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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
11and airport gaming locations pursuant to Section 1-67 of this
12Act at which lawful gambling is authorized and licensed as
13provided in the Illinois Gambling Act.
14    "Casino Board" means the board appointed pursuant to this
15Act to govern and control the Authority.
16    "Casino management contract" means a legally binding
17agreement between the Authority and a casino operator licensee
18to operate or manage a casino.
19    "Casino operator licensee" means any person or entity
20selected by the Authority and approved and licensed by the
21Gaming Board to manage and operate a casino within the City of
22Chicago pursuant to a casino management contract.
23    "City" means the City of Chicago.
24    "Entity" means a corporation, joint venture, partnership,
25limited liability company, trust, or unincorporated

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1a private management agreement has been terminated. The
2selection process shall at a minimum take into account the
3criteria set forth in items (1) through (4) of subsection (e)
4of this Section and may include provisions consistent with
5subsections (f), (g), (h), and (i) of this Section. The Chief
6Procurement Officer shall also implement and administer the
7adopted selection process upon the termination of a private
8management agreement. The Department, after the Chief
9Procurement Officer certifies that the procurement process has
10been followed in accordance with the rules adopted under this
11subsection (o), shall select a final offeror as the private
12manager and sign the management agreement with the private
13manager.
14    Except as provided in Sections 21.2, 21.5, 21.6, 21.7,
1521.8, and 21.9, the Department shall distribute all proceeds of
16lottery tickets and shares sold in the following priority and
17manner:
18        (1) The payment of prizes and retailer bonuses.
19        (2) The payment of costs incurred in the operation and
20    administration of the Lottery, including the payment of
21    sums due to the private manager under the management
22    agreement with the Department.
23        (3) On the last day of each month or as soon thereafter
24    as possible, the State Comptroller shall direct and the
25    State Treasurer shall transfer from the State Lottery Fund
26    to the Common School Fund an amount that is equal to the

 

 

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

 

 

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1    to the Governor and General Assembly.
2(Source: P.A. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13;
398-649, eff. 6-16-14.)
 
4    Section 90-10. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by changing Section
62505-305 as follows:
 
7    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
8    Sec. 2505-305. Investigators.
9    (a) The Department has the power to appoint investigators
10to conduct all investigations, searches, seizures, arrests,
11and other duties imposed under the provisions of any law
12administered by the Department. Except as provided in
13subsection (c), these investigators have and may exercise all
14the powers of peace officers solely for the purpose of
15enforcing taxing measures administered by the Department.
16    (b) The Director must authorize to each investigator
17employed under this Section and to any other employee of the
18Department exercising the powers of a peace officer a distinct
19badge that, on its face, (i) clearly states that the badge is
20authorized by the Department and (ii) contains a unique
21identifying number. No other badge shall be authorized by the
22Department.
23    (c) The Department may enter into agreements with the
24Illinois Gaming Board providing that investigators appointed

 

 

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1under this Section shall exercise the peace officer powers set
2forth in paragraph (20.6) of subsection (c) of Section 5 of the
3Illinois Riverboat Gambling Act.
4(Source: P.A. 96-37, eff. 7-13-09.)
 
5    Section 90-12. The Illinois State Auditing Act is amended
6by changing Section 3-1 as follows:
 
7    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
8    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
9General has jurisdiction over all State agencies to make post
10audits and investigations authorized by or under this Act or
11the Constitution.
12    The Auditor General has jurisdiction over local government
13agencies and private agencies only:
14        (a) to make such post audits authorized by or under
15    this Act as are necessary and incidental to a post audit of
16    a State agency or of a program administered by a State
17    agency involving public funds of the State, but this
18    jurisdiction does not include any authority to review local
19    governmental agencies in the obligation, receipt,
20    expenditure or use of public funds of the State that are
21    granted without limitation or condition imposed by law,
22    other than the general limitation that such funds be used
23    for public purposes;
24        (b) to make investigations authorized by or under this

 

 

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

 

 

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

 

 

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1    The Auditor General must conduct an audit of the Health
2Facilities and Services Review Board pursuant to Section 19.5
3of the Illinois Health Facilities Planning Act.
4    The Auditor General must conduct an audit of the Chicago
5Casino Development Authority pursuant to Section 1-60 of the
6Chicago Casino Development Authority Act.
7    The Auditor General of the State of Illinois shall annually
8conduct or cause to be conducted a financial and compliance
9audit of the books and records of any county water commission
10organized pursuant to the Water Commission Act of 1985 and
11shall file a copy of the report of that audit with the Governor
12and the Legislative Audit Commission. The filed audit shall be
13open to the public for inspection. The cost of the audit shall
14be charged to the county water commission in accordance with
15Section 6z-27 of the State Finance Act. The county water
16commission shall make available to the Auditor General its
17books and records and any other documentation, whether in the
18possession of its trustees or other parties, necessary to
19conduct the audit required. These audit requirements apply only
20through July 1, 2007.
21    The Auditor General must conduct audits of the Rend Lake
22Conservancy District as provided in Section 25.5 of the River
23Conservancy Districts Act.
24    The Auditor General must conduct financial audits of the
25Southeastern Illinois Economic Development Authority as
26provided in Section 70 of the Southeastern Illinois Economic

 

 

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1Development Authority Act.
2    The Auditor General shall conduct a compliance audit in
3accordance with subsections (d) and (f) of Section 30 of the
4Innovation Development and Economy Act.
5(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
696-939, eff. 6-24-10.)
 
7    Section 90-15. The State Finance Act is amended by adding
8Sections 5.878, 5.879, 5.880, and 6z-102 and by changing
9Section 6z-45 as follows:
 
10    (30 ILCS 105/5.878 new)
11    Sec. 5.878. The Gaming Facilities Fee Revenue Fund.
 
12    (30 ILCS 105/5.879 new)
13    Sec. 5.879. The Depressed Communities Economic Development
14Fund.
 
15    (30 ILCS 105/5.880 new)
16    Sec. 5.880. The Latino Community Economic Development
17Fund.
 
18    (30 ILCS 105/6z-45)
19    Sec. 6z-45. The School Infrastructure Fund.
20    (a) The School Infrastructure Fund is created as a special
21fund in the State Treasury.

 

 

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1    In addition to any other deposits authorized by law,
2beginning January 1, 2000, on the first day of each month, or
3as soon thereafter as may be practical, the State Treasurer and
4State Comptroller shall transfer the sum of $5,000,000 from the
5General Revenue Fund to the School Infrastructure Fund, except
6that, notwithstanding any other provision of law, and in
7addition to any other transfers that may be provided for by
8law, before June 30, 2012, the Comptroller and the Treasurer
9shall transfer $45,000,000 from the General Revenue Fund into
10the School Infrastructure Fund, and, for fiscal year 2013 only,
11the Treasurer and the Comptroller shall transfer $1,250,000
12from the General Revenue Fund to the School Infrastructure Fund
13on the first day of each month; provided, however, that no such
14transfers shall be made from July 1, 2001 through June 30,
152003.
16    (b) Subject to the transfer provisions set forth below,
17money in the School Infrastructure Fund shall, if and when the
18State of Illinois incurs any bonded indebtedness for the
19construction of school improvements under the School
20Construction Law, be set aside and used for the purpose of
21paying and discharging annually the principal and interest on
22that bonded indebtedness then due and payable, and for no other
23purpose.
24    In addition to other transfers to the General Obligation
25Bond Retirement and Interest Fund made pursuant to Section 15
26of the General Obligation Bond Act, upon each delivery of bonds

 

 

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

 

 

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1capitalized interest account within the General Obligation
2Bond Retirement and Interest Fund shall not be included in the
3calculation of the amounts to be transferred under this
4subsection.
5    (b-5) The money deposited into the School Infrastructure
6Fund from transfers pursuant to subsections (c-30) and (c-35)
7of Section 13 of the Illinois Riverboat Gambling Act shall be
8applied, without further direction, as provided in subsection
9(b-3) of Section 5-35 of the School Construction Law.
10    (c) The surplus, if any, in the School Infrastructure Fund
11after payments made pursuant to subsections (b) and (b-5) of
12this Section shall, subject to appropriation, be used as
13follows:
14    First - to make 3 payments to the School Technology
15Revolving Loan Fund as follows:
16        Transfer of $30,000,000 in fiscal year 1999;
17        Transfer of $20,000,000 in fiscal year 2000; and
18        Transfer of $10,000,000 in fiscal year 2001.
19    Second - to pay the expenses of the State Board of
20Education and the Capital Development Board in administering
21programs under the School Construction Law, the total expenses
22not to exceed $1,200,000 in any fiscal year.
23    Third - to pay any amounts due for grants for school
24construction projects and debt service under the School
25Construction Law.
26    Fourth - to pay any amounts due for grants for school

 

 

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1maintenance projects under the School Construction Law.
2(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
 
3    (30 ILCS 105/6z-102 new)
4    Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.
5    (a) The Gaming Facilities Fee Revenue Fund is created as a
6special fund in the State treasury.
7    (b) The revenues in the Fund shall be used, subject to
8appropriation, by the Comptroller for the purpose of providing
9appropriations to the Illinois Gaming Board for the
10administration and enforcement of the Illinois Gambling Act and
11the applicable provisions of the Chicago Casino Development
12Authority Act, with any remaining amounts being transferred to
13the General Revenue Fund.
14    (c) The Fund shall consist of fee revenues received
15pursuant to subsection (a) of Section 1-45 of the Chicago
16Casino Development Authority Act and pursuant to subsections
17(e-10), (e-15), (h), and (h-5) of Section 7 and subsections
18(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
19Act. All interest earned on moneys in the Fund shall be
20deposited into the Fund.
21    (d) The Fund shall not be subject to administrative charges
22or chargebacks, including, but not limited to, those authorized
23under subsection (h) of Section 8 of this Act.
 
24    Section 90-20. The Illinois Income Tax Act is amended by

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (ii) 4.8% of the taxpayer's net income for the period after
2    December 31, 2024, as calculated under Section 202.5.
3        (14) In the case of a corporation, for taxable years
4    beginning on or after January 1, 2025, an amount equal to
5    4.8% of the taxpayer's net income for the taxable year.
6    The rates under this subsection (b) are subject to the
7provisions of Section 201.5.
8    (b-5) Surcharge; sale or exchange of assets, properties,
9and intangibles of electronic gaming licensees. For each of
10taxable years 2017 through 2025, a surcharge is imposed on all
11taxpayers on income arising from the sale or exchange of
12capital assets, depreciable business property, real property
13used in the trade or business, and Section 197 intangibles (i)
14of an organization licensee under the Illinois Horse Racing Act
15of 1975 and (ii) of an electronic gaming licensee under the
16Illinois Gambling Act. The amount of the surcharge is equal to
17the amount of federal income tax liability for the taxable year
18attributable to those sales and exchanges. The surcharge
19imposed shall not apply if:
20        (1) the electronic gaming license, organization
21    license, or race track property is transferred as a result
22    of any of the following:
23            (A) bankruptcy, a receivership, or a debt
24        adjustment initiated by or against the initial
25        licensee or the substantial owners of the initial
26        licensee;

 

 

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

 

 

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

 

 

SB0007 Engrossed- 97 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 98 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 99 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 100 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            (B) is depreciable pursuant to Section 167 of the
2        Internal Revenue Code, except that "3-year property"
3        as defined in Section 168(c)(2)(A) of that Code is not
4        eligible for the credit provided by this subsection
5        (h);
6            (C) is acquired by purchase as defined in Section
7        179(d) of the Internal Revenue Code; and
8            (D) is not eligible for the Enterprise Zone
9        Investment Credit provided by subsection (f) of this
10        Section.
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 a federally designated Foreign Trade Zone or
17    Sub-Zone located in Illinois by the taxpayer, the amount of
18    such increase shall be deemed property placed in service on
19    the 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 ending on or before
23    December 31, 1996, any property ceases to be qualified
24    property in the hands of the taxpayer within 48 months
25    after being placed in service, or the situs of any
26    qualified property is moved outside Illinois within 48

 

 

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

 

 

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1(b) of this Section for the tax imposed by subsections (c) and
2(d) of this Section. This credit shall be computed by
3multiplying the tax imposed by subsections (c) and (d) of this
4Section by a fraction, the numerator of which is base income
5allocable to Illinois and the denominator of which is Illinois
6base income, and further multiplying the product by the tax
7rate imposed by subsections (a) and (b) of this Section.
8    Any credit earned on or after December 31, 1986 under this
9subsection which is unused in the year the credit is computed
10because it exceeds the tax liability imposed by subsections (a)
11and (b) for that year (whether it exceeds the original
12liability or the liability as later amended) may be carried
13forward and applied to the tax liability imposed by subsections
14(a) and (b) of the 5 taxable years following the excess credit
15year, provided that no credit may be carried forward to any
16year ending on or after December 31, 2003. This credit shall be
17applied first to the earliest year for which there is a
18liability. If there is a credit under this subsection from more
19than one tax year that is available to offset a liability the
20earliest credit arising under this subsection shall be applied
21first.
22    If, during any taxable year ending on or after December 31,
231986, the tax imposed by subsections (c) and (d) of this
24Section for which a taxpayer has claimed a credit under this
25subsection (i) is reduced, the amount of credit for such tax
26shall also be reduced. Such reduction shall be determined by

 

 

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1recomputing the credit to take into account the reduced tax
2imposed by subsections (c) and (d). If any portion of the
3reduced amount of credit has been carried to a different
4taxable year, an amended return shall be filed for such taxable
5year to reduce the amount of credit claimed.
6    (j) Training expense credit. Beginning with tax years
7ending on or after December 31, 1986 and prior to December 31,
82003, a taxpayer shall be allowed a credit against the tax
9imposed by subsections (a) and (b) under this Section for all
10amounts paid or accrued, on behalf of all persons employed by
11the taxpayer in Illinois or Illinois residents employed outside
12of Illinois by a taxpayer, for educational or vocational
13training in semi-technical or technical fields or semi-skilled
14or skilled fields, which were deducted from gross income in the
15computation of taxable income. The credit against the tax
16imposed by subsections (a) and (b) shall be 1.6% of such
17training expenses. For partners, shareholders of subchapter S
18corporations, and owners of limited liability companies, if the
19liability company is treated as a partnership for purposes of
20federal and State income taxation, there shall be allowed a
21credit under this subsection (j) to be determined in accordance
22with the determination of income and distributive share of
23income under Sections 702 and 704 and subchapter S of the
24Internal Revenue Code.
25    Any credit allowed under this subsection which is unused in
26the year the credit is earned may be carried forward to each of

 

 

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1the 5 taxable years following the year for which the credit is
2first computed until it is used. This credit shall be applied
3first to the earliest year for which there is a liability. If
4there is a credit under this subsection from more than one tax
5year that is available to offset a liability the earliest
6credit arising under this subsection shall be applied first. No
7carryforward credit may be claimed in any tax year ending on or
8after December 31, 2003.
9    (k) Research and development credit. For tax years ending
10after July 1, 1990 and prior to December 31, 2003, and
11beginning again for tax years ending on or after December 31,
122004, and ending prior to January 1, 2016, a taxpayer shall be
13allowed a credit against the tax imposed by subsections (a) and
14(b) of this Section for increasing research activities in this
15State. The credit allowed against the tax imposed by
16subsections (a) and (b) shall be equal to 6 1/2% of the
17qualifying expenditures for increasing research activities in
18this State. For partners, shareholders of subchapter S
19corporations, and owners of limited liability companies, if the
20liability company is treated as a partnership for purposes of
21federal and State income taxation, there shall be allowed a
22credit under this subsection to be determined in accordance
23with the determination of income and distributive share of
24income under Sections 702 and 704 and subchapter S of the
25Internal Revenue Code.
26    For purposes of this subsection, "qualifying expenditures"

 

 

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

 

 

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1liability for the given year remains. Any remaining unused
2credit or credits then will be carried forward to the next
3following year in which a tax liability is incurred, except
4that no credit can be carried forward to a year which is more
5than 5 years after the year in which the expense for which the
6credit is given was incurred.
7    No inference shall be drawn from this amendatory Act of the
891st General Assembly in construing this Section for taxable
9years beginning before January 1, 1999.
10    (l) Environmental Remediation Tax Credit.
11        (i) For tax years ending after December 31, 1997 and on
12    or before December 31, 2001, a taxpayer shall be allowed a
13    credit against the tax imposed by subsections (a) and (b)
14    of this Section for certain amounts paid for unreimbursed
15    eligible remediation costs, as specified in this
16    subsection. For purposes of this Section, "unreimbursed
17    eligible remediation costs" means costs approved by the
18    Illinois Environmental Protection Agency ("Agency") under
19    Section 58.14 of the Environmental Protection Act that were
20    paid in performing environmental remediation at a site for
21    which a No Further Remediation Letter was issued by the
22    Agency and recorded under Section 58.10 of the
23    Environmental Protection Act. The credit must be claimed
24    for the taxable year in which Agency approval of the
25    eligible remediation costs is granted. The credit is not
26    available to any taxpayer if the taxpayer or any related

 

 

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

 

 

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1    shareholders of subchapter S corporations, there shall be
2    allowed a credit under this subsection to be determined in
3    accordance with the determination of income and
4    distributive share of income under Sections 702 and 704 and
5    subchapter S of the Internal Revenue Code.
6        (ii) A credit allowed under this subsection that is
7    unused in the year the credit is earned may be carried
8    forward to each of the 5 taxable years following the year
9    for which the credit is first earned until it is used. The
10    term "unused credit" does not include any amounts of
11    unreimbursed eligible remediation costs in excess of the
12    maximum credit per site authorized under paragraph (i).
13    This credit shall be applied first to the earliest year for
14    which there is a liability. If there is a credit under this
15    subsection from more than one tax year that is available to
16    offset a liability, the earliest credit arising under this
17    subsection shall be applied first. A credit allowed under
18    this subsection may be sold to a buyer as part of a sale of
19    all or part of the remediation site for which the credit
20    was granted. The purchaser of a remediation site and the
21    tax credit shall succeed to the unused credit and remaining
22    carry-forward period of the seller. To perfect the
23    transfer, the assignor shall record the transfer in the
24    chain of title for the site and provide written notice to
25    the Director of the Illinois Department of Revenue of the
26    assignor's intent to sell the remediation site and the

 

 

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1    amount of the tax credit to be transferred as a portion of
2    the sale. In no event may a credit be transferred to any
3    taxpayer if the taxpayer or a related party would not be
4    eligible under the provisions of subsection (i).
5        (iii) For purposes of this Section, the term "site"
6    shall have the same meaning as under Section 58.2 of the
7    Environmental Protection Act.
8    (m) Education expense credit. Beginning with tax years
9ending after December 31, 1999, a taxpayer who is the custodian
10of one or more qualifying pupils shall be allowed a credit
11against the tax imposed by subsections (a) and (b) of this
12Section for qualified education expenses incurred on behalf of
13the qualifying pupils. The credit shall be equal to 25% of
14qualified education expenses, but in no event may the total
15credit under this subsection claimed by a family that is the
16custodian of qualifying pupils exceed $500. In no event shall a
17credit under this subsection reduce the taxpayer's liability
18under this Act to less than zero. This subsection is exempt
19from the provisions of Section 250 of this Act.
20    For purposes of this subsection:
21    "Qualifying pupils" means individuals who (i) are
22residents of the State of Illinois, (ii) are under the age of
2321 at the close of the school year for which a credit is
24sought, and (iii) during the school year for which a credit is
25sought were full-time pupils enrolled in a kindergarten through
26twelfth grade education program at any school, as defined in

 

 

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1this subsection.
2    "Qualified education expense" means the amount incurred on
3behalf of a qualifying pupil in excess of $250 for tuition,
4book fees, and lab fees at the school in which the pupil is
5enrolled during the regular school year.
6    "School" means any public or nonpublic elementary or
7secondary school in Illinois that is in compliance with Title
8VI of the Civil Rights Act of 1964 and attendance at which
9satisfies the requirements of Section 26-1 of the School Code,
10except that nothing shall be construed to require a child to
11attend any particular public or nonpublic school to qualify for
12the credit under this Section.
13    "Custodian" means, with respect to qualifying pupils, an
14Illinois resident who is a parent, the parents, a legal
15guardian, or the legal guardians of the qualifying pupils.
16    (n) River Edge Redevelopment Zone site remediation tax
17credit.
18        (i) For tax years ending on or after December 31, 2006,
19    a taxpayer shall be allowed a credit against the tax
20    imposed by subsections (a) and (b) of this Section for
21    certain amounts paid for unreimbursed eligible remediation
22    costs, as specified in this subsection. For purposes of
23    this Section, "unreimbursed eligible remediation costs"
24    means costs approved by the Illinois Environmental
25    Protection Agency ("Agency") under Section 58.14a of the
26    Environmental Protection Act that were paid in performing

 

 

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

 

 

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1    $100,000 per site.
2        (ii) A credit allowed under this subsection that is
3    unused in the year the credit is earned may be carried
4    forward to each of the 5 taxable years following the year
5    for which the credit is first earned until it is used. This
6    credit shall be applied first to the earliest year for
7    which there is a liability. If there is a credit under this
8    subsection from more than one tax year that is available to
9    offset a liability, the earliest credit arising under this
10    subsection shall be applied first. A credit allowed under
11    this subsection may be sold to a buyer as part of a sale of
12    all or part of the remediation site for which the credit
13    was granted. The purchaser of a remediation site and the
14    tax credit shall succeed to the unused credit and remaining
15    carry-forward period of the seller. To perfect the
16    transfer, the assignor shall record the transfer in the
17    chain of title for the site and provide written notice to
18    the Director of the Illinois Department of Revenue of the
19    assignor's intent to sell the remediation site and the
20    amount of the tax credit to be transferred as a portion of
21    the sale. In no event may a credit be transferred to any
22    taxpayer if the taxpayer or a related party would not be
23    eligible under the provisions of subsection (i).
24        (iii) For purposes of this Section, the term "site"
25    shall have the same meaning as under Section 58.2 of the
26    Environmental Protection Act.

 

 

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

 

 

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

 

 

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1copyright royalties, and prizes awarded under the Illinois
2Lottery Law, and, for taxable years ending on or after December
331, 2017, wagering and gambling winnings from Illinois sources
4as set forth in subsection (e-1) of this Section, to the extent
5such item constitutes nonbusiness income, together with any
6item of deduction directly allocable thereto, shall be
7allocated by any person other than a resident as provided in
8this Section.
9    (b) Capital gains and losses.
10        (1) Real property. Capital gains and losses from sales
11    or exchanges of real property are allocable to this State
12    if the property is located in this State.
13        (2) Tangible personal property. Capital gains and
14    losses from sales or exchanges of tangible personal
15    property are allocable to this State if, at the time of
16    such sale or exchange:
17            (A) The property had its situs in this State; or
18            (B) The taxpayer had its commercial domicile in
19        this State and was not taxable in the state in which
20        the property had its situs.
21        (3) Intangibles. Capital gains and losses from sales or
22    exchanges of intangible personal property are allocable to
23    this State if the taxpayer had its commercial domicile in
24    this State at the time of such sale or exchange.
25    (c) Rents and royalties.
26        (1) Real property. Rents and royalties from real

 

 

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

 

 

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

 

 

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

 

 

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1    to a net income tax regardless of whether, in fact, the
2    state does or does not.
3    (g) Cross references.
4        (1) For allocation of interest and dividends by persons
5    other than residents, see Section 301(c)(2).
6        (2) For allocation of nonbusiness income by residents,
7    see Section 301(a).
8(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
 
9    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
10    Sec. 304. Business income of persons other than residents.
11    (a) In general. The business income of a person other than
12a resident shall be allocated to this State if such person's
13business income is derived solely from this State. If a person
14other than a resident derives business income from this State
15and one or more other states, then, for tax years ending on or
16before December 30, 1998, and except as otherwise provided by
17this Section, such person's business income shall be
18apportioned to this State by multiplying the income by a
19fraction, the numerator of which is the sum of the property
20factor (if any), the payroll factor (if any) and 200% of the
21sales factor (if any), and the denominator of which is 4
22reduced by the number of factors other than the sales factor
23which have a denominator of zero and by an additional 2 if the
24sales factor has a denominator of zero. For tax years ending on
25or after December 31, 1998, and except as otherwise provided by

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            or terminates in this State.
2                (c) 100% of the receipts from interstate end
3            user access line charges, if the customer's
4            service address is in this State. As used in this
5            subdivision, "interstate end user access line
6            charges" includes, but is not limited to, the
7            surcharge approved by the federal communications
8            commission and levied pursuant to 47 CFR 69.
9                (d) Gross receipts from sales of
10            telecommunication services or from ancillary
11            services for telecommunications services sold to
12            other telecommunication service providers for
13            resale shall be sourced to this State using the
14            apportionment concepts used for non-resale
15            receipts of telecommunications services if the
16            information is readily available to make that
17            determination. If the information is not readily
18            available, then the taxpayer may use any other
19            reasonable and consistent method.
20        (B-7) For taxable years ending on or after December 31,
21    2008, receipts from the sale of broadcasting services are
22    in this State if the broadcasting services are received in
23    this State. For purposes of this paragraph (B-7), the
24    following terms have the following meanings:
25            "Advertising revenue" means consideration received
26        by the taxpayer in exchange for broadcasting services

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0007 Engrossed- 155 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 156 -LRB100 06307 AMC 16345 b

1        (C-5) For taxable years ending on or after December 31,
2    2008, sales, other than sales governed by paragraphs (B),
3    (B-1), (B-2), (B-5), and (B-7), are in this State if any of
4    the following criteria are met:
5            (i) Sales from the sale or lease of real property
6        are in this State if the property is located in this
7        State.
8            (ii) Sales from the lease or rental of tangible
9        personal property are in this State if the property is
10        located in this State during the rental period. Sales
11        from the lease or rental of tangible personal property
12        that is characteristically moving property, including,
13        but not limited to, motor vehicles, rolling stock,
14        aircraft, vessels, or mobile equipment are in this
15        State to the extent that the property is used in this
16        State.
17            (iii) In the case of interest, net gains (but not
18        less than zero) and other items of income from
19        intangible personal property, the sale is in this State
20        if:
21                (a) in the case of a taxpayer who is a dealer
22            in the item of intangible personal property within
23            the meaning of Section 475 of the Internal Revenue
24            Code, the income or gain is received from a
25            customer in this State. For purposes of this
26            subparagraph, a customer is in this State if the

 

 

SB0007 Engrossed- 157 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 158 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 159 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

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

 

 

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1        other securities managed within this State;
2            (C) Dividends, and interest from Illinois
3        customers, which are received within this State;
4            (D) Interest charged to customers at places of
5        business maintained within this State for carrying
6        debit balances of margin accounts, without deduction
7        of any costs incurred in carrying such accounts; and
8            (E) Any other gross income resulting from the
9        operation as a financial organization within this
10        State. In computing the amounts referred to in
11        paragraphs (A) through (E) of this subsection, any
12        amount received by a member of an affiliated group
13        (determined under Section 1504(a) of the Internal
14        Revenue Code but without reference to whether any such
15        corporation is an "includible corporation" under
16        Section 1504(b) of the Internal Revenue Code) from
17        another member of such group shall be included only to
18        the extent such amount exceeds expenses of the
19        recipient directly related thereto.
20        (2) International Banking Facility. For taxable years
21    ending before December 31, 2008:
22            (A) Adjusted Income. The adjusted income of an
23        international banking facility is its income reduced
24        by the amount of the floor amount.
25            (B) Floor Amount. The floor amount shall be the
26        amount, if any, determined by multiplying the income of

 

 

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1        the international banking facility by a fraction, not
2        greater than one, which is determined as follows:
3                (i) The numerator shall be:
4                The average aggregate, determined on a
5            quarterly basis, of the financial organization's
6            loans to banks in foreign countries, to foreign
7            domiciled borrowers (except where secured
8            primarily by real estate) and to foreign
9            governments and other foreign official
10            institutions, as reported for its branches,
11            agencies and offices within the state on its
12            "Consolidated Report of Condition", Schedule A,
13            Lines 2.c., 5.b., and 7.a., which was filed with
14            the Federal Deposit Insurance Corporation and
15            other regulatory authorities, for the year 1980,
16            minus
17                The average aggregate, determined on a
18            quarterly basis, of such loans (other than loans of
19            an international banking facility), as reported by
20            the financial institution for its branches,
21            agencies and offices within the state, on the
22            corresponding Schedule and lines of the
23            Consolidated Report of Condition for the current
24            taxable year, provided, however, that in no case
25            shall the amount determined in this clause (the
26            subtrahend) exceed the amount determined in the

 

 

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

 

 

