Rep. Robert Rita

Filed: 5/18/2018

 

 


 

 


 
10000SB3387ham002LRB100 19071 SMS 40200 a

1
AMENDMENT TO SENATE BILL 3387

2    AMENDMENT NO. ______. Amend Senate Bill 3387 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Horse Racing Act of 1975 is
5amended by changing Section 26 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), non-host licensees may carry the host
18track simulcast program and shall accept wagers on all races
19included as part of the simulcast program of horse races
20conducted at race tracks located within North America upon
21which wagering is permitted. For a period of one year after
22August 15, 2014 (the effective date of Public Act 98-968), on
23horse races conducted at race tracks located outside of North
24America, non-host licensees may accept wagers on all races
25included as part of the simulcast program upon which wagering
26is permitted. Beginning August 15, 2015 (one year after the

 

 

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

 

 

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

 

 

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1horsemen association representing the largest number of
2owners, trainers, jockeys, or standardbred drivers who race
3horses at that organization licensee's racing meeting, may
4contract with another person to carry out a system of advance
5deposit wagering. Such consent may not be unreasonably
6withheld. Only with respect to an appeal to the Board that
7consent for an organization licensee that maintains its own
8advance deposit wagering system is being unreasonably
9withheld, the Board shall issue a final order within 30 days
10after initiation of the appeal, and the organization licensee's
11advance deposit wagering system may remain operational during
12that 30-day period. The actions of any organization licensee
13who conducts advance deposit wagering or any person who has a
14contract with an organization licensee to conduct advance
15deposit wagering who conducts advance deposit wagering on or
16after January 1, 2013 and prior to June 7, 2013 (the effective
17date of Public Act 98-18) taken in reliance on the changes made
18to this subsection (g) by Public Act 98-18 are hereby
19validated, provided payment of all applicable pari-mutuel
20taxes are remitted to the Board. All advance deposit wagers
21placed from within Illinois must be placed through a
22Board-approved advance deposit wagering licensee; no other
23entity may accept an advance deposit wager from a person within
24Illinois. All advance deposit wagering is subject to any rules
25adopted by the Board. The Board may adopt rules necessary to
26regulate advance deposit wagering through the use of emergency

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        races, supplemental simulcasts as defined in
2        subparagraphs (1) and (2), and separately pooled races
3        conducted outside of the State of Illinois made at a
4        non-host licensee, 25% to the host track, 25% to the
5        non-host licensee, and 50% to the purses at the host
6        track.
7        (6) Notwithstanding any provision in this Act to the
8    contrary, non-host licensees who derive their licenses
9    from a track located in a county with a population in
10    excess of 230,000 and that borders the Mississippi River
11    may receive supplemental interstate simulcast races at all
12    times subject to Board approval, which shall be withheld
13    only upon a finding that a supplemental interstate
14    simulcast is clearly adverse to the integrity of racing.
15        (7) Effective January 1, 2017, notwithstanding
16    Notwithstanding any provision of this Act to the contrary,
17    after payment of all applicable State and local taxes and
18    interstate commission fees, non-host licensees who derive
19    their licenses from a track located in a county with a
20    population in excess of 230,000 and that borders the
21    Mississippi River shall retain 50% of the retention from
22    interstate simulcast wagers and shall pay 50% to purses at
23    the track from which the non-host licensee derives its
24    license. as follows:
25            (A) Between January 1 and the third Friday in
26        February, inclusive, if no live thoroughbred racing is

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10000SB3387ham002- 20 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 21 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 22 -LRB100 19071 SMS 40200 a

1    at a track where 60 or more days of racing were conducted
2    during the immediately preceding calendar year or where
3    over the 5 immediately preceding calendar years an average
4    of 30 or more days of racing were conducted annually may be
5    issued an inter-track wagering license; (ii) at a track
6    located in a county that is bounded by the Mississippi
7    River, which has a population of less than 150,000
8    according to the 1990 decennial census, and an average of
9    at least 60 days of racing per year between 1985 and 1993
10    may be issued an inter-track wagering license; or (iii) at
11    a track located in Madison County that conducted at least
12    100 days of live racing during the immediately preceding
13    calendar year may be issued an inter-track wagering
14    license, unless a lesser schedule of live racing is the
15    result of (A) weather, unsafe track conditions, or other
16    acts of God; (B) an agreement between the organization
17    licensee and the associations representing the largest
18    number of owners, trainers, jockeys, or standardbred
19    drivers who race horses at that organization licensee's
20    racing meeting; or (C) a finding by the Board of
21    extraordinary circumstances and that it was in the best
22    interest of the public and the sport to conduct fewer than
23    100 days of live racing. Any such person having operating
24    control of the racing facility may receive inter-track
25    wagering location licenses. An eligible race track located
26    in a county that has a population of more than 230,000 and

 

 

