Rep. Lou Lang

Filed: 1/6/2011

 

 


 

 


 
09600SB0737ham002LRB096 06805 ASK 44784 a

1
AMENDMENT TO SENATE BILL 737

2    AMENDMENT NO. ______. Amend Senate Bill 737, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5
"ARTICLE 1.

 
6    Section 1-1. Short title. This Article may be cited as the
7Chicago Casino Development Authority Act.
 
8    Section 1-5. Definitions. As used in this Act:
9    "Authority" means the Chicago Casino Development Authority
10created by this Act.
11    "Board" means the board appointed pursuant to this Act to
12govern and control the Authority.
13    "Casino" means one temporary land-based or water-based
14facility, one permanent land-based or water-based facility,
15and airport gaming locations pursuant to Section 1-67 of this

 

 

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1Act, at each of which lawful gambling is authorized and
2licensed as provided in the Illinois Gambling Act.
3    "City" means the City of Chicago.
4    "Casino operator licensee" means any person or entity
5selected by the Authority and approved and licensed by the
6Gaming Board to manage and operate a casino within the City of
7Chicago pursuant to a casino management contract.
8    "Casino management contract" means a legally binding
9agreement between the Authority and a casino operator licensee
10to operate or manage a casino.
11    "Executive director" means the person appointed by the
12Board to oversee the daily operations of the Authority.
13    "Gaming Board" means the Illinois Gaming Board created by
14the Illinois Gambling Act.
15    "Mayor" means the Mayor of the City.
 
16    Section 1-12. Creation of the Authority. There is hereby
17created a political subdivision, unit of local government with
18only the powers authorized by law, body politic, and municipal
19corporation, by the name and style of the Chicago Casino
20Development Authority.
 
21    Section 1-13. Duties of the Authority. It shall be the duty
22of the Authority, as a casino licensee under the Illinois
23Gambling Act, to promote and maintain a casino in the City. The
24Authority shall construct, equip, and maintain grounds,

 

 

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1buildings, and facilities for that purpose. The Authority shall
2contract with a casino operator licensee to manage and operate
3the casino and in no event shall the Authority or City manage
4or operate the casino. The Authority may contract with other
5third parties in order to fulfill its purpose. The Authority is
6responsible for the payment of any fees required of a casino
7operator under subsection (a) of Section 7.8 of the Illinois
8Gambling Act if the casino operator licensee is late in paying
9any such fees. The Authority is granted all rights and powers
10necessary to perform such duties.
 
11    Section 1-15. Board.
12    (a) The governing and administrative powers of the
13Authority shall be vested in a body known as the Chicago Casino
14Development Board. The Board shall consist of 3 members
15appointed by the Mayor. All appointees shall be subject to
16background investigation and approval by the Gaming Board. One
17of these members shall be designated by the Mayor to serve as
18chairperson. All of the members appointed by the Mayor shall be
19residents of the City.
20    (b) Board members shall receive $300 for each day the
21Authority meets and shall be entitled to reimbursement of
22reasonable expenses incurred in the performance of their
23official duties. A Board member who serves in the office of
24secretary-treasurer may also receive compensation for services
25provided as that officer.
 

 

 

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1    Section 1-20. Terms of appointments; resignation and
2removal.
3    (a) The Mayor shall appoint one member of the Board for an
4initial term expiring July 1 of the year following approval by
5the Gaming Board, one member for an initial term expiring July
61 three years following approval by the Gaming Board, and one
7member for an initial term expiring July 1 five years following
8approval by the Gaming Board.
9    (b) All successors shall hold office for a term of 5 years
10from the first day of July of the year in which they are
11appointed, except in the case of an appointment to fill a
12vacancy. Each member, including the chairperson, shall hold
13office until the expiration of his or her term and until his or
14her successor is appointed and qualified. Nothing shall
15preclude a member from serving consecutive terms. Any member
16may resign from office, to take effect when a successor has
17been appointed and qualified. A vacancy in office shall occur
18in the case of a member's death or indictment, conviction, or
19plea of guilty to a felony. A vacancy shall be filled for the
20unexpired term by the Mayor with the approval of the Gaming
21Board.
22    (c) The Mayor or the Gaming Board may remove any member of
23the Board upon a finding of incompetence, neglect of duty, or
24misfeasance or malfeasance in office or for a violation of this
25Act. The Gaming Board may remove any member of the Board for

 

 

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1any violation of the Illinois Gambling Act or the rules and
2regulations of the Gaming Board.
 
3    Section 1-25. Organization of Board; meetings. After
4appointment by the Mayor and approval of the Gaming Board, the
5Board shall organize for the transaction of business. The Board
6shall prescribe the time and place for meetings, the manner in
7which special meetings may be called, and the notice that must
8be given to members. All actions and meetings of the Board
9shall be subject to the provisions of the Open Meetings Act.
10Two members of the Board shall constitute a quorum. All
11substantive action of the Board shall be by resolution with an
12affirmative vote of a majority of the members.
 
13    Section 1-30. Executive director; officers.
14    (a) The Board shall appoint an executive director, subject
15to completion of a background investigation and approval by the
16Gaming Board, who shall be the chief executive officer of the
17Authority. The Board shall fix the compensation of the
18executive director. Subject to the general control of the
19Board, the executive director shall be responsible for the
20management of the business, properties, and employees of the
21Authority. The executive director shall direct the enforcement
22of all resolutions, rules, and regulations of the Board, and
23shall perform such other duties as may be prescribed from time
24to time by the Board. All employees and independent

 

 

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1contractors, consultants, engineers, architects, accountants,
2attorneys, financial experts, construction experts and
3personnel, superintendents, managers, and other personnel
4appointed or employed pursuant to this Act shall report to the
5executive director. In addition to any other duties set forth
6in this Act, the executive director shall do all of the
7following:
8        (1) Direct and supervise the administrative affairs
9    and activities of the Authority in accordance with its
10    rules, regulations, and policies.
11        (2) Attend meetings of the Board.
12        (3) Keep minutes of all proceedings of the Board.
13        (4) Approve all accounts for salaries, per diem
14    payments, and allowable expenses of the Board and its
15    employees and consultants.
16        (5) Report and make recommendations to the Board
17    concerning the terms and conditions of any casino
18    management contract.
19        (6) Perform any other duty that the Board requires for
20    carrying out the provisions of this Act.
21        (7) Devote his or her full time to the duties of the
22    office and not hold any other office or employment.
23    (b) The Board may select a secretary-treasurer to hold
24office at the pleasure of the Board. The Board shall fix the
25duties of such officer.
 

 

 

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1    Section 1-31. General rights and powers of the Authority.
2In addition to the duties and powers set forth in this Act, the
3Authority shall have the following rights and powers:
4        (1) Adopt and alter an official seal.
5        (2) Establish and change its fiscal year.
6        (3) Sue and be sued, plead and be impleaded, all in its
7    own name, and agree to binding arbitration of any dispute
8    to which it is a party.
9        (4) Adopt, amend, and repeal bylaws, rules, and
10    regulations consistent with the furtherance of the powers
11    and duties provided for.
12        (5) Maintain its principal office within the City and
13    such other offices as the Board may designate.
14        (6) Select locations in the City for a temporary and a
15    permanent casino, subject to final approval by the Gaming
16    Board.
17        (7) Conduct background investigations of potential
18    casino operator licensees, including its principals or
19    shareholders, and Authority staff.
20        (8) Employ, either as regular employees or independent
21    contractors, consultants, engineers, architects,
22    accountants, attorneys, financial experts, construction
23    experts and personnel, superintendents, managers and other
24    professional personnel, and such other personnel as may be
25    necessary in the judgment of the Board, and fix their
26    compensation.

 

 

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1        (9) Own, acquire, construct, equip, lease, operate,
2    and maintain grounds, buildings, and facilities to carry
3    out its corporate purposes and duties.
4        (10) Enter into, revoke, and modify contracts in
5    accordance with the rules of the Gaming Board.
6        (11) Enter into a casino management contract subject to
7    the final approval of the Gaming Board.
8        (12) Develop, or cause to be developed by a third
9    party, a master plan for the design, planning, and
10    development of a casino.
11        (13) Negotiate and enter into intergovernmental
12    agreements with the State and its agencies, the City, and
13    other units of local government, in furtherance of the
14    powers and duties of the Board. However, the Authority may
15    not enter into an agreement with the State Police.
16        (14) Receive and disburse funds for its own corporate
17    purposes or as otherwise specified in this Act.
18        (15) Borrow money from any source, public or private,
19    for any corporate purpose, including, without limitation,
20    working capital for its operations, reserve funds, or
21    payment of interest, and to mortgage, pledge, or otherwise
22    encumber the property or funds of the Authority and to
23    contract with or engage the services of any person in
24    connection with any financing, including financial
25    institutions, issuers of letters of credit, or insurers and
26    enter into reimbursement agreements with this person or

 

 

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1    entity which may be secured as if money were borrowed from
2    the person or entity.
3        (16) Issue bonds as provided for under this Act.
4        (17) Receive and accept from any source, private or
5    public, contributions, gifts, or grants of money or
6    property to the Authority.
7        (18) Provide for the insurance of any property,
8    operations, officers, members, agents, or employees of the
9    Authority against any risk or hazard, to self-insure or
10    participate in joint self-insurance pools or entities to
11    insure against such risk or hazard, and to provide for the
12    indemnification of its officers, members, employees,
13    contractors, or agents against any and all risks.
14        (19) Exercise all the corporate powers granted
15    Illinois corporations under the Business Corporation Act
16    of 1983, except to the extent that powers are inconsistent
17    with those of a body politic and corporate of the State.
18        (20) Do all things necessary or convenient to carry out
19    the powers granted by this Act.
 
20    Section 1-32. Ethical Conduct.
21    (a) Board members and employees of the Authority must carry
22out their duties and responsibilities in such a manner as to
23promote and preserve public trust and confidence in the
24integrity and conduct of gaming.
25    (b) Except as may be required in the conduct of official

 

 

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1duties, Board members and employees of the Authority shall not
2engage in gambling on any riverboat, in any casino, or in an
3electronic gaming facility licensed by the Illinois Gaming
4Board or engage in legalized gambling in any establishment
5identified by Board action that, in the judgment of the Board,
6could represent a potential for a conflict of interest.
7    (c) A Board member or employee of the Authority shall not
8use or attempt to use his or her official position to secure or
9attempt to secure any privilege, advantage, favor, or influence
10for himself or herself or others.
11    (d) Board members and employees of the Authority shall not
12hold or pursue employment, office, position, business, or
13occupation that may conflict with his or her official duties.
14Employees may engage in other gainful employment so long as
15that employment does not interfere or conflict with their
16duties. Such employment must be disclosed to the executive
17director and approved by the Board.
18    (e) Board members and employees of the Authority may not
19engage in employment, communications, or any activity that may
20be deemed a conflict of interest. This prohibition shall extend
21to any act identified by Board action or Gaming Board action
22that, in the judgment of either entity, could represent the
23potential for or the appearance of a conflict of interest.
24    (f) Board members and employees of the Authority may not
25have a financial interest, directly or indirectly, in his or
26her own name or in the name of any other person, partnership,

 

 

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

 

 

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1    (i) A spouse, child, or parent of a Board member or
2employee of the Authority may not have a financial interest,
3directly or indirectly, in his or her own name or in the name
4of any other person, partnership, association, trust,
5corporation, or other entity in any contract or subcontract for
6the performance of any work for the Authority. This prohibition
7shall extend to the holding or acquisition of an interest in
8any entity identified by Board action or Gaming Board action
9that, in the judgment of either entity, could represent the
10potential for or the appearance of a conflict of interest. The
11holding or acquisition of an interest in such entities through
12an indirect means, such as through a mutual fund, shall not be
13prohibited, expect that the Gaming Board may identify specific
14investments or funds that, in its judgment, are so influenced
15by gaming holdings as to represent the potential for or the
16appearance of a conflict of interest.
17    (j) A spouse, child, or parent of a Board member or
18employee of the Authority may not accept any gift, gratuity,
19service, compensation, travel, lodging, or thing of value, with
20the exception of unsolicited items of an incidental nature,
21from any person, corporation, or entity doing business with the
22Authority.
23    (k) A spouse, child, or parent of a Board member or
24employee of the Authority may not, while the person is a Board
25member or employee of the spouse or within a period of 2 years
26immediately after termination of employment, knowingly accept

 

 

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1employment or receive compensation or fees for services from a
2person or entity, or its parent or affiliate, that has engaged
3in business with the Authority that resulted in contracts with
4an aggregate value of at least $25,000 or if that Board member
5or employee has made a decision that directly applied to the
6person or entity, or its parent or affiliate.
7    (l) No Board member or employee of the Authority may
8attempt, in any way, to influence any person or corporation
9doing business with the Authority or any officer, agent, or
10employee thereof to hire or contract with any person or
11corporation for any compensated work.
12    (m) Any communication between an elected official of the
13City and any applicant for or party to a casino management
14contract with the Authority, or an officer, director, or
15employee thereof, concerning any manner relating in any way to
16gaming or the Authority shall be disclosed to the Board and the
17Gaming Board. Such disclosure shall be in writing by the
18official within 30 days of the communication and shall be filed
19with the Board. Disclosure must consist of the date of the
20communication, the identity and job title of the person with
21whom the communication was made, a brief summary of the
22communication, the action requested or recommended, all
23responses made, the identity and job title of the person making
24the response, and any other pertinent information.
25    Public disclosure of the written summary provided to the
26Board and the Gaming Board shall be subject to the exemptions

 

 

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1provided under Section 7 of the Freedom of Information Act.
2    (n) Any Board member or employee of the Authority who
3violates any provision of this Section is guilty of a Class 4
4felony.
 
5    Section 1-45. Casino management contracts.
6    (a) The Board shall develop and administer a competitive
7sealed bidding process for the selection of a potential casino
8operator licensee to develop or operate a casino within the
9City. The Board shall issue one or more requests for proposals.
10The Board may establish minimum financial and investment
11requirements to determine the eligibility of persons to respond
12to the Board's requests for proposal, and may establish and
13consider such other criteria as it deems appropriate. The Board
14may impose a fee upon persons who respond to requests for
15proposal, in order to reimburse the Board for its costs in
16preparing and issuing the requests and reviewing the proposals.
17    (b) Within 5 days after the time limit for submitting bids
18and proposals has passed, the Board shall make all bids and
19proposals public, provided, however, the Board shall not be
20required to disclose any information which would be exempt from
21disclosure under Section 7 of the Freedom of Information Act.
22Thereafter, the Board shall evaluate the responses to its
23requests for proposal and the ability of all persons or
24entities responding to its requests for proposal to meet the
25requirements of this Act and to undertake and perform the

 

 

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1obligations set forth in its requests for proposal.
2    (c) After reviewing proposals and subject to Gaming Board
3approval, the Board shall enter into a casino management
4contract authorizing the development, construction, or
5operation of a casino. Validity of the casino management
6contract is contingent upon the issuance of a casino operator
7license to the successful bidder. If the Gaming Board approves
8the contract and grants a casino operator license, the Board
9shall transmit a copy of the executed casino management
10contract to the Gaming Board.
11    (d) After the Authority has been issued a casino license,
12the Gaming Board has issued a casino operator license, and the
13Gaming Board has approved the location of a temporary facility,
14the Authority may conduct gaming operations at a temporary
15facility for no longer than 24 months after gaming operations
16begin. The Gaming Board may, after holding a public hearing,
17grant an extension so long as a permanent facility is not
18operational and the Authority is working in good faith to
19complete the permanent facility. The Gaming Board may grant
20additional extensions following a public hearing. Each
21extension may be for a period of no longer than 6 months.
22    (e) Fifty percent of the total amount received by the
23Authority pursuant to a bid for a casino management contract or
24an executed casino management contract must be transmitted to
25the State and deposited into the Gaming Facilities Fee Revenue
26Fund.
 

 

 

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1    Section 1-50. Transfer of funds. The revenues received by
2the Authority (other than amounts required to be paid pursuant
3to the Illinois Gambling Act and amounts required to pay the
4operating expenses of the Authority, to pay amounts due the
5casino operator licensee pursuant to a casino management
6contract, to repay any borrowing of the Authority made pursuant
7to Section 1-31, to pay debt service on any bonds issued under
8Section 1-75, and to pay any expenses in connection with the
9issuance of such bonds pursuant to Section 1-75 or derivative
10products pursuant to Section 1-85) shall be transferred to the
11City by the Authority.
 
12    Section 1-55. Municipal distributions of proceeds from a
13casino; gaming endowment funds. At least 70% of the moneys that
14a municipality in which a casino is located receives pursuant
15to Section 1-50 of this Act shall be described as "gaming
16endowment funds" and be expended or obligated by the
17municipality for the following purposes and in the following
18amounts:
19        (1) 40% of such gaming endowment funds shall be used
20    for or pledged for the construction and maintenance of
21    infrastructure within the municipality, including but not
22    limited to roads, bridges, transit infrastructure, and
23    municipal facilities.
24        (2) 60% of such gaming endowment funds shall be used

 

 

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1    for or pledged for the construction and maintenance of
2    schools, parks, cultural institution facilities, museums
3    within the municipality, and facilities at Navy Pier that
4    are owned by the Metropolitan Pier and Exposition
5    Authority.
 
6    Section 1-60. Auditor General.
7    (a) Prior to the issuance of bonds under this Act, the
8Authority shall submit to the Auditor General a certification
9that:
10        (1) it is legally authorized to issue bonds;
11        (2) scheduled annual payments of principal and
12    interest on the bonds to be issued meet the requirements of
13    Section 1-75 of this Act;
14        (3) no bond shall mature later than 30 years; and
15        (4) after payment of costs of issuance and necessary
16    deposits to funds and accounts established with respect to
17    debt service on the bonds, the net bond proceeds (exclusive
18    of any proceeds to be used to refund outstanding bonds)
19    will be used only for the purposes set forth in this Act.
20    The Authority also shall submit to the Auditor General its
21projections on revenues to be generated and pledged to
22repayment of the bonds as scheduled and such other information
23as the Auditor General may reasonably request.
24    The Auditor General shall examine the certifications and
25information submitted and submit a report to the Authority and

 

 

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1the Gaming Board indicating whether the required
2certifications, projections, and other information have been
3submitted by the Authority and that the assumptions underlying
4the projections are not unreasonable in the aggregate. The
5Auditor General shall submit the report no later than 60 days
6after receiving the information required to be submitted by the
7Authority.
8    The Authority shall not issue bonds until it receives the
9report from the Auditor General indicating the requirements of
10this Section have been met. The Auditor General's report shall
11not be in the nature of a post-audit or examination and shall
12not lead to the issuance of an opinion, as that term is defined
13in generally accepted government auditing standards. The
14Auditor General shall submit a bill to the Authority for costs
15associated with the examinations and report required under this
16Section. The Authority shall reimburse in a timely manner.
17    (b) The Authority shall enter into an intergovernmental
18agreement with the Auditor General authorizing the Auditor
19General to, every 2 years, (i) review the financial audit of
20the Authority performed by the Authority's certified public
21accountants, (ii) perform a management audit of the Authority,
22and (iii) perform a management audit of the casino operator
23licensee. The Auditor General shall provide the Authority and
24the General Assembly with the audits and shall post a copy on
25his or her website. The Auditor General shall submit a bill to
26the Authority for costs associated with the review and the

 

 

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1audit required under this Section, which costs shall not exceed
2$100,000, and the Authority shall reimburse the Auditor General
3for such costs in a timely manner.
 