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1        (3) For taxable years ending on or after December 31,
2    2008, the business income of a financial organization shall
3    be apportioned to this State by multiplying such income by
4    a fraction, the numerator of which is its gross receipts
5    from sources in this State or otherwise attributable to
6    this State's marketplace and the denominator of which is
7    its gross receipts everywhere during the taxable year.
8    "Gross receipts" for purposes of this subparagraph (3)
9    means gross income, including net taxable gain on
10    disposition of assets, including securities and money
11    market instruments, when derived from transactions and
12    activities in the regular course of the financial
13    organization's trade or business. The following examples
14    are illustrative:
15            (i) Receipts from the lease or rental of real or
16        tangible personal property are in this State if the
17        property is located in this State during the rental
18        period. Receipts from the lease or rental of tangible
19        personal property that is characteristically moving
20        property, including, but not limited to, motor
21        vehicles, rolling stock, aircraft, vessels, or mobile
22        equipment are from sources in this State to the extent
23        that the property is used in this State.
24            (ii) Interest income, commissions, fees, gains on
25        disposition, and other receipts from assets in the
26        nature of loans that are secured primarily by real

 

 

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

 

 

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

 

 

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

 

 

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1                in the investment account to be attributed to
2                this State and included in the numerator is
3                determined by multiplying all such income from
4                such assets and activities by a fraction, the
5                numerator of which is the gross income from
6                such assets and activities which are properly
7                assigned to a fixed place of business of the
8                taxpayer within this State and the denominator
9                of which is the gross income from all such
10                assets and activities.
11                    (B) The amount of interest from federal
12                funds sold and purchased and from securities
13                purchased under resale agreements and
14                securities sold under repurchase agreements
15                attributable to this State and included in the
16                numerator is determined by multiplying the
17                amount described in subparagraph (A) of
18                paragraph (1) of this subsection from such
19                funds and such securities by a fraction, the
20                numerator of which is the gross income from
21                such funds and such securities which are
22                properly assigned to a fixed place of business
23                of the taxpayer within this State and the
24                denominator of which is the gross income from
25                all such funds and such securities.
26                    (C) The amount of interest, dividends,

 

 

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1                gains, and other income from trading assets and
2                activities, including but not limited to
3                assets and activities in the matched book, in
4                the arbitrage book and foreign currency
5                transactions (but excluding amounts described
6                in subparagraphs (A) or (B) of this paragraph),
7                attributable to this State and included in the
8                numerator is determined by multiplying the
9                amount described in subparagraph (B) of
10                paragraph (1) of this subsection by a fraction,
11                the numerator of which is the gross income from
12                such trading assets and activities which are
13                properly assigned to a fixed place of business
14                of the taxpayer within this State and the
15                denominator of which is the gross income from
16                all such assets and activities.
17                    (D) Properly assigned, for purposes of
18                this paragraph (2) of this subsection, means
19                the investment or trading asset or activity is
20                assigned to the fixed place of business with
21                which it has a preponderance of substantive
22                contacts. An investment or trading asset or
23                activity assigned by the taxpayer to a fixed
24                place of business without the State shall be
25                presumed to have been properly assigned if:
26                        (i) the taxpayer has assigned, in the

 

 

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

 

 

SB0007 Engrossed- 172 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 173 -LRB100 06307 AMC 16345 b

1denominator of which is its business income from all sources.
2For purposes of this subsection, the business income within
3this State of a federally regulated exchange is the sum of the
4following:
5        (1) Receipts attributable to transactions executed on
6    a physical trading floor if that physical trading floor is
7    located in this State.
8        (2) Receipts attributable to all other matching,
9    execution, or clearing transactions, including without
10    limitation receipts from the provision of matching,
11    execution, or clearing services to another entity,
12    multiplied by (i) for taxable years ending on or after
13    December 31, 2012 but before December 31, 2013, 63.77%; and
14    (ii) for taxable years ending on or after December 31,
15    2013, 27.54%.
16        (3) All other receipts not governed by subparagraphs
17    (1) or (2) of this subsection (c-1), to the extent the
18    receipts would be characterized as "sales in this State"
19    under item (3) of subsection (a) of this Section.
20    "Federally regulated exchange" means (i) a "registered
21entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
22or (C), (ii) an "exchange" or "clearing agency" within the
23meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
24entities regulated under any successor regulatory structure to
25the foregoing, and (iv) all taxpayers who are members of the
26same unitary business group as a federally regulated exchange,

 

 

SB0007 Engrossed- 174 -LRB100 06307 AMC 16345 b

1determined without regard to the prohibition in Section
21501(a)(27) of this Act against including in a unitary business
3group taxpayers who are ordinarily required to apportion
4business income under different subsections of this Section;
5provided that this subparagraph (iv) shall apply only if 50% or
6more of the business receipts of the unitary business group
7determined by application of this subparagraph (iv) for the
8taxable year are attributable to the matching, execution, or
9clearing of transactions conducted by an entity described in
10subparagraph (i), (ii), or (iii) of this paragraph.
11    In no event shall the Illinois apportionment percentage
12computed in accordance with this subsection (c-1) for any
13taxpayer for any tax year be less than the Illinois
14apportionment percentage computed under this subsection (c-1)
15for that taxpayer for the first full tax year ending on or
16after December 31, 2013 for which this subsection (c-1) applied
17to the taxpayer.
18    (d) Transportation services. For taxable years ending
19before December 31, 2008, business income derived from
20furnishing transportation services shall be apportioned to
21this State in accordance with paragraphs (1) and (2):
22        (1) Such business income (other than that derived from
23    transportation by pipeline) shall be apportioned to this
24    State by multiplying such income by a fraction, the
25    numerator of which is the revenue miles of the person in
26    this State, and the denominator of which is the revenue

 

 

SB0007 Engrossed- 175 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 176 -LRB100 06307 AMC 16345 b

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

 

 

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1        transportation by railroad; and
2            (B) relative gross receipts from passenger and
3        freight transportation, in case of transportation
4        other than by railroad.
5        (4) For taxable years ending on or after December 31,
6    2008, business income derived from furnishing airline
7    transportation services shall be apportioned to this State
8    by multiplying such income by a fraction, the numerator of
9    which is the revenue miles of the person in this State, and
10    the denominator of which is the revenue miles of the person
11    everywhere. For purposes of this paragraph, a revenue mile
12    is the transportation of one passenger or one net ton of
13    freight the distance of one mile for a consideration. If a
14    person is engaged in the transportation of both passengers
15    and freight, the fraction above referred to shall be
16    determined by means of an average of the passenger revenue
17    mile fraction and the freight revenue mile fraction,
18    weighted to reflect the person's relative gross receipts
19    from passenger and freight airline transportation.
20    (e) Combined apportionment. Where 2 or more persons are
21engaged in a unitary business as described in subsection
22(a)(27) of Section 1501, a part of which is conducted in this
23State by one or more members of the group, the business income
24attributable to this State by any such member or members shall
25be apportioned by means of the combined apportionment method.
26    (f) Alternative allocation. If the allocation and

 

 

SB0007 Engrossed- 178 -LRB100 06307 AMC 16345 b

1apportionment provisions of subsections (a) through (e) and of
2subsection (h) do not, for taxable years ending before December
331, 2008, fairly represent the extent of a person's business
4activity in this State, or, for taxable years ending on or
5after December 31, 2008, fairly represent the market for the
6person's goods, services, or other sources of business income,
7the person may petition for, or the Director may, without a
8petition, permit or require, in respect of all or any part of
9the person's business activity, if reasonable:
10        (1) Separate accounting;
11        (2) The exclusion of any one or more factors;
12        (3) The inclusion of one or more additional factors
13    which will fairly represent the person's business
14    activities or market in this State; or
15        (4) The employment of any other method to effectuate an
16    equitable allocation and apportionment of the person's
17    business income.
18    (g) Cross reference. For allocation of business income by
19residents, see Section 301(a).
20    (h) For tax years ending on or after December 31, 1998, the
21apportionment factor of persons who apportion their business
22income to this State under subsection (a) shall be equal to:
23        (1) for tax years ending on or after December 31, 1998
24    and before December 31, 1999, 16 2/3% of the property
25    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
26    the sales factor;

 

 

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1        (2) for tax years ending on or after December 31, 1999
2    and before December 31, 2000, 8 1/3% of the property factor
3    plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
4    factor;
5        (3) for tax years ending on or after December 31, 2000,
6    the sales factor.
7If, in any tax year ending on or after December 31, 1998 and
8before December 31, 2000, the denominator of the payroll,
9property, or sales factor is zero, the apportionment factor
10computed in paragraph (1) or (2) of this subsection for that
11year shall be divided by an amount equal to 100% minus the
12percentage weight given to each factor whose denominator is
13equal to zero.
14(Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,
15eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)
 
16    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
17    Sec. 710. Withholding from lottery winnings.
18    (a) In general.
19        (1) Any person making a payment to a resident or
20    nonresident of winnings under the Illinois Lottery Law and
21    not required to withhold Illinois income tax from such
22    payment under Subsection (b) of Section 701 of this Act
23    because those winnings are not subject to Federal income
24    tax withholding, must withhold Illinois income tax from
25    such payment at a rate equal to the percentage tax rate for

 

 

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1    individuals provided in subsection (b) of Section 201,
2    provided that withholding is not required if such payment
3    of winnings is less than $1,000.
4        (2) In the case of an assignment of a lottery prize
5    under Section 13.1 of the Illinois Lottery Law, any person
6    making a payment of the purchase price after December 31,
7    2013, shall withhold from the amount of each payment at a
8    rate equal to the percentage tax rate for individuals
9    provided in subsection (b) of Section 201.
10        (3) Any person making a payment after December 31, 2017
11    to a resident or nonresident of winnings from pari-mutuel
12    wagering conducted at a wagering facility licensed under
13    the Illinois Horse Racing Act of 1975 or from gambling
14    games conducted on a riverboat or in a casino or electronic
15    gaming facility licensed under the Illinois Gambling Act
16    must withhold Illinois income tax from such payment at a
17    rate equal to the percentage tax rate for individuals
18    provided in subsection (b) of Section 201, provided that
19    the person making the payment is required to withhold under
20    Section 3402(q) of the Internal Revenue Code.
21    (b) Credit for taxes withheld. Any amount withheld under
22Subsection (a) shall be a credit against the Illinois income
23tax liability of the person to whom the payment of winnings was
24made for the taxable year in which that person incurred an
25Illinois income tax liability with respect to those winnings.
26(Source: P.A. 98-496, eff. 1-1-14.)
 

 

 

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1    Section 90-23. The Property Tax Code is amended by adding
2Section 15-144 as follows:
 
3    (35 ILCS 200/15-144 new)
4    Sec. 15-144. Chicago Casino Development Authority. All
5property owned by the Chicago Casino Development Authority is
6exempt. Any property owned by the Chicago Casino Development
7Authority and leased to any other entity is not exempt.
 
8    Section 90-24. The Illinois Municipal Code is amended by
9adding Section 8-10-2.6 as follows:
 
10    (65 ILCS 5/8-10-2.6 new)
11    Sec. 8-10-2.6. Chicago Casino Development Authority.
12Except as otherwise provided in the Chicago Casino Development
13Authority Act, this Division 10 applies to purchase orders and
14contracts relating to the Chicago Casino Development
15Authority.
 
16    Section 90-25. The Joliet Regional Port District Act is
17amended by changing Section 5.1 as follows:
 
18    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
19    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
20any other provision of this Act, the District may not regulate

 

 

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

 

 

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1Director with an application fee of $300. The approval for the
2limited purpose branch must be renewed concurrently with the
3renewal of the licensee's license along with a renewal fee of
4$300 for the limited purpose branch.
5    (c) The books, accounts, records, and files of the limited
6purpose branch's transactions shall be maintained at the
7licensee's licensed location. The licensee shall notify the
8Director of the licensed location at which the books, accounts,
9records, and files shall be maintained.
10    (d) The licensee shall prominently display at the limited
11purpose branch the address and telephone number of the
12licensee's licensed location.
13    (e) No other business shall be conducted at the site of the
14limited purpose branch unless authorized by the Director.
15    (f) The Director shall make and enforce reasonable rules
16for the conduct of a limited purpose branch.
17    (g) A limited purpose branch may not be located within
181,000 feet of a facility operated by an inter-track wagering
19licensee or an organization licensee subject to the Illinois
20Horse Racing Act of 1975, on a riverboat or in a casino subject
21to the Illinois Riverboat Gambling Act, or within 1,000 feet of
22the location at which the riverboat docks or within 1,000 feet
23of a casino.
24(Source: P.A. 90-437, eff. 1-1-98.)
 
25    Section 90-35. The Illinois Horse Racing Act of 1975 is

 

 

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1amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
220, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,
3and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
434.3, and 56 as follows:
 
5    (230 ILCS 5/1.2)
6    Sec. 1.2. Legislative intent. This Act is intended to
7benefit the people of the State of Illinois by encouraging the
8breeding and production of race horses, assisting economic
9development and promoting Illinois tourism. The General
10Assembly finds and declares it to be the public policy of the
11State of Illinois to:
12    (a) support and enhance Illinois' horse racing industry,
13which is a significant component within the agribusiness
14industry;
15    (b) ensure that Illinois' horse racing industry remains
16competitive with neighboring states;
17    (c) stimulate growth within Illinois' horse racing
18industry, thereby encouraging new investment and development
19to produce additional tax revenues and to create additional
20jobs;
21    (d) promote the further growth of tourism;
22    (e) encourage the breeding of thoroughbred and
23standardbred horses in this State; and
24    (f) ensure that public confidence and trust in the
25credibility and integrity of racing operations and the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1appearance of causing a conflict of interest. A conflict of
2interest exists if a situation influences or creates the
3appearance that it may influence judgment or performance of
4regulatory duties and responsibilities. This prohibition shall
5extend to any act identified by Board action that, in the
6judgment of the Board, could represent the potential for or the
7appearance of a conflict of interest.
8    (e) Board members and employees may not accept any gift,
9gratuity, service, compensation, travel, lodging, or thing of
10value, with the exception of unsolicited items of an incidental
11nature, from any person, corporation, limited liability
12company, or entity doing business with the Board.
13    (f) A Board member or employee shall not use or attempt to
14use his or her official position to secure, or attempt to
15secure, any privilege, advantage, favor, or influence for
16himself or herself or others. No Board member or employee,
17within a period of one year immediately preceding nomination by
18the Governor or employment, shall have been employed or
19received compensation or fees for services from a person or
20entity, or its parent or affiliate, that has engaged in
21business with the Board, a licensee or a licensee under the
22Illinois Gambling Act. In addition, all Board members and
23employees are subject to the restrictions set forth in Section
245-45 of the State Officials and Employees Ethics Act.
25(Source: P.A. 89-16, eff. 5-30-95.)
 

 

 

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1    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
2    Sec. 9. The Board shall have all powers necessary and
3proper to fully and effectively execute the provisions of this
4Act, including, but not limited to, the following:
5    (a) The Board is vested with jurisdiction and supervision
6over all race meetings in this State, over all licensees doing
7business in this State, over all occupation licensees, and over
8all persons on the facilities of any licensee. Such
9jurisdiction shall include the power to issue licenses to the
10Illinois Department of Agriculture authorizing the pari-mutuel
11system of wagering on harness and Quarter Horse races held (1)
12at the Illinois State Fair in Sangamon County, and (2) at the
13DuQuoin State Fair in Perry County. The jurisdiction of the
14Board shall also include the power to issue licenses to county
15fairs which are eligible to receive funds pursuant to the
16Agricultural Fair Act, as now or hereafter amended, or their
17agents, authorizing the pari-mutuel system of wagering on horse
18races conducted at the county fairs receiving such licenses.
19Such licenses shall be governed by subsection (n) of this
20Section.
21    Upon application, the Board shall issue a license to the
22Illinois Department of Agriculture to conduct harness and
23Quarter Horse races at the Illinois State Fair and at the
24DuQuoin State Fairgrounds during the scheduled dates of each
25fair. The Board shall not require and the Department of
26Agriculture shall be exempt from the requirements of Sections

 

 

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115.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
2(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
3and 25. The Board and the Department of Agriculture may extend
4any or all of these exemptions to any contractor or agent
5engaged by the Department of Agriculture to conduct its race
6meetings when the Board determines that this would best serve
7the public interest and the interest of horse racing.
8    Notwithstanding any provision of law to the contrary, it
9shall be lawful for any licensee to operate pari-mutuel
10wagering or contract with the Department of Agriculture to
11operate pari-mutuel wagering at the DuQuoin State Fairgrounds
12or for the Department to enter into contracts with a licensee,
13employ its owners, employees or agents and employ such other
14occupation licensees as the Department deems necessary in
15connection with race meetings and wagerings.
16    (b) The Board is vested with the full power to promulgate
17reasonable rules and regulations for the purpose of
18administering the provisions of this Act and to prescribe
19reasonable rules, regulations and conditions under which all
20horse race meetings or wagering in the State shall be
21conducted. Such reasonable rules and regulations are to provide
22for the prevention of practices detrimental to the public
23interest and to promote the best interests of horse racing and
24to impose penalties for violations thereof.
25    (c) The Board, and any person or persons to whom it
26delegates this power, is vested with the power to enter the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1and the application fee for racing dates in 2 or 3 successive
2calendar years as provided in subsection (b) of Section 21
3shall be $20,000. All filing fees shall be deposited into the
4Horse Racing Fund.
5    (b) In addition to the filing fee imposed by subsection (a)
6of $1000 and the fees provided in subsection (j) of Section 20,
7each organization licensee shall pay a license fee of $100 for
8each racing program on which its daily pari-mutuel handle is
9$400,000 or more but less than $700,000, and a license fee of
10$200 for each racing program on which its daily pari-mutuel
11handle is $700,000 or more. The additional fees required to be
12paid under this Section by this amendatory Act of 1982 shall be
13remitted by the organization licensee to the Illinois Racing
14Board with each day's graduated privilege tax or pari-mutuel
15tax and breakage as provided under Section 27. 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 license fee imposed
19by this subsection (b) shall be $200 for each racing program on
20which the organization licensee's daily pari-mutuel handle is
21$100,000 or more, but less than $400,000, and the license fee
22imposed by this subsection (b) shall be $400 for each racing
23program on which the organization licensee's daily pari-mutuel
24handle is $400,000 or more.
25    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
26Municipal Code," approved May 29, 1961, as now or hereafter

 

 

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1amended, shall not apply to any license under this Act.
2(Source: P.A. 97-1060, eff. 8-24-12.)
 
3    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
4    Sec. 19. (a) No organization license may be granted to
5conduct a horse race meeting:
6        (1) except as provided in subsection (c) of Section 21
7    of this Act, to any person at any place within 35 miles of
8    any other place licensed by the Board to hold a race
9    meeting on the same date during the same hours, the mileage
10    measurement used in this subsection (a) shall be certified
11    to the Board by the Bureau of Systems and Services in the
12    Illinois Department of Transportation as the most commonly
13    used public way of vehicular travel;
14        (2) to any person in default in the payment of any
15    obligation or debt due the State under this Act, provided
16    no applicant shall be deemed in default in the payment of
17    any obligation or debt due to the State under this Act as
18    long as there is pending a hearing of any kind relevant to
19    such matter;
20        (3) to any person who has been convicted of the
21    violation of any law of the United States or any State law
22    which provided as all or part of its penalty imprisonment
23    in any penal institution; to any person against whom there
24    is pending a Federal or State criminal charge; to any
25    person who is or has been connected with or engaged in the

 

 

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1    operation of any illegal business; to any person who does
2    not enjoy a general reputation in his community of being an
3    honest, upright, law-abiding person; provided that none of
4    the matters set forth in this subparagraph (3) shall make
5    any person ineligible to be granted an organization license
6    if the Board determines, based on circumstances of any such
7    case, that the granting of a license would not be
8    detrimental to the interests of horse racing and of the
9    public;
10        (4) to any person who does not at the time of
11    application for the organization license own or have a
12    contract or lease for the possession of a finished race
13    track suitable for the type of racing intended to be held
14    by the applicant and for the accommodation of the public.
15    (b) (Blank) Horse racing on Sunday shall be prohibited
16unless authorized by ordinance or referendum of the
17municipality in which a race track or any of its appurtenances
18or facilities are located, or utilized.
19    (c) If any person is ineligible to receive an organization
20license because of any of the matters set forth in subsection
21(a) (2) or subsection (a) (3) of this Section, any other or
22separate person that either (i) controls, directly or
23indirectly, such ineligible person or (ii) is controlled,
24directly or indirectly, by such ineligible person or by a
25person which controls, directly or indirectly, such ineligible
26person shall also be ineligible.

 

 

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1(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
2    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
3    Sec. 20. (a) Any person desiring to conduct a horse race
4meeting may apply to the Board for an organization license. The
5application shall be made on a form prescribed and furnished by
6the Board. The application shall specify:
7        (1) the dates on which it intends to conduct the horse
8    race meeting, which dates shall be provided under Section
9    21;
10        (2) the hours of each racing day between which it
11    intends to hold or conduct horse racing at such meeting;
12        (3) the location where it proposes to conduct the
13    meeting; and
14        (4) any other information the Board may reasonably
15    require.
16    (b) A separate application for an organization license
17shall be filed for each horse race meeting which such person
18proposes to hold. Any such application, if made by an
19individual, or by any individual as trustee, shall be signed
20and verified under oath by such individual. If the application
21is made by individuals, then it shall be signed and verified
22under oath by at least 2 of the individuals; if the application
23is made by or a partnership, it shall be signed and verified
24under oath by at least 2 of such individuals or members of such
25partnership as the case may be. If made by an association, a

 

 

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

 

 

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1    its incorporation shall be specified.
2    (d) The applicant shall execute and file with the Board a
3good faith affirmative action plan to recruit, train, and
4upgrade minorities in all classifications within the
5association.
6    (e) With such application there shall be delivered to the
7Board a certified check or bank draft payable to the order of
8the Board for an amount equal to $1,000. All applications for
9the issuance of an organization license shall be filed with the
10Board before August 1 of the year prior to the year for which
11application is made and shall be acted upon by the Board at a
12meeting to be held on such date as shall be fixed by the Board
13during the last 15 days of September of such prior year. At
14such meeting, the Board shall announce the award of the racing
15meets, live racing schedule, and designation of host track to
16the applicants and its approval or disapproval of each
17application. No announcement shall be considered binding until
18a formal order is executed by the Board, which shall be
19executed no later than October 15 of that prior year. Absent
20the agreement of the affected organization licensees, the Board
21shall not grant overlapping race meetings to 2 or more tracks
22that are within 100 miles of each other to conduct the
23thoroughbred racing.
24    (e-1) In awarding standardbred racing dates for calendar
25year 2018, the Board shall award at least 160 racing dates, and
26each organization licensee shall average at least 10 races for

 

 

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1each racing date awarded. In awarding standardbred racing dates
2for calendar year 2019, the Board shall award at least 200
3racing dates, and each organization licensee shall average at
4least 11 races for each racing date awarded. In awarding
5standardbred racing dates for calendar year 2020 and
6thereafter, the Board shall award at least 260 racing dates,
7and each organization licensee shall average at least 11 races
8for each racing date awarded unless a lesser schedule of live
9racing is a result of an agreement with the organization
10representing the largest number of standardbred owners,
11breeders, trainers, drivers, caretakers in the State.
12Standardbred racing conducted in Sangamon County shall not be
13considered races under this subsection (e-1).
14    (e-2) In awarding racing dates for calendar year 2018 and
15thereafter, the Board shall award thoroughbred racing days to
16Cook County organization licensees commensurate with these
17organization licensees' requirement that they shall run at
18least 1,950 thoroughbred races in the aggregate, so long as 2
19organization licensees are conducting electronic gaming
20operations. Additionally, if the organization licensees that
21run thoroughbred races in Cook County are conducting electronic
22gaming operations, the Board shall increase the number of
23thoroughbred races to be run in Cook County in the aggregate to
24at least the following:
25        (i) 2,050 races in any year following the most recent
26    preceding complete calendar year when the combined

 

 

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

 

 

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1    operating at Cook County race tracks total in excess of
2    $450,000,000, but do not exceed $500,000,000;
3        (vii) 2,550 races in any year following the most recent
4    preceding complete calendar year when the combined
5    adjusted gross receipts of the electronic gaming licensees
6    operating at Cook County race tracks exceeds $500,000,000.
7    In awarding racing dates under this subsection (e-2), the
8Board shall have the discretion to allocate those thoroughbred
9racing dates among these Cook County organization licensees.
10    (e-3) In awarding racing dates for calendar year 2018 and
11thereafter in connection with a race track in Madison County,
12the Board shall award racing dates and such organization
13licensee shall run at least 700 thoroughbred races at the race
14track in Madison County each year.
15    Notwithstanding Section 7.7 of the Illinois Gambling Act or
16any provision of this Act other than subsection (e-4.5), for
17each calendar year for which an electronic gaming licensee
18located in Madison County requests racing dates resulting in
19less than 700 live thoroughbred races at its race track
20facility, the electronic gaming licensee may not conduct
21electronic gaming for the calendar year of such requested live
22races.
23    (e-4) Notwithstanding the provisions of Section 7.7 of the
24Illinois Gambling Act or any provision of this Act other than
25subsections (e-3) and (e-4.5), for each calendar year for which
26an electronic gaming licensee requests thoroughbred racing

 

 

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1dates which results in a number of live races under its
2organization license that is less than the total number of live
3races which it conducted in 2016 at its race track facility,
4the electronic gaming licensee may not conduct electronic
5gaming for the calendar year of such requested live races.
6    (e-4.1) Notwithstanding the provisions of Section 7.7 of
7the Illinois Gambling Act or any provision of this Act other
8than subsections (e-3) and (e-4.5), for each calendar year for
9which an organization licensee requests racing dates for
10standardbred racing which results in a number of live races
11that is less than the total number of live races required in
12subsection (e-1), the electronic gaming licensee may not
13conduct electronic gaming for the calendar year of such
14requested live races.
15    (e-4.5) The Board shall ensure that each organization
16licensee shall individually run a sufficient number of races
17per year to qualify for an electronic gaming license under this
18Act. The General Assembly finds that the minimum live racing
19guarantees contained in subsections (e-1), (e-2), and (e-3) are
20in the best interest of the sport of horse racing, and that
21such guarantees may only be reduced in the limited
22circumstances described in this subsection. The Board may
23decrease the number of racing days without affecting an
24organization licensee's ability to conduct electronic gaming
25only if the Board determines, after notice and hearing, that:
26        (i) a decrease is necessary to maintain a sufficient

 

 

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1    number of betting interests per race to ensure the
2    integrity of racing;
3        (ii) there are unsafe track conditions due to weather
4    or acts of God;
5        (iii) there is an agreement between an organization
6    licensee and the breed association that is applicable to
7    the involved live racing guarantee, such association
8    representing either the largest number of thoroughbred
9    owners and trainers or the largest number of standardbred
10    owners, trainers and drivers who race horses at the
11    involved organization licensee's racing meeting, so long
12    as the agreement does not compromise the integrity of the
13    sport of horse racing; or
14        (iv) the horse population or purse levels are
15    insufficient to provide the number of racing opportunities
16    otherwise required in this Act.
17    In decreasing the number of racing dates in accordance with
18this subsection, the Board shall hold a hearing and shall
19provide the public and all interested parties notice and an
20opportunity to be heard. The Board shall accept testimony from
21all interested parties, including any association representing
22owners, trainers, jockeys, or drivers who will be affected by
23the decrease in racing dates. The Board shall provide a written
24explanation of the reasons for the decrease and the Board's
25findings. The written explanation shall include a listing and
26content of all communication between any party and any Illinois

 

 

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1Racing Board member or staff that does not take place at a
2public meeting of the Board.
3    (e-5) In reviewing an application for the purpose of
4granting an organization license consistent with the best
5interests of the public and the sport of horse racing, the
6Board shall consider:
7        (1) the character, reputation, experience, and
8    financial integrity of the applicant and of any other
9    separate person that either:
10            (i) controls the applicant, directly or
11        indirectly, or
12            (ii) is controlled, directly or indirectly, by
13        that applicant or by a person who controls, directly or
14        indirectly, that applicant;
15        (2) the applicant's facilities or proposed facilities
16    for conducting horse racing;
17        (3) the total revenue without regard to Section 32.1 to
18    be derived by the State and horsemen from the applicant's
19    conducting a race meeting;
20        (4) the applicant's good faith affirmative action plan
21    to recruit, train, and upgrade minorities in all employment
22    classifications;
23        (5) the applicant's financial ability to purchase and
24    maintain adequate liability and casualty insurance;
25        (6) the applicant's proposed and prior year's
26    promotional and marketing activities and expenditures of

