, assisting economic
9development and promoting Illinois tourism. The General
10Assembly finds and declares it to be the public policy of the
11State of Illinois to:
12    (a) support and enhance Illinois' horse racing industry,
13which is a significant component within the agribusiness
14industry;
15    (b) ensure that Illinois' horse racing industry remains
16competitive with neighboring states;
17    (c) stimulate growth within Illinois' horse racing
18industry, thereby encouraging new investment and development
19to produce additional tax revenues and to create additional
20jobs;
21    (d) promote the further growth of tourism;
22    (e) encourage the breeding of thoroughbred and
23standardbred horses in this State; and
24    (f) ensure that public confidence and trust in the
25credibility and integrity of racing operations and the

 

 

09800SB1739ham004- 83 -LRB098 10559 AMC 56940 a

1regulatory process is maintained.
2(Source: P.A. 91-40, eff. 6-25-99.)
 
3    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
4    Sec. 3.11. "Organization Licensee" means any person
5receiving an organization license from the Board to conduct a
6race meeting or meetings. With respect only to electronic
7gaming, "organization licensee" includes the authorization for
8an electronic gaming license under subsection (a) of Section 56
9of this Act.
10(Source: P.A. 79-1185.)
 
11    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
12    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
13system of wagering" means a form of wagering on the outcome of
14horse races in which wagers are made in various denominations
15on a horse or horses and all wagers for each race are pooled
16and held by a licensee for distribution in a manner approved by
17the Board. "Pari-mutuel system of wagering" does not include
18wagering on historic races. Wagers may be placed via any method
19or at any location authorized under this Act.
20(Source: P.A. 96-762, eff. 8-25-09.)
 
21    (230 ILCS 5/3.31 new)
22    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
23receipts" means the gross receipts less winnings paid to

 

 

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1wagerers.
 
2    (230 ILCS 5/3.32 new)
3    Sec. 3.32. Gross receipts. "Gross receipts" means the total
4amount of money exchanged for the purchase of chips, tokens, or
5electronic cards by riverboat or casino patrons or electronic
6gaming patrons.
 
7    (230 ILCS 5/3.33 new)
8    Sec. 3.33. Electronic gaming. "Electronic gaming" means
9slot machine gambling, video game of chance gambling, or
10gambling with electronic gambling games as defined in the
11Illinois Gambling Act or defined by the Illinois Gaming Board
12that is conducted at a race track pursuant to an electronic
13gaming license.
 
14    (230 ILCS 5/3.35 new)
15    Sec. 3.35. Electronic gaming license. "Electronic gaming
16license" means a license issued by the Illinois Gaming Board
17under Section 7.7 of the Illinois Gambling Act authorizing
18electronic gaming at an electronic gaming facility.
 
19    (230 ILCS 5/3.36 new)
20    Sec. 3.36. Electronic gaming facility. "Electronic gaming
21facility" means that portion of an organization licensee's race
22track facility at which electronic gaming is conducted.
 

 

 

09800SB1739ham004- 85 -LRB098 10559 AMC 56940 a

1    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
2    Sec. 6. Restrictions on Board members.
3    (a) No person shall be appointed a member of the Board or
4continue to be a member of the Board if the person or any
5member of their immediate family is a member of the Board of
6Directors, employee, or financially interested in any of the
7following: (i) any licensee or other person who has applied for
8racing dates to the Board, or the operations thereof including,
9but not limited to, concessions, data processing, track
10maintenance, track security, and pari-mutuel operations,
11located, scheduled, or doing business within the State of
12Illinois, (ii) any race horse competing at a meeting under the
13Board's jurisdiction, or (iii) any licensee under the Illinois
14Gambling Act. No person shall be appointed a member of the
15Board or continue to be a member of the Board who is (or any
16member of whose family is) a member of the Board of Directors
17of, or who is a person financially interested in, any licensee
18or other person who has applied for racing dates to the Board,
19or the operations thereof including, but not limited to,
20concessions, data processing, track maintenance, track
21security and pari-mutuel operations, located, scheduled or
22doing business within the State of Illinois, or in any race
23horse competing at a meeting under the Board's jurisdiction. No
24Board member shall hold any other public office for which he
25shall receive compensation other than necessary travel or other

 

 

09800SB1739ham004- 86 -LRB098 10559 AMC 56940 a

1incidental expenses.
2    (b) No person shall be a member of the Board who is not of
3good moral character or who has been convicted of, or is under
4indictment for, a felony under the laws of Illinois or any
5other state, or the United States.
6    (c) No member of the Board or employee shall engage in any
7political activity.
8    For the purposes of this subsection (c):
9    "Political activity" means any activity in support of or in
10connection with any campaign for State or local elective office
11or any political organization, but does not include activities
12(i) relating to the support or opposition of any executive,
13legislative, or administrative action (as those terms are
14defined in Section 2 of the Lobbyist Registration Act), (ii)
15relating to collective bargaining, or (iii) that are otherwise
16in furtherance of the person's official State duties or
17governmental and public service functions.
18    "Political organization" means a party, committee,
19association, fund, or other organization (whether or not
20incorporated) that is required to file a statement of
21organization with the State Board of Elections or county clerk
22under Section 9-3 of the Election Code, but only with regard to
23those activities that require filing with the State Board of
24Elections or county clerk.
25    (d) Board members and employees may not engage in
26communications or any activity that may cause or have the

 

 

09800SB1739ham004- 87 -LRB098 10559 AMC 56940 a

1appearance of causing a conflict of interest. A conflict of
2interest exists if a situation influences or creates the
3appearance that it may influence judgment or performance of
4regulatory duties and responsibilities. This prohibition shall
5extend to any act identified by Board action that, in the
6judgment of the Board, could represent the potential for or the
7appearance of a conflict of interest.
8    (e) Board members and employees may not accept any gift,
9gratuity, service, compensation, travel, lodging, or thing of
10value, with the exception of unsolicited items of an incidental
11nature, from any person, corporation, limited liability
12company, or entity doing business with the Board.
13    (f) A Board member or employee shall not use or attempt to
14use his or her official position to secure, or attempt to
15secure, any privilege, advantage, favor, or influence for
16himself or herself or others. No Board member or employee,
17within a period of one year immediately preceding nomination by
18the Governor or employment, shall have been employed by or
19received compensation or fees for services from a person or
20entity, or its parent or affiliate, that has engaged in
21business with the Board, a licensee under this Act, or a
22licensee under the Illinois Gambling Act. In addition, all
23Board members and employees are subject to the restrictions set
24forth in Section 5-45 of the State Officials and Employees
25Ethics Act.
26(Source: P.A. 89-16, eff. 5-30-95.)
 

 

 

09800SB1739ham004- 88 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 89 -LRB098 10559 AMC 56940 a

1Agriculture shall be exempt from the requirements of Sections
215.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
3(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
4and 25. The Board and the Department of Agriculture may extend
5any or all of these exemptions to any contractor or agent
6engaged by the Department of Agriculture to conduct its race
7meetings when the Board determines that this would best serve
8the public interest and the interest of horse racing.
9    Notwithstanding any provision of law to the contrary, it
10shall be lawful for any licensee to operate pari-mutuel
11wagering or contract with the Department of Agriculture to
12operate pari-mutuel wagering at the DuQuoin State Fairgrounds
13or for the Department to enter into contracts with a licensee,
14employ its owners, employees or agents and employ such other
15occupation licensees as the Department deems necessary in
16connection with race meetings and wagerings.
17    (b) The Board is vested with the full power to promulgate
18reasonable rules and regulations for the purpose of
19administering the provisions of this Act and to prescribe
20reasonable rules, regulations and conditions under which all
21horse race meetings or wagering in the State shall be
22conducted. Such reasonable rules and regulations are to provide
23for the prevention of practices detrimental to the public
24interest and to promote the best interests of horse racing and
25to impose penalties for violations thereof.
26    (c) The Board, and any person or persons to whom it

 

 

09800SB1739ham004- 90 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 91 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 92 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 93 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 94 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 95 -LRB098 10559 AMC 56940 a

1    (p) To insure the convenience, comfort, and wagering
2accessibility of race track patrons, to provide for the
3maximization of State revenue, and to generate increases in
4purse allotments to the horsemen, the Board shall require any
5licensee to staff the pari-mutuel department with adequate
6personnel.
7(Source: P.A. 97-1060, eff. 8-24-12.)
 
8    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
9    Sec. 15. (a) The Board shall, in its discretion, issue
10occupation licenses to horse owners, trainers, harness
11drivers, jockeys, agents, apprentices, grooms, stable foremen,
12exercise persons, veterinarians, valets, blacksmiths,
13concessionaires and others designated by the Board whose work,
14in whole or in part, is conducted upon facilities within the
15State. Such occupation licenses will be obtained prior to the
16persons engaging in their vocation upon such facilities. The
17Board shall not license pari-mutuel clerks, parking
18attendants, security guards and employees of concessionaires.
19No occupation license shall be required of any person who works
20at facilities within this State as a pari-mutuel clerk, parking
21attendant, security guard or as an employee of a
22concessionaire. Concessionaires of the Illinois State Fair and
23DuQuoin State Fair and employees of the Illinois Department of
24Agriculture shall not be required to obtain an occupation
25license by the Board.

 

 

09800SB1739ham004- 96 -LRB098 10559 AMC 56940 a

1    (b) Each application for an occupation license shall be on
2forms prescribed by the Board. Such license, when issued, shall
3be for the period ending December 31 of each year, except that
4the Board in its discretion may grant 3-year licenses. The
5application shall be accompanied by a fee of not more than $25
6per year or, in the case of 3-year occupation license
7applications, a fee of not more than $60. Each applicant shall
8set forth in the application his full name and address, and if
9he had been issued prior occupation licenses or has been
10licensed in any other state under any other name, such name,
11his age, whether or not a permit or license issued to him in
12any other state has been suspended or revoked and if so whether
13such suspension or revocation is in effect at the time of the
14application, and such other information as the Board may
15require. Fees for registration of stable names shall not exceed
16$50.00. Beginning on the date when any organization licensee
17begins conducting electronic gaming pursuant to an electronic
18gambling license issued under the Illinois Gambling Act, the
19fee for registration of stable names shall not exceed $150, and
20the application fee for an occupation license shall not exceed
21$75, per year or, in the case of a 3-year occupation license
22application, the fee shall not exceed $180.
23    (c) The Board may in its discretion refuse an occupation
24license to any person:
25        (1) who has been convicted of a crime;
26        (2) who is unqualified to perform the duties required

 

 

09800SB1739ham004- 97 -LRB098 10559 AMC 56940 a

1    of such applicant;
2        (3) who fails to disclose or states falsely any
3    information called for in the application;
4        (4) who has been found guilty of a violation of this
5    Act or of the rules and regulations of the Board; or
6        (5) whose license or permit has been suspended, revoked
7    or denied for just cause in any other state.
8    (d) The Board may suspend or revoke any occupation license:
9        (1) for violation of any of the provisions of this Act;
10    or
11        (2) for violation of any of the rules or regulations of
12    the Board; or
13        (3) for any cause which, if known to the Board, would
14    have justified the Board in refusing to issue such
15    occupation license; or
16        (4) for any other just cause.
17    (e)   Each applicant shall submit his or her fingerprints
18to the Department of State Police in the form and manner
19prescribed by the Department of State Police. These
20fingerprints shall be checked against the fingerprint records
21now and hereafter filed in the Department of State Police and
22Federal Bureau of Investigation criminal history records
23databases. The Department of State Police shall charge a fee
24for conducting the criminal history records check, which shall
25be deposited in the State Police Services Fund and shall not
26exceed the actual cost of the records check. The Department of

