100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5146

 

Introduced , by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Chicago Casino Development Authority Act. Provides for the creation of the Chicago Casino Development Authority, whose duties include promotion and maintenance of a casino. Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming at race tracks (and makes conforming changes in various Acts). Further amends the Illinois Horse Racing Act of 1975. Makes various changes concerning Board members. Indefinitely extends the authorization for advance deposit wagering. Contains provisions concerning testing of horses at county fairs and standardbred horses. Further amends the Riverboat Gambling Act. Changes the short title to the Illinois Gambling Act and changes corresponding references to the Act. Adds additional owners licenses, one of which authorizes the conduct of casino gambling in the City of Chicago. Makes changes in provisions concerning the admission tax and privilege tax. Makes other changes. Contains a severability provision. Effective immediately.


LRB100 18631 SMS 33856 b

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5146LRB100 18631 SMS 33856 b

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

 
5    Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 1-2. Legislative intent.
9    (a) This Act is intended to benefit the people of the City
10of Chicago and the State of Illinois by assisting economic
11development and promoting tourism and by increasing the amount
12of revenues available to the City and the State to assist and
13support the City's pension obligation in accordance with Public
14Act 99-506.
15    (b) While authorization of casino gambling in Chicago will
16enhance investment, development, and tourism in Illinois, it is
17recognized that it will do so successfully only if public
18confidence and trust in the credibility and integrity of the
19gambling operations and the regulatory process is maintained.
20Therefore, the provisions of this Act are designed to allow the
21Illinois Gaming Board to strictly regulate the facilities,
22persons, associations, and practices related to gambling

 

 

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1operations pursuant to the police powers of the State,
2including comprehensive law enforcement supervision.
3Consistent with the Gaming Board's authority, the Gaming Board
4alone shall regulate any Chicago casino, just as it now
5regulates every other casino in Illinois.
 
6    Section 1-5. Definitions. As used in this Act:
7    "Authority" means the Chicago Casino Development Authority
8created by this Act.
9    "Casino" means one temporary land-based or water-based
10facility and one permanent land-based or water-based facility
11and airport gaming locations pursuant to Section 1-67 of this
12Act at which lawful gambling is authorized and licensed as
13provided in the Illinois Gambling Act.
14    "Casino Board" means the board appointed pursuant to this
15Act to govern and control the Authority.
16    "Casino management contract" means a legally binding
17agreement between the Authority and a casino operator licensee
18to operate or manage a casino.
19    "Casino operator licensee" means any person or entity
20selected by the Authority and approved and licensed by the
21Gaming Board to manage and operate a casino within the City of
22Chicago pursuant to a casino management contract.
23    "City" means the City of Chicago.
24    "Entity" means a corporation, joint venture, partnership,
25limited liability company, trust, or unincorporated

 

 

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1association.
2    "Executive director" means the person appointed by the
3Casino Board to oversee the daily operations of the Authority.
4    "Gaming Board" means the Illinois Gaming Board created by
5the Illinois Gambling Act.
6    "Mayor" means the Mayor of the City.
 
7    Section 1-12. Creation of the Authority. There is hereby
8created a political subdivision, unit of local government with
9only the powers authorized by law, body politic, and municipal
10corporation, by the name and style of the Chicago Casino
11Development Authority.
 
12    Section 1-13. Duties of the Authority. It shall be the duty
13of the Authority, as an owners licensee under the Illinois
14Gambling Act, to promote and maintain a casino in the City. The
15Authority shall own, acquire, construct, lease, equip, and
16maintain grounds, buildings, and facilities for that purpose.
17However, the Authority shall contract with a casino operator
18licensee to manage and operate the casino and in no event shall
19the Authority or City manage or operate the casino. The
20Authority may contract pursuant to the procedures set forth in
21Section 1-115 with other third parties in order to fulfill its
22purpose. The Authority is responsible for the payment of any
23fees required of a casino operator under subsection (a) of
24Section 7.9 of the Illinois Gambling Act if the casino operator

 

 

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1licensee is late in paying any such fees. The Authority is
2granted all rights and powers necessary to perform such duties.
3Subject to the provisions of this Act, the Authority and casino
4operator licensee are subject to the Illinois Gambling Act and
5all of the rules of the Gaming Board, which shall be applied to
6the Authority and the casino operator licensee in a manner
7consistent with that of other owners licensees under the
8Illinois Gambling Act. Nothing in this Act shall confer
9regulatory authority on the Chicago Casino Development
10Authority. The Illinois Gaming Board shall have exclusive
11regulatory authority over all gambling operations governed by
12this Act.
 
13    Section 1-15. Casino Board.
14    (a) The governing and administrative powers of the
15Authority shall be vested in a body known as the Chicago Casino
16Development Board. The Casino Board shall consist of 5 members
17appointed by the Mayor. One of these members shall be
18designated by the Mayor to serve as chairperson. All of the
19members appointed by the Mayor shall be residents of the City.
20    Each Casino Board appointee shall be subject to a
21preliminary background investigation completed by the Gaming
22Board within 30 days after the appointee's submission of his or
23her application to the Gaming Board. If the Gaming Board
24determines that there is a substantial likelihood that it will
25not find the appointee to be suitable to serve on the Casino

 

 

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1Board (applying the same standards for suitability to the
2appointee as the Gaming Board would apply to an owners licensee
3key person under the Gaming Board's adopted rules), then the
4Gaming Board shall provide a written notice of such
5determination to the appointee and the Corporation Counsel of
6the City. The Mayor may then appoint a new candidate. If no
7such notice is delivered with respect to a particular
8appointee, then commencing on the 31st day following the date
9of the appointee's submission of his or her application to the
10Gaming Board, the appointee shall be deemed an acting member of
11the Casino Board and shall participate as a Casino Board
12member.
13    Each appointee shall be subject to a full background
14investigation and final approval by the Gaming Board prior to
15the opening of the casino. The Gaming Board shall complete its
16full background investigation of the Casino Board appointee
17within 3 months after the date of the appointee's submission of
18his or her application to the Gaming Board. If the Gaming Board
19does not complete its background investigation within the
203-month period, then the Gaming Board shall give a written
21explanation to the appointee, as well as the Mayor, the
22Governor, the President of the Senate, and the Speaker of the
23House of Representatives, as to why it has not reached a final
24determination and set forth a reasonable time when such
25determination shall be made.
26    (b) Casino Board members shall receive $300 for each day

 

 

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

 

 

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1subject to the approval of the Gaming Board as provided in this
2Section.
3    (c) Members of the Casino Board shall serve at the pleasure
4of the Mayor. The Mayor or the Gaming Board may remove any
5member of the Casino Board upon a finding of incompetence,
6neglect of duty, or misfeasance or malfeasance in office or for
7a violation of this Act. The Gaming Board may remove any member
8of the Casino Board for any violation of the Illinois Gambling
9Act or the rules and regulations of the Gaming Board.
10    (d) No member of the Casino Board shall engage in any
11political activity. For the purpose of this Section, "political
12activity" means any activity in support of or in connection
13with any campaign for federal, State, or local elective office
14or any political organization, but does not include activities
15(i) relating to the support or opposition of any executive,
16legislative, or administrative action, as those terms are
17defined in Section 2 of the Lobbyist Registration Act, (ii)
18relating to collective bargaining, or (iii) that are otherwise
19in furtherance of the person's official duties or governmental
20and public service functions.
 
21    Section 1-25. Organization of Casino Board; meetings.
22After appointment by the Mayor, the Casino Board shall organize
23for the transaction of business, provided that the Casino Board
24shall not take any formal action until after the Gaming Board
25has completed its preliminary background investigation of at

 

 

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1least a quorum of the Casino Board as provided in subsection
2(a) of Section 1-15. The Casino Board shall prescribe the time
3and place for meetings, the manner in which special meetings
4may be called, and the notice that must be given to members.
5All actions and meetings of the Casino Board shall be subject
6to the provisions of the Open Meetings Act. Three members of
7the Casino Board shall constitute a quorum. All substantive
8action of the Casino Board shall be by resolution with an
9affirmative vote of a majority of the members.
 
10    Section 1-30. Executive director; officers.
11    (a) The Casino Board shall appoint an executive director,
12who shall be the chief executive officer of the Authority.
13    The executive director shall be subject to a preliminary
14background investigation to be completed by the Gaming Board
15within 30 days after the executive director's submission of his
16or her application to the Gaming Board. If the Gaming Board
17determines that there is a substantial likelihood that it will
18not find the executive director to be suitable to serve in that
19position (applying the same standards for suitability as the
20Gaming Board would apply to an owners licensee key person under
21the Gaming Board's adopted rules), then the Gaming Board shall
22provide a written notice of such determination to the appointee
23and the Corporation Counsel of the City. The Casino Board may
24then appoint a new executive director. If no such notice is
25delivered, then commencing on the 31st day following the date

 

 

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1of the executive director's submission of his or her
2application to the Gaming Board, the executive director shall
3commence all duties as the acting executive director of the
4Authority.
5    The executive director shall be subject to a full
6background investigation and final approval by the Gaming Board
7prior to the opening of the casino. The Gaming Board shall
8complete its full background investigation of the executive
9director within 3 months after the date of the executive
10director's submission of his or her application to the Gaming
11Board. If the Gaming Board does not complete its background
12investigation within the 3-month period, then the Gaming Board
13shall give a written explanation to the appointee, as well as
14the Mayor, the Governor, the President of the Senate, and the
15Speaker of the House of Representatives, as to why it has not
16reached a final determination and set forth a reasonable time
17when such determination shall be made.
18    (b) The Casino Board shall fix the compensation of the
19executive director. Subject to the general control of the
20Casino Board, the executive director shall be responsible for
21the management of the business, properties, and employees of
22the Authority. The executive director shall direct the
23enforcement of all resolutions, rules, and regulations of the
24Casino Board, and shall perform such other duties as may be
25prescribed from time to time by the Casino Board. All employees
26and independent contractors, consultants, engineers,

 

 

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

 

 

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1    Section 1-31. General rights and powers of the Authority.
2    (a) In addition to the duties and powers set forth in this
3Act, the Authority shall have the following rights and powers:
4        (1) Adopt and alter an official seal.
5        (2) Establish and change its fiscal year.
6        (3) Sue and be sued, plead and be impleaded, all in its
7    own name, and agree to binding arbitration of any dispute
8    to which it is a party.
9        (4) Adopt, amend, and repeal bylaws, rules, and
10    regulations consistent with the furtherance of the powers
11    and duties provided for.
12        (5) Maintain its principal office within the City and
13    such other offices as the Casino Board may designate.
14        (6) Select locations in the City for a temporary and a
15    permanent casino.
16        (7) Subject to the bidding procedures of Section 1-115
17    of this Act, retain or employ, either as regular employees
18    or independent contractors, consultants, engineers,
19    architects, accountants, attorneys, financial experts,
20    construction experts and personnel, superintendents,
21    managers and other professional personnel, and such other
22    personnel as may be necessary in the judgment of the Casino
23    Board, and fix their compensation; however, employees of
24    the Authority shall be hired pursuant to and in accordance
25    with the rules and policies the Authority may adopt.

 

 

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1        (8) Pursuant to Section 1-115 of this Act, own,
2    acquire, construct, equip, lease, operate, manage, and
3    maintain grounds, buildings, and facilities to carry out
4    its corporate purposes and duties.
5        (9) Pursuant to Section 1-115, and subject to the
6    oversight, review, and approval of the Gaming Board, enter
7    into, revoke, and modify contracts in accordance with the
8    rules of the Gaming Board as consistently applied to all
9    owners licensees under the Illinois Gambling Act, provided
10    that the Authority may enter into contracts for the design,
11    construction, and outfitting of a temporary casino prior to
12    the Gaming Board's final approval of the Authority's
13    executive director and the members of the Casino Board and
14    prior to the Gaming Board's issuance of the Authority's
15    owners license. Provided further that the entities
16    selected by the Authority for the design, construction, and
17    outfitting of the temporary casino shall be subject to a
18    preliminary background investigation to be completed by
19    the Gaming Board within 30 days after the Gaming Board is
20    provided the identities of the entities. If the Gaming
21    Board determines that there is a substantial likelihood
22    that the entities are not suitable or acceptable to perform
23    their respective functions, then the Gaming Board shall
24    immediately provide notice of that determination to the
25    Authority. If no such notice is delivered, then, commencing
26    on the 31st day following the date on which the information

 

 

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1    identifying such entities is provided to the Gaming Board,
2    such entities shall be permitted to commence the services
3    contemplated for the design, construction, and outfitting
4    of the temporary casino. In no event, however, shall the
5    Authority open a casino until after the Gaming Board has
6    finally approved the Authority's executive director and
7    the members of the Casino Board and the Gaming Board has
8    issued the Authority's owners license and the casino
9    operator's casino operator license.
10        (10) Enter into a casino management contract subject to
11    the provisions of Section 1-45 of this Act.
12        (11) Negotiate and enter into intergovernmental
13    agreements with the State and its agencies, the City, and
14    other units of local government, in furtherance of the
15    powers and duties of the Casino Board.
16        (12) Receive and disburse funds for its own corporate
17    purposes or as otherwise specified in this Act.
18        (13) Borrow money from any source, public or private,
19    for any corporate purpose, including, without limitation,
20    working capital for its operations, reserve funds, or
21    payment of interest, and to mortgage, pledge, or otherwise
22    encumber the property or funds of the Authority and to
23    contract with or engage the services of any person in
24    connection with any financing, including financial
25    institutions, issuers of letters of credit, or insurers and
26    enter into reimbursement agreements with this person or

 

 

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1    entity which may be secured as if money were borrowed from
2    the person or entity.
3        (14) Issue bonds as provided for under this Act.
4        (15) Receive and accept from any source, private or
5    public, contributions, gifts, or grants of money or
6    property to the Authority.
7        (16) Provide for the insurance of any property,
8    operations, officers, members, agents, or employees of the
9    Authority against any risk or hazard, to self-insure or
10    participate in joint self-insurance pools or entities to
11    insure against such risk or hazard, and to provide for the
12    indemnification of its officers, members, employees,
13    contractors, or agents against any and all risks.
14        (17) Exercise all the corporate powers granted
15    Illinois corporations under the Business Corporation Act
16    of 1983, except to the extent that powers are inconsistent
17    with those of a body politic and municipal corporation.
18        (18) Do all things necessary or convenient to carry out
19    the powers granted by this Act.
20    (b) The Casino Board shall comply with all applicable legal
21requirements imposed on other owners licensees to conduct all
22background investigations required under the Illinois Gambling
23Act and the rules of the Gaming Board. This requirement shall
24also extend to senior legal, financial, and administrative
25staff of the Authority.
 

 

 

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

 

 

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1employment, communications, or any activity identified by the
2Casino Board or Gaming Board that, in the judgment of either
3entity, could represent the potential for or the appearance of
4a conflict of interest.
5    (f) Casino Board members, employees of the Authority, and
6elected officials and employees of the City may not have a
7financial interest, directly or indirectly, in his or her own
8name or in the name of any other person, partnership,
9association, trust, corporation, or other entity in any
10contract or subcontract for the performance of any work for the
11Authority. This prohibition shall extend to the holding or
12acquisition of an interest in any entity identified by the
13Casino Board or the Gaming Board that, in the judgment of
14either entity, could represent the potential for or the
15appearance of a financial interest. The holding or acquisition
16of an interest in such entities through an indirect means, such
17as through a mutual fund, shall not be prohibited, except that
18the Gaming Board may identify specific investments or funds
19that, in its judgment, are so influenced by gaming holdings as
20to represent the potential for or the appearance of a conflict
21of interest.
22    (g) Casino Board members, employees of the Authority, and
23elected officials and employees of the City may not accept any
24gift, gratuity, service, compensation, travel, lodging, or
25thing of value, with the exception of unsolicited items of an
26incidental nature, from any person, corporation, or entity

 

 

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

 

 

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

 

 

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1    (m) No Casino Board member, employee of the Authority, or
2elected official or employee of the City shall use or attempt
3to use his or her official position to secure, or attempt to
4secure, any privilege, advantage, favor, or influence for
5himself or herself or others. No Casino Board member, employee
6of the Authority, or elected official or employee of the City
7shall, within one year immediately preceding appointment by the
8Mayor or employment, have been employed or received
9compensation or fees for services from a person or entity, or
10its parent or affiliate, that has engaged in business with the
11Casino Board, a licensee under this Act, or a licensee under
12the Illinois Gambling Act.
13    (n) Any communication between an elected official of the
14City and any applicant for or party to a casino management
15contract with the Authority, or an officer, director, or
16employee thereof, concerning any matter relating in any way to
17gaming or the Authority shall be disclosed to the Casino Board
18and the Gaming Board. Such disclosure shall be in writing by
19the official within 30 days after the communication and shall
20be filed with the Casino Board and the Gaming Board. Disclosure
21must consist of the date of the communication, the identity and
22job title of the person with whom the communication was made, a
23brief summary of the communication, the action requested or
24recommended, all responses made, the identity and job title of
25the person making the response, and any other pertinent
26information. In addition, if the communication is written or

 

 

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1digital, then the entire communication shall be disclosed.
2    Public disclosure of the written summary provided to the
3Casino Board and the Gaming Board shall be subject to the
4exemptions provided under Section 7 of the Freedom of
5Information Act.
6    This subsection (n) shall not apply to communications
7regarding traffic, law enforcement, security, environmental
8issues, City services, transportation, or other routine
9matters concerning the ordinary operations of the casino.
10    (o) For purposes of this Section:
11    "Ordinary operations" means operations relating to the
12casino facility other than the conduct of gambling activities.
13    "Routine matters" includes the application for, issuance,
14renewal, and other processes associated with City permits and
15licenses.
16    "Employee of the City" means only those employees of the
17City who provide services to the Authority or otherwise
18influence the decisions of the Authority or the Casino Board.
19    (p) Any Casino Board member or employee of the Authority
20who violates any provision of this Section is guilty of a Class
214 felony.
 
22    Section 1-45. Casino management contracts.
23    (a) The Casino Board shall enter into a casino management
24contract with a casino operator subject to a background
25investigation and approval by the Gaming Board and payment by

 

 

HB5146- 21 -LRB100 18631 SMS 33856 b

1the proposed casino operator of a fee of $50,000,000, which
2shall be deposited into the Gaming Facilities Fee Revenue Fund.
3The Gaming Board shall complete its background investigation
4and approval of the casino operator within 6 months after the
5date that the proposed casino operator submits its application
6to the Gaming Board. If the Gaming Board does not complete its
7background investigation and approval within the 6-month
8period, then the Gaming Board shall give a written explanation
9to the proposed casino operator and the chief legal officer of
10the Authority as to why it has not reached a final
11determination and when it reasonably expects to make a final
12determination. Validity of the casino management contract is
13contingent upon the issuance of a casino operator license. If
14the Gaming Board grants a casino operator license, the Casino
15Board shall transmit a copy of the executed casino management
16contract to the Gaming Board.
17    (b) After (1) the Authority has been issued an owners
18license, (2) the Gaming Board has issued a casino operator
19license, and (3) the Gaming Board has approved the members of
20the Casino Board, the Authority may conduct gaming operations
21at a temporary facility, subject to the adopted rules of the
22Gaming Board, for no longer than 24 months after gaming
23operations begin. The Gaming Board may, after holding a public
24hearing, grant an extension so long as a permanent facility is
25not operational and the Authority is working in good faith to
26complete the permanent facility. The Gaming Board may grant

 

 

HB5146- 22 -LRB100 18631 SMS 33856 b

1additional extensions following further public hearings. Each
2extension may be for a period of no longer than 6 months.
 
3    Section 1-47. Freedom of Information Act. The Authority
4shall be a public body as defined in the Freedom of Information
5Act and shall be subject to the provisions of the Freedom of
6Information Act.
 
7    Section 1-50. Transfer of funds. The revenues received by
8the Authority (other than amounts required to be paid pursuant
9to the Illinois Gambling Act and amounts required to pay the
10operating expenses of the Authority, to pay amounts due the
11casino operator licensee pursuant to a casino management
12contract, to repay any borrowing of the Authority made pursuant
13to Section 1-31, to pay debt service on any bonds issued under
14Section 1-75, and to pay any expenses in connection with the
15issuance of such bonds pursuant to Section 1-75 or derivative
16products pursuant to Section 1-85) shall be transferred to the
17City by the Authority. Moneys transferred to the City pursuant
18to this Section shall be expended or obligated by the City for
19pension payments in accordance with Public Act 99-506.
 
20    Section 1-60. Auditor General.
21    (a) Prior to the issuance of bonds under this Act, the
22Authority shall submit to the Auditor General a certification
23that:

 

 

HB5146- 23 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 24 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 25 -LRB100 18631 SMS 33856 b

1information for the Committee to submit reports, as necessary,
2to the General Assembly and to the City.
3    The Committee shall consist of 9 members as provided in
4this Section. Five members shall be selected by the Governor
5and 4 members shall be selected by the Mayor. The Governor and
6Mayor shall each appoint at least one current member of the
7General Assembly. The Advisory Committee shall meet
8periodically and shall report the information to the Mayor of
9the City and to the General Assembly by December 31st of every
10year.
11    The Advisory Committee shall be dissolved on the date that
12casino gambling operations are first conducted at a permanent
13facility under the license authorized under Section 7 of the
14Illinois Gambling Act. For the purposes of this Section, the
15terms "female" and "minority person" have the meanings provided
16in Section 2 of the Business Enterprise for Minorities,
17Females, and Persons with Disabilities Act.
 
18    Section 1-65. Acquisition of property; eminent domain
19proceedings. For the lawful purposes of this Act, the City may
20acquire, by eminent domain or by condemnation proceedings in
21the manner provided by the Eminent Domain Act, real or personal
22property or interests in real or personal property located in
23the City, and the City may convey to the Authority property so
24acquired. The acquisition of property under this Section is
25declared to be for a public use.
 

 

 

HB5146- 26 -LRB100 18631 SMS 33856 b

1    Section 1-67. Limitations on gaming at Chicago airports.
2The Authority may conduct gaming operations in an airport under
3the administration or control of the Chicago Department of
4Aviation. Gaming operations may be conducted pursuant to this
5Section so long as (i) gaming operations are conducted in a
6secured area that is beyond the Transportation Security
7Administration security checkpoints and only available to
8airline passengers at least 21 years of age who are members of
9a private club, and not to the general public, (ii) gaming
10operations are limited to slot machines, as defined in Section
114 of the Illinois Gambling Act, and (iii) the combined number
12of gaming positions operating in the City at the airports and
13at the temporary and permanent casino facility does not exceed
14the maximum number of gaming positions authorized pursuant to
15subsection (h) of Section 7 of the Illinois Gambling Act.
16Gaming operations at an airport are subject to all applicable
17laws and rules that apply to any other gaming facility under
18this Act or the Illinois Gambling Act.
 
19    Section 1-70. Local regulation. In addition to this Act,
20the Illinois Gambling Act, and all of the rules of the Gaming
21Board, the casino facilities and operations therein shall be
22subject to all ordinances and regulations of the City. The
23construction, development, and operation of the casino shall
24comply with all ordinances, regulations, rules, and controls of

 

 

HB5146- 27 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 28 -LRB100 18631 SMS 33856 b

1may be issued in one or more series and may be payable and
2secured either on a parity with or separately from other bonds.
3    (b) The bonds of the Authority shall be payable from one or
4more of the following sources: (i) the property or revenues of
5the Authority; (ii) revenues derived from the casino; (iii)
6revenues derived from any casino operator licensee; (iv) fees,
7bid proceeds, charges, lease payments, payments required
8pursuant to any casino management contract or other revenues
9payable to the Authority, or any receipts of the Authority; (v)
10payments by financial institutions, insurance companies, or
11others pursuant to letters or lines of credit, policies of
12insurance, or purchase agreements; (vi) investment earnings
13from funds or accounts maintained pursuant to a bond resolution
14or trust indenture; (vii) proceeds of refunding bonds; (viii)
15any other revenues derived from or payments by the City; and
16(ix) any payments by any casino operator licensee or others
17pursuant to any guaranty agreement.
18    (c) Bonds shall be authorized by a resolution of the
19Authority and may be secured by a trust indenture by and
20between the Authority and a corporate trustee or trustees,
21which may be any trust company or bank having the powers of a
22trust company within or without the State. Bonds shall meet the
23following requirements:
24        (1) Bonds may bear interest payable at any time or
25    times and at any rate or rates, notwithstanding any other
26    provision of law to the contrary, and may be subject to

 

 

HB5146- 29 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 30 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 31 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 32 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 33 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 34 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 35 -LRB100 18631 SMS 33856 b

1exchange cash flows or a series of payments, or to hedge
2payment, rate spread, or similar exposure. Any such agreement
3or contract shall be solely an obligation or indebtedness of
4the Authority and shall not be an obligation or indebtedness of
5the State, nor shall any party thereto have any recourse
6against the State in connection with the agreement or contract.
 
7    Section 1-90. Legality for investment. The State of
8Illinois, all governmental entities, all public officers,
9banks, bankers, trust companies, savings banks and
10institutions, building and loan associations, savings and loan
11associations, investment companies, and other persons carrying
12on a banking business, insurance companies, insurance
13associations, and other persons carrying on an insurance
14business, and all executors, administrators, guardians,
15trustees, and other fiduciaries may legally invest any sinking
16funds, moneys, or other funds belonging to them or within their
17control in any bonds issued under this Act. However, nothing in
18this Section shall be construed as relieving any person or
19entity from any duty of exercising reasonable care in selecting
20securities for purchase or investment.
 
21    Section 1-105. Budgets and reporting.
22    (a) The Casino Board shall annually adopt a budget for each
23fiscal year. The budget may be modified from time to time in
24the same manner and upon the same vote as it may be adopted.

 

 

HB5146- 36 -LRB100 18631 SMS 33856 b

1The budget shall include the Authority's available funds and
2estimated revenues and shall provide for payment of its
3obligations and estimated expenditures for the fiscal year,
4including, without limitation, expenditures for
5administration, operation, maintenance and repairs, debt
6service, and deposits into reserve and other funds and capital
7projects.
8    (b) The Casino Board shall annually cause the finances of
9the Authority to be audited by a firm of certified public
10accountants selected by the Casino Board in accordance with the
11rules of the Gaming Board and post on the Authority's Internet
12website such financial information as is required to be posted
13by all other owners licensees under the Illinois Gambling Act.
14    (c) The Casino Board shall, for each fiscal year, prepare
15an annual report setting forth information concerning its
16activities in the fiscal year and the status of the development
17of the casino. The annual report shall include financial
18information of the Authority consistent with that which is
19required for all other owners licensees under the Illinois
20Gambling Act, the budget for the succeeding fiscal year, and
21the current capital plan as of the date of the report. Copies
22of the annual report shall be made available to persons who
23request them and shall be submitted not later than 120 days
24after the end of the Authority's fiscal year or, if the audit
25of the Authority's financial statements is not completed within
26120 days after the end of the Authority's fiscal year, as soon

 

 

HB5146- 37 -LRB100 18631 SMS 33856 b

1as practical after completion of the audit, to the Governor,
2the Mayor, the General Assembly, and the Commission on
3Government Forecasting and Accountability.
 
4    Section 1-110. Deposit and withdrawal of funds.
5    (a) All funds deposited by the Authority in any bank or
6savings and loan association shall be placed in the name of the
7Authority and shall be withdrawn or paid out only by check or
8draft upon the bank or savings and loan association, signed by
92 officers or employees designated by the Casino Board.
10Notwithstanding any other provision of this Section, the Casino
11Board may designate any of its members or any officer or
12employee of the Authority to authorize the wire transfer of
13funds deposited by the secretary-treasurer of funds in a bank
14or savings and loan association for the payment of payroll and
15employee benefits-related expenses.
16    No bank or savings and loan association shall receive
17public funds as permitted by this Section unless it has
18complied with the requirements established pursuant to Section
196 of the Public Funds Investment Act.
20    (b) If any officer or employee whose signature appears upon
21any check or draft issued pursuant to this Act ceases (after
22attaching his signature) to hold his or her office before the
23delivery of such a check or draft to the payee, his or her
24signature shall nevertheless be valid and sufficient for all
25purposes with the same effect as if he or she had remained in

 

 

HB5146- 38 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 39 -LRB100 18631 SMS 33856 b

1period to exceed one year shall disclose all political
2contributions of the bidder, respondent, offeror, or
3contractor and any affiliated person or entity. Disclosure
4shall include at least the names and addresses of the
5contributors and the dollar amounts of any contributions to any
6political committee made within the previous 2 years. The
7disclosure must be submitted to the Gaming Board with a copy of
8the contract. All such disclosures shall be posted on the
9websites of the Authority and the Gaming Board.
10    (c) As used in this Section:
11    "Contribution" means contribution as defined in Section
129-1.4 of the Election Code.
13    "Affiliated person" means (i) any person with any ownership
14interest or distributive share of the bidding, responding, or
15contracting entity in excess of 1%, (ii) executive employees of
16the bidding, responding, or contracting entity, and (iii) the
17spouse, minor children, and parents of any such persons.
18    "Affiliated entity" means (i) any parent or subsidiary of
19the bidding or contracting entity, (ii) any member of the same
20unitary business group, or (iii) any political committee for
21which the bidding, responding, or contracting entity is the
22sponsoring entity.
23    (d) The Gaming Board may direct the Authority or a casino
24operator licensee to void a contract if a violation of this
25Section occurs. The Authority may direct a casino operator
26licensee to void a contract if a violation of this Section

 

 

HB5146- 40 -LRB100 18631 SMS 33856 b

1occurs.
2    (e) All contracts pertaining to the actual operation of the
3casino and related gaming activities shall be entered into by
4the casino operator licensee and not the Authority and shall be
5subject to the regulation, oversight, and approval of the
6Gaming Board, applying the same regulation, oversight, and
7approval requirements as would be applied to any other owners
8licensee under the Illinois Gambling Act.
 
9    Section 1-115. Purchasing.
10    (a) The Casino Board shall designate an officer of the
11Authority to serve as the Chief Procurement Officer for the
12Authority. The Chief Procurement Officer shall have all powers
13and duties set forth in Section 15 of Division 10 of Article 8
14of the Illinois Municipal Code. Except as otherwise provided in
15this Section, the Chief Procurement Officer of the Authority
16shall conduct procurements on behalf of the Authority subject
17to Title 2, Chapter 92 of the Municipal Code of Chicago, which
18by its terms incorporates Division 10 of Article 8 of the
19Illinois Municipal Code.
20    (b) All contracts for amounts greater than $25,000 must be
21approved by the Casino Board and executed by the chairperson of
22the Casino Board and executive director of the Authority.
23Contracts for amounts of $25,000 or less may be approved and
24executed by the Chief Procurement Officer for the Authority and
25executive director of the Authority, with approval by the chief

 

 

HB5146- 41 -LRB100 18631 SMS 33856 b

1legal counsel for the Authority as to form and legality.
2    (c) All construction contracts and contracts for supplies,
3materials, equipment, and services for amounts greater than
4$25,000 shall be let by a competitive selection process to the
5lowest responsible proposer, after advertising for proposals,
6except for the following:
7        (1) when repair parts, accessories, equipment, or
8    services are required for equipment or services previously
9    furnished or contracted for;
10        (2) when services such as water, light, heat, power,
11    telephone (other than long-distance service), or telegraph
12    are required;
13        (3) casino management contracts, which shall be
14    awarded as set forth in Section 1-45 of this Act;
15        (4) contracts where there is only one economically
16    feasible source;
17        (5) when a purchase is needed on an immediate,
18    emergency basis because there exists a threat to public
19    health or public safety, or when immediate expenditure is
20    necessary for repairs to Authority property in order to
21    protect against further loss of or damage to Authority
22    property, to prevent or minimize serious disruption in
23    Authority services or to ensure the integrity of Authority
24    records;
25        (6) contracts for professional services other than for
26    management of the casino, except such contracts described

 

 

HB5146- 42 -LRB100 18631 SMS 33856 b

1    in subsection (d) of this Section; and
2        (7) contracts for the use, purchase, delivery,
3    movement, or installation of (i) data processing
4    equipment, software, and services and (ii)
5    telecommunications equipment, software, and services.
6    (d) Contracts for professional services for a term of more
7than one year or contracts that may require payment in excess
8of $25,000 in one year shall be let by a competitive bidding
9process to the most highly qualified firm that agrees to
10compensation and other terms of engagement that are both
11reasonable and acceptable to the Casino Board.
12    (e) All contracts involving less than $25,000 shall be let
13by competitive selection process whenever possible, and in any
14event in a manner calculated to ensure the best interests of
15the public.
16    (f) In determining the responsibility of any proposer, the
17Authority may take into account the proposer's (or an
18individual having a beneficial interest, directly or
19indirectly, of more than 1% in such proposing entity) past
20record of dealings with the Authority, the proposer's
21experience, adequacy of equipment, and ability to complete
22performance within the time set, and other factors besides
23financial responsibility. No such contract shall be awarded to
24any proposer other than the lowest proposer (in case of
25purchase or expenditure) unless authorized or approved by a
26vote of at least 3 members of the Casino Board and such action

 

 

HB5146- 43 -LRB100 18631 SMS 33856 b

1is accompanied by a written statement setting forth the reasons
2for not awarding the contract to the highest or lowest
3proposer, as the case may be. The statement shall be kept on
4file in the principal office of the Authority and open to
5public inspection.
6    (g) The Authority shall have the right to reject all
7proposals and to re-advertise for proposals. If after any such
8re-advertisement, no responsible and satisfactory proposals,
9within the terms of the re-advertisement, is received, the
10Authority may award such contract without competitive
11selection. The contract must not be less advantageous to the
12Authority than any valid proposal received pursuant to
13advertisement.
14    (h) Advertisements for proposals and re-proposals shall be
15published at least once in a daily newspaper of general
16circulation published in the City at least 10 calendar days
17before the time for receiving proposals and in an online
18bulletin published on the Authority's website. Such
19advertisements shall state the time and place for receiving and
20opening of proposals and, by reference to plans and
21specifications on file at the time of the first publication or
22in the advertisement itself, shall describe the character of
23the proposed contract in sufficient detail to fully advise
24prospective proposers of their obligations and to ensure free
25and open competitive selection.
26    (i) All proposals in response to advertisements shall be

 

 

HB5146- 44 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 45 -LRB100 18631 SMS 33856 b

1description and any disclosure and contract forms, and
2encouragement to prospective vendors to hire qualified
3veterans, as defined by Section 45-67 of the Illinois
4Procurement Code, and Illinois residents discharged from any
5Illinois adult correctional center subject to Gaming Board
6licensing and eligibility rules. Notice of each and every
7contract that is let or awarded, including renegotiated
8contracts and change orders, shall be published in the online
9bulletin and must include at least all of the information
10specified in this subsection (k), as well as the name of the
11successful responsible proposer or offeror, the contract
12price, and the number of unsuccessful responsive proposers and
13any other disclosure specified in this Section. This notice
14must be posted in the online electronic bulletin prior to
15execution of the contract.
 
16    Section 1-130. Affirmative action and equal opportunity
17obligations of Authority.
18    (a) The Authority is subject to the requirements of Article
19IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
20inclusive) of the Chicago Municipal Code, as now or hereafter
21amended, renumbered, or succeeded, concerning a Minority-Owned
22and Women-Owned Business Enterprise Procurement Program for
23construction contracts, and Section 2-92-420 et seq. of the
24Chicago Municipal Code, as now or hereafter amended,
25renumbered, or succeeded, concerning a Minority-Owned and

 

 

HB5146- 46 -LRB100 18631 SMS 33856 b

1Women-Owned Business Enterprise Procurement Program.
2    (b) The Authority is authorized to enter into agreements
3with contractors' associations, labor unions, and the
4contractors working on the development of the casino to
5establish an apprenticeship preparedness training program to
6provide for an increase in the number of minority and female
7journeymen and apprentices in the building trades and to enter
8into agreements with community college districts or other
9public or private institutions to provide readiness training.
10The Authority is further authorized to enter into contracts
11with public and private educational institutions and persons in
12the gaming, entertainment, hospitality, and tourism industries
13to provide training for employment in those industries.
 
14    Section 1-135. Transfer of interest. Neither the Authority
15nor the City may sell, lease, rent, transfer, exchange, or
16otherwise convey any interest that they have in the casino
17without prior approval of the General Assembly.
 
18    Section 1-140. Home rule. The regulation and licensing of
19casinos and casino gaming, casino gaming facilities, and casino
20operator licensees under this Act are exclusive powers and
21functions of the State. A home rule unit may not regulate or
22license casinos, casino gaming, casino gaming facilities, or
23casino operator licensees under this Act, except as provided
24under this Act. This Section is a denial and limitation of home

 

 

HB5146- 47 -LRB100 18631 SMS 33856 b

1rule powers and functions under subsection (h) of Section 6 of
2Article VII of the Illinois Constitution.
 
3
ARTICLE 90.

 
4    Section 90-1. Findings. The General Assembly makes all of
5the following findings:
6        (1) That the cumulative reduction to pre-K through 12
7    education funding since 2009 is approximately
8    $861,000,000.
9        (2) That general state aid to Illinois common schools
10    has been underfunded as a result of budget cuts, resulting
11    in pro-rated payments to school districts that are less
12    than the foundational level of $6,119 per pupil, which
13    represents the minimum each pupil needs to be educated.
14        (3) That a significant infusion of new revenue is
15    necessary in order to fully fund the foundation level and
16    to maintain and support education in Illinois.
17        (4) That the decline of the Illinois horse racing and
18    breeding program, a $2.5 billion industry, would be
19    reversed if this amendatory Act of the 100th General
20    Assembly would be enacted.
21        (5) That the Illinois horse racing industry is on the
22    verge of extinction due to fierce competition from fully
23    developed horse racing and gaming operations in other
24    states.

 

 

HB5146- 48 -LRB100 18631 SMS 33856 b

1        (6) That allowing the State's horse racing venues,
2    currently licensed gaming destinations, to maximize their
3    capacities with gaming machines, would generate up to $120
4    million to $200 million for the State in the form of extra
5    licensing fees, plus an additional $100 million to $300
6    million in recurring annual tax revenue for the State to
7    help ensure that school, road, and other building projects
8    promised under the capital plan occur on schedule.
9        (7) That Illinois agriculture and other businesses
10    that support and supply the horse racing industry, already
11    a sector that employs over 37,000 Illinoisans, also stand
12    to substantially benefit and would be much more likely to
13    create additional jobs should Illinois horse racing once
14    again become competitive with other states.
15        (8) That by keeping these projects on track, the State
16    can be sure that significant job and economic growth will
17    in fact result from the previously enacted legislation.
18        (9) That gaming machines at Illinois horse racing
19    tracks would create an estimated 1,200 to 1,500 permanent
20    jobs, and an estimated capital investment of up to $200
21    million to $400 million at these race tracks would prompt
22    additional trade organization jobs necessary to construct
23    new facilities or remodel race tracks to operate electronic
24    gaming.
 
25    Section 90-3. The State Officials and Employees Ethics Act

 

 

HB5146- 49 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 50 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 51 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 52 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 53 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 54 -LRB100 18631 SMS 33856 b

1    division, bureau, authority, or other administrative unit
2    within the government of this State;
3        (5) chief procurement officers, State purchasing
4    officers, and their designees whose duties are directly
5    related to State procurement; and
6        (6) chiefs of staff, deputy chiefs of staff, associate
7    chiefs of staff, assistant chiefs of staff, and deputy
8    governors; .
9        (7) employees of the Illinois Racing Board; and
10        (8) employees of the Illinois Gaming Board.
11    (i) For the purposes of this Section, with respect to
12officers or employees of a regional transit board, as defined
13in this Act, the phrase "person or entity" does not include:
14(i) the United States government, (ii) the State, (iii)
15municipalities, as defined under Article VII, Section 1 of the
16Illinois Constitution, (iv) units of local government, as
17defined under Article VII, Section 1 of the Illinois
18Constitution, or (v) school districts.
19(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
 
20    Section 90-5. The Alcoholism and Other Drug Abuse and
21Dependency Act is amended by changing Section 5-20 as follows:
 
22    (20 ILCS 301/5-20)
23    Sec. 5-20. Compulsive gambling program.
24    (a) Subject to appropriation, the Department shall

 

 

HB5146- 55 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 56 -LRB100 18631 SMS 33856 b

1    (c) Subject to appropriation, the Department shall produce
2and supply the signs specified in Section 10.7 of the Illinois
3Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
41975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
5of the Charitable Games Act, and Section 13.1 of the Illinois
6Riverboat Gambling Act.
7(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
8    Section 90-6. The Department of Commerce and Economic
9Opportunity Law of the Civil Administrative Code of Illinois is
10amended by adding Sections 605-530 and 605-535 as follows:
 
11    (20 ILCS 605/605-530 new)
12    Sec. 605-530. The Depressed Communities Economic
13Development Board.
14    (a) The Depressed Communities Economic Development Board
15is created as an advisory board within the Department of
16Commerce and Economic Opportunity. The Board shall consist of
17the following members:
18        (1) 3 members appointed by the Governor, one of whom
19    shall be appointed to serve an initial term of one year and
20    2 of whom shall be appointed to serve an initial term of 2
21    years;
22        (2) 2 members appointed by the Speaker of the House of
23    Representatives, one of whom shall be appointed to serve an
24    initial term of one year and one of whom shall be appointed

 

 

HB5146- 57 -LRB100 18631 SMS 33856 b

1    to serve an initial term of 2 years;
2        (3) 2 members appointed by the President of the Senate,
3    one of whom shall be appointed to serve an initial term of
4    one year and one of whom shall be appointed to serve an
5    initial term of 2 years;
6        (4) 2 members appointed by the Minority Leader of the
7    House of Representatives, one of whom shall be appointed to
8    serve an initial term of one year and one of whom shall be
9    appointed to serve an initial term of 2 years; and
10        (5) 2 members appointed by the Minority Leader of the
11    Senate, one of whom shall be appointed to serve an initial
12    term of one year and one of whom shall be appointed to
13    serve an initial term of 2 years.
14    The members of the Board shall elect a member to serve as
15chair of the Board. The members of the Board shall reflect the
16composition of the Illinois population with regard to ethnic
17and racial composition.
18    After the initial terms, each member shall be appointed to
19serve a term of 2 years and until his or her successor has been
20appointed and assumes office. If a vacancy occurs in the Board
21membership, then the vacancy shall be filled in the same manner
22as the initial appointment. No member of the Board shall, at
23the time of his or her appointment or within 2 years before the
24appointment, hold elected office or be appointed to a State
25board, commission, or agency. All Board members are subject to
26the State Officials and Employees Ethics Act.

 

 

HB5146- 58 -LRB100 18631 SMS 33856 b

1    (b) Board members shall serve without compensation, but may
2be reimbursed for their reasonable travel expenses from funds
3available for that purpose. The Department of Commerce and
4Economic Opportunity shall provide staff and administrative
5support services to the Board.
6    (c) The Board must make recommendations, which must be
7approved by a majority of the Board, to the Department of
8Commerce and Economic Opportunity concerning the award of
9grants from amounts appropriated to the Department from the
10Depressed Communities Economic Development Fund, a special
11fund created in the State treasury. The Department must make
12grants to public or private entities submitting proposals to
13the Board to revitalize an Illinois depressed community. Grants
14may be used by these entities only for those purposes
15conditioned with the grant. For the purposes of this subsection
16(c), plans for revitalizing an Illinois depressed community
17include plans intended to curb high levels of poverty,
18unemployment, job and population loss, and general distress. An
19Illinois depressed community is an area where the poverty rate,
20as determined by using the most recent data released by the
21United States Census Bureau, is at least 3% greater than the
22State poverty rate as determined by using the most recent data
23released by the United States Census Bureau.
 
24    (20 ILCS 605/605-535 new)
25    Sec. 605-535. The Commission on the Future of Economic

 

 

HB5146- 59 -LRB100 18631 SMS 33856 b

1Development of the Latino Community.
2    (a) There is hereby created the Commission on the Future of
3Economic Development of the Latino Community within the
4Department. The purpose of the Commission shall be to maintain
5and develop the economy of Latinos and to provide opportunities
6for this community, which will enhance and expand the quality
7of their lives.
8    The Commission shall concentrate its major efforts on
9strategic planning, policy research and analysis, advocacy,
10evaluation, and promoting coordination and collaboration.
11    During each regular legislative session, the Commission
12must consult with appropriate legislative committees about the
13State's economic development needs and opportunities in the
14Latino community.
15    By October 1st of each even-numbered year, the Commission
16must submit to the Governor and the General Assembly a biennial
17comprehensive statewide economic development strategy for the
18Latino community with a report on progress from the previous
19comprehensive strategy.
20    The comprehensive statewide economic development strategy
21may include, but is not limited to:
22        (1) an assessment of the Latino community's economic
23    vitality;
24        (2) recommended goals, objectives, and priorities for
25    the next biennium and the future;
26        (3) a common set of outcomes and benchmarks for the

 

 

HB5146- 60 -LRB100 18631 SMS 33856 b

1    economic development system as a whole for the Latino
2    community;
3        (4) recommendations for removing barriers for Latinos
4    in employment;
5        (5) an inventory of existing relevant programs
6    compiled by the Commission from materials submitted by
7    agencies;
8        (6) recommendations for expanding, discontinuing, or
9    redirecting existing programs or adding new programs to
10    better serve the Latino community; and
11        (7) recommendations of best practices and public and
12    private sector roles in implementing the comprehensive
13    statewide economic development strategy.
14    In developing the biennial statewide economic development
15strategy, goals, objectives, priorities, and recommendations,
16the Commission shall consult, collaborate, and coordinate with
17relevant State agencies, private sector business, nonprofit
18organizations involved in economic development, trade
19associations, associate development organizations, and
20relevant local organizations in order to avoid duplication of
21effort.
22    State agencies shall cooperate with the Commission and
23provide information as the Commission may reasonably request.
24    The Commission shall review and make budget
25recommendations to the Governor's Office of Management and
26Budget and the General Assembly in areas relating to the

 

 

HB5146- 61 -LRB100 18631 SMS 33856 b

1economic development in the State's Latino community.
2    The Commission shall evaluate its own performance on a
3regular basis.
4    The Commission may accept gifts, grants, donations,
5sponsorships, or contributions from any federal, State, or
6local governmental agency or program, or any private source,
7and expend the same for any purpose consistent with this
8Section.
9    (b) The Commission shall consist of 12 voting members,
10appointed by the Governor, 4 of whom shall be appointed to
11serve an initial term of one year, 4 of whom shall be appointed
12to serve an initial term of 2 years, and 4 of whom shall be
13appointed to serve an initial term of 3 years. After the
14initial term, each member shall be appointed to a term of 3
15years. Members of the Commission shall serve at the pleasure of
16the Governor for not more than 2 consecutive 3-year terms. In
17appointing members, the Governor shall appoint individuals
18from the following private industry sectors:
19        (1) production agriculture;
20        (2) at least 2 individuals from manufacturing, one of
21    whom shall represent a company with no more than 75
22    employees;
23        (3) transportation, construction, and logistics;
24        (4) travel and tourism;
25        (5) financial services and insurance;
26        (6) information technology and communications; and

 

 

HB5146- 62 -LRB100 18631 SMS 33856 b

1        (7) biotechnology.
2    The members of the Commission shall choose a member to
3serve as chair of the Commission. The members of the Commission
4shall be representative, to the extent possible, of the various
5geographic areas of the State. The Director shall serve as an
6ad hoc nonvoting member of the Commission. Vacancies shall be
7filled in the same manner as the original appointments. The
8members of the Commission shall serve without compensation.
9    (c) The Commission shall meet at least 4 times per year,
10with at least one meeting each calendar quarter, at the call of
11the director or 4 voting members of the Commission. The staff
12and support for the Commission shall be provided by the
13Department.
14    (d) The Commission and Department are encouraged to involve
15other essential groups in the work of the Commission,
16including, but not limited to:
17        (1) public universities;
18        (2) community colleges;
19        (3) other educational institutions; and
20        (4) the Department of Labor.
21    (e) The Commission shall make recommendations, which must
22be approved by a majority of the members of the Commission, to
23the Department concerning the award of grants from amounts
24appropriated to the Department from the Latino Community
25Economic Development Fund, a special fund in the State
26treasury. The Department shall make grants to public or private

 

 

HB5146- 63 -LRB100 18631 SMS 33856 b

1entities submitting proposals to the Commission to assist in
2the economic development of the Latino community. Grants may be
3used by these entities only for those purposes conditioned with
4the grant. The Commission shall coordinate with the Department
5to develop grant criteria.
6    (f) For the purposes of this Section:
7    "Department" means the Department of Commerce and Economic
8Development.
9    "Director" means the Director of Commerce and Economic
10Development.
11    "Educational institutions" means nonprofit public and
12private colleges, community colleges, State colleges, and
13universities in this State.
 
14    Section 90-8. The Illinois Lottery Law is amended by
15changing Section 9.1 as follows:
 
16    (20 ILCS 1605/9.1)
17    Sec. 9.1. Private manager and management agreement.
18    (a) As used in this Section:
19    "Offeror" means a person or group of persons that responds
20to a request for qualifications under this Section.
21    "Request for qualifications" means all materials and
22documents prepared by the Department to solicit the following
23from offerors:
24        (1) Statements of qualifications.

 

 

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

 

 

HB5146- 65 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 66 -LRB100 18631 SMS 33856 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    specifically required by the management agreement.
2        (20) The transition of rights and obligations,
3    including any associated equipment or other assets used in
4    the operation of the Lottery, from the manager to any
5    successor manager of the lottery, including the
6    Department, following the termination of or foreclosure
7    upon the management agreement.
8        (21) Right of use of copyrights, trademarks, and
9    service marks held by the Department in the name of the
10    State. The agreement must provide that any use of them by
11    the manager shall only be for the purpose of fulfilling its
12    obligations under the management agreement during the term
13    of the agreement.
14        (22) The disclosure of any information requested by the
15    Department to enable it to comply with the reporting
16    requirements and information requests provided for under
17    subsection (p) of this Section.
18    (e) Notwithstanding any other law to the contrary, the
19Department shall select a private manager through a competitive
20request for qualifications process consistent with Section
2120-35 of the Illinois Procurement Code, which shall take into
22account:
23        (1) the offeror's ability to market the Lottery to
24    those residents who are new, infrequent, or lapsed players
25    of the Lottery, especially those who are most likely to
26    make regular purchases on the Internet;

 

 

HB5146- 72 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 73 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 74 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 75 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 76 -LRB100 18631 SMS 33856 b

1competition with the Lottery. The forms of gambling authorized
2by this amendatory Act of the 100th General Assembly constitute
3authorized forms of gambling that are not in direct competition
4with the Lottery.
5    (n) The private manager shall be subject to a complete
6investigation in the third, seventh, and tenth years of the
7agreement (if the agreement is for a 10-year term) by the
8Department in cooperation with the Auditor General to determine
9whether the private manager has complied with this Section and
10the management agreement. The private manager shall bear the
11cost of an investigation or reinvestigation of the private
12manager under this subsection.
13    (o) The powers conferred by this Section are in addition
14and supplemental to the powers conferred by any other law. If
15any other law or rule is inconsistent with this Section,
16including, but not limited to, provisions of the Illinois
17Procurement Code, then this Section controls as to any
18management agreement entered into under this Section. This
19Section and any rules adopted under this Section contain full
20and complete authority for a management agreement between the
21Department and a private manager. No law, procedure,
22proceeding, publication, notice, consent, approval, order, or
23act by the Department or any other officer, Department, agency,
24or instrumentality of the State or any political subdivision is
25required for the Department to enter into a management
26agreement under this Section. This Section contains full and

 

 

HB5146- 77 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 78 -LRB100 18631 SMS 33856 b

1a private management agreement has been terminated. The
2selection process shall at a minimum take into account the
3criteria set forth in items (1) through (4) of subsection (e)
4of this Section and may include provisions consistent with
5subsections (f), (g), (h), and (i) of this Section. The Chief
6Procurement Officer shall also implement and administer the
7adopted selection process upon the termination of a private
8management agreement. The Department, after the Chief
9Procurement Officer certifies that the procurement process has
10been followed in accordance with the rules adopted under this
11subsection (o), shall select a final offeror as the private
12manager and sign the management agreement with the private
13manager.
14    Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
1521.9, the Department shall distribute all proceeds of lottery
16tickets and shares sold in the following priority and manner:
17        (1) The payment of prizes and retailer bonuses.
18        (2) The payment of costs incurred in the operation and
19    administration of the Lottery, including the payment of
20    sums due to the private manager under the management
21    agreement with the Department.
22        (3) On the last day of each month or as soon thereafter
23    as possible, the State Comptroller shall direct and the
24    State Treasurer shall transfer from the State Lottery Fund
25    to the Common School Fund an amount that is equal to the
26    proceeds transferred in the corresponding month of fiscal

 

 

HB5146- 79 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 80 -LRB100 18631 SMS 33856 b

1(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17.)
 
2    Section 90-10. The Department of Revenue Law of the Civil
3Administrative Code of Illinois is amended by changing Section
42505-305 as follows:
 
5    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
6    Sec. 2505-305. Investigators.
7    (a) The Department has the power to appoint investigators
8to conduct all investigations, searches, seizures, arrests,
9and other duties imposed under the provisions of any law
10administered by the Department. Except as provided in
11subsection (c), these investigators have and may exercise all
12the powers of peace officers solely for the purpose of
13enforcing taxing measures administered by the Department.
14    (b) The Director must authorize to each investigator
15employed under this Section and to any other employee of the
16Department exercising the powers of a peace officer a distinct
17badge that, on its face, (i) clearly states that the badge is
18authorized by the Department and (ii) contains a unique
19identifying number. No other badge shall be authorized by the
20Department.
21    (c) The Department may enter into agreements with the
22Illinois Gaming Board providing that investigators appointed
23under this Section shall exercise the peace officer powers set
24forth in paragraph (20.6) of subsection (c) of Section 5 of the

 

 

HB5146- 81 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 82 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 83 -LRB100 18631 SMS 33856 b

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

 

 

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

 

 

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1accordance with subsections (d) and (f) of Section 30 of the
2Innovation Development and Economy Act.
3(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
496-939, eff. 6-24-10.)
 
5    Section 90-15. The State Finance Act is amended by adding
6Sections 5.886, 5.887, 5.888, and 6z-105 and by changing
7Section 6z-45 as follows:
 
8    (30 ILCS 105/5.886 new)
9    Sec. 5.886. The Gaming Facilities Fee Revenue Fund.
 
10    (30 ILCS 105/5.887 new)
11    Sec. 5.887. The Depressed Communities Economic Development
12Fund.
 
13    (30 ILCS 105/5.888 new)
14    Sec. 5.888. The Latino Community Economic Development
15Fund.
 
16    (30 ILCS 105/6z-45)
17    Sec. 6z-45. The School Infrastructure Fund.
18    (a) The School Infrastructure Fund is created as a special
19fund in the State Treasury.
20    In addition to any other deposits authorized by law,
21beginning January 1, 2000, on the first day of each month, or

 

 

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1as soon thereafter as may be practical, the State Treasurer and
2State Comptroller shall transfer the sum of $5,000,000 from the
3General Revenue Fund to the School Infrastructure Fund, except
4that, notwithstanding any other provision of law, and in
5addition to any other transfers that may be provided for by
6law, before June 30, 2012, the Comptroller and the Treasurer
7shall transfer $45,000,000 from the General Revenue Fund into
8the School Infrastructure Fund, and, for fiscal year 2013 only,
9the Treasurer and the Comptroller shall transfer $1,250,000
10from the General Revenue Fund to the School Infrastructure Fund
11on the first day of each month; provided, however, that no such
12transfers shall be made from July 1, 2001 through June 30,
132003.
14    (a-5) Money in the School Infrastructure Fund may be used
15to pay the expenses of the State Board of Education, the
16Governor's Office of Management and Budget, and the Capital
17Development Board in administering programs under the School
18Construction Law, the total expenses not to exceed $1,315,000
19in any fiscal year.
20    (b) Subject to the transfer provisions set forth below,
21money in the School Infrastructure Fund shall, if and when the
22State of Illinois incurs any bonded indebtedness for the
23construction of school improvements under subsection (e) of
24Section 5 of the General Obligation Bond Act, be set aside and
25used for the purpose of paying and discharging annually the
26principal and interest on that bonded indebtedness then due and

 

 

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1payable, and for no other purpose.
2    In addition to other transfers to the General Obligation
3Bond Retirement and Interest Fund made pursuant to Section 15
4of the General Obligation Bond Act, upon each delivery of bonds
5issued for construction of school improvements under the School
6Construction Law, the State Comptroller shall compute and
7certify to the State Treasurer the total amount of principal
8of, interest on, and premium, if any, on such bonds during the
9then current and each succeeding fiscal year. With respect to
10the interest payable on variable rate bonds, such
11certifications shall be calculated at the maximum rate of
12interest that may be payable during the fiscal year, after
13taking into account any credits permitted in the related
14indenture or other instrument against the amount of such
15interest required to be appropriated for that period.
16    On or before the last day of each month, the State
17Treasurer and State Comptroller shall transfer from the School
18Infrastructure Fund to the General Obligation Bond Retirement
19and Interest Fund an amount sufficient to pay the aggregate of
20the principal of, interest on, and premium, if any, on the
21bonds payable on their next payment date, divided by the number
22of monthly transfers occurring between the last previous
23payment date (or the delivery date if no payment date has yet
24occurred) and the next succeeding payment date. Interest
25payable on variable rate bonds shall be calculated at the
26maximum rate of interest that may be payable for the relevant

 

 

HB5146- 88 -LRB100 18631 SMS 33856 b

1period, after taking into account any credits permitted in the
2related indenture or other instrument against the amount of
3such interest required to be appropriated for that period.
4Interest for which moneys have already been deposited into the
5capitalized interest account within the General Obligation
6Bond Retirement and Interest Fund shall not be included in the
7calculation of the amounts to be transferred under this
8subsection.
9    (b-5) The money deposited into the School Infrastructure
10Fund from transfers pursuant to subsections (c-30) and (c-35)
11of Section 13 of the Illinois Riverboat Gambling Act shall be
12applied, without further direction, as provided in subsection
13(b-3) of Section 5-35 of the School Construction Law.
14    (c) The surplus, if any, in the School Infrastructure Fund
15after payments made pursuant to subsections (a-5), (b), and
16(b-5) of this Section shall, subject to appropriation, be used
17as follows:
18    First - to make 3 payments to the School Technology
19Revolving Loan Fund as follows:
20        Transfer of $30,000,000 in fiscal year 1999;
21        Transfer of $20,000,000 in fiscal year 2000; and
22        Transfer of $10,000,000 in fiscal year 2001.
23    Second - to pay any amounts due for grants for school
24construction projects and debt service under the School
25Construction Law.
26    Third - to pay any amounts due for grants for school

 

 

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1maintenance projects under the School Construction Law.
2(Source: P.A. 100-23, eff. 7-6-17.)
 
3    (30 ILCS 105/6z-105 new)
4    Sec. 6z-105. The Gaming Facilities Fee Revenue Fund.
5    (a) The Gaming Facilities Fee Revenue Fund is created as a
6special fund in the State treasury.
7    (b) The revenues in the Fund shall be used, subject to
8appropriation, by the Comptroller for the purpose of providing
9appropriations to the Illinois Gaming Board for the
10administration and enforcement of the Illinois Gambling Act and
11the applicable provisions of the Chicago Casino Development
12Authority Act, with any remaining amounts being transferred to
13the General Revenue Fund.
14    (c) The Fund shall consist of fee revenues received
15pursuant to subsection (a) of Section 1-45 of the Chicago
16Casino Development Authority Act and pursuant to subsections
17(e-10), (e-15), (h), and (h-5) of Section 7 and subsections
18(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
19Act. All interest earned on moneys in the Fund shall be
20deposited into the Fund.
21    (d) The Fund shall not be subject to administrative charges
22or chargebacks, including, but not limited to, those authorized
23under subsection (h) of Section 8 of this Act.
 
