Rep. Chad Hays

Filed: 5/26/2017

 

 


 

 


 
10000SB1804ham003LRB100 09208 MJP 27074 a

1
AMENDMENT TO SENATE BILL 1804

2    AMENDMENT NO. ______. Amend Senate Bill 1804 by replacing
3everything after the enacting clause with the following:
 
4    "Section 3. The Illinois Horse Racing Act of 1975 is
5amended by changing Sections 26, 26.8, 26.9, and 27 as follows:
 
6    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
7    Sec. 26. Wagering.
8    (a) Any licensee may conduct and supervise the pari-mutuel
9system of wagering, as defined in Section 3.12 of this Act, on
10horse races conducted by an Illinois organization licensee or
11conducted at a racetrack located in another state or country
12and televised in Illinois in accordance with subsection (g) of
13Section 26 of this Act. Subject to the prior consent of the
14Board, licensees may supplement any pari-mutuel pool in order
15to guarantee a minimum distribution. Such pari-mutuel method of
16wagering shall not, under any circumstances if conducted under

 

 

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1the provisions of this Act, be held or construed to be
2unlawful, other statutes of this State to the contrary
3notwithstanding. Subject to rules for advance wagering
4promulgated by the Board, any licensee may accept wagers in
5advance of the day of the race wagered upon occurs.
6    (b) No other method of betting, pool making, wagering or
7gambling shall be used or permitted by the licensee. Each
8licensee may retain, subject to the payment of all applicable
9taxes and purses, an amount not to exceed 17% of all money
10wagered under subsection (a) of this Section, except as may
11otherwise be permitted under this Act.
12    (b-5) An individual may place a wager under the pari-mutuel
13system from any licensed location authorized under this Act
14provided that wager is electronically recorded in the manner
15described in Section 3.12 of this Act. Any wager made
16electronically by an individual while physically on the
17premises of a licensee shall be deemed to have been made at the
18premises of that licensee.
19    (c) Until January 1, 2000, the sum held by any licensee for
20payment of outstanding pari-mutuel tickets, if unclaimed prior
21to December 31 of the next year, shall be retained by the
22licensee for payment of such tickets until that date. Within 10
23days thereafter, the balance of such sum remaining unclaimed,
24less any uncashed supplements contributed by such licensee for
25the purpose of guaranteeing minimum distributions of any
26pari-mutuel pool, shall be paid to the Illinois Veterans'

 

 

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

 

 

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1    (f) Notwithstanding the other provisions of this Act, an
2organization licensee may contract with an entity in another
3state or country to permit any legal wagering entity in another
4state or country to accept wagers solely within such other
5state or country on races conducted by the organization
6licensee in this State. Beginning January 1, 2000, these wagers
7shall not be subject to State taxation. Until January 1, 2000,
8when the out-of-State entity conducts a pari-mutuel pool
9separate from the organization licensee, a privilege tax equal
10to 7 1/2% of all monies received by the organization licensee
11from entities in other states or countries pursuant to such
12contracts is imposed on the organization licensee, and such
13privilege tax shall be remitted to the Department of Revenue
14within 48 hours of receipt of the moneys from the simulcast.
15When the out-of-State entity conducts a combined pari-mutuel
16pool with the organization licensee, the tax shall be 10% of
17all monies received by the organization licensee with 25% of
18the receipts from this 10% tax to be distributed to the county
19in which the race was conducted.
20    An organization licensee may permit one or more of its
21races to be utilized for pari-mutuel wagering at one or more
22locations in other states and may transmit audio and visual
23signals of races the organization licensee conducts to one or
24more locations outside the State or country and may also permit
25pari-mutuel pools in other states or countries to be combined
26with its gross or net wagering pools or with wagering pools

 

 

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1established by other states.
2    (g) A host track may accept interstate simulcast wagers on
3horse races conducted in other states or countries and shall
4control the number of signals and types of breeds of racing in
5its simulcast program, subject to the disapproval of the Board.
6The Board may prohibit a simulcast program only if it finds
7that the simulcast program is clearly adverse to the integrity
8of racing. The host track simulcast program shall include the
9signal of live racing of all organization licensees. All
10non-host licensees and advance deposit wagering licensees
11shall carry the signal of and accept wagers on live racing of
12all organization licensees. Advance deposit wagering licensees
13shall not be permitted to accept out-of-state wagers on any
14Illinois signal provided pursuant to this Section without the
15approval and consent of the organization licensee providing the
16signal. For one year after August 15, 2014 (the effective date
17of Public Act 98-968) this amendatory Act of the 98th General
18Assembly, non-host licensees may carry the host track simulcast
19program and shall accept wagers on all races included as part
20of the simulcast program of horse races conducted at race
21tracks located within North America upon which wagering is
22permitted. For a period of one year after August 15, 2014 (the
23effective date of Public Act 98-968) this amendatory Act of the
2498th General Assembly, on horse races conducted at race tracks
25located outside of North America, non-host licensees may accept
26wagers on all races included as part of the simulcast program

