SB0737 EngrossedLRB096 06805 AMC 16891 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
ARTICLE 1.

 
5    Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act.
 
7    Section 1-5. Definitions. As used in this Act:
8    "Authority" means the Chicago Casino Development Authority
9created by this Act.
10    "Board" means the board appointed pursuant to this Act to
11govern and control the Authority.
12    "Casino" means one temporary land-based or water-based
13facility and a permanent land-based or water-based facility, at
14each of which lawful gambling is authorized and licensed as
15provided in the Illinois Gambling Act.
16    "City" means the City of Chicago.
17    "Casino operator licensee" means any person or entity
18selected by the Authority and approved and licensed by the
19Gaming Board to manage and operate a casino within the City of
20Chicago pursuant to a casino management contract.
21    "Casino management contract" means a legally binding
22agreement between the Authority and a casino operator licensee

 

 

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1to operate or manage a casino.
2    "Executive director" means the person appointed by the
3Board to oversee the daily operations of the Authority.
4    "Gaming Board" means the Illinois Gaming Board created by
5the Illinois Gambling Act.
6    "Mayor" means the Mayor of the City.
 
7    Section 1-12. Creation of the Authority. There is hereby
8created a political subdivision, unit of local government with
9only the powers authorized by law, body politic, and municipal
10corporation, by the name and style of the Chicago Casino
11Development Authority.
 
12    Section 1-13. Duties of the Authority. It shall be the duty
13of the Authority, as a casino licensee under the Illinois
14Gambling Act, to promote and maintain a casino in the City. The
15Authority shall construct, equip, and maintain grounds,
16buildings, and facilities for that purpose. The Authority shall
17contract with a casino operator licensee to manage and operate
18the casino and in no event shall the Authority or City manage
19or operate the casino. The Authority may contract with other
20third parties in order to fulfill its purpose. The Authority is
21responsible for the payment of any fees required of a casino
22operator under subsection (a) of Section 7.8 of the Illinois
23Gambling Act if the casino operator licensee is late in paying
24any such fees. The Authority is granted all rights and powers

 

 

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1necessary to perform such duties.
 
2    Section 1-15. Board.
3    (a) The governing and administrative powers of the
4Authority shall be vested in a body known as the Chicago Casino
5Development Board. The Board shall consist of 3 members
6appointed by the Mayor. All appointees shall be subject to
7background investigation and approval by the Gaming Board. One
8of these members shall be designated by the Mayor to serve as
9chairperson. All of the members appointed by the Mayor shall be
10residents of the City.
11    (b) Board members shall receive $300 for each day the
12Authority meets and shall be entitled to reimbursement of
13reasonable expenses incurred in the performance of their
14official duties. A Board member who serves in the office of
15secretary-treasurer may also receive compensation for services
16provided as that officer.
 
17    Section 1-20. Terms of appointments; resignation and
18removal.
19    (a) The Mayor shall appoint one member of the Board for an
20initial term expiring July 1 of the year following approval by
21the Gaming Board, one member for an initial term expiring July
221 three years following approval by the Gaming Board, and one
23member for an initial term expiring July 1 five years following
24approval by the Gaming Board.

 

 

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1    (b) All successors shall hold office for a term of 5 years
2from the first day of July of the year in which they are
3appointed, except in the case of an appointment to fill a
4vacancy. Each member, including the chairperson, shall hold
5office until the expiration of his or her term and until his or
6her successor is appointed and qualified. Nothing shall
7preclude a member from serving consecutive terms. Any member
8may resign from office, to take effect when a successor has
9been appointed and qualified. A vacancy in office shall occur
10in the case of a member's death or indictment, conviction, or
11plea of guilty to a felony. A vacancy shall be filled for the
12unexpired term by the Mayor with the approval of the Gaming
13Board.
14    (c) The Mayor or the Gaming Board may remove any member of
15the Board upon a finding of incompetence, neglect of duty, or
16misfeasance or malfeasance in office or for a violation of this
17Act. The Gaming Board may remove any member of the Board for
18any violation of the Illinois Gambling Act or the rules and
19regulations of the Gaming Board.
 
20    Section 1-25. Organization of Board; meetings. After
21appointment by the Mayor and approval of the Gaming Board, the
22Board shall organize for the transaction of business. The Board
23shall prescribe the time and place for meetings, the manner in
24which special meetings may be called, and the notice that must
25be given to members. All actions and meetings of the Board

 

 

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1shall be subject to the provisions of the Open Meetings Act.
2Two members of the Board shall constitute a quorum. All
3substantive action of the Board shall be by resolution with an
4affirmative vote of a majority of the members.
 
5    Section 1-30. Executive director; officers.
6    (a) The Board shall appoint an executive director, subject
7to completion of a background investigation and approval by the
8Gaming Board, who shall be the chief executive officer of the
9Authority. The Board shall fix the compensation of the
10executive director. Subject to the general control of the
11Board, the executive director shall be responsible for the
12management of the business, properties, and employees of the
13Authority. The executive director shall direct the enforcement
14of all resolutions, rules, and regulations of the Board, and
15shall perform such other duties as may be prescribed from time
16to time by the Board. All employees and independent
17contractors, consultants, engineers, architects, accountants,
18attorneys, financial experts, construction experts and
19personnel, superintendents, managers, and other personnel
20appointed or employed pursuant to this Act shall report to the
21executive director. In addition to any other duties set forth
22in this Act, the executive director shall do all of the
23following:
24        (1) Direct and supervise the administrative affairs
25    and activities of the Authority in accordance with its

 

 

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1    rules, regulations, and policies.
2        (2) Attend meetings of the Board.
3        (3) Keep minutes of all proceedings of the Board.
4        (4) Approve all accounts for salaries, per diem
5    payments, and allowable expenses of the Board and its
6    employees and consultants.
7        (5) Report and make recommendations to the Board
8    concerning the terms and conditions of any casino
9    management contract.
10        (6) Perform any other duty that the Board requires for
11    carrying out the provisions of this Act.
12        (7) Devote his or her full time to the duties of the
13    office and not hold any other office or employment.
14    (b) The Board may select a secretary-treasurer to hold
15office at the pleasure of the Board. The Board shall fix the
16duties of such officer.
 
17    Section 1-31. General rights and powers of the Authority.
18In addition to the duties and powers set forth in this Act, the
19Authority shall have the following rights and powers:
20        (1) Adopt and alter an official seal.
21        (2) Establish and change its fiscal year.
22        (3) Sue and be sued, plead and be impleaded, all in its
23    own name, and agree to binding arbitration of any dispute
24    to which it is a party.
25        (4) Adopt, amend, and repeal bylaws, rules, and

 

 

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1    regulations consistent with the furtherance of the powers
2    and duties provided for.
3        (5) Maintain its principal office within the City and
4    such other offices as the Board may designate.
5        (6) Select locations in the City for a temporary and a
6    permanent casino, subject to final approval by the Gaming
7    Board.
8        (7) Conduct background investigations of potential
9    casino operator licensees, including its principals or
10    shareholders, and Authority staff.
11        (8) Employ, either as regular employees or independent
12    contractors, consultants, engineers, architects,
13    accountants, attorneys, financial experts, construction
14    experts and personnel, superintendents, managers and other
15    professional personnel, and such other personnel as may be
16    necessary in the judgment of the Board, and fix their
17    compensation.
18        (9) Own, acquire, construct, equip, lease, operate,
19    and maintain grounds, buildings, and facilities to carry
20    out its corporate purposes and duties.
21        (10) Enter into, revoke, and modify contracts in
22    accordance with the rules of the Gaming Board.
23        (11) Enter into a casino management contract subject to
24    the final approval of the Gaming Board.
25        (12) Develop, or cause to be developed by a third
26    party, a master plan for the design, planning, and

 

 

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1    development of a casino.
2        (13) Negotiate and enter into intergovernmental
3    agreements with the State and its agencies, the City, and
4    other units of local government, in furtherance of the
5    powers and duties of the Board. However, the Authority may
6    not enter into an agreement with the State Police.
7        (14) Receive and disburse funds for its own corporate
8    purposes or as otherwise specified in this Act.
9        (15) Borrow money from any source, public or private,
10    for any corporate purpose, including, without limitation,
11    working capital for its operations, reserve funds, or
12    payment of interest, and to mortgage, pledge, or otherwise
13    encumber the property or funds of the Authority and to
14    contract with or engage the services of any person in
15    connection with any financing, including financial
16    institutions, issuers of letters of credit, or insurers and
17    enter into reimbursement agreements with this person or
18    entity which may be secured as if money were borrowed from
19    the person or entity.
20        (16) Issue bonds as provided for under this Act.
21        (17) Receive and accept from any source, private or
22    public, contributions, gifts, or grants of money or
23    property to the Authority.
24        (18) Provide for the insurance of any property,
25    operations, officers, members, agents, or employees of the
26    Authority against any risk or hazard, to self-insure or

 

 

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1    participate in joint self-insurance pools or entities to
2    insure against such risk or hazard, and to provide for the
3    indemnification of its officers, members, employees,
4    contractors, or agents against any and all risks.
5        (19) Exercise all the corporate powers granted
6    Illinois corporations under the Business Corporation Act
7    of 1983, except to the extent that powers are inconsistent
8    with those of a body politic and corporate of the State.
9        (20) Do all things necessary or convenient to carry out
10    the powers granted by this Act.
 
11    Section 1-32. Ethical Conduct.
12    (a) Board members and employees of the Authority must carry
13out their duties and responsibilities in such a manner as to
14promote and preserve public trust and confidence in the
15integrity and conduct of gaming.
16    (b) Except as may be required in the conduct of official
17duties, Board members and employees of the Authority shall not
18engage in gambling on any riverboat, in any casino, or in an
19electronic gaming facility licensed by the Illinois Gaming
20Board or engage in legalized gambling in any establishment
21identified by Board action that, in the judgment of the Board,
22could represent a potential for a conflict of interest.
23    (c) A Board member or employee of the Authority shall not
24use or attempt to use his or her official position to secure or
25attempt to secure any privilege, advantage, favor, or influence

 

 

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

 

 

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

 

 

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1potential for or the appearance of a conflict of interest. The
2holding or acquisition of an interest in such entities through
3an indirect means, such as through a mutual fund, shall not be
4prohibited, expect that the Gaming Board may identify specific
5investments or funds that, in its judgment, are so influenced
6by gaming holdings as to represent the potential for or the
7appearance of a conflict of interest.
8    (j) A spouse, child, or parent of a Board member or
9employee of the Authority may not accept any gift, gratuity,
10service, compensation, travel, lodging, or thing of value, with
11the exception of unsolicited items of an incidental nature,
12from any person, corporation, or entity doing business with the
13Authority.
14    (k) A spouse, child, or parent of a Board member or
15employee of the Authority may not, while the person is a Board
16member or employee of the spouse or within a period of 2 years
17immediately after termination of employment, knowingly accept
18employment or receive compensation or fees for services from a
19person or entity, or its parent or affiliate, that has engaged
20in business with the Authority that resulted in contracts with
21an aggregate value of at least $25,000 or if that Board member
22or employee has made a decision that directly applied to the
23person or entity, or its parent or affiliate.
24    (l) No Board member or employee of the Authority may
25attempt, in any way, to influence any person or corporation
26doing business with the Authority or any officer, agent, or

 

 

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1employee thereof to hire or contract with any person or
2corporation for any compensated work.
3    (m) Any communication between an elected official of the
4City and any applicant for or party to a casino management
5contract with the Authority, or an officer, director, or
6employee thereof, concerning any manner relating in any way to
7gaming or the Authority shall be disclosed to the Board and the
8Gaming Board. Such disclosure shall be in writing by the
9official within 30 days of the communication and shall be filed
10with the Board. Disclosure must consist of the date of the
11communication, the identity and job title of the person with
12whom the communication was made, a brief summary of the
13communication, the action requested or recommended, all
14responses made, the identity and job title of the person making
15the response, and any other pertinent information.
16    Public disclosure of the written summary provided to the
17Board and the Gaming Board shall be subject to the exemptions
18provided under Section 7 of the Freedom of Information Act.
19    (n) Any Board member or employee of the Authority who
20violates any provision of this Section is guilty of a Class 4
21felony.
 
22    Section 1-45. Casino management contracts.
23    (a) The Board shall develop and administer a competitive
24sealed bidding process for the selection of a potential casino
25operator licensee to develop or operate a casino within the

 

 

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1City. The Board shall issue one or more requests for proposals.
2The Board may establish minimum financial and investment
3requirements to determine the eligibility of persons to respond
4to the Board's requests for proposal, and may establish and
5consider such other criteria as it deems appropriate. The Board
6may impose a fee upon persons who respond to requests for
7proposal, in order to reimburse the Board for its costs in
8preparing and issuing the requests and reviewing the proposals.
9    (b) Within 5 days after the time limit for submitting bids
10and proposals has passed, the Board shall make all bids and
11proposals public, provided, however, the Board shall not be
12required to disclose any information which would be exempt from
13disclosure under Section 7 of the Freedom of Information Act.
14Thereafter, the Board shall evaluate the responses to its
15requests for proposal and the ability of all persons or
16entities responding to its requests for proposal to meet the
17requirements of this Act and to undertake and perform the
18obligations set forth in its requests for proposal.
19    (c) After reviewing proposals and subject to Gaming Board
20approval, the Board shall enter into a casino management
21contract authorizing the development, construction, or
22operation of a casino. Validity of the casino management
23contract is contingent upon the issuance of a casino operator
24license to the successful bidder. If the Gaming Board approves
25the contract and grants a casino operator license, the Board
26shall transmit a copy of the executed casino management

 

 

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1contract to the Gaming Board.
2    (d) After the Authority has been issued a casino license,
3the Gaming Board has issued a casino operator license, and the
4Gaming Board has approved the location of a temporary facility,
5the Authority may conduct gaming operations at a temporary
6facility for no longer than 24 months after gaming operations
7begin. The Gaming Board may, after holding a public hearing,
8grant an extension so long as a permanent facility is not
9operational and the Authority is working in good faith to
10complete the permanent facility. The Gaming Board may grant
11additional extensions following a public hearing. Each
12extension may be for a period of no longer than 6 months.
13    (e) Fifty percent of the total amount received by the
14Authority pursuant to a bid for a casino management contract or
15an executed casino management contract must be transmitted to
16the State and deposited into the Capital Projects Fund.
 
17    Section 1-50. Transfer of funds. The revenues received by
18the Authority (other than amounts required to be paid pursuant
19to the Illinois Gambling Act and amounts required to pay the
20operating expenses of the Authority, to pay amounts due the
21casino operator licensee pursuant to a casino management
22contract, to repay any borrowing of the Authority made pursuant
23to Section 1-31, to pay debt service on any bonds issued under
24Section 1-75, and to pay any expenses in connection with the
25issuance of such bonds pursuant to Section 1-75 or derivative

 

 

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1products pursuant to Section 1-85) shall be transferred to the
2City by the Authority.
 
3    Section 1-55. Municipal distributions of proceeds from a
4casino; gaming endowment funds. At least 70% of the moneys that
5a municipality in which a casino is located receives pursuant
6to Section 1-50 of this Act shall be described as "gaming
7endowment funds" and be expended or obligated by the
8municipality for the following purposes and in the following
9amounts:
10        (1) 40% of such gaming endowment funds shall be used
11    for or pledged for the construction and maintenance of
12    infrastructure within the municipality, including but not
13    limited to roads, bridges, transit infrastructure, and
14    municipal facilities.
15        (2) 60% of such gaming endowment funds shall be used
16    for or pledged for the construction and maintenance of
17    schools, parks and cultural institution facilities, and
18    museums within the municipality.
 
19    Section 1-60. Auditor General.
20    (a) Prior to the issuance of bonds under this Act, the
21Authority shall submit to the Auditor General a certification
22that:
23        (1) it is legally authorized to issue bonds;
24        (2) scheduled annual payments of principal and

 

 

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1    interest on the bonds to be issued meet the requirements of
2    Section 1-75 of this Act;
3        (3) no bond shall mature later than 30 years; and
4        (4) after payment of costs of issuance and necessary
5    deposits to funds and accounts established with respect to
6    debt service on the bonds, the net bond proceeds (exclusive
7    of any proceeds to be used to refund outstanding bonds)
8    will be used only for the purposes set forth in this Act.
9    The Authority also shall submit to the Auditor General its
10projections on revenues to be generated and pledged to
11repayment of the bonds as scheduled and such other information
12as the Auditor General may reasonably request.
13    The Auditor General shall examine the certifications and
14information submitted and submit a report to the Authority and
15the Gaming Board indicating whether the required
16certifications, projections, and other information have been
17submitted by the Authority and that the assumptions underlying
18the projections are not unreasonable in the aggregate. The
19Auditor General shall submit the report no later than 60 days
20after receiving the information required to be submitted by the
21Authority.
22    The Authority shall not issue bonds until it receives the
23report from the Auditor General indicating the requirements of
24this Section have been met. The Auditor General's report shall
25not be in the nature of a post-audit or examination and shall
26not lead to the issuance of an opinion, as that term is defined

 

 

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1in generally accepted government auditing standards. The
2Auditor General shall submit a bill to the Authority for costs
3associated with the examinations and report required under this
4Section. The Authority shall reimburse in a timely manner.
5    (b) The Authority shall enter into an intergovernmental
6agreement with the Auditor General authorizing the Auditor
7General to, every 2 years, (i) review the financial audit of
8the Authority performed by the Authority's certified public
9accountants, (ii) perform a management audit of the Authority,
10and (iii) perform a management audit of the casino operator
11licensee. The Auditor General shall provide the Authority and
12the General Assembly with the audits and shall post a copy on
13his or her website. The Auditor General shall submit a bill to
14the Authority for costs associated with the review and the
15audit required under this Section, which costs shall not exceed
16$100,000, and the Authority shall reimburse the Auditor General
17for such costs in a timely manner.
 
18    Section 1-62. Advisory committee. An Advisory Committee is
19established to monitor, review, and report on (1) the
20Authority's utilization of minority-owned business enterprises
21and female-owned business enterprises, (2) employment of
22females, and (3) employment of minorities with regard to the
23development and construction of the casino as authorized under
24Section 7 of the Illinois Gambling Act. The Authority shall
25work with the Advisory Committee in accumulating necessary

 

 

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1information for the Committee to submit reports, as necessary,
2to the General Assembly and to the City of Chicago.
3    The Committee shall consist of 15 members as provided in
4this Section. Seven members shall be selected by the Mayor of
5the City of Chicago; 2 members shall be selected by the
6President of the Illinois Senate; 2 members shall be selected
7by the Speaker of the House of Representatives; 2 members shall
8be selected by the Minority Leader of the Senate; and 2 members
9shall be selected by the Minority Leader of the House of
10Representatives. The Advisory Committee shall meet
11periodically and shall report the information to the Mayor of
12the City and to the General Assembly by December 31st of every
13year.
14    The Advisory Committee shall be dissolved on the date that
15casino gambling operations are first conducted under the
16license authorized under Section 7 of the Illinois Gambling
17Act, other than at a temporary facility.
18    For the purposes of this Section, the terms "female" and
19"minority person" have the meanings provided in Section 2 of
20the Business Enterprise for Minorities, Females, and Persons
21with Disabilities Act.
 
22    Section 1-65. Acquisition of property; eminent domain
23proceedings. For the lawful purposes of this Act, the City may
24acquire by eminent domain or by condemnation proceedings in the
25manner provided by the Eminent Domain Act, real or personal

 

 

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

 

 

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

 

 

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1between the Authority and a corporate trustee or trustees,
2which may be any trust company or bank having the powers of a
3trust company within or without the State. Bonds shall meet the
4following requirements:
5        (1) Bonds shall bear interest at a rate not to exceed
6    the maximum rate authorized by the Bond Authorization Act.
7        (2) Bonds issued pursuant to this Section may be
8    payable on such dates and times as may be provided for by
9    the resolution or indenture authorizing the issuance of
10    such bonds; provided, however, that such bonds shall mature
11    no later than 30 years from the date of issuance.
12        (3) At least 25%, based on total principal amount, of
13    all bonds issued pursuant to this Section shall be sold
14    pursuant to notice of sale and public bid. No more than
15    75%, based on total principal amount, of all bonds issued
16    pursuant to this Section shall be sold by negotiated sale.
17        (4) Bonds shall be payable at a time or times, in the
18    denominations and form, including book entry form, either
19    coupon, registered, or both, and carry the registration and
20    privileges as to exchange, transfer or conversion, and
21    replacement of mutilated, lost, or destroyed bonds as the
22    resolution or trust indenture may provide.
23        (5) Bonds shall be payable in lawful money of the
24    United States at a designated place.
25        (6) Bonds shall be subject to the terms of purchase,
26    payment, redemption, refunding, or refinancing that the

 

 

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

 

 

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

 

 

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

 

 

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1agreement or financing statement, continuation statement, or
2other instrument adopted or entered into by the Authority need
3be filed or recorded in any public record other than the
4records of the Authority in order to perfect the lien against
5third persons, regardless of any contrary provision of law.
6    (i) Bonds that are being paid or retired by issuance, sale,
7or delivery of bonds, and bonds for which sufficient funds have
8been deposited with the paying agent or trustee to provide for
9payment of principal and interest thereon, and any redemption
10premium, as provided in the authorizing resolution, shall not
11be considered outstanding for the purposes of this subsection.
12    (j) The bonds of the Authority shall not be indebtedness of
13the State. The bonds of the Authority are not general
14obligations of the State and are not secured by a pledge of the
15full faith and credit of the State and the holders of bonds of
16the Authority may not require, except as provided in this Act,
17the application of State revenues or funds to the payment of
18bonds of the Authority.
19    (k) The State of Illinois pledges and agrees with the
20owners of the bonds that it will not limit or alter the rights
21and powers vested in the Authority by this Act so as to impair
22the terms of any contract made by the Authority with the owners
23or in any way impair the rights and remedies of the owners
24until the bonds, together with interest on them, and all costs
25and expenses in connection with any action or proceedings by or
26on behalf of the owners, are fully met and discharged. The

 

 

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1Authority is authorized to include this pledge and agreement in
2any contract with the owners of bonds issued under this
3Section.
4    (l) No person holding an elective office in this State,
5holding a seat in the General Assembly, or serving as a board
6member, trustee, officer, or employee of the Authority,
7including the spouse of that person, may receive a legal,
8banking, consulting, or other fee related to the issuance of
9bonds. This prohibition shall also apply to a company or firm
10that employs a person holding an elective office in this State,
11holding a seat in the General Assembly, or serving as a board
12member, trustee, officer, or employee of the Authority,
13including the spouse of that person, if the person or his or
14her spouse has greater than 7.5% ownership of the company or
15firm.
 
16    Section 1-85. Derivative products. With respect to all or
17part of any issue of its bonds, the Authority may enter into
18agreements or contracts with any necessary or appropriate
19person, which will have the benefit of providing to the
20Authority an interest rate basis, cash flow basis, or other
21basis different from that provided in the bonds for the payment
22of interest. Such agreements or contracts may include, without
23limitation, agreements or contracts commonly known as
24"interest rate swap agreements", "forward payment conversion
25agreements", "futures", "options", "puts", or "calls" and

 

 

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1agreements or contracts providing for payments based on levels
2of or changes in interest rates, agreements or contracts to
3exchange cash flows or a series of payments, or to hedge
4payment, rate spread, or similar exposure.
 
5    Section 1-90. Legality for investment. The State of
6Illinois, all governmental entities, all public officers,
7banks, bankers, trust companies, savings banks and
8institutions, building and loan associations, savings and loan
9associations, investment companies, and other persons carrying
10on a banking business, insurance companies, insurance
11associations, and other persons carrying on an insurance
12business, and all executors, administrators, guardians,
13trustees, and other fiduciaries may legally invest any sinking
14funds, moneys, or other funds belonging to them or within their
15control in any bonds issued under this Act. However, nothing in
16this Section shall be construed as relieving any person, firm,
17or corporation from any duty of exercising reasonable care in
18selecting securities for purchase or investment.
 
19    Section 1-105. Budgets and reporting.
20    (a) The Board shall annually adopt a budget for each fiscal
21year. The budget may be modified from time to time in the same
22manner and upon the same vote as it may be adopted. The budget
23shall include the Authority's available funds and estimated
24revenues and shall provide for payment of its obligations and

 

 

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1estimated expenditures for the fiscal year, including, without
2limitation, expenditures for administration, operation,
3maintenance and repairs, debt service, and deposits into
4reserve and other funds and capital projects.
5    (b) The Board shall annually cause the finances of the
6Authority to be audited by a firm of certified public
7accountants selected by the Board in accordance with the rules
8of the Gaming Board and post the firm's audits of the Authority
9on the Authority's Internet website.
10    (c) The Board shall, for each fiscal year, prepare an
11annual report setting forth information concerning its
12activities in the fiscal year and the status of the development
13of the casino. The annual report shall include the audited
14financial statements of the Authority for the fiscal year, the
15budget for the succeeding fiscal year, and the current capital
16plan as of the date of the report. Copies of the annual report
17shall be made available to persons who request them and shall
18be submitted not later than 120 days after the end of the
19Authority's fiscal year or, if the audit of the Authority's
20financial statements is not completed within 120 days after the
21end of the Authority's fiscal year, as soon as practical after
22completion of the audit, to the Governor, the Mayor, the
23General Assembly, and the Commission on Government Forecasting
24and Accountability.
 
