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

 

 

10000SB0007ham003- 200 -LRB100 06307 SMS 40923 a

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:

 

 

10000SB0007ham003- 201 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 202 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 203 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 205 -LRB100 06307 SMS 40923 a

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,

 

 

10000SB0007ham003- 207 -LRB100 06307 SMS 40923 a

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
8addition to organization licenses issued by the Board on the
9effective date of this amendatory Act of the 100th General
10Assembly, the Board shall issue an organization license limited
11to standardbred racing to a racetrack located in Cook County.
12The organization license shall be granted upon application, and
13the licensee shall have all of the current and future rights of
14existing Illinois racetracks, including, but not limited to,
15the ability to obtain an inter-track wagering license, the
16ability to obtain inter-track wagering location licenses, the
17ability to obtain an organization gaming license pursuant to
18the Illinois Gambling Act, and the ability to offer internet
19wagering on horse racing.
 
20    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
21    Sec. 20. (a) Any person desiring to conduct a horse race
22meeting may apply to the Board for an organization license. The
23application shall be made on a form prescribed and furnished by
24the Board. The application shall specify:

 

 

10000SB0007ham003- 208 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 209 -LRB100 06307 SMS 40923 a

1    (c) The application shall specify:
2        (1) the name of the persons, association, trust, or
3    corporation making such application; and
4        (2) the principal post office address of the applicant;
5        (3) if the applicant is a trustee, the names and
6    addresses of the beneficiaries; if the applicant is a
7    corporation, the names and post office addresses of all
8    officers, stockholders and directors; or if such
9    stockholders hold stock as a nominee or fiduciary, the
10    names and post office addresses of the parties these
11    persons, partnerships, corporations, or trusts who are the
12    beneficial owners thereof or who are beneficially
13    interested therein; and if the applicant is a partnership,
14    the names and post office addresses of all partners,
15    general or limited; if the applicant is a limited liability
16    company, the names and addresses of the manager and
17    members; and if the applicant is any other entity, the
18    names and addresses of all officers or other authorized
19    persons of the entity corporation, the name of the state of
20    its incorporation shall be specified.
21    (d) The applicant shall execute and file with the Board a
22good faith affirmative action plan to recruit, train, and
23upgrade minorities in all classifications within the
24association.
25    (e) With such application there shall be delivered to the
26Board a certified check or bank draft payable to the order of

 

 

10000SB0007ham003- 210 -LRB100 06307 SMS 40923 a

1the Board for an amount equal to $1,000. All applications for
2the issuance of an organization license shall be filed with the
3Board before August 1 of the year prior to the year for which
4application is made and shall be acted upon by the Board at a
5meeting to be held on such date as shall be fixed by the Board
6during the last 15 days of September of such prior year. At
7such meeting, the Board shall announce the award of the racing
8meets, live racing schedule, and designation of host track to
9the applicants and its approval or disapproval of each
10application. No announcement shall be considered binding until
11a formal order is executed by the Board, which shall be
12executed no later than October 15 of that prior year. Absent
13the agreement of the affected organization licensees, the Board
14shall not grant overlapping race meetings to 2 or more tracks
15that are within 100 miles of each other to conduct the
16thoroughbred racing.
17    (e-1) In awarding standardbred racing dates for calendar
18year 2019, the Board shall award at least 160 racing dates, and
19each organization licensee shall average at least 10 races for
20each racing date awarded. In awarding standardbred racing dates
21for calendar year 2020, the Board shall award at least 200
22racing dates, and each organization licensee shall average at
23least 11 races for each racing date awarded. In awarding
24standardbred racing dates for calendar year 2021 and
25thereafter, the Board shall award at least 260 racing dates,
26and each organization licensee shall average at least 11 races

 

 

10000SB0007ham003- 211 -LRB100 06307 SMS 40923 a

1for each racing date awarded unless a lesser schedule of live
2racing is a result of an agreement with the organization
3representing the largest number of standardbred owners,
4breeders, trainers, drivers, caretakers in the State.
5Standardbred racing conducted in Sangamon County shall not be
6considered races under this subsection (e-1).
7    (e-2) In awarding racing dates for calendar year 2019 and
8thereafter, the Board shall award thoroughbred racing days to
9Cook County organization licensees commensurate with these
10organization licensees' requirement that they shall run at
11least 1,950 thoroughbred races in the aggregate, so long as 2
12organization licensees are conducting gaming operations
13pursuant to an organization license. Additionally, if the
14organization licensees that run thoroughbred races in Cook
15County are conducting gaming operations pursuant to an
16organization license under the Illinois Gambling Act, the Board
17shall increase the number of thoroughbred races to be run in
18Cook County in the aggregate to at least the following:
19        (i) 2,050 races in any year following the most recent
20    preceding complete calendar year when the combined
21    adjusted gross receipts of the organization gaming
22    licensees operating at Cook County racetracks total in
23    excess of $200,000,000, but do not exceed $250,000,000;
24        (ii) 2,125 races in any year following the most recent
25    preceding complete calendar year when the combined
26    adjusted gross receipts of the organization gaming

 

 

10000SB0007ham003- 212 -LRB100 06307 SMS 40923 a

1    licensees operating at Cook County racetracks total in
2    excess of $250,000,000, but do not exceed $300,000,000;
3        (iii) 2,200 races in any year following the most recent
4    preceding complete calendar year when the combined
5    adjusted gross receipts of the organization gaming
6    licensees operating at Cook County racetracks total in
7    excess of $300,000,000, but do not exceed $350,000,000;
8        (iv) 2,300 races in any year following the most recent
9    preceding complete calendar year when the combined
10    adjusted gross receipts of the organization gaming
11    licensees operating at Cook County racetracks total in
12    excess of $350,000,000, but do not exceed $400,000,000;
13        (v) 2,375 races in any year following the most recent
14    preceding complete calendar year when the combined
15    adjusted gross receipts of the organization gaming
16    licensees operating at Cook County racetracks total in
17    excess of $400,000,000, but do not exceed $450,000,000;
18        (vi) 2,450 races in any year following the most recent
19    preceding complete calendar year when the combined
20    adjusted gross receipts of the organization gaming
21    licensees operating at Cook County racetracks total in
22    excess of $450,000,000, but do not exceed $500,000,000;
23        (vii) 2,550 races in any year following the most recent
24    preceding complete calendar year when the combined
25    adjusted gross receipts of the organization gaming
26    licensees operating at Cook County racetracks exceed

 

 

10000SB0007ham003- 213 -LRB100 06307 SMS 40923 a

1    $500,000,000.
2    In awarding racing dates under this subsection (e-2), the
3Board shall have the discretion to allocate those thoroughbred
4racing dates among these Cook County organization licensees.
5    (e-3) In awarding racing dates for calendar year 2019 and
6thereafter in connection with a racetrack in Madison County,
7the Board shall award racing dates and such organization
8licensee shall run at least 700 thoroughbred races at the
9racetrack in Madison County each year.
10    Notwithstanding Section 7.7 of the Illinois Gambling Act or
11any provision of this Act other than subsection (e-4.5), for
12each calendar year for which an organization gaming licensee
13located in Madison County requests racing dates resulting in
14less than 700 live thoroughbred races at its racetrack
15facility, the organization gaming licensee may not conduct
16gaming pursuant to an organization gaming license issued under
17the Illinois Gambling Act for the calendar year of such
18requested live races.
19    (e-4) Notwithstanding the provisions of Section 7.7 of the
20Illinois Gambling Act or any provision of this Act other than
21subsections (e-3) and (e-4.5), for each calendar year for which
22an organization gaming licensee requests thoroughbred racing
23dates which results in a number of live races under its
24organization license that is less than the total number of live
25races which it conducted in 2017 at its racetrack facility, the
26organization gaming licensee may not conduct gaming pursuant to

 

 

10000SB0007ham003- 214 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 215 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 216 -LRB100 06307 SMS 40923 a

1public meeting of the Board.
2    (e-5) In reviewing an application for the purpose of
3granting an organization license consistent with the best
4interests of the public and the sport of horse racing, the
5Board shall consider:
6        (1) the character, reputation, experience, and
7    financial integrity of the applicant and of any other
8    separate person that either:
9            (i) controls the applicant, directly or
10        indirectly, or
11            (ii) is controlled, directly or indirectly, by
12        that applicant or by a person who controls, directly or
13        indirectly, that applicant;
14        (2) the applicant's facilities or proposed facilities
15    for conducting horse racing;
16        (3) the total revenue without regard to Section 32.1 to
17    be derived by the State and horsemen from the applicant's
18    conducting a race meeting;
19        (4) the applicant's good faith affirmative action plan
20    to recruit, train, and upgrade minorities in all employment
21    classifications;
22        (5) the applicant's financial ability to purchase and
23    maintain adequate liability and casualty insurance;
24        (6) the applicant's proposed and prior year's
25    promotional and marketing activities and expenditures of
26    the applicant associated with those activities;

 

 

10000SB0007ham003- 217 -LRB100 06307 SMS 40923 a

1        (7) an agreement, if any, among organization licensees
2    as provided in subsection (b) of Section 21 of this Act;
3    and
4        (8) the extent to which the applicant exceeds or meets
5    other standards for the issuance of an organization license
6    that the Board shall adopt by rule.
7    In granting organization licenses and allocating dates for
8horse race meetings, the Board shall have discretion to
9determine an overall schedule, including required simulcasts
10of Illinois races by host tracks that will, in its judgment, be
11conducive to the best interests of the public and the sport of
12horse racing.
13    (e-10) The Illinois Administrative Procedure Act shall
14apply to administrative procedures of the Board under this Act
15for the granting of an organization license, except that (1)
16notwithstanding the provisions of subsection (b) of Section
1710-40 of the Illinois Administrative Procedure Act regarding
18cross-examination, the Board may prescribe rules limiting the
19right of an applicant or participant in any proceeding to award
20an organization license to conduct cross-examination of
21witnesses at that proceeding where that cross-examination
22would unduly obstruct the timely award of an organization
23license under subsection (e) of Section 20 of this Act; (2) the
24provisions of Section 10-45 of the Illinois Administrative
25Procedure Act regarding proposals for decision are excluded
26under this Act; (3) notwithstanding the provisions of

 

 

10000SB0007ham003- 218 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 219 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 220 -LRB100 06307 SMS 40923 a

1administrative procedures of the Board in conducting the
2emergency hearing and the reallocation of racing dates on an
3emergency basis.
4    (g) (Blank).
5    (h) The Board shall send the applicant a copy of its
6formally executed order by certified mail addressed to the
7applicant at the address stated in his application, which
8notice shall be mailed within 5 days of the date the formal
9order is executed.
10    Each applicant notified shall, within 10 days after receipt
11of the final executed order of the Board awarding racing dates:
12        (1) file with the Board an acceptance of such award in
13    the form prescribed by the Board;
14        (2) pay to the Board an additional amount equal to $110
15    for each racing date awarded; and
16        (3) file with the Board the bonds required in Sections
17    21 and 25 at least 20 days prior to the first day of each
18    race meeting.
19Upon compliance with the provisions of paragraphs (1), (2), and
20(3) of this subsection (h), the applicant shall be issued an
21organization license.
22    If any applicant fails to comply with this Section or fails
23to pay the organization license fees herein provided, no
24organization license shall be issued to such applicant.
25(Source: P.A. 97-333, eff. 8-12-11.)
 

 

 

10000SB0007ham003- 221 -LRB100 06307 SMS 40923 a

1    (230 ILCS 5/21)  (from Ch. 8, par. 37-21)
2    Sec. 21. (a) Applications for organization licenses must be
3filed with the Board at a time and place prescribed by the
4rules and regulations of the Board. The Board shall examine the
5applications within 21 days after the date allowed for filing
6with respect to their conformity with this Act and such rules
7and regulations as may be prescribed by the Board. If any
8application does not comply with this Act or the rules and
9regulations prescribed by the Board, such application may be
10rejected and an organization license refused to the applicant,
11or the Board may, within 21 days of the receipt of such
12application, advise the applicant of the deficiencies of the
13application under the Act or the rules and regulations of the
14Board, and require the submittal of an amended application
15within a reasonable time determined by the Board; and upon
16submittal of the amended application by the applicant, the
17Board may consider the application consistent with the process
18described in subsection (e-5) of Section 20 of this Act. If it
19is found to be in compliance with this Act and the rules and
20regulations of the Board, the Board may then issue an
21organization license to such applicant.
22    (b) The Board may exercise discretion in granting racing
23dates to qualified applicants different from those requested by
24the applicants in their applications. However, if all eligible
25applicants for organization licenses whose tracks are located
26within 100 miles of each other execute and submit to the Board

 

 

10000SB0007ham003- 222 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 223 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 224 -LRB100 06307 SMS 40923 a

1(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
 
2    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
3    Sec. 24. (a) No license shall be issued to or held by an
4organization licensee unless all of its officers, directors,
5and holders of ownership interests of at least 5% are first
6approved by the Board. The Board shall not give approval of an
7organization license application to any person who has been
8convicted of or is under an indictment for a crime of moral
9turpitude or has violated any provision of the racing law of
10this State or any rules of the Board.
11    (b) An organization licensee must notify the Board within
1210 days of any change in the holders of a direct or indirect
13interest in the ownership of the organization licensee. The
14Board may, after hearing, revoke the organization license of
15any person who registers on its books or knowingly permits a
16direct or indirect interest in the ownership of that person
17without notifying the Board of the name of the holder in
18interest within this period.
19    (c) In addition to the provisions of subsection (a) of this
20Section, no person shall be granted an organization license if
21any public official of the State or member of his or her family
22holds any ownership or financial interest, directly or
23indirectly, in the person.
24    (d) No person which has been granted an organization
25license to hold a race meeting shall give to any public

 

 

10000SB0007ham003- 225 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 226 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 227 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 228 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 229 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 230 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 231 -LRB100 06307 SMS 40923 a

1when the out-of-State entity conducts a pari-mutuel pool
2separate from the organization licensee, a privilege tax equal
3to 7 1/2% of all monies received by the organization licensee
4from entities in other states or countries pursuant to such
5contracts is imposed on the organization licensee, and such
6privilege tax shall be remitted to the Department of Revenue
7within 48 hours of receipt of the moneys from the simulcast.
8When the out-of-State entity conducts a combined pari-mutuel
9pool with the organization licensee, the tax shall be 10% of
10all monies received by the organization licensee with 25% of
11the receipts from this 10% tax to be distributed to the county
12in which the race was conducted.
13    An organization licensee may permit one or more of its
14races to be utilized for pari-mutuel wagering at one or more
15locations in other states and may transmit audio and visual
16signals of races the organization licensee conducts to one or
17more locations outside the State or country and may also permit
18pari-mutuel pools in other states or countries to be combined
19with its gross or net wagering pools or with wagering pools
20established by other states.
21    (g) A host track may accept interstate simulcast wagers on
22horse races conducted in other states or countries and shall
23control the number of signals and types of breeds of racing in
24its simulcast program, subject to the disapproval of the Board.
25The Board may prohibit a simulcast program only if it finds
26that the simulcast program is clearly adverse to the integrity

 

 

10000SB0007ham003- 232 -LRB100 06307 SMS 40923 a

1of racing. The host track simulcast program shall include the
2signal of live racing of all organization licensees. All
3non-host licensees and advance deposit wagering licensees
4shall carry the signal of and accept wagers on live racing of
5all organization licensees. Advance deposit wagering licensees
6shall not be permitted to accept out-of-state wagers on any
7Illinois signal provided pursuant to this Section without the
8approval and consent of the organization licensee providing the
9signal. For one year after August 15, 2014 (the effective date
10of Public Act 98-968), non-host licensees may carry the host
11track simulcast program and shall accept wagers on all races
12included as part of the simulcast program of horse races
13conducted at race tracks located within North America upon
14which wagering is permitted. For a period of one year after
15August 15, 2014 (the effective date of Public Act 98-968), on
16horse races conducted at race tracks located outside of North
17America, non-host licensees may accept wagers on all races
18included as part of the simulcast program upon which wagering
19is permitted. Beginning August 15, 2015 (one year after the
20effective date of Public Act 98-968), non-host licensees may
21carry the host track simulcast program and shall accept wagers
22on all races included as part of the simulcast program upon
23which wagering is permitted. All organization licensees shall
24provide their live signal to all advance deposit wagering
25licensees for a simulcast commission fee not to exceed 6% of
26the advance deposit wagering licensee's Illinois handle on the

 

 

10000SB0007ham003- 233 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 234 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 235 -LRB100 06307 SMS 40923 a

1advance deposit wagering system is being unreasonably
2withheld, the Board shall issue a final order within 30 days
3after initiation of the appeal, and the organization licensee's
4advance deposit wagering system may remain operational during
5that 30-day period. The actions of any organization licensee
6who conducts advance deposit wagering or any person who has a
7contract with an organization licensee to conduct advance
8deposit wagering who conducts advance deposit wagering on or
9after January 1, 2013 and prior to June 7, 2013 (the effective
10date of Public Act 98-18) taken in reliance on the changes made
11to this subsection (g) by Public Act 98-18 are hereby
12validated, provided payment of all applicable pari-mutuel
13taxes are remitted to the Board. All advance deposit wagers
14placed from within Illinois must be placed through a
15Board-approved advance deposit wagering licensee; no other
16entity may accept an advance deposit wager from a person within
17Illinois. All advance deposit wagering is subject to any rules
18adopted by the Board. The Board may adopt rules necessary to
19regulate advance deposit wagering through the use of emergency
20rulemaking in accordance with Section 5-45 of the Illinois
21Administrative Procedure Act. The General Assembly finds that
22the adoption of rules to regulate advance deposit wagering is
23deemed an emergency and necessary for the public interest,
24safety, and welfare. An advance deposit wagering licensee may
25retain all moneys as agreed to by contract with an organization
26licensee. Any moneys retained by the organization licensee from

 

 

10000SB0007ham003- 236 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 237 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 238 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 239 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 240 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 241 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 242 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 243 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 244 -LRB100 06307 SMS 40923 a

1        (7.3) If no live standardbred racing is conducted at a
2    racetrack located in Madison County in calendar year 2000
3    or 2001, an organization licensee who is licensed to
4    conduct horse racing at that racetrack shall, before
5    January 1, 2002, pay all moneys derived from simulcast
6    wagering and inter-track wagering in calendar years 2000
7    and 2001 and paid into the licensee's standardbred purse
8    account as follows:
9            (A) Eighty percent to that licensee's thoroughbred
10        purse account to be used for thoroughbred purses; and
11            (B) Twenty percent to the Illinois Colt Stakes
12        Purse Distribution Fund.
13        Failure to make the payment to the Illinois Colt Stakes
14    Purse Distribution Fund before January 1, 2002 shall result
15    in the immediate revocation of the licensee's organization
16    license, inter-track wagering license, and inter-track
17    wagering location license.
18        Moneys paid into the Illinois Colt Stakes Purse
19    Distribution Fund pursuant to this paragraph (7.3) shall be
20    paid to purses for standardbred races for Illinois
21    conceived and foaled horses conducted at any county
22    fairgrounds. Moneys paid into the Illinois Colt Stakes
23    Purse Distribution Fund pursuant to this paragraph (7.3)
24    shall be used as determined by the Department of
25    Agriculture, with the advice and assistance of the Illinois
26    Standardbred Breeders Fund Advisory Board, shall be in

 

 

10000SB0007ham003- 245 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 246 -LRB100 06307 SMS 40923 a

1    remainder of the amount retained from simulcast wagering
2    otherwise attributable to the host track and to host track
3    purses shall be split daily between the 2 organization
4    licensees and the purses at the tracks of the 2
5    organization licensees, respectively, based on each
6    organization licensee's share of the total live handle for
7    that day, provided that this provision shall not apply to
8    any non-host licensee that derives its license from a track
9    located in a county with a population in excess of 230,000
10    and that borders the Mississippi River.
11        (9) (Blank).
12        (10) (Blank).
13        (11) (Blank).
14        (12) The Board shall have authority to compel all host
15    tracks to receive the simulcast of any or all races
16    conducted at the Springfield or DuQuoin State fairgrounds
17    and include all such races as part of their simulcast
18    programs.
19        (13) Notwithstanding any other provision of this Act,
20    in the event that the total Illinois pari-mutuel handle on
21    Illinois horse races at all wagering facilities in any
22    calendar year is less than 75% of the total Illinois
23    pari-mutuel handle on Illinois horse races at all such
24    wagering facilities for calendar year 1994, then each
25    wagering facility that has an annual total Illinois
26    pari-mutuel handle on Illinois horse races that is less

 

 

10000SB0007ham003- 247 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 248 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 249 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 250 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 251 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 252 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 253 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 254 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 255 -LRB100 06307 SMS 40923 a

1    of racing conducted by each inter-track wagering licensee
2    or inter-track wagering location licensee shall be
3    considered a separate racing day for the purpose of
4    determining the daily handle and computing the privilege
5    tax or pari-mutuel tax on such daily handle as provided in
6    Section 27.
7        (10.1) Except as provided in subsection (g) of Section
8    27 of this Act, inter-track wagering location licensees
9    shall pay 1% of the pari-mutuel handle at each location to
10    the municipality in which such location is situated and 1%
11    of the pari-mutuel handle at each location to the county in
12    which such location is situated. In the event that an
13    inter-track wagering location licensee is situated in an
14    unincorporated area of a county, such licensee shall pay 2%
15    of the pari-mutuel handle from such location to such
16    county.
17        (10.2) Notwithstanding any other provision of this
18    Act, with respect to inter-track wagering at a race track
19    located in a county that has a population of more than
20    230,000 and that is bounded by the Mississippi River ("the
21    first race track"), or at a facility operated by an
22    inter-track wagering licensee or inter-track wagering
23    location licensee that derives its license from the
24    organization licensee that operates the first race track,
25    on races conducted at the first race track or on races
26    conducted at another Illinois race track and

 

 

10000SB0007ham003- 256 -LRB100 06307 SMS 40923 a

1    simultaneously televised to the first race track or to a
2    facility operated by an inter-track wagering licensee or
3    inter-track wagering location licensee that derives its
4    license from the organization licensee that operates the
5    first race track, those moneys shall be allocated as
6    follows:
7            (A) That portion of all moneys wagered on
8        standardbred racing that is required under this Act to
9        be paid to purses shall be paid to purses for
10        standardbred races.
11            (B) That portion of all moneys wagered on
12        thoroughbred racing that is required under this Act to
13        be paid to purses shall be paid to purses for
14        thoroughbred races.
15        (11) (A) After payment of the privilege or pari-mutuel
16    tax, any other applicable taxes, and the costs and expenses
17    in connection with the gathering, transmission, and
18    dissemination of all data necessary to the conduct of
19    inter-track wagering, the remainder of the monies retained
20    under either Section 26 or Section 26.2 of this Act by the
21    inter-track wagering licensee on inter-track wagering
22    shall be allocated with 50% to be split between the 2
23    participating licensees and 50% to purses, except that an
24    inter-track wagering licensee that derives its license
25    from a track located in a county with a population in
26    excess of 230,000 and that borders the Mississippi River

 

 

10000SB0007ham003- 257 -LRB100 06307 SMS 40923 a

1    shall not divide any remaining retention with the Illinois
2    organization licensee that provides the race or races, and
3    an inter-track wagering licensee that accepts wagers on
4    races conducted by an organization licensee that conducts a
5    race meet in a county with a population in excess of
6    230,000 and that borders the Mississippi River shall not
7    divide any remaining retention with that organization
8    licensee.
9        (B) From the sums permitted to be retained pursuant to
10    this Act each inter-track wagering location licensee shall
11    pay (i) the privilege or pari-mutuel tax to the State; (ii)
12    4.75% of the pari-mutuel handle on inter-track wagering at
13    such location on races as purses, except that an
14    inter-track wagering location licensee that derives its
15    license from a track located in a county with a population
16    in excess of 230,000 and that borders the Mississippi River
17    shall retain all purse moneys for its own purse account
18    consistent with distribution set forth in this subsection
19    (h), and inter-track wagering location licensees that
20    accept wagers on races conducted by an organization
21    licensee located in a county with a population in excess of
22    230,000 and that borders the Mississippi River shall
23    distribute all purse moneys to purses at the operating host
24    track; (iii) until January 1, 2000, except as provided in
25    subsection (g) of Section 27 of this Act, 1% of the
26    pari-mutuel handle wagered on inter-track wagering and

 

 

10000SB0007ham003- 258 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 259 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 260 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 261 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 262 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 263 -LRB100 06307 SMS 40923 a

1        official duties. The remaining 50% of this
2        two-sevenths shall be distributed to county fairs for
3        premiums and rehabilitation as set forth in the
4        Agricultural Fair Act;
5            Four-sevenths to park districts or municipalities
6        that do not have a park district of 500,000 population
7        or less for museum purposes (if an inter-track wagering
8        location licensee is located in such a park district)
9        or to conservation districts for museum purposes (if an
10        inter-track wagering location licensee is located in a
11        municipality that is not included within any park
12        district but is included within a conservation
13        district and is the county seat of a county that (i) is
14        contiguous to the state of Indiana and (ii) has a 1990
15        population of 88,257 according to the United States
16        Bureau of the Census, except that if the conservation
17        district does not maintain a museum, the monies shall
18        be allocated equally between the county and the
19        municipality in which the inter-track wagering
20        location licensee is located for general purposes) or
21        to a municipal recreation board for park purposes (if
22        an inter-track wagering location licensee is located
23        in a municipality that is not included within any park
24        district and park maintenance is the function of the
25        municipal recreation board and the municipality has a
26        1990 population of 9,302 according to the United States

 

 

10000SB0007ham003- 264 -LRB100 06307 SMS 40923 a

1        Bureau of the Census); provided that the monies are
2        distributed to each park district or conservation
3        district or municipality that does not have a park
4        district in an amount equal to four-sevenths of the
5        amount collected by each inter-track wagering location
6        licensee within the park district or conservation
7        district or municipality for the Fund. Monies that were
8        paid into the Horse Racing Tax Allocation Fund before
9        August 9, 1991 (the effective date of Public Act
10        87-110) by an inter-track wagering location licensee
11        located in a municipality that is not included within
12        any park district but is included within a conservation
13        district as provided in this paragraph shall, as soon
14        as practicable after August 9, 1991 (the effective date
15        of Public Act 87-110), be allocated and paid to that
16        conservation district as provided in this paragraph.
17        Any park district or municipality not maintaining a
18        museum may deposit the monies in the corporate fund of
19        the park district or municipality where the
20        inter-track wagering location is located, to be used
21        for general purposes; and
22            One-seventh to the Agricultural Premium Fund to be
23        used for distribution to agricultural home economics
24        extension councils in accordance with "An Act in
25        relation to additional support and finances for the
26        Agricultural and Home Economic Extension Councils in

 

 

10000SB0007ham003- 265 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 266 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 267 -LRB100 06307 SMS 40923 a

1        Agricultural and Home Economic Extension Councils in
2        the several counties of this State and making an
3        appropriation therefor", approved July 24, 1967. This
4        subparagraph (C) shall be inoperative and of no force
5        and effect on and after January 1, 2000.
6            (D) Except as provided in paragraph (11) of this
7        subsection (h), with respect to purse allocation from
8        inter-track wagering, the monies so retained shall be
9        divided as follows:
10                (i) If the inter-track wagering licensee,
11            except an inter-track wagering licensee that
12            derives its license from an organization licensee
13            located in a county with a population in excess of
14            230,000 and bounded by the Mississippi River, is
15            not conducting its own race meeting during the same
16            dates, then the entire purse allocation shall be to
17            purses at the track where the races wagered on are
18            being conducted.
19                (ii) If the inter-track wagering licensee,
20            except an inter-track wagering licensee that
21            derives its license from an organization licensee
22            located in a county with a population in excess of
23            230,000 and bounded by the Mississippi River, is
24            also conducting its own race meeting during the
25            same dates, then the purse allocation shall be as
26            follows: 50% to purses at the track where the races

 

 

10000SB0007ham003- 268 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 269 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 270 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 271 -LRB100 06307 SMS 40923 a

1    daily handle as provided in Sections 27 and 27.1. Such
2    agreements shall be approved by the Board before such
3    wagering may be conducted. In determining whether to grant
4    approval, the Board shall give due consideration to the
5    best interests of the public and of horse racing. The
6    provisions of paragraphs (1), (8), (8.1), and (8.2) of
7    subsection (h) of this Section which are not specified in
8    this paragraph (13) shall not apply to licensed race
9    meetings conducted by the Department of Agriculture at the
10    Illinois State Fair in Sangamon County or the DuQuoin State
11    Fair in Perry County, or to any wagering conducted on those
12    race meetings.
13        (14) An inter-track wagering location license
14    authorized by the Board in 2016 that is owned and operated
15    by a race track in Rock Island County shall be transferred
16    to a commonly owned race track in Cook County on August 12,
17    2016 (the effective date of Public Act 99-757). The
18    licensee shall retain its status in relation to purse
19    distribution under paragraph (11) of this subsection (h)
20    following the transfer to the new entity. The pari-mutuel
21    tax credit under Section 32.1 shall not be applied toward
22    any pari-mutuel tax obligation of the inter-track wagering
23    location licensee of the license that is transferred under
24    this paragraph (14).
25    (i) Notwithstanding the other provisions of this Act, the
26conduct of wagering at wagering facilities is authorized on all

 

 

10000SB0007ham003- 272 -LRB100 06307 SMS 40923 a

1days, except as limited by subsection (b) of Section 19 of this
2Act.
3(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
4100-201, eff. 8-18-17.)
 