10000SB3387ham002- 23 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 24 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 25 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 26 -LRB100 19071 SMS 40200 a

1    consent must be filed with the Board at or prior to the
2    time application is made.
3        (8.2) Inter-track wagering or simulcast wagering shall
4    not be conducted by an inter-track wagering location
5    licensee at any location within 500 feet of an existing
6    church or existing school, nor within 500 feet of the
7    residences of more than 50 registered voters without
8    receiving written permission from a majority of the
9    registered voters at such residences. Such written
10    permission statements shall be filed with the Board. The
11    distance of 500 feet shall be measured to the nearest part
12    of any building used for worship services, education
13    programs, residential purposes, or conducting inter-track
14    wagering by an inter-track wagering location licensee, and
15    not to property boundaries. However, inter-track wagering
16    or simulcast wagering may be conducted at a site within 500
17    feet of a church, school or residences of 50 or more
18    registered voters if such church, school or residences have
19    been erected or established, or such voters have been
20    registered, after the Board issues the original
21    inter-track wagering location license at the site in
22    question. Inter-track wagering location licensees may
23    conduct inter-track wagering and simulcast wagering only
24    in areas that are zoned for commercial or manufacturing
25    purposes or in areas for which a special use has been
26    approved by the local zoning authority. However, no license

 

 

10000SB3387ham002- 27 -LRB100 19071 SMS 40200 a

1    to conduct inter-track wagering and simulcast wagering
2    shall be granted by the Board with respect to any
3    inter-track wagering location within the jurisdiction of
4    any local zoning authority which has, by ordinance or by
5    resolution, prohibited the establishment of an inter-track
6    wagering location within its jurisdiction. However,
7    inter-track wagering and simulcast wagering may be
8    conducted at a site if such ordinance or resolution is
9    enacted after the Board licenses the original inter-track
10    wagering location licensee for the site in question.
11        (9) (Blank).
12        (10) An inter-track wagering licensee or an
13    inter-track wagering location licensee may retain, subject
14    to the payment of the privilege taxes and the purses, an
15    amount not to exceed 17% of all money wagered. Each program
16    of racing conducted by each inter-track wagering licensee
17    or inter-track wagering location licensee shall be
18    considered a separate racing day for the purpose of
19    determining the daily handle and computing the privilege
20    tax or pari-mutuel tax on such daily handle as provided in
21    Section 27.
22        (10.1) Except as provided in subsection (g) of Section
23    27 of this Act, inter-track wagering location licensees
24    shall pay 1% of the pari-mutuel handle at each location to
25    the municipality in which such location is situated and 1%
26    of the pari-mutuel handle at each location to the county in

 

 

10000SB3387ham002- 28 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 29 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 30 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 31 -LRB100 19071 SMS 40200 a

1    wagering location licensees during the calendar year in
2    which this provision is applicable; then (II) the amounts
3    redistributed to each inter-track wagering location
4    licensee as described in subpart (I) shall be further
5    redistributed as provided in subparagraph (B) of paragraph
6    (5) of subsection (g) of this Section 26 provided first,
7    that the shares of those amounts, which are to be
8    redistributed to the host track or to purses at the host
9    track under subparagraph (B) of paragraph (5) of subsection
10    (g) of this Section 26 shall be redistributed based on each
11    host track's pro rata share of the total inter-track
12    wagering and simulcast wagering handle at all host tracks
13    during the calendar year in question, and second, that any
14    amounts redistributed as described in part (I) to an
15    inter-track wagering location licensee that accepts wagers
16    on races conducted by an organization licensee that
17    conducts a race meet in a county with a population in
18    excess of 230,000 and that borders the Mississippi River
19    shall be further redistributed, effective January 1, 2017,
20    as provided in subparagraphs (D) and (E) of paragraph (7)
21    of subsection (g) of this Section 26, with the portion of
22    that further redistribution allocated to purses at that
23    organization licensee to be divided between standardbred
24    purses and thoroughbred purses based on the amounts
25    otherwise allocated to purses at that organization
26    licensee during the calendar year in question; and (iv) 8%

 

 

10000SB3387ham002- 32 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 33 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 34 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 35 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 36 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 37 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 38 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 39 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 40 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 41 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 42 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 43 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 44 -LRB100 19071 SMS 40200 a

1    Fair in Perry County, or to any wagering conducted on those
2    race meetings.
3        (14) An inter-track wagering location license
4    authorized by the Board in 2016 that is owned and operated
5    by a race track in Rock Island County shall be transferred
6    to a commonly owned race track in Cook County on August 12,
7    2016 (the effective date of Public Act 99-757). The
8    licensee shall retain its status in relation to purse
9    distribution under paragraph (11) of this subsection (h)
10    following the transfer to the new entity. The pari-mutuel
11    tax credit under Section 32.1 shall not be applied toward
12    any pari-mutuel tax obligation of the inter-track wagering
13    location licensee of the license that is transferred under
14    this paragraph (14).
15    (i) Notwithstanding the other provisions of this Act, the
16conduct of wagering at wagering facilities is authorized on all
17days, except as limited by subsection (b) of Section 19 of this
18Act.
19(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
20100-201, eff. 8-18-17.)
 