 

 

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1    the applicant associated with those activities;
2        (7) an agreement, if any, among organization licensees
3    as provided in subsection (b) of Section 21 of this Act;
4    and
5        (8) the extent to which the applicant exceeds or meets
6    other standards for the issuance of an organization license
7    that the Board shall adopt by rule.
8    In granting organization licenses and allocating dates for
9horse race meetings, the Board shall have discretion to
10determine an overall schedule, including required simulcasts
11of Illinois races by host tracks that will, in its judgment, be
12conducive to the best interests of the public and the sport of
13horse racing.
14    (e-10) The Illinois Administrative Procedure Act shall
15apply to administrative procedures of the Board under this Act
16for the granting of an organization license, except that (1)
17notwithstanding the provisions of subsection (b) of Section
1810-40 of the Illinois Administrative Procedure Act regarding
19cross-examination, the Board may prescribe rules limiting the
20right of an applicant or participant in any proceeding to award
21an organization license to conduct cross-examination of
22witnesses at that proceeding where that cross-examination
23would unduly obstruct the timely award of an organization
24license under subsection (e) of Section 20 of this Act; (2) the
25provisions of Section 10-45 of the Illinois Administrative
26Procedure Act regarding proposals for decision are excluded

 

 

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1under this Act; (3) notwithstanding the provisions of
2subsection (a) of Section 10-60 of the Illinois Administrative
3Procedure Act regarding ex parte communications, the Board may
4prescribe rules allowing ex parte communications with
5applicants or participants in a proceeding to award an
6organization license where conducting those communications
7would be in the best interest of racing, provided all those
8communications are made part of the record of that proceeding
9pursuant to subsection (c) of Section 10-60 of the Illinois
10Administrative Procedure Act; (4) the provisions of Section 14a
11of this Act and the rules of the Board promulgated under that
12Section shall apply instead of the provisions of Article 10 of
13the Illinois Administrative Procedure Act regarding
14administrative law judges; and (5) the provisions of subsection
15(d) of Section 10-65 of the Illinois Administrative Procedure
16Act that prevent summary suspension of a license pending
17revocation or other action shall not apply.
18    (f) The Board may allot racing dates to an organization
19licensee for more than one calendar year but for no more than 3
20successive calendar years in advance, provided that the Board
21shall review such allotment for more than one calendar year
22prior to each year for which such allotment has been made. The
23granting of an organization license to a person constitutes a
24privilege to conduct a horse race meeting under the provisions
25of this Act, and no person granted an organization license
26shall be deemed to have a vested interest, property right, or

 

 

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1future expectation to receive an organization license in any
2subsequent year as a result of the granting of an organization
3license. Organization licenses shall be subject to revocation
4if the organization licensee has violated any provision of this
5Act or the rules and regulations promulgated under this Act or
6has been convicted of a crime or has failed to disclose or has
7stated falsely any information called for in the application
8for an organization license. Any organization license
9revocation proceeding shall be in accordance with Section 16
10regarding suspension and revocation of occupation licenses.
11    (f-5) If, (i) an applicant does not file an acceptance of
12the racing dates awarded by the Board as required under part
13(1) of subsection (h) of this Section 20, or (ii) an
14organization licensee has its license suspended or revoked
15under this Act, the Board, upon conducting an emergency hearing
16as provided for in this Act, may reaward on an emergency basis
17pursuant to rules established by the Board, racing dates not
18accepted or the racing dates associated with any suspension or
19revocation period to one or more organization licensees, new
20applicants, or any combination thereof, upon terms and
21conditions that the Board determines are in the best interest
22of racing, provided, the organization licensees or new
23applicants receiving the awarded racing dates file an
24acceptance of those reawarded racing dates as required under
25paragraph (1) of subsection (h) of this Section 20 and comply
26with the other provisions of this Act. The Illinois

 

 

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1Administrative Procedure Act shall not apply to the
2administrative procedures of the Board in conducting the
3emergency hearing and the reallocation of racing dates on an
4emergency basis.
5    (g) (Blank).
6    (h) The Board shall send the applicant a copy of its
7formally executed order by certified mail addressed to the
8applicant at the address stated in his application, which
9notice shall be mailed within 5 days of the date the formal
10order is executed.
11    Each applicant notified shall, within 10 days after receipt
12of the final executed order of the Board awarding racing dates:
13        (1) file with the Board an acceptance of such award in
14    the form prescribed by the Board;
15        (2) pay to the Board an additional amount equal to $110
16    for each racing date awarded; and
17        (3) file with the Board the bonds required in Sections
18    21 and 25 at least 20 days prior to the first day of each
19    race meeting.
20Upon compliance with the provisions of paragraphs (1), (2), and
21(3) of this subsection (h), the applicant shall be issued an
22organization license.
23    If any applicant fails to comply with this Section or fails
24to pay the organization license fees herein provided, no
25organization license shall be issued to such applicant.
26(Source: P.A. 97-333, eff. 8-12-11.)
 

 

 

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1    (230 ILCS 5/21)  (from Ch. 8, par. 37-21)
2    Sec. 21. (a) Applications for organization licenses must be
3filed with the Board at a time and place prescribed by the
4rules and regulations of the Board. The Board shall examine the
5applications within 21 days after the date allowed for filing
6with respect to their conformity with this Act and such rules
7and regulations as may be prescribed by the Board. If any
8application does not comply with this Act or the rules and
9regulations prescribed by the Board, such application may be
10rejected and an organization license refused to the applicant,
11or the Board may, within 21 days of the receipt of such
12application, advise the applicant of the deficiencies of the
13application under the Act or the rules and regulations of the
14Board, and require the submittal of an amended application
15within a reasonable time determined by the Board; and upon
16submittal of the amended application by the applicant, the
17Board may consider the application consistent with the process
18described in subsection (e-5) of Section 20 of this Act. If it
19is found to be in compliance with this Act and the rules and
20regulations of the Board, the Board may then issue an
21organization license to such applicant.
22    (b) The Board may exercise discretion in granting racing
23dates to qualified applicants different from those requested by
24the applicants in their applications. However, if all eligible
25applicants for organization licenses whose tracks are located

 

 

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1within 100 miles of each other execute and submit to the Board
2a written agreement among such applicants as to the award of
3racing dates, including where applicable racing programs, for
4up to 3 consecutive years, then subject to annual review of
5each applicant's compliance with Board rules and regulations,
6provisions of this Act and conditions contained in annual dates
7orders issued by the Board, the Board may grant such dates and
8programs to such applicants as so agreed by them if the Board
9determines that the grant of these racing dates is in the best
10interests of racing. The Board shall treat any such agreement
11as the agreement signatories' joint and several application for
12racing dates during the term of the agreement.
13    (c) Where 2 or more applicants propose to conduct horse
14race meetings within 35 miles of each other, as certified to
15the Board under Section 19 (a) (1) of this Act, on conflicting
16dates, the Board may determine and grant the number of racing
17days to be awarded to the several applicants in accordance with
18the provisions of subsection (e-5) of Section 20 of this Act.
19    (d) (Blank).
20    (e) Prior to the issuance of an organization license, the
21applicant shall file with the Board a bond payable to the State
22of Illinois in the sum of $200,000, executed by the applicant
23and a surety company or companies authorized to do business in
24this State, and conditioned upon the payment by the
25organization licensee of all taxes due under Section 27, other
26monies due and payable under this Act, all purses due and

 

 

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1payable, and that the organization licensee will upon
2presentation of the winning ticket or tickets distribute all
3sums due to the patrons of pari-mutuel pools. Beginning on the
4date when any organization licensee begins conducting
5electronic gaming pursuant to an electronic gaming license
6issued under the Illinois Gambling Act, the amount of the bond
7required under this subsection (e) shall be $500,000.
8    (f) Each organization license shall specify the person to
9whom it is issued, the dates upon which horse racing is
10permitted, and the location, place, track, or enclosure where
11the horse race meeting is to be held.
12    (g) Any person who owns one or more race tracks within the
13State may seek, in its own name, a separate organization
14license for each race track.
15    (h) All racing conducted under such organization license is
16subject to this Act and to the rules and regulations from time
17to time prescribed by the Board, and every such organization
18license issued by the Board shall contain a recital to that
19effect.
20    (i) Each such organization licensee may provide that at
21least one race per day may be devoted to the racing of quarter
22horses, appaloosas, arabians, or paints.
23    (j) In acting on applications for organization licenses,
24the Board shall give weight to an organization license which
25has implemented a good faith affirmative action effort to
26recruit, train and upgrade minorities in all classifications

 

 

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1within the organization license.
2(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
 
3    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
4    Sec. 24. (a) No license shall be issued to or held by an
5organization licensee unless all of its officers, directors,
6and holders of ownership interests of at least 5% are first
7approved by the Board. The Board shall not give approval of an
8organization license application to any person who has been
9convicted of or is under an indictment for a crime of moral
10turpitude or has violated any provision of the racing law of
11this State or any rules of the Board.
12    (b) An organization licensee must notify the Board within
1310 days of any change in the holders of a direct or indirect
14interest in the ownership of the organization licensee. The
15Board may, after hearing, revoke the organization license of
16any person who registers on its books or knowingly permits a
17direct or indirect interest in the ownership of that person
18without notifying the Board of the name of the holder in
19interest within this period.
20    (c) In addition to the provisions of subsection (a) of this
21Section, no person shall be granted an organization license if
22any public official of the State or member of his or her family
23holds any ownership or financial interest, directly or
24indirectly, in the person.
25    (d) No person which has been granted an organization

 

 

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1license to hold a race meeting shall give to any public
2official or member of his family, directly or indirectly, for
3or without consideration, any interest in the person. The Board
4shall, after hearing, revoke the organization license granted
5to a person which has violated this subsection.
6    (e) (Blank).
7    (f) No organization licensee or concessionaire or officer,
8director or holder or controller of 5% or more legal or
9beneficial interest in any organization licensee or concession
10shall make any sort of gift or contribution that is prohibited
11under Article 10 of the State Officials and Employees Ethics
12Act of any kind or pay or give any money or other thing of value
13to any person who is a public official, or a candidate or
14nominee for public office if that payment or gift is prohibited
15under Article 10 of the State Officials and Employees Ethics
16Act.
17(Source: P.A. 89-16, eff. 5-30-95.)
 
18    (230 ILCS 5/25)  (from Ch. 8, par. 37-25)
19    Sec. 25. Admission charge; bond; fine.
20    (a) There shall be paid to the Board at such time or times
21as it shall prescribe, the sum of fifteen cents (15¢) for each
22person entering the grounds or enclosure of each organization
23licensee and inter-track wagering licensee upon a ticket of
24admission except as provided in subsection (g) of Section 27 of
25this Act. If tickets are issued for more than one day then the

 

 

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1sum of fifteen cents (15¢) shall be paid for each person using
2such ticket on each day that the same shall be used. Provided,
3however, that no charge shall be made on tickets of admission
4issued to and in the name of directors, officers, agents or
5employees of the organization licensee, or inter-track
6wagering licensee, or to owners, trainers, jockeys, drivers and
7their employees or to any person or persons entering the
8grounds or enclosure for the transaction of business in
9connection with such race meeting. The organization licensee or
10inter-track wagering licensee may, if it desires, collect such
11amount from each ticket holder in addition to the amount or
12amounts charged for such ticket of admission. Beginning on the
13date when any organization licensee begins conducting
14electronic gaming pursuant to an electronic gaming license
15issued under the Illinois Gambling Act, the admission charge
16imposed by this subsection (a) shall be 40 cents for each
17person entering the grounds or enclosure of each organization
18licensee and inter-track wagering licensee upon a ticket of
19admission, and if such tickets are issued for more than one
20day, 40 cents shall be paid for each person using such ticket
21on each day that the same shall be used.
22    (b) Accurate records and books shall at all times be kept
23and maintained by the organization licensees and inter-track
24wagering licensees showing the admission tickets issued and
25used on each racing day and the attendance thereat of each
26horse racing meeting. The Board or its duly authorized

 

 

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1representative or representatives shall at all reasonable
2times have access to the admission records of any organization
3licensee and inter-track wagering licensee for the purpose of
4examining and checking the same and ascertaining whether or not
5the proper amount has been or is being paid the State of
6Illinois as herein provided. The Board shall also require,
7before issuing any license, that the licensee shall execute and
8deliver to it a bond, payable to the State of Illinois, in such
9sum as it shall determine, not, however, in excess of fifty
10thousand dollars ($50,000), with a surety or sureties to be
11approved by it, conditioned for the payment of all sums due and
12payable or collected by it under this Section upon admission
13fees received for any particular racing meetings. The Board may
14also from time to time require sworn statements of the number
15or numbers of such admissions and may prescribe blanks upon
16which such reports shall be made. Any organization licensee or
17inter-track wagering licensee failing or refusing to pay the
18amount found to be due as herein provided, shall be deemed
19guilty of a business offense and upon conviction shall be
20punished by a fine of not more than five thousand dollars
21($5,000) in addition to the amount due from such organization
22licensee or inter-track wagering licensee as herein provided.
23All fines paid into court by an organization licensee or
24inter-track wagering licensee found guilty of violating this
25Section shall be transmitted and paid over by the clerk of the
26court to the Board. Beginning on the date when any organization

 

 

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1licensee begins conducting electronic gaming pursuant to an
2electronic gaming license issued under the Illinois Gambling
3Act, any fine imposed pursuant to this subsection (b) shall not
4exceed $10,000.
5(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
6    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
7    Sec. 26. Wagering.
8    (a) Any licensee may conduct and supervise the pari-mutuel
9system of wagering, as defined in Section 3.12 of this Act, on
10horse races conducted by an Illinois organization licensee or
11conducted at a racetrack located in another state or country
12and televised in Illinois in accordance with subsection (g) of
13Section 26 of this Act. Subject to the prior consent of the
14Board, licensees may supplement any pari-mutuel pool in order
15to guarantee a minimum distribution. Such pari-mutuel method of
16wagering shall not, under any circumstances if conducted under
17the provisions of this Act, be held or construed to be
18unlawful, other statutes of this State to the contrary
19notwithstanding. Subject to rules for advance wagering
20promulgated by the Board, any licensee may accept wagers in
21advance of the day of the race wagered upon occurs.
22    (b) Except for those gaming activities for which a license
23is obtained and authorized under the Illinois Lottery Law, the
24Charitable Games Act, the Raffles and Poker Runs Act, or the
25Illinois Gambling Act, no No other method of betting, pool

 

 

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1making, wagering or gambling shall be used or permitted by the
2licensee. Each licensee may retain, subject to the payment of
3all applicable taxes and purses, an amount not to exceed 17% of
4all money wagered under subsection (a) of this Section, except
5as may otherwise be permitted under this Act.
6    (b-5) An individual may place a wager under the pari-mutuel
7system from any licensed location authorized under this Act
8provided that wager is electronically recorded in the manner
9described in Section 3.12 of this Act. Any wager made
10electronically by an individual while physically on the
11premises of a licensee shall be deemed to have been made at the
12premises of that licensee.
13    (c) Until January 1, 2000, the sum held by any licensee for
14payment of outstanding pari-mutuel tickets, if unclaimed prior
15to December 31 of the next year, shall be retained by the
16licensee for payment of such tickets until that date. Within 10
17days thereafter, the balance of such sum remaining unclaimed,
18less any uncashed supplements contributed by such licensee for
19the purpose of guaranteeing minimum distributions of any
20pari-mutuel pool, shall be paid to the Illinois Veterans'
21Rehabilitation Fund of the State treasury, except as provided
22in subsection (g) of Section 27 of this Act.
23    (c-5) Beginning January 1, 2000, the sum held by any
24licensee for payment of outstanding pari-mutuel tickets, if
25unclaimed prior to December 31 of the next year, shall be
26retained by the licensee for payment of such tickets until that

 

 

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1date. Within 10 days thereafter, the balance of such sum
2remaining unclaimed, less any uncashed supplements contributed
3by such licensee for the purpose of guaranteeing minimum
4distributions of any pari-mutuel pool, shall be evenly
5distributed to the purse account of the organization licensee
6and the organization licensee.
7    (d) A pari-mutuel ticket shall be honored until December 31
8of the next calendar year, and the licensee shall pay the same
9and may charge the amount thereof against unpaid money
10similarly accumulated on account of pari-mutuel tickets not
11presented for payment.
12    (e) No licensee shall knowingly permit any minor, other
13than an employee of such licensee or an owner, trainer, jockey,
14driver, or employee thereof, to be admitted during a racing
15program unless accompanied by a parent or guardian, or any
16minor to be a patron of the pari-mutuel system of wagering
17conducted or supervised by it. The admission of any
18unaccompanied minor, other than an employee of the licensee or
19an owner, trainer, jockey, driver, or employee thereof at a
20race track is a Class C misdemeanor.
21    (f) Notwithstanding the other provisions of this Act, an
22organization licensee may contract with an entity in another
23state or country to permit any legal wagering entity in another
24state or country to accept wagers solely within such other
25state or country on races conducted by the organization
26licensee in this State. Beginning January 1, 2000, these wagers

 

 

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

 

 

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1that the simulcast program is clearly adverse to the integrity
2of racing. The host track simulcast program shall include the
3signal of live racing of all organization licensees. All
4non-host licensees and advance deposit wagering licensees
5shall carry the signal of and accept wagers on live racing of
6all organization licensees. Advance deposit wagering licensees
7shall not be permitted to accept out-of-state wagers on any
8Illinois signal provided pursuant to this Section without the
9approval and consent of the organization licensee providing the
10signal. For one year after August 15, 2014 (the effective date
11of Public Act 98-968) this amendatory Act of the 98th General
12Assembly, non-host licensees may carry the host track simulcast
13program and shall accept wagers on all races included as part
14of the simulcast program of horse races conducted at race
15tracks located within North America upon which wagering is
16permitted. For a period of one year after August 15, 2014 (the
17effective date of Public Act 98-968) this amendatory Act of the
1898th General Assembly, on horse races conducted at race tracks
19located outside of North America, non-host licensees may accept
20wagers on all races included as part of the simulcast program
21upon which wagering is permitted. Beginning August 15, 2015
22(one year after the effective date of Public Act 98-968) this
23amendatory Act of the 98th General Assembly, non-host licensees
24may carry the host track simulcast program and shall accept
25wagers on all races included as part of the simulcast program
26upon which wagering is permitted. All organization licensees

 

 

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

 

 

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1wagering facilities as a convenience to customers. The advance
2deposit wagering licensee shall not charge or collect any fee
3from purses for the placement of the advance deposit wagering
4terminals. The costs and expenses of the host track and
5non-host licensees associated with interstate simulcast
6wagering, other than the interstate commission fee, shall be
7borne by the host track and all non-host licensees incurring
8these costs. The interstate commission fee shall not exceed 5%
9of Illinois handle on the interstate simulcast race or races
10without prior approval of the Board. The Board shall promulgate
11rules under which it may permit interstate commission fees in
12excess of 5%. The interstate commission fee and other fees
13charged by the sending racetrack, including, but not limited
14to, satellite decoder fees, shall be uniformly applied to the
15host track and all non-host licensees.
16    Notwithstanding any other provision of this Act, through
17December 31, 2018, an organization licensee, with the consent
18of the horsemen association representing the largest number of
19owners, trainers, jockeys, or standardbred drivers who race
20horses at that organization licensee's racing meeting, may
21maintain a system whereby advance deposit wagering may take
22place or an organization licensee, with the consent of the
23horsemen association representing the largest number of
24owners, trainers, jockeys, or standardbred drivers who race
25horses at that organization licensee's racing meeting, may
26contract with another person to carry out a system of advance

 

 

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1deposit wagering. Such consent may not be unreasonably
2withheld. Only with respect to an appeal to the Board that
3consent for an organization licensee that maintains its own
4advance deposit wagering system is being unreasonably
5withheld, the Board shall issue a final order within 30 days
6after initiation of the appeal, and the organization licensee's
7advance deposit wagering system may remain operational during
8that 30-day period. The actions of any organization licensee
9who conducts advance deposit wagering or any person who has a
10contract with an organization licensee to conduct advance
11deposit wagering who conducts advance deposit wagering on or
12after January 1, 2013 and prior to June 7, 2013 (the effective
13date of Public Act 98-18) this amendatory Act of the 98th
14General Assembly taken in reliance on the changes made to this
15subsection (g) by Public Act 98-18 this amendatory Act of the
1698th General Assembly are hereby validated, provided payment of
17all applicable pari-mutuel taxes are remitted to the Board. All
18advance deposit wagers placed from within Illinois must be
19placed through a Board-approved advance deposit wagering
20licensee; no other entity may accept an advance deposit wager
21from a person within Illinois. All advance deposit wagering is
22subject to any rules adopted by the Board. The Board may adopt
23rules necessary to regulate advance deposit wagering through
24the use of emergency rulemaking in accordance with Section 5-45
25of the Illinois Administrative Procedure Act. The General
26Assembly finds that the adoption of rules to regulate advance

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    year beginning on or after January 1, 2002, all moneys
2    derived by that racetrack from simulcast wagering and
3    inter-track wagering that (1) are to be used for purses and
4    (2) are generated between the hours of 6:30 p.m. and 6:30
5    a.m. during that calendar year shall be paid as follows:
6            (A) If the licensee that conducts horse racing at
7        that racetrack requests from the Board at least as many
8        racing dates as were conducted in calendar year 2000,
9        80% shall be paid to its thoroughbred purse account;
10        and
11            (B) Twenty percent shall be deposited into the
12        Illinois Colt Stakes Purse Distribution Fund and shall
13        be paid to purses for standardbred races for Illinois
14        conceived and foaled horses conducted at any county
15        fairgrounds. The moneys deposited into the Fund
16        pursuant to this subparagraph (B) shall be deposited
17        within 2 weeks after the day they were generated, shall
18        be in addition to and not in lieu of any other moneys
19        paid to standardbred purses under this Act, and shall
20        not be commingled with other moneys paid into that
21        Fund. The moneys deposited pursuant to this
22        subparagraph (B) shall be allocated as provided by the
23        Department of Agriculture, with the advice and
24        assistance of the Illinois Standardbred Breeders Fund
25        Advisory Board.
26        (7.2) Notwithstanding any other provision of this Act

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0007 Engrossed- 246 -LRB100 06307 AMC 16345 b

1    subsequent to the first year in which the organization
2    licensee begins to receive funds from electronic gaming.
3    (h) The Board may approve and license the conduct of
4inter-track wagering and simulcast wagering by inter-track
5wagering licensees and inter-track wagering location licensees
6subject to the following terms and conditions:
7        (1) Any person licensed to conduct a race meeting (i)
8    at a track where 60 or more days of racing were conducted
9    during the immediately preceding calendar year or where
10    over the 5 immediately preceding calendar years an average
11    of 30 or more days of racing were conducted annually may be
12    issued an inter-track wagering license; (ii) at a track
13    located in a county that is bounded by the Mississippi
14    River, which has a population of less than 150,000
15    according to the 1990 decennial census, and an average of
16    at least 60 days of racing per year between 1985 and 1993
17    may be issued an inter-track wagering license; or (iii) at
18    a track awarded standardbred racing dates in 2018 and
19    thereafter; or (iv) at a track located in Madison County
20    that conducted at least 100 days of live racing during the
21    immediately preceding calendar year may be issued an
22    inter-track wagering license, unless a lesser schedule of
23    live racing is the result of (A) weather, unsafe track
24    conditions, or other acts of God; (B) an agreement between
25    the organization licensee and the associations
26    representing the largest number of owners, trainers,

 

 

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1    jockeys, or standardbred drivers who race horses at that
2    organization licensee's racing meeting; or (C) a finding by
3    the Board of extraordinary circumstances and that it was in
4    the best interest of the public and the sport to conduct
5    fewer than 100 days of live racing. Any such person having
6    operating control of the racing facility may receive
7    inter-track wagering location licenses. An eligible race
8    track located in a county that has a population of more
9    than 230,000 and that is bounded by the Mississippi River
10    may establish up to 9 inter-track wagering locations, and
11    an eligible race track located in Stickney Township in Cook
12    County may establish up to 16 inter-track wagering
13    locations, and an eligible race track located in Palatine
14    Township in Cook County may establish up to 18 inter-track
15    wagering locations. An eligible race track conducting
16    standardbred racing may have up to 9 inter-track wagering
17    locations. An application for said license shall be filed
18    with the Board prior to such dates as may be fixed by the
19    Board. With an application for an inter-track wagering
20    location license there shall be delivered to the Board a
21    certified check or bank draft payable to the order of the
22    Board for an amount equal to $500. The application shall be
23    on forms prescribed and furnished by the Board. The
24    application shall comply with all other rules, regulations
25    and conditions imposed by the Board in connection
26    therewith.

 

 

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

 

 

SB0007 Engrossed- 249 -LRB100 06307 AMC 16345 b

1    issued, the dates on which such wagering is permitted, and
2    the track or location where the wagering is to be
3    conducted.
4        (6) All wagering under such license is subject to this
5    Act and to the rules and regulations from time to time
6    prescribed by the Board, and every such license issued by
7    the Board shall contain a recital to that effect.
8        (7) An inter-track wagering licensee or inter-track
9    wagering location licensee may accept wagers at the track
10    or location where it is licensed, or as otherwise provided
11    under this Act.
12        (8) Inter-track wagering or simulcast wagering shall
13    not be conducted at any track less than 4 5 miles from a
14    track at which a racing meeting is in progress.
15        (8.1) Inter-track wagering location licensees who
16    derive their licenses from a particular organization
17    licensee shall conduct inter-track wagering and simulcast
18    wagering only at locations that are within 160 miles of
19    that race track where the particular organization licensee
20    is licensed to conduct racing. However, inter-track
21    wagering and simulcast wagering shall not be conducted by
22    those licensees at any location within 5 miles of any race
23    track at which a horse race meeting has been licensed in
24    the current year, unless the person having operating
25    control of such race track has given its written consent to
26    such inter-track wagering location licensees, which

 

 

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

 

 

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

 

 

SB0007 Engrossed- 252 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

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

 

 

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1    purses at the operating host track; (iii) until January 1,
2    2000, except as provided in subsection (g) of Section 27 of
3    this Act, 1% of the pari-mutuel handle wagered on
4    inter-track wagering and simulcast wagering at each
5    inter-track wagering location licensee facility to the
6    Horse Racing Tax Allocation Fund, provided that, to the
7    extent the total amount collected and distributed to the
8    Horse Racing Tax Allocation Fund under this subsection (h)
9    during any calendar year exceeds the amount collected and
10    distributed to the Horse Racing Tax Allocation Fund during
11    calendar year 1994, that excess amount shall be
12    redistributed (I) to all inter-track wagering location
13    licensees, based on each licensee's pro-rata share of the
14    total handle from inter-track wagering and simulcast
15    wagering for all inter-track wagering location licensees
16    during the calendar year in which this provision is
17    applicable; then (II) the amounts redistributed to each
18    inter-track wagering location licensee as described in
19    subpart (I) shall be further redistributed as provided in
20    subparagraph (B) of paragraph (5) of subsection (g) of this
21    Section 26 provided first, that the shares of those
22    amounts, which are to be redistributed to the host track or
23    to purses at the host track under subparagraph (B) of
24    paragraph (5) of subsection (g) of this Section 26 shall be
25    redistributed based on each host track's pro rata share of
26    the total inter-track wagering and simulcast wagering

 

 

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

 

 

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1    an inter-track intertrack wagering location licensee that
2    accepts wagers on races conducted by an organization
3    licensee that conducts a race meet in a county with a
4    population in excess of 230,000 and that borders the
5    Mississippi River shall not divide any remaining retention
6    with the organization licensee. Notwithstanding the
7    provisions of clauses (ii) and (iv) of this paragraph, in
8    the case of the additional inter-track wagering location
9    licenses authorized under paragraph (1) of this subsection
10    (h) by Public Act 87-110 this amendatory Act of 1991, those
11    licensees shall pay the following amounts as purses: during
12    the first 12 months the licensee is in operation, 5.25% of
13    the pari-mutuel handle wagered at the location on races;
14    during the second 12 months, 5.25%; during the third 12
15    months, 5.75%; during the fourth 12 months, 6.25%; and
16    during the fifth 12 months and thereafter, 6.75%. The
17    following amounts shall be retained by the licensee to
18    satisfy all costs and expenses of conducting its wagering:
19    during the first 12 months the licensee is in operation,
20    8.25% of the pari-mutuel handle wagered at the location;
21    during the second 12 months, 8.25%; during the third 12
22    months, 7.75%; during the fourth 12 months, 7.25%; and
23    during the fifth 12 months and thereafter, 6.75%. For
24    additional inter-track intertrack wagering location
25    licensees authorized under Public Act 89-16 this
26    amendatory Act of 1995, purses for the first 12 months the

 

 

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1    licensee is in operation shall be 5.75% of the pari-mutuel
2    wagered at the location, purses for the second 12 months
3    the licensee is in operation shall be 6.25%, and purses
4    thereafter shall be 6.75%. For additional inter-track
5    intertrack location licensees authorized under Public Act
6    89-16 this amendatory Act of 1995, the licensee shall be
7    allowed to retain to satisfy all costs and expenses: 7.75%
8    of the pari-mutuel handle wagered at the location during
9    its first 12 months of operation, 7.25% during its second
10    12 months of operation, and 6.75% thereafter.
11        (C) There is hereby created the Horse Racing Tax
12    Allocation Fund which shall remain in existence until
13    December 31, 1999. Moneys remaining in the Fund after
14    December 31, 1999 shall be paid into the General Revenue
15    Fund. Until January 1, 2000, all monies paid into the Horse
16    Racing Tax Allocation Fund pursuant to this paragraph (11)
17    by inter-track wagering location licensees located in park
18    districts of 500,000 population or less, or in a
19    municipality that is not included within any park district
20    but is included within a conservation district and is the
21    county seat of a county that (i) is contiguous to the state
22    of Indiana and (ii) has a 1990 population of 88,257
23    according to the United States Bureau of the Census, and
24    operating on May 1, 1994 shall be allocated by
25    appropriation as follows:
26            Two-sevenths to the Department of Agriculture.