 

 

09800SB1739ham004- 98 -LRB098 10559 AMC 56940 a

1State Police shall furnish, pursuant to positive
2identification, records of conviction to the Board. Each
3applicant for licensure shall submit with his occupation
4license application, on forms provided by the Board, 2 sets of
5his fingerprints. All such applicants shall appear in person at
6the location designated by the Board for the purpose of
7submitting such sets of fingerprints; however, with the prior
8approval of a State steward, an applicant may have such sets of
9fingerprints taken by an official law enforcement agency and
10submitted to the Board.
11    (f) The Board may, in its discretion, issue an occupation
12license without submission of fingerprints if an applicant has
13been duly licensed in another recognized racing jurisdiction
14after submitting fingerprints that were subjected to a Federal
15Bureau of Investigation criminal history background check in
16that jurisdiction.
17    (g) Beginning on the date when any organization licensee
18begins conducting electronic gambling pursuant to an
19electronic gaming license issued under the Illinois Gambling
20Act, the Board may charge each applicant a reasonable
21non-refundable fee to defray the costs associated with the
22background investigation conducted by the Board. This fee shall
23be exclusive of any other fee or fees charged in connection
24with an application for and, if applicable, the issuance of, an
25electronic gaming license. If the costs of the investigation
26exceed the amount of the fee charged, the Board shall

 

 

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1immediately notify the applicant of the additional amount owed,
2payment of which must be submitted to the Board within 7 days
3after such notification. All information, records, interviews,
4reports, statements, memoranda, or other data supplied to or
5used by the Board in the course of its review or investigation
6of an applicant for a license or renewal under this Act shall
7be privileged, strictly confidential, and shall be used only
8for the purpose of evaluating an applicant for a license or a
9renewal. Such information, records, interviews, reports,
10statements, memoranda, or other data shall not be admissible as
11evidence, nor discoverable, in any action of any kind in any
12court or before any tribunal, board, agency, or person, except
13for any action deemed necessary by the Board.
14(Source: P.A. 93-418, eff. 1-1-04.)
 
15    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
16    Sec. 19. (a) No organization license may be granted to
17conduct a horse race meeting:
18        (1) except as provided in subsection (c) of Section 21
19    of this Act, to any person at any place within 35 miles of
20    any other place licensed by the Board to hold a race
21    meeting on the same date during the same hours, the mileage
22    measurement used in this subsection (a) shall be certified
23    to the Board by the Bureau of Systems and Services in the
24    Illinois Department of Transportation as the most commonly
25    used public way of vehicular travel;

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09800SB1739ham004- 104 -LRB098 10559 AMC 56940 a

1meets, live racing schedule, and designation of host track to
2the applicants and its approval or disapproval of each
3application. No announcement shall be considered binding until
4a formal order is executed by the Board, which shall be
5executed no later than October 15 of that prior year. Absent
6the agreement of the affected organization licensees, the Board
7shall not grant overlapping race meetings to 2 or more tracks
8that are within 100 miles of each other to conduct the
9thoroughbred racing.
10    (e-1) In awarding standardbred racing dates for calendar
11year 2015 and thereafter, the Board shall award at least 310
12racing days, and each organization licensee shall average at
13least 12 races for each racing day awarded. The Board shall
14have the discretion to allocate those racing days among
15organization licensees requesting standardbred racing dates.
16Once awarded by the Board, organization licensees awarded
17standardbred racing dates shall run at least 3,500 races in
18total during that calendar year. Standardbred racing conducted
19in Sangamon County shall not be considered races under this
20subsection (e-1).
21    (e-2) In awarding racing dates for calendar year 2015 and
22thereafter, the Board shall award thoroughbred racing days to
23Cook County organization licensees commensurate with these
24organization licensees' requirement that they shall run at
25least 1,950 thoroughbred races in the aggregate, so long as 2
26organization licensees are conducting electronic gaming

 

 

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1operations. Additionally, if the organization licensees that
2run thoroughbred races in Cook County are conducting electronic
3gaming operations, the Board shall increase the number of
4thoroughbred races to be run in Cook County in the aggregate to
5at least the following:
6        (i) 2,050 races in any year following the most recent
7    preceding complete calendar year when the combined
8    adjusted gross receipts of the electronic gaming licensees
9    operating at Cook County race tracks total in excess of
10    $200,000,000, but do not exceed $250,000,000;
11        (ii) 2,125 races in any year following the most recent
12    preceding complete calendar year when the combined
13    adjusted gross receipts of the electronic gaming licensees
14    operating at Cook County race tracks total in excess of
15    $250,000,000, but do not exceed $300,000,000;
16        (iii) 2,200 races in any year following the most recent
17    preceding complete calendar year when the combined
18    adjusted gross receipts of the electronic gaming licensees
19    operating at Cook County race tracks total in excess of
20    $300,000,000, but do not exceed $350,000,000;
21        (iv) 2,300 races in any year following the most recent
22    preceding complete calendar year when the combined
23    adjusted gross receipts of the electronic gaming licensees
24    operating at Cook County race tracks total in excess of
25    $350,000,000, but do not exceed $400,000,000;
26        (v) 2,375 races in any year following the most recent

 

 

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1    preceding complete calendar year when the combined
2    adjusted gross receipts of the electronic gaming licensees
3    operating at Cook County race tracks total in excess of
4    $400,000,000, but do not exceed $450,000,000;
5        (vi) 2,450 races in any year following the most recent
6    preceding complete calendar year when the combined
7    adjusted gross receipts of the electronic gaming licensees
8    operating at Cook County race tracks total in excess of
9    $450,000,000, but do not exceed $500,000,000;
10        (vii) 2,550 races in any year following the most recent
11    preceding complete calendar year when the combined
12    adjusted gross receipts of the electronic gaming licensees
13    operating at Cook County race tracks exceeds $500,000,000.
14    In awarding racing dates under this subsection (e-2), the
15Board shall have the discretion to allocate those thoroughbred
16racing dates among these Cook County organization licensees.
17    (e-3) Notwithstanding the provisions of Section 7.7 of the
18Illinois Gambling Act or any provision of this Act other than
19subsection (e-4), for each calendar year for which an
20electronic gaming licensee requests racing dates for a specific
21horse breed which results in a number of live races for that
22specific breed under its organization license that is less than
23the total number of live races for that specific breed which it
24conducted in 2011 for standardbred racing and in 2009 for
25thoroughbred racing at its race track facility, the electronic
26gaming licensee may not conduct electronic gaming for the

 

 

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1calendar year of such requested live races.
2    (e-4) The Board shall ensure that each organization
3licensee shall individually run a sufficient number of races
4per year to qualify for an electronic gaming license under this
5Act. The General Assembly finds that the minimum live racing
6guarantees contained in subsections (e-1) and (e-2) are in the
7best interest of the sport of horse racing, and that such
8guarantees may only be reduced in the limited circumstances
9described in this subsection. The Board may decrease the number
10of racing days without affecting an organization licensee's
11ability to conduct electronic gaming only if the Board
12determines, after notice and hearing, that:
13        (i) a decrease is necessary to maintain a sufficient
14    number of betting interests per race to ensure the
15    integrity of racing;
16        (ii) there are unsafe track conditions due to weather
17    or acts of God;
18        (iii) there is an agreement between an organization
19    licensee and the breed association that is applicable to
20    the involved live racing guarantee, such association
21    representing either the largest number of thoroughbred
22    owners and trainers or the largest number of standardbred
23    owners, trainers, and drivers who race horses at the
24    involved organization licensee's racing meeting, so long
25    as the agreement does not compromise the integrity of the
26    sport of horse racing; or

 

 

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

 

 

09800SB1739ham004- 109 -LRB098 10559 AMC 56940 a

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

 

 

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1    (e-10) The Illinois Administrative Procedure Act shall
2apply to administrative procedures of the Board under this Act
3for the granting of an organization license, except that (1)
4notwithstanding the provisions of subsection (b) of Section
510-40 of the Illinois Administrative Procedure Act regarding
6cross-examination, the Board may prescribe rules limiting the
7right of an applicant or participant in any proceeding to award
8an organization license to conduct cross-examination of
9witnesses at that proceeding where that cross-examination
10would unduly obstruct the timely award of an organization
11license under subsection (e) of Section 20 of this Act; (2) the
12provisions of Section 10-45 of the Illinois Administrative
13Procedure Act regarding proposals for decision are excluded
14under this Act; (3) notwithstanding the provisions of
15subsection (a) of Section 10-60 of the Illinois Administrative
16Procedure Act regarding ex parte communications, the Board may
17prescribe rules allowing ex parte communications with
18applicants or participants in a proceeding to award an
19organization license where conducting those communications
20would be in the best interest of racing, provided all those
21communications are made part of the record of that proceeding
22pursuant to subsection (c) of Section 10-60 of the Illinois
23Administrative Procedure Act; (4) the provisions of Section 14a
24of this Act and the rules of the Board promulgated under that
25Section shall apply instead of the provisions of Article 10 of
26the Illinois Administrative Procedure Act regarding

 

 

09800SB1739ham004- 111 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 112 -LRB098 10559 AMC 56940 a

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

 

 

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1    the form prescribed by the Board;
2        (2) pay to the Board an additional amount equal to $110
3    for each racing date awarded; and
4        (3) file with the Board the bonds required in Sections
5    21 and 25 at least 20 days prior to the first day of each
6    race meeting.
7Upon compliance with the provisions of paragraphs (1), (2), and
8(3) of this subsection (h), the applicant shall be issued an
9organization license.
10    If any applicant fails to comply with this Section or fails
11to pay the organization license fees herein provided, no
12organization license shall be issued to such applicant.
13(Source: P.A. 97-333, eff. 8-12-11.)
 
14    (230 ILCS 5/21)  (from Ch. 8, par. 37-21)
15    Sec. 21. (a) Applications for organization licenses must be
16filed with the Board at a time and place prescribed by the
17rules and regulations of the Board. The Board shall examine the
18applications within 21 days after the date allowed for filing
19with respect to their conformity with this Act and such rules
20and regulations as may be prescribed by the Board. If any
21application does not comply with this Act or the rules and
22regulations prescribed by the Board, such application may be
23rejected and an organization license refused to the applicant,
24or the Board may, within 21 days of the receipt of such
25application, advise the applicant of the deficiencies of the

 

 

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1application under the Act or the rules and regulations of the
2Board, and require the submittal of an amended application
3within a reasonable time determined by the Board; and upon
4submittal of the amended application by the applicant, the
5Board may consider the application consistent with the process
6described in subsection (e-5) of Section 20 of this Act. If it
7is found to be in compliance with this Act and the rules and
8regulations of the Board, the Board may then issue an
9organization license to such applicant.
10    (b) The Board may exercise discretion in granting racing
11dates to qualified applicants different from those requested by
12the applicants in their applications. However, if all eligible
13applicants for organization licenses whose tracks are located
14within 100 miles of each other execute and submit to the Board
15a written agreement among such applicants as to the award of
16racing dates, including where applicable racing programs, for
17up to 3 consecutive years, then subject to annual review of
18each applicant's compliance with Board rules and regulations,
19provisions of this Act and conditions contained in annual dates
20orders issued by the Board, the Board may grant such dates and
21programs to such applicants as so agreed by them if the Board
22determines that the grant of these racing dates is in the best
23interests of racing. The Board shall treat any such agreement
24as the agreement signatories' joint and several application for
25racing dates during the term of the agreement.
26    (c) Where 2 or more applicants propose to conduct horse

 

 

