Rep. Robert Rita

Filed: 5/25/2018

 

 


 

 


 
10000SB0007ham003LRB100 06307 SMS 40923 a

1
AMENDMENT TO SENATE BILL 7

2    AMENDMENT NO. ______. Amend Senate Bill 7 by replacing
3everything after the enacting clause with the following:
 
4
"Article 1. Chicago Casino Development Authority Act

 
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

 

 

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1enhance investment, development, and tourism in Illinois, it is
2recognized that it will do so successfully only if public
3confidence and trust in the credibility and integrity of the
4gambling operations and the regulatory process is maintained.
5Therefore, the provisions of this Act are designed to allow the
6Illinois Gaming Board to strictly regulate the facilities,
7persons, associations, and practices related to gambling
8operations pursuant to the police powers of the State,
9including comprehensive law enforcement supervision.
10Consistent with the Gaming Board's authority, the Gaming Board
11alone shall regulate any Chicago casino, just as it now
12regulates every other casino in Illinois.
 
13    Section 1-5. Definitions. As used in this Act:
14    "Authority" means the Chicago Casino Development Authority
15created by this Act.
16    "Casino" means one temporary land-based or water-based
17facility and one permanent land-based or water-based facility
18and airport gaming locations pursuant to Section 1-67 of this
19Act at which lawful gambling is authorized and licensed as
20provided in the Illinois Gambling Act.
21    "Casino Board" means the board appointed pursuant to this
22Act to govern and control the Authority.
23    "Casino management contract" means a legally binding
24agreement between the Authority and a casino operator licensee
25to operate or manage a casino.

 

 

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1    "Casino operator licensee" means any person or entity
2selected by the Authority and approved and licensed by the
3Gaming Board to manage and operate a casino within the City of
4Chicago pursuant to a casino management contract.
5    "City" means the City of Chicago.
6    "Entity" means a corporation, joint venture, partnership,
7limited liability company, trust, or unincorporated
8association.
9    "Executive director" means the person appointed by the
10Casino Board to oversee the daily operations of the Authority.
11    "Gaming Board" means the Illinois Gaming Board created by
12the Illinois Gambling Act.
13    "Mayor" means the Mayor of the City.
 
14    Section 1-12. Creation of the Authority. There is hereby
15created a political subdivision, unit of local government with
16only the powers authorized by law, body politic, and municipal
17corporation, by the name and style of the Chicago Casino
18Development Authority.
 
19    Section 1-13. Duties of the Authority. It shall be the duty
20of the Authority, as an owners licensee under the Illinois
21Gambling Act, to promote and maintain a casino in the City. The
22Authority shall own, acquire, construct, lease, equip, and
23maintain grounds, buildings, and facilities for that purpose.
24However, the Authority shall contract with a casino operator

 

 

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1licensee to manage and operate the casino and in no event shall
2the Authority or City manage or operate the casino. The
3Authority may contract pursuant to the procedures set forth in
4Section 1-115 with other third parties in order to fulfill its
5purpose. The Authority is responsible for the payment of any
6fees required of a casino operator under subsection (a) of
7Section 7.9 of the Illinois Gambling Act if the casino operator
8licensee is late in paying any such fees. The Authority is
9granted all rights and powers necessary to perform such duties.
10Subject to the provisions of this Act, the Authority and casino
11operator licensee are subject to the Illinois Gambling Act and
12all of the rules of the Gaming Board, which shall be applied to
13the Authority and the casino operator licensee in a manner
14consistent with that of other owners licensees under the
15Illinois Gambling Act. Nothing in this Act shall confer
16regulatory authority on the Chicago Casino Development
17Authority. The Illinois Gaming Board shall have exclusive
18regulatory authority over all gambling operations governed by
19this Act.
 
20    Section 1-15. Casino Board.
21    (a) The governing and administrative powers of the
22Authority shall be vested in a body known as the Chicago Casino
23Development Board. The Casino Board shall consist of 5 members
24appointed by the Mayor. One of these members shall be
25designated by the Mayor to serve as chairperson. All of the

 

 

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1members appointed by the Mayor shall be residents of the City.
2    Each Casino Board appointee shall be subject to a
3preliminary background investigation completed by the Gaming
4Board within 30 days after the appointee's submission of his or
5her application to the Gaming Board. If the Gaming Board
6determines that there is a substantial likelihood that it will
7not find the appointee to be suitable to serve on the Casino
8Board (applying the same standards for suitability to the
9appointee as the Gaming Board would apply to an owners licensee
10key person under the Gaming Board's adopted rules), then the
11Gaming Board shall provide a written notice of such
12determination to the appointee and the Corporation Counsel of
13the City. The Mayor may then appoint a new candidate. If no
14such notice is delivered with respect to a particular
15appointee, then commencing on the 31st day following the date
16of the appointee's submission of his or her application to the
17Gaming Board, the appointee shall be deemed an acting member of
18the Casino Board and shall participate as a Casino Board
19member.
20    Each appointee shall be subject to a full background
21investigation and final approval by the Gaming Board prior to
22the opening of the casino. The Gaming Board shall complete its
23full background investigation of the Casino Board appointee
24within 3 months after the date of the appointee's submission of
25his or her application to the Gaming Board. If the Gaming Board
26does not complete its background investigation within the

 

 

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13-month period, then the Gaming Board shall give a written
2explanation to the appointee, as well as the Mayor, the
3Governor, the President of the Senate, and the Speaker of the
4House of Representatives, as to why it has not reached a final
5determination and set forth a reasonable time when such
6determination shall be made.
7    (b) Casino Board members shall receive $300 for each day
8the Authority meets and shall be entitled to reimbursement of
9reasonable expenses incurred in the performance of their
10official duties. A Casino Board member who serves in the office
11of secretary-treasurer may also receive compensation for
12services provided as that officer.
 
13    Section 1-20. Terms of appointments; resignation and
14removal.
15    (a) The Mayor shall appoint 2 members of the Casino Board
16for an initial term expiring July 1 of the year following final
17approval by the Gaming Board, 2 members for an initial term
18expiring July 1 three years following final approval by the
19Gaming Board, and one member for an initial term expiring July
201 five years following final approval by the Gaming Board.
21    (b) All successors shall be appointed by the Mayor to hold
22office for a term of 5 years from the first day of July of the
23year in which they are appointed, except in the case of an
24appointment to fill a vacancy. Each member, including the
25chairperson, shall hold office until the expiration of his or

 

 

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1her term and until his or her successor is appointed and
2qualified. Nothing shall preclude a member from serving
3consecutive terms. Any member may resign from office, to take
4effect when a successor has been appointed and qualified. A
5vacancy in office shall occur in the case of a member's death
6or indictment, conviction, or plea of guilty to a felony. A
7vacancy shall be filled for the unexpired term by the Mayor
8subject to the approval of the Gaming Board as provided in this
9Section.
10    (c) Members of the Casino Board shall serve at the pleasure
11of the Mayor. The Mayor or the Gaming Board may remove any
12member of the Casino Board upon a finding of incompetence,
13neglect of duty, or misfeasance or malfeasance in office or for
14a violation of this Act. The Gaming Board may remove any member
15of the Casino Board for any violation of the Illinois Gambling
16Act or the rules and regulations of the Gaming Board.
17    (d) No member of the Casino Board shall engage in any
18political activity. For the purpose of this Section, "political
19activity" means any activity in support of or in connection
20with any campaign for federal, State, or local elective office
21or any political organization, but does not include activities
22(i) relating to the support or opposition of any executive,
23legislative, or administrative action, as those terms are
24defined in Section 2 of the Lobbyist Registration Act, (ii)
25relating to collective bargaining, or (iii) that are otherwise
26in furtherance of the person's official duties or governmental

 

 

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1and public service functions.
 
2    Section 1-25. Organization of Casino Board; meetings.
3After appointment by the Mayor, the Casino Board shall organize
4for the transaction of business, provided that the Casino Board
5shall not take any formal action until after the Gaming Board
6has completed its preliminary background investigation of at
7least a quorum of the Casino Board as provided in subsection
8(a) of Section 1-15. The Casino Board shall prescribe the time
9and place for meetings, the manner in which special meetings
10may be called, and the notice that must be given to members.
11All actions and meetings of the Casino Board shall be subject
12to the provisions of the Open Meetings Act. Three members of
13the Casino Board shall constitute a quorum. All substantive
14action of the Casino Board shall be by resolution with an
15affirmative vote of a majority of the members.
 
16    Section 1-30. Executive director; officers.
17    (a) The Casino Board shall appoint an executive director,
18who shall be the chief executive officer of the Authority.
19    The executive director shall be subject to a preliminary
20background investigation to be completed by the Gaming Board
21within 30 days after the executive director's submission of his
22or her application to the Gaming Board. If the Gaming Board
23determines that there is a substantial likelihood that it will
24not find the executive director to be suitable to serve in that

 

 

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1position (applying the same standards for suitability as the
2Gaming Board would apply to an owners licensee key person under
3the Gaming Board's adopted rules), then the Gaming Board shall
4provide a written notice of such determination to the appointee
5and the Corporation Counsel of the City. The Casino Board may
6then appoint a new executive director. If no such notice is
7delivered, then commencing on the 31st day following the date
8of the executive director's submission of his or her
9application to the Gaming Board, the executive director shall
10commence all duties as the acting executive director of the
11Authority.
12    The executive director shall be subject to a full
13background investigation and final approval by the Gaming Board
14prior to the opening of the casino. The Gaming Board shall
15complete its full background investigation of the executive
16director within 3 months after the date of the executive
17director's submission of his or her application to the Gaming
18Board. If the Gaming Board does not complete its background
19investigation within the 3-month period, then the Gaming Board
20shall give a written explanation to the appointee, as well as
21the Mayor, the Governor, the President of the Senate, and the
22Speaker of the House of Representatives, as to why it has not
23reached a final determination and set forth a reasonable time
24when such determination shall be made.
25    (b) The Casino Board shall fix the compensation of the
26executive director. Subject to the general control of the

 

 

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1Casino Board, the executive director shall be responsible for
2the management of the business, properties, and employees of
3the Authority. The executive director shall direct the
4enforcement of all resolutions, rules, and regulations of the
5Casino Board, and shall perform such other duties as may be
6prescribed from time to time by the Casino Board. All employees
7and independent contractors, consultants, engineers,
8architects, accountants, attorneys, financial experts,
9construction experts and personnel, superintendents, managers,
10and other personnel appointed or employed pursuant to this Act
11shall report to the executive director. In addition to any
12other duties set forth in this Act, the executive director
13shall do or shall delegate to an employee or agent of the
14Authority to do all of the following:
15        (1) Direct and supervise the administrative affairs
16    and activities of the Authority in accordance with its
17    rules, regulations, and policies.
18        (2) Attend meetings of the Casino Board.
19        (3) Keep minutes of all proceedings of the Casino
20    Board.
21        (4) Approve all accounts for salaries, per diem
22    payments, and allowable expenses of the Casino Board and
23    its employees and consultants.
24        (5) Report and make recommendations to the Casino Board
25    concerning the terms and conditions of any casino
26    management contract.

 

 

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1        (6) Perform any other duty that the Casino Board
2    requires for carrying out the provisions of this Act.
3        (7) Devote his or her full time to the duties of the
4    office and not hold any other office or employment.
5    (c) The Casino Board may select a secretary-treasurer and
6other officers to hold office at the pleasure of the Casino
7Board. The Casino Board shall fix the duties of such officers.
 
8    Section 1-31. General rights and powers of the Authority.
9    (a) In addition to the duties and powers set forth in this
10Act, the Authority shall have the following rights and powers:
11        (1) Adopt and alter an official seal.
12        (2) Establish and change its fiscal year.
13        (3) Sue and be sued, plead and be impleaded, all in its
14    own name, and agree to binding arbitration of any dispute
15    to which it is a party.
16        (4) Adopt, amend, and repeal bylaws, rules, and
17    regulations consistent with the furtherance of the powers
18    and duties provided for.
19        (5) Maintain its principal office within the City and
20    such other offices as the Casino Board may designate.
21        (6) Select locations in the City for a temporary and a
22    permanent casino.
23        (7) Subject to the bidding procedures of Section 1-115
24    of this Act, retain or employ, either as regular employees
25    or independent contractors, consultants, engineers,

 

 

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1    architects, accountants, attorneys, financial experts,
2    construction experts and personnel, superintendents,
3    managers and other professional personnel, and such other
4    personnel as may be necessary in the judgment of the Casino
5    Board, and fix their compensation; however, employees of
6    the Authority shall be hired pursuant to and in accordance
7    with the rules and policies the Authority may adopt.
8        (8) Pursuant to Section 1-115 of this Act, own,
9    acquire, construct, equip, lease, operate, manage, and
10    maintain grounds, buildings, and facilities to carry out
11    its corporate purposes and duties.
12        (9) Pursuant to Section 1-115, and subject to the
13    oversight, review, and approval of the Gaming Board, enter
14    into, revoke, and modify contracts in accordance with the
15    rules of the Gaming Board as consistently applied to all
16    owners licensees under the Illinois Gambling Act, provided
17    that the Authority may enter into contracts for the design,
18    construction, and outfitting of a temporary casino prior to
19    the Gaming Board's final approval of the Authority's
20    executive director and the members of the Casino Board and
21    prior to the Gaming Board's issuance of the Authority's
22    owners license. Provided further that the entities
23    selected by the Authority for the design, construction, and
24    outfitting of the temporary casino shall be subject to a
25    preliminary background investigation to be completed by
26    the Gaming Board within 30 days after the Gaming Board is

 

 

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1    provided the identities of the entities. If the Gaming
2    Board determines that there is a substantial likelihood
3    that the entities are not suitable or acceptable to perform
4    their respective functions, then the Gaming Board shall
5    immediately provide notice of that determination to the
6    Authority. If no such notice is delivered, then, commencing
7    on the 31st day following the date on which the information
8    identifying such entities is provided to the Gaming Board,
9    such entities shall be permitted to commence the services
10    contemplated for the design, construction, and outfitting
11    of the temporary casino. In no event, however, shall the
12    Authority open a casino until after the Gaming Board has
13    finally approved the Authority's executive director and
14    the members of the Casino Board and the Gaming Board has
15    issued the Authority's owners license and the casino
16    operator's casino operator license.
17        (10) Enter into a casino management contract subject to
18    the provisions of Section 1-45 of this Act.
19        (11) Negotiate and enter into intergovernmental
20    agreements with the State and its agencies, the City, and
21    other units of local government, in furtherance of the
22    powers and duties of the Casino Board.
23        (12) Receive and disburse funds for its own corporate
24    purposes or as otherwise specified in this Act.
25        (13) Borrow money from any source, public or private,
26    for any corporate purpose, including, without limitation,

 

 

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1    working capital for its operations, reserve funds, or
2    payment of interest, and to mortgage, pledge, or otherwise
3    encumber the property or funds of the Authority and to
4    contract with or engage the services of any person in
5    connection with any financing, including financial
6    institutions, issuers of letters of credit, or insurers and
7    enter into reimbursement agreements with this person or
8    entity which may be secured as if money were borrowed from
9    the person or entity.
10        (14) Issue bonds as provided for under this Act.
11        (15) Receive and accept from any source, private or
12    public, contributions, gifts, or grants of money or
13    property to the Authority.
14        (16) Provide for the insurance of any property,
15    operations, officers, members, agents, or employees of the
16    Authority against any risk or hazard, to self-insure or
17    participate in joint self-insurance pools or entities to
18    insure against such risk or hazard, and to provide for the
19    indemnification of its officers, members, employees,
20    contractors, or agents against any and all risks.
21        (17) Exercise all the corporate powers granted
22    Illinois corporations under the Business Corporation Act
23    of 1983, except to the extent that powers are inconsistent
24    with those of a body politic and municipal corporation.
25        (18) Do all things necessary or convenient to carry out
26    the powers granted by this Act.

 

 

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1    (b) The Casino Board shall comply with all applicable legal
2requirements imposed on other owners licensees to conduct all
3background investigations required under the Illinois Gambling
4Act and the rules of the Gaming Board. This requirement shall
5also extend to senior legal, financial, and administrative
6staff of the Authority.
 