 

 

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1        Fifty percent of this two-sevenths shall be used to
2        promote the Illinois horse racing and breeding
3        industry, and shall be distributed by the Department of
4        Agriculture upon the advice of a 9-member committee
5        appointed by the Governor consisting of the following
6        members: the Director of Agriculture, who shall serve
7        as chairman; 2 representatives of organization
8        licensees conducting thoroughbred race meetings in
9        this State, recommended by those licensees; 2
10        representatives of organization licensees conducting
11        standardbred race meetings in this State, recommended
12        by those licensees; a representative of the Illinois
13        Thoroughbred Breeders and Owners Foundation,
14        recommended by that Foundation; a representative of
15        the Illinois Standardbred Owners and Breeders
16        Association, recommended by that Association; a
17        representative of the Horsemen's Benevolent and
18        Protective Association or any successor organization
19        thereto established in Illinois comprised of the
20        largest number of owners and trainers, recommended by
21        that Association or that successor organization; and a
22        representative of the Illinois Harness Horsemen's
23        Association, recommended by that Association.
24        Committee members shall serve for terms of 2 years,
25        commencing January 1 of each even-numbered year. If a
26        representative of any of the above-named entities has

 

 

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1        not been recommended by January 1 of any even-numbered
2        year, the Governor shall appoint a committee member to
3        fill that position. Committee members shall receive no
4        compensation for their services as members but shall be
5        reimbursed for all actual and necessary expenses and
6        disbursements incurred in the performance of their
7        official duties. The remaining 50% of this
8        two-sevenths shall be distributed to county fairs for
9        premiums and rehabilitation as set forth in the
10        Agricultural Fair Act;
11            Four-sevenths to park districts or municipalities
12        that do not have a park district of 500,000 population
13        or less for museum purposes (if an inter-track wagering
14        location licensee is located in such a park district)
15        or to conservation districts for museum purposes (if an
16        inter-track wagering location licensee is located in a
17        municipality that is not included within any park
18        district but is included within a conservation
19        district and is the county seat of a county that (i) is
20        contiguous to the state of Indiana and (ii) has a 1990
21        population of 88,257 according to the United States
22        Bureau of the Census, except that if the conservation
23        district does not maintain a museum, the monies shall
24        be allocated equally between the county and the
25        municipality in which the inter-track wagering
26        location licensee is located for general purposes) or

 

 

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

 

 

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1        where the inter-track wagering location is located, to
2        be used for general purposes; and
3            One-seventh to the Agricultural Premium Fund to be
4        used for distribution to agricultural home economics
5        extension councils in accordance with "An Act in
6        relation to additional support and finances for the
7        Agricultural and Home Economic Extension Councils in
8        the several counties of this State and making an
9        appropriation therefor", approved July 24, 1967.
10        Until January 1, 2000, all other monies paid into the
11    Horse Racing Tax Allocation Fund pursuant to this paragraph
12    (11) shall be allocated by appropriation as follows:
13            Two-sevenths to the Department of Agriculture.
14        Fifty percent of this two-sevenths shall be used to
15        promote the Illinois horse racing and breeding
16        industry, and shall be distributed by the Department of
17        Agriculture upon the advice of a 9-member committee
18        appointed by the Governor consisting of the following
19        members: the Director of Agriculture, who shall serve
20        as chairman; 2 representatives of organization
21        licensees conducting thoroughbred race meetings in
22        this State, recommended by those licensees; 2
23        representatives of organization licensees conducting
24        standardbred race meetings in this State, recommended
25        by those licensees; a representative of the Illinois
26        Thoroughbred Breeders and Owners Foundation,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        delegates to execute any of the powers granted to it
2        under this Section for the purpose of administering
3        this wagering and any rules and regulations
4        promulgated in accordance with this Act.
5            (F) The Board shall name and appoint a State
6        director of this wagering who shall be a representative
7        of the Board and whose duty it shall be to supervise
8        the conduct of inter-track wagering as may be provided
9        for by the rules and regulations of the Board; such
10        rules and regulation shall specify the method of
11        appointment and the Director's powers, authority and
12        duties.
13            (G) The Board is vested with the power to impose
14        civil penalties of up to $5,000 against individuals and
15        up to $10,000 against licensees for each violation of
16        any provision of this Act relating to the conduct of
17        this wagering, any rules adopted by the Board, any
18        order of the Board or any other action which in the
19        Board's discretion, is a detriment or impediment to
20        such wagering.
21        (13) The Department of Agriculture may enter into
22    agreements with licensees authorizing such licensees to
23    conduct inter-track wagering on races to be held at the
24    licensed race meetings conducted by the Department of
25    Agriculture. Such agreement shall specify the races of the
26    Department of Agriculture's licensed race meeting upon

 

 

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1    which the licensees will conduct wagering. In the event
2    that a licensee conducts inter-track pari-mutuel wagering
3    on races from the Illinois State Fair or DuQuoin State Fair
4    which are in addition to the licensee's previously approved
5    racing program, those races shall be considered a separate
6    racing day for the purpose of determining the daily handle
7    and computing the privilege or pari-mutuel tax on that
8    daily handle as provided in Sections 27 and 27.1. Such
9    agreements shall be approved by the Board before such
10    wagering may be conducted. In determining whether to grant
11    approval, the Board shall give due consideration to the
12    best interests of the public and of horse racing. The
13    provisions of paragraphs (1), (8), (8.1), and (8.2) of
14    subsection (h) of this Section which are not specified in
15    this paragraph (13) shall not apply to licensed race
16    meetings conducted by the Department of Agriculture at the
17    Illinois State Fair in Sangamon County or the DuQuoin State
18    Fair in Perry County, or to any wagering conducted on those
19    race meetings.
20        (14) An inter-track wagering location license
21    authorized by the Board in 2016 that is owned and operated
22    by a race track in Rock Island County shall be transferred
23    to a commonly owned race track in Cook County on August 12,
24    2016 (the effective date of Public Act 99-757) this
25    amendatory Act of the 99th General Assembly. The licensee
26    shall retain its status in relation to purse distribution

 

 

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1    under paragraph (11) of this subsection (h) following the
2    transfer to the new entity. The pari-mutuel tax credit
3    under Section 32.1 shall not be applied toward any
4    pari-mutuel tax obligation of the inter-track wagering
5    location licensee of the license that is transferred under
6    this paragraph (14).
7    (i) Notwithstanding the other provisions of this Act, the
8conduct of wagering at wagering facilities is authorized on all
9days, except as limited by subsection (b) of Section 19 of this
10Act.
11(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968,
12eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
13revised 9-14-16.)
 
14    (230 ILCS 5/26.8)
15    Sec. 26.8. Beginning on February 1, 2014 and through
16December 31, 2018, each wagering licensee may impose a
17surcharge of up to 0.5% on winning wagers and winnings from
18wagers. The surcharge shall be deducted from winnings prior to
19payout. All amounts collected from the imposition of this
20surcharge shall be evenly distributed to the organization
21licensee and the purse account of the organization licensee
22with which the licensee is affiliated. The amounts distributed
23under this Section shall be in addition to the amounts paid
24pursuant to paragraph (10) of subsection (h) of Section 26,
25Section 26.3, Section 26.4, Section 26.5, and Section 26.7.

 

 

SB0007 Engrossed- 270 -LRB100 06307 AMC 16345 b

1(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
2    (230 ILCS 5/26.9)
3    Sec. 26.9. Beginning on February 1, 2014 and through
4December 31, 2018, in addition to the surcharge imposed in
5Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
6licensee shall impose a surcharge of 0.2% on winning wagers and
7winnings from wagers. The surcharge shall be deducted from
8winnings prior to payout. All amounts collected from the
9surcharges imposed under this Section shall be remitted to the
10Board. From amounts collected under this Section, the Board
11shall deposit an amount not to exceed $100,000 annually into
12the Quarter Horse Purse Fund and all remaining amounts into the
13Horse Racing Fund.
14(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
15    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
16    Sec. 27. (a) In addition to the organization license fee
17provided by this Act, until January 1, 2000, a graduated
18privilege tax is hereby imposed for conducting the pari-mutuel
19system of wagering permitted under this Act. Until January 1,
202000, except as provided in subsection (g) of Section 27 of
21this Act, all of the breakage of each racing day held by any
22licensee in the State shall be paid to the State. Until January
231, 2000, such daily graduated privilege tax shall be paid by
24the licensee from the amount permitted to be retained under

 

 

SB0007 Engrossed- 271 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 272 -LRB100 06307 AMC 16345 b

1to the pari-mutuel tax imposed on advance deposit wagering
2pursuant to this subsection (a-5), beginning on August 24, 2012
3(the effective date of Public Act 97-1060) and through December
431, 2018, an additional pari-mutuel tax at the rate of 0.25%
5shall be imposed on advance deposit wagering. Until August 25,
62012, the additional 0.25% pari-mutuel tax imposed on advance
7deposit wagering by Public Act 96-972 shall be deposited into
8the Quarter Horse Purse Fund, which shall be created as a
9non-appropriated trust fund administered by the Board for
10grants to thoroughbred organization licensees for payment of
11purses for quarter horse races conducted by the organization
12licensee. Beginning on August 26, 2012, the additional 0.25%
13pari-mutuel tax imposed on advance deposit wagering shall be
14deposited into the Standardbred Purse Fund, which shall be
15created as a non-appropriated trust fund administered by the
16Board, for grants to the standardbred organization licensees
17for payment of purses for standardbred horse races conducted by
18the organization licensee. Thoroughbred organization licensees
19may petition the Board to conduct quarter horse racing and
20receive purse grants from the Quarter Horse Purse Fund. The
21Board shall have complete discretion in distributing the
22Quarter Horse Purse Fund to the petitioning organization
23licensees. Beginning on July 26, 2010 (the effective date of
24Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
25the daily pari-mutuel handle is imposed at a pari-mutuel
26facility whose license is derived from a track located in a

 

 

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

 

 

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1racing day upon which it is assessed or within such other time
2as the Board prescribes.
3    (b) On or before December 31, 1999, in the event that any
4organization licensee conducts 2 separate programs of races on
5any day, each such program shall be considered a separate
6racing day for purposes of determining the daily handle and
7computing the privilege tax on such daily handle as provided in
8subsection (a) of this Section.
9    (c) Licensees shall at all times keep accurate books and
10records of all monies wagered on each day of a race meeting and
11of the taxes paid to the Department of Revenue under the
12provisions of this Section. The Board or its duly authorized
13representative or representatives shall at all reasonable
14times have access to such records for the purpose of examining
15and checking the same and ascertaining whether the proper
16amount of taxes is being paid as provided. The Board shall
17require verified reports and a statement of the total of all
18monies wagered daily at each wagering facility upon which the
19taxes are assessed and may prescribe forms upon which such
20reports and statement shall be made.
21    (d) Before a license is issued or re-issued, the licensee
22shall post a bond in the sum of $500,000 to the State of
23Illinois. The bond shall be used to guarantee that the licensee
24faithfully makes the payments, keeps the books and records and
25makes reports, and conducts games of chance in conformity with
26this Act and the rules adopted by the Board. The bond shall not

 

 

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1be canceled by a surety on less than 30 days' notice in writing
2to the Board. If a bond is canceled and the licensee fails to
3file a new bond with the Board in the required amount on or
4before the effective date of cancellation, the licensee's
5license shall be revoked. The total and aggregate liability of
6the surety on the bond is limited to the amount specified in
7the bond. Any licensee failing or refusing to pay the amount of
8any tax due under this Section shall be guilty of a business
9offense and upon conviction shall be fined not more than $5,000
10in addition to the amount found due as tax under this Section.
11Each day's violation shall constitute a separate offense. All
12fines paid into Court by a licensee hereunder shall be
13transmitted and paid over by the Clerk of the Court to the
14Board.
15    (e) No other license fee, privilege tax, excise tax, or
16racing fee, except as provided in this Act, shall be assessed
17or collected from any such licensee by the State.
18    (f) No other license fee, privilege tax, excise tax or
19racing fee shall be assessed or collected from any such
20licensee by units of local government except as provided in
21paragraph 10.1 of subsection (h) and subsection (f) of Section
2226 of this Act. However, any municipality that has a Board
23licensed horse race meeting at a race track wholly within its
24corporate boundaries or a township that has a Board licensed
25horse race meeting at a race track wholly within the
26unincorporated area of the township may charge a local

 

 

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

 

 

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

 

 

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1    To the extent the excess amount of taxes and fees to be
2collected and distributed to State and local governmental
3authorities exceeds $11 million, that excess amount shall be
4collected and distributed to State and local authorities as
5provided for under this Act.
6(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
7eff. 8-12-16.)
 
8    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
9    Sec. 30. (a) The General Assembly declares that it is the
10policy of this State to encourage the breeding of thoroughbred
11horses in this State and the ownership of such horses by
12residents of this State in order to provide for: sufficient
13numbers of high quality thoroughbred horses to participate in
14thoroughbred racing meetings in this State, and to establish
15and preserve the agricultural and commercial benefits of such
16breeding and racing industries to the State of Illinois. It is
17the intent of the General Assembly to further this policy by
18the provisions of this Act.
19    (b) Each organization licensee conducting a thoroughbred
20racing meeting pursuant to this Act shall provide at least two
21races each day limited to Illinois conceived and foaled horses
22or Illinois foaled horses or both. A minimum of 6 races shall
23be conducted each week limited to Illinois conceived and foaled
24or Illinois foaled horses or both. No horses shall be permitted
25to start in such races unless duly registered under the rules

 

 

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1of the Department of Agriculture.
2    (c) Conditions of races under subsection (b) shall be
3commensurate with past performance, quality, and class of
4Illinois conceived and foaled and Illinois foaled horses
5available. If, however, sufficient competition cannot be had
6among horses of that class on any day, the races may, with
7consent of the Board, be eliminated for that day and substitute
8races provided.
9    (d) There is hereby created a special fund of the State
10Treasury to be known as the Illinois Thoroughbred Breeders
11Fund.
12    Beginning on the effective date of this amendatory Act of
13the 100th General Assembly, the Illinois Thoroughbred Breeders
14Fund shall become a non-appropriated trust fund held separately
15from State moneys. Expenditures from this Fund shall no longer
16be subject to appropriation.
17    Except as provided in subsection (g) of Section 27 of this
18Act, 8.5% of all the monies received by the State as privilege
19taxes on Thoroughbred racing meetings shall be paid into the
20Illinois Thoroughbred Breeders Fund.
21    Notwithstanding any provision of law to the contrary,
22amounts deposited into the Illinois Thoroughbred Breeders Fund
23from revenues generated by electronic gaming after the
24effective date of this amendatory Act of the 100th General
25Assembly shall be in addition to tax and fee amounts paid under
26this Section for calendar year 2017 and thereafter.

 

 

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1    (e) The Illinois Thoroughbred Breeders Fund shall be
2administered by the Department of Agriculture with the advice
3and assistance of the Advisory Board created in subsection (f)
4of this Section.
5    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
6shall consist of the Director of the Department of Agriculture,
7who shall serve as Chairman; a member of the Illinois Racing
8Board, designated by it; 2 representatives of the organization
9licensees conducting thoroughbred racing meetings, recommended
10by them; 2 representatives of the Illinois Thoroughbred
11Breeders and Owners Foundation, recommended by it; one
12representative and 2 representatives of the Horsemen's
13Benevolent Protective Association; and one representative from
14the Illinois Thoroughbred Horsemen's Association or any
15successor organization established in Illinois comprised of
16the largest number of owners and trainers, recommended by it,
17with one representative of the Horsemen's Benevolent and
18Protective Association to come from its Illinois Division, and
19one from its Chicago Division. Advisory Board members shall
20serve for 2 years commencing January 1 of each odd numbered
21year. If representatives of the organization licensees
22conducting thoroughbred racing meetings, the Illinois
23Thoroughbred Breeders and Owners Foundation, and the
24Horsemen's Benevolent Protection Association, and the Illinois
25Thoroughbred Horsemen's Association have not been recommended
26by January 1, of each odd numbered year, the Director of the

 

 

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1Department of Agriculture shall make an appointment for the
2organization failing to so recommend a member of the Advisory
3Board. Advisory Board members shall receive no compensation for
4their services as members but shall be reimbursed for all
5actual and necessary expenses and disbursements incurred in the
6execution of their official duties.
7    (g) No monies shall be expended from the Illinois
8Thoroughbred Breeders Fund except as appropriated by the
9General Assembly. Monies expended appropriated from the
10Illinois Thoroughbred Breeders Fund shall be expended by the
11Department of Agriculture, with the advice and assistance of
12the Illinois Thoroughbred Breeders Fund Advisory Board, for the
13following purposes only:
14        (1) To provide purse supplements to owners of horses
15    participating in races limited to Illinois conceived and
16    foaled and Illinois foaled horses. Any such purse
17    supplements shall not be included in and shall be paid in
18    addition to any purses, stakes, or breeders' awards offered
19    by each organization licensee as determined by agreement
20    between such organization licensee and an organization
21    representing the horsemen. No monies from the Illinois
22    Thoroughbred Breeders Fund shall be used to provide purse
23    supplements for claiming races in which the minimum
24    claiming price is less than $7,500.
25        (2) To provide stakes and awards to be paid to the
26    owners of the winning horses in certain races limited to

 

 

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

 

 

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

 

 

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1        (8) To provide for a scholarship and training program
2    for students of equine veterinary medicine.
3        (9) To provide for dissemination of public information
4    designed to promote the breeding of thoroughbred horses in
5    Illinois.
6        (10) To provide for all expenses incurred in the
7    administration of the Illinois Thoroughbred Breeders Fund.
8    (h) The Illinois Thoroughbred Breeders Fund is not subject
9to administrative charges or chargebacks, including, but not
10limited to, those authorized under Section 8h of the State
11Finance Act. Whenever the Governor finds that the amount in the
12Illinois Thoroughbred Breeders Fund is more than the total of
13the outstanding appropriations from such fund, the Governor
14shall notify the State Comptroller and the State Treasurer of
15such fact. The Comptroller and the State Treasurer, upon
16receipt of such notification, shall transfer such excess amount
17from the Illinois Thoroughbred Breeders Fund to the General
18Revenue Fund.
19    (i) A sum equal to 13% of the first prize money of every
20purse won by an Illinois foaled or Illinois conceived and
21foaled horse in races not limited to Illinois foaled horses or
22Illinois conceived and foaled horses, or both, shall be paid by
23the organization licensee conducting the horse race meeting.
24Such sum shall be paid 50% from the organization licensee's
25share of the money wagered and 50% from the purse account as
26follows: 11 1/2% to the breeder of the winning horse and 1 1/2%

 

 

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

 

 

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

 

 

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1distribution of breeders' awards in accordance with the
2provisions of this Act. Such payments shall be delivered by the
3organization licensee within 30 days of the end of each race
4meeting.
5    (j) A sum equal to 13% of the first prize money won in
6every race limited to Illinois foaled horses or Illinois
7conceived and foaled horses, or both, shall be paid in the
8following manner by the organization licensee conducting the
9horse race meeting, 50% from the organization licensee's share
10of the money wagered and 50% from the purse account as follows:
1111 1/2% to the breeders of the horses in each such race which
12are the official first, second, third, and fourth finishers and
131 1/2% to the organization representing thoroughbred breeders
14and owners whose representatives serves on the Illinois
15Thoroughbred Breeders Fund Advisory Board for verifying the
16amounts of breeders' awards earned, ensuring their proper
17distribution in accordance with this Act, and servicing and
18promoting the Illinois horse racing industry. Beginning in the
19calendar year in which an organization licensee that is
20eligible to receive payments under paragraph (13) of subsection
21(g) of Section 26 of this Act begins to receive funds from
22electronic gaming, a sum of 21 1/2% of every purse in a race
23limited to Illinois foaled horses or Illinois conceived and
24foaled horses, or both, shall be paid by the organization
25licensee conducting the horse race meeting. Such sum shall be
26paid 30% from the organization licensee's account and 70% from

 

 

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1the purse account as follows: 20% to the breeders of the horses
2in each such race who are official first, second, third and
3fourth finishers and 1 1/2% to the organization representing
4thoroughbred breeders and owners whose representatives serve
5on the Illinois Thoroughbred Breeders Fund Advisory Board for
6verifying the amounts of breeders' awards earned, ensuring
7their proper distribution in accordance with this Act, and
8servicing and promoting the Illinois thoroughbred horse racing
9industry. The organization representing thoroughbred breeders
10and owners shall cause all expenditures of moneys received
11under this subsection (j) to be audited at least annually by a
12registered public accountant. The organization shall file
13copies of each annual audit with the Racing Board, the Clerk of
14the House of Representatives and the Secretary of the Senate,
15and shall make copies of each annual audit available to the
16public upon request and upon payment of the reasonable cost of
17photocopying the requested number of copies. A sum equal to 12
181/2% of the first prize money won in each race limited to
19Illinois foaled horses or Illinois conceived and foaled horses,
20or both, shall be paid in the following manner by the
21organization licensee conducting the horse race meeting, from
22the organization licensee's share of the money wagered: 11 1/2%
23to the breeders of the horses in each such race which are the
24official first, second, third and fourth finishers and 1% to
25the organization representing thoroughbred breeders and owners
26whose representative serves on the Illinois Thoroughbred

 

 

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1Breeders Fund Advisory Board for verifying the amounts of
2breeders' awards earned, assuring their proper distribution in
3accordance with this Act, and servicing and promoting the
4Illinois thoroughbred horse racing industry. The organization
5representing thoroughbred breeders and owners shall cause all
6expenditures of monies received under this subsection (j) to be
7audited at least annually by a registered public accountant.
8The organization shall file copies of each annual audit with
9the Racing Board, the Clerk of the House of Representatives and
10the Secretary of the Senate, and shall make copies of each
11annual audit available to the public upon request and upon
12payment of the reasonable cost of photocopying the requested
13number of copies.
14    The amounts 11 1/2% paid to the breeders in accordance with
15this subsection shall be distributed as follows:
16        (1) 60% of such sum shall be paid to the breeder of the
17    horse which finishes in the official first position;
18        (2) 20% of such sum shall be paid to the breeder of the
19    horse which finishes in the official second position;
20        (3) 15% of such sum shall be paid to the breeder of the
21    horse which finishes in the official third position; and
22        (4) 5% of such sum shall be paid to the breeder of the
23    horse which finishes in the official fourth position.
24    Such payments shall not reduce any award to the owners of a
25horse or reduce the taxes payable under this Act. Upon
26completion of its racing meet, each organization licensee shall

 

 

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1deliver to the organization representing thoroughbred breeders
2and owners whose representative serves on the Illinois
3Thoroughbred Breeders Fund Advisory Board a listing of all the
4Illinois foaled and the Illinois conceived and foaled horses
5which won breeders' awards and the amount of such breeders'
6awards in accordance with the provisions of this Act. Such
7payments shall be delivered by the organization licensee within
830 days of the end of each race meeting.
9    (k) The term "breeder", as used herein, means the owner of
10the mare at the time the foal is dropped. An "Illinois foaled
11horse" is a foal dropped by a mare which enters this State on
12or before December 1, in the year in which the horse is bred,
13provided the mare remains continuously in this State until its
14foal is born. An "Illinois foaled horse" also means a foal born
15of a mare in the same year as the mare enters this State on or
16before March 1, and remains in this State at least 30 days
17after foaling, is bred back during the season of the foaling to
18an Illinois Registered Stallion (unless a veterinarian
19certifies that the mare should not be bred for health reasons),
20and is not bred to a stallion standing in any other state
21during the season of foaling. An "Illinois foaled horse" also
22means a foal born in Illinois of a mare purchased at public
23auction subsequent to the mare entering this State on or before
24March 1 prior to February 1 of the foaling year providing the
25mare is owned solely by one or more Illinois residents or an
26Illinois entity that is entirely owned by one or more Illinois

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    must not stand for service at any place outside the State
2    of Illinois during the calendar year in which the foal is
3    conceived. The Department of Agriculture may assess and
4    collect application fees for the registration of
5    Illinois-eligible stallions. All fees collected are to be
6    paid into the Illinois Racing Quarter Horse Breeders Fund.
7        (2) Provide for the registration of Illinois conceived
8    and foaled horses. No such horse shall compete in the races
9    limited to Illinois conceived and foaled horses unless it
10    is registered with the Department of Agriculture. The
11    Department of Agriculture may prescribe such forms as are
12    necessary to determine the eligibility of such horses. The
13    Department of Agriculture may assess and collect
14    application fees for the registration of Illinois-eligible
15    foals. All fees collected are to be paid into the Illinois
16    Racing Quarter Horse Breeders Fund. No person shall
17    knowingly prepare or cause preparation of an application
18    for registration of such foals that contains false
19    information.
20    (g) The Department of Agriculture, with the advice and
21assistance of the Illinois Racing Quarter Horse Breeders Fund
22Advisory Board, shall provide that certain races limited to
23Illinois conceived and foaled be stakes races and determine the
24total amount of stakes and awards to be paid to the owners of
25the winning horses in such races.
26(Source: P.A. 98-463, eff. 8-16-13.)
 

 

 

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1    (230 ILCS 5/31)  (from Ch. 8, par. 37-31)
2    Sec. 31. (a) The General Assembly declares that it is the
3policy of this State to encourage the breeding of standardbred
4horses in this State and the ownership of such horses by
5residents of this State in order to provide for: sufficient
6numbers of high quality standardbred horses to participate in
7harness racing meetings in this State, and to establish and
8preserve the agricultural and commercial benefits of such
9breeding and racing industries to the State of Illinois. It is
10the intent of the General Assembly to further this policy by
11the provisions of this Section of this Act.
12    (b) Each organization licensee conducting a harness racing
13meeting pursuant to this Act shall provide for at least two
14races each race program limited to Illinois conceived and
15foaled horses. A minimum of 6 races shall be conducted each
16week limited to Illinois conceived and foaled horses. No horses
17shall be permitted to start in such races unless duly
18registered under the rules of the Department of Agriculture.
19    (b-5) Organization licensees, not including the Illinois
20State Fair or the DuQuoin State Fair, shall provide stake races
21and early closer races for Illinois conceived and foaled horses
22so that purses distributed for such races shall be no less than
2317% of total purses distributed for harness racing in that
24calendar year in addition to any stakes payments and starting
25fees contributed by horse owners.

