100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB2498

Introduced , by Rep. Chad Hays

SYNOPSIS AS INTRODUCED:

See Index

Creates the Chicago Casino Development Authority Act. Provides for the creation of the Chicago Casino Development Authority, whose duties include promotion and maintenance of a casino. Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming at race tracks (and makes conforming changes in various Acts). Further amends the Illinois Horse Racing Act of 1975. Makes various changes concerning Board members. Contains provisions concerning testing of horses at county fairs and standardbred horses. Provides that the Illinois Racing Board shall submit a report to the General Assembly on or before December 31, 2018 that examines the feasibility of conducting electronic gaming at the Illinois State Fairgrounds. Further amends the Riverboat Gambling Act. Changes the short title to the Illinois Gambling Act and changes corresponding references to the Act. Adds additional owners licenses, one of which authorizes the conduct of casino gambling in the City of Chicago. Makes changes in provisions concerning the admission tax and privilege tax. Amends the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, and the Video Gaming Act to prohibit political contributions from certain licensees. Makes other changes. Contains a severability provision. Effective immediately.

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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning gaming.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 ARTICLE 1.

5 Section 1-1. Short title. This Article may be cited as the

6 Chicago Casino Development Authority Act. References in this

7 Article to "this Act" mean this Article.

8 Section 1-2. Legislative intent.

9 (a) This Act is intended to benefit the people of the City

10 of Chicago and the State of Illinois by assisting economic

11 development and promoting tourism and by increasing the amount

12 of revenues available to the City and the State to assist and

13 support education.

14 (b) While authorization of casino gambling in Chicago will

15 enhance investment, development, and tourism in Illinois, it is

16 recognized that it will do so successfully only if public

17 confidence and trust in the credibility and integrity of the

18 gambling operations and the regulatory process is maintained.

19 Therefore, the provisions of this Act are designed to allow the

20 Illinois Gaming Board to strictly regulate the facilities,

21 persons, associations, and practices related to gambling

22 operations pursuant to the police powers of the State,

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1 including comprehensive law enforcement supervision.

2 Consistent with the Gaming Board's authority, the Gaming Board

3 alone shall regulate any Chicago casino, just as it now

4 regulates every other casino in Illinois.

5 Section 1-5. Definitions. As used in this Act:

6 "Authority" means the Chicago Casino Development Authority

7 created by this Act.

8 "Casino" means one temporary land-based or water-based

9 facility and one permanent land-based or water-based facility

10 and airport gaming locations pursuant to Section 1-67 of this

11 Act at which lawful gambling is authorized and licensed as

12 provided in the Illinois Gambling Act.

13 "Casino Board" means the board appointed pursuant to this

14 Act to govern and control the Authority.

15 "Casino management contract" means a legally binding

16 agreement between the Authority and a casino operator licensee

17 to operate or manage a casino.

18 "Casino operator licensee" means any person or entity

19 selected by the Authority and approved and licensed by the

20 Gaming Board to manage and operate a casino within the City of

21 Chicago pursuant to a casino management contract.

22 "City" means the City of Chicago.

23 "Entity" means a corporation, joint venture, partnership,

24 limited liability company, trust, or unincorporated

25 association.

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1 "Executive director" means the person appointed by the

2 Casino Board to oversee the daily operations of the Authority.

3 "Gaming Board" means the Illinois Gaming Board created by

4 the Illinois Gambling Act.

5 "Mayor" means the Mayor of the City.

6 Section 1-12. Creation of the Authority. There is hereby

7 created a political subdivision, unit of local government with

8 only the powers authorized by law, body politic, and municipal

9 corporation, by the name and style of the Chicago Casino

10 Development Authority.

11 Section 1-13. Duties of the Authority. It shall be the duty

12 of the Authority, as an owners licensee under the Illinois

13 Gambling Act, to promote and maintain a casino in the City. The

14 Authority shall own, acquire, construct, lease, equip, and

15 maintain grounds, buildings, and facilities for that purpose.

16 However, the Authority shall contract with a casino operator

17 licensee to manage and operate the casino and in no event shall

18 the Authority or City manage or operate the casino. The

19 Authority may contract pursuant to the procedures set forth in

20 Section 1-115 with other third parties in order to fulfill its

21 purpose. The Authority is responsible for the payment of any

22 fees required of a casino operator under subsection (a) of

23 Section 7.9 of the Illinois Gambling Act if the casino operator

24 licensee is late in paying any such fees. The Authority is

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1 granted all rights and powers necessary to perform such duties.

2 Subject to the provisions of this Act, the Authority and casino

3 operator licensee are subject to the Illinois Gambling Act and

4 all of the rules of the Gaming Board, which shall be applied to

5 the Authority and the casino operator licensee in a manner

6 consistent with that of other owners licensees under the

7 Illinois Gambling Act. Nothing in this Act shall confer

8 regulatory authority on the Chicago Casino Development

9 Authority. The Illinois Gaming Board shall have exclusive

10 regulatory authority over all gambling operations governed by

11 this Act.

12 Section 1-15. Casino Board.

13 (a) The governing and administrative powers of the

14 Authority shall be vested in a body known as the Chicago Casino

15 Development Board. The Casino Board shall consist of 5 members

16 appointed by the Mayor. One of these members shall be

17 designated by the Mayor to serve as chairperson. All of the

18 members appointed by the Mayor shall be residents of the City.

19 Each Casino Board appointee shall be subject to a

20 preliminary background investigation completed by the Gaming

21 Board within 30 days after the appointee's submission of his or

22 her application to the Gaming Board. If the Gaming Board

23 determines that there is a substantial likelihood that it will

24 not find the appointee to be suitable to serve on the Casino

25 Board (applying the same standards for suitability to the

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1 appointee as the Gaming Board would apply to an owners licensee

2 key person under the Gaming Board's adopted rules), then the

3 Gaming Board shall provide a written notice of such

4 determination to the appointee and the Corporation Counsel of

5 the City. The Mayor may then appoint a new candidate. If no

6 such notice is delivered with respect to a particular

7 appointee, then commencing on the 31st day following the date

8 of the appointee's submission of his or her application to the

9 Gaming Board, the appointee shall be deemed an acting member of

10 the Casino Board and shall participate as a Casino Board

11 member.

12 Each appointee shall be subject to a full background

13 investigation and final approval by the Gaming Board prior to

14 the opening of the casino. The Gaming Board shall complete its

15 full background investigation of the Casino Board appointee

16 within 3 months after the date of the appointee's submission of

17 his or her application to the Gaming Board. If the Gaming Board

18 does not complete its background investigation within the

19 3-month period, then the Gaming Board shall give a written

20 explanation to the appointee, as well as the Mayor, the

21 Governor, the President of the Senate, and the Speaker of the

22 House of Representatives, as to why it has not reached a final

23 determination and set forth a reasonable time when such

24 determination shall be made.

25 (b) Casino Board members shall receive $300 for each day

26 the Authority meets and shall be entitled to reimbursement of

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1 reasonable expenses incurred in the performance of their

2 official duties. A Casino Board member who serves in the office

3 of secretary-treasurer may also receive compensation for

4 services provided as that officer.

5 Section 1-20. Terms of appointments; resignation and

6 removal.

7 (a) The Mayor shall appoint 2 members of the Casino Board

8 for an initial term expiring July 1 of the year following final

9 approval by the Gaming Board, 2 members for an initial term

10 expiring July 1 three years following final approval by the

11 Gaming Board, and one member for an initial term expiring July

12 1 five years following final approval by the Gaming Board.

13 (b) All successors shall be appointed by the Mayor to hold

14 office for a term of 5 years from the first day of July of the

15 year in which they are appointed, except in the case of an

16 appointment to fill a vacancy. Each member, including the

17 chairperson, shall hold office until the expiration of his or

18 her term and until his or her successor is appointed and

19 qualified. Nothing shall preclude a member from serving

20 consecutive terms. Any member may resign from office, to take

21 effect when a successor has been appointed and qualified. A

22 vacancy in office shall occur in the case of a member's death

23 or indictment, conviction, or plea of guilty to a felony. A

24 vacancy shall be filled for the unexpired term by the Mayor

25 subject to the approval of the Gaming Board as provided in this

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1 Section.

2 (c) Members of the Casino Board shall serve at the pleasure

3 of the Mayor. The Mayor or the Gaming Board may remove any

4 member of the Casino Board upon a finding of incompetence,

5 neglect of duty, or misfeasance or malfeasance in office or for

6 a violation of this Act. The Gaming Board may remove any member

7 of the Casino Board for any violation of the Illinois Gambling

8 Act or the rules and regulations of the Gaming Board.

9 (d) No member of the Casino Board shall engage in any

10 political activity. For the purpose of this Section, "political

11 activity" means any activity in support of or in connection

12 with any campaign for federal, State, or local elective office

13 or any political organization, but does not include activities

14 (i) relating to the support or opposition of any executive,

15 legislative, or administrative action, as those terms are

16 defined in Section 2 of the Lobbyist Registration Act, (ii)

17 relating to collective bargaining, or (iii) that are otherwise

18 in furtherance of the person's official duties or governmental

19 and public service functions.

20 Section 1-25. Organization of Casino Board; meetings.

21 After appointment by the Mayor, the Casino Board shall organize

22 for the transaction of business, provided that the Casino Board

23 shall not take any formal action until after the Gaming Board

24 has completed its preliminary background investigation of at

25 least a quorum of the Casino Board as provided in subsection

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1 (a) of Section 1-15. The Casino Board shall prescribe the time

2 and place for meetings, the manner in which special meetings

3 may be called, and the notice that must be given to members.

4 All actions and meetings of the Casino Board shall be subject

5 to the provisions of the Open Meetings Act. Three members of

6 the Casino Board shall constitute a quorum. All substantive

7 action of the Casino Board shall be by resolution with an

8 affirmative vote of a majority of the members.

9 Section 1-30. Executive director; officers.

10 (a) The Casino Board shall appoint an executive director,

11 who shall be the chief executive officer of the Authority.

12 The executive director shall be subject to a preliminary

13 background investigation to be completed by the Gaming Board

14 within 30 days after the executive director's submission of his

15 or her application to the Gaming Board. If the Gaming Board

16 determines that there is a substantial likelihood that it will

17 not find the executive director to be suitable to serve in that

18 position (applying the same standards for suitability as the

19 Gaming Board would apply to an owners licensee key person under

20 the Gaming Board's adopted rules), then the Gaming Board shall

21 provide a written notice of such determination to the appointee

22 and the Corporation Counsel of the City. The Casino Board may

23 then appoint a new executive director. If no such notice is

24 delivered, then commencing on the 31st day following the date

25 of the executive director's submission of his or her

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1 application to the Gaming Board, the executive director shall

2 commence all duties as the acting executive director of the

3 Authority.

4 The executive director shall be subject to a full

5 background investigation and final approval by the Gaming Board

6 prior to the opening of the casino. The Gaming Board shall

7 complete its full background investigation of the executive

8 director within 3 months after the date of the executive

9 director's submission of his or her application to the Gaming

10 Board. If the Gaming Board does not complete its background

11 investigation within the 3-month period, then the Gaming Board

12 shall give a written explanation to the appointee, as well as

13 the Mayor, the Governor, the President of the Senate, and the

14 Speaker of the House of Representatives, as to why it has not

15 reached a final determination and set forth a reasonable time

16 when such determination shall be made.

17 (b) The Casino Board shall fix the compensation of the

18 executive director. Subject to the general control of the

19 Casino Board, the executive director shall be responsible for

20 the management of the business, properties, and employees of

21 the Authority. The executive director shall direct the

22 enforcement of all resolutions, rules, and regulations of the

23 Casino Board, and shall perform such other duties as may be

24 prescribed from time to time by the Casino Board. All employees

25 and independent contractors, consultants, engineers,

26 architects, accountants, attorneys, financial experts,

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1 construction experts and personnel, superintendents, managers,

2 and other personnel appointed or employed pursuant to this Act

3 shall report to the executive director. In addition to any

4 other duties set forth in this Act, the executive director

5 shall do or shall delegate to an employee or agent of the

6 Authority to do all of the following:

7 (1) Direct and supervise the administrative affairs

8 and activities of the Authority in accordance with its

9 rules, regulations, and policies.

10 (2) Attend meetings of the Casino Board.

11 (3) Keep minutes of all proceedings of the Casino

12 Board.

13 (4) Approve all accounts for salaries, per diem

14 payments, and allowable expenses of the Casino Board and

15 its employees and consultants.

16 (5) Report and make recommendations to the Casino Board

17 concerning the terms and conditions of any casino

18 management contract.

19 (6) Perform any other duty that the Casino Board

20 requires for carrying out the provisions of this Act.

21 (7) Devote his or her full time to the duties of the

22 office and not hold any other office or employment.

23 (c) The Casino Board may select a secretary-treasurer and

24 other officers to hold office at the pleasure of the Casino

25 Board. The Casino Board shall fix the duties of such officers.

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1 Section 1-31. General rights and powers of the Authority.

2 (a) In addition to the duties and powers set forth in this

3 Act, the Authority shall have the following rights and powers:

4 (1) Adopt and alter an official seal.

5 (2) Establish and change its fiscal year.

6 (3) Sue and be sued, plead and be impleaded, all in its

7 own name, and agree to binding arbitration of any dispute

8 to which it is a party.

9 (4) Adopt, amend, and repeal bylaws, rules, and

10 regulations consistent with the furtherance of the powers

11 and duties provided for.

12 (5) Maintain its principal office within the City and

13 such other offices as the Casino Board may designate.

14 (6) Select locations in the City for a temporary and a

15 permanent casino.

16 (7) Subject to the bidding procedures of Section 1-115

17 of this Act, retain or employ, either as regular employees

18 or independent contractors, consultants, engineers,

19 architects, accountants, attorneys, financial experts,

20 construction experts and personnel, superintendents,

21 managers and other professional personnel, and such other

22 personnel as may be necessary in the judgment of the Casino

23 Board, and fix their compensation; however, employees of

24 the Authority shall be hired pursuant to and in accordance

25 with the rules and policies the Authority may adopt.

26 (8) Pursuant to Section 1-115 of this Act, own,

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1 acquire, construct, equip, lease, operate, manage, and

2 maintain grounds, buildings, and facilities to carry out

3 its corporate purposes and duties.

4 (9) Pursuant to Section 1-115, and subject to the

5 oversight, review, and approval of the Gaming Board, enter

6 into, revoke, and modify contracts in accordance with the

7 rules of the Gaming Board as consistently applied to all

8 owners licensees under the Illinois Gambling Act, provided

9 that the Authority may enter into contracts for the design,

10 construction, and outfitting of a temporary casino prior to

11 the Gaming Board's final approval of the Authority's

12 executive director and the members of the Casino Board and

13 prior to the Gaming Board's issuance of the Authority's

14 owners license. Provided further that the entities

15 selected by the Authority for the design, construction, and

16 outfitting of the temporary casino shall be subject to a

17 preliminary background investigation to be completed by

18 the Gaming Board within 30 days after the Gaming Board is

19 provided the identities of the entities. If the Gaming

20 Board determines that there is a substantial likelihood

21 that the entities are not suitable or acceptable to perform

22 their respective functions, then the Gaming Board shall

23 immediately provide notice of that determination to the

24 Authority. If no such notice is delivered, then, commencing

25 on the 31st day following the date on which the information

26 identifying such entities is provided to the Gaming Board,

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1 such entities shall be permitted to commence the services

2 contemplated for the design, construction, and outfitting

3 of the temporary casino. In no event, however, shall the

4 Authority open a casino until after the Gaming Board has

5 finally approved the Authority's executive director and

6 the members of the Casino Board and the Gaming Board has

7 issued the Authority's owners license and the casino

8 operator's casino operator license.

9 (10) Enter into a casino management contract subject to

10 the provisions of Section 1-45 of this Act.

11 (11) Negotiate and enter into intergovernmental

12 agreements with the State and its agencies, the City, and

13 other units of local government, in furtherance of the

14 powers and duties of the Casino Board.

15 (12) Receive and disburse funds for its own corporate

16 purposes or as otherwise specified in this Act.

17 (13) Borrow money from any source, public or private,

18 for any corporate purpose, including, without limitation,

19 working capital for its operations, reserve funds, or

20 payment of interest, and to mortgage, pledge, or otherwise

21 encumber the property or funds of the Authority and to

22 contract with or engage the services of any person in

23 connection with any financing, including financial

24 institutions, issuers of letters of credit, or insurers and

25 enter into reimbursement agreements with this person or

26 entity which may be secured as if money were borrowed from

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1 the person or entity.

2 (14) Issue bonds as provided for under this Act.

3 (15) Receive and accept from any source, private or

4 public, contributions, gifts, or grants of money or

5 property to the Authority.

6 (16) Provide for the insurance of any property,

7 operations, officers, members, agents, or employees of the

8 Authority against any risk or hazard, to self-insure or

9 participate in joint self-insurance pools or entities to

10 insure against such risk or hazard, and to provide for the

11 indemnification of its officers, members, employees,

12 contractors, or agents against any and all risks.

13 (17) Exercise all the corporate powers granted

14 Illinois corporations under the Business Corporation Act

15 of 1983, except to the extent that powers are inconsistent

16 with those of a body politic and municipal corporation.

17 (18) Do all things necessary or convenient to carry out

18 the powers granted by this Act.

19 (b) The Casino Board shall comply with all applicable legal

20 requirements imposed on other owners licensees to conduct all

21 background investigations required under the Illinois Gambling

22 Act and the rules of the Gaming Board. This requirement shall

23 also extend to senior legal, financial, and administrative

24 staff of the Authority.

25 Section 1-32. Ethical conduct.

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1 (a) Casino Board members and employees of the Authority

2 must carry out their duties and responsibilities in such a

3 manner as to promote and preserve public trust and confidence

4 in the integrity and conduct of gaming.

5 (b) Except as may be required in the conduct of official

6 duties, Casino Board members and employees of the Authority

7 shall not engage in gambling on any riverboat, in any casino,

8 or in an electronic gaming facility licensed by the Illinois

9 Gaming Board or engage in legalized gambling in any

10 establishment identified by Gaming Board action that, in the

11 judgment of the Gaming Board, could represent a potential for a

12 conflict of interest.

13 (c) A Casino Board member or employee of the Authority

14 shall not use or attempt to use his or her official position to

15 secure or attempt to secure any privilege, advantage, favor, or

16 influence for himself or herself or others.

17 (d) Casino Board members and employees of the Authority

18 shall not hold or pursue employment, office, position,

19 business, or occupation that may conflict with his or her

20 official duties. Employees may engage in other gainful

21 employment so long as that employment does not interfere or

22 conflict with their duties. Such employment must be disclosed

23 to the executive director and approved by the Casino Board.

24 (e) Casino Board members, employees of the Authority, and

25 elected officials and employees of the City may not engage in

26 employment, communications, or any activity identified by the

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1 Casino Board or Gaming Board that, in the judgment of either

2 entity, could represent the potential for or the appearance of

3 a conflict of interest.

4 (f) Casino Board members, employees of the Authority, and

5 elected officials and employees of the City may not have a

6 financial interest, directly or indirectly, in his or her own

7 name or in the name of any other person, partnership,

8 association, trust, corporation, or other entity in any

9 contract or subcontract for the performance of any work for the

10 Authority. This prohibition shall extend to the holding or

11 acquisition of an interest in any entity identified by the

12 Casino Board or the Gaming Board that, in the judgment of

13 either entity, could represent the potential for or the

14 appearance of a financial interest. The holding or acquisition

15 of an interest in such entities through an indirect means, such

16 as through a mutual fund, shall not be prohibited, except that

17 the Gaming Board may identify specific investments or funds

18 that, in its judgment, are so influenced by gaming holdings as

19 to represent the potential for or the appearance of a conflict

20 of interest.

21 (g) Casino Board members, employees of the Authority, and

22 elected officials and employees of the City may not accept any

23 gift, gratuity, service, compensation, travel, lodging, or

24 thing of value, with the exception of unsolicited items of an

25 incidental nature, from any person, corporation, or entity

26 doing business with the Authority.

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1 (h) No Casino Board member, employee of the Authority, or

2 elected official or employee of the City may, during employment

3 or within a period of 2 years immediately after termination of

4 employment, knowingly accept employment or receive

5 compensation or fees for services from a person or entity, or

6 its parent or affiliate, that has engaged in business with the

7 Authority that resulted in contracts with an aggregate value of

8 at least $25,000 or if that Casino Board member or employee has

9 made a decision that directly applied to the person or entity,

10 or its parent or affiliate.

11 (i) A spouse, child, or parent of a Casino Board member,

12 employee of the Authority, or elected official or employee of

13 the City may not have a financial interest, directly or

14 indirectly, in his or her own name or in the name of any other

15 person, partnership, association, trust, corporation, or other

16 entity in any contract or subcontract for the performance of

17 any work for the Authority. This prohibition shall extend to

18 the holding or acquisition of an interest in any entity

19 identified by the Casino Board or Gaming Board that, in the

20 judgment of either entity, could represent the potential for or

21 the appearance of a conflict of interest. The holding or

22 acquisition of an interest in such entities through an indirect

23 means, such as through a mutual fund, shall not be prohibited,

24 except that the Gaming Board may identify specific investments

25 or funds that, in its judgment, are so influenced by gaming

26 holdings as to represent the potential for or the appearance of

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1 a conflict of interest.

2 (j) A spouse, child, or parent of a Casino Board member,

3 employee of the Authority, or elected official or employee of

4 the City may not accept any gift, gratuity, service,

5 compensation, travel, lodging, or thing of value, with the

6 exception of unsolicited items of an incidental nature, from

7 any person, corporation, or entity doing business with the

8 Authority.

9 (k) A spouse, child, or parent of a Casino Board member,

10 employee of the Authority, or elected official or employee of

11 the City may not, while the person is a Board member or

12 employee of the spouse or within a period of 2 years

13 immediately after termination of employment, knowingly accept

14 employment or receive compensation or fees for services from a

15 person or entity, or its parent or affiliate, that has engaged

16 in business with the Authority that resulted in contracts with

17 an aggregate value of at least $25,000 or if that Casino Board

18 member, employee, or elected official or employee of the City

19 has made a decision that directly applied to the person or

20 entity, or its parent or affiliate.

21 (l) No Casino Board member, employee of the Authority, or

22 elected official or employee of the City may attempt, in any

23 way, to influence any person or entity doing business with the

24 Authority or any officer, agent, or employee thereof to hire or

25 contract with any person or entity for any compensated work.

26 (m) No Casino Board member, employee of the Authority, or

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1 elected official or employee of the City shall use or attempt

2 to use his or her official position to secure, or attempt to

3 secure, any privilege, advantage, favor, or influence for

4 himself or herself or others. No Casino Board member, employee

5 of the Authority, or elected official or employee of the City

6 shall, within one year immediately preceding appointment by the

7 Mayor or employment, have been employed or received

8 compensation or fees for services from a person or entity, or

9 its parent or affiliate, that has engaged in business with the

10 Casino Board, a licensee under this Act, or a licensee under

11 the Illinois Gambling Act.

12 (n) Any communication between an elected official of the

13 City and any applicant for or party to a casino management

14 contract with the Authority, or an officer, director, or

15 employee thereof, concerning any matter relating in any way to

16 gaming or the Authority shall be disclosed to the Casino Board

17 and the Gaming Board. Such disclosure shall be in writing by

18 the official within 30 days after the communication and shall

19 be filed with the Casino Board and the Gaming Board. Disclosure

20 must consist of the date of the communication, the identity and

21 job title of the person with whom the communication was made, a

22 brief summary of the communication, the action requested or

23 recommended, all responses made, the identity and job title of

24 the person making the response, and any other pertinent

25 information. In addition, if the communication is written or

26 digital, then the entire communication shall be disclosed.

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1 Public disclosure of the written summary provided to the

2 Casino Board and the Gaming Board shall be subject to the

3 exemptions provided under Section 7 of the Freedom of

4 Information Act.

5 This subsection (n) shall not apply to communications

6 regarding traffic, law enforcement, security, environmental

7 issues, City services, transportation, or other routine

8 matters concerning the ordinary operations of the casino.

9 (o) For purposes of this Section:

10 "Ordinary operations" means operations relating to the

11 casino facility other than the conduct of gambling activities.

12 "Routine matters" includes the application for, issuance,

13 renewal, and other processes associated with City permits and

14 licenses.

15 "Employee of the City" means only those employees of the

16 City who provide services to the Authority or otherwise

17 influence the decisions of the Authority or the Casino Board.

18 (p) Any Casino Board member or employee of the Authority

19 who violates any provision of this Section is guilty of a Class

20 4 felony.

21 Section 1-45. Casino management contracts.

22 (a) In accordance with all applicable procurement laws and

23 rules, the Casino Board shall develop and administer a

24 competitive sealed bidding process for the selection of a

25 potential casino operator licensee to develop or operate a

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1 casino within the City. The Casino Board shall issue one or

2 more requests for proposals. The Casino Board may establish

3 minimum financial and investment requirements to determine the

4 eligibility of persons to respond to the Casino Board's

5 requests for proposals, and may establish and consider such

6 other criteria as it deems appropriate. The Casino Board may

7 impose a reasonable fee upon persons who respond to requests

8 for proposals, in order to reimburse the Casino Board for its

9 costs in preparing and issuing the requests and reviewing the

10 proposals. At least 30 days prior to the commencement of the

11 competitive bidding process, the Gaming Board shall be given an

12 opportunity to review the competitive bidding process

13 established by the Casino Board. During the competitive bidding

14 process, the Casino Board shall keep the Gaming Board apprised

15 of the process and the responses received in connection with

16 the Casino Board's requests for proposals.

17 (b) Within 5 business days after the time limit for

18 submitting bids and proposals has passed, the Casino Board

19 shall make all bids and proposals public, provided, however,

20 the Casino Board shall not be required to disclose any

21 information which would be exempt from disclosure under Section

22 7 of the Freedom of Information Act. Thereafter, the Casino

23 Board shall evaluate the responses to its requests for

24 proposals and the ability of all persons or entities responding

25 to its requests for proposals to meet the requirements of this

26 Act and any relevant provisions of the Illinois Gambling Act

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1 and to undertake and perform the obligations set forth in its

2 requests for proposals.

3 (c) After reviewing proposals and selecting a successful

4 bidder, the Casino Board shall enter into a casino management

5 contract with the successful bidder authorizing the operation

6 of a casino. The casino operator shall be subject to a

7 background investigation and approval by the Gaming Board. The

8 Gaming Board shall complete its background investigation and

9 approval of the casino operator within 6 months after the date

10 that the proposed casino operator submits its application to

11 the Gaming Board. If the Gaming Board does not complete its

12 background investigation and approval within the 6-month

13 period, then the Gaming Board shall give a written explanation

14 to the proposed casino operator and the chief legal officer of

15 the Authority as to why it has not reached a final

16 determination and when it reasonably expects to make a final

17 determination. Validity of the casino management contract is

18 contingent upon the issuance of a casino operator license to

19 the successful bidder. If the Gaming Board grants a casino

20 operator license, the Casino Board shall transmit a copy of the

21 executed casino management contract to the Gaming Board.

22 (d) After (1) the Authority has been issued an owners

23 license, (2) the Gaming Board has issued a casino operator

24 license, and (3) the Gaming Board has approved the members of

25 the Casino Board, the Authority may conduct gaming operations

26 at a temporary facility, subject to the adopted rules of the

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1 Gaming Board, for no longer than 24 months after gaming

2 operations begin. The Gaming Board may, after holding a public

3 hearing, grant an extension so long as a permanent facility is

4 not operational and the Authority is working in good faith to

5 complete the permanent facility. The Gaming Board may grant

6 additional extensions following further public hearings. Each

7 extension may be for a period of no longer than 6 months.

8 (e) Fifty percent of any initial consideration received by

9 the Authority that was paid as an inducement pursuant to a bid

10 for a casino management contract or an executed casino

11 management contract must be transmitted to the State and

12 deposited into the Gaming Facilities Fee Revenue Fund. The

13 initial consideration shall not include (1) any amounts paid to

14 the Authority as reimbursement for its costs in preparing or

15 issuing the requests for proposals and reviewing the proposals

16 or (2) any amounts loaned to the Authority or paid by an entity

17 on behalf of the Authority for the design, construction,

18 outfitting, or equipping of the casino, pre-opening expenses,

19 bank roll or similar expenses required to open and operate the

20 casino, or any license or per position fees imposed pursuant to

21 the Illinois Gambling Act or any other financial obligation of

22 the Authority.

23 Section 1-47. Freedom of Information Act. The Authority

24 shall be a public body as defined in the Freedom of Information

25 Act and shall be subject to the provisions of the Freedom of

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1 Information Act.

2 Section 1-50. Transfer of funds. The revenues received by

3 the Authority (other than amounts required to be paid pursuant

4 to the Illinois Gambling Act and amounts required to pay the

5 operating expenses of the Authority, to pay amounts due the

6 casino operator licensee pursuant to a casino management

7 contract, to repay any borrowing of the Authority made pursuant

8 to Section 1-31, to pay debt service on any bonds issued under

9 Section 1-75, and to pay any expenses in connection with the

10 issuance of such bonds pursuant to Section 1-75 or derivative

11 products pursuant to Section 1-85) shall be transferred to the

12 City by the Authority. Moneys transferred to the City pursuant

13 to this Section shall be expended or obligated by the City for

14 the construction, maintenance, and modernization of schools.

15 Section 1-60. Auditor General.

16 (a) Prior to the issuance of bonds under this Act, the

17 Authority shall submit to the Auditor General a certification

18 that:

19 (1) it is legally authorized to issue bonds;

20 (2) scheduled annual payments of principal and

21 interest on the bonds to be issued meet the requirements of

22 Section 1-75 of this Act;

23 (3) no bond shall mature later than 30 years; and

24 (4) after payment of costs of issuance and necessary

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1 deposits to funds and accounts established with respect to

2 debt service on the bonds, the net bond proceeds (exclusive

3 of any proceeds to be used to refund outstanding bonds)

4 will be used only for the purposes set forth in this Act.

5 The Authority also shall submit to the Auditor General its

6 projections on revenues to be generated and pledged to

7 repayment of the bonds as scheduled and such other information

8 as the Auditor General may reasonably request.

9 The Auditor General shall examine the certifications and

10 information submitted and submit a report to the Authority and

11 the Gaming Board indicating whether the required

12 certifications, projections, and other information have been

13 submitted by the Authority and whether the assumptions

14 underlying the projections are not unreasonable in the

15 aggregate. The Auditor General shall submit the report no later

16 than 60 days after receiving the information required to be

17 submitted by the Authority.

18 The Auditor General shall submit a bill to the Authority

19 for costs associated with the examinations and report required

20 under this Section. The Authority shall reimburse in a timely

21 manner.

22 (b) The Authority shall enter into an intergovernmental

23 agreement with the Auditor General authorizing the Auditor

24 General to, every 2 years, (i) review the financial audit of

25 the Authority performed by the Authority's certified public

26 accountants, (ii) perform a management audit of the Authority,

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1 and (iii) perform a management audit of the casino operator

2 licensee. The Auditor General shall provide the Authority and

3 the General Assembly with the audits and shall post on his or

4 her Internet website such portions of the audit or other

5 financial information as generally would be made publicly

6 available for other owners licensees under the Illinois

7 Gambling Act. The Auditor General shall submit a bill to the

8 Authority for costs associated with the review and the audit

9 required under this Section, which costs shall not exceed

10 $100,000, and the Authority shall reimburse the Auditor General

11 for such costs in a timely manner.

12 Section 1-62. Advisory committee. An Advisory Committee is

13 established to monitor, review, and report on (1) the

14 Authority's utilization of minority-owned business enterprises

15 and female-owned business enterprises, (2) employment of

16 females, and (3) employment of minorities with regard to the

17 development and construction of the casino as authorized under

18 Section 7 of the Illinois Gambling Act. The Authority shall

19 work with the Advisory Committee in accumulating necessary

20 information for the Committee to submit reports, as necessary,

21 to the General Assembly and to the City.

22 The Committee shall consist of 9 members as provided in

23 this Section. Five members shall be selected by the Governor

24 and 4 members shall be selected by the Mayor. The Governor and

25 Mayor shall each appoint at least one current member of the

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1 General Assembly. The Advisory Committee shall meet

2 periodically and shall report the information to the Mayor of

3 the City and to the General Assembly by December 31st of every

4 year.

5 The Advisory Committee shall be dissolved on the date that

6 casino gambling operations are first conducted at a permanent

7 facility under the license authorized under Section 7 of the

8 Illinois Gambling Act. For the purposes of this Section, the

9 terms "female" and "minority person" have the meanings provided

10 in Section 2 of the Business Enterprise for Minorities,

11 Females, and Persons with Disabilities Act.

12 Section 1-65. Acquisition of property; eminent domain

13 proceedings. For the lawful purposes of this Act, the City may

14 acquire, by eminent domain or by condemnation proceedings in

15 the manner provided by the Eminent Domain Act, real or personal

16 property or interests in real or personal property located in

17 the City, and the City may convey to the Authority property so

18 acquired. The acquisition of property under this Section is

19 declared to be for a public use.

20 Section 1-67. Limitations on gaming at Chicago airports.

21 The Authority may conduct gaming operations in an airport under

22 the administration or control of the Chicago Department of

23 Aviation. Gaming operations may be conducted pursuant to this

24 Section so long as (i) gaming operations are conducted in a

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1 secured area that is beyond the Transportation Security

2 Administration security checkpoints and only available to

3 airline passengers at least 21 years of age who are members of

4 a private club, and not to the general public, (ii) gaming

5 operations are limited to slot machines, as defined in Section

6 4 of the Illinois Gambling Act, and (iii) the combined number

7 of gaming positions operating in the City at the airports and

8 at the temporary and permanent casino facility does not exceed

9 the maximum number of gaming positions authorized pursuant to

10 subsection (h) of Section 7 of the Illinois Gambling Act.

11 Gaming operations at an airport are subject to all applicable

12 laws and rules that apply to any other gaming facility under

13 this Act or the Illinois Gambling Act.

14 Section 1-70. Local regulation. In addition to this Act,

15 the Illinois Gambling Act, and all of the rules of the Gaming

16 Board, the casino facilities and operations therein shall be

17 subject to all ordinances and regulations of the City. The

18 construction, development, and operation of the casino shall

19 comply with all ordinances, regulations, rules, and controls of

20 the City, including, but not limited to, those relating to

21 zoning and planned development, building, fire prevention, and

22 land use. However, the regulation of gaming operations is

23 subject to the exclusive jurisdiction of the Gaming Board. The

24 Gaming Board shall be responsible for the investigation for and

25 issuance of all licenses required by this Act and the Illinois

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1 Gambling Act.

2 Section 1-75. Borrowing.

3 (a) The Authority may borrow money and issue bonds as

4 provided in this Section. Bonds of the Authority may be issued

5 to provide funds for land acquisition, site assembly and

6 preparation, and the design and construction of the casino, as

7 defined in the Illinois Gambling Act, all ancillary and related

8 facilities comprising the casino complex, and all on-site and

9 off-site infrastructure improvements required in connection

10 with the development of the casino; to refund (at the time or

11 in advance of any maturity or redemption) or redeem any bonds

12 of the Authority; to provide or increase a debt service reserve

13 fund or other reserves with respect to any or all of its bonds;

14 or to pay the legal, financial, administrative, bond insurance,

15 credit enhancement, and other legal expenses of the

16 authorization, issuance, or delivery of bonds. In this Act, the

17 term "bonds" also includes notes of any kind, interim

18 certificates, refunding bonds, or any other evidence of

19 obligation for borrowed money issued under this Section. Bonds

20 may be issued in one or more series and may be payable and

21 secured either on a parity with or separately from other bonds.

22 (b) The bonds of the Authority shall be payable from one or

23 more of the following sources: (i) the property or revenues of

24 the Authority; (ii) revenues derived from the casino; (iii)

25 revenues derived from any casino operator licensee; (iv) fees,

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1 bid proceeds, charges, lease payments, payments required

2 pursuant to any casino management contract or other revenues

3 payable to the Authority, or any receipts of the Authority; (v)

4 payments by financial institutions, insurance companies, or

5 others pursuant to letters or lines of credit, policies of

6 insurance, or purchase agreements; (vi) investment earnings

7 from funds or accounts maintained pursuant to a bond resolution

8 or trust indenture; (vii) proceeds of refunding bonds; (viii)

9 any other revenues derived from or payments by the City; and

10 (ix) any payments by any casino operator licensee or others

11 pursuant to any guaranty agreement.

12 (c) Bonds shall be authorized by a resolution of the

13 Authority and may be secured by a trust indenture by and

14 between the Authority and a corporate trustee or trustees,

15 which may be any trust company or bank having the powers of a

16 trust company within or without the State. Bonds shall meet the

17 following requirements:

18 (1) Bonds may bear interest payable at any time or

19 times and at any rate or rates, notwithstanding any other

20 provision of law to the contrary, and may be subject to

21 such other terms and conditions as may be provided by the

22 resolution or indenture authorizing the issuance of such

23 bonds.

24 (2) Bonds issued pursuant to this Section may be

25 payable on such dates and times as may be provided for by

26 the resolution or indenture authorizing the issuance of

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1 such bonds; provided, however, that such bonds shall mature

2 no later than 30 years from the date of issuance.

3 (3) Bonds issued pursuant to this Section may be sold

4 pursuant to notice of sale and public bid or by negotiated

5 sale.

6 (4) Bonds shall be payable at a time or times, in the

7 denominations and form, including book entry form, either

8 coupon, registered, or both, and carry the registration and

9 privileges as to exchange, transfer or conversion, and

10 replacement of mutilated, lost, or destroyed bonds as the

11 resolution or trust indenture may provide.

12 (5) Bonds shall be payable in lawful money of the

13 United States at a designated place.

14 (6) Bonds shall be subject to the terms of purchase,

15 payment, redemption, refunding, or refinancing that the

16 resolution or trust indenture provides.

17 (7) Bonds shall be executed by the manual or facsimile

18 signatures of the officers of the Authority designated by

19 the Board, which signatures shall be valid at delivery even

20 for one who has ceased to hold office.

21 (8) Bonds shall be sold at public or private sale in

22 the manner and upon the terms determined by the Authority.

23 (9) Bonds shall be issued in accordance with the

24 provisions of the Local Government Debt Reform Act.

25 (d) The Authority shall adopt a procurement program with

26 respect to contracts relating to underwriters, bond counsel,

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1 financial advisors, and accountants. The program shall include

2 goals for the payment of not less than 30% of the total dollar

3 value of the fees from these contracts to minority-owned

4 businesses and female-owned businesses as defined in the

5 Business Enterprise for Minorities, Females, and Persons with

6 Disabilities Act. The Authority shall conduct outreach to

7 minority-owned businesses and female-owned businesses.

8 Outreach shall include, but is not limited to, advertisements

9 in periodicals and newspapers, mailings, and other appropriate

10 media. The Authority shall submit to the General Assembly a

11 comprehensive report that shall include, at a minimum, the

12 details of the procurement plan, outreach efforts, and the

13 results of the efforts to achieve goals for the payment of

14 fees.

15 (e) Subject to the Illinois Gambling Act and rules of the

16 Gaming Board regarding pledging of interests in holders of

17 owners licenses, any resolution or trust indenture may contain

18 provisions that may be a part of the contract with the holders

19 of the bonds as to the following:

20 (1) Pledging, assigning, or directing the use,

21 investment, or disposition of revenues of the Authority or

22 proceeds or benefits of any contract, including without

23 limitation any rights in any casino management contract.

24 (2) The setting aside of loan funding deposits, debt

25 service reserves, replacement or operating reserves, cost

26 of issuance accounts and sinking funds, and the regulation,

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1 investment, and disposition thereof.

2 (3) Limitations on the purposes to which or the

3 investments in which the proceeds of sale of any issue of

4 bonds or the Authority's revenues and receipts may be

5 applied or made.

6 (4) Limitations on the issue of additional bonds, the

7 terms upon which additional bonds may be issued and

8 secured, the terms upon which additional bonds may rank on

9 a parity with, or be subordinate or superior to, other

10 bonds.

11 (5) The refunding, advance refunding, or refinancing

12 of outstanding bonds.

13 (6) The procedure, if any, by which the terms of any

14 contract with bondholders may be altered or amended and the

15 amount of bonds and holders of which must consent thereto

16 and the manner in which consent shall be given.

17 (7) Defining the acts or omissions that shall

18 constitute a default in the duties of the Authority to

19 holders of bonds and providing the rights or remedies of

20 such holders in the event of a default, which may include

21 provisions restricting individual rights of action by

22 bondholders.

23 (8) Providing for guarantees, pledges of property,

24 letters of credit, or other security, or insurance for the

25 benefit of bondholders.

26 (f) No member of the Casino Board, nor any person executing

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1 the bonds, shall be liable personally on the bonds or subject

2 to any personal liability by reason of the issuance of the

3 bonds.

4 (g) The Authority may issue and secure bonds in accordance

5 with the provisions of the Local Government Credit Enhancement

6 Act.

7 (h) A pledge by the Authority of revenues and receipts as

8 security for an issue of bonds or for the performance of its

9 obligations under any casino management contract shall be valid

10 and binding from the time when the pledge is made. The revenues

11 and receipts pledged shall immediately be subject to the lien

12 of the pledge without any physical delivery or further act, and

13 the lien of any pledge shall be valid and binding against any

14 person having any claim of any kind in tort, contract, or

15 otherwise against the Authority, irrespective of whether the

16 person has notice. No resolution, trust indenture, management

17 agreement or financing statement, continuation statement, or

18 other instrument adopted or entered into by the Authority need

19 be filed or recorded in any public record other than the

20 records of the Authority in order to perfect the lien against

21 third persons, regardless of any contrary provision of law.

22 (i) Bonds that are being paid or retired by issuance, sale,

23 or delivery of bonds, and bonds for which sufficient funds have

24 been deposited with the paying agent or trustee to provide for

25 payment of principal and interest thereon, and any redemption

26 premium, as provided in the authorizing resolution, shall not

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1 be considered outstanding for the purposes of this subsection.

2 (j) The bonds of the Authority shall not be indebtedness of

3 the State. The bonds of the Authority are not general

4 obligations of the State and are not secured by a pledge of the

5 full faith and credit of the State and the holders of bonds of

6 the Authority may not require the application of State revenues

7 or funds to the payment of bonds of the Authority. The

8 foregoing non-recourse language must be printed in bold-face

9 type on the face of the bonds and in the preliminary and final

10 official statements on the bonds.

11 (k) The State of Illinois pledges and agrees with the

12 owners of the bonds that it will not limit or alter the rights

13 and powers vested in the Authority by this Act so as to impair

14 the terms of any contract made by the Authority with the owners

15 or in any way impair the rights and remedies of the owners

16 until the bonds, together with interest on them, and all costs

17 and expenses in connection with any action or proceedings by or

18 on behalf of the owners, are fully met and discharged. The

19 Authority is authorized to include this pledge and agreement in

20 any contract with the owners of bonds issued under this

21 Section.

22 (l) No person holding an elective office in the City, in

23 Cook County, or in this State, holding a seat in the General

24 Assembly, or serving as a board member, trustee, officer, or

25 employee of the Authority, including the spouse of that person,

26 may receive a legal, banking, consulting, or other fee related

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1 to the issuance of bonds. This prohibition shall also apply to

2 a company or firm that employs a person holding an elective

3 office in the City, in Cook County, or in this State, holding a

4 seat in the General Assembly, or serving as a board member,

5 trustee, officer, or employee of the Authority, including the

6 spouse of that person, if the person or his or her spouse has

7 greater than 7.5% ownership of the company or firm.

8 Section 1-85. Derivative products. With respect to all or

9 part of any issue of its bonds, the Authority may enter into

10 agreements or contracts with any necessary or appropriate

11 person, which will have the benefit of providing to the

12 Authority an interest rate basis, cash flow basis, or other

13 basis different from that provided in the bonds for the payment

14 of interest. Such agreements or contracts may include, without

15 limitation, agreements or contracts commonly known as

16 "interest rate swap agreements", "forward payment conversion

17 agreements", "futures", "options", "puts", or "calls" and

18 agreements or contracts providing for payments based on levels

19 of or changes in interest rates, agreements or contracts to

20 exchange cash flows or a series of payments, or to hedge

21 payment, rate spread, or similar exposure. Any such agreement

22 or contract shall be solely an obligation or indebtedness of

23 the Authority and shall not be an obligation or indebtedness of

24 the State, nor shall any party thereto have any recourse

25 against the State in connection with the agreement or contract.

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1 Section 1-90. Legality for investment. The State of

2 Illinois, all governmental entities, all public officers,

3 banks, bankers, trust companies, savings banks and

4 institutions, building and loan associations, savings and loan

5 associations, investment companies, and other persons carrying

6 on a banking business, insurance companies, insurance

7 associations, and other persons carrying on an insurance

8 business, and all executors, administrators, guardians,

9 trustees, and other fiduciaries may legally invest any sinking

10 funds, moneys, or other funds belonging to them or within their

11 control in any bonds issued under this Act. However, nothing in

12 this Section shall be construed as relieving any person or

13 entity from any duty of exercising reasonable care in selecting

14 securities for purchase or investment.

15 Section 1-105. Budgets and reporting.

16 (a) The Casino Board shall annually adopt a budget for each

17 fiscal year. The budget may be modified from time to time in

18 the same manner and upon the same vote as it may be adopted.

19 The budget shall include the Authority's available funds and

20 estimated revenues and shall provide for payment of its

21 obligations and estimated expenditures for the fiscal year,

22 including, without limitation, expenditures for

23 administration, operation, maintenance and repairs, debt

24 service, and deposits into reserve and other funds and capital

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1 projects.

2 (b) The Casino Board shall annually cause the finances of

3 the Authority to be audited by a firm of certified public

4 accountants selected by the Casino Board in accordance with the

5 rules of the Gaming Board and post on the Authority's Internet

6 website such financial information as is required to be posted

7 by all other owners licensees under the Illinois Gambling Act.

8 (c) The Casino Board shall, for each fiscal year, prepare

9 an annual report setting forth information concerning its

10 activities in the fiscal year and the status of the development

11 of the casino. The annual report shall include financial

12 information of the Authority consistent with that which is

13 required for all other owners licensees under the Illinois

14 Gambling Act, the budget for the succeeding fiscal year, and

15 the current capital plan as of the date of the report. Copies

16 of the annual report shall be made available to persons who

17 request them and shall be submitted not later than 120 days

18 after the end of the Authority's fiscal year or, if the audit

19 of the Authority's financial statements is not completed within

20 120 days after the end of the Authority's fiscal year, as soon

21 as practical after completion of the audit, to the Governor,

22 the Mayor, the General Assembly, and the Commission on

23 Government Forecasting and Accountability.

24 Section 1-110. Deposit and withdrawal of funds.

25 (a) All funds deposited by the Authority in any bank or

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1 savings and loan association shall be placed in the name of the

2 Authority and shall be withdrawn or paid out only by check or

3 draft upon the bank or savings and loan association, signed by

4 2 officers or employees designated by the Casino Board.

5 Notwithstanding any other provision of this Section, the Casino

6 Board may designate any of its members or any officer or

7 employee of the Authority to authorize the wire transfer of

8 funds deposited by the secretary-treasurer of funds in a bank

9 or savings and loan association for the payment of payroll and

10 employee benefits-related expenses.

11 No bank or savings and loan association shall receive

12 public funds as permitted by this Section unless it has

13 complied with the requirements established pursuant to Section

14 6 of the Public Funds Investment Act.

15 (b) If any officer or employee whose signature appears upon

16 any check or draft issued pursuant to this Act ceases (after

17 attaching his signature) to hold his or her office before the

18 delivery of such a check or draft to the payee, his or her

19 signature shall nevertheless be valid and sufficient for all

20 purposes with the same effect as if he or she had remained in

21 office until delivery thereof.

22 Section 1-112. Contracts with the Authority or casino

23 operator licensee; disclosure requirements.

24 (a) A bidder, respondent, offeror, or contractor for

25 contracts with the Authority or casino operator licensee shall

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1 disclose the identity of all officers and directors and every

2 owner, beneficiary, or person with beneficial interest of more

3 than 1% or shareholder entitled to receive more than 1% of the

4 total distributable income of any corporation having any

5 interest in the contract or in the bidder, respondent, offeror,

6 or contractor. The disclosure shall be in writing and attested

7 to by an owner, trustee, corporate official, or agent. If stock

8 in a corporation is publicly traded and there is no readily

9 known individual having greater than a 1% interest, then a

10 statement to that effect attested to by an officer or agent of

11 the corporation shall fulfill the disclosure statement

12 requirement of this Section. A bidder, respondent, offeror, or

13 contractor shall notify the Authority of any changes in

14 officers, directors, ownership, or individuals having a

15 beneficial interest of more than 1%. Notwithstanding the

16 provisions of this subsection (a), the Gaming Board may adopt

17 rules in connection with contractors for contracts with the

18 Authority or the casino operator licensee.

19 (b) A bidder, respondent, offeror, or contractor for

20 contracts with an annual value of $25,000 or more or for a

21 period to exceed one year shall disclose all political

22 contributions of the bidder, respondent, offeror, or

23 contractor and any affiliated person or entity. Disclosure

24 shall include at least the names and addresses of the

25 contributors and the dollar amounts of any contributions to any

26 political committee made within the previous 2 years. The

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1 disclosure must be submitted to the Gaming Board with a copy of

2 the contract. All such disclosures shall be posted on the

3 websites of the Authority and the Gaming Board.

4 (c) As used in this Section:

5 "Contribution" means contribution as defined in Section

6 9-1.4 of the Election Code.

7 "Affiliated person" means (i) any person with any ownership

8 interest or distributive share of the bidding, responding, or

9 contracting entity in excess of 1%, (ii) executive employees of

10 the bidding, responding, or contracting entity, and (iii) the

11 spouse, minor children, and parents of any such persons.

12 "Affiliated entity" means (i) any parent or subsidiary of

13 the bidding or contracting entity, (ii) any member of the same

14 unitary business group, or (iii) any political committee for

15 which the bidding, responding, or contracting entity is the

16 sponsoring entity.

17 (d) The Gaming Board may direct the Authority or a casino

18 operator licensee to void a contract if a violation of this

19 Section occurs. The Authority may direct a casino operator

20 licensee to void a contract if a violation of this Section

21 occurs.

22 (e) All contracts pertaining to the actual operation of the

23 casino and related gaming activities shall be entered into by

24 the casino operator licensee and not the Authority and shall be

25 subject to the regulation, oversight, and approval of the

26 Gaming Board, applying the same regulation, oversight, and

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1 approval requirements as would be applied to any other owners

2 licensee under the Illinois Gambling Act.

3 Section 1-115. Purchasing.

4 (a) The Casino Board shall designate an officer of the

5 Authority to serve as the Chief Procurement Officer for the

6 Authority. The Chief Procurement Officer shall have all powers

7 and duties set forth in Section 15 of Division 10 of Article 8

8 of the Illinois Municipal Code. Except as otherwise provided in

9 this Section, the Chief Procurement Officer of the Authority

10 shall conduct procurements on behalf of the Authority subject

11 to Title 2, Chapter 92 of the Municipal Code of Chicago, which

12 by its terms incorporates Division 10 of Article 8 of the

13 Illinois Municipal Code.

14 (b) All contracts for amounts greater than $25,000 must be

15 approved by the Casino Board and executed by the chairperson of

16 the Casino Board and executive director of the Authority.

17 Contracts for amounts of $25,000 or less may be approved and

18 executed by the Chief Procurement Officer for the Authority and

19 executive director of the Authority, with approval by the chief

20 legal counsel for the Authority as to form and legality.

21 (c) All construction contracts and contracts for supplies,

22 materials, equipment, and services for amounts greater than

23 $25,000 shall be let by a competitive selection process to the

24 lowest responsible proposer, after advertising for proposals,

25 except for the following:

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1 (1) when repair parts, accessories, equipment, or

2 services are required for equipment or services previously

3 furnished or contracted for;

4 (2) when services such as water, light, heat, power,

5 telephone (other than long-distance service), or telegraph

6 are required;

7 (3) casino management contracts, which shall be

8 awarded as set forth in Section 1-45 of this Act;

9 (4) contracts where there is only one economically

10 feasible source;

11 (5) when a purchase is needed on an immediate,

12 emergency basis because there exists a threat to public

13 health or public safety, or when immediate expenditure is

14 necessary for repairs to Authority property in order to

15 protect against further loss of or damage to Authority

16 property, to prevent or minimize serious disruption in

17 Authority services or to ensure the integrity of Authority

18 records;

19 (6) contracts for professional services other than for

20 management of the casino, except such contracts described

21 in subsection (d) of this Section; and

22 (7) contracts for the use, purchase, delivery,

23 movement, or installation of (i) data processing

24 equipment, software, and services and (ii)

25 telecommunications equipment, software, and services.

26 (d) Contracts for professional services for a term of more

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1 than one year or contracts that may require payment in excess

2 of $25,000 in one year shall be let by a competitive bidding

3 process to the most highly qualified firm that agrees to

4 compensation and other terms of engagement that are both

5 reasonable and acceptable to the Casino Board.

6 (e) All contracts involving less than $25,000 shall be let

7 by competitive selection process whenever possible, and in any

8 event in a manner calculated to ensure the best interests of

9 the public.

10 (f) In determining the responsibility of any proposer, the

11 Authority may take into account the proposer's (or an

12 individual having a beneficial interest, directly or

13 indirectly, of more than 1% in such proposing entity) past

14 record of dealings with the Authority, the proposer's

15 experience, adequacy of equipment, and ability to complete

16 performance within the time set, and other factors besides

17 financial responsibility. No such contract shall be awarded to

18 any proposer other than the lowest proposer (in case of

19 purchase or expenditure) unless authorized or approved by a

20 vote of at least 3 members of the Casino Board and such action

21 is accompanied by a written statement setting forth the reasons

22 for not awarding the contract to the highest or lowest

23 proposer, as the case may be. The statement shall be kept on

24 file in the principal office of the Authority and open to

25 public inspection.

26 (g) The Authority shall have the right to reject all

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1 proposals and to re-advertise for proposals. If after any such

2 re-advertisement, no responsible and satisfactory proposals,

3 within the terms of the re-advertisement, is received, the

4 Authority may award such contract without competitive

5 selection. The contract must not be less advantageous to the

6 Authority than any valid proposal received pursuant to

7 advertisement.

8 (h) Advertisements for proposals and re-proposals shall be

9 published at least once in a daily newspaper of general

10 circulation published in the City at least 10 calendar days

11 before the time for receiving proposals and in an online

12 bulletin published on the Authority's website. Such

13 advertisements shall state the time and place for receiving and

14 opening of proposals and, by reference to plans and

15 specifications on file at the time of the first publication or

16 in the advertisement itself, shall describe the character of

17 the proposed contract in sufficient detail to fully advise

18 prospective proposers of their obligations and to ensure free

19 and open competitive selection.

20 (i) All proposals in response to advertisements shall be

21 sealed and shall be publicly opened by the Authority. All

22 proposers shall be entitled to be present in person or by

23 representatives. Cash or a certified or satisfactory cashier's

24 check, as a deposit of good faith, in a reasonable amount to be

25 fixed by the Authority before advertising for proposals, shall

26 be required with the proposal. A bond for faithful performance

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1 of the contract with surety or sureties satisfactory to the

2 Authority and adequate insurance may be required in reasonable

3 amounts to be fixed by the Authority before advertising for

4 proposals.

5 (j) The contract shall be awarded as promptly as possible

6 after the opening of proposals. The proposal of the successful

7 proposer, as well as the bids of the unsuccessful proposers,

8 shall be placed on file and be open to public inspection

9 subject to the exemptions from disclosure provided under

10 Section 7 of the Freedom of Information Act. All proposals

11 shall be void if any disclosure of the terms of any proposals

12 in response to an advertisement is made or permitted to be made

13 by the Authority before the time fixed for opening proposals.

14 (k) Notice of each and every contract that is offered,

15 including renegotiated contracts and change orders, shall be

16 published in an online bulletin. The online bulletin must

17 include at least the date first offered, the date submission of

18 offers is due, the location that offers are to be submitted to,

19 a brief purchase description, the method of source selection,

20 information of how to obtain a comprehensive purchase

21 description and any disclosure and contract forms, and

22 encouragement to prospective vendors to hire qualified

23 veterans, as defined by Section 45-67 of the Illinois

24 Procurement Code, and Illinois residents discharged from any

25 Illinois adult correctional center subject to Gaming Board

26 licensing and eligibility rules. Notice of each and every

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1 contract that is let or awarded, including renegotiated

2 contracts and change orders, shall be published in the online

3 bulletin and must include at least all of the information

4 specified in this subsection (k), as well as the name of the

5 successful responsible proposer or offeror, the contract

6 price, and the number of unsuccessful responsive proposers and

7 any other disclosure specified in this Section. This notice

8 must be posted in the online electronic bulletin prior to

9 execution of the contract.

10 Section 1-130. Affirmative action and equal opportunity

11 obligations of Authority.

12 (a) The Authority is subject to the requirements of Article

13 IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720

14 inclusive) of the Chicago Municipal Code, as now or hereafter

15 amended, renumbered, or succeeded, concerning a Minority-Owned

16 and Women-Owned Business Enterprise Procurement Program for

17 construction contracts, and Section 2-92-420 et seq. of the

18 Chicago Municipal Code, as now or hereafter amended,

19 renumbered, or succeeded, concerning a Minority-Owned and

20 Women-Owned Business Enterprise Procurement Program.

21 (b) The Authority is authorized to enter into agreements

22 with contractors' associations, labor unions, and the

23 contractors working on the development of the casino to

24 establish an apprenticeship preparedness training program to

25 provide for an increase in the number of minority and female

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1 journeymen and apprentices in the building trades and to enter

2 into agreements with community college districts or other

3 public or private institutions to provide readiness training.

4 The Authority is further authorized to enter into contracts

5 with public and private educational institutions and persons in

6 the gaming, entertainment, hospitality, and tourism industries

7 to provide training for employment in those industries.

8 Section 1-135. Transfer of interest. Neither the Authority

9 nor the City may sell, lease, rent, transfer, exchange, or

10 otherwise convey any interest that they have in the casino

11 without prior approval of the General Assembly.

12 Section 1-140. Home rule. The regulation and licensing of

13 casinos and casino gaming, casino gaming facilities, and casino

14 operator licensees under this Act are exclusive powers and

15 functions of the State. A home rule unit may not regulate or

16 license casinos, casino gaming, casino gaming facilities, or

17 casino operator licensees under this Act, except as provided

18 under this Act. This Section is a denial and limitation of home

19 rule powers and functions under subsection (h) of Section 6 of

20 Article VII of the Illinois Constitution.

21 Section 1-145. Prohibition of political contributions from

22 casino operator licensees and applicants.

23 (a) The General Assembly has a compelling interest in

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1 protecting the integrity of both the electoral process and the

2 legislative process by preventing corruption and the

3 appearance of corruption which may arise through permitting

4 certain political campaign contributions by certain persons

5 involved in the gaming industry and regulated by the State.

6 Unlike most other regulated industries, gaming is especially

7 susceptible to corruption and potential criminal influence. In

8 Illinois, only licensed gaming activities are legal and all

9 other gaming activities are strictly prohibited. Given these

10 circumstances, it is imperative to eliminate any potential

11 corrupt influence in the gaming industry and the electoral

12 process.

13 Banning political campaign contributions by certain

14 persons subject to this Section to State officeholders and

15 candidates for such offices and to county and municipal

16 officeholders and candidates for such offices in counties and

17 municipalities that receive financial benefits from gaming

18 activities is necessary to prevent corruption and the

19 appearance of corruption that may arise when political campaign

20 contributions and gaming that is regulated by the State and

21 that confers benefits on counties and municipalities are

22 intermingled.

23 The General Assembly has prohibited political campaign

24 contributions to certain State and local officeholders and

25 candidates for such offices by certain persons with State of

26 Illinois and Metropolitan Pier and Exposition Authority

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1 contracts and pending bids or proposals for contracts of over

2 $50,000 and certain individuals and entities affiliated with

3 such persons. Certain gaming licensees will receive receipts

4 far in excess of the base level of contract amounts subject to

5 such other campaign contribution prohibitions.

6 (b) As used in this Section:

7 "Affiliated entity" means (i) any corporate parent and

8 operating subsidiary of the business entity applying for or

9 holding a license, (ii) each operating subsidiary of the

10 corporate parent of the business entity applying for or holding

11 a license, (iii) any organization recognized by the United

12 States Internal Revenue Service as a tax-exempt organization

13 described in Section 501(c) of the Internal Revenue Code of

14 1986 (or any successor provision of federal tax law)

15 established by one or more business entities seeking or holding

16 a license, any affiliated entity of such business entity, or

17 any affiliated person of such business entity, and (iv) any

18 political committee for which the business entity applying for

19 or holding a license, or any 501(c) organization described in

20 item (iii) related to that business entity, is the sponsoring

21 entity as defined in Section 9-3 of the Election Code. For

22 purposes of item (iv), the funding of all business entities

23 applying for or holding a license shall be aggregated in

24 determining whether such political committee is an affiliated

25 entity.

26 "Affiliated person" means (i) any person with any ownership

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1 interest or distributive share in excess of 7.5% of any

2 business entity applying for or holding a license, (ii)

3 executive employees of any such business entity, (iii) any

4 person designated as a key person under the Illinois Gambling

5 Act, and (iv) the spouse of the persons described in items (i)

6 through (iii).

7 "Business entity" means any entity doing business for

8 profit, whether organized as a corporation, partnership, sole

9 proprietorship, limited liability company, or partnership or

10 otherwise.

11 "Contribution" means a contribution as defined in Section

12 9-1.4 of the Election Code.

13 "Declared candidate" means a person who has filed a

14 statement of candidacy and petition for nomination or election

15 in the principal office of the State Board of Elections, or in

16 the office of the appropriate election authority for any county

17 or municipality in which a casino is located or proposed or

18 which receives any gaming revenue.

19 "Executive employee" means (i) any person who is an officer

20 or director or who fulfills duties equivalent to those of an

21 officer or director of a business entity applying for or

22 holding a license and (ii) any employee of such business entity

23 who is required to register under the Lobbyist Registration

24 Act.

25 "License" means the casino operator license issued

26 pursuant to this Act.

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1 "Officeholder" means the Governor, Lieutenant Governor,

2 Attorney General, Secretary of State, Comptroller, Treasurer,

3 member of the General Assembly, or any officeholder in any

4 county or municipality in which a riverboat, casino, or

5 electronic gaming device is located or proposed or that

6 receives any gaming revenue.

7 (c) Any person or business entity applying for or holding a

8 license, any affiliated entities or persons of such business

9 entity, and any entities or persons soliciting a contribution

10 or causing a contribution to be made on behalf of such person

11 or business entity, are prohibited from making any contribution

12 to any officeholder or declared candidate or any political

13 committee affiliated with any officeholder or declared

14 candidate, as defined in Section 9-1.8 of the Election Code.

15 This prohibition shall commence upon filing of an application

16 for a license and shall continue for a period of 2 years after

17 termination, suspension or revocation of the license.

18 The Gaming Board shall have authority to suspend, revoke,

19 or restrict the license and to impose civil penalties of up to

20 $100,000 for each violation of this subsection (c). A notice of

21 each such violation and the penalty imposed shall be published

22 on the Gaming Board's Internet website and in the Illinois

23 Register. Payments received by the State pursuant to this

24 subsection (c) shall be deposited into the General Revenue

25 Fund.

26 Any officeholder or declared candidate or any political

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1 committee affiliated with any officeholder or declared

2 candidate that has received a contribution in violation of this

3 subsection (c) shall pay an amount equal to the value of the

4 contribution to the State no more than 30 days after notice of

5 the violation concerning the contribution appears in the

6 Illinois Register. Payments received by the State pursuant to

7 this subsection (c) shall be deposited into the General Revenue

8 Fund.

9 (d) The Gaming Board shall post on its Internet website a

10 list of all persons, business entities, and affiliated entities

11 prohibited from making contributions to any officeholder or

12 declared candidate political committee pursuant to subsection

13 (c), which list shall be updated and published, at a minimum,

14 every 6 months.

15 Any person, business entity, or affiliated entity

16 prohibited from making contributions to any officeholder or

17 declared candidate political committee pursuant to subsection

18 (c) shall notify the Gaming Board within 7 days after

19 discovering any necessary change or addition to the information

20 relating to that person, business entity, or affiliated entity

21 contained in the list.

22 An individual who acts in good faith and in reliance on any

23 information contained in the list shall not be subject to any

24 penalties or liability imposed for a violation of this Section.

25 (e) If any provision of this Section is held invalid or its

26 application to any person or circumstance is held invalid, the

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1 invalidity of that provision or application does not affect the

2 other provisions or applications of this Section that can be

3 given effect without the invalid application or provision.

4 ARTICLE 90.

5 Section 90-1. Findings. The General Assembly makes all of

6 the following findings:

7 (1) That the cumulative reduction to pre-K through 12

8 education funding since 2009 is approximately

9 $861,000,000.

10 (2) That during the last 2 years, general state aid to

11 Illinois common schools has been underfunded as a result of

12 budget cuts, resulting in pro-rated payments to school

13 districts that are less than the foundational level of

14 $6,119 per pupil, which represents the minimum each pupil

15 needs to be educated.

16 (3) That a significant infusion of new revenue is

17 necessary in order to fully fund the foundation level and

18 to maintain and support education in Illinois.

19 (4) That the decline of the Illinois horse racing and

20 breeding program, a $2.5 billion industry, would be

21 reversed if this amendatory Act of the 100th General

22 Assembly would be enacted.

23 (5) That the Illinois horse racing industry is on the

24 verge of extinction due to fierce competition from fully

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1 developed horse racing and gaming operations in other

2 states.

3 (6) That allowing the State's horse racing venues,

4 currently licensed gaming destinations, to maximize their

5 capacities with gaming machines, would generate up to $120

6 million to $200 million for the State in the form of extra

7 licensing fees, plus an additional $100 million to $300

8 million in recurring annual tax revenue for the State to

9 help ensure that school, road, and other building projects

10 promised under the capital plan occur on schedule.

11 (7) That Illinois agriculture and other businesses

12 that support and supply the horse racing industry, already

13 a sector that employs over 37,000 Illinoisans, also stand

14 to substantially benefit and would be much more likely to

15 create additional jobs should Illinois horse racing once

16 again become competitive with other states.

17 (8) That by keeping these projects on track, the State

18 can be sure that significant job and economic growth will

19 in fact result from the previously enacted legislation.

20 (9) That gaming machines at Illinois horse racing

21 tracks would create an estimated 1,200 to 1,500 permanent

22 jobs, and an estimated capital investment of up to $200

23 million to $400 million at these race tracks would prompt

24 additional trade organization jobs necessary to construct

25 new facilities or remodel race tracks to operate electronic

26 gaming.

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1 Section 90-3. The State Officials and Employees Ethics Act

2 is amended by changing Sections 5-45 and 20-10 as follows:

3 (5 ILCS 430/5-45)

4 Sec. 5-45. Procurement; revolving door prohibition.

5 (a) No former officer, member, or State employee, or spouse

6 or immediate family member living with such person, shall,

7 within a period of one year immediately after termination of

8 State employment, knowingly accept employment or receive

9 compensation or fees for services from a person or entity if

10 the officer, member, or State employee, during the year

11 immediately preceding termination of State employment,

12 participated personally and substantially in the award of State

13 contracts, or the issuance of State contract change orders,

14 with a cumulative value of $25,000 or more to the person or

15 entity, or its parent or subsidiary.

16 (b) No former officer of the executive branch or State

17 employee of the executive branch with regulatory or licensing

18 authority, or spouse or immediate family member living with

19 such person, shall, within a period of one year immediately

20 after termination of State employment, knowingly accept

21 employment or receive compensation or fees for services from a

22 person or entity if the officer or State employee, during the

23 year immediately preceding termination of State employment,

24 participated personally and substantially in making a

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1 regulatory or licensing decision that directly applied to the

2 person or entity, or its parent or subsidiary.

3 (c) Within 6 months after the effective date of this

4 amendatory Act of the 96th General Assembly, each executive

5 branch constitutional officer and legislative leader, the

6 Auditor General, and the Joint Committee on Legislative Support

7 Services shall adopt a policy delineating which State positions

8 under his or her jurisdiction and control, by the nature of

9 their duties, may have the authority to participate personally

10 and substantially in the award of State contracts or in

11 regulatory or licensing decisions. The Governor shall adopt

12 such a policy for all State employees of the executive branch

13 not under the jurisdiction and control of any other executive

14 branch constitutional officer.

15 The policies required under subsection (c) of this Section

16 shall be filed with the appropriate ethics commission

17 established under this Act or, for the Auditor General, with

18 the Office of the Auditor General.

19 (d) Each Inspector General shall have the authority to

20 determine that additional State positions under his or her

21 jurisdiction, not otherwise subject to the policies required by

22 subsection (c) of this Section, are nonetheless subject to the

23 notification requirement of subsection (f) below due to their

24 involvement in the award of State contracts or in regulatory or

25 licensing decisions.

26 (e) The Joint Committee on Legislative Support Services,

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1 the Auditor General, and each of the executive branch

2 constitutional officers and legislative leaders subject to

3 subsection (c) of this Section shall provide written

4 notification to all employees in positions subject to the

5 policies required by subsection (c) or a determination made

6 under subsection (d): (1) upon hiring, promotion, or transfer

7 into the relevant position; and (2) at the time the employee's

8 duties are changed in such a way as to qualify that employee.

9 An employee receiving notification must certify in writing that

10 the person was advised of the prohibition and the requirement

11 to notify the appropriate Inspector General in subsection (f).

12 (f) Any State employee in a position subject to the

13 policies required by subsection (c) or to a determination under

14 subsection (d), but who does not fall within the prohibition of

15 subsection (h) below, who is offered non-State employment

16 during State employment or within a period of one year

17 immediately after termination of State employment shall, prior

18 to accepting such non-State employment, notify the appropriate

19 Inspector General. Within 10 calendar days after receiving

20 notification from an employee in a position subject to the

21 policies required by subsection (c), such Inspector General

22 shall make a determination as to whether the State employee is

23 restricted from accepting such employment by subsection (a) or

24 (b). In making a determination, in addition to any other

25 relevant information, an Inspector General shall assess the

26 effect of the prospective employment or relationship upon

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1 decisions referred to in subsections (a) and (b), based on the

2 totality of the participation by the former officer, member, or

3 State employee in those decisions. A determination by an

4 Inspector General must be in writing, signed and dated by the

5 Inspector General, and delivered to the subject of the

6 determination within 10 calendar days or the person is deemed

7 eligible for the employment opportunity. For purposes of this

8 subsection, "appropriate Inspector General" means (i) for

9 members and employees of the legislative branch, the

10 Legislative Inspector General; (ii) for the Auditor General and

11 employees of the Office of the Auditor General, the Inspector

12 General provided for in Section 30-5 of this Act; and (iii) for

13 executive branch officers and employees, the Inspector General

14 having jurisdiction over the officer or employee. Notice of any

15 determination of an Inspector General and of any such appeal

16 shall be given to the ultimate jurisdictional authority, the

17 Attorney General, and the Executive Ethics Commission.

18 (g) An Inspector General's determination regarding

19 restrictions under subsection (a) or (b) may be appealed to the

20 appropriate Ethics Commission by the person subject to the

21 decision or the Attorney General no later than the 10th

22 calendar day after the date of the determination.

23 On appeal, the Ethics Commission or Auditor General shall

24 seek, accept, and consider written public comments regarding a

25 determination. In deciding whether to uphold an Inspector

26 General's determination, the appropriate Ethics Commission or

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1 Auditor General shall assess, in addition to any other relevant

2 information, the effect of the prospective employment or

3 relationship upon the decisions referred to in subsections (a)

4 and (b), based on the totality of the participation by the

5 former officer, member, or State employee in those decisions.

6 The Ethics Commission shall decide whether to uphold an

7 Inspector General's determination within 10 calendar days or

8 the person is deemed eligible for the employment opportunity.

9 (h) The following officers, members, or State employees

10 shall not, within a period of one year immediately after

11 termination of office or State employment, knowingly accept

12 employment or receive compensation or fees for services from a

13 person or entity if the person or entity or its parent or

14 subsidiary, during the year immediately preceding termination

15 of State employment, was a party to a State contract or

16 contracts with a cumulative value of $25,000 or more involving

17 the officer, member, or State employee's State agency, or was

18 the subject of a regulatory or licensing decision involving the

19 officer, member, or State employee's State agency, regardless

20 of whether he or she participated personally and substantially

21 in the award of the State contract or contracts or the making

22 of the regulatory or licensing decision in question:

23 (1) members or officers;

24 (2) members of a commission or board created by the

25 Illinois Constitution;

26 (3) persons whose appointment to office is subject to

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1 the advice and consent of the Senate;

2 (4) the head of a department, commission, board,

3 division, bureau, authority, or other administrative unit

4 within the government of this State;

5 (5) chief procurement officers, State purchasing

6 officers, and their designees whose duties are directly

7 related to State procurement; ~~and~~

8 (6) chiefs of staff, deputy chiefs of staff, associate

9 chiefs of staff, assistant chiefs of staff, and deputy

10 governors; ~~.~~

11 (7) employees of the Illinois Racing Board; and

12 (8) employees of the Illinois Gaming Board.

13 (i) For the purposes of this Section, with respect to

14 officers or employees of a regional transit board, as defined

15 in this Act, the phrase "person or entity" does not include:

16 (i) the United States government, (ii) the State, (iii)

17 municipalities, as defined under Article VII, Section 1 of the

18 Illinois Constitution, (iv) units of local government, as

19 defined under Article VII, Section 1 of the Illinois

20 Constitution, or (v) school districts.

21 (Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)

22 (5 ILCS 430/20-10)

23 Sec. 20-10. Offices of Executive Inspectors General.

24 (a) Six ~~Five~~ independent Offices of the Executive Inspector

25 General are created, one each for the Governor, the Attorney

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1 General, the Secretary of State, the Comptroller, and the

2 Treasurer and one for gaming activities. Each Office shall be

3 under the direction and supervision of an Executive Inspector

4 General and shall be a fully independent office with separate

5 appropriations.

6 (b) The Governor, Attorney General, Secretary of State,

7 Comptroller, and Treasurer shall each appoint an Executive

8 Inspector General, and the Governor shall appoint an Executive

9 Inspector General for gaming activities. Each appointment must

10 be madewithout regard to political affiliation and solely on

11 the basis of integrity and demonstrated ability. Appointments

12 shall be made by and with the advice and consent of the Senate

13 by three-fifths of the elected members concurring by record

14 vote. Any nomination not acted upon by the Senate within 60

15 session days of the receipt thereof shall be deemed to have

16 received the advice and consent of the Senate. If, during a

17 recess of the Senate, there is a vacancy in an office of

18 Executive Inspector General, the appointing authority shall

19 make a temporary appointment until the next meeting of the

20 Senate when the appointing authority shall make a nomination to

21 fill that office. No person rejected for an office of Executive

22 Inspector General shall, except by the Senate's request, be

23 nominated again for that office at the same session of the

24 Senate or be appointed to that office during a recess of that

25 Senate.

26 Nothing in this Article precludes the appointment by the

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1 Governor, Attorney General, Secretary of State, Comptroller,

2 or Treasurer of any other inspector general required or

3 permitted by law. The Governor, Attorney General, Secretary of

4 State, Comptroller, and Treasurer each may appoint an existing

5 inspector general as the Executive Inspector General required

6 by this Article, provided that such an inspector general is not

7 prohibited by law, rule, jurisdiction, qualification, or

8 interest from serving as the Executive Inspector General

9 required by this Article. An appointing authority may not

10 appoint a relative as an Executive Inspector General.

11 Each Executive Inspector General shall have the following

12 qualifications:

13 (1) has not been convicted of any felony under the laws

14 of this State, another State, or the United States;

15 (2) has earned a baccalaureate degree from an

16 institution of higher education; and

17 (3) has 5 or more years of cumulative service (A) with

18 a federal, State, or local law enforcement agency, at least

19 2 years of which have been in a progressive investigatory

20 capacity; (B) as a federal, State, or local prosecutor; (C)

21 as a senior manager or executive of a federal, State, or

22 local agency; (D) as a member, an officer, or a State or

23 federal judge; or (E) representing any combination of (A)

24 through (D).

25 The term of each initial Executive Inspector General shall

26 commence upon qualification and shall run through June 30,

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1 2008. The initial appointments shall be made within 60 days

2 after the effective date of this Act.

3 After the initial term, each Executive Inspector General

4 shall serve for 5-year terms commencing on July 1 of the year

5 of appointment and running through June 30 of the fifth

6 following year. An Executive Inspector General may be

7 reappointed to one or more subsequent terms.

8 A vacancy occurring other than at the end of a term shall

9 be filled by the appointing authority only for the balance of

10 the term of the Executive Inspector General whose office is

11 vacant.

12 Terms shall run regardless of whether the position is

13 filled.

14 (c) The Executive Inspector General appointed by the

15 Attorney General shall have jurisdiction over the Attorney

16 General and all officers and employees of, and vendors and

17 others doing business with, State agencies within the

18 jurisdiction of the Attorney General. The Executive Inspector

19 General appointed by the Secretary of State shall have

20 jurisdiction over the Secretary of State and all officers and

21 employees of, and vendors and others doing business with, State

22 agencies within the jurisdiction of the Secretary of State. The

23 Executive Inspector General appointed by the Comptroller shall

24 have jurisdiction over the Comptroller and all officers and

25 employees of, and vendors and others doing business with, State

26 agencies within the jurisdiction of the Comptroller. The

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1 Executive Inspector General appointed by the Treasurer shall

2 have jurisdiction over the Treasurer and all officers and

3 employees of, and vendors and others doing business with, State

4 agencies within the jurisdiction of the Treasurer. The

5 Executive Inspector General appointed by the Governor shall

6 have jurisdiction over (i) the Governor, (ii) the Lieutenant

7 Governor, (iii) all officers and employees of, and vendors and

8 others doing business with, executive branch State agencies

9 under the jurisdiction of the Executive Ethics Commission and

10 not within the jurisdiction of the Attorney General, the

11 Secretary of State, the Comptroller, ~~or~~ the Treasurer, or the

12 Executive Inspector General for gaming activities, and (iv) all

13 board members and employees of the Regional Transit Boards and

14 all vendors and others doing business with the Regional Transit

15 Boards.The Executive Inspector General for gaming activities

16 appointed by the Governor has jurisdiction over the Illinois

17 Gaming Board, all officers and employees of the Illinois Gaming

18 Board, and all activities of the Illinois Gaming Board.

19 The jurisdiction of each Executive Inspector General is to

20 investigate allegations of fraud, waste, abuse, mismanagement,

21 misconduct, nonfeasance, misfeasance, malfeasance, or

22 violations of this Act or violations of other related laws and

23 rules.

24 (d) The compensation for each Executive Inspector General

25 shall be determined by the Executive Ethics Commission and

26 shall be made from appropriations made to the Comptroller for

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1 this purpose. Subject to Section 20-45 of this Act, each

2 Executive Inspector General has full authority to organize his

3 or her Office of the Executive Inspector General, including the

4 employment and determination of the compensation of staff, such

5 as deputies, assistants, and other employees, as

6 appropriations permit. A separate appropriation shall be made

7 for each Office of Executive Inspector General.

8 (e) No Executive Inspector General or employee of the

9 Office of the Executive Inspector General may, during his or

10 her term of appointment or employment:

11 (1) become a candidate for any elective office;

12 (2) hold any other elected or appointed public office

13 except for appointments on governmental advisory boards or

14 study commissions or as otherwise expressly authorized by

15 law;

16 (3) be actively involved in the affairs of any

17 political party or political organization; or

18 (4) advocate for the appointment of another person to

19 an appointed or elected office or position or actively

20 participate in any campaign for any elective office.

21 In this subsection an appointed public office means a

22 position authorized by law that is filled by an appointing

23 authority as provided by law and does not include employment by

24 hiring in the ordinary course of business.

25 (e-1) No Executive Inspector General or employee of the

26 Office of the Executive Inspector General may, for one year

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1 after the termination of his or her appointment or employment:

2 (1) become a candidate for any elective office;

3 (2) hold any elected public office; or

4 (3) hold any appointed State, county, or local judicial

5 office.

6 (e-2) The requirements of item (3) of subsection (e-1) may

7 be waived by the Executive Ethics Commission.

8 (f) An Executive Inspector General may be removed only for

9 cause and may be removed only by the appointing~~constitutional~~

10 officer. At the time of the removal, the appointing

11 ~~constitutional~~officer must report to the Executive Ethics

12 Commission the justification for the removal.

13 (Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)

14 Section 90-5. The Alcoholism and Other Drug Abuse and

15 Dependency Act is amended by changing Section 5-20 as follows:

16 (20 ILCS 301/5-20)

17 Sec. 5-20. Compulsive gambling program.

18 (a) Subject to appropriation, the Department shall

19 establish a program for public education, research, and

20 training regarding problem and compulsive gambling and the

21 treatment and prevention of problem and compulsive gambling.

22 Subject to specific appropriation for these stated purposes,

23 the program must include all of the following:

24 (1) Establishment and maintenance of a toll-free "800"

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1 telephone number to provide crisis counseling and referral

2 services to families experiencing difficulty as a result of

3 problem or compulsive gambling.

4 (2) Promotion of public awareness regarding the

5 recognition and prevention of problem and compulsive

6 gambling.

7 (3) Facilitation, through in-service training and

8 other means, of the availability of effective assistance

9 programs for problem and compulsive gamblers.

10 (4) Conducting studies to identify adults and

11 juveniles in this State who are, or who are at risk of

12 becoming, problem or compulsive gamblers.

13 (b) Subject to appropriation, the Department shall either

14 establish and maintain the program or contract with a private

15 or public entity for the establishment and maintenance of the

16 program. Subject to appropriation, either the Department or the

17 private or public entity shall implement the toll-free

18 telephone number, promote public awareness, and conduct

19 in-service training concerning problem and compulsive

20 gambling.

21 (c) Subject to appropriation, the Department shall produce

22 and supply the signs specified in Section 10.7 of the Illinois

23 Lottery Law, Section 34.1 of the Illinois Horse Racing Act of

24 1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1

25 of the Charitable Games Act, and Section 13.1 of the Illinois

26 ~~Riverboat~~Gambling Act.