 

 

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

 

 

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1state, or the advance deposit wagering licensee's license is in
2revocation proceedings in another state. The organization
3licensee's provision of their live signal to an advance deposit
4wagering licensee under this subsection (g) pertains to wagers
5placed from within Illinois. Advance deposit wagering
6licensees may place advance deposit wagering terminals at
7wagering facilities as a convenience to customers. The advance
8deposit wagering licensee shall not charge or collect any fee
9from purses for the placement of the advance deposit wagering
10terminals. The costs and expenses of the host track and
11non-host licensees associated with interstate simulcast
12wagering, other than the interstate commission fee, shall be
13borne by the host track and all non-host licensees incurring
14these costs. The interstate commission fee shall not exceed 5%
15of Illinois handle on the interstate simulcast race or races
16without prior approval of the Board. The Board shall promulgate
17rules under which it may permit interstate commission fees in
18excess of 5%. The interstate commission fee and other fees
19charged by the sending racetrack, including, but not limited
20to, satellite decoder fees, shall be uniformly applied to the
21host track and all non-host licensees.
22    Notwithstanding any other provision of this Act, through
23December 31, 2021 2018, an organization licensee, with the
24consent of the horsemen association representing the largest
25number of owners, trainers, jockeys, or standardbred drivers
26who race horses at that organization licensee's racing meeting,

 

 

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1may maintain a system whereby advance deposit wagering may take
2place or an organization licensee, with the consent of the
3horsemen association representing the largest number of
4owners, trainers, jockeys, or standardbred drivers who race
5horses at that organization licensee's racing meeting, may
6contract with another person to carry out a system of advance
7deposit wagering. Such consent may not be unreasonably
8withheld. Only with respect to an appeal to the Board that
9consent for an organization licensee that maintains its own
10advance deposit wagering system is being unreasonably
11withheld, the Board shall issue a final order within 30 days
12after initiation of the appeal, and the organization licensee's
13advance deposit wagering system may remain operational during
14that 30-day period. The actions of any organization licensee
15who conducts advance deposit wagering or any person who has a
16contract with an organization licensee to conduct advance
17deposit wagering who conducts advance deposit wagering on or
18after January 1, 2013 and prior to June 7, 2013 (the effective
19date of Public Act 98-18) this amendatory Act of the 98th
20General Assembly taken in reliance on the changes made to this
21subsection (g) by Public Act 98-18 this amendatory Act of the
2298th General Assembly are hereby validated, provided payment of
23all applicable pari-mutuel taxes are remitted to the Board. All
24advance deposit wagers placed from within Illinois must be
25placed through a Board-approved advance deposit wagering
26licensee; no other entity may accept an advance deposit wager

 

 

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1from a person within Illinois. All advance deposit wagering is
2subject to any rules adopted by the Board. The Board may adopt
3rules necessary to regulate advance deposit wagering through
4the use of emergency rulemaking in accordance with Section 5-45
5of the Illinois Administrative Procedure Act. The General
6Assembly finds that the adoption of rules to regulate advance
7deposit wagering is deemed an emergency and necessary for the
8public interest, safety, and welfare. An advance deposit
9wagering licensee may retain all moneys as agreed to by
10contract with an organization licensee. Any moneys retained by
11the organization licensee from advance deposit wagering, not
12including moneys retained by the advance deposit wagering
13licensee, shall be paid 50% to the organization licensee's
14purse account and 50% to the organization licensee. With the
15exception of any organization licensee that is owned by a
16publicly traded company that is incorporated in a state other
17than Illinois and advance deposit wagering licensees under
18contract with such organization licensees, organization
19licensees that maintain advance deposit wagering systems and
20advance deposit wagering licensees that contract with
21organization licensees shall provide sufficiently detailed
22monthly accountings to the horsemen association representing
23the largest number of owners, trainers, jockeys, or
24standardbred drivers who race horses at that organization
25licensee's racing meeting so that the horsemen association, as
26an interested party, can confirm the accuracy of the amounts

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        December 31, when the interstate simulcast occurs
2        between the hours of 6:30 p.m. and 6:30 a.m., the purse
3        share to its standardbred purse account.
4        (7.1) Notwithstanding any other provision of this Act
5    to the contrary, if no standardbred racing is conducted at
6    a racetrack located in Madison County during any calendar
7    year beginning on or after January 1, 2002, all moneys
8    derived by that racetrack from simulcast wagering and
9    inter-track wagering that (1) are to be used for purses and
10    (2) are generated between the hours of 6:30 p.m. and 6:30
11    a.m. during that calendar year shall be paid as follows:
12            (A) If the licensee that conducts horse racing at
13        that racetrack requests from the Board at least as many
14        racing dates as were conducted in calendar year 2000,
15        80% shall be paid to its thoroughbred purse account;
16        and
17            (B) Twenty percent shall be deposited into the
18        Illinois Colt Stakes Purse Distribution Fund and shall
19        be paid to purses for standardbred races for Illinois
20        conceived and foaled horses conducted at any county
21        fairgrounds. The moneys deposited into the Fund
22        pursuant to this subparagraph (B) shall be deposited
23        within 2 weeks after the day they were generated, shall
24        be in addition to and not in lieu of any other moneys
25        paid to standardbred purses under this Act, and shall
26        not be commingled with other moneys paid into that