24    Section 90-20. The Illinois Income Tax Act is amended by

 

 

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1changing Sections 201, 303, 304 and 710 as follows:
 
2    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
3    Sec. 201. Tax imposed.
4    (a) In general. A tax measured by net income is hereby
5imposed on every individual, corporation, trust and estate for
6each taxable year ending after July 31, 1969 on the privilege
7of earning or receiving income in or as a resident of this
8State. Such tax shall be in addition to all other occupation or
9privilege taxes imposed by this State or by any municipal
10corporation or political subdivision thereof.
11    (b) Rates. The tax imposed by subsection (a) of this
12Section shall be determined as follows, except as adjusted by
13subsection (d-1):
14        (1) In the case of an individual, trust or estate, for
15    taxable years ending prior to July 1, 1989, an amount equal
16    to 2 1/2% of the taxpayer's net income for the taxable
17    year.
18        (2) In the case of an individual, trust or estate, for
19    taxable years beginning prior to July 1, 1989 and ending
20    after June 30, 1989, an amount equal to the sum of (i) 2
21    1/2% of the taxpayer's net income for the period prior to
22    July 1, 1989, as calculated under Section 202.3, and (ii)
23    3% of the taxpayer's net income for the period after June
24    30, 1989, as calculated under Section 202.3.
25        (3) In the case of an individual, trust or estate, for

 

 

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1    taxable years beginning after June 30, 1989, and ending
2    prior to January 1, 2011, an amount equal to 3% of the
3    taxpayer's net income for the taxable year.
4        (4) In the case of an individual, trust, or estate, for
5    taxable years beginning prior to January 1, 2011, and
6    ending after December 31, 2010, an amount equal to the sum
7    of (i) 3% of the taxpayer's net income for the period prior
8    to January 1, 2011, as calculated under Section 202.5, and
9    (ii) 5% of the taxpayer's net income for the period after
10    December 31, 2010, as calculated under Section 202.5.
11        (5) In the case of an individual, trust, or estate, for
12    taxable years beginning on or after January 1, 2011, and
13    ending prior to January 1, 2015, an amount equal to 5% of
14    the taxpayer's net income for the taxable year.
15        (5.1) In the case of an individual, trust, or estate,
16    for taxable years beginning prior to January 1, 2015, and
17    ending after December 31, 2014, an amount equal to the sum
18    of (i) 5% of the taxpayer's net income for the period prior
19    to January 1, 2015, as calculated under Section 202.5, and
20    (ii) 3.75% of the taxpayer's net income for the period
21    after December 31, 2014, as calculated under Section 202.5.
22        (5.2) In the case of an individual, trust, or estate,
23    for taxable years beginning on or after January 1, 2015,
24    and ending prior to July 1, 2017, an amount equal to 3.75%
25    of the taxpayer's net income for the taxable year.
26        (5.3) In the case of an individual, trust, or estate,

 

 

HB5146- 92 -LRB100 18631 SMS 33856 b

1    for taxable years beginning prior to July 1, 2017, and
2    ending after June 30, 2017, an amount equal to the sum of
3    (i) 3.75% of the taxpayer's net income for the period prior
4    to July 1, 2017, as calculated under Section 202.5, and
5    (ii) 4.95% of the taxpayer's net income for the period
6    after June 30, 2017, as calculated under Section 202.5.
7        (5.4) In the case of an individual, trust, or estate,
8    for taxable years beginning on or after July 1, 2017, an
9    amount equal to 4.95% of the taxpayer's net income for the
10    taxable year.
11        (6) In the case of a corporation, for taxable years
12    ending prior to July 1, 1989, an amount equal to 4% of the
13    taxpayer's net income for the taxable year.
14        (7) In the case of a corporation, for taxable years
15    beginning prior to July 1, 1989 and ending after June 30,
16    1989, an amount equal to the sum of (i) 4% of the
17    taxpayer's net income for the period prior to July 1, 1989,
18    as calculated under Section 202.3, and (ii) 4.8% of the
19    taxpayer's net income for the period after June 30, 1989,
20    as calculated under Section 202.3.
21        (8) In the case of a corporation, for taxable years
22    beginning after June 30, 1989, and ending prior to January
23    1, 2011, an amount equal to 4.8% of the taxpayer's net
24    income for the taxable year.
25        (9) In the case of a corporation, for taxable years
26    beginning prior to January 1, 2011, and ending after

 

 

HB5146- 93 -LRB100 18631 SMS 33856 b

1    December 31, 2010, an amount equal to the sum of (i) 4.8%
2    of the taxpayer's net income for the period prior to
3    January 1, 2011, as calculated under Section 202.5, and
4    (ii) 7% of the taxpayer's net income for the period after
5    December 31, 2010, as calculated under Section 202.5.
6        (10) In the case of a corporation, for taxable years
7    beginning on or after January 1, 2011, and ending prior to
8    January 1, 2015, an amount equal to 7% of the taxpayer's
9    net income for the taxable year.
10        (11) In the case of a corporation, for taxable years
11    beginning prior to January 1, 2015, and ending after
12    December 31, 2014, an amount equal to the sum of (i) 7% of
13    the taxpayer's net income for the period prior to January
14    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
15    of the taxpayer's net income for the period after December
16    31, 2014, as calculated under Section 202.5.
17        (12) In the case of a corporation, for taxable years
18    beginning on or after January 1, 2015, and ending prior to
19    July 1, 2017, an amount equal to 5.25% of the taxpayer's
20    net income for the taxable year.
21        (13) In the case of a corporation, for taxable years
22    beginning prior to July 1, 2017, and ending after June 30,
23    2017, an amount equal to the sum of (i) 5.25% of the
24    taxpayer's net income for the period prior to July 1, 2017,
25    as calculated under Section 202.5, and (ii) 7% of the
26    taxpayer's net income for the period after June 30, 2017,

 

 

HB5146- 94 -LRB100 18631 SMS 33856 b

1    as calculated under Section 202.5.
2        (14) In the case of a corporation, for taxable years
3    beginning on or after July 1, 2017, an amount equal to 7%
4    of the taxpayer's net income for the taxable year.
5    The rates under this subsection (b) are subject to the
6provisions of Section 201.5.
7    (b-5) Surcharge; sale or exchange of assets, properties,
8and intangibles of electronic gaming licensees. For each of
9taxable years 2018 through 2026, a surcharge is imposed on all
10taxpayers on income arising from the sale or exchange of
11capital assets, depreciable business property, real property
12used in the trade or business, and Section 197 intangibles (i)
13of an organization licensee under the Illinois Horse Racing Act
14of 1975 and (ii) of an electronic gaming licensee under the
15Illinois Gambling Act. The amount of the surcharge is equal to
16the amount of federal income tax liability for the taxable year
17attributable to those sales and exchanges. The surcharge
18imposed shall not apply if:
19        (1) the electronic gaming license, organization
20    license, or race track property is transferred as a result
21    of any of the following:
22            (A) bankruptcy, a receivership, or a debt
23        adjustment initiated by or against the initial
24        licensee or the substantial owners of the initial
25        licensee;
26            (B) cancellation, revocation, or termination of

 

 

HB5146- 95 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 96 -LRB100 18631 SMS 33856 b

1initial licensee to receive the electronic gaming license is
2not subject to a surcharge. The Department shall adopt rules
3necessary to implement and administer this subsection.
4    (c) Personal Property Tax Replacement Income Tax.
5Beginning on July 1, 1979 and thereafter, in addition to such
6income tax, there is also hereby imposed the Personal Property
7Tax Replacement Income Tax measured by net income on every
8corporation (including Subchapter S corporations), partnership
9and trust, for each taxable year ending after June 30, 1979.
10Such taxes are imposed on the privilege of earning or receiving
11income in or as a resident of this State. The Personal Property
12Tax Replacement Income Tax shall be in addition to the income
13tax imposed by subsections (a) and (b) of this Section and in
14addition to all other occupation or privilege taxes imposed by
15this State or by any municipal corporation or political
16subdivision thereof.
17    (d) Additional Personal Property Tax Replacement Income
18Tax Rates. The personal property tax replacement income tax
19imposed by this subsection and subsection (c) of this Section
20in the case of a corporation, other than a Subchapter S
21corporation and except as adjusted by subsection (d-1), shall
22be an additional amount equal to 2.85% of such taxpayer's net
23income for the taxable year, except that beginning on January
241, 1981, and thereafter, the rate of 2.85% specified in this
25subsection shall be reduced to 2.5%, and in the case of a
26partnership, trust or a Subchapter S corporation shall be an

 

 

HB5146- 97 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 98 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 99 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 100 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 101 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 102 -LRB100 18631 SMS 33856 b

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

 

 

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

 

 

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

 

 

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

 

 

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1    determined in accordance with the determination of income
2    and distributive share of income under Sections 702 and 704
3    and Subchapter S of the Internal Revenue Code. The credit
4    shall be .5% of the basis for such property. The credit
5    shall be available only in the taxable year in which the
6    property is placed in service in the Enterprise Zone or
7    River Edge Redevelopment Zone and shall not be allowed to
8    the extent that it would reduce a taxpayer's liability for
9    the tax imposed by subsections (a) and (b) of this Section
10    to below zero. For tax years ending on or after December
11    31, 1985, the credit shall be allowed for the tax year in
12    which the property is placed in service, or, if the amount
13    of the credit exceeds the tax liability for that year,
14    whether it exceeds the original liability or the liability
15    as later amended, such excess may be carried forward and
16    applied to the tax liability of the 5 taxable years
17    following the excess credit year. The credit shall be
18    applied to the earliest year for which there is a
19    liability. If there is credit from more than one tax year
20    that is available to offset a liability, the credit
21    accruing first in time shall be applied first.
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        (f);
4            (C) is acquired by purchase as defined in Section
5        179(d) of the Internal Revenue Code;
6            (D) is used in the Enterprise Zone or River Edge
7        Redevelopment Zone by the taxpayer; and
8            (E) has not been previously used in Illinois in
9        such a manner and by such a person as would qualify for
10        the credit provided by this subsection (f) or
11        subsection (e).
12        (3) The basis of qualified property shall be the basis
13    used to compute the depreciation deduction for federal
14    income tax purposes.
15        (4) If the basis of the property for federal income tax
16    depreciation purposes is increased after it has been placed
17    in service in the Enterprise Zone or River Edge
18    Redevelopment Zone by the taxpayer, the amount of such
19    increase shall be deemed property placed in service on the
20    date of such increase in basis.
21        (5) The term "placed in service" shall have the same
22    meaning as under Section 46 of the Internal Revenue Code.
23        (6) If during any taxable year, any property ceases to
24    be qualified property in the hands of the taxpayer within
25    48 months after being placed in service, or the situs of
26    any qualified property is moved outside the Enterprise Zone

 

 

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

 

 

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

 

 

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

 

 

HB5146- 111 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 112 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 113 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 114 -LRB100 18631 SMS 33856 b

1imposed by subsections (c) and (d). If any portion of the
2reduced amount of credit has been carried to a different
3taxable year, an amended return shall be filed for such taxable
4year to reduce the amount of credit claimed.
5    (j) Training expense credit. Beginning with tax years
6ending on or after December 31, 1986 and prior to December 31,
72003, a taxpayer shall be allowed a credit against the tax
8imposed by subsections (a) and (b) under this Section for all
9amounts paid or accrued, on behalf of all persons employed by
10the taxpayer in Illinois or Illinois residents employed outside
11of Illinois by a taxpayer, for educational or vocational
12training in semi-technical or technical fields or semi-skilled
13or skilled fields, which were deducted from gross income in the
14computation of taxable income. The credit against the tax
15imposed by subsections (a) and (b) shall be 1.6% of such
16training expenses. For partners, shareholders of subchapter S
17corporations, and owners of limited liability companies, if the
18liability company is treated as a partnership for purposes of
19federal and State income taxation, there shall be allowed a
20credit under this subsection (j) to be determined in accordance
21with the determination of income and distributive share of
22income under Sections 702 and 704 and subchapter S of the
23Internal Revenue Code.
24    Any credit allowed under this subsection which is unused in
25the year the credit is earned may be carried forward to each of
26the 5 taxable years following the year for which the credit is

 

 

HB5146- 115 -LRB100 18631 SMS 33856 b

1first computed until it is used. This credit shall be applied
2first to the earliest year for which there is a liability. If
3there is a credit under this subsection from more than one tax
4year that is available to offset a liability the earliest
5credit arising under this subsection shall be applied first. No
6carryforward credit may be claimed in any tax year ending on or
7after December 31, 2003.
8    (k) Research and development credit. For tax years ending
9after July 1, 1990 and prior to December 31, 2003, and
10beginning again for tax years ending on or after December 31,
112004, and ending prior to January 1, 2022, a taxpayer shall be
12allowed a credit against the tax imposed by subsections (a) and
13(b) of this Section for increasing research activities in this
14State. The credit allowed against the tax imposed by
15subsections (a) and (b) shall be equal to 6 1/2% of the
16qualifying expenditures for increasing research activities in
17this State. For partners, shareholders of subchapter S
18corporations, and owners of limited liability companies, if the
19liability company is treated as a partnership for purposes of
20federal and State income taxation, there shall be allowed a
21credit under this subsection to be determined in accordance
22with the determination of income and distributive share of
23income under Sections 702 and 704 and subchapter S of the
24Internal Revenue Code.
25    For purposes of this subsection, "qualifying expenditures"
26means the qualifying expenditures as defined for the federal

 

 

HB5146- 116 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 117 -LRB100 18631 SMS 33856 b

1credit or credits then will be carried forward to the next
2following year in which a tax liability is incurred, except
3that no credit can be carried forward to a year which is more
4than 5 years after the year in which the expense for which the
5credit is given was incurred.
6    No inference shall be drawn from this amendatory Act of the
791st General Assembly in construing this Section for taxable
8years beginning before January 1, 1999.
9    It is the intent of the General Assembly that the research
10and development credit under this subsection (k) shall apply
11continuously for all tax years ending on or after December 31,
122004 and ending prior to January 1, 2022, including, but not
13limited to, the period beginning on January 1, 2016 and ending
14on the effective date of this amendatory Act of the 100th
15General Assembly. All actions taken in reliance on the
16continuation of the credit under this subsection (k) by any
17taxpayer are hereby validated.
18    (l) Environmental Remediation Tax Credit.
19        (i) For tax years ending after December 31, 1997 and on
20    or before December 31, 2001, a taxpayer shall be allowed a
21    credit against the tax imposed by subsections (a) and (b)
22    of this Section for certain amounts paid for unreimbursed
23    eligible remediation costs, as specified in this
24    subsection. For purposes of this Section, "unreimbursed
25    eligible remediation costs" means costs approved by the
26    Illinois Environmental Protection Agency ("Agency") under

 

 

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

 

 

HB5146- 119 -LRB100 18631 SMS 33856 b

1    and (b) shall be equal to 25% of the unreimbursed eligible
2    remediation costs in excess of $100,000 per site, except
3    that the $100,000 threshold shall not apply to any site
4    contained in an enterprise zone as determined by the
5    Department of Commerce and Community Affairs (now
6    Department of Commerce and Economic Opportunity). The
7    total credit allowed shall not exceed $40,000 per year with
8    a maximum total of $150,000 per site. For partners and
9    shareholders of subchapter S corporations, there shall be
10    allowed a credit under this subsection to be determined in
11    accordance with the determination of income and
12    distributive share of income under Sections 702 and 704 and
13    subchapter S of the Internal Revenue Code.
14        (ii) A credit allowed under this subsection that is
15    unused in the year the credit is earned may be carried
16    forward to each of the 5 taxable years following the year
17    for which the credit is first earned until it is used. The
18    term "unused credit" does not include any amounts of
19    unreimbursed eligible remediation costs in excess of the
20    maximum credit per site authorized under paragraph (i).
21    This credit shall be applied first to the earliest year for
22    which there is a liability. If there is a credit under this
23    subsection from more than one tax year that is available to
24    offset a liability, the earliest credit arising under this
25    subsection shall be applied first. A credit allowed under
26    this subsection may be sold to a buyer as part of a sale of

 

 

HB5146- 120 -LRB100 18631 SMS 33856 b

1    all or part of the remediation site for which the credit
2    was granted. The purchaser of a remediation site and the
3    tax credit shall succeed to the unused credit and remaining
4    carry-forward period of the seller. To perfect the
5    transfer, the assignor shall record the transfer in the
6    chain of title for the site and provide written notice to
7    the Director of the Illinois Department of Revenue of the
8    assignor's intent to sell the remediation site and the
9    amount of the tax credit to be transferred as a portion of
10    the sale. In no event may a credit be transferred to any
11    taxpayer if the taxpayer or a related party would not be
12    eligible under the provisions of subsection (i).
13        (iii) For purposes of this Section, the term "site"
14    shall have the same meaning as under Section 58.2 of the
15    Environmental Protection Act.
16    (m) Education expense credit. Beginning with tax years
17ending after December 31, 1999, a taxpayer who is the custodian
18of one or more qualifying pupils shall be allowed a credit
19against the tax imposed by subsections (a) and (b) of this
20Section for qualified education expenses incurred on behalf of
21the qualifying pupils. The credit shall be equal to 25% of
22qualified education expenses, but in no event may the total
23credit under this subsection claimed by a family that is the
24custodian of qualifying pupils exceed (i) $500 for tax years
25ending prior to December 31, 2017, and (ii) $750 for tax years
26ending on or after December 31, 2017. In no event shall a

 

 

HB5146- 121 -LRB100 18631 SMS 33856 b

1credit under this subsection reduce the taxpayer's liability
2under this Act to less than zero. Notwithstanding any other
3provision of law, for taxable years beginning on or after
4January 1, 2017, no taxpayer may claim a credit under this
5subsection (m) if the taxpayer's adjusted gross income for the
6taxable year exceeds (i) $500,000, in the case of spouses
7filing a joint federal tax return or (ii) $250,000, in the case
8of all other taxpayers. This subsection is exempt from the
9provisions of Section 250 of this Act.
10    For purposes of this subsection:
11    "Qualifying pupils" means individuals who (i) are
12residents of the State of Illinois, (ii) are under the age of
1321 at the close of the school year for which a credit is
14sought, and (iii) during the school year for which a credit is
15sought were full-time pupils enrolled in a kindergarten through
16twelfth grade education program at any school, as defined in
17this subsection.
18    "Qualified education expense" means the amount incurred on
19behalf of a qualifying pupil in excess of $250 for tuition,
20book fees, and lab fees at the school in which the pupil is
21enrolled during the regular school year.
22    "School" means any public or nonpublic elementary or
23secondary school in Illinois that is in compliance with Title
24VI of the Civil Rights Act of 1964 and attendance at which
25satisfies the requirements of Section 26-1 of the School Code,
26except that nothing shall be construed to require a child to

 

 

HB5146- 122 -LRB100 18631 SMS 33856 b

1attend any particular public or nonpublic school to qualify for
2the credit under this Section.
3    "Custodian" means, with respect to qualifying pupils, an
4Illinois resident who is a parent, the parents, a legal
5guardian, or the legal guardians of the qualifying pupils.
6    (n) River Edge Redevelopment Zone site remediation tax
7credit.
8        (i) For tax years ending on or after December 31, 2006,
9    a taxpayer shall be allowed a credit against the tax
10    imposed by subsections (a) and (b) of this Section for
11    certain amounts paid for unreimbursed eligible remediation
12    costs, as specified in this subsection. For purposes of
13    this Section, "unreimbursed eligible remediation costs"
14    means costs approved by the Illinois Environmental
15    Protection Agency ("Agency") under Section 58.14a of the
16    Environmental Protection Act that were paid in performing
17    environmental remediation at a site within a River Edge
18    Redevelopment Zone for which a No Further Remediation
19    Letter was issued by the Agency and recorded under Section
20    58.10 of the Environmental Protection Act. The credit must
21    be claimed for the taxable year in which Agency approval of
22    the eligible remediation costs is granted. The credit is
23    not available to any taxpayer if the taxpayer or any
24    related party caused or contributed to, in any material
25    respect, a release of regulated substances on, in, or under
26    the site that was identified and addressed by the remedial

 

 

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

 

 

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1    this subsection may be sold to a buyer as part of a sale of
2    all or part of the remediation site for which the credit
3    was granted. The purchaser of a remediation site and the
4    tax credit shall succeed to the unused credit and remaining
5    carry-forward period of the seller. To perfect the
6    transfer, the assignor shall record the transfer in the
7    chain of title for the site and provide written notice to
8    the Director of the Illinois Department of Revenue of the
9    assignor's intent to sell the remediation site and the
10    amount of the tax credit to be transferred as a portion of
11    the sale. In no event may a credit be transferred to any
12    taxpayer if the taxpayer or a related party would not be
13    eligible under the provisions of subsection (i).
14        (iii) For purposes of this Section, the term "site"
15    shall have the same meaning as under Section 58.2 of the
16    Environmental Protection Act.
17    (o) For each of taxable years during the Compassionate Use
18of Medical Cannabis Pilot Program, a surcharge is imposed on
19all taxpayers on income arising from the sale or exchange of
20capital assets, depreciable business property, real property
21used in the trade or business, and Section 197 intangibles of
22an organization registrant under the Compassionate Use of
23Medical Cannabis Pilot Program Act. The amount of the surcharge
24is equal to the amount of federal income tax liability for the
25taxable year attributable to those sales and exchanges. The
26surcharge imposed does not apply if:

 

 

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1        (1) the medical cannabis cultivation center
2    registration, medical cannabis dispensary registration, or
3    the property of a registration is transferred as a result
4    of any of the following:
5            (A) bankruptcy, a receivership, or a debt
6        adjustment initiated by or against the initial
7        registration or the substantial owners of the initial
8        registration;
9            (B) cancellation, revocation, or termination of
10        any registration by the Illinois Department of Public
11        Health;
12            (C) a determination by the Illinois Department of
13        Public Health that transfer of the registration is in
14        the best interests of Illinois qualifying patients as
15        defined by the Compassionate Use of Medical Cannabis
16        Pilot Program Act;
17            (D) the death of an owner of the equity interest in
18        a registrant;
19            (E) the acquisition of a controlling interest in
20        the stock or substantially all of the assets of a
21        publicly traded company;
22            (F) a transfer by a parent company to a wholly
23        owned subsidiary; or
24            (G) the transfer or sale to or by one person to
25        another person where both persons were initial owners
26        of the registration when the registration was issued;

 

 

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1        or
2        (2) the cannabis cultivation center registration,
3    medical cannabis dispensary registration, or the
4    controlling interest in a registrant's property is
5    transferred in a transaction to lineal descendants in which
6    no gain or loss is recognized or as a result of a
7    transaction in accordance with Section 351 of the Internal
8    Revenue Code in which no gain or loss is recognized.
9(Source: P.A. 100-22, eff. 7-6-17.)
 
10    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)
11    Sec. 303. (a) In general. Any item of capital gain or loss,
12and any item of income from rents or royalties from real or
13tangible personal property, interest, dividends, and patent or
14copyright royalties, and prizes awarded under the Illinois
15Lottery Law, and, for taxable years ending on or after December
1631, 2018, wagering and gambling winnings from Illinois sources
17as set forth in subsection (e-1) of this Section, to the extent
18such item constitutes nonbusiness income, together with any
19item of deduction directly allocable thereto, shall be
20allocated by any person other than a resident as provided in
21this Section.
22    (b) Capital gains and losses.
23        (1) Real property. Capital gains and losses from sales
24    or exchanges of real property are allocable to this State
25    if the property is located in this State.

 

 

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1        (2) Tangible personal property. Capital gains and
2    losses from sales or exchanges of tangible personal
3    property are allocable to this State if, at the time of
4    such sale or exchange:
5            (A) The property had its situs in this State; or
6            (B) The taxpayer had its commercial domicile in
7        this State and was not taxable in the state in which
8        the property had its situs.
9        (3) Intangibles. Capital gains and losses from sales or
10    exchanges of intangible personal property are allocable to
11    this State if the taxpayer had its commercial domicile in
12    this State at the time of such sale or exchange.
13    (c) Rents and royalties.
14        (1) Real property. Rents and royalties from real
15    property are allocable to this State if the property is
16    located in this State.
17        (2) Tangible personal property. Rents and royalties
18    from tangible personal property are allocable to this
19    State:
20            (A) If and to the extent that the property is
21        utilized in this State; or
22            (B) In their entirety if, at the time such rents or
23        royalties were paid or accrued, the taxpayer had its
24        commercial domicile in this State and was not organized
25        under the laws of or taxable with respect to such rents
26        or royalties in the state in which the property was

 

 

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1        utilized. The extent of utilization of tangible
2        personal property in a state is determined by
3        multiplying the rents or royalties derived from such
4        property by a fraction, the numerator of which is the
5        number of days of physical location of the property in
6        the state during the rental or royalty period in the
7        taxable year and the denominator of which is the number
8        of days of physical location of the property everywhere
9        during all rental or royalty periods in the taxable
10        year. If the physical location of the property during
11        the rental or royalty period is unknown or
12        unascertainable by the taxpayer, tangible personal
13        property is utilized in the state in which the property
14        was located at the time the rental or royalty payer
15        obtained possession.
16    (d) Patent and copyright royalties.
17        (1) Allocation. Patent and copyright royalties are
18    allocable to this State:
19            (A) If and to the extent that the patent or
20        copyright is utilized by the payer in this State; or
21            (B) If and to the extent that the patent or
22        copyright is utilized by the payer in a state in which
23        the taxpayer is not taxable with respect to such
24        royalties and, at the time such royalties were paid or
25        accrued, the taxpayer had its commercial domicile in
26        this State.

 

 

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1        (2) Utilization.
2            (A) A patent is utilized in a state to the extent
3        that it is employed in production, fabrication,
4        manufacturing or other processing in the state or to
5        the extent that a patented product is produced in the
6        state. If the basis of receipts from patent royalties
7        does not permit allocation to states or if the
8        accounting procedures do not reflect states of
9        utilization, the patent is utilized in this State if
10        the taxpayer has its commercial domicile in this State.
11            (B) A copyright is utilized in a state to the
12        extent that printing or other publication originates
13        in the state. If the basis of receipts from copyright
14        royalties does not permit allocation to states or if
15        the accounting procedures do not reflect states of
16        utilization, the copyright is utilized in this State if
17        the taxpayer has its commercial domicile in this State.
18    (e) Illinois lottery prizes. Prizes awarded under the
19Illinois Lottery Law are allocable to this State. Payments
20received in taxable years ending on or after December 31, 2013,
21from the assignment of a prize under Section 13.1 of the
22Illinois Lottery Law are allocable to this State.
23    (e-1) Wagering and gambling winnings. Payments received in
24taxable years ending on or after December 31, 2018 of winnings
25from pari-mutuel wagering conducted at a wagering facility
26licensed under the Illinois Horse Racing Act of 1975 and from

 

 

HB5146- 130 -LRB100 18631 SMS 33856 b

1gambling games conducted on a riverboat or in a casino or
2electronic gaming facility licensed under the Illinois
3Gambling Act are allocable to this State.
4    (e-5) Unemployment benefits. Unemployment benefits paid by
5the Illinois Department of Employment Security are allocable to
6this State.
7    (f) Taxability in other state. For purposes of allocation
8of income pursuant to this Section, a taxpayer is taxable in
9another state if:
10        (1) In that state he is subject to a net income tax, a
11    franchise tax measured by net income, a franchise tax for
12    the privilege of doing business, or a corporate stock tax;
13    or
14        (2) That state has jurisdiction to subject the taxpayer
15    to a net income tax regardless of whether, in fact, the
16    state does or does not.
17    (g) Cross references.
18        (1) For allocation of interest and dividends by persons
19    other than residents, see Section 301(c)(2).
20        (2) For allocation of nonbusiness income by residents,
21    see Section 301(a).
22(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
 
23    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
24    Sec. 304. Business income of persons other than residents.
25    (a) In general. The business income of a person other than

 

 

HB5146- 131 -LRB100 18631 SMS 33856 b

1a resident shall be allocated to this State if such person's
2business income is derived solely from this State. If a person
3other than a resident derives business income from this State
4and one or more other states, then, for tax years ending on or
5before December 30, 1998, and except as otherwise provided by
6this Section, such person's business income shall be
7apportioned to this State by multiplying the income by a
8fraction, the numerator of which is the sum of the property
9factor (if any), the payroll factor (if any) and 200% of the
10sales factor (if any), and the denominator of which is 4
11reduced by the number of factors other than the sales factor
12which have a denominator of zero and by an additional 2 if the
13sales factor has a denominator of zero. For tax years ending on
14or after December 31, 1998, and except as otherwise provided by
15this Section, persons other than residents who derive business
16income from this State and one or more other states shall
17compute their apportionment factor by weighting their
18property, payroll, and sales factors as provided in subsection
19(h) of this Section.
20    (1) Property factor.
21        (A) The property factor is a fraction, the numerator of
22    which is the average value of the person's real and
23    tangible personal property owned or rented and used in the
24    trade or business in this State during the taxable year and
25    the denominator of which is the average value of all the
26    person's real and tangible personal property owned or

 

 

HB5146- 132 -LRB100 18631 SMS 33856 b

1    rented and used in the trade or business during the taxable
2    year.
3        (B) Property owned by the person is valued at its
4    original cost. Property rented by the person is valued at 8
5    times the net annual rental rate. Net annual rental rate is
6    the annual rental rate paid by the person less any annual
7    rental rate received by the person from sub-rentals.
8        (C) The average value of property shall be determined
9    by averaging the values at the beginning and ending of the
10    taxable year but the Director may require the averaging of
11    monthly values during the taxable year if reasonably
12    required to reflect properly the average value of the
13    person's property.
14    (2) Payroll factor.
15        (A) The payroll factor is a fraction, the numerator of
16    which is the total amount paid in this State during the
17    taxable year by the person for compensation, and the
18    denominator of which is the total compensation paid
19    everywhere during the taxable year.
20        (B) Compensation is paid in this State if:
21            (i) The individual's service is performed entirely
22        within this State;
23            (ii) The individual's service is performed both
24        within and without this State, but the service
25        performed without this State is incidental to the
26        individual's service performed within this State; or

 

 

HB5146- 133 -LRB100 18631 SMS 33856 b

1            (iii) Some of the service is performed within this
2        State and either the base of operations, or if there is
3        no base of operations, the place from which the service
4        is directed or controlled is within this State, or the
5        base of operations or the place from which the service
6        is directed or controlled is not in any state in which
7        some part of the service is performed, but the
8        individual's residence is in this State.
9            (iv) Compensation paid to nonresident professional
10        athletes.
11            (a) General. The Illinois source income of a
12        nonresident individual who is a member of a
13        professional athletic team includes the portion of the
14        individual's total compensation for services performed
15        as a member of a professional athletic team during the
16        taxable year which the number of duty days spent within
17        this State performing services for the team in any
18        manner during the taxable year bears to the total
19        number of duty days spent both within and without this
20        State during the taxable year.
21            (b) Travel days. Travel days that do not involve
22        either a game, practice, team meeting, or other similar
23        team event are not considered duty days spent in this
24        State. However, such travel days are considered in the
25        total duty days spent both within and without this
26        State.

 

 

HB5146- 134 -LRB100 18631 SMS 33856 b

1            (c) Definitions. For purposes of this subpart
2        (iv):
3                (1) The term "professional athletic team"
4            includes, but is not limited to, any professional
5            baseball, basketball, football, soccer, or hockey
6            team.
7                (2) The term "member of a professional
8            athletic team" includes those employees who are
9            active players, players on the disabled list, and
10            any other persons required to travel and who travel
11            with and perform services on behalf of a
12            professional athletic team on a regular basis.
13            This includes, but is not limited to, coaches,
14            managers, and trainers.
15                (3) Except as provided in items (C) and (D) of
16            this subpart (3), the term "duty days" means all
17            days during the taxable year from the beginning of
18            the professional athletic team's official
19            pre-season training period through the last game
20            in which the team competes or is scheduled to
21            compete. Duty days shall be counted for the year in
22            which they occur, including where a team's
23            official pre-season training period through the
24            last game in which the team competes or is
25            scheduled to compete, occurs during more than one
26            tax year.

 

 

HB5146- 135 -LRB100 18631 SMS 33856 b

1                    (A) Duty days shall also include days on
2                which a member of a professional athletic team
3                performs service for a team on a date that does
4                not fall within the foregoing period (e.g.,
5                participation in instructional leagues, the
6                "All Star Game", or promotional "caravans").
7                Performing a service for a professional
8                athletic team includes conducting training and
9                rehabilitation activities, when such
10                activities are conducted at team facilities.
11                    (B) Also included in duty days are game
12                days, practice days, days spent at team
13                meetings, promotional caravans, preseason
14                training camps, and days served with the team
15                through all post-season games in which the team
16                competes or is scheduled to compete.
17                    (C) Duty days for any person who joins a
18                team during the period from the beginning of
19                the professional athletic team's official
20                pre-season training period through the last
21                game in which the team competes, or is
22                scheduled to compete, shall begin on the day
23                that person joins the team. Conversely, duty
24                days for any person who leaves a team during
25                this period shall end on the day that person
26                leaves the team. Where a person switches teams

 

 

HB5146- 136 -LRB100 18631 SMS 33856 b

1                during a taxable year, a separate duty-day
2                calculation shall be made for the period the
3                person was with each team.
4                    (D) Days for which a member of a
5                professional athletic team is not compensated
6                and is not performing services for the team in
7                any manner, including days when such member of
8                a professional athletic team has been
9                suspended without pay and prohibited from
10                performing any services for the team, shall not
11                be treated as duty days.
12                    (E) Days for which a member of a
13                professional athletic team is on the disabled
14                list and does not conduct rehabilitation
15                activities at facilities of the team, and is
16                not otherwise performing services for the team
17                in Illinois, shall not be considered duty days
18                spent in this State. All days on the disabled
19                list, however, are considered to be included in
20                total duty days spent both within and without
21                this State.
22                (4) The term "total compensation for services
23            performed as a member of a professional athletic
24            team" means the total compensation received during
25            the taxable year for services performed:
26                    (A) from the beginning of the official

 

 

HB5146- 137 -LRB100 18631 SMS 33856 b

1                pre-season training period through the last
2                game in which the team competes or is scheduled
3                to compete during that taxable year; and
4                    (B) during the taxable year on a date which
5                does not fall within the foregoing period
6                (e.g., participation in instructional leagues,
7                the "All Star Game", or promotional caravans).
8                This compensation shall include, but is not
9            limited to, salaries, wages, bonuses as described
10            in this subpart, and any other type of compensation
11            paid during the taxable year to a member of a
12            professional athletic team for services performed
13            in that year. This compensation does not include
14            strike benefits, severance pay, termination pay,
15            contract or option year buy-out payments,
16            expansion or relocation payments, or any other
17            payments not related to services performed for the
18            team.
19                For purposes of this subparagraph, "bonuses"
20            included in "total compensation for services
21            performed as a member of a professional athletic
22            team" subject to the allocation described in
23            Section 302(c)(1) are: bonuses earned as a result
24            of play (i.e., performance bonuses) during the
25            season, including bonuses paid for championship,
26            playoff or "bowl" games played by a team, or for

 

 

HB5146- 138 -LRB100 18631 SMS 33856 b

1            selection to all-star league or other honorary
2            positions; and bonuses paid for signing a
3            contract, unless the payment of the signing bonus
4            is not conditional upon the signee playing any
5            games for the team or performing any subsequent
6            services for the team or even making the team, the
7            signing bonus is payable separately from the
8            salary and any other compensation, and the signing
9            bonus is nonrefundable.
10    (3) Sales factor.
11        (A) The sales factor is a fraction, the numerator of
12    which is the total sales of the person in this State during
13    the taxable year, and the denominator of which is the total
14    sales of the person everywhere during the taxable year.
15        (B) Sales of tangible personal property are in this
16    State if:
17            (i) The property is delivered or shipped to a
18        purchaser, other than the United States government,
19        within this State regardless of the f. o. b. point or
20        other conditions of the sale; or
21            (ii) The property is shipped from an office, store,
22        warehouse, factory or other place of storage in this
23        State and either the purchaser is the United States
24        government or the person is not taxable in the state of
25        the purchaser; provided, however, that premises owned
26        or leased by a person who has independently contracted

 

 

HB5146- 139 -LRB100 18631 SMS 33856 b

1        with the seller for the printing of newspapers,
2        periodicals or books shall not be deemed to be an
3        office, store, warehouse, factory or other place of
4        storage for purposes of this Section. Sales of tangible
5        personal property are not in this State if the seller
6        and purchaser would be members of the same unitary
7        business group but for the fact that either the seller
8        or purchaser is a person with 80% or more of total
9        business activity outside of the United States and the
10        property is purchased for resale.
11        (B-1) Patents, copyrights, trademarks, and similar
12    items of intangible personal property.
13            (i) Gross receipts from the licensing, sale, or
14        other disposition of a patent, copyright, trademark,
15        or similar item of intangible personal property, other
16        than gross receipts governed by paragraph (B-7) of this
17        item (3), are in this State to the extent the item is
18        utilized in this State during the year the gross
19        receipts are included in gross income.
20            (ii) Place of utilization.
21                (I) A patent is utilized in a state to the
22            extent that it is employed in production,
23            fabrication, manufacturing, or other processing in
24            the state or to the extent that a patented product
25            is produced in the state. If a patent is utilized
26            in more than one state, the extent to which it is

 

 

HB5146- 140 -LRB100 18631 SMS 33856 b

1            utilized in any one state shall be a fraction equal
2            to the gross receipts of the licensee or purchaser
3            from sales or leases of items produced,
4            fabricated, manufactured, or processed within that
5            state using the patent and of patented items
6            produced within that state, divided by the total of
7            such gross receipts for all states in which the
8            patent is utilized.
9                (II) A copyright is utilized in a state to the
10            extent that printing or other publication
11            originates in the state. If a copyright is utilized
12            in more than one state, the extent to which it is
13            utilized in any one state shall be a fraction equal
14            to the gross receipts from sales or licenses of
15            materials printed or published in that state
16            divided by the total of such gross receipts for all
17            states in which the copyright is utilized.
18                (III) Trademarks and other items of intangible
19            personal property governed by this paragraph (B-1)
20            are utilized in the state in which the commercial
21            domicile of the licensee or purchaser is located.
22            (iii) If the state of utilization of an item of
23        property governed by this paragraph (B-1) cannot be
24        determined from the taxpayer's books and records or
25        from the books and records of any person related to the
26        taxpayer within the meaning of Section 267(b) of the

 

 

HB5146- 141 -LRB100 18631 SMS 33856 b

1        Internal Revenue Code, 26 U.S.C. 267, the gross
2        receipts attributable to that item shall be excluded
3        from both the numerator and the denominator of the
4        sales factor.
5        (B-2) Gross receipts from the license, sale, or other
6    disposition of patents, copyrights, trademarks, and
7    similar items of intangible personal property, other than
8    gross receipts governed by paragraph (B-7) of this item
9    (3), may be included in the numerator or denominator of the
10    sales factor only if gross receipts from licenses, sales,
11    or other disposition of such items comprise more than 50%
12    of the taxpayer's total gross receipts included in gross
13    income during the tax year and during each of the 2
14    immediately preceding tax years; provided that, when a
15    taxpayer is a member of a unitary business group, such
16    determination shall be made on the basis of the gross
17    receipts of the entire unitary business group.
18        (B-5) For taxable years ending on or after December 31,
19    2008, except as provided in subsections (ii) through (vii),
20    receipts from the sale of telecommunications service or
21    mobile telecommunications service are in this State if the
22    customer's service address is in this State.
23            (i) For purposes of this subparagraph (B-5), the
24        following terms have the following meanings:
25            "Ancillary services" means services that are
26        associated with or incidental to the provision of

 

 

HB5146- 142 -LRB100 18631 SMS 33856 b

1        "telecommunications services", including but not
2        limited to "detailed telecommunications billing",
3        "directory assistance", "vertical service", and "voice
4        mail services".
5            "Air-to-Ground Radiotelephone service" means a
6        radio service, as that term is defined in 47 CFR 22.99,
7        in which common carriers are authorized to offer and
8        provide radio telecommunications service for hire to
9        subscribers in aircraft.
10            "Call-by-call Basis" means any method of charging
11        for telecommunications services where the price is
12        measured by individual calls.
13            "Communications Channel" means a physical or
14        virtual path of communications over which signals are
15        transmitted between or among customer channel
16        termination points.
17            "Conference bridging service" means an "ancillary
18        service" that links two or more participants of an
19        audio or video conference call and may include the
20        provision of a telephone number. "Conference bridging
21        service" does not include the "telecommunications
22        services" used to reach the conference bridge.
23            "Customer Channel Termination Point" means the
24        location where the customer either inputs or receives
25        the communications.
26            "Detailed telecommunications billing service"

 

 

HB5146- 143 -LRB100 18631 SMS 33856 b

1        means an "ancillary service" of separately stating
2        information pertaining to individual calls on a
3        customer's billing statement.
4            "Directory assistance" means an "ancillary
5        service" of providing telephone number information,
6        and/or address information.
7            "Home service provider" means the facilities based
8        carrier or reseller with which the customer contracts
9        for the provision of mobile telecommunications
10        services.
11            "Mobile telecommunications service" means
12        commercial mobile radio service, as defined in Section
13        20.3 of Title 47 of the Code of Federal Regulations as
14        in effect on June 1, 1999.
15            "Place of primary use" means the street address
16        representative of where the customer's use of the
17        telecommunications service primarily occurs, which
18        must be the residential street address or the primary
19        business street address of the customer. In the case of
20        mobile telecommunications services, "place of primary
21        use" must be within the licensed service area of the
22        home service provider.
23            "Post-paid telecommunication service" means the
24        telecommunications service obtained by making a
25        payment on a call-by-call basis either through the use
26        of a credit card or payment mechanism such as a bank

 

 

HB5146- 144 -LRB100 18631 SMS 33856 b

1        card, travel card, credit card, or debit card, or by
2        charge made to a telephone number which is not
3        associated with the origination or termination of the
4        telecommunications service. A post-paid calling
5        service includes telecommunications service, except a
6        prepaid wireless calling service, that would be a
7        prepaid calling service except it is not exclusively a
8        telecommunication service.
9            "Prepaid telecommunication service" means the
10        right to access exclusively telecommunications
11        services, which must be paid for in advance and which
12        enables the origination of calls using an access number
13        or authorization code, whether manually or
14        electronically dialed, and that is sold in
15        predetermined units or dollars of which the number
16        declines with use in a known amount.
17            "Prepaid Mobile telecommunication service" means a
18        telecommunications service that provides the right to
19        utilize mobile wireless service as well as other
20        non-telecommunication services, including but not
21        limited to ancillary services, which must be paid for
22        in advance that is sold in predetermined units or
23        dollars of which the number declines with use in a
24        known amount.
25            "Private communication service" means a
26        telecommunication service that entitles the customer

 

 

HB5146- 145 -LRB100 18631 SMS 33856 b

1        to exclusive or priority use of a communications
2        channel or group of channels between or among
3        termination points, regardless of the manner in which
4        such channel or channels are connected, and includes
5        switching capacity, extension lines, stations, and any
6        other associated services that are provided in
7        connection with the use of such channel or channels.
8            "Service address" means:
9                (a) The location of the telecommunications
10            equipment to which a customer's call is charged and
11            from which the call originates or terminates,
12            regardless of where the call is billed or paid;
13                (b) If the location in line (a) is not known,
14            service address means the origination point of the
15            signal of the telecommunications services first
16            identified by either the seller's
17            telecommunications system or in information
18            received by the seller from its service provider
19            where the system used to transport such signals is
20            not that of the seller; and
21                (c) If the locations in line (a) and line (b)
22            are not known, the service address means the
23            location of the customer's place of primary use.
24            "Telecommunications service" means the electronic
25        transmission, conveyance, or routing of voice, data,
26        audio, video, or any other information or signals to a

 

 

HB5146- 146 -LRB100 18631 SMS 33856 b

1        point, or between or among points. The term
2        "telecommunications service" includes such
3        transmission, conveyance, or routing in which computer
4        processing applications are used to act on the form,
5        code or protocol of the content for purposes of
6        transmission, conveyance or routing without regard to
7        whether such service is referred to as voice over
8        Internet protocol services or is classified by the
9        Federal Communications Commission as enhanced or value
10        added. "Telecommunications service" does not include:
11                (a) Data processing and information services
12            that allow data to be generated, acquired, stored,
13            processed, or retrieved and delivered by an
14            electronic transmission to a purchaser when such
15            purchaser's primary purpose for the underlying
16            transaction is the processed data or information;
17                (b) Installation or maintenance of wiring or
18            equipment on a customer's premises;
19                (c) Tangible personal property;
20                (d) Advertising, including but not limited to
21            directory advertising;
22                (e) Billing and collection services provided
23            to third parties;
24                (f) Internet access service;
25                (g) Radio and television audio and video
26            programming services, regardless of the medium,

 

 

HB5146- 147 -LRB100 18631 SMS 33856 b

1            including the furnishing of transmission,
2            conveyance and routing of such services by the
3            programming service provider. Radio and television
4            audio and video programming services shall include
5            but not be limited to cable service as defined in
6            47 USC 522(6) and audio and video programming
7            services delivered by commercial mobile radio
8            service providers, as defined in 47 CFR 20.3;
9                (h) "Ancillary services"; or
10                (i) Digital products "delivered
11            electronically", including but not limited to
12            software, music, video, reading materials or ring
13            tones.
14            "Vertical service" means an "ancillary service"
15        that is offered in connection with one or more
16        "telecommunications services", which offers advanced
17        calling features that allow customers to identify
18        callers and to manage multiple calls and call
19        connections, including "conference bridging services".
20            "Voice mail service" means an "ancillary service"
21        that enables the customer to store, send or receive
22        recorded messages. "Voice mail service" does not
23        include any "vertical services" that the customer may
24        be required to have in order to utilize the "voice mail
25        service".
26            (ii) Receipts from the sale of telecommunications

 

 

HB5146- 148 -LRB100 18631 SMS 33856 b

1        service sold on an individual call-by-call basis are in
2        this State if either of the following applies:
3                (a) The call both originates and terminates in
4            this State.
5                (b) The call either originates or terminates
6            in this State and the service address is located in
7            this State.
8            (iii) Receipts from the sale of postpaid
9        telecommunications service at retail are in this State
10        if the origination point of the telecommunication
11        signal, as first identified by the service provider's
12        telecommunication system or as identified by
13        information received by the seller from its service
14        provider if the system used to transport
15        telecommunication signals is not the seller's, is
16        located in this State.
17            (iv) Receipts from the sale of prepaid
18        telecommunications service or prepaid mobile
19        telecommunications service at retail are in this State
20        if the purchaser obtains the prepaid card or similar
21        means of conveyance at a location in this State.
22        Receipts from recharging a prepaid telecommunications
23        service or mobile telecommunications service is in
24        this State if the purchaser's billing information
25        indicates a location in this State.
26            (v) Receipts from the sale of private

 

 

HB5146- 149 -LRB100 18631 SMS 33856 b

1        communication services are in this State as follows:
2                (a) 100% of receipts from charges imposed at
3            each channel termination point in this State.
4                (b) 100% of receipts from charges for the total
5            channel mileage between each channel termination
6            point in this State.
7                (c) 50% of the total receipts from charges for
8            service segments when those segments are between 2
9            customer channel termination points, 1 of which is
10            located in this State and the other is located
11            outside of this State, which segments are
12            separately charged.
13                (d) The receipts from charges for service
14            segments with a channel termination point located
15            in this State and in two or more other states, and
16            which segments are not separately billed, are in
17            this State based on a percentage determined by
18            dividing the number of customer channel
19            termination points in this State by the total
20            number of customer channel termination points.
21            (vi) Receipts from charges for ancillary services
22        for telecommunications service sold to customers at
23        retail are in this State if the customer's primary
24        place of use of telecommunications services associated
25        with those ancillary services is in this State. If the
26        seller of those ancillary services cannot determine

 

 

HB5146- 150 -LRB100 18631 SMS 33856 b

1        where the associated telecommunications are located,
2        then the ancillary services shall be based on the
3        location of the purchaser.
4            (vii) Receipts to access a carrier's network or
5        from the sale of telecommunication services or
6        ancillary services for resale are in this State as
7        follows:
8                (a) 100% of the receipts from access fees
9            attributable to intrastate telecommunications
10            service that both originates and terminates in
11            this State.
12                (b) 50% of the receipts from access fees
13            attributable to interstate telecommunications
14            service if the interstate call either originates
15            or terminates in this State.
16                (c) 100% of the receipts from interstate end
17            user access line charges, if the customer's
18            service address is in this State. As used in this
19            subdivision, "interstate end user access line
20            charges" includes, but is not limited to, the
21            surcharge approved by the federal communications
22            commission and levied pursuant to 47 CFR 69.
23                (d) Gross receipts from sales of
24            telecommunication services or from ancillary
25            services for telecommunications services sold to
26            other telecommunication service providers for

 

 

HB5146- 151 -LRB100 18631 SMS 33856 b

1            resale shall be sourced to this State using the
2            apportionment concepts used for non-resale
3            receipts of telecommunications services if the
4            information is readily available to make that
5            determination. If the information is not readily
6            available, then the taxpayer may use any other
7            reasonable and consistent method.
8        (B-7) For taxable years ending on or after December 31,
9    2008, receipts from the sale of broadcasting services are
10    in this State if the broadcasting services are received in
11    this State. For purposes of this paragraph (B-7), the
12    following terms have the following meanings:
13            "Advertising revenue" means consideration received
14        by the taxpayer in exchange for broadcasting services
15        or allowing the broadcasting of commercials or
16        announcements in connection with the broadcasting of
17        film or radio programming, from sponsorships of the
18        programming, or from product placements in the
19        programming.
20            "Audience factor" means the ratio that the
21        audience or subscribers located in this State of a
22        station, a network, or a cable system bears to the
23        total audience or total subscribers for that station,
24        network, or cable system. The audience factor for film
25        or radio programming shall be determined by reference
26        to the books and records of the taxpayer or by

 

 

HB5146- 152 -LRB100 18631 SMS 33856 b

1        reference to published rating statistics provided the
2        method used by the taxpayer is consistently used from
3        year to year for this purpose and fairly represents the
4        taxpayer's activity in this State.
5            "Broadcast" or "broadcasting" or "broadcasting
6        services" means the transmission or provision of film
7        or radio programming, whether through the public
8        airwaves, by cable, by direct or indirect satellite
9        transmission, or by any other means of communication,
10        either through a station, a network, or a cable system.
11            "Film" or "film programming" means the broadcast
12        on television of any and all performances, events, or
13        productions, including but not limited to news,
14        sporting events, plays, stories, or other literary,
15        commercial, educational, or artistic works, either
16        live or through the use of video tape, disc, or any
17        other type of format or medium. Each episode of a
18        series of films produced for television shall
19        constitute separate "film" notwithstanding that the
20        series relates to the same principal subject and is
21        produced during one or more tax periods.
22            "Radio" or "radio programming" means the broadcast
23        on radio of any and all performances, events, or
24        productions, including but not limited to news,
25        sporting events, plays, stories, or other literary,
26        commercial, educational, or artistic works, either

 

 

HB5146- 153 -LRB100 18631 SMS 33856 b

1        live or through the use of an audio tape, disc, or any
2        other format or medium. Each episode in a series of
3        radio programming produced for radio broadcast shall
4        constitute a separate "radio programming"
5        notwithstanding that the series relates to the same
6        principal subject and is produced during one or more
7        tax periods.
8                (i) In the case of advertising revenue from
9            broadcasting, the customer is the advertiser and
10            the service is received in this State if the
11            commercial domicile of the advertiser is in this
12            State.
13                (ii) In the case where film or radio
14            programming is broadcast by a station, a network,
15            or a cable system for a fee or other remuneration
16            received from the recipient of the broadcast, the
17            portion of the service that is received in this
18            State is measured by the portion of the recipients
19            of the broadcast located in this State.
20            Accordingly, the fee or other remuneration for
21            such service that is included in the Illinois
22            numerator of the sales factor is the total of those
23            fees or other remuneration received from
24            recipients in Illinois. For purposes of this
25            paragraph, a taxpayer may determine the location
26            of the recipients of its broadcast using the

 

 

HB5146- 154 -LRB100 18631 SMS 33856 b

1            address of the recipient shown in its contracts
2            with the recipient or using the billing address of
3            the recipient in the taxpayer's records.
4                (iii) In the case where film or radio
5            programming is broadcast by a station, a network,
6            or a cable system for a fee or other remuneration
7            from the person providing the programming, the
8            portion of the broadcast service that is received
9            by such station, network, or cable system in this
10            State is measured by the portion of recipients of
11            the broadcast located in this State. Accordingly,
12            the amount of revenue related to such an
13            arrangement that is included in the Illinois
14            numerator of the sales factor is the total fee or
15            other total remuneration from the person providing
16            the programming related to that broadcast
17            multiplied by the Illinois audience factor for
18            that broadcast.
19                (iv) In the case where film or radio
20            programming is provided by a taxpayer that is a
21            network or station to a customer for broadcast in
22            exchange for a fee or other remuneration from that
23            customer the broadcasting service is received at
24            the location of the office of the customer from
25            which the services were ordered in the regular
26            course of the customer's trade or business.

 

 

HB5146- 155 -LRB100 18631 SMS 33856 b

1            Accordingly, in such a case the revenue derived by
2            the taxpayer that is included in the taxpayer's
3            Illinois numerator of the sales factor is the
4            revenue from such customers who receive the
5            broadcasting service in Illinois.
6                (v) In the case where film or radio programming
7            is provided by a taxpayer that is not a network or
8            station to another person for broadcasting in
9            exchange for a fee or other remuneration from that
10            person, the broadcasting service is received at
11            the location of the office of the customer from
12            which the services were ordered in the regular
13            course of the customer's trade or business.
14            Accordingly, in such a case the revenue derived by
15            the taxpayer that is included in the taxpayer's
16            Illinois numerator of the sales factor is the
17            revenue from such customers who receive the
18            broadcasting service in Illinois.
19        (B-8) Gross receipts from winnings under the Illinois
20    Lottery Law from the assignment of a prize under Section
21    13.1 of the Illinois Lottery Law are received in this
22    State. This paragraph (B-8) applies only to taxable years
23    ending on or after December 31, 2013.
24        (B-9) For taxable years ending on or after December 31,
25    2018, gross receipts from winnings from pari-mutuel
26    wagering conducted at a wagering facility licensed under

 

 

HB5146- 156 -LRB100 18631 SMS 33856 b

1    the Illinois Horse Racing Act of 1975 or from winnings from
2    gambling games conducted on a riverboat or in a casino or
3    electronic gaming facility licensed under the Illinois
4    Gambling Act are in this State.
5        (C) For taxable years ending before December 31, 2008,
6    sales, other than sales governed by paragraphs (B), (B-1),
7    (B-2), and (B-8) are in this State if:
8            (i) The income-producing activity is performed in
9        this State; or
10            (ii) The income-producing activity is performed
11        both within and without this State and a greater
12        proportion of the income-producing activity is
13        performed within this State than without this State,
14        based on performance costs.
15        (C-5) For taxable years ending on or after December 31,
16    2008, sales, other than sales governed by paragraphs (B),
17    (B-1), (B-2), (B-5), and (B-7), are in this State if any of
18    the following criteria are met:
19            (i) Sales from the sale or lease of real property
20        are in this State if the property is located in this
21        State.
22            (ii) Sales from the lease or rental of tangible
23        personal property are in this State if the property is
24        located in this State during the rental period. Sales
25        from the lease or rental of tangible personal property
26        that is characteristically moving property, including,

 

 

HB5146- 157 -LRB100 18631 SMS 33856 b

1        but not limited to, motor vehicles, rolling stock,
2        aircraft, vessels, or mobile equipment are in this
3        State to the extent that the property is used in this
4        State.
5            (iii) In the case of interest, net gains (but not
6        less than zero) and other items of income from
7        intangible personal property, the sale is in this State
8        if:
9                (a) in the case of a taxpayer who is a dealer
10            in the item of intangible personal property within
11            the meaning of Section 475 of the Internal Revenue
12            Code, the income or gain is received from a
13            customer in this State. For purposes of this
14            subparagraph, a customer is in this State if the
15            customer is an individual, trust or estate who is a
16            resident of this State and, for all other
17            customers, if the customer's commercial domicile
18            is in this State. Unless the dealer has actual
19            knowledge of the residence or commercial domicile
20            of a customer during a taxable year, the customer
21            shall be deemed to be a customer in this State if
22            the billing address of the customer, as shown in
23            the records of the dealer, is in this State; or
24                (b) in all other cases, if the
25            income-producing activity of the taxpayer is
26            performed in this State or, if the

 

 

HB5146- 158 -LRB100 18631 SMS 33856 b

1            income-producing activity of the taxpayer is
2            performed both within and without this State, if a
3            greater proportion of the income-producing
4            activity of the taxpayer is performed within this
5            State than in any other state, based on performance
6            costs.
7            (iv) Sales of services are in this State if the
8        services are received in this State. For the purposes
9        of this section, gross receipts from the performance of
10        services provided to a corporation, partnership, or
11        trust may only be attributed to a state where that
12        corporation, partnership, or trust has a fixed place of
13        business. If the state where the services are received
14        is not readily determinable or is a state where the
15        corporation, partnership, or trust receiving the
16        service does not have a fixed place of business, the
17        services shall be deemed to be received at the location
18        of the office of the customer from which the services
19        were ordered in the regular course of the customer's
20        trade or business. If the ordering office cannot be
21        determined, the services shall be deemed to be received
22        at the office of the customer to which the services are
23        billed. If the taxpayer is not taxable in the state in
24        which the services are received, the sale must be
25        excluded from both the numerator and the denominator of
26        the sales factor. The Department shall adopt rules

 

 

HB5146- 159 -LRB100 18631 SMS 33856 b

1        prescribing where specific types of service are
2        received, including, but not limited to, publishing,
3        and utility service.
4        (D) For taxable years ending on or after December 31,
5    1995, the following items of income shall not be included
6    in the numerator or denominator of the sales factor:
7    dividends; amounts included under Section 78 of the
8    Internal Revenue Code; and Subpart F income as defined in
9    Section 952 of the Internal Revenue Code. No inference
10    shall be drawn from the enactment of this paragraph (D) in
11    construing this Section for taxable years ending before
12    December 31, 1995.
13        (E) Paragraphs (B-1) and (B-2) shall apply to tax years
14    ending on or after December 31, 1999, provided that a
15    taxpayer may elect to apply the provisions of these
16    paragraphs to prior tax years. Such election shall be made
17    in the form and manner prescribed by the Department, shall
18    be irrevocable, and shall apply to all tax years; provided
19    that, if a taxpayer's Illinois income tax liability for any
20    tax year, as assessed under Section 903 prior to January 1,
21    1999, was computed in a manner contrary to the provisions
22    of paragraphs (B-1) or (B-2), no refund shall be payable to
23    the taxpayer for that tax year to the extent such refund is
24    the result of applying the provisions of paragraph (B-1) or
25    (B-2) retroactively. In the case of a unitary business
26    group, such election shall apply to all members of such

 

 

HB5146- 160 -LRB100 18631 SMS 33856 b

1    group for every tax year such group is in existence, but
2    shall not apply to any taxpayer for any period during which
3    that taxpayer is not a member of such group.
4    (b) Insurance companies.
5        (1) In general. Except as otherwise provided by
6    paragraph (2), business income of an insurance company for
7    a taxable year shall be apportioned to this State by
8    multiplying such income by a fraction, the numerator of
9    which is the direct premiums written for insurance upon
10    property or risk in this State, and the denominator of
11    which is the direct premiums written for insurance upon
12    property or risk everywhere. For purposes of this
13    subsection, the term "direct premiums written" means the
14    total amount of direct premiums written, assessments and
15    annuity considerations as reported for the taxable year on
16    the annual statement filed by the company with the Illinois
17    Director of Insurance in the form approved by the National
18    Convention of Insurance Commissioners or such other form as
19    may be prescribed in lieu thereof.
20        (2) Reinsurance. If the principal source of premiums
21    written by an insurance company consists of premiums for
22    reinsurance accepted by it, the business income of such
23    company shall be apportioned to this State by multiplying
24    such income by a fraction, the numerator of which is the
25    sum of (i) direct premiums written for insurance upon
26    property or risk in this State, plus (ii) premiums written

 

 

HB5146- 161 -LRB100 18631 SMS 33856 b

1    for reinsurance accepted in respect of property or risk in
2    this State, and the denominator of which is the sum of
3    (iii) direct premiums written for insurance upon property
4    or risk everywhere, plus (iv) premiums written for
5    reinsurance accepted in respect of property or risk
6    everywhere. For purposes of this paragraph, premiums
7    written for reinsurance accepted in respect of property or
8    risk in this State, whether or not otherwise determinable,
9    may, at the election of the company, be determined on the
10    basis of the proportion which premiums written for
11    reinsurance accepted from companies commercially domiciled
12    in Illinois bears to premiums written for reinsurance
13    accepted from all sources, or, alternatively, in the
14    proportion which the sum of the direct premiums written for
15    insurance upon property or risk in this State by each
16    ceding company from which reinsurance is accepted bears to
17    the sum of the total direct premiums written by each such
18    ceding company for the taxable year. The election made by a
19    company under this paragraph for its first taxable year
20    ending on or after December 31, 2011, shall be binding for
21    that company for that taxable year and for all subsequent
22    taxable years, and may be altered only with the written
23    permission of the Department, which shall not be
24    unreasonably withheld.
25    (c) Financial organizations.
26        (1) In general. For taxable years ending before

 

 

HB5146- 162 -LRB100 18631 SMS 33856 b

1    December 31, 2008, business income of a financial
2    organization shall be apportioned to this State by
3    multiplying such income by a fraction, the numerator of
4    which is its business income from sources within this
5    State, and the denominator of which is its business income
6    from all sources. For the purposes of this subsection, the
7    business income of a financial organization from sources
8    within this State is the sum of the amounts referred to in
9    subparagraphs (A) through (E) following, but excluding the
10    adjusted income of an international banking facility as
11    determined in paragraph (2):
12            (A) Fees, commissions or other compensation for
13        financial services rendered within this State;
14            (B) Gross profits from trading in stocks, bonds or
15        other securities managed within this State;
16            (C) Dividends, and interest from Illinois
17        customers, which are received within this State;
18            (D) Interest charged to customers at places of
19        business maintained within this State for carrying
20        debit balances of margin accounts, without deduction
21        of any costs incurred in carrying such accounts; and
22            (E) Any other gross income resulting from the
23        operation as a financial organization within this
24        State. In computing the amounts referred to in
25        paragraphs (A) through (E) of this subsection, any
26        amount received by a member of an affiliated group

 

 

HB5146- 163 -LRB100 18631 SMS 33856 b

1        (determined under Section 1504(a) of the Internal
2        Revenue Code but without reference to whether any such
3        corporation is an "includible corporation" under
4        Section 1504(b) of the Internal Revenue Code) from
5        another member of such group shall be included only to
6        the extent such amount exceeds expenses of the
7        recipient directly related thereto.
8        (2) International Banking Facility. For taxable years
9    ending before December 31, 2008:
10            (A) Adjusted Income. The adjusted income of an
11        international banking facility is its income reduced
12        by the amount of the floor amount.
13            (B) Floor Amount. The floor amount shall be the
14        amount, if any, determined by multiplying the income of
15        the international banking facility by a fraction, not
16        greater than one, which is determined as follows:
17                (i) The numerator shall be:
18                The average aggregate, determined on a
19            quarterly basis, of the financial organization's
20            loans to banks in foreign countries, to foreign
21            domiciled borrowers (except where secured
22            primarily by real estate) and to foreign
23            governments and other foreign official
24            institutions, as reported for its branches,
25            agencies and offices within the state on its
26            "Consolidated Report of Condition", Schedule A,

 

 

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1            Lines 2.c., 5.b., and 7.a., which was filed with
2            the Federal Deposit Insurance Corporation and
3            other regulatory authorities, for the year 1980,
4            minus
5                The average aggregate, determined on a
6            quarterly basis, of such loans (other than loans of
7            an international banking facility), as reported by
8            the financial institution for its branches,
9            agencies and offices within the state, on the
10            corresponding Schedule and lines of the
11            Consolidated Report of Condition for the current
12            taxable year, provided, however, that in no case
13            shall the amount determined in this clause (the
14            subtrahend) exceed the amount determined in the
15            preceding clause (the minuend); and
16                (ii) the denominator shall be the average
17            aggregate, determined on a quarterly basis, of the
18            international banking facility's loans to banks in
19            foreign countries, to foreign domiciled borrowers
20            (except where secured primarily by real estate)
21            and to foreign governments and other foreign
22            official institutions, which were recorded in its
23            financial accounts for the current taxable year.
24            (C) Change to Consolidated Report of Condition and
25        in Qualification. In the event the Consolidated Report
26        of Condition which is filed with the Federal Deposit

 

 

HB5146- 165 -LRB100 18631 SMS 33856 b

1        Insurance Corporation and other regulatory authorities
2        is altered so that the information required for
3        determining the floor amount is not found on Schedule
4        A, lines 2.c., 5.b. and 7.a., the financial institution
5        shall notify the Department and the Department may, by
6        regulations or otherwise, prescribe or authorize the
7        use of an alternative source for such information. The
8        financial institution shall also notify the Department
9        should its international banking facility fail to
10        qualify as such, in whole or in part, or should there
11        be any amendment or change to the Consolidated Report
12        of Condition, as originally filed, to the extent such
13        amendment or change alters the information used in
14        determining the floor amount.
15        (3) For taxable years ending on or after December 31,
16    2008, the business income of a financial organization shall
17    be apportioned to this State by multiplying such income by
18    a fraction, the numerator of which is its gross receipts
19    from sources in this State or otherwise attributable to
20    this State's marketplace and the denominator of which is
21    its gross receipts everywhere during the taxable year.
22    "Gross receipts" for purposes of this subparagraph (3)
23    means gross income, including net taxable gain on
24    disposition of assets, including securities and money
25    market instruments, when derived from transactions and
26    activities in the regular course of the financial

 

 

HB5146- 166 -LRB100 18631 SMS 33856 b

1    organization's trade or business. The following examples
2    are illustrative:
3            (i) Receipts from the lease or rental of real or
4        tangible personal property are in this State if the
5        property is located in this State during the rental
6        period. Receipts from the lease or rental of tangible
7        personal property that is characteristically moving
8        property, including, but not limited to, motor
9        vehicles, rolling stock, aircraft, vessels, or mobile
10        equipment are from sources in this State to the extent
11        that the property is used in this State.
12            (ii) Interest income, commissions, fees, gains on
13        disposition, and other receipts from assets in the
14        nature of loans that are secured primarily by real
15        estate or tangible personal property are from sources
16        in this State if the security is located in this State.
17            (iii) Interest income, commissions, fees, gains on
18        disposition, and other receipts from consumer loans
19        that are not secured by real or tangible personal
20        property are from sources in this State if the debtor
21        is a resident of this State.
22            (iv) Interest income, commissions, fees, gains on
23        disposition, and other receipts from commercial loans
24        and installment obligations that are not secured by
25        real or tangible personal property are from sources in
26        this State if the proceeds of the loan are to be

 

 