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1 (Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)

2 Section 90-6. The Department of Commerce and Economic

3 Opportunity Law of the Civil Administrative Code of Illinois is

4 amended by adding Sections 605-530 and 605-535 as follows:

5 (20 ILCS 605/605-530 new)

6 Sec. 605-530. The Depressed Communities Economic

7 Development Board.

8 (a) The Depressed Communities Economic Development Board

9 is created as an advisory board within the Department of

10 Commerce and Economic Opportunity. The Board shall consist of

11 the following members:

12 (1) 3 members appointed by the Governor, one of whom

13 shall be appointed to serve an initial term of one year and

14 2 of whom shall be appointed to serve an initial term of 2

15 years;

16 (2) 2 members appointed by the Speaker of the House of

17 Representatives, one of whom shall be appointed to serve an

18 initial term of one year and one of whom shall be appointed

19 to serve an initial term of 2 years;

20 (3) 2 members appointed by the President of the Senate,

21 one of whom shall be appointed to serve an initial term of

22 one year and one of whom shall be appointed to serve an

23 initial term of 2 years;

24 (4) 2 members appointed by the Minority Leader of the

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1 House of Representatives, one of whom shall be appointed to

2 serve an initial term of one year and one of whom shall be

3 appointed to serve an initial term of 2 years; and

4 (5) 2 members appointed by the Minority Leader of the

5 Senate, one of whom shall be appointed to serve an initial

6 term of one year and one of whom shall be appointed to

7 serve an initial term of 2 years.

8 The members of the Board shall elect a member to serve as

9 chair of the Board. The members of the Board shall reflect the

10 composition of the Illinois population with regard to ethnic

11 and racial composition.

12 After the initial terms, each member shall be appointed to

13 serve a term of 2 years and until his or her successor has been

14 appointed and assumes office. If a vacancy occurs in the Board

15 membership, then the vacancy shall be filled in the same manner

16 as the initial appointment. No member of the Board shall, at

17 the time of his or her appointment or within 2 years before the

18 appointment, hold elected office or be appointed to a State

19 board, commission, or agency. All Board members are subject to

20 the State Officials and Employees Ethics Act.

21 (b) Board members shall serve without compensation, but may

22 be reimbursed for their reasonable travel expenses from funds

23 available for that purpose. The Department of Commerce and

24 Economic Opportunity shall provide staff and administrative

25 support services to the Board.

26 (c) The Board must make recommendations, which must be

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1 approved by a majority of the Board, to the Department of

2 Commerce and Economic Opportunity concerning the award of

3 grants from amounts appropriated to the Department from the

4 Depressed Communities Economic Development Fund, a special

5 fund created in the State treasury. The Department must make

6 grants to public or private entities submitting proposals to

7 the Board to revitalize an Illinois depressed community. Grants

8 may be used by these entities only for those purposes

9 conditioned with the grant. For the purposes of this subsection

10 (c), plans for revitalizing an Illinois depressed community

11 include plans intended to curb high levels of poverty,

12 unemployment, job and population loss, and general distress. An

13 Illinois depressed community is an area where the poverty rate,

14 as determined by using the most recent data released by the

15 United States Census Bureau, is at least 3% greater than the

16 State poverty rate as determined by using the most recent data

17 released by the United States Census Bureau.

18 (20 ILCS 605/605-535 new)

19 Sec. 605-535. The Commission on the Future of Economic

20 Development of the Latino Community.

21 (a) There is hereby created the Commission on the Future of

22 Economic Development of the Latino Community within the

23 Department. The purpose of the Commission shall be to maintain

24 and develop the economy of Latinos and to provide opportunities

25 for this community, which will enhance and expand the quality

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1 of their lives.

2 The Commission shall concentrate its major efforts on

3 strategic planning, policy research and analysis, advocacy,

4 evaluation, and promoting coordination and collaboration.

5 During each regular legislative session, the Commission

6 must consult with appropriate legislative committees about the

7 State's economic development needs and opportunities in the

8 Latino community.

9 By October 1st of each even-numbered year, the Commission

10 must submit to the Governor and the General Assembly a biennial

11 comprehensive statewide economic development strategy for the

12 Latino community with a report on progress from the previous

13 comprehensive strategy.

14 The comprehensive statewide economic development strategy

15 may include, but is not limited to:

16 (1) an assessment of the Latino community's economic

17 vitality;

18 (2) recommended goals, objectives, and priorities for

19 the next biennium and the future;

20 (3) a common set of outcomes and benchmarks for the

21 economic development system as a whole for the Latino

22 community;

23 (4) recommendations for removing barriers for Latinos

24 in employment;

25 (5) an inventory of existing relevant programs

26 compiled by the Commission from materials submitted by

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1 agencies;

2 (6) recommendations for expanding, discontinuing, or

3 redirecting existing programs or adding new programs to

4 better serve the Latino community; and

5 (7) recommendations of best practices and public and

6 private sector roles in implementing the comprehensive

7 statewide economic development strategy.

8 In developing the biennial statewide economic development

9 strategy, goals, objectives, priorities, and recommendations,

10 the Commission shall consult, collaborate, and coordinate with

11 relevant State agencies, private sector business, nonprofit

12 organizations involved in economic development, trade

13 associations, associate development organizations, and

14 relevant local organizations in order to avoid duplication of

15 effort.

16 State agencies shall cooperate with the Commission and

17 provide information as the Commission may reasonably request.

18 The Commission shall review and make budget

19 recommendations to the Governor's Office of Management and

20 Budget and the General Assembly in areas relating to the

21 economic development in the State's Latino community.

22 The Commission shall evaluate its own performance on a

23 regular basis.

24 The Commission may accept gifts, grants, donations,

25 sponsorships, or contributions from any federal, State, or

26 local governmental agency or program, or any private source,

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1 and expend the same for any purpose consistent with this

2 Section.

3 (b) The Commission shall consist of 12 voting members,

4 appointed by the Governor, 4 of whom shall be appointed to

5 serve an initial term of one year, 4 of whom shall be appointed

6 to serve an initial term of 2 years, and 4 of whom shall be

7 appointed to serve an initial term of 3 years. After the

8 initial term, each member shall be appointed to a term of 3

9 years. Members of the Commission shall serve at the pleasure of

10 the Governor for not more than 2 consecutive 3-year terms. In

11 appointing members, the Governor shall appoint individuals

12 from the following private industry sectors:

13 (1) production agriculture;

14 (2) at least 2 individuals from manufacturing, one of

15 whom shall represent a company with no more than 75

16 employees;

17 (3) transportation, construction, and logistics;

18 (4) travel and tourism;

19 (5) financial services and insurance;

20 (6) information technology and communications; and

21 (7) biotechnology.

22 The members of the Commission shall choose a member to

23 serve as chair of the Commission. The members of the Commission

24 shall be representative, to the extent possible, of the various

25 geographic areas of the State. The Director shall serve as an

26 ad hoc nonvoting member of the Commission. Vacancies shall be

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1 filled in the same manner as the original appointments. The

2 members of the Commission shall serve without compensation.

3 (c) The Commission shall meet at least 4 times per year,

4 with at least one meeting each calendar quarter, at the call of

5 the director or 4 voting members of the Commission. The staff

6 and support for the Commission shall be provided by the

7 Department.

8 (d) The Commission and Department are encouraged to involve

9 other essential groups in the work of the Commission,

10 including, but not limited to:

11 (1) public universities;

12 (2) community colleges;

13 (3) other educational institutions; and

14 (4) the Department of Labor.

15 (e) The Commission shall make recommendations, which must

16 be approved by a majority of the members of the Commission, to

17 the Department concerning the award of grants from amounts

18 appropriated to the Department from the Latino Community

19 Economic Development Fund, a special fund in the State

20 treasury. The Department shall make grants to public or private

21 entities submitting proposals to the Commission to assist in

22 the economic development of the Latino community. Grants may be

23 used by these entities only for those purposes conditioned with

24 the grant. The Commission shall coordinate with the Department

25 to develop grant criteria.

26 (f) For the purposes of this Section:

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1 "Department" means the Department of Commerce and Economic

2 Development.

3 "Director" means the Director of Commerce and Economic

4 Development.

5 "Educational institutions" means nonprofit public and

6 private colleges, community colleges, State colleges, and

7 universities in this State.

8 Section 90-8. The Illinois Lottery Law is amended by

9 changing Section 9.1 as follows:

10 (20 ILCS 1605/9.1)

11 Sec. 9.1. Private manager and management agreement.

12 (a) As used in this Section:

13 "Offeror" means a person or group of persons that responds

14 to a request for qualifications under this Section.

15 "Request for qualifications" means all materials and

16 documents prepared by the Department to solicit the following

17 from offerors:

18 (1) Statements of qualifications.

19 (2) Proposals to enter into a management agreement,

20 including the identity of any prospective vendor or vendors

21 that the offeror intends to initially engage to assist the

22 offeror in performing its obligations under the management

23 agreement.

24 "Final offer" means the last proposal submitted by an

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1 offeror in response to the request for qualifications,

2 including the identity of any prospective vendor or vendors

3 that the offeror intends to initially engage to assist the

4 offeror in performing its obligations under the management

5 agreement.

6 "Final offeror" means the offeror ultimately selected by

7 the Governor to be the private manager for the Lottery under

8 subsection (h) of this Section.

9 (b) By September 15, 2010, the Governor shall select a

10 private manager for the total management of the Lottery with

11 integrated functions, such as lottery game design, supply of

12 goods and services, and advertising and as specified in this

13 Section.

14 (c) Pursuant to the terms of this subsection, the

15 Department shall endeavor to expeditiously terminate the

16 existing contracts in support of the Lottery in effect on the

17 effective date of this amendatory Act of the 96th General

18 Assembly in connection with the selection of the private

19 manager. As part of its obligation to terminate these contracts

20 and select the private manager, the Department shall establish

21 a mutually agreeable timetable to transfer the functions of

22 existing contractors to the private manager so that existing

23 Lottery operations are not materially diminished or impaired

24 during the transition. To that end, the Department shall do the

25 following:

26 (1) where such contracts contain a provision

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1 authorizing termination upon notice, the Department shall

2 provide notice of termination to occur upon the mutually

3 agreed timetable for transfer of functions;

4 (2) upon the expiration of any initial term or renewal

5 term of the current Lottery contracts, the Department shall

6 not renew such contract for a term extending beyond the

7 mutually agreed timetable for transfer of functions; or

8 (3) in the event any current contract provides for

9 termination of that contract upon the implementation of a

10 contract with the private manager, the Department shall

11 perform all necessary actions to terminate the contract on

12 the date that coincides with the mutually agreed timetable

13 for transfer of functions.

14 If the contracts to support the current operation of the

15 Lottery in effect on the effective date of this amendatory Act

16 of the 96th General Assembly are not subject to termination as

17 provided for in this subsection (c), then the Department may

18 include a provision in the contract with the private manager

19 specifying a mutually agreeable methodology for incorporation.

20 (c-5) The Department shall include provisions in the

21 management agreement whereby the private manager shall, for a

22 fee, and pursuant to a contract negotiated with the Department

23 (the "Employee Use Contract"), utilize the services of current

24 Department employees to assist in the administration and

25 operation of the Lottery. The Department shall be the employer

26 of all such bargaining unit employees assigned to perform such

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1 work for the private manager, and such employees shall be State

2 employees, as defined by the Personnel Code. Department

3 employees shall operate under the same employment policies,

4 rules, regulations, and procedures, as other employees of the

5 Department. In addition, neither historical representation

6 rights under the Illinois Public Labor Relations Act, nor

7 existing collective bargaining agreements, shall be disturbed

8 by the management agreement with the private manager for the

9 management of the Lottery.

10 (d) The management agreement with the private manager shall

11 include all of the following:

12 (1) A term not to exceed 10 years, including any

13 renewals.

14 (2) A provision specifying that the Department:

15 (A) shall exercise actual control over all

16 significant business decisions;

17 (A-5) has the authority to direct or countermand

18 operating decisions by the private manager at any time;

19 (B) has ready access at any time to information

20 regarding Lottery operations;

21 (C) has the right to demand and receive information

22 from the private manager concerning any aspect of the

23 Lottery operations at any time; and

24 (D) retains ownership of all trade names,

25 trademarks, and intellectual property associated with

26 the Lottery.

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1 (3) A provision imposing an affirmative duty on the

2 private manager to provide the Department with material

3 information and with any information the private manager

4 reasonably believes the Department would want to know to

5 enable the Department to conduct the Lottery.

6 (4) A provision requiring the private manager to

7 provide the Department with advance notice of any operating

8 decision that bears significantly on the public interest,

9 including, but not limited to, decisions on the kinds of

10 games to be offered to the public and decisions affecting

11 the relative risk and reward of the games being offered, so

12 the Department has a reasonable opportunity to evaluate and

13 countermand that decision.

14 (5) A provision providing for compensation of the

15 private manager that may consist of, among other things, a

16 fee for services and a performance based bonus as

17 consideration for managing the Lottery, including terms

18 that may provide the private manager with an increase in

19 compensation if Lottery revenues grow by a specified

20 percentage in a given year.

21 (6) (Blank).

22 (7) A provision requiring the deposit of all Lottery

23 proceeds to be deposited into the State Lottery Fund except

24 as otherwise provided in Section 20 of this Act.

25 (8) A provision requiring the private manager to locate

26 its principal office within the State.

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1 (8-5) A provision encouraging that at least 20% of the

2 cost of contracts entered into for goods and services by

3 the private manager in connection with its management of

4 the Lottery, other than contracts with sales agents or

5 technical advisors, be awarded to businesses that are a

6 minority owned business, a female owned business, or a

7 business owned by a person with disability, as those terms

8 are defined in the Business Enterprise for Minorities,

9 Females, and Persons with Disabilities Act.

10 (9) A requirement that so long as the private manager

11 complies with all the conditions of the agreement under the

12 oversight of the Department, the private manager shall have

13 the following duties and obligations with respect to the

14 management of the Lottery:

15 (A) The right to use equipment and other assets

16 used in the operation of the Lottery.

17 (B) The rights and obligations under contracts

18 with retailers and vendors.

19 (C) The implementation of a comprehensive security

20 program by the private manager.

21 (D) The implementation of a comprehensive system

22 of internal audits.

23 (E) The implementation of a program by the private

24 manager to curb compulsive gambling by persons playing

25 the Lottery.

26 (F) A system for determining (i) the type of

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1 Lottery games, (ii) the method of selecting winning

2 tickets, (iii) the manner of payment of prizes to

3 holders of winning tickets, (iv) the frequency of

4 drawings of winning tickets, (v) the method to be used

5 in selling tickets, (vi) a system for verifying the

6 validity of tickets claimed to be winning tickets,

7 (vii) the basis upon which retailer commissions are

8 established by the manager, and (viii) minimum

9 payouts.

10 (10) A requirement that advertising and promotion must

11 be consistent with Section 7.8a of this Act.

12 (11) A requirement that the private manager market the

13 Lottery to those residents who are new, infrequent, or

14 lapsed players of the Lottery, especially those who are

15 most likely to make regular purchases on the Internet as

16 permitted by law.

17 (12) A code of ethics for the private manager's

18 officers and employees.

19 (13) A requirement that the Department monitor and

20 oversee the private manager's practices and take action

21 that the Department considers appropriate to ensure that

22 the private manager is in compliance with the terms of the

23 management agreement, while allowing the manager, unless

24 specifically prohibited by law or the management

25 agreement, to negotiate and sign its own contracts with

26 vendors.

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1 (14) A provision requiring the private manager to

2 periodically file, at least on an annual basis, appropriate

3 financial statements in a form and manner acceptable to the

4 Department.

5 (15) Cash reserves requirements.

6 (16) Procedural requirements for obtaining the prior

7 approval of the Department when a management agreement or

8 an interest in a management agreement is sold, assigned,

9 transferred, or pledged as collateral to secure financing.

10 (17) Grounds for the termination of the management

11 agreement by the Department or the private manager.

12 (18) Procedures for amendment of the agreement.

13 (19) A provision requiring the private manager to

14 engage in an open and competitive bidding process for any

15 procurement having a cost in excess of $50,000 that is not

16 a part of the private manager's final offer. The process

17 shall favor the selection of a vendor deemed to have

18 submitted a proposal that provides the Lottery with the

19 best overall value. The process shall not be subject to the

20 provisions of the Illinois Procurement Code, unless

21 specifically required by the management agreement.

22 (20) The transition of rights and obligations,

23 including any associated equipment or other assets used in

24 the operation of the Lottery, from the manager to any

25 successor manager of the lottery, including the

26 Department, following the termination of or foreclosure

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1 upon the management agreement.

2 (21) Right of use of copyrights, trademarks, and

3 service marks held by the Department in the name of the

4 State. The agreement must provide that any use of them by

5 the manager shall only be for the purpose of fulfilling its

6 obligations under the management agreement during the term

7 of the agreement.

8 (22) The disclosure of any information requested by the

9 Department to enable it to comply with the reporting

10 requirements and information requests provided for under

11 subsection (p) of this Section.

12 (e) Notwithstanding any other law to the contrary, the

13 Department shall select a private manager through a competitive

14 request for qualifications process consistent with Section

15 20-35 of the Illinois Procurement Code, which shall take into

16 account:

17 (1) the offeror's ability to market the Lottery to

18 those residents who are new, infrequent, or lapsed players

19 of the Lottery, especially those who are most likely to

20 make regular purchases on the Internet;

21 (2) the offeror's ability to address the State's

22 concern with the social effects of gambling on those who

23 can least afford to do so;

24 (3) the offeror's ability to provide the most

25 successful management of the Lottery for the benefit of the

26 people of the State based on current and past business

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1 practices or plans of the offeror; and

2 (4) the offeror's poor or inadequate past performance

3 in servicing, equipping, operating or managing a lottery on

4 behalf of Illinois, another State or foreign government and

5 attracting persons who are not currently regular players of

6 a lottery.

7 (f) The Department may retain the services of an advisor or

8 advisors with significant experience in financial services or

9 the management, operation, and procurement of goods, services,

10 and equipment for a government-run lottery to assist in the

11 preparation of the terms of the request for qualifications and

12 selection of the private manager. Any prospective advisor

13 seeking to provide services under this subsection (f) shall

14 disclose any material business or financial relationship

15 during the past 3 years with any potential offeror, or with a

16 contractor or subcontractor presently providing goods,

17 services, or equipment to the Department to support the

18 Lottery. The Department shall evaluate the material business or

19 financial relationship of each prospective advisor. The

20 Department shall not select any prospective advisor with a

21 substantial business or financial relationship that the

22 Department deems to impair the objectivity of the services to

23 be provided by the prospective advisor. During the course of

24 the advisor's engagement by the Department, and for a period of

25 one year thereafter, the advisor shall not enter into any

26 business or financial relationship with any offeror or any

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1 vendor identified to assist an offeror in performing its

2 obligations under the management agreement. Any advisor

3 retained by the Department shall be disqualified from being an

4 offeror. The Department shall not include terms in the request

5 for qualifications that provide a material advantage whether

6 directly or indirectly to any potential offeror, or any

7 contractor or subcontractor presently providing goods,

8 services, or equipment to the Department to support the

9 Lottery, including terms contained in previous responses to

10 requests for proposals or qualifications submitted to

11 Illinois, another State or foreign government when those terms

12 are uniquely associated with a particular potential offeror,

13 contractor, or subcontractor. The request for proposals

14 offered by the Department on December 22, 2008 as

15 "LOT08GAMESYS" and reference number "22016176" is declared

16 void.

17 (g) The Department shall select at least 2 offerors as

18 finalists to potentially serve as the private manager no later

19 than August 9, 2010. Upon making preliminary selections, the

20 Department shall schedule a public hearing on the finalists'

21 proposals and provide public notice of the hearing at least 7

22 calendar days before the hearing. The notice must include all

23 of the following:

24 (1) The date, time, and place of the hearing.

25 (2) The subject matter of the hearing.

26 (3) A brief description of the management agreement to

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1 be awarded.

2 (4) The identity of the offerors that have been

3 selected as finalists to serve as the private manager.

4 (5) The address and telephone number of the Department.

5 (h) At the public hearing, the Department shall (i) provide

6 sufficient time for each finalist to present and explain its

7 proposal to the Department and the Governor or the Governor's

8 designee, including an opportunity to respond to questions

9 posed by the Department, Governor, or designee and (ii) allow

10 the public and non-selected offerors to comment on the

11 presentations. The Governor or a designee shall attend the

12 public hearing. After the public hearing, the Department shall

13 have 14 calendar days to recommend to the Governor whether a

14 management agreement should be entered into with a particular

15 finalist. After reviewing the Department's recommendation, the

16 Governor may accept or reject the Department's recommendation,

17 and shall select a final offeror as the private manager by

18 publication of a notice in the Illinois Procurement Bulletin on

19 or before September 15, 2010. The Governor shall include in the

20 notice a detailed explanation and the reasons why the final

21 offeror is superior to other offerors and will provide

22 management services in a manner that best achieves the

23 objectives of this Section. The Governor shall also sign the

24 management agreement with the private manager.

25 (i) Any action to contest the private manager selected by

26 the Governor under this Section must be brought within 7

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1 calendar days after the publication of the notice of the

2 designation of the private manager as provided in subsection

3 (h) of this Section.

4 (j) The Lottery shall remain, for so long as a private

5 manager manages the Lottery in accordance with provisions of

6 this Act, a Lottery conducted by the State, and the State shall

7 not be authorized to sell or transfer the Lottery to a third

8 party.

9 (k) Any tangible personal property used exclusively in

10 connection with the lottery that is owned by the Department and

11 leased to the private manager shall be owned by the Department

12 in the name of the State and shall be considered to be public

13 property devoted to an essential public and governmental

14 function.

15 (l) The Department may exercise any of its powers under

16 this Section or any other law as necessary or desirable for the

17 execution of the Department's powers under this Section.

18 (m) Neither this Section nor any management agreement

19 entered into under this Section prohibits the General Assembly

20 from authorizing forms of gambling that are not in direct

21 competition with the Lottery. The forms of gambling authorized

22 by this amendatory Act of the 100th General Assembly constitute

23 authorized forms of gambling that are not in direct competition

24 with the Lottery.

25 (n) The private manager shall be subject to a complete

26 investigation in the third, seventh, and tenth years of the

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1 agreement (if the agreement is for a 10-year term) by the

2 Department in cooperation with the Auditor General to determine

3 whether the private manager has complied with this Section and

4 the management agreement. The private manager shall bear the

5 cost of an investigation or reinvestigation of the private

6 manager under this subsection.

7 (o) The powers conferred by this Section are in addition

8 and supplemental to the powers conferred by any other law. If

9 any other law or rule is inconsistent with this Section,

10 including, but not limited to, provisions of the Illinois

11 Procurement Code, then this Section controls as to any

12 management agreement entered into under this Section. This

13 Section and any rules adopted under this Section contain full

14 and complete authority for a management agreement between the

15 Department and a private manager. No law, procedure,

16 proceeding, publication, notice, consent, approval, order, or

17 act by the Department or any other officer, Department, agency,

18 or instrumentality of the State or any political subdivision is

19 required for the Department to enter into a management

20 agreement under this Section. This Section contains full and

21 complete authority for the Department to approve any contracts

22 entered into by a private manager with a vendor providing

23 goods, services, or both goods and services to the private

24 manager under the terms of the management agreement, including

25 subcontractors of such vendors.

26 Upon receipt of a written request from the Chief

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1 Procurement Officer, the Department shall provide to the Chief

2 Procurement Officer a complete and un-redacted copy of the

3 management agreement or any contract that is subject to the

4 Department's approval authority under this subsection (o). The

5 Department shall provide a copy of the agreement or contract to

6 the Chief Procurement Officer in the time specified by the

7 Chief Procurement Officer in his or her written request, but no

8 later than 5 business days after the request is received by the

9 Department. The Chief Procurement Officer must retain any

10 portions of the management agreement or of any contract

11 designated by the Department as confidential, proprietary, or

12 trade secret information in complete confidence pursuant to

13 subsection (g) of Section 7 of the Freedom of Information Act.

14 The Department shall also provide the Chief Procurement Officer

15 with reasonable advance written notice of any contract that is

16 pending Department approval.

17 Notwithstanding any other provision of this Section to the

18 contrary, the Chief Procurement Officer shall adopt

19 administrative rules, including emergency rules, to establish

20 a procurement process to select a successor private manager if

21 a private management agreement has been terminated. The

22 selection process shall at a minimum take into account the

23 criteria set forth in items (1) through (4) of subsection (e)

24 of this Section and may include provisions consistent with

25 subsections (f), (g), (h), and (i) of this Section. The Chief

26 Procurement Officer shall also implement and administer the

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1 adopted selection process upon the termination of a private

2 management agreement. The Department, after the Chief

3 Procurement Officer certifies that the procurement process has

4 been followed in accordance with the rules adopted under this

5 subsection (o), shall select a final offeror as the private

6 manager and sign the management agreement with the private

7 manager.

8 Except as provided in Sections 21.2, 21.5, 21.6, 21.7,

9 21.8, and 21.9, the Department shall distribute all proceeds of

10 lottery tickets and shares sold in the following priority and

11 manner:

12 (1) The payment of prizes and retailer bonuses.

13 (2) The payment of costs incurred in the operation and

14 administration of the Lottery, including the payment of

15 sums due to the private manager under the management

16 agreement with the Department.

17 (3) On the last day of each month or as soon thereafter

18 as possible, the State Comptroller shall direct and the

19 State Treasurer shall transfer from the State Lottery Fund

20 to the Common School Fund an amount that is equal to the

21 proceeds transferred in the corresponding month of fiscal

22 year 2009, as adjusted for inflation, to the Common School

23 Fund.

24 (4) On or before the last day of each fiscal year,

25 deposit any remaining proceeds, subject to payments under

26 items (1), (2), and (3) into the Capital Projects Fund each

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1 fiscal year.

2 (p) The Department shall be subject to the following

3 reporting and information request requirements:

4 (1) the Department shall submit written quarterly

5 reports to the Governor and the General Assembly on the

6 activities and actions of the private manager selected

7 under this Section;

8 (2) upon request of the Chief Procurement Officer, the

9 Department shall promptly produce information related to

10 the procurement activities of the Department and the

11 private manager requested by the Chief Procurement

12 Officer; the Chief Procurement Officer must retain

13 confidential, proprietary, or trade secret information

14 designated by the Department in complete confidence

15 pursuant to subsection (g) of Section 7 of the Freedom of

16 Information Act; and

17 (3) at least 30 days prior to the beginning of the

18 Department's fiscal year, the Department shall prepare an

19 annual written report on the activities of the private

20 manager selected under this Section and deliver that report

21 to the Governor and General Assembly.

22 (Source: P.A. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13;

23 98-649, eff. 6-16-14.)

24 Section 90-10. The Department of Revenue Law of the Civil

25 Administrative Code of Illinois is amended by changing Section

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1 2505-305 as follows:

2 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)

3 Sec. 2505-305. Investigators.

4 (a) The Department has the power to appoint investigators

5 to conduct all investigations, searches, seizures, arrests,

6 and other duties imposed under the provisions of any law

7 administered by the Department. Except as provided in

8 subsection (c), these investigators have and may exercise all

9 the powers of peace officers solely for the purpose of

10 enforcing taxing measures administered by the Department.

11 (b) The Director must authorize to each investigator

12 employed under this Section and to any other employee of the

13 Department exercising the powers of a peace officer a distinct

14 badge that, on its face, (i) clearly states that the badge is

15 authorized by the Department and (ii) contains a unique

16 identifying number. No other badge shall be authorized by the

17 Department.

18 (c) The Department may enter into agreements with the

19 Illinois Gaming Board providing that investigators appointed

20 under this Section shall exercise the peace officer powers set

21 forth in paragraph (20.6) of subsection (c) of Section 5 of the

22 Illinois ~~Riverboat~~Gambling Act.

23 (Source: P.A. 96-37, eff. 7-13-09.)

24 Section 90-12. The Illinois State Auditing Act is amended

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1 by changing Section 3-1 as follows:

2 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)

3 Sec. 3-1. Jurisdiction of Auditor General. The Auditor

4 General has jurisdiction over all State agencies to make post

5 audits and investigations authorized by or under this Act or

6 the Constitution.

7 The Auditor General has jurisdiction over local government

8 agencies and private agencies only:

9 (a) to make such post audits authorized by or under

10 this Act as are necessary and incidental to a post audit of

11 a State agency or of a program administered by a State

12 agency involving public funds of the State, but this

13 jurisdiction does not include any authority to review local

14 governmental agencies in the obligation, receipt,

15 expenditure or use of public funds of the State that are

16 granted without limitation or condition imposed by law,

17 other than the general limitation that such funds be used

18 for public purposes;

19 (b) to make investigations authorized by or under this

20 Act or the Constitution; and

21 (c) to make audits of the records of local government

22 agencies to verify actual costs of state-mandated programs

23 when directed to do so by the Legislative Audit Commission

24 at the request of the State Board of Appeals under the

25 State Mandates Act.

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1 In addition to the foregoing, the Auditor General may

2 conduct an audit of the Metropolitan Pier and Exposition

3 Authority, the Regional Transportation Authority, the Suburban

4 Bus Division, the Commuter Rail Division and the Chicago

5 Transit Authority and any other subsidized carrier when

6 authorized by the Legislative Audit Commission. Such audit may

7 be a financial, management or program audit, or any combination

8 thereof.

9 The audit shall determine whether they are operating in

10 accordance with all applicable laws and regulations. Subject to

11 the limitations of this Act, the Legislative Audit Commission

12 may by resolution specify additional determinations to be

13 included in the scope of the audit.

14 In addition to the foregoing, the Auditor General must also

15 conduct a financial audit of the Illinois Sports Facilities

16 Authority's expenditures of public funds in connection with the

17 reconstruction, renovation, remodeling, extension, or

18 improvement of all or substantially all of any existing

19 "facility", as that term is defined in the Illinois Sports

20 Facilities Authority Act.

21 The Auditor General may also conduct an audit, when

22 authorized by the Legislative Audit Commission, of any hospital

23 which receives 10% or more of its gross revenues from payments

24 from the State of Illinois, Department of Healthcare and Family

25 Services (formerly Department of Public Aid), Medical

26 Assistance Program.

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1 The Auditor General is authorized to conduct financial and

2 compliance audits of the Illinois Distance Learning Foundation

3 and the Illinois Conservation Foundation.

4 As soon as practical after the effective date of this

5 amendatory Act of 1995, the Auditor General shall conduct a

6 compliance and management audit of the City of Chicago and any

7 other entity with regard to the operation of Chicago O'Hare

8 International Airport, Chicago Midway Airport and Merrill C.

9 Meigs Field. The audit shall include, but not be limited to, an

10 examination of revenues, expenses, and transfers of funds;

11 purchasing and contracting policies and practices; staffing

12 levels; and hiring practices and procedures. When completed,

13 the audit required by this paragraph shall be distributed in

14 accordance with Section 3-14.

15 The Auditor General shall conduct a financial and

16 compliance and program audit of distributions from the

17 Municipal Economic Development Fund during the immediately

18 preceding calendar year pursuant to Section 8-403.1 of the

19 Public Utilities Act at no cost to the city, village, or

20 incorporated town that received the distributions.

21 The Auditor General must conduct an audit of the Health

22 Facilities and Services Review Board pursuant to Section 19.5

23 of the Illinois Health Facilities Planning Act.

24 The Auditor General must conduct an audit of the Chicago

25 Casino Development Authority pursuant to Section 1-60 of the

26 Chicago Casino Development Authority Act.

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1 The Auditor General of the State of Illinois shall annually

2 conduct or cause to be conducted a financial and compliance

3 audit of the books and records of any county water commission

4 organized pursuant to the Water Commission Act of 1985 and

5 shall file a copy of the report of that audit with the Governor

6 and the Legislative Audit Commission. The filed audit shall be

7 open to the public for inspection. The cost of the audit shall

8 be charged to the county water commission in accordance with

9 Section 6z-27 of the State Finance Act. The county water

10 commission shall make available to the Auditor General its

11 books and records and any other documentation, whether in the

12 possession of its trustees or other parties, necessary to

13 conduct the audit required. These audit requirements apply only

14 through July 1, 2007.

15 The Auditor General must conduct audits of the Rend Lake

16 Conservancy District as provided in Section 25.5 of the River

17 Conservancy Districts Act.

18 The Auditor General must conduct financial audits of the

19 Southeastern Illinois Economic Development Authority as

20 provided in Section 70 of the Southeastern Illinois Economic

21 Development Authority Act.

22 The Auditor General shall conduct a compliance audit in

23 accordance with subsections (d) and (f) of Section 30 of the

24 Innovation Development and Economy Act.

25 (Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;

26 96-939, eff. 6-24-10.)

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1 Section 90-15. The State Finance Act is amended by adding

2 Sections 5.878, 5.879, 5.880, 5.881, 6z-102, and 6z-103 and by

3 changing Section 6z-45 as follows:

4 (30 ILCS 105/5.878 new)

5 Sec. 5.878. The Gaming Facilities Fee Revenue Fund.

6 (30 ILCS 105/5.879 new)

7 Sec. 5.879. The State Fairgrounds Capital Improvement

8 Fund.

9 (30 ILCS 105/5.880 new)

10 Sec. 5.880. The Depressed Communities Economic Development

11 Fund.

12 (30 ILCS 105/5.881 new)

13 Sec. 5.881. The Latino Community Economic Development

14 Fund.

15 (30 ILCS 105/6z-45)

16 Sec. 6z-45. The School Infrastructure Fund.

17 (a) The School Infrastructure Fund is created as a special

18 fund in the State Treasury.

19 In addition to any other deposits authorized by law,

20 beginning January 1, 2000, on the first day of each month, or

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1 as soon thereafter as may be practical, the State Treasurer and

2 State Comptroller shall transfer the sum of $5,000,000 from the

3 General Revenue Fund to the School Infrastructure Fund, except

4 that, notwithstanding any other provision of law, and in

5 addition to any other transfers that may be provided for by

6 law, before June 30, 2012, the Comptroller and the Treasurer

7 shall transfer $45,000,000 from the General Revenue Fund into

8 the School Infrastructure Fund, and, for fiscal year 2013 only,

9 the Treasurer and the Comptroller shall transfer $1,250,000

10 from the General Revenue Fund to the School Infrastructure Fund

11 on the first day of each month; provided, however, that no such

12 transfers shall be made from July 1, 2001 through June 30,

13 2003.

14 (b) Subject to the transfer provisions set forth below,

15 money in the School Infrastructure Fund shall, if and when the

16 State of Illinois incurs any bonded indebtedness for the

17 construction of school improvements under the School

18 Construction Law, be set aside and used for the purpose of

19 paying and discharging annually the principal and interest on

20 that bonded indebtedness then due and payable, and for no other

21 purpose.

22 In addition to other transfers to the General Obligation

23 Bond Retirement and Interest Fund made pursuant to Section 15

24 of the General Obligation Bond Act, upon each delivery of bonds

25 issued for construction of school improvements under the School

26 Construction Law, the State Comptroller shall compute and

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1 certify to the State Treasurer the total amount of principal

2 of, interest on, and premium, if any, on such bonds during the

3 then current and each succeeding fiscal year. With respect to

4 the interest payable on variable rate bonds, such

5 certifications shall be calculated at the maximum rate of

6 interest that may be payable during the fiscal year, after

7 taking into account any credits permitted in the related

8 indenture or other instrument against the amount of such

9 interest required to be appropriated for that period.

10 On or before the last day of each month, the State

11 Treasurer and State Comptroller shall transfer from the School

12 Infrastructure Fund to the General Obligation Bond Retirement

13 and Interest Fund an amount sufficient to pay the aggregate of

14 the principal of, interest on, and premium, if any, on the

15 bonds payable on their next payment date, divided by the number

16 of monthly transfers occurring between the last previous

17 payment date (or the delivery date if no payment date has yet

18 occurred) and the next succeeding payment date. Interest

19 payable on variable rate bonds shall be calculated at the

20 maximum rate of interest that may be payable for the relevant

21 period, after taking into account any credits permitted in the

22 related indenture or other instrument against the amount of

23 such interest required to be appropriated for that period.

24 Interest for which moneys have already been deposited into the

25 capitalized interest account within the General Obligation

26 Bond Retirement and Interest Fund shall not be included in the

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1 calculation of the amounts to be transferred under this

2 subsection.

3 (b-5) The money deposited into the School Infrastructure

4 Fund from transfers pursuant to subsections (c-30) and (c-35)

5 of Section 13 of the Illinois ~~Riverboat~~ Gambling Act shall be

6 applied, without further direction, as provided in subsection

7 (b-3) of Section 5-35 of the School Construction Law.

8 (c) The surplus, if any, in the School Infrastructure Fund

9 after payments made pursuant to subsections (b) and (b-5) of

10 this Section shall, subject to appropriation, be used as

11 follows:

12 First - to make 3 payments to the School Technology

13 Revolving Loan Fund as follows:

14 Transfer of $30,000,000 in fiscal year 1999;

15 Transfer of $20,000,000 in fiscal year 2000; and

16 Transfer of $10,000,000 in fiscal year 2001.

17 Second - to pay the expenses of the State Board of

18 Education and the Capital Development Board in administering

19 programs under the School Construction Law, the total expenses

20 not to exceed $1,200,000 in any fiscal year.

21 Third - to pay any amounts due for grants for school

22 construction projects and debt service under the School

23 Construction Law.

24 Fourth - to pay any amounts due for grants for school

25 maintenance projects under the School Construction Law.

26 (Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)

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1 (30 ILCS 105/6z-102 new)

2 Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.

3 (a) The Gaming Facilities Fee Revenue Fund is created as a

4 special fund in the State treasury.

5 (b) The revenues in the Fund shall be used, subject to

6 appropriation, by the Comptroller for the purpose of (i)

7 providing appropriations to the Illinois Gaming Board for the

8 administration and enforcement of the Illinois Gambling Act and

9 the applicable provisions of the Chicago Casino Development

10 Authority Act and (ii) payment of vouchers that are outstanding

11 for more than 60 days. Whenever practical, the Comptroller must

12 prioritize voucher payments for expenses related to medical

13 assistance under the Illinois Public Aid Code, the Children's

14 Health Insurance Program Act, the Covering ALL KIDS Health

15 Insurance Act, and the Senior Citizens and Disabled Persons

16 Property Tax Relief and Pharmaceutical Assistance Act.

17 (c) The Fund shall consist of fee revenues received

18 pursuant to subsection (e) of Section 1-45 of the Chicago

19 Casino Development Authority Act and pursuant to subsections

20 (e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections

21 (b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling

22 Act. All interest earned on moneys in the Fund shall be

23 deposited into the Fund.

24 (d) The Fund shall not be subject to administrative charges

25 or chargebacks, including, but not limited to, those authorized

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1 under subsection (h) of Section 8 of this Act.

2 (30 ILCS 105/6z-103 new)

3 Sec. 6z-103. The State Fairgrounds Capital Improvement

4 Fund. There is created the State Fairgrounds Capital

5 Improvement Fund, a special fund in the State treasury. Moneys

6 in the Fund may be used by the Department of Agriculture,

7 subject to appropriation, solely for infrastructure

8 improvements to the Illinois State Fairgrounds in Sangamon

9 County, including, but not limited to, track surfaces (main

10 track and practice track), grandstands, audio and visual

11 systems, paddocks and barns and associated surface areas,

12 restroom facilities on the backstretch, and roadway surfaces

13 around the racing facility. In addition, no more than 5% of the

14 moneys annually transferred into the Fund may be used by the

15 Department for all costs associated with fire protection and

16 fire protection services for the Illinois State Fairgrounds.

17 The State Fairgrounds Capital Improvement Fund is not subject

18 to administrative chargebacks, including, but not limited to,

19 those authorized under Section 8h of the State Finance Act.

20 Section 90-20. The Illinois Income Tax Act is amended by

21 changing Sections 201, 303, 304 and 710 as follows:

22 (35 ILCS 5/201) (from Ch. 120, par. 2-201)

23 Sec. 201. Tax Imposed.

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1 (a) In general. A tax measured by net income is hereby

2 imposed on every individual, corporation, trust and estate for

3 each taxable year ending after July 31, 1969 on the privilege

4 of earning or receiving income in or as a resident of this

5 State. Such tax shall be in addition to all other occupation or

6 privilege taxes imposed by this State or by any municipal

7 corporation or political subdivision thereof.

8 (b) Rates. The tax imposed by subsection (a) of this

9 Section shall be determined as follows, except as adjusted by

10 subsection (d-1):

11 (1) In the case of an individual, trust or estate, for

12 taxable years ending prior to July 1, 1989, an amount equal

13 to 2 1/2% of the taxpayer's net income for the taxable

14 year.

15 (2) In the case of an individual, trust or estate, for

16 taxable years beginning prior to July 1, 1989 and ending

17 after June 30, 1989, an amount equal to the sum of (i) 2

18 1/2% of the taxpayer's net income for the period prior to

19 July 1, 1989, as calculated under Section 202.3, and (ii)

20 3% of the taxpayer's net income for the period after June

21 30, 1989, as calculated under Section 202.3.

22 (3) In the case of an individual, trust or estate, for

23 taxable years beginning after June 30, 1989, and ending

24 prior to January 1, 2011, an amount equal to 3% of the

25 taxpayer's net income for the taxable year.

26 (4) In the case of an individual, trust, or estate, for

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1 taxable years beginning prior to January 1, 2011, and

2 ending after December 31, 2010, an amount equal to the sum

3 of (i) 3% of the taxpayer's net income for the period prior

4 to January 1, 2011, as calculated under Section 202.5, and

5 (ii) 5% of the taxpayer's net income for the period after

6 December 31, 2010, as calculated under Section 202.5.

7 (5) In the case of an individual, trust, or estate, for

8 taxable years beginning on or after January 1, 2011, and

9 ending prior to January 1, 2015, an amount equal to 5% of

10 the taxpayer's net income for the taxable year.

11 (5.1) In the case of an individual, trust, or estate,

12 for taxable years beginning prior to January 1, 2015, and

13 ending after December 31, 2014, an amount equal to the sum

14 of (i) 5% of the taxpayer's net income for the period prior

15 to January 1, 2015, as calculated under Section 202.5, and

16 (ii) 3.75% of the taxpayer's net income for the period

17 after December 31, 2014, as calculated under Section 202.5.

18 (5.2) In the case of an individual, trust, or estate,

19 for taxable years beginning on or after January 1, 2015,

20 and ending prior to January 1, 2025, an amount equal to

21 3.75% of the taxpayer's net income for the taxable year.

22 (5.3) In the case of an individual, trust, or estate,

23 for taxable years beginning prior to January 1, 2025, and

24 ending after December 31, 2024, an amount equal to the sum

25 of (i) 3.75% of the taxpayer's net income for the period

26 prior to January 1, 2025, as calculated under Section

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1 202.5, and (ii) 3.25% of the taxpayer's net income for the

2 period after December 31, 2024, as calculated under Section

3 202.5.

4 (5.4) In the case of an individual, trust, or estate,

5 for taxable years beginning on or after January 1, 2025, an

6 amount equal to 3.25% of the taxpayer's net income for the

7 taxable year.

8 (6) In the case of a corporation, for taxable years

9 ending prior to July 1, 1989, an amount equal to 4% of the

10 taxpayer's net income for the taxable year.

11 (7) In the case of a corporation, for taxable years

12 beginning prior to July 1, 1989 and ending after June 30,

13 1989, an amount equal to the sum of (i) 4% of the

14 taxpayer's net income for the period prior to July 1, 1989,

15 as calculated under Section 202.3, and (ii) 4.8% of the

16 taxpayer's net income for the period after June 30, 1989,

17 as calculated under Section 202.3.

18 (8) In the case of a corporation, for taxable years

19 beginning after June 30, 1989, and ending prior to January

20 1, 2011, an amount equal to 4.8% of the taxpayer's net

21 income for the taxable year.

22 (9) In the case of a corporation, for taxable years

23 beginning prior to January 1, 2011, and ending after

24 December 31, 2010, an amount equal to the sum of (i) 4.8%

25 of the taxpayer's net income for the period prior to

26 January 1, 2011, as calculated under Section 202.5, and

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1 (ii) 7% of the taxpayer's net income for the period after

2 December 31, 2010, as calculated under Section 202.5.

3 (10) In the case of a corporation, for taxable years

4 beginning on or after January 1, 2011, and ending prior to

5 January 1, 2015, an amount equal to 7% of the taxpayer's

6 net income for the taxable year.

7 (11) In the case of a corporation, for taxable years

8 beginning prior to January 1, 2015, and ending after

9 December 31, 2014, an amount equal to the sum of (i) 7% of

10 the taxpayer's net income for the period prior to January

11 1, 2015, as calculated under Section 202.5, and (ii) 5.25%

12 of the taxpayer's net income for the period after December

13 31, 2014, as calculated under Section 202.5.

14 (12) In the case of a corporation, for taxable years

15 beginning on or after January 1, 2015, and ending prior to

16 January 1, 2025, an amount equal to 5.25% of the taxpayer's

17 net income for the taxable year.

18 (13) In the case of a corporation, for taxable years

19 beginning prior to January 1, 2025, and ending after

20 December 31, 2024, an amount equal to the sum of (i) 5.25%

21 of the taxpayer's net income for the period prior to

22 January 1, 2025, as calculated under Section 202.5, and

23 (ii) 4.8% of the taxpayer's net income for the period after

24 December 31, 2024, as calculated under Section 202.5.

25 (14) In the case of a corporation, for taxable years

26 beginning on or after January 1, 2025, an amount equal to

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1 4.8% of the taxpayer's net income for the taxable year.

2 The rates under this subsection (b) are subject to the

3 provisions of Section 201.5.

4 (b-5) Surcharge; sale or exchange of assets, properties,

5 and intangibles of electronic gaming licensees. For each of

6 taxable years 2017 through 2025, a surcharge is imposed on all

7 taxpayers on income arising from the sale or exchange of

8 capital assets, depreciable business property, real property

9 used in the trade or business, and Section 197 intangibles (i)

10 of an organization licensee under the Illinois Horse Racing Act

11 of 1975 and (ii) of an electronic gaming licensee under the

12 Illinois Gambling Act. The amount of the surcharge is equal to

13 the amount of federal income tax liability for the taxable year

14 attributable to those sales and exchanges. The surcharge

15 imposed shall not apply if:

16 (1) the electronic gaming license, organization

17 license, or race track property is transferred as a result

18 of any of the following:

19 (A) bankruptcy, a receivership, or a debt

20 adjustment initiated by or against the initial

21 licensee or the substantial owners of the initial

22 licensee;

23 (B) cancellation, revocation, or termination of

24 any such license by the Illinois Gaming Board or the

25 Illinois Racing Board;

26 (C) a determination by the Illinois Gaming Board

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1 that transfer of the license is in the best interests

2 of Illinois gaming;

3 (D) the death of an owner of the equity interest in

4 a licensee;

5 (E) the acquisition of a controlling interest in

6 the stock or substantially all of the assets of a

7 publicly traded company;

8 (F) a transfer by a parent company to a wholly

9 owned subsidiary; or

10 (G) the transfer or sale to or by one person to

11 another person where both persons were initial owners

12 of the license when the license was issued; or

13 (2) the controlling interest in the electronic gaming

14 license, organization license, or race track property is

15 transferred in a transaction to lineal descendants in which

16 no gain or loss is recognized or as a result of a

17 transaction in accordance with Section 351 of the Internal

18 Revenue Code in which no gain or loss is recognized; or

19 (3) live horse racing was not conducted in 2011 under a

20 license issued pursuant to the Illinois Horse Racing Act of

21 1975.

22 The transfer of an electronic gaming license, organization

23 license, or race track property by a person other than the

24 initial licensee to receive the electronic gaming license is

25 not subject to a surcharge. The Department shall adopt rules

26 necessary to implement and administer this subsection.

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1 (c) Personal Property Tax Replacement Income Tax.

2 Beginning on July 1, 1979 and thereafter, in addition to such

3 income tax, there is also hereby imposed the Personal Property

4 Tax Replacement Income Tax measured by net income on every

5 corporation (including Subchapter S corporations), partnership

6 and trust, for each taxable year ending after June 30, 1979.

7 Such taxes are imposed on the privilege of earning or receiving

8 income in or as a resident of this State. The Personal Property

9 Tax Replacement Income Tax shall be in addition to the income

10 tax imposed by subsections (a) and (b) of this Section and in

11 addition to all other occupation or privilege taxes imposed by

12 this State or by any municipal corporation or political

13 subdivision thereof.

14 (d) Additional Personal Property Tax Replacement Income

15 Tax Rates. The personal property tax replacement income tax

16 imposed by this subsection and subsection (c) of this Section

17 in the case of a corporation, other than a Subchapter S

18 corporation and except as adjusted by subsection (d-1), shall

19 be an additional amount equal to 2.85% of such taxpayer's net

20 income for the taxable year, except that beginning on January

21 1, 1981, and thereafter, the rate of 2.85% specified in this

22 subsection shall be reduced to 2.5%, and in the case of a

23 partnership, trust or a Subchapter S corporation shall be an

24 additional amount equal to 1.5% of such taxpayer's net income

25 for the taxable year.

26 (d-1) Rate reduction for certain foreign insurers. In the

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1 case of a foreign insurer, as defined by Section 35A-5 of the

2 Illinois Insurance Code, whose state or country of domicile

3 imposes on insurers domiciled in Illinois a retaliatory tax

4 (excluding any insurer whose premiums from reinsurance assumed

5 are 50% or more of its total insurance premiums as determined

6 under paragraph (2) of subsection (b) of Section 304, except

7 that for purposes of this determination premiums from

8 reinsurance do not include premiums from inter-affiliate

9 reinsurance arrangements), beginning with taxable years ending

10 on or after December 31, 1999, the sum of the rates of tax

11 imposed by subsections (b) and (d) shall be reduced (but not

12 increased) to the rate at which the total amount of tax imposed

13 under this Act, net of all credits allowed under this Act,

14 shall equal (i) the total amount of tax that would be imposed

15 on the foreign insurer's net income allocable to Illinois for

16 the taxable year by such foreign insurer's state or country of

17 domicile if that net income were subject to all income taxes

18 and taxes measured by net income imposed by such foreign

19 insurer's state or country of domicile, net of all credits

20 allowed or (ii) a rate of zero if no such tax is imposed on such

21 income by the foreign insurer's state of domicile. For the

22 purposes of this subsection (d-1), an inter-affiliate includes

23 a mutual insurer under common management.

24 (1) For the purposes of subsection (d-1), in no event

25 shall the sum of the rates of tax imposed by subsections

26 (b) and (d) be reduced below the rate at which the sum of:

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1 (A) the total amount of tax imposed on such foreign

2 insurer under this Act for a taxable year, net of all

3 credits allowed under this Act, plus

4 (B) the privilege tax imposed by Section 409 of the

5 Illinois Insurance Code, the fire insurance company

6 tax imposed by Section 12 of the Fire Investigation

7 Act, and the fire department taxes imposed under

8 Section 11-10-1 of the Illinois Municipal Code,

9 equals 1.25% for taxable years ending prior to December 31,

10 2003, or 1.75% for taxable years ending on or after

11 December 31, 2003, of the net taxable premiums written for

12 the taxable year, as described by subsection (1) of Section

13 409 of the Illinois Insurance Code. This paragraph will in

14 no event increase the rates imposed under subsections (b)

15 and (d).

16 (2) Any reduction in the rates of tax imposed by this

17 subsection shall be applied first against the rates imposed

18 by subsection (b) and only after the tax imposed by

19 subsection (a) net of all credits allowed under this

20 Section other than the credit allowed under subsection (i)

21 has been reduced to zero, against the rates imposed by

22 subsection (d).

23 This subsection (d-1) is exempt from the provisions of

24 Section 250.

25 (e) Investment credit. A taxpayer shall be allowed a credit

26 against the Personal Property Tax Replacement Income Tax for

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1 investment in qualified property.

2 (1) A taxpayer shall be allowed a credit equal to .5%

3 of the basis of qualified property placed in service during

4 the taxable year, provided such property is placed in

5 service on or after July 1, 1984. There shall be allowed an

6 additional credit equal to .5% of the basis of qualified

7 property placed in service during the taxable year,

8 provided such property is placed in service on or after

9 July 1, 1986, and the taxpayer's base employment within

10 Illinois has increased by 1% or more over the preceding

11 year as determined by the taxpayer's employment records

12 filed with the Illinois Department of Employment Security.

13 Taxpayers who are new to Illinois shall be deemed to have

14 met the 1% growth in base employment for the first year in

15 which they file employment records with the Illinois

16 Department of Employment Security. The provisions added to

17 this Section by Public Act 85-1200 (and restored by Public

18 Act 87-895) shall be construed as declaratory of existing

19 law and not as a new enactment. If, in any year, the

20 increase in base employment within Illinois over the

21 preceding year is less than 1%, the additional credit shall

22 be limited to that percentage times a fraction, the

23 numerator of which is .5% and the denominator of which is

24 1%, but shall not exceed .5%. The investment credit shall

25 not be allowed to the extent that it would reduce a

26 taxpayer's liability in any tax year below zero, nor may

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1 any credit for qualified property be allowed for any year

2 other than the year in which the property was placed in

3 service in Illinois. For tax years ending on or after

4 December 31, 1987, and on or before December 31, 1988, the

5 credit shall be allowed for the tax year in which the

6 property is placed in service, or, if the amount of the

7 credit exceeds the tax liability for that year, whether it

8 exceeds the original liability or the liability as later

9 amended, such excess may be carried forward and applied to

10 the tax liability of the 5 taxable years following the

11 excess credit years if the taxpayer (i) makes investments

12 which cause the creation of a minimum of 2,000 full-time

13 equivalent jobs in Illinois, (ii) is located in an

14 enterprise zone established pursuant to the Illinois

15 Enterprise Zone Act and (iii) is certified by the

16 Department of Commerce and Community Affairs (now

17 Department of Commerce and Economic Opportunity) as

18 complying with the requirements specified in clause (i) and

19 (ii) by July 1, 1986. The Department of Commerce and

20 Community Affairs (now Department of Commerce and Economic

21 Opportunity) shall notify the Department of Revenue of all

22 such certifications immediately. For tax years ending

23 after December 31, 1988, the credit shall be allowed for

24 the tax year in which the property is placed in service,

25 or, if the amount of the credit exceeds the tax liability

26 for that year, whether it exceeds the original liability or

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1 the liability as later amended, such excess may be carried

2 forward and applied to the tax liability of the 5 taxable

3 years following the excess credit years. The credit shall

4 be applied to the earliest year for which there is a

5 liability. If there is credit from more than one tax year

6 that is available to offset a liability, earlier credit

7 shall be applied first.

8 (2) The term "qualified property" means property

9 which:

10 (A) is tangible, whether new or used, including

11 buildings and structural components of buildings and

12 signs that are real property, but not including land or

13 improvements to real property that are not a structural

14 component of a building such as landscaping, sewer

15 lines, local access roads, fencing, parking lots, and

16 other appurtenances;

17 (B) is depreciable pursuant to Section 167 of the

18 Internal Revenue Code, except that "3-year property"

19 as defined in Section 168(c)(2)(A) of that Code is not

20 eligible for the credit provided by this subsection

21 (e);

22 (C) is acquired by purchase as defined in Section

23 179(d) of the Internal Revenue Code;

24 (D) is used in Illinois by a taxpayer who is

25 primarily engaged in manufacturing, or in mining coal

26 or fluorite, or in retailing, or was placed in service

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1 on or after July 1, 2006 in a River Edge Redevelopment

2 Zone established pursuant to the River Edge

3 Redevelopment Zone Act; and

4 (E) has not previously been used in Illinois in

5 such a manner and by such a person as would qualify for

6 the credit provided by this subsection (e) or

7 subsection (f).

8 (3) For purposes of this subsection (e),

9 "manufacturing" means the material staging and production

10 of tangible personal property by procedures commonly

11 regarded as manufacturing, processing, fabrication, or

12 assembling which changes some existing material into new

13 shapes, new qualities, or new combinations. For purposes of

14 this subsection (e) the term "mining" shall have the same

15 meaning as the term "mining" in Section 613(c) of the

16 Internal Revenue Code. For purposes of this subsection (e),

17 the term "retailing" means the sale of tangible personal

18 property for use or consumption and not for resale, or

19 services rendered in conjunction with the sale of tangible

20 personal property for use or consumption and not for

21 resale. For purposes of this subsection (e), "tangible

22 personal property" has the same meaning as when that term

23 is used in the Retailers' Occupation Tax Act, and, for

24 taxable years ending after December 31, 2008, does not

25 include the generation, transmission, or distribution of

26 electricity.

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1 (4) The basis of qualified property shall be the basis

2 used to compute the depreciation deduction for federal

3 income tax purposes.

4 (5) If the basis of the property for federal income tax

5 depreciation purposes is increased after it has been placed

6 in service in Illinois by the taxpayer, the amount of such

7 increase shall be deemed property placed in service on the

8 date of such increase in basis.

9 (6) The term "placed in service" shall have the same

10 meaning as under Section 46 of the Internal Revenue Code.

11 (7) If during any taxable year, any property ceases to

12 be qualified property in the hands of the taxpayer within

13 48 months after being placed in service, or the situs of

14 any qualified property is moved outside Illinois within 48

15 months after being placed in service, the Personal Property

16 Tax Replacement Income Tax for such taxable year shall be

17 increased. Such increase shall be determined by (i)

18 recomputing the investment credit which would have been

19 allowed for the year in which credit for such property was

20 originally allowed by eliminating such property from such

21 computation and, (ii) subtracting such recomputed credit

22 from the amount of credit previously allowed. For the

23 purposes of this paragraph (7), a reduction of the basis of

24 qualified property resulting from a redetermination of the

25 purchase price shall be deemed a disposition of qualified

26 property to the extent of such reduction.

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1 (8) Unless the investment credit is extended by law,

2 the basis of qualified property shall not include costs

3 incurred after December 31, 2018, except for costs incurred

4 pursuant to a binding contract entered into on or before

5 December 31, 2018.

6 (9) Each taxable year ending before December 31, 2000,

7 a partnership may elect to pass through to its partners the

8 credits to which the partnership is entitled under this

9 subsection (e) for the taxable year. A partner may use the

10 credit allocated to him or her under this paragraph only

11 against the tax imposed in subsections (c) and (d) of this

12 Section. If the partnership makes that election, those

13 credits shall be allocated among the partners in the

14 partnership in accordance with the rules set forth in

15 Section 704(b) of the Internal Revenue Code, and the rules

16 promulgated under that Section, and the allocated amount of

17 the credits shall be allowed to the partners for that

18 taxable year. The partnership shall make this election on

19 its Personal Property Tax Replacement Income Tax return for

20 that taxable year. The election to pass through the credits

21 shall be irrevocable.

22 For taxable years ending on or after December 31, 2000,

23 a partner that qualifies its partnership for a subtraction

24 under subparagraph (I) of paragraph (2) of subsection (d)

25 of Section 203 or a shareholder that qualifies a Subchapter

26 S corporation for a subtraction under subparagraph (S) of

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1 paragraph (2) of subsection (b) of Section 203 shall be

2 allowed a credit under this subsection (e) equal to its

3 share of the credit earned under this subsection (e) during

4 the taxable year by the partnership or Subchapter S

5 corporation, determined in accordance with the

6 determination of income and distributive share of income

7 under Sections 702 and 704 and Subchapter S of the Internal

8 Revenue Code. This paragraph is exempt from the provisions

9 of Section 250.

10 (f) Investment credit; Enterprise Zone; River Edge

11 Redevelopment Zone.

12 (1) A taxpayer shall be allowed a credit against the

13 tax imposed by subsections (a) and (b) of this Section for

14 investment in qualified property which is placed in service

15 in an Enterprise Zone created pursuant to the Illinois

16 Enterprise Zone Act or, for property placed in service on

17 or after July 1, 2006, a River Edge Redevelopment Zone

18 established pursuant to the River Edge Redevelopment Zone

19 Act. For partners, shareholders of Subchapter S

20 corporations, and owners of limited liability companies,

21 if the liability company is treated as a partnership for

22 purposes of federal and State income taxation, there shall

23 be allowed a credit under this subsection (f) to be

24 determined in accordance with the determination of income

25 and distributive share of income under Sections 702 and 704

26 and Subchapter S of the Internal Revenue Code. The credit

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1 shall be .5% of the basis for such property. The credit

2 shall be available only in the taxable year in which the

3 property is placed in service in the Enterprise Zone or

4 River Edge Redevelopment Zone and shall not be allowed to

5 the extent that it would reduce a taxpayer's liability for

6 the tax imposed by subsections (a) and (b) of this Section

7 to below zero. For tax years ending on or after December

8 31, 1985, the credit shall be allowed for the tax year in

9 which the property is placed in service, or, if the amount

10 of the credit exceeds the tax liability for that year,

11 whether it exceeds the original liability or the liability

12 as later amended, such excess may be carried forward and

13 applied to the tax liability of the 5 taxable years

14 following the excess credit year. The credit shall be

15 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, the credit

18 accruing first in time shall be applied first.

19 (2) The term qualified property means property which:

20 (A) is tangible, whether new or used, including

21 buildings and structural components of buildings;

22 (B) is depreciable pursuant to Section 167 of the

23 Internal Revenue Code, except that "3-year property"

24 as defined in Section 168(c)(2)(A) of that Code is not

25 eligible for the credit provided by this subsection

26 (f);

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1 (C) is acquired by purchase as defined in Section

2 179(d) of the Internal Revenue Code;

3 (D) is used in the Enterprise Zone or River Edge

4 Redevelopment Zone by the taxpayer; and

5 (E) has not been previously used in Illinois in

6 such a manner and by such a person as would qualify for

7 the credit provided by this subsection (f) or

8 subsection (e).

9 (3) The basis of qualified property shall be the basis

10 used to compute the depreciation deduction for federal

11 income tax purposes.

12 (4) If the basis of the property for federal income tax

13 depreciation purposes is increased after it has been placed

14 in service in the Enterprise Zone or River Edge

15 Redevelopment Zone by the taxpayer, the amount of such

16 increase shall be deemed property placed in service on the

17 date of such increase in basis.

18 (5) The term "placed in service" shall have the same

19 meaning as under Section 46 of the Internal Revenue Code.

20 (6) If during any taxable year, any property ceases to

21 be qualified property in the hands of the taxpayer within

22 48 months after being placed in service, or the situs of

23 any qualified property is moved outside the Enterprise Zone

24 or River Edge Redevelopment Zone within 48 months after

25 being placed in service, the tax imposed under subsections

26 (a) and (b) of this Section for such taxable year shall be

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1 increased. Such increase shall be determined by (i)

2 recomputing the investment credit which would have been

3 allowed for the year in which credit for such property was

4 originally allowed by eliminating such property from such

5 computation, and (ii) subtracting such recomputed credit

6 from the amount of credit previously allowed. For the

7 purposes of this paragraph (6), a reduction of the basis of

8 qualified property resulting from a redetermination of the

9 purchase price shall be deemed a disposition of qualified

10 property to the extent of such reduction.

11 (7) There shall be allowed an additional credit equal

12 to 0.5% of the basis of qualified property placed in

13 service during the taxable year in a River Edge

14 Redevelopment Zone, provided such property is placed in

15 service on or after July 1, 2006, and the taxpayer's base

16 employment within Illinois has increased by 1% or more over

17 the preceding year as determined by the taxpayer's

18 employment records filed with the Illinois Department of

19 Employment Security. Taxpayers who are new to Illinois

20 shall be deemed to have met the 1% growth in base

21 employment for the first year in which they file employment

22 records with the Illinois Department of Employment

23 Security. If, in any year, the increase in base employment

24 within Illinois over the preceding year is less than 1%,

25 the additional credit shall be limited to that percentage

26 times a fraction, the numerator of which is 0.5% and the

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1 denominator of which is 1%, but shall not exceed 0.5%.

2 (g) (Blank).

3 (h) Investment credit; High Impact Business.

4 (1) Subject to subsections (b) and (b-5) of Section 5.5

5 of the Illinois Enterprise Zone Act, a taxpayer shall be

6 allowed a credit against the tax imposed by subsections (a)

7 and (b) of this Section for investment in qualified

8 property which is placed in service by a Department of

9 Commerce and Economic Opportunity designated High Impact

10 Business. The credit shall be .5% of the basis for such

11 property. The credit shall not be available (i) until the

12 minimum investments in qualified property set forth in

13 subdivision (a)(3)(A) of Section 5.5 of the Illinois

14 Enterprise Zone Act have been satisfied or (ii) until the

15 time authorized in subsection (b-5) of the Illinois

16 Enterprise Zone Act for entities designated as High Impact

17 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

18 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone

19 Act, and shall not be allowed to the extent that it would

20 reduce a taxpayer's liability for the tax imposed by

21 subsections (a) and (b) of this Section to below zero. The

22 credit applicable to such investments shall be taken in the

23 taxable year in which such investments have been completed.

24 The credit for additional investments beyond the minimum

25 investment by a designated high impact business authorized

26 under subdivision (a)(3)(A) of Section 5.5 of the Illinois

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1 Enterprise Zone Act shall be available only in the taxable

2 year in which the property is placed in service and shall

3 not be allowed to the extent that it would reduce a

4 taxpayer's liability for the tax imposed by subsections (a)

5 and (b) of this Section to below zero. For tax years ending

6 on or after December 31, 1987, the credit shall be allowed

7 for the tax year in which the property is placed in

8 service, or, if the amount of the credit exceeds the tax

9 liability for that year, whether it exceeds the original

10 liability or the liability as later amended, such excess

11 may be carried forward and applied to the tax liability of

12 the 5 taxable years following the excess credit year. The

13 credit shall be applied to the earliest year for which

14 there is a liability. If there is credit from more than one

15 tax year that is available to offset a liability, the

16 credit accruing first in time shall be applied first.

17 Changes made in this subdivision (h)(1) by Public Act

18 88-670 restore changes made by Public Act 85-1182 and

19 reflect existing law.

20 (2) The term qualified property means property which:

21 (A) is tangible, whether new or used, including

22 buildings and structural components of buildings;

23 (B) is depreciable pursuant to Section 167 of the

24 Internal Revenue Code, except that "3-year property"

25 as defined in Section 168(c)(2)(A) of that Code is not

26 eligible for the credit provided by this subsection

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1 (h);

2 (C) is acquired by purchase as defined in Section

3 179(d) of the Internal Revenue Code; and

4 (D) is not eligible for the Enterprise Zone

5 Investment Credit provided by subsection (f) of this

6 Section.

7 (3) The basis of qualified property shall be the basis

8 used to compute the depreciation deduction for federal

9 income tax purposes.

10 (4) If the basis of the property for federal income tax

11 depreciation purposes is increased after it has been placed

12 in service in a federally designated Foreign Trade Zone or

13 Sub-Zone located in Illinois by the taxpayer, the amount of

14 such increase shall be deemed property placed in service on

15 the date of such increase in basis.

16 (5) The term "placed in service" shall have the same

17 meaning as under Section 46 of the Internal Revenue Code.

18 (6) If during any taxable year ending on or before

19 December 31, 1996, any property ceases to be qualified

20 property in the hands of the taxpayer within 48 months

21 after being placed in service, or the situs of any

22 qualified property is moved outside Illinois within 48

23 months after being placed in service, the tax imposed under

24 subsections (a) and (b) of this Section for such taxable

25 year shall be increased. Such increase shall be determined

26 by (i) recomputing the investment credit which would have

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1 been allowed for the year in which credit for such property

2 was originally allowed by eliminating such property from

3 such computation, and (ii) subtracting such recomputed

4 credit from the amount of credit previously allowed. For

5 the purposes of this paragraph (6), a reduction of the

6 basis of qualified property resulting from a

7 redetermination of the purchase price shall be deemed a

8 disposition of qualified property to the extent of such

9 reduction.

10 (7) Beginning with tax years ending after December 31,

11 1996, if a taxpayer qualifies for the credit under this

12 subsection (h) and thereby is granted a tax abatement and

13 the taxpayer relocates its entire facility in violation of

14 the explicit terms and length of the contract under Section

15 18-183 of the Property Tax Code, the tax imposed under

16 subsections (a) and (b) of this Section shall be increased

17 for the taxable year in which the taxpayer relocated its

18 facility by an amount equal to the amount of credit

19 received by the taxpayer under this subsection (h).

20 (i) Credit for Personal Property Tax Replacement Income

21 Tax. For tax years ending prior to December 31, 2003, a credit

22 shall be allowed against the tax imposed by subsections (a) and

23 (b) of this Section for the tax imposed by subsections (c) and

24 (d) of this Section. This credit shall be computed by

25 multiplying the tax imposed by subsections (c) and (d) of this

26 Section by a fraction, the numerator of which is base income

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1 allocable to Illinois and the denominator of which is Illinois

2 base income, and further multiplying the product by the tax

3 rate imposed by subsections (a) and (b) of this Section.

4 Any credit earned on or after December 31, 1986 under this

5 subsection which is unused in the year the credit is computed

6 because it exceeds the tax liability imposed by subsections (a)

7 and (b) for that year (whether it exceeds the original

8 liability or the liability as later amended) may be carried

9 forward and applied to the tax liability imposed by subsections

10 (a) and (b) of the 5 taxable years following the excess credit

11 year, provided that no credit may be carried forward to any

12 year ending on or after December 31, 2003. This credit shall be

13 applied first to the earliest year for which there is a

14 liability. If there is a credit under this subsection from more

15 than one tax year that is available to offset a liability the

16 earliest credit arising under this subsection shall be applied

17 first.

18 If, during any taxable year ending on or after December 31,

19 1986, the tax imposed by subsections (c) and (d) of this

20 Section for which a taxpayer has claimed a credit under this

21 subsection (i) is reduced, the amount of credit for such tax

22 shall also be reduced. Such reduction shall be determined by

23 recomputing the credit to take into account the reduced tax

24 imposed by subsections (c) and (d). If any portion of the

25 reduced amount of credit has been carried to a different

26 taxable year, an amended return shall be filed for such taxable

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1 year to reduce the amount of credit claimed.

2 (j) Training expense credit. Beginning with tax years

3 ending on or after December 31, 1986 and prior to December 31,

4 2003, a taxpayer shall be allowed a credit against the tax

5 imposed by subsections (a) and (b) under this Section for all

6 amounts paid or accrued, on behalf of all persons employed by

7 the taxpayer in Illinois or Illinois residents employed outside

8 of Illinois by a taxpayer, for educational or vocational

9 training in semi-technical or technical fields or semi-skilled

10 or skilled fields, which were deducted from gross income in the

11 computation of taxable income. The credit against the tax

12 imposed by subsections (a) and (b) shall be 1.6% of such

13 training expenses. For partners, shareholders of subchapter S

14 corporations, and owners of limited liability companies, if the

15 liability company is treated as a partnership for purposes of

16 federal and State income taxation, there shall be allowed a

17 credit under this subsection (j) to be determined in accordance

18 with the determination of income and distributive share of

19 income under Sections 702 and 704 and subchapter S of the

20 Internal Revenue Code.

21 Any credit allowed under this subsection which is unused in

22 the year the credit is earned may be carried forward to each of

23 the 5 taxable years following the year for which the credit is

24 first computed until it is used. This credit shall be applied

25 first to the earliest year for which there is a liability. If

26 there is a credit under this subsection from more than one tax

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1 year that is available to offset a liability the earliest

2 credit arising under this subsection shall be applied first. No

3 carryforward credit may be claimed in any tax year ending on or

4 after December 31, 2003.

5 (k) Research and development credit. For tax years ending

6 after July 1, 1990 and prior to December 31, 2003, and

7 beginning again for tax years ending on or after December 31,

8 2004, and ending prior to January 1, 2016, a taxpayer shall be

9 allowed a credit against the tax imposed by subsections (a) and

10 (b) of this Section for increasing research activities in this

11 State. The credit allowed against the tax imposed by

12 subsections (a) and (b) shall be equal to 6 1/2% of the

13 qualifying expenditures for increasing research activities in

14 this State. For partners, shareholders of subchapter S

15 corporations, and owners of limited liability companies, if the

16 liability company is treated as a partnership for purposes of

17 federal and State income taxation, there shall be allowed a

18 credit under this subsection to be determined in accordance

19 with the determination of income and distributive share of

20 income under Sections 702 and 704 and subchapter S of the

21 Internal Revenue Code.

22 For purposes of this subsection, "qualifying expenditures"

23 means the qualifying expenditures as defined for the federal

24 credit for increasing research activities which would be

25 allowable under Section 41 of the Internal Revenue Code and

26 which are conducted in this State, "qualifying expenditures for

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1 increasing research activities in this State" means the excess

2 of qualifying expenditures for the taxable year in which

3 incurred over qualifying expenditures for the base period,

4 "qualifying expenditures for the base period" means the average

5 of the qualifying expenditures for each year in the base

6 period, and "base period" means the 3 taxable years immediately

7 preceding the taxable year for which the determination is being

8 made.

9 Any credit in excess of the tax liability for the taxable

10 year may be carried forward. A taxpayer may elect to have the

11 unused credit shown on its final completed return carried over

12 as a credit against the tax liability for the following 5

13 taxable years or until it has been fully used, whichever occurs

14 first; provided that no credit earned in a tax year ending

15 prior to December 31, 2003 may be carried forward to any year

16 ending on or after December 31, 2003.

17 If an unused credit is carried forward to a given year from

18 2 or more earlier years, that credit arising in the earliest

19 year will be applied first against the tax liability for the

20 given year. If a tax liability for the given year still

21 remains, the credit from the next earliest year will then be

22 applied, and so on, until all credits have been used or no tax

23 liability for the given year remains. Any remaining unused

24 credit or credits then will be carried forward to the next

25 following year in which a tax liability is incurred, except

26 that no credit can be carried forward to a year which is more

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1 than 5 years after the year in which the expense for which the

2 credit is given was incurred.

3 No inference shall be drawn from this amendatory Act of the

4 91st General Assembly in construing this Section for taxable

5 years beginning before January 1, 1999.

6 (l) Environmental Remediation Tax Credit.

7 (i) For tax years ending after December 31, 1997 and on

8 or before December 31, 2001, a taxpayer shall be allowed a

9 credit against the tax imposed by subsections (a) and (b)

10 of this Section for certain amounts paid for unreimbursed

11 eligible remediation costs, as specified in this

12 subsection. For purposes of this Section, "unreimbursed

13 eligible remediation costs" means costs approved by the

14 Illinois Environmental Protection Agency ("Agency") under

15 Section 58.14 of the Environmental Protection Act that were

16 paid in performing environmental remediation at a site for

17 which a No Further Remediation Letter was issued by the

18 Agency and recorded under Section 58.10 of the

19 Environmental Protection Act. The credit must be claimed

20 for the taxable year in which Agency approval of the

21 eligible remediation costs is granted. The credit is not

22 available to any taxpayer if the taxpayer or any related

23 party caused or contributed to, in any material respect, a

24 release of regulated substances on, in, or under the site

25 that was identified and addressed by the remedial action

26 pursuant to the Site Remediation Program of the

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1 Environmental Protection Act. After the Pollution Control

2 Board rules are adopted pursuant to the Illinois

3 Administrative Procedure Act for the administration and

4 enforcement of Section 58.9 of the Environmental

5 Protection Act, determinations as to credit availability

6 for purposes of this Section shall be made consistent with

7 those rules. For purposes of this Section, "taxpayer"

8 includes a person whose tax attributes the taxpayer has

9 succeeded to under Section 381 of the Internal Revenue Code

10 and "related party" includes the persons disallowed a

11 deduction for losses by paragraphs (b), (c), and (f)(1) of

12 Section 267 of the Internal Revenue Code by virtue of being

13 a related taxpayer, as well as any of its partners. The

14 credit allowed against the tax imposed by subsections (a)

15 and (b) shall be equal to 25% of the unreimbursed eligible

16 remediation costs in excess of $100,000 per site, except

17 that the $100,000 threshold shall not apply to any site

18 contained in an enterprise zone as determined by the

19 Department of Commerce and Community Affairs (now

20 Department of Commerce and Economic Opportunity). The

21 total credit allowed shall not exceed $40,000 per year with

22 a maximum total of $150,000 per site. For partners and

23 shareholders of subchapter S corporations, there shall be

24 allowed a credit under this subsection to be determined in

25 accordance with the determination of income and

26 distributive share of income under Sections 702 and 704 and

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1 subchapter S of the Internal Revenue Code.

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. The

6 term "unused credit" does not include any amounts of

7 unreimbursed eligible remediation costs in excess of the

8 maximum credit per site authorized under paragraph (i).

9 This credit shall be applied first to the earliest year for

10 which there is a liability. If there is a credit under this

11 subsection from more than one tax year that is available to

12 offset a liability, the earliest credit arising under this

13 subsection shall be applied first. A credit allowed under

14 this subsection may be sold to a buyer as part of a sale of

15 all or part of the remediation site for which the credit

16 was granted. The purchaser of a remediation site and the

17 tax credit shall succeed to the unused credit and remaining

18 carry-forward period of the seller. To perfect the

19 transfer, the assignor shall record the transfer in the

20 chain of title for the site and provide written notice to

21 the Director of the Illinois Department of Revenue of the

22 assignor's intent to sell the remediation site and the

23 amount of the tax credit to be transferred as a portion of

24 the sale. In no event may a credit be transferred to any

25 taxpayer if the taxpayer or a related party would not be

26 eligible under the provisions of subsection (i).

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1 (iii) For purposes of this Section, the term "site"

2 shall have the same meaning as under Section 58.2 of the

3 Environmental Protection Act.

4 (m) Education expense credit. Beginning with tax years

5 ending after December 31, 1999, a taxpayer who is the custodian

6 of one or more qualifying pupils shall be allowed a credit

7 against the tax imposed by subsections (a) and (b) of this

8 Section for qualified education expenses incurred on behalf of

9 the qualifying pupils. The credit shall be equal to 25% of

10 qualified education expenses, but in no event may the total

11 credit under this subsection claimed by a family that is the

12 custodian of qualifying pupils exceed $500. In no event shall a

13 credit under this subsection reduce the taxpayer's liability

14 under this Act to less than zero. This subsection is exempt

15 from the provisions of Section 250 of this Act.

16 For purposes of this subsection:

17 "Qualifying pupils" means individuals who (i) are

18 residents of the State of Illinois, (ii) are under the age of

19 21 at the close of the school year for which a credit is

20 sought, and (iii) during the school year for which a credit is

21 sought were full-time pupils enrolled in a kindergarten through

22 twelfth grade education program at any school, as defined in

23 this subsection.

24 "Qualified education expense" means the amount incurred on

25 behalf of a qualifying pupil in excess of $250 for tuition,

26 book fees, and lab fees at the school in which the pupil is

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1 enrolled during the regular school year.

2 "School" means any public or nonpublic elementary or

3 secondary school in Illinois that is in compliance with Title

4 VI of the Civil Rights Act of 1964 and attendance at which

5 satisfies the requirements of Section 26-1 of the School Code,

6 except that nothing shall be construed to require a child to

7 attend any particular public or nonpublic school to qualify for

8 the credit under this Section.

9 "Custodian" means, with respect to qualifying pupils, an

10 Illinois resident who is a parent, the parents, a legal

11 guardian, or the legal guardians of the qualifying pupils.

12 (n) River Edge Redevelopment Zone site remediation tax

13 credit.

14 (i) For tax years ending on or after December 31, 2006,

15 a taxpayer shall be allowed a credit against the tax

16 imposed by subsections (a) and (b) of this Section for

17 certain amounts paid for unreimbursed eligible remediation

18 costs, as specified in this subsection. For purposes of

19 this Section, "unreimbursed eligible remediation costs"

20 means costs approved by the Illinois Environmental

21 Protection Agency ("Agency") under Section 58.14a of the

22 Environmental Protection Act that were paid in performing

23 environmental remediation at a site within a River Edge

24 Redevelopment Zone for which a No Further Remediation

25 Letter was issued by the Agency and recorded under Section

26 58.10 of the Environmental Protection Act. The credit must

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1 be claimed for the taxable year in which Agency approval of

2 the eligible remediation costs is granted. The credit is

3 not available to any taxpayer if the taxpayer or any

4 related party caused or contributed to, in any material

5 respect, a release of regulated substances on, in, or under

6 the site that was identified and addressed by the remedial

7 action pursuant to the Site Remediation Program of the

8 Environmental Protection Act. Determinations as to credit

9 availability for purposes of this Section shall be made

10 consistent with rules adopted by the Pollution Control

11 Board pursuant to the Illinois Administrative Procedure

12 Act for the administration and enforcement of Section 58.9

13 of the Environmental Protection Act. For purposes of this

14 Section, "taxpayer" includes a person whose tax attributes

15 the taxpayer has succeeded to under Section 381 of the

16 Internal Revenue Code and "related party" includes the

17 persons disallowed a deduction for losses by paragraphs

18 (b), (c), and (f)(1) of Section 267 of the Internal Revenue

19 Code by virtue of being a related taxpayer, as well as any

20 of its partners. The credit allowed against the tax imposed

21 by subsections (a) and (b) shall be equal to 25% of the

22 unreimbursed eligible remediation costs in excess of

23 $100,000 per site.

24 (ii) A credit allowed under this subsection that is

25 unused in the year the credit is earned may be carried

26 forward to each of the 5 taxable years following the year

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1 for which the credit is first earned until it is used. This

2 credit shall be applied first to the earliest year for

3 which there is a liability. If there is a credit under this

4 subsection from more than one tax year that is available to

5 offset a liability, the earliest credit arising under this

6 subsection shall be applied first. A credit allowed under

7 this subsection may be sold to a buyer as part of a sale of

8 all or part of the remediation site for which the credit

9 was granted. The purchaser of a remediation site and the

10 tax credit shall succeed to the unused credit and remaining

11 carry-forward period of the seller. To perfect the

12 transfer, the assignor shall record the transfer in the

13 chain of title for the site and provide written notice to

14 the Director of the Illinois Department of Revenue of the

15 assignor's intent to sell the remediation site and the

16 amount of the tax credit to be transferred as a portion of

17 the sale. In no event may a credit be transferred to any

18 taxpayer if the taxpayer or a related party would not be

19 eligible under the provisions of subsection (i).

20 (iii) For purposes of this Section, the term "site"

21 shall have the same meaning as under Section 58.2 of the

22 Environmental Protection Act.

23 (o) For each of taxable years during the Compassionate Use

24 of Medical Cannabis Pilot Program, a surcharge is imposed on

25 all taxpayers on income arising from the sale or exchange of

26 capital assets, depreciable business property, real property

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1 used in the trade or business, and Section 197 intangibles of

2 an organization registrant under the Compassionate Use of

3 Medical Cannabis Pilot Program Act. The amount of the surcharge

4 is equal to the amount of federal income tax liability for the

5 taxable year attributable to those sales and exchanges. The

6 surcharge imposed does not apply if:

7 (1) the medical cannabis cultivation center

8 registration, medical cannabis dispensary registration, or

9 the property of a registration is transferred as a result

10 of any of the following:

11 (A) bankruptcy, a receivership, or a debt

12 adjustment initiated by or against the initial

13 registration or the substantial owners of the initial

14 registration;

15 (B) cancellation, revocation, or termination of

16 any registration by the Illinois Department of Public

17 Health;

18 (C) a determination by the Illinois Department of

19 Public Health that transfer of the registration is in

20 the best interests of Illinois qualifying patients as

21 defined by the Compassionate Use of Medical Cannabis

22 Pilot Program Act;

23 (D) the death of an owner of the equity interest in

24 a registrant;

25 (E) the acquisition of a controlling interest in

26 the stock or substantially all of the assets of a

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1 publicly traded company;

2 (F) a transfer by a parent company to a wholly

3 owned subsidiary; or

4 (G) the transfer or sale to or by one person to

5 another person where both persons were initial owners

6 of the registration when the registration was issued;

7 or

8 (2) the cannabis cultivation center registration,

9 medical cannabis dispensary registration, or the

10 controlling interest in a registrant's property is

11 transferred in a transaction to lineal descendants in which

12 no gain or loss is recognized or as a result of a

13 transaction in accordance with Section 351 of the Internal

14 Revenue Code in which no gain or loss is recognized.

15 (Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,

16 eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,

17 eff. 7-16-14.)