21    Section 10. The Riverboat Gambling Act is amended by
22changing Sections 5, 7, and 7.6 as follows:
 
23    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
24    Sec. 5. Gaming Board.

 

 

10000SB3387ham002- 45 -LRB100 19071 SMS 40200 a

1    (a) (1) There is hereby established the Illinois Gaming
2Board, which shall have the powers and duties specified in this
3Act, and all other powers necessary and proper to fully and
4effectively execute this Act for the purpose of administering,
5regulating, and enforcing the system of riverboat gambling
6established by this Act. Its jurisdiction shall extend under
7this Act to every person, association, corporation,
8partnership and trust involved in riverboat gambling
9operations in the State of Illinois.
10    (2) The Board shall consist of 5 members to be appointed by
11the Governor with the advice and consent of the Senate, one of
12whom shall be designated by the Governor to be chairman. Each
13member shall have a reasonable knowledge of the practice,
14procedure and principles of gambling operations. Each member
15shall either be a resident of Illinois or shall certify that he
16will become a resident of Illinois before taking office. At
17least one member shall be experienced in law enforcement and
18criminal investigation, at least one member shall be a
19certified public accountant experienced in accounting and
20auditing, and at least one member shall be a lawyer licensed to
21practice 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

 

 

10000SB3387ham002- 46 -LRB100 19071 SMS 40200 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

 

 

10000SB3387ham002- 47 -LRB100 19071 SMS 40200 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

 

 

10000SB3387ham002- 48 -LRB100 19071 SMS 40200 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. Any employee violating these prohibitions shall be
25subject to termination of employment.
26    (9) An Administrator shall perform any and all duties that

 

 

10000SB3387ham002- 49 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 50 -LRB100 19071 SMS 40200 a

1    violations of this Act or rules and regulations promulgated
2    hereunder;
3        (3) To promulgate such rules and regulations as in its
4    judgment may be necessary to protect or enhance the
5    credibility and integrity of gambling operations
6    authorized by this Act and the regulatory process
7    hereunder;
8        (4) To provide for the establishment and collection of
9    all license and registration fees and taxes imposed by this
10    Act and the rules and regulations issued pursuant hereto.
11    All such fees and taxes shall be deposited into the State
12    Gaming Fund;
13        (5) To provide for the levy and collection of penalties
14    and fines for the violation of provisions of this Act and
15    the rules and regulations promulgated hereunder. All such
16    fines and penalties shall be deposited into the Education
17    Assistance Fund, created by Public Act 86-0018, of the
18    State of Illinois;
19        (6) To be present through its inspectors and agents any
20    time gambling operations are conducted on any riverboat for
21    the purpose of certifying the revenue thereof, receiving
22    complaints from the public, and conducting such other
23    investigations into the conduct of the gambling games and
24    the maintenance of the equipment as from time to time the
25    Board may deem necessary and proper;
26        (7) To review and rule upon any complaint by a licensee

 

 

10000SB3387ham002- 51 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 52 -LRB100 19071 SMS 40200 a

1    shall have all powers and rights granted to the Board in
2    this Act. The record made at the time of the hearing shall
3    be reviewed by the Board, or a majority thereof, and the
4    findings and decision of the majority of the Board shall
5    constitute the order of the Board in such case;
6        (9) To maintain records which are separate and distinct
7    from the records of any other State board or commission.
8    Such records shall be available for public inspection and
9    shall accurately reflect all Board proceedings;
10        (10) To file a written annual report with the Governor
11    on or before July 1 March 1 each year and such additional
12    reports as the Governor may request. The annual report
13    shall include a statement of receipts and disbursements by
14    the Board, actions taken by the Board, and any additional
15    information and recommendations which the Board may deem
16    valuable or which the Governor may request;
17        (11) (Blank);
18        (12) (Blank);
19        (13) To assume responsibility for administration and
20    enforcement of the Video Gaming Act; and
21        (14) To adopt, by rule, a code of conduct governing
22    Board members and employees that ensure, to the maximum
23    extent possible, that persons subject to this Code avoid
24    situations, relationships, or associations that may
25    represent or lead to a conflict of interest.
26    (c) The Board shall have jurisdiction over and shall

 

 