09800SB1739ham004- 115 -LRB098 10559 AMC 56940 a

1race meetings within 35 miles of each other, as certified to
2the Board under Section 19 (a) (1) of this Act, on conflicting
3dates, the Board may determine and grant the number of racing
4days to be awarded to the several applicants in accordance with
5the provisions of subsection (e-5) of Section 20 of this Act.
6    (d) (Blank).
7    (e) Prior to the issuance of an organization license, the
8applicant shall file with the Board a bond payable to the State
9of Illinois in the sum of $200,000, executed by the applicant
10and a surety company or companies authorized to do business in
11this State, and conditioned upon the payment by the
12organization licensee of all taxes due under Section 27, other
13monies due and payable under this Act, all purses due and
14payable, and that the organization licensee will upon
15presentation of the winning ticket or tickets distribute all
16sums due to the patrons of pari-mutuel pools. Beginning on the
17date when any organization licensee begins conducting
18electronic gaming pursuant to an electronic gaming license
19issued under the Illinois Gambling Act, the amount of the bond
20required under this subsection (e) shall be $500,000.
21    (f) Each organization license shall specify the person to
22whom it is issued, the dates upon which horse racing is
23permitted, and the location, place, track, or enclosure where
24the horse race meeting is to be held.
25    (g) Any person who owns one or more race tracks within the
26State may seek, in its own name, a separate organization

 

 

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1license for each race track.
2    (h) All racing conducted under such organization license is
3subject to this Act and to the rules and regulations from time
4to time prescribed by the Board, and every such organization
5license issued by the Board shall contain a recital to that
6effect.
7    (i) Each such organization licensee may provide that at
8least one race per day may be devoted to the racing of quarter
9horses, appaloosas, arabians, or paints.
10    (j) In acting on applications for organization licenses,
11the Board shall give weight to an organization license which
12has implemented a good faith affirmative action effort to
13recruit, train and upgrade minorities in all classifications
14within the organization license.
15(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
 
16    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
17    Sec. 24. (a) No license shall be issued to or held by an
18organization licensee unless all of its officers, directors,
19and holders of ownership interests of at least 5% are first
20approved by the Board. The Board shall not give approval of an
21organization license application to any person who has been
22convicted of or is under an indictment for a crime of moral
23turpitude or has violated any provision of the racing law of
24this State or any rules of the Board.
25    (b) An organization licensee must notify the Board within

 

 

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

 

 

09800SB1739ham004- 118 -LRB098 10559 AMC 56940 a

1nominee for public office if that payment or gift is prohibited
2under Article 10 of the State Officials and Employees Ethics
3Act.
4(Source: P.A. 89-16, eff. 5-30-95.)
 
5    (230 ILCS 5/25)  (from Ch. 8, par. 37-25)
6    Sec. 25. Admission charge; bond; fine.
7    (a) There shall be paid to the Board at such time or times
8as it shall prescribe, the sum of fifteen cents (15) for each
9person entering the grounds or enclosure of each organization
10licensee and inter-track wagering licensee upon a ticket of
11admission except as provided in subsection (g) of Section 27 of
12this Act. If tickets are issued for more than one day then the
13sum of fifteen cents (15) shall be paid for each person using
14such ticket on each day that the same shall be used. Provided,
15however, that no charge shall be made on tickets of admission
16issued to and in the name of directors, officers, agents or
17employees of the organization licensee, or inter-track
18wagering licensee, or to owners, trainers, jockeys, drivers and
19their employees or to any person or persons entering the
20grounds or enclosure for the transaction of business in
21connection with such race meeting. The organization licensee or
22inter-track wagering licensee may, if it desires, collect such
23amount from each ticket holder in addition to the amount or
24amounts charged for such ticket of admission. Beginning on the
25date when any organization licensee begins conducting

 

 

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1electronic gaming pursuant to an electronic gaming license
2issued under the Illinois Gambling Act, the admission charge
3imposed by this subsection (a) shall be 40 cents for each
4person entering the grounds or enclosure of each organization
5licensee and inter-track wagering licensee upon a ticket of
6admission, and if such tickets are issued for more than one
7day, 40 cents shall be paid for each person using such ticket
8on each day that the same shall be used.
9    (b) Accurate records and books shall at all times be kept
10and maintained by the organization licensees and inter-track
11wagering licensees showing the admission tickets issued and
12used on each racing day and the attendance thereat of each
13horse racing meeting. The Board or its duly authorized
14representative or representatives shall at all reasonable
15times have access to the admission records of any organization
16licensee and inter-track wagering licensee for the purpose of
17examining and checking the same and ascertaining whether or not
18the proper amount has been or is being paid the State of
19Illinois as herein provided. The Board shall also require,
20before issuing any license, that the licensee shall execute and
21deliver to it a bond, payable to the State of Illinois, in such
22sum as it shall determine, not, however, in excess of fifty
23thousand dollars ($50,000), with a surety or sureties to be
24approved by it, conditioned for the payment of all sums due and
25payable or collected by it under this Section upon admission
26fees received for any particular racing meetings. The Board may

 

 

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1also from time to time require sworn statements of the number
2or numbers of such admissions and may prescribe blanks upon
3which such reports shall be made. Any organization licensee or
4inter-track wagering licensee failing or refusing to pay the
5amount found to be due as herein provided, shall be deemed
6guilty of a business offense and upon conviction shall be
7punished by a fine of not more than five thousand dollars
8($5,000) in addition to the amount due from such organization
9licensee or inter-track wagering licensee as herein provided.
10All fines paid into court by an organization licensee or
11inter-track wagering licensee found guilty of violating this
12Section shall be transmitted and paid over by the clerk of the
13court to the Board. Beginning on the date when any organization
14licensee begins conducting electronic gaming pursuant to an
15electronic gaming license issued under the Illinois Gambling
16Act, any fine imposed pursuant to this subsection (b) shall not
17exceed $10,000.
18(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
19    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
20    Sec. 26. Wagering.
21    (a) Any licensee may conduct and supervise the pari-mutuel
22system of wagering, as defined in Section 3.12 of this Act, on
23horse races conducted by an Illinois organization licensee or
24conducted at a racetrack located in another state or country
25and televised in Illinois in accordance with subsection (g) of

 

 

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1Section 26 of this Act. Subject to the prior consent of the
2Board, licensees may supplement any pari-mutuel pool in order
3to guarantee a minimum distribution. Such pari-mutuel method of
4wagering shall not, under any circumstances if conducted under
5the provisions of this Act, be held or construed to be
6unlawful, other statutes of this State to the contrary
7notwithstanding. Subject to rules for advance wagering
8promulgated by the Board, any licensee may accept wagers in
9advance of the day of the race wagered upon occurs.
10    (b) Except for those gaming activities for which a license
11is obtained and authorized under the Illinois Lottery Act, the
12Charitable Games Act, the Raffles Act, or the Illinois Gambling
13Act, no No other method of betting, pool making, wagering or
14gambling shall be used or permitted by the licensee. Each
15licensee may retain, subject to the payment of all applicable
16taxes and purses, an amount not to exceed 17% of all money
17wagered under subsection (a) of this Section, except as may
18otherwise be permitted under this Act.
19    (b-5) An individual may place a wager under the pari-mutuel
20system from any licensed location authorized under this Act
21provided that wager is electronically recorded in the manner
22described in Section 3.12 of this Act. Any wager made
23electronically by an individual while physically on the
24premises of a licensee shall be deemed to have been made at the
25premises of that licensee.
26    (c) Until January 1, 2000, the sum held by any licensee for

 

 

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1payment of outstanding pari-mutuel tickets, if unclaimed prior
2to December 31 of the next year, shall be retained by the
3licensee for payment of such tickets until that date. Within 10
4days thereafter, the balance of such sum remaining unclaimed,
5less any uncashed supplements contributed by such licensee for
6the purpose of guaranteeing minimum distributions of any
7pari-mutuel pool, shall be paid to the Illinois Veterans'
8Rehabilitation Fund of the State treasury, except as provided
9in subsection (g) of Section 27 of this Act.
10    (c-5) Beginning January 1, 2000, the sum held by any
11licensee for payment of outstanding pari-mutuel tickets, if
12unclaimed prior to December 31 of the next year, shall be
13retained by the licensee for payment of such tickets until that
14date. Within 10 days thereafter, the balance of such sum
15remaining unclaimed, less any uncashed supplements contributed
16by such licensee for the purpose of guaranteeing minimum
17distributions of any pari-mutuel pool, shall be evenly
18distributed to the purse account of the organization licensee
19and the organization licensee.
20    (d) A pari-mutuel ticket shall be honored until December 31
21of the next calendar year, and the licensee shall pay the same
22and may charge the amount thereof against unpaid money
23similarly accumulated on account of pari-mutuel tickets not
24presented for payment.
25    (e) No licensee shall knowingly permit any minor, other
26than an employee of such licensee or an owner, trainer, jockey,

 

 

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1driver, or employee thereof, to be admitted during a racing
2program unless accompanied by a parent or guardian, or any
3minor to be a patron of the pari-mutuel system of wagering
4conducted or supervised by it. The admission of any
5unaccompanied minor, other than an employee of the licensee or
6an owner, trainer, jockey, driver, or employee thereof at a
7race track is a Class C misdemeanor.
8    (f) Notwithstanding the other provisions of this Act, an
9organization licensee may contract with an entity in another
10state or country to permit any legal wagering entity in another
11state or country to accept wagers solely within such other
12state or country on races conducted by the organization
13licensee in this State. Beginning January 1, 2000, these wagers
14shall not be subject to State taxation. Until January 1, 2000,
15when the out-of-State entity conducts a pari-mutuel pool
16separate from the organization licensee, a privilege tax equal
17to 7 1/2% of all monies received by the organization licensee
18from entities in other states or countries pursuant to such
19contracts is imposed on the organization licensee, and such
20privilege tax shall be remitted to the Department of Revenue
21within 48 hours of receipt of the moneys from the simulcast.
22When the out-of-State entity conducts a combined pari-mutuel
23pool with the organization licensee, the tax shall be 10% of
24all monies received by the organization licensee with 25% of
25the receipts from this 10% tax to be distributed to the county
26in which the race was conducted.

