Sen. Terry Link

Filed: 11/30/2010

 

 


 

 


 
09600SB0737sam001LRB096 06805 ASK 44267 a

1
AMENDMENT TO SENATE BILL 737

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

 
5    Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act.
 
7    Section 1-5. Definitions. As used in this Act:
8    "Authority" means the Chicago Casino Development Authority
9created by this Act.
10    "Board" means the board appointed pursuant to this Act to
11govern and control the Authority.
12    "Casino" means one temporary land-based or water-based
13facility and a permanent land-based or water-based facility, at
14each of which lawful gambling is authorized and licensed as
15provided in the Illinois Gambling Act.

 

 

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

 

 

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

 

 

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1removal.
2    (a) The Mayor shall appoint one member of the Board for an
3initial term expiring July 1 of the year following approval by
4the Gaming Board, one member for an initial term expiring July
51 three years following approval by the Gaming Board, and one
6member for an initial term expiring July 1 five years following
7approval by the Gaming Board.
8    (b) All successors shall hold office for a term of 5 years
9from the first day of July of the year in which they are
10appointed, except in the case of an appointment to fill a
11vacancy. Each member, including the chairperson, shall hold
12office until the expiration of his or her term and until his or
13her successor is appointed and qualified. Nothing shall
14preclude a member from serving consecutive terms. Any member
15may resign from office, to take effect when a successor has
16been appointed and qualified. A vacancy in office shall occur
17in the case of a member's death or indictment, conviction, or
18plea of guilty to a felony. A vacancy shall be filled for the
19unexpired term by the Mayor with the approval of the Gaming
20Board.
21    (c) The Mayor or the Gaming Board may remove any member of
22the Board upon a finding of incompetence, neglect of duty, or
23misfeasance or malfeasance in office or for a violation of this
24Act. The Gaming Board may remove any member of the Board for
25any violation of the Illinois Gambling Act or the rules and
26regulations of the Gaming Board.
 

 

 

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

 

 

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1personnel, superintendents, managers, and other personnel
2appointed or employed pursuant to this Act shall report to the
3executive director. In addition to any other duties set forth
4in this Act, the executive director shall do all of the
5following:
6        (1) Direct and supervise the administrative affairs
7    and activities of the Authority in accordance with its
8    rules, regulations, and policies.
9        (2) Attend meetings of the Board.
10        (3) Keep minutes of all proceedings of the Board.
11        (4) Approve all accounts for salaries, per diem
12    payments, and allowable expenses of the Board and its
13    employees and consultants.
14        (5) Report and make recommendations to the Board
15    concerning the terms and conditions of any casino
16    management contract.
17        (6) Perform any other duty that the Board requires for
18    carrying out the provisions of this Act.
19        (7) Devote his or her full time to the duties of the
20    office and not hold any other office or employment.
21    (b) The Board may select a secretary-treasurer to hold
22office at the pleasure of the Board. The Board shall fix the
23duties of such officer.
 
24    Section 1-31. General rights and powers of the Authority.
25In addition to the duties and powers set forth in this Act, the

 

 

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

 

 

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

 

 

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1        (16) Issue bonds as provided for under this Act.
2        (17) Receive and accept from any source, private or
3    public, contributions, gifts, or grants of money or
4    property to the Authority.
5        (18) Provide for the insurance of any property,
6    operations, officers, members, agents, or employees of the
7    Authority against any risk or hazard, to self-insure or
8    participate in joint self-insurance pools or entities to
9    insure against such risk or hazard, and to provide for the
10    indemnification of its officers, members, employees,
11    contractors, or agents against any and all risks.
12        (19) Exercise all the corporate powers granted
13    Illinois corporations under the Business Corporation Act
14    of 1983, except to the extent that powers are inconsistent
15    with those of a body politic and corporate of the State.
16        (20) Do all things necessary or convenient to carry out
17    the powers granted by this Act.
 
18    Section 1-32. Ethical Conduct.
19    (a) Board members and employees of the Authority must carry
20out their duties and responsibilities in such a manner as to
21promote and preserve public trust and confidence in the
22integrity and conduct of gaming.
23    (b) Except as may be required in the conduct of official
24duties, Board members and employees of the Authority shall not
25engage in gambling on any riverboat, in any casino, or in an

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1approval, the Board shall enter into a casino management
2contract authorizing the development, construction, or
3operation of a casino. Validity of the casino management
4contract is contingent upon the issuance of a casino operator
5license to the successful bidder. If the Gaming Board approves
6the contract and grants a casino operator license, the Board
7shall transmit a copy of the executed casino management
8contract to the Gaming Board.
9    (d) After the Authority has been issued a casino license,
10the Gaming Board has issued a casino operator license, and the
11Gaming Board has approved the location of a temporary facility,
12the Authority may conduct gaming operations at a temporary
13facility for no longer than 24 months after gaming operations
14begin. The Gaming Board may, after holding a public hearing,
15grant an extension so long as a permanent facility is not
16operational and the Authority is working in good faith to
17complete the permanent facility. The Gaming Board may grant
18additional extensions following a public hearing. Each
19extension may be for a period of no longer than 6 months.
20    (e) Fifty percent of the total amount received by the
21Authority pursuant to a bid for a casino management contract or
22an executed casino management contract must be transmitted to
23the State and deposited into the Capital Projects Fund.
 
24    Section 1-50. Transfer of funds. The revenues received by
25the Authority (other than amounts required to be paid pursuant

 

 

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

 

 

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

 

 

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1after receiving the information required to be submitted by the
2Authority.
3    The Authority shall not issue bonds until it receives the
4report from the Auditor General indicating the requirements of
5this Section have been met. The Auditor General's report shall
6not be in the nature of a post-audit or examination and shall
7not lead to the issuance of an opinion, as that term is defined
8in generally accepted government auditing standards. The
9Auditor General shall submit a bill to the Authority for costs
10associated with the examinations and report required under this
11Section. The Authority shall reimburse in a timely manner.
12    (b) The Authority shall enter into an intergovernmental
13agreement with the Auditor General authorizing the Auditor
14General to, every 2 years, (i) review the financial audit of
15the Authority performed by the Authority's certified public
16accountants, (ii) perform a management audit of the Authority,
17and (iii) perform a management audit of the casino operator
18licensee. The Auditor General shall provide the Authority and
19the General Assembly with the audits and shall post a copy on
20his or her website. The Auditor General shall submit a bill to
21the Authority for costs associated with the review and the
22audit required under this Section, which costs shall not exceed
23$100,000, and the Authority shall reimburse the Auditor General
24for such costs in a timely manner.
 
25    Section 1-62. Advisory committee. An Advisory Committee is

 

 

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1established to monitor, review, and report on (1) the
2Authority's utilization of minority-owned business enterprises
3and female-owned business enterprises, (2) employment of
4females, and (3) employment of minorities with regard to the
5development and construction of the casino as authorized under
6Section 7 of the Illinois Gambling Act. The Authority shall
7work with the Advisory Committee in accumulating necessary
8information for the Committee to submit reports, as necessary,
9to the General Assembly and to the City of Chicago.
10    The Committee shall consist of 15 members as provided in
11this Section. Seven members shall be selected by the Mayor of
12the City of Chicago; 2 members shall be selected by the
13President of the Illinois Senate; 2 members shall be selected
14by the Speaker of the House of Representatives; 2 members shall
15be selected by the Minority Leader of the Senate; and 2 members
16shall be selected by the Minority Leader of the House of
17Representatives. The Advisory Committee shall meet
18periodically and shall report the information to the Mayor of
19the City and to the General Assembly by December 31st of every
20year.
21    The Advisory Committee shall be dissolved on the date that
22casino gambling operations are first conducted under the
23license authorized under Section 7 of the Illinois Gambling
24Act, other than at a temporary facility.
25    For the purposes of this Section, the terms "female" and
26"minority person" have the meanings provided in Section 2 of

 

 

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1the Business Enterprise for Minorities, Females, and Persons
2with Disabilities Act.
 
3    Section 1-65. Acquisition of property; eminent domain
4proceedings. For the lawful purposes of this Act, the City may
5acquire by eminent domain or by condemnation proceedings in the
6manner provided by the Eminent Domain Act, real or personal
7property or interests in real or personal property located in
8the City, and the City may convey to the Authority property so
9acquired. The acquisition of property under this Section is
10declared to be for a public use.
 
11    Section 1-70. Local regulation. The casino facilities and
12operations therein shall be subject to all ordinances and
13regulations of the City. The construction, development, and
14operation of the casino shall comply with all ordinances,
15regulations, rules, and controls of the City, including but not
16limited to those relating to zoning and planned development,
17building, fire prevention, and land use. However, the
18regulation of gaming operations is subject to the exclusive
19jurisdiction of the Gaming Board.
 