10000SB3387ham002- 53 -LRB100 19071 SMS 40200 a

1supervise all gambling operations governed by this Act. The
2Board shall have all powers necessary and proper to fully and
3effectively execute the provisions of this Act, including, but
4not limited to, the following:
5        (1) To investigate applicants and determine the
6    eligibility of applicants for licenses and to select among
7    competing applicants the applicants which best serve the
8    interests of the citizens of Illinois.
9        (2) To have jurisdiction and supervision over all
10    riverboat gambling operations in this State and all persons
11    on riverboats where gambling operations are conducted.
12        (3) To promulgate rules and regulations for the purpose
13    of administering the provisions of this Act and to
14    prescribe rules, regulations and conditions under which
15    all riverboat gambling in the State shall be conducted.
16    Such rules and regulations are to provide for the
17    prevention of practices detrimental to the public interest
18    and for the best interests of riverboat gambling, including
19    rules and regulations regarding the inspection of such
20    riverboats and the review of any permits or licenses
21    necessary to operate a riverboat under any laws or
22    regulations applicable to riverboats, and to impose
23    penalties for violations thereof.
24        (4) To enter the office, riverboats, facilities, or
25    other places of business of a licensee, where evidence of
26    the compliance or noncompliance with the provisions of this

 

 

10000SB3387ham002- 54 -LRB100 19071 SMS 40200 a

1    Act is likely to be found.
2        (5) To investigate alleged violations of this Act or
3    the rules of the Board and to take appropriate disciplinary
4    action against a licensee or a holder of an occupational
5    license for a violation, or institute appropriate legal
6    action for enforcement, or both.
7        (6) To adopt standards for the licensing of all persons
8    under this Act, as well as for electronic or mechanical
9    gambling games, and to establish fees for such licenses.
10        (7) To adopt appropriate standards for all riverboats
11    and facilities.
12        (8) To require that the records, including financial or
13    other statements of any licensee under this Act, shall be
14    kept in such manner as prescribed by the Board and that any
15    such licensee involved in the ownership or management of
16    gambling operations submit to the Board an annual balance
17    sheet and profit and loss statement, list of the
18    stockholders or other persons having a 1% or greater
19    beneficial interest in the gambling activities of each
20    licensee, and any other information the Board deems
21    necessary in order to effectively administer this Act and
22    all rules, regulations, orders and final decisions
23    promulgated under this Act.
24        (9) To conduct hearings, issue subpoenas for the
25    attendance of witnesses and subpoenas duces tecum for the
26    production of books, records and other pertinent documents

 

 

10000SB3387ham002- 55 -LRB100 19071 SMS 40200 a

1    in accordance with the Illinois Administrative Procedure
2    Act, and to administer oaths and affirmations to the
3    witnesses, when, in the judgment of the Board, it is
4    necessary to administer or enforce this Act or the Board
5    rules.
6        (10) To prescribe a form to be used by any licensee
7    involved in the ownership or management of gambling
8    operations as an application for employment for their
9    employees.
10        (11) To revoke or suspend licenses, as the Board may
11    see fit and in compliance with applicable laws of the State
12    regarding administrative procedures, and to review
13    applications for the renewal of licenses. The Board may
14    suspend an owners license, without notice or hearing upon a
15    determination that the safety or health of patrons or
16    employees is jeopardized by continuing a riverboat's
17    operation. The suspension may remain in effect until the
18    Board determines that the cause for suspension has been
19    abated. The Board may revoke the owners license upon a
20    determination that the owner has not made satisfactory
21    progress toward abating the hazard.
22        (12) To eject or exclude or authorize the ejection or
23    exclusion of, any person from riverboat gambling
24    facilities where such person is in violation of this Act,
25    rules and regulations thereunder, or final orders of the
26    Board, or where such person's conduct or reputation is such

 

 

10000SB3387ham002- 56 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 57 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 58 -LRB100 19071 SMS 40200 a

1        (20.5) To approve any contract entered into on its
2    behalf.
3        (20.6) To appoint investigators to conduct
4    investigations, searches, seizures, arrests, and other
5    duties imposed under this Act, as deemed necessary by the
6    Board. These investigators have and may exercise all of the
7    rights and powers of peace officers, provided that these
8    powers shall be limited to offenses or violations occurring
9    or committed on a riverboat or dock, as defined in
10    subsections (d) and (f) of Section 4, or as otherwise
11    provided by this Act or any other law.
12        (20.7) To contract with the Department of State Police
13    for the use of trained and qualified State police officers
14    and with the Department of Revenue for the use of trained
15    and qualified Department of Revenue investigators to
16    conduct investigations, searches, seizures, arrests, and
17    other duties imposed under this Act and to exercise all of
18    the rights and powers of peace officers, provided that the
19    powers of Department of Revenue investigators under this
20    subdivision (20.7) shall be limited to offenses or
21    violations occurring or committed on a riverboat or dock,
22    as defined in subsections (d) and (f) of Section 4, or as
23    otherwise provided by this Act or any other law. In the
24    event the Department of State Police or the Department of
25    Revenue is unable to fill contracted police or
26    investigative positions, the Board may appoint

 

 