HB5146- 167 -LRB100 18631 SMS 33856 b

1        applied in this State. If it cannot be determined where
2        the funds are to be applied, the income and receipts
3        are from sources in this State if the office of the
4        borrower from which the loan was negotiated in the
5        regular course of business is located in this State. If
6        the location of this office cannot be determined, the
7        income and receipts shall be excluded from the
8        numerator and denominator of the sales factor.
9            (v) Interest income, fees, gains on disposition,
10        service charges, merchant discount income, and other
11        receipts from credit card receivables are from sources
12        in this State if the card charges are regularly billed
13        to a customer in this State.
14            (vi) Receipts from the performance of services,
15        including, but not limited to, fiduciary, advisory,
16        and brokerage services, are in this State if the
17        services are received in this State within the meaning
18        of subparagraph (a)(3)(C-5)(iv) of this Section.
19            (vii) Receipts from the issuance of travelers
20        checks and money orders are from sources in this State
21        if the checks and money orders are issued from a
22        location within this State.
23            (viii) Receipts from investment assets and
24        activities and trading assets and activities are
25        included in the receipts factor as follows:
26                (1) Interest, dividends, net gains (but not

 

 

HB5146- 168 -LRB100 18631 SMS 33856 b

1            less than zero) and other income from investment
2            assets and activities from trading assets and
3            activities shall be included in the receipts
4            factor. Investment assets and activities and
5            trading assets and activities include but are not
6            limited to: investment securities; trading account
7            assets; federal funds; securities purchased and
8            sold under agreements to resell or repurchase;
9            options; futures contracts; forward contracts;
10            notional principal contracts such as swaps;
11            equities; and foreign currency transactions. With
12            respect to the investment and trading assets and
13            activities described in subparagraphs (A) and (B)
14            of this paragraph, the receipts factor shall
15            include the amounts described in such
16            subparagraphs.
17                    (A) The receipts factor shall include the
18                amount by which interest from federal funds
19                sold and securities purchased under resale
20                agreements exceeds interest expense on federal
21                funds purchased and securities sold under
22                repurchase agreements.
23                    (B) The receipts factor shall include the
24                amount by which interest, dividends, gains and
25                other income from trading assets and
26                activities, including but not limited to

 

 

HB5146- 169 -LRB100 18631 SMS 33856 b

1                assets and activities in the matched book, in
2                the arbitrage book, and foreign currency
3                transactions, exceed amounts paid in lieu of
4                interest, amounts paid in lieu of dividends,
5                and losses from such assets and activities.
6                (2) The numerator of the receipts factor
7            includes interest, dividends, net gains (but not
8            less than zero), and other income from investment
9            assets and activities and from trading assets and
10            activities described in paragraph (1) of this
11            subsection that are attributable to this State.
12                    (A) The amount of interest, dividends, net
13                gains (but not less than zero), and other
14                income from investment assets and activities
15                in the investment account to be attributed to
16                this State and included in the numerator is
17                determined by multiplying all such income from
18                such assets and activities by a fraction, the
19                numerator of which is the gross income from
20                such assets and activities which are properly
21                assigned to a fixed place of business of the
22                taxpayer within this State and the denominator
23                of which is the gross income from all such
24                assets and activities.
25                    (B) The amount of interest from federal
26                funds sold and purchased and from securities

 

 

HB5146- 170 -LRB100 18631 SMS 33856 b

1                purchased under resale agreements and
2                securities sold under repurchase agreements
3                attributable to this State and included in the
4                numerator is determined by multiplying the
5                amount described in subparagraph (A) of
6                paragraph (1) of this subsection from such
7                funds and such securities by a fraction, the
8                numerator of which is the gross income from
9                such funds and such securities which are
10                properly assigned to a fixed place of business
11                of the taxpayer within this State and the
12                denominator of which is the gross income from
13                all such funds and such securities.
14                    (C) The amount of interest, dividends,
15                gains, and other income from trading assets and
16                activities, including but not limited to
17                assets and activities in the matched book, in
18                the arbitrage book and foreign currency
19                transactions (but excluding amounts described
20                in subparagraphs (A) or (B) of this paragraph),
21                attributable to this State and included in the
22                numerator is determined by multiplying the
23                amount described in subparagraph (B) of
24                paragraph (1) of this subsection by a fraction,
25                the numerator of which is the gross income from
26                such trading assets and activities which are

 

 

HB5146- 171 -LRB100 18631 SMS 33856 b

1                properly assigned to a fixed place of business
2                of the taxpayer within this State and the
3                denominator of which is the gross income from
4                all such assets and activities.
5                    (D) Properly assigned, for purposes of
6                this paragraph (2) of this subsection, means
7                the investment or trading asset or activity is
8                assigned to the fixed place of business with
9                which it has a preponderance of substantive
10                contacts. An investment or trading asset or
11                activity assigned by the taxpayer to a fixed
12                place of business without the State shall be
13                presumed to have been properly assigned if:
14                        (i) the taxpayer has assigned, in the
15                    regular course of its business, such asset
16                    or activity on its records to a fixed place
17                    of business consistent with federal or
18                    state regulatory requirements;
19                        (ii) such assignment on its records is
20                    based upon substantive contacts of the
21                    asset or activity to such fixed place of
22                    business; and
23                        (iii) the taxpayer uses such records
24                    reflecting assignment of such assets or
25                    activities for the filing of all state and
26                    local tax returns for which an assignment

 

 

HB5146- 172 -LRB100 18631 SMS 33856 b

1                    of such assets or activities to a fixed
2                    place of business is required.
3                    (E) The presumption of proper assignment
4                of an investment or trading asset or activity
5                provided in subparagraph (D) of paragraph (2)
6                of this subsection may be rebutted upon a
7                showing by the Department, supported by a
8                preponderance of the evidence, that the
9                preponderance of substantive contacts
10                regarding such asset or activity did not occur
11                at the fixed place of business to which it was
12                assigned on the taxpayer's records. If the
13                fixed place of business that has a
14                preponderance of substantive contacts cannot
15                be determined for an investment or trading
16                asset or activity to which the presumption in
17                subparagraph (D) of paragraph (2) of this
18                subsection does not apply or with respect to
19                which that presumption has been rebutted, that
20                asset or activity is properly assigned to the
21                state in which the taxpayer's commercial
22                domicile is located. For purposes of this
23                subparagraph (E), it shall be presumed,
24                subject to rebuttal, that taxpayer's
25                commercial domicile is in the state of the
26                United States or the District of Columbia to

 

 

HB5146- 173 -LRB100 18631 SMS 33856 b

1                which the greatest number of employees are
2                regularly connected with the management of the
3                investment or trading income or out of which
4                they are working, irrespective of where the
5                services of such employees are performed, as of
6                the last day of the taxable year.
7        (4) (Blank).
8        (5) (Blank).
9    (c-1) Federally regulated exchanges. For taxable years
10ending on or after December 31, 2012, business income of a
11federally regulated exchange shall, at the option of the
12federally regulated exchange, be apportioned to this State by
13multiplying such income by a fraction, the numerator of which
14is its business income from sources within this State, and the
15denominator of which is its business income from all sources.
16For purposes of this subsection, the business income within
17this State of a federally regulated exchange is the sum of the
18following:
19        (1) Receipts attributable to transactions executed on
20    a physical trading floor if that physical trading floor is
21    located in this State.
22        (2) Receipts attributable to all other matching,
23    execution, or clearing transactions, including without
24    limitation receipts from the provision of matching,
25    execution, or clearing services to another entity,
26    multiplied by (i) for taxable years ending on or after

 

 

HB5146- 174 -LRB100 18631 SMS 33856 b

1    December 31, 2012 but before December 31, 2013, 63.77%; and
2    (ii) for taxable years ending on or after December 31,
3    2013, 27.54%.
4        (3) All other receipts not governed by subparagraphs
5    (1) or (2) of this subsection (c-1), to the extent the
6    receipts would be characterized as "sales in this State"
7    under item (3) of subsection (a) of this Section.
8    "Federally regulated exchange" means (i) a "registered
9entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
10or (C), (ii) an "exchange" or "clearing agency" within the
11meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
12entities regulated under any successor regulatory structure to
13the foregoing, and (iv) all taxpayers who are members of the
14same unitary business group as a federally regulated exchange,
15determined without regard to the prohibition in Section
161501(a)(27) of this Act against including in a unitary business
17group taxpayers who are ordinarily required to apportion
18business income under different subsections of this Section;
19provided that this subparagraph (iv) shall apply only if 50% or
20more of the business receipts of the unitary business group
21determined by application of this subparagraph (iv) for the
22taxable year are attributable to the matching, execution, or
23clearing of transactions conducted by an entity described in
24subparagraph (i), (ii), or (iii) of this paragraph.
25    In no event shall the Illinois apportionment percentage
26computed in accordance with this subsection (c-1) for any

 

 

HB5146- 175 -LRB100 18631 SMS 33856 b

1taxpayer for any tax year be less than the Illinois
2apportionment percentage computed under this subsection (c-1)
3for that taxpayer for the first full tax year ending on or
4after December 31, 2013 for which this subsection (c-1) applied
5to the taxpayer.
6    (d) Transportation services. For taxable years ending
7before December 31, 2008, business income derived from
8furnishing transportation services shall be apportioned to
9this State in accordance with paragraphs (1) and (2):
10        (1) Such business income (other than that derived from
11    transportation by pipeline) shall be apportioned to this
12    State by multiplying such income by a fraction, the
13    numerator of which is the revenue miles of the person in
14    this State, and the denominator of which is the revenue
15    miles of the person everywhere. For purposes of this
16    paragraph, a revenue mile is the transportation of 1
17    passenger or 1 net ton of freight the distance of 1 mile
18    for a consideration. Where a person is engaged in the
19    transportation of both passengers and freight, the
20    fraction above referred to shall be determined by means of
21    an average of the passenger revenue mile fraction and the
22    freight revenue mile fraction, weighted to reflect the
23    person's
24            (A) relative railway operating income from total
25        passenger and total freight service, as reported to the
26        Interstate Commerce Commission, in the case of

 

 

HB5146- 176 -LRB100 18631 SMS 33856 b

1        transportation by railroad, and
2            (B) relative gross receipts from passenger and
3        freight transportation, in case of transportation
4        other than by railroad.
5        (2) Such business income derived from transportation
6    by pipeline shall be apportioned to this State by
7    multiplying such income by a fraction, the numerator of
8    which is the revenue miles of the person in this State, and
9    the denominator of which is the revenue miles of the person
10    everywhere. For the purposes of this paragraph, a revenue
11    mile is the transportation by pipeline of 1 barrel of oil,
12    1,000 cubic feet of gas, or of any specified quantity of
13    any other substance, the distance of 1 mile for a
14    consideration.
15        (3) For taxable years ending on or after December 31,
16    2008, business income derived from providing
17    transportation services other than airline services shall
18    be apportioned to this State by using a fraction, (a) the
19    numerator of which shall be (i) all receipts from any
20    movement or shipment of people, goods, mail, oil, gas, or
21    any other substance (other than by airline) that both
22    originates and terminates in this State, plus (ii) that
23    portion of the person's gross receipts from movements or
24    shipments of people, goods, mail, oil, gas, or any other
25    substance (other than by airline) that originates in one
26    state or jurisdiction and terminates in another state or

 

 

HB5146- 177 -LRB100 18631 SMS 33856 b

1    jurisdiction, that is determined by the ratio that the
2    miles traveled in this State bears to total miles
3    everywhere and (b) the denominator of which shall be all
4    revenue derived from the movement or shipment of people,
5    goods, mail, oil, gas, or any other substance (other than
6    by airline). Where a taxpayer is engaged in the
7    transportation of both passengers and freight, the
8    fraction above referred to shall first be determined
9    separately for passenger miles and freight miles. Then an
10    average of the passenger miles fraction and the freight
11    miles fraction shall be weighted to reflect the taxpayer's:
12            (A) relative railway operating income from total
13        passenger and total freight service, as reported to the
14        Surface Transportation Board, in the case of
15        transportation by railroad; and
16            (B) relative gross receipts from passenger and
17        freight transportation, in case of transportation
18        other than by railroad.
19        (4) For taxable years ending on or after December 31,
20    2008, business income derived from furnishing airline
21    transportation services shall be apportioned to this State
22    by multiplying such income by a fraction, the numerator of
23    which is the revenue miles of the person in this State, and
24    the denominator of which is the revenue miles of the person
25    everywhere. For purposes of this paragraph, a revenue mile
26    is the transportation of one passenger or one net ton of

 

 

HB5146- 178 -LRB100 18631 SMS 33856 b

1    freight the distance of one mile for a consideration. If a
2    person is engaged in the transportation of both passengers
3    and freight, the fraction above referred to shall be
4    determined by means of an average of the passenger revenue
5    mile fraction and the freight revenue mile fraction,
6    weighted to reflect the person's relative gross receipts
7    from passenger and freight airline transportation.
8    (e) Combined apportionment. Where 2 or more persons are
9engaged in a unitary business as described in subsection
10(a)(27) of Section 1501, a part of which is conducted in this
11State by one or more members of the group, the business income
12attributable to this State by any such member or members shall
13be apportioned by means of the combined apportionment method.
14    (f) Alternative allocation. If the allocation and
15apportionment provisions of subsections (a) through (e) and of
16subsection (h) do not, for taxable years ending before December
1731, 2008, fairly represent the extent of a person's business
18activity in this State, or, for taxable years ending on or
19after December 31, 2008, fairly represent the market for the
20person's goods, services, or other sources of business income,
21the person may petition for, or the Director may, without a
22petition, permit or require, in respect of all or any part of
23the person's business activity, if reasonable:
24        (1) Separate accounting;
25        (2) The exclusion of any one or more factors;
26        (3) The inclusion of one or more additional factors

 

 

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1    which will fairly represent the person's business
2    activities or market in this State; or
3        (4) The employment of any other method to effectuate an
4    equitable allocation and apportionment of the person's
5    business income.
6    (g) Cross reference. For allocation of business income by
7residents, see Section 301(a).
8    (h) For tax years ending on or after December 31, 1998, the
9apportionment factor of persons who apportion their business
10income to this State under subsection (a) shall be equal to:
11        (1) for tax years ending on or after December 31, 1998
12    and before December 31, 1999, 16 2/3% of the property
13    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
14    the sales factor;
15        (2) for tax years ending on or after December 31, 1999
16    and before December 31, 2000, 8 1/3% of the property factor
17    plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
18    factor;
19        (3) for tax years ending on or after December 31, 2000,
20    the sales factor.
21If, in any tax year ending on or after December 31, 1998 and
22before December 31, 2000, the denominator of the payroll,
23property, or sales factor is zero, the apportionment factor
24computed in paragraph (1) or (2) of this subsection for that
25year shall be divided by an amount equal to 100% minus the
26percentage weight given to each factor whose denominator is

 

 

HB5146- 180 -LRB100 18631 SMS 33856 b

1equal to zero.
2(Source: P.A. 99-642, eff. 7-28-16; 100-201, eff. 8-18-17.)
 
3    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
4    Sec. 710. Withholding from lottery winnings.
5    (a) In general.
6        (1) Any person making a payment to a resident or
7    nonresident of winnings under the Illinois Lottery Law and
8    not required to withhold Illinois income tax from such
9    payment under Subsection (b) of Section 701 of this Act
10    because those winnings are not subject to Federal income
11    tax withholding, must withhold Illinois income tax from
12    such payment at a rate equal to the percentage tax rate for
13    individuals provided in subsection (b) of Section 201,
14    provided that withholding is not required if such payment
15    of winnings is less than $1,000.
16        (2) In the case of an assignment of a lottery prize
17    under Section 13.1 of the Illinois Lottery Law, any person
18    making a payment of the purchase price after December 31,
19    2013, shall withhold from the amount of each payment at a
20    rate equal to the percentage tax rate for individuals
21    provided in subsection (b) of Section 201.
22        (3) Any person making a payment after December 31, 2018
23    to a resident or nonresident of winnings from pari-mutuel
24    wagering conducted at a wagering facility licensed under
25    the Illinois Horse Racing Act of 1975 or from gambling

 

 

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1    games conducted on a riverboat or in a casino or electronic
2    gaming facility licensed under the Illinois Gambling Act
3    must withhold Illinois income tax from such payment at a
4    rate equal to the percentage tax rate for individuals
5    provided in subsection (b) of Section 201, provided that
6    the person making the payment is required to withhold under
7    Section 3402(q) of the Internal Revenue Code.
8    (b) Credit for taxes withheld. Any amount withheld under
9Subsection (a) shall be a credit against the Illinois income
10tax liability of the person to whom the payment of winnings was
11made for the taxable year in which that person incurred an
12Illinois income tax liability with respect to those winnings.
13(Source: P.A. 98-496, eff. 1-1-14.)
 
14    Section 90-23. The Property Tax Code is amended by adding
15Section 15-144 as follows:
 
16    (35 ILCS 200/15-144 new)
17    Sec. 15-144. Chicago Casino Development Authority. All
18property owned by the Chicago Casino Development Authority is
19exempt. Any property owned by the Chicago Casino Development
20Authority and leased to any other entity is not exempt.
 
21    Section 90-24. The Illinois Municipal Code is amended by
22adding Section 8-10-2.6 as follows:
 

 

 

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1    (65 ILCS 5/8-10-2.6 new)
2    Sec. 8-10-2.6. Chicago Casino Development Authority.
3Except as otherwise provided in the Chicago Casino Development
4Authority Act, this Division 10 applies to purchase orders and
5contracts relating to the Chicago Casino Development
6Authority.
 
7    Section 90-25. The Joliet Regional Port District Act is
8amended by changing Section 5.1 as follows:
 
9    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
10    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
11any other provision of this Act, the District may not regulate
12the operation, conduct, or navigation of any riverboat gambling
13casino licensed under the Illinois Riverboat Gambling Act, and
14the District may not license, tax, or otherwise levy any
15assessment of any kind on any riverboat gambling casino
16licensed under the Illinois Riverboat Gambling Act. The General
17Assembly declares that the powers to regulate the operation,
18conduct, and navigation of riverboat gambling casinos and to
19license, tax, and levy assessments upon riverboat gambling
20casinos are exclusive powers of the State of Illinois and the
21Illinois Gaming Board as provided in the Illinois Riverboat
22Gambling Act.
23(Source: P.A. 87-1175.)
 

 

 

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

 

 

HB5146- 184 -LRB100 18631 SMS 33856 b

1limited purpose branch unless authorized by the Director.
2    (f) The Director shall make and enforce reasonable rules
3for the conduct of a limited purpose branch.
4    (g) A limited purpose branch may not be located within
51,000 feet of a facility operated by an inter-track wagering
6licensee or an organization licensee subject to the Illinois
7Horse Racing Act of 1975, on a riverboat or in a casino subject
8to the Illinois Riverboat Gambling Act, or within 1,000 feet of
9the location at which the riverboat docks or within 1,000 feet
10of a casino.
11(Source: P.A. 90-437, eff. 1-1-98.)
 
12    Section 90-35. The Illinois Horse Racing Act of 1975 is
13amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
1420, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,
15and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
1634.3, and 56 as follows:
 
17    (230 ILCS 5/1.2)
18    Sec. 1.2. Legislative intent. This Act is intended to
19benefit the people of the State of Illinois by encouraging the
20breeding and production of race horses, assisting economic
21development and promoting Illinois tourism. The General
22Assembly finds and declares it to be the public policy of the
23State of Illinois to:
24    (a) support and enhance Illinois' horse racing industry,

 

 

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

 

 

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

 

 

HB5146- 187 -LRB100 18631 SMS 33856 b

1that is conducted at a race track pursuant to an electronic
2gaming license.
 
3    (230 ILCS 5/3.35 new)
4    Sec. 3.35. Electronic gaming license. "Electronic gaming
5license" means a license issued by the Illinois Gaming Board
6under Section 7.7 of the Illinois Gambling Act authorizing
7electronic gaming at an electronic gaming facility.
 
8    (230 ILCS 5/3.36 new)
9    Sec. 3.36. Electronic gaming facility. "Electronic gaming
10facility" means that portion of an organization licensee's race
11track facility at which electronic gaming is conducted.
 
12    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
13    Sec. 6. Restrictions on Board members.
14    (a) No person shall be appointed a member of the Board or
15continue to be a member of the Board if the person or any
16member of their immediate family is a member of the Board of
17Directors, employee, or financially interested in any of the
18following: (i) any licensee or other person who has applied for
19racing dates to the Board, or the operations thereof including,
20but not limited to, concessions, data processing, track
21maintenance, track security, and pari-mutuel operations,
22located, scheduled or doing business within the State of
23Illinois, (ii) any race horse competing at a meeting under the

 

 

HB5146- 188 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 189 -LRB100 18631 SMS 33856 b

1defined in Section 2 of the Lobbyist Registration Act), (ii)
2relating to collective bargaining, or (iii) that are otherwise
3in furtherance of the person's official State duties or
4governmental and public service functions.
5    "Political organization" means a party, committee,
6association, fund, or other organization (whether or not
7incorporated) that is required to file a statement of
8organization with the State Board of Elections or county clerk
9under Section 9-3 of the Election Code, but only with regard to
10those activities that require filing with the State Board of
11Elections or county clerk.
12    (d) Board members and employees may not engage in
13communications or any activity that may cause or have the
14appearance of causing a conflict of interest. A conflict of
15interest exists if a situation influences or creates the
16appearance that it may influence judgment or performance of
17regulatory duties and responsibilities. This prohibition shall
18extend to any act identified by Board action that, in the
19judgment of the Board, could represent the potential for or the
20appearance of a conflict of interest.
21    (e) Board members and employees may not accept any gift,
22gratuity, service, compensation, travel, lodging, or thing of
23value, with the exception of unsolicited items of an incidental
24nature, from any person, corporation, limited liability
25company, or entity doing business with the Board.
26    (f) A Board member or employee shall not use or attempt to

 

 

HB5146- 190 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 191 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 192 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 193 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 194 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 195 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 196 -LRB100 18631 SMS 33856 b

1a detriment or impediment to horse racing or wagering.
2Beginning on the date when any organization licensee begins
3conducting electronic gaming pursuant to an electronic gaming
4license issued under the Illinois Gambling Act, the power
5granted to the Board pursuant to this subsection (l) shall
6authorize the Board to impose penalties of up to $10,000
7against an individual and up to $25,000 against a licensee. All
8such civil penalties shall be deposited into the Horse Racing
9Fund.
10    (m) The Board is vested with the power to prescribe a form
11to be used by licensees as an application for employment for
12employees of each licensee.
13    (n) The Board shall have the power to issue a license to
14any county fair, or its agent, authorizing the conduct of the
15pari-mutuel system of wagering. The Board is vested with the
16full power to promulgate reasonable rules, regulations and
17conditions under which all horse race meetings licensed
18pursuant to this subsection shall be held and conducted,
19including rules, regulations and conditions for the conduct of
20the pari-mutuel system of wagering. The rules, regulations and
21conditions shall provide for the prevention of practices
22detrimental to the public interest and for the best interests
23of horse racing, and shall prescribe penalties for violations
24thereof. Any authority granted the Board under this Act shall
25extend to its jurisdiction and supervision over county fairs,
26or their agents, licensed pursuant to this subsection. However,

 

 

HB5146- 197 -LRB100 18631 SMS 33856 b

1the Board may waive any provision of this Act or its rules or
2regulations which would otherwise apply to such county fairs or
3their agents.
4    (o) Whenever the Board is authorized or required by law to
5consider some aspect of criminal history record information for
6the purpose of carrying out its statutory powers and
7responsibilities, then, upon request and payment of fees in
8conformance with the requirements of Section 2605-400 of the
9Department of State Police Law (20 ILCS 2605/2605-400), the
10Department of State Police is authorized to furnish, pursuant
11to positive identification, such information contained in
12State files as is necessary to fulfill the request.
13    (p) To insure the convenience, comfort, and wagering
14accessibility of race track patrons, to provide for the
15maximization of State revenue, and to generate increases in
16purse allotments to the horsemen, the Board shall require any
17licensee to staff the pari-mutuel department with adequate
18personnel.
19(Source: P.A. 97-1060, eff. 8-24-12.)
 
20    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
21    Sec. 15. (a) The Board shall, in its discretion, issue
22occupation licenses to horse owners, trainers, harness
23drivers, jockeys, agents, apprentices, grooms, stable foremen,
24exercise persons, veterinarians, valets, blacksmiths,
25concessionaires and others designated by the Board whose work,

 

 

HB5146- 198 -LRB100 18631 SMS 33856 b

1in whole or in part, is conducted upon facilities within the
2State. Such occupation licenses will be obtained prior to the
3persons engaging in their vocation upon such facilities. The
4Board shall not license pari-mutuel clerks, parking
5attendants, security guards and employees of concessionaires.
6No occupation license shall be required of any person who works
7at facilities within this State as a pari-mutuel clerk, parking
8attendant, security guard or as an employee of a
9concessionaire. Concessionaires of the Illinois State Fair and
10DuQuoin State Fair and employees of the Illinois Department of
11Agriculture shall not be required to obtain an occupation
12license by the Board.
13    (b) Each application for an occupation license shall be on
14forms prescribed by the Board. Such license, when issued, shall
15be for the period ending December 31 of each year, except that
16the Board in its discretion may grant 3-year licenses. The
17application shall be accompanied by a fee of not more than $25
18per year or, in the case of 3-year occupation license
19applications, a fee of not more than $60. Each applicant shall
20set forth in the application his full name and address, and if
21he had been issued prior occupation licenses or has been
22licensed in any other state under any other name, such name,
23his age, whether or not a permit or license issued to him in
24any other state has been suspended or revoked and if so whether
25such suspension or revocation is in effect at the time of the
26application, and such other information as the Board may

 

 

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1require. Fees for registration of stable names shall not exceed
2$50.00. Beginning on the date when any organization licensee
3begins conducting electronic gaming pursuant to an electronic
4gambling license issued under the Illinois Gambling Act, the
5fee for registration of stable names shall not exceed $150, and
6the application fee for an occupation license shall not exceed
7$75, per year or, in the case of a 3-year occupation license
8application, the fee shall not exceed $180.
9    (c) The Board may in its discretion refuse an occupation
10license to any person:
11        (1) who has been convicted of a crime;
12        (2) who is unqualified to perform the duties required
13    of such applicant;
14        (3) who fails to disclose or states falsely any
15    information called for in the application;
16        (4) who has been found guilty of a violation of this
17    Act or of the rules and regulations of the Board; or
18        (5) whose license or permit has been suspended, revoked
19    or denied for just cause in any other state.
20    (d) The Board may suspend or revoke any occupation license:
21        (1) for violation of any of the provisions of this Act;
22    or
23        (2) for violation of any of the rules or regulations of
24    the Board; or
25        (3) for any cause which, if known to the Board, would
26    have justified the Board in refusing to issue such

 

 

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1    occupation license; or
2        (4) for any other just cause.
3    (e)   Each applicant shall submit his or her fingerprints
4to the Department of State Police in the form and manner
5prescribed by the Department of State Police. These
6fingerprints shall be checked against the fingerprint records
7now and hereafter filed in the Department of State Police and
8Federal Bureau of Investigation criminal history records
9databases. The Department of State Police shall charge a fee
10for conducting the criminal history records check, which shall
11be deposited in the State Police Services Fund and shall not
12exceed the actual cost of the records check. The Department of
13State Police shall furnish, pursuant to positive
14identification, records of conviction to the Board. Each
15applicant for licensure shall submit with his occupation
16license application, on forms provided by the Board, 2 sets of
17his fingerprints. All such applicants shall appear in person at
18the location designated by the Board for the purpose of
19submitting such sets of fingerprints; however, with the prior
20approval of a State steward, an applicant may have such sets of
21fingerprints taken by an official law enforcement agency and
22submitted to the Board.
23    (f) The Board may, in its discretion, issue an occupation
24license without submission of fingerprints if an applicant has
25been duly licensed in another recognized racing jurisdiction
26after submitting fingerprints that were subjected to a Federal

 

 

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1Bureau of Investigation criminal history background check in
2that jurisdiction.
3    (g) Beginning on the date when any organization licensee
4begins conducting electronic gaming pursuant to an electronic
5gaming license issued under the Illinois Gambling Act, the
6Board may charge each applicant a reasonable non-refundable fee
7to defray the costs associated with the background
8investigation conducted by the Board. This fee shall be
9exclusive of any other fee or fees charged in connection with
10an application for and, if applicable, the issuance of, an
11electronic gaming license. If the costs of the investigation
12exceed the amount of the fee charged, the Board shall
13immediately notify the applicant of the additional amount owed,
14payment of which must be submitted to the Board within 7 days
15after such notification. All information, records, interviews,
16reports, statements, memoranda, or other data supplied to or
17used by the Board in the course of its review or investigation
18of an applicant for a license or renewal under this Act shall
19be privileged, strictly confidential, and shall be used only
20for the purpose of evaluating an applicant for a license or a
21renewal. Such information, records, interviews, reports,
22statements, memoranda, or other data shall not be admissible as
23evidence, nor discoverable, in any action of any kind in any
24court or before any tribunal, board, agency, or person, except
25for any action deemed necessary by the Board.
26(Source: P.A. 93-418, eff. 1-1-04.)
 

 

 

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1    (230 ILCS 5/18)  (from Ch. 8, par. 37-18)
2    Sec. 18. (a) Together with its application, each applicant
3for racing dates shall deliver to the Board a certified check
4or bank draft payable to the order of the Board for $1,000. In
5the event the applicant applies for racing dates in 2 or 3
6successive calendar years as provided in subsection (b) of
7Section 21, the fee shall be $2,000. Filing fees shall not be
8refunded in the event the application is denied. Beginning on
9the date when any organization licensee begins conducting
10electronic gaming pursuant to an electronic gaming license
11issued under the Illinois Gambling Act, the application fee for
12racing dates imposed by this subsection (a) shall be $10,000
13and the application fee for racing dates in 2 or 3 successive
14calendar years as provided in subsection (b) of Section 21
15shall be $20,000. All filing fees shall be deposited into the
16Horse Racing Fund.
17    (b) In addition to the filing fee imposed by subsection (a)
18of $1000 and the fees provided in subsection (j) of Section 20,
19each organization licensee shall pay a license fee of $100 for
20each racing program on which its daily pari-mutuel handle is
21$400,000 or more but less than $700,000, and a license fee of
22$200 for each racing program on which its daily pari-mutuel
23handle is $700,000 or more. The additional fees required to be
24paid under this Section by this amendatory Act of 1982 shall be
25remitted by the organization licensee to the Illinois Racing

 

 

HB5146- 203 -LRB100 18631 SMS 33856 b

1Board with each day's graduated privilege tax or pari-mutuel
2tax and breakage as provided under Section 27. Beginning on the
3date when any organization licensee begins conducting
4electronic gaming pursuant to an electronic gaming license
5issued under the Illinois Gambling Act, the license fee imposed
6by this subsection (b) shall be $200 for each racing program on
7which the organization licensee's daily pari-mutuel handle is
8$100,000 or more, but less than $400,000, and the license fee
9imposed by this subsection (b) shall be $400 for each racing
10program on which the organization licensee's daily pari-mutuel
11handle is $400,000 or more.
12    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
13Municipal Code," approved May 29, 1961, as now or hereafter
14amended, shall not apply to any license under this Act.
15(Source: P.A. 97-1060, eff. 8-24-12.)
 
16    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
17    Sec. 19. (a) No organization license may be granted to
18conduct a horse race meeting:
19        (1) except as provided in subsection (c) of Section 21
20    of this Act, to any person at any place within 35 miles of
21    any other place licensed by the Board to hold a race
22    meeting on the same date during the same hours, the mileage
23    measurement used in this subsection (a) shall be certified
24    to the Board by the Bureau of Systems and Services in the
25    Illinois Department of Transportation as the most commonly

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1such meeting, the Board shall announce the award of the racing
2meets, live racing schedule, and designation of host track to
3the applicants and its approval or disapproval of each
4application. No announcement shall be considered binding until
5a formal order is executed by the Board, which shall be
6executed no later than October 15 of that prior year. Absent
7the agreement of the affected organization licensees, the Board
8shall not grant overlapping race meetings to 2 or more tracks
9that are within 100 miles of each other to conduct the
10thoroughbred racing.
11    (e-1) In awarding standardbred racing dates for calendar
12year 2019, the Board shall award at least 160 racing dates, and
13each organization licensee shall average at least 10 races for
14each racing date awarded. In awarding standardbred racing dates
15for calendar year 2020, the Board shall award at least 200
16racing dates, and each organization licensee shall average at
17least 11 races for each racing date awarded. In awarding
18standardbred racing dates for calendar year 2021 and
19thereafter, the Board shall award at least 260 racing dates,
20and each organization licensee shall average at least 11 races
21for each racing date awarded unless a lesser schedule of live
22racing is a result of an agreement with the organization
23representing the largest number of standardbred owners,
24breeders, trainers, drivers, caretakers in the State.
25Standardbred racing conducted in Sangamon County shall not be
26considered races under this subsection (e-1).

 

 

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1    (e-2) In awarding racing dates for calendar year 2019 and
2thereafter, the Board shall award thoroughbred racing days to
3Cook County organization licensees commensurate with these
4organization licensees' requirement that they shall run at
5least 1,950 thoroughbred races in the aggregate, so long as 2
6organization licensees are conducting electronic gaming
7operations. Additionally, if the organization licensees that
8run thoroughbred races in Cook County are conducting electronic
9gaming operations, the Board shall increase the number of
10thoroughbred races to be run in Cook County in the aggregate to
11at least the following:
12        (i) 2,050 races in any year following the most recent
13    preceding complete calendar year when the combined
14    adjusted gross receipts of the electronic gaming licensees
15    operating at Cook County race tracks total in excess of
16    $200,000,000, but do not exceed $250,000,000;
17        (ii) 2,125 races in any year following the most recent
18    preceding complete calendar year when the combined
19    adjusted gross receipts of the electronic gaming licensees
20    operating at Cook County race tracks total in excess of
21    $250,000,000, but do not exceed $300,000,000;
22        (iii) 2,200 races in any year following the most recent
23    preceding complete calendar year when the combined
24    adjusted gross receipts of the electronic gaming licensees
25    operating at Cook County race tracks total in excess of
26    $300,000,000, but do not exceed $350,000,000;

 

 

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1        (iv) 2,300 races in any year following the most recent
2    preceding complete calendar year when the combined
3    adjusted gross receipts of the electronic gaming licensees
4    operating at Cook County race tracks total in excess of
5    $350,000,000, but do not exceed $400,000,000;
6        (v) 2,375 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    $400,000,000, but do not exceed $450,000,000;
11        (vi) 2,450 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    $450,000,000, but do not exceed $500,000,000;
16        (vii) 2,550 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 exceeds $500,000,000.
20    In awarding racing dates under this subsection (e-2), the
21Board shall have the discretion to allocate those thoroughbred
22racing dates among these Cook County organization licensees.
23    (e-3) In awarding racing dates for calendar year 2019 and
24thereafter in connection with a race track in Madison County,
25the Board shall award racing dates and such organization
26licensee shall run at least 700 thoroughbred races at the race

 

 

HB5146- 211 -LRB100 18631 SMS 33856 b

1track in Madison County each year.
2    Notwithstanding Section 7.7 of the Illinois Gambling Act or
3any provision of this Act other than subsection (e-4.5), for
4each calendar year for which an electronic gaming licensee
5located in Madison County requests racing dates resulting in
6less than 700 live thoroughbred races at its race track
7facility, the electronic gaming licensee may not conduct
8electronic gaming for the calendar year of such requested live
9races.
10    (e-4) Notwithstanding the provisions of Section 7.7 of the
11Illinois Gambling Act or any provision of this Act other than
12subsections (e-3) and (e-4.5), for each calendar year for which
13an electronic gaming licensee requests thoroughbred racing
14dates which results in a number of live races under its
15organization license that is less than the total number of live
16races which it conducted in 2017 at its race track facility,
17the electronic gaming licensee may not conduct electronic
18gaming for the calendar year of such requested live races.
19    (e-4.1) Notwithstanding the provisions of Section 7.7 of
20the Illinois Gambling Act or any provision of this Act other
21than subsections (e-3) and (e-4.5), for each calendar year for
22which an organization licensee requests racing dates for
23standardbred racing which results in a number of live races
24that is less than the total number of live races required in
25subsection (e-1), the electronic gaming licensee may not
26conduct electronic gaming for the calendar year of such

 

 

HB5146- 212 -LRB100 18631 SMS 33856 b

1requested live races.
2    (e-4.5) 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), (e-2), and (e-3) are
7in the best interest of the sport of horse racing, and that
8such guarantees may only be reduced in the limited
9circumstances described in this subsection. The Board may
10decrease the number of racing days without affecting an
11organization licensee's ability to conduct electronic gaming
12only if the Board determines, 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

 

 

HB5146- 213 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 214 -LRB100 18631 SMS 33856 b

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.

 

 

HB5146- 215 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 216 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 217 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 218 -LRB100 18631 SMS 33856 b

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

 

 

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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

 

 

HB5146- 223 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 225 -LRB100 18631 SMS 33856 b

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 Law, the
12Charitable Games Act, the Raffles and Poker Runs Act, or the
13Illinois Gambling Act, no No other method of betting, pool
14making, wagering or gambling shall be used or permitted by the
15licensee. Each licensee may retain, subject to the payment of
16all applicable taxes and purses, an amount not to exceed 17% of
17all money wagered under subsection (a) of this Section, except
18as may otherwise 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

 

 

HB5146- 227 -LRB100 18631 SMS 33856 b

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,

 

 

HB5146- 228 -LRB100 18631 SMS 33856 b

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. For one year after August 15, 2014 (the effective date
24of Public Act 98-968), non-host licensees may carry the host
25track simulcast program and shall accept wagers on all races
26included as part of the simulcast program of horse races

 

 

HB5146- 230 -LRB100 18631 SMS 33856 b

1conducted at race tracks located within North America upon
2which wagering is permitted. For a period of one year after
3August 15, 2014 (the effective date of Public Act 98-968), on
4horse races conducted at race tracks located outside of North
5America, non-host licensees may accept wagers on all races
6included as part of the simulcast program upon which wagering
7is permitted. Beginning August 15, 2015 (one year after the
8effective date of Public Act 98-968), non-host licensees may
9carry the host track simulcast program and shall accept wagers
10on all races included as part of the simulcast program upon
11which wagering is permitted. All organization licensees shall
12provide their live signal to all advance deposit wagering
13licensees for a simulcast commission fee not to exceed 6% of
14the advance deposit wagering licensee's Illinois handle on the
15organization licensee's signal without prior approval by the
16Board. The Board may adopt rules under which it may permit
17simulcast commission fees in excess of 6%. The Board shall
18adopt rules limiting the interstate commission fees charged to
19an advance deposit wagering licensee. The Board shall adopt
20rules regarding advance deposit wagering on interstate
21simulcast races that shall reflect, among other things, the
22General Assembly's desire to maximize revenues to the State,
23horsemen purses, and organizational licensees. However,
24organization licensees providing live signals pursuant to the
25requirements of this subsection (g) may petition the Board to
26withhold their live signals from an advance deposit wagering

 

 

HB5146- 231 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 232 -LRB100 18631 SMS 33856 b

1    Notwithstanding any other provision of this Act, through
2December 31, 2018, an organization licensee, with the consent
3of the horsemen association representing the largest number of
4owners, trainers, jockeys, or standardbred drivers who race
5horses at that organization licensee's racing meeting, may
6maintain a system whereby advance deposit wagering may take
7place or an organization licensee, with the consent of the
8horsemen association representing the largest number of
9owners, trainers, jockeys, or standardbred drivers who race
10horses at that organization licensee's racing meeting, may
11contract with another person to carry out a system of advance
12deposit wagering. Such consent may not be unreasonably
13withheld. Only with respect to an appeal to the Board that
14consent for an organization licensee that maintains its own
15advance deposit wagering system is being unreasonably
16withheld, the Board shall issue a final order within 30 days
17after initiation of the appeal, and the organization licensee's
18advance deposit wagering system may remain operational during
19that 30-day period. The actions of any organization licensee
20who conducts advance deposit wagering or any person who has a
21contract with an organization licensee to conduct advance
22deposit wagering who conducts advance deposit wagering on or
23after January 1, 2013 and prior to June 7, 2013 (the effective
24date of Public Act 98-18) taken in reliance on the changes made
25to this subsection (g) by Public Act 98-18 are hereby
26validated, provided payment of all applicable pari-mutuel

 

 

HB5146- 233 -LRB100 18631 SMS 33856 b

1taxes are remitted to the Board. All advance deposit wagers
2placed from within Illinois must be placed through a
3Board-approved advance deposit wagering licensee; no other
4entity may accept an advance deposit wager from a person within
5Illinois. All advance deposit wagering is subject to any rules
6adopted by the Board. The Board may adopt rules necessary to
7regulate advance deposit wagering through the use of emergency
8rulemaking in accordance with Section 5-45 of the Illinois
9Administrative Procedure Act. The General Assembly finds that
10the adoption of rules to regulate advance deposit wagering is
11deemed an emergency and necessary for the public interest,
12safety, and welfare. An advance deposit wagering licensee may
13retain all moneys as agreed to by contract with an organization
14licensee. Any moneys retained by the organization licensee from
15advance deposit wagering, not including moneys retained by the
16advance deposit wagering licensee, shall be paid 50% to the
17organization licensee's purse account and 50% to the
18organization licensee. With the exception of any organization
19licensee that is owned by a publicly traded company that is
20incorporated in a state other than Illinois and advance deposit
21wagering licensees under contract with such organization
22licensees, organization licensees that maintain advance
23deposit wagering systems and advance deposit wagering
24licensees that contract with organization licensees shall
25provide sufficiently detailed monthly accountings to the
26horsemen association representing the largest number of

 

 

HB5146- 234 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 235 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 236 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 237 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 238 -LRB100 18631 SMS 33856 b

1    Mississippi River shall retain 50% of the retention from
2    interstate simulcast wagers and shall pay 50% to purses at
3    the track from which the non-host licensee derives its
4    license as follows:
5            (A) Between January 1 and the third Friday in
6        February, inclusive, if no live thoroughbred racing is
7        occurring in Illinois during this period, when the
8        interstate simulcast is a standardbred race, the purse
9        share to its standardbred purse account;
10            (B) Between January 1 and the third Friday in
11        February, inclusive, if no live thoroughbred racing is
12        occurring in Illinois during this period, and the
13        interstate simulcast is a thoroughbred race, the purse
14        share to its interstate simulcast purse pool to be
15        distributed under paragraph (10) of this subsection
16        (g);
17            (C) Between January 1 and the third Friday in
18        February, inclusive, if live thoroughbred racing is
19        occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
20        the purse share from wagers made during this time
21        period to its thoroughbred purse account and between
22        6:30 p.m. and 6:30 a.m. the purse share from wagers
23        made during this time period to its standardbred purse
24        accounts;
25            (D) Between the third Saturday in February and
26        December 31, when the interstate simulcast occurs

 

 

HB5146- 239 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 240 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 241 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 242 -LRB100 18631 SMS 33856 b

1        Failure to make the payment to the Illinois Colt Stakes
2    Purse Distribution Fund before January 1, 2002 shall result
3    in the immediate revocation of the licensee's organization
4    license, inter-track wagering license, and inter-track
5    wagering location license.
6        Moneys paid into the Illinois Colt Stakes Purse
7    Distribution Fund pursuant to this paragraph (7.3) shall be
8    paid to purses for standardbred races for Illinois
9    conceived and foaled horses conducted at any county
10    fairgrounds. Moneys paid into the Illinois Colt Stakes
11    Purse Distribution Fund pursuant to this paragraph (7.3)
12    shall be used as determined by the Department of
13    Agriculture, with the advice and assistance of the Illinois
14    Standardbred Breeders Fund Advisory Board, shall be in
15    addition to and not in lieu of any other moneys paid to
16    standardbred purses under this Act, and shall not be
17    commingled with any other moneys paid into that Fund.
18        (7.4) If live standardbred racing is conducted at a
19    racetrack located in Madison County at any time in calendar
20    year 2001 before the payment required under paragraph (7.3)
21    has been made, the organization licensee who is licensed to
22    conduct racing at that racetrack shall pay all moneys
23    derived by that racetrack from simulcast wagering and
24    inter-track wagering during calendar years 2000 and 2001
25    that (1) are to be used for purses and (2) are generated
26    between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or

 

 

HB5146- 243 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 244 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 245 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 246 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 247 -LRB100 18631 SMS 33856 b

1    a track awarded standardbred racing dates in 2019 and
2    thereafter; or (iv) at a track located in Madison County
3    that conducted at least 100 days of live racing during the
4    immediately preceding calendar year may be issued an
5    inter-track wagering license, unless a lesser schedule of
6    live racing is the result of (A) weather, unsafe track
7    conditions, or other acts of God; (B) an agreement between
8    the organization licensee and the associations
9    representing the largest number of owners, trainers,
10    jockeys, or standardbred drivers who race horses at that
11    organization licensee's racing meeting; or (C) a finding by
12    the Board of extraordinary circumstances and that it was in
13    the best interest of the public and the sport to conduct
14    fewer than 100 days of live racing. Any such person having
15    operating control of the racing facility may receive
16    inter-track wagering location licenses. An eligible race
17    track located in a county that has a population of more
18    than 230,000 and that is bounded by the Mississippi River
19    may establish up to 9 inter-track wagering locations, an
20    eligible race track located in Stickney Township in Cook
21    County may establish up to 16 inter-track wagering
22    locations, and an eligible race track located in Palatine
23    Township in Cook County may establish up to 18 inter-track
24    wagering locations. An eligible race track conducting
25    standardbred racing may have up to 9 inter-track wagering
26    locations. An application for said license shall be filed

 

 

HB5146- 248 -LRB100 18631 SMS 33856 b

1    with the Board prior to such dates as may be fixed by the
2    Board. With an application for an inter-track wagering
3    location license there shall be delivered to the Board a
4    certified check or bank draft payable to the order of the
5    Board for an amount equal to $500. The application shall be
6    on forms prescribed and furnished by the Board. The
7    application shall comply with all other rules, regulations
8    and conditions imposed by the Board in connection
9    therewith.
10        (2) The Board shall examine the applications with
11    respect to their conformity with this Act and the rules and
12    regulations imposed by the Board. If found to be in
13    compliance with the Act and rules and regulations of the
14    Board, the Board may then issue a license to conduct
15    inter-track wagering and simulcast wagering to such
16    applicant. All such applications shall be acted upon by the
17    Board at a meeting to be held on such date as may be fixed
18    by the Board.
19        (3) In granting licenses to conduct inter-track
20    wagering and simulcast wagering, the Board shall give due
21    consideration to the best interests of the public, of horse
22    racing, and of maximizing revenue to the State.
23        (4) Prior to the issuance of a license to conduct
24    inter-track wagering and simulcast wagering, the applicant
25    shall file with the Board a bond payable to the State of
26    Illinois in the sum of $50,000, executed by the applicant

 

 

HB5146- 249 -LRB100 18631 SMS 33856 b

1    and a surety company or companies authorized to do business
2    in this State, and conditioned upon (i) the payment by the
3    licensee of all taxes due under Section 27 or 27.1 and any
4    other monies due and payable under this Act, and (ii)
5    distribution by the licensee, upon presentation of the
6    winning ticket or tickets, of all sums payable to the
7    patrons of pari-mutuel pools.
8        (5) Each license to conduct inter-track wagering and
9    simulcast wagering shall specify the person to whom it is
10    issued, the dates on which such wagering is permitted, and
11    the track or location where the wagering is to be
12    conducted.
13        (6) All wagering under such license is subject to this
14    Act and to the rules and regulations from time to time
15    prescribed by the Board, and every such license issued by
16    the Board shall contain a recital to that effect.
17        (7) An inter-track wagering licensee or inter-track
18    wagering location licensee may accept wagers at the track
19    or location where it is licensed, or as otherwise provided
20    under this Act.
21        (8) Inter-track wagering or simulcast wagering shall
22    not be conducted at any track less than 4 5 miles from a
23    track at which a racing meeting is in progress.
24        (8.1) Inter-track wagering location licensees who
25    derive their licenses from a particular organization
26    licensee shall conduct inter-track wagering and simulcast

 

 

HB5146- 250 -LRB100 18631 SMS 33856 b

1    wagering only at locations that are within 160 miles of
2    that race track where the particular organization licensee
3    is licensed to conduct racing. However, inter-track
4    wagering and simulcast wagering shall not be conducted by
5    those licensees at any location within 5 miles of any race
6    track at which a horse race meeting has been licensed in
7    the current year, unless the person having operating
8    control of such race track has given its written consent to
9    such inter-track wagering location licensees, which
10    consent must be filed with the Board at or prior to the
11    time application is made. In the case of any inter-track
12    wagering location licensee initially licensed after
13    December 31, 2013, inter-track wagering and simulcast
14    wagering shall not be conducted by those inter-track
15    wagering location licensees that are located outside the
16    City of Chicago at any location within 8 miles of any race
17    track at which a horse race meeting has been licensed in
18    the current year, unless the person having operating
19    control of such race track has given its written consent to
20    such inter-track wagering location licensees, which
21    consent must be filed with the Board at or prior to the
22    time application is made.
23        (8.2) Inter-track wagering or simulcast wagering shall
24    not be conducted by an inter-track wagering location
25    licensee at any location within 500 feet of an existing
26    church, an or existing elementary or secondary public

 

 

HB5146- 251 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 252 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 253 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 254 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 255 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 256 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 257 -LRB100 18631 SMS 33856 b

1    inter-track wagering location licensee shall be allocated
2    40% to the location licensee and 60% to the organization
3    licensee which provides the Illinois races to the location,
4    except that an inter-track wagering location licensee that
5    derives its license from a track located in a county with a
6    population in excess of 230,000 and that borders the
7    Mississippi River shall not divide any remaining retention
8    with the organization licensee that provides the race or
9    races and an inter-track wagering location licensee that
10    accepts wagers on races conducted by an organization
11    licensee that conducts a race meet in a county with a
12    population in excess of 230,000 and that borders the
13    Mississippi River shall not divide any remaining retention
14    with the organization licensee. Notwithstanding the
15    provisions of clauses (ii) and (iv) of this paragraph, in
16    the case of the additional inter-track wagering location
17    licenses authorized under paragraph (1) of this subsection
18    (h) by Public Act 87-110, those licensees shall pay the
19    following amounts as purses: during the first 12 months the
20    licensee is in operation, 5.25% of the pari-mutuel handle
21    wagered at the location on races; during the second 12
22    months, 5.25%; during the third 12 months, 5.75%; during
23    the fourth 12 months, 6.25%; and during the fifth 12 months
24    and thereafter, 6.75%. The following amounts shall be
25    retained by the licensee to satisfy all costs and expenses
26    of conducting its wagering: during the first 12 months the

 

 

HB5146- 258 -LRB100 18631 SMS 33856 b

1    licensee is in operation, 8.25% of the pari-mutuel handle
2    wagered at the location; during the second 12 months,
3    8.25%; during the third 12 months, 7.75%; during the fourth
4    12 months, 7.25%; and during the fifth 12 months and
5    thereafter, 6.75%. For additional inter-track wagering
6    location licensees authorized under Public Act 89-16,
7    purses for the first 12 months the licensee is in operation
8    shall be 5.75% of the pari-mutuel wagered at the location,
9    purses for the second 12 months the licensee is in
10    operation shall be 6.25%, and purses thereafter shall be
11    6.75%. For additional inter-track location licensees
12    authorized under Public Act 89-16, the licensee shall be
13    allowed to retain to satisfy all costs and expenses: 7.75%
14    of the pari-mutuel handle wagered at the location during
15    its first 12 months of operation, 7.25% during its second
16    12 months of operation, and 6.75% thereafter.
17        (C) There is hereby created the Horse Racing Tax
18    Allocation Fund which shall remain in existence until
19    December 31, 1999. Moneys remaining in the Fund after
20    December 31, 1999 shall be paid into the General Revenue
21    Fund. Until January 1, 2000, all monies paid into the Horse
22    Racing Tax Allocation Fund pursuant to this paragraph (11)
23    by inter-track wagering location licensees located in park
24    districts of 500,000 population or less, or in a
25    municipality that is not included within any park district
26    but is included within a conservation district and is the

 

 

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1    county seat of a county that (i) is contiguous to the state
2    of Indiana and (ii) has a 1990 population of 88,257
3    according to the United States Bureau of the Census, and
4    operating on May 1, 1994 shall be allocated by
5    appropriation as follows:
6            Two-sevenths to the Department of Agriculture.
7        Fifty percent of this two-sevenths shall be used to
8        promote the Illinois horse racing and breeding
9        industry, and shall be distributed by the Department of
10        Agriculture upon the advice of a 9-member committee
11        appointed by the Governor consisting of the following
12        members: the Director of Agriculture, who shall serve
13        as chairman; 2 representatives of organization
14        licensees conducting thoroughbred race meetings in
15        this State, recommended by those licensees; 2
16        representatives of organization licensees conducting
17        standardbred race meetings in this State, recommended
18        by those licensees; a representative of the Illinois
19        Thoroughbred Breeders and Owners Foundation,
20        recommended by that Foundation; a representative of
21        the Illinois Standardbred Owners and Breeders
22        Association, recommended by that Association; a
23        representative of the Horsemen's Benevolent and
24        Protective Association or any successor organization
25        thereto established in Illinois comprised of the
26        largest number of owners and trainers, recommended by

 

 

HB5146- 260 -LRB100 18631 SMS 33856 b

1        that Association or that successor organization; and a
2        representative of the Illinois Harness Horsemen's
3        Association, recommended by that Association.
4        Committee members shall serve for terms of 2 years,
5        commencing January 1 of each even-numbered year. If a
6        representative of any of the above-named entities has
7        not been recommended by January 1 of any even-numbered
8        year, the Governor shall appoint a committee member to
9        fill that position. Committee members shall receive no
10        compensation for their services as members but shall be
11        reimbursed for all actual and necessary expenses and
12        disbursements incurred in the performance of their
13        official duties. The remaining 50% of this
14        two-sevenths shall be distributed to county fairs for
15        premiums and rehabilitation as set forth in the
16        Agricultural Fair Act;
17            Four-sevenths to park districts or municipalities
18        that do not have a park district of 500,000 population
19        or less for museum purposes (if an inter-track wagering
20        location licensee is located in such a park district)
21        or to conservation districts for museum purposes (if an
22        inter-track wagering location licensee is located in a
23        municipality that is not included within any park
24        district but is included within a conservation
25        district and is the county seat of a county that (i) is
26        contiguous to the state of Indiana and (ii) has a 1990

 

 

HB5146- 261 -LRB100 18631 SMS 33856 b

1        population of 88,257 according to the United States
2        Bureau of the Census, except that if the conservation
3        district does not maintain a museum, the monies shall
4        be allocated equally between the county and the
5        municipality in which the inter-track wagering
6        location licensee is located for general purposes) or
7        to a municipal recreation board for park purposes (if
8        an inter-track wagering location licensee is located
9        in a municipality that is not included within any park
10        district and park maintenance is the function of the
11        municipal recreation board and the municipality has a
12        1990 population of 9,302 according to the United States
13        Bureau of the Census); provided that the monies are
14        distributed to each park district or conservation
15        district or municipality that does not have a park
16        district in an amount equal to four-sevenths of the
17        amount collected by each inter-track wagering location
18        licensee within the park district or conservation
19        district or municipality for the Fund. Monies that were
20        paid into the Horse Racing Tax Allocation Fund before
21        August 9, 1991 (the effective date of Public Act
22        87-110) by an inter-track wagering location licensee
23        located in a municipality that is not included within
24        any park district but is included within a conservation
25        district as provided in this paragraph shall, as soon
26        as practicable after August 9, 1991 (the effective date

 

 

HB5146- 262 -LRB100 18631 SMS 33856 b

1        of Public Act 87-110), be allocated and paid to that
2        conservation district as provided in this paragraph.
3        Any park district or municipality not maintaining a
4        museum may deposit the monies in the corporate fund of
5        the park district or municipality where the
6        inter-track wagering location is located, to be used
7        for general purposes; and
8            One-seventh to the Agricultural Premium Fund to be
9        used for distribution to agricultural home economics
10        extension councils in accordance with "An Act in
11        relation to additional support and finances for the
12        Agricultural and Home Economic Extension Councils in
13        the several counties of this State and making an
14        appropriation therefor", approved July 24, 1967.
15        Until January 1, 2000, all other monies paid into the
16    Horse Racing Tax Allocation Fund pursuant to this paragraph
17    (11) shall be allocated by appropriation as follows:
18            Two-sevenths to the Department of Agriculture.
19        Fifty percent of this two-sevenths shall be used to
20        promote the Illinois horse racing and breeding
21        industry, and shall be distributed by the Department of
22        Agriculture upon the advice of a 9-member committee
23        appointed by the Governor consisting of the following
24        members: the Director of Agriculture, who shall serve
25        as chairman; 2 representatives of organization
26        licensees conducting thoroughbred race meetings in

 

 

HB5146- 263 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 264 -LRB100 18631 SMS 33856 b

1        premiums and rehabilitation as set forth in the
2        Agricultural Fair Act;
3            Four-sevenths to museums and aquariums located in
4        park districts of over 500,000 population; provided
5        that the monies are distributed in accordance with the
6        previous year's distribution of the maintenance tax
7        for such museums and aquariums as provided in Section 2
8        of the Park District Aquarium and Museum Act; and
9            One-seventh to the Agricultural Premium Fund to be
10        used for distribution to agricultural home economics
11        extension councils in accordance with "An Act in
12        relation to additional support and finances for the
13        Agricultural and Home Economic Extension Councils in
14        the several counties of this State and making an
15        appropriation therefor", approved July 24, 1967. This
16        subparagraph (C) shall be inoperative and of no force
17        and effect on and after January 1, 2000.
18            (D) Except as provided in paragraph (11) of this
19        subsection (h), with respect to purse allocation from
20        inter-track wagering, the monies so retained shall be
21        divided as follows:
22                (i) If the inter-track wagering licensee,
23            except an inter-track wagering licensee that
24            derives its license from an organization licensee
25            located in a county with a population in excess of
26            230,000 and bounded by the Mississippi River, is

 

 

HB5146- 265 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 266 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 267 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 268 -LRB100 18631 SMS 33856 b

1    agreements with licensees authorizing such licensees to
2    conduct inter-track wagering on races to be held at the
3    licensed race meetings conducted by the Department of
4    Agriculture. Such agreement shall specify the races of the
5    Department of Agriculture's licensed race meeting upon
6    which the licensees will conduct wagering. In the event
7    that a licensee conducts inter-track pari-mutuel wagering
8    on races from the Illinois State Fair or DuQuoin State Fair
9    which are in addition to the licensee's previously approved
10    racing program, those races shall be considered a separate
11    racing day for the purpose of determining the daily handle
12    and computing the privilege or pari-mutuel tax on that
13    daily handle as provided in Sections 27 and 27.1. Such
14    agreements shall be approved by the Board before such
15    wagering may be conducted. In determining whether to grant
16    approval, the Board shall give due consideration to the
17    best interests of the public and of horse racing. The
18    provisions of paragraphs (1), (8), (8.1), and (8.2) of
19    subsection (h) of this Section which are not specified in
20    this paragraph (13) shall not apply to licensed race
21    meetings conducted by the Department of Agriculture at the
22    Illinois State Fair in Sangamon County or the DuQuoin State
23    Fair in Perry County, or to any wagering conducted on those
24    race meetings.
25        (14) An inter-track wagering location license
26    authorized by the Board in 2016 that is owned and operated

 

 

HB5146- 269 -LRB100 18631 SMS 33856 b

1    by a race track in Rock Island County shall be transferred
2    to a commonly owned race track in Cook County on August 12,
3    2016 (the effective date of Public Act 99-757). The
4    licensee shall retain its status in relation to purse
5    distribution under paragraph (11) of this subsection (h)
6    following the transfer to the new entity. The pari-mutuel
7    tax credit under Section 32.1 shall not be applied toward
8    any pari-mutuel tax obligation of the inter-track wagering
9    location licensee of the license that is transferred under
10    this paragraph (14).
11    (i) Notwithstanding the other provisions of this Act, the
12conduct of wagering at wagering facilities is authorized on all
13days, except as limited by subsection (b) of Section 19 of this
14Act.
15(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
16100-201, eff. 8-18-17.)
 