7    Section 1-32. Ethical conduct.
8    (a) Casino Board members and employees of the Authority
9must carry out their duties and responsibilities in such a
10manner as to promote and preserve public trust and confidence
11in the integrity and conduct of gaming.
12    (b) Except as may be required in the conduct of official
13duties, Casino Board members and employees of the Authority
14shall not engage in gambling on any riverboat, in any casino,
15or in an organization gaming facility licensed by the Illinois
16Gaming Board or engage in legalized gambling in any
17establishment identified by Gaming Board action that, in the
18judgment of the Gaming Board, could represent a potential for a
19conflict of interest.
20    (c) A Casino Board member or employee of the Authority
21shall not use or attempt to use his or her official position to
22secure or attempt to secure any privilege, advantage, favor, or
23influence for himself or herself or others.
24    (d) Casino Board members and employees of the Authority
25shall not hold or pursue employment, office, position,

 

 

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1business, or occupation that may conflict with his or her
2official duties. Employees may engage in other gainful
3employment so long as that employment does not interfere or
4conflict with their duties. Such employment must be disclosed
5to the executive director and approved by the Casino Board.
6    (e) Casino Board members, employees of the Authority, and
7elected officials and employees of the City may not engage in
8employment, communications, or any activity identified by the
9Casino Board or Gaming Board that, in the judgment of either
10entity, could represent the potential for or the appearance of
11a conflict of interest.
12    (f) Casino Board members, employees of the Authority, and
13elected officials and employees of the City may not have a
14financial interest, directly or indirectly, in his or her own
15name or in the name of any other person, partnership,
16association, trust, corporation, or other entity in any
17contract or subcontract for the performance of any work for the
18Authority. This prohibition shall extend to the holding or
19acquisition of an interest in any entity identified by the
20Casino Board or the Gaming Board that, in the judgment of
21either entity, could represent the potential for or the
22appearance of a financial interest. The holding or acquisition
23of an interest in such entities through an indirect means, such
24as through a mutual fund, shall not be prohibited, except that
25the Gaming Board may identify specific investments or funds
26that, in its judgment, are so influenced by gaming holdings as

 

 

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1to represent the potential for or the appearance of a conflict
2of interest.
3    (g) Casino Board members, employees of the Authority, and
4elected officials and employees of the City may not accept any
5gift, gratuity, service, compensation, travel, lodging, or
6thing of value, with the exception of unsolicited items of an
7incidental nature, from any person, corporation, or entity
8doing business with the Authority.
9    (h) No Casino Board member, employee of the Authority, or
10elected official or employee of the City may, during employment
11or within a period of 2 years immediately after termination of
12employment, knowingly accept employment or receive
13compensation or fees for services from a person or entity, or
14its parent or affiliate, that has engaged in business with the
15Authority that resulted in contracts with an aggregate value of
16at least $25,000 or if that Casino Board member or employee has
17made a decision that directly applied to the person or entity,
18or its parent or affiliate.
19    (i) A spouse, child, or parent of a Casino Board member,
20employee of the Authority, or elected official or employee of
21the City may not have a financial interest, directly or
22indirectly, in his or her own name or in the name of any other
23person, partnership, association, trust, corporation, or other
24entity in any contract or subcontract for the performance of
25any work for the Authority. This prohibition shall extend to
26the holding or acquisition of an interest in any entity

 

 

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

 

 

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1has made a decision that directly applied to the person or
2entity, or its parent or affiliate.
3    (l) No Casino Board member, employee of the Authority, or
4elected official or employee of the City may attempt, in any
5way, to influence any person or entity doing business with the
6Authority or any officer, agent, or employee thereof to hire or
7contract with any person or entity for any compensated work.
8    (m) No Casino Board member, employee of the Authority, or
9elected official or employee of the City shall use or attempt
10to use his or her official position to secure, or attempt to
11secure, any privilege, advantage, favor, or influence for
12himself or herself or others. No Casino Board member, employee
13of the Authority, or elected official or employee of the City
14shall, within one year immediately preceding appointment by the
15Mayor or employment, have been employed or received
16compensation or fees for services from a person or entity, or
17its parent or affiliate, that has engaged in business with the
18Casino Board, a licensee under this Act, or a licensee under
19the Illinois Gambling Act.
20    (n) Any communication between an elected official of the
21City and any applicant for or party to a casino management
22contract with the Authority, or an officer, director, or
23employee thereof, concerning any matter relating in any way to
24gaming or the Authority shall be disclosed to the Casino Board
25and the Gaming Board. Such disclosure shall be in writing by
26the official within 30 days after the communication and shall

 

 

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1be filed with the Casino Board and the Gaming Board. Disclosure
2must consist of the date of the communication, the identity and
3job title of the person with whom the communication was made, a
4brief summary of the communication, the action requested or
5recommended, all responses made, the identity and job title of
6the person making the response, and any other pertinent
7information. In addition, if the communication is written or
8digital, then the entire communication shall be disclosed.
9    Public disclosure of the written summary provided to the
10Casino Board and the Gaming Board shall be subject to the
11exemptions provided under Section 7 of the Freedom of
12Information Act.
13    This subsection (n) shall not apply to communications
14regarding traffic, law enforcement, security, environmental
15issues, City services, transportation, or other routine
16matters concerning the ordinary operations of the casino.
17    (o) For purposes of this Section:
18    "Ordinary operations" means operations relating to the
19casino facility other than the conduct of gambling activities.
20    "Routine matters" includes the application for, issuance,
21renewal, and other processes associated with City permits and
22licenses.
23    "Employee of the City" means only those employees of the
24City who provide services to the Authority or otherwise
25influence the decisions of the Authority or the Casino Board.
26    (p) Any Casino Board member or employee of the Authority

 

 

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1who violates any provision of this Section is guilty of a Class
24 felony.
 
3    Section 1-45. Casino management contracts.
4    (a) The Casino Board shall enter into a casino management
5contract with a casino operator subject to a background
6investigation and approval by the Gaming Board and payment by
7the proposed casino operator of a fee of $50,000,000, which
8shall be deposited into the Gaming Facilities Fee Revenue Fund.
9The Gaming Board shall complete its background investigation
10and approval of the casino operator within 6 months after the
11date that the proposed casino operator submits its application
12to the Gaming Board. If the Gaming Board does not complete its
13background investigation and approval within the 6-month
14period, then the Gaming Board shall give a written explanation
15to the proposed casino operator and the chief legal officer of
16the Authority as to why it has not reached a final
17determination and when it reasonably expects to make a final
18determination. Validity of the casino management contract is
19contingent upon the issuance of a casino operator license. If
20the Gaming Board grants a casino operator license, the Casino
21Board shall transmit a copy of the executed casino management
22contract to the Gaming Board.
23    (b) After (1) the Authority has been issued an owners
24license, (2) the Gaming Board has issued a casino operator
25license, and (3) the Gaming Board has approved the members of

 

 

10000SB0007ham003- 22 -LRB100 06307 SMS 40923 a

1the Casino Board, the Authority may conduct gaming operations
2at a temporary facility, subject to the adopted rules of the
3Gaming Board, for no longer than 24 months after gaming
4operations begin. The Gaming Board may, after holding a public
5hearing, grant an extension so long as a permanent facility is
6not operational and the Authority is working in good faith to
7complete the permanent facility. The Gaming Board may grant
8additional extensions following further public hearings. Each
9extension may be for a period of no longer than 6 months.
 
10    Section 1-47. Freedom of Information Act. The Authority
11shall be a public body as defined in the Freedom of Information
12Act and shall be subject to the provisions of the Freedom of
13Information Act.
 
14    Section 1-50. Transfer of funds. The revenues received by
15the Authority (other than amounts required to be paid pursuant
16to the Illinois Gambling Act and amounts required to pay the
17operating expenses of the Authority, to pay amounts due the
18casino operator licensee pursuant to a casino management
19contract, to repay any borrowing of the Authority made pursuant
20to Section 1-31, to pay debt service on any bonds issued under
21Section 1-75, and to pay any expenses in connection with the
22issuance of such bonds pursuant to Section 1-75 or derivative
23products pursuant to Section 1-85) shall be transferred to the
24City by the Authority. Moneys transferred to the City pursuant

 

 

10000SB0007ham003- 23 -LRB100 06307 SMS 40923 a

1to this Section shall be expended or obligated by the City for
2pension payments in accordance with Public Act 99-506.
 
3    Section 1-60. Auditor General.
4    (a) Prior to the issuance of bonds under this Act, the
5Authority shall submit to the Auditor General a certification
6that:
7        (1) it is legally authorized to issue bonds;
8        (2) scheduled annual payments of principal and
9    interest on the bonds to be issued meet the requirements of
10    Section 1-75 of this Act;
11        (3) no bond shall mature later than 30 years; and
12        (4) after payment of costs of issuance and necessary
13    deposits to funds and accounts established with respect to
14    debt service on the bonds, the net bond proceeds (exclusive
15    of any proceeds to be used to refund outstanding bonds)
16    will be used only for the purposes set forth in this Act.
17    The Authority also shall submit to the Auditor General its
18projections on revenues to be generated and pledged to
19repayment of the bonds as scheduled and such other information
20as the Auditor General may reasonably request.
21    The Auditor General shall examine the certifications and
22information submitted and submit a report to the Authority and
23the Gaming Board indicating whether the required
24certifications, projections, and other information have been
25submitted by the Authority and whether the assumptions

 

 

10000SB0007ham003- 24 -LRB100 06307 SMS 40923 a

1underlying the projections are not unreasonable in the
2aggregate. The Auditor General shall submit the report no later
3than 60 days after receiving the information required to be
4submitted by the Authority.
5    The Auditor General shall submit a bill to the Authority
6for costs associated with the examinations and report required
7under this Section. The Authority shall reimburse in a timely
8manner.
9    (b) The Authority shall enter into an intergovernmental
10agreement with the Auditor General authorizing the Auditor
11General to, every 2 years, (i) review the financial audit of
12the Authority performed by the Authority's certified public
13accountants, (ii) perform a management audit of the Authority,
14and (iii) perform a management audit of the casino operator
15licensee. The Auditor General shall provide the Authority and
16the General Assembly with the audits and shall post on his or
17her Internet website such portions of the audit or other
18financial information as generally would be made publicly
19available for other owners licensees under the Illinois
20Gambling Act. The Auditor General shall submit a bill to the
21Authority for costs associated with the review and the audit
22required under this Section, and the Authority shall reimburse
23the Auditor General for such costs in a timely manner.
 
24    Section 1-62. Advisory committee. An Advisory Committee is
25established to monitor, review, and report on (1) the

 

 

10000SB0007ham003- 25 -LRB100 06307 SMS 40923 a

1Authority's utilization of minority-owned business enterprises
2and female-owned business enterprises, (2) employment of
3females, and (3) employment of minorities with regard to the
4development and construction of the casino as authorized under
5Section 7 of the Illinois Gambling Act. The Authority shall
6work with the Advisory Committee in accumulating necessary
7information for the Committee to submit reports, as necessary,
8to the General Assembly and to the City.
9    The Committee shall consist of 9 members as provided in
10this Section. Five members shall be selected by the Governor
11and 4 members shall be selected by the Mayor. The Governor and
12Mayor shall each appoint at least one current member of the
13General Assembly. The Advisory Committee shall meet
14periodically and shall report the information to the Mayor of
15the City and to the General Assembly by December 31st of every
16year.
17    The Advisory Committee shall be dissolved on the date that
18casino gambling operations are first conducted at a permanent
19facility under the license authorized under Section 7 of the
20Illinois Gambling Act. For the purposes of this Section, the
21terms "female" and "minority person" have the meanings provided
22in Section 2 of the Business Enterprise for Minorities,
23Females, and Persons with Disabilities Act.
 
24    Section 1-65. Acquisition of property; eminent domain
25proceedings. For the lawful purposes of this Act, the City may

 

 

10000SB0007ham003- 26 -LRB100 06307 SMS 40923 a

1acquire, by eminent domain or by condemnation proceedings in
2the manner provided by the Eminent Domain Act, real or personal
3property or interests in real or personal property located in
4the City, and the City may convey to the Authority property so
5acquired. The acquisition of property under this Section is
6declared to be for a public use.
 
7    Section 1-67. Limitations on gaming at Chicago airports.
8The Authority may conduct gaming operations in an airport under
9the administration or control of the Chicago Department of
10Aviation. Gaming operations may be conducted pursuant to this
11Section so long as (i) gaming operations are conducted in a
12secured area that is beyond the Transportation Security
13Administration security checkpoints and only available to
14airline passengers at least 21 years of age who are members of
15a private club, and not to the general public, (ii) gaming
16operations are limited to slot machines, as defined in Section
174 of the Illinois Gambling Act, and (iii) the combined number
18of gaming positions operating in the City at the airports and
19at the temporary and permanent casino facility does not exceed
20the maximum number of gaming positions authorized pursuant to
21subsection (h) of Section 7 of the Illinois Gambling Act.
22Gaming operations at an airport are subject to all applicable
23laws and rules that apply to any other gaming facility under
24this Act or the Illinois Gambling Act.
 

 

 

10000SB0007ham003- 27 -LRB100 06307 SMS 40923 a

1    Section 1-70. Local regulation. In addition to this Act,
2the Illinois Gambling Act, and all of the rules of the Gaming
3Board, the casino facilities and operations therein shall be
4subject to all ordinances and regulations of the City. The
5construction, development, and operation of the casino shall
6comply with all ordinances, regulations, rules, and controls of
7the City, including, but not limited to, those relating to
8zoning and planned development, building, fire prevention, and
9land use. However, the regulation of gaming operations is
10subject to the exclusive jurisdiction of the Gaming Board. The
11Gaming Board shall be responsible for the investigation for and
12issuance of all licenses required by this Act and the Illinois
13Gambling Act.
 
14    Section 1-75. Borrowing.
15    (a) The Authority may borrow money and issue bonds as
16provided in this Section. Bonds of the Authority may be issued
17to provide funds for land acquisition, site assembly and
18preparation, and the design and construction of the casino, as
19defined in the Illinois Gambling Act, all ancillary and related
20facilities comprising the casino complex, and all on-site and
21off-site infrastructure improvements required in connection
22with the development of the casino; to refund (at the time or
23in advance of any maturity or redemption) or redeem any bonds
24of the Authority; to provide or increase a debt service reserve
25fund or other reserves with respect to any or all of its bonds;

 

 

10000SB0007ham003- 28 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 29 -LRB100 06307 SMS 40923 a

1which may be any trust company or bank having the powers of a
2trust company within or without the State. Bonds shall meet the
3following requirements:
4        (1) Bonds may bear interest payable at any time or
5    times and at any rate or rates, notwithstanding any other
6    provision of law to the contrary, and may be subject to
7    such other terms and conditions as may be provided by the
8    resolution or indenture authorizing the issuance of such
9    bonds.
10        (2) Bonds issued pursuant to this Section may be
11    payable on such dates and times as may be provided for by
12    the resolution or indenture authorizing the issuance of
13    such bonds; provided, however, that such bonds shall mature
14    no later than 30 years from the date of issuance.
15        (3) Bonds issued pursuant to this Section may be sold
16    pursuant to notice of sale and public bid or by negotiated
17    sale.
18        (4) Bonds shall be payable at a time or times, in the
19    denominations and form, including book entry form, either
20    coupon, registered, or both, and carry the registration and
21    privileges as to exchange, transfer or conversion, and
22    replacement of mutilated, lost, or destroyed bonds as the
23    resolution or trust indenture may provide.
24        (5) Bonds shall be payable in lawful money of the
25    United States at a designated place.
26        (6) Bonds shall be subject to the terms of purchase,

 

 

10000SB0007ham003- 30 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 31 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 32 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 33 -LRB100 06307 SMS 40923 a

1otherwise against the Authority, irrespective of whether the
2person has notice. No resolution, trust indenture, management
3agreement or financing statement, continuation statement, or
4other instrument adopted or entered into by the Authority need
5be filed or recorded in any public record other than the
6records of the Authority in order to perfect the lien against
7third persons, regardless of any contrary provision of law.
8    (i) Bonds that are being paid or retired by issuance, sale,
9or delivery of bonds, and bonds for which sufficient funds have
10been deposited with the paying agent or trustee to provide for
11payment of principal and interest thereon, and any redemption
12premium, as provided in the authorizing resolution, shall not
13be considered outstanding for the purposes of this subsection.
14    (j) The bonds of the Authority shall not be indebtedness of
15the State. The bonds of the Authority are not general
16obligations of the State and are not secured by a pledge of the
17full faith and credit of the State and the holders of bonds of
18the Authority may not require the application of State revenues
19or funds to the payment of bonds of the Authority. The
20foregoing non-recourse language must be printed in bold-face
21type on the face of the bonds and in the preliminary and final
22official statements on the bonds.
23    (k) The State of Illinois pledges and agrees with the
24owners of the bonds that it will not limit or alter the rights
25and powers vested in the Authority by this Act so as to impair
26the terms of any contract made by the Authority with the owners

 

 

10000SB0007ham003- 34 -LRB100 06307 SMS 40923 a

1or in any way impair the rights and remedies of the owners
2until the bonds, together with interest on them, and all costs
3and expenses in connection with any action or proceedings by or
4on behalf of the owners, are fully met and discharged. The
5Authority is authorized to include this pledge and agreement in
6any contract with the owners of bonds issued under this
7Section.
8    (l) No person holding an elective office in the City, in
9Cook County, or in this State, holding a seat in the General
10Assembly, or serving as a board member, trustee, officer, or
11employee of the Authority, including the spouse of that person,
12may receive a legal, banking, consulting, or other fee related
13to the issuance of bonds. This prohibition shall also apply to
14a company or firm that employs a person holding an elective
15office in the City, in Cook County, or in this State, holding a
16seat in the General Assembly, or serving as a board member,
17trustee, officer, or employee of the Authority, including the
18spouse of that person, if the person or his or her spouse has
19greater than 7.5% ownership of the company or firm.
 