10000SB3387ham002- 59 -LRB100 19071 SMS 40200 a

1    investigators to fill those positions pursuant to
2    subdivision (20.6).
3        (21) To take any other action as may be reasonable or
4    appropriate to enforce this Act and rules and regulations
5    hereunder.
6    (d) The Board may seek and shall receive the cooperation of
7the Department of State Police in conducting background
8investigations of applicants and in fulfilling its
9responsibilities under this Section. Costs incurred by the
10Department of State Police as a result of such cooperation
11shall be paid by the Board in conformance with the requirements
12of Section 2605-400 of the Department of State Police Law (20
13ILCS 2605/2605-400).
14    (e) The Board must authorize to each investigator and to
15any other employee of the Board exercising the powers of a
16peace officer a distinct badge that, on its face, (i) clearly
17states that the badge is authorized by the Board and (ii)
18contains a unique identifying number. No other badge shall be
19authorized by the Board.
20(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
 
21    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
22    Sec. 7. Owners licenses.
23    (a) The Board shall issue owners licenses to persons, firms
24or corporations which apply for such licenses upon payment to
25the Board of the non-refundable license fee set by the Board,

 

 

10000SB3387ham002- 60 -LRB100 19071 SMS 40200 a

1upon payment of a $25,000 license fee for the first year of
2operation and a $5,000 license fee for each succeeding year and
3upon a determination by the Board that the applicant is
4eligible for an owners license pursuant to this Act and the
5rules of the Board. From the effective date of this amendatory
6Act of the 95th General Assembly until (i) 3 years after the
7effective date of this amendatory Act of the 95th General
8Assembly, (ii) the date any organization licensee begins to
9operate a slot machine or video game of chance under the
10Illinois Horse Racing Act of 1975 or this Act, (iii) the date
11that payments begin under subsection (c-5) of Section 13 of the
12Act, or (iv) the wagering tax imposed under Section 13 of this
13Act is increased by law to reflect a tax rate that is at least
14as stringent or more stringent than the tax rate contained in
15subsection (a-3) of Section 13, whichever occurs first, as a
16condition of licensure and as an alternative source of payment
17for those funds payable under subsection (c-5) of Section 13 of
18the Riverboat Gambling Act, any owners licensee that holds or
19receives its owners license on or after the effective date of
20this amendatory Act of the 94th General Assembly, other than an
21owners licensee operating a riverboat with adjusted gross
22receipts in calendar year 2004 of less than $200,000,000, must
23pay into the Horse Racing Equity Trust Fund, in addition to any
24other payments required under this Act, an amount equal to 3%
25of the adjusted gross receipts received by the owners licensee.
26The payments required under this Section shall be made by the

 

 

10000SB3387ham002- 61 -LRB100 19071 SMS 40200 a

1owners licensee to the State Treasurer no later than 3:00
2o'clock p.m. of the day after the day when the adjusted gross
3receipts were received by the owners licensee. A person, firm
4or corporation is ineligible to receive an owners license if:
5        (1) the person has been convicted of a felony under the
6    laws of this State, any other state, or the United States;
7        (2) the person has been convicted of any violation of
8    Article 28 of the Criminal Code of 1961 or the Criminal
9    Code of 2012, or substantially similar laws of any other
10    jurisdiction;
11        (3) the person has submitted an application for a
12    license under this Act which contains false information;
13        (4) the person is a member of the Board;
14        (5) a person defined in (1), (2), (3) or (4) is an
15    officer, director or managerial employee of the firm or
16    corporation;
17        (6) the firm or corporation employs a person defined in
18    (1), (2), (3) or (4) who participates in the management or
19    operation of gambling operations authorized under this
20    Act;
21        (7) (blank); or
22        (8) a license of the person, firm or corporation issued
23    under this Act, or a license to own or operate gambling
24    facilities in any other jurisdiction, has been revoked.
25    The Board is expressly prohibited from making changes to
26the requirement that licensees make payment into the Horse

 

 

10000SB3387ham002- 62 -LRB100 19071 SMS 40200 a

1Racing Equity Trust Fund without the express authority of the
2Illinois General Assembly and making any other rule to
3implement or interpret this amendatory Act of the 95th General
4Assembly. For the purposes of this paragraph, "rules" is given
5the meaning given to that term in Section 1-70 of the Illinois
6Administrative Procedure Act.
7    (b) In determining whether to grant an owners license to an
8applicant, 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 riverboat gambling;
19        (3) the highest prospective total revenue to be derived
20    by the State from the conduct of riverboat gambling;
21        (4) the extent to which the ownership of the applicant
22    reflects the diversity of the State by including minority
23    persons, women, and persons with a disability and the good
24    faith affirmative action plan of each applicant to recruit,
25    train and upgrade minority persons, women, and persons with
26    a disability in all employment classifications;

 

 

