100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0007

 

Introduced 1/11/2017, by Sen. Terry Link

 

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 Lottery Law. Establishes the Division of Internet Gaming within the Department of the Lottery for the purpose of administering, regulating, and enforcing a system of Internet gaming (and makes conforming changes in other Acts). 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, but does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, and 13 of the 100th General Assembly become law.


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

 

 

A BILL FOR

 

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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
11at which lawful gambling is authorized and licensed as provided
12in the Illinois Gambling Act.
13    "Casino Board" means the board appointed pursuant to this
14Act to govern and control the Authority.
15    "Casino management contract" means a legally binding
16agreement between the Authority and a casino operator licensee
17to operate or manage a casino.
18    "Casino operator licensee" means any person or entity
19selected by the Authority and approved and licensed by the
20Gaming Board to manage and operate a casino within the City of
21Chicago pursuant to a casino management contract.
22    "City" means the City of Chicago.
23    "Entity" means a corporation, joint venture, partnership,
24limited liability company, trust, or unincorporated
25association.

 

 

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

 

 

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

 

 

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1appointee as the Gaming Board would apply to an owners licensee
2key person under the Gaming Board's adopted rules), then the
3Gaming Board shall provide a written notice of such
4determination to the appointee and the Corporation Counsel of
5the City. The Mayor may then appoint a new candidate. If no
6such notice is delivered with respect to a particular
7appointee, then commencing on the 31st day following the date
8of the appointee's submission of his or her application to the
9Gaming Board, the appointee shall be deemed an acting member of
10the Casino Board and shall participate as a Casino Board
11member.
12    Each appointee shall be subject to a full background
13investigation and final approval by the Gaming Board prior to
14the opening of the casino. The Gaming Board shall complete its
15full background investigation of the Casino Board appointee
16within 3 months after the date of the appointee's submission of
17his or her application to the Gaming Board. If the Gaming Board
18does not complete its background investigation within the
193-month period, then the Gaming Board shall give a written
20explanation to the appointee, as well as the Mayor, the
21Governor, the President of the Senate, and the Speaker of the
22House of Representatives, as to why it has not reached a final
23determination and set forth a reasonable time when such
24determination shall be made.
25    (b) Casino Board members shall receive $300 for each day
26the Authority meets and shall be entitled to reimbursement of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1construction experts and personnel, superintendents, managers,
2and other personnel appointed or employed pursuant to this Act
3shall report to the executive director. In addition to any
4other duties set forth in this Act, the executive director
5shall do or shall delegate to an employee or agent of the
6Authority to do all of the following:
7        (1) Direct and supervise the administrative affairs
8    and activities of the Authority in accordance with its
9    rules, regulations, and policies.
10        (2) Attend meetings of the Casino Board.
11        (3) Keep minutes of all proceedings of the Casino
12    Board.
13        (4) Approve all accounts for salaries, per diem
14    payments, and allowable expenses of the Casino Board and
15    its employees and consultants.
16        (5) Report and make recommendations to the Casino Board
17    concerning the terms and conditions of any casino
18    management contract.
19        (6) Perform any other duty that the Casino Board
20    requires for carrying out the provisions of this Act.
21        (7) Devote his or her full time to the duties of the
22    office and not hold any other office or employment.
23    (c) The Casino Board may select a secretary-treasurer and
24other officers to hold office at the pleasure of the Casino
25Board. 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.
26        (8) Pursuant to Section 1-115 of this Act, own,

 

 

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

 

 

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

 

 

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1    the person or entity.
2        (14) Issue bonds as provided for under this Act.
3        (15) Receive and accept from any source, private or
4    public, contributions, gifts, or grants of money or
5    property to the Authority.
6        (16) Provide for the insurance of any property,
7    operations, officers, members, agents, or employees of the
8    Authority against any risk or hazard, to self-insure or
9    participate in joint self-insurance pools or entities to
10    insure against such risk or hazard, and to provide for the
11    indemnification of its officers, members, employees,
12    contractors, or agents against any and all risks.
13        (17) Exercise all the corporate powers granted
14    Illinois corporations under the Business Corporation Act
15    of 1983, except to the extent that powers are inconsistent
16    with those of a body politic and municipal corporation.
17        (18) Do all things necessary or convenient to carry out
18    the powers granted by this Act.
19    (b) The Casino Board shall comply with all applicable legal
20requirements imposed on other owners licensees to conduct all
21background investigations required under the Illinois Gambling
22Act and the rules of the Gaming Board. This requirement shall
23also extend to senior legal, financial, and administrative
24staff of the Authority.
 
25    Section 1-32. Ethical conduct.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Public disclosure of the written summary provided to the
2Casino Board and the Gaming Board shall be subject to the
3exemptions provided under Section 7 of the Freedom of
4Information Act.
5    This subsection (n) shall not apply to communications
6regarding traffic, law enforcement, security, environmental
7issues, City services, transportation, or other routine
8matters concerning the ordinary operations of the casino.
9    (o) For purposes of this Section:
10    "Ordinary operations" means operations relating to the
11casino facility other than the conduct of gambling activities.
12    "Routine matters" includes the application for, issuance,
13renewal, and other processes associated with City permits and
14licenses.
15    "Employee of the City" means only those employees of the
16City who provide services to the Authority or otherwise
17influence the decisions of the Authority or the Casino Board.
18    (p) Any Casino Board member or employee of the Authority
19who violates any provision of this Section is guilty of a Class
204 felony.
 
21    Section 1-45. Casino management contracts.
22    (a) In accordance with all applicable procurement laws and
23rules, the Casino Board shall develop and administer a
24competitive sealed bidding process for the selection of a
25potential casino operator licensee to develop or operate a

 

 

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1casino within the City. The Casino Board shall issue one or
2more requests for proposals. The Casino Board may establish
3minimum financial and investment requirements to determine the
4eligibility of persons to respond to the Casino Board's
5requests for proposals, and may establish and consider such
6other criteria as it deems appropriate. The Casino Board may
7impose a reasonable fee upon persons who respond to requests
8for proposals, in order to reimburse the Casino Board for its
9costs in preparing and issuing the requests and reviewing the
10proposals. At least 30 days prior to the commencement of the
11competitive bidding process, the Gaming Board shall be given an
12opportunity to review the competitive bidding process
13established by the Casino Board. During the competitive bidding
14process, the Casino Board shall keep the Gaming Board apprised
15of the process and the responses received in connection with
16the Casino Board's requests for proposals.
17    (b) Within 5 business days after the time limit for
18submitting bids and proposals has passed, the Casino Board
19shall make all bids and proposals public, provided, however,
20the Casino Board shall not be required to disclose any
21information which would be exempt from disclosure under Section
227 of the Freedom of Information Act. Thereafter, the Casino
23Board shall evaluate the responses to its requests for
24proposals and the ability of all persons or entities responding
25to its requests for proposals to meet the requirements of this
26Act and any relevant provisions of the Illinois Gambling Act

 

 

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1and to undertake and perform the obligations set forth in its
2requests for proposals.
3    (c) After reviewing proposals and selecting a successful
4bidder, the Casino Board shall enter into a casino management
5contract with the successful bidder authorizing the operation
6of a casino. The casino operator shall be subject to a
7background investigation and approval by the Gaming Board. The
8Gaming Board shall complete its background investigation and
9approval of the casino operator within 6 months after the date
10that the proposed casino operator submits its application to
11the Gaming Board. If the Gaming Board does not complete its
12background investigation and approval within the 6-month
13period, then the Gaming Board shall give a written explanation
14to the proposed casino operator and the chief legal officer of
15the Authority as to why it has not reached a final
16determination and when it reasonably expects to make a final
17determination. Validity of the casino management contract is
18contingent upon the issuance of a casino operator license to
19the successful bidder. If the Gaming Board grants a casino
20operator license, the Casino Board shall transmit a copy of the
21executed casino management contract to the Gaming Board.
22    (d) After (1) the Authority has been issued an owners
23license, (2) the Gaming Board has issued a casino operator
24license, and (3) the Gaming Board has approved the members of
25the Casino Board, the Authority may conduct gaming operations
26at a temporary facility, subject to the adopted rules of the

 

 

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1Gaming Board, for no longer than 24 months after gaming
2operations begin. The Gaming Board may, after holding a public
3hearing, grant an extension so long as a permanent facility is
4not operational and the Authority is working in good faith to
5complete the permanent facility. The Gaming Board may grant
6additional extensions following further public hearings. Each
7extension may be for a period of no longer than 6 months.
8    (e) Fifty percent of any initial consideration received by
9the Authority that was paid as an inducement pursuant to a bid
10for a casino management contract or an executed casino
11management contract must be transmitted to the State and
12deposited into the Gaming Facilities Fee Revenue Fund. The
13initial consideration shall not include (1) any amounts paid to
14the Authority as reimbursement for its costs in preparing or
15issuing the requests for proposals and reviewing the proposals
16or (2) any amounts loaned to the Authority or paid by an entity
17on behalf of the Authority for the design, construction,
18outfitting, or equipping of the casino, pre-opening expenses,
19bank roll or similar expenses required to open and operate the
20casino, or any license or per position fees imposed pursuant to
21the Illinois Gambling Act or any other financial obligation of
22the Authority.
 
23    Section 1-47. Freedom of Information Act. The Authority
24shall be a public body as defined in the Freedom of Information
25Act and shall be subject to the provisions of the Freedom of

 

 

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1Information Act.
 
2    Section 1-50. Transfer of funds. The revenues received by
3the Authority (other than amounts required to be paid pursuant
4to the Illinois Gambling Act and amounts required to pay the
5operating expenses of the Authority, to pay amounts due the
6casino operator licensee pursuant to a casino management
7contract, to repay any borrowing of the Authority made pursuant
8to Section 1-31, to pay debt service on any bonds issued under
9Section 1-75, and to pay any expenses in connection with the
10issuance of such bonds pursuant to Section 1-75 or derivative
11products pursuant to Section 1-85) shall be transferred to the
12City by the Authority. Moneys transferred to the City pursuant
13to this Section shall be expended or obligated by the City for
14pension payments in accordance with Public Act 99-506.
 
15    Section 1-60. Auditor General.
16    (a) Prior to the issuance of bonds under this Act, the
17Authority shall submit to the Auditor General a certification
18that:
19        (1) it is legally authorized to issue bonds;
20        (2) scheduled annual payments of principal and
21    interest on the bonds to be issued meet the requirements of
22    Section 1-75 of this Act;
23        (3) no bond shall mature later than 30 years; and
24        (4) after payment of costs of issuance and necessary

 

 

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1    deposits to funds and accounts established with respect to
2    debt service on the bonds, the net bond proceeds (exclusive
3    of any proceeds to be used to refund outstanding bonds)
4    will be used only for the purposes set forth in this Act.
5    The Authority also shall submit to the Auditor General its
6projections on revenues to be generated and pledged to
7repayment of the bonds as scheduled and such other information
8as the Auditor General may reasonably request.
9    The Auditor General shall examine the certifications and
10information submitted and submit a report to the Authority and
11the Gaming Board indicating whether the required
12certifications, projections, and other information have been
13submitted by the Authority and whether the assumptions
14underlying the projections are not unreasonable in the
15aggregate. The Auditor General shall submit the report no later
16than 60 days after receiving the information required to be
17submitted by the Authority.
18    The Auditor General shall submit a bill to the Authority
19for costs associated with the examinations and report required
20under this Section. The Authority shall reimburse in a timely
21manner.
22    (b) The Authority shall enter into an intergovernmental
23agreement with the Auditor General authorizing the Auditor
24General to, every 2 years, (i) review the financial audit of
25the Authority performed by the Authority's certified public
26accountants, (ii) perform a management audit of the Authority,

 

 

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1and (iii) perform a management audit of the casino operator
2licensee. The Auditor General shall provide the Authority and
3the General Assembly with the audits and shall post on his or
4her Internet website such portions of the audit or other
5financial information as generally would be made publicly
6available for other owners licensees under the Illinois
7Gambling Act. The Auditor General shall submit a bill to the
8Authority for costs associated with the review and the audit
9required under this Section, which costs shall not exceed
10$100,000, and the Authority shall reimburse the Auditor General
11for such costs in a timely manner.
 
12    Section 1-62. Advisory committee. An Advisory Committee is
13established to monitor, review, and report on (1) the
14Authority's utilization of minority-owned business enterprises
15and female-owned business enterprises, (2) employment of
16females, and (3) employment of minorities with regard to the
17development and construction of the casino as authorized under
18Section 7 of the Illinois Gambling Act. The Authority shall
19work with the Advisory Committee in accumulating necessary
20information for the Committee to submit reports, as necessary,
21to the General Assembly and to the City.
22    The Committee shall consist of 9 members as provided in
23this Section. Five members shall be selected by the Governor
24and 4 members shall be selected by the Mayor. The Governor and
25Mayor shall each appoint at least one current member of the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0007- 35 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 36 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 37 -LRB100 06307 AMC 16345 b

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

 

 

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1120 days after the end of the Authority's fiscal year, as soon
2as practical after completion of the audit, to the Governor,
3the Mayor, the General Assembly, and the Commission on
4Government Forecasting and Accountability.
 
5    Section 1-110. Deposit and withdrawal of funds.
6    (a) All funds deposited by the Authority in any bank or
7savings and loan association shall be placed in the name of the
8Authority and shall be withdrawn or paid out only by check or
9draft upon the bank or savings and loan association, signed by
102 officers or employees designated by the Casino Board.
11Notwithstanding any other provision of this Section, the Casino
12Board may designate any of its members or any officer or
13employee of the Authority to authorize the wire transfer of
14funds deposited by the secretary-treasurer of funds in a bank
15or savings and loan association for the payment of payroll and
16employee benefits-related expenses.
17    No bank or savings and loan association shall receive
18public funds as permitted by this Section unless it has
19complied with the requirements established pursuant to Section
206 of the Public Funds Investment Act.
21    (b) If any officer or employee whose signature appears upon
22any check or draft issued pursuant to this Act ceases (after
23attaching his signature) to hold his or her office before the
24delivery of such a check or draft to the payee, his or her
25signature shall nevertheless be valid and sufficient for all

 

 

SB0007- 39 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 40 -LRB100 06307 AMC 16345 b

1contracts with an annual value of $25,000 or more or for a
2period to exceed one year shall disclose all political
3contributions of the bidder, respondent, offeror, or
4contractor and any affiliated person or entity. Disclosure
5shall include at least the names and addresses of the
6contributors and the dollar amounts of any contributions to any
7political committee made within the previous 2 years. The
8disclosure must be submitted to the Gaming Board with a copy of
9the contract. All such disclosures shall be posted on the
10websites of the Authority and the Gaming Board.
11    (c) As used in this Section:
12    "Contribution" means contribution as defined in Section
139-1.4 of the Election Code.
14    "Affiliated person" means (i) any person with any ownership
15interest or distributive share of the bidding, responding, or
16contracting entity in excess of 1%, (ii) executive employees of
17the bidding, responding, or contracting entity, and (iii) the
18spouse, minor children, and parents of any such persons.
19    "Affiliated entity" means (i) any parent or subsidiary of
20the bidding or contracting entity, (ii) any member of the same
21unitary business group, or (iii) any political committee for
22which the bidding, responding, or contracting entity is the
23sponsoring entity.
24    (d) The Gaming Board may direct the Authority or a casino
25operator licensee to void a contract if a violation of this
26Section occurs. The Authority may direct a casino operator

 

 

SB0007- 41 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0007- 46 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

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1under this Act. This Section is a denial and limitation of home
2rule powers and functions under subsection (h) of Section 6 of
3Article VII of the Illinois Constitution.
 
4
ARTICLE 90.

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0007- 53 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

SB0007- 55 -LRB100 06307 AMC 16345 b

1        (4) the head of a department, commission, board,
2    division, bureau, authority, or other administrative unit
3    within the government of this State;
4        (5) chief procurement officers, State purchasing
5    officers, and their designees whose duties are directly
6    related to State procurement; and
7        (6) chiefs of staff, deputy chiefs of staff, associate
8    chiefs of staff, assistant chiefs of staff, and deputy
9    governors; .
10        (7) employees of the Illinois Racing Board; and
11        (8) employees of the Illinois Gaming Board.
12    (i) For the purposes of this Section, with respect to
13officers or employees of a regional transit board, as defined
14in this Act, the phrase "person or entity" does not include:
15(i) the United States government, (ii) the State, (iii)
16municipalities, as defined under Article VII, Section 1 of the
17Illinois Constitution, (iv) units of local government, as
18defined under Article VII, Section 1 of the Illinois
19Constitution, or (v) school districts.
20(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
 
21    (5 ILCS 430/20-10)
22    Sec. 20-10. Offices of Executive Inspectors General.
23    (a) Six Five independent Offices of the Executive Inspector
24General are created, one each for the Governor, the Attorney
25General, the Secretary of State, the Comptroller, and the

 

 

SB0007- 56 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 57 -LRB100 06307 AMC 16345 b

1or Treasurer of any other inspector general required or
2permitted by law. The Governor, Attorney General, Secretary of
3State, Comptroller, and Treasurer each may appoint an existing
4inspector general as the Executive Inspector General required
5by this Article, provided that such an inspector general is not
6prohibited by law, rule, jurisdiction, qualification, or
7interest from serving as the Executive Inspector General
8required by this Article. An appointing authority may not
9appoint a relative as an Executive Inspector General.
10    Each Executive Inspector General shall have the following
11qualifications:
12        (1) has not been convicted of any felony under the laws
13    of this State, another State, or the United States;
14        (2) has earned a baccalaureate degree from an
15    institution of higher education; and
16        (3) has 5 or more years of cumulative service (A) with
17    a federal, State, or local law enforcement agency, at least
18    2 years of which have been in a progressive investigatory
19    capacity; (B) as a federal, State, or local prosecutor; (C)
20    as a senior manager or executive of a federal, State, or
21    local agency; (D) as a member, an officer, or a State or
22    federal judge; or (E) representing any combination of (A)
23    through (D).
24    The term of each initial Executive Inspector General shall
25commence upon qualification and shall run through June 30,
262008. The initial appointments shall be made within 60 days

 

 

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1after the effective date of this Act.
2    After the initial term, each Executive Inspector General
3shall serve for 5-year terms commencing on July 1 of the year
4of appointment and running through June 30 of the fifth
5following year. An Executive Inspector General may be
6reappointed to one or more subsequent terms.
7    A vacancy occurring other than at the end of a term shall
8be filled by the appointing authority only for the balance of
9the term of the Executive Inspector General whose office is
10vacant.
11    Terms shall run regardless of whether the position is
12filled.
13    (c) The Executive Inspector General appointed by the
14Attorney General shall have jurisdiction over the Attorney
15General and all officers and employees of, and vendors and
16others doing business with, State agencies within the
17jurisdiction of the Attorney General. The Executive Inspector
18General appointed by the Secretary of State shall have
19jurisdiction over the Secretary of State and all officers and
20employees of, and vendors and others doing business with, State
21agencies within the jurisdiction of the Secretary of State. The
22Executive Inspector General appointed by the Comptroller shall
23have jurisdiction over the Comptroller and all officers and
24employees of, and vendors and others doing business with, State
25agencies within the jurisdiction of the Comptroller. The
26Executive Inspector General appointed by the Treasurer shall

 

 

SB0007- 59 -LRB100 06307 AMC 16345 b

1have jurisdiction over the Treasurer and all officers and
2employees of, and vendors and others doing business with, State
3agencies within the jurisdiction of the Treasurer. The
4Executive Inspector General appointed by the Governor shall
5have jurisdiction over (i) the Governor, (ii) the Lieutenant
6Governor, (iii) all officers and employees of, and vendors and
7others doing business with, executive branch State agencies
8under the jurisdiction of the Executive Ethics Commission and
9not within the jurisdiction of the Attorney General, the
10Secretary of State, the Comptroller, or the Treasurer, or the
11Executive Inspector General for gaming activities, and (iv) all
12board members and employees of the Regional Transit Boards and
13all vendors and others doing business with the Regional Transit
14Boards. The Executive Inspector General for gaming activities
15appointed by the Governor has jurisdiction over the Illinois
16Gaming Board, all officers and employees of the Illinois Gaming
17Board, and all activities of the Illinois Gaming Board.
18    The jurisdiction of each Executive Inspector General is to
19investigate allegations of fraud, waste, abuse, mismanagement,
20misconduct, nonfeasance, misfeasance, malfeasance, or
21violations of this Act or violations of other related laws and
22rules.
23    (d) The compensation for each Executive Inspector General
24shall be determined by the Executive Ethics Commission and
25shall be made from appropriations made to the Comptroller for
26this purpose. Subject to Section 20-45 of this Act, each

 

 

SB0007- 60 -LRB100 06307 AMC 16345 b

1Executive Inspector General has full authority to organize his
2or her Office of the Executive Inspector General, including the
3employment and determination of the compensation of staff, such
4as deputies, assistants, and other employees, as
5appropriations permit. A separate appropriation shall be made
6for each Office of Executive Inspector General.
7    (e) No Executive Inspector General or employee of the
8Office of the Executive Inspector General may, during his or
9her term of appointment or employment:
10        (1) become a candidate for any elective office;
11        (2) hold any other elected or appointed public office
12    except for appointments on governmental advisory boards or
13    study commissions or as otherwise expressly authorized by
14    law;
15        (3) be actively involved in the affairs of any
16    political party or political organization; or
17        (4) advocate for the appointment of another person to
18    an appointed or elected office or position or actively
19    participate in any campaign for any elective office.
20    In this subsection an appointed public office means a
21position authorized by law that is filled by an appointing
22authority as provided by law and does not include employment by
23hiring in the ordinary course of business.
24    (e-1) No Executive Inspector General or employee of the
25Office of the Executive Inspector General may, for one year
26after the termination of his or her appointment or employment:

 

 

SB0007- 61 -LRB100 06307 AMC 16345 b

1        (1) become a candidate for any elective office;
2        (2) hold any elected public office; or
3        (3) hold any appointed State, county, or local judicial
4    office.
5    (e-2) The requirements of item (3) of subsection (e-1) may
6be waived by the Executive Ethics Commission.
7    (f) An Executive Inspector General may be removed only for
8cause and may be removed only by the appointing constitutional
9officer. At the time of the removal, the appointing
10constitutional officer must report to the Executive Ethics
11Commission the justification for the removal.
12(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
 
13    Section 90-5. The Alcoholism and Other Drug Abuse and
14Dependency Act is amended by changing Section 5-20 as follows:
 
15    (20 ILCS 301/5-20)
16    Sec. 5-20. Compulsive gambling program.
17    (a) Subject to appropriation, the Department shall
18establish a program for public education, research, and
19training regarding problem and compulsive gambling and the
20treatment and prevention of problem and compulsive gambling.
21Subject to specific appropriation for these stated purposes,
22the program must include all of the following:
23        (1) Establishment and maintenance of a toll-free "800"
24    telephone number to provide crisis counseling and referral

 

 

SB0007- 62 -LRB100 06307 AMC 16345 b

1    services to families experiencing difficulty as a result of
2    problem or compulsive gambling.
3        (2) Promotion of public awareness regarding the
4    recognition and prevention of problem and compulsive
5    gambling.
6        (3) Facilitation, through in-service training and
7    other means, of the availability of effective assistance
8    programs for problem and compulsive gamblers.
9        (4) Conducting studies to identify adults and
10    juveniles in this State who are, or who are at risk of
11    becoming, problem or compulsive gamblers.
12    (b) Subject to appropriation, the Department shall either
13establish and maintain the program or contract with a private
14or public entity for the establishment and maintenance of the
15program. Subject to appropriation, either the Department or the
16private or public entity shall implement the toll-free
17telephone number, promote public awareness, and conduct
18in-service training concerning problem and compulsive
19gambling.
20    (c) Subject to appropriation, the Department shall produce
21and supply the signs specified in Section 10.7 of the Illinois
22Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
231975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
24of the Charitable Games Act, and Section 13.1 of the Illinois
25Riverboat Gambling Act.
26(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 

 

 

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1    Section 90-6. The Department of Commerce and Economic
2Opportunity Law of the Civil Administrative Code of Illinois is
3amended by adding Sections 605-530 and 605-535 as follows:
 
4    (20 ILCS 605/605-530 new)
5    Sec. 605-530. The Depressed Communities Economic
6Development Board.
7    (a) The Depressed Communities Economic Development Board
8is created as an advisory board within the Department of
9Commerce and Economic Opportunity. The Board shall consist of
10the following members:
11        (1) 3 members appointed by the Governor, one of whom
12    shall be appointed to serve an initial term of one year and
13    2 of whom shall be appointed to serve an initial term of 2
14    years;
15        (2) 2 members appointed by the Speaker of the House of
16    Representatives, one of whom shall be appointed to serve an
17    initial term of one year and one of whom shall be appointed
18    to serve an initial term of 2 years;
19        (3) 2 members appointed by the President of the Senate,
20    one of whom shall be appointed to serve an initial term of
21    one year and one of whom shall be appointed to serve an
22    initial term of 2 years;
23        (4) 2 members appointed by the Minority Leader of the
24    House of Representatives, one of whom shall be appointed to

 

 

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

 

 

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1Commerce and Economic Opportunity concerning the award of
2grants from amounts appropriated to the Department from the
3Depressed Communities Economic Development Fund, a special
4fund created in the State treasury. The Department must make
5grants to public or private entities submitting proposals to
6the Board to revitalize an Illinois depressed community. Grants
7may be used by these entities only for those purposes
8conditioned with the grant. For the purposes of this subsection
9(c), plans for revitalizing an Illinois depressed community
10include plans intended to curb high levels of poverty,
11unemployment, job and population loss, and general distress. An
12Illinois depressed community is an area where the poverty rate,
13as determined by using the most recent data released by the
14United States Census Bureau, is at least 3% greater than the
15State poverty rate as determined by using the most recent data
16released by the United States Census Bureau.
 
17    (20 ILCS 605/605-535 new)
18    Sec. 605-535. The Commission on the Future of Economic
19Development of the Latino Community.
20    (a) There is hereby created the Commission on the Future of
21Economic Development of the Latino Community within the
22Department. The purpose of the Commission shall be to maintain
23and develop the economy of Latinos and to provide opportunities
24for this community, which will enhance and expand the quality
25of their lives.

 

 

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1    The Commission shall concentrate its major efforts on
2strategic planning, policy research and analysis, advocacy,
3evaluation, and promoting coordination and collaboration.
4    During each regular legislative session, the Commission
5must consult with appropriate legislative committees about the
6State's economic development needs and opportunities in the
7Latino community.
8    By October 1st of each even-numbered year, the Commission
9must submit to the Governor and the General Assembly a biennial
10comprehensive statewide economic development strategy for the
11Latino community with a report on progress from the previous
12comprehensive strategy.
13    The comprehensive statewide economic development strategy
14may include, but is not limited to:
15        (1) an assessment of the Latino community's economic
16    vitality;
17        (2) recommended goals, objectives, and priorities for
18    the next biennium and the future;
19        (3) a common set of outcomes and benchmarks for the
20    economic development system as a whole for the Latino
21    community;
22        (4) recommendations for removing barriers for Latinos
23    in employment;
24        (5) an inventory of existing relevant programs
25    compiled by the Commission from materials submitted by
26    agencies;

 

 

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1        (6) recommendations for expanding, discontinuing, or
2    redirecting existing programs or adding new programs to
3    better serve the Latino community; and
4        (7) recommendations of best practices and public and
5    private sector roles in implementing the comprehensive
6    statewide economic development strategy.
7    In developing the biennial statewide economic development
8strategy, goals, objectives, priorities, and recommendations,
9the Commission shall consult, collaborate, and coordinate with
10relevant State agencies, private sector business, nonprofit
11organizations involved in economic development, trade
12associations, associate development organizations, and
13relevant local organizations in order to avoid duplication of
14effort.
15    State agencies shall cooperate with the Commission and
16provide information as the Commission may reasonably request.
17    The Commission shall review and make budget
18recommendations to the Governor's Office of Management and
19Budget and the General Assembly in areas relating to the
20economic development in the State's Latino community.
21    The Commission shall evaluate its own performance on a
22regular basis.
23    The Commission may accept gifts, grants, donations,
24sponsorships, or contributions from any federal, State, or
25local governmental agency or program, or any private source,
26and expend the same for any purpose consistent with this

 

 

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1Section.
2    (b) The Commission shall consist of 12 voting members,
3appointed by the Governor, 4 of whom shall be appointed to
4serve an initial term of one year, 4 of whom shall be appointed
5to serve an initial term of 2 years, and 4 of whom shall be
6appointed to serve an initial term of 3 years. After the
7initial term, each member shall be appointed to a term of 3
8years. Members of the Commission shall serve at the pleasure of
9the Governor for not more than 2 consecutive 3-year terms. In
10appointing members, the Governor shall appoint individuals
11from the following private industry sectors:
12        (1) production agriculture;
13        (2) at least 2 individuals from manufacturing, one of
14    whom shall represent a company with no more than 75
15    employees;
16        (3) transportation, construction, and logistics;
17        (4) travel and tourism;
18        (5) financial services and insurance;
19        (6) information technology and communications; and
20        (7) biotechnology.
21    The members of the Commission shall choose a member to
22serve as chair of the Commission. The members of the Commission
23shall be representative, to the extent possible, of the various
24geographic areas of the State. The Director shall serve as an
25ad hoc nonvoting member of the Commission. Vacancies shall be
26filled in the same manner as the original appointments. The

 

 

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1members of the Commission shall serve without compensation.
2    (c) The Commission shall meet at least 4 times per year,
3with at least one meeting each calendar quarter, at the call of
4the director or 4 voting members of the Commission. The staff
5and support for the Commission shall be provided by the
6Department.
7    (d) The Commission and Department are encouraged to involve
8other essential groups in the work of the Commission,
9including, but not limited to:
10        (1) public universities;
11        (2) community colleges;
12        (3) other educational institutions; and
13        (4) the Department of Labor.
14    (e) The Commission shall make recommendations, which must
15be approved by a majority of the members of the Commission, to
16the Department concerning the award of grants from amounts
17appropriated to the Department from the Latino Community
18Economic Development Fund, a special fund in the State
19treasury. The Department shall make grants to public or private
20entities submitting proposals to the Commission to assist in
21the economic development of the Latino community. Grants may be
22used by these entities only for those purposes conditioned with
23the grant. The Commission shall coordinate with the Department
24to develop grant criteria.
25    (f) For the purposes of this Section:
26    "Department" means the Department of Commerce and Economic

 

 

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1Development.
2    "Director" means the Director of Commerce and Economic
3Development.
4    "Educational institutions" means nonprofit public and
5private colleges, community colleges, State colleges, and
6universities in this State.
 
7    Section 90-8. The Illinois Lottery Law is amended by
8changing Section 9.1 as follows:
 
9    (20 ILCS 1605/9.1)
10    Sec. 9.1. Private manager and management agreement.
11    (a) As used in this Section:
12    "Offeror" means a person or group of persons that responds
13to a request for qualifications under this Section.
14    "Request for qualifications" means all materials and
15documents prepared by the Department to solicit the following
16from offerors:
17        (1) Statements of qualifications.
18        (2) Proposals to enter into a management agreement,
19    including the identity of any prospective vendor or vendors
20    that the offeror intends to initially engage to assist the
21    offeror in performing its obligations under the management
22    agreement.
23    "Final offer" means the last proposal submitted by an
24offeror in response to the request for qualifications,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        (21) Right of use of copyrights, trademarks, and
2    service marks held by the Department in the name of the
3    State. The agreement must provide that any use of them by
4    the manager shall only be for the purpose of fulfilling its
5    obligations under the management agreement during the term
6    of the agreement.
7        (22) The disclosure of any information requested by the
8    Department to enable it to comply with the reporting
9    requirements and information requests provided for under
10    subsection (p) of this Section.
11    (e) Notwithstanding any other law to the contrary, the
12Department shall select a private manager through a competitive
13request for qualifications process consistent with Section
1420-35 of the Illinois Procurement Code, which shall take into
15account:
16        (1) the offeror's ability to market the Lottery to
17    those residents who are new, infrequent, or lapsed players
18    of the Lottery, especially those who are most likely to
19    make regular purchases on the Internet;
20        (2) the offeror's ability to address the State's
21    concern with the social effects of gambling on those who
22    can least afford to do so;
23        (3) the offeror's ability to provide the most
24    successful management of the Lottery for the benefit of the
25    people of the State based on current and past business
26    practices or plans of the offeror; and

 

 

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

 

 

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

 

 

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

 

 

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1designation of the private manager as provided in subsection
2(h) of this Section.
3    (j) The Lottery shall remain, for so long as a private
4manager manages the Lottery in accordance with provisions of
5this Act, a Lottery conducted by the State, and the State shall
6not be authorized to sell or transfer the Lottery to a third
7party.
8    (k) Any tangible personal property used exclusively in
9connection with the lottery that is owned by the Department and
10leased to the private manager shall be owned by the Department
11in the name of the State and shall be considered to be public
12property devoted to an essential public and governmental
13function.
14    (l) The Department may exercise any of its powers under
15this Section or any other law as necessary or desirable for the
16execution of the Department's powers under this Section.
17    (m) Neither this Section nor any management agreement
18entered into under this Section prohibits the General Assembly
19from authorizing forms of gambling that are not in direct
20competition with the Lottery. The forms of gambling authorized
21by this amendatory Act of the 100th General Assembly constitute
22authorized forms of gambling that are not in direct competition
23with the Lottery.
24    (n) The private manager shall be subject to a complete
25investigation in the third, seventh, and tenth years of the
26agreement (if the agreement is for a 10-year term) by the

 

 

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

 

 

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

 

 

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1management agreement. The Department, after the Chief
2Procurement Officer certifies that the procurement process has
3been followed in accordance with the rules adopted under this
4subsection (o), shall select a final offeror as the private
5manager and sign the management agreement with the private
6manager.
7    Except as provided in Sections 21.2, 21.5, 21.6, 21.7,
821.8, and 21.9, the Department shall distribute all proceeds of
9lottery tickets and shares sold in the following priority and
10manner:
11        (1) The payment of prizes and retailer bonuses.
12        (2) The payment of costs incurred in the operation and
13    administration of the Lottery, including the payment of
14    sums due to the private manager under the management
15    agreement with the Department.
16        (3) On the last day of each month or as soon thereafter
17    as possible, the State Comptroller shall direct and the
18    State Treasurer shall transfer from the State Lottery Fund
19    to the Common School Fund an amount that is equal to the
20    proceeds transferred in the corresponding month of fiscal
21    year 2009, as adjusted for inflation, to the Common School
22    Fund.
23        (4) On or before the last day of each fiscal year,
24    deposit any remaining proceeds, subject to payments under
25    items (1), (2), and (3) into the Capital Projects Fund each
26    fiscal year.

 

 

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1    (p) The Department shall be subject to the following
2reporting and information request requirements:
3        (1) the Department shall submit written quarterly
4    reports to the Governor and the General Assembly on the
5    activities and actions of the private manager selected
6    under this Section;
7        (2) upon request of the Chief Procurement Officer, the
8    Department shall promptly produce information related to
9    the procurement activities of the Department and the
10    private manager requested by the Chief Procurement
11    Officer; the Chief Procurement Officer must retain
12    confidential, proprietary, or trade secret information
13    designated by the Department in complete confidence
14    pursuant to subsection (g) of Section 7 of the Freedom of
15    Information Act; and
16        (3) at least 30 days prior to the beginning of the
17    Department's fiscal year, the Department shall prepare an
18    annual written report on the activities of the private
19    manager selected under this Section and deliver that report
20    to the Governor and General Assembly.
21(Source: P.A. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13;
2298-649, eff. 6-16-14.)
 
23    Section 90-10. The Department of Revenue Law of the Civil
24Administrative Code of Illinois is amended by changing Section
252505-305 as follows:
 

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1conduct or cause to be conducted a financial and compliance
2audit of the books and records of any county water commission
3organized pursuant to the Water Commission Act of 1985 and
4shall file a copy of the report of that audit with the Governor
5and the Legislative Audit Commission. The filed audit shall be
6open to the public for inspection. The cost of the audit shall
7be charged to the county water commission in accordance with
8Section 6z-27 of the State Finance Act. The county water
9commission shall make available to the Auditor General its
10books and records and any other documentation, whether in the
11possession of its trustees or other parties, necessary to
12conduct the audit required. These audit requirements apply only
13through July 1, 2007.
14    The Auditor General must conduct audits of the Rend Lake
15Conservancy District as provided in Section 25.5 of the River
16Conservancy Districts Act.
17    The Auditor General must conduct financial audits of the
18Southeastern Illinois Economic Development Authority as
19provided in Section 70 of the Southeastern Illinois Economic
20Development Authority Act.
21    The Auditor General shall conduct a compliance audit in
22accordance with subsections (d) and (f) of Section 30 of the
23Innovation Development and Economy Act.
24(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
2596-939, eff. 6-24-10.)
 

 

 

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1    Section 90-15. The State Finance Act is amended by adding
2Sections 5.878, 5.879, 5.880, and 6z-102 and by changing
3Section 6z-45 as follows:
 
4    (30 ILCS 105/5.878 new)
5    Sec. 5.878. The Gaming Facilities Fee Revenue Fund.
 
6    (30 ILCS 105/5.879 new)
7    Sec. 5.879. The Depressed Communities Economic Development
8Fund.
 
9    (30 ILCS 105/5.880 new)
10    Sec. 5.880. The Latino Community Economic Development
11Fund.
 
12    (30 ILCS 105/6z-45)
13    Sec. 6z-45. The School Infrastructure Fund.
14    (a) The School Infrastructure Fund is created as a special
15fund in the State Treasury.
16    In addition to any other deposits authorized by law,
17beginning January 1, 2000, on the first day of each month, or
18as soon thereafter as may be practical, the State Treasurer and
19State Comptroller shall transfer the sum of $5,000,000 from the
20General Revenue Fund to the School Infrastructure Fund, except
21that, notwithstanding any other provision of law, and in
22addition to any other transfers that may be provided for by

 

 

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1law, before June 30, 2012, the Comptroller and the Treasurer
2shall transfer $45,000,000 from the General Revenue Fund into
3the School Infrastructure Fund, and, for fiscal year 2013 only,
4the Treasurer and the Comptroller shall transfer $1,250,000
5from the General Revenue Fund to the School Infrastructure Fund
6on the first day of each month; provided, however, that no such
7transfers shall be made from July 1, 2001 through June 30,
82003.
9    (b) Subject to the transfer provisions set forth below,
10money in the School Infrastructure Fund shall, if and when the
11State of Illinois incurs any bonded indebtedness for the
12construction of school improvements under the School
13Construction Law, be set aside and used for the purpose of
14paying and discharging annually the principal and interest on
15that bonded indebtedness then due and payable, and for no other
16purpose.
17    In addition to other transfers to the General Obligation
18Bond Retirement and Interest Fund made pursuant to Section 15
19of the General Obligation Bond Act, upon each delivery of bonds
20issued for construction of school improvements under the School
21Construction Law, the State Comptroller shall compute and
22certify to the State Treasurer the total amount of principal
23of, interest on, and premium, if any, on such bonds during the
24then current and each succeeding fiscal year. With respect to
25the interest payable on variable rate bonds, such
26certifications shall be calculated at the maximum rate of

 

 

SB0007- 94 -LRB100 06307 AMC 16345 b

1interest that may be payable during the fiscal year, after
2taking into account any credits permitted in the related
3indenture or other instrument against the amount of such
4interest required to be appropriated for that period.
5    On or before the last day of each month, the State
6Treasurer and State Comptroller shall transfer from the School
7Infrastructure Fund to the General Obligation Bond Retirement
8and Interest Fund an amount sufficient to pay the aggregate of
9the principal of, interest on, and premium, if any, on the
10bonds payable on their next payment date, divided by the number
11of monthly transfers occurring between the last previous
12payment date (or the delivery date if no payment date has yet
13occurred) and the next succeeding payment date. Interest
14payable on variable rate bonds shall be calculated at the
15maximum rate of interest that may be payable for the relevant
16period, after taking into account any credits permitted in the
17related indenture or other instrument against the amount of
18such interest required to be appropriated for that period.
19Interest for which moneys have already been deposited into the
20capitalized interest account within the General Obligation
21Bond Retirement and Interest Fund shall not be included in the
22calculation of the amounts to be transferred under this
23subsection.
24    (b-5) The money deposited into the School Infrastructure
25Fund from transfers pursuant to subsections (c-30) and (c-35)
26of Section 13 of the Illinois Riverboat Gambling Act shall be

 

 

SB0007- 95 -LRB100 06307 AMC 16345 b

1applied, without further direction, as provided in subsection
2(b-3) of Section 5-35 of the School Construction Law.
3    (c) The surplus, if any, in the School Infrastructure Fund
4after payments made pursuant to subsections (b) and (b-5) of
5this Section shall, subject to appropriation, be used as
6follows:
7    First - to make 3 payments to the School Technology
8Revolving Loan Fund as follows:
9        Transfer of $30,000,000 in fiscal year 1999;
10        Transfer of $20,000,000 in fiscal year 2000; and
11        Transfer of $10,000,000 in fiscal year 2001.
12    Second - to pay the expenses of the State Board of
13Education and the Capital Development Board in administering
14programs under the School Construction Law, the total expenses
15not to exceed $1,200,000 in any fiscal year.
16    Third - to pay any amounts due for grants for school
17construction projects and debt service under the School
18Construction Law.
19    Fourth - to pay any amounts due for grants for school
20maintenance projects under the School Construction Law.
21(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
 
22    (30 ILCS 105/6z-102 new)
23    Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.
24    (a) The Gaming Facilities Fee Revenue Fund is created as a
25special fund in the State treasury.

 

 

SB0007- 96 -LRB100 06307 AMC 16345 b

1    (b) The revenues in the Fund shall be used, subject to
2appropriation, by the Comptroller for the purpose of (i)
3providing appropriations to the Illinois Gaming Board for the
4administration and enforcement of the Illinois Gambling Act and
5the applicable provisions of the Chicago Casino Development
6Authority Act and (ii) payment of vouchers that are outstanding
7for more than 60 days. Whenever practical, the Comptroller must
8prioritize voucher payments for expenses related to medical
9assistance under the Illinois Public Aid Code, the Children's
10Health Insurance Program Act, the Covering ALL KIDS Health
11Insurance Act, and the Senior Citizens and Disabled Persons
12Property Tax Relief and Pharmaceutical Assistance Act.
13    (c) The Fund shall consist of fee revenues received
14pursuant to subsection (e) of Section 1-45 of the Chicago
15Casino Development Authority Act and pursuant to subsections
16(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections
17(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
18Act. All interest earned on moneys in the Fund shall be
19deposited into the Fund.
20    (d) The Fund shall not be subject to administrative charges
21or chargebacks, including, but not limited to, those authorized
22under subsection (h) of Section 8 of this Act.
 
23    Section 90-20. The Illinois Income Tax Act is amended by
24changing Sections 201, 303, 304 and 710 as follows:
 

 

 

SB0007- 97 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 98 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

SB0007- 100 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 101 -LRB100 06307 AMC 16345 b

1        (14) In the case of a corporation, for taxable years
2    beginning on or after January 1, 2025, an amount equal to
3    4.8% of the taxpayer's net income for the taxable year.
4    The rates under this subsection (b) are subject to the
5provisions of Section 201.5.
6    (b-5) Surcharge; sale or exchange of assets, properties,
7and intangibles of electronic gaming licensees. For each of
8taxable years 2017 through 2025, a surcharge is imposed on all
9taxpayers on income arising from the sale or exchange of
10capital assets, depreciable business property, real property
11used in the trade or business, and Section 197 intangibles (i)
12of an organization licensee under the Illinois Horse Racing Act
13of 1975 and (ii) of an electronic gaming licensee under the
14Illinois Gambling Act. The amount of the surcharge is equal to
15the amount of federal income tax liability for the taxable year
16attributable to those sales and exchanges. The surcharge
17imposed shall not apply if:
18        (1) the electronic gaming license, organization
19    license, or race track property is transferred as a result
20    of any of the following:
21            (A) bankruptcy, a receivership, or a debt
22        adjustment initiated by or against the initial
23        licensee or the substantial owners of the initial
24        licensee;
25            (B) cancellation, revocation, or termination of
26        any such license by the Illinois Gaming Board or the

 

 

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

 

 

SB0007- 103 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0007- 113 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 114 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 115 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 116 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 117 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

SB0007- 119 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 120 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 121 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Letter was issued by the Agency and recorded under Section
2    58.10 of the Environmental Protection Act. The credit must
3    be claimed for the taxable year in which Agency approval of
4    the eligible remediation costs is granted. The credit is
5    not available to any taxpayer if the taxpayer or any
6    related party caused or contributed to, in any material
7    respect, a release of regulated substances on, in, or under
8    the site that was identified and addressed by the remedial
9    action pursuant to the Site Remediation Program of the
10    Environmental Protection Act. Determinations as to credit
11    availability for purposes of this Section shall be made
12    consistent with rules adopted by the Pollution Control
13    Board pursuant to the Illinois Administrative Procedure
14    Act for the administration and enforcement of Section 58.9
15    of the Environmental Protection Act. For purposes of this
16    Section, "taxpayer" includes a person whose tax attributes
17    the taxpayer has succeeded to under Section 381 of the
18    Internal Revenue Code and "related party" includes the
19    persons disallowed a deduction for losses by paragraphs
20    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
21    Code by virtue of being a related taxpayer, as well as any
22    of its partners. The credit allowed against the tax imposed
23    by subsections (a) and (b) shall be equal to 25% of the
24    unreimbursed eligible remediation costs in excess of
25    $100,000 per site.
26        (ii) A credit allowed under this subsection that is

 

 

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

 

 

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

 

 

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1            (E) the acquisition of a controlling interest in
2        the stock or substantially all of the assets of a
3        publicly traded company;
4            (F) a transfer by a parent company to a wholly
5        owned subsidiary; or
6            (G) the transfer or sale to or by one person to
7        another person where both persons were initial owners
8        of the registration when the registration was issued;
9        or
10        (2) the cannabis cultivation center registration,
11    medical cannabis dispensary registration, or the
12    controlling interest in a registrant's property is
13    transferred in a transaction to lineal descendants in which
14    no gain or loss is recognized or as a result of a
15    transaction in accordance with Section 351 of the Internal
16    Revenue Code in which no gain or loss is recognized.
17(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
18eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
19eff. 7-16-14.)
 
20    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)
21    Sec. 303. (a) In general. Any item of capital gain or loss,
22and any item of income from rents or royalties from real or
23tangible personal property, interest, dividends, and patent or
24copyright royalties, and prizes awarded under the Illinois
25Lottery Law, and, for taxable years ending on or after December

 

 

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131, 2017, wagering and gambling winnings from Illinois sources
2as set forth in subsection (e-1) of this Section, to the extent
3such item constitutes nonbusiness income, together with any
4item of deduction directly allocable thereto, shall be
5allocated by any person other than a resident as provided in
6this Section.
7    (b) Capital gains and losses.
8        (1) Real property. Capital gains and losses from sales
9    or exchanges of real property are allocable to this State
10    if the property is located in this State.
11        (2) Tangible personal property. Capital gains and
12    losses from sales or exchanges of tangible personal
13    property are allocable to this State if, at the time of
14    such sale or exchange:
15            (A) The property had its situs in this State; or
16            (B) The taxpayer had its commercial domicile in
17        this State and was not taxable in the state in which
18        the property had its situs.
19        (3) Intangibles. Capital gains and losses from sales or
20    exchanges of intangible personal property are allocable to
21    this State if the taxpayer had its commercial domicile in
22    this State at the time of such sale or exchange.
23    (c) Rents and royalties.
24        (1) Real property. Rents and royalties from real
25    property are allocable to this State if the property is
26    located in this State.

 

 

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

 

 

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1        (1) Allocation. Patent and copyright royalties are
2    allocable to this State:
3            (A) If and to the extent that the patent or
4        copyright is utilized by the payer in this State; or
5            (B) If and to the extent that the patent or
6        copyright is utilized by the payer in a state in which
7        the taxpayer is not taxable with respect to such
8        royalties and, at the time such royalties were paid or
9        accrued, the taxpayer had its commercial domicile in
10        this State.
11        (2) Utilization.
12            (A) A patent is utilized in a state to the extent
13        that it is employed in production, fabrication,
14        manufacturing or other processing in the state or to
15        the extent that a patented product is produced in the
16        state. If the basis of receipts from patent royalties
17        does not permit allocation to states or if the
18        accounting procedures do not reflect states of
19        utilization, the patent is utilized in this State if
20        the taxpayer has its commercial domicile in this State.
21            (B) A copyright is utilized in a state to the
22        extent that printing or other publication originates
23        in the state. If the basis of receipts from copyright
24        royalties does not permit allocation to states or if
25        the accounting procedures do not reflect states of
26        utilization, the copyright is utilized in this State if

 

 

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1        the taxpayer has its commercial domicile in this State.
2    (e) Illinois lottery prizes. Prizes awarded under the
3Illinois Lottery Law are allocable to this State. Payments
4received in taxable years ending on or after December 31, 2013,
5from the assignment of a prize under Section 13.1 of the
6Illinois Lottery Law are allocable to this State.
7    (e-1) Wagering and gambling winnings. Payments received in
8taxable years ending on or after December 31, 2017 of winnings
9from pari-mutuel wagering conducted at a wagering facility
10licensed under the Illinois Horse Racing Act of 1975 and from
11gambling games conducted on a riverboat or in a casino or
12electronic gaming facility licensed under the Illinois
13Gambling Act are allocable to this State.
14    (e-5) Unemployment benefits. Unemployment benefits paid by
15the Illinois Department of Employment Security are allocable to
16this State.
17    (f) Taxability in other state. For purposes of allocation
18of income pursuant to this Section, a taxpayer is taxable in
19another state if:
20        (1) In that state he is subject to a net income tax, a
21    franchise tax measured by net income, a franchise tax for
22    the privilege of doing business, or a corporate stock tax;
23    or
24        (2) That state has jurisdiction to subject the taxpayer
25    to a net income tax regardless of whether, in fact, the
26    state does or does not.