4    Section 1-62. Advisory committee. An Advisory Committee is
5established to monitor, review, and report on (1) the
6Authority's utilization of minority-owned business enterprises
7and female-owned business enterprises, (2) employment of
8females, and (3) employment of minorities with regard to the
9development and construction of the casino as authorized under
10Section 7 of the Illinois Gambling Act. The Authority shall
11work with the Advisory Committee in accumulating necessary
12information for the Committee to submit reports, as necessary,
13to the General Assembly and to the City of Chicago.
14    The Committee shall consist of 11 members as provided in
15this Section. Four members shall be selected by the Governor, 3
16members shall be selected by the Mayor of the City of Chicago;
17one member shall be selected by the President of the Illinois
18Senate; one member shall be selected by the Speaker of the
19House of Representatives; one member shall be selected by the
20Minority Leader of the Senate; and one member shall be selected
21by the Minority Leader of the House of Representatives. The
22Advisory Committee shall meet periodically and shall report the
23information to the Mayor of the City and to the General
24Assembly by December 31st of every year.
25    The Advisory Committee shall be dissolved on the date that

 

 

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1casino gambling operations are first conducted under the
2license authorized under Section 7 of the Illinois Gambling
3Act, other than at a temporary facility.
4    For the purposes of this Section, the terms "female" and
5"minority person" have the meanings provided in Section 2 of
6the Business Enterprise for Minorities, Females, and Persons
7with Disabilities Act.
 
8    Section 1-65. Acquisition of property; eminent domain
9proceedings. For the lawful purposes of this Act, the City may
10acquire by eminent domain or by condemnation proceedings in the
11manner provided by the Eminent Domain Act, real or personal
12property or interests in real or personal property located in
13the City, and the City may convey to the Authority property so
14acquired. The acquisition of property under this Section is
15declared to be for a public use.
 
16    Section 1-67. Limitations on gaming at Chicago airports.
17The Authority may conduct gaming operations in an airport under
18the administration or control of the Chicago Department of
19Aviation so long as (i) gaming operations are conducted in a
20secured area that is only available to airline passengers and
21not the general public, (ii) gaming operations are limited to
22slot machines, as defined in Section 4 of the Illinois Gambling
23Act, and (iii) the combined number of gaming positions in
24Chicago at the airports and at the other authorized facility

 

 

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1does not exceed the maximum number of gaming positions
2authorized pursuant to subsection (g) of Section 7 of the
3Illinois Gambling Act. Gaming operations at an airport are
4subject to all applicable laws and rules that apply to any
5other gaming facility under this Act or the Illinois Gambling
6Act.
 
7    Section 1-70. Local regulation. The casino facilities and
8operations therein shall be subject to all ordinances and
9regulations of the City. The construction, development, and
10operation of the casino shall comply with all ordinances,
11regulations, rules, and controls of the City, including but not
12limited to those relating to zoning and planned development,
13building, fire prevention, and land use. However, the
14regulation of gaming operations is subject to the exclusive
15jurisdiction of the Gaming Board.
 
16    Section 1-75. Borrowing.
17    (a) The Authority may borrow money and issue bonds as
18provided in this Section. Bonds of the Authority may be issued
19to provide funds for land acquisition, site assembly and
20preparation, and the design and construction of the casino, as
21defined in the Illinois Gambling Act, all ancillary and related
22facilities comprising the casino complex, and all on-site and
23off-site infrastructure improvements required in connection
24with the development of the casino; to refund (at the time or

 

 

09600SB0737ham002- 22 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 23 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 24 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 25 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 26 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 27 -LRB096 06805 ASK 44784 a

1otherwise against the Authority, irrespective of whether the
2person has notice. No resolution, trust indenture, management
3agreement or financing statement, continuation statement, or
4other instrument adopted or entered into by the Authority need
5be filed or recorded in any public record other than the
6records of the Authority in order to perfect the lien against
7third persons, regardless of any contrary provision of law.
8    (i) Bonds that are being paid or retired by issuance, sale,
9or delivery of bonds, and bonds for which sufficient funds have
10been deposited with the paying agent or trustee to provide for
11payment of principal and interest thereon, and any redemption
12premium, as provided in the authorizing resolution, shall not
13be considered outstanding for the purposes of this subsection.
14    (j) The bonds of the Authority shall not be indebtedness of
15the State. The bonds of the Authority are not general
16obligations of the State and are not secured by a pledge of the
17full faith and credit of the State and the holders of bonds of
18the Authority may not require, except as provided in this Act,
19the application of State revenues or funds to the payment of
20bonds of the Authority.
21    (k) The State of Illinois pledges and agrees with the
22owners of the bonds that it will not limit or alter the rights
23and powers vested in the Authority by this Act so as to impair
24the terms of any contract made by the Authority with the owners
25or in any way impair the rights and remedies of the owners
26until the bonds, together with interest on them, and all costs

 

 

09600SB0737ham002- 28 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 29 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 30 -LRB096 06805 ASK 44784 a

1shall include the Authority's available funds and estimated
2revenues and shall provide for payment of its obligations and
3estimated expenditures for the fiscal year, including, without
4limitation, expenditures for administration, operation,
5maintenance and repairs, debt service, and deposits into
6reserve and other funds and capital projects.
7    (b) The Board shall annually cause the finances of the
8Authority to be audited by a firm of certified public
9accountants selected by the Board in accordance with the rules
10of the Gaming Board and post the firm's audits of the Authority
11on the Authority's Internet website.
12    (c) The Board shall, for each fiscal year, prepare an
13annual report setting forth information concerning its
14activities in the fiscal year and the status of the development
15of the casino. The annual report shall include the audited
16financial statements of the Authority for the fiscal year, the
17budget for the succeeding fiscal year, and the current capital
18plan as of the date of the report. Copies of the annual report
19shall be made available to persons who request them and shall
20be submitted not later than 120 days after the end of the
21Authority's fiscal year or, if the audit of the Authority's
22financial statements is not completed within 120 days after the
23end of the Authority's fiscal year, as soon as practical after
24completion of the audit, to the Governor, the Mayor, the
25General Assembly, and the Commission on Government Forecasting
26and Accountability.
 

 

 

09600SB0737ham002- 31 -LRB096 06805 ASK 44784 a

1    Section 1-110. Deposit and withdrawal of funds.
2    (a) All funds deposited by the Authority in any bank or
3savings and loan association shall be placed in the name of the
4Authority and shall be withdrawn or paid out only by check or
5draft upon the bank or savings and loan association, signed by
62 officers or employees designated by the Board.
7Notwithstanding any other provision of this Section, the Board
8may designate any of its members or any officer or employee of
9the Authority to authorize the wire transfer of funds deposited
10by the secretary-treasurer of funds in a bank or savings and
11loan association for the payment of payroll and employee
12benefits-related expenses.
13    No bank or savings and loan association shall receive
14public funds as permitted by this Section unless it has
15complied with the requirements established pursuant to Section
166 of the Public Funds Investment Act.
17    (b) If any officer or employee whose signature appears upon
18any check or draft issued pursuant to this Act ceases (after
19attaching his signature) to hold his or her office before the
20delivery of such a check or draft to the payee, his or her
21signature shall nevertheless be valid and sufficient for all
22purposes with the same effect as if he or she had remained in
23office until delivery thereof.
 
24    Section 1-112. Contracts with the Authority or casino

 

 

09600SB0737ham002- 32 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 33 -LRB096 06805 ASK 44784 a

1disclosure must be submitted to the Gaming Board with a copy of
2the contract.
3    (c) As used in this Section:
4    "Contribution" means contribution as defined in Section
59-1.4 of the Election Code.
6    "Affiliated person" means (i) any person with any ownership
7interest or distributive share of the bidding, responding, or
8contracting entity in excess of 1%, (ii) executive employees of
9the bidding, responding, or contracting entity, and (iii) the
10spouse and minor children of any such persons.
11    "Affiliated entity" means (i) any parent or subsidiary of
12the bidding or contracting entity, (ii) any member of the same
13unitary business group, or (iii) any political committee for
14which the bidding, responding, or contracting entity is the
15sponsoring entity.
16    (d) The Gaming Board may direct the Authority or a casino
17operator licensee to void a contract if a violation of this
18Section occurs. The Authority may direct a casino operator
19licensee to void a contract if a violation of this Section
20occurs.
 
21    Section 1-115. Purchasing.
22    (a) All construction contracts and contracts for supplies,
23materials, equipment, and services, when the cost thereof to
24the Authority exceeds $25,000, shall be let by a competitive
25selection process to the lowest responsible proposer, after

 

 

09600SB0737ham002- 34 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 35 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 36 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 37 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 38 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 39 -LRB096 06805 ASK 44784 a

1with public and private educational institutions and persons in
2the gaming, entertainment, hospitality, and tourism industries
3to provide training for employment in those industries.
 
4    Section 1-140. Home rule. The regulation and licensing of
5casinos and casino gaming, casino gaming facilities, and casino
6operator licensees under this Act are exclusive powers and
7functions of the State. A home rule unit may not regulate or
8license casinos, casino gaming, casino gaming facilities, or
9casino operator licensees under this Act, except as provided
10under this Act. This Section is a denial and limitation of home
11rule powers and functions under subsection (h) of Section 6 of
12Article VII of the Illinois Constitution.
 
13
ARTICLE 90.

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

 

 

09600SB0737ham002- 40 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 41 -LRB096 06805 ASK 44784 a

1    million in recurring annual tax revenue for the State to
2    help ensure that school, road, and other building projects
3    promised under the capital plan occur on schedule.
4        (9) That Illinois agriculture and other businesses
5    that support and supply the horse racing industry, already
6    a sector that employs over 37,000 Illinoisans, also stand
7    to substantially benefit and would be much more likely to
8    create additional jobs should Illinois horse racing once
9    again become competitive with other states.
10        (10) That by keeping these projects on track, the State
11    can be sure that significant job and economic growth will
12    in fact result from the previously enacted legislation.
13        (11) That gaming machines at Illinois horse racing
14    tracks would create an estimated 1,200 to 1,500 permanent
15    jobs, and an estimated capital investment of up to $200
16    million to $400 million at these race tracks would prompt
17    additional trade organization jobs necessary to construct
18    new facilities or remodel race tracks to operate electronic
19    gaming.
 
20    Section 90-3. The State Officials and Employees Ethics Act
21is amended by changing Section 5-45 as follows:
 
22    (5 ILCS 430/5-45)
23    Sec. 5-45. Procurement; revolving door prohibition.
24    (a) No former officer, member, or State employee, or spouse

 

 

09600SB0737ham002- 42 -LRB096 06805 ASK 44784 a

1or immediate family member living with such person, shall,
2within a period of one year immediately after termination of
3State employment, knowingly accept employment or receive
4compensation or fees for services from a person or entity if
5the officer, member, or State employee, during the year
6immediately preceding termination of State employment,
7participated personally and substantially in the award of State
8contracts, or the issuance of State contract change orders,
9with a cumulative value of $25,000 or more to the person or
10entity, or its parent or subsidiary.
11    (b) No former officer of the executive branch or State
12employee of the executive branch with regulatory or licensing
13authority, or spouse or immediate family member living with
14such person, shall, within a period of one year immediately
15after termination of State employment, knowingly accept
16employment or receive compensation or fees for services from a
17person or entity if the officer or State employee, during the
18year immediately preceding termination of State employment,
19participated personally and substantially in making a
20regulatory or licensing decision that directly applied to the
21person or entity, or its parent or subsidiary.
22    (c) Within 6 months after the effective date of this
23amendatory Act of the 96th General Assembly, each executive
24branch constitutional officer and legislative leader, the
25Auditor General, and the Joint Committee on Legislative Support
26Services shall adopt a policy delineating which State positions

 

 

09600SB0737ham002- 43 -LRB096 06805 ASK 44784 a

1under his or her jurisdiction and control, by the nature of
2their duties, may have the authority to participate personally
3and substantially in the award of State contracts or in
4regulatory or licensing decisions. The Governor shall adopt
5such a policy for all State employees of the executive branch
6not under the jurisdiction and control of any other executive
7branch constitutional officer.
8    The policies required under subsection (c) of this Section
9shall be filed with the appropriate ethics commission
10established under this Act or, for the Auditor General, with
11the Office of the Auditor General.
12    (d) Each Inspector General shall have the authority to
13determine that additional State positions under his or her
14jurisdiction, not otherwise subject to the policies required by
15subsection (c) of this Section, are nonetheless subject to the
16notification requirement of subsection (f) below due to their
17involvement in the award of State contracts or in regulatory or
18licensing decisions.
19    (e) The Joint Committee on Legislative Support Services,
20the Auditor General, and each of the executive branch
21constitutional officers and legislative leaders subject to
22subsection (c) of this Section shall provide written
23notification to all employees in positions subject to the
24policies required by subsection (c) or a determination made
25under subsection (d): (1) upon hiring, promotion, or transfer
26into the relevant position; and (2) at the time the employee's

 

 

09600SB0737ham002- 44 -LRB096 06805 ASK 44784 a

1duties are changed in such a way as to qualify that employee.
2An employee receiving notification must certify in writing that
3the person was advised of the prohibition and the requirement
4to notify the appropriate Inspector General in subsection (f).
5    (f) Any State employee in a position subject to the
6policies required by subsection (c) or to a determination under
7subsection (d), but who does not fall within the prohibition of
8subsection (h) below, who is offered non-State employment
9during State employment or within a period of one year
10immediately after termination of State employment shall, prior
11to accepting such non-State employment, notify the appropriate
12Inspector General. Within 10 calendar days after receiving
13notification from an employee in a position subject to the
14policies required by subsection (c), such Inspector General
15shall make a determination as to whether the State employee is
16restricted from accepting such employment by subsection (a) or
17(b). In making a determination, in addition to any other
18relevant information, an Inspector General shall assess the
19effect of the prospective employment or relationship upon
20decisions referred to in subsections (a) and (b), based on the
21totality of the participation by the former officer, member, or
22State employee in those decisions. A determination by an
23Inspector General must be in writing, signed and dated by the
24Inspector General, and delivered to the subject of the
25determination within 10 calendar days or the person is deemed
26eligible for the employment opportunity. For purposes of this

 

 

09600SB0737ham002- 45 -LRB096 06805 ASK 44784 a

1subsection, "appropriate Inspector General" means (i) for
2members and employees of the legislative branch, the
3Legislative Inspector General; (ii) for the Auditor General and
4employees of the Office of the Auditor General, the Inspector
5General provided for in Section 30-5 of this Act; and (iii) for
6executive branch officers and employees, the Inspector General
7having jurisdiction over the officer or employee. Notice of any
8determination of an Inspector General and of any such appeal
9shall be given to the ultimate jurisdictional authority, the
10Attorney General, and the Executive Ethics Commission.
11    (g) An Inspector General's determination regarding
12restrictions under subsection (a) or (b) may be appealed to the
13appropriate Ethics Commission by the person subject to the
14decision or the Attorney General no later than the 10th
15calendar day after the date of the determination.
16    On appeal, the Ethics Commission or Auditor General shall
17seek, accept, and consider written public comments regarding a
18determination. In deciding whether to uphold an Inspector
19General's determination, the appropriate Ethics Commission or
20Auditor General shall assess, in addition to any other relevant
21information, the effect of the prospective employment or
22relationship upon the decisions referred to in subsections (a)
23and (b), based on the totality of the participation by the
24former officer, member, or State employee in those decisions.
25The Ethics Commission shall decide whether to uphold an
26Inspector General's determination within 10 calendar days or

 

 

09600SB0737ham002- 46 -LRB096 06805 ASK 44784 a

1the person is deemed eligible for the employment opportunity.
2    (h) The following officers, members, or State employees
3shall not, within a period of one year immediately after
4termination of office or State employment, knowingly accept
5employment or receive compensation or fees for services from a
6person or entity if the person or entity or its parent or
7subsidiary, during the year immediately preceding termination
8of State employment, was a party to a State contract or
9contracts with a cumulative value of $25,000 or more involving
10the officer, member, or State employee's State agency, or was
11the subject of a regulatory or licensing decision involving the
12officer, member, or State employee's State agency, regardless
13of whether he or she participated personally and substantially
14in the award of the State contract or contracts or the making
15of the regulatory or licensing decision in question:
16        (1) members or officers;
17        (2) members of a commission or board created by the
18    Illinois Constitution;
19        (3) persons whose appointment to office is subject to
20    the advice and consent of the Senate;
21        (4) the head of a department, commission, board,
22    division, bureau, authority, or other administrative unit
23    within the government of this State;
24        (5) chief procurement officers, State purchasing
25    officers, and their designees whose duties are directly
26    related to State procurement; and

 

 

09600SB0737ham002- 47 -LRB096 06805 ASK 44784 a

1        (6) chiefs of staff, deputy chiefs of staff, associate
2    chiefs of staff, assistant chiefs of staff, and deputy
3    governors; .
4        (7) employees of the Illinois Racing Board; and
5        (8) employees of the Illinois Gaming Board.
6(Source: P.A. 96-555, eff. 8-18-09.)
 
7    Section 90-5. The Alcoholism and Other Drug Abuse and
8Dependency Act is amended by changing Section 5-20 as follows:
 
9    (20 ILCS 301/5-20)
10    Sec. 5-20. Compulsive gambling program.
11    (a) Subject to appropriation, the Department shall
12establish a program for public education, research, and
13training regarding problem and compulsive gambling and the
14treatment and prevention of problem and compulsive gambling.
15Subject to specific appropriation for these stated purposes,
16the program must include all of the following:
17        (1) Establishment and maintenance of a toll-free "800"
18    telephone number to provide crisis counseling and referral
19    services to families experiencing difficulty as a result of
20    problem or compulsive gambling.
21        (2) Promotion of public awareness regarding the
22    recognition and prevention of problem and compulsive
23    gambling.
24        (3) Facilitation, through in-service training and

 

 

09600SB0737ham002- 48 -LRB096 06805 ASK 44784 a

1    other means, of the availability of effective assistance
2    programs for problem and compulsive gamblers.
3        (4) Conducting studies to identify adults and
4    juveniles in this State who are, or who are at risk of
5    becoming, problem or compulsive gamblers.
6    (b) Subject to appropriation, the Department shall either
7establish and maintain the program or contract with a private
8or public entity for the establishment and maintenance of the
9program. Subject to appropriation, either the Department or the
10private or public entity shall implement the toll-free
11telephone number, promote public awareness, and conduct
12in-service training concerning problem and compulsive
13gambling.
14    (c) Subject to appropriation, the Department shall produce
15and supply the signs specified in Section 10.7 of the Illinois
16Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
171975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
18of the Charitable Games Act, and Section 13.1 of the Illinois
19Riverboat Gambling Act.
20(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
21    Section 90-7. The Department of Commerce and Economic
22Opportunity Law of the Civil Administrative Code of Illinois is
23amended by adding Section 605-530 as follows:
 
24    (20 ILCS 605/605-530 new)

 

 

09600SB0737ham002- 49 -LRB096 06805 ASK 44784 a

1    Sec. 605-530. The Depressed Communities Economic
2Development Board.
3    (a) The Depressed Communities Economic Development Board
4is created as an advisory board within the Department of
5Commerce and Economic Opportunity. The Board shall consist of 8
6members as follows:
7        (1) One member appointed by the President of the Senate
8    to serve an initial term of 2 years.
9        (2) One member appointed by the Minority Leader of the
10    Senate to serve an initial term of one year.
11        (3) One member appointed by the Speaker of the House of
12    Representatives to serve an initial term of 2 years.
13        (4) One member appointed by the Minority Leader of the
14    House of Representatives to serve an initial term of one
15    year.
16        (5) Four members appointed by the Governor, 2 of whom
17    are appointed to serve an initial term of one year and 2 of
18    whom are appointed to serve an initial term of 2 years with
19    one being designated as chair of the Board at the time of
20    appointment.
21    After the initial terms, each member shall be appointed to
22serve a term of 2 years and until his or her successor has been
23appointed and assumes office. If a vacancy occurs in the Board
24membership, then the vacancy shall be filled in the same manner
25as the initial appointment. No member of the Board shall, at
26the time of his or her appointment or within 2 years before the

 

 

09600SB0737ham002- 50 -LRB096 06805 ASK 44784 a

1appointment, hold elected office or be appointed to a State
2board, commission, or agency. All Board members are subject to
3the State Officials and Employees Ethics Act.
4    (b) Board members shall serve without compensation, but may
5be reimbursed for their reasonable travel expenses from funds
6available for that purpose. The Department of Commerce and
7Economic Opportunity shall provide staff and administrative
8support services to the Board.
9    (c) The Board must make recommendations, which must be
10approved by a majority of the Board, to the Department of
11Commerce and Economic Opportunity concerning the award of
12grants from amounts appropriated to the Department from the
13Depressed Communities Economic Development Fund, a special
14fund created in the State treasury. The Department must make
15grants to public or private entities submitting proposals to
16the Board to revitalize an Illinois depressed community. Grants
17may be used by these entities only for those purposes
18conditioned with the grant. For the purposes of this subsection
19(c), plans for revitalizing an Illinois depressed community
20include plans intended to curb high levels of poverty,
21unemployment, job and population loss, and general distress. An
22Illinois depressed community is an area where the poverty rate,
23as determined by using the most recent data released by the
24United States Census Bureau, is at least 3% greater than the
25State poverty rate as determined by using the most recent data
26released by the United States Census Bureau.
 