 

 

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1        Fund. The moneys deposited pursuant to this
2        subparagraph (B) shall be allocated as provided by the
3        Department of Agriculture, with the advice and
4        assistance of the Illinois Standardbred Breeders Fund
5        Advisory Board.
6        (7.2) Notwithstanding any other provision of this Act
7    to the contrary, if no thoroughbred racing is conducted at
8    a racetrack located in Madison County during any calendar
9    year beginning on or after January 1, 2002, all moneys
10    derived by that racetrack from simulcast wagering and
11    inter-track wagering that (1) are to be used for purses and
12    (2) are generated between the hours of 6:30 a.m. and 6:30
13    p.m. during that calendar year shall be deposited as
14    follows:
15            (A) If the licensee that conducts horse racing at
16        that racetrack requests from the Board at least as many
17        racing dates as were conducted in calendar year 2000,
18        80% shall be deposited into its standardbred purse
19        account; and
20            (B) Twenty percent shall be deposited into the
21        Illinois Colt Stakes Purse Distribution Fund. Moneys
22        deposited into the Illinois Colt Stakes Purse
23        Distribution Fund pursuant to this subparagraph (B)
24        shall be paid to Illinois conceived and foaled
25        thoroughbred breeders' programs and to thoroughbred
26        purses for races conducted at any county fairgrounds

 

 

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

 

 

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

 

 

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

 

 

10000SB1804ham003- 20 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 21 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 22 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 23 -LRB100 09208 MJP 27074 a

1    wagering location licenses. An eligible race track located
2    in a county that has a population of more than 230,000 and
3    that is bounded by the Mississippi River may establish up
4    to 9 inter-track wagering locations, and an eligible race
5    track located in Stickney Township in Cook County may
6    establish up to 16 inter-track wagering locations, and an
7    eligible race track located in Palatine Township in Cook
8    County may establish up to 18 inter-track wagering
9    locations. An application for said license shall be filed
10    with the Board prior to such dates as may be fixed by the
11    Board. With an application for an inter-track wagering
12    location license there shall be delivered to the Board a
13    certified check or bank draft payable to the order of the
14    Board for an amount equal to $500. The application shall be
15    on forms prescribed and furnished by the Board. The
16    application shall comply with all other rules, regulations
17    and conditions imposed by the Board in connection
18    therewith.
19        (2) The Board shall examine the applications with
20    respect to their conformity with this Act and the rules and
21    regulations imposed by the Board. If found to be in
22    compliance with the Act and rules and regulations of the
23    Board, the Board may then issue a license to conduct
24    inter-track wagering and simulcast wagering to such
25    applicant. All such applications shall be acted upon by the
26    Board at a meeting to be held on such date as may be fixed

 

 

10000SB1804ham003- 24 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 25 -LRB100 09208 MJP 27074 a

1    wagering location licensee may accept wagers at the track
2    or location where it is licensed, or as otherwise provided
3    under this Act.
4        (8) Inter-track wagering or simulcast wagering shall
5    not be conducted at any track less than 5 miles from a
6    track at which a racing meeting is in progress.
7        (8.1) Inter-track wagering location licensees who
8    derive their licenses from a particular organization
9    licensee shall conduct inter-track wagering and simulcast
10    wagering only at locations that are within 160 miles of
11    that race track where the particular organization licensee
12    is licensed to conduct racing. However, inter-track
13    wagering and simulcast wagering shall not be conducted by
14    those licensees at any location within 5 miles of any race
15    track at which a horse race meeting has been licensed in
16    the current year, unless the person having operating
17    control of such race track has given its written consent to
18    such inter-track wagering location licensees, which
19    consent must be filed with the Board at or prior to the
20    time application is made. In the case of any inter-track
21    wagering location licensee initially licensed after
22    December 31, 2013, inter-track wagering and simulcast
23    wagering shall not be conducted by those inter-track
24    wagering location licensees that are located outside the
25    City of Chicago at any location within 8 miles of any race
26    track at which a horse race meeting has been licensed in

 

 