 

 

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1    (g) Cross references.
2        (1) For allocation of interest and dividends by persons
3    other than residents, see Section 301(c)(2).
4        (2) For allocation of nonbusiness income by residents,
5    see Section 301(a).
6(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
 
7    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
8    Sec. 304. Business income of persons other than residents.
9    (a) In general. The business income of a person other than
10a resident shall be allocated to this State if such person's
11business income is derived solely from this State. If a person
12other than a resident derives business income from this State
13and one or more other states, then, for tax years ending on or
14before December 30, 1998, and except as otherwise provided by
15this Section, such person's business income shall be
16apportioned to this State by multiplying the income by a
17fraction, the numerator of which is the sum of the property
18factor (if any), the payroll factor (if any) and 200% of the
19sales factor (if any), and the denominator of which is 4
20reduced by the number of factors other than the sales factor
21which have a denominator of zero and by an additional 2 if the
22sales factor has a denominator of zero. For tax years ending on
23or after December 31, 1998, and except as otherwise provided by
24this Section, persons other than residents who derive business
25income from this State and one or more other states shall

 

 

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1compute their apportionment factor by weighting their
2property, payroll, and sales factors as provided in subsection
3(h) of this Section.
4    (1) Property factor.
5        (A) The property factor is a fraction, the numerator of
6    which is the average value of the person's real and
7    tangible personal property owned or rented and used in the
8    trade or business in this State during the taxable year and
9    the denominator of which is the average value of all the
10    person's real and tangible personal property owned or
11    rented and used in the trade or business during the taxable
12    year.
13        (B) Property owned by the person is valued at its
14    original cost. Property rented by the person is valued at 8
15    times the net annual rental rate. Net annual rental rate is
16    the annual rental rate paid by the person less any annual
17    rental rate received by the person from sub-rentals.
18        (C) The average value of property shall be determined
19    by averaging the values at the beginning and ending of the
20    taxable year but the Director may require the averaging of
21    monthly values during the taxable year if reasonably
22    required to reflect properly the average value of the
23    person's property.
24    (2) Payroll factor.
25        (A) The payroll factor is a fraction, the numerator of
26    which is the total amount paid in this State during the

 

 

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1    taxable year by the person for compensation, and the
2    denominator of which is the total compensation paid
3    everywhere during the taxable year.
4        (B) Compensation is paid in this State if:
5            (i) The individual's service is performed entirely
6        within this State;
7            (ii) The individual's service is performed both
8        within and without this State, but the service
9        performed without this State is incidental to the
10        individual's service performed within this State; or
11            (iii) Some of the service is performed within this
12        State and either the base of operations, or if there is
13        no base of operations, the place from which the service
14        is directed or controlled is within this State, or the
15        base of operations or the place from which the service
16        is directed or controlled is not in any state in which
17        some part of the service is performed, but the
18        individual's residence is in this State.
19            (iv) Compensation paid to nonresident professional
20        athletes.
21            (a) General. The Illinois source income of a
22        nonresident individual who is a member of a
23        professional athletic team includes the portion of the
24        individual's total compensation for services performed
25        as a member of a professional athletic team during the
26        taxable year which the number of duty days spent within

 

 

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1        this State performing services for the team in any
2        manner during the taxable year bears to the total
3        number of duty days spent both within and without this
4        State during the taxable year.
5            (b) Travel days. Travel days that do not involve
6        either a game, practice, team meeting, or other similar
7        team event are not considered duty days spent in this
8        State. However, such travel days are considered in the
9        total duty days spent both within and without this
10        State.
11            (c) Definitions. For purposes of this subpart
12        (iv):
13                (1) The term "professional athletic team"
14            includes, but is not limited to, any professional
15            baseball, basketball, football, soccer, or hockey
16            team.
17                (2) The term "member of a professional
18            athletic team" includes those employees who are
19            active players, players on the disabled list, and
20            any other persons required to travel and who travel
21            with and perform services on behalf of a
22            professional athletic team on a regular basis.
23            This includes, but is not limited to, coaches,
24            managers, and trainers.
25                (3) Except as provided in items (C) and (D) of
26            this subpart (3), the term "duty days" means all

 

 

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

 

 

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1                    (C) Duty days for any person who joins a
2                team during the period from the beginning of
3                the professional athletic team's official
4                pre-season training period through the last
5                game in which the team competes, or is
6                scheduled to compete, shall begin on the day
7                that person joins the team. Conversely, duty
8                days for any person who leaves a team during
9                this period shall end on the day that person
10                leaves the team. Where a person switches teams
11                during a taxable year, a separate duty-day
12                calculation shall be made for the period the
13                person was with each team.
14                    (D) Days for which a member of a
15                professional athletic team is not compensated
16                and is not performing services for the team in
17                any manner, including days when such member of
18                a professional athletic team has been
19                suspended without pay and prohibited from
20                performing any services for the team, shall not
21                be treated as duty days.
22                    (E) Days for which a member of a
23                professional athletic team is on the disabled
24                list and does not conduct rehabilitation
25                activities at facilities of the team, and is
26                not otherwise performing services for the team

 

 

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1                in Illinois, shall not be considered duty days
2                spent in this State. All days on the disabled
3                list, however, are considered to be included in
4                total duty days spent both within and without
5                this State.
6                (4) The term "total compensation for services
7            performed as a member of a professional athletic
8            team" means the total compensation received during
9            the taxable year for services performed:
10                    (A) from the beginning of the official
11                pre-season training period through the last
12                game in which the team competes or is scheduled
13                to compete during that taxable year; and
14                    (B) during the taxable year on a date which
15                does not fall within the foregoing period
16                (e.g., participation in instructional leagues,
17                the "All Star Game", or promotional caravans).
18                This compensation shall include, but is not
19            limited to, salaries, wages, bonuses as described
20            in this subpart, and any other type of compensation
21            paid during the taxable year to a member of a
22            professional athletic team for services performed
23            in that year. This compensation does not include
24            strike benefits, severance pay, termination pay,
25            contract or option year buy-out payments,
26            expansion or relocation payments, or any other

 

 

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1            payments not related to services performed for the
2            team.
3                For purposes of this subparagraph, "bonuses"
4            included in "total compensation for services
5            performed as a member of a professional athletic
6            team" subject to the allocation described in
7            Section 302(c)(1) are: bonuses earned as a result
8            of play (i.e., performance bonuses) during the
9            season, including bonuses paid for championship,
10            playoff or "bowl" games played by a team, or for
11            selection to all-star league or other honorary
12            positions; and bonuses paid for signing a
13            contract, unless the payment of the signing bonus
14            is not conditional upon the signee playing any
15            games for the team or performing any subsequent
16            services for the team or even making the team, the
17            signing bonus is payable separately from the
18            salary and any other compensation, and the signing
19            bonus is nonrefundable.
20    (3) Sales factor.
21        (A) The sales factor is a fraction, the numerator of
22    which is the total sales of the person in this State during
23    the taxable year, and the denominator of which is the total
24    sales of the person everywhere during the taxable year.
25        (B) Sales of tangible personal property are in this
26    State if:

 

 

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1            (i) The property is delivered or shipped to a
2        purchaser, other than the United States government,
3        within this State regardless of the f. o. b. point or
4        other conditions of the sale; or
5            (ii) The property is shipped from an office, store,
6        warehouse, factory or other place of storage in this
7        State and either the purchaser is the United States
8        government or the person is not taxable in the state of
9        the purchaser; provided, however, that premises owned
10        or leased by a person who has independently contracted
11        with the seller for the printing of newspapers,
12        periodicals or books shall not be deemed to be an
13        office, store, warehouse, factory or other place of
14        storage for purposes of this Section. Sales of tangible
15        personal property are not in this State if the seller
16        and purchaser would be members of the same unitary
17        business group but for the fact that either the seller
18        or purchaser is a person with 80% or more of total
19        business activity outside of the United States and the
20        property is purchased for resale.
21        (B-1) Patents, copyrights, trademarks, and similar
22    items of intangible personal property.
23            (i) Gross receipts from the licensing, sale, or
24        other disposition of a patent, copyright, trademark,
25        or similar item of intangible personal property, other
26        than gross receipts governed by paragraph (B-7) of this

 

 

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1        item (3), are in this State to the extent the item is
2        utilized in this State during the year the gross
3        receipts are included in gross income.
4            (ii) Place of utilization.
5                (I) A patent is utilized in a state to the
6            extent that it is employed in production,
7            fabrication, manufacturing, or other processing in
8            the state or to the extent that a patented product
9            is produced in the state. If a patent is utilized
10            in more than one state, the extent to which it is
11            utilized in any one state shall be a fraction equal
12            to the gross receipts of the licensee or purchaser
13            from sales or leases of items produced,
14            fabricated, manufactured, or processed within that
15            state using the patent and of patented items
16            produced within that state, divided by the total of
17            such gross receipts for all states in which the
18            patent is utilized.
19                (II) A copyright is utilized in a state to the
20            extent that printing or other publication
21            originates in the state. If a copyright is utilized
22            in more than one state, the extent to which it is
23            utilized in any one state shall be a fraction equal
24            to the gross receipts from sales or licenses of
25            materials printed or published in that state
26            divided by the total of such gross receipts for all

 

 

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1            states in which the copyright is utilized.
2                (III) Trademarks and other items of intangible
3            personal property governed by this paragraph (B-1)
4            are utilized in the state in which the commercial
5            domicile of the licensee or purchaser is located.
6            (iii) If the state of utilization of an item of
7        property governed by this paragraph (B-1) cannot be
8        determined from the taxpayer's books and records or
9        from the books and records of any person related to the
10        taxpayer within the meaning of Section 267(b) of the
11        Internal Revenue Code, 26 U.S.C. 267, the gross
12        receipts attributable to that item shall be excluded
13        from both the numerator and the denominator of the
14        sales factor.
15        (B-2) Gross receipts from the license, sale, or other
16    disposition of patents, copyrights, trademarks, and
17    similar items of intangible personal property, other than
18    gross receipts governed by paragraph (B-7) of this item
19    (3), may be included in the numerator or denominator of the
20    sales factor only if gross receipts from licenses, sales,
21    or other disposition of such items comprise more than 50%
22    of the taxpayer's total gross receipts included in gross
23    income during the tax year and during each of the 2
24    immediately preceding tax years; provided that, when a
25    taxpayer is a member of a unitary business group, such
26    determination shall be made on the basis of the gross

 

 

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1    receipts of the entire unitary business group.
2        (B-5) For taxable years ending on or after December 31,
3    2008, except as provided in subsections (ii) through (vii),
4    receipts from the sale of telecommunications service or
5    mobile telecommunications service are in this State if the
6    customer's service address is in this State.
7            (i) For purposes of this subparagraph (B-5), the
8        following terms have the following meanings:
9            "Ancillary services" means services that are
10        associated with or incidental to the provision of
11        "telecommunications services", including but not
12        limited to "detailed telecommunications billing",
13        "directory assistance", "vertical service", and "voice
14        mail services".
15            "Air-to-Ground Radiotelephone service" means a
16        radio service, as that term is defined in 47 CFR 22.99,
17        in which common carriers are authorized to offer and
18        provide radio telecommunications service for hire to
19        subscribers in aircraft.
20            "Call-by-call Basis" means any method of charging
21        for telecommunications services where the price is
22        measured by individual calls.
23            "Communications Channel" means a physical or
24        virtual path of communications over which signals are
25        transmitted between or among customer channel
26        termination points.

 

 

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1            "Conference bridging service" means an "ancillary
2        service" that links two or more participants of an
3        audio or video conference call and may include the
4        provision of a telephone number. "Conference bridging
5        service" does not include the "telecommunications
6        services" used to reach the conference bridge.
7            "Customer Channel Termination Point" means the
8        location where the customer either inputs or receives
9        the communications.
10            "Detailed telecommunications billing service"
11        means an "ancillary service" of separately stating
12        information pertaining to individual calls on a
13        customer's billing statement.
14            "Directory assistance" means an "ancillary
15        service" of providing telephone number information,
16        and/or address information.
17            "Home service provider" means the facilities based
18        carrier or reseller with which the customer contracts
19        for the provision of mobile telecommunications
20        services.
21            "Mobile telecommunications service" means
22        commercial mobile radio service, as defined in Section
23        20.3 of Title 47 of the Code of Federal Regulations as
24        in effect on June 1, 1999.
25            "Place of primary use" means the street address
26        representative of where the customer's use of the

 

 

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1        telecommunications service primarily occurs, which
2        must be the residential street address or the primary
3        business street address of the customer. In the case of
4        mobile telecommunications services, "place of primary
5        use" must be within the licensed service area of the
6        home service provider.
7            "Post-paid telecommunication service" means the
8        telecommunications service obtained by making a
9        payment on a call-by-call basis either through the use
10        of a credit card or payment mechanism such as a bank
11        card, travel card, credit card, or debit card, or by
12        charge made to a telephone number which is not
13        associated with the origination or termination of the
14        telecommunications service. A post-paid calling
15        service includes telecommunications service, except a
16        prepaid wireless calling service, that would be a
17        prepaid calling service except it is not exclusively a
18        telecommunication service.
19            "Prepaid telecommunication service" means the
20        right to access exclusively telecommunications
21        services, which must be paid for in advance and which
22        enables the origination of calls using an access number
23        or authorization code, whether manually or
24        electronically dialed, and that is sold in
25        predetermined units or dollars of which the number
26        declines with use in a known amount.

 

 

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1            "Prepaid Mobile telecommunication service" means a
2        telecommunications service that provides the right to
3        utilize mobile wireless service as well as other
4        non-telecommunication services, including but not
5        limited to ancillary services, which must be paid for
6        in advance that is sold in predetermined units or
7        dollars of which the number declines with use in a
8        known amount.
9            "Private communication service" means a
10        telecommunication service that entitles the customer
11        to exclusive or priority use of a communications
12        channel or group of channels between or among
13        termination points, regardless of the manner in which
14        such channel or channels are connected, and includes
15        switching capacity, extension lines, stations, and any
16        other associated services that are provided in
17        connection with the use of such channel or channels.
18            "Service address" means:
19                (a) The location of the telecommunications
20            equipment to which a customer's call is charged and
21            from which the call originates or terminates,
22            regardless of where the call is billed or paid;
23                (b) If the location in line (a) is not known,
24            service address means the origination point of the
25            signal of the telecommunications services first
26            identified by either the seller's

 

 

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1            telecommunications system or in information
2            received by the seller from its service provider
3            where the system used to transport such signals is
4            not that of the seller; and
5                (c) If the locations in line (a) and line (b)
6            are not known, the service address means the
7            location of the customer's place of primary use.
8            "Telecommunications service" means the electronic
9        transmission, conveyance, or routing of voice, data,
10        audio, video, or any other information or signals to a
11        point, or between or among points. The term
12        "telecommunications service" includes such
13        transmission, conveyance, or routing in which computer
14        processing applications are used to act on the form,
15        code or protocol of the content for purposes of
16        transmission, conveyance or routing without regard to
17        whether such service is referred to as voice over
18        Internet protocol services or is classified by the
19        Federal Communications Commission as enhanced or value
20        added. "Telecommunications service" does not include:
21                (a) Data processing and information services
22            that allow data to be generated, acquired, stored,
23            processed, or retrieved and delivered by an
24            electronic transmission to a purchaser when such
25            purchaser's primary purpose for the underlying
26            transaction is the processed data or information;

 

 

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1                (b) Installation or maintenance of wiring or
2            equipment on a customer's premises;
3                (c) Tangible personal property;
4                (d) Advertising, including but not limited to
5            directory advertising; .
6                (e) Billing and collection services provided
7            to third parties;
8                (f) Internet access service;
9                (g) Radio and television audio and video
10            programming services, regardless of the medium,
11            including the furnishing of transmission,
12            conveyance and routing of such services by the
13            programming service provider. Radio and television
14            audio and video programming services shall include
15            but not be limited to cable service as defined in
16            47 USC 522(6) and audio and video programming
17            services delivered by commercial mobile radio
18            service providers, as defined in 47 CFR 20.3;
19                (h) "Ancillary services"; or
20                (i) Digital products "delivered
21            electronically", including but not limited to
22            software, music, video, reading materials or ring
23            tones.
24            "Vertical service" means an "ancillary service"
25        that is offered in connection with one or more
26        "telecommunications services", which offers advanced

 

 

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1        calling features that allow customers to identify
2        callers and to manage multiple calls and call
3        connections, including "conference bridging services".
4            "Voice mail service" means an "ancillary service"
5        that enables the customer to store, send or receive
6        recorded messages. "Voice mail service" does not
7        include any "vertical services" that the customer may
8        be required to have in order to utilize the "voice mail
9        service".
10            (ii) Receipts from the sale of telecommunications
11        service sold on an individual call-by-call basis are in
12        this State if either of the following applies:
13                (a) The call both originates and terminates in
14            this State.
15                (b) The call either originates or terminates
16            in this State and the service address is located in
17            this State.
18            (iii) Receipts from the sale of postpaid
19        telecommunications service at retail are in this State
20        if the origination point of the telecommunication
21        signal, as first identified by the service provider's
22        telecommunication system or as identified by
23        information received by the seller from its service
24        provider if the system used to transport
25        telecommunication signals is not the seller's, is
26        located in this State.

 

 

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1            (iv) Receipts from the sale of prepaid
2        telecommunications service or prepaid mobile
3        telecommunications service at retail are in this State
4        if the purchaser obtains the prepaid card or similar
5        means of conveyance at a location in this State.
6        Receipts from recharging a prepaid telecommunications
7        service or mobile telecommunications service is in
8        this State if the purchaser's billing information
9        indicates a location in this State.
10            (v) Receipts from the sale of private
11        communication services are in this State as follows:
12                (a) 100% of receipts from charges imposed at
13            each channel termination point in this State.
14                (b) 100% of receipts from charges for the total
15            channel mileage between each channel termination
16            point in this State.
17                (c) 50% of the total receipts from charges for
18            service segments when those segments are between 2
19            customer channel termination points, 1 of which is
20            located in this State and the other is located
21            outside of this State, which segments are
22            separately charged.
23                (d) The receipts from charges for service
24            segments with a channel termination point located
25            in this State and in two or more other states, and
26            which segments are not separately billed, are in

 

 

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1            this State based on a percentage determined by
2            dividing the number of customer channel
3            termination points in this State by the total
4            number of customer channel termination points.
5            (vi) Receipts from charges for ancillary services
6        for telecommunications service sold to customers at
7        retail are in this State if the customer's primary
8        place of use of telecommunications services associated
9        with those ancillary services is in this State. If the
10        seller of those ancillary services cannot determine
11        where the associated telecommunications are located,
12        then the ancillary services shall be based on the
13        location of the purchaser.
14            (vii) Receipts to access a carrier's network or
15        from the sale of telecommunication services or
16        ancillary services for resale are in this State as
17        follows:
18                (a) 100% of the receipts from access fees
19            attributable to intrastate telecommunications
20            service that both originates and terminates in
21            this State.
22                (b) 50% of the receipts from access fees
23            attributable to interstate telecommunications
24            service if the interstate call either originates
25            or terminates in this State.
26                (c) 100% of the receipts from interstate end

 

 

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1            user access line charges, if the customer's
2            service address is in this State. As used in this
3            subdivision, "interstate end user access line
4            charges" includes, but is not limited to, the
5            surcharge approved by the federal communications
6            commission and levied pursuant to 47 CFR 69.
7                (d) Gross receipts from sales of
8            telecommunication services or from ancillary
9            services for telecommunications services sold to
10            other telecommunication service providers for
11            resale shall be sourced to this State using the
12            apportionment concepts used for non-resale
13            receipts of telecommunications services if the
14            information is readily available to make that
15            determination. If the information is not readily
16            available, then the taxpayer may use any other
17            reasonable and consistent method.
18        (B-7) For taxable years ending on or after December 31,
19    2008, receipts from the sale of broadcasting services are
20    in this State if the broadcasting services are received in
21    this State. For purposes of this paragraph (B-7), the
22    following terms have the following meanings:
23            "Advertising revenue" means consideration received
24        by the taxpayer in exchange for broadcasting services
25        or allowing the broadcasting of commercials or
26        announcements in connection with the broadcasting of

 

 

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1        film or radio programming, from sponsorships of the
2        programming, or from product placements in the
3        programming.
4            "Audience factor" means the ratio that the
5        audience or subscribers located in this State of a
6        station, a network, or a cable system bears to the
7        total audience or total subscribers for that station,
8        network, or cable system. The audience factor for film
9        or radio programming shall be determined by reference
10        to the books and records of the taxpayer or by
11        reference to published rating statistics provided the
12        method used by the taxpayer is consistently used from
13        year to year for this purpose and fairly represents the
14        taxpayer's activity in this State.
15            "Broadcast" or "broadcasting" or "broadcasting
16        services" means the transmission or provision of film
17        or radio programming, whether through the public
18        airwaves, by cable, by direct or indirect satellite
19        transmission, or by any other means of communication,
20        either through a station, a network, or a cable system.
21            "Film" or "film programming" means the broadcast
22        on television of any and all performances, events, or
23        productions, including but not limited to news,
24        sporting events, plays, stories, or other literary,
25        commercial, educational, or artistic works, either
26        live or through the use of video tape, disc, or any

 

 

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1        other type of format or medium. Each episode of a
2        series of films produced for television shall
3        constitute separate "film" notwithstanding that the
4        series relates to the same principal subject and is
5        produced during one or more tax periods.
6            "Radio" or "radio programming" means the broadcast
7        on radio of any and all performances, events, or
8        productions, including but not limited to news,
9        sporting events, plays, stories, or other literary,
10        commercial, educational, or artistic works, either
11        live or through the use of an audio tape, disc, or any
12        other format or medium. Each episode in a series of
13        radio programming produced for radio broadcast shall
14        constitute a separate "radio programming"
15        notwithstanding that the series relates to the same
16        principal subject and is produced during one or more
17        tax periods.
18                (i) In the case of advertising revenue from
19            broadcasting, the customer is the advertiser and
20            the service is received in this State if the
21            commercial domicile of the advertiser is in this
22            State.
23                (ii) In the case where film or radio
24            programming is broadcast by a station, a network,
25            or a cable system for a fee or other remuneration
26            received from the recipient of the broadcast, the

 

 

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1            portion of the service that is received in this
2            State is measured by the portion of the recipients
3            of the broadcast located in this State.
4            Accordingly, the fee or other remuneration for
5            such service that is included in the Illinois
6            numerator of the sales factor is the total of those
7            fees or other remuneration received from
8            recipients in Illinois. For purposes of this
9            paragraph, a taxpayer may determine the location
10            of the recipients of its broadcast using the
11            address of the recipient shown in its contracts
12            with the recipient or using the billing address of
13            the recipient in the taxpayer's records.
14                (iii) In the case where film or radio
15            programming is broadcast by a station, a network,
16            or a cable system for a fee or other remuneration
17            from the person providing the programming, the
18            portion of the broadcast service that is received
19            by such station, network, or cable system in this
20            State is measured by the portion of recipients of
21            the broadcast located in this State. Accordingly,
22            the amount of revenue related to such an
23            arrangement that is included in the Illinois
24            numerator of the sales factor is the total fee or
25            other total remuneration from the person providing
26            the programming related to that broadcast

 

 

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1            multiplied by the Illinois audience factor for
2            that broadcast.
3                (iv) In the case where film or radio
4            programming is provided by a taxpayer that is a
5            network or station to a customer for broadcast in
6            exchange for a fee or other remuneration from that
7            customer the broadcasting service is received at
8            the location of the office of the customer from
9            which the services were ordered in the regular
10            course of the customer's trade or business.
11            Accordingly, in such a case the revenue derived by
12            the taxpayer that is included in the taxpayer's
13            Illinois numerator of the sales factor is the
14            revenue from such customers who receive the
15            broadcasting service in Illinois.
16                (v) In the case where film or radio programming
17            is provided by a taxpayer that is not a network or
18            station to another person for broadcasting in
19            exchange for a fee or other remuneration from that
20            person, the broadcasting service is received at
21            the location of the office of the customer from
22            which the services were ordered in the regular
23            course of the customer's trade or business.
24            Accordingly, in such a case the revenue derived by
25            the taxpayer that is included in the taxpayer's
26            Illinois numerator of the sales factor is the

 

 

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1            revenue from such customers who receive the
2            broadcasting service in Illinois.
3        (B-8) Gross receipts from winnings under the Illinois
4    Lottery Law from the assignment of a prize under Section
5    13.1 of the Illinois Lottery Law are received in this
6    State. This paragraph (B-8) applies only to taxable years
7    ending on or after December 31, 2013.
8        (B-9) For taxable years ending on or after December 31,
9    2017, gross receipts from winnings from pari-mutuel
10    wagering conducted at a wagering facility licensed under
11    the Illinois Horse Racing Act of 1975 or from winnings from
12    gambling games conducted on a riverboat or in a casino or
13    electronic gaming facility licensed under the Illinois
14    Gambling Act are in this State.
15        (C) For taxable years ending before December 31, 2008,
16    sales, other than sales governed by paragraphs (B), (B-1),
17    (B-2), and (B-8) are in this State if:
18            (i) The income-producing activity is performed in
19        this State; or
20            (ii) The income-producing activity is performed
21        both within and without this State and a greater
22        proportion of the income-producing activity is
23        performed within this State than without this State,
24        based on performance costs.
25        (C-5) For taxable years ending on or after December 31,
26    2008, sales, other than sales governed by paragraphs (B),

 

 

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1    (B-1), (B-2), (B-5), and (B-7), are in this State if any of
2    the following criteria are met:
3            (i) Sales from the sale or lease of real property
4        are in this State if the property is located in this
5        State.
6            (ii) Sales from the lease or rental of tangible
7        personal property are in this State if the property is
8        located in this State during the rental period. Sales
9        from the lease or rental of tangible personal property
10        that is characteristically moving property, including,
11        but not limited to, motor vehicles, rolling stock,
12        aircraft, vessels, or mobile equipment are in this
13        State to the extent that the property is used in this
14        State.
15            (iii) In the case of interest, net gains (but not
16        less than zero) and other items of income from
17        intangible personal property, the sale is in this State
18        if:
19                (a) in the case of a taxpayer who is a dealer
20            in the item of intangible personal property within
21            the meaning of Section 475 of the Internal Revenue
22            Code, the income or gain is received from a
23            customer in this State. For purposes of this
24            subparagraph, a customer is in this State if the
25            customer is an individual, trust or estate who is a
26            resident of this State and, for all other

 

 

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1            customers, if the customer's commercial domicile
2            is in this State. Unless the dealer has actual
3            knowledge of the residence or commercial domicile
4            of a customer during a taxable year, the customer
5            shall be deemed to be a customer in this State if
6            the billing address of the customer, as shown in
7            the records of the dealer, is in this State; or
8                (b) in all other cases, if the
9            income-producing activity of the taxpayer is
10            performed in this State or, if the
11            income-producing activity of the taxpayer is
12            performed both within and without this State, if a
13            greater proportion of the income-producing
14            activity of the taxpayer is performed within this
15            State than in any other state, based on performance
16            costs.
17            (iv) Sales of services are in this State if the
18        services are received in this State. For the purposes
19        of this section, gross receipts from the performance of
20        services provided to a corporation, partnership, or
21        trust may only be attributed to a state where that
22        corporation, partnership, or trust has a fixed place of
23        business. If the state where the services are received
24        is not readily determinable or is a state where the
25        corporation, partnership, or trust receiving the
26        service does not have a fixed place of business, the

 

 

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1        services shall be deemed to be received at the location
2        of the office of the customer from which the services
3        were ordered in the regular course of the customer's
4        trade or business. If the ordering office cannot be
5        determined, the services shall be deemed to be received
6        at the office of the customer to which the services are
7        billed. If the taxpayer is not taxable in the state in
8        which the services are received, the sale must be
9        excluded from both the numerator and the denominator of
10        the sales factor. The Department shall adopt rules
11        prescribing where specific types of service are
12        received, including, but not limited to, publishing,
13        and utility service.
14        (D) For taxable years ending on or after December 31,
15    1995, the following items of income shall not be included
16    in the numerator or denominator of the sales factor:
17    dividends; amounts included under Section 78 of the
18    Internal Revenue Code; and Subpart F income as defined in
19    Section 952 of the Internal Revenue Code. No inference
20    shall be drawn from the enactment of this paragraph (D) in
21    construing this Section for taxable years ending before
22    December 31, 1995.
23        (E) Paragraphs (B-1) and (B-2) shall apply to tax years
24    ending on or after December 31, 1999, provided that a
25    taxpayer may elect to apply the provisions of these
26    paragraphs to prior tax years. Such election shall be made

 

 

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1    in the form and manner prescribed by the Department, shall
2    be irrevocable, and shall apply to all tax years; provided
3    that, if a taxpayer's Illinois income tax liability for any
4    tax year, as assessed under Section 903 prior to January 1,
5    1999, was computed in a manner contrary to the provisions
6    of paragraphs (B-1) or (B-2), no refund shall be payable to
7    the taxpayer for that tax year to the extent such refund is
8    the result of applying the provisions of paragraph (B-1) or
9    (B-2) retroactively. In the case of a unitary business
10    group, such election shall apply to all members of such
11    group for every tax year such group is in existence, but
12    shall not apply to any taxpayer for any period during which
13    that taxpayer is not a member of such group.
14    (b) Insurance companies.
15        (1) In general. Except as otherwise provided by
16    paragraph (2), business income of an insurance company for
17    a taxable year shall be apportioned to this State by
18    multiplying such income by a fraction, the numerator of
19    which is the direct premiums written for insurance upon
20    property or risk in this State, and the denominator of
21    which is the direct premiums written for insurance upon
22    property or risk everywhere. For purposes of this
23    subsection, the term "direct premiums written" means the
24    total amount of direct premiums written, assessments and
25    annuity considerations as reported for the taxable year on
26    the annual statement filed by the company with the Illinois

 

 

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1    Director of Insurance in the form approved by the National
2    Convention of Insurance Commissioners or such other form as
3    may be prescribed in lieu thereof.
4        (2) Reinsurance. If the principal source of premiums
5    written by an insurance company consists of premiums for
6    reinsurance accepted by it, the business income of such
7    company shall be apportioned to this State by multiplying
8    such income by a fraction, the numerator of which is the
9    sum of (i) direct premiums written for insurance upon
10    property or risk in this State, plus (ii) premiums written
11    for reinsurance accepted in respect of property or risk in
12    this State, and the denominator of which is the sum of
13    (iii) direct premiums written for insurance upon property
14    or risk everywhere, plus (iv) premiums written for
15    reinsurance accepted in respect of property or risk
16    everywhere. For purposes of this paragraph, premiums
17    written for reinsurance accepted in respect of property or
18    risk in this State, whether or not otherwise determinable,
19    may, at the election of the company, be determined on the
20    basis of the proportion which premiums written for
21    reinsurance accepted from companies commercially domiciled
22    in Illinois bears to premiums written for reinsurance
23    accepted from all sources, or, alternatively, in the
24    proportion which the sum of the direct premiums written for
25    insurance upon property or risk in this State by each
26    ceding company from which reinsurance is accepted bears to

 

 

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1    the sum of the total direct premiums written by each such
2    ceding company for the taxable year. The election made by a
3    company under this paragraph for its first taxable year
4    ending on or after December 31, 2011, shall be binding for
5    that company for that taxable year and for all subsequent
6    taxable years, and may be altered only with the written
7    permission of the Department, which shall not be
8    unreasonably withheld.
9    (c) Financial organizations.
10        (1) In general. For taxable years ending before
11    December 31, 2008, business income of a financial
12    organization shall be apportioned to this State by
13    multiplying such income by a fraction, the numerator of
14    which is its business income from sources within this
15    State, and the denominator of which is its business income
16    from all sources. For the purposes of this subsection, the
17    business income of a financial organization from sources
18    within this State is the sum of the amounts referred to in
19    subparagraphs (A) through (E) following, but excluding the
20    adjusted income of an international banking facility as
21    determined in paragraph (2):
22            (A) Fees, commissions or other compensation for
23        financial services rendered within this State;
24            (B) Gross profits from trading in stocks, bonds or
25        other securities managed within this State;
26            (C) Dividends, and interest from Illinois

 

 

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1        customers, which are received within this State;
2            (D) Interest charged to customers at places of
3        business maintained within this State for carrying
4        debit balances of margin accounts, without deduction
5        of any costs incurred in carrying such accounts; and
6            (E) Any other gross income resulting from the
7        operation as a financial organization within this
8        State. In computing the amounts referred to in
9        paragraphs (A) through (E) of this subsection, any
10        amount received by a member of an affiliated group
11        (determined under Section 1504(a) of the Internal
12        Revenue Code but without reference to whether any such
13        corporation is an "includible corporation" under
14        Section 1504(b) of the Internal Revenue Code) from
15        another member of such group shall be included only to
16        the extent such amount exceeds expenses of the
17        recipient directly related thereto.
18        (2) International Banking Facility. For taxable years
19    ending before December 31, 2008:
20            (A) Adjusted Income. The adjusted income of an
21        international banking facility is its income reduced
22        by the amount of the floor amount.
23            (B) Floor Amount. The floor amount shall be the
24        amount, if any, determined by multiplying the income of
25        the international banking facility by a fraction, not
26        greater than one, which is determined as follows:

 

 

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

 

 

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1            aggregate, determined on a quarterly basis, of the
2            international banking facility's loans to banks in
3            foreign countries, to foreign domiciled borrowers
4            (except where secured primarily by real estate)
5            and to foreign governments and other foreign
6            official institutions, which were recorded in its
7            financial accounts for the current taxable year.
8            (C) Change to Consolidated Report of Condition and
9        in Qualification. In the event the Consolidated Report
10        of Condition which is filed with the Federal Deposit
11        Insurance Corporation and other regulatory authorities
12        is altered so that the information required for
13        determining the floor amount is not found on Schedule
14        A, lines 2.c., 5.b. and 7.a., the financial institution
15        shall notify the Department and the Department may, by
16        regulations or otherwise, prescribe or authorize the
17        use of an alternative source for such information. The
18        financial institution shall also notify the Department
19        should its international banking facility fail to
20        qualify as such, in whole or in part, or should there
21        be any amendment or change to the Consolidated Report
22        of Condition, as originally filed, to the extent such
23        amendment or change alters the information used in
24        determining the floor amount.
25        (3) For taxable years ending on or after December 31,
26    2008, the business income of a financial organization shall

 

 

SB0007- 172 -LRB100 06307 AMC 16345 b

1    be apportioned to this State by multiplying such income by
2    a fraction, the numerator of which is its gross receipts
3    from sources in this State or otherwise attributable to
4    this State's marketplace and the denominator of which is
5    its gross receipts everywhere during the taxable year.
6    "Gross receipts" for purposes of this subparagraph (3)
7    means gross income, including net taxable gain on
8    disposition of assets, including securities and money
9    market instruments, when derived from transactions and
10    activities in the regular course of the financial
11    organization's trade or business. The following examples
12    are illustrative:
13            (i) Receipts from the lease or rental of real or
14        tangible personal property are in this State if the
15        property is located in this State during the rental
16        period. Receipts from the lease or rental of tangible
17        personal property that is characteristically moving
18        property, including, but not limited to, motor
19        vehicles, rolling stock, aircraft, vessels, or mobile
20        equipment are from sources in this State to the extent
21        that the property is used in this State.
22            (ii) Interest income, commissions, fees, gains on
23        disposition, and other receipts from assets in the
24        nature of loans that are secured primarily by real
25        estate or tangible personal property are from sources
26        in this State if the security is located in this State.

 

 

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1            (iii) Interest income, commissions, fees, gains on
2        disposition, and other receipts from consumer loans
3        that are not secured by real or tangible personal
4        property are from sources in this State if the debtor
5        is a resident of this State.
6            (iv) Interest income, commissions, fees, gains on
7        disposition, and other receipts from commercial loans
8        and installment obligations that are not secured by
9        real or tangible personal property are from sources in
10        this State if the proceeds of the loan are to be
11        applied in this State. If it cannot be determined where
12        the funds are to be applied, the income and receipts
13        are from sources in this State if the office of the
14        borrower from which the loan was negotiated in the
15        regular course of business is located in this State. If
16        the location of this office cannot be determined, the
17        income and receipts shall be excluded from the
18        numerator and denominator of the sales factor.
19            (v) Interest income, fees, gains on disposition,
20        service charges, merchant discount income, and other
21        receipts from credit card receivables are from sources
22        in this State if the card charges are regularly billed
23        to a customer in this State.
24            (vi) Receipts from the performance of services,
25        including, but not limited to, fiduciary, advisory,
26        and brokerage services, are in this State if the

 

 

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1        services are received in this State within the meaning
2        of subparagraph (a)(3)(C-5)(iv) of this Section.
3            (vii) Receipts from the issuance of travelers
4        checks and money orders are from sources in this State
5        if the checks and money orders are issued from a
6        location within this State.
7            (viii) Receipts from investment assets and
8        activities and trading assets and activities are
9        included in the receipts factor as follows:
10                (1) Interest, dividends, net gains (but not
11            less than zero) and other income from investment
12            assets and activities from trading assets and
13            activities shall be included in the receipts
14            factor. Investment assets and activities and
15            trading assets and activities include but are not
16            limited to: investment securities; trading account
17            assets; federal funds; securities purchased and
18            sold under agreements to resell or repurchase;
19            options; futures contracts; forward contracts;
20            notional principal contracts such as swaps;
21            equities; and foreign currency transactions. With
22            respect to the investment and trading assets and
23            activities described in subparagraphs (A) and (B)
24            of this paragraph, the receipts factor shall
25            include the amounts described in such
26            subparagraphs.

 

 

SB0007- 175 -LRB100 06307 AMC 16345 b

1                    (A) The receipts factor shall include the
2                amount by which interest from federal funds
3                sold and securities purchased under resale
4                agreements exceeds interest expense on federal
5                funds purchased and securities sold under
6                repurchase agreements.
7                    (B) The receipts factor shall include the
8                amount by which interest, dividends, gains and
9                other income from trading assets and
10                activities, including but not limited to
11                assets and activities in the matched book, in
12                the arbitrage book, and foreign currency
13                transactions, exceed amounts paid in lieu of
14                interest, amounts paid in lieu of dividends,
15                and losses from such assets and activities.
16                (2) The numerator of the receipts factor
17            includes interest, dividends, net gains (but not
18            less than zero), and other income from investment
19            assets and activities and from trading assets and
20            activities described in paragraph (1) of this
21            subsection that are attributable to this State.
22                    (A) The amount of interest, dividends, net
23                gains (but not less than zero), and other
24                income from investment assets and activities
25                in the investment account to be attributed to
26                this State and included in the numerator is

 

 

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

 

 

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1                assets and activities in the matched book, in
2                the arbitrage book and foreign currency
3                transactions (but excluding amounts described
4                in subparagraphs (A) or (B) of this paragraph),
5                attributable to this State and included in the
6                numerator is determined by multiplying the
7                amount described in subparagraph (B) of
8                paragraph (1) of this subsection by a fraction,
9                the numerator of which is the gross income from
10                such trading assets and activities which are
11                properly assigned to a fixed place of business
12                of the taxpayer within this State and the
13                denominator of which is the gross income from
14                all such assets and activities.
15                    (D) Properly assigned, for purposes of
16                this paragraph (2) of this subsection, means
17                the investment or trading asset or activity is
18                assigned to the fixed place of business with
19                which it has a preponderance of substantive
20                contacts. An investment or trading asset or
21                activity assigned by the taxpayer to a fixed
22                place of business without the State shall be
23                presumed to have been properly assigned if:
24                        (i) the taxpayer has assigned, in the
25                    regular course of its business, such asset
26                    or activity on its records to a fixed place

 

 

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1                    of business consistent with federal or
2                    state regulatory requirements;
3                        (ii) such assignment on its records is
4                    based upon substantive contacts of the
5                    asset or activity to such fixed place of
6                    business; and
7                        (iii) the taxpayer uses such records
8                    reflecting assignment of such assets or
9                    activities for the filing of all state and
10                    local tax returns for which an assignment
11                    of such assets or activities to a fixed
12                    place of business is required.
13                    (E) The presumption of proper assignment
14                of an investment or trading asset or activity
15                provided in subparagraph (D) of paragraph (2)
16                of this subsection may be rebutted upon a
17                showing by the Department, supported by a
18                preponderance of the evidence, that the
19                preponderance of substantive contacts
20                regarding such asset or activity did not occur
21                at the fixed place of business to which it was
22                assigned on the taxpayer's records. If the
23                fixed place of business that has a
24                preponderance of substantive contacts cannot
25                be determined for an investment or trading
26                asset or activity to which the presumption in

 

 

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1                subparagraph (D) of paragraph (2) of this
2                subsection does not apply or with respect to
3                which that presumption has been rebutted, that
4                asset or activity is properly assigned to the
5                state in which the taxpayer's commercial
6                domicile is located. For purposes of this
7                subparagraph (E), it shall be presumed,
8                subject to rebuttal, that taxpayer's
9                commercial domicile is in the state of the
10                United States or the District of Columbia to
11                which the greatest number of employees are
12                regularly connected with the management of the
13                investment or trading income or out of which
14                they are working, irrespective of where the
15                services of such employees are performed, as of
16                the last day of the taxable year.
17        (4) (Blank).
18        (5) (Blank).
19    (c-1) Federally regulated exchanges. For taxable years
20ending on or after December 31, 2012, business income of a
21federally regulated exchange shall, at the option of the
22federally regulated exchange, be apportioned to this State by
23multiplying such income by a fraction, the numerator of which
24is its business income from sources within this State, and the
25denominator of which is its business income from all sources.
26For purposes of this subsection, the business income within

 

 

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1this State of a federally regulated exchange is the sum of the
2following:
3        (1) Receipts attributable to transactions executed on
4    a physical trading floor if that physical trading floor is
5    located in this State.
6        (2) Receipts attributable to all other matching,
7    execution, or clearing transactions, including without
8    limitation receipts from the provision of matching,
9    execution, or clearing services to another entity,
10    multiplied by (i) for taxable years ending on or after
11    December 31, 2012 but before December 31, 2013, 63.77%; and
12    (ii) for taxable years ending on or after December 31,
13    2013, 27.54%.
14        (3) All other receipts not governed by subparagraphs
15    (1) or (2) of this subsection (c-1), to the extent the
16    receipts would be characterized as "sales in this State"
17    under item (3) of subsection (a) of this Section.
18    "Federally regulated exchange" means (i) a "registered
19entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
20or (C), (ii) an "exchange" or "clearing agency" within the
21meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
22entities regulated under any successor regulatory structure to
23the foregoing, and (iv) all taxpayers who are members of the
24same unitary business group as a federally regulated exchange,
25determined without regard to the prohibition in Section
261501(a)(27) of this Act against including in a unitary business

 

 

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1group taxpayers who are ordinarily required to apportion
2business income under different subsections of this Section;
3provided that this subparagraph (iv) shall apply only if 50% or
4more of the business receipts of the unitary business group
5determined by application of this subparagraph (iv) for the
6taxable year are attributable to the matching, execution, or
7clearing of transactions conducted by an entity described in
8subparagraph (i), (ii), or (iii) of this paragraph.
9    In no event shall the Illinois apportionment percentage
10computed in accordance with this subsection (c-1) for any
11taxpayer for any tax year be less than the Illinois
12apportionment percentage computed under this subsection (c-1)
13for that taxpayer for the first full tax year ending on or
14after December 31, 2013 for which this subsection (c-1) applied
15to the taxpayer.
16    (d) Transportation services. For taxable years ending
17before December 31, 2008, business income derived from
18furnishing transportation services shall be apportioned to
19this State in accordance with paragraphs (1) and (2):
20        (1) Such business income (other than that derived from
21    transportation by pipeline) shall be apportioned to this
22    State by multiplying such income by a fraction, the
23    numerator of which is the revenue miles of the person in
24    this State, and the denominator of which is the revenue
25    miles of the person everywhere. For purposes of this
26    paragraph, a revenue mile is the transportation of 1

 

 

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1    passenger or 1 net ton of freight the distance of 1 mile
2    for a consideration. Where a person is engaged in the
3    transportation of both passengers and freight, the
4    fraction above referred to shall be determined by means of
5    an average of the passenger revenue mile fraction and the
6    freight revenue mile fraction, weighted to reflect the
7    person's
8            (A) relative railway operating income from total
9        passenger and total freight service, as reported to the
10        Interstate Commerce Commission, in the case of
11        transportation by railroad, and
12            (B) relative gross receipts from passenger and
13        freight transportation, in case of transportation
14        other than by railroad.
15        (2) Such business income derived from transportation
16    by pipeline shall be apportioned to this State by
17    multiplying such income by a fraction, the numerator of
18    which is the revenue miles of the person in this State, and
19    the denominator of which is the revenue miles of the person
20    everywhere. For the purposes of this paragraph, a revenue
21    mile is the transportation by pipeline of 1 barrel of oil,
22    1,000 cubic feet of gas, or of any specified quantity of
23    any other substance, the distance of 1 mile for a
24    consideration.
25        (3) For taxable years ending on or after December 31,
26    2008, business income derived from providing

 

 

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1    transportation services other than airline services shall
2    be apportioned to this State by using a fraction, (a) the
3    numerator of which shall be (i) all receipts from any
4    movement or shipment of people, goods, mail, oil, gas, or
5    any other substance (other than by airline) that both
6    originates and terminates in this State, plus (ii) that
7    portion of the person's gross receipts from movements or
8    shipments of people, goods, mail, oil, gas, or any other
9    substance (other than by airline) that originates in one
10    state or jurisdiction and terminates in another state or
11    jurisdiction, that is determined by the ratio that the
12    miles traveled in this State bears to total miles
13    everywhere and (b) the denominator of which shall be all
14    revenue derived from the movement or shipment of people,
15    goods, mail, oil, gas, or any other substance (other than
16    by airline). Where a taxpayer is engaged in the
17    transportation of both passengers and freight, the
18    fraction above referred to shall first be determined
19    separately for passenger miles and freight miles. Then an
20    average of the passenger miles fraction and the freight
21    miles fraction shall be weighted to reflect the taxpayer's:
22            (A) relative railway operating income from total
23        passenger and total freight service, as reported to the
24        Surface Transportation Board, in the case of
25        transportation by railroad; and
26            (B) relative gross receipts from passenger and

 

 

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1        freight transportation, in case of transportation
2        other than by railroad.
3        (4) For taxable years ending on or after December 31,
4    2008, business income derived from furnishing airline
5    transportation services shall be apportioned to this State
6    by multiplying such income by a fraction, the numerator of
7    which is the revenue miles of the person in this State, and
8    the denominator of which is the revenue miles of the person
9    everywhere. For purposes of this paragraph, a revenue mile
10    is the transportation of one passenger or one net ton of
11    freight the distance of one mile for a consideration. If a
12    person is engaged in the transportation of both passengers
13    and freight, the fraction above referred to shall be
14    determined by means of an average of the passenger revenue
15    mile fraction and the freight revenue mile fraction,
16    weighted to reflect the person's relative gross receipts
17    from passenger and freight airline transportation.
18    (e) Combined apportionment. Where 2 or more persons are
19engaged in a unitary business as described in subsection
20(a)(27) of Section 1501, a part of which is conducted in this
21State by one or more members of the group, the business income
22attributable to this State by any such member or members shall
23be apportioned by means of the combined apportionment method.
24    (f) Alternative allocation. If the allocation and
25apportionment provisions of subsections (a) through (e) and of
26subsection (h) do not, for taxable years ending before December

 

 

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131, 2008, fairly represent the extent of a person's business
2activity in this State, or, for taxable years ending on or
3after December 31, 2008, fairly represent the market for the
4person's goods, services, or other sources of business income,
5the person may petition for, or the Director may, without a
6petition, permit or require, in respect of all or any part of
7the person's business activity, if reasonable:
8        (1) Separate accounting;
9        (2) The exclusion of any one or more factors;
10        (3) The inclusion of one or more additional factors
11    which will fairly represent the person's business
12    activities or market in this State; or
13        (4) The employment of any other method to effectuate an
14    equitable allocation and apportionment of the person's
15    business income.
16    (g) Cross reference. For allocation of business income by
17residents, see Section 301(a).
18    (h) For tax years ending on or after December 31, 1998, the
19apportionment factor of persons who apportion their business
20income to this State under subsection (a) shall be equal to:
21        (1) for tax years ending on or after December 31, 1998
22    and before December 31, 1999, 16 2/3% of the property
23    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
24    the sales factor;
25        (2) for tax years ending on or after December 31, 1999
26    and before December 31, 2000, 8 1/3% of the property factor

 

 

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1    plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
2    factor;
3        (3) for tax years ending on or after December 31, 2000,
4    the sales factor.
5If, in any tax year ending on or after December 31, 1998 and
6before December 31, 2000, the denominator of the payroll,
7property, or sales factor is zero, the apportionment factor
8computed in paragraph (1) or (2) of this subsection for that
9year shall be divided by an amount equal to 100% minus the
10percentage weight given to each factor whose denominator is
11equal to zero.
12(Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,
13eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)
 
14    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
15    Sec. 710. Withholding from lottery winnings.
16    (a) In general.
17        (1) Any person making a payment to a resident or
18    nonresident of winnings under the Illinois Lottery Law and
19    not required to withhold Illinois income tax from such
20    payment under Subsection (b) of Section 701 of this Act
21    because those winnings are not subject to Federal income
22    tax withholding, must withhold Illinois income tax from
23    such payment at a rate equal to the percentage tax rate for
24    individuals provided in subsection (b) of Section 201,
25    provided that withholding is not required if such payment

 

 

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1    of winnings is less than $1,000.
2        (2) In the case of an assignment of a lottery prize
3    under Section 13.1 of the Illinois Lottery Law, any person
4    making a payment of the purchase price after December 31,
5    2013, shall withhold from the amount of each payment at a
6    rate equal to the percentage tax rate for individuals
7    provided in subsection (b) of Section 201.
8        (3) Any person making a payment after December 31, 2017
9    to a resident or nonresident of winnings from pari-mutuel
10    wagering conducted at a wagering facility licensed under
11    the Illinois Horse Racing Act of 1975 or from gambling
12    games conducted on a riverboat or in a casino or electronic
13    gaming facility licensed under the Illinois Gambling Act
14    must withhold Illinois income tax from such payment at a
15    rate equal to the percentage tax rate for individuals
16    provided in subsection (b) of Section 201, provided that
17    the person making the payment is required to withhold under
18    Section 3402(q) of the Internal Revenue Code.
19    (b) Credit for taxes withheld. Any amount withheld under
20Subsection (a) shall be a credit against the Illinois income
21tax liability of the person to whom the payment of winnings was
22made for the taxable year in which that person incurred an
23Illinois income tax liability with respect to those winnings.
24(Source: P.A. 98-496, eff. 1-1-14.)
 
25    Section 90-23. The Property Tax Code is amended by adding

 

 

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1Section 15-144 as follows:
 
2    (35 ILCS 200/15-144 new)
3    Sec. 15-144. Chicago Casino Development Authority. All
4property owned by the Chicago Casino Development Authority is
5exempt. Any property owned by the Chicago Casino Development
6Authority and leased to any other entity is not exempt.
 
7    Section 90-24. The Illinois Municipal Code is amended by
8adding Section 8-10-2.6 as follows:
 
9    (65 ILCS 5/8-10-2.6 new)
10    Sec. 8-10-2.6. Chicago Casino Development Authority.
11Except as otherwise provided in the Chicago Casino Development
12Authority Act, this Division 10 applies to purchase orders and
13contracts relating to the Chicago Casino Development
14Authority.
 
15    Section 90-25. The Joliet Regional Port District Act is
16amended by changing Section 5.1 as follows:
 
17    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
18    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
19any other provision of this Act, the District may not regulate
20the operation, conduct, or navigation of any riverboat gambling
21casino licensed under the Illinois Riverboat Gambling Act, and

 

 

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1the District may not license, tax, or otherwise levy any
2assessment of any kind on any riverboat gambling casino
3licensed under the Illinois Riverboat Gambling Act. The General
4Assembly declares that the powers to regulate the operation,
5conduct, and navigation of riverboat gambling casinos and to
6license, tax, and levy assessments upon riverboat gambling
7casinos are exclusive powers of the State of Illinois and the
8Illinois Gaming Board as provided in the Illinois Riverboat
9Gambling Act.
10(Source: P.A. 87-1175.)
 