25    Section 1-110. Deposit and withdrawal of funds.

 

 

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1    (a) All funds deposited by the Authority in any bank or
2savings and loan association shall be placed in the name of the
3Authority and shall be withdrawn or paid out only by check or
4draft upon the bank or savings and loan association, signed by
52 officers or employees designated by the Board.
6Notwithstanding any other provision of this Section, the Board
7may designate any of its members or any officer or employee of
8the Authority to authorize the wire transfer of funds deposited
9by the secretary-treasurer of funds in a bank or savings and
10loan association for the payment of payroll and employee
11benefits-related expenses.
12    No bank or savings and loan association shall receive
13public funds as permitted by this Section unless it has
14complied with the requirements established pursuant to Section
156 of the Public Funds Investment Act.
16    (b) If any officer or employee whose signature appears upon
17any check or draft issued pursuant to this Act ceases (after
18attaching his signature) to hold his or her office before the
19delivery of such a check or draft to the payee, his or her
20signature shall nevertheless be valid and sufficient for all
21purposes with the same effect as if he or she had remained in
22office until delivery thereof.
 
23    Section 1-112. Contracts with the Authority or casino
24operator licensee; disclosure requirements.
25    (a) A bidder, respondent, offeror, or contractor for

 

 

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1contracts with the Authority or casino operator licensee shall
2disclose the identity of all officers and directors and every
3owner, beneficiary, or person with beneficial interest of more
4than 1% or shareholder entitled to receive more than 1% of the
5total distributable income of any corporation having any
6interest in the contract or in the bidder, respondent, offeror,
7or contractor. The disclosure shall be in writing and attested
8to by an owner, trustee, corporate official, or agent. If stock
9in a corporation is publicly traded and there is no readily
10known individual having greater than a 1% interest, then a
11statement to that effect attested to by an officer or agent of
12the corporation shall fulfill the disclosure statement
13requirement of this Section. A bidder, respondent, offeror, or
14contractor shall notify the Authority of any changes in
15officers, directors, ownership, or individuals having a
16beneficial interest of more than 1%.
17    (b) A bidder, respondent, offeror, or contractor for
18contracts with an annual value of $10,000 or more or for a
19period to exceed one year shall disclose all political
20contributions of the bidder, respondent, offeror, or
21contractor and any affiliated person or entity. Disclosure
22shall include at least the names and addresses of the
23contributors and the dollar amounts of any contributions to any
24political committee made within the previous 2 years. The
25disclosure must be submitted to the Gaming Board with a copy of
26the contract.

 

 

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1    (c) As used in this Section:
2    "Contribution" means contribution as defined in Section
39-1.4 of the Election Code.
4    "Affiliated person" means (i) any person with any ownership
5interest or distributive share of the bidding, responding, or
6contracting entity in excess of 1%, (ii) executive employees of
7the bidding, responding, or contracting entity, and (iii) the
8spouse and minor children of any such persons.
9    "Affiliated entity" means (i) any parent or subsidiary of
10the bidding or contracting entity, (ii) any member of the same
11unitary business group, or (iii) any political committee for
12which the bidding, responding, or contracting entity is the
13sponsoring entity.
14    (d) The Gaming Board may direct the Authority or a casino
15operator licensee to void a contract if a violation of this
16Section occurs. The Authority may direct a casino operator
17licensee to void a contract if a violation of this Section
18occurs.
 
19    Section 1-115. Purchasing.
20    (a) All construction contracts and contracts for supplies,
21materials, equipment, and services, when the cost thereof to
22the Authority exceeds $25,000, shall be let by a competitive
23selection process to the lowest responsible proposer, after
24advertising for proposals, except for the following:
25        (1) When repair parts, accessories, equipment, or

 

 

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1    services are required for equipment or services previously
2    furnished or contracted for;
3        (2) Professional services;
4        (3) When services such as water, light, heat, power,
5    telephone (other than long-distance service), or telegraph
6    are required;
7        (4) When contracts for the use, purchase, delivery,
8    movement, or installation of data processing equipment,
9    software, or services and telecommunications equipment,
10    software, and services are required;
11        (5) Casino management contracts, which shall be
12    awarded as set forth in Section 1-45 of this Act;
13        (6) Contracts where there is only one economically
14    feasible source; and
15        (7) When a purchase is needed on an immediate,
16    emergency basis because there exists a threat to public
17    health or public safety, or when immediate expenditure is
18    necessary for repairs to Authority property in order to
19    protect against further loss of or damage to Authority
20    property, to prevent or minimize serious disruption in
21    Authority services or to ensure the integrity of Authority
22    records.
23    (b) All contracts involving less than $25,000 shall be let
24by competitive selection process whenever possible, and in any
25event in a manner calculated to ensure the best interests of
26the public.

 

 

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1    (c) In determining the responsibility of any proposer, the
2Authority may take into account the proposer's (or an
3individual having a beneficial interest, directly or
4indirectly, of more than 1% in such proposing entity) past
5record of dealings with the Authority, the proposer's
6experience, adequacy of equipment, and ability to complete
7performance within the time set, and other factors besides
8financial responsibility. No such contract shall be awarded to
9any proposer other than the lowest proposer (in case of
10purchase or expenditure) unless authorized or approved by a
11vote of at least 2 members of the Board and such action is
12accompanied by a written statement setting forth the reasons
13for not awarding the contract to the highest or lowest
14proposer, as the case may be. The statement shall be kept on
15file in the principal office of the Authority and open to
16public inspection.
17    (d) The Authority shall have the right to reject all
18proposals and to re-advertise for proposals. If after any such
19re-advertisement, no responsible and satisfactory proposals,
20within the terms of the re-advertisement, is received, the
21Authority may award such contract without competitive
22selection, provided that the Gaming Board must approve the
23contract prior to its execution. The contract must not be less
24advantageous to the Authority than any valid proposal received
25pursuant to advertisement.
26    (e) Advertisements for proposals and re-proposals shall be

 

 

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1published at least once in a daily newspaper of general
2circulation published in the City at least 10 calendar days
3before the time for receiving proposals and in an online
4bulletin published on the Authority's website. Such
5advertisements shall state the time and place for receiving and
6opening of proposals and, by reference to plans and
7specifications on file at the time of the first publication or
8in the advertisement itself, shall describe the character of
9the proposed contract in sufficient detail to fully advise
10prospective proposers of their obligations and to ensure free
11and open competitive selection.
12    (f) All proposals in response to advertisements shall be
13sealed and shall be publicly opened by the Authority. All
14proposers shall be entitled to be present in person or by
15representatives. Cash or a certified or satisfactory cashier's
16check, as a deposit of good faith, in a reasonable amount to be
17fixed by the Authority before advertising for proposals, shall
18be required with the proposal. A bond for faithful performance
19of the contract with surety or sureties satisfactory to the
20Authority and adequate insurance may be required in reasonable
21amounts to be fixed by the Authority before advertising for
22proposals.
23    (g) The contract shall be awarded as promptly as possible
24after the opening of proposals. The proposal of the successful
25proposer, as well as the bids of the unsuccessful proposers,
26shall be placed on file and be open to public inspection

 

 

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1subject to the exemptions from disclosure provided under
2Section 7 of the Freedom of Information Act. All proposals
3shall be void if any disclosure of the terms of any proposals
4in response to an advertisement is made or permitted to be made
5by the Authority before the time fixed for opening proposals.
6    (h) Notice of each and every contract that is offered,
7including renegotiated contracts and change orders, shall be
8published in an online bulletin. The online bulletin must
9include at least the date first offered, the date submission of
10offers is due, the location that offers are to be submitted to,
11a brief purchase description, the method of source selection,
12information of how to obtain a comprehensive purchase
13description and any disclosure and contract forms, and
14encouragement to prospective vendors to hire qualified
15veterans, as defined by Section 45-67 of the Illinois
16Procurement Code, and Illinois residents discharged from any
17Illinois adult correctional center subject to Gaming Board
18licensing and eligibility rules. Notice of each and every
19contract that is let or awarded, including renegotiated
20contracts and change orders, shall be published in the online
21bulletin and must include at least all of the information
22specified in this item (h), as well as the name of the
23successful responsible proposer or offeror, the contract
24price, and the number of unsuccessful responsive proposers and
25any other disclosure specified in this Section. This notice
26must be posted in the online electronic bulletin prior to

 

 

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1execution of the contract.
 
2    Section 1-130. Affirmative action and equal opportunity
3obligations of Authority.
4    (a) The Authority is subject to the requirements of Article
5IV of 2-92 (Sections 2-92-650 through 2-92-720 inclusive) of
6the Chicago Municipal Code, as now or hereafter amended,
7renumbered, or succeeded, concerning a Minority-Owned and
8Women-Owned Business Enterprise Procurement Program for
9construction contracts, and 2-92-420 et seq. of the Chicago
10Municipal Code, as now or hereafter amended, renumbered, or
11succeeded, concerning a Minority-Owned and Women-Owned
12Business Enterprise Procurement Program to determine the
13status of a firm as a Minority Business Enterprise for city
14procurement purposes.
15    (b) The Authority is authorized to enter into agreements
16with contractors' associations, labor unions, and the
17contractors working on the development of the casino to
18establish an apprenticeship preparedness training program to
19provide for an increase in the number of minority and female
20journeymen and apprentices in the building trades and to enter
21into agreements with community college districts or other
22public or private institutions to provide readiness training.
23The Authority is further authorized to enter into contracts
24with public and private educational institutions and persons in
25the gaming, entertainment, hospitality, and tourism industries

 

 

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1to provide training for employment in those industries.
 
2    Section 1-140. Home rule. The regulation and licensing of
3casinos and casino gaming, casino gaming facilities, and casino
4operator licensees under this Act are exclusive powers and
5functions of the State. A home rule unit may not regulate or
6license casinos, casino gaming, casino gaming facilities, or
7casino operator licensees under this Act, except as provided
8under this Act. This Section is a denial and limitation of home
9rule powers and functions under subsection (h) of Section 6 of
10Article VII of the Illinois Constitution.
 
11
ARTICLE 90.

 
12    Section 90-1. Findings. The General Assembly makes all of
13the following findings:
14        (1) That more than 50 municipalities and 5 counties
15    have opted out of video gaming legislation that was enacted
16    by the 96th General Assembly as Public Act 96-34, and
17    revenues for the State's newly approved capital
18    construction program are on track to fall short of
19    projections.
20        (2) That these shortfalls could postpone much-needed
21    road construction, school construction, and other
22    infrastructure improvements.
23        (3) That the State likely will wait a year or more,

 

 

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1    until video gaming is licensed, organized, and online, to
2    realize meaningful revenue from the program.
3        (4) That a significant infusion of new revenue is
4    necessary to ensure that those projects, which are
5    fundamental to the State's economic recovery, proceed as
6    planned.
7        (5) That the decline of the Illinois horse racing and
8    breeding program, a $2.5 billion industry, would be
9    reversed if this amendatory Act of the 96th General
10    Assembly would be enacted.
11        (6) That the Illinois horse racing industry is on the
12    verge of extinction due to fierce competition from fully
13    developed horse racing and gaming operations in other
14    states.
15        (7) That Illinois lawmakers agreed in 1999 to earmark
16    15% of the forthcoming 10th casino's revenue for horse
17    racing; the State's horse racing industry has never seen a
18    penny of that revenue because the 10th casino has yet to
19    open.
20        (8) That allowing the State's horse racing venues,
21    currently licensed gaming destinations, to maximize their
22    capacities with gaming machines, would generate up to $120
23    million to $200 million for the State in the form of extra
24    licensing fees, plus an additional $100 million to $300
25    million in recurring annual tax revenue for the State to
26    help ensure that school, road, and other building projects

 

 

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1    promised under the capital plan occur on schedule.
2        (8) That Illinois agriculture and other businesses
3    that support and supply the horse racing industry, already
4    a sector that employs over 37,000 Illinoisans, also stand
5    to substantially benefit and would be much more likely to
6    create additional jobs should Illinois horse racing once
7    again become competitive with other states.
8        (9) That by keeping these projects on track, the State
9    can be sure that significant job and economic growth will
10    in fact result from the previously enacted legislation.
11        (10) That gaming machines at Illinois horse racing
12    tracks would create an estimated 1,200 to 1,500 permanent
13    jobs, and an estimated capital investment of up to $200
14    million to $400 million at these race tracks would prompt
15    additional trade organization jobs necessary to construct
16    new facilities or remodel race tracks to operate electronic
17    gaming.
 
18    Section 90-5. The Alcoholism and Other Drug Abuse and
19Dependency Act is amended by changing Section 5-20 as follows:
 
20    (20 ILCS 301/5-20)
21    Sec. 5-20. Compulsive gambling program.
22    (a) Subject to appropriation, the Department shall
23establish a program for public education, research, and
24training regarding problem and compulsive gambling and the

 

 

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

 

 

SB0737 Engrossed- 42 -LRB096 06805 AMC 16891 b

1Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
21975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
3of the Charitable Games Act, and Section 13.1 of the Illinois
4Riverboat Gambling Act.
5(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
6    Section 90-7. The Department of Commerce and Economic
7Opportunity Law of the Civil Administrative Code of Illinois is
8amended by adding Section 605-530 as follows:
 
9    (20 ILCS 605/605-530 new)
10    Sec. 605-530. The Depressed Communities Economic
11Development Board.
12    (a) The Depressed Communities Economic Development Board
13is created as an advisory board within the Department of
14Commerce and Economic Opportunity. The Board shall consist of
1510 members as follows:
16        (1) Two members appointed by the President of the
17    Senate, one of whom is appointed to serve an initial term
18    of one year and one of whom is appointed to serve an
19    initial term of 2 years.
20        (2) Two members appointed by the Minority Leader of the
21    Senate, one of whom is appointed to serve an initial term
22    of one year and one of whom is appointed to serve an
23    initial term of 2 years.
24        (3) Two members appointed by the Speaker of the House

 

 

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1    of Representatives, one of whom is appointed to serve an
2    initial term of one year and one of whom is appointed to
3    serve an initial term of 2 years.
4        (4) Two members appointed by the Minority Leader of the
5    House of Representatives, one of whom is appointed to serve
6    an initial term of one year and one of whom is appointed to
7    serve an initial term of 2 years.
8        (5) Two members appointed by the Governor with the
9    advice and consent of the Senate, one of whom is appointed
10    to serve an initial term of one year and one of whom is
11    appointed to serve an initial term of 2 years as chair of
12    the Board at the time of appointment.
13    After the initial terms, each member shall be appointed to
14serve a term of 2 years and until his or her successor has been
15appointed and assumes office. If a vacancy occurs in the Board
16membership, then the vacancy shall be filled in the same manner
17as the initial appointment.
18    (b) Board members shall serve without compensation, but may
19be reimbursed for their reasonable travel expenses from funds
20available for that purpose. The Department of Commerce and
21Economic Opportunity shall provide staff and administrative
22support services to the Board.
23    (c) The Board must make recommendations to the Department
24of Commerce and Economic Opportunity concerning the award of
25grants from amounts appropriated to the Department from the
26Depressed Communities Economic Development Fund, a special

 

 

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1fund created in the State treasury. The Department must make
2grants to public or private entities submitting proposals to
3the Board to revitalize an Illinois depressed community. Grants
4may be used by these entities only for those purposes
5conditioned with the grant. For the purposes of this subsection
6(c), plans for revitalizing an Illinois depressed community
7include plans intended to curb high levels of poverty,
8unemployment, job and population loss, and general distress. An
9Illinois depressed community is an area where the poverty rate,
10as determined by using the most recent data released by the
11United States Census Bureau, is at least 3% greater than the
12State poverty rate as determined by using the most recent data
13released by the United States Census Bureau.
 
14    Section 90-10. The Department of Revenue Law of the Civil
15Administrative Code of Illinois is amended by changing Section
162505-305 as follows:
 
17    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
18    Sec. 2505-305. Investigators.
19    (a) The Department has the power to appoint investigators
20to conduct all investigations, searches, seizures, arrests,
21and other duties imposed under the provisions of any law
22administered by the Department. Except as provided in
23subsection (c), these investigators have and may exercise all
24the powers of peace officers solely for the purpose of

 

 

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

 

 

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

 

 

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1the limitations of this Act, the Legislative Audit Commission
2may by resolution specify additional determinations to be
3included in the scope of the audit.
4    In addition to the foregoing, the Auditor General must also
5conduct a financial audit of the Illinois Sports Facilities
6Authority's expenditures of public funds in connection with the
7reconstruction, renovation, remodeling, extension, or
8improvement of all or substantially all of any existing
9"facility", as that term is defined in the Illinois Sports
10Facilities Authority Act.
11    The Auditor General may also conduct an audit, when
12authorized by the Legislative Audit Commission, of any hospital
13which receives 10% or more of its gross revenues from payments
14from the State of Illinois, Department of Healthcare and Family
15Services (formerly Department of Public Aid), Medical
16Assistance Program.
17    The Auditor General is authorized to conduct financial and
18compliance audits of the Illinois Distance Learning Foundation
19and the Illinois Conservation Foundation.
20    As soon as practical after the effective date of this
21amendatory Act of 1995, the Auditor General shall conduct a
22compliance and management audit of the City of Chicago and any
23other entity with regard to the operation of Chicago O'Hare
24International Airport, Chicago Midway Airport and Merrill C.
25Meigs Field. The audit shall include, but not be limited to, an
26examination of revenues, expenses, and transfers of funds;

 

 

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1purchasing and contracting policies and practices; staffing
2levels; and hiring practices and procedures. When completed,
3the audit required by this paragraph shall be distributed in
4accordance with Section 3-14.
5    The Auditor General shall conduct a financial and
6compliance and program audit of distributions from the
7Municipal Economic Development Fund during the immediately
8preceding calendar year pursuant to Section 8-403.1 of the
9Public Utilities Act at no cost to the city, village, or
10incorporated town that received the distributions.
11    The Auditor General must conduct an audit of the Health
12Facilities and Services Review Board pursuant to Section 19.5
13of the Illinois Health Facilities Planning Act.
14    The Auditor General must conduct an audit of the Chicago
15Casino Development Authority pursuant to Section 1-60 of the
16Chicago Casino Development Authority Act.
17    The Auditor General of the State of Illinois shall annually
18conduct or cause to be conducted a financial and compliance
19audit of the books and records of any county water commission
20organized pursuant to the Water Commission Act of 1985 and
21shall file a copy of the report of that audit with the Governor
22and the Legislative Audit Commission. The filed audit shall be
23open to the public for inspection. The cost of the audit shall
24be charged to the county water commission in accordance with
25Section 6z-27 of the State Finance Act. The county water
26commission shall make available to the Auditor General its

 

 

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1books and records and any other documentation, whether in the
2possession of its trustees or other parties, necessary to
3conduct the audit required. These audit requirements apply only
4through July 1, 2007.
5    The Auditor General must conduct audits of the Rend Lake
6Conservancy District as provided in Section 25.5 of the River
7Conservancy Districts Act.
8    The Auditor General must conduct financial audits of the
9Southeastern Illinois Economic Development Authority as
10provided in Section 70 of the Southeastern Illinois Economic
11Development Authority Act.
12    The Auditor General shall conduct a compliance audit in
13accordance with subsections (d) and (f) of Section 30 of the
14Innovation Development and Economy Act.
15(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
1696-939, eff. 6-24-10.)
 
17    Section 90-15. The State Finance Act is amended by adding
18Sections 5.786, 5.787, 5.788, and 6z-79 and by changing Section
196z-77 as follows:
 
20    (30 ILCS 105/5.786 new)
21    Sec. 5.786. The State and County Fair Assistance Fund.
 
22    (30 ILCS 105/5.787 new)
23    Sec. 5.787. The Depressed Communities Economic Development

 

 

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1Fund.
 
2    (30 ILCS 105/5.788 new)
3    Sec. 5.788. The Gaming Facilities Fee Revenue Fund.
 
4    (30 ILCS 105/6z-77)
5    Sec. 6z-77. The Capital Projects Fund.
6    (a) The Capital Projects Fund is created as a special fund
7in the State Treasury. The State Comptroller and State
8Treasurer shall transfer from the Capital Projects Fund to the
9General Revenue Fund $61,294,550 on October 1, 2009,
10$122,589,100 on January 1, 2010, and $61,294,550 on April 1,
112010. Beginning on July 1, 2010, and on July 1 and January 1 of
12each year thereafter, the State Comptroller and State Treasurer
13shall transfer the sum of $122,589,100 from the Capital
14Projects Fund to the General Revenue Fund.
15    (b) Subject to appropriation, the Capital Projects Fund may
16be used only for capital projects and the payment of debt
17service on bonds issued for capital projects. All interest
18earned on moneys in the Fund shall be deposited into the Fund.
19The Fund shall not be subject to administrative charges or
20chargebacks, such as but not limited to those authorized under
21Section 8h.
22    (c) Annually, the Governor's Office of Management and
23Budget shall determine if revenues deposited into the Fund in
24the fiscal year are expected to exceed the amount needed in the

 

 

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1fiscal year for capital projects and the payment of debt
2service on bonds issued for capital projects. If any such
3excess amount exists, then on April 1 or as soon thereafter as
4practical, the Governor's Office of Management and Budget shall
5certify such amount, accompanied by a description of the
6process by which the amount was calculated, to the State
7Comptroller and the State Treasurer. Within 15 days after the
8receipt of the certification required by this subsection (c),
9the State Comptroller and the State Treasurer shall transfer
10that amount from the Capital Projects Fund to the Education
11Assistance Fund, except that the amount transferred to the
12Education Assistance Fund pursuant to this subsection (c) shall
13not exceed the estimated amount of revenues that will be
14deposited into the Fund pursuant to Sections 12 and 13 of the
15Illinois Gambling Act in the fiscal year.
16(Source: P.A. 96-34, eff. 7-13-09.)
 
17    (30 ILCS 105/6z-79 new)
18    Sec. 6z-79. The Gaming Facilities Fee Revenue Fund.
19    (a) The Gaming Facilities Fee Revenue Fund is created as a
20special fund in the State treasury.
21    (b) Fifty percent of revenues in the Fund shall be
22transferred to the Capital Projects Fund for capital projects.
23The remaining fifty percent of revenues in the Fund shall be
24used, subject to appropriation, by the Comptroller solely for
25the purpose of payment of vouchers that are outstanding for

 

 

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1more than 60 days. Whenever practical, the Comptroller must
2prioritize voucher payments for expenses related to medical
3assistance under the Illinois Public Aid Code, the Children's
4Health Insurance Program Act, the Covering ALL KIDS Health
5Insurance Act, and the Senior Citizens and Disabled Persons
6Property Tax Relief and Pharmaceutical Assistance Act.
7    (c) The Fund shall consist of fee revenues received
8pursuant to subsections (e-5) and (e-10) of Section 7 and
9subsections (b) and (c) of Section 7.6 of the Illinois Gambling
10Act. All interest earned on moneys in the Fund shall be
11deposited into the Fund.
12    (d) The Fund shall not be subject to administrative charges
13or chargebacks, including, but not limited to, those authorized
14under subsection (h) of Section 8 of this Act.
 
