103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0084

 

Introduced 1/20/2023, by Sen. Win Stoller

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 405/31 new
20 ILCS 2505/2505-810 new
230 ILCS 5/27.3 new
230 ILCS 5/34.4 new
230 ILCS 10/13.06 new
230 ILCS 10/13.3 new

    Amends the Illinois Horse Racing Act of 1975 and the Illinois Gambling Act. Provides that from winnings required to be reported to the Internal Revenue Service and subject to withholding on Form W-2G, an organization licensee, an advance deposit wagering licensee, an owners licensee, or a licensee that operates one or more facilities or gaming locations at which lawful gambling is authorized shall withhold up to the full amount of winnings necessary to pay the winner's delinquent claims due and payable to the State as determined under the Illinois State Collection Act of 1986. Provides that for withholding of winnings, the licensee shall be entitled to an administrative fee not to exceed the lesser of 4% of the total amount of cash winnings paid to the gambling winner or $150. Provides that the total amount withheld from the cash payout shall not exceed the total cash winnings claimed by the obligor. Provides that these provisions shall be operative on and after the date that rules are adopted by the Department of Revenue and the State Comptroller. Provides that the licensee shall post signs with a statement regarding withholding of delinquent claims due and payable to the State. Provides that the text of these signs shall be determined by rule by the Department of Revenue. Makes corresponding changes in the State Comptroller Act and the Department of Revenue Law of the Civil Administrative Code of Illinois.


LRB103 02756 AMQ 47762 b

 

 

A BILL FOR

 

SB0084LRB103 02756 AMQ 47762 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Comptroller Act is amended by adding
5Section 31 as follows:
 
6    (15 ILCS 405/31 new)
7    Sec. 31. Certification of information to the State gaming
8licensees.
9    (a) For purposes of this Section, "State gaming licensee"
10means an organization licensee or advance deposit wagering
11licensee licensed under the Illinois Horse Racing Act of 1975,
12an owners licensee licensed under the Illinois Gambling Act,
13or a licensee that operates, under any law of this State, one
14or more facilities or gaming locations at which lawful
15gambling is authorized and licensed as provided in the
16Illinois Gambling Act.
17    (b) The Comptroller may provide, by rule, for
18certification to any State gaming licensee of delinquent
19claims due and payable to the State under the Illinois State
20Collection Act of 1986. The State gaming licensee shall have
21the ability to withhold from winnings required to be reported
22to the Internal Revenue Service on Form W-2G, up to the full
23amount of winnings necessary to pay the winner's delinquent

 

 

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1claims due and payable to the State. The rule shall provide for
2notice to and an opportunity to be heard by the individual
3affected and any final administrative decision rendered by the
4Comptroller shall be reviewed only under and in accordance
5with the Administrative Review Law.
6    (c) For withholding of winnings, the State gaming licensee
7shall be entitled to an administrative fee not to exceed the
8lesser of 4% of the total amount of cash winnings paid to the
9gambling winner or $150.
10    (d) The total amount withheld from the cash payout,
11including the administrative fee, shall not exceed the total
12cash winnings claimed by the obligor. If the cash payout
13claimed is greater than the amount sufficient to satisfy the
14obligor's delinquent child support payments, the State gaming
15licensee shall pay the obligor the remaining balance of the
16payout, less the administrative fee authorized by subsection
17(c), at the time it is claimed.
18    (e) A State gaming licensee who in good faith complies
19with the requirements of this Section shall not be liable to
20the gaming winner or any other individual or entity.
 
21    Section 10. The Department of Revenue Law of the Civil
22Administrative Code of Illinois is amended by adding Section
232505-810 as follows:
 
24    (20 ILCS 2505/2505-810 new)

 

 

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1    Sec. 2505-810. Debt collection of delinquent claims due
2and payable to the State.
3    (a) For purposes of this Section, "State gaming licensee"
4means an organization licensee or advance deposit wagering
5licensee licensed under the Illinois Horse Racing Act of 1975,
6an owners licensee licensed under the Illinois Gambling Act,
7or a licensee that operates, under any law of this State, one
8or more facilities or gaming locations at which lawful
9gambling is authorized and licensed as provided in the
10Illinois Gambling Act.
11    (b) The Department shall provide debt collection duties as
12determined under Section 10 of the Illinois State Collection
13Act of 1986. The state gaming licensee shall pay to the
14Department delinquent claims due and payable to the State.
15    (c) The Department may provide, by rule, for the
16collection of debt made under this Section by the State gaming
17licensee.
 
18    Section 15. The Illinois Horse Racing Act of 1975 is
19amended by adding Sections 27.3 and 34.4 as follows:
 
20    (230 ILCS 5/27.3 new)
21    Sec. 27.3. Withholding of delinquent claims due and
22payable to the State.
23    (a) From winnings required to be reported to the Internal
24Revenue Service and subject to withholding on Form W-2G,

 

 

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1organization licensees and advance deposit wagering licensees
2licensed under this Act shall withhold up to the full amount of
3winnings necessary to pay the winner's delinquent claims due
4and payable to the State as determined under the Illinois
5State Collection Act of 1986, Section 2505-810 of the Civil
6Administrative Code of Illinois (Department of Revenue Law),
7and Section 31 of the State Comptroller Act. Amounts withheld
8shall be paid to the Department of Revenue by the organization
9licensee or the advance deposit wagering licensee, as
10applicable.
11    (b) For withholding of winnings, the organization licensee
12or advance deposit wagering licensee shall be entitled to an
13administrative fee not to exceed the lesser of 4% of the total
14amount of cash winnings paid to the gambling winner or $150.
15    (c) The total amount withheld from the cash payout,
16including the administrative fee, shall not exceed the total
17cash winnings claimed by the obligor. If the cash payout
18claimed is greater than the amount sufficient to satisfy the
19obligor's delinquent child support payments, the organization
20licensee or advance deposit wagering licensee shall pay the
21obligor the remaining balance of the payout, less the
22administrative fee authorized by subsection (b), at the time
23it is claimed.
24    (d) An organization licensee or an advance deposit
25wagering licensee that in good faith complies with the
26requirements of this Section shall not be liable to the gaming