11    Section 90-30. The Consumer Installment Loan Act is amended
12by changing Section 12.5 as follows:
 
13    (205 ILCS 670/12.5)
14    Sec. 12.5. Limited purpose branch.
15    (a) Upon the written approval of the Director, a licensee
16may maintain a limited purpose branch for the sole purpose of
17making loans as permitted by this Act. A limited purpose branch
18may include an automatic loan machine. No other activity shall
19be conducted at the site, including but not limited to,
20accepting payments, servicing the accounts, or collections.
21    (b) The licensee must submit an application for a limited
22purpose branch to the Director on forms prescribed by the
23Director with an application fee of $300. The approval for the
24limited purpose branch must be renewed concurrently with the

 

 

SB0007- 190 -LRB100 06307 AMC 16345 b

1renewal of the licensee's license along with a renewal fee of
2$300 for the limited purpose branch.
3    (c) The books, accounts, records, and files of the limited
4purpose branch's transactions shall be maintained at the
5licensee's licensed location. The licensee shall notify the
6Director of the licensed location at which the books, accounts,
7records, and files shall be maintained.
8    (d) The licensee shall prominently display at the limited
9purpose branch the address and telephone number of the
10licensee's licensed location.
11    (e) No other business shall be conducted at the site of the
12limited purpose branch unless authorized by the Director.
13    (f) The Director shall make and enforce reasonable rules
14for the conduct of a limited purpose branch.
15    (g) A limited purpose branch may not be located within
161,000 feet of a facility operated by an inter-track wagering
17licensee or an organization licensee subject to the Illinois
18Horse Racing Act of 1975, on a riverboat or in a casino subject
19to the Illinois Riverboat Gambling Act, or within 1,000 feet of
20the location at which the riverboat docks or within 1,000 feet
21of a casino.
22(Source: P.A. 90-437, eff. 1-1-98.)
 
23    Section 90-35. The Illinois Horse Racing Act of 1975 is
24amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
2520, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,

 

 

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1and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
234.3, and 56 as follows:
 
3    (230 ILCS 5/1.2)
4    Sec. 1.2. Legislative intent. This Act is intended to
5benefit the people of the State of Illinois by encouraging the
6breeding and production of race horses, assisting economic
7development and promoting Illinois tourism. The General
8Assembly finds and declares it to be the public policy of the
9State of Illinois to:
10    (a) support and enhance Illinois' horse racing industry,
11which is a significant component within the agribusiness
12industry;
13    (b) ensure that Illinois' horse racing industry remains
14competitive with neighboring states;
15    (c) stimulate growth within Illinois' horse racing
16industry, thereby encouraging new investment and development
17to produce additional tax revenues and to create additional
18jobs;
19    (d) promote the further growth of tourism;
20    (e) encourage the breeding of thoroughbred and
21standardbred horses in this State; and
22    (f) ensure that public confidence and trust in the
23credibility and integrity of racing operations and the
24regulatory process is maintained.
25(Source: P.A. 91-40, eff. 6-25-99.)
 

 

 

SB0007- 192 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 193 -LRB100 06307 AMC 16345 b

1    (230 ILCS 5/3.32 new)
2    Sec. 3.32. Gross receipts. "Gross receipts" means the total
3amount of money exchanged for the purchase of chips, tokens, or
4electronic cards by riverboat or casino patrons or electronic
5gaming patrons.
 
6    (230 ILCS 5/3.33 new)
7    Sec. 3.33. Electronic gaming. "Electronic gaming" means
8slot machine gambling, video game of chance gambling, or
9gambling with electronic gambling games as defined in the
10Illinois Gambling Act or defined by the Illinois Gaming Board
11that is conducted at a race track pursuant to an electronic
12gaming license.
 
13    (230 ILCS 5/3.35 new)
14    Sec. 3.35. Electronic gaming license. "Electronic gaming
15license" means a license issued by the Illinois Gaming Board
16under Section 7.7 of the Illinois Gambling Act authorizing
17electronic gaming at an electronic gaming facility.
 
18    (230 ILCS 5/3.36 new)
19    Sec. 3.36. Electronic gaming facility. "Electronic gaming
20facility" means that portion of an organization licensee's race
21track facility at which electronic gaming is conducted.
 
22    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)

 

 

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

 

 

SB0007- 195 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 196 -LRB100 06307 AMC 16345 b

1appearance that it may influence judgment or performance of
2regulatory duties and responsibilities. This prohibition shall
3extend to any act identified by Board action that, in the
4judgment of the Board, could represent the potential for or the
5appearance of a conflict of interest.
6    (e) Board members and employees may not accept any gift,
7gratuity, service, compensation, travel, lodging, or thing of
8value, with the exception of unsolicited items of an incidental
9nature, from any person, corporation, limited liability
10company, or entity doing business with the Board.
11    (f) A Board member or employee shall not use or attempt to
12use his or her official position to secure, or attempt to
13secure, any privilege, advantage, favor, or influence for
14himself or herself or others. No Board member or employee,
15within a period of one year immediately preceding nomination by
16the Governor or employment, shall have been employed or
17received compensation or fees for services from a person or
18entity, or its parent or affiliate, that has engaged in
19business with the Board, a licensee or a licensee under the
20Illinois Gambling Act. In addition, all Board members and
21employees are subject to the restrictions set forth in Section
225-45 of the State Officials and Employees Ethics Act.
23(Source: P.A. 89-16, eff. 5-30-95.)
 
24    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
25    Sec. 9. The Board shall have all powers necessary and

 

 

SB0007- 197 -LRB100 06307 AMC 16345 b

1proper to fully and effectively execute the provisions of this
2Act, including, but not limited to, the following:
3    (a) The Board is vested with jurisdiction and supervision
4over all race meetings in this State, over all licensees doing
5business in this State, over all occupation licensees, and over
6all persons on the facilities of any licensee. Such
7jurisdiction shall include the power to issue licenses to the
8Illinois Department of Agriculture authorizing the pari-mutuel
9system of wagering on harness and Quarter Horse races held (1)
10at the Illinois State Fair in Sangamon County, and (2) at the
11DuQuoin State Fair in Perry County. The jurisdiction of the
12Board shall also include the power to issue licenses to county
13fairs which are eligible to receive funds pursuant to the
14Agricultural Fair Act, as now or hereafter amended, or their
15agents, authorizing the pari-mutuel system of wagering on horse
16races conducted at the county fairs receiving such licenses.
17Such licenses shall be governed by subsection (n) of this
18Section.
19    Upon application, the Board shall issue a license to the
20Illinois Department of Agriculture to conduct harness and
21Quarter Horse races at the Illinois State Fair and at the
22DuQuoin State Fairgrounds during the scheduled dates of each
23fair. The Board shall not require and the Department of
24Agriculture shall be exempt from the requirements of Sections
2515.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
26(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24

 

 

SB0007- 198 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

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

 

 

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1this Act.
2    (h) The Board shall name and appoint in the manner provided
3by the rules and regulations of the Board: an Executive
4Director; a State director of mutuels; State veterinarians and
5representatives to take saliva, blood, urine and other tests on
6horses; licensing personnel; revenue inspectors; and State
7seasonal employees (excluding admission ticket sellers and
8mutuel clerks). All of those named and appointed as provided in
9this subsection shall serve during the pleasure of the Board;
10their compensation shall be determined by the Board and be paid
11in the same manner as other employees of the Board under this
12Act.
13    (i) The Board shall require that there shall be 3 stewards
14at each horse race meeting, at least 2 of whom shall be named
15and appointed by the Board. Stewards appointed or approved by
16the Board, while performing duties required by this Act or by
17the Board, shall be entitled to the same rights and immunities
18as granted to Board members and Board employees in Section 10
19of this Act.
20    (j) The Board may discharge any Board employee who fails or
21refuses for any reason to comply with the rules and regulations
22of the Board, or who, in the opinion of the Board, is guilty of
23fraud, dishonesty or who is proven to be incompetent. The Board
24shall have no right or power to determine who shall be
25officers, directors or employees of any licensee, or their
26salaries except the Board may, by rule, require that all or any

 

 

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1officials or employees in charge of or whose duties relate to
2the actual running of races be approved by the Board.
3    (k) The Board is vested with the power to appoint delegates
4to execute any of the powers granted to it under this Section
5for the purpose of administering this Act and any rules or
6regulations promulgated in accordance with this Act.
7    (l) The Board is vested with the power to impose civil
8penalties of up to $5,000 against an individual and up to
9$10,000 against a licensee for each violation of any provision
10of this Act, any rules adopted by the Board, any order of the
11Board or any other action which, in the Board's discretion, is
12a detriment or impediment to horse racing or wagering.
13Beginning on the date when any organization licensee begins
14conducting electronic gaming pursuant to an electronic gaming
15license issued under the Illinois Gambling Act, the power
16granted to the Board pursuant to this subsection (l) shall
17authorize the Board to impose penalties of up to $10,000
18against an individual and up to $25,000 against a licensee. All
19such civil penalties shall be deposited into the Horse Racing
20Fund.
21    (m) The Board is vested with the power to prescribe a form
22to be used by licensees as an application for employment for
23employees of each licensee.
24    (n) The Board shall have the power to issue a license to
25any county fair, or its agent, authorizing the conduct of the
26pari-mutuel system of wagering. The Board is vested with the

 

 

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

 

 

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1purse allotments to the horsemen, the Board shall require any
2licensee to staff the pari-mutuel department with adequate
3personnel.
4(Source: P.A. 97-1060, eff. 8-24-12.)
 
5    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
6    Sec. 15. (a) The Board shall, in its discretion, issue
7occupation licenses to horse owners, trainers, harness
8drivers, jockeys, agents, apprentices, grooms, stable foremen,
9exercise persons, veterinarians, valets, blacksmiths,
10concessionaires and others designated by the Board whose work,
11in whole or in part, is conducted upon facilities within the
12State. Such occupation licenses will be obtained prior to the
13persons engaging in their vocation upon such facilities. The
14Board shall not license pari-mutuel clerks, parking
15attendants, security guards and employees of concessionaires.
16No occupation license shall be required of any person who works
17at facilities within this State as a pari-mutuel clerk, parking
18attendant, security guard or as an employee of a
19concessionaire. Concessionaires of the Illinois State Fair and
20DuQuoin State Fair and employees of the Illinois Department of
21Agriculture shall not be required to obtain an occupation
22license by the Board.
23    (b) Each application for an occupation license shall be on
24forms prescribed by the Board. Such license, when issued, shall
25be for the period ending December 31 of each year, except that

 

 

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

 

 

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

 

 

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

 

 

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1reports, statements, memoranda, or other data supplied to or
2used by the Board in the course of its review or investigation
3of an applicant for a license or renewal under this Act shall
4be privileged, strictly confidential, and shall be used only
5for the purpose of evaluating an applicant for a license or a
6renewal. Such information, records, interviews, reports,
7statements, memoranda, or other data shall not be admissible as
8evidence, nor discoverable, in any action of any kind in any
9court or before any tribunal, board, agency, or person, except
10for any action deemed necessary by the Board.
11(Source: P.A. 93-418, eff. 1-1-04.)
 
12    (230 ILCS 5/18)  (from Ch. 8, par. 37-18)
13    Sec. 18. (a) Together with its application, each applicant
14for racing dates shall deliver to the Board a certified check
15or bank draft payable to the order of the Board for $1,000. In
16the event the applicant applies for racing dates in 2 or 3
17successive calendar years as provided in subsection (b) of
18Section 21, the fee shall be $2,000. Filing fees shall not be
19refunded in the event the application is denied. Beginning on
20the date when any organization licensee begins conducting
21electronic gaming pursuant to an electronic gaming license
22issued under the Illinois Gambling Act, the application fee for
23racing dates imposed by this subsection (a) shall be $10,000
24and the application fee for racing dates in 2 or 3 successive
25calendar years as provided in subsection (b) of Section 21

 

 

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1shall be $20,000. All filing fees shall be deposited into the
2Horse Racing Fund.
3    (b) In addition to the filing fee imposed by subsection (a)
4of $1000 and the fees provided in subsection (j) of Section 20,
5each organization licensee shall pay a license fee of $100 for
6each racing program on which its daily pari-mutuel handle is
7$400,000 or more but less than $700,000, and a license fee of
8$200 for each racing program on which its daily pari-mutuel
9handle is $700,000 or more. The additional fees required to be
10paid under this Section by this amendatory Act of 1982 shall be
11remitted by the organization licensee to the Illinois Racing
12Board with each day's graduated privilege tax or pari-mutuel
13tax and breakage as provided under Section 27. Beginning on the
14date when any organization licensee begins conducting
15electronic gaming pursuant to an electronic gaming license
16issued under the Illinois Gambling Act, the license fee imposed
17by this subsection (b) shall be $200 for each racing program on
18which the organization licensee's daily pari-mutuel handle is
19$100,000 or more, but less than $400,000, and the license fee
20imposed by this subsection (b) shall be $400 for each racing
21program on which the organization licensee's daily pari-mutuel
22handle is $400,000 or more.
23    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
24Municipal Code," approved May 29, 1961, as now or hereafter
25amended, shall not apply to any license under this Act.
26(Source: P.A. 97-1060, eff. 8-24-12.)
 

 

 

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

 

 

SB0007- 211 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

SB0007- 213 -LRB100 06307 AMC 16345 b

1officer, a partner, a member, or a manager, as the case may be,
2of the entity the president and attested by the secretary or
3assistant secretary under the seal of such association, trust
4or corporation if it has a seal, and shall also be verified
5under oath by one of the signing officers.
6    (c) The application shall specify:
7        (1) the name of the persons, association, trust, or
8    corporation making such application; and
9        (2) the principal post office address of the applicant;
10        (3) if the applicant is a trustee, the names and
11    addresses of the beneficiaries; if the applicant is a
12    corporation, the names and post office addresses of all
13    officers, stockholders and directors; or if such
14    stockholders hold stock as a nominee or fiduciary, the
15    names and post office addresses of the parties these
16    persons, partnerships, corporations, or trusts who are the
17    beneficial owners thereof or who are beneficially
18    interested therein; and if the applicant is a partnership,
19    the names and post office addresses of all partners,
20    general or limited; if the applicant is a limited liability
21    company, the names and addresses of the manager and
22    members; and if the applicant is any other entity, the
23    names and addresses of all officers or other authorized
24    persons of the entity corporation, the name of the state of
25    its incorporation shall be specified.
26    (d) The applicant shall execute and file with the Board a

 

 

SB0007- 214 -LRB100 06307 AMC 16345 b

1good faith affirmative action plan to recruit, train, and
2upgrade minorities in all classifications within the
3association.
4    (e) With such application there shall be delivered to the
5Board a certified check or bank draft payable to the order of
6the Board for an amount equal to $1,000. All applications for
7the issuance of an organization license shall be filed with the
8Board before August 1 of the year prior to the year for which
9application is made and shall be acted upon by the Board at a
10meeting to be held on such date as shall be fixed by the Board
11during the last 15 days of September of such prior year. At
12such meeting, the Board shall announce the award of the racing
13meets, live racing schedule, and designation of host track to
14the applicants and its approval or disapproval of each
15application. No announcement shall be considered binding until
16a formal order is executed by the Board, which shall be
17executed no later than October 15 of that prior year. Absent
18the agreement of the affected organization licensees, the Board
19shall not grant overlapping race meetings to 2 or more tracks
20that are within 100 miles of each other to conduct the
21thoroughbred racing.
22    (e-1) In awarding standardbred racing dates for calendar
23year 2018 and thereafter, the Board shall award at least 310
24racing days, and each organization licensee shall average at
25least 12 races for each racing day awarded. The Board shall
26have the discretion to allocate those racing days among

 

 

SB0007- 215 -LRB100 06307 AMC 16345 b

1organization licensees requesting standardbred racing dates.
2Once awarded by the Board, organization licensees awarded
3standardbred racing dates shall run at least 3,500 races in
4total during that calendar year. Standardbred racing conducted
5in Sangamon County shall not be considered races under this
6subsection (e-1).
7    (e-2) In awarding racing dates for calendar year 2018 and
8thereafter, the Board shall award thoroughbred racing days to
9Cook County organization licensees commensurate with these
10organization licensees' requirement that they shall run at
11least 1,950 thoroughbred races in the aggregate, so long as 2
12organization licensees are conducting electronic gaming
13operations. Additionally, if the organization licensees that
14run thoroughbred races in Cook County are conducting electronic
15gaming operations, the Board shall increase the number of
16thoroughbred races to be run in Cook County in the aggregate to
17at least the following:
18        (i) 2,050 races in any year following the most recent
19    preceding complete calendar year when the combined
20    adjusted gross receipts of the electronic gaming licensees
21    operating at Cook County race tracks total in excess of
22    $200,000,000, but do not exceed $250,000,000;
23        (ii) 2,125 races in any year following the most recent
24    preceding complete calendar year when the combined
25    adjusted gross receipts of the electronic gaming licensees
26    operating at Cook County race tracks total in excess of

 

 

SB0007- 216 -LRB100 06307 AMC 16345 b

1    $250,000,000, but do not exceed $300,000,000;
2        (iii) 2,200 races in any year following the most recent
3    preceding complete calendar year when the combined
4    adjusted gross receipts of the electronic gaming licensees
5    operating at Cook County race tracks total in excess of
6    $300,000,000, but do not exceed $350,000,000;
7        (iv) 2,300 races in any year following the most recent
8    preceding complete calendar year when the combined
9    adjusted gross receipts of the electronic gaming licensees
10    operating at Cook County race tracks total in excess of
11    $350,000,000, but do not exceed $400,000,000;
12        (v) 2,375 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    $400,000,000, but do not exceed $450,000,000;
17        (vi) 2,450 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    $450,000,000, but do not exceed $500,000,000;
22        (vii) 2,550 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 exceeds $500,000,000.
26    In awarding racing dates under this subsection (e-2), the

 

 

SB0007- 217 -LRB100 06307 AMC 16345 b

1Board shall have the discretion to allocate those thoroughbred
2racing dates among these Cook County organization licensees.
3    (e-3) In awarding racing dates for calendar year 2018 and
4thereafter in connection with a race track in Madison County,
5the Board shall award racing dates and such organization
6licensee shall run at least 700 thoroughbred races at the race
7track in Madison County each year.
8    Notwithstanding Section 7.7 of the Illinois Gambling Act or
9any provision of this Act other than subsection (e-4.5), for
10each calendar year for which an electronic gaming licensee
11located in Madison County requests racing dates resulting in
12less than 700 live thoroughbred races at its race track
13facility, the electronic gaming licensee may not conduct
14electronic gaming for the calendar year of such requested live
15races.
16    (e-4) Notwithstanding the provisions of Section 7.7 of the
17Illinois Gambling Act or any provision of this Act other than
18subsections (e-3) and (e-4.5), for each calendar year for which
19an electronic gaming licensee requests racing dates for a
20specific horse breed which results in a number of live races
21for that specific breed under its organization license that is
22less than the total number of live races for that specific
23breed which it conducted in 2011 for standardbred racing and in
242016 for thoroughbred racing at its race track facility, the
25electronic gaming licensee may not conduct electronic gaming
26for the calendar year of such requested live races.

 

 

SB0007- 218 -LRB100 06307 AMC 16345 b

1    (e-4.5) The Board shall ensure that each organization
2licensee shall individually run a sufficient number of races
3per year to qualify for an electronic gaming license under this
4Act. The General Assembly finds that the minimum live racing
5guarantees contained in subsections (e-1), (e-2), and (e-3) are
6in the best interest of the sport of horse racing, and that
7such guarantees may only be reduced in the limited
8circumstances described in this subsection. The Board may
9decrease the number of racing days without affecting an
10organization licensee's ability to conduct electronic gaming
11only if the Board determines, after notice and hearing, that:
12        (i) a decrease is necessary to maintain a sufficient
13    number of betting interests per race to ensure the
14    integrity of racing;
15        (ii) there are unsafe track conditions due to weather
16    or acts of God;
17        (iii) there is an agreement between an organization
18    licensee and the breed association that is applicable to
19    the involved live racing guarantee, such association
20    representing either the largest number of thoroughbred
21    owners and trainers or the largest number of standardbred
22    owners, trainers and drivers who race horses at the
23    involved organization licensee's racing meeting, so long
24    as the agreement does not compromise the integrity of the
25    sport of horse racing; or
26        (iv) the horse population or purse levels are

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1Board, and require the submittal of an amended application
2within a reasonable time determined by the Board; and upon
3submittal of the amended application by the applicant, the
4Board may consider the application consistent with the process
5described in subsection (e-5) of Section 20 of this Act. If it
6is found to be in compliance with this Act and the rules and
7regulations of the Board, the Board may then issue an
8organization license to such applicant.
9    (b) The Board may exercise discretion in granting racing
10dates to qualified applicants different from those requested by
11the applicants in their applications. However, if all eligible
12applicants for organization licenses whose tracks are located
13within 100 miles of each other execute and submit to the Board
14a written agreement among such applicants as to the award of
15racing dates, including where applicable racing programs, for
16up to 3 consecutive years, then subject to annual review of
17each applicant's compliance with Board rules and regulations,
18provisions of this Act and conditions contained in annual dates
19orders issued by the Board, the Board may grant such dates and
20programs to such applicants as so agreed by them if the Board
21determines that the grant of these racing dates is in the best
22interests of racing. The Board shall treat any such agreement
23as the agreement signatories' joint and several application for
24racing dates during the term of the agreement.
25    (c) Where 2 or more applicants propose to conduct horse
26race meetings within 35 miles of each other, as certified to

 

 

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

 

 

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1    (h) All racing conducted under such organization license is
2subject to this Act and to the rules and regulations from time
3to time prescribed by the Board, and every such organization
4license issued by the Board shall contain a recital to that
5effect.
6    (i) Each such organization licensee may provide that at
7least one race per day may be devoted to the racing of quarter
8horses, appaloosas, arabians, or paints.
9    (j) In acting on applications for organization licenses,
10the Board shall give weight to an organization license which
11has implemented a good faith affirmative action effort to
12recruit, train and upgrade minorities in all classifications
13within the organization license.
14(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
 
15    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
16    Sec. 24. (a) No license shall be issued to or held by an
17organization licensee unless all of its officers, directors,
18and holders of ownership interests of at least 5% are first
19approved by the Board. The Board shall not give approval of an
20organization license application to any person who has been
21convicted of or is under an indictment for a crime of moral
22turpitude or has violated any provision of the racing law of
23this State or any rules of the Board.
24    (b) An organization licensee must notify the Board within
2510 days of any change in the holders of a direct or indirect

 

 

SB0007- 228 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 229 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

SB0007- 231 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 232 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 233 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 234 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 235 -LRB100 06307 AMC 16345 b

1races to be utilized for pari-mutuel wagering at one or more
2locations in other states and may transmit audio and visual
3signals of races the organization licensee conducts to one or
4more locations outside the State or country and may also permit
5pari-mutuel pools in other states or countries to be combined
6with its gross or net wagering pools or with wagering pools
7established by other states.
8    (g) A host track may accept interstate simulcast wagers on
9horse races conducted in other states or countries and shall
10control the number of signals and types of breeds of racing in
11its simulcast program, subject to the disapproval of the Board.
12The Board may prohibit a simulcast program only if it finds
13that the simulcast program is clearly adverse to the integrity
14of racing. The host track simulcast program shall include the
15signal of live racing of all organization licensees. All
16non-host licensees and advance deposit wagering licensees
17shall carry the signal of and accept wagers on live racing of
18all organization licensees. Advance deposit wagering licensees
19shall not be permitted to accept out-of-state wagers on any
20Illinois signal provided pursuant to this Section without the
21approval and consent of the organization licensee providing the
22signal. For one year after August 15, 2014 (the effective date
23of Public Act 98-968) this amendatory Act of the 98th General
24Assembly, non-host licensees may carry the host track simulcast
25program and shall accept wagers on all races included as part
26of the simulcast program of horse races conducted at race

 

 

SB0007- 236 -LRB100 06307 AMC 16345 b

1tracks located within North America upon which wagering is
2permitted. For a period of one year after August 15, 2014 (the
3effective date of Public Act 98-968) this amendatory Act of the
498th General Assembly, on horse races conducted at race tracks
5located outside of North America, non-host licensees may accept
6wagers on all races included as part of the simulcast program
7upon which wagering is permitted. Beginning August 15, 2015
8(one year after the effective date of Public Act 98-968) this
9amendatory Act of the 98th General Assembly, non-host licensees
10may carry the host track simulcast program and shall accept
11wagers on all races included as part of the simulcast program
12upon which wagering is permitted. All organization licensees
13shall provide their live signal to all advance deposit wagering
14licensees for a simulcast commission fee not to exceed 6% of
15the advance deposit wagering licensee's Illinois handle on the
16organization licensee's signal without prior approval by the
17Board. The Board may adopt rules under which it may permit
18simulcast commission fees in excess of 6%. The Board shall
19adopt rules limiting the interstate commission fees charged to
20an advance deposit wagering licensee. The Board shall adopt
21rules regarding advance deposit wagering on interstate
22simulcast races that shall reflect, among other things, the
23General Assembly's desire to maximize revenues to the State,
24horsemen purses, and organizational licensees. However,
25organization licensees providing live signals pursuant to the
26requirements of this subsection (g) may petition the Board to

 

 

SB0007- 237 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 238 -LRB100 06307 AMC 16345 b

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

 

 

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1subsection (g) by Public Act 98-18 this amendatory Act of the
298th General Assembly are hereby validated, provided payment of
3all applicable pari-mutuel taxes are remitted to the Board. All
4advance deposit wagers placed from within Illinois must be
5placed through a Board-approved advance deposit wagering
6licensee; no other entity may accept an advance deposit wager
7from a person within Illinois. All advance deposit wagering is
8subject to any rules adopted by the Board. The Board may adopt
9rules necessary to regulate advance deposit wagering through
10the use of emergency rulemaking in accordance with Section 5-45
11of the Illinois Administrative Procedure Act. The General
12Assembly finds that the adoption of rules to regulate advance
13deposit wagering is deemed an emergency and necessary for the
14public interest, safety, and welfare. An advance deposit
15wagering licensee may retain all moneys as agreed to by
16contract with an organization licensee. Any moneys retained by
17the organization licensee from advance deposit wagering, not
18including moneys retained by the advance deposit wagering
19licensee, shall be paid 50% to the organization licensee's
20purse account and 50% to the organization licensee. With the
21exception of any organization licensee that is owned by a
22publicly traded company that is incorporated in a state other
23than Illinois and advance deposit wagering licensees under
24contract with such organization licensees, organization
25licensees that maintain advance deposit wagering systems and
26advance deposit wagering licensees that contract with

 

 

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

 

 

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1    any year, inclusive, if no live thoroughbred racing is
2    occurring in Illinois during this period, only
3    thoroughbred races may be used for supplemental interstate
4    simulcast purposes. The Board shall withhold approval for a
5    supplemental interstate simulcast only if it finds that the
6    simulcast is clearly adverse to the integrity of racing. A
7    supplemental interstate simulcast may be transmitted from
8    an inter-track intertrack wagering licensee to its
9    affiliated non-host licensees. The interstate commission
10    fee for a supplemental interstate simulcast shall be paid
11    by the non-host licensee and its affiliated non-host
12    licensees receiving the simulcast.
13        (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
14    inter-track intertrack wagering licensee other than the
15    host track may receive supplemental interstate simulcasts
16    only with the consent of the host track, except when the
17    Board finds that the simulcast is clearly adverse to the
18    integrity of racing. Consent granted under this paragraph
19    (2) to any inter-track intertrack wagering licensee shall
20    be deemed consent to all non-host licensees. The interstate
21    commission fee for the supplemental interstate simulcast
22    shall be paid by all participating non-host licensees.
23        (3) Each licensee conducting interstate simulcast
24    wagering may retain, subject to the payment of all
25    applicable taxes and the purses, an amount not to exceed
26    17% of all money wagered. If any licensee conducts the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0007- 248 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 249 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 250 -LRB100 06307 AMC 16345 b

1    and that borders the Mississippi River.
2        (9) (Blank).
3        (10) (Blank).
4        (11) (Blank).
5        (12) The Board shall have authority to compel all host
6    tracks to receive the simulcast of any or all races
7    conducted at the Springfield or DuQuoin State fairgrounds
8    and include all such races as part of their simulcast
9    programs.
10        (13) Notwithstanding any other provision of this Act,
11    in the event that the total Illinois pari-mutuel handle on
12    Illinois horse races at all wagering facilities in any
13    calendar year is less than 75% of the total Illinois
14    pari-mutuel handle on Illinois horse races at all such
15    wagering facilities for calendar year 1994, then each
16    wagering facility that has an annual total Illinois
17    pari-mutuel handle on Illinois horse races that is less
18    than 75% of the total Illinois pari-mutuel handle on
19    Illinois horse races at such wagering facility for calendar
20    year 1994, shall be permitted to receive, from any amount
21    otherwise payable to the purse account at the race track
22    with which the wagering facility is affiliated in the
23    succeeding calendar year, an amount equal to 2% of the
24    differential in total Illinois pari-mutuel handle on
25    Illinois horse races at the wagering facility between that
26    calendar year in question and 1994 provided, however, that

 

 

SB0007- 251 -LRB100 06307 AMC 16345 b

1    a wagering facility shall not be entitled to any such
2    payment until the Board certifies in writing to the
3    wagering facility the amount to which the wagering facility
4    is entitled and a schedule for payment of the amount to the
5    wagering facility, based on: (i) the racing dates awarded
6    to the race track affiliated with the wagering facility
7    during the succeeding year; (ii) the sums available or
8    anticipated to be available in the purse account of the
9    race track affiliated with the wagering facility for purses
10    during the succeeding year; and (iii) the need to ensure
11    reasonable purse levels during the payment period. The
12    Board's certification shall be provided no later than
13    January 31 of the succeeding year. In the event a wagering
14    facility entitled to a payment under this paragraph (13) is
15    affiliated with a race track that maintains purse accounts
16    for both standardbred and thoroughbred racing, the amount
17    to be paid to the wagering facility shall be divided
18    between each purse account pro rata, based on the amount of
19    Illinois handle on Illinois standardbred and thoroughbred
20    racing respectively at the wagering facility during the
21    previous calendar year. Annually, the General Assembly
22    shall appropriate sufficient funds from the General
23    Revenue Fund to the Department of Agriculture for payment
24    into the thoroughbred and standardbred horse racing purse
25    accounts at Illinois pari-mutuel tracks. The amount paid to
26    each purse account shall be the amount certified by the

 

 

SB0007- 252 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 253 -LRB100 06307 AMC 16345 b

1    according to the 1990 decennial census, and an average of
2    at least 60 days of racing per year between 1985 and 1993
3    may be issued an inter-track wagering license; or (iii) at
4    a track located in Madison County that conducted at least
5    100 days of live racing during the immediately preceding
6    calendar year may be issued an inter-track wagering
7    license, unless a lesser schedule of live racing is the
8    result of (A) weather, unsafe track conditions, or other
9    acts of God; (B) an agreement between the organization
10    licensee and the associations representing the largest
11    number of owners, trainers, jockeys, or standardbred
12    drivers who race horses at that organization licensee's
13    racing meeting; or (C) a finding by the Board of
14    extraordinary circumstances and that it was in the best
15    interest of the public and the sport to conduct fewer than
16    100 days of live racing. Any such person having operating
17    control of the racing facility may receive inter-track
18    wagering location licenses. An eligible race track located
19    in a county that has a population of more than 230,000 and
20    that is bounded by the Mississippi River may establish up
21    to 9 inter-track wagering locations, and an eligible race
22    track located in Stickney Township in Cook County may
23    establish up to 16 inter-track wagering locations, and an
24    eligible race track located in Palatine Township in Cook
25    County may establish up to 18 inter-track wagering
26    locations. An application for said license shall be filed

 

 

SB0007- 254 -LRB100 06307 AMC 16345 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

 

 

SB0007- 255 -LRB100 06307 AMC 16345 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

 

 

SB0007- 256 -LRB100 06307 AMC 16345 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

 

 

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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

 

 

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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%

 

 

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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 intertrack wagering at a
5    race track located in a county that has a population of
6    more than 230,000 and that is bounded by the Mississippi
7    River ("the first race track"), or at a facility operated
8    by an inter-track wagering licensee or inter-track
9    wagering location licensee that derives its license from
10    the organization licensee that operates the first race
11    track, on races conducted at the first race track or on
12    races 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.

 

 

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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 intertrack wagering licensee that derives its
11    license from a track located in a county with a population
12    in 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 intertrack wagering licensee that accepts
16    wagers on races conducted by an organization licensee that
17    conducts a race meet in a county with a population in
18    excess of 230,000 and that borders the Mississippi River
19    shall not divide any remaining retention with that
20    organization 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 intertrack
25    wagering at such location on races as purses, except that
26    an inter-track intertrack wagering location licensee that

 

 

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

 

 

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

 

 

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1    retained by the inter-track wagering location licensee
2    shall be allocated 40% to the location licensee and 60% to
3    the organization licensee which provides the Illinois
4    races to the location, except that an inter-track
5    intertrack wagering location licensee that derives its
6    license from a track located in a county with a population
7    in excess of 230,000 and that borders the Mississippi River
8    shall not divide any remaining retention with the
9    organization licensee that provides the race or races and
10    an inter-track intertrack wagering location licensee that
11    accepts wagers on races conducted by an organization
12    licensee that conducts a race meet in a county with a
13    population in excess of 230,000 and that borders the
14    Mississippi River shall not divide any remaining retention
15    with the organization licensee. Notwithstanding the
16    provisions of clauses (ii) and (iv) of this paragraph, in
17    the case of the additional inter-track wagering location
18    licenses authorized under paragraph (1) of this subsection
19    (h) by Public Act 87-110 this amendatory Act of 1991, those
20    licensees shall pay the following amounts as purses: during
21    the first 12 months the licensee is in operation, 5.25% of
22    the pari-mutuel handle wagered at the location on races;
23    during the second 12 months, 5.25%; during the third 12
24    months, 5.75%; during the fourth 12 months, 6.25%; and
25    during the fifth 12 months and thereafter, 6.75%. The
26    following amounts shall be retained by the licensee to

 

 

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1    satisfy all costs and expenses of conducting its wagering:
2    during the first 12 months the licensee is in operation,
3    8.25% of the pari-mutuel handle wagered at the location;
4    during the second 12 months, 8.25%; during the third 12
5    months, 7.75%; during the fourth 12 months, 7.25%; and
6    during the fifth 12 months and thereafter, 6.75%. For
7    additional inter-track intertrack wagering location
8    licensees authorized under Public Act 89-16 this
9    amendatory Act of 1995, purses for the first 12 months the
10    licensee is in operation shall be 5.75% of the pari-mutuel
11    wagered at the location, purses for the second 12 months
12    the licensee is in operation shall be 6.25%, and purses
13    thereafter shall be 6.75%. For additional inter-track
14    intertrack location licensees authorized under Public Act
15    89-16 this amendatory Act of 1995, the licensee shall be
16    allowed to retain to satisfy all costs and expenses: 7.75%
17    of the pari-mutuel handle wagered at the location during
18    its first 12 months of operation, 7.25% during its second
19    12 months of operation, and 6.75% thereafter.
20        (C) There is hereby created the Horse Racing Tax
21    Allocation Fund which shall remain in existence until
22    December 31, 1999. Moneys remaining in the Fund after
23    December 31, 1999 shall be paid into the General Revenue
24    Fund. Until January 1, 2000, all monies paid into the Horse
25    Racing Tax Allocation Fund pursuant to this paragraph (11)
26    by inter-track wagering location licensees located in park

 

 

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

 

 

SB0007- 266 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 267 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 268 -LRB100 06307 AMC 16345 b

1        that is not included within any park district but is
2        included within a conservation district as provided in
3        this paragraph shall, as soon as practicable after
4        August 9, 1991 (the effective date of Public Act
5        87-110) this amendatory Act of 1991, be allocated and
6        paid to that conservation district as provided in this
7        paragraph. Any park district or municipality not
8        maintaining a museum may deposit the monies in the
9        corporate fund of the park district or municipality
10        where the inter-track wagering location is located, to
11        be used for general purposes; and
12            One-seventh to the Agricultural Premium Fund to be
13        used for distribution to agricultural home economics
14        extension councils in accordance with "An Act in
15        relation to additional support and finances for the
16        Agricultural and Home Economic Extension Councils in
17        the several counties of this State and making an
18        appropriation therefor", approved July 24, 1967.
19        Until January 1, 2000, all other monies paid into the
20    Horse Racing Tax Allocation Fund pursuant to this paragraph
21    (11) shall be allocated by appropriation as follows:
22            Two-sevenths to the Department of Agriculture.
23        Fifty percent of this two-sevenths shall be used to
24        promote the Illinois horse racing and breeding
25        industry, and shall be distributed by the Department of
26        Agriculture upon the advice of a 9-member committee

 

 

SB0007- 269 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 270 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 271 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 272 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 273 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 274 -LRB100 06307 AMC 16345 b

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

 

 

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1    Fair in Perry County, or to any wagering conducted on those
2    race meetings.
3        (14) An inter-track wagering location license
4    authorized by the Board in 2016 that is owned and operated
5    by a race track in Rock Island County shall be transferred
6    to a commonly owned race track in Cook County on August 12,
7    2016 (the effective date of Public Act 99-757) this
8    amendatory Act of the 99th General Assembly. The licensee
9    shall retain its status in relation to purse distribution
10    under paragraph (11) of this subsection (h) following the
11    transfer to the new entity. The pari-mutuel tax credit
12    under Section 32.1 shall not be applied toward any
13    pari-mutuel tax obligation of the inter-track wagering
14    location licensee of the license that is transferred under
15    this paragraph (14).
16    (i) Notwithstanding the other provisions of this Act, the
17conduct of wagering at wagering facilities is authorized on all
18days, except as limited by subsection (b) of Section 19 of this
19Act.
20(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968,
21eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
22revised 9-14-16.)
 
23    (230 ILCS 5/26.8)
24    Sec. 26.8. Beginning on February 1, 2014 and through
25December 31, 2018, each wagering licensee may impose a

 

 

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1surcharge of up to 0.5% on winning wagers and winnings from
2wagers. The surcharge shall be deducted from winnings prior to
3payout. All amounts collected from the imposition of this
4surcharge shall be evenly distributed to the organization
5licensee and the purse account of the organization licensee
6with which the licensee is affiliated. The amounts distributed
7under this Section shall be in addition to the amounts paid
8pursuant to paragraph (10) of subsection (h) of Section 26,
9Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
10(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
11    (230 ILCS 5/26.9)
12    Sec. 26.9. Beginning on February 1, 2014 and through
13December 31, 2018, in addition to the surcharge imposed in
14Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
15licensee shall impose a surcharge of 0.2% on winning wagers and
16winnings from wagers. The surcharge shall be deducted from
17winnings prior to payout. All amounts collected from the
18surcharges imposed under this Section shall be remitted to the
19Board. From amounts collected under this Section, the Board
20shall deposit an amount not to exceed $100,000 annually into
21the Quarter Horse Purse Fund and all remaining amounts into the
22Horse Racing Fund.
23(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
24    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)

 

 

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1    Sec. 27. (a) In addition to the organization license fee
2provided by this Act, until January 1, 2000, a graduated
3privilege tax is hereby imposed for conducting the pari-mutuel
4system of wagering permitted under this Act. Until January 1,
52000, except as provided in subsection (g) of Section 27 of
6this Act, all of the breakage of each racing day held by any
7licensee in the State shall be paid to the State. Until January
81, 2000, such daily graduated privilege tax shall be paid by
9the licensee from the amount permitted to be retained under
10this Act. Until January 1, 2000, each day's graduated privilege
11tax, breakage, and Horse Racing Tax Allocation funds shall be
12remitted to the Department of Revenue within 48 hours after the
13close of the racing day upon which it is assessed or within
14such other time as the Board prescribes. The privilege tax
15hereby imposed, until January 1, 2000, shall be a flat tax at
16the rate of 2% of the daily pari-mutuel handle except as
17provided in Section 27.1.
18    In addition, every organization licensee, except as
19provided in Section 27.1 of this Act, which conducts multiple
20wagering shall pay, until January 1, 2000, as a privilege tax
21on multiple wagers an amount equal to 1.25% of all moneys
22wagered each day on such multiple wagers, plus an additional
23amount equal to 3.5% of the amount wagered each day on any
24other multiple wager which involves a single betting interest
25on 3 or more horses. The licensee shall remit the amount of
26such taxes to the Department of Revenue within 48 hours after

 

 

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1the close of the racing day on which it is assessed or within
2such other time as the Board prescribes.
3    This subsection (a) shall be inoperative and of no force
4and effect on and after January 1, 2000.
5    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
6at the rate of 1.5% of the daily pari-mutuel handle is imposed
7at all pari-mutuel wagering facilities and on advance deposit
8wagering from a location other than a wagering facility, except
9as otherwise provided for in this subsection (a-5). In addition
10to the pari-mutuel tax imposed on advance deposit wagering
11pursuant to this subsection (a-5), beginning on August 24, 2012
12(the effective date of Public Act 97-1060) and through December
1331, 2018, an additional pari-mutuel tax at the rate of 0.25%
14shall be imposed on advance deposit wagering. Until August 25,
152012, the additional 0.25% pari-mutuel tax imposed on advance
16deposit wagering by Public Act 96-972 shall be deposited into
17the Quarter Horse Purse Fund, which shall be created as a
18non-appropriated trust fund administered by the Board for
19grants to thoroughbred organization licensees for payment of
20purses for quarter horse races conducted by the organization
21licensee. Beginning on August 26, 2012, the additional 0.25%
22pari-mutuel tax imposed on advance deposit wagering shall be
23deposited into the Standardbred Purse Fund, which shall be
24created as a non-appropriated trust fund administered by the
25Board, for grants to the standardbred organization licensees
26for payment of purses for standardbred horse races conducted by

 

 

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

 

 

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

 

 

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

 

 

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1    (f) No other license fee, privilege tax, excise tax or
2racing fee shall be assessed or collected from any such
3licensee by units of local government except as provided in
4paragraph 10.1 of subsection (h) and subsection (f) of Section
526 of this Act. However, any municipality that has a Board
6licensed horse race meeting at a race track wholly within its
7corporate boundaries or a township that has a Board licensed
8horse race meeting at a race track wholly within the
9unincorporated area of the township may charge a local
10amusement tax not to exceed 10¢ per admission to such horse
11race meeting by the enactment of an ordinance. However, any
12municipality or county that has a Board licensed inter-track
13wagering location facility wholly within its corporate
14boundaries may each impose an admission fee not to exceed $1.00
15per admission to such inter-track wagering location facility,
16so that a total of not more than $2.00 per admission may be
17imposed. Except as provided in subparagraph (g) of Section 27
18of this Act, the inter-track wagering location licensee shall
19collect any and all such fees and within 48 hours remit the
20fees to the Board as the Board prescribes, which shall,
21pursuant to rule, cause the fees to be distributed to the
22county or municipality.
23    (g) Notwithstanding any provision in this Act to the
24contrary, if in any calendar year the total taxes and fees from
25wagering on live racing and from inter-track wagering required
26to be collected from licensees and distributed under this Act

 

 

SB0007- 283 -LRB100 06307 AMC 16345 b

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

 

 

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1    provided that the first $1,500,000 of the amount allocated
2    to standardbred purses under item (i) shall be allocated to
3    the Department of Agriculture to be expended with the
4    assistance and advice of the Illinois Standardbred
5    Breeders Funds Advisory Board for the purposes listed in
6    subsection (g) of Section 31 of this Act, before the amount
7    allocated to standardbred purses under item (i) is
8    allocated to standardbred organization licensees in the
9    succeeding allocation year.
10    To the extent the excess amount of taxes and fees to be
11collected and distributed to State and local governmental
12authorities exceeds $11 million, that excess amount shall be
13collected and distributed to State and local authorities as
14provided for under this Act.
15(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
16eff. 8-12-16.)
 
17    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
18    Sec. 30. (a) The General Assembly declares that it is the
19policy of this State to encourage the breeding of thoroughbred
20horses in this State and the ownership of such horses by
21residents of this State in order to provide for: sufficient
22numbers of high quality thoroughbred horses to participate in
23thoroughbred racing meetings in this State, and to establish
24and preserve the agricultural and commercial benefits of such
25breeding and racing industries to the State of Illinois. It is

 

 

SB0007- 285 -LRB100 06307 AMC 16345 b

1the intent of the General Assembly to further this policy by
2the provisions of this Act.
3    (b) Each organization licensee conducting a thoroughbred
4racing meeting pursuant to this Act shall provide at least two
5races each day limited to Illinois conceived and foaled horses
6or Illinois foaled horses or both. A minimum of 6 races shall
7be conducted each week limited to Illinois conceived and foaled
8or Illinois foaled horses or both. No horses shall be permitted
9to start in such races unless duly registered under the rules
10of the Department of Agriculture.
11    (c) Conditions of races under subsection (b) shall be
12commensurate with past performance, quality, and class of
13Illinois conceived and foaled and Illinois foaled horses
14available. If, however, sufficient competition cannot be had
15among horses of that class on any day, the races may, with
16consent of the Board, be eliminated for that day and substitute
17races provided.
18    (d) There is hereby created a special fund of the State
19Treasury to be known as the Illinois Thoroughbred Breeders
20Fund.
21    Beginning on the effective date of this amendatory Act of
22the 100th General Assembly, the Illinois Thoroughbred Breeders
23Fund shall become a non-appropriated trust fund held separately
24from State moneys. Expenditures from this Fund shall no longer
25be subject to appropriation.
26    Except as provided in subsection (g) of Section 27 of this

 

 

SB0007- 286 -LRB100 06307 AMC 16345 b

1Act, 8.5% of all the monies received by the State as privilege
2taxes on Thoroughbred racing meetings shall be paid into the
3Illinois Thoroughbred Breeders Fund.
4    Notwithstanding any provision of law to the contrary,
5amounts deposited into the Illinois Thoroughbred Breeders Fund
6from revenues generated by electronic gaming after the
7effective date of this amendatory Act of the 100th General
8Assembly shall be in addition to tax and fee amounts paid under
9this Section for calendar year 2017 and thereafter.
10    (e) The Illinois Thoroughbred Breeders Fund shall be
11administered by the Department of Agriculture with the advice
12and assistance of the Advisory Board created in subsection (f)
13of this Section.
14    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
15shall consist of the Director of the Department of Agriculture,
16who shall serve as Chairman; a member of the Illinois Racing
17Board, designated by it; 2 representatives of the organization
18licensees conducting thoroughbred racing meetings, recommended
19by them; 2 representatives of the Illinois Thoroughbred
20Breeders and Owners Foundation, recommended by it; one
21representative and 2 representatives of the Horsemen's
22Benevolent Protective Association; and one representative from
23the Illinois Thoroughbred Horsemen's Association or any
24successor organization established in Illinois comprised of
25the largest number of owners and trainers, recommended by it,
26with one representative of the Horsemen's Benevolent and

 

 

SB0007- 287 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 288 -LRB100 06307 AMC 16345 b

1    addition to any purses, stakes, or breeders' awards offered
2    by each organization licensee as determined by agreement
3    between such organization licensee and an organization
4    representing the horsemen. No monies from the Illinois
5    Thoroughbred Breeders Fund shall be used to provide purse
6    supplements for claiming races in which the minimum
7    claiming price is less than $7,500.
8        (2) To provide stakes and awards to be paid to the
9    owners of the winning horses in certain races limited to
10    Illinois conceived and foaled and Illinois foaled horses
11    designated as stakes races.
12        (2.5) To provide an award to the owner or owners of an
13    Illinois conceived and foaled or Illinois foaled horse that
14    wins a maiden special weight, an allowance, overnight
15    handicap race, or claiming race with claiming price of
16    $10,000 or more providing the race is not restricted to
17    Illinois conceived and foaled or Illinois foaled horses.
18    Awards shall also be provided to the owner or owners of
19    Illinois conceived and foaled and Illinois foaled horses
20    that place second or third in those races. To the extent
21    that additional moneys are required to pay the minimum
22    additional awards of 40% of the purse the horse earns for
23    placing first, second or third in those races for Illinois
24    foaled horses and of 60% of the purse the horse earns for
25    placing first, second or third in those races for Illinois
26    conceived and foaled horses, those moneys shall be provided

 

 

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1    from the purse account at the track where earned.
2        (3) To provide stallion awards to the owner or owners
3    of any stallion that is duly registered with the Illinois
4    Thoroughbred Breeders Fund Program prior to the effective
5    date of this amendatory Act of 1995 whose duly registered
6    Illinois conceived and foaled offspring wins a race
7    conducted at an Illinois thoroughbred racing meeting other
8    than a claiming race, provided that the stallion stood
9    service within Illinois at the time the offspring was
10    conceived and that the stallion did not stand for service
11    outside of Illinois at any time during the year in which
12    the offspring was conceived. Such award shall not be paid
13    to the owner or owners of an Illinois stallion that served
14    outside this State at any time during the calendar year in
15    which such race was conducted.
16        (4) To provide $75,000 annually for purses to be
17    distributed to county fairs that provide for the running of
18    races during each county fair exclusively for the
19    thoroughbreds conceived and foaled in Illinois. The
20    conditions of the races shall be developed by the county
21    fair association and reviewed by the Department with the
22    advice and assistance of the Illinois Thoroughbred
23    Breeders Fund Advisory Board. There shall be no wagering of
24    any kind on the running of Illinois conceived and foaled
25    races at county fairs.
26        (4.1) To provide purse money for an Illinois stallion

 

 

SB0007- 290 -LRB100 06307 AMC 16345 b

1    stakes program.
2        (5) No less than 90% 80% of all monies appropriated
3    from the Illinois Thoroughbred Breeders Fund shall be
4    expended for the purposes in (1), (2), (2.5), (3), (4),
5    (4.1), and (5) as shown above.
6        (6) To provide for educational programs regarding the
7    thoroughbred breeding industry.
8        (7) To provide for research programs concerning the
9    health, development and care of the thoroughbred horse.
10        (8) To provide for a scholarship and training program
11    for students of equine veterinary medicine.
12        (9) To provide for dissemination of public information
13    designed to promote the breeding of thoroughbred horses in
14    Illinois.
15        (10) To provide for all expenses incurred in the
16    administration of the Illinois Thoroughbred Breeders Fund.
17    (h) The Illinois Thoroughbred Breeders Fund is not subject
18to administrative charges or chargebacks, including, but not
19limited to, those authorized under Section 8h of the State
20Finance Act. Whenever the Governor finds that the amount in the
21Illinois Thoroughbred Breeders Fund is more than the total of
22the outstanding appropriations from such fund, the Governor
23shall notify the State Comptroller and the State Treasurer of
24such fact. The Comptroller and the State Treasurer, upon
25receipt of such notification, shall transfer such excess amount
26from the Illinois Thoroughbred Breeders Fund to the General

 

 

SB0007- 291 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 292 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 293 -LRB100 06307 AMC 16345 b

1any award to the owner of the horse or reduce the taxes payable
2under this Act. Upon completion of its racing meet, each
3organization licensee shall deliver to the organization
4representing thoroughbred breeders and owners whose
5representative serves on the Illinois Thoroughbred Breeders
6Fund Advisory Board a listing of all the Illinois foaled and
7the Illinois conceived and foaled horses which won breeders'
8awards and the amount of such breeders' awards under this
9subsection to verify accuracy of payments and assure proper
10distribution of breeders' awards in accordance with the
11provisions of this Act. Such payments shall be delivered by the
12organization licensee within 30 days of the end of each race
13meeting.
14    (j) A sum equal to 13% of the first prize money won in
15every race limited to Illinois foaled horses or Illinois
16conceived and foaled horses, or both, shall be paid in the
17following manner by the organization licensee conducting the
18horse race meeting, 50% from the organization licensee's share
19of the money wagered and 50% from the purse account as follows:
2011 1/2% to the breeders of the horses in each such race which
21are the official first, second, third, and fourth finishers and
221 1/2% to the organization representing thoroughbred breeders
23and owners whose representatives serves on the Illinois
24Thoroughbred Breeders Fund Advisory Board for verifying the
25amounts of breeders' awards earned, ensuring their proper
26distribution in accordance with this Act, and servicing and

 

 

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1promoting the Illinois horse racing industry. Beginning in the
2calendar year in which an organization licensee that is
3eligible to receive payments under paragraph (13) of subsection
4(g) of Section 26 of this Act begins to receive funds from
5electronic gaming, a sum of 21 1/2% of every purse in a race
6limited to Illinois foaled horses or Illinois conceived and
7foaled horses, or both, shall be paid by the organization
8licensee conducting the horse race meeting. Such sum shall be
9paid 30% from the organization licensee's account and 70% from
10the purse account as follows: 20% to the breeders of the horses
11in each such race who are official first, second, third and
12fourth finishers and 1 1/2% to the organization representing
13thoroughbred breeders and owners whose representatives serve
14on the Illinois Thoroughbred Breeders Fund Advisory Board for
15verifying the amounts of breeders' awards earned, ensuring
16their proper distribution in accordance with this Act, and
17servicing and promoting the Illinois thoroughbred horse racing
18industry. The organization representing thoroughbred breeders
19and owners shall cause all expenditures of moneys received
20under this subsection (j) to be audited at least annually by a
21registered public accountant. The organization shall file
22copies of each annual audit with the Racing Board, the Clerk of
23the House of Representatives and the Secretary of the Senate,
24and shall make copies of each annual audit available to the
25public upon request and upon payment of the reasonable cost of
26photocopying the requested number of copies. A sum equal to 12

 

 

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

 

 

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1        (2) 20% of such sum shall be paid to the breeder of the
2    horse which finishes in the official second position;
3        (3) 15% of such sum shall be paid to the breeder of the
4    horse which finishes in the official third position; and
5        (4) 5% of such sum shall be paid to the breeder of the
6    horse which finishes in the official fourth position.
7    Such payments shall not reduce any award to the owners of a
8horse or reduce the taxes payable under this Act. Upon
9completion of its racing meet, each organization licensee shall
10deliver to the organization representing thoroughbred breeders
11and owners whose representative serves on the Illinois
12Thoroughbred Breeders Fund Advisory Board a listing of all the
13Illinois foaled and the Illinois conceived and foaled horses
14which won breeders' awards and the amount of such breeders'
15awards in accordance with the provisions of this Act. Such
16payments shall be delivered by the organization licensee within
1730 days of the end of each race meeting.
18    (k) The term "breeder", as used herein, means the owner of
19the mare at the time the foal is dropped. An "Illinois foaled
20horse" is a foal dropped by a mare which enters this State on
21or before December 1, in the year in which the horse is bred,
22provided the mare remains continuously in this State until its
23foal is born. An "Illinois foaled horse" also means a foal born
24of a mare in the same year as the mare enters this State on or
25before March 1, and remains in this State at least 30 days
26after foaling, is bred back during the season of the foaling to

 

 

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1an Illinois Registered Stallion (unless a veterinarian
2certifies that the mare should not be bred for health reasons),
3and is not bred to a stallion standing in any other state
4during the season of foaling. An "Illinois foaled horse" also
5means a foal born in Illinois of a mare purchased at public
6auction subsequent to the mare entering this State on or before
7March 1 prior to February 1 of the foaling year providing the
8mare is owned solely by one or more Illinois residents or an
9Illinois entity that is entirely owned by one or more Illinois
10residents.
11    (l) The Department of Agriculture shall, by rule, with the
12advice and assistance of the Illinois Thoroughbred Breeders
13Fund Advisory Board:
14        (1) Qualify stallions for Illinois breeding; such
15    stallions to stand for service within the State of Illinois
16    at the time of a foal's conception. Such stallion must not
17    stand for service at any place outside the State of
18    Illinois during the calendar year in which the foal is
19    conceived. The Department of Agriculture may assess and
20    collect an application fee of up to $500 fees for the
21    registration of Illinois-eligible stallions. All fees
22    collected are to be held in trust accounts for the purposes
23    set forth in this Act and in accordance with Section 205-15
24    of the Department of Agriculture Law paid into the Illinois
25    Thoroughbred Breeders Fund.
26        (2) Provide for the registration of Illinois conceived

 

 

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

 

 

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1of stakes caliber horses as demonstrated by past performances,
2whether the race can be coordinated into the proposed racing
3dates within organization licensees' racing dates, opportunity
4for colts and fillies and various age groups to race, public
5wagering on such races, and the previous racing schedule.
6    (n) The Board and the organizational licensee shall notify
7the Department of the conditions and minimum purses for races
8limited to Illinois conceived and foaled and Illinois foaled
9horses conducted for each organizational licensee conducting a
10thoroughbred racing meeting. The Department of Agriculture
11with the advice and assistance of the Illinois Thoroughbred
12Breeders Fund Advisory Board may allocate monies for purse
13supplements for such races. In determining whether to allocate
14money and the amount, the Department of Agriculture shall
15consider factors, including but not limited to, the amount of
16money appropriated for the Illinois Thoroughbred Breeders Fund
17program, the number of races that may occur, and the
18organizational licensee's purse structure.
19    (o) (Blank).
20(Source: P.A. 98-692, eff. 7-1-14.)
 