10000SB3387ham002- 63 -LRB100 19071 SMS 40200 a

1        (4.5) the extent to which the ownership of the
2    applicant includes veterans of service in the armed forces
3    of the United States, and the good faith affirmative action
4    plan of each applicant to recruit, train, and upgrade
5    veterans of service in the armed forces of the United
6    States in all employment classifications;
7        (5) the financial ability of the applicant to purchase
8    and maintain adequate liability and casualty insurance;
9        (6) whether the applicant has adequate capitalization
10    to provide and maintain, for the duration of a license, a
11    riverboat;
12        (7) the extent to which the applicant exceeds or meets
13    other standards for the issuance of an owners license which
14    the Board may adopt by rule; and
15        (8) The amount of the applicant's license bid.
16    (c) Each owners license shall specify the place where
17riverboats shall operate and dock.
18    (d) Each applicant shall submit with his application, on
19forms provided by the Board, 2 sets of his fingerprints.
20    (e) The Board may issue up to 10 licenses authorizing the
21holders of such licenses to own riverboats. In the application
22for an owners license, the applicant shall state the dock at
23which the riverboat is based and the water on which the
24riverboat will be located. The Board shall issue 5 licenses to
25become effective not earlier than January 1, 1991. Three of
26such licenses shall authorize riverboat gambling on the

 

 

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1Mississippi River, or, with approval by the municipality in
2which the riverboat was docked on August 7, 2003 and with Board
3approval, be authorized to relocate to a new location, in a
4municipality that (1) borders on the Mississippi River or is
5within 5 miles of the city limits of a municipality that
6borders on the Mississippi River and (2), on August 7, 2003,
7had a riverboat conducting riverboat gambling operations
8pursuant to a license issued under this Act; one of which shall
9authorize riverboat gambling from a home dock in the city of
10East St. Louis. One other license shall authorize riverboat
11gambling on the Illinois River south of Marshall County. The
12Board shall issue one additional license to become effective
13not earlier than March 1, 1992, which shall authorize riverboat
14gambling on the Des Plaines River in Will County. The Board may
15issue 4 additional licenses to become effective not earlier
16than March 1, 1992. In determining the water upon which
17riverboats will operate, the Board shall consider the economic
18benefit which riverboat gambling confers on the State, and
19shall seek to assure that all regions of the State share in the
20economic benefits of riverboat gambling.
21    In granting all licenses, the Board may give favorable
22consideration to economically depressed areas of the State, to
23applicants presenting plans which provide for significant
24economic development over a large geographic area, and to
25applicants who currently operate non-gambling riverboats in
26Illinois. The Board shall review all applications for owners

 

 

10000SB3387ham002- 65 -LRB100 19071 SMS 40200 a

1licenses, and shall inform each applicant of the Board's
2decision. The Board may grant an owners license to an applicant
3that has not submitted the highest license bid, but if it does
4not select the highest bidder, the Board shall issue a written
5decision explaining why another applicant was selected and
6identifying the factors set forth in this Section that favored
7the winning bidder.
8    In addition to any other revocation powers granted to the
9Board under this Act, the Board may revoke the owners license
10of a licensee which fails to begin conducting gambling within
1115 months of receipt of the Board's approval of the application
12if the Board determines that license revocation is in the best
13interests of the State.
14    (f) The first 10 owners licenses issued under this Act
15shall permit the holder to own up to 2 riverboats and equipment
16thereon for a period of 3 years after the effective date of the
17license. Holders of the first 10 owners licenses must pay the
18annual license fee for each of the 3 years during which they
19are authorized to own riverboats.
20    (g) Upon the termination, expiration, or revocation of each
21of the first 10 licenses, which shall be issued for a 3 year
22period, all licenses are renewable annually upon payment of the
23fee and a determination by the Board that the licensee
24continues to meet all of the requirements of this Act and the
25Board's rules. However, for licenses renewed on or after May 1,
261998, renewal shall be for a period of 4 years, unless the

 

 

10000SB3387ham002- 66 -LRB100 19071 SMS 40200 a

1Board sets a shorter period.
2    (h) An owners license shall entitle the licensee to own up
3to 2 riverboats. A licensee shall limit the number of gambling
4participants to 1,200 for any such owners license. A licensee
5may operate both of its riverboats concurrently, provided that
6the total number of gambling participants on both riverboats
7does not exceed 1,200. Riverboats licensed to operate on the
8Mississippi River and the Illinois River south of Marshall
9County shall have an authorized capacity of at least 500
10persons. Any other riverboat licensed under this Act shall have
11an authorized capacity of at least 400 persons.
12    (i) A licensed owner is authorized to apply to the Board
13for and, if approved therefor, to receive all licenses from the
14Board necessary for the operation of a riverboat, including a
15liquor license, a license to prepare and serve food for human
16consumption, and other necessary licenses. All use, occupation
17and excise taxes which apply to the sale of food and beverages
18in this State and all taxes imposed on the sale or use of
19tangible personal property apply to such sales aboard the
20riverboat.
21    (j) The Board may issue or re-issue a license authorizing a
22riverboat to dock in a municipality or approve a relocation
23under Section 11.2 only if, prior to the issuance or
24re-issuance of the license or approval, the governing body of
25the municipality in which the riverboat will dock has by a
26majority vote approved the docking of riverboats in the