 

 

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

 

 

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

 

 

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1customers. The advance deposit wagering licensee shall not
2charge or collect any fee from purses for the placement of the
3advance deposit wagering terminals. The costs and expenses of
4the host track and non-host licensees associated with
5interstate simulcast wagering, other than the interstate
6commission fee, shall be borne by the host track and all
7non-host licensees incurring these costs. The interstate
8commission fee shall not exceed 5% of Illinois handle on the
9interstate simulcast race or races without prior approval of
10the Board. The Board shall promulgate rules under which it may
11permit interstate commission fees in excess of 5%. The
12interstate commission fee and other fees charged by the sending
13racetrack, including, but not limited to, satellite decoder
14fees, shall be uniformly applied to the host track and all
15non-host licensees.
16    Notwithstanding any other provision of this Act, until
17February 1, 2017, an organization licensee, with the consent of
18the horsemen association representing the largest number of
19owners, trainers, jockeys, or standardbred drivers who race
20horses at that organization licensee's racing meeting, may
21maintain a system whereby advance deposit wagering may take
22place or an organization licensee, with the consent of the
23horsemen association representing the largest number of
24owners, trainers, jockeys, or standardbred drivers who race
25horses at that organization licensee's racing meeting, may
26contract with another person to carry out a system of advance

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09800SB1739ham004- 135 -LRB098 10559 AMC 56940 a

1    a racetrack located in Madison County during any calendar
2    year beginning on or after January 1, 2002, all moneys
3    derived by that racetrack from simulcast wagering and
4    inter-track wagering that (1) are to be used for purses and
5    (2) are generated between the hours of 6:30 a.m. and 6:30
6    p.m. during that calendar year shall be deposited as
7    follows:
8            (A) If the licensee that conducts horse racing at
9        that racetrack requests from the Board at least as many
10        racing dates as were conducted in calendar year 2000,
11        80% shall be deposited into its standardbred purse
12        account; and
13            (B) Twenty percent shall be deposited into the
14        Illinois Colt Stakes Purse Distribution Fund. Moneys
15        deposited into the Illinois Colt Stakes Purse
16        Distribution Fund pursuant to this subparagraph (B)
17        shall be paid to Illinois conceived and foaled
18        thoroughbred breeders' programs and to thoroughbred
19        purses for races conducted at any county fairgrounds
20        for Illinois conceived and foaled horses at the
21        discretion of the Department of Agriculture, with the
22        advice and assistance of the Illinois Thoroughbred
23        Breeders Fund Advisory Board. The moneys deposited
24        into the Illinois Colt Stakes Purse Distribution Fund
25        pursuant to this subparagraph (B) shall be deposited
26        within 2 weeks after the day they were generated, shall

 

 

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

 

 

09800SB1739ham004- 137 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 138 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 139 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 140 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 141 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 142 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 143 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 144 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 145 -LRB098 10559 AMC 56940 a

1    application is made. In the case of any inter-track
2    wagering location licensee initially licensed after
3    December 31, 2013, inter-track wagering and simulcast
4    wagering shall not be conducted by those inter-track
5    wagering location licensees that are located outside the
6    City of Chicago at any location within 8 miles of any race
7    track at which a horse race meeting has been licensed in
8    the current year, unless the person having operating
9    control of such race track has given its written consent to
10    such inter-track wagering location licensees, which
11    consent must be filed with the Board at or prior to the
12    time application is made.
13        (8.2) Inter-track wagering or simulcast wagering shall
14    not be conducted by an inter-track wagering location
15    licensee at any location within 500 feet of an existing
16    church, an or existing elementary or secondary public
17    school, or an existing elementary or secondary private
18    school registered with or recognized by the State Board of
19    Education school, nor within 500 feet of the residences of
20    more than 50 registered voters without receiving written
21    permission from a majority of the registered voters at such
22    residences. Such written permission statements shall be
23    filed with the Board. The distance of 500 feet shall be
24    measured to the nearest part of any building used for
25    worship services, education programs, residential
26    purposes, or conducting inter-track wagering by an

 

 

09800SB1739ham004- 146 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 147 -LRB098 10559 AMC 56940 a

1    to the payment of the privilege taxes and the purses, an
2    amount not to exceed 17% of all money wagered. Each program
3    of racing conducted by each inter-track wagering licensee
4    or inter-track wagering location licensee shall be
5    considered a separate racing day for the purpose of
6    determining the daily handle and computing the privilege
7    tax or pari-mutuel tax on such daily handle as provided in
8    Section 27.
9        (10.1) Except as provided in subsection (g) of Section
10    27 of this Act, inter-track wagering location licensees
11    shall pay 1% of the pari-mutuel handle at each location to
12    the municipality in which such location is situated and 1%
13    of the pari-mutuel handle at each location to the county in
14    which such location is situated. In the event that an
15    inter-track wagering location licensee is situated in an
16    unincorporated area of a county, such licensee shall pay 2%
17    of the pari-mutuel handle from such location to such
18    county.
19        (10.2) Notwithstanding any other provision of this
20    Act, with respect to intertrack wagering at a race track
21    located in a county that has a population of more than
22    230,000 and that is bounded by the Mississippi River ("the
23    first race track"), or at a facility operated by an
24    inter-track wagering licensee or inter-track wagering
25    location licensee that derives its license from the
26    organization licensee that operates the first race track,

 

 

09800SB1739ham004- 148 -LRB098 10559 AMC 56940 a

1    on races conducted at the first race track or on races
2    conducted at another Illinois race track and
3    simultaneously televised to the first race track or to a
4    facility operated by an inter-track wagering licensee or
5    inter-track wagering location licensee that derives its
6    license from the organization licensee that operates the
7    first race track, those moneys shall be allocated as
8    follows:
9            (A) That portion of all moneys wagered on
10        standardbred racing that is required under this Act to
11        be paid to purses shall be paid to purses for
12        standardbred races.
13            (B) That portion of all moneys wagered on
14        thoroughbred racing that is required under this Act to
15        be paid to purses shall be paid to purses for
16        thoroughbred races.
17        (11) (A) After payment of the privilege or pari-mutuel
18    tax, any other applicable taxes, and the costs and expenses
19    in connection with the gathering, transmission, and
20    dissemination of all data necessary to the conduct of
21    inter-track wagering, the remainder of the monies retained
22    under either Section 26 or Section 26.2 of this Act by the
23    inter-track wagering licensee on inter-track wagering
24    shall be allocated with 50% to be split between the 2
25    participating licensees and 50% to purses, except that an
26    intertrack wagering licensee that derives its license from

 

 

09800SB1739ham004- 149 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 150 -LRB098 10559 AMC 56940 a

1    Section 27 of this Act, 1% of the pari-mutuel handle
2    wagered on inter-track wagering and simulcast wagering at
3    each inter-track wagering location licensee facility to
4    the Horse Racing Tax Allocation Fund, provided that, to the
5    extent the total amount collected and distributed to the
6    Horse Racing Tax Allocation Fund under this subsection (h)
7    during any calendar year exceeds the amount collected and
8    distributed to the Horse Racing Tax Allocation Fund during
9    calendar year 1994, that excess amount shall be
10    redistributed (I) to all inter-track wagering location
11    licensees, based on each licensee's pro-rata share of the
12    total handle from inter-track wagering and simulcast
13    wagering for all inter-track wagering location licensees
14    during the calendar year in which this provision is
15    applicable; then (II) the amounts redistributed to each
16    inter-track wagering location licensee as described in
17    subpart (I) shall be further redistributed as provided in
18    subparagraph (B) of paragraph (5) of subsection (g) of this
19    Section 26 provided first, that the shares of those
20    amounts, which are to be redistributed to the host track or
21    to purses at the host track under subparagraph (B) of
22    paragraph (5) of subsection (g) of this Section 26 shall be
23    redistributed based on each host track's pro rata share of
24    the total inter-track wagering and simulcast wagering
25    handle at all host tracks during the calendar year in
26    question, and second, that any amounts redistributed as

 

 

09800SB1739ham004- 151 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 152 -LRB098 10559 AMC 56940 a

1    county with a population in excess of 230,000 and that
2    borders the Mississippi River shall not divide any
3    remaining retention with the organization licensee.
4    Notwithstanding the provisions of clauses (ii) and (iv) of
5    this paragraph, in the case of the additional inter-track
6    wagering location licenses authorized under paragraph (1)
7    of this subsection (h) by this amendatory Act of 1991,
8    those licensees shall pay the following amounts as purses:
9    during the first 12 months the licensee is in operation,
10    5.25% of the pari-mutuel handle wagered at the location on
11    races; during the second 12 months, 5.25%; during the third
12    12 months, 5.75%; during the fourth 12 months, 6.25%; and
13    during the fifth 12 months and thereafter, 6.75%. The
14    following amounts shall be retained by the licensee to
15    satisfy all costs and expenses of conducting its wagering:
16    during the first 12 months the licensee is in operation,
17    8.25% of the pari-mutuel handle wagered at the location;
18    during the second 12 months, 8.25%; during the third 12
19    months, 7.75%; during the fourth 12 months, 7.25%; and
20    during the fifth 12 months and thereafter, 6.75%. For
21    additional intertrack wagering location licensees
22    authorized under this amendatory Act of 1995, purses for
23    the first 12 months the licensee is in operation shall be
24    5.75% of the pari-mutuel wagered at the location, purses
25    for the second 12 months the licensee is in operation shall
26    be 6.25%, and purses thereafter shall be 6.75%. For

 

 

09800SB1739ham004- 153 -LRB098 10559 AMC 56940 a

1    additional intertrack location licensees authorized under
2    this amendatory Act of 1995, the licensee shall be allowed
3    to retain to satisfy all costs and expenses: 7.75% of the
4    pari-mutuel handle wagered at the location during its first
5    12 months of operation, 7.25% during its second 12 months
6    of operation, and 6.75% thereafter.
7        (C) There is hereby created the Horse Racing Tax
8    Allocation Fund which shall remain in existence until
9    December 31, 1999. Moneys remaining in the Fund after
10    December 31, 1999 shall be paid into the General Revenue
11    Fund. Until January 1, 2000, all monies paid into the Horse
12    Racing Tax Allocation Fund pursuant to this paragraph (11)
13    by inter-track wagering location licensees located in park
14    districts of 500,000 population or less, or in a
15    municipality that is not included within any park district
16    but is included within a conservation district and is the
17    county seat of a county that (i) is contiguous to the state
18    of Indiana and (ii) has a 1990 population of 88,257
19    according to the United States Bureau of the Census, and
20    operating on May 1, 1994 shall be allocated by
21    appropriation as follows:
22            Two-sevenths to the Department of Agriculture.
23        Fifty percent of this two-sevenths shall be used to
24        promote the Illinois horse racing and breeding
25        industry, and shall be distributed by the Department of
26        Agriculture upon the advice of a 9-member committee

 

 

09800SB1739ham004- 154 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 155 -LRB098 10559 AMC 56940 a

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

 

 

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1        municipal recreation board and the municipality has a
2        1990 population of 9,302 according to the United States
3        Bureau of the Census); provided that the monies are
4        distributed to each park district or conservation
5        district or municipality that does not have a park
6        district in an amount equal to four-sevenths of the
7        amount collected by each inter-track wagering location
8        licensee within the park district or conservation
9        district or municipality for the Fund. Monies that were
10        paid into the Horse Racing Tax Allocation Fund before
11        the effective date of this amendatory Act of 1991 by an
12        inter-track wagering location licensee located in a
13        municipality that is not included within any park
14        district but is included within a conservation
15        district as provided in this paragraph shall, as soon
16        as practicable after the effective date of this
17        amendatory Act of 1991, be allocated and paid to that
18        conservation district as provided in this paragraph.
19        Any park district or municipality not maintaining a
20        museum may deposit the monies in the corporate fund of
21        the park district or municipality where the
22        inter-track wagering location is located, to be used
23        for general purposes; and
24            One-seventh to the Agricultural Premium Fund to be
25        used for distribution to agricultural home economics
26        extension councils in accordance with "An Act in

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09800SB1739ham004- 162 -LRB098 10559 AMC 56940 a

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

 

 

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1    racing day for the purpose of determining the daily handle
2    and computing the privilege or pari-mutuel tax on that
3    daily handle as provided in Sections 27 and 27.1. Such
4    agreements shall be approved by the Board before such
5    wagering may be conducted. In determining whether to grant
6    approval, the Board shall give due consideration to the
7    best interests of the public and of horse racing. The
8    provisions of paragraphs (1), (8), (8.1), and (8.2) of
9    subsection (h) of this Section which are not specified in
10    this paragraph (13) shall not apply to licensed race
11    meetings conducted by the Department of Agriculture at the
12    Illinois State Fair in Sangamon County or the DuQuoin State
13    Fair in Perry County, or to any wagering conducted on those
14    race meetings.
15    (i) Notwithstanding the other provisions of this Act, the
16conduct of wagering at wagering facilities is authorized on all
17days, except as limited by subsection (b) of Section 19 of this
18Act.
19(Source: P.A. 97-1060, eff. 8-24-12; 98-18, eff. 6-7-13;
2098-624, eff. 1-29-14.)
 