20    Section 1-75. Borrowing.
21    (a) The Authority may borrow money and issue bonds as
22provided in this Section. Bonds of the Authority may be issued
23to provide funds for land acquisition, site assembly and

 

 

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

 

 

09600SB0737sam001- 22 -LRB096 06805 ASK 44267 a

1from funds or accounts maintained pursuant to a bond resolution
2or trust indenture; (vii) proceeds of refunding bonds; (viii)
3any other revenues derived from or payments by the City; and
4(ix) any payments by any casino operator licensee or others
5pursuant to any guaranty agreement.
6    (c) Bonds shall be authorized by a resolution of the
7Authority and may be secured by a trust indenture by and
8between the Authority and a corporate trustee or trustees,
9which may be any trust company or bank having the powers of a
10trust company within or without the State. Bonds shall meet the
11following requirements:
12        (1) Bonds shall bear interest at a rate not to exceed
13    the maximum rate authorized by the Bond Authorization Act.
14        (2) Bonds issued pursuant to this Section may be
15    payable on such dates and times as may be provided for by
16    the resolution or indenture authorizing the issuance of
17    such bonds; provided, however, that such bonds shall mature
18    no later than 30 years from the date of issuance.
19        (3) At least 25%, based on total principal amount, of
20    all bonds issued pursuant to this Section shall be sold
21    pursuant to notice of sale and public bid. No more than
22    75%, based on total principal amount, of all bonds issued
23    pursuant to this Section shall be sold by negotiated sale.
24        (4) Bonds shall be payable at a time or times, in the
25    denominations and form, including book entry form, either
26    coupon, registered, or both, and carry the registration and

 

 

09600SB0737sam001- 23 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 24 -LRB096 06805 ASK 44267 a

1in periodicals and newspapers, mailings, and other appropriate
2media. The Authority shall submit to the General Assembly a
3comprehensive report that shall include, at a minimum, the
4details of the procurement plan, outreach efforts, and the
5results of the efforts to achieve goals for the payment of
6fees.
7    (e) Subject to the Illinois Gambling Act and rules of the
8Gaming Board regarding pledging of interests in holders of
9owners licenses, any resolution or trust indenture may contain
10provisions that may be a part of the contract with the holders
11of the bonds as to the following:
12        (1) Pledging, assigning, or directing the use,
13    investment, or disposition of revenues of the Authority or
14    proceeds or benefits of any contract, including without
15    limitation, any rights in any casino management contract.
16        (2) The setting aside of loan funding deposits, debt
17    service reserves, replacement or operating reserves, cost
18    of issuance accounts and sinking funds, and the regulation,
19    investment, and disposition thereof.
20        (3) Limitations on the purposes to which or the
21    investments in which the proceeds of sale of any issue of
22    bonds or the Authority's revenues and receipts may be
23    applied or made.
24        (4) Limitations on the issue of additional bonds, the
25    terms upon which additional bonds may be issued and
26    secured, the terms upon which additional bonds may rank on

 

 

09600SB0737sam001- 25 -LRB096 06805 ASK 44267 a

1    a parity with, or be subordinate or superior to, other
2    bonds.
3        (5) The refunding, advance refunding, or refinancing
4    of outstanding bonds.
5        (6) The procedure, if any, by which the terms of any
6    contract with bondholders may be altered or amended and the
7    amount of bonds and holders of which must consent thereto
8    and the manner in which consent shall be given.
9        (7) Defining the acts or omissions which shall
10    constitute a default in the duties of the Authority to
11    holders of bonds and providing the rights or remedies of
12    such holders in the event of a default, which may include
13    provisions restricting individual rights of action by
14    bondholders.
15        (8) Providing for guarantees, pledges of property,
16    letters of credit, or other security, or insurance for the
17    benefit of bondholders.
18    (f) No member of the Board, nor any person executing the
19bonds, shall be liable personally on the bonds or subject to
20any personal liability by reason of the issuance of the bonds.
21    (g) The Authority may issue and secure bonds in accordance
22with the provisions of the Local Government Credit Enhancement
23Act.
24    (h) A pledge by the Authority of revenues and receipts as
25security for an issue of bonds or for the performance of its
26obligations under any casino management contract shall be valid

 

 

09600SB0737sam001- 26 -LRB096 06805 ASK 44267 a

1and binding from the time when the pledge is made. The revenues
2and receipts pledged shall immediately be subject to the lien
3of the pledge without any physical delivery or further act, and
4the lien of any pledge shall be valid and binding against any
5person having any claim of any kind in tort, contract, or
6otherwise against the Authority, irrespective of whether the
7person has notice. No resolution, trust indenture, management
8agreement or financing statement, continuation statement, or
9other instrument adopted or entered into by the Authority need
10be filed or recorded in any public record other than the
11records of the Authority in order to perfect the lien against
12third persons, regardless of any contrary provision of law.
13    (i) Bonds that are being paid or retired by issuance, sale,
14or delivery of bonds, and bonds for which sufficient funds have
15been deposited with the paying agent or trustee to provide for
16payment of principal and interest thereon, and any redemption
17premium, as provided in the authorizing resolution, shall not
18be considered outstanding for the purposes of this subsection.
19    (j) The bonds of the Authority shall not be indebtedness of
20the State. The bonds of the Authority are not general
21obligations of the State and are not secured by a pledge of the
22full faith and credit of the State and the holders of bonds of
23the Authority may not require, except as provided in this Act,
24the application of State revenues or funds to the payment of
25bonds of the Authority.
26    (k) The State of Illinois pledges and agrees with the

 

 

09600SB0737sam001- 27 -LRB096 06805 ASK 44267 a

1owners of the bonds that it will not limit or alter the rights
2and powers vested in the Authority by this Act so as to impair
3the terms of any contract made by the Authority with the owners
4or in any way impair the rights and remedies of the owners
5until the bonds, together with interest on them, and all costs
6and expenses in connection with any action or proceedings by or
7on behalf of the owners, are fully met and discharged. The
8Authority is authorized to include this pledge and agreement in
9any contract with the owners of bonds issued under this
10Section.
11    (l) No person holding an elective office in this State,
12holding a seat in the General Assembly, or serving as a board
13member, trustee, officer, or employee of the Authority,
14including the spouse of that person, may receive a legal,
15banking, consulting, or other fee related to the issuance of
16bonds.
 
17    Section 1-85. Derivative products. With respect to all or
18part of any issue of its bonds, the Authority may enter into
19agreements or contracts with any necessary or appropriate
20person, which will have the benefit of providing to the
21Authority an interest rate basis, cash flow basis, or other
22basis different from that provided in the bonds for the payment
23of interest. Such agreements or contracts may include, without
24limitation, agreements or contracts commonly known as
25"interest rate swap agreements", "forward payment conversion

 

 

09600SB0737sam001- 28 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 29 -LRB096 06805 ASK 44267 a

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

 

 

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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
25operator licensee; disclosure requirements.

 

 

09600SB0737sam001- 31 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 32 -LRB096 06805 ASK 44267 a

1the contract.
2    (c) As used in this Section:
3    "Contribution" means contribution as defined in Section
49-1.4 of the Election Code.
5    "Affiliated person" means (i) any person with any ownership
6interest or distributive share of the bidding, responding, or
7contracting entity in excess of 1%, (ii) executive employees of
8the bidding, responding, or contracting entity, and (iii) the
9spouse and minor children of any such persons.
10    "Affiliated entity" means (i) any parent or subsidiary of
11the bidding or contracting entity, (ii) any member of the same
12unitary business group, or (iii) any political committee for
13which the bidding, responding, or contracting entity is the
14sponsoring entity.
15    (d) The Gaming Board may direct the Authority or a casino
16operator licensee to void a contract if a violation of this
17Section occurs. The Authority may direct a casino operator
18licensee to void a contract if a violation of this Section
19occurs.
 
20    Section 1-115. Purchasing.
21    (a) All construction contracts and contracts for supplies,
22materials, equipment, and services, when the cost thereof to
23the Authority exceeds $25,000, shall be let by a competitive
24selection process to the lowest responsible proposer, after
25advertising for proposals, except for the following:

 

 

09600SB0737sam001- 33 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 34 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 35 -LRB096 06805 ASK 44267 a

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

 

 

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

 

 

09600SB0737sam001- 37 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 38 -LRB096 06805 ASK 44267 a

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

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

 

 

09600SB0737sam001- 39 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 40 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 41 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 42 -LRB096 06805 ASK 44267 a

1and supply the signs specified in Section 10.7 of the Illinois
2Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
31975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
4of the Charitable Games Act, and Section 13.1 of the Illinois
5Riverboat Gambling Act.
6(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
7    Section 90-7. The Department of Commerce and Economic
8Opportunity Law of the Civil Administrative Code of Illinois is
9amended by adding Section 605-530 as follows:
 
10    (20 ILCS 605/605-530 new)
11    Sec. 605-530. The Depressed Communities Economic
12Development Board.
13    (a) The Depressed Communities Economic Development Board
14is created as an advisory board within the Department of
15Commerce and Economic Opportunity. The Board shall consist of
1610 members as follows:
17        (1) Two members appointed by the President of the
18    Senate, one of whom is appointed to serve an initial term
19    of one year and one of whom is appointed to serve an
20    initial term of 2 years.
21        (2) Two members appointed by the Minority Leader of the
22    Senate, one of whom is appointed to serve an initial term
23    of one year and one of whom is appointed to serve an
24    initial term of 2 years.