10000SB1804ham003- 26 -LRB100 09208 MJP 27074 a

1    the current year, unless the person having operating
2    control of such race track has given its written consent to
3    such inter-track wagering location licensees, which
4    consent must be filed with the Board at or prior to the
5    time application is made.
6        (8.2) Inter-track wagering or simulcast wagering shall
7    not be conducted by an inter-track wagering location
8    licensee at any location within 500 feet of an existing
9    church or existing school, nor within 500 feet of the
10    residences of more than 50 registered voters without
11    receiving written permission from a majority of the
12    registered voters at such residences. Such written
13    permission statements shall be filed with the Board. The
14    distance of 500 feet shall be measured to the nearest part
15    of any building used for worship services, education
16    programs, residential purposes, or conducting inter-track
17    wagering by an inter-track wagering location licensee, and
18    not to property boundaries. However, inter-track wagering
19    or simulcast wagering may be conducted at a site within 500
20    feet of a church, school or residences of 50 or more
21    registered voters if such church, school or residences have
22    been erected or established, or such voters have been
23    registered, after the Board issues the original
24    inter-track wagering location license at the site in
25    question. Inter-track wagering location licensees may
26    conduct inter-track wagering and simulcast wagering only

 

 

10000SB1804ham003- 27 -LRB100 09208 MJP 27074 a

1    in areas that are zoned for commercial or manufacturing
2    purposes or in areas for which a special use has been
3    approved by the local zoning authority. However, no license
4    to conduct inter-track wagering and simulcast wagering
5    shall be granted by the Board with respect to any
6    inter-track wagering location within the jurisdiction of
7    any local zoning authority which has, by ordinance or by
8    resolution, prohibited the establishment of an inter-track
9    wagering location within its jurisdiction. However,
10    inter-track wagering and simulcast wagering may be
11    conducted at a site if such ordinance or resolution is
12    enacted after the Board licenses the original inter-track
13    wagering location licensee for the site in question.
14        (9) (Blank).
15        (10) An inter-track wagering licensee or an
16    inter-track wagering location licensee may retain, subject
17    to the payment of the privilege taxes and the purses, an
18    amount not to exceed 17% of all money wagered. Each program
19    of racing conducted by each inter-track wagering licensee
20    or inter-track wagering location licensee shall be
21    considered a separate racing day for the purpose of
22    determining the daily handle and computing the privilege
23    tax or pari-mutuel tax on such daily handle as provided in
24    Section 27.
25        (10.1) Except as provided in subsection (g) of Section
26    27 of this Act, inter-track wagering location licensees

 

 

10000SB1804ham003- 28 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 29 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 30 -LRB100 09208 MJP 27074 a

1        (B) From the sums permitted to be retained pursuant to
2    this Act each inter-track wagering location licensee shall
3    pay (i) the privilege or pari-mutuel tax to the State; (ii)
4    4.75% of the pari-mutuel handle on inter-track intertrack
5    wagering at such location on races as purses, except that
6    an inter-track intertrack wagering location licensee that
7    derives its license from a track located in a county with a
8    population in excess of 230,000 and that borders the
9    Mississippi River shall retain all purse moneys for its own
10    purse account consistent with distribution set forth in
11    this subsection (h), and inter-track intertrack wagering
12    location licensees that accept wagers on races conducted by
13    an organization licensee located in a county with a
14    population in excess of 230,000 and that borders the
15    Mississippi River shall distribute all purse moneys to
16    purses at the operating host track; (iii) until January 1,
17    2000, except as provided in subsection (g) of Section 27 of
18    this Act, 1% of the pari-mutuel handle wagered on
19    inter-track wagering and simulcast wagering at each
20    inter-track wagering location licensee facility to the
21    Horse Racing Tax Allocation Fund, provided that, to the
22    extent the total amount collected and distributed to the
23    Horse Racing Tax Allocation Fund under this subsection (h)
24    during any calendar year exceeds the amount collected and
25    distributed to the Horse Racing Tax Allocation Fund during
26    calendar year 1994, that excess amount shall be

 

 

10000SB1804ham003- 31 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 32 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 33 -LRB100 09208 MJP 27074 a

1    the first 12 months the licensee is in operation, 5.25% of
2    the pari-mutuel handle wagered at the location on races;
3    during the second 12 months, 5.25%; during the third 12
4    months, 5.75%; during the fourth 12 months, 6.25%; and
5    during the fifth 12 months and thereafter, 6.75%. The
6    following amounts shall be retained by the licensee to
7    satisfy all costs and expenses of conducting its wagering:
8    during the first 12 months the licensee is in operation,
9    8.25% of the pari-mutuel handle wagered at the location;
10    during the second 12 months, 8.25%; during the third 12
11    months, 7.75%; during the fourth 12 months, 7.25%; and
12    during the fifth 12 months and thereafter, 6.75%. For
13    additional inter-track intertrack wagering location
14    licensees authorized under Public Act 89-16 this
15    amendatory Act of 1995, purses for the first 12 months the
16    licensee is in operation shall be 5.75% of the pari-mutuel
17    wagered at the location, purses for the second 12 months
18    the licensee is in operation shall be 6.25%, and purses
19    thereafter shall be 6.75%. For additional inter-track
20    intertrack location licensees authorized under Public Act
21    89-16 this amendatory Act of 1995, the licensee shall be
22    allowed to retain to satisfy all costs and expenses: 7.75%
23    of the pari-mutuel handle wagered at the location during
24    its first 12 months of operation, 7.25% during its second
25    12 months of operation, and 6.75% thereafter.
26        (C) There is hereby created the Horse Racing Tax