5    (230 ILCS 5/26.8)
6    Sec. 26.8. Beginning on February 1, 2014 and through
7December 31, 2018, each wagering licensee may impose a
8surcharge of up to 0.5% on winning wagers and winnings from
9wagers. The surcharge shall be deducted from winnings prior to
10payout. All amounts collected from the imposition of this
11surcharge shall be evenly distributed to the organization
12licensee and the purse account of the organization licensee
13with which the licensee is affiliated. The amounts distributed
14under this Section shall be in addition to the amounts paid
15pursuant to paragraph (10) of subsection (h) of Section 26,
16Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
17(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
18    (230 ILCS 5/26.9)
19    Sec. 26.9. Beginning on February 1, 2014 and through
20December 31, 2018, in addition to the surcharge imposed in
21Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
22licensee shall impose a surcharge of 0.2% on winning wagers and
23winnings from wagers. The surcharge shall be deducted from
24winnings prior to payout. All amounts collected from the

 

 

10000SB0007ham003- 273 -LRB100 06307 SMS 40923 a

1surcharges imposed under this Section shall be remitted to the
2Board. From amounts collected under this Section, the Board
3shall deposit an amount not to exceed $100,000 annually into
4the Quarter Horse Purse Fund and all remaining amounts into the
5Horse Racing Fund.
6(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
7    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
8    Sec. 27. (a) In addition to the organization license fee
9provided by this Act, until January 1, 2000, a graduated
10privilege tax is hereby imposed for conducting the pari-mutuel
11system of wagering permitted under this Act. Until January 1,
122000, except as provided in subsection (g) of Section 27 of
13this Act, all of the breakage of each racing day held by any
14licensee in the State shall be paid to the State. Until January
151, 2000, such daily graduated privilege tax shall be paid by
16the licensee from the amount permitted to be retained under
17this Act. Until January 1, 2000, each day's graduated privilege
18tax, breakage, and Horse Racing Tax Allocation funds shall be
19remitted to the Department of Revenue within 48 hours after the
20close of the racing day upon which it is assessed or within
21such other time as the Board prescribes. The privilege tax
22hereby imposed, until January 1, 2000, shall be a flat tax at
23the rate of 2% of the daily pari-mutuel handle except as
24provided in Section 27.1.
25    In addition, every organization licensee, except as

 

 

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1provided in Section 27.1 of this Act, which conducts multiple
2wagering shall pay, until January 1, 2000, as a privilege tax
3on multiple wagers an amount equal to 1.25% of all moneys
4wagered each day on such multiple wagers, plus an additional
5amount equal to 3.5% of the amount wagered each day on any
6other multiple wager which involves a single betting interest
7on 3 or more horses. The licensee shall remit the amount of
8such taxes to the Department of Revenue within 48 hours after
9the close of the racing day on which it is assessed or within
10such other time as the Board prescribes.
11    This subsection (a) shall be inoperative and of no force
12and effect on and after January 1, 2000.
13    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
14at the rate of 1.5% of the daily pari-mutuel handle is imposed
15at all pari-mutuel wagering facilities and on advance deposit
16wagering from a location other than a wagering facility, except
17as otherwise provided for in this subsection (a-5). In addition
18to the pari-mutuel tax imposed on advance deposit wagering
19pursuant to this subsection (a-5), beginning on August 24, 2012
20(the effective date of Public Act 97-1060) and through December
2131, 2018, an additional pari-mutuel tax at the rate of 0.25%
22shall be imposed on advance deposit wagering. Until August 25,
232012, the additional 0.25% pari-mutuel tax imposed on advance
24deposit wagering by Public Act 96-972 shall be deposited into
25the Quarter Horse Purse Fund, which shall be created as a
26non-appropriated trust fund administered by the Board for

 

 

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1grants to thoroughbred organization licensees for payment of
2purses for quarter horse races conducted by the organization
3licensee. Beginning on August 26, 2012, the additional 0.25%
4pari-mutuel tax imposed on advance deposit wagering shall be
5deposited into the Standardbred Purse Fund, which shall be
6created as a non-appropriated trust fund administered by the
7Board, for grants to the standardbred organization licensees
8for payment of purses for standardbred horse races conducted by
9the organization licensee. Thoroughbred organization licensees
10may petition the Board to conduct quarter horse racing and
11receive purse grants from the Quarter Horse Purse Fund. The
12Board shall have complete discretion in distributing the
13Quarter Horse Purse Fund to the petitioning organization
14licensees. Beginning on July 26, 2010 (the effective date of
15Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
16the daily pari-mutuel handle is imposed at a pari-mutuel
17facility whose license is derived from a track located in a
18county that borders the Mississippi River and conducted live
19racing in the previous year. The pari-mutuel tax imposed by
20this subsection (a-5) shall be remitted to the Department of
21Revenue within 48 hours after the close of the racing day upon
22which it is assessed or within such other time as the Board
23prescribes.
24    (a-10) Beginning on the date when an organization licensee
25begins conducting gaming pursuant to an organization gaming
26license, the following pari-mutuel tax is imposed upon an

 

 

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1organization licensee on Illinois races at the licensee's
2racetrack:
3        1.5% of the pari-mutuel handle at or below the average
4    daily pari-mutuel handle for 2011.
5        2% of the pari-mutuel handle above the average daily
6    pari-mutuel handle for 2011 up to 125% of the average daily
7    pari-mutuel handle for 2011.
8        2.5% of the pari-mutuel handle 125% or more above the
9    average daily pari-mutuel handle for 2011 up to 150% of the
10    average daily pari-mutuel handle for 2011.
11        3% of the pari-mutuel handle 150% or more above the
12    average daily pari-mutuel handle for 2011 up to 175% of the
13    average daily pari-mutuel handle for 2011.
14        3.5% of the pari-mutuel handle 175% or more above the
15    average daily pari-mutuel handle for 2011.
16    The pari-mutuel tax imposed by this subsection (a-10) shall
17be remitted to the Board within 48 hours after the close of the
18racing day upon which it is assessed or within such other time
19as the Board prescribes.
20    (b) On or before December 31, 1999, in the event that any
21organization licensee conducts 2 separate programs of races on
22any day, each such program shall be considered a separate
23racing day for purposes of determining the daily handle and
24computing the privilege tax on such daily handle as provided in
25subsection (a) of this Section.
26    (c) Licensees shall at all times keep accurate books and

 

 

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1records of all monies wagered on each day of a race meeting and
2of the taxes paid to the Department of Revenue under the
3provisions of this Section. The Board or its duly authorized
4representative or representatives shall at all reasonable
5times have access to such records for the purpose of examining
6and checking the same and ascertaining whether the proper
7amount of taxes is being paid as provided. The Board shall
8require verified reports and a statement of the total of all
9monies wagered daily at each wagering facility upon which the
10taxes are assessed and may prescribe forms upon which such
11reports and statement shall be made.
12    (d) Before a license is issued or re-issued, the licensee
13shall post a bond in the sum of $500,000 to the State of
14Illinois. The bond shall be used to guarantee that the licensee
15faithfully makes the payments, keeps the books and records and
16makes reports, and conducts games of chance in conformity with
17this Act and the rules adopted by the Board. The bond shall not
18be canceled by a surety on less than 30 days' notice in writing
19to the Board. If a bond is canceled and the licensee fails to
20file a new bond with the Board in the required amount on or
21before the effective date of cancellation, the licensee's
22license shall be revoked. The total and aggregate liability of
23the surety on the bond is limited to the amount specified in
24the bond. Any licensee failing or refusing to pay the amount of
25any tax due under this Section shall be guilty of a business
26offense and upon conviction shall be fined not more than $5,000

 

 

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1in addition to the amount found due as tax under this Section.
2Each day's violation shall constitute a separate offense. All
3fines paid into Court by a licensee hereunder shall be
4transmitted and paid over by the Clerk of the Court to the
5Board.
6    (e) No other license fee, privilege tax, excise tax, or
7racing fee, except as provided in this Act, shall be assessed
8or collected from any such licensee by the State.
9    (f) No other license fee, privilege tax, excise tax or
10racing fee shall be assessed or collected from any such
11licensee by units of local government except as provided in
12paragraph 10.1 of subsection (h) and subsection (f) of Section
1326 of this Act. However, any municipality that has a Board
14licensed horse race meeting at a race track wholly within its
15corporate boundaries or a township that has a Board licensed
16horse race meeting at a race track wholly within the
17unincorporated area of the township may charge a local
18amusement tax not to exceed 10¢ per admission to such horse
19race meeting by the enactment of an ordinance. However, any
20municipality or county that has a Board licensed inter-track
21wagering location facility wholly within its corporate
22boundaries may each impose an admission fee not to exceed $1.00
23per admission to such inter-track wagering location facility,
24so that a total of not more than $2.00 per admission may be
25imposed. Except as provided in subparagraph (g) of Section 27
26of this Act, the inter-track wagering location licensee shall

 

 

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1collect any and all such fees and within 48 hours remit the
2fees to the Board as the Board prescribes, which shall,
3pursuant to rule, cause the fees to be distributed to the
4county or municipality.
5    (g) Notwithstanding any provision in this Act to the
6contrary, if in any calendar year the total taxes and fees from
7wagering on live racing and from inter-track wagering required
8to be collected from licensees and distributed under this Act
9to all State and local governmental authorities exceeds the
10amount of such taxes and fees distributed to each State and
11local governmental authority to which each State and local
12governmental authority was entitled under this Act for calendar
13year 1994, then the first $11 million of that excess amount
14shall be allocated at the earliest possible date for
15distribution as purse money for the succeeding calendar year.
16Upon reaching the 1994 level, and until the excess amount of
17taxes and fees exceeds $11 million, the Board shall direct all
18licensees to cease paying the subject taxes and fees and the
19Board shall direct all licensees to allocate any such excess
20amount for purses as follows:
21        (i) the excess amount shall be initially divided
22    between thoroughbred and standardbred purses based on the
23    thoroughbred's and standardbred's respective percentages
24    of total Illinois live wagering in calendar year 1994;
25        (ii) each thoroughbred and standardbred organization
26    licensee issued an organization licensee in that

 

 

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1    succeeding allocation year shall be allocated an amount
2    equal to the product of its percentage of total Illinois
3    live thoroughbred or standardbred wagering in calendar
4    year 1994 (the total to be determined based on the sum of
5    1994 on-track wagering for all organization licensees
6    issued organization licenses in both the allocation year
7    and the preceding year) multiplied by the total amount
8    allocated for standardbred or thoroughbred purses,
9    provided that the first $1,500,000 of the amount allocated
10    to standardbred purses under item (i) shall be allocated to
11    the Department of Agriculture to be expended with the
12    assistance and advice of the Illinois Standardbred
13    Breeders Funds Advisory Board for the purposes listed in
14    subsection (g) of Section 31 of this Act, before the amount
15    allocated to standardbred purses under item (i) is
16    allocated to standardbred organization licensees in the
17    succeeding allocation year.
18    To the extent the excess amount of taxes and fees to be
19collected and distributed to State and local governmental
20authorities exceeds $11 million, that excess amount shall be
21collected and distributed to State and local authorities as
22provided for under this Act.
23(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
24eff. 8-12-16.)
 
25    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)

 

 

10000SB0007ham003- 281 -LRB100 06307 SMS 40923 a

1    Sec. 30. (a) The General Assembly declares that it is the
2policy of this State to encourage the breeding of thoroughbred
3horses in this State and the ownership of such horses by
4residents of this State in order to provide for: sufficient
5numbers of high quality thoroughbred horses to participate in
6thoroughbred racing meetings in this State, and to establish
7and preserve the agricultural and commercial benefits of such
8breeding and racing industries to the State of Illinois. It is
9the intent of the General Assembly to further this policy by
10the provisions of this Act.
11    (b) Each organization licensee conducting a thoroughbred
12racing meeting pursuant to this Act shall provide at least two
13races each day limited to Illinois conceived and foaled horses
14or Illinois foaled horses or both. A minimum of 6 races shall
15be conducted each week limited to Illinois conceived and foaled
16or Illinois foaled horses or both. No horses shall be permitted
17to start in such races unless duly registered under the rules
18of the Department of Agriculture.
19    (c) Conditions of races under subsection (b) shall be
20commensurate with past performance, quality, and class of
21Illinois conceived and foaled and Illinois foaled horses
22available. If, however, sufficient competition cannot be had
23among horses of that class on any day, the races may, with
24consent of the Board, be eliminated for that day and substitute
25races provided.
26    (d) There is hereby created a special fund of the State

 

 

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1Treasury to be known as the Illinois Thoroughbred Breeders
2Fund.
3    Beginning on the effective date of this amendatory Act of
4the 100th General Assembly, the Illinois Thoroughbred Breeders
5Fund shall become a non-appropriated trust fund held separately
6from State moneys. Expenditures from this Fund shall no longer
7be subject to appropriation.
8    Except as provided in subsection (g) of Section 27 of this
9Act, 8.5% of all the monies received by the State as privilege
10taxes on Thoroughbred racing meetings shall be paid into the
11Illinois Thoroughbred Breeders Fund.
12    Notwithstanding any provision of law to the contrary,
13amounts deposited into the Illinois Thoroughbred Breeders Fund
14from revenues generated by gaming pursuant to an organization
15gaming license issued under the Illinois Gambling Act after the
16effective date of this amendatory Act of the 100th General
17Assembly shall be in addition to tax and fee amounts paid under
18this Section for calendar year 2018 and thereafter.
19    (e) The Illinois Thoroughbred Breeders Fund shall be
20administered by the Department of Agriculture with the advice
21and assistance of the Advisory Board created in subsection (f)
22of this Section.
23    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
24shall consist of the Director of the Department of Agriculture,
25who shall serve as Chairman; a member of the Illinois Racing
26Board, designated by it; 2 representatives of the organization

 

 

10000SB0007ham003- 283 -LRB100 06307 SMS 40923 a

1licensees conducting thoroughbred racing meetings, recommended
2by them; 2 representatives of the Illinois Thoroughbred
3Breeders and Owners Foundation, recommended by it; one
4representative and 2 representatives of the Horsemen's
5Benevolent Protective Association; and one representative from
6the Illinois Thoroughbred Horsemen's Association or any
7successor organization established in Illinois comprised of
8the largest number of owners and trainers, recommended by it,
9with one representative of the Horsemen's Benevolent and
10Protective Association to come from its Illinois Division, and
11one from its Chicago Division. Advisory Board members shall
12serve for 2 years commencing January 1 of each odd numbered
13year. If representatives of the organization licensees
14conducting thoroughbred racing meetings, the Illinois
15Thoroughbred Breeders and Owners Foundation, and the
16Horsemen's Benevolent Protection Association, and the Illinois
17Thoroughbred Horsemen's Association have not been recommended
18by January 1, of each odd numbered year, the Director of the
19Department of Agriculture shall make an appointment for the
20organization failing to so recommend a member of the Advisory
21Board. Advisory Board members shall receive no compensation for
22their services as members but shall be reimbursed for all
23actual and necessary expenses and disbursements incurred in the
24execution of their official duties.
25    (g) No monies shall be expended from the Illinois
26Thoroughbred Breeders Fund except as appropriated by the

 

 

10000SB0007ham003- 284 -LRB100 06307 SMS 40923 a

1General Assembly. Monies expended appropriated from the
2Illinois Thoroughbred Breeders Fund shall be expended by the
3Department of Agriculture, with the advice and assistance of
4the Illinois Thoroughbred Breeders Fund Advisory Board, for the
5following purposes only:
6        (1) To provide purse supplements to owners of horses
7    participating in races limited to Illinois conceived and
8    foaled and Illinois foaled horses. Any such purse
9    supplements shall not be included in and shall be paid in
10    addition to any purses, stakes, or breeders' awards offered
11    by each organization licensee as determined by agreement
12    between such organization licensee and an organization
13    representing the horsemen. No monies from the Illinois
14    Thoroughbred Breeders Fund shall be used to provide purse
15    supplements for claiming races in which the minimum
16    claiming price is less than $7,500.
17        (2) To provide stakes and awards to be paid to the
18    owners of the winning horses in certain races limited to
19    Illinois conceived and foaled and Illinois foaled horses
20    designated as stakes races.
21        (2.5) To provide an award to the owner or owners of an
22    Illinois conceived and foaled or Illinois foaled horse that
23    wins a maiden special weight, an allowance, overnight
24    handicap race, or claiming race with claiming price of
25    $10,000 or more providing the race is not restricted to
26    Illinois conceived and foaled or Illinois foaled horses.

 

 

10000SB0007ham003- 285 -LRB100 06307 SMS 40923 a

1    Awards shall also be provided to the owner or owners of
2    Illinois conceived and foaled and Illinois foaled horses
3    that place second or third in those races. To the extent
4    that additional moneys are required to pay the minimum
5    additional awards of 40% of the purse the horse earns for
6    placing first, second or third in those races for Illinois
7    foaled horses and of 60% of the purse the horse earns for
8    placing first, second or third in those races for Illinois
9    conceived and foaled horses, those moneys shall be provided
10    from the purse account at the track where earned.
11        (3) To provide stallion awards to the owner or owners
12    of any stallion that is duly registered with the Illinois
13    Thoroughbred Breeders Fund Program prior to the effective
14    date of this amendatory Act of 1995 whose duly registered
15    Illinois conceived and foaled offspring wins a race
16    conducted at an Illinois thoroughbred racing meeting other
17    than a claiming race, provided that the stallion stood
18    service within Illinois at the time the offspring was
19    conceived and that the stallion did not stand for service
20    outside of Illinois at any time during the year in which
21    the offspring was conceived. Such award shall not be paid
22    to the owner or owners of an Illinois stallion that served
23    outside this State at any time during the calendar year in
24    which such race was conducted.
25        (4) To provide $75,000 annually for purses to be
26    distributed to county fairs that provide for the running of

 

 

10000SB0007ham003- 286 -LRB100 06307 SMS 40923 a

1    races during each county fair exclusively for the
2    thoroughbreds conceived and foaled in Illinois. The
3    conditions of the races shall be developed by the county
4    fair association and reviewed by the Department with the
5    advice and assistance of the Illinois Thoroughbred
6    Breeders Fund Advisory Board. There shall be no wagering of
7    any kind on the running of Illinois conceived and foaled
8    races at county fairs.
9        (4.1) To provide purse money for an Illinois stallion
10    stakes program.
11        (5) No less than 90% 80% of all monies appropriated
12    from the Illinois Thoroughbred Breeders Fund shall be
13    expended for the purposes in (1), (2), (2.5), (3), (4),
14    (4.1), and (5) as shown above.
15        (6) To provide for educational programs regarding the
16    thoroughbred breeding industry.
17        (7) To provide for research programs concerning the
18    health, development and care of the thoroughbred horse.
19        (8) To provide for a scholarship and training program
20    for students of equine veterinary medicine.
21        (9) To provide for dissemination of public information
22    designed to promote the breeding of thoroughbred horses in
23    Illinois.
24        (10) To provide for all expenses incurred in the
25    administration of the Illinois Thoroughbred Breeders Fund.
26    (h) The Illinois Thoroughbred Breeders Fund is not subject

 

 

10000SB0007ham003- 287 -LRB100 06307 SMS 40923 a

1to administrative charges or chargebacks, including, but not
2limited to, those authorized under Section 8h of the State
3Finance Act. Whenever the Governor finds that the amount in the
4Illinois Thoroughbred Breeders Fund is more than the total of
5the outstanding appropriations from such fund, the Governor
6shall notify the State Comptroller and the State Treasurer of
7such fact. The Comptroller and the State Treasurer, upon
8receipt of such notification, shall transfer such excess amount
9from the Illinois Thoroughbred Breeders Fund to the General
10Revenue Fund.
11    (i) A sum equal to 13% of the first prize money of every
12purse won by an Illinois foaled or Illinois conceived and
13foaled horse in races not limited to Illinois foaled horses or
14Illinois conceived and foaled horses, or both, shall be paid by
15the organization licensee conducting the horse race meeting.
16Such sum shall be paid 50% from the organization licensee's
17share of the money wagered and 50% from the purse account as
18follows: 11 1/2% to the breeder of the winning horse and 1 1/2%
19to the organization representing thoroughbred breeders and
20owners who representative serves on the Illinois Thoroughbred
21Breeders Fund Advisory Board for verifying the amounts of
22breeders' awards earned, ensuring their distribution in
23accordance with this Act, and servicing and promoting the
24Illinois thoroughbred horse racing industry. Beginning in the
25calendar year in which an organization licensee that is
26eligible to receive payments under paragraph (13) of subsection

 

 

10000SB0007ham003- 288 -LRB100 06307 SMS 40923 a

1(g) of Section 26 of this Act begins to receive funds from
2gaming pursuant to an organization gaming license issued under
3the Illinois Gambling Act, a sum equal to 21 1/2% of the first
4prize money of every purse won by an Illinois foaled or an
5Illinois conceived and foaled horse in races not limited to an
6Illinois conceived and foaled horse, or both, shall be paid 30%
7from the organization licensee's account and 70% from the purse
8account as follows: 20% to the breeder of the winning horse and
91 1/2% to the organization representing thoroughbred breeders
10and owners whose representatives serve on the Illinois
11Thoroughbred Breeders Fund Advisory Board for verifying the
12amounts of breeders' awards earned, ensuring their
13distribution in accordance with this Act, and servicing and
14promoting the Illinois Thoroughbred racing industry. A sum
15equal to 12 1/2% of the first prize money of every purse won by
16an Illinois foaled or an Illinois conceived and foaled horse in
17races not limited to Illinois foaled horses or Illinois
18conceived and foaled horses, or both, shall be paid by the
19organization licensee conducting the horse race meeting. Such
20sum shall be paid from the organization licensee's share of the
21money wagered as follows: 11 1/2% to the breeder of the winning
22horse and 1% to the organization representing thoroughbred
23breeders and owners whose representative serves on the Illinois
24Thoroughbred Breeders Fund Advisory Board for verifying the
25amounts of breeders' awards earned, assuring their
26distribution in accordance with this Act, and servicing and

 

 

10000SB0007ham003- 289 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 290 -LRB100 06307 SMS 40923 a

1following manner by the organization licensee conducting the
2horse race meeting, 50% from the organization licensee's share
3of the money wagered and 50% from the purse account as follows:
411 1/2% to the breeders of the horses in each such race which
5are the official first, second, third, and fourth finishers and
61 1/2% to the organization representing thoroughbred breeders
7and owners whose representatives serve on the Illinois
8Thoroughbred Breeders Fund Advisory Board for verifying the
9amounts of breeders' awards earned, ensuring their proper
10distribution in accordance with this Act, and servicing and
11promoting the Illinois horse racing industry. Beginning in the
12calendar year in which an organization licensee that is
13eligible to receive payments under paragraph (13) of subsection
14(g) of Section 26 of this Act begins to receive funds from
15gaming pursuant to an organization gaming license issued under
16the Illinois Gambling Act, a sum of 21 1/2% of every purse in a
17race limited to Illinois foaled horses or Illinois conceived
18and foaled horses, or both, shall be paid by the organization
19licensee conducting the horse race meeting. Such sum shall be
20paid 30% from the organization licensee's account and 70% from
21the purse account as follows: 20% to the breeders of the horses
22in each such race who are official first, second, third and
23fourth finishers and 1 1/2% to the organization representing
24thoroughbred breeders and owners whose representatives serve
25on the Illinois Thoroughbred Breeders Fund Advisory Board for
26verifying the amounts of breeders' awards earned, ensuring

 

 

10000SB0007ham003- 291 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 292 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 293 -LRB100 06307 SMS 40923 a

1Illinois foaled and the Illinois conceived and foaled horses
2which won breeders' awards and the amount of such breeders'
3awards in accordance with the provisions of this Act. Such
4payments shall be delivered by the organization licensee within
530 days of the end of each race meeting.
6    (k) The term "breeder", as used herein, means the owner of
7the mare at the time the foal is dropped. An "Illinois foaled
8horse" is a foal dropped by a mare which enters this State on
9or before December 1, in the year in which the horse is bred,
10provided the mare remains continuously in this State until its
11foal is born. An "Illinois foaled horse" also means a foal born
12of a mare in the same year as the mare enters this State on or
13before March 1, and remains in this State at least 30 days
14after foaling, is bred back during the season of the foaling to
15an Illinois Registered Stallion (unless a veterinarian
16certifies that the mare should not be bred for health reasons),
17and is not bred to a stallion standing in any other state
18during the season of foaling. An "Illinois foaled horse" also
19means a foal born in Illinois of a mare purchased at public
20auction subsequent to the mare entering this State on or before
21March 1 prior to February 1 of the foaling year providing the
22mare is owned solely by one or more Illinois residents or an
23Illinois entity that is entirely owned by one or more Illinois
24residents.
25    (l) The Department of Agriculture shall, by rule, with the
26advice and assistance of the Illinois Thoroughbred Breeders

 

 

10000SB0007ham003- 294 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 295 -LRB100 06307 SMS 40923 a

1    person shall knowingly prepare or cause preparation of an
2    application for registration of such foals containing
3    false information.
4    (m) The Department of Agriculture, with the advice and
5assistance of the Illinois Thoroughbred Breeders Fund Advisory
6Board, shall provide that certain races limited to Illinois
7conceived and foaled and Illinois foaled horses be stakes races
8and determine the total amount of stakes and awards to be paid
9to the owners of the winning horses in such races.
10    In determining the stakes races and the amount of awards
11for such races, the Department of Agriculture shall consider
12factors, including but not limited to, the amount of money
13appropriated for the Illinois Thoroughbred Breeders Fund
14program, organization licensees' contributions, availability
15of stakes caliber horses as demonstrated by past performances,
16whether the race can be coordinated into the proposed racing
17dates within organization licensees' racing dates, opportunity
18for colts and fillies and various age groups to race, public
19wagering on such races, and the previous racing schedule.
20    (n) The Board and the organizational licensee shall notify
21the Department of the conditions and minimum purses for races
22limited to Illinois conceived and foaled and Illinois foaled
23horses conducted for each organizational licensee conducting a
24thoroughbred racing meeting. The Department of Agriculture
25with the advice and assistance of the Illinois Thoroughbred
26Breeders Fund Advisory Board may allocate monies for purse

 

 

10000SB0007ham003- 296 -LRB100 06307 SMS 40923 a

1supplements for such races. In determining whether to allocate
2money and the amount, the Department of Agriculture shall
3consider factors, including but not limited to, the amount of
4money appropriated for the Illinois Thoroughbred Breeders Fund
5program, the number of races that may occur, and the
6organizational licensee's purse structure.
7    (o) (Blank).
8(Source: P.A. 98-692, eff. 7-1-14.)
 