21    (230 ILCS 5/30.5)
22    Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
23    (a) The General Assembly declares that it is the policy of
24this State to encourage the breeding of racing quarter horses
25in this State and the ownership of such horses by residents of

 

 

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1this State in order to provide for sufficient numbers of high
2quality racing quarter horses in this State and to establish
3and preserve the agricultural and commercial benefits of such
4breeding and racing industries to the State of Illinois. It is
5the intent of the General Assembly to further this policy by
6the provisions of this Act.
7    (b) There is hereby created non-appropriated trust a
8special fund in the State Treasury to be known as the Illinois
9Racing Quarter Horse Breeders Fund, which is held separately
10from State moneys. Except as provided in subsection (g) of
11Section 27 of this Act, 8.5% of all the moneys received by the
12State as pari-mutuel taxes on quarter horse racing shall be
13paid into the Illinois Racing Quarter Horse Breeders Fund. The
14Illinois Racing Quarter Horse Breeders Fund shall not be
15subject to administrative charges or chargebacks, including,
16but not limited to, those authorized under Section 8h of the
17State Finance Act.
18    (c) The Illinois Racing Quarter Horse Breeders Fund shall
19be administered by the Department of Agriculture with the
20advice and assistance of the Advisory Board created in
21subsection (d) of this Section.
22    (d) The Illinois Racing Quarter Horse Breeders Fund
23Advisory Board shall consist of the Director of the Department
24of Agriculture, who shall serve as Chairman; a member of the
25Illinois Racing Board, designated by it; one representative of
26the organization licensees conducting pari-mutuel quarter

 

 

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1horse racing meetings, recommended by them; 2 representatives
2of the Illinois Running Quarter Horse Association, recommended
3by it; and the Superintendent of Fairs and Promotions from the
4Department of Agriculture. Advisory Board members shall serve
5for 2 years commencing January 1 of each odd numbered year. If
6representatives have not been recommended by January 1 of each
7odd numbered year, the Director of the Department of
8Agriculture may make an appointment for the organization
9failing to so recommend a member of the Advisory Board.
10Advisory Board members shall receive no compensation for their
11services as members but may be reimbursed for all actual and
12necessary expenses and disbursements incurred in the execution
13of their official duties.
14    (e) Moneys in No moneys shall be expended from the Illinois
15Racing Quarter Horse Breeders Fund except as appropriated by
16the General Assembly. Moneys appropriated from the Illinois
17Racing Quarter Horse Breeders Fund shall be expended by the
18Department of Agriculture, with the advice and assistance of
19the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
20for the following purposes only:
21        (1) To provide stakes and awards to be paid to the
22    owners of the winning horses in certain races. This
23    provision is limited to Illinois conceived and foaled
24    horses.
25        (2) To provide an award to the owner or owners of an
26    Illinois conceived and foaled horse that wins a race when

 

 

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1    pari-mutuel wagering is conducted; providing the race is
2    not restricted to Illinois conceived and foaled horses.
3        (3) To provide purse money for an Illinois stallion
4    stakes program.
5        (4) To provide for purses to be distributed for the
6    running of races during the Illinois State Fair and the
7    DuQuoin State Fair exclusively for quarter horses
8    conceived and foaled in Illinois.
9        (5) To provide for purses to be distributed for the
10    running of races at Illinois county fairs exclusively for
11    quarter horses conceived and foaled in Illinois.
12        (6) To provide for purses to be distributed for running
13    races exclusively for quarter horses conceived and foaled
14    in Illinois at locations in Illinois determined by the
15    Department of Agriculture with advice and consent of the
16    Illinois Racing Quarter Horse Breeders Fund Advisory
17    Board.
18        (7) No less than 90% of all moneys appropriated from
19    the Illinois Racing Quarter Horse Breeders Fund shall be
20    expended for the purposes in items (1), (2), (3), (4), and
21    (5) of this subsection (e).
22        (8) To provide for research programs concerning the
23    health, development, and care of racing quarter horses.
24        (9) To provide for dissemination of public information
25    designed to promote the breeding of racing quarter horses
26    in Illinois.

 

 

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

 

 

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1    for registration of such foals that contains false
2    information.
3    (g) The Department of Agriculture, with the advice and
4assistance of the Illinois Racing Quarter Horse Breeders Fund
5Advisory Board, shall provide that certain races limited to
6Illinois conceived and foaled be stakes races and determine the
7total amount of stakes and awards to be paid to the owners of
8the winning horses in such races.
9(Source: P.A. 98-463, eff. 8-16-13.)
 
10    (230 ILCS 5/31)  (from Ch. 8, par. 37-31)
11    Sec. 31. (a) The General Assembly declares that it is the
12policy of this State to encourage the breeding of standardbred
13horses in this State and the ownership of such horses by
14residents of this State in order to provide for: sufficient
15numbers of high quality standardbred horses to participate in
16harness racing meetings in this State, and to establish and
17preserve the agricultural and commercial benefits of such
18breeding and racing industries to the State of Illinois. It is
19the intent of the General Assembly to further this policy by
20the provisions of this Section of this Act.
21    (b) Each organization licensee conducting a harness racing
22meeting pursuant to this Act shall provide for at least two
23races each race program limited to Illinois conceived and
24foaled horses. A minimum of 6 races shall be conducted each
25week limited to Illinois conceived and foaled horses. No horses

 

 

SB0007- 305 -LRB100 06307 AMC 16345 b

1shall be permitted to start in such races unless duly
2registered under the rules of the Department of Agriculture.
3    (b-5) Organization licensees, not including the Illinois
4State Fair or the DuQuoin State Fair, shall provide stake races
5and early closer races for Illinois conceived and foaled horses
6so that purses distributed for such races shall be no less than
717% of total purses distributed for harness racing in that
8calendar year in addition to any stakes payments and starting
9fees contributed by horse owners.
10    (b-10) Each organization licensee conducting a harness
11racing meeting pursuant to this Act shall provide an owner
12award to be paid from the purse account equal to 25% of the
13amount earned by Illinois conceived and foaled horses in races
14that are not restricted to Illinois conceived and foaled
15horses. The owner awards shall not be paid on races below the
16$10,000 claiming class.
17    (c) Conditions of races under subsection (b) shall be
18commensurate with past performance, quality and class of
19Illinois conceived and foaled horses available. If, however,
20sufficient competition cannot be had among horses of that class
21on any day, the races may, with consent of the Board, be
22eliminated for that day and substitute races provided.
23    (d) There is hereby created a special fund of the State
24Treasury to be known as the Illinois Standardbred Breeders
25Fund.
26    During the calendar year 1981, and each year thereafter,

 

 

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1except as provided in subsection (g) of Section 27 of this Act,
2eight and one-half per cent of all the monies received by the
3State as privilege taxes on harness racing meetings shall be
4paid into the Illinois Standardbred Breeders Fund.
5    (e) The Illinois Standardbred Breeders Fund shall be
6administered by the Department of Agriculture with the
7assistance and advice of the Advisory Board created in
8subsection (f) of this Section.
9    (f) The Illinois Standardbred Breeders Fund Advisory Board
10is hereby created. The Advisory Board shall consist of the
11Director of the Department of Agriculture, who shall serve as
12Chairman; the Superintendent of the Illinois State Fair; a
13member of the Illinois Racing Board, designated by it; a
14representative of the largest association of Illinois
15standardbred owners and breeders, recommended by it; a
16representative of a statewide association representing
17agricultural fairs in Illinois, recommended by it, such
18representative to be from a fair at which Illinois conceived
19and foaled racing is conducted; a representative of the
20organization licensees conducting harness racing meetings,
21recommended by them; a representative of the Breeder's
22Committee of the association representing the largest number of
23standardbred owners, breeders, trainers, caretakers, and
24drivers, recommended by it; and a representative of the
25association representing the largest number of standardbred
26owners, breeders, trainers, caretakers, and drivers,

 

 

SB0007- 307 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 308 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 309 -LRB100 06307 AMC 16345 b

1    grants up to a maximum of $7,500 per fair per year for
2    conducting pari-mutuel wagering during the advertised
3    dates of a county fair.
4        9. To pay up to $50,000 annually for the Department of
5    Agriculture to conduct drug testing at county fairs racing
6    standardbred horses.
7        10. To pay up to $100,000 annually for distribution to
8    Illinois county fairs to supplement premiums offered in
9    junior classes.
10        11. To pay up to $100,000 annually for division and
11    equal distribution to the animal sciences department of
12    each Illinois public university system engaged in equine
13    research and education on or before the effective date of
14    this amendatory Act of the 100th General Assembly for
15    equine research and education.
16    (h) (Blank) Whenever the Governor finds that the amount in
17the Illinois Standardbred Breeders Fund is more than the total
18of the outstanding appropriations from such fund, the Governor
19shall notify the State Comptroller and the State Treasurer of
20such fact. The Comptroller and the State Treasurer, upon
21receipt of such notification, shall transfer such excess amount
22from the Illinois Standardbred Breeders Fund to the General
23Revenue Fund.
24    (i) A sum equal to 13% 12 1/2% of the first prize money of
25the gross every purse won by an Illinois conceived and foaled
26horse shall be paid 50% by the organization licensee conducting

 

 

SB0007- 310 -LRB100 06307 AMC 16345 b

1the horse race meeting to the breeder of such winning horse
2from the organization licensee's account and 50% from the purse
3account of the licensee share of the money wagered. Such
4payment shall not reduce any award to the owner of the horse or
5reduce the taxes payable under this Act. Such payment shall be
6delivered by the organization licensee at the end of each
7quarter race meeting.
8    (j) The Department of Agriculture shall, by rule, with the
9assistance and advice of the Illinois Standardbred Breeders
10Fund Advisory Board:
11        1. Qualify stallions for Illinois Standardbred
12    Breeders Fund breeding; such stallion shall be owned by a
13    resident of the State of Illinois or by an Illinois
14    corporation all of whose shareholders, directors, officers
15    and incorporators are residents of the State of Illinois.
16    Such stallion shall stand for service at and within the
17    State of Illinois at the time of a foal's conception, and
18    such stallion must not stand for service at any place, nor
19    may semen from such stallion be transported, outside the
20    State of Illinois during that calendar year in which the
21    foal is conceived and that the owner of the stallion was
22    for the 12 months prior, a resident of Illinois. Foals
23    conceived outside the State of Illinois from shipped semen
24    from a stallion qualified for breeders' awards under this
25    Section are not eligible to participate in the Illinois
26    conceived and foaled program. The articles of agreement of

 

 

SB0007- 311 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 312 -LRB100 06307 AMC 16345 b

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

 

 

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1    2-year-old horses that win multiple major stakes races that
2    are limited to Illinois conceived and foaled horses.
3    (k) The Department of Agriculture, with the advice and
4assistance of the Illinois Standardbred Breeders Fund Advisory
5Board, may allocate monies for purse supplements for such
6races. In determining whether to allocate money and the amount,
7the Department of Agriculture shall consider factors,
8including but not limited to, the amount of money appropriated
9for the Illinois Standardbred Breeders Fund program, the number
10of races that may occur, and an organizational licensee's purse
11structure. The organizational licensee shall notify the
12Department of Agriculture of the conditions and minimum purses
13for races limited to Illinois conceived and foaled horses to be
14conducted by each organizational licensee conducting a harness
15racing meeting for which purse supplements have been
16negotiated.
17    (l) All races held at county fairs and the State Fair which
18receive funds from the Illinois Standardbred Breeders Fund
19shall be conducted in accordance with the rules of the United
20States Trotting Association unless otherwise modified by the
21Department of Agriculture.
22    (m) At all standardbred race meetings held or conducted
23under authority of a license granted by the Board, and at all
24standardbred races held at county fairs which are approved by
25the Department of Agriculture or at the Illinois or DuQuoin
26State Fairs, no one shall jog, train, warm up or drive a

 

 

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1standardbred horse unless he or she is wearing a protective
2safety helmet, with the chin strap fastened and in place, which
3meets the standards and requirements as set forth in the 1984
4Standard for Protective Headgear for Use in Harness Racing and
5Other Equestrian Sports published by the Snell Memorial
6Foundation, or any standards and requirements for headgear the
7Illinois Racing Board may approve. Any other standards and
8requirements so approved by the Board shall equal or exceed
9those published by the Snell Memorial Foundation. Any
10equestrian helmet bearing the Snell label shall be deemed to
11have met those standards and requirements.
12(Source: P.A. 99-756, eff. 8-12-16.)
 
13    (230 ILCS 5/32.1)
14    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
15real estate equalization.
16    (a) In order to encourage new investment in Illinois
17racetrack facilities and mitigate differing real estate tax
18burdens among all racetracks, the licensees affiliated or
19associated with each racetrack that has been awarded live
20racing dates in the current year shall receive an immediate
21pari-mutuel tax credit in an amount equal to the greater of (i)
2250% of the amount of the real estate taxes paid in the prior
23year attributable to that racetrack, or (ii) the amount by
24which the real estate taxes paid in the prior year attributable
25to that racetrack exceeds 60% of the average real estate taxes

 

 

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1paid in the prior year for all racetracks awarded live horse
2racing meets in the current year.
3    Each year, regardless of whether the organization licensee
4conducted live racing in the year of certification, the Board
5shall certify in writing, prior to December 31, the real estate
6taxes paid in that year for each racetrack and the amount of
7the pari-mutuel tax credit that each organization licensee,
8inter-track intertrack wagering licensee, and inter-track
9intertrack wagering location licensee that derives its license
10from such racetrack is entitled in the succeeding calendar
11year. The real estate taxes considered under this Section for
12any racetrack shall be those taxes on the real estate parcels
13and related facilities used to conduct a horse race meeting and
14inter-track wagering at such racetrack under this Act. In no
15event shall the amount of the tax credit under this Section
16exceed the amount of pari-mutuel taxes otherwise calculated
17under this Act. The amount of the tax credit under this Section
18shall be retained by each licensee and shall not be subject to
19any reallocation or further distribution under this Act. The
20Board may promulgate emergency rules to implement this Section.
21    (b) After the end of the 7-year period beginning on January
221 of the calendar year immediately following the effective date
23of this amendatory Act of the 100th General Assembly, the
24organization licensee shall be ineligible to receive a tax
25credit under this Section.
26(Source: P.A. 91-40, eff. 6-25-99; revised 9-2-16.)
 

 

 

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

 

 

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1    (b) The term "hypnotic" as used in this Section includes
2all barbituric acid preparations and derivatives.
3    (c) The term "narcotic" as used in this Section includes
4opium and all its alkaloids, salts, preparations and
5derivatives, cocaine and all its salts, preparations and
6derivatives and substitutes.
7    (d) The provisions of this Section 36 and the treatment
8authorized herein apply to horses entered in and competing in
9race meetings as defined in Section 3.07 of this Act and to
10horses entered in and competing at any county fair.
11(Source: P.A. 79-1185.)
 
12    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)
13    Sec. 40. (a) The imposition of any fine or penalty provided
14in this Act shall not preclude the Board in its rules and
15regulations from imposing a fine or penalty for any other
16action which, in the Board's discretion, is a detriment or
17impediment to horse racing.
18    (b) The Director of Agriculture or his or her authorized
19representative shall impose the following monetary penalties
20and hold administrative hearings as required for failure to
21submit the following applications, lists, or reports within the
22time period, date or manner required by statute or rule or for
23removing a foal from Illinois prior to inspection:
24        (1) late filing of a renewal application for offering
25    or standing stallion for service:

 

 

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

 

 

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1        administrative hearing, $500;
2        (4) late filing of application for foal eligibility
3    certificate:
4            (A) if an application is submitted no more than 30
5        days late, $50;
6            (B) if an application is submitted no more than 90
7        days late, $150;
8            (C) if an application is submitted no more than 150
9        days late, $250; or
10            (D) if an application is submitted more than 150
11        days late, if filing of the application is allowed
12        under an administrative hearing, $500;
13        (5) failure to report the intent to remove a foal from
14    Illinois prior to inspection, identification and
15    certification by a Department of Agriculture investigator,
16    $50; and
17        (6) if a list or report of mares bred is incomplete,
18    $50 per mare not included on the list or report.
19    Any person upon whom monetary penalties are imposed under
20this Section 3 times within a 5-year 5 year period shall have
21any further monetary penalties imposed at double the amounts
22set forth above. All monies assessed and collected for
23violations relating to thoroughbreds shall be paid into the
24Illinois Thoroughbred Breeders Fund. All monies assessed and
25collected for violations relating to standardbreds shall be
26paid into the Illinois Standardbred Breeders Fund.

 

 

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1(Source: P.A. 87-397; revised 9-2-16.)
 
2    (230 ILCS 5/54.75)
3    Sec. 54.75. Horse Racing Equity Trust Fund.
4    (a) There is created a Fund to be known as the Horse Racing
5Equity Trust Fund, which is a non-appropriated trust fund held
6separate and apart from State moneys. The Fund shall consist of
7moneys paid into it by owners licensees under the Illinois
8Riverboat Gambling Act for the purposes described in this
9Section. The Fund shall be administered by the Board. Moneys in
10the Fund shall be distributed as directed and certified by the
11Board in accordance with the provisions of subsection (b).
12    (b) The moneys deposited into the Fund, plus any accrued
13interest on those moneys, shall be distributed within 10 days
14after those moneys are deposited into the Fund as follows:
15        (1) Sixty percent of all moneys distributed under this
16    subsection shall be distributed to organization licensees
17    to be distributed at their race meetings as purses.
18    Fifty-seven percent of the amount distributed under this
19    paragraph (1) shall be distributed for thoroughbred race
20    meetings and 43% shall be distributed for standardbred race
21    meetings. Within each breed, moneys shall be allocated to
22    each organization licensee's purse fund in accordance with
23    the ratio between the purses generated for that breed by
24    that licensee during the prior calendar year and the total
25    purses generated throughout the State for that breed during

 

 

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1    the prior calendar year by licensees in the current
2    calendar year.
3        (2) The remaining 40% of the moneys distributed under
4    this subsection (b) shall be distributed as follows:
5            (A) 11% shall be distributed to any person (or its
6        successors or assigns) who had operating control of a
7        racetrack that conducted live racing in 2002 at a
8        racetrack in a county with at least 230,000 inhabitants
9        that borders the Mississippi River and is a licensee in
10        the current year; and
11            (B) the remaining 89% shall be distributed pro rata
12        according to the aggregate proportion of total handle
13        from wagering on live races conducted in Illinois
14        (irrespective of where the wagers are placed) for
15        calendar years 2004 and 2005 to any person (or its
16        successors or assigns) who (i) had majority operating
17        control of a racing facility at which live racing was
18        conducted in calendar year 2002, (ii) is a licensee in
19        the current year, and (iii) is not eligible to receive
20        moneys under subparagraph (A) of this paragraph (2).
21            The moneys received by an organization licensee
22        under this paragraph (2) shall be used by each
23        organization licensee to improve, maintain, market,
24        and otherwise operate its racing facilities to conduct
25        live racing, which shall include backstretch services
26        and capital improvements related to live racing and the

 

 

SB0007- 322 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 323 -LRB100 06307 AMC 16345 b

1liability company having operating control of a race track is
2found by the Illinois Gaming Board to be unsuitable for an
3electronic gaming license under the Illinois Gambling Act and
4rules of the Gaming Board, that person, firm, corporation, or
5limited liability company shall not be granted an electronic
6gaming license. Each license shall specify the number of gaming
7positions that its holder may operate.
8    An electronic gaming licensee may not permit persons under
921 years of age to be present in its electronic gaming
10facility, but the licensee may accept wagers on live racing and
11inter-track wagers at its electronic gaming facility.
12    (b) For purposes of this subsection, "adjusted gross
13receipts" means an electronic gaming licensee's gross receipts
14less winnings paid to wagerers and shall also include any
15amounts that would otherwise be deducted pursuant to subsection
16(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
17gross receipts by an electronic gaming licensee from electronic
18gaming remaining after the payment of taxes under Section 13 of
19the Illinois Gambling Act shall be distributed as follows:
20        (1) Amounts shall be paid to the purse account at the
21    track at which the organization licensee is conducting
22    racing equal to the following:
23            12.75% of annual adjusted gross receipts up to and
24        including $75,000,000;
25            20% of annual adjusted gross receipts in excess of
26        $75,000,000 but not exceeding $100,000,000;

 

 

SB0007- 324 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 325 -LRB100 06307 AMC 16345 b

1largest number of owners and trainers who race at the
2organization licensee's race meetings.
3    Annually, from the purse account of an organization
4licensee racing thoroughbred horses in Madison County, an
5amount equal to 10% of the electronic gaming receipts placed
6into the purse accounts shall be paid to the Illinois
7Thoroughbred Breeders Fund and shall be used for owner awards;
8a stallion program pursuant to paragraph (3) of subsection (g)
9of Section 30 of this Act; and Illinois conceived and foaled
10stakes races pursuant to paragraph (2) of subsection (g) of
11Section 30 of this Act, as specifically designated by the
12horsemen's association representing the largest number of
13owners and trainers who race at the organization licensee's
14race meetings.
15    Annually, from the purse account of an organization
16licensee conducting thoroughbred races at a race track in
17Madison County, an amount equal to 1% of the electronic gaming
18receipts distributed to purses per subsection (b) of this
19Section 56 shall be paid as follows: 0.33 1/3% to Southern
20Illinois University Department of Animal Sciences for equine
21research and education, an amount equal to 0.33 1/3% of the
22electronic gaming receipts shall be used to operate laundry
23facilities or a kitchen for backstretch workers at that race
24track, and an amount equal to 0.33 1/3% of the electronic
25gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)
26non-profit organization that cares for injured and unwanted

 

 

SB0007- 326 -LRB100 06307 AMC 16345 b

1horses that race at that race track.
2    Annually, from the purse account of organization licensees
3conducting thoroughbred races at race tracks in Cook County,
4$100,000 shall be paid for division and equal distribution to
5the animal sciences department of each Illinois public
6university system engaged in equine research and education on
7or before the effective date of this amendatory Act of the
8100th General Assembly for equine research and education.
9    (d) Annually, from the purse account of an organization
10licensee racing standardbred horses, an amount equal to 15% of
11the electronic gaming receipts placed into that purse account
12shall be paid to the Illinois Colt Stakes Purse Distribution
13Fund. Moneys deposited into the Illinois Colt Stakes Purse
14Distribution Fund shall be used for standardbred racing as
15authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
16subsection (g) of Section 31 of this Act and for bonus awards
17as authorized under paragraph 6 of subsection (j) of Section 31
18of this Act.
 
19    Section 90-40. The Riverboat Gambling Act is amended by
20changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
2111.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
22and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,
237.12, and 7.13 as follows:
 
24    (230 ILCS 10/1)  (from Ch. 120, par. 2401)

 

 

SB0007- 327 -LRB100 06307 AMC 16345 b

1    Sec. 1. Short title. This Act shall be known and may be
2cited as the Illinois Riverboat Gambling Act.
3(Source: P.A. 86-1029.)
 
4    (230 ILCS 10/2)  (from Ch. 120, par. 2402)
5    Sec. 2. Legislative Intent.
6    (a) This Act is intended to benefit the people of the State
7of Illinois by assisting economic development, and promoting
8Illinois tourism, and by increasing the amount of revenues
9available to the State to assist and support education, and to
10defray State expenses, including unpaid bills.
11    (b) While authorization of riverboat and casino gambling
12will enhance investment, beautification, development and
13tourism in Illinois, it is recognized that it will do so
14successfully only if public confidence and trust in the
15credibility and integrity of the gambling operations and the
16regulatory process is maintained. Therefore, regulatory
17provisions of this Act are designed to strictly regulate the
18facilities, persons, associations and practices related to
19gambling operations pursuant to the police powers of the State,
20including comprehensive law enforcement supervision.
21    (c) The Illinois Gaming Board established under this Act
22should, as soon as possible, inform each applicant for an
23owners license of the Board's intent to grant or deny a
24license.
25(Source: P.A. 93-28, eff. 6-20-03.)
 

 

 

SB0007- 328 -LRB100 06307 AMC 16345 b

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

 

 

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17. Notwithstanding any provision in this subsection (c) to the
2contrary, a licensee may conduct gambling at its home dock
3facility as provided in Sections 7 and 11. A licensee may
4conduct riverboat gambling authorized under this Act
5regardless of whether it conducts excursion cruises. A licensee
6may permit the continuous ingress and egress of passengers for
7the purpose of gambling.
8    (d) Gambling that is conducted in accordance with this Act
9using slot machines and video games of chance and other
10electronic gambling games as defined in both this Act and the
11Illinois Horse Racing Act of 1975 is authorized.
12(Source: P.A. 91-40, eff. 6-25-99.)
 
13    (230 ILCS 10/4)  (from Ch. 120, par. 2404)
14    Sec. 4. Definitions. As used in this Act:
15    (a) "Board" means the Illinois Gaming Board.
16    (b) "Occupational license" means a license issued by the
17Board to a person or entity to perform an occupation which the
18Board has identified as requiring a license to engage in
19riverboat gambling, casino gambling, or electronic gaming in
20Illinois.
21    (c) "Gambling game" includes, but is not limited to,
22baccarat, twenty-one, poker, craps, slot machine, video game of
23chance, roulette wheel, klondike table, punchboard, faro
24layout, keno layout, numbers ticket, push card, jar ticket, or
25pull tab which is authorized by the Board as a wagering device

 

 

SB0007- 330 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 331 -LRB100 06307 AMC 16345 b

1to a person or entity to manage gambling operations conducted
2by the State pursuant to Section 7.3.
3    (f) "Dock" means the location where a riverboat moors for
4the purpose of embarking passengers for and disembarking
5passengers from the riverboat.
6    (g) "Gross receipts" means the total amount of money
7exchanged for the purchase of chips, tokens, or electronic
8cards by riverboat patrons.
9    (h) "Adjusted gross receipts" means the gross receipts less
10winnings paid to wagerers.
11    (i) "Cheat" means to alter the selection of criteria which
12determine the result of a gambling game or the amount or
13frequency of payment in a gambling game.
14    (j) (Blank).
15    (k) "Gambling operation" means the conduct of authorized
16gambling games authorized under this Act upon a riverboat or in
17a casino or authorized under this Act and the Illinois Horse
18Racing Act of 1975 at an electronic gaming facility.
19    (l) "License bid" means the lump sum amount of money that
20an applicant bids and agrees to pay the State in return for an
21owners license that is issued or re-issued on or after July 1,
222003.
23    "Table game" means a live gaming apparatus upon which
24gaming is conducted or that determines an outcome that is the
25object of a wager, including, but not limited to, baccarat,
26twenty-one, blackjack, poker, craps, roulette wheel, klondike

 

 

SB0007- 332 -LRB100 06307 AMC 16345 b

1table, punchboard, faro layout, keno layout, numbers ticket,
2push card, jar ticket, pull tab, or other similar games that
3are authorized by the Board as a wagering device under this
4Act. "Table game" does not include slot machines or video games
5of chance.
6    (m) The terms "minority person", "female", and "person with
7a disability" shall have the same meaning as defined in Section
82 of the Business Enterprise for Minorities, Females, and
9Persons with Disabilities Act.
10    "Authority" means the Chicago Casino Development
11Authority.
12    "Casino" means a facility at which lawful gambling is
13authorized as provided in this Act.
14    "Owners license" means a license to conduct riverboat or
15casino gambling operations, but does not include an electronic
16gaming license.
17    "Licensed owner" means a person who holds an owners
18license.
19    "Electronic gaming" means slot machine gambling, video
20game of chance gambling, or gambling with electronic gambling
21games as defined in this Act or defined by the Board that is
22conducted at a race track pursuant to an electronic gaming
23license.
24    "Electronic gaming facility" means the area where the Board
25has authorized electronic gaming at a race track of an
26organization licensee under the Illinois Horse Racing Act of

 

 

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11975 that holds an electronic gaming license.
2    "Electronic gaming license" means a license issued by the
3Board under Section 7.7 of this Act authorizing electronic
4gaming at an electronic gaming facility.
5    "Electronic gaming licensee" means an entity that holds an
6electronic gaming license.
7    "Organization licensee" means an entity authorized by the
8Illinois Racing Board to conduct pari-mutuel wagering in
9accordance with the Illinois Horse Racing Act of 1975. With
10respect only to electronic gaming, "organization licensee"
11includes the authorization for electronic gaming created under
12subsection (a) of Section 56 of the Illinois Horse Racing Act
13of 1975.
14    "Casino operator license" means the license held by the
15person or entity selected by the Authority to manage and
16operate a riverboat or casino within the geographic area of the
17authorized municipality pursuant to this Act and the Chicago
18Casino Development Authority Act.
19(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
 
20    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
21    Sec. 5. Gaming Board.
22    (a) (1) There is hereby established the Illinois Gaming
23Board, which shall have the powers and duties specified in this
24Act and in the Chicago Casino Development Authority Act, and
25all other powers necessary and proper to fully and effectively

 

 

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1execute this Act for the purpose of administering, regulating,
2and enforcing the system of riverboat and casino gambling and
3electronic gaming established by this Act and by the Chicago
4Casino Development Authority Act. Its jurisdiction shall
5extend under this Act and the Chicago Casino Development
6Authority Act to every person, association, corporation,
7partnership and trust involved in riverboat and casino gambling
8operations and electronic gaming in the State of Illinois.
9    (2) The Board shall consist of 5 members to be appointed by
10the Governor with the advice and consent of the Senate, one of
11whom shall be designated by the Governor to be chairperson
12chairman. Each member shall have a reasonable knowledge of the
13practice, procedure and principles of gambling operations.
14Each member shall either be a resident of Illinois or shall
15certify that he or she will become a resident of Illinois
16before taking office.
17    On and after the effective date of this amendatory Act of
18the 100th General Assembly, new appointees to the Board must
19include the following:
20        (A) One member who has received, at a minimum, a
21    bachelor's degree from an accredited school and at least 10
22    years of verifiable training and experience in the fields
23    of investigation and law enforcement.
24        (B) One member who is a certified public accountant
25    with experience in auditing and with knowledge of complex
26    corporate structures and transactions.

 

 

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1        (C) One member who has 5 years' experience as a
2    principal, senior officer, or director of a company or
3    business with either material responsibility for the daily
4    operations and management of the overall company or
5    business or material responsibility for the policy making
6    of the company or business.
7        (D) One member who is a lawyer licensed to practice law
8    in Illinois.
9    Notwithstanding any provision of this subsection (a), the
10requirements of subparagraphs (A) through (D) of this paragraph
11(2) shall not apply to any person reappointed pursuant to
12paragraph (3).
13    No more than 3 members of the Board may be from the same
14political party. The Board should reflect the ethnic, cultural,
15and geographic diversity of the State. No Board member shall,
16within a period of one year immediately preceding nomination,
17have been employed or received compensation or fees for
18services from a person or entity, or its parent or affiliate,
19that has engaged in business with the Board, a licensee, or a
20licensee under the Illinois Horse Racing Act of 1975. Board
21members must publicly disclose all prior affiliations with
22gaming interests, including any compensation, fees, bonuses,
23salaries, and other reimbursement received from a person or
24entity, or its parent or affiliate, that has engaged in
25business with the Board, a licensee, or a licensee under the
26Illinois Horse Racing Act of 1975. This disclosure must be made

 

 

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1within 30 days after nomination but prior to confirmation by
2the Senate and must be made available to the members of the
3Senate. At least one member shall be experienced in law
4enforcement and criminal investigation, at least one member
5shall be a certified public accountant experienced in
6accounting and auditing, and at least one member shall be a
7lawyer licensed to practice law in Illinois.
8    (3) The terms of office of the Board members shall be 3
9years, except that the terms of office of the initial Board
10members appointed pursuant to this Act will commence from the
11effective date of this Act and run as follows: one for a term
12ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
13a term ending July 1, 1993. Upon the expiration of the
14foregoing terms, the successors of such members shall serve a
15term for 3 years and until their successors are appointed and
16qualified for like terms. Vacancies in the Board shall be
17filled for the unexpired term in like manner as original
18appointments. Each member of the Board shall be eligible for
19reappointment at the discretion of the Governor with the advice
20and consent of the Senate.
21    (4) Each member of the Board shall receive $300 for each
22day the Board meets and for each day the member conducts any
23hearing pursuant to this Act. Each member of the Board shall
24also be reimbursed for all actual and necessary expenses and
25disbursements incurred in the execution of official duties.
26    (5) No person shall be appointed a member of the Board or

 

 

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1continue to be a member of the Board who is, or whose spouse,
2child or parent is, a member of the board of directors of, or a
3person financially interested in, any gambling operation
4subject to the jurisdiction of this Board, or any race track,
5race meeting, racing association or the operations thereof
6subject to the jurisdiction of the Illinois Racing Board. No
7Board member shall hold any other public office. No person
8shall be a member of the Board who is not of good moral
9character or who has been convicted of, or is under indictment
10for, a felony under the laws of Illinois or any other state, or
11the United States.
12    (5.5) No member of the Board shall engage in any political
13activity. For the purposes of this Section, "political" means
14any activity in support of or in connection with any campaign
15for federal, State, or local elective office or any political
16organization, but does not include activities (i) relating to
17the support or opposition of any executive, legislative, or
18administrative action (as those terms are defined in Section 2
19of the Lobbyist Registration Act), (ii) relating to collective
20bargaining, or (iii) that are otherwise in furtherance of the
21person's official State duties or governmental and public
22service functions.
23    (6) Any member of the Board may be removed by the Governor
24for neglect of duty, misfeasance, malfeasance, or nonfeasance
25in office or for engaging in any political activity.
26    (7) Before entering upon the discharge of the duties of his

 

 

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1office, each member of the Board shall take an oath that he
2will faithfully execute the duties of his office according to
3the laws of the State and the rules and regulations adopted
4therewith and shall give bond to the State of Illinois,
5approved by the Governor, in the sum of $25,000. Every such
6bond, when duly executed and approved, shall be recorded in the
7office of the Secretary of State. Whenever the Governor
8determines that the bond of any member of the Board has become
9or is likely to become invalid or insufficient, he shall
10require such member forthwith to renew his bond, which is to be
11approved by the Governor. Any member of the Board who fails to
12take oath and give bond within 30 days from the date of his
13appointment, or who fails to renew his bond within 30 days
14after it is demanded by the Governor, shall be guilty of
15neglect of duty and may be removed by the Governor. The cost of
16any bond given by any member of the Board under this Section
17shall be taken to be a part of the necessary expenses of the
18Board.
19    (7.5) For the examination of all mechanical,
20electromechanical, or electronic table games, slot machines,
21slot accounting systems, and other electronic gaming equipment
22for compliance with this Act, the Board may utilize the
23services of one or more independent outside testing
24laboratories that have been accredited by a national
25accreditation body and that, in the judgment of the Board, are
26qualified to perform such examinations.

 

 

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1    (8) The Board shall employ such personnel as may be
2necessary to carry out its functions and shall determine the
3salaries of all personnel, except those personnel whose
4salaries are determined under the terms of a collective
5bargaining agreement. No person shall be employed to serve the
6Board who is, or whose spouse, parent or child is, an official
7of, or has a financial interest in or financial relation with,
8any operator engaged in gambling operations within this State
9or any organization engaged in conducting horse racing within
10this State. For the one year immediately preceding employment,
11an employee shall not have been employed or received
12compensation or fees for services from a person or entity, or
13its parent or affiliate, that has engaged in business with the
14Board, a licensee, or a licensee under the Illinois Horse
15Racing Act of 1975. Any employee violating these prohibitions
16shall be subject to termination of employment. In addition, all
17Board members and employees are subject to the restrictions set
18forth in Section 5-45 of the State Officials and Employees
19Ethics Act.
20    (9) An Administrator shall perform any and all duties that
21the Board shall assign him. The salary of the Administrator
22shall be determined by the Board and, in addition, he shall be
23reimbursed for all actual and necessary expenses incurred by
24him in discharge of his official duties. The Administrator
25shall keep records of all proceedings of the Board and shall
26preserve all records, books, documents and other papers

 

 

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1belonging to the Board or entrusted to its care. The
2Administrator shall devote his full time to the duties of the
3office and shall not hold any other office or employment.
4    (b) The Board shall have general responsibility for the
5implementation of this Act. Its duties include, without
6limitation, the following:
7        (1) To decide promptly and in reasonable order all
8    license applications. Any party aggrieved by an action of
9    the Board denying, suspending, revoking, restricting or
10    refusing to renew a license may request a hearing before
11    the Board. A request for a hearing must be made to the
12    Board in writing within 5 days after service of notice of
13    the action of the Board. Notice of the action of the Board
14    shall be served either by personal delivery or by certified
15    mail, postage prepaid, to the aggrieved party. Notice
16    served by certified mail shall be deemed complete on the
17    business day following the date of such mailing. The Board
18    shall conduct all requested hearings promptly and in
19    reasonable order;
20        (2) To conduct all hearings pertaining to civil
21    violations of this Act or rules and regulations promulgated
22    hereunder;
23        (3) To promulgate such rules and regulations as in its
24    judgment may be necessary to protect or enhance the
25    credibility and integrity of gambling operations
26    authorized by this Act and the regulatory process

 

 

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1    hereunder;
2        (4) To provide for the establishment and collection of
3    all license and registration fees and taxes imposed by this
4    Act and the rules and regulations issued pursuant hereto.
5    All such fees and taxes shall be deposited into the State
6    Gaming Fund;
7        (5) To provide for the levy and collection of penalties
8    and fines for the violation of provisions of this Act and
9    the rules and regulations promulgated hereunder. All such
10    fines and penalties shall be deposited into the Education
11    Assistance Fund, created by Public Act 86-0018, of the
12    State of Illinois;
13        (6) To be present through its inspectors and agents any
14    time gambling operations are conducted on any riverboat, in
15    any casino, or at any electronic gaming facility for the
16    purpose of certifying the revenue thereof, receiving
17    complaints from the public, and conducting such other
18    investigations into the conduct of the gambling games and
19    the maintenance of the equipment as from time to time the
20    Board may deem necessary and proper;
21        (7) To review and rule upon any complaint by a licensee
22    regarding any investigative procedures of the State which
23    are unnecessarily disruptive of gambling operations. The
24    need to inspect and investigate shall be presumed at all
25    times. The disruption of a licensee's operations shall be
26    proved by clear and convincing evidence, and establish

 

 

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1    that: (A) the procedures had no reasonable law enforcement
2    purposes, and (B) the procedures were so disruptive as to
3    unreasonably inhibit gambling operations;
4        (8) To hold at least one meeting each quarter of the
5    fiscal year. In addition, special meetings may be called by
6    the Chairman or any 2 Board members upon 72 hours written
7    notice to each member. All Board meetings shall be subject
8    to the Open Meetings Act. Three members of the Board shall
9    constitute a quorum, and 3 votes shall be required for any
10    final determination by the Board. The Board shall keep a
11    complete and accurate record of all its meetings. A
12    majority of the members of the Board shall constitute a
13    quorum for the transaction of any business, for the
14    performance of any duty, or for the exercise of any power
15    which this Act requires the Board members to transact,
16    perform or exercise en banc, except that, upon order of the
17    Board, one of the Board members or an administrative law
18    judge designated by the Board may conduct any hearing
19    provided for under this Act or by Board rule and may
20    recommend findings and decisions to the Board. The Board
21    member or administrative law judge conducting such hearing
22    shall have all powers and rights granted to the Board in
23    this Act. The record made at the time of the hearing shall
24    be reviewed by the Board, or a majority thereof, and the
25    findings and decision of the majority of the Board shall
26    constitute the order of the Board in such case;

 

 

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1        (9) To maintain records which are separate and distinct
2    from the records of any other State board or commission.
3    Such records shall be available for public inspection and
4    shall accurately reflect all Board proceedings;
5        (10) To file a written annual report with the Governor
6    on or before March 1 each year and such additional reports
7    as the Governor may request. The annual report shall
8    include a statement of receipts and disbursements by the
9    Board, actions taken by the Board, and any additional
10    information and recommendations which the Board may deem
11    valuable or which the Governor may request;
12        (11) (Blank);
13        (12) (Blank);
14        (13) To assume responsibility for administration and
15    enforcement of the Video Gaming Act; and
16        (13.1) To assume responsibility for the administration
17    and enforcement of operations at electronic gaming
18    facilities pursuant to this Act and the Illinois Horse
19    Racing Act of 1975;
20        (13.2) To assume responsibility for the administration
21    and enforcement of gambling operations at the Chicago
22    Casino Development Authority's casino pursuant to this Act
23    and the Chicago Casino Development Authority Act; and
24        (14) To adopt, by rule, a code of conduct governing
25    Board members and employees that ensure, to the maximum
26    extent possible, that persons subject to this Code avoid

 

 

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1    situations, relationships, or associations that may
2    represent or lead to a conflict of interest.
3    Internal controls and changes submitted by licensees must
4be reviewed and either approved or denied with cause within 90
5days after receipt of submission is deemed final by the
6Illinois Gaming Board. In the event an internal control
7submission or change does not meet the standards set by the
8Board, staff of the Board must provide technical assistance to
9the licensee to rectify such deficiencies within 90 days after
10the initial submission and the revised submission must be
11reviewed and approved or denied with cause within 90 days after
12the date the revised submission is deemed final by the Board.
13For the purposes of this paragraph, "with cause" means that the
14approval of the submission would jeopardize the integrity of
15gaming. In the event the Board staff has not acted within the
16timeframe, the submission shall be deemed approved.
17    (c) The Board shall have jurisdiction over and shall
18supervise all gambling operations governed by this Act and the
19Chicago Casino Development Authority Act. The Board shall have
20all powers necessary and proper to fully and effectively
21execute the provisions of this Act and the Chicago Casino
22Development Authority Act, including, but not limited to, the
23following:
24        (1) To investigate applicants and determine the
25    eligibility of applicants for licenses and to select among
26    competing applicants the applicants which best serve the

 

 

SB0007- 345 -LRB100 06307 AMC 16345 b

1    interests of the citizens of Illinois.
2        (2) To have jurisdiction and supervision over all
3    riverboat gambling operations authorized under this Act
4    and the Chicago Casino Development Authority Act in this
5    State and all persons in places on riverboats where
6    gambling operations are conducted.
7        (3) To promulgate rules and regulations for the purpose
8    of administering the provisions of this Act and the Chicago
9    Casino Development Authority Act and to prescribe rules,
10    regulations and conditions under which all riverboat
11    gambling operations subject to this Act and the Chicago
12    Casino Development Authority Act in the State shall be
13    conducted. Such rules and regulations are to provide for
14    the prevention of practices detrimental to the public
15    interest and for the best interests of riverboat gambling,
16    including rules and regulations regarding the inspection
17    of electronic gaming facilities, casinos, and such
18    riverboats, and the review of any permits or licenses
19    necessary to operate a riverboat, casino, or electronic
20    gaming facilities under any laws or regulations applicable
21    to riverboats, casinos, or electronic gaming facilities
22    and to impose penalties for violations thereof.
23        (4) To enter the office, riverboats, casinos,
24    electronic gaming facilities, and other facilities, or
25    other places of business of a licensee, where evidence of
26    the compliance or noncompliance with the provisions of this

 

 

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1    Act and the Chicago Casino Development Authority Act is
2    likely to be found.
3        (5) To investigate alleged violations of this Act, the
4    Chicago Casino Development Authority Act, or the rules of
5    the Board and to take appropriate disciplinary action
6    against a licensee or a holder of an occupational license
7    for a violation, or institute appropriate legal action for
8    enforcement, or both.
9        (6) To adopt standards for the licensing of all persons
10    and entities under this Act and the Chicago Casino
11    Development Authority Act, as well as for electronic or
12    mechanical gambling games, and to establish fees for such
13    licenses.
14        (7) To adopt appropriate standards for all electronic
15    gaming facilities, riverboats, casinos, and other
16    facilities authorized under this Act and the Chicago Casino
17    Development Authority Act.
18        (8) To require that the records, including financial or
19    other statements of any licensee under this Act and the
20    Chicago Casino Development Authority Act, shall be kept in
21    such manner as prescribed by the Board and that any such
22    licensee involved in the ownership or management of
23    gambling operations submit to the Board an annual balance
24    sheet and profit and loss statement, list of the
25    stockholders or other persons having a 1% or greater
26    beneficial interest in the gambling activities of each

 

 