20    Section 1-85. Derivative products. With respect to all or
21part of any issue of its bonds, the Authority may enter into
22agreements or contracts with any necessary or appropriate
23person, which will have the benefit of providing to the
24Authority an interest rate basis, cash flow basis, or other
25basis different from that provided in the bonds for the payment

 

 

10000SB0007ham003- 35 -LRB100 06307 SMS 40923 a

1of interest. Such agreements or contracts may include, without
2limitation, agreements or contracts commonly known as
3"interest rate swap agreements", "forward payment conversion
4agreements", "futures", "options", "puts", or "calls" and
5agreements or contracts providing for payments based on levels
6of or changes in interest rates, agreements or contracts to
7exchange cash flows or a series of payments, or to hedge
8payment, rate spread, or similar exposure. Any such agreement
9or contract shall be solely an obligation or indebtedness of
10the Authority and shall not be an obligation or indebtedness of
11the State, nor shall any party thereto have any recourse
12against the State in connection with the agreement or contract.
 
13    Section 1-90. Legality for investment. The State of
14Illinois, all governmental entities, all public officers,
15banks, bankers, trust companies, savings banks and
16institutions, building and loan associations, savings and loan
17associations, investment companies, and other persons carrying
18on a banking business, insurance companies, insurance
19associations, and other persons carrying on an insurance
20business, and all executors, administrators, guardians,
21trustees, and other fiduciaries may legally invest any sinking
22funds, moneys, or other funds belonging to them or within their
23control in any bonds issued under this Act. However, nothing in
24this Section shall be construed as relieving any person or
25entity from any duty of exercising reasonable care in selecting

 

 

10000SB0007ham003- 36 -LRB100 06307 SMS 40923 a

1securities for purchase or investment.
 
2    Section 1-105. Budgets and reporting.
3    (a) The Casino Board shall annually adopt a budget for each
4fiscal year. The budget may be modified from time to time in
5the same manner and upon the same vote as it may be adopted.
6The budget shall include the Authority's available funds and
7estimated revenues and shall provide for payment of its
8obligations and estimated expenditures for the fiscal year,
9including, without limitation, expenditures for
10administration, operation, maintenance and repairs, debt
11service, and deposits into reserve and other funds and capital
12projects.
13    (b) The Casino Board shall annually cause the finances of
14the Authority to be audited by a firm of certified public
15accountants selected by the Casino Board in accordance with the
16rules of the Gaming Board and post on the Authority's Internet
17website such financial information as is required to be posted
18by all other owners licensees under the Illinois Gambling Act.
19    (c) The Casino Board shall, for each fiscal year, prepare
20an annual report setting forth information concerning its
21activities in the fiscal year and the status of the development
22of the casino. The annual report shall include financial
23information of the Authority consistent with that which is
24required for all other owners licensees under the Illinois
25Gambling Act, the budget for the succeeding fiscal year, and

 

 

10000SB0007ham003- 37 -LRB100 06307 SMS 40923 a

1the current capital plan as of the date of the report. Copies
2of the annual report shall be made available to persons who
3request them and shall be submitted not later than 120 days
4after the end of the Authority's fiscal year or, if the audit
5of the Authority's financial statements is not completed within
6120 days after the end of the Authority's fiscal year, as soon
7as practical after completion of the audit, to the Governor,
8the Mayor, the General Assembly, and the Commission on
9Government Forecasting and Accountability.
 
10    Section 1-110. Deposit and withdrawal of funds.
11    (a) All funds deposited by the Authority in any bank or
12savings and loan association shall be placed in the name of the
13Authority and shall be withdrawn or paid out only by check or
14draft upon the bank or savings and loan association, signed by
152 officers or employees designated by the Casino Board.
16Notwithstanding any other provision of this Section, the Casino
17Board may designate any of its members or any officer or
18employee of the Authority to authorize the wire transfer of
19funds deposited by the secretary-treasurer of funds in a bank
20or savings and loan association for the payment of payroll and
21employee benefits-related expenses.
22    No bank or savings and loan association shall receive
23public funds as permitted by this Section unless it has
24complied with the requirements established pursuant to Section
256 of the Public Funds Investment Act.

 

 

10000SB0007ham003- 38 -LRB100 06307 SMS 40923 a

1    (b) If any officer or employee whose signature appears upon
2any check or draft issued pursuant to this Act ceases (after
3attaching his signature) to hold his or her office before the
4delivery of such a check or draft to the payee, his or her
5signature shall nevertheless be valid and sufficient for all
6purposes with the same effect as if he or she had remained in
7office until delivery thereof.
 
8    Section 1-112. Contracts with the Authority or casino
9operator licensee; disclosure requirements.
10    (a) A bidder, respondent, offeror, or contractor for
11contracts with the Authority or casino operator licensee shall
12disclose the identity of all officers and directors and every
13owner, beneficiary, or person with beneficial interest of more
14than 1% or shareholder entitled to receive more than 1% of the
15total distributable income of any corporation having any
16interest in the contract or in the bidder, respondent, offeror,
17or contractor. The disclosure shall be in writing and attested
18to by an owner, trustee, corporate official, or agent. If stock
19in a corporation is publicly traded and there is no readily
20known individual having greater than a 1% interest, then a
21statement to that effect attested to by an officer or agent of
22the corporation shall fulfill the disclosure statement
23requirement of this Section. A bidder, respondent, offeror, or
24contractor shall notify the Authority of any changes in
25officers, directors, ownership, or individuals having a

 

 

10000SB0007ham003- 39 -LRB100 06307 SMS 40923 a

1beneficial interest of more than 1%. Notwithstanding the
2provisions of this subsection (a), the Gaming Board may adopt
3rules in connection with contractors for contracts with the
4Authority or the casino operator licensee.
5    (b) A bidder, respondent, offeror, or contractor for
6contracts with an annual value of $25,000 or more or for a
7period to exceed one year shall disclose all political
8contributions of the bidder, respondent, offeror, or
9contractor and any affiliated person or entity. Disclosure
10shall include at least the names and addresses of the
11contributors and the dollar amounts of any contributions to any
12political committee made within the previous 2 years. The
13disclosure must be submitted to the Gaming Board with a copy of
14the contract. All such disclosures shall be posted on the
15websites of the Authority and the Gaming Board.
16    (c) As used in this Section:
17    "Contribution" means contribution as defined in Section
189-1.4 of the Election Code.
19    "Affiliated person" means (i) any person with any ownership
20interest or distributive share of the bidding, responding, or
21contracting entity in excess of 1%, (ii) executive employees of
22the bidding, responding, or contracting entity, and (iii) the
23spouse, minor children, and parents of any such persons.
24    "Affiliated entity" means (i) any parent or subsidiary of
25the bidding or contracting entity, (ii) any member of the same
26unitary business group, or (iii) any political committee for

 

 

10000SB0007ham003- 40 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 41 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 42 -LRB100 06307 SMS 40923 a

1    protect against further loss of or damage to Authority
2    property, to prevent or minimize serious disruption in
3    Authority services or to ensure the integrity of Authority
4    records;
5        (6) contracts for professional services other than for
6    management of the casino, except such contracts described
7    in subsection (d) of this Section; and
8        (7) contracts for the use, purchase, delivery,
9    movement, or installation of (i) data processing
10    equipment, software, and services and (ii)
11    telecommunications equipment, software, and services.
12    (d) Contracts for professional services for a term of more
13than one year or contracts that may require payment in excess
14of $25,000 in one year shall be let by a competitive bidding
15process to the most highly qualified firm that agrees to
16compensation and other terms of engagement that are both
17reasonable and acceptable to the Casino Board.
18    (e) All contracts involving less than $25,000 shall be let
19by competitive selection process whenever possible, and in any
20event in a manner calculated to ensure the best interests of
21the public.
22    (f) In determining the responsibility of any proposer, the
23Authority may take into account the proposer's (or an
24individual having a beneficial interest, directly or
25indirectly, of more than 1% in such proposing entity) past
26record of dealings with the Authority, the proposer's

 

 

10000SB0007ham003- 43 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 44 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 45 -LRB100 06307 SMS 40923 a

1including renegotiated contracts and change orders, shall be
2published in an online bulletin. The online bulletin must
3include at least the date first offered, the date submission of
4offers is due, the location that offers are to be submitted to,
5a brief purchase description, the method of source selection,
6information of how to obtain a comprehensive purchase
7description and any disclosure and contract forms, and
8encouragement to prospective vendors to hire qualified
9veterans, as defined by Section 45-67 of the Illinois
10Procurement Code, and Illinois residents discharged from any
11Illinois adult correctional center subject to Gaming Board
12licensing and eligibility rules. Notice of each and every
13contract that is let or awarded, including renegotiated
14contracts and change orders, shall be published in the online
15bulletin and must include at least all of the information
16specified in this subsection (k), as well as the name of the
17successful responsible proposer or offeror, the contract
18price, and the number of unsuccessful responsive proposers and
19any other disclosure specified in this Section. This notice
20must be posted in the online electronic bulletin prior to
21execution of the contract.
 
22    Section 1-130. Affirmative action and equal opportunity
23obligations of Authority.
24    (a) The Authority is subject to the requirements of Article
25IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720

 

 

10000SB0007ham003- 46 -LRB100 06307 SMS 40923 a

1inclusive) of the Chicago Municipal Code, as now or hereafter
2amended, renumbered, or succeeded, concerning a Minority-Owned
3and Women-Owned Business Enterprise Procurement Program for
4construction contracts, and Section 2-92-420 et seq. of the
5Chicago Municipal Code, as now or hereafter amended,
6renumbered, or succeeded, concerning a Minority-Owned and
7Women-Owned Business Enterprise Procurement Program.
8    (b) The Authority is authorized to enter into agreements
9with contractors' associations, labor unions, and the
10contractors working on the development of the casino to
11establish an apprenticeship preparedness training program to
12provide for an increase in the number of minority and female
13journeymen and apprentices in the building trades and to enter
14into agreements with community college districts or other
15public or private institutions to provide readiness training.
16The Authority is further authorized to enter into contracts
17with public and private educational institutions and persons in
18the gaming, entertainment, hospitality, and tourism industries
19to provide training for employment in those industries.
 
20    Section 1-135. Transfer of interest. Neither the Authority
21nor the City may sell, lease, rent, transfer, exchange, or
22otherwise convey any interest that they have in the casino
23without prior approval of the General Assembly.
 
24    Section 1-140. Home rule. The regulation and licensing of

 

 

10000SB0007ham003- 47 -LRB100 06307 SMS 40923 a

1casinos and casino gaming, casino gaming facilities, and casino
2operator licensees under this Act are exclusive powers and
3functions of the State. A home rule unit may not regulate or
4license casinos, casino gaming, casino gaming facilities, or
5casino operator licensees under this Act, except as provided
6under this Act. This Section is a denial and limitation of home
7rule powers and functions under subsection (h) of Section 6 of
8Article VII of the Illinois Constitution.
 
9
Article 5. Fantasy Sports Contest Act

 
10    Section 5-1. Short title. This Article may be cited as the
11Fantasy Sports Contest Act. References in this Article to "this
12Act" mean this Article.
 
13
Article 10. Internet Gaming Act

 
14    Section 10-1. Short title. This Article may be cited as the
15Internet Gaming Act. References in this Article to "this Act"
16mean this Article.
 
17
Article 15. Sports Wagering Act

 
18    Section 15-1. Short title. This Article may be cited as the
19Sports Wagering Act. References in this Article to "this Act"
20mean this Article.
 

 

 

10000SB0007ham003- 48 -LRB100 06307 SMS 40923 a

1
Article 90. Miscellaneous Provisions

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

 

 

10000SB0007ham003- 49 -LRB100 06307 SMS 40923 a

1    generate up to $120 million to $200 million for the State
2    in the form of extra licensing fees, plus an additional
3    $100 million to $300 million in recurring annual tax
4    revenue for the State to help ensure that school, road, and
5    other building projects promised under the capital plan
6    occur on schedule.
7        (7) That Illinois agriculture and other businesses
8    that support and supply the horse racing industry, already
9    a sector that employs over 37,000 Illinoisans, also stand
10    to substantially benefit and would be much more likely to
11    create additional jobs should Illinois horse racing once
12    again become competitive with other states.
13        (8) That by keeping these projects on track, the State
14    can be sure that significant job and economic growth will
15    in fact result from the previously enacted legislation.
16        (9) That gaming machines at Illinois horse racing
17    tracks would create an estimated 1,200 to 1,500 permanent
18    jobs, and an estimated capital investment of up to $200
19    million to $400 million at these racetracks would prompt
20    additional trade organization jobs necessary to construct
21    new facilities or remodel racetracks for the purpose of
22    conducting gaming.
 
23    Section 90-3. The State Officials and Employees Ethics Act
24is amended by changing Section 5-45 as follows:
 

 

 

10000SB0007ham003- 50 -LRB100 06307 SMS 40923 a

1    (5 ILCS 430/5-45)
2    Sec. 5-45. Procurement; revolving door prohibition.
3    (a) No former officer, member, or State employee, or spouse
4or immediate family member living with such person, shall,
5within a period of one year immediately after termination of
6State employment, knowingly accept employment or receive
7compensation or fees for services from a person or entity if
8the officer, member, or State employee, during the year
9immediately preceding termination of State employment,
10participated personally and substantially in the award of State
11contracts, or the issuance of State contract change orders,
12with a cumulative value of $25,000 or more to the person or
13entity, or its parent or subsidiary.
14    (b) No former officer of the executive branch or State
15employee of the executive branch with regulatory or licensing
16authority, or spouse or immediate family member living with
17such person, shall, within a period of one year immediately
18after termination of State employment, knowingly accept
19employment or receive compensation or fees for services from a
20person or entity if the officer or State employee, during the
21year immediately preceding termination of State employment,
22participated personally and substantially in making a
23regulatory or licensing decision that directly applied to the
24person or entity, or its parent or subsidiary.
25    (c) Within 6 months after the effective date of this
26amendatory Act of the 96th General Assembly, each executive

 

 

10000SB0007ham003- 51 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 52 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 53 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 54 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 55 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 56 -LRB100 06307 SMS 40923 a

1treatment and prevention of problem and compulsive gambling.
2Subject to specific appropriation for these stated purposes,
3the program must include all of the following:
4        (1) Establishment and maintenance of a toll-free "800"
5    telephone number to provide crisis counseling and referral
6    services to families experiencing difficulty as a result of
7    problem or compulsive gambling.
8        (2) Promotion of public awareness regarding the
9    recognition and prevention of problem and compulsive
10    gambling.
11        (3) Facilitation, through in-service training and
12    other means, of the availability of effective assistance
13    programs for problem and compulsive gamblers.
14        (4) Conducting studies to identify adults and
15    juveniles in this State who are, or who are at risk of
16    becoming, problem or compulsive gamblers.
17    (b) Subject to appropriation, the Department shall either
18establish and maintain the program or contract with a private
19or public entity for the establishment and maintenance of the
20program. Subject to appropriation, either the Department or the
21private or public entity shall implement the toll-free
22telephone number, promote public awareness, and conduct
23in-service training concerning problem and compulsive
24gambling.
25    (c) Subject to appropriation, the Department shall produce
26and supply the signs specified in Section 10.7 of the Illinois

 

 

10000SB0007ham003- 57 -LRB100 06307 SMS 40923 a

1Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
21975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
3of the Charitable Games Act, and Section 13.1 of the Illinois
4Riverboat Gambling Act.
5(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
6    Section 90-6. The Department of Commerce and Economic
7Opportunity Law of the Civil Administrative Code of Illinois is
8amended by adding Sections 605-530 and 605-535 as follows:
 
9    (20 ILCS 605/605-530 new)
10    Sec. 605-530. The Depressed Communities Economic
11Development Board.
12    (a) The Depressed Communities Economic Development Board
13is created as an advisory board within the Department of
14Commerce and Economic Opportunity. The Board shall consist of
15the following members:
16        (1) 3 members appointed by the Governor, one of whom
17    shall be appointed to serve an initial term of one year and
18    2 of whom shall be appointed to serve an initial term of 2
19    years;
20        (2) 2 members appointed by the Speaker of the House of
21    Representatives, one of whom shall be appointed to serve an
22    initial term of one year and one of whom shall be appointed
23    to serve an initial term of 2 years;
24        (3) 2 members appointed by the President of the Senate,

 

 

10000SB0007ham003- 58 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 59 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 60 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 61 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 62 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 63 -LRB100 06307 SMS 40923 a

1            (G) biotechnology;
2        (2) 2 members appointed by the Speaker of the House of
3    Representatives, one of whom shall be appointed to serve an
4    initial term of one year and one of whom shall be appointed
5    to serve an initial term of 2 years;
6        (3) 2 members appointed by the President of the Senate,
7    one of whom shall be appointed to serve an initial term of
8    one year and one of whom shall be appointed to serve an
9    initial term of 2 years;
10        (4) 2 members appointed by the Minority Leader of the
11    House of Representatives, one of whom shall be appointed to
12    serve an initial term of one year and one of whom shall be
13    appointed to serve an initial term of 2 years; and
14        (5) 2 members appointed by the Minority Leader of the
15    Senate, one of whom shall be appointed to serve an initial
16    term of one year and one of whom shall be appointed to
17    serve an initial term of 2 years.
18    The members of the Commission shall choose a member to
19serve as chair of the Commission. The members of the Commission
20shall be representative, to the extent possible, of the various
21geographic areas of the State. The Director shall serve as an
22ad hoc nonvoting member of the Commission. Vacancies shall be
23filled in the same manner as the original appointments. The
24members of the Commission shall serve without compensation.
25    (c) The Commission shall meet at least 4 times per year,
26with at least one meeting each calendar quarter, at the call of

 

 

10000SB0007ham003- 64 -LRB100 06307 SMS 40923 a

1the director or 4 voting members of the Commission. The staff
2and support for the Commission shall be provided by the
3Department.
4    (d) The Commission and Department are encouraged to involve
5other essential groups in the work of the Commission,
6including, but not limited to:
7        (1) public universities;
8        (2) community colleges;
9        (3) other educational institutions; and
10        (4) the Department of Labor.
11    (e) The Commission shall make recommendations, which must
12be approved by a majority of the members of the Commission, to
13the Department concerning the award of grants from amounts
14appropriated to the Department from the Latino Community
15Economic Development Fund, a special fund in the State
16treasury. The Department shall make grants to public or private
17entities submitting proposals to the Commission to assist in
18the economic development of the Latino community. Grants may be
19used by these entities only for those purposes conditioned with
20the grant. The Commission shall coordinate with the Department
21to develop grant criteria.
22    (f) For the purposes of this Section:
23    "Department" means the Department of Commerce and Economic
24Development.
25    "Director" means the Director of Commerce and Economic
26Development.