18 (35 ILCS 5/303) (from Ch. 120, par. 3-303)

19 Sec. 303. (a) In general. Any item of capital gain or loss,

20 and any item of income from rents or royalties from real or

21 tangible personal property, interest, dividends, and patent or

22 copyright royalties, and prizes awarded under the Illinois

23 Lottery Law, and, for taxable years ending on or after December

24 31, 2017, wagering and gambling winnings from Illinois sources

25 as set forth in subsection (e-1) of this Section, to the extent

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1 such item constitutes nonbusiness income, together with any

2 item of deduction directly allocable thereto, shall be

3 allocated by any person other than a resident as provided in

4 this Section.

5 (b) Capital gains and losses.

6 (1) Real property. Capital gains and losses from sales

7 or exchanges of real property are allocable to this State

8 if the property is located in this State.

9 (2) Tangible personal property. Capital gains and

10 losses from sales or exchanges of tangible personal

11 property are allocable to this State if, at the time of

12 such sale or exchange:

13 (A) The property had its situs in this State; or

14 (B) The taxpayer had its commercial domicile in

15 this State and was not taxable in the state in which

16 the property had its situs.

17 (3) Intangibles. Capital gains and losses from sales or

18 exchanges of intangible personal property are allocable to

19 this State if the taxpayer had its commercial domicile in

20 this State at the time of such sale or exchange.

21 (c) Rents and royalties.

22 (1) Real property. Rents and royalties from real

23 property are allocable to this State if the property is

24 located in this State.

25 (2) Tangible personal property. Rents and royalties

26 from tangible personal property are allocable to this

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1 State:

2 (A) If and to the extent that the property is

3 utilized in this State; or

4 (B) In their entirety if, at the time such rents or

5 royalties were paid or accrued, the taxpayer had its

6 commercial domicile in this State and was not organized

7 under the laws of or taxable with respect to such rents

8 or royalties in the state in which the property was

9 utilized. The extent of utilization of tangible

10 personal property in a state is determined by

11 multiplying the rents or royalties derived from such

12 property by a fraction, the numerator of which is the

13 number of days of physical location of the property in

14 the state during the rental or royalty period in the

15 taxable year and the denominator of which is the number

16 of days of physical location of the property everywhere

17 during all rental or royalty periods in the taxable

18 year. If the physical location of the property during

19 the rental or royalty period is unknown or

20 unascertainable by the taxpayer, tangible personal

21 property is utilized in the state in which the property

22 was located at the time the rental or royalty payer

23 obtained possession.

24 (d) Patent and copyright royalties.

25 (1) Allocation. Patent and copyright royalties are

26 allocable to this State:

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1 (A) If and to the extent that the patent or

2 copyright is utilized by the payer in this State; or

3 (B) If and to the extent that the patent or

4 copyright is utilized by the payer in a state in which

5 the taxpayer is not taxable with respect to such

6 royalties and, at the time such royalties were paid or

7 accrued, the taxpayer had its commercial domicile in

8 this State.

9 (2) Utilization.

10 (A) A patent is utilized in a state to the extent

11 that it is employed in production, fabrication,

12 manufacturing or other processing in the state or to

13 the extent that a patented product is produced in the

14 state. If the basis of receipts from patent royalties

15 does not permit allocation to states or if the

16 accounting procedures do not reflect states of

17 utilization, the patent is utilized in this State if

18 the taxpayer has its commercial domicile in this State.

19 (B) A copyright is utilized in a state to the

20 extent that printing or other publication originates

21 in the state. If the basis of receipts from copyright

22 royalties does not permit allocation to states or if

23 the accounting procedures do not reflect states of

24 utilization, the copyright is utilized in this State if

25 the taxpayer has its commercial domicile in this State.

26 (e) Illinois lottery prizes. Prizes awarded under the

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1 Illinois Lottery Law are allocable to this State. Payments

2 received in taxable years ending on or after December 31, 2013,

3 from the assignment of a prize under Section 13.1 of the

4 Illinois Lottery Law are allocable to this State.

5 (e-1) Wagering and gambling winnings. Payments received in

6 taxable years ending on or after December 31, 2017 of winnings

7 from pari-mutuel wagering conducted at a wagering facility

8 licensed under the Illinois Horse Racing Act of 1975 and from

9 gambling games conducted on a riverboat or in a casino or

10 electronic gaming facility licensed under the Illinois

11 Gambling Act are allocable to this State.

12 (e-5) Unemployment benefits. Unemployment benefits paid by

13 the Illinois Department of Employment Security are allocable to

14 this State.

15 (f) Taxability in other state. For purposes of allocation

16 of income pursuant to this Section, a taxpayer is taxable in

17 another state if:

18 (1) In that state he is subject to a net income tax, a

19 franchise tax measured by net income, a franchise tax for

20 the privilege of doing business, or a corporate stock tax;

21 or

22 (2) That state has jurisdiction to subject the taxpayer

23 to a net income tax regardless of whether, in fact, the

24 state does or does not.

25 (g) Cross references.

26 (1) For allocation of interest and dividends by persons

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1 other than residents, see Section 301(c)(2).

2 (2) For allocation of nonbusiness income by residents,

3 see Section 301(a).

4 (Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)

5 (35 ILCS 5/304) (from Ch. 120, par. 3-304)

6 Sec. 304. Business income of persons other than residents.

7 (a) In general. The business income of a person other than

8 a resident shall be allocated to this State if such person's

9 business income is derived solely from this State. If a person

10 other than a resident derives business income from this State

11 and one or more other states, then, for tax years ending on or

12 before December 30, 1998, and except as otherwise provided by

13 this Section, such person's business income shall be

14 apportioned to this State by multiplying the income by a

15 fraction, the numerator of which is the sum of the property

16 factor (if any), the payroll factor (if any) and 200% of the

17 sales factor (if any), and the denominator of which is 4

18 reduced by the number of factors other than the sales factor

19 which have a denominator of zero and by an additional 2 if the

20 sales factor has a denominator of zero. For tax years ending on

21 or after December 31, 1998, and except as otherwise provided by

22 this Section, persons other than residents who derive business

23 income from this State and one or more other states shall

24 compute their apportionment factor by weighting their

25 property, payroll, and sales factors as provided in subsection

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1 (h) of this Section.

2 (1) Property factor.

3 (A) The property factor is a fraction, the numerator of

4 which is the average value of the person's real and

5 tangible personal property owned or rented and used in the

6 trade or business in this State during the taxable year and

7 the denominator of which is the average value of all the

8 person's real and tangible personal property owned or

9 rented and used in the trade or business during the taxable

10 year.

11 (B) Property owned by the person is valued at its

12 original cost. Property rented by the person is valued at 8

13 times the net annual rental rate. Net annual rental rate is

14 the annual rental rate paid by the person less any annual

15 rental rate received by the person from sub-rentals.

16 (C) The average value of property shall be determined

17 by averaging the values at the beginning and ending of the

18 taxable year but the Director may require the averaging of

19 monthly values during the taxable year if reasonably

20 required to reflect properly the average value of the

21 person's property.

22 (2) Payroll factor.

23 (A) The payroll factor is a fraction, the numerator of

24 which is the total amount paid in this State during the

25 taxable year by the person for compensation, and the

26 denominator of which is the total compensation paid

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1 everywhere during the taxable year.

2 (B) Compensation is paid in this State if:

3 (i) The individual's service is performed entirely

4 within this State;

5 (ii) The individual's service is performed both

6 within and without this State, but the service

7 performed without this State is incidental to the

8 individual's service performed within this State; or

9 (iii) Some of the service is performed within this

10 State and either the base of operations, or if there is

11 no base of operations, the place from which the service

12 is directed or controlled is within this State, or the

13 base of operations or the place from which the service

14 is directed or controlled is not in any state in which

15 some part of the service is performed, but the

16 individual's residence is in this State.

17 (iv) Compensation paid to nonresident professional

18 athletes.

19 (a) General. The Illinois source income of a

20 nonresident individual who is a member of a

21 professional athletic team includes the portion of the

22 individual's total compensation for services performed

23 as a member of a professional athletic team during the

24 taxable year which the number of duty days spent within

25 this State performing services for the team in any

26 manner during the taxable year bears to the total

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1 number of duty days spent both within and without this

2 State during the taxable year.

3 (b) Travel days. Travel days that do not involve

4 either a game, practice, team meeting, or other similar

5 team event are not considered duty days spent in this

6 State. However, such travel days are considered in the

7 total duty days spent both within and without this

8 State.

9 (c) Definitions. For purposes of this subpart

10 (iv):

11 (1) The term "professional athletic team"

12 includes, but is not limited to, any professional

13 baseball, basketball, football, soccer, or hockey

14 team.

15 (2) The term "member of a professional

16 athletic team" includes those employees who are

17 active players, players on the disabled list, and

18 any other persons required to travel and who travel

19 with and perform services on behalf of a

20 professional athletic team on a regular basis.

21 This includes, but is not limited to, coaches,

22 managers, and trainers.

23 (3) Except as provided in items (C) and (D) of

24 this subpart (3), the term "duty days" means all

25 days during the taxable year from the beginning of

26 the professional athletic team's official

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1 pre-season training period through the last game

2 in which the team competes or is scheduled to

3 compete. Duty days shall be counted for the year in

4 which they occur, including where a team's

5 official pre-season training period through the

6 last game in which the team competes or is

7 scheduled to compete, occurs during more than one

8 tax year.

9 (A) Duty days shall also include days on

10 which a member of a professional athletic team

11 performs service for a team on a date that does

12 not fall within the foregoing period (e.g.,

13 participation in instructional leagues, the

14 "All Star Game", or promotional "caravans").

15 Performing a service for a professional

16 athletic team includes conducting training and

17 rehabilitation activities, when such

18 activities are conducted at team facilities.

19 (B) Also included in duty days are game

20 days, practice days, days spent at team

21 meetings, promotional caravans, preseason

22 training camps, and days served with the team

23 through all post-season games in which the team

24 competes or is scheduled to compete.

25 (C) Duty days for any person who joins a

26 team during the period from the beginning of

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1 the professional athletic team's official

2 pre-season training period through the last

3 game in which the team competes, or is

4 scheduled to compete, shall begin on the day

5 that person joins the team. Conversely, duty

6 days for any person who leaves a team during

7 this period shall end on the day that person

8 leaves the team. Where a person switches teams

9 during a taxable year, a separate duty-day

10 calculation shall be made for the period the

11 person was with each team.

12 (D) Days for which a member of a

13 professional athletic team is not compensated

14 and is not performing services for the team in

15 any manner, including days when such member of

16 a professional athletic team has been

17 suspended without pay and prohibited from

18 performing any services for the team, shall not

19 be treated as duty days.

20 (E) Days for which a member of a

21 professional athletic team is on the disabled

22 list and does not conduct rehabilitation

23 activities at facilities of the team, and is

24 not otherwise performing services for the team

25 in Illinois, shall not be considered duty days

26 spent in this State. All days on the disabled

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1 list, however, are considered to be included in

2 total duty days spent both within and without

3 this State.

4 (4) The term "total compensation for services

5 performed as a member of a professional athletic

6 team" means the total compensation received during

7 the taxable year for services performed:

8 (A) from the beginning of the official

9 pre-season training period through the last

10 game in which the team competes or is scheduled

11 to compete during that taxable year; and

12 (B) during the taxable year on a date which

13 does not fall within the foregoing period

14 (e.g., participation in instructional leagues,

15 the "All Star Game", or promotional caravans).

16 This compensation shall include, but is not

17 limited to, salaries, wages, bonuses as described

18 in this subpart, and any other type of compensation

19 paid during the taxable year to a member of a

20 professional athletic team for services performed

21 in that year. This compensation does not include

22 strike benefits, severance pay, termination pay,

23 contract or option year buy-out payments,

24 expansion or relocation payments, or any other

25 payments not related to services performed for the

26 team.

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1 For purposes of this subparagraph, "bonuses"

2 included in "total compensation for services

3 performed as a member of a professional athletic

4 team" subject to the allocation described in

5 Section 302(c)(1) are: bonuses earned as a result

6 of play (i.e., performance bonuses) during the

7 season, including bonuses paid for championship,

8 playoff or "bowl" games played by a team, or for

9 selection to all-star league or other honorary

10 positions; and bonuses paid for signing a

11 contract, unless the payment of the signing bonus

12 is not conditional upon the signee playing any

13 games for the team or performing any subsequent

14 services for the team or even making the team, the

15 signing bonus is payable separately from the

16 salary and any other compensation, and the signing

17 bonus is nonrefundable.

18 (3) Sales factor.

19 (A) The sales factor is a fraction, the numerator of

20 which is the total sales of the person in this State during

21 the taxable year, and the denominator of which is the total

22 sales of the person everywhere during the taxable year.

23 (B) Sales of tangible personal property are in this

24 State if:

25 (i) The property is delivered or shipped to a

26 purchaser, other than the United States government,

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1 within this State regardless of the f. o. b. point or

2 other conditions of the sale; or

3 (ii) The property is shipped from an office, store,

4 warehouse, factory or other place of storage in this

5 State and either the purchaser is the United States

6 government or the person is not taxable in the state of

7 the purchaser; provided, however, that premises owned

8 or leased by a person who has independently contracted

9 with the seller for the printing of newspapers,

10 periodicals or books shall not be deemed to be an

11 office, store, warehouse, factory or other place of

12 storage for purposes of this Section. Sales of tangible

13 personal property are not in this State if the seller

14 and purchaser would be members of the same unitary

15 business group but for the fact that either the seller

16 or purchaser is a person with 80% or more of total

17 business activity outside of the United States and the

18 property is purchased for resale.

19 (B-1) Patents, copyrights, trademarks, and similar

20 items of intangible personal property.

21 (i) Gross receipts from the licensing, sale, or

22 other disposition of a patent, copyright, trademark,

23 or similar item of intangible personal property, other

24 than gross receipts governed by paragraph (B-7) of this

25 item (3), are in this State to the extent the item is

26 utilized in this State during the year the gross

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1 receipts are included in gross income.

2 (ii) Place of utilization.

3 (I) A patent is utilized in a state to the

4 extent that it is employed in production,

5 fabrication, manufacturing, or other processing in

6 the state or to the extent that a patented product

7 is produced in the state. If a patent is utilized

8 in more than one state, the extent to which it is

9 utilized in any one state shall be a fraction equal

10 to the gross receipts of the licensee or purchaser

11 from sales or leases of items produced,

12 fabricated, manufactured, or processed within that

13 state using the patent and of patented items

14 produced within that state, divided by the total of

15 such gross receipts for all states in which the

16 patent is utilized.

17 (II) A copyright is utilized in a state to the

18 extent that printing or other publication

19 originates in the state. If a copyright is utilized

20 in more than one state, the extent to which it is

21 utilized in any one state shall be a fraction equal

22 to the gross receipts from sales or licenses of

23 materials printed or published in that state

24 divided by the total of such gross receipts for all

25 states in which the copyright is utilized.

26 (III) Trademarks and other items of intangible

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1 personal property governed by this paragraph (B-1)

2 are utilized in the state in which the commercial

3 domicile of the licensee or purchaser is located.

4 (iii) If the state of utilization of an item of

5 property governed by this paragraph (B-1) cannot be

6 determined from the taxpayer's books and records or

7 from the books and records of any person related to the

8 taxpayer within the meaning of Section 267(b) of the

9 Internal Revenue Code, 26 U.S.C. 267, the gross

10 receipts attributable to that item shall be excluded

11 from both the numerator and the denominator of the

12 sales factor.

13 (B-2) Gross receipts from the license, sale, or other

14 disposition of patents, copyrights, trademarks, and

15 similar items of intangible personal property, other than

16 gross receipts governed by paragraph (B-7) of this item

17 (3), may be included in the numerator or denominator of the

18 sales factor only if gross receipts from licenses, sales,

19 or other disposition of such items comprise more than 50%

20 of the taxpayer's total gross receipts included in gross

21 income during the tax year and during each of the 2

22 immediately preceding tax years; provided that, when a

23 taxpayer is a member of a unitary business group, such

24 determination shall be made on the basis of the gross

25 receipts of the entire unitary business group.

26 (B-5) For taxable years ending on or after December 31,

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1 2008, except as provided in subsections (ii) through (vii),

2 receipts from the sale of telecommunications service or

3 mobile telecommunications service are in this State if the

4 customer's service address is in this State.

5 (i) For purposes of this subparagraph (B-5), the

6 following terms have the following meanings:

7 "Ancillary services" means services that are

8 associated with or incidental to the provision of

9 "telecommunications services", including but not

10 limited to "detailed telecommunications billing",

11 "directory assistance", "vertical service", and "voice

12 mail services".

13 "Air-to-Ground Radiotelephone service" means a

14 radio service, as that term is defined in 47 CFR 22.99,

15 in which common carriers are authorized to offer and

16 provide radio telecommunications service for hire to

17 subscribers in aircraft.

18 "Call-by-call Basis" means any method of charging

19 for telecommunications services where the price is

20 measured by individual calls.

21 "Communications Channel" means a physical or

22 virtual path of communications over which signals are

23 transmitted between or among customer channel

24 termination points.

25 "Conference bridging service" means an "ancillary

26 service" that links two or more participants of an

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1 audio or video conference call and may include the

2 provision of a telephone number. "Conference bridging

3 service" does not include the "telecommunications

4 services" used to reach the conference bridge.

5 "Customer Channel Termination Point" means the

6 location where the customer either inputs or receives

7 the communications.

8 "Detailed telecommunications billing service"

9 means an "ancillary service" of separately stating

10 information pertaining to individual calls on a

11 customer's billing statement.

12 "Directory assistance" means an "ancillary

13 service" of providing telephone number information,

14 and/or address information.

15 "Home service provider" means the facilities based

16 carrier or reseller with which the customer contracts

17 for the provision of mobile telecommunications

18 services.

19 "Mobile telecommunications service" means

20 commercial mobile radio service, as defined in Section

21 20.3 of Title 47 of the Code of Federal Regulations as

22 in effect on June 1, 1999.

23 "Place of primary use" means the street address

24 representative of where the customer's use of the

25 telecommunications service primarily occurs, which

26 must be the residential street address or the primary

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1 business street address of the customer. In the case of

2 mobile telecommunications services, "place of primary

3 use" must be within the licensed service area of the

4 home service provider.

5 "Post-paid telecommunication service" means the

6 telecommunications service obtained by making a

7 payment on a call-by-call basis either through the use

8 of a credit card or payment mechanism such as a bank

9 card, travel card, credit card, or debit card, or by

10 charge made to a telephone number which is not

11 associated with the origination or termination of the

12 telecommunications service. A post-paid calling

13 service includes telecommunications service, except a

14 prepaid wireless calling service, that would be a

15 prepaid calling service except it is not exclusively a

16 telecommunication service.

17 "Prepaid telecommunication service" means the

18 right to access exclusively telecommunications

19 services, which must be paid for in advance and which

20 enables the origination of calls using an access number

21 or authorization code, whether manually or

22 electronically dialed, and that is sold in

23 predetermined units or dollars of which the number

24 declines with use in a known amount.

25 "Prepaid Mobile telecommunication service" means a

26 telecommunications service that provides the right to

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1 utilize mobile wireless service as well as other

2 non-telecommunication services, including but not

3 limited to ancillary services, which must be paid for

4 in advance that is sold in predetermined units or

5 dollars of which the number declines with use in a

6 known amount.

7 "Private communication service" means a

8 telecommunication service that entitles the customer

9 to exclusive or priority use of a communications

10 channel or group of channels between or among

11 termination points, regardless of the manner in which

12 such channel or channels are connected, and includes

13 switching capacity, extension lines, stations, and any

14 other associated services that are provided in

15 connection with the use of such channel or channels.

16 "Service address" means:

17 (a) The location of the telecommunications

18 equipment to which a customer's call is charged and

19 from which the call originates or terminates,

20 regardless of where the call is billed or paid;

21 (b) If the location in line (a) is not known,

22 service address means the origination point of the

23 signal of the telecommunications services first

24 identified by either the seller's

25 telecommunications system or in information

26 received by the seller from its service provider

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1 where the system used to transport such signals is

2 not that of the seller; and

3 (c) If the locations in line (a) and line (b)

4 are not known, the service address means the

5 location of the customer's place of primary use.

6 "Telecommunications service" means the electronic

7 transmission, conveyance, or routing of voice, data,

8 audio, video, or any other information or signals to a

9 point, or between or among points. The term

10 "telecommunications service" includes such

11 transmission, conveyance, or routing in which computer

12 processing applications are used to act on the form,

13 code or protocol of the content for purposes of

14 transmission, conveyance or routing without regard to

15 whether such service is referred to as voice over

16 Internet protocol services or is classified by the

17 Federal Communications Commission as enhanced or value

18 added. "Telecommunications service" does not include:

19 (a) Data processing and information services

20 that allow data to be generated, acquired, stored,

21 processed, or retrieved and delivered by an

22 electronic transmission to a purchaser when such

23 purchaser's primary purpose for the underlying

24 transaction is the processed data or information;

25 (b) Installation or maintenance of wiring or

26 equipment on a customer's premises;

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1 (c) Tangible personal property;

2 (d) Advertising, including but not limited to

3 directory advertising; ~~.~~

4 (e) Billing and collection services provided

5 to third parties;

6 (f) Internet access service;

7 (g) Radio and television audio and video

8 programming services, regardless of the medium,

9 including the furnishing of transmission,

10 conveyance and routing of such services by the

11 programming service provider. Radio and television

12 audio and video programming services shall include

13 but not be limited to cable service as defined in

14 47 USC 522(6) and audio and video programming

15 services delivered by commercial mobile radio

16 service providers, as defined in 47 CFR 20.3;

17 (h) "Ancillary services"; or

18 (i) Digital products "delivered

19 electronically", including but not limited to

20 software, music, video, reading materials or ring

21 tones.

22 "Vertical service" means an "ancillary service"

23 that is offered in connection with one or more

24 "telecommunications services", which offers advanced

25 calling features that allow customers to identify

26 callers and to manage multiple calls and call

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1 connections, including "conference bridging services".

2 "Voice mail service" means an "ancillary service"

3 that enables the customer to store, send or receive

4 recorded messages. "Voice mail service" does not

5 include any "vertical services" that the customer may

6 be required to have in order to utilize the "voice mail

7 service".

8 (ii) Receipts from the sale of telecommunications

9 service sold on an individual call-by-call basis are in

10 this State if either of the following applies:

11 (a) The call both originates and terminates in

12 this State.

13 (b) The call either originates or terminates

14 in this State and the service address is located in

15 this State.

16 (iii) Receipts from the sale of postpaid

17 telecommunications service at retail are in this State

18 if the origination point of the telecommunication

19 signal, as first identified by the service provider's

20 telecommunication system or as identified by

21 information received by the seller from its service

22 provider if the system used to transport

23 telecommunication signals is not the seller's, is

24 located in this State.

25 (iv) Receipts from the sale of prepaid

26 telecommunications service or prepaid mobile

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1 telecommunications service at retail are in this State

2 if the purchaser obtains the prepaid card or similar

3 means of conveyance at a location in this State.

4 Receipts from recharging a prepaid telecommunications

5 service or mobile telecommunications service is in

6 this State if the purchaser's billing information

7 indicates a location in this State.

8 (v) Receipts from the sale of private

9 communication services are in this State as follows:

10 (a) 100% of receipts from charges imposed at

11 each channel termination point in this State.

12 (b) 100% of receipts from charges for the total

13 channel mileage between each channel termination

14 point in this State.

15 (c) 50% of the total receipts from charges for

16 service segments when those segments are between 2

17 customer channel termination points, 1 of which is

18 located in this State and the other is located

19 outside of this State, which segments are

20 separately charged.

21 (d) The receipts from charges for service

22 segments with a channel termination point located

23 in this State and in two or more other states, and

24 which segments are not separately billed, are in

25 this State based on a percentage determined by

26 dividing the number of customer channel

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1 termination points in this State by the total

2 number of customer channel termination points.

3 (vi) Receipts from charges for ancillary services

4 for telecommunications service sold to customers at

5 retail are in this State if the customer's primary

6 place of use of telecommunications services associated

7 with those ancillary services is in this State. If the

8 seller of those ancillary services cannot determine

9 where the associated telecommunications are located,

10 then the ancillary services shall be based on the

11 location of the purchaser.

12 (vii) Receipts to access a carrier's network or

13 from the sale of telecommunication services or

14 ancillary services for resale are in this State as

15 follows:

16 (a) 100% of the receipts from access fees

17 attributable to intrastate telecommunications

18 service that both originates and terminates in

19 this State.

20 (b) 50% of the receipts from access fees

21 attributable to interstate telecommunications

22 service if the interstate call either originates

23 or terminates in this State.

24 (c) 100% of the receipts from interstate end

25 user access line charges, if the customer's

26 service address is in this State. As used in this

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1 subdivision, "interstate end user access line

2 charges" includes, but is not limited to, the

3 surcharge approved by the federal communications

4 commission and levied pursuant to 47 CFR 69.

5 (d) Gross receipts from sales of

6 telecommunication services or from ancillary

7 services for telecommunications services sold to

8 other telecommunication service providers for

9 resale shall be sourced to this State using the

10 apportionment concepts used for non-resale

11 receipts of telecommunications services if the

12 information is readily available to make that

13 determination. If the information is not readily

14 available, then the taxpayer may use any other

15 reasonable and consistent method.

16 (B-7) For taxable years ending on or after December 31,

17 2008, receipts from the sale of broadcasting services are

18 in this State if the broadcasting services are received in

19 this State. For purposes of this paragraph (B-7), the

20 following terms have the following meanings:

21 "Advertising revenue" means consideration received

22 by the taxpayer in exchange for broadcasting services

23 or allowing the broadcasting of commercials or

24 announcements in connection with the broadcasting of

25 film or radio programming, from sponsorships of the

26 programming, or from product placements in the

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1 programming.

2 "Audience factor" means the ratio that the

3 audience or subscribers located in this State of a

4 station, a network, or a cable system bears to the

5 total audience or total subscribers for that station,

6 network, or cable system. The audience factor for film

7 or radio programming shall be determined by reference

8 to the books and records of the taxpayer or by

9 reference to published rating statistics provided the

10 method used by the taxpayer is consistently used from

11 year to year for this purpose and fairly represents the

12 taxpayer's activity in this State.

13 "Broadcast" or "broadcasting" or "broadcasting

14 services" means the transmission or provision of film

15 or radio programming, whether through the public

16 airwaves, by cable, by direct or indirect satellite

17 transmission, or by any other means of communication,

18 either through a station, a network, or a cable system.

19 "Film" or "film programming" means the broadcast

20 on television of any and all performances, events, or

21 productions, including but not limited to news,

22 sporting events, plays, stories, or other literary,

23 commercial, educational, or artistic works, either

24 live or through the use of video tape, disc, or any

25 other type of format or medium. Each episode of a

26 series of films produced for television shall

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1 constitute separate "film" notwithstanding that the

2 series relates to the same principal subject and is

3 produced during one or more tax periods.

4 "Radio" or "radio programming" means the broadcast

5 on radio of any and all performances, events, or

6 productions, including but not limited to news,

7 sporting events, plays, stories, or other literary,

8 commercial, educational, or artistic works, either

9 live or through the use of an audio tape, disc, or any

10 other format or medium. Each episode in a series of

11 radio programming produced for radio broadcast shall

12 constitute a separate "radio programming"

13 notwithstanding that the series relates to the same

14 principal subject and is produced during one or more

15 tax periods.

16 (i) In the case of advertising revenue from

17 broadcasting, the customer is the advertiser and

18 the service is received in this State if the

19 commercial domicile of the advertiser is in this

20 State.

21 (ii) In the case where film or radio

22 programming is broadcast by a station, a network,

23 or a cable system for a fee or other remuneration

24 received from the recipient of the broadcast, the

25 portion of the service that is received in this

26 State is measured by the portion of the recipients

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1 of the broadcast located in this State.

2 Accordingly, the fee or other remuneration for

3 such service that is included in the Illinois

4 numerator of the sales factor is the total of those

5 fees or other remuneration received from

6 recipients in Illinois. For purposes of this

7 paragraph, a taxpayer may determine the location

8 of the recipients of its broadcast using the

9 address of the recipient shown in its contracts

10 with the recipient or using the billing address of

11 the recipient in the taxpayer's records.

12 (iii) In the case where film or radio

13 programming is broadcast by a station, a network,

14 or a cable system for a fee or other remuneration

15 from the person providing the programming, the

16 portion of the broadcast service that is received

17 by such station, network, or cable system in this

18 State is measured by the portion of recipients of

19 the broadcast located in this State. Accordingly,

20 the amount of revenue related to such an

21 arrangement that is included in the Illinois

22 numerator of the sales factor is the total fee or

23 other total remuneration from the person providing

24 the programming related to that broadcast

25 multiplied by the Illinois audience factor for

26 that broadcast.

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1 (iv) In the case where film or radio

2 programming is provided by a taxpayer that is a

3 network or station to a customer for broadcast in

4 exchange for a fee or other remuneration from that

5 customer the broadcasting service is received at

6 the location of the office of the customer from

7 which the services were ordered in the regular

8 course of the customer's trade or business.

9 Accordingly, in such a case the revenue derived by

10 the taxpayer that is included in the taxpayer's

11 Illinois numerator of the sales factor is the

12 revenue from such customers who receive the

13 broadcasting service in Illinois.

14 (v) In the case where film or radio programming

15 is provided by a taxpayer that is not a network or

16 station to another person for broadcasting in

17 exchange for a fee or other remuneration from that

18 person, the broadcasting service is received at

19 the location of the office of the customer from

20 which the services were ordered in the regular

21 course of the customer's trade or business.

22 Accordingly, in such a case the revenue derived by

23 the taxpayer that is included in the taxpayer's

24 Illinois numerator of the sales factor is the

25 revenue from such customers who receive the

26 broadcasting service in Illinois.

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1 (B-8) Gross receipts from winnings under the Illinois

2 Lottery Law from the assignment of a prize under Section

3 13.1 of the Illinois Lottery Law are received in this

4 State. This paragraph (B-8) applies only to taxable years

5 ending on or after December 31, 2013.

6 (B-9) For taxable years ending on or after December 31,

7 2017, gross receipts from winnings from pari-mutuel

8 wagering conducted at a wagering facility licensed under

9 the Illinois Horse Racing Act of 1975 or from winnings from

10 gambling games conducted on a riverboat or in a casino or

11 electronic gaming facility licensed under the Illinois

12 Gambling Act are in this State.

13 (C) For taxable years ending before December 31, 2008,

14 sales, other than sales governed by paragraphs (B), (B-1),

15 (B-2), and (B-8) are in this State if:

16 (i) The income-producing activity is performed in

17 this State; or

18 (ii) The income-producing activity is performed

19 both within and without this State and a greater

20 proportion of the income-producing activity is

21 performed within this State than without this State,

22 based on performance costs.

23 (C-5) For taxable years ending on or after December 31,

24 2008, sales, other than sales governed by paragraphs (B),

25 (B-1), (B-2), (B-5), and (B-7), are in this State if any of

26 the following criteria are met:

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1 (i) Sales from the sale or lease of real property

2 are in this State if the property is located in this

3 State.

4 (ii) Sales from the lease or rental of tangible

5 personal property are in this State if the property is

6 located in this State during the rental period. Sales

7 from the lease or rental of tangible personal property

8 that is characteristically moving property, including,

9 but not limited to, motor vehicles, rolling stock,

10 aircraft, vessels, or mobile equipment are in this

11 State to the extent that the property is used in this

12 State.

13 (iii) In the case of interest, net gains (but not

14 less than zero) and other items of income from

15 intangible personal property, the sale is in this State

16 if:

17 (a) in the case of a taxpayer who is a dealer

18 in the item of intangible personal property within

19 the meaning of Section 475 of the Internal Revenue

20 Code, the income or gain is received from a

21 customer in this State. For purposes of this

22 subparagraph, a customer is in this State if the

23 customer is an individual, trust or estate who is a

24 resident of this State and, for all other

25 customers, if the customer's commercial domicile

26 is in this State. Unless the dealer has actual

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1 knowledge of the residence or commercial domicile

2 of a customer during a taxable year, the customer

3 shall be deemed to be a customer in this State if

4 the billing address of the customer, as shown in

5 the records of the dealer, is in this State; or

6 (b) in all other cases, if the

7 income-producing activity of the taxpayer is

8 performed in this State or, if the

9 income-producing activity of the taxpayer is

10 performed both within and without this State, if a

11 greater proportion of the income-producing

12 activity of the taxpayer is performed within this

13 State than in any other state, based on performance

14 costs.

15 (iv) Sales of services are in this State if the

16 services are received in this State. For the purposes

17 of this section, gross receipts from the performance of

18 services provided to a corporation, partnership, or

19 trust may only be attributed to a state where that

20 corporation, partnership, or trust has a fixed place of

21 business. If the state where the services are received

22 is not readily determinable or is a state where the

23 corporation, partnership, or trust receiving the

24 service does not have a fixed place of business, the

25 services shall be deemed to be received at the location

26 of the office of the customer from which the services

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1 were ordered in the regular course of the customer's

2 trade or business. If the ordering office cannot be

3 determined, the services shall be deemed to be received

4 at the office of the customer to which the services are

5 billed. If the taxpayer is not taxable in the state in

6 which the services are received, the sale must be

7 excluded from both the numerator and the denominator of

8 the sales factor. The Department shall adopt rules

9 prescribing where specific types of service are

10 received, including, but not limited to, publishing,

11 and utility service.

12 (D) For taxable years ending on or after December 31,

13 1995, the following items of income shall not be included

14 in the numerator or denominator of the sales factor:

15 dividends; amounts included under Section 78 of the

16 Internal Revenue Code; and Subpart F income as defined in

17 Section 952 of the Internal Revenue Code. No inference

18 shall be drawn from the enactment of this paragraph (D) in

19 construing this Section for taxable years ending before

20 December 31, 1995.

21 (E) Paragraphs (B-1) and (B-2) shall apply to tax years

22 ending on or after December 31, 1999, provided that a

23 taxpayer may elect to apply the provisions of these

24 paragraphs to prior tax years. Such election shall be made

25 in the form and manner prescribed by the Department, shall

26 be irrevocable, and shall apply to all tax years; provided

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1 that, if a taxpayer's Illinois income tax liability for any

2 tax year, as assessed under Section 903 prior to January 1,

3 1999, was computed in a manner contrary to the provisions

4 of paragraphs (B-1) or (B-2), no refund shall be payable to

5 the taxpayer for that tax year to the extent such refund is

6 the result of applying the provisions of paragraph (B-1) or

7 (B-2) retroactively. In the case of a unitary business

8 group, such election shall apply to all members of such

9 group for every tax year such group is in existence, but

10 shall not apply to any taxpayer for any period during which

11 that taxpayer is not a member of such group.

12 (b) Insurance companies.

13 (1) In general. Except as otherwise provided by

14 paragraph (2), business income of an insurance company for

15 a taxable year shall be apportioned to this State by

16 multiplying such income by a fraction, the numerator of

17 which is the direct premiums written for insurance upon

18 property or risk in this State, and the denominator of

19 which is the direct premiums written for insurance upon

20 property or risk everywhere. For purposes of this

21 subsection, the term "direct premiums written" means the

22 total amount of direct premiums written, assessments and

23 annuity considerations as reported for the taxable year on

24 the annual statement filed by the company with the Illinois

25 Director of Insurance in the form approved by the National

26 Convention of Insurance Commissioners or such other form as

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1 may be prescribed in lieu thereof.

2 (2) Reinsurance. If the principal source of premiums

3 written by an insurance company consists of premiums for

4 reinsurance accepted by it, the business income of such

5 company shall be apportioned to this State by multiplying

6 such income by a fraction, the numerator of which is the

7 sum of (i) direct premiums written for insurance upon

8 property or risk in this State, plus (ii) premiums written

9 for reinsurance accepted in respect of property or risk in

10 this State, and the denominator of which is the sum of

11 (iii) direct premiums written for insurance upon property

12 or risk everywhere, plus (iv) premiums written for

13 reinsurance accepted in respect of property or risk

14 everywhere. For purposes of this paragraph, premiums

15 written for reinsurance accepted in respect of property or

16 risk in this State, whether or not otherwise determinable,

17 may, at the election of the company, be determined on the

18 basis of the proportion which premiums written for

19 reinsurance accepted from companies commercially domiciled

20 in Illinois bears to premiums written for reinsurance

21 accepted from all sources, or, alternatively, in the

22 proportion which the sum of the direct premiums written for

23 insurance upon property or risk in this State by each

24 ceding company from which reinsurance is accepted bears to

25 the sum of the total direct premiums written by each such

26 ceding company for the taxable year. The election made by a

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1 company under this paragraph for its first taxable year

2 ending on or after December 31, 2011, shall be binding for

3 that company for that taxable year and for all subsequent

4 taxable years, and may be altered only with the written

5 permission of the Department, which shall not be

6 unreasonably withheld.

7 (c) Financial organizations.

8 (1) In general. For taxable years ending before

9 December 31, 2008, business income of a financial

10 organization shall be apportioned to this State by

11 multiplying such income by a fraction, the numerator of

12 which is its business income from sources within this

13 State, and the denominator of which is its business income

14 from all sources. For the purposes of this subsection, the

15 business income of a financial organization from sources

16 within this State is the sum of the amounts referred to in

17 subparagraphs (A) through (E) following, but excluding the

18 adjusted income of an international banking facility as

19 determined in paragraph (2):

20 (A) Fees, commissions or other compensation for

21 financial services rendered within this State;

22 (B) Gross profits from trading in stocks, bonds or

23 other securities managed within this State;

24 (C) Dividends, and interest from Illinois

25 customers, which are received within this State;

26 (D) Interest charged to customers at places of

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1 business maintained within this State for carrying

2 debit balances of margin accounts, without deduction

3 of any costs incurred in carrying such accounts; and

4 (E) Any other gross income resulting from the

5 operation as a financial organization within this

6 State. In computing the amounts referred to in

7 paragraphs (A) through (E) of this subsection, any

8 amount received by a member of an affiliated group

9 (determined under Section 1504(a) of the Internal

10 Revenue Code but without reference to whether any such

11 corporation is an "includible corporation" under

12 Section 1504(b) of the Internal Revenue Code) from

13 another member of such group shall be included only to

14 the extent such amount exceeds expenses of the

15 recipient directly related thereto.

16 (2) International Banking Facility. For taxable years

17 ending before December 31, 2008:

18 (A) Adjusted Income. The adjusted income of an

19 international banking facility is its income reduced

20 by the amount of the floor amount.

21 (B) Floor Amount. The floor amount shall be the

22 amount, if any, determined by multiplying the income of

23 the international banking facility by a fraction, not

24 greater than one, which is determined as follows:

25 (i) The numerator shall be:

26 The average aggregate, determined on a

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1 quarterly basis, of the financial organization's

2 loans to banks in foreign countries, to foreign

3 domiciled borrowers (except where secured

4 primarily by real estate) and to foreign

5 governments and other foreign official

6 institutions, as reported for its branches,

7 agencies and offices within the state on its

8 "Consolidated Report of Condition", Schedule A,

9 Lines 2.c., 5.b., and 7.a., which was filed with

10 the Federal Deposit Insurance Corporation and

11 other regulatory authorities, for the year 1980,

12 minus

13 The average aggregate, determined on a

14 quarterly basis, of such loans (other than loans of

15 an international banking facility), as reported by

16 the financial institution for its branches,

17 agencies and offices within the state, on the

18 corresponding Schedule and lines of the

19 Consolidated Report of Condition for the current

20 taxable year, provided, however, that in no case

21 shall the amount determined in this clause (the

22 subtrahend) exceed the amount determined in the

23 preceding clause (the minuend); and

24 (ii) the denominator shall be the average

25 aggregate, determined on a quarterly basis, of the

26 international banking facility's loans to banks in

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1 foreign countries, to foreign domiciled borrowers

2 (except where secured primarily by real estate)

3 and to foreign governments and other foreign

4 official institutions, which were recorded in its

5 financial accounts for the current taxable year.

6 (C) Change to Consolidated Report of Condition and

7 in Qualification. In the event the Consolidated Report

8 of Condition which is filed with the Federal Deposit

9 Insurance Corporation and other regulatory authorities

10 is altered so that the information required for

11 determining the floor amount is not found on Schedule

12 A, lines 2.c., 5.b. and 7.a., the financial institution

13 shall notify the Department and the Department may, by

14 regulations or otherwise, prescribe or authorize the

15 use of an alternative source for such information. The

16 financial institution shall also notify the Department

17 should its international banking facility fail to

18 qualify as such, in whole or in part, or should there

19 be any amendment or change to the Consolidated Report

20 of Condition, as originally filed, to the extent such

21 amendment or change alters the information used in

22 determining the floor amount.

23 (3) For taxable years ending on or after December 31,

24 2008, the business income of a financial organization shall

25 be apportioned to this State by multiplying such income by

26 a fraction, the numerator of which is its gross receipts

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1 from sources in this State or otherwise attributable to

2 this State's marketplace and the denominator of which is

3 its gross receipts everywhere during the taxable year.

4 "Gross receipts" for purposes of this subparagraph (3)

5 means gross income, including net taxable gain on

6 disposition of assets, including securities and money

7 market instruments, when derived from transactions and

8 activities in the regular course of the financial

9 organization's trade or business. The following examples

10 are illustrative:

11 (i) Receipts from the lease or rental of real or

12 tangible personal property are in this State if the

13 property is located in this State during the rental

14 period. Receipts from the lease or rental of tangible

15 personal property that is characteristically moving

16 property, including, but not limited to, motor

17 vehicles, rolling stock, aircraft, vessels, or mobile

18 equipment are from sources in this State to the extent

19 that the property is used in this State.

20 (ii) Interest income, commissions, fees, gains on

21 disposition, and other receipts from assets in the

22 nature of loans that are secured primarily by real

23 estate or tangible personal property are from sources

24 in this State if the security is located in this State.

25 (iii) Interest income, commissions, fees, gains on

26 disposition, and other receipts from consumer loans

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1 that are not secured by real or tangible personal

2 property are from sources in this State if the debtor

3 is a resident of this State.

4 (iv) Interest income, commissions, fees, gains on

5 disposition, and other receipts from commercial loans

6 and installment obligations that are not secured by

7 real or tangible personal property are from sources in

8 this State if the proceeds of the loan are to be

9 applied in this State. If it cannot be determined where

10 the funds are to be applied, the income and receipts

11 are from sources in this State if the office of the

12 borrower from which the loan was negotiated in the

13 regular course of business is located in this State. If

14 the location of this office cannot be determined, the

15 income and receipts shall be excluded from the

16 numerator and denominator of the sales factor.

17 (v) Interest income, fees, gains on disposition,

18 service charges, merchant discount income, and other

19 receipts from credit card receivables are from sources

20 in this State if the card charges are regularly billed

21 to a customer in this State.

22 (vi) Receipts from the performance of services,

23 including, but not limited to, fiduciary, advisory,

24 and brokerage services, are in this State if the

25 services are received in this State within the meaning

26 of subparagraph (a)(3)(C-5)(iv) of this Section.

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1 (vii) Receipts from the issuance of travelers

2 checks and money orders are from sources in this State

3 if the checks and money orders are issued from a

4 location within this State.

5 (viii) Receipts from investment assets and

6 activities and trading assets and activities are

7 included in the receipts factor as follows:

8 (1) Interest, dividends, net gains (but not

9 less than zero) and other income from investment

10 assets and activities from trading assets and

11 activities shall be included in the receipts

12 factor. Investment assets and activities and

13 trading assets and activities include but are not

14 limited to: investment securities; trading account

15 assets; federal funds; securities purchased and

16 sold under agreements to resell or repurchase;

17 options; futures contracts; forward contracts;

18 notional principal contracts such as swaps;

19 equities; and foreign currency transactions. With

20 respect to the investment and trading assets and

21 activities described in subparagraphs (A) and (B)

22 of this paragraph, the receipts factor shall

23 include the amounts described in such

24 subparagraphs.

25 (A) The receipts factor shall include the

26 amount by which interest from federal funds

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1 sold and securities purchased under resale

2 agreements exceeds interest expense on federal

3 funds purchased and securities sold under

4 repurchase agreements.

5 (B) The receipts factor shall include the

6 amount by which interest, dividends, gains and

7 other income from trading assets and

8 activities, including but not limited to

9 assets and activities in the matched book, in

10 the arbitrage book, and foreign currency

11 transactions, exceed amounts paid in lieu of

12 interest, amounts paid in lieu of dividends,

13 and losses from such assets and activities.

14 (2) The numerator of the receipts factor

15 includes interest, dividends, net gains (but not

16 less than zero), and other income from investment

17 assets and activities and from trading assets and

18 activities described in paragraph (1) of this

19 subsection that are attributable to this State.

20 (A) The amount of interest, dividends, net

21 gains (but not less than zero), and other

22 income from investment assets and activities

23 in the investment account to be attributed to

24 this State and included in the numerator is

25 determined by multiplying all such income from

26 such assets and activities by a fraction, the

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1 numerator of which is the gross income from

2 such assets and activities which are properly

3 assigned to a fixed place of business of the

4 taxpayer within this State and the denominator

5 of which is the gross income from all such

6 assets and activities.

7 (B) The amount of interest from federal

8 funds sold and purchased and from securities

9 purchased under resale agreements and

10 securities sold under repurchase agreements

11 attributable to this State and included in the

12 numerator is determined by multiplying the

13 amount described in subparagraph (A) of

14 paragraph (1) of this subsection from such

15 funds and such securities by a fraction, the

16 numerator of which is the gross income from

17 such funds and such securities which are

18 properly assigned to a fixed place of business

19 of the taxpayer within this State and the

20 denominator of which is the gross income from

21 all such funds and such securities.

22 (C) The amount of interest, dividends,

23 gains, and other income from trading assets and

24 activities, including but not limited to

25 assets and activities in the matched book, in

26 the arbitrage book and foreign currency

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1 transactions (but excluding amounts described

2 in subparagraphs (A) or (B) of this paragraph),

3 attributable to this State and included in the

4 numerator is determined by multiplying the

5 amount described in subparagraph (B) of

6 paragraph (1) of this subsection by a fraction,

7 the numerator of which is the gross income from

8 such trading assets and activities which are

9 properly assigned to a fixed place of business

10 of the taxpayer within this State and the

11 denominator of which is the gross income from

12 all such assets and activities.

13 (D) Properly assigned, for purposes of

14 this paragraph (2) of this subsection, means

15 the investment or trading asset or activity is

16 assigned to the fixed place of business with

17 which it has a preponderance of substantive

18 contacts. An investment or trading asset or

19 activity assigned by the taxpayer to a fixed

20 place of business without the State shall be

21 presumed to have been properly assigned if:

22 (i) the taxpayer has assigned, in the

23 regular course of its business, such asset

24 or activity on its records to a fixed place

25 of business consistent with federal or

26 state regulatory requirements;

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1 (ii) such assignment on its records is

2 based upon substantive contacts of the

3 asset or activity to such fixed place of

4 business; and

5 (iii) the taxpayer uses such records

6 reflecting assignment of such assets or

7 activities for the filing of all state and

8 local tax returns for which an assignment

9 of such assets or activities to a fixed

10 place of business is required.

11 (E) The presumption of proper assignment

12 of an investment or trading asset or activity

13 provided in subparagraph (D) of paragraph (2)

14 of this subsection may be rebutted upon a

15 showing by the Department, supported by a

16 preponderance of the evidence, that the

17 preponderance of substantive contacts

18 regarding such asset or activity did not occur

19 at the fixed place of business to which it was

20 assigned on the taxpayer's records. If the

21 fixed place of business that has a

22 preponderance of substantive contacts cannot

23 be determined for an investment or trading

24 asset or activity to which the presumption in

25 subparagraph (D) of paragraph (2) of this

26 subsection does not apply or with respect to

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1 which that presumption has been rebutted, that

2 asset or activity is properly assigned to the

3 state in which the taxpayer's commercial

4 domicile is located. For purposes of this

5 subparagraph (E), it shall be presumed,

6 subject to rebuttal, that taxpayer's

7 commercial domicile is in the state of the

8 United States or the District of Columbia to

9 which the greatest number of employees are

10 regularly connected with the management of the

11 investment or trading income or out of which

12 they are working, irrespective of where the

13 services of such employees are performed, as of

14 the last day of the taxable year.

15 (4) (Blank).

16 (5) (Blank).

17 (c-1) Federally regulated exchanges. For taxable years

18 ending on or after December 31, 2012, business income of a

19 federally regulated exchange shall, at the option of the

20 federally regulated exchange, be apportioned to this State by

21 multiplying such income by a fraction, the numerator of which

22 is its business income from sources within this State, and the

23 denominator of which is its business income from all sources.

24 For purposes of this subsection, the business income within

25 this State of a federally regulated exchange is the sum of the

26 following:

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1 (1) Receipts attributable to transactions executed on

2 a physical trading floor if that physical trading floor is

3 located in this State.

4 (2) Receipts attributable to all other matching,

5 execution, or clearing transactions, including without

6 limitation receipts from the provision of matching,

7 execution, or clearing services to another entity,

8 multiplied by (i) for taxable years ending on or after

9 December 31, 2012 but before December 31, 2013, 63.77%; and

10 (ii) for taxable years ending on or after December 31,

11 2013, 27.54%.

12 (3) All other receipts not governed by subparagraphs

13 (1) or (2) of this subsection (c-1), to the extent the

14 receipts would be characterized as "sales in this State"

15 under item (3) of subsection (a) of this Section.

16 "Federally regulated exchange" means (i) a "registered

17 entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),

18 or (C), (ii) an "exchange" or "clearing agency" within the

19 meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such

20 entities regulated under any successor regulatory structure to

21 the foregoing, and (iv) all taxpayers who are members of the

22 same unitary business group as a federally regulated exchange,

23 determined without regard to the prohibition in Section

24 1501(a)(27) of this Act against including in a unitary business

25 group taxpayers who are ordinarily required to apportion

26 business income under different subsections of this Section;

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1 provided that this subparagraph (iv) shall apply only if 50% or

2 more of the business receipts of the unitary business group

3 determined by application of this subparagraph (iv) for the

4 taxable year are attributable to the matching, execution, or

5 clearing of transactions conducted by an entity described in

6 subparagraph (i), (ii), or (iii) of this paragraph.

7 In no event shall the Illinois apportionment percentage

8 computed in accordance with this subsection (c-1) for any

9 taxpayer for any tax year be less than the Illinois

10 apportionment percentage computed under this subsection (c-1)

11 for that taxpayer for the first full tax year ending on or

12 after December 31, 2013 for which this subsection (c-1) applied

13 to the taxpayer.

14 (d) Transportation services. For taxable years ending

15 before December 31, 2008, business income derived from

16 furnishing transportation services shall be apportioned to

17 this State in accordance with paragraphs (1) and (2):

18 (1) Such business income (other than that derived from

19 transportation by pipeline) shall be apportioned to this

20 State by multiplying such income by a fraction, the

21 numerator of which is the revenue miles of the person in

22 this State, and the denominator of which is the revenue

23 miles of the person everywhere. For purposes of this

24 paragraph, a revenue mile is the transportation of 1

25 passenger or 1 net ton of freight the distance of 1 mile

26 for a consideration. Where a person is engaged in the

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1 transportation of both passengers and freight, the

2 fraction above referred to shall be determined by means of

3 an average of the passenger revenue mile fraction and the

4 freight revenue mile fraction, weighted to reflect the

5 person's

6 (A) relative railway operating income from total

7 passenger and total freight service, as reported to the

8 Interstate Commerce Commission, in the case of

9 transportation by railroad, and

10 (B) relative gross receipts from passenger and

11 freight transportation, in case of transportation

12 other than by railroad.

13 (2) Such business income derived from transportation

14 by pipeline shall be apportioned to this State by

15 multiplying such income by a fraction, the numerator of

16 which is the revenue miles of the person in this State, and

17 the denominator of which is the revenue miles of the person

18 everywhere. For the purposes of this paragraph, a revenue

19 mile is the transportation by pipeline of 1 barrel of oil,

20 1,000 cubic feet of gas, or of any specified quantity of

21 any other substance, the distance of 1 mile for a

22 consideration.

23 (3) For taxable years ending on or after December 31,

24 2008, business income derived from providing

25 transportation services other than airline services shall

26 be apportioned to this State by using a fraction, (a) the

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1 numerator of which shall be (i) all receipts from any

2 movement or shipment of people, goods, mail, oil, gas, or

3 any other substance (other than by airline) that both

4 originates and terminates in this State, plus (ii) that

5 portion of the person's gross receipts from movements or

6 shipments of people, goods, mail, oil, gas, or any other

7 substance (other than by airline) that originates in one

8 state or jurisdiction and terminates in another state or

9 jurisdiction, that is determined by the ratio that the

10 miles traveled in this State bears to total miles

11 everywhere and (b) the denominator of which shall be all

12 revenue derived from the movement or shipment of people,

13 goods, mail, oil, gas, or any other substance (other than

14 by airline). Where a taxpayer is engaged in the

15 transportation of both passengers and freight, the

16 fraction above referred to shall first be determined

17 separately for passenger miles and freight miles. Then an

18 average of the passenger miles fraction and the freight

19 miles fraction shall be weighted to reflect the taxpayer's:

20 (A) relative railway operating income from total

21 passenger and total freight service, as reported to the

22 Surface Transportation Board, in the case of

23 transportation by railroad; and

24 (B) relative gross receipts from passenger and

25 freight transportation, in case of transportation

26 other than by railroad.

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1 (4) For taxable years ending on or after December 31,

2 2008, business income derived from furnishing airline

3 transportation services shall be apportioned to this State

4 by multiplying such income by a fraction, the numerator of

5 which is the revenue miles of the person in this State, and

6 the denominator of which is the revenue miles of the person

7 everywhere. For purposes of this paragraph, a revenue mile

8 is the transportation of one passenger or one net ton of

9 freight the distance of one mile for a consideration. If a

10 person is engaged in the transportation of both passengers

11 and freight, the fraction above referred to shall be

12 determined by means of an average of the passenger revenue

13 mile fraction and the freight revenue mile fraction,

14 weighted to reflect the person's relative gross receipts

15 from passenger and freight airline transportation.

16 (e) Combined apportionment. Where 2 or more persons are

17 engaged in a unitary business as described in subsection

18 (a)(27) of Section 1501, a part of which is conducted in this

19 State by one or more members of the group, the business income

20 attributable to this State by any such member or members shall

21 be apportioned by means of the combined apportionment method.

22 (f) Alternative allocation. If the allocation and

23 apportionment provisions of subsections (a) through (e) and of

24 subsection (h) do not, for taxable years ending before December

25 31, 2008, fairly represent the extent of a person's business

26 activity in this State, or, for taxable years ending on or

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1 after December 31, 2008, fairly represent the market for the

2 person's goods, services, or other sources of business income,

3 the person may petition for, or the Director may, without a

4 petition, permit or require, in respect of all or any part of

5 the person's business activity, if reasonable:

6 (1) Separate accounting;

7 (2) The exclusion of any one or more factors;

8 (3) The inclusion of one or more additional factors

9 which will fairly represent the person's business

10 activities or market in this State; or

11 (4) The employment of any other method to effectuate an

12 equitable allocation and apportionment of the person's

13 business income.

14 (g) Cross reference. For allocation of business income by

15 residents, see Section 301(a).

16 (h) For tax years ending on or after December 31, 1998, the

17 apportionment factor of persons who apportion their business

18 income to this State under subsection (a) shall be equal to:

19 (1) for tax years ending on or after December 31, 1998

20 and before December 31, 1999, 16 2/3% of the property

21 factor plus 16 2/3% of the payroll factor plus 66 2/3% of

22 the sales factor;

23 (2) for tax years ending on or after December 31, 1999

24 and before December 31, 2000, 8 1/3% of the property factor

25 plus 8 1/3% of the payroll factor plus 83 1/3% of the sales

26 factor;

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1 (3) for tax years ending on or after December 31, 2000,

2 the sales factor.

3 If, in any tax year ending on or after December 31, 1998 and

4 before December 31, 2000, the denominator of the payroll,

5 property, or sales factor is zero, the apportionment factor

6 computed in paragraph (1) or (2) of this subsection for that

7 year shall be divided by an amount equal to 100% minus the

8 percentage weight given to each factor whose denominator is

9 equal to zero.

10 (Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,

11 eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)

12 (35 ILCS 5/710) (from Ch. 120, par. 7-710)

13 Sec. 710. Withholding from lottery winnings.

14 (a) In general.

15 (1) Any person making a payment to a resident or

16 nonresident of winnings under the Illinois Lottery Law and

17 not required to withhold Illinois income tax from such

18 payment under Subsection (b) of Section 701 of this Act

19 because those winnings are not subject to Federal income

20 tax withholding, must withhold Illinois income tax from

21 such payment at a rate equal to the percentage tax rate for

22 individuals provided in subsection (b) of Section 201,

23 provided that withholding is not required if such payment

24 of winnings is less than $1,000.

25 (2) In the case of an assignment of a lottery prize

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1 under Section 13.1 of the Illinois Lottery Law, any person

2 making a payment of the purchase price after December 31,

3 2013, shall withhold from the amount of each payment at a

4 rate equal to the percentage tax rate for individuals

5 provided in subsection (b) of Section 201.

6 (3) Any person making a payment after December 31, 2017

7 to a resident or nonresident of winnings from pari-mutuel

8 wagering conducted at a wagering facility licensed under

9 the Illinois Horse Racing Act of 1975 or from gambling

10 games conducted on a riverboat or in a casino or electronic

11 gaming facility licensed under the Illinois Gambling Act

12 must withhold Illinois income tax from such payment at a

13 rate equal to the percentage tax rate for individuals

14 provided in subsection (b) of Section 201, provided that

15 the person making the payment is required to withhold under

16 Section 3402(q) of the Internal Revenue Code.

17 (b) Credit for taxes withheld. Any amount withheld under

18 Subsection (a) shall be a credit against the Illinois income

19 tax liability of the person to whom the payment of winnings was

20 made for the taxable year in which that person incurred an

21 Illinois income tax liability with respect to those winnings.

22 (Source: P.A. 98-496, eff. 1-1-14.)

23 Section 90-23. The Property Tax Code is amended by adding

24 Section 15-144 as follows:

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1 (35 ILCS 200/15-144 new)

2 Sec. 15-144. Chicago Casino Development Authority. All

3 property owned by the Chicago Casino Development Authority is

4 exempt. Any property owned by the Chicago Casino Development

5 Authority and leased to any other entity is not exempt.

6 Section 90-24. The Illinois Municipal Code is amended by

7 adding Section 8-10-2.6 as follows:

8 (65 ILCS 5/8-10-2.6 new)

9 Sec. 8-10-2.6. Chicago Casino Development Authority.

10 Except as otherwise provided in the Chicago Casino Development

11 Authority Act, this Division 10 applies to purchase orders and

12 contracts relating to the Chicago Casino Development

13 Authority.

14 Section 90-25. The Joliet Regional Port District Act is

15 amended 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

18 any other provision of this Act, the District may not regulate

19 the operation, conduct, or navigation of any riverboat gambling

20 casino licensed under the Illinois ~~Riverboat~~Gambling Act, and

21 the District may not license, tax, or otherwise levy any

22 assessment of any kind on any riverboat gambling casino

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1 licensed under the Illinois ~~Riverboat~~Gambling Act. The General

2 Assembly declares that the powers to regulate the operation,

3 conduct, and navigation of riverboat gambling casinos and to

4 license, tax, and levy assessments upon riverboat gambling

5 casinos are exclusive powers of the State of Illinois and the

6 Illinois Gaming Board as provided in theIllinois ~~Riverboat~~

7 Gambling Act.

8 (Source: P.A. 87-1175.)

9 Section 90-30. The Consumer Installment Loan Act is amended

10 by 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

14 may maintain a limited purpose branch for the sole purpose of

15 making loans as permitted by this Act. A limited purpose branch

16 may include an automatic loan machine. No other activity shall

17 be conducted at the site, including but not limited to,

18 accepting payments, servicing the accounts, or collections.

19 (b) The licensee must submit an application for a limited

20 purpose branch to the Director on forms prescribed by the

21 Director with an application fee of $300. The approval for the

22 limited purpose branch must be renewed concurrently with the

23 renewal 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

2 purpose branch's transactions shall be maintained at the

3 licensee's licensed location. The licensee shall notify the

4 Director of the licensed location at which the books, accounts,

5 records, and files shall be maintained.

6 (d) The licensee shall prominently display at the limited

7 purpose branch the address and telephone number of the

8 licensee's licensed location.

9 (e) No other business shall be conducted at the site of the

10 limited purpose branch unless authorized by the Director.

11 (f) The Director shall make and enforce reasonable rules

12 for the conduct of a limited purpose branch.

13 (g) A limited purpose branch may not be located within

14 1,000 feet of a facility operated by an inter-track wagering

15 licensee or an organization licensee subject to the Illinois

16 Horse Racing Act of 1975, on a riverboator in a casino subject

17 to theIllinois ~~Riverboat~~ Gambling Act, or within 1,000 feet of

18 the location at which the riverboat docksor within 1,000 feet

19 of a casino.

20 (Source: P.A. 90-437, eff. 1-1-98.)

21 Section 90-35. The Illinois Horse Racing Act of 1975 is

22 amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,

23 20, 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, and

24 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,

25 34.3, 39.2, and 56 as follows:

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1 (230 ILCS 5/1.2)

2 Sec. 1.2. Legislative intent. This Act is intended to

3 benefit the people of the State of Illinois byencouraging the

4 breeding and production of race horses,assisting economic

5 development and promoting Illinois tourism. The General

6 Assembly finds and declares it to be the public policy of the

7 State of Illinois to:

8 (a) support and enhance Illinois' horse racing industry,

9 which is a significant component within the agribusiness

10 industry;

11 (b) ensure that Illinois' horse racing industry remains

12 competitive with neighboring states;

13 (c) stimulate growth within Illinois' horse racing

14 industry, thereby encouraging new investment and development

15 to produce additional tax revenues and to create additional

16 jobs;

17 (d) promote the further growth of tourism;

18 (e) encourage the breeding of thoroughbred and

19 standardbred horses in this State; and

20 (f) ensure that public confidence and trust in the

21 credibility and integrity of racing operations and the

22 regulatory 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)

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1 Sec. 3.11. "Organization Licensee" means any person

2 receiving an organization license from the Board to conduct a

3 race meeting or meetings. With respect only to electronic

4 gaming, "organization licensee" includes the authorization for

5 an electronic gaming license under subsection (a) of Section 56

6 of 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

10 system of wagering" means a form of wagering on the outcome of

11 horse races in which wagers are made in various denominations

12 on a horse or horses and all wagers for each race are pooled

13 and held by a licensee for distribution in a manner approved by

14 the Board. "Pari-mutuel system of wagering" shall not include

15 wagering on historic races. Wagers may be placed via any method

16 or 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

20 receipts" means the gross receipts less winnings paid to

21 wagerers.

22 (230 ILCS 5/3.32 new)

23 Sec. 3.32. Gross receipts. "Gross receipts" means the total

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1 amount of money exchanged for the purchase of chips, tokens, or

2 electronic cards by riverboat or casino patrons or electronic

3 gaming patrons.

4 (230 ILCS 5/3.33 new)

5 Sec. 3.33. Electronic gaming. "Electronic gaming" means

6 slot machine gambling, video game of chance gambling, or

7 gambling with electronic gambling games as defined in the

8 Illinois Gambling Act or defined by the Illinois Gaming Board

9 that is conducted at a race track pursuant to an electronic

10 gaming license.

11 (230 ILCS 5/3.35 new)

12 Sec. 3.35. Electronic gaming license. "Electronic gaming

13 license" means a license issued by the Illinois Gaming Board

14 under Section 7.7 of the Illinois Gambling Act authorizing

15 electronic gaming at an electronic gaming facility.

16 (230 ILCS 5/3.36 new)

17 Sec. 3.36. Electronic gaming facility. "Electronic gaming

18 facility" means that portion of an organization licensee's race

19 track 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

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1 continue to be a member of the Board if the person or any

2 member of their immediate family is a member of the Board of

3 Directors, employee, or financially interested in any of the

4 following: (i) any licensee or other person who has applied for

5 racing dates to the Board, or the operations thereof including,

6 but not limited to, concessions, data processing, track

7 maintenance, track security, and pari-mutuel operations,

8 located, scheduled or doing business within the State of

9 Illinois, (ii) any race horse competing at a meeting under the

10 Board's jurisdiction, or (iii) any licensee under the Illinois

11 Gambling Act. ~~No person shall be appointed a member of the~~

12 ~~Board or continue to be a member of the Board who is (or any~~

13 ~~member of whose family is) a member of the Board of Directors~~

14 ~~of, or who is a person financially interested in, any licensee~~

15 ~~or other person who has applied for racing dates to the Board,~~

16 ~~or the operations thereof including, but not limited to,~~

17 ~~concessions, data processing, track maintenance, track~~

18 ~~security and pari-mutuel operations, located, scheduled or~~

19 ~~doing business within the State of Illinois, or in any race~~

20 ~~horse competing at a meeting under the Board's jurisdiction. No~~

21 ~~Board member shall hold any other public office for which he~~

22 ~~shall receive compensation other than necessary travel or other~~

23 ~~incidental expenses.~~

24 (b) No person shall be a member of the Board who is not of

25 good moral character or who has been convicted of, or is under

26 indictment for, a felony under the laws of Illinois or any

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1 other state, or the United States.

2 (c) No member of the Board or employee shall engage in any

3 political activity.

4 For the purposes of this subsection (c):

5 "Political" means any activity in support of or in

6 connection with any campaign for State or local elective office

7 or any political organization, but does not include activities

8 (i) relating to the support or opposition of any executive,

9 legislative, or administrative action (as those terms are

10 defined in Section 2 of the Lobbyist Registration Act), (ii)

11 relating to collective bargaining, or (iii) that are otherwise

12 in furtherance of the person's official State duties or

13 governmental and public service functions.

14 "Political organization" means a party, committee,

15 association, fund, or other organization (whether or not

16 incorporated) that is required to file a statement of

17 organization with the State Board of Elections or county clerk

18 under Section 9-3 of the Election Code, but only with regard to

19 those activities that require filing with the State Board of

20 Elections or county clerk.

21 (d) Board members and employees may not engage in

22 communications or any activity that may cause or have the

23 appearance of causing a conflict of interest. A conflict of

24 interest exists if a situation influences or creates the

25 appearance that it may influence judgment or performance of

26 regulatory duties and responsibilities. This prohibition shall

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1 extend to any act identified by Board action that, in the

2 judgment of the Board, could represent the potential for or the

3 appearance of a conflict of interest.

4 (e) Board members and employees may not accept any gift,

5 gratuity, service, compensation, travel, lodging, or thing of

6 value, with the exception of unsolicited items of an incidental

7 nature, from any person, corporation, limited liability

8 company, or entity doing business with the Board.

9 (f) A Board member or employee shall not use or attempt to

10 use his or her official position to secure, or attempt to

11 secure, any privilege, advantage, favor, or influence for

12 himself or herself or others. No Board member or employee,

13 within a period of one year immediately preceding nomination by

14 the Governor or employment, shall have been employed or

15 received compensation or fees for services from a person or

16 entity, or its parent or affiliate, that has engaged in

17 business with the Board, a licensee or a licensee under the

18 Illinois Gambling Act. In addition, all Board members and

19 employees are subject to the restrictions set forth in Section

20 5-45 of the State Officials and Employees Ethics Act.

21 (Source: P.A. 89-16, eff. 5-30-95.)

22 (230 ILCS 5/9) (from Ch. 8, par. 37-9)

23 Sec. 9. The Board shall have all powers necessary and

24 proper to fully and effectively execute the provisions of this

25 Act, including, but not limited to, the following:

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1 (a) The Board is vested with jurisdiction and supervision

2 over all race meetings in this State, over all licensees doing

3 business in this State, over all occupation licensees, and over

4 all persons on the facilities of any licensee. Such

5 jurisdiction shall include the power to issue licenses to the

6 Illinois Department of Agriculture authorizing the pari-mutuel

7 system of wagering on harness and Quarter Horse races held (1)

8 at the Illinois State Fair in Sangamon County, and (2) at the

9 DuQuoin State Fair in Perry County. The jurisdiction of the

10 Board shall also include the power to issue licenses to county

11 fairs which are eligible to receive funds pursuant to the

12 Agricultural Fair Act, as now or hereafter amended, or their

13 agents, authorizing the pari-mutuel system of wagering on horse

14 races conducted at the county fairs receiving such licenses.

15 Such licenses shall be governed by subsection (n) of this

16 Section.

17 Upon application, the Board shall issue a license to the

18 Illinois Department of Agriculture to conduct harness and

19 Quarter Horse races at the Illinois State Fair and at the

20 DuQuoin State Fairgrounds during the scheduled dates of each

21 fair. The Board shall not require and the Department of

22 Agriculture shall be exempt from the requirements of Sections

23 15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),

24 (e-10), (f), (g), and (h) of Section 20, and Sections 21, 24

25 and 25. The Board and the Department of Agriculture may extend

26 any or all of these exemptions to any contractor or agent

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1 engaged by the Department of Agriculture to conduct its race

2 meetings when the Board determines that this would best serve

3 the public interest and the interest of horse racing.

4 Notwithstanding any provision of law to the contrary, it

5 shall be lawful for any licensee to operate pari-mutuel

6 wagering or contract with the Department of Agriculture to

7 operate pari-mutuel wagering at the DuQuoin State Fairgrounds

8 or for the Department to enter into contracts with a licensee,

9 employ its owners, employees or agents and employ such other

10 occupation licensees as the Department deems necessary in

11 connection with race meetings and wagerings.

12 (b) The Board is vested with the full power to promulgate

13 reasonable rules and regulations for the purpose of

14 administering the provisions of this Act and to prescribe

15 reasonable rules, regulations and conditions under which all

16 horse race meetings or wagering in the State shall be

17 conducted. Such reasonable rules and regulations are to provide

18 for the prevention of practices detrimental to the public

19 interest and to promote the best interests of horse racing and

20 to impose penalties for violations thereof.

21 (c) The Board, and any person or persons to whom it

22 delegates this power, is vested with the power to enter the

23 facilities and other places of business of any licensee to

24 determine whether there has been compliance with the provisions

25 of this Act and its rules and regulations.

26 (d) The Board, and any person or persons to whom it

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1 delegates this power, is vested with the authority to

2 investigate alleged violations of the provisions of this Act,

3 its reasonable rules and regulations, orders and final

4 decisions; the Board shall take appropriate disciplinary

5 action against any licensee or occupation licensee for

6 violation thereof or institute appropriate legal action for the

7 enforcement thereof.

8 (e) The Board, and any person or persons to whom it

9 delegates this power, may eject or exclude from any race

10 meeting or the facilities of any licensee, or any part thereof,

11 any occupation licensee or any other individual whose conduct

12 or reputation is such that his presence on those facilities

13 may, in the opinion of the Board, call into question the

14 honesty and integrity of horse racing or wagering or interfere

15 with the orderly conduct of horse racing or wagering; provided,

16 however, that no person shall be excluded or ejected from the

17 facilities of any licensee solely on the grounds of race,

18 color, creed, national origin, ancestry, or sex. The power to

19 eject or exclude an occupation licensee or other individual may

20 be exercised for just cause by the licensee or the Board,

21 subject to subsequent hearing by the Board as to the propriety

22 of said exclusion.

23 (f) The Board is vested with the power to acquire,

24 establish, maintain and operate (or provide by contract to

25 maintain and operate) testing laboratories and related

26 facilities, for the purpose of conducting saliva, blood, urine

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1 and other tests on the horses run or to be run in any horse race

2 meeting, including races run at county fairs, and to purchase

3 all equipment and supplies deemed necessary or desirable in

4 connection with any such testing laboratories and related

5 facilities and all such tests.

6 (g) The Board may require that the records, including

7 financial or other statements of any licensee or any person

8 affiliated with the licensee who is involved directly or

9 indirectly in the activities of any licensee as regulated under

10 this Act to the extent that those financial or other statements

11 relate to such activities be kept in such manner as prescribed

12 by the Board, and that Board employees shall have access to

13 those records during reasonable business hours. Within 120 days

14 of the end of its fiscal year, each licensee shall transmit to

15 the Board an audit of the financial transactions and condition

16 of the licensee's total operations. All audits shall be

17 conducted by certified public accountants. Each certified

18 public accountant must be registered in the State of Illinois

19 under the Illinois Public Accounting Act. The compensation for

20 each certified public accountant shall be paid directly by the

21 licensee to the certified public accountant. A licensee shall

22 also submit any other financial or related information the

23 Board deems necessary to effectively administer this Act and

24 all rules, regulations, and final decisions promulgated under

25 this Act.

26 (h) The Board shall name and appoint in the manner provided

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1 by the rules and regulations of the Board: an Executive

2 Director; a State director of mutuels; State veterinarians and

3 representatives to take saliva, blood, urine and other tests on

4 horses; licensing personnel; revenue inspectors; and State

5 seasonal employees (excluding admission ticket sellers and

6 mutuel clerks). All of those named and appointed as provided in

7 this subsection shall serve during the pleasure of the Board;

8 their compensation shall be determined by the Board and be paid

9 in the same manner as other employees of the Board under this

10 Act.

11 (i) The Board shall require that there shall be 3 stewards

12 at each horse race meeting, at least 2 of whom shall be named

13 and appointed by the Board. Stewards appointed or approved by

14 the Board, while performing duties required by this Act or by

15 the Board, shall be entitled to the same rights and immunities

16 as granted to Board members and Board employees in Section 10

17 of this Act.

18 (j) The Board may discharge any Board employee who fails or

19 refuses for any reason to comply with the rules and regulations

20 of the Board, or who, in the opinion of the Board, is guilty of

21 fraud, dishonesty or who is proven to be incompetent. The Board

22 shall have no right or power to determine who shall be

23 officers, directors or employees of any licensee, or their

24 salaries except the Board may, by rule, require that all or any

25 officials or employees in charge of or whose duties relate to

26 the actual running of races be approved by the Board.

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1 (k) The Board is vested with the power to appoint delegates

2 to execute any of the powers granted to it under this Section

3 for the purpose of administering this Act and any rules or

4 regulations promulgated in accordance with this Act.

5 (l) The Board is vested with the power to impose civil

6 penalties of up to $5,000 against an individual and up to

7 $10,000 against a licensee for each violation of any provision

8 of this Act, any rules adopted by the Board, any order of the

9 Board or any other action which, in the Board's discretion, is

10 a detriment or impediment to horse racing or wagering.

11 Beginning on the date when any organization licensee begins

12 conducting electronic gaming pursuant to an electronic gaming

13 license issued under the Illinois Gambling Act, the power

14 granted to the Board pursuant to this subsection (l) shall

15 authorize the Board to impose penalties of up to $10,000

16 against an individual and up to $25,000 against a licensee. All

17 such civil penalties shall be deposited into the Horse Racing

18 Fund.

19 (m) The Board is vested with the power to prescribe a form

20 to be used by licensees as an application for employment for

21 employees of each licensee.

22 (n) The Board shall have the power to issue a license to

23 any county fair, or its agent, authorizing the conduct of the

24 pari-mutuel system of wagering. The Board is vested with the

25 full power to promulgate reasonable rules, regulations and

26 conditions under which all horse race meetings licensed

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1 pursuant to this subsection shall be held and conducted,

2 including rules, regulations and conditions for the conduct of

3 the pari-mutuel system of wagering. The rules, regulations and

4 conditions shall provide for the prevention of practices

5 detrimental to the public interest and for the best interests

6 of horse racing, and shall prescribe penalties for violations

7 thereof. Any authority granted the Board under this Act shall

8 extend to its jurisdiction and supervision over county fairs,

9 or their agents, licensed pursuant to this subsection. However,

10 the Board may waive any provision of this Act or its rules or

11 regulations which would otherwise apply to such county fairs or

12 their agents.

13 (o) Whenever the Board is authorized or required by law to

14 consider some aspect of criminal history record information for

15 the purpose of carrying out its statutory powers and

16 responsibilities, then, upon request and payment of fees in

17 conformance with the requirements of Section 2605-400 of the

18 Department of State Police Law (20 ILCS 2605/2605-400), the

19 Department of State Police is authorized to furnish, pursuant

20 to positive identification, such information contained in

21 State files as is necessary to fulfill the request.

22 (p) To insure the convenience, comfort, and wagering

23 accessibility of race track patrons, to provide for the

24 maximization of State revenue, and to generate increases in

25 purse allotments to the horsemen, the Board shall require any

26 licensee to staff the pari-mutuel department with adequate

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1 personnel.

2 (Source: P.A. 97-1060, eff. 8-24-12.)

3 (230 ILCS 5/15) (from Ch. 8, par. 37-15)

4 Sec. 15. (a) The Board shall, in its discretion, issue

5 occupation licenses to horse owners, trainers, harness

6 drivers, jockeys, agents, apprentices, grooms, stable foremen,

7 exercise persons, veterinarians, valets, blacksmiths,

8 concessionaires and others designated by the Board whose work,

9 in whole or in part, is conducted upon facilities within the

10 State. Such occupation licenses will be obtained prior to the

11 persons engaging in their vocation upon such facilities. The

12 Board shall not license pari-mutuel clerks, parking

13 attendants, security guards and employees of concessionaires.

14 No occupation license shall be required of any person who works

15 at facilities within this State as a pari-mutuel clerk, parking

16 attendant, security guard or as an employee of a

17 concessionaire. Concessionaires of the Illinois State Fair and

18 DuQuoin State Fair and employees of the Illinois Department of

19 Agriculture shall not be required to obtain an occupation

20 license by the Board.

21 (b) Each application for an occupation license shall be on

22 forms prescribed by the Board. Such license, when issued, shall

23 be for the period ending December 31 of each year, except that

24 the Board in its discretion may grant 3-year licenses. The

25 application shall be accompanied by a fee of not more than $25

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1 per year or, in the case of 3-year occupation license

2 applications, a fee of not more than $60. Each applicant shall

3 set forth in the application his full name and address, and if

4 he had been issued prior occupation licenses or has been

5 licensed in any other state under any other name, such name,

6 his age, whether or not a permit or license issued to him in

7 any other state has been suspended or revoked and if so whether

8 such suspension or revocation is in effect at the time of the

9 application, and such other information as the Board may

10 require. Fees for registration of stable names shall not exceed

11 $50.00. Beginning on the date when any organization licensee

12 begins conducting electronic gaming pursuant to an electronic

13 gambling license issued under the Illinois Gambling Act, the

14 fee for registration of stable names shall not exceed $150, and

15 the application fee for an occupation license shall not exceed

16 $75, per year or, in the case of a 3-year occupation license

17 application, the fee shall not exceed $180.

18 (c) The Board may in its discretion refuse an occupation

19 license to any person:

20 (1) who has been convicted of a crime;

21 (2) who is unqualified to perform the duties required

22 of such applicant;

23 (3) who fails to disclose or states falsely any

24 information called for in the application;

25 (4) who has been found guilty of a violation of this

26 Act or of the rules and regulations of the Board; or

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1 (5) whose license or permit has been suspended, revoked

2 or denied for just cause in any other state.

3 (d) The Board may suspend or revoke any occupation license:

4 (1) for violation of any of the provisions of this Act;

5 or

6 (2) for violation of any of the rules or regulations of

7 the Board; or

8 (3) for any cause which, if known to the Board, would

9 have justified the Board in refusing to issue such

10 occupation license; or

11 (4) for any other just cause.

12 (e) Each applicant shall submit his or her fingerprints

13 to the Department of State Police in the form and manner

14 prescribed by the Department of State Police. These

15 fingerprints shall be checked against the fingerprint records

16 now and hereafter filed in the Department of State Police and

17 Federal Bureau of Investigation criminal history records

18 databases. The Department of State Police shall charge a fee

19 for conducting the criminal history records check, which shall

20 be deposited in the State Police Services Fund and shall not

21 exceed the actual cost of the records check. The Department of

22 State Police shall furnish, pursuant to positive

23 identification, records of conviction to the Board. Each

24 applicant for licensure shall submit with his occupation

25 license application, on forms provided by the Board, 2 sets of

26 his fingerprints. All such applicants shall appear in person at

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1 the location designated by the Board for the purpose of

2 submitting such sets of fingerprints; however, with the prior

3 approval of a State steward, an applicant may have such sets of

4 fingerprints taken by an official law enforcement agency and

5 submitted to the Board.

6 (f) The Board may, in its discretion, issue an occupation

7 license without submission of fingerprints if an applicant has

8 been duly licensed in another recognized racing jurisdiction

9 after submitting fingerprints that were subjected to a Federal

10 Bureau of Investigation criminal history background check in

11 that jurisdiction.

12 (g) Beginning on the date when any organization licensee

13 begins conducting electronic gambling pursuant to an

14 electronic gaming license issued under the Illinois Gambling

15 Act, the Board may charge each applicant a reasonable

16 non-refundable fee to defray the costs associated with the

17 background investigation conducted by the Board. This fee shall

18 be exclusive of any other fee or fees charged in connection

19 with an application for and, if applicable, the issuance of, an

20 electronic gaming license. If the costs of the investigation

21 exceed the amount of the fee charged, the Board shall

22 immediately notify the applicant of the additional amount owed,

23 payment of which must be submitted to the Board within 7 days

24 after such notification. All information, records, interviews,

25 reports, statements, memoranda, or other data supplied to or

26 used by the Board in the course of its review or investigation

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1 of an applicant for a license or renewal under this Act shall

2 be privileged, strictly confidential, and shall be used only

3 for the purpose of evaluating an applicant for a license or a

4 renewal. Such information, records, interviews, reports,

5 statements, memoranda, or other data shall not be admissible as

6 evidence, nor discoverable, in any action of any kind in any

7 court or before any tribunal, board, agency, or person, except

8 for any action deemed necessary by the Board.