SB0007- 347 -LRB100 06307 AMC 16345 b

1    licensee, and any other information the Board deems
2    necessary in order to effectively administer this Act and
3    the Chicago Casino Development Authority Act and all rules,
4    regulations, orders and final decisions promulgated under
5    this Act and the Chicago Casino Development Authority Act.
6        (9) To conduct hearings, issue subpoenas for the
7    attendance of witnesses and subpoenas duces tecum for the
8    production of books, records and other pertinent documents
9    in accordance with the Illinois Administrative Procedure
10    Act, and to administer oaths and affirmations to the
11    witnesses, when, in the judgment of the Board, it is
12    necessary to administer or enforce this Act, the Chicago
13    Casino Development Authority Act, or the Board rules.
14        (10) To prescribe a form to be used by any licensee
15    involved in the ownership or management of gambling
16    operations as an application for employment for their
17    employees.
18        (11) To revoke or suspend licenses, other than the
19    license issued to the Chicago Casino Development
20    Authority, as the Board may see fit and in compliance with
21    applicable laws of the State regarding administrative
22    procedures, and to review applications for the renewal of
23    licenses. The Board may suspend an owners license (other
24    than the license issued to the Chicago Casino Development
25    Authority), electronic gaming license, or casino operator
26    license, without notice or hearing upon a determination

 

 

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1    that the safety or health of patrons or employees is
2    jeopardized by continuing a gambling operation conducted
3    under that license riverboat's operation. The suspension
4    may remain in effect until the Board determines that the
5    cause for suspension has been abated. The Board may revoke
6    an the owners license (other than the license issued to the
7    Chicago Casino Development Authority), electronic gaming
8    license, or casino operator license upon a determination
9    that the licensee owner has not made satisfactory progress
10    toward abating the hazard.
11        (12) To eject or exclude or authorize the ejection or
12    exclusion of, any person from riverboat gambling
13    facilities where that such person is in violation of this
14    Act or the Chicago Casino Development Authority Act, rules
15    and regulations thereunder, or final orders of the Board,
16    or where such person's conduct or reputation is such that
17    his or her presence within the riverboat gambling
18    facilities may, in the opinion of the Board, call into
19    question the honesty and integrity of the gambling
20    operations or interfere with the orderly conduct thereof;
21    provided that the propriety of such ejection or exclusion
22    is subject to subsequent hearing by the Board.
23        (13) To require all licensees of gambling operations to
24    utilize a cashless wagering system whereby all players'
25    money is converted to tokens, electronic cards, or chips
26    which shall be used only for wagering in the gambling

 

 

SB0007- 349 -LRB100 06307 AMC 16345 b

1    establishment.
2        (14) (Blank).
3        (15) To suspend, revoke or restrict licenses, other
4    than the license issued to the Chicago Casino Development
5    Authority, to require the removal of a licensee or an
6    employee of a licensee for a violation of this Act, the
7    Chicago Casino Development Authority Act, or a Board rule
8    or for engaging in a fraudulent practice, and to impose
9    civil penalties of up to $5,000 against individuals and up
10    to $10,000 or an amount equal to the daily gross receipts,
11    whichever is larger, against licensees for each violation
12    of any provision of the Act, the Chicago Casino Development
13    Authority Act, any rules adopted by the Board, any order of
14    the Board or any other action which, in the Board's
15    discretion, is a detriment or impediment to riverboat
16    gambling operations.
17        (16) To hire employees to gather information, conduct
18    investigations and carry out any other tasks contemplated
19    under this Act or the Chicago Casino Development Authority
20    Act.
21        (17) To establish minimum levels of insurance to be
22    maintained by licensees.
23        (18) To authorize a licensee to sell or serve alcoholic
24    liquors, wine or beer as defined in the Liquor Control Act
25    of 1934 on board a riverboat or in a casino and to have
26    exclusive authority to establish the hours for sale and

 

 

SB0007- 350 -LRB100 06307 AMC 16345 b

1    consumption of alcoholic liquor on board a riverboat or in
2    a casino, notwithstanding any provision of the Liquor
3    Control Act of 1934 or any local ordinance, and regardless
4    of whether the riverboat makes excursions. The
5    establishment of the hours for sale and consumption of
6    alcoholic liquor on board a riverboat or in a casino is an
7    exclusive power and function of the State. A home rule unit
8    may not establish the hours for sale and consumption of
9    alcoholic liquor on board a riverboat or in a casino. This
10    subdivision (18) amendatory Act of 1991 is a denial and
11    limitation of home rule powers and functions under
12    subsection (h) of Section 6 of Article VII of the Illinois
13    Constitution.
14        (19) After consultation with the U.S. Army Corps of
15    Engineers, to establish binding emergency orders upon the
16    concurrence of a majority of the members of the Board
17    regarding the navigability of water, relative to
18    excursions, in the event of extreme weather conditions,
19    acts of God or other extreme circumstances.
20        (20) To delegate the execution of any of its powers
21    under this Act or the Chicago Casino Development Authority
22    Act for the purpose of administering and enforcing this
23    Act, the Chicago Casino Development Authority Act, and the
24    its rules adopted by the Board under both Acts and
25    regulations hereunder.
26        (20.5) To approve any contract entered into on its

 

 

SB0007- 351 -LRB100 06307 AMC 16345 b

1    behalf.
2        (20.6) To appoint investigators to conduct
3    investigations, searches, seizures, arrests, and other
4    duties imposed under this Act, as deemed necessary by the
5    Board. These investigators have and may exercise all of the
6    rights and powers of peace officers, provided that these
7    powers shall be limited to offenses or violations occurring
8    or committed in a casino, in an electronic gaming facility,
9    or on a riverboat or dock, as defined in subsections (d)
10    and (f) of Section 4, or as otherwise provided by this Act,
11    the Chicago Casino Development Authority Act, or any other
12    law.
13        (20.7) To contract with the Department of State Police
14    for the use of trained and qualified State police officers
15    and with the Department of Revenue for the use of trained
16    and qualified Department of Revenue investigators to
17    conduct investigations, searches, seizures, arrests, and
18    other duties imposed under this Act or the Chicago Casino
19    Development Authority Act and to exercise all of the rights
20    and powers of peace officers, provided that the powers of
21    Department of Revenue investigators under this subdivision
22    (20.7) shall be limited to offenses or violations occurring
23    or committed in a casino, in an electronic gaming facility,
24    or on a riverboat or dock, as defined in subsections (d)
25    and (f) of Section 4, or as otherwise provided by this Act
26    or any other law. In the event the Department of State

 

 

SB0007- 352 -LRB100 06307 AMC 16345 b

1    Police or the Department of Revenue is unable to fill
2    contracted police or investigative positions, the Board
3    may appoint investigators to fill those positions pursuant
4    to subdivision (20.6).
5        (21) To adopt rules concerning the conduct of
6    electronic gaming.
7        (22) To have the same jurisdiction and supervision over
8    casinos and electronic gaming facilities as the Board has
9    over riverboats, including, but not limited to, the power
10    to (i) investigate, review, and approve contracts as that
11    power is applied to riverboats, (ii) adopt rules for
12    administering the provisions of this Act or the Chicago
13    Casino Development Authority Act, (iii) adopt standards
14    for the licensing of all persons involved with a casino or
15    electronic gaming facility, (iv) investigate alleged
16    violations of this Act by any person involved with a casino
17    or electronic gaming facility, and (v) require that
18    records, including financial or other statements of any
19    casino or electronic gaming facility, shall be kept in such
20    manner as prescribed by the Board.
21        (23) To supervise and regulate the Chicago Casino
22    Development Authority in accordance with the Chicago
23    Casino Development Authority Act and the provisions of this
24    Act.
25        (24) (21) To take any other action as may be reasonable
26    or appropriate to enforce this Act, the Chicago Casino

 

 

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1    Development Authority Act, and the rules adopted by the
2    Board under both Acts and regulations hereunder.
3    All Board powers enumerated in this Section in relation to
4licensees shall apply equally to the holder of any casino
5management contract entered into pursuant to the Chicago Casino
6Development Authority Act.
7    (d) The Board may seek and shall receive the cooperation of
8the Department of State Police in conducting background
9investigations of applicants and in fulfilling its
10responsibilities under this Section. Costs incurred by the
11Department of State Police as a result of such cooperation
12shall be paid by the Board in conformance with the requirements
13of Section 2605-400 of the Department of State Police Law (20
14ILCS 2605/2605-400).
15    (e) The Board must authorize to each investigator and to
16any other employee of the Board exercising the powers of a
17peace officer a distinct badge that, on its face, (i) clearly
18states that the badge is authorized by the Board and (ii)
19contains a unique identifying number. No other badge shall be
20authorized by the Board.
21(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
 
22    (230 ILCS 10/5.1)  (from Ch. 120, par. 2405.1)
23    Sec. 5.1. Disclosure of records.
24    (a) Notwithstanding any applicable statutory provision to
25the contrary, the Board shall, on written request from any

 

 

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1person, provide information furnished by an applicant or
2licensee concerning the applicant or licensee, his products,
3services or gambling enterprises and his business holdings, as
4follows:
5        (1) The name, business address and business telephone
6    number of any applicant or licensee.
7        (2) An identification of any applicant or licensee
8    including, if an applicant or licensee is not an
9    individual, the names and addresses of all stockholders and
10    directors, if the entity is a corporation; the names and
11    addresses of all members, if the entity is a limited
12    liability company; the names and addresses of all partners,
13    both general and limited, if the entity is a partnership;
14    and the names and addresses of all beneficiaries, if the
15    entity is a trust the state of incorporation or
16    registration, the corporate officers, and the identity of
17    all shareholders or participants. If an applicant or
18    licensee has a pending registration statement filed with
19    the Securities and Exchange Commission, only the names of
20    those persons or entities holding interest of 5% or more
21    must be provided.
22        (3) An identification of any business, including, if
23    applicable, the state of incorporation or registration, in
24    which an applicant or licensee or an applicant's or
25    licensee's spouse or children has an equity interest of
26    more than 1%. If an applicant or licensee is a corporation,

 

 

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1    partnership or other business entity, the applicant or
2    licensee shall identify any other corporation, partnership
3    or business entity in which it has an equity interest of 1%
4    or more, including, if applicable, the state of
5    incorporation or registration. This information need not
6    be provided by a corporation, partnership or other business
7    entity that has a pending registration statement filed with
8    the Securities and Exchange Commission.
9        (4) Whether an applicant or licensee has been indicted,
10    convicted, pleaded guilty or nolo contendere, or forfeited
11    bail concerning any criminal offense under the laws of any
12    jurisdiction, either felony or misdemeanor (except for
13    traffic violations), including the date, the name and
14    location of the court, arresting agency and prosecuting
15    agency, the case number, the offense, the disposition and
16    the location and length of incarceration.
17        (5) Whether an applicant or licensee has had any
18    license or certificate issued by a licensing authority in
19    Illinois or any other jurisdiction denied, restricted,
20    suspended, revoked or not renewed and a statement
21    describing the facts and circumstances concerning the
22    denial, restriction, suspension, revocation or
23    non-renewal, including the licensing authority, the date
24    each such action was taken, and the reason for each such
25    action.
26        (6) Whether an applicant or licensee has ever filed or

 

 

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1    had filed against it a proceeding in bankruptcy or has ever
2    been involved in any formal process to adjust, defer,
3    suspend or otherwise work out the payment of any debt
4    including the date of filing, the name and location of the
5    court, the case and number of the disposition.
6        (7) Whether an applicant or licensee has filed, or been
7    served with a complaint or other notice filed with any
8    public body, regarding the delinquency in the payment of,
9    or a dispute over the filings concerning the payment of,
10    any tax required under federal, State or local law,
11    including the amount, type of tax, the taxing agency and
12    time periods involved.
13        (8) A statement listing the names and titles of all
14    public officials or officers of any unit of government, and
15    relatives of said public officials or officers who,
16    directly or indirectly, own any financial interest in, have
17    any beneficial interest in, are the creditors of or hold
18    any debt instrument issued by, or hold or have any interest
19    in any contractual or service relationship with, an
20    applicant or licensee.
21        (9) Whether an applicant or licensee has made, directly
22    or indirectly, any political contribution, or any loans,
23    donations or other payments, to any candidate or office
24    holder, within 5 years from the date of filing the
25    application, including the amount and the method of
26    payment.

 

 

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1        (10) The name and business telephone number of the
2    counsel representing an applicant or licensee in matters
3    before the Board.
4        (11) A description of any proposed or approved
5    riverboat or casino gaming or electronic gaming operation,
6    including the type of boat, home dock or casino or
7    electronic gaming location, expected economic benefit to
8    the community, anticipated or actual number of employees,
9    any statement from an applicant or licensee regarding
10    compliance with federal and State affirmative action
11    guidelines, projected or actual admissions and projected
12    or actual adjusted gross gaming receipts.
13        (12) A description of the product or service to be
14    supplied by an applicant for a supplier's license.
15    (b) Notwithstanding any applicable statutory provision to
16the contrary, the Board shall, on written request from any
17person, also provide the following information:
18        (1) The amount of the wagering tax and admission tax
19    paid daily to the State of Illinois by the holder of an
20    owner's license.
21        (2) Whenever the Board finds an applicant for an
22    owner's license unsuitable for licensing, a copy of the
23    written letter outlining the reasons for the denial.
24        (3) Whenever the Board has refused to grant leave for
25    an applicant to withdraw his application, a copy of the
26    letter outlining the reasons for the refusal.

 

 

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1    (c) Subject to the above provisions, the Board shall not
2disclose any information which would be barred by:
3        (1) Section 7 of the Freedom of Information Act; or
4        (2) The statutes, rules, regulations or
5    intergovernmental agreements of any jurisdiction.
6    (d) The Board may assess fees for the copying of
7information in accordance with Section 6 of the Freedom of
8Information Act.
9(Source: P.A. 96-1392, eff. 1-1-11.)
 
10    (230 ILCS 10/5.3 new)
11    Sec. 5.3. Ethical conduct.
12    (a) Officials and employees of the corporate authority of a
13host community must carry out their duties and responsibilities
14in such a manner as to promote and preserve public trust and
15confidence in the integrity and conduct of gaming.
16    (b) Officials and employees of the corporate authority of a
17host community shall not use or attempt to use his or her
18official position to secure or attempt to secure any privilege,
19advantage, favor, or influence for himself or herself or
20others.
21    (c) Officials and employees of the corporate authority of a
22host community may not have a financial interest, directly or
23indirectly, in his or her own name or in the name of any other
24person, partnership, association, trust, corporation, or other
25entity in any contract or subcontract for the performance of

 

 

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

 

 

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

 

 

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1of the corporate authority of a host community may not, during
2the period that the person is an official of the corporate
3authority or for a period of 2 years immediately after leaving
4such office or employment, knowingly accept employment or
5receive compensation or fees for services from a person or
6entity, or its parent or affiliate, that has engaged in
7business with the riverboat or casino that is located in the
8host community that resulted in contracts with an aggregate
9value of at least $25,000 or if that official or employee has
10made a decision that directly applied to the person or entity,
11or its parent or affiliate.
12    (i) Officials and employees of the corporate authority of a
13host community shall not attempt, in any way, to influence any
14person or entity doing business with the riverboat or casino
15that is located in the host community or any officer, agent, or
16employee thereof to hire or contract with any person or entity
17for any compensated work.
18    (j) Any communication between an official of the corporate
19authority of a host community and any applicant for an owners
20license in the host community, or an officer, director, or
21employee of a riverboat or casino in the host community,
22concerning any matter relating in any way to gaming shall be
23disclosed to the Board. Such disclosure shall be in writing by
24the official within 30 days after the communication and shall
25be filed with the Board. Disclosure must consist of the date of
26the communication, the identity and job title of the person

 

 

SB0007- 362 -LRB100 06307 AMC 16345 b

1with whom the communication was made, a brief summary of the
2communication, the action requested or recommended, all
3responses made, the identity and job title of the person making
4the response, and any other pertinent information. Public
5disclosure of the written summary provided to the Board and the
6Gaming Board shall be subject to the exemptions provided under
7the Freedom of Information Act.
8    This subsection (j) shall not apply to communications
9regarding traffic, law enforcement, security, environmental
10issues, city services, transportation, or other routine
11matters concerning the ordinary operations of the riverboat or
12casino. For purposes of this subsection (j), "ordinary
13operations" means operations relating to the casino or
14riverboat facility other than the conduct of gambling
15activities, and "routine matters" includes the application
16for, issuance of, renewal of, and other processes associated
17with municipal permits and licenses.
18    (k) Any official or employee who violates any provision of
19this Section is guilty of a Class 4 felony.
20    (l) For purposes of this Section, "host community" or "host
21municipality" means a unit of local government that contains a
22riverboat or casino within its borders, but does not include
23the City of Chicago or the Chicago Casino Development
24Authority.
 
25    (230 ILCS 10/6)  (from Ch. 120, par. 2406)

 

 

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1    Sec. 6. Application for Owners License.
2    (a) A qualified person may apply to the Board for an owners
3license to conduct a riverboat gambling operation as provided
4in this Act. The application shall be made on forms provided by
5the Board and shall contain such information as the Board
6prescribes, including but not limited to the identity of the
7riverboat on which such gambling operation is to be conducted,
8if applicable, and the exact location where such riverboat or
9casino will be located docked, a certification that the
10riverboat will be registered under this Act at all times during
11which gambling operations are conducted on board, detailed
12information regarding the ownership and management of the
13applicant, and detailed personal information regarding the
14applicant. Any application for an owners license to be
15re-issued on or after June 1, 2003 shall also include the
16applicant's license bid in a form prescribed by the Board.
17Information provided on the application shall be used as a
18basis for a thorough background investigation which the Board
19shall conduct with respect to each applicant. An incomplete
20application shall be cause for denial of a license by the
21Board.
22    (a-5) In addition to any other information required under
23this Section, each application for an owners license must
24include the following information:
25        (1) The history and success of the applicant and each
26    person and entity disclosed under subsection (c) of this

 

 

SB0007- 364 -LRB100 06307 AMC 16345 b

1    Section in developing tourism facilities ancillary to
2    gaming, if applicable.
3        (2) The likelihood that granting a license to the
4    applicant will lead to the creation of quality, living wage
5    jobs and permanent, full-time jobs for residents of the
6    State and residents of the unit of local government that is
7    designated as the home dock of the proposed facility where
8    gambling is to be conducted by the applicant.
9        (3) The projected number of jobs that would be created
10    if the license is granted and the projected number of new
11    employees at the proposed facility where gambling is to be
12    conducted by the applicant.
13        (4) The record, if any, of the applicant and its
14    developer in meeting commitments to local agencies,
15    community-based organizations, and employees at other
16    locations where the applicant or its developer has
17    performed similar functions as they would perform if the
18    applicant were granted a license.
19        (5) Identification of adverse effects that might be
20    caused by the proposed facility where gambling is to be
21    conducted by the applicant, including the costs of meeting
22    increased demand for public health care, child care, public
23    transportation, affordable housing, and social services,
24    and a plan to mitigate those adverse effects.
25        (6) The record, if any, of the applicant and its
26    developer regarding compliance with:

 

 

SB0007- 365 -LRB100 06307 AMC 16345 b

1            (A) federal, state, and local discrimination, wage
2        and hour, disability, and occupational and
3        environmental health and safety laws; and
4            (B) state and local labor relations and employment
5        laws.
6        (7) The applicant's record, if any, in dealing with its
7    employees and their representatives at other locations.
8        (8) A plan concerning the utilization of
9    minority-owned and female-owned businesses and concerning
10    the hiring of minorities and females.
11        (9) Evidence the applicant used its best efforts to
12    reach a goal of 25% ownership representation by minority
13    persons and 5% ownership representation by females.
14    (b) Applicants shall submit with their application all
15documents, resolutions, and letters of support from the
16governing body that represents the municipality or county
17wherein the licensee will be located dock.
18    (c) Each applicant shall disclose the identity of every
19person or entity , association, trust or corporation having a
20greater than 1% direct or indirect pecuniary interest in the
21riverboat gambling operation with respect to which the license
22is sought. If the disclosed entity is a trust, the application
23shall disclose the names and addresses of all the
24beneficiaries; if a corporation, the names and addresses of all
25stockholders and directors; if a partnership, the names and
26addresses of all partners, both general and limited.

 

 

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

 

 

SB0007- 367 -LRB100 06307 AMC 16345 b

1Board with respect to the applicant's application. These fees
2shall be paid into the State Police Services Fund.
3    (f) The licensed owner shall be the person primarily
4responsible for the boat or casino itself. Only one riverboat
5gambling operation may be authorized by the Board on any
6riverboat or in any casino. The applicant must identify the
7each riverboat or premises it intends to use and certify that
8the riverboat or premises: (1) has the authorized capacity
9required in this Act; (2) is accessible to persons with
10disabilities; and (3) is fully registered and licensed in
11accordance with any applicable laws.
12    (g) A person who knowingly makes a false statement on an
13application is guilty of a Class A misdemeanor.
14(Source: P.A. 99-143, eff. 7-27-15.)
 
15    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
16    Sec. 7. Owners Licenses.
17    (a) The Board shall issue owners licenses to persons or
18entities , firms or corporations which apply for such licenses
19upon payment to the Board of the non-refundable license fee as
20provided in subsection (e) or (e-5) set by the Board, upon
21payment of a $25,000 license fee for the first year of
22operation and a $5,000 license fee for each succeeding year and
23upon a determination by the Board that the applicant is
24eligible for an owners license pursuant to this Act, the
25Chicago Casino Development Authority Act, and the rules of the

 

 

SB0007- 368 -LRB100 06307 AMC 16345 b

1Board. From the effective date of this amendatory Act of the
295th General Assembly until (i) 3 years after the effective
3date of this amendatory Act of the 95th General Assembly, (ii)
4the date any organization licensee begins to operate a slot
5machine or video game of chance under the Illinois Horse Racing
6Act of 1975 or this Act, (iii) the date that payments begin
7under subsection (c-5) of Section 13 of the Act, or (iv) the
8wagering tax imposed under Section 13 of this Act is increased
9by law to reflect a tax rate that is at least as stringent or
10more stringent than the tax rate contained in subsection (a-3)
11of Section 13, or (v) when an owners licensee holding a license
12issued pursuant to Section 7.1 of this Act begins conducting
13gaming, whichever occurs first, as a condition of licensure and
14as an alternative source of payment for those funds payable
15under subsection (c-5) of Section 13 of this the Riverboat
16Gambling Act, any owners licensee that holds or receives its
17owners license on or after the effective date of this
18amendatory Act of the 94th General Assembly, other than an
19owners licensee operating a riverboat with adjusted gross
20receipts in calendar year 2004 of less than $200,000,000, must
21pay into the Horse Racing Equity Trust Fund, in addition to any
22other payments required under this Act, an amount equal to 3%
23of the adjusted gross receipts received by the owners licensee.
24The payments required under this Section shall be made by the
25owners licensee to the State Treasurer no later than 3:00
26o'clock p.m. of the day after the day when the adjusted gross

 

 

SB0007- 369 -LRB100 06307 AMC 16345 b

1receipts were received by the owners licensee. A person, firm
2or entity corporation is ineligible to receive an owners
3license if:
4        (1) the person has been convicted of a felony under the
5    laws of this State, any other state, or the United States;
6        (2) the person has been convicted of any violation of
7    Article 28 of the Criminal Code of 1961 or the Criminal
8    Code of 2012, or substantially similar laws of any other
9    jurisdiction;
10        (3) the person has submitted an application for a
11    license under this Act or the Chicago Casino Development
12    Authority Act which contains false information;
13        (4) the person is a member of the Board;
14        (5) a person defined in (1), (2), (3) or (4) is an
15    officer, director or managerial employee of the entity firm
16    or corporation;
17        (6) the entity firm or corporation employs a person
18    defined in (1), (2), (3) or (4) who participates in the
19    management or operation of gambling operations authorized
20    under this Act or the Chicago Casino Development Authority
21    Act;
22        (7) (blank); or
23        (8) a license of the person or entity , firm or
24    corporation issued under this Act or the Chicago Casino
25    Development Authority Act, or a license to own or operate
26    gambling facilities in any other jurisdiction, has been

 

 

SB0007- 370 -LRB100 06307 AMC 16345 b

1    revoked.
2    The Board is expressly prohibited from making changes to
3the requirement that licensees make payment into the Horse
4Racing Equity Trust Fund without the express authority of the
5Illinois General Assembly and making any other rule to
6implement or interpret this amendatory Act of the 95th General
7Assembly. For the purposes of this paragraph, "rules" is given
8the meaning given to that term in Section 1-70 of the Illinois
9Administrative Procedure Act.
10    (a-1) Upon approval of the members of the Chicago Casino
11Development Board, the Chicago Casino Development Authority's
12executive director, and the Chicago casino operator licensee,
13the Board shall issue an owners license to the Chicago Casino
14Development Authority that authorizes the conduct of gambling
15operations in a casino located in the City of Chicago.
16    (b) In determining whether to grant an owners license to an
17applicant other than the Chicago Casino Development Authority,
18the Board shall consider:
19        (1) the character, reputation, experience and
20    financial integrity of the applicants and of any other or
21    separate person that either:
22            (A) controls, directly or indirectly, such
23        applicant, or
24            (B) is controlled, directly or indirectly, by such
25        applicant or by a person which controls, directly or
26        indirectly, such applicant;

 

 

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1        (2) the facilities or proposed facilities for the
2    conduct of riverboat gambling;
3        (3) the highest prospective total revenue to be derived
4    by the State from the conduct of riverboat gambling;
5        (4) the extent to which the ownership of the applicant
6    reflects the diversity of the State by including minority
7    persons, females, and persons with a disability and the
8    good faith affirmative action plan of each applicant to
9    recruit, train and upgrade minority persons, females, and
10    persons with a disability in all employment
11    classifications;
12        (5) the financial ability of the applicant to purchase
13    and maintain adequate liability and casualty insurance;
14        (6) whether the applicant has adequate capitalization
15    to provide and maintain, for the duration of a license, a
16    riverboat or casino;
17        (7) the extent to which the applicant exceeds or meets
18    other standards for the issuance of an owners license which
19    the Board may adopt by rule; and
20        (8) the The amount of the applicant's license bid; .
21        (9) the extent to which the applicant or the proposed
22    host municipality plans to enter into revenue sharing
23    agreements with communities other than the host
24    municipality; and
25        (10) the extent to which the ownership of an applicant
26    includes the most qualified number of minority persons,

 

 

SB0007- 372 -LRB100 06307 AMC 16345 b

1    females, and persons with a disability.
2    (c) Each owners license shall specify the place where the
3casino riverboats shall operate or the riverboat shall operate
4and dock.
5    (d) Each applicant shall submit with his application, on
6forms provided by the Board, 2 sets of his fingerprints.
7    (e) In addition to any licenses authorized under subsection
8(e-5) of this Section, the The Board may issue up to 10
9licenses authorizing the holders of such licenses to own
10riverboats. In the application for an owners license, the
11applicant shall state the dock at which the riverboat is based
12and the water on which the riverboat will be located. The Board
13shall issue 5 licenses to become effective not earlier than
14January 1, 1991. Three of such licenses shall authorize
15riverboat gambling on the Mississippi River, or, with approval
16by the municipality in which the riverboat was docked on August
177, 2003 and with Board approval, be authorized to relocate to a
18new location, in a municipality that (1) borders on the
19Mississippi River or is within 5 miles of the city limits of a
20municipality that borders on the Mississippi River and (2), on
21August 7, 2003, had a riverboat conducting riverboat gambling
22operations pursuant to a license issued under this Act; one of
23which shall authorize riverboat gambling from a home dock in
24the city of East St. Louis. One other license shall authorize
25riverboat gambling on the Illinois River in Tazewell County or,
26with Board approval, shall authorize the riverboat to relocate

 

 

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1to a new location that is no more than 10 miles away from its
2original location, in a municipality that borders on the
3Illinois River or is within 5 miles of the city limits of a
4municipality that borders on the Illinois River south of
5Marshall County. The Board shall issue one additional license
6to become effective not earlier than March 1, 1992, which shall
7authorize riverboat gambling on the Des Plaines River in Will
8County. The Board may issue 4 additional licenses to become
9effective not earlier than March 1, 1992. In determining the
10water upon which riverboats will operate, the Board shall
11consider the economic benefit which riverboat gambling confers
12on the State, and shall seek to assure that all regions of the
13State share in the economic benefits of riverboat gambling.
14    In granting all licenses, the Board may give favorable
15consideration to economically depressed areas of the State, to
16applicants presenting plans which provide for significant
17economic development over a large geographic area, and to
18applicants who currently operate non-gambling riverboats in
19Illinois. The Board shall review all applications for owners
20licenses, and shall inform each applicant of the Board's
21decision. The Board may grant an owners license to an applicant
22that has not submitted the highest license bid, but if it does
23not select the highest bidder, the Board shall issue a written
24decision explaining why another applicant was selected and
25identifying the factors set forth in this Section that favored
26the winning bidder. The fee for issuance or renewal of a

 

 

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1license pursuant to this subsection (e) shall be $100,000.
2    (e-5) In addition to licenses authorized under subsection
3(e) of this Section:
4        (1) the Board shall issue one owners license
5    authorizing the conduct of casino gambling in the City of
6    Chicago;
7        (2) the Board may issue one owners license authorizing
8    the conduct of riverboat gambling in the City of Danville;
9        (3) the Board may issue one owners license authorizing
10    the conduct of riverboat gambling located in one of the
11    following municipalities in Lake County: Park City, North
12    Chicago, or Waukegan;
13        (4) the Board may issue one owners license authorizing
14    the conduct of riverboat gambling in the City of Rockford;
15        (5) the Board may issue one owners license authorizing
16    the conduct of riverboat gambling in a municipality that is
17    wholly or partially located in one of the following
18    townships of Cook County: Bloom, Bremen, Calumet, Rich,
19    Thornton, or Worth Township; and
20        (6) the Board may issue one owners license authorizing
21    the conduct of riverboat gambling in the unincorporated
22    area of Williamson County adjacent to the Big Muddy River.
23    Each application for a license pursuant to this subsection
24(e-5) shall be submitted to the Board no later than 6 months
25after the effective date of this amendatory Act of the 100th
26General Assembly and shall include the non-refundable

 

 

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1application fee and the non-refundable background
2investigation fee as provided in subsection (d) of Section 6 of
3this Act. In the event that an applicant submits an application
4for a license pursuant to this subsection (e-5) prior to the
5effective date of this amendatory Act of the 100th General
6Assembly, such applicant shall submit the non-refundable
7application fee and background investigation fee as provided in
8subsection (d) of Section 6 of this Act no later than 6 months
9after the effective date of this amendatory Act of the 100th
10General Assembly.
11    The Board shall consider issuing a license pursuant to
12paragraphs (2) through (6) of this subsection only after the
13corporate authority of the municipality or the county board of
14the county in which the riverboat shall be located has
15certified to the Board the following:
16        (i) that the applicant has negotiated with the
17    corporate authority or county board in good faith;
18        (ii) that the applicant and the corporate authority or
19    county board have mutually agreed on the permanent location
20    of the riverboat;
21        (iii) that the applicant and the corporate authority or
22    county board have mutually agreed on the temporary location
23    of the riverboat;
24        (iv) that the applicant and the corporate authority or
25    the county board have mutually agreed on the percentage of
26    revenues that will be shared with the municipality or

 

 

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1    county, if any; and
2        (v) that the applicant and the corporate authority or
3    county board have mutually agreed on any zoning, licensing,
4    public health, or other issues that are within the
5    jurisdiction of the municipality or county.
6    At least 7 days before the corporate authority of a
7municipality or county board of the county submits a
8certification to the Board concerning items (i) through (v) of
9this subsection, it shall hold a public hearing to discuss
10items (i) through (v), as well as any other details concerning
11the proposed riverboat in the municipality or county. The
12corporate authority or county board must subsequently
13memorialize the details concerning the proposed riverboat in a
14resolution that must be adopted by a majority of the corporate
15authority or county board before any certification is sent to
16the Board. The Board shall not alter, amend, change, or
17otherwise interfere with any agreement between the applicant
18and the corporate authority of the municipality or county board
19of the county regarding the location of any temporary or
20permanent facility.
21    In addition, prior to the Board issuing the owners license
22authorized under paragraph (4) of subsection (e-5), an impact
23study shall be completed to determine what location in the city
24will provide the greater impact to the region, including the
25creation of jobs and the generation of tax revenue.
26    (e-10) The licenses authorized under subsection (e-5) of

 

 

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1this Section shall be issued within 12 months after the date
2the license application is submitted. If the Board does not
3issue the licenses within that time period, then the Board
4shall give a written explanation to the applicant as to why it
5has not reached a determination and when it reasonably expects
6to make a determination. The fee for the issuance or renewal of
7a license issued pursuant to this subsection (e-10) shall be
8$100,000. Additionally, a licensee located outside of Cook
9County shall pay a minimum initial fee of $17,500 per gaming
10position, and a licensee located in Cook County shall pay a
11minimum initial fee of $30,000 per gaming position. The initial
12fees payable under this subsection (e-10) shall be deposited
13into the Gaming Facilities Fee Revenue Fund.
14    (e-15) Each licensee of a license authorized under
15subsection (e-5) of this Section shall make a reconciliation
16payment 3 years after the date the licensee begins operating in
17an amount equal to 75% of the adjusted gross receipts for the
18most lucrative 12-month period of operations, minus an amount
19equal to the initial payment per gaming position paid by the
20specific licensee. If this calculation results in a negative
21amount, then the licensee is not entitled to any reimbursement
22of fees previously paid. This reconciliation payment may be
23made in installments over a period of no more than 2 years,
24subject to Board approval. Any installment payments shall
25include an annual market interest rate as determined by the
26Board. All payments by licensees under this subsection (e-15)

 

 

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1shall be deposited into the Gaming Facilities Fee Revenue Fund.
2    (e-20) In addition to any other revocation powers granted
3to the Board under this Act, the Board may revoke the owners
4license of a licensee, other than the Chicago Casino
5Development Authority, which fails to begin conducting
6gambling within 15 months of receipt of the Board's approval of
7the application if the Board determines that license revocation
8is in the best interests of the State.
9    (f) The first 10 owners licenses issued under this Act
10shall permit the holder to own up to 2 riverboats and equipment
11thereon for a period of 3 years after the effective date of the
12license. Holders of the first 10 owners licenses must pay the
13annual license fee for each of the 3 years during which they
14are authorized to own riverboats.
15    (g) Upon the termination, expiration, or revocation of each
16of the first 10 licenses, which shall be issued for a 3 year
17period, all licenses are renewable annually upon payment of the
18fee and a determination by the Board that the licensee
19continues to meet all of the requirements of this Act and the
20Board's rules. However, for licenses renewed on or after May 1,
211998, including casino operator licenses, renewal shall be for
22a period of 4 years, unless the Board sets a shorter period.
23Notwithstanding any provision in this subsection (g) to the
24contrary, any license that is awarded to the Chicago Casino
25Development Authority shall not expire, but it shall be subject
26to the provisions of this Act and the rules of the Board.

 

 

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1    (h) An owners license, except for an owners license issued
2under subsection (e-5) of this Section, shall entitle the
3licensee to own up to 2 riverboats.
4    An owners licensee of a casino or riverboat that is located
5in the City of Chicago pursuant to paragraph (1) of subsection
6(e-5) of this Section shall limit the number of gaming
7positions to 4,000 for such owner. An owners licensee
8authorized under paragraphs (2) through (5) of subsection (e-5)
9of this Section shall limit the number of gaming positions to
101,600 for any such owners license, except as further provided
11in subsection (h-10) of this Section. An owners licensee
12authorized under paragraph (6) of subsection (e-5) of this
13Section A licensee shall limit the number of gaming positions
14gambling participants to 1,200 for any such owner. The initial
15fee for each gaming position obtained on or after the effective
16date of this amendatory Act of the 100th General Assembly shall
17be a minimum of $17,500 for licensees not located in Cook
18County and a minimum of $30,000 for licensees located in Cook
19County, in addition to the reconciliation payment, as set forth
20in subsections (e-15) or (h-5) of this Section owners license.
21    Each owners licensee shall reserve its gaming positions
22within 90 days after issuance of its owners license. The Board
23may grant an extension to this 90-day period, provided that the
24owners licensee submits a written request and explanation as to
25why it is unable to reserve its positions within the 90-day
26period.

 

 

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1    A licensee may operate both of its riverboats concurrently,
2provided that the total number of gaming positions gambling
3participants on both riverboats does not exceed the limit
4established pursuant to this subsection and subsection (h-10)
5of this Section 1,200. Riverboats licensed to operate on the
6Mississippi River and the Illinois River south of Marshall
7County shall have an authorized capacity of at least 500
8persons. Any other riverboat licensed under this Act shall have
9an authorized capacity of at least 400 persons.
10    (h-5) An owners licensee who conducted gambling operations
11prior to January 1, 2012 and purchases positions pursuant to
12subsection (h-10) of this Section on or after the effective
13date of this amendatory Act of the 100th General Assembly must
14pay a minimum initial fee of $17,500 per gaming position if the
15licensee is located outside Cook County and a minimum initial
16fee of $30,000 per gaming position if the licensee is located
17in Cook County, as stated in subsection (h) of this Section.
18These initial fees shall be deposited into the Gaming
19Facilities Fee Revenue Fund. Additionally, that owners
20licensee shall make a reconciliation payment 3 years after any
21additional gaming positions obtained pursuant to subsection
22(h-10) begin operating in an amount equal to 75% of the owners
23licensee's average gross receipts for the most lucrative
2412-month period of operations minus an amount equal to the
25initial fee that the owners licensee paid per additional gaming
26position. For purposes of this subsection (h-5), "average gross

 

 

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1receipts" means (i) the increase in adjusted gross receipts for
2the most lucrative 12-month period of operations over the
3adjusted gross receipts for 2017, multiplied by (ii) the
4percentage derived by dividing the number of additional gaming
5positions that an owners licensee had obtained pursuant to
6subsection (h-10) by the total number of gaming positions
7operated by the owners licensee. If this calculation results in
8a negative amount, then the owners licensee is not entitled to
9any reimbursement of fees previously paid. This reconciliation
10payment may be made in installments over a period of no more
11than 2 years, subject to Board approval. Any installment
12payments shall include an annual market interest rate as
13determined by the Board. These reconciliation payments shall be
14deposited into the Gaming Facilities Fee Revenue Fund.
15    (h-10) For owners licensees authorized under paragraphs
16(2) through (5) of subsection (e-5) of this Section, the
17application for such new owners licenses shall ask the
18applicants to stipulate in their applications the number of
19gaming positions each applicant would like to reserve, up to
201,600 gaming positions. Once the last winning applicant for
21each of these owners licenses has been selected by the Board,
22the Board shall publish the number of gaming positions reserved
23and unreserved by each winning applicant, shall accept requests
24for additional gaming positions from any winning applicants or
25owners licensee who initially reserved 1,600 gaming positions,
26and shall allocate expeditiously the unreserved gaming

 

 

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1positions to such requesting winning applicants or owners
2licensees in a manner to maximize revenue to the State;
3provided, however, that no owners licensee (other than the
4Chicago Casino Development Authority) shall obtain more than
52,000 positions total. The Board may allocate any such unused
6gaming positions through a competitive bidding process
7pursuant to Section 7.5 of this Act.
8    In the event that not all of the unreserved gaming
9positions described in the first and second paragraphs of this
10subsection (h-10) were requested by owners licensees and
11applicants, then until there are no longer unreserved gaming
12positions, the Board periodically shall govern a process to
13allocate the unreserved gaming positions in a manner to
14maximize revenue to the State.
15    Unreserved gaming positions retained from and allocated to
16owners licensees by the Board pursuant to this subsection
17(h-10) shall not be allocated to electronic gaming licensees
18pursuant to subsection (e) of Section 7.7 of this Act.
19    (i) A licensed owner is authorized to apply to the Board
20for and, if approved therefor, to receive all licenses from the
21Board necessary for the operation of a riverboat or a casino,
22including a liquor license, a license to prepare and serve food
23for human consumption, and other necessary licenses. All use,
24occupation and excise taxes which apply to the sale of food and
25beverages in this State and all taxes imposed on the sale or
26use of tangible personal property apply to such sales aboard

 

 

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1the riverboat or in the casino.
2    (j) The Board may issue or re-issue a license authorizing a
3riverboat to dock in a municipality or approve a relocation
4under Section 11.2 only if, prior to the issuance or
5re-issuance of the license or approval, the governing body of
6the municipality in which the riverboat will dock has by a
7majority vote approved the docking of riverboats in the
8municipality. The Board may issue or re-issue a license
9authorizing a riverboat to dock in areas of a county outside
10any municipality or approve a relocation under Section 11.2
11only if, prior to the issuance or re-issuance of the license or
12approval, the governing body of the county has by a majority
13vote approved of the docking of riverboats within such areas.
14    (k) An owners licensee may conduct land-based gambling
15operations upon approval by the Board.
16    (l) An owners licensee may conduct gaming at a temporary
17facility pending the construction of a permanent facility or
18the remodeling or relocation of an existing facility to
19accommodate gaming participants for up to 24 months after the
20temporary facility begins to conduct gaming. Upon request by an
21owners licensee and upon a showing of good cause by the owners
22licensee, the Board shall extend the period during which the
23licensee may conduct gaming at a temporary facility by up to 12
24months. The Board shall make rules concerning the conduct of
25gaming from temporary facilities.
26(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 

 

 

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1    (230 ILCS 10/7.3)
2    Sec. 7.3. State conduct of gambling operations.
3    (a) If, after reviewing each application for a re-issued
4license, the Board determines that the highest prospective
5total revenue to the State would be derived from State conduct
6of the gambling operation in lieu of re-issuing the license,
7the Board shall inform each applicant of its decision. The
8Board shall thereafter have the authority, without obtaining an
9owners license, to conduct casino or riverboat gambling
10operations as previously authorized by the terminated,
11expired, revoked, or nonrenewed license through a licensed
12manager selected pursuant to an open and competitive bidding
13process as set forth in Section 7.5 and as provided in Section
147.4.
15    (b) The Board may locate any casino or riverboat on which a
16gambling operation is conducted by the State in any home dock
17or other location authorized by Section 3(c) upon receipt of
18approval from a majority vote of the governing body of the
19municipality or county, as the case may be, in which the
20riverboat will dock.
21    (c) The Board shall have jurisdiction over and shall
22supervise all gambling operations conducted by the State
23provided for in this Act and the Chicago Casino Development
24Authority Act and shall have all powers necessary and proper to
25fully and effectively execute the provisions of this Act and

 

 

SB0007- 385 -LRB100 06307 AMC 16345 b

1the Chicago Casino Development Authority Act relating to
2gambling operations conducted by the State.
3    (d) The maximum number of owners licenses authorized under
4Section 7 7(e) shall be reduced by one for each instance in
5which the Board authorizes the State to conduct a casino or
6riverboat gambling operation under subsection (a) in lieu of
7re-issuing a license to an applicant under Section 7.1.
8(Source: P.A. 93-28, eff. 6-20-03.)
 
9    (230 ILCS 10/7.5)
10    Sec. 7.5. Competitive Bidding. When the Board determines
11that (i) it will re-issue an owners license pursuant to an open
12and competitive bidding process, as set forth in Section 7.1,
13(ii) or that it will issue a managers license pursuant to an
14open and competitive bidding process, as set forth in Section
157.4, (iii) it will issue an owners license pursuant to an open
16and competitive bidding process, as set forth in Section 7.12,
17or (iv) it will allocate unused gaming positions pursuant to an
18open and competitive bidding process, as set forth in
19subsection (h-10) of Section 7, the open and competitive
20bidding process shall adhere to the following procedures:
21    (1) The Board shall make applications for owners and
22managers licenses available to the public and allow a
23reasonable time for applicants to submit applications to the
24Board.
25    (2) During the filing period for owners or managers license

 

 

SB0007- 386 -LRB100 06307 AMC 16345 b

1applications, the Board may retain the services of an
2investment banking firm to assist the Board in conducting the
3open and competitive bidding process.
4    (3) After receiving all of the bid proposals, the Board
5shall open all of the proposals in a public forum and disclose
6the prospective owners or managers names, venture partners, if
7any, and, in the case of applicants for owners licenses, the
8locations of the proposed development sites.
9    (4) The Board shall summarize the terms of the proposals
10and may make this summary available to the public.
11    (5) The Board shall evaluate the proposals within a
12reasonable time and select no more than 3 final applicants to
13make presentations of their proposals to the Board.
14    (6) The final applicants shall make their presentations to
15the Board on the same day during an open session of the Board.
16    (7) As soon as practicable after the public presentations
17by the final applicants, the Board, in its discretion, may
18conduct further negotiations among the 3 final applicants.
19During such negotiations, each final applicant may increase its
20license bid or otherwise enhance its bid proposal. At the
21conclusion of such negotiations, the Board shall select the
22winning proposal. In the case of negotiations for an owners
23license, the Board may, at the conclusion of such negotiations,
24make the determination allowed under Section 7.3(a).
25    (8) Upon selection of a winning bid, the Board shall
26evaluate the winning bid within a reasonable period of time for

 

 

SB0007- 387 -LRB100 06307 AMC 16345 b

1licensee suitability in accordance with all applicable
2statutory and regulatory criteria.
3    (9) If the winning bidder is unable or otherwise fails to
4consummate the transaction, (including if the Board determines
5that the winning bidder does not satisfy the suitability
6requirements), the Board may, on the same criteria, select from
7the remaining bidders or make the determination allowed under
8Section 7.3(a).
9(Source: P.A. 93-28, eff. 6-20-03.)
 
10    (230 ILCS 10/7.7 new)
11    Sec. 7.7. Electronic gaming.
12    (a) The General Assembly finds that the horse racing and
13riverboat gambling industries share many similarities and
14collectively comprise the bulk of the State's gaming industry.
15One feature common to both industries is that each is highly
16regulated by the State of Illinois. The General Assembly
17further finds, however, that despite their shared features each
18industry is distinct from the other in that horse racing is and
19continues to be intimately tied to Illinois' agricultural
20economy and is, at its core, a spectator sport. This
21distinction requires the General Assembly to utilize different
22methods to regulate and promote the horse racing industry
23throughout the State. The General Assembly finds that in order
24to promote live horse racing as a spectator sport in Illinois
25and the agricultural economy of this State, it is necessary to

 

 

SB0007- 388 -LRB100 06307 AMC 16345 b

1allow electronic gaming at Illinois race tracks as an ancillary
2use given the success of other states in increasing live racing
3purse accounts and improving the quality of horses
4participating in horse race meetings.
5    (b) The Illinois Gaming Board shall award one electronic
6gaming license to each person or entity having operating
7control of a race track that applies under Section 56 of the
8Illinois Horse Racing Act of 1975, subject to the application
9and eligibility requirements of this Section. Within 60 days
10after the effective date of this amendatory Act of the 100th
11General Assembly, a person or entity having operating control
12of a race track may submit an application for an electronic
13gaming license. The application shall be made on such forms as
14provided by the Board and shall contain such information as the
15Board prescribes, including, but not limited to, the identity
16of any race track at which electronic gaming will be conducted,
17detailed information regarding the ownership and management of
18the applicant, and detailed personal information regarding the
19applicant. The application shall specify the number of gaming
20positions the applicant intends to use and the place where the
21electronic gaming facility will operate. A person who knowingly
22makes a false statement on an application is guilty of a Class
23A misdemeanor.
24    Each applicant shall disclose the identity of every person
25or entity having a direct or indirect pecuniary interest
26greater than 1% in any race track with respect to which the

 

 

SB0007- 389 -LRB100 06307 AMC 16345 b

1license is sought. If the disclosed entity is a corporation,
2the applicant shall disclose the names and addresses of all
3stockholders and directors. If the disclosed entity is a
4limited liability company, the applicant shall disclose the
5names and addresses of all members and managers. If the
6disclosed entity is a partnership, the applicant shall disclose
7the names and addresses of all partners, both general and
8limited. If the disclosed entity is a trust, the applicant
9shall disclose the names and addresses of all beneficiaries.
10    An application shall be filed and considered in accordance
11with the rules of the Board. Each application for an electronic
12gaming license shall include a non-refundable application fee
13of $100,000. In addition, a non-refundable fee of $50,000 shall
14be paid at the time of filing to defray the costs associated
15with background investigations conducted by the Board. If the
16costs of the background investigation exceed $50,000, the
17applicant shall pay the additional amount to the Board within 7
18days after a request by the Board. If the costs of the
19investigation are less than $50,000, the applicant shall
20receive a refund of the remaining amount. All information,
21records, interviews, reports, statements, memoranda, or other
22data supplied to or used by the Board in the course of this
23review or investigation of an applicant for an electronic
24gaming license under this Act shall be privileged and strictly
25confidential and shall be used only for the purpose of
26evaluating an applicant for an electronic gaming license or a

 

 

SB0007- 390 -LRB100 06307 AMC 16345 b

1renewal. Such information, records, interviews, reports,
2statements, memoranda, or other data shall not be admissible as
3evidence nor discoverable in any action of any kind in any
4court or before any tribunal, board, agency or person, except
5for any action deemed necessary by the Board. The application
6fee shall be deposited into the Gaming Facilities Fee Revenue
7Fund.
8    Each applicant shall submit with his or her application, on
9forms provided by the Board, 2 sets of his or her fingerprints.
10The Board shall charge each applicant a fee set by the
11Department of State Police to defray the costs associated with
12the search and classification of fingerprints obtained by the
13Board with respect to the applicant's application. This fee
14shall be paid into the State Police Services Fund.
15    (c) The Board shall determine within 120 days after
16receiving an application for an electronic gaming license
17whether to grant an electronic gaming license to the applicant.
18If the Board does not make a determination within that time
19period, then the Board shall give a written explanation to the
20applicant as to why it has not reached a determination and when
21it reasonably expects to make a determination.
22    The electronic gaming licensee shall purchase up to the
23amount of electronic gaming positions authorized under this Act
24within 120 days after receiving its electronic gaming license.
25If an electronic gaming licensee is prepared to purchase the
26electronic gaming positions, but is temporarily prohibited

 

 

SB0007- 391 -LRB100 06307 AMC 16345 b

1from doing so by order of a court of competent jurisdiction or
2the Board, then the 120-day period is tolled until a resolution
3is reached.
4    An electronic gaming license shall authorize its holder to
5conduct gaming under this Act at its racetracks on the same
6days of the year and hours of the day that owner licenses are
7allowed to operate under approval of the Board.
8    A license to conduct electronic gaming and any renewal of
9an electronic gaming license shall authorize electronic gaming
10for a period of 4 years. The fee for the issuance or renewal of
11an electronic gaming license shall be $100,000.
12    (d) To be eligible to conduct electronic gaming, a person
13or entity having operating control of a race track must (i)
14obtain an electronic gaming license, (ii) hold an organization
15license under the Illinois Horse Racing Act of 1975, (iii) hold
16an inter-track wagering license, (iv) pay an initial fee of
17$30,000 per gaming position from electronic gaming licensees
18where electronic gaming is conducted in Cook County and $17,500
19for electronic gaming licensees where electronic gaming is
20located outside of Cook County before beginning to conduct
21electronic gaming plus make the reconciliation payment
22required under subsection (i), (v) conduct at least 240 live
23races at each track per year or for a licensee that is only
24authorized 350 gaming positions pursuant to subsection (d) of
25Section 7.7 of this Act, have a fully operational facility
26running at least 96 live races over a period of at least 15

 

 

SB0007- 392 -LRB100 06307 AMC 16345 b

1days per year until such time as the total number of gaming
2positions is increased to 900, (vi) meet the requirements of
3subsection (a) of Section 56 of the Illinois Horse Racing Act
4of 1975, (vii) for organization licensees conducting
5standardbred race meetings that had an open backstretch in
62009, keep backstretch barns and dormitories open and
7operational year-round unless a lesser schedule is mutually
8agreed to by the organization licensee and the horsemen's
9association racing at that organization licensee's race
10meeting, (viii) for organization licensees conducting
11thoroughbred race meetings, the organization licensee must
12maintain accident medical expense liability insurance coverage
13of $1,000,000 for jockeys, and (ix) meet all other requirements
14of this Act that apply to owners licensees. Only those persons
15or entities (or its successors or assigns) that had operating
16control of a race track and held an inter-track wagering
17license authorized by the Illinois Racing Board in 2009 are
18eligible.
19    An electronic gaming licensee may enter into a joint
20venture with a licensed owner to own, manage, conduct, or
21otherwise operate the electronic gaming licensee's electronic
22gaming facilities, unless the electronic gaming licensee has a
23parent company or other affiliated company that is, directly or
24indirectly, wholly owned by a parent company that is also
25licensed to conduct electronic gaming, casino gaming, or their
26equivalent in another state.