 

 

10000SB0007ham003- 65 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 66 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 67 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 68 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 69 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 70 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 71 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 72 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 73 -LRB100 06307 SMS 40923 a

1    the manager shall only be for the purpose of fulfilling its
2    obligations under the management agreement during the term
3    of the agreement.
4        (22) The disclosure of any information requested by the
5    Department to enable it to comply with the reporting
6    requirements and information requests provided for under
7    subsection (p) of this Section.
8    (e) Notwithstanding any other law to the contrary, the
9Department shall select a private manager through a competitive
10request for qualifications process consistent with Section
1120-35 of the Illinois Procurement Code, which shall take into
12account:
13        (1) the offeror's ability to market the Lottery to
14    those residents who are new, infrequent, or lapsed players
15    of the Lottery, especially those who are most likely to
16    make regular purchases on the Internet;
17        (2) the offeror's ability to address the State's
18    concern with the social effects of gambling on those who
19    can least afford to do so;
20        (3) the offeror's ability to provide the most
21    successful management of the Lottery for the benefit of the
22    people of the State based on current and past business
23    practices or plans of the offeror; and
24        (4) the offeror's poor or inadequate past performance
25    in servicing, equipping, operating or managing a lottery on
26    behalf of Illinois, another State or foreign government and

 

 

10000SB0007ham003- 74 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 75 -LRB100 06307 SMS 40923 a

1for qualifications that provide a material advantage whether
2directly or indirectly to any potential offeror, or any
3contractor or subcontractor presently providing goods,
4services, or equipment to the Department to support the
5Lottery, including terms contained in previous responses to
6requests for proposals or qualifications submitted to
7Illinois, another State or foreign government when those terms
8are uniquely associated with a particular potential offeror,
9contractor, or subcontractor. The request for proposals
10offered by the Department on December 22, 2008 as
11"LOT08GAMESYS" and reference number "22016176" is declared
12void.
13    (g) The Department shall select at least 2 offerors as
14finalists to potentially serve as the private manager no later
15than August 9, 2010. Upon making preliminary selections, the
16Department shall schedule a public hearing on the finalists'
17proposals and provide public notice of the hearing at least 7
18calendar days before the hearing. The notice must include all
19of the following:
20        (1) The date, time, and place of the hearing.
21        (2) The subject matter of the hearing.
22        (3) A brief description of the management agreement to
23    be awarded.
24        (4) The identity of the offerors that have been
25    selected as finalists to serve as the private manager.
26        (5) The address and telephone number of the Department.

 

 

10000SB0007ham003- 76 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 77 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 78 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 79 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 80 -LRB100 06307 SMS 40923 a

1subsection (o), shall select a final offeror as the private
2manager and sign the management agreement with the private
3manager.
4    Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
521.9, the Department shall distribute all proceeds of lottery
6tickets and shares sold in the following priority and manner:
7        (1) The payment of prizes and retailer bonuses.
8        (2) The payment of costs incurred in the operation and
9    administration of the Lottery, including the payment of
10    sums due to the private manager under the management
11    agreement with the Department.
12        (3) On the last day of each month or as soon thereafter
13    as possible, the State Comptroller shall direct and the
14    State Treasurer shall transfer from the State Lottery Fund
15    to the Common School Fund an amount that is equal to the
16    proceeds transferred in the corresponding month of fiscal
17    year 2009, as adjusted for inflation, to the Common School
18    Fund.
19        (4) On or before the last day of each fiscal year,
20    deposit any remaining proceeds, subject to payments under
21    items (1), (2), and (3) into the Capital Projects Fund each
22    fiscal year.
23    (p) The Department shall be subject to the following
24reporting and information request requirements:
25        (1) the Department shall submit written quarterly
26    reports to the Governor and the General Assembly on the

 

 

10000SB0007ham003- 81 -LRB100 06307 SMS 40923 a

1    activities and actions of the private manager selected
2    under this Section;
3        (2) upon request of the Chief Procurement Officer, the
4    Department shall promptly produce information related to
5    the procurement activities of the Department and the
6    private manager requested by the Chief Procurement
7    Officer; the Chief Procurement Officer must retain
8    confidential, proprietary, or trade secret information
9    designated by the Department in complete confidence
10    pursuant to subsection (g) of Section 7 of the Freedom of
11    Information Act; and
12        (3) at least 30 days prior to the beginning of the
13    Department's fiscal year, the Department shall prepare an
14    annual written report on the activities of the private
15    manager selected under this Section and deliver that report
16    to the Governor and General Assembly.
17(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17.)
 
18    Section 90-10. The Department of Revenue Law of the Civil
19Administrative Code of Illinois is amended by changing Section
202505-305 as follows:
 
21    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
22    Sec. 2505-305. Investigators.
23    (a) The Department has the power to appoint investigators
24to conduct all investigations, searches, seizures, arrests,

 

 

10000SB0007ham003- 82 -LRB100 06307 SMS 40923 a

1and other duties imposed under the provisions of any law
2administered by the Department. Except as provided in
3subsection (c), these investigators have and may exercise all
4the powers of peace officers solely for the purpose of
5enforcing taxing measures administered by the Department.
6    (b) The Director must authorize to each investigator
7employed under this Section and to any other employee of the
8Department exercising the powers of a peace officer a distinct
9badge that, on its face, (i) clearly states that the badge is
10authorized by the Department and (ii) contains a unique
11identifying number. No other badge shall be authorized by the
12Department.
13    (c) The Department may enter into agreements with the
14Illinois Gaming Board providing that investigators appointed
15under this Section shall exercise the peace officer powers set
16forth in paragraph (20.6) of subsection (c) of Section 5 of the
17Illinois Riverboat Gambling Act.
18(Source: P.A. 96-37, eff. 7-13-09.)
 
19    Section 90-12. The Illinois State Auditing Act is amended
20by changing Section 3-1 as follows:
 
21    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
22    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
23General has jurisdiction over all State agencies to make post
24audits and investigations authorized by or under this Act or

 

 

10000SB0007ham003- 83 -LRB100 06307 SMS 40923 a

1the Constitution.
2    The Auditor General has jurisdiction over local government
3agencies and private agencies only:
4        (a) to make such post audits authorized by or under
5    this Act as are necessary and incidental to a post audit of
6    a State agency or of a program administered by a State
7    agency involving public funds of the State, but this
8    jurisdiction does not include any authority to review local
9    governmental agencies in the obligation, receipt,
10    expenditure or use of public funds of the State that are
11    granted without limitation or condition imposed by law,
12    other than the general limitation that such funds be used
13    for public purposes;
14        (b) to make investigations authorized by or under this
15    Act or the Constitution; and
16        (c) to make audits of the records of local government
17    agencies to verify actual costs of state-mandated programs
18    when directed to do so by the Legislative Audit Commission
19    at the request of the State Board of Appeals under the
20    State Mandates Act.
21    In addition to the foregoing, the Auditor General may
22conduct an audit of the Metropolitan Pier and Exposition
23Authority, the Regional Transportation Authority, the Suburban
24Bus Division, the Commuter Rail Division and the Chicago
25Transit Authority and any other subsidized carrier when
26authorized by the Legislative Audit Commission. Such audit may

 

 

10000SB0007ham003- 84 -LRB100 06307 SMS 40923 a

1be a financial, management or program audit, or any combination
2thereof.
3    The audit shall determine whether they are operating in
4accordance with all applicable laws and regulations. Subject to
5the limitations of this Act, the Legislative Audit Commission
6may by resolution specify additional determinations to be
7included in the scope of the audit.
8    In addition to the foregoing, the Auditor General must also
9conduct a financial audit of the Illinois Sports Facilities
10Authority's expenditures of public funds in connection with the
11reconstruction, renovation, remodeling, extension, or
12improvement of all or substantially all of any existing
13"facility", as that term is defined in the Illinois Sports
14Facilities Authority Act.
15    The Auditor General may also conduct an audit, when
16authorized by the Legislative Audit Commission, of any hospital
17which receives 10% or more of its gross revenues from payments
18from the State of Illinois, Department of Healthcare and Family
19Services (formerly Department of Public Aid), Medical
20Assistance Program.
21    The Auditor General is authorized to conduct financial and
22compliance audits of the Illinois Distance Learning Foundation
23and the Illinois Conservation Foundation.
24    As soon as practical after the effective date of this
25amendatory Act of 1995, the Auditor General shall conduct a
26compliance and management audit of the City of Chicago and any

 

 

10000SB0007ham003- 85 -LRB100 06307 SMS 40923 a

1other entity with regard to the operation of Chicago O'Hare
2International Airport, Chicago Midway Airport and Merrill C.
3Meigs Field. The audit shall include, but not be limited to, an
4examination of revenues, expenses, and transfers of funds;
5purchasing and contracting policies and practices; staffing
6levels; and hiring practices and procedures. When completed,
7the audit required by this paragraph shall be distributed in
8accordance with Section 3-14.
9    The Auditor General shall conduct a financial and
10compliance and program audit of distributions from the
11Municipal Economic Development Fund during the immediately
12preceding calendar year pursuant to Section 8-403.1 of the
13Public Utilities Act at no cost to the city, village, or
14incorporated town that received the distributions.
15    The Auditor General must conduct an audit of the Health
16Facilities and Services Review Board pursuant to Section 19.5
17of the Illinois Health Facilities Planning Act.
18    The Auditor General must conduct an audit of the Chicago
19Casino Development Authority pursuant to Section 1-60 of the
20Chicago Casino Development Authority Act.
21    The Auditor General of the State of Illinois shall annually
22conduct or cause to be conducted a financial and compliance
23audit of the books and records of any county water commission
24organized pursuant to the Water Commission Act of 1985 and
25shall file a copy of the report of that audit with the Governor
26and the Legislative Audit Commission. The filed audit shall be

 

 

10000SB0007ham003- 86 -LRB100 06307 SMS 40923 a

1open to the public for inspection. The cost of the audit shall
2be charged to the county water commission in accordance with
3Section 6z-27 of the State Finance Act. The county water
4commission shall make available to the Auditor General its
5books and records and any other documentation, whether in the
6possession of its trustees or other parties, necessary to
7conduct the audit required. These audit requirements apply only
8through July 1, 2007.
9    The Auditor General must conduct audits of the Rend Lake
10Conservancy District as provided in Section 25.5 of the River
11Conservancy Districts Act.
12    The Auditor General must conduct financial audits of the
13Southeastern Illinois Economic Development Authority as
14provided in Section 70 of the Southeastern Illinois Economic
15Development Authority Act.
16    The Auditor General shall conduct a compliance audit in
17accordance with subsections (d) and (f) of Section 30 of the
18Innovation Development and Economy Act.
19(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
2096-939, eff. 6-24-10.)
 
21    Section 90-15. The State Finance Act is amended by adding
22Sections 5.886, 5.887, 5.888, and 6z-105 and by changing
23Section 6z-45 as follows:
 
24    (30 ILCS 105/5.886 new)

 

 

10000SB0007ham003- 87 -LRB100 06307 SMS 40923 a

1    Sec. 5.886. The Gaming Facilities Fee Revenue Fund.
 
2    (30 ILCS 105/5.887 new)
3    Sec. 5.887. The Depressed Communities Economic Development
4Fund.
 
5    (30 ILCS 105/5.888 new)
6    Sec. 5.888. The Latino Community Economic Development
7Fund.
 
8    (30 ILCS 105/6z-45)
9    Sec. 6z-45. The School Infrastructure Fund.
10    (a) The School Infrastructure Fund is created as a special
11fund in the State Treasury.
12    In addition to any other deposits authorized by law,
13beginning January 1, 2000, on the first day of each month, or
14as soon thereafter as may be practical, the State Treasurer and
15State Comptroller shall transfer the sum of $5,000,000 from the
16General Revenue Fund to the School Infrastructure Fund, except
17that, notwithstanding any other provision of law, and in
18addition to any other transfers that may be provided for by
19law, before June 30, 2012, the Comptroller and the Treasurer
20shall transfer $45,000,000 from the General Revenue Fund into
21the School Infrastructure Fund, and, for fiscal year 2013 only,
22the Treasurer and the Comptroller shall transfer $1,250,000
23from the General Revenue Fund to the School Infrastructure Fund

 

 

10000SB0007ham003- 88 -LRB100 06307 SMS 40923 a

1on the first day of each month; provided, however, that no such
2transfers shall be made from July 1, 2001 through June 30,
32003.
4    (a-5) Money in the School Infrastructure Fund may be used
5to pay the expenses of the State Board of Education, the
6Governor's Office of Management and Budget, and the Capital
7Development Board in administering programs under the School
8Construction Law, the total expenses not to exceed $1,315,000
9in any fiscal year.
10    (b) Subject to the transfer provisions set forth below,
11money in the School Infrastructure Fund shall, if and when the
12State of Illinois incurs any bonded indebtedness for the
13construction of school improvements under subsection (e) of
14Section 5 of the General Obligation Bond Act, be set aside and
15used for the purpose of paying and discharging annually the
16principal and interest on that bonded indebtedness then due and
17payable, and for no other purpose.
18    In addition to other transfers to the General Obligation
19Bond Retirement and Interest Fund made pursuant to Section 15
20of the General Obligation Bond Act, upon each delivery of bonds
21issued for construction of school improvements under the School
22Construction Law, the State Comptroller shall compute and
23certify to the State Treasurer the total amount of principal
24of, interest on, and premium, if any, on such bonds during the
25then current and each succeeding fiscal year. With respect to
26the interest payable on variable rate bonds, such

 

 

10000SB0007ham003- 89 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 90 -LRB100 06307 SMS 40923 a

1of Section 13 of the Illinois Riverboat Gambling Act shall be
2applied, without further direction, as provided in subsection
3(b-3) of Section 5-35 of the School Construction Law.
4    (c) The surplus, if any, in the School Infrastructure Fund
5after payments made pursuant to subsections (a-5), (b), and
6(b-5) of this Section shall, subject to appropriation, be used
7as follows:
8    First - to make 3 payments to the School Technology
9Revolving Loan Fund as follows:
10        Transfer of $30,000,000 in fiscal year 1999;
11        Transfer of $20,000,000 in fiscal year 2000; and
12        Transfer of $10,000,000 in fiscal year 2001.
13    Second - to pay any amounts due for grants for school
14construction projects and debt service under the School
15Construction Law.
16    Third - to pay any amounts due for grants for school
17maintenance projects under the School Construction Law.
18(Source: P.A. 100-23, eff. 7-6-17.)
 