 

 

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

 

 

09600SB0737sam001- 44 -LRB096 06805 ASK 44267 a

1Depressed Communities Economic Development Fund, a special
2fund created in the State treasury. The Department must make
3grants to public or private entities submitting proposals to
4the Board to revitalize an Illinois depressed community. Grants
5may be used by these entities only for those purposes
6conditioned with the grant. For the purposes of this subsection
7(c), plans for revitalizing an Illinois depressed community
8include plans intended to curb high levels of poverty,
9unemployment, job and population loss, and general distress. An
10Illinois depressed community is an area where the poverty rate,
11as determined by using the most recent data released by the
12United States Census Bureau, is at least 3% greater than the
13State poverty rate as determined by using the most recent data
14released by the United States Census Bureau.
 
15    Section 90-10. The Department of Revenue Law of the Civil
16Administrative Code of Illinois is amended by changing Section
172505-305 as follows:
 
18    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
19    Sec. 2505-305. Investigators.
20    (a) The Department has the power to appoint investigators
21to conduct all investigations, searches, seizures, arrests,
22and other duties imposed under the provisions of any law
23administered by the Department. Except as provided in
24subsection (c), these investigators have and may exercise all

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1commission shall make available to the Auditor General its
2books and records and any other documentation, whether in the
3possession of its trustees or other parties, necessary to
4conduct the audit required. These audit requirements apply only
5through July 1, 2007.
6    The Auditor General must conduct audits of the Rend Lake
7Conservancy District as provided in Section 25.5 of the River
8Conservancy Districts Act.
9    The Auditor General must conduct financial audits of the
10Southeastern Illinois Economic Development Authority as
11provided in Section 70 of the Southeastern Illinois Economic
12Development Authority Act.
13    The Auditor General shall conduct a compliance audit in
14accordance with subsections (d) and (f) of Section 30 of the
15Innovation Development and Economy Act.
16(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
1796-939, eff. 6-24-10.)
 
18    Section 90-15. The State Finance Act is amended by adding
19Sections 5.786, 5.787, 5.788, and 6z-79 and by changing Section
206z-77 as follows:
 
21    (30 ILCS 105/5.786 new)
22    Sec. 5.786. The State and County Fair Assistance Fund.
 
23    (30 ILCS 105/5.787 new)

 

 

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1    Sec. 5.787. The Depressed Communities Economic Development
2Fund.
 
3    (30 ILCS 105/5.788 new)
4    Sec. 5.788. The Gaming Facilities Fee Revenue Fund.
 
5    (30 ILCS 105/6z-77)
6    Sec. 6z-77. The Capital Projects Fund.
7    (a) The Capital Projects Fund is created as a special fund
8in the State Treasury. The State Comptroller and State
9Treasurer shall transfer from the Capital Projects Fund to the
10General Revenue Fund $61,294,550 on October 1, 2009,
11$122,589,100 on January 1, 2010, and $61,294,550 on April 1,
122010. Beginning on July 1, 2010, and on July 1 and January 1 of
13each year thereafter, the State Comptroller and State Treasurer
14shall transfer the sum of $122,589,100 from the Capital
15Projects Fund to the General Revenue Fund.
16    (b) Subject to appropriation, the Capital Projects Fund may
17be used only for capital projects and the payment of debt
18service on bonds issued for capital projects. All interest
19earned on moneys in the Fund shall be deposited into the Fund.
20The Fund shall not be subject to administrative charges or
21chargebacks, such as but not limited to those authorized under
22Section 8h.
23    (c) Annually, the Governor's Office of Management and
24Budget shall determine if revenues deposited into the Fund in

 

 

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

 

 

09600SB0737sam001- 52 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 53 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 54 -LRB096 06805 ASK 44267 a

1    beginning prior to July 1, 1989 and ending after June 30,
2    1989, an amount equal to the sum of (i) 4% of the
3    taxpayer's net income for the period prior to July 1, 1989,
4    as calculated under Section 202.3, and (ii) 4.8% of the
5    taxpayer's net income for the period after June 30, 1989,
6    as calculated under Section 202.3.
7        (8) In the case of a corporation, for taxable years
8    beginning after June 30, 1989, an amount equal to 4.8% of
9    the taxpayer's net income for the taxable year.
10    (b-5) Surcharge; sale or exchange of assets, properties,
11and intangibles of gaming licensees. For each of taxable years
122010 through 2019, a surcharge is imposed on all taxpayers on
13income arising from the sale or exchange of capital assets,
14depreciable business property, real property used in the trade
15or business, and Section 197 intangibles (i) of an organization
16licensee under the Illinois Horse Racing Act of 1975 and (ii)
17of an owners licensee or an electronic gaming licensee under
18the Illinois Gambling Act. The amount of the surcharge is equal
19to the amount of federal income tax liability for the taxable
20year attributable to those sales and exchanges. The surcharge
21imposed shall not apply if:
22        (1) the owners license, electronic gaming license,
23    organization license, or race track property is
24    transferred as a result of any of the following:
25            (A) bankruptcy, a receivership, or a debt
26        adjustment initiated by or against the initial

 

 

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

 

 

09600SB0737sam001- 56 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 57 -LRB096 06805 ASK 44267 a

1imposed by this subsection and subsection (c) of this Section
2in the case of a corporation, other than a Subchapter S
3corporation and except as adjusted by subsection (d-1), shall
4be an additional amount equal to 2.85% of such taxpayer's net
5income for the taxable year, except that beginning on January
61, 1981, and thereafter, the rate of 2.85% specified in this
7subsection shall be reduced to 2.5%, and in the case of a
8partnership, trust or a Subchapter S corporation shall be an
9additional amount equal to 1.5% of such taxpayer's net income
10for the taxable year.
11    (d-1) Rate reduction for certain foreign insurers. In the
12case of a foreign insurer, as defined by Section 35A-5 of the
13Illinois Insurance Code, whose state or country of domicile
14imposes on insurers domiciled in Illinois a retaliatory tax
15(excluding any insurer whose premiums from reinsurance assumed
16are 50% or more of its total insurance premiums as determined
17under paragraph (2) of subsection (b) of Section 304, except
18that for purposes of this determination premiums from
19reinsurance do not include premiums from inter-affiliate
20reinsurance arrangements), beginning with taxable years ending
21on or after December 31, 1999, the sum of the rates of tax
22imposed by subsections (b) and (d) shall be reduced (but not
23increased) to the rate at which the total amount of tax imposed
24under this Act, net of all credits allowed under this Act,
25shall equal (i) the total amount of tax that would be imposed
26on the foreign insurer's net income allocable to Illinois for

 

 

09600SB0737sam001- 58 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 59 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 60 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 61 -LRB096 06805 ASK 44267 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09600SB0737sam001- 70 -LRB096 06805 ASK 44267 a

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

 

 

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

 

 

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

 

 

09600SB0737sam001- 73 -LRB096 06805 ASK 44267 a

1    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
2    Enterprise Zone Act shall be available only in the taxable
3    year in which the property is placed in service and shall
4    not be allowed to the extent that it would reduce a
5    taxpayer's liability for the tax imposed by subsections (a)
6    and (b) of this Section to below zero. For tax years ending
7    on or after December 31, 1987, the credit shall be allowed
8    for the tax year in which the property is placed in
9    service, or, if the amount of the credit exceeds the tax
10    liability for that year, whether it exceeds the original
11    liability or the liability as later amended, such excess
12    may be carried forward and applied to the tax liability of
13    the 5 taxable years following the excess credit year. The
14    credit shall be applied to the earliest year for which
15    there is a liability. If there is credit from more than one
16    tax year that is available to offset a liability, the
17    credit accruing first in time shall be applied first.
18        Changes made in this subdivision (h)(1) by Public Act
19    88-670 restore changes made by Public Act 85-1182 and
20    reflect existing law.
21        (2) The term qualified property means property which:
22            (A) is tangible, whether new or used, including
23        buildings and structural components of buildings;
24            (B) is depreciable pursuant to Section 167 of the
25        Internal Revenue Code, except that "3-year property"
26        as defined in Section 168(c)(2)(A) of that Code is not