21    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
22    Sec. 27. (a) In addition to the organization license fee
23provided by this Act, until January 1, 2000, a graduated
24privilege tax is hereby imposed for conducting the pari-mutuel
25system of wagering permitted under this Act. Until January 1,

 

 

09800SB1739ham004- 164 -LRB098 10559 AMC 56940 a

12000, except as provided in subsection (g) of Section 27 of
2this Act, all of the breakage of each racing day held by any
3licensee in the State shall be paid to the State. Until January
41, 2000, such daily graduated privilege tax shall be paid by
5the licensee from the amount permitted to be retained under
6this Act. Until January 1, 2000, each day's graduated privilege
7tax, breakage, and Horse Racing Tax Allocation funds shall be
8remitted to the Department of Revenue within 48 hours after the
9close of the racing day upon which it is assessed or within
10such other time as the Board prescribes. The privilege tax
11hereby imposed, until January 1, 2000, shall be a flat tax at
12the rate of 2% of the daily pari-mutuel handle except as
13provided in Section 27.1.
14    In addition, every organization licensee, except as
15provided in Section 27.1 of this Act, which conducts multiple
16wagering shall pay, until January 1, 2000, as a privilege tax
17on multiple wagers an amount equal to 1.25% of all moneys
18wagered each day on such multiple wagers, plus an additional
19amount equal to 3.5% of the amount wagered each day on any
20other multiple wager which involves a single betting interest
21on 3 or more horses. The licensee shall remit the amount of
22such taxes to the Department of Revenue within 48 hours after
23the close of the racing day on which it is assessed or within
24such other time as the Board prescribes.
25    This subsection (a) shall be inoperative and of no force
26and effect on and after January 1, 2000.

 

 

09800SB1739ham004- 165 -LRB098 10559 AMC 56940 a

1    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
2at the rate of 1.5% of the daily pari-mutuel handle is imposed
3at all pari-mutuel wagering facilities and on advance deposit
4wagering from a location other than a wagering facility, except
5as otherwise provided for in this subsection (a-5). In addition
6to the pari-mutuel tax imposed on advance deposit wagering
7pursuant to this subsection (a-5), beginning on August 24, 2012
8(the effective date of Public Act 97-1060) until February 1,
92017, an additional pari-mutuel tax at the rate of 0.25% shall
10be imposed on advance deposit wagering. Until August 25, 2012,
11the additional 0.25% pari-mutuel tax imposed on advance deposit
12wagering by Public Act 96-972 shall be deposited into the
13Quarter Horse Purse Fund, which shall be created as a
14non-appropriated trust fund administered by the Board for
15grants to thoroughbred organization licensees for payment of
16purses for quarter horse races conducted by the organization
17licensee. Beginning on August 26, 2012, the additional 0.25%
18pari-mutuel tax imposed on advance deposit wagering shall be
19deposited into the Standardbred Purse Fund, which shall be
20created as a non-appropriated trust fund administered by the
21Board, for grants to the standardbred organization licensees
22for payment of purses for standardbred horse races conducted by
23the organization licensee. Thoroughbred organization licensees
24may petition the Board to conduct quarter horse racing and
25receive purse grants from the Quarter Horse Purse Fund. The
26Board shall have complete discretion in distributing the

 

 

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1Quarter Horse Purse Fund to the petitioning organization
2licensees. Beginning on July 26, 2010 (the effective date of
3Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
4the daily pari-mutuel handle is imposed at a pari-mutuel
5facility whose license is derived from a track located in a
6county that borders the Mississippi River and conducted live
7racing in the previous year. The pari-mutuel tax imposed by
8this subsection (a-5) shall be remitted to the Department of
9Revenue within 48 hours after the close of the racing day upon
10which it is assessed or within such other time as the Board
11prescribes.
12    (a-10) Beginning on the date when an organization licensee
13begins conducting electronic gaming pursuant to an electronic
14gaming license, the following pari-mutuel tax is imposed upon
15an organization licensee on Illinois races at the licensee's
16race track:
17        1.5% of the pari-mutuel handle at or below the average
18    daily pari-mutuel handle for 2011.
19        2% of the pari-mutuel handle above the average daily
20    pari-mutuel handle for 2011 up to 125% of the average daily
21    pari-mutuel handle for 2011.
22        2.5% of the pari-mutuel handle 125% or more above the
23    average daily pari-mutuel handle for 2011 up to 150% of the
24    average daily pari-mutuel handle for 2011.
25        3% of the pari-mutuel handle 150% or more above the
26    average daily pari-mutuel handle for 2011 up to 175% of the

 

 

09800SB1739ham004- 167 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 168 -LRB098 10559 AMC 56940 a

1shall post a bond in the sum of $500,000 to the State of
2Illinois. The bond shall be used to guarantee that the licensee
3faithfully makes the payments, keeps the books and records and
4makes reports, and conducts games of chance in conformity with
5this Act and the rules adopted by the Board. The bond shall not
6be canceled by a surety on less than 30 days' notice in writing
7to the Board. If a bond is canceled and the licensee fails to
8file a new bond with the Board in the required amount on or
9before the effective date of cancellation, the licensee's
10license shall be revoked. The total and aggregate liability of
11the surety on the bond is limited to the amount specified in
12the bond. Any licensee failing or refusing to pay the amount of
13any tax due under this Section shall be guilty of a business
14offense and upon conviction shall be fined not more than $5,000
15in addition to the amount found due as tax under this Section.
16Each day's violation shall constitute a separate offense. All
17fines paid into Court by a licensee hereunder shall be
18transmitted and paid over by the Clerk of the Court to the
19Board.
20    (e) No other license fee, privilege tax, excise tax, or
21racing fee, except as provided in this Act, shall be assessed
22or collected from any such licensee by the State.
23    (f) No other license fee, privilege tax, excise tax or
24racing fee shall be assessed or collected from any such
25licensee by units of local government except as provided in
26paragraph 10.1 of subsection (h) and subsection (f) of Section

 

 

09800SB1739ham004- 169 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 170 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 171 -LRB098 10559 AMC 56940 a

1    subsection (g) of Section 31 of this Act, before the amount
2    allocated to standardbred purses under item (i) is
3    allocated to standardbred organization licensees in the
4    succeeding allocation year.
5    To the extent the excess amount of taxes and fees to be
6collected and distributed to State and local governmental
7authorities exceeds $11 million, that excess amount shall be
8collected and distributed to State and local authorities as
9provided for under this Act.
10(Source: P.A. 97-1060, eff. 8-24-12; 98-18, eff. 6-7-13;
1198-624, eff. 1-29-14.)
 
12    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
13    Sec. 30. (a) The General Assembly declares that it is the
14policy of this State to encourage the breeding of thoroughbred
15horses in this State and the ownership of such horses by
16residents of this State in order to provide for: sufficient
17numbers of high quality thoroughbred horses to participate in
18thoroughbred racing meetings in this State, and to establish
19and preserve the agricultural and commercial benefits of such
20breeding and racing industries to the State of Illinois. It is
21the intent of the General Assembly to further this policy by
22the provisions of this Act.
23    (b) Each organization licensee conducting a thoroughbred
24racing meeting pursuant to this Act shall provide at least two
25races each day limited to Illinois conceived and foaled horses

 

 

09800SB1739ham004- 172 -LRB098 10559 AMC 56940 a

1or Illinois foaled horses or both. A minimum of 6 races shall
2be conducted each week limited to Illinois conceived and foaled
3or Illinois foaled horses or both. No horses shall be permitted
4to start in such races unless duly registered under the rules
5of the Department of Agriculture.
6    (c) Conditions of races under subsection (b) shall be
7commensurate with past performance, quality, and class of
8Illinois conceived and foaled and Illinois foaled horses
9available. If, however, sufficient competition cannot be had
10among horses of that class on any day, the races may, with
11consent of the Board, be eliminated for that day and substitute
12races provided.
13    (d) There is hereby created a special fund of the State
14Treasury to be known as the Illinois Thoroughbred Breeders
15Fund.
16    Beginning on the effective date of this amendatory Act of
17the 98th General Assembly, the Illinois Thoroughbred Breeders
18Fund shall become a non-appropriated trust fund held separately
19from State moneys. Expenditures from this Fund shall no longer
20be subject to appropriation.
21    Except as provided in subsection (g) of Section 27 of this
22Act, 8.5% of all the monies received by the State as privilege
23taxes on Thoroughbred racing meetings shall be paid into the
24Illinois Thoroughbred Breeders Fund.
25    Notwithstanding any provision of law to the contrary,
26amounts deposited into the Illinois Thoroughbred Breeders Fund

 

 

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1from revenues generated by electronic gaming after the
2effective date of this amendatory Act of the 98th General
3Assembly shall be in addition to tax and fee amounts paid under
4this Section for calendar year 2014 and thereafter.
5    (e) The Illinois Thoroughbred Breeders Fund shall be
6administered by the Department of Agriculture with the advice
7and assistance of the Advisory Board created in subsection (f)
8of this Section.
9    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
10shall consist of the Director of the Department of Agriculture,
11who shall serve as Chairman; a member of the Illinois Racing
12Board, designated by it; 2 representatives of the organization
13licensees conducting thoroughbred racing meetings, recommended
14by them; 2 representatives of the Illinois Thoroughbred
15Breeders and Owners Foundation, recommended by it; one
16representative and 2 representatives of the Horsemen's
17Benevolent Protective Association; and one representative from
18the Illinois Thoroughbred Horsemen's Association or any
19successor organization established in Illinois comprised of
20the largest number of owners and trainers, recommended by it,
21with one representative of the Horsemen's Benevolent and
22Protective Association to come from its Illinois Division, and
23one from its Chicago Division. Advisory Board members shall
24serve for 2 years commencing January 1 of each odd numbered
25year. If representatives of the organization licensees
26conducting thoroughbred racing meetings, the Illinois

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1by the organization licensee conducting the horse race meeting.
2Such sum shall be paid 50% from the organization licensee's
3account and 50% from the purse account of the licensee share of
4the money wagered as follows: 11 1/2% to the breeder of the
5winning horse and 1 1/2% 1% to the organization representing
6thoroughbred breeders and owners whose representative serves
7on the Illinois Thoroughbred Breeders Fund Advisory Board for
8verifying the amounts of breeders' awards earned, assuring
9their distribution in accordance with this Act, and servicing
10and promoting the Illinois thoroughbred horse racing industry.
11Except for that track that races in Madison County, beginning
12in the calendar year in which an organization licensee that is
13eligible to receive payment under paragraph (13) of subsection
14(g) of Section 26 of this Act begins to receive funds from
15electronic gaming, a sum equal to 21 1/2% of the first prize
16money of every purse won by an Illinois foaled or an Illinois
17conceived and foaled horse in races not limited to Illinois
18foaled horses or Illinois conceived and foaled horses, or both,
19shall be paid by the organization licensee conducting the horse
20race meeting. Such sum shall be paid 30% from the organization
21licensee's account and 70% from the purse account of the
22licensee as follows: 20% to the breeder of the winning horse
23and 1 1/2% to the organization representing thoroughbred
24breeders and owners whose representative serves on the Illinois
25Thoroughbred Breeders Fund Advisory Board for verifying the
26amounts of breeders' awards earned, ensuring their

 

 