19    (30 ILCS 105/6z-105 new)
20    Sec. 6z-105. The Gaming Facilities Fee Revenue Fund.
21    (a) The Gaming Facilities Fee Revenue Fund is created as a
22special fund in the State treasury.
23    (b) The revenues in the Fund shall be used, subject to
24appropriation, by the Comptroller for the purpose of providing
25appropriations to the Illinois Gaming Board for the

 

 

10000SB0007ham003- 91 -LRB100 06307 SMS 40923 a

1administration and enforcement of the Illinois Gambling Act and
2the applicable provisions of the Chicago Casino Development
3Authority Act, with any remaining amounts transferred in equal
4amounts to the State Construction Account Fund, the Pension
5Stabilization Fund, and the Common School Fund.
6    (c) The Fund shall consist of fee revenues received
7pursuant to subsection (a) of Section 1-45 of the Chicago
8Casino Development Authority Act and pursuant to subsections
9(e-10), (e-15), (h), and (h-5) of Section 7 and subsections
10(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
11Act. All interest earned on moneys in the Fund shall be
12deposited into the Fund.
13    (d) Except as otherwise provided in Section 6z-27 of the
14State Finance Act, the Fund shall not be subject to
15administrative charges or chargebacks, including, but not
16limited to, those authorized under subsection (h) of Section 8
17of this Act.
 
18    Section 90-20. The Illinois Income Tax Act is amended by
19changing Sections 201, 303, 304 and 710 as follows:
 
20    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
21    Sec. 201. Tax imposed.
22    (a) In general. A tax measured by net income is hereby
23imposed on every individual, corporation, trust and estate for
24each taxable year ending after July 31, 1969 on the privilege

 

 

10000SB0007ham003- 92 -LRB100 06307 SMS 40923 a

1of earning or receiving income in or as a resident of this
2State. Such tax shall be in addition to all other occupation or
3privilege taxes imposed by this State or by any municipal
4corporation or political subdivision thereof.
5    (b) Rates. The tax imposed by subsection (a) of this
6Section shall be determined as follows, except as adjusted by
7subsection (d-1):
8        (1) In the case of an individual, trust or estate, for
9    taxable years ending prior to July 1, 1989, an amount equal
10    to 2 1/2% of the taxpayer's net income for the taxable
11    year.
12        (2) In the case of an individual, trust or estate, for
13    taxable years beginning prior to July 1, 1989 and ending
14    after June 30, 1989, an amount equal to the sum of (i) 2
15    1/2% of the taxpayer's net income for the period prior to
16    July 1, 1989, as calculated under Section 202.3, and (ii)
17    3% of the taxpayer's net income for the period after June
18    30, 1989, as calculated under Section 202.3.
19        (3) In the case of an individual, trust or estate, for
20    taxable years beginning after June 30, 1989, and ending
21    prior to January 1, 2011, an amount equal to 3% of the
22    taxpayer's net income for the taxable year.
23        (4) In the case of an individual, trust, or estate, for
24    taxable years beginning prior to January 1, 2011, and
25    ending after December 31, 2010, an amount equal to the sum
26    of (i) 3% of the taxpayer's net income for the period prior

 

 

10000SB0007ham003- 93 -LRB100 06307 SMS 40923 a

1    to January 1, 2011, as calculated under Section 202.5, and
2    (ii) 5% of the taxpayer's net income for the period after
3    December 31, 2010, as calculated under Section 202.5.
4        (5) In the case of an individual, trust, or estate, for
5    taxable years beginning on or after January 1, 2011, and
6    ending prior to January 1, 2015, an amount equal to 5% of
7    the taxpayer's net income for the taxable year.
8        (5.1) In the case of an individual, trust, or estate,
9    for taxable years beginning prior to January 1, 2015, and
10    ending after December 31, 2014, an amount equal to the sum
11    of (i) 5% of the taxpayer's net income for the period prior
12    to January 1, 2015, as calculated under Section 202.5, and
13    (ii) 3.75% of the taxpayer's net income for the period
14    after December 31, 2014, as calculated under Section 202.5.
15        (5.2) In the case of an individual, trust, or estate,
16    for taxable years beginning on or after January 1, 2015,
17    and ending prior to July 1, 2017, an amount equal to 3.75%
18    of the taxpayer's net income for the taxable year.
19        (5.3) In the case of an individual, trust, or estate,
20    for taxable years beginning prior to July 1, 2017, and
21    ending after June 30, 2017, an amount equal to the sum of
22    (i) 3.75% of the taxpayer's net income for the period prior
23    to July 1, 2017, as calculated under Section 202.5, and
24    (ii) 4.95% of the taxpayer's net income for the period
25    after June 30, 2017, as calculated under Section 202.5.
26        (5.4) In the case of an individual, trust, or estate,

 

 

10000SB0007ham003- 94 -LRB100 06307 SMS 40923 a

1    for taxable years beginning on or after July 1, 2017, an
2    amount equal to 4.95% of the taxpayer's net income for the
3    taxable year.
4        (6) In the case of a corporation, for taxable years
5    ending prior to July 1, 1989, an amount equal to 4% of the
6    taxpayer's net income for the taxable year.
7        (7) In the case of a corporation, for taxable years
8    beginning prior to July 1, 1989 and ending after June 30,
9    1989, an amount equal to the sum of (i) 4% of the
10    taxpayer's net income for the period prior to July 1, 1989,
11    as calculated under Section 202.3, and (ii) 4.8% of the
12    taxpayer's net income for the period after June 30, 1989,
13    as calculated under Section 202.3.
14        (8) In the case of a corporation, for taxable years
15    beginning after June 30, 1989, and ending prior to January
16    1, 2011, an amount equal to 4.8% of the taxpayer's net
17    income for the taxable year.
18        (9) In the case of a corporation, for taxable years
19    beginning prior to January 1, 2011, and ending after
20    December 31, 2010, an amount equal to the sum of (i) 4.8%
21    of the taxpayer's net income for the period prior to
22    January 1, 2011, as calculated under Section 202.5, and
23    (ii) 7% of the taxpayer's net income for the period after
24    December 31, 2010, as calculated under Section 202.5.
25        (10) In the case of a corporation, for taxable years
26    beginning on or after January 1, 2011, and ending prior to

 

 

10000SB0007ham003- 95 -LRB100 06307 SMS 40923 a

1    January 1, 2015, an amount equal to 7% of the taxpayer's
2    net income for the taxable year.
3        (11) In the case of a corporation, for taxable years
4    beginning prior to January 1, 2015, and ending after
5    December 31, 2014, an amount equal to the sum of (i) 7% of
6    the taxpayer's net income for the period prior to January
7    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
8    of the taxpayer's net income for the period after December
9    31, 2014, as calculated under Section 202.5.
10        (12) In the case of a corporation, for taxable years
11    beginning on or after January 1, 2015, and ending prior to
12    July 1, 2017, an amount equal to 5.25% of the taxpayer's
13    net income for the taxable year.
14        (13) In the case of a corporation, for taxable years
15    beginning prior to July 1, 2017, and ending after June 30,
16    2017, an amount equal to the sum of (i) 5.25% of the
17    taxpayer's net income for the period prior to July 1, 2017,
18    as calculated under Section 202.5, and (ii) 7% of the
19    taxpayer's net income for the period after June 30, 2017,
20    as calculated under Section 202.5.
21        (14) In the case of a corporation, for taxable years
22    beginning on or after July 1, 2017, an amount equal to 7%
23    of the taxpayer's net income for the taxable year.
24    The rates under this subsection (b) are subject to the
25provisions of Section 201.5.
26    (b-5) Surcharge; sale or exchange of assets, properties,

 

 

10000SB0007ham003- 96 -LRB100 06307 SMS 40923 a

1and intangibles of organization gaming licensees. For each of
2taxable years 2018 through 2026, a surcharge is imposed on all
3taxpayers 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 (i)
6of an organization licensee under the Illinois Horse Racing Act
7of 1975 and (ii) of an organization gaming licensee under the
8Illinois Gambling Act. The amount of the surcharge is equal to
9the amount of federal income tax liability for the taxable year
10attributable to those sales and exchanges. The surcharge
11imposed shall not apply if:
12        (1) the organization gaming license, organization
13    license, or racetrack property 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        licensee or the substantial owners of the initial
18        licensee;
19            (B) cancellation, revocation, or termination of
20        any such license by the Illinois Gaming Board or the
21        Illinois Racing Board;
22            (C) a determination by the Illinois Gaming Board
23        that transfer of the license is in the best interests
24        of Illinois gaming;
25            (D) the death of an owner of the equity interest in
26        a licensee;

 

 

10000SB0007ham003- 97 -LRB100 06307 SMS 40923 a

1            (E) the acquisition of a controlling interest in
2        the stock or substantially all of the assets of a
3        publicly traded company;
4            (F) a transfer by a parent company to a wholly
5        owned subsidiary; or
6            (G) the transfer or sale to or by one person to
7        another person where both persons were initial owners
8        of the license when the license was issued; or
9        (2) the controlling interest in the organization
10    gaming license, organization license, or racetrack
11    property is transferred in a transaction to lineal
12    descendants in which no gain or loss is recognized or as a
13    result of a transaction in accordance with Section 351 of
14    the Internal Revenue Code in which no gain or loss is
15    recognized; or
16        (3) live horse racing was not conducted in 2010 at a
17    racetrack located within 3 miles of the Mississippi River
18    under a license issued pursuant to the Illinois Horse
19    Racing Act of 1975.
20    The transfer of an organization gaming license,
21organization license, or racetrack property by a person other
22than the initial licensee to receive the organization gaming
23license is not subject to a surcharge. The Department shall
24adopt rules necessary to implement and administer this
25subsection.
26    (c) Personal Property Tax Replacement Income Tax.

 

 

10000SB0007ham003- 98 -LRB100 06307 SMS 40923 a

1Beginning on July 1, 1979 and thereafter, in addition to such
2income tax, there is also hereby imposed the Personal Property
3Tax Replacement Income Tax measured by net income on every
4corporation (including Subchapter S corporations), partnership
5and trust, for each taxable year ending after June 30, 1979.
6Such taxes are imposed on the privilege of earning or receiving
7income in or as a resident of this State. The Personal Property
8Tax Replacement Income Tax shall be in addition to the income
9tax imposed by subsections (a) and (b) of this Section and in
10addition to all other occupation or privilege taxes imposed by
11this State or by any municipal corporation or political
12subdivision thereof.
13    (d) Additional Personal Property Tax Replacement Income
14Tax Rates. The personal property tax replacement income tax
15imposed by this subsection and subsection (c) of this Section
16in the case of a corporation, other than a Subchapter S
17corporation and except as adjusted by subsection (d-1), shall
18be an additional amount equal to 2.85% of such taxpayer's net
19income for the taxable year, except that beginning on January
201, 1981, and thereafter, the rate of 2.85% specified in this
21subsection shall be reduced to 2.5%, and in the case of a
22partnership, trust or a Subchapter S corporation shall be an
23additional amount equal to 1.5% of such taxpayer's net income
24for the taxable year.
25    (d-1) Rate reduction for certain foreign insurers. In the
26case of a foreign insurer, as defined by Section 35A-5 of the

 

 

10000SB0007ham003- 99 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 100 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 101 -LRB100 06307 SMS 40923 a

1        (1) A taxpayer shall be allowed a credit equal to .5%
2    of the basis of qualified property placed in service during
3    the taxable year, provided such property is placed in
4    service on or after July 1, 1984. There shall be allowed an
5    additional credit equal to .5% of the basis of qualified
6    property placed in service during the taxable year,
7    provided such property is placed in service on or after
8    July 1, 1986, and the taxpayer's base employment within
9    Illinois has increased by 1% or more over the preceding
10    year as determined by the taxpayer's employment records
11    filed with the Illinois Department of Employment Security.
12    Taxpayers who are new to Illinois shall be deemed to have
13    met the 1% growth in base employment for the first year in
14    which they file employment records with the Illinois
15    Department of Employment Security. The provisions added to
16    this Section by Public Act 85-1200 (and restored by Public
17    Act 87-895) shall be construed as declaratory of existing
18    law and not as a new enactment. If, in any year, the
19    increase in base employment within Illinois over the
20    preceding year is less than 1%, the additional credit shall
21    be limited to that percentage times a fraction, the
22    numerator of which is .5% and the denominator of which is
23    1%, but shall not exceed .5%. The investment credit shall
24    not be allowed to the extent that it would reduce a
25    taxpayer's liability in any tax year below zero, nor may
26    any credit for qualified property be allowed for any year

 

 

10000SB0007ham003- 102 -LRB100 06307 SMS 40923 a

1    other than the year in which the property was placed in
2    service in Illinois. For tax years ending on or after
3    December 31, 1987, and on or before December 31, 1988, the
4    credit shall be allowed for the tax year in which the
5    property is placed in service, or, if the amount of the
6    credit exceeds the tax liability for that year, whether it
7    exceeds the original liability or the liability as later
8    amended, such excess may be carried forward and applied to
9    the tax liability of the 5 taxable years following the
10    excess credit years if the taxpayer (i) makes investments
11    which cause the creation of a minimum of 2,000 full-time
12    equivalent jobs in Illinois, (ii) is located in an
13    enterprise zone established pursuant to the Illinois
14    Enterprise Zone Act and (iii) is certified by the
15    Department of Commerce and Community Affairs (now
16    Department of Commerce and Economic Opportunity) as
17    complying with the requirements specified in clause (i) and
18    (ii) by July 1, 1986. The Department of Commerce and
19    Community Affairs (now Department of Commerce and Economic
20    Opportunity) shall notify the Department of Revenue of all
21    such certifications immediately. For tax years ending
22    after December 31, 1988, the credit shall be allowed for
23    the tax year in which the property is placed in service,
24    or, if the amount of the credit exceeds the tax liability
25    for that year, whether it exceeds the original liability or
26    the liability as later amended, such excess may be carried

 

 

10000SB0007ham003- 103 -LRB100 06307 SMS 40923 a

1    forward and applied to the tax liability of the 5 taxable
2    years following the excess credit years. The credit shall
3    be applied to the earliest year for which there is a
4    liability. If there is credit from more than one tax year
5    that is available to offset a liability, earlier credit
6    shall be applied first.
7        (2) The term "qualified property" means property
8    which:
9            (A) is tangible, whether new or used, including
10        buildings and structural components of buildings and
11        signs that are real property, but not including land or
12        improvements to real property that are not a structural
13        component of a building such as landscaping, sewer
14        lines, local access roads, fencing, parking lots, and
15        other appurtenances;
16            (B) is depreciable pursuant to Section 167 of the
17        Internal Revenue Code, except that "3-year property"
18        as defined in Section 168(c)(2)(A) of that Code is not
19        eligible for the credit provided by this subsection
20        (e);
21            (C) is acquired by purchase as defined in Section
22        179(d) of the Internal Revenue Code;
23            (D) is used in Illinois by a taxpayer who is
24        primarily engaged in manufacturing, or in mining coal
25        or fluorite, or in retailing, or was placed in service
26        on or after July 1, 2006 in a River Edge Redevelopment

 

 

10000SB0007ham003- 104 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 105 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 106 -LRB100 06307 SMS 40923 a

1    the basis of qualified property shall not include costs
2    incurred after December 31, 2018, except for costs incurred
3    pursuant to a binding contract entered into on or before
4    December 31, 2018.
5        (9) Each taxable year ending before December 31, 2000,
6    a partnership may elect to pass through to its partners the
7    credits to which the partnership is entitled under this
8    subsection (e) for the taxable year. A partner may use the
9    credit allocated to him or her under this paragraph only
10    against the tax imposed in subsections (c) and (d) of this
11    Section. If the partnership makes that election, those
12    credits shall be allocated among the partners in the
13    partnership in accordance with the rules set forth in
14    Section 704(b) of the Internal Revenue Code, and the rules
15    promulgated under that Section, and the allocated amount of
16    the credits shall be allowed to the partners for that
17    taxable year. The partnership shall make this election on
18    its Personal Property Tax Replacement Income Tax return for
19    that taxable year. The election to pass through the credits
20    shall be irrevocable.
21        For taxable years ending on or after December 31, 2000,
22    a partner that qualifies its partnership for a subtraction
23    under subparagraph (I) of paragraph (2) of subsection (d)
24    of Section 203 or a shareholder that qualifies a Subchapter
25    S corporation for a subtraction under subparagraph (S) of
26    paragraph (2) of subsection (b) of Section 203 shall be

 

 

10000SB0007ham003- 107 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 108 -LRB100 06307 SMS 40923 a

1    shall be available only in the taxable year in which the
2    property is placed in service in the Enterprise Zone or
3    River Edge Redevelopment Zone and shall not be allowed to
4    the extent that it would reduce a taxpayer's liability for
5    the tax imposed by subsections (a) and (b) of this Section
6    to below zero. For tax years ending on or after December
7    31, 1985, the credit shall be allowed for the tax year in
8    which the property is placed in service, or, if the amount
9    of the credit exceeds the tax liability for that year,
10    whether it exceeds the original liability or the liability
11    as later amended, such excess may be carried forward and
12    applied to the tax liability of the 5 taxable years
13    following the excess credit year. The credit shall be
14    applied to the earliest year for which there is a
15    liability. If there is credit from more than one tax year
16    that is available to offset a liability, the credit
17    accruing first in time shall be applied first.
18        (2) The term qualified property means property which:
19            (A) is tangible, whether new or used, including
20        buildings and structural components of buildings;
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        (f);
26            (C) is acquired by purchase as defined in Section

 

 

10000SB0007ham003- 109 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 110 -LRB100 06307 SMS 40923 a

1    recomputing the investment credit which would have been
2    allowed for the year in which credit for such property was
3    originally allowed by eliminating such property from such
4    computation, and (ii) subtracting such recomputed credit
5    from the amount of credit previously allowed. For the
6    purposes of this paragraph (6), a reduction of the basis of
7    qualified property resulting from a redetermination of the
8    purchase price shall be deemed a disposition of qualified
9    property to the extent of such reduction.
10        (7) There shall be allowed an additional credit equal
11    to 0.5% of the basis of qualified property placed in
12    service during the taxable year in a River Edge
13    Redevelopment Zone, provided such property is placed in
14    service on or after July 1, 2006, and the taxpayer's base
15    employment within Illinois has increased by 1% or more over
16    the preceding year as determined by the taxpayer's
17    employment records filed with the Illinois Department of
18    Employment Security. Taxpayers who are new to Illinois
19    shall be deemed to have met the 1% growth in base
20    employment for the first year in which they file employment
21    records with the Illinois Department of Employment
22    Security. If, in any year, the increase in base employment
23    within Illinois over the preceding year is less than 1%,
24    the additional credit shall be limited to that percentage
25    times a fraction, the numerator of which is 0.5% and the
26    denominator of which is 1%, but shall not exceed 0.5%.