 

 

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1    Section 90-10. The Department of Revenue Law of the Civil
2Administrative Code of Illinois is amended by changing Section
32505-305 as follows:
 
4    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
5    Sec. 2505-305. Investigators.
6    (a) The Department has the power to appoint investigators
7to conduct all investigations, searches, seizures, arrests,
8and other duties imposed under the provisions of any law
9administered by the Department. Except as provided in
10subsection (c), these investigators have and may exercise all
11the powers of peace officers solely for the purpose of
12enforcing taxing measures administered by the Department.
13    (b) The Director must authorize to each investigator
14employed under this Section and to any other employee of the
15Department exercising the powers of a peace officer a distinct
16badge that, on its face, (i) clearly states that the badge is
17authorized by the Department and (ii) contains a unique
18identifying number. No other badge shall be authorized by the
19Department.
20    (c) The Department may enter into agreements with the
21Illinois Gaming Board providing that investigators appointed
22under this Section shall exercise the peace officer powers set
23forth in paragraph (20.6) of subsection (c) of Section 5 of the
24Illinois Riverboat Gambling Act.

 

 

09600SB0737ham002- 52 -LRB096 06805 ASK 44784 a

1(Source: P.A. 96-37, eff. 7-13-09.)
 
2    Section 90-12. The Illinois State Auditing Act is amended
3by changing Section 3-1 as follows:
 
4    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
5    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
6General has jurisdiction over all State agencies to make post
7audits and investigations authorized by or under this Act or
8the Constitution.
9    The Auditor General has jurisdiction over local government
10agencies and private agencies only:
11        (a) to make such post audits authorized by or under
12    this Act as are necessary and incidental to a post audit of
13    a State agency or of a program administered by a State
14    agency involving public funds of the State, but this
15    jurisdiction does not include any authority to review local
16    governmental agencies in the obligation, receipt,
17    expenditure or use of public funds of the State that are
18    granted without limitation or condition imposed by law,
19    other than the general limitation that such funds be used
20    for public purposes;
21        (b) to make investigations authorized by or under this
22    Act or the Constitution; and
23        (c) to make audits of the records of local government
24    agencies to verify actual costs of state-mandated programs

 

 

09600SB0737ham002- 53 -LRB096 06805 ASK 44784 a

1    when directed to do so by the Legislative Audit Commission
2    at the request of the State Board of Appeals under the
3    State Mandates Act.
4    In addition to the foregoing, the Auditor General may
5conduct an audit of the Metropolitan Pier and Exposition
6Authority, the Regional Transportation Authority, the Suburban
7Bus Division, the Commuter Rail Division and the Chicago
8Transit Authority and any other subsidized carrier when
9authorized by the Legislative Audit Commission. Such audit may
10be a financial, management or program audit, or any combination
11thereof.
12    The audit shall determine whether they are operating in
13accordance with all applicable laws and regulations. Subject to
14the limitations of this Act, the Legislative Audit Commission
15may by resolution specify additional determinations to be
16included in the scope of the audit.
17    In addition to the foregoing, the Auditor General must also
18conduct a financial audit of the Illinois Sports Facilities
19Authority's expenditures of public funds in connection with the
20reconstruction, renovation, remodeling, extension, or
21improvement of all or substantially all of any existing
22"facility", as that term is defined in the Illinois Sports
23Facilities Authority Act.
24    The Auditor General may also conduct an audit, when
25authorized by the Legislative Audit Commission, of any hospital
26which receives 10% or more of its gross revenues from payments

 

 

09600SB0737ham002- 54 -LRB096 06805 ASK 44784 a

1from the State of Illinois, Department of Healthcare and Family
2Services (formerly Department of Public Aid), Medical
3Assistance Program.
4    The Auditor General is authorized to conduct financial and
5compliance audits of the Illinois Distance Learning Foundation
6and the Illinois Conservation Foundation.
7    As soon as practical after the effective date of this
8amendatory Act of 1995, the Auditor General shall conduct a
9compliance and management audit of the City of Chicago and any
10other entity with regard to the operation of Chicago O'Hare
11International Airport, Chicago Midway Airport and Merrill C.
12Meigs Field. The audit shall include, but not be limited to, an
13examination of revenues, expenses, and transfers of funds;
14purchasing and contracting policies and practices; staffing
15levels; and hiring practices and procedures. When completed,
16the audit required by this paragraph shall be distributed in
17accordance with Section 3-14.
18    The Auditor General shall conduct a financial and
19compliance and program audit of distributions from the
20Municipal Economic Development Fund during the immediately
21preceding calendar year pursuant to Section 8-403.1 of the
22Public Utilities Act at no cost to the city, village, or
23incorporated town that received the distributions.
24    The Auditor General must conduct an audit of the Health
25Facilities and Services Review Board pursuant to Section 19.5
26of the Illinois Health Facilities Planning Act.

 

 

09600SB0737ham002- 55 -LRB096 06805 ASK 44784 a

1    The Auditor General must conduct an audit of the Chicago
2Casino Development Authority pursuant to Section 1-60 of the
3Chicago Casino Development Authority Act.
4    The Auditor General of the State of Illinois shall annually
5conduct or cause to be conducted a financial and compliance
6audit of the books and records of any county water commission
7organized pursuant to the Water Commission Act of 1985 and
8shall file a copy of the report of that audit with the Governor
9and the Legislative Audit Commission. The filed audit shall be
10open to the public for inspection. The cost of the audit shall
11be charged to the county water commission in accordance with
12Section 6z-27 of the State Finance Act. The county water
13commission shall make available to the Auditor General its
14books and records and any other documentation, whether in the
15possession of its trustees or other parties, necessary to
16conduct the audit required. These audit requirements apply only
17through July 1, 2007.
18    The Auditor General must conduct audits of the Rend Lake
19Conservancy District as provided in Section 25.5 of the River
20Conservancy Districts Act.
21    The Auditor General must conduct financial audits of the
22Southeastern Illinois Economic Development Authority as
23provided in Section 70 of the Southeastern Illinois Economic
24Development Authority Act.
25    The Auditor General shall conduct a compliance audit in
26accordance with subsections (d) and (f) of Section 30 of the

 

 

09600SB0737ham002- 56 -LRB096 06805 ASK 44784 a

1Innovation Development and Economy Act.
2(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
396-939, eff. 6-24-10.)
 
4    Section 90-15. The State Finance Act is amended by adding
5Sections 5.786, 5.787, 5.788, and 6z-79 and by changing Section
66z-77 as follows:
 
7    (30 ILCS 105/5.786 new)
8    Sec. 5.786. The State and County Fair Assistance Fund.
 
9    (30 ILCS 105/5.787 new)
10    Sec. 5.787. The Depressed Communities Economic Development
11Fund.
 
12    (30 ILCS 105/5.788 new)
13    Sec. 5.788. The Gaming Facilities Fee Revenue Fund.
 
14    (30 ILCS 105/6z-77)
15    Sec. 6z-77. The Capital Projects Fund.
16    (a) The Capital Projects Fund is created as a special fund
17in the State Treasury. The State Comptroller and State
18Treasurer shall transfer from the Capital Projects Fund to the
19General Revenue Fund $61,294,550 on October 1, 2009,
20$122,589,100 on January 1, 2010, and $61,294,550 on April 1,
212010. Beginning on July 1, 2010, and on July 1 and January 1 of

 

 

09600SB0737ham002- 57 -LRB096 06805 ASK 44784 a

1each year thereafter, the State Comptroller and State Treasurer
2shall transfer the sum of $122,589,100 from the Capital
3Projects Fund to the General Revenue Fund.
4    (b) Subject to appropriation, the Capital Projects Fund may
5be used only for capital projects and the payment of debt
6service on bonds issued for capital projects. All interest
7earned on moneys in the Fund shall be deposited into the Fund.
8The Fund shall not be subject to administrative charges or
9chargebacks, such as but not limited to those authorized under
10Section 8h.
11    (c) Annually, the Governor's Office of Management and
12Budget shall determine if revenues deposited into the Fund in
13the fiscal year are expected to exceed the amount needed in the
14fiscal year for capital projects and the payment of debt
15service on bonds issued for capital projects. If any such
16excess amount exists, then on April 1 or as soon thereafter as
17practical, the Governor's Office of Management and Budget shall
18certify such amount, accompanied by a description of the
19process by which the amount was calculated, to the State
20Comptroller and the State Treasurer. Within 15 days after the
21receipt of the certification required by this subsection (c),
22the State Comptroller and the State Treasurer shall transfer
23that amount from the Capital Projects Fund to the Education
24Assistance Fund, except that the amount transferred to the
25Education Assistance Fund pursuant to this subsection (c) shall
26not exceed the estimated amount of revenues that will be

 

 

09600SB0737ham002- 58 -LRB096 06805 ASK 44784 a

1deposited into the Fund pursuant to Sections 12 and 13 of the
2Illinois Gambling Act in the fiscal year.
3(Source: P.A. 96-34, eff. 7-13-09.)
 
4    (30 ILCS 105/6z-79 new)
5    Sec. 6z-79. The Gaming Facilities Fee Revenue Fund.
6    (a) The Gaming Facilities Fee Revenue Fund is created as a
7special fund in the State treasury.
8    (b) Twenty-five percent of revenues in the Fund shall be
9transferred to the Capital Projects Fund for capital projects.
10The remaining 75% of revenues in the Fund shall be used,
11subject to appropriation, by the Comptroller solely for the
12purpose of payment of vouchers that are outstanding for more
13than 60 days. Whenever practical, the Comptroller must
14prioritize voucher payments for expenses related to medical
15assistance under the Illinois Public Aid Code, the Children's
16Health Insurance Program Act, the Covering ALL KIDS Health
17Insurance Act, and the Senior Citizens and Disabled Persons
18Property Tax Relief and Pharmaceutical Assistance Act.
19    (c) The Fund shall consist of fee revenues received
20pursuant to subsections (e-5) and (e-10) of Section 7 and
21subsections (b) and (c) of Section 7.6 of the Illinois Gambling
22Act. All interest earned on moneys in the Fund shall be
23deposited into the Fund.
24    (d) The Fund shall not be subject to administrative charges
25or chargebacks, including, but not limited to, those authorized

 

 

09600SB0737ham002- 59 -LRB096 06805 ASK 44784 a

1under subsection (h) of Section 8 of this Act.
 
2    Section 90-20. The Illinois Income Tax Act is amended by
3changing Section 201 as follows:
 
4    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
5    Sec. 201. Tax Imposed.
6    (a) In general. A tax measured by net income is hereby
7imposed on every individual, corporation, trust and estate for
8each taxable year ending after July 31, 1969 on the privilege
9of earning or receiving income in or as a resident of this
10State. Such tax shall be in addition to all other occupation or
11privilege taxes imposed by this State or by any municipal
12corporation or political subdivision thereof.
13    (b) Rates. The tax imposed by subsection (a) of this
14Section shall be determined as follows, except as adjusted by
15subsection (d-1):
16        (1) In the case of an individual, trust or estate, for
17    taxable years ending prior to July 1, 1989, an amount equal
18    to 2 1/2% of the taxpayer's net income for the taxable
19    year.
20        (2) In the case of an individual, trust or estate, for
21    taxable years beginning prior to July 1, 1989 and ending
22    after June 30, 1989, an amount equal to the sum of (i) 2
23    1/2% of the taxpayer's net income for the period prior to
24    July 1, 1989, as calculated under Section 202.3, and (ii)

 

 

09600SB0737ham002- 60 -LRB096 06805 ASK 44784 a

1    3% of the taxpayer's net income for the period after June
2    30, 1989, as calculated under Section 202.3.
3        (3) In the case of an individual, trust or estate, for
4    taxable years beginning after June 30, 1989, an amount
5    equal to 3% of the taxpayer's net income for the taxable
6    year.
7        (4) (Blank).
8        (5) (Blank).
9        (6) In the case of a corporation, for taxable years
10    ending prior to July 1, 1989, an amount equal to 4% of the
11    taxpayer's net income for the taxable year.
12        (7) In the case of a corporation, for taxable years
13    beginning prior to July 1, 1989 and ending after June 30,
14    1989, an amount equal to the sum of (i) 4% of the
15    taxpayer's net income for the period prior to July 1, 1989,
16    as calculated under Section 202.3, and (ii) 4.8% of the
17    taxpayer's net income for the period after June 30, 1989,
18    as calculated under Section 202.3.
19        (8) In the case of a corporation, for taxable years
20    beginning after June 30, 1989, an amount equal to 4.8% of
21    the taxpayer's net income for the taxable year.
22    (b-5) Surcharge; sale or exchange of assets, properties,
23and intangibles of electronic gaming licensees. For each of
24taxable years 2010 through 2019, a surcharge is imposed on all
25taxpayers on income arising from the sale or exchange of
26capital assets, depreciable business property, real property

 

 

09600SB0737ham002- 61 -LRB096 06805 ASK 44784 a

1used in the trade or business, and Section 197 intangibles (i)
2of an organization licensee under the Illinois Horse Racing Act
3of 1975 and (ii) of an electronic gaming licensee under the
4Illinois Gambling Act. The amount of the surcharge is equal to
5the amount of federal income tax liability for the taxable year
6attributable to those sales and exchanges. The surcharge
7imposed shall not apply if:
8        (1) the electronic gaming license, organization
9    license, or race track property is transferred as a result
10    of any of the following:
11            (A) bankruptcy, a receivership, or a debt
12        adjustment initiated by or against the initial
13        licensee or the substantial owners of the initial
14        licensee;
15            (B) cancellation, revocation, or termination of
16        any such license by the Illinois Gaming Board or the
17        Illinois Racing Board;
18            (C) a determination by the Illinois Gaming Board
19        that transfer of the license is in the best interests
20        of Illinois gaming;
21            (D) the death of an owner of the equity interest in
22        a licensee;
23            (E) the acquisition of a controlling interest in
24        the stock or substantially all of the assets of a
25        publicly traded company;
26            (F) a transfer by a parent company to a wholly

 

 

09600SB0737ham002- 62 -LRB096 06805 ASK 44784 a

1        owned subsidiary; or
2            (G) the transfer or sale to or by one person to
3        another person where both persons were initial owners
4        of the license when the license was issued.
5        (2) the controlling interest in the electronic gaming
6    license, organization license, or race track property is
7    transferred in a transaction to lineal descendants in which
8    no gain or loss is recognized or as a result of a
9    transaction in accordance with Section 351 of the Internal
10    Revenue Code in which no gain or loss is recognized.
11    The transfer of an electronic gaming license, organization
12license, or race track property by a person other than the
13initial licensee to receive the electronic gaming license is
14not subject to a surcharge. The Department shall adopt rules
15necessary to implement and administer this subsection.
16    (c) Personal Property Tax Replacement Income Tax.
17Beginning on July 1, 1979 and thereafter, in addition to such
18income tax, there is also hereby imposed the Personal Property
19Tax Replacement Income Tax measured by net income on every
20corporation (including Subchapter S corporations), partnership
21and trust, for each taxable year ending after June 30, 1979.
22Such taxes are imposed on the privilege of earning or receiving
23income in or as a resident of this State. The Personal Property
24Tax Replacement Income Tax shall be in addition to the income
25tax imposed by subsections (a) and (b) of this Section and in
26addition to all other occupation or privilege taxes imposed by

 

 

09600SB0737ham002- 63 -LRB096 06805 ASK 44784 a

1this State or by any municipal corporation or political
2subdivision thereof.
3    (d) Additional Personal Property Tax Replacement Income
4Tax Rates. The personal property tax replacement income tax
5imposed by this subsection and subsection (c) of this Section
6in the case of a corporation, other than a Subchapter S
7corporation and except as adjusted by subsection (d-1), shall
8be an additional amount equal to 2.85% of such taxpayer's net
9income for the taxable year, except that beginning on January
101, 1981, and thereafter, the rate of 2.85% specified in this
11subsection shall be reduced to 2.5%, and in the case of a
12partnership, trust or a Subchapter S corporation shall be an
13additional amount equal to 1.5% of such taxpayer's net income
14for the taxable year.
15    (d-1) Rate reduction for certain foreign insurers. In the
16case of a foreign insurer, as defined by Section 35A-5 of the
17Illinois Insurance Code, whose state or country of domicile
18imposes on insurers domiciled in Illinois a retaliatory tax
19(excluding any insurer whose premiums from reinsurance assumed
20are 50% or more of its total insurance premiums as determined
21under paragraph (2) of subsection (b) of Section 304, except
22that for purposes of this determination premiums from
23reinsurance do not include premiums from inter-affiliate
24reinsurance arrangements), beginning with taxable years ending
25on or after December 31, 1999, the sum of the rates of tax
26imposed by subsections (b) and (d) shall be reduced (but not

 

 

09600SB0737ham002- 64 -LRB096 06805 ASK 44784 a

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

 

 

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1    the taxable year, as described by subsection (1) of Section
2    409 of the Illinois Insurance Code. This paragraph will in
3    no event increase the rates imposed under subsections (b)
4    and (d).
5        (2) Any reduction in the rates of tax imposed by this
6    subsection shall be applied first against the rates imposed
7    by subsection (b) and only after the tax imposed by
8    subsection (a) net of all credits allowed under this
9    Section other than the credit allowed under subsection (i)
10    has been reduced to zero, against the rates imposed by
11    subsection (d).
12    This subsection (d-1) is exempt from the provisions of
13Section 250.
14    (e) Investment credit. A taxpayer shall be allowed a credit
15against the Personal Property Tax Replacement Income Tax for
16investment in qualified property.
17        (1) A taxpayer shall be allowed a credit equal to .5%
18    of the basis of qualified property placed in service during
19    the taxable year, provided such property is placed in
20    service on or after July 1, 1984. There shall be allowed an
21    additional credit equal to .5% of the basis of qualified
22    property placed in service during the taxable year,
23    provided such property is placed in service on or after
24    July 1, 1986, and the taxpayer's base employment within
25    Illinois has increased by 1% or more over the preceding
26    year as determined by the taxpayer's employment records