 

 

10000SB1804ham003- 34 -LRB100 09208 MJP 27074 a

1    Allocation Fund which shall remain in existence until
2    December 31, 1999. Moneys remaining in the Fund after
3    December 31, 1999 shall be paid into the General Revenue
4    Fund. Until January 1, 2000, all monies paid into the Horse
5    Racing Tax Allocation Fund pursuant to this paragraph (11)
6    by inter-track wagering location licensees located in park
7    districts of 500,000 population or less, or in a
8    municipality that is not included within any park district
9    but is included within a conservation district and is the
10    county seat of a county that (i) is contiguous to the state
11    of Indiana and (ii) has a 1990 population of 88,257
12    according to the United States Bureau of the Census, and
13    operating on May 1, 1994 shall be allocated by
14    appropriation as follows:
15            Two-sevenths to the Department of Agriculture.
16        Fifty percent of this two-sevenths shall be used to
17        promote the Illinois horse racing and breeding
18        industry, and shall be distributed by the Department of
19        Agriculture upon the advice of a 9-member committee
20        appointed by the Governor consisting of the following
21        members: the Director of Agriculture, who shall serve
22        as chairman; 2 representatives of organization
23        licensees conducting thoroughbred race meetings in
24        this State, recommended by those licensees; 2
25        representatives of organization licensees conducting
26        standardbred race meetings in this State, recommended

 

 

10000SB1804ham003- 35 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 36 -LRB100 09208 MJP 27074 a

1        that do not have a park district of 500,000 population
2        or less for museum purposes (if an inter-track wagering
3        location licensee is located in such a park district)
4        or to conservation districts for museum purposes (if an
5        inter-track wagering location licensee is located in a
6        municipality that is not included within any park
7        district but is included within a conservation
8        district and is the county seat of a county that (i) is
9        contiguous to the state of Indiana and (ii) has a 1990
10        population of 88,257 according to the United States
11        Bureau of the Census, except that if the conservation
12        district does not maintain a museum, the monies shall
13        be allocated equally between the county and the
14        municipality in which the inter-track wagering
15        location licensee is located for general purposes) or
16        to a municipal recreation board for park purposes (if
17        an inter-track wagering location licensee is located
18        in a municipality that is not included within any park
19        district and park maintenance is the function of the
20        municipal recreation board and the municipality has a
21        1990 population of 9,302 according to the United States
22        Bureau of the Census); provided that the monies are
23        distributed to each park district or conservation
24        district or municipality that does not have a park
25        district in an amount equal to four-sevenths of the
26        amount collected by each inter-track wagering location

 

 

10000SB1804ham003- 37 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 38 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 39 -LRB100 09208 MJP 27074 a

1        commencing January 1 of each even-numbered year. If a
2        representative of any of the above-named entities has
3        not been recommended by January 1 of any even-numbered
4        year, the Governor shall appoint a committee member to
5        fill that position. Committee members shall receive no
6        compensation for their services as members but shall be
7        reimbursed for all actual and necessary expenses and
8        disbursements incurred in the performance of their
9        official duties. The remaining 50% of this
10        two-sevenths shall be distributed to county fairs for
11        premiums and rehabilitation as set forth in the
12        Agricultural Fair Act;
13            Four-sevenths to museums and aquariums located in
14        park districts of over 500,000 population; provided
15        that the monies are distributed in accordance with the
16        previous year's distribution of the maintenance tax
17        for such museums and aquariums as provided in Section 2
18        of the Park District Aquarium and Museum Act; and
19            One-seventh to the Agricultural Premium Fund to be
20        used for distribution to agricultural home economics
21        extension councils in accordance with "An Act in
22        relation to additional support and finances for the
23        Agricultural and Home Economic Extension Councils in
24        the several counties of this State and making an
25        appropriation therefor", approved July 24, 1967. This
26        subparagraph (C) shall be inoperative and of no force

 

 

10000SB1804ham003- 40 -LRB100 09208 MJP 27074 a

1        and effect on and after January 1, 2000.
2            (D) Except as provided in paragraph (11) of this
3        subsection (h), with respect to purse allocation from
4        inter-track intertrack wagering, the monies so
5        retained shall be divided as follows:
6                (i) If the inter-track wagering licensee,
7            except an inter-track intertrack wagering licensee
8            that derives its license from an organization
9            licensee located in a county with a population in
10            excess of 230,000 and bounded by the Mississippi
11            River, is not conducting its own race meeting
12            during the same dates, then the entire purse
13            allocation shall be to purses at the track where
14            the races wagered on are being conducted.
15                (ii) If the inter-track wagering licensee,
16            except an inter-track intertrack wagering licensee
17            that derives its license from an organization
18            licensee located in a county with a population in
19            excess of 230,000 and bounded by the Mississippi
20            River, is also conducting its own race meeting
21            during the same dates, then the purse allocation
22            shall be as follows: 50% to purses at the track
23            where the races wagered on are being conducted; 50%
24            to purses at the track where the inter-track
25            wagering licensee is accepting such wagers.
26                (iii) If the inter-track wagering is being