9    (230 ILCS 5/30.5)
10    Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
11    (a) The General Assembly declares that it is the policy of
12this State to encourage the breeding of racing quarter horses
13in this State and the ownership of such horses by residents of
14this State in order to provide for sufficient numbers of high
15quality racing quarter horses in this State and to establish
16and preserve the agricultural and commercial benefits of such
17breeding and racing industries to the State of Illinois. It is
18the intent of the General Assembly to further this policy by
19the provisions of this Act.
20    (b) There is hereby created non-appropriated trust a
21special fund in the State Treasury to be known as the Illinois
22Racing Quarter Horse Breeders Fund, which is held separately
23from State moneys. Except as provided in subsection (g) of
24Section 27 of this Act, 8.5% of all the moneys received by the
25State as pari-mutuel taxes on quarter horse racing shall be

 

 

10000SB0007ham003- 297 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 298 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 299 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 300 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 301 -LRB100 06307 SMS 40923 a

1policy of this State to encourage the breeding of standardbred
2horses in this State and the ownership of such horses by
3residents of this State in order to provide for: sufficient
4numbers of high quality standardbred horses to participate in
5harness racing meetings in this State, and to establish and
6preserve the agricultural and commercial benefits of such
7breeding and racing industries to the State of Illinois. It is
8the intent of the General Assembly to further this policy by
9the provisions of this Section of this Act.
10    (b) Each organization licensee conducting a harness racing
11meeting pursuant to this Act shall provide for at least two
12races each race program limited to Illinois conceived and
13foaled horses. A minimum of 6 races shall be conducted each
14week limited to Illinois conceived and foaled horses. No horses
15shall be permitted to start in such races unless duly
16registered under the rules of the Department of Agriculture.
17    (b-5) Organization licensees, not including the Illinois
18State Fair or the DuQuoin State Fair, shall provide stake races
19and early closer races for Illinois conceived and foaled horses
20so that purses distributed for such races shall be no less than
2117% of total purses distributed for harness racing in that
22calendar year in addition to any stakes payments and starting
23fees contributed by horse owners.
24    (b-10) Each organization licensee conducting a harness
25racing meeting pursuant to this Act shall provide an owner
26award to be paid from the purse account equal to 25% of the

 

 

10000SB0007ham003- 302 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 303 -LRB100 06307 SMS 40923 a

1member of the Illinois Racing Board, designated by it; a
2representative of the largest association of Illinois
3standardbred owners and breeders, recommended by it; a
4representative of a statewide association representing
5agricultural fairs in Illinois, recommended by it, such
6representative to be from a fair at which Illinois conceived
7and foaled racing is conducted; a representative of the
8organization licensees conducting harness racing meetings,
9recommended by them; a representative of the Breeder's
10Committee of the association representing the largest number of
11standardbred owners, breeders, trainers, caretakers, and
12drivers, recommended by it; and a representative of the
13association representing the largest number of standardbred
14owners, breeders, trainers, caretakers, and drivers,
15recommended by it. Advisory Board members shall serve for 2
16years commencing January 1 of each odd numbered year. If
17representatives of the largest association of Illinois
18standardbred owners and breeders, a statewide association of
19agricultural fairs in Illinois, the association representing
20the largest number of standardbred owners, breeders, trainers,
21caretakers, and drivers, a member of the Breeder's Committee of
22the association representing the largest number of
23standardbred owners, breeders, trainers, caretakers, and
24drivers, and the organization licensees conducting harness
25racing meetings have not been recommended by January 1 of each
26odd numbered year, the Director of the Department of

 

 

10000SB0007ham003- 304 -LRB100 06307 SMS 40923 a

1Agriculture shall make an appointment for the organization
2failing to so recommend a member of the Advisory Board.
3Advisory Board members shall receive no compensation for their
4services as members but shall be reimbursed for all actual and
5necessary expenses and disbursements incurred in the execution
6of their official duties.
7    (g) No monies shall be expended from the Illinois
8Standardbred Breeders Fund except as appropriated by the
9General Assembly. Monies appropriated from the Illinois
10Standardbred Breeders Fund shall be expended by the Department
11of Agriculture, with the assistance and advice of the Illinois
12Standardbred Breeders Fund Advisory Board for the following
13purposes only:
14        1. To provide purses for races limited to Illinois
15    conceived and foaled horses at the State Fair and the
16    DuQuoin State Fair.
17        2. To provide purses for races limited to Illinois
18    conceived and foaled horses at county fairs.
19        3. To provide purse supplements for races limited to
20    Illinois conceived and foaled horses conducted by
21    associations conducting harness racing meetings.
22        4. No less than 75% of all monies in the Illinois
23    Standardbred Breeders Fund shall be expended for purses in
24    1, 2 and 3 as shown above.
25        5. In the discretion of the Department of Agriculture
26    to provide awards to harness breeders of Illinois conceived

 

 

10000SB0007ham003- 305 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 306 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 307 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 308 -LRB100 06307 SMS 40923 a

1    requirements are met. The stallion must be qualified for
2    Illinois Standardbred Breeders Fund breeding at the time of
3    conception and the mare must be inseminated within the
4    State of Illinois. The foal must be dropped in Illinois and
5    properly registered with the Department of Agriculture in
6    accordance with this Act.
7        3. Provide that at least a 5 day racing program shall
8    be conducted at the State Fair each year, which program
9    shall include at least the following races limited to
10    Illinois conceived and foaled horses: (a) a two year old
11    Trot and Pace, and Filly Division of each; (b) a three year
12    old Trot and Pace, and Filly Division of each; (c) an aged
13    Trot and Pace, and Mare Division of each.
14        4. Provide for the payment of nominating, sustaining
15    and starting fees for races promoting the sport of harness
16    racing and for the races to be conducted at the State Fair
17    as provided in subsection (j) 3 of this Section provided
18    that the nominating, sustaining and starting payment
19    required from an entrant shall not exceed 2% of the purse
20    of such race. All nominating, sustaining and starting
21    payments shall be held for the benefit of entrants and
22    shall be paid out as part of the respective purses for such
23    races. Nominating, sustaining and starting fees shall be
24    held in trust accounts for the purposes as set forth in
25    this Act and in accordance with Section 205-15 of the
26    Department of Agriculture Law (20 ILCS 205/205-15).

 

 

10000SB0007ham003- 309 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 310 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 311 -LRB100 06307 SMS 40923 a

1pari-mutuel tax credit in an amount equal to the greater of (i)
250% of the amount of the real estate taxes paid in the prior
3year attributable to that racetrack, or (ii) the amount by
4which the real estate taxes paid in the prior year attributable
5to that racetrack exceeds 60% of the average real estate taxes
6paid in the prior year for all racetracks awarded live horse
7racing meets in the current year.
8    Each year, regardless of whether the organization licensee
9conducted live racing in the year of certification, the Board
10shall certify in writing, prior to December 31, the real estate
11taxes paid in that year for each racetrack and the amount of
12the pari-mutuel tax credit that each organization licensee,
13inter-track wagering licensee, and inter-track wagering
14location licensee that derives its license from such racetrack
15is entitled in the succeeding calendar year. The real estate
16taxes considered under this Section for any racetrack shall be
17those taxes on the real estate parcels and related facilities
18used to conduct a horse race meeting and inter-track wagering
19at such racetrack under this Act. In no event shall the amount
20of the tax credit under this Section exceed the amount of
21pari-mutuel taxes otherwise calculated under this Act. The
22amount of the tax credit under this Section shall be retained
23by each licensee and shall not be subject to any reallocation
24or further distribution under this Act. The Board may
25promulgate emergency rules to implement this Section.
26    (b) If the organization licensee is operating gaming

 

 

10000SB0007ham003- 312 -LRB100 06307 SMS 40923 a

1pursuant to an organization gaming license issued under the
2Illinois Gambling Act, except the organization licensee
3described in Section 19.5, then, for the 5-year period
4beginning on the January 1 of the calendar year immediately
5following the calendar year during which an organization
6licensee begins conducting gaming operations pursuant to an
7organization gaming license issued under the Illinois Gambling
8Act, the organization licensee shall make capital
9expenditures, in an amount equal to no less than 50% of the tax
10credit under this Section, to the improvement and maintenance
11of the backstretch, including, but not limited to, backstretch
12barns, dormitories, and services for backstretch workers.
13Those capital expenditures must be in addition to, and not in
14lieu of, the capital expenditures made for backstretch
15improvements in calendar year 2015, as reported to the Board in
16the organization licensee's application for racing dates and as
17certified by the Board. The organization licensee is required
18to annually submit the list and amounts of these capital
19expenditures to the Board by January 30th of the year following
20the expenditure.
21    (c) If the organization licensee is conducting gaming in
22accordance with paragraph (b), then, after the 5-year period
23beginning on January 1 of the calendar year immediately
24following the calendar year during which an organization
25licensee begins conducting gaming operations pursuant to an
26organization gaming license issued under the Illinois Gambling

 

 

10000SB0007ham003- 313 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 314 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 315 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 316 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 317 -LRB100 06307 SMS 40923 a

1Thoroughbred Breeders Fund. All monies assessed and collected
2for violations relating to standardbreds shall be paid into the
3Illinois Standardbred Breeders Fund.
4(Source: P.A. 99-933, eff. 1-27-17; 100-201, eff. 8-18-17.)
 
5    (230 ILCS 5/54.75)
6    Sec. 54.75. Horse Racing Equity Trust Fund.
7    (a) There is created a Fund to be known as the Horse Racing
8Equity Trust Fund, which is a non-appropriated trust fund held
9separate and apart from State moneys. The Fund shall consist of
10moneys paid into it by owners licensees under the Illinois
11Riverboat Gambling Act for the purposes described in this
12Section. The Fund shall be administered by the Board. Moneys in
13the Fund shall be distributed as directed and certified by the
14Board in accordance with the provisions of subsection (b).
15    (b) The moneys deposited into the Fund, plus any accrued
16interest on those moneys, shall be distributed within 10 days
17after those moneys are deposited into the Fund as follows:
18        (1) Sixty percent of all moneys distributed under this
19    subsection shall be distributed to organization licensees
20    to be distributed at their race meetings as purses.
21    Fifty-seven percent of the amount distributed under this
22    paragraph (1) shall be distributed for thoroughbred race
23    meetings and 43% shall be distributed for standardbred race
24    meetings. Within each breed, moneys shall be allocated to
25    each organization licensee's purse fund in accordance with

 

 

10000SB0007ham003- 318 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 319 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 320 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 321 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 322 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 323 -LRB100 06307 SMS 40923 a

1distributed to purses per subsection (b) of this Section 56
2shall be paid as follows: 0.33 1/3% to Southern Illinois
3University Department of Animal Sciences for equine research
4and education, an amount equal to 0.33 1/3% of the gaming
5receipts from gaming pursuant to an organization gaming license
6shall be used to operate laundry facilities or a kitchen for
7backstretch workers at that racetrack, and an amount equal to
80.33 1/3% of the gaming receipts from gaming pursuant to an
9organization gaming license shall be paid to R.A.C.E., Inc., a
10501(c)(3) non-profit organization that cares for injured and
11unwanted horses that race at that racetrack.
12    Annually, from the purse account of organization licensees
13conducting thoroughbred races at racetracks in Cook County,
14$100,000 shall be paid for division and equal distribution to
15the animal sciences department of each Illinois public
16university system engaged in equine research and education on
17or before the effective date of this amendatory Act of the
18100th General Assembly for equine research and education.
19    (d) Annually, from the purse account of an organization
20licensee racing standardbred horses, an amount equal to 15% of
21the gaming receipts from gaming pursuant to an organization
22gaming license placed into that purse account shall be paid to
23the Illinois Colt Stakes Purse Distribution Fund. Moneys
24deposited into the Illinois Colt Stakes Purse Distribution Fund
25shall be used for standardbred racing as authorized in
26paragraphs 1, 2, 3, 8, 9, 10, and 11 of subsection (g) of

 

 

10000SB0007ham003- 324 -LRB100 06307 SMS 40923 a

1Section 31 of this Act and for bonus awards as authorized under
2paragraph 6 of subsection (j) of Section 31 of this Act.
 
3    Section 90-40. The Riverboat Gambling Act is amended by
4changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
511.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
6and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,
77.12, 7.13, and 25 as follows:
 
8    (230 ILCS 10/1)  (from Ch. 120, par. 2401)
9    Sec. 1. Short title. This Act shall be known and may be
10cited as the Illinois Riverboat Gambling Act.
11(Source: P.A. 86-1029.)
 
12    (230 ILCS 10/2)  (from Ch. 120, par. 2402)
13    Sec. 2. Legislative Intent.
14    (a) This Act is intended to benefit the people of the State
15of Illinois by assisting economic development, and promoting
16Illinois tourism, and by increasing the amount of revenues
17available to the State to assist and support education, and to
18defray State expenses.
19    (b) While authorization of riverboat and casino gambling
20will enhance investment, beautification, development and
21tourism in Illinois, it is recognized that it will do so
22successfully only if public confidence and trust in the
23credibility and integrity of the gambling operations and the

 

 

10000SB0007ham003- 325 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 326 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 327 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 328 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 329 -LRB100 06307 SMS 40923 a

1gambling games authorized under this Act upon a riverboat or in
2a casino or authorized under this Act and the Illinois Horse
3Racing Act of 1975 at an organization gaming facility.
4    (l) "License bid" means the lump sum amount of money that
5an applicant bids and agrees to pay the State in return for an
6owners license that is issued or re-issued on or after July 1,
72003.
8    "Table game" means a live gaming apparatus upon which
9gaming is conducted or that determines an outcome that is the
10object of a wager, including, but not limited to, baccarat,
11twenty-one, blackjack, poker, craps, roulette wheel, klondike
12table, punchboard, faro layout, keno layout, numbers ticket,
13push card, jar ticket, pull tab, or other similar games that
14are authorized by the Board as a wagering device under this
15Act. "Table game" does not include slot machines or video games
16of chance.
17    (m) The terms "minority person", "woman", and "person with
18a disability" shall have the same meaning as defined in Section
192 of the Business Enterprise for Minorities, Women, and Persons
20with Disabilities Act.
21    "Authority" means the Chicago Casino Development
22Authority.
23    "Casino" means a facility at which lawful gambling is
24authorized as provided in this Act.
25    "Owners license" means a license to conduct riverboat or
26casino gambling operations, but does not include an

 

 

10000SB0007ham003- 330 -LRB100 06307 SMS 40923 a

1organization gaming license.
2    "Licensed owner" means a person who holds an owners
3license.
4    "Organization gaming facility" means that portion of an
5organization licensee's racetrack facilities at which gaming
6authorized under Section 7.7 is conducted.
7    "Organization gaming license" means a license issued by the
8Illinois Gaming Board under Section 7.7 of this Act authorizing
9gaming pursuant to that Section at an organization gaming
10facility.
11    "Organization gaming licensee" means an entity that holds
12an organization gaming license.
13    "Organization licensee" means an entity authorized by the
14Illinois Racing Board to conduct pari-mutuel wagering in
15accordance with the Illinois Horse Racing Act of 1975. With
16respect only to gaming pursuant to an organization gaming
17license, "organization licensee" includes the authorization
18for gaming created under subsection (a) of Section 56 of the
19Illinois Horse Racing Act of 1975.
20    "Casino operator license" means the license held by the
21person or entity selected by the Authority to manage and
22operate a riverboat or casino within the geographic area of the
23authorized municipality pursuant to this Act and the Chicago
24Casino Development Authority Act.
25    "Wide area progressive system" means a method of linking
26progressive slot machines or electronic gaming machines across

 

 

10000SB0007ham003- 331 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 332 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 333 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 334 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 335 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 336 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 337 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 338 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 339 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 340 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 341 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 342 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 343 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 344 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 345 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 346 -LRB100 06307 SMS 40923 a

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

 

 

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

 

 

10000SB0007ham003- 348 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 349 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 350 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 351 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 352 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 353 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 354 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 355 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 356 -LRB100 06307 SMS 40923 a

1    Sec. 5.3. Ethical conduct.
2    (a) Officials and employees of the corporate authority of a
3host community must carry out their duties and responsibilities
4in such a manner as to promote and preserve public trust and
5confidence in the integrity and conduct of gaming.
6    (b) Officials and employees of the corporate authority of a
7host community shall not use or attempt to use his or her
8official position to secure or attempt to secure any privilege,
9advantage, favor, or influence for himself or herself or
10others.
11    (c) Officials and employees of the corporate authority of a
12host community may not have a financial interest, directly or
13indirectly, in his or her own name or in the name of any other
14person, partnership, association, trust, corporation, or other
15entity in any contract or subcontract for the performance of
16any work for a riverboat or casino that is located in the host
17community. This prohibition shall extend to the holding or
18acquisition of an interest in any entity identified by Board
19action that, in the Board's judgment, could represent the
20potential for or the appearance of a financial interest. The
21holding or acquisition of an interest in such entities through
22an indirect means, such as through a mutual fund, shall not be
23prohibited, except that the Board may identify specific
24investments or funds that, in its judgment, are so influenced
25by gaming holdings as to represent the potential for or the
26appearance of a conflict of interest.

 

 

10000SB0007ham003- 357 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 358 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 359 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 360 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 361 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 362 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 363 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 364 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 365 -LRB100 06307 SMS 40923 a

1the riverboat or premises: (1) has the authorized capacity
2required in this Act; (2) is accessible to persons with
3disabilities; and (3) is fully registered and licensed in
4accordance with any applicable laws.
5    (g) A person who knowingly makes a false statement on an
6application is guilty of a Class A misdemeanor.
7(Source: P.A. 99-143, eff. 7-27-15.)
 
8    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
9    Sec. 7. Owners licenses.
10    (a) The Board shall issue owners licenses to persons or
11entities , firms or corporations which apply for such licenses
12upon payment to the Board of the non-refundable license fee as
13provided in subsection (e) or (e-5) set by the Board, upon
14payment of a $25,000 license fee for the first year of
15operation and a $5,000 license fee for each succeeding year and
16upon a determination by the Board that the applicant is
17eligible for an owners license pursuant to this Act, the
18Chicago Casino Development Authority Act, and the rules of the
19Board. From the effective date of this amendatory Act of the
2095th General Assembly until (i) 3 years after the effective
21date of this amendatory Act of the 95th General Assembly, (ii)
22the date any organization licensee begins to operate a slot
23machine or video game of chance under the Illinois Horse Racing
24Act of 1975 or this Act, (iii) the date that payments begin
25under subsection (c-5) of Section 13 of the Act, or (iv) the

 

 

10000SB0007ham003- 366 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 367 -LRB100 06307 SMS 40923 a

1    Code of 2012, or substantially similar laws of any other
2    jurisdiction;
3        (3) the person has submitted an application for a
4    license under this Act or the Chicago Casino Development
5    Authority Act which contains false information;
6        (4) the person is a member of the Board;
7        (5) a person defined in (1), (2), (3) or (4) is an
8    officer, director or managerial employee of the entity firm
9    or corporation;
10        (6) the entity firm or corporation employs a person
11    defined in (1), (2), (3) or (4) who participates in the
12    management or operation of gambling operations authorized
13    under this Act or the Chicago Casino Development Authority
14    Act;
15        (7) (blank); or
16        (8) a license of the person or entity , firm or
17    corporation issued under this Act or the Chicago Casino
18    Development Authority Act, or a license to own or operate
19    gambling facilities in any other jurisdiction, has been
20    revoked.
21    The Board is expressly prohibited from making changes to
22the requirement that licensees make payment into the Horse
23Racing Equity Trust Fund without the express authority of the
24Illinois General Assembly and making any other rule to
25implement or interpret this amendatory Act of the 95th General
26Assembly. For the purposes of this paragraph, "rules" is given

 

 

10000SB0007ham003- 368 -LRB100 06307 SMS 40923 a

1the meaning given to that term in Section 1-70 of the Illinois
2Administrative Procedure Act.
3    (a-1) Upon approval of the members of the Chicago Casino
4Development Board, the Chicago Casino Development Authority's
5executive director, and the Chicago casino operator licensee,
6the Board shall issue an owners license to the Chicago Casino
7Development Authority that authorizes the conduct of gambling
8operations in a casino or in an airport located in the City of
9Chicago.
10    (b) In determining whether to grant an owners license to an
11applicant other than the Chicago Casino Development Authority,
12the Board shall consider:
13        (1) the character, reputation, experience and
14    financial integrity of the applicants and of any other or
15    separate person that either:
16            (A) controls, directly or indirectly, such
17        applicant, or
18            (B) is controlled, directly or indirectly, by such
19        applicant or by a person which controls, directly or
20        indirectly, such applicant;
21        (2) the facilities or proposed facilities for the
22    conduct of riverboat gambling;
23        (3) the highest prospective total revenue to be derived
24    by the State from the conduct of riverboat gambling;
25        (4) the extent to which the ownership of the applicant
26    reflects the diversity of the State by including minority

 

 

10000SB0007ham003- 369 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 370 -LRB100 06307 SMS 40923 a

1(e-5) of this Section, the The Board may issue up to 10
2licenses authorizing the holders of such licenses to own
3riverboats. In the application for an owners license, the
4applicant shall state the dock at which the riverboat is based
5and the water on which the riverboat will be located. The Board
6shall issue 5 licenses to become effective not earlier than
7January 1, 1991. Three of such licenses shall authorize
8riverboat gambling on the Mississippi River, or, with approval
9by the municipality in which the riverboat was docked on August
107, 2003 and with Board approval, be authorized to relocate to a
11new location, in a municipality that (1) borders on the
12Mississippi River or is within 5 miles of the city limits of a
13municipality that borders on the Mississippi River and (2), on
14August 7, 2003, had a riverboat conducting riverboat gambling
15operations pursuant to a license issued under this Act; one of
16which shall authorize riverboat gambling from a home dock in
17the city of East St. Louis. One other license shall authorize
18riverboat gambling on the Illinois River in Tazewell County or,
19with Board approval, shall authorize the riverboat to relocate
20to a new location that is no more than 10 miles away from its
21original location, in a municipality that borders on the
22Illinois River or is within 5 miles of the city limits of a
23municipality that borders on the Illinois River south of
24Marshall County. The Board shall issue one additional license
25to become effective not earlier than March 1, 1992, which shall
26authorize riverboat gambling on the Des Plaines River in Will

 

 

10000SB0007ham003- 371 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 372 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 373 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 374 -LRB100 06307 SMS 40923 a

1    At least 7 days before the corporate authority of a
2municipality or county board of the county submits a
3certification to the Board concerning items (i) through (vi) of
4this subsection, it shall hold a public hearing to discuss
5items (i) through (vi), as well as any other details concerning
6the proposed riverboat in the municipality or county. The
7corporate authority or county board must subsequently
8memorialize the details concerning the proposed riverboat in a
9resolution that must be adopted by a majority of the corporate
10authority or county board before any certification is sent to
11the Board. The Board shall not alter, amend, change, or
12otherwise interfere with any agreement between the applicant
13and the corporate authority of the municipality or county board
14of the county regarding the location of any temporary or
15permanent facility.
16    In addition, prior to the Board issuing the owners license
17authorized under paragraph (4) of subsection (e-5), an impact
18study shall be completed to determine what location in the city
19will provide the greater impact to the region, including the
20creation of jobs and the generation of tax revenue.
21    The first preference for an owners license issued under
22this subsection (e-5) shall be given to an applicant who, on
23the effective date of this amendatory Act of the 100th General
24Assembly, does not operate and is not licensed as an owners
25licensee in Illinois, whose main corporate headquarters has
26been located within the county of the proposed permanent

 

 

10000SB0007ham003- 375 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 376 -LRB100 06307 SMS 40923 a

1subject to Board approval. Any installment payments shall
2include an annual market interest rate as determined by the
3Board. All payments by licensees under this subsection (e-15)
4shall be deposited into the Gaming Facilities Fee Revenue Fund.
5    (e-20) In addition to any other revocation powers granted
6to the Board under this Act, the Board may revoke the owners
7license of a licensee, other than the Chicago Casino
8Development Authority, which fails to begin conducting
9gambling within 15 months of receipt of the Board's approval of
10the application if the Board determines that license revocation
11is in the best interests of the State.
12    (f) The first 10 owners licenses issued under this Act
13shall permit the holder to own up to 2 riverboats and equipment
14thereon for a period of 3 years after the effective date of the
15license. Holders of the first 10 owners licenses must pay the
16annual license fee for each of the 3 years during which they
17are authorized to own riverboats.
18    (g) Upon the termination, expiration, or revocation of each
19of the first 10 licenses, which shall be issued for a 3 year
20period, all licenses are renewable annually upon payment of the
21fee and a determination by the Board that the licensee
22continues to meet all of the requirements of this Act and the
23Board's rules. However, for licenses renewed on or after May 1,
241998, including casino operator licenses, renewal shall be for
25a period of 4 years, unless the Board sets a shorter period.
26Notwithstanding any provision in this subsection (g) to the

 

 

10000SB0007ham003- 377 -LRB100 06307 SMS 40923 a

1contrary, any license that is awarded to the Chicago Casino
2Development Authority shall not expire, but it shall be subject
3to the provisions of this Act and the rules of the Board.
4    (h) An owners license, except for an owners license issued
5under subsection (e-5) of this Section, shall entitle the
6licensee to own up to 2 riverboats.
7    An owners licensee of a casino or riverboat that is located
8in the City of Chicago pursuant to paragraph (1) of subsection
9(e-5) of this Section shall limit the number of gaming
10positions to 4,000 for such owner. An owners licensee
11authorized under subsection (e) or paragraph (2), (3), (4), or
12(5) of subsection (e-5) of this Section shall limit the number
13of gaming positions to 1,600 for any such owners license,
14except as further provided in subsection (h-10) of this
15Section. An owners licensee authorized under paragraph (6) of
16subsection (e-5) of this Section A licensee shall limit the
17number of gaming positions gambling participants to 1,200 for
18any such owner. The initial fee for each gaming position
19obtained on or after the effective date of this amendatory Act
20of the 100th General Assembly shall be a minimum of $17,500 for
21licensees not located in Cook County and a minimum of $30,000
22for licensees located in Cook County, in addition to the
23reconciliation payment, as set forth in subsections (e-15) or
24(h-5) of this Section owners license. The fees under this
25subsection (h) shall be deposited into the Gaming Facilities
26Fee Revenue Fund.