 

 

10000SB0007ham003- 111 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 112 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 113 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 114 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 115 -LRB100 06307 SMS 40923 a

1base income, and further multiplying the product by the tax
2rate imposed by subsections (a) and (b) of this Section.
3    Any credit earned on or after December 31, 1986 under this
4subsection which is unused in the year the credit is computed
5because it exceeds the tax liability imposed by subsections (a)
6and (b) for that year (whether it exceeds the original
7liability or the liability as later amended) may be carried
8forward and applied to the tax liability imposed by subsections
9(a) and (b) of the 5 taxable years following the excess credit
10year, provided that no credit may be carried forward to any
11year ending on or after December 31, 2003. This credit shall be
12applied first to the earliest year for which there is a
13liability. If there is a credit under this subsection from more
14than one tax year that is available to offset a liability the
15earliest credit arising under this subsection shall be applied
16first.
17    If, during any taxable year ending on or after December 31,
181986, the tax imposed by subsections (c) and (d) of this
19Section for which a taxpayer has claimed a credit under this
20subsection (i) is reduced, the amount of credit for such tax
21shall also be reduced. Such reduction shall be determined by
22recomputing the credit to take into account the reduced tax
23imposed by subsections (c) and (d). If any portion of the
24reduced amount of credit has been carried to a different
25taxable year, an amended return shall be filed for such taxable
26year to reduce the amount of credit claimed.

 

 

10000SB0007ham003- 116 -LRB100 06307 SMS 40923 a

1    (j) Training expense credit. Beginning with tax years
2ending on or after December 31, 1986 and prior to December 31,
32003, a taxpayer shall be allowed a credit against the tax
4imposed by subsections (a) and (b) under this Section for all
5amounts paid or accrued, on behalf of all persons employed by
6the taxpayer in Illinois or Illinois residents employed outside
7of Illinois by a taxpayer, for educational or vocational
8training in semi-technical or technical fields or semi-skilled
9or skilled fields, which were deducted from gross income in the
10computation of taxable income. The credit against the tax
11imposed by subsections (a) and (b) shall be 1.6% of such
12training expenses. For partners, shareholders of subchapter S
13corporations, and owners of limited liability companies, if the
14liability company is treated as a partnership for purposes of
15federal and State income taxation, there shall be allowed a
16credit under this subsection (j) to be determined in accordance
17with the determination of income and distributive share of
18income under Sections 702 and 704 and subchapter S of the
19Internal Revenue Code.
20    Any credit allowed under this subsection which is unused in
21the year the credit is earned may be carried forward to each of
22the 5 taxable years following the year for which the credit is
23first computed until it is used. This credit shall be applied
24first to the earliest year for which there is a liability. If
25there is a credit under this subsection from more than one tax
26year that is available to offset a liability the earliest

 

 

10000SB0007ham003- 117 -LRB100 06307 SMS 40923 a

1credit arising under this subsection shall be applied first. No
2carryforward credit may be claimed in any tax year ending on or
3after December 31, 2003.
4    (k) Research and development credit. For tax years ending
5after July 1, 1990 and prior to December 31, 2003, and
6beginning again for tax years ending on or after December 31,
72004, and ending prior to January 1, 2022, a taxpayer shall be
8allowed a credit against the tax imposed by subsections (a) and
9(b) of this Section for increasing research activities in this
10State. The credit allowed against the tax imposed by
11subsections (a) and (b) shall be equal to 6 1/2% of the
12qualifying expenditures for increasing research activities in
13this State. For partners, shareholders of subchapter S
14corporations, and owners of limited liability companies, if the
15liability company is treated as a partnership for purposes of
16federal and State income taxation, there shall be allowed a
17credit under this subsection to be determined in accordance
18with the determination of income and distributive share of
19income under Sections 702 and 704 and subchapter S of the
20Internal Revenue Code.
21    For purposes of this subsection, "qualifying expenditures"
22means the qualifying expenditures as defined for the federal
23credit for increasing research activities which would be
24allowable under Section 41 of the Internal Revenue Code and
25which are conducted in this State, "qualifying expenditures for
26increasing research activities in this State" means the excess

 

 

10000SB0007ham003- 118 -LRB100 06307 SMS 40923 a

1of qualifying expenditures for the taxable year in which
2incurred over qualifying expenditures for the base period,
3"qualifying expenditures for the base period" means the average
4of the qualifying expenditures for each year in the base
5period, and "base period" means the 3 taxable years immediately
6preceding the taxable year for which the determination is being
7made.
8    Any credit in excess of the tax liability for the taxable
9year may be carried forward. A taxpayer may elect to have the
10unused credit shown on its final completed return carried over
11as a credit against the tax liability for the following 5
12taxable years or until it has been fully used, whichever occurs
13first; provided that no credit earned in a tax year ending
14prior to December 31, 2003 may be carried forward to any year
15ending on or after December 31, 2003.
16    If an unused credit is carried forward to a given year from
172 or more earlier years, that credit arising in the earliest
18year will be applied first against the tax liability for the
19given year. If a tax liability for the given year still
20remains, the credit from the next earliest year will then be
21applied, and so on, until all credits have been used or no tax
22liability for the given year remains. Any remaining unused
23credit or credits then will be carried forward to the next
24following year in which a tax liability is incurred, except
25that no credit can be carried forward to a year which is more
26than 5 years after the year in which the expense for which the

 

 

10000SB0007ham003- 119 -LRB100 06307 SMS 40923 a

1credit is given was incurred.
2    No inference shall be drawn from this amendatory Act of the
391st General Assembly in construing this Section for taxable
4years beginning before January 1, 1999.
5    It is the intent of the General Assembly that the research
6and development credit under this subsection (k) shall apply
7continuously for all tax years ending on or after December 31,
82004 and ending prior to January 1, 2022, including, but not
9limited to, the period beginning on January 1, 2016 and ending
10on the effective date of this amendatory Act of the 100th
11General Assembly. All actions taken in reliance on the
12continuation of the credit under this subsection (k) by any
13taxpayer are hereby validated.
14    (l) Environmental Remediation Tax Credit.
15        (i) For tax years ending after December 31, 1997 and on
16    or before December 31, 2001, a taxpayer shall be allowed a
17    credit against the tax imposed by subsections (a) and (b)
18    of this Section for certain amounts paid for unreimbursed
19    eligible remediation costs, as specified in this
20    subsection. For purposes of this Section, "unreimbursed
21    eligible remediation costs" means costs approved by the
22    Illinois Environmental Protection Agency ("Agency") under
23    Section 58.14 of the Environmental Protection Act that were
24    paid in performing environmental remediation at a site for
25    which a No Further Remediation Letter was issued by the
26    Agency and recorded under Section 58.10 of the

 

 

10000SB0007ham003- 120 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 121 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 122 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 123 -LRB100 06307 SMS 40923 a

1subsection (m) if the taxpayer's adjusted gross income for the
2taxable year exceeds (i) $500,000, in the case of spouses
3filing a joint federal tax return or (ii) $250,000, in the case
4of all other taxpayers. This subsection is exempt from the
5provisions of Section 250 of this Act.
6    For purposes of this subsection:
7    "Qualifying pupils" means individuals who (i) are
8residents of the State of Illinois, (ii) are under the age of
921 at the close of the school year for which a credit is
10sought, and (iii) during the school year for which a credit is
11sought were full-time pupils enrolled in a kindergarten through
12twelfth grade education program at any school, as defined in
13this subsection.
14    "Qualified education expense" means the amount incurred on
15behalf of a qualifying pupil in excess of $250 for tuition,
16book fees, and lab fees at the school in which the pupil is
17enrolled during the regular school year.
18    "School" means any public or nonpublic elementary or
19secondary school in Illinois that is in compliance with Title
20VI of the Civil Rights Act of 1964 and attendance at which
21satisfies the requirements of Section 26-1 of the School Code,
22except that nothing shall be construed to require a child to
23attend any particular public or nonpublic school to qualify for
24the credit under this Section.
25    "Custodian" means, with respect to qualifying pupils, an
26Illinois resident who is a parent, the parents, a legal

 

 

10000SB0007ham003- 124 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 125 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 126 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 127 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 128 -LRB100 06307 SMS 40923 a

1    transferred in a transaction to lineal descendants in which
2    no gain or loss is recognized or as a result of a
3    transaction in accordance with Section 351 of the Internal
4    Revenue Code in which no gain or loss is recognized.
5(Source: P.A. 100-22, eff. 7-6-17.)
 
6    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)
7    Sec. 303. (a) In general. Any item of capital gain or loss,
8and any item of income from rents or royalties from real or
9tangible personal property, interest, dividends, and patent or
10copyright royalties, and prizes awarded under the Illinois
11Lottery Law, and, for taxable years ending on or after December
1231, 2018, wagering and gambling winnings from Illinois sources
13as set forth in subsection (e-1) of this Section, to the extent
14such item constitutes nonbusiness income, together with any
15item of deduction directly allocable thereto, shall be
16allocated by any person other than a resident as provided in
17this Section.
18    (b) Capital gains and losses.
19        (1) Real property. Capital gains and losses from sales
20    or exchanges of real property are allocable to this State
21    if the property is located in this State.
22        (2) Tangible personal property. Capital gains and
23    losses from sales or exchanges of tangible personal
24    property are allocable to this State if, at the time of
25    such sale or exchange:

 

 

10000SB0007ham003- 129 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 130 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 131 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 132 -LRB100 06307 SMS 40923 a

1the Illinois Department of Employment Security are allocable to
2this State.
3    (f) Taxability in other state. For purposes of allocation
4of income pursuant to this Section, a taxpayer is taxable in
5another state if:
6        (1) In that state he is subject to a net income tax, a
7    franchise tax measured by net income, a franchise tax for
8    the privilege of doing business, or a corporate stock tax;
9    or
10        (2) That state has jurisdiction to subject the taxpayer
11    to a net income tax regardless of whether, in fact, the
12    state does or does not.
13    (g) Cross references.
14        (1) For allocation of interest and dividends by persons
15    other than residents, see Section 301(c)(2).
16        (2) For allocation of nonbusiness income by residents,
17    see Section 301(a).
18(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
 
19    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
20    Sec. 304. Business income of persons other than residents.
21    (a) In general. The business income of a person other than
22a resident shall be allocated to this State if such person's
23business income is derived solely from this State. If a person
24other than a resident derives business income from this State
25and one or more other states, then, for tax years ending on or

 

 

10000SB0007ham003- 133 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 134 -LRB100 06307 SMS 40923 a

1    times the net annual rental rate. Net annual rental rate is
2    the annual rental rate paid by the person less any annual
3    rental rate received by the person from sub-rentals.
4        (C) The average value of property shall be determined
5    by averaging the values at the beginning and ending of the
6    taxable year but the Director may require the averaging of
7    monthly values during the taxable year if reasonably
8    required to reflect properly the average value of the
9    person's property.
10    (2) Payroll factor.
11        (A) The payroll factor is a fraction, the numerator of
12    which is the total amount paid in this State during the
13    taxable year by the person for compensation, and the
14    denominator of which is the total compensation paid
15    everywhere during the taxable year.
16        (B) Compensation is paid in this State if:
17            (i) The individual's service is performed entirely
18        within this State;
19            (ii) The individual's service is performed both
20        within and without this State, but the service
21        performed without this State is incidental to the
22        individual's service performed within this State; or
23            (iii) Some of the service is performed within this
24        State and either the base of operations, or if there is
25        no base of operations, the place from which the service
26        is directed or controlled is within this State, or the

 

 

10000SB0007ham003- 135 -LRB100 06307 SMS 40923 a

1        base of operations or the place from which the service
2        is directed or controlled is not in any state in which
3        some part of the service is performed, but the
4        individual's residence is in this State.
5            (iv) Compensation paid to nonresident professional
6        athletes.
7            (a) General. The Illinois source income of a
8        nonresident individual who is a member of a
9        professional athletic team includes the portion of the
10        individual's total compensation for services performed
11        as a member of a professional athletic team during the
12        taxable year which the number of duty days spent within
13        this State performing services for the team in any
14        manner during the taxable year bears to the total
15        number of duty days spent both within and without this
16        State during the taxable year.
17            (b) Travel days. Travel days that do not involve
18        either a game, practice, team meeting, or other similar
19        team event are not considered duty days spent in this
20        State. However, such travel days are considered in the
21        total duty days spent both within and without this
22        State.
23            (c) Definitions. For purposes of this subpart
24        (iv):
25                (1) The term "professional athletic team"
26            includes, but is not limited to, any professional

 

 

10000SB0007ham003- 136 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 137 -LRB100 06307 SMS 40923 a

1                participation in instructional leagues, the
2                "All Star Game", or promotional "caravans").
3                Performing a service for a professional
4                athletic team includes conducting training and
5                rehabilitation activities, when such
6                activities are conducted at team facilities.
7                    (B) Also included in duty days are game
8                days, practice days, days spent at team
9                meetings, promotional caravans, preseason
10                training camps, and days served with the team
11                through all post-season games in which the team
12                competes or is scheduled to compete.
13                    (C) Duty days for any person who joins a
14                team during the period from the beginning of
15                the professional athletic team's official
16                pre-season training period through the last
17                game in which the team competes, or is
18                scheduled to compete, shall begin on the day
19                that person joins the team. Conversely, duty
20                days for any person who leaves a team during
21                this period shall end on the day that person
22                leaves the team. Where a person switches teams
23                during a taxable year, a separate duty-day
24                calculation shall be made for the period the
25                person was with each team.
26                    (D) Days for which a member of a

 

 

10000SB0007ham003- 138 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 139 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 140 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 141 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 142 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 143 -LRB100 06307 SMS 40923 a

1        (B-2) Gross receipts from the license, sale, or other
2    disposition of patents, copyrights, trademarks, and
3    similar items of intangible personal property, other than
4    gross receipts governed by paragraph (B-7) of this item
5    (3), may be included in the numerator or denominator of the
6    sales factor only if gross receipts from licenses, sales,
7    or other disposition of such items comprise more than 50%
8    of the taxpayer's total gross receipts included in gross
9    income during the tax year and during each of the 2
10    immediately preceding tax years; provided that, when a
11    taxpayer is a member of a unitary business group, such
12    determination shall be made on the basis of the gross
13    receipts of the entire unitary business group.
14        (B-5) For taxable years ending on or after December 31,
15    2008, except as provided in subsections (ii) through (vii),
16    receipts from the sale of telecommunications service or
17    mobile telecommunications service are in this State if the
18    customer's service address is in this State.
19            (i) For purposes of this subparagraph (B-5), the
20        following terms have the following meanings:
21            "Ancillary services" means services that are
22        associated with or incidental to the provision of
23        "telecommunications services", including but not
24        limited to "detailed telecommunications billing",
25        "directory assistance", "vertical service", and "voice
26        mail services".