 

 

10000SB3387ham002- 67 -LRB100 19071 SMS 40200 a

1municipality. The Board may issue or re-issue a license
2authorizing a riverboat to dock in areas of a county outside
3any municipality or approve a relocation under Section 11.2
4only if, prior to the issuance or re-issuance of the license or
5approval, the governing body of the county has by a majority
6vote approved of the docking of riverboats within such areas.
7(Source: P.A. 100-391, eff. 8-25-17.)
 
8    (230 ILCS 10/7.6)
9    Sec. 7.6. Business enterprise program.
10    (a) For the purposes of this Section, the terms "minority",
11"minority-owned business", "woman", "women-owned business",
12"person with a disability", and "business owned by a person
13with a disability" have the meanings ascribed to them in the
14Business Enterprise for Minorities, Women, and Persons with
15Disabilities Act.
16    (b) The Board shall, by rule, establish goals for the award
17of contracts by each owners licensee to businesses owned by
18minorities, women, and persons with disabilities, expressed as
19percentages of an owners licensee's total dollar amount of
20contracts awarded during each calendar year. Each owners
21licensee must make every effort to meet the goals established
22by the Board pursuant to this Section. When setting the goals
23for the award of contracts, the Board shall not include
24contracts where: (1) any purchasing mandates would be dependent
25upon the availability of minority-owned businesses,

 

 

10000SB3387ham002- 68 -LRB100 19071 SMS 40200 a

1women-owned businesses, and businesses owned by persons with
2disabilities ready, willing, and able with capacity to provide
3quality goods and services to a gaming operation at reasonable
4prices; (2) there are no or a limited number of licensed
5suppliers as defined by this Act for the goods or services
6provided to the licensee; (3) the licensee or its parent
7company owns a company that provides the goods or services; or
8(4) the goods or services are provided to the licensee by a
9publicly traded company.
10    (c) Each owners licensee shall file with the Board an
11annual report of its utilization of minority-owned businesses,
12women-owned businesses, and businesses owned by persons with
13disabilities during the preceding calendar year. The reports
14shall include a self-evaluation of the efforts of the owners
15licensee to meet its goals under this Section.
16    (c-5) The Board shall, by rule, establish goals for the
17award of contracts by each owners licensee to businesses owned
18by veterans of service in the armed forces of the United
19States, expressed as percentages of an owners licensee's total
20dollar amount of contracts awarded during each calendar year.
21When setting the goals for the award of contracts, the Board
22shall not include contracts where: (1) any purchasing mandates
23would be dependent upon the availability of veteran-owned
24businesses ready, willing, and able with capacity to provide
25quality goods and services to a gaming operation at reasonable
26prices; (2) there are no or a limited number of licensed

 

 

10000SB3387ham002- 69 -LRB100 19071 SMS 40200 a

1suppliers as defined in this Act for the goods or services
2provided to the licensee; (3) the licensee or its parent
3company owns a company that provides the goods or services; or
4(4) the goods or services are provided to the licensee by a
5publicly traded company.
6    Each owners licensee shall file with the Board an annual
7report of its utilization of veteran-owned businesses during
8the preceding calendar year. The reports shall include a
9self-evaluation of the efforts of the owners licensee to meet
10its goals under this Section.
11    (d) The owners licensee shall have the right to request a
12waiver from the requirements of this Section. The Board shall
13grant the waiver where the owners licensee demonstrates that
14there has been made a good faith effort to comply with the
15goals for participation by minority-owned businesses,
16women-owned businesses, and businesses owned by persons with
17disabilities, and veteran-owned businesses.
18    (e) If the Board determines that its goals and policies are
19not being met by any owners licensee, then the Board may:
20        (1) adopt remedies for such violations; and
21        (2) recommend that the owners licensee provide
22    additional opportunities for participation by
23    minority-owned businesses, women-owned businesses, and
24    businesses owned by persons with disabilities, and
25    veteran-owned businesses; such recommendations may
26    include, but shall not be limited to:

 

 

10000SB3387ham002- 70 -LRB100 19071 SMS 40200 a

1            (A) assurances of stronger and better focused
2        solicitation efforts to obtain more minority-owned
3        businesses, women-owned businesses, and businesses
4        owned by persons with disabilities, and veteran-owned
5        businesses as potential sources of supply;
6            (B) division of job or project requirements, when
7        economically feasible, into tasks or quantities to
8        permit participation of minority-owned businesses,
9        women-owned businesses, and businesses owned by
10        persons with disabilities, and veteran-owned
11        businesses;
12            (C) elimination of extended experience or
13        capitalization requirements, when programmatically
14        feasible, to permit participation of minority-owned
15        businesses, women-owned businesses, and businesses
16        owned by persons with disabilities, and veteran-owned
17        businesses;
18            (D) identification of specific proposed contracts
19        as particularly attractive or appropriate for
20        participation by minority-owned businesses,
21        women-owned businesses, and businesses owned by
22        persons with disabilities, and veteran-owned
23        businesses, such identification to result from and be
24        coupled with the efforts of items (A) through (C); and
25            (E) implementation of regulations established for
26        the use of the sheltered market process.