9 (Source: P.A. 93-418, eff. 1-1-04.)

10 (230 ILCS 5/18) (from Ch. 8, par. 37-18)

11 Sec. 18. (a) Together with its application, each applicant

12 for racing dates shall deliver to the Board a certified check

13 or bank draft payable to the order of the Board for $1,000. In

14 the event the applicant applies for racing dates in 2 or 3

15 successive calendar years as provided in subsection (b) of

16 Section 21, the fee shall be $2,000. Filing fees shall not be

17 refunded in the event the application is denied.Beginning on

18 the date when any organization licensee begins conducting

19 electronic gaming pursuant to an electronic gaming license

20 issued under the Illinois Gambling Act, the application fee for

21 racing dates imposed by this subsection (a) shall be $10,000

22 and the application fee for racing dates in 2 or 3 successive

23 calendar years as provided in subsection (b) of Section 21

24 shall be $20,000. All filing fees shall be deposited into the

25 Horse Racing Fund.

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1 (b) In addition to the filing fee imposed by subsection (a)

2 ~~of $1000~~and the fees provided in subsection (j) of Section 20,

3 each organization licensee shall pay a license fee of $100 for

4 each racing program on which its daily pari-mutuel handle is

5 $400,000 or more but less than $700,000, and a license fee of

6 $200 for each racing program on which its daily pari-mutuel

7 handle is $700,000 or more. The additional fees required to be

8 paid under this Section by this amendatory Act of 1982 shall be

9 remitted by the organization licensee to the Illinois Racing

10 Board with each day's graduated privilege tax or pari-mutuel

11 tax and breakage as provided under Section 27.Beginning on the

12 date when any organization licensee begins conducting

13 electronic gaming pursuant to an electronic gaming license

14 issued under the Illinois Gambling Act, the license fee imposed

15 by this subsection (b) shall be $200 for each racing program on

16 which the organization licensee's daily pari-mutuel handle is

17 $100,000 or more, but less than $400,000, and the license fee

18 imposed by this subsection (b) shall be $400 for each racing

19 program on which the organization licensee's daily pari-mutuel

20 handle is $400,000 or more.

21 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois

22 Municipal Code," approved May 29, 1961, as now or hereafter

23 amended, shall not apply to any license under this Act.

24 (Source: P.A. 97-1060, eff. 8-24-12.)

25 (230 ILCS 5/19) (from Ch. 8, par. 37-19)

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1 Sec. 19. (a) No organization license may be granted to

2 conduct a horse race meeting:

3 (1) except as provided in subsection (c) of Section 21

4 of this Act, to any person at any place within 35 miles of

5 any other place licensed by the Board to hold a race

6 meeting on the same date during the same hours, the mileage

7 measurement used in this subsection (a) shall be certified

8 to the Board by the Bureau of Systems and Services in the

9 Illinois Department of Transportation as the most commonly

10 used public way of vehicular travel;

11 (2) to any person in default in the payment of any

12 obligation or debt due the State under this Act, provided

13 no applicant shall be deemed in default in the payment of

14 any obligation or debt due to the State under this Act as

15 long as there is pending a hearing of any kind relevant to

16 such matter;

17 (3) to any person who has been convicted of the

18 violation of any law of the United States or any State law

19 which provided as all or part of its penalty imprisonment

20 in any penal institution; to any person against whom there

21 is pending a Federal or State criminal charge; to any

22 person who is or has been connected with or engaged in the

23 operation of any illegal business; to any person who does

24 not enjoy a general reputation in his community of being an

25 honest, upright, law-abiding person; provided that none of

26 the matters set forth in this subparagraph (3) shall make

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1 any person ineligible to be granted an organization license

2 if the Board determines, based on circumstances of any such

3 case, that the granting of a license would not be

4 detrimental to the interests of horse racing and of the

5 public;

6 (4) to any person who does not at the time of

7 application for the organization license own or have a

8 contract or lease for the possession of a finished race

9 track suitable for the type of racing intended to be held

10 by the applicant and for the accommodation of the public.

11 (b) (Blank) ~~Horse racing on Sunday shall be prohibited~~

12 ~~unless authorized by ordinance or referendum of the~~

13 ~~municipality in which a race track or any of its appurtenances~~

14 ~~or facilities are located, or utilized~~.

15 (c) If any person is ineligible to receive an organization

16 license because of any of the matters set forth in subsection

17 (a) (2) or subsection (a) (3) of this Section, any other or

18 separate person that either (i) controls, directly or

19 indirectly, such ineligible person or (ii) is controlled,

20 directly or indirectly, by such ineligible person or by a

21 person which controls, directly or indirectly, such ineligible

22 person shall also be ineligible.

23 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)

24 (230 ILCS 5/20) (from Ch. 8, par. 37-20)

25 Sec. 20. (a) Any person desiring to conduct a horse race

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1 meeting may apply to the Board for an organization license. The

2 application shall be made on a form prescribed and furnished by

3 the Board. The application shall specify:

4 (1) the dates on which it intends to conduct the horse

5 race meeting, which dates shall be provided under Section

6 21;

7 (2) the hours of each racing day between which it

8 intends to hold or conduct horse racing at such meeting;

9 (3) the location where it proposes to conduct the

10 meeting; and

11 (4) any other information the Board may reasonably

12 require.

13 (b) A separate application for an organization license

14 shall be filed for each horse race meeting which such person

15 proposes to hold. Any such application, if made by an

16 individual, or by any individual as trustee, shall be signed

17 and verified under oath by such individual. If the application

18 ismade by individuals, then it shall be signed and verified

19 under oath by at least 2 of the individuals; if the application

20 is made by ~~or~~ a partnership, ~~it shall be signed and verified~~

21 ~~under oath by at least 2 of such individuals or members of such~~

22 ~~partnership as the case may be. If made by~~ an association, a

23 corporation, acorporate trustee, a limited liability company,

24 or any other entity, it shall be signed by an authorized

25 officer, a partner, a member, or a manager, as the case may be,

26 of the entity ~~the president and attested by the secretary or~~

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1 ~~assistant secretary under the seal of such association, trust~~

2 ~~or corporation if it has a seal, and shall also be verified~~

3 ~~under oath by one of the signing officers~~.

4 (c) The application shall specify:

5 (1)the name of the persons, association, trust, or

6 corporation making such application; ~~and~~

7 (2) the principal~~post office~~ address of the applicant;

8 (3)if the applicant is a trustee, the names and

9 addresses of the beneficiaries; if the applicant is a

10 corporation, the names and~~post office~~ addresses of all

11 officers, stockholders and directors; or if such

12 stockholders hold stock as a nominee or fiduciary, the

13 names and ~~post office~~ addresses of the parties ~~these~~

14 ~~persons, partnerships, corporations, or trusts~~who are the

15 beneficial owners thereof or who are beneficially

16 interested therein;~~and~~ if the applicant is a partnership,

17 the names and ~~post office~~addresses of all partners,

18 general or limited; if the applicant is a limited liability

19 company, the names and addresses of the manager and

20 members; and if the applicant is any other entity, the

21 names and addresses of all officers or other authorized

22 persons of the entity ~~corporation, the name of the state of~~

23 ~~its incorporation shall be specified~~.

24 (d) The applicant shall execute and file with the Board a

25 good faith affirmative action plan to recruit, train, and

26 upgrade minorities in all classifications within the

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1 association.

2 (e) With such application there shall be delivered to the

3 Board a certified check or bank draft payable to the order of

4 the Board for an amount equal to $1,000. All applications for

5 the issuance of an organization license shall be filed with the

6 Board before August 1 of the year prior to the year for which

7 application is made and shall be acted upon by the Board at a

8 meeting to be held on such date as shall be fixed by the Board

9 during the last 15 days of September of such prior year. At

10 such meeting, the Board shall announce the award of the racing

11 meets, live racing schedule, and designation of host track to

12 the applicants and its approval or disapproval of each

13 application. No announcement shall be considered binding until

14 a formal order is executed by the Board, which shall be

15 executed no later than October 15 of that prior year. Absent

16 the agreement of the affected organization licensees, the Board

17 shall not grant overlapping race meetings to 2 or more tracks

18 that are within 100 miles of each other to conduct the

19 thoroughbred racing.

20 (e-1) In awarding standardbred racing dates for calendar

21 year 2018 and thereafter, the Board shall award at least 310

22 racing days, and each organization licensee shall average at

23 least 12 races for each racing day awarded. The Board shall

24 have the discretion to allocate those racing days among

25 organization licensees requesting standardbred racing dates.

26 Once awarded by the Board, organization licensees awarded

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1 standardbred racing dates shall run at least 3,500 races in

2 total during that calendar year. Standardbred racing conducted

3 in Sangamon County shall not be considered races under this

4 subsection (e-1).

5 (e-2) In awarding racing dates for calendar year 2018 and

6 thereafter, the Board shall award thoroughbred racing days to

7 Cook County organization licensees commensurate with these

8 organization licensees' requirement that they shall run at

9 least 1,950 thoroughbred races in the aggregate, so long as 2

10 organization licensees are conducting electronic gaming

11 operations. Additionally, if the organization licensees that

12 run thoroughbred races in Cook County are conducting electronic

13 gaming operations, the Board shall increase the number of

14 thoroughbred races to be run in Cook County in the aggregate to

15 at least the following:

16 (i) 2,050 races in any year following the most recent

17 preceding complete calendar year when the combined

18 adjusted gross receipts of the electronic gaming licensees

19 operating at Cook County race tracks total in excess of

20 $200,000,000, but do not exceed $250,000,000;

21 (ii) 2,125 races in any year following the most recent

22 preceding complete calendar year when the combined

23 adjusted gross receipts of the electronic gaming licensees

24 operating at Cook County race tracks total in excess of

25 $250,000,000, but do not exceed $300,000,000;

26 (iii) 2,200 races in any year following the most recent

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1 preceding complete calendar year when the combined

2 adjusted gross receipts of the electronic gaming licensees

3 operating at Cook County race tracks total in excess of

4 $300,000,000, but do not exceed $350,000,000;

5 (iv) 2,300 races in any year following the most recent

6 preceding complete calendar year when the combined

7 adjusted gross receipts of the electronic gaming licensees

8 operating at Cook County race tracks total in excess of

9 $350,000,000, but do not exceed $400,000,000;

10 (v) 2,375 races in any year following the most recent

11 preceding complete calendar year when the combined

12 adjusted gross receipts of the electronic gaming licensees

13 operating at Cook County race tracks total in excess of

14 $400,000,000, but do not exceed $450,000,000;

15 (vi) 2,450 races in any year following the most recent

16 preceding complete calendar year when the combined

17 adjusted gross receipts of the electronic gaming licensees

18 operating at Cook County race tracks total in excess of

19 $450,000,000, but do not exceed $500,000,000;

20 (vii) 2,550 races in any year following the most recent

21 preceding complete calendar year when the combined

22 adjusted gross receipts of the electronic gaming licensees

23 operating at Cook County race tracks exceeds $500,000,000.

24 In awarding racing dates under this subsection (e-2), the

25 Board shall have the discretion to allocate those thoroughbred

26 racing dates among these Cook County organization licensees.

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1 (e-3) In awarding racing dates for calendar year 2018 and

2 thereafter in connection with a race track in Madison County,

3 the Board shall award racing dates and such organization

4 licensee shall run at least 700 thoroughbred races at the race

5 track in Madison County each year.

6 Notwithstanding Section 7.7 of the Illinois Gambling Act or

7 any provision of this Act other than subsection (e-4.5), for

8 each calendar year for which an electronic gaming licensee

9 located in Madison County requests racing dates resulting in

10 less than 700 live thoroughbred races at its race track

11 facility, the electronic gaming licensee may not conduct

12 electronic gaming for the calendar year of such requested live

13 races.

14 (e-4) Notwithstanding the provisions of Section 7.7 of the

15 Illinois Gambling Act or any provision of this Act other than

16 subsections (e-3) and (e-4.5), for each calendar year for which

17 an electronic gaming licensee requests racing dates for a

18 specific horse breed which results in a number of live races

19 for that specific breed under its organization license that is

20 less than the total number of live races for that specific

21 breed which it conducted in 2011 for standardbred racing and in

22 2009 for thoroughbred racing at its race track facility, the

23 electronic gaming licensee may not conduct electronic gaming

24 for the calendar year of such requested live races.

25 (e-4.5) The Board shall ensure that each organization

26 licensee shall individually run a sufficient number of races

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1 per year to qualify for an electronic gaming license under this

2 Act. The General Assembly finds that the minimum live racing

3 guarantees contained in subsections (e-1), (e-2), and (e-3) are

4 in the best interest of the sport of horse racing, and that

5 such guarantees may only be reduced in the limited

6 circumstances described in this subsection. The Board may

7 decrease the number of racing days without affecting an

8 organization licensee's ability to conduct electronic gaming

9 only if the Board determines, after notice and hearing, that:

10 (i) a decrease is necessary to maintain a sufficient

11 number of betting interests per race to ensure the

12 integrity of racing;

13 (ii) there are unsafe track conditions due to weather

14 or acts of God;

15 (iii) there is an agreement between an organization

16 licensee and the breed association that is applicable to

17 the involved live racing guarantee, such association

18 representing either the largest number of thoroughbred

19 owners and trainers or the largest number of standardbred

20 owners, trainers and drivers who race horses at the

21 involved organization licensee's racing meeting, so long

22 as the agreement does not compromise the integrity of the

23 sport of horse racing; or

24 (iv) the horse population or purse levels are

25 insufficient to provide the number of racing opportunities

26 otherwise required in this Act.

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1 In decreasing the number of racing dates in accordance with

2 this subsection, the Board shall hold a hearing and shall

3 provide the public and all interested parties notice and an

4 opportunity to be heard. The Board shall accept testimony from

5 all interested parties, including any association representing

6 owners, trainers, jockeys, or drivers who will be affected by

7 the decrease in racing dates. The Board shall provide a written

8 explanation of the reasons for the decrease and the Board's

9 findings. The written explanation shall include a listing and

10 content of all communication between any party and any Illinois

11 Racing Board member or staff that does not take place at a

12 public meeting of the Board.

13 (e-5) In reviewing an application for the purpose of

14 granting an organization license consistent with the best

15 interests of the public and the sport of horse racing, the

16 Board shall consider:

17 (1) the character, reputation, experience, and

18 financial integrity of the applicant and of any other

19 separate person that either:

20 (i) controls the applicant, directly or

21 indirectly, or

22 (ii) is controlled, directly or indirectly, by

23 that applicant or by a person who controls, directly or

24 indirectly, that applicant;

25 (2) the applicant's facilities or proposed facilities

26 for conducting horse racing;

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1 (3) the total revenue without regard to Section 32.1 to

2 be derived by the State and horsemen from the applicant's

3 conducting a race meeting;

4 (4) the applicant's good faith affirmative action plan

5 to recruit, train, and upgrade minorities in all employment

6 classifications;

7 (5) the applicant's financial ability to purchase and

8 maintain adequate liability and casualty insurance;

9 (6) the applicant's proposed and prior year's

10 promotional and marketing activities and expenditures of

11 the applicant associated with those activities;

12 (7) an agreement, if any, among organization licensees

13 as provided in subsection (b) of Section 21 of this Act;

14 and

15 (8) the extent to which the applicant exceeds or meets

16 other standards for the issuance of an organization license

17 that the Board shall adopt by rule.

18 In granting organization licenses and allocating dates for

19 horse race meetings, the Board shall have discretion to

20 determine an overall schedule, including required simulcasts

21 of Illinois races by host tracks that will, in its judgment, be

22 conducive to the best interests of the public and the sport of

23 horse racing.

24 (e-10) The Illinois Administrative Procedure Act shall

25 apply to administrative procedures of the Board under this Act

26 for the granting of an organization license, except that (1)

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1 notwithstanding the provisions of subsection (b) of Section

2 10-40 of the Illinois Administrative Procedure Act regarding

3 cross-examination, the Board may prescribe rules limiting the

4 right of an applicant or participant in any proceeding to award

5 an organization license to conduct cross-examination of

6 witnesses at that proceeding where that cross-examination

7 would unduly obstruct the timely award of an organization

8 license under subsection (e) of Section 20 of this Act; (2) the

9 provisions of Section 10-45 of the Illinois Administrative

10 Procedure Act regarding proposals for decision are excluded

11 under this Act; (3) notwithstanding the provisions of

12 subsection (a) of Section 10-60 of the Illinois Administrative

13 Procedure Act regarding ex parte communications, the Board may

14 prescribe rules allowing ex parte communications with

15 applicants or participants in a proceeding to award an

16 organization license where conducting those communications

17 would be in the best interest of racing, provided all those

18 communications are made part of the record of that proceeding

19 pursuant to subsection (c) of Section 10-60 of the Illinois

20 Administrative Procedure Act; (4) the provisions of Section 14a

21 of this Act and the rules of the Board promulgated under that

22 Section shall apply instead of the provisions of Article 10 of

23 the Illinois Administrative Procedure Act regarding

24 administrative law judges; and (5) the provisions of subsection

25 (d) of Section 10-65 of the Illinois Administrative Procedure

26 Act that prevent summary suspension of a license pending

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1 revocation or other action shall not apply.

2 (f) The Board may allot racing dates to an organization

3 licensee for more than one calendar year but for no more than 3

4 successive calendar years in advance, provided that the Board

5 shall review such allotment for more than one calendar year

6 prior to each year for which such allotment has been made. The

7 granting of an organization license to a person constitutes a

8 privilege to conduct a horse race meeting under the provisions

9 of this Act, and no person granted an organization license

10 shall be deemed to have a vested interest, property right, or

11 future expectation to receive an organization license in any

12 subsequent year as a result of the granting of an organization

13 license. Organization licenses shall be subject to revocation

14 if the organization licensee has violated any provision of this

15 Act or the rules and regulations promulgated under this Act or

16 has been convicted of a crime or has failed to disclose or has

17 stated falsely any information called for in the application

18 for an organization license. Any organization license

19 revocation proceeding shall be in accordance with Section 16

20 regarding suspension and revocation of occupation licenses.

21 (f-5) If, (i) an applicant does not file an acceptance of

22 the racing dates awarded by the Board as required under part

23 (1) of subsection (h) of this Section 20, or (ii) an

24 organization licensee has its license suspended or revoked

25 under this Act, the Board, upon conducting an emergency hearing

26 as provided for in this Act, may reaward on an emergency basis

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1 pursuant to rules established by the Board, racing dates not

2 accepted or the racing dates associated with any suspension or

3 revocation period to one or more organization licensees, new

4 applicants, or any combination thereof, upon terms and

5 conditions that the Board determines are in the best interest

6 of racing, provided, the organization licensees or new

7 applicants receiving the awarded racing dates file an

8 acceptance of those reawarded racing dates as required under

9 paragraph (1) of subsection (h) of this Section 20 and comply

10 with the other provisions of this Act. The Illinois

11 Administrative Procedure Act shall not apply to the

12 administrative procedures of the Board in conducting the

13 emergency hearing and the reallocation of racing dates on an

14 emergency basis.

15 (g) (Blank).

16 (h) The Board shall send the applicant a copy of its

17 formally executed order by certified mail addressed to the

18 applicant at the address stated in his application, which

19 notice shall be mailed within 5 days of the date the formal

20 order is executed.

21 Each applicant notified shall, within 10 days after receipt

22 of the final executed order of the Board awarding racing dates:

23 (1) file with the Board an acceptance of such award in

24 the form prescribed by the Board;

25 (2) pay to the Board an additional amount equal to $110

26 for each racing date awarded; and

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1 (3) file with the Board the bonds required in Sections

2 21 and 25 at least 20 days prior to the first day of each

3 race meeting.

4 Upon compliance with the provisions of paragraphs (1), (2), and

5 (3) of this subsection (h), the applicant shall be issued an

6 organization license.

7 If any applicant fails to comply with this Section or fails

8 to pay the organization license fees herein provided, no

9 organization license shall be issued to such applicant.

10 (Source: P.A. 97-333, eff. 8-12-11.)

11 (230 ILCS 5/21) (from Ch. 8, par. 37-21)

12 Sec. 21. (a) Applications for organization licenses must be

13 filed with the Board at a time and place prescribed by the

14 rules and regulations of the Board. The Board shall examine the

15 applications within 21 days after the date allowed for filing

16 with respect to their conformity with this Act and such rules

17 and regulations as may be prescribed by the Board. If any

18 application does not comply with this Act or the rules and

19 regulations prescribed by the Board, such application may be

20 rejected and an organization license refused to the applicant,

21 or the Board may, within 21 days of the receipt of such

22 application, advise the applicant of the deficiencies of the

23 application under the Act or the rules and regulations of the

24 Board, and require the submittal of an amended application

25 within a reasonable time determined by the Board; and upon

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1 submittal of the amended application by the applicant, the

2 Board may consider the application consistent with the process

3 described in subsection (e-5) of Section 20 of this Act. If it

4 is found to be in compliance with this Act and the rules and

5 regulations of the Board, the Board may then issue an

6 organization license to such applicant.

7 (b) The Board may exercise discretion in granting racing

8 dates to qualified applicants different from those requested by

9 the applicants in their applications. However, if all eligible

10 applicants for organization licenses whose tracks are located

11 within 100 miles of each other execute and submit to the Board

12 a written agreement among such applicants as to the award of

13 racing dates, including where applicable racing programs, for

14 up to 3 consecutive years, then subject to annual review of

15 each applicant's compliance with Board rules and regulations,

16 provisions of this Act and conditions contained in annual dates

17 orders issued by the Board, the Board may grant such dates and

18 programs to such applicants as so agreed by them if the Board

19 determines that the grant of these racing dates is in the best

20 interests of racing. The Board shall treat any such agreement

21 as the agreement signatories' joint and several application for

22 racing dates during the term of the agreement.

23 (c) Where 2 or more applicants propose to conduct horse

24 race meetings within 35 miles of each other, as certified to

25 the Board under Section 19 (a) (1) of this Act, on conflicting

26 dates, the Board may determine and grant the number of racing

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1 days to be awarded to the several applicants in accordance with

2 the provisions of subsection (e-5) of Section 20 of this Act.

3 (d) (Blank).

4 (e) Prior to the issuance of an organization license, the

5 applicant shall file with the Board a bond payable to the State

6 of Illinois in the sum of $200,000, executed by the applicant

7 and a surety company or companies authorized to do business in

8 this State, and conditioned upon the payment by the

9 organization licensee of all taxes due under Section 27, other

10 monies due and payable under this Act, all purses due and

11 payable, and that the organization licensee will upon

12 presentation of the winning ticket or tickets distribute all

13 sums due to the patrons of pari-mutuel pools. Beginning on the

14 date when any organization licensee begins conducting

15 electronic gaming pursuant to an electronic gaming license

16 issued under the Illinois Gambling Act, the amount of the bond

17 required under this subsection (e) shall be $500,000.

18 (f) Each organization license shall specify the person to

19 whom it is issued, the dates upon which horse racing is

20 permitted, and the location, place, track, or enclosure where

21 the horse race meeting is to be held.

22 (g) Any person who owns one or more race tracks within the

23 State may seek, in its own name, a separate organization

24 license for each race track.

25 (h) All racing conducted under such organization license is

26 subject to this Act and to the rules and regulations from time

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1 to time prescribed by the Board, and every such organization

2 license issued by the Board shall contain a recital to that

3 effect.

4 (i) Each such organization licensee may provide that at

5 least one race per day may be devoted to the racing of quarter

6 horses, appaloosas, arabians, or paints.

7 (j) In acting on applications for organization licenses,

8 the Board shall give weight to an organization license which

9 has implemented a good faith affirmative action effort to

10 recruit, train and upgrade minorities in all classifications

11 within the organization license.

12 (Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)

13 (230 ILCS 5/24) (from Ch. 8, par. 37-24)

14 Sec. 24. (a) No license shall be issued to or held by an

15 organization licensee unless all of its officers, directors,

16 and holders of ownership interests of at least 5% are first

17 approved by the Board. The Board shall not give approval of an

18 organization license application to any person who has been

19 convicted of or is under an indictment for a crime of moral

20 turpitude or has violated any provision of the racing law of

21 this State or any rules of the Board.

22 (b) An organization licensee must notify the Board within

23 10 days of any change in the holders of a direct or indirect

24 interest in the ownership of the organization licensee. The

25 Board may, after hearing, revoke the organization license of

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1 any person who registers on its books or knowingly permits a

2 direct or indirect interest in the ownership of that person

3 without notifying the Board of the name of the holder in

4 interest within this period.

5 (c) In addition to the provisions of subsection (a) of this

6 Section, no person shall be granted an organization license if

7 any public official of the State or member of his or her family

8 holds any ownership or financial interest, directly or

9 indirectly, in the person.

10 (d) No person which has been granted an organization

11 license to hold a race meeting shall give to any public

12 official or member of his family, directly or indirectly, for

13 or without consideration, any interest in the person. The Board

14 shall, after hearing, revoke the organization license granted

15 to a person which has violated this subsection.

16 (e) (Blank).

17 (f) No organization licensee or concessionaire or officer,

18 director or holder or controller of 5% or more legal or

19 beneficial interest in any organization licensee or concession

20 shall make any sort of gift or contributionthat is prohibited

21 under Article 10 of the State Officials and Employees Ethics

22 Act ~~of any kind~~or pay or give any money or other thing of value

23 to any person who is a public official, or a candidate or

24 nominee for public office if that payment or gift is prohibited

25 under Article 10 of the State Officials and Employees Ethics

26 Act.

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1 (Source: P.A. 89-16, eff. 5-30-95.)

2 (230 ILCS 5/25) (from Ch. 8, par. 37-25)

3 Sec. 25. Admission charge; bond; fine.

4 (a) There shall be paid to the Board at such time or times

5 as it shall prescribe, the sum of fifteen cents (15�) for each

6 person entering the grounds or enclosure of each organization

7 licensee and inter-track wagering licensee upon a ticket of

8 admission except as provided in subsection (g) of Section 27 of

9 this Act. If tickets are issued for more than one day then the

10 sum of fifteen cents (15�) shall be paid for each person using

11 such ticket on each day that the same shall be used. Provided,

12 however, that no charge shall be made on tickets of admission

13 issued to and in the name of directors, officers, agents or

14 employees of the organization licensee, or inter-track

15 wagering licensee, or to owners, trainers, jockeys, drivers and

16 their employees or to any person or persons entering the

17 grounds or enclosure for the transaction of business in

18 connection with such race meeting. The organization licensee or

19 inter-track wagering licensee may, if it desires, collect such

20 amount from each ticket holder in addition to the amount or

21 amounts charged for such ticket of admission.Beginning on the

22 date when any organization licensee begins conducting

23 electronic gaming pursuant to an electronic gaming license

24 issued under the Illinois Gambling Act, the admission charge

25 imposed by this subsection (a) shall be 40 cents for each

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1 person entering the grounds or enclosure of each organization

2 licensee and inter-track wagering licensee upon a ticket of

3 admission, and if such tickets are issued for more than one

4 day, 40 cents shall be paid for each person using such ticket

5 on each day that the same shall be used.

6 (b) Accurate records and books shall at all times be kept

7 and maintained by the organization licensees and inter-track

8 wagering licensees showing the admission tickets issued and

9 used on each racing day and the attendance thereat of each

10 horse racing meeting. The Board or its duly authorized

11 representative or representatives shall at all reasonable

12 times have access to the admission records of any organization

13 licensee and inter-track wagering licensee for the purpose of

14 examining and checking the same and ascertaining whether or not

15 the proper amount has been or is being paid the State of

16 Illinois as herein provided. The Board shall also require,

17 before issuing any license, that the licensee shall execute and

18 deliver to it a bond, payable to the State of Illinois, in such

19 sum as it shall determine, not, however, in excess of fifty

20 thousand dollars ($50,000), with a surety or sureties to be

21 approved by it, conditioned for the payment of all sums due and

22 payable or collected by it under this Section upon admission

23 fees received for any particular racing meetings. The Board may

24 also from time to time require sworn statements of the number

25 or numbers of such admissions and may prescribe blanks upon

26 which such reports shall be made. Any organization licensee or

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1 inter-track wagering licensee failing or refusing to pay the

2 amount found to be due as herein provided, shall be deemed

3 guilty of a business offense and upon conviction shall be

4 punished by a fine of not more than five thousand dollars

5 ($5,000) in addition to the amount due from such organization

6 licensee or inter-track wagering licensee as herein provided.

7 All fines paid into court by an organization licensee or

8 inter-track wagering licensee found guilty of violating this

9 Section shall be transmitted and paid over by the clerk of the

10 court to the Board. Beginning on the date when any organization

11 licensee begins conducting electronic gaming pursuant to an

12 electronic gaming license issued under the Illinois Gambling

13 Act, any fine imposed pursuant to this subsection (b) shall not

14 exceed $10,000.

15 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)

16 (230 ILCS 5/26) (from Ch. 8, par. 37-26)

17 Sec. 26. Wagering.

18 (a) Any licensee may conduct and supervise the pari-mutuel

19 system of wagering, as defined in Section 3.12 of this Act, on

20 horse races conducted by an Illinois organization licensee or

21 conducted at a racetrack located in another state or country

22 ~~and televised in Illinois~~ in accordance with subsection (g) of

23 Section 26 of this Act. Subject to the prior consent of the

24 Board, licensees may supplement any pari-mutuel pool in order

25 to guarantee a minimum distribution. Such pari-mutuel method of

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1 wagering shall not, under any circumstances if conducted under

2 the provisions of this Act, be held or construed to be

3 unlawful, other statutes of this State to the contrary

4 notwithstanding. Subject to rules for advance wagering

5 promulgated by the Board, any licensee may accept wagers in

6 advance of the day of the race wagered upon occurs.

7 (b) Except for those gaming activities for which a license

8 is obtained and authorized under the Illinois Lottery Law, the

9 Charitable Games Act, the Raffles and Poker Runs Act, or the

10 Illinois Gambling Act, no ~~No~~ other method of betting, pool

11 making, wagering or gambling shall be used or permitted by the

12 licensee. Each licensee may retain, subject to the payment of

13 all applicable taxes and purses, an amount not to exceed 17% of

14 all money wagered under subsection (a) of this Section, except

15 as may otherwise be permitted under this Act.

16 (b-5) An individual may place a wager under the pari-mutuel

17 system from any licensed location authorized under this Act

18 provided that wager is electronically recorded in the manner

19 described in Section 3.12 of this Act. Any wager made

20 electronically by an individual while physically on the

21 premises of a licensee shall be deemed to have been made at the

22 premises of that licensee.

23 (c) Until January 1, 2000, the sum held by any licensee for

24 payment of outstanding pari-mutuel tickets, if unclaimed prior

25 to December 31 of the next year, shall be retained by the

26 licensee for payment of such tickets until that date. Within 10

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1 days thereafter, the balance of such sum remaining unclaimed,

2 less any uncashed supplements contributed by such licensee for

3 the purpose of guaranteeing minimum distributions of any

4 pari-mutuel pool, shall be paid to the Illinois Veterans'

5 Rehabilitation Fund of the State treasury, except as provided

6 in subsection (g) of Section 27 of this Act.

7 (c-5) Beginning January 1, 2000, the sum held by any

8 licensee for payment of outstanding pari-mutuel tickets, if

9 unclaimed prior to December 31 of the next year, shall be

10 retained by the licensee for payment of such tickets until that

11 date. Within 10 days thereafter, the balance of such sum

12 remaining unclaimed, less any uncashed supplements contributed

13 by such licensee for the purpose of guaranteeing minimum

14 distributions of any pari-mutuel pool, shall be evenly

15 distributed to the purse account of the organization licensee

16 and the organization licensee.

17 (d) A pari-mutuel ticket shall be honored until December 31

18 of the next calendar year, and the licensee shall pay the same

19 and may charge the amount thereof against unpaid money

20 similarly accumulated on account of pari-mutuel tickets not

21 presented for payment.

22 (e) No licensee shall knowingly permit any minor, other

23 than an employee of such licensee or an owner, trainer, jockey,

24 driver, or employee thereof, to be admitted during a racing

25 program unless accompanied by a parent or guardian, or any

26 minor to be a patron of the pari-mutuel system of wagering

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1 conducted or supervised by it. The admission of any

2 unaccompanied minor, other than an employee of the licensee or

3 an owner, trainer, jockey, driver, or employee thereof at a

4 race track is a Class C misdemeanor.

5 (f) Notwithstanding the other provisions of this Act, an

6 organization licensee may contract with an entity in another

7 state or country to permit any legal wagering entity in another

8 state or country to accept wagers solely within such other

9 state or country on races conducted by the organization

10 licensee in this State. Beginning January 1, 2000, these wagers

11 shall not be subject to State taxation. Until January 1, 2000,

12 when the out-of-State entity conducts a pari-mutuel pool

13 separate from the organization licensee, a privilege tax equal

14 to 7 1/2% of all monies received by the organization licensee

15 from entities in other states or countries pursuant to such

16 contracts is imposed on the organization licensee, and such

17 privilege tax shall be remitted to the Department of Revenue

18 within 48 hours of receipt of the moneys from the simulcast.

19 When the out-of-State entity conducts a combined pari-mutuel

20 pool with the organization licensee, the tax shall be 10% of

21 all monies received by the organization licensee with 25% of

22 the receipts from this 10% tax to be distributed to the county

23 in which the race was conducted.

24 An organization licensee may permit one or more of its

25 races to be utilized for pari-mutuel wagering at one or more

26 locations in other states and may transmit audio and visual

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1 signals of races the organization licensee conducts to one or

2 more locations outside the State or country and may also permit

3 pari-mutuel pools in other states or countries to be combined

4 with its gross or net wagering pools or with wagering pools

5 established by other states.

6 (g) A host track may accept interstate simulcast wagers on

7 horse races conducted in other states or countries and shall

8 control the number of signals and types of breeds of racing in

9 its simulcast program, subject to the disapproval of the Board.

10 The Board may prohibit a simulcast program only if it finds

11 that the simulcast program is clearly adverse to the integrity

12 of racing. The host track simulcast program shall include the

13 signal of live racing of all organization licensees. All

14 non-host licensees and advance deposit wagering licensees

15 shall carry the signal of and accept wagers on live racing of

16 all organization licensees. Advance deposit wagering licensees

17 shall not be permitted to accept out-of-state wagers on any

18 Illinois signal provided pursuant to this Section without the

19 approval and consent of the organization licensee providing the

20 signal. For one year after August 15, 2014 (the effective date

21 of Public Act 98-968) ~~this amendatory Act of the 98th General~~

22 ~~Assembly~~, non-host licensees may carry the host track simulcast

23 program and shall accept wagers on all races included as part

24 of the simulcast program of horse races conducted at race

25 tracks located within North America upon which wagering is

26 permitted. For a period of one year after August 15, 2014 (the

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1 effective date of Public Act 98-968) ~~this amendatory Act of the~~

2 ~~98th General Assembly~~, on horse races conducted at race tracks

3 located outside of North America, non-host licensees may accept

4 wagers on all races included as part of the simulcast program

5 upon which wagering is permitted. Beginning August 15, 2015

6 (one year after the effective date of Public Act 98-968) ~~this~~

7 ~~amendatory Act of the 98th General Assembly~~, non-host licensees

8 may carry the host track simulcast program and shall accept

9 wagers on all races included as part of the simulcast program

10 upon which wagering is permitted. All organization licensees

11 shall provide their live signal to all advance deposit wagering

12 licensees for a simulcast commission fee not to exceed 6% of

13 the advance deposit wagering licensee's Illinois handle on the

14 organization licensee's signal without prior approval by the

15 Board. The Board may adopt rules under which it may permit

16 simulcast commission fees in excess of 6%. The Board shall

17 adopt rules limiting the interstate commission fees charged to

18 an advance deposit wagering licensee. The Board shall adopt

19 rules regarding advance deposit wagering on interstate

20 simulcast races that shall reflect, among other things, the

21 General Assembly's desire to maximize revenues to the State,

22 horsemen purses, and organizational licensees. However,

23 organization licensees providing live signals pursuant to the

24 requirements of this subsection (g) may petition the Board to

25 withhold their live signals from an advance deposit wagering

26 licensee if the organization licensee discovers and the Board

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1 finds reputable or credible information that the advance

2 deposit wagering licensee is under investigation by another

3 state or federal governmental agency, the advance deposit

4 wagering licensee's license has been suspended in another

5 state, or the advance deposit wagering licensee's license is in

6 revocation proceedings in another state. The organization

7 licensee's provision of their live signal to an advance deposit

8 wagering licensee under this subsection (g) pertains to wagers

9 placed from within Illinois. Advance deposit wagering

10 licensees may place advance deposit wagering terminals at

11 wagering facilities as a convenience to customers. The advance

12 deposit wagering licensee shall not charge or collect any fee

13 from purses for the placement of the advance deposit wagering

14 terminals. The costs and expenses of the host track and

15 non-host licensees associated with interstate simulcast

16 wagering, other than the interstate commission fee, shall be

17 borne by the host track and all non-host licensees incurring

18 these costs. The interstate commission fee shall not exceed 5%

19 of Illinois handle on the interstate simulcast race or races

20 without prior approval of the Board. The Board shall promulgate

21 rules under which it may permit interstate commission fees in

22 excess of 5%. The interstate commission fee and other fees

23 charged by the sending racetrack, including, but not limited

24 to, satellite decoder fees, shall be uniformly applied to the

25 host track and all non-host licensees.

26 Notwithstanding any other provision of this Act, through

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1 December 31, 2018, an organization licensee, with the consent

2 of the horsemen association representing the largest number of

3 owners, trainers, jockeys, or standardbred drivers who race

4 horses at that organization licensee's racing meeting, may

5 maintain a system whereby advance deposit wagering may take

6 place or an organization licensee, with the consent of the

7 horsemen association representing the largest number of

8 owners, trainers, jockeys, or standardbred drivers who race

9 horses at that organization licensee's racing meeting, may

10 contract with another person to carry out a system of advance

11 deposit wagering. Such consent may not be unreasonably

12 withheld. Only with respect to an appeal to the Board that

13 consent for an organization licensee that maintains its own

14 advance deposit wagering system is being unreasonably

15 withheld, the Board shall issue a final order within 30 days

16 after initiation of the appeal, and the organization licensee's

17 advance deposit wagering system may remain operational during

18 that 30-day period. The actions of any organization licensee

19 who conducts advance deposit wagering or any person who has a

20 contract with an organization licensee to conduct advance

21 deposit wagering who conducts advance deposit wagering on or

22 after January 1, 2013 and prior to June 7, 2013 (the effective

23 date of Public Act 98-18) ~~this amendatory Act of the 98th~~

24 ~~General Assembly~~ taken in reliance on the changes made to this

25 subsection (g) by Public Act 98-18 ~~this amendatory Act of the~~

26 ~~98th General Assembly~~ are hereby validated, provided payment of

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1 all applicable pari-mutuel taxes are remitted to the Board. All

2 advance deposit wagers placed from within Illinois must be

3 placed through a Board-approved advance deposit wagering

4 licensee; no other entity may accept an advance deposit wager

5 from a person within Illinois. All advance deposit wagering is

6 subject to any rules adopted by the Board. The Board may adopt

7 rules necessary to regulate advance deposit wagering through

8 the use of emergency rulemaking in accordance with Section 5-45

9 of the Illinois Administrative Procedure Act. The General

10 Assembly finds that the adoption of rules to regulate advance

11 deposit wagering is deemed an emergency and necessary for the

12 public interest, safety, and welfare. An advance deposit

13 wagering licensee may retain all moneys as agreed to by

14 contract with an organization licensee. Any moneys retained by

15 the organization licensee from advance deposit wagering, not

16 including moneys retained by the advance deposit wagering

17 licensee, shall be paid 50% to the organization licensee's

18 purse account and 50% to the organization licensee. With the

19 exception of any organization licensee that is owned by a

20 publicly traded company that is incorporated in a state other

21 than Illinois and advance deposit wagering licensees under

22 contract with such organization licensees, organization

23 licensees that maintain advance deposit wagering systems and

24 advance deposit wagering licensees that contract with

25 organization licensees shall provide sufficiently detailed

26 monthly accountings to the horsemen association representing

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1 the largest number of owners, trainers, jockeys, or

2 standardbred drivers who race horses at that organization

3 licensee's racing meeting so that the horsemen association, as

4 an interested party, can confirm the accuracy of the amounts

5 paid to the purse account at the horsemen association's

6 affiliated organization licensee from advance deposit

7 wagering. If more than one breed races at the same race track

8 facility, then the 50% of the moneys to be paid to an

9 organization licensee's purse account shall be allocated among

10 all organization licensees' purse accounts operating at that

11 race track facility proportionately based on the actual number

12 of host days that the Board grants to that breed at that race

13 track facility in the current calendar year. To the extent any

14 fees from advance deposit wagering conducted in Illinois for

15 wagers in Illinois or other states have been placed in escrow

16 or otherwise withheld from wagers pending a determination of

17 the legality of advance deposit wagering, no action shall be

18 brought to declare such wagers or the disbursement of any fees

19 previously escrowed illegal.

20 (1) Between the hours of 6:30 a.m. and 6:30 p.m. an

21 inter-track ~~intertrack~~wagering licensee other than the

22 host track may supplement the host track simulcast program

23 with additional simulcast races or race programs, provided

24 that between January 1 and the third Friday in February of

25 any year, inclusive, if no live thoroughbred racing is

26 occurring in Illinois during this period, only

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1 thoroughbred races may be used for supplemental interstate

2 simulcast purposes. The Board shall withhold approval for a

3 supplemental interstate simulcast only if it finds that the

4 simulcast is clearly adverse to the integrity of racing. A

5 supplemental interstate simulcast may be transmitted from

6 an inter-track ~~intertrack~~wagering licensee to its

7 affiliated non-host licensees. The interstate commission

8 fee for a supplemental interstate simulcast shall be paid

9 by the non-host licensee and its affiliated non-host

10 licensees receiving the simulcast.

11 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an

12 inter-track ~~intertrack~~wagering licensee other than the

13 host track may receive supplemental interstate simulcasts

14 only with the consent of the host track, except when the

15 Board finds that the simulcast is clearly adverse to the

16 integrity of racing. Consent granted under this paragraph

17 (2) to any inter-track ~~intertrack~~ wagering licensee shall

18 be deemed consent to all non-host licensees. The interstate

19 commission fee for the supplemental interstate simulcast

20 shall be paid by all participating non-host licensees.

21 (3) Each licensee conducting interstate simulcast

22 wagering may retain, subject to the payment of all

23 applicable taxes and the purses, an amount not to exceed

24 17% of all money wagered. If any licensee conducts the

25 pari-mutuel system wagering on races conducted at

26 racetracks in another state or country, each such race or

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1 race program shall be considered a separate racing day for

2 the purpose of determining the daily handle and computing

3 the privilege tax of that daily handle as provided in

4 subsection (a) of Section 27. Until January 1, 2000, from

5 the sums permitted to be retained pursuant to this

6 subsection, eachinter-track ~~intertrack~~ wagering location

7 licensee shall pay 1% of the pari-mutuel handle wagered on

8 simulcast wagering to the Horse Racing Tax Allocation Fund,

9 subject to the provisions of subparagraph (B) of paragraph

10 (11) of subsection (h) of Section 26 of this Act.

11 (4) A licensee who receives an interstate simulcast may

12 combine its gross or net pools with pools at the sending

13 racetracks pursuant to rules established by the Board. All

14 licensees combining their gross pools at a sending

15 racetrack shall adopt the take-out percentages of the

16 sending racetrack. A licensee may also establish a separate

17 pool and takeout structure for wagering purposes on races

18 conducted at race tracks outside of the State of Illinois.

19 The licensee may permit pari-mutuel wagers placed in other

20 states or countries to be combined with its gross or net

21 wagering pools or other wagering pools.

22 (5) After the payment of the interstate commission fee

23 (except for the interstate commission fee on a supplemental

24 interstate simulcast, which shall be paid by the host track

25 and by each non-host licensee through the host-track) and

26 all applicable State and local taxes, except as provided in

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1 subsection (g) of Section 27 of this Act, the remainder of

2 moneys retained from simulcast wagering pursuant to this

3 subsection (g), and Section 26.2 shall be divided as

4 follows:

5 (A) For interstate simulcast wagers made at a host

6 track, 50% to the host track and 50% to purses at the

7 host track.

8 (B) For wagers placed on interstate simulcast

9 races, supplemental simulcasts as defined in

10 subparagraphs (1) and (2), and separately pooled races

11 conducted outside of the State of Illinois made at a

12 non-host licensee, 25% to the host track, 25% to the

13 non-host licensee, and 50% to the purses at the host

14 track.

15 (6) Notwithstanding any provision in this Act to the

16 contrary, non-host licensees who derive their licenses

17 from a track located in a county with a population in

18 excess of 230,000 and that borders the Mississippi River

19 may receive supplemental interstate simulcast races at all

20 times subject to Board approval, which shall be withheld

21 only upon a finding that a supplemental interstate

22 simulcast is clearly adverse to the integrity of racing.

23 (7) Notwithstanding any provision of this Act to the

24 contrary, after payment of all applicable State and local

25 taxes and interstate commission fees, non-host licensees

26 who derive their licenses from a track located in a county

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1 with a population in excess of 230,000 and that borders the

2 Mississippi River shall retain 50% of the retention from

3 interstate simulcast wagers and shall pay 50% to purses at

4 the track from which the non-host licensee derives its

5 license as follows:

6 (A) Between January 1 and the third Friday in

7 February, inclusive, if no live thoroughbred racing is

8 occurring in Illinois during this period, when the

9 interstate simulcast is a standardbred race, the purse

10 share to its standardbred purse account;

11 (B) Between January 1 and the third Friday in

12 February, inclusive, if no live thoroughbred racing is

13 occurring in Illinois during this period, and the

14 interstate simulcast is a thoroughbred race, the purse

15 share to its interstate simulcast purse pool to be

16 distributed under paragraph (10) of this subsection

17 (g);

18 (C) Between January 1 and the third Friday in

19 February, inclusive, if live thoroughbred racing is

20 occurring in Illinois, between 6:30 a.m. and 6:30 p.m.

21 the purse share from wagers made during this time

22 period to its thoroughbred purse account and between

23 6:30 p.m. and 6:30 a.m. the purse share from wagers

24 made during this time period to its standardbred purse

25 accounts;

26 (D) Between the third Saturday in February and

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1 December 31, when the interstate simulcast occurs

2 between the hours of 6:30 a.m. and 6:30 p.m., the purse

3 share to its thoroughbred purse account;

4 (E) Between the third Saturday in February and

5 December 31, when the interstate simulcast occurs

6 between the hours of 6:30 p.m. and 6:30 a.m., the purse

7 share to its standardbred purse account.

8 (7.1) Notwithstanding any other provision of this Act

9 to the contrary, if no standardbred racing is conducted at

10 a racetrack located in Madison County during any calendar

11 year beginning on or after January 1, 2002, all moneys

12 derived by that racetrack from simulcast wagering and

13 inter-track wagering that (1) are to be used for purses and

14 (2) are generated between the hours of 6:30 p.m. and 6:30

15 a.m. during that calendar year shall be paid as follows:

16 (A) If the licensee that conducts horse racing at

17 that racetrack requests from the Board at least as many

18 racing dates as were conducted in calendar year 2000,

19 80% shall be paid to its thoroughbred purse account;

20 and

21 (B) Twenty percent shall be deposited into the

22 Illinois Colt Stakes Purse Distribution Fund and shall

23 be paid to purses for standardbred races for Illinois

24 conceived and foaled horses conducted at any county

25 fairgrounds. The moneys deposited into the Fund

26 pursuant to this subparagraph (B) shall be deposited

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1 within 2 weeks after the day they were generated, shall

2 be in addition to and not in lieu of any other moneys

3 paid to standardbred purses under this Act, and shall

4 not be commingled with other moneys paid into that

5 Fund. The moneys deposited pursuant to this

6 subparagraph (B) shall be allocated as provided by the

7 Department of Agriculture, with the advice and

8 assistance of the Illinois Standardbred Breeders Fund

9 Advisory Board.

10 (7.2) Notwithstanding any other provision of this Act

11 to the contrary, if no thoroughbred racing is conducted at

12 a racetrack located in Madison County during any calendar

13 year beginning on or after January 1, 2002, all moneys

14 derived by that racetrack from simulcast wagering and

15 inter-track wagering that (1) are to be used for purses and

16 (2) are generated between the hours of 6:30 a.m. and 6:30

17 p.m. during that calendar year shall be deposited as

18 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 deposited into its standardbred purse

23 account; and

24 (B) Twenty percent shall be deposited into the

25 Illinois Colt Stakes Purse Distribution Fund. Moneys

26 deposited into the Illinois Colt Stakes Purse

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1 Distribution Fund pursuant to this subparagraph (B)

2 shall be paid to Illinois conceived and foaled

3 thoroughbred breeders' programs and to thoroughbred

4 purses for races conducted at any county fairgrounds

5 for Illinois conceived and foaled horses at the

6 discretion of the Department of Agriculture, with the

7 advice and assistance of the Illinois Thoroughbred

8 Breeders Fund Advisory Board. The moneys deposited

9 into the Illinois Colt Stakes Purse Distribution Fund

10 pursuant to this subparagraph (B) shall be deposited

11 within 2 weeks after the day they were generated, shall

12 be in addition to and not in lieu of any other moneys

13 paid to thoroughbred purses under this Act, and shall

14 not be commingled with other moneys deposited into that

15 Fund.

16 (7.3) If no live standardbred racing is conducted at a

17 racetrack located in Madison County in calendar year 2000

18 or 2001, an organization licensee who is licensed to

19 conduct horse racing at that racetrack shall, before

20 January 1, 2002, pay all moneys derived from simulcast

21 wagering and inter-track wagering in calendar years 2000

22 and 2001 and paid into the licensee's standardbred purse

23 account as follows:

24 (A) Eighty percent to that licensee's thoroughbred

25 purse account to be used for thoroughbred purses; and

26 (B) Twenty percent to the Illinois Colt Stakes

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1 Purse Distribution Fund.

2 Failure to make the payment to the Illinois Colt Stakes

3 Purse Distribution Fund before January 1, 2002 shall result

4 in the immediate revocation of the licensee's organization

5 license, inter-track wagering license, and inter-track

6 wagering location license.

7 Moneys paid into the Illinois Colt Stakes Purse

8 Distribution Fund pursuant to this paragraph (7.3) shall be

9 paid to purses for standardbred races for Illinois

10 conceived and foaled horses conducted at any county

11 fairgrounds. Moneys paid into the Illinois Colt Stakes

12 Purse Distribution Fund pursuant to this paragraph (7.3)

13 shall be used as determined by the Department of

14 Agriculture, with the advice and assistance of the Illinois

15 Standardbred Breeders Fund Advisory Board, shall be in

16 addition to and not in lieu of any other moneys paid to

17 standardbred purses under this Act, and shall not be

18 commingled with any other moneys paid into that Fund.

19 (7.4) If live standardbred racing is conducted at a

20 racetrack located in Madison County at any time in calendar

21 year 2001 before the payment required under paragraph (7.3)

22 has been made, the organization licensee who is licensed to

23 conduct racing at that racetrack shall pay all moneys

24 derived by that racetrack from simulcast wagering and

25 inter-track wagering during calendar years 2000 and 2001

26 that (1) are to be used for purses and (2) are generated

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1 between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or

2 2001 to the standardbred purse account at that racetrack to

3 be used for standardbred purses.

4 (8) Notwithstanding any provision in this Act to the

5 contrary, an organization licensee from a track located in

6 a county with a population in excess of 230,000 and that

7 borders the Mississippi River and its affiliated non-host

8 licensees shall not be entitled to share in any retention

9 generated on racing, inter-track wagering, or simulcast

10 wagering at any other Illinois wagering facility.

11 (8.1) Notwithstanding any provisions in this Act to the

12 contrary, if 2 organization licensees are conducting

13 standardbred race meetings concurrently between the hours

14 of 6:30 p.m. and 6:30 a.m., after payment of all applicable

15 State and local taxes and interstate commission fees, the

16 remainder of the amount retained from simulcast wagering

17 otherwise attributable to the host track and to host track

18 purses shall be split daily between the 2 organization

19 licensees and the purses at the tracks of the 2

20 organization licensees, respectively, based on each

21 organization licensee's share of the total live handle for

22 that day, provided that this provision shall not apply to

23 any non-host licensee that derives its license from a track

24 located in a county with a population in excess of 230,000

25 and that borders the Mississippi River.

26 (9) (Blank).

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1 (10) (Blank).

2 (11) (Blank).

3 (12) The Board shall have authority to compel all host

4 tracks to receive the simulcast of any or all races

5 conducted at the Springfield or DuQuoin State fairgrounds

6 and include all such races as part of their simulcast

7 programs.

8 (13) Notwithstanding any other provision of this Act,

9 in the event that the total Illinois pari-mutuel handle on

10 Illinois horse races at all wagering facilities in any

11 calendar year is less than 75% of the total Illinois

12 pari-mutuel handle on Illinois horse races at all such

13 wagering facilities for calendar year 1994, then each

14 wagering facility that has an annual total Illinois

15 pari-mutuel handle on Illinois horse races that is less

16 than 75% of the total Illinois pari-mutuel handle on

17 Illinois horse races at such wagering facility for calendar

18 year 1994, shall be permitted to receive, from any amount

19 otherwise payable to the purse account at the race track

20 with which the wagering facility is affiliated in the

21 succeeding calendar year, an amount equal to 2% of the

22 differential in total Illinois pari-mutuel handle on

23 Illinois horse races at the wagering facility between that

24 calendar year in question and 1994 provided, however, that

25 a wagering facility shall not be entitled to any such

26 payment until the Board certifies in writing to the

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1 wagering facility the amount to which the wagering facility

2 is entitled and a schedule for payment of the amount to the

3 wagering facility, based on: (i) the racing dates awarded

4 to the race track affiliated with the wagering facility

5 during the succeeding year; (ii) the sums available or

6 anticipated to be available in the purse account of the

7 race track affiliated with the wagering facility for purses

8 during the succeeding year; and (iii) the need to ensure

9 reasonable purse levels during the payment period. The

10 Board's certification shall be provided no later than

11 January 31 of the succeeding year. In the event a wagering

12 facility entitled to a payment under this paragraph (13) is

13 affiliated with a race track that maintains purse accounts

14 for both standardbred and thoroughbred racing, the amount

15 to be paid to the wagering facility shall be divided

16 between each purse account pro rata, based on the amount of

17 Illinois handle on Illinois standardbred and thoroughbred

18 racing respectively at the wagering facility during the

19 previous calendar year. Annually, the General Assembly

20 shall appropriate sufficient funds from the General

21 Revenue Fund to the Department of Agriculture for payment

22 into the thoroughbred and standardbred horse racing purse

23 accounts at Illinois pari-mutuel tracks. The amount paid to

24 each purse account shall be the amount certified by the

25 Illinois Racing Board in January to be transferred from

26 each account to each eligible racing facility in accordance

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1 with the provisions of this Section. Beginning in the

2 calendar year in which an organization licensee that is

3 eligible to receive payment under this paragraph (13)

4 begins to receive funds from electronic gaming, the amount

5 of the payment due to all wagering facilities licensed

6 under that organization licensee under this paragraph (13)

7 shall be the amount certified by the Board in January of

8 that year. An organization licensee and its related

9 wagering facilities shall no longer be able to receive

10 payments under this paragraph (13) beginning in the year

11 subsequent to the first year in which the organization

12 licensee begins to receive funds from electronic gaming.

13 (h) The Board may approve and license the conduct of

14 inter-track wagering and simulcast wagering by inter-track

15 wagering licensees and inter-track wagering location licensees

16 subject to the following terms and conditions:

17 (1) Any person licensed to conduct a race meeting (i)

18 at a track where 60 or more days of racing were conducted

19 during the immediately preceding calendar year or where

20 over the 5 immediately preceding calendar years an average

21 of 30 or more days of racing were conducted annually may be

22 issued an inter-track wagering license; (ii) at a track

23 located in a county that is bounded by the Mississippi

24 River, which has a population of less than 150,000

25 according to the 1990 decennial census, and an average of

26 at least 60 days of racing per year between 1985 and 1993

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1 may be issued an inter-track wagering license; or (iii) at

2 a track located in Madison County that conducted at least

3 100 days of live racing during the immediately preceding

4 calendar year may be issued an inter-track wagering

5 license, unless a lesser schedule of live racing is the

6 result of (A) weather, unsafe track conditions, or other

7 acts of God; (B) an agreement between the organization

8 licensee and the associations representing the largest

9 number of owners, trainers, jockeys, or standardbred

10 drivers who race horses at that organization licensee's

11 racing meeting; or (C) a finding by the Board of

12 extraordinary circumstances and that it was in the best

13 interest of the public and the sport to conduct fewer than

14 100 days of live racing. Any such person having operating

15 control of the racing facility may receive inter-track

16 wagering location licenses. An eligible race track located

17 in a county that has a population of more than 230,000 and

18 that is bounded by the Mississippi River may establish up

19 to 9 inter-track wagering locations, ~~and~~ an eligible race

20 track located in Stickney Township in Cook County may

21 establish up to 16 inter-track wagering locations, and an

22 eligible race track located in Palatine Township in Cook

23 County may establish up to 18 inter-track wagering

24 locations. An application for said license shall be filed

25 with the Board prior to such dates as may be fixed by the

26 Board. With an application for an inter-track wagering

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1 location license there shall be delivered to the Board a

2 certified check or bank draft payable to the order of the

3 Board for an amount equal to $500. The application shall be

4 on forms prescribed and furnished by the Board. The

5 application shall comply with all other rules, regulations

6 and conditions imposed by the Board in connection

7 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 than4 ~~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 that are within 160 miles of

26 that race track where the particular organization licensee

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1 is licensed to conduct racing. However, inter-track

2 wagering and simulcast wagering shall not be conducted by

3 those licensees at any location within 5 miles of any race

4 track at which a horse race meeting has been licensed in

5 the current year, unless the person having operating

6 control of such race track has given its written consent to

7 such inter-track wagering location licensees, which

8 consent must be filed with the Board at or prior to the

9 time application is made. In the case of any inter-track

10 wagering location licensee initially licensed after

11 December 31, 2013, inter-track wagering and simulcast

12 wagering shall not be conducted by those inter-track

13 wagering location licensees that are located outside the

14 City of Chicago at any location within 8 miles of any race

15 track at which a horse race meeting has been licensed in

16 the current year, unless the person having operating

17 control of such race track has given its written consent to

18 such inter-track wagering location licensees, which

19 consent must be filed with the Board at or prior to the

20 time application is made.

21 (8.2) Inter-track wagering or simulcast wagering shall

22 not be conducted by an inter-track wagering location

23 licensee at any location within 500 feet of an existing

24 church, an ~~or~~ existing elementary or secondary public

25 school, or an existing elementary or secondary private

26 school registered with or recognized by the State Board of

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1 Education ~~school~~, nor within 500 feet of the residences of

2 more than 50 registered voters without receiving written

3 permission from a majority of the registered voters at such

4 residences. Such written permission statements shall be

5 filed with the Board. The distance of 500 feet shall be

6 measured to the nearest part of any building used for

7 worship services, education programs, residential

8 purposes, or conducting inter-track wagering by an

9 inter-track wagering location licensee, and not to

10 property boundaries. However, inter-track wagering or

11 simulcast wagering may be conducted at a site within 500

12 feet of a church, school or residences of 50 or more

13 registered voters if such church, school or residences have

14 been erected or established, or such voters have been

15 registered, after the Board issues the original

16 inter-track wagering location license at the site in

17 question. Inter-track wagering location licensees may

18 conduct inter-track wagering and simulcast wagering only

19 in areas that are zoned for commercial or manufacturing

20 purposes or in areas for which a special use has been

21 approved by the local zoning authority. However, no license

22 to conduct inter-track wagering and simulcast wagering

23 shall be granted by the Board with respect to any

24 inter-track wagering location within the jurisdiction of

25 any local zoning authority which has, by ordinance or by

26 resolution, prohibited the establishment of an inter-track

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1 wagering location within its jurisdiction. However,

2 inter-track wagering and simulcast wagering may be

3 conducted at a site if such ordinance or resolution is

4 enacted after the Board licenses the original inter-track

5 wagering location licensee for the site in question.

6 (9) (Blank).

7 (10) An inter-track wagering licensee or an

8 inter-track wagering location licensee may retain, subject

9 to the payment of the privilege taxes and the purses, an

10 amount not to exceed 17% of all money wagered. Each program

11 of racing conducted by each inter-track wagering licensee

12 or inter-track wagering location licensee shall be

13 considered a separate racing day for the purpose of

14 determining the daily handle and computing the privilege

15 tax or pari-mutuel tax on such daily handle as provided in

16 Section 27.

17 (10.1) Except as provided in subsection (g) of Section

18 27 of this Act, inter-track wagering location licensees

19 shall pay 1% of the pari-mutuel handle at each location to

20 the municipality in which such location is situated and 1%

21 of the pari-mutuel handle at each location to the county in

22 which such location is situated. In the event that an

23 inter-track wagering location licensee is situated in an

24 unincorporated area of a county, such licensee shall pay 2%

25 of the pari-mutuel handle from such location to such

26 county.

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1 (10.2) Notwithstanding any other provision of this

2 Act, with respect to inter-track~~intertrack~~ wagering at a

3 race track located in a county that has a population of

4 more than 230,000 and that is bounded by the Mississippi

5 River ("the first race track"), or at a facility operated

6 by an inter-track wagering licensee or inter-track

7 wagering location licensee that derives its license from

8 the organization licensee that operates the first race

9 track, on races conducted at the first race track or on

10 races conducted at another Illinois race track and

11 simultaneously televised to the first race track or to a

12 facility operated by an inter-track wagering licensee or

13 inter-track wagering location licensee that derives its

14 license from the organization licensee that operates the

15 first race track, those moneys shall be allocated as

16 follows:

17 (A) That portion of all moneys wagered on

18 standardbred racing that is required under this Act to

19 be paid to purses shall be paid to purses for

20 standardbred races.

21 (B) That portion of all moneys wagered on

22 thoroughbred racing that is required under this Act to

23 be paid to purses shall be paid to purses for

24 thoroughbred races.

25 (11) (A) After payment of the privilege or pari-mutuel

26 tax, any other applicable taxes, and the costs and expenses

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1 in connection with the gathering, transmission, and

2 dissemination of all data necessary to the conduct of

3 inter-track wagering, the remainder of the monies retained

4 under either Section 26 or Section 26.2 of this Act by the

5 inter-track wagering licensee on inter-track wagering

6 shall be allocated with 50% to be split between the 2

7 participating licensees and 50% to purses, except that an

8 inter-track ~~intertrack~~wagering licensee that derives its

9 license from a track located in a county with a population

10 in excess of 230,000 and that borders the Mississippi River

11 shall not divide any remaining retention with the Illinois

12 organization licensee that provides the race or races, and

13 an inter-track ~~intertrack~~ wagering licensee that accepts

14 wagers on races conducted by an organization licensee that

15 conducts a race meet in a county with a population in

16 excess of 230,000 and that borders the Mississippi River

17 shall not divide any remaining retention with that

18 organization licensee.

19 (B) From the sums permitted to be retained pursuant to

20 this Act each inter-track wagering location licensee shall

21 pay (i) the privilege or pari-mutuel tax to the State; (ii)

22 4.75% of the pari-mutuel handle oninter-track ~~intertrack~~

23 wagering at such location on races as purses, except that

24 an inter-track ~~intertrack~~ wagering location licensee that

25 derives its license from a track located in a county with a

26 population in excess of 230,000 and that borders the

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1 Mississippi River shall retain all purse moneys for its own

2 purse account consistent with distribution set forth in

3 this subsection (h), and inter-track~~intertrack~~ wagering

4 location licensees that accept wagers on races conducted by

5 an organization licensee located in a county with a

6 population in excess of 230,000 and that borders the

7 Mississippi River shall distribute all purse moneys to

8 purses at the operating host track; (iii) until January 1,

9 2000, except as provided in subsection (g) of Section 27 of

10 this Act, 1% of the pari-mutuel handle wagered on

11 inter-track wagering and simulcast wagering at each

12 inter-track wagering location licensee facility to the

13 Horse Racing Tax Allocation Fund, provided that, to the

14 extent the total amount collected and distributed to the

15 Horse Racing Tax Allocation Fund under this subsection (h)

16 during any calendar year exceeds the amount collected and

17 distributed to the Horse Racing Tax Allocation Fund during

18 calendar year 1994, that excess amount shall be

19 redistributed (I) to all inter-track wagering location

20 licensees, based on each licensee's pro-rata share of the

21 total handle from inter-track wagering and simulcast

22 wagering for all inter-track wagering location licensees

23 during the calendar year in which this provision is

24 applicable; then (II) the amounts redistributed to each

25 inter-track wagering location licensee as described in

26 subpart (I) shall be further redistributed as provided in

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1 subparagraph (B) of paragraph (5) of subsection (g) of this

2 Section 26 provided first, that the shares of those

3 amounts, which are to be redistributed to the host track or

4 to purses at the host track under subparagraph (B) of

5 paragraph (5) of subsection (g) of this Section 26 shall be

6 redistributed based on each host track's pro rata share of

7 the total inter-track wagering and simulcast wagering

8 handle at all host tracks during the calendar year in

9 question, and second, that any amounts redistributed as

10 described in part (I) to an inter-track wagering location

11 licensee that accepts wagers on races conducted by an

12 organization licensee that conducts a race meet in a county

13 with a population in excess of 230,000 and that borders the

14 Mississippi River shall be further redistributed as

15 provided in subparagraphs (D) and (E) of paragraph (7) of

16 subsection (g) of this Section 26, with the portion of that

17 further redistribution allocated to purses at that

18 organization licensee to be divided between standardbred

19 purses and thoroughbred purses based on the amounts

20 otherwise allocated to purses at that organization

21 licensee during the calendar year in question; and (iv) 8%

22 of the pari-mutuel handle on inter-track wagering wagered

23 at such location to satisfy all costs and expenses of

24 conducting its wagering. The remainder of the monies

25 retained by the inter-track wagering location licensee

26 shall be allocated 40% to the location licensee and 60% to

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1 the organization licensee which provides the Illinois

2 races to the location, except that an inter-track

3 ~~intertrack~~wagering location licensee that derives its

4 license from a track located in a county with a population

5 in excess of 230,000 and that borders the Mississippi River

6 shall not divide any remaining retention with the

7 organization licensee that provides the race or races and

8 an inter-track ~~intertrack~~ wagering location licensee that

9 accepts wagers on races conducted by an organization

10 licensee that conducts a race meet in a county with a

11 population in excess of 230,000 and that borders the

12 Mississippi River shall not divide any remaining retention

13 with the organization licensee. Notwithstanding the

14 provisions of clauses (ii) and (iv) of this paragraph, in

15 the case of the additional inter-track wagering location

16 licenses authorized under paragraph (1) of this subsection

17 (h) by Public Act 87-110 ~~this amendatory Act of 1991~~, those

18 licensees shall pay the following amounts as purses: during

19 the first 12 months the licensee is in operation, 5.25% of

20 the pari-mutuel handle wagered at the location on races;

21 during the second 12 months, 5.25%; during the third 12

22 months, 5.75%; during the fourth 12 months, 6.25%; and

23 during the fifth 12 months and thereafter, 6.75%. The

24 following amounts shall be retained by the licensee to

25 satisfy all costs and expenses of conducting its wagering:

26 during the first 12 months the licensee is in operation,

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1 8.25% of the pari-mutuel handle wagered at the location;

2 during the second 12 months, 8.25%; during the third 12

3 months, 7.75%; during the fourth 12 months, 7.25%; and

4 during the fifth 12 months and thereafter, 6.75%. For

5 additional inter-track ~~intertrack~~ wagering location

6 licensees authorized under Public Act 89-16 ~~this~~

7 ~~amendatory Act of 1995~~, purses for the first 12 months the

8 licensee is in operation shall be 5.75% of the pari-mutuel

9 wagered at the location, purses for the second 12 months

10 the licensee is in operation shall be 6.25%, and purses

11 thereafter shall be 6.75%. For additional inter-track

12 ~~intertrack~~location licensees authorized underPublic Act

13 89-16~~this amendatory Act of 1995~~, the licensee shall be

14 allowed to retain to satisfy all costs and expenses: 7.75%

15 of the pari-mutuel handle wagered at the location during

16 its first 12 months of operation, 7.25% during its second

17 12 months of operation, and 6.75% thereafter.

18 (C) There is hereby created the Horse Racing Tax

19 Allocation Fund which shall remain in existence until

20 December 31, 1999. Moneys remaining in the Fund after

21 December 31, 1999 shall be paid into the General Revenue

22 Fund. Until January 1, 2000, all monies paid into the Horse

23 Racing Tax Allocation Fund pursuant to this paragraph (11)

24 by inter-track wagering location licensees located in park

25 districts of 500,000 population or less, or in a

26 municipality that is not included within any park district

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1 but is included within a conservation district and is the

2 county seat of a county that (i) is contiguous to the state

3 of Indiana and (ii) has a 1990 population of 88,257

4 according to the United States Bureau of the Census, and

5 operating on May 1, 1994 shall be allocated by

6 appropriation as follows:

7 Two-sevenths to the Department of Agriculture.

8 Fifty percent of this two-sevenths shall be used to

9 promote the Illinois horse racing and breeding

10 industry, and shall be distributed by the Department of

11 Agriculture upon the advice of a 9-member committee

12 appointed by the Governor consisting of the following

13 members: the Director of Agriculture, who shall serve

14 as chairman; 2 representatives of organization

15 licensees conducting thoroughbred race meetings in

16 this State, recommended by those licensees; 2

17 representatives of organization licensees conducting

18 standardbred race meetings in this State, recommended

19 by those licensees; a representative of the Illinois

20 Thoroughbred Breeders and Owners Foundation,

21 recommended by that Foundation; a representative of

22 the Illinois Standardbred Owners and Breeders

23 Association, recommended by that Association; a

24 representative of the Horsemen's Benevolent and

25 Protective Association or any successor organization

26 thereto established in Illinois comprised of the

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1 largest number of owners and trainers, recommended by

2 that Association or that successor organization; and a

3 representative of the Illinois Harness Horsemen's

4 Association, recommended by that Association.

5 Committee members shall serve for terms of 2 years,

6 commencing January 1 of each even-numbered year. If a

7 representative of any of the above-named entities has

8 not been recommended by January 1 of any even-numbered

9 year, the Governor shall appoint a committee member to

10 fill that position. Committee members shall receive no

11 compensation for their services as members but shall be

12 reimbursed for all actual and necessary expenses and

13 disbursements incurred in the performance of their

14 official duties. The remaining 50% of this

15 two-sevenths shall be distributed to county fairs for

16 premiums and rehabilitation as set forth in the

17 Agricultural Fair Act;

18 Four-sevenths to park districts or municipalities

19 that do not have a park district of 500,000 population

20 or less for museum purposes (if an inter-track wagering

21 location licensee is located in such a park district)

22 or to conservation districts for museum purposes (if an

23 inter-track wagering location licensee is located in a

24 municipality that is not included within any park

25 district but is included within a conservation

26 district and is the county seat of a county that (i) is

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1 contiguous to the state of Indiana and (ii) has a 1990

2 population of 88,257 according to the United States

3 Bureau of the Census, except that if the conservation

4 district does not maintain a museum, the monies shall

5 be allocated equally between the county and the

6 municipality in which the inter-track wagering

7 location licensee is located for general purposes) or

8 to a municipal recreation board for park purposes (if

9 an inter-track wagering location licensee is located

10 in a municipality that is not included within any park

11 district and park maintenance is the function of the

12 municipal recreation board and the municipality has a

13 1990 population of 9,302 according to the United States

14 Bureau of the Census); provided that the monies are

15 distributed to each park district or conservation

16 district or municipality that does not have a park

17 district in an amount equal to four-sevenths of the

18 amount collected by each inter-track wagering location

19 licensee within the park district or conservation

20 district or municipality for the Fund. Monies that were

21 paid into the Horse Racing Tax Allocation Fund before

22 August 9, 1991 (the effective date ofPublic Act

23 87-110) ~~this amendatory Act of 1991~~ by an inter-track

24 wagering location licensee located in a municipality

25 that is not included within any park district but is

26 included within a conservation district as provided in

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1 this paragraph shall, as soon as practicable after

2 August 9, 1991 (the effective date of Public Act

3 87-110) ~~this amendatory Act of 1991~~, be allocated and

4 paid to that conservation district as provided in this

5 paragraph. Any park district or municipality not

6 maintaining a museum may deposit the monies in the

7 corporate fund of the park district or municipality

8 where the inter-track wagering location is located, to

9 be used for general purposes; and

10 One-seventh to the Agricultural Premium Fund to be

11 used for distribution to agricultural home economics

12 extension councils in accordance with "An Act in

13 relation to additional support and finances for the

14 Agricultural and Home Economic Extension Councils in

15 the several counties of this State and making an

16 appropriation therefor", approved July 24, 1967.

17 Until January 1, 2000, all other monies paid into the

18 Horse Racing Tax Allocation Fund pursuant to this paragraph

19 (11) shall be allocated by appropriation as follows:

20 Two-sevenths to the Department of Agriculture.

21 Fifty percent of this two-sevenths shall be used to

22 promote the Illinois horse racing and breeding

23 industry, and shall be distributed by the Department of

24 Agriculture upon the advice of a 9-member committee

25 appointed by the Governor consisting of the following

26 members: the Director of Agriculture, who shall serve

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1 as chairman; 2 representatives of organization

2 licensees conducting thoroughbred race meetings in

3 this State, recommended by those licensees; 2

4 representatives of organization licensees conducting

5 standardbred race meetings in this State, recommended

6 by those licensees; a representative of the Illinois

7 Thoroughbred Breeders and Owners Foundation,

8 recommended by that Foundation; a representative of

9 the Illinois Standardbred Owners and Breeders

10 Association, recommended by that Association; a

11 representative of the Horsemen's Benevolent and

12 Protective Association or any successor organization

13 thereto established in Illinois comprised of the

14 largest number of owners and trainers, recommended by

15 that Association or that successor organization; and a

16 representative of the Illinois Harness Horsemen's

17 Association, recommended by that Association.

18 Committee members shall serve for terms of 2 years,

19 commencing January 1 of each even-numbered year. If a

20 representative of any of the above-named entities has

21 not been recommended by January 1 of any even-numbered

22 year, the Governor shall appoint a committee member to

23 fill that position. Committee members shall receive no

24 compensation for their services as members but shall be

25 reimbursed for all actual and necessary expenses and

26 disbursements incurred in the performance of their

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1 official duties. The remaining 50% of this

2 two-sevenths shall be distributed to county fairs for

3 premiums and rehabilitation as set forth in the

4 Agricultural Fair Act;

5 Four-sevenths to museums and aquariums located in

6 park districts of over 500,000 population; provided

7 that the monies are distributed in accordance with the

8 previous year's distribution of the maintenance tax

9 for such museums and aquariums as provided in Section 2

10 of the Park District Aquarium and Museum Act; and

11 One-seventh to the Agricultural Premium Fund to be

12 used for distribution to agricultural home economics

13 extension councils in accordance with "An Act in

14 relation to additional support and finances for the

15 Agricultural and Home Economic Extension Councils in

16 the several counties of this State and making an

17 appropriation therefor", approved July 24, 1967. This

18 subparagraph (C) shall be inoperative and of no force

19 and effect on and after January 1, 2000.

20 (D) Except as provided in paragraph (11) of this

21 subsection (h), with respect to purse allocation from

22 inter-track ~~intertrack~~wagering, the monies so

23 retained shall be divided as follows:

24 (i) If the inter-track wagering licensee,

25 except an inter-track ~~intertrack~~wagering licensee

26 that derives its license from an organization

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1 licensee located in a county with a population in

2 excess of 230,000 and bounded by the Mississippi

3 River, is not conducting its own race meeting

4 during the same dates, then the entire purse

5 allocation shall be to purses at the track where

6 the races wagered on are being conducted.

7 (ii) If the inter-track wagering licensee,

8 except an inter-track ~~intertrack~~wagering licensee

9 that derives its license from an organization

10 licensee located in a county with a population in

11 excess of 230,000 and bounded by the Mississippi

12 River, is also conducting its own race meeting

13 during the same dates, then the purse allocation

14 shall be as follows: 50% to purses at the track

15 where the races wagered on are being conducted; 50%

16 to purses at the track where the inter-track

17 wagering licensee is accepting such wagers.

18 (iii) If the inter-track wagering is being

19 conducted by an inter-track wagering location

20 licensee, except an inter-track ~~intertrack~~

21 wagering location licensee that derives its

22 license from an organization licensee located in a

23 county with a population in excess of 230,000 and

24 bounded by the Mississippi River, the entire purse

25 allocation for Illinois races shall be to purses at

26 the track where the race meeting being wagered on

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1 is being held.

2 (12) The Board shall have all powers necessary and

3 proper to fully supervise and control the conduct of

4 inter-track wagering and simulcast wagering by inter-track

5 wagering licensees and inter-track wagering location

6 licensees, including, but not limited to the following:

7 (A) The Board is vested with power to promulgate

8 reasonable rules and regulations for the purpose of

9 administering the conduct of this wagering and to

10 prescribe reasonable rules, regulations and conditions

11 under which such wagering shall be held and conducted.

12 Such rules and regulations are to provide for the

13 prevention of practices detrimental to the public

14 interest and for the best interests of said wagering

15 and to impose penalties for violations thereof.

16 (B) The Board, and any person or persons to whom it

17 delegates this power, is vested with the power to enter

18 the facilities of any licensee to determine whether

19 there has been compliance with the provisions of this

20 Act and the rules and regulations relating to the

21 conduct of such wagering.

22 (C) The Board, and any person or persons to whom it

23 delegates this power, may eject or exclude from any

24 licensee's facilities, any person whose conduct or

25 reputation is such that his presence on such premises

26 may, in the opinion of the Board, call into the

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1 question the honesty and integrity of, or interfere

2 with the orderly conduct of such wagering; provided,

3 however, that no person shall be excluded or ejected

4 from such premises solely on the grounds of race,

5 color, creed, national origin, ancestry, or sex.

6 (D) (Blank).

7 (E) The Board is vested with the power to appoint

8 delegates to execute any of the powers granted to it

9 under this Section for the purpose of administering

10 this wagering and any rules and regulations

11 promulgated in accordance with this Act.

12 (F) The Board shall name and appoint a State

13 director of this wagering who shall be a representative

14 of the Board and whose duty it shall be to supervise

15 the conduct of inter-track wagering as may be provided

16 for by the rules and regulations of the Board; such

17 rules and regulation shall specify the method of

18 appointment and the Director's powers, authority and

19 duties.

20 (G) The Board is vested with the power to impose

21 civil penalties of up to $5,000 against individuals and

22 up to $10,000 against licensees for each violation of

23 any provision of this Act relating to the conduct of

24 this wagering, any rules adopted by the Board, any

25 order of the Board or any other action which in the

26 Board's discretion, is a detriment or impediment to

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1 such wagering.

2 (13) The Department of Agriculture may enter into

3 agreements with licensees authorizing such licensees to

4 conduct inter-track wagering on races to be held at the

5 licensed race meetings conducted by the Department of

6 Agriculture. Such agreement shall specify the races of the

7 Department of Agriculture's licensed race meeting upon

8 which the licensees will conduct wagering. In the event

9 that a licensee conducts inter-track pari-mutuel wagering

10 on races from the Illinois State Fair or DuQuoin State Fair

11 which are in addition to the licensee's previously approved

12 racing program, those races shall be considered a separate

13 racing day for the purpose of determining the daily handle

14 and computing the privilege or pari-mutuel tax on that

15 daily handle as provided in Sections 27 and 27.1. Such

16 agreements shall be approved by the Board before such

17 wagering may be conducted. In determining whether to grant

18 approval, the Board shall give due consideration to the

19 best interests of the public and of horse racing. The

20 provisions of paragraphs (1), (8), (8.1), and (8.2) of

21 subsection (h) of this Section which are not specified in

22 this paragraph (13) shall not apply to licensed race

23 meetings conducted by the Department of Agriculture at the

24 Illinois State Fair in Sangamon County or the DuQuoin State

25 Fair in Perry County, or to any wagering conducted on those

26 race meetings.

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1 (14) An inter-track wagering location license

2 authorized by the Board in 2016 that is owned and operated

3 by a race track in Rock Island County shall be transferred

4 to a commonly owned race track in Cook County on August 12,

5 2016 (the effective date of Public Act 99-757) ~~this~~

6 ~~amendatory Act of the 99th General Assembly~~. The licensee

7 shall retain its status in relation to purse distribution

8 under paragraph (11) of this subsection (h) following the

9 transfer to the new entity. The pari-mutuel tax credit

10 under Section 32.1 shall not be applied toward any

11 pari-mutuel tax obligation of the inter-track wagering

12 location licensee of the license that is transferred under

13 this paragraph (14).

14 (i) Notwithstanding the other provisions of this Act, the

15 conduct of wagering at wagering facilities is authorized on all

16 days, except as limited by subsection (b) of Section 19 of this

17 Act.

18 (Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968,

19 eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;

20 revised 9-14-16.)

21 (230 ILCS 5/27) (from Ch. 8, par. 37-27)

22 Sec. 27. (a) In addition to the organization license fee

23 provided by this Act, until January 1, 2000, a graduated

24 privilege tax is hereby imposed for conducting the pari-mutuel

25 system of wagering permitted under this Act. Until January 1,

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1 2000, except as provided in subsection (g) of Section 27 of

2 this Act, all of the breakage of each racing day held by any

3 licensee in the State shall be paid to the State. Until January

4 1, 2000, such daily graduated privilege tax shall be paid by

5 the licensee from the amount permitted to be retained under

6 this Act. Until January 1, 2000, each day's graduated privilege

7 tax, breakage, and Horse Racing Tax Allocation funds shall be

8 remitted to the Department of Revenue within 48 hours after the

9 close of the racing day upon which it is assessed or within

10 such other time as the Board prescribes. The privilege tax

11 hereby imposed, until January 1, 2000, shall be a flat tax at

12 the rate of 2% of the daily pari-mutuel handle except as

13 provided in Section 27.1.

14 In addition, every organization licensee, except as

15 provided in Section 27.1 of this Act, which conducts multiple

16 wagering shall pay, until January 1, 2000, as a privilege tax

17 on multiple wagers an amount equal to 1.25% of all moneys

18 wagered each day on such multiple wagers, plus an additional

19 amount equal to 3.5% of the amount wagered each day on any

20 other multiple wager which involves a single betting interest

21 on 3 or more horses. The licensee shall remit the amount of

22 such taxes to the Department of Revenue within 48 hours after

23 the close of the racing day on which it is assessed or within

24 such other time as the Board prescribes.