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1distribution in accordance with this Act, and service and
2promotion of the Illinois thoroughbred horse racing industry.
3The organization representing thoroughbred breeders and owners
4shall cause all expenditures of monies received under this
5subsection (i) to be audited at least annually by a registered
6public accountant. The organization shall file copies of each
7annual audit with the Racing Board, the Clerk of the House of
8Representatives and the Secretary of the Senate, and shall make
9copies of each annual audit available to the public upon
10request and upon payment of the reasonable cost of photocopying
11the requested number of copies. Such payments shall not reduce
12any award to the owner of the horse or reduce the taxes payable
13under this Act. Upon completion of its racing meet, each
14organization licensee shall deliver to the organization
15representing thoroughbred breeders and owners whose
16representative serves on the Illinois Thoroughbred Breeders
17Fund Advisory Board a listing of all the Illinois foaled and
18the Illinois conceived and foaled horses which won breeders'
19awards and the amount of such breeders' awards under this
20subsection to verify accuracy of payments and assure proper
21distribution of breeders' awards in accordance with the
22provisions of this Act. Such payments shall be delivered by the
23organization licensee within 30 days of the end of each race
24meeting.
25    (j) A sum equal to 13% 12 1/2% of the first prize money won
26in each race limited to Illinois foaled horses or Illinois

 

 

09800SB1739ham004- 180 -LRB098 10559 AMC 56940 a

1conceived and foaled horses, or both, shall be paid in the
2following manner by the organization licensee conducting the
3horse race meeting, 50% from the organization licensee's
4account and 50% from the purse account of the licensee share of
5the money wagered: 11 1/2% to the breeders of the horses in
6each such race which are the official first, second, third and
7fourth finishers and 1 1/2% 1% to the organization representing
8thoroughbred breeders and owners whose representative serves
9on the Illinois Thoroughbred Breeders Fund Advisory Board for
10verifying the amounts of breeders' awards earned, assuring
11their proper distribution in accordance with this Act, and
12servicing and promoting the Illinois thoroughbred horse racing
13industry. The organization representing thoroughbred breeders
14and owners shall cause all expenditures of monies received
15under this subsection (j) to be audited at least annually by a
16registered public accountant. The organization shall file
17copies of each annual audit with the Racing Board, the Clerk of
18the House of Representatives and the Secretary of the Senate,
19and shall make copies of each annual audit available to the
20public upon request and upon payment of the reasonable cost of
21photocopying the requested number of copies.
22    The 11 1/2% paid to the breeders in accordance with this
23subsection shall be distributed as follows:
24        (1) 60% of such sum shall be paid to the breeder of the
25    horse which finishes in the official first position;
26        (2) 20% of such sum shall be paid to the breeder of the

 

 

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1    horse which finishes in the official second position;
2        (3) 15% of such sum shall be paid to the breeder of the
3    horse which finishes in the official third position; and
4        (4) 5% of such sum shall be paid to the breeder of the
5    horse which finishes in the official fourth position.
6    Such payments shall not reduce any award to the owners of a
7horse or reduce the taxes payable under this Act. Upon
8completion of its racing meet, each organization licensee shall
9deliver to the organization representing thoroughbred breeders
10and owners whose representative serves on the Illinois
11Thoroughbred Breeders Fund Advisory Board a listing of all the
12Illinois foaled and the Illinois conceived and foaled horses
13which won breeders' awards and the amount of such breeders'
14awards in accordance with the provisions of this Act. Such
15payments shall be delivered by the organization licensee within
1630 days of the end of each race meeting.
17    (k) The term "breeder", as used herein, means the owner of
18the mare at the time the foal is dropped. An "Illinois foaled
19horse" is a foal dropped by a mare which enters this State on
20or before December 1, in the year in which the horse is bred,
21provided the mare remains continuously in this State until its
22foal is born. An "Illinois foaled horse" also means a foal born
23of a mare in the same year as the mare enters this State on or
24before March 1, and remains in this State at least 30 days
25after foaling, is bred back during the season of the foaling to
26an Illinois Registered Stallion (unless a veterinarian

 

 

09800SB1739ham004- 182 -LRB098 10559 AMC 56940 a

1certifies that the mare should not be bred for health reasons),
2and is not bred to a stallion standing in any other state
3during the season of foaling. An "Illinois foaled horse" also
4means a foal born in Illinois of a mare purchased at public
5auction subsequent to the mare entering this State on or before
6March 1 prior to February 1 of the foaling year providing the
7mare is owned solely by one or more Illinois residents or an
8Illinois entity that is entirely owned by one or more Illinois
9residents.
10    (l) The Department of Agriculture shall, by rule, with the
11advice and assistance of the Illinois Thoroughbred Breeders
12Fund Advisory Board:
13        (1) Qualify stallions for Illinois breeding; such
14    stallions to stand for service within the State of Illinois
15    at the time of a foal's conception. Such stallion must not
16    stand for service at any place outside the State of
17    Illinois during the calendar year in which the foal is
18    conceived. The Department of Agriculture may assess and
19    collect an application fee of up to $500 fees for the
20    registration of Illinois-eligible stallions. All fees
21    collected are to be held in trust accounts for the purposes
22    set forth in this Act and in accordance with Section 205-15
23    of the Department of Agriculture Law paid into the Illinois
24    Thoroughbred Breeders Fund.
25        (2) Provide for the registration of Illinois conceived
26    and foaled horses and Illinois foaled horses. No such horse

 

 

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1    shall compete in the races limited to Illinois conceived
2    and foaled horses or Illinois foaled horses or both unless
3    registered with the Department of Agriculture. The
4    Department of Agriculture may prescribe such forms as are
5    necessary to determine the eligibility of such horses. The
6    Department of Agriculture may assess and collect
7    application fees for the registration of Illinois-eligible
8    foals. All fees collected are to be held in trust accounts
9    for the purposes set forth in this Act and in accordance
10    with Section 205-15 of the Department of Agriculture Law
11    paid into the Illinois Thoroughbred Breeders Fund. No
12    person shall knowingly prepare or cause preparation of an
13    application for registration of such foals containing
14    false information.
15    (m) The Department of Agriculture, with the advice and
16assistance of the Illinois Thoroughbred Breeders Fund Advisory
17Board, shall provide that certain races limited to Illinois
18conceived and foaled and Illinois foaled horses be stakes races
19and determine the total amount of stakes and awards to be paid
20to the owners of the winning horses in such races.
21    In determining the stakes races and the amount of awards
22for such races, the Department of Agriculture shall consider
23factors, including but not limited to, the amount of money
24appropriated for the Illinois Thoroughbred Breeders Fund
25program, organization licensees' contributions, availability
26of stakes caliber horses as demonstrated by past performances,

 

 

09800SB1739ham004- 184 -LRB098 10559 AMC 56940 a

1whether the race can be coordinated into the proposed racing
2dates within organization licensees' racing dates, opportunity
3for colts and fillies and various age groups to race, public
4wagering on such races, and the previous racing schedule.
5    (n) The Board and the organizational licensee shall notify
6the Department of the conditions and minimum purses for races
7limited to Illinois conceived and foaled and Illinois foaled
8horses conducted for each organizational licensee conducting a
9thoroughbred racing meeting. The Department of Agriculture
10with the advice and assistance of the Illinois Thoroughbred
11Breeders Fund Advisory Board may allocate monies for purse
12supplements for such races. In determining whether to allocate
13money and the amount, the Department of Agriculture shall
14consider factors, including but not limited to, the amount of
15money appropriated for the Illinois Thoroughbred Breeders Fund
16program, the number of races that may occur, and the
17organizational licensee's purse structure.
18    (o) In order to improve the breeding quality of
19thoroughbred horses in the State, the General Assembly
20recognizes that existing provisions of this Section to
21encourage such quality breeding need to be revised and
22strengthened. As such, a Thoroughbred Breeder's Program Task
23Force is to be appointed by the Governor by September 1, 1999
24to make recommendations to the General Assembly by no later
25than March 1, 2000. This task force is to be composed of 2
26representatives from the Illinois Thoroughbred Breeders and

 

 

09800SB1739ham004- 185 -LRB098 10559 AMC 56940 a

1Owners Foundation, 2 from the Illinois Thoroughbred Horsemen's
2Association, 3 from Illinois race tracks operating
3thoroughbred race meets for an average of at least 30 days in
4the past 3 years, the Director of Agriculture, the Executive
5Director of the Racing Board, who shall serve as Chairman.
6(Source: P.A. 91-40, eff. 6-25-99.)
 
7    (230 ILCS 5/30.5)
8    Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
9    (a) The General Assembly declares that it is the policy of
10this State to encourage the breeding of racing quarter horses
11in this State and the ownership of such horses by residents of
12this State in order to provide for sufficient numbers of high
13quality racing quarter horses in this State and to establish
14and preserve the agricultural and commercial benefits of such
15breeding and racing industries to the State of Illinois. It is
16the intent of the General Assembly to further this policy by
17the provisions of this Act.
18    (b) There is hereby created a non-appropriated trust
19special fund in the State Treasury to be known as the Illinois
20Racing Quarter Horse Breeders Fund, which is held separately
21from State moneys. Except as provided in subsection (g) of
22Section 27 of this Act, 8.5% of all the moneys received by the
23State as pari-mutuel taxes on quarter horse racing shall be
24paid into the Illinois Racing Quarter Horse Breeders Fund. The
25Illinois Racing Quarter Horse Breeders Fund shall not be

 

 

09800SB1739ham004- 186 -LRB098 10559 AMC 56940 a

1subject to administrative charges or chargebacks, including,
2but not limited to, those authorized under Section 8h of the
3State Finance Act.
4    (c) The Illinois Racing Quarter Horse Breeders Fund shall
5be administered by the Department of Agriculture with the
6advice and assistance of the Advisory Board created in
7subsection (d) of this Section.
8    (d) The Illinois Racing Quarter Horse Breeders Fund
9Advisory Board shall consist of the Director of the Department
10of Agriculture, who shall serve as Chairman; a member of the
11Illinois Racing Board, designated by it; one representative of
12the organization licensees conducting pari-mutuel quarter
13horse racing meetings, recommended by them; 2 representatives
14of the Illinois Running Quarter Horse Association, recommended
15by it; and the Superintendent of Fairs and Promotions from the
16Department of Agriculture. Advisory Board members shall serve
17for 2 years commencing January 1 of each odd numbered year. If
18representatives have not been recommended by January 1 of each
19odd numbered year, the Director of the Department of
20Agriculture may make an appointment for the organization
21failing to so recommend a member of the Advisory Board.
22Advisory Board members shall receive no compensation for their
23services as members but may be reimbursed for all actual and
24necessary expenses and disbursements incurred in the execution
25of their official duties.
26    (e) Moneys in No moneys shall be expended from the Illinois

 

 

09800SB1739ham004- 187 -LRB098 10559 AMC 56940 a

1Racing Quarter Horse Breeders Fund except as appropriated by
2the General Assembly. Moneys appropriated from the Illinois
3Racing Quarter Horse Breeders Fund shall be expended by the
4Department of Agriculture, with the advice and assistance of
5the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
6for the following purposes only:
7        (1) To provide stakes and awards to be paid to the
8    owners of the winning horses in certain races. This
9    provision is limited to Illinois conceived and foaled
10    horses.
11        (2) To provide an award to the owner or owners of an
12    Illinois conceived and foaled horse that wins a race when
13    pari-mutuel wagering is conducted; providing the race is
14    not restricted to Illinois conceived and foaled horses.
15        (3) To provide purse money for an Illinois stallion
16    stakes program.
17        (4) To provide for purses to be distributed for the
18    running of races during the Illinois State Fair and the
19    DuQuoin State Fair exclusively for quarter horses
20    conceived and foaled in Illinois.
21        (5) To provide for purses to be distributed for the
22    running of races at Illinois county fairs exclusively for
23    quarter horses conceived and foaled in Illinois.
24        (6) To provide for purses to be distributed for running
25    races exclusively for quarter horses conceived and foaled
26    in Illinois at locations in Illinois determined by the

 

 

09800SB1739ham004- 188 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 189 -LRB098 10559 AMC 56940 a

1    paid into the Illinois Racing Quarter Horse Breeders Fund.
2        (2) Provide for the registration of Illinois conceived
3    and foaled horses. No such horse shall compete in the races
4    limited to Illinois conceived and foaled horses unless it
5    is registered with the Department of Agriculture. The
6    Department of Agriculture may prescribe such forms as are
7    necessary to determine the eligibility of such horses. The
8    Department of Agriculture may assess and collect
9    application fees for the registration of Illinois-eligible
10    foals. All fees collected are to be paid into the Illinois
11    Racing Quarter Horse Breeders Fund. No person shall
12    knowingly prepare or cause preparation of an application
13    for registration of such foals that contains false
14    information.
15    (g) The Department of Agriculture, with the advice and
16assistance of the Illinois Racing Quarter Horse Breeders Fund
17Advisory Board, shall provide that certain races limited to
18Illinois conceived and foaled be stakes races and determine the
19total amount of stakes and awards to be paid to the owners of
20the winning horses in such races.
21(Source: P.A. 98-463, eff. 8-16-13.)
 