 

 

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1    All payments by licensees under this subsection (c) shall
2be deposited into the Gaming Facilities Fee Revenue Fund.
3    (e) A person or entity is ineligible to receive an
4electronic gaming license if:
5        (1) the person or entity has been convicted of a felony
6    under the laws of this State, any other state, or the
7    United States, including a conviction under the Racketeer
8    Influenced and Corrupt Organizations Act;
9        (2) the person or entity has been convicted of any
10    violation of Article 28 of the Criminal Code of 2012, or
11    substantially similar laws of any other jurisdiction;
12        (3) the person or entity has submitted an application
13    for a license under this Act that contains false
14    information;
15        (4) the person is a member of the Board;
16        (5) a person defined in (1), (2), (3), or (4) of this
17    subsection (e) is an officer, director, or managerial
18    employee of the entity;
19        (6) the person or entity employs a person defined in
20    (1), (2), (3), or (4) of this subsection (e) who
21    participates in the management or operation of gambling
22    operations authorized under this Act; or
23        (7) a license of the person or entity issued under this
24    Act or a license to own or operate gambling facilities in
25    any other jurisdiction has been revoked.
26    (f) The Board may approve electronic gaming positions

 

 

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1statewide as provided in this Section. The authority to operate
2electronic gaming positions under this Section shall be
3allocated as follows: up to 1,200 gaming positions for any
4electronic gaming licensee in Cook County whose electronic
5gaming license originates with an organization licensee that
6conducted live racing in calendar year 2016; up to 900 gaming
7positions for any electronic gaming licensee outside of Cook
8County whose electronic gaming license originates with an
9organization licensee that conducted live racing in calendar
10year 2016; and up to 350 gaming positions for any electronic
11gaming licensee whose electronic gaming license originates
12with an organization licensee that did not conduct live racing
13in calendar year 2010, which shall increase to 900 gaming
14positions in the calendar year following the year in which the
15electronic gaming licensee conducts 96 live races.
16    (g) Each applicant for an electronic gaming license shall
17specify in its application for licensure the number of gaming
18positions it will operate, up to the applicable limitation set
19forth in subsection (f) of this Section. Any unreserved gaming
20positions that are not specified shall be forfeited and
21retained by the Board. For the purposes of this subsection (g),
22an electronic gaming licensee that did not conduct live racing
23in 2010 may reserve up to 900 positions and shall not be
24penalized under this Section for not operating those positions
25until it meets the requirements of subsection (f) of this
26Section, but such licensee shall not request unreserved gaming

 

 

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1positions under this subsection (g) until its 900 positions are
2all operational.
3    Thereafter, the Board shall publish the number of
4unreserved electronic gaming positions and shall accept
5requests for additional positions from any electronic gaming
6licensee that initially reserved all of the positions that were
7offered. The Board shall allocate expeditiously the unreserved
8electronic gaming positions to requesting electronic gaming
9licensees in a manner that maximizes revenue to the State. The
10Board may allocate any such unused electronic gaming positions
11pursuant to an open and competitive bidding process, as
12provided under Section 7.5 of this Act. This process shall
13continue until all unreserved gaming positions have been
14purchased. All positions obtained pursuant to this process and
15all positions the electronic gaming licensee specified it would
16operate in its application must be in operation within 18
17months after they were obtained or the electronic gaming
18licensee forfeits the right to operate those positions, but is
19not entitled to a refund of any fees paid. The Board may, after
20holding a public hearing, grant extensions so long as the
21electronic gaming licensee is working in good faith to make the
22positions operational. The extension may be for a period of 6
23months. If, after the period of the extension, the electronic
24gaming licensee has not made the positions operational, then
25another public hearing must be held by the Board before it may
26grant another extension.

 

 

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1    Unreserved gaming positions retained from and allocated to
2electronic gaming licensees by the Board pursuant to this
3subsection (g) shall not be allocated to owners licensees
4pursuant to subsection (h-10) of Section 7 of this Act.
5    For the purpose of this subsection (g), the unreserved
6gaming positions for each electronic gaming licensee shall be
7the applicable limitation set forth in subsection (f) of this
8Section, less the number of reserved gaming positions by such
9electronic gaming licensee, and the total unreserved gaming
10positions shall be the aggregate of the unreserved gaming
11positions for all electronic gaming licensees.
12    (h) Subject to the approval of the Illinois Gaming Board,
13an electronic gaming licensee may make modification or
14additions to any existing buildings and structures to comply
15with the requirements of this Act. The Illinois Gaming Board
16shall make its decision after consulting with the Illinois
17Racing Board. In no case, however, shall the Illinois Gaming
18Board approve any modification or addition that alters the
19grounds of the organizational licensee such that the act of
20live racing is an ancillary activity to electronic gaming.
21Electronic gaming may take place in existing structures where
22inter-track wagering is conducted at the race track or a
23facility within 300 yards of the race track in accordance with
24the provisions of this Act and the Illinois Horse Racing Act of
251975.
26    (i) An electronic gaming licensee may conduct electronic

 

 

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1gaming at a temporary facility pending the construction of a
2permanent facility or the remodeling or relocation of an
3existing facility to accommodate electronic gaming
4participants for up to 24 months after the temporary facility
5begins to conduct electronic gaming. Upon request by an
6electronic gaming licensee and upon a showing of good cause by
7the electronic gaming licensee, the Board shall extend the
8period during which the licensee may conduct electronic gaming
9at a temporary facility by up to 12 months. The Board shall
10make rules concerning the conduct of electronic gaming from
11temporary facilities.
12    Electronic gaming may take place in existing structures
13where inter-track wagering is conducted at the race track or a
14facility within 300 yards of the race track in accordance with
15the provisions of this Act and the Illinois Horse Racing Act of
161975.
17    (j) The Illinois Gaming Board must adopt emergency rules in
18accordance with Section 5-45 of the Illinois Administrative
19Procedure Act as necessary to ensure compliance with the
20provisions of this amendatory Act of the 100th General Assembly
21concerning electronic gaming. The adoption of emergency rules
22authorized by this subsection (j) shall be deemed to be
23necessary for the public interest, safety, and welfare.
24    (k) Each electronic gaming licensee who obtains electronic
25gaming positions must make a reconciliation payment 3 years
26after the date the electronic gaming licensee begins operating

 

 

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1the positions in an amount equal to 75% of the difference
2between its adjusted gross receipts from electronic gaming and
3amounts paid to its purse accounts pursuant to item (1) of
4subsection (b) of Section 56 of the Illinois Horse Racing Act
5of 1975 for the 12-month period for which such difference was
6the largest, minus an amount equal to the initial per position
7fee paid by the electronic gaming licensee. If this calculation
8results in a negative amount, then the electronic gaming
9licensee is not entitled to any reimbursement of fees
10previously paid. This reconciliation payment may be made in
11installments over a period of no more than 2 years, subject to
12Board approval. Any installment payments shall include an
13annual market interest rate as determined by the Board.
14    All payments by licensees under this subsection (i) shall
15be deposited into the Gaming Facilities Fee Revenue Fund.
16    (l) As soon as practical after a request is made by the
17Illinois Gaming Board, to minimize duplicate submissions by the
18applicant, the Illinois Racing Board must provide information
19on an applicant for an electronic gaming license to the
20Illinois Gaming Board.
 
21    (230 ILCS 10/7.8 new)
22    Sec. 7.8. Home rule. The regulation and licensing of
23electronic gaming and electronic gaming licensees are
24exclusive powers and functions of the State. A home rule unit
25may not regulate or license electronic gaming or electronic

 

 

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1gaming licensees. This Section is a denial and limitation of
2home rule powers and functions under subsection (h) of Section
36 of Article VII of the Illinois Constitution.
 
4    (230 ILCS 10/7.9 new)
5    Sec. 7.9. Casino operator license.
6    (a) A qualified person may apply to the Board for a casino
7operator license to operate and manage any gambling operation
8conducted by the Authority. The application shall be made on
9forms provided by the Board and shall contain such information
10as the Board prescribes, including but not limited to
11information required in Sections 6(a), (b), and (c) and
12information relating to the applicant's proposed price to
13manage the Authority's gambling operations and to provide the
14casino, gambling equipment, and supplies necessary to conduct
15Authority gambling operations. The application shall also
16include a non-refundable application fee of $100,000. This
17application fee shall be deposited into the Gaming Facilities
18Fee Revenue Fund.
19    (b) A person or entity is ineligible to receive a casino
20operator license if:
21        (1) the person has been convicted of a felony under the
22    laws of this State, any other state, or the United States;
23        (2) the person has been convicted of any violation of
24    Article 28 of the Criminal Code of 2012, or substantially
25    similar laws of any other jurisdiction;

 

 

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1        (3) the person has submitted an application for a
2    license under this Act or the Chicago Casino Development
3    Authority Act which contains false information;
4        (4) the person is a member of the Board or the Chicago
5    Casino Development Board or the person is an official or
6    employee of the Chicago Casino Development Authority or the
7    City of Chicago;
8        (5) a person defined in (1), (2), (3), or (4) is an
9    officer, director, or managerial employee of the entity;
10        (6) the entity employs a person defined in (1), (2),
11    (3), or (4) who participates in the management or operation
12    of gambling operations authorized under this Act; or
13        (7) a license of the person or entity issued under this
14    Act, or a license to own or operate gambling facilities in
15    any other jurisdiction, has been revoked.
16    (c) In determining whether to grant a casino operator
17license, the Board shall consider:
18        (1) the character, reputation, experience and
19    financial integrity of the applicants and of any other or
20    separate person that either:
21            (A) controls, directly or indirectly, such
22        applicant, or
23            (B) is controlled, directly or indirectly, by such
24        applicant or by a person which controls, directly or
25        indirectly, such applicant;
26        (2) the facilities or proposed facilities for the

 

 

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1    conduct of gambling;
2        (3) the preference of the municipality in which the
3    licensee will operate;
4        (4) the extent to which the ownership of the applicant
5    reflects the diversity of the State by including minority
6    persons and females and the good faith affirmative action
7    plan of each applicant to recruit, train, and upgrade
8    minority persons and females in all employment
9    classifications;
10        (5) the financial ability of the applicant to purchase
11    and maintain adequate liability and casualty insurance;
12        (6) whether the applicant has adequate capitalization
13    to provide and maintain, for the duration of a license, a
14    casino; and
15        (7) the extent to which the applicant exceeds or meets
16    other standards for the issuance of a casino operator
17    license that the Board may adopt by rule.
18    (d) Each applicant shall submit with his or her
19application, on forms prescribed by the Board, 2 sets of his or
20her fingerprints. The Board shall charge each applicant a fee
21set by the Department of State Police to defray the costs
22associated with the search and classification of fingerprints
23obtained by the Board with respect to the applicant's
24application. This fee shall be paid into the State Police
25Services Fund.
26    (e) A person who knowingly makes a false statement on an

 

 

SB0007- 402 -LRB100 06307 AMC 16345 b

1application is guilty of a Class A misdemeanor.
2    (f) The Board shall charge each applicant a non-refundable
3fee of $50,000 to defray the costs associated with the
4background investigation conducted by the Board. This fee shall
5be exclusive of any other fee or fees charged in connection
6with an application for and, if applicable, the issuance of, a
7casino operator license. If the costs of the investigation
8exceed $50,000, the Board shall immediately notify the
9applicant of the additional amount owed, payment of which must
10be submitted to the Board within 7 days after such
11notification. All information, records, interviews, reports,
12statements, memoranda, or other data supplied to or used by the
13Board in the course of its review or investigation of an
14application for a license or a renewal under this Act shall be
15privileged and strictly confidential and shall be used only for
16the purpose of evaluating an applicant for a license or a
17renewal. Such information, records, interviews, reports,
18statements, memoranda, or other data shall not be admissible as
19evidence, nor discoverable in any action of any kind in any
20court or before any tribunal, board, agency, or person, except
21for any action deemed necessary by the Board.
22    (g) The casino operator license shall be issued only upon
23proof that the applicant has entered into a labor peace
24agreement with each labor organization that is actively engaged
25in representing and attempting to represent casino and
26hospitality industry workers in this State. The labor peace

 

 

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1agreement must be a valid and enforceable agreement under 29
2U.S.C. 185 that protects the city's and State's revenues from
3the operation of the casino facility by prohibiting the labor
4organization and its members from engaging in any picketing,
5work stoppages, boycotts, or any other economic interference
6with the casino facility for at least the first 5 years of the
7casino license and must cover all operations at the casino
8facility that are conducted by lessees or tenants or under
9management agreements.
10    (h) The casino operator license shall be for a term of 4
11years, shall be renewable by the Board, and shall contain such
12terms and provisions as the Board deems necessary to protect or
13enhance the credibility and integrity of State gambling
14operations, achieve the highest prospective total revenue to
15the State, and otherwise serve the interests of the citizens of
16Illinois. The Board may suspend, restrict, or revoke the
17license:
18        (1) for violation of any provision of this Act;
19        (2) for violation of any rules of the Board;
20        (3) for any cause which, if known to the Board, would
21    have disqualified the applicant from receiving the
22    license; or
23        (4) for any other just cause.
 
24    (230 ILCS 10/7.10 new)
25    Sec. 7.10. Diversity program.

 

 

SB0007- 404 -LRB100 06307 AMC 16345 b

1    (a) Each owners licensee, electronic gaming licensee,
2casino operator licensee, and suppliers licensee shall
3establish and maintain a diversity program to ensure
4non-discrimination in the award and administration of
5contracts. The programs shall establish goals of awarding not
6less than 20% of the annual dollar value of all contracts,
7purchase orders, or other agreements to minority-owned
8businesses and 5% of the annual dollar value of all contracts
9to female-owned businesses.
10    (b) Each owners licensee, electronic gaming licensee,
11casino operator licensee, and suppliers licensee shall
12establish and maintain a diversity program designed to promote
13equal opportunity for employment. The program shall establish
14hiring goals as the Board and each licensee determines
15appropriate. The Board shall monitor the progress of the gaming
16licensee's progress with respect to the program's goals.
17    (c) No later than May 31 of each year, each licensee shall
18report to the Board (1) the number of respective employees and
19the number of its respective employees who have designated
20themselves as members of a minority group and gender and (2)
21the total goals achieved under subsection (a) of this Section
22as a percentage of the total contracts awarded by the license.
23In addition, all licensees shall submit a report with respect
24to the minority-owned and female-owned businesses program
25created in this Section to the Board.
26    (d) When considering whether to re-issue or renew a license

 

 

SB0007- 405 -LRB100 06307 AMC 16345 b

1to an owners licensee, electronic gaming licensee, casino
2operator licensee, or suppliers licensee, the Board shall take
3into account the licensee's success in complying with the
4provisions of this Section. If an owners licensee, electronic
5gaming licensee, casino operator licensee, or suppliers
6licensee has not satisfied the goals contained in this Section,
7the Board shall require a written explanation as to why the
8licensee is not in compliance and shall require the licensee to
9file multi-year metrics designed to achieve compliance with the
10provisions by the next renewal period, consistent with State
11and federal law.
 
12    (230 ILCS 10/7.11 new)
13    Sec. 7.11. Annual report on diversity.
14    (a) Each licensee that receives a license under Sections 7,
157.1, and 7.7 shall execute and file a report with the Board no
16later than December 31 of each year that shall contain, but not
17be limited to, the following information:
18        (i) a good faith affirmative action plan to recruit,
19    train, and upgrade minority persons, females, and persons
20    with a disability in all employment classifications;
21        (ii) the total dollar amount of contracts that were
22    awarded to businesses owned by minority persons, females,
23    and persons with a disability;
24        (iii) the total number of businesses owned by minority
25    persons, females, and persons with a disability that were

 

 

SB0007- 406 -LRB100 06307 AMC 16345 b

1    utilized by the licensee;
2        (iv) the utilization of businesses owned by minority
3    persons, females, and persons with disabilities during the
4    preceding year; and
5        (v) the outreach efforts used by the licensee to
6    attract investors and businesses consisting of minority
7    persons, females, and persons with a disability.
8    (b) The Board shall forward a copy of each licensee's
9annual reports to the General Assembly no later than February 1
10of each year.
 
11    (230 ILCS 10/7.12 new)
12    Sec. 7.12. Issuance of new owners licenses.
13    (a) Except for the owners license issued to the Chicago
14Casino Development Authority, owners licenses newly authorized
15pursuant to this amendatory Act of the 100th General Assembly
16may be issued by the Board to a qualified applicant pursuant to
17an open and competitive bidding process, as set forth in
18Section 7.5, and subject to the maximum number of authorized
19licenses set forth in subsection (e-5) of Section 7 of this
20Act.
21    (b) To be a qualified applicant, a person or entity may not
22be ineligible to receive an owners license under subsection (a)
23of Section 7 of this Act and must submit an application for an
24owners license that complies with Section 6 of this Act.
25    (c) In determining whether to grant an owners license to an

 

 

SB0007- 407 -LRB100 06307 AMC 16345 b

1applicant, the Board shall consider all of the factors set
2forth in subsections (b) and (e-10) of Section 7 of this Act,
3as well as the amount of the applicant's license bid. The Board
4may grant the owners license to an applicant that has not
5submitted the highest license bid, but if it does not select
6the highest bidder, the Board shall issue a written decision
7explaining why another applicant was selected and identifying
8the factors set forth in subsections (b) and (e-10) of Section
97 of this Act that favored the winning bidder.
 
10    (230 ILCS 10/7.13 new)
11    Sec. 7.13. Environmental standards. All permanent
12casinos, riverboats, and electronic gaming facilities shall
13consist of buildings that are certified as meeting the U.S.
14Green Building Council's Leadership in Energy and
15Environmental Design standards. The provisions of this Section
16apply to a holder of an owners license, casino operator
17license, or electronic gaming license that (i) begins
18operations on or after January 1, 2017 or (ii) relocates its
19facilities on or after the effective date of this amendatory
20Act of the 100th General Assembly.
 
21    (230 ILCS 10/8)  (from Ch. 120, par. 2408)
22    Sec. 8. Suppliers licenses.
23    (a) The Board may issue a suppliers license to such
24persons, firms or corporations which apply therefor upon the

 

 

SB0007- 408 -LRB100 06307 AMC 16345 b

1payment of a non-refundable application fee set by the Board,
2upon a determination by the Board that the applicant is
3eligible for a suppliers license and upon payment of a $5,000
4annual license fee.
5    (b) The holder of a suppliers license is authorized to sell
6or lease, and to contract to sell or lease, gambling equipment
7and supplies to any licensee involved in the ownership or
8management of gambling operations.
9    (c) Gambling supplies and equipment may not be distributed
10unless supplies and equipment conform to standards adopted by
11rules of the Board.
12    (d) A person, firm or corporation is ineligible to receive
13a suppliers license if:
14        (1) the person has been convicted of a felony under the
15    laws of this State, any other state, or the United States;
16        (2) the person has been convicted of any violation of
17    Article 28 of the Criminal Code of 1961 or the Criminal
18    Code of 2012, or substantially similar laws of any other
19    jurisdiction;
20        (3) the person has submitted an application for a
21    license under this Act which contains false information;
22        (4) the person is a member of the Board;
23        (5) the entity firm or corporation is one in which a
24    person defined in (1), (2), (3) or (4), is an officer,
25    director or managerial employee;
26        (6) the firm or corporation employs a person who

 

 

SB0007- 409 -LRB100 06307 AMC 16345 b

1    participates in the management or operation of riverboat
2    gambling authorized under this Act or the Chicago Casino
3    Development Authority Act;
4        (7) the license of the person, firm or corporation
5    issued under this Act or the Chicago Casino Development
6    Authority Act, or a license to own or operate gambling
7    facilities in any other jurisdiction, has been revoked.
8    (e) Any person that supplies any equipment, devices, or
9supplies to a licensed riverboat gambling operation or casino
10or electronic gaming operation must first obtain a suppliers
11license. A supplier shall furnish to the Board a list of all
12equipment, devices and supplies offered for sale or lease in
13connection with gambling games authorized under this Act. A
14supplier shall keep books and records for the furnishing of
15equipment, devices and supplies to gambling operations
16separate and distinct from any other business that the supplier
17might operate. A supplier shall file a quarterly return with
18the Board listing all sales and leases. A supplier shall
19permanently affix its name or a distinctive logo or other mark
20or design element identifying the manufacturer or supplier to
21all its equipment, devices, and supplies, except gaming chips
22without a value impressed, engraved, or imprinted on it, for
23gambling operations. The Board may waive this requirement for
24any specific product or products if it determines that the
25requirement is not necessary to protect the integrity of the
26game. Items purchased from a licensed supplier may continue to

 

 

SB0007- 410 -LRB100 06307 AMC 16345 b

1be used even though the supplier subsequently changes its name,
2distinctive logo, or other mark or design element; undergoes a
3change in ownership; or ceases to be licensed as a supplier for
4any reason. Any supplier's equipment, devices or supplies which
5are used by any person in an unauthorized gambling operation
6shall be forfeited to the State. A holder of an owners license
7or an electronic gaming license A licensed owner may own its
8own equipment, devices and supplies. Each holder of an owners
9license or an electronic gaming license under the Act shall
10file an annual report listing its inventories of gambling
11equipment, devices and supplies.
12    (f) Any person who knowingly makes a false statement on an
13application is guilty of a Class A misdemeanor.
14    (g) Any gambling equipment, devices and supplies provided
15by any licensed supplier may either be repaired on the
16riverboat, in the casino, or at the electronic gaming facility
17or removed from the riverboat, casino, or electronic gaming
18facility to a an on-shore facility owned by the holder of an
19owners license or electronic gaming license for repair.
20(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
2198-756, eff. 7-16-14.)
 
22    (230 ILCS 10/9)  (from Ch. 120, par. 2409)
23    Sec. 9. Occupational licenses.
24    (a) The Board may issue an occupational license to an
25applicant upon the payment of a non-refundable fee set by the

 

 

SB0007- 411 -LRB100 06307 AMC 16345 b

1Board, upon a determination by the Board that the applicant is
2eligible for an occupational license and upon payment of an
3annual license fee in an amount to be established. To be
4eligible for an occupational license, an applicant must:
5        (1) be at least 21 years of age if the applicant will
6    perform any function involved in gaming by patrons. Any
7    applicant seeking an occupational license for a non-gaming
8    function shall be at least 18 years of age;
9        (2) not have been convicted of a felony offense, a
10    violation of Article 28 of the Criminal Code of 1961 or the
11    Criminal Code of 2012, or a similar statute of any other
12    jurisdiction;
13        (2.5) not have been convicted of a crime, other than a
14    crime described in item (2) of this subsection (a),
15    involving dishonesty or moral turpitude, except that the
16    Board may, in its discretion, issue an occupational license
17    to a person who has been convicted of a crime described in
18    this item (2.5) more than 10 years prior to his or her
19    application and has not subsequently been convicted of any
20    other crime;
21        (3) have demonstrated a level of skill or knowledge
22    which the Board determines to be necessary in order to
23    operate gambling aboard a riverboat, in a casino, or at an
24    electronic gaming facility; and
25        (4) have met standards for the holding of an
26    occupational license as adopted by rules of the Board. Such

 

 

SB0007- 412 -LRB100 06307 AMC 16345 b

1    rules shall provide that any person or entity seeking an
2    occupational license to manage gambling operations under
3    this Act or the Chicago Casino Development Authority Act
4    hereunder shall be subject to background inquiries and
5    further requirements similar to those required of
6    applicants for an owners license. Furthermore, such rules
7    shall provide that each such entity shall be permitted to
8    manage gambling operations for only one licensed owner.
9    (b) Each application for an occupational license shall be
10on forms prescribed by the Board and shall contain all
11information required by the Board. The applicant shall set
12forth in the application: whether he has been issued prior
13gambling related licenses; whether he has been licensed in any
14other state under any other name, and, if so, such name and his
15age; and whether or not a permit or license issued to him in
16any other state has been suspended, restricted or revoked, and,
17if so, for what period of time.
18    (c) Each applicant shall submit with his application, on
19forms provided by the Board, 2 sets of his fingerprints. The
20Board shall charge each applicant a fee set by the Department
21of State Police to defray the costs associated with the search
22and classification of fingerprints obtained by the Board with
23respect to the applicant's application. These fees shall be
24paid into the State Police Services Fund.
25    (d) The Board may in its discretion refuse an occupational
26license to any person: (1) who is unqualified to perform the

 

 

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1duties required of such applicant; (2) who fails to disclose or
2states falsely any information called for in the application;
3(3) who has been found guilty of a violation of this Act or the
4Chicago Casino Development Authority Act or whose prior
5gambling related license or application therefor has been
6suspended, restricted, revoked or denied for just cause in any
7other state; or (4) for any other just cause.
8    (e) The Board may suspend, revoke or restrict any
9occupational licensee: (1) for violation of any provision of
10this Act; (2) for violation of any of the rules and regulations
11of the Board; (3) for any cause which, if known to the Board,
12would have disqualified the applicant from receiving such
13license; or (4) for default in the payment of any obligation or
14debt due to the State of Illinois; or (5) for any other just
15cause.
16    (f) A person who knowingly makes a false statement on an
17application is guilty of a Class A misdemeanor.
18    (g) Any license issued pursuant to this Section shall be
19valid for a period of one year from the date of issuance.
20    (h) Nothing in this Act shall be interpreted to prohibit a
21licensed owner or electronic gaming licensee from entering into
22an agreement with a public community college or a school
23approved under the Private Business and Vocational Schools Act
24of 2012 for the training of any occupational licensee. Any
25training offered by such a school shall be in accordance with a
26written agreement between the licensed owner or electronic

 

 

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1gaming licensee and the school.
2    (i) Any training provided for occupational licensees may be
3conducted either at the site of the gambling facility on the
4riverboat or at a school with which a licensed owner or
5electronic gaming licensee has entered into an agreement
6pursuant to subsection (h).
7(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
897-1150, eff. 1-25-13.)
 
9    (230 ILCS 10/11)  (from Ch. 120, par. 2411)
10    Sec. 11. Conduct of gambling. Gambling may be conducted by
11licensed owners or licensed managers on behalf of the State
12aboard riverboats. Gambling may be conducted by electronic
13gaming licensees at electronic gaming facilities. Gambling may
14be conducted by a casino operator licensee at a casino.
15Gambling authorized under this Section is , subject to the
16following standards:
17        (1) A licensee may conduct riverboat gambling
18    authorized under this Act regardless of whether it conducts
19    excursion cruises. A licensee may permit the continuous
20    ingress and egress of patrons passengers on a riverboat not
21    used for excursion cruises for the purpose of gambling.
22    Excursion cruises shall not exceed 4 hours for a round
23    trip. However, the Board may grant express approval for an
24    extended cruise on a case-by-case basis.
25        (2) (Blank).

 

 

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1        (3) Minimum and maximum wagers on games shall be set by
2    the licensee.
3        (4) Agents of the Board and the Department of State
4    Police may board and inspect any riverboat, enter and
5    inspect any portion of a casino, or enter and inspect any
6    portion of an electronic gaming facility at any time for
7    the purpose of determining whether this Act or the Chicago
8    Casino Development Authority Act is being complied with.
9    Every riverboat, if under way and being hailed by a law
10    enforcement officer or agent of the Board, must stop
11    immediately and lay to.
12        (5) Employees of the Board shall have the right to be
13    present on the riverboat or in the casino or on adjacent
14    facilities under the control of the licensee and at the
15    electronic gaming facility under the control of the
16    electronic gaming licensee.
17        (6) Gambling equipment and supplies customarily used
18    in conducting riverboat or casino gambling or electronic
19    gaming must be purchased or leased only from suppliers
20    licensed for such purpose under this Act. The Board may
21    approve the transfer, sale, or lease of gambling equipment
22    and supplies by a licensed owner from or to an affiliate of
23    the licensed owner as long as the gambling equipment and
24    supplies were initially acquired from a supplier licensed
25    in Illinois.
26        (7) Persons licensed under this Act or the Chicago

 

 

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1    Casino Development Authority Act shall permit no form of
2    wagering on gambling games except as permitted by this Act.
3        (8) Wagers may be received only from a person present
4    on a licensed riverboat, in a casino, or at an electronic
5    gaming facility. No person present on a licensed riverboat,
6    in a casino, or at an electronic gaming facility shall
7    place or attempt to place a wager on behalf of another
8    person who is not present on the riverboat, in a casino, or
9    at the electronic gaming facility.
10        (9) Wagering, including electronic gaming, shall not
11    be conducted with money or other negotiable currency.
12        (10) A person under age 21 shall not be permitted on an
13    area of a riverboat or casino where gambling is being
14    conducted or at an electronic gaming facility where
15    gambling is being conducted, except for a person at least
16    18 years of age who is an employee of the riverboat or
17    casino gambling operation or electronic gaming operation.
18    No employee under age 21 shall perform any function
19    involved in gambling by the patrons. No person under age 21
20    shall be permitted to make a wager under this Act or the
21    Chicago Casino Development Authority Act, and any winnings
22    that are a result of a wager by a person under age 21,
23    whether or not paid by a licensee, shall be treated as
24    winnings for the privilege tax purposes, confiscated, and
25    forfeited to the State and deposited into the Education
26    Assistance Fund.

 

 

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1        (11) Gambling excursion cruises are permitted only
2    when the waterway for which the riverboat is licensed is
3    navigable, as determined by the Board in consultation with
4    the U.S. Army Corps of Engineers. This paragraph (11) does
5    not limit the ability of a licensee to conduct gambling
6    authorized under this Act when gambling excursion cruises
7    are not permitted.
8        (12) All tokens, chips or electronic cards used to make
9    wagers must be purchased (i) from a licensed owner or
10    manager, in the case of a riverboat, either aboard a
11    riverboat or at an onshore facility which has been approved
12    by the Board and which is located where the riverboat
13    docks, (ii) in the case of a casino, from a licensed owner
14    or licensed casino operator at the casino, or (iii) from an
15    electronic gaming licensee at the electronic gaming
16    facility. The tokens, chips or electronic cards may be
17    purchased by means of an agreement under which the owner,
18    or manager, or licensed casino operator extends credit to
19    the patron. Such tokens, chips or electronic cards may be
20    used while aboard the riverboat, in the casino, or at the
21    electronic gaming facility only for the purpose of making
22    wagers on gambling games.
23        (13) Notwithstanding any other Section of this Act or
24    the Chicago Casino Development Authority Act, in addition
25    to the other licenses authorized under this Act or the
26    Chicago Casino Development Authority Act, the Board may

 

 

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1    issue special event licenses allowing persons who are not
2    otherwise licensed to conduct riverboat gambling to
3    conduct such gambling on a specified date or series of
4    dates. Riverboat gambling under such a license may take
5    place on a riverboat not normally used for riverboat
6    gambling. The Board shall establish standards, fees and
7    fines for, and limitations upon, such licenses, which may
8    differ from the standards, fees, fines and limitations
9    otherwise applicable under this Act or the Chicago Casino
10    Development Authority Act. All such fees shall be deposited
11    into the State Gaming Fund. All such fines shall be
12    deposited into the Education Assistance Fund, created by
13    Public Act 86-0018, of the State of Illinois.
14        (14) In addition to the above, gambling must be
15    conducted in accordance with all rules adopted by the
16    Board.
17(Source: P.A. 96-1392, eff. 1-1-11.)
 
18    (230 ILCS 10/11.1)  (from Ch. 120, par. 2411.1)
19    Sec. 11.1. Collection of amounts owing under credit
20agreements. Notwithstanding any applicable statutory provision
21to the contrary, a licensed owner, licensed or manager,
22licensed casino operator, or electronic gaming licensee who
23extends credit to a riverboat gambling patron or an electronic
24gaming patron pursuant to Section 11 (a) (12) of this Act is
25expressly authorized to institute a cause of action to collect

 

 

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1any amounts due and owing under the extension of credit, as
2well as the licensed owner's, licensed or manager's, licensed
3casino operator's, or electronic gaming licensee's costs,
4expenses and reasonable attorney's fees incurred in
5collection.
6(Source: P.A. 93-28, eff. 6-20-03.)
 
7    (230 ILCS 10/12)  (from Ch. 120, par. 2412)
8    Sec. 12. Admission tax; fees.
9    (a) A tax is hereby imposed upon admissions to riverboat
10and casino gambling facilities riverboats operated by licensed
11owners authorized pursuant to this Act and the Chicago Casino
12Development Authority Act. Until July 1, 2002, the rate is $2
13per person admitted. From July 1, 2002 until July 1, 2003, the
14rate is $3 per person admitted. From July 1, 2003 until August
1523, 2005 (the effective date of Public Act 94-673), for a
16licensee that admitted 1,000,000 persons or fewer in the
17previous calendar year, the rate is $3 per person admitted; for
18a licensee that admitted more than 1,000,000 but no more than
192,300,000 persons in the previous calendar year, the rate is $4
20per person admitted; and for a licensee that admitted more than
212,300,000 persons in the previous calendar year, the rate is $5
22per person admitted. Beginning on August 23, 2005 (the
23effective date of Public Act 94-673), for a licensee that
24admitted 1,000,000 persons or fewer in calendar year 2004, the
25rate is $2 per person admitted, and for all other licensees,

 

 

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1including licensees that were not conducting gambling
2operations in 2004, the rate is $3 per person admitted. This
3admission tax is imposed upon the licensed owner conducting
4gambling.
5        (1) The admission tax shall be paid for each admission,
6    except that a person who exits a riverboat gambling
7    facility and reenters that riverboat gambling facility
8    within the same gaming day shall be subject only to the
9    initial admission tax.
10        (2) (Blank).
11        (3) The riverboat licensee may issue tax-free passes to
12    actual and necessary officials and employees of the
13    licensee or other persons actually working on the
14    riverboat.
15        (4) The number and issuance of tax-free passes is
16    subject to the rules of the Board, and a list of all
17    persons to whom the tax-free passes are issued shall be
18    filed with the Board.
19    (a-5) A fee is hereby imposed upon admissions operated by
20licensed managers on behalf of the State pursuant to Section
217.3 at the rates provided in this subsection (a-5). For a
22licensee that admitted 1,000,000 persons or fewer in the
23previous calendar year, the rate is $3 per person admitted; for
24a licensee that admitted more than 1,000,000 but no more than
252,300,000 persons in the previous calendar year, the rate is $4
26per person admitted; and for a licensee that admitted more than

 

 

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12,300,000 persons in the previous calendar year, the rate is $5
2per person admitted.
3        (1) The admission fee shall be paid for each admission.
4        (2) (Blank).
5        (3) The licensed manager may issue fee-free passes to
6    actual and necessary officials and employees of the manager
7    or other persons actually working on the riverboat.
8        (4) The number and issuance of fee-free passes is
9    subject to the rules of the Board, and a list of all
10    persons to whom the fee-free passes are issued shall be
11    filed with the Board.
12    (b) Except as provided in subsection (b-5), from From the
13tax imposed under subsection (a) and the fee imposed under
14subsection (a-5), a municipality shall receive from the State
15$1 for each person embarking on a riverboat docked within the
16municipality or entering a casino located within the
17municipality, and a county shall receive $1 for each person
18entering a casino or embarking on a riverboat docked within the
19county but outside the boundaries of any municipality. The
20municipality's or county's share shall be collected by the
21Board on behalf of the State and remitted quarterly by the
22State, subject to appropriation, to the treasurer of the unit
23of local government for deposit in the general fund.
24    (b-5) From the tax imposed under subsection (a) and the fee
25imposed under subsection (a-5), $1 for each person embarking on
26a riverboat designated in paragraph (4) of subsection (e-5) of

 

 

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1Section 7 shall be divided as follows: $0.70 to the City of
2Rockford, $0.05 to the City of Loves Park, $0.05 to the Village
3of Machesney Park, and $0.20 to Winnebago County.
4    The municipality's or county's share shall be collected by
5the Board on behalf of the State and remitted monthly by the
6State, subject to appropriation, to the treasurer of the unit
7of local government for deposit in the general fund.
8    (c) The licensed owner shall pay the entire admission tax
9to the Board and the licensed manager or the casino operator
10licensee shall pay the entire admission fee to the Board. Such
11payments shall be made daily. Accompanying each payment shall
12be a return on forms provided by the Board which shall include
13other information regarding admissions as the Board may
14require. Failure to submit either the payment or the return
15within the specified time may result in suspension or
16revocation of the owners or managers license.
17    (c-5) A tax is imposed on admissions to electronic gaming
18facilities at the rate of $3 per person admitted by an
19electronic gaming licensee. The tax is imposed upon the
20electronic gaming licensee.
21        (1) The admission tax shall be paid for each admission,
22    except that a person who exits an electronic gaming
23    facility and reenters that electronic gaming facility
24    within the same gaming day, as the term "gaming day" is
25    defined by the Board by rule, shall be subject only to the
26    initial admission tax. The Board shall establish, by rule,

 

 

SB0007- 423 -LRB100 06307 AMC 16345 b

1    a procedure to determine whether a person admitted to an
2    electronic gaming facility has paid the admission tax.
3        (2) An electronic gaming licensee may issue tax-free
4    passes to actual and necessary officials and employees of
5    the licensee and other persons associated with electronic
6    gaming operations.
7        (3) The number and issuance of tax-free passes is
8    subject to the rules of the Board, and a list of all
9    persons to whom the tax-free passes are issued shall be
10    filed with the Board.
11        (4) The electronic gaming licensee shall pay the entire
12    admission tax to the Board.
13    Such payments shall be made daily. Accompanying each
14payment shall be a return on forms provided by the Board, which
15shall include other information regarding admission as the
16Board may require. Failure to submit either the payment or the
17return within the specified time may result in suspension or
18revocation of the electronic gaming license.
19    From the tax imposed under this subsection (c-5), a
20municipality other than the Village of Stickney or the City of
21Collinsville in which an electronic gaming facility is located,
22or if the electronic gaming facility is not located within a
23municipality, then the county in which the electronic gaming
24facility is located, except as otherwise provided in this
25Section, shall receive, subject to appropriation, $1 for each
26person who enters the electronic gaming facility. For each

 

 

SB0007- 424 -LRB100 06307 AMC 16345 b

1admission to the electronic gaming facility in excess of
21,500,000 in a year, from the tax imposed under this subsection
3(c-5), the county in which the electronic gaming facility is
4located shall receive, subject to appropriation, $0.30, which
5shall be in addition to any other moneys paid to the county
6under this Section.
7    From the tax imposed under this subsection (c-5) on an
8electronic gaming facility located in the Village of Stickney,
9$1 for each person who enters the electronic gaming facility
10shall be distributed as follows, subject to appropriation:
11$0.24 to the Village of Stickney, $0.49 to the Town of Cicero,
12$0.05 to the City of Berwyn, and $0.17 to the Stickney Public
13Health District, and $0.05 to the City of Bridgeview.
14    From the tax imposed under this subsection (c-5) on an
15electronic gaming facility located in the City of Collinsville,
16$1 for each person who enters the electronic gaming facility
17shall be distributed as follows, subject to appropriation:
18$0.45 to the City of Alton, $0.45 to the City of East St.
19Louis, and $0.10 to the City of Collinsville.
20    After payments required under this subsection (c-5) have
21been made, all remaining amounts shall be deposited into the
22Education Assistance Fund.
23    (d) The Board shall administer and collect the admission
24tax imposed by this Section, to the extent practicable, in a
25manner consistent with the provisions of Sections 4, 5, 5a, 5b,
265c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the

 

 

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1Retailers' Occupation Tax Act and Section 3-7 of the Uniform
2Penalty and Interest Act.
3(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
 
4    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
5    Sec. 13. Wagering tax; rate; distribution.
6    (a) Until January 1, 1998, a tax is imposed on the adjusted
7gross receipts received from gambling games authorized under
8this Act at the rate of 20%.
9    (a-1) From January 1, 1998 until July 1, 2002, a privilege
10tax is imposed on persons engaged in the business of conducting
11riverboat gambling operations, based on the adjusted gross
12receipts received by a licensed owner from gambling games
13authorized under this Act at the following rates:
14        15% of annual adjusted gross receipts up to and
15    including $25,000,000;
16        20% of annual adjusted gross receipts in excess of
17    $25,000,000 but not exceeding $50,000,000;
18        25% of annual adjusted gross receipts in excess of
19    $50,000,000 but not exceeding $75,000,000;
20        30% of annual adjusted gross receipts in excess of
21    $75,000,000 but not exceeding $100,000,000;
22        35% of annual adjusted gross receipts in excess of
23    $100,000,000.
24    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
25is imposed on persons engaged in the business of conducting

 

 

SB0007- 426 -LRB100 06307 AMC 16345 b

1riverboat gambling operations, other than licensed managers
2conducting riverboat gambling operations on behalf of the
3State, based on the adjusted gross receipts received by a
4licensed owner from gambling games authorized under this Act at
5the following rates:
6        15% of annual adjusted gross receipts up to and
7    including $25,000,000;
8        22.5% of annual adjusted gross receipts in excess of
9    $25,000,000 but not exceeding $50,000,000;
10        27.5% of annual adjusted gross receipts in excess of
11    $50,000,000 but not exceeding $75,000,000;
12        32.5% of annual adjusted gross receipts in excess of
13    $75,000,000 but not exceeding $100,000,000;
14        37.5% of annual adjusted gross receipts in excess of
15    $100,000,000 but not exceeding $150,000,000;
16        45% of annual adjusted gross receipts in excess of
17    $150,000,000 but not exceeding $200,000,000;
18        50% of annual adjusted gross receipts in excess of
19    $200,000,000.
20    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
21persons engaged in the business of conducting riverboat
22gambling operations, other than licensed managers conducting
23riverboat gambling operations on behalf of the State, based on
24the adjusted gross receipts received by a licensed owner from
25gambling games authorized under this Act at the following
26rates:

 

 

SB0007- 427 -LRB100 06307 AMC 16345 b

1        15% of annual adjusted gross receipts up to and
2    including $25,000,000;
3        27.5% of annual adjusted gross receipts in excess of
4    $25,000,000 but not exceeding $37,500,000;
5        32.5% of annual adjusted gross receipts in excess of
6    $37,500,000 but not exceeding $50,000,000;
7        37.5% of annual adjusted gross receipts in excess of
8    $50,000,000 but not exceeding $75,000,000;
9        45% of annual adjusted gross receipts in excess of
10    $75,000,000 but not exceeding $100,000,000;
11        50% of annual adjusted gross receipts in excess of
12    $100,000,000 but not exceeding $250,000,000;
13        70% of annual adjusted gross receipts in excess of
14    $250,000,000.
15    An amount equal to the amount of wagering taxes collected
16under this subsection (a-3) that are in addition to the amount
17of wagering taxes that would have been collected if the
18wagering tax rates under subsection (a-2) were in effect shall
19be paid into the Common School Fund.
20    The privilege tax imposed under this subsection (a-3) shall
21no longer be imposed beginning on the earlier of (i) July 1,
222005; (ii) the first date after June 20, 2003 that riverboat
23gambling operations are conducted pursuant to a dormant
24license; or (iii) the first day that riverboat gambling
25operations are conducted under the authority of an owners
26license that is in addition to the 10 owners licenses initially

 

 

SB0007- 428 -LRB100 06307 AMC 16345 b

1authorized under this Act. For the purposes of this subsection
2(a-3), the term "dormant license" means an owners license that
3is authorized by this Act under which no riverboat gambling
4operations are being conducted on June 20, 2003.
5    (a-4) Beginning on the first day on which the tax imposed
6under subsection (a-3) is no longer imposed and ending upon the
7imposition of the privilege tax under subsection (a-5) of this
8Section, a privilege tax is imposed on persons engaged in the
9business of conducting riverboat or casino gambling or
10electronic gaming operations, other than licensed managers
11conducting riverboat gambling operations on behalf of the
12State, based on the adjusted gross receipts received by a
13licensed owner from gambling games authorized under this Act at
14the following rates:
15        15% of annual adjusted gross receipts up to and
16    including $25,000,000;
17        22.5% of annual adjusted gross receipts in excess of
18    $25,000,000 but not exceeding $50,000,000;
19        27.5% of annual adjusted gross receipts in excess of
20    $50,000,000 but not exceeding $75,000,000;
21        32.5% of annual adjusted gross receipts in excess of
22    $75,000,000 but not exceeding $100,000,000;
23        37.5% of annual adjusted gross receipts in excess of
24    $100,000,000 but not exceeding $150,000,000;
25        45% of annual adjusted gross receipts in excess of
26    $150,000,000 but not exceeding $200,000,000;

 

 

SB0007- 429 -LRB100 06307 AMC 16345 b

1        50% of annual adjusted gross receipts in excess of
2    $200,000,000.
3    For the imposition of the privilege tax in this subsection
4(a-4), amounts paid pursuant to item (1) of subsection (b) of
5Section 56 of the Illinois Horse Racing Act of 1975 shall not
6be included in the determination of adjusted gross receipts.
7    (a-5) Beginning in the fiscal year following the opening of
8the casino at which gambling operations are conducted pursuant
9to the Chicago Casino Development Authority Act, but not before
10July 1, 2019, a privilege tax is imposed on persons engaged in
11the business of conducting riverboat or casino gambling or
12electronic gaming operations, other than licensed managers
13conducting riverboat gambling operations on behalf of the
14State, based on the adjusted gross receipts received by such
15licensee from the gambling games authorized under this Act and
16the Chicago Casino Development Authority Act. The privilege tax
17for all gambling games other than table games, including, but
18not limited to, slot machines, video game of chance gambling,
19and electronic gambling games shall be at the following rates:
20        10% of annual adjusted gross receipts up to and
21    including $25,000,000;
22        17.5% of annual adjusted gross receipts in excess of
23    $25,000,000 but not exceeding $50,000,000;
24        22.5% of annual adjusted gross receipts in excess of
25    $50,000,000 but not exceeding $75,000,000;
26        27.5% of annual adjusted gross receipts in excess of

 

 

SB0007- 430 -LRB100 06307 AMC 16345 b

1    $75,000,000 but not exceeding $100,000,000;
2        32.5% of annual adjusted gross receipts in excess of
3    $100,000,000 but not exceeding $150,000,000;
4        35% of annual adjusted gross receipts in excess of
5    $150,000,000 but not exceeding $200,000,000;
6        40% of annual adjusted gross receipts in excess of
7    $200,000,000 but not exceeding $300,000,000;
8        30% of annual adjusted gross receipts in excess of
9    $300,000,000 but not exceeding $350,000,000;
10        20% of annual adjusted gross receipts in excess of
11    $350,000,000, but not exceeding $800,000,000;
12        50% of annual adjusted gross receipts in excess of
13    $800,000,000.
14    The privilege tax for table games shall be at the following
15rates:
16        10% of annual adjusted gross receipts up to and
17    including $25,000,000;
18        17.5% of annual adjusted gross receipts in excess of
19    $25,000,000 but not exceeding $50,000,000;
20        22.5% of annual adjusted gross receipts in excess of
21    $50,000,000 but not exceeding $70,000,000;
22        16% of annual adjusted gross receipts in excess of
23    $70,000,000.
24    For the imposition of the privilege tax in this subsection
25(a-5), amounts paid pursuant to item (1) of subsection (b) of
26Section 56 of the Illinois Horse Racing Act of 1975 shall not

 

 

SB0007- 431 -LRB100 06307 AMC 16345 b

1be included in the determination of adjusted gross receipts.
2    (a-6) From the effective date of this amendatory Act of the
3100th General Assembly until June 30, 2021, an owners licensee
4that conducted gambling operations prior to January 1, 2011
5shall receive a dollar-for-dollar credit against the tax
6imposed under this Section for any renovation or construction
7costs paid by the owners licensee, but in no event shall the
8credit exceed $2,000,000.
9    Additionally, from the effective date of this amendatory
10Act of the 100th General Assembly until December 31, 2020, an
11owners licensee that (i) is located within 15 miles of the
12Missouri border, and (ii) has at least 3 riverboats, casinos,
13or their equivalent within a 45-mile radius, may be authorized
14to relocate to a new location with the approval of both the
15unit of local government designated as the home dock and the
16Board, so long as the new location is within the same unit of
17local government and no more than 3 miles away from its
18original location. Such owners licensee shall receive a credit
19against the tax imposed under this Section equal to 8% of the
20total project costs, as approved by the Board, for any
21renovation or construction costs paid by the owners licensee
22for the construction of the new facility, provided that the new
23facility is operational by July 1, 2020. In determining whether
24or not to approve a relocation, the Board must consider the
25extent to which the relocation will diminish the gaming
26revenues received by other Illinois gaming facilities.

 

 

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1    (a-8) Riverboat gambling operations conducted by a
2licensed manager on behalf of the State are not subject to the
3tax imposed under this Section.
4    (a-9) Beginning on January 1, 2018, the calculation of
5gross receipts or adjusted gross receipts, for the purposes of
6this Section, for a riverboat, casino, or electronic gaming
7facility shall not include the dollar amount of non-cashable
8vouchers, coupons, and electronic promotions redeemed by
9wagerers upon the riverboat, in the casino, or in the
10electronic gaming facility up to and including an amount not to
11exceed 30% of a riverboat casino or electronic gaming
12facility's adjusted gross receipts.
13    The Illinois Gaming Board shall submit to the General
14Assembly a comprehensive report no later than March 31, 2021
15detailing, at a minimum, the effect of removing non-cashable
16vouchers, coupons, and electronic promotions from this
17calculation on net gaming revenues to the State in calendar
18years 2018 through 2020, the increase or reduction in wagerers
19as a result of removing non-cashable vouchers, coupons, and
20electronic promotions from this calculation, the effect of the
21tax rates in subsection (a-5) on net gaming revenues to the
22State, and proposed modifications to the calculation.
23    (a-10) The taxes imposed by this Section shall be paid by
24the licensed owner or the electronic gaming licensee to the
25Board not later than 5:00 o'clock p.m. of the day after the day
26when the wagers were made.