25 This subsection (a) shall be inoperative and of no force

26 and effect on and after January 1, 2000.

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1 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax

2 at the rate of 1.5% of the daily pari-mutuel handle is imposed

3 at all pari-mutuel wagering facilities and on advance deposit

4 wagering from a location other than a wagering facility, except

5 as otherwise provided for in this subsection (a-5). In addition

6 to the pari-mutuel tax imposed on advance deposit wagering

7 pursuant to this subsection (a-5), beginning on August 24, 2012

8 (the effective date of Public Act 97-1060) and through December

9 31, 2018, an additional pari-mutuel tax at the rate of 0.25%

10 shall be imposed on advance deposit wagering. Until August 25,

11 2012, the additional 0.25% pari-mutuel tax imposed on advance

12 deposit wagering by Public Act 96-972 shall be deposited into

13 the Quarter Horse Purse Fund, which shall be created as a

14 non-appropriated trust fund administered by the Board for

15 grants to thoroughbred organization licensees for payment of

16 purses for quarter horse races conducted by the organization

17 licensee. Beginning on August 26, 2012, the additional 0.25%

18 pari-mutuel tax imposed on advance deposit wagering shall be

19 deposited into the Standardbred Purse Fund, which shall be

20 created as a non-appropriated trust fund administered by the

21 Board, for grants to the standardbred organization licensees

22 for payment of purses for standardbred horse races conducted by

23 the organization licensee. Thoroughbred organization licensees

24 may petition the Board to conduct quarter horse racing and

25 receive purse grants from the Quarter Horse Purse Fund. The

26 Board shall have complete discretion in distributing the

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1 Quarter Horse Purse Fund to the petitioning organization

2 licensees. Beginning on July 26, 2010 (the effective date of

3 Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of

4 the daily pari-mutuel handle is imposed at a pari-mutuel

5 facility whose license is derived from a track located in a

6 county that borders the Mississippi River and conducted live

7 racing in the previous year. The pari-mutuel tax imposed by

8 this subsection (a-5) shall be remitted to the Department of

9 Revenue within 48 hours after the close of the racing day upon

10 which it is assessed or within such other time as the Board

11 prescribes.

12 (a-10) Beginning on the date when an organization licensee

13 begins conducting electronic gaming pursuant to an electronic

14 gaming license, the following pari-mutuel tax is imposed upon

15 an organization licensee on Illinois races at the licensee's

16 race track:

17 1.5% of the pari-mutuel handle at or below the average

18 daily pari-mutuel handle for 2011.

19 2% of the pari-mutuel handle above the average daily

20 pari-mutuel handle for 2011 up to 125% of the average daily

21 pari-mutuel handle for 2011.

22 2.5% of the pari-mutuel handle 125% or more above the

23 average daily pari-mutuel handle for 2011 up to 150% of the

24 average daily pari-mutuel handle for 2011.

25 3% of the pari-mutuel handle 150% or more above the

26 average daily pari-mutuel handle for 2011 up to 175% of the

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1 average daily pari-mutuel handle for 2011.

2 3.5% of the pari-mutuel handle 175% or more above the

3 average daily pari-mutuel handle for 2011.

4 The pari-mutuel tax imposed by this subsection (a-10) shall

5 be remitted to the Board within 48 hours after the close of the

6 racing day upon which it is assessed or within such other time

7 as the Board prescribes.

8 (b) On or before December 31, 1999, in the event that any

9 organization licensee conducts 2 separate programs of races on

10 any day, each such program shall be considered a separate

11 racing day for purposes of determining the daily handle and

12 computing the privilege tax on such daily handle as provided in

13 subsection (a) of this Section.

14 (c) Licensees shall at all times keep accurate books and

15 records of all monies wagered on each day of a race meeting and

16 of the taxes paid to the Department of Revenue under the

17 provisions of this Section. The Board or its duly authorized

18 representative or representatives shall at all reasonable

19 times have access to such records for the purpose of examining

20 and checking the same and ascertaining whether the proper

21 amount of taxes is being paid as provided. The Board shall

22 require verified reports and a statement of the total of all

23 monies wagered daily at each wagering facility upon which the

24 taxes are assessed and may prescribe forms upon which such

25 reports and statement shall be made.

26 (d) Before a license is issued or re-issued, the licensee

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1 shall post a bond in the sum of $500,000 to the State of

2 Illinois. The bond shall be used to guarantee that the licensee

3 faithfully makes the payments, keeps the books and records and

4 makes reports, and conducts games of chance in conformity with

5 this Act and the rules adopted by the Board. The bond shall not

6 be canceled by a surety on less than 30 days' notice in writing

7 to the Board. If a bond is canceled and the licensee fails to

8 file a new bond with the Board in the required amount on or

9 before the effective date of cancellation, the licensee's

10 license shall be revoked. The total and aggregate liability of

11 the surety on the bond is limited to the amount specified in

12 the bond. ~~Any licensee failing or refusing to pay the amount of~~

13 ~~any tax due under this Section shall be guilty of a business~~

14 ~~offense and upon conviction shall be fined not more than $5,000~~

15 ~~in addition to the amount found due as tax under this Section.~~

16 ~~Each day's violation shall constitute a separate offense. All~~

17 ~~fines paid into Court by a licensee hereunder shall be~~

18 ~~transmitted and paid over by the Clerk of the Court to the~~

19 ~~Board.~~

20 (e) No other license fee, privilege tax, excise tax, or

21 racing fee, except as provided in this Act, shall be assessed

22 or collected from any such licensee by the State.

23 (f) No other license fee, privilege tax, excise tax or

24 racing fee shall be assessed or collected from any such

25 licensee by units of local government except as provided in

26 paragraph 10.1 of subsection (h) and subsection (f) of Section

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1 26 of this Act. However, any municipality that has a Board

2 licensed horse race meeting at a race track wholly within its

3 corporate boundaries or a township that has a Board licensed

4 horse race meeting at a race track wholly within the

5 unincorporated area of the township may charge a local

6 amusement tax not to exceed 10� per admission to such horse

7 race meeting by the enactment of an ordinance. However, any

8 municipality or county that has a Board licensed inter-track

9 wagering location facility wholly within its corporate

10 boundaries may each impose an admission fee not to exceed $1.00

11 per admission to such inter-track wagering location facility,

12 so that a total of not more than $2.00 per admission may be

13 imposed. Except as provided in subparagraph (g) of Section 27

14 of this Act, the inter-track wagering location licensee shall

15 collect any and all such fees and within 48 hours remit the

16 fees to the Board, which shall, pursuant to rule, cause the

17 fees to be distributed to the county or municipality.

18 (g) Notwithstanding any provision in this Act to the

19 contrary, if in any calendar year the total taxes and feesfrom

20 wagering on live racing and from inter-track wagering required

21 to be collected from licensees and distributed under this Act

22 to all State and local governmental authorities exceeds the

23 amount of such taxes and fees distributed to each State and

24 local governmental authority to which each State and local

25 governmental authority was entitled under this Act for calendar

26 year 1994, then the first $11 million of that excess amount

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1 shall be allocated at the earliest possible date for

2 distribution as purse money for the succeeding calendar year.

3 Upon reaching the 1994 level, and until the excess amount of

4 taxes and fees exceeds $11 million, the Board shall direct all

5 licensees to cease paying the subject taxes and fees and the

6 Board shall direct all licensees to allocate any such excess

7 amount for purses as follows:

8 (i) the excess amount shall be initially divided

9 between thoroughbred and standardbred purses based on the

10 thoroughbred's and standardbred's respective percentages

11 of total Illinois live wagering in calendar year 1994;

12 (ii) each thoroughbred and standardbred organization

13 licensee issued an organization licensee in that

14 succeeding allocation year shall be allocated an amount

15 equal to the product of its percentage of total Illinois

16 live thoroughbred or standardbred wagering in calendar

17 year 1994 (the total to be determined based on the sum of

18 1994 on-track wagering for all organization licensees

19 issued organization licenses in both the allocation year

20 and the preceding year) multiplied by the total amount

21 allocated for standardbred or thoroughbred purses,

22 provided that the first $1,500,000 of the amount allocated

23 to standardbred purses under item (i) shall be allocated to

24 the Department of Agriculture to be expended with the

25 assistance and advice of the Illinois Standardbred

26 Breeders Funds Advisory Board for the purposes listed in

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1 subsection (g) of Section 31 of this Act, before the amount

2 allocated to standardbred purses under item (i) is

3 allocated to standardbred organization licensees in the

4 succeeding allocation year.

5 To the extent the excess amount of taxes and fees to be

6 collected and distributed to State and local governmental

7 authorities exceeds $11 million, that excess amount shall be

8 collected and distributed to State and local authorities as

9 provided for under this Act.

10 (Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,

11 eff. 8-12-16.)

12 (230 ILCS 5/30) (from Ch. 8, par. 37-30)

13 Sec. 30. (a) The General Assembly declares that it is the

14 policy of this State to encourage the breeding of thoroughbred

15 horses in this State and the ownership of such horses by

16 residents of this State in order to provide for: sufficient

17 numbers of high quality thoroughbred horses to participate in

18 thoroughbred racing meetings in this State, and to establish

19 and preserve the agricultural and commercial benefits of such

20 breeding and racing industries to the State of Illinois. It is

21 the intent of the General Assembly to further this policy by

22 the provisions of this Act.

23 (b) Each organization licensee conducting a thoroughbred

24 racing meeting pursuant to this Act shall provide at least two

25 races each day limited to Illinois conceived and foaled horses

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1 or Illinois foaled horses or both. A minimum of 6 races shall

2 be conducted each week limited to Illinois conceived and foaled

3 or Illinois foaled horses or both. No horses shall be permitted

4 to start in such races unless duly registered under the rules

5 of the Department of Agriculture.

6 (c) Conditions of races under subsection (b) shall be

7 commensurate with past performance, quality, and class of

8 Illinois conceived and foaled and Illinois foaled horses

9 available. If, however, sufficient competition cannot be had

10 among horses of that class on any day, the races may, with

11 consent of the Board, be eliminated for that day and substitute

12 races provided.

13 (d) There is hereby created a special fund of the State

14 Treasury to be known as the Illinois Thoroughbred Breeders

15 Fund.

16 Beginning on the effective date of this amendatory Act of

17 the 100th General Assembly, the Illinois Thoroughbred Breeders

18 Fund shall become a non-appropriated trust fund held separately

19 from State moneys. Expenditures from this Fund shall no longer

20 be subject to appropriation.

21 Except as provided in subsection (g) of Section 27 of this

22 Act, 8.5% of all the monies received by the State as privilege

23 taxes on Thoroughbred racing meetings shall be paid into the

24 Illinois Thoroughbred Breeders Fund.

25 Notwithstanding any provision of law to the contrary,

26 amounts deposited into the Illinois Thoroughbred Breeders Fund

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1 from revenues generated by electronic gaming after the

2 effective date of this amendatory Act of the 100th General

3 Assembly shall be in addition to tax and fee amounts paid under

4 this Section for calendar year 2017 and thereafter.

5 (e) The Illinois Thoroughbred Breeders Fund shall be

6 administered by the Department of Agriculture with the advice

7 and assistance of the Advisory Board created in subsection (f)

8 of this Section.

9 (f) The Illinois Thoroughbred Breeders Fund Advisory Board

10 shall consist of the Director of the Department of Agriculture,

11 who shall serve as Chairman; a member of the Illinois Racing

12 Board, designated by it; 2 representatives of the organization

13 licensees conducting thoroughbred racing meetings, recommended

14 by them; 2 representatives of the Illinois Thoroughbred

15 Breeders and Owners Foundation, recommended by it; one

16 representative ~~and 2 representatives~~ of the Horsemen's

17 Benevolent Protective Association; and one representative from

18 the Illinois Thoroughbred Horsemen's Association ~~or any~~

19 ~~successor organization established in Illinois comprised of~~

20 ~~the largest number of owners and trainers, recommended by it,~~

21 ~~with one representative of the Horsemen's Benevolent and~~

22 ~~Protective Association to come from its Illinois Division, and~~

23 ~~one from its Chicago Division~~. Advisory Board members shall

24 serve for 2 years commencing January 1 of each odd numbered

25 year. If representatives of the organization licensees

26 conducting thoroughbred racing meetings, the Illinois

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1 Thoroughbred Breeders and Owners Foundation,~~and~~ the

2 Horsemen's Benevolent Protection Association, and the Illinois

3 Thoroughbred Horsemen's Associationhave not been recommended

4 by January 1, of each odd numbered year, the Director of the

5 Department of Agriculture shall make an appointment for the

6 organization failing to so recommend a member of the Advisory

7 Board. Advisory Board members shall receive no compensation for

8 their services as members but shall be reimbursed for all

9 actual and necessary expenses and disbursements incurred in the

10 execution of their official duties.

11 (g) ~~No monies shall be expended from the Illinois~~

12 ~~Thoroughbred Breeders Fund except as appropriated by the~~

13 ~~General Assembly.~~ Monies expended~~appropriated~~ from the

14 Illinois Thoroughbred Breeders Fund shall be expended by the

15 Department of Agriculture, with the advice and assistance of

16 the Illinois Thoroughbred Breeders Fund Advisory Board, for the

17 following purposes only:

18 (1) To provide purse supplements to owners of horses

19 participating in races limited to Illinois conceived and

20 foaled and Illinois foaled horses. Any such purse

21 supplements shall not be included in and shall be paid in

22 addition to any purses, stakes, or breeders' awards offered

23 by each organization licensee as determined by agreement

24 between such organization licensee and an organization

25 representing the horsemen. No monies from the Illinois

26 Thoroughbred Breeders Fund shall be used to provide purse

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1 supplements for claiming races in which the minimum

2 claiming price is less than $7,500.

3 (2) To provide stakes and awards to be paid to the

4 owners of the winning horses in certain races limited to

5 Illinois conceived and foaled and Illinois foaled horses

6 designated as stakes races.

7 (2.5) To provide an award to the owner or owners of an

8 Illinois conceived and foaled or Illinois foaled horse that

9 wins a maiden special weight, an allowance, overnight

10 handicap race, or claiming race with claiming price of

11 $10,000 or more providing the race is not restricted to

12 Illinois conceived and foaled or Illinois foaled horses.

13 Awards shall also be provided to the owner or owners of

14 Illinois conceived and foaled and Illinois foaled horses

15 that place second or third in those races. To the extent

16 that additional moneys are required to pay the minimum

17 additional awards of 40% of the purse the horse earns for

18 placing first, second or third in those races for Illinois

19 foaled horses and of 60% of the purse the horse earns for

20 placing first, second or third in those races for Illinois

21 conceived and foaled horses, those moneys shall be provided

22 from the purse account at the track where earned.

23 (3) To provide stallion awards to the owner or owners

24 of any stallion that is duly registered with the Illinois

25 Thoroughbred Breeders Fund Program~~prior to the effective~~

26 ~~date of this amendatory Act of 1995~~whose duly registered

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1 Illinois conceived and foaled offspring wins a race

2 conducted at an Illinois thoroughbred racing meeting other

3 than a claiming race, provided that the stallion stood

4 service within Illinois at the time the offspring was

5 conceived and that the stallion did not stand for service

6 outside of Illinois at any time during the year in which

7 the offspring was conceived. ~~Such award shall not be paid~~

8 ~~to the owner or owners of an Illinois stallion that served~~

9 ~~outside this State at any time during the calendar year in~~

10 ~~which such race was conducted.~~

11 (4) To provide $75,000 annually for purses to be

12 distributed to county fairs that provide for the running of

13 races during each county fair exclusively for the

14 thoroughbreds conceived and foaled in Illinois. The

15 conditions of the races shall be developed by the county

16 fair association and reviewed by the Department with the

17 advice and assistance of the Illinois Thoroughbred

18 Breeders Fund Advisory Board. There shall be no wagering of

19 any kind on the running of Illinois conceived and foaled

20 races at county fairs.

21 (4.1) To provide purse money for an Illinois stallion

22 stakes program.

23 (5) No less than 90% ~~80%~~ of all monies appropriated

24 from the Illinois Thoroughbred Breeders Fund shall be

25 expended for the purposes in (1), (2), (2.5), (3), (4),

26 (4.1), and (5) as shown above.

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1 (6) To provide for educational programs regarding the

2 thoroughbred breeding industry.

3 (7) To provide for research programs concerning the

4 health, development and care of the thoroughbred horse.

5 (8) To provide for a scholarship and training program

6 for students of equine veterinary medicine.

7 (9) To provide for dissemination of public information

8 designed to promote the breeding of thoroughbred horses in

9 Illinois.

10 (10) To provide for all expenses incurred in the

11 administration of the Illinois Thoroughbred Breeders Fund.

12 (h) The Illinois Thoroughbred Breeders Fund is not subject

13 to administrative charges or chargebacks, including, but not

14 limited to, those authorized under Section 8h of the State

15 Finance Act. ~~Whenever the Governor finds that the amount in the~~

16 ~~Illinois Thoroughbred Breeders Fund is more than the total of~~

17 ~~the outstanding appropriations from such fund, the Governor~~

18 ~~shall notify the State Comptroller and the State Treasurer of~~

19 ~~such fact. The Comptroller and the State Treasurer, upon~~

20 ~~receipt of such notification, shall transfer such excess amount~~

21 ~~from the Illinois Thoroughbred Breeders Fund to the General~~

22 ~~Revenue Fund.~~

23 (i) A sum equal to 13% ~~12 1/2%~~ of the first prize money of

24 every purse won by an Illinois foaled or an Illinois conceived

25 and foaled horse in races not limited to Illinois foaled horses

26 or Illinois conceived and foaled horses, or both, shall be paid

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1 by the organization licensee conducting the horse race meeting.

2 Such sum shall be paid 50%from the organization licensee's

3 account and 50% from the purse account of the licensee ~~share of~~

4 ~~the money wagered~~as follows: 11 1/2% to the breeder of the

5 winning horse and 1 1/2% ~~1%~~ to the organization representing

6 thoroughbred breeders and owners whose representative serves

7 on the Illinois Thoroughbred Breeders Fund Advisory Board for

8 verifying the amounts of breeders' awards earned, assuring

9 their distribution in accordance with this Act, and servicing

10 and promoting the Illinois thoroughbred horse racing industry.

11 The organization representing thoroughbred breeders and owners

12 shall cause all expenditures of monies received under this

13 subsection (i) to be audited at least annually by a registered

14 public accountant. The organization shall file copies of each

15 annual audit with the Racing Board, the Clerk of the House of

16 Representatives and the Secretary of the Senate, and shall make

17 copies of each annual audit available to the public upon

18 request and upon payment of the reasonable cost of photocopying

19 the requested number of copies. Such payments shall not reduce

20 any award to the owner of the horse or reduce the taxes payable

21 under this Act. Upon completion of its racing meet, each

22 organization licensee shall deliver to the organization

23 representing thoroughbred breeders and owners whose

24 representative serves on the Illinois Thoroughbred Breeders

25 Fund Advisory Board a listing of all the Illinois foaled and

26 the Illinois conceived and foaled horses which won breeders'

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1 awards and the amount of such breeders' awards under this

2 subsection to verify accuracy of payments and assure proper

3 distribution of breeders' awards in accordance with the

4 provisions of this Act. Such payments shall be delivered by the

5 organization licensee within 30 days of the end of each race

6 meeting.

7 (j) A sum equal to 13% ~~12 1/2%~~ of the first prize money won

8 in each race limited to Illinois foaled horses or Illinois

9 conceived and foaled horses, or both, shall be paid in the

10 following manner by the organization licensee conducting the

11 horse race meeting, 50%from the organization licensee's

12 account and 50% from the purse account of the licensee ~~share of~~

13 ~~the money wagered~~: 11 1/2% to the breeders of the horses in

14 each such race which are the official first, second, third and

15 fourth finishers and 1 1/2% ~~1%~~ to the organization representing

16 thoroughbred breeders and owners whose representative serves

17 on the Illinois Thoroughbred Breeders Fund Advisory Board for

18 verifying the amounts of breeders' awards earned, assuring

19 their proper distribution in accordance with this Act, and

20 servicing and promoting the Illinois thoroughbred horse racing

21 industry. The organization representing thoroughbred breeders

22 and owners shall cause all expenditures of monies received

23 under this subsection (j) to be audited at least annually by a

24 registered public accountant. The organization shall file

25 copies of each annual audit with the Racing Board, the Clerk of

26 the House of Representatives and the Secretary of the Senate,

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1 and shall make copies of each annual audit available to the

2 public upon request and upon payment of the reasonable cost of

3 photocopying the requested number of copies.

4 The 11 1/2% paid to the breeders in accordance with this

5 subsection shall be distributed as follows:

6 (1) 60% of such sum shall be paid to the breeder of the

7 horse which finishes in the official first position;

8 (2) 20% of such sum shall be paid to the breeder of the

9 horse which finishes in the official second position;

10 (3) 15% of such sum shall be paid to the breeder of the

11 horse which finishes in the official third position; and

12 (4) 5% of such sum shall be paid to the breeder of the

13 horse which finishes in the official fourth position.

14 Such payments shall not reduce any award to the owners of a

15 horse or reduce the taxes payable under this Act. Upon

16 completion of its racing meet, each organization licensee shall

17 deliver to the organization representing thoroughbred breeders

18 and owners whose representative serves on the Illinois

19 Thoroughbred Breeders Fund Advisory Board a listing of all the

20 Illinois foaled and the Illinois conceived and foaled horses

21 which won breeders' awards and the amount of such breeders'

22 awards in accordance with the provisions of this Act. Such

23 payments shall be delivered by the organization licensee within

24 30 days of the end of each race meeting.

25 (k) The term "breeder", as used herein, means the owner of

26 the mare at the time the foal is dropped. An "Illinois foaled

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1 horse" is a foal dropped by a mare which enters this State on

2 or before December 1, in the year in which the horse is bred,

3 provided the mare remains continuously in this State until its

4 foal is born. An "Illinois foaled horse" also means a foal born

5 of a mare in the same year as the mare enters this State on or

6 before March 1, and remains in this State at least 30 days

7 after foaling, is bred back during the season of the foaling to

8 an Illinois Registered Stallion (unless a veterinarian

9 certifies that the mare should not be bred for health reasons),

10 and is not bred to a stallion standing in any other state

11 during the season of foaling. An "Illinois foaled horse" also

12 means a foal born in Illinois of a mare purchased at public

13 auction subsequent to the mare entering this Stateon or before

14 March 1 ~~prior to February 1~~of the foaling year providing the

15 mare is owned solely by one or more Illinois residents or an

16 Illinois entity that is entirely owned by one or more Illinois

17 residents.

18 (l) The Department of Agriculture shall, by rule, with the

19 advice and assistance of the Illinois Thoroughbred Breeders

20 Fund Advisory Board:

21 (1) Qualify stallions for Illinois breeding; such

22 stallions to stand for service within the State of Illinois

23 at the time of a foal's conception. Such stallion must not

24 stand for service at any place outside the State of

25 Illinois during the calendar year in which the foal is

26 conceived. The Department of Agriculture may assess and

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1 collect an application fee of up to $500 ~~fees~~for the

2 registration of Illinois-eligible stallions. All fees

3 collected are to be held in trust accounts for the purposes

4 set forth in this Act and in accordance with Section 205-15

5 of the Department of Agriculture Law ~~paid into the Illinois~~

6 ~~Thoroughbred Breeders Fund~~.

7 (2) Provide for the registration of Illinois conceived

8 and foaled horses and Illinois foaled horses. No such horse

9 shall compete in the races limited to Illinois conceived

10 and foaled horses or Illinois foaled horses or both unless

11 registered with the Department of Agriculture. The

12 Department of Agriculture may prescribe such forms as are

13 necessary to determine the eligibility of such horses. The

14 Department of Agriculture may assess and collect

15 application fees for the registration of Illinois-eligible

16 foals. All fees collected are to be held in trust accounts

17 for the purposes set forth in this Act and in accordance

18 with Section 205-15 of the Department of Agriculture Law

19 ~~paid into the Illinois Thoroughbred Breeders Fund~~. No

20 person shall knowingly prepare or cause preparation of an

21 application for registration of such foals containing

22 false information.

23 (m) The Department of Agriculture, with the advice and

24 assistance of the Illinois Thoroughbred Breeders Fund Advisory

25 Board, shall provide that certain races limited to Illinois

26 conceived and foaled and Illinois foaled horses be stakes races

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1 and determine the total amount of stakes and awards to be paid

2 to the owners of the winning horses in such races.

3 In determining the stakes races and the amount of awards

4 for such races, the Department of Agriculture shall consider

5 factors, including but not limited to, the amount of money

6 appropriated for the Illinois Thoroughbred Breeders Fund

7 program, organization licensees' contributions, availability

8 of stakes caliber horses as demonstrated by past performances,

9 whether the race can be coordinated into the proposed racing

10 dates within organization licensees' racing dates, opportunity

11 for colts and fillies and various age groups to race, public

12 wagering on such races, and the previous racing schedule.

13 (n) The Board and the organizational licensee shall notify

14 the Department of the conditions and minimum purses for races

15 limited to Illinois conceived and foaled and Illinois foaled

16 horses conducted for each organizational licensee conducting a

17 thoroughbred racing meeting. The Department of Agriculture

18 with the advice and assistance of the Illinois Thoroughbred

19 Breeders Fund Advisory Board may allocate monies for purse

20 supplements for such races. In determining whether to allocate

21 money and the amount, the Department of Agriculture shall

22 consider factors, including but not limited to, the amount of

23 money appropriated for the Illinois Thoroughbred Breeders Fund

24 program, the number of races that may occur, and the

25 organizational licensee's purse structure.

26 (o) (Blank).

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1 (Source: P.A. 98-692, eff. 7-1-14.)

2 (230 ILCS 5/30.5)

3 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.

4 (a) The General Assembly declares that it is the policy of

5 this State to encourage the breeding of racing quarter horses

6 in this State and the ownership of such horses by residents of

7 this State in order to provide for sufficient numbers of high

8 quality racing quarter horses in this State and to establish

9 and preserve the agricultural and commercial benefits of such

10 breeding and racing industries to the State of Illinois. It is

11 the intent of the General Assembly to further this policy by

12 the provisions of this Act.

13 (b) There is hereby created non-appropriated trust ~~a~~

14 ~~special~~ fund ~~in the State Treasury~~to be known as the Illinois

15 Racing Quarter Horse Breeders Fund, which is held separately

16 from State moneys. Except as provided in subsection (g) of

17 Section 27 of this Act, 8.5% of all the moneys received by the

18 State as pari-mutuel taxes on quarter horse racing shall be

19 paid into the Illinois Racing Quarter Horse Breeders Fund.The

20 Illinois Racing Quarter Horse Breeders Fund shall not be

21 subject to administrative charges or chargebacks, including,

22 but not limited to, those authorized under Section 8h of the

23 State Finance Act.

24 (c) The Illinois Racing Quarter Horse Breeders Fund shall

25 be administered by the Department of Agriculture with the

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1 advice and assistance of the Advisory Board created in

2 subsection (d) of this Section.

3 (d) The Illinois Racing Quarter Horse Breeders Fund

4 Advisory Board shall consist of the Director of the Department

5 of Agriculture, who shall serve as Chairman; a member of the

6 Illinois Racing Board, designated by it; one representative of

7 the organization licensees conducting pari-mutuel quarter

8 horse racing meetings, recommended by them; 2 representatives

9 of the Illinois Running Quarter Horse Association, recommended

10 by it; and the Superintendent of Fairs and Promotions from the

11 Department of Agriculture. Advisory Board members shall serve

12 for 2 years commencing January 1 of each odd numbered year. If

13 representatives have not been recommended by January 1 of each

14 odd numbered year, the Director of the Department of

15 Agriculture may make an appointment for the organization

16 failing to so recommend a member of the Advisory Board.

17 Advisory Board members shall receive no compensation for their

18 services as members but may be reimbursed for all actual and

19 necessary expenses and disbursements incurred in the execution

20 of their official duties.

21 (e) Moneys in ~~No moneys shall be expended from the Illinois~~

22 ~~Racing Quarter Horse Breeders Fund except as appropriated by~~

23 ~~the General Assembly. Moneys appropriated from~~ the Illinois

24 Racing Quarter Horse Breeders Fund shall be expended by the

25 Department of Agriculture, with the advice and assistance of

26 the Illinois Racing Quarter Horse Breeders Fund Advisory Board,

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1 for 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 Illinois Racing Quarter Horse Breeders Fund Advisory

24 Board.

25 (7) No less than 90% of all moneys appropriated from

26 the Illinois Racing Quarter Horse Breeders Fund shall be

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1 expended for the purposes in items (1), (2), (3), (4), and

2 (5) of this subsection (e).

3 (8) To provide for research programs concerning the

4 health, development, and care of racing quarter horses.

5 (9) To provide for dissemination of public information

6 designed to promote the breeding of racing quarter horses

7 in Illinois.

8 (10) To provide for expenses incurred in the

9 administration of the Illinois Racing Quarter Horse

10 Breeders Fund.

11 (f) The Department of Agriculture shall, by rule, with the

12 advice and assistance of the Illinois Racing Quarter Horse

13 Breeders Fund Advisory Board:

14 (1) Qualify stallions for Illinois breeding; such

15 stallions to stand for service within the State of

16 Illinois, at the time of a foal's conception. Such stallion

17 must not stand for service at any place outside the State

18 of Illinois during the calendar year in which the foal is

19 conceived. The Department of Agriculture may assess and

20 collect application fees for the registration of

21 Illinois-eligible stallions. All fees collected are to be

22 paid into the Illinois Racing Quarter Horse Breeders Fund.

23 (2) Provide for the registration of Illinois conceived

24 and foaled horses. No such horse shall compete in the races

25 limited to Illinois conceived and foaled horses unless it

26 is registered with the Department of Agriculture. The

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1 Department of Agriculture may prescribe such forms as are

2 necessary to determine the eligibility of such horses. The

3 Department of Agriculture may assess and collect

4 application fees for the registration of Illinois-eligible

5 foals. All fees collected are to be paid into the Illinois

6 Racing Quarter Horse Breeders Fund. No person shall

7 knowingly prepare or cause preparation of an application

8 for registration of such foals that contains false

9 information.

10 (g) The Department of Agriculture, with the advice and

11 assistance of the Illinois Racing Quarter Horse Breeders Fund

12 Advisory Board, shall provide that certain races limited to

13 Illinois conceived and foaled be stakes races and determine the

14 total amount of stakes and awards to be paid to the owners of

15 the winning horses in such races.

16 (Source: P.A. 98-463, eff. 8-16-13.)

17 (230 ILCS 5/31) (from Ch. 8, par. 37-31)

18 Sec. 31. (a) The General Assembly declares that it is the

19 policy of this State to encourage the breeding of standardbred

20 horses in this State and the ownership of such horses by

21 residents of this State in order to provide for: sufficient

22 numbers of high quality standardbred horses to participate in

23 harness racing meetings in this State, and to establish and

24 preserve the agricultural and commercial benefits of such

25 breeding and racing industries to the State of Illinois. It is

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1 the intent of the General Assembly to further this policy by

2 the provisions of this Section of this Act.

3 (b) Each organization licensee conducting a harness racing

4 meeting pursuant to this Act shall provide for at least two

5 races each race program limited to Illinois conceived and

6 foaled horses. A minimum of 6 races shall be conducted each

7 week limited to Illinois conceived and foaled horses. No horses

8 shall be permitted to start in such races unless duly

9 registered under the rules of the Department of Agriculture.

10 (b-5) Organization licensees, not including the Illinois

11 State Fair or the DuQuoin State Fair, shall provide stake races

12 and early closer races for Illinois conceived and foaled horses

13 so that purses distributed for such races shall be no less than

14 17% of total purses distributed for harness racing in that

15 calendar year in addition to any stakes payments and starting

16 fees contributed by horse owners.

17 (b-10) Each organization licensee conducting a harness

18 racing meeting pursuant to this Act shall provide an owner

19 award to be paid from the purse account equal to 25% of the

20 amount earned by Illinois conceived and foaled horses in races

21 that are not restricted to Illinois conceived and foaled

22 horses. The owner awards shall not be paid on races below the

23 $10,000 claiming class.

24 (c) Conditions of races under subsection (b) shall be

25 commensurate with past performance, quality and class of

26 Illinois conceived and foaled horses available. If, however,

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1 sufficient competition cannot be had among horses of that class

2 on any day, the races may, with consent of the Board, be

3 eliminated for that day and substitute races provided.

4 (d) There is hereby created a special fund of the State

5 Treasury to be known as the Illinois Standardbred Breeders

6 Fund.

7 During the calendar year 1981, and each year thereafter,

8 except as provided in subsection (g) of Section 27 of this Act,

9 eight and one-half per cent of all the monies received by the

10 State as privilege taxes on harness racing meetings shall be

11 paid into the Illinois Standardbred Breeders Fund.

12 (e) The Illinois Standardbred Breeders Fund shall be

13 administered by the Department of Agriculture with the

14 assistance and advice of the Advisory Board created in

15 subsection (f) of this Section.

16 (f) The Illinois Standardbred Breeders Fund Advisory Board

17 is hereby created. The Advisory Board shall consist of the

18 Director of the Department of Agriculture, who shall serve as

19 Chairman; the Superintendent of the Illinois State Fair; a

20 member of the Illinois Racing Board, designated by it; a

21 representative of the largest association of Illinois

22 standardbred owners and breeders, recommended by it; a

23 representative of a statewide association representing

24 agricultural fairs in Illinois, recommended by it, such

25 representative to be from a fair at which Illinois conceived

26 and foaled racing is conducted; a representative of the

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1 organization licensees conducting harness racing meetings,

2 recommended by them; a representative of the Breeder's

3 Committee of the association representing the largest number of

4 standardbred owners, breeders, trainers, caretakers, and

5 drivers, recommended by it; and a representative of the

6 association representing the largest number of standardbred

7 owners, breeders, trainers, caretakers, and drivers,

8 recommended by it. Advisory Board members shall serve for 2

9 years commencing January 1 of each odd numbered year. If

10 representatives of the largest association of Illinois

11 standardbred owners and breeders, a statewide association of

12 agricultural fairs in Illinois, the association representing

13 the largest number of standardbred owners, breeders, trainers,

14 caretakers, and drivers, a member of the Breeder's Committee of

15 the association representing the largest number of

16 standardbred owners, breeders, trainers, caretakers, and

17 drivers, and the organization licensees conducting harness

18 racing meetings have not been recommended by January 1 of each

19 odd numbered year, the Director of the Department of

20 Agriculture shall make an appointment for the organization

21 failing to so recommend a member of the Advisory Board.

22 Advisory Board members shall receive no compensation for their

23 services as members but shall be reimbursed for all actual and

24 necessary expenses and disbursements incurred in the execution

25 of their official duties.

26 (g) No monies shall be expended from the Illinois

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1 Standardbred Breeders Fund except as appropriated by the

2 General Assembly. Monies appropriated from the Illinois

3 Standardbred Breeders Fund shall be expended by the Department

4 of Agriculture, with the assistance and advice of the Illinois

5 Standardbred Breeders Fund Advisory Board for the following

6 purposes only:

7 1. To provide purses for races limited to Illinois

8 conceived and foaled horses at the State Fairand the

9 DuQuoin State Fair.

10 2. To provide purses for races limited to Illinois

11 conceived and foaled horses at county fairs.

12 3. To provide purse supplements for races limited to

13 Illinois conceived and foaled horses conducted by

14 associations conducting harness racing meetings.

15 4. No less than 75% of all monies in the Illinois

16 Standardbred Breeders Fund shall be expended for purses in

17 1, 2 and 3 as shown above.

18 5. In the discretion of the Department of Agriculture

19 to provide awards to harness breeders of Illinois conceived

20 and foaled horses which win races conducted by organization

21 licensees conducting harness racing meetings. A breeder is

22 the owner of a mare at the time of conception. No more than

23 10% of all monies appropriated from the Illinois

24 Standardbred Breeders Fund shall be expended for such

25 harness breeders awards. No more than 25% of the amount

26 expended for harness breeders awards shall be expended for

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1 expenses incurred in the administration of such harness

2 breeders awards.

3 6. To pay for the improvement of racing facilities

4 located at the State Fair and County fairs.

5 7. To pay the expenses incurred in the administration

6 of the Illinois Standardbred Breeders Fund.

7 8. To promote the sport of harness racing, including

8 grants up to a maximum of $7,500 per fair per year for

9 conducting pari-mutuel wagering during the advertised

10 dates of a county fair.

11 9. To pay up to $50,000 annually for the Department of

12 Agriculture to conduct drug testing at county fairs racing

13 standardbred horses.

14 10. To pay up to $100,000 annually for distribution to

15 Illinois county fairs to supplement premiums offered in

16 junior classes.

17 11. To pay up to $100,000 annually for division and

18 equal distribution to the animal sciences department of

19 each Illinois public university system engaged in equine

20 research and education on or before the effective date of

21 this amendatory Act of the 100th General Assembly for

22 equine research and education.

23 (h) (Blank) ~~Whenever the Governor finds that the amount in~~

24 ~~the Illinois Standardbred Breeders Fund is more than the total~~

25 ~~of the outstanding appropriations from such fund, the Governor~~

26 ~~shall notify the State Comptroller and the State Treasurer of~~

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1 ~~such fact. The Comptroller and the State Treasurer, upon~~

2 ~~receipt of such notification, shall transfer such excess amount~~

3 ~~from the Illinois Standardbred Breeders Fund to the General~~

4 ~~Revenue Fund~~.

5 (i) A sum equal to 13% ~~12 1/2%~~ of the first prize money of

6 the gross ~~every~~purse won by an Illinois conceived and foaled

7 horse shall be paid 50%by the organization licensee conducting

8 the horse race meeting to the breeder of such winning horse

9 from the organization licensee's account and 50% from the purse

10 account of the licensee ~~share of the money wagered~~. Such

11 payment shall not reduce any award to the owner of the horse or

12 reduce the taxes payable under this Act. Such payment shall be

13 delivered by the organization licensee at the end of each

14 quarter ~~race meeting~~.

15 (j) The Department of Agriculture shall, by rule, with the

16 assistance and advice of the Illinois Standardbred Breeders

17 Fund Advisory Board:

18 1. Qualify stallions for Illinois Standardbred

19 Breeders Fund breeding~~; such stallion shall be owned by a~~

20 ~~resident of the State of Illinois or by an Illinois~~

21 ~~corporation all of whose shareholders, directors, officers~~

22 ~~and incorporators are residents of the State of Illinois~~.

23 Such stallion shall stand for service at and within the

24 State of Illinois at the time of a foal's conception, and

25 such stallion must not stand for service at any place~~, nor~~

26 ~~may semen from such stallion be transported,~~outside the

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1 State of Illinois during that calendar year in which the

2 foal is conceived ~~and that the owner of the stallion was~~

3 ~~for the 12 months prior, a resident of Illinois~~. Foals

4 conceived outside the State of Illinois from shipped semen

5 from a stallion qualified for breeders' awards under this

6 Section are not eligible to participate in the Illinois

7 conceived and foaled program.~~The articles of agreement of~~

8 ~~any partnership, joint venture, limited partnership,~~

9 ~~syndicate, association or corporation and any bylaws and~~

10 ~~stock certificates must contain a restriction that~~

11 ~~provides that the ownership or transfer of interest by any~~

12 ~~one of the persons a party to the agreement can only be~~

13 ~~made to a person who qualifies as an Illinois resident.~~

14 2. Provide for the registration of Illinois conceived

15 and foaled horses and no such horse shall compete in the

16 races limited to Illinois conceived and foaled horses

17 unless registered with the Department of Agriculture. The

18 Department of Agriculture may prescribe such forms as may

19 be necessary to determine the eligibility of such horses.

20 No person shall knowingly prepare or cause preparation of

21 an application for registration of such foals containing

22 false information. A mare (dam) must be in the state at

23 least 180 ~~30~~days prior to foaling or remain in the State

24 at least 30 days at the time of foaling. Beginning with the

25 1996 breeding season and for foals of 1997 and thereafter,

26 a foal conceived in the State of Illinois by transported

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1 fresh semen may be eligible for Illinois conceived and

2 foaled registration provided all breeding and foaling

3 requirements are met. The stallion must be qualified for

4 Illinois Standardbred Breeders Fund breeding at the time of

5 conception and the mare must be inseminated within the

6 State of Illinois. The foal must be dropped in Illinois and

7 properly registered with the Department of Agriculture in

8 accordance with this Act.

9 3. Provide that at least a 5 day racing program shall

10 be conducted at the State Fair each year, which program

11 shall include at least the following races limited to

12 Illinois conceived and foaled horses: (a) a two year old

13 Trot and Pace, and Filly Division of each; (b) a three year

14 old Trot and Pace, and Filly Division of each; (c) an aged

15 Trot and Pace, and Mare Division of each.

16 4. Provide for the payment of nominating, sustaining

17 and starting fees for races promoting the sport of harness

18 racing and for the races to be conducted at the State Fair

19 as provided in subsection (j) 3 of this Section provided

20 that the nominating, sustaining and starting payment

21 required from an entrant shall not exceed 2% of the purse

22 of such race. All nominating, sustaining and starting

23 payments shall be held for the benefit of entrants and

24 shall be paid out as part of the respective purses for such

25 races. Nominating, sustaining and starting fees shall be

26 held in trust accounts for the purposes as set forth in

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1 this Act and in accordance with Section 205-15 of the

2 Department of Agriculture Law (20 ILCS 205/205-15).

3 5. Provide for the registration with the Department of

4 Agriculture of Colt Associations or county fairs desiring

5 to sponsor races at county fairs.

6 6. Provide for the promotion of producing standardbred

7 racehorses by providing a bonus award program for owners of

8 2-year-old horses that win multiple major stakes races that

9 are limited to Illinois conceived and foaled horses.

10 (k) The Department of Agriculture, with the advice and

11 assistance of the Illinois Standardbred Breeders Fund Advisory

12 Board, may allocate monies for purse supplements for such

13 races. In determining whether to allocate money and the amount,

14 the Department of Agriculture shall consider factors,

15 including but not limited to, the amount of money appropriated

16 for the Illinois Standardbred Breeders Fund program, the number

17 of races that may occur, and an organizational licensee's purse

18 structure. The organizational licensee shall notify the

19 Department of Agriculture of the conditions and minimum purses

20 for races limited to Illinois conceived and foaled horses to be

21 conducted by each organizational licensee conducting a harness

22 racing meeting for which purse supplements have been

23 negotiated.

24 (l) All races held at county fairs and the State Fair which

25 receive funds from the Illinois Standardbred Breeders Fund

26 shall be conducted in accordance with the rules of the United

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1 States Trotting Association unless otherwise modified by the

2 Department of Agriculture.

3 (m) At all standardbred race meetings held or conducted

4 under authority of a license granted by the Board, and at all

5 standardbred races held at county fairs which are approved by

6 the Department of Agriculture or at the Illinois or DuQuoin

7 State Fairs, no one shall jog, train, warm up or drive a

8 standardbred horse unless he or she is wearing a protective

9 safety helmet, with the chin strap fastened and in place, which

10 meets the standards and requirements as set forth in the 1984

11 Standard for Protective Headgear for Use in Harness Racing and

12 Other Equestrian Sports published by the Snell Memorial

13 Foundation, or any standards and requirements for headgear the

14 Illinois Racing Board may approve. Any other standards and

15 requirements so approved by the Board shall equal or exceed

16 those published by the Snell Memorial Foundation. Any

17 equestrian helmet bearing the Snell label shall be deemed to

18 have met those standards and requirements.

19 (Source: P.A. 99-756, eff. 8-12-16.)

20 (230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)

21 Sec. 31.1. (a) Organization licensees collectively shall

22 contribute annually to charity the sum of $1,000,000~~$750,000~~

23 to non-profit organizations that provide medical and family,

24 counseling, and similar services to persons who reside or work

25 on the backstretch of Illinois racetracks. These contributions

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1 shall be collected as follows: (i) no later than July 1st of

2 each year the Board shall assess each organization licensee,

3 except those tracks which are not within 100 miles of each

4 other which tracks shall pay$40,000 ~~$30,000~~ annually apiece

5 into the Board charity fund, that amount which equals$920,000

6 ~~$690,000~~multiplied by the amount of pari-mutuel wagering

7 handled by the organization licensee in the year preceding

8 assessment and divided by the total pari-mutuel wagering

9 handled by all Illinois organization licensees, except those

10 tracks which are not within 100 miles of each other, in the

11 year preceding assessment; (ii) notice of the assessed

12 contribution shall be mailed to each organization licensee;

13 (iii) within thirty days of its receipt of such notice, each

14 organization licensee shall remit the assessed contribution to

15 the Board. If an organization licensee wilfully fails to so

16 remit the contribution, the Board may revoke its license to

17 conduct horse racing.

18 (b) No later than October 1st of each year, any qualified

19 charitable organization seeking an allotment of contributed

20 funds shall submit to the Board an application for those funds,

21 using the Board's approved form. No later than December 31st of

22 each year, the Board shall distribute all such amounts

23 collected that year to such charitable organization

24 applicants.

25 (Source: P.A. 87-110.)

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1 (230 ILCS 5/32.1)

2 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack

3 real estate equalization.

4 (a) In order to encourage new investment in Illinois

5 racetrack facilities and mitigate differing real estate tax

6 burdens among all racetracks, the licensees affiliated or

7 associated with each racetrack that has been awarded live

8 racing dates in the current year shall receive an immediate

9 pari-mutuel tax credit in an amount equal to the greater of (i)

10 50% of the amount of the real estate taxes paid in the prior

11 year attributable to that racetrack, or (ii) the amount by

12 which the real estate taxes paid in the prior year attributable

13 to that racetrack exceeds 60% of the average real estate taxes

14 paid in the prior year for all racetracks awarded live horse

15 racing meets in the current year.

16 Each year, regardless of whether the organization licensee

17 conducted live racing in the year of certification, the Board

18 shall certify in writing, prior to December 31, the real estate

19 taxes paid in that year for each racetrack and the amount of

20 the pari-mutuel tax credit that each organization licensee,

21 inter-track ~~intertrack~~wagering licensee, andinter-track

22 ~~intertrack~~wagering location licensee that derives its license

23 from such racetrack is entitled in the succeeding calendar

24 year. The real estate taxes considered under this Section for

25 any racetrack shall be those taxes on the real estate parcels

26 and related facilities used to conduct a horse race meeting and

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1 inter-track wagering at such racetrack under this Act. In no

2 event shall the amount of the tax credit under this Section

3 exceed the amount of pari-mutuel taxes otherwise calculated

4 under this Act. The amount of the tax credit under this Section

5 shall be retained by each licensee and shall not be subject to

6 any reallocation or further distribution under this Act. The

7 Board may promulgate emergency rules to implement this Section.

8 (b) Beginning on January 1 following the calendar year

9 during which an organization licensee begins conducting

10 electronic gaming operations pursuant to an electronic gaming

11 license issued under the Illinois Gambling Act, the

12 organization licensee shall be ineligible to receive a tax

13 credit under this Section.

14 (Source: P.A. 91-40, eff. 6-25-99; revised 9-2-16.)

15 (230 ILCS 5/34.3 new)

16 Sec. 34.3. Drug testing. The Illinois Racing Board and the

17 Department of Agriculture shall jointly establish a program for

18 the purpose of conducting drug testing of horses at county

19 fairs and shall adopt any rules necessary for enforcement of

20 the program. The rules shall include appropriate penalties for

21 violations.

22 (230 ILCS 5/36) (from Ch. 8, par. 37-36)

23 Sec. 36. (a) Whoever administers or conspires to administer

24 to any horse a hypnotic, narcotic, stimulant, depressant or any

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1 chemical substance which may affect the speed of a horse at any

2 time in any race where the purse or any part of the purse is

3 made of money authorized by any Section of this Act, except

4 those chemical substances permitted by ruling of the Board,

5 internally, externally or by hypodermic method in a race or

6 prior thereto, or whoever knowingly enters a horse in any race

7 within a period of 24 hours after any hypnotic, narcotic,

8 stimulant, depressant or any other chemical substance which may

9 affect the speed of a horse at any time, except those chemical

10 substances permitted by ruling of the Board, has been

11 administered to such horse either internally or externally or

12 by hypodermic method for the purpose of increasing or retarding

13 the speed of such horse shall be guilty of a Class 4 felony.

14 The Board shall suspend or revoke such violator's license.

15 (b) The term "hypnotic" as used in this Section includes

16 all barbituric acid preparations and derivatives.

17 (c) The term "narcotic" as used in this Section includes

18 opium and all its alkaloids, salts, preparations and

19 derivatives, cocaine and all its salts, preparations and

20 derivatives and substitutes.

21 (d) The provisions of this Section 36 and the treatment

22 authorized herein apply to horses entered in and competing in

23 race meetings as defined in Section 3.07 of this Act and to

24 horses entered in and competing at any county fair.

25 (Source: P.A. 79-1185.)

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1 (230 ILCS 5/39.2 new)

2 Sec. 39.2. Prohibition of political contributions from

3 certain licensees and applicants.

4 (a) The General Assembly has a compelling interest in

5 protecting the integrity of both the electoral process and the

6 legislative process by preventing corruption and the

7 appearance of corruption which may arise through permitting

8 certain political campaign contributions by certain persons

9 involved in the horse racing industry and regulated by the

10 State. Unlike most other regulated industries, horse racing is

11 especially susceptible to corruption and potential criminal

12 influence. In Illinois, only licensed horse racing is legal and

13 all other such activities are strictly prohibited. Given these

14 circumstances, it is imperative to eliminate any potential

15 corrupt influence in the horse racing industry and the

16 electoral process.

17 Banning political campaign contributions by certain

18 persons subject to this Section to State officeholders and

19 candidates for such offices and to county and municipal

20 officeholders and candidates for such offices in counties and

21 municipalities that receive financial benefits from horse

22 racing is necessary to prevent corruption and the appearance of

23 corruption that may arise when political campaign

24 contributions and horse racing that is regulated by the State

25 and that confers benefits on counties and municipalities are

26 intermingled.

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1 (b) As used in this Section:

2 "Affiliated entity" means (i) any corporate parent and each

3 operating subsidiary of the business entity applying for or

4 holding a license, (ii) each operating subsidiary of the

5 corporate parent of the business entity applying for or holding

6 a license, (iii) any organization recognized by the United

7 States Internal Revenue Service as a tax-exempt organization

8 described in Section 501(c) of the Internal Revenue Code of

9 1986 (or any successor provision of federal tax law)

10 established by one or more business entities seeking or holding

11 a license, any affiliated entity of such business entity, or

12 any affiliated person of such business entity, and (iv) any

13 political committee for which the business entity applying for

14 or holding a license, or any 501(c) organization described in

15 item (iii) related to that business entity, is the sponsoring

16 entity, as defined in Section 9-3 of the Election Code. For

17 purposes of item (iv), the funding of all business entities

18 applying for or holding a license shall be aggregated in

19 determining whether such political committee is an affiliated

20 entity.

21 "Affiliated person" means (i) any person with any ownership

22 interest or distributive share in excess of 7.5% of any

23 business entity applying for or holding a license, (ii)

24 executive employees of any such business entity, and (iii) the

25 spouse of the persons described in items (i) and (ii).

26 "Business entity" means any entity doing business for

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1 profit, whether organized as a corporation, partnership, sole

2 proprietorship, limited liability company, or otherwise.

3 "Contribution" means a contribution as defined in Section

4 9-1.4 of the Election Code.

5 "Declared candidate" means a person who has filed a

6 statement of candidacy and petition for nomination or election

7 in the principal office of the State Board of Elections, or in

8 the office of the appropriate election authority for any county

9 or municipality in which a race track is located.

10 "Executive employee" means (i) any person who is an officer

11 or director or who fulfills duties equivalent to those of an

12 officer or director of a business entity applying for or

13 holding a license and (ii) any employee of such business entity

14 who is required to register under the Lobbyist Registration

15 Act.

16 "License" means any organization, inter-track wagering,

17 inter-track wagering location, advance deposit wagering or

18 concessionaire license issued pursuant to this Act.

19 "Officeholder" means the Governor, Lieutenant Governor,

20 Attorney General, Secretary of State, Comptroller, Treasurer,

21 member of the General Assembly, or any officeholder in any

22 county or municipality in which a race track is located.

23 (c) Any person or business entity applying for or holding a

24 license, any affiliated entities or persons of such business

25 entity, any horsemen's association, and any entities or persons

26 soliciting a contribution or causing a contribution to be made

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1 on behalf of such person, business entity, or horsemen's

2 association, are prohibited from making any contribution to any

3 officeholder or declared candidate or any political committee

4 affiliated with any officeholder or declared candidate, as

5 defined in Section 9-1.8 of the Election Code. This prohibition

6 shall commence upon filing of an application for a license and

7 shall continue for a period of 2 years after termination,

8 suspension or revocation of the license.

9 The Board shall have authority to suspend, revoke, or

10 restrict the license and to impose civil penalties of up to

11 $100,000 for each violation of this subsection (c). A notice of

12 each such violation and the penalty imposed shall be published

13 on the Board's Internet website and in the Illinois Register.

14 Payments received by the State pursuant to this subsection

15 shall be deposited into the General Revenue Fund.

16 Any officeholder or declared candidate or any political

17 committee affiliated with any officeholder or declared

18 candidate that has received a contribution in violation of this

19 subsection (c) shall pay an amount equal to the value of the

20 contribution to the State no more than 30 days after notice of

21 the violation concerning the contribution appears in the

22 Illinois Register. Payments received by the State pursuant to

23 this subsection (c) shall be deposited into the General Revenue

24 Fund.

25 (d) The Board shall post on its website a list of all

26 persons, business entities, horsemen's associations, and

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1 affiliated entities prohibited from making contributions to

2 any officeholder or declared candidate political committee

3 pursuant to subsection (c), which list shall be updated and

4 published, at a minimum, every 6 months.

5 Any person, business entity, horsemen's association, or

6 affiliated entity prohibited from making contributions to any

7 officeholder or declared candidate political committee

8 pursuant to subsection (c) shall notify the Board within 7 days

9 after discovering any necessary change or addition to the

10 information relating to that person, business entity,

11 horsemen's association, or affiliated entity contained in the

12 list.

13 An individual who acts in good faith and in reliance on any

14 information contained in the list shall not be subject to any

15 penalties or liability imposed for a violation of this Section.

16 (e) If any provision of this Section is held invalid or its

17 application to any person or circumstance is held invalid, the

18 invalidity of that provision or application does not affect the

19 other provisions or applications of this Section that can be

20 given effect without the invalid application or provision.

21 (230 ILCS 5/40) (from Ch. 8, par. 37-40)

22 Sec. 40. (a) The imposition of any fine or penalty provided

23 in this Act shall not preclude the Board in its rules and

24 regulations from imposing a fine or penalty for any other

25 action which, in the Board's discretion, is a detriment or

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1 impediment to horse racing.

2 (b) The Director of Agriculture or his or her authorized

3 representative shall impose the following monetary penalties

4 and hold administrative hearings as required for failure to

5 submit the following applications, lists, or reports within the

6 time period, date or manner required by statute or rule or for

7 removing a foal from Illinois prior to inspection:

8 (1) late filing of a renewal application for offering

9 or standing stallion for service:

10 (A) if an application is submitted no more than 30

11 days late, $50;

12 (B) if an application is submitted no more than 45

13 days late, $150; or

14 (C) if an application is submitted more than 45

15 days late, if filing of the application is allowed

16 under an administrative hearing, $250;

17 (2) late filing of list or report of mares bred:

18 (A) if a list or report is submitted no more than

19 30 days late, $50;

20 (B) if a list or report is submitted no more than

21 60 days late, $150; or

22 (C) if a list or report is submitted more than 60

23 days late, if filing of the list or report is allowed

24 under an administrative hearing, $250;

25 (3) filing an Illinois foaled thoroughbred mare status

26 report after the statutory deadline as provided in

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1 subsection (k) of Section 30 of this Act~~December 31~~:

2 (A) if a report is submitted no more than 30 days

3 late, $50;

4 (B) if a report is submitted no more than 90 days

5 late, $150;

6 (C) if a report is submitted no more than 150 days

7 late, $250; or

8 (D) if a report is submitted more than 150 days

9 late, if filing of the report is allowed under an

10 administrative hearing, $500;

11 (4) late filing of application for foal eligibility

12 certificate:

13 (A) if an application is submitted no more than 30

14 days late, $50;

15 (B) if an application is submitted no more than 90

16 days late, $150;

17 (C) if an application is submitted no more than 150

18 days late, $250; or

19 (D) if an application is submitted more than 150

20 days late, if filing of the application is allowed

21 under an administrative hearing, $500;

22 (5) failure to report the intent to remove a foal from

23 Illinois prior to inspection, identification and

24 certification by a Department of Agriculture investigator,

25 $50; and

26 (6) if a list or report of mares bred is incomplete,

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1 $50 per mare not included on the list or report.

2 Any person upon whom monetary penalties are imposed under

3 this Section 3 times within a5-year ~~5 year~~ period shall have

4 any further monetary penalties imposed at double the amounts

5 set forth above. All monies assessed and collected for

6 violations relating to thoroughbreds shall be paid into the

7 Illinois Thoroughbred Breeders Fund. All monies assessed and

8 collected for violations relating to standardbreds shall be

9 paid into the IllinoisStandardbred Breeders Fund.

10 (Source: P.A. 87-397; revised 9-2-16.)

11 (230 ILCS 5/54.75)

12 Sec. 54.75. Horse Racing Equity Trust Fund.

13 (a) There is created a Fund to be known as the Horse Racing

14 Equity Trust Fund, which is a non-appropriated trust fund held

15 separate and apart from State moneys. The Fund shall consist of

16 moneys paid into it by owners licensees under theIllinois

17 ~~Riverboat~~ Gambling Act for the purposes described in this

18 Section. The Fund shall be administered by the Board. Moneys in

19 the Fund shall be distributed as directed and certified by the

20 Board in accordance with the provisions of subsection (b).

21 (b) The moneys deposited into the Fund, plus any accrued

22 interest on those moneys, shall be distributed within 10 days

23 after those moneys are deposited into the Fund as follows:

24 (1) Sixty percent of all moneys distributed under this

25 subsection shall be distributed to organization licensees

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1 to be distributed at their race meetings as purses.

2 Fifty-seven percent of the amount distributed under this

3 paragraph (1) shall be distributed for thoroughbred race

4 meetings and 43% shall be distributed for standardbred race

5 meetings. Within each breed, moneys shall be allocated to

6 each organization licensee's purse fund in accordance with

7 the ratio between the purses generated for that breed by

8 that licensee during the prior calendar year and the total

9 purses generated throughout the State for that breed during

10 the prior calendar year by licensees in the current

11 calendar year.

12 (2) The remaining 40% of the moneys distributed under

13 this subsection (b) shall be distributed as follows:

14 (A) 11% shall be distributed to any person (or its

15 successors or assigns) who had operating control of a

16 racetrack that conducted live racing in 2002 at a

17 racetrack in a county with at least 230,000 inhabitants

18 that borders the Mississippi River and is a licensee in

19 the current year; and

20 (B) the remaining 89% shall be distributed pro rata

21 according to the aggregate proportion of total handle

22 from wagering on live races conducted in Illinois

23 (irrespective of where the wagers are placed) for

24 calendar years 2004 and 2005 to any person (or its

25 successors or assigns) who (i) had majority operating

26 control of a racing facility at which live racing was

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1 conducted in calendar year 2002, (ii) is a licensee in

2 the current year, and (iii) is not eligible to receive

3 moneys under subparagraph (A) of this paragraph (2).

4 The moneys received by an organization licensee

5 under this paragraph (2) shall be used by each

6 organization licensee to improve, maintain, market,

7 and otherwise operate its racing facilities to conduct

8 live racing, which shall include backstretch services

9 and capital improvements related to live racing and the

10 backstretch. Any organization licensees sharing common

11 ownership may pool the moneys received and spent at all

12 racing facilities commonly owned in order to meet these

13 requirements.

14 If any person identified in this paragraph (2) becomes

15 ineligible to receive moneys from the Fund, such amount

16 shall be redistributed among the remaining persons in

17 proportion to their percentages otherwise calculated.

18 (c) The Board shall monitor organization licensees to

19 ensure that moneys paid to organization licensees under this

20 Section are distributed by the organization licensees as

21 provided in subsection (b).

22 (Source: P.A. 95-1008, eff. 12-15-08.)

23 (230 ILCS 5/56 new)

24 Sec. 56. Electronic gaming.

25 (a) A person, firm, corporation, or limited liability

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1 company having operating control of a race track may apply to

2 the Gaming Board for an electronic gaming license. An

3 electronic gaming license shall authorize its holder to conduct

4 electronic gaming on the grounds of the race track controlled

5 by the licensee's race track. Only one electronic gaming

6 license may be awarded for any race track. A holder of an

7 electronic gaming license shall be subject to the Illinois

8 Gambling Act and rules of the Illinois Gaming Board concerning

9 electronic gaming. If the person, firm, corporation, or limited

10 liability company having operating control of a race track is

11 found by the Illinois Gaming Board to be unsuitable for an

12 electronic gaming license under the Illinois Gambling Act and

13 rules of the Gaming Board, that person, firm, corporation, or

14 limited liability company shall not be granted an electronic

15 gaming license. Each license shall specify the number of gaming

16 positions that its holder may operate.

17 An electronic gaming licensee may not permit persons under

18 21 years of age to be present in its electronic gaming

19 facility, but the licensee may accept wagers on live racing and

20 inter-track wagers at its electronic gaming facility.

21 (b) For purposes of this subsection, "adjusted gross

22 receipts" means an electronic gaming licensee's gross receipts

23 less winnings paid to wagerers and shall also include any

24 amounts that would otherwise be deducted pursuant to subsection

25 (a-9) of Section 13 of the Illinois Gambling Act. The adjusted

26 gross receipts by an electronic gaming licensee from electronic

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1 gaming remaining after the payment of taxes under Section 13 of

2 the Illinois Gambling Act shall be distributed as follows:

3 (1) Amounts shall be paid to the purse account at the

4 track at which the organization licensee is conducting

5 racing equal to the following:

6 12.75% of annual adjusted gross receipts up to and

7 including $75,000,000;

8 20% of annual adjusted gross receipts in excess of

9 $75,000,000 but not exceeding $100,000,000;

10 26.5% of annual adjusted gross receipts in excess

11 of $100,000,000 but not exceeding $125,000,000; and

12 20.5% of annual adjusted gross receipts in excess

13 of $125,000,000.

14 (2) The remainder shall be retained by the electronic

15 gaming licensee.

16 (c) Electronic gaming receipts placed into the purse

17 account of an organization licensee racing thoroughbred horses

18 shall be used for purses, for health care services or worker's

19 compensation for racing industry workers, for equine research,

20 for programs to care for and transition injured and retired

21 thoroughbred horses that race at the race track, or for horse

22 ownership promotion, in accordance with the agreement of the

23 horsemen's association representing the largest number of

24 owners and trainers who race at that organization licensee's

25 race meetings.

26 Annually, from the purse account of an organization

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1 licensee racing thoroughbred horses in this State, except for

2 in Madison County, an amount equal to 12% of the electronic

3 gaming receipts placed into the purse accounts shall be paid to

4 the Illinois Thoroughbred Breeders Fund and shall be used for

5 owner awards; a stallion program pursuant to paragraph (3) of

6 subsection (g) of Section 30 of this Act; and Illinois

7 conceived and foaled stakes races pursuant to paragraph (2) of

8 subsection (g) of Section 30 of this Act, as specifically

9 designated by the horsemen's association representing the

10 largest number of owners and trainers who race at the

11 organization licensee's race meetings.

12 Annually, from the purse account of an organization

13 licensee racing thoroughbred horses in Madison County, an

14 amount equal to 10% of the electronic gaming receipts placed

15 into the purse accounts shall be paid to the Illinois

16 Thoroughbred Breeders Fund and shall be used for owner awards;

17 a stallion program pursuant to paragraph (3) of subsection (g)

18 of Section 30 of this Act; and Illinois conceived and foaled

19 stakes races pursuant to paragraph (2) of subsection (g) of

20 Section 30 of this Act, as specifically designated by the

21 horsemen's association representing the largest number of

22 owners and trainers who race at the organization licensee's

23 race meetings.

24 Annually, from the purse account of an organization

25 licensee conducting thoroughbred races at a race track in

26 Madison County, an amount equal to 1% of the electronic gaming

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1 receipts distributed to purses per subsection (b) of this

2 Section 56 shall be paid as follows: 0.33 1/3% to Southern

3 Illinois University Department of Animal Sciences for equine

4 research and education, an amount equal to 0.33 1/3% of the

5 electronic gaming receipts shall be used to operate laundry

6 facilities or a kitchen for backstretch workers at that race

7 track, and an amount equal to 0.33 1/3% of the electronic

8 gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)

9 non-profit organization that cares for injured and unwanted

10 horses that race at that race track.

11 Annually, from the purse account of organization licensees

12 conducting thoroughbred races at race tracks in Cook County,

13 $100,000 shall be paid for division and equal distribution to

14 the animal sciences department of each Illinois public

15 university system engaged in equine research and education on

16 or before the effective date of this amendatory Act of the

17 100th General Assembly for equine research and education.

18 (d) Annually, from the purse account of an organization

19 licensee racing standardbred horses, an amount equal to 15% of

20 the electronic gaming receipts placed into that purse account

21 shall be paid to the Illinois Colt Stakes Purse Distribution

22 Fund. Moneys deposited into the Illinois Colt Stakes Purse

23 Distribution Fund shall be used for standardbred racing as

24 authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of

25 subsection (g) of Section 31 of this Act and for bonus awards

26 as authorized under paragraph 6 of subsection (j) of Section 31

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1 of this Act.

2 (e) The Illinois Gaming Board shall submit a report to the

3 General Assembly on or before December 31, 2018 that examines

4 the feasibility of conducting electronic gaming at the Illinois

5 State Fairgrounds in Sangamon County. At a minimum, this report

6 shall analyze the projected revenues that will be generated,

7 the potential for cannibalization of existing riverboats,

8 casinos, or other electronic gaming facilities, and the

9 potential detriment to the surrounding area and its population.

10 The report shall include the Illinois Gaming Board's findings

11 together with appropriate recommendations for legislative

12 action.

13 Section 90-40. The Riverboat Gambling Act is amended by

14 changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,

15 11.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,

16 and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,

17 7.12, 7.13, and 18.2 as follows:

18 (230 ILCS 10/1) (from Ch. 120, par. 2401)

19 Sec. 1. Short title. This Act shall be known and may be

20 cited as theIllinois ~~Riverboat~~ Gambling Act.

21 (Source: P.A. 86-1029.)

22 (230 ILCS 10/2) (from Ch. 120, par. 2402)

23 Sec. 2. Legislative Intent.

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1 (a) This Act is intended to benefit the people of the State

2 of Illinois by assisting economic development, ~~and~~ promoting

3 Illinois tourism,and~~by~~ increasing the amount of revenues

4 available to the State to assist and support education, and to

5 defray State expenses, including unpaid bills.

6 (b) While authorization of riverboat and casino gambling

7 will enhance investment,beautification, development and

8 tourism in Illinois, it is recognized that it will do so

9 successfully only if public confidence and trust in the

10 credibility and integrity of the gambling operations and the

11 regulatory process is maintained. Therefore, regulatory

12 provisions of this Act are designed to strictly regulate the

13 facilities, persons, associations and practices related to

14 gambling operations pursuant to the police powers of the State,

15 including comprehensive law enforcement supervision.

16 (c) The Illinois Gaming Board established under this Act

17 should, as soon as possible, inform each applicant for an

18 owners license of the Board's intent to grant or deny a

19 license.

20 (Source: P.A. 93-28, eff. 6-20-03.)

21 (230 ILCS 10/3) (from Ch. 120, par. 2403)

22 Sec. 3. ~~Riverboat~~ Gambling Authorized.

23 (a) Riverboat and casinogambling operationsand

24 electronic gaming operations ~~and the system of wagering~~

25 ~~incorporated therein~~, as defined in this Act, are hereby

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1 authorized to the extent that they are carried out in

2 accordance with the provisions of this Act.

3 (b) This Act does not apply to the pari-mutuel system of

4 wagering used or intended to be used in connection with the

5 horse-race meetings as authorized under the Illinois Horse

6 Racing Act of 1975, lottery games authorized under the Illinois

7 Lottery Law, bingo authorized under the Bingo License and Tax

8 Act, charitable games authorized under the Charitable Games Act

9 or pull tabs and jar games conducted under the Illinois Pull

10 Tabs and Jar Games Act.This Act applies to electronic gaming

11 authorized under the Illinois Horse Racing Act of 1975 to the

12 extent provided in that Act and in this Act.

13 (c) Riverboat gambling conducted pursuant to this Act may

14 be authorized upon any water within the State of Illinois or

15 any water other than Lake Michigan which constitutes a boundary

16 of the State of Illinois.Notwithstanding any provision in this

17 subsection (c) to the contrary, a licensee that receives its

18 license pursuant to subsection (e-5) of Section 7 may conduct

19 riverboat gambling on Lake Michigan from a home dock located on

20 Lake Michigan subject to any limitations contained in Section

21 7. Notwithstanding any provision in this subsection (c) to the

22 contrary, a licensee may conduct gambling at its home dock

23 facility as provided in Sections 7 and 11. A licensee may

24 conduct riverboat gambling authorized under this Act

25 regardless of whether it conducts excursion cruises. A licensee

26 may permit the continuous ingress and egress of passengers for

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1 the purpose of gambling.

2 (d) Gambling that is conducted in accordance with this Act

3 using slot machines and video games of chance and other

4 electronic gambling games as defined in both this Act and the

5 Illinois Horse Racing Act of 1975 is authorized.

6 (Source: P.A. 91-40, eff. 6-25-99.)

7 (230 ILCS 10/4) (from Ch. 120, par. 2404)

8 Sec. 4. Definitions. As used in this Act:

9 ~~(a)~~ "Board" means the Illinois Gaming Board.

10 ~~(b)~~ "Occupational license" means a license issued by the

11 Board to a person or entity to perform an occupation which the

12 Board has identified as requiring a license to engage in

13 riverboat gambling, casino gambling, or electronic gaming in

14 Illinois.

15 ~~(c)~~ "Gambling game" includes, but is not limited to,

16 baccarat, twenty-one, poker, craps, slot machine, video game of

17 chance, roulette wheel, klondike table, punchboard, faro

18 layout, keno layout, numbers ticket, push card, jar ticket, or

19 pull tab which is authorized by the Board as a wagering device

20 under this Act.

21 ~~(d)~~"Riverboat" means a self-propelled excursion boat, a

22 permanently moored barge, or permanently moored barges that are

23 permanently fixed together to operate as one vessel, on which

24 lawful gambling is authorized and licensed as provided in this

25 Act.

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1 "Slot machine" means any mechanical, electrical, or other

2 device, contrivance, or machine that is authorized by the Board

3 as a wagering device under this Act which, upon insertion of a

4 coin, currency, token, or similar object therein, or upon

5 payment of any consideration whatsoever, is available to play

6 or operate, the play or operation of which may deliver or

7 entitle the person playing or operating the machine to receive

8 cash, premiums, merchandise, tokens, or anything of value

9 whatsoever, whether the payoff is made automatically from the

10 machine or in any other manner whatsoever. A slot machine:

11 (1) may utilize spinning reels or video displays or

12 both;

13 (2) may or may not dispense coins, tickets, or tokens

14 to winning patrons;

15 (3) may use an electronic credit system for receiving

16 wagers and making payouts; and

17 (4) may simulate a table game.

18 "Slot machine" does not include table games authorized by

19 the Board as a wagering device under this Act.

20 ~~(e)~~ "Managers license" means a license issued by the Board

21 to a person or entity to manage gambling operations conducted

22 by the State pursuant to Section 7.3.

23 ~~(f)~~ "Dock" means the location where a riverboat moors for

24 the purpose of embarking passengers for and disembarking

25 passengers from the riverboat.

26 ~~(g)~~ "Gross receipts" means the total amount of money

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1 exchanged for the purchase of chips, tokens, or electronic

2 cards by riverboat patrons.

3 ~~(h)~~"Adjusted gross receipts" means the gross receipts less

4 winnings paid to wagerers.

5 ~~(i)~~ "Cheat" means to alter the selection of criteria which

6 determine the result of a gambling game or the amount or

7 frequency of payment in a gambling game.

8 ~~(j) (Blank).~~

9 ~~(k)~~ "Gambling operation" means the conduct of ~~authorized~~

10 gambling games authorized under this Actupon a riverboator in

11 a casino or authorized under this Act and the Illinois Horse

12 Racing Act of 1975 at an electronic gaming facility.

13 ~~(l)~~ "License bid" means the lump sum amount of money that

14 an applicant bids and agrees to pay the State in return for an

15 owners license that is issued orre-issued on or after July 1,

16 2003.

17 "Table game" means a live gaming apparatus upon which

18 gaming is conducted or that determines an outcome that is the

19 object of a wager, including, but not limited to, baccarat,

20 twenty-one, blackjack, poker, craps, roulette wheel, klondike

21 table, punchboard, faro layout, keno layout, numbers ticket,

22 push card, jar ticket, pull tab, or other similar games that

23 are authorized by the Board as a wagering device under this

24 Act. "Table game" does not include slot machines or video games

25 of chance.

26 ~~(m)~~ The terms "minority person", "female", and "person with

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1 a disability" shall have the same meaning as defined in Section

2 2 of the Business Enterprise for Minorities, Females, and

3 Persons with Disabilities Act.

4 "Authority" means the Chicago Casino Development

5 Authority.

6 "Casino" means a facility at which lawful gambling is

7 authorized as provided in this Act.

8 "Owners license" means a license to conduct riverboat or

9 casino gambling operations, but does not include an electronic

10 gaming license.

11 "Licensed owner" means a person who holds an owners

12 license.

13 "Electronic gaming" means slot machine gambling, video

14 game of chance gambling, or gambling with electronic gambling

15 games as defined in this Act or defined by the Board that is

16 conducted at a race track pursuant to an electronic gaming

17 license.

18 "Electronic gaming facility" means the area where the Board

19 has authorized electronic gaming at a race track of an

20 organization licensee under the Illinois Horse Racing Act of

21 1975 that holds an electronic gaming license.

22 "Electronic gaming license" means a license issued by the

23 Board under Section 7.7 of this Act authorizing electronic

24 gaming at an electronic gaming facility.

25 "Electronic gaming licensee" means an entity that holds an

26 electronic gaming license.

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1 "Organization licensee" means an entity authorized by the

2 Illinois Racing Board to conduct pari-mutuel wagering in

3 accordance with the Illinois Horse Racing Act of 1975. With

4 respect only to electronic gaming, "organization licensee"

5 includes the authorization for electronic gaming created under

6 subsection (a) of Section 56 of the Illinois Horse Racing Act

7 of 1975.

8 "Casino operator license" means the license held by the

9 person or entity selected by the Authority to manage and

10 operate a riverboat or casino within the geographic area of the

11 authorized municipality pursuant to this Act and the Chicago

12 Casino Development Authority Act.

13 (Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)

14 (230 ILCS 10/5) (from Ch. 120, par. 2405)

15 Sec. 5. Gaming Board.

16 (a) (1) There is hereby established the Illinois Gaming

17 Board, which shall have the powers and duties specified in this

18 Act and in the Chicago Casino Development Authority Act, and

19 all other powers necessary and proper to fully and effectively

20 execute this Act for the purpose of administering, regulating,

21 and enforcing the system of riverboat and casino gambling and

22 electronic gaming established by this Act and by the Chicago

23 Casino Development Authority Act. Its jurisdiction shall

24 extend under this Act and the Chicago Casino Development

25 Authority Actto every person, association, corporation,

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1 partnership and trust involved in riverboat and casinogambling

2 operations and electronic gaming in the State of Illinois.

3 (2) The Board shall consist of 5 members to be appointed by

4 the Governor with the advice and consent of the Senate, one of

5 whom shall be designated by the Governor to bechairperson

6 ~~chairman~~. Each member shall have a reasonable knowledge of the

7 practice, procedure and principles of gambling operations.

8 Each member shall either be a resident of Illinois or shall

9 certify that he or shewill become a resident of Illinois

10 before taking office.

11 On and after the effective date of this amendatory Act of

12 the 100th General Assembly, new appointees to the Board must

13 include the following:

14 (A) One member who has received, at a minimum, a

15 bachelor's degree from an accredited school and at least 10

16 years of verifiable training and experience in the fields

17 of investigation and law enforcement.

18 (B) One member who is a certified public accountant

19 with experience in auditing and with knowledge of complex

20 corporate structures and transactions.

21 (C) One member who has 5 years' experience as a

22 principal, senior officer, or director of a company or

23 business with either material responsibility for the daily

24 operations and management of the overall company or

25 business or material responsibility for the policy making

26 of the company or business.

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1 (D) One member who is a lawyer licensed to practice law

2 in Illinois.

3 Notwithstanding any provision of this subsection (a), the

4 requirements of subparagraphs (A) through (D) of this paragraph

5 (2) shall not apply to any person reappointed pursuant to

6 paragraph (3).

7 No more than 3 members of the Board may be from the same

8 political party. The Board should reflect the ethnic, cultural,

9 and geographic diversity of the State. No Board member shall,

10 within a period of one year immediately preceding nomination,

11 have been employed or received compensation or fees for

12 services from a person or entity, or its parent or affiliate,

13 that has engaged in business with the Board, a licensee, or a

14 licensee under the Illinois Horse Racing Act of 1975. Board

15 members must publicly disclose all prior affiliations with

16 gaming interests, including any compensation, fees, bonuses,

17 salaries, and other reimbursement received from a person or

18 entity, or its parent or affiliate, that has engaged in

19 business with the Board, a licensee, or a licensee under the

20 Illinois Horse Racing Act of 1975. This disclosure must be made

21 within 30 days after nomination but prior to confirmation by

22 the Senate and must be made available to the members of the

23 Senate. ~~At least one member shall be experienced in law~~

24 ~~enforcement and criminal investigation, at least one member~~

25 ~~shall be a certified public accountant experienced in~~

26 ~~accounting and auditing, and at least one member shall be a~~

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1 ~~lawyer licensed to practice law in Illinois.~~

2 (3) The terms of office of the Board members shall be 3

3 years, except that the terms of office of the initial Board

4 members appointed pursuant to this Act will commence from the

5 effective date of this Act and run as follows: one for a term

6 ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for

7 a term ending July 1, 1993. Upon the expiration of the

8 foregoing terms, the successors of such members shall serve a

9 term for 3 years and until their successors are appointed and

10 qualified for like terms. Vacancies in the Board shall be

11 filled for the unexpired term in like manner as original

12 appointments. Each member of the Board shall be eligible for

13 reappointment at the discretion of the Governor with the advice

14 and consent of the Senate.

15 (4) Each member of the Board shall receive $300 for each

16 day the Board meets and for each day the member conducts any

17 hearing pursuant to this Act. Each member of the Board shall

18 also be reimbursed for all actual and necessary expenses and

19 disbursements incurred in the execution of official duties.

20 (5) No person shall be appointed a member of the Board or

21 continue to be a member of the Board who is, or whose spouse,

22 child or parent is, a member of the board of directors of, or a

23 person financially interested in, any gambling operation

24 subject to the jurisdiction of this Board, or any race track,

25 race meeting, racing association or the operations thereof

26 subject to the jurisdiction of the Illinois Racing Board. No

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1 Board member shall hold any other public office. No person

2 shall be a member of the Board who is not of good moral

3 character or who has been convicted of, or is under indictment

4 for, a felony under the laws of Illinois or any other state, or

5 the United States.

6 (5.5) No member of the Board shall engage in any political

7 activity. For the purposes of this Section, "political" means

8 any activity in support of or in connection with any campaign

9 for federal, State, or local elective office or any political

10 organization, but does not include activities (i) relating to

11 the support or opposition of any executive, legislative, or

12 administrative action (as those terms are defined in Section 2

13 of the Lobbyist Registration Act), (ii) relating to collective

14 bargaining, or (iii) that are otherwise in furtherance of the

15 person's official State duties or governmental and public

16 service functions.

17 (6) Any member of the Board may be removed by the Governor

18 for neglect of duty, misfeasance, malfeasance, or nonfeasance

19 in office or for engaging in any political activity.

20 (7) Before entering upon the discharge of the duties of his

21 office, each member of the Board shall take an oath that he

22 will faithfully execute the duties of his office according to

23 the laws of the State and the rules and regulations adopted

24 therewith and shall give bond to the State of Illinois,

25 approved by the Governor, in the sum of $25,000. Every such

26 bond, when duly executed and approved, shall be recorded in the

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1 office of the Secretary of State. Whenever the Governor

2 determines that the bond of any member of the Board has become

3 or is likely to become invalid or insufficient, he shall

4 require such member forthwith to renew his bond, which is to be

5 approved by the Governor. Any member of the Board who fails to

6 take oath and give bond within 30 days from the date of his

7 appointment, or who fails to renew his bond within 30 days

8 after it is demanded by the Governor, shall be guilty of

9 neglect of duty and may be removed by the Governor. The cost of

10 any bond given by any member of the Board under this Section

11 shall be taken to be a part of the necessary expenses of the

12 Board.

13 (7.5) For the examination of all mechanical,

14 electromechanical, or electronic table games, slot machines,

15 slot accounting systems, and other electronic gaming equipment

16 for compliance with this Act, the Board may utilize the

17 services of one or more independent outside testing

18 laboratories that have been accredited by a national

19 accreditation body and that, in the judgment of the Board, are

20 qualified to perform such examinations.

21 (8) The Board shall employ such personnel as may be

22 necessary to carry out its functions and shall determine the

23 salaries of all personnel, except those personnel whose

24 salaries are determined under the terms of a collective

25 bargaining agreement. No person shall be employed to serve the

26 Board who is, or whose spouse, parent or child is, an official

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1 of, or has a financial interest in or financial relation with,

2 any operator engaged in gambling operations within this State

3 or any organization engaged in conducting horse racing within

4 this State.For the one year immediately preceding employment,

5 an employee shall not have been employed or received

6 compensation or fees for services from a person or entity, or

7 its parent or affiliate, that has engaged in business with the

8 Board, a licensee, or a licensee under the Illinois Horse

9 Racing Act of 1975. Any employee violating these prohibitions

10 shall be subject to termination of employment.In addition, all

11 Board members and employees are subject to the restrictions set

12 forth in Section 5-45 of the State Officials and Employees

13 Ethics Act.

14 (9) An Administrator shall perform any and all duties that

15 the Board shall assign him. The salary of the Administrator

16 shall be determined by the Board and, in addition, he shall be

17 reimbursed for all actual and necessary expenses incurred by

18 him in discharge of his official duties. The Administrator

19 shall keep records of all proceedings of the Board and shall

20 preserve all records, books, documents and other papers

21 belonging to the Board or entrusted to its care. The

22 Administrator shall devote his full time to the duties of the

23 office and shall not hold any other office or employment.