17    (230 ILCS 5/26.8)
18    Sec. 26.8. Beginning on February 1, 2014 and through
19December 31, 2018, each wagering licensee may impose a
20surcharge of up to 0.5% on winning wagers and winnings from
21wagers. The surcharge shall be deducted from winnings prior to
22payout. All amounts collected from the imposition of this
23surcharge shall be evenly distributed to the organization
24licensee and the purse account of the organization licensee
25with which the licensee is affiliated. The amounts distributed

 

 

HB5146- 270 -LRB100 18631 SMS 33856 b

1under this Section shall be in addition to the amounts paid
2pursuant to paragraph (10) of subsection (h) of Section 26,
3Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
4(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
5    (230 ILCS 5/26.9)
6    Sec. 26.9. Beginning on February 1, 2014 and through
7December 31, 2018, in addition to the surcharge imposed in
8Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
9licensee shall impose a surcharge of 0.2% on winning wagers and
10winnings from wagers. The surcharge shall be deducted from
11winnings prior to payout. All amounts collected from the
12surcharges imposed under this Section shall be remitted to the
13Board. From amounts collected under this Section, the Board
14shall deposit an amount not to exceed $100,000 annually into
15the Quarter Horse Purse Fund and all remaining amounts into the
16Horse Racing Fund.
17(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
18    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
19    Sec. 27. (a) In addition to the organization license fee
20provided by this Act, until January 1, 2000, a graduated
21privilege tax is hereby imposed for conducting the pari-mutuel
22system of wagering permitted under this Act. Until January 1,
232000, except as provided in subsection (g) of Section 27 of
24this Act, all of the breakage of each racing day held by any

 

 

HB5146- 271 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 272 -LRB100 18631 SMS 33856 b

1at all pari-mutuel wagering facilities and on advance deposit
2wagering from a location other than a wagering facility, except
3as otherwise provided for in this subsection (a-5). In addition
4to the pari-mutuel tax imposed on advance deposit wagering
5pursuant to this subsection (a-5), beginning on August 24, 2012
6(the effective date of Public Act 97-1060) and through December
731, 2018, an additional pari-mutuel tax at the rate of 0.25%
8shall be imposed on advance deposit wagering. Until August 25,
92012, the additional 0.25% pari-mutuel tax imposed on advance
10deposit wagering by Public Act 96-972 shall be deposited into
11the Quarter Horse Purse Fund, which shall be created as a
12non-appropriated trust fund administered by the Board for
13grants to thoroughbred organization licensees for payment of
14purses for quarter horse races conducted by the organization
15licensee. Beginning on August 26, 2012, the additional 0.25%
16pari-mutuel tax imposed on advance deposit wagering shall be
17deposited into the Standardbred Purse Fund, which shall be
18created as a non-appropriated trust fund administered by the
19Board, for grants to the standardbred organization licensees
20for payment of purses for standardbred horse races conducted by
21the organization licensee. Thoroughbred organization licensees
22may petition the Board to conduct quarter horse racing and
23receive purse grants from the Quarter Horse Purse Fund. The
24Board shall have complete discretion in distributing the
25Quarter Horse Purse Fund to the petitioning organization
26licensees. Beginning on July 26, 2010 (the effective date of

 

 

HB5146- 273 -LRB100 18631 SMS 33856 b

1Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
2the daily pari-mutuel handle is imposed at a pari-mutuel
3facility whose license is derived from a track located in a
4county that borders the Mississippi River and conducted live
5racing in the previous year. The pari-mutuel tax imposed by
6this subsection (a-5) shall be remitted to the Department of
7Revenue within 48 hours after the close of the racing day upon
8which it is assessed or within such other time as the Board
9prescribes.
10    (a-10) Beginning on the date when an organization licensee
11begins conducting electronic gaming pursuant to an electronic
12gaming license, the following pari-mutuel tax is imposed upon
13an organization licensee on Illinois races at the licensee's
14race track:
15        1.5% of the pari-mutuel handle at or below the average
16    daily pari-mutuel handle for 2011.
17        2% of the pari-mutuel handle above the average daily
18    pari-mutuel handle for 2011 up to 125% of the average daily
19    pari-mutuel handle for 2011.
20        2.5% of the pari-mutuel handle 125% or more above the
21    average daily pari-mutuel handle for 2011 up to 150% of the
22    average daily pari-mutuel handle for 2011.
23        3% of the pari-mutuel handle 150% or more above the
24    average daily pari-mutuel handle for 2011 up to 175% of the
25    average daily pari-mutuel handle for 2011.
26        3.5% of the pari-mutuel handle 175% or more above the

 

 

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1    average daily pari-mutuel handle for 2011.
2    The pari-mutuel tax imposed by this subsection (a-10) shall
3be remitted to the Board within 48 hours after the close of the
4racing day upon which it is assessed or within such other time
5as the Board prescribes.
6    (b) On or before December 31, 1999, in the event that any
7organization licensee conducts 2 separate programs of races on
8any day, each such program shall be considered a separate
9racing day for purposes of determining the daily handle and
10computing the privilege tax on such daily handle as provided in
11subsection (a) of this Section.
12    (c) Licensees shall at all times keep accurate books and
13records of all monies wagered on each day of a race meeting and
14of the taxes paid to the Department of Revenue under the
15provisions of this Section. The Board or its duly authorized
16representative or representatives shall at all reasonable
17times have access to such records for the purpose of examining
18and checking the same and ascertaining whether the proper
19amount of taxes is being paid as provided. The Board shall
20require verified reports and a statement of the total of all
21monies wagered daily at each wagering facility upon which the
22taxes are assessed and may prescribe forms upon which such
23reports and statement shall be made.
24    (d) Before a license is issued or re-issued, the licensee
25shall post a bond in the sum of $500,000 to the State of
26Illinois. The bond shall be used to guarantee that the licensee

 

 

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1faithfully makes the payments, keeps the books and records and
2makes reports, and conducts games of chance in conformity with
3this Act and the rules adopted by the Board. The bond shall not
4be canceled by a surety on less than 30 days' notice in writing
5to the Board. If a bond is canceled and the licensee fails to
6file a new bond with the Board in the required amount on or
7before the effective date of cancellation, the licensee's
8license shall be revoked. The total and aggregate liability of
9the surety on the bond is limited to the amount specified in
10the bond. Any licensee failing or refusing to pay the amount of
11any tax due under this Section shall be guilty of a business
12offense and upon conviction shall be fined not more than $5,000
13in addition to the amount found due as tax under this Section.
14Each day's violation shall constitute a separate offense. All
15fines paid into Court by a licensee hereunder shall be
16transmitted and paid over by the Clerk of the Court to the
17Board.
18    (e) No other license fee, privilege tax, excise tax, or
19racing fee, except as provided in this Act, shall be assessed
20or collected from any such licensee by the State.
21    (f) No other license fee, privilege tax, excise tax or
22racing fee shall be assessed or collected from any such
23licensee by units of local government except as provided in
24paragraph 10.1 of subsection (h) and subsection (f) of Section
2526 of this Act. However, any municipality that has a Board
26licensed horse race meeting at a race track wholly within its

 

 

HB5146- 276 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 277 -LRB100 18631 SMS 33856 b

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

 

 

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1    allocated to standardbred purses under item (i) is
2    allocated to standardbred organization licensees in the
3    succeeding allocation year.
4    To the extent the excess amount of taxes and fees to be
5collected and distributed to State and local governmental
6authorities exceeds $11 million, that excess amount shall be
7collected and distributed to State and local authorities as
8provided for under this Act.
9(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
10eff. 8-12-16.)
 
11    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
12    Sec. 30. (a) The General Assembly declares that it is the
13policy of this State to encourage the breeding of thoroughbred
14horses in this State and the ownership of such horses by
15residents of this State in order to provide for: sufficient
16numbers of high quality thoroughbred horses to participate in
17thoroughbred racing meetings in this State, and to establish
18and preserve the agricultural and commercial benefits of such
19breeding and racing industries to the State of Illinois. It is
20the intent of the General Assembly to further this policy by
21the provisions of this Act.
22    (b) Each organization licensee conducting a thoroughbred
23racing meeting pursuant to this Act shall provide at least two
24races each day limited to Illinois conceived and foaled horses
25or Illinois foaled horses or both. A minimum of 6 races shall

 

 

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1be conducted each week limited to Illinois conceived and foaled
2or Illinois foaled horses or both. No horses shall be permitted
3to start in such races unless duly registered under the rules
4of the Department of Agriculture.
5    (c) Conditions of races under subsection (b) shall be
6commensurate with past performance, quality, and class of
7Illinois conceived and foaled and Illinois foaled horses
8available. If, however, sufficient competition cannot be had
9among horses of that class on any day, the races may, with
10consent of the Board, be eliminated for that day and substitute
11races provided.
12    (d) There is hereby created a special fund of the State
13Treasury to be known as the Illinois Thoroughbred Breeders
14Fund.
15    Beginning on the effective date of this amendatory Act of
16the 100th General Assembly, the Illinois Thoroughbred Breeders
17Fund shall become a non-appropriated trust fund held separately
18from State moneys. Expenditures from this Fund shall no longer
19be subject to appropriation.
20    Except as provided in subsection (g) of Section 27 of this
21Act, 8.5% of all the monies received by the State as privilege
22taxes on Thoroughbred racing meetings shall be paid into the
23Illinois Thoroughbred Breeders Fund.
24    Notwithstanding any provision of law to the contrary,
25amounts deposited into the Illinois Thoroughbred Breeders Fund
26from revenues generated by electronic gaming after the

 

 

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1effective date of this amendatory Act of the 100th General
2Assembly shall be in addition to tax and fee amounts paid under
3this Section for calendar year 2018 and thereafter.
4    (e) The Illinois Thoroughbred Breeders Fund shall be
5administered by the Department of Agriculture with the advice
6and assistance of the Advisory Board created in subsection (f)
7of this Section.
8    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
9shall consist of the Director of the Department of Agriculture,
10who shall serve as Chairman; a member of the Illinois Racing
11Board, designated by it; 2 representatives of the organization
12licensees conducting thoroughbred racing meetings, recommended
13by them; 2 representatives of the Illinois Thoroughbred
14Breeders and Owners Foundation, recommended by it; one
15representative and 2 representatives of the Horsemen's
16Benevolent Protective Association; and one representative from
17the Illinois Thoroughbred Horsemen's Association or any
18successor organization established in Illinois comprised of
19the largest number of owners and trainers, recommended by it,
20with one representative of the Horsemen's Benevolent and
21Protective Association to come from its Illinois Division, and
22one from its Chicago Division. Advisory Board members shall
23serve for 2 years commencing January 1 of each odd numbered
24year. If representatives of the organization licensees
25conducting thoroughbred racing meetings, the Illinois
26Thoroughbred Breeders and Owners Foundation, and the

 

 

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

 

 

HB5146- 282 -LRB100 18631 SMS 33856 b

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

 

 

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

 

 

HB5146- 284 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 285 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 286 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 287 -LRB100 18631 SMS 33856 b

1the Illinois conceived and foaled horses which won breeders'
2awards and the amount of such breeders' awards under this
3subsection to verify accuracy of payments and assure proper
4distribution of breeders' awards in accordance with the
5provisions of this Act. Such payments shall be delivered by the
6organization licensee within 30 days of the end of each race
7meeting.
8    (j) A sum equal to 13% of the first prize money won in
9every race limited to Illinois foaled horses or Illinois
10conceived and foaled horses, or both, shall be paid in the
11following manner by the organization licensee conducting the
12horse race meeting, 50% from the organization licensee's share
13of the money wagered and 50% from the purse account as follows:
1411 1/2% to the breeders of the horses in each such race which
15are the official first, second, third, and fourth finishers and
161 1/2% to the organization representing thoroughbred breeders
17and owners whose representatives serves on the Illinois
18Thoroughbred Breeders Fund Advisory Board for verifying the
19amounts of breeders' awards earned, ensuring their proper
20distribution in accordance with this Act, and servicing and
21promoting the Illinois horse racing industry. Beginning in the
22calendar year in which an organization licensee that is
23eligible to receive payments under paragraph (13) of subsection
24(g) of Section 26 of this Act begins to receive funds from
25electronic gaming, a sum of 21 1/2% of every purse in a race
26limited to Illinois foaled horses or Illinois conceived and

 

 

HB5146- 288 -LRB100 18631 SMS 33856 b

1foaled horses, or both, shall be paid by the organization
2licensee conducting the horse race meeting. Such sum shall be
3paid 30% from the organization licensee's account and 70% from
4the purse account as follows: 20% to the breeders of the horses
5in each such race who are official first, second, third and
6fourth finishers and 1 1/2% to the organization representing
7thoroughbred breeders and owners whose representatives serve
8on the Illinois Thoroughbred Breeders Fund Advisory Board for
9verifying the amounts of breeders' awards earned, ensuring
10their proper distribution in accordance with this Act, and
11servicing and promoting the Illinois thoroughbred horse racing
12industry. The organization representing thoroughbred breeders
13and owners shall cause all expenditures of moneys received
14under this subsection (j) to be audited at least annually by a
15registered public accountant. The organization shall file
16copies of each annual audit with the Racing Board, the Clerk of
17the House of Representatives and the Secretary of the Senate,
18and shall make copies of each annual audit available to the
19public upon request and upon payment of the reasonable cost of
20photocopying the requested number of copies. A sum equal to 12
211/2% of the first prize money won in each race limited to
22Illinois foaled horses or Illinois conceived and foaled horses,
23or both, shall be paid in the following manner by the
24organization licensee conducting the horse race meeting, from
25the organization licensee's share of the money wagered: 11 1/2%
26to the breeders of the horses in each such race which are the

 

 

HB5146- 289 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 290 -LRB100 18631 SMS 33856 b

1    Such payments shall not reduce any award to the owners of a
2horse or reduce the taxes payable under this Act. Upon
3completion of its racing meet, each organization licensee shall
4deliver to the organization representing thoroughbred breeders
5and owners whose representative serves on the Illinois
6Thoroughbred Breeders Fund Advisory Board a listing of all the
7Illinois foaled and the Illinois conceived and foaled horses
8which won breeders' awards and the amount of such breeders'
9awards in accordance with the provisions of this Act. Such
10payments shall be delivered by the organization licensee within
1130 days of the end of each race meeting.
12    (k) The term "breeder", as used herein, means the owner of
13the mare at the time the foal is dropped. An "Illinois foaled
14horse" is a foal dropped by a mare which enters this State on
15or before December 1, in the year in which the horse is bred,
16provided the mare remains continuously in this State until its
17foal is born. An "Illinois foaled horse" also means a foal born
18of a mare in the same year as the mare enters this State on or
19before March 1, and remains in this State at least 30 days
20after foaling, is bred back during the season of the foaling to
21an Illinois Registered Stallion (unless a veterinarian
22certifies that the mare should not be bred for health reasons),
23and is not bred to a stallion standing in any other state
24during the season of foaling. An "Illinois foaled horse" also
25means a foal born in Illinois of a mare purchased at public
26auction subsequent to the mare entering this State on or before

 

 

HB5146- 291 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 292 -LRB100 18631 SMS 33856 b

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

 

 

HB5146- 293 -LRB100 18631 SMS 33856 b

1the Department of the conditions and minimum purses for races
2limited to Illinois conceived and foaled and Illinois foaled
3horses conducted for each organizational licensee conducting a
4thoroughbred racing meeting. The Department of Agriculture
5with the advice and assistance of the Illinois Thoroughbred
6Breeders Fund Advisory Board may allocate monies for purse
7supplements for such races. In determining whether to allocate
8money and the amount, the Department of Agriculture shall
9consider factors, including but not limited to, the amount of
10money appropriated for the Illinois Thoroughbred Breeders Fund
11program, the number of races that may occur, and the
12organizational licensee's purse structure.
13    (o) (Blank).
14(Source: P.A. 98-692, eff. 7-1-14.)
 
15    (230 ILCS 5/30.5)
16    Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
17    (a) The General Assembly declares that it is the policy of
18this State to encourage the breeding of racing quarter horses
19in this State and the ownership of such horses by residents of
20this State in order to provide for sufficient numbers of high
21quality racing quarter horses in this State and to establish
22and preserve the agricultural and commercial benefits of such
23breeding and racing industries to the State of Illinois. It is
24the intent of the General Assembly to further this policy by
25the provisions of this Act.

 

 

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

 

 

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

 

 

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1    DuQuoin State Fair exclusively for quarter horses
2    conceived and foaled in Illinois.
3        (5) To provide for purses to be distributed for the
4    running of races at Illinois county fairs exclusively for
5    quarter horses conceived and foaled in Illinois.
6        (6) To provide for purses to be distributed for running
7    races exclusively for quarter horses conceived and foaled
8    in Illinois at locations in Illinois determined by the
9    Department of Agriculture with advice and consent of the
10    Illinois Racing Quarter Horse Breeders Fund Advisory
11    Board.
12        (7) No less than 90% of all moneys appropriated from
13    the Illinois Racing Quarter Horse Breeders Fund shall be
14    expended for the purposes in items (1), (2), (3), (4), and
15    (5) of this subsection (e).
16        (8) To provide for research programs concerning the
17    health, development, and care of racing quarter horses.
18        (9) To provide for dissemination of public information
19    designed to promote the breeding of racing quarter horses
20    in Illinois.
21        (10) To provide for expenses incurred in the
22    administration of the Illinois Racing Quarter Horse
23    Breeders Fund.
24    (f) The Department of Agriculture shall, by rule, with the
25advice and assistance of the Illinois Racing Quarter Horse
26Breeders Fund Advisory Board:

 

 

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1        (1) Qualify stallions for Illinois breeding; such
2    stallions to stand for service within the State of
3    Illinois, at the time of a foal's conception. Such stallion
4    must not stand for service at any place outside the State
5    of Illinois during the calendar year in which the foal is
6    conceived. The Department of Agriculture may assess and
7    collect application fees for the registration of
8    Illinois-eligible stallions. All fees collected are to be
9    paid into the Illinois Racing Quarter Horse Breeders Fund.
10        (2) Provide for the registration of Illinois conceived
11    and foaled horses. No such horse shall compete in the races
12    limited to Illinois conceived and foaled horses unless it
13    is registered with the Department of Agriculture. The
14    Department of Agriculture may prescribe such forms as are
15    necessary to determine the eligibility of such horses. The
16    Department of Agriculture may assess and collect
17    application fees for the registration of Illinois-eligible
18    foals. All fees collected are to be paid into the Illinois
19    Racing Quarter Horse Breeders Fund. No person shall
20    knowingly prepare or cause preparation of an application
21    for registration of such foals that contains false
22    information.
23    (g) The Department of Agriculture, with the advice and
24assistance of the Illinois Racing Quarter Horse Breeders Fund
25Advisory Board, shall provide that certain races limited to
26Illinois conceived and foaled be stakes races and determine the

 

 

HB5146- 298 -LRB100 18631 SMS 33856 b

1total amount of stakes and awards to be paid to the owners of
2the winning horses in such races.
3(Source: P.A. 98-463, eff. 8-16-13.)
 
4    (230 ILCS 5/31)  (from Ch. 8, par. 37-31)
5    Sec. 31. (a) The General Assembly declares that it is the
6policy of this State to encourage the breeding of standardbred
7horses in this State and the ownership of such horses by
8residents of this State in order to provide for: sufficient
9numbers of high quality standardbred horses to participate in
10harness racing meetings in this State, and to establish and
11preserve the agricultural and commercial benefits of such
12breeding and racing industries to the State of Illinois. It is
13the intent of the General Assembly to further this policy by
14the provisions of this Section of this Act.
15    (b) Each organization licensee conducting a harness racing
16meeting pursuant to this Act shall provide for at least two
17races each race program limited to Illinois conceived and
18foaled horses. A minimum of 6 races shall be conducted each
19week limited to Illinois conceived and foaled horses. No horses
20shall be permitted to start in such races unless duly
21registered under the rules of the Department of Agriculture.
22    (b-5) Organization licensees, not including the Illinois
23State Fair or the DuQuoin State Fair, shall provide stake races
24and early closer races for Illinois conceived and foaled horses
25so that purses distributed for such races shall be no less than

 

 

HB5146- 299 -LRB100 18631 SMS 33856 b

117% of total purses distributed for harness racing in that
2calendar year in addition to any stakes payments and starting
3fees contributed by horse owners.
4    (b-10) Each organization licensee conducting a harness
5racing meeting pursuant to this Act shall provide an owner
6award to be paid from the purse account equal to 25% of the
7amount earned by Illinois conceived and foaled horses in races
8that are not restricted to Illinois conceived and foaled
9horses. The owner awards shall not be paid on races below the
10$10,000 claiming class.
11    (c) Conditions of races under subsection (b) shall be
12commensurate with past performance, quality and class of
13Illinois conceived and foaled horses available. If, however,
14sufficient competition cannot be had among horses of that class
15on any day, the races may, with consent of the Board, be
16eliminated for that day and substitute races provided.
17    (d) There is hereby created a special fund of the State
18Treasury to be known as the Illinois Standardbred Breeders
19Fund.
20    During the calendar year 1981, and each year thereafter,
21except as provided in subsection (g) of Section 27 of this Act,
22eight and one-half per cent of all the monies received by the
23State as privilege taxes on harness racing meetings shall be
24paid into the Illinois Standardbred Breeders Fund.
25    (e) The Illinois Standardbred Breeders Fund shall be
26administered by the Department of Agriculture with the

 

 

HB5146- 300 -LRB100 18631 SMS 33856 b

1assistance and advice of the Advisory Board created in
2subsection (f) of this Section.
3    (f) The Illinois Standardbred Breeders Fund Advisory Board
4is hereby created. The Advisory Board shall consist of the
5Director of the Department of Agriculture, who shall serve as
6Chairman; the Superintendent of the Illinois State Fair; a
7member of the Illinois Racing Board, designated by it; a
8representative of the largest association of Illinois
9standardbred owners and breeders, recommended by it; a
10representative of a statewide association representing
11agricultural fairs in Illinois, recommended by it, such
12representative to be from a fair at which Illinois conceived
13and foaled racing is conducted; a representative of the
14organization licensees conducting harness racing meetings,
15recommended by them; a representative of the Breeder's
16Committee of the association representing the largest number of
17standardbred owners, breeders, trainers, caretakers, and
18drivers, recommended by it; and a representative of the
19association representing the largest number of standardbred
20owners, breeders, trainers, caretakers, and drivers,
21recommended by it. Advisory Board members shall serve for 2
22years commencing January 1 of each odd numbered year. If
23representatives of the largest association of Illinois
24standardbred owners and breeders, a statewide association of
25agricultural fairs in Illinois, the association representing
26the largest number of standardbred owners, breeders, trainers,

 

 

HB5146- 301 -LRB100 18631 SMS 33856 b

1caretakers, and drivers, a member of the Breeder's Committee of
2the association representing the largest number of
3standardbred owners, breeders, trainers, caretakers, and
4drivers, and the organization licensees conducting harness
5racing meetings have not been recommended by January 1 of each
6odd numbered year, the Director of the Department of
7Agriculture shall make an appointment for the organization
8failing to so recommend a member of the Advisory Board.
9Advisory Board members shall receive no compensation for their
10services as members but shall be reimbursed for all actual and
11necessary expenses and disbursements incurred in the execution
12of their official duties.
13    (g) No monies shall be expended from the Illinois
14Standardbred Breeders Fund except as appropriated by the
15General Assembly. Monies appropriated from the Illinois
16Standardbred Breeders Fund shall be expended by the Department
17of Agriculture, with the assistance and advice of the Illinois
18Standardbred Breeders Fund Advisory Board for the following
19purposes only:
20        1. To provide purses for races limited to Illinois
21    conceived and foaled horses at the State Fair and the
22    DuQuoin State Fair.
23        2. To provide purses for races limited to Illinois
24    conceived and foaled horses at county fairs.
25        3. To provide purse supplements for races limited to
26    Illinois conceived and foaled horses conducted by

 

 

HB5146- 302 -LRB100 18631 SMS 33856 b

1    associations conducting harness racing meetings.
2        4. No less than 75% of all monies in the Illinois
3    Standardbred Breeders Fund shall be expended for purses in
4    1, 2 and 3 as shown above.
5        5. In the discretion of the Department of Agriculture
6    to provide awards to harness breeders of Illinois conceived
7    and foaled horses which win races conducted by organization
8    licensees conducting harness racing meetings. A breeder is
9    the owner of a mare at the time of conception. No more than
10    10% of all monies appropriated from the Illinois
11    Standardbred Breeders Fund shall be expended for such
12    harness breeders awards. No more than 25% of the amount
13    expended for harness breeders awards shall be expended for
14    expenses incurred in the administration of such harness
15    breeders awards.
16        6. To pay for the improvement of racing facilities
17    located at the State Fair and County fairs.
18        7. To pay the expenses incurred in the administration
19    of the Illinois Standardbred Breeders Fund.
20        8. To promote the sport of harness racing, including
21    grants up to a maximum of $7,500 per fair per year for
22    conducting pari-mutuel wagering during the advertised
23    dates of a county fair.
24        9. To pay up to $50,000 annually for the Department of
25    Agriculture to conduct drug testing at county fairs racing
26    standardbred horses.

 

 

HB5146- 303 -LRB100 18631 SMS 33856 b

1    (h) (Blank) Whenever the Governor finds that the amount in
2the Illinois Standardbred Breeders Fund is more than the total
3of the outstanding appropriations from such fund, the Governor
4shall notify the State Comptroller and the State Treasurer of
5such fact. The Comptroller and the State Treasurer, upon
6receipt of such notification, shall transfer such excess amount
7from the Illinois Standardbred Breeders Fund to the General
8Revenue Fund.
9    (i) A sum equal to 13% 12 1/2% of the first prize money of
10the gross every purse won by an Illinois conceived and foaled
11horse shall be paid 50% by the organization licensee conducting
12the horse race meeting to the breeder of such winning horse
13from the organization licensee's account and 50% from the purse
14account of the licensee share of the money wagered. Such
15payment shall not reduce any award to the owner of the horse or
16reduce the taxes payable under this Act. Such payment shall be
17delivered by the organization licensee at the end of each
18quarter race meeting.
19    (j) The Department of Agriculture shall, by rule, with the
20assistance and advice of the Illinois Standardbred Breeders
21Fund Advisory Board:
22        1. Qualify stallions for Illinois Standardbred
23    Breeders Fund breeding; such stallion shall be owned by a
24    resident of the State of Illinois or by an Illinois
25    corporation all of whose shareholders, directors, officers
26    and incorporators are residents of the State of Illinois.

 

 

HB5146- 304 -LRB100 18631 SMS 33856 b

1    Such stallion shall stand for service at and within the
2    State of Illinois at the time of a foal's conception, and
3    such stallion must not stand for service at any place, nor
4    may semen from such stallion be transported, outside the
5    State of Illinois during that calendar year in which the
6    foal is conceived and that the owner of the stallion was
7    for the 12 months prior, a resident of Illinois. Foals
8    conceived outside the State of Illinois from shipped semen
9    from a stallion qualified for breeders' awards under this
10    Section are not eligible to participate in the Illinois
11    conceived and foaled program. The articles of agreement of
12    any partnership, joint venture, limited partnership,
13    syndicate, association or corporation and any bylaws and
14    stock certificates must contain a restriction that
15    provides that the ownership or transfer of interest by any
16    one of the persons a party to the agreement can only be
17    made to a person who qualifies as an Illinois resident.
18        2. Provide for the registration of Illinois conceived
19    and foaled horses and no such horse shall compete in the
20    races limited to Illinois conceived and foaled horses
21    unless registered with the Department of Agriculture. The
22    Department of Agriculture may prescribe such forms as may
23    be necessary to determine the eligibility of such horses.
24    No person shall knowingly prepare or cause preparation of
25    an application for registration of such foals containing
26    false information. A mare (dam) must be in the state at

 

 

HB5146- 305 -LRB100 18631 SMS 33856 b

1    least 180 30 days prior to foaling or remain in the State
2    at least 30 days at the time of foaling. Beginning with the
3    1996 breeding season and for foals of 1997 and thereafter,
4    a foal conceived in the State of Illinois by transported
5    fresh semen may be eligible for Illinois conceived and
6    foaled registration provided all breeding and foaling
7    requirements are met. The stallion must be qualified for
8    Illinois Standardbred Breeders Fund breeding at the time of
9    conception and the mare must be inseminated within the
10    State of Illinois. The foal must be dropped in Illinois and
11    properly registered with the Department of Agriculture in
12    accordance with this Act.
13        3. Provide that at least a 5 day racing program shall
14    be conducted at the State Fair each year, which program
15    shall include at least the following races limited to
16    Illinois conceived and foaled horses: (a) a two year old
17    Trot and Pace, and Filly Division of each; (b) a three year
18    old Trot and Pace, and Filly Division of each; (c) an aged
19    Trot and Pace, and Mare Division of each.
20        4. Provide for the payment of nominating, sustaining
21    and starting fees for races promoting the sport of harness
22    racing and for the races to be conducted at the State Fair
23    as provided in subsection (j) 3 of this Section provided
24    that the nominating, sustaining and starting payment
25    required from an entrant shall not exceed 2% of the purse
26    of such race. All nominating, sustaining and starting

 

 

HB5146- 306 -LRB100 18631 SMS 33856 b

1    payments shall be held for the benefit of entrants and
2    shall be paid out as part of the respective purses for such
3    races. Nominating, sustaining and starting fees shall be
4    held in trust accounts for the purposes as set forth in
5    this Act and in accordance with Section 205-15 of the
6    Department of Agriculture Law (20 ILCS 205/205-15).
7        5. Provide for the registration with the Department of
8    Agriculture of Colt Associations or county fairs desiring
9    to sponsor races at county fairs.
10        6. Provide for the promotion of producing standardbred
11    racehorses by providing a bonus award program for owners of
12    2-year-old horses that win multiple major stakes races that
13    are limited to Illinois conceived and foaled horses.
14    (k) The Department of Agriculture, with the advice and
15assistance of the Illinois Standardbred Breeders Fund Advisory
16Board, may allocate monies for purse supplements for such
17races. In determining whether to allocate money and the amount,
18the Department of Agriculture shall consider factors,
19including but not limited to, the amount of money appropriated
20for the Illinois Standardbred Breeders Fund program, the number
21of races that may occur, and an organizational licensee's purse
22structure. The organizational licensee shall notify the
23Department of Agriculture of the conditions and minimum purses
24for races limited to Illinois conceived and foaled horses to be
25conducted by each organizational licensee conducting a harness
26racing meeting for which purse supplements have been

 

 

HB5146- 307 -LRB100 18631 SMS 33856 b

1negotiated.
2    (l) All races held at county fairs and the State Fair which
3receive funds from the Illinois Standardbred Breeders Fund
4shall be conducted in accordance with the rules of the United
5States Trotting Association unless otherwise modified by the
6Department of Agriculture.
7    (m) At all standardbred race meetings held or conducted
8under authority of a license granted by the Board, and at all
9standardbred races held at county fairs which are approved by
10the Department of Agriculture or at the Illinois or DuQuoin
11State Fairs, no one shall jog, train, warm up or drive a
12standardbred horse unless he or she is wearing a protective
13safety helmet, with the chin strap fastened and in place, which
14meets the standards and requirements as set forth in the 1984
15Standard for Protective Headgear for Use in Harness Racing and
16Other Equestrian Sports published by the Snell Memorial
17Foundation, or any standards and requirements for headgear the
18Illinois Racing Board may approve. Any other standards and
19requirements so approved by the Board shall equal or exceed
20those published by the Snell Memorial Foundation. Any
21equestrian helmet bearing the Snell label shall be deemed to
22have met those standards and requirements.
23(Source: P.A. 99-756, eff. 8-12-16.)
 
24    (230 ILCS 5/32.1)
25    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack

 

 

HB5146- 308 -LRB100 18631 SMS 33856 b

1real estate equalization.
2    (a) In order to encourage new investment in Illinois
3racetrack facilities and mitigate differing real estate tax
4burdens among all racetracks, the licensees affiliated or
5associated with each racetrack that has been awarded live
6racing dates in the current year shall receive an immediate
7pari-mutuel tax credit in an amount equal to the greater of (i)
850% of the amount of the real estate taxes paid in the prior
9year attributable to that racetrack, or (ii) the amount by
10which the real estate taxes paid in the prior year attributable
11to that racetrack exceeds 60% of the average real estate taxes
12paid in the prior year for all racetracks awarded live horse
13racing meets in the current year.
14    Each year, regardless of whether the organization licensee
15conducted live racing in the year of certification, the Board
16shall certify in writing, prior to December 31, the real estate
17taxes paid in that year for each racetrack and the amount of
18the pari-mutuel tax credit that each organization licensee,
19inter-track wagering licensee, and inter-track wagering
20location licensee that derives its license from such racetrack
21is entitled in the succeeding calendar year. The real estate
22taxes considered under this Section for any racetrack shall be
23those taxes on the real estate parcels and related facilities
24used to conduct a horse race meeting and inter-track wagering
25at such racetrack under this Act. In no event shall the amount
26of the tax credit under this Section exceed the amount of

 

 

HB5146- 309 -LRB100 18631 SMS 33856 b

1pari-mutuel taxes otherwise calculated under this Act. The
2amount of the tax credit under this Section shall be retained
3by each licensee and shall not be subject to any reallocation
4or further distribution under this Act. The Board may
5promulgate emergency rules to implement this Section.
6    (b) If the organization licensee is operating electronic
7gaming, then, for the 5-year period beginning on the January 1
8of the calendar year immediately following the calendar year
9during which an organization licensee begins conducting
10electronic gaming operations pursuant to an electronic gaming
11license issued under the Illinois Gambling Act, the
12organization licensee shall make capital expenditures, in an
13amount equal to no less than 50% of the tax credit under this
14Section, to the improvement and maintenance of the backstretch,
15including, but not limited to, backstretch barns, dormitories,
16and services for backstretch workers. Those capital
17expenditures must be in addition to, and not in lieu of, the
18capital expenditures made for backstretch improvements in
19calendar year 2015, as reported to the Board in the
20organization licensee's application for racing dates and as
21certified by the Board. The organization licensee is required
22to annually submit the list and amounts of these capital
23expenditures to the Board by January 30th of the year following
24the expenditure.
25    (c) If the organization licensee is operating electronic
26gaming in accordance with paragraph (b), then, after the 5-year

 

 

HB5146- 310 -LRB100 18631 SMS 33856 b

1period beginning on January 1 of the calendar year immediately
2following the calendar year during which an organization
3licensee begins conducting electronic gaming operations
4pursuant to an electronic gaming license issued under the
5Illinois Gambling Act, the organization license is ineligible
6to receive a tax credit under this Section.
7(Source: P.A. 100-201, eff. 8-18-17.)
 
8    (230 ILCS 5/34.3 new)
9    Sec. 34.3. Drug testing. The Illinois Racing Board and the
10Department of Agriculture shall jointly establish a program for
11the purpose of conducting drug testing of horses at county
12fairs and shall adopt any rules necessary for enforcement of
13the program. The rules shall include appropriate penalties for
14violations.
 
15    (230 ILCS 5/36)   (from Ch. 8, par. 37-36)
16    Sec. 36. (a) Whoever administers or conspires to administer
17to any horse a hypnotic, narcotic, stimulant, depressant or any
18chemical substance which may affect the speed of a horse at any
19time in any race where the purse or any part of the purse is
20made of money authorized by any Section of this Act, except
21those chemical substances permitted by ruling of the Board,
22internally, externally or by hypodermic method in a race or
23prior thereto, or whoever knowingly enters a horse in any race
24within a period of 24 hours after any hypnotic, narcotic,

 

 

HB5146- 311 -LRB100 18631 SMS 33856 b

1stimulant, depressant or any other chemical substance which may
2affect the speed of a horse at any time, except those chemical
3substances permitted by ruling of the Board, has been
4administered to such horse either internally or externally or
5by hypodermic method for the purpose of increasing or retarding
6the speed of such horse shall be guilty of a Class 4 felony.
7The Board shall suspend or revoke such violator's license.
8    (b) The term "hypnotic" as used in this Section includes
9all barbituric acid preparations and derivatives.
10    (c) The term "narcotic" as used in this Section includes
11opium and all its alkaloids, salts, preparations and
12derivatives, cocaine and all its salts, preparations and
13derivatives and substitutes.
14    (d) The provisions of this Section 36 and the treatment
15authorized herein apply to horses entered in and competing in
16race meetings as defined in Section 3.07 of this Act and to
17horses entered in and competing at any county fair.
18(Source: P.A. 79-1185.)
 
19    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)
20    Sec. 40. (a) The imposition of any fine or penalty provided
21in this Act shall not preclude the Board in its rules and
22regulations from imposing a fine or penalty for any other
23action which, in the Board's discretion, is a detriment or
24impediment to horse racing.
25    (b) The Director of Agriculture or his or her authorized

 

 

HB5146- 312 -LRB100 18631 SMS 33856 b

1representative shall impose the following monetary penalties
2and hold administrative hearings as required for failure to
3submit the following applications, lists, or reports within the
4time period, date or manner required by statute or rule or for
5removing a foal from Illinois prior to inspection:
6        (1) late filing of a renewal application for offering
7    or standing stallion for service:
8            (A) if an application is submitted no more than 30
9        days late, $50;
10            (B) if an application is submitted no more than 45
11        days late, $150; or
12            (C) if an application is submitted more than 45
13        days late, if filing of the application is allowed
14        under an administrative hearing, $250;
15        (2) late filing of list or report of mares bred:
16            (A) if a list or report is submitted no more than
17        30 days late, $50;
18            (B) if a list or report is submitted no more than
19        60 days late, $150; or
20            (C) if a list or report is submitted more than 60
21        days late, if filing of the list or report is allowed
22        under an administrative hearing, $250;
23        (3) filing an Illinois foaled thoroughbred mare status
24    report after the statutory deadline as provided in
25    subsection (k) of Section 30 of this Act December 31:
26            (A) if a report is submitted no more than 30 days

 

 

HB5146- 313 -LRB100 18631 SMS 33856 b

1        late, $50;
2            (B) if a report is submitted no more than 90 days
3        late, $150;
4            (C) if a report is submitted no more than 150 days
5        late, $250; or
6            (D) if a report is submitted more than 150 days
7        late, if filing of the report is allowed under an
8        administrative hearing, $500;
9        (4) late filing of application for foal eligibility
10    certificate:
11            (A) if an application is submitted no more than 30
12        days late, $50;
13            (B) if an application is submitted no more than 90
14        days late, $150;
15            (C) if an application is submitted no more than 150
16        days late, $250; or
17            (D) if an application is submitted more than 150
18        days late, if filing of the application is allowed
19        under an administrative hearing, $500;
20        (5) failure to report the intent to remove a foal from
21    Illinois prior to inspection, identification and
22    certification by a Department of Agriculture investigator,
23    $50; and
24        (6) if a list or report of mares bred is incomplete,
25    $50 per mare not included on the list or report.
26    Any person upon whom monetary penalties are imposed under

 

 

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1this Section 3 times within a 5-year period shall have any
2further monetary penalties imposed at double the amounts set
3forth above. All monies assessed and collected for violations
4relating to thoroughbreds shall be paid into the Illinois
5Thoroughbred Breeders Fund. All monies assessed and collected
6for violations relating to standardbreds shall be paid into the
7Illinois Standardbred Breeders Fund.
8(Source: P.A. 99-933, eff. 1-27-17; 100-201, eff. 8-18-17.)
 
9    (230 ILCS 5/54.75)
10    Sec. 54.75. Horse Racing Equity Trust Fund.
11    (a) There is created a Fund to be known as the Horse Racing
12Equity Trust Fund, which is a non-appropriated trust fund held
13separate and apart from State moneys. The Fund shall consist of
14moneys paid into it by owners licensees under the Illinois
15Riverboat Gambling Act for the purposes described in this
16Section. The Fund shall be administered by the Board. Moneys in
17the Fund shall be distributed as directed and certified by the
18Board in accordance with the provisions of subsection (b).
19    (b) The moneys deposited into the Fund, plus any accrued
20interest on those moneys, shall be distributed within 10 days
21after those moneys are deposited into the Fund as follows:
22        (1) Sixty percent of all moneys distributed under this
23    subsection shall be distributed to organization licensees
24    to be distributed at their race meetings as purses.
25    Fifty-seven percent of the amount distributed under this

 

 

HB5146- 315 -LRB100 18631 SMS 33856 b

1    paragraph (1) shall be distributed for thoroughbred race
2    meetings and 43% shall be distributed for standardbred race
3    meetings. Within each breed, moneys shall be allocated to
4    each organization licensee's purse fund in accordance with
5    the ratio between the purses generated for that breed by
6    that licensee during the prior calendar year and the total
7    purses generated throughout the State for that breed during
8    the prior calendar year by licensees in the current
9    calendar year.
10        (2) The remaining 40% of the moneys distributed under
11    this subsection (b) shall be distributed as follows:
12            (A) 11% shall be distributed to any person (or its
13        successors or assigns) who had operating control of a
14        racetrack that conducted live racing in 2002 at a
15        racetrack in a county with at least 230,000 inhabitants
16        that borders the Mississippi River and is a licensee in
17        the current year; and
18            (B) the remaining 89% shall be distributed pro rata
19        according to the aggregate proportion of total handle
20        from wagering on live races conducted in Illinois
21        (irrespective of where the wagers are placed) for
22        calendar years 2004 and 2005 to any person (or its
23        successors or assigns) who (i) had majority operating
24        control of a racing facility at which live racing was
25        conducted in calendar year 2002, (ii) is a licensee in
26        the current year, and (iii) is not eligible to receive

 

 

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1        moneys under subparagraph (A) of this paragraph (2).
2            The moneys received by an organization licensee
3        under this paragraph (2) shall be used by each
4        organization licensee to improve, maintain, market,
5        and otherwise operate its racing facilities to conduct
6        live racing, which shall include backstretch services
7        and capital improvements related to live racing and the
8        backstretch. Any organization licensees sharing common
9        ownership may pool the moneys received and spent at all
10        racing facilities commonly owned in order to meet these
11        requirements.
12        If any person identified in this paragraph (2) becomes
13    ineligible to receive moneys from the Fund, such amount
14    shall be redistributed among the remaining persons in
15    proportion to their percentages otherwise calculated.
16    (c) The Board shall monitor organization licensees to
17ensure that moneys paid to organization licensees under this
18Section are distributed by the organization licensees as
19provided in subsection (b).
20(Source: P.A. 95-1008, eff. 12-15-08.)
 
21    (230 ILCS 5/56 new)
22    Sec. 56. Electronic gaming.
23    (a) A person, firm, corporation, or limited liability
24company having operating control of a race track may apply to
25the Gaming Board for an electronic gaming license. An

 

 

HB5146- 317 -LRB100 18631 SMS 33856 b

1electronic gaming license shall authorize its holder to conduct
2electronic gaming on the grounds of the race track of which the
3electronic gaming licensee has operating control. Only one
4electronic gaming license may be awarded for any race track. A
5holder of an electronic gaming license shall be subject to the
6Illinois Gambling Act and rules of the Illinois Gaming Board
7concerning electronic gaming. If the person, firm,
8corporation, or limited liability company having operating
9control of a race track is found by the Illinois Gaming Board
10to be unsuitable for an electronic gaming license under the
11Illinois Gambling Act and rules of the Gaming Board, that
12person, firm, corporation, or limited liability company shall
13not be granted an electronic gaming license. Each license shall
14specify the number of gaming positions that its holder may
15operate.
16    An electronic gaming licensee may not permit persons under
1721 years of age to be present in its electronic gaming
18facility, but the licensee may accept wagers on live racing and
19inter-track wagers at its electronic gaming facility.
20    (b) For purposes of this subsection, "adjusted gross
21receipts" means an electronic gaming licensee's gross receipts
22less winnings paid to wagerers and shall also include any
23amounts that would otherwise be deducted pursuant to subsection
24(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
25gross receipts by an electronic gaming licensee from electronic
26gaming remaining after the payment of taxes under Section 13 of

 

 

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1the Illinois Gambling Act shall be distributed as follows:
2        (1) Amounts shall be paid to the purse account at the
3    track at which the organization licensee is conducting
4    racing equal to the following:
5            12.75% of annual adjusted gross receipts up to and
6        including $75,000,000;
7            20% of annual adjusted gross receipts in excess of
8        $75,000,000 but not exceeding $100,000,000;
9            26.5% of annual adjusted gross receipts in excess
10        of $100,000,000 but not exceeding $125,000,000; and
11            20.5% of annual adjusted gross receipts in excess
12        of $125,000,000.
13        (2) The remainder shall be retained by the electronic
14    gaming licensee.
15    (c) Electronic gaming receipts placed into the purse
16account of an organization licensee racing thoroughbred horses
17shall be used for purses, for health care services or worker's
18compensation for racing industry workers, for equine research,
19for programs to care for and transition injured and retired
20thoroughbred horses that race at the race track, or for horse
21ownership promotion, in accordance with the agreement of the
22horsemen's association representing the largest number of
23owners and trainers who race at that organization licensee's
24race meetings.
25    Annually, from the purse account of an organization
26licensee racing thoroughbred horses in this State, except for

 

 

HB5146- 319 -LRB100 18631 SMS 33856 b

1in Madison County, an amount equal to 12% of the electronic
2gaming receipts placed into the purse accounts shall be paid to
3the Illinois Thoroughbred Breeders Fund and shall be used for
4owner awards; a stallion program pursuant to paragraph (3) of
5subsection (g) of Section 30 of this Act; and Illinois
6conceived and foaled stakes races pursuant to paragraph (2) of
7subsection (g) of Section 30 of this Act, as specifically
8designated by the horsemen's association representing the
9largest number of owners and trainers who race at the
10organization licensee's race meetings.
11    Annually, from the purse account of an organization
12licensee racing thoroughbred horses in Madison County, an
13amount equal to 10% of the electronic gaming receipts placed
14into the purse accounts shall be paid to the Illinois
15Thoroughbred Breeders Fund and shall be used for owner awards;
16a stallion program pursuant to paragraph (3) of subsection (g)
17of Section 30 of this Act; and Illinois conceived and foaled
18stakes races pursuant to paragraph (2) of subsection (g) of
19Section 30 of this Act, as specifically designated by the
20horsemen's association representing the largest number of
21owners and trainers who race at the organization licensee's
22race meetings.
23    Annually, from the purse account of an organization
24licensee conducting thoroughbred races at a race track in
25Madison County, an amount equal to 1% of the electronic gaming
26receipts distributed to purses per subsection (b) of this

 

 

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1Section 56 shall be paid as follows: 0.33 1/3% to Southern
2Illinois University Department of Animal Sciences for equine
3research and education, an amount equal to 0.33 1/3% of the
4electronic gaming receipts shall be used to operate laundry
5facilities or a kitchen for backstretch workers at that race
6track, and an amount equal to 0.33 1/3% of the electronic
7gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)
8non-profit organization that cares for injured and unwanted
9horses that race at that race track.
10    Annually, from the purse account of organization licensees
11conducting thoroughbred races at race tracks in Cook County,
12$100,000 shall be paid for division and equal distribution to
13the animal sciences department of each Illinois public
14university system engaged in equine research and education on
15or before the effective date of this amendatory Act of the
16100th General Assembly for equine research and education.
17    (d) Annually, from the purse account of an organization
18licensee racing standardbred horses, an amount equal to 15% of
19the electronic gaming receipts placed into that purse account
20shall be paid to the Illinois Colt Stakes Purse Distribution
21Fund. Moneys deposited into the Illinois Colt Stakes Purse
22Distribution Fund shall be used for standardbred racing as
23authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
24subsection (g) of Section 31 of this Act and for bonus awards
25as authorized under paragraph 6 of subsection (j) of Section 31
26of this Act.
 

 

 

HB5146- 321 -LRB100 18631 SMS 33856 b

1    Section 90-40. The Riverboat Gambling Act is amended by
2changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
311.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
4and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,
57.12, 7.13, and 25 as follows:
 
6    (230 ILCS 10/1)  (from Ch. 120, par. 2401)
7    Sec. 1. Short title. This Act shall be known and may be
8cited as the Illinois Riverboat Gambling Act.
9(Source: P.A. 86-1029.)
 
10    (230 ILCS 10/2)  (from Ch. 120, par. 2402)
11    Sec. 2. Legislative Intent.
12    (a) This Act is intended to benefit the people of the State
13of Illinois by assisting economic development, and promoting
14Illinois tourism, and by increasing the amount of revenues
15available to the State to assist and support education, and to
16defray State expenses, including unpaid bills.
17    (b) While authorization of riverboat and casino gambling
18will enhance investment, beautification, development and
19tourism in Illinois, it is recognized that it will do so
20successfully only if public confidence and trust in the
21credibility and integrity of the gambling operations and the
22regulatory process is maintained. Therefore, regulatory
23provisions of this Act are designed to strictly regulate the

 

 

HB5146- 322 -LRB100 18631 SMS 33856 b

1facilities, persons, associations and practices related to
2gambling operations pursuant to the police powers of the State,
3including comprehensive law enforcement supervision.
4    (c) The Illinois Gaming Board established under this Act
5should, as soon as possible, inform each applicant for an
6owners license of the Board's intent to grant or deny a
7license.
8(Source: P.A. 93-28, eff. 6-20-03.)
 
9    (230 ILCS 10/3)  (from Ch. 120, par. 2403)
10    Sec. 3. Riverboat Gambling Authorized.
11    (a) Riverboat and casino gambling operations and
12electronic gaming operations and the system of wagering
13incorporated therein, as defined in this Act, are hereby
14authorized to the extent that they are carried out in
15accordance with the provisions of this Act.
16    (b) This Act does not apply to the pari-mutuel system of
17wagering used or intended to be used in connection with the
18horse-race meetings as authorized under the Illinois Horse
19Racing Act of 1975, lottery games authorized under the Illinois
20Lottery Law, bingo authorized under the Bingo License and Tax
21Act, charitable games authorized under the Charitable Games Act
22or pull tabs and jar games conducted under the Illinois Pull
23Tabs and Jar Games Act. This Act applies to electronic gaming
24authorized under the Illinois Horse Racing Act of 1975 to the
25extent provided in that Act and in this Act.

 

 

HB5146- 323 -LRB100 18631 SMS 33856 b

1    (c) Riverboat gambling conducted pursuant to this Act may
2be authorized upon any water within the State of Illinois or
3any water other than Lake Michigan which constitutes a boundary
4of the State of Illinois. Notwithstanding any provision in this
5subsection (c) to the contrary, a licensee that receives its
6license pursuant to subsection (e-5) of Section 7 may conduct
7riverboat gambling on Lake Michigan from a home dock located on
8Lake Michigan subject to any limitations contained in Section
97. Notwithstanding any provision in this subsection (c) to the
10contrary, a licensee may conduct gambling at its home dock
11facility as provided in Sections 7 and 11. A licensee may
12conduct riverboat gambling authorized under this Act
13regardless of whether it conducts excursion cruises. A licensee
14may permit the continuous ingress and egress of passengers for
15the purpose of gambling.
16    (d) Gambling that is conducted in accordance with this Act
17using slot machines and video games of chance and other
18electronic gambling games as defined in both this Act and the
19Illinois Horse Racing Act of 1975 is authorized.
20(Source: P.A. 91-40, eff. 6-25-99.)
 
21    (230 ILCS 10/4)  (from Ch. 120, par. 2404)
22    Sec. 4. Definitions. As used in this Act:
23    (a) "Board" means the Illinois Gaming Board.
24    (b) "Occupational license" means a license issued by the
25Board to a person or entity to perform an occupation which the

 

 

HB5146- 324 -LRB100 18631 SMS 33856 b

1Board has identified as requiring a license to engage in
2riverboat gambling, casino gambling, or electronic gaming in
3Illinois.
4    (c) "Gambling game" includes, but is not limited to,
5baccarat, twenty-one, poker, craps, slot machine, video game of
6chance, roulette wheel, klondike table, punchboard, faro
7layout, keno layout, numbers ticket, push card, jar ticket, or
8pull tab which is authorized by the Board as a wagering device
9under this Act.
10    (d) "Riverboat" means a self-propelled excursion boat, a
11permanently moored barge, or permanently moored barges that are
12permanently fixed together to operate as one vessel, on which
13lawful gambling is authorized and licensed as provided in this
14Act.
15    "Slot machine" means any mechanical, electrical, or other
16device, contrivance, or machine that is authorized by the Board
17as a wagering device under this Act which, upon insertion of a
18coin, currency, token, or similar object therein, or upon
19payment of any consideration whatsoever, is available to play
20or operate, the play or operation of which may deliver or
21entitle the person playing or operating the machine to receive
22cash, premiums, merchandise, tokens, or anything of value
23whatsoever, whether the payoff is made automatically from the
24machine or in any other manner whatsoever. A slot machine:
25        (1) may utilize spinning reels or video displays or
26    both;

 

 

HB5146- 325 -LRB100 18631 SMS 33856 b

1        (2) may or may not dispense coins, tickets, or tokens
2    to winning patrons;
3        (3) may use an electronic credit system for receiving
4    wagers and making payouts; and
5        (4) may simulate a table game.
6    "Slot machine" does not include table games authorized by
7the Board as a wagering device under this Act.
8    (e) "Managers license" means a license issued by the Board
9to a person or entity to manage gambling operations conducted
10by the State pursuant to Section 7.3.
11    (f) "Dock" means the location where a riverboat moors for
12the purpose of embarking passengers for and disembarking
13passengers from the riverboat.
14    (g) "Gross receipts" means the total amount of money
15exchanged for the purchase of chips, tokens, or electronic
16cards by riverboat patrons.
17    (h) "Adjusted gross receipts" means the gross receipts less
18winnings paid to wagerers.
19    (i) "Cheat" means to alter the selection of criteria which
20determine the result of a gambling game or the amount or
21frequency of payment in a gambling game.
22    (j) (Blank).
23    (k) "Gambling operation" means the conduct of authorized
24gambling games authorized under this Act upon a riverboat or in
25a casino or authorized under this Act and the Illinois Horse
26Racing Act of 1975 at an electronic gaming facility.

 

 

HB5146- 326 -LRB100 18631 SMS 33856 b

1    (l) "License bid" means the lump sum amount of money that
2an applicant bids and agrees to pay the State in return for an
3owners license that is issued or re-issued on or after July 1,
42003.
5    "Table game" means a live gaming apparatus upon which
6gaming is conducted or that determines an outcome that is the
7object of a wager, including, but not limited to, baccarat,
8twenty-one, blackjack, poker, craps, roulette wheel, klondike
9table, punchboard, faro layout, keno layout, numbers ticket,
10push card, jar ticket, pull tab, or other similar games that
11are authorized by the Board as a wagering device under this
12Act. "Table game" does not include slot machines or video games
13of chance.
14    (m) The terms "minority person", "woman", and "person with
15a disability" shall have the same meaning as defined in Section
162 of the Business Enterprise for Minorities, Women, and Persons
17with Disabilities Act.
18    "Authority" means the Chicago Casino Development
19Authority.
20    "Casino" means a facility at which lawful gambling is
21authorized as provided in this Act.
22    "Owners license" means a license to conduct riverboat or
23casino gambling operations, but does not include an electronic
24gaming license.
25    "Licensed owner" means a person who holds an owners
26license.

 

 

HB5146- 327 -LRB100 18631 SMS 33856 b

1    "Electronic gaming" means slot machine gambling, video
2game of chance gambling, or gambling with electronic gambling
3games as defined in this Act or defined by the Board that is
4conducted at a race track pursuant to an electronic gaming
5license.
6    "Electronic gaming facility" means the area where the Board
7has authorized electronic gaming at a race track of an
8organization licensee under the Illinois Horse Racing Act of
91975 that holds an electronic gaming license.
10    "Electronic gaming license" means a license issued by the
11Board under Section 7.7 of this Act authorizing electronic
12gaming at an electronic gaming facility.
13    "Electronic gaming licensee" means an entity that holds an
14electronic gaming license.
15    "Organization licensee" means an entity authorized by the
16Illinois Racing Board to conduct pari-mutuel wagering in
17accordance with the Illinois Horse Racing Act of 1975. With
18respect only to electronic gaming, "organization licensee"
19includes the authorization for electronic gaming created under
20subsection (a) of Section 56 of the Illinois Horse Racing Act
21of 1975.
22    "Casino operator license" means the license held by the
23person or entity selected by the Authority to manage and
24operate a riverboat or casino within the geographic area of the
25authorized municipality pursuant to this Act and the Chicago
26Casino Development Authority Act.

 

 

HB5146- 328 -LRB100 18631 SMS 33856 b

1    "Wide area progressive system" means a method of linking
2progressive slot machines or electronic gaming machines across
3telecommunication lines as part of a network connecting
4participating facilities. Wide area progressive systems offer
5a common progressive jackpot at all participating locations and
6the award of the jackpot is at random.
7(Source: P.A. 100-391, eff. 8-25-17.)
 
8    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
9    Sec. 5. Gaming Board.
10    (a) (1) There is hereby established the Illinois Gaming
11Board, which shall have the powers and duties specified in this
12Act and in the Chicago Casino Development Authority Act, and
13all other powers necessary and proper to fully and effectively
14execute this Act for the purpose of administering, regulating,
15and enforcing the system of riverboat and casino gambling and
16electronic gaming established by this Act and by the Chicago
17Casino Development Authority Act. Its jurisdiction shall
18extend under this Act and the Chicago Casino Development
19Authority Act to every person, association, corporation,
20partnership and trust involved in riverboat and casino gambling
21operations and electronic gaming in the State of Illinois.
22    (2) The Board shall consist of 5 members to be appointed by
23the Governor with the advice and consent of the Senate, one of
24whom shall be designated by the Governor to be chairperson
25chairman. Each member shall have a reasonable knowledge of the

 

 

HB5146- 329 -LRB100 18631 SMS 33856 b

1practice, procedure and principles of gambling operations.
2Each member shall either be a resident of Illinois or shall
3certify that he or she will become a resident of Illinois
4before taking office.
5    On and after the effective date of this amendatory Act of
6the 100th General Assembly, new appointees to the Board must
7include the following:
8        (A) One member who has received, at a minimum, a
9    bachelor's degree from an accredited school and at least 10
10    years of verifiable training and experience in the fields
11    of investigation and law enforcement.
12        (B) One member who is a certified public accountant
13    with experience in auditing and with knowledge of complex
14    corporate structures and transactions.
15        (C) One member who has 5 years' experience as a
16    principal, senior officer, or director of a company or
17    business with either material responsibility for the daily
18    operations and management of the overall company or
19    business or material responsibility for the policy making
20    of the company or business.
21        (D) One member who is a lawyer licensed to practice law
22    in Illinois.
23    Notwithstanding any provision of this subsection (a), the
24requirements of subparagraphs (A) through (D) of this paragraph
25(2) shall not apply to any person reappointed pursuant to
26paragraph (3).

 

 

HB5146- 330 -LRB100 18631 SMS 33856 b

1    No more than 3 members of the Board may be from the same
2political party. The Board should reflect the ethnic, cultural,
3and geographic diversity of the State. No Board member shall,
4within a period of one year immediately preceding nomination,
5have been employed or received compensation or fees for
6services from a person or entity, or its parent or affiliate,
7that has engaged in business with the Board, a licensee, or a
8licensee under the Illinois Horse Racing Act of 1975. Board
9members must publicly disclose all prior affiliations with
10gaming interests, including any compensation, fees, bonuses,
11salaries, and other reimbursement received from a person or
12entity, or its parent or affiliate, that has engaged in
13business with the Board, a licensee, or a licensee under the
14Illinois Horse Racing Act of 1975. This disclosure must be made
15within 30 days after nomination but prior to confirmation by
16the Senate and must be made available to the members of the
17Senate. At least one member shall be experienced in law
18enforcement and criminal investigation, at least one member
19shall be a certified public accountant experienced in
20accounting and auditing, and at least one member shall be a
21lawyer licensed to practice law in Illinois.
22    (3) The terms of office of the Board members shall be 3
23years, except that the terms of office of the initial Board
24members appointed pursuant to this Act will commence from the
25effective date of this Act and run as follows: one for a term
26ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for

 

 

HB5146- 331 -LRB100 18631 SMS 33856 b

1a term ending July 1, 1993. Upon the expiration of the
2foregoing terms, the successors of such members shall serve a
3term for 3 years and until their successors are appointed and
4qualified for like terms. Vacancies in the Board shall be
5filled for the unexpired term in like manner as original
6appointments. Each member of the Board shall be eligible for
7reappointment at the discretion of the Governor with the advice
8and consent of the Senate.
9    (4) Each member of the Board shall receive $300 for each
10day the Board meets and for each day the member conducts any
11hearing pursuant to this Act. Each member of the Board shall
12also be reimbursed for all actual and necessary expenses and
13disbursements incurred in the execution of official duties.
14    (5) No person shall be appointed a member of the Board or
15continue to be a member of the Board who is, or whose spouse,
16child or parent is, a member of the board of directors of, or a
17person financially interested in, any gambling operation
18subject to the jurisdiction of this Board, or any race track,
19race meeting, racing association or the operations thereof
20subject to the jurisdiction of the Illinois Racing Board. No
21Board member shall hold any other public office. No person
22shall be a member of the Board who is not of good moral
23character or who has been convicted of, or is under indictment
24for, a felony under the laws of Illinois or any other state, or
25the United States.
26    (5.5) No member of the Board shall engage in any political

 

 

HB5146- 332 -LRB100 18631 SMS 33856 b

1activity. For the purposes of this Section, "political" means
2any activity in support of or in connection with any campaign
3for federal, State, or local elective office or any political
4organization, but does not include activities (i) relating to
5the support or opposition of any executive, legislative, or
6administrative action (as those terms are defined in Section 2
7of the Lobbyist Registration Act), (ii) relating to collective
8bargaining, or (iii) that are otherwise in furtherance of the
9person's official State duties or governmental and public
10service functions.
11    (6) Any member of the Board may be removed by the Governor
12for neglect of duty, misfeasance, malfeasance, or nonfeasance
13in office or for engaging in any political activity.
14    (7) Before entering upon the discharge of the duties of his
15office, each member of the Board shall take an oath that he
16will faithfully execute the duties of his office according to
17the laws of the State and the rules and regulations adopted
18therewith and shall give bond to the State of Illinois,
19approved by the Governor, in the sum of $25,000. Every such
20bond, when duly executed and approved, shall be recorded in the
21office of the Secretary of State. Whenever the Governor
22determines that the bond of any member of the Board has become
23or is likely to become invalid or insufficient, he shall
24require such member forthwith to renew his bond, which is to be
25approved by the Governor. Any member of the Board who fails to
26take oath and give bond within 30 days from the date of his

 

 

HB5146- 333 -LRB100 18631 SMS 33856 b

1appointment, or who fails to renew his bond within 30 days
2after it is demanded by the Governor, shall be guilty of
3neglect of duty and may be removed by the Governor. The cost of
4any bond given by any member of the Board under this Section
5shall be taken to be a part of the necessary expenses of the
6Board.
7    (7.5) For the examination of all mechanical,
8electromechanical, or electronic table games, slot machines,
9slot accounting systems, and other electronic gaming equipment
10for compliance with this Act, the Board may utilize the
11services of one or more independent outside testing
12laboratories that have been accredited by a national
13accreditation body and that, in the judgment of the Board, are
14qualified to perform such examinations.
15    (8) The Board shall employ such personnel as may be
16necessary to carry out its functions and shall determine the
17salaries of all personnel, except those personnel whose
18salaries are determined under the terms of a collective
19bargaining agreement. No person shall be employed to serve the
20Board who is, or whose spouse, parent or child is, an official
21of, or has a financial interest in or financial relation with,
22any operator engaged in gambling operations within this State
23or any organization engaged in conducting horse racing within
24this State. For the one year immediately preceding employment,
25an employee shall not have been employed or received
26compensation or fees for services from a person or entity, or

 

 

HB5146- 334 -LRB100 18631 SMS 33856 b

1its parent or affiliate, that has engaged in business with the
2Board, a licensee, or a licensee under the Illinois Horse
3Racing Act of 1975. Any employee violating these prohibitions
4shall be subject to termination of employment. In addition, all
5Board members and employees are subject to the restrictions set
6forth in Section 5-45 of the State Officials and Employees
7Ethics Act.
8    (9) An Administrator shall perform any and all duties that
9the Board shall assign him. The salary of the Administrator
10shall be determined by the Board and, in addition, he shall be
11reimbursed for all actual and necessary expenses incurred by
12him in discharge of his official duties. The Administrator
13shall keep records of all proceedings of the Board and shall
14preserve all records, books, documents and other papers
15belonging to the Board or entrusted to its care. The
16Administrator shall devote his full time to the duties of the
17office and shall not hold any other office or employment.
18    (b) The Board shall have general responsibility for the
19implementation of this Act. Its duties include, without
20limitation, the following:
21        (1) To decide promptly and in reasonable order all
22    license applications. Any party aggrieved by an action of
23    the Board denying, suspending, revoking, restricting or
24    refusing to renew a license may request a hearing before
25    the Board. A request for a hearing must be made to the
26    Board in writing within 5 days after service of notice of

 

 

HB5146- 335 -LRB100 18631 SMS 33856 b

1    the action of the Board. Notice of the action of the Board
2    shall be served either by personal delivery or by certified
3    mail, postage prepaid, to the aggrieved party. Notice
4    served by certified mail shall be deemed complete on the
5    business day following the date of such mailing. The Board
6    shall conduct all requested hearings promptly and in
7    reasonable order;
8        (2) To conduct all hearings pertaining to civil
9    violations of this Act or rules and regulations promulgated
10    hereunder;
11        (3) To promulgate such rules and regulations as in its
12    judgment may be necessary to protect or enhance the
13    credibility and integrity of gambling operations
14    authorized by this Act and the regulatory process
15    hereunder;
16        (4) To provide for the establishment and collection of
17    all license and registration fees and taxes imposed by this
18    Act and the rules and regulations issued pursuant hereto.
19    All such fees and taxes shall be deposited into the State
20    Gaming Fund;
21        (5) To provide for the levy and collection of penalties
22    and fines for the violation of provisions of this Act and
23    the rules and regulations promulgated hereunder. All such
24    fines and penalties shall be deposited into the Education
25    Assistance Fund, created by Public Act 86-0018, of the
26    State of Illinois;

 

 

HB5146- 336 -LRB100 18631 SMS 33856 b

1        (6) To be present through its inspectors and agents any
2    time gambling operations are conducted on any riverboat, in
3    any casino, or at any electronic gaming facility for the
4    purpose of certifying the revenue thereof, receiving
5    complaints from the public, and conducting such other
6    investigations into the conduct of the gambling games and
7    the maintenance of the equipment as from time to time the
8    Board may deem necessary and proper;
9        (7) To review and rule upon any complaint by a licensee
10    regarding any investigative procedures of the State which
11    are unnecessarily disruptive of gambling operations. The
12    need to inspect and investigate shall be presumed at all
13    times. The disruption of a licensee's operations shall be
14    proved by clear and convincing evidence, and establish
15    that: (A) the procedures had no reasonable law enforcement
16    purposes, and (B) the procedures were so disruptive as to
17    unreasonably inhibit gambling operations;
18        (8) To hold at least one meeting each quarter of the
19    fiscal year. In addition, special meetings may be called by
20    the Chairman or any 2 Board members upon 72 hours written
21    notice to each member. All Board meetings shall be subject
22    to the Open Meetings Act. Three members of the Board shall
23    constitute a quorum, and 3 votes shall be required for any
24    final determination by the Board. The Board shall keep a
25    complete and accurate record of all its meetings. A
26    majority of the members of the Board shall constitute a

 

 

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1    quorum for the transaction of any business, for the
2    performance of any duty, or for the exercise of any power
3    which this Act requires the Board members to transact,
4    perform or exercise en banc, except that, upon order of the
5    Board, one of the Board members or an administrative law
6    judge designated by the Board may conduct any hearing
7    provided for under this Act or by Board rule and may
8    recommend findings and decisions to the Board. The Board
9    member or administrative law judge conducting such hearing
10    shall have all powers and rights granted to the Board in
11    this Act. The record made at the time of the hearing shall
12    be reviewed by the Board, or a majority thereof, and the
13    findings and decision of the majority of the Board shall
14    constitute the order of the Board in such case;
15        (9) To maintain records which are separate and distinct
16    from the records of any other State board or commission.
17    Such records shall be available for public inspection and
18    shall accurately reflect all Board proceedings;
19        (10) To file a written annual report with the Governor
20    on or before March 1 each year and such additional reports
21    as the Governor may request. The annual report shall
22    include a statement of receipts and disbursements by the
23    Board, actions taken by the Board, and any additional
24    information and recommendations which the Board may deem
25    valuable or which the Governor may request;
26        (11) (Blank);

 

 

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1        (12) (Blank);
2        (13) To assume responsibility for administration and
3    enforcement of the Video Gaming Act; and
4        (13.1) To assume responsibility for the administration
5    and enforcement of operations at electronic gaming
6    facilities pursuant to this Act and the Illinois Horse
7    Racing Act of 1975;
8        (13.2) To assume responsibility for the administration
9    and enforcement of gambling operations at the Chicago
10    Casino Development Authority's casino pursuant to this Act
11    and the Chicago Casino Development Authority Act; and
12        (14) To adopt, by rule, a code of conduct governing
13    Board members and employees that ensure, to the maximum
14    extent possible, that persons subject to this Code avoid
15    situations, relationships, or associations that may
16    represent or lead to a conflict of interest.
17    Internal controls and changes submitted by licensees must
18be reviewed and either approved or denied with cause within 90
19days after receipt of submission is deemed final by the
20Illinois Gaming Board. In the event an internal control
21submission or change does not meet the standards set by the
22Board, staff of the Board must provide technical assistance to
23the licensee to rectify such deficiencies within 90 days after
24the initial submission and the revised submission must be
25reviewed and approved or denied with cause within 90 days after
26the date the revised submission is deemed final by the Board.