 

 

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1    (a-15) If the privilege tax imposed under subsection (a-3)
2is no longer imposed pursuant to item (i) of the last paragraph
3of subsection (a-3), then by June 15 of each year, each owners
4licensee, other than an owners licensee that admitted 1,000,000
5persons or fewer in calendar year 2004, must, in addition to
6the payment of all amounts otherwise due under this Section,
7pay to the Board a reconciliation payment in the amount, if
8any, by which the licensed owner's base amount exceeds the
9amount of net privilege tax paid by the licensed owner to the
10Board in the then current State fiscal year. A licensed owner's
11net privilege tax obligation due for the balance of the State
12fiscal year shall be reduced up to the total of the amount paid
13by the licensed owner in its June 15 reconciliation payment.
14The obligation imposed by this subsection (a-15) is binding on
15any person, firm, corporation, or other entity that acquires an
16ownership interest in any such owners license. The obligation
17imposed under this subsection (a-15) terminates on the earliest
18of: (i) July 1, 2007, (ii) the first day after the effective
19date of this amendatory Act of the 94th General Assembly that
20riverboat gambling operations are conducted pursuant to a
21dormant license, (iii) the first day that riverboat gambling
22operations are conducted under the authority of an owners
23license that is in addition to the 10 owners licenses initially
24authorized under this Act, or (iv) the first day that a
25licensee under the Illinois Horse Racing Act of 1975 conducts
26gaming operations with slot machines or other electronic gaming

 

 

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1devices. The Board must reduce the obligation imposed under
2this subsection (a-15) by an amount the Board deems reasonable
3for any of the following reasons: (A) an act or acts of God,
4(B) an act of bioterrorism or terrorism or a bioterrorism or
5terrorism threat that was investigated by a law enforcement
6agency, or (C) a condition beyond the control of the owners
7licensee that does not result from any act or omission by the
8owners licensee or any of its agents and that poses a hazardous
9threat to the health and safety of patrons. If an owners
10licensee pays an amount in excess of its liability under this
11Section, the Board shall apply the overpayment to future
12payments required under this Section.
13    For purposes of this subsection (a-15):
14    "Act of God" means an incident caused by the operation of
15an extraordinary force that cannot be foreseen, that cannot be
16avoided by the exercise of due care, and for which no person
17can be held liable.
18    "Base amount" means the following:
19        For a riverboat in Alton, $31,000,000.
20        For a riverboat in East Peoria, $43,000,000.
21        For the Empress riverboat in Joliet, $86,000,000.
22        For a riverboat in Metropolis, $45,000,000.
23        For the Harrah's riverboat in Joliet, $114,000,000.
24        For a riverboat in Aurora, $86,000,000.
25        For a riverboat in East St. Louis, $48,500,000.
26        For a riverboat in Elgin, $198,000,000.

 

 

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1    "Dormant license" has the meaning ascribed to it in
2subsection (a-3).
3    "Net privilege tax" means all privilege taxes paid by a
4licensed owner to the Board under this Section, less all
5payments made from the State Gaming Fund pursuant to subsection
6(b) of this Section.
7    The changes made to this subsection (a-15) by Public Act
894-839 are intended to restate and clarify the intent of Public
9Act 94-673 with respect to the amount of the payments required
10to be made under this subsection by an owners licensee to the
11Board.
12    (b) Until January 1, 1998, 25% of the tax revenue deposited
13in the State Gaming Fund under this Section shall be paid,
14subject to appropriation by the General Assembly, to the unit
15of local government which is designated as the home dock of the
16riverboat. Beginning January 1, 1998, from the tax revenue from
17riverboat or casino gambling deposited in the State Gaming Fund
18under this Section, an amount equal to 5% of adjusted gross
19receipts generated by a riverboat or a casino other than a
20riverboat designated in paragraph (3) or (4) of subsection
21(e-5) of Section 7, shall be paid monthly, subject to
22appropriation by the General Assembly, to the unit of local
23government in which the casino is located or that is designated
24as the home dock of the riverboat. From the tax revenue
25deposited in the State Gaming Fund pursuant to riverboat or
26casino gambling operations conducted by a licensed manager on

 

 

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1behalf of the State, an amount equal to 5% of adjusted gross
2receipts generated pursuant to those riverboat or casino
3gambling operations shall be paid monthly, subject to
4appropriation by the General Assembly, to the unit of local
5government that is designated as the home dock of the riverboat
6upon which those riverboat gambling operations are conducted or
7in which the casino is located. From the tax revenue from
8riverboat or casino gambling deposited in the State Gaming Fund
9under this Section, an amount equal to 5% of the adjusted gross
10receipts generated by a riverboat designated in paragraph (3)
11of subsection (e-5) of Section 7 shall be divided and remitted
12monthly, subject to appropriation, as follows: 50% to Waukegan,
1325% to Park City, and 25% to North Chicago. From the tax
14revenue from riverboat or casino gambling deposited in the
15State Gaming Fund under this Section, an amount equal to 5% of
16the adjusted gross receipts generated by a riverboat designated
17in paragraph (4) of subsection (e-5) of Section 7 shall be
18remitted monthly, subject to appropriation, as follows: 70% to
19the City of Rockford, 5% to the City of Loves Park, 5% to the
20Village of Machesney, and 20% to Winnebago County. Units of
21local government may refund any portion of the payment that
22they receive pursuant to this subsection (b) to the riverboat
23or casino.
24    (b-5) Beginning on the effective date of this amendatory
25Act of the 100th General Assembly, from the tax revenue
26deposited in the State Gaming Fund under this Section, an

 

 

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1amount equal to 3% of adjusted gross receipts generated by each
2electronic gaming facility located outside Madison County
3shall be paid monthly, subject to appropriation by the General
4Assembly, to a municipality other than the Village of Stickney
5in which each electronic gaming facility is located or, if the
6electronic gaming facility is not located within a
7municipality, to the county in which the electronic gaming
8facility is located, except as otherwise provided in this
9Section. From the tax revenue deposited in the State Gaming
10Fund under this Section, an amount equal to 3% of adjusted
11gross receipts generated by an electronic gaming facility
12located in the Village of Stickney shall be paid monthly,
13subject to appropriation by the General Assembly, as follows:
1425% to the Village of Stickney, 5% to the City of Berwyn, 50%
15to the Town of Cicero, and 20% to the Stickney Public Health
16District.
17    From the tax revenue deposited in the State Gaming Fund
18under this Section, an amount equal to 5% of adjusted gross
19receipts generated by an electronic gaming facility located in
20the City of Collinsville shall be paid monthly, subject to
21appropriation by the General Assembly, as follows: 45% to the
22City of Alton, 45% to the City of East St. Louis, and 10% to the
23City of Collinsville.
24    Municipalities and counties may refund any portion of the
25payment that they receive pursuant to this subsection (b-5) to
26the electronic gaming facility.

 

 

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1    (b-6) Beginning on the effective date of this amendatory
2Act of the 100th General Assembly, from the tax revenue
3deposited in the State Gaming Fund under this Section, an
4amount equal to 2% of adjusted gross receipts generated by an
5electronic gaming facility located outside Madison County
6shall be paid monthly, subject to appropriation by the General
7Assembly, to the county in which the electronic gaming facility
8is located for the purposes of its criminal justice system or
9health care system.
10    Counties may refund any portion of the payment that they
11receive pursuant to this subsection (b-6) to the electronic
12gaming facility.
13    (c) Appropriations, as approved by the General Assembly,
14may be made from the State Gaming Fund to the Board (i) for the
15administration and enforcement of this Act, the Chicago Casino
16Development Authority Act, and the Video Gaming Act, (ii) for
17distribution to the Department of State Police and to the
18Department of Revenue for the enforcement of this Act, the
19Chicago Casino Development Authority Act, and the Video Gaming
20Act, and (iii) to the Department of Human Services for the
21administration of programs to treat problem gambling. The
22Board's annual appropriations request must separately state
23its funding needs for the regulation of electronic gaming,
24riverboat gaming, casino gaming within the City of Chicago, and
25video gaming. From the tax revenue deposited in the Gaming
26Facilities Fee Revenue Fund, the first $50,000,000 shall be

 

 

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1paid to the Board, subject to appropriation, for the
2administration and enforcement of the provisions of this
3amendatory Act of the 100th General Assembly.
4    (c-3) Appropriations, as approved by the General Assembly,
5may be made from the tax revenue deposited into the State
6Gaming Fund from electronic gaming pursuant to this Section for
7the administration and enforcement of this Act.
8    (c-4) After payments required under subsections (b),
9(b-5), (b-6), (c), and (c-3) have been made from the tax
10revenue from electronic gaming deposited into the State Gaming
11Fund under this Section, all remaining amounts from electronic
12gaming shall be deposited into the Education Assistance Fund.
13    (c-5) Before May 26, 2006 (the effective date of Public Act
1494-804) and beginning on the effective date of this amendatory
15Act of the 95th General Assembly, unless any organization
16licensee under the Illinois Horse Racing Act of 1975 begins to
17operate a slot machine or video game of chance under the
18Illinois Horse Racing Act of 1975 or this Act, after the
19payments required under subsections (b) and (c) have been made,
20an amount equal to 15% of the adjusted gross receipts of (1) an
21owners licensee that relocates pursuant to Section 11.2, (2) an
22owners licensee conducting riverboat gambling operations
23pursuant to an owners license that is initially issued after
24June 25, 1999, or (3) the first riverboat gambling operations
25conducted by a licensed manager on behalf of the State under
26Section 7.3, whichever comes first, shall be paid from the

 

 

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1State Gaming Fund into the Horse Racing Equity Fund.
2    (c-10) Each year the General Assembly shall appropriate
3from the General Revenue Fund to the Education Assistance Fund
4an amount equal to the amount paid into the Horse Racing Equity
5Fund pursuant to subsection (c-5) in the prior calendar year.
6    (c-15) After the payments required under subsections (b),
7(c), and (c-5) have been made, an amount equal to 2% of the
8adjusted gross receipts of (1) an owners licensee that
9relocates pursuant to Section 11.2, (2) an owners licensee
10conducting riverboat gambling operations pursuant to an owners
11license that is initially issued after June 25, 1999, or (3)
12the first riverboat gambling operations conducted by a licensed
13manager on behalf of the State under Section 7.3, whichever
14comes first, shall be paid, subject to appropriation from the
15General Assembly, from the State Gaming Fund to each home rule
16county with a population of over 3,000,000 inhabitants for the
17purpose of enhancing the county's criminal justice system.
18    (c-20) Each year the General Assembly shall appropriate
19from the General Revenue Fund to the Education Assistance Fund
20an amount equal to the amount paid to each home rule county
21with a population of over 3,000,000 inhabitants pursuant to
22subsection (c-15) in the prior calendar year.
23    (c-25) On July 1, 2013 and each July 1 thereafter,
24$1,600,000 shall be transferred from the State Gaming Fund to
25the Chicago State University Education Improvement Fund.
26    (c-30) On July 1, 2013 or as soon as possible thereafter,

 

 

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1$92,000,000 shall be transferred from the State Gaming Fund to
2the School Infrastructure Fund and $23,000,000 shall be
3transferred from the State Gaming Fund to the Horse Racing
4Equity Fund.
5    (c-35) Beginning on July 1, 2013, in addition to any amount
6transferred under subsection (c-30) of this Section,
7$5,530,000 shall be transferred monthly from the State Gaming
8Fund to the School Infrastructure Fund.
9    (d) From time to time, the Board shall transfer the
10remainder of the funds generated by this Act into the Education
11Assistance Fund, created by Public Act 86-0018, of the State of
12Illinois.
13    (e) Nothing in this Act shall prohibit the unit of local
14government designated as the home dock of the riverboat from
15entering into agreements with other units of local government
16in this State or in other states to share its portion of the
17tax revenue.
18    (f) To the extent practicable, the Board shall administer
19and collect the wagering taxes imposed by this Section in a
20manner consistent with the provisions of Sections 4, 5, 5a, 5b,
215c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
22Retailers' Occupation Tax Act and Section 3-7 of the Uniform
23Penalty and Interest Act.
24(Source: P.A. 98-18, eff. 6-7-13.)
 
25    (230 ILCS 10/14)  (from Ch. 120, par. 2414)

 

 

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1    Sec. 14. Licensees - Records - Reports - Supervision.
2    (a) Licensed owners and electronic gaming licensees A
3licensed owner shall keep his books and records so as to
4clearly show the following:
5    (1) The amount received daily from admission fees.
6    (2) The total amount of gross receipts.
7    (3) The total amount of the adjusted gross receipts.
8    (b) Licensed owners and electronic gaming licensees The
9licensed owner shall furnish to the Board reports and
10information as the Board may require with respect to its
11activities on forms designed and supplied for such purpose by
12the Board.
13    (c) The books and records kept by a licensed owner as
14provided by this Section are public records and the
15examination, publication, and dissemination of the books and
16records are governed by the provisions of The Freedom of
17Information Act.
18(Source: P.A. 86-1029.)
 
19    (230 ILCS 10/15)  (from Ch. 120, par. 2415)
20    Sec. 15. Audit of Licensee Operations. Annually, the
21licensed owner, or manager, or electronic gaming licensee shall
22transmit to the Board an audit of the financial transactions
23and condition of the licensee's or manager's total operations.
24Additionally, within 90 days after the end of each quarter of
25each fiscal year, the licensed owner, or manager, or electronic

 

 

SB0007- 443 -LRB100 06307 AMC 16345 b

1gaming licensee shall transmit to the Board a compliance report
2on engagement procedures determined by the Board. All audits
3and compliance engagements shall be conducted by certified
4public accountants selected by the Board. Each certified public
5accountant must be registered in the State of Illinois under
6the Illinois Public Accounting Act. The compensation for each
7certified public accountant shall be paid directly by the
8licensed owner, or manager, or electronic gaming licensee to
9the certified public accountant.
10(Source: P.A. 96-1392, eff. 1-1-11.)
 
11    (230 ILCS 10/16)  (from Ch. 120, par. 2416)
12    Sec. 16. Annual Report of Board. The Board shall make an
13annual report to the Governor, for the period ending December
1431 of each year. Included in the report shall be an account of
15the Board actions, its financial position and results of
16operation under this Act and the Chicago Casino Development
17Authority Act, the practical results attained under this Act
18and the Chicago Casino Development Authority Act and any
19recommendations for legislation which the Board deems
20advisable.
21(Source: P.A. 86-1029.)
 
22    (230 ILCS 10/17)  (from Ch. 120, par. 2417)
23    Sec. 17. Administrative Procedures. The Illinois
24Administrative Procedure Act shall apply to all administrative

 

 

SB0007- 444 -LRB100 06307 AMC 16345 b

1rules and procedures of the Board under this Act, the Chicago
2Casino Development Authority Act, and or the Video Gaming Act,
3except that: (1) subsection (b) of Section 5-10 of the Illinois
4Administrative Procedure Act does not apply to final orders,
5decisions and opinions of the Board; (2) subsection (a) of
6Section 5-10 of the Illinois Administrative Procedure Act does
7not apply to forms established by the Board for use under this
8Act, the Chicago Casino Development Authority Act, and or the
9Video Gaming Act; (3) the provisions of Section 10-45 of the
10Illinois Administrative Procedure Act regarding proposals for
11decision are excluded under this Act, the Chicago Casino
12Development Authority Act, and or the Video Gaming Act; and (4)
13the provisions of subsection (d) of Section 10-65 of the
14Illinois Administrative Procedure Act do not apply so as to
15prevent summary suspension of any license pending revocation or
16other action, which suspension shall remain in effect unless
17modified by the Board or unless the Board's decision is
18reversed on the merits upon judicial review.
19(Source: P.A. 96-34, eff. 7-13-09.)
 
20    (230 ILCS 10/17.1)  (from Ch. 120, par. 2417.1)
21    Sec. 17.1. Judicial Review.
22    (a) Jurisdiction and venue for the judicial review of a
23final order of the Board relating to licensed owners,
24suppliers, electronic gaming licensees, and or special event
25licenses is vested in the Appellate Court of the judicial

 

 

SB0007- 445 -LRB100 06307 AMC 16345 b

1district in which Sangamon County is located. A petition for
2judicial review of a final order of the Board must be filed in
3the Appellate Court, within 35 days from the date that a copy
4of the decision sought to be reviewed was served upon the party
5affected by the decision.
6    (b) Judicial review of all other final orders of the Board
7shall be conducted in accordance with the Administrative Review
8Law.
9(Source: P.A. 88-1.)
 
10    (230 ILCS 10/18)  (from Ch. 120, par. 2418)
11    Sec. 18. Prohibited Activities - Penalty.
12    (a) A person is guilty of a Class A misdemeanor for doing
13any of the following:
14        (1) Conducting gambling where wagering is used or to be
15    used without a license issued by the Board.
16        (2) Conducting gambling where wagering is permitted
17    other than in the manner specified by Section 11.
18    (b) A person is guilty of a Class B misdemeanor for doing
19any of the following:
20        (1) permitting a person under 21 years to make a wager;
21    or
22        (2) violating paragraph (12) of subsection (a) of
23    Section 11 of this Act.
24    (c) A person wagering or accepting a wager at any location
25outside the riverboat, casino, or electronic gaming facility in

 

 

SB0007- 446 -LRB100 06307 AMC 16345 b

1violation of paragraph is subject to the penalties in
2paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
3Criminal Code of 2012 is subject to the penalties provided in
4that Section.
5    (d) A person commits a Class 4 felony and, in addition,
6shall be barred for life from gambling operations riverboats
7under the jurisdiction of the Board, if the person does any of
8the following:
9        (1) Offers, promises, or gives anything of value or
10    benefit to a person who is connected with a riverboat or
11    casino owner or electronic gaming licensee, including, but
12    not limited to, an officer or employee of a licensed owner,
13    electronic gaming licensee, or holder of an occupational
14    license pursuant to an agreement or arrangement or with the
15    intent that the promise or thing of value or benefit will
16    influence the actions of the person to whom the offer,
17    promise, or gift was made in order to affect or attempt to
18    affect the outcome of a gambling game, or to influence
19    official action of a member of the Board.
20        (2) Solicits or knowingly accepts or receives a promise
21    of anything of value or benefit while the person is
22    connected with a riverboat, casino, or electronic gaming
23    facility, including, but not limited to, an officer or
24    employee of a licensed owner or electronic gaming licensee,
25    or the holder of an occupational license, pursuant to an
26    understanding or arrangement or with the intent that the

 

 

SB0007- 447 -LRB100 06307 AMC 16345 b

1    promise or thing of value or benefit will influence the
2    actions of the person to affect or attempt to affect the
3    outcome of a gambling game, or to influence official action
4    of a member of the Board.
5        (3) Uses or possesses with the intent to use a device
6    to assist:
7            (i) In projecting the outcome of the game.
8            (ii) In keeping track of the cards played.
9            (iii) In analyzing the probability of the
10        occurrence of an event relating to the gambling game.
11            (iv) In analyzing the strategy for playing or
12        betting to be used in the game except as permitted by
13        the Board.
14        (4) Cheats at a gambling game.
15        (5) Manufactures, sells, or distributes any cards,
16    chips, dice, game or device which is intended to be used to
17    violate any provision of this Act or the Chicago Casino
18    Development Authority Act.
19        (6) Alters or misrepresents the outcome of a gambling
20    game on which wagers have been made after the outcome is
21    made sure but before it is revealed to the players.
22        (7) Places a bet after acquiring knowledge, not
23    available to all players, of the outcome of the gambling
24    game which is subject of the bet or to aid a person in
25    acquiring the knowledge for the purpose of placing a bet
26    contingent on that outcome.

 

 

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1        (8) Claims, collects, or takes, or attempts to claim,
2    collect, or take, money or anything of value in or from the
3    gambling games, with intent to defraud, without having made
4    a wager contingent on winning a gambling game, or claims,
5    collects, or takes an amount of money or thing of value of
6    greater value than the amount won.
7        (9) Uses counterfeit chips or tokens in a gambling
8    game.
9        (10) Possesses any key or device designed for the
10    purpose of opening, entering, or affecting the operation of
11    a gambling game, drop box, or an electronic or mechanical
12    device connected with the gambling game or for removing
13    coins, tokens, chips or other contents of a gambling game.
14    This paragraph (10) does not apply to a gambling licensee
15    or employee of a gambling licensee acting in furtherance of
16    the employee's employment.
17    (e) The possession of more than one of the devices
18described in subsection (d), paragraphs (3), (5), or (10)
19permits a rebuttable presumption that the possessor intended to
20use the devices for cheating.
21    (f) A person under the age of 21 who, except as authorized
22under paragraph (10) of Section 11, enters upon a riverboat or
23in a casino or electronic gaming facility commits a petty
24offense and is subject to a fine of not less than $100 or more
25than $250 for a first offense and of not less than $200 or more
26than $500 for a second or subsequent offense.

 

 

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1    An action to prosecute any crime occurring on a riverboat
2shall be tried in the county of the dock at which the riverboat
3is based. An action to prosecute any crime occurring in a
4casino or electronic gaming facility shall be tried in the
5county in which the casino or electronic gaming facility is
6located.
7(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 
8    (230 ILCS 10/18.1)
9    Sec. 18.1. Distribution of certain fines. If a fine is
10imposed on an owner licensee or an electronic gaming licensee
11for knowingly sending marketing or promotional materials to any
12person placed on the self-exclusion list, then the Board shall
13distribute an amount equal to 15% of the fine imposed to the
14unit of local government in which the casino, riverboat, or
15electronic gaming facility is located for the purpose of
16awarding grants to non-profit entities that assist gambling
17addicts.
18(Source: P.A. 96-224, eff. 8-11-09.)
 
19    (230 ILCS 10/19)  (from Ch. 120, par. 2419)
20    Sec. 19. Forfeiture of property.
21    (a) Except as provided in subsection (b), any riverboat,
22casino, or electronic gaming facility used for the conduct of
23gambling games in violation of this Act shall be considered a
24gambling place in violation of Section 28-3 of the Criminal

 

 

SB0007- 450 -LRB100 06307 AMC 16345 b

1Code of 2012. Every gambling device found on a riverboat, in a
2casino, or at an electronic gaming facility operating gambling
3games in violation of this Act and every slot machine and video
4game of chance found at an electronic gaming facility operating
5gambling games in violation of this Act or the Chicago Casino
6Development Authority Act shall be subject to seizure,
7confiscation and destruction as provided in Section 28-5 of the
8Criminal Code of 2012.
9    (b) It is not a violation of this Act for a riverboat or
10other watercraft which is licensed for gaming by a contiguous
11state to dock on the shores of this State if the municipality
12having jurisdiction of the shores, or the county in the case of
13unincorporated areas, has granted permission for docking and no
14gaming is conducted on the riverboat or other watercraft while
15it is docked on the shores of this State. No gambling device
16shall be subject to seizure, confiscation or destruction if the
17gambling device is located on a riverboat or other watercraft
18which is licensed for gaming by a contiguous state and which is
19docked on the shores of this State if the municipality having
20jurisdiction of the shores, or the county in the case of
21unincorporated areas, has granted permission for docking and no
22gaming is conducted on the riverboat or other watercraft while
23it is docked on the shores of this State.
24(Source: P.A. 97-1150, eff. 1-25-13.)
 
25    (230 ILCS 10/20)  (from Ch. 120, par. 2420)

 

 

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1    Sec. 20. Prohibited activities - civil penalties. Any
2person who conducts a gambling operation without first
3obtaining a license to do so, or who continues to conduct such
4games after revocation of his license, or any licensee who
5conducts or allows to be conducted any unauthorized gambling
6games on a riverboat, in a casino, or at an electronic gaming
7facility where it is authorized to conduct its riverboat
8gambling operation, in addition to other penalties provided,
9shall be subject to a civil penalty equal to the amount of
10gross receipts derived from wagering on the gambling games,
11whether unauthorized or authorized, conducted on that day as
12well as confiscation and forfeiture of all gambling game
13equipment used in the conduct of unauthorized gambling games.
14(Source: P.A. 86-1029.)
 
15    (230 ILCS 10/21)  (from Ch. 120, par. 2421)
16    Sec. 21. Limitation on taxation of licensees. Licensees
17shall not be subjected to any excise tax, license tax, permit
18tax, privilege tax, occupation tax or excursion tax which is
19imposed exclusively upon the licensee by the State or any
20political subdivision thereof, except as provided in this Act
21or the Chicago Casino Development Authority Act.
22(Source: P.A. 86-1029.)
 
23    (230 ILCS 10/23)  (from Ch. 120, par. 2423)
24    Sec. 23. The State Gaming Fund. On or after the effective

 

 

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1date of this Act, except as provided for payments into the
2Horse Racing Equity Trust Fund under subsection (a) of Section
37, all of the fees and taxes collected pursuant to this Act or
4the Chicago Casino Development Authority Act shall be deposited
5into the State Gaming Fund, a special fund in the State
6Treasury, which is hereby created. The adjusted gross receipts
7of any riverboat gambling operations conducted by a licensed
8manager on behalf of the State remaining after the payment of
9the fees and expenses of the licensed manager shall be
10deposited into the State Gaming Fund. Fines and penalties
11collected pursuant to this Act or the Chicago Casino
12Development Authority Act shall be deposited into the Education
13Assistance Fund, created by Public Act 86-0018, of the State of
14Illinois.
15(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
 
16    (230 ILCS 10/24)
17    Sec. 24. Applicability of this Illinois Riverboat Gambling
18Act. The provisions of the this Illinois Riverboat Gambling
19Act, and all rules promulgated thereunder, shall apply to the
20Chicago Casino Development Authority Act and the Video Gaming
21Act, except where there is a conflict between the 2 Acts. In
22the event of a conflict between this Act and the Chicago Casino
23Development Authority Act, the terms of the Chicago Casino
24Development Authority Act shall prevail. In the event of a
25conflict between this Act and the Video Gaming Act, the terms

 

 

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1of this Act shall prevail.
2(Source: P.A. 96-37, eff. 7-13-09.)
 
3    Section 90-42. The Video Gaming Act is amended by changing
4Sections 5, 25, 45, 79, and 80 as follows:
 
5    (230 ILCS 40/5)
6    Sec. 5. Definitions. As used in this Act:
7    "Board" means the Illinois Gaming Board.
8    "Credit" means one, 5, 10, or 25 cents either won or
9purchased by a player.
10    "Distributor" means an individual, partnership,
11corporation, or limited liability company licensed under this
12Act to buy, sell, lease, or distribute video gaming terminals
13or major components or parts of video gaming terminals to or
14from terminal operators.
15    "Electronic card" means a card purchased from a licensed
16establishment, licensed fraternal establishment, licensed
17veterans establishment, or licensed truck stop establishment
18for use in that establishment as a substitute for cash in the
19conduct of gaming on a video gaming terminal.
20    "Electronic voucher" means a voucher printed by an
21electronic video game machine that is redeemable in the
22licensed establishment for which it was issued.
23    "Terminal operator" means an individual, partnership,
24corporation, or limited liability company that is licensed

 

 

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1under this Act and that owns, services, and maintains video
2gaming terminals for placement in licensed establishments,
3licensed truck stop establishments, licensed fraternal
4establishments, or licensed veterans establishments.
5    "Licensed technician" means an individual who is licensed
6under this Act to repair, service, and maintain video gaming
7terminals.
8    "Licensed terminal handler" means a person, including but
9not limited to an employee or independent contractor working
10for a manufacturer, distributor, supplier, technician, or
11terminal operator, who is licensed under this Act to possess or
12control a video gaming terminal or to have access to the inner
13workings of a video gaming terminal. A licensed terminal
14handler does not include an individual, partnership,
15corporation, or limited liability company defined as a
16manufacturer, distributor, supplier, technician, or terminal
17operator under this Act.
18    "Manufacturer" means an individual, partnership,
19corporation, or limited liability company that is licensed
20under this Act and that manufactures or assembles video gaming
21terminals.
22    "Supplier" means an individual, partnership, corporation,
23or limited liability company that is licensed under this Act to
24supply major components or parts to video gaming terminals to
25licensed terminal operators.
26    "Net terminal income" means money put into a video gaming

 

 

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1terminal minus credits paid out to players.
2    "Video gaming terminal" means any electronic video game
3machine that, upon insertion of cash, electronic cards or
4vouchers, or any combination thereof, is available to play or
5simulate the play of a video game, including but not limited to
6video poker, line up, and blackjack, as authorized by the Board
7utilizing a video display and microprocessors in which the
8player may receive free games or credits that can be redeemed
9for cash. The term does not include a machine that directly
10dispenses coins, cash, or tokens or is for amusement purposes
11only.
12    "Licensed establishment" means any licensed retail
13establishment where alcoholic liquor is drawn, poured, mixed,
14or otherwise served for consumption on the premises, whether
15the establishment operates on a nonprofit or for-profit basis.
16"Licensed establishment" includes any such establishment that
17has a contractual relationship with an inter-track wagering
18location licensee licensed under the Illinois Horse Racing Act
19of 1975, provided any contractual relationship shall not
20include any transfer or offer of revenue from the operation of
21video gaming under this Act to any licensee licensed under the
22Illinois Horse Racing Act of 1975. Provided, however, that the
23licensed establishment that has such a contractual
24relationship with an inter-track wagering location licensee
25may not, itself, be (i) an inter-track wagering location
26licensee, (ii) the corporate parent or subsidiary of any

 

 

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1licensee licensed under the Illinois Horse Racing Act of 1975,
2or (iii) the corporate subsidiary of a corporation that is also
3the corporate parent or subsidiary of any licensee licensed
4under the Illinois Horse Racing Act of 1975. "Licensed
5establishment" does not include a facility operated by an
6organization licensee, an inter-track wagering licensee, or an
7inter-track wagering location licensee licensed under the
8Illinois Horse Racing Act of 1975 or a riverboat licensed under
9the Illinois Riverboat Gambling Act, except as provided in this
10paragraph. The changes made to this definition by Public Act
1198-587 are declarative of existing law.
12    "Licensed fraternal establishment" means the location
13where a qualified fraternal organization that derives its
14charter from a national fraternal organization regularly
15meets.
16    "Licensed veterans establishment" means the location where
17a qualified veterans organization that derives its charter from
18a national veterans organization regularly meets.
19    "Licensed truck stop establishment" means a facility (i)
20that is at least a 3-acre facility with a convenience store,
21(ii) with separate diesel islands for fueling commercial motor
22vehicles, (iii) that sells at retail more than 10,000 gallons
23of diesel or biodiesel fuel per month, and (iv) with parking
24spaces for commercial motor vehicles. "Commercial motor
25vehicles" has the same meaning as defined in Section 18b-101 of
26the Illinois Vehicle Code. The requirement of item (iii) of

 

 

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1this paragraph may be met by showing that estimated future
2sales or past sales average at least 10,000 gallons per month.
3(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
498-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
57-16-14.)
 
6    (230 ILCS 40/25)
7    Sec. 25. Restriction of licensees.
8    (a) Manufacturer. A person may not be licensed as a
9manufacturer of a video gaming terminal in Illinois unless the
10person has a valid manufacturer's license issued under this
11Act. A manufacturer may only sell video gaming terminals for
12use in Illinois to persons having a valid distributor's
13license.
14    (b) Distributor. A person may not sell, distribute, or
15lease or market a video gaming terminal in Illinois unless the
16person has a valid distributor's license issued under this Act.
17A distributor may only sell video gaming terminals for use in
18Illinois to persons having a valid distributor's or terminal
19operator's license.
20    (c) Terminal operator. A person may not own, maintain, or
21place a video gaming terminal unless he has a valid terminal
22operator's license issued under this Act. A terminal operator
23may only place video gaming terminals for use in Illinois in
24licensed establishments, licensed truck stop establishments,
25licensed fraternal establishments, and licensed veterans

 

 

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1establishments. No terminal operator may give anything of
2value, including but not limited to a loan or financing
3arrangement, to a licensed establishment, licensed truck stop
4establishment, licensed fraternal establishment, or licensed
5veterans establishment as any incentive or inducement to locate
6video terminals in that establishment. Of the after-tax profits
7from a video gaming terminal, 50% shall be paid to the terminal
8operator and 50% shall be paid to the licensed establishment,
9licensed truck stop establishment, licensed fraternal
10establishment, or licensed veterans establishment,
11notwithstanding any agreement to the contrary. A video terminal
12operator that violates one or more requirements of this
13subsection is guilty of a Class 4 felony and is subject to
14termination of his or her license by the Board.
15    (d) Licensed technician. A person may not service,
16maintain, or repair a video gaming terminal in this State
17unless he or she (1) has a valid technician's license issued
18under this Act, (2) is a terminal operator, or (3) is employed
19by a terminal operator, distributor, or manufacturer.
20    (d-5) Licensed terminal handler. No person, including, but
21not limited to, an employee or independent contractor working
22for a manufacturer, distributor, supplier, technician, or
23terminal operator licensed pursuant to this Act, shall have
24possession or control of a video gaming terminal, or access to
25the inner workings of a video gaming terminal, unless that
26person possesses a valid terminal handler's license issued

 

 

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1under this Act.
2    (e) Licensed establishment. No video gaming terminal may be
3placed in any licensed establishment, licensed veterans
4establishment, licensed truck stop establishment, or licensed
5fraternal establishment unless the owner or agent of the owner
6of the licensed establishment, licensed veterans
7establishment, licensed truck stop establishment, or licensed
8fraternal establishment has entered into a written use
9agreement with the terminal operator for placement of the
10terminals. A copy of the use agreement shall be on file in the
11terminal operator's place of business and available for
12inspection by individuals authorized by the Board. A licensed
13establishment, licensed truck stop establishment, licensed
14veterans establishment, or licensed fraternal establishment
15may operate up to 5 video gaming terminals on its premises at
16any time.
17    (f) (Blank).
18    (g) Financial interest restrictions. As used in this Act,
19"substantial interest" in a partnership, a corporation, an
20organization, an association, a business, or a limited
21liability company means:
22        (A) When, with respect to a sole proprietorship, an
23    individual or his or her spouse owns, operates, manages, or
24    conducts, directly or indirectly, the organization,
25    association, or business, or any part thereof; or
26        (B) When, with respect to a partnership, the individual

 

 

SB0007- 460 -LRB100 06307 AMC 16345 b

1    or his or her spouse shares in any of the profits, or
2    potential profits, of the partnership activities; or
3        (C) When, with respect to a corporation, an individual
4    or his or her spouse is an officer or director, or the
5    individual or his or her spouse is a holder, directly or
6    beneficially, of 5% or more of any class of stock of the
7    corporation; or
8        (D) When, with respect to an organization not covered
9    in (A), (B) or (C) above, an individual or his or her
10    spouse is an officer or manages the business affairs, or
11    the individual or his or her spouse is the owner of or
12    otherwise controls 10% or more of the assets of the
13    organization; or
14        (E) When an individual or his or her spouse furnishes
15    5% or more of the capital, whether in cash, goods, or
16    services, for the operation of any business, association,
17    or organization during any calendar year; or
18        (F) When, with respect to a limited liability company,
19    an individual or his or her spouse is a member, or the
20    individual or his or her spouse is a holder, directly or
21    beneficially, of 5% or more of the membership interest of
22    the limited liability company.
23    For purposes of this subsection (g), "individual" includes
24all individuals or their spouses whose combined interest would
25qualify as a substantial interest under this subsection (g) and
26whose activities with respect to an organization, association,

 

 

SB0007- 461 -LRB100 06307 AMC 16345 b

1or business are so closely aligned or coordinated as to
2constitute the activities of a single entity.
3    (h) Location restriction. A licensed establishment,
4licensed truck stop establishment, licensed fraternal
5establishment, or licensed veterans establishment that is (i)
6located within 1,000 feet of a facility operated by an
7organization licensee licensed under the Illinois Horse Racing
8Act of 1975 or the home dock of a riverboat licensed under the
9Illinois Riverboat Gambling Act or (ii) located within 100 feet
10of a school or a place of worship under the Religious
11Corporation Act, is ineligible to operate a video gaming
12terminal. The location restrictions in this subsection (h) do
13not apply if (A) a facility operated by an organization
14licensee, a school, or a place of worship moves to or is
15established within the restricted area after a licensed
16establishment, licensed truck stop establishment, licensed
17fraternal establishment, or licensed veterans establishment
18becomes licensed under this Act or (B) a school or place of
19worship moves to or is established within the restricted area
20after a licensed establishment, licensed truck stop
21establishment, licensed fraternal establishment, or licensed
22veterans establishment obtains its original liquor license.
23For the purpose of this subsection, "school" means an
24elementary or secondary public school, or an elementary or
25secondary private school registered with or recognized by the
26State Board of Education.

 

 

SB0007- 462 -LRB100 06307 AMC 16345 b

1    Notwithstanding the provisions of this subsection (h), the
2Board may waive the requirement that a licensed establishment,
3licensed truck stop establishment, licensed fraternal
4establishment, or licensed veterans establishment not be
5located within 1,000 feet from a facility operated by an
6organization licensee licensed under the Illinois Horse Racing
7Act of 1975 or the home dock of a riverboat licensed under the
8Illinois Riverboat Gambling Act. The Board shall not grant such
9waiver if there is any common ownership or control, shared
10business activity, or contractual arrangement of any type
11between the establishment and the organization licensee or
12owners licensee of a riverboat. The Board shall adopt rules to
13implement the provisions of this paragraph.
14    (i) Undue economic concentration. In addition to
15considering all other requirements under this Act, in deciding
16whether to approve the operation of video gaming terminals by a
17terminal operator in a location, the Board shall consider the
18impact of any economic concentration of such operation of video
19gaming terminals. The Board shall not allow a terminal operator
20to operate video gaming terminals if the Board determines such
21operation will result in undue economic concentration. For
22purposes of this Section, "undue economic concentration" means
23that a terminal operator would have such actual or potential
24influence over video gaming terminals in Illinois as to:
25        (1) substantially impede or suppress competition among
26    terminal operators;

 

 

SB0007- 463 -LRB100 06307 AMC 16345 b

1        (2) adversely impact the economic stability of the
2    video gaming industry in Illinois; or
3        (3) negatively impact the purposes of the Video Gaming
4    Act.
5    The Board shall adopt rules concerning undue economic
6concentration with respect to the operation of video gaming
7terminals in Illinois. The rules shall include, but not be
8limited to, (i) limitations on the number of video gaming
9terminals operated by any terminal operator within a defined
10geographic radius and (ii) guidelines on the discontinuation of
11operation of any such video gaming terminals the Board
12determines will cause undue economic concentration.
13    (j) The provisions of the Illinois Antitrust Act are fully
14and equally applicable to the activities of any licensee under
15this Act.
16(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
17eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
18    (230 ILCS 40/45)
19    Sec. 45. Issuance of license.
20    (a) The burden is upon each applicant to demonstrate his
21suitability for licensure. Each video gaming terminal
22manufacturer, distributor, supplier, operator, handler,
23licensed establishment, licensed truck stop establishment,
24licensed fraternal establishment, and licensed veterans
25establishment shall be licensed by the Board. The Board may

 

 

SB0007- 464 -LRB100 06307 AMC 16345 b

1issue or deny a license under this Act to any person pursuant
2to the same criteria set forth in Section 9 of the Illinois
3Riverboat Gambling Act.
4    (a-5) The Board shall not grant a license to a person who
5has facilitated, enabled, or participated in the use of
6coin-operated devices for gambling purposes or who is under the
7significant influence or control of such a person. For the
8purposes of this Act, "facilitated, enabled, or participated in
9the use of coin-operated amusement devices for gambling
10purposes" means that the person has been convicted of any
11violation of Article 28 of the Criminal Code of 1961 or the
12Criminal Code of 2012. If there is pending legal action against
13a person for any such violation, then the Board shall delay the
14licensure of that person until the legal action is resolved.
15    (b) Each person seeking and possessing a license as a video
16gaming terminal manufacturer, distributor, supplier, operator,
17handler, licensed establishment, licensed truck stop
18establishment, licensed fraternal establishment, or licensed
19veterans establishment shall submit to a background
20investigation conducted by the Board with the assistance of the
21State Police or other law enforcement. To the extent that the
22corporate structure of the applicant allows, the background
23investigation shall include any or all of the following as the
24Board deems appropriate or as provided by rule for each
25category of licensure: (i) each beneficiary of a trust, (ii)
26each partner of a partnership, (iii) each member of a limited

 

 

SB0007- 465 -LRB100 06307 AMC 16345 b

1liability company, (iv) each director and officer of a publicly
2or non-publicly held corporation, (v) each stockholder of a
3non-publicly held corporation, (vi) each stockholder of 5% or
4more of a publicly held corporation, or (vii) each stockholder
5of 5% or more in a parent or subsidiary corporation.
6    (c) Each person seeking and possessing a license as a video
7gaming terminal manufacturer, distributor, supplier, operator,
8handler, licensed establishment, licensed truck stop
9establishment, licensed fraternal establishment, or licensed
10veterans establishment shall disclose the identity of every
11person, association, trust, corporation, or limited liability
12company having a greater than 1% direct or indirect pecuniary
13interest in the video gaming terminal operation for which the
14license is sought. If the disclosed entity is a trust, the
15application shall disclose the names and addresses of the
16beneficiaries; if a corporation, the names and addresses of all
17stockholders and directors; if a limited liability company, the
18names and addresses of all members; or if a partnership, the
19names and addresses of all partners, both general and limited.
20    (d) No person may be licensed as a video gaming terminal
21manufacturer, distributor, supplier, operator, handler,
22licensed establishment, licensed truck stop establishment,
23licensed fraternal establishment, or licensed veterans
24establishment if that person has been found by the Board to:
25        (1) have a background, including a criminal record,
26    reputation, habits, social or business associations, or

 

 

SB0007- 466 -LRB100 06307 AMC 16345 b

1    prior activities that pose a threat to the public interests
2    of the State or to the security and integrity of video
3    gaming;
4        (2) create or enhance the dangers of unsuitable,
5    unfair, or illegal practices, methods, and activities in
6    the conduct of video gaming; or
7        (3) present questionable business practices and
8    financial arrangements incidental to the conduct of video
9    gaming activities.
10    (e) Any applicant for any license under this Act has the
11burden of proving his or her qualifications to the satisfaction
12of the Board. The Board may adopt rules to establish additional
13qualifications and requirements to preserve the integrity and
14security of video gaming in this State.
15    (f) A non-refundable application fee shall be paid at the
16time an application for a license is filed with the Board in
17the following amounts:
18        (1) Manufacturer..........................$5,000
19        (2) Distributor...........................$5,000
20        (3) Terminal operator.....................$5,000
21        (4) Supplier..............................$2,500
22        (5) Technician..............................$100
23        (6) Terminal Handler..............................$50
24    (g) The Board shall establish an annual fee for each
25license not to exceed the following:
26        (1) Manufacturer.........................$10,000

 

 

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1        (2) Distributor..........................$10,000
2        (3) Terminal operator.....................$5,000
3        (4) Supplier..............................$2,000
4        (5) Technician..............................$100
5        (6) Licensed establishment, licensed truck stop
6    establishment, licensed fraternal establishment,
7    or licensed veterans establishment..............$100
8        (7) Video gaming terminal...................$100
9        (8) Terminal Handler..............................$50
10    (h) A terminal operator and a licensed establishment,
11licensed truck stop establishment, licensed fraternal
12establishment, or licensed veterans establishment shall
13equally split the fees specified in item (7) of subsection (g).
14(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
1598-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
16    (230 ILCS 40/79)
17    Sec. 79. Investigators. Investigators appointed by the
18Board pursuant to the powers conferred upon the Board by
19paragraph (20.6) of subsection (c) of Section 5 of the Illinois
20Riverboat Gambling Act and Section 80 of this Act shall have
21authority to conduct investigations, searches, seizures,
22arrests, and other duties imposed under this Act and the
23Illinois Riverboat Gambling Act, as deemed necessary by the
24Board. These investigators have and may exercise all of the
25rights and powers of peace officers, provided that these powers

 

 

SB0007- 468 -LRB100 06307 AMC 16345 b

1shall be (1) limited to offenses or violations occurring or
2committed in connection with conduct subject to this Act,
3including, but not limited to, the manufacture, distribution,
4supply, operation, placement, service, maintenance, or play of
5video gaming terminals and the distribution of profits and
6collection of revenues resulting from such play, and (2)
7exercised, to the fullest extent practicable, in cooperation
8with the local police department of the applicable municipality
9or, if these powers are exercised outside the boundaries of an
10incorporated municipality or within a municipality that does
11not have its own police department, in cooperation with the
12police department whose jurisdiction encompasses the
13applicable locality.
14(Source: P.A. 97-809, eff. 7-13-12.)
 
15    (230 ILCS 40/80)
16    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
17The provisions of the Illinois Riverboat Gambling Act, and all
18rules promulgated thereunder, shall apply to the Video Gaming
19Act, except where there is a conflict between the 2 Acts. In
20the event of a conflict between the 2 Acts, the provisions of
21the Illinois Gambling Act shall prevail. All provisions of the
22Uniform Penalty and Interest Act shall apply, as far as
23practicable, to the subject matter of this Act to the same
24extent as if such provisions were included herein.
25(Source: P.A. 96-37, eff. 7-13-09.)
 

 

 

SB0007- 469 -LRB100 06307 AMC 16345 b

1    Section 90-45. The Liquor Control Act of 1934 is amended by
2changing Sections 5-1 and 6-30 as follows:
 
3    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
4    Sec. 5-1. Licenses issued by the Illinois Liquor Control
5Commission shall be of the following classes:
6    (a) Manufacturer's license - Class 1. Distiller, Class 2.
7Rectifier, Class 3. Brewer, Class 4. First Class Wine
8Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
9First Class Winemaker, Class 7. Second Class Winemaker, Class
108. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1110. Class 1 Brewer, Class 11. Class 2 Brewer,
12    (b) Distributor's license,
13    (c) Importing Distributor's license,
14    (d) Retailer's license,
15    (e) Special Event Retailer's license (not-for-profit),
16    (f) Railroad license,
17    (g) Boat license,
18    (h) Non-Beverage User's license,
19    (i) Wine-maker's premises license,
20    (j) Airplane license,
21    (k) Foreign importer's license,
22    (l) Broker's license,
23    (m) Non-resident dealer's license,
24    (n) Brew Pub license,

 

 

SB0007- 470 -LRB100 06307 AMC 16345 b

1    (o) Auction liquor license,
2    (p) Caterer retailer license,
3    (q) Special use permit license,
4    (r) Winery shipper's license,
5    (s) Craft distiller tasting permit.
6    No person, firm, partnership, corporation, or other legal
7business entity that is engaged in the manufacturing of wine
8may concurrently obtain and hold a wine-maker's license and a
9wine manufacturer's license.
10    (a) A manufacturer's license shall allow the manufacture,
11importation in bulk, storage, distribution and sale of
12alcoholic liquor to persons without the State, as may be
13permitted by law and to licensees in this State as follows:
14    Class 1. A Distiller may make sales and deliveries of
15alcoholic liquor to distillers, rectifiers, importing
16distributors, distributors and non-beverage users and to no
17other licensees.
18    Class 2. A Rectifier, who is not a distiller, as defined
19herein, may make sales and deliveries of alcoholic liquor to
20rectifiers, importing distributors, distributors, retailers
21and non-beverage users and to no other licensees.
22    Class 3. A Brewer may make sales and deliveries of beer to
23importing distributors and distributors and may make sales as
24authorized under subsection (e) of Section 6-4 of this Act.
25    Class 4. A first class wine-manufacturer may make sales and
26deliveries of up to 50,000 gallons of wine to manufacturers,

 

 

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1importing distributors and distributors, and to no other
2licensees.
3    Class 5. A second class Wine manufacturer may make sales
4and deliveries of more than 50,000 gallons of wine to
5manufacturers, importing distributors and distributors and to
6no other licensees.
7    Class 6. A first-class wine-maker's license shall allow the
8manufacture of up to 50,000 gallons of wine per year, and the
9storage and sale of such wine to distributors in the State and
10to persons without the State, as may be permitted by law. A
11person who, prior to June 1, 2008 (the effective date of Public
12Act 95-634), is a holder of a first-class wine-maker's license
13and annually produces more than 25,000 gallons of its own wine
14and who distributes its wine to licensed retailers shall cease
15this practice on or before July 1, 2008 in compliance with
16Public Act 95-634.
17    Class 7. A second-class wine-maker's license shall allow
18the manufacture of between 50,000 and 150,000 gallons of wine
19per year, and the storage and sale of such wine to distributors
20in this State and to persons without the State, as may be
21permitted by law. A person who, prior to June 1, 2008 (the
22effective date of Public Act 95-634), is a holder of a
23second-class wine-maker's license and annually produces more
24than 25,000 gallons of its own wine and who distributes its
25wine to licensed retailers shall cease this practice on or
26before July 1, 2008 in compliance with Public Act 95-634.