24 (b) The Board shall have general responsibility for the

25 implementation of this Act. Its duties include, without

26 limitation, the following:

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1 (1) To decide promptly and in reasonable order all

2 license applications. Any party aggrieved by an action of

3 the Board denying, suspending, revoking, restricting or

4 refusing to renew a license may request a hearing before

5 the Board. A request for a hearing must be made to the

6 Board in writing within 5 days after service of notice of

7 the action of the Board. Notice of the action of the Board

8 shall be served either by personal delivery or by certified

9 mail, postage prepaid, to the aggrieved party. Notice

10 served by certified mail shall be deemed complete on the

11 business day following the date of such mailing. The Board

12 shall conduct all requested hearings promptly and in

13 reasonable order;

14 (2) To conduct all hearings pertaining to civil

15 violations of this Act or rules and regulations promulgated

16 hereunder;

17 (3) To promulgate such rules and regulations as in its

18 judgment may be necessary to protect or enhance the

19 credibility and integrity of gambling operations

20 authorized by this Act and the regulatory process

21 hereunder;

22 (4) To provide for the establishment and collection of

23 all license and registration fees and taxes imposed by this

24 Act and the rules and regulations issued pursuant hereto.

25 All such fees and taxes shall be deposited into the State

26 Gaming Fund;

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1 (5) To provide for the levy and collection of penalties

2 and fines for the violation of provisions of this Act and

3 the rules and regulations promulgated hereunder. All such

4 fines and penalties shall be deposited into the Education

5 Assistance Fund, created by Public Act 86-0018, of the

6 State of Illinois;

7 (6) To be present through its inspectors and agents any

8 time gambling operations are conducted on any riverboat, in

9 any casino, or at any electronic gaming facility for the

10 purpose of certifying the revenue thereof, receiving

11 complaints from the public, and conducting such other

12 investigations into the conduct of the gambling games and

13 the maintenance of the equipment as from time to time the

14 Board may deem necessary and proper;

15 (7) To review and rule upon any complaint by a licensee

16 regarding any investigative procedures of the State which

17 are unnecessarily disruptive of gambling operations. The

18 need to inspect and investigate shall be presumed at all

19 times. The disruption of a licensee's operations shall be

20 proved by clear and convincing evidence, and establish

21 that: (A) the procedures had no reasonable law enforcement

22 purposes, and (B) the procedures were so disruptive as to

23 unreasonably inhibit gambling operations;

24 (8) To hold at least one meeting each quarter of the

25 fiscal year. In addition, special meetings may be called by

26 the Chairman or any 2 Board members upon 72 hours written

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1 notice to each member. All Board meetings shall be subject

2 to the Open Meetings Act. Three members of the Board shall

3 constitute a quorum, and 3 votes shall be required for any

4 final determination by the Board. The Board shall keep a

5 complete and accurate record of all its meetings. A

6 majority of the members of the Board shall constitute a

7 quorum for the transaction of any business, for the

8 performance of any duty, or for the exercise of any power

9 which this Act requires the Board members to transact,

10 perform or exercise en banc, except that, upon order of the

11 Board, one of the Board members or an administrative law

12 judge designated by the Board may conduct any hearing

13 provided for under this Act or by Board rule and may

14 recommend findings and decisions to the Board. The Board

15 member or administrative law judge conducting such hearing

16 shall have all powers and rights granted to the Board in

17 this Act. The record made at the time of the hearing shall

18 be reviewed by the Board, or a majority thereof, and the

19 findings and decision of the majority of the Board shall

20 constitute the order of the Board in such case;

21 (9) To maintain records which are separate and distinct

22 from the records of any other State board or commission.

23 Such records shall be available for public inspection and

24 shall accurately reflect all Board proceedings;

25 (10) To file a written annual report with the Governor

26 on or before March 1 each year and such additional reports

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1 as the Governor may request. The annual report shall

2 include a statement of receipts and disbursements by the

3 Board, actions taken by the Board, and any additional

4 information and recommendations which the Board may deem

5 valuable or which the Governor may request;

6 (11) (Blank);

7 (12) (Blank);

8 (13) To assume responsibility for administration and

9 enforcement of the Video Gaming Act;~~and~~

10 (13.1) To assume responsibility for the administration

11 and enforcement of operations at electronic gaming

12 facilities pursuant to this Act and the Illinois Horse

13 Racing Act of 1975;

14 (13.2) To assume responsibility for the administration

15 and enforcement of gambling operations at the Chicago

16 Casino Development Authority's casino pursuant to this Act

17 and the Chicago Casino Development Authority Act; and

18 (14) To adopt, by rule, a code of conduct governing

19 Board members and employees that ensure, to the maximum

20 extent possible, that persons subject to this Code avoid

21 situations, relationships, or associations that may

22 represent or lead to a conflict of interest.

23 Internal controls and changes submitted by licensees must

24 be reviewed and either approved or denied with cause within 90

25 days after receipt of submission is deemed final by the

26 Illinois Gaming Board. In the event an internal control

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1 submission or change does not meet the standards set by the

2 Board, staff of the Board must provide technical assistance to

3 the licensee to rectify such deficiencies within 90 days after

4 the initial submission and the revised submission must be

5 reviewed and approved or denied with cause within 90 days after

6 the date the revised submission is deemed final by the Board.

7 For the purposes of this paragraph, "with cause" means that the

8 approval of the submission would jeopardize the integrity of

9 gaming. In the event the Board staff has not acted within the

10 timeframe, the submission shall be deemed approved.

11 (c) The Board shall have jurisdiction over and shall

12 supervise all gambling operations governed by this Actand the

13 Chicago Casino Development Authority Act. The Board shall have

14 all powers necessary and proper to fully and effectively

15 execute the provisions of this Actand the Chicago Casino

16 Development Authority Act, including, but not limited to, the

17 following:

18 (1) To investigate applicants and determine the

19 eligibility of applicants for licenses and to select among

20 competing applicants the applicants which best serve the

21 interests of the citizens of Illinois.

22 (2) To have jurisdiction and supervision over all

23 ~~riverboat~~gambling operationsauthorized under this Act

24 and the Chicago Casino Development Authority Act ~~in this~~

25 ~~State~~ and all persons in places ~~on riverboats~~ where

26 gambling operations are conducted.

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1 (3) To promulgate rules and regulations for the purpose

2 of administering the provisions of this Actand the Chicago

3 Casino Development Authority Act and to prescribe rules,

4 regulations and conditions under which all~~riverboat~~

5 gambling operations subject to this Act and the Chicago

6 Casino Development Authority Act ~~in the State~~shall be

7 conducted. Such rules and regulations are to provide for

8 the prevention of practices detrimental to the public

9 interest and for the best interests of~~riverboat~~ gambling,

10 including rules and regulations regarding the inspection

11 of electronic gaming facilities, casinos, and ~~such~~

12 riverboats,and the review of any permits or licenses

13 necessary to operate a riverboat, casino, or electronic

14 gaming facilitiesunder any laws or regulations applicable

15 to riverboats, casinos, or electronic gaming facilities

16 and to impose penalties for violations thereof.

17 (4) To enter the office, riverboats, casinos,

18 electronic gaming facilities, and other facilities, or

19 other places of business of a licensee, where evidence of

20 the compliance or noncompliance with the provisions of this

21 Act and the Chicago Casino Development Authority Act is

22 likely to be found.

23 (5) To investigate alleged violations of this Act, the

24 Chicago Casino Development Authority Act,or the rules of

25 the Board and to take appropriate disciplinary action

26 against a licensee or a holder of an occupational license

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1 for a violation, or institute appropriate legal action for

2 enforcement, or both.

3 (6) To adopt standards for the licensing of all persons

4 and entities under this Act and the Chicago Casino

5 Development Authority Act, as well as for electronic or

6 mechanical gambling games, and to establish fees for such

7 licenses.

8 (7) To adopt appropriate standards for all electronic

9 gaming facilities, riverboats, casinos,andother

10 facilities authorized under this Act and the Chicago Casino

11 Development Authority Act.

12 (8) To require that the records, including financial or

13 other statements of any licensee under this Actand the

14 Chicago Casino Development Authority Act, shall be kept in

15 such manner as prescribed by the Board and that any such

16 licensee involved in the ownership or management of

17 gambling operations submit to the Board an annual balance

18 sheet and profit and loss statement, list of the

19 stockholders or other persons having a 1% or greater

20 beneficial interest in the gambling activities of each

21 licensee, and any other information the Board deems

22 necessary in order to effectively administer this Act and

23 the Chicago Casino Development Authority Actand all rules,

24 regulations, orders and final decisions promulgated under

25 this Act and the Chicago Casino Development Authority Act.

26 (9) To conduct hearings, issue subpoenas for the

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1 attendance of witnesses and subpoenas duces tecum for the

2 production of books, records and other pertinent documents

3 in accordance with the Illinois Administrative Procedure

4 Act, and to administer oaths and affirmations to the

5 witnesses, when, in the judgment of the Board, it is

6 necessary to administer or enforce this Act, the Chicago

7 Casino Development Authority Act, or the Board rules.

8 (10) To prescribe a form to be used by any licensee

9 involved in the ownership or management of gambling

10 operations as an application for employment for their

11 employees.

12 (11) To revoke or suspend licenses, other than the

13 license issued to the Chicago Casino Development

14 Authority,as the Board may see fit and in compliance with

15 applicable laws of the State regarding administrative

16 procedures, and to review applications for the renewal of

17 licenses. The Board may suspend an owners license(other

18 than the license issued to the Chicago Casino Development

19 Authority), electronic gaming license, or casino operator

20 license, without notice or hearing upon a determination

21 that the safety or health of patrons or employees is

22 jeopardized by continuing a gambling operation conducted

23 under that license ~~riverboat's operation~~. The suspension

24 may remain in effect until the Board determines that the

25 cause for suspension has been abated. The Board may revoke

26 an ~~the~~ owners license (other than the license issued to the

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1 Chicago Casino Development Authority), electronic gaming

2 license, or casino operator licenseupon a determination

3 that the licensee ~~owner~~ has not made satisfactory progress

4 toward abating the hazard.

5 (12) To eject or exclude or authorize the ejection or

6 exclusion of, any person from~~riverboat~~ gambling

7 facilities where that ~~such~~person is in violation of this

8 Act or the Chicago Casino Development Authority Act, rules

9 and regulations thereunder, or final orders of the Board,

10 or where such person's conduct or reputation is such that

11 his or herpresence within the~~riverboat~~ gambling

12 facilities may, in the opinion of the Board, call into

13 question the honesty and integrity of the gambling

14 operations or interfere with the orderly conduct thereof;

15 provided that the propriety of such ejection or exclusion

16 is subject to subsequent hearing by the Board.

17 (13) To require all licensees of gambling operations to

18 utilize a cashless wagering system whereby all players'

19 money is converted to tokens, electronic cards, or chips

20 which shall be used only for wagering in the gambling

21 establishment.

22 (14) (Blank).

23 (15) To suspend, revoke or restrict licenses, other

24 than the license issued to the Chicago Casino Development

25 Authority,to require the removal of a licensee or an

26 employee of a licensee for a violation of this Act, the

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1 Chicago Casino Development Authority Act, or a Board rule

2 or for engaging in a fraudulent practice, and to impose

3 civil penalties of up to $5,000 against individuals and up

4 to $10,000 or an amount equal to the daily gross receipts,

5 whichever is larger, against licensees for each violation

6 of any provision of the Act, the Chicago Casino Development

7 Authority Act,any rules adopted by the Board, any order of

8 the Board or any other action which, in the Board's

9 discretion, is a detriment or impediment to ~~riverboat~~

10 gambling operations.

11 (16) To hire employees to gather information, conduct

12 investigations and carry out any other tasks contemplated

13 under this Act or the Chicago Casino Development Authority

14 Act.

15 (17) To establish minimum levels of insurance to be

16 maintained by licensees.

17 (18) To authorize a licensee to sell or serve alcoholic

18 liquors, wine or beer as defined in the Liquor Control Act

19 of 1934 on board a riverboat or in a casinoand to have

20 exclusive authority to establish the hours for sale and

21 consumption of alcoholic liquor on board a riverboat or in

22 a casino, notwithstanding any provision of the Liquor

23 Control Act of 1934 or any local ordinance, and regardless

24 of whether the riverboat makes excursions. The

25 establishment of the hours for sale and consumption of

26 alcoholic liquor on board a riverboator in a casino is an

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1 exclusive power and function of the State. A home rule unit

2 may not establish the hours for sale and consumption of

3 alcoholic liquor on board a riverboator in a casino. This

4 subdivision (18) ~~amendatory Act of 1991~~is a denial and

5 limitation of home rule powers and functions under

6 subsection (h) of Section 6 of Article VII of the Illinois

7 Constitution.

8 (19) After consultation with the U.S. Army Corps of

9 Engineers, to establish binding emergency orders upon the

10 concurrence of a majority of the members of the Board

11 regarding the navigability of water, relative to

12 excursions, in the event of extreme weather conditions,

13 acts of God or other extreme circumstances.

14 (20) To delegate the execution of any of its powers

15 under this Act or the Chicago Casino Development Authority

16 Actfor the purpose of administering and enforcing this

17 Act, the Chicago Casino Development Authority Act, and the

18 ~~its~~ rules adopted by the Board under both Acts ~~and~~

19 ~~regulations hereunder~~.

20 (20.5) To approve any contract entered into on its

21 behalf.

22 (20.6) To appoint investigators to conduct

23 investigations, searches, seizures, arrests, and other

24 duties imposed under this Act, as deemed necessary by the

25 Board. These investigators have and may exercise all of the

26 rights and powers of peace officers, provided that these

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1 powers shall be limited to offenses or violations occurring

2 or committed in a casino, in an electronic gaming facility,

3 or on a riverboat or dock, as defined in subsections (d)

4 and (f) of Section 4, or as otherwise provided by this Act,

5 the Chicago Casino Development Authority Act, or any other

6 law.

7 (20.7) To contract with the Department of State Police

8 for the use of trained and qualified State police officers

9 and with the Department of Revenue for the use of trained

10 and qualified Department of Revenue investigators to

11 conduct investigations, searches, seizures, arrests, and

12 other duties imposed under this Act or the Chicago Casino

13 Development Authority Act and to exercise all of the rights

14 and powers of peace officers, provided that the powers of

15 Department of Revenue investigators under this subdivision

16 (20.7) shall be limited to offenses or violations occurring

17 or committed in a casino, in an electronic gaming facility,

18 or on a riverboat or dock, as defined in subsections (d)

19 and (f) of Section 4, or as otherwise provided by this Act

20 or any other law. In the event the Department of State

21 Police or the Department of Revenue is unable to fill

22 contracted police or investigative positions, the Board

23 may appoint investigators to fill those positions pursuant

24 to subdivision (20.6).

25 (21) To adopt rules concerning the conduct of

26 electronic gaming.

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1 (22) To have the same jurisdiction and supervision over

2 casinos and electronic gaming facilities as the Board has

3 over riverboats, including, but not limited to, the power

4 to (i) investigate, review, and approve contracts as that

5 power is applied to riverboats, (ii) adopt rules for

6 administering the provisions of this Act or the Chicago

7 Casino Development Authority Act, (iii) adopt standards

8 for the licensing of all persons involved with a casino or

9 electronic gaming facility, (iv) investigate alleged

10 violations of this Act by any person involved with a casino

11 or electronic gaming facility, and (v) require that

12 records, including financial or other statements of any

13 casino or electronic gaming facility, shall be kept in such

14 manner as prescribed by the Board.

15 (23) To supervise and regulate the Chicago Casino

16 Development Authority in accordance with the Chicago

17 Casino Development Authority Act and the provisions of this

18 Act.

19 (24) ~~(21)~~ To take any other action as may be reasonable

20 or appropriate to enforce this Act, the Chicago Casino

21 Development Authority Act, and the rules adopted by the

22 Board under both Acts ~~and regulations hereunder~~.

23 All Board powers enumerated in this Section in relation to

24 licensees shall apply equally to the holder of any casino

25 management contract entered into pursuant to the Chicago Casino

26 Development Authority Act.

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1 (d) The Board may seek and shall receive the cooperation of

2 the Department of State Police in conducting background

3 investigations of applicants and in fulfilling its

4 responsibilities under this Section. Costs incurred by the

5 Department of State Police as a result of such cooperation

6 shall be paid by the Board in conformance with the requirements

7 of Section 2605-400 of the Department of State Police Law (20

8 ILCS 2605/2605-400).

9 (e) The Board must authorize to each investigator and to

10 any other employee of the Board exercising the powers of a

11 peace officer a distinct badge that, on its face, (i) clearly

12 states that the badge is authorized by the Board and (ii)

13 contains a unique identifying number. No other badge shall be

14 authorized by the Board.

15 (Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)

16 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)

17 Sec. 5.1. Disclosure of records.

18 (a) Notwithstanding any applicable statutory provision to

19 the contrary, the Board shall, on written request from any

20 person, provide information furnished by an applicant or

21 licensee concerning the applicant or licensee, his products,

22 services or gambling enterprises and his business holdings, as

23 follows:

24 (1) The name, business address and business telephone

25 number of any applicant or licensee.

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1 (2) An identification of any applicant or licensee

2 including, if an applicant or licensee is not an

3 individual, the names and addresses of all stockholders and

4 directors, if the entity is a corporation; the names and

5 addresses of all members, if the entity is a limited

6 liability company; the names and addresses of all partners,

7 both general and limited, if the entity is a partnership;

8 and the names and addresses of all beneficiaries, if the

9 entity is a trust ~~the state of incorporation or~~

10 ~~registration, the corporate officers, and the identity of~~

11 ~~all shareholders or participants~~. If an applicant or

12 licensee has a pending registration statement filed with

13 the Securities and Exchange Commission, only the names of

14 those persons or entities holding interest of 5% or more

15 must be provided.

16 (3) An identification of any business, including, if

17 applicable, the state of incorporation or registration, in

18 which an applicant or licensee or an applicant's or

19 licensee's spouse or children has an equity interest of

20 more than 1%. If an applicant or licensee is a corporation,

21 partnership or other business entity, the applicant or

22 licensee shall identify any other corporation, partnership

23 or business entity in which it has an equity interest of 1%

24 or more, including, if applicable, the state of

25 incorporation or registration. This information need not

26 be provided by a corporation, partnership or other business

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1 entity that has a pending registration statement filed with

2 the Securities and Exchange Commission.

3 (4) Whether an applicant or licensee has been indicted,

4 convicted, pleaded guilty or nolo contendere, or forfeited

5 bail concerning any criminal offense under the laws of any

6 jurisdiction, either felony or misdemeanor (except for

7 traffic violations), including the date, the name and

8 location of the court, arresting agency and prosecuting

9 agency, the case number, the offense, the disposition and

10 the location and length of incarceration.

11 (5) Whether an applicant or licensee has had any

12 license or certificate issued by a licensing authority in

13 Illinois or any other jurisdiction denied, restricted,

14 suspended, revoked or not renewed and a statement

15 describing the facts and circumstances concerning the

16 denial, restriction, suspension, revocation or

17 non-renewal, including the licensing authority, the date

18 each such action was taken, and the reason for each such

19 action.

20 (6) Whether an applicant or licensee has ever filed or

21 had filed against it a proceeding in bankruptcy or has ever

22 been involved in any formal process to adjust, defer,

23 suspend or otherwise work out the payment of any debt

24 including the date of filing, the name and location of the

25 court, the case and number of the disposition.

26 (7) Whether an applicant or licensee has filed, or been

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1 served with a complaint or other notice filed with any

2 public body, regarding the delinquency in the payment of,

3 or a dispute over the filings concerning the payment of,

4 any tax required under federal, State or local law,

5 including the amount, type of tax, the taxing agency and

6 time periods involved.

7 (8) A statement listing the names and titles of all

8 public officials or officers of any unit of government, and

9 relatives of said public officials or officers who,

10 directly or indirectly, own any financial interest in, have

11 any beneficial interest in, are the creditors of or hold

12 any debt instrument issued by, or hold or have any interest

13 in any contractual or service relationship with, an

14 applicant or licensee.

15 (9) Whether an applicant or licensee has made, directly

16 or indirectly, any political contribution, or any loans,

17 donations or other payments, to any candidate or office

18 holder, within 5 years from the date of filing the

19 application, including the amount and the method of

20 payment.

21 (10) The name and business telephone number of the

22 counsel representing an applicant or licensee in matters

23 before the Board.

24 (11) A description of any proposed or approved

25 riverboat or casinogamingor electronic gaming operation,

26 including the type of boat, home dock or casino or

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1 electronic gaminglocation, expected economic benefit to

2 the community, anticipated or actual number of employees,

3 any statement from an applicant or licensee regarding

4 compliance with federal and State affirmative action

5 guidelines, projected or actual admissions and projected

6 or actual adjusted gross gaming receipts.

7 (12) A description of the product or service to be

8 supplied by an applicant for a supplier's license.

9 (b) Notwithstanding any applicable statutory provision to

10 the contrary, the Board shall, on written request from any

11 person, also provide the following information:

12 (1) The amount of the wagering tax and admission tax

13 paid daily to the State of Illinois by the holder of an

14 owner's license.

15 (2) Whenever the Board finds an applicant for an

16 owner's license unsuitable for licensing, a copy of the

17 written letter outlining the reasons for the denial.

18 (3) Whenever the Board has refused to grant leave for

19 an applicant to withdraw his application, a copy of the

20 letter outlining the reasons for the refusal.

21 (c) Subject to the above provisions, the Board shall not

22 disclose any information which would be barred by:

23 (1) Section 7 of the Freedom of Information Act; or

24 (2) The statutes, rules, regulations or

25 intergovernmental agreements of any jurisdiction.

26 (d) The Board may assess fees for the copying of

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1 information in accordance with Section 6 of the Freedom of

2 Information Act.

3 (Source: P.A. 96-1392, eff. 1-1-11.)

4 (230 ILCS 10/5.3 new)

5 Sec. 5.3. Ethical conduct.

6 (a) Officials and employees of the corporate authority of a

7 host community must carry out their duties and responsibilities

8 in such a manner as to promote and preserve public trust and

9 confidence in the integrity and conduct of gaming.

10 (b) Officials and employees of the corporate authority of a

11 host community shall not use or attempt to use his or her

12 official position to secure or attempt to secure any privilege,

13 advantage, favor, or influence for himself or herself or

14 others.

15 (c) Officials and employees of the corporate authority of a

16 host community may not have a financial interest, directly or

17 indirectly, in his or her own name or in the name of any other

18 person, partnership, association, trust, corporation, or other

19 entity in any contract or subcontract for the performance of

20 any work for a riverboat or casino that is located in the host

21 community. This prohibition shall extend to the holding or

22 acquisition of an interest in any entity identified by Board

23 action that, in the Board's judgment, could represent the

24 potential for or the appearance of a financial interest. The

25 holding or acquisition of an interest in such entities through

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1 an indirect means, such as through a mutual fund, shall not be

2 prohibited, except that the Board may identify specific

3 investments or funds that, in its judgment, are so influenced

4 by gaming holdings as to represent the potential for or the

5 appearance of a conflict of interest.

6 (d) Officials and employees of the corporate authority of a

7 host community may not accept any gift, gratuity, service,

8 compensation, travel, lodging, or thing of value, with the

9 exception of unsolicited items of an incidental nature, from

10 any person, corporation, or entity doing business with the

11 riverboat or casino that is located in the host community.

12 (e) Officials and employees of the corporate authority of a

13 host community shall not, during the period that the person is

14 an official or employee of the corporate authority or for a

15 period of 2 years immediately after leaving such office,

16 knowingly accept employment or receive compensation or fees for

17 services from a person or entity, or its parent or affiliate,

18 that has engaged in business with the riverboat or casino that

19 is located in the host community that resulted in contracts

20 with an aggregate value of at least $25,000 or if that official

21 or employee has made a decision that directly applied to the

22 person or entity, or its parent or affiliate.

23 (f) A spouse, child, or parent of an official or employee

24 of the corporate authority of a host community may not have a

25 financial interest, directly or indirectly, in his or her own

26 name or in the name of any other person, partnership,

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1 association, trust, corporation, or other entity in any

2 contract or subcontract for the performance of any work for a

3 riverboat or casino in the host community. This prohibition

4 shall extend to the holding or acquisition of an interest in

5 any entity identified by Board action that, in the judgment of

6 the Board, could represent the potential for or the appearance

7 of a conflict of interest. The holding or acquisition of an

8 interest in such entities through an indirect means, such as

9 through a mutual fund, shall not be prohibited, expect that the

10 Board may identify specific investments or funds that, in its

11 judgment, are so influenced by gaming holdings as to represent

12 the potential for or the appearance of a conflict of interest.

13 (g) A spouse, child, or parent of an official or employee

14 of the corporate authority of a host community may not accept

15 any gift, gratuity, service, compensation, travel, lodging, or

16 thing of value, with the exception of unsolicited items of an

17 incidental nature, from any person, corporation, or entity

18 doing business with the riverboat or casino that is located in

19 the host community.

20 (h) A spouse, child, or parent of an official or employee

21 of the corporate authority of a host community may not, during

22 the period that the person is an official of the corporate

23 authority or for a period of 2 years immediately after leaving

24 such office or employment, knowingly accept employment or

25 receive compensation or fees for services from a person or

26 entity, or its parent or affiliate, that has engaged in

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1 business with the riverboat or casino that is located in the

2 host community that resulted in contracts with an aggregate

3 value of at least $25,000 or if that official or employee has

4 made a decision that directly applied to the person or entity,

5 or its parent or affiliate.

6 (i) Officials and employees of the corporate authority of a

7 host community shall not attempt, in any way, to influence any

8 person or entity doing business with the riverboat or casino

9 that is located in the host community or any officer, agent, or

10 employee thereof to hire or contract with any person or entity

11 for any compensated work.

12 (j) Any communication between an official of the corporate

13 authority of a host community and any applicant for an owners

14 license in the host community, or an officer, director, or

15 employee of a riverboat or casino in the host community,

16 concerning any matter relating in any way to gaming shall be

17 disclosed to the Board. Such disclosure shall be in writing by

18 the official within 30 days after the communication and shall

19 be filed with the Board. Disclosure must consist of the date of

20 the communication, the identity and job title of the person

21 with whom the communication was made, a brief summary of the

22 communication, the action requested or recommended, all

23 responses made, the identity and job title of the person making

24 the response, and any other pertinent information. Public

25 disclosure of the written summary provided to the Board and the

26 Gaming Board shall be subject to the exemptions provided under

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1 the Freedom of Information Act.

2 This subsection (j) shall not apply to communications

3 regarding traffic, law enforcement, security, environmental

4 issues, city services, transportation, or other routine

5 matters concerning the ordinary operations of the riverboat or

6 casino. For purposes of this subsection (j), "ordinary

7 operations" means operations relating to the casino or

8 riverboat facility other than the conduct of gambling

9 activities, and "routine matters" includes the application

10 for, issuance of, renewal of, and other processes associated

11 with municipal permits and licenses.

12 (k) Any official or employee who violates any provision of

13 this Section is guilty of a Class 4 felony.

14 (l) For purposes of this Section, "host community" or "host

15 municipality" means a unit of local government that contains a

16 riverboat or casino within its borders, but does not include

17 the City of Chicago or the Chicago Casino Development

18 Authority.

19 (230 ILCS 10/6) (from Ch. 120, par. 2406)

20 Sec. 6. Application for Owners License.

21 (a) A qualified person may apply to the Board for an owners

22 license to conduct a riverboat gambling operation as provided

23 in this Act. The application shall be made on forms provided by

24 the Board and shall contain such information as the Board

25 prescribes, including but not limited to the identity of the

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1 riverboat on which such gambling operation is to be conducted,

2 if applicable, and the exact location where such riverboat or

3 casino will be located ~~docked~~, a certification that the

4 riverboat will be registered under this Act at all times during

5 which gambling operations are conducted on board, detailed

6 information regarding the ownership and management of the

7 applicant, and detailed personal information regarding the

8 applicant. Any application for an owners license to be

9 re-issued on or after June 1, 2003 shall also include the

10 applicant's license bid in a form prescribed by the Board.

11 Information provided on the application shall be used as a

12 basis for a thorough background investigation which the Board

13 shall conduct with respect to each applicant. An incomplete

14 application shall be cause for denial of a license by the

15 Board.

16 (a-5) In addition to any other information required under

17 this Section, each application for an owners license must

18 include the following information:

19 (1) The history and success of the applicant and each

20 person and entity disclosed under subsection (c) of this

21 Section in developing tourism facilities ancillary to

22 gaming, if applicable.

23 (2) The likelihood that granting a license to the

24 applicant will lead to the creation of quality, living wage

25 jobs and permanent, full-time jobs for residents of the

26 State and residents of the unit of local government that is

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1 designated as the home dock of the proposed facility where

2 gambling is to be conducted by the applicant.

3 (3) The projected number of jobs that would be created

4 if the license is granted and the projected number of new

5 employees at the proposed facility where gambling is to be

6 conducted by the applicant.

7 (4) The record, if any, of the applicant and its

8 developer in meeting commitments to local agencies,

9 community-based organizations, and employees at other

10 locations where the applicant or its developer has

11 performed similar functions as they would perform if the

12 applicant were granted a license.

13 (5) Identification of adverse effects that might be

14 caused by the proposed facility where gambling is to be

15 conducted by the applicant, including the costs of meeting

16 increased demand for public health care, child care, public

17 transportation, affordable housing, and social services,

18 and a plan to mitigate those adverse effects.

19 (6) The record, if any, of the applicant and its

20 developer regarding compliance with:

21 (A) federal, state, and local discrimination, wage

22 and hour, disability, and occupational and

23 environmental health and safety laws; and

24 (B) state and local labor relations and employment

25 laws.

26 (7) The applicant's record, if any, in dealing with its

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1 employees and their representatives at other locations.

2 (8) A plan concerning the utilization of

3 minority-owned and female-owned businesses and concerning

4 the hiring of minorities and females.

5 (9) Evidence the applicant used its best efforts to

6 reach a goal of 25% ownership representation by minority

7 persons and 5% ownership representation by females.

8 (b) Applicants shall submit with their application all

9 documents, resolutions, and letters of support from the

10 governing body that represents the municipality or county

11 wherein the licensee will be located ~~dock~~.

12 (c) Each applicant shall disclose the identity of every

13 person or entity ~~, association, trust or corporation~~ having a

14 greater than 1% direct or indirect pecuniary interest in the

15 ~~riverboat~~gambling operation with respect to which the license

16 is sought. If the disclosed entity is a trust, the application

17 shall disclose the names and addresses of all ~~the~~

18 beneficiaries; if a corporation, the names and addresses of all

19 stockholders and directors; if a partnership, the names and

20 addresses of all partners, both general and limited.

21 (d) An application shall be filed and considered in

22 accordance with the rules of the Board. Each application shall

23 be accompanied by a non-refundable ~~An~~application fee of

24 $100,000. In addition, a non-refundable fee of $50,000 shall be

25 paid at the time of filing to defray the costs associated with

26 the background investigation conducted by the Board. If the

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1 costs of the investigation exceed $50,000, the applicant shall

2 pay the additional amount to the Boardwithin 7 days after

3 requested by the Board. If the costs of the investigation are

4 less than $50,000, the applicant shall receive a refund of the

5 remaining amount. All information, records, interviews,

6 reports, statements, memoranda or other data supplied to or

7 used by the Board in the course of its review or investigation

8 of an application for a license or a renewal under this Act

9 shall be privileged, strictly confidential and shall be used

10 only for the purpose of evaluating an applicant for a license

11 or a renewal. Such information, records, interviews, reports,

12 statements, memoranda or other data shall not be admissible as

13 evidence, nor discoverable in any action of any kind in any

14 court or before any tribunal, board, agency or person, except

15 for any action deemed necessary by the Board.The application

16 fee shall be deposited into the Gaming Facilities Fee Revenue

17 Fund.

18 (e) The Board shall charge each applicant a fee set by the

19 Department of State Police to defray the costs associated with

20 the search and classification of fingerprints obtained by the

21 Board with respect to the applicant's application. These fees

22 shall be paid into the State Police Services Fund.

23 (f) The licensed owner shall be the person primarily

24 responsible for the boator casino itself. Only one ~~riverboat~~

25 gambling operation may be authorized by the Board on any

26 riverboat or in any casino. The applicant must identify the

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1 ~~each~~ riverboat or premisesit intends to use and certify that

2 the riverboat or premises: (1) has the authorized capacity

3 required in this Act; (2) is accessible to persons with

4 disabilities; and (3) is fully registered and licensed in

5 accordance with any applicable laws.

6 (g) A person who knowingly makes a false statement on an

7 application is guilty of a Class A misdemeanor.

8 (Source: P.A. 99-143, eff. 7-27-15.)

9 (230 ILCS 10/7) (from Ch. 120, par. 2407)

10 Sec. 7. Owners Licenses.

11 (a) The Board shall issue owners licenses to persons or

12 entities ~~, firms or corporations~~ which apply for such licenses

13 upon payment to the Board of the non-refundable license feeas

14 provided in subsection (e) or (e-5) ~~set by the Board, upon~~

15 ~~payment of a $25,000 license fee for the first year of~~

16 ~~operation and a $5,000 license fee for each succeeding year~~ and

17 upon a determination by the Board that the applicant is

18 eligible for an owners license pursuant to this Act, the

19 Chicago Casino Development Authority Act,and the rules of the

20 Board. From the effective date of this amendatory Act of the

21 95th General Assembly until (i) 3 years after the effective

22 date of this amendatory Act of the 95th General Assembly, (ii)

23 the date any organization licensee begins to operate a slot

24 machine or video game of chance under the Illinois Horse Racing

25 Act of 1975 or this Act, (iii) the date that payments begin

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1 under subsection (c-5) of Section 13 of the Act, ~~or~~ (iv) the

2 wagering tax imposed under Section 13 of this Act is increased

3 by law to reflect a tax rate that is at least as stringent or

4 more stringent than the tax rate contained in subsection (a-3)

5 of Section 13, or (v) when an owners licensee holding a license

6 issued pursuant to Section 7.1 of this Act begins conducting

7 gaming, whichever occurs first, as a condition of licensure and

8 as an alternative source of payment for those funds payable

9 under subsection (c-5) of Section 13 of this ~~the Riverboat~~

10 ~~Gambling~~ Act, any owners licensee that holds or receives its

11 owners license on or after the effective date of this

12 amendatory Act of the 94th General Assembly, other than an

13 owners licensee operating a riverboat with adjusted gross

14 receipts in calendar year 2004 of less than $200,000,000, must

15 pay into the Horse Racing Equity Trust Fund, in addition to any

16 other payments required under this Act, an amount equal to 3%

17 of the adjusted gross receipts received by the owners licensee.

18 The payments required under this Section shall be made by the

19 owners licensee to the State Treasurer no later than 3:00

20 o'clock p.m. of the day after the day when the adjusted gross

21 receipts were received by the owners licensee. A person~~, firm~~

22 or entity ~~corporation~~is ineligible to receive an owners

23 license if:

24 (1) the person has been convicted of a felony under the

25 laws of this State, any other state, or the United States;

26 (2) the person has been convicted of any violation of

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1 Article 28 of the Criminal Code of 1961 or the Criminal

2 Code of 2012, or substantially similar laws of any other

3 jurisdiction;

4 (3) the person has submitted an application for a

5 license under this Actor the Chicago Casino Development

6 Authority Act which contains false information;

7 (4) the person is a member of the Board;

8 (5) a person defined in (1), (2), (3) or (4) is an

9 officer, director or managerial employee of theentity ~~firm~~

10 ~~or corporation~~;

11 (6) the entity ~~firm or corporation~~ employs a person

12 defined in (1), (2), (3) or (4) who participates in the

13 management or operation of gambling operations authorized

14 under this Act or the Chicago Casino Development Authority

15 Act;

16 (7) (blank); or

17 (8) a license of the person or entity ~~, firm or~~

18 ~~corporation~~issued under this Actor the Chicago Casino

19 Development Authority Act, or a license to own or operate

20 gambling facilities in any other jurisdiction, has been

21 revoked.

22 The Board is expressly prohibited from making changes to

23 the requirement that licensees make payment into the Horse

24 Racing Equity Trust Fund without the express authority of the

25 Illinois General Assembly and making any other rule to

26 implement or interpret this amendatory Act of the 95th General

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1 Assembly. For the purposes of this paragraph, "rules" is given

2 the meaning given to that term in Section 1-70 of the Illinois

3 Administrative Procedure Act.

4 (a-1) Upon approval of the members of the Chicago Casino

5 Development Board, the Chicago Casino Development Authority's

6 executive director, and the Chicago casino operator licensee,

7 the Board shall issue an owners license to the Chicago Casino

8 Development Authority that authorizes the conduct of gambling

9 operations in a casino or in an airport located in the City of

10 Chicago.

11 (b) In determining whether to grant an owners license to an

12 applicant other than the Chicago Casino Development Authority,

13 the Board shall consider:

14 (1) the character, reputation, experience and

15 financial integrity of the applicants and of any other or

16 separate person that either:

17 (A) controls, directly or indirectly, such

18 applicant, or

19 (B) is controlled, directly or indirectly, by such

20 applicant or by a person which controls, directly or

21 indirectly, such applicant;

22 (2) the facilities or proposed facilities for the

23 conduct of ~~riverboat~~gambling;

24 (3) the highest prospective total revenue to be derived

25 by the State from the conduct of~~riverboat~~ gambling;

26 (4) the extent to which the ownership of the applicant

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1 reflects the diversity of the State by including minority

2 persons, females, and persons with a disability and the

3 good faith affirmative action plan of each applicant to

4 recruit, train and upgrade minority persons, females, and

5 persons with a disability in all employment

6 classifications;

7 (5) the financial ability of the applicant to purchase

8 and maintain adequate liability and casualty insurance;

9 (6) whether the applicant has adequate capitalization

10 to provide and maintain, for the duration of a license, a

11 riverboat or casino;

12 (7) the extent to which the applicant exceeds or meets

13 other standards for the issuance of an owners license which

14 the Board may adopt by rule;~~and~~

15 (8) the ~~The~~ amount of the applicant's license bid; ~~.~~

16 (9) the extent to which the applicant or the proposed

17 host municipality plans to enter into revenue sharing

18 agreements with communities other than the host

19 municipality; and

20 (10) the extent to which the ownership of an applicant

21 includes the most qualified number of minority persons,

22 females, and persons with a disability.

23 (c) Each owners license shall specify the place where the

24 casino ~~riverboats~~shall operateor the riverboat shall operate

25 and dock.

26 (d) Each applicant shall submit with his application, on

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1 forms provided by the Board, 2 sets of his fingerprints.

2 (e) In addition to any licenses authorized under subsection

3 (e-5) of this Section, the ~~The~~ Board may issue up to 10

4 licenses authorizing the holders of such licenses to own

5 riverboats. In the application for an owners license, the

6 applicant shall state the dock at which the riverboat is based

7 and the water on which the riverboat will be located. The Board

8 shall issue 5 licenses to become effective not earlier than

9 January 1, 1991. Three of such licenses shall authorize

10 riverboat gambling on the Mississippi River, or, with approval

11 by the municipality in which the riverboat was docked on August

12 7, 2003 and with Board approval, be authorized to relocate to a

13 new location, in a municipality that (1) borders on the

14 Mississippi River or is within 5 miles of the city limits of a

15 municipality that borders on the Mississippi River and (2), on

16 August 7, 2003, had a riverboat conducting riverboat gambling

17 operations pursuant to a license issued under this Act; one of

18 which shall authorize riverboat gambling from a home dock in

19 the city of East St. Louis. One other license shall authorize

20 riverboat gambling on the Illinois Riverin Tazewell County or,

21 with Board approval, shall authorize the riverboat to relocate

22 to a new location that is no more than 10 miles away from its

23 original location, in a municipality that borders on the

24 Illinois River or is within 5 miles of the city limits of a

25 municipality that borders on the Illinois River ~~south of~~

26 ~~Marshall County~~. The Board shall issue one additional license

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1 to become effective not earlier than March 1, 1992, which shall

2 authorize riverboat gambling on the Des Plaines River in Will

3 County. The Board may issue 4 additional licenses to become

4 effective not earlier than March 1, 1992. In determining the

5 water upon which riverboats will operate, the Board shall

6 consider the economic benefit which riverboat gambling confers

7 on the State, and shall seek to assure that all regions of the

8 State share in the economic benefits of riverboat gambling.

9 In granting all licenses, the Board may give favorable

10 consideration to economically depressed areas of the State, to

11 applicants presenting plans which provide for significant

12 economic development over a large geographic area, and to

13 applicants who currently operate non-gambling riverboats in

14 Illinois. The Board shall review all applications for owners

15 licenses, and shall inform each applicant of the Board's

16 decision. The Board may grant an owners license to an applicant

17 that has not submitted the highest license bid, but if it does

18 not select the highest bidder, the Board shall issue a written

19 decision explaining why another applicant was selected and

20 identifying the factors set forth in this Section that favored

21 the winning bidder. The fee for issuance or renewal of a

22 license pursuant to this subsection (e) shall be $100,000.

23 (e-5) In addition to licenses authorized under subsection

24 (e) of this Section:

25 (1) the Board shall issue one owners license

26 authorizing the conduct of casino gambling in the City of

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1 Chicago;

2 (2) the Board may issue one owners license authorizing

3 the conduct of riverboat gambling in the City of Danville;

4 (3) the Board may issue one owners license authorizing

5 the conduct of riverboat gambling located in one of the

6 following municipalities in Lake County: Park City, North

7 Chicago, or Waukegan;

8 (4) the Board may issue one owners license authorizing

9 the conduct of riverboat gambling in the City of Rockford;

10 and

11 (5) the Board may issue one owners license authorizing

12 the conduct of riverboat gambling in a municipality that is

13 located in one of the following townships of Cook County:

14 Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township.

15 Each application for a license pursuant to this subsection

16 (e-5) shall be submitted to the Board no later than 6 months

17 after the effective date of this amendatory Act of the 100th

18 General Assembly and shall include the non-refundable

19 application fee and the non-refundable background

20 investigation fee as provided in subsection (d) of Section 6 of

21 this Act. In the event that an applicant submits an application

22 for a license pursuant to this subsection (e-5) prior to the

23 effective date of this amendatory Act of the 100th General

24 Assembly, such applicant shall submit the non-refundable

25 application fee and background investigation fee as provided in

26 subsection (d) of Section 6 of this Act no later than 6 months

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1 after the effective date of this amendatory Act of the 100th

2 General Assembly.

3 The Board shall consider issuing a license pursuant to

4 paragraphs (2) through (5) of this subsection only after the

5 corporate authority of the municipality in which the riverboat

6 shall be located has certified to the Board the following:

7 (i) that the applicant has negotiated with the

8 corporate authority in good faith;

9 (ii) that the applicant and the corporate authority

10 have mutually agreed on the permanent location of the

11 riverboat;

12 (iii) that the applicant and the corporate authority

13 have mutually agreed on the temporary location of the

14 riverboat;

15 (iv) that the applicant and the corporate authority

16 have mutually agreed on the percentage of revenues that

17 will be shared with the municipality, if any; and

18 (v) that the applicant and the corporate authority have

19 mutually agreed on any zoning, licensing, public health, or

20 other issues that are within the jurisdiction of the

21 municipality.

22 At least 7 days before the corporate authority of a

23 municipality submits a certification to the Board concerning

24 items (i) through (v) of this subsection, it shall hold a

25 public hearing to discuss items (i) through (v), as well as any

26 other details concerning the proposed riverboat in the

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1 municipality. The corporate authority must subsequently

2 memorialize the details concerning the proposed riverboat or

3 casino in a resolution that must be adopted by a majority of

4 the corporate authority before any certification is sent to the

5 Board. The Board shall not alter, amend, change, or otherwise

6 interfere with any agreement between the applicant and the

7 corporate authority of the municipality regarding the location

8 of any temporary or permanent facility.

9 (e-10) The licenses authorized under subsection (e-5) of

10 this Section shall be issued within 12 months after the date

11 the license application is submitted. If the Board does not

12 issue the licenses within that time period, then the Board

13 shall give a written explanation to the applicant as to why it

14 has not reached a determination and when it reasonably expects

15 to make a determination. The fee for the issuance or renewal of

16 a license issued pursuant to this subsection (e-10) shall be

17 $100,000. Additionally, a licensee located outside of Cook

18 County shall pay a minimum initial fee of $17,500 per gaming

19 position, and a licensee located in Cook County shall pay a

20 minimum initial fee of $30,000 per gaming position. The initial

21 fees payable under this subsection (e-10) shall be deposited

22 into the Gaming Facilities Fee Revenue Fund.

23 (e-15) Each licensee of a license authorized under

24 subsection (e-5) of this Section shall make a reconciliation

25 payment 3 years after the date the licensee begins operating in

26 an amount equal to 75% of the adjusted gross receipts for the

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1 most lucrative 12-month period of operations, minus an amount

2 equal to the initial payment per gaming position paid by the

3 specific licensee. If this calculation results in a negative

4 amount, then the licensee is not entitled to any reimbursement

5 of fees previously paid. This reconciliation payment may be

6 made in installments over a period of no more than 2 years,

7 subject to Board approval. Any installment payments shall

8 include an annual market interest rate as determined by the

9 Board. All payments by licensees under this subsection (e-15)

10 shall be deposited into the Gaming Facilities Fee Revenue Fund.

11 (e-20) In addition to any other revocation powers granted

12 to the Board under this Act, the Board may revoke the owners

13 license of a licensee, other than the Chicago Casino

14 Development Authority,which fails to begin conducting

15 gambling within 15 months of receipt of the Board's approval of

16 the application if the Board determines that license revocation

17 is in the best interests of the State.

18 (f) The first 10 owners licenses issued under this Act

19 shall permit the holder to own up to 2 riverboats and equipment

20 thereon for a period of 3 years after the effective date of the

21 license. Holders of the first 10 owners licenses must pay the

22 annual license fee for each of the 3 years during which they

23 are authorized to own riverboats.

24 (g) Upon the termination, expiration, or revocation of each

25 of the first 10 licenses, which shall be issued for a 3 year

26 period, all licenses are renewable annually upon payment of the

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1 fee and a determination by the Board that the licensee

2 continues to meet all of the requirements of this Act and the

3 Board's rules. However, for licenses renewed on or after May 1,

4 1998, including casino operator licenses,renewal shall be for

5 a period of 4 years, unless the Board sets a shorter period.

6 Notwithstanding any provision in this subsection (g) to the

7 contrary, any license that is awarded to the Chicago Casino

8 Development Authority shall not expire, but it shall be subject

9 to the provisions of this Act and the rules of the Board.

10 (h) An owners license, except for an owners license issued

11 under subsection (e-5) of this Section, shall entitle the

12 licensee to own up to 2 riverboats.

13 An owners licensee of a casino or riverboat that is located

14 in the City of Chicago pursuant to paragraph (1) of subsection

15 (e-5) of this Section shall limit the number of gaming

16 positions to 4,000 for such owner. All other owners licensees ~~A~~

17 ~~licensee~~ shall limit the number of gaming positions ~~gambling~~

18 ~~participants~~to1,600 ~~1,200~~ for any such owners license, except

19 as further provided in subsection (h-10) of this Section. The

20 initial fee for each gaming position obtained on or after the

21 effective date of this amendatory Act of the 100th General

22 Assembly shall be a minimum of $17,500 for licensees not

23 located in Cook County and a minimum of $30,000 for licensees

24 located in Cook County, in addition to the reconciliation

25 payment, as set forth in subsections (e-15) or (h-5) of this

26 Section.

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1 Each owners licensee shall reserve its gaming positions

2 within 90 days after issuance of its owners license. The Board

3 may grant an extension to this 90-day period, provided that the

4 owners licensee submits a written request and explanation as to

5 why it is unable to reserve its positions within the 90-day

6 period.

7 A licensee may operate both of its riverboats concurrently,

8 provided that the total number ofgaming positions ~~gambling~~

9 ~~participants~~ on both riverboats does not exceed the limit

10 established pursuant to this subsection and subsection (h-10)

11 of this Section~~1,200~~. Riverboats licensed to operate on the

12 Mississippi River and the Illinois River south of Marshall

13 County shall have an authorized capacity of at least 500

14 persons. Any other riverboat licensed under this Act shall have

15 an authorized capacity of at least 400 persons.

16 (h-5) An owners licensee who conducted gambling operations

17 prior to January 1, 2012 and purchases positions pursuant to

18 subsection (h-10) of this Section on or after the effective

19 date of this amendatory Act of the 100th General Assembly must

20 pay a minimum initial fee of $17,500 per gaming position if the

21 licensee is located outside Cook County and a minimum initial

22 fee of $30,000 per gaming position if the licensee is located

23 in Cook County, as stated in subsection (h) of this Section.

24 These initial fees shall be deposited into the Gaming

25 Facilities Fee Revenue Fund. Additionally, that owners

26 licensee shall make a reconciliation payment 3 years after any

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1 additional gaming positions obtained pursuant to subsection

2 (h-10) begin operating in an amount equal to 75% of the owners

3 licensee's average gross receipts for the most lucrative

4 12-month period of operations minus an amount equal to the

5 initial fee that the owners licensee paid per additional gaming

6 position. For purposes of this subsection (h-5), "average gross

7 receipts" means (i) the increase in adjusted gross receipts for

8 the most lucrative 12-month period of operations over the

9 adjusted gross receipts for 2017, multiplied by (ii) the

10 percentage derived by dividing the number of additional gaming

11 positions that an owners licensee had obtained pursuant to

12 subsection (h-10) by the total number of gaming positions

13 operated by the owners licensee. If this calculation results in

14 a negative amount, then the owners licensee is not entitled to

15 any reimbursement of fees previously paid. This reconciliation

16 payment may be made in installments over a period of no more

17 than 2 years, subject to Board approval. Any installment

18 payments shall include an annual market interest rate as

19 determined by the Board. These reconciliation payments shall be

20 deposited into the Gaming Facilities Fee Revenue Fund.

21 (h-10) For owners licensees authorized under paragraphs

22 (2) through (5) of subsection (e-5) of this Section, the

23 application for such new owners licenses shall ask the

24 applicants to stipulate in their applications the number of

25 gaming positions each applicant would like to reserve, up to

26 1,600 gaming positions. Once the last winning applicant for

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1 each of these owners licenses has been selected by the Board,

2 the Board shall publish the number of gaming positions reserved

3 and unreserved by each winning applicant, shall accept requests

4 for additional gaming positions from any winning applicants or

5 owners licensee who initially reserved 1,600 gaming positions,

6 and shall allocate expeditiously the unreserved gaming

7 positions to such requesting winning applicants or owners

8 licensees in a manner to maximize revenue to the State;

9 provided, however, that no owners licensee (other than the

10 Chicago Casino Development Authority) shall obtain more than

11 2,000 positions total. The Board may allocate any such unused

12 gaming positions through a competitive bidding process

13 pursuant to Section 7.5 of this Act.

14 In the event that not all of the unreserved gaming

15 positions described in the first and second paragraphs of this

16 subsection (h-10) were requested by owners licensees and

17 applicants, then until there are no longer unreserved gaming

18 positions, the Board periodically shall govern a process to

19 allocate the unreserved gaming positions in a manner to

20 maximize revenue to the State.

21 Unreserved gaming positions retained from and allocated to

22 owners licensees by the Board pursuant to this subsection

23 (h-10) shall not be allocated to electronic gaming licensees

24 pursuant to subsection (e) of Section 7.7 of this Act.

25 (i) A licensed owner is authorized to apply to the Board

26 for and, if approved therefor, to receive all licenses from the

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1 Board necessary for the operation of a riverboator a casino,

2 including a liquor license, a license to prepare and serve food

3 for human consumption, and other necessary licenses. All use,

4 occupation and excise taxes which apply to the sale of food and

5 beverages in this State and all taxes imposed on the sale or

6 use of tangible personal property apply to such sales aboard

7 the riverboat or in the casino.

8 (j) The Board may issue or re-issue a license authorizing a

9 riverboat to dock in a municipality or approve a relocation

10 under Section 11.2 only if, prior to the issuance or

11 re-issuance of the license or approval, the governing body of

12 the municipality in which the riverboat will dock has by a

13 majority vote approved the docking of riverboats in the

14 municipality. The Board may issue or re-issue a license

15 authorizing a riverboat to dock in areas of a county outside

16 any municipality or approve a relocation under Section 11.2

17 only if, prior to the issuance or re-issuance of the license or

18 approval, the governing body of the county has by a majority

19 vote approved of the docking of riverboats within such areas.

20 (k) An owners licensee may conduct land-based gambling

21 operations upon approval by the Board.

22 (l) An owners licensee may conduct gaming at a temporary

23 facility pending the construction of a permanent facility or

24 the remodeling or relocation of an existing facility to

25 accommodate gaming participants for up to 24 months after the

26 temporary facility begins to conduct gaming. Upon request by an

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1 owners licensee and upon a showing of good cause by the owners

2 licensee, the Board shall extend the period during which the

3 licensee may conduct gaming at a temporary facility by up to 12

4 months. The Board shall make rules concerning the conduct of

5 gaming from temporary facilities.

6 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

7 (230 ILCS 10/7.3)

8 Sec. 7.3. State conduct of gambling operations.

9 (a) If, after reviewing each application for a re-issued

10 license, the Board determines that the highest prospective

11 total revenue to the State would be derived from State conduct

12 of the gambling operation in lieu of re-issuing the license,

13 the Board shall inform each applicant of its decision. The

14 Board shall thereafter have the authority, without obtaining an

15 owners license, to conductcasino or riverboat gambling

16 operations as previously authorized by the terminated,

17 expired, revoked, or nonrenewed license through a licensed

18 manager selected pursuant to an open and competitive bidding

19 process as set forth in Section 7.5 and as provided in Section

20 7.4.

21 (b) The Board may locate any casino or riverboat on which a

22 gambling operation is conducted by the State in any home dock

23 or otherlocation authorized by Section 3(c) upon receipt of

24 approval from a majority vote of the governing body of the

25 municipality or county, as the case may be, in which the

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1 riverboat will dock.

2 (c) The Board shall have jurisdiction over and shall

3 supervise all gambling operations conducted by the State

4 provided for in this Act and the Chicago Casino Development

5 Authority Actand shall have all powers necessary and proper to

6 fully and effectively execute the provisions of this Actand

7 the Chicago Casino Development Authority Act relating to

8 gambling operations conducted by the State.

9 (d) The maximum number of owners licenses authorized under

10 Section 7~~7(e)~~shall be reduced by one for each instance in

11 which the Board authorizes the State to conduct acasino or

12 riverboat gambling operation under subsection (a) in lieu of

13 re-issuing a license to an applicant under Section 7.1.

14 (Source: P.A. 93-28, eff. 6-20-03.)

15 (230 ILCS 10/7.5)

16 Sec. 7.5. Competitive Bidding. When the Board determines

17 that (i)it will re-issue an owners license pursuant to an open

18 and competitive bidding process, as set forth in Section 7.1,

19 (ii) ~~or that~~it will issue a managers license pursuant to an

20 open and competitive bidding process, as set forth in Section

21 7.4, (iii) it will issue an owners license pursuant to an open

22 and competitive bidding process, as set forth in Section 7.11,

23 or (iv) it will allocate unused gaming positions pursuant to an

24 open and competitive bidding process, as set forth in

25 subsection (h-10) of Section 7, the open and competitive

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1 bidding process shall adhere to the following procedures:

2 (1) The Board shall make applications for owners and

3 managers licenses available to the public and allow a

4 reasonable time for applicants to submit applications to the

5 Board.

6 (2) During the filing period for owners or managers license

7 applications, the Board may retain the services of an

8 investment banking firm to assist the Board in conducting the

9 open and competitive bidding process.

10 (3) After receiving all of the bid proposals, the Board

11 shall open all of the proposals in a public forum and disclose

12 the prospective owners or managers names, venture partners, if

13 any, and, in the case of applicants for owners licenses, the

14 locations of the proposed development sites.

15 (4) The Board shall summarize the terms of the proposals

16 and may make this summary available to the public.

17 (5) The Board shall evaluate the proposals within a

18 reasonable time and select no more than 3 final applicants to

19 make presentations of their proposals to the Board.

20 (6) The final applicants shall make their presentations to

21 the Board on the same day during an open session of the Board.

22 (7) As soon as practicable after the public presentations

23 by the final applicants, the Board, in its discretion, may

24 conduct further negotiations among the 3 final applicants.

25 During such negotiations, each final applicant may increase its

26 license bid or otherwise enhance its bid proposal. At the

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1 conclusion of such negotiations, the Board shall select the

2 winning proposal. In the case of negotiations for an owners

3 license, the Board may, at the conclusion of such negotiations,

4 make the determination allowed under Section 7.3(a).

5 (8) Upon selection of a winning bid, the Board shall

6 evaluate the winning bid within a reasonable period of time for

7 licensee suitability in accordance with all applicable

8 statutory and regulatory criteria.

9 (9) If the winning bidder is unable or otherwise fails to

10 consummate the transaction, (including if the Board determines

11 that the winning bidder does not satisfy the suitability

12 requirements), the Board may, on the same criteria, select from

13 the remaining bidders or make the determination allowed under

14 Section 7.3(a).

15 (Source: P.A. 93-28, eff. 6-20-03.)

16 (230 ILCS 10/7.7 new)

17 Sec. 7.7. Electronic gaming.

18 (a) The General Assembly finds that the horse racing and

19 riverboat gambling industries share many similarities and

20 collectively comprise the bulk of the State's gaming industry.

21 One feature common to both industries is that each is highly

22 regulated by the State of Illinois. The General Assembly

23 further finds, however, that despite their shared features each

24 industry is distinct from the other in that horse racing is and

25 continues to be intimately tied to Illinois' agricultural

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1 economy and is, at its core, a spectator sport. This

2 distinction requires the General Assembly to utilize different

3 methods to regulate and promote the horse racing industry

4 throughout the State. The General Assembly finds that in order

5 to promote live horse racing as a spectator sport in Illinois

6 and the agricultural economy of this State, it is necessary to

7 allow electronic gaming at Illinois race tracks as an ancillary

8 use given the success of other states in increasing live racing

9 purse accounts and improving the quality of horses

10 participating in horse race meetings.

11 (b) The Illinois Gaming Board shall award one electronic

12 gaming license to each person or entity having operating

13 control of a race track that applies under Section 56 of the

14 Illinois Horse Racing Act of 1975, subject to the application

15 and eligibility requirements of this Section. Within 60 days

16 after the effective date of this amendatory Act of the 100th

17 General Assembly, a person or entity having operating control

18 of a race track may submit an application for an electronic

19 gaming license. The application shall be made on such forms as

20 provided by the Board and shall contain such information as the

21 Board prescribes, including, but not limited to, the identity

22 of any race track at which electronic gaming will be conducted,

23 detailed information regarding the ownership and management of

24 the applicant, and detailed personal information regarding the

25 applicant. The application shall specify the number of gaming

26 positions the applicant intends to use and the place where the

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1 electronic gaming facility will operate. A person who knowingly

2 makes a false statement on an application is guilty of a Class

3 A misdemeanor.

4 Each applicant shall disclose the identity of every person

5 or entity having a direct or indirect pecuniary interest

6 greater than 1% in any race track with respect to which the

7 license is sought. If the disclosed entity is a corporation,

8 the applicant shall disclose the names and addresses of all

9 stockholders and directors. If the disclosed entity is a

10 limited liability company, the applicant shall disclose the

11 names and addresses of all members and managers. If the

12 disclosed entity is a partnership, the applicant shall disclose

13 the names and addresses of all partners, both general and

14 limited. If the disclosed entity is a trust, the applicant

15 shall disclose the names and addresses of all beneficiaries.

16 An application shall be filed and considered in accordance

17 with the rules of the Board. Each application for an electronic

18 gaming license shall include a non-refundable application fee

19 of $100,000. In addition, a non-refundable fee of $50,000 shall

20 be paid at the time of filing to defray the costs associated

21 with background investigations conducted by the Board. If the

22 costs of the background investigation exceed $50,000, the

23 applicant shall pay the additional amount to the Board within 7

24 days after a request by the Board. If the costs of the

25 investigation are less than $50,000, the applicant shall

26 receive a refund of the remaining amount. All information,

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1 records, interviews, reports, statements, memoranda, or other

2 data supplied to or used by the Board in the course of this

3 review or investigation of an applicant for an electronic

4 gaming license under this Act shall be privileged and strictly

5 confidential and shall be used only for the purpose of

6 evaluating an applicant for an electronic gaming license or a

7 renewal. Such information, records, interviews, reports,

8 statements, memoranda, or other data shall not be admissible as

9 evidence nor discoverable in any action of any kind in any

10 court or before any tribunal, board, agency or person, except

11 for any action deemed necessary by the Board. The application

12 fee shall be deposited into the Gaming Facilities Fee Revenue

13 Fund.

14 Each applicant shall submit with his or her application, on

15 forms provided by the Board, 2 sets of his or her fingerprints.

16 The Board shall charge each applicant a fee set by the

17 Department of State Police to defray the costs associated with

18 the search and classification of fingerprints obtained by the

19 Board with respect to the applicant's application. This fee

20 shall be paid into the State Police Services Fund.

21 (c) The Board shall determine within 120 days after

22 receiving an application for an electronic gaming license

23 whether to grant an electronic gaming license to the applicant.

24 If the Board does not make a determination within that time

25 period, then the Board shall give a written explanation to the

26 applicant as to why it has not reached a determination and when

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1 it reasonably expects to make a determination.

2 The electronic gaming licensee shall purchase up to the

3 amount of electronic gaming positions authorized under this Act

4 within 120 days after receiving its electronic gaming license.

5 If an electronic gaming licensee is prepared to purchase the

6 electronic gaming positions, but is temporarily prohibited

7 from doing so by order of a court of competent jurisdiction or

8 the Board, then the 120-day period is tolled until a resolution

9 is reached.

10 An electronic gaming license shall authorize its holder to

11 conduct electronic gaming at its race track at the following

12 times:

13 (1) On days when it conducts live racing at the track

14 where its electronic gaming facility is located, from 8:00

15 a.m. until 3:00 a.m. on the following day.

16 (2) On days when it is scheduled to conduct simulcast

17 wagering on races run in the United States, from 8:00 a.m.

18 until 3:00 a.m. on the following day.

19 Additionally, the Board may extend these days of operation

20 and hours upon request by an organization licensee as the Board

21 sees fit.

22 A license to conduct electronic gaming and any renewal of

23 an electronic gaming license shall authorize electronic gaming

24 for a period of 4 years. The fee for the issuance or renewal of

25 an electronic gaming license shall be $100,000.

26 (d) To be eligible to conduct electronic gaming, a person

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1 or entity having operating control of a race track must (i)

2 obtain an electronic gaming license, (ii) hold an organization

3 license under the Illinois Horse Racing Act of 1975, (iii) hold

4 an inter-track wagering license, (iv) pay an initial fee of

5 $30,000 per gaming position from electronic gaming licensees

6 where electronic gaming is conducted in Cook County and $17,500

7 for electronic gaming licensees where electronic gaming is

8 located outside of Cook County before beginning to conduct

9 electronic gaming plus make the reconciliation payment

10 required under subsection (i), (v) conduct at least 240 live

11 races at each track per year or for a licensee that is only

12 authorized 350 gaming positions pursuant to subsection (d) of

13 Section 7.7 of this Act, have a fully operational facility

14 running at least 96 live races over a period of at least 15

15 days per year until such time as the total number of gaming

16 positions is increased to 900, (vi) meet the requirements of

17 subsection (a) of Section 56 of the Illinois Horse Racing Act

18 of 1975, (vii) for organization licensees conducting

19 standardbred race meetings that had an open backstretch in

20 2009, keep backstretch barns and dormitories open and

21 operational year-round unless a lesser schedule is mutually

22 agreed to by the organization licensee and the horsemen's

23 association racing at that organization licensee's race

24 meeting, (viii) for organization licensees conducting

25 thoroughbred race meetings, the organization licensee must

26 maintain accident medical expense liability insurance coverage

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1 of $1,000,000 for jockeys, and (ix) meet all other requirements

2 of this Act that apply to owners licensees. Only those persons

3 or entities (or its successors or assigns) that had operating

4 control of a race track and held an inter-track wagering

5 license authorized by the Illinois Racing Board in 2009 are

6 eligible.

7 An electronic gaming licensee may enter into a joint

8 venture with a licensed owner to own, manage, conduct, or

9 otherwise operate the electronic gaming licensee's electronic

10 gaming facilities, unless the electronic gaming licensee has a

11 parent company or other affiliated company that is, directly or

12 indirectly, wholly owned by a parent company that is also

13 licensed to conduct electronic gaming, casino gaming, or their

14 equivalent in another state.

15 All payments by licensees under this subsection (c) shall

16 be deposited into the Gaming Facilities Fee Revenue Fund.

17 (e) A person or entity is ineligible to receive an

18 electronic gaming license if:

19 (1) the person or entity has been convicted of a felony

20 under the laws of this State, any other state, or the

21 United States, including a conviction under the Racketeer

22 Influenced and Corrupt Organizations Act;

23 (2) the person or entity has been convicted of any

24 violation of Article 28 of the Criminal Code of 2012, or

25 substantially similar laws of any other jurisdiction;

26 (3) the person or entity has submitted an application

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1 for a license under this Act that contains false

2 information;

3 (4) the person is a member of the Board;

4 (5) a person defined in (1), (2), (3), or (4) of this

5 subsection (e) is an officer, director, or managerial

6 employee of the entity;

7 (6) the person or entity employs a person defined in

8 (1), (2), (3), or (4) of this subsection (e) who

9 participates in the management or operation of gambling

10 operations authorized under this Act; or

11 (7) a license of the person or entity issued under this

12 Act or a license to own or operate gambling facilities in

13 any other jurisdiction has been revoked.

14 (f) The Board may approve electronic gaming positions

15 statewide as provided in this Section. The authority to operate

16 electronic gaming positions under this Section shall be

17 allocated as follows: up to 1,200 gaming positions for any

18 electronic gaming licensee in Cook County whose electronic

19 gaming license originates with an organization licensee that

20 conducted live racing in calendar year 2010; up to 900 gaming

21 positions for any electronic gaming licensee outside of Cook

22 County whose electronic gaming license originates with an

23 organization licensee that conducted live racing in calendar

24 year 2010; and up to 350 gaming positions for any electronic

25 gaming licensee whose electronic gaming license originates

26 with an organization licensee that did not conduct live racing

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1 in calendar year 2010, which shall increase to 900 gaming

2 positions in the calendar year following the year in which the

3 electronic gaming licensee conducts 96 live races.

4 (g) Each applicant for an electronic gaming license shall

5 specify in its application for licensure the number of gaming

6 positions it will operate, up to the applicable limitation set

7 forth in subsection (f) of this Section. Any unreserved gaming

8 positions that are not specified shall be forfeited and

9 retained by the Board. For the purposes of this subsection (g),

10 an electronic gaming licensee that did not conduct live racing

11 in 2010 may reserve up to 900 positions and shall not be

12 penalized under this Section for not operating those positions

13 until it meets the requirements of subsection (f) of this

14 Section, but such licensee shall not request unreserved gaming

15 positions under this subsection (g) until its 900 positions are

16 all operational.

17 Thereafter, the Board shall publish the number of

18 unreserved electronic gaming positions and shall accept

19 requests for additional positions from any electronic gaming

20 licensee that initially reserved all of the positions that were

21 offered. The Board shall allocate expeditiously the unreserved

22 electronic gaming positions to requesting electronic gaming

23 licensees in a manner that maximizes revenue to the State. The

24 Board may allocate any such unused electronic gaming positions

25 pursuant to an open and competitive bidding process, as

26 provided under Section 7.5 of this Act. This process shall

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1 continue until all unreserved gaming positions have been

2 purchased. All positions obtained pursuant to this process and

3 all positions the electronic gaming licensee specified it would

4 operate in its application must be in operation within 18

5 months after they were obtained or the electronic gaming

6 licensee forfeits the right to operate those positions, but is

7 not entitled to a refund of any fees paid. The Board may, after

8 holding a public hearing, grant extensions so long as the

9 electronic gaming licensee is working in good faith to make the

10 positions operational. The extension may be for a period of 6

11 months. If, after the period of the extension, the electronic

12 gaming licensee has not made the positions operational, then

13 another public hearing must be held by the Board before it may

14 grant another extension.

15 Unreserved gaming positions retained from and allocated to

16 electronic gaming licensees by the Board pursuant to this

17 subsection (g) shall not be allocated to owners licensees

18 pursuant to subsection (h-10) of Section 7 of this Act.

19 For the purpose of this subsection (g), the unreserved

20 gaming positions for each electronic gaming licensee shall be

21 the applicable limitation set forth in subsection (f) of this

22 Section, less the number of reserved gaming positions by such

23 electronic gaming licensee, and the total unreserved gaming

24 positions shall be the aggregate of the unreserved gaming

25 positions for all electronic gaming licensees.

26 (h) Subject to the approval of the Illinois Gaming Board,

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1 an electronic gaming licensee may make modification or

2 additions to any existing buildings and structures to comply

3 with the requirements of this Act. The Illinois Gaming Board

4 shall make its decision after consulting with the Illinois

5 Racing Board. In no case, however, shall the Illinois Gaming

6 Board approve any modification or addition that alters the

7 grounds of the organizational licensee such that the act of

8 live racing is an ancillary activity to electronic gaming.

9 Electronic gaming may take place in existing structures where

10 inter-track wagering is conducted at the race track or a

11 facility within 300 yards of the race track in accordance with

12 the provisions of this Act and the Illinois Horse Racing Act of

13 1975.

14 (i) An electronic gaming licensee may conduct electronic

15 gaming at a temporary facility pending the construction of a

16 permanent facility or the remodeling or relocation of an

17 existing facility to accommodate electronic gaming

18 participants for up to 24 months after the temporary facility

19 begins to conduct electronic gaming. Upon request by an

20 electronic gaming licensee and upon a showing of good cause by

21 the electronic gaming licensee, the Board shall extend the

22 period during which the licensee may conduct electronic gaming

23 at a temporary facility by up to 12 months. The Board shall

24 make rules concerning the conduct of electronic gaming from

25 temporary facilities.

26 Electronic gaming may take place in existing structures

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1 where inter-track wagering is conducted at the race track or a

2 facility within 300 yards of the race track in accordance with

3 the provisions of this Act and the Illinois Horse Racing Act of

4 1975. Any electronic gaming conducted at a permanent facility

5 within 300 yards of the race track in accordance with this Act

6 and the Illinois Horse Racing Act of 1975 shall have an

7 all-weather egress connecting the electronic gaming facility

8 and the race track facility or, on days and hours of live

9 racing, a complimentary shuttle service between the permanent

10 electronic gaming facility and the race track facility and

11 shall not charge electronic gaming participants an additional

12 admission fee to the race track facility.

13 (j) The Illinois Gaming Board must adopt emergency rules in

14 accordance with Section 5-45 of the Illinois Administrative

15 Procedure Act as necessary to ensure compliance with the

16 provisions of this amendatory Act of the 100th General Assembly

17 concerning electronic gaming. The adoption of emergency rules

18 authorized by this subsection (j) shall be deemed to be

19 necessary for the public interest, safety, and welfare.

20 (k) Each electronic gaming licensee who obtains electronic

21 gaming positions must make a reconciliation payment 3 years

22 after the date the electronic gaming licensee begins operating

23 the positions in an amount equal to 75% of the difference

24 between its adjusted gross receipts from electronic gaming and

25 amounts paid to its purse accounts pursuant to item (1) of

26 subsection (b) of Section 56 of the Illinois Horse Racing Act

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1 of 1975 for the 12-month period for which such difference was

2 the largest, minus an amount equal to the initial per position

3 fee paid by the electronic gaming licensee. If this calculation

4 results in a negative amount, then the electronic gaming

5 licensee is not entitled to any reimbursement of fees

6 previously paid. This reconciliation payment may be made in

7 installments over a period of no more than 2 years, subject to

8 Board approval. Any installment payments shall include an

9 annual market interest rate as determined by the Board.

10 All payments by licensees under this subsection (i) shall

11 be deposited into the Gaming Facilities Fee Revenue Fund.

12 (l) As soon as practical after a request is made by the

13 Illinois Gaming Board, to minimize duplicate submissions by the

14 applicant, the Illinois Racing Board must provide information

15 on an applicant for an electronic gaming license to the

16 Illinois Gaming Board.

17 (m) Subject to the approval of the Illinois Gaming Board,

18 an organization licensee that has received an electronic gaming

19 license under this Act and has operating control of a race

20 track facility located in Cook County may relocate its race

21 track facility as follows:

22 (1) the organization licensee may relocate within a

23 3-mile radius of its existing race track facility so long

24 as the organization licensee remains in Cook County and

25 submits its plan to construct a new structure to conduct

26 electronic gaming operations; and

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1 (2) the organization licensee may not relocate within a

2 5-mile radius of a riverboat if the owners license was

3 issued prior to December 31, 2011.

4 The relocation must include the race track facility, including

5 the race track operations used to conduct live racing and the

6 electronic gaming facility in its entirety. For the purposes of

7 this subsection (m), "race track facility" means all operations

8 conducted on the race track property for which it was awarded a

9 license for pari-mutuel wagering and live racing in the year

10 2010, except for the real estate itself. The Illinois Gaming

11 Board shall make its decision after consulting with the

12 Illinois Racing Board, and any relocation application shall be

13 subject to all of the provisions of this Act and the Illinois

14 Horse Racing Act of 1975.

15 (230 ILCS 10/7.8 new)

16 Sec. 7.8. Home rule. The regulation and licensing of

17 electronic gaming and electronic gaming licensees are

18 exclusive powers and functions of the State. A home rule unit

19 may not regulate or license electronic gaming or electronic

20 gaming licensees. This Section is a denial and limitation of

21 home rule powers and functions under subsection (h) of Section

22 6 of Article VII of the Illinois Constitution.

23 (230 ILCS 10/7.9 new)

24 Sec. 7.9. Casino operator license.

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1 (a) A qualified person may apply to the Board for a casino

2 operator license to operate and manage any gambling operation

3 conducted by the Authority. The application shall be made on

4 forms provided by the Board and shall contain such information

5 as the Board prescribes, including but not limited to

6 information required in Sections 6(a), (b), and (c) and

7 information relating to the applicant's proposed price to

8 manage the Authority's gambling operations and to provide the

9 casino, gambling equipment, and supplies necessary to conduct

10 Authority gambling operations. The application shall also

11 include a non-refundable application fee of $100,000. This

12 application fee shall be deposited into the Gaming Facilities

13 Fee Revenue Fund.

14 (b) A person or entity is ineligible to receive a casino

15 operator license if:

16 (1) the person has been convicted of a felony under the

17 laws of this State, any other state, or the United States;

18 (2) the person has been convicted of any violation of

19 Article 28 of the Criminal Code of 2012, or substantially

20 similar laws of any other jurisdiction;

21 (3) the person has submitted an application for a

22 license under this Act or the Chicago Casino Development

23 Authority Act which contains false information;

24 (4) the person is a member of the Board or the Chicago

25 Casino Development Board or the person is an official or

26 employee of the Chicago Casino Development Authority or the

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1 City of Chicago;

2 (5) a person defined in (1), (2), (3), or (4) is an

3 officer, director, or managerial employee of the entity;

4 (6) the entity employs a person defined in (1), (2),

5 (3), or (4) who participates in the management or operation

6 of gambling operations authorized under this Act; or

7 (7) a license of the person or entity issued under this

8 Act, or a license to own or operate gambling facilities in

9 any other jurisdiction, has been revoked.

10 (c) In determining whether to grant a casino operator

11 license, the Board shall consider:

12 (1) the character, reputation, experience and

13 financial integrity of the applicants and of any other or

14 separate person that either:

15 (A) controls, directly or indirectly, such

16 applicant, or

17 (B) is controlled, directly or indirectly, by such

18 applicant or by a person which controls, directly or

19 indirectly, such applicant;

20 (2) the facilities or proposed facilities for the

21 conduct of gambling;

22 (3) the preference of the municipality in which the

23 licensee will operate;

24 (4) the extent to which the ownership of the applicant

25 reflects the diversity of the State by including minority

26 persons and females and the good faith affirmative action

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1 plan of each applicant to recruit, train, and upgrade

2 minority persons and females in all employment

3 classifications;

4 (5) the financial ability of the applicant to purchase

5 and maintain adequate liability and casualty insurance;

6 (6) whether the applicant has adequate capitalization

7 to provide and maintain, for the duration of a license, a

8 casino; and

9 (7) the extent to which the applicant exceeds or meets

10 other standards for the issuance of a casino operator

11 license that the Board may adopt by rule.

12 (d) Each applicant shall submit with his or her

13 application, on forms prescribed by the Board, 2 sets of his or

14 her fingerprints. The Board shall charge each applicant a fee

15 set by the Department of State Police to defray the costs

16 associated with the search and classification of fingerprints

17 obtained by the Board with respect to the applicant's

18 application. This fee shall be paid into the State Police

19 Services Fund.

20 (e) A person who knowingly makes a false statement on an

21 application is guilty of a Class A misdemeanor.

22 (f) The Board shall charge each applicant a non-refundable

23 fee of $50,000 to defray the costs associated with the

24 background investigation conducted by the Board. This fee shall

25 be exclusive of any other fee or fees charged in connection

26 with an application for and, if applicable, the issuance of, a

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1 casino operator license. If the costs of the investigation

2 exceed $50,000, the Board shall immediately notify the

3 applicant of the additional amount owed, payment of which must

4 be submitted to the Board within 7 days after such

5 notification. All information, records, interviews, reports,

6 statements, memoranda, or other data supplied to or used by the

7 Board in the course of its review or investigation of an

8 application for a license or a renewal under this Act shall be

9 privileged and strictly confidential and shall be used only for

10 the purpose of evaluating an applicant for a license or a

11 renewal. Such information, records, interviews, reports,

12 statements, memoranda, or other data shall not be admissible as

13 evidence, nor discoverable in any action of any kind in any

14 court or before any tribunal, board, agency, or person, except

15 for any action deemed necessary by the Board.

16 (g) The casino operator license shall be issued only upon

17 proof that the applicant has entered into a labor peace

18 agreement with each labor organization that is actively engaged

19 in representing and attempting to represent casino and

20 hospitality industry workers in this State. The labor peace

21 agreement must be a valid and enforceable agreement under 29

22 U.S.C. 185 that protects the city's and State's revenues from

23 the operation of the casino facility by prohibiting the labor

24 organization and its members from engaging in any picketing,

25 work stoppages, boycotts, or any other economic interference

26 with the casino facility for at least the first 5 years of the

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1 casino license and must cover all operations at the casino

2 facility that are conducted by lessees or tenants or under

3 management agreements.

4 (h) The casino operator license shall be for a term of 4

5 years, shall be renewable by the Board, and shall contain such

6 terms and provisions as the Board deems necessary to protect or

7 enhance the credibility and integrity of State gambling

8 operations, achieve the highest prospective total revenue to

9 the State, and otherwise serve the interests of the citizens of

10 Illinois. The Board may suspend, restrict, or revoke the

11 license:

12 (1) for violation of any provision of this Act;

13 (2) for violation of any rules of the Board;

14 (3) for any cause which, if known to the Board, would

15 have disqualified the applicant from receiving the

16 license; or

17 (4) for any other just cause.

18 (230 ILCS 10/7.10 new)

19 Sec. 7.10. Diversity program.

20 (a) Each owners licensee, electronic gaming licensee,

21 casino operator licensee, and suppliers licensee shall

22 establish and maintain a diversity program to ensure

23 non-discrimination in the award and administration of

24 contracts. The programs shall establish goals of awarding not

25 less than 20% of the annual dollar value of all contracts,

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1 purchase orders, or other agreements to minority-owned

2 businesses and 5% of the annual dollar value of all contracts

3 to female-owned businesses.

4 (b) Each owners licensee, electronic gaming licensee,

5 casino operator licensee, and suppliers licensee shall

6 establish and maintain a diversity program designed to promote

7 equal opportunity for employment. The program shall establish

8 hiring goals as the Board and each licensee determines

9 appropriate. The Board shall monitor the progress of the gaming

10 licensee's progress with respect to the program's goals.

11 (c) No later than May 31 of each year, each licensee shall

12 report to the Board the number of respective employees and the

13 number of their respective employees who have designated

14 themselves as members of a minority group and gender. In

15 addition, all licensees shall submit a report with respect to

16 the minority-owned and female-owned businesses program created

17 in this Section to the Board.

18 (230 ILCS 10/7.11 new)

19 Sec. 7.11. Annual report on diversity.

20 (a) Each licensee that receives a license under Sections 7,

21 7.1, and 7.7 shall execute and file a report with the Board no

22 later than December 31 of each year that shall contain, but not

23 be limited to, the following information:

24 (i) a good faith affirmative action plan to recruit,

25 train, and upgrade minority persons, females, and persons

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1 with a disability in all employment classifications;

2 (ii) the total dollar amount of contracts that were

3 awarded to businesses owned by minority persons, females,

4 and persons with a disability;

5 (iii) the total number of businesses owned by minority

6 persons, females, and persons with a disability that were

7 utilized by the licensee;

8 (iv) the utilization of businesses owned by minority

9 persons, females, and persons with disabilities during the

10 preceding year; and

11 (v) the outreach efforts used by the licensee to

12 attract investors and businesses consisting of minority

13 persons, females, and persons with a disability.

14 (b) The Board shall forward a copy of each licensee's

15 annual reports to the General Assembly no later than February 1

16 of each year.

17 (230 ILCS 10/7.12 new)

18 Sec. 7.12. Issuance of new owners licenses.

19 (a) Except for the owners license issued to the Chicago

20 Casino Development Authority, owners licenses newly authorized

21 pursuant to this amendatory Act of the 100th General Assembly

22 may be issued by the Board to a qualified applicant pursuant to

23 an open and competitive bidding process, as set forth in

24 Section 7.5, and subject to the maximum number of authorized

25 licenses set forth in subsection (e-5) of Section 7 of this

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1 Act.

2 (b) To be a qualified applicant, a person or entity may not

3 be ineligible to receive an owners license under subsection (a)

4 of Section 7 of this Act and must submit an application for an

5 owners license that complies with Section 6 of this Act.

6 (c) In determining whether to grant an owners license to an

7 applicant, the Board shall consider all of the factors set

8 forth in subsections (b) and (e-10) of Section 7 of this Act,

9 as well as the amount of the applicant's license bid. The Board

10 may grant the owners license to an applicant that has not

11 submitted the highest license bid, but if it does not select

12 the highest bidder, the Board shall issue a written decision

13 explaining why another applicant was selected and identifying

14 the factors set forth in subsections (b) and (e-10) of Section

15 7 of this Act that favored the winning bidder.