22    (230 ILCS 5/31)  (from Ch. 8, par. 37-31)
23    Sec. 31. (a) The General Assembly declares that it is the
24policy of this State to encourage the breeding of standardbred
25horses in this State and the ownership of such horses by

 

 

09800SB1739ham004- 190 -LRB098 10559 AMC 56940 a

1residents of this State in order to provide for: sufficient
2numbers of high quality standardbred horses to participate in
3harness racing meetings in this State, and to establish and
4preserve 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 Section of this Act.
8    (b) Each organization licensee conducting a harness racing
9meeting pursuant to this Act shall provide for at least two
10races each race program limited to Illinois conceived and
11foaled horses. A minimum of 6 races shall be conducted each
12week limited to Illinois conceived and foaled horses. No horses
13shall be permitted to start in such races unless duly
14registered under the rules of the Department of Agriculture.
15    (b-5) Organization licensees, not including the Illinois
16State Fair or the DuQuoin State Fair, shall provide stake races
17and early closer races for Illinois conceived and foaled horses
18so that purses distributed for such races shall be no less than
1917% of total purses distributed for harness racing in that
20calendar year in addition to any stakes payments and starting
21fees contributed by horse owners.
22    (b-10) Each organization licensee conducting a harness
23racing meeting pursuant to this Act shall provide an owner
24award to be paid from the purse account equal to 25% of the
25amount earned by Illinois conceived and foaled horses in races
26that are not restricted to Illinois conceived and foaled

 

 

09800SB1739ham004- 191 -LRB098 10559 AMC 56940 a

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

 

 

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1Breeders Association, recommended by it; a representative of
2the Illinois Association of Agricultural Fairs, recommended by
3it, such representative to be from a fair at which Illinois
4conceived and foaled racing is conducted; a representative of
5the organization licensees conducting harness racing meetings,
6recommended by them and a representative of the Illinois
7Harness Horsemen's Association, recommended by it. Advisory
8Board members shall serve for 2 years commencing January 1, of
9each odd numbered year. If representatives of the Illinois
10Standardbred Owners and Breeders Associations, the Illinois
11Association of Agricultural Fairs, the Illinois Harness
12Horsemen's Association, and the organization licensees
13conducting harness racing meetings have not been recommended by
14January 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
22Standardbred Breeders Fund except as appropriated by the
23General Assembly. Monies appropriated from the Illinois
24Standardbred Breeders Fund shall be expended by the Department
25of Agriculture, with the assistance and advice of the Illinois
26Standardbred Breeders Fund Advisory Board for the following

 

 

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

 

 

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1    of the Illinois Standardbred Breeders Fund.
2        8. To promote the sport of harness racing, including
3    grants up to a maximum of $7,500 per fair per year for
4    conducting pari-mutuel wagering during the advertised
5    dates of a county fair.
6        9. To pay up to $50,000 annually for the Department of
7    Agriculture to conduct drug testing at county fairs racing
8    standardbred horses.
9        10. To pay up to $100,000 annually for distribution to
10    Illinois county fairs to supplement premiums offered in
11    junior classes.
12    (h) (Blank) Whenever the Governor finds that the amount in
13the Illinois Standardbred Breeders Fund is more than the total
14of the outstanding appropriations from such fund, the Governor
15shall notify the State Comptroller and the State Treasurer of
16such fact. The Comptroller and the State Treasurer, upon
17receipt of such notification, shall transfer such excess amount
18from the Illinois Standardbred Breeders Fund to the General
19Revenue Fund.
20    (i) A sum equal to 13% 12 1/2% of the first prize money of
21the gross every purse won by an Illinois conceived and foaled
22horse shall be paid 50% by the organization licensee conducting
23the horse race meeting to the breeder of such winning horse
24from the organization licensee's account and 50% from the purse
25account of the licensee share of the money wagered. Such
26payment shall not reduce any award to the owner of the horse or

 

 

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1reduce the taxes payable under this Act. Such payment shall be
2delivered by the organization licensee at the end of each
3quarter race meeting.
4    (j) The Department of Agriculture shall, by rule, with the
5assistance and advice of the Illinois Standardbred Breeders
6Fund Advisory Board:
7        1. Qualify stallions for Illinois Standardbred
8    Breeders Fund breeding; such stallion shall be owned by a
9    resident of the State of Illinois or by an Illinois
10    corporation all of whose shareholders, directors, officers
11    and incorporators are residents of the State of Illinois.
12    Such stallion shall stand for service at and within the
13    State of Illinois at the time of a foal's conception, and
14    such stallion must not stand for service at any place, nor
15    may semen from such stallion be transported, outside the
16    State of Illinois during that calendar year in which the
17    foal is conceived and that the owner of the stallion was
18    for the 12 months prior, a resident of Illinois. Foals
19    conceived outside the State of Illinois from shipped semen
20    from a stallion qualified for breeders' awards under this
21    Section are not eligible to participate in the Illinois
22    conceived and foaled program. The articles of agreement of
23    any partnership, joint venture, limited partnership,
24    syndicate, association or corporation and any bylaws and
25    stock certificates must contain a restriction that
26    provides that the ownership or transfer of interest by any

 

 

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1    one of the persons a party to the agreement can only be
2    made to a person who qualifies as an Illinois resident.
3        2. Provide for the registration of Illinois conceived
4    and foaled horses and no such horse shall compete in the
5    races limited to Illinois conceived and foaled horses
6    unless registered with the Department of Agriculture. The
7    Department of Agriculture may prescribe such forms as may
8    be necessary to determine the eligibility of such horses.
9    No person shall knowingly prepare or cause preparation of
10    an application for registration of such foals containing
11    false information. A mare (dam) must be in the state at
12    least 180 30 days prior to foaling and or remain in the
13    State at least 30 days after at the time of foaling.
14    Beginning with the 1996 breeding season and for foals of
15    1997 and thereafter, a foal conceived in the State of
16    Illinois by transported fresh semen may be eligible for
17    Illinois conceived and foaled registration provided all
18    breeding and foaling requirements are met. The stallion
19    must be qualified for Illinois Standardbred Breeders Fund
20    breeding at the time of conception and the mare must be
21    inseminated within the State of Illinois. The foal must be
22    dropped in Illinois and properly registered with the
23    Department of Agriculture in accordance with this Act.
24        3. Provide that at least a 5 day racing program shall
25    be conducted at the State Fair each year, which program
26    shall include at least the following races limited to

 

 

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1    Illinois conceived and foaled horses: (a) a two year old
2    Trot and Pace, and Filly Division of each; (b) a three year
3    old Trot and Pace, and Filly Division of each; (c) an aged
4    Trot and Pace, and Mare Division of each.
5        4. Provide for the payment of nominating, sustaining
6    and starting fees for races promoting the sport of harness
7    racing and for the races to be conducted at the State Fair
8    as provided in subsection (j) 3 of this Section provided
9    that the nominating, sustaining and starting payment
10    required from an entrant shall not exceed 2% of the purse
11    of such race. All nominating, sustaining and starting
12    payments shall be held for the benefit of entrants and
13    shall be paid out as part of the respective purses for such
14    races. Nominating, sustaining and starting fees shall be
15    held in trust accounts for the purposes as set forth in
16    this Act and in accordance with Section 205-15 of the
17    Department of Agriculture Law (20 ILCS 205/205-15).
18        5. Provide for the registration with the Department of
19    Agriculture of Colt Associations or county fairs desiring
20    to sponsor races at county fairs.
21        6. Provide for the promotion of producing standardbred
22    racehorses by providing a bonus award program for owners of
23    2-year-old horses that win multiple major stakes races that
24    are limited to Illinois conceived and foaled horses.
25    (k) The Department of Agriculture, with the advice and
26assistance of the Illinois Standardbred Breeders Fund Advisory

 

 

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1Board, may allocate monies for purse supplements for such
2races. In determining whether to allocate money and the amount,
3the Department of Agriculture shall consider factors,
4including but not limited to, the amount of money appropriated
5for the Illinois Standardbred Breeders Fund program, the number
6of races that may occur, and an organizational licensee's purse
7structure. The organizational licensee shall notify the
8Department of Agriculture of the conditions and minimum purses
9for races limited to Illinois conceived and foaled horses to be
10conducted by each organizational licensee conducting a harness
11racing meeting for which purse supplements have been
12negotiated.
13    (l) All races held at county fairs and the State Fair which
14receive funds from the Illinois Standardbred Breeders Fund
15shall be conducted in accordance with the rules of the United
16States Trotting Association unless otherwise modified by the
17Department of Agriculture.
18    (m) At all standardbred race meetings held or conducted
19under authority of a license granted by the Board, and at all
20standardbred races held at county fairs which are approved by
21the Department of Agriculture or at the Illinois or DuQuoin
22State Fairs, no one shall jog, train, warm up or drive a
23standardbred horse unless he or she is wearing a protective
24safety helmet, with the chin strap fastened and in place, which
25meets the standards and requirements as set forth in the 1984
26Standard for Protective Headgear for Use in Harness Racing and

 

 

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1Other Equestrian Sports published by the Snell Memorial
2Foundation, or any standards and requirements for headgear the
3Illinois Racing Board may approve. Any other standards and
4requirements so approved by the Board shall equal or exceed
5those published by the Snell Memorial Foundation. Any
6equestrian helmet bearing the Snell label shall be deemed to
7have met those standards and requirements.
8(Source: P.A. 91-239, eff. 1-1-00.)
 
9    (230 ILCS 5/31.1)  (from Ch. 8, par. 37-31.1)
10    Sec. 31.1. (a) Organization licensees collectively shall
11contribute annually to charity the sum of $1,000,000 $750,000
12to non-profit organizations that provide medical and family,
13counseling, and similar services to persons who reside or work
14on the backstretch of Illinois racetracks. These contributions
15shall be collected as follows: (i) no later than July 1st of
16each year the Board shall assess each organization licensee,
17except those tracks which are not within 100 miles of each
18other which tracks shall pay $40,000 $30,000 annually apiece
19into the Board charity fund, that amount which equals $920,000
20$690,000 multiplied by the amount of pari-mutuel wagering
21handled by the organization licensee in the year preceding
22assessment and divided by the total pari-mutuel wagering
23handled by all Illinois organization licensees, except those
24tracks which are not within 100 miles of each other, in the
25year preceding assessment; (ii) notice of the assessed

 

 

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1contribution shall be mailed to each organization licensee;
2(iii) within thirty days of its receipt of such notice, each
3organization licensee shall remit the assessed contribution to
4the Board. If an organization licensee wilfully fails to so
5remit the contribution, the Board may revoke its license to
6conduct horse racing.
7    (b) No later than October 1st of each year, any qualified
8charitable organization seeking an allotment of contributed
9funds shall submit to the Board an application for those funds,
10using the Board's approved form. No later than December 31st of
11each year, the Board shall distribute all such amounts
12collected that year to such charitable organization
13applicants.
14(Source: P.A. 87-110.)
 