 

 

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1For the purposes of this paragraph, "with cause" means that the
2approval of the submission would jeopardize the integrity of
3gaming. In the event the Board staff has not acted within the
4timeframe, the submission shall be deemed approved.
5    (c) The Board shall have jurisdiction over and shall
6supervise all gambling operations governed by this Act and the
7Chicago Casino Development Authority Act. The Board shall have
8all powers necessary and proper to fully and effectively
9execute the provisions of this Act and the Chicago Casino
10Development Authority Act, including, but not limited to, the
11following:
12        (1) To investigate applicants and determine the
13    eligibility of applicants for licenses and to select among
14    competing applicants the applicants which best serve the
15    interests of the citizens of Illinois.
16        (2) To have jurisdiction and supervision over all
17    riverboat gambling operations authorized under this Act
18    and the Chicago Casino Development Authority Act in this
19    State and all persons in places on riverboats where
20    gambling operations are conducted.
21        (3) To promulgate rules and regulations for the purpose
22    of administering the provisions of this Act and the Chicago
23    Casino Development Authority Act and to prescribe rules,
24    regulations and conditions under which all riverboat
25    gambling operations subject to this Act and the Chicago
26    Casino Development Authority Act in the State shall be

 

 

HB5146- 340 -LRB100 18631 SMS 33856 b

1    conducted. Such rules and regulations are to provide for
2    the prevention of practices detrimental to the public
3    interest and for the best interests of riverboat gambling,
4    including rules and regulations regarding the inspection
5    of electronic gaming facilities, casinos, and such
6    riverboats, and the review of any permits or licenses
7    necessary to operate a riverboat, casino, or electronic
8    gaming facilities under any laws or regulations applicable
9    to riverboats, casinos, or electronic gaming facilities
10    and to impose penalties for violations thereof.
11        (4) To enter the office, riverboats, casinos,
12    electronic gaming facilities, and other facilities, or
13    other places of business of a licensee, where evidence of
14    the compliance or noncompliance with the provisions of this
15    Act and the Chicago Casino Development Authority Act is
16    likely to be found.
17        (5) To investigate alleged violations of this Act, the
18    Chicago Casino Development Authority Act, or the rules of
19    the Board and to take appropriate disciplinary action
20    against a licensee or a holder of an occupational license
21    for a violation, or institute appropriate legal action for
22    enforcement, or both.
23        (6) To adopt standards for the licensing of all persons
24    and entities under this Act and the Chicago Casino
25    Development Authority Act, as well as for electronic or
26    mechanical gambling games, and to establish fees for such

 

 

HB5146- 341 -LRB100 18631 SMS 33856 b

1    licenses.
2        (7) To adopt appropriate standards for all electronic
3    gaming facilities, riverboats, casinos, and other
4    facilities authorized under this Act and the Chicago Casino
5    Development Authority Act.
6        (8) To require that the records, including financial or
7    other statements of any licensee under this Act and the
8    Chicago Casino Development Authority Act, shall be kept in
9    such manner as prescribed by the Board and that any such
10    licensee involved in the ownership or management of
11    gambling operations submit to the Board an annual balance
12    sheet and profit and loss statement, list of the
13    stockholders or other persons having a 1% or greater
14    beneficial interest in the gambling activities of each
15    licensee, and any other information the Board deems
16    necessary in order to effectively administer this Act and
17    the Chicago Casino Development Authority Act and all rules,
18    regulations, orders and final decisions promulgated under
19    this Act and the Chicago Casino Development Authority Act.
20        (9) To conduct hearings, issue subpoenas for the
21    attendance of witnesses and subpoenas duces tecum for the
22    production of books, records and other pertinent documents
23    in accordance with the Illinois Administrative Procedure
24    Act, and to administer oaths and affirmations to the
25    witnesses, when, in the judgment of the Board, it is
26    necessary to administer or enforce this Act, the Chicago

 

 

HB5146- 342 -LRB100 18631 SMS 33856 b

1    Casino Development Authority Act, or the Board rules.
2        (10) To prescribe a form to be used by any licensee
3    involved in the ownership or management of gambling
4    operations as an application for employment for their
5    employees.
6        (11) To revoke or suspend licenses, other than the
7    license issued to the Chicago Casino Development
8    Authority, as the Board may see fit and in compliance with
9    applicable laws of the State regarding administrative
10    procedures, and to review applications for the renewal of
11    licenses. The Board may suspend an owners license (other
12    than the license issued to the Chicago Casino Development
13    Authority), electronic gaming license, or casino operator
14    license, without notice or hearing upon a determination
15    that the safety or health of patrons or employees is
16    jeopardized by continuing a gambling operation conducted
17    under that license riverboat's operation. The suspension
18    may remain in effect until the Board determines that the
19    cause for suspension has been abated. The Board may revoke
20    an the owners license (other than the license issued to the
21    Chicago Casino Development Authority), electronic gaming
22    license, or casino operator license upon a determination
23    that the licensee owner has not made satisfactory progress
24    toward abating the hazard.
25        (12) To eject or exclude or authorize the ejection or
26    exclusion of, any person from riverboat gambling

 

 

HB5146- 343 -LRB100 18631 SMS 33856 b

1    facilities where that such person is in violation of this
2    Act or the Chicago Casino Development Authority Act, rules
3    and regulations thereunder, or final orders of the Board,
4    or where such person's conduct or reputation is such that
5    his or her presence within the riverboat gambling
6    facilities may, in the opinion of the Board, call into
7    question the honesty and integrity of the gambling
8    operations or interfere with the orderly conduct thereof;
9    provided that the propriety of such ejection or exclusion
10    is subject to subsequent hearing by the Board.
11        (13) To require all licensees of gambling operations to
12    utilize a cashless wagering system whereby all players'
13    money is converted to tokens, electronic cards, or chips
14    which shall be used only for wagering in the gambling
15    establishment.
16        (14) (Blank).
17        (15) To suspend, revoke or restrict licenses, other
18    than the license issued to the Chicago Casino Development
19    Authority, to require the removal of a licensee or an
20    employee of a licensee for a violation of this Act, the
21    Chicago Casino Development Authority Act, or a Board rule
22    or for engaging in a fraudulent practice, and to impose
23    civil penalties of up to $5,000 against individuals and up
24    to $10,000 or an amount equal to the daily gross receipts,
25    whichever is larger, against licensees for each violation
26    of any provision of the Act, the Chicago Casino Development

 

 

HB5146- 344 -LRB100 18631 SMS 33856 b

1    Authority Act, any rules adopted by the Board, any order of
2    the Board or any other action which, in the Board's
3    discretion, is a detriment or impediment to riverboat
4    gambling operations.
5        (16) To hire employees to gather information, conduct
6    investigations and carry out any other tasks contemplated
7    under this Act or the Chicago Casino Development Authority
8    Act.
9        (17) To establish minimum levels of insurance to be
10    maintained by licensees.
11        (18) To authorize a licensee to sell or serve alcoholic
12    liquors, wine or beer as defined in the Liquor Control Act
13    of 1934 on board a riverboat or in a casino and to have
14    exclusive authority to establish the hours for sale and
15    consumption of alcoholic liquor on board a riverboat or in
16    a casino, notwithstanding any provision of the Liquor
17    Control Act of 1934 or any local ordinance, and regardless
18    of whether the riverboat makes excursions. The
19    establishment of the hours for sale and consumption of
20    alcoholic liquor on board a riverboat or in a casino is an
21    exclusive power and function of the State. A home rule unit
22    may not establish the hours for sale and consumption of
23    alcoholic liquor on board a riverboat or in a casino. This
24    subdivision (18) amendatory Act of 1991 is a denial and
25    limitation of home rule powers and functions under
26    subsection (h) of Section 6 of Article VII of the Illinois

 

 

HB5146- 345 -LRB100 18631 SMS 33856 b

1    Constitution.
2        (19) After consultation with the U.S. Army Corps of
3    Engineers, to establish binding emergency orders upon the
4    concurrence of a majority of the members of the Board
5    regarding the navigability of water, relative to
6    excursions, in the event of extreme weather conditions,
7    acts of God or other extreme circumstances.
8        (20) To delegate the execution of any of its powers
9    under this Act or the Chicago Casino Development Authority
10    Act for the purpose of administering and enforcing this
11    Act, the Chicago Casino Development Authority Act, and the
12    its rules adopted by the Board under both Acts and
13    regulations hereunder.
14        (20.5) To approve any contract entered into on its
15    behalf.
16        (20.6) To appoint investigators to conduct
17    investigations, searches, seizures, arrests, and other
18    duties imposed under this Act, as deemed necessary by the
19    Board. These investigators have and may exercise all of the
20    rights and powers of peace officers, provided that these
21    powers shall be limited to offenses or violations occurring
22    or committed in a casino, in an electronic gaming facility,
23    or on a riverboat or dock, as defined in subsections (d)
24    and (f) of Section 4, or as otherwise provided by this Act,
25    the Chicago Casino Development Authority Act, or any other
26    law.

 

 

HB5146- 346 -LRB100 18631 SMS 33856 b

1        (20.7) To contract with the Department of State Police
2    for the use of trained and qualified State police officers
3    and with the Department of Revenue for the use of trained
4    and qualified Department of Revenue investigators to
5    conduct investigations, searches, seizures, arrests, and
6    other duties imposed under this Act or the Chicago Casino
7    Development Authority Act and to exercise all of the rights
8    and powers of peace officers, provided that the powers of
9    Department of Revenue investigators under this subdivision
10    (20.7) shall be limited to offenses or violations occurring
11    or committed in a casino, in an electronic gaming facility,
12    or on a riverboat or dock, as defined in subsections (d)
13    and (f) of Section 4, or as otherwise provided by this Act
14    or any other law. In the event the Department of State
15    Police or the Department of Revenue is unable to fill
16    contracted police or investigative positions, the Board
17    may appoint investigators to fill those positions pursuant
18    to subdivision (20.6).
19        (21) To adopt rules concerning the conduct of
20    electronic gaming.
21        (22) To have the same jurisdiction and supervision over
22    casinos and electronic gaming facilities as the Board has
23    over riverboats, including, but not limited to, the power
24    to (i) investigate, review, and approve contracts as that
25    power is applied to riverboats, (ii) adopt rules for
26    administering the provisions of this Act or the Chicago

 

 

HB5146- 347 -LRB100 18631 SMS 33856 b

1    Casino Development Authority Act, (iii) adopt standards
2    for the licensing of all persons involved with a casino or
3    electronic gaming facility, (iv) investigate alleged
4    violations of this Act by any person involved with a casino
5    or electronic gaming facility, and (v) require that
6    records, including financial or other statements of any
7    casino or electronic gaming facility, shall be kept in such
8    manner as prescribed by the Board.
9        (23) To supervise and regulate the Chicago Casino
10    Development Authority in accordance with the Chicago
11    Casino Development Authority Act and the provisions of this
12    Act.
13        (24) (21) To take any other action as may be reasonable
14    or appropriate to enforce this Act, the Chicago Casino
15    Development Authority Act, and the rules adopted by the
16    Board under both Acts and regulations hereunder.
17    All Board powers enumerated in this Section in relation to
18licensees shall apply equally to the holder of any casino
19management contract entered into pursuant to the Chicago Casino
20Development Authority Act.
21    (d) The Board may seek and shall receive the cooperation of
22the Department of State Police in conducting background
23investigations of applicants and in fulfilling its
24responsibilities under this Section. Costs incurred by the
25Department of State Police as a result of such cooperation
26shall be paid by the Board in conformance with the requirements

 

 

HB5146- 348 -LRB100 18631 SMS 33856 b

1of Section 2605-400 of the Department of State Police Law (20
2ILCS 2605/2605-400).
3    (e) The Board must authorize to each investigator and to
4any other employee of the Board exercising the powers of a
5peace officer a distinct badge that, on its face, (i) clearly
6states that the badge is authorized by the Board and (ii)
7contains a unique identifying number. No other badge shall be
8authorized by the Board.
9(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
 
10    (230 ILCS 10/5.1)  (from Ch. 120, par. 2405.1)
11    Sec. 5.1. Disclosure of records.
12    (a) Notwithstanding any applicable statutory provision to
13the contrary, the Board shall, on written request from any
14person, provide information furnished by an applicant or
15licensee concerning the applicant or licensee, his products,
16services or gambling enterprises and his business holdings, as
17follows:
18        (1) The name, business address and business telephone
19    number of any applicant or licensee.
20        (2) An identification of any applicant or licensee
21    including, if an applicant or licensee is not an
22    individual, the names and addresses of all stockholders and
23    directors, if the entity is a corporation; the names and
24    addresses of all members, if the entity is a limited
25    liability company; the names and addresses of all partners,

 

 

HB5146- 349 -LRB100 18631 SMS 33856 b

1    both general and limited, if the entity is a partnership;
2    and the names and addresses of all beneficiaries, if the
3    entity is a trust the state of incorporation or
4    registration, the corporate officers, and the identity of
5    all shareholders or participants. If an applicant or
6    licensee has a pending registration statement filed with
7    the Securities and Exchange Commission, only the names of
8    those persons or entities holding interest of 5% or more
9    must be provided.
10        (3) An identification of any business, including, if
11    applicable, the state of incorporation or registration, in
12    which an applicant or licensee or an applicant's or
13    licensee's spouse or children has an equity interest of
14    more than 1%. If an applicant or licensee is a corporation,
15    partnership or other business entity, the applicant or
16    licensee shall identify any other corporation, partnership
17    or business entity in which it has an equity interest of 1%
18    or more, including, if applicable, the state of
19    incorporation or registration. This information need not
20    be provided by a corporation, partnership or other business
21    entity that has a pending registration statement filed with
22    the Securities and Exchange Commission.
23        (4) Whether an applicant or licensee has been indicted,
24    convicted, pleaded guilty or nolo contendere, or forfeited
25    bail concerning any criminal offense under the laws of any
26    jurisdiction, either felony or misdemeanor (except for

 

 

HB5146- 350 -LRB100 18631 SMS 33856 b

1    traffic violations), including the date, the name and
2    location of the court, arresting agency and prosecuting
3    agency, the case number, the offense, the disposition and
4    the location and length of incarceration.
5        (5) Whether an applicant or licensee has had any
6    license or certificate issued by a licensing authority in
7    Illinois or any other jurisdiction denied, restricted,
8    suspended, revoked or not renewed and a statement
9    describing the facts and circumstances concerning the
10    denial, restriction, suspension, revocation or
11    non-renewal, including the licensing authority, the date
12    each such action was taken, and the reason for each such
13    action.
14        (6) Whether an applicant or licensee has ever filed or
15    had filed against it a proceeding in bankruptcy or has ever
16    been involved in any formal process to adjust, defer,
17    suspend or otherwise work out the payment of any debt
18    including the date of filing, the name and location of the
19    court, the case and number of the disposition.
20        (7) Whether an applicant or licensee has filed, or been
21    served with a complaint or other notice filed with any
22    public body, regarding the delinquency in the payment of,
23    or a dispute over the filings concerning the payment of,
24    any tax required under federal, State or local law,
25    including the amount, type of tax, the taxing agency and
26    time periods involved.

 

 

HB5146- 351 -LRB100 18631 SMS 33856 b

1        (8) A statement listing the names and titles of all
2    public officials or officers of any unit of government, and
3    relatives of said public officials or officers who,
4    directly or indirectly, own any financial interest in, have
5    any beneficial interest in, are the creditors of or hold
6    any debt instrument issued by, or hold or have any interest
7    in any contractual or service relationship with, an
8    applicant or licensee.
9        (9) Whether an applicant or licensee has made, directly
10    or indirectly, any political contribution, or any loans,
11    donations or other payments, to any candidate or office
12    holder, within 5 years from the date of filing the
13    application, including the amount and the method of
14    payment.
15        (10) The name and business telephone number of the
16    counsel representing an applicant or licensee in matters
17    before the Board.
18        (11) A description of any proposed or approved
19    riverboat or casino gaming or electronic gaming operation,
20    including the type of boat, home dock or casino or
21    electronic gaming location, expected economic benefit to
22    the community, anticipated or actual number of employees,
23    any statement from an applicant or licensee regarding
24    compliance with federal and State affirmative action
25    guidelines, projected or actual admissions and projected
26    or actual adjusted gross gaming receipts.

 

 

HB5146- 352 -LRB100 18631 SMS 33856 b

1        (12) A description of the product or service to be
2    supplied by an applicant for a supplier's license.
3    (b) Notwithstanding any applicable statutory provision to
4the contrary, the Board shall, on written request from any
5person, also provide the following information:
6        (1) The amount of the wagering tax and admission tax
7    paid daily to the State of Illinois by the holder of an
8    owner's license.
9        (2) Whenever the Board finds an applicant for an
10    owner's license unsuitable for licensing, a copy of the
11    written letter outlining the reasons for the denial.
12        (3) Whenever the Board has refused to grant leave for
13    an applicant to withdraw his application, a copy of the
14    letter outlining the reasons for the refusal.
15    (c) Subject to the above provisions, the Board shall not
16disclose any information which would be barred by:
17        (1) Section 7 of the Freedom of Information Act; or
18        (2) The statutes, rules, regulations or
19    intergovernmental agreements of any jurisdiction.
20    (d) The Board may assess fees for the copying of
21information in accordance with Section 6 of the Freedom of
22Information Act.
23(Source: P.A. 96-1392, eff. 1-1-11.)
 
24    (230 ILCS 10/5.3 new)
25    Sec. 5.3. Ethical conduct.

 

 

HB5146- 353 -LRB100 18631 SMS 33856 b

1    (a) Officials and employees of the corporate authority of a
2host community must carry out their duties and responsibilities
3in such a manner as to promote and preserve public trust and
4confidence in the integrity and conduct of gaming.
5    (b) Officials and employees of the corporate authority of a
6host community shall not use or attempt to use his or her
7official position to secure or attempt to secure any privilege,
8advantage, favor, or influence for himself or herself or
9others.
10    (c) Officials and employees of the corporate authority of a
11host community may not have a financial interest, directly or
12indirectly, in his or her own name or in the name of any other
13person, partnership, association, trust, corporation, or other
14entity in any contract or subcontract for the performance of
15any work for a riverboat or casino that is located in the host
16community. This prohibition shall extend to the holding or
17acquisition of an interest in any entity identified by Board
18action that, in the Board's judgment, could represent the
19potential for or the appearance of a financial interest. The
20holding or acquisition of an interest in such entities through
21an indirect means, such as through a mutual fund, shall not be
22prohibited, except that the Board may identify specific
23investments or funds that, in its judgment, are so influenced
24by gaming holdings as to represent the potential for or the
25appearance of a conflict of interest.
26    (d) Officials and employees of the corporate authority of a

 

 

HB5146- 354 -LRB100 18631 SMS 33856 b

1host community may not accept any gift, gratuity, service,
2compensation, travel, lodging, or thing of value, with the
3exception of unsolicited items of an incidental nature, from
4any person, corporation, or entity doing business with the
5riverboat or casino that is located in the host community.
6    (e) Officials and employees of the corporate authority of a
7host community shall not, during the period that the person is
8an official or employee of the corporate authority or for a
9period of 2 years immediately after leaving such office,
10knowingly accept employment or receive compensation or fees for
11services from a person or entity, or its parent or affiliate,
12that has engaged in business with the riverboat or casino that
13is located in the host community that resulted in contracts
14with an aggregate value of at least $25,000 or if that official
15or employee has made a decision that directly applied to the
16person or entity, or its parent or affiliate.
17    (f) A spouse, child, or parent of an official or employee
18of the corporate authority of a host community may not have a
19financial interest, directly or indirectly, in his or her own
20name or in the name of any other person, partnership,
21association, trust, corporation, or other entity in any
22contract or subcontract for the performance of any work for a
23riverboat or casino in the host community. This prohibition
24shall extend to the holding or acquisition of an interest in
25any entity identified by Board action that, in the judgment of
26the Board, could represent the potential for or the appearance

 

 

HB5146- 355 -LRB100 18631 SMS 33856 b

1of a conflict of interest. The holding or acquisition of an
2interest in such entities through an indirect means, such as
3through a mutual fund, shall not be prohibited, expect that the
4Board may identify specific investments or funds that, in its
5judgment, are so influenced by gaming holdings as to represent
6the potential for or the appearance of a conflict of interest.
7    (g) A spouse, child, or parent of an official or employee
8of the corporate authority of a host community may not accept
9any gift, gratuity, service, compensation, travel, lodging, or
10thing of value, with the exception of unsolicited items of an
11incidental nature, from any person, corporation, or entity
12doing business with the riverboat or casino that is located in
13the host community.
14    (h) A spouse, child, or parent of an official or employee
15of the corporate authority of a host community may not, during
16the period that the person is an official of the corporate
17authority or for a period of 2 years immediately after leaving
18such office or employment, knowingly accept employment or
19receive compensation or fees for services from a person or
20entity, or its parent or affiliate, that has engaged in
21business with the riverboat or casino that is located in the
22host community that resulted in contracts with an aggregate
23value of at least $25,000 or if that official or employee has
24made a decision that directly applied to the person or entity,
25or its parent or affiliate.
26    (i) Officials and employees of the corporate authority of a

 

 

HB5146- 356 -LRB100 18631 SMS 33856 b

1host community shall not attempt, in any way, to influence any
2person or entity doing business with the riverboat or casino
3that is located in the host community or any officer, agent, or
4employee thereof to hire or contract with any person or entity
5for any compensated work.
6    (j) Any communication between an official of the corporate
7authority of a host community and any applicant for an owners
8license in the host community, or an officer, director, or
9employee of a riverboat or casino in the host community,
10concerning any matter relating in any way to gaming shall be
11disclosed to the Board. Such disclosure shall be in writing by
12the official within 30 days after the communication and shall
13be filed with the Board. Disclosure must consist of the date of
14the communication, the identity and job title of the person
15with whom the communication was made, a brief summary of the
16communication, the action requested or recommended, all
17responses made, the identity and job title of the person making
18the response, and any other pertinent information. Public
19disclosure of the written summary provided to the Board and the
20Gaming Board shall be subject to the exemptions provided under
21the Freedom of Information Act.
22    This subsection (j) shall not apply to communications
23regarding traffic, law enforcement, security, environmental
24issues, city services, transportation, or other routine
25matters concerning the ordinary operations of the riverboat or
26casino. For purposes of this subsection (j), "ordinary

 

 

HB5146- 357 -LRB100 18631 SMS 33856 b

1operations" means operations relating to the casino or
2riverboat facility other than the conduct of gambling
3activities, and "routine matters" includes the application
4for, issuance of, renewal of, and other processes associated
5with municipal permits and licenses.
6    (k) Any official or employee who violates any provision of
7this Section is guilty of a Class 4 felony.
8    (l) For purposes of this Section, "host community" or "host
9municipality" means a unit of local government that contains a
10riverboat or casino within its borders, but does not include
11the City of Chicago or the Chicago Casino Development
12Authority.
 
13    (230 ILCS 10/6)  (from Ch. 120, par. 2406)
14    Sec. 6. Application for Owners License.
15    (a) A qualified person may apply to the Board for an owners
16license to conduct a riverboat gambling operation as provided
17in this Act. The application shall be made on forms provided by
18the Board and shall contain such information as the Board
19prescribes, including but not limited to the identity of the
20riverboat on which such gambling operation is to be conducted,
21if applicable, and the exact location where such riverboat or
22casino will be located docked, a certification that the
23riverboat will be registered under this Act at all times during
24which gambling operations are conducted on board, detailed
25information regarding the ownership and management of the

 

 

HB5146- 358 -LRB100 18631 SMS 33856 b

1applicant, and detailed personal information regarding the
2applicant. Any application for an owners license to be
3re-issued on or after June 1, 2003 shall also include the
4applicant's license bid in a form prescribed by the Board.
5Information provided on the application shall be used as a
6basis for a thorough background investigation which the Board
7shall conduct with respect to each applicant. An incomplete
8application shall be cause for denial of a license by the
9Board.
10    (a-5) In addition to any other information required under
11this Section, each application for an owners license must
12include the following information:
13        (1) The history and success of the applicant and each
14    person and entity disclosed under subsection (c) of this
15    Section in developing tourism facilities ancillary to
16    gaming, if applicable.
17        (2) The likelihood that granting a license to the
18    applicant will lead to the creation of quality, living wage
19    jobs and permanent, full-time jobs for residents of the
20    State and residents of the unit of local government that is
21    designated as the home dock of the proposed facility where
22    gambling is to be conducted by the applicant.
23        (3) The projected number of jobs that would be created
24    if the license is granted and the projected number of new
25    employees at the proposed facility where gambling is to be
26    conducted by the applicant.

 

 

HB5146- 359 -LRB100 18631 SMS 33856 b

1        (4) The record, if any, of the applicant and its
2    developer in meeting commitments to local agencies,
3    community-based organizations, and employees at other
4    locations where the applicant or its developer has
5    performed similar functions as they would perform if the
6    applicant were granted a license.
7        (5) Identification of adverse effects that might be
8    caused by the proposed facility where gambling is to be
9    conducted by the applicant, including the costs of meeting
10    increased demand for public health care, child care, public
11    transportation, affordable housing, and social services,
12    and a plan to mitigate those adverse effects.
13        (6) The record, if any, of the applicant and its
14    developer regarding compliance with:
15            (A) federal, state, and local discrimination, wage
16        and hour, disability, and occupational and
17        environmental health and safety laws; and
18            (B) state and local labor relations and employment
19        laws.
20        (7) The applicant's record, if any, in dealing with its
21    employees and their representatives at other locations.
22        (8) A plan concerning the utilization of
23    minority-owned and female-owned businesses and concerning
24    the hiring of minorities and females.
25        (9) Evidence the applicant used its best efforts to
26    reach a goal of 25% ownership representation by minority

 

 

HB5146- 360 -LRB100 18631 SMS 33856 b

1    persons and 5% ownership representation by females.
2    (b) Applicants shall submit with their application all
3documents, resolutions, and letters of support from the
4governing body that represents the municipality or county
5wherein the licensee will be located dock.
6    (c) Each applicant shall disclose the identity of every
7person or entity , association, trust or corporation having a
8greater than 1% direct or indirect pecuniary interest in the
9riverboat gambling operation with respect to which the license
10is sought. If the disclosed entity is a trust, the application
11shall disclose the names and addresses of all the
12beneficiaries; if a corporation, the names and addresses of all
13stockholders and directors; if a partnership, the names and
14addresses of all partners, both general and limited.
15    (d) An application shall be filed and considered in
16accordance with the rules of the Board. Each application shall
17be accompanied by a non-refundable An application fee of
18$100,000. In addition, a non-refundable fee of $50,000 shall be
19paid at the time of filing to defray the costs associated with
20the background investigation conducted by the Board. If the
21costs of the investigation exceed $50,000, the applicant shall
22pay the additional amount to the Board within 7 days after
23requested by the Board. If the costs of the investigation are
24less than $50,000, the applicant shall receive a refund of the
25remaining amount. All information, records, interviews,
26reports, statements, memoranda or other data supplied to or

 

 

HB5146- 361 -LRB100 18631 SMS 33856 b

1used by the Board in the course of its review or investigation
2of an application for a license or a renewal under this Act
3shall be privileged, strictly confidential and shall be used
4only for the purpose of evaluating an applicant for a license
5or a renewal. Such information, records, interviews, reports,
6statements, memoranda or other data shall not be admissible as
7evidence, nor discoverable in any action of any kind in any
8court or before any tribunal, board, agency or person, except
9for any action deemed necessary by the Board. The application
10fee shall be deposited into the Gaming Facilities Fee Revenue
11Fund.
12    (e) The Board shall charge each applicant a fee set by the
13Department of State Police to defray the costs associated with
14the search and classification of fingerprints obtained by the
15Board with respect to the applicant's application. These fees
16shall be paid into the State Police Services Fund. In order to
17expedite the application process, the Board may establish rules
18allowing applicants to acquire criminal background checks and
19financial integrity reviews as part of the initial application
20process from a list of vendors approved by the Board.
21    (f) The licensed owner shall be the person primarily
22responsible for the boat or casino itself. Only one riverboat
23gambling operation may be authorized by the Board on any
24riverboat or in any casino. The applicant must identify the
25each riverboat or premises it intends to use and certify that
26the riverboat or premises: (1) has the authorized capacity

 

 

HB5146- 362 -LRB100 18631 SMS 33856 b

1required in this Act; (2) is accessible to persons with
2disabilities; and (3) is fully registered and licensed in
3accordance with any applicable laws.
4    (g) A person who knowingly makes a false statement on an
5application is guilty of a Class A misdemeanor.
6(Source: P.A. 99-143, eff. 7-27-15.)
 
7    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
8    Sec. 7. Owners licenses.
9    (a) The Board shall issue owners licenses to persons or
10entities , firms or corporations which apply for such licenses
11upon payment to the Board of the non-refundable license fee as
12provided in subsection (e) or (e-5) set by the Board, upon
13payment of a $25,000 license fee for the first year of
14operation and a $5,000 license fee for each succeeding year and
15upon a determination by the Board that the applicant is
16eligible for an owners license pursuant to this Act, the
17Chicago Casino Development Authority Act, and the rules of the
18Board. From the effective date of this amendatory Act of the
1995th General Assembly until (i) 3 years after the effective
20date of this amendatory Act of the 95th General Assembly, (ii)
21the date any organization licensee begins to operate a slot
22machine or video game of chance under the Illinois Horse Racing
23Act of 1975 or this Act, (iii) the date that payments begin
24under subsection (c-5) of Section 13 of the Act, or (iv) the
25wagering tax imposed under Section 13 of this Act is increased

 

 

HB5146- 363 -LRB100 18631 SMS 33856 b

1by law to reflect a tax rate that is at least as stringent or
2more stringent than the tax rate contained in subsection (a-3)
3of Section 13, or (v) when an owners licensee holding a license
4issued pursuant to Section 7.1 of this Act begins conducting
5gaming, whichever occurs first, as a condition of licensure and
6as an alternative source of payment for those funds payable
7under subsection (c-5) of Section 13 of this the Riverboat
8Gambling Act, any owners licensee that holds or receives its
9owners license on or after the effective date of this
10amendatory Act of the 94th General Assembly, other than an
11owners licensee operating a riverboat with adjusted gross
12receipts in calendar year 2004 of less than $200,000,000, must
13pay into the Horse Racing Equity Trust Fund, in addition to any
14other payments required under this Act, an amount equal to 3%
15of the adjusted gross receipts received by the owners licensee.
16The payments required under this Section shall be made by the
17owners licensee to the State Treasurer no later than 3:00
18o'clock p.m. of the day after the day when the adjusted gross
19receipts were received by the owners licensee. A person, firm
20or entity corporation is ineligible to receive an owners
21license if:
22        (1) the person has been convicted of a felony under the
23    laws of this State, any other state, or the United States;
24        (2) the person has been convicted of any violation of
25    Article 28 of the Criminal Code of 1961 or the Criminal
26    Code of 2012, or substantially similar laws of any other

 

 

HB5146- 364 -LRB100 18631 SMS 33856 b

1    jurisdiction;
2        (3) the person has submitted an application for a
3    license under this Act or the Chicago Casino Development
4    Authority Act which contains false information;
5        (4) the person is a member of the Board;
6        (5) a person defined in (1), (2), (3) or (4) is an
7    officer, director or managerial employee of the entity firm
8    or corporation;
9        (6) the entity firm or corporation employs a person
10    defined in (1), (2), (3) or (4) who participates in the
11    management or operation of gambling operations authorized
12    under this Act or the Chicago Casino Development Authority
13    Act;
14        (7) (blank); or
15        (8) a license of the person or entity , firm or
16    corporation issued under this Act or the Chicago Casino
17    Development Authority Act, or a license to own or operate
18    gambling facilities in any other jurisdiction, has been
19    revoked.
20    The Board is expressly prohibited from making changes to
21the requirement that licensees make payment into the Horse
22Racing Equity Trust Fund without the express authority of the
23Illinois General Assembly and making any other rule to
24implement or interpret this amendatory Act of the 95th General
25Assembly. For the purposes of this paragraph, "rules" is given
26the meaning given to that term in Section 1-70 of the Illinois

 

 

HB5146- 365 -LRB100 18631 SMS 33856 b

1Administrative Procedure Act.
2    (a-1) Upon approval of the members of the Chicago Casino
3Development Board, the Chicago Casino Development Authority's
4executive director, and the Chicago casino operator licensee,
5the Board shall issue an owners license to the Chicago Casino
6Development Authority that authorizes the conduct of gambling
7operations in a casino or in an airport located in the City of
8Chicago.
9    (b) In determining whether to grant an owners license to an
10applicant other than the Chicago Casino Development Authority,
11the Board shall consider:
12        (1) the character, reputation, experience and
13    financial integrity of the applicants and of any other or
14    separate person that either:
15            (A) controls, directly or indirectly, such
16        applicant, or
17            (B) is controlled, directly or indirectly, by such
18        applicant or by a person which controls, directly or
19        indirectly, such applicant;
20        (2) the facilities or proposed facilities for the
21    conduct of riverboat gambling;
22        (3) the highest prospective total revenue to be derived
23    by the State from the conduct of riverboat gambling;
24        (4) the extent to which the ownership of the applicant
25    reflects the diversity of the State by including minority
26    persons, women, and persons with a disability and the good

 

 

HB5146- 366 -LRB100 18631 SMS 33856 b

1    faith affirmative action plan of each applicant to recruit,
2    train and upgrade minority persons, women, and persons with
3    a disability in all employment classifications;
4        (5) the financial ability of the applicant to purchase
5    and maintain adequate liability and casualty insurance;
6        (6) whether the applicant has adequate capitalization
7    to provide and maintain, for the duration of a license, a
8    riverboat or casino;
9        (7) the extent to which the applicant exceeds or meets
10    other standards for the issuance of an owners license which
11    the Board may adopt by rule; and
12        (8) the The amount of the applicant's license bid; .
13        (9) the extent to which the applicant or the proposed
14    host municipality plans to enter into revenue sharing
15    agreements with communities other than the host
16    municipality; and
17        (10) the extent to which the ownership of an applicant
18    includes the most qualified number of minority persons,
19    females, and persons with a disability.
20    (c) Each owners license shall specify the place where the
21casino riverboats shall operate or the riverboat shall operate
22and dock.
23    (d) Each applicant shall submit with his application, on
24forms provided by the Board, 2 sets of his fingerprints.
25    (e) In addition to any licenses authorized under subsection
26(e-5) of this Section, the The Board may issue up to 10

 

 

HB5146- 367 -LRB100 18631 SMS 33856 b

1licenses authorizing the holders of such licenses to own
2riverboats. In the application for an owners license, the
3applicant shall state the dock at which the riverboat is based
4and the water on which the riverboat will be located. The Board
5shall issue 5 licenses to become effective not earlier than
6January 1, 1991. Three of such licenses shall authorize
7riverboat gambling on the Mississippi River, or, with approval
8by the municipality in which the riverboat was docked on August
97, 2003 and with Board approval, be authorized to relocate to a
10new location, in a municipality that (1) borders on the
11Mississippi River or is within 5 miles of the city limits of a
12municipality that borders on the Mississippi River and (2), on
13August 7, 2003, had a riverboat conducting riverboat gambling
14operations pursuant to a license issued under this Act; one of
15which shall authorize riverboat gambling from a home dock in
16the city of East St. Louis. One other license shall authorize
17riverboat gambling on the Illinois River in Tazewell County or,
18with Board approval, shall authorize the riverboat to relocate
19to a new location that is no more than 10 miles away from its
20original location, in a municipality that borders on the
21Illinois River or is within 5 miles of the city limits of a
22municipality that borders on the Illinois River south of
23Marshall County. The Board shall issue one additional license
24to become effective not earlier than March 1, 1992, which shall
25authorize riverboat gambling on the Des Plaines River in Will
26County. The Board may issue 4 additional licenses to become

 

 

HB5146- 368 -LRB100 18631 SMS 33856 b

1effective not earlier than March 1, 1992. In determining the
2water upon which riverboats will operate, the Board shall
3consider the economic benefit which riverboat gambling confers
4on the State, and shall seek to assure that all regions of the
5State share in the economic benefits of riverboat gambling.
6    In granting all licenses, the Board may give favorable
7consideration to economically depressed areas of the State, to
8applicants presenting plans which provide for significant
9economic development over a large geographic area, and to
10applicants who currently operate non-gambling riverboats in
11Illinois. The Board shall review all applications for owners
12licenses, and shall inform each applicant of the Board's
13decision. The Board may grant an owners license to an applicant
14that has not submitted the highest license bid, but if it does
15not select the highest bidder, the Board shall issue a written
16decision explaining why another applicant was selected and
17identifying the factors set forth in this Section that favored
18the winning bidder. The fee for issuance or renewal of a
19license pursuant to this subsection (e) shall be $100,000.
20    (e-5) In addition to licenses authorized under subsection
21(e) of this Section:
22        (1) the Board shall issue one owners license
23    authorizing the conduct of casino gambling in the City of
24    Chicago;
25        (2) the Board may issue one owners license authorizing
26    the conduct of riverboat gambling in the City of Danville;

 

 

HB5146- 369 -LRB100 18631 SMS 33856 b

1        (3) the Board may issue one owners license authorizing
2    the conduct of riverboat gambling located in one of the
3    following municipalities in Lake County: Park City, North
4    Chicago, or Waukegan;
5        (4) the Board may issue one owners license authorizing
6    the conduct of riverboat gambling in the City of Rockford;
7        (5) the Board may issue one owners license authorizing
8    the conduct of riverboat gambling in a municipality that is
9    wholly or partially located in one of the following
10    townships of Cook County: Bloom, Bremen, Calumet, Rich,
11    Thornton, or Worth Township; and
12        (6) the Board may issue one owners license authorizing
13    the conduct of riverboat gambling in the unincorporated
14    area of Williamson County adjacent to the Big Muddy River.
15    Each application for a license pursuant to this subsection
16(e-5) shall be submitted to the Board no later than 120 days
17after the effective date of this amendatory Act of the 100th
18General Assembly and shall include the non-refundable
19application fee and the non-refundable background
20investigation fee as provided in subsection (d) of Section 6 of
21this Act. In the event that an applicant submits an application
22for a license pursuant to this subsection (e-5) prior to the
23effective date of this amendatory Act of the 100th General
24Assembly, such applicant shall submit the non-refundable
25application fee and background investigation fee as provided in
26subsection (d) of Section 6 of this Act no later than 6 months

 

 

HB5146- 370 -LRB100 18631 SMS 33856 b

1after the effective date of this amendatory Act of the 100th
2General Assembly.
3    The Board shall consider issuing a license pursuant to
4paragraphs (2) through (6) of this subsection only after the
5corporate authority of the municipality or the county board of
6the county in which the riverboat shall be located has
7certified to the Board the following:
8        (i) that the applicant has negotiated with the
9    corporate authority or county board in good faith;
10        (ii) that the applicant and the corporate authority or
11    county board have mutually agreed on the permanent location
12    of the riverboat;
13        (iii) that the applicant and the corporate authority or
14    county board have mutually agreed on the temporary location
15    of the riverboat;
16        (iv) that the applicant and the corporate authority or
17    the county board have mutually agreed on the percentage of
18    revenues that will be shared with the municipality or
19    county, if any; and
20        (v) that the applicant and the corporate authority or
21    county board have mutually agreed on any zoning, licensing,
22    public health, or other issues that are within the
23    jurisdiction of the municipality or county.
24    At least 7 days before the corporate authority of a
25municipality or county board of the county submits a
26certification to the Board concerning items (i) through (v) of

 

 

HB5146- 371 -LRB100 18631 SMS 33856 b

1this subsection, it shall hold a public hearing to discuss
2items (i) through (v), as well as any other details concerning
3the proposed riverboat in the municipality or county. The
4corporate authority or county board must subsequently
5memorialize the details concerning the proposed riverboat in a
6resolution that must be adopted by a majority of the corporate
7authority or county board before any certification is sent to
8the Board. The Board shall not alter, amend, change, or
9otherwise interfere with any agreement between the applicant
10and the corporate authority of the municipality or county board
11of the county regarding the location of any temporary or
12permanent facility.
13    In addition, prior to the Board issuing the owners license
14authorized under paragraph (4) of subsection (e-5), an impact
15study shall be completed to determine what location in the city
16will provide the greater impact to the region, including the
17creation of jobs and the generation of tax revenue.
18    (e-10) The licenses authorized under subsection (e-5) of
19this Section shall be issued within 12 months after the date
20the license application is submitted. If the Board does not
21issue the licenses within that time period, then the Board
22shall give a written explanation to the applicant as to why it
23has not reached a determination and when it reasonably expects
24to make a determination. The fee for the issuance or renewal of
25a license issued pursuant to this subsection (e-10) shall be
26$100,000. Additionally, a licensee located outside of Cook

 

 

HB5146- 372 -LRB100 18631 SMS 33856 b

1County shall pay a minimum initial fee of $17,500 per gaming
2position, and a licensee located in Cook County shall pay a
3minimum initial fee of $30,000 per gaming position. The initial
4fees payable under this subsection (e-10) shall be deposited
5into the Gaming Facilities Fee Revenue Fund.
6    (e-15) Each licensee of a license authorized under
7subsection (e-5) of this Section shall make a reconciliation
8payment 3 years after the date the licensee begins operating in
9an amount equal to 75% of the adjusted gross receipts for the
10most lucrative 12-month period of operations, minus an amount
11equal to the initial payment per gaming position paid by the
12specific licensee. If this calculation results in a negative
13amount, then the licensee is not entitled to any reimbursement
14of fees previously paid. This reconciliation payment may be
15made in installments over a period of no more than 2 years,
16subject to Board approval. Any installment payments shall
17include an annual market interest rate as determined by the
18Board. All payments by licensees under this subsection (e-15)
19shall be deposited into the Gaming Facilities Fee Revenue Fund.
20    (e-20) In addition to any other revocation powers granted
21to the Board under this Act, the Board may revoke the owners
22license of a licensee, other than the Chicago Casino
23Development Authority, which fails to begin conducting
24gambling within 15 months of receipt of the Board's approval of
25the application if the Board determines that license revocation
26is in the best interests of the State.

 

 

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1    (f) The first 10 owners licenses issued under this Act
2shall permit the holder to own up to 2 riverboats and equipment
3thereon for a period of 3 years after the effective date of the
4license. Holders of the first 10 owners licenses must pay the
5annual license fee for each of the 3 years during which they
6are authorized to own riverboats.
7    (g) Upon the termination, expiration, or revocation of each
8of the first 10 licenses, which shall be issued for a 3 year
9period, all licenses are renewable annually upon payment of the
10fee and a determination by the Board that the licensee
11continues to meet all of the requirements of this Act and the
12Board's rules. However, for licenses renewed on or after May 1,
131998, including casino operator licenses, renewal shall be for
14a period of 4 years, unless the Board sets a shorter period.
15Notwithstanding any provision in this subsection (g) to the
16contrary, any license that is awarded to the Chicago Casino
17Development Authority shall not expire, but it shall be subject
18to the provisions of this Act and the rules of the Board.
19    (h) An owners license, except for an owners license issued
20under subsection (e-5) of this Section, shall entitle the
21licensee to own up to 2 riverboats.
22    An owners licensee of a casino or riverboat that is located
23in the City of Chicago pursuant to paragraph (1) of subsection
24(e-5) of this Section shall limit the number of gaming
25positions to 4,000 for such owner. An owners licensee
26authorized under subsection (e) or paragraph (2), (3), (4), or

 

 

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1(5) of subsection (e-5) of this Section shall limit the number
2of gaming positions to 1,600 for any such owners license,
3except as further provided in subsection (h-10) of this
4Section. An owners licensee authorized under paragraph (6) of
5subsection (e-5) of this Section A licensee shall limit the
6number of gaming positions gambling participants to 1,200 for
7any such owner. The initial fee for each gaming position
8obtained on or after the effective date of this amendatory Act
9of the 100th General Assembly shall be a minimum of $17,500 for
10licensees not located in Cook County and a minimum of $30,000
11for licensees located in Cook County, in addition to the
12reconciliation payment, as set forth in subsections (e-15) or
13(h-5) of this Section owners license. The fees under this
14subsection (h) shall be deposited into the Gaming Facilities
15Fee Revenue Fund.
16    Each owners licensee shall reserve its gaming positions
17within 90 days after issuance of its owners license. The Board
18may grant an extension to this 90-day period, provided that the
19owners licensee submits a written request and explanation as to
20why it is unable to reserve its positions within the 90-day
21period.
22    A licensee may operate both of its riverboats concurrently,
23provided that the total number of gaming positions gambling
24participants on both riverboats does not exceed the limit
25established pursuant to this subsection and subsection (h-10)
26of this Section 1,200. Riverboats licensed to operate on the

 

 

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1Mississippi River and the Illinois River south of Marshall
2County shall have an authorized capacity of at least 500
3persons. Any other riverboat licensed under this Act shall have
4an authorized capacity of at least 400 persons.
5    (h-5) An owners licensee who conducted gambling operations
6prior to January 1, 2012 and purchases positions pursuant to
7subsection (h-10) of this Section on or after the effective
8date of this amendatory Act of the 100th General Assembly must
9pay a minimum initial fee of $17,500 per additional gaming
10position if the licensee is located outside Cook County and a
11minimum initial fee of $30,000 per additional gaming position
12if the licensee is located in Cook County, as stated in
13subsection (h) of this Section. These initial fees shall be
14deposited into the Gaming Facilities Fee Revenue Fund.
15Additionally, that owners licensee shall make a reconciliation
16payment 3 years after any additional gaming positions obtained
17pursuant to subsection (h-10) begin operating in an amount
18equal to 75% of the owners licensee's average gross receipts
19for the most lucrative 12-month period of operations minus an
20amount equal to the initial fee that the owners licensee paid
21per additional gaming position. For purposes of this subsection
22(h-5), "average gross receipts" means (i) the increase in
23adjusted gross receipts for the most lucrative 12-month period
24of operations over the adjusted gross receipts for 2017,
25multiplied by (ii) the percentage derived by dividing the
26number of additional gaming positions that an owners licensee

 

 

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1had obtained pursuant to subsection (h-10) by the total number
2of gaming positions operated by the owners licensee. If this
3calculation results in a negative amount, then the owners
4licensee is not entitled to any reimbursement of fees
5previously paid. This reconciliation payment may be made in
6installments over a period of no more than 2 years, subject to
7Board approval. Any installment payments shall include an
8annual market interest rate as determined by the Board. These
9reconciliation payments shall be deposited into the Gaming
10Facilities Fee Revenue Fund.
11    (h-10) For owners licensees authorized under paragraphs
12(2) through (5) of subsection (e-5) of this Section, the
13application for such new owners licenses shall ask the
14applicants to stipulate in their applications the number of
15gaming positions each applicant would like to reserve, up to
161,600 gaming positions. Once the last winning applicant for
17each of these owners licenses has been selected by the Board,
18the Board shall publish the number of gaming positions reserved
19and unreserved by each winning applicant, shall accept requests
20for additional gaming positions from any winning applicants or
21owners licensee who initially reserved 1,600 gaming positions,
22and shall allocate expeditiously the unreserved gaming
23positions to such requesting winning applicants or owners
24licensees in a manner to maximize revenue to the State;
25provided, however, that no owners licensee (other than the
26Chicago Casino Development Authority) shall obtain more than

 

 

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12,000 positions total.
2    In the event that not all of the unreserved gaming
3positions described in the first and second paragraphs of this
4subsection (h-10) were requested by owners licensees and
5applicants, then until there are no longer unreserved gaming
6positions, the Board periodically shall govern a process to
7allocate the unreserved gaming positions in a manner to
8maximize revenue to the State.
9    Unreserved gaming positions retained from and allocated to
10owners licensees by the Board pursuant to this subsection
11(h-10) shall not be allocated to electronic gaming licensees
12pursuant to subsection (e) of Section 7.7 of this Act.
13    (i) A licensed owner is authorized to apply to the Board
14for and, if approved therefor, to receive all licenses from the
15Board necessary for the operation of a riverboat or casino,
16including a liquor license, a license to prepare and serve food
17for human consumption, and other necessary licenses. All use,
18occupation and excise taxes which apply to the sale of food and
19beverages in this State and all taxes imposed on the sale or
20use of tangible personal property apply to such sales aboard
21the riverboat or in the casino.
22    (j) The Board may issue or re-issue a license authorizing a
23riverboat to dock in a municipality or approve a relocation
24under Section 11.2 only if, prior to the issuance or
25re-issuance of the license or approval, the governing body of
26the municipality in which the riverboat will dock has by a

 

 

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1majority vote approved the docking of riverboats in the
2municipality. The Board may issue or re-issue a license
3authorizing a riverboat to dock in areas of a county outside
4any municipality or approve a relocation under Section 11.2
5only if, prior to the issuance or re-issuance of the license or
6approval, the governing body of the county has by a majority
7vote approved of the docking of riverboats within such areas.
8    (k) An owners licensee may conduct land-based gambling
9operations upon approval by the Board.
10    (l) An owners licensee may conduct gaming at a temporary
11facility pending the construction of a permanent facility or
12the remodeling or relocation of an existing facility to
13accommodate gaming participants for up to 24 months after the
14temporary facility begins to conduct gaming. Upon request by an
15owners licensee and upon a showing of good cause by the owners
16licensee, the Board shall extend the period during which the
17licensee may conduct gaming at a temporary facility by up to 12
18months. The Board shall make rules concerning the conduct of
19gaming from temporary facilities.
20(Source: P.A. 100-391, eff. 8-25-17.)
 
21    (230 ILCS 10/7.3)
22    Sec. 7.3. State conduct of gambling operations.
23    (a) If, after reviewing each application for a re-issued
24license, the Board determines that the highest prospective
25total revenue to the State would be derived from State conduct

 

 

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1of the gambling operation in lieu of re-issuing the license,
2the Board shall inform each applicant of its decision. The
3Board shall thereafter have the authority, without obtaining an
4owners license, to conduct casino or riverboat gambling
5operations as previously authorized by the terminated,
6expired, revoked, or nonrenewed license through a licensed
7manager selected pursuant to an open and competitive bidding
8process as set forth in Section 7.5 and as provided in Section
97.4.
10    (b) The Board may locate any casino or riverboat on which a
11gambling operation is conducted by the State in any home dock
12or other location authorized by Section 3(c) upon receipt of
13approval from a majority vote of the governing body of the
14municipality or county, as the case may be, in which the
15riverboat will dock.
16    (c) The Board shall have jurisdiction over and shall
17supervise all gambling operations conducted by the State
18provided for in this Act and the Chicago Casino Development
19Authority Act and shall have all powers necessary and proper to
20fully and effectively execute the provisions of this Act and
21the Chicago Casino Development Authority Act relating to
22gambling operations conducted by the State.
23    (d) The maximum number of owners licenses authorized under
24Section 7 7(e) shall be reduced by one for each instance in
25which the Board authorizes the State to conduct a casino or
26riverboat gambling operation under subsection (a) in lieu of

 

 

HB5146- 380 -LRB100 18631 SMS 33856 b

1re-issuing a license to an applicant under Section 7.1.
2(Source: P.A. 93-28, eff. 6-20-03.)
 
3    (230 ILCS 10/7.5)
4    Sec. 7.5. Competitive Bidding. When the Board determines
5that (i) it will re-issue an owners license pursuant to an open
6and competitive bidding process, as set forth in Section 7.1,
7(ii) or that it will issue a managers license pursuant to an
8open and competitive bidding process, as set forth in Section
97.4, or (iii) it will issue an owners license pursuant to an
10open and competitive bidding process, as set forth in Section
117.12, the open and competitive bidding process shall adhere to
12the following procedures:
13    (1) The Board shall make applications for owners and
14managers licenses available to the public and allow a
15reasonable time for applicants to submit applications to the
16Board.
17    (2) During the filing period for owners or managers license
18applications, the Board may retain the services of an
19investment banking firm to assist the Board in conducting the
20open and competitive bidding process.
21    (3) After receiving all of the bid proposals, the Board
22shall open all of the proposals in a public forum and disclose
23the prospective owners or managers names, venture partners, if
24any, and, in the case of applicants for owners licenses, the
25locations of the proposed development sites.

 

 

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1    (4) The Board shall summarize the terms of the proposals
2and may make this summary available to the public.
3    (5) The Board shall evaluate the proposals within a
4reasonable time and select no more than 3 final applicants to
5make presentations of their proposals to the Board.
6    (6) The final applicants shall make their presentations to
7the Board on the same day during an open session of the Board.
8    (7) As soon as practicable after the public presentations
9by the final applicants, the Board, in its discretion, may
10conduct further negotiations among the 3 final applicants.
11During such negotiations, each final applicant may increase its
12license bid or otherwise enhance its bid proposal. At the
13conclusion of such negotiations, the Board shall select the
14winning proposal. In the case of negotiations for an owners
15license, the Board may, at the conclusion of such negotiations,
16make the determination allowed under Section 7.3(a).
17    (8) Upon selection of a winning bid, the Board shall
18evaluate the winning bid within a reasonable period of time for
19licensee suitability in accordance with all applicable
20statutory and regulatory criteria.
21    (9) If the winning bidder is unable or otherwise fails to
22consummate the transaction, (including if the Board determines
23that the winning bidder does not satisfy the suitability
24requirements), the Board may, on the same criteria, select from
25the remaining bidders or make the determination allowed under
26Section 7.3(a).

 

 

HB5146- 382 -LRB100 18631 SMS 33856 b

1(Source: P.A. 93-28, eff. 6-20-03.)
 
2    (230 ILCS 10/7.7 new)
3    Sec. 7.7. Electronic gaming.
4    (a) The General Assembly finds that the horse racing and
5riverboat gambling industries share many similarities and
6collectively comprise the bulk of the State's gaming industry.
7One feature common to both industries is that each is highly
8regulated by the State of Illinois. The General Assembly
9further finds, however, that despite their shared features each
10industry is distinct from the other in that horse racing is and
11continues to be intimately tied to Illinois' agricultural
12economy and is, at its core, a spectator sport. This
13distinction requires the General Assembly to utilize different
14methods to regulate and promote the horse racing industry
15throughout the State. The General Assembly finds that in order
16to promote live horse racing as a spectator sport in Illinois
17and the agricultural economy of this State, it is necessary to
18allow electronic gaming at Illinois race tracks as an ancillary
19use given the success of other states in increasing live racing
20purse accounts and improving the quality of horses
21participating in horse race meetings.
22    (b) The Illinois Gaming Board shall award one electronic
23gaming license to each person or entity having operating
24control of a race track that applies under Section 56 of the
25Illinois Horse Racing Act of 1975, subject to the application

 

 

HB5146- 383 -LRB100 18631 SMS 33856 b

1and eligibility requirements of this Section. Within 60 days
2after the effective date of this amendatory Act of the 100th
3General Assembly, a person or entity having operating control
4of a race track may submit an application for an electronic
5gaming license. The application shall be made on such forms as
6provided by the Board and shall contain such information as the
7Board prescribes, including, but not limited to, the identity
8of any race track at which electronic gaming will be conducted,
9detailed information regarding the ownership and management of
10the applicant, and detailed personal information regarding the
11applicant. The application shall specify the number of gaming
12positions the applicant intends to use and the place where the
13electronic gaming facility will operate. A person who knowingly
14makes a false statement on an application is guilty of a Class
15A misdemeanor.
16    Each applicant shall disclose the identity of every person
17or entity having a direct or indirect pecuniary interest
18greater than 1% in any race track with respect to which the
19license is sought. If the disclosed entity is a corporation,
20the applicant shall disclose the names and addresses of all
21stockholders and directors. If the disclosed entity is a
22limited liability company, the applicant shall disclose the
23names and addresses of all members and managers. If the
24disclosed entity is a partnership, the applicant shall disclose
25the names and addresses of all partners, both general and
26limited. If the disclosed entity is a trust, the applicant

 

 

HB5146- 384 -LRB100 18631 SMS 33856 b

1shall disclose the names and addresses of all beneficiaries.
2    An application shall be filed and considered in accordance
3with the rules of the Board. Each application for an electronic
4gaming license shall include a non-refundable application fee
5of $100,000. In addition, a non-refundable fee of $50,000 shall
6be paid at the time of filing to defray the costs associated
7with background investigations conducted by the Board. If the
8costs of the background investigation exceed $50,000, the
9applicant shall pay the additional amount to the Board within 7
10days after a request by the Board. If the costs of the
11investigation are less than $50,000, the applicant shall
12receive a refund of the remaining amount. All information,
13records, interviews, reports, statements, memoranda, or other
14data supplied to or used by the Board in the course of this
15review or investigation of an applicant for an electronic
16gaming license under this Act shall be privileged and strictly
17confidential and shall be used only for the purpose of
18evaluating an applicant for an electronic gaming license or a
19renewal. Such information, records, interviews, reports,
20statements, memoranda, or other data shall not be admissible as
21evidence nor discoverable in any action of any kind in any
22court or before any tribunal, board, agency or person, except
23for any action deemed necessary by the Board. The application
24fee shall be deposited into the Gaming Facilities Fee Revenue
25Fund.
26    Each applicant shall submit with his or her application, on

 

 

HB5146- 385 -LRB100 18631 SMS 33856 b

1forms provided by the Board, 2 sets of his or her fingerprints.
2The Board shall charge each applicant a fee set by the
3Department of State Police to defray the costs associated with
4the search and classification of fingerprints obtained by the
5Board with respect to the applicant's application. This fee
6shall be paid into the State Police Services Fund.
7    (c) The Board shall determine within 120 days after
8receiving an application for an electronic gaming license
9whether to grant an electronic gaming license to the applicant.
10If the Board does not make a determination within that time
11period, then the Board shall give a written explanation to the
12applicant as to why it has not reached a determination and when
13it reasonably expects to make a determination.
14    The electronic gaming licensee shall purchase up to the
15amount of electronic gaming positions authorized under this Act
16within 120 days after receiving its electronic gaming license.
17If an electronic gaming licensee is prepared to purchase the
18electronic gaming positions, but is temporarily prohibited
19from doing so by order of a court of competent jurisdiction or
20the Board, then the 120-day period is tolled until a resolution
21is reached.
22    An electronic gaming license shall authorize its holder to
23conduct gaming under this Act at its racetracks on the same
24days of the year and hours of the day that owner licenses are
25allowed to operate under approval of the Board.
26    A license to conduct electronic gaming and any renewal of

 

 

HB5146- 386 -LRB100 18631 SMS 33856 b

1an electronic gaming license shall authorize electronic gaming
2for a period of 4 years. The fee for the issuance or renewal of
3an electronic gaming license shall be $100,000.
4    (d) To be eligible to conduct electronic gaming, a person
5or entity having operating control of a race track must (i)
6obtain an electronic gaming license, (ii) hold an organization
7license under the Illinois Horse Racing Act of 1975, (iii) hold
8an inter-track wagering license, (iv) pay an initial fee of
9$30,000 per gaming position from electronic gaming licensees
10where electronic gaming is conducted in Cook County and $17,500
11for electronic gaming licensees where electronic gaming is
12located outside of Cook County before beginning to conduct
13electronic gaming plus make the reconciliation payment
14required under subsection (k), (v) conduct live racing in
15accordance with subsections (e-1), (e-2), and (e-3) of Section
1620 of the Illinois Horse Racing Act of 1975 or for a licensee
17that is only authorized 350 gaming positions pursuant to
18subsection (d) of Section 7.7 of this Act, have a fully
19operational facility running at least 96 live races over a
20period of at least 15 days per year until such time as the
21total number of gaming positions is increased to 900, (vi) meet
22the requirements of subsection (a) of Section 56 of the
23Illinois Horse Racing Act of 1975, (vii) for organization
24licensees conducting standardbred race meetings, keep
25backstretch barns and dormitories open and operational
26year-round unless a lesser schedule is mutually agreed to by

 

 

HB5146- 387 -LRB100 18631 SMS 33856 b

1the organization licensee and the horsemen's association
2racing at that organization licensee's race meeting, (viii) for
3organization licensees conducting thoroughbred race meetings,
4the organization licensee must maintain accident medical
5expense liability insurance coverage of $1,000,000 for
6jockeys, and (ix) meet all other requirements of this Act that
7apply to owners licensees.
8    An electronic gaming licensee may enter into a joint
9venture with a licensed owner to own, manage, conduct, or
10otherwise operate the electronic gaming licensee's electronic
11gaming facilities, unless the electronic gaming licensee has a
12parent company or other affiliated company that is, directly or
13indirectly, wholly owned by a parent company that is also
14licensed to conduct electronic gaming, casino gaming, or their
15equivalent in another state.
16    All payments by licensees under this subsection (c) shall
17be deposited into the Gaming Facilities Fee Revenue Fund.
18    (e) A person or entity is ineligible to receive an
19electronic gaming license if:
20        (1) the person or entity has been convicted of a felony
21    under the laws of this State, any other state, or the
22    United States, including a conviction under the Racketeer
23    Influenced and Corrupt Organizations Act;
24        (2) the person or entity has been convicted of any
25    violation of Article 28 of the Criminal Code of 2012, or
26    substantially similar laws of any other jurisdiction;

 

 

HB5146- 388 -LRB100 18631 SMS 33856 b

1        (3) the person or entity has submitted an application
2    for a license under this Act that contains false
3    information;
4        (4) the person is a member of the Board;
5        (5) a person defined in (1), (2), (3), or (4) of this
6    subsection (e) is an officer, director, or managerial
7    employee of the entity;
8        (6) the person or entity employs a person defined in
9    (1), (2), (3), or (4) of this subsection (e) who
10    participates in the management or operation of gambling
11    operations authorized under this Act; or
12        (7) a license of the person or entity issued under this
13    Act or a license to own or operate gambling facilities in
14    any other jurisdiction has been revoked.
15    (f) The Board may approve electronic gaming positions
16statewide as provided in this Section. The authority to operate
17electronic gaming positions under this Section shall be
18allocated as follows: up to 1,200 gaming positions for any
19electronic gaming licensee in Cook County; up to 900 gaming
20positions for any electronic gaming licensee outside of Cook
21County; and up to 350 gaming positions for any electronic
22gaming licensee whose electronic gaming license originates
23with an organization licensee that did not conduct live racing
24in calendar year 2010, which shall increase to 900 gaming
25positions in the calendar year following the year in which the
26electronic gaming licensee conducts 96 live races.