 

 

09600SB0737sam001- 74 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 75 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 76 -LRB096 06805 ASK 44267 a

1Section by a fraction, the numerator of which is base income
2allocable to Illinois and the denominator of which is Illinois
3base income, and further multiplying the product by the tax
4rate imposed by subsections (a) and (b) of this Section.
5    Any credit earned on or after December 31, 1986 under this
6subsection which is unused in the year the credit is computed
7because it exceeds the tax liability imposed by subsections (a)
8and (b) for that year (whether it exceeds the original
9liability or the liability as later amended) may be carried
10forward and applied to the tax liability imposed by subsections
11(a) and (b) of the 5 taxable years following the excess credit
12year, provided that no credit may be carried forward to any
13year ending on or after December 31, 2003. This credit shall be
14applied first to the earliest year for which there is a
15liability. If there is a credit under this subsection from more
16than one tax year that is available to offset a liability the
17earliest credit arising under this subsection shall be applied
18first.
19    If, during any taxable year ending on or after December 31,
201986, the tax imposed by subsections (c) and (d) of this
21Section for which a taxpayer has claimed a credit under this
22subsection (i) is reduced, the amount of credit for such tax
23shall also be reduced. Such reduction shall be determined by
24recomputing the credit to take into account the reduced tax
25imposed by subsections (c) and (d). If any portion of the
26reduced amount of credit has been carried to a different

 

 

09600SB0737sam001- 77 -LRB096 06805 ASK 44267 a

1taxable year, an amended return shall be filed for such taxable
2year to reduce the amount of credit claimed.
3    (j) Training expense credit. Beginning with tax years
4ending on or after December 31, 1986 and prior to December 31,
52003, a taxpayer shall be allowed a credit against the tax
6imposed by subsections (a) and (b) under this Section for all
7amounts paid or accrued, on behalf of all persons employed by
8the taxpayer in Illinois or Illinois residents employed outside
9of Illinois by a taxpayer, for educational or vocational
10training in semi-technical or technical fields or semi-skilled
11or skilled fields, which were deducted from gross income in the
12computation of taxable income. The credit against the tax
13imposed by subsections (a) and (b) shall be 1.6% of such
14training expenses. For partners, shareholders of subchapter S
15corporations, and owners of limited liability companies, if the
16liability company is treated as a partnership for purposes of
17federal and State income taxation, there shall be allowed a
18credit under this subsection (j) to be determined in accordance
19with the determination of income and distributive share of
20income under Sections 702 and 704 and subchapter S of the
21Internal Revenue Code.
22    Any credit allowed under this subsection which is unused in
23the year the credit is earned may be carried forward to each of
24the 5 taxable years following the year for which the credit is
25first computed until it is used. This credit shall be applied
26first to the earliest year for which there is a liability. If

 

 

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1there is a credit under this subsection from more than one tax
2year that is available to offset a liability the earliest
3credit arising under this subsection shall be applied first. No
4carryforward credit may be claimed in any tax year ending on or
5after December 31, 2003.
6    (k) Research and development credit.
7    For tax years ending after July 1, 1990 and prior to
8December 31, 2003, and beginning again for tax years ending on
9or after December 31, 2004, and ending prior to January 1,
102011, a taxpayer shall be allowed a credit against the tax
11imposed by subsections (a) and (b) of this Section for
12increasing research activities in this State. The credit
13allowed against the tax imposed by subsections (a) and (b)
14shall be equal to 6 1/2% of the qualifying expenditures for
15increasing research activities in this State. For partners,
16shareholders of subchapter S corporations, and owners of
17limited liability companies, if the liability company is
18treated as a partnership for purposes of federal and State
19income taxation, there shall be allowed a credit under this
20subsection to be determined in accordance with the
21determination of income and distributive share of income under
22Sections 702 and 704 and subchapter S of the Internal Revenue
23Code.
24    For purposes of this subsection, "qualifying expenditures"
25means the qualifying expenditures as defined for the federal
26credit for increasing research activities which would be

 

 

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1allowable under Section 41 of the Internal Revenue Code and
2which are conducted in this State, "qualifying expenditures for
3increasing research activities in this State" means the excess
4of qualifying expenditures for the taxable year in which
5incurred over qualifying expenditures for the base period,
6"qualifying expenditures for the base period" means the average
7of the qualifying expenditures for each year in the base
8period, and "base period" means the 3 taxable years immediately
9preceding the taxable year for which the determination is being
10made.
11    Any credit in excess of the tax liability for the taxable
12year may be carried forward. A taxpayer may elect to have the
13unused credit shown on its final completed return carried over
14as a credit against the tax liability for the following 5
15taxable years or until it has been fully used, whichever occurs
16first; provided that no credit earned in a tax year ending
17prior to December 31, 2003 may be carried forward to any year
18ending on or after December 31, 2003, and no credit may be
19carried forward to any taxable year ending on or after January
201, 2011.
21    If an unused credit is carried forward to a given year from
222 or more earlier years, that credit arising in the earliest
23year will be applied first against the tax liability for the
24given year. If a tax liability for the given year still
25remains, the credit from the next earliest year will then be
26applied, and so on, until all credits have been used or no tax

 

 

09600SB0737sam001- 80 -LRB096 06805 ASK 44267 a

1liability for the given year remains. Any remaining unused
2credit or credits then will be carried forward to the next
3following year in which a tax liability is incurred, except
4that no credit can be carried forward to a year which is more
5than 5 years after the year in which the expense for which the
6credit is given was incurred.
7    No inference shall be drawn from this amendatory Act of the
891st General Assembly in construing this Section for taxable
9years beginning before January 1, 1999.
10    (l) Environmental Remediation Tax Credit.
11        (i) For tax years ending after December 31, 1997 and on
12    or before December 31, 2001, a taxpayer shall be allowed a
13    credit against the tax imposed by subsections (a) and (b)
14    of this Section for certain amounts paid for unreimbursed
15    eligible remediation costs, as specified in this
16    subsection. For purposes of this Section, "unreimbursed
17    eligible remediation costs" means costs approved by the
18    Illinois Environmental Protection Agency ("Agency") under
19    Section 58.14 of the Environmental Protection Act that were
20    paid in performing environmental remediation at a site for
21    which a No Further Remediation Letter was issued by the
22    Agency and recorded under Section 58.10 of the
23    Environmental Protection Act. The credit must be claimed
24    for the taxable year in which Agency approval of the
25    eligible remediation costs is granted. The credit is not
26    available to any taxpayer if the taxpayer or any related

 

 

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

 

 

09600SB0737sam001- 82 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 83 -LRB096 06805 ASK 44267 a

1    amount of the tax credit to be transferred as a portion of
2    the sale. In no event may a credit be transferred to any
3    taxpayer if the taxpayer or a related party would not be
4    eligible under the provisions of subsection (i).
5        (iii) For purposes of this Section, the term "site"
6    shall have the same meaning as under Section 58.2 of the
7    Environmental Protection Act.
8    (m) Education expense credit. Beginning with tax years
9ending after December 31, 1999, a taxpayer who is the custodian
10of one or more qualifying pupils shall be allowed a credit
11against the tax imposed by subsections (a) and (b) of this
12Section for qualified education expenses incurred on behalf of
13the qualifying pupils. The credit shall be equal to 25% of
14qualified education expenses, but in no event may the total
15credit under this subsection claimed by a family that is the
16custodian of qualifying pupils exceed $500. In no event shall a
17credit under this subsection reduce the taxpayer's liability
18under this Act to less than zero. This subsection is exempt
19from the provisions of Section 250 of this Act.
20    For purposes of this subsection:
21    "Qualifying pupils" means individuals who (i) are
22residents of the State of Illinois, (ii) are under the age of
2321 at the close of the school year for which a credit is
24sought, and (iii) during the school year for which a credit is
25sought were full-time pupils enrolled in a kindergarten through
26twelfth grade education program at any school, as defined in

 

 

09600SB0737sam001- 84 -LRB096 06805 ASK 44267 a

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

 

 

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

 

 

09600SB0737sam001- 86 -LRB096 06805 ASK 44267 a

1    $100,000 per site.
2        (ii) A credit allowed under this subsection that is
3    unused in the year the credit is earned may be carried
4    forward to each of the 5 taxable years following the year
5    for which the credit is first earned until it is used. This
6    credit shall be applied first to the earliest year for
7    which there is a liability. If there is a credit under this
8    subsection from more than one tax year that is available to
9    offset a liability, the earliest credit arising under this
10    subsection shall be applied first. A credit allowed under
11    this subsection may be sold to a buyer as part of a sale of
12    all or part of the remediation site for which the credit
13    was granted. The purchaser of a remediation site and the
14    tax credit shall succeed to the unused credit and remaining
15    carry-forward period of the seller. To perfect the
16    transfer, the assignor shall record the transfer in the
17    chain of title for the site and provide written notice to
18    the Director of the Illinois Department of Revenue of the
19    assignor's intent to sell the remediation site and the
20    amount of the tax credit to be transferred as a portion of
21    the sale. In no event may a credit be transferred to any
22    taxpayer if the taxpayer or a related party would not be
23    eligible under the provisions of subsection (i).
24        (iii) For purposes of this Section, the term "site"
25    shall have the same meaning as under Section 58.2 of the
26    Environmental Protection Act.