 

 

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

 

 

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

 

 

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1drivers, and the organization licensees conducting harness
2racing meetings have not been recommended by January 1 of each
3odd numbered year, the Director of the Department of
4Agriculture shall make an appointment for the organization
5failing to so recommend a member of the Advisory Board.
6Advisory Board members shall receive no compensation for their
7services as members but shall be reimbursed for all actual and
8necessary expenses and disbursements incurred in the execution
9of their official duties.
10    (g) No monies shall be expended from the Illinois
11Standardbred Breeders Fund except as appropriated by the
12General Assembly. Monies appropriated from the Illinois
13Standardbred Breeders Fund shall be expended by the Department
14of Agriculture, with the assistance and advice of the Illinois
15Standardbred Breeders Fund Advisory Board for the following
16purposes only:
17        1. To provide purses for races limited to Illinois
18    conceived and foaled horses at the State Fair and the
19    DuQuoin State Fair.
20        2. To provide purses for races limited to Illinois
21    conceived and foaled horses at county fairs.
22        3. To provide purse supplements for races limited to
23    Illinois conceived and foaled horses conducted by
24    associations conducting harness racing meetings.
25        4. No less than 75% of all monies in the Illinois
26    Standardbred Breeders Fund shall be expended for purses in

 

 

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

 

 

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1shall notify the State Comptroller and the State Treasurer of
2such fact. The Comptroller and the State Treasurer, upon
3receipt of such notification, shall transfer such excess amount
4from the Illinois Standardbred Breeders Fund to the General
5Revenue Fund.
6    (i) A sum equal to 13% 12 1/2% of the first prize money of
7the gross every purse won by an Illinois conceived and foaled
8horse shall be paid 50% by the organization licensee conducting
9the horse race meeting to the breeder of such winning horse
10from the organization licensee's account and 50% from the purse
11account of the licensee share of the money wagered. Such
12payment shall not reduce any award to the owner of the horse or
13reduce the taxes payable under this Act. Such payment shall be
14delivered by the organization licensee at the end of each
15quarter race meeting.
16    (j) The Department of Agriculture shall, by rule, with the
17assistance and advice of the Illinois Standardbred Breeders
18Fund Advisory Board:
19        1. Qualify stallions for Illinois Standardbred
20    Breeders Fund breeding; such stallion shall be owned by a
21    resident of the State of Illinois or by an Illinois
22    corporation all of whose shareholders, directors, officers
23    and incorporators are residents of the State of Illinois.
24    Such stallion shall stand for service at and within the
25    State of Illinois at the time of a foal's conception, and
26    such stallion must not stand for service at any place, nor

 

 

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1    may semen from such stallion be transported, outside the
2    State of Illinois during that calendar year in which the
3    foal is conceived and that the owner of the stallion was
4    for the 12 months prior, a resident of Illinois. Foals
5    conceived outside the State of Illinois from shipped semen
6    from a stallion qualified for breeders' awards under this
7    Section are not eligible to participate in the Illinois
8    conceived and foaled program. The articles of agreement of
9    any partnership, joint venture, limited partnership,
10    syndicate, association or corporation and any bylaws and
11    stock certificates must contain a restriction that
12    provides that the ownership or transfer of interest by any
13    one of the persons a party to the agreement can only be
14    made to a person who qualifies as an Illinois resident.
15        2. Provide for the registration of Illinois conceived
16    and foaled horses and no such horse shall compete in the
17    races limited to Illinois conceived and foaled horses
18    unless registered with the Department of Agriculture. The
19    Department of Agriculture may prescribe such forms as may
20    be necessary to determine the eligibility of such horses.
21    No person shall knowingly prepare or cause preparation of
22    an application for registration of such foals containing
23    false information. A mare (dam) must be in the state at
24    least 180 30 days prior to foaling or remain in the State
25    at least 30 days at the time of foaling. Beginning with the
26    1996 breeding season and for foals of 1997 and thereafter,

 

 

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

 

 

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

 

 

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

 

 

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1burdens among all racetracks, the licensees affiliated or
2associated with each racetrack that has been awarded live
3racing dates in the current year shall receive an immediate
4pari-mutuel tax credit in an amount equal to the greater of (i)
550% of the amount of the real estate taxes paid in the prior
6year attributable to that racetrack, or (ii) the amount by
7which the real estate taxes paid in the prior year attributable
8to that racetrack exceeds 60% of the average real estate taxes
9paid in the prior year for all racetracks awarded live horse
10racing meets in the current year.
11    Each year, regardless of whether the organization licensee
12conducted live racing in the year of certification, the Board
13shall certify in writing, prior to December 31, the real estate
14taxes paid in that year for each racetrack and the amount of
15the pari-mutuel tax credit that each organization licensee,
16inter-track intertrack wagering licensee, and inter-track
17intertrack wagering location licensee that derives its license
18from such racetrack is entitled in the succeeding calendar
19year. The real estate taxes considered under this Section for
20any racetrack shall be those taxes on the real estate parcels
21and related facilities used to conduct a horse race meeting and
22inter-track wagering at such racetrack under this Act. In no
23event shall the amount of the tax credit under this Section
24exceed the amount of pari-mutuel taxes otherwise calculated
25under this Act. The amount of the tax credit under this Section
26shall be retained by each licensee and shall not be subject to

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1electronic gaming license may be awarded for any race track. A
2holder of an electronic gaming license shall be subject to the
3Illinois Gambling Act and rules of the Illinois Gaming Board
4concerning electronic gaming. If the person, firm,
5corporation, or limited liability company having operating
6control of a race track is found by the Illinois Gaming Board
7to be unsuitable for an electronic gaming license under the
8Illinois Gambling Act and rules of the Gaming Board, that
9person, firm, corporation, or limited liability company shall
10not be granted an electronic gaming license. Each license shall
11specify the number of gaming positions that its holder may
12operate.
13    An electronic gaming licensee may not permit persons under
1421 years of age to be present in its electronic gaming
15facility, but the licensee may accept wagers on live racing and
16inter-track wagers at its electronic gaming facility.
17    (b) For purposes of this subsection, "adjusted gross
18receipts" means an electronic gaming licensee's gross receipts
19less winnings paid to wagerers and shall also include any
20amounts that would otherwise be deducted pursuant to subsection
21(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
22gross receipts by an electronic gaming licensee from electronic
23gaming remaining after the payment of taxes under Section 13 of
24the Illinois Gambling Act shall be distributed as follows:
25        (1) Amounts shall be paid to the purse account at the
26    track at which the organization licensee is conducting

 

 

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

 

 

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

 

 

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1electronic gaming receipts shall be used to operate laundry
2facilities or a kitchen for backstretch workers at that race
3track, and an amount equal to 0.33 1/3% of the electronic
4gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)
5non-profit organization that cares for injured and unwanted
6horses that race at that race track.
7    Annually, from the purse account of organization licensees
8conducting thoroughbred races at race tracks in Cook County,
9$100,000 shall be paid for division and equal distribution to
10the animal sciences department of each Illinois public
11university system engaged in equine research and education on
12or before the effective date of this amendatory Act of the
13100th General Assembly for equine research and education.
14    (d) Annually, from the purse account of an organization
15licensee racing standardbred horses, an amount equal to 15% of
16the electronic gaming receipts placed into that purse account
17shall be paid to the Illinois Colt Stakes Purse Distribution
18Fund. Moneys deposited into the Illinois Colt Stakes Purse
19Distribution Fund shall be used for standardbred racing as
20authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
21subsection (g) of Section 31 of this Act and for bonus awards
22as authorized under paragraph 6 of subsection (j) of Section 31
23of this Act.
 
24    Section 90-40. The Riverboat Gambling Act is amended by
25changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,

 

 

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111.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
2and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,
37.12, 7.13, and 25 as follows:
 
4    (230 ILCS 10/1)  (from Ch. 120, par. 2401)
5    Sec. 1. Short title. This Act shall be known and may be
6cited as the Illinois Riverboat Gambling Act.
7(Source: P.A. 86-1029.)
 
8    (230 ILCS 10/2)  (from Ch. 120, par. 2402)
9    Sec. 2. Legislative Intent.
10    (a) This Act is intended to benefit the people of the State
11of Illinois by assisting economic development, and promoting
12Illinois tourism, and by increasing the amount of revenues
13available to the State to assist and support education, and to
14defray State expenses, including unpaid bills.
15    (b) While authorization of riverboat and casino gambling
16will enhance investment, beautification, development and
17tourism in Illinois, it is recognized that it will do so
18successfully only if public confidence and trust in the
19credibility and integrity of the gambling operations and the
20regulatory process is maintained. Therefore, regulatory
21provisions of this Act are designed to strictly regulate the
22facilities, persons, associations and practices related to
23gambling operations pursuant to the police powers of the State,
24including comprehensive law enforcement supervision.

 

 

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

 

 

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1of the State of Illinois. Notwithstanding any provision in this
2subsection (c) to the contrary, a licensee that receives its
3license pursuant to subsection (e-5) of Section 7 may conduct
4riverboat gambling on Lake Michigan from a home dock located on
5Lake Michigan subject to any limitations contained in Section
67. Notwithstanding any provision in this subsection (c) to the
7contrary, a licensee may conduct gambling at its home dock
8facility as provided in Sections 7 and 11. A licensee may
9conduct riverboat gambling authorized under this Act
10regardless of whether it conducts excursion cruises. A licensee
11may permit the continuous ingress and egress of passengers for
12the purpose of gambling.
13    (d) Gambling that is conducted in accordance with this Act
14using slot machines and video games of chance and other
15electronic gambling games as defined in both this Act and the
16Illinois Horse Racing Act of 1975 is authorized.
17(Source: P.A. 91-40, eff. 6-25-99.)
 
18    (230 ILCS 10/4)  (from Ch. 120, par. 2404)
19    Sec. 4. Definitions. As used in this Act:
20    (a) "Board" means the Illinois Gaming Board.
21    (b) "Occupational license" means a license issued by the
22Board to a person or entity to perform an occupation which the
23Board has identified as requiring a license to engage in
24riverboat gambling, casino gambling, or electronic gaming in
25Illinois.

 

 

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

 

 

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

 

 

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12003.
2    "Table game" means a live gaming apparatus upon which
3gaming is conducted or that determines an outcome that is the
4object of a wager, including, but not limited to, baccarat,
5twenty-one, blackjack, poker, craps, roulette wheel, klondike
6table, punchboard, faro layout, keno layout, numbers ticket,
7push card, jar ticket, pull tab, or other similar games that
8are authorized by the Board as a wagering device under this
9Act. "Table game" does not include slot machines or video games
10of chance.
11    (m) The terms "minority person", "female", and "person with
12a disability" shall have the same meaning as defined in Section
132 of the Business Enterprise for Minorities, Females, and
14Persons with Disabilities Act.
15    "Authority" means the Chicago Casino Development
16Authority.
17    "Casino" means a facility at which lawful gambling is
18authorized as provided in this Act.
19    "Owners license" means a license to conduct riverboat or
20casino gambling operations, but does not include an electronic
21gaming license.
22    "Licensed owner" means a person who holds an owners
23license.
24    "Electronic gaming" means slot machine gambling, video
25game of chance gambling, or gambling with electronic gambling
26games as defined in this Act or defined by the Board that is

 

 

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1conducted at a race track pursuant to an electronic gaming
2license.
3    "Electronic gaming facility" means the area where the Board
4has authorized electronic gaming at a race track of an
5organization licensee under the Illinois Horse Racing Act of
61975 that holds an electronic gaming license.
7    "Electronic gaming license" means a license issued by the
8Board under Section 7.7 of this Act authorizing electronic
9gaming at an electronic gaming facility.
10    "Electronic gaming licensee" means an entity that holds an
11electronic gaming license.
12    "Organization licensee" means an entity authorized by the
13Illinois Racing Board to conduct pari-mutuel wagering in
14accordance with the Illinois Horse Racing Act of 1975. With
15respect only to electronic gaming, "organization licensee"
16includes the authorization for electronic gaming created under
17subsection (a) of Section 56 of the Illinois Horse Racing Act
18of 1975.
19    "Casino operator license" means the license held by the
20person or entity selected by the Authority to manage and
21operate a riverboat or casino within the geographic area of the
22authorized municipality pursuant to this Act and the Chicago
23Casino Development Authority Act.
24    "Wide area progressive system" means a method of linking
25progressive slot machines or electronic gaming machines across
26telecommunication lines as part of a network connecting

 

 

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1participating facilities. Wide area progressive systems offer
2a common progressive jackpot at all participating locations and
3the award of the jackpot is at random.
4(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
 
5    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
6    Sec. 5. Gaming Board.
7    (a) (1) There is hereby established the Illinois Gaming
8Board, which shall have the powers and duties specified in this
9Act and in the Chicago Casino Development Authority Act, and
10all other powers necessary and proper to fully and effectively
11execute this Act for the purpose of administering, regulating,
12and enforcing the system of riverboat and casino gambling and
13electronic gaming established by this Act and by the Chicago
14Casino Development Authority Act. Its jurisdiction shall
15extend under this Act and the Chicago Casino Development
16Authority Act to every person, association, corporation,
17partnership and trust involved in riverboat and casino gambling
18operations and electronic gaming in the State of Illinois.
19    (2) The Board shall consist of 5 members to be appointed by
20the Governor with the advice and consent of the Senate, one of
21whom shall be designated by the Governor to be chairperson
22chairman. Each member shall have a reasonable knowledge of the
23practice, procedure and principles of gambling operations.
24Each member shall either be a resident of Illinois or shall
25certify that he or she will become a resident of Illinois

 

 

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1before taking office.
2    On and after the effective date of this amendatory Act of
3the 100th General Assembly, new appointees to the Board must
4include the following:
5        (A) One member who has received, at a minimum, a
6    bachelor's degree from an accredited school and at least 10
7    years of verifiable training and experience in the fields
8    of investigation and law enforcement.
9        (B) One member who is a certified public accountant
10    with experience in auditing and with knowledge of complex
11    corporate structures and transactions.
12        (C) One member who has 5 years' experience as a
13    principal, senior officer, or director of a company or
14    business with either material responsibility for the daily
15    operations and management of the overall company or
16    business or material responsibility for the policy making
17    of the company or business.
18        (D) One member who is a lawyer licensed to practice law
19    in Illinois.
20    Notwithstanding any provision of this subsection (a), the
21requirements of subparagraphs (A) through (D) of this paragraph
22(2) shall not apply to any person reappointed pursuant to
23paragraph (3).
24    No more than 3 members of the Board may be from the same
25political party. The Board should reflect the ethnic, cultural,
26and geographic diversity of the State. No Board member shall,

 

 

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1within a period of one year immediately preceding nomination,
2have been employed or received compensation or fees for
3services from a person or entity, or its parent or affiliate,
4that has engaged in business with the Board, a licensee, or a
5licensee under the Illinois Horse Racing Act of 1975. Board
6members must publicly disclose all prior affiliations with
7gaming interests, including any compensation, fees, bonuses,
8salaries, and other reimbursement received from a person or
9entity, or its parent or affiliate, that has engaged in
10business with the Board, a licensee, or a licensee under the
11Illinois Horse Racing Act of 1975. This disclosure must be made
12within 30 days after nomination but prior to confirmation by
13the Senate and must be made available to the members of the
14Senate. At least one member shall be experienced in law
15enforcement and criminal investigation, at least one member
16shall be a certified public accountant experienced in
17accounting and auditing, and at least one member shall be a
18lawyer licensed to practice law in Illinois.
19    (3) The terms of office of the Board members shall be 3
20years, except that the terms of office of the initial Board
21members appointed pursuant to this Act will commence from the
22effective date of this Act and run as follows: one for a term
23ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
24a term ending July 1, 1993. Upon the expiration of the
25foregoing terms, the successors of such members shall serve a
26term for 3 years and until their successors are appointed and

 

 

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

 

 

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

 

 

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1any bond given by any member of the Board under this Section
2shall be taken to be a part of the necessary expenses of the
3Board.
4    (7.5) For the examination of all mechanical,
5electromechanical, or electronic table games, slot machines,
6slot accounting systems, and other electronic gaming equipment
7for compliance with this Act, the Board may utilize the
8services of one or more independent outside testing
9laboratories that have been accredited by a national
10accreditation body and that, in the judgment of the Board, are
11qualified to perform such examinations.
12    (8) The Board shall employ such personnel as may be
13necessary to carry out its functions and shall determine the
14salaries of all personnel, except those personnel whose
15salaries are determined under the terms of a collective
16bargaining agreement. No person shall be employed to serve the
17Board who is, or whose spouse, parent or child is, an official
18of, or has a financial interest in or financial relation with,
19any operator engaged in gambling operations within this State
20or any organization engaged in conducting horse racing within
21this State. For the one year immediately preceding employment,
22an employee shall not have been employed or received
23compensation or fees for services from a person or entity, or
24its parent or affiliate, that has engaged in business with the
25Board, a licensee, or a licensee under the Illinois Horse
26Racing Act of 1975. Any employee violating these prohibitions

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    concurrence of a majority of the members of the Board
2    regarding the navigability of water, relative to
3    excursions, in the event of extreme weather conditions,
4    acts of God or other extreme circumstances.
5        (20) To delegate the execution of any of its powers
6    under this Act or the Chicago Casino Development Authority
7    Act for the purpose of administering and enforcing this
8    Act, the Chicago Casino Development Authority Act, and the
9    its rules adopted by the Board under both Acts and
10    regulations hereunder.
11        (20.5) To approve any contract entered into on its
12    behalf.
13        (20.6) To appoint investigators to conduct
14    investigations, searches, seizures, arrests, and other
15    duties imposed under this Act, as deemed necessary by the
16    Board. These investigators have and may exercise all of the
17    rights and powers of peace officers, provided that these
18    powers shall be limited to offenses or violations occurring
19    or committed in a casino, in an electronic gaming facility,
20    or on a riverboat or dock, as defined in subsections (d)
21    and (f) of Section 4, or as otherwise provided by this Act,
22    the Chicago Casino Development Authority Act, or any other
23    law.
24        (20.7) To contract with the Department of State Police
25    for the use of trained and qualified State police officers
26    and with the Department of Revenue for the use of trained

 

 

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1    and qualified Department of Revenue investigators to
2    conduct investigations, searches, seizures, arrests, and
3    other duties imposed under this Act or the Chicago Casino
4    Development Authority Act and to exercise all of the rights
5    and powers of peace officers, provided that the powers of
6    Department of Revenue investigators under this subdivision
7    (20.7) 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    or any other law. In the event the Department of State
12    Police or the Department of Revenue is unable to fill
13    contracted police or investigative positions, the Board
14    may appoint investigators to fill those positions pursuant
15    to subdivision (20.6).
16        (21) To adopt rules concerning the conduct of
17    electronic gaming.
18        (22) To have the same jurisdiction and supervision over
19    casinos and electronic gaming facilities as the Board has
20    over riverboats, including, but not limited to, the power
21    to (i) investigate, review, and approve contracts as that
22    power is applied to riverboats, (ii) adopt rules for
23    administering the provisions of this Act or the Chicago
24    Casino Development Authority Act, (iii) adopt standards
25    for the licensing of all persons involved with a casino or
26    electronic gaming facility, (iv) investigate alleged

 

 

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1    violations of this Act by any person involved with a casino
2    or electronic gaming facility, and (v) require that
3    records, including financial or other statements of any
4    casino or electronic gaming facility, shall be kept in such
5    manner as prescribed by the Board.
6        (23) To supervise and regulate the Chicago Casino
7    Development Authority in accordance with the Chicago
8    Casino Development Authority Act and the provisions of this
9    Act.
10        (24) (21) To take any other action as may be reasonable
11    or appropriate to enforce this Act, the Chicago Casino
12    Development Authority Act, and the rules adopted by the
13    Board under both Acts and regulations hereunder.
14    All Board powers enumerated in this Section in relation to
15licensees shall apply equally to the holder of any casino
16management contract entered into pursuant to the Chicago Casino
17Development Authority Act.
18    (d) The Board may seek and shall receive the cooperation of
19the Department of State Police in conducting background
20investigations of applicants and in fulfilling its
21responsibilities under this Section. Costs incurred by the
22Department of State Police as a result of such cooperation
23shall be paid by the Board in conformance with the requirements
24of Section 2605-400 of the Department of State Police Law (20
25ILCS 2605/2605-400).
26    (e) The Board must authorize to each investigator and to

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1for, issuance of, renewal of, and other processes associated
2with municipal permits and licenses.
3    (k) Any official or employee who violates any provision of
4this Section is guilty of a Class 4 felony.
5    (l) For purposes of this Section, "host community" or "host
6municipality" means a unit of local government that contains a
7riverboat or casino within its borders, but does not include
8the City of Chicago or the Chicago Casino Development
9Authority.
 
10    (230 ILCS 10/6)  (from Ch. 120, par. 2406)
11    Sec. 6. Application for Owners License.
12    (a) A qualified person may apply to the Board for an owners
13license to conduct a riverboat gambling operation as provided
14in this Act. The application shall be made on forms provided by
15the Board and shall contain such information as the Board
16prescribes, including but not limited to the identity of the
17riverboat on which such gambling operation is to be conducted,
18if applicable, and the exact location where such riverboat or
19casino will be located docked, a certification that the
20riverboat will be registered under this Act at all times during
21which gambling operations are conducted on board, detailed
22information regarding the ownership and management of the
23applicant, and detailed personal information regarding the
24applicant. Any application for an owners license to be
25re-issued on or after June 1, 2003 shall also include the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (g) A person who knowingly makes a false statement on an
2application is guilty of a Class A misdemeanor.
3(Source: P.A. 99-143, eff. 7-27-15.)
 
4    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
5    Sec. 7. Owners Licenses.
6    (a) The Board shall issue owners licenses to persons or
7entities , firms or corporations which apply for such licenses
8upon payment to the Board of the non-refundable license fee as
9provided in subsection (e) or (e-5) set by the Board, upon
10payment of a $25,000 license fee for the first year of
11operation and a $5,000 license fee for each succeeding year and
12upon a determination by the Board that the applicant is
13eligible for an owners license pursuant to this Act, the
14Chicago Casino Development Authority Act, and the rules of the
15Board. From the effective date of this amendatory Act of the
1695th General Assembly until (i) 3 years after the effective
17date of this amendatory Act of the 95th General Assembly, (ii)
18the date any organization licensee begins to operate a slot
19machine or video game of chance under the Illinois Horse Racing
20Act of 1975 or this Act, (iii) the date that payments begin
21under subsection (c-5) of Section 13 of the Act, or (iv) the
22wagering tax imposed under Section 13 of this Act is increased
23by law to reflect a tax rate that is at least as stringent or
24more stringent than the tax rate contained in subsection (a-3)
25of Section 13, or (v) when an owners licensee holding a license

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1applicant shall state the dock at which the riverboat is based
2and the water on which the riverboat will be located. The Board
3shall issue 5 licenses to become effective not earlier than
4January 1, 1991. Three of such licenses shall authorize
5riverboat gambling on the Mississippi River, or, with approval
6by the municipality in which the riverboat was docked on August
77, 2003 and with Board approval, be authorized to relocate to a
8new location, in a municipality that (1) borders on the
9Mississippi River or is within 5 miles of the city limits of a
10municipality that borders on the Mississippi River and (2), on
11August 7, 2003, had a riverboat conducting riverboat gambling
12operations pursuant to a license issued under this Act; one of
13which shall authorize riverboat gambling from a home dock in
14the city of East St. Louis. One other license shall authorize
15riverboat gambling on the Illinois River in Tazewell County or,
16with Board approval, shall authorize the riverboat to relocate
17to a new location that is no more than 10 miles away from its
18original location, in a municipality that borders on the
19Illinois River or is within 5 miles of the city limits of a
20municipality that borders on the Illinois River south of
21Marshall County. The Board shall issue one additional license
22to become effective not earlier than March 1, 1992, which shall
23authorize riverboat gambling on the Des Plaines River in Will
24County. The Board may issue 4 additional licenses to become
25effective not earlier than March 1, 1992. In determining the
26water upon which riverboats will operate, the Board shall

 

 

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

 

 

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

 

 

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

 

 

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1the proposed riverboat in the municipality or county. The
2corporate authority or county board must subsequently
3memorialize the details concerning the proposed riverboat in a
4resolution that must be adopted by a majority of the corporate
5authority or county board before any certification is sent to
6the Board. The Board shall not alter, amend, change, or
7otherwise interfere with any agreement between the applicant
8and the corporate authority of the municipality or county board
9of the county regarding the location of any temporary or
10permanent facility.
11    In addition, prior to the Board issuing the owners license
12authorized under paragraph (4) of subsection (e-5), an impact
13study shall be completed to determine what location in the city
14will provide the greater impact to the region, including the
15creation of jobs and the generation of tax revenue.
16    (e-10) The licenses authorized under subsection (e-5) of
17this Section shall be issued within 12 months after the date
18the license application is submitted. If the Board does not
19issue the licenses within that time period, then the Board
20shall give a written explanation to the applicant as to why it
21has not reached a determination and when it reasonably expects
22to make a determination. The fee for the issuance or renewal of
23a license issued pursuant to this subsection (e-10) shall be
24$100,000. Additionally, a licensee located outside of Cook
25County shall pay a minimum initial fee of $17,500 per gaming
26position, and a licensee located in Cook County shall pay a

 

 

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

 

 

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1thereon for a period of 3 years after the effective date of the
2license. Holders of the first 10 owners licenses must pay the
3annual license fee for each of the 3 years during which they
4are authorized to own riverboats.
5    (g) Upon the termination, expiration, or revocation of each
6of the first 10 licenses, which shall be issued for a 3 year
7period, all licenses are renewable annually upon payment of the
8fee and a determination by the Board that the licensee
9continues to meet all of the requirements of this Act and the
10Board's rules. However, for licenses renewed on or after May 1,
111998, including casino operator licenses, renewal shall be for
12a period of 4 years, unless the Board sets a shorter period.
13Notwithstanding any provision in this subsection (g) to the
14contrary, any license that is awarded to the Chicago Casino
15Development Authority shall not expire, but it shall be subject
16to the provisions of this Act and the rules of the Board.
17    (h) An owners license, except for an owners license issued
18under subsection (e-5) of this Section, shall entitle the
19licensee to own up to 2 riverboats.
20    An owners licensee of a casino or riverboat that is located
21in the City of Chicago pursuant to paragraph (1) of subsection
22(e-5) of this Section shall limit the number of gaming
23positions to 4,000 for such owner. An owners licensee
24authorized under subsection (e) or paragraph (2), (3), (4), or
25(5) of subsection (e-5) of this Section shall limit the number
26of gaming positions to 1,600 for any such owners license,

 

 

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

 

 

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

 

 

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1calculation results in a negative amount, then the owners
2licensee is not entitled to any reimbursement of fees
3previously paid. This reconciliation payment may be made in
4installments over a period of no more than 2 years, subject to
5Board approval. Any installment payments shall include an
6annual market interest rate as determined by the Board. These
7reconciliation payments shall be deposited into the Gaming
8Facilities Fee Revenue Fund.
9    (h-10) For owners licensees authorized under paragraphs
10(2) through (5) of subsection (e-5) of this Section, the
11application for such new owners licenses shall ask the
12applicants to stipulate in their applications the number of
13gaming positions each applicant would like to reserve, up to
141,600 gaming positions. Once the last winning applicant for
15each of these owners licenses has been selected by the Board,
16the Board shall publish the number of gaming positions reserved
17and unreserved by each winning applicant, shall accept requests
18for additional gaming positions from any winning applicants or
19owners licensee who initially reserved 1,600 gaming positions,
20and shall allocate expeditiously the unreserved gaming
21positions to such requesting winning applicants or owners
22licensees in a manner to maximize revenue to the State;
23provided, however, that no owners licensee (other than the
24Chicago Casino Development Authority) shall obtain more than
252,000 positions total.
26    In the event that not all of the unreserved gaming

 

 

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1positions described in the first and second paragraphs of this
2subsection (h-10) were requested by owners licensees and
3applicants, then until there are no longer unreserved gaming
4positions, the Board periodically shall govern a process to
5allocate the unreserved gaming positions in a manner to
6maximize revenue to the State.
7    Unreserved gaming positions retained from and allocated to
8owners licensees by the Board pursuant to this subsection
9(h-10) shall not be allocated to electronic gaming licensees
10pursuant to subsection (e) of Section 7.7 of this Act.
11    (i) A licensed owner is authorized to apply to the Board
12for and, if approved therefor, to receive all licenses from the
13Board necessary for the operation of a riverboat or a casino,
14including a liquor license, a license to prepare and serve food
15for human consumption, and other necessary licenses. All use,
16occupation and excise taxes which apply to the sale of food and
17beverages in this State and all taxes imposed on the sale or
18use of tangible personal property apply to such sales aboard
19the riverboat or in the casino.
20    (j) The Board may issue or re-issue a license authorizing a
21riverboat to dock in a municipality or approve a relocation
22under Section 11.2 only if, prior to the issuance or
23re-issuance of the license or approval, the governing body of
24the municipality in which the riverboat will dock has by a
25majority vote approved the docking of riverboats in the
26municipality. The Board may issue or re-issue a license

 

 

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1authorizing a riverboat to dock in areas of a county outside
2any municipality or approve a relocation under Section 11.2
3only if, prior to the issuance or re-issuance of the license or
4approval, the governing body of the county has by a majority
5vote approved of the docking of riverboats within such areas.
6    (k) An owners licensee may conduct land-based gambling
7operations upon approval by the Board.
8    (l) An owners licensee may conduct gaming at a temporary
9facility pending the construction of a permanent facility or
10the remodeling or relocation of an existing facility to
11accommodate gaming participants for up to 24 months after the
12temporary facility begins to conduct gaming. Upon request by an
13owners licensee and upon a showing of good cause by the owners
14licensee, the Board shall extend the period during which the
15licensee may conduct gaming at a temporary facility by up to 12
16months. The Board shall make rules concerning the conduct of
17gaming from temporary facilities.
18(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 
19    (230 ILCS 10/7.3)
20    Sec. 7.3. State conduct of gambling operations.
21    (a) If, after reviewing each application for a re-issued
22license, the Board determines that the highest prospective
23total revenue to the State would be derived from State conduct
24of the gambling operation in lieu of re-issuing the license,
25the Board shall inform each applicant of its decision. The

 

 

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1Board shall thereafter have the authority, without obtaining an
2owners license, to conduct casino or riverboat gambling
3operations as previously authorized by the terminated,
4expired, revoked, or nonrenewed license through a licensed
5manager selected pursuant to an open and competitive bidding
6process as set forth in Section 7.5 and as provided in Section
77.4.
8    (b) The Board may locate any casino or riverboat on which a
9gambling operation is conducted by the State in any home dock
10or other location authorized by Section 3(c) upon receipt of
11approval from a majority vote of the governing body of the
12municipality or county, as the case may be, in which the
13riverboat will dock.
14    (c) The Board shall have jurisdiction over and shall
15supervise all gambling operations conducted by the State
16provided for in this Act and the Chicago Casino Development
17Authority Act and shall have all powers necessary and proper to
18fully and effectively execute the provisions of this Act and
19the Chicago Casino Development Authority Act relating to
20gambling operations conducted by the State.
21    (d) The maximum number of owners licenses authorized under
22Section 7 7(e) shall be reduced by one for each instance in
23which the Board authorizes the State to conduct a casino or
24riverboat gambling operation under subsection (a) in lieu of
25re-issuing a license to an applicant under Section 7.1.
26(Source: P.A. 93-28, eff. 6-20-03.)
 