 

 

HB5146- 389 -LRB100 18631 SMS 33856 b

1    (g) Each applicant for an electronic gaming license shall
2specify in its application for licensure the number of gaming
3positions it will operate, up to the applicable limitation set
4forth in subsection (f) of this Section. Any unreserved gaming
5positions that are not specified shall be forfeited and
6retained by the Board. For the purposes of this subsection (g),
7an electronic gaming licensee that did not conduct live racing
8in 2010 may reserve up to 900 positions and shall not be
9penalized under this Section for not operating those positions
10until it meets the requirements of subsection (f) of this
11Section, but such licensee shall not request unreserved gaming
12positions under this subsection (g) until its 900 positions are
13all operational.
14    Thereafter, the Board shall publish the number of
15unreserved electronic gaming positions and shall accept
16requests for additional positions from any electronic gaming
17licensee that initially reserved all of the positions that were
18offered. The Board shall allocate expeditiously the unreserved
19electronic gaming positions to requesting electronic gaming
20licensees in a manner that maximizes revenue to the State. The
21Board may allocate any such unused electronic gaming positions
22pursuant to an open and competitive bidding process, as
23provided under Section 7.5 of this Act. This process shall
24continue until all unreserved gaming positions have been
25purchased. All positions obtained pursuant to this process and
26all positions the electronic gaming licensee specified it would

 

 

HB5146- 390 -LRB100 18631 SMS 33856 b

1operate in its application must be in operation within 18
2months after they were obtained or the electronic gaming
3licensee forfeits the right to operate those positions, but is
4not entitled to a refund of any fees paid. The Board may, after
5holding a public hearing, grant extensions so long as the
6electronic gaming licensee is working in good faith to make the
7positions operational. The extension may be for a period of 6
8months. If, after the period of the extension, the electronic
9gaming licensee has not made the positions operational, then
10another public hearing must be held by the Board before it may
11grant another extension.
12    Unreserved gaming positions retained from and allocated to
13electronic gaming licensees by the Board pursuant to this
14subsection (g) shall not be allocated to owners licensees
15pursuant to subsection (h-10) of Section 7 of this Act.
16    For the purpose of this subsection (g), the unreserved
17gaming positions for each electronic gaming licensee shall be
18the applicable limitation set forth in subsection (f) of this
19Section, less the number of reserved gaming positions by such
20electronic gaming licensee, and the total unreserved gaming
21positions shall be the aggregate of the unreserved gaming
22positions for all electronic gaming licensees.
23    (h) Subject to the approval of the Illinois Gaming Board,
24an electronic gaming licensee may make modification or
25additions to any existing buildings and structures to comply
26with the requirements of this Act. The Illinois Gaming Board

 

 

HB5146- 391 -LRB100 18631 SMS 33856 b

1shall make its decision after consulting with the Illinois
2Racing Board. In no case, however, shall the Illinois Gaming
3Board approve any modification or addition that alters the
4grounds of the organizational licensee such that the act of
5live racing is an ancillary activity to electronic gaming.
6Electronic gaming may take place in existing structures where
7inter-track wagering is conducted at the race track or a
8facility within 300 yards of the race track in accordance with
9the provisions of this Act and the Illinois Horse Racing Act of
101975.
11    (i) An electronic gaming licensee may conduct electronic
12gaming at a temporary facility pending the construction of a
13permanent facility or the remodeling or relocation of an
14existing facility to accommodate electronic gaming
15participants for up to 24 months after the temporary facility
16begins to conduct electronic gaming. Upon request by an
17electronic gaming licensee and upon a showing of good cause by
18the electronic gaming licensee, the Board shall extend the
19period during which the licensee may conduct electronic gaming
20at a temporary facility by up to 12 months. The Board shall
21make rules concerning the conduct of electronic gaming from
22temporary facilities.
23    Electronic gaming may take place in existing structures
24where inter-track wagering is conducted at the race track or a
25facility within 300 yards of the race track in accordance with
26the provisions of this Act and the Illinois Horse Racing Act of

 

 

HB5146- 392 -LRB100 18631 SMS 33856 b

11975.
2    (i-5) Under no circumstances shall an electronic gaming
3licensee conduct electronic gaming at any State or county fair.
4    (j) The Illinois Gaming Board must adopt emergency rules in
5accordance with Section 5-45 of the Illinois Administrative
6Procedure Act as necessary to ensure compliance with the
7provisions of this amendatory Act of the 100th General Assembly
8concerning electronic gaming. The adoption of emergency rules
9authorized by this subsection (j) shall be deemed to be
10necessary for the public interest, safety, and welfare.
11    (k) Each electronic gaming licensee who obtains electronic
12gaming positions must make a reconciliation payment 3 years
13after the date the electronic gaming licensee begins operating
14the positions in an amount equal to 75% of the difference
15between its adjusted gross receipts from electronic gaming and
16amounts paid to its purse accounts pursuant to item (1) of
17subsection (b) of Section 56 of the Illinois Horse Racing Act
18of 1975 for the 12-month period for which such difference was
19the largest, minus an amount equal to the initial per position
20fee paid by the electronic gaming licensee. If this calculation
21results in a negative amount, then the electronic gaming
22licensee is not entitled to any reimbursement of fees
23previously paid. This reconciliation payment may be made in
24installments over a period of no more than 2 years, subject to
25Board approval. Any installment payments shall include an
26annual market interest rate as determined by the Board.

 

 

HB5146- 393 -LRB100 18631 SMS 33856 b

1    All payments by licensees under this subsection (i) shall
2be deposited into the Gaming Facilities Fee Revenue Fund.
3    (l) As soon as practical after a request is made by the
4Illinois Gaming Board, to minimize duplicate submissions by the
5applicant, the Illinois Racing Board must provide information
6on an applicant for an electronic gaming license to the
7Illinois Gaming Board.
 
8    (230 ILCS 10/7.8 new)
9    Sec. 7.8. Home rule. The regulation and licensing of
10electronic gaming and electronic gaming licensees are
11exclusive powers and functions of the State. A home rule unit
12may not regulate or license electronic gaming or electronic
13gaming licensees. This Section is a denial and limitation of
14home rule powers and functions under subsection (h) of Section
156 of Article VII of the Illinois Constitution.
 
16    (230 ILCS 10/7.9 new)
17    Sec. 7.9. Casino operator license.
18    (a) A qualified person may apply to the Board for a casino
19operator license to operate and manage any gambling operation
20conducted by the Authority. The application shall be made on
21forms provided by the Board and shall contain such information
22as the Board prescribes, including but not limited to
23information required in Sections 6(a), (b), and (c) and
24information relating to the applicant's proposed price to

 

 

HB5146- 394 -LRB100 18631 SMS 33856 b

1manage the Authority's gambling operations and to provide the
2casino, gambling equipment, and supplies necessary to conduct
3Authority gambling operations. The application shall also
4include a non-refundable application fee of $100,000. This
5application fee shall be deposited into the Gaming Facilities
6Fee Revenue Fund.
7    (b) A person or entity is ineligible to receive a casino
8operator license if:
9        (1) the person has been convicted of a felony under the
10    laws of this State, any other state, or the United States;
11        (2) the person has been convicted of any violation of
12    Article 28 of the Criminal Code of 2012, or substantially
13    similar laws of any other jurisdiction;
14        (3) the person has submitted an application for a
15    license under this Act or the Chicago Casino Development
16    Authority Act which contains false information;
17        (4) the person is a member of the Board or the Chicago
18    Casino Development Board or the person is an official or
19    employee of the Chicago Casino Development Authority or the
20    City of Chicago;
21        (5) a person defined in (1), (2), (3), or (4) is an
22    officer, director, or managerial employee of the entity;
23        (6) the entity employs a person defined in (1), (2),
24    (3), or (4) who participates in the management or operation
25    of gambling operations authorized under this Act; or
26        (7) a license of the person or entity issued under this

 

 

HB5146- 395 -LRB100 18631 SMS 33856 b

1    Act, or a license to own or operate gambling facilities in
2    any other jurisdiction, has been revoked.
3    (c) In determining whether to grant a casino operator
4license, the Board shall consider:
5        (1) the character, reputation, experience and
6    financial integrity of the applicants and of any other or
7    separate person that either:
8            (A) controls, directly or indirectly, such
9        applicant, or
10            (B) is controlled, directly or indirectly, by such
11        applicant or by a person which controls, directly or
12        indirectly, such applicant;
13        (2) the facilities or proposed facilities for the
14    conduct of gambling;
15        (3) the preference of the municipality in which the
16    licensee will operate;
17        (4) the extent to which the ownership of the applicant
18    reflects the diversity of the State by including minority
19    persons and females and the good faith affirmative action
20    plan of each applicant to recruit, train, and upgrade
21    minority persons and females in all employment
22    classifications;
23        (5) the financial ability of the applicant to purchase
24    and maintain adequate liability and casualty insurance;
25        (6) whether the applicant has adequate capitalization
26    to provide and maintain, for the duration of a license, a

 

 

HB5146- 396 -LRB100 18631 SMS 33856 b

1    casino; and
2        (7) the extent to which the applicant exceeds or meets
3    other standards for the issuance of a casino operator
4    license that the Board may adopt by rule.
5    (d) Each applicant shall submit with his or her
6application, on forms prescribed by the Board, 2 sets of his or
7her fingerprints. The Board shall charge each applicant a fee
8set by the Department of State Police to defray the costs
9associated with the search and classification of fingerprints
10obtained by the Board with respect to the applicant's
11application. This fee shall be paid into the State Police
12Services Fund.
13    (e) A person who knowingly makes a false statement on an
14application is guilty of a Class A misdemeanor.
15    (f) The Board shall charge each applicant a non-refundable
16fee of $50,000 to defray the costs associated with the
17background investigation conducted by the Board. This fee shall
18be exclusive of any other fee or fees charged in connection
19with an application for and, if applicable, the issuance of, a
20casino operator license. If the costs of the investigation
21exceed $50,000, the Board shall immediately notify the
22applicant of the additional amount owed, payment of which must
23be submitted to the Board within 7 days after such
24notification. All information, records, interviews, reports,
25statements, memoranda, or other data supplied to or used by the
26Board in the course of its review or investigation of an

 

 

HB5146- 397 -LRB100 18631 SMS 33856 b

1application for a license or a renewal under this Act shall be
2privileged and strictly confidential and shall be used only for
3the purpose of evaluating an applicant for a license or a
4renewal. Such information, records, interviews, reports,
5statements, memoranda, or other data shall not be admissible as
6evidence, nor discoverable in any action of any kind in any
7court or before any tribunal, board, agency, or person, except
8for any action deemed necessary by the Board.
9    (g) The casino operator license shall be issued only upon
10proof that the applicant has entered into a labor peace
11agreement with each labor organization that is actively engaged
12in representing and attempting to represent casino and
13hospitality industry workers in this State. The labor peace
14agreement must be a valid and enforceable agreement under 29
15U.S.C. 185 that protects the city's and State's revenues from
16the operation of the casino facility by prohibiting the labor
17organization and its members from engaging in any picketing,
18work stoppages, boycotts, or any other economic interference
19with the casino facility for at least the first 5 years of the
20casino license and must cover all operations at the casino
21facility that are conducted by lessees or tenants or under
22management agreements.
23    (h) The casino operator license shall be for a term of 4
24years, shall be renewable by the Board, and shall contain such
25terms and provisions as the Board deems necessary to protect or
26enhance the credibility and integrity of State gambling

 

 

HB5146- 398 -LRB100 18631 SMS 33856 b

1operations, achieve the highest prospective total revenue to
2the State, and otherwise serve the interests of the citizens of
3Illinois. The Board may suspend, restrict, or revoke the
4license:
5        (1) for violation of any provision of this Act;
6        (2) for violation of any rules of the Board;
7        (3) for any cause which, if known to the Board, would
8    have disqualified the applicant from receiving the
9    license; or
10        (4) for any other just cause.
 
11    (230 ILCS 10/7.10 new)
12    Sec. 7.10. Diversity program.
13    (a) Each owners licensee, electronic gaming licensee,
14casino operator licensee, and suppliers licensee shall
15establish and maintain a diversity program to ensure
16non-discrimination in the award and administration of
17contracts. The programs shall establish goals of awarding not
18less than 20% of the annual dollar value of all contracts,
19purchase orders, or other agreements to minority-owned
20businesses and 5% of the annual dollar value of all contracts
21to female-owned businesses.
22    (b) Each owners licensee, electronic gaming licensee,
23casino operator licensee, and suppliers licensee shall
24establish and maintain a diversity program designed to promote
25equal opportunity for employment. The program shall establish

 

 

HB5146- 399 -LRB100 18631 SMS 33856 b

1hiring goals as the Board and each licensee determines
2appropriate. The Board shall monitor the progress of the gaming
3licensee's progress with respect to the program's goals.
4    (c) No later than May 31 of each year, each licensee shall
5report to the Board (1) the number of respective employees and
6the number of its respective employees who have designated
7themselves as members of a minority group and gender and (2)
8the total goals achieved under subsection (a) of this Section
9as a percentage of the total contracts awarded by the license.
10In addition, all licensees shall submit a report with respect
11to the minority-owned and female-owned businesses program
12created in this Section to the Board.
13    (d) When considering whether to re-issue or renew a license
14to an owners licensee, electronic gaming licensee, casino
15operator licensee, or suppliers licensee, the Board shall take
16into account the licensee's success in complying with the
17provisions of this Section. If an owners licensee, electronic
18gaming licensee, casino operator licensee, or suppliers
19licensee has not satisfied the goals contained in this Section,
20the Board shall require a written explanation as to why the
21licensee is not in compliance and shall require the licensee to
22file multi-year metrics designed to achieve compliance with the
23provisions by the next renewal period, consistent with State
24and federal law.
 
25    (230 ILCS 10/7.11 new)

 

 

HB5146- 400 -LRB100 18631 SMS 33856 b

1    Sec. 7.11. Annual report on diversity.
2    (a) Each licensee that receives a license under Sections 7,
37.1, and 7.7 shall execute and file a report with the Board no
4later than December 31 of each year that shall contain, but not
5be limited to, the following information:
6        (i) a good faith affirmative action plan to recruit,
7    train, and upgrade minority persons, females, and persons
8    with a disability in all employment classifications;
9        (ii) the total dollar amount of contracts that were
10    awarded to businesses owned by minority persons, females,
11    and persons with a disability;
12        (iii) the total number of businesses owned by minority
13    persons, females, and persons with a disability that were
14    utilized by the licensee;
15        (iv) the utilization of businesses owned by minority
16    persons, females, and persons with disabilities during the
17    preceding year; and
18        (v) the outreach efforts used by the licensee to
19    attract investors and businesses consisting of minority
20    persons, females, and persons with a disability.
21    (b) The Board shall forward a copy of each licensee's
22annual reports to the General Assembly no later than February 1
23of each year.
 
24    (230 ILCS 10/7.12 new)
25    Sec. 7.12. Issuance of new owners licenses.

 

 

HB5146- 401 -LRB100 18631 SMS 33856 b

1    (a) Except for the owners license issued to the Chicago
2Casino Development Authority, owners licenses newly authorized
3pursuant to this amendatory Act of the 100th General Assembly
4may be issued by the Board to a qualified applicant pursuant to
5an open and competitive bidding process, as set forth in
6Section 7.5, and subject to the maximum number of authorized
7licenses set forth in subsection (e-5) of Section 7 of this
8Act.
9    (b) To be a qualified applicant, a person or entity may not
10be ineligible to receive an owners license under subsection (a)
11of Section 7 of this Act and must submit an application for an
12owners license that complies with Section 6 of this Act.
13    (c) In determining whether to grant an owners license to an
14applicant, the Board shall consider all of the factors set
15forth in subsections (b) and (e-10) of Section 7 of this Act,
16as well as the amount of the applicant's license bid. The Board
17may grant the owners license to an applicant that has not
18submitted the highest license bid, but if it does not select
19the highest bidder, the Board shall issue a written decision
20explaining why another applicant was selected and identifying
21the factors set forth in subsections (b) and (e-10) of Section
227 of this Act that favored the winning bidder.
 
23    (230 ILCS 10/7.13 new)
24    Sec. 7.13. Environmental standards. All permanent
25casinos, riverboats, and electronic gaming facilities shall

 

 

HB5146- 402 -LRB100 18631 SMS 33856 b

1consist of buildings that are certified as meeting the U.S.
2Green Building Council's Leadership in Energy and
3Environmental Design standards. The provisions of this Section
4apply to a holder of an owners license, casino operator
5license, or electronic gaming license that (i) begins
6operations on or after January 1, 2018 or (ii) relocates its
7facilities on or after the effective date of this amendatory
8Act of the 100th General Assembly.
 
9    (230 ILCS 10/8)  (from Ch. 120, par. 2408)
10    Sec. 8. Suppliers licenses.
11    (a) The Board may issue a suppliers license to such
12persons, firms or corporations which apply therefor upon the
13payment of a non-refundable application fee set by the Board,
14upon a determination by the Board that the applicant is
15eligible for a suppliers license and upon payment of a $5,000
16annual license fee.
17    (b) The holder of a suppliers license is authorized to sell
18or lease, and to contract to sell or lease, gambling equipment
19and supplies to any licensee involved in the ownership or
20management of gambling operations.
21    (c) Gambling supplies and equipment may not be distributed
22unless supplies and equipment conform to standards adopted by
23rules of the Board.
24    (d) A person, firm or corporation is ineligible to receive
25a suppliers license if:

 

 

HB5146- 403 -LRB100 18631 SMS 33856 b

1        (1) the person has been convicted of a felony under the
2    laws of this State, any other state, or the United States;
3        (2) the person has been convicted of any violation of
4    Article 28 of the Criminal Code of 1961 or the Criminal
5    Code of 2012, or substantially similar laws of any other
6    jurisdiction;
7        (3) the person has submitted an application for a
8    license under this Act which contains false information;
9        (4) the person is a member of the Board;
10        (5) the entity firm or corporation is one in which a
11    person defined in (1), (2), (3) or (4), is an officer,
12    director or managerial employee;
13        (6) the firm or corporation employs a person who
14    participates in the management or operation of riverboat
15    gambling authorized under this Act or the Chicago Casino
16    Development Authority Act;
17        (7) the license of the person, firm or corporation
18    issued under this Act or the Chicago Casino Development
19    Authority Act, or a license to own or operate gambling
20    facilities in any other jurisdiction, has been revoked.
21    (e) Any person that supplies any equipment, devices, or
22supplies to a licensed riverboat gambling operation or casino
23or electronic gaming operation must first obtain a suppliers
24license. A supplier shall furnish to the Board a list of all
25equipment, devices and supplies offered for sale or lease in
26connection with gambling games authorized under this Act. A

 

 

HB5146- 404 -LRB100 18631 SMS 33856 b

1supplier shall keep books and records for the furnishing of
2equipment, devices and supplies to gambling operations
3separate and distinct from any other business that the supplier
4might operate. A supplier shall file a quarterly return with
5the Board listing all sales and leases. A supplier shall
6permanently affix its name or a distinctive logo or other mark
7or design element identifying the manufacturer or supplier to
8all its equipment, devices, and supplies, except gaming chips
9without a value impressed, engraved, or imprinted on it, for
10gambling operations. The Board may waive this requirement for
11any specific product or products if it determines that the
12requirement is not necessary to protect the integrity of the
13game. Items purchased from a licensed supplier may continue to
14be used even though the supplier subsequently changes its name,
15distinctive logo, or other mark or design element; undergoes a
16change in ownership; or ceases to be licensed as a supplier for
17any reason. Any supplier's equipment, devices or supplies which
18are used by any person in an unauthorized gambling operation
19shall be forfeited to the State. A holder of an owners license
20or an electronic gaming license A licensed owner may own its
21own equipment, devices and supplies. Each holder of an owners
22license or an electronic gaming license under the Act shall
23file an annual report listing its inventories of gambling
24equipment, devices and supplies.
25    (f) Any person who knowingly makes a false statement on an
26application is guilty of a Class A misdemeanor.

 

 

HB5146- 405 -LRB100 18631 SMS 33856 b

1    (g) Any gambling equipment, devices and supplies provided
2by any licensed supplier may either be repaired on the
3riverboat, in the casino, or at the electronic gaming facility
4or removed from the riverboat, casino, or electronic gaming
5facility to a an on-shore facility owned by the holder of an
6owners license or electronic gaming license for repair.
7(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
898-756, eff. 7-16-14.)
 
9    (230 ILCS 10/9)  (from Ch. 120, par. 2409)
10    Sec. 9. Occupational licenses.
11    (a) The Board may issue an occupational license to an
12applicant upon the payment of a non-refundable fee set by the
13Board, upon a determination by the Board that the applicant is
14eligible for an occupational license and upon payment of an
15annual license fee in an amount to be established. To be
16eligible for an occupational license, an applicant must:
17        (1) be at least 21 years of age if the applicant will
18    perform any function involved in gaming by patrons. Any
19    applicant seeking an occupational license for a non-gaming
20    function shall be at least 18 years of age;
21        (2) not have been convicted of a felony offense, a
22    violation of Article 28 of the Criminal Code of 1961 or the
23    Criminal Code of 2012, or a similar statute of any other
24    jurisdiction;
25        (2.5) not have been convicted of a crime, other than a

 

 

HB5146- 406 -LRB100 18631 SMS 33856 b

1    crime described in item (2) of this subsection (a),
2    involving dishonesty or moral turpitude, except that the
3    Board may, in its discretion, issue an occupational license
4    to a person who has been convicted of a crime described in
5    this item (2.5) more than 10 years prior to his or her
6    application and has not subsequently been convicted of any
7    other crime;
8        (3) have demonstrated a level of skill or knowledge
9    which the Board determines to be necessary in order to
10    operate gambling aboard a riverboat, in a casino, or at an
11    electronic gaming facility; and
12        (4) have met standards for the holding of an
13    occupational license as adopted by rules of the Board. Such
14    rules shall provide that any person or entity seeking an
15    occupational license to manage gambling operations under
16    this Act or the Chicago Casino Development Authority Act
17    hereunder shall be subject to background inquiries and
18    further requirements similar to those required of
19    applicants for an owners license. Furthermore, such rules
20    shall provide that each such entity shall be permitted to
21    manage gambling operations for only one licensed owner.
22    (b) Each application for an occupational license shall be
23on forms prescribed by the Board and shall contain all
24information required by the Board. The applicant shall set
25forth in the application: whether he has been issued prior
26gambling related licenses; whether he has been licensed in any

 

 

HB5146- 407 -LRB100 18631 SMS 33856 b

1other state under any other name, and, if so, such name and his
2age; and whether or not a permit or license issued to him in
3any other state has been suspended, restricted or revoked, and,
4if so, for what period of time.
5    (c) Each applicant shall submit with his application, on
6forms provided by the Board, 2 sets of his fingerprints. The
7Board shall charge each applicant a fee set by the Department
8of State Police to defray the costs associated with the search
9and classification of fingerprints obtained by the Board with
10respect to the applicant's application. These fees shall be
11paid into the State Police Services Fund.
12    (d) The Board may in its discretion refuse an occupational
13license to any person: (1) who is unqualified to perform the
14duties required of such applicant; (2) who fails to disclose or
15states falsely any information called for in the application;
16(3) who has been found guilty of a violation of this Act or the
17Chicago Casino Development Authority Act or whose prior
18gambling related license or application therefor has been
19suspended, restricted, revoked or denied for just cause in any
20other state; or (4) for any other just cause.
21    (e) The Board may suspend, revoke or restrict any
22occupational licensee: (1) for violation of any provision of
23this Act; (2) for violation of any of the rules and regulations
24of the Board; (3) for any cause which, if known to the Board,
25would have disqualified the applicant from receiving such
26license; or (4) for default in the payment of any obligation or

 

 

HB5146- 408 -LRB100 18631 SMS 33856 b

1debt due to the State of Illinois; or (5) for any other just
2cause.
3    (f) A person who knowingly makes a false statement on an
4application is guilty of a Class A misdemeanor.
5    (g) Any license issued pursuant to this Section shall be
6valid for a period of one year from the date of issuance.
7    (h) Nothing in this Act shall be interpreted to prohibit a
8licensed owner or electronic gaming licensee from entering into
9an agreement with a public community college or a school
10approved under the Private Business and Vocational Schools Act
11of 2012 for the training of any occupational licensee. Any
12training offered by such a school shall be in accordance with a
13written agreement between the licensed owner or electronic
14gaming licensee and the school.
15    (i) Any training provided for occupational licensees may be
16conducted either at the site of the gambling facility on the
17riverboat or at a school with which a licensed owner or
18electronic gaming licensee has entered into an agreement
19pursuant to subsection (h).
20(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
2197-1150, eff. 1-25-13.)
 
22    (230 ILCS 10/11)  (from Ch. 120, par. 2411)
23    Sec. 11. Conduct of gambling. Gambling may be conducted by
24licensed owners or licensed managers on behalf of the State
25aboard riverboats. Gambling may be conducted by electronic

 

 

HB5146- 409 -LRB100 18631 SMS 33856 b

1gaming licensees at electronic gaming facilities. Gambling may
2be conducted by a casino operator licensee at a casino.
3Gambling authorized under this Section is , subject to the
4following standards:
5        (1) A licensee may conduct riverboat gambling
6    authorized under this Act regardless of whether it conducts
7    excursion cruises. A licensee may permit the continuous
8    ingress and egress of patrons passengers on a riverboat not
9    used for excursion cruises for the purpose of gambling.
10    Excursion cruises shall not exceed 4 hours for a round
11    trip. However, the Board may grant express approval for an
12    extended cruise on a case-by-case basis.
13        (2) (Blank).
14        (3) Minimum and maximum wagers on games shall be set by
15    the licensee.
16        (4) Agents of the Board and the Department of State
17    Police may board and inspect any riverboat, enter and
18    inspect any portion of a casino, or enter and inspect any
19    portion of an electronic gaming facility at any time for
20    the purpose of determining whether this Act or the Chicago
21    Casino Development Authority Act is being complied with.
22    Every riverboat, if under way and being hailed by a law
23    enforcement officer or agent of the Board, must stop
24    immediately and lay to.
25        (5) Employees of the Board shall have the right to be
26    present on the riverboat or in the casino or on adjacent

 

 

HB5146- 410 -LRB100 18631 SMS 33856 b

1    facilities under the control of the licensee and at the
2    electronic gaming facility under the control of the
3    electronic gaming licensee.
4        (6) Gambling equipment and supplies customarily used
5    in conducting riverboat or casino gambling or electronic
6    gaming must be purchased or leased only from suppliers
7    licensed for such purpose under this Act. The Board may
8    approve the transfer, sale, or lease of gambling equipment
9    and supplies by a licensed owner from or to an affiliate of
10    the licensed owner as long as the gambling equipment and
11    supplies were initially acquired from a supplier licensed
12    in Illinois.
13        (7) Persons licensed under this Act or the Chicago
14    Casino Development Authority Act shall permit no form of
15    wagering on gambling games except as permitted by this Act.
16        (8) Wagers may be received only from a person present
17    on a licensed riverboat, in a casino, or at an electronic
18    gaming facility. No person present on a licensed riverboat,
19    in a casino, or at an electronic gaming facility shall
20    place or attempt to place a wager on behalf of another
21    person who is not present on the riverboat, in a casino, or
22    at the electronic gaming facility.
23        (9) Wagering, including electronic gaming, shall not
24    be conducted with money or other negotiable currency.
25        (10) A person under age 21 shall not be permitted on an
26    area of a riverboat or casino where gambling is being

 

 

HB5146- 411 -LRB100 18631 SMS 33856 b

1    conducted or at an electronic gaming facility where
2    gambling is being conducted, except for a person at least
3    18 years of age who is an employee of the riverboat or
4    casino gambling operation or electronic gaming operation.
5    No employee under age 21 shall perform any function
6    involved in gambling by the patrons. No person under age 21
7    shall be permitted to make a wager under this Act or the
8    Chicago Casino Development Authority Act, and any winnings
9    that are a result of a wager by a person under age 21,
10    whether or not paid by a licensee, shall be treated as
11    winnings for the privilege tax purposes, confiscated, and
12    forfeited to the State and deposited into the Education
13    Assistance Fund.
14        (11) Gambling excursion cruises are permitted only
15    when the waterway for which the riverboat is licensed is
16    navigable, as determined by the Board in consultation with
17    the U.S. Army Corps of Engineers. This paragraph (11) does
18    not limit the ability of a licensee to conduct gambling
19    authorized under this Act when gambling excursion cruises
20    are not permitted.
21        (12) All tokens, chips or electronic cards used to make
22    wagers must be purchased (i) from a licensed owner or
23    manager, in the case of a riverboat, either aboard a
24    riverboat or at an onshore facility which has been approved
25    by the Board and which is located where the riverboat
26    docks, (ii) in the case of a casino, from a licensed owner

 

 

HB5146- 412 -LRB100 18631 SMS 33856 b

1    or licensed casino operator at the casino, or (iii) from an
2    electronic gaming licensee at the electronic gaming
3    facility. The tokens, chips or electronic cards may be
4    purchased by means of an agreement under which the owner,
5    or manager, or licensed casino operator extends credit to
6    the patron. Such tokens, chips or electronic cards may be
7    used while aboard the riverboat, in the casino, or at the
8    electronic gaming facility only for the purpose of making
9    wagers on gambling games.
10        (13) Notwithstanding any other Section of this Act or
11    the Chicago Casino Development Authority Act, in addition
12    to the other licenses authorized under this Act or the
13    Chicago Casino Development Authority Act, the Board may
14    issue special event licenses allowing persons who are not
15    otherwise licensed to conduct riverboat gambling to
16    conduct such gambling on a specified date or series of
17    dates. Riverboat gambling under such a license may take
18    place on a riverboat not normally used for riverboat
19    gambling. The Board shall establish standards, fees and
20    fines for, and limitations upon, such licenses, which may
21    differ from the standards, fees, fines and limitations
22    otherwise applicable under this Act or the Chicago Casino
23    Development Authority Act. All such fees shall be deposited
24    into the State Gaming Fund. All such fines shall be
25    deposited into the Education Assistance Fund, created by
26    Public Act 86-0018, of the State of Illinois.

 

 

HB5146- 413 -LRB100 18631 SMS 33856 b

1        (14) In addition to the above, gambling must be
2    conducted in accordance with all rules adopted by the
3    Board.
4(Source: P.A. 96-1392, eff. 1-1-11.)
 
5    (230 ILCS 10/11.1)  (from Ch. 120, par. 2411.1)
6    Sec. 11.1. Collection of amounts owing under credit
7agreements. Notwithstanding any applicable statutory provision
8to the contrary, a licensed owner, licensed or manager,
9licensed casino operator, or electronic gaming licensee who
10extends credit to a riverboat gambling patron or an electronic
11gaming patron pursuant to Section 11 (a) (12) of this Act is
12expressly authorized to institute a cause of action to collect
13any amounts due and owing under the extension of credit, as
14well as the licensed owner's, licensed or manager's, licensed
15casino operator's, or electronic gaming licensee's costs,
16expenses and reasonable attorney's fees incurred in
17collection.
18(Source: P.A. 93-28, eff. 6-20-03.)
 
19    (230 ILCS 10/12)  (from Ch. 120, par. 2412)
20    Sec. 12. Admission tax; fees.
21    (a) A tax is hereby imposed upon admissions to riverboat
22and casino gambling facilities riverboats operated by licensed
23owners authorized pursuant to this Act and the Chicago Casino
24Development Authority Act. Until July 1, 2002, the rate is $2

 

 

HB5146- 414 -LRB100 18631 SMS 33856 b

1per person admitted. From July 1, 2002 until July 1, 2003, the
2rate is $3 per person admitted. From July 1, 2003 until August
323, 2005 (the effective date of Public Act 94-673), for a
4licensee that admitted 1,000,000 persons or fewer in the
5previous calendar year, the rate is $3 per person admitted; for
6a licensee that admitted more than 1,000,000 but no more than
72,300,000 persons in the previous calendar year, the rate is $4
8per person admitted; and for a licensee that admitted more than
92,300,000 persons in the previous calendar year, the rate is $5
10per person admitted. Beginning on August 23, 2005 (the
11effective date of Public Act 94-673), for a licensee that
12admitted 1,000,000 persons or fewer in calendar year 2004, the
13rate is $2 per person admitted, and for all other licensees,
14including licensees that were not conducting gambling
15operations in 2004, the rate is $3 per person admitted. This
16admission tax is imposed upon the licensed owner conducting
17gambling.
18        (1) The admission tax shall be paid for each admission,
19    except that a person who exits a riverboat gambling
20    facility and reenters that riverboat gambling facility
21    within the same gaming day shall be subject only to the
22    initial admission tax.
23        (2) (Blank).
24        (3) The riverboat licensee may issue tax-free passes to
25    actual and necessary officials and employees of the
26    licensee or other persons actually working on the

 

 

HB5146- 415 -LRB100 18631 SMS 33856 b

1    riverboat.
2        (4) The number and issuance of tax-free passes is
3    subject to the rules of the Board, and a list of all
4    persons to whom the tax-free passes are issued shall be
5    filed with the Board.
6    (a-5) A fee is hereby imposed upon admissions operated by
7licensed managers on behalf of the State pursuant to Section
87.3 at the rates provided in this subsection (a-5). For a
9licensee that admitted 1,000,000 persons or fewer in the
10previous calendar year, the rate is $3 per person admitted; for
11a licensee that admitted more than 1,000,000 but no more than
122,300,000 persons in the previous calendar year, the rate is $4
13per person admitted; and for a licensee that admitted more than
142,300,000 persons in the previous calendar year, the rate is $5
15per person admitted.
16        (1) The admission fee shall be paid for each admission.
17        (2) (Blank).
18        (3) The licensed manager may issue fee-free passes to
19    actual and necessary officials and employees of the manager
20    or other persons actually working on the riverboat.
21        (4) The number and issuance of fee-free passes is
22    subject to the rules of the Board, and a list of all
23    persons to whom the fee-free passes are issued shall be
24    filed with the Board.
25    (b) Except as provided in subsection (b-5), from From the
26tax imposed under subsection (a) and the fee imposed under

 

 

HB5146- 416 -LRB100 18631 SMS 33856 b

1subsection (a-5), a municipality shall receive from the State
2$1 for each person embarking on a riverboat docked within the
3municipality or entering a casino located within the
4municipality, and a county shall receive $1 for each person
5entering a casino or embarking on a riverboat docked within the
6county but outside the boundaries of any municipality. The
7municipality's or county's share shall be collected by the
8Board on behalf of the State and remitted quarterly by the
9State, subject to appropriation, to the treasurer of the unit
10of local government for deposit in the general fund.
11    (b-5) From the tax imposed under subsection (a) and the fee
12imposed under subsection (a-5), $1 for each person embarking on
13a riverboat designated in paragraph (4) of subsection (e-5) of
14Section 7 shall be divided as follows: $0.70 to the City of
15Rockford, $0.05 to the City of Loves Park, $0.05 to the Village
16of Machesney Park, and $0.20 to Winnebago County.
17    The municipality's or county's share shall be collected by
18the Board on behalf of the State and remitted monthly by the
19State, subject to appropriation, to the treasurer of the unit
20of local government for deposit in the general fund.
21    (c) The licensed owner shall pay the entire admission tax
22to the Board and the licensed manager or the casino operator
23licensee shall pay the entire admission fee to the Board. Such
24payments shall be made daily. Accompanying each payment shall
25be a return on forms provided by the Board which shall include
26other information regarding admissions as the Board may

 

 

HB5146- 417 -LRB100 18631 SMS 33856 b

1require. Failure to submit either the payment or the return
2within the specified time may result in suspension or
3revocation of the owners or managers license.
4    (c-5) A tax is imposed on admissions to electronic gaming
5facilities at the rate of $3 per person admitted by an
6electronic gaming licensee. The tax is imposed upon the
7electronic gaming licensee.
8        (1) The admission tax shall be paid for each admission,
9    except that a person who exits an electronic gaming
10    facility and reenters that electronic gaming facility
11    within the same gaming day, as the term "gaming day" is
12    defined by the Board by rule, shall be subject only to the
13    initial admission tax. The Board shall establish, by rule,
14    a procedure to determine whether a person admitted to an
15    electronic gaming facility has paid the admission tax.
16        (2) An electronic gaming licensee may issue tax-free
17    passes to actual and necessary officials and employees of
18    the licensee and other persons associated with electronic
19    gaming operations.
20        (3) The number and issuance of tax-free passes is
21    subject to the rules of the Board, and a list of all
22    persons to whom the tax-free passes are issued shall be
23    filed with the Board.
24        (4) The electronic gaming licensee shall pay the entire
25    admission tax to the Board.
26    Such payments shall be made daily. Accompanying each

 

 

HB5146- 418 -LRB100 18631 SMS 33856 b

1payment shall be a return on forms provided by the Board, which
2shall include other information regarding admission as the
3Board may require. Failure to submit either the payment or the
4return within the specified time may result in suspension or
5revocation of the electronic gaming license.
6    From the tax imposed under this subsection (c-5), a
7municipality other than the Village of Stickney or the City of
8Collinsville in which an electronic gaming facility is located,
9or if the electronic gaming facility is not located within a
10municipality, then the county in which the electronic gaming
11facility is located, except as otherwise provided in this
12Section, shall receive, subject to appropriation, $1 for each
13person who enters the electronic gaming facility. For each
14admission to the electronic gaming facility in excess of
151,500,000 in a year, from the tax imposed under this subsection
16(c-5), the county in which the electronic gaming facility is
17located shall receive, subject to appropriation, $0.30, which
18shall be in addition to any other moneys paid to the county
19under this Section.
20    From the tax imposed under this subsection (c-5) on an
21electronic gaming facility located in the Village of Stickney,
22$1 for each person who enters the electronic gaming facility
23shall be distributed as follows, subject to appropriation:
24$0.24 to the Village of Stickney, $0.49 to the Town of Cicero,
25$0.05 to the City of Berwyn, and $0.17 to the Stickney Public
26Health District, and $0.05 to the City of Bridgeview.

 

 

HB5146- 419 -LRB100 18631 SMS 33856 b

1    From the tax imposed under this subsection (c-5) on an
2electronic gaming facility located in the City of Collinsville,
3$1 for each person who enters the electronic gaming facility
4shall be distributed as follows, subject to appropriation:
5$0.45 to the City of Alton, $0.45 to the City of East St.
6Louis, and $0.10 to the City of Collinsville.
7    After payments required under this subsection (c-5) have
8been made, all remaining amounts shall be deposited into the
9Education Assistance Fund.
10    (d) The Board shall administer and collect the admission
11tax imposed by this Section, to the extent practicable, in a
12manner consistent with the provisions of Sections 4, 5, 5a, 5b,
135c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
14Retailers' Occupation Tax Act and Section 3-7 of the Uniform
15Penalty and Interest Act.
16(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
 
17    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
18    Sec. 13. Wagering tax; rate; distribution.
19    (a) Until January 1, 1998, a tax is imposed on the adjusted
20gross receipts received from gambling games authorized under
21this Act at the rate of 20%.
22    (a-1) From January 1, 1998 until July 1, 2002, a privilege
23tax is imposed on persons engaged in the business of conducting
24riverboat gambling operations, based on the adjusted gross
25receipts received by a licensed owner from gambling games

 

 

HB5146- 420 -LRB100 18631 SMS 33856 b

1authorized under this Act at the following rates:
2        15% of annual adjusted gross receipts up to and
3    including $25,000,000;
4        20% of annual adjusted gross receipts in excess of
5    $25,000,000 but not exceeding $50,000,000;
6        25% of annual adjusted gross receipts in excess of
7    $50,000,000 but not exceeding $75,000,000;
8        30% of annual adjusted gross receipts in excess of
9    $75,000,000 but not exceeding $100,000,000;
10        35% of annual adjusted gross receipts in excess of
11    $100,000,000.
12    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
13is imposed on persons engaged in the business of conducting
14riverboat gambling operations, other than licensed managers
15conducting riverboat gambling operations on behalf of the
16State, based on the adjusted gross receipts received by a
17licensed owner from gambling games authorized under this Act at
18the following rates:
19        15% of annual adjusted gross receipts up to and
20    including $25,000,000;
21        22.5% of annual adjusted gross receipts in excess of
22    $25,000,000 but not exceeding $50,000,000;
23        27.5% of annual adjusted gross receipts in excess of
24    $50,000,000 but not exceeding $75,000,000;
25        32.5% of annual adjusted gross receipts in excess of
26    $75,000,000 but not exceeding $100,000,000;

 

 

HB5146- 421 -LRB100 18631 SMS 33856 b

1        37.5% of annual adjusted gross receipts in excess of
2    $100,000,000 but not exceeding $150,000,000;
3        45% of annual adjusted gross receipts in excess of
4    $150,000,000 but not exceeding $200,000,000;
5        50% of annual adjusted gross receipts in excess of
6    $200,000,000.
7    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
8persons engaged in the business of conducting riverboat
9gambling operations, other than licensed managers conducting
10riverboat gambling operations on behalf of the State, based on
11the adjusted gross receipts received by a licensed owner from
12gambling games authorized under this Act at the following
13rates:
14        15% of annual adjusted gross receipts up to and
15    including $25,000,000;
16        27.5% of annual adjusted gross receipts in excess of
17    $25,000,000 but not exceeding $37,500,000;
18        32.5% of annual adjusted gross receipts in excess of
19    $37,500,000 but not exceeding $50,000,000;
20        37.5% of annual adjusted gross receipts in excess of
21    $50,000,000 but not exceeding $75,000,000;
22        45% of annual adjusted gross receipts in excess of
23    $75,000,000 but not exceeding $100,000,000;
24        50% of annual adjusted gross receipts in excess of
25    $100,000,000 but not exceeding $250,000,000;
26        70% of annual adjusted gross receipts in excess of

 

 

HB5146- 422 -LRB100 18631 SMS 33856 b

1    $250,000,000.
2    An amount equal to the amount of wagering taxes collected
3under this subsection (a-3) that are in addition to the amount
4of wagering taxes that would have been collected if the
5wagering tax rates under subsection (a-2) were in effect shall
6be paid into the Common School Fund.
7    The privilege tax imposed under this subsection (a-3) shall
8no longer be imposed beginning on the earlier of (i) July 1,
92005; (ii) the first date after June 20, 2003 that riverboat
10gambling operations are conducted pursuant to a dormant
11license; or (iii) the first day that riverboat gambling
12operations are conducted under the authority of an owners
13license that is in addition to the 10 owners licenses initially
14authorized under this Act. For the purposes of this subsection
15(a-3), the term "dormant license" means an owners license that
16is authorized by this Act under which no riverboat gambling
17operations are being conducted on June 20, 2003.
18    (a-4) Beginning on the first day on which the tax imposed
19under subsection (a-3) is no longer imposed and ending upon the
20imposition of the privilege tax under subsection (a-5) of this
21Section, a privilege tax is imposed on persons engaged in the
22business of conducting riverboat or casino gambling or
23electronic gaming operations, other than licensed managers
24conducting riverboat gambling operations on behalf of the
25State, based on the adjusted gross receipts received by a
26licensed owner from gambling games authorized under this Act at

 

 

HB5146- 423 -LRB100 18631 SMS 33856 b

1the following rates:
2        15% of annual adjusted gross receipts up to and
3    including $25,000,000;
4        22.5% of annual adjusted gross receipts in excess of
5    $25,000,000 but not exceeding $50,000,000;
6        27.5% of annual adjusted gross receipts in excess of
7    $50,000,000 but not exceeding $75,000,000;
8        32.5% of annual adjusted gross receipts in excess of
9    $75,000,000 but not exceeding $100,000,000;
10        37.5% of annual adjusted gross receipts in excess of
11    $100,000,000 but not exceeding $150,000,000;
12        45% of annual adjusted gross receipts in excess of
13    $150,000,000 but not exceeding $200,000,000;
14        50% of annual adjusted gross receipts in excess of
15    $200,000,000.
16    For the imposition of the privilege tax in this subsection
17(a-4), amounts paid pursuant to item (1) of subsection (b) of
18Section 56 of the Illinois Horse Racing Act of 1975 shall not
19be included in the determination of adjusted gross receipts.
20    (a-4.5) Beginning on the first day of the calendar month
21immediately following 24 months after the effective date of
22this amendatory Act of the 100th General Assembly and ending on
23the date gambling operations, commence at a permanent facility
24with respect to the owners license authorized under paragraph
25(1) of subsection (e-5) of Section 7 of this Act, a privilege
26tax is imposed on persons engaged in the business of conducting

 

 

HB5146- 424 -LRB100 18631 SMS 33856 b

1riverboat or casino gambling or electronic gaming operations,
2other than licensed managers conducting riverboat gambling
3operations on behalf of the State, based on the adjusted gross
4receipts received by such licensee from the gambling games
5authorized under this Act. The privilege tax shall be the
6average of the privilege tax, in terms of dollar amounts,
7calculated pursuant to subsection (a-4) and subsection (a-6).
8    (a-5) Beginning on January 1 following the opening of the
9permanent casino at which gambling operations are conducted
10pursuant to the Chicago Casino Development Authority Act, a
11privilege tax is imposed on persons engaged in the business of
12conducting riverboat or casino gambling or electronic gaming
13operations, other than licensed managers conducting riverboat
14gambling operations on behalf of the State, based on the
15adjusted gross receipts received by such licensee from the
16gambling games authorized under this Act and the Chicago Casino
17Development Authority Act. The privilege tax for all gambling
18games other than table games, including, but not limited to,
19slot machines, video game of chance gambling, and electronic
20gambling games shall be at the following rates:
21        10% of annual adjusted gross receipts up to and
22    including $25,000,000;
23        17.5% of annual adjusted gross receipts in excess of
24    $25,000,000 but not exceeding $50,000,000;
25        22.5% of annual adjusted gross receipts in excess of
26    $50,000,000 but not exceeding $75,000,000;

 

 

HB5146- 425 -LRB100 18631 SMS 33856 b

1        27.5% of annual adjusted gross receipts in excess of
2    $75,000,000 but not exceeding $100,000,000;
3        32.5% of annual adjusted gross receipts in excess of
4    $100,000,000 but not exceeding $150,000,000;
5        35% of annual adjusted gross receipts in excess of
6    $150,000,000 but not exceeding $200,000,000;
7        40% of annual adjusted gross receipts in excess of
8    $200,000,000 but not exceeding $300,000,000;
9        30% of annual adjusted gross receipts in excess of
10    $300,000,000 but not exceeding $350,000,000;
11        20% of annual adjusted gross receipts in excess of
12    $350,000,000, but not exceeding $800,000,000;
13        50% of annual adjusted gross receipts in excess of
14    $800,000,000.
15    The privilege tax for table games shall be at the following
16rates:
17        10% of annual adjusted gross receipts up to and
18    including $25,000,000;
19        17.5% of annual adjusted gross receipts in excess of
20    $25,000,000 but not exceeding $50,000,000;
21        22.5% of annual adjusted gross receipts in excess of
22    $50,000,000 but not exceeding $70,000,000;
23        16% of annual adjusted gross receipts in excess of
24    $70,000,000.
25    For the imposition of the privilege tax in this subsection
26(a-5), amounts paid pursuant to item (1) of subsection (b) of

 

 

HB5146- 426 -LRB100 18631 SMS 33856 b

1Section 56 of the Illinois Horse Racing Act of 1975 shall not
2be included in the determination of adjusted gross receipts.
3    (a-6) From the effective date of this amendatory Act of the
4100th General Assembly until June 30, 2022, an owners licensee
5that conducted gambling operations prior to January 1, 2011
6shall receive a dollar-for-dollar credit against the tax
7imposed under this Section for any renovation or construction
8costs paid by the owners licensee, but in no event shall the
9credit exceed $2,000,000.
10    Additionally, from the effective date of this amendatory
11Act of the 100th General Assembly until December 31, 2021, an
12owners licensee that (i) is located within 15 miles of the
13Missouri border, and (ii) has at least 3 riverboats, casinos,
14or their equivalent within a 45-mile radius, may be authorized
15to relocate to a new location with the approval of both the
16unit of local government designated as the home dock and the
17Board, so long as the new location is within the same unit of
18local government and no more than 3 miles away from its
19original location. Such owners licensee shall receive a credit
20against the tax imposed under this Section equal to 8% of the
21total project costs, as approved by the Board, for any
22renovation or construction costs paid by the owners licensee
23for the construction of the new facility, provided that the new
24facility is operational by July 1, 2021. In determining whether
25or not to approve a relocation, the Board must consider the
26extent to which the relocation will diminish the gaming

 

 

HB5146- 427 -LRB100 18631 SMS 33856 b

1revenues received by other Illinois gaming facilities.
2    (a-7) Beginning in the initial adjustment year and through
3the final adjustment year, if the total obligation imposed
4pursuant to either subsection (a-5) or (a-6) will result in an
5owners licensee receiving less after-tax adjusted gross
6receipts than it received in calendar year 2017, then the total
7amount of privilege taxes that the owners licensee is required
8to pay for that calendar year shall be reduced to the extent
9necessary so that the after-tax adjusted gross receipts in that
10calendar year equals the after-tax adjusted gross receipts in
11calendar year 2017, but the privilege tax reduction shall not
12exceed the annual adjustment cap. If pursuant to this
13subsection (a-7), the total obligation imposed pursuant to
14either subsection (a-5) or (a-6) shall be reduced, then the
15owners licensee shall not receive a refund from the State at
16the end of the subject calendar year but instead shall be able
17to apply that amount as a credit against any payments it owes
18to the State in the following calendar year to satisfy its
19total obligation under either subsection (a-5) or (a-6). The
20credit for the final adjustment year shall occur in the
21calendar year following the final adjustment year.
22    If an owners licensee that conducted gambling operations
23prior to January 1, 2018 expands its riverboat or casino,
24including, but not limited to, with respect to its gaming
25floor, additional non-gaming amenities such as restaurants,
26bars, and hotels and other additional facilities, and incurs

 

 

HB5146- 428 -LRB100 18631 SMS 33856 b

1construction and other costs related to such expansion from the
2effective date of this amendatory Act of the 100th General
3Assembly until the 5th anniversary of the effective date of
4this amendatory Act of the 100th General Assembly, then for
5each $15,000,000 spent for any such construction or other costs
6related to expansion paid by the owners licensee, the final
7adjustment year shall be extended by one year and the annual
8adjustment cap shall increase by 0.2% of adjusted gross
9receipts during each calendar year until and including the
10final adjustment year. No further modifications to the final
11adjustment year or annual adjustment cap shall be made after
12$75,000,000 is incurred in construction or other costs related
13to expansion so that the final adjustment year shall not extend
14beyond the 9th calendar year after the initial adjustment year,
15not including the initial adjustment year, and the annual
16adjustment cap shall not exceed 4% of adjusted gross receipts
17in a particular calendar year. Construction and other costs
18related to expansion shall include all project related costs,
19including, but not limited to, all hard and soft costs,
20financing costs, on or off-site ground, road or utility work,
21cost of gaming equipment and all other personal property,
22initial fees assessed for each incremental gaming position, and
23the cost of incremental land acquired for such expansion. Soft
24costs shall include, but not be limited to, legal fees,
25architect, engineering and design costs, other consultant
26costs, insurance cost, permitting costs, and pre-opening costs

 

 

HB5146- 429 -LRB100 18631 SMS 33856 b

1related to the expansion, including, but not limited to, any of
2the following: marketing, real estate taxes, personnel,
3training, travel and out-of-pocket expenses, supply,
4inventory, and other costs, and any other project related soft
5costs.
6    Notwithstanding any other provision of this subsection
7(a-7), this subsection (a-7) does not apply to an owners
8licensee unless such owners licensee spends at least
9$15,000,000 on construction and other costs related to its
10expansion, excluding the initial fees assessed for each
11incremental gaming position.
12    This subsection (a-7) does not apply to owners licensees
13authorized pursuant to subsection (e-5) of Section 7 of this
14Act.
15    For purposes of this subsection (a-7):
16    "Initial adjustment year" means the year commencing on
17January 1 of the calendar year immediately following the
18earlier of the following:
19        (1) the commencement of gambling operations, either in
20    a temporary or permanent facility, with respect to the
21    owners license authorized under paragraph (1) of
22    subsection (e-5) of Section 7 of this Act; or
23        (2) 36 months after the effective date of this
24    amendatory Act of the 100th General Assembly, provided the
25    initial adjustment year shall not commence earlier than 24
26    months after the effective date of this amendatory Act of

 

 

HB5146- 430 -LRB100 18631 SMS 33856 b

1    the 100th General Assembly.
2    "Final adjustment year" means the 4th calendar year after
3the initial adjustment year, not including the initial
4adjustment year, and as may be extended further as described in
5this subsection (a-7).
6    "After-tax adjusted gross receipts" means, for calendar
7year 2017, the adjusted gross receipts less privilege taxes
8paid to the State and for subsequent calendar years, the
9adjusted gross receipts less privilege taxes paid to the State,
10then divided by the owners licensee's average number of gaming
11positions operating in that calendar year and then multiplied
12by the owners licensee's average number of gaming positions
13operating in calendar year 2017.
14    "Annual adjustment cap" means 3% of adjusted gross receipts
15in a particular calendar year, and as may be increased further
16as otherwise described in this subsection (a-7).
17    (a-8) Riverboat gambling operations conducted by a
18licensed manager on behalf of the State are not subject to the
19tax imposed under this Section.
20    (a-9) Beginning on January 1, 2019, the calculation of
21gross receipts or adjusted gross receipts, for the purposes of
22this Section, for a riverboat, casino, or electronic gaming
23facility shall not include the dollar amount of non-cashable
24vouchers, coupons, and electronic promotions redeemed by
25wagerers upon the riverboat, in the casino, or in the
26electronic gaming facility up to and including an amount not to

 

 

HB5146- 431 -LRB100 18631 SMS 33856 b

1exceed 30% of a riverboat casino or electronic gaming
2facility's adjusted gross receipts.
3    The Illinois Gaming Board shall submit to the General
4Assembly a comprehensive report no later than March 31, 2022
5detailing, at a minimum, the effect of removing non-cashable
6vouchers, coupons, and electronic promotions from this
7calculation on net gaming revenues to the State in calendar
8years 2019 through 2021, the increase or reduction in wagerers
9as a result of removing non-cashable vouchers, coupons, and
10electronic promotions from this calculation, the effect of the
11tax rates in subsection (a-5) on net gaming revenues to the
12State, and proposed modifications to the calculation.
13    (a-10) The taxes imposed by this Section shall be paid by
14the licensed owner or the electronic gaming licensee to the
15Board not later than 5:00 o'clock p.m. of the day after the day
16when the wagers were made.
17    (a-15) If the privilege tax imposed under subsection (a-3)
18is no longer imposed pursuant to item (i) of the last paragraph
19of subsection (a-3), then by June 15 of each year, each owners
20licensee, other than an owners licensee that admitted 1,000,000
21persons or fewer in calendar year 2004, must, in addition to
22the payment of all amounts otherwise due under this Section,
23pay to the Board a reconciliation payment in the amount, if
24any, by which the licensed owner's base amount exceeds the
25amount of net privilege tax paid by the licensed owner to the
26Board in the then current State fiscal year. A licensed owner's

 

 

HB5146- 432 -LRB100 18631 SMS 33856 b

1net privilege tax obligation due for the balance of the State
2fiscal year shall be reduced up to the total of the amount paid
3by the licensed owner in its June 15 reconciliation payment.
4The obligation imposed by this subsection (a-15) is binding on
5any person, firm, corporation, or other entity that acquires an
6ownership interest in any such owners license. The obligation
7imposed under this subsection (a-15) terminates on the earliest
8of: (i) July 1, 2007, (ii) the first day after the effective
9date of this amendatory Act of the 94th General Assembly that
10riverboat gambling operations are conducted pursuant to a
11dormant license, (iii) the first day that riverboat gambling
12operations are conducted under the authority of an owners
13license that is in addition to the 10 owners licenses initially
14authorized under this Act, or (iv) the first day that a
15licensee under the Illinois Horse Racing Act of 1975 conducts
16gaming operations with slot machines or other electronic gaming
17devices. The Board must reduce the obligation imposed under
18this subsection (a-15) by an amount the Board deems reasonable
19for any of the following reasons: (A) an act or acts of God,
20(B) an act of bioterrorism or terrorism or a bioterrorism or
21terrorism threat that was investigated by a law enforcement
22agency, or (C) a condition beyond the control of the owners
23licensee that does not result from any act or omission by the
24owners licensee or any of its agents and that poses a hazardous
25threat to the health and safety of patrons. If an owners
26licensee pays an amount in excess of its liability under this

 

 

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1Section, the Board shall apply the overpayment to future
2payments required under this Section.
3    For purposes of this subsection (a-15):
4    "Act of God" means an incident caused by the operation of
5an extraordinary force that cannot be foreseen, that cannot be
6avoided by the exercise of due care, and for which no person
7can be held liable.
8    "Base amount" means the following:
9        For a riverboat in Alton, $31,000,000.
10        For a riverboat in East Peoria, $43,000,000.
11        For the Empress riverboat in Joliet, $86,000,000.
12        For a riverboat in Metropolis, $45,000,000.
13        For the Harrah's riverboat in Joliet, $114,000,000.
14        For a riverboat in Aurora, $86,000,000.
15        For a riverboat in East St. Louis, $48,500,000.
16        For a riverboat in Elgin, $198,000,000.
17    "Dormant license" has the meaning ascribed to it in
18subsection (a-3).
19    "Net privilege tax" means all privilege taxes paid by a
20licensed owner to the Board under this Section, less all
21payments made from the State Gaming Fund pursuant to subsection
22(b) of this Section.
23    The changes made to this subsection (a-15) by Public Act
2494-839 are intended to restate and clarify the intent of Public
25Act 94-673 with respect to the amount of the payments required
26to be made under this subsection by an owners licensee to the

 

 

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1Board.
2    (b) Until January 1, 1998, 25% of the tax revenue deposited
3in the State Gaming Fund under this Section shall be paid,
4subject to appropriation by the General Assembly, to the unit
5of local government which is designated as the home dock of the
6riverboat. Beginning January 1, 1998, from the tax revenue from
7riverboat or casino gambling deposited in the State Gaming Fund
8under this Section, an amount equal to 5% of adjusted gross
9receipts generated by a riverboat or a casino other than a
10riverboat designated in paragraph (3) or (4) of subsection
11(e-5) of Section 7, shall be paid monthly, subject to
12appropriation by the General Assembly, to the unit of local
13government in which the casino is located or that is designated
14as the home dock of the riverboat. From the tax revenue
15deposited in the State Gaming Fund pursuant to riverboat or
16casino gambling operations conducted by a licensed manager on
17behalf of the State, an amount equal to 5% of adjusted gross
18receipts generated pursuant to those riverboat or casino
19gambling operations shall be paid monthly, subject to
20appropriation by the General Assembly, to the unit of local
21government that is designated as the home dock of the riverboat
22upon which those riverboat gambling operations are conducted or
23in which the casino is located. From the tax revenue from
24riverboat or casino gambling deposited in the State Gaming Fund
25under this Section, an amount equal to 5% of the adjusted gross
26receipts generated by a riverboat designated in paragraph (3)

 

 

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1of subsection (e-5) of Section 7 shall be divided and remitted
2monthly, subject to appropriation, as follows: 50% to Waukegan,
325% to Park City, and 25% to North Chicago. From the tax
4revenue from riverboat or casino gambling deposited in the
5State Gaming Fund under this Section, an amount equal to 5% of
6the adjusted gross receipts generated by a riverboat designated
7in paragraph (4) of subsection (e-5) of Section 7 shall be
8remitted monthly, subject to appropriation, as follows: 70% to
9the City of Rockford, 5% to the City of Loves Park, 5% to the
10Village of Machesney, and 20% to Winnebago County. Units of
11local government may refund any portion of the payment that
12they receive pursuant to this subsection (b) to the riverboat
13or casino.
14    (b-5) Beginning on the effective date of this amendatory
15Act of the 100th General Assembly, from the tax revenue
16deposited in the State Gaming Fund under this Section, an
17amount equal to 3% of adjusted gross receipts generated by each
18electronic gaming facility located outside Madison County
19shall be paid monthly, subject to appropriation by the General
20Assembly, to a municipality other than the Village of Stickney
21in which each electronic gaming facility is located or, if the
22electronic gaming facility is not located within a
23municipality, to the county in which the electronic gaming
24facility is located, except as otherwise provided in this
25Section. From the tax revenue deposited in the State Gaming
26Fund under this Section, an amount equal to 3% of adjusted

 

 

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1gross receipts generated by an electronic gaming facility
2located in the Village of Stickney shall be paid monthly,
3subject to appropriation by the General Assembly, as follows:
425% to the Village of Stickney, 5% to the City of Berwyn, 50%
5to the Town of Cicero, and 20% to the Stickney Public Health
6District.
7    From the tax revenue deposited in the State Gaming Fund
8under this Section, an amount equal to 5% of adjusted gross
9receipts generated by an electronic gaming facility located in
10the City of Collinsville shall be paid monthly, subject to
11appropriation by the General Assembly, as follows: 45% to the
12City of Alton, 45% to the City of East St. Louis, and 10% to the
13City of Collinsville.
14    Municipalities and counties may refund any portion of the
15payment that they receive pursuant to this subsection (b-5) to
16the electronic gaming facility.
17    (b-6) Beginning on the effective date of this amendatory
18Act of the 100th General Assembly, from the tax revenue
19deposited in the State Gaming Fund under this Section, an
20amount equal to 2% of adjusted gross receipts generated by an
21electronic gaming facility located outside Madison County
22shall be paid monthly, subject to appropriation by the General
23Assembly, to the county in which the electronic gaming facility
24is located for the purposes of its criminal justice system or
25health care system.
26    Counties may refund any portion of the payment that they

 

 

HB5146- 437 -LRB100 18631 SMS 33856 b

1receive pursuant to this subsection (b-6) to the electronic
2gaming facility.
3    (c) Appropriations, as approved by the General Assembly,
4may be made from the State Gaming Fund to the Board (i) for the
5administration and enforcement of this Act, the Chicago Casino
6Development Authority Act, and the Video Gaming Act, (ii) for
7distribution to the Department of State Police and to the
8Department of Revenue for the enforcement of this Act, the
9Chicago Casino Development Authority Act, and the Video Gaming
10Act, and (iii) to the Department of Human Services for the
11administration of programs to treat problem gambling. The
12Board's annual appropriations request must separately state
13its funding needs for the regulation of electronic gaming,
14riverboat gaming, casino gaming within the City of Chicago, and
15video gaming. From the tax revenue deposited in the Gaming
16Facilities Fee Revenue Fund, the first $50,000,000 shall be
17paid to the Board, subject to appropriation, for the
18administration and enforcement of the provisions of this
19amendatory Act of the 100th General Assembly.
20    (c-3) Appropriations, as approved by the General Assembly,
21may be made from the tax revenue deposited into the State
22Gaming Fund from electronic gaming pursuant to this Section for
23the administration and enforcement of this Act.
24    (c-4) After payments required under subsections (b),
25(b-5), (b-6), (c), and (c-3) have been made from the tax
26revenue from electronic gaming deposited into the State Gaming

 

 

HB5146- 438 -LRB100 18631 SMS 33856 b

1Fund under this Section, all remaining amounts from electronic
2gaming shall be deposited into the Education Assistance Fund.
3    (c-5) Before May 26, 2006 (the effective date of Public Act
494-804) and beginning on the effective date of this amendatory
5Act of the 95th General Assembly, unless any organization
6licensee under the Illinois Horse Racing Act of 1975 begins to
7operate a slot machine or video game of chance under the
8Illinois Horse Racing Act of 1975 or this Act, after the
9payments required under subsections (b) and (c) have been made,
10an amount equal to 15% of the adjusted gross receipts of (1) an
11owners licensee that relocates pursuant to Section 11.2, (2) an
12owners licensee conducting riverboat gambling operations
13pursuant to an owners license that is initially issued after
14June 25, 1999, or (3) the first riverboat gambling operations
15conducted by a licensed manager on behalf of the State under
16Section 7.3, whichever comes first, shall be paid from the
17State Gaming Fund into the Horse Racing Equity Fund.
18    (c-10) Each year the General Assembly shall appropriate
19from the General Revenue Fund to the Education Assistance Fund
20an amount equal to the amount paid into the Horse Racing Equity
21Fund pursuant to subsection (c-5) in the prior calendar year.
22    (c-15) After the payments required under subsections (b),
23(c), and (c-5) have been made, an amount equal to 2% of the
24adjusted gross receipts of (1) an owners licensee that
25relocates pursuant to Section 11.2, (2) an owners licensee
26conducting riverboat gambling operations pursuant to an owners

 

 

HB5146- 439 -LRB100 18631 SMS 33856 b

1license that is initially issued after June 25, 1999, or (3)
2the first riverboat gambling operations conducted by a licensed
3manager on behalf of the State under Section 7.3, whichever
4comes first, shall be paid, subject to appropriation from the
5General Assembly, from the State Gaming Fund to each home rule
6county with a population of over 3,000,000 inhabitants for the
7purpose of enhancing the county's criminal justice system.
8    (c-20) Each year the General Assembly shall appropriate
9from the General Revenue Fund to the Education Assistance Fund
10an amount equal to the amount paid to each home rule county
11with a population of over 3,000,000 inhabitants pursuant to
12subsection (c-15) in the prior calendar year.
13    (c-25) On July 1, 2013 and each July 1 thereafter,
14$1,600,000 shall be transferred from the State Gaming Fund to
15the Chicago State University Education Improvement Fund.
16    (c-30) On July 1, 2013 or as soon as possible thereafter,
17$92,000,000 shall be transferred from the State Gaming Fund to
18the School Infrastructure Fund and $23,000,000 shall be
19transferred from the State Gaming Fund to the Horse Racing
20Equity Fund.
21    (c-35) Beginning on July 1, 2013, in addition to any amount
22transferred under subsection (c-30) of this Section,
23$5,530,000 shall be transferred monthly from the State Gaming
24Fund to the School Infrastructure Fund.
25    (d) From time to time, the Board shall transfer the
26remainder of the funds generated by this Act into the Education

 

 

HB5146- 440 -LRB100 18631 SMS 33856 b

1Assistance Fund, created by Public Act 86-0018, of the State of
2Illinois.
3    (e) Nothing in this Act shall prohibit the unit of local
4government designated as the home dock of the riverboat from
5entering into agreements with other units of local government
6in this State or in other states to share its portion of the
7tax revenue.
8    (f) To the extent practicable, the Board shall administer
9and collect the wagering taxes imposed by this Section in a
10manner consistent with the provisions of Sections 4, 5, 5a, 5b,
115c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
12Retailers' Occupation Tax Act and Section 3-7 of the Uniform
13Penalty and Interest Act.
14(Source: P.A. 98-18, eff. 6-7-13.)
 