 

 

10000SB0007ham003- 144 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 145 -LRB100 06307 SMS 40923 a

1        service" of providing telephone number information,
2        and/or address information.
3            "Home service provider" means the facilities based
4        carrier or reseller with which the customer contracts
5        for the provision of mobile telecommunications
6        services.
7            "Mobile telecommunications service" means
8        commercial mobile radio service, as defined in Section
9        20.3 of Title 47 of the Code of Federal Regulations as
10        in effect on June 1, 1999.
11            "Place of primary use" means the street address
12        representative of where the customer's use of the
13        telecommunications service primarily occurs, which
14        must be the residential street address or the primary
15        business street address of the customer. In the case of
16        mobile telecommunications services, "place of primary
17        use" must be within the licensed service area of the
18        home service provider.
19            "Post-paid telecommunication service" means the
20        telecommunications service obtained by making a
21        payment on a call-by-call basis either through the use
22        of a credit card or payment mechanism such as a bank
23        card, travel card, credit card, or debit card, or by
24        charge made to a telephone number which is not
25        associated with the origination or termination of the
26        telecommunications service. A post-paid calling

 

 

10000SB0007ham003- 146 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 147 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 148 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 149 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 150 -LRB100 06307 SMS 40923 a

1                (b) The call either originates or terminates
2            in this State and the service address is located in
3            this State.
4            (iii) Receipts from the sale of postpaid
5        telecommunications service at retail are in this State
6        if the origination point of the telecommunication
7        signal, as first identified by the service provider's
8        telecommunication system or as identified by
9        information received by the seller from its service
10        provider if the system used to transport
11        telecommunication signals is not the seller's, is
12        located in this State.
13            (iv) Receipts from the sale of prepaid
14        telecommunications service or prepaid mobile
15        telecommunications service at retail are in this State
16        if the purchaser obtains the prepaid card or similar
17        means of conveyance at a location in this State.
18        Receipts from recharging a prepaid telecommunications
19        service or mobile telecommunications service is in
20        this State if the purchaser's billing information
21        indicates a location in this State.
22            (v) Receipts from the sale of private
23        communication services are in this State as follows:
24                (a) 100% of receipts from charges imposed at
25            each channel termination point in this State.
26                (b) 100% of receipts from charges for the total

 

 

10000SB0007ham003- 151 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 152 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 153 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 154 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 155 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 156 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 157 -LRB100 06307 SMS 40923 a

1            broadcasting service in Illinois.
2                (v) In the case where film or radio programming
3            is provided by a taxpayer that is not a network or
4            station to another person for broadcasting in
5            exchange for a fee or other remuneration from that
6            person, the broadcasting service is received at
7            the location of the office of the customer from
8            which the services were ordered in the regular
9            course of the customer's trade or business.
10            Accordingly, in such a case the revenue derived by
11            the taxpayer that is included in the taxpayer's
12            Illinois numerator of the sales factor is the
13            revenue from such customers who receive the
14            broadcasting service in Illinois.
15        (B-8) Gross receipts from winnings under the Illinois
16    Lottery Law from the assignment of a prize under Section
17    13.1 of the Illinois Lottery Law are received in this
18    State. This paragraph (B-8) applies only to taxable years
19    ending on or after December 31, 2013.
20        (B-9) For taxable years ending on or after December 31,
21    2018, gross receipts from winnings from pari-mutuel
22    wagering conducted at a wagering facility licensed under
23    the Illinois Horse Racing Act of 1975 or from winnings from
24    gambling games conducted on a riverboat or in a casino or
25    organization gaming facility licensed under the Illinois
26    Gambling Act are in this State.

 

 

10000SB0007ham003- 158 -LRB100 06307 SMS 40923 a

1        (C) For taxable years ending before December 31, 2008,
2    sales, other than sales governed by paragraphs (B), (B-1),
3    (B-2), and (B-8) are in this State if:
4            (i) The income-producing activity is performed in
5        this State; or
6            (ii) The income-producing activity is performed
7        both within and without this State and a greater
8        proportion of the income-producing activity is
9        performed within this State than without this State,
10        based on performance costs.
11        (C-5) For taxable years ending on or after December 31,
12    2008, sales, other than sales governed by paragraphs (B),
13    (B-1), (B-2), (B-5), and (B-7), are in this State if any of
14    the following criteria are met:
15            (i) Sales from the sale or lease of real property
16        are in this State if the property is located in this
17        State.
18            (ii) Sales from the lease or rental of tangible
19        personal property are in this State if the property is
20        located in this State during the rental period. Sales
21        from the lease or rental of tangible personal property
22        that is characteristically moving property, including,
23        but not limited to, motor vehicles, rolling stock,
24        aircraft, vessels, or mobile equipment are in this
25        State to the extent that the property is used in this
26        State.

 

 

10000SB0007ham003- 159 -LRB100 06307 SMS 40923 a

1            (iii) In the case of interest, net gains (but not
2        less than zero) and other items of income from
3        intangible personal property, the sale is in this State
4        if:
5                (a) in the case of a taxpayer who is a dealer
6            in the item of intangible personal property within
7            the meaning of Section 475 of the Internal Revenue
8            Code, the income or gain is received from a
9            customer in this State. For purposes of this
10            subparagraph, a customer is in this State if the
11            customer is an individual, trust or estate who is a
12            resident of this State and, for all other
13            customers, if the customer's commercial domicile
14            is in this State. Unless the dealer has actual
15            knowledge of the residence or commercial domicile
16            of a customer during a taxable year, the customer
17            shall be deemed to be a customer in this State if
18            the billing address of the customer, as shown in
19            the records of the dealer, is in this State; or
20                (b) in all other cases, if the
21            income-producing activity of the taxpayer is
22            performed in this State or, if the
23            income-producing activity of the taxpayer is
24            performed both within and without this State, if a
25            greater proportion of the income-producing
26            activity of the taxpayer is performed within this

 

 

10000SB0007ham003- 160 -LRB100 06307 SMS 40923 a

1            State than in any other state, based on performance
2            costs.
3            (iv) Sales of services are in this State if the
4        services are received in this State. For the purposes
5        of this section, gross receipts from the performance of
6        services provided to a corporation, partnership, or
7        trust may only be attributed to a state where that
8        corporation, partnership, or trust has a fixed place of
9        business. If the state where the services are received
10        is not readily determinable or is a state where the
11        corporation, partnership, or trust receiving the
12        service does not have a fixed place of business, the
13        services shall be deemed to be received at the location
14        of the office of the customer from which the services
15        were ordered in the regular course of the customer's
16        trade or business. If the ordering office cannot be
17        determined, the services shall be deemed to be received
18        at the office of the customer to which the services are
19        billed. If the taxpayer is not taxable in the state in
20        which the services are received, the sale must be
21        excluded from both the numerator and the denominator of
22        the sales factor. The Department shall adopt rules
23        prescribing where specific types of service are
24        received, including, but not limited to, publishing,
25        and utility service.
26        (D) For taxable years ending on or after December 31,

 

 

10000SB0007ham003- 161 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 162 -LRB100 06307 SMS 40923 a

1        (1) In general. Except as otherwise provided by
2    paragraph (2), business income of an insurance company for
3    a taxable year shall be apportioned to this State by
4    multiplying such income by a fraction, the numerator of
5    which is the direct premiums written for insurance upon
6    property or risk in this State, and the denominator of
7    which is the direct premiums written for insurance upon
8    property or risk everywhere. For purposes of this
9    subsection, the term "direct premiums written" means the
10    total amount of direct premiums written, assessments and
11    annuity considerations as reported for the taxable year on
12    the annual statement filed by the company with the Illinois
13    Director of Insurance in the form approved by the National
14    Convention of Insurance Commissioners or such other form as
15    may be prescribed in lieu thereof.
16        (2) Reinsurance. If the principal source of premiums
17    written by an insurance company consists of premiums for
18    reinsurance accepted by it, the business income of such
19    company shall be apportioned to this State by multiplying
20    such income by a fraction, the numerator of which is the
21    sum of (i) direct premiums written for insurance upon
22    property or risk in this State, plus (ii) premiums written
23    for reinsurance accepted in respect of property or risk in
24    this State, and the denominator of which is the sum of
25    (iii) direct premiums written for insurance upon property
26    or risk everywhere, plus (iv) premiums written for

 

 

10000SB0007ham003- 163 -LRB100 06307 SMS 40923 a

1    reinsurance accepted in respect of property or risk
2    everywhere. For purposes of this paragraph, premiums
3    written for reinsurance accepted in respect of property or
4    risk in this State, whether or not otherwise determinable,
5    may, at the election of the company, be determined on the
6    basis of the proportion which premiums written for
7    reinsurance accepted from companies commercially domiciled
8    in Illinois bears to premiums written for reinsurance
9    accepted from all sources, or, alternatively, in the
10    proportion which the sum of the direct premiums written for
11    insurance upon property or risk in this State by each
12    ceding company from which reinsurance is accepted bears to
13    the sum of the total direct premiums written by each such
14    ceding company for the taxable year. The election made by a
15    company under this paragraph for its first taxable year
16    ending on or after December 31, 2011, shall be binding for
17    that company for that taxable year and for all subsequent
18    taxable years, and may be altered only with the written
19    permission of the Department, which shall not be
20    unreasonably withheld.
21    (c) Financial organizations.
22        (1) In general. For taxable years ending before
23    December 31, 2008, business income of a financial
24    organization shall be apportioned to this State by
25    multiplying such income by a fraction, the numerator of
26    which is its business income from sources within this

 

 

10000SB0007ham003- 164 -LRB100 06307 SMS 40923 a

1    State, and the denominator of which is its business income
2    from all sources. For the purposes of this subsection, the
3    business income of a financial organization from sources
4    within this State is the sum of the amounts referred to in
5    subparagraphs (A) through (E) following, but excluding the
6    adjusted income of an international banking facility as
7    determined in paragraph (2):
8            (A) Fees, commissions or other compensation for
9        financial services rendered within this State;
10            (B) Gross profits from trading in stocks, bonds or
11        other securities managed within this State;
12            (C) Dividends, and interest from Illinois
13        customers, which are received within this State;
14            (D) Interest charged to customers at places of
15        business maintained within this State for carrying
16        debit balances of margin accounts, without deduction
17        of any costs incurred in carrying such accounts; and
18            (E) Any other gross income resulting from the
19        operation as a financial organization within this
20        State. In computing the amounts referred to in
21        paragraphs (A) through (E) of this subsection, any
22        amount received by a member of an affiliated group
23        (determined under Section 1504(a) of the Internal
24        Revenue Code but without reference to whether any such
25        corporation is an "includible corporation" under
26        Section 1504(b) of the Internal Revenue Code) from

 

 

10000SB0007ham003- 165 -LRB100 06307 SMS 40923 a

1        another member of such group shall be included only to
2        the extent such amount exceeds expenses of the
3        recipient directly related thereto.
4        (2) International Banking Facility. For taxable years
5    ending before December 31, 2008:
6            (A) Adjusted Income. The adjusted income of an
7        international banking facility is its income reduced
8        by the amount of the floor amount.
9            (B) Floor Amount. The floor amount shall be the
10        amount, if any, determined by multiplying the income of
11        the international banking facility by a fraction, not
12        greater than one, which is determined as follows:
13                (i) The numerator shall be:
14                The average aggregate, determined on a
15            quarterly basis, of the financial organization's
16            loans to banks in foreign countries, to foreign
17            domiciled borrowers (except where secured
18            primarily by real estate) and to foreign
19            governments and other foreign official
20            institutions, as reported for its branches,
21            agencies and offices within the state on its
22            "Consolidated Report of Condition", Schedule A,
23            Lines 2.c., 5.b., and 7.a., which was filed with
24            the Federal Deposit Insurance Corporation and
25            other regulatory authorities, for the year 1980,
26            minus

 

 

10000SB0007ham003- 166 -LRB100 06307 SMS 40923 a

1                The average aggregate, determined on a
2            quarterly basis, of such loans (other than loans of
3            an international banking facility), as reported by
4            the financial institution for its branches,
5            agencies and offices within the state, on the
6            corresponding Schedule and lines of the
7            Consolidated Report of Condition for the current
8            taxable year, provided, however, that in no case
9            shall the amount determined in this clause (the
10            subtrahend) exceed the amount determined in the
11            preceding clause (the minuend); and
12                (ii) the denominator shall be the average
13            aggregate, determined on a quarterly basis, of the
14            international banking facility's loans to banks in
15            foreign countries, to foreign domiciled borrowers
16            (except where secured primarily by real estate)
17            and to foreign governments and other foreign
18            official institutions, which were recorded in its
19            financial accounts for the current taxable year.
20            (C) Change to Consolidated Report of Condition and
21        in Qualification. In the event the Consolidated Report
22        of Condition which is filed with the Federal Deposit
23        Insurance Corporation and other regulatory authorities
24        is altered so that the information required for
25        determining the floor amount is not found on Schedule
26        A, lines 2.c., 5.b. and 7.a., the financial institution

 

 

10000SB0007ham003- 167 -LRB100 06307 SMS 40923 a

1        shall notify the Department and the Department may, by
2        regulations or otherwise, prescribe or authorize the
3        use of an alternative source for such information. The
4        financial institution shall also notify the Department
5        should its international banking facility fail to
6        qualify as such, in whole or in part, or should there
7        be any amendment or change to the Consolidated Report
8        of Condition, as originally filed, to the extent such
9        amendment or change alters the information used in
10        determining the floor amount.
11        (3) For taxable years ending on or after December 31,
12    2008, the business income of a financial organization shall
13    be apportioned to this State by multiplying such income by
14    a fraction, the numerator of which is its gross receipts
15    from sources in this State or otherwise attributable to
16    this State's marketplace and the denominator of which is
17    its gross receipts everywhere during the taxable year.
18    "Gross receipts" for purposes of this subparagraph (3)
19    means gross income, including net taxable gain on
20    disposition of assets, including securities and money
21    market instruments, when derived from transactions and
22    activities in the regular course of the financial
23    organization's trade or business. The following examples
24    are illustrative:
25            (i) Receipts from the lease or rental of real or
26        tangible personal property are in this State if the

 

 

10000SB0007ham003- 168 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 169 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 170 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 171 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 172 -LRB100 06307 SMS 40923 a

1                amount described in subparagraph (A) of
2                paragraph (1) of this subsection from such
3                funds and such securities by a fraction, the
4                numerator of which is the gross income from
5                such funds and such securities which are
6                properly assigned to a fixed place of business
7                of the taxpayer within this State and the
8                denominator of which is the gross income from
9                all such funds and such securities.
10                    (C) The amount of interest, dividends,
11                gains, and 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 (but excluding amounts described
16                in subparagraphs (A) or (B) of this paragraph),
17                attributable to this State and included in the
18                numerator is determined by multiplying the
19                amount described in subparagraph (B) of
20                paragraph (1) of this subsection by a fraction,
21                the numerator of which is the gross income from
22                such trading assets and activities which are
23                properly assigned to a fixed place of business
24                of the taxpayer within this State and the
25                denominator of which is the gross income from
26                all such assets and activities.

 

 

10000SB0007ham003- 173 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 174 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 175 -LRB100 06307 SMS 40923 a

1                services of such employees are performed, as of
2                the last day of the taxable year.
3        (4) (Blank).
4        (5) (Blank).
5    (c-1) Federally regulated exchanges. For taxable years
6ending on or after December 31, 2012, business income of a
7federally regulated exchange shall, at the option of the
8federally regulated exchange, be apportioned to this State by
9multiplying such income by a fraction, the numerator of which
10is its business income from sources within this State, and the
11denominator of which is its business income from all sources.
12For purposes of this subsection, the business income within
13this State of a federally regulated exchange is the sum of the
14following:
15        (1) Receipts attributable to transactions executed on
16    a physical trading floor if that physical trading floor is
17    located in this State.
18        (2) Receipts attributable to all other matching,
19    execution, or clearing transactions, including without
20    limitation receipts from the provision of matching,
21    execution, or clearing services to another entity,
22    multiplied by (i) for taxable years ending on or after
23    December 31, 2012 but before December 31, 2013, 63.77%; and
24    (ii) for taxable years ending on or after December 31,
25    2013, 27.54%.
26        (3) All other receipts not governed by subparagraphs

 

 

10000SB0007ham003- 176 -LRB100 06307 SMS 40923 a

1    (1) or (2) of this subsection (c-1), to the extent the
2    receipts would be characterized as "sales in this State"
3    under item (3) of subsection (a) of this Section.
4    "Federally regulated exchange" means (i) a "registered
5entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
6or (C), (ii) an "exchange" or "clearing agency" within the
7meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
8entities regulated under any successor regulatory structure to
9the foregoing, and (iv) all taxpayers who are members of the
10same unitary business group as a federally regulated exchange,
11determined without regard to the prohibition in Section
121501(a)(27) of this Act against including in a unitary business
13group taxpayers who are ordinarily required to apportion
14business income under different subsections of this Section;
15provided that this subparagraph (iv) shall apply only if 50% or
16more of the business receipts of the unitary business group
17determined by application of this subparagraph (iv) for the
18taxable year are attributable to the matching, execution, or
19clearing of transactions conducted by an entity described in
20subparagraph (i), (ii), or (iii) of this paragraph.
21    In no event shall the Illinois apportionment percentage
22computed in accordance with this subsection (c-1) for any
23taxpayer for any tax year be less than the Illinois
24apportionment percentage computed under this subsection (c-1)
25for that taxpayer for the first full tax year ending on or
26after December 31, 2013 for which this subsection (c-1) applied

 

 

10000SB0007ham003- 177 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 178 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 179 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 180 -LRB100 06307 SMS 40923 a

1    mile fraction and the freight revenue mile fraction,
2    weighted to reflect the person's relative gross receipts
3    from passenger and freight airline transportation.
4    (e) Combined apportionment. Where 2 or more persons are
5engaged in a unitary business as described in subsection
6(a)(27) of Section 1501, a part of which is conducted in this
7State by one or more members of the group, the business income
8attributable to this State by any such member or members shall
9be apportioned by means of the combined apportionment method.
10    (f) Alternative allocation. If the allocation and
11apportionment provisions of subsections (a) through (e) and of
12subsection (h) do not, for taxable years ending before December
1331, 2008, fairly represent the extent of a person's business
14activity in this State, or, for taxable years ending on or
15after December 31, 2008, fairly represent the market for the
16person's goods, services, or other sources of business income,
17the person may petition for, or the Director may, without a
18petition, permit or require, in respect of all or any part of
19the person's business activity, if reasonable:
20        (1) Separate accounting;
21        (2) The exclusion of any one or more factors;
22        (3) The inclusion of one or more additional factors
23    which will fairly represent the person's business
24    activities or market in this State; or
25        (4) The employment of any other method to effectuate an
26    equitable allocation and apportionment of the person's

 

 

10000SB0007ham003- 181 -LRB100 06307 SMS 40923 a

1    business income.
2    (g) Cross reference. For allocation of business income by
3residents, see Section 301(a).
4    (h) For tax years ending on or after December 31, 1998, the
5apportionment factor of persons who apportion their business
6income to this State under subsection (a) shall be equal to:
7        (1) for tax years ending on or after December 31, 1998
8    and before December 31, 1999, 16 2/3% of the property
9    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
10    the sales factor;
11        (2) for tax years ending on or after December 31, 1999
12    and before December 31, 2000, 8 1/3% of the property factor
13    plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
14    factor;
15        (3) for tax years ending on or after December 31, 2000,
16    the sales factor.
17If, in any tax year ending on or after December 31, 1998 and
18before December 31, 2000, the denominator of the payroll,
19property, or sales factor is zero, the apportionment factor
20computed in paragraph (1) or (2) of this subsection for that
21year shall be divided by an amount equal to 100% minus the
22percentage weight given to each factor whose denominator is
23equal to zero.
24(Source: P.A. 99-642, eff. 7-28-16; 100-201, eff. 8-18-17.)
 