 

 

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

 

 

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1    (5) The Board shall evaluate the proposals within a
2reasonable time and select no more than 3 final applicants to
3make presentations of their proposals to the Board.
4    (6) The final applicants shall make their presentations to
5the Board on the same day during an open session of the Board.
6    (7) As soon as practicable after the public presentations
7by the final applicants, the Board, in its discretion, may
8conduct further negotiations among the 3 final applicants.
9During such negotiations, each final applicant may increase its
10license bid or otherwise enhance its bid proposal. At the
11conclusion of such negotiations, the Board shall select the
12winning proposal. In the case of negotiations for an owners
13license, the Board may, at the conclusion of such negotiations,
14make the determination allowed under Section 7.3(a).
15    (8) Upon selection of a winning bid, the Board shall
16evaluate the winning bid within a reasonable period of time for
17licensee suitability in accordance with all applicable
18statutory and regulatory criteria.
19    (9) If the winning bidder is unable or otherwise fails to
20consummate the transaction, (including if the Board determines
21that the winning bidder does not satisfy the suitability
22requirements), the Board may, on the same criteria, select from
23the remaining bidders or make the determination allowed under
24Section 7.3(a).
25(Source: P.A. 93-28, eff. 6-20-03.)
 

 

 

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1    (230 ILCS 10/7.7 new)
2    Sec. 7.7. Electronic gaming.
3    (a) The General Assembly finds that the horse racing and
4riverboat gambling industries share many similarities and
5collectively comprise the bulk of the State's gaming industry.
6One feature common to both industries is that each is highly
7regulated by the State of Illinois. The General Assembly
8further finds, however, that despite their shared features each
9industry is distinct from the other in that horse racing is and
10continues to be intimately tied to Illinois' agricultural
11economy and is, at its core, a spectator sport. This
12distinction requires the General Assembly to utilize different
13methods to regulate and promote the horse racing industry
14throughout the State. The General Assembly finds that in order
15to promote live horse racing as a spectator sport in Illinois
16and the agricultural economy of this State, it is necessary to
17allow electronic gaming at Illinois race tracks as an ancillary
18use given the success of other states in increasing live racing
19purse accounts and improving the quality of horses
20participating in horse race meetings.
21    (b) The Illinois Gaming Board shall award one electronic
22gaming license to each person or entity having operating
23control of a race track that applies under Section 56 of the
24Illinois Horse Racing Act of 1975, subject to the application
25and eligibility requirements of this Section. Within 60 days
26after the effective date of this amendatory Act of the 100th

 

 

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

 

 

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1with the rules of the Board. Each application for an electronic
2gaming license shall include a non-refundable application fee
3of $100,000. In addition, a non-refundable fee of $50,000 shall
4be paid at the time of filing to defray the costs associated
5with background investigations conducted by the Board. If the
6costs of the background investigation exceed $50,000, the
7applicant shall pay the additional amount to the Board within 7
8days after a request by the Board. If the costs of the
9investigation are less than $50,000, the applicant shall
10receive a refund of the remaining amount. All information,
11records, interviews, reports, statements, memoranda, or other
12data supplied to or used by the Board in the course of this
13review or investigation of an applicant for an electronic
14gaming license under this Act shall be privileged and strictly
15confidential and shall be used only for the purpose of
16evaluating an applicant for an electronic gaming 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. The application
22fee shall be deposited into the Gaming Facilities Fee Revenue
23Fund.
24    Each applicant shall submit with his or her application, on
25forms provided by the Board, 2 sets of his or her fingerprints.
26The Board shall charge each applicant a fee set by the

 

 

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

 

 

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1an electronic gaming license shall be $100,000.
2    (d) To be eligible to conduct electronic gaming, a person
3or entity having operating control of a race track must (i)
4obtain an electronic gaming license, (ii) hold an organization
5license under the Illinois Horse Racing Act of 1975, (iii) hold
6an inter-track wagering license, (iv) pay an initial fee of
7$30,000 per gaming position from electronic gaming licensees
8where electronic gaming is conducted in Cook County and $17,500
9for electronic gaming licensees where electronic gaming is
10located outside of Cook County before beginning to conduct
11electronic gaming plus make the reconciliation payment
12required under subsection (k), (v) conduct live racing in
13accordance with subsections (e-1), (e-2), and (e-3) of Section
1420 of the Illinois Horse Racing Act of 1975 or for a licensee
15that is only authorized 350 gaming positions pursuant to
16subsection (d) of Section 7.7 of this Act, have a fully
17operational facility running at least 96 live races over a
18period of at least 15 days per year until such time as the
19total number of gaming positions is increased to 900, (vi) meet
20the requirements of subsection (a) of Section 56 of the
21Illinois Horse Racing Act of 1975, (vii) for organization
22licensees conducting standardbred race meetings, keep
23backstretch barns and dormitories open and operational
24year-round unless a lesser schedule is mutually agreed to by
25the organization licensee and the horsemen's association
26racing at that organization licensee's race meeting, (viii) for

 

 

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

 

 

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

 

 

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

 

 

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1licensee forfeits the right to operate those positions, but is
2not entitled to a refund of any fees paid. The Board may, after
3holding a public hearing, grant extensions so long as the
4electronic gaming licensee is working in good faith to make the
5positions operational. The extension may be for a period of 6
6months. If, after the period of the extension, the electronic
7gaming licensee has not made the positions operational, then
8another public hearing must be held by the Board before it may
9grant another extension.
10    Unreserved gaming positions retained from and allocated to
11electronic gaming licensees by the Board pursuant to this
12subsection (g) shall not be allocated to owners licensees
13pursuant to subsection (h-10) of Section 7 of this Act.
14    For the purpose of this subsection (g), the unreserved
15gaming positions for each electronic gaming licensee shall be
16the applicable limitation set forth in subsection (f) of this
17Section, less the number of reserved gaming positions by such
18electronic gaming licensee, and the total unreserved gaming
19positions shall be the aggregate of the unreserved gaming
20positions for all electronic gaming licensees.
21    (h) Subject to the approval of the Illinois Gaming Board,
22an electronic gaming licensee may make modification or
23additions to any existing buildings and structures to comply
24with the requirements of this Act. The Illinois Gaming Board
25shall make its decision after consulting with the Illinois
26Racing Board. In no case, however, shall the Illinois Gaming

 

 

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1Board approve any modification or addition that alters the
2grounds of the organizational licensee such that the act of
3live racing is an ancillary activity to electronic gaming.
4Electronic gaming may take place in existing structures where
5inter-track wagering is conducted at the race track or a
6facility within 300 yards of the race track in accordance with
7the provisions of this Act and the Illinois Horse Racing Act of
81975.
9    (i) An electronic gaming licensee may conduct electronic
10gaming at a temporary facility pending the construction of a
11permanent facility or the remodeling or relocation of an
12existing facility to accommodate electronic gaming
13participants for up to 24 months after the temporary facility
14begins to conduct electronic gaming. Upon request by an
15electronic gaming licensee and upon a showing of good cause by
16the electronic gaming licensee, the Board shall extend the
17period during which the licensee may conduct electronic gaming
18at a temporary facility by up to 12 months. The Board shall
19make rules concerning the conduct of electronic gaming from
20temporary facilities.
21    Electronic gaming may take place in existing structures
22where inter-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-5) Under no circumstances shall an electronic gaming

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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17.1, and 7.7 shall execute and file a report with the Board no
2later than December 31 of each year that shall contain, but not
3be limited to, the following information:
4        (i) a good faith affirmative action plan to recruit,
5    train, and upgrade minority persons, females, and persons
6    with a disability in all employment classifications;
7        (ii) the total dollar amount of contracts that were
8    awarded to businesses owned by minority persons, females,
9    and persons with a disability;
10        (iii) the total number of businesses owned by minority
11    persons, females, and persons with a disability that were
12    utilized by the licensee;
13        (iv) the utilization of businesses owned by minority
14    persons, females, and persons with disabilities during the
15    preceding year; and
16        (v) the outreach efforts used by the licensee to
17    attract investors and businesses consisting of minority
18    persons, females, and persons with a disability.
19    (b) The Board shall forward a copy of each licensee's
20annual reports to the General Assembly no later than February 1
21of each year.
 
22    (230 ILCS 10/7.12 new)
23    Sec. 7.12. Issuance of new owners licenses.
24    (a) Except for the owners license issued to the Chicago
25Casino Development Authority, owners licenses newly authorized

 

 

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

 

 

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1Environmental Design standards. The provisions of this Section
2apply to a holder of an owners license, casino operator
3license, or electronic gaming license that (i) begins
4operations on or after January 1, 2017 or (ii) relocates its
5facilities on or after the effective date of this amendatory
6Act of the 100th General Assembly.
 
7    (230 ILCS 10/8)  (from Ch. 120, par. 2408)
8    Sec. 8. Suppliers licenses.
9    (a) The Board may issue a suppliers license to such
10persons, firms or corporations which apply therefor upon the
11payment of a non-refundable application fee set by the Board,
12upon a determination by the Board that the applicant is
13eligible for a suppliers license and upon payment of a $5,000
14annual license fee.
15    (b) The holder of a suppliers license is authorized to sell
16or lease, and to contract to sell or lease, gambling equipment
17and supplies to any licensee involved in the ownership or
18management of gambling operations.
19    (c) Gambling supplies and equipment may not be distributed
20unless supplies and equipment conform to standards adopted by
21rules of the Board.
22    (d) A person, firm or corporation is ineligible to receive
23a suppliers license if:
24        (1) the person has been convicted of a felony under the
25    laws of this State, any other state, or the United States;

 

 

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

 

 

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

 

 

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1riverboat, in the casino, or at the electronic gaming facility
2or removed from the riverboat, casino, or electronic gaming
3facility to a an on-shore facility owned by the holder of an
4owners license or electronic gaming license for repair.
5(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
698-756, eff. 7-16-14.)
 
7    (230 ILCS 10/9)  (from Ch. 120, par. 2409)
8    Sec. 9. Occupational licenses.
9    (a) The Board may issue an occupational license to an
10applicant upon the payment of a non-refundable fee set by the
11Board, upon a determination by the Board that the applicant is
12eligible for an occupational license and upon payment of an
13annual license fee in an amount to be established. To be
14eligible for an occupational license, an applicant must:
15        (1) be at least 21 years of age if the applicant will
16    perform any function involved in gaming by patrons. Any
17    applicant seeking an occupational license for a non-gaming
18    function shall be at least 18 years of age;
19        (2) not have been convicted of a felony offense, a
20    violation of Article 28 of the Criminal Code of 1961 or the
21    Criminal Code of 2012, or a similar statute of any other
22    jurisdiction;
23        (2.5) not have been convicted of a crime, other than a
24    crime described in item (2) of this subsection (a),
25    involving dishonesty or moral turpitude, except that the

 

 

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

 

 

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1any other state has been suspended, restricted or revoked, and,
2if so, for what period of time.
3    (c) Each applicant shall submit with his application, on
4forms provided by the Board, 2 sets of his fingerprints. The
5Board shall charge each applicant a fee set by the Department
6of State Police to defray the costs associated with the search
7and classification of fingerprints obtained by the Board with
8respect to the applicant's application. These fees shall be
9paid into the State Police Services Fund.
10    (d) The Board may in its discretion refuse an occupational
11license to any person: (1) who is unqualified to perform the
12duties required of such applicant; (2) who fails to disclose or
13states falsely any information called for in the application;
14(3) who has been found guilty of a violation of this Act or the
15Chicago Casino Development Authority Act or whose prior
16gambling related license or application therefor has been
17suspended, restricted, revoked or denied for just cause in any
18other state; or (4) for any other just cause.
19    (e) The Board may suspend, revoke or restrict any
20occupational licensee: (1) for violation of any provision of
21this Act; (2) for violation of any of the rules and regulations
22of the Board; (3) for any cause which, if known to the Board,
23would have disqualified the applicant from receiving such
24license; or (4) for default in the payment of any obligation or
25debt due to the State of Illinois; or (5) for any other just
26cause.

 

 

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1    (f) A person who knowingly makes a false statement on an
2application is guilty of a Class A misdemeanor.
3    (g) Any license issued pursuant to this Section shall be
4valid for a period of one year from the date of issuance.
5    (h) Nothing in this Act shall be interpreted to prohibit a
6licensed owner or electronic gaming licensee from entering into
7an agreement with a public community college or a school
8approved under the Private Business and Vocational Schools Act
9of 2012 for the training of any occupational licensee. Any
10training offered by such a school shall be in accordance with a
11written agreement between the licensed owner or electronic
12gaming licensee and the school.
13    (i) Any training provided for occupational licensees may be
14conducted either at the site of the gambling facility on the
15riverboat or at a school with which a licensed owner or
16electronic gaming licensee has entered into an agreement
17pursuant to subsection (h).
18(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
1997-1150, eff. 1-25-13.)
 
20    (230 ILCS 10/11)  (from Ch. 120, par. 2411)
21    Sec. 11. Conduct of gambling. Gambling may be conducted by
22licensed owners or licensed managers on behalf of the State
23aboard riverboats. Gambling may be conducted by electronic
24gaming licensees at electronic gaming facilities. Gambling may
25be conducted by a casino operator licensee at a casino.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Board.
2(Source: P.A. 96-1392, eff. 1-1-11.)
 
3    (230 ILCS 10/11.1)  (from Ch. 120, par. 2411.1)
4    Sec. 11.1. Collection of amounts owing under credit
5agreements. Notwithstanding any applicable statutory provision
6to the contrary, a licensed owner, licensed or manager,
7licensed casino operator, or electronic gaming licensee who
8extends credit to a riverboat gambling patron or an electronic
9gaming patron pursuant to Section 11 (a) (12) of this Act is
10expressly authorized to institute a cause of action to collect
11any amounts due and owing under the extension of credit, as
12well as the licensed owner's, licensed or manager's, licensed
13casino operator's, or electronic gaming licensee's costs,
14expenses and reasonable attorney's fees incurred in
15collection.
16(Source: P.A. 93-28, eff. 6-20-03.)
 
17    (230 ILCS 10/12)  (from Ch. 120, par. 2412)
18    Sec. 12. Admission tax; fees.
19    (a) A tax is hereby imposed upon admissions to riverboat
20and casino gambling facilities riverboats operated by licensed
21owners authorized pursuant to this Act and the Chicago Casino
22Development Authority Act. Until July 1, 2002, the rate is $2
23per person admitted. From July 1, 2002 until July 1, 2003, the
24rate is $3 per person admitted. From July 1, 2003 until August

 

 

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123, 2005 (the effective date of Public Act 94-673), for a
2licensee that admitted 1,000,000 persons or fewer in the
3previous calendar year, the rate is $3 per person admitted; for
4a licensee that admitted more than 1,000,000 but no more than
52,300,000 persons in the previous calendar year, the rate is $4
6per person admitted; and for a licensee that admitted more than
72,300,000 persons in the previous calendar year, the rate is $5
8per person admitted. Beginning on August 23, 2005 (the
9effective date of Public Act 94-673), for a licensee that
10admitted 1,000,000 persons or fewer in calendar year 2004, the
11rate is $2 per person admitted, and for all other licensees,
12including licensees that were not conducting gambling
13operations in 2004, the rate is $3 per person admitted. This
14admission tax is imposed upon the licensed owner conducting
15gambling.
16        (1) The admission tax shall be paid for each admission,
17    except that a person who exits a riverboat gambling
18    facility and reenters that riverboat gambling facility
19    within the same gaming day shall be subject only to the
20    initial admission tax.
21        (2) (Blank).
22        (3) The riverboat licensee may issue tax-free passes to
23    actual and necessary officials and employees of the
24    licensee or other persons actually working on the
25    riverboat.
26        (4) The number and issuance of tax-free passes is

 

 

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1    subject to the rules of the Board, and a list of all
2    persons to whom the tax-free passes are issued shall be
3    filed with the Board.
4    (a-5) A fee is hereby imposed upon admissions operated by
5licensed managers on behalf of the State pursuant to Section
67.3 at the rates provided in this subsection (a-5). For a
7licensee that admitted 1,000,000 persons or fewer in the
8previous calendar year, the rate is $3 per person admitted; for
9a licensee that admitted more than 1,000,000 but no more than
102,300,000 persons in the previous calendar year, the rate is $4
11per person admitted; and for a licensee that admitted more than
122,300,000 persons in the previous calendar year, the rate is $5
13per person admitted.
14        (1) The admission fee shall be paid for each admission.
15        (2) (Blank).
16        (3) The licensed manager may issue fee-free passes to
17    actual and necessary officials and employees of the manager
18    or other persons actually working on the riverboat.
19        (4) The number and issuance of fee-free passes is
20    subject to the rules of the Board, and a list of all
21    persons to whom the fee-free passes are issued shall be
22    filed with the Board.
23    (b) Except as provided in subsection (b-5), from From the
24tax imposed under subsection (a) and the fee imposed under
25subsection (a-5), a municipality shall receive from the State
26$1 for each person embarking on a riverboat docked within the

 

 

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

 

 

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

 

 

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1Board may require. Failure to submit either the payment or the
2return within the specified time may result in suspension or
3revocation of the electronic gaming license.
4    From the tax imposed under this subsection (c-5), a
5municipality other than the Village of Stickney or the City of
6Collinsville in which an electronic gaming facility is located,
7or if the electronic gaming facility is not located within a
8municipality, then the county in which the electronic gaming
9facility is located, except as otherwise provided in this
10Section, shall receive, subject to appropriation, $1 for each
11person who enters the electronic gaming facility. For each
12admission to the electronic gaming facility in excess of
131,500,000 in a year, from the tax imposed under this subsection
14(c-5), the county in which the electronic gaming facility is
15located shall receive, subject to appropriation, $0.30, which
16shall be in addition to any other moneys paid to the county
17under this Section.
18    From the tax imposed under this subsection (c-5) on an
19electronic gaming facility located in the Village of Stickney,
20$1 for each person who enters the electronic gaming facility
21shall be distributed as follows, subject to appropriation:
22$0.24 to the Village of Stickney, $0.49 to the Town of Cicero,
23$0.05 to the City of Berwyn, and $0.17 to the Stickney Public
24Health District, and $0.05 to the City of Bridgeview.
25    From the tax imposed under this subsection (c-5) on an
26electronic gaming facility located in the City of Collinsville,

 

 

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1$1 for each person who enters the electronic gaming facility
2shall be distributed as follows, subject to appropriation:
3$0.45 to the City of Alton, $0.45 to the City of East St.
4Louis, and $0.10 to the City of Collinsville.
5    After payments required under this subsection (c-5) have
6been made, all remaining amounts shall be deposited into the
7Education Assistance Fund.
8    (d) The Board shall administer and collect the admission
9tax imposed by this Section, to the extent practicable, in a
10manner consistent with the provisions of Sections 4, 5, 5a, 5b,
115c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
12Retailers' Occupation Tax Act and Section 3-7 of the Uniform
13Penalty and Interest Act.
14(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
 
15    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
16    Sec. 13. Wagering tax; rate; distribution.
17    (a) Until January 1, 1998, a tax is imposed on the adjusted
18gross receipts received from gambling games authorized under
19this Act at the rate of 20%.
20    (a-1) From January 1, 1998 until July 1, 2002, a privilege
21tax is imposed on persons engaged in the business of conducting
22riverboat gambling operations, based on the adjusted gross
23receipts received by a licensed owner from gambling games
24authorized under this Act at the following rates:
25        15% of annual adjusted gross receipts up to and

 

 

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1    including $25,000,000;
2        20% of annual adjusted gross receipts in excess of
3    $25,000,000 but not exceeding $50,000,000;
4        25% of annual adjusted gross receipts in excess of
5    $50,000,000 but not exceeding $75,000,000;
6        30% of annual adjusted gross receipts in excess of
7    $75,000,000 but not exceeding $100,000,000;
8        35% of annual adjusted gross receipts in excess of
9    $100,000,000.
10    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
11is imposed on persons engaged in the business of conducting
12riverboat gambling operations, other than licensed managers
13conducting riverboat gambling operations on behalf of the
14State, based on the adjusted gross receipts received by a
15licensed owner from gambling games authorized under this Act at
16the following rates:
17        15% of annual adjusted gross receipts up to and
18    including $25,000,000;
19        22.5% of annual adjusted gross receipts in excess of
20    $25,000,000 but not exceeding $50,000,000;
21        27.5% of annual adjusted gross receipts in excess of
22    $50,000,000 but not exceeding $75,000,000;
23        32.5% of annual adjusted gross receipts in excess of
24    $75,000,000 but not exceeding $100,000,000;
25        37.5% of annual adjusted gross receipts in excess of
26    $100,000,000 but not exceeding $150,000,000;

 

 

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

 

 

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1under this subsection (a-3) that are in addition to the amount
2of wagering taxes that would have been collected if the
3wagering tax rates under subsection (a-2) were in effect shall
4be paid into the Common School Fund.
5    The privilege tax imposed under this subsection (a-3) shall
6no longer be imposed beginning on the earlier of (i) July 1,
72005; (ii) the first date after June 20, 2003 that riverboat
8gambling operations are conducted pursuant to a dormant
9license; or (iii) the first day that riverboat gambling
10operations are conducted under the authority of an owners
11license that is in addition to the 10 owners licenses initially
12authorized under this Act. For the purposes of this subsection
13(a-3), the term "dormant license" means an owners license that
14is authorized by this Act under which no riverboat gambling
15operations are being conducted on June 20, 2003.
16    (a-4) Beginning on the first day on which the tax imposed
17under subsection (a-3) is no longer imposed and ending upon the
18imposition of the privilege tax under subsection (a-5) of this
19Section, a privilege tax is imposed on persons engaged in the
20business of conducting riverboat or casino gambling or
21electronic gaming operations, other than licensed managers
22conducting riverboat gambling operations on behalf of the
23State, based on the adjusted gross receipts received by a
24licensed owner from gambling games authorized under this Act at
25the following rates:
26        15% of annual adjusted gross receipts up to and

 

 

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

 

 

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1operations on behalf of the State, based on the adjusted gross
2receipts received by such licensee from the gambling games
3authorized under this Act. The privilege tax shall be the
4average of the privilege tax, in terms of dollar amounts,
5calculated pursuant to subsection (a-4) and subsection (a-6).
6    (a-5) Beginning on January 1 following the opening of the
7permanent casino at which gambling operations are conducted
8pursuant to the Chicago Casino Development Authority Act, a
9privilege tax is imposed on persons engaged in the business of
10conducting riverboat or casino gambling or electronic gaming
11operations, other than licensed managers conducting riverboat
12gambling operations on behalf of the State, based on the
13adjusted gross receipts received by such licensee from the
14gambling games authorized under this Act and the Chicago Casino
15Development Authority Act. The privilege tax for all gambling
16games other than table games, including, but not limited to,
17slot machines, video game of chance gambling, and electronic
18gambling games shall be at the following rates:
19        10% of annual adjusted gross receipts up to and
20    including $25,000,000;
21        17.5% of annual adjusted gross receipts in excess of
22    $25,000,000 but not exceeding $50,000,000;
23        22.5% of annual adjusted gross receipts in excess of
24    $50,000,000 but not exceeding $75,000,000;
25        27.5% of annual adjusted gross receipts in excess of
26    $75,000,000 but not exceeding $100,000,000;

 

 

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

 

 

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1    (a-6) From the effective date of this amendatory Act of the
2100th General Assembly until June 30, 2021, an owners licensee
3that conducted gambling operations prior to January 1, 2011
4shall receive a dollar-for-dollar credit against the tax
5imposed under this Section for any renovation or construction
6costs paid by the owners licensee, but in no event shall the
7credit exceed $2,000,000.
8    Additionally, from the effective date of this amendatory
9Act of the 100th General Assembly until December 31, 2020, an
10owners licensee that (i) is located within 15 miles of the
11Missouri border, and (ii) has at least 3 riverboats, casinos,
12or their equivalent within a 45-mile radius, may be authorized
13to relocate to a new location with the approval of both the
14unit of local government designated as the home dock and the
15Board, so long as the new location is within the same unit of
16local government and no more than 3 miles away from its
17original location. Such owners licensee shall receive a credit
18against the tax imposed under this Section equal to 8% of the
19total project costs, as approved by the Board, for any
20renovation or construction costs paid by the owners licensee
21for the construction of the new facility, provided that the new
22facility is operational by July 1, 2020. In determining whether
23or not to approve a relocation, the Board must consider the
24extent to which the relocation will diminish the gaming
25revenues received by other Illinois gaming facilities.
26    (a-7) Beginning in the initial adjustment year and through

 

 

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1the final adjustment year, if the total obligation imposed
2pursuant to either subsection (a-5) or (a-6) will result in an
3owners licensee receiving less after-tax adjusted gross
4receipts than it received in calendar year 2016, then the total
5amount of privilege taxes that the owners licensee is required
6to pay for that calendar year shall be reduced to the extent
7necessary so that the after-tax adjusted gross receipts in that
8calendar year equals the after-tax adjusted gross receipts in
9calendar year 2016, but the privilege tax reduction shall not
10exceed the annual adjustment cap. If pursuant to this
11subsection (a-7), the total obligation imposed pursuant to
12either subsection (a-5) or (a-6) shall be reduced, then the
13owners licensee shall not receive a refund from the State at
14the end of the subject calendar year but instead shall be able
15to apply that amount as a credit against any payments it owes
16to the State in the following calendar year to satisfy its
17total obligation under either subsection (a-5) or (a-6). The
18credit for the final adjustment year shall occur in the
19calendar year following the final adjustment year.
20    If an owners licensee that conducted gambling operations
21prior to January 1, 2017 expands its riverboat or casino,
22including, but not limited to, with respect to its gaming
23floor, additional non-gaming amenities such as restaurants,
24bars, and hotels and other additional facilities, and incurs
25construction and other costs related to such expansion from the
26effective date of this amendatory Act of the 100th General

 

 

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

 

 

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

 

 

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1the initial adjustment year, not including the initial
2adjustment year, and as may be extended further as described in
3this subsection (a-7).
4    "After-tax adjusted gross receipts" means, for calendar
5year 2016, the adjusted gross receipts less privilege taxes
6paid to the State and for subsequent calendar years, the
7adjusted gross receipts less privilege taxes paid to the State,
8then divided by the owners licensee's average number of gaming
9positions operating in that calendar year and then multiplied
10by the owners licensee's average number of gaming positions
11operating in calendar year 2016.
12    "Annual adjustment cap" means 3% of adjusted gross receipts
13in a particular calendar year, and as may be increased further
14as otherwise described in this subsection (a-7).
15    (a-8) Riverboat gambling operations conducted by a
16licensed manager on behalf of the State are not subject to the
17tax imposed under this Section.
18    (a-9) Beginning on January 1, 2018, the calculation of
19gross receipts or adjusted gross receipts, for the purposes of
20this Section, for a riverboat, casino, or electronic gaming
21facility shall not include the dollar amount of non-cashable
22vouchers, coupons, and electronic promotions redeemed by
23wagerers upon the riverboat, in the casino, or in the
24electronic gaming facility up to and including an amount not to
25exceed 30% of a riverboat casino or electronic gaming
26facility's adjusted gross receipts.