15    (230 ILCS 10/14)  (from Ch. 120, par. 2414)
16    Sec. 14. Licensees - Records - Reports - Supervision.
17    (a) Licensed owners and electronic gaming licensees A
18licensed owner shall keep his books and records so as to
19clearly show the following:
20    (1) The amount received daily from admission fees.
21    (2) The total amount of gross receipts.
22    (3) The total amount of the adjusted gross receipts.
23    (b) Licensed owners and electronic gaming licensees The
24licensed owner shall furnish to the Board reports and
25information as the Board may require with respect to its

 

 

HB5146- 441 -LRB100 18631 SMS 33856 b

1activities on forms designed and supplied for such purpose by
2the Board.
3    (c) The books and records kept by a licensed owner as
4provided by this Section are public records and the
5examination, publication, and dissemination of the books and
6records are governed by the provisions of The Freedom of
7Information Act.
8(Source: P.A. 86-1029.)
 
9    (230 ILCS 10/15)  (from Ch. 120, par. 2415)
10    Sec. 15. Audit of Licensee Operations. Annually, the
11licensed owner, or manager, or electronic gaming licensee shall
12transmit to the Board an audit of the financial transactions
13and condition of the licensee's or manager's total operations.
14Additionally, within 90 days after the end of each quarter of
15each fiscal year, the licensed owner, or manager, or electronic
16gaming licensee shall transmit to the Board a compliance report
17on engagement procedures determined by the Board. All audits
18and compliance engagements shall be conducted by certified
19public accountants selected by the Board. Each certified public
20accountant must be registered in the State of Illinois under
21the Illinois Public Accounting Act. The compensation for each
22certified public accountant shall be paid directly by the
23licensed owner, or manager, or electronic gaming licensee to
24the certified public accountant.
25(Source: P.A. 96-1392, eff. 1-1-11.)
 

 

 

HB5146- 442 -LRB100 18631 SMS 33856 b

1    (230 ILCS 10/16)  (from Ch. 120, par. 2416)
2    Sec. 16. Annual Report of Board. The Board shall make an
3annual report to the Governor, for the period ending December
431 of each year. Included in the report shall be an account of
5the Board actions, its financial position and results of
6operation under this Act and the Chicago Casino Development
7Authority Act, the practical results attained under this Act
8and the Chicago Casino Development Authority Act and any
9recommendations for legislation which the Board deems
10advisable.
11(Source: P.A. 86-1029.)
 
12    (230 ILCS 10/17)  (from Ch. 120, par. 2417)
13    Sec. 17. Administrative Procedures. The Illinois
14Administrative Procedure Act shall apply to all administrative
15rules and procedures of the Board under this Act, the Chicago
16Casino Development Authority Act, and or the Video Gaming Act,
17except that: (1) subsection (b) of Section 5-10 of the Illinois
18Administrative Procedure Act does not apply to final orders,
19decisions and opinions of the Board; (2) subsection (a) of
20Section 5-10 of the Illinois Administrative Procedure Act does
21not apply to forms established by the Board for use under this
22Act, the Chicago Casino Development Authority Act, and or the
23Video Gaming Act; (3) the provisions of Section 10-45 of the
24Illinois Administrative Procedure Act regarding proposals for

 

 

HB5146- 443 -LRB100 18631 SMS 33856 b

1decision are excluded under this Act, the Chicago Casino
2Development Authority Act, and or the Video Gaming Act; and (4)
3the provisions of subsection (d) of Section 10-65 of the
4Illinois Administrative Procedure Act do not apply so as to
5prevent summary suspension of any license pending revocation or
6other action, which suspension shall remain in effect unless
7modified by the Board or unless the Board's decision is
8reversed on the merits upon judicial review.
9(Source: P.A. 96-34, eff. 7-13-09.)
 
10    (230 ILCS 10/17.1)  (from Ch. 120, par. 2417.1)
11    Sec. 17.1. Judicial Review.
12    (a) Jurisdiction and venue for the judicial review of a
13final order of the Board relating to licensed owners,
14suppliers, electronic gaming licensees, and or special event
15licenses is vested in the Appellate Court of the judicial
16district in which Sangamon County is located. A petition for
17judicial review of a final order of the Board must be filed in
18the Appellate Court, within 35 days from the date that a copy
19of the decision sought to be reviewed was served upon the party
20affected by the decision.
21    (b) Judicial review of all other final orders of the Board
22shall be conducted in accordance with the Administrative Review
23Law.
24(Source: P.A. 88-1.)
 

 

 

HB5146- 444 -LRB100 18631 SMS 33856 b

1    (230 ILCS 10/18)  (from Ch. 120, par. 2418)
2    Sec. 18. Prohibited Activities - Penalty.
3    (a) A person is guilty of a Class A misdemeanor for doing
4any of the following:
5        (1) Conducting gambling where wagering is used or to be
6    used without a license issued by the Board.
7        (2) Conducting gambling where wagering is permitted
8    other than in the manner specified by Section 11.
9    (b) A person is guilty of a Class B misdemeanor for doing
10any of the following:
11        (1) permitting a person under 21 years to make a wager;
12    or
13        (2) violating paragraph (12) of subsection (a) of
14    Section 11 of this Act.
15    (c) A person wagering or accepting a wager at any location
16outside the riverboat, casino, or electronic gaming facility in
17violation of paragraph is subject to the penalties in
18paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
19Criminal Code of 2012 is subject to the penalties provided in
20that Section.
21    (d) A person commits a Class 4 felony and, in addition,
22shall be barred for life from gambling operations riverboats
23under the jurisdiction of the Board, if the person does any of
24the following:
25        (1) Offers, promises, or gives anything of value or
26    benefit to a person who is connected with a riverboat or

 

 

HB5146- 445 -LRB100 18631 SMS 33856 b

1    casino owner or electronic gaming licensee, including, but
2    not limited to, an officer or employee of a licensed owner,
3    electronic gaming licensee, or holder of an occupational
4    license pursuant to an agreement or arrangement or with the
5    intent that the promise or thing of value or benefit will
6    influence the actions of the person to whom the offer,
7    promise, or gift was made in order to affect or attempt to
8    affect the outcome of a gambling game, or to influence
9    official action of a member of the Board.
10        (2) Solicits or knowingly accepts or receives a promise
11    of anything of value or benefit while the person is
12    connected with a riverboat, casino, or electronic gaming
13    facility, including, but not limited to, an officer or
14    employee of a licensed owner or electronic gaming licensee,
15    or the holder of an occupational license, pursuant to an
16    understanding or arrangement or with the intent that the
17    promise or thing of value or benefit will influence the
18    actions of the person to affect or attempt to affect the
19    outcome of a gambling game, or to influence official action
20    of a member of the Board.
21        (3) Uses or possesses with the intent to use a device
22    to assist:
23            (i) In projecting the outcome of the game.
24            (ii) In keeping track of the cards played.
25            (iii) In analyzing the probability of the
26        occurrence of an event relating to the gambling game.

 

 

HB5146- 446 -LRB100 18631 SMS 33856 b

1            (iv) In analyzing the strategy for playing or
2        betting to be used in the game except as permitted by
3        the Board.
4        (4) Cheats at a gambling game.
5        (5) Manufactures, sells, or distributes any cards,
6    chips, dice, game or device which is intended to be used to
7    violate any provision of this Act or the Chicago Casino
8    Development Authority Act.
9        (6) Alters or misrepresents the outcome of a gambling
10    game on which wagers have been made after the outcome is
11    made sure but before it is revealed to the players.
12        (7) Places a bet after acquiring knowledge, not
13    available to all players, of the outcome of the gambling
14    game which is subject of the bet or to aid a person in
15    acquiring the knowledge for the purpose of placing a bet
16    contingent on that outcome.
17        (8) Claims, collects, or takes, or attempts to claim,
18    collect, or take, money or anything of value in or from the
19    gambling games, with intent to defraud, without having made
20    a wager contingent on winning a gambling game, or claims,
21    collects, or takes an amount of money or thing of value of
22    greater value than the amount won.
23        (9) Uses counterfeit chips or tokens in a gambling
24    game.
25        (10) Possesses any key or device designed for the
26    purpose of opening, entering, or affecting the operation of

 

 

HB5146- 447 -LRB100 18631 SMS 33856 b

1    a gambling game, drop box, or an electronic or mechanical
2    device connected with the gambling game or for removing
3    coins, tokens, chips or other contents of a gambling game.
4    This paragraph (10) does not apply to a gambling licensee
5    or employee of a gambling licensee acting in furtherance of
6    the employee's employment.
7    (e) The possession of more than one of the devices
8described in subsection (d), paragraphs (3), (5), or (10)
9permits a rebuttable presumption that the possessor intended to
10use the devices for cheating.
11    (f) A person under the age of 21 who, except as authorized
12under paragraph (10) of Section 11, enters upon a riverboat or
13in a casino or electronic gaming facility commits a petty
14offense and is subject to a fine of not less than $100 or more
15than $250 for a first offense and of not less than $200 or more
16than $500 for a second or subsequent offense.
17    An action to prosecute any crime occurring on a riverboat
18shall be tried in the county of the dock at which the riverboat
19is based. An action to prosecute any crime occurring in a
20casino or electronic gaming facility shall be tried in the
21county in which the casino or electronic gaming facility is
22located.
23(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 
24    (230 ILCS 10/18.1)
25    Sec. 18.1. Distribution of certain fines. If a fine is

 

 

HB5146- 448 -LRB100 18631 SMS 33856 b

1imposed on an owner licensee or an electronic gaming licensee
2for knowingly sending marketing or promotional materials to any
3person placed on the self-exclusion list, then the Board shall
4distribute an amount equal to 15% of the fine imposed to the
5unit of local government in which the casino, riverboat, or
6electronic gaming facility is located for the purpose of
7awarding grants to non-profit entities that assist gambling
8addicts.
9(Source: P.A. 96-224, eff. 8-11-09.)
 
10    (230 ILCS 10/19)  (from Ch. 120, par. 2419)
11    Sec. 19. Forfeiture of property.
12    (a) Except as provided in subsection (b), any riverboat,
13casino, or electronic gaming facility used for the conduct of
14gambling games in violation of this Act shall be considered a
15gambling place in violation of Section 28-3 of the Criminal
16Code of 2012. Every gambling device found on a riverboat, in a
17casino, or at an electronic gaming facility operating gambling
18games in violation of this Act and every slot machine and video
19game of chance found at an electronic gaming facility operating
20gambling games in violation of this Act or the Chicago Casino
21Development Authority Act shall be subject to seizure,
22confiscation and destruction as provided in Section 28-5 of the
23Criminal Code of 2012.
24    (b) It is not a violation of this Act for a riverboat or
25other watercraft which is licensed for gaming by a contiguous

 

 

HB5146- 449 -LRB100 18631 SMS 33856 b

1state to dock on the shores of this State if the municipality
2having jurisdiction of the shores, or the county in the case of
3unincorporated areas, has granted permission for docking and no
4gaming is conducted on the riverboat or other watercraft while
5it is docked on the shores of this State. No gambling device
6shall be subject to seizure, confiscation or destruction if the
7gambling device is located on a riverboat or other watercraft
8which is licensed for gaming by a contiguous state and which is
9docked on the shores of this State if the municipality having
10jurisdiction of the shores, or the county in the case of
11unincorporated areas, has granted permission for docking and no
12gaming is conducted on the riverboat or other watercraft while
13it is docked on the shores of this State.
14(Source: P.A. 97-1150, eff. 1-25-13.)
 
15    (230 ILCS 10/20)  (from Ch. 120, par. 2420)
16    Sec. 20. Prohibited activities - civil penalties. Any
17person who conducts a gambling operation without first
18obtaining a license to do so, or who continues to conduct such
19games after revocation of his license, or any licensee who
20conducts or allows to be conducted any unauthorized gambling
21games on a riverboat, in a casino, or at an electronic gaming
22facility where it is authorized to conduct its riverboat
23gambling operation, in addition to other penalties provided,
24shall be subject to a civil penalty equal to the amount of
25gross receipts derived from wagering on the gambling games,

 

 

HB5146- 450 -LRB100 18631 SMS 33856 b

1whether unauthorized or authorized, conducted on that day as
2well as confiscation and forfeiture of all gambling game
3equipment used in the conduct of unauthorized gambling games.
4(Source: P.A. 86-1029.)
 
5    (230 ILCS 10/21)  (from Ch. 120, par. 2421)
6    Sec. 21. Limitation on taxation of licensees. Licensees
7shall not be subjected to any excise tax, license tax, permit
8tax, privilege tax, occupation tax or excursion tax which is
9imposed exclusively upon the licensee by the State or any
10political subdivision thereof, except as provided in this Act
11or the Chicago Casino Development Authority Act.
12(Source: P.A. 86-1029.)
 
13    (230 ILCS 10/23)  (from Ch. 120, par. 2423)
14    Sec. 23. The State Gaming Fund. On or after the effective
15date of this Act, except as provided for payments into the
16Horse Racing Equity Trust Fund under subsection (a) of Section
177, all of the fees and taxes collected pursuant to this Act or
18the Chicago Casino Development Authority Act shall be deposited
19into the State Gaming Fund, a special fund in the State
20Treasury, which is hereby created. The adjusted gross receipts
21of any riverboat gambling operations conducted by a licensed
22manager on behalf of the State remaining after the payment of
23the fees and expenses of the licensed manager shall be
24deposited into the State Gaming Fund. Fines and penalties

 

 

HB5146- 451 -LRB100 18631 SMS 33856 b

1collected pursuant to this Act or the Chicago Casino
2Development Authority Act shall be deposited into the Education
3Assistance Fund, created by Public Act 86-0018, of the State of
4Illinois.
5(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
 
6    (230 ILCS 10/24)
7    Sec. 24. Applicability of this Illinois Riverboat Gambling
8Act. The provisions of the this Illinois Riverboat Gambling
9Act, and all rules promulgated thereunder, shall apply to the
10Chicago Casino Development Authority Act and the Video Gaming
11Act, except where there is a conflict between the 2 Acts. In
12the event of a conflict between this Act and the Chicago Casino
13Development Authority Act, the terms of the Chicago Casino
14Development Authority Act shall prevail. In the event of a
15conflict between this Act and the Video Gaming Act, the terms
16of this Act shall prevail.
17(Source: P.A. 96-37, eff. 7-13-09.)
 
18    (230 ILCS 10/25 new)
19    Sec. 25. Wide area progressive systems. The operation of a
20wide area progressive system is permitted in gambling
21operations authorized under this Act subject to the following
22conditions:
23        (1) The method of communication over the wide area
24    progressive system must consist of dedicated on-line

 

 

HB5146- 452 -LRB100 18631 SMS 33856 b

1    communication lines or the equivalent, as determined by the
2    Administrator, or wireless communication, which may be
3    subject to certain restrictions imposed by the
4    Administrator.
5        (2) All communication between each facility location
6    and the central system site must be encrypted.
7        (3) The central system site must be located within the
8    State of Illinois and be equipped with a non-interruptible
9    power supply and the central computer must be capable of
10    on-line data redundancy should hard disk peripherals fail
11    during operation. The office containing the central
12    computer shall be equipped with a surveillance system that
13    has been approved by the Administrator. The wide area
14    progressive system provider shall be required to keep and
15    maintain an entry and exit log for the office containing
16    the central computer. The wide area progressive system
17    provider shall provide access to the office containing the
18    central computer to the Administrator and shall make
19    available to the Administrator all books, records, and
20    information required by the Administrator in fulfilling
21    his or her regulatory purpose.
22        (4) A wide area progressive system provider must
23    suspend play on the wide area progressive system if a
24    communication failure of the system cannot be corrected
25    within 24 consecutive hours.
26        (5) Approval by the Board of any wide area progressive

 

 

HB5146- 453 -LRB100 18631 SMS 33856 b

1    system shall occur only after the Administrator has
2    reviewed the wide area progressive system software and
3    hardware and is satisfied that the operation of the system
4    meets accepted industry standards for wide area
5    progressive system products, as well as any other
6    requirements that the Administrator may impose to ensure
7    the integrity, security, and legal operation of the wide
8    area progressive system.
9        (6) A meter that shows the amount of the common
10    progressive jackpot must be conspicuously displayed at or
11    near the machines to which the jackpot applies. The common
12    progressive jackpot meter need not precisely show the
13    actual moneys in the common progressive jackpot award at
14    each instant. Nothing shall prohibit the use of an odometer
15    or other paced updating progressive display to show updates
16    to the jackpot. When a paced updating display is used and
17    the remote site is communicating to the central computer,
18    the common progressive jackpot meter must display the
19    winning value after the jackpot broadcast is received from
20    the central system. If a common progressive jackpot is
21    recognized in the middle of a systemwide poll cycle, the
22    common progressive jackpot display may contain a value less
23    than the aggregated amount calculated by the central
24    system. The fund values from the remaining portion of the
25    poll cycle shall be received by the central system, but not
26    the local site, in which case the common progressive

 

 

HB5146- 454 -LRB100 18631 SMS 33856 b

1    jackpot amount paid shall always be the higher of the 2
2    reporting amounts.
3        (7) When a common progressive jackpot is won, the wide
4    area progressive system provider shall have the
5    opportunity to inspect the machine, storage media, the
6    error events received by the central system, and any other
7    data which could reasonably be used to ascertain the
8    validity of the jackpot.
9            (A) The central system shall produce reports that
10        clearly demonstrate the method of arriving at the
11        payoff amount. This shall include the funds
12        contributed beginning with the polling cycle
13        immediately following the previous jackpot and all
14        funds contributed up to and including the polling cycle
15        that includes the jackpot signal. Funds contributed to
16        and registered by the system before the jackpot message
17        is received shall be deemed to have been contributed to
18        the progressive amount prior to the current jackpot.
19        Funds contributed to the system subsequent to the
20        jackpot message's being received, as well as funds
21        contributed to the system before the jackpot message is
22        received by the system but registered after the jackpot
23        message is received at the system, shall be deemed to
24        have been contributed to the progressive amount of the
25        next jackpot.
26            (B) The common progressive jackpot may be

 

 

HB5146- 455 -LRB100 18631 SMS 33856 b

1        disbursed in periodic payments as long as each machine
2        clearly displays the fact that the jackpot shall be
3        paid in such periodic payments. In addition, the number
4        of periodic payments and time between payments must be
5        clearly displayed on the slot machine in a
6        non-misleading manner.
7            (C) A wide area progressive system provider must,
8        upon request, supply to the Board reports that support
9        and verify the economic activity of the system.
10        (8) In calculating adjusted gross revenue, a facility
11    may deduct its pro rata share of the present value of any
12    common progressive jackpots awarded. The deduction shall
13    be listed on the detailed accounting records provided by
14    the wide area progressive system provider. A facility's pro
15    rata share is based on the number of funds in from that
16    facility's machines on the wide area progressive system,
17    compared to the total amount of funds in on the whole
18    system for the time period between jackpots awarded.
19        (9) In the event a facility ceases operations and a
20    progressive jackpot is awarded subsequent to the last day
21    of the final month of operation, the facility may not file
22    an amended wagering tax submission or make a claim for a
23    wagering tax refund based on its contributions to that
24    particular progressive prize pool.
25        (10) A facility, or an entity that is licensed as a
26    manufacturer or distributor, shall provide the wide area

 

 

HB5146- 456 -LRB100 18631 SMS 33856 b

1    progressive system in accordance with a written agreement
2    that shall be reviewed and approved by the Board prior to
3    offering the jackpots.
4        (11) The payment of any common progressive jackpot
5    offered on a wide area progressive system shall be
6    administered by the wide area progressive system provider,
7    and the provider shall have primary liability for payment
8    of any common progressive jackpot the person administers.
9        (12) A wide area progressive system provider shall
10    comply with the following:
11            (A) A reserve shall be established and maintained
12        by the provider of the wide area progressive system in
13        an amount of not less than the sum of the following
14        amounts:
15                (i) the present value of the aggregate
16            remaining balances owed on all jackpots previously
17            won by patrons on the wide area progressive system;
18                (ii) the present value of the amount currently
19            reflected on the jackpot meters of the wide area
20            progressive system; and
21                (iii) the present value of one additional
22            reset of the wide area progressive system.
23            (B) The reserve shall continue to be maintained
24        until all payments owed to winners of the common
25        progressive jackpots have been made.
26            (C) For common progressive jackpots disbursed in

 

 

HB5146- 457 -LRB100 18631 SMS 33856 b

1        periodic payments, any qualified investment shall be
2        purchased within 90 days following notice of the win of
3        the common progressive jackpot, and a copy of such
4        qualified investment shall be provided to the Board
5        within 30 days of purchase. Any qualified investment
6        shall have a surrender value at maturity and shall have
7        a maturity date prior to the date the periodic jackpot
8        payment is required to be made.
9            (D) The person authorized to provide the wide area
10        progressive system shall not be permitted to sell,
11        trade, or otherwise dispose of any qualified
12        investments prior to their maturity unless approval to
13        do so is first obtained from the Board.
14            (E) Upon becoming aware of an event of
15        noncompliance with the terms of the reserve
16        requirement mandated by subparagraph (A) in this
17        paragraph (12), the wide area progressive system
18        provider must immediately notify the Board of such
19        event. An event of noncompliance includes a
20        non-payment of a jackpot periodic payment or a
21        circumstance which may cause the wide area progressive
22        system provider to be unable to fulfill, or which may
23        otherwise impair the person's ability to satisfy, the
24        person's jackpot payment obligations.
25            (F) On a quarterly basis, the wide area progressive
26        system provider must deliver to the Board a calculation

 

 

HB5146- 458 -LRB100 18631 SMS 33856 b

1        of system reserves required under subparagraph (A) in
2        this paragraph (12). The calculation shall come with a
3        certification of financial compliance signed by a duly
4        authorized financial officer of the wide area
5        progressive system provider, on a form prescribed by
6        the Board, validating the calculation.
7        (13) For common progressive jackpots disbursed in
8    periodic payments, subsequent to the date of the win, a
9    winner may be offered the option to receive, in lieu of
10    periodic payments, a discounted single cash payment in the
11    form of a qualified prize option, as that term is defined
12    in Section 451(h) of the Internal Revenue Code of 1986. The
13    wide area progressive system provider shall calculate the
14    single cash payment based on the discount rate. Until the
15    new discount rate becomes effective, the discount rate
16    selected by the wide area progressive system provider shall
17    be used to calculate the single cash payment for all
18    qualified prizes that occur subsequent to the date of the
19    selected discount rate.
 
20    Section 90-42. The Video Gaming Act is amended by changing
21Sections 5, 20, 25, 45, 79, and 80 and by adding Section 90 as
22follows:
 
23    (230 ILCS 40/5)
24    Sec. 5. Definitions. As used in this Act:

 

 

HB5146- 459 -LRB100 18631 SMS 33856 b

1    "Board" means the Illinois Gaming Board.
2    "Credit" means one, 5, 10, or 25 cents either won or
3purchased by a player.
4    "Distributor" means an individual, partnership,
5corporation, or limited liability company licensed under this
6Act to buy, sell, lease, or distribute video gaming terminals
7or major components or parts of video gaming terminals to or
8from terminal operators.
9    "Electronic card" means a card purchased from a licensed
10establishment, licensed fraternal establishment, licensed
11veterans establishment, or licensed truck stop establishment
12for use in that establishment as a substitute for cash in the
13conduct of gaming on a video gaming terminal.
14    "Electronic voucher" means a voucher printed by an
15electronic video game machine that is redeemable in the
16licensed establishment for which it was issued.
17    "Terminal operator" means an individual, partnership,
18corporation, or limited liability company that is licensed
19under this Act and that owns, services, and maintains video
20gaming terminals for placement in licensed establishments,
21licensed truck stop establishments, licensed fraternal
22establishments, or licensed veterans establishments.
23    "Licensed technician" means an individual who is licensed
24under this Act to repair, service, and maintain video gaming
25terminals.
26    "Licensed terminal handler" means a person, including but

 

 

HB5146- 460 -LRB100 18631 SMS 33856 b

1not limited to an employee or independent contractor working
2for a manufacturer, distributor, supplier, technician, or
3terminal operator, who is licensed under this Act to possess or
4control a video gaming terminal or to have access to the inner
5workings of a video gaming terminal. A licensed terminal
6handler does not include an individual, partnership,
7corporation, or limited liability company defined as a
8manufacturer, distributor, supplier, technician, or terminal
9operator under this Act.
10    "Manufacturer" means an individual, partnership,
11corporation, or limited liability company that is licensed
12under this Act and that manufactures or assembles video gaming
13terminals.
14    "Supplier" means an individual, partnership, corporation,
15or limited liability company that is licensed under this Act to
16supply major components or parts to video gaming terminals to
17licensed terminal operators.
18    "Net terminal income" means money put into a video gaming
19terminal minus credits paid out to players.
20    "Video gaming terminal" means any electronic video game
21machine that, upon insertion of cash, electronic cards or
22vouchers, or any combination thereof, is available to play or
23simulate the play of a video game, including but not limited to
24video poker, line up, and blackjack, as authorized by the Board
25utilizing a video display and microprocessors in which the
26player may receive free games or credits that can be redeemed

 

 

HB5146- 461 -LRB100 18631 SMS 33856 b

1for cash. The term does not include a machine that directly
2dispenses coins, cash, or tokens or is for amusement purposes
3only.
4    "Licensed establishment" means any licensed retail
5establishment where alcoholic liquor is drawn, poured, mixed,
6or otherwise served for consumption on the premises, whether
7the establishment operates on a nonprofit or for-profit basis.
8"Licensed establishment" includes any such establishment that
9has a contractual relationship with an inter-track wagering
10location licensee licensed under the Illinois Horse Racing Act
11of 1975, provided any contractual relationship shall not
12include any transfer or offer of revenue from the operation of
13video gaming under this Act to any licensee licensed under the
14Illinois Horse Racing Act of 1975. Provided, however, that the
15licensed establishment that has such a contractual
16relationship with an inter-track wagering location licensee
17may not, itself, be (i) an inter-track wagering location
18licensee, (ii) the corporate parent or subsidiary of any
19licensee licensed under the Illinois Horse Racing Act of 1975,
20or (iii) the corporate subsidiary of a corporation that is also
21the corporate parent or subsidiary of any licensee licensed
22under the Illinois Horse Racing Act of 1975. "Licensed
23establishment" does not include a facility operated by an
24organization licensee, an inter-track wagering licensee, or an
25inter-track wagering location licensee licensed under the
26Illinois Horse Racing Act of 1975 or a riverboat licensed under

 

 

HB5146- 462 -LRB100 18631 SMS 33856 b

1the Illinois Riverboat Gambling Act, except as provided in this
2paragraph. The changes made to this definition by Public Act
398-587 are declarative of existing law.
4    "Licensed fraternal establishment" means the location
5where a qualified fraternal organization that derives its
6charter from a national fraternal organization regularly
7meets.
8    "Licensed veterans establishment" means the location where
9a qualified veterans organization that derives its charter from
10a national veterans organization regularly meets.
11    "Licensed truck stop establishment" means a facility (i)
12that is at least a 3-acre facility with a convenience store,
13(ii) with separate diesel islands for fueling commercial motor
14vehicles, (iii) that sells at retail more than 10,000 gallons
15of diesel or biodiesel fuel per month, and (iv) with parking
16spaces for commercial motor vehicles. "Commercial motor
17vehicles" has the same meaning as defined in Section 18b-101 of
18the Illinois Vehicle Code. The requirement of item (iii) of
19this paragraph may be met by showing that estimated future
20sales or past sales average at least 10,000 gallons per month.
21(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
2298-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
237-16-14.)
 
24    (230 ILCS 40/20)
25    Sec. 20. Direct dispensing of receipt tickets only. A video

 

 

HB5146- 463 -LRB100 18631 SMS 33856 b

1gaming terminal may not directly dispense coins, cash, tokens,
2or any other article of exchange or value except for receipt
3tickets. Tickets shall be dispensed by pressing the ticket
4dispensing button on the video gaming terminal at the end of
5one's turn or play. The ticket shall indicate the total amount
6of credits and the cash award, the time of day in a 24-hour
7format showing hours and minutes, the date, the terminal serial
8number, the sequential number of the ticket, and an encrypted
9validation number from which the validity of the prize may be
10determined. The player shall turn in this ticket to the
11appropriate person at the licensed establishment, licensed
12truck stop establishment, licensed fraternal establishment, or
13licensed veterans establishment to receive the cash award. The
14cost of the credit shall be one cent, 5 cents, 10 cents, or 25
15cents, and the maximum wager played per hand shall not exceed
16$4 $2. No cash award for the maximum wager on any individual
17hand shall exceed $1,199, except in the case of a wide area
18progressive system, as defined in the Illinois Gambling Act,
19which shall have no limits for cash awards $500.
20(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
21    (230 ILCS 40/25)
22    Sec. 25. Restriction of licensees.
23    (a) Manufacturer. A person may not be licensed as a
24manufacturer of a video gaming terminal in Illinois unless the
25person has a valid manufacturer's license issued under this

 

 

HB5146- 464 -LRB100 18631 SMS 33856 b

1Act. A manufacturer may only sell video gaming terminals for
2use in Illinois to persons having a valid distributor's
3license.
4    (b) Distributor. A person may not sell, distribute, or
5lease or market a video gaming terminal in Illinois unless the
6person has a valid distributor's license issued under this Act.
7A distributor may only sell video gaming terminals for use in
8Illinois to persons having a valid distributor's or terminal
9operator's license.
10    (c) Terminal operator. A person may not own, maintain, or
11place a video gaming terminal unless he has a valid terminal
12operator's license issued under this Act. A terminal operator
13may only place video gaming terminals for use in Illinois in
14licensed establishments, licensed truck stop establishments,
15licensed fraternal establishments, and licensed veterans
16establishments. No terminal operator may give anything of
17value, including but not limited to a loan or financing
18arrangement, to a licensed establishment, licensed truck stop
19establishment, licensed fraternal establishment, or licensed
20veterans establishment as any incentive or inducement to locate
21video terminals in that establishment. Of the after-tax profits
22from a video gaming terminal, 50% shall be paid to the terminal
23operator and 50% shall be paid to the licensed establishment,
24licensed truck stop establishment, licensed fraternal
25establishment, or licensed veterans establishment,
26notwithstanding any agreement to the contrary. A video terminal

 

 

HB5146- 465 -LRB100 18631 SMS 33856 b

1operator that violates one or more requirements of this
2subsection is guilty of a Class 4 felony and is subject to
3termination of his or her license by the Board.
4    (d) Licensed technician. A person may not service,
5maintain, or repair a video gaming terminal in this State
6unless he or she (1) has a valid technician's license issued
7under this Act, (2) is a terminal operator, or (3) is employed
8by a terminal operator, distributor, or manufacturer.
9    (d-5) Licensed terminal handler. No person, including, but
10not limited to, an employee or independent contractor working
11for a manufacturer, distributor, supplier, technician, or
12terminal operator licensed pursuant to this Act, shall have
13possession or control of a video gaming terminal, or access to
14the inner workings of a video gaming terminal, unless that
15person possesses a valid terminal handler's license issued
16under this Act.
17    (e) Licensed establishment. No video gaming terminal may be
18placed in any licensed establishment, licensed veterans
19establishment, licensed truck stop establishment, or licensed
20fraternal establishment unless the owner or agent of the owner
21of the licensed establishment, licensed veterans
22establishment, licensed truck stop establishment, or licensed
23fraternal establishment has entered into a written use
24agreement with the terminal operator for placement of the
25terminals. A copy of the use agreement shall be on file in the
26terminal operator's place of business and available for

 

 

HB5146- 466 -LRB100 18631 SMS 33856 b

1inspection by individuals authorized by the Board. A licensed
2establishment, licensed truck stop establishment, licensed
3veterans establishment, or licensed fraternal establishment
4may operate up to 5 video gaming terminals on its premises at
5any time.
6    (f) (Blank).
7    (g) Financial interest restrictions. As used in this Act,
8"substantial interest" in a partnership, a corporation, an
9organization, an association, a business, or a limited
10liability company means:
11        (A) When, with respect to a sole proprietorship, an
12    individual or his or her spouse owns, operates, manages, or
13    conducts, directly or indirectly, the organization,
14    association, or business, or any part thereof; or
15        (B) When, with respect to a partnership, the individual
16    or his or her spouse shares in any of the profits, or
17    potential profits, of the partnership activities; or
18        (C) When, with respect to a corporation, an individual
19    or his or her spouse is an officer or director, or the
20    individual or his or her spouse is a holder, directly or
21    beneficially, of 5% or more of any class of stock of the
22    corporation; or
23        (D) When, with respect to an organization not covered
24    in (A), (B) or (C) above, an individual or his or her
25    spouse is an officer or manages the business affairs, or
26    the individual or his or her spouse is the owner of or

 

 

HB5146- 467 -LRB100 18631 SMS 33856 b

1    otherwise controls 10% or more of the assets of the
2    organization; or
3        (E) When an individual or his or her spouse furnishes
4    5% or more of the capital, whether in cash, goods, or
5    services, for the operation of any business, association,
6    or organization during any calendar year; or
7        (F) When, with respect to a limited liability company,
8    an individual or his or her spouse is a member, or the
9    individual or his or her spouse is a holder, directly or
10    beneficially, of 5% or more of the membership interest of
11    the limited liability company.
12    For purposes of this subsection (g), "individual" includes
13all individuals or their spouses whose combined interest would
14qualify as a substantial interest under this subsection (g) and
15whose activities with respect to an organization, association,
16or business are so closely aligned or coordinated as to
17constitute the activities of a single entity.
18    (h) Location restriction. A licensed establishment,
19licensed truck stop establishment, licensed fraternal
20establishment, or licensed veterans establishment that is (i)
21located within 1,000 feet of a facility operated by an
22organization licensee licensed under the Illinois Horse Racing
23Act of 1975 or the home dock of a riverboat licensed under the
24Illinois Riverboat Gambling Act or (ii) located within 100 feet
25of a school or a place of worship under the Religious
26Corporation Act, is ineligible to operate a video gaming

 

 

HB5146- 468 -LRB100 18631 SMS 33856 b

1terminal. The location restrictions in this subsection (h) do
2not apply if (A) a facility operated by an organization
3licensee, a school, or a place of worship moves to or is
4established within the restricted area after a licensed
5establishment, licensed truck stop establishment, licensed
6fraternal establishment, or licensed veterans establishment
7becomes licensed under this Act or (B) a school or place of
8worship moves to or is established within the restricted area
9after a licensed establishment, licensed truck stop
10establishment, licensed fraternal establishment, or licensed
11veterans establishment obtains its original liquor license.
12For the purpose of this subsection, "school" means an
13elementary or secondary public school, or an elementary or
14secondary private school registered with or recognized by the
15State Board of Education.
16    Notwithstanding the provisions of this subsection (h), the
17Board may waive the requirement that a licensed establishment,
18licensed truck stop establishment, licensed fraternal
19establishment, or licensed veterans establishment not be
20located within 1,000 feet from a facility operated by an
21organization licensee licensed under the Illinois Horse Racing
22Act of 1975 or the home dock of a riverboat licensed under the
23Illinois Riverboat Gambling Act. The Board shall not grant such
24waiver if there is any common ownership or control, shared
25business activity, or contractual arrangement of any type
26between the establishment and the organization licensee or

 

 

HB5146- 469 -LRB100 18631 SMS 33856 b

1owners licensee of a riverboat. The Board shall adopt rules to
2implement the provisions of this paragraph.
3    (i) Undue economic concentration. In addition to
4considering all other requirements under this Act, in deciding
5whether to approve the operation of video gaming terminals by a
6terminal operator in a location, the Board shall consider the
7impact of any economic concentration of such operation of video
8gaming terminals. The Board shall not allow a terminal operator
9to operate video gaming terminals if the Board determines such
10operation will result in undue economic concentration. For
11purposes of this Section, "undue economic concentration" means
12that a terminal operator would have such actual or potential
13influence over video gaming terminals in Illinois as to:
14        (1) substantially impede or suppress competition among
15    terminal operators;
16        (2) adversely impact the economic stability of the
17    video gaming industry in Illinois; or
18        (3) negatively impact the purposes of the Video Gaming
19    Act.
20    The Board shall adopt rules concerning undue economic
21concentration with respect to the operation of video gaming
22terminals in Illinois. The rules shall include, but not be
23limited to, (i) limitations on the number of video gaming
24terminals operated by any terminal operator within a defined
25geographic radius and (ii) guidelines on the discontinuation of
26operation of any such video gaming terminals the Board

 

 

HB5146- 470 -LRB100 18631 SMS 33856 b

1determines will cause undue economic concentration.
2    (j) The provisions of the Illinois Antitrust Act are fully
3and equally applicable to the activities of any licensee under
4this Act.
5(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
6eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
7    (230 ILCS 40/45)
8    Sec. 45. Issuance of license.
9    (a) The burden is upon each applicant to demonstrate his
10suitability for licensure. Each video gaming terminal
11manufacturer, distributor, supplier, operator, handler,
12licensed establishment, licensed truck stop establishment,
13licensed fraternal establishment, and licensed veterans
14establishment shall be licensed by the Board. The Board may
15issue or deny a license under this Act to any person pursuant
16to the same criteria set forth in Section 9 of the Illinois
17Riverboat Gambling Act.
18    (a-5) The Board shall not grant a license to a person who
19has facilitated, enabled, or participated in the use of
20coin-operated devices for gambling purposes or who is under the
21significant influence or control of such a person. For the
22purposes of this Act, "facilitated, enabled, or participated in
23the use of coin-operated amusement devices for gambling
24purposes" means that the person has been convicted of any
25violation of Article 28 of the Criminal Code of 1961 or the

 

 

HB5146- 471 -LRB100 18631 SMS 33856 b

1Criminal Code of 2012. If there is pending legal action against
2a person for any such violation, then the Board shall delay the
3licensure of that person until the legal action is resolved.
4    (b) Each person seeking and possessing a license as a video
5gaming terminal manufacturer, distributor, supplier, operator,
6handler, licensed establishment, licensed truck stop
7establishment, licensed fraternal establishment, or licensed
8veterans establishment shall submit to a background
9investigation conducted by the Board with the assistance of the
10State Police or other law enforcement. To the extent that the
11corporate structure of the applicant allows, the background
12investigation shall include any or all of the following as the
13Board deems appropriate or as provided by rule for each
14category of licensure: (i) each beneficiary of a trust, (ii)
15each partner of a partnership, (iii) each member of a limited
16liability company, (iv) each director and officer of a publicly
17or non-publicly held corporation, (v) each stockholder of a
18non-publicly held corporation, (vi) each stockholder of 5% or
19more of a publicly held corporation, or (vii) each stockholder
20of 5% or more in a parent or subsidiary corporation.
21    (c) Each person seeking and possessing a license as a video
22gaming terminal manufacturer, distributor, supplier, operator,
23handler, licensed establishment, licensed truck stop
24establishment, licensed fraternal establishment, or licensed
25veterans establishment shall disclose the identity of every
26person, association, trust, corporation, or limited liability

 

 

HB5146- 472 -LRB100 18631 SMS 33856 b

1company having a greater than 1% direct or indirect pecuniary
2interest in the video gaming terminal operation for which the
3license is sought. If the disclosed entity is a trust, the
4application shall disclose the names and addresses of the
5beneficiaries; if a corporation, the names and addresses of all
6stockholders and directors; if a limited liability company, the
7names and addresses of all members; or if a partnership, the
8names and addresses of all partners, both general and limited.
9    (d) No person may be licensed as a video gaming terminal
10manufacturer, distributor, supplier, operator, handler,
11licensed establishment, licensed truck stop establishment,
12licensed fraternal establishment, or licensed veterans
13establishment if that person has been found by the Board to:
14        (1) have a background, including a criminal record,
15    reputation, habits, social or business associations, or
16    prior activities that pose a threat to the public interests
17    of the State or to the security and integrity of video
18    gaming;
19        (2) create or enhance the dangers of unsuitable,
20    unfair, or illegal practices, methods, and activities in
21    the conduct of video gaming; or
22        (3) present questionable business practices and
23    financial arrangements incidental to the conduct of video
24    gaming activities.
25    (e) Any applicant for any license under this Act has the
26burden of proving his or her qualifications to the satisfaction

 

 

HB5146- 473 -LRB100 18631 SMS 33856 b

1of the Board. The Board may adopt rules to establish additional
2qualifications and requirements to preserve the integrity and
3security of video gaming in this State.
4    (f) A non-refundable application fee shall be paid at the
5time an application for a license is filed with the Board in
6the following amounts:
7        (1) Manufacturer..........................$5,000
8        (2) Distributor...........................$5,000
9        (3) Terminal operator.....................$5,000
10        (4) Supplier..............................$2,500
11        (5) Technician..............................$100
12        (6) Terminal Handler..............................$50
13    (g) The Board shall establish an annual fee for each
14license not to exceed the following:
15        (1) Manufacturer.........................$10,000
16        (2) Distributor..........................$10,000
17        (3) Terminal operator.....................$5,000
18        (4) Supplier..............................$2,000
19        (5) Technician..............................$100
20        (6) Licensed establishment, licensed truck stop
21    establishment, licensed fraternal establishment,
22    or licensed veterans establishment..............$100
23        (7) Video gaming terminal...................$100
24        (8) Terminal Handler..............................$50
25    (h) A terminal operator and a licensed establishment,
26licensed truck stop establishment, licensed fraternal

 

 

HB5146- 474 -LRB100 18631 SMS 33856 b

1establishment, or licensed veterans establishment shall
2equally split the fees specified in item (7) of subsection (g).
3(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
498-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
5    (230 ILCS 40/79)
6    Sec. 79. Investigators. Investigators appointed by the
7Board pursuant to the powers conferred upon the Board by
8paragraph (20.6) of subsection (c) of Section 5 of the Illinois
9Riverboat Gambling Act and Section 80 of this Act shall have
10authority to conduct investigations, searches, seizures,
11arrests, and other duties imposed under this Act and the
12Illinois Riverboat Gambling Act, as deemed necessary by the
13Board. These investigators have and may exercise all of the
14rights and powers of peace officers, provided that these powers
15shall be (1) limited to offenses or violations occurring or
16committed in connection with conduct subject to this Act,
17including, but not limited to, the manufacture, distribution,
18supply, operation, placement, service, maintenance, or play of
19video gaming terminals and the distribution of profits and
20collection of revenues resulting from such play, and (2)
21exercised, to the fullest extent practicable, in cooperation
22with the local police department of the applicable municipality
23or, if these powers are exercised outside the boundaries of an
24incorporated municipality or within a municipality that does
25not have its own police department, in cooperation with the

 

 

HB5146- 475 -LRB100 18631 SMS 33856 b

1police department whose jurisdiction encompasses the
2applicable locality.
3(Source: P.A. 97-809, eff. 7-13-12.)
 
4    (230 ILCS 40/80)
5    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
6The provisions of the Illinois Riverboat Gambling Act, and all
7rules promulgated thereunder, shall apply to the Video Gaming
8Act, except where there is a conflict between the 2 Acts. In
9the event of a conflict between the 2 Acts, the provisions of
10the Illinois Gambling Act shall prevail. All provisions of the
11Uniform Penalty and Interest Act shall apply, as far as
12practicable, to the subject matter of this Act to the same
13extent as if such provisions were included herein.
14(Source: P.A. 96-37, eff. 7-13-09.)
 
15    (230 ILCS 40/90 new)
16    Sec. 90. Wide area progressive systems. The operation of a
17wide area progressive system, as defined in the Illinois
18Gambling Act, is permitted, subject to the provisions of the
19Illinois Gambling Act, and the following conditions:
20        (1) Licensed terminal operators and manufacturer or
21    supplier licensees may operate one or more wide area
22    progressive systems in licensed establishments, licensed
23    truck stop establishments, licensed veterans
24    establishments, and licensed fraternal establishments. A

 

 

HB5146- 476 -LRB100 18631 SMS 33856 b

1    designated portion of a player's wager may be allocated to
2    the jackpot. The jackpot may be awarded to a player on any
3    of the video gaming terminals that are linked to the wide
4    area progressive system.
5        (2) A wide area progressive system shall at all times
6    be installed and operated in accordance with relevant
7    requirements of this Act and technical standards of wide
8    area progressive systems.
9        (3) A wide area progressive system shall be operated
10    and administered by participating licensees in accordance
11    with the terms and conditions of a written approved policy,
12    which must be submitted in writing and approved by the
13    Board prior to implementation and must comply with this Act
14    and technical standards of wide area progressive systems.
15        (4) Approved policies must address:
16            (A) responsibility for the funding and payment of
17        all jackpots, fees, and taxes associated with the
18        operation of the wide area progressive system;
19            (B) control and operation of the computer
20        monitoring room required under paragraph (5); and
21            (C) other requirements in the technical standards
22        on wide area progressive systems.
23        (5) A wide area progressive system shall be controlled
24    and operated from a computer monitoring room. The computer
25    monitoring room must:
26            (A) be under the sole possession and control of,

 

 

HB5146- 477 -LRB100 18631 SMS 33856 b

1        and maintained and operated by, employees of the
2        licensee designated in the approved policy for that
3        system; the employees of the licensee may be required
4        to obtain a terminal handler license if the Board
5        determines, after a review of the work being performed,
6        the employees require a license or permit for the
7        protection of the integrity of gaming;
8            (B) have its monitoring equipment subjected to
9        surveillance coverage either by the surveillance
10        system of a licensee or by a dedicated surveillance
11        system maintained by the terminal operator;
12            (C) be accessible through a locked door; the door
13        must be alarmed in a manner that audibly signals the
14        surveillance monitoring room for the surveillance
15        system elected under subparagraph (B) of this
16        paragraph (5); and
17            (D) have a computer monitoring room entry log.
18    This Section shall not be construed to impact the maximum
19wager as set forth in this Act.
 
20    Section 90-45. The Liquor Control Act of 1934 is amended by
21changing Sections 5-1 and 6-30 as follows:
 
22    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
23    Sec. 5-1. Licenses issued by the Illinois Liquor Control
24Commission shall be of the following classes:

 

 

HB5146- 478 -LRB100 18631 SMS 33856 b

1    (a) Manufacturer's license - Class 1. Distiller, Class 2.
2Rectifier, Class 3. Brewer, Class 4. First Class Wine
3Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
4First Class Winemaker, Class 7. Second Class Winemaker, Class
58. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
610. Class 1 Brewer, Class 11. Class 2 Brewer,
7    (b) Distributor's license,
8    (c) Importing Distributor's license,
9    (d) Retailer's license,
10    (e) Special Event Retailer's license (not-for-profit),
11    (f) Railroad license,
12    (g) Boat license,
13    (h) Non-Beverage User's license,
14    (i) Wine-maker's premises license,
15    (j) Airplane license,
16    (k) Foreign importer's license,
17    (l) Broker's license,
18    (m) Non-resident dealer's license,
19    (n) Brew Pub license,
20    (o) Auction liquor license,
21    (p) Caterer retailer license,
22    (q) Special use permit license,
23    (r) Winery shipper's license,
24    (s) Craft distiller tasting permit.
25    No person, firm, partnership, corporation, or other legal
26business entity that is engaged in the manufacturing of wine

 

 

HB5146- 479 -LRB100 18631 SMS 33856 b

1may concurrently obtain and hold a wine-maker's license and a
2wine manufacturer's license.
3    (a) A manufacturer's license shall allow the manufacture,
4importation in bulk, storage, distribution and sale of
5alcoholic liquor to persons without the State, as may be
6permitted by law and to licensees in this State as follows:
7    Class 1. A Distiller may make sales and deliveries of
8alcoholic liquor to distillers, rectifiers, importing
9distributors, distributors and non-beverage users and to no
10other licensees.
11    Class 2. A Rectifier, who is not a distiller, as defined
12herein, may make sales and deliveries of alcoholic liquor to
13rectifiers, importing distributors, distributors, retailers
14and non-beverage users and to no other licensees.
15    Class 3. A Brewer may make sales and deliveries of beer to
16importing distributors and distributors and may make sales as
17authorized under subsection (e) of Section 6-4 of this Act.
18    Class 4. A first class wine-manufacturer may make sales and
19deliveries of up to 50,000 gallons of wine to manufacturers,
20importing distributors and distributors, and to no other
21licensees.
22    Class 5. A second class Wine manufacturer may make sales
23and deliveries of more than 50,000 gallons of wine to
24manufacturers, importing distributors and distributors and to
25no other licensees.
26    Class 6. A first-class wine-maker's license shall allow the

 

 

HB5146- 480 -LRB100 18631 SMS 33856 b

1manufacture of up to 50,000 gallons of wine per year, and the
2storage and sale of such wine to distributors in the State and
3to persons without the State, as may be permitted by law. A
4person who, prior to June 1, 2008 (the effective date of Public
5Act 95-634), is a holder of a first-class wine-maker's license
6and annually produces more than 25,000 gallons of its own wine
7and who distributes its wine to licensed retailers shall cease
8this practice on or before July 1, 2008 in compliance with
9Public Act 95-634.
10    Class 7. A second-class wine-maker's license shall allow
11the manufacture of between 50,000 and 150,000 gallons of wine
12per year, and the storage and sale of such wine to distributors
13in this State and to persons without the State, as may be
14permitted by law. A person who, prior to June 1, 2008 (the
15effective date of Public Act 95-634), is a holder of a
16second-class wine-maker's license and annually produces more
17than 25,000 gallons of its own wine and who distributes its
18wine to licensed retailers shall cease this practice on or
19before July 1, 2008 in compliance with Public Act 95-634.
20    Class 8. A limited wine-manufacturer may make sales and
21deliveries not to exceed 40,000 gallons of wine per year to
22distributors, and to non-licensees in accordance with the
23provisions of this Act.
24    Class 9. A craft distiller license shall allow the
25manufacture of up to 100,000 gallons of spirits by distillation
26per year and the storage of such spirits. If a craft distiller

 

 

HB5146- 481 -LRB100 18631 SMS 33856 b

1licensee, including a craft distiller licensee who holds more
2than one craft distiller license, is not affiliated with any
3other manufacturer of spirits, then the craft distiller
4licensee may sell such spirits to distributors in this State
5and up to 2,500 gallons of such spirits to non-licensees to the
6extent permitted by any exemption approved by the Commission
7pursuant to Section 6-4 of this Act. A craft distiller license
8holder may store such spirits at a non-contiguous licensed
9location, but at no time shall a craft distiller license holder
10directly or indirectly produce in the aggregate more than
11100,000 gallons of spirits per year.
12    A craft distiller licensee may hold more than one craft
13distiller's license. However, a craft distiller that holds more
14than one craft distiller license shall not manufacture, in the
15aggregate, more than 100,000 gallons of spirits by distillation
16per year and shall not sell, in the aggregate, more than 2,500
17gallons of such spirits to non-licensees in accordance with an
18exemption approved by the State Commission pursuant to Section
196-4 of this Act.
20    Any craft distiller licensed under this Act who on July 28,
212010 (the effective date of Public Act 96-1367) was licensed as
22a distiller and manufactured no more spirits than permitted by
23this Section shall not be required to pay the initial licensing
24fee.
25    Class 10. A class 1 brewer license, which may only be
26issued to a licensed brewer or licensed non-resident dealer,

 

 

HB5146- 482 -LRB100 18631 SMS 33856 b

1shall allow the manufacture of up to 930,000 gallons of beer
2per year provided that the class 1 brewer licensee does not
3manufacture more than a combined 930,000 gallons of beer per
4year and is not a member of or affiliated with, directly or
5indirectly, a manufacturer that produces more than 930,000
6gallons of beer per year or any other alcoholic liquor. A class
71 brewer licensee may make sales and deliveries to importing
8distributors and distributors and to retail licensees in
9accordance with the conditions set forth in paragraph (18) of
10subsection (a) of Section 3-12 of this Act.
11    Class 11. A class 2 brewer license, which may only be
12issued to a licensed brewer or licensed non-resident dealer,
13shall allow the manufacture of up to 3,720,000 gallons of beer
14per year provided that the class 2 brewer licensee does not
15manufacture more than a combined 3,720,000 gallons of beer per
16year and is not a member of or affiliated with, directly or
17indirectly, a manufacturer that produces more than 3,720,000
18gallons of beer per year or any other alcoholic liquor. A class
192 brewer licensee may make sales and deliveries to importing
20distributors and distributors, but shall not make sales or
21deliveries to any other licensee. If the State Commission
22provides prior approval, a class 2 brewer licensee may annually
23transfer up to 3,720,000 gallons of beer manufactured by that
24class 2 brewer licensee to the premises of a licensed class 2
25brewer wholly owned and operated by the same licensee.
26    (a-1) A manufacturer which is licensed in this State to

 

 

HB5146- 483 -LRB100 18631 SMS 33856 b

1make sales or deliveries of alcoholic liquor to licensed
2distributors or importing distributors and which enlists
3agents, representatives, or individuals acting on its behalf
4who contact licensed retailers on a regular and continual basis
5in this State must register those agents, representatives, or
6persons acting on its behalf with the State Commission.
7    Registration of agents, representatives, or persons acting
8on behalf of a manufacturer is fulfilled by submitting a form
9to the Commission. The form shall be developed by the
10Commission and shall include the name and address of the
11applicant, the name and address of the manufacturer he or she
12represents, the territory or areas assigned to sell to or
13discuss pricing terms of alcoholic liquor, and any other
14questions deemed appropriate and necessary. All statements in
15the forms required to be made by law or by rule shall be deemed
16material, and any person who knowingly misstates any material
17fact under oath in an application is guilty of a Class B
18misdemeanor. Fraud, misrepresentation, false statements,
19misleading statements, evasions, or suppression of material
20facts in the securing of a registration are grounds for
21suspension or revocation of the registration. The State
22Commission shall post a list of registered agents on the
23Commission's website.
24    (b) A distributor's license shall allow the wholesale
25purchase and storage of alcoholic liquors and sale of alcoholic
26liquors to licensees in this State and to persons without the

 

 

HB5146- 484 -LRB100 18631 SMS 33856 b

1State, as may be permitted by law. No person licensed as a
2distributor shall be granted a non-resident dealer's license.
3    (c) An importing distributor's license may be issued to and
4held by those only who are duly licensed distributors, upon the
5filing of an application by a duly licensed distributor, with
6the Commission and the Commission shall, without the payment of
7any fee, immediately issue such importing distributor's
8license to the applicant, which shall allow the importation of
9alcoholic liquor by the licensee into this State from any point
10in the United States outside this State, and the purchase of
11alcoholic liquor in barrels, casks or other bulk containers and
12the bottling of such alcoholic liquors before resale thereof,
13but all bottles or containers so filled shall be sealed,
14labeled, stamped and otherwise made to comply with all
15provisions, rules and regulations governing manufacturers in
16the preparation and bottling of alcoholic liquors. The
17importing distributor's license shall permit such licensee to
18purchase alcoholic liquor from Illinois licensed non-resident
19dealers and foreign importers only. No person licensed as an
20importing distributor shall be granted a non-resident dealer's
21license.
22    (d) A retailer's license shall allow the licensee to sell
23and offer for sale at retail, only in the premises specified in
24the license, alcoholic liquor for use or consumption, but not
25for resale in any form. Nothing in Public Act 95-634 shall
26deny, limit, remove, or restrict the ability of a holder of a

 

 

HB5146- 485 -LRB100 18631 SMS 33856 b

1retailer's license to transfer, deliver, or ship alcoholic
2liquor to the purchaser for use or consumption subject to any
3applicable local law or ordinance. Any retail license issued to
4a manufacturer shall only permit the manufacturer to sell beer
5at retail on the premises actually occupied by the
6manufacturer. For the purpose of further describing the type of
7business conducted at a retail licensed premises, a retailer's
8licensee may be designated by the State Commission as (i) an on
9premise consumption retailer, (ii) an off premise sale
10retailer, or (iii) a combined on premise consumption and off
11premise sale retailer.
12    Notwithstanding any other provision of this subsection
13(d), a retail licensee may sell alcoholic liquors to a special
14event retailer licensee for resale to the extent permitted
15under subsection (e).
16    (e) A special event retailer's license (not-for-profit)
17shall permit the licensee to purchase alcoholic liquors from an
18Illinois licensed distributor (unless the licensee purchases
19less than $500 of alcoholic liquors for the special event, in
20which case the licensee may purchase the alcoholic liquors from
21a licensed retailer) and shall allow the licensee to sell and
22offer for sale, at retail, alcoholic liquors for use or
23consumption, but not for resale in any form and only at the
24location and on the specific dates designated for the special
25event in the license. An applicant for a special event retailer
26license must (i) furnish with the application: (A) a resale

 

 

HB5146- 486 -LRB100 18631 SMS 33856 b

1number issued under Section 2c of the Retailers' Occupation Tax
2Act or evidence that the applicant is registered under Section
32a of the Retailers' Occupation Tax Act, (B) a current, valid
4exemption identification number issued under Section 1g of the
5Retailers' Occupation Tax Act, and a certification to the
6Commission that the purchase of alcoholic liquors will be a
7tax-exempt purchase, or (C) a statement that the applicant is
8not registered under Section 2a of the Retailers' Occupation
9Tax Act, does not hold a resale number under Section 2c of the
10Retailers' Occupation Tax Act, and does not hold an exemption
11number under Section 1g of the Retailers' Occupation Tax Act,
12in which event the Commission shall set forth on the special
13event retailer's license a statement to that effect; (ii)
14submit with the application proof satisfactory to the State
15Commission that the applicant will provide dram shop liability
16insurance in the maximum limits; and (iii) show proof
17satisfactory to the State Commission that the applicant has
18obtained local authority approval.
19    (f) A railroad license shall permit the licensee to import
20alcoholic liquors into this State from any point in the United
21States outside this State and to store such alcoholic liquors
22in this State; to make wholesale purchases of alcoholic liquors
23directly from manufacturers, foreign importers, distributors
24and importing distributors from within or outside this State;
25and to store such alcoholic liquors in this State; provided
26that the above powers may be exercised only in connection with

 

 

HB5146- 487 -LRB100 18631 SMS 33856 b

1the importation, purchase or storage of alcoholic liquors to be
2sold or dispensed on a club, buffet, lounge or dining car
3operated on an electric, gas or steam railway in this State;
4and provided further, that railroad licensees exercising the
5above powers shall be subject to all provisions of Article VIII
6of this Act as applied to importing distributors. A railroad
7license shall also permit the licensee to sell or dispense
8alcoholic liquors on any club, buffet, lounge or dining car
9operated on an electric, gas or steam railway regularly
10operated by a common carrier in this State, but shall not
11permit the sale for resale of any alcoholic liquors to any
12licensee within this State. A license shall be obtained for
13each car in which such sales are made.
14    (g) A boat license shall allow the sale of alcoholic liquor
15in individual drinks, on any passenger boat regularly operated
16as a common carrier on navigable waters in this State or on any
17riverboat operated under the Illinois Riverboat Gambling Act,
18which boat or riverboat maintains a public dining room or
19restaurant thereon.
20    (h) A non-beverage user's license shall allow the licensee
21to purchase alcoholic liquor from a licensed manufacturer or
22importing distributor, without the imposition of any tax upon
23the business of such licensed manufacturer or importing
24distributor as to such alcoholic liquor to be used by such
25licensee solely for the non-beverage purposes set forth in
26subsection (a) of Section 8-1 of this Act, and such licenses

 

 