 

 

10000SB1804ham003- 41 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 42 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 43 -LRB100 09208 MJP 27074 a

1        duties.
2            (G) The Board is vested with the power to impose
3        civil penalties of up to $5,000 against individuals and
4        up to $10,000 against licensees for each violation of
5        any provision of this Act relating to the conduct of
6        this wagering, any rules adopted by the Board, any
7        order of the Board or any other action which in the
8        Board's discretion, is a detriment or impediment to
9        such wagering.
10        (13) The Department of Agriculture may enter into
11    agreements with licensees authorizing such licensees to
12    conduct inter-track wagering on races to be held at the
13    licensed race meetings conducted by the Department of
14    Agriculture. Such agreement shall specify the races of the
15    Department of Agriculture's licensed race meeting upon
16    which the licensees will conduct wagering. In the event
17    that a licensee conducts inter-track pari-mutuel wagering
18    on races from the Illinois State Fair or DuQuoin State Fair
19    which are in addition to the licensee's previously approved
20    racing program, those races shall be considered a separate
21    racing day for the purpose of determining the daily handle
22    and computing the privilege or pari-mutuel tax on that
23    daily handle as provided in Sections 27 and 27.1. Such
24    agreements shall be approved by the Board before such
25    wagering may be conducted. In determining whether to grant
26    approval, the Board shall give due consideration to the

 

 

10000SB1804ham003- 44 -LRB100 09208 MJP 27074 a

1    best interests of the public and of horse racing. The
2    provisions of paragraphs (1), (8), (8.1), and (8.2) of
3    subsection (h) of this Section which are not specified in
4    this paragraph (13) shall not apply to licensed race
5    meetings conducted by the Department of Agriculture at the
6    Illinois State Fair in Sangamon County or the DuQuoin State
7    Fair in Perry County, or to any wagering conducted on those
8    race meetings.
9        (14) An inter-track wagering location license
10    authorized by the Board in 2016 that is owned and operated
11    by a race track in Rock Island County shall be transferred
12    to a commonly owned race track in Cook County on August 12,
13    2016 (the effective date of Public Act 99-757) this
14    amendatory Act of the 99th General Assembly. The licensee
15    shall retain its status in relation to purse distribution
16    under paragraph (11) of this subsection (h) following the
17    transfer to the new entity. The pari-mutuel tax credit
18    under Section 32.1 shall not be applied toward any
19    pari-mutuel tax obligation of the inter-track wagering
20    location licensee of the license that is transferred under
21    this paragraph (14).
22    (i) Notwithstanding the other provisions of this Act, the
23conduct of wagering at wagering facilities is authorized on all
24days, except as limited by subsection (b) of Section 19 of this
25Act.
26(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968,

 

 

10000SB1804ham003- 45 -LRB100 09208 MJP 27074 a

1eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
2revised 9-14-16.)
 
3    (230 ILCS 5/26.8)
4    Sec. 26.8. Beginning on February 1, 2014 and through
5December 31, 2021 2018, each wagering licensee may impose a
6surcharge of up to 0.5% on winning wagers and winnings from
7wagers. The surcharge shall be deducted from winnings prior to
8payout. All amounts collected from the imposition of this
9surcharge shall be evenly distributed to the organization
10licensee and the purse account of the organization licensee
11with which the licensee is affiliated. The amounts distributed
12under this Section shall be in addition to the amounts paid
13pursuant to paragraph (10) of subsection (h) of Section 26,
14Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
15(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
16    (230 ILCS 5/26.9)
17    Sec. 26.9. Beginning on February 1, 2014 and through
18December 31, 2021 2018, in addition to the surcharge imposed in
19Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
20licensee shall impose a surcharge of 0.2% on winning wagers and
21winnings from wagers. The surcharge shall be deducted from
22winnings prior to payout. All amounts collected from the
23surcharges imposed under this Section shall be remitted to the
24Board. From amounts collected under this Section, the Board

 

 

10000SB1804ham003- 46 -LRB100 09208 MJP 27074 a

1shall deposit an amount not to exceed $100,000 annually into
2the Quarter Horse Purse Fund and all remaining amounts into the
3Horse Racing Fund.
4(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
5    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
6    Sec. 27. (a) In addition to the organization license fee
7provided by this Act, until January 1, 2000, a graduated
8privilege tax is hereby imposed for conducting the pari-mutuel
9system of wagering permitted under this Act. Until January 1,
102000, except as provided in subsection (g) of Section 27 of
11this Act, all of the breakage of each racing day held by any
12licensee in the State shall be paid to the State. Until January
131, 2000, such daily graduated privilege tax shall be paid by
14the licensee from the amount permitted to be retained under
15this Act. Until January 1, 2000, each day's graduated privilege
16tax, breakage, and Horse Racing Tax Allocation funds shall be
17remitted to the Department of Revenue within 48 hours after the
18close of the racing day upon which it is assessed or within
19such other time as the Board prescribes. The privilege tax
20hereby imposed, until January 1, 2000, shall be a flat tax at
21the rate of 2% of the daily pari-mutuel handle except as
22provided in Section 27.1.
23    In addition, every organization licensee, except as
24provided in Section 27.1 of this Act, which conducts multiple
25wagering shall pay, until January 1, 2000, as a privilege tax