16 (230 ILCS 10/7.13 new)

17 Sec. 7.13. Environmental standards. All permanent

18 casinos, riverboats, and electronic gaming facilities shall

19 consist of buildings that are certified as meeting the U.S.

20 Green Building Council's Leadership in Energy and

21 Environmental Design standards. The provisions of this Section

22 apply to a holder of an owners license, casino operator

23 license, or electronic gaming license that (i) begins

24 operations on or after January 1, 2017 or (ii) relocates its

25 facilities on or after the effective date of this amendatory

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1 Act of the 100th General Assembly.

2 (230 ILCS 10/8) (from Ch. 120, par. 2408)

3 Sec. 8. Suppliers licenses.

4 (a) The Board may issue a suppliers license to such

5 persons, firms or corporations which apply therefor upon the

6 payment of a non-refundable application fee set by the Board,

7 upon a determination by the Board that the applicant is

8 eligible for a suppliers license and upon payment of a $5,000

9 annual license fee.

10 (b) The holder of a suppliers license is authorized to sell

11 or lease, and to contract to sell or lease, gambling equipment

12 and supplies to any licensee involved in the ownership or

13 management of gambling operations.

14 (c) Gambling supplies and equipment may not be distributed

15 unless supplies and equipment conform to standards adopted by

16 rules of the Board.

17 (d) A person, firm or corporation is ineligible to receive

18 a suppliers license if:

19 (1) the person has been convicted of a felony under the

20 laws of this State, any other state, or the United States;

21 (2) the person has been convicted of any violation of

22 Article 28 of the Criminal Code of 1961 or the Criminal

23 Code of 2012, or substantially similar laws of any other

24 jurisdiction;

25 (3) the person has submitted an application for a

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1 license under this Act which contains false information;

2 (4) the person is a member of the Board;

3 (5) the entity ~~firm or corporation~~ is one in which a

4 person defined in (1), (2), (3) or (4), is an officer,

5 director or managerial employee;

6 (6) the firm or corporation employs a person who

7 participates in the management or operation of riverboat

8 gambling authorized under this Act or the Chicago Casino

9 Development Authority Act;

10 (7) the license of the person, firm or corporation

11 issued under this Actor the Chicago Casino Development

12 Authority Act, or a license to own or operate gambling

13 facilities in any other jurisdiction, has been revoked.

14 (e) Any person that supplies any equipment, devices, or

15 supplies to a licensed riverboat gambling operationor casino

16 or electronic gaming operationmust first obtain a suppliers

17 license. A supplier shall furnish to the Board a list of all

18 equipment, devices and supplies offered for sale or lease in

19 connection with gambling games authorized under this Act. A

20 supplier shall keep books and records for the furnishing of

21 equipment, devices and supplies to gambling operations

22 separate and distinct from any other business that the supplier

23 might operate. A supplier shall file a quarterly return with

24 the Board listing all sales and leases. A supplier shall

25 permanently affix its name or a distinctive logo or other mark

26 or design element identifying the manufacturer or supplier to

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1 all its equipment, devices, and supplies, except gaming chips

2 without a value impressed, engraved, or imprinted on it, for

3 gambling operations. The Board may waive this requirement for

4 any specific product or products if it determines that the

5 requirement is not necessary to protect the integrity of the

6 game. Items purchased from a licensed supplier may continue to

7 be used even though the supplier subsequently changes its name,

8 distinctive logo, or other mark or design element; undergoes a

9 change in ownership; or ceases to be licensed as a supplier for

10 any reason. Any supplier's equipment, devices or supplies which

11 are used by any person in an unauthorized gambling operation

12 shall be forfeited to the State. A holder of an owners license

13 or an electronic gaming license ~~A licensed owner~~ may own its

14 own equipment, devices and supplies. Each holder of an owners

15 license or an electronic gaming license under the Act shall

16 file an annual report listing its inventories of gambling

17 equipment, devices and supplies.

18 (f) Any person who knowingly makes a false statement on an

19 application is guilty of a Class A misdemeanor.

20 (g) Any gambling equipment, devices and supplies provided

21 by any licensed supplier may either be repaired on the

22 riverboat, in the casino, or at the electronic gaming facility

23 orremoved from the riverboat, casino, or electronic gaming

24 facility to a ~~an on-shore~~ facility owned by the holder of an

25 owners licenseor electronic gaming license for repair.

26 (Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;

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1 98-756, eff. 7-16-14.)

2 (230 ILCS 10/9) (from Ch. 120, par. 2409)

3 Sec. 9. Occupational licenses.

4 (a) The Board may issue an occupational license to an

5 applicant upon the payment of a non-refundable fee set by the

6 Board, upon a determination by the Board that the applicant is

7 eligible for an occupational license and upon payment of an

8 annual license fee in an amount to be established. To be

9 eligible for an occupational license, an applicant must:

10 (1) be at least 21 years of age if the applicant will

11 perform any function involved in gaming by patrons. Any

12 applicant seeking an occupational license for a non-gaming

13 function shall be at least 18 years of age;

14 (2) not have been convicted of a felony offense, a

15 violation of Article 28 of the Criminal Code of 1961 or the

16 Criminal Code of 2012, or a similar statute of any other

17 jurisdiction;

18 (2.5) not have been convicted of a crime, other than a

19 crime described in item (2) of this subsection (a),

20 involving dishonesty or moral turpitude, except that the

21 Board may, in its discretion, issue an occupational license

22 to a person who has been convicted of a crime described in

23 this item (2.5) more than 10 years prior to his or her

24 application and has not subsequently been convicted of any

25 other crime;

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1 (3) have demonstrated a level of skill or knowledge

2 which the Board determines to be necessary in order to

3 operate gambling aboard a riverboat, in a casino, or at an

4 electronic gaming facility; and

5 (4) have met standards for the holding of an

6 occupational license as adopted by rules of the Board. Such

7 rules shall provide that any person or entity seeking an

8 occupational license to manage gambling operationsunder

9 this Act or the Chicago Casino Development Authority Act

10 ~~hereunder~~ shall be subject to background inquiries and

11 further requirements similar to those required of

12 applicants for an owners license. Furthermore, such rules

13 shall provide that each such entity shall be permitted to

14 manage gambling operations for only one licensed owner.

15 (b) Each application for an occupational license shall be

16 on forms prescribed by the Board and shall contain all

17 information required by the Board. The applicant shall set

18 forth in the application: whether he has been issued prior

19 gambling related licenses; whether he has been licensed in any

20 other state under any other name, and, if so, such name and his

21 age; and whether or not a permit or license issued to him in

22 any other state has been suspended, restricted or revoked, and,

23 if so, for what period of time.

24 (c) Each applicant shall submit with his application, on

25 forms provided by the Board, 2 sets of his fingerprints. The

26 Board shall charge each applicant a fee set by the Department

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1 of State Police to defray the costs associated with the search

2 and classification of fingerprints obtained by the Board with

3 respect to the applicant's application. These fees shall be

4 paid into the State Police Services Fund.

5 (d) The Board may in its discretion refuse an occupational

6 license to any person: (1) who is unqualified to perform the

7 duties required of such applicant; (2) who fails to disclose or

8 states falsely any information called for in the application;

9 (3) who has been found guilty of a violation of this Actor the

10 Chicago Casino Development Authority Act or whose prior

11 gambling related license or application therefor has been

12 suspended, restricted, revoked or denied for just cause in any

13 other state; or (4) for any other just cause.

14 (e) The Board may suspend, revoke or restrict any

15 occupational licensee: (1) for violation of any provision of

16 this Act; (2) for violation of any of the rules and regulations

17 of the Board; (3) for any cause which, if known to the Board,

18 would have disqualified the applicant from receiving such

19 license; or (4) for default in the payment of any obligation or

20 debt due to the State of Illinois; or (5) for any other just

21 cause.

22 (f) A person who knowingly makes a false statement on an

23 application is guilty of a Class A misdemeanor.

24 (g) Any license issued pursuant to this Section shall be

25 valid for a period of one year from the date of issuance.

26 (h) Nothing in this Act shall be interpreted to prohibit a

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1 licensed owneror electronic gaming licensee from entering into

2 an agreement with a public community college or a school

3 approved under the Private Business and Vocational Schools Act

4 of 2012 for the training of any occupational licensee. Any

5 training offered by such a school shall be in accordance with a

6 written agreement between the licensed owner or electronic

7 gaming licensee and the school.

8 (i) Any training provided for occupational licensees may be

9 conducted eitherat the site of the gambling facility ~~on the~~

10 ~~riverboat~~ or at a school with which a licensed owner or

11 electronic gaming licenseehas entered into an agreement

12 pursuant to subsection (h).

13 (Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;

14 97-1150, eff. 1-25-13.)

15 (230 ILCS 10/11) (from Ch. 120, par. 2411)

16 Sec. 11. Conduct of gambling. Gambling may be conducted by

17 licensed owners or licensed managers on behalf of the State

18 aboard riverboats. Gambling may be conducted by electronic

19 gaming licensees at electronic gaming facilities. Gambling may

20 be conducted by a casino operator licensee at a casino.

21 Gambling authorized under this Section is ~~,~~subject to the

22 following standards:

23 (1) A licensee may conduct riverboat gambling

24 authorized under this Act regardless of whether it conducts

25 excursion cruises. A licensee may permit the continuous

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1 ingress and egress of patrons ~~passengers~~ on a riverboat not

2 used for excursion cruises for the purpose of gambling.

3 Excursion cruises shall not exceed 4 hours for a round

4 trip. However, the Board may grant express approval for an

5 extended cruise on a case-by-case basis.

6 (2) (Blank).

7 (3) Minimum and maximum wagers on games shall be set by

8 the licensee.

9 (4) Agents of the Board and the Department of State

10 Police may board and inspect any riverboat, enter and

11 inspect any portion of a casino, or enter and inspect any

12 portion of an electronic gaming facility at any time for

13 the purpose of determining whether this Actor the Chicago

14 Casino Development Authority Act is being complied with.

15 Every riverboat, if under way and being hailed by a law

16 enforcement officer or agent of the Board, must stop

17 immediately and lay to.

18 (5) Employees of the Board shall have the right to be

19 present on the riverboator in the casino or on adjacent

20 facilities under the control of the licensee and at the

21 electronic gaming facility under the control of the

22 electronic gaming licensee.

23 (6) Gambling equipment and supplies customarily used

24 in conducting riverboator casino gambling or electronic

25 gaming must be purchased or leased only from suppliers

26 licensed for such purpose under this Act. The Board may

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1 approve the transfer, sale, or lease of gambling equipment

2 and supplies by a licensed owner from or to an affiliate of

3 the licensed owner as long as the gambling equipment and

4 supplies were initially acquired from a supplier licensed

5 in Illinois.

6 (7) Persons licensed under this Act or the Chicago

7 Casino Development Authority Act shall permit no form of

8 wagering on gambling games except as permitted by this Act.

9 (8) Wagers may be received only from a person present

10 on a licensed riverboat, in a casino, or at an electronic

11 gaming facility. No person present on a licensed riverboat,

12 in a casino, or at an electronic gaming facility shall

13 place or attempt to place a wager on behalf of another

14 person who is not present on the riverboat, in a casino, or

15 at the electronic gaming facility.

16 (9) Wagering, including electronic gaming, shall not

17 be conducted with money or other negotiable currency.

18 (10) A person under age 21 shall not be permitted on an

19 area of a riverboator casino where gambling is being

20 conducted or at an electronic gaming facility where

21 gambling is being conducted, except for a person at least

22 18 years of age who is an employee of the riverboat or

23 casino gambling operation or electronic gaming operation.

24 No employee under age 21 shall perform any function

25 involved in gambling by the patrons. No person under age 21

26 shall be permitted to make a wager under this Actor the

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1 Chicago Casino Development Authority Act, and any winnings

2 that are a result of a wager by a person under age 21,

3 whether or not paid by a licensee, shall be treated as

4 winnings for the privilege tax purposes, confiscated, and

5 forfeited to the State and deposited into the Education

6 Assistance Fund.

7 (11) Gambling excursion cruises are permitted only

8 when the waterway for which the riverboat is licensed is

9 navigable, as determined by the Board in consultation with

10 the U.S. Army Corps of Engineers. This paragraph (11) does

11 not limit the ability of a licensee to conduct gambling

12 authorized under this Act when gambling excursion cruises

13 are not permitted.

14 (12) All tokens, chips or electronic cards used to make

15 wagers must be purchased(i) from a licensed owner or

16 manager, in the case of a riverboat, either aboard a

17 riverboat or at an onshore facility which has been approved

18 by the Board and which is located where the riverboat

19 docks, (ii) in the case of a casino, from a licensed owner

20 or licensed casino operator at the casino, or (iii) from an

21 electronic gaming licensee at the electronic gaming

22 facility. The tokens, chips or electronic cards may be

23 purchased by means of an agreement under which the owner,

24 ~~or~~ manager, or licensed casino operatorextends credit to

25 the patron. Such tokens, chips or electronic cards may be

26 used while aboard the riverboat, in the casino, or at the

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1 electronic gaming facility only for the purpose of making

2 wagers on gambling games.

3 (13) Notwithstanding any other Section of this Act or

4 the Chicago Casino Development Authority Act, in addition

5 to the other licenses authorized under this Actor the

6 Chicago Casino Development Authority Act, the Board may

7 issue special event licenses allowing persons who are not

8 otherwise licensed to conduct riverboat gambling to

9 conduct such gambling on a specified date or series of

10 dates. Riverboat gambling under such a license may take

11 place on a riverboat not normally used for riverboat

12 gambling. The Board shall establish standards, fees and

13 fines for, and limitations upon, such licenses, which may

14 differ from the standards, fees, fines and limitations

15 otherwise applicable under this Act or the Chicago Casino

16 Development Authority Act. All such fees shall be deposited

17 into the State Gaming Fund. All such fines shall be

18 deposited into the Education Assistance Fund, created by

19 Public Act 86-0018, of the State of Illinois.

20 (14) In addition to the above, gambling must be

21 conducted in accordance with all rules adopted by the

22 Board.

23 (Source: P.A. 96-1392, eff. 1-1-11.)

24 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)

25 Sec. 11.1. Collection of amounts owing under credit

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1 agreements. Notwithstanding any applicable statutory provision

2 to the contrary, a licensed owner, licensed ~~or~~ manager,

3 licensed casino operator, or electronic gaming licensee who

4 extends credit to a ~~riverboat~~ gambling patron or an electronic

5 gaming patronpursuant to Section 11 (a) (12) of this Act is

6 expressly authorized to institute a cause of action to collect

7 any amounts due and owing under the extension of credit, as

8 well as the licensed owner's, licensed ~~or~~ manager's, licensed

9 casino operator's, or electronic gaming licensee's costs,

10 expenses and reasonable attorney's fees incurred in

11 collection.

12 (Source: P.A. 93-28, eff. 6-20-03.)

13 (230 ILCS 10/12) (from Ch. 120, par. 2412)

14 Sec. 12. Admission tax; fees.

15 (a) A tax is hereby imposed upon admissions to riverboat

16 and casino gambling facilities ~~riverboats~~operated by licensed

17 owners authorized pursuant to this Act and the Chicago Casino

18 Development Authority Act. Until July 1, 2002, the rate is $2

19 per person admitted. From July 1, 2002 until July 1, 2003, the

20 rate is $3 per person admitted. From July 1, 2003 until August

21 23, 2005 (the effective date of Public Act 94-673), for a

22 licensee that admitted 1,000,000 persons or fewer in the

23 previous calendar year, the rate is $3 per person admitted; for

24 a licensee that admitted more than 1,000,000 but no more than

25 2,300,000 persons in the previous calendar year, the rate is $4

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1 per person admitted; and for a licensee that admitted more than

2 2,300,000 persons in the previous calendar year, the rate is $5

3 per person admitted. Beginning on August 23, 2005 (the

4 effective date of Public Act 94-673), for a licensee that

5 admitted 1,000,000 persons or fewer in calendar year 2004, the

6 rate is $2 per person admitted, and for all other licensees,

7 including licensees that were not conducting gambling

8 operations in 2004, the rate is $3 per person admitted. This

9 admission tax is imposed upon the licensed owner conducting

10 gambling.

11 (1) The admission tax shall be paid for each admission,

12 except that a person who exits a riverboat gambling

13 facility and reenters that riverboat gambling facility

14 within the same gaming day shall be subject only to the

15 initial admission tax.

16 (2) (Blank).

17 (3) The riverboat licensee may issue tax-free passes to

18 actual and necessary officials and employees of the

19 licensee or other persons actually working on the

20 riverboat.

21 (4) The number and issuance of tax-free passes is

22 subject to the rules of the Board, and a list of all

23 persons to whom the tax-free passes are issued shall be

24 filed with the Board.

25 (a-5) A fee is hereby imposed upon admissions operated by

26 licensed managers on behalf of the State pursuant to Section

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1 7.3 at the rates provided in this subsection (a-5). For a

2 licensee that admitted 1,000,000 persons or fewer in the

3 previous calendar year, the rate is $3 per person admitted; for

4 a licensee that admitted more than 1,000,000 but no more than

5 2,300,000 persons in the previous calendar year, the rate is $4

6 per person admitted; and for a licensee that admitted more than

7 2,300,000 persons in the previous calendar year, the rate is $5

8 per person admitted.

9 (1) The admission fee shall be paid for each admission.

10 (2) (Blank).

11 (3) The licensed manager may issue fee-free passes to

12 actual and necessary officials and employees of the manager

13 or other persons actually working on the riverboat.

14 (4) The number and issuance of fee-free passes is

15 subject to the rules of the Board, and a list of all

16 persons to whom the fee-free passes are issued shall be

17 filed with the Board.

18 (b) Except as provided in subsection (b-5), from ~~From~~ the

19 tax imposed under subsection (a) and the fee imposed under

20 subsection (a-5), a municipality shall receive from the State

21 $1 for each person embarking on a riverboat docked within the

22 municipality or entering a casino located within the

23 municipality, and a county shall receive $1 for each person

24 entering a casino orembarking on a riverboat docked within the

25 county but outside the boundaries of any municipality. The

26 municipality's or county's share shall be collected by the

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1 Board on behalf of the State and remitted quarterly by the

2 State, subject to appropriation, to the treasurer of the unit

3 of local government for deposit in the general fund.

4 (b-5) From the tax imposed under subsection (a) and the fee

5 imposed under subsection (a-5), $1 for each person embarking on

6 a riverboat designated in paragraph (4) of subsection (e-5) of

7 Section 7 shall be divided equally and remitted monthly,

8 subject to appropriation, to the City of Rockford and Winnebago

9 County.

10 The municipality's or county's share shall be collected by

11 the Board on behalf of the State and remitted quarterly by the

12 State, subject to appropriation, to the treasurer of the unit

13 of local government for deposit in the general fund.

14 (c) The licensed owner shall pay the entire admission tax

15 to the Board and the licensed manageror the casino operator

16 licenseeshall pay the entire admission fee to the Board. Such

17 payments shall be made daily. Accompanying each payment shall

18 be a return on forms provided by the Board which shall include

19 other information regarding admissions as the Board may

20 require. Failure to submit either the payment or the return

21 within the specified time may result in suspension or

22 revocation of the owners or managers license.

23 (c-5) A tax is imposed on admissions to electronic gaming

24 facilities at the rate of $3 per person admitted by an

25 electronic gaming licensee. The tax is imposed upon the

26 electronic gaming licensee.

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1 (1) The admission tax shall be paid for each admission,

2 except that a person who exits an electronic gaming

3 facility and reenters that electronic gaming facility

4 within the same gaming day, as the term "gaming day" is

5 defined by the Board by rule, shall be subject only to the

6 initial admission tax. The Board shall establish, by rule,

7 a procedure to determine whether a person admitted to an

8 electronic gaming facility has paid the admission tax.

9 (2) An electronic gaming licensee may issue tax-free

10 passes to actual and necessary officials and employees of

11 the licensee and other persons associated with electronic

12 gaming operations.

13 (3) The number and issuance of tax-free passes is

14 subject to the rules of the Board, and a list of all

15 persons to whom the tax-free passes are issued shall be

16 filed with the Board.

17 (4) The electronic gaming licensee shall pay the entire

18 admission tax to the Board.

19 Such payments shall be made daily. Accompanying each

20 payment shall be a return on forms provided by the Board, which

21 shall include other information regarding admission as the

22 Board may require. Failure to submit either the payment or the

23 return within the specified time may result in suspension or

24 revocation of the electronic gaming license.

25 From the tax imposed under this subsection (c-5), a

26 municipality other than the Village of Stickney or the City of

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1 Collinsville in which an electronic gaming facility is located,

2 or if the electronic gaming facility is not located within a

3 municipality, then the county in which the electronic gaming

4 facility is located, except as otherwise provided in this

5 Section, shall receive, subject to appropriation, $1 for each

6 person who enters the electronic gaming facility. For each

7 admission to the electronic gaming facility in excess of

8 1,500,000 in a year, from the tax imposed under this subsection

9 (c-5), the county in which the electronic gaming facility is

10 located shall receive, subject to appropriation, $0.30, which

11 shall be in addition to any other moneys paid to the county

12 under this Section.

13 From the tax imposed under this subsection (c-5) on an

14 electronic gaming facility located in the Village of Stickney,

15 $1 for each person who enters the electronic gaming facility

16 shall be distributed as follows, subject to appropriation:

17 $0.24 to the Village of Stickney, $0.49 to the Town of Cicero,

18 $0.05 to the City of Berwyn, and $0.17 to the Stickney Public

19 Health District, and $0.05 to the City of Bridgeview.

20 From the tax imposed under this subsection (c-5) on an

21 electronic gaming facility located in the City of Collinsville,

22 $1 for each person who enters the electronic gaming facility

23 shall be distributed as follows, subject to appropriation:

24 $0.45 to the City of Alton, $0.45 to the City of East St.

25 Louis, and $0.10 to the City of Collinsville.

26 From the tax imposed under this subsection (c-5) on an

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1 electronic gaming facility that is located in an unincorporated

2 area of Cook County and has been awarded standardbred racing

3 dates during 2011 by the Illinois Racing Board, $1 for each

4 person who enters the electronic gaming facility shall be

5 divided equally and distributed, subject to appropriation, to

6 the Village of Melrose Park, the Village of Maywood, and Cook

7 County.

8 After payments required under this subsection (c-5) have

9 been made, all remaining amounts shall be deposited into the

10 Education Assistance Fund.

11 (d) The Board shall administer and collect the admission

12 tax imposed by this Section, to the extent practicable, in a

13 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

14 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the

15 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

16 Penalty and Interest Act.

17 (Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)

18 (230 ILCS 10/13) (from Ch. 120, par. 2413)

19 Sec. 13. Wagering tax; rate; distribution.

20 (a) Until January 1, 1998, a tax is imposed on the adjusted

21 gross receipts received from gambling games authorized under

22 this Act at the rate of 20%.

23 (a-1) From January 1, 1998 until July 1, 2002, a privilege

24 tax is imposed on persons engaged in the business of conducting

25 riverboat gambling operations, based on the adjusted gross

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1 receipts received by a licensed owner from gambling games

2 authorized under this Act at the following rates:

3 15% of annual adjusted gross receipts up to and

4 including $25,000,000;

5 20% of annual adjusted gross receipts in excess of

6 $25,000,000 but not exceeding $50,000,000;

7 25% of annual adjusted gross receipts in excess of

8 $50,000,000 but not exceeding $75,000,000;

9 30% of annual adjusted gross receipts in excess of

10 $75,000,000 but not exceeding $100,000,000;

11 35% of annual adjusted gross receipts in excess of

12 $100,000,000.

13 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax

14 is imposed on persons engaged in the business of conducting

15 riverboat gambling operations, other than licensed managers

16 conducting riverboat gambling operations on behalf of the

17 State, based on the adjusted gross receipts received by a

18 licensed owner from gambling games authorized under this Act at

19 the following rates:

20 15% of annual adjusted gross receipts up to and

21 including $25,000,000;

22 22.5% of annual adjusted gross receipts in excess of

23 $25,000,000 but not exceeding $50,000,000;

24 27.5% of annual adjusted gross receipts in excess of

25 $50,000,000 but not exceeding $75,000,000;

26 32.5% of annual adjusted gross receipts in excess of

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1 $75,000,000 but not exceeding $100,000,000;

2 37.5% of annual adjusted gross receipts in excess of

3 $100,000,000 but not exceeding $150,000,000;

4 45% of annual adjusted gross receipts in excess of

5 $150,000,000 but not exceeding $200,000,000;

6 50% of annual adjusted gross receipts in excess of

7 $200,000,000.

8 (a-3) Beginning July 1, 2003, a privilege tax is imposed on

9 persons engaged in the business of conducting riverboat

10 gambling operations, other than licensed managers conducting

11 riverboat gambling operations on behalf of the State, based on

12 the adjusted gross receipts received by a licensed owner from

13 gambling games authorized under this Act at the following

14 rates:

15 15% of annual adjusted gross receipts up to and

16 including $25,000,000;

17 27.5% of annual adjusted gross receipts in excess of

18 $25,000,000 but not exceeding $37,500,000;

19 32.5% of annual adjusted gross receipts in excess of

20 $37,500,000 but not exceeding $50,000,000;

21 37.5% of annual adjusted gross receipts in excess of

22 $50,000,000 but not exceeding $75,000,000;

23 45% of annual adjusted gross receipts in excess of

24 $75,000,000 but not exceeding $100,000,000;

25 50% of annual adjusted gross receipts in excess of

26 $100,000,000 but not exceeding $250,000,000;

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1 70% of annual adjusted gross receipts in excess of

2 $250,000,000.

3 An amount equal to the amount of wagering taxes collected

4 under this subsection (a-3) that are in addition to the amount

5 of wagering taxes that would have been collected if the

6 wagering tax rates under subsection (a-2) were in effect shall

7 be paid into the Common School Fund.

8 The privilege tax imposed under this subsection (a-3) shall

9 no longer be imposed beginning on the earlier of (i) July 1,

10 2005; (ii) the first date after June 20, 2003 that riverboat

11 gambling operations are conducted pursuant to a dormant

12 license; or (iii) the first day that riverboat gambling

13 operations are conducted under the authority of an owners

14 license that is in addition to the 10 owners licenses initially

15 authorized under this Act. For the purposes of this subsection

16 (a-3), the term "dormant license" means an owners license that

17 is authorized by this Act under which no riverboat gambling

18 operations are being conducted on June 20, 2003.

19 (a-4) Beginning on the first day on which the tax imposed

20 under subsection (a-3) is no longer imposedand ending upon the

21 imposition of the privilege tax under subsection (a-5) of this

22 Section, a privilege tax is imposed on persons engaged in the

23 business of conducting riverboat or casino gambling or

24 electronic gamingoperations, other than licensed managers

25 conducting riverboat gambling operations on behalf of the

26 State, based on the adjusted gross receipts received by a

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1 licensed owner from gambling games authorized under this Act at

2 the following rates:

3 15% of annual adjusted gross receipts up to and

4 including $25,000,000;

5 22.5% of annual adjusted gross receipts in excess of

6 $25,000,000 but not exceeding $50,000,000;

7 27.5% of annual adjusted gross receipts in excess of

8 $50,000,000 but not exceeding $75,000,000;

9 32.5% of annual adjusted gross receipts in excess of

10 $75,000,000 but not exceeding $100,000,000;

11 37.5% of annual adjusted gross receipts in excess of

12 $100,000,000 but not exceeding $150,000,000;

13 45% of annual adjusted gross receipts in excess of

14 $150,000,000 but not exceeding $200,000,000;

15 50% of annual adjusted gross receipts in excess of

16 $200,000,000.

17 For the imposition of the privilege tax in this subsection

18 (a-4), amounts paid pursuant to item (1) of subsection (b) of

19 Section 56 of the Illinois Horse Racing Act of 1975 shall not

20 be included in the determination of adjusted gross receipts.

21 (a-5) Beginning in the fiscal year following the opening of

22 the casino at which gambling operations are conducted pursuant

23 to the Chicago Casino Development Authority Act, but not before

24 July 1, 2019, a privilege tax is imposed on persons engaged in

25 the business of conducting riverboat or casino gambling or

26 electronic gaming operations, other than licensed managers

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1 conducting riverboat gambling operations on behalf of the

2 State, based on the adjusted gross receipts received by such

3 licensee from the gambling games authorized under this Act and

4 the Chicago Casino Development Authority Act. The privilege tax

5 for all gambling games other than table games, including, but

6 not limited to, slot machines, video game of chance gambling,

7 and electronic gambling games shall be at the following rates:

8 10% of annual adjusted gross receipts up to and

9 including $25,000,000;

10 17.5% of annual adjusted gross receipts in excess of

11 $25,000,000 but not exceeding $50,000,000;

12 22.5% of annual adjusted gross receipts in excess of

13 $50,000,000 but not exceeding $75,000,000;

14 27.5% of annual adjusted gross receipts in excess of

15 $75,000,000 but not exceeding $100,000,000;

16 32.5% of annual adjusted gross receipts in excess of

17 $100,000,000 but not exceeding $150,000,000;

18 35% of annual adjusted gross receipts in excess of

19 $150,000,000 but not exceeding $200,000,000;

20 40% of annual adjusted gross receipts in excess of

21 $200,000,000 but not exceeding $300,000,000;

22 30% of annual adjusted gross receipts in excess of

23 $300,000,000 but not exceeding $350,000,000;

24 20% of annual adjusted gross receipts in excess of

25 $350,000,000, but not exceeding $800,000,000;

26 50% of annual adjusted gross receipts in excess of

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1 $800,000,000.

2 The privilege tax for table games shall be at the following

3 rates:

4 10% of annual adjusted gross receipts up to and

5 including $25,000,000;

6 17.5% of annual adjusted gross receipts in excess of

7 $25,000,000 but not exceeding $50,000,000;

8 22.5% of annual adjusted gross receipts in excess of

9 $50,000,000 but not exceeding $70,000,000;

10 16% of annual adjusted gross receipts in excess of

11 $70,000,000.

12 For the imposition of the privilege tax in this subsection

13 (a-5), amounts paid pursuant to item (1) of subsection (b) of

14 Section 56 of the Illinois Horse Racing Act of 1975 shall not

15 be included in the determination of adjusted gross receipts.

16 (a-6) From the effective date of this amendatory Act of the

17 100th General Assembly until June 30, 2021, an owners licensee

18 that conducted gambling operations prior to January 1, 2011

19 shall receive a dollar-for-dollar credit against the tax

20 imposed under this Section for any renovation or construction

21 costs paid by the owners licensee, but in no event shall the

22 credit exceed $2,000,000.

23 Additionally, from the effective date of this amendatory

24 Act of the 100th General Assembly until December 31, 2020, an

25 owners licensee that (i) is located within 15 miles of the

26 Missouri border, and (ii) has at least 3 riverboats, casinos,

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1 or their equivalent within a 45-mile radius, may be authorized

2 to relocate to a new location with the approval of both the

3 unit of local government designated as the home dock and the

4 Board, so long as the new location is within the same unit of

5 local government and no more than 3 miles away from its

6 original location. Such owners licensee shall receive a credit

7 against the tax imposed under this Section equal to 8% of the

8 total project costs, as approved by the Board, for any

9 renovation or construction costs paid by the owners licensee

10 for the construction of the new facility, provided that the new

11 facility is operational by July 1, 2020. In determining whether

12 or not to approve a relocation, the Board must consider the

13 extent to which the relocation will diminish the gaming

14 revenues received by other Illinois gaming facilities.

15 (a-8) Riverboat gambling operations conducted by a

16 licensed manager on behalf of the State are not subject to the

17 tax imposed under this Section.

18 (a-9) Beginning on January 1, 2018, the calculation of

19 gross receipts or adjusted gross receipts, for the purposes of

20 this Section, for a riverboat, casino, or electronic gaming

21 facility shall not include the dollar amount of non-cashable

22 vouchers, coupons, and electronic promotions redeemed by

23 wagerers upon the riverboat, in the casino, or in the

24 electronic gaming facility up to and including an amount not to

25 exceed 30% of a riverboat casino or electronic gaming

26 facility's adjusted gross receipts.

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1 The Illinois Gaming Board shall submit to the General

2 Assembly a comprehensive report no later than March 31, 2021

3 detailing, at a minimum, the effect of removing non-cashable

4 vouchers, coupons, and electronic promotions from this

5 calculation on net gaming revenues to the State in calendar

6 years 2018 through 2020, the increase or reduction in wagerers

7 as a result of removing non-cashable vouchers, coupons, and

8 electronic promotions from this calculation, the effect of the

9 tax rates in subsection (a-5) on net gaming revenues to the

10 State, and proposed modifications to the calculation.

11 (a-10) The taxes imposed by this Section shall be paid by

12 the licensed owneror the electronic gaming licensee to the

13 Board not later than 5:00 o'clock p.m. of the day after the day

14 when the wagers were made.

15 (a-15) If the privilege tax imposed under subsection (a-3)

16 is no longer imposed pursuant to item (i) of the last paragraph

17 of subsection (a-3), then by June 15 of each year, each owners

18 licensee, other than an owners licensee that admitted 1,000,000

19 persons or fewer in calendar year 2004, must, in addition to

20 the payment of all amounts otherwise due under this Section,

21 pay to the Board a reconciliation payment in the amount, if

22 any, by which the licensed owner's base amount exceeds the

23 amount of net privilege tax paid by the licensed owner to the

24 Board in the then current State fiscal year. A licensed owner's

25 net privilege tax obligation due for the balance of the State

26 fiscal year shall be reduced up to the total of the amount paid

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1 by the licensed owner in its June 15 reconciliation payment.

2 The obligation imposed by this subsection (a-15) is binding on

3 any person, firm, corporation, or other entity that acquires an

4 ownership interest in any such owners license. The obligation

5 imposed under this subsection (a-15) terminates on the earliest

6 of: (i) July 1, 2007, (ii) the first day after the effective

7 date of this amendatory Act of the 94th General Assembly that

8 riverboat gambling operations are conducted pursuant to a

9 dormant license, (iii) the first day that riverboat gambling

10 operations are conducted under the authority of an owners

11 license that is in addition to the 10 owners licenses initially

12 authorized under this Act, or (iv) the first day that a

13 licensee under the Illinois Horse Racing Act of 1975 conducts

14 gaming operations with slot machines or other electronic gaming

15 devices. The Board must reduce the obligation imposed under

16 this subsection (a-15) by an amount the Board deems reasonable

17 for any of the following reasons: (A) an act or acts of God,

18 (B) an act of bioterrorism or terrorism or a bioterrorism or

19 terrorism threat that was investigated by a law enforcement

20 agency, or (C) a condition beyond the control of the owners

21 licensee that does not result from any act or omission by the

22 owners licensee or any of its agents and that poses a hazardous

23 threat to the health and safety of patrons. If an owners

24 licensee pays an amount in excess of its liability under this

25 Section, the Board shall apply the overpayment to future

26 payments required under this Section.

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1 For purposes of this subsection (a-15):

2 "Act of God" means an incident caused by the operation of

3 an extraordinary force that cannot be foreseen, that cannot be

4 avoided by the exercise of due care, and for which no person

5 can be held liable.

6 "Base amount" means the following:

7 For a riverboat in Alton, $31,000,000.

8 For a riverboat in East Peoria, $43,000,000.

9 For the Empress riverboat in Joliet, $86,000,000.

10 For a riverboat in Metropolis, $45,000,000.

11 For the Harrah's riverboat in Joliet, $114,000,000.

12 For a riverboat in Aurora, $86,000,000.

13 For a riverboat in East St. Louis, $48,500,000.

14 For a riverboat in Elgin, $198,000,000.

15 "Dormant license" has the meaning ascribed to it in

16 subsection (a-3).

17 "Net privilege tax" means all privilege taxes paid by a

18 licensed owner to the Board under this Section, less all

19 payments made from the State Gaming Fund pursuant to subsection

20 (b) of this Section.

21 The changes made to this subsection (a-15) by Public Act

22 94-839 are intended to restate and clarify the intent of Public

23 Act 94-673 with respect to the amount of the payments required

24 to be made under this subsection by an owners licensee to the

25 Board.

26 (b) Until January 1, 1998, 25% of the tax revenue deposited

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1 in the State Gaming Fund under this Section shall be paid,

2 subject to appropriation by the General Assembly, to the unit

3 of local government which is designated as the home dock of the

4 riverboat. Beginning January 1, 1998, from the tax revenue from

5 riverboat or casino gamblingdeposited in the State Gaming Fund

6 under this Section, an amount equal to 5% of adjusted gross

7 receipts generated by a riverboat or a casino other than a

8 riverboat designated in paragraph (3) or (4) of subsection

9 (e-5) of Section 7,shall be paid monthly, subject to

10 appropriation by the General Assembly, to the unit of local

11 government in which the casino is located orthat is designated

12 as the home dock of the riverboat. From the tax revenue

13 deposited in the State Gaming Fund pursuant to riverboat or

14 casinogambling operations conducted by a licensed manager on

15 behalf of the State, an amount equal to 5% of adjusted gross

16 receipts generated pursuant to those riverboat or casino

17 gambling operations shall be paid monthly, subject to

18 appropriation by the General Assembly, to the unit of local

19 government that is designated as the home dock of the riverboat

20 upon which those riverboat gambling operations are conductedor

21 in which the casino is located. From the tax revenue from

22 riverboat or casino gambling deposited in the State Gaming Fund

23 under this Section, an amount equal to 5% of the adjusted gross

24 receipts generated by a riverboat designated in paragraph (3)

25 of subsection (e-5) of Section 7 shall be divided and remitted

26 monthly, subject to appropriation, as follows: 50% to Waukegan,

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1 25% to Park City, and 25% to North Chicago. From the tax

2 revenue from riverboat or casino gambling deposited in the

3 State Gaming Fund under this Section, an amount equal to 5% of

4 the adjusted gross receipts generated by a riverboat designated

5 in paragraph (4) of subsection (e-5) of Section 7 shall be

6 divided equally and remitted monthly, subject to

7 appropriation, to the City of Rockford and Winnebago County.

8 Units of local government may refund any portion of the payment

9 that they receive pursuant to this subsection (b) to the

10 riverboat or casino.

11 (b-5) Beginning on the effective date of this amendatory

12 Act of the 100th General Assembly, from the tax revenue

13 deposited in the State Gaming Fund under this Section, an

14 amount equal to 3% of adjusted gross receipts generated by each

15 electronic gaming facility located outside Madison County

16 shall be paid monthly, subject to appropriation by the General

17 Assembly, to a municipality other than the Village of Stickney

18 in which each electronic gaming facility is located or, if the

19 electronic gaming facility is not located within a

20 municipality, to the county in which the electronic gaming

21 facility is located, except as otherwise provided in this

22 Section. From the tax revenue deposited in the State Gaming

23 Fund under this Section, an amount equal to 3% of adjusted

24 gross receipts generated by each electronic gaming facility

25 that is located in an unincorporated area of Cook County and

26 has been awarded standardbred racing dates during 2011 by the

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1 Illinois Racing Board shall be divided equally and distributed,

2 subject to appropriation, to the Village of Melrose Park, the

3 Village of Maywood, and Cook County. From the tax revenue

4 deposited in the State Gaming Fund under this Section, an

5 amount equal to 3% of adjusted gross receipts generated by an

6 electronic gaming facility located in the Village of Stickney

7 shall be paid monthly, subject to appropriation by the General

8 Assembly, as follows: 25% to the Village of Stickney, 5% to the

9 City of Berwyn, 50% to the Town of Cicero, and 20% to the

10 Stickney Public Health District.

11 From the tax revenue deposited in the State Gaming Fund

12 under this Section, an amount equal to 5% of adjusted gross

13 receipts generated by an electronic gaming facility located in

14 the City of Collinsville shall be paid monthly, subject to

15 appropriation by the General Assembly, as follows: 45% to the

16 City of Alton, 45% to the City of East St. Louis, and 10% to the

17 City of Collinsville.

18 Municipalities and counties may refund any portion of the

19 payment that they receive pursuant to this subsection (b-5) to

20 the electronic gaming facility.

21 (b-6) Beginning on the effective date of this amendatory

22 Act of the 100th General Assembly, from the tax revenue

23 deposited in the State Gaming Fund under this Section, an

24 amount equal to 2% of adjusted gross receipts generated by an

25 electronic gaming facility located outside Madison County

26 shall be paid monthly, subject to appropriation by the General

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1 Assembly, to the county in which the electronic gaming facility

2 is located for the purposes of its criminal justice system or

3 health care system.

4 Counties may refund any portion of the payment that they

5 receive pursuant to this subsection (b-6) to the electronic

6 gaming facility.

7 (b-7) Beginning on the effective date of this amendatory

8 Act of the 100th General Assembly, from the tax revenue

9 deposited in the State Gaming Fund under this Section,

10 $5,000,000 shall be paid annually, subject to appropriation, to

11 the Department of Human Services for the administration of

12 programs to treat problem gambling.

13 (b-8) Beginning in the fiscal year following the opening of

14 the casino at which gambling operations are conducted pursuant

15 to the Chicago Casino Development Authority Act, but not before

16 July 1, 2019, from the tax revenue deposited in the State

17 Gaming Fund under this Section, $5,000,000 shall be transferred

18 into the State Fairgrounds Capital Improvements Fund annually.

19 (b-9) Beginning in the fiscal year following the opening of

20 the casino at which gambling operations are conducted pursuant

21 to the Chicago Casino Development Authority Act, but not before

22 July 1, 2019, from the tax revenue deposited in the State

23 Gaming Fund under this Section, an amount equal to 5% of the

24 wagering taxes paid by the riverboats and casino created

25 pursuant to subsection (e-5) of Section 7 shall be transferred

26 into the Depressed Communities Economic Development Fund

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1 annually.

2 (b-10) Beginning in the fiscal year following the opening

3 of the casino at which gambling operations are conducted

4 pursuant to the Chicago Casino Development Authority Act, but

5 not before July 1, 2019, from the tax revenue deposited in the

6 State Gaming Fund under this Section, an amount equal to 2.5%

7 of the wagering taxes paid by the riverboats and casino created

8 pursuant to subsection (e-5) of Section 7 shall be transferred

9 into the Latino Community Economic Development Fund annually.

10 (b-11) The State and County Fair Assistance Fund is created

11 as a special fund in the State treasury. The Fund shall be

12 administered by the Department of Agriculture. Beginning in the

13 fiscal year following the opening of the casino at which

14 gambling operations are conducted pursuant to the Chicago

15 Casino Development Authority Act, but not before July 1, 2019,

16 from the tax revenue deposited in the State Gaming Fund under

17 this Section, an amount equal to 1% of adjusted gross receipts,

18 not to exceed $3,000,000, shall be transferred into the State

19 and County Fair Assistance Fund annually. No moneys shall be

20 expended from the State and County Fair Assistance Fund except

21 as appropriated by the General Assembly. Deposits made pursuant

22 to this subsection (b-11) shall supplement, and not supplant,

23 other State funding for these purposes.

24 The Department of Agriculture shall award grants from the

25 moneys appropriated from the State and County Fair Assistance

26 Fund for the development, expansion, or support of county fairs

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1 that showcase Illinois agriculture products or byproducts. No

2 grant may exceed $100,000, except for an annual grant of

3 $1,000,000 that shall be made to the Illinois Standardbred

4 Breeders Fund and used for Illinois-bred harness racing purses

5 and the Illinois State Fair race track. Not more than one grant

6 under this Section may be made to any one county fair board.

7 Additionally, grants under this subsection (b-11) shall be

8 available to the Illinois State Fair and the DuQuoin State

9 Fair.

10 (b-12) Beginning in the fiscal year following the opening

11 of the casino at which gambling operations are conducted

12 pursuant to the Chicago Casino Development Authority Act, but

13 not before July 1, 2019, from the tax revenue from electronic

14 gaming deposited in the State Gaming Fund under this Section,

15 (i) $6,250,000 shall be transferred annually into the Partners

16 for Conservation Fund for grants to soil and water conservation

17 districts and (ii) $2,500,000 shall be transferred annually

18 into the State Cooperative Service Trust Fund for grants to the

19 State's cooperative extensions. Transfers made pursuant to

20 this subsection (b-12) shall supplement, and not supplant,

21 other State funding for these purposes.

22 (b-13) Beginning in the fiscal year following the opening

23 of the casino at which gambling operations are conducted

24 pursuant to the Chicago Casino Development Authority Act, but

25 not before July 1, 2019, from the tax revenue deposited in the

26 State Gaming Fund under this Section, $75,000 shall be paid

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1 annually, subject to appropriation, to a county forest preserve

2 district for the maintenance of a botanic garden that was

3 created by Section 43 of the Cook County Forest Preserve

4 District Act.

5 (b-14) Beginning in the fiscal year following the opening

6 of the casino at which gambling operations are conducted

7 pursuant to the Chicago Casino Development Authority Act, but

8 not before July 1, 2019, from the tax revenue deposited in the

9 State Gaming Fund under this Section, $125,000 shall be

10 transferred annually into the Illinois Racing Quarter Horse

11 Breeders Fund.

12 (b-15) From January 1, 2019 until December 31, 2021, if the

13 total amount paid to the Education Assistance Fund annually

14 pursuant to this Act will result in the Education Assistance

15 Fund receiving less revenue from the State Gaming Fund than it

16 received in calendar year 2011, an amount equal to that

17 shortfall shall be transferred from the Capital Projects Fund

18 to the Education Assistance Fund, except that no such transfer

19 shall exceed the amount deposited into the Capital Projects

20 Fund pursuant to subsection (c-4) of this Section.

21 (c) Appropriations, as approved by the General Assembly,

22 may be made from the State Gaming Fund to the Board (i) for the

23 administration and enforcement of this Act, the Chicago Casino

24 Development Authority Act, and the Video Gaming Act, (ii) for

25 distribution to the Department of State Police and to the

26 Department of Revenue for the enforcement of this Act, the

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1 Chicago Casino Development Authority Act, and the Video Gaming

2 Act, and (iii) to the Department of Human Services for the

3 administration of programs to treat problem gambling.The

4 Board's annual appropriations request must separately state

5 its funding needs for the regulation of electronic gaming,

6 riverboat gaming, casino gaming within the City of Chicago, and

7 video gaming. From the tax revenue deposited in the Gaming

8 Facilities Fee Revenue Fund, the first $50,000,000 shall be

9 paid to the Board, subject to appropriation, for the

10 administration and enforcement of the provisions of this

11 amendatory Act of the 100th General Assembly.

12 (c-3) Appropriations, as approved by the General Assembly,

13 may be made from the tax revenue deposited into the State

14 Gaming Fund from electronic gaming pursuant to this Section for

15 the administration and enforcement of this Act.

16 (c-4) After payments required under subsection (b-5), (c),

17 and (c-3) have been made from the tax revenue from electronic

18 gaming deposited into the State Gaming Fund under this Section,

19 all remaining amounts from electronic gaming shall be deposited

20 into the Education Assistance Fund.

21 (c-5) Before May 26, 2006 (the effective date of Public Act

22 94-804) and beginning on the effective date of this amendatory

23 Act of the 95th General Assembly, unless any organization

24 licensee under the Illinois Horse Racing Act of 1975 begins to

25 operate a slot machine or video game of chance under the

26 Illinois Horse Racing Act of 1975 or this Act, after the

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1 payments required under subsections (b) and (c) have been made,

2 an amount equal to 15% of the adjusted gross receipts of (1) an

3 owners licensee that relocates pursuant to Section 11.2, (2) an

4 owners licensee conducting riverboat gambling operations

5 pursuant to an owners license that is initially issued after

6 June 25, 1999, or (3) the first riverboat gambling operations

7 conducted by a licensed manager on behalf of the State under

8 Section 7.3, whichever comes first, shall be paid from the

9 State Gaming Fund into the Horse Racing Equity Fund.

10 (c-10) Each year the General Assembly shall appropriate

11 from the General Revenue Fund to the Education Assistance Fund

12 an amount equal to the amount paid into the Horse Racing Equity

13 Fund pursuant to subsection (c-5) in the prior calendar year.

14 (c-15) After the payments required under subsections (b),

15 (c), and (c-5) have been made, an amount equal to 2% of the

16 adjusted gross receipts of (1) an owners licensee that

17 relocates pursuant to Section 11.2, (2) an owners licensee

18 conducting riverboat gambling operations pursuant to an owners

19 license that is initially issued after June 25, 1999, or (3)

20 the first riverboat gambling operations conducted by a licensed

21 manager on behalf of the State under Section 7.3, whichever

22 comes first, shall be paid, subject to appropriation from the

23 General Assembly, from the State Gaming Fund to each home rule

24 county with a population of over 3,000,000 inhabitants for the

25 purpose of enhancing the county's criminal justice system.

26 (c-20) Each year the General Assembly shall appropriate

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1 from the General Revenue Fund to the Education Assistance Fund

2 an amount equal to the amount paid to each home rule county

3 with a population of over 3,000,000 inhabitants pursuant to

4 subsection (c-15) in the prior calendar year.

5 (c-25) On July 1, 2013 and each July 1 thereafter,

6 $1,600,000 shall be transferred from the State Gaming Fund to

7 the Chicago State University Education Improvement Fund.

8 (c-30) On July 1, 2013 or as soon as possible thereafter,

9 $92,000,000 shall be transferred from the State Gaming Fund to

10 the School Infrastructure Fund and $23,000,000 shall be

11 transferred from the State Gaming Fund to the Horse Racing

12 Equity Fund.

13 (c-35) Beginning on July 1, 2013, in addition to any amount

14 transferred under subsection (c-30) of this Section,

15 $5,530,000 shall be transferred monthly from the State Gaming

16 Fund to the School Infrastructure Fund.

17 (d) From time to time, the Board shall transfer the

18 remainder of the funds generated by this Act into the Education

19 Assistance Fund, created by Public Act 86-0018, of the State of

20 Illinois.

21 (e) Nothing in this Act shall prohibit the unit of local

22 government designated as the home dock of the riverboat from

23 entering into agreements with other units of local government

24 in this State or in other states to share its portion of the

25 tax revenue.

26 (f) To the extent practicable, the Board shall administer

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1 and collect the wagering taxes imposed by this Section in a

2 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

3 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the

4 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

5 Penalty and Interest Act.

6 (Source: P.A. 98-18, eff. 6-7-13.)

7 (230 ILCS 10/14) (from Ch. 120, par. 2414)

8 Sec. 14. Licensees - Records - Reports - Supervision.

9 (a) Licensed owners and electronic gaming licensees ~~A~~

10 ~~licensed owner~~ shall keep ~~his~~ books and records so as to

11 clearly show the following:

12 (1) The amount received daily from admission fees.

13 (2) The total amount of gross receipts.

14 (3) The total amount of the adjusted gross receipts.

15 (b) Licensed owners and electronic gaming licensees ~~The~~

16 ~~licensed owner~~ shall furnish to the Board reports and

17 information as the Board may require with respect to its

18 activities on forms designed and supplied for such purpose by

19 the Board.

20 (c) The books and records kept by a licensed owner as

21 provided by this Section are public records and the

22 examination, publication, and dissemination of the books and

23 records are governed by the provisions of The Freedom of

24 Information Act.

25 (Source: P.A. 86-1029.)

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1 (230 ILCS 10/15) (from Ch. 120, par. 2415)

2 Sec. 15. Audit of Licensee Operations. Annually, the

3 licensed owner, ~~or~~ manager, or electronic gaming licenseeshall

4 transmit to the Board an audit of the financial transactions

5 and condition of the licensee's or manager's total operations.

6 Additionally, within 90 days after the end of each quarter of

7 each fiscal year, the licensed owner, ~~or~~ manager, or electronic

8 gaming licensee shall transmit to the Board a compliance report

9 on engagement procedures determined by the Board. All audits

10 and compliance engagements shall be conducted by certified

11 public accountants selected by the Board. Each certified public

12 accountant must be registered in the State of Illinois under

13 the Illinois Public Accounting Act. The compensation for each

14 certified public accountant shall be paid directly by the

15 licensed owner, ~~or~~ manager, or electronic gaming licensee to

16 the certified public accountant.

17 (Source: P.A. 96-1392, eff. 1-1-11.)

18 (230 ILCS 10/16) (from Ch. 120, par. 2416)

19 Sec. 16. Annual Report of Board. The Board shall make an

20 annual report to the Governor, for the period ending December

21 31 of each year. Included in the report shall be an account of

22 the Board actions, its financial position and results of

23 operation under this Act and the Chicago Casino Development

24 Authority Act, the practical results attained under this Act

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1 and the Chicago Casino Development Authority Act and any

2 recommendations for legislation which the Board deems

3 advisable.

4 (Source: P.A. 86-1029.)

5 (230 ILCS 10/17) (from Ch. 120, par. 2417)

6 Sec. 17. Administrative Procedures. The Illinois

7 Administrative Procedure Act shall apply to all administrative

8 rules and procedures of the Board under this Act, the Chicago

9 Casino Development Authority Act, and ~~or~~ the Video Gaming Act,

10 except that: (1) subsection (b) of Section 5-10 of the Illinois

11 Administrative Procedure Act does not apply to final orders,

12 decisions and opinions of the Board; (2) subsection (a) of

13 Section 5-10 of the Illinois Administrative Procedure Act does

14 not apply to forms established by the Board for use under this

15 Act, the Chicago Casino Development Authority Act, and or the

16 Video Gaming Act; (3) the provisions of Section 10-45 of the

17 Illinois Administrative Procedure Act regarding proposals for

18 decision are excluded under this Act, the Chicago Casino

19 Development Authority Act, and ~~or~~ the Video Gaming Act; and (4)

20 the provisions of subsection (d) of Section 10-65 of the

21 Illinois Administrative Procedure Act do not apply so as to

22 prevent summary suspension of any license pending revocation or

23 other action, which suspension shall remain in effect unless

24 modified by the Board or unless the Board's decision is

25 reversed on the merits upon judicial review.

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1 (Source: P.A. 96-34, eff. 7-13-09.)

2 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)

3 Sec. 17.1. Judicial Review.

4 (a) Jurisdiction and venue for the judicial review of a

5 final order of the Board relating to licensed owners,

6 suppliers, electronic gaming licensees, and ~~or~~special event

7 licenses is vested in the Appellate Court of the judicial

8 district in which Sangamon County is located. A petition for

9 judicial review of a final order of the Board must be filed in

10 the Appellate Court, within 35 days from the date that a copy

11 of the decision sought to be reviewed was served upon the party

12 affected by the decision.

13 (b) Judicial review of all other final orders of the Board

14 shall be conducted in accordance with the Administrative Review

15 Law.

16 (Source: P.A. 88-1.)

17 (230 ILCS 10/18) (from Ch. 120, par. 2418)

18 Sec. 18. Prohibited Activities - Penalty.

19 (a) A person is guilty of a Class A misdemeanor for doing

20 any of the following:

21 (1) Conducting gambling where wagering is used or to be

22 used without a license issued by the Board.

23 (2) Conducting gambling where wagering is permitted

24 other than in the manner specified by Section 11.

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1 (b) A person is guilty of a Class B misdemeanor for doing

2 any of the following:

3 (1) permitting a person under 21 years to make a wager;

4 or

5 (2) violating paragraph (12) of subsection (a) of

6 Section 11 of this Act.

7 (c) A person wagering or accepting a wager at any location

8 outside the riverboat, casino, or electronic gaming facility in

9 violation of paragraph ~~is subject to the penalties in~~

10 ~~paragraphs~~(1) or (2) of subsection (a) of Section 28-1 of the

11 Criminal Code of 2012 is subject to the penalties provided in

12 that Section.

13 (d) A person commits a Class 4 felony and, in addition,

14 shall be barred for life fromgambling operations ~~riverboats~~

15 under the jurisdiction of the Board, if the person does any of

16 the following:

17 (1) Offers, promises, or gives anything of value or

18 benefit to a person who is connected with a riverboator

19 casino owner or electronic gaming licensee,including, but

20 not limited to, an officer or employee of a licensed owner,

21 electronic gaming licensee,or holder of an occupational

22 license pursuant to an agreement or arrangement or with the

23 intent that the promise or thing of value or benefit will

24 influence the actions of the person to whom the offer,

25 promise, or gift was made in order to affect or attempt to

26 affect the outcome of a gambling game, or to influence

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1 official action of a member of the Board.

2 (2) Solicits or knowingly accepts or receives a promise

3 of anything of value or benefit while the person is

4 connected with a riverboat, casino, or electronic gaming

5 facility,including, but not limited to, an officer or

6 employee of a licensed owner or electronic gaming licensee,

7 or the holder of an occupational license, pursuant to an

8 understanding or arrangement or with the intent that the

9 promise or thing of value or benefit will influence the

10 actions of the person to affect or attempt to affect the

11 outcome of a gambling game, or to influence official action

12 of a member of the Board.

13 (3) Uses or possesses with the intent to use a device

14 to assist:

15 (i) In projecting the outcome of the game.

16 (ii) In keeping track of the cards played.

17 (iii) In analyzing the probability of the

18 occurrence of an event relating to the gambling game.

19 (iv) In analyzing the strategy for playing or

20 betting to be used in the game except as permitted by

21 the Board.

22 (4) Cheats at a gambling game.

23 (5) Manufactures, sells, or distributes any cards,

24 chips, dice, game or device which is intended to be used to

25 violate any provision of this Act or the Chicago Casino

26 Development Authority Act.

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1 (6) Alters or misrepresents the outcome of a gambling

2 game on which wagers have been made after the outcome is

3 made sure but before it is revealed to the players.

4 (7) Places a bet after acquiring knowledge, not

5 available to all players, of the outcome of the gambling

6 game which is subject of the bet or to aid a person in

7 acquiring the knowledge for the purpose of placing a bet

8 contingent on that outcome.

9 (8) Claims, collects, or takes, or attempts to claim,

10 collect, or take, money or anything of value in or from the

11 gambling games, with intent to defraud, without having made

12 a wager contingent on winning a gambling game, or claims,

13 collects, or takes an amount of money or thing of value of

14 greater value than the amount won.

15 (9) Uses counterfeit chips or tokens in a gambling

16 game.

17 (10) Possesses any key or device designed for the

18 purpose of opening, entering, or affecting the operation of

19 a gambling game, drop box, or an electronic or mechanical

20 device connected with the gambling game or for removing

21 coins, tokens, chips or other contents of a gambling game.

22 This paragraph (10) does not apply to a gambling licensee

23 or employee of a gambling licensee acting in furtherance of

24 the employee's employment.

25 (e) The possession of more than one of the devices

26 described in subsection (d), paragraphs (3), (5), or (10)

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1 permits a rebuttable presumption that the possessor intended to

2 use the devices for cheating.

3 (f) A person under the age of 21 who, except as authorized

4 under paragraph (10) of Section 11, enters upon a riverboat or

5 in a casino or electronic gaming facility commits a petty

6 offense and is subject to a fine of not less than $100 or more

7 than $250 for a first offense and of not less than $200 or more

8 than $500 for a second or subsequent offense.

9 An action to prosecute any crime occurring on a riverboat

10 shall be tried in the county of the dock at which the riverboat

11 is based. An action to prosecute any crime occurring in a

12 casino or electronic gaming facility shall be tried in the

13 county in which the casino or electronic gaming facility is

14 located.

15 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

16 (230 ILCS 10/18.1)

17 Sec. 18.1. Distribution of certain fines. If a fine is

18 imposed on an owner licensee or an electronic gaming licensee

19 for knowingly sending marketing or promotional materials to any

20 person placed on the self-exclusion list, then the Board shall

21 distribute an amount equal to 15% of the fine imposed to the

22 unit of local government in which the casino, riverboat, or

23 electronic gaming facility is located for the purpose of

24 awarding grants to non-profit entities that assist gambling

25 addicts.

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1 (Source: P.A. 96-224, eff. 8-11-09.)

2 (230 ILCS 10/18.2 new)

3 Sec. 18.2. Prohibition on political contributions from

4 certain licensees and applicants.

5 (a) The General Assembly has a compelling interest in

6 protecting the integrity of both the electoral process and the

7 legislative process by preventing corruption and the

8 appearance of corruption which may arise through permitting

9 certain political campaign contributions by certain persons

10 involved in the gaming industry and regulated by the State.

11 Unlike most other regulated industries, gaming is especially

12 susceptible to corruption and potential criminal influence.

13 In Illinois, only licensed gaming activities are legal and

14 all other gaming activities are strictly prohibited. Given

15 these circumstances, it is imperative to eliminate any

16 potential corrupt influence in the gaming industry and the

17 electoral process. Banning political campaign contributions by

18 certain persons subject to this Section to State officeholders

19 and candidates for such offices and to county and municipal

20 officeholders and candidates for such offices in counties and

21 municipalities that receive financial benefits from gaming

22 activities is necessary to prevent corruption and the

23 appearance of corruption that may arise when political campaign

24 contributions and gaming that is regulated by the State and

25 that confers benefits on counties and municipalities are

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1 intermingled.

2 The General Assembly has prohibited political campaign

3 contributions to certain State and local officeholders and

4 candidates for such offices by certain persons with State of

5 Illinois and Metropolitan Pier and Exposition Authority

6 contracts and pending bids or proposals for contracts of over

7 $50,000 and certain individuals and entities affiliated with

8 such persons. Certain gaming licensees will receive receipts

9 far in excess of the base level of contract amounts subject to

10 such other campaign contribution prohibitions.

11 (b) As used in this Section:

12 "Affiliated entity" means (i) any corporate parent and each

13 operating subsidiary of the business entity applying for or

14 holding a license, (ii) each operating subsidiary of the

15 corporate parent of the business entity applying for or holding

16 a license, (iii) any organization recognized by the United

17 States Internal Revenue Service as a tax-exempt organization

18 described in Section 501(c) of the Internal Revenue Code of

19 1986 (or any successor provision of federal tax law)

20 established by one or more business entities seeking or holding

21 a license, any affiliated entity of such business entity, or

22 any affiliated person of such business entity, and (iv) any

23 political committee for which the business entity applying for

24 or holding a license, or any 501(c) organization described in

25 item (iii) related to that business entity, is the sponsoring

26 entity, as defined in Section 9-3 of the Election Code. For

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1 purposes of item (iv), the funding of all business entities

2 applying for or holding a license shall be aggregated in

3 determining whether such political committee is an affiliated

4 entity.

5 "Affiliated person" means (i) any person with any ownership

6 interest or distributive share in excess of 7.5% of any

7 business entity applying for or holding a license, (ii)

8 executive employees of any such business entity, (iii) any

9 person designated as a key person under this Act, and (iv) the

10 spouse of such persons.

11 "Contribution" means a contribution as defined in Section

12 9-1.4 of the Election Code.

13 "Declared candidate" means a person who has filed a

14 statement of candidacy and petition for nomination or election

15 in the principal office of the State Board of Elections, or in

16 the office of the appropriate election authority for any county

17 or municipality in which a casino or electronic gaming device

18 is located or proposed or which receives any gaming revenue.

19 "Executive employee" means any person who is (i) an officer

20 or director or who fulfills duties equivalent to those of an

21 officer or director of a business entity applying for or

22 holding a license and (ii) any employee of such business entity

23 who is required to register under the Lobbyist Registration

24 Act.

25 "License" means any owner, electronic gaming, or manager

26 license issued pursuant to this Act.

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1 "Officeholder" means the Governor, Lieutenant Governor,

2 Attorney General, Secretary of State, Comptroller, Treasurer,

3 member of the General Assembly, or any officeholder in any

4 county or municipality in which a riverboat, casino, or

5 electronic gaming device is located or proposed or which

6 receives any gaming revenue.

7 "Business entity" means any entity doing business for

8 profit, whether organized as a corporation, partnership, sole

9 proprietorship, limited liability company, or partnership or

10 otherwise.

11 (c) Any person or business entity applying for or holding a

12 license, any affiliated entities or persons of such business

13 entity, and any entities or persons soliciting a contribution

14 or causing a contribution to be made on behalf of such person

15 or business entity, are prohibited from making any contribution

16 to any officeholder or declared candidate or any political

17 committee affiliated with any officeholder or declared

18 candidate, as defined in Section 9-1.8 of the Election Code.

19 This prohibition shall commence upon filing of an application

20 for a license and shall continue for a period of 2 years after

21 termination, suspension, or revocation of the license.

22 The Board shall have authority to suspend, revoke, or

23 restrict the license and to impose civil penalties of up to

24 $100,000 for each violation of this subsection (c). A notice of

25 each such violation and the penalty imposed shall be published

26 on the Board's website and in the Illinois Register. Payments

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1 received by the State pursuant to this subsection (c) shall be

2 deposited into the General Revenue Fund.

3 Any officeholder or declared candidate or any political

4 committee affiliated with any officeholder or declared

5 candidate that has received a contribution in violation of this

6 subsection (c) shall pay an amount equal to the value of the

7 contribution to the State no more than 30 days after notice of

8 the violation concerning the contribution appears in the

9 Illinois Register. Payments received by the State pursuant to

10 this subsection (c) shall be deposited into the General Revenue

11 Fund.

12 (d) The Board shall post on its website a list of all

13 persons, business entities, and affiliated entities prohibited

14 from making contributions to any officeholder or declared

15 candidate political committee pursuant to subsection (c),

16 which list shall be updated and published on, at a minimum, a

17 semiannual basis.

18 Any person, business entity, or affiliated entity

19 prohibited from making contributions to any officeholder or

20 declared candidate political committee pursuant to subsection

21 (c) shall notify the Board within 7 days after discovering any

22 necessary change or addition to the information relating to

23 that person, business entity, or affiliated entity contained in

24 the list.

25 An individual who acts in good faith and in reliance on any

26 information contained in the list shall not be subject to any

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1 penalties or liability imposed for a violation of this Section.

2 (e) If any provision of this Section is held invalid or its

3 application to any person or circumstance is held invalid, the

4 invalidity of that provision or application does not affect the

5 other provisions or applications of this Section that can be

6 given effect without the invalid application or provision.

7 (230 ILCS 10/19) (from Ch. 120, par. 2419)

8 Sec. 19. Forfeiture of property.

9 (a) Except as provided in subsection (b), any riverboat,

10 casino, or electronic gaming facilityused for the conduct of

11 gambling games in violation of this Act shall be considered a

12 gambling place in violation of Section 28-3 of the Criminal

13 Code of 2012. Every gambling device found on a riverboat, in a

14 casino, or at an electronic gaming facility operating gambling

15 games in violation of this Actand every slot machine and video

16 game of chance found at an electronic gaming facility operating

17 gambling games in violation of this Act or the Chicago Casino

18 Development Authority Act shall be subject to seizure,

19 confiscation and destruction as provided in Section 28-5 of the

20 Criminal Code of 2012.

21 (b) It is not a violation of this Act for a riverboat or

22 other watercraft which is licensed for gaming by a contiguous

23 state to dock on the shores of this State if the municipality

24 having jurisdiction of the shores, or the county in the case of

25 unincorporated areas, has granted permission for docking and no

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1 gaming is conducted on the riverboat or other watercraft while

2 it is docked on the shores of this State. No gambling device

3 shall be subject to seizure, confiscation or destruction if the

4 gambling device is located on a riverboat or other watercraft

5 which is licensed for gaming by a contiguous state and which is

6 docked on the shores of this State if the municipality having

7 jurisdiction of the shores, or the county in the case of

8 unincorporated areas, has granted permission for docking and no

9 gaming is conducted on the riverboat or other watercraft while

10 it is docked on the shores of this State.

11 (Source: P.A. 97-1150, eff. 1-25-13.)

12 (230 ILCS 10/20) (from Ch. 120, par. 2420)

13 Sec. 20. Prohibited activities - civil penalties. Any

14 person who conducts a gambling operation without first

15 obtaining a license to do so, or who continues to conduct such

16 games after revocation of his license, or any licensee who

17 conducts or allows to be conducted any unauthorized gambling

18 games on a riverboat, in a casino, or at an electronic gaming

19 facilitywhere it is authorized to conduct its~~riverboat~~

20 gambling operation, in addition to other penalties provided,

21 shall be subject to a civil penalty equal to the amount of

22 gross receipts derived from wagering on the gambling games,

23 whether unauthorized or authorized, conducted on that day as

24 well as confiscation and forfeiture of all gambling game

25 equipment used in the conduct of unauthorized gambling games.

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1 (Source: P.A. 86-1029.)

2 (230 ILCS 10/21) (from Ch. 120, par. 2421)

3 Sec. 21. Limitation on taxation of licensees. Licensees

4 shall not be subjected to any excise tax, license tax, permit

5 tax, privilege tax, occupation tax or excursion tax which is

6 imposed exclusively upon the licensee by the State or any

7 political subdivision thereof, except as provided in this Act

8 or the Chicago Casino Development Authority Act.

9 (Source: P.A. 86-1029.)

10 (230 ILCS 10/23) (from Ch. 120, par. 2423)

11 Sec. 23. The State Gaming Fund. On or after the effective

12 date of this Act, except as provided for payments into the

13 Horse Racing Equity Trust Fund under subsection (a) of Section

14 7, all of the fees and taxes collected pursuant to this Actor

15 the Chicago Casino Development Authority Act shall be deposited

16 into the State Gaming Fund, a special fund in the State

17 Treasury, which is hereby created. The adjusted gross receipts

18 of any riverboat gambling operations conducted by a licensed

19 manager on behalf of the State remaining after the payment of

20 the fees and expenses of the licensed manager shall be

21 deposited into the State Gaming Fund. Fines and penalties

22 collected pursuant to this Act or the Chicago Casino

23 Development Authority Actshall be deposited into the Education

24 Assistance Fund, created by Public Act 86-0018, of the State of

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1 Illinois.

2 (Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)

3 (230 ILCS 10/24)

4 Sec. 24. Applicability of this ~~Illinois Riverboat Gambling~~

5 Act. The provisions of the this ~~Illinois Riverboat Gambling~~

6 Act, and all rules promulgated thereunder, shall apply to the

7 the Chicago Casino Development Authority Act and the Video

8 Gaming Act, except where there is a conflict between the ~~2~~

9 Acts. In the event of a conflict between this Act and the

10 Chicago Casino Development Authority Act, the terms of the

11 Chicago Casino Development Authority Act shall prevail. In the

12 event of a conflict between this Act and the Video Gaming Act,

13 the terms of this Act shall prevail.

14 (Source: P.A. 96-37, eff. 7-13-09.)

15 Section 90-42. The Video Gaming Act is amended by changing

16 Sections 5, 25, 45, 79, and 80 and by adding Section 81 as

17 follows:

18 (230 ILCS 40/5)

19 Sec. 5. Definitions. As used in this Act:

20 "Board" means the Illinois Gaming Board.

21 "Credit" means one, 5, 10, or 25 cents either won or

22 purchased by a player.

23 "Distributor" means an individual, partnership,

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1 corporation, or limited liability company licensed under this

2 Act to buy, sell, lease, or distribute video gaming terminals

3 or major components or parts of video gaming terminals to or

4 from terminal operators.

5 "Electronic card" means a card purchased from a licensed

6 establishment, licensed fraternal establishment, licensed

7 veterans establishment, or licensed truck stop establishment

8 for use in that establishment as a substitute for cash in the

9 conduct of gaming on a video gaming terminal.

10 "Electronic voucher" means a voucher printed by an

11 electronic video game machine that is redeemable in the

12 licensed establishment for which it was issued.

13 "Terminal operator" means an individual, partnership,

14 corporation, or limited liability company that is licensed

15 under this Act and that owns, services, and maintains video

16 gaming terminals for placement in licensed establishments,

17 licensed truck stop establishments, licensed fraternal

18 establishments, or licensed veterans establishments.

19 "Licensed technician" means an individual who is licensed

20 under this Act to repair, service, and maintain video gaming

21 terminals.

22 "Licensed terminal handler" means a person, including but

23 not limited to an employee or independent contractor working

24 for a manufacturer, distributor, supplier, technician, or

25 terminal operator, who is licensed under this Act to possess or

26 control a video gaming terminal or to have access to the inner

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1 workings of a video gaming terminal. A licensed terminal

2 handler does not include an individual, partnership,

3 corporation, or limited liability company defined as a

4 manufacturer, distributor, supplier, technician, or terminal

5 operator under this Act.

6 "Manufacturer" means an individual, partnership,

7 corporation, or limited liability company that is licensed

8 under this Act and that manufactures or assembles video gaming

9 terminals.

10 "Supplier" means an individual, partnership, corporation,

11 or limited liability company that is licensed under this Act to

12 supply major components or parts to video gaming terminals to

13 licensed terminal operators.

14 "Net terminal income" means money put into a video gaming

15 terminal minus credits paid out to players.

16 "Video gaming terminal" means any electronic video game

17 machine that, upon insertion of cash, electronic cards or

18 vouchers, or any combination thereof, is available to play or

19 simulate the play of a video game, including but not limited to

20 video poker, line up, and blackjack, as authorized by the Board

21 utilizing a video display and microprocessors in which the

22 player may receive free games or credits that can be redeemed

23 for cash. The term does not include a machine that directly

24 dispenses coins, cash, or tokens or is for amusement purposes

25 only.

26 "Licensed establishment" means any licensed retail

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1 establishment where alcoholic liquor is drawn, poured, mixed,

2 or otherwise served for consumption on the premises, whether

3 the establishment operates on a nonprofit or for-profit basis.

4 "Licensed establishment" includes any such establishment that

5 has a contractual relationship with an inter-track wagering

6 location licensee licensed under the Illinois Horse Racing Act

7 of 1975, provided any contractual relationship shall not

8 include any transfer or offer of revenue from the operation of

9 video gaming under this Act to any licensee licensed under the

10 Illinois Horse Racing Act of 1975. Provided, however, that the

11 licensed establishment that has such a contractual

12 relationship with an inter-track wagering location licensee

13 may not, itself, be (i) an inter-track wagering location

14 licensee, (ii) the corporate parent or subsidiary of any

15 licensee licensed under the Illinois Horse Racing Act of 1975,

16 or (iii) the corporate subsidiary of a corporation that is also

17 the corporate parent or subsidiary of any licensee licensed

18 under the Illinois Horse Racing Act of 1975. "Licensed

19 establishment" does not include a facility operated by an

20 organization licensee, an inter-track wagering licensee, or an

21 inter-track wagering location licensee licensed under the

22 Illinois Horse Racing Act of 1975 or a riverboat licensed under

23 the Illinois ~~Riverboat~~ Gambling Act, except as provided in this

24 paragraph. The changes made to this definition by Public Act

25 98-587 are declarative of existing law.

26 "Licensed fraternal establishment" means the location

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1 where a qualified fraternal organization that derives its

2 charter from a national fraternal organization regularly

3 meets.

4 "Licensed veterans establishment" means the location where

5 a qualified veterans organization that derives its charter from

6 a national veterans organization regularly meets.

7 "Licensed truck stop establishment" means a facility (i)

8 that is at least a 3-acre facility with a convenience store,

9 (ii) with separate diesel islands for fueling commercial motor

10 vehicles, (iii) that sells at retail more than 10,000 gallons

11 of diesel or biodiesel fuel per month, and (iv) with parking

12 spaces for commercial motor vehicles. "Commercial motor

13 vehicles" has the same meaning as defined in Section 18b-101 of

14 the Illinois Vehicle Code. The requirement of item (iii) of

15 this paragraph may be met by showing that estimated future

16 sales or past sales average at least 10,000 gallons per month.

17 (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;

18 98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.

19 7-16-14.)

20 (230 ILCS 40/25)

21 Sec. 25. Restriction of licensees.

22 (a) Manufacturer. A person may not be licensed as a

23 manufacturer of a video gaming terminal in Illinois unless the

24 person has a valid manufacturer's license issued under this

25 Act. A manufacturer may only sell video gaming terminals for

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1 use in Illinois to persons having a valid distributor's

2 license.

3 (b) Distributor. A person may not sell, distribute, or

4 lease or market a video gaming terminal in Illinois unless the

5 person has a valid distributor's license issued under this Act.

6 A distributor may only sell video gaming terminals for use in

7 Illinois to persons having a valid distributor's or terminal

8 operator's license.

9 (c) Terminal operator. A person may not own, maintain, or

10 place a video gaming terminal unless he has a valid terminal

11 operator's license issued under this Act. A terminal operator

12 may only place video gaming terminals for use in Illinois in

13 licensed establishments, licensed truck stop establishments,

14 licensed fraternal establishments, and licensed veterans

15 establishments. No terminal operator may give anything of

16 value, including but not limited to a loan or financing

17 arrangement, to a licensed establishment, licensed truck stop

18 establishment, licensed fraternal establishment, or licensed

19 veterans establishment as any incentive or inducement to locate

20 video terminals in that establishment. Of the after-tax profits

21 from a video gaming terminal, 50% shall be paid to the terminal

22 operator and 50% shall be paid to the licensed establishment,

23 licensed truck stop establishment, licensed fraternal

24 establishment, or licensed veterans establishment,

25 notwithstanding any agreement to the contrary. A video terminal

26 operator that violates one or more requirements of this

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1 subsection is guilty of a Class 4 felony and is subject to

2 termination of his or her license by the Board.

3 (d) Licensed technician. A person may not service,

4 maintain, or repair a video gaming terminal in this State

5 unless he or she (1) has a valid technician's license issued

6 under this Act, (2) is a terminal operator, or (3) is employed

7 by a terminal operator, distributor, or manufacturer.

8 (d-5) Licensed terminal handler. No person, including, but

9 not limited to, an employee or independent contractor working

10 for a manufacturer, distributor, supplier, technician, or

11 terminal operator licensed pursuant to this Act, shall have

12 possession or control of a video gaming terminal, or access to

13 the inner workings of a video gaming terminal, unless that

14 person possesses a valid terminal handler's license issued

15 under this Act.

16 (e) Licensed establishment. No video gaming terminal may be

17 placed in any licensed establishment, licensed veterans

18 establishment, licensed truck stop establishment, or licensed

19 fraternal establishment unless the owner or agent of the owner

20 of the licensed establishment, licensed veterans

21 establishment, licensed truck stop establishment, or licensed

22 fraternal establishment has entered into a written use

23 agreement with the terminal operator for placement of the

24 terminals. A copy of the use agreement shall be on file in the

25 terminal operator's place of business and available for

26 inspection by individuals authorized by the Board. A licensed

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1 establishment, licensed truck stop establishment, licensed

2 veterans establishment, or licensed fraternal establishment

3 may operate up to 5 video gaming terminals on its premises at

4 any time.

5 (f) (Blank).

6 (g) Financial interest restrictions. As used in this Act,

7 "substantial interest" in a partnership, a corporation, an

8 organization, an association, a business, or a limited

9 liability company means:

10 (A) When, with respect to a sole proprietorship, an

11 individual or his or her spouse owns, operates, manages, or

12 conducts, directly or indirectly, the organization,

13 association, or business, or any part thereof; or

14 (B) When, with respect to a partnership, the individual

15 or his or her spouse shares in any of the profits, or

16 potential profits, of the partnership activities; or

17 (C) When, with respect to a corporation, an individual

18 or his or her spouse is an officer or director, or the

19 individual or his or her spouse is a holder, directly or

20 beneficially, of 5% or more of any class of stock of the

21 corporation; or

22 (D) When, with respect to an organization not covered

23 in (A), (B) or (C) above, an individual or his or her

24 spouse is an officer or manages the business affairs, or

25 the individual or his or her spouse is the owner of or

26 otherwise controls 10% or more of the assets of the

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1 organization; or

2 (E) When an individual or his or her spouse furnishes

3 5% or more of the capital, whether in cash, goods, or

4 services, for the operation of any business, association,

5 or organization during any calendar year; or

6 (F) When, with respect to a limited liability company,

7 an individual or his or her spouse is a member, or the

8 individual or his or her spouse is a holder, directly or

9 beneficially, of 5% or more of the membership interest of

10 the limited liability company.

11 For purposes of this subsection (g), "individual" includes

12 all individuals or their spouses whose combined interest would

13 qualify as a substantial interest under this subsection (g) and

14 whose activities with respect to an organization, association,

15 or business are so closely aligned or coordinated as to

16 constitute the activities of a single entity.

17 (h) Location restriction. A licensed establishment,

18 licensed truck stop establishment, licensed fraternal

19 establishment, or licensed veterans establishment that is (i)

20 located within 1,000 feet of a facility operated by an

21 organization licensee licensed under the Illinois Horse Racing

22 Act of 1975 or the home dock of a riverboat licensed under the

23 Illinois ~~Riverboat~~Gambling Act or (ii) located within 100 feet

24 of a school or a place of worship under the Religious

25 Corporation Act, is ineligible to operate a video gaming

26 terminal. The location restrictions in this subsection (h) do

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1 not apply if (A) a facility operated by an organization

2 licensee, a school, or a place of worship moves to or is

3 established within the restricted area after a licensed

4 establishment, licensed truck stop establishment, licensed

5 fraternal establishment, or licensed veterans establishment

6 becomes licensed under this Act or (B) a school or place of

7 worship moves to or is established within the restricted area

8 after a licensed establishment, licensed truck stop

9 establishment, licensed fraternal establishment, or licensed

10 veterans establishment obtains its original liquor license.

11 For the purpose of this subsection, "school" means an

12 elementary or secondary public school, or an elementary or

13 secondary private school registered with or recognized by the

14 State Board of Education.

15 Notwithstanding the provisions of this subsection (h), the

16 Board may waive the requirement that a licensed establishment,

17 licensed truck stop establishment, licensed fraternal

18 establishment, or licensed veterans establishment not be

19 located within 1,000 feet from a facility operated by an

20 organization licensee licensed under the Illinois Horse Racing

21 Act of 1975 or the home dock of a riverboat licensed under the

22 Illinois ~~Riverboat~~ Gambling Act. The Board shall not grant such

23 waiver if there is any common ownership or control, shared

24 business activity, or contractual arrangement of any type

25 between the establishment and the organization licensee or

26 owners licensee of a riverboat. The Board shall adopt rules to

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1 implement the provisions of this paragraph.

2 (i) Undue economic concentration. In addition to

3 considering all other requirements under this Act, in deciding

4 whether to approve the operation of video gaming terminals by a

5 terminal operator in a location, the Board shall consider the

6 impact of any economic concentration of such operation of video

7 gaming terminals. The Board shall not allow a terminal operator

8 to operate video gaming terminals if the Board determines such

9 operation will result in undue economic concentration. For

10 purposes of this Section, "undue economic concentration" means

11 that a terminal operator would have such actual or potential

12 influence over video gaming terminals in Illinois as to:

13 (1) substantially impede or suppress competition among

14 terminal operators;

15 (2) adversely impact the economic stability of the

16 video gaming industry in Illinois; or

17 (3) negatively impact the purposes of the Video Gaming

18 Act.

19 The Board shall adopt rules concerning undue economic

20 concentration with respect to the operation of video gaming

21 terminals in Illinois. The rules shall include, but not be

22 limited to, (i) limitations on the number of video gaming

23 terminals operated by any terminal operator within a defined

24 geographic radius and (ii) guidelines on the discontinuation of

25 operation of any such video gaming terminals the Board

26 determines will cause undue economic concentration.