 

 

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1    filed with the Illinois Department of Employment Security.
2    Taxpayers who are new to Illinois shall be deemed to have
3    met the 1% growth in base employment for the first year in
4    which they file employment records with the Illinois
5    Department of Employment Security. The provisions added to
6    this Section by Public Act 85-1200 (and restored by Public
7    Act 87-895) shall be construed as declaratory of existing
8    law and not as a new enactment. If, in any year, the
9    increase in base employment within Illinois over the
10    preceding year is less than 1%, the additional credit shall
11    be limited to that percentage times a fraction, the
12    numerator of which is .5% and the denominator of which is
13    1%, but shall not exceed .5%. The investment credit shall
14    not be allowed to the extent that it would reduce a
15    taxpayer's liability in any tax year below zero, nor may
16    any credit for qualified property be allowed for any year
17    other than the year in which the property was placed in
18    service in Illinois. For tax years ending on or after
19    December 31, 1987, and on or before December 31, 1988, the
20    credit shall be allowed for the tax year in which the
21    property is placed in service, or, if the amount of the
22    credit exceeds the tax liability for that year, whether it
23    exceeds the original liability or the liability as later
24    amended, such excess may be carried forward and applied to
25    the tax liability of the 5 taxable years following the
26    excess credit years if the taxpayer (i) makes investments

 

 

09600SB0737ham002- 67 -LRB096 06805 ASK 44784 a

1    which cause the creation of a minimum of 2,000 full-time
2    equivalent jobs in Illinois, (ii) is located in an
3    enterprise zone established pursuant to the Illinois
4    Enterprise Zone Act and (iii) is certified by the
5    Department of Commerce and Community Affairs (now
6    Department of Commerce and Economic Opportunity) as
7    complying with the requirements specified in clause (i) and
8    (ii) by July 1, 1986. The Department of Commerce and
9    Community Affairs (now Department of Commerce and Economic
10    Opportunity) shall notify the Department of Revenue of all
11    such certifications immediately. For tax years ending
12    after December 31, 1988, the credit shall be allowed for
13    the tax year in which the property is placed in service,
14    or, if the amount of the credit exceeds the tax liability
15    for that year, whether it exceeds the original liability or
16    the liability as later amended, such excess may be carried
17    forward and applied to the tax liability of the 5 taxable
18    years following the excess credit years. The credit shall
19    be applied to the earliest year for which there is a
20    liability. If there is credit from more than one tax year
21    that is available to offset a liability, earlier credit
22    shall be applied first.
23        (2) The term "qualified property" means property
24    which:
25            (A) is tangible, whether new or used, including
26        buildings and structural components of buildings and

 

 

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1        signs that are real property, but not including land or
2        improvements to real property that are not a structural
3        component of a building such as landscaping, sewer
4        lines, local access roads, fencing, parking lots, and
5        other appurtenances;
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        (e);
11            (C) is acquired by purchase as defined in Section
12        179(d) of the Internal Revenue Code;
13            (D) is used in Illinois by a taxpayer who is
14        primarily engaged in manufacturing, or in mining coal
15        or fluorite, or in retailing, or was placed in service
16        on or after July 1, 2006 in a River Edge Redevelopment
17        Zone established pursuant to the River Edge
18        Redevelopment Zone Act; and
19            (E) has not previously been used in Illinois in
20        such a manner and by such a person as would qualify for
21        the credit provided by this subsection (e) or
22        subsection (f).
23        (3) For purposes of this subsection (e),
24    "manufacturing" means the material staging and production
25    of tangible personal property by procedures commonly
26    regarded as manufacturing, processing, fabrication, or

 

 

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1    assembling which changes some existing material into new
2    shapes, new qualities, or new combinations. For purposes of
3    this subsection (e) the term "mining" shall have the same
4    meaning as the term "mining" in Section 613(c) of the
5    Internal Revenue Code. For purposes of this subsection (e),
6    the term "retailing" means the sale of tangible personal
7    property for use or consumption and not for resale, or
8    services rendered in conjunction with the sale of tangible
9    personal property for use or consumption and not for
10    resale. For purposes of this subsection (e), "tangible
11    personal property" has the same meaning as when that term
12    is used in the Retailers' Occupation Tax Act, and, for
13    taxable years ending after December 31, 2008, does not
14    include the generation, transmission, or distribution of
15    electricity.
16        (4) The basis of qualified property shall be the basis
17    used to compute the depreciation deduction for federal
18    income tax purposes.
19        (5) If the basis of the property for federal income tax
20    depreciation purposes is increased after it has been placed
21    in service in Illinois by the taxpayer, the amount of such
22    increase shall be deemed property placed in service on the
23    date of such increase in basis.
24        (6) The term "placed in service" shall have the same
25    meaning as under Section 46 of the Internal Revenue Code.
26        (7) If during any taxable year, any property ceases to

 

 

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1    be qualified property in the hands of the taxpayer within
2    48 months after being placed in service, or the situs of
3    any qualified property is moved outside Illinois within 48
4    months after being placed in service, the Personal Property
5    Tax Replacement Income Tax for such taxable year shall be
6    increased. Such increase shall be determined by (i)
7    recomputing the investment credit which would have been
8    allowed for the year in which credit for such property was
9    originally allowed by eliminating such property from such
10    computation and, (ii) subtracting such recomputed credit
11    from the amount of credit previously allowed. For the
12    purposes of this paragraph (7), a reduction of the basis of
13    qualified property resulting from a redetermination of the
14    purchase price shall be deemed a disposition of qualified
15    property to the extent of such reduction.
16        (8) Unless the investment credit is extended by law,
17    the basis of qualified property shall not include costs
18    incurred after December 31, 2013, except for costs incurred
19    pursuant to a binding contract entered into on or before
20    December 31, 2013.
21        (9) Each taxable year ending before December 31, 2000,
22    a partnership may elect to pass through to its partners the
23    credits to which the partnership is entitled under this
24    subsection (e) for the taxable year. A partner may use the
25    credit allocated to him or her under this paragraph only
26    against the tax imposed in subsections (c) and (d) of this

 

 

09600SB0737ham002- 71 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 72 -LRB096 06805 ASK 44784 a

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

 

 

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

 

 

09600SB0737ham002- 74 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 75 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 76 -LRB096 06805 ASK 44784 a

1    $500 per eligible employee hired to work in the zone during
2    the taxable year.
3        (2) To qualify for the credit:
4            (A) the taxpayer must hire 5 or more eligible
5        employees to work in an enterprise zone, River Edge
6        Redevelopment Zone, or federally designated Foreign
7        Trade Zone or Sub-Zone during the taxable year;
8            (B) the taxpayer's total employment within the
9        enterprise zone, River Edge Redevelopment Zone, or
10        federally designated Foreign Trade Zone or Sub-Zone
11        must increase by 5 or more full-time employees beyond
12        the total employed in that zone at the end of the
13        previous tax year for which a jobs tax credit under
14        this Section was taken, or beyond the total employed by
15        the taxpayer as of December 31, 1985, whichever is
16        later; and
17            (C) the eligible employees must be employed 180
18        consecutive days in order to be deemed hired for
19        purposes of this subsection.
20        (3) An "eligible employee" means an employee who is:
21            (A) Certified by the Department of Commerce and
22        Economic Opportunity as "eligible for services"
23        pursuant to regulations promulgated in accordance with
24        Title II of the Job Training Partnership Act, Training
25        Services for the Disadvantaged or Title III of the Job
26        Training Partnership Act, Employment and Training

 

 

09600SB0737ham002- 77 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 78 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 79 -LRB096 06805 ASK 44784 a

1    credit applicable to such investments shall be taken in the
2    taxable year in which such investments have been completed.
3    The credit for additional investments beyond the minimum
4    investment by a designated high impact business authorized
5    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
6    Enterprise Zone Act shall be available only in the taxable
7    year in which the property is placed in service and shall
8    not be allowed to the extent that it would reduce a
9    taxpayer's liability for the tax imposed by subsections (a)
10    and (b) of this Section to below zero. For tax years ending
11    on or after December 31, 1987, the credit shall be allowed
12    for the tax year in which the property is placed in
13    service, or, if the amount of the credit exceeds the tax
14    liability for that year, whether it exceeds the original
15    liability or the liability as later amended, such excess
16    may be carried forward and applied to the tax liability of
17    the 5 taxable years following the excess credit year. The
18    credit shall be applied to the earliest year for which
19    there is a liability. If there is credit from more than one
20    tax year that is available to offset a liability, the
21    credit accruing first in time shall be applied first.
22        Changes made in this subdivision (h)(1) by Public Act
23    88-670 restore changes made by Public Act 85-1182 and
24    reflect existing law.
25        (2) The term qualified property means property which:
26            (A) is tangible, whether new or used, including

 

 

09600SB0737ham002- 80 -LRB096 06805 ASK 44784 a

1        buildings and structural components of buildings;
2            (B) is depreciable pursuant to Section 167 of the
3        Internal Revenue Code, except that "3-year property"
4        as defined in Section 168(c)(2)(A) of that Code is not
5        eligible for the credit provided by this subsection
6        (h);
7            (C) is acquired by purchase as defined in Section
8        179(d) of the Internal Revenue Code; and
9            (D) is not eligible for the Enterprise Zone
10        Investment Credit provided by subsection (f) of this
11        Section.
12        (3) The basis of qualified property shall be the basis
13    used to compute the depreciation deduction for federal
14    income tax purposes.
15        (4) If the basis of the property for federal income tax
16    depreciation purposes is increased after it has been placed
17    in service in a federally designated Foreign Trade Zone or
18    Sub-Zone located in Illinois by the taxpayer, the amount of
19    such increase shall be deemed property placed in service on
20    the date of such increase in basis.
21        (5) The term "placed in service" shall have the same
22    meaning as under Section 46 of the Internal Revenue Code.
23        (6) If during any taxable year ending on or before
24    December 31, 1996, any property ceases to be qualified
25    property in the hands of the taxpayer within 48 months
26    after being placed in service, or the situs of any

 

 

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1    qualified property is moved outside Illinois within 48
2    months after being placed in service, the tax imposed under
3    subsections (a) and (b) of this Section for such taxable
4    year shall be increased. Such increase shall be determined
5    by (i) recomputing the investment credit which would have
6    been allowed for the year in which credit for such property
7    was originally allowed by eliminating such property from
8    such computation, and (ii) subtracting such recomputed
9    credit from the amount of credit previously allowed. For
10    the purposes of this paragraph (6), a reduction of the
11    basis of qualified property resulting from a
12    redetermination of the purchase price shall be deemed a
13    disposition of qualified property to the extent of such
14    reduction.
15        (7) Beginning with tax years ending after December 31,
16    1996, if a taxpayer qualifies for the credit under this
17    subsection (h) and thereby is granted a tax abatement and
18    the taxpayer relocates its entire facility in violation of
19    the explicit terms and length of the contract under Section
20    18-183 of the Property Tax Code, the tax imposed under
21    subsections (a) and (b) of this Section shall be increased
22    for the taxable year in which the taxpayer relocated its
23    facility by an amount equal to the amount of credit
24    received by the taxpayer under this subsection (h).
25    (i) Credit for Personal Property Tax Replacement Income
26Tax. For tax years ending prior to December 31, 2003, a credit

 

 

09600SB0737ham002- 82 -LRB096 06805 ASK 44784 a

1shall be allowed against the tax imposed by subsections (a) and
2(b) of this Section for the tax imposed by subsections (c) and
3(d) of this Section. This credit shall be computed by
4multiplying the tax imposed by subsections (c) and (d) of this
5Section by a fraction, the numerator of which is base income
6allocable to Illinois and the denominator of which is Illinois
7base income, and further multiplying the product by the tax
8rate imposed by subsections (a) and (b) of this Section.
9    Any credit earned on or after December 31, 1986 under this
10subsection which is unused in the year the credit is computed
11because it exceeds the tax liability imposed by subsections (a)
12and (b) for that year (whether it exceeds the original
13liability or the liability as later amended) may be carried
14forward and applied to the tax liability imposed by subsections
15(a) and (b) of the 5 taxable years following the excess credit
16year, provided that no credit may be carried forward to any
17year ending on or after December 31, 2003. This credit shall be
18applied first to the earliest year for which there is a
19liability. If there is a credit under this subsection from more
20than one tax year that is available to offset a liability the
21earliest credit arising under this subsection shall be applied
22first.
23    If, during any taxable year ending on or after December 31,
241986, the tax imposed by subsections (c) and (d) of this
25Section for which a taxpayer has claimed a credit under this
26subsection (i) is reduced, the amount of credit for such tax

 

 

09600SB0737ham002- 83 -LRB096 06805 ASK 44784 a

1shall also be reduced. Such reduction shall be determined by
2recomputing the credit to take into account the reduced tax
3imposed by subsections (c) and (d). If any portion of the
4reduced amount of credit has been carried to a different
5taxable year, an amended return shall be filed for such taxable
6year to reduce the amount of credit claimed.
7    (j) Training expense credit. Beginning with tax years
8ending on or after December 31, 1986 and prior to December 31,
92003, a taxpayer shall be allowed a credit against the tax
10imposed by subsections (a) and (b) under this Section for all
11amounts paid or accrued, on behalf of all persons employed by
12the taxpayer in Illinois or Illinois residents employed outside
13of Illinois by a taxpayer, for educational or vocational
14training in semi-technical or technical fields or semi-skilled
15or skilled fields, which were deducted from gross income in the
16computation of taxable income. The credit against the tax
17imposed by subsections (a) and (b) shall be 1.6% of such
18training expenses. For partners, shareholders of subchapter S
19corporations, and owners of limited liability companies, if the
20liability company is treated as a partnership for purposes of
21federal and State income taxation, there shall be allowed a
22credit under this subsection (j) to be determined in accordance
23with the determination of income and distributive share of
24income under Sections 702 and 704 and subchapter S of the
25Internal Revenue Code.
26    Any credit allowed under this subsection which is unused in

 

 

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1the year the credit is earned may be carried forward to each of
2the 5 taxable years following the year for which the credit is
3first computed until it is used. This credit shall be applied
4first to the earliest year for which there is a liability. If
5there is a credit under this subsection from more than one tax
6year that is available to offset a liability the earliest
7credit arising under this subsection shall be applied first. No
8carryforward credit may be claimed in any tax year ending on or
9after December 31, 2003.
10    (k) Research and development credit.
11    For tax years ending after July 1, 1990 and prior to
12December 31, 2003, and beginning again for tax years ending on
13or after December 31, 2004, and ending prior to January 1,
142011, a taxpayer shall be allowed a credit against the tax
15imposed by subsections (a) and (b) of this Section for
16increasing research activities in this State. The credit
17allowed against the tax imposed by subsections (a) and (b)
18shall be equal to 6 1/2% of the qualifying expenditures for
19increasing research activities in this State. For partners,
20shareholders of subchapter S corporations, and owners of
21limited liability companies, if the liability company is
22treated as a partnership for purposes of federal and State
23income taxation, there shall be allowed a credit under this
24subsection to be determined in accordance with the
25determination of income and distributive share of income under
26Sections 702 and 704 and subchapter S of the Internal Revenue

 

 

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1Code.
2    For purposes of this subsection, "qualifying expenditures"
3means the qualifying expenditures as defined for the federal
4credit for increasing research activities which would be
5allowable under Section 41 of the Internal Revenue Code and
6which are conducted in this State, "qualifying expenditures for
7increasing research activities in this State" means the excess
8of qualifying expenditures for the taxable year in which
9incurred over qualifying expenditures for the base period,
10"qualifying expenditures for the base period" means the average
11of the qualifying expenditures for each year in the base
12period, and "base period" means the 3 taxable years immediately
13preceding the taxable year for which the determination is being
14made.
15    Any credit in excess of the tax liability for the taxable
16year may be carried forward. A taxpayer may elect to have the
17unused credit shown on its final completed return carried over
18as a credit against the tax liability for the following 5
19taxable years or until it has been fully used, whichever occurs
20first; provided that no credit earned in a tax year ending
21prior to December 31, 2003 may be carried forward to any year
22ending on or after December 31, 2003, and no credit may be
23carried forward to any taxable year ending on or after January
241, 2011.
25    If an unused credit is carried forward to a given year from
262 or more earlier years, that credit arising in the earliest

 

 

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1year will be applied first against the tax liability for the
2given year. If a tax liability for the given year still
3remains, the credit from the next earliest year will then be
4applied, and so on, until all credits have been used or no tax
5liability for the given year remains. Any remaining unused
6credit or credits then will be carried forward to the next
7following year in which a tax liability is incurred, except
8that no credit can be carried forward to a year which is more
9than 5 years after the year in which the expense for which the
10credit is given was incurred.
11    No inference shall be drawn from this amendatory Act of the
1291st General Assembly in construing this Section for taxable
13years beginning before January 1, 1999.
14    (l) Environmental Remediation Tax Credit.
15        (i) For tax years ending after December 31, 1997 and on
16    or before December 31, 2001, a taxpayer shall be allowed a
17    credit against the tax imposed by subsections (a) and (b)
18    of this Section for certain amounts paid for unreimbursed
19    eligible remediation costs, as specified in this
20    subsection. For purposes of this Section, "unreimbursed
21    eligible remediation costs" means costs approved by the
22    Illinois Environmental Protection Agency ("Agency") under
23    Section 58.14 of the Environmental Protection Act that were
24    paid in performing environmental remediation at a site for
25    which a No Further Remediation Letter was issued by the
26    Agency and recorded under Section 58.10 of the

 

 

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

 

 

09600SB0737ham002- 88 -LRB096 06805 ASK 44784 a

1    Department of Commerce and Community Affairs (now
2    Department of Commerce and Economic Opportunity). The
3    total credit allowed shall not exceed $40,000 per year with
4    a maximum total of $150,000 per site. For partners and
5    shareholders of subchapter S corporations, there shall be
6    allowed a credit under this subsection to be determined in
7    accordance with the determination of income and
8    distributive share of income under Sections 702 and 704 and
9    subchapter S of the Internal Revenue Code.
10        (ii) A credit allowed under this subsection that is
11    unused in the year the credit is earned may be carried
12    forward to each of the 5 taxable years following the year
13    for which the credit is first earned until it is used. The
14    term "unused credit" does not include any amounts of
15    unreimbursed eligible remediation costs in excess of the
16    maximum credit per site authorized under paragraph (i).
17    This credit shall be applied first to the earliest year for
18    which there is a liability. If there is a credit under this
19    subsection from more than one tax year that is available to
20    offset a liability, the earliest credit arising under this
21    subsection shall be applied first. A credit allowed under
22    this subsection may be sold to a buyer as part of a sale of
23    all or part of the remediation site for which the credit
24    was granted. The purchaser of a remediation site and the
25    tax credit shall succeed to the unused credit and remaining
26    carry-forward period of the seller. To perfect the

 

 