15    (230 ILCS 5/32.1)
16    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
17real estate equalization.
18    (a) In order to encourage new investment in Illinois
19racetrack facilities and mitigate differing real estate tax
20burdens among all racetracks, the licensees affiliated or
21associated with each racetrack that has been awarded live
22racing dates in the current year shall receive an immediate
23pari-mutuel tax credit in an amount equal to the greater of (i)
2450% of the amount of the real estate taxes paid in the prior
25year attributable to that racetrack, or (ii) the amount by

 

 

09800SB1739ham004- 201 -LRB098 10559 AMC 56940 a

1which the real estate taxes paid in the prior year attributable
2to that racetrack exceeds 60% of the average real estate taxes
3paid in the prior year for all racetracks awarded live horse
4racing meets in the current year.
5    Each year, regardless of whether the organization licensee
6conducted live racing in the year of certification, the Board
7shall certify in writing, prior to December 31, the real estate
8taxes paid in that year for each racetrack and the amount of
9the pari-mutuel tax credit that each organization licensee,
10intertrack wagering licensee, and intertrack wagering location
11licensee that derives its license from such racetrack is
12entitled in the succeeding calendar year. The real estate taxes
13considered under this Section for any racetrack shall be those
14taxes on the real estate parcels and related facilities used to
15conduct a horse race meeting and inter-track wagering at such
16racetrack under this Act. In no event shall the amount of the
17tax credit under this Section exceed the amount of pari-mutuel
18taxes otherwise calculated under this Act. The amount of the
19tax credit under this Section shall be retained by each
20licensee and shall not be subject to any reallocation or
21further distribution under this Act. The Board may promulgate
22emergency rules to implement this Section.
23    (b) Beginning on January 1 following the calendar year
24during which an organization licensee begins conducting
25electronic gaming operations pursuant to an electronic gaming
26license issued under the Illinois Gambling Act, the

 

 

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1organization licensee shall be ineligible to receive a tax
2credit under this Section.
3(Source: P.A. 91-40, eff. 6-25-99.)
 
4    (230 ILCS 5/34.3 new)
5    Sec. 34.3. Drug testing. The Illinois Racing Board and the
6Department of Agriculture shall jointly establish a program for
7the purpose of conducting drug testing of horses at county
8fairs and shall adopt any rules necessary for enforcement of
9the program. The rules shall include appropriate penalties for
10violations.
 
11    (230 ILCS 5/36)   (from Ch. 8, par. 37-36)
12    Sec. 36. (a) Whoever administers or conspires to administer
13to any horse a hypnotic, narcotic, stimulant, depressant or any
14chemical substance which may affect the speed of a horse at any
15time in any race where the purse or any part of the purse is
16made of money authorized by any Section of this Act, except
17those chemical substances permitted by ruling of the Board,
18internally, externally or by hypodermic method in a race or
19prior thereto, or whoever knowingly enters a horse in any race
20within a period of 24 hours after any hypnotic, narcotic,
21stimulant, depressant or any other chemical substance which may
22affect the speed of a horse at any time, except those chemical
23substances permitted by ruling of the Board, has been
24administered to such horse either internally or externally or

 

 

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1by hypodermic method for the purpose of increasing or retarding
2the speed of such horse shall be guilty of a Class 4 felony.
3The Board shall suspend or revoke such violator's license.
4    (b) The term "hypnotic" as used in this Section includes
5all barbituric acid preparations and derivatives.
6    (c) The term "narcotic" as used in this Section includes
7opium and all its alkaloids, salts, preparations and
8derivatives, cocaine and all its salts, preparations and
9derivatives and substitutes.
10    (d) The provisions of this Section 36 and the treatment
11authorized herein apply to horses entered in and competing in
12race meetings as defined in Section 3.07 of this Act and to
13horses entered in and competing at any county fair.
14(Source: P.A. 79-1185.)
 
15    (230 ILCS 5/39.2 new)
16    Sec. 39.2. Prohibition of political contributions from
17certain licensees and applicants.
18    (a) The General Assembly has a compelling interest in
19protecting the integrity of both the electoral process and the
20legislative process by preventing corruption and the
21appearance of corruption which may arise through permitting
22certain political campaign contributions by certain persons
23involved in the horse racing industry and regulated by the
24State. Unlike most other regulated industries, horse racing is
25especially susceptible to corruption and potential criminal

 

 

09800SB1739ham004- 204 -LRB098 10559 AMC 56940 a

1influence. In Illinois, only licensed horse racing is legal and
2all other such activities are strictly prohibited. Given these
3circumstances, it is imperative to eliminate any potential
4corrupt influence in the horse racing industry and the
5electoral process.
6    Banning political campaign contributions by certain
7persons subject to this Section to State officeholders and
8candidates for such offices and to county and municipal
9officeholders and candidates for such offices in counties and
10municipalities that receive financial benefits from horse
11racing is necessary to prevent corruption and the appearance of
12corruption that may arise when political campaign
13contributions and horse racing that is regulated by the State
14and that confers benefits on counties and municipalities are
15intermingled.
16    (b) As used in this Section:
17    "Affiliated entity" means (i) any corporate parent and each
18operating subsidiary of the business entity applying for or
19holding a license, (ii) each operating subsidiary of the
20corporate parent of the business entity applying for or holding
21a license, (iii) any organization recognized by the United
22States Internal Revenue Service as a tax-exempt organization
23described in Section 501(c) of the Internal Revenue Code of
241986 (or any successor provision of federal tax law)
25established by one or more business entities seeking or holding
26a license, any affiliated entity of such business entity, or

 

 

09800SB1739ham004- 205 -LRB098 10559 AMC 56940 a

1any affiliated person of such business entity, and (iv) any
2political committee for which the business entity applying for
3or holding a license, or any 501(c) organization described in
4item (iii) related to that business entity, is the sponsoring
5entity, as defined in Section 9-3 of the Election Code. For
6purposes of item (iv), the funding of all business entities
7applying for or holding a license shall be aggregated in
8determining whether such political committee is an affiliated
9entity.
10    "Affiliated person" means (i) any person with any ownership
11interest or distributive share in excess of 1% of any business
12entity applying for or holding a license, (ii) executive
13employees of any such business entity, and (iii) the spouse of
14the persons described in items (i) and (ii).
15    "Business entity" means any entity doing business for
16profit, whether organized as a corporation, partnership, sole
17proprietorship, limited liability company, or otherwise.
18    "Contribution" means a contribution as defined in Section
199-1.4 of the Election Code.
20    "Declared candidate" means a person who has filed a
21statement of candidacy and petition for nomination or election
22in the principal office of the State Board of Elections, or in
23the office of the appropriate election authority for any county
24or municipality in which a race track is located.
25    "Executive employee" means (i) any person who is an officer
26or director or who fulfills duties equivalent to those of an

 

 

09800SB1739ham004- 206 -LRB098 10559 AMC 56940 a

1officer or director of a business entity applying for or
2holding a license and (ii) any employee of such business entity
3who is required to register under the Lobbyist Registration
4Act.
5    "License" means any organization, inter-track wagering,
6inter-track wagering location, advance deposit wagering or
7concessionaire license issued pursuant to this Act.
8    "Officeholder" means the Governor, Lieutenant Governor,
9Attorney General, Secretary of State, Comptroller, Treasurer,
10member of the General Assembly, or any officeholder in any
11county or municipality in which a race track is located.
12    (c) Any person or business entity applying for or holding a
13license, any affiliated entities or persons of such business
14entity, any horsemen's association, and any entities or persons
15soliciting a contribution or causing a contribution to be made
16on behalf of such person, business entity, or horsemen's
17association, are prohibited from making any contribution to any
18officeholder or declared candidate or any political committee
19affiliated with any officeholder or declared candidate, as
20defined in Section 9-1.8 of the Election Code. This prohibition
21shall commence upon filing of an application for a license and
22shall continue for a period of 2 years after termination,
23suspension or revocation of the license.
24    The Board shall have authority to suspend, revoke, or
25restrict the license and to impose civil penalties of up to
26$100,000 for each violation of this subsection (c). A notice of

 

 

09800SB1739ham004- 207 -LRB098 10559 AMC 56940 a

1each such violation and the penalty imposed shall be published
2on the Board's Internet website and in the Illinois Register.
3Payments received by the State pursuant to this subsection
4shall be deposited into the General Revenue Fund.
5    Any officeholder or declared candidate or any political
6committee affiliated with any officeholder or declared
7candidate that has received a contribution in violation of this
8subsection (c) shall pay an amount equal to the value of the
9contribution to the State no more than 30 days after notice of
10the violation concerning the contribution appears in the
11Illinois Register. Payments received by the State pursuant to
12this subsection (c) shall be deposited into the General Revenue
13Fund.
14    (d) The Board shall post on its website a list of all
15persons, business entities, horsemen's associations, and
16affiliated entities prohibited from making contributions to
17any officeholder or declared candidate political committee
18pursuant to subsection (c), which list shall be updated and
19published, at a minimum, every 6 months.
20    Any person, business entity, horsemen's association, or
21affiliated entity prohibited from making contributions to any
22officeholder or declared candidate political committee
23pursuant to subsection (c) shall notify the Board within 7 days
24after discovering any necessary change or addition to the
25information relating to that person, business entity,
26horsemen's association, or affiliated entity contained in the

 

 

09800SB1739ham004- 208 -LRB098 10559 AMC 56940 a

1list.
2    An individual who acts in good faith and in reliance on any
3information contained in the list shall not be subject to any
4penalties or liability imposed for a violation of this Section.
5    (e) If any provision of this Section is held invalid or its
6application to any person or circumstance is held invalid, the
7invalidity of that provision or application does not affect the
8other provisions or applications of this Section that can be
9given effect without the invalid application or provision.
 
10    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)
11    Sec. 40. (a) The imposition of any fine or penalty provided
12in this Act shall not preclude the Board in its rules and
13regulations from imposing a fine or penalty for any other
14action which, in the Board's discretion, is a detriment or
15impediment to horse racing.
16    (b) The Director of Agriculture or his or her authorized
17representative shall impose the following monetary penalties
18and hold administrative hearings as required for failure to
19submit the following applications, lists, or reports within the
20time period, date or manner required by statute or rule or for
21removing a foal from Illinois prior to inspection:
22        (1) late filing of a renewal application for offering
23    or standing stallion for service:
24            (A) if an application is submitted no more than 30
25        days late, $50;

 

 

09800SB1739ham004- 209 -LRB098 10559 AMC 56940 a

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

 

 

09800SB1739ham004- 210 -LRB098 10559 AMC 56940 a

1    certificate:
2            (A) if an application is submitted no more than 30
3        days late, $50;
4            (B) if an application is submitted no more than 90
5        days late, $150;
6            (C) if an application is submitted no more than 150
7        days late, $250; or
8            (D) if an application is submitted more than 150
9        days late, if filing of the application is allowed
10        under an administrative hearing, $500;
11        (5) failure to report the intent to remove a foal from
12    Illinois prior to inspection, identification and
13    certification by a Department of Agriculture investigator,
14    $50; and
15        (6) if a list or report of mares bred is incomplete,
16    $50 per mare not included on the list or report.
17    Any person upon whom monetary penalties are imposed under
18this Section 3 times within a 5 year period shall have any
19further moneta