 

 

10000SB0007ham003- 378 -LRB100 06307 SMS 40923 a

1    Each owners licensee shall reserve its gaming positions
2within 90 days after issuance of its owners license. The Board
3may grant an extension to this 90-day period, provided that the
4owners licensee submits a written request and explanation as to
5why it is unable to reserve its positions within the 90-day
6period.
7    A licensee may operate both of its riverboats concurrently,
8provided that the total number of gaming positions gambling
9participants on both riverboats does not exceed the limit
10established pursuant to this subsection and subsection (h-10)
11of this Section 1,200. Riverboats licensed to operate on the
12Mississippi River and the Illinois River south of Marshall
13County shall have an authorized capacity of at least 500
14persons. Any other riverboat licensed under this Act shall have
15an authorized capacity of at least 400 persons.
16    (h-5) An owners licensee who conducted gambling operations
17prior to January 1, 2012 and purchases positions pursuant to
18subsection (h-10) of this Section on or after the effective
19date of this amendatory Act of the 100th General Assembly must
20pay a minimum initial fee of $17,500 per additional gaming
21position if the licensee is located outside Cook County and a
22minimum initial fee of $30,000 per additional gaming position
23if the licensee is located in Cook County, as stated in
24subsection (h) of this Section. These initial fees shall be
25deposited into the Gaming Facilities Fee Revenue Fund.
26Additionally, that owners licensee shall make a reconciliation

 

 

10000SB0007ham003- 379 -LRB100 06307 SMS 40923 a

1payment 3 years after any additional gaming positions obtained
2pursuant to subsection (h-10) begin operating in an amount
3equal to 75% of the owners licensee's average gross receipts
4for the most lucrative 12-month period of operations minus an
5amount equal to the initial fee that the owners licensee paid
6per additional gaming position. For purposes of this subsection
7(h-5), "average gross receipts" means (i) the increase in
8adjusted gross receipts for the most lucrative 12-month period
9of operations over the adjusted gross receipts for 2017,
10multiplied by (ii) the percentage derived by dividing the
11number of additional gaming positions that an owners licensee
12had obtained pursuant to subsection (h-10) by the total number
13of gaming positions operated by the owners licensee. If this
14calculation results in a negative amount, then the owners
15licensee is not entitled to any reimbursement of fees
16previously paid. This reconciliation payment may be made in
17installments over a period of no more than 2 years, subject to
18Board approval. Any installment payments shall include an
19annual market interest rate as determined by the Board. These
20reconciliation payments shall be deposited into the Gaming
21Facilities Fee Revenue Fund.
22    (h-10) For owners licensees authorized under paragraphs
23(2) through (5) of subsection (e-5) of this Section, the
24application for such new owners licenses shall ask the
25applicants to stipulate in their applications the number of
26gaming positions each applicant would like to reserve, up to

 

 

10000SB0007ham003- 380 -LRB100 06307 SMS 40923 a

11,600 gaming positions. Once the last winning applicant for
2each of these owners licenses has been selected by the Board,
3the Board shall publish the number of gaming positions reserved
4and unreserved by each winning applicant, shall accept requests
5for additional gaming positions from any winning applicants or
6owners licensee who initially reserved 1,600 gaming positions,
7and shall allocate expeditiously the unreserved gaming
8positions to such requesting winning applicants or owners
9licensees in a manner to maximize revenue to the State;
10provided, however, that no owners licensee (other than the
11Chicago Casino Development Authority) shall obtain more than
122,000 positions total.
13    In the event that not all of the unreserved gaming
14positions described in the first and second paragraphs of this
15subsection (h-10) were requested by owners licensees and
16applicants, then until there are no longer unreserved gaming
17positions, the Board periodically shall govern a process to
18allocate the unreserved gaming positions in a manner to
19maximize revenue to the State.
20    Unreserved gaming positions retained from and allocated to
21owners licensees by the Board pursuant to this subsection
22(h-10) shall not be allocated to organization gaming licensees
23pursuant to subsection (e) of Section 7.7 of this Act.
24    (i) A licensed owner is authorized to apply to the Board
25for and, if approved therefor, to receive all licenses from the
26Board necessary for the operation of a riverboat or casino,

 

 

10000SB0007ham003- 381 -LRB100 06307 SMS 40923 a

1including a liquor license, a license to prepare and serve food
2for human consumption, and other necessary licenses. All use,
3occupation and excise taxes which apply to the sale of food and
4beverages in this State and all taxes imposed on the sale or
5use of tangible personal property apply to such sales aboard
6the riverboat or in the casino.
7    (j) The Board may issue or re-issue a license authorizing a
8riverboat to dock in a municipality or approve a relocation
9under Section 11.2 only if, prior to the issuance or
10re-issuance of the license or approval, the governing body of
11the municipality in which the riverboat will dock has by a
12majority vote approved the docking of riverboats in the
13municipality. The Board may issue or re-issue a license
14authorizing a riverboat to dock in areas of a county outside
15any municipality or approve a relocation under Section 11.2
16only if, prior to the issuance or re-issuance of the license or
17approval, the governing body of the county has by a majority
18vote approved of the docking of riverboats within such areas.
19    (k) An owners licensee may conduct land-based gambling
20operations upon approval by the Board.
21    (l) An owners licensee may conduct gaming at a temporary
22facility pending the construction of a permanent facility or
23the remodeling or relocation of an existing facility to
24accommodate gaming participants for up to 24 months after the
25temporary facility begins to conduct gaming. Upon request by an
26owners licensee and upon a showing of good cause by the owners

 

 

10000SB0007ham003- 382 -LRB100 06307 SMS 40923 a

1licensee, the Board shall extend the period during which the
2licensee may conduct gaming at a temporary facility by up to 12
3months. The Board shall make rules concerning the conduct of
4gaming from temporary facilities.
5(Source: P.A. 100-391, eff. 8-25-17.)
 
6    (230 ILCS 10/7.3)
7    Sec. 7.3. State conduct of gambling operations.
8    (a) If, after reviewing each application for a re-issued
9license, the Board determines that the highest prospective
10total revenue to the State would be derived from State conduct
11of the gambling operation in lieu of re-issuing the license,
12the Board shall inform each applicant of its decision. The
13Board shall thereafter have the authority, without obtaining an
14owners license, to conduct casino or riverboat gambling
15operations as previously authorized by the terminated,
16expired, revoked, or nonrenewed license through a licensed
17manager selected pursuant to an open and competitive bidding
18process as set forth in Section 7.5 and as provided in Section
197.4.
20    (b) The Board may locate any casino or riverboat on which a
21gambling operation is conducted by the State in any home dock
22or other location authorized by Section 3(c) upon receipt of
23approval from a majority vote of the governing body of the
24municipality or county, as the case may be, in which the
25riverboat will dock.

 

 

10000SB0007ham003- 383 -LRB100 06307 SMS 40923 a

1    (c) The Board shall have jurisdiction over and shall
2supervise all gambling operations conducted by the State
3provided for in this Act and the Chicago Casino Development
4Authority Act and shall have all powers necessary and proper to
5fully and effectively execute the provisions of this Act and
6the Chicago Casino Development Authority Act relating to
7gambling operations conducted by the State.
8    (d) The maximum number of owners licenses authorized under
9Section 7 7(e) shall be reduced by one for each instance in
10which the Board authorizes the State to conduct a casino or
11riverboat gambling operation under subsection (a) in lieu of
12re-issuing a license to an applicant under Section 7.1.
13(Source: P.A. 93-28, eff. 6-20-03.)
 
14    (230 ILCS 10/7.5)
15    Sec. 7.5. Competitive Bidding. When the Board determines
16that (i) it will re-issue an owners license pursuant to an open
17and competitive bidding process, as set forth in Section 7.1,
18(ii) or that it will issue a managers license pursuant to an
19open and competitive bidding process, as set forth in Section
207.4, or (iii) it will issue an owners license pursuant to an
21open and competitive bidding process, as set forth in Section
227.12, the open and competitive bidding process shall adhere to
23the following procedures:
24    (1) The Board shall make applications for owners and
25managers licenses available to the public and allow a

 

 

10000SB0007ham003- 384 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 385 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 386 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 387 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 388 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 389 -LRB100 06307 SMS 40923 a

1amount of gaming positions authorized under this Act within 120
2days after receiving its organization gaming license. If an
3organization gaming licensee is prepared to purchase the gaming
4positions, but is temporarily prohibited from doing so by order
5of a court of competent jurisdiction or the Board, then the
6120-day period is tolled until a resolution is reached.
7    An organization gaming license shall authorize its holder
8to conduct gaming under this Act at its racetracks on the same
9days of the year and hours of the day that owners licenses are
10allowed to operate under approval of the Board.
11    An organization gaming license and any renewal of an
12organization gaming license shall authorize gaming pursuant to
13this Section for a period of 4 years. The fee for the issuance
14or renewal of an organization gaming license shall be $100,000.
15    (d) To be eligible to conduct gaming under this Section, a
16person or entity having operating control of a racetrack must
17(i) obtain an organization gaming license, (ii) hold an
18organization license under the Illinois Horse Racing Act of
191975, (iii) hold an inter-track wagering license, (iv) pay an
20initial fee of $30,000 per gaming position from organization
21gaming licensees where gaming is conducted in Cook County and
22$17,500 for organization gaming licensees where gaming is
23conducted outside of Cook County before beginning to conduct
24gaming plus make the reconciliation payment required under
25subsection (k), (v) conduct live racing in accordance with
26subsections (e-1), (e-2), and (e-3) of Section 20 of the

 

 

10000SB0007ham003- 390 -LRB100 06307 SMS 40923 a

1Illinois Horse Racing Act of 1975 or for a licensee that is
2only authorized 350 gaming positions pursuant to subsection (d)
3of Section 7.7 of this Act, have a fully operational facility
4running at least 96 live races over a period of at least 15
5days per year until such time as the total number of gaming
6positions is increased to 900, (vi) meet the requirements of
7subsection (a) of Section 56 of the Illinois Horse Racing Act
8of 1975, (vii) for organization licensees conducting
9standardbred race meetings, keep backstretch barns and
10dormitories open and operational year-round unless a lesser
11schedule is mutually agreed to by the organization licensee and
12the horsemen's association racing at that organization
13licensee's race meeting, (viii) for organization licensees
14conducting thoroughbred race meetings, the organization
15licensee must maintain accident medical expense liability
16insurance coverage of $1,000,000 for jockeys, and (ix) meet all
17other requirements of this Act that apply to owners licensees.
18    An organization gaming licensee may enter into a joint
19venture with a licensed owner to own, manage, conduct, or
20otherwise operate the organization gaming licensee's
21organization gaming facilities, unless the organization gaming
22licensee has a parent company or other affiliated company that
23is, directly or indirectly, wholly owned by a parent company
24that is also licensed to conduct organization gaming, casino
25gaming, or their equivalent in another state.
26    All payments by licensees under this subsection (c) shall

 

 

10000SB0007ham003- 391 -LRB100 06307 SMS 40923 a

1be deposited into the Gaming Facilities Fee Revenue Fund.
2    (d-5) The Board may not issue an organization gaming
3license to a racetrack located in Madison County until it
4receives an executed copy of a contractual agreement between
5the racetrack in Madison County and an owners licensee
6conducting riverboat gambling from a home dock in the City of
7East St. Louis to operate authorized gaming at the racetrack in
8Madison County to support the continued viability of the City
9of East St. Louis' local portion of gaming taxes generated by
10the owners licensee.
11    (e) A person or entity is ineligible to receive an
12organization gaming license if:
13        (1) the person or entity has been convicted of a felony
14    under the laws of this State, any other state, or the
15    United States, including a conviction under the Racketeer
16    Influenced and Corrupt Organizations Act;
17        (2) the person or entity has been convicted of any
18    violation of Article 28 of the Criminal Code of 2012, or
19    substantially similar laws of any other jurisdiction;
20        (3) the person or entity has submitted an application
21    for a license under this Act that contains false
22    information;
23        (4) the person is a member of the Board;
24        (5) a person defined in (1), (2), (3), or (4) of this
25    subsection (e) is an officer, director, or managerial
26    employee of the entity;

 

 

10000SB0007ham003- 392 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 393 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 394 -LRB100 06307 SMS 40923 a

1working in good faith to make the positions operational. The
2extension may be for a period of 6 months. If, after the period
3of the extension, the organization gaming licensee has not made
4the positions operational, then another public hearing must be
5held by the Board before it may grant another extension.
6    Unreserved gaming positions retained from and allocated to
7organization gaming licensees by the Board pursuant to this
8subsection (g) shall not be allocated to owners licensees
9pursuant to subsection (h-10) of Section 7 of this Act.
10    For the purpose of this subsection (g), the unreserved
11gaming positions for each organization gaming licensee shall be
12the applicable limitation set forth in subsection (f) of this
13Section, less the number of reserved gaming positions by such
14organization gaming licensee, and the total unreserved gaming
15positions shall be the aggregate of the unreserved gaming
16positions for all organization gaming licensees.
17    (g-5) An organization gaming licensee is authorized to
18conduct the following at a racetrack:
19        (1) slot machine gambling;
20        (2) video game of chance gambling;
21        (3) gambling with electronic gambling games as defined
22    in this Act or defined by the Illinois Gaming Board; and
23        (4) table games.
24    (h) Subject to the approval of the Illinois Gaming Board,
25an organization gaming licensee may make modification or
26additions to any existing buildings and structures to comply

 

 

10000SB0007ham003- 395 -LRB100 06307 SMS 40923 a

1with the requirements of this Act. The Illinois Gaming Board
2shall make its decision after consulting with the Illinois
3Racing Board. In no case, however, shall the Illinois Gaming
4Board approve any modification or addition that alters the
5grounds of the organizational licensee such that the act of
6live racing is an ancillary activity to gaming authorized under
7this Section. Gaming authorized under this Section may take
8place in existing structures where inter-track wagering is
9conducted at the racetrack or a facility within 300 yards of
10the racetrack in accordance with the provisions of this Act and
11the Illinois Horse Racing Act of 1975.
12    (i) An organization gaming licensee may conduct gaming at a
13temporary facility pending the construction of a permanent
14facility or the remodeling or relocation of an existing
15facility to accommodate gaming participants for up to 24 months
16after the temporary facility begins to conduct gaming
17authorized under this Section. Upon request by an organization
18gaming licensee and upon a showing of good cause by the
19organization gaming licensee, the Board shall extend the period
20during which the licensee may conduct gaming authorized under
21this Section at a temporary facility by up to 12 months. The
22Board shall make rules concerning the conduct of gaming
23authorized under this Section from temporary facilities.
24    The gaming authorized under this Section may take place in
25existing structures where inter-track wagering is conducted at
26the racetrack or a facility within 300 yards of the racetrack

 

 

10000SB0007ham003- 396 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 397 -LRB100 06307 SMS 40923 a

1than 2 years, subject to Board approval. Any installment
2payments shall include an annual market interest rate as
3determined by the Board.
4    All payments by licensees under this subsection (i) shall
5be deposited into the Gaming Facilities Fee Revenue Fund.
6    (l) As soon as practical after a request is made by the
7Illinois Gaming Board, to minimize duplicate submissions by the
8applicant, the Illinois Racing Board must provide information
9on an applicant for an organization gaming license to the
10Illinois Gaming Board.
 
11    (230 ILCS 10/7.8 new)
12    Sec. 7.8. Home rule. The regulation and licensing of
13organization gaming licensees and gaming conducted pursuant to
14an organization gaming license are exclusive powers and
15functions of the State. A home rule unit may not regulate or
16license such gaming or organization gaming licensees. This
17Section is a denial and limitation of home rule powers and
18functions under subsection (h) of Section 6 of Article VII of
19the Illinois Constitution.
 
20    (230 ILCS 10/7.9 new)
21    Sec. 7.9. Casino operator license.
22    (a) A qualified person may apply to the Board for a casino
23operator license to operate and manage any gambling operation
24conducted by the Authority. The application shall be made on

 

 

10000SB0007ham003- 398 -LRB100 06307 SMS 40923 a

1forms provided by the Board and shall contain such information
2as the Board prescribes, including but not limited to
3information required in Sections 6(a), (b), and (c) and
4information relating to the applicant's proposed price to
5manage the Authority's gambling operations and to provide the
6casino, gambling equipment, and supplies necessary to conduct
7Authority gambling operations. The application shall also
8include a non-refundable application fee of $100,000. This
9application fee shall be deposited into the Gaming Facilities
10Fee Revenue Fund.
11    (b) A person or entity is ineligible to receive a casino
12operator license if:
13        (1) the person has been convicted of a felony under the
14    laws of this State, any other state, or the United States;
15        (2) the person has been convicted of any violation of
16    Article 28 of the Criminal Code of 2012, or substantially
17    similar laws of any other jurisdiction;
18        (3) the person has submitted an application for a
19    license under this Act or the Chicago Casino Development
20    Authority Act which contains false information;
21        (4) the person is a member of the Board or the Chicago
22    Casino Development Board or the person is an official or
23    employee of the Chicago Casino Development Authority or the
24    City of Chicago;
25        (5) a person defined in (1), (2), (3), or (4) is an
26    officer, director, or managerial employee of the entity;

 

 

10000SB0007ham003- 399 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 400 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 401 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 402 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 403 -LRB100 06307 SMS 40923 a

1    (b) Each owners licensee, organization gaming licensee,
2casino operator licensee, and suppliers licensee shall
3establish and maintain a diversity program designed to promote
4equal opportunity for employment. The program shall establish
5hiring goals as the Board and each licensee determines
6appropriate. The Board shall monitor the progress of the gaming
7licensee's progress with respect to the program's goals.
8    (c) No later than May 31 of each year, each licensee shall
9report to the Board (1) the number of respective employees and
10the number of its respective employees who have designated
11themselves as members of a minority group and gender and (2)
12the total goals achieved under subsection (a) of this Section
13as a percentage of the total contracts awarded by the license.
14In addition, all licensees shall submit a report with respect
15to the minority-owned and female-owned businesses program
16created in this Section to the Board.
17    (d) When considering whether to re-issue or renew a license
18to an owners licensee, organization gaming licensee, casino
19operator licensee, or suppliers licensee, the Board shall take
20into account the licensee's success in complying with the
21provisions of this Section. If an owners licensee, organization
22gaming licensee, casino operator licensee, or suppliers
23licensee has not satisfied the goals contained in this Section,
24the Board shall require a written explanation as to why the
25licensee is not in compliance and shall require the licensee to
26file multi-year metrics designed to achieve compliance with the

 

 

10000SB0007ham003- 404 -LRB100 06307 SMS 40923 a

1provisions by the next renewal period, consistent with State
2and federal law.
 
3    (230 ILCS 10/7.11 new)
4    Sec. 7.11. Annual report on diversity.
5    (a) Each licensee that receives a license under Sections 7,
67.1, and 7.7 shall execute and file a report with the Board no
7later than December 31 of each year that shall contain, but not
8be limited to, the following information:
9        (i) a good faith affirmative action plan to recruit,
10    train, and upgrade minority persons, females, and persons
11    with a disability in all employment classifications;
12        (ii) the total dollar amount of contracts that were
13    awarded to businesses owned by minority persons, females,
14    and persons with a disability;
15        (iii) the total number of businesses owned by minority
16    persons, females, and persons with a disability that were
17    utilized by the licensee;
18        (iv) the utilization of businesses owned by minority
19    persons, females, and persons with disabilities during the
20    preceding year; and
21        (v) the outreach efforts used by the licensee to
22    attract investors and businesses consisting of minority
23    persons, females, and persons with a disability.
24    (b) The Board shall forward a copy of each licensee's
25annual reports to the General Assembly no later than February 1

 

 

10000SB0007ham003- 405 -LRB100 06307 SMS 40923 a

1of each year. The reports to the General Assembly shall be
2filed with the Clerk of the House of Representatives and the
3Secretary of the Senate in electronic form only, in the manner
4that the Clerk and the Secretary shall direct.
 
5    (230 ILCS 10/7.12 new)
6    Sec. 7.12. Issuance of new owners licenses.
7    (a) Except for the owners license issued to the Chicago
8Casino Development Authority, owners licenses newly authorized
9pursuant to this amendatory Act of the 100th General Assembly
10may be issued by the Board to a qualified applicant pursuant to
11an open and competitive bidding process, as set forth in
12Section 7.5, and subject to the maximum number of authorized
13licenses set forth in subsection (e-5) of Section 7 of this
14Act.
15    (b) To be a qualified applicant, a person or entity may not
16be ineligible to receive an owners license under subsection (a)
17of Section 7 of this Act and must submit an application for an
18owners license that complies with Section 6 of this Act.
19    (c) In determining whether to grant an owners license to an
20applicant, the Board shall consider all of the factors set
21forth in subsections (b) and (e-10) of Section 7 of this Act,
22as well as the amount of the applicant's license bid. The Board
23may grant the owners license to an applicant that has not
24submitted the highest license bid, but if it does not select
25the highest bidder, the Board shall issue a written decision

 

 

10000SB0007ham003- 406 -LRB100 06307 SMS 40923 a

1explaining why another applicant was selected and identifying
2the factors set forth in subsections (b) and (e-10) of Section
37 of this Act that favored the winning bidder.
 
4    (230 ILCS 10/7.13 new)
5    Sec. 7.13. Environmental standards. All permanent
6casinos, riverboats, and organization gaming facilities shall
7consist of buildings that are certified as meeting the U.S.
8Green Building Council's Leadership in Energy and
9Environmental Design standards. The provisions of this Section
10apply to a holder of an owners license, casino operator
11license, or organization gaming license that (i) begins
12operations on or after January 1, 2018 or (ii) relocates its
13facilities on or after the effective date of this amendatory
14Act of the 100th General Assembly.
 
15    (230 ILCS 10/8)  (from Ch. 120, par. 2408)
16    Sec. 8. Suppliers licenses.
17    (a) The Board may issue a suppliers license to such
18persons, firms or corporations which apply therefor upon the
19payment of a non-refundable application fee set by the Board,
20upon a determination by the Board that the applicant is
21eligible for a suppliers license and upon payment of a $5,000
22annual license fee.
23    (b) The holder of a suppliers license is authorized to sell
24or lease, and to contract to sell or lease, gambling equipment

 

 

10000SB0007ham003- 407 -LRB100 06307 SMS 40923 a

1and supplies to any licensee involved in the ownership or
2management of gambling operations.
3    (c) Gambling supplies and equipment may not be distributed
4unless supplies and equipment conform to standards adopted by
5rules of the Board.
6    (d) A person, firm or corporation is ineligible to receive
7a suppliers license if:
8        (1) the person has been convicted of a felony under the
9    laws of this State, any other state, or the United States;
10        (2) the person has been convicted of any violation of
11    Article 28 of the Criminal Code of 1961 or the Criminal
12    Code of 2012, or substantially similar laws of any other
13    jurisdiction;
14        (3) the person has submitted an application for a
15    license under this Act which contains false information;
16        (4) the person is a member of the Board;
17        (5) the entity firm or corporation is one in which a
18    person defined in (1), (2), (3) or (4), is an officer,
19    director or managerial employee;
20        (6) the firm or corporation employs a person who
21    participates in the management or operation of riverboat
22    gambling authorized under this Act or the Chicago Casino
23    Development Authority Act;
24        (7) the license of the person, firm or corporation
25    issued under this Act or the Chicago Casino Development
26    Authority Act, or a license to own or operate gambling

 

 

10000SB0007ham003- 408 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 409 -LRB100 06307 SMS 40923 a

1own equipment, devices and supplies. Each holder of an owners
2license or an organization gaming license under the Act shall
3file an annual report listing its inventories of gambling
4equipment, devices and supplies.
5    (f) Any person who knowingly makes a false statement on an
6application is guilty of a Class A misdemeanor.
7    (g) Any gambling equipment, devices and supplies provided
8by any licensed supplier may either be repaired on the
9riverboat, in the casino, or at the organization gaming
10facility or removed from the riverboat, casino, or organization
11gaming facility to a an on-shore facility owned by the holder
12of an owners license or organization gaming license for repair.
13(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
1498-756, eff. 7-16-14.)
 