 

 

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1    The Illinois Gaming Board shall submit to the General
2Assembly a comprehensive report no later than March 31, 2021
3detailing, at a minimum, the effect of removing non-cashable
4vouchers, coupons, and electronic promotions from this
5calculation on net gaming revenues to the State in calendar
6years 2018 through 2020, the increase or reduction in wagerers
7as a result of removing non-cashable vouchers, coupons, and
8electronic promotions from this calculation, the effect of the
9tax rates in subsection (a-5) on net gaming revenues to the
10State, and proposed modifications to the calculation.
11    (a-10) The taxes imposed by this Section shall be paid by
12the licensed owner or the electronic gaming licensee to the
13Board not later than 5:00 o'clock p.m. of the day after the day
14when the wagers were made.
15    (a-15) If the privilege tax imposed under subsection (a-3)
16is no longer imposed pursuant to item (i) of the last paragraph
17of subsection (a-3), then by June 15 of each year, each owners
18licensee, other than an owners licensee that admitted 1,000,000
19persons or fewer in calendar year 2004, must, in addition to
20the payment of all amounts otherwise due under this Section,
21pay to the Board a reconciliation payment in the amount, if
22any, by which the licensed owner's base amount exceeds the
23amount of net privilege tax paid by the licensed owner to the
24Board in the then current State fiscal year. A licensed owner's
25net privilege tax obligation due for the balance of the State
26fiscal year shall be reduced up to the total of the amount paid

 

 

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

 

 

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1    For purposes of this subsection (a-15):
2    "Act of God" means an incident caused by the operation of
3an extraordinary force that cannot be foreseen, that cannot be
4avoided by the exercise of due care, and for which no person
5can be held liable.
6    "Base amount" means the following:
7        For a riverboat in Alton, $31,000,000.
8        For a riverboat in East Peoria, $43,000,000.
9        For the Empress riverboat in Joliet, $86,000,000.
10        For a riverboat in Metropolis, $45,000,000.
11        For the Harrah's riverboat in Joliet, $114,000,000.
12        For a riverboat in Aurora, $86,000,000.
13        For a riverboat in East St. Louis, $48,500,000.
14        For a riverboat in Elgin, $198,000,000.
15    "Dormant license" has the meaning ascribed to it in
16subsection (a-3).
17    "Net privilege tax" means all privilege taxes paid by a
18licensed owner to the Board under this Section, less all
19payments made from the State Gaming Fund pursuant to subsection
20(b) of this Section.
21    The changes made to this subsection (a-15) by Public Act
2294-839 are intended to restate and clarify the intent of Public
23Act 94-673 with respect to the amount of the payments required
24to be made under this subsection by an owners licensee to the
25Board.
26    (b) Until January 1, 1998, 25% of the tax revenue deposited

 

 

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1in the State Gaming Fund under this Section shall be paid,
2subject to appropriation by the General Assembly, to the unit
3of local government which is designated as the home dock of the
4riverboat. Beginning January 1, 1998, from the tax revenue from
5riverboat or casino gambling deposited in the State Gaming Fund
6under this Section, an amount equal to 5% of adjusted gross
7receipts generated by a riverboat or a casino other than a
8riverboat designated in paragraph (3) or (4) of subsection
9(e-5) of Section 7, shall be paid monthly, subject to
10appropriation by the General Assembly, to the unit of local
11government in which the casino is located or that is designated
12as the home dock of the riverboat. From the tax revenue
13deposited in the State Gaming Fund pursuant to riverboat or
14casino gambling operations conducted by a licensed manager on
15behalf of the State, an amount equal to 5% of adjusted gross
16receipts generated pursuant to those riverboat or casino
17gambling operations shall be paid monthly, subject to
18appropriation by the General Assembly, to the unit of local
19government that is designated as the home dock of the riverboat
20upon which those riverboat gambling operations are conducted or
21in which the casino is located. From the tax revenue from
22riverboat or casino gambling deposited in the State Gaming Fund
23under this Section, an amount equal to 5% of the adjusted gross
24receipts generated by a riverboat designated in paragraph (3)
25of subsection (e-5) of Section 7 shall be divided and remitted
26monthly, subject to appropriation, as follows: 50% to Waukegan,

 

 

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125% to Park City, and 25% to North Chicago. From the tax
2revenue from riverboat or casino gambling deposited in the
3State Gaming Fund under this Section, an amount equal to 5% of
4the adjusted gross receipts generated by a riverboat designated
5in paragraph (4) of subsection (e-5) of Section 7 shall be
6remitted monthly, subject to appropriation, as follows: 70% to
7the City of Rockford, 5% to the City of Loves Park, 5% to the
8Village of Machesney, and 20% to Winnebago County. Units of
9local government may refund any portion of the payment that
10they receive pursuant to this subsection (b) to the riverboat
11or casino.
12    (b-5) Beginning on the effective date of this amendatory
13Act of the 100th General Assembly, from the tax revenue
14deposited in the State Gaming Fund under this Section, an
15amount equal to 3% of adjusted gross receipts generated by each
16electronic gaming facility located outside Madison County
17shall be paid monthly, subject to appropriation by the General
18Assembly, to a municipality other than the Village of Stickney
19in which each electronic gaming facility is located or, if the
20electronic gaming facility is not located within a
21municipality, to the county in which the electronic gaming
22facility is located, except as otherwise provided in this
23Section. From the tax revenue deposited in the State Gaming
24Fund under this Section, an amount equal to 3% of adjusted
25gross receipts generated by an electronic gaming facility
26located in the Village of Stickney shall be paid monthly,

 

 

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1subject to appropriation by the General Assembly, as follows:
225% to the Village of Stickney, 5% to the City of Berwyn, 50%
3to the Town of Cicero, and 20% to the Stickney Public Health
4District.
5    From the tax revenue deposited in the State Gaming Fund
6under this Section, an amount equal to 5% of adjusted gross
7receipts generated by an electronic gaming facility located in
8the City of Collinsville shall be paid monthly, subject to
9appropriation by the General Assembly, as follows: 45% to the
10City of Alton, 45% to the City of East St. Louis, and 10% to the
11City of Collinsville.
12    Municipalities and counties may refund any portion of the
13payment that they receive pursuant to this subsection (b-5) to
14the electronic gaming facility.
15    (b-6) Beginning on the effective date of this amendatory
16Act of the 100th General Assembly, from the tax revenue
17deposited in the State Gaming Fund under this Section, an
18amount equal to 2% of adjusted gross receipts generated by an
19electronic gaming facility located outside Madison County
20shall be paid monthly, subject to appropriation by the General
21Assembly, to the county in which the electronic gaming facility
22is located for the purposes of its criminal justice system or
23health care system.
24    Counties may refund any portion of the payment that they
25receive pursuant to this subsection (b-6) to the electronic
26gaming facility.

 

 

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

 

 

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1    (c-5) Before May 26, 2006 (the effective date of Public Act
294-804) and beginning on the effective date of this amendatory
3Act of the 95th General Assembly, unless any organization
4licensee under the Illinois Horse Racing Act of 1975 begins to
5operate a slot machine or video game of chance under the
6Illinois Horse Racing Act of 1975 or this Act, after the
7payments required under subsections (b) and (c) have been made,
8an amount equal to 15% of the adjusted gross receipts of (1) an
9owners licensee that relocates pursuant to Section 11.2, (2) an
10owners licensee conducting riverboat gambling operations
11pursuant to an owners license that is initially issued after
12June 25, 1999, or (3) the first riverboat gambling operations
13conducted by a licensed manager on behalf of the State under
14Section 7.3, whichever comes first, shall be paid from the
15State Gaming Fund into the Horse Racing Equity Fund.
16    (c-10) Each year the General Assembly shall appropriate
17from the General Revenue Fund to the Education Assistance Fund
18an amount equal to the amount paid into the Horse Racing Equity
19Fund pursuant to subsection (c-5) in the prior calendar year.
20    (c-15) After the payments required under subsections (b),
21(c), and (c-5) have been made, an amount equal to 2% of the
22adjusted gross receipts of (1) an owners licensee that
23relocates pursuant to Section 11.2, (2) an owners licensee
24conducting riverboat gambling operations pursuant to an owners
25license that is initially issued after June 25, 1999, or (3)
26the first riverboat gambling operations conducted by a licensed

 

 

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1manager on behalf of the State under Section 7.3, whichever
2comes first, shall be paid, subject to appropriation from the
3General Assembly, from the State Gaming Fund to each home rule
4county with a population of over 3,000,000 inhabitants for the
5purpose of enhancing the county's criminal justice system.
6    (c-20) Each year the General Assembly shall appropriate
7from the General Revenue Fund to the Education Assistance Fund
8an amount equal to the amount paid to each home rule county
9with a population of over 3,000,000 inhabitants pursuant to
10subsection (c-15) in the prior calendar year.
11    (c-25) On July 1, 2013 and each July 1 thereafter,
12$1,600,000 shall be transferred from the State Gaming Fund to
13the Chicago State University Education Improvement Fund.
14    (c-30) On July 1, 2013 or as soon as possible thereafter,
15$92,000,000 shall be transferred from the State Gaming Fund to
16the School Infrastructure Fund and $23,000,000 shall be
17transferred from the State Gaming Fund to the Horse Racing
18Equity Fund.
19    (c-35) Beginning on July 1, 2013, in addition to any amount
20transferred under subsection (c-30) of this Section,
21$5,530,000 shall be transferred monthly from the State Gaming
22Fund to the School Infrastructure Fund.
23    (d) From time to time, the Board shall transfer the
24remainder of the funds generated by this Act into the Education
25Assistance Fund, created by Public Act 86-0018, of the State of
26Illinois.

 

 

SB0007 Engrossed- 440 -LRB100 06307 AMC 16345 b

1    (e) Nothing in this Act shall prohibit the unit of local
2government designated as the home dock of the riverboat from
3entering into agreements with other units of local government
4in this State or in other states to share its portion of the
5tax revenue.
6    (f) To the extent practicable, the Board shall administer
7and collect the wagering taxes imposed by this Section in a
8manner consistent with the provisions of Sections 4, 5, 5a, 5b,
95c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
10Retailers' Occupation Tax Act and Section 3-7 of the Uniform
11Penalty and Interest Act.
12(Source: P.A. 98-18, eff. 6-7-13.)
 
13    (230 ILCS 10/14)  (from Ch. 120, par. 2414)
14    Sec. 14. Licensees - Records - Reports - Supervision.
15    (a) Licensed owners and electronic gaming licensees A
16licensed owner shall keep his books and records so as to
17clearly show the following:
18    (1) The amount received daily from admission fees.
19    (2) The total amount of gross receipts.
20    (3) The total amount of the adjusted gross receipts.
21    (b) Licensed owners and electronic gaming licensees The
22licensed owner shall furnish to the Board reports and
23information as the Board may require with respect to its
24activities on forms designed and supplied for such purpose by
25the Board.

 

 

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1    (c) The books and records kept by a licensed owner as
2provided by this Section are public records and the
3examination, publication, and dissemination of the books and
4records are governed by the provisions of The Freedom of
5Information Act.
6(Source: P.A. 86-1029.)
 
7    (230 ILCS 10/15)  (from Ch. 120, par. 2415)
8    Sec. 15. Audit of Licensee Operations. Annually, the
9licensed owner, or manager, or electronic gaming licensee shall
10transmit to the Board an audit of the financial transactions
11and condition of the licensee's or manager's total operations.
12Additionally, within 90 days after the end of each quarter of
13each fiscal year, the licensed owner, or manager, or electronic
14gaming licensee shall transmit to the Board a compliance report
15on engagement procedures determined by the Board. All audits
16and compliance engagements shall be conducted by certified
17public accountants selected by the Board. Each certified public
18accountant must be registered in the State of Illinois under
19the Illinois Public Accounting Act. The compensation for each
20certified public accountant shall be paid directly by the
21licensed owner, or manager, or electronic gaming licensee to
22the certified public accountant.
23(Source: P.A. 96-1392, eff. 1-1-11.)
 
24    (230 ILCS 10/16)  (from Ch. 120, par. 2416)

 

 

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1    Sec. 16. Annual Report of Board. The Board shall make an
2annual report to the Governor, for the period ending December
331 of each year. Included in the report shall be an account of
4the Board actions, its financial position and results of
5operation under this Act and the Chicago Casino Development
6Authority Act, the practical results attained under this Act
7and the Chicago Casino Development Authority Act and any
8recommendations for legislation which the Board deems
9advisable.
10(Source: P.A. 86-1029.)
 
11    (230 ILCS 10/17)  (from Ch. 120, par. 2417)
12    Sec. 17. Administrative Procedures. The Illinois
13Administrative Procedure Act shall apply to all administrative
14rules and procedures of the Board under this Act, the Chicago
15Casino Development Authority Act, and or the Video Gaming Act,
16except that: (1) subsection (b) of Section 5-10 of the Illinois
17Administrative Procedure Act does not apply to final orders,
18decisions and opinions of the Board; (2) subsection (a) of
19Section 5-10 of the Illinois Administrative Procedure Act does
20not apply to forms established by the Board for use under this
21Act, the Chicago Casino Development Authority Act, and or the
22Video Gaming Act; (3) the provisions of Section 10-45 of the
23Illinois Administrative Procedure Act regarding proposals for
24decision are excluded under this Act, the Chicago Casino
25Development Authority Act, and or the Video Gaming Act; and (4)

 

 

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1the provisions of subsection (d) of Section 10-65 of the
2Illinois Administrative Procedure Act do not apply so as to
3prevent summary suspension of any license pending revocation or
4other action, which suspension shall remain in effect unless
5modified by the Board or unless the Board's decision is
6reversed on the merits upon judicial review.
7(Source: P.A. 96-34, eff. 7-13-09.)
 
8    (230 ILCS 10/17.1)  (from Ch. 120, par. 2417.1)
9    Sec. 17.1. Judicial Review.
10    (a) Jurisdiction and venue for the judicial review of a
11final order of the Board relating to licensed owners,
12suppliers, electronic gaming licensees, and or special event
13licenses is vested in the Appellate Court of the judicial
14district in which Sangamon County is located. A petition for
15judicial review of a final order of the Board must be filed in
16the Appellate Court, within 35 days from the date that a copy
17of the decision sought to be reviewed was served upon the party
18affected by the decision.
19    (b) Judicial review of all other final orders of the Board
20shall be conducted in accordance with the Administrative Review
21Law.
22(Source: P.A. 88-1.)
 
23    (230 ILCS 10/18)  (from Ch. 120, par. 2418)
24    Sec. 18. Prohibited Activities - Penalty.

 

 

SB0007 Engrossed- 444 -LRB100 06307 AMC 16345 b

1    (a) A person is guilty of a Class A misdemeanor for doing
2any of the following:
3        (1) Conducting gambling where wagering is used or to be
4    used without a license issued by the Board.
5        (2) Conducting gambling where wagering is permitted
6    other than in the manner specified by Section 11.
7    (b) A person is guilty of a Class B misdemeanor for doing
8any of the following:
9        (1) permitting a person under 21 years to make a wager;
10    or
11        (2) violating paragraph (12) of subsection (a) of
12    Section 11 of this Act.
13    (c) A person wagering or accepting a wager at any location
14outside the riverboat, casino, or electronic gaming facility in
15violation of paragraph is subject to the penalties in
16paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
17Criminal Code of 2012 is subject to the penalties provided in
18that Section.
19    (d) A person commits a Class 4 felony and, in addition,
20shall be barred for life from gambling operations riverboats
21under the jurisdiction of the Board, if the person does any of
22the following:
23        (1) Offers, promises, or gives anything of value or
24    benefit to a person who is connected with a riverboat or
25    casino owner or electronic gaming licensee, including, but
26    not limited to, an officer or employee of a licensed owner,

 

 

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

 

 

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

 

 

SB0007 Engrossed- 447 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

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

 

 

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1equipment used in the conduct of unauthorized gambling games.
2(Source: P.A. 86-1029.)
 
3    (230 ILCS 10/21)  (from Ch. 120, par. 2421)
4    Sec. 21. Limitation on taxation of licensees. Licensees
5shall not be subjected to any excise tax, license tax, permit
6tax, privilege tax, occupation tax or excursion tax which is
7imposed exclusively upon the licensee by the State or any
8political subdivision thereof, except as provided in this Act
9or the Chicago Casino Development Authority Act.
10(Source: P.A. 86-1029.)
 
11    (230 ILCS 10/23)  (from Ch. 120, par. 2423)
12    Sec. 23. The State Gaming Fund. On or after the effective
13date of this Act, except as provided for payments into the
14Horse Racing Equity Trust Fund under subsection (a) of Section
157, all of the fees and taxes collected pursuant to this Act or
16the Chicago Casino Development Authority Act shall be deposited
17into the State Gaming Fund, a special fund in the State
18Treasury, which is hereby created. The adjusted gross receipts
19of any riverboat gambling operations conducted by a licensed
20manager on behalf of the State remaining after the payment of
21the fees and expenses of the licensed manager shall be
22deposited into the State Gaming Fund. Fines and penalties
23collected pursuant to this Act or the Chicago Casino
24Development Authority Act shall be deposited into the Education

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    offering the jackpots.
2        (11) The payment of any common progressive jackpot
3    offered on a wide area progressive system shall be
4    administered by the wide area progressive system provider,
5    and the provider shall have primary liability for payment
6    of any common progressive jackpot the person administers.
7        (12) A wide area progressive system provider shall
8    comply with the following:
9            (A) A reserve shall be established and maintained
10        by the provider of the wide area progressive system in
11        an amount of not less than the sum of the following
12        amounts:
13                (i) the present value of the aggregate
14            remaining balances owed on all jackpots previously
15            won by patrons on the wide area progressive system;
16                (ii) the present value of the amount currently
17            reflected on the jackpot meters of the wide area
18            progressive system; and
19                (iii) the present value of one additional
20            reset of the wide area progressive system.
21            (B) The reserve shall continue to be maintained
22        until all payments owed to winners of the common
23        progressive jackpots have been made.
24            (C) For common progressive jackpots disbursed in
25        periodic payments, any qualified investment shall be
26        purchased within 90 days following notice of the win of

 

 

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

 

 

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

 

 

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1purchased by a player.
2    "Distributor" means an individual, partnership,
3corporation, or limited liability company licensed under this
4Act to buy, sell, lease, or distribute video gaming terminals
5or major components or parts of video gaming terminals to or
6from terminal operators.
7    "Electronic card" means a card purchased from a licensed
8establishment, licensed fraternal establishment, licensed
9veterans establishment, or licensed truck stop establishment
10for use in that establishment as a substitute for cash in the
11conduct of gaming on a video gaming terminal.
12    "Electronic voucher" means a voucher printed by an
13electronic video game machine that is redeemable in the
14licensed establishment for which it was issued.
15    "Terminal operator" means an individual, partnership,
16corporation, or limited liability company that is licensed
17under this Act and that owns, services, and maintains video
18gaming terminals for placement in licensed establishments,
19licensed truck stop establishments, licensed fraternal
20establishments, or licensed veterans establishments.
21    "Licensed technician" means an individual who is licensed
22under this Act to repair, service, and maintain video gaming
23terminals.
24    "Licensed terminal handler" means a person, including but
25not limited to an employee or independent contractor working
26for a manufacturer, distributor, supplier, technician, or

 

 

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

 

 

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

 

 

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198-587 are declarative of existing law.
2    "Licensed fraternal establishment" means the location
3where a qualified fraternal organization that derives its
4charter from a national fraternal organization regularly
5meets.
6    "Licensed veterans establishment" means the location where
7a qualified veterans organization that derives its charter from
8a national veterans organization regularly meets.
9    "Licensed truck stop establishment" means a facility (i)
10that is at least a 3-acre facility with a convenience store,
11(ii) with separate diesel islands for fueling commercial motor
12vehicles, (iii) that sells at retail more than 10,000 gallons
13of diesel or biodiesel fuel per month, and (iv) with parking
14spaces for commercial motor vehicles. "Commercial motor
15vehicles" has the same meaning as defined in Section 18b-101 of
16the Illinois Vehicle Code. The requirement of item (iii) of
17this paragraph may be met by showing that estimated future
18sales or past sales average at least 10,000 gallons per month.
19(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
2098-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
217-16-14.)
 
22    (230 ILCS 40/20)
23    Sec. 20. Direct dispensing of receipt tickets only. A video
24gaming terminal may not directly dispense coins, cash, tokens,
25or any other article of exchange or value except for receipt

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        (E) When an individual or his or her spouse furnishes
2    5% or more of the capital, whether in cash, goods, or
3    services, for the operation of any business, association,
4    or organization during any calendar year; or
5        (F) When, with respect to a limited liability company,
6    an individual or his or her spouse is a member, or the
7    individual or his or her spouse is a holder, directly or
8    beneficially, of 5% or more of the membership interest of
9    the limited liability company.
10    For purposes of this subsection (g), "individual" includes
11all individuals or their spouses whose combined interest would
12qualify as a substantial interest under this subsection (g) and
13whose activities with respect to an organization, association,
14or business are so closely aligned or coordinated as to
15constitute the activities of a single entity.
16    (h) Location restriction. A licensed establishment,
17licensed truck stop establishment, licensed fraternal
18establishment, or licensed veterans establishment that is (i)
19located within 1,000 feet of a facility operated by an
20organization licensee licensed under the Illinois Horse Racing
21Act of 1975 or the home dock of a riverboat licensed under the
22Illinois Riverboat Gambling Act or (ii) located within 100 feet
23of a school or a place of worship under the Religious
24Corporation Act, is ineligible to operate a video gaming
25terminal. The location restrictions in this subsection (h) do
26not apply if (A) a facility operated by an organization

 

 

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

 

 

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

 

 

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1and equally applicable to the activities of any licensee under
2this Act.
3(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
4eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
5    (230 ILCS 40/45)
6    Sec. 45. Issuance of license.
7    (a) The burden is upon each applicant to demonstrate his
8suitability for licensure. Each video gaming terminal
9manufacturer, distributor, supplier, operator, handler,
10licensed establishment, licensed truck stop establishment,
11licensed fraternal establishment, and licensed veterans
12establishment shall be licensed by the Board. The Board may
13issue or deny a license under this Act to any person pursuant
14to the same criteria set forth in Section 9 of the Illinois
15Riverboat Gambling Act.
16    (a-5) The Board shall not grant a license to a person who
17has facilitated, enabled, or participated in the use of
18coin-operated devices for gambling purposes or who is under the
19significant influence or control of such a person. For the
20purposes of this Act, "facilitated, enabled, or participated in
21the use of coin-operated amusement devices for gambling
22purposes" means that the person has been convicted of any
23violation of Article 28 of the Criminal Code of 1961 or the
24Criminal Code of 2012. If there is pending legal action against
25a person for any such violation, then the Board shall delay the

 

 

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

 

 

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

 

 

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

 

 

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1(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
298-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
3    (230 ILCS 40/79)
4    Sec. 79. Investigators. Investigators appointed by the
5Board pursuant to the powers conferred upon the Board by
6paragraph (20.6) of subsection (c) of Section 5 of the Illinois
7Riverboat Gambling Act and Section 80 of this Act shall have
8authority to conduct investigations, searches, seizures,
9arrests, and other duties imposed under this Act and the
10Illinois Riverboat Gambling Act, as deemed necessary by the
11Board. These investigators have and may exercise all of the
12rights and powers of peace officers, provided that these powers
13shall be (1) limited to offenses or violations occurring or
14committed in connection with conduct subject to this Act,
15including, but not limited to, the manufacture, distribution,
16supply, operation, placement, service, maintenance, or play of
17video gaming terminals and the distribution of profits and
18collection of revenues resulting from such play, and (2)
19exercised, to the fullest extent practicable, in cooperation
20with the local police department of the applicable municipality
21or, if these powers are exercised outside the boundaries of an
22incorporated municipality or within a municipality that does
23not have its own police department, in cooperation with the
24police department whose jurisdiction encompasses the
25applicable locality.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0007 Engrossed- 480 -LRB100 06307 AMC 16345 b

1to persons without the State, as may be permitted by law. A
2person who, prior to June 1, 2008 (the effective date of Public
3Act 95-634), is a holder of a first-class wine-maker's license
4and annually produces more than 25,000 gallons of its own wine
5and who distributes its wine to licensed retailers shall cease
6this practice on or before July 1, 2008 in compliance with
7Public Act 95-634.
8    Class 7. A second-class wine-maker's license shall allow
9the manufacture of between 50,000 and 150,000 gallons of wine
10per year, and the storage and sale of such wine to distributors
11in this State and to persons without the State, as may be
12permitted by law. A person who, prior to June 1, 2008 (the
13effective date of Public Act 95-634), is a holder of a
14second-class wine-maker's license and annually produces more
15than 25,000 gallons of its own wine and who distributes its
16wine to licensed retailers shall cease this practice on or
17before July 1, 2008 in compliance with Public Act 95-634.
18    Class 8. A limited wine-manufacturer may make sales and
19deliveries not to exceed 40,000 gallons of wine per year to
20distributors, and to non-licensees in accordance with the
21provisions of this Act.
22    Class 9. A craft distiller license shall allow the
23manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
24gallons of spirits by distillation per year and the storage of
25such spirits. If a craft distiller licensee, including a craft
26distiller licensee who holds more than one craft distiller

 

 

SB0007 Engrossed- 481 -LRB100 06307 AMC 16345 b

1license, is not affiliated with any other manufacturer of
2spirits, then the craft distiller licensee may sell such
3spirits to distributors in this State and up to 2,500 gallons
4of such spirits to non-licensees to the extent permitted by any
5exemption approved by the Commission pursuant to Section 6-4 of
6this Act. A craft distiller license holder may store such
7spirits at a non-contiguous licensed location, but at no time
8shall a craft distiller license holder directly or indirectly
9produce in the aggregate more than 100,000 gallons of spirits
10per year.
11    A craft distiller licensee may hold more than one craft
12distiller's license. However, a craft distiller that holds more
13than one craft distiller license shall not manufacture, in the
14aggregate, more than 100,000 gallons of spirits by distillation
15per year and shall not sell, in the aggregate, more than 2,500
16gallons of such spirits to non-licensees in accordance with an
17exemption approved by the State Commission pursuant to Section
186-4 of this Act.
19    Any craft distiller licensed under this Act who on July 28,
202010 (the effective date of Public Act 96-1367) was licensed as
21a distiller and manufactured no more spirits than permitted by
22this Section shall not be required to pay the initial licensing
23fee.
24    Class 10. A class 1 brewer license, which may only be
25issued to a licensed brewer or licensed non-resident dealer,
26shall allow the manufacture of up to 930,000 gallons of beer

 

 

SB0007 Engrossed- 482 -LRB100 06307 AMC 16345 b

1per year provided that the class 1 brewer licensee does not
2manufacture more than a combined 930,000 gallons of beer per
3year and is not a member of or affiliated with, directly or
4indirectly, a manufacturer that produces more than 930,000
5gallons of beer per year or any other alcoholic liquor. A class
61 brewer licensee may make sales and deliveries to importing
7distributors and distributors and to retail licensees in
8accordance with the conditions set forth in paragraph (18) of
9subsection (a) of Section 3-12 of this Act.
10    Class 11. A class 2 brewer license, which may only be
11issued to a licensed brewer or licensed non-resident dealer,
12shall allow the manufacture of up to 3,720,000 gallons of beer
13per year provided that the class 2 brewer licensee does not
14manufacture more than a combined 3,720,000 gallons of beer per
15year and is not a member of or affiliated with, directly or
16indirectly, a manufacturer that produces more than 3,720,000
17gallons of beer per year or any other alcoholic liquor. A class
182 brewer licensee may make sales and deliveries to importing
19distributors and distributors, but shall not make sales or
20deliveries to any other licensee. If the State Commission
21provides prior approval, a class 2 brewer licensee may annually
22transfer up to 3,720,000 gallons of beer manufactured by that
23class 2 brewer licensee to the premises of a licensed class 2
24brewer wholly owned and operated by the same licensee.
25    (a-1) A manufacturer which is licensed in this State to
26make sales or deliveries of alcoholic liquor to licensed