 

 

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1        (iv) This subsection is exempt from the provisions of
2    Section 250.
3(Source: P.A. 95-454, eff. 8-27-07; 96-115, eff. 7-31-09;
496-116, eff. 7-31-09; 96-937, eff. 6-23-10; 96-1000, eff.
57-2-10.)
 
6    Section 90-23. The Property Tax Code is amended by adding
7Section 15-144 as follows:
 
8    (35 ILCS 200/15-144 new)
9    Sec. 15-144. Chicago Casino Development Authority. All
10property owned by the Chicago Casino Development Authority is
11exempt. Any property owned by the Chicago Casino Development
12Authority and leased to an entity that is not exempt shall
13remain exempt so long as it is used for a public purpose.
 
14    Section 90-25. The Joliet Regional Port District Act is
15amended by changing Section 5.1 as follows:
 
16    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
17    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
18any other provision of this Act, the District may not regulate
19the operation, conduct, or navigation of any riverboat gambling
20casino licensed under the Illinois Riverboat Gambling Act, and
21the District may not license, tax, or otherwise levy any
22assessment of any kind on any riverboat gambling casino

 

 

09600SB0737sam001- 88 -LRB096 06805 ASK 44267 a

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

 

 

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1    (c) The books, accounts, records, and files of the limited
2purpose branch's transactions shall be maintained at the
3licensee's licensed location. The licensee shall notify the
4Director of the licensed location at which the books, accounts,
5records, and files shall be maintained.
6    (d) The licensee shall prominently display at the limited
7purpose branch the address and telephone number of the
8licensee's licensed location.
9    (e) No other business shall be conducted at the site of the
10limited purpose branch unless authorized by the Director.
11    (f) The Director shall make and enforce reasonable rules
12for the conduct of a limited purpose branch.
13    (g) A limited purpose branch may not be located within
141,000 feet of a facility operated by an inter-track wagering
15licensee or an organization licensee subject to the Illinois
16Horse Racing Act of 1975, on a riverboat or in a casino subject
17to the Illinois Riverboat Gambling Act, or within 1,000 feet of
18the location at which the riverboat docks or within 1,000 feet
19of a casino.
20(Source: P.A. 90-437, eff. 1-1-98.)
 
21    Section 90-35. The Illinois Horse Racing Act of 1975 is
22amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 15.1,
2318, 19, 20, 24, 26, 27, 28, 28.1, 30, 30.5, 31, 31.1, 32.1, 36,
24and 40 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
2534.3, and 56 as follows:
 

 

 

09600SB0737sam001- 90 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 91 -LRB096 06805 ASK 44267 a

1    Sec. 3.11. "Organization Licensee" means any person
2receiving an organization license from the Board to conduct a
3race meeting or meetings. With respect only to electronic
4gaming, "organization licensee" includes the authorization for
5an electronic gaming license under subsection (a)_of Section 56
6of this Act.
7(Source: P.A. 79-1185.)
 
8    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
9    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
10system of wagering" means a form of wagering on the outcome of
11horse races in which wagers are made in various denominations
12on a horse or horses and all wagers for each race are pooled
13and held by a licensee for distribution in a manner approved by
14the Board. "Pari-mutuel system of wagering" shall not include
15wagering on historic races. Wagers may be placed via any method
16or at any location authorized under this Act.
17(Source: P.A. 96-762, eff. 8-25-09.)
 
18    (230 ILCS 5/3.31 new)
19    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
20receipts" means the gross receipts less winnings paid to
21wagerers.
 
22    (230 ILCS 5/3.32 new)
23    Sec. 3.32. Gross receipts. "Gross receipts" means the total

 

 

09600SB0737sam001- 92 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 93 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 94 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 95 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 96 -LRB096 06805 ASK 44267 a

1at the Illinois State Fair in Sangamon County, and (2) at the
2DuQuoin State Fair in Perry County. The jurisdiction of the
3Board shall also include the power to issue licenses to county
4fairs which are eligible to receive funds pursuant to the
5Agricultural Fair Act, as now or hereafter amended, or their
6agents, authorizing the pari-mutuel system of wagering on horse
7races conducted at the county fairs receiving such licenses.
8Such licenses shall be governed by subsection (n) of this
9Section.
10    Upon application, the Board shall issue a license to the
11Illinois Department of Agriculture to conduct harness and
12Quarter Horse races at the Illinois State Fair and at the
13DuQuoin State Fairgrounds during the scheduled dates of each
14fair. The Board shall not require and the Department of
15Agriculture shall be exempt from the requirements of Sections
1615.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
17(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
18and 25. The Board and the Department of Agriculture may extend
19any or all of these exemptions to any contractor or agent
20engaged by the Department of Agriculture to conduct its race
21meetings when the Board determines that this would best serve
22the public interest and the interest of horse racing.
23    Notwithstanding any provision of law to the contrary, it
24shall be lawful for any licensee to operate pari-mutuel
25wagering or contract with the Department of Agriculture to
26operate pari-mutuel wagering at the DuQuoin State Fairgrounds

 

 

09600SB0737sam001- 97 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 98 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 99 -LRB096 06805 ASK 44267 a

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

 

 

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

 

 

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

 

 

09600SB0737sam001- 102 -LRB096 06805 ASK 44267 a

1the purpose of carrying out its statutory powers and
2responsibilities, then, upon request and payment of fees in
3conformance with the requirements of Section 2605-400 of the
4Department of State Police Law (20 ILCS 2605/2605-400), the
5Department of State Police is authorized to furnish, pursuant
6to positive identification, such information contained in
7State files as is necessary to fulfill the request.
8    (p) To insure the convenience, comfort, and wagering
9accessibility of race track patrons, to provide for the
10maximization of State revenue, and to generate increases in
11purse allotments to the horsemen, the Board shall require any
12licensee to staff the pari-mutuel department with adequate
13personnel.
14(Source: P.A. 91-239, eff. 1-1-00.)
 
15    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
16    Sec. 15. (a) The Board shall, in its discretion, issue
17occupation licenses to horse owners, trainers, harness
18drivers, jockeys, agents, apprentices, grooms, stable foremen,
19exercise persons, veterinarians, valets, blacksmiths,
20concessionaires and others designated by the Board whose work,
21in whole or in part, is conducted upon facilities within the
22State. Such occupation licenses will be obtained prior to the
23persons engaging in their vocation upon such facilities. The
24Board shall not license pari-mutuel clerks, parking
25attendants, security guards and employees of concessionaires.

 

 

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

 

 

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

 

 

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

 

 

09600SB0737sam001- 106 -LRB096 06805 ASK 44267 a

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

 

 

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

 

 

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

 

 

09600SB0737sam001- 109 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 110 -LRB096 06805 ASK 44267 a

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

 

 

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1the Board for an amount equal to $1,000. All applications for
2the issuance of an organization license shall be filed with the
3Board before August 1 of the year prior to the year for which
4application is made and shall be acted upon by the Board at a
5meeting to be held on such date as shall be fixed by the Board
6during the last 15 days of September of such prior year. At
7such meeting, the Board shall announce the award of the racing
8meets, live racing schedule, and designation of host track to
9the applicants and its approval or disapproval of each
10application. No announcement shall be considered binding until
11a formal order is executed by the Board, which shall be
12executed no later than October 15 of that prior year. Absent
13the agreement of the affected organization licensees, the Board
14shall not grant overlapping race meetings to 2 or more tracks
15that are within 100 miles of each other to conduct the
16thoroughbred racing.
17    (e-1) In awarding standardbred racing dates for calendar
18year 2012 and thereafter, the Board shall award at least 310
19racing days, and each organization licensees shall average at
20least 12 races for each racing day awarded. The Board shall
21have the discretion to allocate those racing days among
22organization licensees requesting standardbred race dates.
23Once awarded by the Board, organization licensees awarded
24standardbred dates shall run at least 3,500 races in total
25during that calendar year.
26    (e-2) In awarding racing dates for calendar year 2012 and

 

 

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

 

 

09600SB0737sam001- 113 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 114 -LRB096 06805 ASK 44267 a