09600SB0737ham002- 89 -LRB096 06805 ASK 44784 a

1    transfer, the assignor shall record the transfer in the
2    chain of title for the site and provide written notice to
3    the Director of the Illinois Department of Revenue of the
4    assignor's intent to sell the remediation site and the
5    amount of the tax credit to be transferred as a portion of
6    the sale. In no event may a credit be transferred to any
7    taxpayer if the taxpayer or a related party would not be
8    eligible under the provisions of subsection (i).
9        (iii) For purposes of this Section, the term "site"
10    shall have the same meaning as under Section 58.2 of the
11    Environmental Protection Act.
12    (m) Education expense credit. Beginning with tax years
13ending after December 31, 1999, a taxpayer who is the custodian
14of one or more qualifying pupils shall be allowed a credit
15against the tax imposed by subsections (a) and (b) of this
16Section for qualified education expenses incurred on behalf of
17the qualifying pupils. The credit shall be equal to 25% of
18qualified education expenses, but in no event may the total
19credit under this subsection claimed by a family that is the
20custodian of qualifying pupils exceed $500. In no event shall a
21credit under this subsection reduce the taxpayer's liability
22under this Act to less than zero. This subsection is exempt
23from the provisions of Section 250 of this Act.
24    For purposes of this subsection:
25    "Qualifying pupils" means individuals who (i) are
26residents of the State of Illinois, (ii) are under the age of

 

 

09600SB0737ham002- 90 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 91 -LRB096 06805 ASK 44784 a

1    this Section, "unreimbursed eligible remediation costs"
2    means costs approved by the Illinois Environmental
3    Protection Agency ("Agency") under Section 58.14a of the
4    Environmental Protection Act that were paid in performing
5    environmental remediation at a site within a River Edge
6    Redevelopment Zone for which a No Further Remediation
7    Letter was issued by the Agency and recorded under Section
8    58.10 of the Environmental Protection Act. The credit must
9    be claimed for the taxable year in which Agency approval of
10    the eligible remediation costs is granted. The credit is
11    not available to any taxpayer if the taxpayer or any
12    related party caused or contributed to, in any material
13    respect, a release of regulated substances on, in, or under
14    the site that was identified and addressed by the remedial
15    action pursuant to the Site Remediation Program of the
16    Environmental Protection Act. Determinations as to credit
17    availability for purposes of this Section shall be made
18    consistent with rules adopted by the Pollution Control
19    Board pursuant to the Illinois Administrative Procedure
20    Act for the administration and enforcement of Section 58.9
21    of the Environmental Protection Act. For purposes of this
22    Section, "taxpayer" includes a person whose tax attributes
23    the taxpayer has succeeded to under Section 381 of the
24    Internal Revenue Code and "related party" includes the
25    persons disallowed a deduction for losses by paragraphs
26    (b), (c), and (f)(1) of Section 267 of the Internal Revenue

 

 

09600SB0737ham002- 92 -LRB096 06805 ASK 44784 a

1    Code by virtue of being a related taxpayer, as well as any
2    of its partners. The credit allowed against the tax imposed
3    by subsections (a) and (b) shall be equal to 25% of the
4    unreimbursed eligible remediation costs in excess of
5    $100,000 per site.
6        (ii) A credit allowed under this subsection that is
7    unused in the year the credit is earned may be carried
8    forward to each of the 5 taxable years following the year
9    for which the credit is first earned until it is used. This
10    credit shall be applied first to the earliest year for
11    which there is a liability. If there is a credit under this
12    subsection from more than one tax year that is available to
13    offset a liability, the earliest credit arising under this
14    subsection shall be applied first. A credit allowed under
15    this subsection may be sold to a buyer as part of a sale of
16    all or part of the remediation site for which the credit
17    was granted. The purchaser of a remediation site and the
18    tax credit shall succeed to the unused credit and remaining
19    carry-forward period of the seller. To perfect the
20    transfer, the assignor shall record the transfer in the
21    chain of title for the site and provide written notice to
22    the Director of the Illinois Department of Revenue of the
23    assignor's intent to sell the remediation site and the
24    amount of the tax credit to be transferred as a portion of
25    the sale. In no event may a credit be transferred to any
26    taxpayer if the taxpayer or a related party would not be

 

 

09600SB0737ham002- 93 -LRB096 06805 ASK 44784 a

1    eligible under the provisions of subsection (i).
2        (iii) For purposes of this Section, the term "site"
3    shall have the same meaning as under Section 58.2 of the
4    Environmental Protection Act.
5        (iv) This subsection is exempt from the provisions of
6    Section 250.
7(Source: P.A. 95-454, eff. 8-27-07; 96-115, eff. 7-31-09;
896-116, eff. 7-31-09; 96-937, eff. 6-23-10; 96-1000, eff.
97-2-10.)
 
10    Section 90-23. The Property Tax Code is amended by adding
11Section 15-144 as follows:
 
12    (35 ILCS 200/15-144 new)
13    Sec. 15-144. Chicago Casino Development Authority. All
14property owned by the Chicago Casino Development Authority is
15exempt. Any property owned by the Chicago Casino Development
16Authority and leased to an entity that is not exempt shall
17remain exempt so long as it is used for a public purpose.
 
18    Section 90-25. The Joliet Regional Port District Act is
19amended by changing Section 5.1 as follows:
 
20    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
21    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
22any other provision of this Act, the District may not regulate

 

 

09600SB0737ham002- 94 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 95 -LRB096 06805 ASK 44784 a

1Director with an application fee of $300. The approval for the
2limited purpose branch must be renewed concurrently with the
3renewal of the licensee's license along with a renewal fee of
4$300 for the limited purpose branch.
5    (c) The books, accounts, records, and files of the limited
6purpose branch's transactions shall be maintained at the
7licensee's licensed location. The licensee shall notify the
8Director of the licensed location at which the books, accounts,
9records, and files shall be maintained.
10    (d) The licensee shall prominently display at the limited
11purpose branch the address and telephone number of the
12licensee's licensed location.
13    (e) No other business shall be conducted at the site of the
14limited purpose branch unless authorized by the Director.
15    (f) The Director shall make and enforce reasonable rules
16for the conduct of a limited purpose branch.
17    (g) A limited purpose branch may not be located within
181,000 feet of a facility operated by an inter-track wagering
19licensee or an organization licensee subject to the Illinois
20Horse Racing Act of 1975, on a riverboat or in a casino subject
21to the Illinois Riverboat Gambling Act, or within 1,000 feet of
22the location at which the riverboat docks or within 1,000 feet
23of a casino.
24(Source: P.A. 90-437, eff. 1-1-98.)
 
25    Section 90-35. The Illinois Horse Racing Act of 1975 is

 

 

09600SB0737ham002- 96 -LRB096 06805 ASK 44784 a

1amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 15.1,
218, 19, 20, 24, 26, 27, 28, 28.1, 30, 30.5, 31, 31.1, 32.1, 36,
3and 40 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
434.3, and 56 as follows:
 
5    (230 ILCS 5/1.2)
6    Sec. 1.2. Legislative intent. This Act is intended to
7benefit the people of the State of Illinois by encouraging the
8breeding and production of race horses, assisting economic
9development and promoting Illinois tourism. The General
10Assembly finds and declares it to be the public policy of the
11State of Illinois to:
12    (a) support and enhance Illinois' horse racing industry,
13which is a significant component within the agribusiness
14industry;
15    (b) ensure that Illinois' horse racing industry remains
16competitive with neighboring states;
17    (c) stimulate growth within Illinois' horse racing
18industry, thereby encouraging new investment and development
19to produce additional tax revenues and to create additional
20jobs;
21    (d) promote the further growth of tourism;
22    (e) encourage the breeding of thoroughbred and
23standardbred horses in this State; and
24    (f) ensure that public confidence and trust in the
25credibility and integrity of racing operations and the

 

 

09600SB0737ham002- 97 -LRB096 06805 ASK 44784 a

1regulatory process is maintained.
2(Source: P.A. 91-40, eff. 6-25-99.)
 
3    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
4    Sec. 3.11. "Organization Licensee" means any person
5receiving an organization license from the Board to conduct a
6race meeting or meetings. With respect only to electronic
7gaming, "organization licensee" includes the authorization for
8an electronic gaming license under subsection (a) of Section 56
9of this Act.
10(Source: P.A. 79-1185.)
 
11    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
12    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
13system of wagering" means a form of wagering on the outcome of
14horse races in which wagers are made in various denominations
15on a horse or horses and all wagers for each race are pooled
16and held by a licensee for distribution in a manner approved by
17the Board. "Pari-mutuel system of wagering" shall not include
18wagering on historic races. Wagers may be placed via any method
19or at any location authorized under this Act.
20(Source: P.A. 96-762, eff. 8-25-09.)
 
21    (230 ILCS 5/3.31 new)
22    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
23receipts" means the gross receipts less winnings paid to

 

 

09600SB0737ham002- 98 -LRB096 06805 ASK 44784 a

1wagerers.
 
2    (230 ILCS 5/3.32 new)
3    Sec. 3.32. Gross receipts. "Gross receipts" means the total
4amount of money exchanged for the purchase of chips, tokens, or
5electronic cards by riverboat or casino patrons or electronic
6gaming patrons.
 
7    (230 ILCS 5/3.33 new)
8    Sec. 3.33. Electronic gaming. "Electronic gaming" means
9slot machine gambling, video game of chance gambling, or
10gambling with electronic gambling games as defined in the
11Illinois Gambling Act or defined by the Illinois Gaming Board
12that is conducted at a race track pursuant to an electronic
13gaming license.
 
14    (230 ILCS 5/3.35 new)
15    Sec. 3.35. Electronic gaming license. "Electronic gaming
16license" means a license issued by the Illinois Gaming Board
17under Section 7.6 of the Illinois Gambling Act authorizing
18electronic gaming at an electronic gaming facility.
 
19    (230 ILCS 5/3.36 new)
20    Sec. 3.36. Electronic gaming facility. "Electronic gaming
21facility" means that portion of an organization licensee's race
22track facility at which electronic gaming is conducted.
 

 

 

09600SB0737ham002- 99 -LRB096 06805 ASK 44784 a

1    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
2    Sec. 6. Restrictions on Board members.
3    (a) No person shall be appointed a member of the Board or
4continue to be a member of the Board if the person or any
5member of their immediate family is a member of the Board of
6Directors, employee, or financially interested in any of the
7following: (i) any licensee or other person who has applied for
8racing dates to the Board, or the operations thereof including,
9but not limited to, concessions, data processing, track
10maintenance, track security, and pari-mutuel operations,
11located, scheduled or doing business within the State of
12Illinois, (ii) any race horse competing at a meeting under the
13Board's jurisdiction, or (iii) any licensee under the Illinois
14Gambling Act. No person shall be appointed a member of the
15Board or continue to be a member of the Board who is (or any
16member of whose family is) a member of the Board of Directors
17of, or who is a person financially interested in, any licensee
18or other person who has applied for racing dates to the Board,
19or the operations thereof including, but not limited to,
20concessions, data processing, track maintenance, track
21security and pari-mutuel operations, located, scheduled or
22doing business within the State of Illinois, or in any race
23horse competing at a meeting under the Board's jurisdiction. No
24Board member shall hold any other public office for which he
25shall receive compensation other than necessary travel or other

 

 

09600SB0737ham002- 100 -LRB096 06805 ASK 44784 a

1incidental expenses.
2    (b) No person shall be a member of the Board who is not of
3good moral character or who has been convicted of, or is under
4indictment for, a felony under the laws of Illinois or any
5other state, or the United States.
6    (c) No member of the Board or employee shall engage in any
7political activity. For the purposes of this Section,
8"political" means any activity in support of or in connection
9with any campaign for State or local elective office or any
10political organization, but does not include activities (i)
11relating to the support or opposition of any executive,
12legislative, or administrative action (as those terms are
13defined in Section 2 of the Lobbyist Registration Act), (ii)
14relating to collective bargaining, or (iii) that are otherwise
15in furtherance of the person's official State duties or
16governmental and public service functions.
17    (d) Board members and employees may not engage in
18communications or any activity that may cause or have the
19appearance of causing a conflict of interest. A conflict of
20interest exists if a situation influences or creates the
21appearance that it may influence judgment or performance of
22regulatory duties and responsibilities. This prohibition shall
23extend to any act identified by Board action that, in the
24judgment of the Board, could represent the potential for or the
25appearance of a conflict of interest.
26    (e) Board members and employees may not accept any gift,

 

 

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1gratuity, service, compensation, travel, lodging, or thing of
2value, with the exception of unsolicited items of an incidental
3nature, from any person, corporation, or entity doing business
4with the Board.
5    (f) A Board member or employee shall not use or attempt to
6use his or her official position to secure, or attempt to
7secure, any privilege, advantage, favor, or influence for
8himself or herself or others. No Board member or employee,
9within a period of one year immediately preceding nomination by
10the Governor or employment, shall have been employed or
11received compensation or fees for services from a person or
12entity, or its parent or affiliate, that has engaged in
13business with the Board, a licensee or a licensee under the
14Illinois Gambling Act. In addition, all Board members and
15employees are subject to the restrictions set forth in Section
165-45 of the State Officials and Employees Ethics Act.
17(Source: P.A. 89-16, eff. 5-30-95.)
 
18    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
19    Sec. 9. The Board shall have all powers necessary and
20proper to fully and effectively execute the provisions of this
21Act, including, but not limited to, the following:
22    (a) The Board is vested with jurisdiction and supervision
23over all race meetings in this State, over all licensees doing
24business in this State, over all occupation licensees, and over
25all persons on the facilities of any licensee. Such

 

 

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1jurisdiction shall include the power to issue licenses to the
2Illinois Department of Agriculture authorizing the pari-mutuel
3system of wagering on harness and Quarter Horse races held (1)
4at the Illinois State Fair in Sangamon County, and (2) at the
5DuQuoin State Fair in Perry County. The jurisdiction of the
6Board shall also include the power to issue licenses to county
7fairs which are eligible to receive funds pursuant to the
8Agricultural Fair Act, as now or hereafter amended, or their
9agents, authorizing the pari-mutuel system of wagering on horse
10races conducted at the county fairs receiving such licenses.
11Such licenses shall be governed by subsection (n) of this
12Section.
13    Upon application, the Board shall issue a license to the
14Illinois Department of Agriculture to conduct harness and
15Quarter Horse races at the Illinois State Fair and at the
16DuQuoin State Fairgrounds during the scheduled dates of each
17fair. The Board shall not require and the Department of
18Agriculture shall be exempt from the requirements of Sections
1915.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
20(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
21and 25. The Board and the Department of Agriculture may extend
22any or all of these exemptions to any contractor or agent
23engaged by the Department of Agriculture to conduct its race
24meetings when the Board determines that this would best serve
25the public interest and the interest of horse racing.
26    Notwithstanding any provision of law to the contrary, it

 

 

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

 

 

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

 

 

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

 

 

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1seasonal employees (excluding admission ticket sellers and
2mutuel clerks). All of those named and appointed as provided in
3this subsection shall serve during the pleasure of the Board;
4their compensation shall be determined by the Board and be paid
5in the same manner as other employees of the Board under this
6Act.
7    (i) The Board shall require that there shall be 3 stewards
8at each horse race meeting, at least 2 of whom shall be named
9and appointed by the Board. Stewards appointed or approved by
10the Board, while performing duties required by this Act or by
11the Board, shall be entitled to the same rights and immunities
12as granted to Board members and Board employees in Section 10
13of this Act.
14    (j) The Board may discharge any Board employee who fails or
15refuses for any reason to comply with the rules and regulations
16of the Board, or who, in the opinion of the Board, is guilty of
17fraud, dishonesty or who is proven to be incompetent. The Board
18shall have no right or power to determine who shall be
19officers, directors or employees of any licensee, or their
20salaries except the Board may, by rule, require that all or any
21officials or employees in charge of or whose duties relate to
22the actual running of races be approved by the Board.
23    (k) The Board is vested with the power to appoint delegates
24to execute any of the powers granted to it under this Section
25for the purpose of administering this Act and any rules or
26regulations promulgated in accordance with this Act.

 

 

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1    (l) The Board is vested with the power to impose civil
2penalties of up to $5,000 against an individual and up to
3$10,000 against a licensee for each violation of any provision
4of this Act, any rules adopted by the Board, any order of the
5Board or any other action which, in the Board's discretion, is
6a detriment or impediment to horse racing or wagering. All such
7civil penalties shall be deposited into the Horse Racing Fund.
8    (m) The Board is vested with the power to prescribe a form
9to be used by licensees as an application for employment for
10employees of each licensee.
11    (n) The Board shall have the power to issue a license to
12any county fair, or its agent, authorizing the conduct of the
13pari-mutuel system of wagering. The Board is vested with the
14full power to promulgate reasonable rules, regulations and
15conditions under which all horse race meetings licensed
16pursuant to this subsection shall be held and conducted,
17including rules, regulations and conditions for the conduct of
18the pari-mutuel system of wagering. The rules, regulations and
19conditions shall provide for the prevention of practices
20detrimental to the public interest and for the best interests
21of horse racing, and shall prescribe penalties for violations
22thereof. Any authority granted the Board under this Act shall
23extend to its jurisdiction and supervision over county fairs,
24or their agents, licensed pursuant to this subsection. However,
25the Board may waive any provision of this Act or its rules or
26regulations which would otherwise apply to such county fairs or

 

 

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1their agents.
2    (o) Whenever the Board is authorized or required by law to
3consider some aspect of criminal history record information for
4the purpose of carrying out its statutory powers and
5responsibilities, then, upon request and payment of fees in
6conformance with the requirements of Section 2605-400 of the
7Department of State Police Law (20 ILCS 2605/2605-400), the
8Department of State Police is authorized to furnish, pursuant
9to positive identification, such information contained in
10State files as is necessary to fulfill the request.
11    (p) To insure the convenience, comfort, and wagering
12accessibility of race track patrons, to provide for the
13maximization of State revenue, and to generate increases in
14purse allotments to the horsemen, the Board shall require any
15licensee to staff the pari-mutuel department with adequate
16personnel.
17(Source: P.A. 91-239, eff. 1-1-00.)
 
18    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
19    Sec. 15. (a) The Board shall, in its discretion, issue
20occupation licenses to horse owners, trainers, harness
21drivers, jockeys, agents, apprentices, grooms, stable foremen,
22exercise persons, veterinarians, valets, blacksmiths,
23concessionaires and others designated by the Board whose work,
24in whole or in part, is conducted upon facilities within the
25State. Such occupation licenses will be obtained prior to the

 

 

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1persons engaging in their vocation upon such facilities. The
2Board shall not license pari-mutuel clerks, parking
3attendants, security guards and employees of concessionaires.
4No occupation license shall be required of any person who works
5at facilities within this State as a pari-mutuel clerk, parking
6attendant, security guard or as an employee of a
7concessionaire. Concessionaires of the Illinois State Fair and
8DuQuoin State Fair and employees of the Illinois Department of
9Agriculture shall not be required to obtain an occupation
10license by the Board.
11    (b) Each application for an occupation license shall be on
12forms prescribed by the Board. Such license, when issued, shall
13be for the period ending December 31 of each year, except that
14the Board in its discretion may grant 3-year licenses. The
15application shall be accompanied by a fee of not more than $25
16per year or, in the case of 3-year occupation license
17applications, a fee of not more than $60. Each applicant shall
18set forth in the application his full name and address, and if
19he had been issued prior occupation licenses or has been
20licensed in any other state under any other name, such name,
21his age, whether or not a permit or license issued to him in
22any other state has been suspended or revoked and if so whether
23such suspension or revocation is in effect at the time of the
24application, and such other information as the Board may
25require. Fees for registration of stable names shall not exceed
26$50.00.