HB5146- 488 -LRB100 18631 SMS 33856 b

1shall be divided and classified and shall permit the purchase,
2possession and use of limited and stated quantities of
3alcoholic liquor as follows:
4Class 1, not to exceed ......................... 500 gallons
5Class 2, not to exceed ....................... 1,000 gallons
6Class 3, not to exceed ....................... 5,000 gallons
7Class 4, not to exceed ...................... 10,000 gallons
8Class 5, not to exceed ....................... 50,000 gallons
9    (i) A wine-maker's premises license shall allow a licensee
10that concurrently holds a first-class wine-maker's license to
11sell and offer for sale at retail in the premises specified in
12such license not more than 50,000 gallons of the first-class
13wine-maker's wine that is made at the first-class wine-maker's
14licensed premises per year for use or consumption, but not for
15resale in any form. A wine-maker's premises license shall allow
16a licensee who concurrently holds a second-class wine-maker's
17license to sell and offer for sale at retail in the premises
18specified in such license up to 100,000 gallons of the
19second-class wine-maker's wine that is made at the second-class
20wine-maker's licensed premises per year for use or consumption
21but not for resale in any form. A wine-maker's premises license
22shall allow a licensee that concurrently holds a first-class
23wine-maker's license or a second-class wine-maker's license to
24sell and offer for sale at retail at the premises specified in
25the wine-maker's premises license, for use or consumption but
26not for resale in any form, any beer, wine, and spirits

 

 

HB5146- 489 -LRB100 18631 SMS 33856 b

1purchased from a licensed distributor. Upon approval from the
2State Commission, a wine-maker's premises license shall allow
3the licensee to sell and offer for sale at (i) the wine-maker's
4licensed premises and (ii) at up to 2 additional locations for
5use and consumption and not for resale. Each location shall
6require additional licensing per location as specified in
7Section 5-3 of this Act. A wine-maker's premises licensee shall
8secure liquor liability insurance coverage in an amount at
9least equal to the maximum liability amounts set forth in
10subsection (a) of Section 6-21 of this Act.
11    (j) An airplane license shall permit the licensee to import
12alcoholic liquors into this State from any point in the United
13States outside this State and to store such alcoholic liquors
14in this State; to make wholesale purchases of alcoholic liquors
15directly from manufacturers, foreign importers, distributors
16and importing distributors from within or outside this State;
17and to store such alcoholic liquors in this State; provided
18that the above powers may be exercised only in connection with
19the importation, purchase or storage of alcoholic liquors to be
20sold or dispensed on an airplane; and provided further, that
21airplane licensees exercising the above powers shall be subject
22to all provisions of Article VIII of this Act as applied to
23importing distributors. An airplane licensee shall also permit
24the sale or dispensing of alcoholic liquors on any passenger
25airplane regularly operated by a common carrier in this State,
26but shall not permit the sale for resale of any alcoholic

 

 

HB5146- 490 -LRB100 18631 SMS 33856 b

1liquors to any licensee within this State. A single airplane
2license shall be required of an airline company if liquor
3service is provided on board aircraft in this State. The annual
4fee for such license shall be as determined in Section 5-3.
5    (k) A foreign importer's license shall permit such licensee
6to purchase alcoholic liquor from Illinois licensed
7non-resident dealers only, and to import alcoholic liquor other
8than in bulk from any point outside the United States and to
9sell such alcoholic liquor to Illinois licensed importing
10distributors and to no one else in Illinois; provided that (i)
11the foreign importer registers with the State Commission every
12brand of alcoholic liquor that it proposes to sell to Illinois
13licensees during the license period, (ii) the foreign importer
14complies with all of the provisions of Section 6-9 of this Act
15with respect to registration of such Illinois licensees as may
16be granted the right to sell such brands at wholesale, and
17(iii) the foreign importer complies with the provisions of
18Sections 6-5 and 6-6 of this Act to the same extent that these
19provisions apply to manufacturers.
20    (l) (i) A broker's license shall be required of all persons
21who solicit orders for, offer to sell or offer to supply
22alcoholic liquor to retailers in the State of Illinois, or who
23offer to retailers to ship or cause to be shipped or to make
24contact with distillers, rectifiers, brewers or manufacturers
25or any other party within or without the State of Illinois in
26order that alcoholic liquors be shipped to a distributor,

 

 

HB5146- 491 -LRB100 18631 SMS 33856 b

1importing distributor or foreign importer, whether such
2solicitation or offer is consummated within or without the
3State of Illinois.
4    No holder of a retailer's license issued by the Illinois
5Liquor Control Commission shall purchase or receive any
6alcoholic liquor, the order for which was solicited or offered
7for sale to such retailer by a broker unless the broker is the
8holder of a valid broker's license.
9    The broker shall, upon the acceptance by a retailer of the
10broker's solicitation of an order or offer to sell or supply or
11deliver or have delivered alcoholic liquors, promptly forward
12to the Illinois Liquor Control Commission a notification of
13said transaction in such form as the Commission may by
14regulations prescribe.
15    (ii) A broker's license shall be required of a person
16within this State, other than a retail licensee, who, for a fee
17or commission, promotes, solicits, or accepts orders for
18alcoholic liquor, for use or consumption and not for resale, to
19be shipped from this State and delivered to residents outside
20of this State by an express company, common carrier, or
21contract carrier. This Section does not apply to any person who
22promotes, solicits, or accepts orders for wine as specifically
23authorized in Section 6-29 of this Act.
24    A broker's license under this subsection (l) shall not
25entitle the holder to buy or sell any alcoholic liquors for his
26own account or to take or deliver title to such alcoholic

 

 

HB5146- 492 -LRB100 18631 SMS 33856 b

1liquors.
2    This subsection (l) shall not apply to distributors,
3employees of distributors, or employees of a manufacturer who
4has registered the trademark, brand or name of the alcoholic
5liquor pursuant to Section 6-9 of this Act, and who regularly
6sells such alcoholic liquor in the State of Illinois only to
7its registrants thereunder.
8    Any agent, representative, or person subject to
9registration pursuant to subsection (a-1) of this Section shall
10not be eligible to receive a broker's license.
11    (m) A non-resident dealer's license shall permit such
12licensee to ship into and warehouse alcoholic liquor into this
13State from any point outside of this State, and to sell such
14alcoholic liquor to Illinois licensed foreign importers and
15importing distributors and to no one else in this State;
16provided that (i) said non-resident dealer shall register with
17the Illinois Liquor Control Commission each and every brand of
18alcoholic liquor which it proposes to sell to Illinois
19licensees during the license period, (ii) it shall comply with
20all of the provisions of Section 6-9 hereof with respect to
21registration of such Illinois licensees as may be granted the
22right to sell such brands at wholesale, and (iii) the
23non-resident dealer shall comply with the provisions of
24Sections 6-5 and 6-6 of this Act to the same extent that these
25provisions apply to manufacturers. No person licensed as a
26non-resident dealer shall be granted a distributor's or

 

 

HB5146- 493 -LRB100 18631 SMS 33856 b

1importing distributor's license.
2    (n) A brew pub license shall allow the licensee to only (i)
3manufacture up to 155,000 gallons of beer per year only on the
4premises specified in the license, (ii) make sales of the beer
5manufactured on the premises or, with the approval of the
6Commission, beer manufactured on another brew pub licensed
7premises that is wholly owned and operated by the same licensee
8to importing distributors, distributors, and to non-licensees
9for use and consumption, (iii) store the beer upon the
10premises, (iv) sell and offer for sale at retail from the
11licensed premises for off-premises consumption no more than
12155,000 gallons per year so long as such sales are only made
13in-person, (v) sell and offer for sale at retail for use and
14consumption on the premises specified in the license any form
15of alcoholic liquor purchased from a licensed distributor or
16importing distributor, and (vi) with the prior approval of the
17Commission, annually transfer no more than 155,000 gallons of
18beer manufactured on the premises to a licensed brew pub wholly
19owned and operated by the same licensee.
20    A brew pub licensee shall not under any circumstance sell
21or offer for sale beer manufactured by the brew pub licensee to
22retail licensees.
23    A person who holds a class 2 brewer license may
24simultaneously hold a brew pub license if the class 2 brewer
25(i) does not, under any circumstance, sell or offer for sale
26beer manufactured by the class 2 brewer to retail licensees;

 

 

HB5146- 494 -LRB100 18631 SMS 33856 b

1(ii) does not hold more than 3 brew pub licenses in this State;
2(iii) does not manufacture more than a combined 3,720,000
3gallons of beer per year, including the beer manufactured at
4the brew pub; and (iv) is not a member of or affiliated with,
5directly or indirectly, a manufacturer that produces more than
63,720,000 gallons of beer per year or any other alcoholic
7liquor.
8    Notwithstanding any other provision of this Act, a licensed
9brewer, class 2 brewer, or non-resident dealer who before July
101, 2015 manufactured less than 3,720,000 gallons of beer per
11year and held a brew pub license on or before July 1, 2015 may
12(i) continue to qualify for and hold that brew pub license for
13the licensed premises and (ii) manufacture more than 3,720,000
14gallons of beer per year and continue to qualify for and hold
15that brew pub license if that brewer, class 2 brewer, or
16non-resident dealer does not simultaneously hold a class 1
17brewer license and is not a member of or affiliated with,
18directly or indirectly, a manufacturer that produces more than
193,720,000 gallons of beer per year or that produces any other
20alcoholic liquor.
21    (o) A caterer retailer license shall allow the holder to
22serve alcoholic liquors as an incidental part of a food service
23that serves prepared meals which excludes the serving of snacks
24as the primary meal, either on or off-site whether licensed or
25unlicensed.
26    (p) An auction liquor license shall allow the licensee to

 

 

HB5146- 495 -LRB100 18631 SMS 33856 b

1sell and offer for sale at auction wine and spirits for use or
2consumption, or for resale by an Illinois liquor licensee in
3accordance with provisions of this Act. An auction liquor
4license will be issued to a person and it will permit the
5auction liquor licensee to hold the auction anywhere in the
6State. An auction liquor license must be obtained for each
7auction at least 14 days in advance of the auction date.
8    (q) A special use permit license shall allow an Illinois
9licensed retailer to transfer a portion of its alcoholic liquor
10inventory from its retail licensed premises to the premises
11specified in the license hereby created, and to sell or offer
12for sale at retail, only in the premises specified in the
13license hereby created, the transferred alcoholic liquor for
14use or consumption, but not for resale in any form. A special
15use permit license may be granted for the following time
16periods: one day or less; 2 or more days to a maximum of 15 days
17per location in any 12-month period. An applicant for the
18special use permit license must also submit with the
19application proof satisfactory to the State Commission that the
20applicant will provide dram shop liability insurance to the
21maximum limits and have local authority approval.
22    (r) A winery shipper's license shall allow a person with a
23first-class or second-class wine manufacturer's license, a
24first-class or second-class wine-maker's license, or a limited
25wine manufacturer's license or who is licensed to make wine
26under the laws of another state to ship wine made by that

 

 

HB5146- 496 -LRB100 18631 SMS 33856 b

1licensee directly to a resident of this State who is 21 years
2of age or older for that resident's personal use and not for
3resale. Prior to receiving a winery shipper's license, an
4applicant for the license must provide the Commission with a
5true copy of its current license in any state in which it is
6licensed as a manufacturer of wine. An applicant for a winery
7shipper's license must also complete an application form that
8provides any other information the Commission deems necessary.
9The application form shall include all addresses from which the
10applicant for a winery shipper's license intends to ship wine,
11including the name and address of any third party, except for a
12common carrier, authorized to ship wine on behalf of the
13manufacturer. The application form shall include an
14acknowledgement consenting to the jurisdiction of the
15Commission, the Illinois Department of Revenue, and the courts
16of this State concerning the enforcement of this Act and any
17related laws, rules, and regulations, including authorizing
18the Department of Revenue and the Commission to conduct audits
19for the purpose of ensuring compliance with Public Act 95-634,
20and an acknowledgement that the wine manufacturer is in
21compliance with Section 6-2 of this Act. Any third party,
22except for a common carrier, authorized to ship wine on behalf
23of a first-class or second-class wine manufacturer's licensee,
24a first-class or second-class wine-maker's licensee, a limited
25wine manufacturer's licensee, or a person who is licensed to
26make wine under the laws of another state shall also be

 

 

HB5146- 497 -LRB100 18631 SMS 33856 b

1disclosed by the winery shipper's licensee, and a copy of the
2written appointment of the third-party wine provider, except
3for a common carrier, to the wine manufacturer shall be filed
4with the State Commission as a supplement to the winery
5shipper's license application or any renewal thereof. The
6winery shipper's license holder shall affirm under penalty of
7perjury, as part of the winery shipper's license application or
8renewal, that he or she only ships wine, either directly or
9indirectly through a third-party provider, from the licensee's
10own production.
11    Except for a common carrier, a third-party provider
12shipping wine on behalf of a winery shipper's license holder is
13the agent of the winery shipper's license holder and, as such,
14a winery shipper's license holder is responsible for the acts
15and omissions of the third-party provider acting on behalf of
16the license holder. A third-party provider, except for a common
17carrier, that engages in shipping wine into Illinois on behalf
18of a winery shipper's license holder shall consent to the
19jurisdiction of the State Commission and the State. Any
20third-party, except for a common carrier, holding such an
21appointment shall, by February 1 of each calendar year and upon
22request by the State Commission or the Department of Revenue,
23file with the State Commission a statement detailing each
24shipment made to an Illinois resident. The statement shall
25include the name and address of the third-party provider filing
26the statement, the time period covered by the statement, and

 

 

HB5146- 498 -LRB100 18631 SMS 33856 b

1the following information:
2        (1) the name, address, and license number of the winery
3    shipper on whose behalf the shipment was made;
4        (2) the quantity of the products delivered; and
5        (3) the date and address of the shipment.
6If the Department of Revenue or the State Commission requests a
7statement under this paragraph, the third-party provider must
8provide that statement no later than 30 days after the request
9is made. Any books, records, supporting papers, and documents
10containing information and data relating to a statement under
11this paragraph shall be kept and preserved for a period of 3
12years, unless their destruction sooner is authorized, in
13writing, by the Director of Revenue, and shall be open and
14available to inspection by the Director of Revenue or the State
15Commission or any duly authorized officer, agent, or employee
16of the State Commission or the Department of Revenue, at all
17times during business hours of the day. Any person who violates
18any provision of this paragraph or any rule of the State
19Commission for the administration and enforcement of the
20provisions of this paragraph is guilty of a Class C
21misdemeanor. In case of a continuing violation, each day's
22continuance thereof shall be a separate and distinct offense.
23    The State Commission shall adopt rules as soon as
24practicable to implement the requirements of Public Act 99-904
25and shall adopt rules prohibiting any such third-party
26appointment of a third-party provider, except for a common

 

 

HB5146- 499 -LRB100 18631 SMS 33856 b

1carrier, that has been deemed by the State Commission to have
2violated the provisions of this Act with regard to any winery
3shipper licensee.
4    A winery shipper licensee must pay to the Department of
5Revenue the State liquor gallonage tax under Section 8-1 for
6all wine that is sold by the licensee and shipped to a person
7in this State. For the purposes of Section 8-1, a winery
8shipper licensee shall be taxed in the same manner as a
9manufacturer of wine. A licensee who is not otherwise required
10to register under the Retailers' Occupation Tax Act must
11register under the Use Tax Act to collect and remit use tax to
12the Department of Revenue for all gallons of wine that are sold
13by the licensee and shipped to persons in this State. If a
14licensee fails to remit the tax imposed under this Act in
15accordance with the provisions of Article VIII of this Act, the
16winery shipper's license shall be revoked in accordance with
17the provisions of Article VII of this Act. If a licensee fails
18to properly register and remit tax under the Use Tax Act or the
19Retailers' Occupation Tax Act for all wine that is sold by the
20winery shipper and shipped to persons in this State, the winery
21shipper's license shall be revoked in accordance with the
22provisions of Article VII of this Act.
23    A winery shipper licensee must collect, maintain, and
24submit to the Commission on a semi-annual basis the total
25number of cases per resident of wine shipped to residents of
26this State. A winery shipper licensed under this subsection (r)

 

 

HB5146- 500 -LRB100 18631 SMS 33856 b

1must comply with the requirements of Section 6-29 of this Act.
2    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
3Section 3-12, the State Commission may receive, respond to, and
4investigate any complaint and impose any of the remedies
5specified in paragraph (1) of subsection (a) of Section 3-12.
6    As used in this subsection, "third-party provider" means
7any entity that provides fulfillment house services, including
8warehousing, packaging, distribution, order processing, or
9shipment of wine, but not the sale of wine, on behalf of a
10licensed winery shipper.
11    (s) A craft distiller tasting permit license shall allow an
12Illinois licensed craft distiller to transfer a portion of its
13alcoholic liquor inventory from its craft distiller licensed
14premises to the premises specified in the license hereby
15created and to conduct a sampling, only in the premises
16specified in the license hereby created, of the transferred
17alcoholic liquor in accordance with subsection (c) of Section
186-31 of this Act. The transferred alcoholic liquor may not be
19sold or resold in any form. An applicant for the craft
20distiller tasting permit license must also submit with the
21application proof satisfactory to the State Commission that the
22applicant will provide dram shop liability insurance to the
23maximum limits and have local authority approval.
24(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
2599-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
261-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
 

 

 

HB5146- 501 -LRB100 18631 SMS 33856 b

1    (235 ILCS 5/6-30)  (from Ch. 43, par. 144f)
2    Sec. 6-30. Notwithstanding any other provision of this Act,
3the Illinois Gaming Board shall have exclusive authority to
4establish the hours for sale and consumption of alcoholic
5liquor on board a riverboat during riverboat gambling
6excursions and in a casino conducted in accordance with the
7Illinois Riverboat Gambling Act.
8(Source: P.A. 87-826.)
 
9    Section 90-46. The Illinois Public Aid Code is amended by
10changing Section 10-17.15 as follows:
 
11    (305 ILCS 5/10-17.15)
12    Sec. 10-17.15. Certification of information to State
13gaming licensees.
14    (a) For purposes of this Section, "State gaming licensee"
15means, as applicable, an organization licensee or advance
16deposit wagering licensee licensed under the Illinois Horse
17Racing Act of 1975, an owners licensee licensed under the
18Illinois Riverboat Gambling Act, or a licensee that operates,
19under any law of this State, one or more facilities or gaming
20locations at which lawful gambling is authorized and licensed
21as provided in the Illinois Riverboat Gambling Act.
22    (b) The Department may provide, by rule, for certification
23to any State gaming licensee of past due child support owed by

 

 

HB5146- 502 -LRB100 18631 SMS 33856 b

1a responsible relative under a support order entered by a court
2or administrative body of this or any other State on behalf of
3a resident or non-resident receiving child support services
4under this Article in accordance with the requirements of Title
5IV-D, Part D, of the Social Security Act. The State gaming
6licensee shall have the ability to withhold from winnings
7required to be reported to the Internal Revenue Service on Form
8W-2G, up to the full amount of winnings necessary to pay the
9winner's past due child support. The rule shall provide for
10notice to and an opportunity to be heard by each responsible
11relative affected and any final administrative decision
12rendered by the Department shall be reviewed only under and in
13accordance with the Administrative Review Law.
14    (c) For withholding of winnings, the State gaming licensee
15shall be entitled to an administrative fee not to exceed the
16lesser of 4% of the total amount of cash winnings paid to the
17gambling winner or $150.
18    (d) In no event may the total amount withheld from the cash
19payout, including the administrative fee, exceed the total cash
20winnings claimed by the obligor. If the cash payout claimed is
21greater than the amount sufficient to satisfy the obligor's
22delinquent child support payments, the State gaming licensee
23shall pay the obligor the remaining balance of the payout, less
24the administrative fee authorized by subsection (c) of this
25Section, at the time it is claimed.
26    (e) A State gaming licensee who in good faith complies with

 

 

HB5146- 503 -LRB100 18631 SMS 33856 b

1the requirements of this Section shall not be liable to the
2gaming winner or any other individual or entity.
3(Source: P.A. 98-318, eff. 8-12-13.)
 
4    Section 90-47. The Firearm Concealed Carry Act is amended
5by changing Section 65 as follows:
 
6    (430 ILCS 66/65)
7    Sec. 65. Prohibited areas.
8    (a) A licensee under this Act shall not knowingly carry a
9firearm on or into:
10        (1) Any building, real property, and parking area under
11    the control of a public or private elementary or secondary
12    school.
13        (2) Any building, real property, and parking area under
14    the control of a pre-school or child care facility,
15    including any room or portion of a building under the
16    control of a pre-school or child care facility. Nothing in
17    this paragraph shall prevent the operator of a child care
18    facility in a family home from owning or possessing a
19    firearm in the home or license under this Act, if no child
20    under child care at the home is present in the home or the
21    firearm in the home is stored in a locked container when a
22    child under child care at the home is present in the home.
23        (3) Any building, parking area, or portion of a
24    building under the control of an officer of the executive

 

 

HB5146- 504 -LRB100 18631 SMS 33856 b

1    or legislative branch of government, provided that nothing
2    in this paragraph shall prohibit a licensee from carrying a
3    concealed firearm onto the real property, bikeway, or trail
4    in a park regulated by the Department of Natural Resources
5    or any other designated public hunting area or building
6    where firearm possession is permitted as established by the
7    Department of Natural Resources under Section 1.8 of the
8    Wildlife Code.
9        (4) Any building designated for matters before a
10    circuit court, appellate court, or the Supreme Court, or
11    any building or portion of a building under the control of
12    the Supreme Court.
13        (5) Any building or portion of a building under the
14    control of a unit of local government.
15        (6) Any building, real property, and parking area under
16    the control of an adult or juvenile detention or
17    correctional institution, prison, or jail.
18        (7) Any building, real property, and parking area under
19    the control of a public or private hospital or hospital
20    affiliate, mental health facility, or nursing home.
21        (8) Any bus, train, or form of transportation paid for
22    in whole or in part with public funds, and any building,
23    real property, and parking area under the control of a
24    public transportation facility paid for in whole or in part
25    with public funds.
26        (9) Any building, real property, and parking area under

 

 

HB5146- 505 -LRB100 18631 SMS 33856 b

1    the control of an establishment that serves alcohol on its
2    premises, if more than 50% of the establishment's gross
3    receipts within the prior 3 months is from the sale of
4    alcohol. The owner of an establishment who knowingly fails
5    to prohibit concealed firearms on its premises as provided
6    in this paragraph or who knowingly makes a false statement
7    or record to avoid the prohibition on concealed firearms
8    under this paragraph is subject to the penalty under
9    subsection (c-5) of Section 10-1 of the Liquor Control Act
10    of 1934.
11        (10) Any public gathering or special event conducted on
12    property open to the public that requires the issuance of a
13    permit from the unit of local government, provided this
14    prohibition shall not apply to a licensee who must walk
15    through a public gathering in order to access his or her
16    residence, place of business, or vehicle.
17        (11) Any building or real property that has been issued
18    a Special Event Retailer's license as defined in Section
19    1-3.17.1 of the Liquor Control Act during the time
20    designated for the sale of alcohol by the Special Event
21    Retailer's license, or a Special use permit license as
22    defined in subsection (q) of Section 5-1 of the Liquor
23    Control Act during the time designated for the sale of
24    alcohol by the Special use permit license.
25        (12) Any public playground.
26        (13) Any public park, athletic area, or athletic

 

 

HB5146- 506 -LRB100 18631 SMS 33856 b

1    facility under the control of a municipality or park
2    district, provided nothing in this Section shall prohibit a
3    licensee from carrying a concealed firearm while on a trail
4    or bikeway if only a portion of the trail or bikeway
5    includes a public park.
6        (14) Any real property under the control of the Cook
7    County Forest Preserve District.
8        (15) Any building, classroom, laboratory, medical
9    clinic, hospital, artistic venue, athletic venue,
10    entertainment venue, officially recognized
11    university-related organization property, whether owned or
12    leased, and any real property, including parking areas,
13    sidewalks, and common areas under the control of a public
14    or private community college, college, or university.
15        (16) Any building, real property, or parking area under
16    the control of a gaming facility licensed under the
17    Illinois Riverboat Gambling Act or the Illinois Horse
18    Racing Act of 1975, including an inter-track wagering
19    location licensee.
20        (17) Any stadium, arena, or the real property or
21    parking area under the control of a stadium, arena, or any
22    collegiate or professional sporting event.
23        (18) Any building, real property, or parking area under
24    the control of a public library.
25        (19) Any building, real property, or parking area under
26    the control of an airport.

 

 

HB5146- 507 -LRB100 18631 SMS 33856 b

1        (20) Any building, real property, or parking area under
2    the control of an amusement park.
3        (21) Any building, real property, or parking area under
4    the control of a zoo or museum.
5        (22) Any street, driveway, parking area, property,
6    building, or facility, owned, leased, controlled, or used
7    by a nuclear energy, storage, weapons, or development site
8    or facility regulated by the federal Nuclear Regulatory
9    Commission. The licensee shall not under any circumstance
10    store a firearm or ammunition in his or her vehicle or in a
11    compartment or container within a vehicle located anywhere
12    in or on the street, driveway, parking area, property,
13    building, or facility described in this paragraph.
14        (23) Any area where firearms are prohibited under
15    federal law.
16    (a-5) Nothing in this Act shall prohibit a public or
17private community college, college, or university from:
18        (1) prohibiting persons from carrying a firearm within
19    a vehicle owned, leased, or controlled by the college or
20    university;
21        (2) developing resolutions, regulations, or policies
22    regarding student, employee, or visitor misconduct and
23    discipline, including suspension and expulsion;
24        (3) developing resolutions, regulations, or policies
25    regarding the storage or maintenance of firearms, which
26    must include designated areas where persons can park

 

 

HB5146- 508 -LRB100 18631 SMS 33856 b

1    vehicles that carry firearms; and
2        (4) permitting the carrying or use of firearms for the
3    purpose of instruction and curriculum of officially
4    recognized programs, including but not limited to military
5    science and law enforcement training programs, or in any
6    designated area used for hunting purposes or target
7    shooting.
8    (a-10) The owner of private real property of any type may
9prohibit the carrying of concealed firearms on the property
10under his or her control. The owner must post a sign in
11accordance with subsection (d) of this Section indicating that
12firearms are prohibited on the property, unless the property is
13a private residence.
14    (b) Notwithstanding subsections (a), (a-5), and (a-10) of
15this Section except under paragraph (22) or (23) of subsection
16(a), any licensee prohibited from carrying a concealed firearm
17into the parking area of a prohibited location specified in
18subsection (a), (a-5), or (a-10) of this Section shall be
19permitted to carry a concealed firearm on or about his or her
20person within a vehicle into the parking area and may store a
21firearm or ammunition concealed in a case within a locked
22vehicle or locked container out of plain view within the
23vehicle in the parking area. A licensee may carry a concealed
24firearm in the immediate area surrounding his or her vehicle
25within a prohibited parking lot area only for the limited
26purpose of storing or retrieving a firearm within the vehicle's

 

 

HB5146- 509 -LRB100 18631 SMS 33856 b

1trunk. For purposes of this subsection, "case" includes a glove
2compartment or console that completely encloses the concealed
3firearm or ammunition, the trunk of the vehicle, or a firearm
4carrying box, shipping box, or other container.
5    (c) A licensee shall not be in violation of this Section
6while he or she is traveling along a public right of way that
7touches or crosses any of the premises under subsection (a),
8(a-5), or (a-10) of this Section if the concealed firearm is
9carried on his or her person in accordance with the provisions
10of this Act or is being transported in a vehicle by the
11licensee in accordance with all other applicable provisions of
12law.
13    (d) Signs stating that the carrying of firearms is
14prohibited shall be clearly and conspicuously posted at the
15entrance of a building, premises, or real property specified in
16this Section as a prohibited area, unless the building or
17premises is a private residence. Signs shall be of a uniform
18design as established by the Department and shall be 4 inches
19by 6 inches in size. The Department shall adopt rules for
20standardized signs to be used under this subsection.
21(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
 
22    Section 90-50. The Criminal Code of 2012 is amended by
23changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
24follows:
 

 

 

HB5146- 510 -LRB100 18631 SMS 33856 b

1    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
2    Sec. 28-1. Gambling.
3    (a) A person commits gambling when he or she:
4        (1) knowingly plays a game of chance or skill for money
5    or other thing of value, unless excepted in subsection (b)
6    of this Section;
7        (2) knowingly makes a wager upon the result of any
8    game, contest, or any political nomination, appointment or
9    election;
10        (3) knowingly operates, keeps, owns, uses, purchases,
11    exhibits, rents, sells, bargains for the sale or lease of,
12    manufactures or distributes any gambling device;
13        (4) contracts to have or give himself or herself or
14    another the option to buy or sell, or contracts to buy or
15    sell, at a future time, any grain or other commodity
16    whatsoever, or any stock or security of any company, where
17    it is at the time of making such contract intended by both
18    parties thereto that the contract to buy or sell, or the
19    option, whenever exercised, or the contract resulting
20    therefrom, shall be settled, not by the receipt or delivery
21    of such property, but by the payment only of differences in
22    prices thereof; however, the issuance, purchase, sale,
23    exercise, endorsement or guarantee, by or through a person
24    registered with the Secretary of State pursuant to Section
25    8 of the Illinois Securities Law of 1953, or by or through
26    a person exempt from such registration under said Section

 

 

HB5146- 511 -LRB100 18631 SMS 33856 b

1    8, of a put, call, or other option to buy or sell
2    securities which have been registered with the Secretary of
3    State or which are exempt from such registration under
4    Section 3 of the Illinois Securities Law of 1953 is not
5    gambling within the meaning of this paragraph (4);
6        (5) knowingly owns or possesses any book, instrument or
7    apparatus by means of which bets or wagers have been, or
8    are, recorded or registered, or knowingly possesses any
9    money which he has received in the course of a bet or
10    wager;
11        (6) knowingly sells pools upon the result of any game
12    or contest of skill or chance, political nomination,
13    appointment or election;
14        (7) knowingly sets up or promotes any lottery or sells,
15    offers to sell or transfers any ticket or share for any
16    lottery;
17        (8) knowingly sets up or promotes any policy game or
18    sells, offers to sell or knowingly possesses or transfers
19    any policy ticket, slip, record, document or other similar
20    device;
21        (9) knowingly drafts, prints or publishes any lottery
22    ticket or share, or any policy ticket, slip, record,
23    document or similar device, except for such activity
24    related to lotteries, bingo games and raffles authorized by
25    and conducted in accordance with the laws of Illinois or
26    any other state or foreign government;

 

 

HB5146- 512 -LRB100 18631 SMS 33856 b

1        (10) knowingly advertises any lottery or policy game,
2    except for such activity related to lotteries, bingo games
3    and raffles authorized by and conducted in accordance with
4    the laws of Illinois or any other state;
5        (11) knowingly transmits information as to wagers,
6    betting odds, or changes in betting odds by telephone,
7    telegraph, radio, semaphore or similar means; or knowingly
8    installs or maintains equipment for the transmission or
9    receipt of such information; except that nothing in this
10    subdivision (11) prohibits transmission or receipt of such
11    information for use in news reporting of sporting events or
12    contests; or
13        (12) knowingly establishes, maintains, or operates an
14    Internet site that permits a person to play a game of
15    chance or skill for money or other thing of value by means
16    of the Internet or to make a wager upon the result of any
17    game, contest, political nomination, appointment, or
18    election by means of the Internet. This item (12) does not
19    apply to activities referenced in items (6) and (6.1) of
20    subsection (b) of this Section.
21    (b) Participants in any of the following activities shall
22not be convicted of gambling:
23        (1) Agreements to compensate for loss caused by the
24    happening of chance including without limitation contracts
25    of indemnity or guaranty and life or health or accident
26    insurance.

 

 

HB5146- 513 -LRB100 18631 SMS 33856 b

1        (2) Offers of prizes, award or compensation to the
2    actual contestants in any bona fide contest for the
3    determination of skill, speed, strength or endurance or to
4    the owners of animals or vehicles entered in such contest.
5        (3) Pari-mutuel betting as authorized by the law of
6    this State.
7        (4) Manufacture of gambling devices, including the
8    acquisition of essential parts therefor and the assembly
9    thereof, for transportation in interstate or foreign
10    commerce to any place outside this State when such
11    transportation is not prohibited by any applicable Federal
12    law; or the manufacture, distribution, or possession of
13    video gaming terminals, as defined in the Video Gaming Act,
14    by manufacturers, distributors, and terminal operators
15    licensed to do so under the Video Gaming Act.
16        (5) The game commonly known as "bingo", when conducted
17    in accordance with the Bingo License and Tax Act.
18        (6) Lotteries when conducted by the State of Illinois
19    in accordance with the Illinois Lottery Law. This exemption
20    includes any activity conducted by the Department of
21    Revenue to sell lottery tickets pursuant to the provisions
22    of the Illinois Lottery Law and its rules.
23        (6.1) The purchase of lottery tickets through the
24    Internet for a lottery conducted by the State of Illinois
25    under the program established in Section 7.12 of the
26    Illinois Lottery Law.

 

 

HB5146- 514 -LRB100 18631 SMS 33856 b

1        (7) Possession of an antique slot machine that is
2    neither used nor intended to be used in the operation or
3    promotion of any unlawful gambling activity or enterprise.
4    For the purpose of this subparagraph (b)(7), an antique
5    slot machine is one manufactured 25 years ago or earlier.
6        (8) Raffles and poker runs when conducted in accordance
7    with the Raffles and Poker Runs Act.
8        (9) Charitable games when conducted in accordance with
9    the Charitable Games Act.
10        (10) Pull tabs and jar games when conducted under the
11    Illinois Pull Tabs and Jar Games Act.
12        (11) Gambling games conducted on riverboats when
13    authorized by the Illinois Riverboat Gambling Act.
14        (12) Video gaming terminal games at a licensed
15    establishment, licensed truck stop establishment, licensed
16    fraternal establishment, or licensed veterans
17    establishment when conducted in accordance with the Video
18    Gaming Act.
19        (13) Games of skill or chance where money or other
20    things of value can be won but no payment or purchase is
21    required to participate.
22        (14) Savings promotion raffles authorized under
23    Section 5g of the Illinois Banking Act, Section 7008 of the
24    Savings Bank Act, Section 42.7 of the Illinois Credit Union
25    Act, Section 5136B of the National Bank Act (12 U.S.C.
26    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.

 

 

HB5146- 515 -LRB100 18631 SMS 33856 b

1    1463).
2    (c) Sentence.
3    Gambling is a Class A misdemeanor. A second or subsequent
4conviction under subsections (a)(3) through (a)(12), is a Class
54 felony.
6    (d) Circumstantial evidence.
7    In prosecutions under this Section circumstantial evidence
8shall have the same validity and weight as in any criminal
9prosecution.
10(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
11    (720 ILCS 5/28-1.1)   (from Ch. 38, par. 28-1.1)
12    Sec. 28-1.1. Syndicated gambling.
13    (a) Declaration of Purpose. Recognizing the close
14relationship between professional gambling and other organized
15crime, it is declared to be the policy of the legislature to
16restrain persons from engaging in the business of gambling for
17profit in this State. This Section shall be liberally construed
18and administered with a view to carrying out this policy.
19    (b) A person commits syndicated gambling when he or she
20operates a "policy game" or engages in the business of
21bookmaking.
22    (c) A person "operates a policy game" when he or she
23knowingly uses any premises or property for the purpose of
24receiving or knowingly does receive from what is commonly
25called "policy":

 

 

HB5146- 516 -LRB100 18631 SMS 33856 b

1        (1) money from a person other than the bettor or player
2    whose bets or plays are represented by the money; or
3        (2) written "policy game" records, made or used over
4    any period of time, from a person other than the bettor or
5    player whose bets or plays are represented by the written
6    record.
7    (d) A person engages in bookmaking when he or she knowingly
8receives or accepts more than five bets or wagers upon the
9result of any trials or contests of skill, speed or power of
10endurance or upon any lot, chance, casualty, unknown or
11contingent event whatsoever, which bets or wagers shall be of
12such size that the total of the amounts of money paid or
13promised to be paid to the bookmaker on account thereof shall
14exceed $2,000. Bookmaking is the receiving or accepting of bets
15or wagers regardless of the form or manner in which the
16bookmaker records them.
17    (e) Participants in any of the following activities shall
18not be convicted of syndicated gambling:
19        (1) Agreements to compensate for loss caused by the
20    happening of chance including without limitation contracts
21    of indemnity or guaranty and life or health or accident
22    insurance;
23        (2) Offers of prizes, award or compensation to the
24    actual contestants in any bona fide contest for the
25    determination of skill, speed, strength or endurance or to
26    the owners of animals or vehicles entered in the contest;

 

 

HB5146- 517 -LRB100 18631 SMS 33856 b

1        (3) Pari-mutuel betting as authorized by law of this
2    State;
3        (4) Manufacture of gambling devices, including the
4    acquisition of essential parts therefor and the assembly
5    thereof, for transportation in interstate or foreign
6    commerce to any place outside this State when the
7    transportation is not prohibited by any applicable Federal
8    law;
9        (5) Raffles and poker runs when conducted in accordance
10    with the Raffles and Poker Runs Act;
11        (6) Gambling games conducted on riverboats, in
12    casinos, or at electronic gaming facilities when
13    authorized by the Illinois Riverboat Gambling Act;
14        (7) Video gaming terminal games at a licensed
15    establishment, licensed truck stop establishment, licensed
16    fraternal establishment, or licensed veterans
17    establishment when conducted in accordance with the Video
18    Gaming Act; and
19        (8) Savings promotion raffles authorized under Section
20    5g of the Illinois Banking Act, Section 7008 of the Savings
21    Bank Act, Section 42.7 of the Illinois Credit Union Act,
22    Section 5136B of the National Bank Act (12 U.S.C. 25a), or
23    Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
24    (f) Sentence. Syndicated gambling is a Class 3 felony.
25(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 

 

 

HB5146- 518 -LRB100 18631 SMS 33856 b

1    (720 ILCS 5/28-3)   (from Ch. 38, par. 28-3)
2    Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
3any real estate, vehicle, boat or any other property whatsoever
4used for the purposes of gambling other than gambling conducted
5in the manner authorized by the Illinois Riverboat Gambling Act
6or the Video Gaming Act. Any person who knowingly permits any
7premises or property owned or occupied by him or under his
8control to be used as a gambling place commits a Class A
9misdemeanor. Each subsequent offense is a Class 4 felony. When
10any premises is determined by the circuit court to be a
11gambling place:
12    (a) Such premises is a public nuisance and may be proceeded
13against as such, and
14    (b) All licenses, permits or certificates issued by the
15State of Illinois or any subdivision or public agency thereof
16authorizing the serving of food or liquor on such premises
17shall be void; and no license, permit or certificate so
18cancelled shall be reissued for such premises for a period of
1960 days thereafter; nor shall any person convicted of keeping a
20gambling place be reissued such license for one year from his
21conviction and, after a second conviction of keeping a gambling
22place, any such person shall not be reissued such license, and
23    (c) Such premises of any person who knowingly permits
24thereon a violation of any Section of this Article shall be
25held liable for, and may be sold to pay any unsatisfied
26judgment that may be recovered and any unsatisfied fine that

 

 

HB5146- 519 -LRB100 18631 SMS 33856 b

1may be levied under any Section of this Article.
2(Source: P.A. 96-34, eff. 7-13-09.)
 
3    (720 ILCS 5/28-5)  (from Ch. 38, par. 28-5)
4    (Text of Section before amendment by P.A. 100-512)
5    Sec. 28-5. Seizure of gambling devices and gambling funds.
6    (a) Every device designed for gambling which is incapable
7of lawful use or every device used unlawfully for gambling
8shall be considered a "gambling device", and shall be subject
9to seizure, confiscation and destruction by the Department of
10State Police or by any municipal, or other local authority,
11within whose jurisdiction the same may be found. As used in
12this Section, a "gambling device" includes any slot machine,
13and includes any machine or device constructed for the
14reception of money or other thing of value and so constructed
15as to return, or to cause someone to return, on chance to the
16player thereof money, property or a right to receive money or
17property. With the exception of any device designed for
18gambling which is incapable of lawful use, no gambling device
19shall be forfeited or destroyed unless an individual with a
20property interest in said device knows of the unlawful use of
21the device.
22    (b) Every gambling device shall be seized and forfeited to
23the county wherein such seizure occurs. Any money or other
24thing of value integrally related to acts of gambling shall be
25seized and forfeited to the county wherein such seizure occurs.

 

 

HB5146- 520 -LRB100 18631 SMS 33856 b

1    (c) If, within 60 days after any seizure pursuant to
2subparagraph (b) of this Section, a person having any property
3interest in the seized property is charged with an offense, the
4court which renders judgment upon such charge shall, within 30
5days after such judgment, conduct a forfeiture hearing to
6determine whether such property was a gambling device at the
7time of seizure. Such hearing shall be commenced by a written
8petition by the State, including material allegations of fact,
9the name and address of every person determined by the State to
10have any property interest in the seized property, a
11representation that written notice of the date, time and place
12of such hearing has been mailed to every such person by
13certified mail at least 10 days before such date, and a request
14for forfeiture. Every such person may appear as a party and
15present evidence at such hearing. The quantum of proof required
16shall be a preponderance of the evidence, and the burden of
17proof shall be on the State. If the court determines that the
18seized property was a gambling device at the time of seizure,
19an order of forfeiture and disposition of the seized property
20shall be entered: a gambling device shall be received by the
21State's Attorney, who shall effect its destruction, except that
22valuable parts thereof may be liquidated and the resultant
23money shall be deposited in the general fund of the county
24wherein such seizure occurred; money and other things of value
25shall be received by the State's Attorney and, upon
26liquidation, shall be deposited in the general fund of the

 

 

HB5146- 521 -LRB100 18631 SMS 33856 b

1county wherein such seizure occurred. However, in the event
2that a defendant raises the defense that the seized slot
3machine is an antique slot machine described in subparagraph
4(b)(7) of Section 28-1 of this Code and therefore he is exempt
5from the charge of a gambling activity participant, the seized
6antique slot machine shall not be destroyed or otherwise
7altered until a final determination is made by the Court as to
8whether it is such an antique slot machine. Upon a final
9determination by the Court of this question in favor of the
10defendant, such slot machine shall be immediately returned to
11the defendant. Such order of forfeiture and disposition shall,
12for the purposes of appeal, be a final order and judgment in a
13civil proceeding.
14    (d) If a seizure pursuant to subparagraph (b) of this
15Section is not followed by a charge pursuant to subparagraph
16(c) of this Section, or if the prosecution of such charge is
17permanently terminated or indefinitely discontinued without
18any judgment of conviction or acquittal (1) the State's
19Attorney shall commence an in rem proceeding for the forfeiture
20and destruction of a gambling device, or for the forfeiture and
21deposit in the general fund of the county of any seized money
22or other things of value, or both, in the circuit court and (2)
23any person having any property interest in such seized gambling
24device, money or other thing of value may commence separate
25civil proceedings in the manner provided by law.
26    (e) Any gambling device displayed for sale to a riverboat

 

 

HB5146- 522 -LRB100 18631 SMS 33856 b

1gambling operation, casino gambling operation, or electronic
2gaming facility or used to train occupational licensees of a
3riverboat gambling operation, casino gambling operation, or
4electronic gaming facility as authorized under the Illinois
5Riverboat Gambling Act is exempt from seizure under this
6Section.
7    (f) Any gambling equipment, devices and supplies provided
8by a licensed supplier in accordance with the Illinois
9Riverboat Gambling Act which are removed from a the riverboat,
10casino, or electronic gaming facility for repair are exempt
11from seizure under this Section.
12    (g) The following video gaming terminals are exempt from
13seizure under this Section:
14        (1) Video gaming terminals for sale to a licensed
15    distributor or operator under the Video Gaming Act.
16        (2) Video gaming terminals used to train licensed
17    technicians or licensed terminal handlers.
18        (3) Video gaming terminals that are removed from a
19    licensed establishment, licensed truck stop establishment,
20    licensed fraternal establishment, or licensed veterans
21    establishment for repair.
22(Source: P.A. 98-31, eff. 6-24-13.)
 
23    (Text of Section after amendment by P.A. 100-512)
24    Sec. 28-5. Seizure of gambling devices and gambling funds.
25    (a) Every device designed for gambling which is incapable

 

 

HB5146- 523 -LRB100 18631 SMS 33856 b

1of lawful use or every device used unlawfully for gambling
2shall be considered a "gambling device", and shall be subject
3to seizure, confiscation and destruction by the Department of
4State Police or by any municipal, or other local authority,
5within whose jurisdiction the same may be found. As used in
6this Section, a "gambling device" includes any slot machine,
7and includes any machine or device constructed for the
8reception of money or other thing of value and so constructed
9as to return, or to cause someone to return, on chance to the
10player thereof money, property or a right to receive money or
11property. With the exception of any device designed for
12gambling which is incapable of lawful use, no gambling device
13shall be forfeited or destroyed unless an individual with a
14property interest in said device knows of the unlawful use of
15the device.
16    (b) Every gambling device shall be seized and forfeited to
17the county wherein such seizure occurs. Any money or other
18thing of value integrally related to acts of gambling shall be
19seized and forfeited to the county wherein such seizure occurs.
20    (c) If, within 60 days after any seizure pursuant to
21subparagraph (b) of this Section, a person having any property
22interest in the seized property is charged with an offense, the
23court which renders judgment upon such charge shall, within 30
24days after such judgment, conduct a forfeiture hearing to
25determine whether such property was a gambling device at the
26time of seizure. Such hearing shall be commenced by a written

 

 

HB5146- 524 -LRB100 18631 SMS 33856 b

1petition by the State, including material allegations of fact,
2the name and address of every person determined by the State to
3have any property interest in the seized property, a
4representation that written notice of the date, time and place
5of such hearing has been mailed to every such person by
6certified mail at least 10 days before such date, and a request
7for forfeiture. Every such person may appear as a party and
8present evidence at such hearing. The quantum of proof required
9shall be a preponderance of the evidence, and the burden of
10proof shall be on the State. If the court determines that the
11seized property was a gambling device at the time of seizure,
12an order of forfeiture and disposition of the seized property
13shall be entered: a gambling device shall be received by the
14State's Attorney, who shall effect its destruction, except that
15valuable parts thereof may be liquidated and the resultant
16money shall be deposited in the general fund of the county
17wherein such seizure occurred; money and other things of value
18shall be received by the State's Attorney and, upon
19liquidation, shall be deposited in the general fund of the
20county wherein such seizure occurred. However, in the event
21that a defendant raises the defense that the seized slot
22machine is an antique slot machine described in subparagraph
23(b) (7) of Section 28-1 of this Code and therefore he is exempt
24from the charge of a gambling activity participant, the seized
25antique slot machine shall not be destroyed or otherwise
26altered until a final determination is made by the Court as to

 

 

HB5146- 525 -LRB100 18631 SMS 33856 b

1whether it is such an antique slot machine. Upon a final
2determination by the Court of this question in favor of the
3defendant, such slot machine shall be immediately returned to
4the defendant. Such order of forfeiture and disposition shall,
5for the purposes of appeal, be a final order and judgment in a
6civil proceeding.
7    (d) If a seizure pursuant to subparagraph (b) of this
8Section is not followed by a charge pursuant to subparagraph
9(c) of this Section, or if the prosecution of such charge is
10permanently terminated or indefinitely discontinued without
11any judgment of conviction or acquittal (1) the State's
12Attorney shall commence an in rem proceeding for the forfeiture
13and destruction of a gambling device, or for the forfeiture and
14deposit in the general fund of the county of any seized money
15or other things of value, or both, in the circuit court and (2)
16any person having any property interest in such seized gambling
17device, money or other thing of value may commence separate
18civil proceedings in the manner provided by law.
19    (e) Any gambling device displayed for sale to a riverboat
20gambling operation, casino gambling operation, or electronic
21gaming facility or used to train occupational licensees of a
22riverboat gambling operation, casino gambling operation, or
23electronic gaming facility as authorized under the Illinois
24Riverboat Gambling Act is exempt from seizure under this
25Section.
26    (f) Any gambling equipment, devices and supplies provided

 

 

HB5146- 526 -LRB100 18631 SMS 33856 b

1by a licensed supplier in accordance with the Illinois
2Riverboat Gambling Act which are removed from a the riverboat,
3casino, or electronic gaming facility for repair are exempt
4from seizure under this Section.
5    (g) The following video gaming terminals are exempt from
6seizure under this Section:
7        (1) Video gaming terminals for sale to a licensed
8    distributor or operator under the Video Gaming Act.
9        (2) Video gaming terminals used to train licensed
10    technicians or licensed terminal handlers.
11        (3) Video gaming terminals that are removed from a
12    licensed establishment, licensed truck stop establishment,
13    licensed fraternal establishment, or licensed veterans
14    establishment for repair.
15    (h) Property seized or forfeited under this Section is
16subject to reporting under the Seizure and Forfeiture Reporting
17Act.
18(Source: P.A. 100-512, eff. 7-1-18.)
 
19    (720 ILCS 5/28-7)   (from Ch. 38, par. 28-7)
20    Sec. 28-7. Gambling contracts void.
21    (a) All promises, notes, bills, bonds, covenants,
22contracts, agreements, judgments, mortgages, or other
23securities or conveyances made, given, granted, drawn, or
24entered into, or executed by any person whatsoever, where the
25whole or any part of the consideration thereof is for any money

 

 

HB5146- 527 -LRB100 18631 SMS 33856 b

1or thing of value, won or obtained in violation of any Section
2of this Article are null and void.
3    (b) Any obligation void under this Section may be set aside
4and vacated by any court of competent jurisdiction, upon a
5complaint filed for that purpose, by the person so granting,
6giving, entering into, or executing the same, or by his
7executors or administrators, or by any creditor, heir, legatee,
8purchaser or other person interested therein; or if a judgment,
9the same may be set aside on motion of any person stated above,
10on due notice thereof given.
11    (c) No assignment of any obligation void under this Section
12may in any manner affect the defense of the person giving,
13granting, drawing, entering into or executing such obligation,
14or the remedies of any person interested therein.
15    (d) This Section shall not prevent a licensed owner of a
16riverboat gambling operation, casino gambling operation, or an
17electronic gaming licensee under the Illinois Gambling Act and
18the Illinois Horse Racing Act of 1975 from instituting a cause
19of action to collect any amount due and owing under an
20extension of credit to a riverboat gambling patron as
21authorized under Section 11.1 of the Illinois Riverboat
22Gambling Act.
23(Source: P.A. 87-826.)
 
24    Section 90-55. The Eminent Domain Act is amended by adding
25Section 15-5-48 as follows:
 

 

 

HB5146- 528 -LRB100 18631 SMS 33856 b

1    (735 ILCS 30/15-5-48 new)
2    Sec. 15-5-48. Eminent domain powers in new Acts. The
3following provisions of law may include express grants of the
4power to acquire property by condemnation or eminent domain:
 
5    Chicago Casino Development Authority Act; City of Chicago; for
6    the purposes of the Act.
 
7    Section 90-60. The Payday Loan Reform Act is amended by
8changing Section 3-5 as follows:
 
9    (815 ILCS 122/3-5)
10    Sec. 3-5. Licensure.
11    (a) A license to make a payday loan shall state the
12address, including city and state, at which the business is to
13be conducted and shall state fully the name of the licensee.
14The license shall be conspicuously posted in the place of
15business of the licensee and shall not be transferable or
16assignable.
17    (b) An application for a license shall be in writing and in
18a form prescribed by the Secretary. The Secretary may not issue
19a payday loan license unless and until the following findings
20are made:
21        (1) that the financial responsibility, experience,
22    character, and general fitness of the applicant are such as

 

 

HB5146- 529 -LRB100 18631 SMS 33856 b

1    to command the confidence of the public and to warrant the
2    belief that the business will be operated lawfully and
3    fairly and within the provisions and purposes of this Act;
4    and
5        (2) that the applicant has submitted such other
6    information as the Secretary may deem necessary.
7    (c) A license shall be issued for no longer than one year,
8and no renewal of a license may be provided if a licensee has
9substantially violated this Act and has not cured the violation
10to the satisfaction of the Department.
11    (d) A licensee shall appoint, in writing, the Secretary as
12attorney-in-fact upon whom all lawful process against the
13licensee may be served with the same legal force and validity
14as if served on the licensee. A copy of the written
15appointment, duly certified, shall be filed in the office of
16the Secretary, and a copy thereof certified by the Secretary
17shall be sufficient evidence to subject a licensee to
18jurisdiction in a court of law. This appointment shall remain
19in effect while any liability remains outstanding in this State
20against the licensee. When summons is served upon the Secretary
21as attorney-in-fact for a licensee, the Secretary shall
22immediately notify the licensee by registered mail, enclosing
23the summons and specifying the hour and day of service.
24    (e) A licensee must pay an annual fee of $1,000. In
25addition to the license fee, the reasonable expense of any
26examination or hearing by the Secretary under any provisions of

 

 

HB5146- 530 -LRB100 18631 SMS 33856 b

1this Act shall be borne by the licensee. If a licensee fails to
2renew its license by December 31, its license shall
3automatically expire; however, the Secretary, in his or her
4discretion, may reinstate an expired license upon:
5        (1) payment of the annual fee within 30 days of the
6    date of expiration; and
7        (2) proof of good cause for failure to renew.
8    (f) Not more than one place of business shall be maintained
9under the same license, but the Secretary may issue more than
10one license to the same licensee upon compliance with all the
11provisions of this Act governing issuance of a single license.
12The location, except those locations already in existence as of
13June 1, 2005, may not be within one mile of a horse race track
14subject to the Illinois Horse Racing Act of 1975, within one
15mile of a facility at which gambling is conducted under the
16Illinois Riverboat Gambling Act, within one mile of the
17location at which a riverboat subject to the Illinois Riverboat
18Gambling Act docks, or within one mile of any State of Illinois
19or United States military base or naval installation.
20    (g) No licensee shall conduct the business of making loans
21under this Act within any office, suite, room, or place of
22business in which (1) any loans are offered or made under the
23Consumer Installment Loan Act other than title secured loans as
24defined in subsection (a) of Section 15 of the Consumer
25Installment Loan Act and governed by Title 38, Section 110.330
26of the Illinois Administrative Code or (2) any other business

 

 

HB5146- 531 -LRB100 18631 SMS 33856 b

1is solicited or engaged in unless the other business is
2licensed by the Department or, in the opinion of the Secretary,
3the other business would not be contrary to the best interests
4of consumers and is authorized by the Secretary in writing.
5    (g-5) Notwithstanding subsection (g) of this Section, a
6licensee may obtain a license under the Consumer Installment
7Loan Act (CILA) for the exclusive purpose and use of making
8title secured loans, as defined in subsection (a) of Section 15
9of CILA and governed by Title 38, Section 110.300 of the
10Illinois Administrative Code. A licensee may continue to
11service Consumer Installment Loan Act loans that were
12outstanding as of the effective date of this amendatory Act of
13the 96th General Assembly.
14    (h) The Secretary shall maintain a list of licensees that
15shall be available to interested consumers and lenders and the
16public. The Secretary shall maintain a toll-free number whereby
17consumers may obtain information about licensees. The
18Secretary shall also establish a complaint process under which
19an aggrieved consumer may file a complaint against a licensee
20or non-licensee who violates any provision of this Act.
21(Source: P.A. 96-936, eff. 3-21-11.)
 
22    Section 90-65. The Travel Promotion Consumer Protection
23Act is amended by changing Section 2 as follows:
 
24    (815 ILCS 420/2)  (from Ch. 121 1/2, par. 1852)

 

 

HB5146- 532 -LRB100 18631 SMS 33856 b

1    Sec. 2. Definitions.
2    (a) "Travel promoter" means a person, including a tour
3operator, who sells, provides, furnishes, contracts for,
4arranges or advertises that he or she will arrange wholesale or
5retail transportation by air, land, sea or navigable stream,
6either separately or in conjunction with other services.
7"Travel promoter" does not include (1) an air carrier; (2) a
8sea carrier; (3) an officially appointed agent of an air
9carrier who is a member in good standing of the Airline
10Reporting Corporation; (4) a travel promoter who has in force
11$1,000,000 or more of liability insurance coverage for
12professional errors and omissions and a surety bond or
13equivalent surety in the amount of $100,000 or more for the
14benefit of consumers in the event of a bankruptcy on the part
15of the travel promoter; or (5) a riverboat subject to
16regulation under the Illinois Riverboat Gambling Act.
17    (b) "Advertise" means to make any representation in the
18solicitation of passengers and includes communication with
19other members of the same partnership, corporation, joint
20venture, association, organization, group or other entity.
21    (c) "Passenger" means a person on whose behalf money or
22other consideration has been given or is to be given to
23another, including another member of the same partnership,
24corporation, joint venture, association, organization, group
25or other entity, for travel.
26    (d) "Ticket or voucher" means a writing or combination of

 

 

HB5146- 533 -LRB100 18631 SMS 33856 b

1writings which is itself good and sufficient to obtain
2transportation and other services for which the passenger has
3contracted.
4(Source: P.A. 91-357, eff. 7-29-99.)
 
5    (30 ILCS 105/5.490 rep.)
6    Section 90-70. The State Finance Act is amended by
7repealing Section 5.490.
 
8    (230 ILCS 5/54 rep.)
9    Section 90-75. The Illinois Horse Racing Act of 1975 is
10amended by repealing Section 54.
 
11
ARTICLE 99.

 
12    Section 99-95. No acceleration or delay. Where this Act
13makes changes in a statute that is represented in this Act by
14text that is not yet or no longer in effect (for example, a
15Section represented by multiple versions), the use of that text
16does not accelerate or delay the taking effect of (i) the
17changes made by this Act or (ii) provisions derived from any
18other Public Act.
 
19    Section 99-97. Severability. The provisions of this Act are
20severable under Section 1.31 of the Statute on Statutes.
 
21    Section 99-99. Effective date. This Act takes effect upon

 

 

HB5146- 534 -LRB100 18631 SMS 33856 b

1becoming law.

 

 

HB5146- 535 -LRB100 18631 SMS 33856 b

1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    5 ILCS 430/5-45
5    20 ILCS 301/5-20
6    20 ILCS 605/605-530 new
7    20 ILCS 605/605-535 new
8    20 ILCS 1605/9.1
9    20 ILCS 2505/2505-305was 20 ILCS 2505/39b15.1
10    30 ILCS 5/3-1from Ch. 15, par. 303-1
11    30 ILCS 105/5.886 new
12    30 ILCS 105/5.887 new
13    30 ILCS 105/5.888 new
14    30 ILCS 105/6z-45
15    30 ILCS 105/6z-105 new
16    35 ILCS 5/201from Ch. 120, par. 2-201
17    35 ILCS 5/303from Ch. 120, par. 3-303
18    35 ILCS 5/304from Ch. 120, par. 3-304
19    35 ILCS 5/710from Ch. 120, par. 7-710
20    35 ILCS 200/15-144 new
21    65 ILCS 5/8-10-2.6 new
22    70 ILCS 1825/5.1from Ch. 19, par. 255.1
23    205 ILCS 670/12.5
24    230 ILCS 5/1.2
25    230 ILCS 5/3.11from Ch. 8, par. 37-3.11

 

 

HB5146- 536 -LRB100 18631 SMS 33856 b

1    230 ILCS 5/3.12from Ch. 8, par. 37-3.12
2    230 ILCS 5/3.31 new
3    230 ILCS 5/3.32 new
4    230 ILCS 5/3.33 new
5    230 ILCS 5/3.35 new
6    230 ILCS 5/3.36 new
7    230 ILCS 5/6from Ch. 8, par. 37-6
8    230 ILCS 5/9from Ch. 8, par. 37-9
9    230 ILCS 5/15from Ch. 8, par. 37-15
10    230 ILCS 5/18from Ch. 8, par. 37-18
11    230 ILCS 5/19from Ch. 8, par. 37-19
12    230 ILCS 5/20from Ch. 8, par. 37-20
13    230 ILCS 5/21from Ch. 8, par. 37-21
14    230 ILCS 5/24from Ch. 8, par. 37-24
15    230 ILCS 5/25from Ch. 8, par. 37-25
16    230 ILCS 5/26from Ch. 8, par. 37-26
17    230 ILCS 5/26.8
18    230 ILCS 5/26.9
19    230 ILCS 5/27from Ch. 8, par. 37-27
20    230 ILCS 5/30from Ch. 8, par. 37-30
21    230 ILCS 5/30.5
22    230 ILCS 5/31from Ch. 8, par. 37-31
23    230 ILCS 5/32.1
24    230 ILCS 5/34.3 new
25    230 ILCS 5/36from Ch. 8, par. 37-36
26    230 ILCS 5/40from Ch. 8, par. 37-40

 

 

HB5146- 537 -LRB100 18631 SMS 33856 b

1    230 ILCS 5/54.75
2    230 ILCS 5/56 new
3    230 ILCS 10/1from Ch. 120, par. 2401
4    230 ILCS 10/2from Ch. 120, par. 2402
5    230 ILCS 10/3from Ch. 120, par. 2403
6    230 ILCS 10/4from Ch. 120, par. 2404
7    230 ILCS 10/5from Ch. 120, par. 2405
8    230 ILCS 10/5.1from Ch. 120, par. 2405.1
9    230 ILCS 10/5.3 new
10    230 ILCS 10/6from Ch. 120, par. 2406
11    230 ILCS 10/7from Ch. 120, par. 2407
12    230 ILCS 10/7.3
13    230 ILCS 10/7.5
14    230 ILCS 10/7.7 new
15    230 ILCS 10/7.8 new
16    230 ILCS 10/7.9 new
17    230 ILCS 10/7.10 new
18    230 ILCS 10/7.11 new
19    230 ILCS 10/7.12 new
20    230 ILCS 10/7.13 new
21    230 ILCS 10/8from Ch. 120, par. 2408
22    230 ILCS 10/9from Ch. 120, par. 2409
23    230 ILCS 10/11from Ch. 120, par. 2411
24    230 ILCS 10/11.1from Ch. 120, par. 2411.1
25    230 ILCS 10/12from Ch. 120, par. 2412
26    230 ILCS 10/13from Ch. 120, par. 2413

 

 

HB5146- 538 -LRB100 18631 SMS 33856 b

1    230 ILCS 10/14from Ch. 120, par. 2414
2    230 ILCS 10/15from Ch. 120, par. 2415
3    230 ILCS 10/16from Ch. 120, par. 2416
4    230 ILCS 10/17from Ch. 120, par. 2417
5    230 ILCS 10/17.1from Ch. 120, par. 2417.1
6    230 ILCS 10/18from Ch. 120, par. 2418
7    230 ILCS 10/18.1
8    230 ILCS 10/19from Ch. 120, par. 2419
9    230 ILCS 10/20from Ch. 120, par. 2420
10    230 ILCS 10/21from Ch. 120, par. 2421
11    230 ILCS 10/23from Ch. 120, par. 2423
12    230 ILCS 10/24
13    230 ILCS 10/25 new
14    230 ILCS 40/5
15    230 ILCS 40/20
16    230 ILCS 40/25
17    230 ILCS 40/45
18    230 ILCS 40/79
19    230 ILCS 40/80
20    230 ILCS 40/90 new
21    235 ILCS 5/5-1from Ch. 43, par. 115
22    235 ILCS 5/6-30from Ch. 43, par. 144f
23    305 ILCS 5/10-17.15
24    430 ILCS 66/65
25    720 ILCS 5/28-1from Ch. 38, par. 28-1
26    720 ILCS 5/28-1.1from Ch. 38, par. 28-1.1

 

 

HB5146- 539 -LRB100 18631 SMS 33856 b

1    720 ILCS 5/28-3from Ch. 38, par. 28-3
2    720 ILCS 5/28-5from Ch. 38, par. 28-5
3    720 ILCS 5/28-7from Ch. 38, par. 28-7
4    735 ILCS 30/15-5-48 new
5    815 ILCS 122/3-5
6    815 ILCS 420/2from Ch. 121 1/2, par. 1852
7    30 ILCS 105/5.490 rep.
8    230 ILCS 5/54 rep.