1        (8) the extent to which the applicant exceeds or meets
2    other standards for the issuance of an organization license
3    that the Board shall adopt by rule.
4    In granting organization licenses and allocating dates for
5horse race meetings, the Board shall have discretion to
6determine an overall schedule, including required simulcasts
7of Illinois races by host tracks that will, in its judgment, be
8conducive to the best interests of the public and the sport of
9horse racing.
10    (e-10) The Illinois Administrative Procedure Act shall
11apply to administrative procedures of the Board under this Act
12for the granting of an organization license, except that (1)
13notwithstanding the provisions of subsection (b) of Section
1410-40 of the Illinois Administrative Procedure Act regarding
15cross-examination, the Board may prescribe rules limiting the
16right of an applicant or participant in any proceeding to award
17an organization license to conduct cross-examination of
18witnesses at that proceeding where that cross-examination
19would unduly obstruct the timely award of an organization
20license under subsection (e) of Section 20 of this Act; (2) the
21provisions of Section 10-45 of the Illinois Administrative
22Procedure Act regarding proposals for decision are excluded
23under this Act; (3) notwithstanding the provisions of
24subsection (a) of Section 10-60 of the Illinois Administrative
25Procedure Act regarding ex parte communications, the Board may
26prescribe rules allowing ex parte communications with

 

 

09600SB0737sam001- 115 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 116 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 117 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 118 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 119 -LRB096 06805 ASK 44267 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    located in a county with a population in excess of 230,000
2    and that borders the Mississippi River.
3        (9) (Blank).
4        (10) (Blank).
5        (11) (Blank).
6        (12) The Board shall have authority to compel all host
7    tracks to receive the simulcast of any or all races
8    conducted at the Springfield or DuQuoin State fairgrounds
9    and include all such races as part of their simulcast
10    programs.
11        (13) Notwithstanding any other provision of this Act,
12    in the event that the total Illinois pari-mutuel handle on
13    Illinois horse races at all wagering facilities in any
14    calendar year is less than 75% of the total Illinois
15    pari-mutuel handle on Illinois horse races at all such
16    wagering facilities for calendar year 1994, then each
17    wagering facility that has an annual total Illinois
18    pari-mutuel handle on Illinois horse races that is less
19    than 75% of the total Illinois pari-mutuel handle on
20    Illinois horse races at such wagering facility for calendar
21    year 1994, shall be permitted to receive, from any amount
22    otherwise payable to the purse account at the race track
23    with which the wagering facility is affiliated in the
24    succeeding calendar year, an amount equal to 2% of the
25    differential in total Illinois pari-mutuel handle on
26    Illinois horse races at the wagering facility between that

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    licensee of all taxes due under Section 27 or 27.1 and any
2    other monies due and payable under this Act, and (ii)
3    distribution by the licensee, upon presentation of the
4    winning ticket or tickets, of all sums payable to the
5    patrons of pari-mutuel pools.
6        (5) Each license to conduct inter-track wagering and
7    simulcast wagering shall specify the person to whom it is
8    issued, the dates on which such wagering is permitted, and
9    the track or location where the wagering is to be
10    conducted.
11        (6) All wagering under such license is subject to this
12    Act and to the rules and regulations from time to time
13    prescribed by the Board, and every such license issued by
14    the Board shall contain a recital to that effect.
15        (7) An inter-track wagering licensee or inter-track
16    wagering location licensee may accept wagers at the track
17    or location where it is licensed, or as otherwise provided
18    under this Act.
19        (8) Inter-track wagering or simulcast wagering shall
20    not be conducted at any track less than 4 5 miles from a
21    track at which a racing meeting is in progress.
22        (8.1) Inter-track wagering location licensees who
23    derive their licenses from a particular organization
24    licensee shall conduct inter-track wagering and simulcast
25    wagering only at locations which are either within 90 miles
26    of that race track where the particular organization

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09600SB0737sam001- 148 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 149 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 150 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 151 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 152 -LRB096 06805 ASK 44267 a

1        compensation for their services as members but shall be
2        reimbursed for all actual and necessary expenses and
3        disbursements incurred in the performance of their
4        official duties. The remaining 50% of this
5        two-sevenths shall be distributed to county fairs for
6        premiums and rehabilitation as set forth in the
7        Agricultural Fair Act;
8            Four-sevenths to park districts or municipalities
9        that do not have a park district of 500,000 population
10        or less for museum purposes (if an inter-track wagering
11        location licensee is located in such a park district)
12        or to conservation districts for museum purposes (if an
13        inter-track wagering location licensee is located in a
14        municipality that is not included within any park
15        district but is included within a conservation
16        district and is the county seat of a county that (i) is
17        contiguous to the state of Indiana and (ii) has a 1990
18        population of 88,257 according to the United States
19        Bureau of the Census, except that if the conservation
20        district does not maintain a museum, the monies shall
21        be allocated equally between the county and the
22        municipality in which the inter-track wagering
23        location licensee is located for general purposes) or
24        to a municipal recreation board for park purposes (if
25        an inter-track wagering location licensee is located
26        in a municipality that is not included within any park

 

 

09600SB0737sam001- 153 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 154 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 155 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 156 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 157 -LRB096 06805 ASK 44267 a

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

 

 

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

 

 

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

 

 

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1    racing program, those races shall be considered a separate
2    racing day for the purpose of determining the daily handle
3    and computing the privilege or pari-mutuel tax on that
4    daily handle as provided in Sections 27 and 27.1. Such
5    agreements shall be approved by the Board before such
6    wagering may be conducted. In determining whether to grant
7    approval, the Board shall give due consideration to the
8    best interests of the public and of horse racing. The
9    provisions of paragraphs (1), (8), (8.1), and (8.2) of
10    subsection (h) of this Section which are not specified in
11    this paragraph (13) shall not apply to licensed race
12    meetings conducted by the Department of Agriculture at the
13    Illinois State Fair in Sangamon County or the DuQuoin State
14    Fair in Perry County, or to any wagering conducted on those
15    race meetings.
16    (i) Notwithstanding the other provisions of this Act, the
17conduct of wagering at wagering facilities is authorized on all
18days, except as limited by subsection (b) of Section 19 of this
19Act.
20(Source: P.A. 96-762, eff. 8-25-09.)
 
21    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
22    Sec. 27. (a) In addition to the organization license fee
23provided by this Act, until January 1, 2000, a graduated
24privilege tax is hereby imposed for conducting the pari-mutuel
25system of wagering permitted under this Act. Until January 1,

 

 

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12000, except as provided in subsection (g) of Section 27 of
2this Act, all of the breakage of each racing day held by any
3licensee in the State shall be paid to the State. Until January
41, 2000, such daily graduated privilege tax shall be paid by
5the licensee from the amount permitted to be retained under
6this Act. Until January 1, 2000, each day's graduated privilege
7tax, breakage, and Horse Racing Tax Allocation funds shall be
8remitted to the Department of Revenue within 48 hours after the
9close of the racing day upon which it is assessed or within
10such other time as the Board prescribes. The privilege tax
11hereby imposed, until January 1, 2000, shall be a flat tax at
12the rate of 2% of the daily pari-mutuel handle except as
13provided in Section 27.1.
14    In addition, every organization licensee, except as
15provided in Section 27.1 of this Act, which conducts multiple
16wagering shall pay, until January 1, 2000, as a privilege tax
17on multiple wagers an amount equal to 1.25% of all moneys
18wagered each day on such multiple wagers, plus an additional
19amount equal to 3.5% of the amount wagered each day on any
20other multiple wager which involves a single betting interest
21on 3 or more horses. The licensee shall remit the amount of
22such taxes to the Department of Revenue within 48 hours after
23the close of the racing day on which it is assessed or within
24such other time as the Board prescribes.
25    This subsection (a) shall be inoperative and of no force
26and effect on and after January 1, 2000.