 

 

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1    (c) The Board may in its discretion refuse an occupation
2license to any person:
3        (1) who has been convicted of a crime;
4        (2) who is unqualified to perform the duties required
5    of such applicant;
6        (3) who fails to disclose or states falsely any
7    information called for in the application;
8        (4) who has been found guilty of a violation of this
9    Act or of the rules and regulations of the Board; or
10        (5) whose license or permit has been suspended, revoked
11    or denied for just cause in any other state.
12    (d) The Board may suspend or revoke any occupation license:
13        (1) for violation of any of the provisions of this Act;
14    or
15        (2) for violation of any of the rules or regulations of
16    the Board; or
17        (3) for any cause which, if known to the Board, would
18    have justified the Board in refusing to issue such
19    occupation license; or
20        (4) for any other just cause.
21    (e)   Each applicant shall submit his or her fingerprints
22to the Department of State Police in the form and manner
23prescribed by the Department of State Police. These
24fingerprints shall be checked against the fingerprint records
25now and hereafter filed in the Department of State Police and
26Federal Bureau of Investigation criminal history records

 

 

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

 

 

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

 

 

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1$700,000 or more. The additional fees required to be paid under
2this Section by this amendatory Act of 1982 shall be remitted
3by the organization licensee to the Illinois Racing Board with
4each day's graduated privilege tax or pari-mutuel tax and
5breakage as provided under Section 27.
6    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
7Municipal Code," approved May 29, 1961, as now or hereafter
8amended, shall not apply to any license under this Act.
9(Source: P.A. 91-40, eff. 6-25-99.)
 
10    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
11    Sec. 19. (a) No organization license may be granted to
12conduct a horse race meeting:
13        (1) except as provided in subsection (c) of Section 21
14    of this Act, to any person at any place within 35 miles of
15    any other place licensed by the Board to hold a race
16    meeting on the same date during the same hours, the mileage
17    measurement used in this subsection (a) shall be certified
18    to the Board by the Bureau of Systems and Services in the
19    Illinois Department of Transportation as the most commonly
20    used public way of vehicular travel;
21        (2) to any person in default in the payment of any
22    obligation or debt due the State under this Act, provided
23    no applicant shall be deemed in default in the payment of
24    any obligation or debt due to the State under this Act as
25    long as there is pending a hearing of any kind relevant to

 

 

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

 

 

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

 

 

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

 

 

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1association.
2    (e) With such application there shall be delivered to the
3Board a certified check or bank draft payable to the order of
4the Board for an amount equal to $1,000. All applications for
5the issuance of an organization license shall be filed with the
6Board before August 1 of the year prior to the year for which
7application is made and shall be acted upon by the Board at a
8meeting to be held on such date as shall be fixed by the Board
9during the last 15 days of September of such prior year. At
10such meeting, the Board shall announce the award of the racing
11meets, live racing schedule, and designation of host track to
12the applicants and its approval or disapproval of each
13application. No announcement shall be considered binding until
14a formal order is executed by the Board, which shall be
15executed no later than October 15 of that prior year. Absent
16the agreement of the affected organization licensees, the Board
17shall not grant overlapping race meetings to 2 or more tracks
18that are within 100 miles of each other to conduct the
19thoroughbred racing.
20    (e-1) In awarding standardbred racing dates for calendar
21year 2012 and thereafter, the Board shall award at least 310
22racing days, and each organization licensees shall average at
23least 12 races for each racing day awarded. The Board shall
24have the discretion to allocate those racing days among
25organization licensees requesting standardbred race dates.
26Once awarded by the Board, organization licensees awarded

 

 

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1standardbred dates shall run at least 3,500 races in total
2during that calendar year.
3    (e-2) In awarding racing dates for calendar year 2012 and
4thereafter, the Board shall award racing dates and the
5organization licensees shall run at least 2,500 thoroughbred
6races at Cook County race tracks and 700 thoroughbred races at
7a race track in Madison County each year. In awarding racing
8dates under this subsection (e-2), the Board shall have the
9discretion to allocate those racing dates among organization
10licensees.
11    (e-3) The Board shall ensure that each organization
12licensee shall individually run a sufficient number of races
13per year to qualify for an electronic gaming license under
14Section 7.6 of the Illinois Gambling Act.
15    (e-4) Notwithstanding the provisions of Section 7.6 of the
16Illinois Gambling Act, for each calendar year for which an
17electronic gaming licensee requests a number of live racing
18days under its organization license that is less than the
19number of days of live racing awarded in 2009 for its race
20track facility, the electronic gaming licensee may not conduct
21electronic gaming for the calendar year of such requested
22racing days. The number of days of live racing may be adjusted,
23on a year-by-year basis, because of weather or unsafe track
24conditions due to acts of God or an agreement between the
25organization licensee and the association representing the
26largest number of owners, trainers, or standardbred drivers who

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
2    Sec. 24. (a) No license shall be issued to or held by an
3organization licensee unless all of its officers, directors,
4and holders of ownership interests of at least 5% are first
5approved by the Board. The Board shall not give approval of an
6organization license application to any person who has been
7convicted of or is under an indictment for a crime of moral
8turpitude or has violated any provision of the racing law of
9this State or any rules of the Board.
10    (b) An organization licensee must notify the Board within
1110 days of any change in the holders of a direct or indirect
12interest in the ownership of the organization licensee. The
13Board may, after hearing, revoke the organization license of
14any person who registers on its books or knowingly permits a
15direct or indirect interest in the ownership of that person
16without notifying the Board of the name of the holder in
17interest within this period.
18    (c) In addition to the provisions of subsection (a) of this
19Section, no person shall be granted an organization license if
20any public official of the State or member of his or her family
21holds any ownership or financial interest, directly or
22indirectly, in the person.
23    (d) No person which has been granted an organization
24license to hold a race meeting shall give to any public
25official or member of his family, directly or indirectly, for
26or without consideration, any interest in the person. The Board

 

 

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1shall, after hearing, revoke the organization license granted
2to a person which has violated this subsection.
3    (e) (Blank).
4    (f) No organization licensee or concessionaire or officer,
5director or holder or controller of 5% or more legal or
6beneficial interest in any organization licensee or concession
7shall make any sort of gift or contribution that is prohibited
8under Article 10 of the State Officials and Employees Ethics
9Act of any kind or pay or give any money or other thing of value
10to any person who is a public official, or a candidate or
11nominee for public office if that payment or gift is prohibited
12under Article 10 of the State Officials and Employees Ethics
13Act.
14(Source: P.A. 89-16, eff. 5-30-95.)
 
15    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
16    Sec. 26. Wagering.
17    (a) Any licensee may conduct and supervise the pari-mutuel
18system of wagering, as defined in Section 3.12 of this Act, on
19horse races conducted by an Illinois organization licensee or
20conducted at a racetrack located in another state or country
21and televised in Illinois in accordance with subsection (g) of
22Section 26 of this Act. Subject to the prior consent of the
23Board, licensees may supplement any pari-mutuel pool in order
24to guarantee a minimum distribution. Such pari-mutuel method of
25wagering shall not, under any circumstances if conducted under

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1Board. The Board may adopt rules necessary to regulate advance
2deposit wagering through the use of emergency rulemaking in
3accordance with Section 5-45 of the Illinois Administrative
4Procedure Act. The General Assembly finds that the adoption of
5rules to regulate advance deposit wagering is deemed an
6emergency and necessary for the public interest, safety, and
7welfare. An advance deposit wagering licensee may retain all
8moneys as agreed to by contract with an organization licensee.
9Any moneys retained by the organization licensee from advance
10deposit wagering, not including moneys retained by the advance
11deposit wagering licensee, shall be paid 50% to the
12organization licensee's purse account and 50% to the
13organization licensee. If more than one breed races at the same
14race track facility, then the 50% of the moneys to be paid to
15an organization licensee's purse account shall be allocated
16among all organization licensees' purse accounts operating at
17that race track facility proportionately based on the actual
18number of host days that the Board grants to that breed at that
19race track facility in the current calendar year. To the extent
20any fees from advance deposit wagering conducted in Illinois
21for wagers in Illinois or other states have been placed in
22escrow or otherwise withheld from wagers pending a
23determination of the legality of advance deposit wagering, no
24action shall be brought to declare such wagers or the
25disbursement of any fees previously escrowed illegal.
26        (1) Between the hours of 6:30 a.m. and 6:30 p.m. an

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09600SB0737ham002- 137 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 138 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 139 -LRB096 06805 ASK 44784 a

1        racing dates as were conducted in calendar year 2000,
2        80% shall be deposited into its standardbred purse
3        account; and
4            (B) Twenty percent shall be deposited into the
5        Illinois Colt Stakes Purse Distribution Fund. Moneys
6        deposited into the Illinois Colt Stakes Purse
7        Distribution Fund pursuant to this subparagraph (B)
8        shall be paid to Illinois conceived and foaled
9        thoroughbred breeders' programs and to thoroughbred
10        purses for races conducted at any county fairgrounds
11        for Illinois conceived and foaled horses at the
12        discretion of the Department of Agriculture, with the
13        advice and assistance of the Illinois Thoroughbred
14        Breeders Fund Advisory Board. The moneys deposited
15        into the Illinois Colt Stakes Purse Distribution Fund
16        pursuant to this subparagraph (B) shall be deposited
17        within 2 weeks after the day they were generated, shall
18        be in addition to and not in lieu of any other moneys
19        paid to thoroughbred purses under this Act, and shall
20        not be commingled with other moneys deposited into that
21        Fund.
22        (7.3) If no live standardbred racing is conducted at a
23    racetrack located in Madison County in calendar year 2000
24    or 2001, an organization licensee who is licensed to
25    conduct horse racing at that racetrack shall, before
26    January 1, 2002, pay all moneys derived from simulcast

 

 

09600SB0737ham002- 140 -LRB096 06805 ASK 44784 a

1    wagering and inter-track wagering in calendar years 2000
2    and 2001 and paid into the licensee's standardbred purse
3    account as follows:
4            (A) Eighty percent to that licensee's thoroughbred
5        purse account to be used for thoroughbred purses; and
6            (B) Twenty percent to the Illinois Colt Stakes
7        Purse Distribution Fund.
8        Failure to make the payment to the Illinois Colt Stakes
9    Purse Distribution Fund before January 1, 2002 shall result
10    in the immediate revocation of the licensee's organization
11    license, inter-track wagering license, and inter-track
12    wagering location license.
13        Moneys paid into the Illinois Colt Stakes Purse
14    Distribution Fund pursuant to this paragraph (7.3) shall be
15    paid to purses for standardbred races for Illinois
16    conceived and foaled horses conducted at any county
17    fairgrounds. Moneys paid into the Illinois Colt Stakes
18    Purse Distribution Fund pursuant to this paragraph (7.3)
19    shall be used as determined by the Department of
20    Agriculture, with the advice and assistance of the Illinois
21    Standardbred Breeders Fund Advisory Board, shall be in
22    addition to and not in lieu of any other moneys paid to
23    standardbred purses under this Act, and shall not be
24    commingled with any other moneys paid into that Fund.
25        (7.4) If live standardbred racing is conducted at a
26    racetrack located in Madison County at any time in calendar

 

 

09600SB0737ham002- 141 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 142 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 143 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 144 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 145 -LRB096 06805 ASK 44784 a

1    of 30 or more days of racing were conducted annually may be
2    issued an inter-track wagering license; (ii) at a track
3    located in a county that is bounded by the Mississippi
4    River, which has a population of less than 150,000
5    according to the 1990 decennial census, and an average of
6    at least 60 days of racing per year between 1985 and 1993
7    may be issued an inter-track wagering license; or (iii) at
8    a track located in Madison County that conducted at least
9    100 days of live racing during the immediately preceding
10    calendar year may be issued an inter-track wagering
11    license, unless a lesser schedule of live racing is the
12    result of (A) weather, unsafe track conditions, or other
13    acts of God; (B) an agreement between the organization
14    licensee and the associations representing the largest
15    number of owners, trainers, jockeys, or standardbred
16    drivers who race horses at that organization licensee's
17    racing meeting; or (C) a finding by the Board of
18    extraordinary circumstances and that it was in the best
19    interest of the public and the sport to conduct fewer than
20    100 days of live racing. Any such person having operating
21    control of the racing facility may also receive up to 6
22    inter-track wagering location licenses. In no event shall
23    more than 6 inter-track wagering locations be established
24    for each eligible race track, except that an eligible race
25    track located in a county that has a population of more
26    than 230,000 and that is bounded by the Mississippi River

 

 

09600SB0737ham002- 146 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 147 -LRB096 06805 ASK 44784 a

1    Illinois in the sum of $50,000, executed by the applicant
2    and a surety company or companies authorized to do business
3    in this State, and conditioned upon (i) the payment by the
4    licensee of all taxes due under Section 27 or 27.1 and any
5    other monies due and payable under this Act, and (ii)
6    distribution by the licensee, upon presentation of the
7    winning ticket or tickets, of all sums payable to the
8    patrons of pari-mutuel pools.
9        (5) Each license to conduct inter-track wagering and
10    simulcast wagering shall specify the person to whom it is
11    issued, the dates on which such wagering is permitted, and
12    the track or location where the wagering is to be
13    conducted.
14        (6) All wagering under such license is subject to this
15    Act and to the rules and regulations from time to time
16    prescribed by the Board, and every such license issued by
17    the Board shall contain a recital to that effect.
18        (7) An inter-track wagering licensee or inter-track
19    wagering location licensee may accept wagers at the track
20    or location where it is licensed, or as otherwise provided
21    under this Act.
22        (8) Inter-track wagering or simulcast wagering shall
23    not be conducted at any track less than 4 5 miles from a
24    track at which a racing meeting is in progress.
25        (8.1) Inter-track wagering location licensees who
26    derive their licenses from a particular organization

 

 

09600SB0737ham002- 148 -LRB096 06805 ASK 44784 a

1    licensee shall conduct inter-track wagering and simulcast
2    wagering only at locations which are either within 90 miles
3    of that race track where the particular organization
4    licensee is licensed to conduct racing, or within 135 miles
5    of that race track where the particular organization
6    licensee is licensed to conduct racing in the case of race
7    tracks in counties of less than 400,000 that were operating
8    on or before June 1, 1986. However, inter-track wagering
9    and simulcast wagering shall not be conducted by those
10    licensees at any location within 5 miles of any race track
11    at which a horse race meeting has been licensed in the
12    current year, unless the person having operating control of
13    such race track has given its written consent to such
14    inter-track wagering location licensees, which consent
15    must be filed with the Board at or prior to the time
16    application is made.
17        (8.2) Inter-track wagering or simulcast wagering shall
18    not be conducted by an inter-track wagering location
19    licensee at any location within 500 feet of an existing
20    church, an or existing elementary or secondary public
21    school, or an existing elementary or secondary private
22    school registered with or recognized by the State Board of
23    Education school, nor within 500 feet of the residences of
24    more than 50 registered voters without receiving written
25    permission from a majority of the registered voters at such
26    residences. Such written permission statements shall be

 

 

09600SB0737ham002- 149 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 150 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 151 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 152 -LRB096 06805 ASK 44784 a

1    inter-track wagering licensee on inter-track wagering
2    shall be allocated with 50% to be split between the 2
3    participating licensees and 50% to purses, except that an
4    intertrack wagering licensee that derives its license from
5    a track located in a county with a population in excess of
6    230,000 and that borders the Mississippi River shall not
7    divide any remaining retention with the Illinois
8    organization licensee that provides the race or races, and
9    an intertrack wagering licensee that accepts wagers on
10    races conducted by an organization licensee that conducts a
11    race meet in a county with a population in excess of
12    230,000 and that borders the Mississippi River shall not
13    divide any remaining retention with that organization
14    licensee.
15        (B) From the sums permitted to be retained pursuant to
16    this Act each inter-track wagering location licensee shall
17    pay (i) the privilege or pari-mutuel tax to the State; (ii)
18    4.75% of the pari-mutuel handle on intertrack wagering at
19    such location on races as purses, except that an intertrack
20    wagering location licensee that derives its license from a
21    track located in a county with a population in excess of
22    230,000 and that borders the Mississippi River shall retain
23    all purse moneys for its own purse account consistent with
24    distribution set forth in this subsection (h), and
25    intertrack wagering location licensees that accept wagers
26    on races conducted by an organization licensee located in a

 

 

09600SB0737ham002- 153 -LRB096 06805 ASK 44784 a

1    county with a population in excess of 230,000 and that
2    borders the Mississippi River shall distribute all purse
3    moneys to purses at the operating host track; (iii) until
4    January 1, 2000, except as provided in subsection (g) of
5    Section 27 of this Act, 1% of the pari-mutuel handle
6    wagered on inter-track wagering and simulcast wagering at
7    each inter-track wagering location licensee facility to
8    the Horse Racing Tax Allocation Fund, provided that, to the
9    extent the total amount collected and distributed to the
10    Horse Racing Tax Allocation Fund under this subsection (h)
11    during any calendar year exceeds the amount collected and
12    distributed to the Horse Racing Tax Allocation Fund during
13    calendar year 1994, that excess amount shall be
14    redistributed (I) to all inter-track wagering location
15    licensees, based on each licensee's pro-rata share of the
16    total handle from inter-track wagering and simulcast
17    wagering for all inter-track wagering location licensees
18    during the calendar year in which this provision is
19    applicable; then (II) the amounts redistributed to each
20    inter-track wagering location licensee as described in
21    subpart (I) shall be further redistributed as provided in
22    subparagraph (B) of paragraph (5) of subsection (g) of this
23    Section 26 provided first, that the shares of those
24    amounts, which are to be redistributed to the host track or
25    to purses at the host track under subparagraph (B) of
26    paragraph (5) of subsection (g) of this Section 26 shall be

 

 

09600SB0737ham002- 154 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 155 -LRB096 06805 ASK 44784 a

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

 

 

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1    the first 12 months the licensee is in operation shall be
2    5.75% of the pari-mutuel wagered at the location, purses
3    for the second 12 months the licensee is in operation shall
4    be 6.25%, and purses thereafter shall be 6.75%. For
5    additional intertrack location licensees authorized under
6    this amendatory Act of 1995, the licensee shall be allowed
7    to retain to satisfy all costs and expenses: 7.75% of the
8    pari-mutuel handle wagered at the location during its first
9    12 months of operation, 7.25% during its second 12 months
10    of operation, and 6.75% thereafter.
11        (C) There is hereby created the Horse Racing Tax
12    Allocation Fund which shall remain in existence until
13    December 31, 1999. Moneys remaining in the Fund after
14    December 31, 1999 shall be paid into the General Revenue
15    Fund. Until January 1, 2000, all monies paid into the Horse
16    Racing Tax Allocation Fund pursuant to this paragraph (11)
17    by inter-track wagering location licensees located in park
18    districts of 500,000 population or less, or in a
19    municipality that is not included within any park district
20    but is included within a conservation district and is the
21    county seat of a county that (i) is contiguous to the state
22    of Indiana and (ii) has a 1990 population of 88,257
23    according to the United States Bureau of the Census, and
24    operating on May 1, 1994 shall be allocated by
25    appropriation as follows:
26            Two-sevenths to the Department of Agriculture.