15    Section 90-20. The Illinois Income Tax Act is amended by
16changing Section 201 as follows:
 
17    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
18    Sec. 201. Tax Imposed.
19    (a) In general. A tax measured by net income is hereby
20imposed on every individual, corporation, trust and estate for
21each taxable year ending after July 31, 1969 on the privilege
22of earning or receiving income in or as a resident of this
23State. Such tax shall be in addition to all other occupation or
24privilege taxes imposed by this State or by any municipal

 

 

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

 

 

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1    1989, an amount equal to the sum of (i) 4% of the
2    taxpayer's net income for the period prior to July 1, 1989,
3    as calculated under Section 202.3, and (ii) 4.8% of the
4    taxpayer's net income for the period after June 30, 1989,
5    as calculated under Section 202.3.
6        (8) In the case of a corporation, for taxable years
7    beginning after June 30, 1989, an amount equal to 4.8% of
8    the taxpayer's net income for the taxable year.
9    (b-5) Surcharge; sale or exchange of assets, properties,
10and intangibles of gaming licensees. For each of taxable years
112010 through 2019, a surcharge is imposed on all taxpayers on
12income arising from the sale or exchange of capital assets,
13depreciable business property, real property used in the trade
14or business, and Section 197 intangibles (i) of an organization
15licensee under the Illinois Horse Racing Act of 1975 and (ii)
16of an owners licensee or an electronic gaming licensee under
17the Illinois Gambling Act. The amount of the surcharge is equal
18to the amount of federal income tax liability for the taxable
19year attributable to those sales and exchanges. The surcharge
20imposed shall not apply if:
21        (1) the owners license, electronic gaming license,
22    organization license, or race track property is
23    transferred as a result of any of the following:
24            (A) bankruptcy, a receivership, or a debt
25        adjustment initiated by or against the initial
26        licensee or the substantial owners of the initial

 

 

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1        licensee;
2            (B) cancellation, revocation, or termination of
3        any such license by the Illinois Gaming Board or the
4        Illinois Racing Board;
5            (C) a determination by the Illinois Gaming Board
6        that transfer of the license is in the best interests
7        of Illinois gaming;
8            (D) the death of an owner of the equity interest in
9        a licensee;
10            (E) the acquisition of a controlling interest in
11        the stock or substantially all of the assets of a
12        publicly traded company;
13            (F) a transfer by a parent company to a wholly
14        owned subsidiary; or
15            (G) the transfer or sale to or by one person to
16        another person where both persons were initial owners
17        of the license when the license was issued; or
18        (2) the controlling interest in the owners license,
19    electronic gaming license, organization license, or race
20    track property is transferred in a transaction to lineal
21    descendants in which no gain or loss is recognized or as a
22    result of a transaction in accordance with Section 351 of
23    the Internal Revenue Code in which no gain or loss is
24    recognized.
25        (3) the owners license, electronic gaming license,
26    organization license, or race track property is

 

 

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1    transferred, sold, or exchanged pursuant to an executed
2    purchase agreement initially submitted to the Illinois
3    Gaming Board for consideration on or before October 1,
4    2010, regardless of whether such purchase agreement is
5    subsequently amended or modified.
6    The transfer of an electronic gaming license, organization
7license, or race track property by a person other than the
8initial licensee to receive the electronic gaming license is
9not subject to a surcharge. The Department shall adopt rules
10necessary to implement and administer this subsection.
11    (c) Personal Property Tax Replacement Income Tax.
12Beginning on July 1, 1979 and thereafter, in addition to such
13income tax, there is also hereby imposed the Personal Property
14Tax Replacement Income Tax measured by net income on every
15corporation (including Subchapter S corporations), partnership
16and trust, for each taxable year ending after June 30, 1979.
17Such taxes are imposed on the privilege of earning or receiving
18income in or as a resident of this State. The Personal Property
19Tax Replacement Income Tax shall be in addition to the income
20tax imposed by subsections (a) and (b) of this Section and in
21addition to all other occupation or privilege taxes imposed by
22this State or by any municipal corporation or political
23subdivision thereof.
24    (d) Additional Personal Property Tax Replacement Income
25Tax Rates. The personal property tax replacement income tax
26imposed by this subsection and subsection (c) of this Section

 

 

SB0737 Engrossed- 57 -LRB096 06805 AMC 16891 b

1in the case of a corporation, other than a Subchapter S
2corporation and except as adjusted by subsection (d-1), shall
3be an additional amount equal to 2.85% of such taxpayer's net
4income for the taxable year, except that beginning on January
51, 1981, and thereafter, the rate of 2.85% specified in this
6subsection shall be reduced to 2.5%, and in the case of a
7partnership, trust or a Subchapter S corporation shall be an
8additional amount equal to 1.5% of such taxpayer's net income
9for the taxable year.
10    (d-1) Rate reduction for certain foreign insurers. In the
11case of a foreign insurer, as defined by Section 35A-5 of the
12Illinois Insurance Code, whose state or country of domicile
13imposes on insurers domiciled in Illinois a retaliatory tax
14(excluding any insurer whose premiums from reinsurance assumed
15are 50% or more of its total insurance premiums as determined
16under paragraph (2) of subsection (b) of Section 304, except
17that for purposes of this determination premiums from
18reinsurance do not include premiums from inter-affiliate
19reinsurance arrangements), beginning with taxable years ending
20on or after December 31, 1999, the sum of the rates of tax
21imposed by subsections (b) and (d) shall be reduced (but not
22increased) to the rate at which the total amount of tax imposed
23under this Act, net of all credits allowed under this Act,
24shall equal (i) the total amount of tax that would be imposed
25on the foreign insurer's net income allocable to Illinois for
26the taxable year by such foreign insurer's state or country of

 

 

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1domicile if that net income were subject to all income taxes
2and taxes measured by net income imposed by such foreign
3insurer's state or country of domicile, net of all credits
4allowed or (ii) a rate of zero if no such tax is imposed on such
5income by the foreign insurer's state of domicile. For the
6purposes of this subsection (d-1), an inter-affiliate includes
7a mutual insurer under common management.
8        (1) For the purposes of subsection (d-1), in no event
9    shall the sum of the rates of tax imposed by subsections
10    (b) and (d) be reduced below the rate at which the sum of:
11            (A) the total amount of tax imposed on such foreign
12        insurer under this Act for a taxable year, net of all
13        credits allowed under this Act, plus
14            (B) the privilege tax imposed by Section 409 of the
15        Illinois Insurance Code, the fire insurance company
16        tax imposed by Section 12 of the Fire Investigation
17        Act, and the fire department taxes imposed under
18        Section 11-10-1 of the Illinois Municipal Code,
19    equals 1.25% for taxable years ending prior to December 31,
20    2003, or 1.75% for taxable years ending on or after
21    December 31, 2003, of the net taxable premiums written for
22    the taxable year, as described by subsection (1) of Section
23    409 of the Illinois Insurance Code. This paragraph will in
24    no event increase the rates imposed under subsections (b)
25    and (d).
26        (2) Any reduction in the rates of tax imposed by this

 

 

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1    subsection shall be applied first against the rates imposed
2    by subsection (b) and only after the tax imposed by
3    subsection (a) net of all credits allowed under this
4    Section other than the credit allowed under subsection (i)
5    has been reduced to zero, against the rates imposed by
6    subsection (d).
7    This subsection (d-1) is exempt from the provisions of
8Section 250.
9    (e) Investment credit. A taxpayer shall be allowed a credit
10against the Personal Property Tax Replacement Income Tax for
11investment in qualified property.
12        (1) A taxpayer shall be allowed a credit equal to .5%
13    of the basis of qualified property placed in service during
14    the taxable year, provided such property is placed in
15    service on or after July 1, 1984. There shall be allowed an
16    additional credit equal to .5% of the basis of qualified
17    property placed in service during the taxable year,
18    provided such property is placed in service on or after
19    July 1, 1986, and the taxpayer's base employment within
20    Illinois has increased by 1% or more over the preceding
21    year as determined by the taxpayer's employment records
22    filed with the Illinois Department of Employment Security.
23    Taxpayers who are new to Illinois shall be deemed to have
24    met the 1% growth in base employment for the first year in
25    which they file employment records with the Illinois
26    Department of Employment Security. The provisions added to

 

 

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1    this Section by Public Act 85-1200 (and restored by Public
2    Act 87-895) shall be construed as declaratory of existing
3    law and not as a new enactment. If, in any year, the
4    increase in base employment within Illinois over the
5    preceding year is less than 1%, the additional credit shall
6    be limited to that percentage times a fraction, the
7    numerator of which is .5% and the denominator of which is
8    1%, but shall not exceed .5%. The investment credit shall
9    not be allowed to the extent that it would reduce a
10    taxpayer's liability in any tax year below zero, nor may
11    any credit for qualified property be allowed for any year
12    other than the year in which the property was placed in
13    service in Illinois. For tax years ending on or after
14    December 31, 1987, and on or before December 31, 1988, the
15    credit shall be allowed for the tax year in which the
16    property is placed in service, or, if the amount of the
17    credit exceeds the tax liability for that year, whether it
18    exceeds the original liability or the liability as later
19    amended, such excess may be carried forward and applied to
20    the tax liability of the 5 taxable years following the
21    excess credit years if the taxpayer (i) makes investments
22    which cause the creation of a minimum of 2,000 full-time
23    equivalent jobs in Illinois, (ii) is located in an
24    enterprise zone established pursuant to the Illinois
25    Enterprise Zone Act and (iii) is certified by the
26    Department of Commerce and Community Affairs (now

 

 

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1    Department of Commerce and Economic Opportunity) as
2    complying with the requirements specified in clause (i) and
3    (ii) by July 1, 1986. The Department of Commerce and
4    Community Affairs (now Department of Commerce and Economic
5    Opportunity) shall notify the Department of Revenue of all
6    such certifications immediately. For tax years ending
7    after December 31, 1988, the credit shall be allowed for
8    the tax year in which the property is placed in service,
9    or, if the amount of the credit exceeds the tax liability
10    for that year, whether it exceeds the original liability or
11    the liability as later amended, such excess may be carried
12    forward and applied to the tax liability of the 5 taxable
13    years following the excess credit years. The credit shall
14    be applied to the earliest year for which there is a
15    liability. If there is credit from more than one tax year
16    that is available to offset a liability, earlier credit
17    shall be applied first.
18        (2) The term "qualified property" means property
19    which:
20            (A) is tangible, whether new or used, including
21        buildings and structural components of buildings and
22        signs that are real property, but not including land or
23        improvements to real property that are not a structural
24        component of a building such as landscaping, sewer
25        lines, local access roads, fencing, parking lots, and
26        other appurtenances;

 

 

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1            (B) is depreciable pursuant to Section 167 of the
2        Internal Revenue Code, except that "3-year property"
3        as defined in Section 168(c)(2)(A) of that Code is not
4        eligible for the credit provided by this subsection
5        (e);
6            (C) is acquired by purchase as defined in Section
7        179(d) of the Internal Revenue Code;
8            (D) is used in Illinois by a taxpayer who is
9        primarily engaged in manufacturing, or in mining coal
10        or fluorite, or in retailing, or was placed in service
11        on or after July 1, 2006 in a River Edge Redevelopment
12        Zone established pursuant to the River Edge
13        Redevelopment Zone Act; and
14            (E) has not previously been used in Illinois in
15        such a manner and by such a person as would qualify for
16        the credit provided by this subsection (e) or
17        subsection (f).
18        (3) For purposes of this subsection (e),
19    "manufacturing" means the material staging and production
20    of tangible personal property by procedures commonly
21    regarded as manufacturing, processing, fabrication, or
22    assembling which changes some existing material into new
23    shapes, new qualities, or new combinations. For purposes of
24    this subsection (e) the term "mining" shall have the same
25    meaning as the term "mining" in Section 613(c) of the
26    Internal Revenue Code. For purposes of this subsection (e),

 

 

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1    the term "retailing" means the sale of tangible personal
2    property for use or consumption and not for resale, or
3    services rendered in conjunction with the sale of tangible
4    personal property for use or consumption and not for
5    resale. For purposes of this subsection (e), "tangible
6    personal property" has the same meaning as when that term
7    is used in the Retailers' Occupation Tax Act, and, for
8    taxable years ending after December 31, 2008, does not
9    include the generation, transmission, or distribution of
10    electricity.
11        (4) The basis of qualified property shall be the basis
12    used to compute the depreciation deduction for federal
13    income tax purposes.
14        (5) If the basis of the property for federal income tax
15    depreciation purposes is increased after it has been placed
16    in service in Illinois by the taxpayer, the amount of such
17    increase shall be deemed property placed in service on the
18    date of such increase in basis.
19        (6) The term "placed in service" shall have the same
20    meaning as under Section 46 of the Internal Revenue Code.
21        (7) If during any taxable year, any property ceases to
22    be qualified property in the hands of the taxpayer within
23    48 months after being placed in service, or the situs of
24    any qualified property is moved outside Illinois within 48
25    months after being placed in service, the Personal Property
26    Tax Replacement Income Tax for such taxable year shall be

 

 

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1    increased. Such increase shall be determined by (i)
2    recomputing the investment credit which would have been
3    allowed for the year in which credit for such property was
4    originally allowed by eliminating such property from such
5    computation and, (ii) subtracting such recomputed credit
6    from the amount of credit previously allowed. For the
7    purposes of this paragraph (7), a reduction of the basis of
8    qualified property resulting from a redetermination of the
9    purchase price shall be deemed a disposition of qualified
10    property to the extent of such reduction.
11        (8) Unless the investment credit is extended by law,
12    the basis of qualified property shall not include costs
13    incurred after December 31, 2013, except for costs incurred
14    pursuant to a binding contract entered into on or before
15    December 31, 2013.
16        (9) Each taxable year ending before December 31, 2000,
17    a partnership may elect to pass through to its partners the
18    credits to which the partnership is entitled under this
19    subsection (e) for the taxable year. A partner may use the
20    credit allocated to him or her under this paragraph only
21    against the tax imposed in subsections (c) and (d) of this
22    Section. If the partnership makes that election, those
23    credits shall be allocated among the partners in the
24    partnership in accordance with the rules set forth in
25    Section 704(b) of the Internal Revenue Code, and the rules
26    promulgated under that Section, and the allocated amount of

 

 

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1    the credits shall be allowed to the partners for that
2    taxable year. The partnership shall make this election on
3    its Personal Property Tax Replacement Income Tax return for
4    that taxable year. The election to pass through the credits
5    shall be irrevocable.
6        For taxable years ending on or after December 31, 2000,
7    a partner that qualifies its partnership for a subtraction
8    under subparagraph (I) of paragraph (2) of subsection (d)
9    of Section 203 or a shareholder that qualifies a Subchapter
10    S corporation for a subtraction under subparagraph (S) of
11    paragraph (2) of subsection (b) of Section 203 shall be
12    allowed a credit under this subsection (e) equal to its
13    share of the credit earned under this subsection (e) during
14    the taxable year by the partnership or Subchapter S
15    corporation, determined in accordance with the
16    determination of income and distributive share of income
17    under Sections 702 and 704 and Subchapter S of the Internal
18    Revenue Code. This paragraph is exempt from the provisions
19    of Section 250.
20    (f) Investment credit; Enterprise Zone; River Edge
21Redevelopment Zone.
22        (1) A taxpayer shall be allowed a credit against the
23    tax imposed by subsections (a) and (b) of this Section for
24    investment in qualified property which is placed in service
25    in an Enterprise Zone created pursuant to the Illinois
26    Enterprise Zone Act or, for property placed in service on

 

 

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1    or after July 1, 2006, a River Edge Redevelopment Zone
2    established pursuant to the River Edge Redevelopment Zone
3    Act. For partners, shareholders of Subchapter S
4    corporations, and owners of limited liability companies,
5    if the liability company is treated as a partnership for
6    purposes of federal and State income taxation, there shall
7    be allowed a credit under this subsection (f) to be
8    determined in accordance with the determination of income
9    and distributive share of income under Sections 702 and 704
10    and Subchapter S of the Internal Revenue Code. The credit
11    shall be .5% of the basis for such property. The credit
12    shall be available only in the taxable year in which the
13    property is placed in service in the Enterprise Zone or
14    River Edge Redevelopment Zone and shall not be allowed to
15    the extent that it would reduce a taxpayer's liability for
16    the tax imposed by subsections (a) and (b) of this Section
17    to below zero. For tax years ending on or after December
18    31, 1985, the credit shall be allowed for the tax year in
19    which the property is placed in service, or, if the amount
20    of the credit exceeds the tax liability for that year,
21    whether it exceeds the original liability or the liability
22    as later amended, such excess may be carried forward and
23    applied to the tax liability of the 5 taxable years
24    following the excess credit year. The credit shall be
25    applied to the earliest year for which there is a
26    liability. If there is credit from more than one tax year

 

 

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1    that is available to offset a liability, the credit
2    accruing first in time shall be applied first.
3        (2) The term qualified property means property which:
4            (A) is tangible, whether new or used, including
5        buildings and structural components of buildings;
6            (B) is depreciable pursuant to Section 167 of the
7        Internal Revenue Code, except that "3-year property"
8        as defined in Section 168(c)(2)(A) of that Code is not
9        eligible for the credit provided by this subsection
10        (f);
11            (C) is acquired by purchase as defined in Section
12        179(d) of the Internal Revenue Code;
13            (D) is used in the Enterprise Zone or River Edge
14        Redevelopment Zone by the taxpayer; and
15            (E) has not been previously used in Illinois in
16        such a manner and by such a person as would qualify for
17        the credit provided by this subsection (f) or
18        subsection (e).
19        (3) The basis of qualified property shall be the basis
20    used to compute the depreciation deduction for federal
21    income tax purposes.
22        (4) If the basis of the property for federal income tax
23    depreciation purposes is increased after it has been placed
24    in service in the Enterprise Zone or River Edge
25    Redevelopment Zone by the taxpayer, the amount of such
26    increase shall be deemed property placed in service on the

 

 

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1    date of such increase in basis.
2        (5) The term "placed in service" shall have the same
3    meaning as under Section 46 of the Internal Revenue Code.
4        (6) If during any taxable year, any property ceases to
5    be qualified property in the hands of the taxpayer within
6    48 months after being placed in service, or the situs of
7    any qualified property is moved outside the Enterprise Zone
8    or River Edge Redevelopment Zone within 48 months after
9    being placed in service, the tax imposed under subsections
10    (a) and (b) of this Section for such taxable year shall be
11    increased. Such increase shall be determined by (i)
12    recomputing the investment credit which would have been
13    allowed for the year in which credit for such property was
14    originally allowed by eliminating such property from such
15    computation, and (ii) subtracting such recomputed credit
16    from the amount of credit previously allowed. For the
17    purposes of this paragraph (6), a reduction of the basis of
18    qualified property resulting from a redetermination of the
19    purchase price shall be deemed a disposition of qualified
20    property to the extent of such reduction.
21        (7) There shall be allowed an additional credit equal
22    to 0.5% of the basis of qualified property placed in
23    service during the taxable year in a River Edge
24    Redevelopment Zone, provided such property is placed in
25    service on or after July 1, 2006, and the taxpayer's base
26    employment within Illinois has increased by 1% or more over

 

 

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1    the preceding year as determined by the taxpayer's
2    employment records filed with the Illinois Department of
3    Employment Security. Taxpayers who are new to Illinois
4    shall be deemed to have met the 1% growth in base
5    employment for the first year in which they file employment
6    records with the Illinois Department of Employment
7    Security. If, in any year, the increase in base employment
8    within Illinois over the preceding year is less than 1%,
9    the additional credit shall be limited to that percentage
10    times a fraction, the numerator of which is 0.5% and the
11    denominator of which is 1%, but shall not exceed 0.5%.
12    (g) Jobs Tax Credit; Enterprise Zone, River Edge
13Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
14        (1) A taxpayer conducting a trade or business in an
15    enterprise zone or a High Impact Business designated by the
16    Department of Commerce and Economic Opportunity or for
17    taxable years ending on or after December 31, 2006, in a
18    River Edge Redevelopment Zone conducting a trade or
19    business in a federally designated Foreign Trade Zone or
20    Sub-Zone shall be allowed a credit against the tax imposed
21    by subsections (a) and (b) of this Section in the amount of
22    $500 per eligible employee hired to work in the zone during
23    the taxable year.
24        (2) To qualify for the credit:
25            (A) the taxpayer must hire 5 or more eligible
26        employees to work in an enterprise zone, River Edge

 

 

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1        Redevelopment Zone, or federally designated Foreign
2        Trade Zone or Sub-Zone during the taxable year;
3            (B) the taxpayer's total employment within the
4        enterprise zone, River Edge Redevelopment Zone, or
5        federally designated Foreign Trade Zone or Sub-Zone
6        must increase by 5 or more full-time employees beyond
7        the total employed in that zone at the end of the
8        previous tax year for which a jobs tax credit under
9        this Section was taken, or beyond the total employed by
10        the taxpayer as of December 31, 1985, whichever is
11        later; and
12            (C) the eligible employees must be employed 180
13        consecutive days in order to be deemed hired for
14        purposes of this subsection.
15        (3) An "eligible employee" means an employee who is:
16            (A) Certified by the Department of Commerce and
17        Economic Opportunity as "eligible for services"
18        pursuant to regulations promulgated in accordance with
19        Title II of the Job Training Partnership Act, Training
20        Services for the Disadvantaged or Title III of the Job
21        Training Partnership Act, Employment and Training
22        Assistance for Dislocated Workers Program.
23            (B) Hired after the enterprise zone, River Edge
24        Redevelopment Zone, or federally designated Foreign
25        Trade Zone or Sub-Zone was designated or the trade or
26        business was located in that zone, whichever is later.

 

 

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1            (C) Employed in the enterprise zone, River Edge
2        Redevelopment Zone, or Foreign Trade Zone or Sub-Zone.
3        An employee is employed in an enterprise zone or
4        federally designated Foreign Trade Zone or Sub-Zone if
5        his services are rendered there or it is the base of
6        operations for the services performed.
7            (D) A full-time employee working 30 or more hours
8        per week.
9        (4) For tax years ending on or after December 31, 1985
10    and prior to December 31, 1988, the credit shall be allowed
11    for the tax year in which the eligible employees are hired.
12    For tax years ending on or after December 31, 1988, the
13    credit shall be allowed for the tax year immediately
14    following the tax year in which the eligible employees are
15    hired. If the amount of the credit exceeds the tax
16    liability for that year, whether it exceeds the original
17    liability or the liability as later amended, such excess
18    may be carried forward and applied to the tax liability of
19    the 5 taxable years following the excess credit year. The
20    credit shall be applied to the earliest year for which
21    there is a liability. If there is credit from more than one
22    tax year that is available to offset a liability, earlier
23    credit shall be applied first.
24        (5) The Department of Revenue shall promulgate such
25    rules and regulations as may be deemed necessary to carry
26    out the purposes of this subsection (g).

 

 

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1        (6) The credit shall be available for eligible
2    employees hired on or after January 1, 1986.
3    (h) Investment credit; High Impact Business.
4        (1) Subject to subsections (b) and (b-5) of Section 5.5
5    of the Illinois Enterprise Zone Act, a taxpayer shall be
6    allowed a credit against the tax imposed by subsections (a)
7    and (b) of this Section for investment in qualified
8    property which is placed in service by a Department of
9    Commerce and Economic Opportunity designated High Impact
10    Business. The credit shall be .5% of the basis for such
11    property. The credit shall not be available (i) until the
12    minimum investments in qualified property set forth in
13    subdivision (a)(3)(A) of Section 5.5 of the Illinois
14    Enterprise Zone Act have been satisfied or (ii) until the
15    time authorized in subsection (b-5) of the Illinois
16    Enterprise Zone Act for entities designated as High Impact
17    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
18    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
19    Act, and shall not be allowed to the extent that it would
20    reduce a taxpayer's liability for the tax imposed by
21    subsections (a) and (b) of this Section to below zero. The
22    credit applicable to such investments shall be taken in the
23    taxable year in which such investments have been completed.
24    The credit for additional investments beyond the minimum
25    investment by a designated high impact business authorized
26    under subdivision (a)(3)(A) of Section 5.5 of the Illinois

 

 

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

 

 

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

 

 

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

 

 

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1allocable to Illinois and the denominator of which is Illinois
2base income, and further multiplying the product by the tax
3rate imposed by subsections (a) and (b) of this Section.
4    Any credit earned on or after December 31, 1986 under this
5subsection which is unused in the year the credit is computed
6because it exceeds the tax liability imposed by subsections (a)
7and (b) for that year (whether it exceeds the original
8liability or the liability as later amended) may be carried
9forward and applied to the tax liability imposed by subsections
10(a) and (b) of the 5 taxable years following the excess credit
11year, provided that no credit may be carried forward to any
12year ending on or after December 31, 2003. This credit shall be
13applied first to the earliest year for which there is a
14liability. If there is a credit under this subsection from more
15than one tax year that is available to offset a liability the
16earliest credit arising under this subsection shall be applied
17first.
18    If, during any taxable year ending on or after December 31,
191986, the tax imposed by subsections (c) and (d) of this
20Section for which a taxpayer has claimed a credit under this
21subsection (i) is reduced, the amount of credit for such tax
22shall also be reduced. Such reduction shall be determined by
23recomputing the credit to take into account the reduced tax
24imposed by subsections (c) and (d). If any portion of the
25reduced amount of credit has been carried to a different
26taxable year, an amended return shall be filed for such taxable

 

 

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1year to reduce the amount of credit claimed.
2    (j) Training expense credit. Beginning with tax years
3ending on or after December 31, 1986 and prior to December 31,
42003, a taxpayer shall be allowed a credit against the tax
5imposed by subsections (a) and (b) under this Section for all
6amounts paid or accrued, on behalf of all persons employed by
7the taxpayer in Illinois or Illinois residents employed outside
8of Illinois by a taxpayer, for educational or vocational
9training in semi-technical or technical fields or semi-skilled
10or skilled fields, which were deducted from gross income in the
11computation of taxable income. The credit against the tax
12imposed by subsections (a) and (b) shall be 1.6% of such
13training expenses. For partners, shareholders of subchapter S
14corporations, and owners of limited liability companies, if the
15liability company is treated as a partnership for purposes of
16federal and State income taxation, there shall be allowed a
17credit under this subsection (j) to be determined in accordance
18with the determination of income and distributive share of
19income under Sections 702 and 704 and subchapter S of the
20Internal Revenue Code.
21    Any credit allowed under this subsection which is unused in
22the year the credit is earned may be carried forward to each of
23the 5 taxable years following the year for which the credit is
24first computed until it is used. This credit shall be applied
25first to the earliest year for which there is a liability. If
26there is a credit under this subsection from more than one tax

 

 