 

 

09600SB0737sam001- 162 -LRB096 06805 ASK 44267 a

1    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
2at the rate of 1.5% of the daily pari-mutuel handle is imposed
3at all pari-mutuel wagering facilities and on advance deposit
4wagering from a location other than a wagering facility, except
5as otherwise provided for in this subsection (a-5). In addition
6to the pari-mutuel tax imposed on advance deposit wagering
7pursuant to this subsection (a-5), an additional pari-mutuel
8tax at the rate of 0.25% shall be imposed on advance deposit
9wagering, the amount of which shall not exceed $250,000 in each
10calendar year. The additional 0.25% pari-mutuel tax imposed on
11advance deposit wagering by this amendatory Act of the 96th
12General Assembly shall be deposited into the Quarter Horse
13Purse Fund, which shall be created as a non-appropriated trust
14fund administered by the Board for grants to thoroughbred
15organization licensees for payment of purses for quarter horse
16races conducted by the organization licensee. Thoroughbred
17organization licensees may petition the Board to conduct
18quarter horse racing and receive purse grants from the Quarter
19Horse Purse Fund. The Board shall have complete discretion in
20distributing the Quarter Horse Purse Fund to the petitioning
21organization licensees. Beginning on the effective date of this
22amendatory Act of the 96th General Assembly and until moneys
23deposited pursuant to Section 54 are distributed and received,
24a pari-mutuel tax at the rate of 0.75% of the daily pari-mutuel
25handle is imposed at a pari-mutuel facility whose license is
26derived from a track located in a county that borders the

 

 

09600SB0737sam001- 163 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 164 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 165 -LRB096 06805 ASK 44267 a

1any tax due under this Section shall be guilty of a business
2offense and upon conviction shall be fined not more than $5,000
3in addition to the amount found due as tax under this Section.
4Each day's violation shall constitute a separate offense. All
5fines paid into Court by a licensee hereunder shall be
6transmitted and paid over by the Clerk of the Court to the
7Board.
8    (e) No other license fee, privilege tax, excise tax, or
9racing fee, except as provided in this Act, shall be assessed
10or collected from any such licensee by the State.
11    (f) No other license fee, privilege tax, excise tax or
12racing fee shall be assessed or collected from any such
13licensee by units of local government except as provided in
14paragraph 10.1 of subsection (h) and subsection (f) of Section
1526 of this Act. However, any municipality that has a Board
16licensed horse race meeting at a race track wholly within its
17corporate boundaries or a township that has a Board licensed
18horse race meeting at a race track wholly within the
19unincorporated area of the township may charge a local
20amusement tax not to exceed 10 per admission to such horse
21race meeting by the enactment of an ordinance. However, any
22municipality or county that has a Board licensed inter-track
23wagering location facility wholly within its corporate
24boundaries may each impose an admission fee not to exceed $1.00
25per admission to such inter-track wagering location facility,
26so that a total of not more than $2.00 per admission may be

 

 

09600SB0737sam001- 166 -LRB096 06805 ASK 44267 a

1imposed. Except as provided in subparagraph (g) of Section 27
2of this Act, the inter-track wagering location licensee shall
3collect any and all such fees and within 48 hours remit the
4fees to the Board, which shall, pursuant to rule, cause the
5fees to be distributed to the county or municipality.
6    (g) Notwithstanding any provision in this Act to the
7contrary, if in any calendar year the total taxes and fees from
8wagering on live racing and from inter-track wagering required
9to be collected from licensees and distributed under this Act
10to all State and local governmental authorities exceeds the
11amount of such taxes and fees distributed to each State and
12local governmental authority to which each State and local
13governmental authority was entitled under this Act for calendar
14year 1994, then the first $11 million of that excess amount
15shall be allocated at the earliest possible date for
16distribution as purse money for the succeeding calendar year.
17Upon reaching the 1994 level, and until the excess amount of
18taxes and fees exceeds $11 million, the Board shall direct all
19licensees to cease paying the subject taxes and fees and the
20Board shall direct all licensees to allocate any such excess
21amount for purses as follows:
22        (i) the excess amount shall be initially divided
23    between thoroughbred and standardbred purses based on the
24    thoroughbred's and standardbred's respective percentages
25    of total Illinois live wagering in calendar year 1994;
26        (ii) each thoroughbred and standardbred organization

 

 

09600SB0737sam001- 167 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 168 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 169 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 170 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 171 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 172 -LRB096 06805 ASK 44267 a

1    Act.
2    (k) To the extent that monies paid by the Board to the
3Agricultural Premium Fund are in the opinion of the Governor in
4excess of the amount necessary for the purposes herein stated,
5the Governor shall notify the Comptroller and the State
6Treasurer of such fact, who, upon receipt of such notification,
7shall transfer such excess monies from the Agricultural Premium
8Fund to the General Revenue Fund.
9(Source: P.A. 94-91, Sections 55-135 and 90-10, eff. 7-1-05.)
 
10    (230 ILCS 5/28.1)
11    Sec. 28.1. Payments.
12    (a) Beginning on January 1, 2000, moneys collected by the
13Department of Revenue and the Racing Board pursuant to Section
1426 or Section 27 of this Act shall be deposited into the Horse
15Racing Fund, which is hereby created as a special fund in the
16State Treasury.
17    (b) Appropriations, as approved by the General Assembly,
18may be made from the Horse Racing Fund to the Board to pay the
19salaries of the Board members, secretary, stewards, directors
20of mutuels, veterinarians, representatives, accountants,
21clerks, stenographers, inspectors and other employees of the
22Board, and all expenses of the Board incident to the
23administration of this Act, including, but not limited to, all
24expenses and salaries incident to the taking of saliva and
25urine samples in accordance with the rules and regulations of

 

 

09600SB0737sam001- 173 -LRB096 06805 ASK 44267 a

1the Board.
2    (c) Beginning on January 1, 2000, the Board shall transfer
3the remainder of the funds generated pursuant to Sections 26
4and 27 from the Horse Racing Fund into the General Revenue
5Fund.
6    In the event that in any fiscal year, the amount of total
7funds in the Horse Racing Fund is insufficient to meet the
8annual operating expenses of the Board, as appropriated by the
9General Assembly for that fiscal year, the Board shall invoice
10the organization licensees for the amount of the deficit. The
11amount of the invoice shall be allocated in a proportionate
12amount of pari-mutuel wagering handled by the organization
13licensee in the year preceding assessment and divided by the
14total pari-mutuel wagering handled by all Illinois
15organization licensees. The payments shall be made 50% from the
16organization licensee's account and 50% from the organization
17licensee's purse account.
18    (d) Beginning January 1, 2000, payments to all programs in
19existence on the effective date of this amendatory Act of 1999
20that are identified in Sections 26(c), 26(f), 26(h)(11)(C), and
2128, subsections (a), (b), (c), (d), (e), (f), (g), and (h) of
22Section 30, and subsections (a), (b), (c), (d), (e), (f), (g),
23and (h) of Section 31 shall be made from the General Revenue
24Fund at the funding levels determined by amounts paid under
25this Act in calendar year 1998. Beginning on the effective date
26of this amendatory Act of the 93rd General Assembly, payments

 

 

09600SB0737sam001- 174 -LRB096 06805 ASK 44267 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09600SB0737sam001- 181 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 182 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 183 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 184 -LRB096 06805 ASK 44267 a

1    Such payments shall not reduce any award to the owners of a
2horse or reduce the taxes payable under this Act. Upon
3completion of its racing meet, each organization licensee shall
4deliver to the organization representing thoroughbred breeders
5and owners whose representative serves on the Illinois
6Thoroughbred Breeders Fund Advisory Board a listing of all the
7Illinois foaled and the Illinois conceived and foaled horses
8which won breeders' awards and the amount of such breeders'
9awards in accordance with the provisions of this Act. Such
10payments shall be delivered by the organization licensee within
1130 days of the end of each race meeting.
12    (k) The term "breeder", as used herein, means the owner of
13the mare at the time the foal is dropped. An "Illinois foaled
14horse" is a foal dropped by a mare which enters this State on
15or before December 1, in the year in which the horse is bred,
16provided the mare remains continuously in this State until its
17foal is born. An "Illinois foaled horse" also means a foal born
18of a mare in the same year as the mare enters this State on or
19before March 1, and remains in this State at least 30 days
20after foaling, is bred back during the season of the foaling to
21an Illinois Registered Stallion (unless a veterinarian
22certifies that the mare should not be bred for health reasons),
23and is not bred to a stallion standing in any other state
24during the season of foaling. An "Illinois foaled horse" also
25means a foal born in Illinois of a mare purchased at public
26auction subsequent to the mare entering this State on or before

 

 

09600SB0737sam001- 185 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 186 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 187 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 188 -LRB096 06805 ASK 44267 a

1(Source: P.A. 91-40, eff. 6-25-99.)
 