25    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)

 

 

10000SB0007ham003- 182 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 183 -LRB100 06307 SMS 40923 a

1    individuals provided in subsection (b) of Section 201,
2    provided that the person making the payment is required to
3    withhold under Section 3402(q) of the Internal Revenue
4    Code.
5    (b) Credit for taxes withheld. Any amount withheld under
6Subsection (a) shall be a credit against the Illinois income
7tax liability of the person to whom the payment of winnings was
8made for the taxable year in which that person incurred an
9Illinois income tax liability with respect to those winnings.
10(Source: P.A. 98-496, eff. 1-1-14.)
 
11    Section 90-23. The Property Tax Code is amended by adding
12Section 15-144 as follows:
 
13    (35 ILCS 200/15-144 new)
14    Sec. 15-144. Chicago Casino Development Authority. All
15property owned by the Chicago Casino Development Authority is
16exempt. Any property owned by the Chicago Casino Development
17Authority and leased to any other entity is not exempt.
 
18    Section 90-24. The Illinois Municipal Code is amended by
19adding Section 8-10-2.6 as follows:
 
20    (65 ILCS 5/8-10-2.6 new)
21    Sec. 8-10-2.6. Chicago Casino Development Authority.
22Except as otherwise provided in the Chicago Casino Development

 

 

10000SB0007ham003- 184 -LRB100 06307 SMS 40923 a

1Authority Act, this Division 10 applies to purchase orders and
2contracts relating to the Chicago Casino Development
3Authority.
 
4    Section 90-25. The Joliet Regional Port District Act is
5amended by changing Section 5.1 as follows:
 
6    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
7    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
8any other provision of this Act, the District may not regulate
9the operation, conduct, or navigation of any riverboat gambling
10casino licensed under the Illinois Riverboat Gambling Act, and
11the District may not license, tax, or otherwise levy any
12assessment of any kind on any riverboat gambling casino
13licensed under the Illinois Riverboat Gambling Act. The General
14Assembly declares that the powers to regulate the operation,
15conduct, and navigation of riverboat gambling casinos and to
16license, tax, and levy assessments upon riverboat gambling
17casinos are exclusive powers of the State of Illinois and the
18Illinois Gaming Board as provided in the Illinois Riverboat
19Gambling Act.
20(Source: P.A. 87-1175.)
 
21    Section 90-30. The Consumer Installment Loan Act is amended
22by changing Section 12.5 as follows:
 

 

 

10000SB0007ham003- 185 -LRB100 06307 SMS 40923 a

1    (205 ILCS 670/12.5)
2    Sec. 12.5. Limited purpose branch.
3    (a) Upon the written approval of the Director, a licensee
4may maintain a limited purpose branch for the sole purpose of
5making loans as permitted by this Act. A limited purpose branch
6may include an automatic loan machine. No other activity shall
7be conducted at the site, including but not limited to,
8accepting payments, servicing the accounts, or collections.
9    (b) The licensee must submit an application for a limited
10purpose branch to the Director on forms prescribed by the
11Director with an application fee of $300. The approval for the
12limited purpose branch must be renewed concurrently with the
13renewal of the licensee's license along with a renewal fee of
14$300 for the limited purpose branch.
15    (c) The books, accounts, records, and files of the limited
16purpose branch's transactions shall be maintained at the
17licensee's licensed location. The licensee shall notify the
18Director of the licensed location at which the books, accounts,
19records, and files shall be maintained.
20    (d) The licensee shall prominently display at the limited
21purpose branch the address and telephone number of the
22licensee's licensed location.
23    (e) No other business shall be conducted at the site of the
24limited purpose branch unless authorized by the Director.
25    (f) The Director shall make and enforce reasonable rules
26for the conduct of a limited purpose branch.

 

 

10000SB0007ham003- 186 -LRB100 06307 SMS 40923 a

1    (g) A limited purpose branch may not be located within
21,000 feet of a facility operated by an inter-track wagering
3licensee or an organization licensee subject to the Illinois
4Horse Racing Act of 1975, on a riverboat or in a casino subject
5to the Illinois Riverboat Gambling Act, or within 1,000 feet of
6the location at which the riverboat docks or within 1,000 feet
7of a casino.
8(Source: P.A. 90-437, eff. 1-1-98.)
 
9    Section 90-35. The Illinois Horse Racing Act of 1975 is
10amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
1120, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,
12and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.34, 19.5,
1334.3, and 56 as follows:
 
14    (230 ILCS 5/1.2)
15    Sec. 1.2. Legislative intent. This Act is intended to
16benefit the people of the State of Illinois by encouraging the
17breeding and production of race horses, assisting economic
18development and promoting Illinois tourism. The General
19Assembly finds and declares it to be the public policy of the
20State of Illinois to:
21    (a) support and enhance Illinois' horse racing industry,
22which is a significant component within the agribusiness
23industry;
24    (b) ensure that Illinois' horse racing industry remains

 

 

10000SB0007ham003- 187 -LRB100 06307 SMS 40923 a

1competitive with neighboring states;
2    (c) stimulate growth within Illinois' horse racing
3industry, thereby encouraging new investment and development
4to produce additional tax revenues and to create additional
5jobs;
6    (d) promote the further growth of tourism;
7    (e) encourage the breeding of thoroughbred and
8standardbred horses in this State; and
9    (f) ensure that public confidence and trust in the
10credibility and integrity of racing operations and the
11regulatory process is maintained.
12(Source: P.A. 91-40, eff. 6-25-99.)
 
13    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
14    Sec. 3.11. "Organization Licensee" means any person
15receiving an organization license from the Board to conduct a
16race meeting or meetings. With respect only to organization
17gaming, "organization licensee" includes the authorization for
18an organization gaming license under subsection (a) of Section
1956 of this Act.
20(Source: P.A. 79-1185.)
 
21    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
22    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
23system of wagering" means a form of wagering on the outcome of
24horse races in which wagers are made in various denominations

 

 

10000SB0007ham003- 188 -LRB100 06307 SMS 40923 a

1on a horse or horses and all wagers for each race are pooled
2and held by a licensee for distribution in a manner approved by
3the Board. "Pari-mutuel system of wagering" shall not include
4wagering on historic races. Wagers may be placed via any method
5or at any location authorized under this Act.
6(Source: P.A. 96-762, eff. 8-25-09.)
 
7    (230 ILCS 5/3.31 new)
8    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
9receipts" means the gross receipts less winnings paid to
10wagerers.
 
11    (230 ILCS 5/3.32 new)
12    Sec. 3.32. Gross receipts. "Gross receipts" means the total
13amount of money exchanged for the purchase of chips, tokens, or
14electronic cards by riverboat or casino patrons or organization
15gaming patrons.
 
16    (230 ILCS 5/3.33 new)
17    Sec. 3.33. Organization gaming facility. "Organization
18gaming facility" means that portion of an organization
19licensee's racetrack facilities at which gaming authorized
20under Section 7.7 of the Illinois Gambling Act is conducted.
 
21    (230 ILCS 5/3.34 new)
22    Sec. 3.34. Organization gaming license. "Organization

 

 

10000SB0007ham003- 189 -LRB100 06307 SMS 40923 a

1gaming license" means a license issued by the Illinois Gaming
2Board under Section 7.7 of the Illinois Gambling Act
3authorizing gaming pursuant to that Section at an organization
4gaming facility.
 
5    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
6    Sec. 6. Restrictions on Board members.
7    (a) No person shall be appointed a member of the Board or
8continue to be a member of the Board if the person or any
9member of their immediate family is a member of the Board of
10Directors, employee, or financially interested in any of the
11following: (i) any licensee or other person who has applied for
12racing dates to the Board, or the operations thereof including,
13but not limited to, concessions, data processing, track
14maintenance, track security, and pari-mutuel operations,
15located, scheduled or doing business within the State of
16Illinois, (ii) any race horse competing at a meeting under the
17Board's jurisdiction, or (iii) any licensee under the Illinois
18Gambling Act. No person shall be appointed a member of the
19Board or continue to be a member of the Board who is (or any
20member of whose family is) a member of the Board of Directors
21of, or who is a person financially interested in, any licensee
22or other person who has applied for racing dates to the Board,
23or the operations thereof including, but not limited to,
24concessions, data processing, track maintenance, track
25security and pari-mutuel operations, located, scheduled or

 

 

10000SB0007ham003- 190 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 191 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 192 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 193 -LRB100 06307 SMS 40923 a

1Quarter Horse races at the Illinois State Fair and at the
2DuQuoin State Fairgrounds during the scheduled dates of each
3fair. The Board shall not require and the Department of
4Agriculture shall be exempt from the requirements of Sections
515.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
6(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
7and 25. The Board and the Department of Agriculture may extend
8any or all of these exemptions to any contractor or agent
9engaged by the Department of Agriculture to conduct its race
10meetings when the Board determines that this would best serve
11the public interest and the interest of horse racing.
12    Notwithstanding any provision of law to the contrary, it
13shall be lawful for any licensee to operate pari-mutuel
14wagering or contract with the Department of Agriculture to
15operate pari-mutuel wagering at the DuQuoin State Fairgrounds
16or for the Department to enter into contracts with a licensee,
17employ its owners, employees or agents and employ such other
18occupation licensees as the Department deems necessary in
19connection with race meetings and wagerings.
20    (b) The Board is vested with the full power to promulgate
21reasonable rules and regulations for the purpose of
22administering the provisions of this Act and to prescribe
23reasonable rules, regulations and conditions under which all
24horse race meetings or wagering in the State shall be
25conducted. Such reasonable rules and regulations are to provide
26for the prevention of practices detrimental to the public

 

 

10000SB0007ham003- 194 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 195 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 196 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 197 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 198 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 199 -LRB100 06307 SMS 40923 a

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

 

 

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

 

 

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1        (1) who has been convicted of a crime;
2        (2) who is unqualified to perform the duties required
3    of such applicant;
4        (3) who fails to disclose or states falsely any
5    information called for in the application;
6        (4) who has been found guilty of a violation of this
7    Act or of the rules and regulations of the Board; or
8        (5) whose license or permit has been suspended, revoked
9    or denied for just cause in any other state.
10    (d) The Board may suspend or revoke any occupation license:
11        (1) for violation of any of the provisions of this Act;
12    or
13        (2) for violation of any of the rules or regulations of
14    the Board; or
15        (3) for any cause which, if known to the Board, would
16    have justified the Board in refusing to issue such
17    occupation license; or
18        (4) for any other just cause.
19    (e)   Each applicant shall submit his or her fingerprints
20to the Department of State Police in the form and manner
21prescribed by the Department of State Police. These
22fingerprints shall be checked against the fingerprint records
23now and hereafter filed in the Department of State Police and
24Federal Bureau of Investigation criminal history records
25databases. The Department of State Police shall charge a fee
26for conducting the criminal history records check, which shall

 

 

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1be deposited in the State Police Services Fund and shall not
2exceed the actual cost of the records check. The Department of
3State Police shall furnish, pursuant to positive
4identification, records of conviction to the Board. Each
5applicant for licensure shall submit with his occupation
6license application, on forms provided by the Board, 2 sets of
7his fingerprints. All such applicants shall appear in person at
8the location designated by the Board for the purpose of
9submitting such sets of fingerprints; however, with the prior
10approval of a State steward, an applicant may have such sets of
11fingerprints taken by an official law enforcement agency and
12submitted to the Board.
13    (f) The Board may, in its discretion, issue an occupation
14license without submission of fingerprints if an applicant has
15been duly licensed in another recognized racing jurisdiction
16after submitting fingerprints that were subjected to a Federal
17Bureau of Investigation criminal history background check in
18that jurisdiction.
19    (g) Beginning on the date when any organization licensee
20begins conducting gaming pursuant to an organization gaming
21license issued under the Illinois Gambling Act, the Board may
22charge each applicant a reasonable non-refundable fee to defray
23the costs associated with the background investigation
24conducted by the Board. This fee shall be exclusive of any
25other fee or fees charged in connection with an application for
26and, if applicable, the issuance of, an organization gaming

 

 

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

 

 

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1gaming pursuant to an organization gaming license issued under
2the Illinois Gambling Act, the application fee for racing dates
3imposed by this subsection (a) shall be $10,000 and the
4application fee for racing dates in 2 or 3 successive calendar
5years as provided in subsection (b) of Section 21 shall be
6$20,000. All filing fees shall be deposited into the Horse
7Racing Fund.
8    (b) In addition to the filing fee imposed by subsection (a)
9of $1000 and the fees provided in subsection (j) of Section 20,
10each organization licensee shall pay a license fee of $100 for
11each racing program on which its daily pari-mutuel handle is
12$400,000 or more but less than $700,000, and a license fee of
13$200 for each racing program on which its daily pari-mutuel
14handle is $700,000 or more. The additional fees required to be
15paid under this Section by this amendatory Act of 1982 shall be
16remitted by the organization licensee to the Illinois Racing
17Board with each day's graduated privilege tax or pari-mutuel
18tax and breakage as provided under Section 27. Beginning on the
19date when any organization licensee begins conducting gaming
20pursuant to an organization gaming license issued under the
21Illinois Gambling Act, the license fee imposed by this
22subsection (b) shall be $200 for each racing program on which
23the organization licensee's daily pari-mutuel handle is
24$100,000 or more, but less than $400,000, and the license fee
25imposed by this subsection (b) shall be $400 for each racing
26program on which the organization licensee's daily pari-mutuel

 

 

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1handle is $400,000 or more.
2    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
3Municipal Code," approved May 29, 1961, as now or hereafter
4amended, shall not apply to any license under this Act.
5(Source: P.A. 97-1060, eff. 8-24-12.)
 
6    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
7    Sec. 19. (a) No organization license may be granted to
8conduct a horse race meeting:
9        (1) except as provided in subsection (c) of Section 21
10    of this Act, to any person at any place within 35 miles of
11    any other place licensed by the Board to hold a race
12    meeting on the same date during the same hours, the mileage
13    measurement used in this subsection (a) shall be certified
14    to the Board by the Bureau of Systems and Services in the
15    Illinois Department of Transportation as the most commonly
16    used public way of vehicular travel;
17        (2) to any person in default in the payment of any
18    obligation or debt due the State under this Act, provided
19    no applicant shall be deemed in default in the payment of
20    any obligation or debt due to the State under this Act as
21    long as there is pending a hearing of any kind relevant to
22    such matter;
23        (3) to any person who has been convicted of the
24    violation of any law of the United States or any State law
25    which provided as all or part of its penalty imprisonment

 

 

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

 

 

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1directly or indirectly, by such ineligible person or by a
2person which controls, directly or indirectly, such ineligible
3person shall also be ineligible.
4(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
5    (230 ILCS 5/19.5 new)
6    Sec. 19.5. Standardbred racetrack in Cook County.
7Notwithstanding anything in this Act to the contrary, in
8