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1year that is available to offset a liability the earliest
2credit arising under this subsection shall be applied first. No
3carryforward credit may be claimed in any tax year ending on or
4after December 31, 2003.
5    (k) Research and development credit.
6    For tax years ending after July 1, 1990 and prior to
7December 31, 2003, and beginning again for tax years ending on
8or after December 31, 2004, and ending prior to January 1,
92011, a taxpayer shall be allowed a credit against the tax
10imposed by subsections (a) and (b) of this Section for
11increasing research activities in this State. The credit
12allowed against the tax imposed by subsections (a) and (b)
13shall be equal to 6 1/2% of the qualifying expenditures for
14increasing research activities in this State. For partners,
15shareholders of subchapter S corporations, and owners of
16limited liability companies, if the liability company is
17treated as a partnership for purposes of federal and State
18income taxation, there shall be allowed a credit under this
19subsection to be determined in accordance with the
20determination of income and distributive share of income under
21Sections 702 and 704 and subchapter S of the Internal Revenue
22Code.
23    For purposes of this subsection, "qualifying expenditures"
24means the qualifying expenditures as defined for the federal
25credit for increasing research activities which would be
26allowable under Section 41 of the Internal Revenue Code and

 

 

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1which are conducted in this State, "qualifying expenditures for
2increasing research activities in this State" means the excess
3of qualifying expenditures for the taxable year in which
4incurred over qualifying expenditures for the base period,
5"qualifying expenditures for the base period" means the average
6of the qualifying expenditures for each year in the base
7period, and "base period" means the 3 taxable years immediately
8preceding the taxable year for which the determination is being
9made.
10    Any credit in excess of the tax liability for the taxable
11year may be carried forward. A taxpayer may elect to have the
12unused credit shown on its final completed return carried over
13as a credit against the tax liability for the following 5
14taxable years or until it has been fully used, whichever occurs
15first; provided that no credit earned in a tax year ending
16prior to December 31, 2003 may be carried forward to any year
17ending on or after December 31, 2003, and no credit may be
18carried forward to any taxable year ending on or after January
191, 2011.
20    If an unused credit is carried forward to a given year from
212 or more earlier years, that credit arising in the earliest
22year will be applied first against the tax liability for the
23given year. If a tax liability for the given year still
24remains, the credit from the next earliest year will then be
25applied, and so on, until all credits have been used or no tax
26liability for the given year remains. Any remaining unused

 

 

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1credit or credits then will be carried forward to the next
2following year in which a tax liability is incurred, except
3that no credit can be carried forward to a year which is more
4than 5 years after the year in which the expense for which the
5credit is given was incurred.
6    No inference shall be drawn from this amendatory Act of the
791st General Assembly in construing this Section for taxable
8years beginning before January 1, 1999.
9    (l) Environmental Remediation Tax Credit.
10        (i) For tax years ending after December 31, 1997 and on
11    or before December 31, 2001, a taxpayer shall be allowed a
12    credit against the tax imposed by subsections (a) and (b)
13    of this Section for certain amounts paid for unreimbursed
14    eligible remediation costs, as specified in this
15    subsection. For purposes of this Section, "unreimbursed
16    eligible remediation costs" means costs approved by the
17    Illinois Environmental Protection Agency ("Agency") under
18    Section 58.14 of the Environmental Protection Act that were
19    paid in performing environmental remediation at a site for
20    which a No Further Remediation Letter was issued by the
21    Agency and recorded under Section 58.10 of the
22    Environmental Protection Act. The credit must be claimed
23    for the taxable year in which Agency approval of the
24    eligible remediation costs is granted. The credit is not
25    available to any taxpayer if the taxpayer or any related
26    party caused or contributed to, in any material respect, a

 

 

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1    release of regulated substances on, in, or under the site
2    that was identified and addressed by the remedial action
3    pursuant to the Site Remediation Program of the
4    Environmental Protection Act. After the Pollution Control
5    Board rules are adopted pursuant to the Illinois
6    Administrative Procedure Act for the administration and
7    enforcement of Section 58.9 of the Environmental
8    Protection Act, determinations as to credit availability
9    for purposes of this Section shall be made consistent with
10    those rules. For purposes of this Section, "taxpayer"
11    includes a person whose tax attributes the taxpayer has
12    succeeded to under Section 381 of the Internal Revenue Code
13    and "related party" includes the persons disallowed a
14    deduction for losses by paragraphs (b), (c), and (f)(1) of
15    Section 267 of the Internal Revenue Code by virtue of being
16    a related taxpayer, as well as any of its partners. The
17    credit allowed against the tax imposed by subsections (a)
18    and (b) shall be equal to 25% of the unreimbursed eligible
19    remediation costs in excess of $100,000 per site, except
20    that the $100,000 threshold shall not apply to any site
21    contained in an enterprise zone as determined by the
22    Department of Commerce and Community Affairs (now
23    Department of Commerce and Economic Opportunity). The
24    total credit allowed shall not exceed $40,000 per year with
25    a maximum total of $150,000 per site. For partners and
26    shareholders of subchapter S corporations, there shall be

 

 

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1    allowed a credit under this subsection to be determined in
2    accordance with the determination of income and
3    distributive share of income under Sections 702 and 704 and
4    subchapter S of the Internal Revenue Code.
5        (ii) A credit allowed under this subsection that is
6    unused in the year the credit is earned may be carried
7    forward to each of the 5 taxable years following the year
8    for which the credit is first earned until it is used. The
9    term "unused credit" does not include any amounts of
10    unreimbursed eligible remediation costs in excess of the
11    maximum credit per site authorized under paragraph (i).
12    This credit shall be applied first to the earliest year for
13    which there is a liability. If there is a credit under this
14    subsection from more than one tax year that is available to
15    offset a liability, the earliest credit arising under this
16    subsection shall be applied first. A credit allowed under
17    this subsection may be sold to a buyer as part of a sale of
18    all or part of the remediation site for which the credit
19    was granted. The purchaser of a remediation site and the
20    tax credit shall succeed to the unused credit and remaining
21    carry-forward period of the seller. To perfect the
22    transfer, the assignor shall record the transfer in the
23    chain of title for the site and provide written notice to
24    the Director of the Illinois Department of Revenue of the
25    assignor's intent to sell the remediation site and the
26    amount of the tax credit to be transferred as a portion of

 

 

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1    the sale. In no event may a credit be transferred to any
2    taxpayer if the taxpayer or a related party would not be
3    eligible under the provisions of subsection (i).
4        (iii) For purposes of this Section, the term "site"
5    shall have the same meaning as under Section 58.2 of the
6    Environmental Protection Act.
7    (m) Education expense credit. Beginning with tax years
8ending after December 31, 1999, a taxpayer who is the custodian
9of one or more qualifying pupils shall be allowed a credit
10against the tax imposed by subsections (a) and (b) of this
11Section for qualified education expenses incurred on behalf of
12the qualifying pupils. The credit shall be equal to 25% of
13qualified education expenses, but in no event may the total
14credit under this subsection claimed by a family that is the
15custodian of qualifying pupils exceed $500. In no event shall a
16credit under this subsection reduce the taxpayer's liability
17under this Act to less than zero. This subsection is exempt
18from the provisions of Section 250 of this Act.
19    For purposes of this subsection:
20    "Qualifying pupils" means individuals who (i) are
21residents of the State of Illinois, (ii) are under the age of
2221 at the close of the school year for which a credit is
23sought, and (iii) during the school year for which a credit is
24sought were full-time pupils enrolled in a kindergarten through
25twelfth grade education program at any school, as defined in
26this subsection.

 

 

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1    "Qualified education expense" means the amount incurred on
2behalf of a qualifying pupil in excess of $250 for tuition,
3book fees, and lab fees at the school in which the pupil is
4enrolled during the regular school year.
5    "School" means any public or nonpublic elementary or
6secondary school in Illinois that is in compliance with Title
7VI of the Civil Rights Act of 1964 and attendance at which
8satisfies the requirements of Section 26-1 of the School Code,
9except that nothing shall be construed to require a child to
10attend any particular public or nonpublic school to qualify for
11the credit under this Section.
12    "Custodian" means, with respect to qualifying pupils, an
13Illinois resident who is a parent, the parents, a legal
14guardian, or the legal guardians of the qualifying pupils.
15    (n) River Edge Redevelopment Zone site remediation tax
16credit.
17        (i) For tax years ending on or after December 31, 2006,
18    a taxpayer shall be allowed a credit against the tax
19    imposed by subsections (a) and (b) of this Section for
20    certain amounts paid for unreimbursed eligible remediation
21    costs, as specified in this subsection. For purposes of
22    this Section, "unreimbursed eligible remediation costs"
23    means costs approved by the Illinois Environmental
24    Protection Agency ("Agency") under Section 58.14a of the
25    Environmental Protection Act that were paid in performing
26    environmental remediation at a site within a River Edge

 

 

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1    Redevelopment Zone for which a No Further Remediation
2    Letter was issued by the Agency and recorded under Section
3    58.10 of the Environmental Protection Act. The credit must
4    be claimed for the taxable year in which Agency approval of
5    the eligible remediation costs is granted. The credit is
6    not available to any taxpayer if the taxpayer or any
7    related party caused or contributed to, in any material
8    respect, a release of regulated substances on, in, or under
9    the site that was identified and addressed by the remedial
10    action pursuant to the Site Remediation Program of the
11    Environmental Protection Act. Determinations as to credit
12    availability for purposes of this Section shall be made
13    consistent with rules adopted by the Pollution Control
14    Board pursuant to the Illinois Administrative Procedure
15    Act for the administration and enforcement of Section 58.9
16    of the Environmental Protection Act. For purposes of this
17    Section, "taxpayer" includes a person whose tax attributes
18    the taxpayer has succeeded to under Section 381 of the
19    Internal Revenue Code and "related party" includes the
20    persons disallowed a deduction for losses by paragraphs
21    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
22    Code by virtue of being a related taxpayer, as well as any
23    of its partners. The credit allowed against the tax imposed
24    by subsections (a) and (b) shall be equal to 25% of the
25    unreimbursed eligible remediation costs in excess of
26    $100,000 per site.

 

 

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1        (ii) A credit allowed under this subsection that is
2    unused in the year the credit is earned may be carried
3    forward to each of the 5 taxable years following the year
4    for which the credit is first earned until it is used. This
5    credit shall be applied first to the earliest year for
6    which there is a liability. If there is a credit under this
7    subsection from more than one tax year that is available to
8    offset a liability, the earliest credit arising under this
9    subsection shall be applied first. A credit allowed under
10    this subsection may be sold to a buyer as part of a sale of
11    all or part of the remediation site for which the credit
12    was granted. The purchaser of a remediation site and the
13    tax credit shall succeed to the unused credit and remaining
14    carry-forward period of the seller. To perfect the
15    transfer, the assignor shall record the transfer in the
16    chain of title for the site and provide written notice to
17    the Director of the Illinois Department of Revenue of the
18    assignor's intent to sell the remediation site and the
19    amount of the tax credit to be transferred as a portion of
20    the sale. In no event may a credit be transferred to any
21    taxpayer if the taxpayer or a related party would not be
22    eligible under the provisions of subsection (i).
23        (iii) For purposes of this Section, the term "site"
24    shall have the same meaning as under Section 58.2 of the
25    Environmental Protection Act.
26        (iv) This subsection is exempt from the provisions of

 

 

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1    Section 250.
2(Source: P.A. 95-454, eff. 8-27-07; 96-115, eff. 7-31-09;
396-116, eff. 7-31-09; 96-937, eff. 6-23-10; 96-1000, eff.
47-2-10.)
 
5    Section 90-23. The Property Tax Code is amended by adding
6Section 15-144 as follows:
 
7    (35 ILCS 200/15-144 new)
8    Sec. 15-144. Chicago Casino Development Authority. All
9property owned by the Chicago Casino Development Authority is
10exempt. Any property owned by the Chicago Casino Development
11Authority and leased to an entity that is not exempt shall
12remain exempt so long as it is used for a public purpose.
 
13    Section 90-25. The Joliet Regional Port District Act is
14amended by changing Section 5.1 as follows:
 
15    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
16    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
17any other provision of this Act, the District may not regulate
18the operation, conduct, or navigation of any riverboat gambling
19casino licensed under the Illinois Riverboat Gambling Act, and
20the District may not license, tax, or otherwise levy any
21assessment of any kind on any riverboat gambling casino
22licensed under the Illinois Riverboat Gambling Act. The General

 

 

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1Assembly declares that the powers to regulate the operation,
2conduct, and navigation of riverboat gambling casinos and to
3license, tax, and levy assessments upon riverboat gambling
4casinos are exclusive powers of the State of Illinois and the
5Illinois Gaming Board as provided in the Illinois Riverboat
6Gambling Act.
7(Source: P.A. 87-1175.)
 
8    Section 90-30. The Consumer Installment Loan Act is amended
9by changing Section 12.5 as follows:
 
10    (205 ILCS 670/12.5)
11    Sec. 12.5. Limited purpose branch.
12    (a) Upon the written approval of the Director, a licensee
13may maintain a limited purpose branch for the sole purpose of
14making loans as permitted by this Act. A limited purpose branch
15may include an automatic loan machine. No other activity shall
16be conducted at the site, including but not limited to,
17accepting payments, servicing the accounts, or collections.
18    (b) The licensee must submit an application for a limited
19purpose branch to the Director on forms prescribed by the
20Director with an application fee of $300. The approval for the
21limited purpose branch must be renewed concurrently with the
22renewal of the licensee's license along with a renewal fee of
23$300 for the limited purpose branch.
24    (c) The books, accounts, records, and files of the limited

 

 

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1purpose branch's transactions shall be maintained at the
2licensee's licensed location. The licensee shall notify the
3Director of the licensed location at which the books, accounts,
4records, and files shall be maintained.
5    (d) The licensee shall prominently display at the limited
6purpose branch the address and telephone number of the
7licensee's licensed location.
8    (e) No other business shall be conducted at the site of the
9limited purpose branch unless authorized by the Director.
10    (f) The Director shall make and enforce reasonable rules
11for the conduct of a limited purpose branch.
12    (g) A limited purpose branch may not be located within
131,000 feet of a facility operated by an inter-track wagering
14licensee or an organization licensee subject to the Illinois
15Horse Racing Act of 1975, on a riverboat or in a casino subject
16to the Illinois Riverboat Gambling Act, or within 1,000 feet of
17the location at which the riverboat docks or within 1,000 feet
18of a casino.
19(Source: P.A. 90-437, eff. 1-1-98.)
 
20    Section 90-35. The Illinois Horse Racing Act of 1975 is
21amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 15.1,
2218, 19, 20, 24, 26, 27, 28, 28.1, 30, 30.5, 31, 31.1, 32.1, 36,
23and 40 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
2434.3, and 56 as follows:
 

 

 

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1    (230 ILCS 5/1.2)
2    Sec. 1.2. Legislative intent. This Act is intended to
3benefit the people of the State of Illinois by encouraging the
4breeding and production of race horses, assisting economic
5development and promoting Illinois tourism. The General
6Assembly finds and declares it to be the public policy of the
7State of Illinois to:
8    (a) support and enhance Illinois' horse racing industry,
9which is a significant component within the agribusiness
10industry;
11    (b) ensure that Illinois' horse racing industry remains
12competitive with neighboring states;
13    (c) stimulate growth within Illinois' horse racing
14industry, thereby encouraging new investment and development
15to produce additional tax revenues and to create additional
16jobs;
17    (d) promote the further growth of tourism;
18    (e) encourage the breeding of thoroughbred and
19standardbred horses in this State; and
20    (f) ensure that public confidence and trust in the
21credibility and integrity of racing operations and the
22regulatory process is maintained.
23(Source: P.A. 91-40, eff. 6-25-99.)
 
24    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
25    Sec. 3.11. "Organization Licensee" means any person

 

 

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1receiving an organization license from the Board to conduct a
2race meeting or meetings. With respect only to electronic
3gaming, "organization licensee" includes the authorization for
4an electronic gaming license under subsection (a) of Section 56
5of this Act.
6(Source: P.A. 79-1185.)
 
7    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
8    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
9system of wagering" means a form of wagering on the outcome of
10horse races in which wagers are made in various denominations
11on a horse or horses and all wagers for each race are pooled
12and held by a licensee for distribution in a manner approved by
13the Board. "Pari-mutuel system of wagering" shall not include
14wagering on historic races. Wagers may be placed via any method
15or at any location authorized under this Act.
16(Source: P.A. 96-762, eff. 8-25-09.)
 
17    (230 ILCS 5/3.31 new)
18    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
19receipts" means the gross receipts less winnings paid to
20wagerers.
 
21    (230 ILCS 5/3.32 new)
22    Sec. 3.32. Gross receipts. "Gross receipts" means the total
23amount of money exchanged for the purchase of chips, tokens, or

 

 

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1electronic cards by riverboat or casino patrons or electronic
2gaming patrons.
 
3    (230 ILCS 5/3.33 new)
4    Sec. 3.33. Electronic gaming. "Electronic gaming" means
5slot machine gambling, video game of chance gambling, or
6gambling with electronic gambling games as defined in the
7Illinois Gambling Act or defined by the Illinois Gaming Board
8that is conducted at a race track pursuant to an electronic
9gaming license.
 
10    (230 ILCS 5/3.35 new)
11    Sec. 3.35. Electronic gaming license. "Electronic gaming
12license" means a license issued by the Illinois Gaming Board
13under Section 7.6 of the Illinois Gambling Act authorizing
14electronic gaming at an electronic gaming facility.
 
15    (230 ILCS 5/3.36 new)
16    Sec. 3.36. Electronic gaming facility. "Electronic gaming
17facility" means that portion of an organization licensee's race
18track facility at which electronic gaming is conducted.
 
19    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
20    Sec. 6. Restrictions on Board members.
21    (a) No person shall be appointed a member of the Board or
22continue to be a member of the Board if the person or any

 

 

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1member of their immediate family is a member of the Board of
2Directors, employee, or financially interested in any of the
3following: (i) any licensee or other person who has applied for
4racing dates to the Board, or the operations thereof including,
5but not limited to, concessions, data processing, track
6maintenance, track security, and pari-mutuel operations,
7located, scheduled or doing business within the State of
8Illinois, (ii) any licensee or other person in any race horse
9competing at a meeting under the Board's jurisdiction, or (iii)
10any licensee under the Illinois Gambling Act. No person shall
11be appointed a member of the Board or continue to be a member
12of the Board who is (or any member of whose family is) a member
13of the Board of Directors of, or who is a person financially
14interested in, any licensee or other person who has applied for
15racing dates to the Board, or the operations thereof including,
16but not limited to, concessions, data processing, track
17maintenance, track security and pari-mutuel operations,
18located, scheduled or doing business within the State of
19Illinois, or in any race horse competing at a meeting under the
20Board's jurisdiction. No Board member shall hold any other
21public office for which he shall receive compensation other
22than necessary travel or other incidental expenses.
23    (b) No person shall be a member of the Board who is not of
24good moral character or who has been convicted of, or is under
25indictment for, a felony under the laws of Illinois or any
26other state, or the United States.

 

 

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1    (c) No member of the Board or employee shall engage in any
2political activity. For the purposes of this Section,
3"political" means any activity in support of or in connection
4with any campaign for State or local elective office or any
5political organization, but does not include activities (i)
6relating to the support or opposition of any executive,
7legislative, or administrative action (as those terms are
8defined in Section 2 of the Lobbyist Registration Act), (ii)
9relating to collective bargaining, or (iii) that are otherwise
10in furtherance of the person's official State duties or
11governmental and public service functions.
12    (d) Board members and employees may not engage in
13communications or any activity that may cause or have the
14appearance of causing a conflict of interest. A conflict of
15interest exists if a situation influences or creates the
16appearance that it may influence judgment or performance of
17regulatory duties and responsibilities. This prohibition shall
18extend to any act identified by Board action that, in the
19judgment of the Board, could represent the potential for or the
20appearance of a conflict of interest.
21    (e) Board members and employees may not accept any gift,
22gratuity, service, compensation, travel, lodging, or thing of
23value, with the exception of unsolicited items of an incidental
24nature, from any person, corporation, or entity doing business
25with the Board.
26    (f) A Board member or employee shall not use or attempt to

 

 

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1use his or her official position to secure, or attempt to
2secure, any privilege, advantage, favor, or influence for
3himself or herself or others. No Board member or employee,
4within a period of one year immediately preceding nomination by
5the Governor or employment, shall have been employed or
6received compensation or fees for services from a person or
7entity, or its parent or affiliate, that has engaged in
8business with the Board, a licensee or a licensee under the
9Illinois Gambling Act. In addition, no Board member or employee
10shall for one year after the expiration of his or her term or
11separation from the Board be employed or receive compensation
12or fees from the before-mentioned persons or entities.
13(Source: P.A. 89-16, eff. 5-30-95.)
 
14    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
15    Sec. 9. The Board shall have all powers necessary and
16proper to fully and effectively execute the provisions of this
17Act, including, but not limited to, the following:
18    (a) The Board is vested with jurisdiction and supervision
19over all race meetings in this State, over all licensees doing
20business in this State, over all occupation licensees, and over
21all persons on the facilities of any licensee. Such
22jurisdiction shall include the power to issue licenses to the
23Illinois Department of Agriculture authorizing the pari-mutuel
24system of wagering on harness and Quarter Horse races held (1)
25at the Illinois State Fair in Sangamon County, and (2) at the

 

 

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1DuQuoin State Fair in Perry County. The jurisdiction of the
2Board shall also include the power to issue licenses to county
3fairs which are eligible to receive funds pursuant to the
4Agricultural Fair Act, as now or hereafter amended, or their
5agents, authorizing the pari-mutuel system of wagering on horse
6races conducted at the county fairs receiving such licenses.
7Such licenses shall be governed by subsection (n) of this
8Section.
9    Upon application, the Board shall issue a license to the
10Illinois Department of Agriculture to conduct harness and
11Quarter Horse races at the Illinois State Fair and at the
12DuQuoin State Fairgrounds during the scheduled dates of each
13fair. The Board shall not require and the Department of
14Agriculture shall be exempt from the requirements of Sections
1515.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
16(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
17and 25. The Board and the Department of Agriculture may extend
18any or all of these exemptions to any contractor or agent
19engaged by the Department of Agriculture to conduct its race
20meetings when the Board determines that this would best serve
21the public interest and the interest of horse racing.
22    Notwithstanding any provision of law to the contrary, it
23shall be lawful for any licensee to operate pari-mutuel
24wagering or contract with the Department of Agriculture to
25operate pari-mutuel wagering at the DuQuoin State Fairgrounds
26or for the Department to enter into contracts with a licensee,

 

 

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1employ its owners, employees or agents and employ such other
2occupation licensees as the Department deems necessary in
3connection with race meetings and wagerings.
4    (b) The Board is vested with the full power to promulgate
5reasonable rules and regulations for the purpose of
6administering the provisions of this Act and to prescribe
7reasonable rules, regulations and conditions under which all
8horse race meetings or wagering in the State shall be
9conducted. Such reasonable rules and regulations are to provide
10for the prevention of practices detrimental to the public
11interest and to promote the best interests of horse racing and
12to impose penalties for violations thereof.
13    (c) The Board, and any person or persons to whom it
14delegates this power, is vested with the power to enter the
15facilities and other places of business of any licensee to
16determine whether there has been compliance with the provisions
17of this Act and its rules and regulations.
18    (d) The Board, and any person or persons to whom it
19delegates this power, is vested with the authority to
20investigate alleged violations of the provisions of this Act,
21its reasonable rules and regulations, orders and final
22decisions; the Board shall take appropriate disciplinary
23action against any licensee or occupation licensee for
24violation thereof or institute appropriate legal action for the
25enforcement thereof.
26    (e) The Board, and any person or persons to whom it

 

 

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1delegates this power, may eject or exclude from any race
2meeting or the facilities of any licensee, or any part thereof,
3any occupation licensee or any other individual whose conduct
4or reputation is such that his presence on those facilities
5may, in the opinion of the Board, call into question the
6honesty and integrity of horse racing or wagering or interfere
7with the orderly conduct of horse racing or wagering; provided,
8however, that no person shall be excluded or ejected from the
9facilities of any licensee solely on the grounds of race,
10color, creed, national origin, ancestry, or sex. The power to
11eject or exclude an occupation licensee or other individual may
12be exercised for just cause by the licensee or the Board,
13subject to subsequent hearing by the Board as to the propriety
14of said exclusion.
15    (f) The Board is vested with the power to acquire,
16establish, maintain and operate (or provide by contract to
17maintain and operate) testing laboratories and related
18facilities, for the purpose of conducting saliva, blood, urine
19and other tests on the horses run or to be run in any horse race
20meeting, including races run at county fairs, and to purchase
21all equipment and supplies deemed necessary or desirable in
22connection with any such testing laboratories and related
23facilities and all such tests.
24    (g) The Board may require that the records, including
25financial or other statements of any licensee or any person
26affiliated with the licensee who is involved directly or

 

 

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1indirectly in the activities of any licensee as regulated under
2this Act to the extent that those financial or other statements
3relate to such activities be kept in such manner as prescribed
4by the Board, and that Board employees shall have access to
5those records during reasonable business hours. Within 120 days
6of the end of its fiscal year, each licensee shall transmit to
7the Board an audit of the financial transactions and condition
8of the licensee's total operations. All audits shall be
9conducted by certified public accountants. Each certified
10public accountant must be registered in the State of Illinois
11under the Illinois Public Accounting Act. The compensation for
12each certified public accountant shall be paid directly by the
13licensee to the certified public accountant. A licensee shall
14also submit any other financial or related information the
15Board deems necessary to effectively administer this Act and
16all rules, regulations, and final decisions promulgated under
17this Act.
18    (h) The Board shall name and appoint in the manner provided
19by the rules and regulations of the Board: an Executive
20Director; a State director of mutuels; State veterinarians and
21representatives to take saliva, blood, urine and other tests on
22horses; licensing personnel; revenue inspectors; and State
23seasonal employees (excluding admission ticket sellers and
24mutuel clerks). All of those named and appointed as provided in
25this subsection shall serve during the pleasure of the Board;
26their compensation shall be determined by the Board and be paid

 

 

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1in the same manner as other employees of the Board under this
2Act.
3    (i) The Board shall require that there shall be 3 stewards
4at each horse race meeting, at least 2 of whom shall be named
5and appointed by the Board. Stewards appointed or approved by
6the Board, while performing duties required by this Act or by
7the Board, shall be entitled to the same rights and immunities
8as granted to Board members and Board employees in Section 10
9of this Act.
10    (j) The Board may discharge any Board employee who fails or
11refuses for any reason to comply with the rules and regulations
12of the Board, or who, in the opinion of the Board, is guilty of
13fraud, dishonesty or who is proven to be incompetent. The Board
14shall have no right or power to determine who shall be
15officers, directors or employees of any licensee, or their
16salaries except the Board may, by rule, require that all or any
17officials or employees in charge of or whose duties relate to
18the actual running of races be approved by the Board.
19    (k) The Board is vested with the power to appoint delegates
20to execute any of the powers granted to it under this Section
21for the purpose of administering this Act and any rules or
22regulations promulgated in accordance with this Act.
23    (l) The Board is vested with the power to impose civil
24penalties of up to $5,000 against an individual and up to
25$10,000 against a licensee for each violation of any provision
26of this Act, any rules adopted by the Board, any order of the

 

 

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

 

 

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1responsibilities, then, upon request and payment of fees in
2conformance with the requirements of Section 2605-400 of the
3Department of State Police Law (20 ILCS 2605/2605-400), the
4Department of State Police is authorized to furnish, pursuant
5to positive identification, such information contained in
6State files as is necessary to fulfill the request.
7    (p) To insure the convenience, comfort, and wagering
8accessibility of race track patrons, to provide for the
9maximization of State revenue, and to generate increases in
10purse allotments to the horsemen, the Board shall require any
11licensee to staff the pari-mutuel department with adequate
12personnel.
13(Source: P.A. 91-239, eff. 1-1-00.)
 