 

 

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1winner or any other individual or entity.
2    (e) For an organization licensee under this Act, an agent
3of the Board (such as an employee of the Board) shall be
4responsible for notifying the person identified as having
5delinquent claims due and payable to the State that the
6organization licensee is required by law to withhold all or a
7portion of his or her winnings. This notification must be
8provided at the time the winnings are withheld.
9    (f) The provisions of this Section shall be operative on
10and after the date that rules are adopted by the Department of
11Revenue pursuant to Section 2505-810 of the Civil
12Administrative Code of Illinois (Department of Revenue Law)
13and the State Comptroller pursuant to Section 31 of the State
14Comptroller Act.
15    (g) The delinquent claims due and payable to the State
16required to be withheld under this Section and the
17administrative fee under subsection (b) have priority over any
18secured or unsecured claim on cash winnings, except claims for
19federal or State taxes that are required to be withheld under
20federal or State law and claims of delinquent child support.
 
21    (230 ILCS 5/34.4 new)
22    Sec. 34.4. Withholding of delinquent claims due and
23payable to the State; signs; statement.
24    (a) Each organization licensee shall post signs with a
25statement regarding withholding of delinquent claims due and

 

 

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1payable to the State, the text of which shall be determined by
2rule by the Department of Revenue, at the following locations
3in each race track at which horse race meetings are conducted
4by the organization licensee and in each inter-track wagering
5facility and inter-track wagering location operated by the
6organization licensee:
7        (1) each entrance and exit; and
8        (2) near each credit location.
9    The signs shall be provided by the Department of Revenue.
10    (b) Each organization licensee shall print a statement
11regarding withholding of delinquent claims due and payable to
12the State, the text of which shall be determined by rule by the
13Department of Revenue, on all official racing programs that
14the organization licensee provides to the general public.
 
15    Section 20. The Illinois Gambling Act is amended by adding
16Sections 13.06 and 13.3 as follows:
 
17    (230 ILCS 10/13.06 new)
18    Sec. 13.06. Withholding of delinquent claims due and
19payable to the State.
20    (a) From winnings required to be reported to the Internal
21Revenue Service on Form W-2G, an owners licensee or a licensee
22that operates one or more facilities or gaming locations at
23which lawful gambling is authorized as provided in this Act
24shall withhold up to the full amount of winnings necessary to

 

 

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1pay the winner's delinquent claims due and payable to the
2State as determined under the Illinois State Collection Act of
31986, Section 2505-810 of the Civil Administrative Code of
4Illinois (Department of Revenue Law), and Section 31 of the
5State Comptroller Act. Amounts withheld shall be paid to the
6Department of Revenue by the owners licensee or casino
7operator licensee, as applicable.
8    (b) For withholding of winnings, the licensee shall be
9entitled to an administrative fee not to exceed the lesser of
104% of the total amount of cash winnings paid to the gambling
11winner or $150.
12    (c) The total amount withheld from the cash payout,
13including the administrative fee, shall not exceed the total
14cash winnings claimed by the obligor. If the cash payout
15claimed is greater than the amount sufficient to satisfy the
16obligor's delinquent child support payments, the licensee
17shall pay the obligor the remaining balance of the payout,
18less the administrative fee authorized by subsection (b), at
19the time it is claimed.
20    (d) A licensee who in good faith complies with the
21requirements of this Section shall not be liable to the gaming
22winner or any other individual or entity.
23    (e) Upon request of a licensed owner under this Act, an
24agent of the Board (such as a gaming special agent employed by
25the Board, a State police officer, or a revenue agent) shall be
26responsible for notifying the person identified as having

 

 

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1delinquent claims due and payable to the State that the
2licensed owner is required by law to withhold all or a portion
3of his or her winnings. If given, this notification must be
4provided at the time the winnings are withheld.
5    (f) The provisions of this Section shall be operative on
6and after the date that rules are adopted by the Department of
7Revenue pursuant to Section 2505-810 of the Civil
8Administrative Code of Illinois (Department of Revenue Law)
9and the State Comptroller pursuant to Section 31 of the State
10Comptroller Act.
11    (g) The delinquent claims due and payable to the State
12required to be withheld under this Section and the
13administrative fee under subsection (b) have priority over any
14secured or unsecured claim on cash winnings, except claims for
15federal or State taxes that are required to be withheld under
16federal or State law claims of delinquent child support.
 
17    (230 ILCS 10/13.3 new)
18    Sec. 13.3. Withholding of delinquent claims due and
19payable to the State; signs; statement.
20    (a) Each licensed owner may post signs with a statement
21regarding withholding of delinquent claims due and payable to
22the State, the text of which shall be determined by rule by the
23Department of Revenue, at the following locations in each
24facility at which gambling is conducted by the licensed owner:
25        (1) each entrance and exit;

 

 

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1        (2) near each credit location; and
2        (3) at each cashier's cage.
3    The signs shall be provided by the Department of Revenue.
4    (b) Each licensed owner may print a statement regarding
5withholding of delinquent claims due and payable to the State,
6the text of which shall be determined by rule by the Department
7of Revenue, on all paper stock that the license owner provides
8to the general public.