15    (230 ILCS 10/9)  (from Ch. 120, par. 2409)
16    Sec. 9. Occupational licenses.
17    (a) The Board may issue an occupational license to an
18applicant upon the payment of a non-refundable fee set by the
19Board, upon a determination by the Board that the applicant is
20eligible for an occupational license and upon payment of an
21annual license fee in an amount to be established. To be
22eligible for an occupational license, an applicant must:
23        (1) be at least 21 years of age if the applicant will
24    perform any function involved in gaming by patrons. Any
25    applicant seeking an occupational license for a non-gaming

 

 

10000SB0007ham003- 410 -LRB100 06307 SMS 40923 a

1    function shall be at least 18 years of age;
2        (2) not have been convicted of a felony offense, a
3    violation of Article 28 of the Criminal Code of 1961 or the
4    Criminal Code of 2012, or a similar statute of any other
5    jurisdiction;
6        (2.5) not have been convicted of a crime, other than a
7    crime described in item (2) of this subsection (a),
8    involving dishonesty or moral turpitude, except that the
9    Board may, in its discretion, issue an occupational license
10    to a person who has been convicted of a crime described in
11    this item (2.5) more than 10 years prior to his or her
12    application and has not subsequently been convicted of any
13    other crime;
14        (3) have demonstrated a level of skill or knowledge
15    which the Board determines to be necessary in order to
16    operate gambling aboard a riverboat, in a casino, or at an
17    organization gaming facility; and
18        (4) have met standards for the holding of an
19    occupational license as adopted by rules of the Board. Such
20    rules shall provide that any person or entity seeking an
21    occupational license to manage gambling operations under
22    this Act or the Chicago Casino Development Authority Act
23    hereunder shall be subject to background inquiries and
24    further requirements similar to those required of
25    applicants for an owners license. Furthermore, such rules
26    shall provide that each such entity shall be permitted to

 

 

10000SB0007ham003- 411 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 412 -LRB100 06307 SMS 40923 a

1    (e) The Board may suspend, revoke or restrict any
2occupational licensee: (1) for violation of any provision of
3this Act; (2) for violation of any of the rules and regulations
4of the Board; (3) for any cause which, if known to the Board,
5would have disqualified the applicant from receiving such
6license; or (4) for default in the payment of any obligation or
7debt due to the State of Illinois; or (5) for any other just
8cause.
9    (f) A person who knowingly makes a false statement on an
10application is guilty of a Class A misdemeanor.
11    (g) Any license issued pursuant to this Section shall be
12valid for a period of one year from the date of issuance.
13    (h) Nothing in this Act shall be interpreted to prohibit a
14licensed owner or organization gaming licensee from entering
15into an agreement with a public community college or a school
16approved under the Private Business and Vocational Schools Act
17of 2012 for the training of any occupational licensee. Any
18training offered by such a school shall be in accordance with a
19written agreement between the licensed owner or organization
20gaming licensee and the school.
21    (i) Any training provided for occupational licensees may be
22conducted either at the site of the gambling facility on the
23riverboat or at a school with which a licensed owner or
24organization gaming licensee has entered into an agreement
25pursuant to subsection (h).
26(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;

 

 

10000SB0007ham003- 413 -LRB100 06307 SMS 40923 a

197-1150, eff. 1-25-13.)
 
2    (230 ILCS 10/11)  (from Ch. 120, par. 2411)
3    Sec. 11. Conduct of gambling. Gambling may be conducted by
4licensed owners or licensed managers on behalf of the State
5aboard riverboats. Gambling may be conducted by organization
6gaming licensees at organization gaming facilities. Gambling
7may be conducted by a casino operator licensee at a casino.
8Gambling authorized under this Section is , subject to the
9following standards:
10        (1) A licensee may conduct riverboat gambling
11    authorized under this Act regardless of whether it conducts
12    excursion cruises. A licensee may permit the continuous
13    ingress and egress of patrons passengers on a riverboat not
14    used for excursion cruises for the purpose of gambling.
15    Excursion cruises shall not exceed 4 hours for a round
16    trip. However, the Board may grant express approval for an
17    extended cruise on a case-by-case basis.
18        (2) (Blank).
19        (3) Minimum and maximum wagers on games shall be set by
20    the licensee.
21        (4) Agents of the Board and the Department of State
22    Police may board and inspect any riverboat, enter and
23    inspect any portion of a casino, or enter and inspect any
24    portion of an organization gaming facility at any time for
25    the purpose of determining whether this Act or the Chicago

 

 

10000SB0007ham003- 414 -LRB100 06307 SMS 40923 a

1    Casino Development Authority Act is being complied with.
2    Every riverboat, if under way and being hailed by a law
3    enforcement officer or agent of the Board, must stop
4    immediately and lay to.
5        (5) Employees of the Board shall have the right to be
6    present on the riverboat or in the casino or on adjacent
7    facilities under the control of the licensee and at the
8    organization gaming facility under the control of the
9    organization gaming licensee.
10        (6) Gambling equipment and supplies customarily used
11    in conducting riverboat gambling must be purchased or
12    leased only from suppliers licensed for such purpose under
13    this Act. The Board may approve the transfer, sale, or
14    lease of gambling equipment and supplies by a licensed
15    owner from or to an affiliate of the licensed owner as long
16    as the gambling equipment and supplies were initially
17    acquired from a supplier licensed in Illinois.
18        (7) Persons licensed under this Act or the Chicago
19    Casino Development Authority Act shall permit no form of
20    wagering on gambling games except as permitted by this Act.
21        (8) Wagers may be received only from a person present
22    on a licensed riverboat, in a casino, or at an organization
23    gaming facility. No person present on a licensed riverboat,
24    in a casino, or at an organization gaming facility shall
25    place or attempt to place a wager on behalf of another
26    person who is not present on the riverboat, in a casino, or

 

 

10000SB0007ham003- 415 -LRB100 06307 SMS 40923 a

1    at the organization gaming facility.
2        (9) Wagering, including gaming authorized under
3    Section 7.7, shall not be conducted with money or other
4    negotiable currency.
5        (10) A person under age 21 shall not be permitted on an
6    area of a riverboat or casino where gambling is being
7    conducted or at an organization gaming facility where
8    gambling is being conducted, except for a person at least
9    18 years of age who is an employee of the riverboat or
10    casino gambling operation or gaming operation. No employee
11    under age 21 shall perform any function involved in
12    gambling by the patrons. No person under age 21 shall be
13    permitted to make a wager under this Act or the Chicago
14    Casino Development Authority Act, and any winnings that are
15    a result of a wager by a person under age 21, whether or
16    not paid by a licensee, shall be treated as winnings for
17    the privilege tax purposes, confiscated, and forfeited to
18    the State and deposited into the Education Assistance Fund.
19        (11) Gambling excursion cruises are permitted only
20    when the waterway for which the riverboat is licensed is
21    navigable, as determined by the Board in consultation with
22    the U.S. Army Corps of Engineers. This paragraph (11) does
23    not limit the ability of a licensee to conduct gambling
24    authorized under this Act when gambling excursion cruises
25    are not permitted.
26        (12) All tokens, chips or electronic cards used to make

 

 

10000SB0007ham003- 416 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 417 -LRB100 06307 SMS 40923 a

1    otherwise applicable under this Act or the Chicago Casino
2    Development Authority Act. All such fees shall be deposited
3    into the State Gaming Fund. All such fines shall be
4    deposited into the Education Assistance Fund, created by
5    Public Act 86-0018, of the State of Illinois.
6        (14) In addition to the above, gambling must be
7    conducted in accordance with all rules adopted by the
8    Board.
9(Source: P.A. 96-1392, eff. 1-1-11.)
 
10    (230 ILCS 10/11.1)  (from Ch. 120, par. 2411.1)
11    Sec. 11.1. Collection of amounts owing under credit
12agreements. Notwithstanding any applicable statutory provision
13to the contrary, a licensed owner, licensed or manager,
14licensed casino operator, or organization gaming licensee who
15extends credit to a riverboat gambling patron pursuant to
16paragraph (12) of Section 11 Section 11 (a) (12) of this Act is
17expressly authorized to institute a cause of action to collect
18any amounts due and owing under the extension of credit, as
19well as the licensed owner's, licensed or manager's, licensed
20casino operator's, or organization gaming licensee's costs,
21expenses and reasonable attorney's fees incurred in
22collection.
23(Source: P.A. 93-28, eff. 6-20-03.)
 
24    (230 ILCS 10/12)  (from Ch. 120, par. 2412)

 

 

10000SB0007ham003- 418 -LRB100 06307 SMS 40923 a

1    Sec. 12. Admission tax; fees.
2    (a) A tax is hereby imposed upon admissions to riverboat
3and casino gambling facilities riverboats operated by licensed
4owners authorized pursuant to this Act and the Chicago Casino
5Development Authority Act. Until July 1, 2002, the rate is $2
6per person admitted. From July 1, 2002 until July 1, 2003, the
7rate is $3 per person admitted. From July 1, 2003 until August
823, 2005 (the effective date of Public Act 94-673), for a
9licensee that admitted 1,000,000 persons or fewer in the
10previous calendar year, the rate is $3 per person admitted; for
11a licensee that admitted more than 1,000,000 but no more than
122,300,000 persons in the previous calendar year, the rate is $4
13per person admitted; and for a licensee that admitted more than
142,300,000 persons in the previous calendar year, the rate is $5
15per person admitted. Beginning on August 23, 2005 (the
16effective date of Public Act 94-673), for a licensee that
17admitted 1,000,000 persons or fewer in calendar year 2004, the
18rate is $2 per person admitted, and for all other licensees,
19including licensees that were not conducting gambling
20operations in 2004, the rate is $3 per person admitted. This
21admission tax is imposed upon the licensed owner conducting
22gambling.
23        (1) The admission tax shall be paid for each admission,
24    except that a person who exits a riverboat gambling
25    facility and reenters that riverboat gambling facility
26    within the same gaming day shall be subject only to the

 

 

10000SB0007ham003- 419 -LRB100 06307 SMS 40923 a

1    initial admission tax.
2        (2) (Blank).
3        (3) The riverboat licensee may issue tax-free passes to
4    actual and necessary officials and employees of the
5    licensee or other persons actually working on the
6    riverboat.
7        (4) The number and issuance of tax-free passes is
8    subject to the rules of the Board, and a list of all
9    persons to whom the tax-free passes are issued shall be
10    filed with the Board.
11    (a-5) A fee is hereby imposed upon admissions operated by
12licensed managers on behalf of the State pursuant to Section
137.3 at the rates provided in this subsection (a-5). For a
14licensee that admitted 1,000,000 persons or fewer in the
15previous calendar year, the rate is $3 per person admitted; for
16a licensee that admitted more than 1,000,000 but no more than
172,300,000 persons in the previous calendar year, the rate is $4
18per person admitted; and for a licensee that admitted more than
192,300,000 persons in the previous calendar year, the rate is $5
20per person admitted.
21        (1) The admission fee shall be paid for each admission.
22        (2) (Blank).
23        (3) The licensed manager may issue fee-free passes to
24    actual and necessary officials and employees of the manager
25    or other persons actually working on the riverboat.
26        (4) The number and issuance of fee-free passes is

 

 

10000SB0007ham003- 420 -LRB100 06307 SMS 40923 a

1    subject to the rules of the Board, and a list of all
2    persons to whom the fee-free passes are issued shall be
3    filed with the Board.
4    (b) Except as provided in subsection (b-5), from From the
5tax imposed under subsection (a) and the fee imposed under
6subsection (a-5), a municipality shall receive from the State
7$1 for each person embarking on a riverboat docked within the
8municipality or entering a casino located within the
9municipality, and a county shall receive $1 for each person
10entering a casino or embarking on a riverboat docked within the
11county but outside the boundaries of any municipality. The
12municipality's or county's share shall be collected by the
13Board on behalf of the State and remitted quarterly by the
14State, subject to appropriation, to the treasurer of the unit
15of local government for deposit in the general fund.
16    (b-5) From the tax imposed under subsection (a) and the fee
17imposed under subsection (a-5), $1 for each person embarking on
18a riverboat designated in paragraph (4) of subsection (e-5) of
19Section 7 shall be divided as follows: $0.70 to the City of
20Rockford, $0.05 to the City of Loves Park, $0.05 to the Village
21of Machesney Park, and $0.20 to Winnebago County.
22    The municipality's or county's share shall be collected by
23the Board on behalf of the State and remitted monthly by the
24State, subject to appropriation, to the treasurer of the unit
25of local government for deposit in the general fund.
26    (c) The licensed owner shall pay the entire admission tax

 

 

10000SB0007ham003- 421 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 422 -LRB100 06307 SMS 40923 a

1    persons to whom the tax-free passes are issued shall be
2    filed with the Board.
3        (4) The organization gaming licensee shall pay the
4    entire admission tax to the Board.
5    Such payments shall be made daily. Accompanying each
6payment shall be a return on forms provided by the Board, which
7shall include other information regarding admission as the
8Board may require. Failure to submit either the payment or the
9return within the specified time may result in suspension or
10revocation of the organization gaming license.
11    From the tax imposed under this subsection (c-5), a
12municipality other than the Village of Stickney or the City of
13Collinsville in which an organization gaming facility is
14located, or if the organization gaming facility is not located
15within a municipality, then the county in which the
16organization gaming facility is located, except as otherwise
17provided in this Section, shall receive, subject to
18appropriation, $1 for each person who enters the organization
19gaming facility. For each admission to the organization gaming
20facility in excess of 1,500,000 in a year, from the tax imposed
21under this subsection (c-5), the county in which the
22organization gaming facility is located shall receive, subject
23to appropriation, $0.30, which shall be in addition to any
24other moneys paid to the county under this Section.
25    From the tax imposed under this subsection (c-5) on an
26organization gaming facility located in the Village of

 

 

10000SB0007ham003- 423 -LRB100 06307 SMS 40923 a

1Stickney, $1 for each person who enters the organization gaming
2facility shall be distributed as follows, subject to
3appropriation: $0.24 to the Village of Stickney, $0.49 to the
4Town of Cicero, $0.05 to the City of Berwyn, and $0.17 to the
5Stickney Public Health District, and $0.05 to the City of
6Bridgeview.
7    From the tax imposed under this subsection (c-5) on an
8organization gaming facility located in the City of
9Collinsville, $1 for each person who enters the organization
10gaming facility shall be distributed as follows, subject to
11appropriation: $0.45 to the City of Alton, $0.45 to the City of
12East St. Louis, and $0.10 to the City of Collinsville.
13    After payments required under this subsection (c-5) have
14been made, all remaining amounts shall be transferred in equal
15amounts to the State Construction Account Fund, the Pension
16Stabilization Fund, and the Common School Fund.
17    (d) The Board shall administer and collect the admission
18tax imposed by this Section, to the extent practicable, in a
19manner consistent with the provisions of Sections 4, 5, 5a, 5b,
205c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
21Retailers' Occupation Tax Act and Section 3-7 of the Uniform
22Penalty and Interest Act.
23(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
 
24    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
25    Sec. 13. Wagering tax; rate; distribution.

 

 

10000SB0007ham003- 424 -LRB100 06307 SMS 40923 a

1    (a) Until January 1, 1998, a tax is imposed on the adjusted
2gross receipts received from gambling games authorized under
3this Act at the rate of 20%.
4    (a-1) From January 1, 1998 until July 1, 2002, a privilege
5tax is imposed on persons engaged in the business of conducting
6riverboat gambling operations, based on the adjusted gross
7receipts received by a licensed owner from gambling games
8authorized under this Act at the following rates:
9        15% of annual adjusted gross receipts up to and
10    including $25,000,000;
11        20% of annual adjusted gross receipts in excess of
12    $25,000,000 but not exceeding $50,000,000;
13        25% of annual adjusted gross receipts in excess of
14    $50,000,000 but not exceeding $75,000,000;
15        30% of annual adjusted gross receipts in excess of
16    $75,000,000 but not exceeding $100,000,000;
17        35% of annual adjusted gross receipts in excess of
18    $100,000,000.
19    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
20is imposed on persons engaged in the business of conducting
21riverboat gambling operations, other than licensed managers
22conducting riverboat gambling operations on behalf of the
23State, based on the adjusted gross receipts received by a
24licensed owner from gambling games authorized under this Act at
25the following rates:
26        15% of annual adjusted gross receipts up to and

 

 

10000SB0007ham003- 425 -LRB100 06307 SMS 40923 a

1    including $25,000,000;
2        22.5% of annual adjusted gross receipts in excess of
3    $25,000,000 but not exceeding $50,000,000;
4        27.5% of annual adjusted gross receipts in excess of
5    $50,000,000 but not exceeding $75,000,000;
6        32.5% of annual adjusted gross receipts in excess of
7    $75,000,000 but not exceeding $100,000,000;
8        37.5% of annual adjusted gross receipts in excess of
9    $100,000,000 but not exceeding $150,000,000;
10        45% of annual adjusted gross receipts in excess of
11    $150,000,000 but not exceeding $200,000,000;
12        50% of annual adjusted gross receipts in excess of
13    $200,000,000.
14    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
15persons engaged in the business of conducting riverboat
16gambling operations, other than licensed managers conducting
17riverboat gambling operations on behalf of the State, based on
18the adjusted gross receipts received by a licensed owner from
19gambling games authorized under this Act at the following
20rates:
21        15% of annual adjusted gross receipts up to and
22    including $25,000,000;
23        27.5% of annual adjusted gross receipts in excess of
24    $25,000,000 but not exceeding $37,500,000;
25        32.5% of annual adjusted gross receipts in excess of
26    $37,500,000 but not exceeding $50,000,000;

 

 

10000SB0007ham003- 426 -LRB100 06307 SMS 40923 a

1        37.5% of annual adjusted gross receipts in excess of
2    $50,000,000 but not exceeding $75,000,000;
3        45% of annual adjusted gross receipts in excess of
4    $75,000,000 but not exceeding $100,000,000;
5        50% of annual adjusted gross receipts in excess of
6    $100,000,000 but not exceeding $250,000,000;
7        70% of annual adjusted gross receipts in excess of
8    $250,000,000.
9    An amount equal to the amount of wagering taxes collected
10under this subsection (a-3) that are in addition to the amount
11of wagering taxes that would have been collected if the
12wagering tax rates under subsection (a-2) were in effect shall
13be paid into the Common School Fund.
14    The privilege tax imposed under this subsection (a-3) shall
15no longer be imposed beginning on the earlier of (i) July 1,
162005; (ii) the first date after June 20, 2003 that riverboat
17gambling operations are conducted pursuant to a dormant
18license; or (iii) the first day that riverboat gambling
19operations are conducted under the authority of an owners
20license that is in addition to the 10 owners licenses initially
21authorized under this Act. For the purposes of this subsection
22(a-3), the term "dormant license" means an owners license that
23is authorized by this Act under which no riverboat gambling
24operations are being conducted on June 20, 2003.
25    (a-4) Beginning on the first day on which the tax imposed
26under subsection (a-3) is no longer imposed and ending upon the

 

 

10000SB0007ham003- 427 -LRB100 06307 SMS 40923 a

1imposition of the privilege tax under subsection (a-5) of this
2Section, a privilege tax is imposed on persons engaged in the
3business of conducting riverboat gambling operations, other
4than licensed managers conducting riverboat gambling
5operations on behalf of the State, based on the adjusted gross
6receipts received by a licensed owner from gambling games
7authorized under this Act at the following rates:
8        15% of annual adjusted gross receipts up to and
9    including $25,000,000;
10        22.5% of annual adjusted gross receipts in excess of
11    $25,000,000 but not exceeding $50,000,000;
12        27.5% of annual adjusted gross receipts in excess of
13    $50,000,000 but not exceeding $75,000,000;
14        32.5% of annual adjusted gross receipts in excess of
15    $75,000,000 but not exceeding $100,000,000;
16        37.5% of annual adjusted gross receipts in excess of
17    $100,000,000 but not exceeding $150,000,000;
18        45% of annual adjusted gross receipts in excess of
19    $150,000,000 but not exceeding $200,000,000;
20        50% of annual adjusted gross receipts in excess of
21    $200,000,000.
22    For the imposition of the privilege tax in this subsection
23(a-4), amounts paid pursuant to item (1) of subsection (b) of
24Section 56 of the Illinois Horse Racing Act of 1975 shall not
25be included in the determination of adjusted gross receipts.
26    (a-4.5) Beginning on the first day of the calendar month

 

 

10000SB0007ham003- 428 -LRB100 06307 SMS 40923 a

1immediately following 24 months after the effective date of
2this amendatory Act of the 100th General Assembly and ending on
3the date gambling operations commence at a permanent facility
4with respect to the owners license authorized under paragraph
5(1) of subsection (e-5) of Section 7 of this Act, a privilege
6tax is imposed on persons engaged in the business of conducting
7gambling operations, other than licensed managers conducting
8riverboat gambling operations on behalf of the State, based on
9the adjusted gross receipts received by such licensee from the
10gambling games authorized under this Act. The privilege tax
11shall be the average of the privilege tax, in terms of dollar
12amounts, calculated pursuant to subsection (a-4) and
13subsection (a-5).
14    (a-5) Beginning on January 1 following the opening of the
15permanent casino at which gambling operations are conducted
16pursuant to the Chicago Casino Development Authority Act, a
17privilege tax is imposed on persons engaged in the business of
18conducting gambling operations, other than licensed managers
19conducting riverboat gambling operations on behalf of the
20State, based on the adjusted gross receipts received by such
21licensee from the gambling games authorized under this Act and
22the Chicago Casino Development Authority Act. The privilege tax
23for all gambling games other than table games, including, but
24not limited to, slot machines, video game of chance gambling,
25and electronic gambling games shall be at the following rates:
26        10% of annual adjusted gross receipts up to and

 

 

10000SB0007ham003- 429 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 430 -LRB100 06307 SMS 40923 a

1    $50,000,000 but not exceeding $70,000,000;
2        16% of annual adjusted gross receipts in excess of
3    $70,000,000.
4    For the imposition of the privilege tax in this subsection
5(a-5), amounts paid pursuant to item (1) of subsection (b) of
6Section 56 of the Illinois Horse Racing Act of 1975 shall not
7be included in the determination of adjusted gross receipts.
8    (a-6) From the effective date of this amendatory Act of the
9100th General Assembly until June 30, 2022, an owners licensee
10that conducted gambling operations prior to January 1, 2011
11shall receive a dollar-for-dollar credit against the tax
12imposed under this Section for any renovation or construction
13costs paid by the owners licensee, but in no event shall the
14credit exceed $2,000,000.
15    Additionally, from the effective date of this amendatory
16Act of the 100th General Assembly until December 31, 2021, an
17owners licensee that (i) is located within 15 miles of the
18Missouri border, and (ii) has at least 3 riverboats, casinos,
19or their equivalent within a 45-mile radius, may be authorized
20to relocate to a new location with the approval of both the
21unit of local government designated as the home dock and the
22Board, so long as the new location is within the same unit of
23local government and no more than 3 miles away from its
24original location. Such owners licensee shall receive a credit
25against the tax imposed under this Section equal to 8% of the
26total project costs, as approved by the Board, for any

 

 

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1renovation or construction costs paid by the owners licensee
2for the construction of the new facility, provided that the new
3facility is operational by July 1, 2021. In determining whether
4or not to approve a relocation, the Board must consider the
5extent to which the relocation will diminish the gaming
6revenues received by other Illinois gaming facilities.
7    (a-7) Beginning in the initial adjustment year and through
8the final adjustment year, if the total obligation imposed
9pursuant to either subsection (a-5) or (a-6) will result in an
10owners licensee receiving less after-tax adjusted gross
11receipts than it received in calendar year 2017, then the total
12amount of privilege taxes that the owners licensee is required
13to pay for that calendar year shall be reduced to the extent
14necessary so that the after-tax adjusted gross receipts in that
15calendar year equals the after-tax adjusted gross receipts in
16calendar year 2017, but the privilege tax reduction shall not
17exceed the annual adjustment cap. If pursuant to this
18subsection (a-7), the total obligation imposed pursuant to
19either subsection (a-5) or (a-6) shall be reduced, then the
20owners licensee shall not receive a refund from the State at
21the end of the subject calendar year but instead shall be able
22to apply that amount as a credit against any payments it owes
23to the State in the following calendar year to satisfy its
24total obligation under either subsection (a-5) or (a-6). The
25credit for the final adjustment year shall occur in the
26calendar year following the final adjustment year.