 

 

10000SB3387ham002- 71 -LRB100 19071 SMS 40200 a

1    (f) The Board shall file, no later than March 1 of each
2year, an annual report that shall detail the level of
3achievement toward the goals specified in this Section over the
43 most recent fiscal years. The annual report shall include,
5but need not be limited to:
6        (1) a summary detailing expenditures subject to the
7    goals, the actual goals specified, and the goals attained
8    by each owners licensee; and
9        (2) an analysis of the level of overall goal
10    achievement concerning purchases from minority-owned
11    businesses, women-owned businesses, and businesses owned
12    by persons with disabilities, and veteran-owned
13    businesses.
14(Source: P.A. 99-78, eff. 7-20-15; 100-391, eff. 8-25-17.)
 
15    Section 15. The Video Gaming Act is amended by changing
16Sections 45 and 80 as follows:
 
17    (230 ILCS 40/45)
18    Sec. 45. Issuance of license.
19    (a) The burden is upon each applicant to demonstrate his
20suitability for licensure. Each video gaming terminal
21manufacturer, distributor, supplier, operator, handler,
22licensed establishment, licensed truck stop establishment,
23licensed fraternal establishment, and licensed veterans
24establishment shall be licensed by the Board. The Board may

 

 

10000SB3387ham002- 72 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 73 -LRB100 19071 SMS 40200 a

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

 

 

10000SB3387ham002- 74 -LRB100 19071 SMS 40200 a

1    prior activities that pose a threat to the public interests
2    of the State or to the security and integrity of video
3    gaming;
4        (2) create or enhance the dangers of unsuitable,
5    unfair, or illegal practices, methods, and activities in
6    the conduct of video gaming; or
7        (3) present questionable business practices and
8    financial arrangements incidental to the conduct of video
9    gaming activities.
10    (e) Any applicant for any license under this Act has the
11burden of proving his or her qualifications to the satisfaction
12of the Board. The Board may adopt rules to establish additional
13qualifications and requirements to preserve the integrity and
14security of video gaming in this State.
15    (f) A non-refundable application fee shall be paid at the
16time an application for a license is filed with the Board in
17the following amounts:
18        (1) Manufacturer..........................$5,000
19        (2) Distributor...........................$5,000
20        (3) Terminal operator.....................$5,000
21        (4) Supplier..............................$2,500
22        (5) Technician..............................$100
23        (6) Terminal Handler.....................$100 $50
24        (7) Licensed establishment, licensed truck stop
25    establishment, licensed fraternal establishment,
26    or licensed veterans establishment...................$100

 

 

10000SB3387ham002- 75 -LRB100 19071 SMS 40200 a

1    (g) The Board shall establish an annual fee for each
2license not to exceed the following:
3        (1) Manufacturer.........................$10,000
4        (2) Distributor..........................$10,000
5        (3) Terminal operator.....................$5,000
6        (4) Supplier..............................$2,000
7        (5) Technician..............................$100
8        (6) Licensed establishment, licensed truck stop
9    establishment, licensed fraternal establishment,
10    or licensed veterans establishment..............$100
11        (7) Video gaming terminal...................$100
12        (8) Terminal Handler.........................$100 $50
13    (h) A terminal operator and a licensed establishment,
14licensed truck stop establishment, licensed fraternal
15establishment, or licensed veterans establishment shall
16equally split the fees specified in item (7) of subsection (g).
17(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
1898-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
19    (230 ILCS 40/80)
20    Sec. 80. Applicability of Illinois Riverboat Gambling Act.
21The provisions of the Illinois Riverboat Gambling Act, and all
22rules promulgated thereunder, shall apply to the Video Gaming
23Act, except where there is a conflict between the 2 Acts. All
24current supplier licensees under the Riverboat Gambling Act
25shall be entitled to licensure under the Video Gaming Act as

 

 

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1manufacturers, distributors, or suppliers without additional
2Board investigation or approval, except by vote of the Board;
3however, they are required to pay application and annual fees
4under this Act. All provisions of the Uniform Penalty and
5Interest Act shall apply, as far as practicable, to the subject
6matter of this Act to the same extent as if such provisions
7were included herein.
8(Source: P.A. 96-37, eff. 7-13-09.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".