14    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
15    Sec. 15. (a) The Board shall, in its discretion, issue
16occupation licenses to horse owners, trainers, harness
17drivers, jockeys, agents, apprentices, grooms, stable foremen,
18exercise persons, veterinarians, valets, blacksmiths,
19concessionaires and others designated by the Board whose work,
20in whole or in part, is conducted upon facilities within the
21State. Such occupation licenses will be obtained prior to the
22persons engaging in their vocation upon such facilities. The
23Board shall not license pari-mutuel clerks, parking
24attendants, security guards and employees of concessionaires.
25No occupation license shall be required of any person who works

 

 

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1at facilities within this State as a pari-mutuel clerk, parking
2attendant, security guard or as an employee of a
3concessionaire. Concessionaires of the Illinois State Fair and
4DuQuoin State Fair and employees of the Illinois Department of
5Agriculture shall not be required to obtain an occupation
6license by the Board.
7    (b) Each application for an occupation license shall be on
8forms prescribed by the Board. Such license, when issued, shall
9be for the period ending December 31 of each year, except that
10the Board in its discretion may grant 3-year licenses. The
11application shall be accompanied by a fee of not more than $25
12per year or, in the case of 3-year occupation license
13applications, a fee of not more than $60. Each applicant shall
14set forth in the application his full name and address, and if
15he had been issued prior occupation licenses or has been
16licensed in any other state under any other name, such name,
17his age, whether or not a permit or license issued to him in
18any other state has been suspended or revoked and if so whether
19such suspension or revocation is in effect at the time of the
20application, and such other information as the Board may
21require. Fees for registration of stable names shall not exceed
22$50.00.
23    (c) The Board may in its discretion refuse an occupation
24license to any person:
25        (1) who has been convicted of a crime;
26        (2) who is unqualified to perform the duties required

 

 

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1    of such applicant;
2        (3) who fails to disclose or states falsely any
3    information called for in the application;
4        (4) who has been found guilty of a violation of this
5    Act or of the rules and regulations of the Board; or
6        (5) whose license or permit has been suspended, revoked
7    or denied for just cause in any other state.
8    (d) The Board may suspend or revoke any occupation license:
9        (1) for violation of any of the provisions of this Act;
10    or
11        (2) for violation of any of the rules or regulations of
12    the Board; or
13        (3) for any cause which, if known to the Board, would
14    have justified the Board in refusing to issue such
15    occupation license; or
16        (4) for any other just cause.
17    (e)   Each applicant shall submit his or her fingerprints
18to the Department of State Police in the form and manner
19prescribed by the Department of State Police. These
20fingerprints shall be checked against the fingerprint records
21now and hereafter filed in the Department of State Police and
22Federal Bureau of Investigation criminal history records
23databases. The Department of State Police shall charge a fee
24for conducting the criminal history records check, which shall
25be deposited in the State Police Services Fund and shall not
26exceed the actual cost of the records check. The Department of

 

 

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1State Police shall furnish, pursuant to positive
2identification, records of conviction to the Board. Each
3applicant for licensure shall submit with his occupation
4license application, on forms provided by the Board, 2 sets of
5his fingerprints. All such applicants shall appear in person at
6the location designated by the Board for the purpose of
7submitting such sets of fingerprints; however, with the prior
8approval of a State steward, an applicant may have such sets of
9fingerprints taken by an official law enforcement agency and
10submitted to the Board.
11    (f) The Board may, in its discretion, issue an occupation
12license without submission of fingerprints if an applicant has
13been duly licensed in another recognized racing jurisdiction
14after submitting fingerprints that were subjected to a Federal
15Bureau of Investigation criminal history background check in
16that jurisdiction.
17(Source: P.A. 93-418, eff. 1-1-04.)
 
18    (230 ILCS 5/15.1)  (from Ch. 8, par. 37-15.1)
19    Sec. 15.1. Upon collection of the fee accompanying the
20application for an occupation license, the Board shall be
21authorized to make daily temporary deposits of the fees, for a
22period not to exceed 7 days, with the horsemen's bookkeeper at
23a race meeting. The horsemen's bookkeeper shall issue a check,
24payable to the order of the Illinois Racing Board, for monies
25deposited under this Section within 24 hours of receipt of the

 

 

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1monies. Provided however, upon the issuance of the check by the
2horsemen's bookkeeper the check shall be deposited into the
3Horse Racing Fund in the State Treasury in accordance with the
4provisions of the "State Officers and Employees Money
5Disposition Act", approved June 9, 1911, as amended.
6(Source: P.A. 84-432.)
 
7    (230 ILCS 5/18)  (from Ch. 8, par. 37-18)
8    Sec. 18. (a) Together with its application, each applicant
9for racing dates shall deliver to the Board a certified check
10or bank draft payable to the order of the Board for $1,000. In
11the event the applicant applies for racing dates in 2 or 3
12successive calendar years as provided in subsection (b) of
13Section 21, the fee shall be $2,000. Filing fees shall not be
14refunded in the event the application is denied. All filing
15fees shall be deposited into the Horse Racing Fund.
16    (b) In addition to the filing fee of $1000 and the fees
17provided in subsection (j) of Section 20, each organization
18licensee shall pay a license fee of $100 for each racing
19program on which its daily pari-mutuel handle is $400,000 or
20more but less than $700,000, and a license fee of $200 for each
21racing program on which its daily pari-mutuel handle is
22$700,000 or more. The additional fees required to be paid under
23this Section by this amendatory Act of 1982 shall be remitted
24by the organization licensee to the Illinois Racing Board with
25each day's graduated privilege tax or pari-mutuel tax and

 

 

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1breakage as provided under Section 27.
2    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
3Municipal Code," approved May 29, 1961, as now or hereafter
4amended, shall not apply to any license under this Act.
5(Source: P.A. 91-40, eff. 6-25-99.)
 
6    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
7    Sec. 19. (a) No organization license may be granted to
8conduct a horse race meeting:
9        (1) except as provided in subsection (c) of Section 21
10    of this Act, to any person at any place within 35 miles of
11    any other place licensed by the Board to hold a race
12    meeting on the same date during the same hours, the mileage
13    measurement used in this subsection (a) shall be certified
14    to the Board by the Bureau of Systems and Services in the
15    Illinois Department of Transportation as the most commonly
16    used public way of vehicular travel;
17        (2) to any person in default in the payment of any
18    obligation or debt due the State under this Act, provided
19    no applicant shall be deemed in default in the payment of
20    any obligation or debt due to the State under this Act as
21    long as there is pending a hearing of any kind relevant to
22    such matter;
23        (3) to any person who has been convicted of the
24    violation of any law of the United States or any State law
25    which provided as all or part of its penalty imprisonment

 

 

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

 

 

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1directly or indirectly, by such ineligible person or by a
2person which controls, directly or indirectly, such ineligible
3person shall also be ineligible.
4(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
5    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
6    Sec. 20. (a) Any person desiring to conduct a horse race
7meeting may apply to the Board for an organization license. The
8application shall be made on a form prescribed and furnished by
9the Board. The application shall specify:
10        (1) the dates on which it intends to conduct the horse
11    race meeting, which dates shall be provided under Section
12    21;
13        (2) the hours of each racing day between which it
14    intends to hold or conduct horse racing at such meeting;
15        (3) the location where it proposes to conduct the
16    meeting; and
17        (4) any other information the Board may reasonably
18    require.
19    (b) A separate application for an organization license
20shall be filed for each horse race meeting which such person
21proposes to hold. Any such application, if made by an
22individual, or by any individual as trustee, shall be signed
23and verified under oath by such individual. If made by
24individuals or a partnership, it shall be signed and verified
25under oath by at least 2 of such individuals or members of such

 

 

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1partnership as the case may be. If made by an association,
2corporation, corporate trustee or any other entity, it shall be
3signed by the president and attested by the secretary or
4assistant secretary under the seal of such association, trust
5or corporation if it has a seal, and shall also be verified
6under oath by one of the signing officers.
7    (c) The application shall specify the name of the persons,
8association, trust, or corporation making such application and
9the post office address of the applicant; if the applicant is a
10trustee, the names and addresses of the beneficiaries; if a
11corporation, the names and post office addresses of all
12officers, stockholders and directors; or if such stockholders
13hold stock as a nominee or fiduciary, the names and post office
14addresses of these persons, partnerships, corporations, or
15trusts who are the beneficial owners thereof or who are
16beneficially interested therein; and if a partnership, the
17names and post office addresses of all partners, general or
18limited; if the applicant is a corporation, the name of the
19state of its incorporation shall be specified.
20    (d) The applicant shall execute and file with the Board a
21good faith affirmative action plan to recruit, train, and
22upgrade minorities in all classifications within the
23association.
24    (e) With such application there shall be delivered to the
25Board a certified check or bank draft payable to the order of
26the Board for an amount equal to $1,000. All applications for

 

 

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1the issuance of an organization license shall be filed with the
2Board before August 1 of the year prior to the year for which
3application is made and shall be acted upon by the Board at a
4meeting to be held on such date as shall be fixed by the Board
5during the last 15 days of September of such prior year. At
6such meeting, the Board shall announce the award of the racing
7meets, live racing schedule, and designation of host track to
8the applicants and its approval or disapproval of each
9application. No announcement shall be considered binding until
10a formal order is executed by the Board, which shall be
11executed no later than October 15 of that prior year. Absent
12the agreement of the affected organization licensees, the Board
13shall not grant overlapping race meetings to 2 or more tracks
14that are within 100 miles of each other to conduct the
15thoroughbred racing.
16    (e-1) In awarding standardbred racing dates for calendar
17year 2012 and thereafter, the Board shall award at least 310
18racing days, and each organization licensees shall average at
19least 12 races for each racing day awarded. The Board shall
20have the discretion to allocate those racing days among
21organization licensees requesting standardbred race dates.
22Once awarded by the Board, organization licensees awarded
23standardbred dates shall run at least 3,500 races in total
24during that calendar year.
25    (e-2) In awarding racing dates for calendar year 2012 and
26thereafter, the Board shall award racing dates and the

 

 

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1organization licensees shall run at least 2,500 thoroughbred
2races at Cook County race tracks and 700 thoroughbred races at
3a race track in Madison County each year. In awarding racing
4dates under this subsection (e-2), the Board shall have the
5discretion to allocate those racing dates among organization
6licensees.
7    (e-3) The Board shall ensure that each organization
8licensee shall individually run a sufficient number of races
9per year to qualify for an electronic gaming license under
10Section 7.6 of the Illinois Gambling Act.
11    (e-4) Notwithstanding the provisions of Section 7.6 of the
12Illinois Gambling Act, for each calendar year for which an
13electronic gaming licensee requests a number of live racing
14days under its organization license that is less than the
15number of days of live racing awarded in 2009 for its race
16track facility, the electronic gaming licensee may not conduct
17electronic gaming for the calendar year of such requested
18racing days. The number of days of live racing may be adjusted,
19on a year-by-year basis, because of weather or unsafe track
20conditions due to acts of God or an agreement between the
21organization licensee and the association representing the
22largest number of owners, trainers, or standardbred drivers who
23race horses at that organization licensee's racing meeting.
24    (e-5) In reviewing an application for the purpose of
25granting an organization license consistent with the best
26interests of the public and the sport of horse racing, the

 

 

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

 

 

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1    other standards for the issuance of an organization license
2    that the Board shall adopt by rule.
3    In granting organization licenses and allocating dates for
4horse race meetings, the Board shall have discretion to
5determine an overall schedule, including required simulcasts
6of Illinois races by host tracks that will, in its judgment, be
7conducive to the best interests of the public and the sport of
8horse racing.
9    (e-10) The Illinois Administrative Procedure Act shall
10apply to administrative procedures of the Board under this Act
11for the granting of an organization license, except that (1)
12notwithstanding the provisions of subsection (b) of Section
1310-40 of the Illinois Administrative Procedure Act regarding
14cross-examination, the Board may prescribe rules limiting the
15right of an applicant or participant in any proceeding to award
16an organization license to conduct cross-examination of
17witnesses at that proceeding where that cross-examination
18would unduly obstruct the timely award of an organization
19license under subsection (e) of Section 20 of this Act; (2) the
20provisions of Section 10-45 of the Illinois Administrative
21Procedure Act regarding proposals for decision are excluded
22under this Act; (3) notwithstanding the provisions of
23subsection (a) of Section 10-60 of the Illinois Administrative
24Procedure Act regarding ex parte communications, the Board may
25prescribe rules allowing ex parte communications with
26applicants or participants in a proceeding to award an

 

 

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

 

 

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

 

 

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1    (h) The Board shall send the applicant a copy of its
2formally executed order by certified mail addressed to the
3applicant at the address stated in his application, which
4notice shall be mailed within 5 days of the date the formal
5order is executed.
6    Each applicant notified shall, within 10 days after receipt
7of the final executed order of the Board awarding racing dates:
8        (1) file with the Board an acceptance of such award in
9    the form prescribed by the Board;
10        (2) pay to the Board an additional amount equal to $110
11    for each racing date awarded; and
12        (3) file with the Board the bonds required in Sections
13    21 and 25 at least 20 days prior to the first day of each
14    race meeting.
15Upon compliance with the provisions of paragraphs (1), (2), and
16(3) of this subsection (h), the applicant shall be issued an
17organization license.
18    If any applicant fails to comply with this Section or fails
19to pay the organization license fees herein provided, no
20organization license shall be issued to such applicant.
21(Source: P.A. 91-40, eff. 6-25-99; revised 9-16-10.)
 
22    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
23    Sec. 24. (a) No license shall be issued to or held by an
24organization licensee unless all of its officers, directors,
25and holders of ownership interests of at least 5% are first

 

 

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1approved by the Board. The Board shall not give approval of an
2organization license application to any person who has been
3convicted of or is under an indictment for a crime of moral
4turpitude or has violated any provision of the racing law of
5this State or any rules of the Board.
6    (b) An organization licensee must notify the Board within
710 days of any change in the holders of a direct or indirect
8interest in the ownership of the organization licensee. The
9Board may, after hearing, revoke the organization license of
10any person who registers on its books or knowingly permits a
11direct or indirect interest in the ownership of that person
12without notifying the Board of the name of the holder in
13interest within this period.
14    (c) In addition to the provisions of subsection (a) of this
15Section, no person shall be granted an organization license if
16any public official of the State or member of his or her family
17holds any ownership or financial interest, directly or
18indirectly, in the person.
19    (d) No person which has been granted an organization
20license to hold a race meeting shall give to any public
21official or member of his family, directly or indirectly, for
22or without consideration, any interest in the person. The Board
23shall, after hearing, revoke the organization license granted
24to a person which has violated this subsection.
25    (e) (Blank).
26    (f) No organization licensee or concessionaire or officer,

 

 

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1director or holder or controller of 5% or more legal or
2beneficial interest in any organization licensee or concession
3shall make any sort of gift or contribution that is prohibited
4under Article 10 of the State Officials and Employees Ethics
5Act of any kind or pay or give any money or other thing of value
6to any person who is a public official, or a candidate or
7nominee for public office if that payment or gift is prohibited
8under Article 10 of the State Officials and Employees Ethics
9Act.
10(Source: P.A. 89-16, eff. 5-30-95.)
 
11    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
12    Sec. 26. Wagering.
13    (a) Any licensee may conduct and supervise the pari-mutuel
14system of wagering, as defined in Section 3.12 of this Act, on
15horse races conducted by an Illinois organization licensee or
16conducted at a racetrack located in another state or country
17and televised in Illinois in accordance with subsection (g) of
18Section 26 of this Act. Subject to the prior consent of the
19Board, licensees may supplement any pari-mutuel pool in order
20to guarantee a minimum distribution. Such pari-mutuel method of
21wagering shall not, under any circumstances if conducted under
22the provisions of this Act, be held or construed to be
23unlawful, other statutes of this State to the contrary
24notwithstanding. Subject to rules for advance wagering
25promulgated by the Board, any licensee may accept wagers in

 

 

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

 

 

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

 

 

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

 

 

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1    (g) A host track may accept interstate simulcast wagers on
2horse races conducted in other states or countries and shall
3control the number of signals and types of breeds of racing in
4its simulcast program, subject to the disapproval of the Board.
5The Board may prohibit a simulcast program only if it finds
6that the simulcast program is clearly adverse to the integrity
7of racing. The host track simulcast program shall include the
8signal of live racing of all organization licensees. All
9non-host licensees and advance deposit wagering licensees
10shall carry the signal of and accept wagers on live racing of
11all organization licensees. Advance deposit wagering licensees
12shall not be permitted to accept out-of-state wagers on any
13Illinois signal provided pursuant to this Section without the
14approval and consent of the organization licensee providing the
15signal. Non-host licensees may carry the host track simulcast
16program and shall accept wagers on all races included as part
17of the simulcast program upon which wagering is permitted. All
18organization licensees shall provide their live signal to all
19advance deposit wagering licensees for a simulcast commission
20fee not to exceed 6% of the advance deposit wagering licensee's
21Illinois handle on the organization licensee's signal without
22prior approval by the Board. The Board may adopt rules under
23which it may permit simulcast commission fees in excess of 6%.
24The Board shall adopt rules limiting the interstate commission
25fees charged to an advance deposit wagering licensee. The Board
26shall adopt rules regarding advance deposit wagering on

 

 

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1interstate simulcast races that shall reflect, among other
2things, the General Assembly's desire to maximize revenues to
3the State, horsemen purses, and organizational licensees.
4However, organization licensees providing live signals
5pursuant to the requirements of this subsection (g) may
6petition the Board to withhold their live signals from an
7advance deposit wagering licensee if the organization licensee
8discovers and the Board finds reputable or credible information
9that the advance deposit wagering licensee is under
10investigation by another state or federal governmental agency,
11the advance deposit wagering licensee's license has been
12suspended in another state, or the advance deposit wagering
13licensee's license is in revocation proceedings in another
14state. The organization licensee's provision of their live
15signal to an advance deposit wagering licensee under this
16subsection (g) pertains to wagers placed from within Illinois.
17Advance deposit wagering licensees may place advance deposit
18wagering terminals at wagering facilities as a convenience to
19customers. The advance deposit wagering licensee shall not
20charge or collect any fee from purses for the placement of the
21advance deposit wagering terminals. The costs and expenses of
22the host track and non-host licensees associated with
23interstate simulcast wagering, other than the interstate
24commission fee, shall be borne by the host track and all
25non-host licensees incurring these costs. The interstate
26commission fee shall not exceed 5% of Illinois handle on the

 

 

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1interstate simulcast race or races without prior approval of
2the Board. The Board shall promulgate rules under which it may
3permit interstate commission fees in excess of 5%. The
4interstate commission fee and other fees charged by the sending
5racetrack, including, but not limited to, satellite decoder
6fees, shall be uniformly applied to the host track and all
7non-host licensees.
8    Notwithstanding any other provision of this Act, for a
9period of 3 years after the effective date of this amendatory
10Act of the 96th General Assembly, an organization licensee may
11maintain a system whereby advance deposit wagering may take
12place or an organization licensee, with the consent of the
13horsemen association representing the largest number of
14owners, trainers, jockeys, or standardbred drivers who race
15horses at that organization licensee's racing meeting, may
16contract with another person to carry out a system of advance
17deposit wagering. Such consent may not be unreasonably
18withheld. All advance deposit wagers placed from within
19Illinois must be placed through a Board-approved advance
20deposit wagering licensee; no other entity may accept an
21advance deposit wager from a person within Illinois. All
22advance deposit wagering is subject to any rules adopted by the
23Board. The Board may adopt rules necessary to regulate advance
24deposit wagering through the use of emergency rulemaking in
25accordance with Section 5-45 of the Illinois Administrative
26Procedure Act. The General Assembly finds that the adoption of

 

 

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1rules to regulate advance deposit wagering is deemed an
2emergency and necessary for the public interest, safety, and
3welfare. An advance deposit wagering licensee may retain all
4moneys as agreed to by contract with an organization licensee.
5Any moneys retained by the organization licensee from advance
6deposit wagering, not including moneys retained by the advance
7deposit wagering licensee, shall be paid 50% to the
8organization licensee's purse account and 50% to the
9organization licensee. If more than one breed races at the same
10race track facility, then the 50% of the moneys to be paid to
11an organization licensee's purse account shall be allocated
12among all organization licensees' purse accounts operating at
13that race track facility proportionately based on the actual
14number of host days that the Board grants to that breed at that
15race track facility in the current calendar year. To the extent
16any fees from advance deposit wagering conducted in Illinois
17for wagers in Illinois or other states have been placed in
18escrow or otherwise withheld from wagers pending a
19determination of the legality of advance deposit wagering, no
20action shall be brought to declare such wagers or the
21disbursement of any fees previously escrowed illegal.
22        (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
23    intertrack wagering licensee other than the host track may
24    supplement the host track simulcast program with
25    additional simulcast races or race programs, provided that
26    between January 1 and the third Friday in February of any

 

 

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1    year, inclusive, if no live thoroughbred racing is
2    occurring in Illinois during this period, only
3    thoroughbred races may be used for supplemental interstate
4    simulcast purposes. The Board shall withhold approval for a
5    supplemental interstate simulcast only if it finds that the
6    simulcast is clearly adverse to the integrity of racing. A
7    supplemental interstate simulcast may be transmitted from
8    an intertrack wagering licensee to its affiliated non-host
9    licensees. The interstate commission fee for a
10    supplemental interstate simulcast shall be paid by the
11    non-host licensee and its affiliated non-host licensees
12    receiving the simulcast.
13        (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
14    intertrack wagering licensee other than the host track may
15    receive supplemental interstate simulcasts only with the
16    consent of the host track, except when the Board finds that
17    the simulcast is clearly adverse to the integrity of
18    racing. Consent granted under this paragraph (2) to any
19    intertrack wagering licensee shall be deemed consent to all
20    non-host licensees. The interstate commission fee for the
21    supplemental interstate simulcast shall be paid by all
22    participating non-host licensees.
23        (3) Each licensee conducting interstate simulcast
24    wagering may retain, subject to the payment of all
25    applicable taxes and the purses, an amount not to exceed
26    17% of all money wagered. If any licensee conducts the

 

 