 

 

10000SB0007ham003- 432 -LRB100 06307 SMS 40923 a

1    If an owners licensee that conducted gambling operations
2prior to January 1, 2018 expands its riverboat or casino,
3including, but not limited to, with respect to its gaming
4floor, additional non-gaming amenities such as restaurants,
5bars, and hotels and other additional facilities, and incurs
6construction and other costs related to such expansion from the
7effective date of this amendatory Act of the 100th General
8Assembly until the 5th anniversary of the effective date of
9this amendatory Act of the 100th General Assembly, then for
10each $15,000,000 spent for any such construction or other costs
11related to expansion paid by the owners licensee, the final
12adjustment year shall be extended by one year and the annual
13adjustment cap shall increase by 0.2% of adjusted gross
14receipts during each calendar year until and including the
15final adjustment year. No further modifications to the final
16adjustment year or annual adjustment cap shall be made after
17$75,000,000 is incurred in construction or other costs related
18to expansion so that the final adjustment year shall not extend
19beyond the 9th calendar year after the initial adjustment year,
20not including the initial adjustment year, and the annual
21adjustment cap shall not exceed 4% of adjusted gross receipts
22in a particular calendar year. Construction and other costs
23related to expansion shall include all project related costs,
24including, but not limited to, all hard and soft costs,
25financing costs, on or off-site ground, road or utility work,
26cost of gaming equipment and all other personal property,

 

 

10000SB0007ham003- 433 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 434 -LRB100 06307 SMS 40923 a

1    subsection (e-5) of Section 7 of this Act; or
2        (2) 36 months after the effective date of this
3    amendatory Act of the 100th General Assembly, provided the
4    initial adjustment year shall not commence earlier than 24
5    months after the effective date of this amendatory Act of
6    the 100th General Assembly.
7    "Final adjustment year" means the 4th calendar year after
8the initial adjustment year, not including the initial
9adjustment year, and as may be extended further as described in
10this subsection (a-7).
11    "After-tax adjusted gross receipts" means, for calendar
12year 2017, the adjusted gross receipts less privilege taxes
13paid to the State and for subsequent calendar years, the
14adjusted gross receipts less privilege taxes paid to the State,
15then divided by the owners licensee's average number of gaming
16positions operating in that calendar year and then multiplied
17by the owners licensee's average number of gaming positions
18operating in calendar year 2017.
19    "Annual adjustment cap" means 3% of adjusted gross receipts
20in a particular calendar year, and as may be increased further
21as otherwise described in this subsection (a-7).
22    (a-8) Riverboat gambling operations conducted by a
23licensed manager on behalf of the State are not subject to the
24tax imposed under this Section.
25    (a-9) Beginning on January 1, 2019, the calculation of
26gross receipts or adjusted gross receipts, for the purposes of

 

 

10000SB0007ham003- 435 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 436 -LRB100 06307 SMS 40923 a

1the payment of all amounts otherwise due under this Section,
2pay to the Board a reconciliation payment in the amount, if
3any, by which the licensed owner's base amount exceeds the
4amount of net privilege tax paid by the licensed owner to the
5Board in the then current State fiscal year. A licensed owner's
6net privilege tax obligation due for the balance of the State
7fiscal year shall be reduced up to the total of the amount paid
8by the licensed owner in its June 15 reconciliation payment.
9The obligation imposed by this subsection (a-15) is binding on
10any person, firm, corporation, or other entity that acquires an
11ownership interest in any such owners license. The obligation
12imposed under this subsection (a-15) terminates on the earliest
13of: (i) July 1, 2007, (ii) the first day after the effective
14date of this amendatory Act of the 94th General Assembly that
15riverboat gambling operations are conducted pursuant to a
16dormant license, (iii) the first day that riverboat gambling
17operations are conducted under the authority of an owners
18license that is in addition to the 10 owners licenses initially
19authorized under this Act, or (iv) the first day that a
20licensee under the Illinois Horse Racing Act of 1975 conducts
21gaming operations with slot machines or other electronic gaming
22devices. The Board must reduce the obligation imposed under
23this subsection (a-15) by an amount the Board deems reasonable
24for any of the following reasons: (A) an act or acts of God,
25(B) an act of bioterrorism or terrorism or a bioterrorism or
26terrorism threat that was investigated by a law enforcement

 

 

10000SB0007ham003- 437 -LRB100 06307 SMS 40923 a

1agency, or (C) a condition beyond the control of the owners
2licensee that does not result from any act or omission by the
3owners licensee or any of its agents and that poses a hazardous
4threat to the health and safety of patrons. If an owners
5licensee pays an amount in excess of its liability under this
6Section, the Board shall apply the overpayment to future
7payments required under this Section.
8    For purposes of this subsection (a-15):
9    "Act of God" means an incident caused by the operation of
10an extraordinary force that cannot be foreseen, that cannot be
11avoided by the exercise of due care, and for which no person
12can be held liable.
13    "Base amount" means the following:
14        For a riverboat in Alton, $31,000,000.
15        For a riverboat in East Peoria, $43,000,000.
16        For the Empress riverboat in Joliet, $86,000,000.
17        For a riverboat in Metropolis, $45,000,000.
18        For the Harrah's riverboat in Joliet, $114,000,000.
19        For a riverboat in Aurora, $86,000,000.
20        For a riverboat in East St. Louis, $48,500,000.
21        For a riverboat in Elgin, $198,000,000.
22    "Dormant license" has the meaning ascribed to it in
23subsection (a-3).
24    "Net privilege tax" means all privilege taxes paid by a
25licensed owner to the Board under this Section, less all
26payments made from the State Gaming Fund pursuant to subsection

 

 

10000SB0007ham003- 438 -LRB100 06307 SMS 40923 a

1(b) of this Section.
2    The changes made to this subsection (a-15) by Public Act
394-839 are intended to restate and clarify the intent of Public
4Act 94-673 with respect to the amount of the payments required
5to be made under this subsection by an owners licensee to the
6Board.
7    (b) Until January 1, 1998, 25% of the tax revenue deposited
8in the State Gaming Fund under this Section shall be paid,
9subject to appropriation by the General Assembly, to the unit
10of local government which is designated as the home dock of the
11riverboat. Beginning January 1, 1998, from the tax revenue from
12riverboat or casino gambling deposited in the State Gaming Fund
13under this Section, an amount equal to 5% of adjusted gross
14receipts generated by a riverboat or a casino other than a
15riverboat designated in paragraph (3) or (4) of subsection
16(e-5) of Section 7, shall be paid monthly, subject to
17appropriation by the General Assembly, to the unit of local
18government in which the casino is located or that is designated
19as the home dock of the riverboat. From the tax revenue
20deposited in the State Gaming Fund pursuant to riverboat or
21casino gambling operations conducted by a licensed manager on
22behalf of the State, an amount equal to 5% of adjusted gross
23receipts generated pursuant to those riverboat or casino
24gambling operations shall be paid monthly, subject to
25appropriation by the General Assembly, to the unit of local
26government that is designated as the home dock of the riverboat

 

 

10000SB0007ham003- 439 -LRB100 06307 SMS 40923 a

1upon which those riverboat gambling operations are conducted or
2in which the casino is located. From the tax revenue from
3riverboat or casino gambling deposited in the State Gaming Fund
4under this Section, an amount equal to 5% of the adjusted gross
5receipts generated by a riverboat designated in paragraph (3)
6of subsection (e-5) of Section 7 shall be divided and remitted
7monthly, subject to appropriation, as follows: 75% to Waukegan,
810% to Park City, and 15% to North Chicago. From the tax
9revenue from riverboat or casino gambling deposited in the
10State Gaming Fund under this Section, an amount equal to 5% of
11the adjusted gross receipts generated by a riverboat designated
12in paragraph (4) of subsection (e-5) of Section 7 shall be
13remitted monthly, subject to appropriation, as follows: 70% to
14the City of Rockford, 5% to the City of Loves Park, 5% to the
15Village of Machesney, and 20% to Winnebago County. Units of
16local government may refund any portion of the payment that
17they receive pursuant to this subsection (b) to the riverboat
18or casino.
19    (b-5) Beginning on the effective date of this amendatory
20Act of the 100th General Assembly, from the tax revenue
21deposited in the State Gaming Fund under this Section, an
22amount equal to 3% of adjusted gross receipts generated by each
23organization gaming facility located outside Madison County
24shall be paid monthly, subject to appropriation by the General
25Assembly, to a municipality other than the Village of Stickney
26in which each organization gaming facility is located or, if

 

 

10000SB0007ham003- 440 -LRB100 06307 SMS 40923 a

1the organization gaming facility is not located within a
2municipality, to the county in which the organization gaming
3facility is located, except as otherwise provided in this
4Section. From the tax revenue deposited in the State Gaming
5Fund under this Section, an amount equal to 3% of adjusted
6gross receipts generated by an organization gaming facility
7located in the Village of Stickney shall be paid monthly,
8subject to appropriation by the General Assembly, as follows:
925% to the Village of Stickney, 5% to the City of Berwyn, 50%
10to the Town of Cicero, and 20% to the Stickney Public Health
11District.
12    From the tax revenue deposited in the State Gaming Fund
13under this Section, an amount equal to 5% of adjusted gross
14receipts generated by an organization gaming facility located
15in the City of Collinsville shall be paid monthly, subject to
16appropriation by the General Assembly, as follows: 45% to the
17City of Alton, 45% to the City of East St. Louis, and 10% to the
18City of Collinsville.
19    Municipalities and counties may refund any portion of the
20payment that they receive pursuant to this subsection (b-5) to
21the organization gaming facility.
22    (b-6) Beginning on the effective date of this amendatory
23Act of the 100th General Assembly, from the tax revenue
24deposited in the State Gaming Fund under this Section, an
25amount equal to 2% of adjusted gross receipts generated by an
26organization gaming facility located outside Madison County

 

 

10000SB0007ham003- 441 -LRB100 06307 SMS 40923 a

1shall be paid monthly, subject to appropriation by the General
2Assembly, to the county in which the organization gaming
3facility is located for the purposes of its criminal justice
4system or health care system.
5    Counties may refund any portion of the payment that they
6receive pursuant to this subsection (b-6) to the organization
7gaming facility.
8    (c) Appropriations, as approved by the General Assembly,
9may be made from the State Gaming Fund to the Board (i) for the
10administration and enforcement of this Act, the Chicago Casino
11Development Authority Act, and the Video Gaming Act, (ii) for
12distribution to the Department of State Police and to the
13Department of Revenue for the enforcement of this Act, the
14Chicago Casino Development Authority Act, and the Video Gaming
15Act, and (iii) to the Department of Human Services for the
16administration of programs to treat problem gambling. The
17Board's annual appropriations request must separately state
18its funding needs for the regulation of gaming authorized under
19Section 7.7, riverboat gaming, casino gaming within the City of
20Chicago, and video gaming. From the tax revenue deposited in
21the Gaming Facilities Fee Revenue Fund, the first $50,000,000
22shall be paid to the Board, subject to appropriation, for the
23administration and enforcement of the provisions of this
24amendatory Act of the 100th General Assembly.
25    (c-3) Appropriations, as approved by the General Assembly,
26may be made from the tax revenue deposited into the State

 

 

10000SB0007ham003- 442 -LRB100 06307 SMS 40923 a

1Gaming Fund from organization gaming licensees pursuant to this
2Section for the administration and enforcement of this Act.
3    (c-4) After payments required under subsections (b),
4(b-5), (b-6), (c), and (c-3) have been made from the tax
5revenue from organization gaming licensees deposited into the
6State Gaming Fund under this Section, all remaining amounts
7from gaming licensees shall be transferred in equal amounts to
8the State Construction Account Fund, the Pension Stabilization
9Fund, and the Common School Fund.
10    (c-5) Before May 26, 2006 (the effective date of Public Act
1194-804) and beginning on the effective date of this amendatory
12Act of the 95th General Assembly, unless any organization
13licensee under the Illinois Horse Racing Act of 1975 begins to
14operate a slot machine or video game of chance under the
15Illinois Horse Racing Act of 1975 or this Act, after the
16payments required under subsections (b) and (c) have been made,
17an amount equal to 15% of the adjusted gross receipts of (1) an
18owners licensee that relocates pursuant to Section 11.2, (2) an
19owners licensee conducting riverboat gambling operations
20pursuant to an owners license that is initially issued after
21June 25, 1999, or (3) the first riverboat gambling operations
22conducted by a licensed manager on behalf of the State under
23Section 7.3, whichever comes first, shall be paid from the
24State Gaming Fund into the Horse Racing Equity Fund.
25    (c-10) Each year the General Assembly shall appropriate
26from the General Revenue Fund to the Education Assistance Fund

 

 

10000SB0007ham003- 443 -LRB100 06307 SMS 40923 a

1an amount equal to the amount paid into the Horse Racing Equity
2Fund pursuant to subsection (c-5) in the prior calendar year.
3    (c-15) After the payments required under subsections (b),
4(c), and (c-5) have been made, an amount equal to 2% of the
5adjusted gross receipts of (1) an owners licensee that
6relocates pursuant to Section 11.2, (2) an owners licensee
7conducting riverboat gambling operations pursuant to an owners
8license that is initially issued after June 25, 1999, or (3)
9the first riverboat gambling operations conducted by a licensed
10manager on behalf of the State under Section 7.3, whichever
11comes first, shall be paid, subject to appropriation from the
12General Assembly, from the State Gaming Fund to each home rule
13county with a population of over 3,000,000 inhabitants for the
14purpose of enhancing the county's criminal justice system.
15    (c-20) Each year the General Assembly shall appropriate
16from the General Revenue Fund to the Education Assistance Fund
17an amount equal to the amount paid to each home rule county
18with a population of over 3,000,000 inhabitants pursuant to
19subsection (c-15) in the prior calendar year.
20    (c-25) On July 1, 2013 and each July 1 thereafter,
21$1,600,000 shall be transferred from the State Gaming Fund to
22the Chicago State University Education Improvement Fund.
23    (c-30) On July 1, 2013 or as soon as possible thereafter,
24$92,000,000 shall be transferred from the State Gaming Fund to
25the School Infrastructure Fund and $23,000,000 shall be
26transferred from the State Gaming Fund to the Horse Racing

 

 

10000SB0007ham003- 444 -LRB100 06307 SMS 40923 a

1Equity Fund.
2    (c-35) Beginning on July 1, 2013, in addition to any amount
3transferred under subsection (c-30) of this Section,
4$5,530,000 shall be transferred monthly from the State Gaming
5Fund to the School Infrastructure Fund.
6    (d) From time to time, the Board shall transfer the
7remainder of the funds generated by this Act in equal amounts
8to the State Construction Account Fund, the Pension
9Stabilization Fund, and the Common School Fund into the
10Education Assistance Fund, created by Public Act 86-0018, of
11the State of Illinois.
12    (e) Nothing in this Act shall prohibit the unit of local
13government designated as the home dock of the riverboat from
14entering into agreements with other units of local government
15in this State or in other states to share its portion of the
16tax revenue.
17    (f) To the extent practicable, the Board shall administer
18and collect the wagering taxes imposed by this Section in a
19manner consistent with the provisions of Sections 4, 5, 5a, 5b,
205c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
21Retailers' Occupation Tax Act and Section 3-7 of the Uniform
22Penalty and Interest Act.
23(Source: P.A. 98-18, eff. 6-7-13.)
 
24    (230 ILCS 10/14)  (from Ch. 120, par. 2414)
25    Sec. 14. Licensees - Records - Reports - Supervision.

 

 

10000SB0007ham003- 445 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 446 -LRB100 06307 SMS 40923 a

1compliance report on engagement procedures determined by the
2Board. All audits and compliance engagements shall be conducted
3by certified public accountants selected by the Board. Each
4certified public accountant must be registered in the State of
5Illinois under the Illinois Public Accounting Act. The
6compensation for each certified public accountant shall be paid
7directly by the licensed owner, or manager, or organization
8gaming licensee to the certified public accountant.
9(Source: P.A. 96-1392, eff. 1-1-11.)
 
10    (230 ILCS 10/16)  (from Ch. 120, par. 2416)
11    Sec. 16. Annual Report of Board. The Board shall make an
12annual report to the Governor, for the period ending December
1331 of each year. Included in the report shall be an account of
14the Board actions, its financial position and results of
15operation under this Act and the Chicago Casino Development
16Authority Act, the practical results attained under this Act
17and the Chicago Casino Development Authority Act and any
18recommendations for legislation which the Board deems
19advisable.
20(Source: P.A. 86-1029.)
 
21    (230 ILCS 10/17)  (from Ch. 120, par. 2417)
22    Sec. 17. Administrative Procedures. The Illinois
23Administrative Procedure Act shall apply to all administrative
24rules and procedures of the Board under this Act, the Chicago

 

 

10000SB0007ham003- 447 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 448 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 449 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 450 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 451 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 452 -LRB100 06307 SMS 40923 a

1shall be tried in the county of the dock at which the riverboat
2is based. An action to prosecute any crime occurring in a
3casino or organization gaming facility shall be tried in the
4county in which the casino or organization gaming facility is
5located.
6(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 
7    (230 ILCS 10/18.1)
8    Sec. 18.1. Distribution of certain fines. If a fine is
9imposed on an owners owner licensee or an organization gaming
10licensee for knowingly sending marketing or promotional
11materials to any person placed on the self-exclusion list, then
12the Board shall distribute an amount equal to 15% of the fine
13imposed to the unit of local government in which the casino,
14riverboat, or organization gaming facility is located for the
15purpose of awarding grants to non-profit entities that assist
16gambling addicts.
17(Source: P.A. 96-224, eff. 8-11-09.)
 
18    (230 ILCS 10/19)  (from Ch. 120, par. 2419)
19    Sec. 19. Forfeiture of property.
20    (a) Except as provided in subsection (b), any riverboat,
21casino, or organization gaming facility used for the conduct of
22gambling games in violation of this Act shall be considered a
23gambling place in violation of Section 28-3 of the Criminal
24Code of 2012. Every gambling device found on a riverboat, in a

 

 

10000SB0007ham003- 453 -LRB100 06307 SMS 40923 a

1casino, or at an organization gaming facility operating
2gambling games in violation of this Act and every slot machine
3and video game of chance found at an organization gaming
4facility operating gambling games in violation of this Act or
5the Chicago Casino Development Authority Act shall be subject
6to seizure, confiscation and destruction as provided in Section
728-5 of the Criminal Code of 2012.
8    (b) It is not a violation of this Act for a riverboat or
9other watercraft which is licensed for gaming by a contiguous
10state to dock on the shores of this State if the municipality
11having jurisdiction of the shores, or the county in the case of
12unincorporated areas, has granted permission for docking and no
13gaming is conducted on the riverboat or other watercraft while
14it is docked on the shores of this State. No gambling device
15shall be subject to seizure, confiscation or destruction if the
16gambling device is located on a riverboat or other watercraft
17which is licensed for gaming by a contiguous state and which is
18docked on the shores of this State if the municipality having
19jurisdiction of the shores, or the county in the case of
20unincorporated areas, has granted permission for docking and no
21gaming is conducted on the riverboat or other watercraft while
22it is docked on the shores of this State.
23(Source: P.A. 97-1150, eff. 1-25-13.)
 
24    (230 ILCS 10/20)  (from Ch. 120, par. 2420)
25    Sec. 20. Prohibited activities - civil penalties. Any

 

 

10000SB0007ham003- 454 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 455 -LRB100 06307 SMS 40923 a

1Horse Racing Equity Trust Fund under subsection (a) of Section
27, all of the fees and taxes collected pursuant to this Act or
3the Chicago Casino Development Authority Act shall be deposited
4into the State Gaming Fund, a special fund in the State
5Treasury, which is hereby created. The adjusted gross receipts
6of any riverboat gambling operations conducted by a licensed
7manager on behalf of the State remaining after the payment of
8the fees and expenses of the licensed manager shall be
9deposited into the State Gaming Fund. Fines and penalties
10collected pursuant to this Act or the Chicago Casino
11Development Authority Act shall be deposited into the Education
12Assistance Fund, created by Public Act 86-0018, of the State of
13Illinois.
14(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
 
15    (230 ILCS 10/24)
16    Sec. 24. Applicability of this Illinois Riverboat Gambling
17Act. The provisions of the this Illinois Riverboat Gambling
18Act, and all rules promulgated thereunder, shall apply to the
19Chicago Casino Development Authority Act and the Video Gaming
20Act, except where there is a conflict between the 2 Acts. In
21the event of a conflict between this Act and the Chicago Casino
22Development Authority Act, the terms of the Chicago Casino
23Development Authority Act shall prevail. In the event of a
24conflict between this Act and the Video Gaming Act, the terms
25of this Act shall prevail.

 

 

10000SB0007ham003- 456 -LRB100 06307 SMS 40923 a

1(Source: P.A. 96-37, eff. 7-13-09.)
 
2    (230 ILCS 10/25 new)
3    Sec. 25. Wide area progressive systems. The operation of a
4wide area progressive system is permitted in gambling
5operations authorized under this Act subject to the following
6conditions:
7        (1) The method of communication over the wide area
8    progressive system must consist of dedicated on-line
9    communication lines or the equivalent, as determined by the
10    Administrator, or wireless communication, which may be
11    subject to certain restrictions imposed by the
12    Administrator.
13        (2) All communication between each facility location
14    and the central system site must be encrypted.
15        (3) The central system site must be located within the
16    State of Illinois and be equipped with a non-interruptible
17    power supply and the central computer must be capable of
18    on-line data redundancy should hard disk peripherals fail
19    during operation. The office containing the central
20    computer shall be equipped with a surveillance system that
21    has been approved by the Administrator. The wide area
22    progressive system provider shall be required to keep and
23    maintain an entry and exit log for the office containing
24    the central computer. The wide area progressive system
25    provider shall provide access to the office containing the

 

 

10000SB0007ham003- 457 -LRB100 06307 SMS 40923 a

1    central computer to the Administrator and shall make
2    available to the Administrator all books, records, and
3    information required by the Administrator in fulfilling
4    his or her regulatory purpose.
5        (4) A wide area progressive system provider must
6    suspend play on the wide area progressive system if a
7    communication failure of the system cannot be corrected
8    within 24 consecutive hours.
9        (5) Approval by the Board of any wide area progressive
10    system shall occur only after the Administrator has
11    reviewed the wide area progressive system software and
12    hardware and is satisfied that the operation of the system
13    meets accepted industry standards for wide area
14    progressive system products, as well as any other
15    requirements that the Administrator may impose to ensure
16    the integrity, security, and legal operation of the wide
17    area progressive system.
18        (6) A meter that shows the amount of the common
19    progressive jackpot must be conspicuously displayed at or
20    near the machines to which the jackpot applies. The common
21    progressive jackpot meter need not precisely show the
22    actual moneys in the common progressive jackpot award at
23    each instant. Nothing shall prohibit the use of an odometer
24    or other paced updating progressive display to show updates
25    to the jackpot. When a paced updating display is used and
26    the remote site is communicating to the central computer,

 

 

10000SB0007ham003- 458 -LRB100 06307 SMS 40923 a

1    the common progressive jackpot meter must display the
2    winning value after the jackpot broadcast is received from
3    the central system. If a common progressive jackpot is
4    recognized in the middle of a systemwide poll cycle, the
5    common progressive jackpot display may contain a value less
6    than the aggregated amount calculated by the central
7    system. The fund values from the remaining portion of the
8    poll cycle shall be received by the central system, but not
9    the local site, in which case the common progressive
10    jackpot amount paid shall always be the higher of the 2
11    reporting amounts.
12        (7) When a common progressive jackpot is won, the wide
13    area progressive system provider shall have the
14    opportunity to inspect the machine, storage media, the
15    error events received by the central system, and any other
16    data which could reasonably be used to ascertain the
17    validity of the jackpot.
18            (A) The central system shall produce reports that
19        clearly demonstrate the method of arriving at the
20        payoff amount. This shall include the funds
21        contributed beginning with the polling cycle
22        immediately following the previous jackpot and all
23        funds contributed up to and including the polling cycle
24        that includes the jackpot signal. Funds contributed to
25        and registered by the system before the jackpot message
26        is received shall be deemed to have been contributed to

 

 

10000SB0007ham003- 459 -LRB100 06307 SMS 40923 a

1        the progressive amount prior to the current jackpot.
2        Funds contributed to the system subsequent to the
3        jackpot message's being received, as well as funds
4        contributed to the system before the jackpot message is
5        received by the system but registered after the jackpot
6        message is received at the system, shall be deemed to
7        have been contributed to the progressive amount of the
8        next jackpot.
9            (B) The common progressive jackpot may be
10        disbursed in periodic payments as long as each machine
11        clearly displays the fact that the jackpot shall be
12        paid in such periodic payments. In addition, the number
13        of periodic payments and time between payments must be
14        clearly displayed on the slot machine in a
15        non-misleading manner.
16            (C) A wide area progressive system provider must,
17        upon request, supply to the Board reports that support
18        and verify the economic activity of the system.
19        (8) In calculating adjusted gross revenue, a facility
20    may deduct its pro rata share of the present value of any
21    common progressive jackpots awarded. The deduction shall
22    be listed on the detailed accounting records provided by
23    the wide area progressive system provider. A facility's pro
24    rata share is based on the number of funds in from that
25    facility's machines on the wide area progressive system,
26    compared to the total amount of funds in on the whole

 

 

10000SB0007ham003- 460 -LRB100 06307 SMS 40923 a

1    system for the time period between jackpots awarded.
2        (9) In the event a facility ceases operations and a
3    progressive jackpot is awarded subsequent to the last day
4    of the final month of operation, the facility may not file
5    an amended wagering tax submission or make a claim for a
6    wagering tax refund based on its contributions to that
7    particular progressive prize pool.
8        (10) A facility, or an entity that is licensed as a
9    manufacturer or distributor, shall provide the wide area
10    progressive system in accordance with a written agreement
11    that shall be reviewed and approved by the Board prior to
12    offering the jackpots.
13        (11) The payment of any common progressive jackpot
14    offered on a wide area progressive system shall be
15    administered by the wide area progressive system provider,
16    and the provider shall have primary liability for payment
17    of any common progressive jackpot the person administers.
18        (12) A wide area progressive system provider shall
19    comply with the following:
20            (A) A reserve shall be established and maintained
21        by the provider of the wide area progressive system in
22        an amount of not less than the sum of the following
23        amounts:
24                (i) the present value of the aggregate
25            remaining balances owed on all jackpots previously
26            won by patrons on the wide area progressive system;

 

 

10000SB0007ham003- 461 -LRB100 06307 SMS 40923 a

1                (ii) the present value of the amount currently
2            reflected on the jackpot meters of the wide area
3            progressive system; and
4                (iii) the present value of one additional
5            reset of the wide area progressive system.
6            (B) The reserve shall continue to be maintained
7        until all payments owed to winners of the common
8        progressive jackpots have been made.
9            (C) For common progressive jackpots disbursed in
10        periodic payments, any qualified investment shall be
11        purchased within 90 days following notice of the win of
12        the common progressive jackpot, and a copy of such
13        qualified investment shall be provided to the Board
14        within 30 days of purchase. Any qualified investment
15        shall have a surrender value at maturity and shall have
16        a maturity date prior to the date the periodic jackpot
17        payment is required to be made.
18            (D) The person authorized to provide the wide area
19        progressive system shall not be permitted to sell,
20        trade, or otherwise dispose of any qualified
21        investments prior to their maturity unless approval to
22        do so is first obtained from the Board.
23            (E) Upon becoming aware of an event of
24        noncompliance with the terms of the reserve
25        requirement mandated by subparagraph (A) in this
26        paragraph (12), the wide area progressive system

 

 

10000SB0007ham003- 462 -LRB100 06307 SMS 40923 a

1        provider must immediately notify the Board of such
2        event. An event of noncompliance includes a
3        non-payment of a jackpot periodic payment or a
4        circumstance which may cause the wide area progressive
5        system provider to be unable to fulfill, or which may
6        otherwise impair the person's ability to satisfy, the
7        person's jackpot payment obligations.
8            (F) On a quarterly basis, the wide area progressive
9        system provider must deliver to the Board a calculation
10        of system reserves required under subparagraph (A) in
11        this paragraph (12). The calculation shall come with a
12        certification of financial compliance signed by a duly
13        authorized financial officer of the wide area
14        progressive system provider, on a form prescribed by
15        the Board, validating the calculation.
16        (13) For common progressive jackpots disbursed in
17    periodic payments, subsequent to the date of the win, a
18    winner may be offered the option to receive, in lieu of
19    periodic payments, a discounted single cash payment in the
20    form of a qualified prize option, as that term is defined
21    in Section 451(h) of the Internal Revenue Code of 1986. The
22    wide area progressive system provider shall calculate the
23    single cash payment based on the discount rate. Until the
24    new discount rate becomes effective, the discount rate
25    selected by the wide area progressive system provider shall
26    be used to calculate the single cash payment for all

 

 

10000SB0007ham003- 463 -LRB100 06307 SMS 40923 a

1    qualified prizes that occur subsequent to the date of the
2    selected discount rate.
 