 

 

10000SB1804ham003- 47 -LRB100 09208 MJP 27074 a

1on multiple wagers an amount equal to 1.25% of all moneys
2wagered each day on such multiple wagers, plus an additional
3amount equal to 3.5% of the amount wagered each day on any
4other multiple wager which involves a single betting interest
5on 3 or more horses. The licensee shall remit the amount of
6such taxes to the Department of Revenue within 48 hours after
7the close of the racing day on which it is assessed or within
8such other time as the Board prescribes.
9    This subsection (a) shall be inoperative and of no force
10and effect on and after January 1, 2000.
11    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
12at the rate of 1.5% of the daily pari-mutuel handle is imposed
13at all pari-mutuel wagering facilities and on advance deposit
14wagering from a location other than a wagering facility, except
15as otherwise provided for in this subsection (a-5). In addition
16to the pari-mutuel tax imposed on advance deposit wagering
17pursuant to this subsection (a-5), beginning on August 24, 2012
18(the effective date of Public Act 97-1060) and through December
1931, 2021 2018, an additional pari-mutuel tax at the rate of
200.25% shall be imposed on advance deposit wagering. Until
21August 25, 2012, the additional 0.25% pari-mutuel tax imposed
22on advance deposit wagering by Public Act 96-972 shall be
23deposited into the Quarter Horse Purse Fund, which shall be
24created as a non-appropriated trust fund administered by the
25Board for grants to thoroughbred organization licensees for
26payment of purses for quarter horse races conducted by the

 

 

10000SB1804ham003- 48 -LRB100 09208 MJP 27074 a

1organization licensee. Beginning on August 26, 2012, the
2additional 0.25% pari-mutuel tax imposed on advance deposit
3wagering shall be deposited into the Standardbred Purse Fund,
4which shall be created as a non-appropriated trust fund
5administered by the Board, for grants to the standardbred
6organization licensees for payment of purses for standardbred
7horse races conducted by the organization licensee.
8Thoroughbred organization licensees may petition the Board to
9conduct quarter horse racing and receive purse grants from the
10Quarter Horse Purse Fund. The Board shall have complete
11discretion in distributing the Quarter Horse Purse Fund to the
12petitioning organization licensees. Beginning on July 26, 2010
13(the effective date of Public Act 96-1287), a pari-mutuel tax
14at the rate of 0.75% of the daily pari-mutuel handle is imposed
15at a pari-mutuel facility whose license is derived from a track
16located in a county that borders the Mississippi River and
17conducted live racing in the previous year. The pari-mutuel tax
18imposed by this subsection (a-5) shall be remitted to the
19Department of Revenue within 48 hours after the close of the
20racing day upon which it is assessed or within such other time
21as the Board prescribes.
22    (b) On or before December 31, 1999, in the event that any
23organization licensee conducts 2 separate programs of races on
24any day, each such program shall be considered a separate
25racing day for purposes of determining the daily handle and
26computing the privilege tax on such daily handle as provided in

 

 

10000SB1804ham003- 49 -LRB100 09208 MJP 27074 a

1subsection (a) of this Section.
2    (c) Licensees shall at all times keep accurate books and
3records of all monies wagered on each day of a race meeting and
4of the taxes paid to the Department of Revenue under the
5provisions of this Section. The Board or its duly authorized
6representative or representatives shall at all reasonable
7times have access to such records for the purpose of examining
8and checking the same and ascertaining whether the proper
9amount of taxes is being paid as provided. The Board shall
10require verified reports and a statement of the total of all
11monies wagered daily at each wagering facility upon which the
12taxes are assessed and may prescribe forms upon which such
13reports and statement shall be made.
14    (d) Any licensee failing or refusing to pay the amount of
15any tax due under this Section shall be guilty of a business
16offense and upon conviction shall be fined not more than $5,000
17in addition to the amount found due as tax under this Section.
18Each day's violation shall constitute a separate offense. All
19fines paid into Court by a licensee hereunder shall be
20transmitted and paid over by the Clerk of the Court to the
21Board.
22    (e) No other license fee, privilege tax, excise tax, or
23racing fee, except as provided in this Act, shall be assessed
24or collected from any such licensee by the State.
25    (f) No other license fee, privilege tax, excise tax or
26racing fee shall be assessed or collected from any such

 

 