 

 

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1    Class 8. A limited wine-manufacturer may make sales and
2deliveries not to exceed 40,000 gallons of wine per year to
3distributors, and to non-licensees in accordance with the
4provisions of this Act.
5    Class 9. A craft distiller license shall allow the
6manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
7gallons of spirits by distillation per year and the storage of
8such spirits. If a craft distiller licensee, including a craft
9distiller licensee who holds more than one craft distiller
10license, is not affiliated with any other manufacturer of
11spirits, then the craft distiller licensee may sell such
12spirits to distributors in this State and up to 2,500 gallons
13of such spirits to non-licensees to the extent permitted by any
14exemption approved by the Commission pursuant to Section 6-4 of
15this Act. A craft distiller license holder may store such
16spirits at a non-contiguous licensed location, but at no time
17shall a craft distiller license holder directly or indirectly
18produce in the aggregate more than 100,000 gallons of spirits
19per year.
20    A craft distiller licensee may hold more than one craft
21distiller's license. However, a craft distiller that holds more
22than one craft distiller license shall not manufacture, in the
23aggregate, more than 100,000 gallons of spirits by distillation
24per year and shall not sell, in the aggregate, more than 2,500
25gallons of such spirits to non-licensees in accordance with an
26exemption approved by the State Commission pursuant to Section

 

 

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16-4 of this Act.
2    Any craft distiller licensed under this Act who on July 28,
32010 (the effective date of Public Act 96-1367) was licensed as
4a distiller and manufactured no more spirits than permitted by
5this Section shall not be required to pay the initial licensing
6fee.
7    Class 10. A class 1 brewer license, which may only be
8issued to a licensed brewer or licensed non-resident dealer,
9shall allow the manufacture of up to 930,000 gallons of beer
10per year provided that the class 1 brewer licensee does not
11manufacture more than a combined 930,000 gallons of beer per
12year and is not a member of or affiliated with, directly or
13indirectly, a manufacturer that produces more than 930,000
14gallons of beer per year or any other alcoholic liquor. A class
151 brewer licensee may make sales and deliveries to importing
16distributors and distributors and to retail licensees in
17accordance with the conditions set forth in paragraph (18) of
18subsection (a) of Section 3-12 of this Act.
19    Class 11. A class 2 brewer license, which may only be
20issued to a licensed brewer or licensed non-resident dealer,
21shall allow the manufacture of up to 3,720,000 gallons of beer
22per year provided that the class 2 brewer licensee does not
23manufacture more than a combined 3,720,000 gallons of beer per
24year and is not a member of or affiliated with, directly or
25indirectly, a manufacturer that produces more than 3,720,000
26gallons of beer per year or any other alcoholic liquor. A class

 

 

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12 brewer licensee may make sales and deliveries to importing
2distributors and distributors, but shall not make sales or
3deliveries to any other licensee. If the State Commission
4provides prior approval, a class 2 brewer licensee may annually
5transfer up to 3,720,000 gallons of beer manufactured by that
6class 2 brewer licensee to the premises of a licensed class 2
7brewer wholly owned and operated by the same licensee.
8    (a-1) A manufacturer which is licensed in this State to
9make sales or deliveries of alcoholic liquor to licensed
10distributors or importing distributors and which enlists
11agents, representatives, or individuals acting on its behalf
12who contact licensed retailers on a regular and continual basis
13in this State must register those agents, representatives, or
14persons acting on its behalf with the State Commission.
15    Registration of agents, representatives, or persons acting
16on behalf of a manufacturer is fulfilled by submitting a form
17to the Commission. The form shall be developed by the
18Commission and shall include the name and address of the
19applicant, the name and address of the manufacturer he or she
20represents, the territory or areas assigned to sell to or
21discuss pricing terms of alcoholic liquor, and any other
22questions deemed appropriate and necessary. All statements in
23the forms required to be made by law or by rule shall be deemed
24material, and any person who knowingly misstates any material
25fact under oath in an application is guilty of a Class B
26misdemeanor. Fraud, misrepresentation, false statements,

 

 

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1misleading statements, evasions, or suppression of material
2facts in the securing of a registration are grounds for
3suspension or revocation of the registration. The State
4Commission shall post a list of registered agents on the
5Commission's website.
6    (b) A distributor's license shall allow the wholesale
7purchase and storage of alcoholic liquors and sale of alcoholic
8liquors to licensees in this State and to persons without the
9State, as may be permitted by law. No person licensed as a
10distributor shall be granted a non-resident dealer's license.
11    (c) An importing distributor's license may be issued to and
12held by those only who are duly licensed distributors, upon the
13filing of an application by a duly licensed distributor, with
14the Commission and the Commission shall, without the payment of
15any fee, immediately issue such importing distributor's
16license to the applicant, which shall allow the importation of
17alcoholic liquor by the licensee into this State from any point
18in the United States outside this State, and the purchase of
19alcoholic liquor in barrels, casks or other bulk containers and
20the bottling of such alcoholic liquors before resale thereof,
21but all bottles or containers so filled shall be sealed,
22labeled, stamped and otherwise made to comply with all
23provisions, rules and regulations governing manufacturers in
24the preparation and bottling of alcoholic liquors. The
25importing distributor's license shall permit such licensee to
26purchase alcoholic liquor from Illinois licensed non-resident

 

 

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1dealers and foreign importers only. No person licensed as an
2importing distributor shall be granted a non-resident dealer's
3license.
4    (d) A retailer's license shall allow the licensee to sell
5and offer for sale at retail, only in the premises specified in
6the license, alcoholic liquor for use or consumption, but not
7for resale in any form. Nothing in Public Act 95-634 shall
8deny, limit, remove, or restrict the ability of a holder of a
9retailer's license to transfer, deliver, or ship alcoholic
10liquor to the purchaser for use or consumption subject to any
11applicable local law or ordinance. Any retail license issued to
12a manufacturer shall only permit the manufacturer to sell beer
13at retail on the premises actually occupied by the
14manufacturer. For the purpose of further describing the type of
15business conducted at a retail licensed premises, a retailer's
16licensee may be designated by the State Commission as (i) an on
17premise consumption retailer, (ii) an off premise sale
18retailer, or (iii) a combined on premise consumption and off
19premise sale retailer.
20    Notwithstanding any other provision of this subsection
21(d), a retail licensee may sell alcoholic liquors to a special
22event retailer licensee for resale to the extent permitted
23under subsection (e).
24    (e) A special event retailer's license (not-for-profit)
25shall permit the licensee to purchase alcoholic liquors from an
26Illinois licensed distributor (unless the licensee purchases

 

 

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1less than $500 of alcoholic liquors for the special event, in
2which case the licensee may purchase the alcoholic liquors from
3a licensed retailer) and shall allow the licensee to sell and
4offer for sale, at retail, alcoholic liquors for use or
5consumption, but not for resale in any form and only at the
6location and on the specific dates designated for the special
7event in the license. An applicant for a special event retailer
8license must (i) furnish with the application: (A) a resale
9number issued under Section 2c of the Retailers' Occupation Tax
10Act or evidence that the applicant is registered under Section
112a of the Retailers' Occupation Tax Act, (B) a current, valid
12exemption identification number issued under Section 1g of the
13Retailers' Occupation Tax Act, and a certification to the
14Commission that the purchase of alcoholic liquors will be a
15tax-exempt purchase, or (C) a statement that the applicant is
16not registered under Section 2a of the Retailers' Occupation
17Tax Act, does not hold a resale number under Section 2c of the
18Retailers' Occupation Tax Act, and does not hold an exemption
19number under Section 1g of the Retailers' Occupation Tax Act,
20in which event the Commission shall set forth on the special
21event retailer's license a statement to that effect; (ii)
22submit with the application proof satisfactory to the State
23Commission that the applicant will provide dram shop liability
24insurance in the maximum limits; and (iii) show proof
25satisfactory to the State Commission that the applicant has
26obtained local authority approval.

 

 

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1    (f) A railroad license shall permit the licensee to import
2alcoholic liquors into this State from any point in the United
3States outside this State and to store such alcoholic liquors
4in this State; to make wholesale purchases of alcoholic liquors
5directly from manufacturers, foreign importers, distributors
6and importing distributors from within or outside this State;
7and to store such alcoholic liquors in this State; provided
8that the above powers may be exercised only in connection with
9the importation, purchase or storage of alcoholic liquors to be
10sold or dispensed on a club, buffet, lounge or dining car
11operated on an electric, gas or steam railway in this State;
12and provided further, that railroad licensees exercising the
13above powers shall be subject to all provisions of Article VIII
14of this Act as applied to importing distributors. A railroad
15license shall also permit the licensee to sell or dispense
16alcoholic liquors on any club, buffet, lounge or dining car
17operated on an electric, gas or steam railway regularly
18operated by a common carrier in this State, but shall not
19permit the sale for resale of any alcoholic liquors to any
20licensee within this State. A license shall be obtained for
21each car in which such sales are made.
22    (g) A boat license shall allow the sale of alcoholic liquor
23in individual drinks, on any passenger boat regularly operated
24as a common carrier on navigable waters in this State or on any
25riverboat operated under the Illinois Riverboat Gambling Act,
26which boat or riverboat maintains a public dining room or

 

 

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1restaurant thereon.
2    (h) A non-beverage user's license shall allow the licensee
3to purchase alcoholic liquor from a licensed manufacturer or
4importing distributor, without the imposition of any tax upon
5the business of such licensed manufacturer or importing
6distributor as to such alcoholic liquor to be used by such
7licensee solely for the non-beverage purposes set forth in
8subsection (a) of Section 8-1 of this Act, and such licenses
9shall be divided and classified and shall permit the purchase,
10possession and use of limited and stated quantities of
11alcoholic liquor as follows:
12Class 1, not to exceed ......................... 500 gallons
13Class 2, not to exceed ....................... 1,000 gallons
14Class 3, not to exceed ....................... 5,000 gallons
15Class 4, not to exceed ...................... 10,000 gallons
16Class 5, not to exceed ....................... 50,000 gallons
17    (i) A wine-maker's premises license shall allow a licensee
18that concurrently holds a first-class wine-maker's license to
19sell and offer for sale at retail in the premises specified in
20such license not more than 50,000 gallons of the first-class
21wine-maker's wine that is made at the first-class wine-maker's
22licensed premises per year for use or consumption, but not for
23resale in any form. A wine-maker's premises license shall allow
24a licensee who concurrently holds a second-class wine-maker's
25license to sell and offer for sale at retail in the premises
26specified in such license up to 100,000 gallons of the

 

 

SB0007- 480 -LRB100 06307 AMC 16345 b

1second-class wine-maker's wine that is made at the second-class
2wine-maker's licensed premises per year for use or consumption
3but not for resale in any form. A wine-maker's premises license
4shall allow a licensee that concurrently holds a first-class
5wine-maker's license or a second-class wine-maker's license to
6sell and offer for sale at retail at the premises specified in
7the wine-maker's premises license, for use or consumption but
8not for resale in any form, any beer, wine, and spirits
9purchased from a licensed distributor. Upon approval from the
10State Commission, a wine-maker's premises license shall allow
11the licensee to sell and offer for sale at (i) the wine-maker's
12licensed premises and (ii) at up to 2 additional locations for
13use and consumption and not for resale. Each location shall
14require additional licensing per location as specified in
15Section 5-3 of this Act. A wine-maker's premises licensee shall
16secure liquor liability insurance coverage in an amount at
17least equal to the maximum liability amounts set forth in
18subsection (a) of Section 6-21 of this Act.
19    (j) An airplane 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

 

 

SB0007- 481 -LRB100 06307 AMC 16345 b

1the importation, purchase or storage of alcoholic liquors to be
2sold or dispensed on an airplane; and provided further, that
3airplane licensees exercising the above powers shall be subject
4to all provisions of Article VIII of this Act as applied to
5importing distributors. An airplane licensee shall also permit
6the sale or dispensing of alcoholic liquors on any passenger
7airplane regularly operated by a common carrier in this State,
8but shall not permit the sale for resale of any alcoholic
9liquors to any licensee within this State. A single airplane
10license shall be required of an airline company if liquor
11service is provided on board aircraft in this State. The annual
12fee for such license shall be as determined in Section 5-3.
13    (k) A foreign importer's license shall permit such licensee
14to purchase alcoholic liquor from Illinois licensed
15non-resident dealers only, and to import alcoholic liquor other
16than in bulk from any point outside the United States and to
17sell such alcoholic liquor to Illinois licensed importing
18distributors and to no one else in Illinois; provided that (i)
19the foreign importer registers with the State Commission every
20brand of alcoholic liquor that it proposes to sell to Illinois
21licensees during the license period, (ii) the foreign importer
22complies with all of the provisions of Section 6-9 of this Act
23with respect to registration of such Illinois licensees as may
24be granted the right to sell such brands at wholesale, and
25(iii) the foreign importer complies with the provisions of
26Sections 6-5 and 6-6 of this Act to the same extent that these

 

 

SB0007- 482 -LRB100 06307 AMC 16345 b

1provisions apply to manufacturers.
2    (l) (i) A broker's license shall be required of all persons
3who solicit orders for, offer to sell or offer to supply
4alcoholic liquor to retailers in the State of Illinois, or who
5offer to retailers to ship or cause to be shipped or to make
6contact with distillers, rectifiers, brewers or manufacturers
7or any other party within or without the State of Illinois in
8order that alcoholic liquors be shipped to a distributor,
9importing distributor or foreign importer, whether such
10solicitation or offer is consummated within or without the
11State of Illinois.
12    No holder of a retailer's license issued by the Illinois
13Liquor Control Commission shall purchase or receive any
14alcoholic liquor, the order for which was solicited or offered
15for sale to such retailer by a broker unless the broker is the
16holder of a valid broker's license.
17    The broker shall, upon the acceptance by a retailer of the
18broker's solicitation of an order or offer to sell or supply or
19deliver or have delivered alcoholic liquors, promptly forward
20to the Illinois Liquor Control Commission a notification of
21said transaction in such form as the Commission may by
22regulations prescribe.
23    (ii) A broker's license shall be required of a person
24within this State, other than a retail licensee, who, for a fee
25or commission, promotes, solicits, or accepts orders for
26alcoholic liquor, for use or consumption and not for resale, to

 

 

SB0007- 483 -LRB100 06307 AMC 16345 b

1be shipped from this State and delivered to residents outside
2of this State by an express company, common carrier, or
3contract carrier. This Section does not apply to any person who
4promotes, solicits, or accepts orders for wine as specifically
5authorized in Section 6-29 of this Act.
6    A broker's license under this subsection (l) shall not
7entitle the holder to buy or sell any alcoholic liquors for his
8own account or to take or deliver title to such alcoholic
9liquors.
10    This subsection (l) shall not apply to distributors,
11employees of distributors, or employees of a manufacturer who
12has registered the trademark, brand or name of the alcoholic
13liquor pursuant to Section 6-9 of this Act, and who regularly
14sells such alcoholic liquor in the State of Illinois only to
15its registrants thereunder.
16    Any agent, representative, or person subject to
17registration pursuant to subsection (a-1) of this Section shall
18not be eligible to receive a broker's license.
19    (m) A non-resident dealer's license shall permit such
20licensee to ship into and warehouse alcoholic liquor into this
21State from any point outside of this State, and to sell such
22alcoholic liquor to Illinois licensed foreign importers and
23importing distributors and to no one else in this State;
24provided that (i) said non-resident dealer shall register with
25the Illinois Liquor Control Commission each and every brand of
26alcoholic liquor which it proposes to sell to Illinois

 

 

SB0007- 484 -LRB100 06307 AMC 16345 b

1licensees during the license period, (ii) it shall comply with
2all of the provisions of Section 6-9 hereof with respect to
3registration of such Illinois licensees as may be granted the
4right to sell such brands at wholesale, and (iii) the
5non-resident dealer shall comply with the provisions of
6Sections 6-5 and 6-6 of this Act to the same extent that these
7provisions apply to manufacturers. No person licensed as a
8non-resident dealer shall be granted a distributor's or
9importing distributor's license.
10    (n) A brew pub license shall allow the licensee to only (i)
11manufacture up to 155,000 gallons of beer per year only on the
12premises specified in the license, (ii) make sales of the beer
13manufactured on the premises or, with the approval of the
14Commission, beer manufactured on another brew pub licensed
15premises that is wholly owned and operated by the same licensee
16to importing distributors, distributors, and to non-licensees
17for use and consumption, (iii) store the beer upon the
18premises, (iv) sell and offer for sale at retail from the
19licensed premises for off-premises consumption no more than
20155,000 gallons per year so long as such sales are only made
21in-person, (v) sell and offer for sale at retail for use and
22consumption on the premises specified in the license any form
23of alcoholic liquor purchased from a licensed distributor or
24importing distributor, and (vi) with the prior approval of the
25Commission, annually transfer no more than 155,000 gallons of
26beer manufactured on the premises to a licensed brew pub wholly

 

 

SB0007- 485 -LRB100 06307 AMC 16345 b

1owned and operated by the same licensee.
2    A brew pub licensee shall not under any circumstance sell
3or offer for sale beer manufactured by the brew pub licensee to
4retail licensees.
5    A person who holds a class 2 brewer license may
6simultaneously hold a brew pub license if the class 2 brewer
7(i) does not, under any circumstance, sell or offer for sale
8beer manufactured by the class 2 brewer to retail licensees;
9(ii) does not hold more than 3 brew pub licenses in this State;
10(iii) does not manufacture more than a combined 3,720,000
11gallons of beer per year, including the beer manufactured at
12the brew pub; and (iv) is not a member of or affiliated with,
13directly or indirectly, a manufacturer that produces more than
143,720,000 gallons of beer per year or any other alcoholic
15liquor.
16    Notwithstanding any other provision of this Act, a licensed
17brewer, class 2 brewer, or non-resident dealer who before July
181, 2015 manufactured less than 3,720,000 gallons of beer per
19year and held a brew pub license on or before July 1, 2015 may
20(i) continue to qualify for and hold that brew pub license for
21the licensed premises and (ii) manufacture more than 3,720,000
22gallons of beer per year and continue to qualify for and hold
23that brew pub license if that brewer, class 2 brewer, or
24non-resident dealer does not simultaneously hold a class 1
25brewer license and is not a member of or affiliated with,
26directly or indirectly, a manufacturer that produces more than

 

 

SB0007- 486 -LRB100 06307 AMC 16345 b

13,720,000 gallons of beer per year or that produces any other
2alcoholic liquor.
3    (o) A caterer retailer license shall allow the holder to
4serve alcoholic liquors as an incidental part of a food service
5that serves prepared meals which excludes the serving of snacks
6as the primary meal, either on or off-site whether licensed or
7unlicensed.
8    (p) An auction liquor license shall allow the licensee to
9sell and offer for sale at auction wine and spirits for use or
10consumption, or for resale by an Illinois liquor licensee in
11accordance with provisions of this Act. An auction liquor
12license will be issued to a person and it will permit the
13auction liquor licensee to hold the auction anywhere in the
14State. An auction liquor license must be obtained for each
15auction at least 14 days in advance of the auction date.
16    (q) A special use permit license shall allow an Illinois
17licensed retailer to transfer a portion of its alcoholic liquor
18inventory from its retail licensed premises to the premises
19specified in the license hereby created, and to sell or offer
20for sale at retail, only in the premises specified in the
21license hereby created, the transferred alcoholic liquor for
22use or consumption, but not for resale in any form. A special
23use permit license may be granted for the following time
24periods: one day or less; 2 or more days to a maximum of 15 days
25per location in any 12-month 12 month period. An applicant for
26the special use permit license must also submit with the

 

 

SB0007- 487 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 488 -LRB100 06307 AMC 16345 b

1for the purpose of ensuring compliance with Public Act 95-634,
2and an acknowledgement that the wine manufacturer is in
3compliance with Section 6-2 of this Act. Any third party,
4except for a common carrier, authorized to ship wine on behalf
5of a first-class or second-class wine manufacturer's licensee,
6a first-class or second-class wine-maker's licensee, a limited
7wine manufacturer's licensee, or a person who is licensed to
8make wine under the laws of another state shall also be
9disclosed by the winery shipper's licensee, and a copy of the
10written appointment of the third-party wine provider, except
11for a common carrier, to the wine manufacturer shall be filed
12with the State Commission as a supplement to the winery
13shipper's license application or any renewal thereof. The
14winery shipper's license holder shall affirm under penalty of
15perjury, as part of the winery shipper's license application or
16renewal, that he or she only ships wine, either directly or
17indirectly through a third-party provider, from the licensee's
18own production.
19    Except for a common carrier, a third-party provider
20shipping wine on behalf of a winery shipper's license holder is
21the agent of the winery shipper's license holder and, as such,
22a winery shipper's license holder is responsible for the acts
23and omissions of the third-party provider acting on behalf of
24the license holder. A third-party provider, except for a common
25carrier, that engages in shipping wine into Illinois on behalf
26of a winery shipper's license holder shall consent to the

 

 

SB0007- 489 -LRB100 06307 AMC 16345 b

1jurisdiction of the State Commission and the State. Any
2third-party, except for a common carrier, holding such an
3appointment shall, by February 1 of each calendar year, file
4with the State Commission a statement detailing each shipment
5made to an Illinois resident. The State Commission shall adopt
6rules as soon as practicable to implement the requirements of
7Public Act 99-904 this amendatory Act of the 99th General
8Assembly and shall adopt rules prohibiting any such third-party
9appointment of a third-party provider, except for a common
10carrier, that has been deemed by the State Commission to have
11violated the provisions of this Act with regard to any winery
12shipper licensee.
13    A winery shipper licensee must pay to the Department of
14Revenue the State liquor gallonage tax under Section 8-1 for
15all wine that is sold by the licensee and shipped to a person
16in this State. For the purposes of Section 8-1, a winery
17shipper licensee shall be taxed in the same manner as a
18manufacturer of wine. A licensee who is not otherwise required
19to register under the Retailers' Occupation Tax Act must
20register under the Use Tax Act to collect and remit use tax to
21the Department of Revenue for all gallons of wine that are sold
22by the licensee and shipped to persons in this State. If a
23licensee fails to remit the tax imposed under this Act in
24accordance with the provisions of Article VIII of this Act, the
25winery shipper's license shall be revoked in accordance with
26the provisions of Article VII of this Act. If a licensee fails

 

 

SB0007- 490 -LRB100 06307 AMC 16345 b

1to properly register and remit tax under the Use Tax Act or the
2Retailers' Occupation Tax Act for all wine that is sold by the
3winery shipper and shipped to persons in this State, the winery
4shipper's license shall be revoked in accordance with the
5provisions of Article VII of this Act.
6    A winery shipper licensee must collect, maintain, and
7submit to the Commission on a semi-annual basis the total
8number of cases per resident of wine shipped to residents of
9this State. A winery shipper licensed under this subsection (r)
10must comply with the requirements of Section 6-29 of this Act.
11    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
12Section 3-12, the State Commission may receive, respond to, and
13investigate any complaint and impose any of the remedies
14specified in paragraph (1) of subsection (a) of Section 3-12.
15    (s) A craft distiller tasting permit license shall allow an
16Illinois licensed craft distiller to transfer a portion of its
17alcoholic liquor inventory from its craft distiller licensed
18premises to the premises specified in the license hereby
19created and to conduct a sampling, only in the premises
20specified in the license hereby created, of the transferred
21alcoholic liquor in accordance with subsection (c) of Section
226-31 of this Act. The transferred alcoholic liquor may not be
23sold or resold in any form. An applicant for the craft
24distiller tasting permit license must also submit with the
25application proof satisfactory to the State Commission that the
26applicant will provide dram shop liability insurance to the

 

 

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1maximum limits and have local authority approval.
2(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
398-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.
47-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
5eff. 1-1-17; revised 9-15-16.)
 
6    (235 ILCS 5/6-30)  (from Ch. 43, par. 144f)
7    Sec. 6-30. Notwithstanding any other provision of this Act,
8the Illinois Gaming Board shall have exclusive authority to
9establish the hours for sale and consumption of alcoholic
10liquor on board a riverboat during riverboat gambling
11excursions and in a casino conducted in accordance with the
12Illinois Riverboat Gambling Act.
13(Source: P.A. 87-826.)
 
14    Section 90-46. The Illinois Public Aid Code is amended by
15changing Section 10-17.15 as follows:
 
16    (305 ILCS 5/10-17.15)
17    Sec. 10-17.15. Certification of information to State
18gaming licensees.
19    (a) For purposes of this Section, "State gaming licensee"
20means, as applicable, an organization licensee or advance
21deposit wagering licensee licensed under the Illinois Horse
22Racing Act of 1975, an owners licensee licensed under the
23Illinois Riverboat Gambling Act, or a licensee that operates,

 

 

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

 

 

SB0007- 493 -LRB100 06307 AMC 16345 b

1delinquent child support payments, the State gaming licensee
2shall pay the obligor the remaining balance of the payout, less
3the administrative fee authorized by subsection (c) of this
4Section, at the time it is claimed.
5    (e) A State gaming licensee who in good faith complies with
6the requirements of this Section shall not be liable to the
7gaming winner or any other individual or entity.
8(Source: P.A. 98-318, eff. 8-12-13.)
 
9    Section 90-47. The Firearm Concealed Carry Act is amended
10by changing Section 65 as follows:
 
11    (430 ILCS 66/65)
12    Sec. 65. Prohibited areas.
13    (a) A licensee under this Act shall not knowingly carry a
14firearm on or into:
15        (1) Any building, real property, and parking area under
16    the control of a public or private elementary or secondary
17    school.
18        (2) Any building, real property, and parking area under
19    the control of a pre-school or child care facility,
20    including any room or portion of a building under the
21    control of a pre-school or child care facility. Nothing in
22    this paragraph shall prevent the operator of a child care
23    facility in a family home from owning or possessing a
24    firearm in the home or license under this Act, if no child

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    regarding student, employee, or visitor misconduct and
2    discipline, including suspension and expulsion;
3        (3) developing resolutions, regulations, or policies
4    regarding the storage or maintenance of firearms, which
5    must include designated areas where persons can park
6    vehicles that carry firearms; and
7        (4) permitting the carrying or use of firearms for the
8    purpose of instruction and curriculum of officially
9    recognized programs, including but not limited to military
10    science and law enforcement training programs, or in any
11    designated area used for hunting purposes or target
12    shooting.
13    (a-10) The owner of private real property of any type may
14prohibit the carrying of concealed firearms on the property
15under his or her control. The owner must post a sign in
16accordance with subsection (d) of this Section indicating that
17firearms are prohibited on the property, unless the property is
18a private residence.
19    (b) Notwithstanding subsections (a), (a-5), and (a-10) of
20this Section except under paragraph (22) or (23) of subsection
21(a), any licensee prohibited from carrying a concealed firearm
22into the parking area of a prohibited location specified in
23subsection (a), (a-5), or (a-10) of this Section shall be
24permitted to carry a concealed firearm on or about his or her
25person within a vehicle into the parking area and may store a
26firearm or ammunition concealed in a case within a locked

 

 

SB0007- 499 -LRB100 06307 AMC 16345 b

1vehicle or locked container out of plain view within the
2vehicle in the parking area. A licensee may carry a concealed
3firearm in the immediate area surrounding his or her vehicle
4within a prohibited parking lot area only for the limited
5purpose of storing or retrieving a firearm within the vehicle's
6trunk. For purposes of this subsection, "case" includes a glove
7compartment or console that completely encloses the concealed
8firearm or ammunition, the trunk of the vehicle, or a firearm
9carrying box, shipping box, or other container.
10    (c) A licensee shall not be in violation of this Section
11while he or she is traveling along a public right of way that
12touches or crosses any of the premises under subsection (a),
13(a-5), or (a-10) of this Section if the concealed firearm is
14carried on his or her person in accordance with the provisions
15of this Act or is being transported in a vehicle by the
16licensee in accordance with all other applicable provisions of
17law.
18    (d) Signs stating that the carrying of firearms is
19prohibited shall be clearly and conspicuously posted at the
20entrance of a building, premises, or real property specified in
21this Section as a prohibited area, unless the building or
22premises is a private residence. Signs shall be of a uniform
23design as established by the Department and shall be 4 inches
24by 6 inches in size. The Department shall adopt rules for
25standardized signs to be used under this subsection.
26(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
 

 

 

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1    Section 90-50. The Criminal Code of 2012 is amended by
2changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
3follows:
 
4    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
5    Sec. 28-1. Gambling.
6    (a) A person commits gambling when he or she:
7        (1) knowingly plays a game of chance or skill for money
8    or other thing of value, unless excepted in subsection (b)
9    of this Section;
10        (2) knowingly makes a wager upon the result of any
11    game, contest, or any political nomination, appointment or
12    election;
13        (3) knowingly operates, keeps, owns, uses, purchases,
14    exhibits, rents, sells, bargains for the sale or lease of,
15    manufactures or distributes any gambling device;
16        (4) contracts to have or give himself or herself or
17    another the option to buy or sell, or contracts to buy or
18    sell, at a future time, any grain or other commodity
19    whatsoever, or any stock or security of any company, where
20    it is at the time of making such contract intended by both
21    parties thereto that the contract to buy or sell, or the
22    option, whenever exercised, or the contract resulting
23    therefrom, shall be settled, not by the receipt or delivery
24    of such property, but by the payment only of differences in

 

 

SB0007- 501 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 502 -LRB100 06307 AMC 16345 b

1    ticket or share, or any policy ticket, slip, record,
2    document or similar device, except for such activity
3    related to lotteries, bingo games and raffles authorized by
4    and conducted in accordance with the laws of Illinois or
5    any other state or foreign government;
6        (10) knowingly advertises any lottery or policy game,
7    except for such activity related to lotteries, bingo games
8    and raffles authorized by and conducted in accordance with
9    the laws of Illinois or any other state;
10        (11) knowingly transmits information as to wagers,
11    betting odds, or changes in betting odds by telephone,
12    telegraph, radio, semaphore or similar means; or knowingly
13    installs or maintains equipment for the transmission or
14    receipt of such information; except that nothing in this
15    subdivision (11) prohibits transmission or receipt of such
16    information for use in news reporting of sporting events or
17    contests; or
18        (12) knowingly establishes, maintains, or operates an
19    Internet site that permits a person to play a game of
20    chance or skill for money or other thing of value by means
21    of the Internet or to make a wager upon the result of any
22    game, contest, political nomination, appointment, or
23    election by means of the Internet. This item (12) does not
24    apply to activities referenced in items (6) and (6.1) of
25    subsection (b) of this Section.
26    (b) Participants in any of the following activities shall

 

 

SB0007- 503 -LRB100 06307 AMC 16345 b

1not be convicted of gambling:
2        (1) Agreements to compensate for loss caused by the
3    happening of chance including without limitation contracts
4    of indemnity or guaranty and life or health or accident
5    insurance.
6        (2) Offers of prizes, award or compensation to the
7    actual contestants in any bona fide contest for the
8    determination of skill, speed, strength or endurance or to
9    the owners of animals or vehicles entered in such contest.
10        (3) Pari-mutuel betting as authorized by the law of
11    this State.
12        (4) Manufacture of gambling devices, including the
13    acquisition of essential parts therefor and the assembly
14    thereof, for transportation in interstate or foreign
15    commerce to any place outside this State when such
16    transportation is not prohibited by any applicable Federal
17    law; or the manufacture, distribution, or possession of
18    video gaming terminals, as defined in the Video Gaming Act,
19    by manufacturers, distributors, and terminal operators
20    licensed to do so under the Video Gaming Act.
21        (5) The game commonly known as "bingo", when conducted
22    in accordance with the Bingo License and Tax Act.
23        (6) Lotteries when conducted by the State of Illinois
24    in accordance with the Illinois Lottery Law. This exemption
25    includes any activity conducted by the Department of
26    Revenue to sell lottery tickets pursuant to the provisions

 

 

SB0007- 504 -LRB100 06307 AMC 16345 b

1    of the Illinois Lottery Law and its rules.
2        (6.1) The purchase of lottery tickets through the
3    Internet for a lottery conducted by the State of Illinois
4    under the program established in Section 7.12 of the
5    Illinois Lottery Law.
6        (7) Possession of an antique slot machine that is
7    neither used nor intended to be used in the operation or
8    promotion of any unlawful gambling activity or enterprise.
9    For the purpose of this subparagraph (b)(7), an antique
10    slot machine is one manufactured 25 years ago or earlier.
11        (8) Raffles and poker runs when conducted in accordance
12    with the Raffles and Poker Runs Act.
13        (9) Charitable games when conducted in accordance with
14    the Charitable Games Act.
15        (10) Pull tabs and jar games when conducted under the
16    Illinois Pull Tabs and Jar Games Act.
17        (11) Gambling games conducted on riverboats when
18    authorized by the Illinois Riverboat Gambling Act.
19        (12) Video gaming terminal games at a licensed
20    establishment, licensed truck stop establishment, licensed
21    fraternal establishment, or licensed veterans
22    establishment when conducted in accordance with the Video
23    Gaming Act.
24        (13) Games of skill or chance where money or other
25    things of value can be won but no payment or purchase is
26    required to participate.

 

 

SB0007- 505 -LRB100 06307 AMC 16345 b

1        (14) Savings promotion raffles authorized under
2    Section 5g of the Illinois Banking Act, Section 7008 of the
3    Savings Bank Act, Section 42.7 of the Illinois Credit Union
4    Act, Section 5136B of the National Bank Act (12 U.S.C.
5    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
6    1463).
7    (c) Sentence.
8    Gambling is a Class A misdemeanor. A second or subsequent
9conviction under subsections (a)(3) through (a)(12), is a Class
104 felony.
11    (d) Circumstantial evidence.
12    In prosecutions under this Section circumstantial evidence
13shall have the same validity and weight as in any criminal
14prosecution.
15(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
16    (720 ILCS 5/28-1.1)   (from Ch. 38, par. 28-1.1)
17    Sec. 28-1.1. Syndicated gambling.
18    (a) Declaration of Purpose. Recognizing the close
19relationship between professional gambling and other organized
20crime, it is declared to be the policy of the legislature to
21restrain persons from engaging in the business of gambling for
22profit in this State. This Section shall be liberally construed
23and administered with a view to carrying out this policy.
24    (b) A person commits syndicated gambling when he or she
25operates a "policy game" or engages in the business of

 

 

SB0007- 506 -LRB100 06307 AMC 16345 b

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

 

 

SB0007- 507 -LRB100 06307 AMC 16345 b

1    insurance;
2        (2) Offers of prizes, award or compensation to the
3    actual contestants in any bona fide contest for the
4    determination of skill, speed, strength or endurance or to
5    the owners of animals or vehicles entered in the contest;
6        (3) Pari-mutuel betting as authorized by law of this
7    State;
8        (4) Manufacture of gambling devices, including the
9    acquisition of essential parts therefor and the assembly
10    thereof, for transportation in interstate or foreign
11    commerce to any place outside this State when the
12    transportation is not prohibited by any applicable Federal
13    law;
14        (5) Raffles and poker runs when conducted in accordance
15    with the Raffles and Poker Runs Act;
16        (6) Gambling games conducted on riverboats, in
17    casinos, or at electronic gaming facilities when
18    authorized by the Illinois Riverboat Gambling Act;
19        (7) Video gaming terminal games at a licensed
20    establishment, licensed truck stop establishment, licensed
21    fraternal establishment, or licensed veterans
22    establishment when conducted in accordance with the Video
23    Gaming Act; and
24        (8) Savings promotion raffles authorized under Section
25    5g of the Illinois Banking Act, Section 7008 of the Savings
26    Bank Act, Section 42.7 of the Illinois Credit Union Act,

 

 

SB0007- 508 -LRB100 06307 AMC 16345 b

1    Section 5136B of the National Bank Act (12 U.S.C. 25a), or
2    Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
3    (f) Sentence. Syndicated gambling is a Class 3 felony.
4(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
5    (720 ILCS 5/28-3)   (from Ch. 38, par. 28-3)
6    Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
7any real estate, vehicle, boat or any other property whatsoever
8used for the purposes of gambling other than gambling conducted
9in the manner authorized by the Illinois Riverboat Gambling Act
10or the Video Gaming Act. Any person who knowingly permits any
11premises or property owned or occupied by him or under his
12control to be used as a gambling place commits a Class A
13misdemeanor. Each subsequent offense is a Class 4 felony. When
14any premises is determined by the circuit court to be a
15gambling place:
16    (a) Such premises is a public nuisance and may be proceeded
17against as such, and
18    (b) All licenses, permits or certificates issued by the
19State of Illinois or any subdivision or public agency thereof
20authorizing the serving of food or liquor on such premises
21shall be void; and no license, permit or certificate so
22cancelled shall be reissued for such premises for a period of
2360 days thereafter; nor shall any person convicted of keeping a
24gambling place be reissued such license for one year from his
25conviction and, after a second conviction of keeping a gambling

 

 

SB0007- 509 -LRB100 06307 AMC 16345 b

1place, any such person shall not be reissued such license, and
2    (c) Such premises of any person who knowingly permits
3thereon a violation of any Section of this Article shall be
4held liable for, and may be sold to pay any unsatisfied
5judgment that may be recovered and any unsatisfied fine that
6may be levied under any Section of this Article.
7(Source: P.A. 96-34, eff. 7-13-09.)
 
8    (720 ILCS 5/28-5)  (from Ch. 38, par. 28-5)
9    Sec. 28-5. Seizure of gambling devices and gambling funds.
10    (a) Every device designed for gambling which is incapable
11of lawful use or every device used unlawfully for gambling
12shall be considered a "gambling device", and shall be subject
13to seizure, confiscation and destruction by the Department of
14State Police or by any municipal, or other local authority,
15within whose jurisdiction the same may be found. As used in
16this Section, a "gambling device" includes any slot machine,
17and includes any machine or device constructed for the
18reception of money or other thing of value and so constructed
19as to return, or to cause someone to return, on chance to the
20player thereof money, property or a right to receive money or
21property. With the exception of any device designed for
22gambling which is incapable of lawful use, no gambling device
23shall be forfeited or destroyed unless an individual with a
24property interest in said device knows of the unlawful use of
25the device.

 

 

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

 

 

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

 

 

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1any person having any property interest in such seized gambling
2device, money or other thing of value may commence separate
3civil proceedings in the manner provided by law.
4    (e) Any gambling device displayed for sale to a riverboat
5gambling operation, casino gambling operation, or electronic
6gaming facility or used to train occupational licensees of a
7riverboat gambling operation, casino gambling operation, or
8electronic gaming facility as authorized under the Illinois
9Riverboat Gambling Act is exempt from seizure under this
10Section.
11    (f) Any gambling equipment, devices and supplies provided
12by a licensed supplier in accordance with the Illinois
13Riverboat Gambling Act which are removed from a the riverboat,
14casino, or electronic gaming facility for repair are exempt
15from seizure under this Section.
16    (g) The following video gaming terminals are exempt from
17seizure under this Section:
18        (1) Video gaming terminals for sale to a licensed
19    distributor or operator under the Video Gaming Act.
20        (2) Video gaming terminals used to train licensed
21    technicians or licensed terminal handlers.
22        (3) Video gaming terminals that are removed from a
23    licensed establishment, licensed truck stop establishment,
24    licensed fraternal establishment, or licensed veterans
25    establishment for repair.
26(Source: P.A. 98-31, eff. 6-24-13.)
 

 

 

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1    (720 ILCS 5/28-7)   (from Ch. 38, par. 28-7)
2    Sec. 28-7. Gambling contracts void.
3    (a) All promises, notes, bills, bonds, covenants,
4contracts, agreements, judgments, mortgages, or other
5securities or conveyances made, given, granted, drawn, or
6entered into, or executed by any person whatsoever, where the
7whole or any part of the consideration thereof is for any money
8or thing of value, won or obtained in violation of any Section
9of this Article are null and void.
10    (b) Any obligation void under this Section may be set aside
11and vacated by any court of competent jurisdiction, upon a
12complaint filed for that purpose, by the person so granting,
13giving, entering into, or executing the same, or by his
14executors or administrators, or by any creditor, heir, legatee,
15purchaser or other person interested therein; or if a judgment,
16the same may be set aside on motion of any person stated above,
17on due notice thereof given.
18    (c) No assignment of any obligation void under this Section
19may in any manner affect the defense of the person giving,
20granting, drawing, entering into or executing such obligation,
21or the remedies of any person interested therein.
22    (d) This Section shall not prevent a licensed owner of a
23riverboat gambling operation, casino gambling operation, or an
24electronic gaming licensee under the Illinois Gambling Act and
25the Illinois Horse Racing Act of 1975 from instituting a cause

 

 

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1of action to collect any amount due and owing under an
2extension of credit to a riverboat gambling patron as
3authorized under Section 11.1 of the Illinois Riverboat
4Gambling Act.
5(Source: P.A. 87-826.)
 
6    Section 90-55. The Eminent Domain Act is amended by adding
7Section 15-5-48 as follows:
 
8    (735 ILCS 30/15-5-48 new)
9    Sec. 15-5-48. Eminent domain powers in new Acts. The
10following provisions of law may include express grants of the
11power to acquire property by condemnation or eminent domain:
 
12    Chicago Casino Development Authority Act; City of Chicago; for
13    the purposes of the Act.
 
14    Section 90-60. The Payday Loan Reform Act is amended by
15changing Section 3-5 as follows:
 
16    (815 ILCS 122/3-5)
17    Sec. 3-5. Licensure.
18    (a) A license to make a payday loan shall state the
19address, including city and state, at which the business is to
20be conducted and shall state fully the name of the licensee.
21The license shall be conspicuously posted in the place of

 

 

SB0007- 515 -LRB100 06307 AMC 16345 b

1business of the licensee and shall not be transferable or
2assignable.
3    (b) An application for a license shall be in writing and in
4a form prescribed by the Secretary. The Secretary may not issue
5a payday loan license unless and until the following findings
6are made:
7        (1) that the financial responsibility, experience,
8    character, and general fitness of the applicant are such as
9    to command the confidence of the public and to warrant the
10    belief that the business will be operated lawfully and
11    fairly and within the provisions and purposes of this Act;
12    and
13        (2) that the applicant has submitted such other
14    information as the Secretary may deem necessary.
15    (c) A license shall be issued for no longer than one year,
16and no renewal of a license may be provided if a licensee has
17substantially violated this Act and has not cured the violation
18to the satisfaction of the Department.
19    (d) A licensee shall appoint, in writing, the Secretary as
20attorney-in-fact upon whom all lawful process against the
21licensee may be served with the same legal force and validity
22as if served on the licensee. A copy of the written
23appointment, duly certified, shall be filed in the office of
24the Secretary, and a copy thereof certified by the Secretary
25shall be sufficient evidence to subject a licensee to
26jurisdiction in a court of law. This appointment shall remain

 

 

SB0007- 516 -LRB100 06307 AMC 16345 b

1in effect while any liability remains outstanding in this State
2against the licensee. When summons is served upon the Secretary
3as attorney-in-fact for a licensee, the Secretary shall
4immediately notify the licensee by registered mail, enclosing
5the summons and specifying the hour and day of service.
6    (e) A licensee must pay an annual fee of $1,000. In
7addition to the license fee, the reasonable expense of any
8examination or hearing by the Secretary under any provisions of
9this Act shall be borne by the licensee. If a licensee fails to
10renew its license by December 31, its license shall
11automatically expire; however, the Secretary, in his or her
12discretion, may reinstate an expired license upon:
13        (1) payment of the annual fee within 30 days of the
14    date of expiration; and
15        (2) proof of good cause for failure to renew.
16    (f) Not more than one place of business shall be maintained
17under the same license, but the Secretary may issue more than
18one license to the same licensee upon compliance with all the
19provisions of this Act governing issuance of a single license.
20The location, except those locations already in existence as of
21June 1, 2005, may not be within one mile of a horse race track
22subject to the Illinois Horse Racing Act of 1975, within one
23mile of a facility at which gambling is conducted under the
24Illinois Riverboat Gambling Act, within one mile of the
25location at which a riverboat subject to the Illinois Riverboat
26Gambling Act docks, or within one mile of any State of Illinois

 

 

SB0007- 517 -LRB100 06307 AMC 16345 b

1or United States military base or naval installation.
2    (g) No licensee shall conduct the business of making loans
3under this Act within any office, suite, room, or place of
4business in which (1) any loans are offered or made under the
5Consumer Installment Loan Act other than title secured loans as
6defined in subsection (a) of Section 15 of the Consumer
7Installment Loan Act and governed by Title 38, Section 110.330
8of the Illinois Administrative Code or (2) any other business
9is solicited or engaged in unless the other business is
10licensed by the Department or, in the opinion of the Secretary,
11the other business would not be contrary to the best interests
12of consumers and is authorized by the Secretary in writing.
13    (g-5) Notwithstanding subsection (g) of this Section, a
14licensee may obtain a license under the Consumer Installment
15Loan Act (CILA) for the exclusive purpose and use of making
16title secured loans, as defined in subsection (a) of Section 15
17of CILA and governed by Title 38, Section 110.300 of the
18Illinois Administrative Code. A licensee may continue to
19service Consumer Installment Loan Act loans that were
20outstanding as of the effective date of this amendatory Act of
21the 96th General Assembly.
22    (h) The Secretary shall maintain a list of licensees that
23shall be available to interested consumers and lenders and the
24public. The Secretary shall maintain a toll-free number whereby
25consumers may obtain information about licensees. The
26Secretary shall also establish a complaint process under which

 

 

SB0007- 518 -LRB100 06307 AMC 16345 b

1an aggrieved consumer may file a complaint against a licensee
2or non-licensee who violates any provision of this Act.
3(Source: P.A. 96-936, eff. 3-21-11.)
 
4    Section 90-65. The Travel Promotion Consumer Protection
5Act is amended by changing Section 2 as follows:
 
6    (815 ILCS 420/2)  (from Ch. 121 1/2, par. 1852)
7    Sec. 2. Definitions.
8    (a) "Travel promoter" means a person, including a tour
9operator, who sells, provides, furnishes, contracts for,
10arranges or advertises that he or she will arrange wholesale or
11retail transportation by air, land, sea or navigable stream,
12either separately or in conjunction with other services.
13"Travel promoter" does not include (1) an air carrier; (2) a
14sea carrier; (3) an officially appointed agent of an air
15carrier who is a member in good standing of the Airline
16Reporting Corporation; (4) a travel promoter who has in force
17$1,000,000 or more of liability insurance coverage for
18professional errors and omissions and a surety bond or
19equivalent surety in the amount of $100,000 or more for the
20benefit of consumers in the event of a bankruptcy on the part
21of the travel promoter; or (5) a riverboat subject to
22regulation under the Illinois Riverboat Gambling Act.
23    (b) "Advertise" means to make any representation in the
24solicitation of passengers and includes communication with

 

 

SB0007- 519 -LRB100 06307 AMC 16345 b

1other members of the same partnership, corporation, joint
2venture, association, organization, group or other entity.
3    (c) "Passenger" means a person on whose behalf money or
4other consideration has been given or is to be given to
5another, including another member of the same partnership,
6corporation, joint venture, association, organization, group
7or other entity, for travel.
8    (d) "Ticket or voucher" means a writing or combination of
9writings which is itself good and sufficient to obtain
10transportation and other services for which the passenger has
11contracted.
12(Source: P.A. 91-357, eff. 7-29-99.)
 
13    (30 ILCS 105/5.490 rep.)
14    Section 90-70. The State Finance Act is amended by
15repealing Section 5.490.
 
16    (230 ILCS 5/54 rep.)
17    Section 90-75. The Illinois Horse Racing Act of 1975 is
18amended by repealing Section 54.
 
19
ARTICLE 99.

 
20    Section 99-97. Severability. The provisions of this Act are
21severable under Section 1.31 of the Statute on Statutes.
 
22    Section 99-99. Effective date. This Act takes effect upon

 

 

SB0007- 520 -LRB100 06307 AMC 16345 b

1becoming law, but this Act does not take effect at all unless
2Senate Bills 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, and 13 of the
3100th General Assembly become law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    5 ILCS 430/5-45
5    5 ILCS 430/20-10
6    20 ILCS 301/5-20
7    20 ILCS 605/605-530 new
8    20 ILCS 605/605-535 new
9    20 ILCS 1605/9.1
10    20 ILCS 2505/2505-305was 20 ILCS 2505/39b15.1
11    30 ILCS 5/3-1from Ch. 15, par. 303-1
12    30 ILCS 105/5.878 new
13    30 ILCS 105/5.879 new
14    30 ILCS 105/5.880 new
15    30 ILCS 105/6z-45
16    30 ILCS 105/6z-102 new
17    35 ILCS 5/201from Ch. 120, par. 2-201
18    35 ILCS 5/303from Ch. 120, par. 3-303
19    35 ILCS 5/304from Ch. 120, par. 3-304
20    35 ILCS 5/710from Ch. 120, par. 7-710
21    35 ILCS 200/15-144 new
22    65 ILCS 5/8-10-2.6 new
23    70 ILCS 1825/5.1from Ch. 19, par. 255.1
24    205 ILCS 670/12.5
25    230 ILCS 5/1.2

 

 

SB0007- 522 -LRB100 06307 AMC 16345 b

1    230 ILCS 5/3.11from Ch. 8, par. 37-3.11
2    230 ILCS 5/3.12from Ch. 8, par. 37-3.12
3    230 ILCS 5/3.31 new
4    230 ILCS 5/3.32 new
5    230 ILCS 5/3.33 new
6    230 ILCS 5/3.35 new
7    230 ILCS 5/3.36 new
8    230 ILCS 5/6from Ch. 8, par. 37-6
9    230 ILCS 5/9from Ch. 8, par. 37-9
10    230 ILCS 5/15from Ch. 8, par. 37-15
11    230 ILCS 5/18from Ch. 8, par. 37-18
12    230 ILCS 5/19from Ch. 8, par. 37-19
13    230 ILCS 5/20from Ch. 8, par. 37-20
14    230 ILCS 5/21from Ch. 8, par. 37-21
15    230 ILCS 5/24from Ch. 8, par. 37-24
16    230 ILCS 5/25from Ch. 8, par. 37-25
17    230 ILCS 5/26from Ch. 8, par. 37-26
18    230 ILCS 5/26.8
19    230 ILCS 5/26.9
20    230 ILCS 5/27from Ch. 8, par. 37-27
21    230 ILCS 5/30from Ch. 8, par. 37-30
22    230 ILCS 5/30.5
23    230 ILCS 5/31from Ch. 8, par. 37-31
24    230 ILCS 5/32.1
25    230 ILCS 5/34.3 new
26    230 ILCS 5/36from Ch. 8, par. 37-36

 

 

SB0007- 523 -LRB100 06307 AMC 16345 b

1    230 ILCS 5/40from Ch. 8, par. 37-40
2    230 ILCS 5/54.75
3    230 ILCS 5/56 new
4    230 ILCS 10/1from Ch. 120, par. 2401
5    230 ILCS 10/2from Ch. 120, par. 2402
6    230 ILCS 10/3from Ch. 120, par. 2403
7    230 ILCS 10/4from Ch. 120, par. 2404
8    230 ILCS 10/5from Ch. 120, par. 2405
9    230 ILCS 10/5.1from Ch. 120, par. 2405.1
10    230 ILCS 10/5.3 new
11    230 ILCS 10/6from Ch. 120, par. 2406
12    230 ILCS 10/7from Ch. 120, par. 2407
13    230 ILCS 10/7.3
14    230 ILCS 10/7.5
15    230 ILCS 10/7.7 new
16    230 ILCS 10/7.8 new
17    230 ILCS 10/7.9 new
18    230 ILCS 10/7.10 new
19    230 ILCS 10/7.11 new
20    230 ILCS 10/7.12 new
21    230 ILCS 10/7.13 new
22    230 ILCS 10/8from Ch. 120, par. 2408
23    230 ILCS 10/9from Ch. 120, par. 2409
24    230 ILCS 10/11from Ch. 120, par. 2411
25    230 ILCS 10/11.1from Ch. 120, par. 2411.1
26    230 ILCS 10/12from Ch. 120, par. 2412

 

 

SB0007- 524 -LRB100 06307 AMC 16345 b

1    230 ILCS 10/13from Ch. 120, par. 2413
2    230 ILCS 10/14from Ch. 120, par. 2414
3    230 ILCS 10/15from Ch. 120, par. 2415
4    230 ILCS 10/16from Ch. 120, par. 2416
5    230 ILCS 10/17from Ch. 120, par. 2417
6    230 ILCS 10/17.1from Ch. 120, par. 2417.1
7    230 ILCS 10/18from Ch. 120, par. 2418
8    230 ILCS 10/18.1
9    230 ILCS 10/19from Ch. 120, par. 2419
10    230 ILCS 10/20from Ch. 120, par. 2420
11    230 ILCS 10/21from Ch. 120, par. 2421
12    230 ILCS 10/23from Ch. 120, par. 2423
13    230 ILCS 10/24
14    230 ILCS 40/5
15    230 ILCS 40/25
16    230 ILCS 40/45
17    230 ILCS 40/79
18    230 ILCS 40/80
19    235 ILCS 5/5-1from Ch. 43, par. 115
20    235 ILCS 5/6-30from Ch. 43, par. 144f
21    305 ILCS 5/10-17.15
22    430 ILCS 66/65
23    720 ILCS 5/28-1from Ch. 38, par. 28-1
24    720 ILCS 5/28-1.1from Ch. 38, par. 28-1.1
25    720 ILCS 5/28-3from Ch. 38, par. 28-3
26    720 ILCS 5/28-5from Ch. 38, par. 28-5

 

 

SB0007- 525 -LRB100 06307 AMC 16345 b

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