3    Section 90-42. The Video Gaming Act is amended by changing
4Sections 5, 20, 25, 35, 45, 60, 79, and 80 and by adding
5Section 90 as follows:
 
6    (230 ILCS 40/5)
7    Sec. 5. Definitions. As used in this Act:
8    "Board" means the Illinois Gaming Board.
9    "Credit" means one, 5, 10, or 25 cents either won or
10purchased by a player.
11    "Distributor" means an individual, partnership,
12corporation, or limited liability company licensed under this
13Act to buy, sell, lease, or distribute video gaming terminals
14or major components or parts of video gaming terminals to or
15from terminal operators.
16    "Electronic card" means a card purchased from a licensed
17establishment, licensed fraternal establishment, licensed
18veterans establishment, or licensed truck stop establishment
19for use in that establishment as a substitute for cash in the
20conduct of gaming on a video gaming terminal.
21    "Electronic voucher" means a voucher printed by an
22electronic video game machine that is redeemable in the
23licensed establishment for which it was issued.
24    "Terminal operator" means an individual, partnership,

 

 

10000SB0007ham003- 464 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 465 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 466 -LRB100 06307 SMS 40923 a

1licensee, (ii) the corporate parent or subsidiary of any
2licensee licensed under the Illinois Horse Racing Act of 1975,
3or (iii) the corporate subsidiary of a corporation that is also
4the corporate parent or subsidiary of any licensee licensed
5under the Illinois Horse Racing Act of 1975. "Licensed
6establishment" does not include a facility operated by an
7organization licensee, an inter-track wagering licensee, or an
8inter-track wagering location licensee licensed under the
9Illinois Horse Racing Act of 1975 or a riverboat licensed under
10the Illinois Riverboat Gambling Act, except as provided in this
11paragraph. The changes made to this definition by Public Act
1298-587 are declarative of existing law.
13    "Licensed fraternal establishment" means the location
14where a qualified fraternal organization that derives its
15charter from a national fraternal organization regularly
16meets.
17    "Licensed veterans establishment" means the location where
18a qualified veterans organization that derives its charter from
19a national veterans organization regularly meets.
20    "Licensed truck stop establishment" means a facility (i)
21that is at least a 3-acre facility with a convenience store,
22(ii) with separate diesel islands for fueling commercial motor
23vehicles, (iii) that sells at retail more than 10,000 gallons
24of diesel or biodiesel fuel per month, and (iv) with parking
25spaces for commercial motor vehicles. "Commercial motor
26vehicles" has the same meaning as defined in Section 18b-101 of

 

 

10000SB0007ham003- 467 -LRB100 06307 SMS 40923 a

1the Illinois Vehicle Code. The requirement of item (iii) of
2this paragraph may be met by showing that estimated future
3sales or past sales average at least 10,000 gallons per month.
4(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
598-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
67-16-14.)
 
7    (230 ILCS 40/20)
8    Sec. 20. Direct dispensing of receipt tickets only. A video
9gaming terminal may not directly dispense coins, cash, tokens,
10or any other article of exchange or value except for receipt
11tickets. Tickets shall be dispensed by pressing the ticket
12dispensing button on the video gaming terminal at the end of
13one's turn or play. The ticket shall indicate the total amount
14of credits and the cash award, the time of day in a 24-hour
15format showing hours and minutes, the date, the terminal serial
16number, the sequential number of the ticket, and an encrypted
17validation number from which the validity of the prize may be
18determined. The player shall turn in this ticket to the
19appropriate person at the licensed establishment, licensed
20truck stop establishment, licensed fraternal establishment, or
21licensed veterans establishment to receive the cash award. The
22cost of the credit shall be one cent, 5 cents, 10 cents, or 25
23cents, and the maximum wager played per hand shall not exceed
24$4 $2. No cash award for the maximum wager on any individual
25hand shall exceed $1,199, except in the case of a wide area

 

 

10000SB0007ham003- 468 -LRB100 06307 SMS 40923 a

1progressive system, as defined in the Illinois Gambling Act,
2which shall have no limits for cash awards $500.
3(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
 
4    (230 ILCS 40/25)
5    Sec. 25. Restriction of licensees.
6    (a) Manufacturer. A person may not be licensed as a
7manufacturer of a video gaming terminal in Illinois unless the
8person has a valid manufacturer's license issued under this
9Act. A manufacturer may only sell video gaming terminals for
10use in Illinois to persons having a valid distributor's
11license.
12    (b) Distributor. A person may not sell, distribute, or
13lease or market a video gaming terminal in Illinois unless the
14person has a valid distributor's license issued under this Act.
15A distributor may only sell video gaming terminals for use in
16Illinois to persons having a valid distributor's or terminal
17operator's license.
18    (c) Terminal operator. A person may not own, maintain, or
19place a video gaming terminal unless he has a valid terminal
20operator's license issued under this Act. A terminal operator
21may only place video gaming terminals for use in Illinois in
22licensed establishments, licensed truck stop establishments,
23licensed fraternal establishments, and licensed veterans
24establishments. No terminal operator may give anything of
25value, including but not limited to a loan or financing

 

 

10000SB0007ham003- 469 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 470 -LRB100 06307 SMS 40923 a

1placed in any licensed establishment, licensed veterans
2establishment, licensed truck stop establishment, or licensed
3fraternal establishment unless the owner or agent of the owner
4of the licensed establishment, licensed veterans
5establishment, licensed truck stop establishment, or licensed
6fraternal establishment has entered into a written use
7agreement with the terminal operator for placement of the
8terminals. A copy of the use agreement shall be on file in the
9terminal operator's place of business and available for
10inspection by individuals authorized by the Board. A licensed
11establishment, licensed truck stop establishment, licensed
12veterans establishment, or licensed fraternal establishment
13may operate up to 6 5 video gaming terminals on its premises at
14any time.
15    (f) (Blank).
16    (g) Financial interest restrictions. As used in this Act,
17"substantial interest" in a partnership, a corporation, an
18organization, an association, a business, or a limited
19liability company means:
20        (A) When, with respect to a sole proprietorship, an
21    individual or his or her spouse owns, operates, manages, or
22    conducts, directly or indirectly, the organization,
23    association, or business, or any part thereof; or
24        (B) When, with respect to a partnership, the individual
25    or his or her spouse shares in any of the profits, or
26    potential profits, of the partnership activities; or

 

 

10000SB0007ham003- 471 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 472 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 473 -LRB100 06307 SMS 40923 a

1licensed truck stop establishment, licensed fraternal
2establishment, or licensed veterans establishment not be
3located within 1,000 feet from a facility operated by an
4organization licensee licensed under the Illinois Horse Racing
5Act of 1975 or the home dock of a riverboat licensed under the
6Illinois Riverboat Gambling Act. The Board shall not grant such
7waiver if there is any common ownership or control, shared
8business activity, or contractual arrangement of any type
9between the establishment and the organization licensee or
10owners licensee of a riverboat. The Board shall adopt rules to
11implement the provisions of this paragraph.
12    (h-5) Restrictions on licenses in malls. The Board shall
13not grant an application to become a licensed video gaming
14location if the Board determines that granting the application
15would more likely than not cause a terminal operator,
16individually or in combination with other terminal operators,
17licensed video gaming location, or other person or entity, to
18operate the video gaming terminals in 2 or more licensed video
19gaming locations as a single video gaming operation.
20        (1) In making determinations under this subsection
21    (h-5), factors to be considered by the Board shall include,
22    but not be limited to, the following:
23            (A) the physical aspects of the location;
24            (B) the ownership, control, or management of the
25        location;
26            (C) any arrangements, understandings, or

 

 

10000SB0007ham003- 474 -LRB100 06307 SMS 40923 a

1        agreements, written or otherwise, among or involving
2        any persons or entities that involve the conducting of
3        any video gaming business or the sharing of costs or
4        revenues; and
5            (D) the manner in which any terminal operator or
6        other related entity markets, advertises, or otherwise
7        describes any location or locations to any other person
8        or entity or to the public.
9        (2) The Board shall presume, subject to rebuttal, that
10    the granting of an application to become a licensed video
11    gaming location within a mall will cause a terminal
12    operator, individually or in combination with other
13    persons or entities, to operate the video gaming terminals
14    in 2 or more licensed video gaming locations as a single
15    video gaming operation if the Board determines that
16    granting the license would create a local concentration of
17    licensed video gaming locations.
18    For the purposes of this subsection (h-5):
19    "Mall" means a building, or adjoining or connected
20buildings, containing 4 or more separate locations.
21    "Video gaming operation" means the conducting of video
22gaming and all related activities.
23    "Location" means a space within a mall containing a
24separate business, a place for a separate business, or a place
25subject to a separate leasing arrangement by the mall owner.
26    "Licensed video gaming location" means a licensed

 

 

10000SB0007ham003- 475 -LRB100 06307 SMS 40923 a

1establishment, licensed fraternal establishment, licensed
2veterans establishment, or licensed truck stop.
3    "Local concentration of licensed video gaming locations"
4means that the combined number of licensed video gaming
5locations within a mall exceed half of the separate locations
6within the mall.
7    (i) Undue economic concentration. In addition to
8considering all other requirements under this Act, in deciding
9whether to approve the operation of video gaming terminals by a
10terminal operator in a location, the Board shall consider the
11impact of any economic concentration of such operation of video
12gaming terminals. The Board shall not allow a terminal operator
13to operate video gaming terminals if the Board determines such
14operation will result in undue economic concentration. For
15purposes of this Section, "undue economic concentration" means
16that a terminal operator would have such actual or potential
17influence over video gaming terminals in Illinois as to:
18        (1) substantially impede or suppress competition among
19    terminal operators;
20        (2) adversely impact the economic stability of the
21    video gaming industry in Illinois; or
22        (3) negatively impact the purposes of the Video Gaming
23    Act.
24    The Board shall adopt rules concerning undue economic
25concentration with respect to the operation of video gaming
26terminals in Illinois. The rules shall include, but not be

 

 

10000SB0007ham003- 476 -LRB100 06307 SMS 40923 a

1limited to, (i) limitations on the number of video gaming
2terminals operated by any terminal operator within a defined
3geographic radius and (ii) guidelines on the discontinuation of
4operation of any such video gaming terminals the Board
5determines will cause undue economic concentration.
6    (j) The provisions of the Illinois Antitrust Act are fully
7and equally applicable to the activities of any licensee under
8this Act.
9(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
10eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
11    (230 ILCS 40/35)
12    Sec. 35. Display of license; confiscation; violation as
13felony.
14    (a) Each video gaming terminal shall be licensed by the
15Board before placement or operation on the premises of a
16licensed establishment, licensed truck stop establishment,
17licensed fraternal establishment, or licensed veterans
18establishment. The license of each video gaming terminal shall
19be maintained at the location where the video gaming terminal
20is operated. Failure to do so is a petty offense with a fine
21not to exceed $100. Any licensed establishment, licensed truck
22stop establishment, licensed fraternal establishment, or
23licensed veterans establishment used for the conduct of
24gambling games in violation of this Act shall be considered a
25gambling place in violation of Section 28-3 of the Criminal

 

 

10000SB0007ham003- 477 -LRB100 06307 SMS 40923 a

1Code of 2012. Every gambling device found in a licensed
2establishment, licensed truck stop establishment, licensed
3fraternal establishment, or licensed veterans establishment
4operating gambling games in violation of this Act shall be
5subject to seizure, confiscation, and destruction as provided
6in Section 28-5 of the Criminal Code of 2012. Any license
7issued under the Liquor Control Act of 1934 to any owner or
8operator of a licensed establishment, licensed truck stop
9establishment, licensed fraternal establishment, or licensed
10veterans establishment that operates or permits the operation
11of a video gaming terminal within its establishment in
12violation of this Act shall be immediately revoked. No person
13may own, operate, have in his or her possession or custody or
14under his or her control, or permit to be kept in any place
15under his or her possession or control, any device that awards
16credits and contains a circuit, meter, or switch capable of
17removing and recording the removal of credits when the award of
18credits is dependent upon chance.
19    Nothing in this Section shall be deemed to prohibit the use
20of a game device only if the game device is used in an activity
21that is not gambling under subsection (b) of Section 28-1 of
22the Criminal Code of 2012. A licensee under this Act shall not
23be in violation of this Act or Illinois Gaming Board rules and
24shall not be subject to disciplinary action for operating a
25game device if it is in compliance with and not considered
26gambling under subsection (b) of Section 28-1 of the Criminal

 

 

10000SB0007ham003- 478 -LRB100 06307 SMS 40923 a

1Code of 2012.
2    A violation of this Section is a Class 4 felony. All
3devices that are owned, operated, or possessed in violation of
4this Section are hereby declared to be public nuisances and
5shall be subject to seizure, confiscation, and destruction as
6provided in Section 28-5 of the Criminal Code of 2012.
7    The provisions of this Section do not apply to devices or
8electronic video game terminals licensed pursuant to this Act.
9A video gaming terminal operated for amusement only and bearing
10a valid amusement tax sticker shall not be subject to this
11Section until 30 days after the Board establishes that the
12central communications system is functional.
13    (b) (1) The odds of winning each video game shall be posted
14on or near each video gaming terminal. The manner in which the
15odds are calculated and how they are posted shall be determined
16by the Board by rule.
17    (2) No video gaming terminal licensed under this Act may be
18played except during the legal hours of operation allowed for
19the consumption of alcoholic beverages at the licensed
20establishment, licensed fraternal establishment, or licensed
21veterans establishment. A licensed establishment, licensed
22fraternal establishment, or licensed veterans establishment
23that violates this subsection is subject to termination of its
24license by the Board.
25(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
 

 

 

10000SB0007ham003- 479 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 480 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 481 -LRB100 06307 SMS 40923 a

1names and addresses of all partners, both general and limited.
2    (d) No person may be licensed as a video gaming terminal
3manufacturer, distributor, supplier, operator, handler,
4licensed establishment, licensed truck stop establishment,
5licensed fraternal establishment, or licensed veterans
6establishment if that person has been found by the Board to:
7        (1) have a background, including a criminal record,
8    reputation, habits, social or business associations, or
9    prior activities that pose a threat to the public interests
10    of the State or to the security and integrity of video
11    gaming;
12        (2) create or enhance the dangers of unsuitable,
13    unfair, or illegal practices, methods, and activities in
14    the conduct of video gaming; or
15        (3) present questionable business practices and
16    financial arrangements incidental to the conduct of video
17    gaming activities.
18    (e) Any applicant for any license under this Act has the
19burden of proving his or her qualifications to the satisfaction
20of the Board. The Board may adopt rules to establish additional
21qualifications and requirements to preserve the integrity and
22security of video gaming in this State.
23    (f) A non-refundable application fee shall be paid at the
24time an application for a license is filed with the Board in
25the following amounts:
26        (1) Manufacturer..........................$5,000

 

 

10000SB0007ham003- 482 -LRB100 06307 SMS 40923 a

1        (2) Distributor...........................$5,000
2        (3) Terminal operator.....................$5,000
3        (4) Supplier..............................$2,500
4        (5) Technician..............................$100
5        (6) Terminal Handler..............................$50
6    (g) The Board shall establish an annual fee for each
7license not to exceed the following:
8        (1) Manufacturer.........................$10,000
9        (2) Distributor..........................$10,000
10        (3) Terminal operator.....................$5,000
11        (4) Supplier..............................$2,000
12        (5) Technician..............................$100
13        (6) Licensed establishment, licensed truck stop
14    establishment, licensed fraternal establishment,
15    or licensed veterans establishment..............$100
16        (7) Video gaming terminal...................$100
17        (8) Terminal Handler..............................$50
18    (h) A terminal operator and a licensed establishment,
19licensed truck stop establishment, licensed fraternal
20establishment, or licensed veterans establishment shall
21equally split the fees specified in item (7) of subsection (g).
22(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
2398-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
24    (230 ILCS 40/60)
25    Sec. 60. Imposition and distribution of tax.

 

 

10000SB0007ham003- 483 -LRB100 06307 SMS 40923 a

1    (a) A tax of 35% 30% is imposed on net terminal income and
2shall be collected by the Board.
3    (b) Of the tax collected under this Section, five-sixths
4shall be deposited into the Capital Projects Fund and one-sixth
5shall be deposited into the Local Government Video Gaming
6Distributive Fund. Of the amount deposited into the Local
7Government Video Gaming Distributive Fund, half of the deposits
8may be used by each municipality for contributions under
9Sections 4-118 and 5-168 of the Illinois Pension Code.
10    (c) Revenues generated from the play of video gaming
11terminals shall be deposited by the terminal operator, who is
12responsible for tax payments, in a specially created, separate
13bank account maintained by the video gaming terminal operator
14to allow for electronic fund transfers of moneys for tax
15payment.
16    (d) Each licensed establishment, licensed truck stop
17establishment, licensed fraternal establishment, and licensed
18veterans establishment shall maintain an adequate video gaming
19fund, with the amount to be determined by the Board.
20    (e) The State's percentage of net terminal income shall be
21reported and remitted to the Board within 15 days after the
2215th day of each month and within 15 days after the end of each
23month by the video terminal operator. A video terminal operator
24who falsely reports or fails to report the amount due required
25by this Section is guilty of a Class 4 felony and is subject to
26termination of his or her license by the Board. Each video

 

 

10000SB0007ham003- 484 -LRB100 06307 SMS 40923 a

1terminal operator shall keep a record of net terminal income in
2such form as the Board may require. All payments not remitted
3when due shall be paid together with a penalty assessment on
4the unpaid balance at a rate of 1.5% per month.
5(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
6    (230 ILCS 40/79)
7    Sec. 79. Investigators. Investigators appointed by the
8Board pursuant to the powers conferred upon the Board by
9paragraph (20.6) of subsection (c) of Section 5 of the Illinois
10Riverboat Gambling Act and Section 80 of this Act shall have
11authority to conduct investigations, searches, seizures,
12arrests, and other duties imposed under this Act and the
13Illinois Riverboat Gambling Act, as deemed necessary by the
14Board. These investigators have and may exercise all of the
15rights and powers of peace officers, provided that these powers
16shall be (1) limited to offenses or violations occurring or
17committed in connection with conduct subject to this Act,
18including, but not limited to, the manufacture, distribution,
19supply, operation, placement, service, maintenance, or play of
20video gaming terminals and the distribution of profits and
21collection of revenues resulting from such play, and (2)
22exercised, to the fullest extent practicable, in cooperation
23with the local police department of the applicable municipality
24or, if these powers are exercised outside the boundaries of an
25incorporated municipality or within a municipality that does

 

 

10000SB0007ham003- 485 -LRB100 06307 SMS 40923 a

1not have its own police department, in cooperation with the
2police department whose jurisdiction encompasses the
3applicable locality.
4(Source: P.A. 97-809, eff. 7-13-12.)
 
5    (230 ILCS 40/80)
6    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
7The provisions of the Illinois Riverboat Gambling Act, and all
8rules promulgated thereunder, shall apply to the Video Gaming
9Act, except where there is a conflict between the 2 Acts. In
10the event of a conflict between the 2 Acts, the provisions of
11the Illinois Gambling Act shall prevail. All provisions of the
12Uniform Penalty and Interest Act shall apply, as far as
13practicable, to the subject matter of this Act to the same
14extent as if such provisions were included herein.
15(Source: P.A. 96-37, eff. 7-13-09.)
 
16    (230 ILCS 40/90 new)
17    Sec. 90. Wide area progressive systems. The operation of a
18wide area progressive system, as defined in the Illinois
19Gambling Act, is permitted, subject to the provisions of the
20Illinois Gambling Act, and the following conditions:
21        (1) Licensed terminal operators and manufacturer or
22    supplier licensees may operate one or more wide area
23    progressive systems in licensed establishments, licensed
24    truck stop establishments, licensed veterans

 

 

10000SB0007ham003- 486 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 487 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 488 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 489 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 490 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 491 -LRB100 06307 SMS 40923 a

1per year and the storage of such spirits. If a craft distiller
2licensee, including a craft distiller licensee who holds more
3than one craft distiller license, is not affiliated with any
4other manufacturer of spirits, then the craft distiller
5licensee may sell such spirits to distributors in this State
6and up to 2,500 gallons of such spirits to non-licensees to the
7extent permitted by any exemption approved by the Commission
8pursuant to Section 6-4 of this Act. A craft distiller license
9holder may store such spirits at a non-contiguous licensed
10location, but at no time shall a craft distiller license holder
11directly or indirectly produce in the aggregate more than
12100,000 gallons of spirits per year.
13    A craft distiller licensee may hold more than one craft
14distiller's license. However, a craft distiller that holds more
15than one craft distiller license shall not manufacture, in the
16aggregate, more than 100,000 gallons of spirits by distillation
17per year and shall not sell, in the aggregate, more than 2,500
18gallons of such spirits to non-licensees in accordance with an
19exemption approved by the State Commission pursuant to Section
206-4 of this Act.
21    Any craft distiller licensed under this Act who on July 28,
222010 (the effective date of Public Act 96-1367) was licensed as
23a distiller and manufactured no more spirits than permitted by
24this Section shall not be required to pay the initial licensing
25fee.
26    Class 10. A class 1 brewer license, which may only be

 

 

10000SB0007ham003- 492 -LRB100 06307 SMS 40923 a

1issued to a licensed brewer or licensed non-resident dealer,
2shall allow the manufacture of up to 930,000 gallons of beer
3per year provided that the class 1 brewer licensee does not
4manufacture more than a combined 930,000 gallons of beer per
5year and is not a member of or affiliated with, directly or
6indirectly, a manufacturer that produces more than 930,000
7gallons of beer per year or any other alcoholic liquor. A class
81 brewer licensee may make sales and deliveries to importing
9distributors and distributors and to retail licensees in
10accordance with the conditions set forth in paragraph (18) of
11subsection (a) of Section 3-12 of this Act.
12    Class 11. A class 2 brewer license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 3,720,000 gallons of beer
15per year provided that the class 2 brewer licensee does not
16manufacture more than a combined 3,720,000 gallons of beer per
17year and is not a member of or affiliated with, directly or
18indirectly, a manufacturer that produces more than 3,720,000
19gallons of beer per year or any other alcoholic liquor. A class
202 brewer licensee may make sales and deliveries to importing
21distributors and distributors, but shall not make sales or
22deliveries to any other licensee. If the State Commission
23provides prior approval, a class 2 brewer licensee may annually
24transfer up to 3,720,000 gallons of beer manufactured by that
25class 2 brewer licensee to the premises of a licensed class 2
26brewer wholly owned and operated by the same licensee.