 

 

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1distributors or importing distributors and which enlists
2agents, representatives, or individuals acting on its behalf
3who contact licensed retailers on a regular and continual basis
4in this State must register those agents, representatives, or
5persons acting on its behalf with the State Commission.
6    Registration of agents, representatives, or persons acting
7on behalf of a manufacturer is fulfilled by submitting a form
8to the Commission. The form shall be developed by the
9Commission and shall include the name and address of the
10applicant, the name and address of the manufacturer he or she
11represents, the territory or areas assigned to sell to or
12discuss pricing terms of alcoholic liquor, and any other
13questions deemed appropriate and necessary. All statements in
14the forms required to be made by law or by rule shall be deemed
15material, and any person who knowingly misstates any material
16fact under oath in an application is guilty of a Class B
17misdemeanor. Fraud, misrepresentation, false statements,
18misleading statements, evasions, or suppression of material
19facts in the securing of a registration are grounds for
20suspension or revocation of the registration. The State
21Commission shall post a list of registered agents on the
22Commission's website.
23    (b) A distributor's license shall allow the wholesale
24purchase and storage of alcoholic liquors and sale of alcoholic
25liquors to licensees in this State and to persons without the
26State, as may be permitted by law. No person licensed as a

 

 

SB0007 Engrossed- 484 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 485 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 486 -LRB100 06307 AMC 16345 b

1Act or evidence that the applicant is registered under Section
22a of the Retailers' Occupation Tax Act, (B) a current, valid
3exemption identification number issued under Section 1g of the
4Retailers' Occupation Tax Act, and a certification to the
5Commission that the purchase of alcoholic liquors will be a
6tax-exempt purchase, or (C) a statement that the applicant is
7not registered under Section 2a of the Retailers' Occupation
8Tax Act, does not hold a resale number under Section 2c of the
9Retailers' Occupation Tax Act, and does not hold an exemption
10number under Section 1g of the Retailers' Occupation Tax Act,
11in which event the Commission shall set forth on the special
12event retailer's license a statement to that effect; (ii)
13submit with the application proof satisfactory to the State
14Commission that the applicant will provide dram shop liability
15insurance in the maximum limits; and (iii) show proof
16satisfactory to the State Commission that the applicant has
17obtained local authority approval.
18    (f) A railroad license shall permit the licensee to import
19alcoholic liquors into this State from any point in the United
20States outside this State and to store such alcoholic liquors
21in this State; to make wholesale purchases of alcoholic liquors
22directly from manufacturers, foreign importers, distributors
23and importing distributors from within or outside this State;
24and to store such alcoholic liquors in this State; provided
25that the above powers may be exercised only in connection with
26the importation, purchase or storage of alcoholic liquors to be

 

 

SB0007 Engrossed- 487 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 488 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 489 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 490 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 491 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 492 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 493 -LRB100 06307 AMC 16345 b

1    (n) A brew pub license shall allow the licensee to only (i)
2manufacture up to 155,000 gallons of beer per year only on the
3premises specified in the license, (ii) make sales of the beer
4manufactured on the premises or, with the approval of the
5Commission, beer manufactured on another brew pub licensed
6premises that is wholly owned and operated by the same licensee
7to importing distributors, distributors, and to non-licensees
8for use and consumption, (iii) store the beer upon the
9premises, (iv) sell and offer for sale at retail from the
10licensed premises for off-premises consumption no more than
11155,000 gallons per year so long as such sales are only made
12in-person, (v) sell and offer for sale at retail for use and
13consumption on the premises specified in the license any form
14of alcoholic liquor purchased from a licensed distributor or
15importing distributor, and (vi) with the prior approval of the
16Commission, annually transfer no more than 155,000 gallons of
17beer manufactured on the premises to a licensed brew pub wholly
18owned and operated by the same licensee.
19    A brew pub licensee shall not under any circumstance sell
20or offer for sale beer manufactured by the brew pub licensee to
21retail licensees.
22    A person who holds a class 2 brewer license may
23simultaneously hold a brew pub license if the class 2 brewer
24(i) does not, under any circumstance, sell or offer for sale
25beer manufactured by the class 2 brewer to retail licensees;
26(ii) does not hold more than 3 brew pub licenses in this State;

 

 

SB0007 Engrossed- 494 -LRB100 06307 AMC 16345 b

1(iii) does not manufacture more than a combined 3,720,000
2gallons of beer per year, including the beer manufactured at
3the brew pub; and (iv) is not a member of or affiliated with,
4directly or indirectly, a manufacturer that produces more than
53,720,000 gallons of beer per year or any other alcoholic
6liquor.
7    Notwithstanding any other provision of this Act, a licensed
8brewer, class 2 brewer, or non-resident dealer who before July
91, 2015 manufactured less than 3,720,000 gallons of beer per
10year and held a brew pub license on or before July 1, 2015 may
11(i) continue to qualify for and hold that brew pub license for
12the licensed premises and (ii) manufacture more than 3,720,000
13gallons of beer per year and continue to qualify for and hold
14that brew pub license if that brewer, class 2 brewer, or
15non-resident dealer does not simultaneously hold a class 1
16brewer license and is not a member of or affiliated with,
17directly or indirectly, a manufacturer that produces more than
183,720,000 gallons of beer per year or that produces any other
19alcoholic liquor.
20    (o) A caterer retailer license shall allow the holder to
21serve alcoholic liquors as an incidental part of a food service
22that serves prepared meals which excludes the serving of snacks
23as the primary meal, either on or off-site whether licensed or
24unlicensed.
25    (p) An auction liquor license shall allow the licensee to
26sell and offer for sale at auction wine and spirits for use or

 

 

SB0007 Engrossed- 495 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 496 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 497 -LRB100 06307 AMC 16345 b

1written appointment of the third-party wine provider, except
2for a common carrier, to the wine manufacturer shall be filed
3with the State Commission as a supplement to the winery
4shipper's license application or any renewal thereof. The
5winery shipper's license holder shall affirm under penalty of
6perjury, as part of the winery shipper's license application or
7renewal, that he or she only ships wine, either directly or
8indirectly through a third-party provider, from the licensee's
9own production.
10    Except for a common carrier, a third-party provider
11shipping wine on behalf of a winery shipper's license holder is
12the agent of the winery shipper's license holder and, as such,
13a winery shipper's license holder is responsible for the acts
14and omissions of the third-party provider acting on behalf of
15the license holder. A third-party provider, except for a common
16carrier, that engages in shipping wine into Illinois on behalf
17of a winery shipper's license holder shall consent to the
18jurisdiction of the State Commission and the State. Any
19third-party, except for a common carrier, holding such an
20appointment shall, by February 1 of each calendar year, file
21with the State Commission a statement detailing each shipment
22made to an Illinois resident. The State Commission shall adopt
23rules as soon as practicable to implement the requirements of
24Public Act 99-904 this amendatory Act of the 99th General
25Assembly and shall adopt rules prohibiting any such third-party
26appointment of a third-party provider, except for a common

 

 

SB0007 Engrossed- 498 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 499 -LRB100 06307 AMC 16345 b

1must comply with the requirements of Section 6-29 of this Act.
2    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
3Section 3-12, the State Commission may receive, respond to, and
4investigate any complaint and impose any of the remedies
5specified in paragraph (1) of subsection (a) of Section 3-12.
6    (s) A craft distiller tasting permit license shall allow an
7Illinois licensed craft distiller to transfer a portion of its
8alcoholic liquor inventory from its craft distiller licensed
9premises to the premises specified in the license hereby
10created and to conduct a sampling, only in the premises
11specified in the license hereby created, of the transferred
12alcoholic liquor in accordance with subsection (c) of Section
136-31 of this Act. The transferred alcoholic liquor may not be
14sold or resold in any form. An applicant for the craft
15distiller tasting permit license must also submit with the
16application proof satisfactory to the State Commission that the
17applicant will provide dram shop liability insurance to the
18maximum limits and have local authority approval.
19(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
2098-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.
217-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
22eff. 1-1-17; revised 9-15-16.)
 
23    (235 ILCS 5/6-30)  (from Ch. 43, par. 144f)
24    Sec. 6-30. Notwithstanding any other provision of this Act,
25the Illinois Gaming Board shall have exclusive authority to

 

 

SB0007 Engrossed- 500 -LRB100 06307 AMC 16345 b

1establish the hours for sale and consumption of alcoholic
2liquor on board a riverboat during riverboat gambling
3excursions and in a casino conducted in accordance with the
4Illinois Riverboat Gambling Act.
5(Source: P.A. 87-826.)
 
6    Section 90-46. The Illinois Public Aid Code is amended by
7changing Section 10-17.15 as follows:
 
8    (305 ILCS 5/10-17.15)
9    Sec. 10-17.15. Certification of information to State
10gaming licensees.
11    (a) For purposes of this Section, "State gaming licensee"
12means, as applicable, an organization licensee or advance
13deposit wagering licensee licensed under the Illinois Horse
14Racing Act of 1975, an owners licensee licensed under the
15Illinois Riverboat Gambling Act, or a licensee that operates,
16under any law of this State, one or more facilities or gaming
17locations at which lawful gambling is authorized and licensed
18as provided in the Illinois Riverboat Gambling Act.
19    (b) The Department may provide, by rule, for certification
20to any State gaming licensee of past due child support owed by
21a responsible relative under a support order entered by a court
22or administrative body of this or any other State on behalf of
23a resident or non-resident receiving child support services
24under this Article in accordance with the requirements of Title

 

 

SB0007 Engrossed- 501 -LRB100 06307 AMC 16345 b

1IV-D, Part D, of the Social Security Act. The State gaming
2licensee shall have the ability to withhold from winnings
3required to be reported to the Internal Revenue Service on Form
4W-2G, up to the full amount of winnings necessary to pay the
5winner's past due child support. The rule shall provide for
6notice to and an opportunity to be heard by each responsible
7relative affected and any final administrative decision
8rendered by the Department shall be reviewed only under and in
9accordance with the Administrative Review Law.
10    (c) For withholding of winnings, the State gaming licensee
11shall be entitled to an administrative fee not to exceed the
12lesser of 4% of the total amount of cash winnings paid to the
13gambling winner or $150.
14    (d) In no event may the total amount withheld from the cash
15payout, including the administrative fee, exceed the total cash
16winnings claimed by the obligor. If the cash payout claimed is
17greater than the amount sufficient to satisfy the obligor's
18delinquent child support payments, the State gaming licensee
19shall pay the obligor the remaining balance of the payout, less
20the administrative fee authorized by subsection (c) of this
21Section, at the time it is claimed.
22    (e) A State gaming licensee who in good faith complies with
23the requirements of this Section shall not be liable to the
24gaming winner or any other individual or entity.
25(Source: P.A. 98-318, eff. 8-12-13.)
 

 

 

SB0007 Engrossed- 502 -LRB100 06307 AMC 16345 b

1    Section 90-47. The Firearm Concealed Carry Act is amended
2by changing Section 65 as follows:
 
3    (430 ILCS 66/65)
4    Sec. 65. Prohibited areas.
5    (a) A licensee under this Act shall not knowingly carry a
6firearm on or into:
7        (1) Any building, real property, and parking area under
8    the control of a public or private elementary or secondary
9    school.
10        (2) Any building, real property, and parking area under
11    the control of a pre-school or child care facility,
12    including any room or portion of a building under the
13    control of a pre-school or child care facility. Nothing in
14    this paragraph shall prevent the operator of a child care
15    facility in a family home from owning or possessing a
16    firearm in the home or license under this Act, if no child
17    under child care at the home is present in the home or the
18    firearm in the home is stored in a locked container when a
19    child under child care at the home is present in the home.
20        (3) Any building, parking area, or portion of a
21    building under the control of an officer of the executive
22    or legislative branch of government, provided that nothing
23    in this paragraph shall prohibit a licensee from carrying a
24    concealed firearm onto the real property, bikeway, or trail
25    in a park regulated by the Department of Natural Resources

 

 

SB0007 Engrossed- 503 -LRB100 06307 AMC 16345 b

1    or any other designated public hunting area or building
2    where firearm possession is permitted as established by the
3    Department of Natural Resources under Section 1.8 of the
4    Wildlife Code.
5        (4) Any building designated for matters before a
6    circuit court, appellate court, or the Supreme Court, or
7    any building or portion of a building under the control of
8    the Supreme Court.
9        (5) Any building or portion of a building under the
10    control of a unit of local government.
11        (6) Any building, real property, and parking area under
12    the control of an adult or juvenile detention or
13    correctional institution, prison, or jail.
14        (7) Any building, real property, and parking area under
15    the control of a public or private hospital or hospital
16    affiliate, mental health facility, or nursing home.
17        (8) Any bus, train, or form of transportation paid for
18    in whole or in part with public funds, and any building,
19    real property, and parking area under the control of a
20    public transportation facility paid for in whole or in part
21    with public funds.
22        (9) Any building, real property, and parking area under
23    the control of an establishment that serves alcohol on its
24    premises, if more than 50% of the establishment's gross
25    receipts within the prior 3 months is from the sale of
26    alcohol. The owner of an establishment who knowingly fails

 

 

SB0007 Engrossed- 504 -LRB100 06307 AMC 16345 b

1    to prohibit concealed firearms on its premises as provided
2    in this paragraph or who knowingly makes a false statement
3    or record to avoid the prohibition on concealed firearms
4    under this paragraph is subject to the penalty under
5    subsection (c-5) of Section 10-1 of the Liquor Control Act
6    of 1934.
7        (10) Any public gathering or special event conducted on
8    property open to the public that requires the issuance of a
9    permit from the unit of local government, provided this
10    prohibition shall not apply to a licensee who must walk
11    through a public gathering in order to access his or her
12    residence, place of business, or vehicle.
13        (11) Any building or real property that has been issued
14    a Special Event Retailer's license as defined in Section
15    1-3.17.1 of the Liquor Control Act during the time
16    designated for the sale of alcohol by the Special Event
17    Retailer's license, or a Special use permit license as
18    defined in subsection (q) of Section 5-1 of the Liquor
19    Control Act during the time designated for the sale of
20    alcohol by the Special use permit license.
21        (12) Any public playground.
22        (13) Any public park, athletic area, or athletic
23    facility under the control of a municipality or park
24    district, provided nothing in this Section shall prohibit a
25    licensee from carrying a concealed firearm while on a trail
26    or bikeway if only a portion of the trail or bikeway

 

 

SB0007 Engrossed- 505 -LRB100 06307 AMC 16345 b

1    includes a public park.
2        (14) Any real property under the control of the Cook
3    County Forest Preserve District.
4        (15) Any building, classroom, laboratory, medical
5    clinic, hospital, artistic venue, athletic venue,
6    entertainment venue, officially recognized
7    university-related organization property, whether owned or
8    leased, and any real property, including parking areas,
9    sidewalks, and common areas under the control of a public
10    or private community college, college, or university.
11        (16) Any building, real property, or parking area under
12    the control of a gaming facility licensed under the
13    Illinois Riverboat Gambling Act or the Illinois Horse
14    Racing Act of 1975, including an inter-track wagering
15    location licensee.
16        (17) Any stadium, arena, or the real property or
17    parking area under the control of a stadium, arena, or any
18    collegiate or professional sporting event.
19        (18) Any building, real property, or parking area under
20    the control of a public library.
21        (19) Any building, real property, or parking area under
22    the control of an airport.
23        (20) Any building, real property, or parking area under
24    the control of an amusement park.
25        (21) Any building, real property, or parking area under
26    the control of a zoo or museum.

 

 

SB0007 Engrossed- 506 -LRB100 06307 AMC 16345 b

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

 

 

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1    science and law enforcement training programs, or in any
2    designated area used for hunting purposes or target
3    shooting.
4    (a-10) The owner of private real property of any type may
5prohibit the carrying of concealed firearms on the property
6under his or her control. The owner must post a sign in
7accordance with subsection (d) of this Section indicating that
8firearms are prohibited on the property, unless the property is
9a private residence.
10    (b) Notwithstanding subsections (a), (a-5), and (a-10) of
11this Section except under paragraph (22) or (23) of subsection
12(a), any licensee prohibited from carrying a concealed firearm
13into the parking area of a prohibited location specified in
14subsection (a), (a-5), or (a-10) of this Section shall be
15permitted to carry a concealed firearm on or about his or her
16person within a vehicle into the parking area and may store a
17firearm or ammunition concealed in a case within a locked
18vehicle or locked container out of plain view within the
19vehicle in the parking area. A licensee may carry a concealed
20firearm in the immediate area surrounding his or her vehicle
21within a prohibited parking lot area only for the limited
22purpose of storing or retrieving a firearm within the vehicle's
23trunk. For purposes of this subsection, "case" includes a glove
24compartment or console that completely encloses the concealed
25firearm or ammunition, the trunk of the vehicle, or a firearm
26carrying box, shipping box, or other container.

 

 

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1    (c) A licensee shall not be in violation of this Section
2while he or she is traveling along a public right of way that
3touches or crosses any of the premises under subsection (a),
4(a-5), or (a-10) of this Section if the concealed firearm is
5carried on his or her person in accordance with the provisions
6of this Act or is being transported in a vehicle by the
7licensee in accordance with all other applicable provisions of
8law.
9    (d) Signs stating that the carrying of firearms is
10prohibited shall be clearly and conspicuously posted at the
11entrance of a building, premises, or real property specified in
12this Section as a prohibited area, unless the building or
13premises is a private residence. Signs shall be of a uniform
14design as established by the Department and shall be 4 inches
15by 6 inches in size. The Department shall adopt rules for
16standardized signs to be used under this subsection.
17(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
 
18    Section 90-50. The Criminal Code of 2012 is amended by
19changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
20follows:
 
21    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
22    Sec. 28-1. Gambling.
23    (a) A person commits gambling when he or she:
24        (1) knowingly plays a game of chance or skill for money

 

 

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

 

 

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1    gambling within the meaning of this paragraph (4);
2        (5) knowingly owns or possesses any book, instrument or
3    apparatus by means of which bets or wagers have been, or
4    are, recorded or registered, or knowingly possesses any
5    money which he has received in the course of a bet or
6    wager;
7        (6) knowingly sells pools upon the result of any game
8    or contest of skill or chance, political nomination,
9    appointment or election;
10        (7) knowingly sets up or promotes any lottery or sells,
11    offers to sell or transfers any ticket or share for any
12    lottery;
13        (8) knowingly sets up or promotes any policy game or
14    sells, offers to sell or knowingly possesses or transfers
15    any policy ticket, slip, record, document or other similar
16    device;
17        (9) knowingly drafts, prints or publishes any lottery
18    ticket or share, or any policy ticket, slip, record,
19    document or similar device, except for such activity
20    related to lotteries, bingo games and raffles authorized by
21    and conducted in accordance with the laws of Illinois or
22    any other state or foreign government;
23        (10) knowingly advertises any lottery or policy game,
24    except for such activity related to lotteries, bingo games
25    and raffles authorized by and conducted in accordance with
26    the laws of Illinois or any other state;

 

 

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

 

 

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1        (3) Pari-mutuel betting as authorized by the law of
2    this State.
3        (4) Manufacture of gambling devices, including the
4    acquisition of essential parts therefor and the assembly
5    thereof, for transportation in interstate or foreign
6    commerce to any place outside this State when such
7    transportation is not prohibited by any applicable Federal
8    law; or the manufacture, distribution, or possession of
9    video gaming terminals, as defined in the Video Gaming Act,
10    by manufacturers, distributors, and terminal operators
11    licensed to do so under the Video Gaming Act.
12        (5) The game commonly known as "bingo", when conducted
13    in accordance with the Bingo License and Tax Act.
14        (6) Lotteries when conducted by the State of Illinois
15    in accordance with the Illinois Lottery Law. This exemption
16    includes any activity conducted by the Department of
17    Revenue to sell lottery tickets pursuant to the provisions
18    of the Illinois Lottery Law and its rules.
19        (6.1) The purchase of lottery tickets through the
20    Internet for a lottery conducted by the State of Illinois
21    under the program established in Section 7.12 of the
22    Illinois Lottery Law.
23        (7) Possession of an antique slot machine that is
24    neither used nor intended to be used in the operation or
25    promotion of any unlawful gambling activity or enterprise.
26    For the purpose of this subparagraph (b)(7), an antique

 

 

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1    slot machine is one manufactured 25 years ago or earlier.
2        (8) Raffles and poker runs when conducted in accordance
3    with the Raffles and Poker Runs Act.
4        (9) Charitable games when conducted in accordance with
5    the Charitable Games Act.
6        (10) Pull tabs and jar games when conducted under the
7    Illinois Pull Tabs and Jar Games Act.
8        (11) Gambling games conducted on riverboats when
9    authorized by the Illinois Riverboat Gambling Act.
10        (12) Video gaming terminal games at a licensed
11    establishment, licensed truck stop establishment, licensed
12    fraternal establishment, or licensed veterans
13    establishment when conducted in accordance with the Video
14    Gaming Act.
15        (13) Games of skill or chance where money or other
16    things of value can be won but no payment or purchase is
17    required to participate.
18        (14) Savings promotion raffles authorized under
19    Section 5g of the Illinois Banking Act, Section 7008 of the
20    Savings Bank Act, Section 42.7 of the Illinois Credit Union
21    Act, Section 5136B of the National Bank Act (12 U.S.C.
22    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
23    1463).
24    (c) Sentence.
25    Gambling is a Class A misdemeanor. A second or subsequent
26conviction under subsections (a)(3) through (a)(12), is a Class

 

 

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

 

 

SB0007 Engrossed- 515 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 516 -LRB100 06307 AMC 16345 b

1    thereof, for transportation in interstate or foreign
2    commerce to any place outside this State when the
3    transportation is not prohibited by any applicable Federal
4    law;
5        (5) Raffles and poker runs when conducted in accordance
6    with the Raffles and Poker Runs Act;
7        (6) Gambling games conducted on riverboats, in
8    casinos, or at electronic gaming facilities when
9    authorized by the Illinois Riverboat Gambling Act;
10        (7) Video gaming terminal games at a licensed
11    establishment, licensed truck stop establishment, licensed
12    fraternal establishment, or licensed veterans
13    establishment when conducted in accordance with the Video
14    Gaming Act; and
15        (8) Savings promotion raffles authorized under Section
16    5g of the Illinois Banking Act, Section 7008 of the Savings
17    Bank Act, Section 42.7 of the Illinois Credit Union Act,
18    Section 5136B of the National Bank Act (12 U.S.C. 25a), or
19    Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
20    (f) Sentence. Syndicated gambling is a Class 3 felony.
21(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
22    (720 ILCS 5/28-3)   (from Ch. 38, par. 28-3)
23    Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
24any real estate, vehicle, boat or any other property whatsoever
25used for the purposes of gambling other than gambling conducted

 

 

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1in the manner authorized by the Illinois Riverboat Gambling Act
2or the Video Gaming Act. Any person who knowingly permits any
3premises or property owned or occupied by him or under his
4control to be used as a gambling place commits a Class A
5misdemeanor. Each subsequent offense is a Class 4 felony. When
6any premises is determined by the circuit court to be a
7gambling place:
8    (a) Such premises is a public nuisance and may be proceeded
9against as such, and
10    (b) All licenses, permits or certificates issued by the
11State of Illinois or any subdivision or public agency thereof
12authorizing the serving of food or liquor on such premises
13shall be void; and no license, permit or certificate so
14cancelled shall be reissued for such premises for a period of
1560 days thereafter; nor shall any person convicted of keeping a
16gambling place be reissued such license for one year from his
17conviction and, after a second conviction of keeping a gambling
18place, any such person shall not be reissued such license, and
19    (c) Such premises of any person who knowingly permits
20thereon a violation of any Section of this Article shall be
21held liable for, and may be sold to pay any unsatisfied
22judgment that may be recovered and any unsatisfied fine that
23may be levied under any Section of this Article.
24(Source: P.A. 96-34, eff. 7-13-09.)
 
25    (720 ILCS 5/28-5)  (from Ch. 38, par. 28-5)

 

 

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1    Sec. 28-5. Seizure of gambling devices and gambling funds.
2    (a) Every device designed for gambling which is incapable
3of lawful use or every device used unlawfully for gambling
4shall be considered a "gambling device", and shall be subject
5to seizure, confiscation and destruction by the Department of
6State Police or by any municipal, or other local authority,
7within whose jurisdiction the same may be found. As used in
8this Section, a "gambling device" includes any slot machine,
9and includes any machine or device constructed for the
10reception of money or other thing of value and so constructed
11as to return, or to cause someone to return, on chance to the
12player thereof money, property or a right to receive money or
13property. With the exception of any device designed for
14gambling which is incapable of lawful use, no gambling device
15shall be forfeited or destroyed unless an individual with a
16property interest in said device knows of the unlawful use of
17the device.
18    (b) Every gambling device shall be seized and forfeited to
19the county wherein such seizure occurs. Any money or other
20thing of value integrally related to acts of gambling shall be
21seized and forfeited to the county wherein such seizure occurs.
22    (c) If, within 60 days after any seizure pursuant to
23subparagraph (b) of this Section, a person having any property
24interest in the seized property is charged with an offense, the
25court which renders judgment upon such charge shall, within 30
26days after such judgment, conduct a forfeiture hearing to

 

 

SB0007 Engrossed- 519 -LRB100 06307 AMC 16345 b

1determine whether such property was a gambling device at the
2time of seizure. Such hearing shall be commenced by a written
3petition by the State, including material allegations of fact,
4the name and address of every person determined by the State to
5have any property interest in the seized property, a
6representation that written notice of the date, time and place
7of such hearing has been mailed to every such person by
8certified mail at least 10 days before such date, and a request
9for forfeiture. Every such person may appear as a party and
10present evidence at such hearing. The quantum of proof required
11shall be a preponderance of the evidence, and the burden of
12proof shall be on the State. If the court determines that the
13seized property was a gambling device at the time of seizure,
14an order of forfeiture and disposition of the seized property
15shall be entered: a gambling device shall be received by the
16State's Attorney, who shall effect its destruction, except that
17valuable parts thereof may be liquidated and the resultant
18money shall be deposited in the general fund of the county
19wherein such seizure occurred; money and other things of value
20shall be received by the State's Attorney and, upon
21liquidation, shall be deposited in the general fund of the
22county wherein such seizure occurred. However, in the event
23that a defendant raises the defense that the seized slot
24machine is an antique slot machine described in subparagraph
25(b) (7) of Section 28-1 of this Code and therefore he is exempt
26from the charge of a gambling activity participant, the seized

 

 

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

 

 

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1Section.
2    (f) Any gambling equipment, devices and supplies provided
3by a licensed supplier in accordance with the Illinois
4Riverboat Gambling Act which are removed from a the riverboat,
5casino, or electronic gaming facility for repair are exempt
6from seizure under this Section.
7    (g) The following video gaming terminals are exempt from
8seizure under this Section:
9        (1) Video gaming terminals for sale to a licensed
10    distributor or operator under the Video Gaming Act.
11        (2) Video gaming terminals used to train licensed
12    technicians or licensed terminal handlers.
13        (3) Video gaming terminals that are removed from a
14    licensed establishment, licensed truck stop establishment,
15    licensed fraternal establishment, or licensed veterans
16    establishment for repair.
17(Source: P.A. 98-31, eff. 6-24-13.)
 
18    (720 ILCS 5/28-7)   (from Ch. 38, par. 28-7)
19    Sec. 28-7. Gambling contracts void.
20    (a) All promises, notes, bills, bonds, covenants,
21contracts, agreements, judgments, mortgages, or other
22securities or conveyances made, given, granted, drawn, or
23entered into, or executed by any person whatsoever, where the
24whole or any part of the consideration thereof is for any money
25or thing of value, won or obtained in violation of any Section

 

 

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

 

 

SB0007 Engrossed- 523 -LRB100 06307 AMC 16345 b

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

 

 

SB0007 Engrossed- 524 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

SB0007 Engrossed- 526 -LRB100 06307 AMC 16345 b

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

 

 

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

 

 

SB0007 Engrossed- 528 -LRB100 06307 AMC 16345 b

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

 
11    Section 99-97. Severability. The provisions of this Act are
12severable under Section 1.31 of the Statute on Statutes.
 
13    Section 99-99. Effective date. This Act takes effect upon
14becoming law.

 

 

SB0007 Engrossed- 529 -LRB100 06307 AMC 16345 b

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 Engrossed- 530 -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 Engrossed- 531 -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 Engrossed- 532 -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

 

 

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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.