10000SB1804ham003- 50 -LRB100 09208 MJP 27074 a

1licensee by units of local government except as provided in
2paragraph 10.1 of subsection (h) and subsection (f) of Section
326 of this Act. However, any municipality that has a Board
4licensed horse race meeting at a race track wholly within its
5corporate boundaries or a township that has a Board licensed
6horse race meeting at a race track wholly within the
7unincorporated area of the township may charge a local
8amusement tax not to exceed 10 per admission to such horse
9race meeting by the enactment of an ordinance. However, any
10municipality or county that has a Board licensed inter-track
11wagering location facility wholly within its corporate
12boundaries may each impose an admission fee not to exceed $1.00
13per admission to such inter-track wagering location facility,
14so that a total of not more than $2.00 per admission may be
15imposed. Except as provided in subparagraph (g) of Section 27
16of this Act, the inter-track wagering location licensee shall
17collect any and all such fees and within 48 hours remit the
18fees to the Board, which shall, pursuant to rule, cause the
19fees to be distributed to the county or municipality.
20    (g) Notwithstanding any provision in this Act to the
21contrary, if in any calendar year the total taxes and fees
22required to be collected from licensees and distributed under
23this Act to all State and local governmental authorities
24exceeds the amount of such taxes and fees distributed to each
25State and local governmental authority to which each State and
26local governmental authority was entitled under this Act for

 

 

10000SB1804ham003- 51 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 52 -LRB100 09208 MJP 27074 a

1    Breeders Funds Advisory Board for the purposes listed in
2    subsection (g) of Section 31 of this Act, before the amount
3    allocated to standardbred purses under item (i) is
4    allocated to standardbred organization licensees in the
5    succeeding allocation year.
6    To the extent the excess amount of taxes and fees to be
7collected and distributed to State and local governmental
8authorities exceeds $11 million, that excess amount shall be
9collected and distributed to State and local authorities as
10provided for under this Act.
11(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
12eff. 8-12-16.)
 
13    Section 5. The Video Gaming Act is amended by changing
14Section 45 and by adding Section 78.5 as follows:
 
15    (230 ILCS 40/45)
16    Sec. 45. Issuance of license.
17    (a) The burden is upon each applicant to demonstrate his
18suitability for licensure. Each video gaming terminal
19manufacturer, distributor, supplier, operator, handler,
20licensed establishment, licensed truck stop establishment,
21licensed fraternal establishment, and licensed veterans
22establishment shall be licensed by the Board. The Board may
23issue or deny a license under this Act to any person pursuant
24to the same criteria set forth in Section 9 of the Riverboat

 

 

10000SB1804ham003- 53 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 54 -LRB100 09208 MJP 27074 a

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

 

 

10000SB1804ham003- 55 -LRB100 09208 MJP 27074 a

1    gaming;
2        (2) create or enhance the dangers of unsuitable,
3    unfair, or illegal practices, methods, and activities in
4    the conduct of video gaming; or
5        (3) present questionable business practices and
6    financial arrangements incidental to the conduct of video
7    gaming activities.
8    (e) Any applicant for any license under this Act has the
9burden of proving his or her qualifications to the satisfaction
10of the Board. The Board may adopt rules to establish additional
11qualifications and requirements to preserve the integrity and
12security of video gaming in this State.
13    (f) A non-refundable application fee shall be paid at the
14time an application for a license is filed with the Board in
15the following amounts:
16        (1) Manufacturer..........................$5,000
17        (2) Distributor...........................$5,000
18        (3) Terminal operator.....................$5,000
19        (4) Supplier..............................$2,500
20        (5) Technician..............................$100
21        (6) Terminal Handler.....................$100 $50
22        (7) Licensed establishment, licensed truck stop
23    establishment, licensed fraternal establishment,
24    or licensed veterans establishment...................$250
25    (g) The Board shall establish an annual fee for each
26license not to exceed the following:

 

 

10000SB1804ham003- 56 -LRB100 09208 MJP 27074 a

1        (1) Manufacturer.........................$10,000
2        (2) Distributor..........................$10,000
3        (3) Terminal operator.....................$5,000
4        (4) Supplier..............................$2,000
5        (5) Technician..............................$100
6        (6) Licensed establishment, licensed truck stop
7    establishment, licensed fraternal establishment,
8    or licensed veterans establishment..............$100
9        (7) Video gaming terminal...................$100
10        (8) Terminal Handler.........................$100 $50
11    (h) A terminal operator and a licensed establishment,
12licensed truck stop establishment, licensed fraternal
13establishment, or licensed veterans establishment shall
14equally split the fees specified in item (7) of subsection (g).
15(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
1698-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
17    (230 ILCS 40/78.5 new)
18    Sec. 78.5. Civil penalties. Notwithstanding paragraph (15)
19of subsection (c) of Section 5 of the Riverboat Gambling Act,
20monetary civil penalties under this Act shall not exceed
21$25,000 for individuals and $50,000 for licensees per
22violation.".