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1 (j) The provisions of the Illinois Antitrust Act are fully

2 and equally applicable to the activities of any licensee under

3 this Act.

4 (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,

5 eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)

6 (230 ILCS 40/45)

7 Sec. 45. Issuance of license.

8 (a) The burden is upon each applicant to demonstrate his

9 suitability for licensure. Each video gaming terminal

10 manufacturer, distributor, supplier, operator, handler,

11 licensed establishment, licensed truck stop establishment,

12 licensed fraternal establishment, and licensed veterans

13 establishment shall be licensed by the Board. The Board may

14 issue or deny a license under this Act to any person pursuant

15 to the same criteria set forth in Section 9 of the Illinois

16 ~~Riverboat~~ Gambling Act.

17 (a-5) The Board shall not grant a license to a person who

18 has facilitated, enabled, or participated in the use of

19 coin-operated devices for gambling purposes or who is under the

20 significant influence or control of such a person. For the

21 purposes of this Act, "facilitated, enabled, or participated in

22 the use of coin-operated amusement devices for gambling

23 purposes" means that the person has been convicted of any

24 violation of Article 28 of the Criminal Code of 1961 or the

25 Criminal Code of 2012. If there is pending legal action against

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1 a person for any such violation, then the Board shall delay the

2 licensure of that person until the legal action is resolved.

3 (b) Each person seeking and possessing a license as a video

4 gaming terminal manufacturer, distributor, supplier, operator,

5 handler, licensed establishment, licensed truck stop

6 establishment, licensed fraternal establishment, or licensed

7 veterans establishment shall submit to a background

8 investigation conducted by the Board with the assistance of the

9 State Police or other law enforcement. To the extent that the

10 corporate structure of the applicant allows, the background

11 investigation shall include any or all of the following as the

12 Board deems appropriate or as provided by rule for each

13 category of licensure: (i) each beneficiary of a trust, (ii)

14 each partner of a partnership, (iii) each member of a limited

15 liability company, (iv) each director and officer of a publicly

16 or non-publicly held corporation, (v) each stockholder of a

17 non-publicly held corporation, (vi) each stockholder of 5% or

18 more of a publicly held corporation, or (vii) each stockholder

19 of 5% or more in a parent or subsidiary corporation.

20 (c) Each person seeking and possessing a license as a video

21 gaming terminal manufacturer, distributor, supplier, operator,

22 handler, licensed establishment, licensed truck stop

23 establishment, licensed fraternal establishment, or licensed

24 veterans establishment shall disclose the identity of every

25 person, association, trust, corporation, or limited liability

26 company having a greater than 1% direct or indirect pecuniary

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1 interest in the video gaming terminal operation for which the

2 license is sought. If the disclosed entity is a trust, the

3 application shall disclose the names and addresses of the

4 beneficiaries; if a corporation, the names and addresses of all

5 stockholders and directors; if a limited liability company, the

6 names and addresses of all members; or if a partnership, the

7 names and addresses of all partners, both general and limited.

8 (d) No person may be licensed as a video gaming terminal

9 manufacturer, distributor, supplier, operator, handler,

10 licensed establishment, licensed truck stop establishment,

11 licensed fraternal establishment, or licensed veterans

12 establishment if that person has been found by the Board to:

13 (1) have a background, including a criminal record,

14 reputation, habits, social or business associations, or

15 prior activities that pose a threat to the public interests

16 of the State or to the security and integrity of video

17 gaming;

18 (2) create or enhance the dangers of unsuitable,

19 unfair, or illegal practices, methods, and activities in

20 the conduct of video gaming; or

21 (3) present questionable business practices and

22 financial arrangements incidental to the conduct of video

23 gaming activities.

24 (e) Any applicant for any license under this Act has the

25 burden of proving his or her qualifications to the satisfaction

26 of the Board. The Board may adopt rules to establish additional

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1 qualifications and requirements to preserve the integrity and

2 security of video gaming in this State.

3 (f) A non-refundable application fee shall be paid at the

4 time an application for a license is filed with the Board in

5 the following amounts:

6 (1) Manufacturer..........................$5,000

7 (2) Distributor...........................$5,000

8 (3) Terminal operator.....................$5,000

9 (4) Supplier..............................$2,500

10 (5) Technician..............................$100

11 (6) Terminal Handler..............................$50

12 (g) The Board shall establish an annual fee for each

13 license not to exceed the following:

14 (1) Manufacturer.........................$10,000

15 (2) Distributor..........................$10,000

16 (3) Terminal operator.....................$5,000

17 (4) Supplier..............................$2,000

18 (5) Technician..............................$100

19 (6) Licensed establishment, licensed truck stop

20 establishment, licensed fraternal establishment,

21 or licensed veterans establishment..............$100

22 (7) Video gaming terminal...................$100

23 (8) Terminal Handler..............................$50

24 (h) A terminal operator and a licensed establishment,

25 licensed truck stop establishment, licensed fraternal

26 establishment, or licensed veterans establishment shall

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1 equally split the fees specified in item (7) of subsection (g).

2 (Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;

3 98-587, eff. 8-27-13; 98-756, eff. 7-16-14.)

4 (230 ILCS 40/79)

5 Sec. 79. Investigators. Investigators appointed by the

6 Board pursuant to the powers conferred upon the Board by

7 paragraph (20.6) of subsection (c) of Section 5 of the Illinois

8 ~~Riverboat~~ Gambling Act and Section 80 of this Act shall have

9 authority to conduct investigations, searches, seizures,

10 arrests, and other duties imposed under this Act and the

11 Illinois ~~Riverboat~~ Gambling Act, as deemed necessary by the

12 Board. These investigators have and may exercise all of the

13 rights and powers of peace officers, provided that these powers

14 shall be (1) limited to offenses or violations occurring or

15 committed in connection with conduct subject to this Act,

16 including, but not limited to, the manufacture, distribution,

17 supply, operation, placement, service, maintenance, or play of

18 video gaming terminals and the distribution of profits and

19 collection of revenues resulting from such play, and (2)

20 exercised, to the fullest extent practicable, in cooperation

21 with the local police department of the applicable municipality

22 or, if these powers are exercised outside the boundaries of an

23 incorporated municipality or within a municipality that does

24 not have its own police department, in cooperation with the

25 police department whose jurisdiction encompasses the

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1 applicable locality.

2 (Source: P.A. 97-809, eff. 7-13-12.)

3 (230 ILCS 40/80)

4 Sec. 80. Applicability of Illinois ~~Riverboat~~ Gambling Act.

5 The provisions of the Illinois ~~Riverboat~~ Gambling Act, and all

6 rules promulgated thereunder, shall apply to the Video Gaming

7 Act, except where there is a conflict between the 2 Acts. In

8 the event of a conflict between the 2 Acts, the provisions of

9 the Illinois Gambling Act shall prevail. All provisions of the

10 Uniform Penalty and Interest Act shall apply, as far as

11 practicable, to the subject matter of this Act to the same

12 extent as if such provisions were included herein.

13 (Source: P.A. 96-37, eff. 7-13-09.)

14 (230 ILCS 40/81 new)

15 Sec. 81. Prohibition of political contributions from

16 certain licensees and applicants.

17 (a) The General Assembly has a compelling interest in

18 protecting the integrity of both the electoral process and the

19 legislative process by preventing corruption and the

20 appearance of corruption which may arise through permitting

21 certain political campaign contributions by certain persons

22 involved in the gaming industry and regulated by the State.

23 Unlike most other regulated industries, gaming is especially

24 susceptible to corruption and potential criminal influence.

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1 In Illinois, only licensed gaming activities are legal and

2 all other gaming activities are strictly prohibited. Given

3 these circumstances, it is imperative to eliminate any

4 potential corrupt influence in the gaming industry and the

5 electoral process. Banning political campaign contributions by

6 certain persons subject to this Section to State officeholders

7 and candidates for such offices and, where necessary, to county

8 and municipal officeholders and candidates for such offices in

9 counties and municipalities that receive financial benefits

10 from gaming activities is necessary to prevent corruption and

11 the appearance of corruption that may arise when political

12 campaign contributions and gaming that is regulated by the

13 State and that confers benefits on counties and municipalities

14 are intermingled.

15 (b) As used in this Section:

16 "Affiliated entity" means (i) any corporate parent and each

17 operating subsidiary of the business entity applying for or

18 holding a license, (ii) each operating subsidiary of the

19 corporate parent of the business entity applying for or holding

20 a license, (iii) any organization recognized by the United

21 States Internal Revenue Service as a tax-exempt organization

22 described in Section 501(c) of the Internal Revenue Code of

23 1986 (or any successor provision of federal tax law)

24 established by one or more business entities seeking or holding

25 a license, any affiliated entity of such business entity, or

26 any affiliated person of such business entity, and (iv) any

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1 political committee for which the business entity applying for

2 or holding a license, or any 501(c) organization described in

3 item (iii) related to that business entity, is the sponsoring

4 entity, as defined in Section 9-3 of the Election Code. For

5 purposes of item (iv), the funding of all business entities

6 applying for or holding a license shall be aggregated in

7 determining whether such political committee is an affiliated

8 entity.

9 "Affiliated person" means (i) any person with any ownership

10 interest or distributive share in excess of 7.5% of any

11 business entity applying for or holding a license, (ii)

12 executive employees of any such business entity, (iii) any

13 person designated as a person of significant influence and

14 control under the Video Gaming Act, and (iv) the spouse of such

15 persons.

16 "Business entity" means any entity doing business for

17 profit, whether organized as a corporation, partnership, sole

18 proprietorship, limited liability company, or partnership or

19 otherwise.

20 "Contribution" means a contribution as defined in Section

21 9-1.4 of the Election Code.

22 "Declared candidate" means a person who has filed a

23 statement of candidacy and petition for nomination or election

24 in the principal office of the State Board of Elections, or in

25 the office of the appropriate election authority for any county

26 or municipality in which a video gaming terminal is located or

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1 proposed or which receives any video gaming revenue, for the

2 office of Governor, Lieutenant Governor, Attorney General,

3 Secretary of State, Comptroller, Treasurer, member of the

4 General Assembly, chief executive or any member of the

5 legislative body of any municipality in which a video gaming

6 terminal is located or proposed or which receives any video

7 gaming revenue, or chief executive or any member of the

8 legislative body of any county containing any unincorporated

9 area in which a video gaming terminal is located or which

10 receives any video gaming revenue.

11 "Executive employee" means any person who is an officer or

12 director or who fulfills duties equivalent to those of an

13 officer or director of a business entity applying for or

14 holding a license; and (ii) any employee of such business

15 entity who is required to register under the Lobbyist

16 Registration Act.

17 "License" means any license issued pursuant to this Act.

18 "Officeholder" means the Governor, the Lieutenant

19 Governor, the Attorney General, the Secretary of State, the

20 Comptroller, the Treasurer, a member of the General Assembly,

21 the chief executive or any member of the legislative body of

22 any municipality in which a video gaming terminal is located or

23 proposed or which receives any video gaming revenue, or the

24 chief executive or any member of the legislative body of any

25 county containing any unincorporated area in which a video

26 gaming terminal is located or which receives any video gaming

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1 revenue.

2 (c) Any person or business entity applying for or holding a

3 manufacturer or distributor license, any affiliated entities

4 or persons of such business entity, and any entities or persons

5 soliciting a contribution or causing a contribution to be made

6 on behalf of such person or business entity, are prohibited

7 from making any contribution to any officeholder or declared

8 candidate or any political committee affiliated with any

9 officeholder or declared candidate, as defined in Section 9-1.8

10 of the Election Code.

11 The Board shall have authority to suspend, revoke, or

12 restrict the license and to impose civil penalties of up to

13 $100,000, for each violation of this subsection (c). A notice

14 of each such violation and the penalty imposed shall be

15 published on the Board's website and in the Illinois Register.

16 Payments received by the State pursuant to this subsection

17 shall be deposited into the General Revenue Fund.

18 Any person or business entity applying for or holding a

19 terminal operator license, any affiliated entities or persons

20 of such business entity, and any entities or persons soliciting

21 a contribution or causing a contribution to be made on behalf

22 of such person or business entity, are prohibited from making

23 any contribution to any officeholder or declared candidate or

24 any political committee affiliated with any officeholder or

25 declared candidate, as defined in Section 9-1.8 of the Election

26 Code, except that any such person or entity may make a

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1 contribution to the chief executive or any member of the

2 legislative body of any municipality in which a video gaming

3 terminal is located or proposed or which receives any video

4 gaming revenue, the chief executive or any member of the

5 legislative body of any county containing any unincorporated

6 area in which a video gaming terminal is located or which

7 receives any video gaming revenue, or any declared candidates

8 for such offices, so long as the video gaming terminal

9 associated with the terminal operator license held or applied

10 for is not located in the same municipality or county in which

11 the officeholder or declared candidate holds or is seeking

12 office. This prohibition shall commence upon filing of an

13 application for a license and shall continue for a period of 2

14 years after termination, suspension, or revocation of the

15 license.

16 Any officeholder or declared candidate or any political

17 committee affiliated with any officeholder or declared

18 candidate that has received a contribution in violation of this

19 subsection (c) shall pay an amount equal to the value of the

20 contribution to the State no more than 30 days after notice of

21 the violation concerning the contribution appears in the

22 Illinois Register. Payments received by the State pursuant to

23 this subsection shall be deposited into the General Revenue

24 Fund.

25 (d) The Board shall post on its website a list of all

26 persons, business entities, and affiliated entities prohibited

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1 from making contributions to any officeholder or declared

2 candidate political committee pursuant to subsection (c),

3 which list shall be updated and published on, at a minimum, a

4 semiannual basis.

5 Any person, business entity, or affiliated entity

6 prohibited from making contributions to any officeholder or

7 declared candidate political committee pursuant to subsection

8 (c) of this Section shall notify the Board within 7 days after

9 discovering any necessary change or addition to the information

10 relating to that person, business entity, or affiliated entity

11 contained in the list.

12 An individual who acts in good faith and in reliance on any

13 information contained in the list shall not be subject to any

14 penalties or liability imposed for a violation of this Section.

15 (e) If any provision of this Section is held invalid or its

16 application to any person or circumstance is held invalid, the

17 invalidity of that provision or application does not affect the

18 other provisions or applications of this Section that can be

19 given effect without the invalid application or provision.

20 Section 90-45. The Liquor Control Act of 1934 is amended by

21 changing Sections 5-1 and 6-30 as follows:

22 (235 ILCS 5/5-1) (from Ch. 43, par. 115)

23 Sec. 5-1. Licenses issued by the Illinois Liquor Control

24 Commission shall be of the following classes:

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1 (a) Manufacturer's license - Class 1. Distiller, Class 2.

2 Rectifier, Class 3. Brewer, Class 4. First Class Wine

3 Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.

4 First Class Winemaker, Class 7. Second Class Winemaker, Class

5 8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class

6 10. Class 1 Brewer, Class 11. Class 2 Brewer,

7 (b) Distributor's license,

8 (c) Importing Distributor's license,

9 (d) Retailer's license,

10 (e) Special Event Retailer's license (not-for-profit),

11 (f) Railroad license,

12 (g) Boat license,

13 (h) Non-Beverage User's license,

14 (i) Wine-maker's premises license,

15 (j) Airplane license,

16 (k) Foreign importer's license,

17 (l) Broker's license,

18 (m) Non-resident dealer's license,

19 (n) Brew Pub license,

20 (o) Auction liquor license,

21 (p) Caterer retailer license,

22 (q) Special use permit license,

23 (r) Winery shipper's license,

24 (s) Craft distiller tasting permit.

25 No person, firm, partnership, corporation, or other legal

26 business entity that is engaged in the manufacturing of wine

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1 may concurrently obtain and hold a wine-maker's license and a

2 wine manufacturer's license.

3 (a) A manufacturer's license shall allow the manufacture,

4 importation in bulk, storage, distribution and sale of

5 alcoholic liquor to persons without the State, as may be

6 permitted by law and to licensees in this State as follows:

7 Class 1. A Distiller may make sales and deliveries of

8 alcoholic liquor to distillers, rectifiers, importing

9 distributors, distributors and non-beverage users and to no

10 other licensees.

11 Class 2. A Rectifier, who is not a distiller, as defined

12 herein, may make sales and deliveries of alcoholic liquor to

13 rectifiers, importing distributors, distributors, retailers

14 and non-beverage users and to no other licensees.

15 Class 3. A Brewer may make sales and deliveries of beer to

16 importing distributors and distributors and may make sales as

17 authorized under subsection (e) of Section 6-4 of this Act.

18 Class 4. A first class wine-manufacturer may make sales and

19 deliveries of up to 50,000 gallons of wine to manufacturers,

20 importing distributors and distributors, and to no other

21 licensees.

22 Class 5. A second class Wine manufacturer may make sales

23 and deliveries of more than 50,000 gallons of wine to

24 manufacturers, importing distributors and distributors and to

25 no other licensees.

26 Class 6. A first-class wine-maker's license shall allow the

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1 manufacture of up to 50,000 gallons of wine per year, and the

2 storage and sale of such wine to distributors in the State and

3 to persons without the State, as may be permitted by law. A

4 person who, prior to June 1, 2008 (the effective date of Public

5 Act 95-634), is a holder of a first-class wine-maker's license

6 and annually produces more than 25,000 gallons of its own wine

7 and who distributes its wine to licensed retailers shall cease

8 this practice on or before July 1, 2008 in compliance with

9 Public Act 95-634.

10 Class 7. A second-class wine-maker's license shall allow

11 the manufacture of between 50,000 and 150,000 gallons of wine

12 per year, and the storage and sale of such wine to distributors

13 in this State and to persons without the State, as may be

14 permitted by law. A person who, prior to June 1, 2008 (the

15 effective date of Public Act 95-634), is a holder of a

16 second-class wine-maker's license and annually produces more

17 than 25,000 gallons of its own wine and who distributes its

18 wine to licensed retailers shall cease this practice on or

19 before July 1, 2008 in compliance with Public Act 95-634.

20 Class 8. A limited wine-manufacturer may make sales and

21 deliveries not to exceed 40,000 gallons of wine per year to

22 distributors, and to non-licensees in accordance with the

23 provisions of this Act.

24 Class 9. A craft distiller license shall allow the

25 manufacture of up to 100,000 ~~March 1, 2013 (Public Act 97-1166)~~

26 gallons of spirits by distillation per year and the storage of

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1 such spirits. If a craft distiller licensee, including a craft

2 distiller licensee who holds more than one craft distiller

3 license, is not affiliated with any other manufacturer of

4 spirits, then the craft distiller licensee may sell such

5 spirits to distributors in this State and up to 2,500 gallons

6 of such spirits to non-licensees to the extent permitted by any

7 exemption approved by the Commission pursuant to Section 6-4 of

8 this Act. A craft distiller license holder may store such

9 spirits at a non-contiguous licensed location, but at no time

10 shall a craft distiller license holder directly or indirectly

11 produce in the aggregate more than 100,000 gallons of spirits

12 per year.

13 A craft distiller licensee may hold more than one craft

14 distiller's license. However, a craft distiller that holds more

15 than one craft distiller license shall not manufacture, in the

16 aggregate, more than 100,000 gallons of spirits by distillation

17 per year and shall not sell, in the aggregate, more than 2,500

18 gallons of such spirits to non-licensees in accordance with an

19 exemption approved by the State Commission pursuant to Section

20 6-4 of this Act.

21 Any craft distiller licensed under this Act who on July 28,

22 2010 (the effective date of Public Act 96-1367) was licensed as

23 a distiller and manufactured no more spirits than permitted by

24 this Section shall not be required to pay the initial licensing

25 fee.

26 Class 10. A class 1 brewer license, which may only be

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1 issued to a licensed brewer or licensed non-resident dealer,

2 shall allow the manufacture of up to 930,000 gallons of beer

3 per year provided that the class 1 brewer licensee does not

4 manufacture more than a combined 930,000 gallons of beer per

5 year and is not a member of or affiliated with, directly or

6 indirectly, a manufacturer that produces more than 930,000

7 gallons of beer per year or any other alcoholic liquor. A class

8 1 brewer licensee may make sales and deliveries to importing

9 distributors and distributors and to retail licensees in

10 accordance with the conditions set forth in paragraph (18) of

11 subsection (a) of Section 3-12 of this Act.

12 Class 11. A class 2 brewer license, which may only be

13 issued to a licensed brewer or licensed non-resident dealer,

14 shall allow the manufacture of up to 3,720,000 gallons of beer

15 per year provided that the class 2 brewer licensee does not

16 manufacture more than a combined 3,720,000 gallons of beer per

17 year and is not a member of or affiliated with, directly or

18 indirectly, a manufacturer that produces more than 3,720,000

19 gallons of beer per year or any other alcoholic liquor. A class

20 2 brewer licensee may make sales and deliveries to importing

21 distributors and distributors, but shall not make sales or

22 deliveries to any other licensee. If the State Commission

23 provides prior approval, a class 2 brewer licensee may annually

24 transfer up to 3,720,000 gallons of beer manufactured by that

25 class 2 brewer licensee to the premises of a licensed class 2

26 brewer wholly owned and operated by the same licensee.

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1 (a-1) A manufacturer which is licensed in this State to

2 make sales or deliveries of alcoholic liquor to licensed

3 distributors or importing distributors and which enlists

4 agents, representatives, or individuals acting on its behalf

5 who contact licensed retailers on a regular and continual basis

6 in this State must register those agents, representatives, or

7 persons acting on its behalf with the State Commission.

8 Registration of agents, representatives, or persons acting

9 on behalf of a manufacturer is fulfilled by submitting a form

10 to the Commission. The form shall be developed by the

11 Commission and shall include the name and address of the

12 applicant, the name and address of the manufacturer he or she

13 represents, the territory or areas assigned to sell to or

14 discuss pricing terms of alcoholic liquor, and any other

15 questions deemed appropriate and necessary. All statements in

16 the forms required to be made by law or by rule shall be deemed

17 material, and any person who knowingly misstates any material

18 fact under oath in an application is guilty of a Class B

19 misdemeanor. Fraud, misrepresentation, false statements,

20 misleading statements, evasions, or suppression of material

21 facts in the securing of a registration are grounds for

22 suspension or revocation of the registration. The State

23 Commission shall post a list of registered agents on the

24 Commission's website.

25 (b) A distributor's license shall allow the wholesale

26 purchase and storage of alcoholic liquors and sale of alcoholic

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1 liquors to licensees in this State and to persons without the

2 State, as may be permitted by law. No person licensed as a

3 distributor shall be granted a non-resident dealer's license.

4 (c) An importing distributor's license may be issued to and

5 held by those only who are duly licensed distributors, upon the

6 filing of an application by a duly licensed distributor, with

7 the Commission and the Commission shall, without the payment of

8 any fee, immediately issue such importing distributor's

9 license to the applicant, which shall allow the importation of

10 alcoholic liquor by the licensee into this State from any point

11 in the United States outside this State, and the purchase of

12 alcoholic liquor in barrels, casks or other bulk containers and

13 the bottling of such alcoholic liquors before resale thereof,

14 but all bottles or containers so filled shall be sealed,

15 labeled, stamped and otherwise made to comply with all

16 provisions, rules and regulations governing manufacturers in

17 the preparation and bottling of alcoholic liquors. The

18 importing distributor's license shall permit such licensee to

19 purchase alcoholic liquor from Illinois licensed non-resident

20 dealers and foreign importers only. No person licensed as an

21 importing distributor shall be granted a non-resident dealer's

22 license.

23 (d) A retailer's license shall allow the licensee to sell

24 and offer for sale at retail, only in the premises specified in

25 the license, alcoholic liquor for use or consumption, but not

26 for resale in any form. Nothing in Public Act 95-634 shall

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1 deny, limit, remove, or restrict the ability of a holder of a

2 retailer's license to transfer, deliver, or ship alcoholic

3 liquor to the purchaser for use or consumption subject to any

4 applicable local law or ordinance. Any retail license issued to

5 a manufacturer shall only permit the manufacturer to sell beer

6 at retail on the premises actually occupied by the

7 manufacturer. For the purpose of further describing the type of

8 business conducted at a retail licensed premises, a retailer's

9 licensee may be designated by the State Commission as (i) an on

10 premise consumption retailer, (ii) an off premise sale

11 retailer, or (iii) a combined on premise consumption and off

12 premise sale retailer.

13 Notwithstanding any other provision of this subsection

14 (d), a retail licensee may sell alcoholic liquors to a special

15 event retailer licensee for resale to the extent permitted

16 under subsection (e).

17 (e) A special event retailer's license (not-for-profit)

18 shall permit the licensee to purchase alcoholic liquors from an

19 Illinois licensed distributor (unless the licensee purchases

20 less than $500 of alcoholic liquors for the special event, in

21 which case the licensee may purchase the alcoholic liquors from

22 a licensed retailer) and shall allow the licensee to sell and

23 offer for sale, at retail, alcoholic liquors for use or

24 consumption, but not for resale in any form and only at the

25 location and on the specific dates designated for the special

26 event in the license. An applicant for a special event retailer

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1 license must (i) furnish with the application: (A) a resale

2 number issued under Section 2c of the Retailers' Occupation Tax

3 Act or evidence that the applicant is registered under Section

4 2a of the Retailers' Occupation Tax Act, (B) a current, valid

5 exemption identification number issued under Section 1g of the

6 Retailers' Occupation Tax Act, and a certification to the

7 Commission that the purchase of alcoholic liquors will be a

8 tax-exempt purchase, or (C) a statement that the applicant is

9 not registered under Section 2a of the Retailers' Occupation

10 Tax Act, does not hold a resale number under Section 2c of the

11 Retailers' Occupation Tax Act, and does not hold an exemption

12 number under Section 1g of the Retailers' Occupation Tax Act,

13 in which event the Commission shall set forth on the special

14 event retailer's license a statement to that effect; (ii)

15 submit with the application proof satisfactory to the State

16 Commission that the applicant will provide dram shop liability

17 insurance in the maximum limits; and (iii) show proof

18 satisfactory to the State Commission that the applicant has

19 obtained local authority approval.

20 (f) A railroad license shall permit the licensee to import

21 alcoholic liquors into this State from any point in the United

22 States outside this State and to store such alcoholic liquors

23 in this State; to make wholesale purchases of alcoholic liquors

24 directly from manufacturers, foreign importers, distributors

25 and importing distributors from within or outside this State;

26 and to store such alcoholic liquors in this State; provided

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1 that the above powers may be exercised only in connection with

2 the importation, purchase or storage of alcoholic liquors to be

3 sold or dispensed on a club, buffet, lounge or dining car

4 operated on an electric, gas or steam railway in this State;

5 and provided further, that railroad licensees exercising the

6 above powers shall be subject to all provisions of Article VIII

7 of this Act as applied to importing distributors. A railroad

8 license shall also permit the licensee to sell or dispense

9 alcoholic liquors on any club, buffet, lounge or dining car

10 operated on an electric, gas or steam railway regularly

11 operated by a common carrier in this State, but shall not

12 permit the sale for resale of any alcoholic liquors to any

13 licensee within this State. A license shall be obtained for

14 each car in which such sales are made.

15 (g) A boat license shall allow the sale of alcoholic liquor

16 in individual drinks, on any passenger boat regularly operated

17 as a common carrier on navigable waters in this State or on any

18 riverboat operated under theIllinois ~~Riverboat~~ Gambling Act,

19 which boat or riverboat maintains a public dining room or

20 restaurant thereon.

21 (h) A non-beverage user's license shall allow the licensee

22 to purchase alcoholic liquor from a licensed manufacturer or

23 importing distributor, without the imposition of any tax upon

24 the business of such licensed manufacturer or importing

25 distributor as to such alcoholic liquor to be used by such

26 licensee solely for the non-beverage purposes set forth in

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1 subsection (a) of Section 8-1 of this Act, and such licenses

2 shall be divided and classified and shall permit the purchase,

3 possession and use of limited and stated quantities of

4 alcoholic liquor as follows:

5 Class 1, not to exceed .........................500 gallons

6 Class 2, not to exceed .......................1,000 gallons

7 Class 3, not to exceed .......................5,000 gallons

8 Class 4, not to exceed ......................10,000 gallons

9 Class 5, not to exceed ....................... 50,000 gallons

10 (i) A wine-maker's premises license shall allow a licensee

11 that concurrently holds a first-class wine-maker's license to

12 sell and offer for sale at retail in the premises specified in

13 such license not more than 50,000 gallons of the first-class

14 wine-maker's wine that is made at the first-class wine-maker's

15 licensed premises per year for use or consumption, but not for

16 resale in any form. A wine-maker's premises license shall allow

17 a licensee who concurrently holds a second-class wine-maker's

18 license to sell and offer for sale at retail in the premises

19 specified in such license up to 100,000 gallons of the

20 second-class wine-maker's wine that is made at the second-class

21 wine-maker's licensed premises per year for use or consumption

22 but not for resale in any form. A wine-maker's premises license

23 shall allow a licensee that concurrently holds a first-class

24 wine-maker's license or a second-class wine-maker's license to

25 sell and offer for sale at retail at the premises specified in

26 the wine-maker's premises license, for use or consumption but

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1 not for resale in any form, any beer, wine, and spirits

2 purchased from a licensed distributor. Upon approval from the

3 State Commission, a wine-maker's premises license shall allow

4 the licensee to sell and offer for sale at (i) the wine-maker's

5 licensed premises and (ii) at up to 2 additional locations for

6 use and consumption and not for resale. Each location shall

7 require additional licensing per location as specified in

8 Section 5-3 of this Act. A wine-maker's premises licensee shall

9 secure liquor liability insurance coverage in an amount at

10 least equal to the maximum liability amounts set forth in

11 subsection (a) of Section 6-21 of this Act.

12 (j) An airplane license shall permit the licensee to import

13 alcoholic liquors into this State from any point in the United

14 States outside this State and to store such alcoholic liquors

15 in this State; to make wholesale purchases of alcoholic liquors

16 directly from manufacturers, foreign importers, distributors

17 and importing distributors from within or outside this State;

18 and to store such alcoholic liquors in this State; provided

19 that the above powers may be exercised only in connection with

20 the importation, purchase or storage of alcoholic liquors to be

21 sold or dispensed on an airplane; and provided further, that

22 airplane licensees exercising the above powers shall be subject

23 to all provisions of Article VIII of this Act as applied to

24 importing distributors. An airplane licensee shall also permit

25 the sale or dispensing of alcoholic liquors on any passenger

26 airplane regularly operated by a common carrier in this State,

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1 but shall not permit the sale for resale of any alcoholic

2 liquors to any licensee within this State. A single airplane

3 license shall be required of an airline company if liquor

4 service is provided on board aircraft in this State. The annual

5 fee for such license shall be as determined in Section 5-3.

6 (k) A foreign importer's license shall permit such licensee

7 to purchase alcoholic liquor from Illinois licensed

8 non-resident dealers only, and to import alcoholic liquor other

9 than in bulk from any point outside the United States and to

10 sell such alcoholic liquor to Illinois licensed importing

11 distributors and to no one else in Illinois; provided that (i)

12 the foreign importer registers with the State Commission every

13 brand of alcoholic liquor that it proposes to sell to Illinois

14 licensees during the license period, (ii) the foreign importer

15 complies with all of the provisions of Section 6-9 of this Act

16 with respect to registration of such Illinois licensees as may

17 be granted the right to sell such brands at wholesale, and

18 (iii) the foreign importer complies with the provisions of

19 Sections 6-5 and 6-6 of this Act to the same extent that these

20 provisions apply to manufacturers.

21 (l) (i) A broker's license shall be required of all persons

22 who solicit orders for, offer to sell or offer to supply

23 alcoholic liquor to retailers in the State of Illinois, or who

24 offer to retailers to ship or cause to be shipped or to make

25 contact with distillers, rectifiers, brewers or manufacturers

26 or any other party within or without the State of Illinois in

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1 order that alcoholic liquors be shipped to a distributor,

2 importing distributor or foreign importer, whether such

3 solicitation or offer is consummated within or without the

4 State of Illinois.

5 No holder of a retailer's license issued by the Illinois

6 Liquor Control Commission shall purchase or receive any

7 alcoholic liquor, the order for which was solicited or offered

8 for sale to such retailer by a broker unless the broker is the

9 holder of a valid broker's license.

10 The broker shall, upon the acceptance by a retailer of the

11 broker's solicitation of an order or offer to sell or supply or

12 deliver or have delivered alcoholic liquors, promptly forward

13 to the Illinois Liquor Control Commission a notification of

14 said transaction in such form as the Commission may by

15 regulations prescribe.

16 (ii) A broker's license shall be required of a person

17 within this State, other than a retail licensee, who, for a fee

18 or commission, promotes, solicits, or accepts orders for

19 alcoholic liquor, for use or consumption and not for resale, to

20 be shipped from this State and delivered to residents outside

21 of this State by an express company, common carrier, or

22 contract carrier. This Section does not apply to any person who

23 promotes, solicits, or accepts orders for wine as specifically

24 authorized in Section 6-29 of this Act.

25 A broker's license under this subsection (l) shall not

26 entitle the holder to buy or sell any alcoholic liquors for his

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1 own account or to take or deliver title to such alcoholic

2 liquors.

3 This subsection (l) shall not apply to distributors,

4 employees of distributors, or employees of a manufacturer who

5 has registered the trademark, brand or name of the alcoholic

6 liquor pursuant to Section 6-9 of this Act, and who regularly

7 sells such alcoholic liquor in the State of Illinois only to

8 its registrants thereunder.

9 Any agent, representative, or person subject to

10 registration pursuant to subsection (a-1) of this Section shall

11 not be eligible to receive a broker's license.

12 (m) A non-resident dealer's license shall permit such

13 licensee to ship into and warehouse alcoholic liquor into this

14 State from any point outside of this State, and to sell such

15 alcoholic liquor to Illinois licensed foreign importers and

16 importing distributors and to no one else in this State;

17 provided that (i) said non-resident dealer shall register with

18 the Illinois Liquor Control Commission each and every brand of

19 alcoholic liquor which it proposes to sell to Illinois

20 licensees during the license period, (ii) it shall comply with

21 all of the provisions of Section 6-9 hereof with respect to

22 registration of such Illinois licensees as may be granted the

23 right to sell such brands at wholesale, and (iii) the

24 non-resident dealer shall comply with the provisions of

25 Sections 6-5 and 6-6 of this Act to the same extent that these

26 provisions apply to manufacturers. No person licensed as a

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1 non-resident dealer shall be granted a distributor's or

2 importing distributor's license.

3 (n) A brew pub license shall allow the licensee to only (i)

4 manufacture up to 155,000 gallons of beer per year only on the

5 premises specified in the license, (ii) make sales of the beer

6 manufactured on the premises or, with the approval of the

7 Commission, beer manufactured on another brew pub licensed

8 premises that is wholly owned and operated by the same licensee

9 to importing distributors, distributors, and to non-licensees

10 for use and consumption, (iii) store the beer upon the

11 premises, (iv) sell and offer for sale at retail from the

12 licensed premises for off-premises consumption no more than

13 155,000 gallons per year so long as such sales are only made

14 in-person, (v) sell and offer for sale at retail for use and

15 consumption on the premises specified in the license any form

16 of alcoholic liquor purchased from a licensed distributor or

17 importing distributor, and (vi) with the prior approval of the

18 Commission, annually transfer no more than 155,000 gallons of

19 beer manufactured on the premises to a licensed brew pub wholly

20 owned and operated by the same licensee.

21 A brew pub licensee shall not under any circumstance sell

22 or offer for sale beer manufactured by the brew pub licensee to

23 retail licensees.

24 A person who holds a class 2 brewer license may

25 simultaneously hold a brew pub license if the class 2 brewer

26 (i) does not, under any circumstance, sell or offer for sale

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1 beer manufactured by the class 2 brewer to retail licensees;

2 (ii) does not hold more than 3 brew pub licenses in this State;

3 (iii) does not manufacture more than a combined 3,720,000

4 gallons of beer per year, including the beer manufactured at

5 the brew pub; and (iv) is not a member of or affiliated with,

6 directly or indirectly, a manufacturer that produces more than

7 3,720,000 gallons of beer per year or any other alcoholic

8 liquor.

9 Notwithstanding any other provision of this Act, a licensed

10 brewer, class 2 brewer, or non-resident dealer who before July

11 1, 2015 manufactured less than 3,720,000 gallons of beer per

12 year and held a brew pub license on or before July 1, 2015 may

13 (i) continue to qualify for and hold that brew pub license for

14 the licensed premises and (ii) manufacture more than 3,720,000

15 gallons of beer per year and continue to qualify for and hold

16 that brew pub license if that brewer, class 2 brewer, or

17 non-resident dealer does not simultaneously hold a class 1

18 brewer license and is not a member of or affiliated with,

19 directly or indirectly, a manufacturer that produces more than

20 3,720,000 gallons of beer per year or that produces any other

21 alcoholic liquor.

22 (o) A caterer retailer license shall allow the holder to

23 serve alcoholic liquors as an incidental part of a food service

24 that serves prepared meals which excludes the serving of snacks

25 as the primary meal, either on or off-site whether licensed or

26 unlicensed.

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1 (p) An auction liquor license shall allow the licensee to

2 sell and offer for sale at auction wine and spirits for use or

3 consumption, or for resale by an Illinois liquor licensee in

4 accordance with provisions of this Act. An auction liquor

5 license will be issued to a person and it will permit the

6 auction liquor licensee to hold the auction anywhere in the

7 State. An auction liquor license must be obtained for each

8 auction at least 14 days in advance of the auction date.

9 (q) A special use permit license shall allow an Illinois

10 licensed retailer to transfer a portion of its alcoholic liquor

11 inventory from its retail licensed premises to the premises

12 specified in the license hereby created, and to sell or offer

13 for sale at retail, only in the premises specified in the

14 license hereby created, the transferred alcoholic liquor for

15 use or consumption, but not for resale in any form. A special

16 use permit license may be granted for the following time

17 periods: one day or less; 2 or more days to a maximum of 15 days

18 per location in any 12-month ~~12 month~~period. An applicant for

19 the special use permit license must also submit with the

20 application proof satisfactory to the State Commission that the

21 applicant will provide dram shop liability insurance to the

22 maximum limits and have local authority approval.

23 (r) A winery shipper's license shall allow a person with a

24 first-class or second-class wine manufacturer's license, a

25 first-class or second-class wine-maker's license, or a limited

26 wine manufacturer's license or who is licensed to make wine

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1 under the laws of another state to ship wine made by that

2 licensee directly to a resident of this State who is 21 years

3 of age or older for that resident's personal use and not for

4 resale. Prior to receiving a winery shipper's license, an

5 applicant for the license must provide the Commission with a

6 true copy of its current license in any state in which it is

7 licensed as a manufacturer of wine. An applicant for a winery

8 shipper's license must also complete an application form that

9 provides any other information the Commission deems necessary.

10 The application form shall include all addresses from which the

11 applicant for a winery shipper's license intends to ship wine,

12 including the name and address of any third party, except for a

13 common carrier, authorized to ship wine on behalf of the

14 manufacturer. The application form shall include an

15 acknowledgement consenting to the jurisdiction of the

16 Commission, the Illinois Department of Revenue, and the courts

17 of this State concerning the enforcement of this Act and any

18 related laws, rules, and regulations, including authorizing

19 the Department of Revenue and the Commission to conduct audits

20 for the purpose of ensuring compliance with Public Act 95-634,

21 and an acknowledgement that the wine manufacturer is in

22 compliance with Section 6-2 of this Act. Any third party,

23 except for a common carrier, authorized to ship wine on behalf

24 of a first-class or second-class wine manufacturer's licensee,

25 a first-class or second-class wine-maker's licensee, a limited

26 wine manufacturer's licensee, or a person who is licensed to

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1 make wine under the laws of another state shall also be

2 disclosed by the winery shipper's licensee, and a copy of the

3 written appointment of the third-party wine provider, except

4 for a common carrier, to the wine manufacturer shall be filed

5 with the State Commission as a supplement to the winery

6 shipper's license application or any renewal thereof. The

7 winery shipper's license holder shall affirm under penalty of

8 perjury, as part of the winery shipper's license application or

9 renewal, that he or she only ships wine, either directly or

10 indirectly through a third-party provider, from the licensee's

11 own production.

12 Except for a common carrier, a third-party provider

13 shipping wine on behalf of a winery shipper's license holder is

14 the agent of the winery shipper's license holder and, as such,

15 a winery shipper's license holder is responsible for the acts

16 and omissions of the third-party provider acting on behalf of

17 the license holder. A third-party provider, except for a common

18 carrier, that engages in shipping wine into Illinois on behalf

19 of a winery shipper's license holder shall consent to the

20 jurisdiction of the State Commission and the State. Any

21 third-party, except for a common carrier, holding such an

22 appointment shall, by February 1 of each calendar year, file

23 with the State Commission a statement detailing each shipment

24 made to an Illinois resident. The State Commission shall adopt

25 rules as soon as practicable to implement the requirements of

26 Public Act 99-904 ~~this amendatory Act of the 99th General~~

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1 ~~Assembly~~ and shall adopt rules prohibiting any such third-party

2 appointment of a third-party provider, except for a common

3 carrier, that has been deemed by the State Commission to have

4 violated the provisions of this Act with regard to any winery

5 shipper licensee.

6 A winery shipper licensee must pay to the Department of

7 Revenue the State liquor gallonage tax under Section 8-1 for

8 all wine that is sold by the licensee and shipped to a person

9 in this State. For the purposes of Section 8-1, a winery

10 shipper licensee shall be taxed in the same manner as a

11 manufacturer of wine. A licensee who is not otherwise required

12 to register under the Retailers' Occupation Tax Act must

13 register under the Use Tax Act to collect and remit use tax to

14 the Department of Revenue for all gallons of wine that are sold

15 by the licensee and shipped to persons in this State. If a

16 licensee fails to remit the tax imposed under this Act in

17 accordance with the provisions of Article VIII of this Act, the

18 winery shipper's license shall be revoked in accordance with

19 the provisions of Article VII of this Act. If a licensee fails

20 to properly register and remit tax under the Use Tax Act or the

21 Retailers' Occupation Tax Act for all wine that is sold by the

22 winery shipper and shipped to persons in this State, the winery

23 shipper's license shall be revoked in accordance with the

24 provisions of Article VII of this Act.

25 A winery shipper licensee must collect, maintain, and

26 submit to the Commission on a semi-annual basis the total

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1 number of cases per resident of wine shipped to residents of

2 this State. A winery shipper licensed under this subsection (r)

3 must comply with the requirements of Section 6-29 of this Act.

4 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of

5 Section 3-12, the State Commission may receive, respond to, and

6 investigate any complaint and impose any of the remedies

7 specified in paragraph (1) of subsection (a) of Section 3-12.

8 (s) A craft distiller tasting permit license shall allow an

9 Illinois licensed craft distiller to transfer a portion of its

10 alcoholic liquor inventory from its craft distiller licensed

11 premises to the premises specified in the license hereby

12 created and to conduct a sampling, only in the premises

13 specified in the license hereby created, of the transferred

14 alcoholic liquor in accordance with subsection (c) of Section

15 6-31 of this Act. The transferred alcoholic liquor may not be

16 sold or resold in any form. An applicant for the craft

17 distiller tasting permit license must also submit with the

18 application proof satisfactory to the State Commission that the

19 applicant will provide dram shop liability insurance to the

20 maximum limits and have local authority approval.

21 (Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;

22 98-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.

23 7-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,

24 eff. 1-1-17; revised 9-15-16.)

25 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)

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1 Sec. 6-30. Notwithstanding any other provision of this Act,

2 the Illinois Gaming Board shall have exclusive authority to

3 establish the hours for sale and consumption of alcoholic

4 liquor on board a riverboat during riverboat gambling

5 excursions and in a casino conducted in accordance with the

6 Illinois ~~Riverboat~~Gambling Act.

7 (Source: P.A. 87-826.)

8 Section 90-46. The Illinois Public Aid Code is amended by

9 changing Section 10-17.15 as follows:

10 (305 ILCS 5/10-17.15)

11 Sec. 10-17.15. Certification of information to State

12 gaming licensees.

13 (a) For purposes of this Section, "State gaming licensee"

14 means, as applicable, an organization licensee or advance

15 deposit wagering licensee licensed under the Illinois Horse

16 Racing Act of 1975, an owners licensee licensed under the

17 Illinois ~~Riverboat~~ Gambling Act, or a licensee that operates,

18 under any law of this State, one or more facilities or gaming

19 locations at which lawful gambling is authorized and licensed

20 as provided in the Illinois ~~Riverboat~~ Gambling Act.

21 (b) The Department may provide, by rule, for certification

22 to any State gaming licensee of past due child support owed by

23 a responsible relative under a support order entered by a court

24 or administrative body of this or any other State on behalf of

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1 a resident or non-resident receiving child support services

2 under this Article in accordance with the requirements of Title

3 IV-D, Part D, of the Social Security Act. The State gaming

4 licensee shall have the ability to withhold from winnings

5 required to be reported to the Internal Revenue Service on Form

6 W-2G, up to the full amount of winnings necessary to pay the

7 winner's past due child support. The rule shall provide for

8 notice to and an opportunity to be heard by each responsible

9 relative affected and any final administrative decision

10 rendered by the Department shall be reviewed only under and in

11 accordance with the Administrative Review Law.

12 (c) For withholding of winnings, the State gaming licensee

13 shall be entitled to an administrative fee not to exceed the

14 lesser of 4% of the total amount of cash winnings paid to the

15 gambling winner or $150.

16 (d) In no event may the total amount withheld from the cash

17 payout, including the administrative fee, exceed the total cash

18 winnings claimed by the obligor. If the cash payout claimed is

19 greater than the amount sufficient to satisfy the obligor's

20 delinquent child support payments, the State gaming licensee

21 shall pay the obligor the remaining balance of the payout, less

22 the administrative fee authorized by subsection (c) of this

23 Section, at the time it is claimed.

24 (e) A State gaming licensee who in good faith complies with

25 the requirements of this Section shall not be liable to the

26 gaming winner or any other individual or entity.

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1 (Source: P.A. 98-318, eff. 8-12-13.)

2 Section 90-47. The Firearm Concealed Carry Act is amended

3 by changing Section 65 as follows:

4 (430 ILCS 66/65)

5 Sec. 65. Prohibited areas.

6 (a) A licensee under this Act shall not knowingly carry a

7 firearm on or into:

8 (1) Any building, real property, and parking area under

9 the control of a public or private elementary or secondary

10 school.

11 (2) Any building, real property, and parking area under

12 the control of a pre-school or child care facility,

13 including any room or portion of a building under the

14 control of a pre-school or child care facility. Nothing in

15 this paragraph shall prevent the operator of a child care

16 facility in a family home from owning or possessing a

17 firearm in the home or license under this Act, if no child

18 under child care at the home is present in the home or the

19 firearm in the home is stored in a locked container when a

20 child under child care at the home is present in the home.

21 (3) Any building, parking area, or portion of a

22 building under the control of an officer of the executive

23 or legislative branch of government, provided that nothing

24 in this paragraph shall prohibit a licensee from carrying a

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1 concealed firearm onto the real property, bikeway, or trail

2 in a park regulated by the Department of Natural Resources

3 or any other designated public hunting area or building

4 where firearm possession is permitted as established by the

5 Department of Natural Resources under Section 1.8 of the

6 Wildlife Code.

7 (4) Any building designated for matters before a

8 circuit court, appellate court, or the Supreme Court, or

9 any building or portion of a building under the control of

10 the Supreme Court.

11 (5) Any building or portion of a building under the

12 control of a unit of local government.

13 (6) Any building, real property, and parking area under

14 the control of an adult or juvenile detention or

15 correctional institution, prison, or jail.

16 (7) Any building, real property, and parking area under

17 the control of a public or private hospital or hospital

18 affiliate, mental health facility, or nursing home.

19 (8) Any bus, train, or form of transportation paid for

20 in whole or in part with public funds, and any building,

21 real property, and parking area under the control of a

22 public transportation facility paid for in whole or in part

23 with public funds.

24 (9) Any building, real property, and parking area under

25 the control of an establishment that serves alcohol on its

26 premises, if more than 50% of the establishment's gross

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1 receipts within the prior 3 months is from the sale of

2 alcohol. The owner of an establishment who knowingly fails

3 to prohibit concealed firearms on its premises as provided

4 in this paragraph or who knowingly makes a false statement

5 or record to avoid the prohibition on concealed firearms

6 under this paragraph is subject to the penalty under

7 subsection (c-5) of Section 10-1 of the Liquor Control Act

8 of 1934.

9 (10) Any public gathering or special event conducted on

10 property open to the public that requires the issuance of a

11 permit from the unit of local government, provided this

12 prohibition shall not apply to a licensee who must walk

13 through a public gathering in order to access his or her

14 residence, place of business, or vehicle.

15 (11) Any building or real property that has been issued

16 a Special Event Retailer's license as defined in Section

17 1-3.17.1 of the Liquor Control Act during the time

18 designated for the sale of alcohol by the Special Event

19 Retailer's license, or a Special use permit license as

20 defined in subsection (q) of Section 5-1 of the Liquor

21 Control Act during the time designated for the sale of

22 alcohol by the Special use permit license.

23 (12) Any public playground.

24 (13) Any public park, athletic area, or athletic

25 facility under the control of a municipality or park

26 district, provided nothing in this Section shall prohibit a

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1 licensee from carrying a concealed firearm while on a trail

2 or bikeway if only a portion of the trail or bikeway

3 includes a public park.

4 (14) Any real property under the control of the Cook

5 County Forest Preserve District.

6 (15) Any building, classroom, laboratory, medical

7 clinic, hospital, artistic venue, athletic venue,

8 entertainment venue, officially recognized

9 university-related organization property, whether owned or

10 leased, and any real property, including parking areas,

11 sidewalks, and common areas under the control of a public

12 or private community college, college, or university.

13 (16) Any building, real property, or parking area under

14 the control of a gaming facility licensed under the

15 Illinois ~~Riverboat~~ Gambling Act or the Illinois Horse

16 Racing Act of 1975, including an inter-track wagering

17 location licensee.

18 (17) Any stadium, arena, or the real property or

19 parking area under the control of a stadium, arena, or any

20 collegiate or professional sporting event.

21 (18) Any building, real property, or parking area under

22 the control of a public library.

23 (19) Any building, real property, or parking area under

24 the control of an airport.

25 (20) Any building, real property, or parking area under

26 the control of an amusement park.

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1 (21) Any building, real property, or parking area under

2 the control of a zoo or museum.

3 (22) Any street, driveway, parking area, property,

4 building, or facility, owned, leased, controlled, or used

5 by a nuclear energy, storage, weapons, or development site

6 or facility regulated by the federal Nuclear Regulatory

7 Commission. The licensee shall not under any circumstance

8 store a firearm or ammunition in his or her vehicle or in a

9 compartment or container within a vehicle located anywhere

10 in or on the street, driveway, parking area, property,

11 building, or facility described in this paragraph.

12 (23) Any area where firearms are prohibited under

13 federal law.

14 (a-5) Nothing in this Act shall prohibit a public or

15 private community college, college, or university from:

16 (1) prohibiting persons from carrying a firearm within

17 a vehicle owned, leased, or controlled by the college or

18 university;

19 (2) developing resolutions, regulations, or policies

20 regarding student, employee, or visitor misconduct and

21 discipline, including suspension and expulsion;

22 (3) developing resolutions, regulations, or policies

23 regarding the storage or maintenance of firearms, which

24 must include designated areas where persons can park

25 vehicles that carry firearms; and

26 (4) permitting the carrying or use of firearms for the

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1 purpose of instruction and curriculum of officially

2 recognized programs, including but not limited to military

3 science and law enforcement training programs, or in any

4 designated area used for hunting purposes or target

5 shooting.

6 (a-10) The owner of private real property of any type may

7 prohibit the carrying of concealed firearms on the property

8 under his or her control. The owner must post a sign in

9 accordance with subsection (d) of this Section indicating that

10 firearms are prohibited on the property, unless the property is

11 a private residence.

12 (b) Notwithstanding subsections (a), (a-5), and (a-10) of

13 this Section except under paragraph (22) or (23) of subsection

14 (a), any licensee prohibited from carrying a concealed firearm

15 into the parking area of a prohibited location specified in

16 subsection (a), (a-5), or (a-10) of this Section shall be

17 permitted to carry a concealed firearm on or about his or her

18 person within a vehicle into the parking area and may store a

19 firearm or ammunition concealed in a case within a locked

20 vehicle or locked container out of plain view within the

21 vehicle in the parking area. A licensee may carry a concealed

22 firearm in the immediate area surrounding his or her vehicle

23 within a prohibited parking lot area only for the limited

24 purpose of storing or retrieving a firearm within the vehicle's

25 trunk. For purposes of this subsection, "case" includes a glove

26 compartment or console that completely encloses the concealed

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1 firearm or ammunition, the trunk of the vehicle, or a firearm

2 carrying box, shipping box, or other container.

3 (c) A licensee shall not be in violation of this Section

4 while he or she is traveling along a public right of way that

5 touches or crosses any of the premises under subsection (a),

6 (a-5), or (a-10) of this Section if the concealed firearm is

7 carried on his or her person in accordance with the provisions

8 of this Act or is being transported in a vehicle by the

9 licensee in accordance with all other applicable provisions of

10 law.

11 (d) Signs stating that the carrying of firearms is

12 prohibited shall be clearly and conspicuously posted at the

13 entrance of a building, premises, or real property specified in

14 this Section as a prohibited area, unless the building or

15 premises is a private residence. Signs shall be of a uniform

16 design as established by the Department and shall be 4 inches

17 by 6 inches in size. The Department shall adopt rules for

18 standardized signs to be used under this subsection.

19 (Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)

20 Section 90-50. The Criminal Code of 2012 is amended by

21 changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as

22 follows:

23 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

24 Sec. 28-1. Gambling.

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1 (a) A person commits gambling when he or she:

2 (1) knowingly plays a game of chance or skill for money

3 or other thing of value, unless excepted in subsection (b)

4 of this Section;

5 (2) knowingly makes a wager upon the result of any

6 game, contest, or any political nomination, appointment or

7 election;

8 (3) knowingly operates, keeps, owns, uses, purchases,

9 exhibits, rents, sells, bargains for the sale or lease of,

10 manufactures or distributes any gambling device;

11 (4) contracts to have or give himself or herself or

12 another the option to buy or sell, or contracts to buy or

13 sell, at a future time, any grain or other commodity

14 whatsoever, or any stock or security of any company, where

15 it is at the time of making such contract intended by both

16 parties thereto that the contract to buy or sell, or the

17 option, whenever exercised, or the contract resulting

18 therefrom, shall be settled, not by the receipt or delivery

19 of such property, but by the payment only of differences in

20 prices thereof; however, the issuance, purchase, sale,

21 exercise, endorsement or guarantee, by or through a person

22 registered with the Secretary of State pursuant to Section

23 8 of the Illinois Securities Law of 1953, or by or through

24 a person exempt from such registration under said Section

25 8, of a put, call, or other option to buy or sell

26 securities which have been registered with the Secretary of

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1 State or which are exempt from such registration under

2 Section 3 of the Illinois Securities Law of 1953 is not

3 gambling within the meaning of this paragraph (4);

4 (5) knowingly owns or possesses any book, instrument or

5 apparatus by means of which bets or wagers have been, or

6 are, recorded or registered, or knowingly possesses any

7 money which he has received in the course of a bet or

8 wager;

9 (6) knowingly sells pools upon the result of any game

10 or contest of skill or chance, political nomination,

11 appointment or election;

12 (7) knowingly sets up or promotes any lottery or sells,

13 offers to sell or transfers any ticket or share for any

14 lottery;

15 (8) knowingly sets up or promotes any policy game or

16 sells, offers to sell or knowingly possesses or transfers

17 any policy ticket, slip, record, document or other similar

18 device;

19 (9) knowingly drafts, prints or publishes any lottery

20 ticket or share, or any policy ticket, slip, record,

21 document or similar device, except for such activity

22 related to lotteries, bingo games and raffles authorized by

23 and conducted in accordance with the laws of Illinois or

24 any other state or foreign government;

25 (10) knowingly advertises any lottery or policy game,

26 except for such activity related to lotteries, bingo games

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1 and raffles authorized by and conducted in accordance with

2 the laws of Illinois or any other state;

3 (11) knowingly transmits information as to wagers,

4 betting odds, or changes in betting odds by telephone,

5 telegraph, radio, semaphore or similar means; or knowingly

6 installs or maintains equipment for the transmission or

7 receipt of such information; except that nothing in this

8 subdivision (11) prohibits transmission or receipt of such

9 information for use in news reporting of sporting events or

10 contests; or

11 (12) knowingly establishes, maintains, or operates an

12 Internet site that permits a person to play a game of

13 chance or skill for money or other thing of value by means

14 of the Internet or to make a wager upon the result of any

15 game, contest, political nomination, appointment, or

16 election by means of the Internet. This item (12) does not

17 apply to activities referenced in items (6) and (6.1) of

18 subsection (b) of this Section.

19 (b) Participants in any of the following activities shall

20 not be convicted of gambling:

21 (1) Agreements to compensate for loss caused by the

22 happening of chance including without limitation contracts

23 of indemnity or guaranty and life or health or accident

24 insurance.

25 (2) Offers of prizes, award or compensation to the

26 actual contestants in any bona fide contest for the

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1 determination of skill, speed, strength or endurance or to

2 the owners of animals or vehicles entered in such contest.

3 (3) Pari-mutuel betting as authorized by the law of

4 this State.

5 (4) Manufacture of gambling devices, including the

6 acquisition of essential parts therefor and the assembly

7 thereof, for transportation in interstate or foreign

8 commerce to any place outside this State when such

9 transportation is not prohibited by any applicable Federal

10 law; or the manufacture, distribution, or possession of

11 video gaming terminals, as defined in the Video Gaming Act,

12 by manufacturers, distributors, and terminal operators

13 licensed to do so under the Video Gaming Act.

14 (5) The game commonly known as "bingo", when conducted

15 in accordance with the Bingo License and Tax Act.

16 (6) Lotteries when conducted by the State of Illinois

17 in accordance with the Illinois Lottery Law. This exemption

18 includes any activity conducted by the Department of

19 Revenue to sell lottery tickets pursuant to the provisions

20 of the Illinois Lottery Law and its rules.

21 (6.1) The purchase of lottery tickets through the

22 Internet for a lottery conducted by the State of Illinois

23 under the program established in Section 7.12 of the

24 Illinois Lottery Law.

25 (7) Possession of an antique slot machine that is

26 neither used nor intended to be used in the operation or

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1 promotion of any unlawful gambling activity or enterprise.

2 For the purpose of this subparagraph (b)(7), an antique

3 slot machine is one manufactured 25 years ago or earlier.

4 (8) Raffles and poker runs when conducted in accordance

5 with the Raffles and Poker Runs Act.

6 (9) Charitable games when conducted in accordance with

7 the Charitable Games Act.

8 (10) Pull tabs and jar games when conducted under the

9 Illinois Pull Tabs and Jar Games Act.

10 (11) Gambling games ~~conducted on riverboats~~when

11 authorized by the Illinois ~~Riverboat~~ Gambling Act.

12 (12) Video gaming terminal games at a licensed

13 establishment, licensed truck stop establishment, licensed

14 fraternal establishment, or licensed veterans

15 establishment when conducted in accordance with the Video

16 Gaming Act.

17 (13) Games of skill or chance where money or other

18 things of value can be won but no payment or purchase is

19 required to participate.

20 (14) Savings promotion raffles authorized under

21 Section 5g of the Illinois Banking Act, Section 7008 of the

22 Savings Bank Act, Section 42.7 of the Illinois Credit Union

23 Act, Section 5136B of the National Bank Act (12 U.S.C.

24 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.

25 1463).

26 (c) Sentence.

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1 Gambling is a Class A misdemeanor. A second or subsequent

2 conviction under subsections (a)(3) through (a)(12), is a Class

3 4 felony.

4 (d) Circumstantial evidence.

5 In prosecutions under this Section circumstantial evidence

6 shall have the same validity and weight as in any criminal

7 prosecution.

8 (Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

9 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)

10 Sec. 28-1.1. Syndicated gambling.

11 (a) Declaration of Purpose. Recognizing the close

12 relationship between professional gambling and other organized

13 crime, it is declared to be the policy of the legislature to

14 restrain persons from engaging in the business of gambling for

15 profit in this State. This Section shall be liberally construed

16 and administered with a view to carrying out this policy.

17 (b) A person commits syndicated gambling when he or she

18 operates a "policy game" or engages in the business of

19 bookmaking.

20 (c) A person "operates a policy game" when he or she

21 knowingly uses any premises or property for the purpose of

22 receiving or knowingly does receive from what is commonly

23 called "policy":

24 (1) money from a person other than the bettor or player

25 whose bets or plays are represented by the money; or

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1 (2) written "policy game" records, made or used over

2 any period of time, from a person other than the bettor or

3 player whose bets or plays are represented by the written

4 record.

5 (d) A person engages in bookmaking when he or she knowingly

6 receives or accepts more than five bets or wagers upon the

7 result of any trials or contests of skill, speed or power of

8 endurance or upon any lot, chance, casualty, unknown or

9 contingent event whatsoever, which bets or wagers shall be of

10 such size that the total of the amounts of money paid or

11 promised to be paid to the bookmaker on account thereof shall

12 exceed $2,000. Bookmaking is the receiving or accepting of bets

13 or wagers regardless of the form or manner in which the

14 bookmaker records them.

15 (e) Participants in any of the following activities shall

16 not be convicted of syndicated gambling:

17 (1) Agreements to compensate for loss caused by the

18 happening of chance including without limitation contracts

19 of indemnity or guaranty and life or health or accident

20 insurance;

21 (2) Offers of prizes, award or compensation to the

22 actual contestants in any bona fide contest for the

23 determination of skill, speed, strength or endurance or to

24 the owners of animals or vehicles entered in the contest;

25 (3) Pari-mutuel betting as authorized by law of this

26 State;

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1 (4) Manufacture of gambling devices, including the

2 acquisition of essential parts therefor and the assembly

3 thereof, for transportation in interstate or foreign

4 commerce to any place outside this State when the

5 transportation is not prohibited by any applicable Federal

6 law;

7 (5) Raffles and poker runs when conducted in accordance

8 with the Raffles and Poker Runs Act;

9 (6) Gambling games conducted on riverboats, in

10 casinos, or at electronic gaming facilitieswhen

11 authorized by the Illinois ~~Riverboat~~ Gambling Act;

12 (7) Video gaming terminal games at a licensed

13 establishment, licensed truck stop establishment, licensed

14 fraternal establishment, or licensed veterans

15 establishment when conducted in accordance with the Video

16 Gaming Act; and

17 (8) Savings promotion raffles authorized under Section

18 5g of the Illinois Banking Act, Section 7008 of the Savings

19 Bank Act, Section 42.7 of the Illinois Credit Union Act,

20 Section 5136B of the National Bank Act (12 U.S.C. 25a), or

21 Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).

22 (f) Sentence. Syndicated gambling is a Class 3 felony.

23 (Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

24 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)

25 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is

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1 any real estate, vehicle, boat or any other property whatsoever

2 used for the purposes of gambling other than gambling conducted

3 in the manner authorized by theIllinois ~~Riverboat~~ Gambling Act

4 or the Video Gaming Act. Any person who knowingly permits any

5 premises or property owned or occupied by him or under his

6 control to be used as a gambling place commits a Class A

7 misdemeanor. Each subsequent offense is a Class 4 felony. When

8 any premises is determined by the circuit court to be a

9 gambling place:

10 (a) Such premises is a public nuisance and may be proceeded

11 against as such, and

12 (b) All licenses, permits or certificates issued by the

13 State of Illinois or any subdivision or public agency thereof

14 authorizing the serving of food or liquor on such premises

15 shall be void; and no license, permit or certificate so

16 cancelled shall be reissued for such premises for a period of

17 60 days thereafter; nor shall any person convicted of keeping a

18 gambling place be reissued such license for one year from his

19 conviction and, after a second conviction of keeping a gambling

20 place, any such person shall not be reissued such license, and

21 (c) Such premises of any person who knowingly permits

22 thereon a violation of any Section of this Article shall be

23 held liable for, and may be sold to pay any unsatisfied

24 judgment that may be recovered and any unsatisfied fine that

25 may be levied under any Section of this Article.

26 (Source: P.A. 96-34, eff. 7-13-09.)

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1 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)

2 Sec. 28-5. Seizure of gambling devices and gambling funds.

3 (a) Every device designed for gambling which is incapable

4 of lawful use or every device used unlawfully for gambling

5 shall be considered a "gambling device", and shall be subject

6 to seizure, confiscation and destruction by the Department of

7 State Police or by any municipal, or other local authority,

8 within whose jurisdiction the same may be found. As used in

9 this Section, a "gambling device" includes any slot machine,

10 and includes any machine or device constructed for the

11 reception of money or other thing of value and so constructed

12 as to return, or to cause someone to return, on chance to the

13 player thereof money, property or a right to receive money or

14 property. With the exception of any device designed for

15 gambling which is incapable of lawful use, no gambling device

16 shall be forfeited or destroyed unless an individual with a

17 property interest in said device knows of the unlawful use of

18 the device.

19 (b) Every gambling device shall be seized and forfeited to

20 the county wherein such seizure occurs. Any money or other

21 thing of value integrally related to acts of gambling shall be

22 seized and forfeited to the county wherein such seizure occurs.

23 (c) If, within 60 days after any seizure pursuant to

24 subparagraph (b) of this Section, a person having any property

25 interest in the seized property is charged with an offense, the

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1 court which renders judgment upon such charge shall, within 30

2 days after such judgment, conduct a forfeiture hearing to

3 determine whether such property was a gambling device at the

4 time of seizure. Such hearing shall be commenced by a written

5 petition by the State, including material allegations of fact,

6 the name and address of every person determined by the State to

7 have any property interest in the seized property, a

8 representation that written notice of the date, time and place

9 of such hearing has been mailed to every such person by

10 certified mail at least 10 days before such date, and a request

11 for forfeiture. Every such person may appear as a party and

12 present evidence at such hearing. The quantum of proof required

13 shall be a preponderance of the evidence, and the burden of

14 proof shall be on the State. If the court determines that the

15 seized property was a gambling device at the time of seizure,

16 an order of forfeiture and disposition of the seized property

17 shall be entered: a gambling device shall be received by the

18 State's Attorney, who shall effect its destruction, except that

19 valuable parts thereof may be liquidated and the resultant

20 money shall be deposited in the general fund of the county

21 wherein such seizure occurred; money and other things of value

22 shall be received by the State's Attorney and, upon

23 liquidation, shall be deposited in the general fund of the

24 county wherein such seizure occurred. However, in the event

25 that a defendant raises the defense that the seized slot

26 machine is an antique slot machine described in subparagraph

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1 (b) (7) of Section 28-1 of this Code and therefore he is exempt

2 from the charge of a gambling activity participant, the seized

3 antique slot machine shall not be destroyed or otherwise

4 altered until a final determination is made by the Court as to

5 whether it is such an antique slot machine. Upon a final

6 determination by the Court of this question in favor of the

7 defendant, such slot machine shall be immediately returned to

8 the defendant. Such order of forfeiture and disposition shall,

9 for the purposes of appeal, be a final order and judgment in a

10 civil proceeding.

11 (d) If a seizure pursuant to subparagraph (b) of this

12 Section is not followed by a charge pursuant to subparagraph

13 (c) of this Section, or if the prosecution of such charge is

14 permanently terminated or indefinitely discontinued without

15 any judgment of conviction or acquittal (1) the State's

16 Attorney shall commence an in rem proceeding for the forfeiture

17 and destruction of a gambling device, or for the forfeiture and

18 deposit in the general fund of the county of any seized money

19 or other things of value, or both, in the circuit court and (2)

20 any person having any property interest in such seized gambling

21 device, money or other thing of value may commence separate

22 civil proceedings in the manner provided by law.

23 (e) Any gambling device displayed for sale to a riverboat

24 gambling operation, casino gambling operation, or electronic

25 gaming facility or used to train occupational licensees of a

26 riverboat gambling operation, casino gambling operation, or

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1 electronic gaming facility as authorized under the Illinois

2 ~~Riverboat~~Gambling Act is exempt from seizure under this

3 Section.

4 (f) Any gambling equipment, devices and supplies provided

5 by a licensed supplier in accordance with theIllinois

6 ~~Riverboat~~Gambling Act which are removed froma ~~the~~ riverboat,

7 casino, or electronic gaming facility for repair are exempt

8 from seizure under this Section.

9 (g) The following video gaming terminals are exempt from

10 seizure under this Section:

11 (1) Video gaming terminals for sale to a licensed

12 distributor or operator under the Video Gaming Act.

13 (2) Video gaming terminals used to train licensed

14 technicians or licensed terminal handlers.

15 (3) Video gaming terminals that are removed from a

16 licensed establishment, licensed truck stop establishment,

17 licensed fraternal establishment, or licensed veterans

18 establishment for repair.

19 (Source: P.A. 98-31, eff. 6-24-13.)

20 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)

21 Sec. 28-7. Gambling contracts void.

22 (a) All promises, notes, bills, bonds, covenants,

23 contracts, agreements, judgments, mortgages, or other

24 securities or conveyances made, given, granted, drawn, or

25 entered into, or executed by any person whatsoever, where the

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1 whole or any part of the consideration thereof is for any money

2 or thing of value, won or obtained in violation of any Section

3 of this Article are null and void.

4 (b) Any obligation void under this Section may be set aside

5 and vacated by any court of competent jurisdiction, upon a

6 complaint filed for that purpose, by the person so granting,

7 giving, entering into, or executing the same, or by his

8 executors or administrators, or by any creditor, heir, legatee,

9 purchaser or other person interested therein; or if a judgment,

10 the same may be set aside on motion of any person stated above,

11 on due notice thereof given.

12 (c) No assignment of any obligation void under this Section

13 may in any manner affect the defense of the person giving,

14 granting, drawing, entering into or executing such obligation,

15 or the remedies of any person interested therein.

16 (d) This Section shall not prevent a licensed owner of a

17 riverboat gambling operation, casino gambling operation, or an

18 electronic gaming licensee under the Illinois Gambling Act and

19 the Illinois Horse Racing Act of 1975 from instituting a cause

20 of action to collect any amount due and owing under an

21 extension of credit to a~~riverboat~~ gambling patron as

22 authorized under Section 11.1 of the Illinois~~Riverboat~~

23 Gambling Act.

24 (Source: P.A. 87-826.)

25 Section 90-55. The Eminent Domain Act is amended by adding

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1 Section 15-5-48 as follows:

2 (735 ILCS 30/15-5-48 new)

3 Sec. 15-5-48. Eminent domain powers in new Acts. The

4 following provisions of law may include express grants of the

5 power to acquire property by condemnation or eminent domain:

6 Chicago Casino Development Authority Act; City of Chicago; for

7 the purposes of the Act.

8 Section 90-60. The Payday Loan Reform Act is amended by

9 changing Section 3-5 as follows:

10 (815 ILCS 122/3-5)

11 Sec. 3-5. Licensure.

12 (a) A license to make a payday loan shall state the

13 address, including city and state, at which the business is to

14 be conducted and shall state fully the name of the licensee.

15 The license shall be conspicuously posted in the place of

16 business of the licensee and shall not be transferable or

17 assignable.

18 (b) An application for a license shall be in writing and in

19 a form prescribed by the Secretary. The Secretary may not issue

20 a payday loan license unless and until the following findings

21 are made:

22 (1) that the financial responsibility, experience,

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1 character, and general fitness of the applicant are such as

2 to command the confidence of the public and to warrant the

3 belief that the business will be operated lawfully and

4 fairly and within the provisions and purposes of this Act;

5 and

6 (2) that the applicant has submitted such other

7 information as the Secretary may deem necessary.

8 (c) A license shall be issued for no longer than one year,

9 and no renewal of a license may be provided if a licensee has

10 substantially violated this Act and has not cured the violation

11 to the satisfaction of the Department.

12 (d) A licensee shall appoint, in writing, the Secretary as

13 attorney-in-fact upon whom all lawful process against the

14 licensee may be served with the same legal force and validity

15 as if served on the licensee. A copy of the written

16 appointment, duly certified, shall be filed in the office of

17 the Secretary, and a copy thereof certified by the Secretary

18 shall be sufficient evidence to subject a licensee to

19 jurisdiction in a court of law. This appointment shall remain

20 in effect while any liability remains outstanding in this State

21 against the licensee. When summons is served upon the Secretary

22 as attorney-in-fact for a licensee, the Secretary shall

23 immediately notify the licensee by registered mail, enclosing

24 the summons and specifying the hour and day of service.

25 (e) A licensee must pay an annual fee of $1,000. In

26 addition to the license fee, the reasonable expense of any

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1 examination or hearing by the Secretary under any provisions of

2 this Act shall be borne by the licensee. If a licensee fails to

3 renew its license by December 31, its license shall

4 automatically expire; however, the Secretary, in his or her

5 discretion, may reinstate an expired license upon:

6 (1) payment of the annual fee within 30 days of the

7 date of expiration; and

8 (2) proof of good cause for failure to renew.

9 (f) Not more than one place of business shall be maintained

10 under the same license, but the Secretary may issue more than

11 one license to the same licensee upon compliance with all the

12 provisions of this Act governing issuance of a single license.

13 The location, except those locations already in existence as of

14 June 1, 2005, may not be within one mile of a horse race track

15 subject to the Illinois Horse Racing Act of 1975, within one

16 mile of a facility at which gambling is conducted under the

17 Illinois~~Riverboat~~ Gambling Act, within one mile of the

18 location at which a riverboat subject to theIllinois ~~Riverboat~~

19 Gambling Act docks, or within one mile of any State of Illinois

20 or United States military base or naval installation.

21 (g) No licensee shall conduct the business of making loans

22 under this Act within any office, suite, room, or place of

23 business in which (1) any loans are offered or made under the

24 Consumer Installment Loan Act other than title secured loans as

25 defined in subsection (a) of Section 15 of the Consumer

26 Installment Loan Act and governed by Title 38, Section 110.330

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1 of the Illinois Administrative Code or (2) any other business

2 is solicited or engaged in unless the other business is

3 licensed by the Department or, in the opinion of the Secretary,

4 the other business would not be contrary to the best interests

5 of consumers and is authorized by the Secretary in writing.

6 (g-5) Notwithstanding subsection (g) of this Section, a

7 licensee may obtain a license under the Consumer Installment

8 Loan Act (CILA) for the exclusive purpose and use of making

9 title secured loans, as defined in subsection (a) of Section 15

10 of CILA and governed by Title 38, Section 110.300 of the

11 Illinois Administrative Code. A licensee may continue to

12 service Consumer Installment Loan Act loans that were

13 outstanding as of the effective date of this amendatory Act of

14 the 96th General Assembly.

15 (h) The Secretary shall maintain a list of licensees that

16 shall be available to interested consumers and lenders and the

17 public. The Secretary shall maintain a toll-free number whereby

18 consumers may obtain information about licensees. The

19 Secretary shall also establish a complaint process under which

20 an aggrieved consumer may file a complaint against a licensee

21 or non-licensee who violates any provision of this Act.

22 (Source: P.A. 96-936, eff. 3-21-11.)

23 Section 90-65. The Travel Promotion Consumer Protection

24 Act is amended by changing Section 2 as follows:

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1 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)

2 Sec. 2. Definitions.

3 (a) "Travel promoter" means a person, including a tour

4 operator, who sells, provides, furnishes, contracts for,

5 arranges or advertises that he or she will arrange wholesale or

6 retail transportation by air, land, sea or navigable stream,

7 either separately or in conjunction with other services.

8 "Travel promoter" does not include (1) an air carrier; (2) a

9 sea carrier; (3) an officially appointed agent of an air

10 carrier who is a member in good standing of the Airline

11 Reporting Corporation; (4) a travel promoter who has in force

12 $1,000,000 or more of liability insurance coverage for

13 professional errors and omissions and a surety bond or

14 equivalent surety in the amount of $100,000 or more for the

15 benefit of consumers in the event of a bankruptcy on the part

16 of the travel promoter; or (5) a riverboat subject to

17 regulation under theIllinois ~~Riverboat~~ Gambling Act.

18 (b) "Advertise" means to make any representation in the

19 solicitation of passengers and includes communication with

20 other members of the same partnership, corporation, joint

21 venture, association, organization, group or other entity.

22 (c) "Passenger" means a person on whose behalf money or

23 other consideration has been given or is to be given to

24 another, including another member of the same partnership,

25 corporation, joint venture, association, organization, group

26 or other entity, for travel.

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1 (d) "Ticket or voucher" means a writing or combination of

2 writings which is itself good and sufficient to obtain

3 transportation and other services for which the passenger has

4 contracted.

5 (Source: P.A. 91-357, eff. 7-29-99.)

6 (30 ILCS 105/5.490 rep.)

7 Section 90-70. The State Finance Act is amended by

8 repealing Section 5.490.

9 (230 ILCS 5/54 rep.)

10 Section 90-75. The Illinois Horse Racing Act of 1975 is

11 amended by repealing Section 54.

12 ARTICLE 99.

13 Section 99-97. Severability. The provisions of this Act are

14 severable under Section 1.31 of the Statute on Statutes.

15 Section 99-99. Effective date. This Act takes effect upon

16 becoming law.

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1 INDEX

2 Statutes amended in order of appearance

3 New Act

4 5 ILCS 430/5-45

5 5 ILCS 430/20-10

6 20 ILCS 301/5-20

7 20 ILCS 605/605-530 new

8 20 ILCS 605/605-535 new

9 20 ILCS 1605/9.1

10 20 ILCS 2505/2505-305 was 20 ILCS 2505/39b15.1

11 30 ILCS 5/3-1 from Ch. 15, par. 303-1

12 30 ILCS 105/5.878 new

13 30 ILCS 105/5.879 new

14 30 ILCS 105/5.880 new

15 30 ILCS 105/5.881 new

16 30 ILCS 105/6z-45

17 30 ILCS 105/6z-102 new

18 30 ILCS 105/6z-103 new

19 35 ILCS 5/201 from Ch. 120, par. 2-201

20 35 ILCS 5/303 from Ch. 120, par. 3-303

21 35 ILCS 5/304 from Ch. 120, par. 3-304

22 35 ILCS 5/710 from Ch. 120, par. 7-710

23 35 ILCS 200/15-144 new

24 65 ILCS 5/8-10-2.6 new

25 70 ILCS 1825/5.1 from Ch. 19, par. 255.1

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1 205 ILCS 670/12.5

2 230 ILCS 5/1.2

3 230 ILCS 5/3.11 from Ch. 8, par. 37-3.11

4 230 ILCS 5/3.12 from Ch. 8, par. 37-3.12

5 230 ILCS 5/3.31 new

6 230 ILCS 5/3.32 new

7 230 ILCS 5/3.33 new

8 230 ILCS 5/3.35 new

9 230 ILCS 5/3.36 new

10 230 ILCS 5/6 from Ch. 8, par. 37-6

11 230 ILCS 5/9 from Ch. 8, par. 37-9

12 230 ILCS 5/15 from Ch. 8, par. 37-15

13 230 ILCS 5/18 from Ch. 8, par. 37-18

14 230 ILCS 5/19 from Ch. 8, par. 37-19

15 230 ILCS 5/20 from Ch. 8, par. 37-20

16 230 ILCS 5/21 from Ch. 8, par. 37-21

17 230 ILCS 5/24 from Ch. 8, par. 37-24

18 230 ILCS 5/25 from Ch. 8, par. 37-25

19 230 ILCS 5/26 from Ch. 8, par. 37-26

20 230 ILCS 5/27 from Ch. 8, par. 37-27

21 230 ILCS 5/30 from Ch. 8, par. 37-30

22 230 ILCS 5/30.5

23 230 ILCS 5/31 from Ch. 8, par. 37-31

24 230 ILCS 5/31.1 from Ch. 8, par. 37-31.1

25 230 ILCS 5/32.1

26 230 ILCS 5/34.3 new

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1 230 ILCS 5/36 from Ch. 8, par. 37-36

2 230 ILCS 5/39.2 new

3 230 ILCS 5/40 from Ch. 8, par. 37-40

4 230 ILCS 5/54.75

5 230 ILCS 5/56 new

6 230 ILCS 10/1 from Ch. 120, par. 2401

7 230 ILCS 10/2 from Ch. 120, par. 2402

8 230 ILCS 10/3 from Ch. 120, par. 2403

9 230 ILCS 10/4 from Ch. 120, par. 2404

10 230 ILCS 10/5 from Ch. 120, par. 2405

11 230 ILCS 10/5.1 from Ch. 120, par. 2405.1

12 230 ILCS 10/5.3 new

13 230 ILCS 10/6 from Ch. 120, par. 2406

14 230 ILCS 10/7 from Ch. 120, par. 2407

15 230 ILCS 10/7.3

16 230 ILCS 10/7.5

17 230 ILCS 10/7.7 new

18 230 ILCS 10/7.8 new

19 230 ILCS 10/7.9 new

20 230 ILCS 10/7.10 new

21 230 ILCS 10/7.11 new

22 230 ILCS 10/7.12 new

23 230 ILCS 10/7.13 new

24 230 ILCS 10/8 from Ch. 120, par. 2408

25 230 ILCS 10/9 from Ch. 120, par. 2409

26 230 ILCS 10/11 from Ch. 120, par. 2411

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1 230 ILCS 10/11.1 from Ch. 120, par. 2411.1

2 230 ILCS 10/12 from Ch. 120, par. 2412

3 230 ILCS 10/13 from Ch. 120, par. 2413

4 230 ILCS 10/14 from Ch. 120, par. 2414

5 230 ILCS 10/15 from Ch. 120, par. 2415

6 230 ILCS 10/16 from Ch. 120, par. 2416

7 230 ILCS 10/17 from Ch. 120, par. 2417

8 230 ILCS 10/17.1 from Ch. 120, par. 2417.1

9 230 ILCS 10/18 from Ch. 120, par. 2418

10 230 ILCS 10/18.1

11 230 ILCS 10/18.2 new

12 230 ILCS 10/19 from Ch. 120, par. 2419

13 230 ILCS 10/20 from Ch. 120, par. 2420

14 230 ILCS 10/21 from Ch. 120, par. 2421

15 230 ILCS 10/23 from Ch. 120, par. 2423

16 230 ILCS 10/24

17 230 ILCS 40/5

18 230 ILCS 40/25

19 230 ILCS 40/45

20 230 ILCS 40/79

21 230 ILCS 40/80

22 230 ILCS 40/81 new

23 235 ILCS 5/5-1 from Ch. 43, par. 115

24 235 ILCS 5/6-30 from Ch. 43, par. 144f

25 305 ILCS 5/10-17.15

26 430 ILCS 66/65

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