2    (230 ILCS 5/30.5)
3    Sec. 30.5. Illinois Quarter Horse Breeders Fund.
4    (a) The General Assembly declares that it is the policy of
5this State to encourage the breeding of racing quarter horses
6in this State and the ownership of such horses by residents of
7this State in order to provide for sufficient numbers of high
8quality racing quarter horses 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) There is hereby created a non-appropriated trust
14special fund in the State Treasury to be known as the Illinois
15Racing Quarter Horse Breeders Fund, which is held separate and
16apart from State moneys. Except as provided in subsection (g)
17of Section 27 of this Act, 8.5% of all the moneys received by
18the State as pari-mutuel taxes on quarter horse racing shall be
19paid into the Illinois Racing Quarter Horse Breeders Fund. The
20Illinois Racing Quarter Horse Breeders Fund shall not be
21subject to administrative charges or charge backs, including,
22but not limited to, those authorized under Section 8h of the
23State Finance Act.
24    (c) The Illinois Racing Quarter Horse Breeders Fund shall
25be administered by the Department of Agriculture with the

 

 

09600SB0737sam001- 189 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 190 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 191 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 192 -LRB096 06805 ASK 44267 a

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

 

 

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1the provisions of this Section of this Act.
2    (b) Each organization licensee conducting a harness racing
3meeting pursuant to this Act shall provide for at least two
4races each race program limited to Illinois conceived and
5foaled horses. A minimum of 6 races shall be conducted each
6week limited to Illinois conceived and foaled horses. No horses
7shall be permitted to start in such races unless duly
8registered under the rules of the Department of Agriculture.
9    (b-5) Organization licensees, not including the Illinois
10State Fair or the DuQuoin State Fair, shall provide stake races
11and early closer races for Illinois conceived and foaled horses
12so that purses distributed for such races shall be no less than
1317% of total purses distributed for harness racing in that
14calendar year in addition to any stakes payments and starting
15fees contributed by horse owners.
16    (b-10) Each organization licensee conducting a harness
17racing meeting pursuant to this Act shall provide an owner
18award to be paid from the purse account equal to 25% of the
19amount earned by Illinois conceived and foaled horses in races
20that are not restricted to Illinois conceived and foaled
21horses. The owner awards shall not be paid on races below the
22$10,000 claiming class.
23    (c) Conditions of races under subsection (b) shall be
24commensurate with past performance, quality and class of
25Illinois conceived and foaled horses available. If, however,
26sufficient competition cannot be had among horses of that class

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09600SB0737sam001- 200 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 201 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 202 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 203 -LRB096 06805 ASK 44267 a

1(iii) within thirty days of its receipt of such notice, each
2organization licensee shall remit the assessed contribution to
3the Board. If an organization licensee wilfully fails to so
4remit the contribution, the Board may revoke its license to
5conduct horse racing.
6    (b) No later than October 1st of each year, any qualified
7charitable organization seeking an allotment of contributed
8funds shall submit to the Board an application for those funds,
9using the Board's approved form. No later than December 31st of
10each year, the Board shall distribute all such amounts
11collected that year to such charitable organization
12applicants.
13(Source: P.A. 87-110.)
 
14    (230 ILCS 5/32.1)
15    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
16real estate equalization.
17    (a) In order to encourage new investment in Illinois
18racetrack facilities and mitigate differing real estate tax
19burdens among all racetracks, the licensees affiliated or
20associated with each racetrack that has been awarded live
21racing dates in the current year shall receive an immediate
22pari-mutuel tax credit in an amount equal to the greater of (i)
2350% of the amount of the real estate taxes paid in the prior
24year attributable to that racetrack, or (ii) the amount by
25which the real estate taxes paid in the prior year attributable

 

 

09600SB0737sam001- 204 -LRB096 06805 ASK 44267 a

1to that racetrack exceeds 60% of the average real estate taxes
2paid in the prior year for all racetracks awarded live horse
3racing meets in the current year.
4    Each year, regardless of whether the organization licensee
5conducted live racing in the year of certification, the Board
6shall certify in writing, prior to December 31, the real estate
7taxes paid in that year for each racetrack and the amount of
8the pari-mutuel tax credit that each organization licensee,
9intertrack wagering licensee, and intertrack wagering location
10licensee that derives its license from such racetrack is
11entitled in the succeeding calendar year. The real estate taxes
12considered under this Section for any racetrack shall be those
13taxes on the real estate parcels and related facilities used to
14conduct a horse race meeting and inter-track wagering at such
15racetrack under this Act. In no event shall the amount of the
16tax credit under this Section exceed the amount of pari-mutuel
17taxes otherwise calculated under this Act. The amount of the
18tax credit under this Section shall be retained by each
19licensee and shall not be subject to any reallocation or
20further distribution under this Act. The Board may promulgate
21emergency rules to implement this Section.
22    (b) Beginning on January 1 following the first 12-month
23period that an organization licensee begins conducting
24electronic gaming operations pursuant to Section 56 of this
25Act, an organization licensee shall be ineligible to receive
26the pari-mutuel tax credit provided in subsection (a).

 

 

09600SB0737sam001- 205 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 206 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 207 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 208 -LRB096 06805 ASK 44267 a

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

 

 

09600SB0737sam001- 209 -LRB096 06805 ASK 44267 a

1Breeders Fund.
2(Source: P.A. 87-397.)
 
3    (230 ILCS 5/56 new)
4    Sec. 56. Electronic gaming.
5    (a) A person, firm, or corporation having operating control
6of a race track may apply to the Gaming Board for an electronic
7gaming license. An electronic gaming license shall authorize
8its holder to conduct electronic gaming on the grounds of the
9race track controlled by the licensee's race track. Only one
10electronic gaming license may be awarded for any race track.
11Each license shall specify the number of gaming positions that
12its holder may operate.
13    An electronic gaming licensee may not permit persons under
1421 years of age to be present in its electronic gaming
15facility, but the licensee may accept wagers on live racing and
16inter-track wagers at its electronic gaming facility.
17    (b) The adjusted gross receipts by an electronic gaming
18licensee from electronic gaming remaining after the payment of
19taxes under Section 13 of the Illinois Gambling Act shall be
20distributed as follows:
21        (1) Amounts shall be paid to the purse account at the
22    track at which the organization licensee is conducting
23    racing equal to the following:
24            12.75% of annual adjusted gross receipts up to and
25        including $75,000,000;

 

 

09600SB0737sam001- 210 -LRB096 06805 ASK 44267 a

1            20% of annual adjusted gross receipts in excess of
2        $75,000,000 but not exceeding $100,000,000;
3            26.5% of annual adjusted gross receipts in excess
4        of $100,000,000 but not exceeding $125,000,000; and
5            20.5% of annual adjusted gross receipts in excess
6        of $125,000,000.
7        (2) The remainder shall be retained by the electronic
8    gaming licensee.
9    (c) Electronic gaming receipts placed into the purse
10account of an organization licensee racing thoroughbred horses
11shall be used for purses, for health care services and worker's
12compensation for racing industry workers, for equine research,
13for programs to care for and transition injured and retired
14thoroughbred horses that race at the race track, or for horse
15ownership promotion, in accordance with the agreement of the
16horsemen's association representing the largest number of
17owners or trainers who race at that organization licensee's
18race meeting. Annually, from the purse account of an
19organization licensee racing thoroughbred horses, an amount
20equal to 12% of the electronic gaming receipts placed into the
21purse accounts shall be paid to the Illinois Thoroughbred
22Breeders Fund and shall be used for owner awards; a stallion
23program pursuant to paragraph (3) of subsection (g) of Section
2430 of this Act; and Illinois conceived and foaled stakes races
25pursuant to paragraph (2) of subsection (g) of Section 30 of
26this Act, as specifically designated by the horsemen's

 

 

09600SB0737sam001- 211 -LRB096 06805 ASK 44267 a

1association representing the largest number of owners or
2trainers who race at the organization licensee's race meeting.
3Annually, from the purse account of an organization licensee
4conducting thoroughbred races at a race track in Madison
5County, an amount equal to 1% of the electronic gaming receipts
6distributed to purses per subsection (b) of this Section 56
7shall be paid to Southern Illinois University Department of
8Animal Sciences for equine research and education, an amount
9equal to 0.33 1/3% of the electronic gaming receipts shall be
10used to operate laundry facilities for backstretch workers at
11that race track, and an amount equal to 0.33 1/3% of the
12electronic gaming receipts shall be paid to programs to care
13for injured and unwanted horses that race at that race track.
14    Annually, from the purse account of organization licensees
15conducting thoroughbred races at race tracks in Cook County,
16$100,000 shall be paid for division and equal distribution to
17each Illinois public university system engaged in equine
18research and education on or before the effective date of this
19amendatory Act of the 96th General Assembly for equine research
20and education.
21    (d) Annually, from the purse account of an organization
22licensee racing standardbred horses, an amount equal to 15% of
23the electronic gaming receipts placed into that purse account
24shall be paid to the Illinois Colt Stakes Purse Distribution
25Fund. Moneys deposited into the Illinois Colt Stakes Purse
26Distribution Fund shall be used for standardbred racing as

 

 

09600SB0737sam001- 212 -LRB096 06805 ASK 44267 a

1authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
2subsection (g) of Section 31 of this Act and for bonus awards
3as authorized under paragraph 6 of subsection (j) of Section 31
4of this Act.
5    (e) As a requirement for continued eligibility to conduct
6electronic gaming, each organization licensee must promote
7live racing and horse ownership through marketing and
8promotional efforts. To meet this requirement, all
9organization licensees operating at each race track facility
10must collectively expend t