 

 

10000SB0007ham003- 493 -LRB100 06307 SMS 40923 a

1    (a-1) A manufacturer which is licensed in this State to
2make sales or deliveries of alcoholic liquor to licensed
3distributors or importing distributors and which enlists
4agents, representatives, or individuals acting on its behalf
5who contact licensed retailers on a regular and continual basis
6in this State must register those agents, representatives, or
7persons acting on its behalf with the State Commission.
8    Registration of agents, representatives, or persons acting
9on behalf of a manufacturer is fulfilled by submitting a form
10to the Commission. The form shall be developed by the
11Commission and shall include the name and address of the
12applicant, the name and address of the manufacturer he or she
13represents, the territory or areas assigned to sell to or
14discuss pricing terms of alcoholic liquor, and any other
15questions deemed appropriate and necessary. All statements in
16the forms required to be made by law or by rule shall be deemed
17material, and any person who knowingly misstates any material
18fact under oath in an application is guilty of a Class B
19misdemeanor. Fraud, misrepresentation, false statements,
20misleading statements, evasions, or suppression of material
21facts in the securing of a registration are grounds for
22suspension or revocation of the registration. The State
23Commission shall post a list of registered agents on the
24Commission's website.
25    (b) A distributor's license shall allow the wholesale
26purchase and storage of alcoholic liquors and sale of alcoholic

 

 

10000SB0007ham003- 494 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 495 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 496 -LRB100 06307 SMS 40923 a

1license must (i) furnish with the application: (A) a resale
2number issued under Section 2c of the Retailers' Occupation Tax
3Act or evidence that the applicant is registered under Section
42a of the Retailers' Occupation Tax Act, (B) a current, valid
5exemption identification number issued under Section 1g of the
6Retailers' Occupation Tax Act, and a certification to the
7Commission that the purchase of alcoholic liquors will be a
8tax-exempt purchase, or (C) a statement that the applicant is
9not registered under Section 2a of the Retailers' Occupation
10Tax Act, does not hold a resale number under Section 2c of the
11Retailers' Occupation Tax Act, and does not hold an exemption
12number under Section 1g of the Retailers' Occupation Tax Act,
13in which event the Commission shall set forth on the special
14event retailer's license a statement to that effect; (ii)
15submit with the application proof satisfactory to the State
16Commission that the applicant will provide dram shop liability
17insurance in the maximum limits; and (iii) show proof
18satisfactory to the State Commission that the applicant has
19obtained local authority approval.
20    (f) A railroad license shall permit the licensee to import
21alcoholic liquors into this State from any point in the United
22States outside this State and to store such alcoholic liquors
23in this State; to make wholesale purchases of alcoholic liquors
24directly from manufacturers, foreign importers, distributors
25and importing distributors from within or outside this State;
26and to store such alcoholic liquors in this State; provided

 

 

10000SB0007ham003- 497 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 498 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 499 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 500 -LRB100 06307 SMS 40923 a

1but shall not permit the sale for resale of any alcoholic
2liquors to any licensee within this State. A single airplane
3license shall be required of an airline company if liquor
4service is provided on board aircraft in this State. The annual
5fee for such license shall be as determined in Section 5-3.
6    (k) A foreign importer's license shall permit such licensee
7to purchase alcoholic liquor from Illinois licensed
8non-resident dealers only, and to import alcoholic liquor other
9than in bulk from any point outside the United States and to
10sell such alcoholic liquor to Illinois licensed importing
11distributors and to no one else in Illinois; provided that (i)
12the foreign importer registers with the State Commission every
13brand of alcoholic liquor that it proposes to sell to Illinois
14licensees during the license period, (ii) the foreign importer
15complies with all of the provisions of Section 6-9 of this Act
16with respect to registration of such Illinois licensees as may
17be granted the right to sell such brands at wholesale, and
18(iii) the foreign importer complies with the provisions of
19Sections 6-5 and 6-6 of this Act to the same extent that these
20provisions apply to manufacturers.
21    (l) (i) A broker's license shall be required of all persons
22who solicit orders for, offer to sell or offer to supply
23alcoholic liquor to retailers in the State of Illinois, or who
24offer to retailers to ship or cause to be shipped or to make
25contact with distillers, rectifiers, brewers or manufacturers
26or any other party within or without the State of Illinois in

 

 

10000SB0007ham003- 501 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 502 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 503 -LRB100 06307 SMS 40923 a

1non-resident dealer shall be granted a distributor's or
2importing distributor's license.
3    (n) A brew pub license shall allow the licensee to only (i)
4manufacture up to 155,000 gallons of beer per year only on the
5premises specified in the license, (ii) make sales of the beer
6manufactured on the premises or, with the approval of the
7Commission, beer manufactured on another brew pub licensed
8premises that is wholly owned and operated by the same licensee
9to importing distributors, distributors, and to non-licensees
10for use and consumption, (iii) store the beer upon the
11premises, (iv) sell and offer for sale at retail from the
12licensed premises for off-premises consumption no more than
13155,000 gallons per year so long as such sales are only made
14in-person, (v) sell and offer for sale at retail for use and
15consumption on the premises specified in the license any form
16of alcoholic liquor purchased from a licensed distributor or
17importing distributor, and (vi) with the prior approval of the
18Commission, annually transfer no more than 155,000 gallons of
19beer manufactured on the premises to a licensed brew pub wholly
20owned and operated by the same licensee.
21    A brew pub licensee shall not under any circumstance sell
22or offer for sale beer manufactured by the brew pub licensee to
23retail licensees.
24    A person who holds a class 2 brewer license may
25simultaneously hold a brew pub license if the class 2 brewer
26(i) does not, under any circumstance, sell or offer for sale

 

 

10000SB0007ham003- 504 -LRB100 06307 SMS 40923 a

1beer manufactured by the class 2 brewer to retail licensees;
2(ii) does not hold more than 3 brew pub licenses in this State;
3(iii) does not manufacture more than a combined 3,720,000
4gallons of beer per year, including the beer manufactured at
5the brew pub; and (iv) is not a member of or affiliated with,
6directly or indirectly, a manufacturer that produces more than
73,720,000 gallons of beer per year or any other alcoholic
8liquor.
9    Notwithstanding any other provision of this Act, a licensed
10brewer, class 2 brewer, or non-resident dealer who before July
111, 2015 manufactured less than 3,720,000 gallons of beer per
12year and held a brew pub license on or before July 1, 2015 may
13(i) continue to qualify for and hold that brew pub license for
14the licensed premises and (ii) manufacture more than 3,720,000
15gallons of beer per year and continue to qualify for and hold
16that brew pub license if that brewer, class 2 brewer, or
17non-resident dealer does not simultaneously hold a class 1
18brewer license and is not a member of or affiliated with,
19directly or indirectly, a manufacturer that produces more than
203,720,000 gallons of beer per year or that produces any other
21alcoholic liquor.
22    (o) A caterer retailer license shall allow the holder to
23serve alcoholic liquors as an incidental part of a food service
24that serves prepared meals which excludes the serving of snacks
25as the primary meal, either on or off-site whether licensed or
26unlicensed.

 

 

10000SB0007ham003- 505 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 506 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 507 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 508 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 509 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 510 -LRB100 06307 SMS 40923 a

1this State. A winery shipper licensed under this subsection (r)
2must comply with the requirements of Section 6-29 of this Act.
3    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
4Section 3-12, the State Commission may receive, respond to, and
5investigate any complaint and impose any of the remedies
6specified in paragraph (1) of subsection (a) of Section 3-12.
7    As used in this subsection, "third-party provider" means
8any entity that provides fulfillment house services, including
9warehousing, packaging, distribution, order processing, or
10shipment of wine, but not the sale of wine, on behalf of a
11licensed winery shipper.
12    (s) A craft distiller tasting permit license shall allow an
13Illinois licensed craft distiller to transfer a portion of its
14alcoholic liquor inventory from its craft distiller licensed
15premises to the premises specified in the license hereby
16created and to conduct a sampling, only in the premises
17specified in the license hereby created, of the transferred
18alcoholic liquor in accordance with subsection (c) of Section
196-31 of this Act. The transferred alcoholic liquor may not be
20sold or resold in any form. An applicant for the craft
21distiller tasting permit license must also submit with the
22application proof satisfactory to the State Commission that the
23applicant will provide dram shop liability insurance to the
24maximum limits and have local authority approval.
25(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
2699-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.

 

 

10000SB0007ham003- 511 -LRB100 06307 SMS 40923 a

11-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
 
2    (235 ILCS 5/6-30)  (from Ch. 43, par. 144f)
3    Sec. 6-30. Notwithstanding any other provision of this Act,
4the Illinois Gaming Board shall have exclusive authority to
5establish the hours for sale and consumption of alcoholic
6liquor on board a riverboat during riverboat gambling
7excursions and in a casino conducted in accordance with the
8Illinois Riverboat Gambling Act.
9(Source: P.A. 87-826.)
 
10    Section 90-46. The Illinois Public Aid Code is amended by
11changing Section 10-17.15 as follows:
 
12    (305 ILCS 5/10-17.15)
13    Sec. 10-17.15. Certification of information to State
14gaming licensees.
15    (a) For purposes of this Section, "State gaming licensee"
16means, as applicable, an organization licensee or advance
17deposit wagering licensee licensed under the Illinois Horse
18Racing Act of 1975, an owners licensee licensed under the
19Illinois Riverboat Gambling Act, or a licensee that operates,
20under any law of this State, one or more facilities or gaming
21locations at which lawful gambling is authorized and licensed
22as provided in the Illinois Riverboat Gambling Act.
23    (b) The Department may provide, by rule, for certification

 

 

10000SB0007ham003- 512 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 513 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 514 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 515 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 516 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 517 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 518 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 519 -LRB100 06307 SMS 40923 a

1purpose of storing or retrieving a firearm within the vehicle's
2trunk. For purposes of this subsection, "case" includes a glove
3compartment or console that completely encloses the concealed
4firearm or ammunition, the trunk of the vehicle, or a firearm
5carrying box, shipping box, or other container.
6    (c) A licensee shall not be in violation of this Section
7while he or she is traveling along a public right of way that
8touches or crosses any of the premises under subsection (a),
9(a-5), or (a-10) of this Section if the concealed firearm is
10carried on his or her person in accordance with the provisions
11of this Act or is being transported in a vehicle by the
12licensee in accordance with all other applicable provisions of
13law.
14    (d) Signs stating that the carrying of firearms is
15prohibited shall be clearly and conspicuously posted at the
16entrance of a building, premises, or real property specified in
17this Section as a prohibited area, unless the building or
18premises is a private residence. Signs shall be of a uniform
19design as established by the Department and shall be 4 inches
20by 6 inches in size. The Department shall adopt rules for
21standardized signs to be used under this subsection.
22(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
 
23    Section 90-50. The Criminal Code of 2012 is amended by
24changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
25follows:
 

 

 

10000SB0007ham003- 520 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 521 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 522 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 523 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 524 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 525 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 526 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 527 -LRB100 06307 SMS 40923 a

1        (2) Offers of prizes, award or compensation to the
2    actual contestants in any bona fide contest for the
3    determination of skill, speed, strength or endurance or to
4    the owners of animals or vehicles entered in the contest;
5        (3) Pari-mutuel betting as authorized by law of this
6    State;
7        (4) Manufacture of gambling devices, including the
8    acquisition of essential parts therefor and the assembly
9    thereof, for transportation in interstate or foreign
10    commerce to any place outside this State when the
11    transportation is not prohibited by any applicable Federal
12    law;
13        (5) Raffles and poker runs when conducted in accordance
14    with the Raffles and Poker Runs Act;
15        (6) Gambling games conducted on riverboats, in
16    casinos, or at organization gaming facilities when
17    authorized by the Illinois Riverboat Gambling Act;
18        (7) Video gaming terminal games at a licensed
19    establishment, licensed truck stop establishment, licensed
20    fraternal establishment, or licensed veterans
21    establishment when conducted in accordance with the Video
22    Gaming Act; and
23        (8) Savings promotion raffles authorized under Section
24    5g of the Illinois Banking Act, Section 7008 of the Savings
25    Bank Act, Section 42.7 of the Illinois Credit Union Act,
26    Section 5136B of the National Bank Act (12 U.S.C. 25a), or

 

 

10000SB0007ham003- 528 -LRB100 06307 SMS 40923 a

1    Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
2    (f) Sentence. Syndicated gambling is a Class 3 felony.
3(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
4    (720 ILCS 5/28-3)   (from Ch. 38, par. 28-3)
5    Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
6any real estate, vehicle, boat or any other property whatsoever
7used for the purposes of gambling other than gambling conducted
8in the manner authorized by the Illinois Riverboat Gambling Act
9or the Video Gaming Act. Any person who knowingly permits any
10premises or property owned or occupied by him or under his
11control to be used as a gambling place commits a Class A
12misdemeanor. Each subsequent offense is a Class 4 felony. When
13any premises is determined by the circuit court to be a
14gambling place:
15    (a) Such premises is a public nuisance and may be proceeded
16against as such, and
17    (b) All licenses, permits or certificates issued by the
18State of Illinois or any subdivision or public agency thereof
19authorizing the serving of food or liquor on such premises
20shall be void; and no license, permit or certificate so
21cancelled shall be reissued for such premises for a period of
2260 days thereafter; nor shall any person convicted of keeping a
23gambling place be reissued such license for one year from his
24conviction and, after a second conviction of keeping a gambling
25place, any such person shall not be reissued such license, and

 

 

10000SB0007ham003- 529 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 530 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 531 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 532 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 533 -LRB100 06307 SMS 40923 a

1    (Text of Section after amendment by P.A. 100-512)
2    Sec. 28-5. Seizure of gambling devices and gambling funds.
3    (a) Every device designed for gambling which is incapable
4of lawful use or every device used unlawfully for gambling
5shall be considered a "gambling device", and shall be subject
6to seizure, confiscation and destruction by the Department of
7State Police or by any municipal, or other local authority,
8within whose jurisdiction the same may be found. As used in
9this Section, a "gambling device" includes any slot machine,
10and includes any machine or device constructed for the
11reception of money or other thing of value and so constructed
12as to return, or to cause someone to return, on chance to the
13player thereof money, property or a right to receive money or
14property. With the exception of any device designed for
15gambling which is incapable of lawful use, no gambling device
16shall be forfeited or destroyed unless an individual with a
17property interest in said device knows of the unlawful use of
18the device.
19    (b) Every gambling device shall be seized and forfeited to
20the county wherein such seizure occurs. Any money or other
21thing of value integrally related to acts of gambling shall be
22seized and forfeited to the county wherein such seizure occurs.
23    (c) If, within 60 days after any seizure pursuant to
24subparagraph (b) of this Section, a person having any property
25interest in the seized property is charged with an offense, the

 

 

10000SB0007ham003- 534 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 535 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 536 -LRB100 06307 SMS 40923 a

1organization gaming facility as authorized under the Illinois
2Riverboat Gambling Act is exempt from seizure under this
3Section.
4    (f) Any gambling equipment, devices and supplies provided
5by a licensed supplier in accordance with the Illinois
6Riverboat Gambling Act which are removed from a the riverboat,
7casino, or organization gaming facility for repair are exempt
8from seizure under this Section.
9    (g) The following video gaming terminals are exempt from
10seizure under this Section:
11        (1) Video gaming terminals for sale to a licensed
12    distributor or operator under the Video Gaming Act.
13        (2) Video gaming terminals used to train licensed
14    technicians or licensed terminal handlers.
15        (3) Video gaming terminals that are removed from a
16    licensed establishment, licensed truck stop establishment,
17    licensed fraternal establishment, or licensed veterans
18    establishment for repair.
19    (h) Property seized or forfeited under this Section is
20subject to reporting under the Seizure and Forfeiture Reporting
21Act.
22(Source: P.A. 100-512, eff. 7-1-18.)
 
23    (720 ILCS 5/28-7)   (from Ch. 38, par. 28-7)
24    Sec. 28-7. Gambling contracts void.
25    (a) All promises, notes, bills, bonds, covenants,

 

 

10000SB0007ham003- 537 -LRB100 06307 SMS 40923 a

1contracts, agreements, judgments, mortgages, or other
2securities or conveyances made, given, granted, drawn, or
3entered into, or executed by any person whatsoever, where the
4whole or any part of the consideration thereof is for any money
5or thing of value, won or obtained in violation of any Section
6of this Article are null and void.
7    (b) Any obligation void under this Section may be set aside
8and vacated by any court of competent jurisdiction, upon a
9complaint filed for that purpose, by the person so granting,
10giving, entering into, or executing the same, or by his
11executors or administrators, or by any creditor, heir, legatee,
12purchaser or other person interested therein; or if a judgment,
13the same may be set aside on motion of any person stated above,
14on due notice thereof given.
15    (c) No assignment of any obligation void under this Section
16may in any manner affect the defense of the person giving,
17granting, drawing, entering into or executing such obligation,
18or the remedies of any person interested therein.
19    (d) This Section shall not prevent a licensed owner of a
20riverboat gambling operation, a casino gambling operation, or
21an organization gaming licensee under the Illinois Gambling Act
22and the Illinois Horse Racing Act of 1975 from instituting a
23cause of action to collect any amount due and owing under an
24extension of credit to a riverboat gambling patron as
25authorized under Section 11.1 of the Illinois Riverboat
26Gambling Act.

 

 

10000SB0007ham003- 538 -LRB100 06307 SMS 40923 a

1(Source: P.A. 87-826.)
 
2    Section 90-55. The Eminent Domain Act is amended by adding
3Section 15-5-48 as follows:
 
4    (735 ILCS 30/15-5-48 new)
5    Sec. 15-5-48. Eminent domain powers in new Acts. The
6following provisions of law may include express grants of the
7power to acquire property by condemnation or eminent domain:
 
8    Chicago Casino Development Authority Act; City of Chicago; for
9    the purposes of the Act.
 
10    Section 90-60. The Payday Loan Reform Act is amended by
11changing Section 3-5 as follows:
 
12    (815 ILCS 122/3-5)
13    Sec. 3-5. Licensure.
14    (a) A license to make a payday loan shall state the
15address, including city and state, at which the business is to
16be conducted and shall state fully the name of the licensee.
17The license shall be conspicuously posted in the place of
18business of the licensee and shall not be transferable or
19assignable.
20    (b) An application for a license shall be in writing and in
21a form prescribed by the Secretary. The Secretary may not issue

 

 

10000SB0007ham003- 539 -LRB100 06307 SMS 40923 a

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

 

 

10000SB0007ham003- 540 -LRB100 06307 SMS 40923 a

1the summons and specifying the hour and day of service.
2    (e) A licensee must pay an annual fee of $1,000. In
3addition to the license fee, the reasonable expense of any
4examination or hearing by the Secretary under any provisions of
5this Act shall be borne by the licensee. If a licensee fails to
6renew its license by December 31, its license shall
7automatically expire; however, the Secretary, in his or her
8discretion, may reinstate an expired license upon:
9        (1) payment of the annual fee within 30 days of the
10    date of expiration; and
11        (2) proof of good cause for failure to renew.
12    (f) Not more than one place of business shall be maintained
13under the same license, but the Secretary may issue more than
14one license to the same licensee upon compliance with all the
15provisions of this Act governing issuance of a single license.
16The location, except those locations already in existence as of
17June 1, 2005, may not be within one mile of a horse race track
18subject to the Illinois Horse Racing Act of 1975, within one
19mile of a facility at which gambling is conducted under the
20Illinois Riverboat Gambling Act, within one mile of the
21location at which a riverboat subject to the Illinois Riverboat
22Gambling Act docks, or within one mile of any State of Illinois
23or United States military base or naval installation.
24    (g) No licensee shall conduct the business of making loans
25under this Act within any office, suite, room, or place of
26business in which (1) any loans are offered or made under the

 

 

10000SB0007ham003- 541 -LRB100 06307 SMS 40923 a

1Consumer Installment Loan Act other than title secured loans as
2defined in subsection (a) of Section 15 of the Consumer
3Installment Loan Act and governed by Title 38, Section 110.330
4of the Illinois Administrative Code or (2) any other business
5is solicited or engaged in unless the other business is
6licensed by the Department or, in the opinion of the Secretary,
7the other business would not be contrary to the best interests
8of consumers and is authorized by the Secretary in writing.
9    (g-5) Notwithstanding subsection (g) of this Section, a
10licensee may obtain a license under the Consumer Installment
11Loan Act (CILA) for the exclusive purpose and use of making
12title secured loans, as defined in subsection (a) of Section 15
13of CILA and governed by Title 38, Section 110.300 of the
14Illinois Administrative Code. A licensee may continue to
15service Consumer Installment Loan Act loans that were
16outstanding as of the effective date of this amendatory Act of
17the 96th General Assembly.
18    (h) The Secretary shall maintain a list of licensees that
19shall be available to interested consumers and lenders and the
20public. The Secretary shall maintain a toll-free number whereby
21consumers may obtain information about licensees. The
22Secretary shall also establish a complaint process under which
23an aggrieved consumer may file a complaint against a licensee
24or non-licensee who violates any provision of this Act.
25(Source: P.A. 96-936, eff. 3-21-11.)
 

 

 

10000SB0007ham003- 542 -LRB100 06307 SMS 40923 a

1    Section 90-65. The Travel Promotion Consumer Protection
2Act is amended by changing Section 2 as follows:
 
3    (815 ILCS 420/2)  (from Ch. 121 1/2, par. 1852)
4    Sec. 2. Definitions.
5    (a) "Travel promoter" means a person, including a tour
6operator, who sells, provides, furnishes, contracts for,
7arranges or advertises that he or she will arrange wholesale or
8retail transportation by air, land, sea or navigable stream,
9either separately or in conjunction with other services.
10"Travel promoter" does not include (1) an air carrier; (2) a
11sea carrier; (3) an officially appointed agent of an air
12carrier who is a member in good standing of the Airline
13Reporting Corporation; (4) a travel promoter who has in force
14$1,000,000 or more of liability insurance coverage for
15professional errors and omissions and a surety bond or
16equivalent surety in the amount of $100,000 or more for the
17benefit of consumers in the event of a bankruptcy on the part
18of the travel promoter; or (5) a riverboat subject to
19regulation under the Illinois Riverboat Gambling Act.
20    (b) "Advertise" means to make any representation in the
21solicitation of passengers and includes communication with
22other members of the same partnership, corporation, joint
23venture, association, organization, group or other entity.
24    (c) "Passenger" means a person on whose behalf money or
25other consideration has been given or is to be given to

 

 

10000SB0007ham003- 543 -LRB100 06307 SMS 40923 a

1another, including another member of the same partnership,
2corporation, joint venture, association, organization, group
3or other entity, for travel.
4    (d) "Ticket or voucher" means a writing or combination of
5writings which is itself good and sufficient to obtain
6transportation and other services for which the passenger has
7contracted.
8(Source: P.A. 91-357, eff. 7-29-99.)
 
9    Section 90-67. The Prizes and Gifts Act is amended by
10changing Sections 1 and 10 and by adding Sections 33 and 45 as
11follows:
 
12    (815 ILCS 525/1)
13    Sec. 1. Short title. This Act may be cited as the
14Sweepstakes, Prizes, and Gifts Act.
15(Source: P.A. 92-436, eff. 1-1-02.)
 
16    (815 ILCS 525/10)
17    Sec. 10. Definitions. As used in this Act:
18    "Bona fide product" means any item of real value, which may
19include vouchers or coupons, to be used for or towards the
20purchase of a retail item. "Bona fide product" does not include
21Internet access, a telephone card, a calling card, or a phone
22card.
23    "Catalog seller" means an entity (and its subsidiaries) or

 

 

10000SB0007ham003- 544 -LRB100 06307 SMS 40923 a

1a person at least 50% of whose annual revenues are derived from
2the sale of products sold in connection with the distribution
3of catalogs of at least 24 pages, which contain written
4descriptions or illustrations and sale prices for each item of
5merchandise and which are distributed in more than one state
6with a total annual distribution of at least 250,000.
7    "Electronic product promotion sweepstakes kiosk" means any
8electronic video machine that, upon the insertion of payment,
9is used to purchase a bona fide product from a sponsor and
10offers or awards a prize as a means to promote that sponsor and
11is otherwise consistent with this Act, paragraphs (13) and (15)
12of subsection (b) of Section 28-1 of the Criminal Code of 2012,
13and the Video Gaming Act, and is not capable of connecting
14directly or indirectly to the Internet, either by hardwire or
15wireless connection, or to a set of interconnected networked
16devices.
17    "Instant reveal" means the results of the outcome of a
18prize offer or reward are immediately displayed.
19    "Internet access" means a connection of individual
20computer terminals, computers, mobile devices, and computer
21networks to the Internet, enabling users to access Internet
22services, such as email and websites.
23    "Person" means a corporation, partnership, limited
24liability company, sole proprietorship, or natural person.
25    "Prize" means a gift, award, or other item or service of
26value that is offered or awarded to a participant in a real or

 

 

10000SB0007ham003- 545 -LRB100 06307 SMS 40923 a

1purported contest, competition, sweepstakes, scheme, plan, or
2other selection process that involves an element of chance.
3    "Retail value" of a prize means:
4        (1) a price at which the sponsor can substantiate that
5    a substantial quantity of the item or service offered as a
6    prize has been sold to the public; or
7        (2) if the sponsor is unable to satisfy the requirement
8    in subdivision (1), no more than 3 times the amount the
9    sponsor paid for the prize in a bona fide purchase from an
10    unaffiliated seller.
11    "Sponsor" means a person on whose behalf a promotion is
12conducted to promote or advertise goods, services, or property
13of that person. "Sponsor" includes a person who conducts a
14promotion on behalf of another sponsor.
15    "Sweepstakes" means the promotion of products through a
16written or electronic manner.
17    "Telephone card" or "calling card" or "phone card" means
18any stored-value system capable of being discarded when
19depleted or recharged for reuse and utilized to place a
20telephone call.
21(Source: P.A. 92-436, eff. 1-1-02.)
 
22    (815 ILCS 525/33 new)
23    Sec. 33. Electronic product promotion sweepstakes kiosks.
24    (a) It is unlawful for a person to operate on any premises
25more than 10 electronic product promotion sweepstakes kiosks at

 

 

10000SB0007ham003- 546 -LRB100 06307 SMS 40923 a

1any one time, unless that premises operates as: a racetrack
2licensed under the Illinois Horse Racing Act of 1975; a
3licensed fraternal establishment or licensed veterans
4establishment under the Video Gaming Act; a location under the
5control of a recognized 501(c)(3) charitable organization as
6defined in the Internal Revenue Code; or an airport.
7    (b) No electronic product promotion sweepstakes kiosk
8shall be capable of connecting directly or indirectly to the
9Internet, either by hardwire or wireless connection, or to a
10set of interconnected networked devices, and nothing in this
11amendatory Act of the 100th General Assembly may be construed
12to permit any person to knowingly establish, maintain, or
13operate an Internet site that permits a person to play a game
14of chance or skill for money or other thing of value by means
15of the Internet or to make a wager upon the result of any game,
16contest, political nomination, appointment, or election by
17means of the Internet in violation of item (12) of subsection
18(a) of Section 28-1 of the Criminal Code of 2012.
19    (c) It is unlawful for any person to operate an electronic
20product promotion sweepstakes kiosk where the sale of a product
21is a subterfuge for gambling. A subterfuge shall be the sale of
22Internet access, a telephone card, a calling card, or a phone
23card.
24    (d) Electronic product promotion sweepstakes kiosks shall
25provide the option of an instant reveal of the outcome of any
26prize offer or award.
 

 

 

10000SB0007ham003- 547 -LRB100 06307 SMS 40923 a

1    (815 ILCS 525/45 new)
2    Sec. 45. Electronic product promotion sweepstakes kiosk;
3annual fee. The Department of Revenue is hereby authorized to
4impose an annual fee of not more than $100 for the use of
5operating an electronic product promotion sweepstakes kiosk.
6The Department of Revenue shall share the revenue derived from
7the annual fees with municipalities.
 
8    (30 ILCS 105/5.490 rep.)
9    Section 90-70. The State Finance Act is amended by
10repealing Section 5.490.
 
11    (230 ILCS 5/2.1 rep.)
12    (230 ILCS 5/54 rep.)
13    Section 90-75. The Illinois Horse Racing Act of 1975 is
14amended by repealing Sections 2.1 and 54.
 
15
Article 99. Nonacceleration; Severability; Effective Date

 
16    Section 99-95. No acceleration or delay. Where this Act
17makes changes in a statute that is represented in this Act by
18text that is not yet or no longer in effect (for example, a
19Section represented by multiple versions), the use of that text
20does not accelerate or delay the taking effect of (i) the
21changes made by this Act or (ii) provisions derived from any

 

 

10000SB0007ham003- 548 -LRB100 06307 SMS 40923 a

1other Public Act.
 
2    Section 99-97. Severability. The provisions of this Act are
3severable under Section 1.31 of the Statute on Statutes.
 
4    Section 99-99. Effective date. This Act takes effect upon
5becoming law.".