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1    pari-mutuel system wagering on races conducted at
2    racetracks in another state or country, each such race or
3    race program shall be considered a separate racing day for
4    the purpose of determining the daily handle and computing
5    the privilege tax of that daily handle as provided in
6    subsection (a) of Section 27. Until January 1, 2000, from
7    the sums permitted to be retained pursuant to this
8    subsection, each intertrack wagering location licensee
9    shall pay 1% of the pari-mutuel handle wagered on simulcast
10    wagering to the Horse Racing Tax Allocation Fund, subject
11    to the provisions of subparagraph (B) of paragraph (11) of
12    subsection (h) of Section 26 of this Act.
13        (4) A licensee who receives an interstate simulcast may
14    combine its gross or net pools with pools at the sending
15    racetracks pursuant to rules established by the Board. All
16    licensees combining their gross pools at a sending
17    racetrack shall adopt the take-out percentages of the
18    sending racetrack. A licensee may also establish a separate
19    pool and takeout structure for wagering purposes on races
20    conducted at race tracks outside of the State of Illinois.
21    The licensee may permit pari-mutuel wagers placed in other
22    states or countries to be combined with its gross or net
23    wagering pools or other wagering pools.
24        (5) After the payment of the interstate commission fee
25    (except for the interstate commission fee on a supplemental
26    interstate simulcast, which shall be paid by the host track

 

 

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1    and by each non-host licensee through the host-track) and
2    all applicable State and local taxes, except as provided in
3    subsection (g) of Section 27 of this Act, the remainder of
4    moneys retained from simulcast wagering pursuant to this
5    subsection (g), and Section 26.2 shall be divided as
6    follows:
7            (A) For interstate simulcast wagers made at a host
8        track, 50% to the host track and 50% to purses at the
9        host track.
10            (B) For wagers placed on interstate simulcast
11        races, supplemental simulcasts as defined in
12        subparagraphs (1) and (2), and separately pooled races
13        conducted outside of the State of Illinois made at a
14        non-host licensee, 25% to the host track, 25% to the
15        non-host licensee, and 50% to the purses at the host
16        track.
17        (6) Notwithstanding any provision in this Act to the
18    contrary, non-host licensees who derive their licenses
19    from a track located in a county with a population in
20    excess of 230,000 and that borders the Mississippi River
21    may receive supplemental interstate simulcast races at all
22    times subject to Board approval, which shall be withheld
23    only upon a finding that a supplemental interstate
24    simulcast is clearly adverse to the integrity of racing.
25        (7) Notwithstanding any provision of this Act to the
26    contrary, after payment of all applicable State and local

 

 

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1    taxes and interstate commission fees, non-host licensees
2    who derive their licenses from a track located in a county
3    with a population in excess of 230,000 and that borders the
4    Mississippi River shall retain 50% of the retention from
5    interstate simulcast wagers and shall pay 50% to purses at
6    the track from which the non-host licensee derives its
7    license as follows:
8            (A) Between January 1 and the third Friday in
9        February, inclusive, if no live thoroughbred racing is
10        occurring in Illinois during this period, when the
11        interstate simulcast is a standardbred race, the purse
12        share to its standardbred purse account;
13            (B) Between January 1 and the third Friday in
14        February, inclusive, if no live thoroughbred racing is
15        occurring in Illinois during this period, and the
16        interstate simulcast is a thoroughbred race, the purse
17        share to its interstate simulcast purse pool to be
18        distributed under paragraph (10) of this subsection
19        (g);
20            (C) Between January 1 and the third Friday in
21        February, inclusive, if live thoroughbred racing is
22        occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
23        the purse share from wagers made during this time
24        period to its thoroughbred purse account and between
25        6:30 p.m. and 6:30 a.m. the purse share from wagers
26        made during this time period to its standardbred purse

 

 

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1        accounts;
2            (D) Between the third Saturday in February and
3        December 31, when the interstate simulcast occurs
4        between the hours of 6:30 a.m. and 6:30 p.m., the purse
5        share to its thoroughbred purse account;
6            (E) Between the third Saturday in February and
7        December 31, when the interstate simulcast occurs
8        between the hours of 6:30 p.m. and 6:30 a.m., the purse
9        share to its standardbred purse account.
10        (7.1) Notwithstanding any other provision of this Act
11    to the contrary, if no standardbred racing is conducted at
12    a racetrack located in Madison County during any calendar
13    year beginning on or after January 1, 2002, all moneys
14    derived by that racetrack from simulcast wagering and
15    inter-track wagering that (1) are to be used for purses and
16    (2) are generated between the hours of 6:30 p.m. and 6:30
17    a.m. during that calendar year shall be paid as follows:
18            (A) If the licensee that conducts horse racing at
19        that racetrack requests from the Board at least as many
20        racing dates as were conducted in calendar year 2000,
21        80% shall be paid to its thoroughbred purse account;
22        and
23            (B) Twenty percent shall be deposited into the
24        Illinois Colt Stakes Purse Distribution Fund and shall
25        be paid to purses for standardbred races for Illinois
26        conceived and foaled horses conducted at any county

 

 

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1        fairgrounds. The moneys deposited into the Fund
2        pursuant to this subparagraph (B) shall be deposited
3        within 2 weeks after the day they were generated, shall
4        be in addition to and not in lieu of any other moneys
5        paid to standardbred purses under this Act, and shall
6        not be commingled with other moneys paid into that
7        Fund. The moneys deposited pursuant to this
8        subparagraph (B) shall be allocated as provided by the
9        Department of Agriculture, with the advice and
10        assistance of the Illinois Standardbred Breeders Fund
11        Advisory Board.
12        (7.2) Notwithstanding any other provision of this Act
13    to the contrary, if no thoroughbred racing is conducted at
14    a racetrack located in Madison County during any calendar
15    year beginning on or after January 1, 2002, all moneys
16    derived by that racetrack from simulcast wagering and
17    inter-track wagering that (1) are to be used for purses and
18    (2) are generated between the hours of 6:30 a.m. and 6:30
19    p.m. during that calendar year shall be deposited as
20    follows:
21            (A) If the licensee that conducts horse racing at
22        that racetrack requests from the Board at least as many
23        racing dates as were conducted in calendar year 2000,
24        80% shall be deposited into its standardbred purse
25        account; and
26            (B) Twenty percent shall be deposited into the

 

 

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

 

 

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1        purse account to be used for thoroughbred purses; and
2            (B) Twenty percent to the Illinois Colt Stakes
3        Purse Distribution Fund.
4        Failure to make the payment to the Illinois Colt Stakes
5    Purse Distribution Fund before January 1, 2002 shall result
6    in the immediate revocation of the licensee's organization
7    license, inter-track wagering license, and inter-track
8    wagering location license.
9        Moneys paid into the Illinois Colt Stakes Purse
10    Distribution Fund pursuant to this paragraph (7.3) shall be
11    paid to purses for standardbred races for Illinois
12    conceived and foaled horses conducted at any county
13    fairgrounds. Moneys paid into the Illinois Colt Stakes
14    Purse Distribution Fund pursuant to this paragraph (7.3)
15    shall be used as determined by the Department of
16    Agriculture, with the advice and assistance of the Illinois
17    Standardbred Breeders Fund Advisory Board, shall be in
18    addition to and not in lieu of any other moneys paid to
19    standardbred purses under this Act, and shall not be
20    commingled with any other moneys paid into that Fund.
21        (7.4) If live standardbred racing is conducted at a
22    racetrack located in Madison County at any time in calendar
23    year 2001 before the payment required under paragraph (7.3)
24    has been made, the organization licensee who is licensed to
25    conduct racing at that racetrack shall pay all moneys
26    derived by that racetrack from simulcast wagering and

 

 

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1    inter-track wagering during calendar years 2000 and 2001
2    that (1) are to be used for purses and (2) are generated
3    between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
4    2001 to the standardbred purse account at that racetrack to
5    be used for standardbred purses.
6        (8) Notwithstanding any provision in this Act to the
7    contrary, an organization licensee from a track located in
8    a county with a population in excess of 230,000 and that
9    borders the Mississippi River and its affiliated non-host
10    licensees shall not be entitled to share in any retention
11    generated on racing, inter-track wagering, or simulcast
12    wagering at any other Illinois wagering facility.
13        (8.1) Notwithstanding any provisions in this Act to the
14    contrary, if 2 organization licensees are conducting
15    standardbred race meetings concurrently between the hours
16    of 6:30 p.m. and 6:30 a.m., after payment of all applicable
17    State and local taxes and interstate commission fees, the
18    remainder of the amount retained from simulcast wagering
19    otherwise attributable to the host track and to host track
20    purses shall be split daily between the 2 organization
21    licensees and the purses at the tracks of the 2
22    organization licensees, respectively, based on each
23    organization licensee's share of the total live handle for
24    that day, provided that this provision shall not apply to
25    any non-host licensee that derives its license from a track
26    located in a county with a population in excess of 230,000

 

 

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1    and that borders the Mississippi River.
2        (9) (Blank).
3        (10) (Blank).
4        (11) (Blank).
5        (12) The Board shall have authority to compel all host
6    tracks to receive the simulcast of any or all races
7    conducted at the Springfield or DuQuoin State fairgrounds
8    and include all such races as part of their simulcast
9    programs.
10        (13) Notwithstanding any other provision of this Act,
11    in the event that the total Illinois pari-mutuel handle on
12    Illinois horse races at all wagering facilities in any
13    calendar year is less than 75% of the total Illinois
14    pari-mutuel handle on Illinois horse races at all such
15    wagering facilities for calendar year 1994, then each
16    wagering facility that has an annual total Illinois
17    pari-mutuel handle on Illinois horse races that is less
18    than 75% of the total Illinois pari-mutuel handle on
19    Illinois horse races at such wagering facility for calendar
20    year 1994, shall be permitted to receive, from any amount
21    otherwise payable to the purse account at the race track
22    with which the wagering facility is affiliated in the
23    succeeding calendar year, an amount equal to 2% of the
24    differential in total Illinois pari-mutuel handle on
25    Illinois horse races at the wagering facility between that
26    calendar year in question and 1994 provided, however, that

 

 

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1    a wagering facility shall not be entitled to any such
2    payment until the Board certifies in writing to the
3    wagering facility the amount to which the wagering facility
4    is entitled and a schedule for payment of the amount to the
5    wagering facility, based on: (i) the racing dates awarded
6    to the race track affiliated with the wagering facility
7    during the succeeding year; (ii) the sums available or
8    anticipated to be available in the purse account of the
9    race track affiliated with the wagering facility for purses
10    during the succeeding year; and (iii) the need to ensure
11    reasonable purse levels during the payment period. The
12    Board's certification shall be provided no later than
13    January 31 of the succeeding year. In the event a wagering
14    facility entitled to a payment under this paragraph (13) is
15    affiliated with a race track that maintains purse accounts
16    for both standardbred and thoroughbred racing, the amount
17    to be paid to the wagering facility shall be divided
18    between each purse account pro rata, based on the amount of
19    Illinois handle on Illinois standardbred and thoroughbred
20    racing respectively at the wagering facility during the
21    previous calendar year. Annually, the General Assembly
22    shall appropriate sufficient funds from the General
23    Revenue Fund to the Department of Agriculture for payment
24    into the thoroughbred and standardbred horse racing purse
25    accounts at Illinois pari-mutuel tracks. The amount paid to
26    each purse account shall be the amount certified by the

 

 

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1    Illinois Racing Board in January to be transferred from
2    each account to each eligible racing facility in accordance
3    with the provisions of this Section. Beginning in the
4    calendar year in which an organization licensee that is
5    eligible to receive payment under this paragraph (13)
6    begins to receive funds from electronic gaming, the amount
7    of the payment due to all wagering facilities licensed
8    under that organization licensee under this paragraph (13)
9    shall be the amount certified by the Board in January of
10    that year. An organization licensee and its related
11    wagering facilities shall no longer be able to receive
12    payments under this paragraph (13) beginning in the year
13    subsequent to the first year in which the organization
14    licensee begins to receive funds from electronic gaming.
15    (h) The Board may approve and license the conduct of
16inter-track wagering and simulcast wagering by inter-track
17wagering licensees and inter-track wagering location licensees
18subject to the following terms and conditions:
19        (1) Any person licensed to conduct a race meeting (i)
20    at a track where 60 or more days of racing were conducted
21    during the immediately preceding calendar year or where
22    over the 5 immediately preceding calendar years an average
23    of 30 or more days of racing were conducted annually may be
24    issued an inter-track wagering license; (ii) at a track
25    located in a county that is bounded by the Mississippi
26    River, which has a population of less than 150,000

 

 

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1    according to the 1990 decennial census, and an average of
2    at least 60 days of racing per year between 1985 and 1993
3    may be issued an inter-track wagering license; or (iii) at
4    a track located in Madison County that conducted at least
5    100 days of live racing during the immediately preceding
6    calendar year may be issued an inter-track wagering
7    license, unless a lesser schedule of live racing is the
8    result of (A) weather, unsafe track conditions, or other
9    acts of God; (B) an agreement between the organization
10    licensee and the associations representing the largest
11    number of owners, trainers, jockeys, or standardbred
12    drivers who race horses at that organization licensee's
13    racing meeting; or (C) a finding by the Board of
14    extraordinary circumstances and that it was in the best
15    interest of the public and the sport to conduct fewer than
16    100 days of live racing. Any such person having operating
17    control of the racing facility may also receive up to 6
18    inter-track wagering location licenses. In no event shall
19    more than 6 inter-track wagering locations be established
20    for each eligible race track, except that an eligible race
21    track located in a county that has a population of more
22    than 230,000 and that is bounded by the Mississippi River
23    may establish up to 7 inter-track wagering locations. An
24    application for said license shall be filed with the Board
25    prior to such dates as may be fixed by the Board. With an
26    application for an inter-track wagering location license

 

 

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1    there shall be delivered to the Board a certified check or
2    bank draft payable to the order of the Board for an amount
3    equal to $500. The application shall be on forms prescribed
4    and furnished by the Board. The application shall comply
5    with all other rules, regulations and conditions imposed by
6    the Board in connection therewith.
7        (2) The Board shall examine the applications with
8    respect to their conformity with this Act and the rules and
9    regulations imposed by the Board. If found to be in
10    compliance with the Act and rules and regulations of the
11    Board, the Board may then issue a license to conduct
12    inter-track wagering and simulcast wagering to such
13    applicant. All such applications shall be acted upon by the
14    Board at a meeting to be held on such date as may be fixed
15    by the Board.
16        (3) In granting licenses to conduct inter-track
17    wagering and simulcast wagering, the Board shall give due
18    consideration to the best interests of the public, of horse
19    racing, and of maximizing revenue to the State.
20        (4) Prior to the issuance of a license to conduct
21    inter-track wagering and simulcast wagering, the applicant
22    shall file with the Board a bond payable to the State of
23    Illinois in the sum of $50,000, executed by the applicant
24    and a surety company or companies authorized to do business
25    in this State, and conditioned upon (i) the payment by the
26    licensee of all taxes due under Section 27 or 27.1 and any

 

 

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1    other monies due and payable under this Act, and (ii)
2    distribution by the licensee, upon presentation of the
3    winning ticket or tickets, of all sums payable to the
4    patrons of pari-mutuel pools.
5        (5) Each license to conduct inter-track wagering and
6    simulcast wagering shall specify the person to whom it is
7    issued, the dates on which such wagering is permitted, and
8    the track or location where the wagering is to be
9    conducted.
10        (6) All wagering under such license is subject to this
11    Act and to the rules and regulations from time to time
12    prescribed by the Board, and every such license issued by
13    the Board shall contain a recital to that effect.
14        (7) An inter-track wagering licensee or inter-track
15    wagering location licensee may accept wagers at the track
16    or location where it is licensed, or as otherwise provided
17    under this Act.
18        (8) Inter-track wagering or simulcast wagering shall
19    not be conducted at any track less than 4 5 miles from a
20    track at which a racing meeting is in progress.
21        (8.1) Inter-track wagering location licensees who
22    derive their licenses from a particular organization
23    licensee shall conduct inter-track wagering and simulcast
24    wagering only at locations which are either within 90 miles
25    of that race track where the particular organization
26    licensee is licensed to conduct racing, or within 135 miles

 

 

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1    of that race track where the particular organization
2    licensee is licensed to conduct racing in the case of race
3    tracks in counties of less than 400,000 that were operating
4    on or before June 1, 1986. However, inter-track wagering
5    and simulcast wagering shall not be conducted by those
6    licensees at any location within 5 miles of any race track
7    at which a horse race meeting has been licensed in the
8    current year, unless the person having operating control of
9    such race track has given its written consent to such
10    inter-track wagering location licensees, which consent
11    must be filed with the Board at or prior to the time
12    application is made.
13        (8.2) Inter-track wagering or simulcast wagering shall
14    not be conducted by an inter-track wagering location
15    licensee at any location within 500 feet of an existing
16    church, an or existing elementary or secondary public
17    school, or an existing elementary or secondary private
18    school registered with or recognized by the State Board of
19    Education school, nor within 500 feet of the residences of
20    more than 50 registered voters without receiving written
21    permission from a majority of the registered voters at such
22    residences. Such written permission statements shall be
23    filed with the Board. The distance of 500 feet shall be
24    measured to the nearest part of any building used for
25    worship services, education programs, residential
26    purposes, or conducting inter-track wagering by an

 

 

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

 

 

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1    to the payment of the privilege taxes and the purses, an
2    amount not to exceed 17% of all money wagered. Each program
3    of racing conducted by each inter-track wagering licensee
4    or inter-track wagering location licensee shall be
5    considered a separate racing day for the purpose of
6    determining the daily handle and computing the privilege
7    tax or pari-mutuel tax on such daily handle as provided in
8    Section 27.
9        (10.1) Except as provided in subsection (g) of Section
10    27 of this Act, inter-track wagering location licensees
11    shall pay 1% of the pari-mutuel handle at each location to
12    the municipality in which such location is situated and 1%
13    of the pari-mutuel handle at each location to the county in
14    which such location is situated. In the event that an
15    inter-track wagering location licensee is situated in an
16    unincorporated area of a county, such licensee shall pay 2%
17    of the pari-mutuel handle from such location to such
18    county.
19        (10.2) Notwithstanding any other provision of this
20    Act, with respect to intertrack wagering at a race track
21    located in a county that has a population of more than
22    230,000 and that is bounded by the Mississippi River ("the
23    first race track"), or at a facility operated by an
24    inter-track wagering licensee or inter-track wagering
25    location licensee that derives its license from the
26    organization licensee that operates the first race track,

 

 

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

 

 

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

 

 

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1    Section 27 of this Act, 1% of the pari-mutuel handle
2    wagered on inter-track wagering and simulcast wagering at
3    each inter-track wagering location licensee facility to
4    the Horse Racing Tax Allocation Fund, provided that, to the
5    extent the total amount collected and distributed to the
6    Horse Racing Tax Allocation Fund under this subsection (h)
7    during any calendar year exceeds the amount collected and
8    distributed to the Horse Racing Tax Allocation Fund during
9    calendar year 1994, that excess amount shall be
10    redistributed (I) to all inter-track wagering location
11    licensees, based on each licensee's pro-rata share of the
12    total handle from inter-track wagering and simulcast
13    wagering for all inter-track wagering location licensees
14    during the calendar year in which this provision is
15    applicable; then (II) the amounts redistributed to each
16    inter-track wagering location licensee as described in
17    subpart (I) shall be further redistributed as provided in
18    subparagraph (B) of paragraph (5) of subsection (g) of this
19    Section 26 provided first, that the shares of those
20    amounts, which are to be redistributed to the host track or
21    to purses at the host track under subparagraph (B) of
22    paragraph (5) of subsection (g) of this Section 26 shall be
23    redistributed based on each host track's pro rata share of
24    the total inter-track wagering and simulcast wagering
25    handle at all host tracks during the calendar year in
26    question, and second, that any amounts redistributed as

 

 

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

 

 

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1    county with a population in excess of 230,000 and that
2    borders the Mississippi River shall not divide any
3    remaining retention with the organization licensee.
4    Notwithstanding the provisions of clauses (ii) and (iv) of
5    this paragraph, in the case of the additional inter-track
6    wagering location licenses authorized under paragraph (1)
7    of this subsection (h) by this amendatory Act of 1991,
8    those licensees shall pay the following amounts as purses:
9    during the first 12 months the licensee is in operation,
10    5.25% of the pari-mutuel handle wagered at the location on
11    races; during the second 12 months, 5.25%; during the third
12    12 months, 5.75%; during the fourth 12 months, 6.25%; and
13    during the fifth 12 months and thereafter, 6.75%. The
14    following amounts shall be retained by the licensee to
15    satisfy all costs and expenses of conducting its wagering:
16    during the first 12 months the licensee is in operation,
17    8.25% of the pari-mutuel handle wagered at the location;
18    during the second 12 months, 8.25%; during the third 12
19    months, 7.75%; during the fourth 12 months, 7.25%; and
20    during the fifth 12 months and thereafter, 6.75%. For
21    additional intertrack wagering location licensees
22    authorized under this amendatory Act of 1995, purses for
23    the first 12 months the licensee is in operation shall be
24    5.75% of the pari-mutuel wagered at the location, purses
25    for the second 12 months the licensee is in operation shall
26    be 6.25%, and purses thereafter shall be 6.75%. For

 

 

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1    additional intertrack location licensees authorized under
2    this amendatory Act of 1995, the licensee shall be allowed
3    to retain to satisfy all costs and expenses: 7.75% of the
4    pari-mutuel handle wagered at the location during its first
5    12 months of operation, 7.25% during its second 12 months
6    of operation, and 6.75% thereafter.
7        (C) There is hereby created the Horse Racing Tax
8    Allocation Fund which shall remain in existence until
9    December 31, 1999. Moneys remaining in the Fund after
10    December 31, 1999 shall be paid into the General Revenue
11    Fund. Until January 1, 2000, all monies paid into the Horse
12    Racing Tax Allocation Fund pursuant to this paragraph (11)
13    by inter-track wagering location licensees located in park
14    districts of 500,000 population or less, or in a
15    municipality that is not included within any park district
16    but is included within a conservation district and is the
17    county seat of a county that (i) is contiguous to the state
18    of Indiana and (ii) has a 1990 population of 88,257
19    according to the United States Bureau of the Census, and
20    operating on May 1, 1994 shall be allocated by
21    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

 

 

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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

 

 

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

 

 

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1        municipal recreation board and the municipality has a
2        1990 population of 9,302 according to the United States
3        Bureau of the Census); provided that the monies are
4        distributed to each park district or conservation
5        district or municipality that does not have a park
6        district in an amount equal to four-sevenths of the
7        amount collected by each inter-track wagering location
8        licensee within the park district or conservation
9        district or municipality for the Fund. Monies that were
10        paid into the Horse Racing Tax Allocation Fund before
11        the effective date of this amendatory Act of 1991 by an
12        inter-track wagering location licensee located in a
13        municipality that is not included within any park
14        district but is included within a conservation
15        district as provided in this paragraph shall, as soon
16        as practicable after the effective date of this
17        amendatory Act of 1991, be allocated and paid to that
18        conservation district as provided in this paragraph.
19        Any park district or municipality not maintaining a
20        museum may deposit the monies in the corporate fund of
21        the park district or municipality where the
22        inter-track wagering location is located, to be used
23        for general purposes; and
24            One-seventh to the Agricultural Premium Fund to be
25        used for distribution to agricultural home economics
26        extension councils in accordance with "An Act in

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    racing day for the purpose of determining the daily handle
2    and computing the privilege or pari-mutuel tax on that
3    daily handle as provided in Sections 27 and 27.1. Such
4    agreements shall be approved by the Board before such
5    wagering may be conducted. In determining whether to grant
6    approval, the Board shall give due consideration to the
7    best interests of the public and of horse racing. The
8    provisions of paragraphs (1), (8), (8.1), and (8.2) of
9    subsection (h) of this Section which are not specified in
10    this paragraph (13) shall not apply to licensed race
11    meetings conducted by the Department of Agriculture at the
12    Illinois State Fair in Sangamon County or the DuQuoin State
13    Fair in Perry County, or to any wagering conducted on those
14    race meetings.
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. 96-762, eff. 8-25-09.)
 
20    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
21    Sec. 27. (a) In addition to the organization license fee
22provided by this Act, until January 1, 2000, a graduated
23privilege tax is hereby imposed for conducting the pari-mutuel
24system of wagering permitted under this Act. Until January 1,
252000, except as provided in subsection (g) of Section 27 of

 

 

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1this Act, all of the breakage of each racing day held by any
2licensee in the State shall be paid to the State. Until January
31, 2000, such daily graduated privilege tax shall be paid by
4the licensee from the amount permitted to be retained under
5this Act. Until January 1, 2000, each day's graduated privilege
6tax, breakage, and Horse Racing Tax Allocation funds shall be
7remitted to the Department of Revenue within 48 hours after the
8close of the racing day upon which it is assessed or within
9such other time as the Board prescribes. The privilege tax
10hereby imposed, until January 1, 2000, shall be a flat tax at
11the rate of 2% of the daily pari-mutuel handle except as
12provided in Section 27.1.
13    In addition, every organization licensee, except as
14provided in Section 27.1 of this Act, which conducts multiple
15wagering shall pay, until January 1, 2000, as a privilege tax
16on multiple wagers an amount equal to 1.25% of all moneys
17wagered each day on such multiple wagers, plus an additional
18amount equal to 3.5% of the amount wagered each day on any
19other multiple wager which involves a single betting interest
20on 3 or more horses. The licensee shall remit the amount of
21such taxes to the Department of Revenue within 48 hours after
22the close of the racing day on which it is assessed or within
23such other time as the Board prescribes.
24    This subsection (a) shall be inoperative and of no force
25and effect on and after January 1, 2000.
26    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax

 

 

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1at the rate of 1.5% of the daily pari-mutuel handle is imposed
2at all pari-mutuel wagering facilities and on advance deposit
3wagering from a location other than a wagering facility, except
4as otherwise provided for in this subsection (a-5). In addition
5to the pari-mutuel tax imposed on advance deposit wagering
6pursuant to this subsection (a-5), an additional pari-mutuel
7tax at the rate of 0.25% shall be imposed on advance deposit
8wagering, the amount of which shall not exceed $250,000 in each
9calendar year. The additional 0.25% pari-mutuel tax imposed on
10advance deposit wagering by this amendatory Act of the 96th
11General Assembly shall be deposited into the Quarter Horse
12Purse Fund, which shall be created as a non-appropriated trust
13fund administered by the Board for grants to thoroughbred
14organization licensees for payment of purses for quarter horse
15races conducted by the organization licensee. Thoroughbred
16organization licensees may petition the Board to conduct
17quarter horse racing and receive purse grants from the Quarter
18Horse Purse Fund. The Board shall have complete discretion in
19distributing the Quarter Horse Purse Fund to the petitioning
20organization licensees. Beginning on the effective date of this
21amendatory Act of the 96th General Assembly and until moneys
22deposited pursuant to Section 54 are distributed and received,
23a pari-mutuel tax at the rate of 0.75% of the daily pari-mutuel
24handle is imposed at a pari-mutuel facility whose license is
25derived from a track located in a county that borders the
26Mississippi River and conducted live racing in the previous

 

 

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1year. After moneys deposited pursuant to Section 54 are
2distributed and received, a pari-mutuel tax at the rate of 1.5%
3of the daily pari-mutuel handle is imposed at a pari-mutuel
4facility whose license is derived from a track located in a
5county that borders the Mississippi River and conducted live
6racing in the previous year. The pari-mutuel tax imposed by
7this subsection (a-5) shall be remitted to the Department of
8Revenue within 48 hours after the close of the racing day upon
9which it is assessed or within such other time as the Board
10prescribes.
11    (a-10) Beginning on the date when an organization licensee
12begins conducting electronic gaming pursuant to an electronic
13gaming license, the following pari-mutuel tax is imposed upon
14an organization licensee on Illinois races at the licensee's
15race track:
16        1.5% of the pari-mutuel handle at or below the average
17    daily pari-mutuel handle for 2010.
18        2% of the pari-mutuel handle above the average daily
19    pari-mutuel handle for 2010 up to 125% of the average daily
20    pari-mutuel handle for 2010.
21        2.5% of the pari-mutuel handle 125% or more above the
22    average daily pari-mutuel handle for 2010 up to 150% of the
23    average daily pari-mutuel handle for 2010.
24        3% of the pari-mutuel handle 150% or more above the
25    average daily pari-mutuel handle for 2010 up to 175% of the
26    average daily pari-mutuel handle for 2010.

 

 

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1        3.5% of the pari-mutuel handle 175% or more above the
2    average daily pari-mutuel handle for 2010.
3    The pari-mutuel tax imposed by this subsection (a-10) shall
4be remitted to the Board within 48 hours after the close of the
5racing day upon which it is assessed or within such other time
6as the Board prescribes.
7    (b) On or before December 31, 1999, in the event that any
8organization licensee conducts 2 separate programs of races on
9any day, each such program shall be considered a separate
10racing day for purposes of determining the daily handle and
11computing the privilege tax on such daily handle as provided in
12subsection (a) of this Section.
13    (c) Licensees shall at all times keep accurate books and
14records of all monies wagered on each day of a race meeting and
15of the taxes paid to the Department of Revenue under the
16provisions of this Section. The Board or its duly authorized
17representative or representatives shall at all reasonable
18times have access to such records for the purpose of examining
19and checking the same and ascertaining whether the proper
20amount of taxes is being paid as provided. The Board shall
21require verified reports and a statement of the total of all
22monies wagered daily at each wagering facility upon which the
23taxes are assessed and may prescribe forms upon which such
24reports and statement shall be made.
25    (d) Any licensee failing or refusing to pay the amount of
26any tax due under this Section shall be guilty of a business

 

 

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1offense and upon conviction shall be fined not more than $5,000
2in addition to the amount found due as tax under this Section.
3Each day's violation shall constitute a separate offense. All
4fines paid into Court by a licensee hereunder shall be
5transmitted and paid over by the Clerk of the Court to the
6Board.
7    (e) No other license fee, privilege tax, excise tax, or
8racing fee, except as provided in this Act, shall be assessed
9or collected from any such licensee by the State.
10    (f) No other license fee, privilege tax, excise tax or
11racing fee shall be assessed or collected from any such
12licensee by units of local government except as provided in
13paragraph 10.1 of subsection (h) and subsection (f) of Section
1426 of this Act. However, any municipality that has a Board
15licensed horse race meeting at a race track wholly within its
16corporate boundaries or a township that has a Board licensed
17horse race meeting at a race track wholly within the
18unincorporated area of the township may charge a local
19amusement tax not to exceed 10 per admission to such horse
20race meeting by the enactment of an ordinance. However, any
21municipality or county that has a Board licensed inter-track
22wagering location facility wholly within its corporate
23boundaries may each impose an admission fee not to exceed $1.00
24per admission to such inter-track wagering location facility,
25so that a total of not more than $2.00 per admission may be
26imposed. Except as provided in subparagraph (g) of Section 27

 

 

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

 

 

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1    succeeding allocation year shall be allocated an amount
2    equal to the product of its percentage of total Illinois
3    live thoroughbred or standardbred wagering in calendar
4    year 1994 (the total to be determined based on the sum of
5    1994 on-track wagering for all organization licensees
6    issued organization licenses in both the allocation year
7    and the preceding year) multiplied by the total amount
8    allocated for standardbred or thoroughbred purses,
9    provided that the first $1,500,000 of the amount allocated
10    to standardbred purses under item (i) shall be allocated to
11    the Department of Agriculture to be expended with the
12    assistance and advice of the Illinois Standardbred
13    Breeders Funds Advisory Board for the purposes listed in
14    subsection (g) of Section 31 of this Act, before the amount
15    allocated to standardbred purses under item (i) is
16    allocated to standardbred organization licensees in the
17    succeeding allocation year.
18    To the extent the excess amount of taxes and fees to be
19collected and distributed to State and local governmental
20authorities exceeds $11 million, that excess amount shall be
21collected and distributed to State and local authorities as
22provided for under this Act.
23(Source: P.A. 96-762, eff. 8-25-09; 96-1287, eff. 7-26-10.)
 
24    (230 ILCS 5/28)  (from Ch. 8, par. 37-28)
25    Sec. 28. Except as provided in subsection (g) of Section 27

 

 

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1of this Act, moneys collected shall be distributed according to
2the provisions of this Section 28.
3    (a) Thirty per cent of the total of all monies received by
4the State as privilege taxes shall be paid into the
5Metropolitan Exposition Auditorium and Office Building Fund in
6the State Treasury.
7    (b) In addition, 4.5% of the total of all monies received
8by the State as privilege taxes shall be paid into the State
9treasury into a special Fund to be known as the Metropolitan
10Exposition, Auditorium, and Office Building Fund.
11    (c) Fifty per cent of the total of all monies received by
12the State as privilege taxes under the provisions of this Act
13shall be paid into the Agricultural Premium Fund.
14    (d) Seven per cent of the total of all monies received by
15the State as privilege taxes shall be paid into the Fair and
16Exposition Fund in the State treasury; provided, however, that
17when all bonds issued prior to July 1, 1984 by the Metropolitan
18Fair and Exposition Authority shall have been paid or payment
19shall have been provided for upon a refunding of those bonds,
20thereafter 1/12 of $1,665,662 of such monies shall be paid each
21month into the Build Illinois Fund, and the remainder into the
22Fair and Exposition Fund. All excess monies shall be allocated
23to the Department of Agriculture for distribution to county
24fairs for premiums and rehabilitation as set forth in the
25Agricultural Fair Act.
26    (e) The monies provided for in Section 30 shall be paid

 

 

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1into the Illinois Thoroughbred Breeders Fund.
2    (f) The monies provided for in Section 31 shall be paid
3into the Illinois Standardbred Breeders Fund.
4    (g) Until January 1, 2000, that part representing 1/2 of
5the total breakage in Thoroughbred, Harness, Appaloosa,
6Arabian, and Quarter Horse racing in the State shall be paid
7into the Illinois Race Track Improvement Fund as established in
8Section 32.
9    (h) All other monies received by the Board under this Act
10shall be paid into the Horse Racing Fund General Revenue Fund
11of the State.
12    (i) The salaries of the Board members, secretary, stewards,
13directors of mutuels, veterinarians, representatives,
14accountants, clerks, stenographers, inspectors and other
15employees of the Board, and all expenses of the Board incident
16to the administration of this Act, including, but not limited
17to, all expenses and salaries incident to the taking of saliva
18and urine samples in accordance with the rules and regulations
19of the Board shall be paid out of the Agricultural Premium
20Fund.
21    (j) The Agricultural Premium Fund shall also be used:
22        (1) for the expenses of operating the Illinois State
23    Fair and the DuQuoin State Fair, including the payment of
24    prize money or premiums;
25        (2) for the distribution to county fairs, vocational
26    agriculture section fairs, agricultural societies, and

 

 

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1    agricultural extension clubs in accordance with the
2    Agricultural Fair Act, as amended;
3        (3) for payment of prize monies and premiums awarded
4    and for expenses incurred in connection with the
5    International Livestock Exposition and the Mid-Continent
6    Livestock Exposition held in Illinois, which premiums, and
7    awards must be approved, and paid by the Illinois
8    Department of Agriculture;
9        (4) for personal service of county agricultural
10    advisors and county home advisors;
11        (5) for distribution to agricultural home economic
12    extension councils in accordance with "An Act in relation
13    to additional support and finance for the Agricultural and
14    Home Economic Extension Councils in the several counties in
15    this State and making an appropriation therefor", approved
16    July 24, 1967, as amended;
17        (6) for research on equine disease, including a
18    development center therefor;
19        (7) for training scholarships for study on equine
20    diseases to students at the University of Illinois College
21    of Veterinary Medicine;
22        (8) for the rehabilitation, repair and maintenance of
23    the Illinois and DuQuoin State Fair Grounds and the
24    structures and facilities thereon and the construction of
25    permanent improvements on such Fair Grounds, including
26    such structures, facilities and property located on such

 

 

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1    State Fair Grounds which are under the custody and control
2    of the Department of Agriculture;
3        (9) for the expenses of the Department of Agriculture
4    under Section 5-530 of the Departments of State Government
5    Law (20 ILCS 5/5-530);
6        (10) for the expenses of the Department of Commerce and
7    Economic Opportunity under Sections 605-620, 605-625, and
8    605-630 of the Department of Commerce and Economic
9    Opportunity Law (20 ILCS 605/605-620, 605/605-625, and
10    605/605-630);
11        (11) for remodeling, expanding, and reconstructing
12    facilities destroyed by fire of any Fair and Exposition
13    Authority in counties with a population of 1,000,000 or
14    more inhabitants;
15        (12) for the purpose of assisting in the care and
16    general rehabilitation of disabled veterans of any war and
17    their surviving spouses and orphans;
18        (13) for expenses of the Department of State Police for
19    duties performed under this Act;
20        (14) for the Department of Agriculture for soil surveys
21    and soil and water conservation purposes;
22        (15) for the Department of Agriculture for grants to
23    the City of Chicago for conducting the Chicagofest;
24        (16) for the State Comptroller for grants and operating
25    expenses authorized by the Illinois Global Partnership
26    Act.

 

 

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1    (k) To the extent that monies paid by the Board to the
2Agricultural Premium Fund are in the opinion of the Governor in
3excess of the amount necessary for the purposes herein stated,
4the Governor shall notify the Comptroller and the State
5Treasurer of such fact, who, upon receipt of such notification,
6shall transfer such excess monies from the Agricultural Premium
7Fund to the General Revenue Fund.
8(Source: P.A. 94-91, Sections 55-135 and 90-10, eff. 7-1-05.)
 
9    (230 ILCS 5/28.1)
10    Sec. 28.1. Payments.
11    (a) Beginning on January 1, 2000, moneys collected by the
12Department of Revenue and the Racing Board pursuant to Section
1326 or Section 27 of this Act shall be deposited into the Horse
14Racing Fund, which is hereby created as a special fund in the
15State Treasury.
16    (b) Appropriations, as approved by the General Assembly,
17may be made from the Horse Racing Fund to the Board to pay the
18salaries of the Board members, secretary, stewards, directors
19of mutuels, veterinarians, representatives, accountants,
20clerks, stenographers, inspectors and other employees of the
21Board, and all expenses of the Board incident to the
22administration of this Act, including, but not limited to, all
23expenses and salaries incident to the taking of saliva and
24urine samples in accordance with the rules and regulations of
25the Board.

 

 

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1    (c) Beginning on January 1, 2000, the Board shall transfer
2the remainder of the funds generated pursuant to Sections 26
3and 27 from the Horse Racing Fund into the General Revenue
4Fund.
5    In the event that in any fiscal year, the amount of total
6funds in the Horse Racing Fund is insufficient to meet the
7annual operating expenses of the Board, as appropriated by the
8General Assembly for that fiscal year, the Board shall invoice
9the organization licensees for the amount of the deficit. The
10amount of the invoice shall be allocated in a proportionate
11amount of pari-mutuel wagering handled by the organization
12licensee in the year preceding assessment and divided by the
13total pari-mutuel wagering handled by all Illinois
14organization licensees. The payments shall be made 50% from the
15organization licensee's account and 50% from the organization
16licensee's purse account.
17    (d) Beginning January 1, 2000, payments to all programs in
18existence on the effective date of this amendatory Act of 1999
19that are identified in Sections 26(c), 26(f), 26(h)(11)(C), and
2028, subsections (a), (b), (c), (d), (e), (f), (g), and (h) of
21Section 30, and subsections (a), (b), (c), (d), (e), (f), (g),
22and (h) of Section 31 shall be made from the General Revenue
23Fund at the funding levels determined by amounts paid under
24this Act in calendar year 1998. Beginning on the effective date
25of this amendatory Act of the 93rd General Assembly, payments
26to the Peoria Park District shall be made from the General

 

 

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1Revenue Fund at the funding level determined by amounts paid to
2that park district for museum purposes under this Act in
3calendar year 1994.
4    If an inter-track wagering location licensee's facility
5changes its location, then the payments associated with that
6facility under this subsection (d) for museum purposes shall be
7paid to the park district in the area where the facility
8relocates, and the payments shall be used for museum purposes.
9If the facility does not relocate to a park district, then the
10payments shall be paid to the taxing district that is
11responsible for park or museum expenditures.
12    (e) Beginning July 1, 2006, the payment authorized under
13subsection (d) to museums and aquariums located in park
14districts of over 500,000 population shall be paid to museums,
15aquariums, and zoos in amounts determined by Museums in the
16Park, an association of museums, aquariums, and zoos located on
17Chicago Park District property.
18    (f) Beginning July 1, 2007, the Children's Discovery Museum
19in Normal, Illinois shall receive payments from the General
20Revenue Fund at the funding level determined by the amounts
21paid to the Miller Park Zoo in Bloomington, Illinois under this
22Section in calendar year 2006.
23(Source: P.A. 95-222, eff. 8-16-07; 96-562, eff. 8-18-09.)
 
24    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
25    Sec. 30. (a) The General Assembly declares that it is the

 

 

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

 

 

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1Fund.
2    Beginning on the effective date of this amendatory Act of
3the 96th General Assembly, the Illinois Thoroughbred Breeders
4Fund shall become a non-appropriated trust fund held separate
5and apart from State moneys. Expenditures from this fund shall
6no longer be subject to appropriation.
7    Except as provided in subsection (g) of Section 27 of this
8Act, 8.5% of all the monies received by the State as privilege
9taxes on Thoroughbred racing meetings shall be paid into the
10Illinois Thoroughbred Breeders Fund.
11    Notwithstanding any provision of law to the contrary,
12amounts deposited into the Illinois Thoroughbred Breeders Fund
13from revenues generated by electronic gaming after the
14effective date of this amendatory Act of the 96th General
15Assembly shall be in addition to tax and fee amounts paid under
16this Section for calendar year 2010 and thereafter.
17    (e) The Illinois Thoroughbred Breeders Fund shall be
18administered by the Department of Agriculture with the advice
19and assistance of the Advisory Board created in subsection (f)
20of this Section.
21    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
22shall consist of the Director of the Department of Agriculture,
23who shall serve as Chairman; a member of the Illinois Racing
24Board, designated by it; 2 representatives of the organization
25licensees conducting thoroughbred racing meetings, recommended
26by them; 2 representatives of the Illinois Thoroughbred

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1Finance Act. Whenever the Governor finds that the amount in the
2Illinois Thoroughbred Breeders Fund is more than the total of
3the outstanding appropriations from such fund, the Governor
4shall notify the State Comptroller and the State Treasurer of
5such fact. The Comptroller and the State Treasurer, upon
6receipt of such notification, shall transfer such excess amount
7from the Illinois Thoroughbred Breeders Fund to the General
8Revenue Fund.
9    (i) A sum equal to 13% 12 1/2% of the first prize money of
10every purse won by an Illinois foaled or an Illinois conceived
11and foaled horse in races not limited to Illinois foaled horses
12or Illinois conceived and foaled horses, or both, shall be paid
13by the organization licensee conducting the horse race meeting.
14Such sum shall be paid 50% from the organization licensee's
15account and 50% from the purse account of the licensee share of
16the money wagered as follows: 11 1/2% to the breeder of the
17winning horse and 1 1/2% 1% to the organization representing
18thoroughbred breeders and owners whose representative serves
19on the Illinois Thoroughbred Breeders Fund Advisory Board for
20verifying the amounts of breeders' awards earned, assuring
21their distribution in accordance with this Act, and servicing
22and promoting the Illinois thoroughbred horse racing industry.
23The organization representing thoroughbred breeders and owners
24shall cause all expenditures of monies received under this
25subsection (i) to be audited at least annually by a registered
26public accountant. The organization shall file copies of each

 

 

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1annual audit with the Racing Board, the Clerk of the House of
2Representatives and the Secretary of the Senate, and shall make
3copies of each annual audit available to the public upon
4request and upon payment of the reasonable cost of photocopying
5the requested number of copies. Such payments shall not reduce
6any award to the owner of the horse or reduce the taxes payable
7under this Act. Upon completion of its racing meet, each
8organization licensee shall deliver to the organization
9representing thoroughbred breeders and owners whose
10representative serves on the Illinois Thoroughbred Breeders
11Fund Advisory Board a listing of all the Illinois foaled and
12the Illinois conceived and foaled horses which won breeders'
13awards and the amount of such breeders' awards under this
14subsection to verify accuracy of payments and assure proper
15distribution of breeders' awards in accordance with the
16provisions of this Act. Such payments shall be delivered by the
17organization licensee within 30 days of the end of each race
18meeting.
19    (j) A sum equal to 13% 12 1/2% of the first prize money won
20in each race limited to Illinois foaled horses or Illinois
21conceived and foaled horses, or both, shall be paid in the
22following manner by the organization licensee conducting the
23horse race meeting, 50% from the organization licensee's
24account and 50% from the purse account of the licensee share of
25the money wagered: 11 1/2% to the breeders of the horses in
26each such race which are the official first, second, third and

 

 

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

 

 

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1horse or reduce the taxes payable under this Act. Upon
2completion of its racing meet, each organization licensee shall
3deliver to the organization representing thoroughbred breeders
4and owners whose representative serves on the Illinois
5Thoroughbred Breeders Fund Advisory Board a listing of all the
6Illinois foaled and the Illinois conceived and foaled horses
7which won breeders' awards and the amount of such breeders'
8awards in accordance with the provisions of this Act. Such
9payments shall be delivered by the organization licensee within
1030 days of the end of each race meeting.
11    (k) The term "breeder", as used herein, means the owner of
12the mare at the time the foal is dropped. An "Illinois foaled
13horse" is a foal dropped by a mare which enters this State on
14or before December 1, in the year in which the horse is bred,
15provided the mare remains continuously in this State until its
16foal is born. An "Illinois foaled horse" also means a foal born
17of a mare in the same year as the mare enters this State on or
18before March 1, and remains in this State at least 30 days
19after foaling, is bred back during the season of the foaling to
20an Illinois Registered Stallion (unless a veterinarian
21certifies that the mare should not be bred for health reasons),
22and is not bred to a stallion standing in any other state
23during the season of foaling. An "Illinois foaled horse" also
24means a foal born in Illinois of a mare purchased at public
25auction subsequent to the mare entering this State on or before
26March 1 prior to February 1 of the foaling year providing the

 

 

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

 

 

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1    application fees for the registration of Illinois-eligible
2    foals. All fees collected are to be held in trust accounts
3    for the purposes set forth in this Act and in accordance
4    with Section 205-15 of the Department of Agriculture Law
5    paid into the Illinois Thoroughbred Breeders Fund. No
6    person shall knowingly prepare or cause preparation of an
7    application for registration of such foals containing
8    false information.
9    (m) The Department of Agriculture, with the advice and
10assistance of the Illinois Thoroughbred Breeders Fund Advisory
11Board, shall provide that certain races limited to Illinois
12conceived and foaled and Illinois foaled horses be stakes races
13and determine the total amount of stakes and awards to be paid
14to the owners of the winning horses in such races.
15    In determining the stakes races and the amount of awards
16for such races, the Department of Agriculture shall consider
17factors, including but not limited to, the amount of money
18appropriated for the Illinois Thoroughbred Breeders Fund
19program, organization licensees' contributions, availability
20of stakes caliber horses as demonstrated by past performances,
21whether the race can be coordinated into the proposed racing
22dates within organization licensees' racing dates, opportunity
23for colts and fillies and various age groups to race, public
24wagering on such races, and the previous racing schedule.
25    (n) The Board and the organizational licensee shall notify
26the Department of the conditions and minimum purses for races

 

 

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1limited to Illinois conceived and foaled and Illinois foaled
2horses conducted for each organizational licensee conducting a
3thoroughbred racing meeting. The Department of Agriculture
4with the advice and assistance of the Illinois Thoroughbred
5Breeders Fund Advisory Board may allocate monies for purse
6supplements for such races. In determining whether to allocate
7money and the amount, the Department of Agriculture shall
8consider factors, including but not limited to, the amount of
9money appropriated for the Illinois Thoroughbred Breeders Fund
10program, the number of races that may occur, and the
11organizational licensee's purse structure.
12    (o) In order to improve the breeding quality of
13thoroughbred horses in the State, the General Assembly
14recognizes that existing provisions of this Section to
15encourage such quality breeding need to be revised and
16strengthened. As such, a Thoroughbred Breeder's Program Task
17Force is to be appointed by the Governor by September 1, 1999
18to make recommendations to the General Assembly by no later
19than March 1, 2000. This task force is to be composed of 2
20representatives from the Illinois Thoroughbred Breeders and
21Owners Foundation, 2 from the Illinois Thoroughbred Horsemen's
22Association, 3 from Illinois race tracks operating
23thoroughbred race meets for an average of at least 30 days in
24the past 3 years, the Director of Agriculture, the Executive
25Director of the Racing Board, who shall serve as Chairman.
26(Source: P.A. 91-40, eff. 6-25-99.)
 

 

 

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1    (230 ILCS 5/30.5)
2    Sec. 30.5. Illinois Quarter Horse Breeders Fund.
3    (a) The General Assembly declares that it is the policy of
4this State to encourage the breeding of racing quarter horses
5in this State and the ownership of such horses by residents of
6this State in order to provide for sufficient numbers of high
7quality racing quarter horses in this State and to establish
8and preserve the agricultural and commercial benefits of such
9breeding and racing industries to the State of Illinois. It is
10the intent of the General Assembly to further this policy by
11the provisions of this Act.
12    (b) There is hereby created a non-appropriated trust
13special fund in the State Treasury to be known as the Illinois
14Racing Quarter Horse Breeders Fund, which is held separate and
15apart from State moneys. Except as provided in subsection (g)
16of Section 27 of this Act, 8.5% of all the moneys received by
17the State as pari-mutuel taxes on quarter horse racing shall be
18paid into the Illinois Racing Quarter Horse Breeders Fund. The
19Illinois Racing Quarter Horse Breeders Fund shall not be
20subject to administrative charges or chargebacks, including,
21but not limited to, those authorized under Section 8h of the
22State Finance Act.
23    (c) The Illinois Racing Quarter Horse Breeders Fund shall
24be administered by the Department of Agriculture with the
25advice and assistance of the Advisory Board created in

 

 

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1subsection (d) of this Section.
2    (d) The Illinois Racing Quarter Horse Breeders Fund
3Advisory Board shall consist of the Director of the Department
4of Agriculture, who shall serve as Chairman; a member of the
5Illinois Racing Board, designated by it; one representative of
6the organization licensees conducting pari-mutuel quarter
7horse racing meetings, recommended by them; 2 representatives
8of the Illinois Running Quarter Horse Association, recommended
9by it; and the Superintendent of Fairs and Promotions from the
10Department of Agriculture. Advisory Board members shall serve
11for 2 years commencing January 1 of each odd numbered year. If
12representatives have not been recommended by January 1 of each
13odd numbered year, the Director of the Department of
14Agriculture may make an appointment for the organization
15failing to so recommend a member of the Advisory Board.
16Advisory Board members shall receive no compensation for their
17services as members but may be reimbursed for all actual and
18necessary expenses and disbursements incurred in the execution
19of their official duties.
20    (e) Moneys in No moneys shall be expended from the Illinois
21Racing Quarter Horse Breeders Fund except as appropriated by
22the General Assembly. Moneys appropriated from the Illinois
23Racing Quarter Horse Breeders Fund shall be expended by the
24Department of Agriculture, with the advice and assistance of
25the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
26for the following purposes only:

 

 

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1        (1) To provide stakes and awards to be paid to the
2    owners of the winning horses in certain races. This
3    provision is limited to Illinois conceived and foaled
4    horses.
5        (2) To provide an award to the owner or owners of an
6    Illinois conceived and foaled horse that wins a race when
7    pari-mutuel wagering is conducted; providing the race is
8    not restricted to Illinois conceived and foaled horses.
9        (3) To provide purse money for an Illinois stallion
10    stakes program.
11        (4) To provide for purses to be distributed for the
12    running of races during the Illinois State Fair and the
13    DuQuoin State Fair exclusively for quarter horses
14    conceived and foaled in Illinois.
15        (5) To provide for purses to be distributed for the
16    running of races at Illinois county fairs exclusively for
17    quarter horses conceived and foaled in Illinois.
18        (6) To provide for purses to be distributed for running
19    races exclusively for quarter horses conceived and foaled
20    in Illinois at locations in Illinois determined by the
21    Department of Agriculture with advice and consent of the
22    Racing Quarter Horse Breeders Fund Advisory Board.
23        (7) No less than 90% of all moneys appropriated from
24    the Illinois Racing Quarter Horse Breeders Fund shall be
25    expended for the purposes in items (1), (2), (3), (4), and
26    (5) of this subsection (e).

 

 

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1        (8) To provide for research programs concerning the
2    health, development, and care of racing quarter horses.
3        (9) To provide for dissemination of public information
4    designed to promote the breeding of racing quarter horses
5    in Illinois.
6        (10) To provide for expenses incurred in the
7    administration of the Illinois Racing Quarter Horse
8    Breeders Fund.
9    (f) The Department of Agriculture shall, by rule, with the
10advice and assistance of the Illinois Racing Quarter Horse
11Breeders Fund Advisory Board:
12        (1) Qualify stallions for Illinois breeding; such
13    stallions to stand for service within the State of
14    Illinois, at the time of a foal's conception. Such stallion
15    must not stand for service at any place outside the State
16    of Illinois during the calendar year in which the foal is
17    conceived. The Department of Agriculture may assess and
18    collect application fees for the registration of
19    Illinois-eligible stallions. All fees collected are to be
20    paid into the Illinois Racing Quarter Horse Breeders Fund.
21        (2) Provide for the registration of Illinois conceived
22    and foaled horses. No such horse shall compete in the races
23    limited to Illinois conceived and foaled horses unless it
24    is registered with the Department of Agriculture. The
25    Department of Agriculture may prescribe such forms as are
26    necessary to determine the eligibility of such horses. The

 

 

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1    Department of Agriculture may assess and collect
2    application fees for the registration of Illinois-eligible
3    foals. All fees collected are to be paid into the Illinois
4    Racing Quarter Horse Breeders Fund. No person shall
5    knowingly prepare or cause preparation of an application
6    for registration of such foals that contains false
7    information.
8    (g) The Department of Agriculture, with the advice and
9assistance of the Illinois Racing Quarter Horse Breeders Fund
10Advisory Board, shall provide that certain races limited to
11Illinois conceived and foaled be stakes races and determine the
12total amount of stakes and awards to be paid to the owners of
13the winning horses in such races.
14(Source: P.A. 91-40, eff. 6-25-99.)
 
15    (230 ILCS 5/31)  (from Ch. 8, par. 37-31)
16    Sec. 31. (a) The General Assembly declares that it is the
17policy of this State to encourage the breeding of standardbred
18horses in this State and the ownership of such horses by
19residents of this State in order to provide for: sufficient
20numbers of high quality standardbred horses to participate in
21harness racing meetings in this State, and to establish and
22preserve the agricultural and commercial benefits of such
23breeding and racing industries to the State of Illinois. It is
24the intent of the General Assembly to further this policy by
25the provisions of this Section of this Act.

 

 

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1    (b) Each organization licensee conducting a harness racing
2meeting pursuant to this Act shall provide for at least two
3races each race program limited to Illinois conceived and
4foaled horses. A minimum of 6 races shall be conducted each
5week limited to Illinois conceived and foaled horses. No horses
6shall be permitted to start in such races unless duly
7registered under the rules of the Department of Agriculture.
8    (b-5) Organization licensees, not including the Illinois
9State Fair or the DuQuoin State Fair, shall provide stake races
10and early closer races for Illinois conceived and foaled horses
11so that purses distributed for such races shall be no less than
1217% of total purses distributed for harness racing in that
13calendar year in addition to any stakes payments and starting
14fees contributed by horse owners.
15    (b-10) Each organization licensee conducting a harness
16racing meeting pursuant to this Act shall provide an owner
17award to be paid from the purse account equal to 25% of the
18amount earned by Illinois conceived and foaled horses in races
19that are not restricted to Illinois conceived and foaled
20horses. The owner awards shall not be paid on races below the
21$10,000 claiming class.
22    (c) Conditions of races under subsection (b) shall be
23commensurate with past performance, quality and class of
24Illinois conceived and foaled horses available. If, however,
25sufficient competition cannot be had among horses of that class
26on any day, the races may, with consent of the Board, be

 

 

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1eliminated for that day and substitute races provided.
2    (d) There is hereby created a special fund of the State
3Treasury to be known as the Illinois Standardbred Breeders
4Fund.
5    During the calendar year 1981, and each year thereafter,
6except as provided in subsection (g) of Section 27 of this Act,
7eight and one-half per cent of all the monies received by the
8State as privilege taxes on harness racing meetings shall be
9paid into the Illinois Standardbred Breeders Fund.
10    (e) The Illinois Standardbred Breeders Fund shall be
11administered by the Department of Agriculture with the
12assistance and advice of the Advisory Board created in
13subsection (f) of this Section.
14    (f) The Illinois Standardbred Breeders Fund Advisory Board
15is hereby created. The Advisory Board shall consist of the
16Director of the Department of Agriculture, who shall serve as
17Chairman; the Superintendent of the Illinois State Fair; a
18member of the Illinois Racing Board, designated by it; a
19representative of the Illinois Standardbred Owners and
20Breeders Association, recommended by it; a representative of
21the Illinois Association of Agricultural Fairs, recommended by
22it, such representative to be from a fair at which Illinois
23conceived and foaled racing is conducted; a representative of
24the organization licensees conducting harness racing meetings,
25recommended by them and a representative of the Illinois
26Harness Horsemen's Association, recommended by it. Advisory

 

 

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1Board members shall serve for 2 years commencing January 1, of
2each odd numbered year. If representatives of the Illinois
3Standardbred Owners and Breeders Associations, the Illinois
4Association of Agricultural Fairs, the Illinois Harness
5Horsemen's Association, and the organization licensees
6conducting harness racing meetings have not been recommended by
7January 1, of each odd numbered year, the Director of the
8Department of Agriculture shall make an appointment for the
9organization failing to so recommend a member of the Advisory
10Board. Advisory Board members shall receive no compensation for
11their services as members but shall be reimbursed for all
12actual and necessary expenses and disbursements incurred in the
13execution of their official duties.
14    (g) No monies shall be expended from the Illinois
15Standardbred Breeders Fund except as appropriated by the
16General Assembly. Monies appropriated from the Illinois
17Standardbred Breeders Fund shall be expended by the Department
18of Agriculture, with the assistance and advice of the Illinois
19Standardbred Breeders Fund Advisory Board for the following
20purposes only:
21        1. To provide purses for races limited to Illinois
22    conceived and foaled horses at the State Fair and the
23    DuQuoin State Fair.
24        2. To provide purses for races limited to Illinois
25    conceived and foaled horses at county fairs.
26        3. To provide purse supplements for races limited to

 

 

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1    Illinois conceived and foaled horses conducted by
2    associations conducting harness racing meetings.
3        4. No less than 75% of all monies in the Illinois
4    Standardbred Breeders Fund shall be expended for purses in
5    1, 2 and 3 as shown above.
6        5. In the discretion of the Department of Agriculture
7    to provide awards to harness breeders of Illinois conceived
8    and foaled horses which win races conducted by organization
9    licensees conducting harness racing meetings. A breeder is
10    the owner of a mare at the time of conception. No more than
11    10% of all monies appropriated from the Illinois
12    Standardbred Breeders Fund shall be expended for such
13    harness breeders awards. No more than 25% of the amount
14    expended for harness breeders awards shall be expended for
15    expenses incurred in the administration of such harness
16    breeders awards.
17        6. To pay for the improvement of racing facilities
18    located at the State Fair and County fairs.
19        7. To pay the expenses incurred in the administration
20    of the Illinois Standardbred Breeders Fund.
21        8. To promote the sport of harness racing, including
22    grants up to a maximum of $7,500 per fair per year for
23    conducting pari-mutuel wagering during the advertised
24    dates of a county fair.
25        9. To pay up to $50,000 annually for the Department of
26    Agriculture to conduct drug testing at county fairs racing

 

 

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1    standardbred horses.
2        10. To pay up to $100,000 annually for distribution to
3    Illinois county fairs to supplement premiums offered in
4    junior classes.
5        11. To pay up to $100,000 annually for division and
6    equal distribution to each Illinois public university
7    system engaged in equine research and education on or
8    before the effective date of this amendatory Act of the
9    96th General Assembly for equine research and education.
10    (h) (Blank) Whenever the Governor finds that the amount in
11the Illinois Standardbred Breeders Fund is more than the total
12of the outstanding appropriations from such fund, the Governor
13shall notify the State Comptroller and the State Treasurer of
14such fact. The Comptroller and the State Treasurer, upon
15receipt of such notification, shall transfer such excess amount
16from the Illinois Standardbred Breeders Fund to the General
17Revenue Fund.
18    (i) A sum equal to 13% 12 1/2% of the first prize money of
19the gross every purse won by an Illinois conceived and foaled
20horse shall be paid 50% by the organization licensee conducting
21the horse race meeting to the breeder of such winning horse
22from the organization licensee's account and 50% from the purse
23account of the licensee share of the money wagered. Such
24payment shall not reduce any award to the owner of the horse or
25reduce the taxes payable under this Act. Such payment shall be
26delivered by the organization licensee at the end of each

 

 

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1quarter race meeting.
2    (j) The Department of Agriculture shall, by rule, with the
3assistance and advice of the Illinois Standardbred Breeders
4Fund Advisory Board:
5        1. Qualify stallions for Illinois Standardbred
6    Breeders Fund breeding; such stallion shall be owned by a
7    resident of the State of Illinois or by an Illinois
8    corporation all of whose shareholders, directors, officers
9    and incorporators are residents of the State of Illinois.
10    Such stallion shall stand for service at and within the
11    State of Illinois at the time of a foal's conception, and
12    such stallion must not stand for service at any place, nor
13    may semen from such stallion be transported, outside the
14    State of Illinois during that calendar year in which the
15    foal is conceived and that the owner of the stallion was
16    for the 12 months prior, a resident of Illinois. Foals
17    conceived outside the State of Illinois from shipped semen
18    from a stallion qualified for breeders' awards under this
19    Section are not eligible to participate in the Illinois
20    conceived and foaled program. The articles of agreement of
21    any partnership, joint venture, limited partnership,
22    syndicate, association or corporation and any bylaws and
23    stock certificates must contain a restriction that
24    provides that the ownership or transfer of interest by any
25    one of the persons a party to the agreement can only be
26    made to a person who qualifies as an Illinois resident.

 

 

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1        2. Provide for the registration of Illinois conceived
2    and foaled horses and no such horse shall compete in the
3    races limited to Illinois conceived and foaled horses
4    unless registered with the Department of Agriculture. The
5    Department of Agriculture may prescribe such forms as may
6    be necessary to determine the eligibility of such horses.
7    No person shall knowingly prepare or cause preparation of
8    an application for registration of such foals containing
9    false information. A mare (dam) must be in the state at
10    least 30 days prior to foaling or remain in the State at
11    least 30 days at the time of foaling. Beginning with the
12    1996 breeding season and for foals of 1997 and thereafter,
13    a foal conceived in the State of Illinois by transported
14    fresh semen may be eligible for Illinois conceived and
15    foaled registration provided all breeding and foaling
16    requirements are met. The stallion must be qualified for
17    Illinois Standardbred Breeders Fund breeding at the time of
18    conception and the mare must be inseminated within the
19    State of Illinois. The foal must be dropped in Illinois and
20    properly registered with the Department of Agriculture in
21    accordance with this Act.
22        3. Provide that at least a 5 day racing program shall
23    be conducted at the State Fair each year, which program
24    shall include at least the following races limited to
25    Illinois conceived and foaled horses: (a) a two year old
26    Trot and Pace, and Filly Division of each; (b) a three year

 

 

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1    old Trot and Pace, and Filly Division of each; (c) an aged
2    Trot and Pace, and Mare Division of each.
3        4. Provide for the payment of nominating, sustaining
4    and starting fees for races promoting the sport of harness
5    racing and for the races to be conducted at the State Fair
6    as provided in subsection (j) 3 of this Section provided
7    that the nominating, sustaining and starting payment
8    required from an entrant shall not exceed 2% of the purse
9    of such race. All nominating, sustaining and starting
10    payments shall be held for the benefit of entrants and
11    shall be paid out as part of the respective purses for such
12    races. Nominating, sustaining and starting fees shall be
13    held in trust accounts for the purposes as set forth in
14    this Act and in accordance with Section 205-15 of the
15    Department of Agriculture Law (20 ILCS 205/205-15).
16        5. Provide for the registration with the Department of
17    Agriculture of Colt Associations or county fairs desiring
18    to sponsor races at county fairs.
19        6. Provide for the promotion of producing standardbred
20    racehorses by providing a bonus award program for owners of
21    2-year-old horses that win multiple major stakes races that
22    are limited to Illinois conceived and foaled horses.
23    (k) The Department of Agriculture, with the advice and
24assistance of the Illinois Standardbred Breeders Fund Advisory
25Board, may allocate monies for purse supplements for such
26races. In determining whether to allocate money and the amount,

 

 

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1the Department of Agriculture shall consider factors,
2including but not limited to, the amount of money appropriated
3for the Illinois Standardbred Breeders Fund program, the number
4of races that may occur, and an organizational licensee's purse
5structure. The organizational licensee shall notify the
6Department of Agriculture of the conditions and minimum purses
7for races limited to Illinois conceived and foaled horses to be
8conducted by each organizational licensee conducting a harness
9racing meeting for which purse supplements have been
10negotiated.
11    (l) All races held at county fairs and the State Fair which
12receive funds from the Illinois Standardbred Breeders Fund
13shall be conducted in accordance with the rules of the United
14States Trotting Association unless otherwise modified by the
15Department of Agriculture.
16    (m) At all standardbred race meetings held or conducted
17under authority of a license granted by the Board, and at all
18standardbred races held at county fairs which are approved by
19the Department of Agriculture or at the Illinois or DuQuoin
20State Fairs, no one shall jog, train, warm up or drive a
21standardbred horse unless he or she is wearing a protective
22safety helmet, with the chin strap fastened and in place, which
23meets the standards and requirements as set forth in the 1984
24Standard for Protective Headgear for Use in Harness Racing and
25Other Equestrian Sports published by the Snell Memorial
26Foundation, or any standards and requirements for headgear the

 

 

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1Illinois Racing Board may approve. Any other standards and
2requirements so approved by the Board shall equal or exceed
3those published by the Snell Memorial Foundation. Any
4equestrian helmet bearing the Snell label shall be deemed to
5have met those standards and requirements.
6(Source: P.A. 91-239, eff. 1-1-00.)
 
7    (230 ILCS 5/31.1)  (from Ch. 8, par. 37-31.1)
8    Sec. 31.1. (a) Organization licensees collectively shall
9contribute annually to charity the sum of $1,000,000 $750,000
10to non-profit organizations that provide medical and family,
11counseling, and similar services to persons who reside or work
12on the backstretch of Illinois racetracks. These contributions
13shall be collected as follows: (i) no later than July 1st of
14each year the Board shall assess each organization licensee,
15except those tracks which are not within 100 miles of each
16other which tracks shall pay $40,000 $30,000 annually apiece
17into the Board charity fund, that amount which equals $920,000
18$690,000 multiplied by the amount of pari-mutuel wagering
19handled by the organization licensee in the year preceding
20assessment and divided by the total pari-mutuel wagering
21handled by all Illinois organization licensees, except those
22tracks which are not within 100 miles of each other, in the
23year preceding assessment; (ii) notice of the assessed
24contribution shall be mailed to each organization licensee;
25(iii) within thirty days of its receipt of such notice, each

 

 

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1organization licensee shall remit the assessed contribution to
2the Board. If an organization licensee wilfully fails to so
3remit the contribution, the Board may revoke its license to
4conduct horse racing.
5    (b) No later than October 1st of each year, any qualified
6charitable organization seeking an allotment of contributed
7funds shall submit to the Board an application for those funds,
8using the Board's approved form. No later than December 31st of
9each year, the Board shall distribute all such amounts
10collected that year to such charitable organization
11applicants.
12(Source: P.A. 87-110.)
 
13    (230 ILCS 5/32.1)
14    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
15real estate equalization.
16    (a) In order to encourage new investment in Illinois
17racetrack facilities and mitigate differing real estate tax
18burdens among all racetracks, the licensees affiliated or
19associated with each racetrack that has been awarded live
20racing dates in the current year shall receive an immediate
21pari-mutuel tax credit in an amount equal to the greater of (i)
2250% of the amount of the real estate taxes paid in the prior
23year attributable to that racetrack, or (ii) the amount by
24which the real estate taxes paid in the prior year attributable
25to that racetrack exceeds 60% of the average real estate taxes

 

 

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1paid in the prior year for all racetracks awarded live horse
2racing meets in the current year.
3    Each year, regardless of whether the organization licensee
4conducted live racing in the year of certification, the Board
5shall certify in writing, prior to December 31, the real estate
6taxes paid in that year for each racetrack and the amount of
7the pari-mutuel tax credit that each organization licensee,
8intertrack wagering licensee, and intertrack wagering location
9licensee that derives its license from such racetrack is
10entitled in the succeeding calendar year. The real estate taxes
11considered under this Section for any racetrack shall be those
12taxes on the real estate parcels and related facilities used to
13conduct a horse race meeting and inter-track wagering at such
14racetrack under this Act. In no event shall the amount of the
15tax credit under this Section exceed the amount of pari-mutuel
16taxes otherwise calculated under this Act. The amount of the
17tax credit under this Section shall be retained by each
18licensee and shall not be subject to any reallocation or
19further distribution under this Act. The Board may promulgate
20emergency rules to implement this Section.
21    (b) Beginning on January 1 following the first 12-month
22period that an organization licensee begins conducting
23electronic gaming operations pursuant to Section 56 of this
24Act, an organization licensee shall be ineligible to receive
25the pari-mutuel tax credit provided in subsection (a).
26(Source: P.A. 91-40, eff. 6-25-99.)
 

 

 

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

 

 

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1    (b) The term "hypnotic" as used in this Section includes
2all barbituric acid preparations and derivatives.
3    (c) The term "narcotic" as used in this Section includes
4opium and all its alkaloids, salts, preparations and
5derivatives, cocaine and all its salts, preparations and
6derivatives and substitutes.
7    (d) The provisions of this Section 36 and the treatment
8authorized herein apply to horses entered in and competing in
9race meetings as defined in Section 3.47 of this Act and to
10horses entered in and competing at any county fair.
11(Source: P.A. 79-1185.)
 
12    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)
13    Sec. 40. (a) The imposition of any fine or penalty provided
14in this Act shall not preclude the Board in its rules and
15regulations from imposing a fine or penalty for any other
16action which, in the Board's discretion, is a detriment or
17impediment to horse racing.
18    (b) The Director of Agriculture or his or her authorized
19representative shall impose the following monetary penalties
20and hold administrative hearings as required for failure to
21submit the following applications, lists, or reports within the
22time period, date or manner required by statute or rule or for
23removing a foal from Illinois prior to inspection:
24        (1) late filing of a renewal application for offering
25    or standing stallion for service:

 

 

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

 

 

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

 

 

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1(Source: P.A. 87-397.)
 
2    (230 ILCS 5/56 new)
3    Sec. 56. Electronic gaming.
4    (a) A person, firm, or corporation having operating control
5of a race track may apply to the Gaming Board for an electronic
6gaming license. An electronic gaming license shall authorize
7its holder to conduct electronic gaming on the grounds of the
8race track controlled by the licensee's race track. Only one
9electronic gaming license may be awarded for any race track.
10Each license shall specify the number of gaming positions that
11its holder may operate.
12    An electronic gaming licensee may not permit persons under
1321 years of age to be present in its electronic gaming
14facility, but the licensee may accept wagers on live racing and
15inter-track wagers at its electronic gaming facility.
16    (b) The adjusted gross receipts by an electronic gaming
17licensee from electronic gaming remaining after the payment of
18taxes under Section 13 of the Illinois Gambling Act shall be
19distributed as follows:
20        (1) Amounts shall be paid to the purse account at the
21    track at which the organization licensee is conducting
22    racing equal to the following:
23            12.75% of annual adjusted gross receipts up to and
24        including $75,000,000;
25            20% of annual adjusted gross receipts in excess of

 

 

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1        $75,000,000 but not exceeding $100,000,000;
2            26.5% of annual adjusted gross receipts in excess
3        of $100,000,000 but not exceeding $125,000,000; and
4            20.5% of annual adjusted gross receipts in excess
5        of $125,000,000.
6        (2) The remainder shall be retained by the electronic
7    gaming licensee.
8    (c) Electronic gaming receipts placed into the purse
9account of an organization licensee racing thoroughbred horses
10shall be used for purses, for health care services and worker's
11compensation for racing industry workers, for equine research,
12for programs to care for and transition injured and retired
13thoroughbred horses that race at the race track, or for horse
14ownership promotion, in accordance with the agreement of the
15horsemen's association representing the largest number of
16owners or trainers who race at that organization licensee's
17race meeting. Annually, from the purse account of an
18organization licensee racing thoroughbred horses, an amount
19equal to 12% of the electronic gaming receipts placed into the
20purse accounts shall be paid to the Illinois Thoroughbred
21Breeders Fund and shall be used for owner awards; a stallion
22program pursuant to paragraph (3) of subsection (g) of Section
2330 of this Act; and Illinois conceived and foaled stakes races
24pursuant to paragraph (2) of subsection (g) of Section 30 of
25this Act, as specifically designated by the horsemen's
26association representing the largest number of owners or

 

 

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1trainers who race at the organization licensee's race meeting.
2Annually, from the purse account of an organization licensee
3conducting thoroughbred races at a race track in Madison
4County, an amount equal to 1% of the electronic gaming receipts
5distributed to purses per subsection (b) of this Section 56
6shall be paid as follows: 0.33 1/3% to Southern Illinois
7University Department of Animal Sciences for equine research
8and education, an amount equal to 0.33 1/3% of the electronic
9gaming receipts shall be used to operate laundry facilities for
10backstretch workers at that race track, and an amount equal to
110.33 1/3% of the electronic gaming receipts shall be paid to
12programs to care for injured and unwanted horses that race at
13that race track.
14    Annually, from the purse account of organization licensees
15conducting thoroughbred races at race tracks in Cook County,
16$100,000 shall be paid for division and equal distribution to
17each Illinois public university system engaged in equine
18research and education on or before the effective date of this
19amendatory Act of the 96th General Assembly for equine research
20and education.
21    (d) Annually, from the purse account of an organization
22licensee racing standardbred horses, an amount equal to 15% of
23the electronic gaming receipts placed into that purse account
24shall be paid to the Illinois Colt Stakes Purse Distribution
25Fund. Moneys deposited into the Illinois Colt Stakes Purse
26Distribution Fund shall be used for standardbred racing as

 

 

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1authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
2subsection (g) of Section 31 of this Act and for bonus awards
3as authorized under paragraph 6 of subsection (j) of Section 31
4of this Act.
5    (e) As a requirement for conti