 

 

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

 

 

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1        not been recommended by January 1 of any even-numbered
2        year, the Governor shall appoint a committee member to
3        fill that position. Committee members shall receive no
4        compensation for their services as members but shall be
5        reimbursed for all actual and necessary expenses and
6        disbursements incurred in the performance of their
7        official duties. The remaining 50% of this
8        two-sevenths shall be distributed to county fairs for
9        premiums and rehabilitation as set forth in the
10        Agricultural Fair Act;
11            Four-sevenths to park districts or municipalities
12        that do not have a park district of 500,000 population
13        or less for museum purposes (if an inter-track wagering
14        location licensee is located in such a park district)
15        or to conservation districts for museum purposes (if an
16        inter-track wagering location licensee is located in a
17        municipality that is not included within any park
18        district but is included within a conservation
19        district and is the county seat of a county that (i) is
20        contiguous to the state of Indiana and (ii) has a 1990
21        population of 88,257 according to the United States
22        Bureau of the Census, except that if the conservation
23        district does not maintain a museum, the monies shall
24        be allocated equally between the county and the
25        municipality in which the inter-track wagering
26        location licensee is located for general purposes) or

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09600SB0737ham002- 165 -LRB096 06805 ASK 44784 a

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

 

 

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1    that a licensee conducts inter-track pari-mutuel wagering
2    on races from the Illinois State Fair or DuQuoin State Fair
3    which are in addition to the licensee's previously approved
4    racing program, those races shall be considered a separate
5    racing day for the purpose of determining the daily handle
6    and computing the privilege or pari-mutuel tax on that
7    daily handle as provided in Sections 27 and 27.1. Such
8    agreements shall be approved by the Board before such
9    wagering may be conducted. In determining whether to grant
10    approval, the Board shall give due consideration to the
11    best interests of the public and of horse racing. The
12    provisions of paragraphs (1), (8), (8.1), and (8.2) of
13    subsection (h) of this Section which are not specified in
14    this paragraph (13) shall not apply to licensed race
15    meetings conducted by the Department of Agriculture at the
16    Illinois State Fair in Sangamon County or the DuQuoin State
17    Fair in Perry County, or to any wagering conducted on those
18    race meetings.
19    (i) Notwithstanding the other provisions of this Act, the
20conduct of wagering at wagering facilities is authorized on all
21days, except as limited by subsection (b) of Section 19 of this
22Act.
23(Source: P.A. 96-762, eff. 8-25-09.)
 
24    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
25    Sec. 27. (a) In addition to the organization license fee

 

 

09600SB0737ham002- 167 -LRB096 06805 ASK 44784 a

1provided by this Act, until January 1, 2000, a graduated
2privilege tax is hereby imposed for conducting the pari-mutuel
3system of wagering permitted under this Act. Until January 1,
42000, except as provided in subsection (g) of Section 27 of
5this Act, all of the breakage of each racing day held by any
6licensee in the State shall be paid to the State. Until January
71, 2000, such daily graduated privilege tax shall be paid by
8the licensee from the amount permitted to be retained under
9this Act. Until January 1, 2000, each day's graduated privilege
10tax, breakage, and Horse Racing Tax Allocation funds shall be
11remitted to the Department of Revenue within 48 hours after the
12close of the racing day upon which it is assessed or within
13such other time as the Board prescribes. The privilege tax
14hereby imposed, until January 1, 2000, shall be a flat tax at
15the rate of 2% of the daily pari-mutuel handle except as
16provided in Section 27.1.
17    In addition, every organization licensee, except as
18provided in Section 27.1 of this Act, which conducts multiple
19wagering shall pay, until January 1, 2000, as a privilege tax
20on multiple wagers an amount equal to 1.25% of all moneys
21wagered each day on such multiple wagers, plus an additional
22amount equal to 3.5% of the amount wagered each day on any
23other multiple wager which involves a single betting interest
24on 3 or more horses. The licensee shall remit the amount of
25such taxes to the Department of Revenue within 48 hours after
26the close of the racing day on which it is assessed or within

 

 

09600SB0737ham002- 168 -LRB096 06805 ASK 44784 a

1such other time as the Board prescribes.
2    This subsection (a) shall be inoperative and of no force
3and effect on and after January 1, 2000.
4    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
5at the rate of 1.5% of the daily pari-mutuel handle is imposed
6at all pari-mutuel wagering facilities and on advance deposit
7wagering from a location other than a wagering facility, except
8as otherwise provided for in this subsection (a-5). In addition
9to the pari-mutuel tax imposed on advance deposit wagering
10pursuant to this subsection (a-5), an additional pari-mutuel
11tax at the rate of 0.25% shall be imposed on advance deposit
12wagering, the amount of which shall not exceed $250,000 in each
13calendar year. The additional 0.25% pari-mutuel tax imposed on
14advance deposit wagering by this amendatory Act of the 96th
15General Assembly shall be deposited into the Quarter Horse
16Purse Fund, which shall be created as a non-appropriated trust
17fund administered by the Board for grants to thoroughbred
18organization licensees for payment of purses for quarter horse
19races conducted by the organization licensee. Thoroughbred
20organization licensees may petition the Board to conduct
21quarter horse racing and receive purse grants from the Quarter
22Horse Purse Fund. The Board shall have complete discretion in
23distributing the Quarter Horse Purse Fund to the petitioning
24organization licensees. Beginning on the effective date of this
25amendatory Act of the 96th General Assembly and until moneys
26deposited pursuant to Section 54 are distributed and received,

 

 

09600SB0737ham002- 169 -LRB096 06805 ASK 44784 a

1a pari-mutuel tax at the rate of 0.75% of the daily pari-mutuel
2handle is imposed at a pari-mutuel facility whose license is
3derived from a track located in a county that borders the
4Mississippi River and conducted live racing in the previous
5year. After moneys deposited pursuant to Section 54 are
6distributed and received, a pari-mutuel tax at the rate of 1.5%
7of the daily pari-mutuel handle is imposed at a pari-mutuel
8facility whose license is derived from a track located in a
9county that borders the Mississippi River and conducted live
10racing in the previous year. The pari-mutuel tax imposed by
11this subsection (a-5) shall be remitted to the Department of
12Revenue within 48 hours after the close of the racing day upon
13which it is assessed or within such other time as the Board
14prescribes.
15    (a-10) Beginning on the date when an organization licensee
16begins conducting electronic gaming pursuant to an electronic
17gaming license, the following pari-mutuel tax is imposed upon
18an organization licensee on Illinois races at the licensee's
19race track:
20        1.5% of the pari-mutuel handle at or below the average
21    daily pari-mutuel handle for 2010.
22        2% of the pari-mutuel handle above the average daily
23    pari-mutuel handle for 2010 up to 125% of the average daily
24    pari-mutuel handle for 2010.
25        2.5% of the pari-mutuel handle 125% or more above the
26    average daily pari-mutuel handle for 2010 up to 150% of the

 

 

09600SB0737ham002- 170 -LRB096 06805 ASK 44784 a

1    average daily pari-mutuel handle for 2010.
2        3% of the pari-mutuel handle 150% or more above the
3    average daily pari-mutuel handle for 2010 up to 175% of the
4    average daily pari-mutuel handle for 2010.
5        3.5% of the pari-mutuel handle 175% or more above the
6    average daily pari-mutuel handle for 2010.
7    The pari-mutuel tax imposed by this subsection (a-10) shall
8be remitted to the Board within 48 hours after the close of the
9racing day upon which it is assessed or within such other time
10as the Board prescribes.
11    (b) On or before December 31, 1999, in the event that any
12organization licensee conducts 2 separate programs of races on
13any day, each such program shall be considered a separate
14racing day for purposes of determining the daily handle and
15computing the privilege tax on such daily handle as provided in
16subsection (a) of this Section.
17    (c) Licensees shall at all times keep accurate books and
18records of all monies wagered on each day of a race meeting and
19of the taxes paid to the Department of Revenue under the
20provisions of this Section. The Board or its duly authorized
21representative or representatives shall at all reasonable
22times have access to such records for the purpose of examining
23and checking the same and ascertaining whether the proper
24amount of taxes is being paid as provided. The Board shall
25require verified reports and a statement of the total of all
26monies wagered daily at each wagering facility upon which the

 

 

09600SB0737ham002- 171 -LRB096 06805 ASK 44784 a

1taxes are assessed and may prescribe forms upon which such
2reports and statement shall be made.
3    (d) Any licensee failing or refusing to pay the amount of
4any tax due under this Section shall be guilty of a business
5offense and upon conviction shall be fined not more than $5,000
6in addition to the amount found due as tax under this Section.
7Each day's violation shall constitute a separate offense. All
8fines paid into Court by a licensee hereunder shall be
9transmitted and paid over by the Clerk of the Court to the
10Board.
11    (e) No other license fee, privilege tax, excise tax, or
12racing fee, except as provided in this Act, shall be assessed
13or collected from any such licensee by the State.
14    (f) No other license fee, privilege tax, excise tax or
15racing fee shall be assessed or collected from any such
16licensee by units of local government except as provided in
17paragraph 10.1 of subsection (h) and subsection (f) of Section
1826 of this Act. However, any municipality that has a Board
19licensed horse race meeting at a race track wholly within its
20corporate boundaries or a township that has a Board licensed
21horse race meeting at a race track wholly within the
22unincorporated area of the township may charge a local
23amusement tax not to exceed 10 per admission to such horse
24race meeting by the enactment of an ordinance. However, any
25municipality or county that has a Board licensed inter-track
26wagering location facility wholly within its corporate

 

 

09600SB0737ham002- 172 -LRB096 06805 ASK 44784 a

1boundaries may each impose an admission fee not to exceed $1.00
2per admission to such inter-track wagering location facility,
3so that a total of not more than $2.00 per admission may be
4imposed. Except as provided in subparagraph (g) of Section 27
5of this Act, the inter-track wagering location licensee shall
6collect any and all such fees and within 48 hours remit the
7fees to the Board, which shall, pursuant to rule, cause the
8fees to be distributed to the county or municipality.
9    (g) Notwithstanding any provision in this Act to the
10contrary, if in any calendar year the total taxes and fees from
11wagering on live racing and from inter-track wagering required
12to be collected from licensees and distributed under this Act
13to all State and local governmental authorities exceeds the
14amount of such taxes and fees distributed to each State and
15local governmental authority to which each State and local
16governmental authority was entitled under this Act for calendar
17year 1994, then the first $11 million of that excess amount
18shall be allocated at the earliest possible date for
19distribution as purse money for the succeeding calendar year.
20Upon reaching the 1994 level, and until the excess amount of
21taxes and fees exceeds $11 million, the Board shall direct all
22licensees to cease paying the subject taxes and fees and the
23Board shall direct all licensees to allocate any such excess
24amount for purses as follows:
25        (i) the excess amount shall be initially divided
26    between thoroughbred and standardbred purses based on the

 

 

09600SB0737ham002- 173 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 174 -LRB096 06805 ASK 44784 a

1(Source: P.A. 96-762, eff. 8-25-09; 96-1287, eff. 7-26-10.)
 
2    (230 ILCS 5/28)  (from Ch. 8, par. 37-28)
3    Sec. 28. Except as provided in subsection (g) of Section 27
4of this Act, moneys collected shall be distributed according to
5the provisions of this Section 28.
6    (a) Thirty per cent of the total of all monies received by
7the State as privilege taxes shall be paid into the
8Metropolitan Exposition Auditorium and Office Building Fund in
9the State Treasury.
10    (b) In addition, 4.5% of the total of all monies received
11by the State as privilege taxes shall be paid into the State
12treasury into a special Fund to be known as the Metropolitan
13Exposition, Auditorium, and Office Building Fund.
14    (c) Fifty per cent of the total of all monies received by
15the State as privilege taxes under the provisions of this Act
16shall be paid into the Agricultural Premium Fund.
17    (d) Seven per cent of the total of all monies received by
18the State as privilege taxes shall be paid into the Fair and
19Exposition Fund in the State treasury; provided, however, that
20when all bonds issued prior to July 1, 1984 by the Metropolitan
21Fair and Exposition Authority shall have been paid or payment
22shall have been provided for upon a refunding of those bonds,
23thereafter 1/12 of $1,665,662 of such monies shall be paid each
24month into the Build Illinois Fund, and the remainder into the
25Fair and Exposition Fund. All excess monies shall be allocated

 

 

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1to the Department of Agriculture for distribution to county
2fairs for premiums and rehabilitation as set forth in the
3Agricultural Fair Act.
4    (e) The monies provided for in Section 30 shall be paid
5into the Illinois Thoroughbred Breeders Fund.
6    (f) The monies provided for in Section 31 shall be paid
7into the Illinois Standardbred Breeders Fund.
8    (g) Until January 1, 2000, that part representing 1/2 of
9the total breakage in Thoroughbred, Harness, Appaloosa,
10Arabian, and Quarter Horse racing in the State shall be paid
11into the Illinois Race Track Improvement Fund as established in
12Section 32.
13    (h) All other monies received by the Board under this Act
14shall be paid into the Horse Racing Fund General Revenue Fund
15of the State.
16    (i) The salaries of the Board members, secretary, stewards,
17directors of mutuels, veterinarians, representatives,
18accountants, clerks, stenographers, inspectors and other
19employees of the Board, and all expenses of the Board incident
20to the administration of this Act, including, but not limited
21to, all expenses and salaries incident to the taking of saliva
22and urine samples in accordance with the rules and regulations
23of the Board shall be paid out of the Agricultural Premium
24Fund.
25    (j) The Agricultural Premium Fund shall also be used:
26        (1) for the expenses of operating the Illinois State

 

 

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

 

 

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

 

 

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1    the City of Chicago for conducting the Chicagofest;
2        (16) for the State Comptroller for grants and operating
3    expenses authorized by the Illinois Global Partnership
4    Act.
5    (k) To the extent that monies paid by the Board to the
6Agricultural Premium Fund are in the opinion of the Governor in
7excess of the amount necessary for the purposes herein stated,
8the Governor shall notify the Comptroller and the State
9Treasurer of such fact, who, upon receipt of such notification,
10shall transfer such excess monies from the Agricultural Premium
11Fund to the General Revenue Fund.
12(Source: P.A. 94-91, Sections 55-135 and 90-10, eff. 7-1-05.)
 
13    (230 ILCS 5/28.1)
14    Sec. 28.1. Payments.
15    (a) Beginning on January 1, 2000, moneys collected by the
16Department of Revenue and the Racing Board pursuant to Section
1726 or Section 27 of this Act shall be deposited into the Horse
18Racing Fund, which is hereby created as a special fund in the
19State Treasury.
20    (b) Appropriations, as approved by the General Assembly,
21may be made from the Horse Racing Fund to the Board to pay the
22salaries of the Board members, secretary, stewards, directors
23of mutuels, veterinarians, representatives, accountants,
24clerks, stenographers, inspectors and other employees of the
25Board, and all expenses of the Board incident to the

 

 

09600SB0737ham002- 179 -LRB096 06805 ASK 44784 a

1administration of this Act, including, but not limited to, all
2expenses and salaries incident to the taking of saliva and
3urine samples in accordance with the rules and regulations of
4the Board.
5    (c) Beginning on January 1, 2000, the Board shall transfer
6the remainder of the funds generated pursuant to Sections 26
7and 27 from the Horse Racing Fund into the General Revenue
8Fund.
9    In the event that in any fiscal year, the amount of total
10funds in the Horse Racing Fund is insufficient to meet the
11annual operating expenses of the Board, as appropriated by the
12General Assembly for that fiscal year, the Board shall invoice
13the organization licensees for the amount of the deficit. The
14amount of the invoice shall be allocated in a proportionate
15amount of pari-mutuel wagering handled by the organization
16licensee in the year preceding assessment and divided by the
17total pari-mutuel wagering handled by all Illinois
18organization licensees. The payments shall be made 50% from the
19organization licensee's account and 50% from the organization
20licensee's purse account.
21    (d) Beginning January 1, 2000, payments to all programs in
22existence on the effective date of this amendatory Act of 1999
23that are identified in Sections 26(c), 26(f), 26(h)(11)(C), and
2428, subsections (a), (b), (c), (d), (e), (f), (g), and (h) of
25Section 30, and subsections (a), (b), (c), (d), (e), (f), (g),
26and (h) of Section 31 shall be made from the General Revenue

 

 

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1Fund at the funding levels determined by amounts paid under
2this Act in calendar year 1998. Beginning on the effective date
3of this amendatory Act of the 93rd General Assembly, payments
4to the Peoria Park District shall be made from the General
5Revenue Fund at the funding level determined by amounts paid to
6that park district for museum purposes under this Act in
7calendar year 1994.
8    If an inter-track wagering location licensee's facility
9changes its location, then the payments associated with that
10facility under this subsection (d) for museum purposes shall be
11paid to the park district in the area where the facility
12relocates, and the payments shall be used for museum purposes.
13If the facility does not relocate to a park district, then the
14payments shall be paid to the taxing district that is
15responsible for park or museum expenditures.
16    (e) Beginning July 1, 2006, the payment authorized under
17subsection (d) to museums and aquariums located in park
18districts of over 500,000 population shall be paid to museums,
19aquariums, and zoos in amounts determined by Museums in the
20Park, an association of museums, aquariums, and zoos located on
21Chicago Park District property.
22    (f) Beginning July 1, 2007, the Children's Discovery Museum
23in Normal, Illinois shall receive payments from the General
24Revenue Fund at the funding level determined by the amounts
25paid to the Miller Park Zoo in Bloomington, Illinois under this
26Section in calendar year 2006.

 

 

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1(Source: P.A. 95-222, eff. 8-16-07; 96-562, eff. 8-18-09.)
 
2    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
3    Sec. 30. (a) The General Assembly declares that it is the
4policy of this State to encourage the breeding of thoroughbred
5horses in this State and the ownership of such horses by
6residents of this State in order to provide for: sufficient
7numbers of high quality thoroughbred horses to participate in
8thoroughbred racing meetings in this State, and to establish
9and preserve the agricultural and commercial benefits of such
10breeding and racing industries to the State of Illinois. It is
11the intent of the General Assembly to further this policy by
12the provisions of this Act.
13    (b) Each organization licensee conducting a thoroughbred
14racing meeting pursuant to this Act shall provide at least two
15races each day limited to Illinois conceived and foaled horses
16or Illinois foaled horses or both. A minimum of 6 races shall
17be conducted each week limited to Illinois conceived and foaled
18or Illinois foaled horses or both. No horses shall be permitted
19to start in such races unless duly registered under the rules
20of the Department of Agriculture.
21    (c) Conditions of races under subsection (b) shall be
22commensurate with past performance, quality, and class of
23Illinois conceived and foaled and Illinois foaled horses
24available. If, however, sufficient competition cannot be had
25among horses of that class on any day, the races may, with

 

 

09600SB0737ham002- 182 -LRB096 06805 ASK 44784 a

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

 

 

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

 

 

09600SB0737ham002- 184 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 185 -LRB096 06805 ASK 44784 a

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

 

 

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1        (4) To provide $75,000 annually for purses to be
2    distributed to county fairs that provide for the running of
3    races during each county fair exclusively for the
4    thoroughbreds conceived and foaled in Illinois. The
5    conditions of the races shall be developed by the county
6    fair association and reviewed by the Department with the
7    advice and assistance of the Illinois Thoroughbred
8    Breeders Fund Advisory Board. There shall be no wagering of
9    any kind on the running of Illinois conceived and foaled
10    races at county fairs.
11        (4.1) To provide purse money for an Illinois stallion
12    stakes program.
13        (5) No less than 90% 80% of all monies appropriated
14    from the Illinois Thoroughbred Breeders Fund shall be
15    expended for the purposes in (1), (2), (2.5), (3), (4),
16    (4.1), and (5) as shown above.
17        (6) To provide for educational programs regarding the
18    thoroughbred breeding industry.
19        (7) To provide for research programs concerning the
20    health, development and care of the thoroughbred horse.
21        (8) To provide for a scholarship and training program
22    for students of equine veterinary medicine.
23        (9) To provide for dissemination of public information
24    designed to promote the breeding of thoroughbred horses in
25    Illinois.
26        (10) To provide for all expenses incurred in the

 

 

09600SB0737ham002- 187 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 188 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 189 -LRB096 06805 ASK 44784 a

1horse race meeting, 50% from the organization licensee's
2account and 50% from the purse account of the licensee share of
3the money wagered: 11 1/2% to the breeders of the horses in
4each such race which are the official first, second, third and
5fourth finishers and 1 1/2% 1% to the organization representing
6thoroughbred breeders and owners whose representative serves
7on the Illinois Thoroughbred Breeders Fund Advisory Board for
8verifying the amounts of breeders' awards earned, assuring
9their proper distribution in accordance with this Act, and
10servicing and promoting the Illinois thoroughbred horse racing
11industry. The organization representing thoroughbred breeders
12and owners shall cause all expenditures of monies received
13under this subsection (j) to be audited at least annually by a
14registered public accountant. The organization shall file
15copies of each annual audit with the Racing Board, the Clerk of
16the House of Representatives and the Secretary of the Senate,
17and shall make copies of each annual audit available to the
18public upon request and upon payment of the reasonable cost of
19photocopying the requested number of copies.
20    The 11 1/2% paid to the breeders in accordance with this
21subsection shall be distributed as follows:
22        (1) 60% of such sum shall be paid to the breeder of the
23    horse which finishes in the official first position;
24        (2) 20% of such sum shall be paid to the breeder of the
25    horse which finishes in the official second position;
26        (3) 15% of such sum shall be paid to the breeder of the

 

 

09600SB0737ham002- 190 -LRB096 06805 ASK 44784 a

1    horse which finishes in the official third position; and
2        (4) 5% of such sum shall be paid to the breeder of the
3    horse which finishes in the official fourth position.
4    Such payments shall not reduce any award to the owners of a
5horse or reduce the taxes payable under this Act. Upon
6completion of its racing meet, each organization licensee shall
7deliver to the organization representing thoroughbred breeders
8and owners whose representative serves on the Illinois
9Thoroughbred Breeders Fund Advisory Board a listing of all the
10Illinois foaled and the Illinois conceived and foaled horses
11which won breeders' awards and the amount of such breeders'
12awards in accordance with the provisions of this Act. Such
13payments shall be delivered by the organization licensee within
1430 days of the end of each race meeting.
15    (k) The term "breeder", as used herein, means the owner of
16the mare at the time the foal is dropped. An "Illinois foaled
17horse" is a foal dropped by a mare which enters this State on
18or before December 1, in the year in which the horse is bred,
19provided the mare remains continuously in this State until its
20foal is born. An "Illinois foaled horse" also means a foal born
21of a mare in the same year as the mare enters this State on or
22before March 1, and remains in this State at least 30 days
23after foaling, is bred back during the season of the foaling to
24an Illinois Registered Stallion (unless a veterinarian
25certifies that the mare should not be bred for health reasons),
26and is not bred to a stallion standing in any other state

 

 

09600SB0737ham002- 191 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 192 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 193 -LRB096 06805 ASK 44784 a

1for colts and fillies and various age groups to race, public
2wagering on such races, and the previous racing schedule.
3    (n) The Board and the organizational licensee shall notify
4the Department of the conditions and minimum purses for races
5limited to Illinois conceived and foaled and Illinois foaled
6horses conducted for each organizational licensee conducting a
7thoroughbred racing meeting. The Department of Agriculture
8with the advice and assistance of the Illinois Thoroughbred
9Breeders Fund Advisory Board may allocate monies for purse
10supplements for such races. In determining whether to allocate
11money and the amount, the Department of Agriculture shall
12consider factors, including but not limited to, the amount of
13money appropriated for the Illinois Thoroughbred Breeders Fund
14program, the number of races that may occur, and the
15organizational licensee's purse structure.
16    (o) In order to improve the breeding quality of
17thoroughbred horses in the State, the General Assembly
18recognizes that existing provisions of this Section to
19encourage such quality breeding need to be revised and
20strengthened. As such, a Thoroughbred Breeder's Program Task
21Force is to be appointed by the Governor by September 1, 1999
22to make recommendations to the General Assembly by no later
23than March 1, 2000. This task force is to be composed of 2
24representatives from the Illinois Thoroughbred Breeders and
25Owners Foundation, 2 from the Illinois Thoroughbred Horsemen's
26Association, 3 from Illinois race tracks operating

 

 

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1thoroughbred race meets for an average of at least 30 days in
2the past 3 years, the Director of Agriculture, the Executive
3Director of the Racing Board, who shall serve as Chairman.
4(Source: P.A. 91-40, eff. 6-25-99.)
 
5    (230 ILCS 5/30.5)
6    Sec. 30.5. Illinois Quarter Horse Breeders Fund.
7    (a) The General Assembly declares that it is the policy of
8this State to encourage the breeding of racing quarter horses
9in this State and the ownership of such horses by residents of
10this State in order to provide for sufficient numbers of high
11quality racing quarter horses in this State and to establish
12and preserve the agricultural and commercial benefits of such
13breeding and racing industries to the State of Illinois. It is
14the intent of the General Assembly to further this policy by
15the provisions of this Act.
16    (b) There is hereby created a non-appropriated trust
17special fund in the State Treasury to be known as the Illinois
18Racing Quarter Horse Breeders Fund, which is held separate and
19apart from State moneys. Except as provided in subsection (g)
20of Section 27 of this Act, 8.5% of all the moneys received by
21the State as pari-mutuel taxes on quarter horse racing shall be
22paid into the Illinois Racing Quarter Horse Breeders Fund. The
23Illinois Racing Quarter Horse Breeders Fund shall not be
24subject to administrative charges or chargebacks, including,
25but not limited to, those authorized under Section 8h of the

 

 

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

 

 

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1Racing Quarter Horse Breeders Fund shall be expended by the
2Department of Agriculture, with the advice and assistance of
3the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
4for the following purposes only:
5        (1) To provide stakes and awards to be paid to the
6    owners of the winning horses in certain races. This
7    provision is limited to Illinois conceived and foaled
8    horses.
9        (2) To provide an award to the owner or owners of an
10    Illinois conceived and foaled horse that wins a race when
11    pari-mutuel wagering is conducted; providing the race is
12    not restricted to Illinois conceived and foaled horses.
13        (3) To provide purse money for an Illinois stallion
14    stakes program.
15        (4) To provide for purses to be distributed for the
16    running of races during the Illinois State Fair and the
17    DuQuoin State Fair exclusively for quarter horses
18    conceived and foaled in Illinois.
19        (5) To provide for purses to be distributed for the
20    running of races at Illinois county fairs exclusively for
21    quarter horses conceived and foaled in Illinois.
22        (6) To provide for purses to be distributed for running
23    races exclusively for quarter horses conceived and foaled
24    in Illinois at locations in Illinois determined by the
25    Department of Agriculture with advice and consent of the
26    Racing Quarter Horse Breeders Fund Advisory Board.

 

 

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

 

 

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

 

 

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1preserve the agricultural and commercial benefits of such
2breeding and racing industries to the State of Illinois. It is
3the intent of the General Assembly to further this policy by
4the provisions of this Section of this Act.
5    (b) Each organization licensee conducting a harness racing
6meeting pursuant to this Act shall provide for at least two
7races each race program limited to Illinois conceived and
8foaled horses. A minimum of 6 races shall be conducted each
9week limited to Illinois conceived and foaled horses. No horses
10shall be permitted to start in such races unless duly
11registered under the rules of the Department of Agriculture.
12    (b-5) Organization licensees, not including the Illinois
13State Fair or the DuQuoin State Fair, shall provide stake races
14and early closer races for Illinois conceived and foaled horses
15so that purses distributed for such races shall be no less than
1617% of total purses distributed for harness racing in that
17calendar year in addition to any stakes payments and starting
18fees contributed by horse owners.
19    (b-10) Each organization licensee conducting a harness
20racing meeting pursuant to this Act shall provide an owner
21award to be paid from the purse account equal to 25% of the
22amount earned by Illinois conceived and foaled horses in races
23that are not restricted to Illinois conceived and foaled
24horses. The owner awards shall not be paid on races below the
25$10,000 claiming class.
26    (c) Conditions of races under subsection (b) shall be

 

 

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

 

 

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

 

 

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

 

 

09600SB0737ham002- 203 -LRB096 06805 ASK 44784 a

1    conducting pari-mutuel wagering during the advertised
2    dates of a county fair.
3        9. To pay up to $50,000 annually for the Department of
4    Agriculture to conduct drug testing at county fairs racing
5    standardbred horses.
6        10. To pay up to $100,000 annually for distribution to
7    Illinois county fairs to supplement premiums offered in
8    junior classes.
9        11. To pay up to $100,000 annually for division and
10    equal distribution to the animal sciences department of
11    each Illinois public university system engaged in equine
12    research and education on or before the effective date of
13    this amendatory Act of the 96th General Assembly for equine
14    research and education.
15    (h) (Blank) Whenever the Governor finds that the amount in
16the Illinois Standardbred Breeders Fund is more than the total
17of the outstanding appropriations from such fund, the Governor
18shall notify the State Comptroller and the State Treasurer of
19such fact. The Comptroller and the State Treasurer, upon
20receipt of such notification, shall transfer such excess amount
21from the Illinois Standardbred Breeders Fund to the General
22Revenue Fund.
23    (i) A sum equal to 13% 12 1/2% of the first prize money of
24the gross every purse won by an Illinois conceived and foaled
25horse shall be paid 50% by the organization licensee conducting
26the horse race meeting to the breeder of such winning horse

 

 

09600SB0737ham002- 204 -LRB096 06805 ASK 44784 a

1from the organization licensee's account and 50% from the purse
2account of the licensee share of the money wagered. Such
3payment shall not reduce any award to the owner of the horse or
4reduce the taxes payable under this Act. Such payment shall be
5delivered by the organization licensee at the end of each
6quarter race meeting.
7    (j) The Department of Agriculture shall, by rule, with the
8assistance and advice of the Illinois Standardbred Breeders
9Fund Advisory Board:
10        1. Qualify stallions for Illinois Standardbred
11    Breeders Fund breeding; such stallion shall be owned by a
12    resident of the State of Illinois or by an Illinois
13    corporation all of whose shareholders, directors, officers
14    and incorporators are residents of the State of Illinois.
15    Such stallion shall stand for service at and within the
16    State of Illinois at the time of a foal's conception, and
17    such stallion must not stand for service at any place, nor
18    may semen from such stallion be transported, outside the
19    State of Illinois during that calendar year in which the
20    foal is conceived and that the owner of the stallion was
21    for the 12 months prior, a resident of Illinois. Foals
22    conceived outside the State of Illinois from shipped semen
23    from a stallion qualified for breeders' awards under this
24    Section are not eligible to participate in the Illinois
25    conceived and foaled program. The articles of agreement of
26    any partnership, joint venture, limited partnership,

 

 

09600SB0737ham002- 205 -LRB096 06805 ASK 44784 a

1    syndicate, association or corporation and any bylaws and
2    stock certificates must contain a restriction that
3    provides that the ownership or transfer of interest by any
4    one of the persons a party to the agreement can only be
5    made to a person who qualifies as an Illinois resident.
6        2. Provide for the registration of Illinois conceived
7    and foaled horses and no such horse shall compete in the
8    races limited to Illinois conceived and foaled horses
9    unless registered with the Department of Agriculture. The
10    Department of Agriculture may prescribe such forms as may
11    be necessary to determine the eligibility of such horses.
12    No person shall knowingly prepare or cause preparation of
13    an application for registration of such foals containing
14    false information. A mare (dam) must be in the state at
15    least 30 days prior to foaling or remain in the State at
16    least 30 days at the time of foaling. Beginning with the
17    1996 breeding season and for foals of 1997 and thereafter,
18    a foal conceived in the State of Illinois by transported
19    fresh semen may be eligible for Illinois conceived and
20    foaled registration provided all breeding and foaling
21    requirements are met. The stallion must be qualified for
22    Illinois Standardbred Breeders Fund breeding at the time of
23    conception and the mare must be inseminated within the
24    State of Illinois. The foal must be dropped in Illinois and
25    properly registered with the Department of Agriculture in
26    accordance with this Act.

 

 

09600SB0737ham002- 206 -LRB096 06805 ASK 44784 a

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

 

 

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1    are limited to Illinois conceived and foaled horses.
2    (k) The Department of Agriculture, with the advice and
3assistance of the Illinois Standardbred Breeders Fund Advisory
4Board, may allocate monies for purse supplements for such
5races. In determining whether to allocate money and the amount,
6the Department of Agriculture shall consider factors,
7including but not limited to, the amount of money appropriated
8for the Illinois Standardbred Breeders Fund program, the number
9of races that may occur, and an organizational licensee's purse
10structure. The organizational licensee shall notify the
11Department of Agriculture of the conditions and minimum purses
12for races limited to Illinois conceived and foaled horses to be
13conducted by each organizational licensee conducting a harness
14racing meeting for which purse supplements have been
15negotiated.
16    (l) All races held at county fairs and the State Fair which
17receive funds from the Illinois Standardbred Breeders Fund
18shall be conducted in accordance with the rules of the United
19States Trotting Association unless otherwise modified by the
20Department of Agriculture.
21    (m) At all standardbred race meetings held or conducted
22under authority of a license granted by the Board, and at all
23standardbred races held at county fairs which are approved by
24the Department of Agriculture or at the Illinois or DuQuoin
25State Fairs, no one shall jog, train, warm up or drive a
26standardbred horse unless he or she is wearing a protective

 

 

09600SB0737ham002- 208 -LRB096 06805 ASK 44784 a

1safety helmet, with the chin strap fastened and in place, which
2meets the standards and requirements as set forth in the 1984
3Standard for Protective Headgear for Use in Harness Racing and
4Other Equestrian Sports published by the Snell Memorial
5Foundation, or any standards and requirements for headgear the
6Illinois Racing Board may approve. Any other standards and
7requirements so approved by the Board shall equal or exceed
8those published by the Snell Memorial Foundation. Any
9equestrian helmet bearing the Snell label shall be deemed to
10have met those standards and requirements.
11(Source: P.A. 91-239, eff. 1-1-00.)
 
12    (230 ILCS 5/31.1)  (from Ch. 8, par. 37-31.1)
13    Sec. 31.1. (a) Organization licensees collectively shall
14contribute annually to charity the sum of $1,000,000 $750,000
15to non-profit organizations that provide medical and family,
16counseling, and similar services to persons who reside or work
17on the backstretch of Illinois racetracks. These contributions
18shall be collected as follows: (i) no later than July 1st of
19each year the Board shall assess each organization licensee,
20except those tracks which are not within 100 miles of each
21other which tracks shall pay $40,000 $30,000 annually apiece
22into the Board charity fund, that amount which equals $920,000
23$690,000 multiplied by the amount of pari-mutuel wagering
24handled by the organization licensee in the year preceding
25assessment and divided by the total pari-mutuel wagering

 

 

09600SB0737ham002- 209 -LRB096 06805 ASK 44784 a

1handled by all Illinois organization licensees, except those
2tracks which are not within 100 miles of each other, in the
3year preceding assessment; (ii) notice of the assessed
4contribution shall be mailed to each organization licensee;
5(iii) within thirty days of its receipt of such notice, each
6organization licensee shall remit the assessed contribution to
7the Board. If an organization licensee wilfully fails to so
8remit the contribution, the Board may revoke its license to
9conduct horse racing.
10    (b) No later than October 1st of each year, any qualified
11charitable organization seeking an allotment of contributed
12funds shall submit to the Board an application for those funds,
13using the Board's approved form. No later than December 31st of
14each year, the Board shall distribute all such amounts
15collected that year to such charitable organization
16applicants.
17(Source: P.A. 87-110.)
 
18    (230 ILCS 5/32.1)
19    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
20real estate equalization.
21    (a) In order to encourage new investment in Illinois
22racetrack facilities and mitigate differing real estate tax
23burdens among all racetracks, the licensees affiliated or
24associated with each racetrack that has been awarded live
25racing dates in the current year shall receive an immediate

 

 

09600SB0737ham002- 210 -LRB096 06805 ASK 44784 a

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

 

 

09600SB0737ham002- 211 -LRB096 06805 ASK 44784 a

1during which an organization licensee begins conducting
2electronic gaming operations pursuant to Section 56 of this
3Act, the maximum credit amount an organization licensee shall
4be eligible to receive pursuant to this Section shall be equal
5to 50% of the credit awarded to the organization licensee in
6calendar year 2010.
7(Source: P.A. 91-40, eff. 6-25-99.)
 
8    (230 ILCS 5/34.3 new)
9    Sec. 34.3. Drug testing. The Illinois Racing Board and the
10Department of Agriculture shall jointly establish a program for
11the purpose of conducting drug testing of horses at county
12fairs and shall adopt any rules necessary for enforcement of
13the program. The rules shall include appropriate penalties for
14violations.
 
15    (230 ILCS 5/36)   (from Ch. 8, par. 37-36)
16    Sec. 36. (a) Whoever administers or conspires to administer
17to any horse a hypnotic, narcotic, stimulant, depressant or any
18chemical substance which may affect the speed of a horse at any
19time in any race where the purse or any part of the purse is
20made of money authorized by any Section of this Act, except
21those chemical substances permitted by ruling of the Board,
22internally, externally or by hypodermic method in a race or
23prior thereto, or whoever knowingly enters a horse in any race
24within a period of 24 hours after any hypnotic, narcotic,

 

 

09600SB0737ham002- 212 -LRB096 06805 ASK 44784 a

1stimulant, depressant or any other chemical substance which may
2affect the speed of a horse at any time, except those chemical
3substances permitted by ruling of the Board, has been
4administered to such horse either internally or externally or
5by hypodermic method for the purpose of increasing or retarding
6the speed of such horse shall be guilty of a Class 4 felony.
7The Board shall suspend or revoke such violator's license.
8    (b) The term "hypnotic" as used in this Section includes
9all barbituric acid preparations and derivatives.
10    (c) The term "narcotic" as used in this Section includes
11opium and all its alkaloids, salts, preparations and
12derivatives, cocaine and all its salts, preparations and
13derivatives and substitutes.
14    (d) The provisions of this Section 36 and the treatment
15authorized herein apply to horses entered in and competing in
16race meetings as defined in Section 3.47 of this Act and to
17horses entered in and competing at any county fair.
18(Source: P.A. 79-1185.)
 
19    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)
20    Sec. 40. (a) The imposition of any fine or penalty provided
21in this Act shall not preclude the Board in its rules and
22regulations from imposing a fine or penalty for any other
23action which, in the Board's discretion, is a detriment or
24impediment to horse racing.
25    (b) The Director of Agriculture or his or her authorized

 

 

09600SB0737ham002- 213 -LRB096 06805 ASK 44784 a

1representative shall impose the following monetary penalties
2and hold administrative hearings as required for failure to
3submit the following applications, lists, or reports within the
4time period, date or manner required by statute or rule or for
5removing a foal from Illinois prior to inspection: