Public Act 101-0031

SB0690 Enrolled LRB101 04451 HLH 49459 b

AN ACT concerning revenue.

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

represented in the General Assembly:

Article 5. Leveling the Playing Field for Illinois Retail Act

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

Leveling the Playing Field for Illinois Retail Act. References

in this Article to "this Act" means this Article.

Section 5-5. Findings. The General Assembly finds that

certified service providers and certified automated systems

simplify use and occupation tax compliance for out-of-state

sellers, which fosters higher levels of accurate tax collection

and remittance and generates administrative savings and new

marginal tax revenue for both State and local taxing

jurisdictions. By making the services of certified service

providers and certified automated systems available to remote

retailers without charge as provided in this Act, the State

will substantially eliminate the burden on those remote

retailers to collect and remit both State and local taxing

jurisdiction use and occupation taxes. While providing a means

for remote retailers to collect and remit tax on an even basis

with Illinois retailers, this Act also protects existing local

tax revenue streams by retaining origin sourcing for all

transactions by retailers maintaining a physical presence in

Illinois.

Section 5-10. Definitions. As used in this Act:

"Certified service provider" means an agent certified by

the Department to perform the remote retailer's use and

occupation tax functions, as outlined in the contract between

the State and the certified service provider.

"Certified automated system" means an automated software

system that is certified by the State as meeting all

performance and tax calculation standards required by

Department rules.

"Department" means the Department of Revenue.

"Remote retailer" means a retailer as defined in Section 1

of the Retailers' Occupation Tax Act that has an obligation to

collect State and local retailers' occupation tax under

subsection (b) of Section 2 of the Retailers' Occupation Tax

Act.

"Retailers' occupation tax" means the tax levied under the

Retailers' Occupation Tax Act and all applicable local

retailers' occupation taxes collected by the Department in

conjunction with the State retailers' occupation tax.

Section 5-15. Certification of certified service

providers. The Department shall, no later than December 31,

2019, establish standards for the certification of certified

service providers and certified automated systems and may act

jointly with other states to accomplish these ends.

The Department may take other actions reasonably required

to implement the provisions of this Act, including the adoption

of rules and emergency rules and the procurement of goods and

services, which also may be coordinated jointly with other

states.

Section 5-20. Provision of databases. The Department

shall, no later than July 1, 2020:

(1) provide and maintain an electronic, downloadable

database of defined product categories that identifies the

taxability of each category;

(2) provide and maintain an electronic, downloadable

database of all retailers' occupation tax rates for the

jurisdictions in this State that levy a retailers'

occupation tax; and

(3) provide and maintain an electronic, downloadable

database that assigns delivery addresses in this State to

the applicable taxing jurisdictions.

Section 5-25. Certification. The Department shall, no

later than July 1, 2020:

(1) provide uniform minimum standards that companies

wishing to be designated as a certified service provider in

this State must meet; those minimum standards must include

an expedited certification process for companies that have

been certified in at least 5 other states;

(2) provide uniform minimum standards that certified

automated systems must meet; those minimum standards may

include an expedited certification process for automated

systems that have been certified in at least 5 other

states;

(3) establish a certification process to review the

systems of companies wishing to be designated as a

certified service provider in this State or of companies

wishing to use a certified automated process; this

certification process shall provide that companies that

meet all required standards and whose systems have been

tested and approved by the Department for properly

determining the taxability of items to be sold, the correct

tax rate to apply to a transaction, and the appropriate

jurisdictions to which the tax shall be remitted, shall be

certified;

(4) enter into a contractual relationship with each

company that qualifies as a certified service provider or

that will be using a certified automated system; those

contracts shall, at a minimum, provide:

(A) the responsibilities of the certified service

provider and the remote retailers that contract with

the certified service provider or the user of a

certified automated system related to liability for

proper collection and remittance of use and occupation

taxes;

(B) the responsibilities of the certified service

provider and the remote retailers that contract with

the certified service provider or the user of a

certified service provider related to record keeping

and auditing;

(C) for the protection and confidentiality of tax

information; and

(D) compensation equal to 1.75% of the tax dollars

collected and remitted to the State by a certified

service provider on a timely basis on behalf of remote

retailers; remote retailers using a certified service

provider may not claim the vendor's discount allowed

under the Retailers' Occupation Tax Act or the Service

Occupation Tax Act.

The provisions of this Section shall supersede the

provisions of the Illinois Procurement Code.

Section 5-30. Relief from liability. Beginning January 1,

2020, remote retailers using certified service providers or

certified automated systems and their certified service

providers or certified automated systems providers are

relieved from liability to the State for having charged and

collected the incorrect amount of use or occupation tax

resulting from a certified service provider or certified

automated system relying, at the time of the sale, on: (1)

erroneous data provided by the State in database files on tax

rates, boundaries, or taxing jurisdictions; or (2) erroneous

data provided by the State concerning the taxability of

products and services.

The Department shall, to the best of its ability, assign

addresses to the proper local taxing jurisdiction using a

9-digit zip code identifier. On an annual basis, the Department

shall make available to local taxing jurisdictions the taxing

jurisdiction boundaries determined by the Department for their

verification. If a jurisdiction fails to verify their taxing

jurisdiction boundaries to the Department in any given year,

the Department shall assign retailers' occupation tax revenue

from remote retail sales based on its best information. In that

case, tax revenues from remote retail sales remitted to a

taxing jurisdiction based on erroneous local tax boundary

information will be assigned to the correct taxing jurisdiction

on a prospective basis upon notice of the boundary error from a

local taxing jurisdiction. No certified service provider or

remote retailer using a certified automated system shall be

subject to a class action brought on behalf of customers and

arising from, or in any way related to, an overpayment of

retailers' occupation tax collected by the certified service

provider if, at the time of the sale, they relied on

information provided by the Department, regardless of whether

that claim is characterized as a tax refund claim. Nothing in

this Section affects a customer's right to seek a refund from

the remote retailer as provided in this Act.

Section 5-97. Severability. The provisions of this Act are

severable under Section 1.31 of the Statute on Statutes.

Article 10. Parking Excise Tax Act

Section 10-1. Short title. This Article may be cited as the

Parking Excise Tax Act. References in this Article to "this

Act" mean this Article.

Section 10-5. Definitions.

"Booking intermediary" means any person or entity that

facilitates the processing and fulfillment of reservation

transactions between an operator and a person or entity

desiring parking in a parking lot or garage of that operator.

"Charge or fee paid for parking" means the gross amount of

consideration for the use or privilege of parking a motor

vehicle in or upon any parking lot or garage in the State,

collected by an operator and valued in money, whether received

in money or otherwise, including cash, credits, property, and

services, determined without any deduction for costs or

expenses, but not including charges that are added to the

charge or fee on account of the tax imposed by this Act or on

account of any other tax imposed on the charge or fee. "Charge

or fee paid for parking" excludes separately stated charges not

for the use or privilege or parking and excludes amounts

retained by or paid to a booking intermediary for services

provided by the booking intermediary. If any separately stated

charge is not optional, it shall be presumed that it is part of

the charge for the use or privilege or parking.

"Department" means the Department of Revenue.

"Operator" means any person who engages in the business of

operating a parking area or garage, or who, directly or through

an agreement or arrangement with another party, collects the

consideration for parking or storage of motor vehicles,

recreational vehicles, or other self-propelled vehicles, at

that parking place. This includes, but is not limited to, any

facilitator or aggregator that collects from the purchaser the

charge or fee paid for parking. "Operator" does not include a

bank, credit card company, payment processor, booking

intermediary, or person whose involvement is limited to

performing functions that are similar to those performed by a

bank, credit card company, payment processor, or booking

intermediary.

"Parking area or garage" means any real estate, building,

structure, premises, enclosure or other place, whether

enclosed or not, except a public way, within the State, where

motor vehicles, recreational vehicles, or other self-propelled

vehicles, are stored, housed or parked for hire, charge, fee or

other valuable consideration in a condition ready for use, or

where rent or compensation is paid to the owner, manager,

operator or lessee of the premises for the housing, storing,

sheltering, keeping or maintaining motor vehicles,

recreational vehicles, or other self-propelled vehicles.

"Parking area or garage" includes any parking area or garage,

whether the vehicle is parked by the owner of the vehicle or by

the operator or an attendant.

"Person" means any natural individual, firm, trust,

estate, partnership, association, joint stock company, joint

venture, corporation, limited liability company, or a

receiver, trustee, guardian, or other representative appointed

by order of any court.

"Purchase price" means the consideration paid for the

purchase of a parking space in a parking area or garage, valued

in money, whether received in money or otherwise, including

cash, gift cards, credits, and property, and shall be

determined without any deduction on account of the cost of

materials used, labor or service costs, or any other expense

whatsoever.

"Purchase price" includes any and all charges that the

recipient pays related to or incidental to obtaining the use or

privilege of using a parking space in a parking area or garage,

including but not limited to any and all related markups,

service fees, convenience fees, facilitation fees,

cancellation fees, overtime fees, or other such charges,

regardless of terminology. However, "purchase price" shall not

include consideration paid for:

(1) optional, separately stated charges not for the use

or privilege of using a parking space in the parking area

or garage;

(2) any charge for a dishonored check;

(3) any finance or credit charge, penalty or charge for

delayed payment, or discount for prompt payment;

(4) any purchase by a purchaser if the operator is

prohibited by federal or State Constitution, treaty,

convention, statute or court decision from collecting the

tax from such purchaser;

(5) the isolated or occasional sale of parking spaces

subject to tax under this Act by a person who does not hold

himself out as being engaged (or who does not habitually

engage) in selling of parking spaces; and

(6) any amounts added to a purchaser's bills because of

charges made pursuant to the tax imposed by this Act. If

credit is extended, then the amount thereof shall be

included only as and when payments are made.

"Purchaser" means any person who acquires a parking space

in a parking area or garage for use for valuable consideration.

"Use" means the exercise by any person of any right or

power over, or the enjoyment of, a parking space in a parking

area or garage subject to tax under this Act.

Section 10-10. Imposition of tax; calculation of tax.

(a) Beginning on January 1, 2020, a tax is imposed on the

privilege of using in this State a parking space in a parking

area or garage for the use of parking one or more motor

vehicles, recreational vehicles, or other self-propelled

vehicles, at the rate of:

(1) 6% of the purchase price for a parking space paid

for on an hourly, daily, or weekly basis; and

(2) 9% of the purchase price for a parking space paid

for on a monthly or annual basis.

(b) The tax shall be collected from the purchaser by the

operator.

(c) An operator that has paid or remitted the tax imposed

by this Act to another operator in connection with the same

parking transaction, or the use of the same parking space, that

is subject to tax under this Act, shall be entitled to a credit

for such tax paid or remitted against the amount of tax owed

under this Act, provided that the other operator is registered

under this Act. The operator claiming the credit shall have the

burden of proving it is entitled to claim a credit.

(d) If any operator erroneously collects tax or collects

more from the purchaser than the purchaser's liability for the

transaction, the purchaser shall have a legal right to claim a

refund of such amount from the operator. However, if such

amount is not refunded to the purchaser for any reason, the

operator is liable to pay such amount to the Department.

(e) The tax imposed by this Section is not imposed with

respect to any transaction in interstate commerce, to the

extent that the transaction may not, under the Constitution and

statutes of the United States, be made the subject of taxation

by this State.

Section 10-15. Filing of returns and deposit of proceeds.

On or before the last day of each calendar month, every

operator engaged in the business of providing to purchasers

parking areas and garages in this State during the preceding

calendar month shall file a return with the Department,

stating:

(1) the name of the operator;

(2) the address of its principal place of business and

the address of the principal place of business from which

it provides parking areas and garages in this State;

(3) the total amount of receipts received by the

operator during the preceding calendar month or quarter, as

the case may be, from sales of parking spaces to purchasers

in parking areas or garages during the preceding calendar

month or quarter;

(4) deductions allowed by law;

(5) the total amount of receipts received by the

operator during the preceding calendar month or quarter

upon which the tax was computed;

(6) the amount of tax due; and

(7) such other reasonable information as the

Department may require.

If an operator ceases to engage in the kind of business

that makes it responsible for filing returns under this Act,

then that operator shall file a final return under this Act

with the Department on or before the last day of the month

after discontinuing such business.

All returns required to be filed and payments required to

be made under this Act shall be by electronic means. Taxpayers

who demonstrate hardship in filing or paying electronically may

petition the Department to waive the electronic filing or

payment requirement, or both. The Department may require a

separate return for the tax under this Act or combine the

return for the tax under this Act with the return for other

taxes.

If the same person has more than one business registered

with the Department under separate registrations under this

Act, that person shall not file each return that is due as a

single return covering all such registered businesses but shall

file separate returns for each such registered business.

If the operator is a corporation, the return filed on

behalf of that corporation shall be signed by the president,

vice-president, secretary, or treasurer, or by a properly

accredited agent of such corporation.

The operator filing the return under this Act shall, at the

time of filing the return, pay to the Department the amount of

tax imposed by this Act less a discount of 1.75%, not to exceed

$1,000 per month, which is allowed to reimburse the operator

for the expenses incurred in keeping records, preparing and

filing returns, remitting the tax, and supplying data to the

Department on request.

If any payment provided for in this Section exceeds the

taxpayer's liabilities under this Act, as shown on an original

return, the Department may authorize the taxpayer to credit

such excess payment against liability subsequently to be

remitted to the Department under this Act, in accordance with

reasonable rules adopted by the Department. If the Department

subsequently determines that all or any part of the credit

taken was not actually due to the taxpayer, the taxpayer's

discount shall be reduced by an amount equal to the difference

between the discount as applied to the credit taken and that

actually due, and that taxpayer shall be liable for penalties

and interest on such difference.

Section 10-20. Exemptions. The tax imposed by this Act

shall not apply to:

(1) parking in a parking area or garage operated by the

federal government or its instrumentalities that has been

issued an active tax exemption number by the Department

under Section 1g of the Retailers' Occupation Tax Act; for

this exemption to apply, the parking area or garage must be

operated by the federal government or its

instrumentalities; the exemption under this paragraph (1)

does not apply if the parking area or garage is operated by

a third party, whether under a lease or other contractual

arrangement, or any other manner whatsoever;

(2) residential off-street parking for home or

apartment tenants or condominium occupants, if the

arrangement for such parking is provided in the home or

apartment lease or in a separate writing between the

landlord and tenant, or in a condominium agreement between

the condominium association and the owner, occupant, or

guest of a unit, whether the parking charge is payable to

the landlord, condominium association, or to the operator

of the parking spaces;

(3) parking by hospital employees in a parking space

that is owned and operated by the hospital for which they

work; and

(4) parking in a parking area or garage where 3 or

fewer motor vehicles are stored, housed, or parked for

hire, charge, fee or other valuable consideration, if the

operator of the parking area or garage does not act as the

operator of more than a total of 3 parking spaces located

in the State; if any operator of parking areas or garages,

including any facilitator or aggregator, acts as an

operator of more than 3 parking spaces in total that are

located in the State, then this exemption shall not apply

to any of those spaces.

Section 10-25. Collection of tax.

(a) Beginning with bills issued or charges collected for a

purchase of a parking space in a parking area or garage on and

after January 1, 2020, the tax imposed by this Act shall be

collected from the purchaser by the operator at the rate stated

in Section 10-10 and shall be remitted to the Department as

provided in this Act. All charges for parking spaces in a

parking area or garage are presumed subject to tax collection.

Operators shall collect the tax from purchasers by adding the

tax to the amount of the purchase price received from the

purchaser. The tax imposed by the Act shall when collected be

stated as a distinct item separate and apart from the purchase

price of the service subject to tax under this Act. However,

where it is not possible to state the tax separately the

Department may by rule exempt such purchases from this

requirement so long as purchasers are notified by language on

the invoice or notified by a sign that the tax is included in

the purchase price.

(b) Any person purchasing a parking space in a parking area

or garage subject to tax under this Act as to which there has

been no charge made to him of the tax imposed by Section 10-10,

shall make payment of the tax imposed by Section 10-10 of this

Act in the form and manner provided by the Department, such

payment to be made to the Department in the manner and form

required by the Department not later than the 20th day of the

month following the month of purchase of the parking space.

Section 10-30. Registration of operators.

(a) A person who engages in business as an operator of a

parking area or garage in this State shall register with the

Department. Application for a certificate of registration

shall be made to the Department, by electronic means, in the

form and manner prescribed by the Department and shall contain

any reasonable information the Department may require. Upon

receipt of the application for a certificate of registration in

proper form and manner, the Department shall issue to the

applicant a certificate of registration. Operators who

demonstrate that they do not have access to the Internet or

demonstrate hardship in applying electronically may petition

the Department to waive the electronic application

requirements.

(b) The Department may refuse to issue or reissue a

certificate of registration to any applicant for the reasons

set forth in Section 2505-380 of the Department of Revenue Law

of the Civil Administrative Code of Illinois.

(c) Any person aggrieved by any decision of the Department

under this Section may, within 20 days after notice of such

decision, protest and request a hearing, whereupon the

Department shall give notice to such person of the time and

place fixed for such hearing and shall hold a hearing in

conformity with the provisions of this Act and then issue its

final administrative decision in the matter to such person. In

the absence of such a protest within 20 days, the Department's

decision shall become final without any further determination

being made or notice given.

Section 10-35. Revocation of certificate of registration.

(a) The Department may, after notice and a hearing as

provided in this Act, revoke the certificate of registration of

any operator who violates any of the provisions of this Act or

any rule adopted pursuant to this Act. Before revocation of a

certificate of registration, the Department shall, within 90

days after non-compliance and at least 7 days prior to the date

of the hearing, give the operator so accused notice in writing

of the charge against him or her, and on the date designated

shall conduct a hearing upon this matter. The lapse of such

90-day period shall not preclude the Department from conducting

revocation proceedings at a later date if necessary. Any

hearing held under this Section shall be conducted by the

Director or by any officer or employee of the Department

designated in writing by the Director.

(b) The Department may revoke a certificate of registration

for the reasons set forth in Section 2505-380 of the Department

of Revenue Law of the Civil Administrative Code of Illinois.

(c) Upon the hearing of any such proceeding, the Director

or any officer or employee of the Department designated in

writing by the Director may administer oaths, and the

Department may procure by its subpoena the attendance of

witnesses and, by its subpoena duces tecum, the production of

relevant books and papers. Any circuit court, upon application

either of the operator or of the Department, may, by order duly

entered, require the attendance of witnesses and the production

of relevant books and papers before the Department in any

hearing relating to the revocation of certificates of

registration. Upon refusal or neglect to obey the order of the

court, the court may compel obedience thereof by proceedings

for contempt.

(d) The Department may, by application to any circuit

court, obtain an injunction requiring any person who engages in

business as an operator under this Act to obtain a certificate

of registration. Upon refusal or neglect to obey the order of

the court, the court may compel obedience by proceedings for

contempt.

Section 10-40. Valet services.

(a) Persons engaged in the business of providing valet

services are subject to the tax imposed by this Act on the

purchase price received in connection with their valet parking

operations.

(b) Persons engaged in the business of providing valet

services are entitled to take the credit in subsection (c) of

Section 10-10.

(c) Tips received by persons parking cars for persons

engaged in the business of providing valet services are not

subject to the tax imposed by this Act if the tips are retained

by the person receiving the tip. If the tips are turned over to

the valet business, the tips shall be included in the purchase

price.

Section 10-45. Tax collected as debt owed to State. The tax

herein required to be collected by any operator or valet

business and any such tax collected by that person, shall

constitute a debt owed by that person to this State.

Section 10-50. Incorporation by reference. All of the

provisions of Sections 1, 2a, 2b, 3 (except provisions relating

to transaction returns and except for provisions that are

inconsistent with this Act), in respect to all provisions

therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d,

5e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and

13 of the Retailers' Occupation Tax Act that are not

inconsistent with this Act, and all provisions of the Uniform

Penalty and Interest Act shall apply, as far as practicable, to

the subject matter of this Act to the same extent as if such

provisions were included in this Act.

Section 10-55. Deposit of proceeds from parking excise tax.

The moneys received by the Department from the tax imposed by

this Act shall be deposited into the Capital Projects Fund.

Article 15. Amendatory Provisions

Section 15-5. The Illinois Administrative Procedure Act is

amended by changing Section 5-45 as follows:

(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)

Sec. 5-45. Emergency rulemaking.

(a) "Emergency" means the existence of any situation that

any agency finds reasonably constitutes a threat to the public

interest, safety, or welfare.

(b) If any agency finds that an emergency exists that

requires adoption of a rule upon fewer days than is required by

Section 5-40 and states in writing its reasons for that

finding, the agency may adopt an emergency rule without prior

notice or hearing upon filing a notice of emergency rulemaking

with the Secretary of State under Section 5-70. The notice

shall include the text of the emergency rule and shall be

published in the Illinois Register. Consent orders or other

court orders adopting settlements negotiated by an agency may

be adopted under this Section. Subject to applicable

constitutional or statutory provisions, an emergency rule

becomes effective immediately upon filing under Section 5-65 or

at a stated date less than 10 days thereafter. The agency's

finding and a statement of the specific reasons for the finding

shall be filed with the rule. The agency shall take reasonable

and appropriate measures to make emergency rules known to the

persons who may be affected by them.

(c) An emergency rule may be effective for a period of not

longer than 150 days, but the agency's authority to adopt an

identical rule under Section 5-40 is not precluded. No

emergency rule may be adopted more than once in any 24-month

period, except that this limitation on the number of emergency

rules that may be adopted in a 24-month period does not apply

to (i) emergency rules that make additions to and deletions

from the Drug Manual under Section 5-5.16 of the Illinois

Public Aid Code or the generic drug formulary under Section

3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)

emergency rules adopted by the Pollution Control Board before

July 1, 1997 to implement portions of the Livestock Management

Facilities Act, (iii) emergency rules adopted by the Illinois

Department of Public Health under subsections (a) through (i)

of Section 2 of the Department of Public Health Act when

necessary to protect the public's health, (iv) emergency rules

adopted pursuant to subsection (n) of this Section, (v)

emergency rules adopted pursuant to subsection (o) of this

Section, or (vi) emergency rules adopted pursuant to subsection

(c-5) of this Section. Two or more emergency rules having

substantially the same purpose and effect shall be deemed to be

a single rule for purposes of this Section.

(c-5) To facilitate the maintenance of the program of group

health benefits provided to annuitants, survivors, and retired

employees under the State Employees Group Insurance Act of

1971, rules to alter the contributions to be paid by the State,

annuitants, survivors, retired employees, or any combination

of those entities, for that program of group health benefits,

shall be adopted as emergency rules. The adoption of those

rules shall be considered an emergency and necessary for the

public interest, safety, and welfare.

(d) In order to provide for the expeditious and timely

implementation of the State's fiscal year 1999 budget,

emergency rules to implement any provision of Public Act 90-587

or 90-588 or any other budget initiative for fiscal year 1999

may be adopted in accordance with this Section by the agency

charged with administering that provision or initiative,

except that the 24-month limitation on the adoption of

emergency rules and the provisions of Sections 5-115 and 5-125

do not apply to rules adopted under this subsection (d). The

adoption of emergency rules authorized by this subsection (d)

shall be deemed to be necessary for the public interest,

safety, and welfare.

(e) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2000 budget,

emergency rules to implement any provision of Public Act 91-24

or any other budget initiative for fiscal year 2000 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (e). The adoption of

emergency rules authorized by this subsection (e) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(f) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2001 budget,

emergency rules to implement any provision of Public Act 91-712

or any other budget initiative for fiscal year 2001 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (f). The adoption of

emergency rules authorized by this subsection (f) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(g) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2002 budget,

emergency rules to implement any provision of Public Act 92-10

or any other budget initiative for fiscal year 2002 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (g). The adoption of

emergency rules authorized by this subsection (g) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(h) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2003 budget,

emergency rules to implement any provision of Public Act 92-597

or any other budget initiative for fiscal year 2003 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (h). The adoption of

emergency rules authorized by this subsection (h) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(i) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2004 budget,

emergency rules to implement any provision of Public Act 93-20

or any other budget initiative for fiscal year 2004 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (i). The adoption of

emergency rules authorized by this subsection (i) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(j) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2005 budget as provided under the Fiscal Year 2005 Budget

Implementation (Human Services) Act, emergency rules to

implement any provision of the Fiscal Year 2005 Budget

Implementation (Human Services) Act may be adopted in

accordance with this Section by the agency charged with

administering that provision, except that the 24-month

limitation on the adoption of emergency rules and the

provisions of Sections 5-115 and 5-125 do not apply to rules

adopted under this subsection (j). The Department of Public Aid

may also adopt rules under this subsection (j) necessary to

administer the Illinois Public Aid Code and the Children's

Health Insurance Program Act. The adoption of emergency rules

authorized by this subsection (j) shall be deemed to be

necessary for the public interest, safety, and welfare.

(k) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2006 budget, emergency rules to implement any provision of

Public Act 94-48 or any other budget initiative for fiscal year

2006 may be adopted in accordance with this Section by the

agency charged with administering that provision or

initiative, except that the 24-month limitation on the adoption

of emergency rules and the provisions of Sections 5-115 and

5-125 do not apply to rules adopted under this subsection (k).

The Department of Healthcare and Family Services may also adopt

rules under this subsection (k) necessary to administer the

Illinois Public Aid Code, the Senior Citizens and Persons with

Disabilities Property Tax Relief Act, the Senior Citizens and

Disabled Persons Prescription Drug Discount Program Act (now

the Illinois Prescription Drug Discount Program Act), and the

Children's Health Insurance Program Act. The adoption of

emergency rules authorized by this subsection (k) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(l) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2007 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2007, including

rules effective July 1, 2007, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (l) shall be deemed to be necessary for the

public interest, safety, and welfare.

(m) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2008 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2008, including

rules effective July 1, 2008, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (m) shall be deemed to be necessary for the

public interest, safety, and welfare.

(n) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2010 budget, emergency rules to implement any provision of

Public Act 96-45 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2010 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (n) shall be

deemed to be necessary for the public interest, safety, and

welfare. The rulemaking authority granted in this subsection

(n) shall apply only to rules promulgated during Fiscal Year

2010.

(o) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2011 budget, emergency rules to implement any provision of

Public Act 96-958 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2011 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (o) is deemed to

be necessary for the public interest, safety, and welfare. The

rulemaking authority granted in this subsection (o) applies

only to rules promulgated on or after July 1, 2010 (the

effective date of Public Act 96-958) through June 30, 2011.

(p) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 97-689,

emergency rules to implement any provision of Public Act 97-689

may be adopted in accordance with this subsection (p) by the

agency charged with administering that provision or

initiative. The 150-day limitation of the effective period of

emergency rules does not apply to rules adopted under this

subsection (p), and the effective period may continue through

June 30, 2013. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (p). The adoption of emergency rules authorized by

this subsection (p) is deemed to be necessary for the public

interest, safety, and welfare.

(q) In order to provide for the expeditious and timely

implementation of the provisions of Articles 7, 8, 9, 11, and

12 of Public Act 98-104, emergency rules to implement any

provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104

may be adopted in accordance with this subsection (q) by the

agency charged with administering that provision or

initiative. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (q). The adoption of emergency rules authorized by

this subsection (q) is deemed to be necessary for the public

interest, safety, and welfare.

(r) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 98-651,

emergency rules to implement Public Act 98-651 may be adopted

in accordance with this subsection (r) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (r). The adoption of emergency rules

authorized by this subsection (r) is deemed to be necessary for

the public interest, safety, and welfare.

(s) In order to provide for the expeditious and timely

implementation of the provisions of Sections 5-5b.1 and 5A-2 of

the Illinois Public Aid Code, emergency rules to implement any

provision of Section 5-5b.1 or Section 5A-2 of the Illinois

Public Aid Code may be adopted in accordance with this

subsection (s) by the Department of Healthcare and Family

Services. The rulemaking authority granted in this subsection

(s) shall apply only to those rules adopted prior to July 1,

2015. Notwithstanding any other provision of this Section, any

emergency rule adopted under this subsection (s) shall only

apply to payments made for State fiscal year 2015. The adoption

of emergency rules authorized by this subsection (s) is deemed

to be necessary for the public interest, safety, and welfare.

(t) In order to provide for the expeditious and timely

implementation of the provisions of Article II of Public Act

99-6, emergency rules to implement the changes made by Article

II of Public Act 99-6 to the Emergency Telephone System Act may

be adopted in accordance with this subsection (t) by the

Department of State Police. The rulemaking authority granted in

this subsection (t) shall apply only to those rules adopted

prior to July 1, 2016. The 24-month limitation on the adoption

of emergency rules does not apply to rules adopted under this

subsection (t). The adoption of emergency rules authorized by

this subsection (t) is deemed to be necessary for the public

interest, safety, and welfare.

(u) In order to provide for the expeditious and timely

implementation of the provisions of the Burn Victims Relief

Act, emergency rules to implement any provision of the Act may

be adopted in accordance with this subsection (u) by the

Department of Insurance. The rulemaking authority granted in

this subsection (u) shall apply only to those rules adopted

prior to December 31, 2015. The adoption of emergency rules

authorized by this subsection (u) is deemed to be necessary for

the public interest, safety, and welfare.

(v) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-516,

emergency rules to implement Public Act 99-516 may be adopted

in accordance with this subsection (v) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (v). The adoption of emergency rules

authorized by this subsection (v) is deemed to be necessary for

the public interest, safety, and welfare.

(w) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-796,

emergency rules to implement the changes made by Public Act

99-796 may be adopted in accordance with this subsection (w) by

the Adjutant General. The adoption of emergency rules

authorized by this subsection (w) is deemed to be necessary for

the public interest, safety, and welfare.

(x) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-906,

emergency rules to implement subsection (i) of Section 16-115D,

subsection (g) of Section 16-128A, and subsection (a) of

Section 16-128B of the Public Utilities Act may be adopted in

accordance with this subsection (x) by the Illinois Commerce

Commission. The rulemaking authority granted in this

subsection (x) shall apply only to those rules adopted within

180 days after June 1, 2017 (the effective date of Public Act

99-906). The adoption of emergency rules authorized by this

subsection (x) is deemed to be necessary for the public

interest, safety, and welfare.

(y) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-23,

emergency rules to implement the changes made by Public Act

100-23 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

Section 55-30 of the Alcoholism and Other Drug Abuse and

Dependency Act, and Sections 74 and 75 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (y) by the respective

Department. The adoption of emergency rules authorized by this

subsection (y) is deemed to be necessary for the public

interest, safety, and welfare.

(z) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-554,

emergency rules to implement the changes made by Public Act

100-554 to Section 4.7 of the Lobbyist Registration Act may be

adopted in accordance with this subsection (z) by the Secretary

of State. The adoption of emergency rules authorized by this

subsection (z) is deemed to be necessary for the public

interest, safety, and welfare.

(aa) In order to provide for the expeditious and timely

initial implementation of the changes made to Articles 5, 5A,

12, and 14 of the Illinois Public Aid Code under the provisions

of Public Act 100-581, the Department of Healthcare and Family

Services may adopt emergency rules in accordance with this

subsection (aa). The 24-month limitation on the adoption of

emergency rules does not apply to rules to initially implement

the changes made to Articles 5, 5A, 12, and 14 of the Illinois

Public Aid Code adopted under this subsection (aa). The

adoption of emergency rules authorized by this subsection (aa)

is deemed to be necessary for the public interest, safety, and

welfare.

(bb) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules to implement the changes made by Public Act

100-587 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

subsection (b) of Section 55-30 of the Alcoholism and Other

Drug Abuse and Dependency Act, Section 5-104 of the Specialized

Mental Health Rehabilitation Act of 2013, and Section 75 and

subsection (b) of Section 74 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (bb) by the respective

Department. The adoption of emergency rules authorized by this

subsection (bb) is deemed to be necessary for the public

interest, safety, and welfare.

(cc) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules may be adopted in accordance with this

subsection (cc) to implement the changes made by Public Act

100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois

Pension Code by the Board created under Article 14 of the Code;

Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by

the Board created under Article 15 of the Code; and Sections

16-190.5 and 16-190.6 of the Illinois Pension Code by the Board

created under Article 16 of the Code. The adoption of emergency

rules authorized by this subsection (cc) is deemed to be

necessary for the public interest, safety, and welfare.

(dd) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-864,

emergency rules to implement the changes made by Public Act

100-864 to Section 3.35 of the Newborn Metabolic Screening Act

may be adopted in accordance with this subsection (dd) by the

Secretary of State. The adoption of emergency rules authorized

by this subsection (dd) is deemed to be necessary for the

public interest, safety, and welfare.

(ee) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-1172 this

amendatory Act of the 100th General Assembly, emergency rules

implementing the Illinois Underground Natural Gas Storage

Safety Act may be adopted in accordance with this subsection by

the Department of Natural Resources. The adoption of emergency

rules authorized by this subsection is deemed to be necessary

for the public interest, safety, and welfare.

(ff) (ee) In order to provide for the expeditious and

timely initial implementation of the changes made to Articles

5A and 14 of the Illinois Public Aid Code under the provisions

of Public Act 100-1181 this amendatory Act of the 100th General

Assembly, the Department of Healthcare and Family Services may

on a one-time-only basis adopt emergency rules in accordance

with this subsection (ff) (ee). The 24-month limitation on the

adoption of emergency rules does not apply to rules to

initially implement the changes made to Articles 5A and 14 of

the Illinois Public Aid Code adopted under this subsection (ff)

(ee). The adoption of emergency rules authorized by this

subsection (ff) (ee) is deemed to be necessary for the public

interest, safety, and welfare.

(gg) (ff) In order to provide for the expeditious and

timely implementation of the provisions of Public Act 101-1

this amendatory Act of the 101st General Assembly, emergency

rules may be adopted by the Department of Labor in accordance

with this subsection (gg) (ff) to implement the changes made by

Public Act 101-1 this amendatory Act of the 101st General

Assembly to the Minimum Wage Law. The adoption of emergency

rules authorized by this subsection (gg) (ff) is deemed to be

necessary for the public interest, safety, and welfare.

(hh) In order to provide for the expeditious and timely

implementation of the provisions of the Leveling the Playing

Field for Illinois Retail Act, emergency rules may be adopted

in accordance with this subsection (hh) to implement the

changes made by the Leveling the Playing Field for Illinois

Retail Act. The adoption of emergency rules authorized by this

subsection (hh) is deemed to be necessary for the public

interest, safety, and welfare.

(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;

100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.

6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;

100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.

3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)

Section 15-10. The Department of Commerce and Economic

Opportunity Law of the Civil Administrative Code of Illinois is

amended by adding Section 605-1025 as follows:

(20 ILCS 605/605-1025 new)

Sec. 605-1025. Data center investment.

(a) The Department shall issue certificates of exemption

from the Retailers' Occupation Tax Act, the Use Tax Act, the

Service Use Tax Act, and the Service Occupation Tax Act, all

locally-imposed retailers' occupation taxes administered and

collected by the Department, the Chicago non-titled Use Tax,

the Electricity Excise Tax Act, and a credit certification

against the taxes imposed under subsections (a) and (b) of

Section 201 of the Illinois Income Tax Act to qualifying

Illinois data centers.

(b) For taxable years beginning on or after January 1,

2019, the Department shall award credits against the taxes

imposed under subsections (a) and (b) of Section 201 of the

Illinois Income Tax Act as provided in Section 229 of the

Illinois Income Tax Act.

(c) For purposes of this Section:

"Data center" means a facility: (1) whose primary

services are the storage, management, and processing of

digital data; and (2) that is used to house (i) computer

and network systems, including associated components such

as servers, network equipment and appliances,

telecommunications, and data storage systems, (ii) systems

for monitoring and managing infrastructure performance,

(iii) Internet-related equipment and services, (iv) data

communications connections, (v) environmental controls,

(vi) fire protection systems, and (vii) security systems

and services.

"Qualifying Illinois data center" means a new or

existing data center that:

(1) is located in the State of Illinois;

(2) in the case of an existing data center, made a

capital investment of at least $250,000,000

collectively by the data center operator and the

tenants of all of its data centers over the 60-month

period immediately prior to January 1, 2020 or

committed to make a capital investment of at least

$250,000,000 over a 60-month period commencing before

January 1, 2020 and ending after January 1, 2020; or

(3) in the case of a new data center, makes a

capital investment of at least $250,000,000 over a

60-month period; and

(4) in the case of both existing and new data

centers, results in the creation of at least 20

full-time or full-time equivalent new jobs over a

period of 60 months by the data center operator and the

tenants of the data center, collectively, associated

with the operation or maintenance of the data center;

those jobs must have a total compensation equal to or

greater than 120% of the median wage paid to full-time

employees in the county where the data center is

located, as determined by the U.S. Bureau of Labor

Statistics; and

(5) is carbon neutral or attains certification

under one or more of the following green building

standards:

(A) BREEAM for New Construction or BREEAM

In-Use;

(B) ENERGY STAR;

(C) Envision;

(D) ISO 50001-energy management;

(E) LEED for Building Design and Construction

or LEED for Operations and Maintenance;

(F) Green Globes for New Construction or Green

Globes for Existing Buildings;

(G) UL 3223; or

(H) an equivalent program approved by the

Department of Commerce and Economic Opportunity.

"Full-time equivalent job" means a job in which the new

employee works for the owner, operator, contractor, or

tenant of a data center or for a corporation under contract

with the owner, operator or tenant of a data center at a

rate of at least 35 hours per week. An owner, operator or

tenant who employs labor or services at a specific site or

facility under contract with another may declare one

full-time, permanent job for every 1,820 man hours worked

per year under that contract. Vacations, paid holidays, and

sick time are included in this computation. Overtime is not

considered a part of regular hours.

"Qualified tangible personal property" means:

electrical systems and equipment; climate control and

chilling equipment and systems; mechanical systems and

equipment; monitoring and secure systems; emergency

generators; hardware; computers; servers; data storage

devices; network connectivity equipment; racks; cabinets;

telecommunications cabling infrastructure; raised floor

systems; peripheral components or systems; software;

mechanical, electrical, or plumbing systems; battery

systems; cooling systems and towers; temperature control

systems; other cabling; and other data center

infrastructure equipment and systems necessary to operate

qualified tangible personal property, including fixtures;

and component parts of any of the foregoing, including

installation, maintenance, repair, refurbishment, and

replacement of qualified tangible personal property to

generate, transform, transmit, distribute, or manage

electricity necessary to operate qualified tangible

personal property; and all other tangible personal

property that is essential to the operations of a computer

data center. "Qualified tangible personal property" also

includes building materials physically incorporated in to

the qualifying data center.

To document the exemption allowed under this Section, the

retailer must obtain from the purchaser a copy of the

certificate of eligibility issued by the Department.

(d) New and existing data centers seeking a certificate of

exemption for new or existing facilities shall apply to the

Department in the manner specified by the Department. The

Department shall determine the duration of the certificate of

exemption awarded under this Act. The duration of the

certificate of exemption may not exceed 20 calendar years. The

Department and any data center seeking the exemption, including

a data center operator on behalf of itself and its tenants,

must enter into a memorandum of understanding that at a minimum

provides:

(1) the details for determining the amount of capital

investment to be made;

(2) the number of new jobs created;

(3) the timeline for achieving the capital investment

and new job goals;

(4) the repayment obligation should those goals not be

achieved and any conditions under which repayment by the

qualifying data center or data center tenant claiming the

exemption will be required;

(5) the duration of the exemption; and

(6) other provisions as deemed necessary by the

Department.

(e) Beginning July 1, 2021, and each year thereafter, the

Department shall annually report to the Governor and the

General Assembly on the outcomes and effectiveness of this

amendatory Act of the 101st General Assembly that shall include

the following:

(1) the name of each recipient business;

(2) the location of the project;

(3) the estimated value of the credit;

(4) the number of new jobs and, if applicable, retained

jobs pledged as a result of the project; and

(5) whether or not the project is located in an

underserved area.

(f) New and existing data centers seeking a certificate of

exemption related to the rehabilitation or construction of data

centers in the State shall require the contractor and all

subcontractors to comply with the requirements of Section 30-22

of the Illinois Procurement Code as they apply to responsible

bidders and to present satisfactory evidence of that compliance

to the Department.

(g) New and existing data centers seeking a certificate of

exemption for the rehabilitation or construction of data

centers in the State shall require the contractor to enter into

a project labor agreement approved by the Department.

(h) Any qualifying data center issued a certificate of

exemption under this Section must annually report to the

Department the total data center tax benefits that are received

by the business. Reports are due no later than May 31 of each

year and shall cover the previous calendar year. The first

report is for the 2019 calendar year and is due no later than

May 31, 2020.

To the extent that a business issued a certificate of

exemption under this Section has obtained an Enterprise Zone

Building Materials Exemption Certificate or a High Impact

Business Building Materials Exemption Certificate, no

additional reporting for those building materials exemption

benefits is required under this Section.

Failure to file a report under this subsection (h) may

result in suspension or revocation of the certificate of

exemption. The Department shall adopt rules governing

suspension or revocation of the certificate of exemption,

including the length of suspension. Factors to be considered in

determining whether a data center certificate of exemption

shall be suspended or revoked include, but are not limited to,

prior compliance with the reporting requirements, cooperation

in discontinuing and correcting violations, the extent of the

violation, and whether the violation was willful or

inadvertent.

(i) The Department shall not issue any new certificates of

exemption under the provisions of this Section after July 1,

2029. This sunset shall not affect any existing certificates of

exemption in effect on July 1, 2029.

Section 15-20. The State Finance Act is amended by adding

Sections 5.891, 5.893, and 5.894 as follows:

(30 ILCS 105/5.891 new)

Sec. 5.891. The Transportation Renewal Fund.

(30 ILCS 105/5.893 new)

Sec. 5.893. The Regional Transportation Authority Capital

Improvement Fund.

(30 ILCS 105/5.894 new)

Sec. 5.894. The Downstate Mass Transportation Capital

Improvement Fund.

Section 15-25. The Illinois Income Tax Act is amended by

adding Section 229 as follows:

(35 ILCS 5/229 new)

Sec. 229. Data center construction employment tax credit.

(a) A taxpayer who has been awarded a credit by the

Department of Commerce and Economic Opportunity under Section

605-1025 of the Department of Commerce and Economic Opportunity

Law of the Civil Administrative Code of Illinois is entitled to

a credit against the taxes imposed under subsections (a) and

(b) of Section 201 of this Act. The amount of the credit shall

be 20% of the wages paid during the taxable year to a full-time

or part-time employee of a construction contractor employed by

a certified data center if those wages are paid for the

construction of a new data center in a geographic area that

meets any one of the following criteria:

(1) the area has a poverty rate of at least 20%,

according to the latest federal decennial census;

(2) 75% or more of the children in the area participate

in the federal free lunch program, according to reported

statistics from the State Board of Education;

(3) 20% or more of the households in the area receive

assistance under the Supplemental Nutrition Assistance

Program (SNAP); or

(4) the area has an average unemployment rate, as

determined by the Department of Employment Security, that

is more than 120% of the national unemployment average, as

determined by the U.S. Department of Labor, for a period of

at least 2 consecutive calendar years preceding the date of

the application.

If the taxpayer is a partnership, a Subchapter S

corporation, or a limited liability company that has elected

partnership tax treatment, the credit shall be allowed to the

partners, shareholders, or members in accordance with the

determination of income and distributive share of income under

Sections 702 and 704 and subchapter S of the Internal Revenue

Code, as applicable. The Department, in cooperation with the

Department of Commerce and Economic Opportunity, shall adopt

rules to enforce and administer this Section. This Section is

exempt from the provisions of Section 250 of this Act.

(b) In no event shall a credit under this Section reduce

the taxpayer's liability to less than zero. If the amount of

the credit exceeds the tax liability for the year, the excess

may be carried forward and applied to the tax liability of the

5 taxable years following the excess credit year. The tax

credit shall be applied to the earliest year for which there is

a tax liability. If there are credits for more than one year

that are available to offset a liability, the earlier credit

shall be applied first.

(c) No credit shall be allowed with respect to any

certification for any taxable year ending after the revocation

of the certification by the Department of Commerce and Economic

Opportunity. Upon receiving notification by the Department of

Commerce and Economic Opportunity of the revocation of

certification, the Department shall notify the taxpayer that no

credit is allowed for any taxable year ending after the

revocation date, as stated in such notification. If any credit

has been allowed with respect to a certification for a taxable

year ending after the revocation date, any refund paid to the

taxpayer for that taxable year shall, to the extent of that

credit allowed, be an erroneous refund within the meaning of

Section 912 of this Act.

Section 15-30. The Use Tax Act is amended by changing

Sections 2 and 3-5 as follows:

(35 ILCS 105/2) (from Ch. 120, par. 439.2)

Sec. 2. Definitions.

"Use" means the exercise by any person of any right or

power over tangible personal property incident to the ownership

of that property, except that it does not include the sale of

such property in any form as tangible personal property in the

regular course of business to the extent that such property is

not first subjected to a use for which it was purchased, and

does not include the use of such property by its owner for

demonstration purposes: Provided that the property purchased

is deemed to be purchased for the purpose of resale, despite

first being used, to the extent to which it is resold as an

ingredient of an intentionally produced product or by-product

of manufacturing. "Use" does not mean the demonstration use or

interim use of tangible personal property by a retailer before

he sells that tangible personal property. For watercraft or

aircraft, if the period of demonstration use or interim use by

the retailer exceeds 18 months, the retailer shall pay on the

retailers' original cost price the tax imposed by this Act, and

no credit for that tax is permitted if the watercraft or

aircraft is subsequently sold by the retailer. "Use" does not

mean the physical incorporation of tangible personal property,

to the extent not first subjected to a use for which it was

purchased, as an ingredient or constituent, into other tangible

personal property (a) which is sold in the regular course of

business or (b) which the person incorporating such ingredient

or constituent therein has undertaken at the time of such

purchase to cause to be transported in interstate commerce to

destinations outside the State of Illinois: Provided that the

property purchased is deemed to be purchased for the purpose of

resale, despite first being used, to the extent to which it is

resold as an ingredient of an intentionally produced product or

by-product of manufacturing.

"Watercraft" means a Class 2, Class 3, or Class 4

watercraft as defined in Section 3-2 of the Boat Registration

and Safety Act, a personal watercraft, or any boat equipped

with an inboard motor.

"Purchase at retail" means the acquisition of the ownership

of or title to tangible personal property through a sale at

retail.

"Purchaser" means anyone who, through a sale at retail,

acquires the ownership of tangible personal property for a

valuable consideration.

"Sale at retail" means any transfer of the ownership of or

title to tangible personal property to a purchaser, for the

purpose of use, and not for the purpose of resale in any form

as tangible personal property to the extent not first subjected

to a use for which it was purchased, for a valuable

consideration: Provided that the property purchased is deemed

to be purchased for the purpose of resale, despite first being

used, to the extent to which it is resold as an ingredient of

an intentionally produced product or by-product of

manufacturing. For this purpose, slag produced as an incident

to manufacturing pig iron or steel and sold is considered to be

an intentionally produced by-product of manufacturing. "Sale

at retail" includes any such transfer made for resale unless

made in compliance with Section 2c of the Retailers' Occupation

Tax Act, as incorporated by reference into Section 12 of this

Act. Transactions whereby the possession of the property is

transferred but the seller retains the title as security for

payment of the selling price are sales.

"Sale at retail" shall also be construed to include any

Illinois florist's sales transaction in which the purchase

order is received in Illinois by a florist and the sale is for

use or consumption, but the Illinois florist has a florist in

another state deliver the property to the purchaser or the

purchaser's donee in such other state.

Nonreusable tangible personal property that is used by

persons engaged in the business of operating a restaurant,

cafeteria, or drive-in is a sale for resale when it is

transferred to customers in the ordinary course of business as

part of the sale of food or beverages and is used to deliver,

package, or consume food or beverages, regardless of where

consumption of the food or beverages occurs. Examples of those

items include, but are not limited to nonreusable, paper and

plastic cups, plates, baskets, boxes, sleeves, buckets or other

containers, utensils, straws, placemats, napkins, doggie bags,

and wrapping or packaging materials that are transferred to

customers as part of the sale of food or beverages in the

ordinary course of business.

The purchase, employment and transfer of such tangible

personal property as newsprint and ink for the primary purpose

of conveying news (with or without other information) is not a

purchase, use or sale of tangible personal property.

"Selling price" means the consideration for a sale valued

in money whether received in money or otherwise, including

cash, credits, property other than as hereinafter provided, and

services, but, prior to January 1, 2020, not including the

value of or credit given for traded-in tangible personal

property where the item that is traded-in is of like kind and

character as that which is being sold; beginning January 1,

2020, "selling price" includes the portion of the value of or

credit given for traded-in motor vehicles of the First Division

as defined in Section 1-146 of the Illinois Vehicle Code of

like kind and character as that which is being sold that

exceeds $10,000. "Selling price" , and shall be determined

without any deduction on account of the cost of the property

sold, the cost of materials used, labor or service cost or any

other expense whatsoever, but does not include interest or

finance charges which appear as separate items on the bill of

sale or sales contract nor charges that are added to prices by

sellers on account of the seller's tax liability under the

"Retailers' Occupation Tax Act", or on account of the seller's

duty to collect, from the purchaser, the tax that is imposed by

this Act, or, except as otherwise provided with respect to any

cigarette tax imposed by a home rule unit, on account of the

seller's tax liability under any local occupation tax

administered by the Department, or, except as otherwise

provided with respect to any cigarette tax imposed by a home

rule unit on account of the seller's duty to collect, from the

purchasers, the tax that is imposed under any local use tax

administered by the Department. Effective December 1, 1985,

"selling price" shall include charges that are added to prices

by sellers on account of the seller's tax liability under the

Cigarette Tax Act, on account of the seller's duty to collect,

from the purchaser, the tax imposed under the Cigarette Use Tax

Act, and on account of the seller's duty to collect, from the

purchaser, any cigarette tax imposed by a home rule unit.

Notwithstanding any law to the contrary, for any motor

vehicle, as defined in Section 1-146 of the Vehicle Code, that

is sold on or after January 1, 2015 for the purpose of leasing

the vehicle for a defined period that is longer than one year

and (1) is a motor vehicle of the second division that: (A) is

a self-contained motor vehicle designed or permanently

converted to provide living quarters for recreational,

camping, or travel use, with direct walk through access to the

living quarters from the driver's seat; (B) is of the van

configuration designed for the transportation of not less than

7 nor more than 16 passengers; or (C) has a gross vehicle

weight rating of 8,000 pounds or less or (2) is a motor vehicle

of the first division, "selling price" or "amount of sale"

means the consideration received by the lessor pursuant to the

lease contract, including amounts due at lease signing and all

monthly or other regular payments charged over the term of the

lease. Also included in the selling price is any amount

received by the lessor from the lessee for the leased vehicle

that is not calculated at the time the lease is executed,

including, but not limited to, excess mileage charges and

charges for excess wear and tear. For sales that occur in

Illinois, with respect to any amount received by the lessor

from the lessee for the leased vehicle that is not calculated

at the time the lease is executed, the lessor who purchased the

motor vehicle does not incur the tax imposed by the Use Tax Act

on those amounts, and the retailer who makes the retail sale of

the motor vehicle to the lessor is not required to collect the

tax imposed by this Act or to pay the tax imposed by the

Retailers' Occupation Tax Act on those amounts. However, the

lessor who purchased the motor vehicle assumes the liability

for reporting and paying the tax on those amounts directly to

the Department in the same form (Illinois Retailers' Occupation

Tax, and local retailers' occupation taxes, if applicable) in

which the retailer would have reported and paid such tax if the

retailer had accounted for the tax to the Department. For

amounts received by the lessor from the lessee that are not

calculated at the time the lease is executed, the lessor must

file the return and pay the tax to the Department by the due

date otherwise required by this Act for returns other than

transaction returns. If the retailer is entitled under this Act

to a discount for collecting and remitting the tax imposed

under this Act to the Department with respect to the sale of

the motor vehicle to the lessor, then the right to the discount

provided in this Act shall be transferred to the lessor with

respect to the tax paid by the lessor for any amount received

by the lessor from the lessee for the leased vehicle that is

not calculated at the time the lease is executed; provided that

the discount is only allowed if the return is timely filed and

for amounts timely paid. The "selling price" of a motor vehicle

that is sold on or after January 1, 2015 for the purpose of

leasing for a defined period of longer than one year shall not

be reduced by the value of or credit given for traded-in

tangible personal property owned by the lessor, nor shall it be

reduced by the value of or credit given for traded-in tangible

personal property owned by the lessee, regardless of whether

the trade-in value thereof is assigned by the lessee to the

lessor. In the case of a motor vehicle that is sold for the

purpose of leasing for a defined period of longer than one

year, the sale occurs at the time of the delivery of the

vehicle, regardless of the due date of any lease payments. A

lessor who incurs a Retailers' Occupation Tax liability on the

sale of a motor vehicle coming off lease may not take a credit

against that liability for the Use Tax the lessor paid upon the

purchase of the motor vehicle (or for any tax the lessor paid

with respect to any amount received by the lessor from the

lessee for the leased vehicle that was not calculated at the

time the lease was executed) if the selling price of the motor

vehicle at the time of purchase was calculated using the

definition of "selling price" as defined in this paragraph.

Notwithstanding any other provision of this Act to the

contrary, lessors shall file all returns and make all payments

required under this paragraph to the Department by electronic

means in the manner and form as required by the Department.

This paragraph does not apply to leases of motor vehicles for

which, at the time the lease is entered into, the term of the

lease is not a defined period, including leases with a defined

initial period with the option to continue the lease on a

month-to-month or other basis beyond the initial defined

period.

The phrase "like kind and character" shall be liberally

construed (including but not limited to any form of motor

vehicle for any form of motor vehicle, or any kind of farm or

agricultural implement for any other kind of farm or

agricultural implement), while not including a kind of item

which, if sold at retail by that retailer, would be exempt from

retailers' occupation tax and use tax as an isolated or

occasional sale.

"Department" means the Department of Revenue.

"Person" means any natural individual, firm, partnership,

association, joint stock company, joint adventure, public or

private corporation, limited liability company, or a receiver,

executor, trustee, guardian or other representative appointed

by order of any court.

"Retailer" means and includes every person engaged in the

business of making sales at retail as defined in this Section.

A person who holds himself or herself out as being engaged

(or who habitually engages) in selling tangible personal

property at retail is a retailer hereunder with respect to such

sales (and not primarily in a service occupation)

notwithstanding the fact that such person designs and produces

such tangible personal property on special order for the

purchaser and in such a way as to render the property of value

only to such purchaser, if such tangible personal property so

produced on special order serves substantially the same

function as stock or standard items of tangible personal

property that are sold at retail.

A person whose activities are organized and conducted

primarily as a not-for-profit service enterprise, and who

engages in selling tangible personal property at retail

(whether to the public or merely to members and their guests)

is a retailer with respect to such transactions, excepting only

a person organized and operated exclusively for charitable,

religious or educational purposes either (1), to the extent of

sales by such person to its members, students, patients or

inmates of tangible personal property to be used primarily for

the purposes of such person, or (2), to the extent of sales by

such person of tangible personal property which is not sold or

offered for sale by persons organized for profit. The selling

of school books and school supplies by schools at retail to

students is not "primarily for the purposes of" the school

which does such selling. This paragraph does not apply to nor

subject to taxation occasional dinners, social or similar

activities of a person organized and operated exclusively for

charitable, religious or educational purposes, whether or not

such activities are open to the public.

A person who is the recipient of a grant or contract under

Title VII of the Older Americans Act of 1965 (P.L. 92-258) and

serves meals to participants in the federal Nutrition Program

for the Elderly in return for contributions established in

amount by the individual participant pursuant to a schedule of

suggested fees as provided for in the federal Act is not a

retailer under this Act with respect to such transactions.

Persons who engage in the business of transferring tangible

personal property upon the redemption of trading stamps are

retailers hereunder when engaged in such business.

The isolated or occasional sale of tangible personal

property at retail by a person who does not hold himself out as

being engaged (or who does not habitually engage) in selling

such tangible personal property at retail or a sale through a

bulk vending machine does not make such person a retailer

hereunder. However, any person who is engaged in a business

which is not subject to the tax imposed by the "Retailers'

Occupation Tax Act" because of involving the sale of or a

contract to sell real estate or a construction contract to

improve real estate, but who, in the course of conducting such

business, transfers tangible personal property to users or

consumers in the finished form in which it was purchased, and

which does not become real estate, under any provision of a

construction contract or real estate sale or real estate sales

agreement entered into with some other person arising out of or

because of such nontaxable business, is a retailer to the

extent of the value of the tangible personal property so

transferred. If, in such transaction, a separate charge is made

for the tangible personal property so transferred, the value of

such property, for the purposes of this Act, is the amount so

separately charged, but not less than the cost of such property

to the transferor; if no separate charge is made, the value of

such property, for the purposes of this Act, is the cost to the

transferor of such tangible personal property.

"Retailer maintaining a place of business in this State",

or any like term, means and includes any of the following

retailers:

(1) A retailer having or maintaining within this State,

directly or by a subsidiary, an office, distribution house,

sales house, warehouse or other place of business, or any

agent or other representative operating within this State

under the authority of the retailer or its subsidiary,

irrespective of whether such place of business or agent or

other representative is located here permanently or

temporarily, or whether such retailer or subsidiary is

licensed to do business in this State. However, the

ownership of property that is located at the premises of a

printer with which the retailer has contracted for printing

and that consists of the final printed product, property

that becomes a part of the final printed product, or copy

from which the printed product is produced shall not result

in the retailer being deemed to have or maintain an office,

distribution house, sales house, warehouse, or other place

of business within this State.

(1.1) (Blank). A retailer having a contract with a

person located in this State under which the person, for a

commission or other consideration based upon the sale of

tangible personal property by the retailer, directly or

indirectly refers potential customers to the retailer by

providing to the potential customers a promotional code or

other mechanism that allows the retailer to track purchases

referred by such persons. Examples of mechanisms that allow

the retailer to track purchases referred by such persons

include but are not limited to the use of a link on the

person's Internet website, promotional codes distributed

through the person's hand-delivered or mailed material,

and promotional codes distributed by the person through

radio or other broadcast media. The provisions of this

paragraph (1.1) shall apply only if the cumulative gross

receipts from sales of tangible personal property by the

retailer to customers who are referred to the retailer by

all persons in this State under such contracts exceed

$10,000 during the preceding 4 quarterly periods ending on

the last day of March, June, September, and December. A

retailer meeting the requirements of this paragraph (1.1)

shall be presumed to be maintaining a place of business in

this State but may rebut this presumption by submitting

proof that the referrals or other activities pursued within

this State by such persons were not sufficient to meet the

nexus standards of the United States Constitution during

the preceding 4 quarterly periods.

(1.2) (Blank). Beginning July 1, 2011, a retailer

having a contract with a person located in this State under

which:

(A) the retailer sells the same or substantially

similar line of products as the person located in this

State and does so using an identical or substantially

similar name, trade name, or trademark as the person

located in this State; and

(B) the retailer provides a commission or other

consideration to the person located in this State based

upon the sale of tangible personal property by the

retailer.

The provisions of this paragraph (1.2) shall apply only if

the cumulative gross receipts from sales of tangible

personal property by the retailer to customers in this

State under all such contracts exceed $10,000 during the

preceding 4 quarterly periods ending on the last day of

March, June, September, and December.

(2) (Blank). A retailer soliciting orders for tangible

personal property by means of a telecommunication or

television shopping system (which utilizes toll free

numbers) which is intended by the retailer to be broadcast

by cable television or other means of broadcasting, to

consumers located in this State.

(3) (Blank). A retailer, pursuant to a contract with a

broadcaster or publisher located in this State, soliciting

orders for tangible personal property by means of

advertising which is disseminated primarily to consumers

located in this State and only secondarily to bordering

jurisdictions.

(4) (Blank). A retailer soliciting orders for tangible

personal property by mail if the solicitations are

substantial and recurring and if the retailer benefits from

any banking, financing, debt collection,

telecommunication, or marketing activities occurring in

this State or benefits from the location in this State of

authorized installation, servicing, or repair facilities.

(5) (Blank). A retailer that is owned or controlled by

the same interests that own or control any retailer

engaging in business in the same or similar line of

business in this State.

(6) (Blank). A retailer having a franchisee or licensee

operating under its trade name if the franchisee or

licensee is required to collect the tax under this Section.

(7) (Blank). A retailer, pursuant to a contract with a

cable television operator located in this State,

soliciting orders for tangible personal property by means

of advertising which is transmitted or distributed over a

cable television system in this State.

(8) (Blank). A retailer engaging in activities in

Illinois, which activities in the state in which the retail

business engaging in such activities is located would

constitute maintaining a place of business in that state.

(9) Beginning October 1, 2018 through June 30, 2020, a

retailer making sales of tangible personal property to

purchasers in Illinois from outside of Illinois if:

(A) the cumulative gross receipts from sales of

tangible personal property to purchasers in Illinois

are $100,000 or more; or

(B) the retailer enters into 200 or more separate

transactions for the sale of tangible personal

property to purchasers in Illinois.

The retailer shall determine on a quarterly basis,

ending on the last day of March, June, September, and

December, whether he or she meets the criteria of either

subparagraph (A) or (B) of this paragraph (9) for the

preceding 12-month period. If the retailer meets the

criteria of either subparagraph (A) or (B) for a 12-month

period, he or she is considered a retailer maintaining a

place of business in this State and is required to collect

and remit the tax imposed under this Act and file returns

for one year. At the end of that one-year period, the

retailer shall determine whether the retailer met the

criteria of either subparagraph (A) or (B) during the

preceding 12-month period. If the retailer met the criteria

in either subparagraph (A) or (B) for the preceding

12-month period, he or she is considered a retailer

maintaining a place of business in this State and is

required to collect and remit the tax imposed under this

Act and file returns for the subsequent year. If at the end

of a one-year period a retailer that was required to

collect and remit the tax imposed under this Act determines

that he or she did not meet the criteria in either

subparagraph (A) or (B) during the preceding 12-month

period, the retailer shall subsequently determine on a

quarterly basis, ending on the last day of March, June,

September, and December, whether he or she meets the

criteria of either subparagraph (A) or (B) for the

preceding 12-month period.

"Bulk vending machine" means a vending machine, containing

unsorted confections, nuts, toys, or other items designed

primarily to be used or played with by children which, when a

coin or coins of a denomination not larger than $0.50 are

inserted, are dispensed in equal portions, at random and

without selection by the customer.

(Source: P.A. 99-78, eff. 7-20-15; 100-587, eff. 6-4-18.)

(35 ILCS 105/3-5)

Sec. 3-5. Exemptions. Use of the following tangible

personal property is exempt from the tax imposed by this Act:

(1) Personal property purchased from a corporation,

society, association, foundation, institution, or

organization, other than a limited liability company, that is

organized and operated as a not-for-profit service enterprise

for the benefit of persons 65 years of age or older if the

personal property was not purchased by the enterprise for the

purpose of resale by the enterprise.

(2) Personal property purchased by a not-for-profit

Illinois county fair association for use in conducting,

operating, or promoting the county fair.

(3) Personal property purchased by a not-for-profit arts or

cultural organization that establishes, by proof required by

the Department by rule, that it has received an exemption under

Section 501(c)(3) of the Internal Revenue Code and that is

organized and operated primarily for the presentation or

support of arts or cultural programming, activities, or

services. These organizations include, but are not limited to,

music and dramatic arts organizations such as symphony

orchestras and theatrical groups, arts and cultural service

organizations, local arts councils, visual arts organizations,

and media arts organizations. On and after July 1, 2001 (the

effective date of Public Act 92-35), however, an entity

otherwise eligible for this exemption shall not make tax-free

purchases unless it has an active identification number issued

by the Department.

(4) Personal property purchased by a governmental body, by

a corporation, society, association, foundation, or

institution organized and operated exclusively for charitable,

religious, or educational purposes, or by a not-for-profit

corporation, society, association, foundation, institution, or

organization that has no compensated officers or employees and

that is organized and operated primarily for the recreation of

persons 55 years of age or older. A limited liability company

may qualify for the exemption under this paragraph only if the

limited liability company is organized and operated

exclusively for educational purposes. On and after July 1,

1987, however, no entity otherwise eligible for this exemption

shall make tax-free purchases unless it has an active exemption

identification number issued by the Department.

(5) Until July 1, 2003, a passenger car that is a

replacement vehicle to the extent that the purchase price of

the car is subject to the Replacement Vehicle Tax.

(6) Until July 1, 2003 and beginning again on September 1,

2004 through August 30, 2014, graphic arts machinery and

equipment, including repair and replacement parts, both new and

used, and including that manufactured on special order,

certified by the purchaser to be used primarily for graphic

arts production, and including machinery and equipment

purchased for lease. Equipment includes chemicals or chemicals

acting as catalysts but only if the chemicals or chemicals

acting as catalysts effect a direct and immediate change upon a

graphic arts product. Beginning on July 1, 2017, graphic arts

machinery and equipment is included in the manufacturing and

assembling machinery and equipment exemption under paragraph

(18).

(7) Farm chemicals.

(8) Legal tender, currency, medallions, or gold or silver

coinage issued by the State of Illinois, the government of the

United States of America, or the government of any foreign

country, and bullion.

(9) Personal property purchased from a teacher-sponsored

student organization affiliated with an elementary or

secondary school located in Illinois.

(10) A motor vehicle that is used for automobile renting,

as defined in the Automobile Renting Occupation and Use Tax

Act.

(11) Farm machinery and equipment, both new and used,

including that manufactured on special order, certified by the

purchaser to be used primarily for production agriculture or

State or federal agricultural programs, including individual

replacement parts for the machinery and equipment, including

machinery and equipment purchased for lease, and including

implements of husbandry defined in Section 1-130 of the

Illinois Vehicle Code, farm machinery and agricultural

chemical and fertilizer spreaders, and nurse wagons required to

be registered under Section 3-809 of the Illinois Vehicle Code,

but excluding other motor vehicles required to be registered

under the Illinois Vehicle Code. Horticultural polyhouses or

hoop houses used for propagating, growing, or overwintering

plants shall be considered farm machinery and equipment under

this item (11). Agricultural chemical tender tanks and dry

boxes shall include units sold separately from a motor vehicle

required to be licensed and units sold mounted on a motor

vehicle required to be licensed if the selling price of the

tender is separately stated.

Farm machinery and equipment shall include precision

farming equipment that is installed or purchased to be

installed on farm machinery and equipment including, but not

limited to, tractors, harvesters, sprayers, planters, seeders,

or spreaders. Precision farming equipment includes, but is not

limited to, soil testing sensors, computers, monitors,

software, global positioning and mapping systems, and other

such equipment.

Farm machinery and equipment also includes computers,

sensors, software, and related equipment used primarily in the

computer-assisted operation of production agriculture

facilities, equipment, and activities such as, but not limited

to, the collection, monitoring, and correlation of animal and

crop data for the purpose of formulating animal diets and

agricultural chemicals. This item (11) is exempt from the

provisions of Section 3-90.

(12) Until June 30, 2013, fuel and petroleum products sold

to or used by an air common carrier, certified by the carrier

to be used for consumption, shipment, or storage in the conduct

of its business as an air common carrier, for a flight destined

for or returning from a location or locations outside the

United States without regard to previous or subsequent domestic

stopovers.

Beginning July 1, 2013, fuel and petroleum products sold to

or used by an air carrier, certified by the carrier to be used

for consumption, shipment, or storage in the conduct of its

business as an air common carrier, for a flight that (i) is

engaged in foreign trade or is engaged in trade between the

United States and any of its possessions and (ii) transports at

least one individual or package for hire from the city of

origination to the city of final destination on the same

aircraft, without regard to a change in the flight number of

that aircraft.

(13) Proceeds of mandatory service charges separately

stated on customers' bills for the purchase and consumption of

food and beverages purchased at retail from a retailer, to the

extent that the proceeds of the service charge are in fact

turned over as tips or as a substitute for tips to the

employees who participate directly in preparing, serving,

hosting or cleaning up the food or beverage function with

respect to which the service charge is imposed.

(14) Until July 1, 2003, oil field exploration, drilling,

and production equipment, including (i) rigs and parts of rigs,

rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

tubular goods, including casing and drill strings, (iii) pumps

and pump-jack units, (iv) storage tanks and flow lines, (v) any

individual replacement part for oil field exploration,

drilling, and production equipment, and (vi) machinery and

equipment purchased for lease; but excluding motor vehicles

required to be registered under the Illinois Vehicle Code.

(15) Photoprocessing machinery and equipment, including

repair and replacement parts, both new and used, including that

manufactured on special order, certified by the purchaser to be

used primarily for photoprocessing, and including

photoprocessing machinery and equipment purchased for lease.

(16) Until July 1, 2023, coal and aggregate exploration,

mining, off-highway hauling, processing, maintenance, and

reclamation equipment, including replacement parts and

equipment, and including equipment purchased for lease, but

excluding motor vehicles required to be registered under the

Illinois Vehicle Code. The changes made to this Section by

Public Act 97-767 apply on and after July 1, 2003, but no claim

for credit or refund is allowed on or after August 16, 2013

(the effective date of Public Act 98-456) for such taxes paid

during the period beginning July 1, 2003 and ending on August

16, 2013 (the effective date of Public Act 98-456).

(17) Until July 1, 2003, distillation machinery and

equipment, sold as a unit or kit, assembled or installed by the

retailer, certified by the user to be used only for the

production of ethyl alcohol that will be used for consumption

as motor fuel or as a component of motor fuel for the personal

use of the user, and not subject to sale or resale.

(18) Manufacturing and assembling machinery and equipment

used primarily in the process of manufacturing or assembling

tangible personal property for wholesale or retail sale or

lease, whether that sale or lease is made directly by the

manufacturer or by some other person, whether the materials

used in the process are owned by the manufacturer or some other

person, or whether that sale or lease is made apart from or as

an incident to the seller's engaging in the service occupation

of producing machines, tools, dies, jigs, patterns, gauges, or

other similar items of no commercial value on special order for

a particular purchaser. The exemption provided by this

paragraph (18) does not include machinery and equipment used in

(i) the generation of electricity for wholesale or retail sale;

(ii) the generation or treatment of natural or artificial gas

for wholesale or retail sale that is delivered to customers

through pipes, pipelines, or mains; or (iii) the treatment of

water for wholesale or retail sale that is delivered to

customers through pipes, pipelines, or mains. The provisions of

Public Act 98-583 are declaratory of existing law as to the

meaning and scope of this exemption. Beginning on July 1, 2017,

the exemption provided by this paragraph (18) includes, but is

not limited to, graphic arts machinery and equipment, as

defined in paragraph (6) of this Section.

(19) Personal property delivered to a purchaser or

purchaser's donee inside Illinois when the purchase order for

that personal property was received by a florist located

outside Illinois who has a florist located inside Illinois

deliver the personal property.

(20) Semen used for artificial insemination of livestock

for direct agricultural production.

(21) Horses, or interests in horses, registered with and

meeting the requirements of any of the Arabian Horse Club

Registry of America, Appaloosa Horse Club, American Quarter

Horse Association, United States Trotting Association, or

Jockey Club, as appropriate, used for purposes of breeding or

racing for prizes. This item (21) is exempt from the provisions

of Section 3-90, and the exemption provided for under this item

(21) applies for all periods beginning May 30, 1995, but no

claim for credit or refund is allowed on or after January 1,

2008 for such taxes paid during the period beginning May 30,

2000 and ending on January 1, 2008.

(22) Computers and communications equipment utilized for

any hospital purpose and equipment used in the diagnosis,

analysis, or treatment of hospital patients purchased by a

lessor who leases the equipment, under a lease of one year or

longer executed or in effect at the time the lessor would

otherwise be subject to the tax imposed by this Act, to a

hospital that has been issued an active tax exemption

identification number by the Department under Section 1g of the

Retailers' Occupation Tax Act. If the equipment is leased in a

manner that does not qualify for this exemption or is used in

any other non-exempt manner, the lessor shall be liable for the

tax imposed under this Act or the Service Use Tax Act, as the

case may be, based on the fair market value of the property at

the time the non-qualifying use occurs. No lessor shall collect

or attempt to collect an amount (however designated) that

purports to reimburse that lessor for the tax imposed by this

Act or the Service Use Tax Act, as the case may be, if the tax

has not been paid by the lessor. If a lessor improperly

collects any such amount from the lessee, the lessee shall have

a legal right to claim a refund of that amount from the lessor.

If, however, that amount is not refunded to the lessee for any

reason, the lessor is liable to pay that amount to the

Department.

(23) Personal property purchased by a lessor who leases the

property, under a lease of one year or longer executed or in

effect at the time the lessor would otherwise be subject to the

tax imposed by this Act, to a governmental body that has been

issued an active sales tax exemption identification number by

the Department under Section 1g of the Retailers' Occupation

Tax Act. If the property is leased in a manner that does not

qualify for this exemption or used in any other non-exempt

manner, the lessor shall be liable for the tax imposed under

this Act or the Service Use Tax Act, as the case may be, based

on the fair market value of the property at the time the

non-qualifying use occurs. No lessor shall collect or attempt

to collect an amount (however designated) that purports to

reimburse that lessor for the tax imposed by this Act or the

Service Use Tax Act, as the case may be, if the tax has not been

paid by the lessor. If a lessor improperly collects any such

amount from the lessee, the lessee shall have a legal right to

claim a refund of that amount from the lessor. If, however,

that amount is not refunded to the lessee for any reason, the

lessor is liable to pay that amount to the Department.

(24) Beginning with taxable years ending on or after

December 31, 1995 and ending with taxable years ending on or

before December 31, 2004, personal property that is donated for

disaster relief to be used in a State or federally declared

disaster area in Illinois or bordering Illinois by a

manufacturer or retailer that is registered in this State to a

corporation, society, association, foundation, or institution

that has been issued a sales tax exemption identification

number by the Department that assists victims of the disaster

who reside within the declared disaster area.

(25) Beginning with taxable years ending on or after

December 31, 1995 and ending with taxable years ending on or

before December 31, 2004, personal property that is used in the

performance of infrastructure repairs in this State, including

but not limited to municipal roads and streets, access roads,

bridges, sidewalks, waste disposal systems, water and sewer

line extensions, water distribution and purification

facilities, storm water drainage and retention facilities, and

sewage treatment facilities, resulting from a State or

federally declared disaster in Illinois or bordering Illinois

when such repairs are initiated on facilities located in the

declared disaster area within 6 months after the disaster.

(26) Beginning July 1, 1999, game or game birds purchased

at a "game breeding and hunting preserve area" as that term is

used in the Wildlife Code. This paragraph is exempt from the

provisions of Section 3-90.

(27) A motor vehicle, as that term is defined in Section

1-146 of the Illinois Vehicle Code, that is donated to a

corporation, limited liability company, society, association,

foundation, or institution that is determined by the Department

to be organized and operated exclusively for educational

purposes. For purposes of this exemption, "a corporation,

limited liability company, society, association, foundation,

or institution organized and operated exclusively for

educational purposes" means all tax-supported public schools,

private schools that offer systematic instruction in useful

branches of learning by methods common to public schools and

that compare favorably in their scope and intensity with the

course of study presented in tax-supported schools, and

vocational or technical schools or institutes organized and

operated exclusively to provide a course of study of not less

than 6 weeks duration and designed to prepare individuals to

follow a trade or to pursue a manual, technical, mechanical,

industrial, business, or commercial occupation.

(28) Beginning January 1, 2000, personal property,

including food, purchased through fundraising events for the

benefit of a public or private elementary or secondary school,

a group of those schools, or one or more school districts if

the events are sponsored by an entity recognized by the school

district that consists primarily of volunteers and includes

parents and teachers of the school children. This paragraph

does not apply to fundraising events (i) for the benefit of

private home instruction or (ii) for which the fundraising

entity purchases the personal property sold at the events from

another individual or entity that sold the property for the

purpose of resale by the fundraising entity and that profits

from the sale to the fundraising entity. This paragraph is

exempt from the provisions of Section 3-90.

(29) Beginning January 1, 2000 and through December 31,

2001, new or used automatic vending machines that prepare and

serve hot food and beverages, including coffee, soup, and other

items, and replacement parts for these machines. Beginning

January 1, 2002 and through June 30, 2003, machines and parts

for machines used in commercial, coin-operated amusement and

vending business if a use or occupation tax is paid on the

gross receipts derived from the use of the commercial,

coin-operated amusement and vending machines. This paragraph

is exempt from the provisions of Section 3-90.

(30) Beginning January 1, 2001 and through June 30, 2016,

food for human consumption that is to be consumed off the

premises where it is sold (other than alcoholic beverages, soft

drinks, and food that has been prepared for immediate

consumption) and prescription and nonprescription medicines,

drugs, medical appliances, and insulin, urine testing

materials, syringes, and needles used by diabetics, for human

use, when purchased for use by a person receiving medical

assistance under Article V of the Illinois Public Aid Code who

resides in a licensed long-term care facility, as defined in

the Nursing Home Care Act, or in a licensed facility as defined

in the ID/DD Community Care Act, the MC/DD Act, or the

Specialized Mental Health Rehabilitation Act of 2013.

(31) Beginning on August 2, 2001 (the effective date of

Public Act 92-227), computers and communications equipment

utilized for any hospital purpose and equipment used in the

diagnosis, analysis, or treatment of hospital patients

purchased by a lessor who leases the equipment, under a lease

of one year or longer executed or in effect at the time the

lessor would otherwise be subject to the tax imposed by this

Act, to a hospital that has been issued an active tax exemption

identification number by the Department under Section 1g of the

Retailers' Occupation Tax Act. If the equipment is leased in a

manner that does not qualify for this exemption or is used in

any other nonexempt manner, the lessor shall be liable for the

tax imposed under this Act or the Service Use Tax Act, as the

case may be, based on the fair market value of the property at

the time the nonqualifying use occurs. No lessor shall collect

or attempt to collect an amount (however designated) that

purports to reimburse that lessor for the tax imposed by this

Act or the Service Use Tax Act, as the case may be, if the tax

has not been paid by the lessor. If a lessor improperly

collects any such amount from the lessee, the lessee shall have

a legal right to claim a refund of that amount from the lessor.

If, however, that amount is not refunded to the lessee for any

reason, the lessor is liable to pay that amount to the

Department. This paragraph is exempt from the provisions of

Section 3-90.

(32) Beginning on August 2, 2001 (the effective date of

Public Act 92-227), personal property purchased by a lessor who

leases the property, under a lease of one year or longer

executed or in effect at the time the lessor would otherwise be

subject to the tax imposed by this Act, to a governmental body

that has been issued an active sales tax exemption

identification number by the Department under Section 1g of the

Retailers' Occupation Tax Act. If the property is leased in a

manner that does not qualify for this exemption or used in any

other nonexempt manner, the lessor shall be liable for the tax

imposed under this Act or the Service Use Tax Act, as the case

may be, based on the fair market value of the property at the

time the nonqualifying use occurs. No lessor shall collect or

attempt to collect an amount (however designated) that purports

to reimburse that lessor for the tax imposed by this Act or the

Service Use Tax Act, as the case may be, if the tax has not been

paid by the lessor. If a lessor improperly collects any such

amount from the lessee, the lessee shall have a legal right to

claim a refund of that amount from the lessor. If, however,

that amount is not refunded to the lessee for any reason, the

lessor is liable to pay that amount to the Department. This

paragraph is exempt from the provisions of Section 3-90.

(33) On and after July 1, 2003 and through June 30, 2004,

the use in this State of motor vehicles of the second division

with a gross vehicle weight in excess of 8,000 pounds and that

are subject to the commercial distribution fee imposed under

Section 3-815.1 of the Illinois Vehicle Code. Beginning on July

1, 2004 and through June 30, 2005, the use in this State of

motor vehicles of the second division: (i) with a gross vehicle

weight rating in excess of 8,000 pounds; (ii) that are subject

to the commercial distribution fee imposed under Section

3-815.1 of the Illinois Vehicle Code; and (iii) that are

primarily used for commercial purposes. Through June 30, 2005,

this exemption applies to repair and replacement parts added

after the initial purchase of such a motor vehicle if that

motor vehicle is used in a manner that would qualify for the

rolling stock exemption otherwise provided for in this Act. For

purposes of this paragraph, the term "used for commercial

purposes" means the transportation of persons or property in

furtherance of any commercial or industrial enterprise,

whether for-hire or not.

(34) Beginning January 1, 2008, tangible personal property

used in the construction or maintenance of a community water

supply, as defined under Section 3.145 of the Environmental

Protection Act, that is operated by a not-for-profit

corporation that holds a valid water supply permit issued under

Title IV of the Environmental Protection Act. This paragraph is

exempt from the provisions of Section 3-90.

(35) Beginning January 1, 2010, materials, parts,

equipment, components, and furnishings incorporated into or

upon an aircraft as part of the modification, refurbishment,

completion, replacement, repair, or maintenance of the

aircraft. This exemption includes consumable supplies used in

the modification, refurbishment, completion, replacement,

repair, and maintenance of aircraft, but excludes any

materials, parts, equipment, components, and consumable

supplies used in the modification, replacement, repair, and

maintenance of aircraft engines or power plants, whether such

engines or power plants are installed or uninstalled upon any

such aircraft. "Consumable supplies" include, but are not

limited to, adhesive, tape, sandpaper, general purpose

lubricants, cleaning solution, latex gloves, and protective

films. This exemption applies only to the use of qualifying

tangible personal property by persons who modify, refurbish,

complete, repair, replace, or maintain aircraft and who (i)

hold an Air Agency Certificate and are empowered to operate an

approved repair station by the Federal Aviation

Administration, (ii) have a Class IV Rating, and (iii) conduct

operations in accordance with Part 145 of the Federal Aviation

Regulations. The exemption does not include aircraft operated

by a commercial air carrier providing scheduled passenger air

service pursuant to authority issued under Part 121 or Part 129

of the Federal Aviation Regulations. The changes made to this

paragraph (35) by Public Act 98-534 are declarative of existing

law.

(36) Tangible personal property purchased by a

public-facilities corporation, as described in Section

11-65-10 of the Illinois Municipal Code, for purposes of

constructing or furnishing a municipal convention hall, but

only if the legal title to the municipal convention hall is

transferred to the municipality without any further

consideration by or on behalf of the municipality at the time

of the completion of the municipal convention hall or upon the

retirement or redemption of any bonds or other debt instruments

issued by the public-facilities corporation in connection with

the development of the municipal convention hall. This

exemption includes existing public-facilities corporations as

provided in Section 11-65-25 of the Illinois Municipal Code.

This paragraph is exempt from the provisions of Section 3-90.

(37) Beginning January 1, 2017, menstrual pads, tampons,

and menstrual cups.

(38) Merchandise that is subject to the Rental Purchase

Agreement Occupation and Use Tax. The purchaser must certify

that the item is purchased to be rented subject to a rental

purchase agreement, as defined in the Rental Purchase Agreement

Act, and provide proof of registration under the Rental

Purchase Agreement Occupation and Use Tax Act. This paragraph

is exempt from the provisions of Section 3-90.

(39) Tangible personal property purchased by a purchaser

who is exempt from the tax imposed by this Act by operation of

federal law. This paragraph is exempt from the provisions of

Section 3-90.

(40) Qualified tangible personal property used in the

construction or operation of a data center that has been

granted a certificate of exemption by the Department of

Commerce and Economic Opportunity, whether that tangible

personal property is purchased by the owner, operator, or

tenant of the data center or by a contractor or subcontractor

of the owner, operator, or tenant. Data centers that would have

qualified for a certificate of exemption prior to January 1,

2020 had this amendatory Act of the 101st General Assembly been

in effect, may apply for and obtain an exemption for subsequent

purchases of computer equipment or enabling software purchased

or leased to upgrade, supplement, or replace computer equipment

or enabling software purchased or leased in the original

investment that would have qualified.

The Department of Commerce and Economic Opportunity shall

grant a certificate of exemption under this item (40) to

qualified data centers as defined by Section 605-1025 of the

Department of Commerce and Economic Opportunity Law of the

Civil Administrative Code of Illinois.

For the purposes of this item (40):

"Data center" means a building or a series of buildings

rehabilitated or constructed to house working servers in

one physical location or multiple sites within the State of

Illinois.

"Qualified tangible personal property" means:

electrical systems and equipment; climate control and

chilling equipment and systems; mechanical systems and

equipment; monitoring and secure systems; emergency

generators; hardware; computers; servers; data storage

devices; network connectivity equipment; racks; cabinets;

telecommunications cabling infrastructure; raised floor

systems; peripheral components or systems; software;

mechanical, electrical, or plumbing systems; battery

systems; cooling systems and towers; temperature control

systems; other cabling; and other data center

infrastructure equipment and systems necessary to operate

qualified tangible personal property, including fixtures;

and component parts of any of the foregoing, including

installation, maintenance, repair, refurbishment, and

replacement of qualified tangible personal property to

generate, transform, transmit, distribute, or manage

electricity necessary to operate qualified tangible

personal property; and all other tangible personal

property that is essential to the operations of a computer

data center. The term "qualified tangible personal

property" also includes building materials physically

incorporated in to the qualifying data center. To document

the exemption allowed under this Section, the retailer must

obtain from the purchaser a copy of the certificate of

eligibility issued by the Department of Commerce and

Economic Opportunity.

This item (40) is exempt from the provisions of Section

3-90.

(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;

100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.

6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised

1-8-19.)

Section 15-35. The Service Use Tax Act is amended by

changing Section 3-5 as follows:

(35 ILCS 110/3-5)

Sec. 3-5. Exemptions. Use of the following tangible

personal property is exempt from the tax imposed by this Act:

(1) Personal property purchased from a corporation,

society, association, foundation, institution, or

organization, other than a limited liability company, that is

organized and operated as a not-for-profit service enterprise

for the benefit of persons 65 years of age or older if the

personal property was not purchased by the enterprise for the

purpose of resale by the enterprise.

(2) Personal property purchased by a non-profit Illinois

county fair association for use in conducting, operating, or

promoting the county fair.

(3) Personal property purchased by a not-for-profit arts or

cultural organization that establishes, by proof required by

the Department by rule, that it has received an exemption under

Section 501(c)(3) of the Internal Revenue Code and that is

organized and operated primarily for the presentation or

support of arts or cultural programming, activities, or

services. These organizations include, but are not limited to,

music and dramatic arts organizations such as symphony

orchestras and theatrical groups, arts and cultural service

organizations, local arts councils, visual arts organizations,

and media arts organizations. On and after July 1, 2001 (the

effective date of Public Act 92-35) this amendatory Act of the

92nd General Assembly, however, an entity otherwise eligible

for this exemption shall not make tax-free purchases unless it

has an active identification number issued by the Department.

(4) Legal tender, currency, medallions, or gold or silver

coinage issued by the State of Illinois, the government of the

United States of America, or the government of any foreign

country, and bullion.

(5) Until July 1, 2003 and beginning again on September 1,

2004 through August 30, 2014, graphic arts machinery and

equipment, including repair and replacement parts, both new and

used, and including that manufactured on special order or

purchased for lease, certified by the purchaser to be used

primarily for graphic arts production. Equipment includes

chemicals or chemicals acting as catalysts but only if the

chemicals or chemicals acting as catalysts effect a direct and

immediate change upon a graphic arts product. Beginning on July

1, 2017, graphic arts machinery and equipment is included in

the manufacturing and assembling machinery and equipment

exemption under Section 2 of this Act.

(6) Personal property purchased from a teacher-sponsored

student organization affiliated with an elementary or

secondary school located in Illinois.

(7) Farm machinery and equipment, both new and used,

including that manufactured on special order, certified by the

purchaser to be used primarily for production agriculture or

State or federal agricultural programs, including individual

replacement parts for the machinery and equipment, including

machinery and equipment purchased for lease, and including

implements of husbandry defined in Section 1-130 of the

Illinois Vehicle Code, farm machinery and agricultural

chemical and fertilizer spreaders, and nurse wagons required to

be registered under Section 3-809 of the Illinois Vehicle Code,

but excluding other motor vehicles required to be registered

under the Illinois Vehicle Code. Horticultural polyhouses or

hoop houses used for propagating, growing, or overwintering

plants shall be considered farm machinery and equipment under

this item (7). Agricultural chemical tender tanks and dry boxes

shall include units sold separately from a motor vehicle

required to be licensed and units sold mounted on a motor

vehicle required to be licensed if the selling price of the

tender is separately stated.

Farm machinery and equipment shall include precision

farming equipment that is installed or purchased to be

installed on farm machinery and equipment including, but not

limited to, tractors, harvesters, sprayers, planters, seeders,

or spreaders. Precision farming equipment includes, but is not

limited to, soil testing sensors, computers, monitors,

software, global positioning and mapping systems, and other

such equipment.

Farm machinery and equipment also includes computers,

sensors, software, and related equipment used primarily in the

computer-assisted operation of production agriculture

facilities, equipment, and activities such as, but not limited

to, the collection, monitoring, and correlation of animal and

crop data for the purpose of formulating animal diets and

agricultural chemicals. This item (7) is exempt from the

provisions of Section 3-75.

(8) Until June 30, 2013, fuel and petroleum products sold

to or used by an air common carrier, certified by the carrier

to be used for consumption, shipment, or storage in the conduct

of its business as an air common carrier, for a flight destined

for or returning from a location or locations outside the

United States without regard to previous or subsequent domestic

stopovers.

Beginning July 1, 2013, fuel and petroleum products sold to

or used by an air carrier, certified by the carrier to be used

for consumption, shipment, or storage in the conduct of its

business as an air common carrier, for a flight that (i) is

engaged in foreign trade or is engaged in trade between the

United States and any of its possessions and (ii) transports at

least one individual or package for hire from the city of

origination to the city of final destination on the same

aircraft, without regard to a change in the flight number of

that aircraft.

(9) Proceeds of mandatory service charges separately

stated on customers' bills for the purchase and consumption of

food and beverages acquired as an incident to the purchase of a

service from a serviceman, to the extent that the proceeds of

the service charge are in fact turned over as tips or as a

substitute for tips to the employees who participate directly

in preparing, serving, hosting or cleaning up the food or

beverage function with respect to which the service charge is

imposed.

(10) Until July 1, 2003, oil field exploration, drilling,

and production equipment, including (i) rigs and parts of rigs,

rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

tubular goods, including casing and drill strings, (iii) pumps

and pump-jack units, (iv) storage tanks and flow lines, (v) any

individual replacement part for oil field exploration,

drilling, and production equipment, and (vi) machinery and

equipment purchased for lease; but excluding motor vehicles

required to be registered under the Illinois Vehicle Code.

(11) Proceeds from the sale of photoprocessing machinery

and equipment, including repair and replacement parts, both new

and used, including that manufactured on special order,

certified by the purchaser to be used primarily for

photoprocessing, and including photoprocessing machinery and

equipment purchased for lease.

(12) Until July 1, 2023, coal and aggregate exploration,

mining, off-highway hauling, processing, maintenance, and

reclamation equipment, including replacement parts and

equipment, and including equipment purchased for lease, but

excluding motor vehicles required to be registered under the

Illinois Vehicle Code. The changes made to this Section by

Public Act 97-767 apply on and after July 1, 2003, but no claim

for credit or refund is allowed on or after August 16, 2013

(the effective date of Public Act 98-456) for such taxes paid

during the period beginning July 1, 2003 and ending on August

16, 2013 (the effective date of Public Act 98-456).

(13) Semen used for artificial insemination of livestock

for direct agricultural production.

(14) Horses, or interests in horses, registered with and

meeting the requirements of any of the Arabian Horse Club

Registry of America, Appaloosa Horse Club, American Quarter

Horse Association, United States Trotting Association, or

Jockey Club, as appropriate, used for purposes of breeding or

racing for prizes. This item (14) is exempt from the provisions

of Section 3-75, and the exemption provided for under this item

(14) applies for all periods beginning May 30, 1995, but no

claim for credit or refund is allowed on or after January 1,

2008 (the effective date of Public Act 95-88) this amendatory

Act of the 95th General Assembly for such taxes paid during the

period beginning May 30, 2000 and ending on January 1, 2008

(the effective date of Public Act 95-88) this amendatory Act of

the 95th General Assembly.

(15) Computers and communications equipment utilized for

any hospital purpose and equipment used in the diagnosis,

analysis, or treatment of hospital patients purchased by a

lessor who leases the equipment, under a lease of one year or

longer executed or in effect at the time the lessor would

otherwise be subject to the tax imposed by this Act, to a

hospital that has been issued an active tax exemption

identification number by the Department under Section 1g of the

Retailers' Occupation Tax Act. If the equipment is leased in a

manner that does not qualify for this exemption or is used in

any other non-exempt manner, the lessor shall be liable for the

tax imposed under this Act or the Use Tax Act, as the case may

be, based on the fair market value of the property at the time

the non-qualifying use occurs. No lessor shall collect or

attempt to collect an amount (however designated) that purports

to reimburse that lessor for the tax imposed by this Act or the

Use Tax Act, as the case may be, if the tax has not been paid by

the lessor. If a lessor improperly collects any such amount

from the lessee, the lessee shall have a legal right to claim a

refund of that amount from the lessor. If, however, that amount

is not refunded to the lessee for any reason, the lessor is

liable to pay that amount to the Department.

(16) Personal property purchased by a lessor who leases the

property, under a lease of one year or longer executed or in

effect at the time the lessor would otherwise be subject to the

tax imposed by this Act, to a governmental body that has been

issued an active tax exemption identification number by the

Department under Section 1g of the Retailers' Occupation Tax

Act. If the property is leased in a manner that does not

qualify for this exemption or is used in any other non-exempt

manner, the lessor shall be liable for the tax imposed under

this Act or the Use Tax Act, as the case may be, based on the

fair market value of the property at the time the

non-qualifying use occurs. No lessor shall collect or attempt

to collect an amount (however designated) that purports to

reimburse that lessor for the tax imposed by this Act or the

Use Tax Act, as the case may be, if the tax has not been paid by

the lessor. If a lessor improperly collects any such amount

from the lessee, the lessee shall have a legal right to claim a

refund of that amount from the lessor. If, however, that amount

is not refunded to the lessee for any reason, the lessor is

liable to pay that amount to the Department.

(17) Beginning with taxable years ending on or after

December 31, 1995 and ending with taxable years ending on or

before December 31, 2004, personal property that is donated for

disaster relief to be used in a State or federally declared

disaster area in Illinois or bordering Illinois by a

manufacturer or retailer that is registered in this State to a

corporation, society, association, foundation, or institution

that has been issued a sales tax exemption identification

number by the Department that assists victims of the disaster

who reside within the declared disaster area.

(18) Beginning with taxable years ending on or after

December 31, 1995 and ending with taxable years ending on or

before December 31, 2004, personal property that is used in the

performance of infrastructure repairs in this State, including

but not limited to municipal roads and streets, access roads,

bridges, sidewalks, waste disposal systems, water and sewer

line extensions, water distribution and purification

facilities, storm water drainage and retention facilities, and

sewage treatment facilities, resulting from a State or

federally declared disaster in Illinois or bordering Illinois

when such repairs are initiated on facilities located in the

declared disaster area within 6 months after the disaster.

(19) Beginning July 1, 1999, game or game birds purchased

at a "game breeding and hunting preserve area" as that term is

used in the Wildlife Code. This paragraph is exempt from the

provisions of Section 3-75.

(20) A motor vehicle, as that term is defined in Section

1-146 of the Illinois Vehicle Code, that is donated to a

corporation, limited liability company, society, association,

foundation, or institution that is determined by the Department

to be organized and operated exclusively for educational

purposes. For purposes of this exemption, "a corporation,

limited liability company, society, association, foundation,

or institution organized and operated exclusively for

educational purposes" means all tax-supported public schools,

private schools that offer systematic instruction in useful

branches of learning by methods common to public schools and

that compare favorably in their scope and intensity with the

course of study presented in tax-supported schools, and

vocational or technical schools or institutes organized and

operated exclusively to provide a course of study of not less

than 6 weeks duration and designed to prepare individuals to

follow a trade or to pursue a manual, technical, mechanical,

industrial, business, or commercial occupation.

(21) Beginning January 1, 2000, personal property,

including food, purchased through fundraising events for the

benefit of a public or private elementary or secondary school,

a group of those schools, or one or more school districts if

the events are sponsored by an entity recognized by the school

district that consists primarily of volunteers and includes

parents and teachers of the school children. This paragraph

does not apply to fundraising events (i) for the benefit of

private home instruction or (ii) for which the fundraising

entity purchases the personal property sold at the events from

another individual or entity that sold the property for the

purpose of resale by the fundraising entity and that profits

from the sale to the fundraising entity. This paragraph is

exempt from the provisions of Section 3-75.

(22) Beginning January 1, 2000 and through December 31,

2001, new or used automatic vending machines that prepare and

serve hot food and beverages, including coffee, soup, and other

items, and replacement parts for these machines. Beginning

January 1, 2002 and through June 30, 2003, machines and parts

for machines used in commercial, coin-operated amusement and

vending business if a use or occupation tax is paid on the

gross receipts derived from the use of the commercial,

coin-operated amusement and vending machines. This paragraph

is exempt from the provisions of Section 3-75.

(23) Beginning August 23, 2001 and through June 30, 2016,

food for human consumption that is to be consumed off the

premises where it is sold (other than alcoholic beverages, soft

drinks, and food that has been prepared for immediate

consumption) and prescription and nonprescription medicines,

drugs, medical appliances, and insulin, urine testing

materials, syringes, and needles used by diabetics, for human

use, when purchased for use by a person receiving medical

assistance under Article V of the Illinois Public Aid Code who

resides in a licensed long-term care facility, as defined in

the Nursing Home Care Act, or in a licensed facility as defined

in the ID/DD Community Care Act, the MC/DD Act, or the

Specialized Mental Health Rehabilitation Act of 2013.

(24) Beginning on August 2, 2001 (the effective date of

Public Act 92-227) this amendatory Act of the 92nd General

Assembly, computers and communications equipment utilized for

any hospital purpose and equipment used in the diagnosis,

analysis, or treatment of hospital patients purchased by a

lessor who leases the equipment, under a lease of one year or

longer executed or in effect at the time the lessor would

otherwise be subject to the tax imposed by this Act, to a

hospital that has been issued an active tax exemption

identification number by the Department under Section 1g of the

Retailers' Occupation Tax Act. If the equipment is leased in a

manner that does not qualify for this exemption or is used in

any other nonexempt manner, the lessor shall be liable for the

tax imposed under this Act or the Use Tax Act, as the case may

be, based on the fair market value of the property at the time

the nonqualifying use occurs. No lessor shall collect or

attempt to collect an amount (however designated) that purports

to reimburse that lessor for the tax imposed by this Act or the

Use Tax Act, as the case may be, if the tax has not been paid by

the lessor. If a lessor improperly collects any such amount

from the lessee, the lessee shall have a legal right to claim a

refund of that amount from the lessor. If, however, that amount

is not refunded to the lessee for any reason, the lessor is

liable to pay that amount to the Department. This paragraph is

exempt from the provisions of Section 3-75.

(25) Beginning on August 2, 2001 (the effective date of

Public Act 92-227) this amendatory Act of the 92nd General

Assembly, personal property purchased by a lessor who leases

the property, under a lease of one year or longer executed or

in effect at the time the lessor would otherwise be subject to

the tax imposed by this Act, to a governmental body that has

been issued an active tax exemption identification number by

the Department under Section 1g of the Retailers' Occupation

Tax Act. If the property is leased in a manner that does not

qualify for this exemption or is used in any other nonexempt

manner, the lessor shall be liable for the tax imposed under

this Act or the Use Tax Act, as the case may be, based on the

fair market value of the property at the time the nonqualifying

use occurs. No lessor shall collect or attempt to collect an

amount (however designated) that purports to reimburse that

lessor for the tax imposed by this Act or the Use Tax Act, as

the case may be, if the tax has not been paid by the lessor. If

a lessor improperly collects any such amount from the lessee,

the lessee shall have a legal right to claim a refund of that

amount from the lessor. If, however, that amount is not

refunded to the lessee for any reason, the lessor is liable to

pay that amount to the Department. This paragraph is exempt

from the provisions of Section 3-75.

(26) Beginning January 1, 2008, tangible personal property

used in the construction or maintenance of a community water

supply, as defined under Section 3.145 of the Environmental

Protection Act, that is operated by a not-for-profit

corporation that holds a valid water supply permit issued under

Title IV of the Environmental Protection Act. This paragraph is

exempt from the provisions of Section 3-75.

(27) Beginning January 1, 2010, materials, parts,

equipment, components, and furnishings incorporated into or

upon an aircraft as part of the modification, refurbishment,

completion, replacement, repair, or maintenance of the

aircraft. This exemption includes consumable supplies used in

the modification, refurbishment, completion, replacement,

repair, and maintenance of aircraft, but excludes any

materials, parts, equipment, components, and consumable

supplies used in the modification, replacement, repair, and

maintenance of aircraft engines or power plants, whether such

engines or power plants are installed or uninstalled upon any

such aircraft. "Consumable supplies" include, but are not

limited to, adhesive, tape, sandpaper, general purpose

lubricants, cleaning solution, latex gloves, and protective

films. This exemption applies only to the use of qualifying

tangible personal property transferred incident to the

modification, refurbishment, completion, replacement, repair,

or maintenance of aircraft by persons who (i) hold an Air

Agency Certificate and are empowered to operate an approved

repair station by the Federal Aviation Administration, (ii)

have a Class IV Rating, and (iii) conduct operations in

accordance with Part 145 of the Federal Aviation Regulations.

The exemption does not include aircraft operated by a

commercial air carrier providing scheduled passenger air

service pursuant to authority issued under Part 121 or Part 129

of the Federal Aviation Regulations. The changes made to this

paragraph (27) by Public Act 98-534 are declarative of existing

law.

(28) Tangible personal property purchased by a

public-facilities corporation, as described in Section

11-65-10 of the Illinois Municipal Code, for purposes of

constructing or furnishing a municipal convention hall, but

only if the legal title to the municipal convention hall is

transferred to the municipality without any further

consideration by or on behalf of the municipality at the time

of the completion of the municipal convention hall or upon the

retirement or redemption of any bonds or other debt instruments

issued by the public-facilities corporation in connection with

the development of the municipal convention hall. This

exemption includes existing public-facilities corporations as

provided in Section 11-65-25 of the Illinois Municipal Code.

This paragraph is exempt from the provisions of Section 3-75.

(29) Beginning January 1, 2017, menstrual pads, tampons,

and menstrual cups.

(30) Tangible personal property transferred to a purchaser

who is exempt from the tax imposed by this Act by operation of

federal law. This paragraph is exempt from the provisions of

Section 3-75.

(31) Qualified tangible personal property used in the

construction or operation of a data center that has been

granted a certificate of exemption by the Department of

Commerce and Economic Opportunity, whether that tangible

personal property is purchased by the owner, operator, or

tenant of the data center or by a contractor or subcontractor

of the owner, operator, or tenant. Data centers that would have

qualified for a certificate of exemption prior to January 1,

2020 had this amendatory Act of the 101st General Assembly been

in effect, may apply for and obtain an exemption for subsequent

purchases of computer equipment or enabling software purchased

or leased to upgrade, supplement, or replace computer equipment

or enabling software purchased or leased in the original

investment that would have qualified.

The Department of Commerce and Economic Opportunity shall

grant a certificate of exemption under this item (31) to

qualified data centers as defined by Section 605-1025 of the

Department of Commerce and Economic Opportunity Law of the

Civil Administrative Code of Illinois.

For the purposes of this item (31):

"Data center" means a building or a series of buildings

rehabilitated or constructed to house working servers in

one physical location or multiple sites within the State of

Illinois.

"Qualified tangible personal property" means:

electrical systems and equipment; climate control and

chilling equipment and systems; mechanical systems and

equipment; monitoring and secure systems; emergency

generators; hardware; computers; servers; data storage

devices; network connectivity equipment; racks; cabinets;

telecommunications cabling infrastructure; raised floor

systems; peripheral components or systems; software;

mechanical, electrical, or plumbing systems; battery

systems; cooling systems and towers; temperature control

systems; other cabling; and other data center

infrastructure equipment and systems necessary to operate

qualified tangible personal property, including fixtures;

and component parts of any of the foregoing, including

installation, maintenance, repair, refurbishment, and

replacement of qualified tangible personal property to

generate, transform, transmit, distribute, or manage

electricity necessary to operate qualified tangible

personal property; and all other tangible personal

property that is essential to the operations of a computer

data center. The term "qualified tangible personal

property" also includes building materials physically

incorporated in to the qualifying data center. To document

the exemption allowed under this Section, the retailer must

obtain from the purchaser a copy of the certificate of

eligibility issued by the Department of Commerce and

Economic Opportunity.

This item (31) is exempt from the provisions of Section

3-75.

(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;

100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.

1-4-19; revised 1-8-19.)

Section 15-40. The Service Occupation Tax Act is amended by

changing Section 3-5 as follows:

(35 ILCS 115/3-5)

Sec. 3-5. Exemptions. The following tangible personal

property is exempt from the tax imposed by this Act:

(1) Personal property sold by a corporation, society,

association, foundation, institution, or organization, other

than a limited liability company, that is organized and

operated as a not-for-profit service enterprise for the benefit

of persons 65 years of age or older if the personal property

was not purchased by the enterprise for the purpose of resale

by the enterprise.

(2) Personal property purchased by a not-for-profit

Illinois county fair association for use in conducting,

operating, or promoting the county fair.

(3) Personal property purchased by any not-for-profit arts

or cultural organization that establishes, by proof required by

the Department by rule, that it has received an exemption under

Section 501(c)(3) of the Internal Revenue Code and that is

organized and operated primarily for the presentation or

support of arts or cultural programming, activities, or

services. These organizations include, but are not limited to,

music and dramatic arts organizations such as symphony

orchestras and theatrical groups, arts and cultural service

organizations, local arts councils, visual arts organizations,

and media arts organizations. On and after July 1, 2001 (the

effective date of Public Act 92-35) this amendatory Act of the

92nd General Assembly, however, an entity otherwise eligible

for this exemption shall not make tax-free purchases unless it

has an active identification number issued by the Department.

(4) Legal tender, currency, medallions, or gold or silver

coinage issued by the State of Illinois, the government of the

United States of America, or the government of any foreign

country, and bullion.

(5) Until July 1, 2003 and beginning again on September 1,

2004 through August 30, 2014, graphic arts machinery and

equipment, including repair and replacement parts, both new and

used, and including that manufactured on special order or

purchased for lease, certified by the purchaser to be used

primarily for graphic arts production. Equipment includes

chemicals or chemicals acting as catalysts but only if the

chemicals or chemicals acting as catalysts effect a direct and

immediate change upon a graphic arts product. Beginning on July

1, 2017, graphic arts machinery and equipment is included in

the manufacturing and assembling machinery and equipment

exemption under Section 2 of this Act.

(6) Personal property sold by a teacher-sponsored student

organization affiliated with an elementary or secondary school

located in Illinois.

(7) Farm machinery and equipment, both new and used,

including that manufactured on special order, certified by the

purchaser to be used primarily for production agriculture or

State or federal agricultural programs, including individual

replacement parts for the machinery and equipment, including

machinery and equipment purchased for lease, and including

implements of husbandry defined in Section 1-130 of the

Illinois Vehicle Code, farm machinery and agricultural

chemical and fertilizer spreaders, and nurse wagons required to

be registered under Section 3-809 of the Illinois Vehicle Code,

but excluding other motor vehicles required to be registered

under the Illinois Vehicle Code. Horticultural polyhouses or

hoop houses used for propagating, growing, or overwintering

plants shall be considered farm machinery and equipment under

this item (7). Agricultural chemical tender tanks and dry boxes

shall include units sold separately from a motor vehicle

required to be licensed and units sold mounted on a motor

vehicle required to be licensed if the selling price of the

tender is separately stated.

Farm machinery and equipment shall include precision

farming equipment that is installed or purchased to be

installed on farm machinery and equipment including, but not

limited to, tractors, harvesters, sprayers, planters, seeders,

or spreaders. Precision farming equipment includes, but is not

limited to, soil testing sensors, computers, monitors,

software, global positioning and mapping systems, and other

such equipment.

Farm machinery and equipment also includes computers,

sensors, software, and related equipment used primarily in the

computer-assisted operation of production agriculture

facilities, equipment, and activities such as, but not limited

to, the collection, monitoring, and correlation of animal and

crop data for the purpose of formulating animal diets and

agricultural chemicals. This item (7) is exempt from the

provisions of Section 3-55.

(8) Until June 30, 2013, fuel and petroleum products sold

to or used by an air common carrier, certified by the carrier

to be used for consumption, shipment, or storage in the conduct

of its business as an air common carrier, for a flight destined

for or returning from a location or locations outside the

United States without regard to previous or subsequent domestic

stopovers.

Beginning July 1, 2013, fuel and petroleum products sold to

or used by an air carrier, certified by the carrier to be used

for consumption, shipment, or storage in the conduct of its

business as an air common carrier, for a flight that (i) is

engaged in foreign trade or is engaged in trade between the

United States and any of its possessions and (ii) transports at

least one individual or package for hire from the city of

origination to the city of final destination on the same

aircraft, without regard to a change in the flight number of

that aircraft.

(9) Proceeds of mandatory service charges separately

stated on customers' bills for the purchase and consumption of

food and beverages, to the extent that the proceeds of the

service charge are in fact turned over as tips or as a

substitute for tips to the employees who participate directly

in preparing, serving, hosting or cleaning up the food or

beverage function with respect to which the service charge is

imposed.

(10) Until July 1, 2003, oil field exploration, drilling,

and production equipment, including (i) rigs and parts of rigs,

rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

tubular goods, including casing and drill strings, (iii) pumps

and pump-jack units, (iv) storage tanks and flow lines, (v) any

individual replacement part for oil field exploration,

drilling, and production equipment, and (vi) machinery and

equipment purchased for lease; but excluding motor vehicles

required to be registered under the Illinois Vehicle Code.

(11) Photoprocessing machinery and equipment, including

repair and replacement parts, both new and used, including that

manufactured on special order, certified by the purchaser to be

used primarily for photoprocessing, and including

photoprocessing machinery and equipment purchased for lease.

(12) Until July 1, 2023, coal and aggregate exploration,

mining, off-highway hauling, processing, maintenance, and

reclamation equipment, including replacement parts and

equipment, and including equipment purchased for lease, but

excluding motor vehicles required to be registered under the

Illinois Vehicle Code. The changes made to this Section by

Public Act 97-767 apply on and after July 1, 2003, but no claim

for credit or refund is allowed on or after August 16, 2013

(the effective date of Public Act 98-456) for such taxes paid

during the period beginning July 1, 2003 and ending on August

16, 2013 (the effective date of Public Act 98-456).

(13) Beginning January 1, 1992 and through June 30, 2016,

food for human consumption that is to be consumed off the

premises where it is sold (other than alcoholic beverages, soft

drinks and food that has been prepared for immediate

consumption) and prescription and non-prescription medicines,

drugs, medical appliances, and insulin, urine testing

materials, syringes, and needles used by diabetics, for human

use, when purchased for use by a person receiving medical

assistance under Article V of the Illinois Public Aid Code who

resides in a licensed long-term care facility, as defined in

the Nursing Home Care Act, or in a licensed facility as defined

in the ID/DD Community Care Act, the MC/DD Act, or the

Specialized Mental Health Rehabilitation Act of 2013.

(14) Semen used for artificial insemination of livestock

for direct agricultural production.

(15) Horses, or interests in horses, registered with and

meeting the requirements of any of the Arabian Horse Club

Registry of America, Appaloosa Horse Club, American Quarter

Horse Association, United States Trotting Association, or

Jockey Club, as appropriate, used for purposes of breeding or

racing for prizes. This item (15) is exempt from the provisions

of Section 3-55, and the exemption provided for under this item

(15) applies for all periods beginning May 30, 1995, but no

claim for credit or refund is allowed on or after January 1,

2008 (the effective date of Public Act 95-88) for such taxes

paid during the period beginning May 30, 2000 and ending on

January 1, 2008 (the effective date of Public Act 95-88).

(16) Computers and communications equipment utilized for

any hospital purpose and equipment used in the diagnosis,

analysis, or treatment of hospital patients sold to a lessor

who leases the equipment, under a lease of one year or longer

executed or in effect at the time of the purchase, to a

hospital that has been issued an active tax exemption

identification number by the Department under Section 1g of the

Retailers' Occupation Tax Act.

(17) Personal property sold to a lessor who leases the

property, under a lease of one year or longer executed or in

effect at the time of the purchase, to a governmental body that

has been issued an active tax exemption identification number

by the Department under Section 1g of the Retailers' Occupation

Tax Act.

(18) Beginning with taxable years ending on or after

December 31, 1995 and ending with taxable years ending on or

before December 31, 2004, personal property that is donated for

disaster relief to be used in a State or federally declared

disaster area in Illinois or bordering Illinois by a

manufacturer or retailer that is registered in this State to a

corporation, society, association, foundation, or institution

that has been issued a sales tax exemption identification

number by the Department that assists victims of the disaster

who reside within the declared disaster area.

(19) Beginning with taxable years ending on or after

December 31, 1995 and ending with taxable years ending on or

before December 31, 2004, personal property that is used in the

performance of infrastructure repairs in this State, including

but not limited to municipal roads and streets, access roads,

bridges, sidewalks, waste disposal systems, water and sewer

line extensions, water distribution and purification

facilities, storm water drainage and retention facilities, and

sewage treatment facilities, resulting from a State or

federally declared disaster in Illinois or bordering Illinois

when such repairs are initiated on facilities located in the

declared disaster area within 6 months after the disaster.

(20) Beginning July 1, 1999, game or game birds sold at a

"game breeding and hunting preserve area" as that term is used

in the Wildlife Code. This paragraph is exempt from the

provisions of Section 3-55.

(21) A motor vehicle, as that term is defined in Section

1-146 of the Illinois Vehicle Code, that is donated to a

corporation, limited liability company, society, association,

foundation, or institution that is determined by the Department

to be organized and operated exclusively for educational

purposes. For purposes of this exemption, "a corporation,

limited liability company, society, association, foundation,

or institution organized and operated exclusively for

educational purposes" means all tax-supported public schools,

private schools that offer systematic instruction in useful

branches of learning by methods common to public schools and

that compare favorably in their scope and intensity with the

course of study presented in tax-supported schools, and

vocational or technical schools or institutes organized and

operated exclusively to provide a course of study of not less

than 6 weeks duration and designed to prepare individuals to

follow a trade or to pursue a manual, technical, mechanical,

industrial, business, or commercial occupation.

(22) Beginning January 1, 2000, personal property,

including food, purchased through fundraising events for the

benefit of a public or private elementary or secondary school,

a group of those schools, or one or more school districts if

the events are sponsored by an entity recognized by the school

district that consists primarily of volunteers and includes

parents and teachers of the school children. This paragraph

does not apply to fundraising events (i) for the benefit of

private home instruction or (ii) for which the fundraising

entity purchases the personal property sold at the events from

another individual or entity that sold the property for the

purpose of resale by the fundraising entity and that profits

from the sale to the fundraising entity. This paragraph is

exempt from the provisions of Section 3-55.

(23) Beginning January 1, 2000 and through December 31,

2001, new or used automatic vending machines that prepare and

serve hot food and beverages, including coffee, soup, and other

items, and replacement parts for these machines. Beginning

January 1, 2002 and through June 30, 2003, machines and parts

for machines used in commercial, coin-operated amusement and

vending business if a use or occupation tax is paid on the

gross receipts derived from the use of the commercial,

coin-operated amusement and vending machines. This paragraph

is exempt from the provisions of Section 3-55.

(24) Beginning on August 2, 2001 (the effective date of

Public Act 92-227) this amendatory Act of the 92nd General

Assembly, computers and communications equipment utilized for

any hospital purpose and equipment used in the diagnosis,

analysis, or treatment of hospital patients sold to a lessor

who leases the equipment, under a lease of one year or longer

executed or in effect at the time of the purchase, to a

hospital that has been issued an active tax exemption

identification number by the Department under Section 1g of the

Retailers' Occupation Tax Act. This paragraph is exempt from

the provisions of Section 3-55.

(25) Beginning on August 2, 2001 (the effective date of

Public Act 92-227) this amendatory Act of the 92nd General

Assembly, personal property sold to a lessor who leases the

property, under a lease of one year or longer executed or in

effect at the time of the purchase, to a governmental body that

has been issued an active tax exemption identification number

by the Department under Section 1g of the Retailers' Occupation

Tax Act. This paragraph is exempt from the provisions of

Section 3-55.

(26) Beginning on January 1, 2002 and through June 30,

2016, tangible personal property purchased from an Illinois

retailer by a taxpayer engaged in centralized purchasing

activities in Illinois who will, upon receipt of the property

in Illinois, temporarily store the property in Illinois (i) for

the purpose of subsequently transporting it outside this State

for use or consumption thereafter solely outside this State or

(ii) for the purpose of being processed, fabricated, or

manufactured into, attached to, or incorporated into other

tangible personal property to be transported outside this State

and thereafter used or consumed solely outside this State. The

Director of Revenue shall, pursuant to rules adopted in

accordance with the Illinois Administrative Procedure Act,

issue a permit to any taxpayer in good standing with the

Department who is eligible for the exemption under this

paragraph (26). The permit issued under this paragraph (26)

shall authorize the holder, to the extent and in the manner

specified in the rules adopted under this Act, to purchase

tangible personal property from a retailer exempt from the

taxes imposed by this Act. Taxpayers shall maintain all

necessary books and records to substantiate the use and

consumption of all such tangible personal property outside of

the State of Illinois.

(27) Beginning January 1, 2008, tangible personal property

used in the construction or maintenance of a community water

supply, as defined under Section 3.145 of the Environmental

Protection Act, that is operated by a not-for-profit

corporation that holds a valid water supply permit issued under

Title IV of the Environmental Protection Act. This paragraph is

exempt from the provisions of Section 3-55.

(28) Tangible personal property sold to a

public-facilities corporation, as described in Section

11-65-10 of the Illinois Municipal Code, for purposes of

constructing or furnishing a municipal convention hall, but

only if the legal title to the municipal convention hall is

transferred to the municipality without any further

consideration by or on behalf of the municipality at the time

of the completion of the municipal convention hall or upon the

retirement or redemption of any bonds or other debt instruments

issued by the public-facilities corporation in connection with

the development of the municipal convention hall. This

exemption includes existing public-facilities corporations as

provided in Section 11-65-25 of the Illinois Municipal Code.

This paragraph is exempt from the provisions of Section 3-55.

(29) Beginning January 1, 2010, materials, parts,

equipment, components, and furnishings incorporated into or

upon an aircraft as part of the modification, refurbishment,

completion, replacement, repair, or maintenance of the

aircraft. This exemption includes consumable supplies used in

the modification, refurbishment, completion, replacement,

repair, and maintenance of aircraft, but excludes any

materials, parts, equipment, components, and consumable

supplies used in the modification, replacement, repair, and

maintenance of aircraft engines or power plants, whether such

engines or power plants are installed or uninstalled upon any

such aircraft. "Consumable supplies" include, but are not

limited to, adhesive, tape, sandpaper, general purpose

lubricants, cleaning solution, latex gloves, and protective

films. This exemption applies only to the transfer of

qualifying tangible personal property incident to the

modification, refurbishment, completion, replacement, repair,

or maintenance of an aircraft by persons who (i) hold an Air

Agency Certificate and are empowered to operate an approved

repair station by the Federal Aviation Administration, (ii)

have a Class IV Rating, and (iii) conduct operations in

accordance with Part 145 of the Federal Aviation Regulations.

The exemption does not include aircraft operated by a

commercial air carrier providing scheduled passenger air

service pursuant to authority issued under Part 121 or Part 129

of the Federal Aviation Regulations. The changes made to this

paragraph (29) by Public Act 98-534 are declarative of existing

law.

(30) Beginning January 1, 2017, menstrual pads, tampons,

and menstrual cups.

(31) Tangible personal property transferred to a purchaser

who is exempt from tax by operation of federal law. This

paragraph is exempt from the provisions of Section 3-55.

(32) Qualified tangible personal property used in the

construction or operation of a data center that has been

granted a certificate of exemption by the Department of

Commerce and Economic Opportunity, whether that tangible

personal property is purchased by the owner, operator, or

tenant of the data center or by a contractor or subcontractor

of the owner, operator, or tenant. Data centers that would have

qualified for a certificate of exemption prior to January 1,

2020 had this amendatory Act of the 101st General Assembly been

in effect, may apply for and obtain an exemption for subsequent

purchases of computer equipment or enabling software purchased

or leased to upgrade, supplement, or replace computer equipment

or enabling software purchased or leased in the original

investment that would have qualified.

The Department of Commerce and Economic Opportunity shall

grant a certificate of exemption under this item (32) to

qualified data centers as defined by Section 605-1025 of the

Department of Commerce and Economic Opportunity Law of the

Civil Administrative Code of Illinois.

For the purposes of this item (32):

"Data center" means a building or a series of buildings

rehabilitated or constructed to house working servers in

one physical location or multiple sites within the State of

Illinois.

"Qualified tangible personal property" means:

electrical systems and equipment; climate control and

chilling equipment and systems; mechanical systems and

equipment; monitoring and secure systems; emergency

generators; hardware; computers; servers; data storage

devices; network connectivity equipment; racks; cabinets;

telecommunications cabling infrastructure; raised floor

systems; peripheral components or systems; software;

mechanical, electrical, or plumbing systems; battery

systems; cooling systems and towers; temperature control

systems; other cabling; and other data center

infrastructure equipment and systems necessary to operate

qualified tangible personal property, including fixtures;

and component parts of any of the foregoing, including

installation, maintenance, repair, refurbishment, and

replacement of qualified tangible personal property to

generate, transform, transmit, distribute, or manage

electricity necessary to operate qualified tangible

personal property; and all other tangible personal

property that is essential to the operations of a computer

data center. The term "qualified tangible personal

property" also includes building materials physically

incorporated in to the qualifying data center. To document

the exemption allowed under this Section, the retailer must

obtain from the purchaser a copy of the certificate of

eligibility issued by the Department of Commerce and

Economic Opportunity.

This item (32) is exempt from the provisions of Section

3-55.

(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;

100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.

1-4-19; revised 1-8-19.)

Section 15-45. The Retailers' Occupation Tax Act is amended

by changing Sections 1, 2, 2-5, 2-12, and 2a as follows:

(35 ILCS 120/1) (from Ch. 120, par. 440)

Sec. 1. Definitions. "Sale at retail" means any transfer of

the ownership of or title to tangible personal property to a

purchaser, for the purpose of use or consumption, and not for

the purpose of resale in any form as tangible personal property

to the extent not first subjected to a use for which it was

purchased, for a valuable consideration: Provided that the

property purchased is deemed to be purchased for the purpose of

resale, despite first being used, to the extent to which it is

resold as an ingredient of an intentionally produced product or

byproduct of manufacturing. For this purpose, slag produced as

an incident to manufacturing pig iron or steel and sold is

considered to be an intentionally produced byproduct of

manufacturing. Transactions whereby the possession of the

property is transferred but the seller retains the title as

security for payment of the selling price shall be deemed to be

sales.

"Sale at retail" shall be construed to include any transfer

of the ownership of or title to tangible personal property to a

purchaser, for use or consumption by any other person to whom

such purchaser may transfer the tangible personal property

without a valuable consideration, and to include any transfer,

whether made for or without a valuable consideration, for

resale in any form as tangible personal property unless made in

compliance with Section 2c of this Act.

Sales of tangible personal property, which property, to the

extent not first subjected to a use for which it was purchased,

as an ingredient or constituent, goes into and forms a part of

tangible personal property subsequently the subject of a "Sale

at retail", are not sales at retail as defined in this Act:

Provided that the property purchased is deemed to be purchased

for the purpose of resale, despite first being used, to the

extent to which it is resold as an ingredient of an

intentionally produced product or byproduct of manufacturing.

"Sale at retail" shall be construed to include any Illinois

florist's sales transaction in which the purchase order is

received in Illinois by a florist and the sale is for use or

consumption, but the Illinois florist has a florist in another

state deliver the property to the purchaser or the purchaser's

donee in such other state.

Nonreusable tangible personal property that is used by

persons engaged in the business of operating a restaurant,

cafeteria, or drive-in is a sale for resale when it is

transferred to customers in the ordinary course of business as

part of the sale of food or beverages and is used to deliver,

package, or consume food or beverages, regardless of where

consumption of the food or beverages occurs. Examples of those

items include, but are not limited to nonreusable, paper and

plastic cups, plates, baskets, boxes, sleeves, buckets or other

containers, utensils, straws, placemats, napkins, doggie bags,

and wrapping or packaging materials that are transferred to

customers as part of the sale of food or beverages in the

ordinary course of business.

The purchase, employment and transfer of such tangible

personal property as newsprint and ink for the primary purpose

of conveying news (with or without other information) is not a

purchase, use or sale of tangible personal property.

A person whose activities are organized and conducted

primarily as a not-for-profit service enterprise, and who

engages in selling tangible personal property at retail

(whether to the public or merely to members and their guests)

is engaged in the business of selling tangible personal

property at retail with respect to such transactions, excepting

only a person organized and operated exclusively for

charitable, religious or educational purposes either (1), to

the extent of sales by such person to its members, students,

patients or inmates of tangible personal property to be used

primarily for the purposes of such person, or (2), to the

extent of sales by such person of tangible personal property

which is not sold or offered for sale by persons organized for

profit. The selling of school books and school supplies by

schools at retail to students is not "primarily for the

purposes of" the school which does such selling. The provisions

of this paragraph shall not apply to nor subject to taxation

occasional dinners, socials or similar activities of a person

organized and operated exclusively for charitable, religious

or educational purposes, whether or not such activities are

open to the public.

A person who is the recipient of a grant or contract under

Title VII of the Older Americans Act of 1965 (P.L. 92-258) and

serves meals to participants in the federal Nutrition Program

for the Elderly in return for contributions established in

amount by the individual participant pursuant to a schedule of

suggested fees as provided for in the federal Act is not

engaged in the business of selling tangible personal property

at retail with respect to such transactions.

"Purchaser" means anyone who, through a sale at retail,

acquires the ownership of or title to tangible personal

property for a valuable consideration.

"Reseller of motor fuel" means any person engaged in the

business of selling or delivering or transferring title of

motor fuel to another person other than for use or consumption.

No person shall act as a reseller of motor fuel within this

State without first being registered as a reseller pursuant to

Section 2c or a retailer pursuant to Section 2a.

"Selling price" or the "amount of sale" means the

consideration for a sale valued in money whether received in

money or otherwise, including cash, credits, property, other

than as hereinafter provided, and services, but, prior to

January 1, 2020, not including the value of or credit given for

traded-in tangible personal property where the item that is

traded-in is of like kind and character as that which is being

sold; beginning January 1, 2020, "selling price" includes the

portion of the value of or credit given for traded-in motor

vehicles of the First Division as defined in Section 1-146 of

the Illinois Vehicle Code of like kind and character as that

which is being sold that exceeds $10,000. "Selling price" , and

shall be determined without any deduction on account of the

cost of the property sold, the cost of materials used, labor or

service cost or any other expense whatsoever, but does not

include charges that are added to prices by sellers on account

of the seller's tax liability under this Act, or on account of

the seller's duty to collect, from the purchaser, the tax that

is imposed by the Use Tax Act, or, except as otherwise provided

with respect to any cigarette tax imposed by a home rule unit,

on account of the seller's tax liability under any local

occupation tax administered by the Department, or, except as

otherwise provided with respect to any cigarette tax imposed by

a home rule unit on account of the seller's duty to collect,

from the purchasers, the tax that is imposed under any local

use tax administered by the Department. Effective December 1,

1985, "selling price" shall include charges that are added to

prices by sellers on account of the seller's tax liability

under the Cigarette Tax Act, on account of the sellers' duty to

collect, from the purchaser, the tax imposed under the

Cigarette Use Tax Act, and on account of the seller's duty to

collect, from the purchaser, any cigarette tax imposed by a

home rule unit.

Notwithstanding any law to the contrary, for any motor

vehicle, as defined in Section 1-146 of the Vehicle Code, that

is sold on or after January 1, 2015 for the purpose of leasing

the vehicle for a defined period that is longer than one year

and (1) is a motor vehicle of the second division that: (A) is

a self-contained motor vehicle designed or permanently

converted to provide living quarters for recreational,

camping, or travel use, with direct walk through access to the

living quarters from the driver's seat; (B) is of the van

configuration designed for the transportation of not less than

7 nor more than 16 passengers; or (C) has a gross vehicle

weight rating of 8,000 pounds or less or (2) is a motor vehicle

of the first division, "selling price" or "amount of sale"

means the consideration received by the lessor pursuant to the

lease contract, including amounts due at lease signing and all

monthly or other regular payments charged over the term of the

lease. Also included in the selling price is any amount

received by the lessor from the lessee for the leased vehicle

that is not calculated at the time the lease is executed,

including, but not limited to, excess mileage charges and

charges for excess wear and tear. For sales that occur in

Illinois, with respect to any amount received by the lessor

from the lessee for the leased vehicle that is not calculated

at the time the lease is executed, the lessor who purchased the

motor vehicle does not incur the tax imposed by the Use Tax Act

on those amounts, and the retailer who makes the retail sale of

the motor vehicle to the lessor is not required to collect the

tax imposed by the Use Tax Act or to pay the tax imposed by this

Act on those amounts. However, the lessor who purchased the

motor vehicle assumes the liability for reporting and paying

the tax on those amounts directly to the Department in the same

form (Illinois Retailers' Occupation Tax, and local retailers'

occupation taxes, if applicable) in which the retailer would

have reported and paid such tax if the retailer had accounted

for the tax to the Department. For amounts received by the

lessor from the lessee that are not calculated at the time the

lease is executed, the lessor must file the return and pay the

tax to the Department by the due date otherwise required by

this Act for returns other than transaction returns. If the

retailer is entitled under this Act to a discount for

collecting and remitting the tax imposed under this Act to the

Department with respect to the sale of the motor vehicle to the

lessor, then the right to the discount provided in this Act

shall be transferred to the lessor with respect to the tax paid

by the lessor for any amount received by the lessor from the

lessee for the leased vehicle that is not calculated at the

time the lease is executed; provided that the discount is only

allowed if the return is timely filed and for amounts timely

paid. The "selling price" of a motor vehicle that is sold on or

after January 1, 2015 for the purpose of leasing for a defined

period of longer than one year shall not be reduced by the

value of or credit given for traded-in tangible personal

property owned by the lessor, nor shall it be reduced by the

value of or credit given for traded-in tangible personal

property owned by the lessee, regardless of whether the

trade-in value thereof is assigned by the lessee to the lessor.

In the case of a motor vehicle that is sold for the purpose of

leasing for a defined period of longer than one year, the sale

occurs at the time of the delivery of the vehicle, regardless

of the due date of any lease payments. A lessor who incurs a

Retailers' Occupation Tax liability on the sale of a motor

vehicle coming off lease may not take a credit against that

liability for the Use Tax the lessor paid upon the purchase of

the motor vehicle (or for any tax the lessor paid with respect

to any amount received by the lessor from the lessee for the

leased vehicle that was not calculated at the time the lease

was executed) if the selling price of the motor vehicle at the

time of purchase was calculated using the definition of

"selling price" as defined in this paragraph. Notwithstanding

any other provision of this Act to the contrary, lessors shall

file all returns and make all payments required under this

paragraph to the Department by electronic means in the manner

and form as required by the Department. This paragraph does not

apply to leases of motor vehicles for which, at the time the

lease is entered into, the term of the lease is not a defined

period, including leases with a defined initial period with the

option to continue the lease on a month-to-month or other basis

beyond the initial defined period.

The phrase "like kind and character" shall be liberally

construed (including but not limited to any form of motor

vehicle for any form of motor vehicle, or any kind of farm or

agricultural implement for any other kind of farm or

agricultural implement), while not including a kind of item

which, if sold at retail by that retailer, would be exempt from

retailers' occupation tax and use tax as an isolated or

occasional sale.

"Gross receipts" from the sales of tangible personal

property at retail means the total selling price or the amount

of such sales, as hereinbefore defined. In the case of charge

and time sales, the amount thereof shall be included only as

and when payments are received by the seller. Receipts or other

consideration derived by a seller from the sale, transfer or

assignment of accounts receivable to a wholly owned subsidiary

will not be deemed payments prior to the time the purchaser

makes payment on such accounts.

"Department" means the Department of Revenue.

"Person" means any natural individual, firm, partnership,

association, joint stock company, joint adventure, public or

private corporation, limited liability company, or a receiver,

executor, trustee, guardian or other representative appointed

by order of any court.

The isolated or occasional sale of tangible personal

property at retail by a person who does not hold himself out as

being engaged (or who does not habitually engage) in selling

such tangible personal property at retail, or a sale through a

bulk vending machine, does not constitute engaging in a

business of selling such tangible personal property at retail

within the meaning of this Act; provided that any person who is

engaged in a business which is not subject to the tax imposed

by this Act because of involving the sale of or a contract to

sell real estate or a construction contract to improve real

estate or a construction contract to engineer, install, and

maintain an integrated system of products, but who, in the

course of conducting such business, transfers tangible

personal property to users or consumers in the finished form in

which it was purchased, and which does not become real estate

or was not engineered and installed, under any provision of a

construction contract or real estate sale or real estate sales

agreement entered into with some other person arising out of or

because of such nontaxable business, is engaged in the business

of selling tangible personal property at retail to the extent

of the value of the tangible personal property so transferred.

If, in such a transaction, a separate charge is made for the

tangible personal property so transferred, the value of such

property, for the purpose of this Act, shall be the amount so

separately charged, but not less than the cost of such property

to the transferor; if no separate charge is made, the value of

such property, for the purposes of this Act, is the cost to the

transferor of such tangible personal property. Construction

contracts for the improvement of real estate consisting of

engineering, installation, and maintenance of voice, data,

video, security, and all telecommunication systems do not

constitute engaging in a business of selling tangible personal

property at retail within the meaning of this Act if they are

sold at one specified contract price.

A person who holds himself or herself out as being engaged

(or who habitually engages) in selling tangible personal

property at retail is a person engaged in the business of

selling tangible personal property at retail hereunder with

respect to such sales (and not primarily in a service

occupation) notwithstanding the fact that such person designs

and produces such tangible personal property on special order

for the purchaser and in such a way as to render the property

of value only to such purchaser, if such tangible personal

property so produced on special order serves substantially the

same function as stock or standard items of tangible personal

property that are sold at retail.

Persons who engage in the business of transferring tangible

personal property upon the redemption of trading stamps are

engaged in the business of selling such property at retail and

shall be liable for and shall pay the tax imposed by this Act

on the basis of the retail value of the property transferred

upon redemption of such stamps.

"Bulk vending machine" means a vending machine, containing

unsorted confections, nuts, toys, or other items designed

primarily to be used or played with by children which, when a

coin or coins of a denomination not larger than $0.50 are

inserted, are dispensed in equal portions, at random and

without selection by the customer.

"Remote retailer" means a retailer located outside of this

State that does not maintain within this State, directly or by

a subsidiary, an office, distribution house, sales house,

warehouse or other place of business, or any agent or other

representative operating within this State under the authority

of the retailer or its subsidiary, irrespective of whether such

place of business or agent is located here permanently or

temporarily or whether such retailer or subsidiary is licensed

to do business in this State.

(Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)

(35 ILCS 120/2) (from Ch. 120, par. 441)

Sec. 2. Tax imposed.

(a) A tax is imposed upon persons engaged in the business

of selling at retail tangible personal property, including

computer software, and including photographs, negatives, and

positives that are the product of photoprocessing, but not

including products of photoprocessing produced for use in

motion pictures for public commercial exhibition. Beginning

January 1, 2001, prepaid telephone calling arrangements shall

be considered tangible personal property subject to the tax

imposed under this Act regardless of the form in which those

arrangements may be embodied, transmitted, or fixed by any

method now known or hereafter developed. Sales of (1)

electricity delivered to customers by wire; (2) natural or

artificial gas that is delivered to customers through pipes,

pipelines, or mains; and (3) water that is delivered to

customers through pipes, pipelines, or mains are not subject to

tax under this Act. The provisions of this amendatory Act of

the 98th General Assembly are declaratory of existing law as to

the meaning and scope of this Act.

(b) Beginning on July 1, 2020, a remote retailer is engaged

in the occupation of selling at retail in Illinois for purposes

of this Act, if:

(1) the cumulative gross receipts from sales of

tangible personal property to purchasers in Illinois are

$100,000 or more; or

(2) the retailer enters into 200 or more separate

transactions for the sale of tangible personal property to

purchasers in Illinois.

Remote retailers that meet or exceed the threshold in

either paragraph (1) or (2) above shall be liable for all

applicable State and locally imposed retailers' occupation

taxes on all retail sales to Illinois purchasers.

The remote retailer shall determine on a quarterly basis,

ending on the last day of March, June, September, and December,

whether he or she meets the criteria of either paragraph (1) or

(2) of this subsection for the preceding 12-month period. If

the retailer meets the criteria of either paragraph (1) or (2)

for a 12-month period, he or she is considered a retailer

maintaining a place of business in this State and is required

to collect and remit the tax imposed under this Act and all

retailers' occupation tax imposed by local taxing

jurisdictions in Illinois, provided such local taxes are

administered by the Department, and to file all applicable

returns for one year. At the end of that one-year period, the

retailer shall determine whether the retailer met the criteria

of either paragraph (1) or (2) for the preceding 12-month

period. If the retailer met the criteria in either paragraph

(1) or (2) for the preceding 12-month period, he or she is

considered a retailer maintaining a place of business in this

State and is required to collect and remit all applicable State

and local retailers' occupation taxes and file returns for the

subsequent year. If, at the end of a one-year period, a

retailer that was required to collect and remit the tax imposed

under this Act determines that he or she did not meet the

criteria in either paragraph (1) or (2) during the preceding

12-month period, then the retailer shall subsequently

determine on a quarterly basis, ending on the last day of

March, June, September, and December, whether he or she meets

the criteria of either paragraph (1) or (2) for the preceding

12-month period.

(Source: P.A. 98-583, eff. 1-1-14.)

(35 ILCS 120/2-5)

Sec. 2-5. Exemptions. Gross receipts from proceeds from the

sale of the following tangible personal property are exempt

from the tax imposed by this Act:

(1) Farm chemicals.

(2) Farm machinery and equipment, both new and used,

including that manufactured on special order, certified by

the purchaser to be used primarily for production

agriculture or State or federal agricultural programs,

including individual replacement parts for the machinery

and equipment, including machinery and equipment purchased

for lease, and including implements of husbandry defined in

Section 1-130 of the Illinois Vehicle Code, farm machinery

and agricultural chemical and fertilizer spreaders, and

nurse wagons required to be registered under Section 3-809

of the Illinois Vehicle Code, but excluding other motor

vehicles required to be registered under the Illinois

Vehicle Code. Horticultural polyhouses or hoop houses used

for propagating, growing, or overwintering plants shall be

considered farm machinery and equipment under this item

(2). Agricultural chemical tender tanks and dry boxes shall

include units sold separately from a motor vehicle required

to be licensed and units sold mounted on a motor vehicle

required to be licensed, if the selling price of the tender

is separately stated.

Farm machinery and equipment shall include precision

farming equipment that is installed or purchased to be

installed on farm machinery and equipment including, but

not limited to, tractors, harvesters, sprayers, planters,

seeders, or spreaders. Precision farming equipment

includes, but is not limited to, soil testing sensors,

computers, monitors, software, global positioning and

mapping systems, and other such equipment.

Farm machinery and equipment also includes computers,

sensors, software, and related equipment used primarily in

the computer-assisted operation of production agriculture

facilities, equipment, and activities such as, but not

limited to, the collection, monitoring, and correlation of

animal and crop data for the purpose of formulating animal

diets and agricultural chemicals. This item (2) is exempt

from the provisions of Section 2-70.

(3) Until July 1, 2003, distillation machinery and

equipment, sold as a unit or kit, assembled or installed by

the retailer, certified by the user to be used only for the

production of ethyl alcohol that will be used for

consumption as motor fuel or as a component of motor fuel

for the personal use of the user, and not subject to sale

or resale.

(4) Until July 1, 2003 and beginning again September 1,

2004 through August 30, 2014, graphic arts machinery and

equipment, including repair and replacement parts, both

new and used, and including that manufactured on special

order or purchased for lease, certified by the purchaser to

be used primarily for graphic arts production. Equipment

includes chemicals or chemicals acting as catalysts but

only if the chemicals or chemicals acting as catalysts

effect a direct and immediate change upon a graphic arts

product. Beginning on July 1, 2017, graphic arts machinery

and equipment is included in the manufacturing and

assembling machinery and equipment exemption under

paragraph (14).

(5) A motor vehicle that is used for automobile

renting, as defined in the Automobile Renting Occupation

and Use Tax Act. This paragraph is exempt from the

provisions of Section 2-70.

(6) Personal property sold by a teacher-sponsored

student organization affiliated with an elementary or

secondary school located in Illinois.

(7) Until July 1, 2003, proceeds of that portion of the

selling price of a passenger car the sale of which is

subject to the Replacement Vehicle Tax.

(8) Personal property sold to an Illinois county fair

association for use in conducting, operating, or promoting

the county fair.

(9) Personal property sold to a not-for-profit arts or

cultural organization that establishes, by proof required

by the Department by rule, that it has received an

exemption under Section 501(c)(3) of the Internal Revenue

Code and that is organized and operated primarily for the

presentation or support of arts or cultural programming,

activities, or services. These organizations include, but

are not limited to, music and dramatic arts organizations

such as symphony orchestras and theatrical groups, arts and

cultural service organizations, local arts councils,

visual arts organizations, and media arts organizations.

On and after July 1, 2001 (the effective date of Public Act

92-35), however, an entity otherwise eligible for this

exemption shall not make tax-free purchases unless it has

an active identification number issued by the Department.

(10) Personal property sold by a corporation, society,

association, foundation, institution, or organization,

other than a limited liability company, that is organized

and operated as a not-for-profit service enterprise for the

benefit of persons 65 years of age or older if the personal

property was not purchased by the enterprise for the

purpose of resale by the enterprise.

(11) Personal property sold to a governmental body, to

a corporation, society, association, foundation, or

institution organized and operated exclusively for

charitable, religious, or educational purposes, or to a

not-for-profit corporation, society, association,

foundation, institution, or organization that has no

compensated officers or employees and that is organized and

operated primarily for the recreation of persons 55 years

of age or older. A limited liability company may qualify

for the exemption under this paragraph only if the limited

liability company is organized and operated exclusively

for educational purposes. On and after July 1, 1987,

however, no entity otherwise eligible for this exemption

shall make tax-free purchases unless it has an active

identification number issued by the Department.

(12) (Blank).

(12-5) On and after July 1, 2003 and through June 30,

2004, motor vehicles of the second division with a gross

vehicle weight in excess of 8,000 pounds that are subject

to the commercial distribution fee imposed under Section

3-815.1 of the Illinois Vehicle Code. Beginning on July 1,

2004 and through June 30, 2005, the use in this State of

motor vehicles of the second division: (i) with a gross

vehicle weight rating in excess of 8,000 pounds; (ii) that

are subject to the commercial distribution fee imposed

under Section 3-815.1 of the Illinois Vehicle Code; and

(iii) that are primarily used for commercial purposes.

Through June 30, 2005, this exemption applies to repair and

replacement parts added after the initial purchase of such

a motor vehicle if that motor vehicle is used in a manner

that would qualify for the rolling stock exemption

otherwise provided for in this Act. For purposes of this

paragraph, "used for commercial purposes" means the

transportation of persons or property in furtherance of any

commercial or industrial enterprise whether for-hire or

not.

(13) Proceeds from sales to owners, lessors, or

shippers of tangible personal property that is utilized by

interstate carriers for hire for use as rolling stock

moving in interstate commerce and equipment operated by a

telecommunications provider, licensed as a common carrier

by the Federal Communications Commission, which is

permanently installed in or affixed to aircraft moving in

interstate commerce.

(14) Machinery and equipment that will be used by the

purchaser, or a lessee of the purchaser, primarily in the

process of manufacturing or assembling tangible personal

property for wholesale or retail sale or lease, whether the

sale or lease is made directly by the manufacturer or by

some other person, whether the materials used in the

process are owned by the manufacturer or some other person,

or whether the sale or lease is made apart from or as an

incident to the seller's engaging in the service occupation

of producing machines, tools, dies, jigs, patterns,

gauges, or other similar items of no commercial value on

special order for a particular purchaser. The exemption

provided by this paragraph (14) does not include machinery

and equipment used in (i) the generation of electricity for

wholesale or retail sale; (ii) the generation or treatment

of natural or artificial gas for wholesale or retail sale

that is delivered to customers through pipes, pipelines, or

mains; or (iii) the treatment of water for wholesale or

retail sale that is delivered to customers through pipes,

pipelines, or mains. The provisions of Public Act 98-583

are declaratory of existing law as to the meaning and scope

of this exemption. Beginning on July 1, 2017, the exemption

provided by this paragraph (14) includes, but is not

limited to, graphic arts machinery and equipment, as

defined in paragraph (4) of this Section.

(15) Proceeds of mandatory service charges separately

stated on customers' bills for purchase and consumption of

food and beverages, to the extent that the proceeds of the

service charge are in fact turned over as tips or as a

substitute for tips to the employees who participate

directly in preparing, serving, hosting or cleaning up the

food or beverage function with respect to which the service

charge is imposed.

(16) Tangible personal property sold to a purchaser if

the purchaser is exempt from use tax by operation of

federal law. This paragraph is exempt from the provisions

of Section 2-70.

(17) Tangible personal property sold to a common

carrier by rail or motor that receives the physical

possession of the property in Illinois and that transports

the property, or shares with another common carrier in the

transportation of the property, out of Illinois on a

standard uniform bill of lading showing the seller of the

property as the shipper or consignor of the property to a

destination outside Illinois, for use outside Illinois.

(18) Legal tender, currency, medallions, or gold or

silver coinage issued by the State of Illinois, the

government of the United States of America, or the

government of any foreign country, and bullion.

(19) Until July 1, 2003, oil field exploration,

drilling, and production equipment, including (i) rigs and

parts of rigs, rotary rigs, cable tool rigs, and workover

rigs, (ii) pipe and tubular goods, including casing and

drill strings, (iii) pumps and pump-jack units, (iv)

storage tanks and flow lines, (v) any individual

replacement part for oil field exploration, drilling, and

production equipment, and (vi) machinery and equipment

purchased for lease; but excluding motor vehicles required

to be registered under the Illinois Vehicle Code.

(20) Photoprocessing machinery and equipment,

including repair and replacement parts, both new and used,

including that manufactured on special order, certified by

the purchaser to be used primarily for photoprocessing, and

including photoprocessing machinery and equipment

purchased for lease.

(21) Until July 1, 2023, coal and aggregate

exploration, mining, off-highway hauling, processing,

maintenance, and reclamation equipment, including

replacement parts and equipment, and including equipment

purchased for lease, but excluding motor vehicles required

to be registered under the Illinois Vehicle Code. The

changes made to this Section by Public Act 97-767 apply on

and after July 1, 2003, but no claim for credit or refund

is allowed on or after August 16, 2013 (the effective date

of Public Act 98-456) for such taxes paid during the period

beginning July 1, 2003 and ending on August 16, 2013 (the

effective date of Public Act 98-456).

(22) Until June 30, 2013, fuel and petroleum products

sold to or used by an air carrier, certified by the carrier

to be used for consumption, shipment, or storage in the

conduct of its business as an air common carrier, for a

flight destined for or returning from a location or

locations outside the United States without regard to

previous or subsequent domestic stopovers.

Beginning July 1, 2013, fuel and petroleum products

sold to or used by an air carrier, certified by the carrier

to be used for consumption, shipment, or storage in the

conduct of its business as an air common carrier, for a

flight that (i) is engaged in foreign trade or is engaged

in trade between the United States and any of its

possessions and (ii) transports at least one individual or

package for hire from the city of origination to the city

of final destination on the same aircraft, without regard

to a change in the flight number of that aircraft.

(23) A transaction in which the purchase order is

received by a florist who is located outside Illinois, but

who has a florist located in Illinois deliver the property

to the purchaser or the purchaser's donee in Illinois.

(24) Fuel consumed or used in the operation of ships,

barges, or vessels that are used primarily in or for the

transportation of property or the conveyance of persons for

hire on rivers bordering on this State if the fuel is

delivered by the seller to the purchaser's barge, ship, or

vessel while it is afloat upon that bordering river.

(25) Except as provided in item (25-5) of this Section,

a motor vehicle sold in this State to a nonresident even

though the motor vehicle is delivered to the nonresident in

this State, if the motor vehicle is not to be titled in

this State, and if a drive-away permit is issued to the

motor vehicle as provided in Section 3-603 of the Illinois

Vehicle Code or if the nonresident purchaser has vehicle

registration plates to transfer to the motor vehicle upon

returning to his or her home state. The issuance of the

drive-away permit or having the out-of-state registration

plates to be transferred is prima facie evidence that the

motor vehicle will not be titled in this State.

(25-5) The exemption under item (25) does not apply if

the state in which the motor vehicle will be titled does

not allow a reciprocal exemption for a motor vehicle sold

and delivered in that state to an Illinois resident but

titled in Illinois. The tax collected under this Act on the

sale of a motor vehicle in this State to a resident of

another state that does not allow a reciprocal exemption

shall be imposed at a rate equal to the state's rate of tax

on taxable property in the state in which the purchaser is

a resident, except that the tax shall not exceed the tax

that would otherwise be imposed under this Act. At the time

of the sale, the purchaser shall execute a statement,

signed under penalty of perjury, of his or her intent to

title the vehicle in the state in which the purchaser is a

resident within 30 days after the sale and of the fact of

the payment to the State of Illinois of tax in an amount

equivalent to the state's rate of tax on taxable property

in his or her state of residence and shall submit the

statement to the appropriate tax collection agency in his

or her state of residence. In addition, the retailer must

retain a signed copy of the statement in his or her

records. Nothing in this item shall be construed to require

the removal of the vehicle from this state following the

filing of an intent to title the vehicle in the purchaser's

state of residence if the purchaser titles the vehicle in

his or her state of residence within 30 days after the date

of sale. The tax collected under this Act in accordance

with this item (25-5) shall be proportionately distributed

as if the tax were collected at the 6.25% general rate

imposed under this Act.

(25-7) Beginning on July 1, 2007, no tax is imposed

under this Act on the sale of an aircraft, as defined in

Section 3 of the Illinois Aeronautics Act, if all of the

following conditions are met:

(1) the aircraft leaves this State within 15 days

after the later of either the issuance of the final

billing for the sale of the aircraft, or the authorized

approval for return to service, completion of the

maintenance record entry, and completion of the test

flight and ground test for inspection, as required by

14 C.F.R. 91.407;

(2) the aircraft is not based or registered in this

State after the sale of the aircraft; and

(3) the seller retains in his or her books and

records and provides to the Department a signed and

dated certification from the purchaser, on a form

prescribed by the Department, certifying that the

requirements of this item (25-7) are met. The

certificate must also include the name and address of

the purchaser, the address of the location where the

aircraft is to be titled or registered, the address of

the primary physical location of the aircraft, and

other information that the Department may reasonably

require.

For purposes of this item (25-7):

"Based in this State" means hangared, stored, or

otherwise used, excluding post-sale customizations as

defined in this Section, for 10 or more days in each

12-month period immediately following the date of the sale

of the aircraft.

"Registered in this State" means an aircraft

registered with the Department of Transportation,

Aeronautics Division, or titled or registered with the

Federal Aviation Administration to an address located in

this State.

This paragraph (25-7) is exempt from the provisions of

Section 2-70.

(26) Semen used for artificial insemination of

livestock for direct agricultural production.

(27) Horses, or interests in horses, registered with

and meeting the requirements of any of the Arabian Horse

Club Registry of America, Appaloosa Horse Club, American

Quarter Horse Association, United States Trotting

Association, or Jockey Club, as appropriate, used for

purposes of breeding or racing for prizes. This item (27)

is exempt from the provisions of Section 2-70, and the

exemption provided for under this item (27) applies for all

periods beginning May 30, 1995, but no claim for credit or

refund is allowed on or after January 1, 2008 (the

effective date of Public Act 95-88) for such taxes paid

during the period beginning May 30, 2000 and ending on

January 1, 2008 (the effective date of Public Act 95-88).

(28) Computers and communications equipment utilized

for any hospital purpose and equipment used in the

diagnosis, analysis, or treatment of hospital patients

sold to a lessor who leases the equipment, under a lease of

one year or longer executed or in effect at the time of the

purchase, to a hospital that has been issued an active tax

exemption identification number by the Department under

Section 1g of this Act.

(29) Personal property sold to a lessor who leases the

property, under a lease of one year or longer executed or

in effect at the time of the purchase, to a governmental

body that has been issued an active tax exemption

identification number by the Department under Section 1g of

this Act.

(30) Beginning with taxable years ending on or after

December 31, 1995 and ending with taxable years ending on

or before December 31, 2004, personal property that is

donated for disaster relief to be used in a State or

federally declared disaster area in Illinois or bordering

Illinois by a manufacturer or retailer that is registered

in this State to a corporation, society, association,

foundation, or institution that has been issued a sales tax

exemption identification number by the Department that

assists victims of the disaster who reside within the

declared disaster area.

(31) Beginning with taxable years ending on or after

December 31, 1995 and ending with taxable years ending on

or before December 31, 2004, personal property that is used

in the performance of infrastructure repairs in this State,

including but not limited to municipal roads and streets,

access roads, bridges, sidewalks, waste disposal systems,

water and sewer line extensions, water distribution and

purification facilities, storm water drainage and

retention facilities, and sewage treatment facilities,

resulting from a State or federally declared disaster in

Illinois or bordering Illinois when such repairs are

initiated on facilities located in the declared disaster

area within 6 months after the disaster.

(32) Beginning July 1, 1999, game or game birds sold at

a "game breeding and hunting preserve area" as that term is

used in the Wildlife Code. This paragraph is exempt from

the provisions of Section 2-70.

(33) A motor vehicle, as that term is defined in

Section 1-146 of the Illinois Vehicle Code, that is donated

to a corporation, limited liability company, society,

association, foundation, or institution that is determined

by the Department to be organized and operated exclusively

for educational purposes. For purposes of this exemption,

"a corporation, limited liability company, society,

association, foundation, or institution organized and

operated exclusively for educational purposes" means all

tax-supported public schools, private schools that offer

systematic instruction in useful branches of learning by

methods common to public schools and that compare favorably

in their scope and intensity with the course of study

presented in tax-supported schools, and vocational or

technical schools or institutes organized and operated

exclusively to provide a course of study of not less than 6

weeks duration and designed to prepare individuals to

follow a trade or to pursue a manual, technical,

mechanical, industrial, business, or commercial

occupation.

(34) Beginning January 1, 2000, personal property,

including food, purchased through fundraising events for

the benefit of a public or private elementary or secondary

school, a group of those schools, or one or more school

districts if the events are sponsored by an entity

recognized by the school district that consists primarily

of volunteers and includes parents and teachers of the

school children. This paragraph does not apply to

fundraising events (i) for the benefit of private home

instruction or (ii) for which the fundraising entity

purchases the personal property sold at the events from

another individual or entity that sold the property for the

purpose of resale by the fundraising entity and that

profits from the sale to the fundraising entity. This

paragraph is exempt from the provisions of Section 2-70.

(35) Beginning January 1, 2000 and through December 31,

2001, new or used automatic vending machines that prepare

and serve hot food and beverages, including coffee, soup,

and other items, and replacement parts for these machines.

Beginning January 1, 2002 and through June 30, 2003,

machines and parts for machines used in commercial,

coin-operated amusement and vending business if a use or

occupation tax is paid on the gross receipts derived from

the use of the commercial, coin-operated amusement and

vending machines. This paragraph is exempt from the

provisions of Section 2-70.

(35-5) Beginning August 23, 2001 and through June 30,

2016, food for human consumption that is to be consumed off

the premises where it is sold (other than alcoholic

beverages, soft drinks, and food that has been prepared for

immediate consumption) and prescription and

nonprescription medicines, drugs, medical appliances, and

insulin, urine testing materials, syringes, and needles

used by diabetics, for human use, when purchased for use by

a person receiving medical assistance under Article V of

the Illinois Public Aid Code who resides in a licensed

long-term care facility, as defined in the Nursing Home

Care Act, or a licensed facility as defined in the ID/DD

Community Care Act, the MC/DD Act, or the Specialized

Mental Health Rehabilitation Act of 2013.

(36) Beginning August 2, 2001, computers and

communications equipment utilized for any hospital purpose

and equipment used in the diagnosis, analysis, or treatment

of hospital patients sold to a lessor who leases the

equipment, under a lease of one year or longer executed or

in effect at the time of the purchase, to a hospital that

has been issued an active tax exemption identification

number by the Department under Section 1g of this Act. This

paragraph is exempt from the provisions of Section 2-70.

(37) Beginning August 2, 2001, personal property sold

to a lessor who leases the property, under a lease of one

year or longer executed or in effect at the time of the

purchase, to a governmental body that has been issued an

active tax exemption identification number by the

Department under Section 1g of this Act. This paragraph is

exempt from the provisions of Section 2-70.

(38) Beginning on January 1, 2002 and through June 30,

2016, tangible personal property purchased from an

Illinois retailer by a taxpayer engaged in centralized

purchasing activities in Illinois who will, upon receipt of

the property in Illinois, temporarily store the property in

Illinois (i) for the purpose of subsequently transporting

it outside this State for use or consumption thereafter

solely outside this State or (ii) for the purpose of being

processed, fabricated, or manufactured into, attached to,

or incorporated into other tangible personal property to be

transported outside this State and thereafter used or

consumed solely outside this State. The Director of Revenue

shall, pursuant to rules adopted in accordance with the

Illinois Administrative Procedure Act, issue a permit to

any taxpayer in good standing with the Department who is

eligible for the exemption under this paragraph (38). The

permit issued under this paragraph (38) shall authorize the

holder, to the extent and in the manner specified in the

rules adopted under this Act, to purchase tangible personal

property from a retailer exempt from the taxes imposed by

this Act. Taxpayers shall maintain all necessary books and

records to substantiate the use and consumption of all such

tangible personal property outside of the State of

Illinois.

(39) Beginning January 1, 2008, tangible personal

property used in the construction or maintenance of a

community water supply, as defined under Section 3.145 of

the Environmental Protection Act, that is operated by a

not-for-profit corporation that holds a valid water supply

permit issued under Title IV of the Environmental

Protection Act. This paragraph is exempt from the

provisions of Section 2-70.

(40) Beginning January 1, 2010, materials, parts,

equipment, components, and furnishings incorporated into

or upon an aircraft as part of the modification,

refurbishment, completion, replacement, repair, or

maintenance of the aircraft. This exemption includes

consumable supplies used in the modification,

refurbishment, completion, replacement, repair, and

maintenance of aircraft, but excludes any materials,

parts, equipment, components, and consumable supplies used

in the modification, replacement, repair, and maintenance

of aircraft engines or power plants, whether such engines

or power plants are installed or uninstalled upon any such

aircraft. "Consumable supplies" include, but are not

limited to, adhesive, tape, sandpaper, general purpose

lubricants, cleaning solution, latex gloves, and

protective films. This exemption applies only to the sale

of qualifying tangible personal property to persons who

modify, refurbish, complete, replace, or maintain an

aircraft and who (i) hold an Air Agency Certificate and are

empowered to operate an approved repair station by the

Federal Aviation Administration, (ii) have a Class IV

Rating, and (iii) conduct operations in accordance with

Part 145 of the Federal Aviation Regulations. The exemption

does not include aircraft operated by a commercial air

carrier providing scheduled passenger air service pursuant

to authority issued under Part 121 or Part 129 of the

Federal Aviation Regulations. The changes made to this

paragraph (40) by Public Act 98-534 are declarative of

existing law.

(41) Tangible personal property sold to a

public-facilities corporation, as described in Section

11-65-10 of the Illinois Municipal Code, for purposes of

constructing or furnishing a municipal convention hall,

but only if the legal title to the municipal convention

hall is transferred to the municipality without any further

consideration by or on behalf of the municipality at the

time of the completion of the municipal convention hall or

upon the retirement or redemption of any bonds or other

debt instruments issued by the public-facilities

corporation in connection with the development of the

municipal convention hall. This exemption includes

existing public-facilities corporations as provided in

Section 11-65-25 of the Illinois Municipal Code. This

paragraph is exempt from the provisions of Section 2-70.

(42) Beginning January 1, 2017, menstrual pads,

tampons, and menstrual cups.

(43) Merchandise that is subject to the Rental Purchase

Agreement Occupation and Use Tax. The purchaser must

certify that the item is purchased to be rented subject to

a rental purchase agreement, as defined in the Rental

Purchase Agreement Act, and provide proof of registration

under the Rental Purchase Agreement Occupation and Use Tax

Act. This paragraph is exempt from the provisions of

Section 2-70.

(44) Qualified tangible personal property used in the

construction or operation of a data center that has been

granted a certificate of exemption by the Department of

Commerce and Economic Opportunity, whether that tangible

personal property is purchased by the owner, operator, or

tenant of the data center or by a contractor or

subcontractor of the owner, operator, or tenant. Data

centers that would have qualified for a certificate of

exemption prior to January 1, 2020 had this amendatory Act

of the 101st General Assembly been in effect, may apply for

and obtain an exemption for subsequent purchases of

computer equipment or enabling software purchased or

leased to upgrade, supplement, or replace computer

equipment or enabling software purchased or leased in the

original investment that would have qualified.

The Department of Commerce and Economic Opportunity

shall grant a certificate of exemption under this item (44)

to qualified data centers as defined by Section 605-1025 of

the Department of Commerce and Economic Opportunity Law of

the Civil Administrative Code of Illinois.

For the purposes of this item (44):

"Data center" means a building or a series of

buildings rehabilitated or constructed to house

working servers in one physical location or multiple

sites within the State of Illinois.

"Qualified tangible personal property" means:

electrical systems and equipment; climate control and

chilling equipment and systems; mechanical systems and

equipment; monitoring and secure systems; emergency

generators; hardware; computers; servers; data storage

devices; network connectivity equipment; racks;

cabinets; telecommunications cabling infrastructure;

raised floor systems; peripheral components or

systems; software; mechanical, electrical, or plumbing

systems; battery systems; cooling systems and towers;

temperature control systems; other cabling; and other

data center infrastructure equipment and systems

necessary to operate qualified tangible personal

property, including fixtures; and component parts of

any of the foregoing, including installation,

maintenance, repair, refurbishment, and replacement of

qualified tangible personal property to generate,

transform, transmit, distribute, or manage electricity

necessary to operate qualified tangible personal

property; and all other tangible personal property

that is essential to the operations of a computer data

center. The term "qualified tangible personal

property" also includes building materials physically

incorporated in to the qualifying data center. To

document the exemption allowed under this Section, the

retailer must obtain from the purchaser a copy of the

certificate of eligibility issued by the Department of

Commerce and Economic Opportunity.

This item (44) is exempt from the provisions of Section

2-70.

(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;

100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.

1-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18;

100-1171, eff. 1-4-19; revised 1-8-19.)

(35 ILCS 120/2-12)

Sec. 2-12. Location where retailer is deemed to be engaged

in the business of selling. The purpose of this Section is to

specify where a retailer is deemed to be engaged in the

business of selling tangible personal property for the purposes

of this Act, the Use Tax Act, the Service Use Tax Act, and the

Service Occupation Tax Act, and for the purpose of collecting

any other local retailers' occupation tax administered by the

Department. This Section applies only with respect to the

particular selling activities described in the following

paragraphs. The provisions of this Section are not intended to,

and shall not be interpreted to, affect where a retailer is

deemed to be engaged in the business of selling with respect to

any activity that is not specifically described in the

following paragraphs.

(1) If a purchaser who is present at the retailer's

place of business, having no prior commitment to the

retailer, agrees to purchase and makes payment for tangible

personal property at the retailer's place of business, then

the transaction shall be deemed an over-the-counter sale

occurring at the retailer's same place of business where

the purchaser was present and made payment for that

tangible personal property if the retailer regularly

stocks the purchased tangible personal property or similar

tangible personal property in the quantity, or similar

quantity, for sale at the retailer's same place of business

and then either (i) the purchaser takes possession of the

tangible personal property at the same place of business or

(ii) the retailer delivers or arranges for the tangible

personal property to be delivered to the purchaser.

(2) If a purchaser, having no prior commitment to the

retailer, agrees to purchase tangible personal property

and makes payment over the phone, in writing, or via the

Internet and takes possession of the tangible personal

property at the retailer's place of business, then the sale

shall be deemed to have occurred at the retailer's place of

business where the purchaser takes possession of the

property if the retailer regularly stocks the item or

similar items in the quantity, or similar quantities,

purchased by the purchaser.

(3) A retailer is deemed to be engaged in the business

of selling food, beverages, or other tangible personal

property through a vending machine at the location where

the vending machine is located at the time the sale is made

if (i) the vending machine is a device operated by coin,

currency, credit card, token, coupon or similar device; (2)

the food, beverage or other tangible personal property is

contained within the vending machine and dispensed from the

vending machine; and (3) the purchaser takes possession of

the purchased food, beverage or other tangible personal

property immediately.

(4) Minerals. A producer of coal or other mineral mined

in Illinois is deemed to be engaged in the business of

selling at the place where the coal or other mineral mined

in Illinois is extracted from the earth. With respect to

minerals (i) the term "extracted from the earth" means the

location at which the coal or other mineral is extracted

from the mouth of the mine, and (ii) a "mineral" includes

not only coal, but also oil, sand, stone taken from a

quarry, gravel and any other thing commonly regarded as a

mineral and extracted from the earth. This paragraph does

not apply to coal or another mineral when it is delivered

or shipped by the seller to the purchaser at a point

outside Illinois so that the sale is exempt under the

United States Constitution as a sale in interstate or

foreign commerce.

(5) A retailer selling tangible personal property to a

nominal lessee or bailee pursuant to a lease with a dollar

or other nominal option to purchase is engaged in the

business of selling at the location where the property is

first delivered to the lessee or bailee for its intended

use.

(6) Beginning on July 1, 2020, for the purposes of

determining the correct local retailers' occupation tax

rate, retail sales made by a remote retailer that meet or

exceed the thresholds established in paragraph (1) or (2)

of subsection (b) of Section 2 of this Act shall be deemed

to be made at the Illinois location to which the tangible

personal property is shipped or delivered or at which

possession is taken by the purchaser.

(Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)

(35 ILCS 120/2a) (from Ch. 120, par. 441a)

Sec. 2a. It is unlawful for any person to engage in the

business of selling tangible personal property at retail in

this State without a certificate of registration from the

Department. Application for a certificate of registration

shall be made to the Department upon forms furnished by it.

Each such application shall be signed and verified and shall

state: (1) the name and social security number of the

applicant; (2) the address of his principal place of business;

(3) the address of the principal place of business from which

he engages in the business of selling tangible personal

property at retail in this State and the addresses of all other

places of business, if any (enumerating such addresses, if any,

in a separate list attached to and made a part of the

application), from which he engages in the business of selling

tangible personal property at retail in this State; (4) the

name and address of the person or persons who will be

responsible for filing returns and payment of taxes due under

this Act; (5) in the case of a publicly traded corporation, the

name and title of the Chief Financial Officer, Chief Operating

Officer, and any other officer or employee with responsibility

for preparing tax returns under this Act, and, in the case of

all other corporations, the name, title, and social security

number of each corporate officer; (6) in the case of a limited

liability company, the name, social security number, and FEIN

number of each manager and member; and (7) such other

information as the Department may reasonably require. The

application shall contain an acceptance of responsibility

signed by the person or persons who will be responsible for

filing returns and payment of the taxes due under this Act. If

the applicant will sell tangible personal property at retail

through vending machines, his application to register shall

indicate the number of vending machines to be so operated. If

requested by the Department at any time, that person shall

verify the total number of vending machines he or she uses in

his or her business of selling tangible personal property at

retail.

The Department shall provide by rule for an expedited

business registration process for remote retailers required to

register and file under subsection (b) of Section 2 who use a

certified service provider to file their returns under this

Act. Such expedited registration process shall allow the

Department to register a taxpayer based upon the same

registration information required by the Streamlined Sales Tax

Governing Board for states participating in the Streamlined

Sales Tax Project.

The Department may deny a certificate of registration to

any applicant if a person who is named as the owner, a partner,

a manager or member of a limited liability company, or a

corporate officer of the applicant on the application for the

certificate of registration is or has been named as the owner,

a partner, a manager or member of a limited liability company,

or a corporate officer on the application for the certificate

of registration of another retailer that is in default for

moneys due under this Act or any other tax or fee Act

administered by the Department. For purposes of this paragraph

only, in determining whether a person is in default for moneys

due, the Department shall include only amounts established as a

final liability within the 20 years prior to the date of the

Department's notice of denial of a certificate of registration.

The Department may require an applicant for a certificate

of registration hereunder to, at the time of filing such

application, furnish a bond from a surety company authorized to

do business in the State of Illinois, or an irrevocable bank

letter of credit or a bond signed by 2 personal sureties who

have filed, with the Department, sworn statements disclosing

net assets equal to at least 3 times the amount of the bond to

be required of such applicant, or a bond secured by an

assignment of a bank account or certificate of deposit, stocks

or bonds, conditioned upon the applicant paying to the State of

Illinois all moneys becoming due under this Act and under any

other State tax law or municipal or county tax ordinance or

resolution under which the certificate of registration that is

issued to the applicant under this Act will permit the

applicant to engage in business without registering separately

under such other law, ordinance or resolution. In making a

determination as to whether to require a bond or other

security, the Department shall take into consideration whether

the owner, any partner, any manager or member of a limited

liability company, or a corporate officer of the applicant is

or has been the owner, a partner, a manager or member of a

limited liability company, or a corporate officer of another

retailer that is in default for moneys due under this Act or

any other tax or fee Act administered by the Department; and

whether the owner, any partner, any manager or member of a

limited liability company, or a corporate officer of the

applicant is or has been the owner, a partner, a manager or

member of a limited liability company, or a corporate officer

of another retailer whose certificate of registration has been

revoked within the previous 5 years under this Act or any other

tax or fee Act administered by the Department. If a bond or

other security is required, the Department shall fix the amount

of the bond or other security, taking into consideration the

amount of money expected to become due from the applicant under

this Act and under any other State tax law or municipal or

county tax ordinance or resolution under which the certificate

of registration that is issued to the applicant under this Act

will permit the applicant to engage in business without

registering separately under such other law, ordinance, or

resolution. The amount of security required by the Department

shall be such as, in its opinion, will protect the State of

Illinois against failure to pay the amount which may become due

from the applicant under this Act and under any other State tax

law or municipal or county tax ordinance or resolution under

which the certificate of registration that is issued to the

applicant under this Act will permit the applicant to engage in

business without registering separately under such other law,

ordinance or resolution, but the amount of the security

required by the Department shall not exceed three times the

amount of the applicant's average monthly tax liability, or

$50,000.00, whichever amount is lower.

No certificate of registration under this Act shall be

issued by the Department until the applicant provides the

Department with satisfactory security, if required, as herein

provided for.

Upon receipt of the application for certificate of

registration in proper form, and upon approval by the

Department of the security furnished by the applicant, if

required, the Department shall issue to such applicant a

certificate of registration which shall permit the person to

whom it is issued to engage in the business of selling tangible

personal property at retail in this State. The certificate of

registration shall be conspicuously displayed at the place of

business which the person so registered states in his

application to be the principal place of business from which he

engages in the business of selling tangible personal property

at retail in this State.

No certificate of registration issued prior to July 1, 2017

to a taxpayer who files returns required by this Act on a

monthly basis or renewed prior to July 1, 2017 by a taxpayer

who files returns required by this Act on a monthly basis shall

be valid after the expiration of 5 years from the date of its

issuance or last renewal. No certificate of registration issued

on or after July 1, 2017 to a taxpayer who files returns

required by this Act on a monthly basis or renewed on or after

July 1, 2017 by a taxpayer who files returns required by this

Act on a monthly basis shall be valid after the expiration of

one year from the date of its issuance or last renewal. The

expiration date of a sub-certificate of registration shall be

that of the certificate of registration to which the

sub-certificate relates. Prior to July 1, 2017, a certificate

of registration shall automatically be renewed, subject to

revocation as provided by this Act, for an additional 5 years

from the date of its expiration unless otherwise notified by

the Department as provided by this paragraph. On and after July

1, 2017, a certificate of registration shall automatically be

renewed, subject to revocation as provided by this Act, for an

additional one year from the date of its expiration unless

otherwise notified by the Department as provided by this

paragraph.

Where a taxpayer to whom a certificate of registration is

issued under this Act is in default to the State of Illinois

for delinquent returns or for moneys due under this Act or any

other State tax law or municipal or county ordinance

administered or enforced by the Department, the Department

shall, not less than 60 days before the expiration date of such

certificate of registration, give notice to the taxpayer to

whom the certificate was issued of the account period of the

delinquent returns, the amount of tax, penalty and interest due

and owing from the taxpayer, and that the certificate of

registration shall not be automatically renewed upon its

expiration date unless the taxpayer, on or before the date of

expiration, has filed and paid the delinquent returns or paid

the defaulted amount in full. A taxpayer to whom such a notice

is issued shall be deemed an applicant for renewal. The

Department shall promulgate regulations establishing

procedures for taxpayers who file returns on a monthly basis

but desire and qualify to change to a quarterly or yearly

filing basis and will no longer be subject to renewal under

this Section, and for taxpayers who file returns on a yearly or

quarterly basis but who desire or are required to change to a

monthly filing basis and will be subject to renewal under this

Section.

The Department may in its discretion approve renewal by an

applicant who is in default if, at the time of application for

renewal, the applicant files all of the delinquent returns or

pays to the Department such percentage of the defaulted amount

as may be determined by the Department and agrees in writing to

waive all limitations upon the Department for collection of the

remaining defaulted amount to the Department over a period not

to exceed 5 years from the date of renewal of the certificate;

however, no renewal application submitted by an applicant who

is in default shall be approved if the immediately preceding

renewal by the applicant was conditioned upon the installment

payment agreement described in this Section. The payment

agreement herein provided for shall be in addition to and not

in lieu of the security that may be required by this Section of

a taxpayer who is no longer considered a prior continuous

compliance taxpayer. The execution of the payment agreement as

provided in this Act shall not toll the accrual of interest at

the statutory rate.

The Department may suspend a certificate of registration if

the Department finds that the person to whom the certificate of

registration has been issued knowingly sold contraband

cigarettes.

A certificate of registration issued under this Act more

than 5 years before January 1, 1990 (the effective date of

Public Act 86-383) shall expire and be subject to the renewal

provisions of this Section on the next anniversary of the date

of issuance of such certificate which occurs more than 6 months

after January 1, 1990 (the effective date of Public Act

86-383). A certificate of registration issued less than 5 years

before January 1, 1990 (the effective date of Public Act

86-383) shall expire and be subject to the renewal provisions

of this Section on the 5th anniversary of the issuance of the

certificate.

If the person so registered states that he operates other

places of business from which he engages in the business of

selling tangible personal property at retail in this State, the

Department shall furnish him with a sub-certificate of

registration for each such place of business, and the applicant

shall display the appropriate sub-certificate of registration

at each such place of business. All sub-certificates of

registration shall bear the same registration number as that

appearing upon the certificate of registration to which such

sub-certificates relate.

If the applicant will sell tangible personal property at

retail through vending machines, the Department shall furnish

him with a sub-certificate of registration for each such

vending machine, and the applicant shall display the

appropriate sub-certificate of registration on each such

vending machine by attaching the sub-certificate of

registration to a conspicuous part of such vending machine. If

a person who is registered to sell tangible personal property

at retail through vending machines adds an additional vending

machine or additional vending machines to the number of vending

machines he or she uses in his or her business of selling

tangible personal property at retail, he or she shall notify

the Department, on a form prescribed by the Department, to

request an additional sub-certificate or additional

sub-certificates of registration, as applicable. With each

such request, the applicant shall report the number of

sub-certificates of registration he or she is requesting as

well as the total number of vending machines from which he or

she makes retail sales.

Where the same person engages in 2 or more businesses of

selling tangible personal property at retail in this State,

which businesses are substantially different in character or

engaged in under different trade names or engaged in under

other substantially dissimilar circumstances (so that it is

more practicable, from an accounting, auditing or bookkeeping

standpoint, for such businesses to be separately registered),

the Department may require or permit such person (subject to

the same requirements concerning the furnishing of security as

those that are provided for hereinbefore in this Section as to

each application for a certificate of registration) to apply

for and obtain a separate certificate of registration for each

such business or for any of such businesses, under a single

certificate of registration supplemented by related

sub-certificates of registration.

Any person who is registered under the Retailers'

Occupation Tax Act as of March 8, 1963, and who, during the

3-year period immediately prior to March 8, 1963, or during a

continuous 3-year period part of which passed immediately

before and the remainder of which passes immediately after

March 8, 1963, has been so registered continuously and who is

determined by the Department not to have been either delinquent

or deficient in the payment of tax liability during that period

under this Act or under any other State tax law or municipal or

county tax ordinance or resolution under which the certificate

of registration that is issued to the registrant under this Act

will permit the registrant to engage in business without

registering separately under such other law, ordinance or

resolution, shall be considered to be a Prior Continuous

Compliance taxpayer. Also any taxpayer who has, as verified by

the Department, faithfully and continuously complied with the

condition of his bond or other security under the provisions of

this Act for a period of 3 consecutive years shall be

considered to be a Prior Continuous Compliance taxpayer.

Every Prior Continuous Compliance taxpayer shall be exempt

from all requirements under this Act concerning the furnishing

of a bond or other security as a condition precedent to his

being authorized to engage in the business of selling tangible

personal property at retail in this State. This exemption shall

continue for each such taxpayer until such time as he may be

determined by the Department to be delinquent in the filing of

any returns, or is determined by the Department (either through

the Department's issuance of a final assessment which has

become final under the Act, or by the taxpayer's filing of a

return which admits tax that is not paid to be due) to be

delinquent or deficient in the paying of any tax under this Act

or under any other State tax law or municipal or county tax

ordinance or resolution under which the certificate of

registration that is issued to the registrant under this Act

will permit the registrant to engage in business without

registering separately under such other law, ordinance or

resolution, at which time that taxpayer shall become subject to

all the financial responsibility requirements of this Act and,

as a condition of being allowed to continue to engage in the

business of selling tangible personal property at retail, may

be required to post bond or other acceptable security with the

Department covering liability which such taxpayer may

thereafter incur. Any taxpayer who fails to pay an admitted or

established liability under this Act may also be required to

post bond or other acceptable security with this Department

guaranteeing the payment of such admitted or established

liability.

No certificate of registration shall be issued to any

person who is in default to the State of Illinois for moneys

due under this Act or under any other State tax law or

municipal or county tax ordinance or resolution under which the

certificate of registration that is issued to the applicant

under this Act will permit the applicant to engage in business

without registering separately under such other law, ordinance

or resolution.

Any person aggrieved by any decision of the Department

under this Section may, within 20 days after notice of such

decision, protest and request a hearing, whereupon the

Department shall give notice to such person of the time and

place fixed for such hearing and shall hold a hearing in

conformity with the provisions of this Act and then issue its

final administrative decision in the matter to such person. In

the absence of such a protest within 20 days, the Department's

decision shall become final without any further determination

being made or notice given.

With respect to security other than bonds (upon which the

Department may sue in the event of a forfeiture), if the

taxpayer fails to pay, when due, any amount whose payment such

security guarantees, the Department shall, after such

liability is admitted by the taxpayer or established by the

Department through the issuance of a final assessment that has

become final under the law, convert the security which that

taxpayer has furnished into money for the State, after first

giving the taxpayer at least 10 days' written notice, by

registered or certified mail, to pay the liability or forfeit

such security to the Department. If the security consists of

stocks or bonds or other securities which are listed on a

public exchange, the Department shall sell such securities

through such public exchange. If the security consists of an

irrevocable bank letter of credit, the Department shall convert

the security in the manner provided for in the Uniform

Commercial Code. If the security consists of a bank certificate

of deposit, the Department shall convert the security into

money by demanding and collecting the amount of such bank

certificate of deposit from the bank which issued such

certificate. If the security consists of a type of stocks or

other securities which are not listed on a public exchange, the

Department shall sell such security to the highest and best

bidder after giving at least 10 days' notice of the date, time

and place of the intended sale by publication in the "State

Official Newspaper". If the Department realizes more than the

amount of such liability from the security, plus the expenses

incurred by the Department in converting the security into

money, the Department shall pay such excess to the taxpayer who

furnished such security, and the balance shall be paid into the

State Treasury.

The Department shall discharge any surety and shall release

and return any security deposited, assigned, pledged or

otherwise provided to it by a taxpayer under this Section

within 30 days after:

(1) such taxpayer becomes a Prior Continuous

Compliance taxpayer; or

(2) such taxpayer has ceased to collect receipts on

which he is required to remit tax to the Department, has

filed a final tax return, and has paid to the Department an

amount sufficient to discharge his remaining tax

liability, as determined by the Department, under this Act

and under every other State tax law or municipal or county

tax ordinance or resolution under which the certificate of

registration issued under this Act permits the registrant

to engage in business without registering separately under

such other law, ordinance or resolution. The Department

shall make a final determination of the taxpayer's

outstanding tax liability as expeditiously as possible

after his final tax return has been filed; if the

Department cannot make such final determination within 45

days after receiving the final tax return, within such

period it shall so notify the taxpayer, stating its reasons

therefor.

(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17;

100-863, eff. 8-14-18.)

Section 15-50. The Cigarette Tax Act is amended by changing

Section 2 as follows:

(35 ILCS 130/2) (from Ch. 120, par. 453.2)

Sec. 2. Tax imposed; rate; collection, payment, and

distribution; discount.

(a) Beginning on July 1, 2019, in place of the aggregate

tax rate of 99 mills previously imposed by this Act, a tax is

imposed upon any person engaged in business as a retailer of

cigarettes at the rate of 149 mills per cigarette sold or

otherwise disposed of in the course of such business in this

State. A tax is imposed upon any person engaged in business as

a retailer of cigarettes in this State at the rate of 5 1/2

mills per cigarette sold, or otherwise disposed of in the

course of such business in this State. In addition to any other

tax imposed by this Act, a tax is imposed upon any person

engaged in business as a retailer of cigarettes in this State

at a rate of 1/2 mill per cigarette sold or otherwise disposed

of in the course of such business in this State on and after

January 1, 1947, and shall be paid into the Metropolitan Fair

and Exposition Authority Reconstruction Fund or as otherwise

provided in Section 29. On and after December 1, 1985, in

addition to any other tax imposed by this Act, a tax is imposed

upon any person engaged in business as a retailer of cigarettes

in this State at a rate of 4 mills per cigarette sold or

otherwise disposed of in the course of such business in this

State. Of the additional tax imposed by this amendatory Act of

1985, $9,000,000 of the moneys received by the Department of

Revenue pursuant to this Act shall be paid each month into the

Common School Fund. On and after the effective date of this

amendatory Act of 1989, in addition to any other tax imposed by

this Act, a tax is imposed upon any person engaged in business

as a retailer of cigarettes at the rate of 5 mills per

cigarette sold or otherwise disposed of in the course of such

business in this State. On and after the effective date of this

amendatory Act of 1993, in addition to any other tax imposed by

this Act, a tax is imposed upon any person engaged in business

as a retailer of cigarettes at the rate of 7 mills per

cigarette sold or otherwise disposed of in the course of such

business in this State. On and after December 15, 1997, in

addition to any other tax imposed by this Act, a tax is imposed

upon any person engaged in business as a retailer of cigarettes

at the rate of 7 mills per cigarette sold or otherwise disposed

of in the course of such business of this State. All of the

moneys received by the Department of Revenue pursuant to this

Act and the Cigarette Use Tax Act from the additional taxes

imposed by this amendatory Act of 1997, shall be paid each

month into the Common School Fund. On and after July 1, 2002,

in addition to any other tax imposed by this Act, a tax is

imposed upon any person engaged in business as a retailer of

cigarettes at the rate of 20.0 mills per cigarette sold or

otherwise disposed of in the course of such business in this

State. Beginning on June 24, 2012, in addition to any other tax

imposed by this Act, a tax is imposed upon any person engaged

in business as a retailer of cigarettes at the rate of 50 mills

per cigarette sold or otherwise disposed of in the course of

such business in this State. All moneys received by the

Department of Revenue under this Act and the Cigarette Use Tax

Act from the additional taxes imposed by this amendatory Act of

the 97th General Assembly shall be paid each month into the

Healthcare Provider Relief Fund.

(b) The payment of such taxes shall be evidenced by a stamp

affixed to each original package of cigarettes, or an

authorized substitute for such stamp imprinted on each original

package of such cigarettes underneath the sealed transparent

outside wrapper of such original package, as hereinafter

provided. However, such taxes are not imposed upon any activity

in such business in interstate commerce or otherwise, which

activity may not under the Constitution and statutes of the

United States be made the subject of taxation by this State.

Beginning on the effective date of this amendatory Act of

the 92nd General Assembly and through June 30, 2006, all of the

moneys received by the Department of Revenue pursuant to this

Act and the Cigarette Use Tax Act, other than the moneys that

are dedicated to the Common School Fund, shall be distributed

each month as follows: first, there shall be paid into the

General Revenue Fund an amount which, when added to the amount

paid into the Common School Fund for that month, equals

$33,300,000, except that in the month of August of 2004, this

amount shall equal $83,300,000; then, from the moneys

remaining, if any amounts required to be paid into the General

Revenue Fund in previous months remain unpaid, those amounts

shall be paid into the General Revenue Fund; then, beginning on

April 1, 2003, from the moneys remaining, $5,000,000 per month

shall be paid into the School Infrastructure Fund; then, if any

amounts required to be paid into the School Infrastructure Fund

in previous months remain unpaid, those amounts shall be paid

into the School Infrastructure Fund; then the moneys remaining,

if any, shall be paid into the Long-Term Care Provider Fund. To

the extent that more than $25,000,000 has been paid into the

General Revenue Fund and Common School Fund per month for the

period of July 1, 1993 through the effective date of this

amendatory Act of 1994 from combined receipts of the Cigarette

Tax Act and the Cigarette Use Tax Act, notwithstanding the

distribution provided in this Section, the Department of

Revenue is hereby directed to adjust the distribution provided

in this Section to increase the next monthly payments to the

Long Term Care Provider Fund by the amount paid to the General

Revenue Fund and Common School Fund in excess of $25,000,000

per month and to decrease the next monthly payments to the

General Revenue Fund and Common School Fund by that same excess

amount.

Beginning on July 1, 2006, all of the moneys received by

the Department of Revenue pursuant to this Act and the

Cigarette Use Tax Act, other than the moneys that are dedicated

to the Common School Fund and, beginning on the effective date

of this amendatory Act of the 97th General Assembly, other than

the moneys from the additional taxes imposed by this amendatory

Act of the 97th General Assembly that must be paid each month

into the Healthcare Provider Relief Fund, and other than the

moneys from the additional taxes imposed by this amendatory Act

of the 101st General Assembly that must be paid each month

under subsection (c), shall be distributed each month as

follows: first, there shall be paid into the General Revenue

Fund an amount that, when added to the amount paid into the

Common School Fund for that month, equals $29,200,000; then,

from the moneys remaining, if any amounts required to be paid

into the General Revenue Fund in previous months remain unpaid,

those amounts shall be paid into the General Revenue Fund; then

from the moneys remaining, $5,000,000 per month shall be paid

into the School Infrastructure Fund; then, if any amounts

required to be paid into the School Infrastructure Fund in

previous months remain unpaid, those amounts shall be paid into

the School Infrastructure Fund; then the moneys remaining, if

any, shall be paid into the Long-Term Care Provider Fund.

(c) Beginning on July 1, 2019, all of the moneys from the

additional taxes imposed by this amendatory Act of the 101st

General Assembly received by the Department of Revenue pursuant

to this Act and the Cigarette Use Tax Act shall be distributed

each month into the Capital Projects Fund.

(d) Moneys collected from the tax imposed on little cigars

under Section 10-10 of the Tobacco Products Tax Act of 1995

shall be included with the moneys collected under the Cigarette

Tax Act and the Cigarette Use Tax Act when making distributions

to the Common School Fund, the Healthcare Provider Relief Fund,

the General Revenue Fund, the School Infrastructure Fund, and

the Long-Term Care Provider Fund under this Section.

(e) If the When any tax imposed herein terminates or has

terminated, distributors who have bought stamps while such tax

was in effect and who therefore paid such tax, but who can

show, to the Department's satisfaction, that they sold the

cigarettes to which they affixed such stamps after such tax had

terminated and did not recover the tax or its equivalent from

purchasers, shall be allowed by the Department to take credit

for such absorbed tax against subsequent tax stamp purchases

from the Department by such distributor.

(f) The impact of the tax levied by this Act is imposed

upon the retailer and shall be prepaid or pre-collected by the

distributor for the purpose of convenience and facility only,

and the amount of the tax shall be added to the price of the

cigarettes sold by such distributor. Collection of the tax

shall be evidenced by a stamp or stamps affixed to each

original package of cigarettes, as hereinafter provided. Any

distributor who purchases stamps may credit any excess payments

verified by the Department against amounts subsequently due for

the purchase of additional stamps, until such time as no excess

payment remains.

(g) Each distributor shall collect the tax from the

retailer at or before the time of the sale, shall affix the

stamps as hereinafter required, and shall remit the tax

collected from retailers to the Department, as hereinafter

provided. Any distributor who fails to properly collect and pay

the tax imposed by this Act shall be liable for the tax. Any

distributor having cigarettes to which stamps have been affixed

in his possession for sale on the effective date of this

amendatory Act of 1989 shall not be required to pay the

additional tax imposed by this amendatory Act of 1989 on such

stamped cigarettes. Any distributor having cigarettes to which

stamps have been affixed in his or her possession for sale at

12:01 a.m. on the effective date of this amendatory Act of

1993, is required to pay the additional tax imposed by this

amendatory Act of 1993 on such stamped cigarettes. This

payment, less the discount provided in subsection (b), shall be

due when the distributor first makes a purchase of cigarette

tax stamps after the effective date of this amendatory Act of

1993, or on the first due date of a return under this Act after

the effective date of this amendatory Act of 1993, whichever

occurs first. Any distributor having cigarettes to which stamps

have been affixed in his possession for sale on December 15,

1997 shall not be required to pay the additional tax imposed by

this amendatory Act of 1997 on such stamped cigarettes.

Any distributor having cigarettes to which stamps have been

affixed in his or her possession for sale on July 1, 2002 shall

not be required to pay the additional tax imposed by this

amendatory Act of the 92nd General Assembly on those stamped

cigarettes.

(h) Any distributor having cigarettes in his or her

possession on July 1, 2019 to which tax stamps have been

affixed, and any distributor having stamps in his or her

possession on July 1, 2019 that have not been affixed to

packages of cigarettes before July 1, 2019, is required to pay

the additional tax that begins on July 1, 2019 imposed by this

amendatory Act of the 101st General Assembly to the extent that

the volume of affixed and unaffixed stamps in the distributor's

possession on July 1, 2019 exceeds the average monthly volume

of cigarette stamps purchased by the distributor in calendar

year 2018. This payment, less the discount provided in

subsection (l), is due when the distributor first makes a

purchase of cigarette stamps on or after July 1, 2019 or on the

first due date of a return under this Act occurring on or after

July 1, 2019, whichever occurs first. Those distributors may

elect to pay the additional tax on packages of cigarettes to

which stamps have been affixed and on any stamps in the

distributor's possession that have not been affixed to packages

of cigarettes in their possession on July 1, 2019 over a period

not to exceed 12 months from the due date of the additional tax

by notifying the Department in writing. The first payment for

distributors making such election is due when the distributor

first makes a purchase of cigarette tax stamps on or after July

1, 2019 or on the first due date of a return under this Act

occurring on or after July 1, 2019, whichever occurs first.

Distributors making such an election are not entitled to take

the discount provided in subsection (l) on such payments.

(i) Any retailer having cigarettes in its his or her

possession on July 1, 2019 June 24, 2012 to which tax stamps

have been affixed is not required to pay the additional tax

that begins on July 1, 2019 June 24, 2012 imposed by this

amendatory Act of the 101st General Assembly this amendatory

Act of the 97th General Assembly on those stamped cigarettes.

Any distributor having cigarettes in his or her possession on

June 24, 2012 to which tax stamps have been affixed, and any

distributor having stamps in his or her possession on June 24,

2012 that have not been affixed to packages of cigarettes

before June 24, 2012, is required to pay the additional tax

that begins on June 24, 2012 imposed by this amendatory Act of

the 97th General Assembly to the extent the calendar year 2012

average monthly volume of cigarette stamps in the distributor's

possession exceeds the average monthly volume of cigarette

stamps purchased by the distributor in calendar year 2011. This

payment, less the discount provided in subsection (b), is due

when the distributor first makes a purchase of cigarette stamps

on or after June 24, 2012 or on the first due date of a return

under this Act occurring on or after June 24, 2012, whichever

occurs first. Those distributors may elect to pay the

additional tax on packages of cigarettes to which stamps have

been affixed and on any stamps in the distributor's possession

that have not been affixed to packages of cigarettes over a

period not to exceed 12 months from the due date of the

additional tax by notifying the Department in writing. The

first payment for distributors making such election is due when

the distributor first makes a purchase of cigarette tax stamps

on or after June 24, 2012 or on the first due date of a return

under this Act occurring on or after June 24, 2012, whichever

occurs first. Distributors making such an election are not

entitled to take the discount provided in subsection (b) on

such payments.

(j) Distributors making sales of cigarettes to secondary

distributors shall add the amount of the tax to the price of

the cigarettes sold by the distributors. Secondary

distributors making sales of cigarettes to retailers shall

include the amount of the tax in the price of the cigarettes

sold to retailers. The amount of tax shall not be less than the

amount of taxes imposed by the State and all local

jurisdictions. The amount of local taxes shall be calculated

based on the location of the retailer's place of business shown

on the retailer's certificate of registration or

sub-registration issued to the retailer pursuant to Section 2a

of the Retailers' Occupation Tax Act. The original packages of

cigarettes sold to the retailer shall bear all the required

stamps, or other indicia, for the taxes included in the price

of cigarettes.

(k) The amount of the Cigarette Tax imposed by this Act

shall be separately stated, apart from the price of the goods,

by distributors, manufacturer representatives, secondary

distributors, and retailers, in all bills and sales invoices.

(l) (b) The distributor shall be required to collect the

tax taxes provided under paragraph (a) hereof, and, to cover

the costs of such collection, shall be allowed a discount

during any year commencing July 1st and ending the following

June 30th in accordance with the schedule set out hereinbelow,

which discount shall be allowed at the time of purchase of the

stamps when purchase is required by this Act, or at the time

when the tax is remitted to the Department without the purchase

of stamps from the Department when that method of paying the

tax is required or authorized by this Act. Prior to December 1,

1985, a discount equal to 1 2/3% of the amount of the tax up to

and including the first $700,000 paid hereunder by such

distributor to the Department during any such year; 1 1/3% of

the next $700,000 of tax or any part thereof, paid hereunder by

such distributor to the Department during any such year; 1% of

the next $700,000 of tax, or any part thereof, paid hereunder

by such distributor to the Department during any such year, and

2/3 of 1% of the amount of any additional tax paid hereunder by

such distributor to the Department during any such year shall

apply.

On and after December 1, 1985, a discount equal to 1.75% of

the amount of the tax payable under this Act up to and

including the first $3,000,000 paid hereunder by such

distributor to the Department during any such year and 1.5% of

the amount of any additional tax paid hereunder by such

distributor to the Department during any such year shall apply.

Two or more distributors that use a common means of

affixing revenue tax stamps or that are owned or controlled by

the same interests shall be treated as a single distributor for

the purpose of computing the discount.

(m) (c) The taxes herein imposed are in addition to all

other occupation or privilege taxes imposed by the State of

Illinois, or by any political subdivision thereof, or by any

municipal corporation.

(Source: P.A. 100-1171, eff. 1-4-19.)

(35 ILCS 130/29 rep.)

Section 15-55. The Cigarette Tax Act is amended by

repealing Section 29.

Section 15-60. The Cigarette Use Tax Act is amended by

changing Sections 2 and 35 as follows:

(35 ILCS 135/2) (from Ch. 120, par. 453.32)

Sec. 2. Beginning on July 1, 2019, in place of the

aggregate tax rate of 99 mills previously imposed by this Act,

a tax is imposed upon the privilege of using cigarettes in this

State at the rate of 149 mills per cigarette so used. A tax is

imposed upon the privilege of using cigarettes in this State,

at the rate of 6 mills per cigarette so used. On and after

December 1, 1985, in addition to any other tax imposed by this

Act, a tax is imposed upon the privilege of using cigarettes in

this State at a rate of 4 mills per cigarette so used. On and

after the effective date of this amendatory Act of 1989, in

addition to any other tax imposed by this Act, a tax is imposed

upon the privilege of using cigarettes in this State at the

rate of 5 mills per cigarette so used. On and after the

effective date of this amendatory Act of 1993, in addition to

any other tax imposed by this Act, a tax is imposed upon the

privilege of using cigarettes in this State at a rate of 7

mills per cigarette so used. On and after December 15, 1997, in

addition to any other tax imposed by this Act, a tax is imposed

upon the privilege of using cigarettes in this State at a rate

of 7 mills per cigarette so used. On and after July 1, 2002, in

addition to any other tax imposed by this Act, a tax is imposed

upon the privilege of using cigarettes in this State at a rate

of 20.0 mills per cigarette so used. Beginning on June 24,

2012, in addition to any other tax imposed by this Act, a tax

is imposed upon the privilege of using cigarettes in this State

at a rate of 50 mills per cigarette so used. The tax taxes

herein imposed shall be in addition to all other occupation or

privilege taxes imposed by the State of Illinois or by any

political subdivision thereof or by any municipal corporation.

If the When any tax imposed herein terminates or has

terminated, distributors who have bought stamps while such tax

was in effect and who therefore paid such tax, but who can

show, to the Department's satisfaction, that they sold the

cigarettes to which they affixed such stamps after such tax had

terminated and did not recover the tax or its equivalent from

purchasers, shall be allowed by the Department to take credit

for such absorbed tax against subsequent tax stamp purchases

from the Department by such distributors.

When the word "tax" is used in this Act, it shall include

any tax or tax rate imposed by this Act and shall mean the

singular of "tax" or the plural "taxes" as the context may

require.

Any retailer having cigarettes in its possession on July 1,

2019 to which tax stamps have been affixed is not required to

pay the additional tax that begins on July 1, 2019 imposed by

this amendatory Act of the 101st General Assembly on those

stamped cigarettes. Any distributor having cigarettes in his or

her possession on July 1, 2019 to which tax stamps have been

affixed, and any distributor having stamps in his or her

possession on July 1, 2019 that have not been affixed to

packages of cigarettes before July 1, 2019, is required to pay

the additional tax that begins on July 1, 2019 imposed by this

amendatory Act of the 101st General Assembly to the extent that

the volume of affixed and unaffixed stamps in the distributor's

possession on July 1, 2019 exceeds the average monthly volume

of cigarette stamps purchased by the distributor in calendar

year 2018. This payment, less the discount provided in Section

3, is due when the distributor first makes a purchase of

cigarette stamps on or after July 1, 2019 or on the first due

date of a return under this Act occurring on or after July 1,

2019, whichever occurs first. Those distributors may elect to

pay the additional tax on packages of cigarettes to which

stamps have been affixed and on any stamps in the distributor's

possession that have not been affixed to packages of cigarettes

in their possession on July 1, 2019 over a period not to exceed

12 months from the due date of the additional tax by notifying

the Department in writing. The first payment for distributors

making such election is due when the distributor first makes a

purchase of cigarette tax stamps on or after July 1, 2019 or on

the first due date of a return under this Act occurring on or

after July 1, 2019, whichever occurs first. Distributors making

such an election are not entitled to take the discount provided

in Section 3 on such payments.

Any distributor having cigarettes to which stamps have been

affixed in his possession for sale on the effective date of

this amendatory Act of 1989 shall not be required to pay the

additional tax imposed by this amendatory Act of 1989 on such

stamped cigarettes. Any distributor having cigarettes to which

stamps have been affixed in his or her possession for sale at

12:01 a.m. on the effective date of this amendatory Act of

1993, is required to pay the additional tax imposed by this

amendatory Act of 1993 on such stamped cigarettes. This payment

shall be due when the distributor first makes a purchase of

cigarette tax stamps after the effective date of this

amendatory Act of 1993, or on the first due date of a return

under this Act after the effective date of this amendatory Act

of 1993, whichever occurs first. Once a distributor tenders

payment of the additional tax to the Department, the

distributor may purchase stamps from the Department. Any

distributor having cigarettes to which stamps have been affixed

in his possession for sale on December 15, 1997 shall not be

required to pay the additional tax imposed by this amendatory

Act of 1997 on such stamped cigarettes.

Any distributor having cigarettes to which stamps have been

affixed in his or her possession for sale on July 1, 2002 shall

not be required to pay the additional tax imposed by this

amendatory Act of the 92nd General Assembly on those stamped

cigarettes.

Any retailer having cigarettes in his or her possession on

June 24, 2012 to which tax stamps have been affixed is not

required to pay the additional tax that begins on June 24, 2012

imposed by this amendatory Act of the 97th General Assembly on

those stamped cigarettes. Any distributor having cigarettes in

his or her possession on June 24, 2012 to which tax stamps have

been affixed, and any distributor having stamps in his or her

possession on June 24, 2012 that have not been affixed to

packages of cigarettes before June 24, 2012, is required to pay

the additional tax that begins on June 24, 2012 imposed by this

amendatory Act of the 97th General Assembly to the extent the

calendar year 2012 average monthly volume of cigarette stamps

in the distributor's possession exceeds the average monthly

volume of cigarette stamps purchased by the distributor in

calendar year 2011. This payment, less the discount provided in

Section 3, is due when the distributor first makes a purchase

of cigarette stamps on or after June 24, 2012 or on the first

due date of a return under this Act occurring on or after June

24, 2012, whichever occurs first. Those distributors may elect

to pay the additional tax on packages of cigarettes to which

stamps have been affixed and on any stamps in the distributor's

possession that have not been affixed to packages of cigarettes

over a period not to exceed 12 months from the due date of the

additional tax by notifying the Department in writing. The

first payment for distributors making such election is due when

the distributor first makes a purchase of cigarette tax stamps

on or after June 24, 2012 or on the first due date of a return

under this Act occurring on or after June 24, 2012, whichever

occurs first. Distributors making such an election are not

entitled to take the discount provided in Section 3 on such

payments.

(Source: P.A. 97-688, eff. 6-14-12.)

(35 ILCS 135/35) (from Ch. 120, par. 453.65)

Sec. 35. Distribution of receipts. All moneys received by

the Department under this Act shall be distributed as provided

in subsection (a) of Section 2 of the Cigarette Tax Act.

(Source: P.A. 88-535.)

Section 15-65. The Tobacco Products Tax Act of 1995 is

amended by changing Sections 10-5 and 10-10 as follows:

(35 ILCS 143/10-5)

Sec. 10-5. Definitions. For purposes of this Act:

"Business" means any trade, occupation, activity, or

enterprise engaged in, at any location whatsoever, for the

purpose of selling tobacco products.

"Cigarette" has the meaning ascribed to the term in Section

1 of the Cigarette Tax Act.

"Contraband little cigar" means:

(1) packages of little cigars containing 20 or 25

little cigars that do not bear a required tax stamp under

this Act;

(2) packages of little cigars containing 20 or 25

little cigars that bear a fraudulent, imitation, or

counterfeit tax stamp;

(3) packages of little cigars containing 20 or 25

little cigars that are improperly tax stamped, including

packages of little cigars that bear only a tax stamp of

another state or taxing jurisdiction; or

(4) packages of little cigars containing other than 20

or 25 little cigars in the possession of a distributor,

retailer or wholesaler, unless the distributor, retailer,

or wholesaler possesses, or produces within the time frame

provided in Section 10-27 or 10-28 of this Act, an invoice

from a stamping distributor, distributor, or wholesaler

showing that the tax on the packages has been or will be

paid.

"Correctional Industries program" means a program run by a

State penal institution in which residents of the penal

institution produce tobacco products for sale to persons

incarcerated in penal institutions or resident patients of a

State operated mental health facility.

"Department" means the Illinois Department of Revenue.

"Distributor" means any of the following:

(1) Any manufacturer or wholesaler in this State

engaged in the business of selling tobacco products who

sells, exchanges, or distributes tobacco products to

retailers or consumers in this State.

(2) Any manufacturer or wholesaler engaged in the

business of selling tobacco products from without this

State who sells, exchanges, distributes, ships, or

transports tobacco products to retailers or consumers

located in this State, so long as that manufacturer or

wholesaler has or maintains within this State, directly or

by subsidiary, an office, sales house, or other place of

business, or any agent or other representative operating

within this State under the authority of the person or

subsidiary, irrespective of whether the place of business

or agent or other representative is located here

permanently or temporarily.

(3) Any retailer who receives tobacco products on which

the tax has not been or will not be paid by another

distributor.

"Distributor" does not include any person, wherever

resident or located, who makes, manufactures, or fabricates

tobacco products as part of a Correctional Industries program

for sale to residents incarcerated in penal institutions or

resident patients of a State operated mental health facility.

"Electronic cigarette" means:

(1) any device that employs a battery or other

mechanism to heat a solution or substance to produce a

vapor or aerosol intended for inhalation;

(2) any cartridge or container of a solution or

substance intended to be used with or in the device or to

refill the device; or

(3) any solution or substance, whether or not it

contains nicotine, intended for use in the device.

"Electronic cigarette" includes, but is not limited to, any

electronic nicotine delivery system, electronic cigar,

electronic cigarillo, electronic pipe, electronic hookah, vape

pen, or similar product or device, and any component or part

that can be used to build the product or device. "Electronic

cigarette" does not include: cigarettes, as defined in Section

1 of the Cigarette Tax Act; any product approved by the United

States Food and Drug Administration for sale as a tobacco

cessation product, a tobacco dependence product, or for other

medical purposes that is marketed and sold solely for that

approved purpose; any asthma inhaler prescribed by a physician

for that condition that is marketed and sold solely for that

approved purpose; or any therapeutic product approved for use

under the Compassionate Use of Medical Cannabis Pilot Program

Act.

"Little cigar" means and includes any roll, made wholly or

in part of tobacco, where such roll has an integrated cellulose

acetate filter and weighs less than 4 pounds per thousand and

the wrapper or cover of which is made in whole or in part of

tobacco.

"Manufacturer" means any person, wherever resident or

located, who manufactures and sells tobacco products, except a

person who makes, manufactures, or fabricates tobacco products

as a part of a Correctional Industries program for sale to

persons incarcerated in penal institutions or resident

patients of a State operated mental health facility.

Beginning on January 1, 2013, "moist snuff" means any

finely cut, ground, or powdered tobacco that is not intended to

be smoked, but shall not include any finely cut, ground, or

powdered tobacco that is intended to be placed in the nasal

cavity.

"Person" means any natural individual, firm, partnership,

association, joint stock company, joint venture, limited

liability company, or public or private corporation, however

formed, or a receiver, executor, administrator, trustee,

conservator, or other representative appointed by order of any

court.

"Place of business" means and includes any place where

tobacco products are sold or where tobacco products are

manufactured, stored, or kept for the purpose of sale or

consumption, including any vessel, vehicle, airplane, train,

or vending machine.

"Retailer" means any person in this State engaged in the

business of selling tobacco products to consumers in this

State, regardless of quantity or number of sales.

"Sale" means any transfer, exchange, or barter in any

manner or by any means whatsoever for a consideration and

includes all sales made by persons.

"Stamp" or "stamps" mean the indicia required to be affixed

on a package of little cigars that evidence payment of the tax

on packages of little cigars containing 20 or 25 little cigars

under Section 10-10 of this Act. These stamps shall be the same

stamps used for cigarettes under the Cigarette Tax Act.

"Stamping distributor" means a distributor licensed under

this Act and also licensed as a distributor under the Cigarette

Tax Act or Cigarette Use Tax Act.

"Tobacco products" means any cigars, including little

cigars; cheroots; stogies; periques; granulated, plug cut,

crimp cut, ready rubbed, and other smoking tobacco; snuff

(including moist snuff) or snuff flour; cavendish; plug and

twist tobacco; fine-cut and other chewing tobaccos; shorts;

refuse scraps, clippings, cuttings, and sweeping of tobacco;

and other kinds and forms of tobacco, prepared in such manner

as to be suitable for chewing or smoking in a pipe or

otherwise, or both for chewing and smoking; but does not

include cigarettes as defined in Section 1 of the Cigarette Tax

Act or tobacco purchased for the manufacture of cigarettes by

cigarette distributors and manufacturers defined in the

Cigarette Tax Act and persons who make, manufacture, or

fabricate cigarettes as a part of a Correctional Industries

program for sale to residents incarcerated in penal

institutions or resident patients of a State operated mental

health facility.

Beginning on July 1, 2019, "tobacco products" also includes

electronic cigarettes.

"Wholesale price" means the established list price for

which a manufacturer sells tobacco products to a distributor,

before the allowance of any discount, trade allowance, rebate,

or other reduction. In the absence of such an established list

price, the manufacturer's invoice price at which the

manufacturer sells the tobacco product to unaffiliated

distributors, before any discounts, trade allowances, rebates,

or other reductions, shall be presumed to be the wholesale

price.

"Wholesaler" means any person, wherever resident or

located, engaged in the business of selling tobacco products to

others for the purpose of resale. "Wholesaler", when used in

this Act, does not include a person licensed as a distributor

under Section 10-20 of this Act unless expressly stated in this

Act.

(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13;

98-1055, eff. 1-1-16.)

(35 ILCS 143/10-10)

Sec. 10-10. Tax imposed.

(a) Except as otherwise provided in this Section with

respect to little cigars, on the first day of the third month

after the month in which this Act becomes law, a tax is imposed

on any person engaged in business as a distributor of tobacco

products, as defined in Section 10-5, at the rate of (i) 18% of

the wholesale price of tobacco products sold or otherwise

disposed of to retailers or consumers located in this State

prior to July 1, 2012 and (ii) 36% of the wholesale price of

tobacco products sold or otherwise disposed of to retailers or

consumers located in this State beginning on July 1, 2012;

except that, beginning on January 1, 2013, the tax on moist

snuff shall be imposed at a rate of $0.30 per ounce, and a

proportionate tax at the like rate on all fractional parts of

an ounce, sold or otherwise disposed of to retailers or

consumers located in this State; and except that, beginning

July 1, 2019, the tax on electronic cigarettes shall be imposed

at the rate of 15% of the wholesale price of electronic

cigarettes sold or otherwise disposed of to retailers or

consumers located in this State. The tax is in addition to all

other occupation or privilege taxes imposed by the State of

Illinois, by any political subdivision thereof, or by any

municipal corporation. However, the tax is not imposed upon any

activity in that business in interstate commerce or otherwise,

to the extent to which that activity may not, under the

Constitution and Statutes of the United States, be made the

subject of taxation by this State, and except that, beginning

July 1, 2013, the tax on little cigars shall be imposed at the

same rate, and the proceeds shall be distributed in the same

manner, as the tax imposed on cigarettes under the Cigarette

Tax Act. The tax is also not imposed on sales made to the

United States or any entity thereof.

(b) Notwithstanding subsection (a) of this Section,

stamping distributors of packages of little cigars containing

20 or 25 little cigars sold or otherwise disposed of in this

State shall remit the tax by purchasing tax stamps from the

Department and affixing them to packages of little cigars in

the same manner as stamps are purchased and affixed to

cigarettes under the Cigarette Tax Act, unless the stamping

distributor sells or otherwise disposes of those packages of

little cigars to another stamping distributor. Only persons

meeting the definition of "stamping distributor" contained in

Section 10-5 of this Act may affix stamps to packages of little

cigars containing 20 or 25 little cigars. Stamping distributors

may not sell or dispose of little cigars at retail to consumers

or users at locations where stamping distributors affix stamps

to packages of little cigars containing 20 or 25 little cigars.

(c) The impact of the tax levied by this Act is imposed

upon distributors engaged in the business of selling tobacco

products to retailers or consumers in this State. Whenever a

stamping distributor brings or causes to be brought into this

State from without this State, or purchases from without or

within this State, any packages of little cigars containing 20

or 25 little cigars upon which there are no tax stamps affixed

as required by this Act, for purposes of resale or disposal in

this State to a person not a stamping distributor, then such

stamping distributor shall pay the tax to the Department and

add the amount of the tax to the price of such packages sold by

such stamping distributor. Payment of the tax shall be

evidenced by a stamp or stamps affixed to each package of

little cigars containing 20 or 25 little cigars.

Stamping distributors paying the tax to the Department on

packages of little cigars containing 20 or 25 little cigars

sold to other distributors, wholesalers or retailers shall add

the amount of the tax to the price of the packages of little

cigars containing 20 or 25 little cigars sold by such stamping

distributors.

(d) Beginning on January 1, 2013, the tax rate imposed per

ounce of moist snuff may not exceed 15% of the tax imposed upon

a package of 20 cigarettes pursuant to the Cigarette Tax Act.

(e) All moneys received by the Department under this Act

from sales occurring prior to July 1, 2012 shall be paid into

the Long-Term Care Provider Fund of the State Treasury. Of the

moneys received by the Department from sales occurring on or

after July 1, 2012, except for moneys received from the tax

imposed on the sale of little cigars, 50% shall be paid into

the Long-Term Care Provider Fund and 50% shall be paid into the

Healthcare Provider Relief Fund. Beginning July 1, 2013, all

moneys received by the Department under this Act from the tax

imposed on little cigars shall be distributed as provided in

subsection (a) of Section 2 of the Cigarette Tax Act.

(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)

Section 15-75. The Motor Vehicle Retail Installment Sales

Act is amended by changing Section 11.1 as follows:

(815 ILCS 375/11.1) (from Ch. 121 1/2, par. 571.1)

Sec. 11.1.

(a) A seller in a retail installment contract may add a

"documentary fee" for processing documents and performing

services related to closing of a sale. The maximum amount that

may be charged by a seller for a documentary fee is the base

documentary fee beginning January 1, 2008 until January 1,

2020, of $150, which shall be subject to an annual rate

adjustment equal to the percentage of change in the Bureau of

Labor Statistics Consumer Price Index. Every retail

installment contract under this Act shall contain or be

accompanied by a notice containing the following information:

"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.

A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO

BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED

TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING

JANUARY 1, 2008, WAS $150. THE MAXIMUM AMOUNT THAT MAY BE

CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF

$150, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL

TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS

CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."

(b) A seller in a retail installment contract may add a

"documentary fee" for processing documents and performing

services related to closing of a sale. The maximum amount that

may be charged by a seller for a documentary fee is the base

documentary fee beginning January 1, 2020, of $300, which shall

be subject to an annual rate adjustment equal to the percentage

of change in the Bureau of Labor Statistics Consumer Price

Index. Every retail installment contract under this Act shall

contain or be accompanied by a notice containing the following

information:

"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.

A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO

BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED

TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING

JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE

CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF

$300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL

TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS

CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."

(Source: P.A. 95-280, eff. 1-1-08.)

Article 20. Illinois Works Jobs Program Act

Section 20-1. Short title. This Article may be cited as the

Illinois Works Jobs Program Act. References in this Article to

"this Act" mean this Article.

Section 20-5. Findings. It is in the public policy interest

of the State to ensure that all Illinois residents have access

to State capital projects and careers in the construction

industry and building trades, including those who have been

historically underrepresented in those trades. To ensure that

those interests are met, the General Assembly hereby creates

the Illinois Works Preapprenticeship Program and the Illinois

Works Apprenticeship Initiative.

Section 20-10. Definitions.

"Apprentice" means a participant in an apprenticeship

program approved by and registered with the United States

Department of Labor's Bureau of Apprenticeship and Training.

"Apprenticeship program" means an apprenticeship and

training program approved by and registered with the United

States Department of Labor's Bureau of Apprenticeship and

Training.

"Bid credit" means a virtual dollar for a contractor or

subcontractor to use toward future bids for public works

contracts.

"Community-based organization" means a nonprofit

organization selected by the Department to participate in the

Illinois Works Preapprenticeship Program. To qualify as a

"community-based organization", the organization must

demonstrate the following:

(1) the ability to effectively serve diverse and

underrepresented populations, including by providing

employment services to such populations;

(2) knowledge of the construction and building trades;

(3) the ability to recruit, prescreen, and provide

preapprenticeship training to prepare workers for

employment in the construction and building trades; and

(4) a plan to provide the following:

(A) preparatory classes;

(B) workplace readiness skills, such as resume

preparation and interviewing techniques;

(C) strategies for overcoming barriers to entry

and completion of an apprenticeship program; and

(D) any prerequisites for acceptance into an

apprenticeship program.

"Contractor" means a person, corporation, partnership,

limited liability company, or joint venture entering into a

contract with the State or any State agency to construct a

public work.

"Department" means the Department of Commerce and Economic

Opportunity.

"Labor hours" means the total hours for workers who are

receiving an hourly wage and who are directly employed for the

public works project. "Labor hours" includes hours performed by

workers employed by the contractor and subcontractors on the

public works project. "Labor hours" does not include hours

worked by the forepersons, superintendents, owners, and

workers who are not subject to prevailing wage requirements.

"Minorities" means minority persons as defined in the

Business Enterprise for Minorities, Women, and Persons with

Disabilities Act.

"Public works" means all projects that constitute public

works under the Prevailing Wage Act.

"Subcontractor" means a person, corporation, partnership,

limited liability company, or joint venture that has contracted

with the contractor to perform all or part of the work to

construct a public work by a contractor.

"Underrepresented populations" means populations

identified by the Department that historically have had

barriers to entry or advancement in the workforce.

"Underrepresented populations" includes, but is not limited

to, minorities, women, and veterans.

Section 20-15. Illinois Works Preapprenticeship Program;

Illinois Works Bid Credit Program.

(a) The Illinois Works Preapprenticeship Program is

established and shall be administered by the Department. The

goal of the Illinois Works Preapprenticeship Program is to

create a network of community-based organizations throughout

the State that will recruit, prescreen, and provide

preapprenticeship skills training to create a qualified,

diverse pipeline of workers who are prepared for careers in the

construction and building trades. Upon completion of the

Illinois Works Preapprenticeship Program, the candidates will

be skilled and work-ready.

(b) There is created the Illinois Works Fund, a special

fund in the State treasury. The Illinois Works Fund shall be

administered by the Department. The Illinois Works Fund shall

be used to provide funding for community-based organizations

throughout the State. In addition to any other transfers that

may be provided for by law, on and after July 1, 2019 and until

June 30, 2020, at the direction of the Director of the

Governor's Office of Management and Budget, the State

Comptroller shall direct and the State Treasurer shall transfer

amounts not exceeding a total of $25,000,000 from the Rebuild

Illinois Projects Fund to the Illinois Works Fund.

(c) Each community-based organization that receives

funding from the Illinois Works Fund shall provide an annual

report to the Illinois Works Review Panel by April 1 of each

calendar year. The annual report shall include the following

information:

(1) a description of the community-based

organization's recruitment, screening, and training

efforts;

(2) the number of individuals who apply to, participate

in, and complete the community-based organization's

program, broken down by race, gender, age, and veteran

status; and

(3) the number of the individuals referenced in item

(2) of this subsection who are initially accepted and

placed into apprenticeship programs in the construction

and building trades.

(d) The Department shall create and administer the Illinois

Works Bid Credit Program that shall provide economic

incentives, through bid credits, to encourage contractors and

subcontractors to provide contracting and employment

opportunities to historically underrepresented populations in

the construction industry.

The Illinois Works Bid Credit Program shall allow

contractors and subcontractors to earn bid credits for use

toward future bids for public works projects in order to

increase the chances that the contractor and the subcontractors

will be selected.

Contractors or subcontractors may be eligible for bid

credits for employing apprentices who have completed the

Illinois Works Preapprenticeship Program. Contractors or

subcontractors shall earn bid credits at a rate established by

the Department and published on the Department's website,

including any appropriate caps.

The Illinois Works Credit Bank is hereby created and shall

be administered by the Department. The Illinois Works Credit

Bank shall track the bid credits.

A contractor or subcontractor who has been awarded bid

credits under any other State program for employing apprentices

who have completed the Illinois Works Preapprenticeship

Program is not eligible to receive bid credits under the

Illinois Works Bid Credit Program relating to the same

contract.

The Department shall report to the Illinois Works Review

Panel the following: (i) the number of bid credits awarded by

the Department; (ii) the number of bid credits submitted by the

contractor or subcontractor to the agency administering the

public works contract; and (iii) the number of bid credits

accepted by the agency for such contract. Any agency that

awards bid credits pursuant to the Illinois Works Credit Bank

Program shall report to the Department the number of bid

credits it accepted for the public works contract.

Upon a finding that a contractor or subcontractor has

reported falsified records to the Department in order to

fraudulently obtain bid credits, the Department shall

permanently bar the contractor or subcontractor from

participating in the Illinois Works Bid Credit Program and may

suspend the contractor or subcontractor from bidding on or

participating in any public works project. False or fraudulent

claims for payment relating to false bid credits may be subject

to damages and penalties under applicable law.

(e) The Department shall adopt any rules deemed necessary

to implement this Section.

Section 20-20. Illinois Works Apprenticeship Initiative.

(a) The Illinois Works Apprenticeship Initiative is

established and shall be administered by the Department.

(1) Subject to the exceptions set forth in subsection

(b) of this Section, apprentices shall be utilized on all

public works projects in accordance with this subsection

(a).

(2) For public works projects, the goal of the Illinois

Works Apprenticeship Initiative is that apprentices will

perform either 10% of the total labor hours actually worked

in each prevailing wage classification or 10% of the

estimated labor hours in each prevailing wage

classification, whichever is less.

(b) Before or during the term of a contract subject to this

Section, the Department may reduce or waive the goals set forth

in paragraph (2) of subsection (a). Prior to the Department

granting a request for a reduction or waiver, the Department

shall hold a public hearing and shall consult with the Business

Enterprise Council under the Business Enterprise for

Minorities, Women, and Persons with Disabilities Act and the

Chief Procurement Officer of the agency administering the

public works contract. The Department may grant a reduction or

waiver upon a determination that:

(1) the contractor or subcontractor has demonstrated

that insufficient apprentices are available;

(2) the reasonable and necessary requirements of the

contract do not allow the goal to be met;

(3) there is a disproportionately high ratio of

material costs to labor hours that makes meeting the goal

infeasible; or

(4) apprentice labor hour goals conflict with existing

requirements, including federal requirements, in

connection with the public work.

(c) Contractors and subcontractors must submit a

certification to the Department and the agency that is

administering the contract demonstrating that the contractor

or subcontractor has either:

(1) met the apprentice labor hour goals set forth in

paragraph (2) of subsection (a); or

(2) received a reduction or waiver pursuant to

subsection (b).

It shall be deemed to be a material breach of the contract

and entitle the State to declare a default, terminate the

contract, and exercise those remedies provided for in the

contract, at law, or in equity if the contractor or

subcontractor fails to submit the certification required in

this subsection or submits false or misleading information.

(d) No later than one year after the effective date of this

Act, and by April 1 of every calendar year thereafter, the

Department of Labor shall submit a report to the Illinois Works

Review Panel regarding the use of apprentices under the

Illinois Works Apprenticeship Initiative for public works

projects. To the extent it is available, the report shall

include the following information:

(1) the total number of labor hours on each project and

the percentage of labor hours actually worked by

apprentices on each public works project;

(2) the number of apprentices used in each public works

project, broken down by trade; and

(3) the number and percentage of minorities, women, and

veterans utilized as apprentices on each public works

project.

(e) The Department shall adopt any rules deemed necessary

to implement the Illinois Works Apprenticeship Initiative.

(f) The Illinois Works Apprenticeship Initiative shall not

interfere with any contracts or program in existence on the

effective date of this Act.

Section 20-25. The Illinois Works Review Panel.

(a) The Illinois Works Review Panel is created and shall be

comprised of 11 members, each serving 3-year terms. The Speaker

of the House of Representatives and the President of the Senate

shall each appoint 2 members. The Minority Leader of the House

of Representatives and the Minority Leader of the Senate shall

each appoint one member. The Director of Commerce and Economic

Opportunity, or his or her designee, shall serve as a member.

The Governor shall appoint the following individuals to serve

as members: a representative from a contractor organization; a

representative from a labor organization; and 2 members of the

public with workforce development expertise, one of whom shall

be a representative of a nonprofit organization that addresses

workforce development.

(b) The members of the Illinois Works Review Panel shall

make recommendations to the Department regarding

identification and evaluation of community-based

organizations.

(c) The Illinois Works Review Panel shall meet, at least

quarterly, to review and evaluate (i) the Illinois Works

Preapprenticeship Program and the Illinois Works

Apprenticeship Initiative, (ii) ideas to diversify the

workforce in the construction industry in Illinois, and (iii)

workforce demographic data collected by the Illinois

Department of Labor.

(d) All State contracts shall include a requirement that

the contractor and subcontractor shall, upon reasonable

notice, appear before and respond to requests for information

from the Illinois Works Review Panel.

(e) By August 1, 2020, and every August 1 thereafter, the

Illinois Works Review Panel shall report to the General

Assembly on its evaluation of the Illinois Works

Preapprenticeship Program and the Illinois Works

Apprenticeship initiative, including any recommended

modifications.

Section 20-900. The State Finance Act is amended by adding

Section 5.895 as follows:

(30 ILCS 105/5.895 new)

Sec. 5.895. The Illinois Works Fund.

Section 20-905. The Illinois Procurement Code is amended by

changing Section 20-10 as follows:

(30 ILCS 500/20-10)

(Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,

98-1076, 99-906 and 100-43)

Sec. 20-10. Competitive sealed bidding; reverse auction.

(a) Conditions for use. All contracts shall be awarded by

competitive sealed bidding except as otherwise provided in

Section 20-5.

(b) Invitation for bids. An invitation for bids shall be

issued and shall include a purchase description and the

material contractual terms and conditions applicable to the

procurement.

(c) Public notice. Public notice of the invitation for bids

shall be published in the Illinois Procurement Bulletin at

least 14 calendar days before the date set in the invitation

for the opening of bids.

(d) Bid opening. Bids shall be opened publicly or through

an electronic procurement system in the presence of one or more

witnesses at the time and place designated in the invitation

for bids. The name of each bidder, including earned and applied

bid credit from the Illinois Works Jobs Program Act, the amount

of each bid, and other relevant information as may be specified

by rule shall be recorded. After the award of the contract, the

winning bid and the record of each unsuccessful bid shall be

open to public inspection.

(e) Bid acceptance and bid evaluation. Bids shall be

unconditionally accepted without alteration or correction,

except as authorized in this Code. Bids shall be evaluated

based on the requirements set forth in the invitation for bids,

which may include criteria to determine acceptability such as

inspection, testing, quality, workmanship, delivery, and

suitability for a particular purpose. Those criteria that will

affect the bid price and be considered in evaluation for award,

such as discounts, transportation costs, and total or life

cycle costs, shall be objectively measurable. The invitation

for bids shall set forth the evaluation criteria to be used.

(f) Correction or withdrawal of bids. Correction or

withdrawal of inadvertently erroneous bids before or after

award, or cancellation of awards of contracts based on bid

mistakes, shall be permitted in accordance with rules. After

bid opening, no changes in bid prices or other provisions of

bids prejudicial to the interest of the State or fair

competition shall be permitted. All decisions to permit the

correction or withdrawal of bids based on bid mistakes shall be

supported by written determination made by a State purchasing

officer.

(g) Award. The contract shall be awarded with reasonable

promptness by written notice to the lowest responsible and

responsive bidder whose bid meets the requirements and criteria

set forth in the invitation for bids, except when a State

purchasing officer determines it is not in the best interest of

the State and by written explanation determines another bidder

shall receive the award. The explanation shall appear in the

appropriate volume of the Illinois Procurement Bulletin. The

written explanation must include:

(1) a description of the agency's needs;

(2) a determination that the anticipated cost will be

fair and reasonable;

(3) a listing of all responsible and responsive

bidders; and

(4) the name of the bidder selected, the total contract

price, and the reasons for selecting that bidder.

Each chief procurement officer may adopt guidelines to

implement the requirements of this subsection (g).

The written explanation shall be filed with the Legislative

Audit Commission and the Procurement Policy Board, and be made

available for inspection by the public, within 30 calendar days

after the agency's decision to award the contract.

(h) Multi-step sealed bidding. When it is considered

impracticable to initially prepare a purchase description to

support an award based on price, an invitation for bids may be

issued requesting the submission of unpriced offers to be

followed by an invitation for bids limited to those bidders

whose offers have been qualified under the criteria set forth

in the first solicitation.

(i) Alternative procedures. Notwithstanding any other

provision of this Act to the contrary, the Director of the

Illinois Power Agency may create alternative bidding

procedures to be used in procuring professional services under

Section 1-56, subsections (a) and (c) of Section 1-75 and

subsection (d) of Section 1-78 of the Illinois Power Agency Act

and Section 16-111.5(c) of the Public Utilities Act and to

procure renewable energy resources under Section 1-56 of the

Illinois Power Agency Act. These alternative procedures shall

be set forth together with the other criteria contained in the

invitation for bids, and shall appear in the appropriate volume

of the Illinois Procurement Bulletin.

(j) Reverse auction. Notwithstanding any other provision

of this Section and in accordance with rules adopted by the

chief procurement officer, that chief procurement officer may

procure supplies or services through a competitive electronic

auction bidding process after the chief procurement officer

determines that the use of such a process will be in the best

interest of the State. The chief procurement officer shall

publish that determination in his or her next volume of the

Illinois Procurement Bulletin.

An invitation for bids shall be issued and shall include

(i) a procurement description, (ii) all contractual terms,

whenever practical, and (iii) conditions applicable to the

procurement, including a notice that bids will be received in

an electronic auction manner.

Public notice of the invitation for bids shall be given in

the same manner as provided in subsection (c).

Bids shall be accepted electronically at the time and in

the manner designated in the invitation for bids. During the

auction, a bidder's price shall be disclosed to other bidders.

Bidders shall have the opportunity to reduce their bid prices

during the auction. At the conclusion of the auction, the

record of the bid prices received and the name of each bidder

shall be open to public inspection.

After the auction period has terminated, withdrawal of bids

shall be permitted as provided in subsection (f).

The contract shall be awarded within 60 calendar days after

the auction by written notice to the lowest responsible bidder,

or all bids shall be rejected except as otherwise provided in

this Code. Extensions of the date for the award may be made by

mutual written consent of the State purchasing officer and the

lowest responsible bidder.

This subsection does not apply to (i) procurements of

professional and artistic services, (ii) telecommunications

services, communication services, and information services,

and (iii) contracts for construction projects, including

design professional services.

(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)

(Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,

98-1076, 99-906, and 100-43)

Sec. 20-10. Competitive sealed bidding; reverse auction.

(a) Conditions for use. All contracts shall be awarded by

competitive sealed bidding except as otherwise provided in

Section 20-5.

(b) Invitation for bids. An invitation for bids shall be

issued and shall include a purchase description and the

material contractual terms and conditions applicable to the

procurement.

(c) Public notice. Public notice of the invitation for bids

shall be published in the Illinois Procurement Bulletin at

least 14 calendar days before the date set in the invitation

for the opening of bids.

(d) Bid opening. Bids shall be opened publicly or through

an electronic procurement system in the presence of one or more

witnesses at the time and place designated in the invitation

for bids. The name of each bidder, including earned and applied

bid credit from the Illinois Works Jobs Program Act, the amount

of each bid, and other relevant information as may be specified

by rule shall be recorded. After the award of the contract, the

winning bid and the record of each unsuccessful bid shall be

open to public inspection.

(e) Bid acceptance and bid evaluation. Bids shall be

unconditionally accepted without alteration or correction,

except as authorized in this Code. Bids shall be evaluated

based on the requirements set forth in the invitation for bids,

which may include criteria to determine acceptability such as

inspection, testing, quality, workmanship, delivery, and

suitability for a particular purpose. Those criteria that will

affect the bid price and be considered in evaluation for award,

such as discounts, transportation costs, and total or life

cycle costs, shall be objectively measurable. The invitation

for bids shall set forth the evaluation criteria to be used.

(f) Correction or withdrawal of bids. Correction or

withdrawal of inadvertently erroneous bids before or after

award, or cancellation of awards of contracts based on bid

mistakes, shall be permitted in accordance with rules. After

bid opening, no changes in bid prices or other provisions of

bids prejudicial to the interest of the State or fair

competition shall be permitted. All decisions to permit the

correction or withdrawal of bids based on bid mistakes shall be

supported by written determination made by a State purchasing

officer.

(g) Award. The contract shall be awarded with reasonable

promptness by written notice to the lowest responsible and

responsive bidder whose bid meets the requirements and criteria

set forth in the invitation for bids, except when a State

purchasing officer determines it is not in the best interest of

the State and by written explanation determines another bidder

shall receive the award. The explanation shall appear in the

appropriate volume of the Illinois Procurement Bulletin. The

written explanation must include:

(1) a description of the agency's needs;

(2) a determination that the anticipated cost will be

fair and reasonable;

(3) a listing of all responsible and responsive

bidders; and

(4) the name of the bidder selected, the total contract

price, and the reasons for selecting that bidder.

Each chief procurement officer may adopt guidelines to

implement the requirements of this subsection (g).

The written explanation shall be filed with the Legislative

Audit Commission and the Procurement Policy Board, and be made

available for inspection by the public, within 30 days after

the agency's decision to award the contract.

(h) Multi-step sealed bidding. When it is considered

impracticable to initially prepare a purchase description to

support an award based on price, an invitation for bids may be

issued requesting the submission of unpriced offers to be

followed by an invitation for bids limited to those bidders

whose offers have been qualified under the criteria set forth

in the first solicitation.

(i) Alternative procedures. Notwithstanding any other

provision of this Act to the contrary, the Director of the

Illinois Power Agency may create alternative bidding

procedures to be used in procuring professional services under

subsections (a) and (c) of Section 1-75 and subsection (d) of

Section 1-78 of the Illinois Power Agency Act and Section

16-111.5(c) of the Public Utilities Act and to procure

renewable energy resources under Section 1-56 of the Illinois

Power Agency Act. These alternative procedures shall be set

forth together with the other criteria contained in the

invitation for bids, and shall appear in the appropriate volume

of the Illinois Procurement Bulletin.

(j) Reverse auction. Notwithstanding any other provision

of this Section and in accordance with rules adopted by the

chief procurement officer, that chief procurement officer may

procure supplies or services through a competitive electronic

auction bidding process after the chief procurement officer

determines that the use of such a process will be in the best

interest of the State. The chief procurement officer shall

publish that determination in his or her next volume of the

Illinois Procurement Bulletin.

An invitation for bids shall be issued and shall include

(i) a procurement description, (ii) all contractual terms,

whenever practical, and (iii) conditions applicable to the

procurement, including a notice that bids will be received in

an electronic auction manner.

Public notice of the invitation for bids shall be given in

the same manner as provided in subsection (c).

Bids shall be accepted electronically at the time and in

the manner designated in the invitation for bids. During the

auction, a bidder's price shall be disclosed to other bidders.

Bidders shall have the opportunity to reduce their bid prices

during the auction. At the conclusion of the auction, the

record of the bid prices received and the name of each bidder

shall be open to public inspection.

After the auction period has terminated, withdrawal of bids

shall be permitted as provided in subsection (f).

The contract shall be awarded within 60 calendar days after

the auction by written notice to the lowest responsible bidder,

or all bids shall be rejected except as otherwise provided in

this Code. Extensions of the date for the award may be made by

mutual written consent of the State purchasing officer and the

lowest responsible bidder.

This subsection does not apply to (i) procurements of

professional and artistic services, (ii) telecommunications

services, communication services, and information services,

and (iii) contracts for construction projects, including

design professional services.

(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)

Section 20-910. The Prevailing Wage Act is amended by

changing Section 5 as follows:

(820 ILCS 130/5) (from Ch. 48, par. 39s-5)

(Text of Section before amendment by P.A. 100-1177)

Sec. 5. Certified payroll.

(a) Any contractor and each subcontractor who participates

in public works shall:

(1) make and keep, for a period of not less than 3

years from the date of the last payment made before January

1, 2014 (the effective date of Public Act 98-328) and for a

period of 5 years from the date of the last payment made on

or after January 1, 2014 (the effective date of Public Act

98-328) on a contract or subcontract for public works,

records of all laborers, mechanics, and other workers

employed by them on the project; the records shall include

(i) the worker's name, (ii) the worker's address, (iii) the

worker's telephone number when available, (iv) the

worker's social security number, (v) the worker's

classification or classifications, (vi) the worker's skill

level, such as apprentice or journeyman, (vii) (vi) the

worker's gross and net wages paid in each pay period,

(viii) (vii) the worker's number of hours worked each day,

(ix) (viii) the worker's starting and ending times of work

each day, (x) (ix) the worker's hourly wage rate, (xi) (x)

the worker's hourly overtime wage rate, (xii) (xi) the

worker's hourly fringe benefit rates, (xiii) (xii) the name

and address of each fringe benefit fund, (xiv) (xiii) the

plan sponsor of each fringe benefit, if applicable, and

(xv) (xiv) the plan administrator of each fringe benefit,

if applicable; and

(2) no later than the 15th day of each calendar month

file a certified payroll for the immediately preceding

month with the public body in charge of the project. A

certified payroll must be filed for only those calendar

months during which construction on a public works project

has occurred. The certified payroll shall consist of a

complete copy of the records identified in paragraph (1) of

this subsection (a), but may exclude the starting and

ending times of work each day. The certified payroll shall

be accompanied by a statement signed by the contractor or

subcontractor or an officer, employee, or agent of the

contractor or subcontractor which avers that: (i) he or she

has examined the certified payroll records required to be

submitted by the Act and such records are true and

accurate; (ii) the hourly rate paid to each worker is not

less than the general prevailing rate of hourly wages

required by this Act; and (iii) the contractor or

subcontractor is aware that filing a certified payroll that

he or she knows to be false is a Class A misdemeanor. A

general contractor is not prohibited from relying on the

certification of a lower tier subcontractor, provided the

general contractor does not knowingly rely upon a

subcontractor's false certification. Any contractor or

subcontractor subject to this Act and any officer,

employee, or agent of such contractor or subcontractor

whose duty as such officer, employee, or agent it is to

file such certified payroll who willfully fails to file

such a certified payroll on or before the date such

certified payroll is required by this paragraph to be filed

and any person who willfully files a false certified

payroll that is false as to any material fact is in

violation of this Act and guilty of a Class A misdemeanor.

The public body in charge of the project shall keep the

records submitted in accordance with this paragraph (2) of

subsection (a) before January 1, 2014 (the effective date

of Public Act 98-328) for a period of not less than 3

years, and the records submitted in accordance with this

paragraph (2) of subsection (a) on or after January 1, 2014

(the effective date of Public Act 98-328) for a period of 5

years, from the date of the last payment for work on a

contract or subcontract for public works. The records

submitted in accordance with this paragraph (2) of

subsection (a) shall be considered public records, except

an employee's address, telephone number, and social

security number, and made available in accordance with the

Freedom of Information Act. The public body shall accept

any reasonable submissions by the contractor that meet the

requirements of this Section.

A contractor, subcontractor, or public body may retain

records required under this Section in paper or electronic

format.

(b) Upon 7 business days' notice, the contractor and each

subcontractor shall make available for inspection and copying

at a location within this State during reasonable hours, the

records identified in paragraph (1) of subsection (a) of this

Section to the public body in charge of the project, its

officers and agents, the Director of Labor and his deputies and

agents, and to federal, State, or local law enforcement

agencies and prosecutors.

(c) A contractor or subcontractor who remits contributions

to fringe benefit funds that are jointly maintained and jointly

governed by one or more employers and one or more labor

organizations in accordance with the federal Labor Management

Relations Act shall make and keep certified payroll records

that include the information required under items (i) through

(ix) (viii) of paragraph (1) of subsection (a) only. However,

the information required under items (x) (ix) through (xv)

(xiv) of paragraph (1) of subsection (a) shall be required for

any contractor or subcontractor who remits contributions to a

fringe benefit fund that is not jointly maintained and jointly

governed by one or more employers and one or more labor

organizations in accordance with the federal Labor Management

Relations Act.

(Source: P.A. 97-571, eff. 1-1-12; 98-328, eff. 1-1-14; 98-482,

eff. 1-1-14; 98-756, eff. 7-16-14.)

(Text of Section after amendment by P.A. 100-1177)

Sec. 5. Certified payroll.

(a) Any contractor and each subcontractor who participates

in public works shall:

(1) make and keep, for a period of not less than 3

years from the date of the last payment made before January

1, 2014 (the effective date of Public Act 98-328) and for a

period of 5 years from the date of the last payment made on

or after January 1, 2014 (the effective date of Public Act

98-328) on a contract or subcontract for public works,

records of all laborers, mechanics, and other workers

employed by them on the project; the records shall include

(i) the worker's name, (ii) the worker's address, (iii) the

worker's telephone number when available, (iv) the last 4

digits of the worker's social security number, (v) the

worker's gender, (vi) the worker's race, (vii) the worker's

ethnicity, (viii) veteran status, (ix) the worker's

classification or classifications, (x) the worker's skill

level, such as apprentice or journeyman, (xi) (x) the

worker's gross and net wages paid in each pay period, (xii)

(xi) the worker's number of hours worked each day, (xiii)

(xii) the worker's starting and ending times of work each

day, (xiv) (xiii) the worker's hourly wage rate, (xv) (xiv)

the worker's hourly overtime wage rate, (xvi) (xv) the

worker's hourly fringe benefit rates, (xvii) (xvi) the name

and address of each fringe benefit fund, (xviii) (xvii) the

plan sponsor of each fringe benefit, if applicable, and

(xix) (xviii) the plan administrator of each fringe

benefit, if applicable; and

(2) no later than the 15th day of each calendar month

file a certified payroll for the immediately preceding

month with the public body in charge of the project until

the Department of Labor activates the database created

under Section 5.1 at which time certified payroll shall

only be submitted to that database, except for projects

done by State agencies that opt to have contractors submit

certified payrolls directly to that State agency. A State

agency that opts to directly receive certified payrolls

must submit the required information in a specified

electronic format to the Department of Labor no later than

10 days after the certified payroll was filed with the

State agency. A certified payroll must be filed for only

those calendar months during which construction on a public

works project has occurred. The certified payroll shall

consist of a complete copy of the records identified in

paragraph (1) of this subsection (a), but may exclude the

starting and ending times of work each day. The certified

payroll shall be accompanied by a statement signed by the

contractor or subcontractor or an officer, employee, or

agent of the contractor or subcontractor which avers that:

(i) he or she has examined the certified payroll records

required to be submitted by the Act and such records are

true and accurate; (ii) the hourly rate paid to each worker

is not less than the general prevailing rate of hourly

wages required by this Act; and (iii) the contractor or

subcontractor is aware that filing a certified payroll that

he or she knows to be false is a Class A misdemeanor. A

general contractor is not prohibited from relying on the

certification of a lower tier subcontractor, provided the

general contractor does not knowingly rely upon a

subcontractor's false certification. Any contractor or

subcontractor subject to this Act and any officer,

employee, or agent of such contractor or subcontractor

whose duty as such officer, employee, or agent it is to

file such certified payroll who willfully fails to file

such a certified payroll on or before the date such

certified payroll is required by this paragraph to be filed

and any person who willfully files a false certified

payroll that is false as to any material fact is in

violation of this Act and guilty of a Class A misdemeanor.

The public body in charge of the project shall keep the

records submitted in accordance with this paragraph (2) of

subsection (a) before January 1, 2014 (the effective date

of Public Act 98-328) for a period of not less than 3

years, and the records submitted in accordance with this

paragraph (2) of subsection (a) on or after January 1, 2014

(the effective date of Public Act 98-328) for a period of 5

years, from the date of the last payment for work on a

contract or subcontract for public works or until the

Department of Labor activates the database created under

Section 5.1, whichever is less. After the activation of the

database created under Section 5.1, the Department of Labor

rather than the public body in charge of the project shall

keep the records and maintain the database. The records

submitted in accordance with this paragraph (2) of

subsection (a) shall be considered public records, except

an employee's address, telephone number, social security

number, race, ethnicity, and gender, and made available in

accordance with the Freedom of Information Act. The public

body shall accept any reasonable submissions by the

contractor that meet the requirements of this Section.

A contractor, subcontractor, or public body may retain

records required under this Section in paper or electronic

format.

(b) Upon 7 business days' notice, the contractor and each

subcontractor shall make available for inspection and copying

at a location within this State during reasonable hours, the

records identified in paragraph (1) of subsection (a) of this

Section to the public body in charge of the project, its

officers and agents, the Director of Labor and his deputies and

agents, and to federal, State, or local law enforcement

agencies and prosecutors.

(c) A contractor or subcontractor who remits contributions

to fringe benefit funds that are jointly maintained and jointly

governed by one or more employers and one or more labor

organizations in accordance with the federal Labor Management

Relations Act shall make and keep certified payroll records

that include the information required under items (i) through

(viii) of paragraph (1) of subsection (a) only. However, the

information required under items (ix) through (xv) (xiv) of

paragraph (1) of subsection (a) shall be required for any

contractor or subcontractor who remits contributions to a

fringe benefit fund that is not jointly maintained and jointly

governed by one or more employers and one or more labor

organizations in accordance with the federal Labor Management

Relations Act.

(Source: P.A. 100-1177, eff. 6-1-19.)

Article 25. Sports Wagering Act

Section 25-1. Short title. This Article may be cited as the

Sports Wagering Act. References in this Article to "this Act"

mean this Article.

Section 25-5. Legislative findings. The General Assembly

recognizes the promotion of public safety is an important

consideration for sports leagues, teams, players, and fans at

large. All persons who present sporting contests are encouraged

to take reasonable measures to ensure the safety and security

of all involved or attending sporting contests. Persons who

present sporting contests are encouraged to establish codes of

conduct that forbid all persons associated with the sporting

contest from engaging in violent behavior and to hire, train,

and equip safety and security personnel to enforce those codes

of conduct. Persons who present sporting contests are further

encouraged to provide public notice of those codes of conduct.

Section 25-10. Definitions. As used in this Act:

"Adjusted gross sports wagering receipts" means a master

sports wagering licensee's gross sports wagering receipts,

less winnings paid to wagerers in such games.

"Athlete" means any current or former professional athlete

or collegiate athlete.

"Board" means the Illinois Gaming Board.

"Covered persons" includes athletes; umpires, referees,

and officials; personnel associated with clubs, teams,

leagues, and athletic associations; medical professionals

(including athletic trainers) who provide services to athletes

and players; and the family members and associates of these

persons where required to serve the purposes of this Act.

"Department" means the Department of the Lottery.

"Gaming facility" means a facility at which gambling

operations are conducted under the Illinois Gambling Act,

pari-mutuel wagering is conducted under the Illinois Horse

Racing Act of 1975, or sports wagering is conducted under this

Act.

"Official league data" means statistics, results,

outcomes, and other data related to a sports event obtained

pursuant to an agreement with the relevant sports governing

body, or an entity expressly authorized by the sports governing

body to provide such information to licensees, that authorizes

the use of such data for determining the outcome of tier 2

sports wagers on such sports events.

"Organization licensee" has the meaning given to that term

in the Illinois Horse Racing Act of 1975.

"Owners licensee" means the holder of an owners license

under the Illinois Gambling Act.

"Person" means an individual, partnership, committee,

association, corporation, or any other organization or group of

persons.

"Personal biometric data" means an athlete's information

derived from DNA, heart rate, blood pressure, perspiration

rate, internal or external body temperature, hormone levels,

glucose levels, hydration levels, vitamin levels, bone

density, muscle density, and sleep patterns.

"Prohibited conduct" includes any statement, action, and

other communication intended to influence, manipulate, or

control a betting outcome of a sporting contest or of any

individual occurrence or performance in a sporting contest in

exchange for financial gain or to avoid financial or physical

harm. "Prohibited conduct" includes statements, actions, and

communications made to a covered person by a third party, such

as a family member or through social media. "Prohibited

conduct" does not include statements, actions, or

communications made or sanctioned by a team or sports governing

body.

"Qualified applicant" means an applicant for a license

under this Act whose application meets the mandatory minimum

qualification criteria as required by the Board.

"Sporting contest" means a sports event or game on which

the State allows sports wagering to occur under this Act.

"Sports event" means a professional sport or athletic

event, a collegiate sport or athletic event, a motor race

event, or any other event or competition of relative skill

authorized by the Board under this Act.

"Sports facility" means a facility that hosts sports events

and holds a seating capacity greater than 17,000 persons.

"Sports governing body" means the organization that

prescribes final rules and enforces codes of conduct with

respect to a sports event and participants therein.

"Sports wagering" means accepting wagers on sports events

or portions of sports events, or on the individual performance

statistics of athletes in a sports event or combination of

sports events, by any system or method of wagering, including,

but not limited to, in person or over the Internet through

websites and on mobile devices. "Sports wagering" includes, but

is not limited to, single-game bets, teaser bets, parlays,

over-under, moneyline, pools, exchange wagering, in-game

wagering, in-play bets, proposition bets, and straight bets.

"Sports wagering account" means a financial record

established by a master sports wagering licensee for an

individual patron in which the patron may deposit and withdraw

funds for sports wagering and other authorized purchases and to

which the master sports wagering licensee may credit winnings

or other amounts due to that patron or authorized by that

patron.

"Tier 1 sports wager" means a sports wager that is

determined solely by the final score or final outcome of the

sports event and is placed before the sports event has begun.

"Tier 2 sports wager" means a sports wager that is not a

tier 1 sports wager.

"Wager" means a sum of money or thing of value risked on an

uncertain occurrence.

"Winning bidder" means a qualified applicant for a master

sports wagering license chosen through the competitive

selection process under Section 25-45.

Section 25-15. Board duties and powers.

(a) Except for sports wagering conducted under Section

25-70, the Board shall have the authority to regulate the

conduct of sports wagering under this Act.

(b) The Board may adopt any rules the Board considers

necessary for the successful implementation, administration,

and enforcement of this Act, except for Section 25-70. Rules

proposed by the Board may be adopted as emergency rules

pursuant to Section 5-45 of the Illinois Administrative

Procedure Act.

(c) The Board shall levy and collect all fees, surcharges,

civil penalties, and monthly taxes on adjusted gross sports

wagering receipts imposed by this Act and deposit all moneys

into the Sports Wagering Fund, except as otherwise provided

under this Act.

(d) The Board may exercise any other powers necessary to

enforce the provisions of this Act that it regulates and the

rules of the Board.

(e) The Board shall adopt rules for a license to be

employed by a master sports wagering licensee when the employee

works in a designated gaming area that has sports wagering or

performs duties in furtherance of or associated with the

operation of sports wagering by the master sports wagering

licensee (occupational license), which shall require an annual

license fee of $250. License fees shall be deposited into the

State Gaming Fund and used for the administration of this Act.

(f) The Board may require that licensees share, in real

time and at the sports wagering account level, information

regarding a wagerer, amount and type of wager, the time the

wager was placed, the location of the wager, including the

Internet protocol address, if applicable, the outcome of the

wager, and records of abnormal wagering activity. Information

shared under this subsection (f) must be submitted in the form

and manner as required by rule. If a sports governing body has

notified the Board that real-time information sharing for

wagers placed on its sports events is necessary and desirable,

licensees may share the same information in the form and manner

required by the Board by rule with the sports governing body or

its designee with respect to wagers on its sports events

subject to applicable federal, State, or local laws or

regulations, including, without limitation, privacy laws and

regulations. Such information may be provided in anonymized

form and may be used by a sports governing body solely for

integrity purposes. For purposes of this subsection (f),

"real-time" means a commercially reasonable periodic interval.

(g) A master sports wagering licensee, professional sports

team, league, or association, sports governing body, or

institution of higher education may submit to the Board in

writing a request to prohibit a type or form of wagering if the

master sports wagering licensee, professional sports team,

league, or association, sports governing body, or institution

of higher education believes that such wagering by type or form

is contrary to public policy, unfair to consumers, or affects

the integrity of a particular sport or the sports betting

industry. The Board shall grant the request upon a

demonstration of good cause from the requester and consultation

with licensees. The Board shall respond to a request pursuant

to this subsection (g) concerning a particular event before the

start of the event or, if it is not feasible to respond before

the start of the event, as soon as practicable.

(h) The Board and master sports wagering licensees may

cooperate with investigations conducted by sports governing

bodies or law enforcement agencies, including, but not limited

to, providing and facilitating the provision of account-level

betting information and audio or video files relating to

persons placing wagers.

(i) A master sports wagering licensee shall make

commercially reasonable efforts to promptly notify the Board

any information relating to:

(1) criminal or disciplinary proceedings commenced

against the master sports wagering licensee in connection

with its operations;

(2) abnormal wagering activity or patterns that may

indicate a concern with the integrity of a sports event or

sports events;

(3) any potential breach of the relevant sports

governing body's internal rules and codes of conduct

pertaining to sports wagering that a licensee has knowledge

of;

(4) any other conduct that corrupts a wagering outcome

of a sports event or sports events for purposes of

financial gain, including match fixing; and

(5) suspicious or illegal wagering activities,

including use of funds derived from illegal activity,

wagers to conceal or launder funds derived from illegal

activity, using agents to place wagers, and using false

identification.

A master sports wagering licensee shall also make

commercially reasonable efforts to promptly report information

relating to conduct described in paragraphs (2), (3), and (4)

of this subsection (i) to the relevant sports governing body.

Section 25-20. Licenses required.

(a) No person may engage in any activity in connection with

sports wagering in this State unless all necessary licenses

have been obtained in accordance with this Act and the rules of

the Board and the Department. The following licenses shall be

issued under this Act:

(1) master sports wagering license;

(2) occupational license;

(3) supplier license;

(4) management services provider license

(5) tier 2 official league data provider license; and

(6) central system provider license.

No person or entity may engage in a sports wagering

operation or activity without first obtaining the appropriate

license.

(b) An applicant for a license issued under this Act shall

submit an application to the Board in the form the Board

requires. The applicant shall submit fingerprints for a

national criminal records check by the Department of State

Police and the Federal Bureau of Investigation. The

fingerprints shall be furnished by the applicant's officers and

directors (if a corporation), members (if a limited liability

company), and partners (if a partnership). The fingerprints

shall be accompanied by a signed authorization for the release

of information by the Federal Bureau of Investigation. The

Board may require additional background checks on licensees

when they apply for license renewal, and an applicant convicted

of a disqualifying offense shall not be licensed.

(c) Each master sports wagering licensee shall display the

license conspicuously in the licensee's place of business or

have the license available for inspection by an agent of the

Board or a law enforcement agency.

(d) Each holder of an occupational license shall carry the

license and have some indicia of licensure prominently

displayed on his or her person when present in a gaming

facility licensed under this Act at all times, in accordance

with the rules of the Board.

(e) Each person licensed under this Act shall give the

Board written notice within 30 days after a material change to

information provided in the licensee's application for a

license or renewal.

Section 25-25. Sports wagering authorized.

(a) Notwithstanding any provision of law to the contrary,

the operation of sports wagering is only lawful when conducted

in accordance with the provisions of this Act and the rules of

the Illinois Gaming Board and the Department of the Lottery.

(b) A person placing a wager under this Act shall be at

least 21 years of age.

(c) A licensee under this Act may not accept a wager on a

minor league sports event.

(d) A licensee under this Act may not accept a wager for a

sports event involving an Illinois collegiate team.

(e) A licensee under this Act may only accept a wager from

a person physically located in the State.

(f) Master sports wagering licensees may use any data

source for determining the results of all tier 1 sports wagers.

(g) A sports governing body headquartered in the United

States may notify the Board that it desires to supply official

league data to master sports wagering licensees for determining

the results of tier 2 sports wagers. Such notification shall be

made in the form and manner as the Board may require. If a

sports governing body does not notify the Board of its desire

to supply official league data, a master sports wagering

licensee may use any data source for determining the results of

any and all tier 2 sports wagers on sports contests for that

sports governing body.

Within 30 days of a sports governing body notifying the

Board, master sports wagering licensees shall use only official

league data to determine the results of tier 2 sports wagers on

sports events sanctioned by that sports governing body, unless:

(1) the sports governing body or designee cannot provide a feed

of official league data to determine the results of a

particular type of tier 2 sports wager, in which case master

sports wagering licensees may use any data source for

determining the results of the applicable tier 2 sports wager

until such time as such data feed becomes available on

commercially reasonable terms; or (2) a master sports wagering

licensee can demonstrate to the Board that the sports governing

body or its designee cannot provide a feed of official league

data to the master sports wagering licensee on commercially

reasonable terms. During the pendency of the Board's

determination, such master sports wagering licensee may use any

data source for determining the results of any and all tier 2

sports wagers.

(h) A licensee under this Act may not accept wagers on a

kindergarten through 12th grade sports event.

Section 25-30. Master sports wagering license issued to an

organization licensee.

(a) An organization licensee may apply to the Board for a

master sports wagering license. To the extent permitted by

federal and State law, the Board shall actively seek to achieve

racial, ethnic, and geographic diversity when issuing master

sports wagering licenses to organization licensees and

encourage minority-owned businesses, women-owned businesses,

veteran-owned businesses, and businesses owned by persons with

disabilities to apply for licensure. Additionally, the report

published under subsection (m) of Section 25-45 shall impact

the issuance of the master sports wagering license to the

extent permitted by federal and State law.

For the purposes of this subsection (a), "minority-owned

business", "women-owned business", and "business owned by

persons with disabilities" have the meanings given to those

terms in Section 2 of the Business Enterprise for Minorities,

Women, and Persons with Disabilities Act.

(b) Except as otherwise provided in this subsection (b),

the initial license fee for a master sports wagering license

for an organization licensee is 5% of its handle from the

preceding calendar year or the lowest amount that is required

to be paid as an initial license fee by an owners licensee

under subsection (b) of Section 25-35, whichever is greater. No

initial license fee shall exceed $10,000,000. An organization

licensee licensed on the effective date of this Act shall pay

the initial master sports wagering license fee by July 1, 2020.

For an organization licensee licensed after the effective date

of this Act, the master sports wagering license fee shall be

$5,000,000, but the amount shall be adjusted 12 months after

the organization licensee begins racing operations based on 5%

of its handle from the first 12 months of racing operations.

The master sports wagering license is valid for 4 years.

(c) The organization licensee may renew the master sports

wagering license for a period of 4 years by paying a $1,000,000

renewal fee to the Board.

(d) An organization licensee issued a master sports

wagering license may conduct sports wagering:

(1) at its facility at which inter-track wagering is

conducted pursuant to an inter-track wagering license

under the Illinois Horse Racing Act of 1975;

(2) at 3 inter-track wagering locations if the

inter-track wagering location licensee from which it

derives its license is an organization licensee that is

issued a master sports wagering license; and

(3) over the Internet or through a mobile application.

(e) The sports wagering offered over the Internet or

through a mobile application shall only be offered under either

the same brand as the organization licensee is operating under

or a brand owned by a direct or indirect holding company that

owns at least an 80% interest in that organization licensee on

the effective date of this Act.

(f) Until issuance of the first license under Section

25-45, an individual must create a sports wagering account in

person at a facility under paragraph (1) or (2) of subsection

(d) to participate in sports wagering offered over the Internet

or through a mobile application.

Section 25-35. Master sports wagering license issued to an

owners licensee.

(a) An owners licensee may apply to the Board for a master

sports wagering license. To the extent permitted by federal and

State law, the Board shall actively seek to achieve racial,

ethnic, and geographic diversity when issuing master sports

wagering licenses to owners licensees and encourage

minority-owned businesses, women-owned businesses,

veteran-owned businesses, and businesses owned by persons with

disabilities to apply for licensure. Additionally, the report

published under subsection (m) of Section 25-45 shall impact

the issuance of the master sports wagering license to the

extent permitted by federal and State law.

For the purposes of this subsection (a), "minority-owned

business", "women-owned business", and "business owned by

persons with disabilities" have the meanings given to those

terms in Section 2 of the Business Enterprise for Minorities,

Women, and Persons with Disabilities Act.

(b) Except as otherwise provided in subsection (b-5), the

initial license fee for a master sports wagering license for an

owners licensee is 5% of its adjusted gross receipts from the

preceding calendar year. No initial license fee shall exceed

$10,000,000. An owners licensee licensed on the effective date

of this Act shall pay the initial master sports wagering

license fee by July 1, 2020. The master sports wagering license

is valid for 4 years.

(b-5) For an owners licensee licensed after the effective

date of this Act, the master sports wagering license fee shall

be $5,000,000, but the amount shall be adjusted 12 months after

the owners licensee begins gambling operations under the

Illinois Gambling Act based on 5% of its adjusted gross

receipts from the first 12 months of gambling operations. The

master sports wagering license is valid for 4 years.

(c) The owners licensee may renew the master sports

wagering license for a period of 4 years by paying a $1,000,000

renewal fee to the Board.

(d) An owners licensee issued a master sports wagering

license may conduct sports wagering:

(1) at its facility in this State that is authorized to

conduct gambling operations under the Illinois Gambling

Act; and

(2) over the Internet or through a mobile application.

(e) The sports wagering offered over the Internet or

through a mobile application shall only be offered under either

the same brand as the owners licensee is operating under or a

brand owned by a direct or indirect holding company that owns

at least an 80% interest in that owners licensee on the

effective date of this Act.

(f) Until issuance of the first license under Section

25-45, an individual must create a sports wagering account in

person at a facility under paragraph (1) of subsection (d) to

participate in sports wagering offered over the Internet or

through a mobile application.

Section 25-40. Master sports wagering license issued to a

sports facility.

(a) As used in this Section, "designee" means a master

sports wagering licensee under Section 25-30, 25-35, or 25-45

or a management services provider licensee.

(b) A sports facility or a designee contracted to operate

sports wagering at or within a 5-block radius of the sports

facility may apply to the Board for a master sports wagering

license. To the extent permitted by federal and State law, the

Board shall actively seek to achieve racial, ethnic, and

geographic diversity when issuing master sports wagering

licenses to sports facilities or their designees and encourage

minority-owned businesses, women-owned businesses,

veteran-owned businesses, and businesses owned by persons with

disabilities to apply for licensure. Additionally, the report

published under subsection (m) of Section 25-45 shall impact

the issuance of the master sports wagering license to the

extent permitted by federal and State law.

For the purposes of this subsection (b), "minority-owned

business", "women-owned business", and "business owned by

persons with disabilities" have the meanings given to those

terms in Section 2 of the Business Enterprise for Minorities,

Women, and Persons with Disabilities Act.

(c) The Board may issue up to 7 master sports wagering

licenses to sports facilities or their designees that meet the

requirements for licensure as determined by rule by the Board.

If more than 7 qualified applicants apply for a master sports

wagering license under this Section, the licenses shall be

granted in the order in which the applications were received.

If a license is denied, revoked, or not renewed, the Board may

begin a new application process and issue a license under this

Section in the order in which the application was received.

(d) The initial license fee for a master sports wagering

license for a sports facility is $10,000,000. The master sports

wagering license is valid for 4 years.

(e) The sports facility or its designee may renew the

master sports wagering license for a period of 4 years by

paying a $1,000,000 renewal fee to the Board.

(f) A sports facility or its designee issued a master

sports wagering license may conduct sports wagering at or

within a 5-block radius of the sports facility.

(g) A sports facility or its designee issued a master

sports wagering license may conduct sports wagering over the

Internet within the sports facility or within a 5-block radius

of the sports facility.

(h) The sports wagering offered by a sports facility or its

designee over the Internet or through a mobile application

shall be offered under the same brand as the sports facility is

operating under, the brand the designee is operating under, or

a combination thereof.

(i) Until issuance of the first license under Section

25-45, an individual must register in person at a sports

facility or the designee's facility to participate in sports

wagering offered over the Internet or through a mobile

application.

Section 25-45. Master sports wagering license issued to an

online sports wagering operator.

(a) The Board shall issue 3 master sports wagering licenses

to online sports wagering operators for a nonrefundable license

fee of $20,000,000 pursuant to an open and competitive

selection process. The master sports wagering license issued

under this Section may be renewed every 4 years upon payment of

a $1,000,000 renewal fee. To the extent permitted by federal

and State law, the Board shall actively seek to achieve racial,

ethnic, and geographic diversity when issuing master sports

wagering licenses under this Section and encourage

minority-owned businesses, women-owned businesses,

veteran-owned businesses, and businesses owned by persons with

disabilities to apply for licensure.

For the purposes of this subsection (a), "minority-owned

business", "women-owned business", and "business owned by

persons with disabilities" have the meanings given to those

terms in Section 2 of the Business Enterprise for Minorities,

Women, and Persons with Disabilities Act.

(b) Applications for the initial competitive selection

occurring after the effective date of this Act shall be

received by the Board within 540 days after the first license

is issued under this Act to qualify. The Board shall announce

the winning bidders for the initial competitive selection

within 630 days after the first license is issued under this

Act, and this time frame may be extended at the discretion of

the Board.

(c) The Board shall provide public notice of its intent to

solicit applications for master sports wagering licenses under

this Section by posting the notice, application instructions,

and materials on its website for at least 30 calendar days

before the applications are due. Failure by an applicant to

submit all required information may result in the application

being disqualified. The Board may notify an applicant that its

application is incomplete and provide an opportunity to cure by

rule. Application instructions shall include a brief overview

of the selection process and how applications are scored.

(d) To be eligible for a master sports wagering license

under this Section, an applicant must: (1) be at least 21 years

of age; (2) not have been convicted of a felony offense or a

violation of Article 28 of the Criminal Code of 1961 or the

Criminal Code of 2012 or a similar statute of any other

jurisdiction; (3) not have been convicted of a crime involving

dishonesty or moral turpitude; (4) have demonstrated a level of

skill or knowledge that the Board determines to be necessary in

order to operate sports wagering; and (5) have met standards

for the holding of a license as adopted by rules of the Board.

The Board may adopt rules to establish additional

qualifications and requirements to preserve the integrity and

security of sports wagering in this State and to promote and

maintain a competitive sports wagering market. After the close

of the application period, the Board shall determine whether

the applications meet the mandatory minimum qualification

criteria and conduct a comprehensive, fair, and impartial

evaluation of all qualified applications.

(e) The Board shall open all qualified applications in a

public forum and disclose the applicants' names. The Board

shall summarize the terms of the proposals and make the

summaries available to the public on its website.

(f) Not more than 90 days after the publication of the

qualified applications, the Board shall identify the winning

bidders. In granting the licenses, the Board may give favorable

consideration to qualified applicants presenting plans that

provide for economic development and community engagement. To

the extent permitted by federal and State law, the Board may

give favorable consideration to qualified applicants

demonstrating commitment to diversity in the workplace.

(g) Upon selection of the winning bidders, the Board shall

have a reasonable period of time to ensure compliance with all

applicable statutory and regulatory criteria before issuing

the licenses. If the Board determines a winning bidder does not

satisfy all applicable statutory and regulatory criteria, the

Board shall select another bidder from the remaining qualified

applicants.

(h) Nothing in this Section is intended to confer a

property or other right, duty, privilege, or interest entitling

an applicant to an administrative hearing upon denial of an

application.

(i) Upon issuance of a master sports wagering license to a

winning bidder, the information and plans provided in the

application become a condition of the license. A master sports

wagering licensee under this Section has a duty to disclose any

material changes to the application. Failure to comply with the

conditions or requirements in the application may subject the

master sports wagering licensee under this Section to

discipline, including, but not limited to, fines, suspension,

and revocation of its license, pursuant to rules adopted by the

Board.

(j) The Board shall disseminate information about the

licensing process through media demonstrated to reach large

numbers of business owners and entrepreneurs who are

minorities, women, veterans, and persons with disabilities.

(k) The Department of Commerce and Economic Opportunity, in

conjunction with the Board, shall conduct ongoing, thorough,

and comprehensive outreach to businesses owned by minorities,

women, veterans, and persons with disabilities about

contracting and entrepreneurial opportunities in sports

wagering. This outreach shall include, but not be limited to:

(1) cooperating and collaborating with other State

boards, commissions, and agencies; public and private

universities and community colleges; and local governments

to target outreach efforts; and

(2) working with organizations serving minorities,

women, and persons with disabilities to establish and

conduct training for employment in sports wagering.

(l) The Board shall partner with the Department of Labor,

the Department of Financial and Professional Regulation, and

the Department of Commerce and Economic Opportunity to identify

employment opportunities within the sports wagering industry

for job seekers and dislocated workers.

(m) By March 1, 2020, the Board shall prepare a request for

proposals to conduct a study of the online sports wagering

industry and market to determine whether there is a compelling

interest in implementing remedial measures, including the

application of the Business Enterprise Program under the

Business Enterprise for Minorities, Women, and Persons with

Disabilities Act or a similar program to assist minorities,

women, and persons with disabilities in the sports wagering

industry.

As a part of the study, the Board shall evaluate race and

gender-neutral programs or other methods that may be used to

address the needs of minority and women applicants and

minority-owned and women-owned businesses seeking to

participate in the sports wagering industry. The Board shall

submit to the General Assembly and publish on its website the

results of this study by August 1, 2020.

If, as a result of the study conducted under this

subsection (m), the Board finds that there is a compelling

interest in implementing remedial measures, the Board may adopt

rules, including emergency rules, to implement remedial

measures, if necessary and to the extent permitted by State and

federal law, based on the findings of the study conducted under

this subsection (m).

Section 25-50. Supplier license.

(a) The Board may issue a supplier license to a person to

sell or lease sports wagering equipment, systems, or other

gaming items to conduct sports wagering and offer services

related to the equipment or other gaming items and data to a

master sports wagering licensee while the license is active.

(b) The Board may adopt rules establishing additional

requirements for a supplier and any system or other equipment

utilized for sports wagering. The Board may accept licensing by

another jurisdiction that it specifically determines to have

similar licensing requirements as evidence the applicant meets

supplier licensing requirements.

(c) An applicant for a supplier license shall demonstrate

that the equipment, system, or services that the applicant

plans to offer to the master sports wagering licensee conforms

to standards established by the Board and applicable State law.

The Board may accept approval by another jurisdiction that it

specifically determines have similar equipment standards as

evidence the applicant meets the standards established by the

Board and applicable State law.

(d) Applicants shall pay to the Board a nonrefundable

license and application fee in the amount of $150,000. After

the initial 4-year term, the Board shall renew supplier

licenses annually thereafter. Renewal of a supplier license

shall be granted to a renewal applicant who has continued to

comply with all applicable statutory and regulatory

requirements, upon submission of the Board-issued renewal form

and payment of a $150,000 renewal fee.

(e) A supplier shall submit to the Board a list of all

sports wagering equipment and services sold, delivered, or

offered to a master sports wagering licensee in this State, as

required by the Board, all of which must be tested and approved

by an independent testing laboratory approved by the Board. A

master sports wagering licensee may continue to use supplies

acquired from a licensed supplier, even if a supplier's license

expires or is otherwise canceled, unless the Board finds a

defect in the supplies.

Section 25-55. Management services provider license.

(a) A master sports wagering licensee may contract with an

entity to conduct that operation in accordance with the rules

of the Board and the provisions of this Act. That entity shall

obtain a license as a management services provider before the

execution of any such contract, and the management services

provider license shall be issued pursuant to the provisions of

this Act and any rules adopted by the Board.

(b) Each applicant for a management services provider

license shall meet all requirements for licensure and pay a

nonrefundable license and application fee of $1,000,000. The

Board may adopt rules establishing additional requirements for

an authorized management services provider. The Board may

accept licensing by another jurisdiction that it specifically

determines to have similar licensing requirements as evidence

the applicant meets authorized management services provider

licensing requirements.

(c) Management services provider licenses shall be renewed

every 4 years to licensees who continue to be in compliance

with all requirements and who pay the renewal fee of $500,000.

(d) A person who shares in revenue shall be licensed under

this Section.

Section 25-60. Tier 2 official league data provider

license.

(a) A sports governing body or a sports league,

organization, or association or a vendor authorized by such

sports governing body or sports league, organization, or

association to distribute tier 2 official league data may apply

to the Board for a tier 2 official league data provider

license.

(b) A tier 2 official league data provider licensee may

provide a master sports wagering licensee with official league

data for tier 2 sports wagers. No sports governing body or

sports league, organization, or association or a vendor

authorized by such sports governing body or sports league,

organization, or association may provide tier 2 official league

data to a master sports wagering licensee without a tier 2

official league data provider license.

Notwithstanding the provisions of this Section, the

licensing and fee requirements of this Section shall not apply

if, under subsection (g) of Section 25-25, master sports

wagering licensees are not required to use official league data

to determine the results of tier 2 sports wagers.

(c) The initial license fee for a tier 2 official league

data provider license is payable to the Board at the end of the

first year of licensure based on the amount of data sold to

master sports wagering licensees as official league data as

follows:

(1) for data sales up to and including $500,000, the

fee is $30,000;

(2) for data sales in excess of $500,000 and up to and

including $750,000, the fee is $60,000;

(3) for data sales in excess of $750,000 and up to and

including $1,000,000, the fee is $125,000;

(4) for data sales in excess of $1,000,000 and up to

and including $1,500,000, the fee is $250,000;

(5) for data sales in excess of $1,500,000 and up to

and including $2,000,000, the fee is $375,000; and

(6) for data sales in excess of $2,000,000, the fee is

$500,000.

The license is valid for 3 years.

(d) The tier 2 official league data provider licensee may

renew the license for 3 years by paying a renewal fee to the

Board based on the amount of data sold to master sports

wagering licensees as official league data in the immediately

preceding year as provided in paragraphs (1) through (6) of

subsection (c).

Section 25-65. Sports wagering at a sports facility. Sports

wagering may be offered in person at or within a 5-block radius

of a sports facility if sports wagering is offered by a

designee, as defined in Section 25-40, and that designee has

received written authorization from the relevant sports team

that plays its home contests at the sports facility. If more

than one professional sports team plays its home contests at

the same sports facility, written authorization is required

from all sports teams that play home contests at the sports

facility.

Section 25-70. Lottery sports wagering pilot program.

(a) As used in this Section:

"Central system" means the hardware, software,

peripherals, and network components provided by the

Department's central system provider that link and support all

required sports lottery terminals and the central site and that

are unique and separate from the lottery central system for

draw and instant games.

"Central system provider" means an individual,

partnership, corporation, or limited liability company that

has been licensed for the purpose of providing and maintaining

a central system and the related management facilities

specifically for the management of sports lottery terminals.

"Electronic card" means a card purchased from a lottery

retailer.

"Lottery retailer" means a location licensed by the

Department to sell lottery tickets or shares.

"Sports lottery systems" means systems provided by the

central system provider consisting of sports wagering

products, risk management, operations, and support services.

"Sports lottery terminal" means a terminal linked to the

central system in which bills or coins are deposited or an

electronic card is inserted in order to place wagers on a

sports event and lottery offerings.

(b) The Department shall issue one central system provider

license pursuant to an open and competitive bidding process

that uses the following procedures:

(1) The Department shall make applications for the

central system provider license available to the public and

allow a reasonable time for applicants to submit

applications to the Department.

(2) During the filing period for central system

provider license applications, the Department may retain

professional services to assist the Department in

conducting the open and competitive bidding process.

(3) After receiving all of the bid proposals, the

Department shall open all of the proposals in a public

forum and disclose the prospective central system provider

names and venture partners, if any.

(4) The Department shall summarize the terms of the bid

proposals and may make this summary available to the

public.

(5) The Department shall evaluate the bid proposals

within a reasonable time and select no more than 3 final

applicants to make presentations of their bid proposals to

the Department.

(6) The final applicants shall make their

presentations to the Department on the same day during an

open session of the Department.

(7) As soon as practicable after the public

presentations by the final applicants, the Department, in

its discretion, may conduct further negotiations among the

3 final applicants. At the conclusion of such negotiations,

the Department shall select the winning bid.

(8) Upon selection of the winning bid, the Department

shall evaluate the winning bid within a reasonable period

of time for licensee suitability in accordance with all

applicable statutory and regulatory criteria.

(9) If the winning bidder is unable or otherwise fails

to consummate the transaction, (including if the

Department determines that the winning bidder does not

satisfy the suitability requirements), the Department may,

on the same criteria, select from the remaining bidders.

(10) The winning bidder shall pay $20,000,000 to the

Department upon being issued the central system provider

license.

(c) Every sports lottery terminal offered in this State for

play shall first be tested and approved pursuant to the rules

of the Department, and each sports lottery terminal offered in

this State for play shall conform to an approved model. For the

examination of sports lottery terminals and associated

equipment as required by this Section, the central system

provider may utilize the services of one or more independent

outside testing laboratories that have been accredited by a

national accreditation body and that, in the judgment of the

Department, are qualified to perform such examinations. Every

sports lottery terminal offered in this State for play must

meet minimum standards set by an independent outside testing

laboratory approved by the Department.

(d) During the first 360 days after the effective date of

this Act, sport lottery terminals may be placed in no more than

2,500 Lottery retail locations in the State. Sports lottery

terminals may be placed in an additional 2,500 Lottery retail

locations during the second year after the effective date of

this Act.

(e) A sports lottery terminal may not directly dispense

coins, cash, tokens, or any other article of exchange or value

except for receipt tickets. Tickets shall be dispensed by

pressing the ticket dispensing button on the sports lottery

terminal at the end of the placement of one's wager or wagers.

The ticket shall indicate the total amount wagered, odds for

each wager placed, and the cash award for each bet placed, the

time of day in a 24-hour format showing hours and minutes, the

date, the terminal serial number, the sequential number of the

ticket, and an encrypted validation number from which the

validity of the prize may be determined. The player shall turn

in this ticket to the appropriate person at a lottery retailer

to receive the cash award.

(f) No lottery retailer may cause or permit any person

under the age of 21 years to use a sports lottery terminal or

sports wagering application. A lottery retailer who knowingly

causes or permits a person under the age of 21 years to use a

sports lottery terminal or sports wagering application is

guilty of a business offense and shall be fined an amount not

to exceed $5,000.

(g) A sports lottery terminal shall only accept parlay

wagers and fixed odds parlay wagers. The Department shall, by

rule, establish the total amount, as a percentage, of all

wagers placed that a lottery retailer may retain.

(h) The Department shall have jurisdiction over and shall

supervise all lottery sports wagering operations governed by

this Section. The Department shall have all powers necessary

and proper to fully and effectively execute the provisions of

this Section, including, but not limited to, the following:

(1) To investigate applicants and determine the

eligibility of applicants for licenses and to select among

competing applicants the applicants which best serve the

interests of the citizens of Illinois.

(2) To have jurisdiction and supervision over all

lottery sports wagering operations in this State.

(3) To adopt rules for the purpose of administering the

provisions of this Section and to adopt rules and

conditions under which all lottery sports wagering in the

State shall be conducted. Such rules are to provide for the

prevention of practices detrimental to the public interest

and for the best interests of lottery sports wagering,

including rules (i) regarding the inspection of such

licensees necessary to operate a lottery retailer under any

laws or rules applicable to licensees, (ii) to impose

penalties for violations of the Act and its rules, and

(iii) establishing standards for advertising lottery

sports wagering.

(i) The Department shall adopt emergency rules to

administer this Section in accordance with Section 5-45 of the

Illinois Administrative Procedure Act. For the purposes of the

Illinois Administrative Procedure Act, the General Assembly

finds that the adoption of rules to implement this Section is

deemed an emergency and necessary to the public interest,

safety, and welfare.

(j) For the privilege of operating lottery sports wagering

under this Section, all proceeds minus net of proceeds returned

to players shall be electronically transferred daily or weekly,

at the discretion of the Director of the Lottery, into the

State Lottery Fund. After amounts owed to the central system

provider and licensed agents, as determined by the Department,

are paid from the moneys deposited into the State Lottery Fund

under this subsection, the remainder shall be transferred on

the 15th of each month to the Capital Projects Fund.

(k) This Section is repealed on January 1, 2024.

Section 25-75. Reporting prohibited conduct;

investigations of prohibited conduct.

(a) The Board shall establish a hotline or other method of

communication that allows any person to confidentially report

information about prohibited conduct to the Board.

(b) The Board shall investigate all reasonable allegations

of prohibited conduct and refer any allegations it deems

credible to the appropriate law enforcement entity.

(c) The identity of any reporting person shall remain

confidential unless that person authorizes disclosure of his or

her identity or until such time as the allegation of prohibited

conduct is referred to law enforcement.

(d) If the Board receives a complaint of prohibited conduct

by an athlete, the Board shall notify the appropriate sports

governing body of the athlete to review the complaint as

provided by rule.

(e) The Board shall adopt emergency rules to administer

this Section in accordance with Section 5-45 of the Illinois

Administrative Procedure Act.

(f) The Board shall adopt rules governing investigations of

prohibited conduct and referrals to law enforcement entities.

Section 25-80. Personal biometric data. A master sports

wagering licensee shall not purchase or use any personal

biometric data of an athlete unless the master sports wagering

licensee has received written permission from the athlete's

exclusive bargaining representative.

Section 25-85. Supplier diversity goals for sports

wagering.

(a) As used in this Section only, "licensee" means a

licensee under this Act other than an occupational licensee.

(b) The public policy of this State is to collaboratively

work with companies that serve Illinois residents to improve

their supplier diversity in a non-antagonistic manner.

(c) The Board and the Department shall require all

licensees under this Act to submit an annual report by April

15, 2020 and every April 15 thereafter, in a searchable Adobe

PDF format, on all procurement goals and actual spending for

businesses owned by women, minorities, veterans, and persons

with disabilities and small business enterprises in the

previous calendar year. These goals shall be expressed as a

percentage of the total work performed by the entity submitting

the report, and the actual spending for all businesses owned by

women, minorities, veterans, and persons with disabilities and

small business enterprises shall also be expressed as a

percentage of the total work performed by the entity submitting

the report.

(d) Each licensee in its annual report shall include the

following information:

(1) an explanation of the plan for the next year to

increase participation;

(2) an explanation of the plan to increase the goals;

(3) the areas of procurement each licensee shall be

actively seeking more participation in the next year;

(4) an outline of the plan to alert and encourage

potential vendors in that area to seek business from the

licensee;

(5) an explanation of the challenges faced in finding

quality vendors and offer any suggestions for what the

Board could do to be helpful to identify those vendors;

(6) a list of the certifications the licensee

recognizes;

(7) the point of contact for any potential vendor who

wishes to do business with the licensee and explain the

process for a vendor to enroll with the licensee as a

businesses owned by women, minorities, veterans, or

persons with disabilities; and

(8) any particular success stories to encourage other

licensee to emulate best practices.

(e) Each annual report shall include as much State-specific

data as possible. If the submitting entity does not submit

State-specific data, then the licensee shall include any

national data it does have and explain why it could not submit

State-specific data and how it intends to do so in future

reports, if possible.

(f) Each annual report shall include the rules,

regulations, and definitions used for the procurement goals in

the licensee's annual report.

(g) The Board, Department, and all licensees shall hold an

annual workshop and job fair open to the public in 2020 and

every year thereafter on the state of supplier diversity to

collaboratively seek solutions to structural impediments to

achieving stated goals, including testimony from each licensee

as well as subject matter experts and advocates. The Board and

Department shall publish a database on their websites of the

point of contact for licensees they regulate under this Act for

supplier diversity, along with a list of certifications each

licensee recognizes from the information submitted in each

annual report. The Board and Department shall publish each

annual report on their websites and shall maintain each annual

report for at least 5 years.

Section 25-90. Tax; Sports Wagering Fund.

(a) For the privilege of holding a license to operate

sports wagering under this Act, this State shall impose and

collect 15% of a master sports wagering licensee's adjusted

gross sports wagering receipts from sports wagering. The

accrual method of accounting shall be used for purposes of

calculating the amount of the tax owed by the licensee.

The taxes levied and collected pursuant to this subsection

(a) are due and payable to the Board no later than the last day

of the month following the calendar month in which the adjusted

gross sports wagering receipts were received and the tax

obligation was accrued.

(a-5) In addition to the tax imposed under subsection (a)

of this Section, for the privilege of holding a license to

operate sports wagering under this Act, the State shall impose

and collect 2% of the adjusted gross receipts from sports

wagers that are placed within a home rule county with a

population of over 3,000,000 inhabitants, which shall be paid,

subject to appropriation from the General Assembly, from the

Sports Wagering Fund to that home rule county for the purpose

of enhancing the county's criminal justice system.

(b) The Sports Wagering Fund is hereby created as special

fund in the State treasury. Except as otherwise provided in

this Act, all moneys collected under this Act by the Board

shall be deposited into the Sports Wagering Fund. On the 25th

of each month, any moneys remaining in the Sports Wagering Fund

shall be transferred to the Capital Projects Fund.

Section 25-95. Compulsive gambling. Each master sports

wagering licensee shall include a statement regarding

obtaining assistance with gambling problems, the text of which

shall be determined by rule by the Department of Human

Services, on the master sports wagering licensee's portal,

Internet website, or computer or mobile application.

Section 25-100. Voluntary self-exclusion program for

sports wagering. Any resident, or non-resident if allowed to

participate in sports wagering, may voluntarily prohibit

himself or herself from establishing a sports wagering account

with a licensee under this Act. The Board and Department shall

incorporate the voluntary self-exclusion program for sports

wagering into any existing self-exclusion program that it

operates on the effective date of this Act.

Section 25-105. Report to General Assembly. On or before

January 15, 2021 and every January 15 thereafter, the Board

shall provide a report to the General Assembly on sports

wagering conducted under this Act.

Section 25-110. Preemption. Nothing in this Act shall be

deemed to diminish the rights, privileges, or remedies of a

person under any other federal or State law, rule, or

regulation.

Section 25-900. The Illinois Administrative Procedure Act

is amended by changing Section 5-45 as follows:

(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)

Sec. 5-45. Emergency rulemaking.

(a) "Emergency" means the existence of any situation that

any agency finds reasonably constitutes a threat to the public

interest, safety, or welfare.

(b) If any agency finds that an emergency exists that

requires adoption of a rule upon fewer days than is required by

Section 5-40 and states in writing its reasons for that

finding, the agency may adopt an emergency rule without prior

notice or hearing upon filing a notice of emergency rulemaking

with the Secretary of State under Section 5-70. The notice

shall include the text of the emergency rule and shall be

published in the Illinois Register. Consent orders or other

court orders adopting settlements negotiated by an agency may

be adopted under this Section. Subject to applicable

constitutional or statutory provisions, an emergency rule

becomes effective immediately upon filing under Section 5-65 or

at a stated date less than 10 days thereafter. The agency's

finding and a statement of the specific reasons for the finding

shall be filed with the rule. The agency shall take reasonable

and appropriate measures to make emergency rules known to the

persons who may be affected by them.

(c) An emergency rule may be effective for a period of not

longer than 150 days, but the agency's authority to adopt an

identical rule under Section 5-40 is not precluded. No

emergency rule may be adopted more than once in any 24-month

period, except that this limitation on the number of emergency

rules that may be adopted in a 24-month period does not apply

to (i) emergency rules that make additions to and deletions

from the Drug Manual under Section 5-5.16 of the Illinois

Public Aid Code or the generic drug formulary under Section

3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)

emergency rules adopted by the Pollution Control Board before

July 1, 1997 to implement portions of the Livestock Management

Facilities Act, (iii) emergency rules adopted by the Illinois

Department of Public Health under subsections (a) through (i)

of Section 2 of the Department of Public Health Act when

necessary to protect the public's health, (iv) emergency rules

adopted pursuant to subsection (n) of this Section, (v)

emergency rules adopted pursuant to subsection (o) of this

Section, or (vi) emergency rules adopted pursuant to subsection

(c-5) of this Section. Two or more emergency rules having

substantially the same purpose and effect shall be deemed to be

a single rule for purposes of this Section.

(c-5) To facilitate the maintenance of the program of group

health benefits provided to annuitants, survivors, and retired

employees under the State Employees Group Insurance Act of

1971, rules to alter the contributions to be paid by the State,

annuitants, survivors, retired employees, or any combination

of those entities, for that program of group health benefits,

shall be adopted as emergency rules. The adoption of those

rules shall be considered an emergency and necessary for the

public interest, safety, and welfare.

(d) In order to provide for the expeditious and timely

implementation of the State's fiscal year 1999 budget,

emergency rules to implement any provision of Public Act 90-587

or 90-588 or any other budget initiative for fiscal year 1999

may be adopted in accordance with this Section by the agency

charged with administering that provision or initiative,

except that the 24-month limitation on the adoption of

emergency rules and the provisions of Sections 5-115 and 5-125

do not apply to rules adopted under this subsection (d). The

adoption of emergency rules authorized by this subsection (d)

shall be deemed to be necessary for the public interest,

safety, and welfare.

(e) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2000 budget,

emergency rules to implement any provision of Public Act 91-24

or any other budget initiative for fiscal year 2000 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (e). The adoption of

emergency rules authorized by this subsection (e) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(f) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2001 budget,

emergency rules to implement any provision of Public Act 91-712

or any other budget initiative for fiscal year 2001 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (f). The adoption of

emergency rules authorized by this subsection (f) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(g) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2002 budget,

emergency rules to implement any provision of Public Act 92-10

or any other budget initiative for fiscal year 2002 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (g). The adoption of

emergency rules authorized by this subsection (g) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(h) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2003 budget,

emergency rules to implement any provision of Public Act 92-597

or any other budget initiative for fiscal year 2003 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (h). The adoption of

emergency rules authorized by this subsection (h) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(i) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2004 budget,

emergency rules to implement any provision of Public Act 93-20

or any other budget initiative for fiscal year 2004 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (i). The adoption of

emergency rules authorized by this subsection (i) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(j) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2005 budget as provided under the Fiscal Year 2005 Budget

Implementation (Human Services) Act, emergency rules to

implement any provision of the Fiscal Year 2005 Budget

Implementation (Human Services) Act may be adopted in

accordance with this Section by the agency charged with

administering that provision, except that the 24-month

limitation on the adoption of emergency rules and the

provisions of Sections 5-115 and 5-125 do not apply to rules

adopted under this subsection (j). The Department of Public Aid

may also adopt rules under this subsection (j) necessary to

administer the Illinois Public Aid Code and the Children's

Health Insurance Program Act. The adoption of emergency rules

authorized by this subsection (j) shall be deemed to be

necessary for the public interest, safety, and welfare.

(k) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2006 budget, emergency rules to implement any provision of

Public Act 94-48 or any other budget initiative for fiscal year

2006 may be adopted in accordance with this Section by the

agency charged with administering that provision or

initiative, except that the 24-month limitation on the adoption

of emergency rules and the provisions of Sections 5-115 and

5-125 do not apply to rules adopted under this subsection (k).

The Department of Healthcare and Family Services may also adopt

rules under this subsection (k) necessary to administer the

Illinois Public Aid Code, the Senior Citizens and Persons with

Disabilities Property Tax Relief Act, the Senior Citizens and

Disabled Persons Prescription Drug Discount Program Act (now

the Illinois Prescription Drug Discount Program Act), and the

Children's Health Insurance Program Act. The adoption of

emergency rules authorized by this subsection (k) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(l) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2007 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2007, including

rules effective July 1, 2007, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (l) shall be deemed to be necessary for the

public interest, safety, and welfare.

(m) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2008 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2008, including

rules effective July 1, 2008, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (m) shall be deemed to be necessary for the

public interest, safety, and welfare.

(n) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2010 budget, emergency rules to implement any provision of

Public Act 96-45 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2010 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (n) shall be

deemed to be necessary for the public interest, safety, and

welfare. The rulemaking authority granted in this subsection

(n) shall apply only to rules promulgated during Fiscal Year

2010.

(o) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2011 budget, emergency rules to implement any provision of

Public Act 96-958 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2011 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (o) is deemed to

be necessary for the public interest, safety, and welfare. The

rulemaking authority granted in this subsection (o) applies

only to rules promulgated on or after July 1, 2010 (the

effective date of Public Act 96-958) through June 30, 2011.

(p) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 97-689,

emergency rules to implement any provision of Public Act 97-689

may be adopted in accordance with this subsection (p) by the

agency charged with administering that provision or

initiative. The 150-day limitation of the effective period of

emergency rules does not apply to rules adopted under this

subsection (p), and the effective period may continue through

June 30, 2013. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (p). The adoption of emergency rules authorized by

this subsection (p) is deemed to be necessary for the public

interest, safety, and welfare.

(q) In order to provide for the expeditious and timely

implementation of the provisions of Articles 7, 8, 9, 11, and

12 of Public Act 98-104, emergency rules to implement any

provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104

may be adopted in accordance with this subsection (q) by the

agency charged with administering that provision or

initiative. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (q). The adoption of emergency rules authorized by

this subsection (q) is deemed to be necessary for the public

interest, safety, and welfare.

(r) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 98-651,

emergency rules to implement Public Act 98-651 may be adopted

in accordance with this subsection (r) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (r). The adoption of emergency rules

authorized by this subsection (r) is deemed to be necessary for

the public interest, safety, and welfare.

(s) In order to provide for the expeditious and timely

implementation of the provisions of Sections 5-5b.1 and 5A-2 of

the Illinois Public Aid Code, emergency rules to implement any

provision of Section 5-5b.1 or Section 5A-2 of the Illinois

Public Aid Code may be adopted in accordance with this

subsection (s) by the Department of Healthcare and Family

Services. The rulemaking authority granted in this subsection

(s) shall apply only to those rules adopted prior to July 1,

2015. Notwithstanding any other provision of this Section, any

emergency rule adopted under this subsection (s) shall only

apply to payments made for State fiscal year 2015. The adoption

of emergency rules authorized by this subsection (s) is deemed

to be necessary for the public interest, safety, and welfare.

(t) In order to provide for the expeditious and timely

implementation of the provisions of Article II of Public Act

99-6, emergency rules to implement the changes made by Article

II of Public Act 99-6 to the Emergency Telephone System Act may

be adopted in accordance with this subsection (t) by the

Department of State Police. The rulemaking authority granted in

this subsection (t) shall apply only to those rules adopted

prior to July 1, 2016. The 24-month limitation on the adoption

of emergency rules does not apply to rules adopted under this

subsection (t). The adoption of emergency rules authorized by

this subsection (t) is deemed to be necessary for the public

interest, safety, and welfare.

(u) In order to provide for the expeditious and timely

implementation of the provisions of the Burn Victims Relief

Act, emergency rules to implement any provision of the Act may

be adopted in accordance with this subsection (u) by the

Department of Insurance. The rulemaking authority granted in

this subsection (u) shall apply only to those rules adopted

prior to December 31, 2015. The adoption of emergency rules

authorized by this subsection (u) is deemed to be necessary for

the public interest, safety, and welfare.

(v) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-516,

emergency rules to implement Public Act 99-516 may be adopted

in accordance with this subsection (v) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (v). The adoption of emergency rules

authorized by this subsection (v) is deemed to be necessary for

the public interest, safety, and welfare.

(w) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-796,

emergency rules to implement the changes made by Public Act

99-796 may be adopted in accordance with this subsection (w) by

the Adjutant General. The adoption of emergency rules

authorized by this subsection (w) is deemed to be necessary for

the public interest, safety, and welfare.

(x) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-906,

emergency rules to implement subsection (i) of Section 16-115D,

subsection (g) of Section 16-128A, and subsection (a) of

Section 16-128B of the Public Utilities Act may be adopted in

accordance with this subsection (x) by the Illinois Commerce

Commission. The rulemaking authority granted in this

subsection (x) shall apply only to those rules adopted within

180 days after June 1, 2017 (the effective date of Public Act

99-906). The adoption of emergency rules authorized by this

subsection (x) is deemed to be necessary for the public

interest, safety, and welfare.

(y) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-23,

emergency rules to implement the changes made by Public Act

100-23 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

Section 55-30 of the Alcoholism and Other Drug Abuse and

Dependency Act, and Sections 74 and 75 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (y) by the respective

Department. The adoption of emergency rules authorized by this

subsection (y) is deemed to be necessary for the public

interest, safety, and welfare.

(z) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-554,

emergency rules to implement the changes made by Public Act

100-554 to Section 4.7 of the Lobbyist Registration Act may be

adopted in accordance with this subsection (z) by the Secretary

of State. The adoption of emergency rules authorized by this

subsection (z) is deemed to be necessary for the public

interest, safety, and welfare.

(aa) In order to provide for the expeditious and timely

initial implementation of the changes made to Articles 5, 5A,

12, and 14 of the Illinois Public Aid Code under the provisions

of Public Act 100-581, the Department of Healthcare and Family

Services may adopt emergency rules in accordance with this

subsection (aa). The 24-month limitation on the adoption of

emergency rules does not apply to rules to initially implement

the changes made to Articles 5, 5A, 12, and 14 of the Illinois

Public Aid Code adopted under this subsection (aa). The

adoption of emergency rules authorized by this subsection (aa)

is deemed to be necessary for the public interest, safety, and

welfare.

(bb) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules to implement the changes made by Public Act

100-587 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

subsection (b) of Section 55-30 of the Alcoholism and Other

Drug Abuse and Dependency Act, Section 5-104 of the Specialized

Mental Health Rehabilitation Act of 2013, and Section 75 and

subsection (b) of Section 74 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (bb) by the respective

Department. The adoption of emergency rules authorized by this

subsection (bb) is deemed to be necessary for the public

interest, safety, and welfare.

(cc) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules may be adopted in accordance with this

subsection (cc) to implement the changes made by Public Act

100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois

Pension Code by the Board created under Article 14 of the Code;

Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by

the Board created under Article 15 of the Code; and Sections

16-190.5 and 16-190.6 of the Illinois Pension Code by the Board

created under Article 16 of the Code. The adoption of emergency

rules authorized by this subsection (cc) is deemed to be

necessary for the public interest, safety, and welfare.

(dd) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-864,

emergency rules to implement the changes made by Public Act

100-864 to Section 3.35 of the Newborn Metabolic Screening Act

may be adopted in accordance with this subsection (dd) by the

Secretary of State. The adoption of emergency rules authorized

by this subsection (dd) is deemed to be necessary for the

public interest, safety, and welfare.

(ee) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-1172 this

amendatory Act of the 100th General Assembly, emergency rules

implementing the Illinois Underground Natural Gas Storage

Safety Act may be adopted in accordance with this subsection by

the Department of Natural Resources. The adoption of emergency

rules authorized by this subsection is deemed to be necessary

for the public interest, safety, and welfare.

(ff) (ee) In order to provide for the expeditious and

timely initial implementation of the changes made to Articles

5A and 14 of the Illinois Public Aid Code under the provisions

of Public Act 100-1181 this amendatory Act of the 100th General

Assembly, the Department of Healthcare and Family Services may

on a one-time-only basis adopt emergency rules in accordance

with this subsection (ff) (ee). The 24-month limitation on the

adoption of emergency rules does not apply to rules to

initially implement the changes made to Articles 5A and 14 of

the Illinois Public Aid Code adopted under this subsection (ff)

(ee). The adoption of emergency rules authorized by this

subsection (ff) (ee) is deemed to be necessary for the public

interest, safety, and welfare.

(gg) (ff) In order to provide for the expeditious and

timely implementation of the provisions of Public Act 101-1

this amendatory Act of the 101st General Assembly, emergency

rules may be adopted by the Department of Labor in accordance

with this subsection (gg) (ff) to implement the changes made by

Public Act 101-1 this amendatory Act of the 101st General

Assembly to the Minimum Wage Law. The adoption of emergency

rules authorized by this subsection (gg) (ff) is deemed to be

necessary for the public interest, safety, and welfare.

(ii) In order to provide for the expeditious and timely

implementation of the provisions of Section 25-70 of the Sports

Wagering Act, emergency rules to implement Section 25-70 of the

Sports Wagering Act may be adopted in accordance with this

subsection (ii) by the Department of the Lottery as provided in

the Sports Wagering Act. The adoption of emergency rules

authorized by this subsection (ii) is deemed to be necessary

for the public interest, safety, and welfare.

(jj) In order to provide for the expeditious and timely

implementation of the Sports Wagering Act, emergency rules to

implement the Sports Wagering Act may be adopted in accordance

with this subsection (jj) by the Illinois Gaming Board. The

adoption of emergency rules authorized by this subsection (jj)

is deemed to be necessary for the public interest, safety, and

welfare.

(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;

100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.

6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;

100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.

3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)

Section 25-905. The State Finance Act is amended by adding

Section 5.896 as follows:

(30 ILCS 105/5.896 new)

Sec. 5.896. The Sports Wagering Fund.

Section 25-910. The Riverboat Gambling Act is amended by

changing Section 13 as follows:

(230 ILCS 10/13) (from Ch. 120, par. 2413)

Sec. 13. Wagering tax; rate; distribution.

(a) Until January 1, 1998, a tax is imposed on the adjusted

gross receipts received from gambling games authorized under

this Act at the rate of 20%.

(a-1) From January 1, 1998 until July 1, 2002, a privilege

tax is imposed on persons engaged in the business of conducting

riverboat gambling operations, based on the adjusted gross

receipts received by a licensed owner from gambling games

authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

20% of annual adjusted gross receipts in excess of

$25,000,000 but not exceeding $50,000,000;

25% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;

30% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000;

35% of annual adjusted gross receipts in excess of

$100,000,000.

(a-2) From July 1, 2002 until July 1, 2003, a privilege tax

is imposed on persons engaged in the business of conducting

riverboat gambling operations, other than licensed managers

conducting riverboat gambling operations on behalf of the

State, based on the adjusted gross receipts received by a

licensed owner from gambling games authorized under this Act at

the following rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

22.5% of annual adjusted gross receipts in excess of

$25,000,000 but not exceeding $50,000,000;

27.5% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;

32.5% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000;

37.5% of annual adjusted gross receipts in excess of

$100,000,000 but not exceeding $150,000,000;

45% of annual adjusted gross receipts in excess of

$150,000,000 but not exceeding $200,000,000;

50% of annual adjusted gross receipts in excess of

$200,000,000.

(a-3) Beginning July 1, 2003, a privilege tax is imposed on

persons engaged in the business of conducting riverboat

gambling operations, other than licensed managers conducting

riverboat gambling operations on behalf of the State, based on

the adjusted gross receipts received by a licensed owner from

gambling games authorized under this Act at the following

rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

27.5% of annual adjusted gross receipts in excess of

$25,000,000 but not exceeding $37,500,000;

32.5% of annual adjusted gross receipts in excess of

$37,500,000 but not exceeding $50,000,000;

37.5% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;

45% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000;

50% of annual adjusted gross receipts in excess of

$100,000,000 but not exceeding $250,000,000;

70% of annual adjusted gross receipts in excess of

$250,000,000.

An amount equal to the amount of wagering taxes collected

under this subsection (a-3) that are in addition to the amount

of wagering taxes that would have been collected if the

wagering tax rates under subsection (a-2) were in effect shall

be paid into the Common School Fund.

The privilege tax imposed under this subsection (a-3) shall

no longer be imposed beginning on the earlier of (i) July 1,

2005; (ii) the first date after June 20, 2003 that riverboat

gambling operations are conducted pursuant to a dormant

license; or (iii) the first day that riverboat gambling

operations are conducted under the authority of an owners

license that is in addition to the 10 owners licenses initially

authorized under this Act. For the purposes of this subsection

(a-3), the term "dormant license" means an owners license that

is authorized by this Act under which no riverboat gambling

operations are being conducted on June 20, 2003.

(a-4) Beginning on the first day on which the tax imposed

under subsection (a-3) is no longer imposed, a privilege tax is

imposed on persons engaged in the business of conducting

riverboat gambling operations, other than licensed managers

conducting riverboat gambling operations on behalf of the

State, based on the adjusted gross receipts received by a

licensed owner from gambling games authorized under this Act at

the following rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

22.5% of annual adjusted gross receipts in excess of

$25,000,000 but not exceeding $50,000,000;

27.5% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;

32.5% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000;

37.5% of annual adjusted gross receipts in excess of

$100,000,000 but not exceeding $150,000,000;

45% of annual adjusted gross receipts in excess of

$150,000,000 but not exceeding $200,000,000;

50% of annual adjusted gross receipts in excess of

$200,000,000.

(a-8) Riverboat gambling operations conducted by a

licensed manager on behalf of the State are not subject to the

tax imposed under this Section.

(a-10) The taxes imposed by this Section shall be paid by

the licensed owner to the Board not later than 5:00 o'clock

p.m. of the day after the day when the wagers were made.

(a-15) If the privilege tax imposed under subsection (a-3)

is no longer imposed pursuant to item (i) of the last paragraph

of subsection (a-3), then by June 15 of each year, each owners

licensee, other than an owners licensee that admitted 1,000,000

persons or fewer in calendar year 2004, must, in addition to

the payment of all amounts otherwise due under this Section,

pay to the Board a reconciliation payment in the amount, if

any, by which the licensed owner's base amount exceeds the

amount of net privilege tax paid by the licensed owner to the

Board in the then current State fiscal year. A licensed owner's

net privilege tax obligation due for the balance of the State

fiscal year shall be reduced up to the total of the amount paid

by the licensed owner in its June 15 reconciliation payment.

The obligation imposed by this subsection (a-15) is binding on

any person, firm, corporation, or other entity that acquires an

ownership interest in any such owners license. The obligation

imposed under this subsection (a-15) terminates on the earliest

of: (i) July 1, 2007, (ii) the first day after the effective

date of this amendatory Act of the 94th General Assembly that

riverboat gambling operations are conducted pursuant to a

dormant license, (iii) the first day that riverboat gambling

operations are conducted under the authority of an owners

license that is in addition to the 10 owners licenses initially

authorized under this Act, or (iv) the first day that a

licensee under the Illinois Horse Racing Act of 1975 conducts

gaming operations with slot machines or other electronic gaming

devices. The Board must reduce the obligation imposed under

this subsection (a-15) by an amount the Board deems reasonable

for any of the following reasons: (A) an act or acts of God,

(B) an act of bioterrorism or terrorism or a bioterrorism or

terrorism threat that was investigated by a law enforcement

agency, or (C) a condition beyond the control of the owners

licensee that does not result from any act or omission by the

owners licensee or any of its agents and that poses a hazardous

threat to the health and safety of patrons. If an owners

licensee pays an amount in excess of its liability under this

Section, the Board shall apply the overpayment to future

payments required under this Section.

For purposes of this subsection (a-15):

"Act of God" means an incident caused by the operation of

an extraordinary force that cannot be foreseen, that cannot be

avoided by the exercise of due care, and for which no person

can be held liable.

"Base amount" means the following:

For a riverboat in Alton, $31,000,000.

For a riverboat in East Peoria, $43,000,000.

For the Empress riverboat in Joliet, $86,000,000.

For a riverboat in Metropolis, $45,000,000.

For the Harrah's riverboat in Joliet, $114,000,000.

For a riverboat in Aurora, $86,000,000.

For a riverboat in East St. Louis, $48,500,000.

For a riverboat in Elgin, $198,000,000.

"Dormant license" has the meaning ascribed to it in

subsection (a-3).

"Net privilege tax" means all privilege taxes paid by a

licensed owner to the Board under this Section, less all

payments made from the State Gaming Fund pursuant to subsection

(b) of this Section.

The changes made to this subsection (a-15) by Public Act

94-839 are intended to restate and clarify the intent of Public

Act 94-673 with respect to the amount of the payments required

to be made under this subsection by an owners licensee to the

Board.

(b) Until January 1, 1998, 25% of the tax revenue deposited

in the State Gaming Fund under this Section shall be paid,

subject to appropriation by the General Assembly, to the unit

of local government which is designated as the home dock of the

riverboat. Beginning January 1, 1998, from the tax revenue

deposited in the State Gaming Fund under this Section, an

amount equal to 5% of adjusted gross receipts generated by a

riverboat shall be paid monthly, subject to appropriation by

the General Assembly, to the unit of local government that is

designated as the home dock of the riverboat. From the tax

revenue deposited in the State Gaming Fund pursuant to

riverboat gambling operations conducted by a licensed manager

on behalf of the State, an amount equal to 5% of adjusted gross

receipts generated pursuant to those riverboat gambling

operations shall be paid monthly, subject to appropriation by

the General Assembly, to the unit of local government that is

designated as the home dock of the riverboat upon which those

riverboat gambling operations are conducted.

(c) Appropriations, as approved by the General Assembly,

may be made from the State Gaming Fund to the Board (i) for the

administration and enforcement of this Act and the Video Gaming

Act, (ii) for distribution to the Department of State Police

and to the Department of Revenue for the enforcement of this

Act, and (iii) to the Department of Human Services for the

administration of programs to treat problem gambling,

including problem gambling from sports wagering.

(c-5) Before May 26, 2006 (the effective date of Public Act

94-804) and beginning on the effective date of this amendatory

Act of the 95th General Assembly, unless any organization

licensee under the Illinois Horse Racing Act of 1975 begins to

operate a slot machine or video game of chance under the

Illinois Horse Racing Act of 1975 or this Act, after the

payments required under subsections (b) and (c) have been made,

an amount equal to 15% of the adjusted gross receipts of (1) an

owners licensee that relocates pursuant to Section 11.2, (2) an

owners licensee conducting riverboat gambling operations

pursuant to an owners license that is initially issued after

June 25, 1999, or (3) the first riverboat gambling operations

conducted by a licensed manager on behalf of the State under

Section 7.3, whichever comes first, shall be paid from the

State Gaming Fund into the Horse Racing Equity Fund.

(c-10) Each year the General Assembly shall appropriate

from the General Revenue Fund to the Education Assistance Fund

an amount equal to the amount paid into the Horse Racing Equity

Fund pursuant to subsection (c-5) in the prior calendar year.

(c-15) After the payments required under subsections (b),

(c), and (c-5) have been made, an amount equal to 2% of the

adjusted gross receipts of (1) an owners licensee that

relocates pursuant to Section 11.2, (2) an owners licensee

conducting riverboat gambling operations pursuant to an owners

license that is initially issued after June 25, 1999, or (3)

the first riverboat gambling operations conducted by a licensed

manager on behalf of the State under Section 7.3, whichever

comes first, shall be paid, subject to appropriation from the

General Assembly, from the State Gaming Fund to each home rule

county with a population of over 3,000,000 inhabitants for the

purpose of enhancing the county's criminal justice system.

(c-20) Each year the General Assembly shall appropriate

from the General Revenue Fund to the Education Assistance Fund

an amount equal to the amount paid to each home rule county

with a population of over 3,000,000 inhabitants pursuant to

subsection (c-15) in the prior calendar year.

(c-25) On July 1, 2013 and each July 1 thereafter,

$1,600,000 shall be transferred from the State Gaming Fund to

the Chicago State University Education Improvement Fund.

(c-30) On July 1, 2013 or as soon as possible thereafter,

$92,000,000 shall be transferred from the State Gaming Fund to

the School Infrastructure Fund and $23,000,000 shall be

transferred from the State Gaming Fund to the Horse Racing

Equity Fund.

(c-35) Beginning on July 1, 2013, in addition to any amount

transferred under subsection (c-30) of this Section,

$5,530,000 shall be transferred monthly from the State Gaming

Fund to the School Infrastructure Fund.

(d) From time to time, the Board shall transfer the

remainder of the funds generated by this Act into the Education

Assistance Fund, created by Public Act 86-0018, of the State of

Illinois.

(e) Nothing in this Act shall prohibit the unit of local

government designated as the home dock of the riverboat from

entering into agreements with other units of local government

in this State or in other states to share its portion of the

tax revenue.

(f) To the extent practicable, the Board shall administer

and collect the wagering taxes imposed by this Section in a

manner consistent with the provisions of Sections 4, 5, 5a, 5b,

5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the

Retailers' Occupation Tax Act and Section 3-7 of the Uniform

Penalty and Interest Act.

(Source: P.A. 98-18, eff. 6-7-13.)

Section 25-915. The Criminal Code of 2012 is amended by

changing Sections 28-1, 28-3, and 28-5 as follows:

(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

Sec. 28-1. Gambling.

(a) A person commits gambling when he or she:

(1) knowingly plays a game of chance or skill for money

or other thing of value, unless excepted in subsection (b)

of this Section;

(2) knowingly makes a wager upon the result of any

game, contest, or any political nomination, appointment or

election;

(3) knowingly operates, keeps, owns, uses, purchases,

exhibits, rents, sells, bargains for the sale or lease of,

manufactures or distributes any gambling device;

(4) contracts to have or give himself or herself or

another the option to buy or sell, or contracts to buy or

sell, at a future time, any grain or other commodity

whatsoever, or any stock or security of any company, where

it is at the time of making such contract intended by both

parties thereto that the contract to buy or sell, or the

option, whenever exercised, or the contract resulting

therefrom, shall be settled, not by the receipt or delivery

of such property, but by the payment only of differences in

prices thereof; however, the issuance, purchase, sale,

exercise, endorsement or guarantee, by or through a person

registered with the Secretary of State pursuant to Section

8 of the Illinois Securities Law of 1953, or by or through

a person exempt from such registration under said Section

8, of a put, call, or other option to buy or sell

securities which have been registered with the Secretary of

State or which are exempt from such registration under

Section 3 of the Illinois Securities Law of 1953 is not

gambling within the meaning of this paragraph (4);

(5) knowingly owns or possesses any book, instrument or

apparatus by means of which bets or wagers have been, or

are, recorded or registered, or knowingly possesses any

money which he has received in the course of a bet or

wager;

(6) knowingly sells pools upon the result of any game

or contest of skill or chance, political nomination,

appointment or election;

(7) knowingly sets up or promotes any lottery or sells,

offers to sell or transfers any ticket or share for any

lottery;

(8) knowingly sets up or promotes any policy game or

sells, offers to sell or knowingly possesses or transfers

any policy ticket, slip, record, document or other similar

device;

(9) knowingly drafts, prints or publishes any lottery

ticket or share, or any policy ticket, slip, record,

document or similar device, except for such activity

related to lotteries, bingo games and raffles authorized by

and conducted in accordance with the laws of Illinois or

any other state or foreign government;

(10) knowingly advertises any lottery or policy game,

except for such activity related to lotteries, bingo games

and raffles authorized by and conducted in accordance with

the laws of Illinois or any other state;

(11) knowingly transmits information as to wagers,

betting odds, or changes in betting odds by telephone,

telegraph, radio, semaphore or similar means; or knowingly

installs or maintains equipment for the transmission or

receipt of such information; except that nothing in this

subdivision (11) prohibits transmission or receipt of such

information for use in news reporting of sporting events or

contests; or

(12) knowingly establishes, maintains, or operates an

Internet site that permits a person to play a game of

chance or skill for money or other thing of value by means

of the Internet or to make a wager upon the result of any

game, contest, political nomination, appointment, or

election by means of the Internet. This item (12) does not

apply to activities referenced in items (6), and (6.1), and

(15) of subsection (b) of this Section.

(b) Participants in any of the following activities shall

not be convicted of gambling:

(1) Agreements to compensate for loss caused by the

happening of chance including without limitation contracts

of indemnity or guaranty and life or health or accident

insurance.

(2) Offers of prizes, award or compensation to the

actual contestants in any bona fide contest for the

determination of skill, speed, strength or endurance or to

the owners of animals or vehicles entered in such contest.

(3) Pari-mutuel betting as authorized by the law of

this State.

(4) Manufacture of gambling devices, including the

acquisition of essential parts therefor and the assembly

thereof, for transportation in interstate or foreign

commerce to any place outside this State when such

transportation is not prohibited by any applicable Federal

law; or the manufacture, distribution, or possession of

video gaming terminals, as defined in the Video Gaming Act,

by manufacturers, distributors, and terminal operators

licensed to do so under the Video Gaming Act.

(5) The game commonly known as "bingo", when conducted

in accordance with the Bingo License and Tax Act.

(6) Lotteries when conducted by the State of Illinois

in accordance with the Illinois Lottery Law. This exemption

includes any activity conducted by the Department of

Revenue to sell lottery tickets pursuant to the provisions

of the Illinois Lottery Law and its rules.

(6.1) The purchase of lottery tickets through the

Internet for a lottery conducted by the State of Illinois

under the program established in Section 7.12 of the

Illinois Lottery Law.

(7) Possession of an antique slot machine that is

neither used nor intended to be used in the operation or

promotion of any unlawful gambling activity or enterprise.

For the purpose of this subparagraph (b)(7), an antique

slot machine is one manufactured 25 years ago or earlier.

(8) Raffles and poker runs when conducted in accordance

with the Raffles and Poker Runs Act.

(9) Charitable games when conducted in accordance with

the Charitable Games Act.

(10) Pull tabs and jar games when conducted under the

Illinois Pull Tabs and Jar Games Act.

(11) Gambling games conducted on riverboats when

authorized by the Riverboat Gambling Act.

(12) Video gaming terminal games at a licensed

establishment, licensed truck stop establishment, licensed

fraternal establishment, or licensed veterans

establishment when conducted in accordance with the Video

Gaming Act.

(13) Games of skill or chance where money or other

things of value can be won but no payment or purchase is

required to participate.

(14) Savings promotion raffles authorized under

Section 5g of the Illinois Banking Act, Section 7008 of the

Savings Bank Act, Section 42.7 of the Illinois Credit Union

Act, Section 5136B of the National Bank Act (12 U.S.C.

25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.

1463).

(15) Sports wagering when conducted in accordance with

the Sports Wagering Act.

(c) Sentence.

Gambling is a Class A misdemeanor. A second or subsequent

conviction under subsections (a)(3) through (a)(12), is a Class

4 felony.

(d) Circumstantial evidence.

In prosecutions under this Section circumstantial evidence

shall have the same validity and weight as in any criminal

prosecution.

(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

(720 ILCS 5/28-3) (from Ch. 38, par. 28-3)

Sec. 28-3. Keeping a Gambling Place. A "gambling place" is

any real estate, vehicle, boat or any other property whatsoever

used for the purposes of gambling other than gambling conducted

in the manner authorized by the Riverboat Gambling Act, the

Sports Wagering Act, or the Video Gaming Act. Any person who

knowingly permits any premises or property owned or occupied by

him or under his control to be used as a gambling place commits

a Class A misdemeanor. Each subsequent offense is a Class 4

felony. When any premises is determined by the circuit court to

be a gambling place:

(a) Such premises is a public nuisance and may be proceeded

against as such, and

(b) All licenses, permits or certificates issued by the

State of Illinois or any subdivision or public agency thereof

authorizing the serving of food or liquor on such premises

shall be void; and no license, permit or certificate so

cancelled shall be reissued for such premises for a period of

60 days thereafter; nor shall any person convicted of keeping a

gambling place be reissued such license for one year from his

conviction and, after a second conviction of keeping a gambling

place, any such person shall not be reissued such license, and

(c) Such premises of any person who knowingly permits

thereon a violation of any Section of this Article shall be

held liable for, and may be sold to pay any unsatisfied

judgment that may be recovered and any unsatisfied fine that

may be levied under any Section of this Article.

(Source: P.A. 96-34, eff. 7-13-09.)

(720 ILCS 5/28-5) (from Ch. 38, par. 28-5)

Sec. 28-5. Seizure of gambling devices and gambling funds.

(a) Every device designed for gambling which is incapable

of lawful use or every device used unlawfully for gambling

shall be considered a "gambling device", and shall be subject

to seizure, confiscation and destruction by the Department of

State Police or by any municipal, or other local authority,

within whose jurisdiction the same may be found. As used in

this Section, a "gambling device" includes any slot machine,

and includes any machine or device constructed for the

reception of money or other thing of value and so constructed

as to return, or to cause someone to return, on chance to the

player thereof money, property or a right to receive money or

property. With the exception of any device designed for

gambling which is incapable of lawful use, no gambling device

shall be forfeited or destroyed unless an individual with a

property interest in said device knows of the unlawful use of

the device.

(b) Every gambling device shall be seized and forfeited to

the county wherein such seizure occurs. Any money or other

thing of value integrally related to acts of gambling shall be

seized and forfeited to the county wherein such seizure occurs.

(c) If, within 60 days after any seizure pursuant to

subparagraph (b) of this Section, a person having any property

interest in the seized property is charged with an offense, the

court which renders judgment upon such charge shall, within 30

days after such judgment, conduct a forfeiture hearing to

determine whether such property was a gambling device at the

time of seizure. Such hearing shall be commenced by a written

petition by the State, including material allegations of fact,

the name and address of every person determined by the State to

have any property interest in the seized property, a

representation that written notice of the date, time and place

of such hearing has been mailed to every such person by

certified mail at least 10 days before such date, and a request

for forfeiture. Every such person may appear as a party and

present evidence at such hearing. The quantum of proof required

shall be a preponderance of the evidence, and the burden of

proof shall be on the State. If the court determines that the

seized property was a gambling device at the time of seizure,

an order of forfeiture and disposition of the seized property

shall be entered: a gambling device shall be received by the

State's Attorney, who shall effect its destruction, except that

valuable parts thereof may be liquidated and the resultant

money shall be deposited in the general fund of the county

wherein such seizure occurred; money and other things of value

shall be received by the State's Attorney and, upon

liquidation, shall be deposited in the general fund of the

county wherein such seizure occurred. However, in the event

that a defendant raises the defense that the seized slot

machine is an antique slot machine described in subparagraph

(b) (7) of Section 28-1 of this Code and therefore he is exempt

from the charge of a gambling activity participant, the seized

antique slot machine shall not be destroyed or otherwise

altered until a final determination is made by the Court as to

whether it is such an antique slot machine. Upon a final

determination by the Court of this question in favor of the

defendant, such slot machine shall be immediately returned to

the defendant. Such order of forfeiture and disposition shall,

for the purposes of appeal, be a final order and judgment in a

civil proceeding.

(d) If a seizure pursuant to subparagraph (b) of this

Section is not followed by a charge pursuant to subparagraph

(c) of this Section, or if the prosecution of such charge is

permanently terminated or indefinitely discontinued without

any judgment of conviction or acquittal (1) the State's

Attorney shall commence an in rem proceeding for the forfeiture

and destruction of a gambling device, or for the forfeiture and

deposit in the general fund of the county of any seized money

or other things of value, or both, in the circuit court and (2)

any person having any property interest in such seized gambling

device, money or other thing of value may commence separate

civil proceedings in the manner provided by law.

(e) Any gambling device displayed for sale to a riverboat

gambling operation or used to train occupational licensees of a

riverboat gambling operation as authorized under the Riverboat

Gambling Act is exempt from seizure under this Section.

(f) Any gambling equipment, devices and supplies provided

by a licensed supplier in accordance with the Riverboat

Gambling Act which are removed from the riverboat for repair

are exempt from seizure under this Section.

(g) The following video gaming terminals are exempt from

seizure under this Section:

(1) Video gaming terminals for sale to a licensed

distributor or operator under the Video Gaming Act.

(2) Video gaming terminals used to train licensed

technicians or licensed terminal handlers.

(3) Video gaming terminals that are removed from a

licensed establishment, licensed truck stop establishment,

licensed fraternal establishment, or licensed veterans

establishment for repair.

(h) Property seized or forfeited under this Section is

subject to reporting under the Seizure and Forfeiture Reporting

Act.

(i) Any sports lottery terminals provided by a central

system provider that are removed from a lottery retailer for

repair under the Sports Wagering Act are exempt from seizure

under this Section.

(Source: P.A. 100-512, eff. 7-1-18.)

Article 30. State Fair Gaming Act

Section 30-1. Short title. This Article may be cited as the

State Fair Gaming Act. References in this Article to "this Act"

mean this Article.

Section 30-5. Definitions. As used in this Act:

"Board" means the Illinois Gaming Board.

"State Fair" has the meaning given to that term in the

State Fair Act.

Section 30-10. Gambling at the State Fair.

(a) The Board shall issue a licensed establishment license

as provided under Section 25 of the Video Gaming Act to a

concessioner who will operate at the Illinois State Fairgrounds

and at the DuQuoin State Fairgrounds. The concessioner shall be

chosen under the Illinois Procurement Code for an operational

period not to exceed 3 years. At the conclusion of each 3-year

cycle, the Illinois Procurement Code shall be used to determine

the new concessioner.

(b) Moneys bid by the concessioner shall be deposited into

the State Fairgrounds Capital Improvements and Harness Racing

Fund.

Section 30-15. Video gaming at the State Fair.

(a) The concessioner issued a licensed establishment

license under Section 30-10 may operate: (1) up to 50 video

gaming terminals as provided in the Video Gaming Act during the

scheduled dates of the Illinois State Fair; and (2) up to 30

video gaming terminals as provided in the Video Gaming Act

during the scheduled dates of the DuQuoin State Fair.

(b) No more than 10 video gaming terminals may be placed in

any temporary pavilion where alcoholic beverages are served at

either State Fair.

Section 30-20. Revenue.

(a) Notwithstanding any other law to the contrary, a tax is

imposed at the rate of 35% of net terminal income received from

video gaming under this Act, which shall be remitted to the

Board and deposited into the State Fairgrounds Capital

Improvements and Harness Racing Fund.

(b) There is created within the State treasury the State

Fairgrounds Capital Improvements and Harness Racing Fund. The

Department of Agriculture shall use moneys in the State

Fairgrounds Capital Improvements and Harness Racing Fund as

follows and in the order of priority:

(1) to provide support for a harness race meeting

produced by an organization licensee under the Illinois

Horse Racing Act of 1975 and which shall consist of up to

30 days of live racing per year at the Illinois State

Fairgrounds in Springfield;

(2) to repair and rehabilitate fairgrounds'

backstretch facilities to such a level as determined by the

Department of Agriculture to be required to carry out a

program of live harness racing; and

(3) for the overall repair and rehabilitation of the

capital infrastructure of: (i) the Illinois State

Fairgrounds in Springfield, and (ii) the DuQuoin State

Fairgrounds in DuQuoin, and for no other purpose.

Notwithstanding any other law to the contrary, the entire

State share of tax revenues from the race meetings under

paragraph (1) of this subsection (c) shall be reinvested into

the State Fairgrounds Capital Improvements and Harness Racing

Fund.

Section 30-25. Rules. The Board and the Department of

Agriculture may adopt rules for the implementation of this Act.

Section 30-900. The State Finance Act is amended by adding

Section 5.897 as follows:

(30 ILCS 105/5.897 new)

Sec. 5.897. The State Fairgrounds Capital Improvements and

Harness Racing Fund.

Article 35. Amendatory Provisions

Section 35-3. The Illinois Administrative Procedure Act is

amended by changing Section 5-45 as follows:

(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)

Sec. 5-45. Emergency rulemaking.

(a) "Emergency" means the existence of any situation that

any agency finds reasonably constitutes a threat to the public

interest, safety, or welfare.

(b) If any agency finds that an emergency exists that

requires adoption of a rule upon fewer days than is required by

Section 5-40 and states in writing its reasons for that

finding, the agency may adopt an emergency rule without prior

notice or hearing upon filing a notice of emergency rulemaking

with the Secretary of State under Section 5-70. The notice

shall include the text of the emergency rule and shall be

published in the Illinois Register. Consent orders or other

court orders adopting settlements negotiated by an agency may

be adopted under this Section. Subject to applicable

constitutional or statutory provisions, an emergency rule

becomes effective immediately upon filing under Section 5-65 or

at a stated date less than 10 days thereafter. The agency's

finding and a statement of the specific reasons for the finding

shall be filed with the rule. The agency shall take reasonable

and appropriate measures to make emergency rules known to the

persons who may be affected by them.

(c) An emergency rule may be effective for a period of not

longer than 150 days, but the agency's authority to adopt an

identical rule under Section 5-40 is not precluded. No

emergency rule may be adopted more than once in any 24-month

period, except that this limitation on the number of emergency

rules that may be adopted in a 24-month period does not apply

to (i) emergency rules that make additions to and deletions

from the Drug Manual under Section 5-5.16 of the Illinois

Public Aid Code or the generic drug formulary under Section

3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)

emergency rules adopted by the Pollution Control Board before

July 1, 1997 to implement portions of the Livestock Management

Facilities Act, (iii) emergency rules adopted by the Illinois

Department of Public Health under subsections (a) through (i)

of Section 2 of the Department of Public Health Act when

necessary to protect the public's health, (iv) emergency rules

adopted pursuant to subsection (n) of this Section, (v)

emergency rules adopted pursuant to subsection (o) of this

Section, or (vi) emergency rules adopted pursuant to subsection

(c-5) of this Section. Two or more emergency rules having

substantially the same purpose and effect shall be deemed to be

a single rule for purposes of this Section.

(c-5) To facilitate the maintenance of the program of group

health benefits provided to annuitants, survivors, and retired

employees under the State Employees Group Insurance Act of

1971, rules to alter the contributions to be paid by the State,

annuitants, survivors, retired employees, or any combination

of those entities, for that program of group health benefits,

shall be adopted as emergency rules. The adoption of those

rules shall be considered an emergency and necessary for the

public interest, safety, and welfare.

(d) In order to provide for the expeditious and timely

implementation of the State's fiscal year 1999 budget,

emergency rules to implement any provision of Public Act 90-587

or 90-588 or any other budget initiative for fiscal year 1999

may be adopted in accordance with this Section by the agency

charged with administering that provision or initiative,

except that the 24-month limitation on the adoption of

emergency rules and the provisions of Sections 5-115 and 5-125

do not apply to rules adopted under this subsection (d). The

adoption of emergency rules authorized by this subsection (d)

shall be deemed to be necessary for the public interest,

safety, and welfare.

(e) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2000 budget,

emergency rules to implement any provision of Public Act 91-24

or any other budget initiative for fiscal year 2000 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (e). The adoption of

emergency rules authorized by this subsection (e) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(f) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2001 budget,

emergency rules to implement any provision of Public Act 91-712

or any other budget initiative for fiscal year 2001 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (f). The adoption of

emergency rules authorized by this subsection (f) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(g) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2002 budget,

emergency rules to implement any provision of Public Act 92-10

or any other budget initiative for fiscal year 2002 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (g). The adoption of

emergency rules authorized by this subsection (g) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(h) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2003 budget,

emergency rules to implement any provision of Public Act 92-597

or any other budget initiative for fiscal year 2003 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (h). The adoption of

emergency rules authorized by this subsection (h) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(i) In order to provide for the expeditious and timely

implementation of the State's fiscal year 2004 budget,

emergency rules to implement any provision of Public Act 93-20

or any other budget initiative for fiscal year 2004 may be

adopted in accordance with this Section by the agency charged

with administering that provision or initiative, except that

the 24-month limitation on the adoption of emergency rules and

the provisions of Sections 5-115 and 5-125 do not apply to

rules adopted under this subsection (i). The adoption of

emergency rules authorized by this subsection (i) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(j) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2005 budget as provided under the Fiscal Year 2005 Budget

Implementation (Human Services) Act, emergency rules to

implement any provision of the Fiscal Year 2005 Budget

Implementation (Human Services) Act may be adopted in

accordance with this Section by the agency charged with

administering that provision, except that the 24-month

limitation on the adoption of emergency rules and the

provisions of Sections 5-115 and 5-125 do not apply to rules

adopted under this subsection (j). The Department of Public Aid

may also adopt rules under this subsection (j) necessary to

administer the Illinois Public Aid Code and the Children's

Health Insurance Program Act. The adoption of emergency rules

authorized by this subsection (j) shall be deemed to be

necessary for the public interest, safety, and welfare.

(k) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2006 budget, emergency rules to implement any provision of

Public Act 94-48 or any other budget initiative for fiscal year

2006 may be adopted in accordance with this Section by the

agency charged with administering that provision or

initiative, except that the 24-month limitation on the adoption

of emergency rules and the provisions of Sections 5-115 and

5-125 do not apply to rules adopted under this subsection (k).

The Department of Healthcare and Family Services may also adopt

rules under this subsection (k) necessary to administer the

Illinois Public Aid Code, the Senior Citizens and Persons with

Disabilities Property Tax Relief Act, the Senior Citizens and

Disabled Persons Prescription Drug Discount Program Act (now

the Illinois Prescription Drug Discount Program Act), and the

Children's Health Insurance Program Act. The adoption of

emergency rules authorized by this subsection (k) shall be

deemed to be necessary for the public interest, safety, and

welfare.

(l) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2007 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2007, including

rules effective July 1, 2007, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (l) shall be deemed to be necessary for the

public interest, safety, and welfare.

(m) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2008 budget, the Department of Healthcare and Family Services

may adopt emergency rules during fiscal year 2008, including

rules effective July 1, 2008, in accordance with this

subsection to the extent necessary to administer the

Department's responsibilities with respect to amendments to

the State plans and Illinois waivers approved by the federal

Centers for Medicare and Medicaid Services necessitated by the

requirements of Title XIX and Title XXI of the federal Social

Security Act. The adoption of emergency rules authorized by

this subsection (m) shall be deemed to be necessary for the

public interest, safety, and welfare.

(n) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2010 budget, emergency rules to implement any provision of

Public Act 96-45 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2010 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (n) shall be

deemed to be necessary for the public interest, safety, and

welfare. The rulemaking authority granted in this subsection

(n) shall apply only to rules promulgated during Fiscal Year

2010.

(o) In order to provide for the expeditious and timely

implementation of the provisions of the State's fiscal year

2011 budget, emergency rules to implement any provision of

Public Act 96-958 or any other budget initiative authorized by

the 96th General Assembly for fiscal year 2011 may be adopted

in accordance with this Section by the agency charged with

administering that provision or initiative. The adoption of

emergency rules authorized by this subsection (o) is deemed to

be necessary for the public interest, safety, and welfare. The

rulemaking authority granted in this subsection (o) applies

only to rules promulgated on or after July 1, 2010 (the

effective date of Public Act 96-958) through June 30, 2011.

(p) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 97-689,

emergency rules to implement any provision of Public Act 97-689

may be adopted in accordance with this subsection (p) by the

agency charged with administering that provision or

initiative. The 150-day limitation of the effective period of

emergency rules does not apply to rules adopted under this

subsection (p), and the effective period may continue through

June 30, 2013. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (p). The adoption of emergency rules authorized by

this subsection (p) is deemed to be necessary for the public

interest, safety, and welfare.

(q) In order to provide for the expeditious and timely

implementation of the provisions of Articles 7, 8, 9, 11, and

12 of Public Act 98-104, emergency rules to implement any

provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104

may be adopted in accordance with this subsection (q) by the

agency charged with administering that provision or

initiative. The 24-month limitation on the adoption of

emergency rules does not apply to rules adopted under this

subsection (q). The adoption of emergency rules authorized by

this subsection (q) is deemed to be necessary for the public

interest, safety, and welfare.

(r) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 98-651,

emergency rules to implement Public Act 98-651 may be adopted

in accordance with this subsection (r) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (r). The adoption of emergency rules

authorized by this subsection (r) is deemed to be necessary for

the public interest, safety, and welfare.

(s) In order to provide for the expeditious and timely

implementation of the provisions of Sections 5-5b.1 and 5A-2 of

the Illinois Public Aid Code, emergency rules to implement any

provision of Section 5-5b.1 or Section 5A-2 of the Illinois

Public Aid Code may be adopted in accordance with this

subsection (s) by the Department of Healthcare and Family

Services. The rulemaking authority granted in this subsection

(s) shall apply only to those rules adopted prior to July 1,

2015. Notwithstanding any other provision of this Section, any

emergency rule adopted under this subsection (s) shall only

apply to payments made for State fiscal year 2015. The adoption

of emergency rules authorized by this subsection (s) is deemed

to be necessary for the public interest, safety, and welfare.

(t) In order to provide for the expeditious and timely

implementation of the provisions of Article II of Public Act

99-6, emergency rules to implement the changes made by Article

II of Public Act 99-6 to the Emergency Telephone System Act may

be adopted in accordance with this subsection (t) by the

Department of State Police. The rulemaking authority granted in

this subsection (t) shall apply only to those rules adopted

prior to July 1, 2016. The 24-month limitation on the adoption

of emergency rules does not apply to rules adopted under this

subsection (t). The adoption of emergency rules authorized by

this subsection (t) is deemed to be necessary for the public

interest, safety, and welfare.

(u) In order to provide for the expeditious and timely

implementation of the provisions of the Burn Victims Relief

Act, emergency rules to implement any provision of the Act may

be adopted in accordance with this subsection (u) by the

Department of Insurance. The rulemaking authority granted in

this subsection (u) shall apply only to those rules adopted

prior to December 31, 2015. The adoption of emergency rules

authorized by this subsection (u) is deemed to be necessary for

the public interest, safety, and welfare.

(v) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-516,

emergency rules to implement Public Act 99-516 may be adopted

in accordance with this subsection (v) by the Department of

Healthcare and Family Services. The 24-month limitation on the

adoption of emergency rules does not apply to rules adopted

under this subsection (v). The adoption of emergency rules

authorized by this subsection (v) is deemed to be necessary for

the public interest, safety, and welfare.

(w) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-796,

emergency rules to implement the changes made by Public Act

99-796 may be adopted in accordance with this subsection (w) by

the Adjutant General. The adoption of emergency rules

authorized by this subsection (w) is deemed to be necessary for

the public interest, safety, and welfare.

(x) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 99-906,

emergency rules to implement subsection (i) of Section 16-115D,

subsection (g) of Section 16-128A, and subsection (a) of

Section 16-128B of the Public Utilities Act may be adopted in

accordance with this subsection (x) by the Illinois Commerce

Commission. The rulemaking authority granted in this

subsection (x) shall apply only to those rules adopted within

180 days after June 1, 2017 (the effective date of Public Act

99-906). The adoption of emergency rules authorized by this

subsection (x) is deemed to be necessary for the public

interest, safety, and welfare.

(y) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-23,

emergency rules to implement the changes made by Public Act

100-23 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

Section 55-30 of the Alcoholism and Other Drug Abuse and

Dependency Act, and Sections 74 and 75 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (y) by the respective

Department. The adoption of emergency rules authorized by this

subsection (y) is deemed to be necessary for the public

interest, safety, and welfare.

(z) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-554,

emergency rules to implement the changes made by Public Act

100-554 to Section 4.7 of the Lobbyist Registration Act may be

adopted in accordance with this subsection (z) by the Secretary

of State. The adoption of emergency rules authorized by this

subsection (z) is deemed to be necessary for the public

interest, safety, and welfare.

(aa) In order to provide for the expeditious and timely

initial implementation of the changes made to Articles 5, 5A,

12, and 14 of the Illinois Public Aid Code under the provisions

of Public Act 100-581, the Department of Healthcare and Family

Services may adopt emergency rules in accordance with this

subsection (aa). The 24-month limitation on the adoption of

emergency rules does not apply to rules to initially implement

the changes made to Articles 5, 5A, 12, and 14 of the Illinois

Public Aid Code adopted under this subsection (aa). The

adoption of emergency rules authorized by this subsection (aa)

is deemed to be necessary for the public interest, safety, and

welfare.

(bb) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules to implement the changes made by Public Act

100-587 to Section 4.02 of the Illinois Act on the Aging,

Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,

subsection (b) of Section 55-30 of the Alcoholism and Other

Drug Abuse and Dependency Act, Section 5-104 of the Specialized

Mental Health Rehabilitation Act of 2013, and Section 75 and

subsection (b) of Section 74 of the Mental Health and

Developmental Disabilities Administrative Act may be adopted

in accordance with this subsection (bb) by the respective

Department. The adoption of emergency rules authorized by this

subsection (bb) is deemed to be necessary for the public

interest, safety, and welfare.

(cc) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-587,

emergency rules may be adopted in accordance with this

subsection (cc) to implement the changes made by Public Act

100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois

Pension Code by the Board created under Article 14 of the Code;

Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by

the Board created under Article 15 of the Code; and Sections

16-190.5 and 16-190.6 of the Illinois Pension Code by the Board

created under Article 16 of the Code. The adoption of emergency

rules authorized by this subsection (cc) is deemed to be

necessary for the public interest, safety, and welfare.

(dd) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-864,

emergency rules to implement the changes made by Public Act

100-864 to Section 3.35 of the Newborn Metabolic Screening Act

may be adopted in accordance with this subsection (dd) by the

Secretary of State. The adoption of emergency rules authorized

by this subsection (dd) is deemed to be necessary for the

public interest, safety, and welfare.

(ee) In order to provide for the expeditious and timely

implementation of the provisions of Public Act 100-1172 this

amendatory Act of the 100th General Assembly, emergency rules

implementing the Illinois Underground Natural Gas Storage

Safety Act may be adopted in accordance with this subsection by

the Department of Natural Resources. The adoption of emergency

rules authorized by this subsection is deemed to be necessary

for the public interest, safety, and welfare.

(ff) (ee) In order to provide for the expeditious and

timely initial implementation of the changes made to Articles

5A and 14 of the Illinois Public Aid Code under the provisions

of Public Act 100-1181 this amendatory Act of the 100th General

Assembly, the Department of Healthcare and Family Services may

on a one-time-only basis adopt emergency rules in accordance

with this subsection (ff) (ee). The 24-month limitation on the

adoption of emergency rules does not apply to rules to

initially implement the changes made to Articles 5A and 14 of

the Illinois Public Aid Code adopted under this subsection (ff)

(ee). The adoption of emergency rules authorized by this

subsection (ff) (ee) is deemed to be necessary for the public

interest, safety, and welfare.

(gg) (ff) In order to provide for the expeditious and

timely implementation of the provisions of Public Act 101-1

this amendatory Act of the 101st General Assembly, emergency

rules may be adopted by the Department of Labor in accordance

with this subsection (gg) (ff) to implement the changes made by

Public Act 101-1 this amendatory Act of the 101st General

Assembly to the Minimum Wage Law. The adoption of emergency

rules authorized by this subsection (gg) (ff) is deemed to be

necessary for the public interest, safety, and welfare.

(kk) In order to provide for the expeditious and timely

implementation of the provisions of subsection (c) of Section

20 of the Video Gaming Act, emergency rules to implement the

provisions of subsection (c) of Section 20 of the Video Gaming

Act may be adopted in accordance with this subsection (kk) by

the Illinois Gaming Board. The adoption of emergency rules

authorized by this subsection (kk) is deemed to be necessary

for the public interest, safety, and welfare.

(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;

100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.

6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;

100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.

3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)

Section 35-5. The Open Meetings Act is amended by changing

Section 2 as follows:

(5 ILCS 120/2) (from Ch. 102, par. 42)

Sec. 2. Open meetings.

(a) Openness required. All meetings of public bodies shall

be open to the public unless excepted in subsection (c) and

closed in accordance with Section 2a.

(b) Construction of exceptions. The exceptions contained

in subsection (c) are in derogation of the requirement that

public bodies meet in the open, and therefore, the exceptions

are to be strictly construed, extending only to subjects

clearly within their scope. The exceptions authorize but do not

require the holding of a closed meeting to discuss a subject

included within an enumerated exception.

(c) Exceptions. A public body may hold closed meetings to

consider the following subjects:

(1) The appointment, employment, compensation,

discipline, performance, or dismissal of specific

employees of the public body or legal counsel for the

public body, including hearing testimony on a complaint

lodged against an employee of the public body or against

legal counsel for the public body to determine its

validity. However, a meeting to consider an increase in

compensation to a specific employee of a public body that

is subject to the Local Government Wage Increase

Transparency Act may not be closed and shall be open to the

public and posted and held in accordance with this Act.

(2) Collective negotiating matters between the public

body and its employees or their representatives, or

deliberations concerning salary schedules for one or more

classes of employees.

(3) The selection of a person to fill a public office,

as defined in this Act, including a vacancy in a public

office, when the public body is given power to appoint

under law or ordinance, or the discipline, performance or

removal of the occupant of a public office, when the public

body is given power to remove the occupant under law or

ordinance.

(4) Evidence or testimony presented in open hearing, or

in closed hearing where specifically authorized by law, to

a quasi-adjudicative body, as defined in this Act, provided

that the body prepares and makes available for public

inspection a written decision setting forth its

determinative reasoning.

(5) The purchase or lease of real property for the use

of the public body, including meetings held for the purpose

of discussing whether a particular parcel should be

acquired.

(6) The setting of a price for sale or lease of

property owned by the public body.

(7) The sale or purchase of securities, investments, or

investment contracts. This exception shall not apply to the

investment of assets or income of funds deposited into the

Illinois Prepaid Tuition Trust Fund.

(8) Security procedures, school building safety and

security, and the use of personnel and equipment to respond

to an actual, a threatened, or a reasonably potential

danger to the safety of employees, students, staff, the

public, or public property.

(9) Student disciplinary cases.

(10) The placement of individual students in special

education programs and other matters relating to

individual students.

(11) Litigation, when an action against, affecting or

on behalf of the particular public body has been filed and

is pending before a court or administrative tribunal, or

when the public body finds that an action is probable or

imminent, in which case the basis for the finding shall be

recorded and entered into the minutes of the closed

meeting.

(12) The establishment of reserves or settlement of

claims as provided in the Local Governmental and

Governmental Employees Tort Immunity Act, if otherwise the

disposition of a claim or potential claim might be

prejudiced, or the review or discussion of claims, loss or

risk management information, records, data, advice or

communications from or with respect to any insurer of the

public body or any intergovernmental risk management

association or self insurance pool of which the public body

is a member.

(13) Conciliation of complaints of discrimination in

the sale or rental of housing, when closed meetings are

authorized by the law or ordinance prescribing fair housing

practices and creating a commission or administrative

agency for their enforcement.

(14) Informant sources, the hiring or assignment of

undercover personnel or equipment, or ongoing, prior or

future criminal investigations, when discussed by a public

body with criminal investigatory responsibilities.

(15) Professional ethics or performance when

considered by an advisory body appointed to advise a

licensing or regulatory agency on matters germane to the

advisory body's field of competence.

(16) Self evaluation, practices and procedures or

professional ethics, when meeting with a representative of

a statewide association of which the public body is a

member.

(17) The recruitment, credentialing, discipline or

formal peer review of physicians or other health care

professionals, or for the discussion of matters protected

under the federal Patient Safety and Quality Improvement

Act of 2005, and the regulations promulgated thereunder,

including 42 C.F.R. Part 3 (73 FR 70732), or the federal

Health Insurance Portability and Accountability Act of

1996, and the regulations promulgated thereunder,

including 45 C.F.R. Parts 160, 162, and 164, by a hospital,

or other institution providing medical care, that is

operated by the public body.

(18) Deliberations for decisions of the Prisoner

Review Board.

(19) Review or discussion of applications received

under the Experimental Organ Transplantation Procedures

Act.

(20) The classification and discussion of matters

classified as confidential or continued confidential by

the State Government Suggestion Award Board.

(21) Discussion of minutes of meetings lawfully closed

under this Act, whether for purposes of approval by the

body of the minutes or semi-annual review of the minutes as

mandated by Section 2.06.

(22) Deliberations for decisions of the State

Emergency Medical Services Disciplinary Review Board.

(23) The operation by a municipality of a municipal

utility or the operation of a municipal power agency or

municipal natural gas agency when the discussion involves

(i) contracts relating to the purchase, sale, or delivery

of electricity or natural gas or (ii) the results or

conclusions of load forecast studies.

(24) Meetings of a residential health care facility

resident sexual assault and death review team or the

Executive Council under the Abuse Prevention Review Team

Act.

(25) Meetings of an independent team of experts under

Brian's Law.

(26) Meetings of a mortality review team appointed

under the Department of Juvenile Justice Mortality Review

Team Act.

(27) (Blank).

(28) Correspondence and records (i) that may not be

disclosed under Section 11-9 of the Illinois Public Aid

Code or (ii) that pertain to appeals under Section 11-8 of

the Illinois Public Aid Code.

(29) Meetings between internal or external auditors

and governmental audit committees, finance committees, and

their equivalents, when the discussion involves internal

control weaknesses, identification of potential fraud risk

areas, known or suspected frauds, and fraud interviews

conducted in accordance with generally accepted auditing

standards of the United States of America.

(30) Those meetings or portions of meetings of a

fatality review team or the Illinois Fatality Review Team

Advisory Council during which a review of the death of an

eligible adult in which abuse or neglect is suspected,

alleged, or substantiated is conducted pursuant to Section

15 of the Adult Protective Services Act.

(31) Meetings and deliberations for decisions of the

Concealed Carry Licensing Review Board under the Firearm

Concealed Carry Act.

(32) Meetings between the Regional Transportation

Authority Board and its Service Boards when the discussion

involves review by the Regional Transportation Authority

Board of employment contracts under Section 28d of the

Metropolitan Transit Authority Act and Sections 3A.18 and

3B.26 of the Regional Transportation Authority Act.

(33) Those meetings or portions of meetings of the

advisory committee and peer review subcommittee created

under Section 320 of the Illinois Controlled Substances Act

during which specific controlled substance prescriber,

dispenser, or patient information is discussed.

(34) Meetings of the Tax Increment Financing Reform

Task Force under Section 2505-800 of the Department of

Revenue Law of the Civil Administrative Code of Illinois.

(35) Meetings of the group established to discuss

Medicaid capitation rates under Section 5-30.8 of the

Illinois Public Aid Code.

(36) Those deliberations or portions of deliberations

for decisions of the Illinois Gaming Board in which there

is discussed any of the following: (i) personal,

commercial, financial, or other information obtained from

any source that is privileged, proprietary, confidential,

or a trade secret; or (ii) information specifically

exempted from the disclosure by federal or State law.

(d) Definitions. For purposes of this Section:

"Employee" means a person employed by a public body whose

relationship with the public body constitutes an

employer-employee relationship under the usual common law

rules, and who is not an independent contractor.

"Public office" means a position created by or under the

Constitution or laws of this State, the occupant of which is

charged with the exercise of some portion of the sovereign

power of this State. The term "public office" shall include

members of the public body, but it shall not include

organizational positions filled by members thereof, whether

established by law or by a public body itself, that exist to

assist the body in the conduct of its business.

"Quasi-adjudicative body" means an administrative body

charged by law or ordinance with the responsibility to conduct

hearings, receive evidence or testimony and make

determinations based thereon, but does not include local

electoral boards when such bodies are considering petition

challenges.

(e) Final action. No final action may be taken at a closed

meeting. Final action shall be preceded by a public recital of

the nature of the matter being considered and other information

that will inform the public of the business being conducted.

(Source: P.A. 99-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480,

eff. 9-9-15; 99-642, eff. 7-28-16; 99-646, eff. 7-28-16;

99-687, eff. 1-1-17; 100-201, eff. 8-18-17; 100-465, eff.

8-31-17; 100-646, eff. 7-27-18.)

Section 35-10. The State Officials and Employees Ethics Act

is amended by changing Section 5-45 as follows:

(5 ILCS 430/5-45)

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

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

or immediate family member living with such person, shall,

within a period of one year immediately after termination of

State employment, knowingly accept employment or receive

compensation or fees for services from a person or entity if

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

immediately preceding termination of State employment,

participated personally and substantially in the award of State

contracts, or the issuance of State contract change orders,

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

entity, or its parent or subsidiary.

(a-5) No officer, member, or spouse or immediate family

member living with such person shall, during the officer or

member's term in office or within a period of 2 years

immediately leaving office, hold an ownership interest, other

than a passive interest in a publicly traded company, in any

gaming license under the Illinois Gambling Act, the Video

Gaming Act, the Illinois Horse Racing Act of 1975, or the

Sports Wagering Act. Any member of the General Assembly or

spouse or immediate family member living with such person who

has an ownership interest, other than a passive interest in a

publicly traded company, in any gaming license under the

Illinois Gambling Act, the Illinois Horse Racing Act of 1975,

the Video Gaming Act, or the Sports Wagering Act at the time of

the effective date of this amendatory Act of the 101st General

Assembly shall divest himself or herself of such ownership

within one year after the effective date of this amendatory Act

of the 101st General Assembly. No State employee who works for

the Illinois Gaming Board or Illinois Racing Board or spouse or

immediate family member living with such person shall, during

State employment or within a period of 2 years immediately

after termination of State employment, hold an ownership

interest, other than a passive interest in a publicly traded

company, in any gaming license under the Illinois Gambling Act,

the Video Gaming Act, the Illinois Horse Racing Act of 1975, or

the Sports Wagering Act.

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

employee of the executive branch with regulatory or licensing

authority, or spouse or immediate family member living with

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

after termination of State employment, knowingly accept

employment or receive compensation or fees for services from a

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

year immediately preceding termination of State employment,

participated personally and substantially in making a

regulatory or licensing decision that directly applied to the

person or entity, or its parent or subsidiary.

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

amendatory Act of the 96th General Assembly, each executive

branch constitutional officer and legislative leader, the

Auditor General, and the Joint Committee on Legislative Support

Services shall adopt a policy delineating which State positions

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

their duties, may have the authority to participate personally

and substantially in the award of State contracts or in

regulatory or licensing decisions. The Governor shall adopt

such a policy for all State employees of the executive branch

not under the jurisdiction and control of any other executive

branch constitutional officer.

The policies required under subsection (c) of this Section

shall be filed with the appropriate ethics commission

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

the Office of the Auditor General.

(d) Each Inspector General shall have the authority to

determine that additional State positions under his or her

jurisdiction, not otherwise subject to the policies required by

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

notification requirement of subsection (f) below due to their

involvement in the award of State contracts or in regulatory or

licensing decisions.

(e) The Joint Committee on Legislative Support Services,

the Auditor General, and each of the executive branch

constitutional officers and legislative leaders subject to

subsection (c) of this Section shall provide written

notification to all employees in positions subject to the

policies required by subsection (c) or a determination made

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

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

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

An employee receiving notification must certify in writing that

the person was advised of the prohibition and the requirement

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

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

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

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

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

during State employment or within a period of one year

immediately after termination of State employment shall, prior

to accepting such non-State employment, notify the appropriate

Inspector General. Within 10 calendar days after receiving

notification from an employee in a position subject to the

policies required by subsection (c), such Inspector General

shall make a determination as to whether the State employee is

restricted from accepting such employment by subsection (a) or

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

relevant information, an Inspector General shall assess the

effect of the prospective employment or relationship upon

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

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

State employee in those decisions. A determination by an

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

Inspector General, and delivered to the subject of the

determination within 10 calendar days or the person is deemed

eligible for the employment opportunity. For purposes of this

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

members and employees of the legislative branch, the

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

employees of the Office of the Auditor General, the Inspector

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

executive branch officers and employees, the Inspector General

having jurisdiction over the officer or employee. Notice of any

determination of an Inspector General and of any such appeal

shall be given to the ultimate jurisdictional authority, the

Attorney General, and the Executive Ethics Commission.

(g) An Inspector General's determination regarding

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

appropriate Ethics Commission by the person subject to the

decision or the Attorney General no later than the 10th

calendar day after the date of the determination.

On appeal, the Ethics Commission or Auditor General shall

seek, accept, and consider written public comments regarding a

determination. In deciding whether to uphold an Inspector

General's determination, the appropriate Ethics Commission or

Auditor General shall assess, in addition to any other relevant

information, the effect of the prospective employment or

relationship upon the decisions referred to in subsections (a)

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

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

The Ethics Commission shall decide whether to uphold an

Inspector General's determination within 10 calendar days or

the person is deemed eligible for the employment opportunity.

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

shall not, within a period of one year immediately after

termination of office or State employment, knowingly accept

employment or receive compensation or fees for services from a

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

subsidiary, during the year immediately preceding termination

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

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

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

the subject of a regulatory or licensing decision involving the

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

of whether he or she participated personally and substantially

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

of the regulatory or licensing decision in question:

(1) members or officers;

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

Illinois Constitution;

(3) persons whose appointment to office is subject to

the advice and consent of the Senate;

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

division, bureau, authority, or other administrative unit

within the government of this State;

(5) chief procurement officers, State purchasing

officers, and their designees whose duties are directly

related to State procurement; and

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

chiefs of staff, assistant chiefs of staff, and deputy

governors; .

(7) employees of the Illinois Racing Board; and

(8) employees of the Illinois Gaming Board.

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

officers or employees of a regional transit board, as defined

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

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

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

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

defined under Article VII, Section 1 of the Illinois

Constitution, or (v) school districts.

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

Section 35-15. The Alcoholism and Other Drug Abuse and

Dependency Act is amended by changing Section 5-20 as follows:

(20 ILCS 301/5-20)

Sec. 5-20. Gambling disorders.

(a) Subject to appropriation, the Department shall

establish a program for public education, research, and

training regarding gambling disorders and the treatment and

prevention of gambling disorders. Subject to specific

appropriation for these stated purposes, the program must

include all of the following:

(1) Establishment and maintenance of a toll-free "800"

telephone number to provide crisis counseling and referral

services to families experiencing difficulty as a result of

gambling disorders.

(2) Promotion of public awareness regarding the

recognition and prevention of gambling disorders.

(3) Facilitation, through in-service training and

other means, of the availability of effective assistance

programs for gambling disorders.

(4) Conducting studies to identify adults and

juveniles in this State who have, or who are at risk of

developing, gambling disorders.

(b) Subject to appropriation, the Department shall either

establish and maintain the program or contract with a private

or public entity for the establishment and maintenance of the

program. Subject to appropriation, either the Department or the

private or public entity shall implement the toll-free

telephone number, promote public awareness, and conduct

in-service training concerning gambling disorders.

(c) Subject to appropriation, the Department shall produce

and supply the signs specified in Section 10.7 of the Illinois

Lottery Law, Section 34.1 of the Illinois Horse Racing Act of

1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1

of the Charitable Games Act, and Section 13.1 of the Illinois

Riverboat Gambling Act.

(Source: P.A. 100-759, eff. 1-1-19.)

Section 35-20. The Illinois Lottery Law is amended by

changing Section 9.1 as follows:

(20 ILCS 1605/9.1)

Sec. 9.1. Private manager and management agreement.

(a) As used in this Section:

"Offeror" means a person or group of persons that responds

to a request for qualifications under this Section.

"Request for qualifications" means all materials and

documents prepared by the Department to solicit the following

from offerors:

(1) Statements of qualifications.

(2) Proposals to enter into a management agreement,

including the identity of any prospective vendor or vendors

that the offeror intends to initially engage to assist the

offeror in performing its obligations under the management

agreement.

"Final offer" means the last proposal submitted by an

offeror in response to the request for qualifications,

including the identity of any prospective vendor or vendors

that the offeror intends to initially engage to assist the

offeror in performing its obligations under the management

agreement.

"Final offeror" means the offeror ultimately selected by

the Governor to be the private manager for the Lottery under

subsection (h) of this Section.

(b) By September 15, 2010, the Governor shall select a

private manager for the total management of the Lottery with

integrated functions, such as lottery game design, supply of

goods and services, and advertising and as specified in this

Section.

(c) Pursuant to the terms of this subsection, the

Department shall endeavor to expeditiously terminate the

existing contracts in support of the Lottery in effect on the

effective date of this amendatory Act of the 96th General

Assembly in connection with the selection of the private

manager. As part of its obligation to terminate these contracts

and select the private manager, the Department shall establish

a mutually agreeable timetable to transfer the functions of

existing contractors to the private manager so that existing

Lottery operations are not materially diminished or impaired

during the transition. To that end, the Department shall do the

following:

(1) where such contracts contain a provision

authorizing termination upon notice, the Department shall

provide notice of termination to occur upon the mutually

agreed timetable for transfer of functions;

(2) upon the expiration of any initial term or renewal

term of the current Lottery contracts, the Department shall

not renew such contract for a term extending beyond the

mutually agreed timetable for transfer of functions; or

(3) in the event any current contract provides for

termination of that contract upon the implementation of a

contract with the private manager, the Department shall

perform all necessary actions to terminate the contract on

the date that coincides with the mutually agreed timetable

for transfer of functions.

If the contracts to support the current operation of the

Lottery in effect on the effective date of this amendatory Act

of the 96th General Assembly are not subject to termination as

provided for in this subsection (c), then the Department may

include a provision in the contract with the private manager

specifying a mutually agreeable methodology for incorporation.

(c-5) The Department shall include provisions in the

management agreement whereby the private manager shall, for a

fee, and pursuant to a contract negotiated with the Department

(the "Employee Use Contract"), utilize the services of current

Department employees to assist in the administration and

operation of the Lottery. The Department shall be the employer

of all such bargaining unit employees assigned to perform such

work for the private manager, and such employees shall be State

employees, as defined by the Personnel Code. Department

employees shall operate under the same employment policies,

rules, regulations, and procedures, as other employees of the

Department. In addition, neither historical representation

rights under the Illinois Public Labor Relations Act, nor

existing collective bargaining agreements, shall be disturbed

by the management agreement with the private manager for the

management of the Lottery.

(d) The management agreement with the private manager shall

include all of the following:

(1) A term not to exceed 10 years, including any

renewals.

(2) A provision specifying that the Department:

(A) shall exercise actual control over all

significant business decisions;

(A-5) has the authority to direct or countermand

operating decisions by the private manager at any time;

(B) has ready access at any time to information

regarding Lottery operations;

(C) has the right to demand and receive information

from the private manager concerning any aspect of the

Lottery operations at any time; and

(D) retains ownership of all trade names,

trademarks, and intellectual property associated with

the Lottery.

(3) A provision imposing an affirmative duty on the

private manager to provide the Department with material

information and with any information the private manager

reasonably believes the Department would want to know to

enable the Department to conduct the Lottery.

(4) A provision requiring the private manager to

provide the Department with advance notice of any operating

decision that bears significantly on the public interest,

including, but not limited to, decisions on the kinds of

games to be offered to the public and decisions affecting

the relative risk and reward of the games being offered, so

the Department has a reasonable opportunity to evaluate and

countermand that decision.

(5) A provision providing for compensation of the

private manager that may consist of, among other things, a

fee for services and a performance based bonus as

consideration for managing the Lottery, including terms

that may provide the private manager with an increase in

compensation if Lottery revenues grow by a specified

percentage in a given year.

(6) (Blank).

(7) A provision requiring the deposit of all Lottery

proceeds to be deposited into the State Lottery Fund except

as otherwise provided in Section 20 of this Act.

(8) A provision requiring the private manager to locate

its principal office within the State.

(8-5) A provision encouraging that at least 20% of the

cost of contracts entered into for goods and services by

the private manager in connection with its management of

the Lottery, other than contracts with sales agents or

technical advisors, be awarded to businesses that are a

minority-owned business, a women-owned business, or a

business owned by a person with disability, as those terms

are defined in the Business Enterprise for Minorities,

Women, and Persons with Disabilities Act.

(9) A requirement that so long as the private manager

complies with all the conditions of the agreement under the

oversight of the Department, the private manager shall have

the following duties and obligations with respect to the

management of the Lottery:

(A) The right to use equipment and other assets

used in the operation of the Lottery.

(B) The rights and obligations under contracts

with retailers and vendors.

(C) The implementation of a comprehensive security

program by the private manager.

(D) The implementation of a comprehensive system

of internal audits.

(E) The implementation of a program by the private

manager to curb compulsive gambling by persons playing

the Lottery.

(F) A system for determining (i) the type of

Lottery games, (ii) the method of selecting winning

tickets, (iii) the manner of payment of prizes to

holders of winning tickets, (iv) the frequency of

drawings of winning tickets, (v) the method to be used

in selling tickets, (vi) a system for verifying the

validity of tickets claimed to be winning tickets,

(vii) the basis upon which retailer commissions are

established by the manager, and (viii) minimum

payouts.

(10) A requirement that advertising and promotion must

be consistent with Section 7.8a of this Act.

(11) A requirement that the private manager market the

Lottery to those residents who are new, infrequent, or

lapsed players of the Lottery, especially those who are

most likely to make regular purchases on the Internet as

permitted by law.

(12) A code of ethics for the private manager's

officers and employees.

(13) A requirement that the Department monitor and

oversee the private manager's practices and take action

that the Department considers appropriate to ensure that

the private manager is in compliance with the terms of the

management agreement, while allowing the manager, unless

specifically prohibited by law or the management

agreement, to negotiate and sign its own contracts with

vendors.

(14) A provision requiring the private manager to

periodically file, at least on an annual basis, appropriate

financial statements in a form and manner acceptable to the

Department.

(15) Cash reserves requirements.

(16) Procedural requirements for obtaining the prior

approval of the Department when a management agreement or

an interest in a management agreement is sold, assigned,

transferred, or pledged as collateral to secure financing.

(17) Grounds for the termination of the management

agreement by the Department or the private manager.

(18) Procedures for amendment of the agreement.

(19) A provision requiring the private manager to

engage in an open and competitive bidding process for any

procurement having a cost in excess of $50,000 that is not

a part of the private manager's final offer. The process

shall favor the selection of a vendor deemed to have

submitted a proposal that provides the Lottery with the

best overall value. The process shall not be subject to the

provisions of the Illinois Procurement Code, unless

specifically required by the management agreement.

(20) The transition of rights and obligations,

including any associated equipment or other assets used in

the operation of the Lottery, from the manager to any

successor manager of the lottery, including the

Department, following the termination of or foreclosure

upon the management agreement.

(21) Right of use of copyrights, trademarks, and

service marks held by the Department in the name of the

State. The agreement must provide that any use of them by

the manager shall only be for the purpose of fulfilling its

obligations under the management agreement during the term

of the agreement.

(22) The disclosure of any information requested by the

Department to enable it to comply with the reporting

requirements and information requests provided for under

subsection (p) of this Section.

(e) Notwithstanding any other law to the contrary, the

Department shall select a private manager through a competitive

request for qualifications process consistent with Section

20-35 of the Illinois Procurement Code, which shall take into

account:

(1) the offeror's ability to market the Lottery to

those residents who are new, infrequent, or lapsed players

of the Lottery, especially those who are most likely to

make regular purchases on the Internet;

(2) the offeror's ability to address the State's

concern with the social effects of gambling on those who

can least afford to do so;

(3) the offeror's ability to provide the most

successful management of the Lottery for the benefit of the

people of the State based on current and past business

practices or plans of the offeror; and

(4) the offeror's poor or inadequate past performance

in servicing, equipping, operating or managing a lottery on

behalf of Illinois, another State or foreign government and

attracting persons who are not currently regular players of

a lottery.

(f) The Department may retain the services of an advisor or

advisors with significant experience in financial services or

the management, operation, and procurement of goods, services,

and equipment for a government-run lottery to assist in the

preparation of the terms of the request for qualifications and

selection of the private manager. Any prospective advisor

seeking to provide services under this subsection (f) shall

disclose any material business or financial relationship

during the past 3 years with any potential offeror, or with a

contractor or subcontractor presently providing goods,

services, or equipment to the Department to support the

Lottery. The Department shall evaluate the material business or

financial relationship of each prospective advisor. The

Department shall not select any prospective advisor with a

substantial business or financial relationship that the

Department deems to impair the objectivity of the services to

be provided by the prospective advisor. During the course of

the advisor's engagement by the Department, and for a period of

one year thereafter, the advisor shall not enter into any

business or financial relationship with any offeror or any

vendor identified to assist an offeror in performing its

obligations under the management agreement. Any advisor

retained by the Department shall be disqualified from being an

offeror. The Department shall not include terms in the request

for qualifications that provide a material advantage whether

directly or indirectly to any potential offeror, or any

contractor or subcontractor presently providing goods,

services, or equipment to the Department to support the

Lottery, including terms contained in previous responses to

requests for proposals or qualifications submitted to

Illinois, another State or foreign government when those terms

are uniquely associated with a particular potential offeror,

contractor, or subcontractor. The request for proposals

offered by the Department on December 22, 2008 as

"LOT08GAMESYS" and reference number "22016176" is declared

void.

(g) The Department shall select at least 2 offerors as

finalists to potentially serve as the private manager no later

than August 9, 2010. Upon making preliminary selections, the

Department shall schedule a public hearing on the finalists'

proposals and provide public notice of the hearing at least 7

calendar days before the hearing. The notice must include all

of the following:

(1) The date, time, and place of the hearing.

(2) The subject matter of the hearing.

(3) A brief description of the management agreement to

be awarded.

(4) The identity of the offerors that have been

selected as finalists to serve as the private manager.

(5) The address and telephone number of the Department.

(h) At the public hearing, the Department shall (i) provide

sufficient time for each finalist to present and explain its

proposal to the Department and the Governor or the Governor's

designee, including an opportunity to respond to questions

posed by the Department, Governor, or designee and (ii) allow

the public and non-selected offerors to comment on the

presentations. The Governor or a designee shall attend the

public hearing. After the public hearing, the Department shall

have 14 calendar days to recommend to the Governor whether a

management agreement should be entered into with a particular

finalist. After reviewing the Department's recommendation, the

Governor may accept or reject the Department's recommendation,

and shall select a final offeror as the private manager by

publication of a notice in the Illinois Procurement Bulletin on

or before September 15, 2010. The Governor shall include in the

notice a detailed explanation and the reasons why the final

offeror is superior to other offerors and will provide

management services in a manner that best achieves the

objectives of this Section. The Governor shall also sign the

management agreement with the private manager.

(i) Any action to contest the private manager selected by

the Governor under this Section must be brought within 7

calendar days after the publication of the notice of the

designation of the private manager as provided in subsection

(h) of this Section.

(j) The Lottery shall remain, for so long as a private

manager manages the Lottery in accordance with provisions of

this Act, a Lottery conducted by the State, and the State shall

not be authorized to sell or transfer the Lottery to a third

party.

(k) Any tangible personal property used exclusively in

connection with the lottery that is owned by the Department and

leased to the private manager shall be owned by the Department

in the name of the State and shall be considered to be public

property devoted to an essential public and governmental

function.

(l) The Department may exercise any of its powers under

this Section or any other law as necessary or desirable for the

execution of the Department's powers under this Section.

(m) Neither this Section nor any management agreement

entered into under this Section prohibits the General Assembly

from authorizing forms of gambling that are not in direct

competition with the Lottery. The forms of gambling authorized

by this amendatory Act of the 101st General Assembly constitute

authorized forms of gambling that are not in direct competition

with the Lottery.

(n) The private manager shall be subject to a complete

investigation in the third, seventh, and tenth years of the

agreement (if the agreement is for a 10-year term) by the

Department in cooperation with the Auditor General to determine

whether the private manager has complied with this Section and

the management agreement. The private manager shall bear the

cost of an investigation or reinvestigation of the private

manager under this subsection.

(o) The powers conferred by this Section are in addition

and supplemental to the powers conferred by any other law. If

any other law or rule is inconsistent with this Section,

including, but not limited to, provisions of the Illinois

Procurement Code, then this Section controls as to any

management agreement entered into under this Section. This

Section and any rules adopted under this Section contain full

and complete authority for a management agreement between the

Department and a private manager. No law, procedure,

proceeding, publication, notice, consent, approval, order, or

act by the Department or any other officer, Department, agency,

or instrumentality of the State or any political subdivision is

required for the Department to enter into a management

agreement under this Section. This Section contains full and

complete authority for the Department to approve any contracts

entered into by a private manager with a vendor providing

goods, services, or both goods and services to the private

manager under the terms of the management agreement, including

subcontractors of such vendors.

Upon receipt of a written request from the Chief

Procurement Officer, the Department shall provide to the Chief

Procurement Officer a complete and un-redacted copy of the

management agreement or any contract that is subject to the

Department's approval authority under this subsection (o). The

Department shall provide a copy of the agreement or contract to

the Chief Procurement Officer in the time specified by the

Chief Procurement Officer in his or her written request, but no

later than 5 business days after the request is received by the

Department. The Chief Procurement Officer must retain any

portions of the management agreement or of any contract

designated by the Department as confidential, proprietary, or

trade secret information in complete confidence pursuant to

subsection (g) of Section 7 of the Freedom of Information Act.

The Department shall also provide the Chief Procurement Officer

with reasonable advance written notice of any contract that is

pending Department approval.

Notwithstanding any other provision of this Section to the

contrary, the Chief Procurement Officer shall adopt

administrative rules, including emergency rules, to establish

a procurement process to select a successor private manager if

a private management agreement has been terminated. The

selection process shall at a minimum take into account the

criteria set forth in items (1) through (4) of subsection (e)

of this Section and may include provisions consistent with

subsections (f), (g), (h), and (i) of this Section. The Chief

Procurement Officer shall also implement and administer the

adopted selection process upon the termination of a private

management agreement. The Department, after the Chief

Procurement Officer certifies that the procurement process has

been followed in accordance with the rules adopted under this

subsection (o), shall select a final offeror as the private

manager and sign the management agreement with the private

manager.

Except as provided in Sections 21.5, 21.6, 21.7, 21.8,

21.9, and 21.10, and 21.11, 21.10 the Department shall

distribute all proceeds of lottery tickets and shares sold in

the following priority and manner:

(1) The payment of prizes and retailer bonuses.

(2) The payment of costs incurred in the operation and

administration of the Lottery, including the payment of

sums due to the private manager under the management

agreement with the Department.

(3) On the last day of each month or as soon thereafter

as possible, the State Comptroller shall direct and the

State Treasurer shall transfer from the State Lottery Fund

to the Common School Fund an amount that is equal to the

proceeds transferred in the corresponding month of fiscal

year 2009, as adjusted for inflation, to the Common School

Fund.

(4) On or before September 30 of each fiscal year,

deposit any estimated remaining proceeds from the prior

fiscal year, subject to payments under items (1), (2), and

(3), into the Capital Projects Fund. Beginning in fiscal

year 2019, the amount deposited shall be increased or

decreased each year by the amount the estimated payment

differs from the amount determined from each year-end

financial audit. Only remaining net deficits from prior

fiscal years may reduce the requirement to deposit these

funds, as determined by the annual financial audit.

(p) The Department shall be subject to the following

reporting and information request requirements:

(1) the Department shall submit written quarterly

reports to the Governor and the General Assembly on the

activities and actions of the private manager selected

under this Section;

(2) upon request of the Chief Procurement Officer, the

Department shall promptly produce information related to

the procurement activities of the Department and the

private manager requested by the Chief Procurement

Officer; the Chief Procurement Officer must retain

confidential, proprietary, or trade secret information

designated by the Department in complete confidence

pursuant to subsection (g) of Section 7 of the Freedom of

Information Act; and

(3) at least 30 days prior to the beginning of the

Department's fiscal year, the Department shall prepare an

annual written report on the activities of the private

manager selected under this Section and deliver that report

to the Governor and General Assembly.

(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17;

100-587, eff. 6-4-18; 100-647, eff. 7-30-18; 100-1068, eff.

8-24-18; revised 9-20-18.)

Section 35-25. The Department of Revenue Law of the Civil

Administrative Code of Illinois is amended by changing Section

2505-305 as follows:

(20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)

Sec. 2505-305. Investigators.

(a) The Department has the power to appoint investigators

to conduct all investigations, searches, seizures, arrests,

and other duties imposed under the provisions of any law

administered by the Department. Except as provided in

subsection (c), these investigators have and may exercise all

the powers of peace officers solely for the purpose of

enforcing taxing measures administered by the Department.

(b) The Director must authorize to each investigator

employed under this Section and to any other employee of the

Department exercising the powers of a peace officer a distinct

badge that, on its face, (i) clearly states that the badge is

authorized by the Department and (ii) contains a unique

identifying number. No other badge shall be authorized by the

Department.

(c) The Department may enter into agreements with the

Illinois Gaming Board providing that investigators appointed

under this Section shall exercise the peace officer powers set

forth in paragraph (20.6) of subsection (c) of Section 5 of the

Illinois Riverboat Gambling Act.

(Source: P.A. 96-37, eff. 7-13-09.)

Section 35-30. The State Finance Act is amended by changing

Section 6z-45 as follows:

(30 ILCS 105/6z-45)

Sec. 6z-45. The School Infrastructure Fund.

(a) The School Infrastructure Fund is created as a special

fund in the State Treasury.

In addition to any other deposits authorized by law,

beginning January 1, 2000, on the first day of each month, or

as soon thereafter as may be practical, the State Treasurer and

State Comptroller shall transfer the sum of $5,000,000 from the

General Revenue Fund to the School Infrastructure Fund, except

that, notwithstanding any other provision of law, and in

addition to any other transfers that may be provided for by

law, before June 30, 2012, the Comptroller and the Treasurer

shall transfer $45,000,000 from the General Revenue Fund into

the School Infrastructure Fund, and, for fiscal year 2013 only,

the Treasurer and the Comptroller shall transfer $1,250,000

from the General Revenue Fund to the School Infrastructure Fund

on the first day of each month; provided, however, that no such

transfers shall be made from July 1, 2001 through June 30,

2003.

(a-5) Money in the School Infrastructure Fund may be used

to pay the expenses of the State Board of Education, the

Governor's Office of Management and Budget, and the Capital

Development Board in administering programs under the School

Construction Law, the total expenses not to exceed $1,315,000

in any fiscal year.

(b) Subject to the transfer provisions set forth below,

money in the School Infrastructure Fund shall, if and when the

State of Illinois incurs any bonded indebtedness for the

construction of school improvements under subsection (e) of

Section 5 of the General Obligation Bond Act, be set aside and

used for the purpose of paying and discharging annually the

principal and interest on that bonded indebtedness then due and

payable, and for no other purpose.

In addition to other transfers to the General Obligation

Bond Retirement and Interest Fund made pursuant to Section 15

of the General Obligation Bond Act, upon each delivery of bonds

issued for construction of school improvements under the School

Construction Law, the State Comptroller shall compute and

certify to the State Treasurer the total amount of principal

of, interest on, and premium, if any, on such bonds during the

then current and each succeeding fiscal year. With respect to

the interest payable on variable rate bonds, such

certifications shall be calculated at the maximum rate of

interest that may be payable during the fiscal year, after

taking into account any credits permitted in the related

indenture or other instrument against the amount of such

interest required to be appropriated for that period.

On or before the last day of each month, the State

Treasurer and State Comptroller shall transfer from the School

Infrastructure Fund to the General Obligation Bond Retirement

and Interest Fund an amount sufficient to pay the aggregate of

the principal of, interest on, and premium, if any, on the

bonds payable on their next payment date, divided by the number

of monthly transfers occurring between the last previous

payment date (or the delivery date if no payment date has yet

occurred) and the next succeeding payment date. Interest

payable on variable rate bonds shall be calculated at the

maximum rate of interest that may be payable for the relevant

period, after taking into account any credits permitted in the

related indenture or other instrument against the amount of

such interest required to be appropriated for that period.

Interest for which moneys have already been deposited into the

capitalized interest account within the General Obligation

Bond Retirement and Interest Fund shall not be included in the

calculation of the amounts to be transferred under this

subsection.

(b-5) The money deposited into the School Infrastructure

Fund from transfers pursuant to subsections (c-30) and (c-35)

of Section 13 of the Illinois Riverboat Gambling Act shall be

applied, without further direction, as provided in subsection

(b-3) of Section 5-35 of the School Construction Law.

(c) The surplus, if any, in the School Infrastructure Fund

after payments made pursuant to subsections (a-5), (b), and

(b-5) of this Section shall, subject to appropriation, be used

as follows:

First - to make 3 payments to the School Technology

Revolving Loan Fund as follows:

Transfer of $30,000,000 in fiscal year 1999;

Transfer of $20,000,000 in fiscal year 2000; and

Transfer of $10,000,000 in fiscal year 2001.

Second - to pay any amounts due for grants for school

construction projects and debt service under the School

Construction Law.

Third - to pay any amounts due for grants for school

maintenance projects under the School Construction Law.

(Source: P.A. 100-23, eff. 7-6-17.)

Section 35-35. The Illinois Income Tax Act is amended by

changing Sections 201, 303, 304, and 710 as follows:

(35 ILCS 5/201) (from Ch. 120, par. 2-201)

Sec. 201. Tax imposed.

(a) In general. A tax measured by net income is hereby

imposed on every individual, corporation, trust and estate for

each taxable year ending after July 31, 1969 on the privilege

of earning or receiving income in or as a resident of this

State. Such tax shall be in addition to all other occupation or

privilege taxes imposed by this State or by any municipal

corporation or political subdivision thereof.

(b) Rates. The tax imposed by subsection (a) of this

Section shall be determined as follows, except as adjusted by

subsection (d-1):

(1) In the case of an individual, trust or estate, for

taxable years ending prior to July 1, 1989, an amount equal

to 2 1/2% of the taxpayer's net income for the taxable

year.

(2) In the case of an individual, trust or estate, for

taxable years beginning prior to July 1, 1989 and ending

after June 30, 1989, an amount equal to the sum of (i) 2

1/2% of the taxpayer's net income for the period prior to

July 1, 1989, as calculated under Section 202.3, and (ii)

3% of the taxpayer's net income for the period after June

30, 1989, as calculated under Section 202.3.

(3) In the case of an individual, trust or estate, for

taxable years beginning after June 30, 1989, and ending

prior to January 1, 2011, an amount equal to 3% of the

taxpayer's net income for the taxable year.

(4) In the case of an individual, trust, or estate, for

taxable years beginning prior to January 1, 2011, and

ending after December 31, 2010, an amount equal to the sum

of (i) 3% of the taxpayer's net income for the period prior

to January 1, 2011, as calculated under Section 202.5, and

(ii) 5% of the taxpayer's net income for the period after

December 31, 2010, as calculated under Section 202.5.

(5) In the case of an individual, trust, or estate, for

taxable years beginning on or after January 1, 2011, and

ending prior to January 1, 2015, an amount equal to 5% of

the taxpayer's net income for the taxable year.

(5.1) In the case of an individual, trust, or estate,

for taxable years beginning prior to January 1, 2015, and

ending after December 31, 2014, an amount equal to the sum

of (i) 5% of the taxpayer's net income for the period prior

to January 1, 2015, as calculated under Section 202.5, and

(ii) 3.75% of the taxpayer's net income for the period

after December 31, 2014, as calculated under Section 202.5.

(5.2) In the case of an individual, trust, or estate,

for taxable years beginning on or after January 1, 2015,

and ending prior to July 1, 2017, an amount equal to 3.75%

of the taxpayer's net income for the taxable year.

(5.3) In the case of an individual, trust, or estate,

for taxable years beginning prior to July 1, 2017, and

ending after June 30, 2017, an amount equal to the sum of

(i) 3.75% of the taxpayer's net income for the period prior

to July 1, 2017, as calculated under Section 202.5, and

(ii) 4.95% of the taxpayer's net income for the period

after June 30, 2017, as calculated under Section 202.5.

(5.4) In the case of an individual, trust, or estate,

for taxable years beginning on or after July 1, 2017, an

amount equal to 4.95% of the taxpayer's net income for the

taxable year.

(6) In the case of a corporation, for taxable years

ending prior to July 1, 1989, an amount equal to 4% of the

taxpayer's net income for the taxable year.

(7) In the case of a corporation, for taxable years

beginning prior to July 1, 1989 and ending after June 30,

1989, an amount equal to the sum of (i) 4% of the

taxpayer's net income for the period prior to July 1, 1989,

as calculated under Section 202.3, and (ii) 4.8% of the

taxpayer's net income for the period after June 30, 1989,

as calculated under Section 202.3.

(8) In the case of a corporation, for taxable years

beginning after June 30, 1989, and ending prior to January

1, 2011, an amount equal to 4.8% of the taxpayer's net

income for the taxable year.

(9) In the case of a corporation, for taxable years

beginning prior to January 1, 2011, and ending after

December 31, 2010, an amount equal to the sum of (i) 4.8%

of the taxpayer's net income for the period prior to

January 1, 2011, as calculated under Section 202.5, and

(ii) 7% of the taxpayer's net income for the period after

December 31, 2010, as calculated under Section 202.5.

(10) In the case of a corporation, for taxable years

beginning on or after January 1, 2011, and ending prior to

January 1, 2015, an amount equal to 7% of the taxpayer's

net income for the taxable year.

(11) In the case of a corporation, for taxable years

beginning prior to January 1, 2015, and ending after

December 31, 2014, an amount equal to the sum of (i) 7% of

the taxpayer's net income for the period prior to January

1, 2015, as calculated under Section 202.5, and (ii) 5.25%

of the taxpayer's net income for the period after December

31, 2014, as calculated under Section 202.5.

(12) In the case of a corporation, for taxable years

beginning on or after January 1, 2015, and ending prior to

July 1, 2017, an amount equal to 5.25% of the taxpayer's

net income for the taxable year.

(13) In the case of a corporation, for taxable years

beginning prior to July 1, 2017, and ending after June 30,

2017, an amount equal to the sum of (i) 5.25% of the

taxpayer's net income for the period prior to July 1, 2017,

as calculated under Section 202.5, and (ii) 7% of the

taxpayer's net income for the period after June 30, 2017,

as calculated under Section 202.5.

(14) In the case of a corporation, for taxable years

beginning on or after July 1, 2017, an amount equal to 7%

of the taxpayer's net income for the taxable year.

The rates under this subsection (b) are subject to the

provisions of Section 201.5.

(b-5) Surcharge; sale or exchange of assets, properties,

and intangibles of organization gaming licensees. For each of

taxable years 2019 through 2027, a surcharge is imposed on all

taxpayers on income arising from the sale or exchange of

capital assets, depreciable business property, real property

used in the trade or business, and Section 197 intangibles (i)

of an organization licensee under the Illinois Horse Racing Act

of 1975 and (ii) of an organization gaming licensee under the

Illinois Gambling Act. The amount of the surcharge is equal to

the amount of federal income tax liability for the taxable year

attributable to those sales and exchanges. The surcharge

imposed shall not apply if:

(1) the organization gaming license, organization

license, or racetrack property is transferred as a result

of any of the following:

(A) bankruptcy, a receivership, or a debt

adjustment initiated by or against the initial

licensee or the substantial owners of the initial

licensee;

(B) cancellation, revocation, or termination of

any such license by the Illinois Gaming Board or the

Illinois Racing Board;

(C) a determination by the Illinois Gaming Board

that transfer of the license is in the best interests

of Illinois gaming;

(D) the death of an owner of the equity interest in

a licensee;

(E) the acquisition of a controlling interest in

the stock or substantially all of the assets of a

publicly traded company;

(F) a transfer by a parent company to a wholly

owned subsidiary; or

(G) the transfer or sale to or by one person to

another person where both persons were initial owners

of the license when the license was issued; or

(2) the controlling interest in the organization

gaming license, organization license, or racetrack

property is transferred in a transaction to lineal

descendants in which no gain or loss is recognized or as a

result of a transaction in accordance with Section 351 of

the Internal Revenue Code in which no gain or loss is

recognized; or

(3) live horse racing was not conducted in 2010 at a

racetrack located within 3 miles of the Mississippi River

under a license issued pursuant to the Illinois Horse

Racing Act of 1975.

The transfer of an organization gaming license,

organization license, or racetrack property by a person other

than the initial licensee to receive the organization gaming

license is not subject to a surcharge. The Department shall

adopt rules necessary to implement and administer this

subsection.

(c) Personal Property Tax Replacement Income Tax.

Beginning on July 1, 1979 and thereafter, in addition to such

income tax, there is also hereby imposed the Personal Property

Tax Replacement Income Tax measured by net income on every

corporation (including Subchapter S corporations), partnership

and trust, for each taxable year ending after June 30, 1979.

Such taxes are imposed on the privilege of earning or receiving

income in or as a resident of this State. The Personal Property

Tax Replacement Income Tax shall be in addition to the income

tax imposed by subsections (a) and (b) of this Section and in

addition to all other occupation or privilege taxes imposed by

this State or by any municipal corporation or political

subdivision thereof.

(d) Additional Personal Property Tax Replacement Income

Tax Rates. The personal property tax replacement income tax

imposed by this subsection and subsection (c) of this Section

in the case of a corporation, other than a Subchapter S

corporation and except as adjusted by subsection (d-1), shall

be an additional amount equal to 2.85% of such taxpayer's net

income for the taxable year, except that beginning on January

1, 1981, and thereafter, the rate of 2.85% specified in this

subsection shall be reduced to 2.5%, and in the case of a

partnership, trust or a Subchapter S corporation shall be an

additional amount equal to 1.5% of such taxpayer's net income

for the taxable year.

(d-1) Rate reduction for certain foreign insurers. In the

case of a foreign insurer, as defined by Section 35A-5 of the

Illinois Insurance Code, whose state or country of domicile

imposes on insurers domiciled in Illinois a retaliatory tax

(excluding any insurer whose premiums from reinsurance assumed

are 50% or more of its total insurance premiums as determined

under paragraph (2) of subsection (b) of Section 304, except

that for purposes of this determination premiums from

reinsurance do not include premiums from inter-affiliate

reinsurance arrangements), beginning with taxable years ending

on or after December 31, 1999, the sum of the rates of tax

imposed by subsections (b) and (d) shall be reduced (but not

increased) to the rate at which the total amount of tax imposed

under this Act, net of all credits allowed under this Act,

shall equal (i) the total amount of tax that would be imposed

on the foreign insurer's net income allocable to Illinois for

the taxable year by such foreign insurer's state or country of

domicile if that net income were subject to all income taxes

and taxes measured by net income imposed by such foreign

insurer's state or country of domicile, net of all credits

allowed or (ii) a rate of zero if no such tax is imposed on such

income by the foreign insurer's state of domicile. For the

purposes of this subsection (d-1), an inter-affiliate includes

a mutual insurer under common management.

(1) For the purposes of subsection (d-1), in no event

shall the sum of the rates of tax imposed by subsections

(b) and (d) be reduced below the rate at which the sum of:

(A) the total amount of tax imposed on such foreign

insurer under this Act for a taxable year, net of all

credits allowed under this Act, plus

(B) the privilege tax imposed by Section 409 of the

Illinois Insurance Code, the fire insurance company

tax imposed by Section 12 of the Fire Investigation

Act, and the fire department taxes imposed under

Section 11-10-1 of the Illinois Municipal Code,

equals 1.25% for taxable years ending prior to December 31,

2003, or 1.75% for taxable years ending on or after

December 31, 2003, of the net taxable premiums written for

the taxable year, as described by subsection (1) of Section

409 of the Illinois Insurance Code. This paragraph will in

no event increase the rates imposed under subsections (b)

and (d).

(2) Any reduction in the rates of tax imposed by this

subsection shall be applied first against the rates imposed

by subsection (b) and only after the tax imposed by

subsection (a) net of all credits allowed under this

Section other than the credit allowed under subsection (i)

has been reduced to zero, against the rates imposed by

subsection (d).

This subsection (d-1) is exempt from the provisions of

Section 250.

(e) Investment credit. A taxpayer shall be allowed a credit

against the Personal Property Tax Replacement Income Tax for

investment in qualified property.

(1) A taxpayer shall be allowed a credit equal to .5%

of the basis of qualified property placed in service during

the taxable year, provided such property is placed in

service on or after July 1, 1984. There shall be allowed an

additional credit equal to .5% of the basis of qualified

property placed in service during the taxable year,

provided such property is placed in service on or after

July 1, 1986, and the taxpayer's base employment within

Illinois has increased by 1% or more over the preceding

year as determined by the taxpayer's employment records

filed with the Illinois Department of Employment Security.

Taxpayers who are new to Illinois shall be deemed to have

met the 1% growth in base employment for the first year in

which they file employment records with the Illinois

Department of Employment Security. The provisions added to

this Section by Public Act 85-1200 (and restored by Public

Act 87-895) shall be construed as declaratory of existing

law and not as a new enactment. If, in any year, the

increase in base employment within Illinois over the

preceding year is less than 1%, the additional credit shall

be limited to that percentage times a fraction, the

numerator of which is .5% and the denominator of which is

1%, but shall not exceed .5%. The investment credit shall

not be allowed to the extent that it would reduce a

taxpayer's liability in any tax year below zero, nor may

any credit for qualified property be allowed for any year

other than the year in which the property was placed in

service in Illinois. For tax years ending on or after

December 31, 1987, and on or before December 31, 1988, the

credit shall be allowed for the tax year in which the

property is placed in service, or, if the amount of the

credit exceeds the tax liability for that year, whether it

exceeds the original liability or the liability as later

amended, such excess may be carried forward and applied to

the tax liability of the 5 taxable years following the

excess credit years if the taxpayer (i) makes investments

which cause the creation of a minimum of 2,000 full-time

equivalent jobs in Illinois, (ii) is located in an

enterprise zone established pursuant to the Illinois

Enterprise Zone Act and (iii) is certified by the

Department of Commerce and Community Affairs (now

Department of Commerce and Economic Opportunity) as

complying with the requirements specified in clause (i) and

(ii) by July 1, 1986. The Department of Commerce and

Community Affairs (now Department of Commerce and Economic

Opportunity) shall notify the Department of Revenue of all

such certifications immediately. For tax years ending

after December 31, 1988, the credit shall be allowed for

the tax year in which the property is placed in service,

or, if the amount of the credit exceeds the tax liability

for that year, whether it exceeds the original liability or

the liability as later amended, such excess may be carried

forward and applied to the tax liability of the 5 taxable

years following the excess credit years. The credit shall

be applied to the earliest year for which there is a

liability. If there is credit from more than one tax year

that is available to offset a liability, earlier credit

shall be applied first.

(2) The term "qualified property" means property

which:

(A) is tangible, whether new or used, including

buildings and structural components of buildings and

signs that are real property, but not including land or

improvements to real property that are not a structural

component of a building such as landscaping, sewer

lines, local access roads, fencing, parking lots, and

other appurtenances;

(B) is depreciable pursuant to Section 167 of the

Internal Revenue Code, except that "3-year property"

as defined in Section 168(c)(2)(A) of that Code is not

eligible for the credit provided by this subsection

(e);

(C) is acquired by purchase as defined in Section

179(d) of the Internal Revenue Code;

(D) is used in Illinois by a taxpayer who is

primarily engaged in manufacturing, or in mining coal

or fluorite, or in retailing, or was placed in service

on or after July 1, 2006 in a River Edge Redevelopment

Zone established pursuant to the River Edge

Redevelopment Zone Act; and

(E) has not previously been used in Illinois in

such a manner and by such a person as would qualify for

the credit provided by this subsection (e) or

subsection (f).

(3) For purposes of this subsection (e),

"manufacturing" means the material staging and production

of tangible personal property by procedures commonly

regarded as manufacturing, processing, fabrication, or

assembling which changes some existing material into new

shapes, new qualities, or new combinations. For purposes of

this subsection (e) the term "mining" shall have the same

meaning as the term "mining" in Section 613(c) of the

Internal Revenue Code. For purposes of this subsection (e),

the term "retailing" means the sale of tangible personal

property for use or consumption and not for resale, or

services rendered in conjunction with the sale of tangible

personal property for use or consumption and not for

resale. For purposes of this subsection (e), "tangible

personal property" has the same meaning as when that term

is used in the Retailers' Occupation Tax Act, and, for

taxable years ending after December 31, 2008, does not

include the generation, transmission, or distribution of

electricity.

(4) The basis of qualified property shall be the basis

used to compute the depreciation deduction for federal

income tax purposes.

(5) If the basis of the property for federal income tax

depreciation purposes is increased after it has been placed

in service in Illinois by the taxpayer, the amount of such

increase shall be deemed property placed in service on the

date of such increase in basis.

(6) The term "placed in service" shall have the same

meaning as under Section 46 of the Internal Revenue Code.

(7) If during any taxable year, any property ceases to

be qualified property in the hands of the taxpayer within

48 months after being placed in service, or the situs of

any qualified property is moved outside Illinois within 48

months after being placed in service, the Personal Property

Tax Replacement Income Tax for such taxable year shall be

increased. Such increase shall be determined by (i)

recomputing the investment credit which would have been

allowed for the year in which credit for such property was

originally allowed by eliminating such property from such

computation and, (ii) subtracting such recomputed credit

from the amount of credit previously allowed. For the

purposes of this paragraph (7), a reduction of the basis of

qualified property resulting from a redetermination of the

purchase price shall be deemed a disposition of qualified

property to the extent of such reduction.

(8) Unless the investment credit is extended by law,

the basis of qualified property shall not include costs

incurred after December 31, 2018, except for costs incurred

pursuant to a binding contract entered into on or before

December 31, 2018.

(9) Each taxable year ending before December 31, 2000,

a partnership may elect to pass through to its partners the

credits to which the partnership is entitled under this

subsection (e) for the taxable year. A partner may use the

credit allocated to him or her under this paragraph only

against the tax imposed in subsections (c) and (d) of this

Section. If the partnership makes that election, those

credits shall be allocated among the partners in the

partnership in accordance with the rules set forth in

Section 704(b) of the Internal Revenue Code, and the rules

promulgated under that Section, and the allocated amount of

the credits shall be allowed to the partners for that

taxable year. The partnership shall make this election on

its Personal Property Tax Replacement Income Tax return for

that taxable year. The election to pass through the credits

shall be irrevocable.

For taxable years ending on or after December 31, 2000,

a partner that qualifies its partnership for a subtraction

under subparagraph (I) of paragraph (2) of subsection (d)

of Section 203 or a shareholder that qualifies a Subchapter

S corporation for a subtraction under subparagraph (S) of

paragraph (2) of subsection (b) of Section 203 shall be

allowed a credit under this subsection (e) equal to its

share of the credit earned under this subsection (e) during

the taxable year by the partnership or Subchapter S

corporation, determined in accordance with the

determination of income and distributive share of income

under Sections 702 and 704 and Subchapter S of the Internal

Revenue Code. This paragraph is exempt from the provisions

of Section 250.

(f) Investment credit; Enterprise Zone; River Edge

Redevelopment Zone.

(1) A taxpayer shall be allowed a credit against the

tax imposed by subsections (a) and (b) of this Section for

investment in qualified property which is placed in service

in an Enterprise Zone created pursuant to the Illinois

Enterprise Zone Act or, for property placed in service on

or after July 1, 2006, a River Edge Redevelopment Zone

established pursuant to the River Edge Redevelopment Zone

Act. For partners, shareholders of Subchapter S

corporations, and owners of limited liability companies,

if the liability company is treated as a partnership for

purposes of federal and State income taxation, there shall

be allowed a credit under this subsection (f) to be

determined in accordance with the determination of income

and distributive share of income under Sections 702 and 704

and Subchapter S of the Internal Revenue Code. The credit

shall be .5% of the basis for such property. The credit

shall be available only in the taxable year in which the

property is placed in service in the Enterprise Zone or

River Edge Redevelopment Zone and shall not be allowed to

the extent that it would reduce a taxpayer's liability for

the tax imposed by subsections (a) and (b) of this Section

to below zero. For tax years ending on or after December

31, 1985, the credit shall be allowed for the tax year in

which the property is placed in service, or, if the amount

of the credit exceeds the tax liability for that year,

whether it exceeds the original liability or the liability

as later amended, such excess may be carried forward and

applied to the tax liability of the 5 taxable years

following the excess credit year. The credit shall be

applied to the earliest year for which there is a

liability. If there is credit from more than one tax year

that is available to offset a liability, the credit

accruing first in time shall be applied first.

(2) The term qualified property means property which:

(A) is tangible, whether new or used, including

buildings and structural components of buildings;

(B) is depreciable pursuant to Section 167 of the

Internal Revenue Code, except that "3-year property"

as defined in Section 168(c)(2)(A) of that Code is not

eligible for the credit provided by this subsection

(f);

(C) is acquired by purchase as defined in Section

179(d) of the Internal Revenue Code;

(D) is used in the Enterprise Zone or River Edge

Redevelopment Zone by the taxpayer; and

(E) has not been previously used in Illinois in

such a manner and by such a person as would qualify for

the credit provided by this subsection (f) or

subsection (e).

(3) The basis of qualified property shall be the basis

used to compute the depreciation deduction for federal

income tax purposes.

(4) If the basis of the property for federal income tax

depreciation purposes is increased after it has been placed

in service in the Enterprise Zone or River Edge

Redevelopment Zone by the taxpayer, the amount of such

increase shall be deemed property placed in service on the

date of such increase in basis.

(5) The term "placed in service" shall have the same

meaning as under Section 46 of the Internal Revenue Code.

(6) If during any taxable year, any property ceases to

be qualified property in the hands of the taxpayer within

48 months after being placed in service, or the situs of

any qualified property is moved outside the Enterprise Zone

or River Edge Redevelopment Zone within 48 months after

being placed in service, the tax imposed under subsections

(a) and (b) of this Section for such taxable year shall be

increased. Such increase shall be determined by (i)

recomputing the investment credit which would have been

allowed for the year in which credit for such property was

originally allowed by eliminating such property from such

computation, and (ii) subtracting such recomputed credit

from the amount of credit previously allowed. For the

purposes of this paragraph (6), a reduction of the basis of

qualified property resulting from a redetermination of the

purchase price shall be deemed a disposition of qualified

property to the extent of such reduction.

(7) There shall be allowed an additional credit equal

to 0.5% of the basis of qualified property placed in

service during the taxable year in a River Edge

Redevelopment Zone, provided such property is placed in

service on or after July 1, 2006, and the taxpayer's base

employment within Illinois has increased by 1% or more over

the preceding year as determined by the taxpayer's

employment records filed with the Illinois Department of

Employment Security. Taxpayers who are new to Illinois

shall be deemed to have met the 1% growth in base

employment for the first year in which they file employment

records with the Illinois Department of Employment

Security. If, in any year, the increase in base employment

within Illinois over the preceding year is less than 1%,

the additional credit shall be limited to that percentage

times a fraction, the numerator of which is 0.5% and the

denominator of which is 1%, but shall not exceed 0.5%.

(g) (Blank).

(h) Investment credit; High Impact Business.

(1) Subject to subsections (b) and (b-5) of Section 5.5

of the Illinois Enterprise Zone Act, a taxpayer shall be

allowed a credit against the tax imposed by subsections (a)

and (b) of this Section for investment in qualified

property which is placed in service by a Department of

Commerce and Economic Opportunity designated High Impact

Business. The credit shall be .5% of the basis for such

property. The credit shall not be available (i) until the

minimum investments in qualified property set forth in

subdivision (a)(3)(A) of Section 5.5 of the Illinois

Enterprise Zone Act have been satisfied or (ii) until the

time authorized in subsection (b-5) of the Illinois

Enterprise Zone Act for entities designated as High Impact

Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone

Act, and shall not be allowed to the extent that it would

reduce a taxpayer's liability for the tax imposed by

subsections (a) and (b) of this Section to below zero. The

credit applicable to such investments shall be taken in the

taxable year in which such investments have been completed.

The credit for additional investments beyond the minimum

investment by a designated high impact business authorized

under subdivision (a)(3)(A) of Section 5.5 of the Illinois

Enterprise Zone Act shall be available only in the taxable

year in which the property is placed in service and shall

not be allowed to the extent that it would reduce a

taxpayer's liability for the tax imposed by subsections (a)

and (b) of this Section to below zero. For tax years ending

on or after December 31, 1987, the credit shall be allowed

for the tax year in which the property is placed in

service, or, if the amount of the credit exceeds the tax

liability for that year, whether it exceeds the original

liability or the liability as later amended, such excess

may be carried forward and applied to the tax liability of

the 5 taxable years following the excess credit year. The

credit shall be applied to the earliest year for which

there is a liability. If there is credit from more than one

tax year that is available to offset a liability, the

credit accruing first in time shall be applied first.

Changes made in this subdivision (h)(1) by Public Act

88-670 restore changes made by Public Act 85-1182 and

reflect existing law.

(2) The term qualified property means property which:

(A) is tangible, whether new or used, including

buildings and structural components of buildings;

(B) is depreciable pursuant to Section 167 of the

Internal Revenue Code, except that "3-year property"

as defined in Section 168(c)(2)(A) of that Code is not

eligible for the credit provided by this subsection

(h);

(C) is acquired by purchase as defined in Section

179(d) of the Internal Revenue Code; and

(D) is not eligible for the Enterprise Zone

Investment Credit provided by subsection (f) of this

Section.

(3) The basis of qualified property shall be the basis

used to compute the depreciation deduction for federal

income tax purposes.

(4) If the basis of the property for federal income tax

depreciation purposes is increased after it has been placed

in service in a federally designated Foreign Trade Zone or

Sub-Zone located in Illinois by the taxpayer, the amount of

such increase shall be deemed property placed in service on

the date of such increase in basis.

(5) The term "placed in service" shall have the same

meaning as under Section 46 of the Internal Revenue Code.

(6) If during any taxable year ending on or before

December 31, 1996, any property ceases to be qualified

property in the hands of the taxpayer within 48 months

after being placed in service, or the situs of any

qualified property is moved outside Illinois within 48

months after being placed in service, the tax imposed under

subsections (a) and (b) of this Section for such taxable

year shall be increased. Such increase shall be determined

by (i) recomputing the investment credit which would have

been allowed for the year in which credit for such property

was originally allowed by eliminating such property from

such computation, and (ii) subtracting such recomputed

credit from the amount of credit previously allowed. For

the purposes of this paragraph (6), a reduction of the

basis of qualified property resulting from a

redetermination of the purchase price shall be deemed a

disposition of qualified property to the extent of such

reduction.

(7) Beginning with tax years ending after December 31,

1996, if a taxpayer qualifies for the credit under this

subsection (h) and thereby is granted a tax abatement and

the taxpayer relocates its entire facility in violation of

the explicit terms and length of the contract under Section

18-183 of the Property Tax Code, the tax imposed under

subsections (a) and (b) of this Section shall be increased

for the taxable year in which the taxpayer relocated its

facility by an amount equal to the amount of credit

received by the taxpayer under this subsection (h).

(i) Credit for Personal Property Tax Replacement Income

Tax. For tax years ending prior to December 31, 2003, a credit

shall be allowed against the tax imposed by subsections (a) and

(b) of this Section for the tax imposed by subsections (c) and

(d) of this Section. This credit shall be computed by

multiplying the tax imposed by subsections (c) and (d) of this

Section by a fraction, the numerator of which is base income

allocable to Illinois and the denominator of which is Illinois

base income, and further multiplying the product by the tax

rate imposed by subsections (a) and (b) of this Section.

Any credit earned on or after December 31, 1986 under this

subsection which is unused in the year the credit is computed

because it exceeds the tax liability imposed by subsections (a)

and (b) for that year (whether it exceeds the original

liability or the liability as later amended) may be carried

forward and applied to the tax liability imposed by subsections

(a) and (b) of the 5 taxable years following the excess credit

year, provided that no credit may be carried forward to any

year ending on or after December 31, 2003. This credit shall be

applied first to the earliest year for which there is a

liability. If there is a credit under this subsection from more

than one tax year that is available to offset a liability the

earliest credit arising under this subsection shall be applied

first.

If, during any taxable year ending on or after December 31,

1986, the tax imposed by subsections (c) and (d) of this

Section for which a taxpayer has claimed a credit under this

subsection (i) is reduced, the amount of credit for such tax

shall also be reduced. Such reduction shall be determined by

recomputing the credit to take into account the reduced tax

imposed by subsections (c) and (d). If any portion of the

reduced amount of credit has been carried to a different

taxable year, an amended return shall be filed for such taxable

year to reduce the amount of credit claimed.

(j) Training expense credit. Beginning with tax years

ending on or after December 31, 1986 and prior to December 31,

2003, a taxpayer shall be allowed a credit against the tax

imposed by subsections (a) and (b) under this Section for all

amounts paid or accrued, on behalf of all persons employed by

the taxpayer in Illinois or Illinois residents employed outside

of Illinois by a taxpayer, for educational or vocational

training in semi-technical or technical fields or semi-skilled

or skilled fields, which were deducted from gross income in the

computation of taxable income. The credit against the tax

imposed by subsections (a) and (b) shall be 1.6% of such

training expenses. For partners, shareholders of subchapter S

corporations, and owners of limited liability companies, if the

liability company is treated as a partnership for purposes of

federal and State income taxation, there shall be allowed a

credit under this subsection (j) to be determined in accordance

with the determination of income and distributive share of

income under Sections 702 and 704 and subchapter S of the

Internal Revenue Code.

Any credit allowed under this subsection which is unused in

the year the credit is earned may be carried forward to each of

the 5 taxable years following the year for which the credit is

first computed until it is used. This credit shall be applied

first to the earliest year for which there is a liability. If

there is a credit under this subsection from more than one tax

year that is available to offset a liability the earliest

credit arising under this subsection shall be applied first. No

carryforward credit may be claimed in any tax year ending on or

after December 31, 2003.

(k) Research and development credit. For tax years ending

after July 1, 1990 and prior to December 31, 2003, and

beginning again for tax years ending on or after December 31,

2004, and ending prior to January 1, 2022, a taxpayer shall be

allowed a credit against the tax imposed by subsections (a) and

(b) of this Section for increasing research activities in this

State. The credit allowed against the tax imposed by

subsections (a) and (b) shall be equal to 6 1/2% of the

qualifying expenditures for increasing research activities in

this State. For partners, shareholders of subchapter S

corporations, and owners of limited liability companies, if the

liability company is treated as a partnership for purposes of

federal and State income taxation, there shall be allowed a

credit under this subsection to be determined in accordance

with the determination of income and distributive share of

income under Sections 702 and 704 and subchapter S of the

Internal Revenue Code.

For purposes of this subsection, "qualifying expenditures"

means the qualifying expenditures as defined for the federal

credit for increasing research activities which would be

allowable under Section 41 of the Internal Revenue Code and

which are conducted in this State, "qualifying expenditures for

increasing research activities in this State" means the excess

of qualifying expenditures for the taxable year in which

incurred over qualifying expenditures for the base period,

"qualifying expenditures for the base period" means the average

of the qualifying expenditures for each year in the base

period, and "base period" means the 3 taxable years immediately

preceding the taxable year for which the determination is being

made.

Any credit in excess of the tax liability for the taxable

year may be carried forward. A taxpayer may elect to have the

unused credit shown on its final completed return carried over

as a credit against the tax liability for the following 5

taxable years or until it has been fully used, whichever occurs

first; provided that no credit earned in a tax year ending

prior to December 31, 2003 may be carried forward to any year

ending on or after December 31, 2003.

If an unused credit is carried forward to a given year from

2 or more earlier years, that credit arising in the earliest

year will be applied first against the tax liability for the

given year. If a tax liability for the given year still

remains, the credit from the next earliest year will then be

applied, and so on, until all credits have been used or no tax

liability for the given year remains. Any remaining unused

credit or credits then will be carried forward to the next

following year in which a tax liability is incurred, except

that no credit can be carried forward to a year which is more

than 5 years after the year in which the expense for which the

credit is given was incurred.

No inference shall be drawn from this amendatory Act of the

91st General Assembly in construing this Section for taxable

years beginning before January 1, 1999.

It is the intent of the General Assembly that the research

and development credit under this subsection (k) shall apply

continuously for all tax years ending on or after December 31,

2004 and ending prior to January 1, 2022, including, but not

limited to, the period beginning on January 1, 2016 and ending

on the effective date of this amendatory Act of the 100th

General Assembly. All actions taken in reliance on the

continuation of the credit under this subsection (k) by any

taxpayer are hereby validated.

(l) Environmental Remediation Tax Credit.

(i) For tax years ending after December 31, 1997 and on

or before December 31, 2001, a taxpayer shall be allowed a

credit against the tax imposed by subsections (a) and (b)

of this Section for certain amounts paid for unreimbursed

eligible remediation costs, as specified in this

subsection. For purposes of this Section, "unreimbursed

eligible remediation costs" means costs approved by the

Illinois Environmental Protection Agency ("Agency") under

Section 58.14 of the Environmental Protection Act that were

paid in performing environmental remediation at a site for

which a No Further Remediation Letter was issued by the

Agency and recorded under Section 58.10 of the

Environmental Protection Act. The credit must be claimed

for the taxable year in which Agency approval of the

eligible remediation costs is granted. The credit is not

available to any taxpayer if the taxpayer or any related

party caused or contributed to, in any material respect, a

release of regulated substances on, in, or under the site

that was identified and addressed by the remedial action

pursuant to the Site Remediation Program of the

Environmental Protection Act. After the Pollution Control

Board rules are adopted pursuant to the Illinois

Administrative Procedure Act for the administration and

enforcement of Section 58.9 of the Environmental

Protection Act, determinations as to credit availability

for purposes of this Section shall be made consistent with

those rules. For purposes of this Section, "taxpayer"

includes a person whose tax attributes the taxpayer has

succeeded to under Section 381 of the Internal Revenue Code

and "related party" includes the persons disallowed a

deduction for losses by paragraphs (b), (c), and (f)(1) of

Section 267 of the Internal Revenue Code by virtue of being

a related taxpayer, as well as any of its partners. The

credit allowed against the tax imposed by subsections (a)

and (b) shall be equal to 25% of the unreimbursed eligible

remediation costs in excess of $100,000 per site, except

that the $100,000 threshold shall not apply to any site

contained in an enterprise zone as determined by the

Department of Commerce and Community Affairs (now

Department of Commerce and Economic Opportunity). The

total credit allowed shall not exceed $40,000 per year with

a maximum total of $150,000 per site. For partners and

shareholders of subchapter S corporations, there shall be

allowed a credit under this subsection to be determined in

accordance with the determination of income and

distributive share of income under Sections 702 and 704 and

subchapter S of the Internal Revenue Code.

(ii) A credit allowed under this subsection that is

unused in the year the credit is earned may be carried

forward to each of the 5 taxable years following the year

for which the credit is first earned until it is used. The

term "unused credit" does not include any amounts of

unreimbursed eligible remediation costs in excess of the

maximum credit per site authorized under paragraph (i).

This credit shall be applied first to the earliest year for

which there is a liability. If there is a credit under this

subsection from more than one tax year that is available to

offset a liability, the earliest credit arising under this

subsection shall be applied first. A credit allowed under

this subsection may be sold to a buyer as part of a sale of

all or part of the remediation site for which the credit

was granted. The purchaser of a remediation site and the

tax credit shall succeed to the unused credit and remaining

carry-forward period of the seller. To perfect the

transfer, the assignor shall record the transfer in the

chain of title for the site and provide written notice to

the Director of the Illinois Department of Revenue of the

assignor's intent to sell the remediation site and the

amount of the tax credit to be transferred as a portion of

the sale. In no event may a credit be transferred to any

taxpayer if the taxpayer or a related party would not be

eligible under the provisions of subsection (i).

(iii) For purposes of this Section, the term "site"

shall have the same meaning as under Section 58.2 of the

Environmental Protection Act.

(m) Education expense credit. Beginning with tax years

ending after December 31, 1999, a taxpayer who is the custodian

of one or more qualifying pupils shall be allowed a credit

against the tax imposed by subsections (a) and (b) of this

Section for qualified education expenses incurred on behalf of

the qualifying pupils. The credit shall be equal to 25% of

qualified education expenses, but in no event may the total

credit under this subsection claimed by a family that is the

custodian of qualifying pupils exceed (i) $500 for tax years

ending prior to December 31, 2017, and (ii) $750 for tax years

ending on or after December 31, 2017. In no event shall a

credit under this subsection reduce the taxpayer's liability

under this Act to less than zero. Notwithstanding any other

provision of law, for taxable years beginning on or after

January 1, 2017, no taxpayer may claim a credit under this

subsection (m) if the taxpayer's adjusted gross income for the

taxable year exceeds (i) $500,000, in the case of spouses

filing a joint federal tax return or (ii) $250,000, in the case

of all other taxpayers. This subsection is exempt from the

provisions of Section 250 of this Act.

For purposes of this subsection:

"Qualifying pupils" means individuals who (i) are

residents of the State of Illinois, (ii) are under the age of

21 at the close of the school year for which a credit is

sought, and (iii) during the school year for which a credit is

sought were full-time pupils enrolled in a kindergarten through

twelfth grade education program at any school, as defined in

this subsection.

"Qualified education expense" means the amount incurred on

behalf of a qualifying pupil in excess of $250 for tuition,

book fees, and lab fees at the school in which the pupil is

enrolled during the regular school year.

"School" means any public or nonpublic elementary or

secondary school in Illinois that is in compliance with Title

VI of the Civil Rights Act of 1964 and attendance at which

satisfies the requirements of Section 26-1 of the School Code,

except that nothing shall be construed to require a child to

attend any particular public or nonpublic school to qualify for

the credit under this Section.

"Custodian" means, with respect to qualifying pupils, an

Illinois resident who is a parent, the parents, a legal

guardian, or the legal guardians of the qualifying pupils.

(n) River Edge Redevelopment Zone site remediation tax

credit.

(i) For tax years ending on or after December 31, 2006,

a taxpayer shall be allowed a credit against the tax

imposed by subsections (a) and (b) of this Section for

certain amounts paid for unreimbursed eligible remediation

costs, as specified in this subsection. For purposes of

this Section, "unreimbursed eligible remediation costs"

means costs approved by the Illinois Environmental

Protection Agency ("Agency") under Section 58.14a of the

Environmental Protection Act that were paid in performing

environmental remediation at a site within a River Edge

Redevelopment Zone for which a No Further Remediation

Letter was issued by the Agency and recorded under Section

58.10 of the Environmental Protection Act. The credit must

be claimed for the taxable year in which Agency approval of

the eligible remediation costs is granted. The credit is

not available to any taxpayer if the taxpayer or any

related party caused or contributed to, in any material

respect, a release of regulated substances on, in, or under

the site that was identified and addressed by the remedial

action pursuant to the Site Remediation Program of the

Environmental Protection Act. Determinations as to credit

availability for purposes of this Section shall be made

consistent with rules adopted by the Pollution Control

Board pursuant to the Illinois Administrative Procedure

Act for the administration and enforcement of Section 58.9

of the Environmental Protection Act. For purposes of this

Section, "taxpayer" includes a person whose tax attributes

the taxpayer has succeeded to under Section 381 of the

Internal Revenue Code and "related party" includes the

persons disallowed a deduction for losses by paragraphs

(b), (c), and (f)(1) of Section 267 of the Internal Revenue

Code by virtue of being a related taxpayer, as well as any

of its partners. The credit allowed against the tax imposed

by subsections (a) and (b) shall be equal to 25% of the

unreimbursed eligible remediation costs in excess of

$100,000 per site.

(ii) A credit allowed under this subsection that is

unused in the year the credit is earned may be carried

forward to each of the 5 taxable years following the year

for which the credit is first earned until it is used. This

credit shall be applied first to the earliest year for

which there is a liability. If there is a credit under this

subsection from more than one tax year that is available to

offset a liability, the earliest credit arising under this

subsection shall be applied first. A credit allowed under

this subsection may be sold to a buyer as part of a sale of

all or part of the remediation site for which the credit

was granted. The purchaser of a remediation site and the

tax credit shall succeed to the unused credit and remaining

carry-forward period of the seller. To perfect the

transfer, the assignor shall record the transfer in the

chain of title for the site and provide written notice to

the Director of the Illinois Department of Revenue of the

assignor's intent to sell the remediation site and the

amount of the tax credit to be transferred as a portion of

the sale. In no event may a credit be transferred to any

taxpayer if the taxpayer or a related party would not be

eligible under the provisions of subsection (i).

(iii) For purposes of this Section, the term "site"

shall have the same meaning as under Section 58.2 of the

Environmental Protection Act.

(o) For each of taxable years during the Compassionate Use

of Medical Cannabis Pilot Program, a surcharge is imposed on

all taxpayers on income arising from the sale or exchange of

capital assets, depreciable business property, real property

used in the trade or business, and Section 197 intangibles of

an organization registrant under the Compassionate Use of

Medical Cannabis Pilot Program Act. The amount of the surcharge

is equal to the amount of federal income tax liability for the

taxable year attributable to those sales and exchanges. The

surcharge imposed does not apply if:

(1) the medical cannabis cultivation center

registration, medical cannabis dispensary registration, or

the property of a registration is transferred as a result

of any of the following:

(A) bankruptcy, a receivership, or a debt

adjustment initiated by or against the initial

registration or the substantial owners of the initial

registration;

(B) cancellation, revocation, or termination of

any registration by the Illinois Department of Public

Health;

(C) a determination by the Illinois Department of

Public Health that transfer of the registration is in

the best interests of Illinois qualifying patients as

defined by the Compassionate Use of Medical Cannabis

Pilot Program Act;

(D) the death of an owner of the equity interest in

a registrant;

(E) the acquisition of a controlling interest in

the stock or substantially all of the assets of a

publicly traded company;

(F) a transfer by a parent company to a wholly

owned subsidiary; or

(G) the transfer or sale to or by one person to

another person where both persons were initial owners

of the registration when the registration was issued;

or

(2) the cannabis cultivation center registration,

medical cannabis dispensary registration, or the

controlling interest in a registrant's property is

transferred in a transaction to lineal descendants in which

no gain or loss is recognized or as a result of a

transaction in accordance with Section 351 of the Internal

Revenue Code in which no gain or loss is recognized.

(Source: P.A. 100-22, eff. 7-6-17.)

(35 ILCS 5/303) (from Ch. 120, par. 3-303)

Sec. 303. (a) In general. Any item of capital gain or loss,

and any item of income from rents or royalties from real or

tangible personal property, interest, dividends, and patent or

copyright royalties, and prizes awarded under the Illinois

Lottery Law, and, for taxable years ending on or after December

31, 2019, wagering and gambling winnings from Illinois sources

as set forth in subsection (e-1) of this Section, to the extent

such item constitutes nonbusiness income, together with any

item of deduction directly allocable thereto, shall be

allocated by any person other than a resident as provided in

this Section.

(b) Capital gains and losses.

(1) Real property. Capital gains and losses from sales

or exchanges of real property are allocable to this State

if the property is located in this State.

(2) Tangible personal property. Capital gains and

losses from sales or exchanges of tangible personal

property are allocable to this State if, at the time of

such sale or exchange:

(A) The property had its situs in this State; or

(B) The taxpayer had its commercial domicile in

this State and was not taxable in the state in which

the property had its situs.

(3) Intangibles. Capital gains and losses from sales or

exchanges of intangible personal property are allocable to

this State if the taxpayer had its commercial domicile in

this State at the time of such sale or exchange.

(c) Rents and royalties.

(1) Real property. Rents and royalties from real

property are allocable to this State if the property is

located in this State.

(2) Tangible personal property. Rents and royalties

from tangible personal property are allocable to this

State:

(A) If and to the extent that the property is

utilized in this State; or

(B) In their entirety if, at the time such rents or

royalties were paid or accrued, the taxpayer had its

commercial domicile in this State and was not organized

under the laws of or taxable with respect to such rents

or royalties in the state in which the property was

utilized. The extent of utilization of tangible

personal property in a state is determined by

multiplying the rents or royalties derived from such

property by a fraction, the numerator of which is the

number of days of physical location of the property in

the state during the rental or royalty period in the

taxable year and the denominator of which is the number

of days of physical location of the property everywhere

during all rental or royalty periods in the taxable

year. If the physical location of the property during

the rental or royalty period is unknown or

unascertainable by the taxpayer, tangible personal

property is utilized in the state in which the property

was located at the time the rental or royalty payer

obtained possession.

(d) Patent and copyright royalties.

(1) Allocation. Patent and copyright royalties are

allocable to this State:

(A) If and to the extent that the patent or

copyright is utilized by the payer in this State; or

(B) If and to the extent that the patent or

copyright is utilized by the payer in a state in which

the taxpayer is not taxable with respect to such

royalties and, at the time such royalties were paid or

accrued, the taxpayer had its commercial domicile in

this State.

(2) Utilization.

(A) A patent is utilized in a state to the extent

that it is employed in production, fabrication,

manufacturing or other processing in the state or to

the extent that a patented product is produced in the

state. If the basis of receipts from patent royalties

does not permit allocation to states or if the

accounting procedures do not reflect states of

utilization, the patent is utilized in this State if

the taxpayer has its commercial domicile in this State.

(B) A copyright is utilized in a state to the

extent that printing or other publication originates

in the state. If the basis of receipts from copyright

royalties does not permit allocation to states or if

the accounting procedures do not reflect states of

utilization, the copyright is utilized in this State if

the taxpayer has its commercial domicile in this State.

(e) Illinois lottery prizes. Prizes awarded under the

Illinois Lottery Law are allocable to this State. Payments

received in taxable years ending on or after December 31, 2013,

from the assignment of a prize under Section 13.1 of the

Illinois Lottery Law are allocable to this State.

(e-1) Wagering and gambling winnings. Payments received in

taxable years ending on or after December 31, 2019 of winnings

from pari-mutuel wagering conducted at a wagering facility

licensed under the Illinois Horse Racing Act of 1975 and from

gambling games conducted on a riverboat or in a casino or

organization gaming facility licensed under the Illinois

Gambling Act are allocable to this State.

(e-5) Unemployment benefits. Unemployment benefits paid by

the Illinois Department of Employment Security are allocable to

this State.

(f) Taxability in other state. For purposes of allocation

of income pursuant to this Section, a taxpayer is taxable in

another state if:

(1) In that state he is subject to a net income tax, a

franchise tax measured by net income, a franchise tax for

the privilege of doing business, or a corporate stock tax;

or

(2) That state has jurisdiction to subject the taxpayer

to a net income tax regardless of whether, in fact, the

state does or does not.

(g) Cross references.

(1) For allocation of interest and dividends by persons

other than residents, see Section 301(c)(2).

(2) For allocation of nonbusiness income by residents,

see Section 301(a).

(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)

(35 ILCS 5/304) (from Ch. 120, par. 3-304)

Sec. 304. Business income of persons other than residents.

(a) In general. The business income of a person other than

a resident shall be allocated to this State if such person's

business income is derived solely from this State. If a person

other than a resident derives business income from this State

and one or more other states, then, for tax years ending on or

before December 30, 1998, and except as otherwise provided by

this Section, such person's business income shall be

apportioned to this State by multiplying the income by a

fraction, the numerator of which is the sum of the property

factor (if any), the payroll factor (if any) and 200% of the

sales factor (if any), and the denominator of which is 4

reduced by the number of factors other than the sales factor

which have a denominator of zero and by an additional 2 if the

sales factor has a denominator of zero. For tax years ending on

or after December 31, 1998, and except as otherwise provided by

this Section, persons other than residents who derive business

income from this State and one or more other states shall

compute their apportionment factor by weighting their

property, payroll, and sales factors as provided in subsection

(h) of this Section.

(1) Property factor.

(A) The property factor is a fraction, the numerator of

which is the average value of the person's real and

tangible personal property owned or rented and used in the

trade or business in this State during the taxable year and

the denominator of which is the average value of all the

person's real and tangible personal property owned or

rented and used in the trade or business during the taxable

year.

(B) Property owned by the person is valued at its

original cost. Property rented by the person is valued at 8

times the net annual rental rate. Net annual rental rate is

the annual rental rate paid by the person less any annual

rental rate received by the person from sub-rentals.

(C) The average value of property shall be determined

by averaging the values at the beginning and ending of the

taxable year but the Director may require the averaging of

monthly values during the taxable year if reasonably

required to reflect properly the average value of the

person's property.

(2) Payroll factor.

(A) The payroll factor is a fraction, the numerator of

which is the total amount paid in this State during the

taxable year by the person for compensation, and the

denominator of which is the total compensation paid

everywhere during the taxable year.

(B) Compensation is paid in this State if:

(i) The individual's service is performed entirely

within this State;

(ii) The individual's service is performed both

within and without this State, but the service

performed without this State is incidental to the

individual's service performed within this State; or

(iii) Some of the service is performed within this

State and either the base of operations, or if there is

no base of operations, the place from which the service

is directed or controlled is within this State, or the

base of operations or the place from which the service

is directed or controlled is not in any state in which

some part of the service is performed, but the

individual's residence is in this State.

(iv) Compensation paid to nonresident professional

athletes.

(a) General. The Illinois source income of a

nonresident individual who is a member of a

professional athletic team includes the portion of the

individual's total compensation for services performed

as a member of a professional athletic team during the

taxable year which the number of duty days spent within

this State performing services for the team in any

manner during the taxable year bears to the total

number of duty days spent both within and without this

State during the taxable year.

(b) Travel days. Travel days that do not involve

either a game, practice, team meeting, or other similar

team event are not considered duty days spent in this

State. However, such travel days are considered in the

total duty days spent both within and without this

State.

(c) Definitions. For purposes of this subpart

(iv):

(1) The term "professional athletic team"

includes, but is not limited to, any professional

baseball, basketball, football, soccer, or hockey

team.

(2) The term "member of a professional

athletic team" includes those employees who are

active players, players on the disabled list, and

any other persons required to travel and who travel

with and perform services on behalf of a

professional athletic team on a regular basis.

This includes, but is not limited to, coaches,

managers, and trainers.

(3) Except as provided in items (C) and (D) of

this subpart (3), the term "duty days" means all

days during the taxable year from the beginning of

the professional athletic team's official

pre-season training period through the last game

in which the team competes or is scheduled to

compete. Duty days shall be counted for the year in

which they occur, including where a team's

official pre-season training period through the

last game in which the team competes or is

scheduled to compete, occurs during more than one

tax year.

(A) Duty days shall also include days on

which a member of a professional athletic team

performs service for a team on a date that does

not fall within the foregoing period (e.g.,

participation in instructional leagues, the

"All Star Game", or promotional "caravans").

Performing a service for a professional

athletic team includes conducting training and

rehabilitation activities, when such

activities are conducted at team facilities.

(B) Also included in duty days are game

days, practice days, days spent at team

meetings, promotional caravans, preseason

training camps, and days served with the team

through all post-season games in which the team

competes or is scheduled to compete.

(C) Duty days for any person who joins a

team during the period from the beginning of

the professional athletic team's official

pre-season training period through the last

game in which the team competes, or is

scheduled to compete, shall begin on the day

that person joins the team. Conversely, duty

days for any person who leaves a team during

this period shall end on the day that person

leaves the team. Where a person switches teams

during a taxable year, a separate duty-day

calculation shall be made for the period the

person was with each team.

(D) Days for which a member of a

professional athletic team is not compensated

and is not performing services for the team in

any manner, including days when such member of

a professional athletic team has been

suspended without pay and prohibited from

performing any services for the team, shall not

be treated as duty days.

(E) Days for which a member of a

professional athletic team is on the disabled

list and does not conduct rehabilitation

activities at facilities of the team, and is

not otherwise performing services for the team

in Illinois, shall not be considered duty days

spent in this State. All days on the disabled

list, however, are considered to be included in

total duty days spent both within and without

this State.

(4) The term "total compensation for services

performed as a member of a professional athletic

team" means the total compensation received during

the taxable year for services performed:

(A) from the beginning of the official

pre-season training period through the last

game in which the team competes or is scheduled

to compete during that taxable year; and

(B) during the taxable year on a date which

does not fall within the foregoing period

(e.g., participation in instructional leagues,

the "All Star Game", or promotional caravans).

This compensation shall include, but is not

limited to, salaries, wages, bonuses as described

in this subpart, and any other type of compensation

paid during the taxable year to a member of a

professional athletic team for services performed

in that year. This compensation does not include

strike benefits, severance pay, termination pay,

contract or option year buy-out payments,

expansion or relocation payments, or any other

payments not related to services performed for the

team.

For purposes of this subparagraph, "bonuses"

included in "total compensation for services

performed as a member of a professional athletic

team" subject to the allocation described in

Section 302(c)(1) are: bonuses earned as a result

of play (i.e., performance bonuses) during the

season, including bonuses paid for championship,

playoff or "bowl" games played by a team, or for

selection to all-star league or other honorary

positions; and bonuses paid for signing a

contract, unless the payment of the signing bonus

is not conditional upon the signee playing any

games for the team or performing any subsequent

services for the team or even making the team, the

signing bonus is payable separately from the

salary and any other compensation, and the signing

bonus is nonrefundable.

(3) Sales factor.

(A) The sales factor is a fraction, the numerator of

which is the total sales of the person in this State during

the taxable year, and the denominator of which is the total

sales of the person everywhere during the taxable year.

(B) Sales of tangible personal property are in this

State if:

(i) The property is delivered or shipped to a

purchaser, other than the United States government,

within this State regardless of the f. o. b. point or

other conditions of the sale; or

(ii) The property is shipped from an office, store,

warehouse, factory or other place of storage in this

State and either the purchaser is the United States

government or the person is not taxable in the state of

the purchaser; provided, however, that premises owned

or leased by a person who has independently contracted

with the seller for the printing of newspapers,

periodicals or books shall not be deemed to be an

office, store, warehouse, factory or other place of

storage for purposes of this Section. Sales of tangible

personal property are not in this State if the seller

and purchaser would be members of the same unitary

business group but for the fact that either the seller

or purchaser is a person with 80% or more of total

business activity outside of the United States and the

property is purchased for resale.

(B-1) Patents, copyrights, trademarks, and similar

items of intangible personal property.

(i) Gross receipts from the licensing, sale, or

other disposition of a patent, copyright, trademark,

or similar item of intangible personal property, other

than gross receipts governed by paragraph (B-7) of this

item (3), are in this State to the extent the item is

utilized in this State during the year the gross

receipts are included in gross income.

(ii) Place of utilization.

(I) A patent is utilized in a state to the

extent that it is employed in production,

fabrication, manufacturing, or other processing in

the state or to the extent that a patented product

is produced in the state. If a patent is utilized

in more than one state, the extent to which it is

utilized in any one state shall be a fraction equal

to the gross receipts of the licensee or purchaser

from sales or leases of items produced,

fabricated, manufactured, or processed within that

state using the patent and of patented items

produced within that state, divided by the total of

such gross receipts for all states in which the

patent is utilized.

(II) A copyright is utilized in a state to the

extent that printing or other publication

originates in the state. If a copyright is utilized

in more than one state, the extent to which it is

utilized in any one state shall be a fraction equal

to the gross receipts from sales or licenses of

materials printed or published in that state

divided by the total of such gross receipts for all

states in which the copyright is utilized.

(III) Trademarks and other items of intangible

personal property governed by this paragraph (B-1)

are utilized in the state in which the commercial

domicile of the licensee or purchaser is located.

(iii) If the state of utilization of an item of

property governed by this paragraph (B-1) cannot be

determined from the taxpayer's books and records or

from the books and records of any person related to the

taxpayer within the meaning of Section 267(b) of the

Internal Revenue Code, 26 U.S.C. 267, the gross

receipts attributable to that item shall be excluded

from both the numerator and the denominator of the

sales factor.

(B-2) Gross receipts from the license, sale, or other

disposition of patents, copyrights, trademarks, and

similar items of intangible personal property, other than

gross receipts governed by paragraph (B-7) of this item

(3), may be included in the numerator or denominator of the

sales factor only if gross receipts from licenses, sales,

or other disposition of such items comprise more than 50%

of the taxpayer's total gross receipts included in gross

income during the tax year and during each of the 2

immediately preceding tax years; provided that, when a

taxpayer is a member of a unitary business group, such

determination shall be made on the basis of the gross

receipts of the entire unitary business group.

(B-5) For taxable years ending on or after December 31,

2008, except as provided in subsections (ii) through (vii),

receipts from the sale of telecommunications service or

mobile telecommunications service are in this State if the

customer's service address is in this State.

(i) For purposes of this subparagraph (B-5), the

following terms have the following meanings:

"Ancillary services" means services that are

associated with or incidental to the provision of

"telecommunications services", including but not

limited to "detailed telecommunications billing",

"directory assistance", "vertical service", and "voice

mail services".

"Air-to-Ground Radiotelephone service" means a

radio service, as that term is defined in 47 CFR 22.99,

in which common carriers are authorized to offer and

provide radio telecommunications service for hire to

subscribers in aircraft.

"Call-by-call Basis" means any method of charging

for telecommunications services where the price is

measured by individual calls.

"Communications Channel" means a physical or

virtual path of communications over which signals are

transmitted between or among customer channel

termination points.

"Conference bridging service" means an "ancillary

service" that links two or more participants of an

audio or video conference call and may include the

provision of a telephone number. "Conference bridging

service" does not include the "telecommunications

services" used to reach the conference bridge.

"Customer Channel Termination Point" means the

location where the customer either inputs or receives

the communications.

"Detailed telecommunications billing service"

means an "ancillary service" of separately stating

information pertaining to individual calls on a

customer's billing statement.

"Directory assistance" means an "ancillary

service" of providing telephone number information,

and/or address information.

"Home service provider" means the facilities based

carrier or reseller with which the customer contracts

for the provision of mobile telecommunications

services.

"Mobile telecommunications service" means

commercial mobile radio service, as defined in Section

20.3 of Title 47 of the Code of Federal Regulations as

in effect on June 1, 1999.

"Place of primary use" means the street address

representative of where the customer's use of the

telecommunications service primarily occurs, which

must be the residential street address or the primary

business street address of the customer. In the case of

mobile telecommunications services, "place of primary

use" must be within the licensed service area of the

home service provider.

"Post-paid telecommunication service" means the

telecommunications service obtained by making a

payment on a call-by-call basis either through the use

of a credit card or payment mechanism such as a bank

card, travel card, credit card, or debit card, or by

charge made to a telephone number which is not

associated with the origination or termination of the

telecommunications service. A post-paid calling

service includes telecommunications service, except a

prepaid wireless calling service, that would be a

prepaid calling service except it is not exclusively a

telecommunication service.

"Prepaid telecommunication service" means the

right to access exclusively telecommunications

services, which must be paid for in advance and which

enables the origination of calls using an access number

or authorization code, whether manually or

electronically dialed, and that is sold in

predetermined units or dollars of which the number

declines with use in a known amount.

"Prepaid Mobile telecommunication service" means a

telecommunications service that provides the right to

utilize mobile wireless service as well as other

non-telecommunication services, including but not

limited to ancillary services, which must be paid for

in advance that is sold in predetermined units or

dollars of which the number declines with use in a

known amount.

"Private communication service" means a

telecommunication service that entitles the customer

to exclusive or priority use of a communications

channel or group of channels between or among

termination points, regardless of the manner in which

such channel or channels are connected, and includes

switching capacity, extension lines, stations, and any

other associated services that are provided in

connection with the use of such channel or channels.

"Service address" means:

(a) The location of the telecommunications

equipment to which a customer's call is charged and

from which the call originates or terminates,

regardless of where the call is billed or paid;

(b) If the location in line (a) is not known,

service address means the origination point of the

signal of the telecommunications services first

identified by either the seller's

telecommunications system or in information

received by the seller from its service provider

where the system used to transport such signals is

not that of the seller; and

(c) If the locations in line (a) and line (b)

are not known, the service address means the

location of the customer's place of primary use.

"Telecommunications service" means the electronic

transmission, conveyance, or routing of voice, data,

audio, video, or any other information or signals to a

point, or between or among points. The term

"telecommunications service" includes such

transmission, conveyance, or routing in which computer

processing applications are used to act on the form,

code or protocol of the content for purposes of

transmission, conveyance or routing without regard to

whether such service is referred to as voice over

Internet protocol services or is classified by the

Federal Communications Commission as enhanced or value

added. "Telecommunications service" does not include:

(a) Data processing and information services

that allow data to be generated, acquired, stored,

processed, or retrieved and delivered by an

electronic transmission to a purchaser when such

purchaser's primary purpose for the underlying

transaction is the processed data or information;

(b) Installation or maintenance of wiring or

equipment on a customer's premises;

(c) Tangible personal property;

(d) Advertising, including but not limited to

directory advertising;

(e) Billing and collection services provided

to third parties;

(f) Internet access service;

(g) Radio and television audio and video

programming services, regardless of the medium,

including the furnishing of transmission,

conveyance and routing of such services by the

programming service provider. Radio and television

audio and video programming services shall include

but not be limited to cable service as defined in

47 USC 522(6) and audio and video programming

services delivered by commercial mobile radio

service providers, as defined in 47 CFR 20.3;

(h) "Ancillary services"; or

(i) Digital products "delivered

electronically", including but not limited to

software, music, video, reading materials or ring

tones.

"Vertical service" means an "ancillary service"

that is offered in connection with one or more

"telecommunications services", which offers advanced

calling features that allow customers to identify

callers and to manage multiple calls and call

connections, including "conference bridging services".

"Voice mail service" means an "ancillary service"

that enables the customer to store, send or receive

recorded messages. "Voice mail service" does not

include any "vertical services" that the customer may

be required to have in order to utilize the "voice mail

service".

(ii) Receipts from the sale of telecommunications

service sold on an individual call-by-call basis are in

this State if either of the following applies:

(a) The call both originates and terminates in

this State.

(b) The call either originates or terminates

in this State and the service address is located in

this State.

(iii) Receipts from the sale of postpaid

telecommunications service at retail are in this State

if the origination point of the telecommunication

signal, as first identified by the service provider's

telecommunication system or as identified by

information received by the seller from its service

provider if the system used to transport

telecommunication signals is not the seller's, is

located in this State.

(iv) Receipts from the sale of prepaid

telecommunications service or prepaid mobile

telecommunications service at retail are in this State

if the purchaser obtains the prepaid card or similar

means of conveyance at a location in this State.

Receipts from recharging a prepaid telecommunications

service or mobile telecommunications service is in

this State if the purchaser's billing information

indicates a location in this State.

(v) Receipts from the sale of private

communication services are in this State as follows:

(a) 100% of receipts from charges imposed at

each channel termination point in this State.

(b) 100% of receipts from charges for the total

channel mileage between each channel termination

point in this State.

(c) 50% of the total receipts from charges for

service segments when those segments are between 2

customer channel termination points, 1 of which is

located in this State and the other is located

outside of this State, which segments are

separately charged.

(d) The receipts from charges for service

segments with a channel termination point located

in this State and in two or more other states, and

which segments are not separately billed, are in

this State based on a percentage determined by

dividing the number of customer channel

termination points in this State by the total

number of customer channel termination points.

(vi) Receipts from charges for ancillary services

for telecommunications service sold to customers at

retail are in this State if the customer's primary

place of use of telecommunications services associated

with those ancillary services is in this State. If the

seller of those ancillary services cannot determine

where the associated telecommunications are located,

then the ancillary services shall be based on the

location of the purchaser.

(vii) Receipts to access a carrier's network or

from the sale of telecommunication services or

ancillary services for resale are in this State as

follows:

(a) 100% of the receipts from access fees

attributable to intrastate telecommunications

service that both originates and terminates in

this State.

(b) 50% of the receipts from access fees

attributable to interstate telecommunications

service if the interstate call either originates

or terminates in this State.

(c) 100% of the receipts from interstate end

user access line charges, if the customer's

service address is in this State. As used in this

subdivision, "interstate end user access line

charges" includes, but is not limited to, the

surcharge approved by the federal communications

commission and levied pursuant to 47 CFR 69.

(d) Gross receipts from sales of

telecommunication services or from ancillary

services for telecommunications services sold to

other telecommunication service providers for

resale shall be sourced to this State using the

apportionment concepts used for non-resale

receipts of telecommunications services if the

information is readily available to make that

determination. If the information is not readily

available, then the taxpayer may use any other

reasonable and consistent method.

(B-7) For taxable years ending on or after December 31,

2008, receipts from the sale of broadcasting services are

in this State if the broadcasting services are received in

this State. For purposes of this paragraph (B-7), the

following terms have the following meanings:

"Advertising revenue" means consideration received

by the taxpayer in exchange for broadcasting services

or allowing the broadcasting of commercials or

announcements in connection with the broadcasting of

film or radio programming, from sponsorships of the

programming, or from product placements in the

programming.

"Audience factor" means the ratio that the

audience or subscribers located in this State of a

station, a network, or a cable system bears to the

total audience or total subscribers for that station,

network, or cable system. The audience factor for film

or radio programming shall be determined by reference

to the books and records of the taxpayer or by

reference to published rating statistics provided the

method used by the taxpayer is consistently used from

year to year for this purpose and fairly represents the

taxpayer's activity in this State.

"Broadcast" or "broadcasting" or "broadcasting

services" means the transmission or provision of film

or radio programming, whether through the public

airwaves, by cable, by direct or indirect satellite

transmission, or by any other means of communication,

either through a station, a network, or a cable system.

"Film" or "film programming" means the broadcast

on television of any and all performances, events, or

productions, including but not limited to news,

sporting events, plays, stories, or other literary,

commercial, educational, or artistic works, either

live or through the use of video tape, disc, or any

other type of format or medium. Each episode of a

series of films produced for television shall

constitute separate "film" notwithstanding that the

series relates to the same principal subject and is

produced during one or more tax periods.

"Radio" or "radio programming" means the broadcast

on radio of any and all performances, events, or

productions, including but not limited to news,

sporting events, plays, stories, or other literary,

commercial, educational, or artistic works, either

live or through the use of an audio tape, disc, or any

other format or medium. Each episode in a series of

radio programming produced for radio broadcast shall

constitute a separate "radio programming"

notwithstanding that the series relates to the same

principal subject and is produced during one or more

tax periods.

(i) In the case of advertising revenue from

broadcasting, the customer is the advertiser and

the service is received in this State if the

commercial domicile of the advertiser is in this

State.

(ii) In the case where film or radio

programming is broadcast by a station, a network,

or a cable system for a fee or other remuneration

received from the recipient of the broadcast, the

portion of the service that is received in this

State is measured by the portion of the recipients

of the broadcast located in this State.

Accordingly, the fee or other remuneration for

such service that is included in the Illinois

numerator of the sales factor is the total of those

fees or other remuneration received from

recipients in Illinois. For purposes of this

paragraph, a taxpayer may determine the location

of the recipients of its broadcast using the

address of the recipient shown in its contracts

with the recipient or using the billing address of

the recipient in the taxpayer's records.

(iii) In the case where film or radio

programming is broadcast by a station, a network,

or a cable system for a fee or other remuneration

from the person providing the programming, the

portion of the broadcast service that is received

by such station, network, or cable system in this

State is measured by the portion of recipients of

the broadcast located in this State. Accordingly,

the amount of revenue related to such an

arrangement that is included in the Illinois

numerator of the sales factor is the total fee or

other total remuneration from the person providing

the programming related to that broadcast

multiplied by the Illinois audience factor for

that broadcast.

(iv) In the case where film or radio

programming is provided by a taxpayer that is a

network or station to a customer for broadcast in

exchange for a fee or other remuneration from that

customer the broadcasting service is received at

the location of the office of the customer from

which the services were ordered in the regular

course of the customer's trade or business.

Accordingly, in such a case the revenue derived by

the taxpayer that is included in the taxpayer's

Illinois numerator of the sales factor is the

revenue from such customers who receive the

broadcasting service in Illinois.

(v) In the case where film or radio programming

is provided by a taxpayer that is not a network or

station to another person for broadcasting in

exchange for a fee or other remuneration from that

person, the broadcasting service is received at

the location of the office of the customer from

which the services were ordered in the regular

course of the customer's trade or business.

Accordingly, in such a case the revenue derived by

the taxpayer that is included in the taxpayer's

Illinois numerator of the sales factor is the

revenue from such customers who receive the

broadcasting service in Illinois.

(B-8) Gross receipts from winnings under the Illinois

Lottery Law from the assignment of a prize under Section

13.1 of the Illinois Lottery Law are received in this

State. This paragraph (B-8) applies only to taxable years

ending on or after December 31, 2013.

(B-9) For taxable years ending on or after December 31,

2019, gross receipts from winnings from pari-mutuel

wagering conducted at a wagering facility licensed under

the Illinois Horse Racing Act of 1975 or from winnings from

gambling games conducted on a riverboat or in a casino or

organization gaming facility licensed under the Illinois

Gambling Act are in this State.

(C) For taxable years ending before December 31, 2008,

sales, other than sales governed by paragraphs (B), (B-1),

(B-2), and (B-8) are in this State if:

(i) The income-producing activity is performed in

this State; or

(ii) The income-producing activity is performed

both within and without this State and a greater

proportion of the income-producing activity is

performed within this State than without this State,

based on performance costs.

(C-5) For taxable years ending on or after December 31,

2008, sales, other than sales governed by paragraphs (B),

(B-1), (B-2), (B-5), and (B-7), are in this State if any of

the following criteria are met:

(i) Sales from the sale or lease of real property

are in this State if the property is located in this

State.

(ii) Sales from the lease or rental of tangible

personal property are in this State if the property is

located in this State during the rental period. Sales

from the lease or rental of tangible personal property

that is characteristically moving property, including,

but not limited to, motor vehicles, rolling stock,

aircraft, vessels, or mobile equipment are in this

State to the extent that the property is used in this

State.

(iii) In the case of interest, net gains (but not

less than zero) and other items of income from

intangible personal property, the sale is in this State

if:

(a) in the case of a taxpayer who is a dealer

in the item of intangible personal property within

the meaning of Section 475 of the Internal Revenue

Code, the income or gain is received from a

customer in this State. For purposes of this

subparagraph, a customer is in this State if the

customer is an individual, trust or estate who is a

resident of this State and, for all other

customers, if the customer's commercial domicile

is in this State. Unless the dealer has actual

knowledge of the residence or commercial domicile

of a customer during a taxable year, the customer

shall be deemed to be a customer in this State if

the billing address of the customer, as shown in

the records of the dealer, is in this State; or

(b) in all other cases, if the

income-producing activity of the taxpayer is

performed in this State or, if the

income-producing activity of the taxpayer is

performed both within and without this State, if a

greater proportion of the income-producing

activity of the taxpayer is performed within this

State than in any other state, based on performance

costs.

(iv) Sales of services are in this State if the

services are received in this State. For the purposes

of this section, gross receipts from the performance of

services provided to a corporation, partnership, or

trust may only be attributed to a state where that

corporation, partnership, or trust has a fixed place of

business. If the state where the services are received

is not readily determinable or is a state where the

corporation, partnership, or trust receiving the

service does not have a fixed place of business, the

services shall be deemed to be received at the location

of the office of the customer from which the services

were ordered in the regular course of the customer's

trade or business. If the ordering office cannot be

determined, the services shall be deemed to be received

at the office of the customer to which the services are

billed. If the taxpayer is not taxable in the state in

which the services are received, the sale must be

excluded from both the numerator and the denominator of

the sales factor. The Department shall adopt rules

prescribing where specific types of service are

received, including, but not limited to, publishing,

and utility service.

(D) For taxable years ending on or after December 31,

1995, the following items of income shall not be included

in the numerator or denominator of the sales factor:

dividends; amounts included under Section 78 of the

Internal Revenue Code; and Subpart F income as defined in

Section 952 of the Internal Revenue Code. No inference

shall be drawn from the enactment of this paragraph (D) in

construing this Section for taxable years ending before

December 31, 1995.

(E) Paragraphs (B-1) and (B-2) shall apply to tax years

ending on or after December 31, 1999, provided that a

taxpayer may elect to apply the provisions of these

paragraphs to prior tax years. Such election shall be made

in the form and manner prescribed by the Department, shall

be irrevocable, and shall apply to all tax years; provided

that, if a taxpayer's Illinois income tax liability for any

tax year, as assessed under Section 903 prior to January 1,

1999, was computed in a manner contrary to the provisions

of paragraphs (B-1) or (B-2), no refund shall be payable to

the taxpayer for that tax year to the extent such refund is

the result of applying the provisions of paragraph (B-1) or

(B-2) retroactively. In the case of a unitary business

group, such election shall apply to all members of such

group for every tax year such group is in existence, but

shall not apply to any taxpayer for any period during which

that taxpayer is not a member of such group.

(b) Insurance companies.

(1) In general. Except as otherwise provided by

paragraph (2), business income of an insurance company for

a taxable year shall be apportioned to this State by

multiplying such income by a fraction, the numerator of

which is the direct premiums written for insurance upon

property or risk in this State, and the denominator of

which is the direct premiums written for insurance upon

property or risk everywhere. For purposes of this

subsection, the term "direct premiums written" means the

total amount of direct premiums written, assessments and

annuity considerations as reported for the taxable year on

the annual statement filed by the company with the Illinois

Director of Insurance in the form approved by the National

Convention of Insurance Commissioners or such other form as

may be prescribed in lieu thereof.

(2) Reinsurance. If the principal source of premiums

written by an insurance company consists of premiums for

reinsurance accepted by it, the business income of such

company shall be apportioned to this State by multiplying

such income by a fraction, the numerator of which is the

sum of (i) direct premiums written for insurance upon

property or risk in this State, plus (ii) premiums written

for reinsurance accepted in respect of property or risk in

this State, and the denominator of which is the sum of

(iii) direct premiums written for insurance upon property

or risk everywhere, plus (iv) premiums written for

reinsurance accepted in respect of property or risk

everywhere. For purposes of this paragraph, premiums

written for reinsurance accepted in respect of property or

risk in this State, whether or not otherwise determinable,

may, at the election of the company, be determined on the

basis of the proportion which premiums written for

reinsurance accepted from companies commercially domiciled

in Illinois bears to premiums written for reinsurance

accepted from all sources, or, alternatively, in the

proportion which the sum of the direct premiums written for

insurance upon property or risk in this State by each

ceding company from which reinsurance is accepted bears to

the sum of the total direct premiums written by each such

ceding company for the taxable year. The election made by a

company under this paragraph for its first taxable year

ending on or after December 31, 2011, shall be binding for

that company for that taxable year and for all subsequent

taxable years, and may be altered only with the written

permission of the Department, which shall not be

unreasonably withheld.

(c) Financial organizations.

(1) In general. For taxable years ending before

December 31, 2008, business income of a financial

organization shall be apportioned to this State by

multiplying such income by a fraction, the numerator of

which is its business income from sources within this

State, and the denominator of which is its business income

from all sources. For the purposes of this subsection, the

business income of a financial organization from sources

within this State is the sum of the amounts referred to in

subparagraphs (A) through (E) following, but excluding the

adjusted income of an international banking facility as

determined in paragraph (2):

(A) Fees, commissions or other compensation for

financial services rendered within this State;

(B) Gross profits from trading in stocks, bonds or

other securities managed within this State;

(C) Dividends, and interest from Illinois

customers, which are received within this State;

(D) Interest charged to customers at places of

business maintained within this State for carrying

debit balances of margin accounts, without deduction

of any costs incurred in carrying such accounts; and

(E) Any other gross income resulting from the

operation as a financial organization within this

State. In computing the amounts referred to in

paragraphs (A) through (E) of this subsection, any

amount received by a member of an affiliated group

(determined under Section 1504(a) of the Internal

Revenue Code but without reference to whether any such

corporation is an "includible corporation" under

Section 1504(b) of the Internal Revenue Code) from

another member of such group shall be included only to

the extent such amount exceeds expenses of the

recipient directly related thereto.

(2) International Banking Facility. For taxable years

ending before December 31, 2008:

(A) Adjusted Income. The adjusted income of an

international banking facility is its income reduced

by the amount of the floor amount.

(B) Floor Amount. The floor amount shall be the

amount, if any, determined by multiplying the income of

the international banking facility by a fraction, not

greater than one, which is determined as follows:

(i) The numerator shall be:

The average aggregate, determined on a

quarterly basis, of the financial organization's

loans to banks in foreign countries, to foreign

domiciled borrowers (except where secured

primarily by real estate) and to foreign

governments and other foreign official

institutions, as reported for its branches,

agencies and offices within the state on its

"Consolidated Report of Condition", Schedule A,

Lines 2.c., 5.b., and 7.a., which was filed with

the Federal Deposit Insurance Corporation and

other regulatory authorities, for the year 1980,

minus

The average aggregate, determined on a

quarterly basis, of such loans (other than loans of

an international banking facility), as reported by

the financial institution for its branches,

agencies and offices within the state, on the

corresponding Schedule and lines of the

Consolidated Report of Condition for the current

taxable year, provided, however, that in no case

shall the amount determined in this clause (the

subtrahend) exceed the amount determined in the

preceding clause (the minuend); and

(ii) the denominator shall be the average

aggregate, determined on a quarterly basis, of the

international banking facility's loans to banks in

foreign countries, to foreign domiciled borrowers

(except where secured primarily by real estate)

and to foreign governments and other foreign

official institutions, which were recorded in its

financial accounts for the current taxable year.

(C) Change to Consolidated Report of Condition and

in Qualification. In the event the Consolidated Report

of Condition which is filed with the Federal Deposit

Insurance Corporation and other regulatory authorities

is altered so that the information required for

determining the floor amount is not found on Schedule

A, lines 2.c., 5.b. and 7.a., the financial institution

shall notify the Department and the Department may, by

regulations or otherwise, prescribe or authorize the

use of an alternative source for such information. The

financial institution shall also notify the Department

should its international banking facility fail to

qualify as such, in whole or in part, or should there

be any amendment or change to the Consolidated Report

of Condition, as originally filed, to the extent such

amendment or change alters the information used in

determining the floor amount.

(3) For taxable years ending on or after December 31,

2008, the business income of a financial organization shall

be apportioned to this State by multiplying such income by

a fraction, the numerator of which is its gross receipts

from sources in this State or otherwise attributable to

this State's marketplace and the denominator of which is

its gross receipts everywhere during the taxable year.

"Gross receipts" for purposes of this subparagraph (3)

means gross income, including net taxable gain on

disposition of assets, including securities and money

market instruments, when derived from transactions and

activities in the regular course of the financial

organization's trade or business. The following examples

are illustrative:

(i) Receipts from the lease or rental of real or

tangible personal property are in this State if the

property is located in this State during the rental

period. Receipts from the lease or rental of tangible

personal property that is characteristically moving

property, including, but not limited to, motor

vehicles, rolling stock, aircraft, vessels, or mobile

equipment are from sources in this State to the extent

that the property is used in this State.

(ii) Interest income, commissions, fees, gains on

disposition, and other receipts from assets in the

nature of loans that are secured primarily by real

estate or tangible personal property are from sources

in this State if the security is located in this State.

(iii) Interest income, commissions, fees, gains on

disposition, and other receipts from consumer loans

that are not secured by real or tangible personal

property are from sources in this State if the debtor

is a resident of this State.

(iv) Interest income, commissions, fees, gains on

disposition, and other receipts from commercial loans

and installment obligations that are not secured by

real or tangible personal property are from sources in

this State if the proceeds of the loan are to be

applied in this State. If it cannot be determined where

the funds are to be applied, the income and receipts

are from sources in this State if the office of the

borrower from which the loan was negotiated in the

regular course of business is located in this State. If

the location of this office cannot be determined, the

income and receipts shall be excluded from the

numerator and denominator of the sales factor.

(v) Interest income, fees, gains on disposition,

service charges, merchant discount income, and other

receipts from credit card receivables are from sources

in this State if the card charges are regularly billed

to a customer in this State.

(vi) Receipts from the performance of services,

including, but not limited to, fiduciary, advisory,

and brokerage services, are in this State if the

services are received in this State within the meaning

of subparagraph (a)(3)(C-5)(iv) of this Section.

(vii) Receipts from the issuance of travelers

checks and money orders are from sources in this State

if the checks and money orders are issued from a

location within this State.

(viii) Receipts from investment assets and

activities and trading assets and activities are

included in the receipts factor as follows:

(1) Interest, dividends, net gains (but not

less than zero) and other income from investment

assets and activities from trading assets and

activities shall be included in the receipts

factor. Investment assets and activities and

trading assets and activities include but are not

limited to: investment securities; trading account

assets; federal funds; securities purchased and

sold under agreements to resell or repurchase;

options; futures contracts; forward contracts;

notional principal contracts such as swaps;

equities; and foreign currency transactions. With

respect to the investment and trading assets and

activities described in subparagraphs (A) and (B)

of this paragraph, the receipts factor shall

include the amounts described in such

subparagraphs.

(A) The receipts factor shall include the

amount by which interest from federal funds

sold and securities purchased under resale

agreements exceeds interest expense on federal

funds purchased and securities sold under

repurchase agreements.

(B) The receipts factor shall include the

amount by which interest, dividends, gains and

other income from trading assets and

activities, including but not limited to

assets and activities in the matched book, in

the arbitrage book, and foreign currency

transactions, exceed amounts paid in lieu of

interest, amounts paid in lieu of dividends,

and losses from such assets and activities.

(2) The numerator of the receipts factor

includes interest, dividends, net gains (but not

less than zero), and other income from investment

assets and activities and from trading assets and

activities described in paragraph (1) of this

subsection that are attributable to this State.

(A) The amount of interest, dividends, net

gains (but not less than zero), and other

income from investment assets and activities

in the investment account to be attributed to

this State and included in the numerator is

determined by multiplying all such income from

such assets and activities by a fraction, the

numerator of which is the gross income from

such assets and activities which are properly

assigned to a fixed place of business of the

taxpayer within this State and the denominator

of which is the gross income from all such

assets and activities.

(B) The amount of interest from federal

funds sold and purchased and from securities

purchased under resale agreements and

securities sold under repurchase agreements

attributable to this State and included in the

numerator is determined by multiplying the

amount described in subparagraph (A) of

paragraph (1) of this subsection from such

funds and such securities by a fraction, the

numerator of which is the gross income from

such funds and such securities which are

properly assigned to a fixed place of business

of the taxpayer within this State and the

denominator of which is the gross income from

all such funds and such securities.

(C) The amount of interest, dividends,

gains, and other income from trading assets and

activities, including but not limited to

assets and activities in the matched book, in

the arbitrage book and foreign currency

transactions (but excluding amounts described

in subparagraphs (A) or (B) of this paragraph),

attributable to this State and included in the

numerator is determined by multiplying the

amount described in subparagraph (B) of

paragraph (1) of this subsection by a fraction,

the numerator of which is the gross income from

such trading assets and activities which are

properly assigned to a fixed place of business

of the taxpayer within this State and the

denominator of which is the gross income from

all such assets and activities.

(D) Properly assigned, for purposes of

this paragraph (2) of this subsection, means

the investment or trading asset or activity is

assigned to the fixed place of business with

which it has a preponderance of substantive

contacts. An investment or trading asset or

activity assigned by the taxpayer to a fixed

place of business without the State shall be

presumed to have been properly assigned if:

(i) the taxpayer has assigned, in the

regular course of its business, such asset

or activity on its records to a fixed place

of business consistent with federal or

state regulatory requirements;

(ii) such assignment on its records is

based upon substantive contacts of the

asset or activity to such fixed place of

business; and

(iii) the taxpayer uses such records

reflecting assignment of such assets or

activities for the filing of all state and

local tax returns for which an assignment

of such assets or activities to a fixed

place of business is required.

(E) The presumption of proper assignment

of an investment or trading asset or activity

provided in subparagraph (D) of paragraph (2)

of this subsection may be rebutted upon a

showing by the Department, supported by a

preponderance of the evidence, that the

preponderance of substantive contacts

regarding such asset or activity did not occur

at the fixed place of business to which it was

assigned on the taxpayer's records. If the

fixed place of business that has a

preponderance of substantive contacts cannot

be determined for an investment or trading

asset or activity to which the presumption in

subparagraph (D) of paragraph (2) of this

subsection does not apply or with respect to

which that presumption has been rebutted, that

asset or activity is properly assigned to the

state in which the taxpayer's commercial

domicile is located. For purposes of this

subparagraph (E), it shall be presumed,

subject to rebuttal, that taxpayer's

commercial domicile is in the state of the

United States or the District of Columbia to

which the greatest number of employees are

regularly connected with the management of the

investment or trading income or out of which

they are working, irrespective of where the

services of such employees are performed, as of

the last day of the taxable year.

(4) (Blank).

(5) (Blank).

(c-1) Federally regulated exchanges. For taxable years

ending on or after December 31, 2012, business income of a

federally regulated exchange shall, at the option of the

federally regulated exchange, be apportioned to this State by

multiplying such income by a fraction, the numerator of which

is its business income from sources within this State, and the

denominator of which is its business income from all sources.

For purposes of this subsection, the business income within

this State of a federally regulated exchange is the sum of the

following:

(1) Receipts attributable to transactions executed on

a physical trading floor if that physical trading floor is

located in this State.

(2) Receipts attributable to all other matching,

execution, or clearing transactions, including without

limitation receipts from the provision of matching,

execution, or clearing services to another entity,

multiplied by (i) for taxable years ending on or after

December 31, 2012 but before December 31, 2013, 63.77%; and

(ii) for taxable years ending on or after December 31,

2013, 27.54%.

(3) All other receipts not governed by subparagraphs

(1) or (2) of this subsection (c-1), to the extent the

receipts would be characterized as "sales in this State"

under item (3) of subsection (a) of this Section.

"Federally regulated exchange" means (i) a "registered

entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),

or (C), (ii) an "exchange" or "clearing agency" within the

meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such

entities regulated under any successor regulatory structure to

the foregoing, and (iv) all taxpayers who are members of the

same unitary business group as a federally regulated exchange,

determined without regard to the prohibition in Section

1501(a)(27) of this Act against including in a unitary business

group taxpayers who are ordinarily required to apportion

business income under different subsections of this Section;

provided that this subparagraph (iv) shall apply only if 50% or

more of the business receipts of the unitary business group

determined by application of this subparagraph (iv) for the

taxable year are attributable to the matching, execution, or

clearing of transactions conducted by an entity described in

subparagraph (i), (ii), or (iii) of this paragraph.

In no event shall the Illinois apportionment percentage

computed in accordance with this subsection (c-1) for any

taxpayer for any tax year be less than the Illinois

apportionment percentage computed under this subsection (c-1)

for that taxpayer for the first full tax year ending on or

after December 31, 2013 for which this subsection (c-1) applied

to the taxpayer.

(d) Transportation services. For taxable years ending

before December 31, 2008, business income derived from

furnishing transportation services shall be apportioned to

this State in accordance with paragraphs (1) and (2):

(1) Such business income (other than that derived from

transportation by pipeline) shall be apportioned to this

State by multiplying such income by a fraction, the

numerator of which is the revenue miles of the person in

this State, and the denominator of which is the revenue

miles of the person everywhere. For purposes of this

paragraph, a revenue mile is the transportation of 1

passenger or 1 net ton of freight the distance of 1 mile

for a consideration. Where a person is engaged in the

transportation of both passengers and freight, the

fraction above referred to shall be determined by means of

an average of the passenger revenue mile fraction and the

freight revenue mile fraction, weighted to reflect the

person's

(A) relative railway operating income from total

passenger and total freight service, as reported to the

Interstate Commerce Commission, in the case of

transportation by railroad, and

(B) relative gross receipts from passenger and

freight transportation, in case of transportation

other than by railroad.

(2) Such business income derived from transportation

by pipeline shall be apportioned to this State by

multiplying such income by a fraction, the numerator of

which is the revenue miles of the person in this State, and

the denominator of which is the revenue miles of the person

everywhere. For the purposes of this paragraph, a revenue

mile is the transportation by pipeline of 1 barrel of oil,

1,000 cubic feet of gas, or of any specified quantity of

any other substance, the distance of 1 mile for a

consideration.

(3) For taxable years ending on or after December 31,

2008, business income derived from providing

transportation services other than airline services shall

be apportioned to this State by using a fraction, (a) the

numerator of which shall be (i) all receipts from any

movement or shipment of people, goods, mail, oil, gas, or

any other substance (other than by airline) that both

originates and terminates in this State, plus (ii) that

portion of the person's gross receipts from movements or

shipments of people, goods, mail, oil, gas, or any other

substance (other than by airline) that originates in one

state or jurisdiction and terminates in another state or

jurisdiction, that is determined by the ratio that the

miles traveled in this State bears to total miles

everywhere and (b) the denominator of which shall be all

revenue derived from the movement or shipment of people,

goods, mail, oil, gas, or any other substance (other than

by airline). Where a taxpayer is engaged in the

transportation of both passengers and freight, the

fraction above referred to shall first be determined

separately for passenger miles and freight miles. Then an

average of the passenger miles fraction and the freight

miles fraction shall be weighted to reflect the taxpayer's:

(A) relative railway operating income from total

passenger and total freight service, as reported to the

Surface Transportation Board, in the case of

transportation by railroad; and

(B) relative gross receipts from passenger and

freight transportation, in case of transportation

other than by railroad.

(4) For taxable years ending on or after December 31,

2008, business income derived from furnishing airline

transportation services shall be apportioned to this State

by multiplying such income by a fraction, the numerator of

which is the revenue miles of the person in this State, and

the denominator of which is the revenue miles of the person

everywhere. For purposes of this paragraph, a revenue mile

is the transportation of one passenger or one net ton of

freight the distance of one mile for a consideration. If a

person is engaged in the transportation of both passengers

and freight, the fraction above referred to shall be

determined by means of an average of the passenger revenue

mile fraction and the freight revenue mile fraction,

weighted to reflect the person's relative gross receipts

from passenger and freight airline transportation.

(e) Combined apportionment. Where 2 or more persons are

engaged in a unitary business as described in subsection

(a)(27) of Section 1501, a part of which is conducted in this

State by one or more members of the group, the business income

attributable to this State by any such member or members shall

be apportioned by means of the combined apportionment method.

(f) Alternative allocation. If the allocation and

apportionment provisions of subsections (a) through (e) and of

subsection (h) do not, for taxable years ending before December

31, 2008, fairly represent the extent of a person's business

activity in this State, or, for taxable years ending on or

after December 31, 2008, fairly represent the market for the

person's goods, services, or other sources of business income,

the person may petition for, or the Director may, without a

petition, permit or require, in respect of all or any part of

the person's business activity, if reasonable:

(1) Separate accounting;

(2) The exclusion of any one or more factors;

(3) The inclusion of one or more additional factors

which will fairly represent the person's business

activities or market in this State; or

(4) The employment of any other method to effectuate an

equitable allocation and apportionment of the person's

business income.

(g) Cross reference. For allocation of business income by

residents, see Section 301(a).

(h) For tax years ending on or after December 31, 1998, the

apportionment factor of persons who apportion their business

income to this State under subsection (a) shall be equal to:

(1) for tax years ending on or after December 31, 1998

and before December 31, 1999, 16 2/3% of the property

factor plus 16 2/3% of the payroll factor plus 66 2/3% of

the sales factor;

(2) for tax years ending on or after December 31, 1999

and before December 31, 2000, 8 1/3% of the property factor

plus 8 1/3% of the payroll factor plus 83 1/3% of the sales

factor;

(3) for tax years ending on or after December 31, 2000,

the sales factor.

If, in any tax year ending on or after December 31, 1998 and

before December 31, 2000, the denominator of the payroll,

property, or sales factor is zero, the apportionment factor

computed in paragraph (1) or (2) of this subsection for that

year shall be divided by an amount equal to 100% minus the

percentage weight given to each factor whose denominator is

equal to zero.

(Source: P.A. 99-642, eff. 7-28-16; 100-201, eff. 8-18-17.)

(35 ILCS 5/710) (from Ch. 120, par. 7-710)

Sec. 710. Withholding from lottery winnings.

(a) In general.

(1) Any person making a payment to a resident or

nonresident of winnings under the Illinois Lottery Law and

not required to withhold Illinois income tax from such

payment under Subsection (b) of Section 701 of this Act

because those winnings are not subject to Federal income

tax withholding, must withhold Illinois income tax from

such payment at a rate equal to the percentage tax rate for

individuals provided in subsection (b) of Section 201,

provided that withholding is not required if such payment

of winnings is less than $1,000.

(2) In the case of an assignment of a lottery prize

under Section 13.1 of the Illinois Lottery Law, any person

making a payment of the purchase price after December 31,

2013, shall withhold from the amount of each payment at a

rate equal to the percentage tax rate for individuals

provided in subsection (b) of Section 201.

(3) Any person making a payment after December 31, 2019

to a resident or nonresident of winnings from pari-mutuel

wagering conducted at a wagering facility licensed under

the Illinois Horse Racing Act of 1975 or from gambling

games conducted on a riverboat or in a casino or

organization gaming facility licensed under the Illinois

Gambling Act must withhold Illinois income tax from such

payment at a rate equal to the percentage tax rate for

individuals provided in subsection (b) of Section 201,

provided that the person making the payment is required to

withhold under Section 3402(q) of the Internal Revenue

Code.

(b) Credit for taxes withheld. Any amount withheld under

Subsection (a) shall be a credit against the Illinois income

tax liability of the person to whom the payment of winnings was

made for the taxable year in which that person incurred an

Illinois income tax liability with respect to those winnings.

(Source: P.A. 98-496, eff. 1-1-14.)

Section 35-40. The Joliet Regional Port District Act is

amended by changing Section 5.1 as follows:

(70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)

Sec. 5.1. Riverboat and casino gambling. Notwithstanding

any other provision of this Act, the District may not regulate

the operation, conduct, or navigation of any riverboat gambling

casino licensed under the Illinois Riverboat Gambling Act, and

the District may not license, tax, or otherwise levy any

assessment of any kind on any riverboat gambling casino

licensed under the Illinois Riverboat Gambling Act. The General

Assembly declares that the powers to regulate the operation,

conduct, and navigation of riverboat gambling casinos and to

license, tax, and levy assessments upon riverboat gambling

casinos are exclusive powers of the State of Illinois and the

Illinois Gaming Board as provided in the Illinois Riverboat

Gambling Act.

(Source: P.A. 87-1175.)

Section 35-45. The Consumer Installment Loan Act is amended

by changing Section 12.5 as follows:

(205 ILCS 670/12.5)

Sec. 12.5. Limited purpose branch.

(a) Upon the written approval of the Director, a licensee

may maintain a limited purpose branch for the sole purpose of

making loans as permitted by this Act. A limited purpose branch

may include an automatic loan machine. No other activity shall

be conducted at the site, including but not limited to,

accepting payments, servicing the accounts, or collections.

(b) The licensee must submit an application for a limited

purpose branch to the Director on forms prescribed by the

Director with an application fee of $300. The approval for the

limited purpose branch must be renewed concurrently with the

renewal of the licensee's license along with a renewal fee of

$300 for the limited purpose branch.

(c) The books, accounts, records, and files of the limited

purpose branch's transactions shall be maintained at the

licensee's licensed location. The licensee shall notify the

Director of the licensed location at which the books, accounts,

records, and files shall be maintained.

(d) The licensee shall prominently display at the limited

purpose branch the address and telephone number of the

licensee's licensed location.

(e) No other business shall be conducted at the site of the

limited purpose branch unless authorized by the Director.

(f) The Director shall make and enforce reasonable rules

for the conduct of a limited purpose branch.

(g) A limited purpose branch may not be located within

1,000 feet of a facility operated by an inter-track wagering

licensee or an organization licensee subject to the Illinois

Horse Racing Act of 1975, on a riverboat or in a casino subject

to the Illinois Riverboat Gambling Act, or within 1,000 feet of

the location at which the riverboat docks or within 1,000 feet

of a casino.

(Source: P.A. 90-437, eff. 1-1-98.)

Section 35-50. The Illinois Horse Racing Act of 1975 is

amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,

20, 21, 24, 25, 26, 26.8, 26.9, 27, 29, 30, 30.5, 31, 31.1,

32.1, 36, 40, and 54.75 and by adding Sections 3.32, 3.33,

3.34, 3.35, 19.5, 34.3, and 56 as follows:

(230 ILCS 5/1.2)

Sec. 1.2. Legislative intent. This Act is intended to

benefit the people of the State of Illinois by encouraging the

breeding and production of race horses, assisting economic

development and promoting Illinois tourism. The General

Assembly finds and declares it to be the public policy of the

State of Illinois to:

(a) support and enhance Illinois' horse racing industry,

which is a significant component within the agribusiness

industry;

(b) ensure that Illinois' horse racing industry remains

competitive with neighboring states;

(c) stimulate growth within Illinois' horse racing

industry, thereby encouraging new investment and development

to produce additional tax revenues and to create additional

jobs;

(d) promote the further growth of tourism;

(e) encourage the breeding of thoroughbred and

standardbred horses in this State; and

(f) ensure that public confidence and trust in the

credibility and integrity of racing operations and the

regulatory process is maintained.

(Source: P.A. 91-40, eff. 6-25-99.)

(230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)

Sec. 3.11. "Organization Licensee" means any person

receiving an organization license from the Board to conduct a

race meeting or meetings. With respect only to organization

gaming, "organization licensee" includes the authorization for

an organization gaming license under subsection (a) of Section

56 of this Act.

(Source: P.A. 79-1185.)

(230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)

Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel

system of wagering" means a form of wagering on the outcome of

horse races in which wagers are made in various denominations

on a horse or horses and all wagers for each race are pooled

and held by a licensee for distribution in a manner approved by

the Board. "Pari-mutuel system of wagering" shall not include

wagering on historic races. Wagers may be placed via any method

or at any location authorized under this Act.

(Source: P.A. 96-762, eff. 8-25-09.)

(230 ILCS 5/3.32 new)

Sec. 3.32. Gross receipts. "Gross receipts" means the total

amount of money exchanged for the purchase of chips, tokens, or

electronic cards by riverboat or casino patrons or organization

gaming patrons.

(230 ILCS 5/3.33 new)

Sec. 3.33. Adjusted gross receipts. "Adjusted gross

receipts" means the gross receipts less winnings paid to

wagerers.

(230 ILCS 5/3.34 new)

Sec. 3.34. Organization gaming facility. "Organization

gaming facility" means that portion of an organization

licensee's racetrack facilities at which gaming authorized

under Section 7.7 of the Illinois Gambling Act is conducted.

(230 ILCS 5/3.35 new)

Sec. 3.35. Organization gaming license. "Organization

gaming license" means a license issued by the Illinois Gaming

Board under Section 7.7 of the Illinois Gambling Act

authorizing gaming pursuant to that Section at an organization

gaming facility.

(230 ILCS 5/6) (from Ch. 8, par. 37-6)

Sec. 6. Restrictions on Board members.

(a) No person shall be appointed a member of the Board or

continue to be a member of the Board if the person or any

member of their immediate family is a member of the Board of

Directors, employee, or financially interested in any of the

following: (i) any licensee or other person who has applied for

racing dates to the Board, or the operations thereof including,

but not limited to, concessions, data processing, track

maintenance, track security, and pari-mutuel operations,

located, scheduled or doing business within the State of

Illinois, (ii) any race horse competing at a meeting under the

Board's jurisdiction, or (iii) any licensee under the Illinois

Gambling Act. No person shall be appointed a member of the

Board or continue to be a member of the Board who is (or any

member of whose family is) a member of the Board of Directors

of, or who is a person financially interested in, any licensee

or other person who has applied for racing dates to the Board,

or the operations thereof including, but not limited to,

concessions, data processing, track maintenance, track

security and pari-mutuel operations, located, scheduled or

doing business within the State of Illinois, or in any race

horse competing at a meeting under the Board's jurisdiction. No

Board member shall hold any other public office for which he

shall receive compensation other than necessary travel or other

incidental expenses.

(b) No person shall be a member of the Board who is not of

good moral character or who has been convicted of, or is under

indictment for, a felony under the laws of Illinois or any

other state, or the United States.

(c) No member of the Board or employee shall engage in any

political activity.

For the purposes of this subsection (c):

"Political" means any activity in support of or in

connection with any campaign for State or local elective office

or any political organization, but does not include activities

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

legislative, or administrative action (as those terms are

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

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

in furtherance of the person's official State duties or

governmental and public service functions.

"Political organization" means a party, committee,

association, fund, or other organization (whether or not

incorporated) that is required to file a statement of

organization with the State Board of Elections or county clerk

under Section 9-3 of the Election Code, but only with regard to

those activities that require filing with the State Board of

Elections or county clerk.

(d) Board members and employees may not engage in

communications or any activity that may cause or have the

appearance of causing a conflict of interest. A conflict of

interest exists if a situation influences or creates the

appearance that it may influence judgment or performance of

regulatory duties and responsibilities. This prohibition shall

extend to any act identified by Board action that, in the

judgment of the Board, could represent the potential for or the

appearance of a conflict of interest.

(e) Board members and employees may not accept any gift,

gratuity, service, compensation, travel, lodging, or thing of

value, with the exception of unsolicited items of an incidental

nature, from any person, corporation, limited liability

company, or entity doing business with the Board.

(f) A Board member or employee shall not use or attempt to

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

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

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

within a period of one year immediately preceding nomination by

the Governor or employment, shall have been employed or

received compensation or fees for services from a person or

entity, or its parent or affiliate, that has engaged in

business with the Board, a licensee or a licensee under the

Illinois Gambling Act. In addition, all Board members and

employees are subject to the restrictions set forth in Section

5-45 of the State Officials and Employees Ethics Act.

(Source: P.A. 89-16, eff. 5-30-95.)

(230 ILCS 5/9) (from Ch. 8, par. 37-9)

Sec. 9. The Board shall have all powers necessary and

proper to fully and effectively execute the provisions of this

Act, including, but not limited to, the following:

(a) The Board is vested with jurisdiction and supervision

over all race meetings in this State, over all licensees doing

business in this State, over all occupation licensees, and over

all persons on the facilities of any licensee. Such

jurisdiction shall include the power to issue licenses to the

Illinois Department of Agriculture authorizing the pari-mutuel

system of wagering on harness and Quarter Horse races held (1)

at the Illinois State Fair in Sangamon County, and (2) at the

DuQuoin State Fair in Perry County. The jurisdiction of the

Board shall also include the power to issue licenses to county

fairs which are eligible to receive funds pursuant to the

Agricultural Fair Act, as now or hereafter amended, or their

agents, authorizing the pari-mutuel system of wagering on horse

races conducted at the county fairs receiving such licenses.

Such licenses shall be governed by subsection (n) of this

Section.

Upon application, the Board shall issue a license to the

Illinois Department of Agriculture to conduct harness and

Quarter Horse races at the Illinois State Fair and at the

DuQuoin State Fairgrounds during the scheduled dates of each

fair. The Board shall not require and the Department of

Agriculture shall be exempt from the requirements of Sections

15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),

(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24

and 25. The Board and the Department of Agriculture may extend

any or all of these exemptions to any contractor or agent

engaged by the Department of Agriculture to conduct its race

meetings when the Board determines that this would best serve

the public interest and the interest of horse racing.

Notwithstanding any provision of law to the contrary, it

shall be lawful for any licensee to operate pari-mutuel

wagering or contract with the Department of Agriculture to

operate pari-mutuel wagering at the DuQuoin State Fairgrounds

or for the Department to enter into contracts with a licensee,

employ its owners, employees or agents and employ such other

occupation licensees as the Department deems necessary in

connection with race meetings and wagerings.

(b) The Board is vested with the full power to promulgate

reasonable rules and regulations for the purpose of

administering the provisions of this Act and to prescribe

reasonable rules, regulations and conditions under which all

horse race meetings or wagering in the State shall be

conducted. Such reasonable rules and regulations are to provide

for the prevention of practices detrimental to the public

interest and to promote the best interests of horse racing and

to impose penalties for violations thereof.

(c) The Board, and any person or persons to whom it

delegates this power, is vested with the power to enter the

facilities and other places of business of any licensee to

determine whether there has been compliance with the provisions

of this Act and its rules and regulations.

(d) The Board, and any person or persons to whom it

delegates this power, is vested with the authority to

investigate alleged violations of the provisions of this Act,

its reasonable rules and regulations, orders and final

decisions; the Board shall take appropriate disciplinary

action against any licensee or occupation licensee for

violation thereof or institute appropriate legal action for the

enforcement thereof.

(e) The Board, and any person or persons to whom it

delegates this power, may eject or exclude from any race

meeting or the facilities of any licensee, or any part thereof,

any occupation licensee or any other individual whose conduct

or reputation is such that his presence on those facilities

may, in the opinion of the Board, call into question the

honesty and integrity of horse racing or wagering or interfere

with the orderly conduct of horse racing or wagering; provided,

however, that no person shall be excluded or ejected from the

facilities of any licensee solely on the grounds of race,

color, creed, national origin, ancestry, or sex. The power to

eject or exclude an occupation licensee or other individual may

be exercised for just cause by the licensee or the Board,

subject to subsequent hearing by the Board as to the propriety

of said exclusion.

(f) The Board is vested with the power to acquire,

establish, maintain and operate (or provide by contract to

maintain and operate) testing laboratories and related

facilities, for the purpose of conducting saliva, blood, urine

and other tests on the horses run or to be run in any horse race

meeting, including races run at county fairs, and to purchase

all equipment and supplies deemed necessary or desirable in

connection with any such testing laboratories and related

facilities and all such tests.

(g) The Board may require that the records, including

financial or other statements of any licensee or any person

affiliated with the licensee who is involved directly or

indirectly in the activities of any licensee as regulated under

this Act to the extent that those financial or other statements

relate to such activities be kept in such manner as prescribed

by the Board, and that Board employees shall have access to

those records during reasonable business hours. Within 120 days

of the end of its fiscal year, each licensee shall transmit to

the Board an audit of the financial transactions and condition

of the licensee's total operations. All audits shall be

conducted by certified public accountants. Each certified

public accountant must be registered in the State of Illinois

under the Illinois Public Accounting Act. The compensation for

each certified public accountant shall be paid directly by the

licensee to the certified public accountant. A licensee shall

also submit any other financial or related information the

Board deems necessary to effectively administer this Act and

all rules, regulations, and final decisions promulgated under

this Act.

(h) The Board shall name and appoint in the manner provided

by the rules and regulations of the Board: an Executive

Director; a State director of mutuels; State veterinarians and

representatives to take saliva, blood, urine and other tests on

horses; licensing personnel; revenue inspectors; and State

seasonal employees (excluding admission ticket sellers and

mutuel clerks). All of those named and appointed as provided in

this subsection shall serve during the pleasure of the Board;

their compensation shall be determined by the Board and be paid

in the same manner as other employees of the Board under this

Act.

(i) The Board shall require that there shall be 3 stewards

at each horse race meeting, at least 2 of whom shall be named

and appointed by the Board. Stewards appointed or approved by

the Board, while performing duties required by this Act or by

the Board, shall be entitled to the same rights and immunities

as granted to Board members and Board employees in Section 10

of this Act.

(j) The Board may discharge any Board employee who fails or

refuses for any reason to comply with the rules and regulations

of the Board, or who, in the opinion of the Board, is guilty of

fraud, dishonesty or who is proven to be incompetent. The Board

shall have no right or power to determine who shall be

officers, directors or employees of any licensee, or their

salaries except the Board may, by rule, require that all or any

officials or employees in charge of or whose duties relate to

the actual running of races be approved by the Board.

(k) The Board is vested with the power to appoint delegates

to execute any of the powers granted to it under this Section

for the purpose of administering this Act and any rules or

regulations promulgated in accordance with this Act.

(l) The Board is vested with the power to impose civil

penalties of up to $5,000 against an individual and up to

$10,000 against a licensee for each violation of any provision

of this Act, any rules adopted by the Board, any order of the

Board or any other action which, in the Board's discretion, is

a detriment or impediment to horse racing or wagering.

Beginning on the date when any organization licensee begins

conducting gaming pursuant to an organization gaming license

issued under the Illinois Gambling Act, the power granted to

the Board pursuant to this subsection (l) shall authorize the

Board to impose penalties of up to $10,000 against an

individual and up to $25,000 against a licensee. All such civil

penalties shall be deposited into the Horse Racing Fund.

(m) The Board is vested with the power to prescribe a form

to be used by licensees as an application for employment for

employees of each licensee.

(n) The Board shall have the power to issue a license to

any county fair, or its agent, authorizing the conduct of the

pari-mutuel system of wagering. The Board is vested with the

full power to promulgate reasonable rules, regulations and

conditions under which all horse race meetings licensed

pursuant to this subsection shall be held and conducted,

including rules, regulations and conditions for the conduct of

the pari-mutuel system of wagering. The rules, regulations and

conditions shall provide for the prevention of practices

detrimental to the public interest and for the best interests

of horse racing, and shall prescribe penalties for violations

thereof. Any authority granted the Board under this Act shall

extend to its jurisdiction and supervision over county fairs,

or their agents, licensed pursuant to this subsection. However,

the Board may waive any provision of this Act or its rules or

regulations which would otherwise apply to such county fairs or

their agents.

(o) Whenever the Board is authorized or required by law to

consider some aspect of criminal history record information for

the purpose of carrying out its statutory powers and

responsibilities, then, upon request and payment of fees in

conformance with the requirements of Section 2605-400 of the

Department of State Police Law (20 ILCS 2605/2605-400), the

Department of State Police is authorized to furnish, pursuant

to positive identification, such information contained in

State files as is necessary to fulfill the request.

(p) To insure the convenience, comfort, and wagering

accessibility of race track patrons, to provide for the

maximization of State revenue, and to generate increases in

purse allotments to the horsemen, the Board shall require any

licensee to staff the pari-mutuel department with adequate

personnel.

(Source: P.A. 97-1060, eff. 8-24-12.)

(230 ILCS 5/15) (from Ch. 8, par. 37-15)

Sec. 15. (a) The Board shall, in its discretion, issue

occupation licenses to horse owners, trainers, harness

drivers, jockeys, agents, apprentices, grooms, stable foremen,

exercise persons, veterinarians, valets, blacksmiths,

concessionaires and others designated by the Board whose work,

in whole or in part, is conducted upon facilities within the

State. Such occupation licenses will be obtained prior to the

persons engaging in their vocation upon such facilities. The

Board shall not license pari-mutuel clerks, parking

attendants, security guards and employees of concessionaires.

No occupation license shall be required of any person who works

at facilities within this State as a pari-mutuel clerk, parking

attendant, security guard or as an employee of a

concessionaire. Concessionaires of the Illinois State Fair and

DuQuoin State Fair and employees of the Illinois Department of

Agriculture shall not be required to obtain an occupation

license by the Board.

(b) Each application for an occupation license shall be on

forms prescribed by the Board. Such license, when issued, shall

be for the period ending December 31 of each year, except that

the Board in its discretion may grant 3-year licenses. The

application shall be accompanied by a fee of not more than $25

per year or, in the case of 3-year occupation license

applications, a fee of not more than $60. Each applicant shall

set forth in the application his full name and address, and if

he had been issued prior occupation licenses or has been

licensed in any other state under any other name, such name,

his age, whether or not a permit or license issued to him in

any other state has been suspended or revoked and if so whether

such suspension or revocation is in effect at the time of the

application, and such other information as the Board may

require. Fees for registration of stable names shall not exceed

$50.00. Beginning on the date when any organization licensee

begins conducting gaming pursuant to an organization gaming

license issued under the Illinois Gambling Act, the fee for

registration of stable names shall not exceed $150, and the

application fee for an occupation license shall not exceed $75,

per year or, in the case of a 3-year occupation license

application, the fee shall not exceed $180.

(c) The Board may in its discretion refuse an occupation

license to any person:

(1) who has been convicted of a crime;

(2) who is unqualified to perform the duties required

of such applicant;

(3) who fails to disclose or states falsely any

information called for in the application;

(4) who has been found guilty of a violation of this

Act or of the rules and regulations of the Board; or

(5) whose license or permit has been suspended, revoked

or denied for just cause in any other state.

(d) The Board may suspend or revoke any occupation license:

(1) for violation of any of the provisions of this Act;

or

(2) for violation of any of the rules or regulations of

the Board; or

(3) for any cause which, if known to the Board, would

have justified the Board in refusing to issue such

occupation license; or

(4) for any other just cause.

(e) Each applicant shall submit his or her fingerprints

to the Department of State Police in the form and manner

prescribed by the Department of State Police. These

fingerprints shall be checked against the fingerprint records

now and hereafter filed in the Department of State Police and

Federal Bureau of Investigation criminal history records

databases. The Department of State Police shall charge a fee

for conducting the criminal history records check, which shall

be deposited in the State Police Services Fund and shall not

exceed the actual cost of the records check. The Department of

State Police shall furnish, pursuant to positive

identification, records of conviction to the Board. Each

applicant for licensure shall submit with his occupation

license application, on forms provided by the Board, 2 sets of

his fingerprints. All such applicants shall appear in person at

the location designated by the Board for the purpose of

submitting such sets of fingerprints; however, with the prior

approval of a State steward, an applicant may have such sets of

fingerprints taken by an official law enforcement agency and

submitted to the Board.

(f) The Board may, in its discretion, issue an occupation

license without submission of fingerprints if an applicant has

been duly licensed in another recognized racing jurisdiction

after submitting fingerprints that were subjected to a Federal

Bureau of Investigation criminal history background check in

that jurisdiction.

(g) Beginning on the date when any organization licensee

begins conducting gaming pursuant to an organization gaming

license issued under the Illinois Gambling Act, the Board may

charge each applicant a reasonable nonrefundable fee to defray

the costs associated with the background investigation

conducted by the Board. This fee shall be exclusive of any

other fee or fees charged in connection with an application for

and, if applicable, the issuance of, an organization gaming

license. If the costs of the investigation exceed the amount of

the fee charged, the Board shall immediately notify the

applicant of the additional amount owed, payment of which must

be submitted to the Board within 7 days after such

notification. All information, records, interviews, reports,

statements, memoranda, or other data supplied to or used by the

Board in the course of its review or investigation of an

applicant for a license or renewal under this Act shall be

privileged, strictly confidential, and shall be used only for

the purpose of evaluating an applicant for a license or a

renewal. Such information, records, interviews, reports,

statements, memoranda, or other data shall not be admissible as

evidence, nor discoverable, in any action of any kind in any

court or before any tribunal, board, agency, or person, except

for any action deemed necessary by the Board.

(Source: P.A. 93-418, eff. 1-1-04.)

(230 ILCS 5/18) (from Ch. 8, par. 37-18)

Sec. 18. (a) Together with its application, each applicant

for racing dates shall deliver to the Board a certified check

or bank draft payable to the order of the Board for $1,000. In

the event the applicant applies for racing dates in 2 or 3

successive calendar years as provided in subsection (b) of

Section 21, the fee shall be $2,000. Filing fees shall not be

refunded in the event the application is denied. Beginning on

the date when any organization licensee begins conducting

gaming pursuant to an organization gaming license issued under

the Illinois Gambling Act, the application fee for racing dates

imposed by this subsection (a) shall be $10,000 and the

application fee for racing dates in 2 or 3 successive calendar

years as provided in subsection (b) of Section 21 shall be

$20,000. All filing fees shall be deposited into the Horse

Racing Fund.

(b) In addition to the filing fee imposed by subsection (a)

of $1000 and the fees provided in subsection (j) of Section 20,

each organization licensee shall pay a license fee of $100 for

each racing program on which its daily pari-mutuel handle is

$400,000 or more but less than $700,000, and a license fee of

$200 for each racing program on which its daily pari-mutuel

handle is $700,000 or more. The additional fees required to be

paid under this Section by this amendatory Act of 1982 shall be

remitted by the organization licensee to the Illinois Racing

Board with each day's graduated privilege tax or pari-mutuel

tax and breakage as provided under Section 27. Beginning on the

date when any organization licensee begins conducting gaming

pursuant to an organization gaming license issued under the

Illinois Gambling Act, the license fee imposed by this

subsection (b) shall be $200 for each racing program on which

the organization licensee's daily pari-mutuel handle is

$100,000 or more, but less than $400,000, and the license fee

imposed by this subsection (b) shall be $400 for each racing

program on which the organization licensee's daily pari-mutuel

handle is $400,000 or more.

(c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois

Municipal Code," approved May 29, 1961, as now or hereafter

amended, shall not apply to any license under this Act.

(Source: P.A. 97-1060, eff. 8-24-12.)

(230 ILCS 5/19) (from Ch. 8, par. 37-19)

Sec. 19. (a) No organization license may be granted to

conduct a horse race meeting:

(1) except as provided in subsection (c) of Section 21

of this Act, to any person at any place within 35 miles of

any other place licensed by the Board to hold a race

meeting on the same date during the same hours, the mileage

measurement used in this subsection (a) shall be certified

to the Board by the Bureau of Systems and Services in the

Illinois Department of Transportation as the most commonly

used public way of vehicular travel;

(2) to any person in default in the payment of any

obligation or debt due the State under this Act, provided

no applicant shall be deemed in default in the payment of

any obligation or debt due to the State under this Act as

long as there is pending a hearing of any kind relevant to

such matter;

(3) to any person who has been convicted of the

violation of any law of the United States or any State law

which provided as all or part of its penalty imprisonment

in any penal institution; to any person against whom there

is pending a Federal or State criminal charge; to any

person who is or has been connected with or engaged in the

operation of any illegal business; to any person who does

not enjoy a general reputation in his community of being an

honest, upright, law-abiding person; provided that none of

the matters set forth in this subparagraph (3) shall make

any person ineligible to be granted an organization license

if the Board determines, based on circumstances of any such

case, that the granting of a license would not be

detrimental to the interests of horse racing and of the

public;

(4) to any person who does not at the time of

application for the organization license own or have a

contract or lease for the possession of a finished race

track suitable for the type of racing intended to be held

by the applicant and for the accommodation of the public.

(b) (Blank) Horse racing on Sunday shall be prohibited

unless authorized by ordinance or referendum of the

municipality in which a race track or any of its appurtenances

or facilities are located, or utilized.

(c) If any person is ineligible to receive an organization

license because of any of the matters set forth in subsection

(a) (2) or subsection (a) (3) of this Section, any other or

separate person that either (i) controls, directly or

indirectly, such ineligible person or (ii) is controlled,

directly or indirectly, by such ineligible person or by a

person which controls, directly or indirectly, such ineligible

person shall also be ineligible.

(Source: P.A. 88-495; 89-16, eff. 5-30-95.)

(230 ILCS 5/19.5 new)

Sec. 19.5. Standardbred racetrack in Cook County.

Notwithstanding anything in this Act to the contrary, in

addition to organization licenses issued by the Board on the

effective date of this amendatory Act of the 101st General

Assembly, the Board shall issue an organization license limited

to standardbred racing to a racetrack located in one of the

following townships of Cook County: Bloom, Bremen, Calumet,

Orland, Rich, Thornton, or Worth. This additional organization

license shall not be issued within a 35-mile radius of another

organization license issued by the Board on the effective date

of this amendatory Act of the 101st General Assembly, unless

the person having operating control of such racetrack has given

written consent to the organization licensee applicant, which

consent must be filed with the Board at or prior to the time

application is made. The organization license shall be granted

upon application, and the licensee shall have all of the

current and future rights of existing Illinois racetracks,

including, but not limited to, the ability to obtain an

inter-track wagering license, the ability to obtain

inter-track wagering location licenses, the ability to obtain

an organization gaming license pursuant to the Illinois

Gambling Act with 1,200 gaming positions, and the ability to

offer Internet wagering on horse racing.

(230 ILCS 5/20) (from Ch. 8, par. 37-20)

Sec. 20. (a) Any person desiring to conduct a horse race

meeting may apply to the Board for an organization license. The

application shall be made on a form prescribed and furnished by

the Board. The application shall specify:

(1) the dates on which it intends to conduct the horse

race meeting, which dates shall be provided under Section

21;

(2) the hours of each racing day between which it

intends to hold or conduct horse racing at such meeting;

(3) the location where it proposes to conduct the

meeting; and

(4) any other information the Board may reasonably

require.

(b) A separate application for an organization license

shall be filed for each horse race meeting which such person

proposes to hold. Any such application, if made by an

individual, or by any individual as trustee, shall be signed

and verified under oath by such individual. If the application

is made by individuals, then it shall be signed and verified

under oath by at least 2 of the individuals; if the application

is made by or a partnership, it shall be signed and verified

under oath by at least 2 of such individuals or members of such

partnership as the case may be. If made by an association, a

corporation, a corporate trustee, a limited liability company,

or any other entity, it shall be signed by an authorized

officer, a partner, a member, or a manager, as the case may be,

of the entity the president and attested by the secretary or

assistant secretary under the seal of such association, trust

or corporation if it has a seal, and shall also be verified

under oath by one of the signing officers.

(c) The application shall specify:

(1) the name of the persons, association, trust, or

corporation making such application; and

(2) the principal post office address of the applicant;

(3) if the applicant is a trustee, the names and

addresses of the beneficiaries; if the applicant is a

corporation, the names and post office addresses of all

officers, stockholders and directors; or if such

stockholders hold stock as a nominee or fiduciary, the

names and post office addresses of the parties these

persons, partnerships, corporations, or trusts who are the

beneficial owners thereof or who are beneficially

interested therein; and if the applicant is a partnership,

the names and post office addresses of all partners,

general or limited; if the applicant is a limited liability

company, the names and addresses of the manager and

members; and if the applicant is any other entity, the

names and addresses of all officers or other authorized

persons of the entity corporation, the name of the state of

its incorporation shall be specified.

(d) The applicant shall execute and file with the Board a

good faith affirmative action plan to recruit, train, and

upgrade minorities in all classifications within the

association.

(e) With such application there shall be delivered to the

Board a certified check or bank draft payable to the order of

the Board for an amount equal to $1,000. All applications for

the issuance of an organization license shall be filed with the

Board before August 1 of the year prior to the year for which

application is made and shall be acted upon by the Board at a

meeting to be held on such date as shall be fixed by the Board

during the last 15 days of September of such prior year. At

such meeting, the Board shall announce the award of the racing

meets, live racing schedule, and designation of host track to

the applicants and its approval or disapproval of each

application. No announcement shall be considered binding until

a formal order is executed by the Board, which shall be

executed no later than October 15 of that prior year. Absent

the agreement of the affected organization licensees, the Board

shall not grant overlapping race meetings to 2 or more tracks

that are within 100 miles of each other to conduct the

thoroughbred racing.

(e-1) The Board shall award standardbred racing dates to

organization licensees with an organization gaming license

pursuant to the following schedule:

(1) For the first calendar year of operation of

gambling games by an organization gaming licensee under

this amendatory Act of the 101st General Assembly, when a

single entity requests standardbred racing dates, the

Board shall award no fewer than 100 days of racing. The

100-day requirement may be reduced to no fewer than 80 days

if no dates are requested for the first 3 months of a

calendar year. If more than one entity requests

standardbred racing dates, the Board shall award no fewer

than 140 days of racing between the applicants.

(2) For the second calendar year of operation of

gambling games by an organization gaming licensee under

this amendatory Act of the 101st General Assembly, when a

single entity requests standardbred racing dates, the

Board shall award no fewer than 100 days of racing. The

100-day requirement may be reduced to no fewer than 80 days

if no dates are requested for the first 3 months of a

calendar year. If more than one entity requests

standardbred racing dates, the Board shall award no fewer

than 160 days of racing between the applicants.

(3) For the third calendar year of operation of

gambling games by an organization gaming licensee under

this amendatory Act of the 101st General Assembly, and each

calendar year thereafter, when a single entity requests

standardbred racing dates, the Board shall award no fewer

than 120 days of racing. The 120-day requirement may be

reduced to no fewer than 100 days if no dates are requested

for the first 3 months of a calendar year. If more than one

entity requests standardbred racing dates, the Board shall

award no fewer than 200 days of racing between the

applicants.

An organization licensee shall apply for racing dates

pursuant to this subsection (e-1). In awarding racing dates

under this subsection (e-1), the Board shall have the

discretion to allocate those standardbred racing dates among

these organization licensees.

(e-2) The Board shall award thoroughbred racing days to

Cook County organization licensees pursuant to the following

schedule:

(1) During the first year in which only one

organization licensee is awarded an organization gaming

license, the Board shall award no fewer than 110 days of

racing.

During the second year in which only one organization

licensee is awarded an organization gaming license, the

Board shall award no fewer than 115 racing days.

During the third year and every year thereafter, in

which only one organization licensee is awarded an

organization gaming license, the Board shall award no fewer

than 120 racing days.

(2) During the first year in which 2 organization

licensees are awarded an organization gaming license, the

Board shall award no fewer than 139 total racing days.

During the second year in which 2 organization

licensees are awarded an organization gaming license, the

Board shall award no fewer than 160 total racing days.

During the third year and every year thereafter in

which 2 organization licensees are awarded an organization

gaming license, the Board shall award no fewer than 174

total racing days.

A Cook County organization licensee shall apply for racing

dates pursuant to this subsection (e-2). In awarding racing

dates under this subsection (e-2), the Board shall have the

discretion to allocate those thoroughbred racing dates among

these Cook County organization licensees.

(e-3) In awarding racing dates for calendar year 2020 and

thereafter in connection with a racetrack in Madison County,

the Board shall award racing dates and such organization

licensee shall run at least 700 thoroughbred races at the

racetrack in Madison County each year.

Notwithstanding Section 7.7 of the Illinois Gambling Act or

any provision of this Act other than subsection (e-4.5), for

each calendar year for which an organization gaming licensee

located in Madison County requests racing dates resulting in

less than 700 live thoroughbred races at its racetrack

facility, the organization gaming licensee may not conduct

gaming pursuant to an organization gaming license issued under

the Illinois Gambling Act for the calendar year of such

requested live races.

(e-4) Notwithstanding the provisions of Section 7.7 of the

Illinois Gambling Act or any provision of this Act other than

subsections (e-3) and (e-4.5), for each calendar year for which

an organization gaming licensee requests thoroughbred racing

dates which results in a number of live races under its

organization license that is less than the total number of live

races which it conducted in 2017 at its racetrack facility, the

organization gaming licensee may not conduct gaming pursuant to

its organization gaming license for the calendar year of such

requested live races.

(e-4.1) Notwithstanding the provisions of Section 7.7 of

the Illinois Gambling Act or any provision of this Act other

than subsections (e-3) and (e-4.5), for each calendar year for

which an organization licensee requests racing dates for

standardbred racing which results in a number of live races

that is less than the total number of live races required in

subsection (e-1), the organization gaming licensee may not

conduct gaming pursuant to its organization gaming license for

the calendar year of such requested live races.

(e-4.5) The Board shall award the minimum live racing

guarantees contained in subsections (e-1), (e-2), and (e-3) to

ensure that each organization licensee shall individually run a

sufficient number of races per year to qualify for an

organization gaming license under this Act. The General

Assembly finds that the minimum live racing guarantees

contained in subsections (e-1), (e-2), and (e-3) are in the

best interest of the sport of horse racing, and that such

guarantees may only be reduced in the calendar year in which

they will be conducted in the limited circumstances described

in this subsection. The Board may decrease the number of racing

days without affecting an organization licensee's ability to

conduct gaming pursuant to an organization gaming license

issued under the Illinois Gambling Act only if the Board

determines, after notice and hearing, that:

(i) a decrease is necessary to maintain a sufficient

number of betting interests per race to ensure the

integrity of racing;

(ii) there are unsafe track conditions due to weather

or acts of God;

(iii) there is an agreement between an organization

licensee and the breed association that is applicable to

the involved live racing guarantee, such association

representing either the largest number of thoroughbred

owners and trainers or the largest number of standardbred

owners, trainers and drivers who race horses at the

involved organization licensee's racing meeting, so long

as the agreement does not compromise the integrity of the

sport of horse racing; or

(iv) the horse population or purse levels are

insufficient to provide the number of racing opportunities

otherwise required in this Act.

In decreasing the number of racing dates in accordance with

this subsection, the Board shall hold a hearing and shall

provide the public and all interested parties notice and an

opportunity to be heard. The Board shall accept testimony from

all interested parties, including any association representing

owners, trainers, jockeys, or drivers who will be affected by

the decrease in racing dates. The Board shall provide a written

explanation of the reasons for the decrease and the Board's

findings. The written explanation shall include a listing and

content of all communication between any party and any Illinois

Racing Board member or staff that does not take place at a

public meeting of the Board.

(e-5) In reviewing an application for the purpose of

granting an organization license consistent with the best

interests of the public and the sport of horse racing, the

Board shall consider:

(1) the character, reputation, experience, and

financial integrity of the applicant and of any other

separate person that either:

(i) controls the applicant, directly or

indirectly, or

(ii) is controlled, directly or indirectly, by

that applicant or by a person who controls, directly or

indirectly, that applicant;

(2) the applicant's facilities or proposed facilities

for conducting horse racing;

(3) the total revenue without regard to Section 32.1 to

be derived by the State and horsemen from the applicant's

conducting a race meeting;

(4) the applicant's good faith affirmative action plan

to recruit, train, and upgrade minorities in all employment

classifications;

(5) the applicant's financial ability to purchase and

maintain adequate liability and casualty insurance;

(6) the applicant's proposed and prior year's

promotional and marketing activities and expenditures of

the applicant associated with those activities;

(7) an agreement, if any, among organization licensees

as provided in subsection (b) of Section 21 of this Act;

and

(8) the extent to which the applicant exceeds or meets

other standards for the issuance of an organization license

that the Board shall adopt by rule.

In granting organization licenses and allocating dates for

horse race meetings, the Board shall have discretion to

determine an overall schedule, including required simulcasts

of Illinois races by host tracks that will, in its judgment, be

conducive to the best interests of the public and the sport of

horse racing.

(e-10) The Illinois Administrative Procedure Act shall

apply to administrative procedures of the Board under this Act

for the granting of an organization license, except that (1)

notwithstanding the provisions of subsection (b) of Section

10-40 of the Illinois Administrative Procedure Act regarding

cross-examination, the Board may prescribe rules limiting the

right of an applicant or participant in any proceeding to award

an organization license to conduct cross-examination of

witnesses at that proceeding where that cross-examination

would unduly obstruct the timely award of an organization

license under subsection (e) of Section 20 of this Act; (2) the

provisions of Section 10-45 of the Illinois Administrative

Procedure Act regarding proposals for decision are excluded

under this Act; (3) notwithstanding the provisions of

subsection (a) of Section 10-60 of the Illinois Administrative

Procedure Act regarding ex parte communications, the Board may

prescribe rules allowing ex parte communications with

applicants or participants in a proceeding to award an

organization license where conducting those communications

would be in the best interest of racing, provided all those

communications are made part of the record of that proceeding

pursuant to subsection (c) of Section 10-60 of the Illinois

Administrative Procedure Act; (4) the provisions of Section 14a

of this Act and the rules of the Board promulgated under that

Section shall apply instead of the provisions of Article 10 of

the Illinois Administrative Procedure Act regarding

administrative law judges; and (5) the provisions of subsection

(d) of Section 10-65 of the Illinois Administrative Procedure

Act that prevent summary suspension of a license pending

revocation or other action shall not apply.

(f) The Board may allot racing dates to an organization

licensee for more than one calendar year but for no more than 3

successive calendar years in advance, provided that the Board

shall review such allotment for more than one calendar year

prior to each year for which such allotment has been made. The

granting of an organization license to a person constitutes a

privilege to conduct a horse race meeting under the provisions

of this Act, and no person granted an organization license

shall be deemed to have a vested interest, property right, or

future expectation to receive an organization license in any

subsequent year as a result of the granting of an organization

license. Organization licenses shall be subject to revocation

if the organization licensee has violated any provision of this

Act or the rules and regulations promulgated under this Act or

has been convicted of a crime or has failed to disclose or has

stated falsely any information called for in the application

for an organization license. Any organization license

revocation proceeding shall be in accordance with Section 16

regarding suspension and revocation of occupation licenses.

(f-5) If, (i) an applicant does not file an acceptance of

the racing dates awarded by the Board as required under part

(1) of subsection (h) of this Section 20, or (ii) an

organization licensee has its license suspended or revoked

under this Act, the Board, upon conducting an emergency hearing

as provided for in this Act, may reaward on an emergency basis

pursuant to rules established by the Board, racing dates not

accepted or the racing dates associated with any suspension or

revocation period to one or more organization licensees, new

applicants, or any combination thereof, upon terms and

conditions that the Board determines are in the best interest

of racing, provided, the organization licensees or new

applicants receiving the awarded racing dates file an

acceptance of those reawarded racing dates as required under

paragraph (1) of subsection (h) of this Section 20 and comply

with the other provisions of this Act. The Illinois

Administrative Procedure Act shall not apply to the

administrative procedures of the Board in conducting the

emergency hearing and the reallocation of racing dates on an

emergency basis.

(g) (Blank).

(h) The Board shall send the applicant a copy of its

formally executed order by certified mail addressed to the

applicant at the address stated in his application, which

notice shall be mailed within 5 days of the date the formal

order is executed.

Each applicant notified shall, within 10 days after receipt

of the final executed order of the Board awarding racing dates:

(1) file with the Board an acceptance of such award in

the form prescribed by the Board;

(2) pay to the Board an additional amount equal to $110

for each racing date awarded; and

(3) file with the Board the bonds required in Sections

21 and 25 at least 20 days prior to the first day of each

race meeting.

Upon compliance with the provisions of paragraphs (1), (2), and

(3) of this subsection (h), the applicant shall be issued an

organization license.

If any applicant fails to comply with this Section or fails

to pay the organization license fees herein provided, no

organization license shall be issued to such applicant.

(Source: P.A. 97-333, eff. 8-12-11.)

(230 ILCS 5/21) (from Ch. 8, par. 37-21)

Sec. 21. (a) Applications for organization licenses must be

filed with the Board at a time and place prescribed by the

rules and regulations of the Board. The Board shall examine the

applications within 21 days after the date allowed for filing

with respect to their conformity with this Act and such rules

and regulations as may be prescribed by the Board. If any

application does not comply with this Act or the rules and

regulations prescribed by the Board, such application may be

rejected and an organization license refused to the applicant,

or the Board may, within 21 days of the receipt of such

application, advise the applicant of the deficiencies of the

application under the Act or the rules and regulations of the

Board, and require the submittal of an amended application

within a reasonable time determined by the Board; and upon

submittal of the amended application by the applicant, the

Board may consider the application consistent with the process

described in subsection (e-5) of Section 20 of this Act. If it

is found to be in compliance with this Act and the rules and

regulations of the Board, the Board may then issue an

organization license to such applicant.

(b) The Board may exercise discretion in granting racing

dates to qualified applicants different from those requested by

the applicants in their applications. However, if all eligible

applicants for organization licenses whose tracks are located

within 100 miles of each other execute and submit to the Board

a written agreement among such applicants as to the award of

racing dates, including where applicable racing programs, for

up to 3 consecutive years, then subject to annual review of

each applicant's compliance with Board rules and regulations,

provisions of this Act and conditions contained in annual dates

orders issued by the Board, the Board may grant such dates and

programs to such applicants as so agreed by them if the Board

determines that the grant of these racing dates is in the best

interests of racing. The Board shall treat any such agreement

as the agreement signatories' joint and several application for

racing dates during the term of the agreement.

(c) Where 2 or more applicants propose to conduct horse

race meetings within 35 miles of each other, as certified to

the Board under Section 19 (a) (1) of this Act, on conflicting

dates, the Board may determine and grant the number of racing

days to be awarded to the several applicants in accordance with

the provisions of subsection (e-5) of Section 20 of this Act.

(d) (Blank).

(e) Prior to the issuance of an organization license, the

applicant shall file with the Board a bond payable to the State

of Illinois in the sum of $200,000, executed by the applicant

and a surety company or companies authorized to do business in

this State, and conditioned upon the payment by the

organization licensee of all taxes due under Section 27, other

monies due and payable under this Act, all purses due and

payable, and that the organization licensee will upon

presentation of the winning ticket or tickets distribute all

sums due to the patrons of pari-mutuel pools. Beginning on the

date when any organization licensee begins conducting gaming

pursuant to an organization gaming license issued under the

Illinois Gambling Act, the amount of the bond required under

this subsection (e) shall be $500,000.

(f) Each organization license shall specify the person to

whom it is issued, the dates upon which horse racing is

permitted, and the location, place, track, or enclosure where

the horse race meeting is to be held.

(g) Any person who owns one or more race tracks within the

State may seek, in its own name, a separate organization

license for each race track.

(h) All racing conducted under such organization license is

subject to this Act and to the rules and regulations from time

to time prescribed by the Board, and every such organization

license issued by the Board shall contain a recital to that

effect.

(i) Each such organization licensee may provide that at

least one race per day may be devoted to the racing of quarter

horses, appaloosas, arabians, or paints.

(j) In acting on applications for organization licenses,

the Board shall give weight to an organization license which

has implemented a good faith affirmative action effort to

recruit, train and upgrade minorities in all classifications

within the organization license.

(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)

(230 ILCS 5/24) (from Ch. 8, par. 37-24)

Sec. 24. (a) No license shall be issued to or held by an

organization licensee unless all of its officers, directors,

and holders of ownership interests of at least 5% are first

approved by the Board. The Board shall not give approval of an

organization license application to any person who has been

convicted of or is under an indictment for a crime of moral

turpitude or has violated any provision of the racing law of

this State or any rules of the Board.

(b) An organization licensee must notify the Board within

10 days of any change in the holders of a direct or indirect

interest in the ownership of the organization licensee. The

Board may, after hearing, revoke the organization license of

any person who registers on its books or knowingly permits a

direct or indirect interest in the ownership of that person

without notifying the Board of the name of the holder in

interest within this period.

(c) In addition to the provisions of subsection (a) of this

Section, no person shall be granted an organization license if

any public official of the State or member of his or her family

holds any ownership or financial interest, directly or

indirectly, in the person.

(d) No person which has been granted an organization

license to hold a race meeting shall give to any public

official or member of his family, directly or indirectly, for

or without consideration, any interest in the person. The Board

shall, after hearing, revoke the organization license granted

to a person which has violated this subsection.

(e) (Blank).

(f) No organization licensee or concessionaire or officer,

director or holder or controller of 5% or more legal or

beneficial interest in any organization licensee or concession

shall make any sort of gift or contribution that is prohibited

under Article 10 of the State Officials and Employees Ethics

Act of any kind or pay or give any money or other thing of value

to any person who is a public official, or a candidate or

nominee for public office if that payment or gift is prohibited

under Article 10 of the State Officials and Employees Ethics

Act.

(Source: P.A. 89-16, eff. 5-30-95.)

(230 ILCS 5/25) (from Ch. 8, par. 37-25)

Sec. 25. Admission charge; bond; fine.

(a) There shall be paid to the Board at such time or times

as it shall prescribe, the sum of fifteen cents (15¢) for each

person entering the grounds or enclosure of each organization

licensee and inter-track wagering licensee upon a ticket of

admission except as provided in subsection (g) of Section 27 of

this Act. If tickets are issued for more than one day then the

sum of fifteen cents (15¢) shall be paid for each person using

such ticket on each day that the same shall be used. Provided,

however, that no charge shall be made on tickets of admission

issued to and in the name of directors, officers, agents or

employees of the organization licensee, or inter-track

wagering licensee, or to owners, trainers, jockeys, drivers and

their employees or to any person or persons entering the

grounds or enclosure for the transaction of business in

connection with such race meeting. The organization licensee or

inter-track wagering licensee may, if it desires, collect such

amount from each ticket holder in addition to the amount or

amounts charged for such ticket of admission. Beginning on the

date when any organization licensee begins conducting gaming

pursuant to an organization gaming license issued under the

Illinois Gambling Act, the admission charge imposed by this

subsection (a) shall be 40 cents for each person entering the

grounds or enclosure of each organization licensee and

inter-track wagering licensee upon a ticket of admission, and

if such tickets are issued for more than one day, 40 cents

shall be paid for each person using such ticket on each day

that the same shall be used.

(b) Accurate records and books shall at all times be kept

and maintained by the organization licensees and inter-track

wagering licensees showing the admission tickets issued and

used on each racing day and the attendance thereat of each

horse racing meeting. The Board or its duly authorized

representative or representatives shall at all reasonable

times have access to the admission records of any organization

licensee and inter-track wagering licensee for the purpose of

examining and checking the same and ascertaining whether or not

the proper amount has been or is being paid the State of

Illinois as herein provided. The Board shall also require,

before issuing any license, that the licensee shall execute and

deliver to it a bond, payable to the State of Illinois, in such

sum as it shall determine, not, however, in excess of fifty

thousand dollars ($50,000), with a surety or sureties to be

approved by it, conditioned for the payment of all sums due and

payable or collected by it under this Section upon admission

fees received for any particular racing meetings. The Board may

also from time to time require sworn statements of the number

or numbers of such admissions and may prescribe blanks upon

which such reports shall be made. Any organization licensee or

inter-track wagering licensee failing or refusing to pay the

amount found to be due as herein provided, shall be deemed

guilty of a business offense and upon conviction shall be

punished by a fine of not more than five thousand dollars

($5,000) in addition to the amount due from such organization

licensee or inter-track wagering licensee as herein provided.

All fines paid into court by an organization licensee or

inter-track wagering licensee found guilty of violating this

Section shall be transmitted and paid over by the clerk of the

court to the Board. Beginning on the date when any organization

licensee begins conducting gaming pursuant to an organization

gaming license issued under the Illinois Gambling Act, any fine

imposed pursuant to this subsection (b) shall not exceed

$10,000.

(Source: P.A. 88-495; 89-16, eff. 5-30-95.)

(230 ILCS 5/26) (from Ch. 8, par. 37-26)

Sec. 26. Wagering.

(a) Any licensee may conduct and supervise the pari-mutuel

system of wagering, as defined in Section 3.12 of this Act, on

horse races conducted by an Illinois organization licensee or

conducted at a racetrack located in another state or country

and televised in Illinois in accordance with subsection (g) of

Section 26 of this Act. Subject to the prior consent of the

Board, licensees may supplement any pari-mutuel pool in order

to guarantee a minimum distribution. Such pari-mutuel method of

wagering shall not, under any circumstances if conducted under

the provisions of this Act, be held or construed to be

unlawful, other statutes of this State to the contrary

notwithstanding. Subject to rules for advance wagering

promulgated by the Board, any licensee may accept wagers in

advance of the day of the race wagered upon occurs.

(b) Except for those gaming activities for which a license

is obtained and authorized under the Illinois Lottery Law, the

Charitable Games Act, the Raffles and Poker Runs Act, or the

Illinois Gambling Act, no No other method of betting, pool

making, wagering or gambling shall be used or permitted by the

licensee. Each licensee may retain, subject to the payment of

all applicable taxes and purses, an amount not to exceed 17% of

all money wagered under subsection (a) of this Section, except

as may otherwise be permitted under this Act.

(b-5) An individual may place a wager under the pari-mutuel

system from any licensed location authorized under this Act

provided that wager is electronically recorded in the manner

described in Section 3.12 of this Act. Any wager made

electronically by an individual while physically on the

premises of a licensee shall be deemed to have been made at the

premises of that licensee.

(c) (Blank). Until January 1, 2000, the sum held by any

licensee for payment of outstanding pari-mutuel tickets, if

unclaimed prior to December 31 of the next year, shall be

retained by the licensee for payment of such tickets until that

date. Within 10 days thereafter, the balance of such sum

remaining unclaimed, less any uncashed supplements contributed

by such licensee for the purpose of guaranteeing minimum

distributions of any pari-mutuel pool, shall be paid to the

Illinois Veterans' Rehabilitation Fund of the State treasury,

except as provided in subsection (g) of Section 27 of this Act.

(c-5) The Beginning January 1, 2000, the sum held by any

licensee for payment of outstanding pari-mutuel tickets, if

unclaimed prior to December 31 of the next year, shall be

retained by the licensee for payment of such tickets until that

date. Within 10 days thereafter, the balance of such sum

remaining unclaimed, less any uncashed supplements contributed

by such licensee for the purpose of guaranteeing minimum

distributions of any pari-mutuel pool, shall be evenly

distributed to the purse account of the organization licensee

and the organization licensee, except that the balance of the

sum of all outstanding pari-mutuel tickets generated from

simulcast wagering and inter-track wagering by an organization

licensee located in a county with a population in excess of

230,000 and borders the Mississippi River or any licensee that

derives its license from that organization licensee shall be

evenly distributed to the purse account of the organization

licensee and the organization licensee.

(d) A pari-mutuel ticket shall be honored until December 31

of the next calendar year, and the licensee shall pay the same

and may charge the amount thereof against unpaid money

similarly accumulated on account of pari-mutuel tickets not

presented for payment.

(e) No licensee shall knowingly permit any minor, other

than an employee of such licensee or an owner, trainer, jockey,

driver, or employee thereof, to be admitted during a racing

program unless accompanied by a parent or guardian, or any

minor to be a patron of the pari-mutuel system of wagering

conducted or supervised by it. The admission of any

unaccompanied minor, other than an employee of the licensee or

an owner, trainer, jockey, driver, or employee thereof at a

race track is a Class C misdemeanor.

(f) Notwithstanding the other provisions of this Act, an

organization licensee may contract with an entity in another

state or country to permit any legal wagering entity in another

state or country to accept wagers solely within such other

state or country on races conducted by the organization

licensee in this State. Beginning January 1, 2000, these wagers

shall not be subject to State taxation. Until January 1, 2000,

when the out-of-State entity conducts a pari-mutuel pool

separate from the organization licensee, a privilege tax equal

to 7 1/2% of all monies received by the organization licensee

from entities in other states or countries pursuant to such

contracts is imposed on the organization licensee, and such

privilege tax shall be remitted to the Department of Revenue

within 48 hours of receipt of the moneys from the simulcast.

When the out-of-State entity conducts a combined pari-mutuel

pool with the organization licensee, the tax shall be 10% of

all monies received by the organization licensee with 25% of

the receipts from this 10% tax to be distributed to the county

in which the race was conducted.

An organization licensee may permit one or more of its

races to be utilized for pari-mutuel wagering at one or more

locations in other states and may transmit audio and visual

signals of races the organization licensee conducts to one or

more locations outside the State or country and may also permit

pari-mutuel pools in other states or countries to be combined

with its gross or net wagering pools or with wagering pools

established by other states.

(g) A host track may accept interstate simulcast wagers on

horse races conducted in other states or countries and shall

control the number of signals and types of breeds of racing in

its simulcast program, subject to the disapproval of the Board.

The Board may prohibit a simulcast program only if it finds

that the simulcast program is clearly adverse to the integrity

of racing. The host track simulcast program shall include the

signal of live racing of all organization licensees. All

non-host licensees and advance deposit wagering licensees

shall carry the signal of and accept wagers on live racing of

all organization licensees. Advance deposit wagering licensees

shall not be permitted to accept out-of-state wagers on any

Illinois signal provided pursuant to this Section without the

approval and consent of the organization licensee providing the

signal. For one year after August 15, 2014 (the effective date

of Public Act 98-968), non-host licensees may carry the host

track simulcast program and shall accept wagers on all races

included as part of the simulcast program of horse races

conducted at race tracks located within North America upon

which wagering is permitted. For a period of one year after

August 15, 2014 (the effective date of Public Act 98-968), on

horse races conducted at race tracks located outside of North

America, non-host licensees may accept wagers on all races

included as part of the simulcast program upon which wagering

is permitted. Beginning August 15, 2015 (one year after the

effective date of Public Act 98-968), non-host licensees may

carry the host track simulcast program and shall accept wagers

on all races included as part of the simulcast program upon

which wagering is permitted. All organization licensees shall

provide their live signal to all advance deposit wagering

licensees for a simulcast commission fee not to exceed 6% of

the advance deposit wagering licensee's Illinois handle on the

organization licensee's signal without prior approval by the

Board. The Board may adopt rules under which it may permit

simulcast commission fees in excess of 6%. The Board shall

adopt rules limiting the interstate commission fees charged to

an advance deposit wagering licensee. The Board shall adopt

rules regarding advance deposit wagering on interstate

simulcast races that shall reflect, among other things, the

General Assembly's desire to maximize revenues to the State,

horsemen purses, and organization organizational licensees.

However, organization licensees providing live signals

pursuant to the requirements of this subsection (g) may

petition the Board to withhold their live signals from an

advance deposit wagering licensee if the organization licensee

discovers and the Board finds reputable or credible information

that the advance deposit wagering licensee is under

investigation by another state or federal governmental agency,

the advance deposit wagering licensee's license has been

suspended in another state, or the advance deposit wagering

licensee's license is in revocation proceedings in another

state. The organization licensee's provision of their live

signal to an advance deposit wagering licensee under this

subsection (g) pertains to wagers placed from within Illinois.

Advance deposit wagering licensees may place advance deposit

wagering terminals at wagering facilities as a convenience to

customers. The advance deposit wagering licensee shall not

charge or collect any fee from purses for the placement of the

advance deposit wagering terminals. The costs and expenses of

the host track and non-host licensees associated with

interstate simulcast wagering, other than the interstate

commission fee, shall be borne by the host track and all

non-host licensees incurring these costs. The interstate

commission fee shall not exceed 5% of Illinois handle on the

interstate simulcast race or races without prior approval of

the Board. The Board shall promulgate rules under which it may

permit interstate commission fees in excess of 5%. The

interstate commission fee and other fees charged by the sending

racetrack, including, but not limited to, satellite decoder

fees, shall be uniformly applied to the host track and all

non-host licensees.

Notwithstanding any other provision of this Act, through

December 31, 2020, an organization licensee, with the consent

of the horsemen association representing the largest number of

owners, trainers, jockeys, or standardbred drivers who race

horses at that organization licensee's racing meeting, may

maintain a system whereby advance deposit wagering may take

place or an organization licensee, with the consent of the

horsemen association representing the largest number of

owners, trainers, jockeys, or standardbred drivers who race

horses at that organization licensee's racing meeting, may

contract with another person to carry out a system of advance

deposit wagering. Such consent may not be unreasonably

withheld. Only with respect to an appeal to the Board that

consent for an organization licensee that maintains its own

advance deposit wagering system is being unreasonably

withheld, the Board shall issue a final order within 30 days

after initiation of the appeal, and the organization licensee's

advance deposit wagering system may remain operational during

that 30-day period. The actions of any organization licensee

who conducts advance deposit wagering or any person who has a

contract with an organization licensee to conduct advance

deposit wagering who conducts advance deposit wagering on or

after January 1, 2013 and prior to June 7, 2013 (the effective

date of Public Act 98-18) taken in reliance on the changes made

to this subsection (g) by Public Act 98-18 are hereby

validated, provided payment of all applicable pari-mutuel

taxes are remitted to the Board. All advance deposit wagers

placed from within Illinois must be placed through a

Board-approved advance deposit wagering licensee; no other

entity may accept an advance deposit wager from a person within

Illinois. All advance deposit wagering is subject to any rules

adopted by the Board. The Board may adopt rules necessary to

regulate advance deposit wagering through the use of emergency

rulemaking in accordance with Section 5-45 of the Illinois

Administrative Procedure Act. The General Assembly finds that

the adoption of rules to regulate advance deposit wagering is

deemed an emergency and necessary for the public interest,

safety, and welfare. An advance deposit wagering licensee may

retain all moneys as agreed to by contract with an organization

licensee. Any moneys retained by the organization licensee from

advance deposit wagering, not including moneys retained by the

advance deposit wagering licensee, shall be paid 50% to the

organization licensee's purse account and 50% to the

organization licensee. With the exception of any organization

licensee that is owned by a publicly traded company that is

incorporated in a state other than Illinois and advance deposit

wagering licensees under contract with such organization

licensees, organization licensees that maintain advance

deposit wagering systems and advance deposit wagering

licensees that contract with organization licensees shall

provide sufficiently detailed monthly accountings to the

horsemen association representing the largest number of

owners, trainers, jockeys, or standardbred drivers who race

horses at that organization licensee's racing meeting so that

the horsemen association, as an interested party, can confirm

the accuracy of the amounts paid to the purse account at the

horsemen association's affiliated organization licensee from

advance deposit wagering. If more than one breed races at the

same race track facility, then the 50% of the moneys to be paid

to an organization licensee's purse account shall be allocated

among all organization licensees' purse accounts operating at

that race track facility proportionately based on the actual

number of host days that the Board grants to that breed at that

race track facility in the current calendar year. To the extent

any fees from advance deposit wagering conducted in Illinois

for wagers in Illinois or other states have been placed in

escrow or otherwise withheld from wagers pending a

determination of the legality of advance deposit wagering, no

action shall be brought to declare such wagers or the

disbursement of any fees previously escrowed illegal.

(1) Between the hours of 6:30 a.m. and 6:30 p.m. an

inter-track wagering licensee other than the host track may

supplement the host track simulcast program with

additional simulcast races or race programs, provided that

between January 1 and the third Friday in February of any

year, inclusive, if no live thoroughbred racing is

occurring in Illinois during this period, only

thoroughbred races may be used for supplemental interstate

simulcast purposes. The Board shall withhold approval for a

supplemental interstate simulcast only if it finds that the

simulcast is clearly adverse to the integrity of racing. A

supplemental interstate simulcast may be transmitted from

an inter-track wagering licensee to its affiliated

non-host licensees. The interstate commission fee for a

supplemental interstate simulcast shall be paid by the

non-host licensee and its affiliated non-host licensees

receiving the simulcast.

(2) Between the hours of 6:30 p.m. and 6:30 a.m. an

inter-track wagering licensee other than the host track may

receive supplemental interstate simulcasts only with the

consent of the host track, except when the Board finds that

the simulcast is clearly adverse to the integrity of

racing. Consent granted under this paragraph (2) to any

inter-track wagering licensee shall be deemed consent to

all non-host licensees. The interstate commission fee for

the supplemental interstate simulcast shall be paid by all

participating non-host licensees.

(3) Each licensee conducting interstate simulcast

wagering may retain, subject to the payment of all

applicable taxes and the purses, an amount not to exceed

17% of all money wagered. If any licensee conducts the

pari-mutuel system wagering on races conducted at

racetracks in another state or country, each such race or

race program shall be considered a separate racing day for

the purpose of determining the daily handle and computing

the privilege tax of that daily handle as provided in

subsection (a) of Section 27. Until January 1, 2000, from

the sums permitted to be retained pursuant to this

subsection, each inter-track wagering location licensee

shall pay 1% of the pari-mutuel handle wagered on simulcast

wagering to the Horse Racing Tax Allocation Fund, subject

to the provisions of subparagraph (B) of paragraph (11) of

subsection (h) of Section 26 of this Act.

(4) A licensee who receives an interstate simulcast may

combine its gross or net pools with pools at the sending

racetracks pursuant to rules established by the Board. All

licensees combining their gross pools at a sending

racetrack shall adopt the takeout take-out percentages of

the sending racetrack. A licensee may also establish a

separate pool and takeout structure for wagering purposes

on races conducted at race tracks outside of the State of

Illinois. The licensee may permit pari-mutuel wagers

placed in other states or countries to be combined with its

gross or net wagering pools or other wagering pools.

(5) After the payment of the interstate commission fee

(except for the interstate commission fee on a supplemental

interstate simulcast, which shall be paid by the host track

and by each non-host licensee through the host track

host-track) and all applicable State and local taxes,

except as provided in subsection (g) of Section 27 of this

Act, the remainder of moneys retained from simulcast

wagering pursuant to this subsection (g), and Section 26.2

shall be divided as follows:

(A) For interstate simulcast wagers made at a host

track, 50% to the host track and 50% to purses at the

host track.

(B) For wagers placed on interstate simulcast

races, supplemental simulcasts as defined in

subparagraphs (1) and (2), and separately pooled races

conducted outside of the State of Illinois made at a

non-host licensee, 25% to the host track, 25% to the

non-host licensee, and 50% to the purses at the host

track.

(6) Notwithstanding any provision in this Act to the

contrary, non-host licensees who derive their licenses

from a track located in a county with a population in

excess of 230,000 and that borders the Mississippi River

may receive supplemental interstate simulcast races at all

times subject to Board approval, which shall be withheld

only upon a finding that a supplemental interstate

simulcast is clearly adverse to the integrity of racing.

(7) Effective January 1, 2017, notwithstanding any

provision of this Act to the contrary, after payment of all

applicable State and local taxes and interstate commission

fees, non-host licensees who derive their licenses from a

track located in a county with a population in excess of

230,000 and that borders the Mississippi River shall retain

50% of the retention from interstate simulcast wagers and

shall pay 50% to purses at the track from which the

non-host licensee derives its license.

(7.1) Notwithstanding any other provision of this Act

to the contrary, if no standardbred racing is conducted at

a racetrack located in Madison County during any calendar

year beginning on or after January 1, 2002, all moneys

derived by that racetrack from simulcast wagering and

inter-track wagering that (1) are to be used for purses and

(2) are generated between the hours of 6:30 p.m. and 6:30

a.m. during that calendar year shall be paid as follows:

(A) If the licensee that conducts horse racing at

that racetrack requests from the Board at least as many

racing dates as were conducted in calendar year 2000,

80% shall be paid to its thoroughbred purse account;

and

(B) Twenty percent shall be deposited into the

Illinois Colt Stakes Purse Distribution Fund and shall

be paid to purses for standardbred races for Illinois

conceived and foaled horses conducted at any county

fairgrounds. The moneys deposited into the Fund

pursuant to this subparagraph (B) shall be deposited

within 2 weeks after the day they were generated, shall

be in addition to and not in lieu of any other moneys

paid to standardbred purses under this Act, and shall

not be commingled with other moneys paid into that

Fund. The moneys deposited pursuant to this

subparagraph (B) shall be allocated as provided by the

Department of Agriculture, with the advice and

assistance of the Illinois Standardbred Breeders Fund

Advisory Board.

(7.2) Notwithstanding any other provision of this Act

to the contrary, if no thoroughbred racing is conducted at

a racetrack located in Madison County during any calendar

year beginning on or after January 1, 2002, all moneys

derived by that racetrack from simulcast wagering and

inter-track wagering that (1) are to be used for purses and

(2) are generated between the hours of 6:30 a.m. and 6:30

p.m. during that calendar year shall be deposited as

follows:

(A) If the licensee that conducts horse racing at

that racetrack requests from the Board at least as many

racing dates as were conducted in calendar year 2000,

80% shall be deposited into its standardbred purse

account; and

(B) Twenty percent shall be deposited into the

Illinois Colt Stakes Purse Distribution Fund. Moneys

deposited into the Illinois Colt Stakes Purse

Distribution Fund pursuant to this subparagraph (B)

shall be paid to Illinois conceived and foaled

thoroughbred breeders' programs and to thoroughbred

purses for races conducted at any county fairgrounds

for Illinois conceived and foaled horses at the

discretion of the Department of Agriculture, with the

advice and assistance of the Illinois Thoroughbred

Breeders Fund Advisory Board. The moneys deposited

into the Illinois Colt Stakes Purse Distribution Fund

pursuant to this subparagraph (B) shall be deposited

within 2 weeks after the day they were generated, shall

be in addition to and not in lieu of any other moneys

paid to thoroughbred purses under this Act, and shall

not be commingled with other moneys deposited into that

Fund.

(7.3) (Blank).

(7.4) (Blank).

(8) Notwithstanding any provision in this Act to the

contrary, an organization licensee from a track located in

a county with a population in excess of 230,000 and that

borders the Mississippi River and its affiliated non-host

licensees shall not be entitled to share in any retention

generated on racing, inter-track wagering, or simulcast

wagering at any other Illinois wagering facility.

(8.1) Notwithstanding any provisions in this Act to the

contrary, if 2 organization licensees are conducting

standardbred race meetings concurrently between the hours

of 6:30 p.m. and 6:30 a.m., after payment of all applicable

State and local taxes and interstate commission fees, the

remainder of the amount retained from simulcast wagering

otherwise attributable to the host track and to host track

purses shall be split daily between the 2 organization

licensees and the purses at the tracks of the 2

organization licensees, respectively, based on each

organization licensee's share of the total live handle for

that day, provided that this provision shall not apply to

any non-host licensee that derives its license from a track

located in a county with a population in excess of 230,000

and that borders the Mississippi River.

(9) (Blank).

(10) (Blank).

(11) (Blank).

(12) The Board shall have authority to compel all host

tracks to receive the simulcast of any or all races

conducted at the Springfield or DuQuoin State fairgrounds

and include all such races as part of their simulcast

programs.

(13) Notwithstanding any other provision of this Act,

in the event that the total Illinois pari-mutuel handle on

Illinois horse races at all wagering facilities in any

calendar year is less than 75% of the total Illinois

pari-mutuel handle on Illinois horse races at all such

wagering facilities for calendar year 1994, then each

wagering facility that has an annual total Illinois

pari-mutuel handle on Illinois horse races that is less

than 75% of the total Illinois pari-mutuel handle on

Illinois horse races at such wagering facility for calendar

year 1994, shall be permitted to receive, from any amount

otherwise payable to the purse account at the race track

with which the wagering facility is affiliated in the

succeeding calendar year, an amount equal to 2% of the

differential in total Illinois pari-mutuel handle on

Illinois horse races at the wagering facility between that

calendar year in question and 1994 provided, however, that

a wagering facility shall not be entitled to any such

payment until the Board certifies in writing to the

wagering facility the amount to which the wagering facility

is entitled and a schedule for payment of the amount to the

wagering facility, based on: (i) the racing dates awarded

to the race track affiliated with the wagering facility

during the succeeding year; (ii) the sums available or

anticipated to be available in the purse account of the

race track affiliated with the wagering facility for purses

during the succeeding year; and (iii) the need to ensure

reasonable purse levels during the payment period. The

Board's certification shall be provided no later than

January 31 of the succeeding year. In the event a wagering

facility entitled to a payment under this paragraph (13) is

affiliated with a race track that maintains purse accounts

for both standardbred and thoroughbred racing, the amount

to be paid to the wagering facility shall be divided

between each purse account pro rata, based on the amount of

Illinois handle on Illinois standardbred and thoroughbred

racing respectively at the wagering facility during the

previous calendar year. Annually, the General Assembly

shall appropriate sufficient funds from the General

Revenue Fund to the Department of Agriculture for payment

into the thoroughbred and standardbred horse racing purse

accounts at Illinois pari-mutuel tracks. The amount paid to

each purse account shall be the amount certified by the

Illinois Racing Board in January to be transferred from

each account to each eligible racing facility in accordance

with the provisions of this Section. Beginning in the

calendar year in which an organization licensee that is

eligible to receive payment under this paragraph (13)

begins to receive funds from gaming pursuant to an

organization gaming license issued under the Illinois

Gambling Act, the amount of the payment due to all wagering

facilities licensed under that organization licensee under

this paragraph (13) shall be the amount certified by the

Board in January of that year. An organization licensee and

its related wagering facilities shall no longer be able to

receive payments under this paragraph (13) beginning in the

year subsequent to the first year in which the organization

licensee begins to receive funds from gaming pursuant to an

organization gaming license issued under the Illinois

Gambling Act.

(h) The Board may approve and license the conduct of

inter-track wagering and simulcast wagering by inter-track

wagering licensees and inter-track wagering location licensees

subject to the following terms and conditions:

(1) Any person licensed to conduct a race meeting (i)

at a track where 60 or more days of racing were conducted

during the immediately preceding calendar year or where

over the 5 immediately preceding calendar years an average

of 30 or more days of racing were conducted annually may be

issued an inter-track wagering license; (ii) at a track

located in a county that is bounded by the Mississippi

River, which has a population of less than 150,000

according to the 1990 decennial census, and an average of

at least 60 days of racing per year between 1985 and 1993

may be issued an inter-track wagering license; or (iii) at

a track awarded standardbred racing dates; or (iv) at a

track located in Madison County that conducted at least 100

days of live racing during the immediately preceding

calendar year may be issued an inter-track wagering

license, unless a lesser schedule of live racing is the

result of (A) weather, unsafe track conditions, or other

acts of God; (B) an agreement between the organization

licensee and the associations representing the largest

number of owners, trainers, jockeys, or standardbred

drivers who race horses at that organization licensee's

racing meeting; or (C) a finding by the Board of

extraordinary circumstances and that it was in the best

interest of the public and the sport to conduct fewer than

100 days of live racing. Any such person having operating

control of the racing facility may receive inter-track

wagering location licenses. An eligible race track located

in a county that has a population of more than 230,000 and

that is bounded by the Mississippi River may establish up

to 9 inter-track wagering locations, an eligible race track

located in Stickney Township in Cook County may establish

up to 16 inter-track wagering locations, and an eligible

race track located in Palatine Township in Cook County may

establish up to 18 inter-track wagering locations. An

eligible racetrack conducting standardbred racing may have

up to 16 inter-track wagering locations. An application for

said license shall be filed with the Board prior to such

dates as may be fixed by the Board. With an application for

an inter-track wagering location license there shall be

delivered to the Board a certified check or bank draft

payable to the order of the Board for an amount equal to

$500. The application shall be on forms prescribed and

furnished by the Board. The application shall comply with

all other rules, regulations and conditions imposed by the

Board in connection therewith.

(2) The Board shall examine the applications with

respect to their conformity with this Act and the rules and

regulations imposed by the Board. If found to be in

compliance with the Act and rules and regulations of the

Board, the Board may then issue a license to conduct

inter-track wagering and simulcast wagering to such

applicant. All such applications shall be acted upon by the

Board at a meeting to be held on such date as may be fixed

by the Board.

(3) In granting licenses to conduct inter-track

wagering and simulcast wagering, the Board shall give due

consideration to the best interests of the public, of horse

racing, and of maximizing revenue to the State.

(4) Prior to the issuance of a license to conduct

inter-track wagering and simulcast wagering, the applicant

shall file with the Board a bond payable to the State of

Illinois in the sum of $50,000, executed by the applicant

and a surety company or companies authorized to do business

in this State, and conditioned upon (i) the payment by the

licensee of all taxes due under Section 27 or 27.1 and any

other monies due and payable under this Act, and (ii)

distribution by the licensee, upon presentation of the

winning ticket or tickets, of all sums payable to the

patrons of pari-mutuel pools.

(5) Each license to conduct inter-track wagering and

simulcast wagering shall specify the person to whom it is

issued, the dates on which such wagering is permitted, and

the track or location where the wagering is to be

conducted.

(6) All wagering under such license is subject to this

Act and to the rules and regulations from time to time

prescribed by the Board, and every such license issued by

the Board shall contain a recital to that effect.

(7) An inter-track wagering licensee or inter-track

wagering location licensee may accept wagers at the track

or location where it is licensed, or as otherwise provided

under this Act.

(8) Inter-track wagering or simulcast wagering shall

not be conducted at any track less than 4 5 miles from a

track at which a racing meeting is in progress.

(8.1) Inter-track wagering location licensees who

derive their licenses from a particular organization

licensee shall conduct inter-track wagering and simulcast

wagering only at locations that are within 160 miles of

that race track where the particular organization licensee

is licensed to conduct racing. However, inter-track

wagering and simulcast wagering shall not be conducted by

those licensees at any location within 5 miles of any race

track at which a horse race meeting has been licensed in

the current year, unless the person having operating

control of such race track has given its written consent to

such inter-track wagering location licensees, which

consent must be filed with the Board at or prior to the

time application is made. In the case of any inter-track

wagering location licensee initially licensed after

December 31, 2013, inter-track wagering and simulcast

wagering shall not be conducted by those inter-track

wagering location licensees that are located outside the

City of Chicago at any location within 8 miles of any race

track at which a horse race meeting has been licensed in

the current year, unless the person having operating

control of such race track has given its written consent to

such inter-track wagering location licensees, which

consent must be filed with the Board at or prior to the

time application is made.

(8.2) Inter-track wagering or simulcast wagering shall

not be conducted by an inter-track wagering location

licensee at any location within 500 feet of an existing

church, an or existing elementary or secondary public

school, or an existing elementary or secondary private

school registered with or recognized by the State Board of

Education school, nor within 500 feet of the residences of

more than 50 registered voters without receiving written

permission from a majority of the registered voters at such

residences. Such written permission statements shall be

filed with the Board. The distance of 500 feet shall be

measured to the nearest part of any building used for

worship services, education programs, residential

purposes, or conducting inter-track wagering by an

inter-track wagering location licensee, and not to

property boundaries. However, inter-track wagering or

simulcast wagering may be conducted at a site within 500

feet of a church, school or residences of 50 or more

registered voters if such church, school or residences have

been erected or established, or such voters have been

registered, after the Board issues the original

inter-track wagering location license at the site in

question. Inter-track wagering location licensees may

conduct inter-track wagering and simulcast wagering only

in areas that are zoned for commercial or manufacturing

purposes or in areas for which a special use has been

approved by the local zoning authority. However, no license

to conduct inter-track wagering and simulcast wagering

shall be granted by the Board with respect to any

inter-track wagering location within the jurisdiction of

any local zoning authority which has, by ordinance or by

resolution, prohibited the establishment of an inter-track

wagering location within its jurisdiction. However,

inter-track wagering and simulcast wagering may be

conducted at a site if such ordinance or resolution is

enacted after the Board licenses the original inter-track

wagering location licensee for the site in question.

(9) (Blank).

(10) An inter-track wagering licensee or an

inter-track wagering location licensee may retain, subject

to the payment of the privilege taxes and the purses, an

amount not to exceed 17% of all money wagered. Each program

of racing conducted by each inter-track wagering licensee

or inter-track wagering location licensee shall be

considered a separate racing day for the purpose of

determining the daily handle and computing the privilege

tax or pari-mutuel tax on such daily handle as provided in

Section 27.

(10.1) Except as provided in subsection (g) of Section

27 of this Act, inter-track wagering location licensees

shall pay 1% of the pari-mutuel handle at each location to

the municipality in which such location is situated and 1%

of the pari-mutuel handle at each location to the county in

which such location is situated. In the event that an

inter-track wagering location licensee is situated in an

unincorporated area of a county, such licensee shall pay 2%

of the pari-mutuel handle from such location to such

county.

(10.2) Notwithstanding any other provision of this

Act, with respect to inter-track wagering at a race track

located in a county that has a population of more than

230,000 and that is bounded by the Mississippi River ("the

first race track"), or at a facility operated by an

inter-track wagering licensee or inter-track wagering

location licensee that derives its license from the

organization licensee that operates the first race track,

on races conducted at the first race track or on races

conducted at another Illinois race track and

simultaneously televised to the first race track or to a

facility operated by an inter-track wagering licensee or

inter-track wagering location licensee that derives its

license from the organization licensee that operates the

first race track, those moneys shall be allocated as

follows:

(A) That portion of all moneys wagered on

standardbred racing that is required under this Act to

be paid to purses shall be paid to purses for

standardbred races.

(B) That portion of all moneys wagered on

thoroughbred racing that is required under this Act to

be paid to purses shall be paid to purses for

thoroughbred races.

(11) (A) After payment of the privilege or pari-mutuel

tax, any other applicable taxes, and the costs and expenses

in connection with the gathering, transmission, and

dissemination of all data necessary to the conduct of

inter-track wagering, the remainder of the monies retained

under either Section 26 or Section 26.2 of this Act by the

inter-track wagering licensee on inter-track wagering

shall be allocated with 50% to be split between the 2

participating licensees and 50% to purses, except that an

inter-track wagering licensee that derives its license

from a track located in a county with a population in

excess of 230,000 and that borders the Mississippi River

shall not divide any remaining retention with the Illinois

organization licensee that provides the race or races, and

an inter-track wagering licensee that accepts wagers on

races conducted by an organization licensee that conducts a

race meet in a county with a population in excess of

230,000 and that borders the Mississippi River shall not

divide any remaining retention with that organization

licensee.

(B) From the sums permitted to be retained pursuant to

this Act each inter-track wagering location licensee shall

pay (i) the privilege or pari-mutuel tax to the State; (ii)

4.75% of the pari-mutuel handle on inter-track wagering at

such location on races as purses, except that an

inter-track wagering location licensee that derives its

license from a track located in a county with a population

in excess of 230,000 and that borders the Mississippi River

shall retain all purse moneys for its own purse account

consistent with distribution set forth in this subsection

(h), and inter-track wagering location licensees that

accept wagers on races conducted by an organization

licensee located in a county with a population in excess of

230,000 and that borders the Mississippi River shall

distribute all purse moneys to purses at the operating host

track; (iii) until January 1, 2000, except as provided in

subsection (g) of Section 27 of this Act, 1% of the

pari-mutuel handle wagered on inter-track wagering and

simulcast wagering at each inter-track wagering location

licensee facility to the Horse Racing Tax Allocation Fund,

provided that, to the extent the total amount collected and

distributed to the Horse Racing Tax Allocation Fund under

this subsection (h) during any calendar year exceeds the

amount collected and distributed to the Horse Racing Tax

Allocation Fund during calendar year 1994, that excess

amount shall be redistributed (I) to all inter-track

wagering location licensees, based on each licensee's pro

rata pro-rata share of the total handle from inter-track

wagering and simulcast wagering for all inter-track

wagering location licensees during the calendar year in

which this provision is applicable; then (II) the amounts

redistributed to each inter-track wagering location

licensee as described in subpart (I) shall be further

redistributed as provided in subparagraph (B) of paragraph

(5) of subsection (g) of this Section 26 provided first,

that the shares of those amounts, which are to be

redistributed to the host track or to purses at the host

track under subparagraph (B) of paragraph (5) of subsection

(g) of this Section 26 shall be redistributed based on each

host track's pro rata share of the total inter-track

wagering and simulcast wagering handle at all host tracks

during the calendar year in question, and second, that any

amounts redistributed as described in part (I) to an

inter-track wagering location licensee that accepts wagers

on races conducted by an organization licensee that

conducts a race meet in a county with a population in

excess of 230,000 and that borders the Mississippi River

shall be further redistributed, effective January 1, 2017,

as provided in paragraph (7) of subsection (g) of this

Section 26, with the portion of that further redistribution

allocated to purses at that organization licensee to be

divided between standardbred purses and thoroughbred

purses based on the amounts otherwise allocated to purses

at that organization licensee during the calendar year in

question; and (iv) 8% of the pari-mutuel handle on

inter-track wagering wagered at such location to satisfy

all costs and expenses of conducting its wagering. The

remainder of the monies retained by the inter-track

wagering location licensee shall be allocated 40% to the

location licensee and 60% to the organization licensee

which provides the Illinois races to the location, except

that an inter-track wagering location licensee that

derives its license from a track located in a county with a

population in excess of 230,000 and that borders the

Mississippi River shall not divide any remaining retention

with the organization licensee that provides the race or

races and an inter-track wagering location licensee that

accepts wagers on races conducted by an organization

licensee that conducts a race meet in a county with a

population in excess of 230,000 and that borders the

Mississippi River shall not divide any remaining retention

with the organization licensee. Notwithstanding the

provisions of clauses (ii) and (iv) of this paragraph, in

the case of the additional inter-track wagering location

licenses authorized under paragraph (1) of this subsection

(h) by Public Act 87-110, those licensees shall pay the

following amounts as purses: during the first 12 months the

licensee is in operation, 5.25% of the pari-mutuel handle

wagered at the location on races; during the second 12

months, 5.25%; during the third 12 months, 5.75%; during

the fourth 12 months, 6.25%; and during the fifth 12 months

and thereafter, 6.75%. The following amounts shall be

retained by the licensee to satisfy all costs and expenses

of conducting its wagering: during the first 12 months the

licensee is in operation, 8.25% of the pari-mutuel handle

wagered at the location; during the second 12 months,

8.25%; during the third 12 months, 7.75%; during the fourth

12 months, 7.25%; and during the fifth 12 months and

thereafter, 6.75%. For additional inter-track wagering

location licensees authorized under Public Act 89-16,

purses for the first 12 months the licensee is in operation

shall be 5.75% of the pari-mutuel wagered at the location,

purses for the second 12 months the licensee is in

operation shall be 6.25%, and purses thereafter shall be

6.75%. For additional inter-track location licensees

authorized under Public Act 89-16, the licensee shall be

allowed to retain to satisfy all costs and expenses: 7.75%

of the pari-mutuel handle wagered at the location during

its first 12 months of operation, 7.25% during its second

12 months of operation, and 6.75% thereafter.

(C) There is hereby created the Horse Racing Tax

Allocation Fund which shall remain in existence until

December 31, 1999. Moneys remaining in the Fund after

December 31, 1999 shall be paid into the General Revenue

Fund. Until January 1, 2000, all monies paid into the Horse

Racing Tax Allocation Fund pursuant to this paragraph (11)

by inter-track wagering location licensees located in park

districts of 500,000 population or less, or in a

municipality that is not included within any park district

but is included within a conservation district and is the

county seat of a county that (i) is contiguous to the state

of Indiana and (ii) has a 1990 population of 88,257

according to the United States Bureau of the Census, and

operating on May 1, 1994 shall be allocated by

appropriation as follows:

Two-sevenths to the Department of Agriculture.

Fifty percent of this two-sevenths shall be used to

promote the Illinois horse racing and breeding

industry, and shall be distributed by the Department of

Agriculture upon the advice of a 9-member committee

appointed by the Governor consisting of the following

members: the Director of Agriculture, who shall serve

as chairman; 2 representatives of organization

licensees conducting thoroughbred race meetings in

this State, recommended by those licensees; 2

representatives of organization licensees conducting

standardbred race meetings in this State, recommended

by those licensees; a representative of the Illinois

Thoroughbred Breeders and Owners Foundation,

recommended by that Foundation; a representative of

the Illinois Standardbred Owners and Breeders

Association, recommended by that Association; a

representative of the Horsemen's Benevolent and

Protective Association or any successor organization

thereto established in Illinois comprised of the

largest number of owners and trainers, recommended by

that Association or that successor organization; and a

representative of the Illinois Harness Horsemen's

Association, recommended by that Association.

Committee members shall serve for terms of 2 years,

commencing January 1 of each even-numbered year. If a

representative of any of the above-named entities has

not been recommended by January 1 of any even-numbered

year, the Governor shall appoint a committee member to

fill that position. Committee members shall receive no

compensation for their services as members but shall be

reimbursed for all actual and necessary expenses and

disbursements incurred in the performance of their

official duties. The remaining 50% of this

two-sevenths shall be distributed to county fairs for

premiums and rehabilitation as set forth in the

Agricultural Fair Act;

Four-sevenths to park districts or municipalities

that do not have a park district of 500,000 population

or less for museum purposes (if an inter-track wagering

location licensee is located in such a park district)

or to conservation districts for museum purposes (if an

inter-track wagering location licensee is located in a

municipality that is not included within any park

district but is included within a conservation

district and is the county seat of a county that (i) is

contiguous to the state of Indiana and (ii) has a 1990

population of 88,257 according to the United States

Bureau of the Census, except that if the conservation

district does not maintain a museum, the monies shall

be allocated equally between the county and the

municipality in which the inter-track wagering

location licensee is located for general purposes) or

to a municipal recreation board for park purposes (if

an inter-track wagering location licensee is located

in a municipality that is not included within any park

district and park maintenance is the function of the

municipal recreation board and the municipality has a

1990 population of 9,302 according to the United States

Bureau of the Census); provided that the monies are

distributed to each park district or conservation

district or municipality that does not have a park

district in an amount equal to four-sevenths of the

amount collected by each inter-track wagering location

licensee within the park district or conservation

district or municipality for the Fund. Monies that were

paid into the Horse Racing Tax Allocation Fund before

August 9, 1991 (the effective date of Public Act

87-110) by an inter-track wagering location licensee

located in a municipality that is not included within

any park district but is included within a conservation

district as provided in this paragraph shall, as soon

as practicable after August 9, 1991 (the effective date

of Public Act 87-110), be allocated and paid to that

conservation district as provided in this paragraph.

Any park district or municipality not maintaining a

museum may deposit the monies in the corporate fund of

the park district or municipality where the

inter-track wagering location is located, to be used

for general purposes; and

One-seventh to the Agricultural Premium Fund to be

used for distribution to agricultural home economics

extension councils in accordance with "An Act in

relation to additional support and finances for the

Agricultural and Home Economic Extension Councils in

the several counties of this State and making an

appropriation therefor", approved July 24, 1967.

Until January 1, 2000, all other monies paid into the

Horse Racing Tax Allocation Fund pursuant to this paragraph

(11) shall be allocated by appropriation as follows:

Two-sevenths to the Department of Agriculture.

Fifty percent of this two-sevenths shall be used to

promote the Illinois horse racing and breeding

industry, and shall be distributed by the Department of

Agriculture upon the advice of a 9-member committee

appointed by the Governor consisting of the following

members: the Director of Agriculture, who shall serve

as chairman; 2 representatives of organization

licensees conducting thoroughbred race meetings in

this State, recommended by those licensees; 2

representatives of organization licensees conducting

standardbred race meetings in this State, recommended

by those licensees; a representative of the Illinois

Thoroughbred Breeders and Owners Foundation,

recommended by that Foundation; a representative of

the Illinois Standardbred Owners and Breeders

Association, recommended by that Association; a

representative of the Horsemen's Benevolent and

Protective Association or any successor organization

thereto established in Illinois comprised of the

largest number of owners and trainers, recommended by

that Association or that successor organization; and a

representative of the Illinois Harness Horsemen's

Association, recommended by that Association.

Committee members shall serve for terms of 2 years,

commencing January 1 of each even-numbered year. If a

representative of any of the above-named entities has

not been recommended by January 1 of any even-numbered

year, the Governor shall appoint a committee member to

fill that position. Committee members shall receive no

compensation for their services as members but shall be

reimbursed for all actual and necessary expenses and

disbursements incurred in the performance of their

official duties. The remaining 50% of this

two-sevenths shall be distributed to county fairs for

premiums and rehabilitation as set forth in the

Agricultural Fair Act;

Four-sevenths to museums and aquariums located in

park districts of over 500,000 population; provided

that the monies are distributed in accordance with the

previous year's distribution of the maintenance tax

for such museums and aquariums as provided in Section 2

of the Park District Aquarium and Museum Act; and

One-seventh to the Agricultural Premium Fund to be

used for distribution to agricultural home economics

extension councils in accordance with "An Act in

relation to additional support and finances for the

Agricultural and Home Economic Extension Councils in

the several counties of this State and making an

appropriation therefor", approved July 24, 1967. This

subparagraph (C) shall be inoperative and of no force

and effect on and after January 1, 2000.

(D) Except as provided in paragraph (11) of this

subsection (h), with respect to purse allocation from

inter-track wagering, the monies so retained shall be

divided as follows:

(i) If the inter-track wagering licensee,

except an inter-track wagering licensee that

derives its license from an organization licensee

located in a county with a population in excess of

230,000 and bounded by the Mississippi River, is

not conducting its own race meeting during the same

dates, then the entire purse allocation shall be to

purses at the track where the races wagered on are

being conducted.

(ii) If the inter-track wagering licensee,

except an inter-track wagering licensee that

derives its license from an organization licensee

located in a county with a population in excess of

230,000 and bounded by the Mississippi River, is

also conducting its own race meeting during the

same dates, then the purse allocation shall be as

follows: 50% to purses at the track where the races

wagered on are being conducted; 50% to purses at

the track where the inter-track wagering licensee

is accepting such wagers.

(iii) If the inter-track wagering is being

conducted by an inter-track wagering location

licensee, except an inter-track wagering location

licensee that derives its license from an

organization licensee located in a county with a

population in excess of 230,000 and bounded by the

Mississippi River, the entire purse allocation for

Illinois races shall be to purses at the track

where the race meeting being wagered on is being

held.

(12) The Board shall have all powers necessary and

proper to fully supervise and control the conduct of

inter-track wagering and simulcast wagering by inter-track

wagering licensees and inter-track wagering location

licensees, including, but not limited to the following:

(A) The Board is vested with power to promulgate

reasonable rules and regulations for the purpose of

administering the conduct of this wagering and to

prescribe reasonable rules, regulations and conditions

under which such wagering shall be held and conducted.

Such rules and regulations are to provide for the

prevention of practices detrimental to the public

interest and for the best interests of said wagering

and to impose penalties for violations thereof.

(B) The Board, and any person or persons to whom it

delegates this power, is vested with the power to enter

the facilities of any licensee to determine whether

there has been compliance with the provisions of this

Act and the rules and regulations relating to the

conduct of such wagering.

(C) The Board, and any person or persons to whom it

delegates this power, may eject or exclude from any

licensee's facilities, any person whose conduct or

reputation is such that his presence on such premises

may, in the opinion of the Board, call into the

question the honesty and integrity of, or interfere

with the orderly conduct of such wagering; provided,

however, that no person shall be excluded or ejected

from such premises solely on the grounds of race,

color, creed, national origin, ancestry, or sex.

(D) (Blank).

(E) The Board is vested with the power to appoint

delegates to execute any of the powers granted to it

under this Section for the purpose of administering

this wagering and any rules and regulations

promulgated in accordance with this Act.

(F) The Board shall name and appoint a State

director of this wagering who shall be a representative

of the Board and whose duty it shall be to supervise

the conduct of inter-track wagering as may be provided

for by the rules and regulations of the Board; such

rules and regulation shall specify the method of

appointment and the Director's powers, authority and

duties.

(G) The Board is vested with the power to impose

civil penalties of up to $5,000 against individuals and

up to $10,000 against licensees for each violation of

any provision of this Act relating to the conduct of

this wagering, any rules adopted by the Board, any

order of the Board or any other action which in the

Board's discretion, is a detriment or impediment to

such wagering.

(13) The Department of Agriculture may enter into

agreements with licensees authorizing such licensees to

conduct inter-track wagering on races to be held at the

licensed race meetings conducted by the Department of

Agriculture. Such agreement shall specify the races of the

Department of Agriculture's licensed race meeting upon

which the licensees will conduct wagering. In the event

that a licensee conducts inter-track pari-mutuel wagering

on races from the Illinois State Fair or DuQuoin State Fair

which are in addition to the licensee's previously approved

racing program, those races shall be considered a separate

racing day for the purpose of determining the daily handle

and computing the privilege or pari-mutuel tax on that

daily handle as provided in Sections 27 and 27.1. Such

agreements shall be approved by the Board before such

wagering may be conducted. In determining whether to grant

approval, the Board shall give due consideration to the

best interests of the public and of horse racing. The

provisions of paragraphs (1), (8), (8.1), and (8.2) of

subsection (h) of this Section which are not specified in

this paragraph (13) shall not apply to licensed race

meetings conducted by the Department of Agriculture at the

Illinois State Fair in Sangamon County or the DuQuoin State

Fair in Perry County, or to any wagering conducted on those

race meetings.

(14) An inter-track wagering location license

authorized by the Board in 2016 that is owned and operated

by a race track in Rock Island County shall be transferred

to a commonly owned race track in Cook County on August 12,

2016 (the effective date of Public Act 99-757). The

licensee shall retain its status in relation to purse

distribution under paragraph (11) of this subsection (h)

following the transfer to the new entity. The pari-mutuel

tax credit under Section 32.1 shall not be applied toward

any pari-mutuel tax obligation of the inter-track wagering

location licensee of the license that is transferred under

this paragraph (14).

(i) Notwithstanding the other provisions of this Act, the

conduct of wagering at wagering facilities is authorized on all

days, except as limited by subsection (b) of Section 19 of this

Act.

(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;

100-201, eff. 8-18-17; 100-627, eff. 7-20-18; 100-1152, eff.

12-14-18; revised 1-13-19.)

(230 ILCS 5/26.8)

Sec. 26.8. Beginning on February 1, 2014 and through

December 31, 2020, each wagering licensee may impose a

surcharge of up to 0.5% on winning wagers and winnings from

wagers. The surcharge shall be deducted from winnings prior to

payout. All amounts collected from the imposition of this

surcharge shall be evenly distributed to the organization

licensee and the purse account of the organization licensee

with which the licensee is affiliated. The amounts distributed

under this Section shall be in addition to the amounts paid

pursuant to paragraph (10) of subsection (h) of Section 26,

Section 26.3, Section 26.4, Section 26.5, and Section 26.7.

(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)

(230 ILCS 5/26.9)

Sec. 26.9. Beginning on February 1, 2014 and through

December 31, 2020, in addition to the surcharge imposed in

Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each

licensee shall impose a surcharge of 0.2% on winning wagers and

winnings from wagers. The surcharge shall be deducted from

winnings prior to payout. All amounts collected from the

surcharges imposed under this Section shall be remitted to the

Board. From amounts collected under this Section, the Board

shall deposit an amount not to exceed $100,000 annually into

the Quarter Horse Purse Fund and all remaining amounts into the

Horse Racing Fund.

(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)

(230 ILCS 5/27) (from Ch. 8, par. 37-27)

Sec. 27. (a) In addition to the organization license fee

provided by this Act, until January 1, 2000, a graduated

privilege tax is hereby imposed for conducting the pari-mutuel

system of wagering permitted under this Act. Until January 1,

2000, except as provided in subsection (g) of Section 27 of

this Act, all of the breakage of each racing day held by any

licensee in the State shall be paid to the State. Until January

1, 2000, such daily graduated privilege tax shall be paid by

the licensee from the amount permitted to be retained under

this Act. Until January 1, 2000, each day's graduated privilege

tax, breakage, and Horse Racing Tax Allocation funds shall be

remitted to the Department of Revenue within 48 hours after the

close of the racing day upon which it is assessed or within

such other time as the Board prescribes. The privilege tax

hereby imposed, until January 1, 2000, shall be a flat tax at

the rate of 2% of the daily pari-mutuel handle except as

provided in Section 27.1.

In addition, every organization licensee, except as

provided in Section 27.1 of this Act, which conducts multiple

wagering shall pay, until January 1, 2000, as a privilege tax

on multiple wagers an amount equal to 1.25% of all moneys

wagered each day on such multiple wagers, plus an additional

amount equal to 3.5% of the amount wagered each day on any

other multiple wager which involves a single betting interest

on 3 or more horses. The licensee shall remit the amount of

such taxes to the Department of Revenue within 48 hours after

the close of the racing day on which it is assessed or within

such other time as the Board prescribes.

This subsection (a) shall be inoperative and of no force

and effect on and after January 1, 2000.

(a-5) Beginning on January 1, 2000, a flat pari-mutuel tax

at the rate of 1.5% of the daily pari-mutuel handle is imposed

at all pari-mutuel wagering facilities and on advance deposit

wagering from a location other than a wagering facility, except

as otherwise provided for in this subsection (a-5). In addition

to the pari-mutuel tax imposed on advance deposit wagering

pursuant to this subsection (a-5), beginning on August 24, 2012

(the effective date of Public Act 97-1060) and through December

31, 2020, an additional pari-mutuel tax at the rate of 0.25%

shall be imposed on advance deposit wagering. Until August 25,

2012, the additional 0.25% pari-mutuel tax imposed on advance

deposit wagering by Public Act 96-972 shall be deposited into

the Quarter Horse Purse Fund, which shall be created as a

non-appropriated trust fund administered by the Board for

grants to thoroughbred organization licensees for payment of

purses for quarter horse races conducted by the organization

licensee. Beginning on August 26, 2012, the additional 0.25%

pari-mutuel tax imposed on advance deposit wagering shall be

deposited into the Standardbred Purse Fund, which shall be

created as a non-appropriated trust fund administered by the

Board, for grants to the standardbred organization licensees

for payment of purses for standardbred horse races conducted by

the organization licensee. Thoroughbred organization licensees

may petition the Board to conduct quarter horse racing and

receive purse grants from the Quarter Horse Purse Fund. The

Board shall have complete discretion in distributing the

Quarter Horse Purse Fund to the petitioning organization

licensees. Beginning on July 26, 2010 (the effective date of

Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of

the daily pari-mutuel handle is imposed at a pari-mutuel

facility whose license is derived from a track located in a

county that borders the Mississippi River and conducted live

racing in the previous year. The pari-mutuel tax imposed by

this subsection (a-5) shall be remitted to the Department of

Revenue within 48 hours after the close of the racing day upon

which it is assessed or within such other time as the Board

prescribes.

(a-10) Beginning on the date when an organization licensee

begins conducting gaming pursuant to an organization gaming

license, the following pari-mutuel tax is imposed upon an

organization licensee on Illinois races at the licensee's

racetrack:

1.5% of the pari-mutuel handle at or below the average

daily pari-mutuel handle for 2011.

2% of the pari-mutuel handle above the average daily

pari-mutuel handle for 2011 up to 125% of the average daily

pari-mutuel handle for 2011.

2.5% of the pari-mutuel handle 125% or more above the

average daily pari-mutuel handle for 2011 up to 150% of the

average daily pari-mutuel handle for 2011.

3% of the pari-mutuel handle 150% or more above the

average daily pari-mutuel handle for 2011 up to 175% of the

average daily pari-mutuel handle for 2011.

3.5% of the pari-mutuel handle 175% or more above the

average daily pari-mutuel handle for 2011.

The pari-mutuel tax imposed by this subsection (a-10) shall

be remitted to the Board within 48 hours after the close of the

racing day upon which it is assessed or within such other time

as the Board prescribes.

(b) On or before December 31, 1999, in the event that any

organization licensee conducts 2 separate programs of races on

any day, each such program shall be considered a separate

racing day for purposes of determining the daily handle and

computing the privilege tax on such daily handle as provided in

subsection (a) of this Section.

(c) Licensees shall at all times keep accurate books and

records of all monies wagered on each day of a race meeting and

of the taxes paid to the Department of Revenue under the

provisions of this Section. The Board or its duly authorized

representative or representatives shall at all reasonable

times have access to such records for the purpose of examining

and checking the same and ascertaining whether the proper

amount of taxes is being paid as provided. The Board shall

require verified reports and a statement of the total of all

monies wagered daily at each wagering facility upon which the

taxes are assessed and may prescribe forms upon which such

reports and statement shall be made.

(d) Before a license is issued or re-issued, the licensee

shall post a bond in the sum of $500,000 to the State of

Illinois. The bond shall be used to guarantee that the licensee

faithfully makes the payments, keeps the books and records and

makes reports, and conducts games of chance in conformity with

this Act and the rules adopted by the Board. The bond shall not

be canceled by a surety on less than 30 days' notice in writing

to the Board. If a bond is canceled and the licensee fails to

file a new bond with the Board in the required amount on or

before the effective date of cancellation, the licensee's

license shall be revoked. The total and aggregate liability of

the surety on the bond is limited to the amount specified in

the bond. Any licensee failing or refusing to pay the amount of

any tax due under this Section shall be guilty of a business

offense and upon conviction shall be fined not more than $5,000

in addition to the amount found due as tax under this Section.

Each day's violation shall constitute a separate offense. All

fines paid into Court by a licensee hereunder shall be

transmitted and paid over by the Clerk of the Court to the

Board.

(e) No other license fee, privilege tax, excise tax, or

racing fee, except as provided in this Act, shall be assessed

or collected from any such licensee by the State.

(f) No other license fee, privilege tax, excise tax or

racing fee shall be assessed or collected from any such

licensee by units of local government except as provided in

paragraph 10.1 of subsection (h) and subsection (f) of Section

26 of this Act. However, any municipality that has a Board

licensed horse race meeting at a race track wholly within its

corporate boundaries or a township that has a Board licensed

horse race meeting at a race track wholly within the

unincorporated area of the township may charge a local

amusement tax not to exceed 10¢ per admission to such horse

race meeting by the enactment of an ordinance. However, any

municipality or county that has a Board licensed inter-track

wagering location facility wholly within its corporate

boundaries may each impose an admission fee not to exceed $1.00

per admission to such inter-track wagering location facility,

so that a total of not more than $2.00 per admission may be

imposed. Except as provided in subparagraph (g) of Section 27

of this Act, the inter-track wagering location licensee shall

collect any and all such fees and within 48 hours remit the

fees to the Board as the Board prescribes, which shall,

pursuant to rule, cause the fees to be distributed to the

county or municipality.

(g) Notwithstanding any provision in this Act to the

contrary, if in any calendar year the total taxes and fees from

wagering on live racing and from inter-track wagering required

to be collected from licensees and distributed under this Act

to all State and local governmental authorities exceeds the

amount of such taxes and fees distributed to each State and

local governmental authority to which each State and local

governmental authority was entitled under this Act for calendar

year 1994, then the first $11 million of that excess amount

shall be allocated at the earliest possible date for

distribution as purse money for the succeeding calendar year.

Upon reaching the 1994 level, and until the excess amount of

taxes and fees exceeds $11 million, the Board shall direct all

licensees to cease paying the subject taxes and fees and the

Board shall direct all licensees to allocate any such excess

amount for purses as follows:

(i) the excess amount shall be initially divided

between thoroughbred and standardbred purses based on the

thoroughbred's and standardbred's respective percentages

of total Illinois live wagering in calendar year 1994;

(ii) each thoroughbred and standardbred organization

licensee issued an organization licensee in that

succeeding allocation year shall be allocated an amount

equal to the product of its percentage of total Illinois

live thoroughbred or standardbred wagering in calendar

year 1994 (the total to be determined based on the sum of

1994 on-track wagering for all organization licensees

issued organization licenses in both the allocation year

and the preceding year) multiplied by the total amount

allocated for standardbred or thoroughbred purses,

provided that the first $1,500,000 of the amount allocated

to standardbred purses under item (i) shall be allocated to

the Department of Agriculture to be expended with the

assistance and advice of the Illinois Standardbred

Breeders Funds Advisory Board for the purposes listed in

subsection (g) of Section 31 of this Act, before the amount

allocated to standardbred purses under item (i) is

allocated to standardbred organization licensees in the

succeeding allocation year.

To the extent the excess amount of taxes and fees to be

collected and distributed to State and local governmental

authorities exceeds $11 million, that excess amount shall be

collected and distributed to State and local authorities as

provided for under this Act.

(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)

(230 ILCS 5/29) (from Ch. 8, par. 37-29)

Sec. 29. (a) After the privilege or pari-mutuel tax

established in Sections 26(f), 27, and 27.1 is paid to the

State from the monies retained by the organization licensee

pursuant to Sections 26, 26.2, and 26.3, the remainder of those

monies retained pursuant to Sections 26 and 26.2, except as

provided in subsection (g) of Section 27 of this Act, shall be

allocated evenly to the organization licensee and as purses.

(b) (Blank).

(c) (Blank).

(d) From the amounts generated for purses from all sources,

including, but not limited to, amounts generated from wagering

conducted by organization licensees, organization gaming

licensees, inter-track wagering licensees, inter-track

wagering location licensees, and advance deposit wagering

licensees, an organization licensee shall pay to an

organization representing the largest number of horse owners

and trainers in Illinois, for thoroughbred and standardbred

horses that race at the track of the organization licensee, an

amount equal to at least 5% of any and all revenue earned by

the organization licensee for purses for that calendar year. A

contract with the appropriate thoroughbred or standardbred

horsemen organization shall be negotiated and signed by the

organization licensee before the beginning of each calendar

year. Amounts may be used for any legal purpose, including, but

not limited to, operational expenses, programs for backstretch

workers, retirement plans, diversity scholarships, horse

aftercare programs, workers compensation insurance fees, and

horse ownership programs. Financial statements highlighting

how the funding is spent shall be provided upon request to the

organization licensee. The appropriate thoroughbred or

standardbred horsemen organization shall make that information

available on its website.

Each organization licensee and inter-track wagering

licensee from the money retained for purses as set forth in

subsection (a) of this Section, shall pay to an organization

representing the largest number of horse owners and trainers

which has negotiated a contract with the organization licensee

for such purpose an amount equal to at least 1% of the

organization licensee's and inter-track wagering licensee's

retention of the pari-mutuel handle for the racing season. Each

inter-track wagering location licensee, from the 4% of its

handle required to be paid as purses under paragraph (11) of

subsection (h) of Section 26 of this Act, shall pay to the

contractually established representative organization 2% of

that 4%, provided that the payments so made to the organization

shall not exceed a total of $125,000 in any calendar year. Such

contract shall be negotiated and signed prior to the beginning

of the racing season.

(Source: P.A. 91-40, eff. 6-25-99.)

(230 ILCS 5/30) (from Ch. 8, par. 37-30)

Sec. 30. (a) The General Assembly declares that it is the

policy of this State to encourage the breeding of thoroughbred

horses in this State and the ownership of such horses by

residents of this State in order to provide for: sufficient

numbers of high quality thoroughbred horses to participate in

thoroughbred racing meetings in this State, and to establish

and preserve the agricultural and commercial benefits of such

breeding and racing industries to the State of Illinois. It is

the intent of the General Assembly to further this policy by

the provisions of this Act.

(b) Each organization licensee conducting a thoroughbred

racing meeting pursuant to this Act shall provide at least two

races each day limited to Illinois conceived and foaled horses

or Illinois foaled horses or both. A minimum of 6 races shall

be conducted each week limited to Illinois conceived and foaled

or Illinois foaled horses or both. No horses shall be permitted

to start in such races unless duly registered under the rules

of the Department of Agriculture.

(c) Conditions of races under subsection (b) shall be

commensurate with past performance, quality, and class of

Illinois conceived and foaled and Illinois foaled horses

available. If, however, sufficient competition cannot be had

among horses of that class on any day, the races may, with

consent of the Board, be eliminated for that day and substitute

races provided.

(d) There is hereby created a special fund of the State

Treasury to be known as the Illinois Thoroughbred Breeders

Fund.

Beginning on the effective date of this amendatory Act of

the 101st General Assembly, the Illinois Thoroughbred Breeders

Fund shall become a non-appropriated trust fund held separate

from State moneys. Expenditures from this Fund shall no longer

be subject to appropriation.

Except as provided in subsection (g) of Section 27 of this

Act, 8.5% of all the monies received by the State as privilege

taxes on Thoroughbred racing meetings shall be paid into the

Illinois Thoroughbred Breeders Fund.

Notwithstanding any provision of law to the contrary,

amounts deposited into the Illinois Thoroughbred Breeders Fund

from revenues generated by gaming pursuant to an organization

gaming license issued under the Illinois Gambling Act after the

effective date of this amendatory Act of the 101st General

Assembly shall be in addition to tax and fee amounts paid under

this Section for calendar year 2019 and thereafter.

(e) The Illinois Thoroughbred Breeders Fund shall be

administered by the Department of Agriculture with the advice

and assistance of the Advisory Board created in subsection (f)

of this Section.

(f) The Illinois Thoroughbred Breeders Fund Advisory Board

shall consist of the Director of the Department of Agriculture,

who shall serve as Chairman; a member of the Illinois Racing

Board, designated by it; 2 representatives of the organization

licensees conducting thoroughbred racing meetings, recommended

by them; 2 representatives of the Illinois Thoroughbred

Breeders and Owners Foundation, recommended by it; one

representative and 2 representatives of the Horsemen's

Benevolent Protective Association; and one representative from

the Illinois Thoroughbred Horsemen's Association or any

successor organization established in Illinois comprised of

the largest number of owners and trainers, recommended by it,

with one representative of the Horsemen's Benevolent and

Protective Association to come from its Illinois Division, and

one from its Chicago Division. Advisory Board members shall

serve for 2 years commencing January 1 of each odd numbered

year. If representatives of the organization licensees

conducting thoroughbred racing meetings, the Illinois

Thoroughbred Breeders and Owners Foundation, and the

Horsemen's Benevolent Protection Association, and the Illinois

Thoroughbred Horsemen's Association have not been recommended

by January 1, of each odd numbered year, the Director of the

Department of Agriculture shall make an appointment for the

organization failing to so recommend a member of the Advisory

Board. Advisory Board members shall receive no compensation for

their services as members but shall be reimbursed for all

actual and necessary expenses and disbursements incurred in the

execution of their official duties.

(g) No monies shall be expended from the Illinois

Thoroughbred Breeders Fund except as appropriated by the

General Assembly. Monies expended appropriated from the

Illinois Thoroughbred Breeders Fund shall be expended by the

Department of Agriculture, with the advice and assistance of

the Illinois Thoroughbred Breeders Fund Advisory Board, for the

following purposes only:

(1) To provide purse supplements to owners of horses

participating in races limited to Illinois conceived and

foaled and Illinois foaled horses. Any such purse

supplements shall not be included in and shall be paid in

addition to any purses, stakes, or breeders' awards offered

by each organization licensee as determined by agreement

between such organization licensee and an organization

representing the horsemen. No monies from the Illinois

Thoroughbred Breeders Fund shall be used to provide purse

supplements for claiming races in which the minimum

claiming price is less than $7,500.

(2) To provide stakes and awards to be paid to the

owners of the winning horses in certain races limited to

Illinois conceived and foaled and Illinois foaled horses

designated as stakes races.

(2.5) To provide an award to the owner or owners of an

Illinois conceived and foaled or Illinois foaled horse that

wins a maiden special weight, an allowance, overnight

handicap race, or claiming race with claiming price of

$10,000 or more providing the race is not restricted to

Illinois conceived and foaled or Illinois foaled horses.

Awards shall also be provided to the owner or owners of

Illinois conceived and foaled and Illinois foaled horses

that place second or third in those races. To the extent

that additional moneys are required to pay the minimum

additional awards of 40% of the purse the horse earns for

placing first, second or third in those races for Illinois

foaled horses and of 60% of the purse the horse earns for

placing first, second or third in those races for Illinois

conceived and foaled horses, those moneys shall be provided

from the purse account at the track where earned.

(3) To provide stallion awards to the owner or owners

of any stallion that is duly registered with the Illinois

Thoroughbred Breeders Fund Program prior to the effective

date of this amendatory Act of 1995 whose duly registered

Illinois conceived and foaled offspring wins a race

conducted at an Illinois thoroughbred racing meeting other

than a claiming race, provided that the stallion stood

service within Illinois at the time the offspring was

conceived and that the stallion did not stand for service

outside of Illinois at any time during the year in which

the offspring was conceived. Such award shall not be paid

to the owner or owners of an Illinois stallion that served

outside this State at any time during the calendar year in

which such race was conducted.

(4) To provide $75,000 annually for purses to be

distributed to county fairs that provide for the running of

races during each county fair exclusively for the

thoroughbreds conceived and foaled in Illinois. The

conditions of the races shall be developed by the county

fair association and reviewed by the Department with the

advice and assistance of the Illinois Thoroughbred

Breeders Fund Advisory Board. There shall be no wagering of

any kind on the running of Illinois conceived and foaled

races at county fairs.

(4.1) To provide purse money for an Illinois stallion

stakes program.

(5) No less than 90% 80% of all monies expended

appropriated from the Illinois Thoroughbred Breeders Fund

shall be expended for the purposes in (1), (2), (2.5), (3),

(4), (4.1), and (5) as shown above.

(6) To provide for educational programs regarding the

thoroughbred breeding industry.

(7) To provide for research programs concerning the

health, development and care of the thoroughbred horse.

(8) To provide for a scholarship and training program

for students of equine veterinary medicine.

(9) To provide for dissemination of public information

designed to promote the breeding of thoroughbred horses in

Illinois.

(10) To provide for all expenses incurred in the

administration of the Illinois Thoroughbred Breeders Fund.

(h) The Illinois Thoroughbred Breeders Fund is not subject

to administrative charges or chargebacks, including, but not

limited to, those authorized under Section 8h of the State

Finance Act. Whenever the Governor finds that the amount in the

Illinois Thoroughbred Breeders Fund is more than the total of

the outstanding appropriations from such fund, the Governor

shall notify the State Comptroller and the State Treasurer of

such fact. The Comptroller and the State Treasurer, upon

receipt of such notification, shall transfer such excess amount

from the Illinois Thoroughbred Breeders Fund to the General

Revenue Fund.

(i) A sum equal to 13% of the first prize money of every

purse won by an Illinois foaled or Illinois conceived and

foaled horse in races not limited to Illinois foaled horses or

Illinois conceived and foaled horses, or both, shall be paid by

the organization licensee conducting the horse race meeting.

Such sum shall be paid 50% from the organization licensee's

share of the money wagered and 50% from the purse account as

follows: 11 1/2% to the breeder of the winning horse and 1 1/2%

to the organization representing thoroughbred breeders and

owners who representative serves on the Illinois Thoroughbred

Breeders Fund Advisory Board for verifying the amounts of

breeders' awards earned, ensuring their distribution in

accordance with this Act, and servicing and promoting the

Illinois thoroughbred horse racing industry. Beginning in the

calendar year in which an organization licensee that is

eligible to receive payments under paragraph (13) of subsection

(g) of Section 26 of this Act begins to receive funds from

gaming pursuant to an organization gaming license issued under

the Illinois Gambling Act, a sum equal to 21 1/2% of the first

prize money of every purse won by an Illinois foaled or an

Illinois conceived and foaled horse in races not limited to an

Illinois conceived and foaled horse, or both, shall be paid 30%

from the organization licensee's account and 70% from the purse

account as follows: 20% to the breeder of the winning horse and

1 1/2% to the organization representing thoroughbred breeders

and owners whose representatives serve on the Illinois

Thoroughbred Breeders Fund Advisory Board for verifying the

amounts of breeders' awards earned, ensuring their

distribution in accordance with this Act, and servicing and

promoting the Illinois Thoroughbred racing industry. A sum

equal to 12 1/2% of the first prize money of every purse won by

an Illinois foaled or an Illinois conceived and foaled horse in

races not limited to Illinois foaled horses or Illinois

conceived and foaled horses, or both, shall be paid by the

organization licensee conducting the horse race meeting. Such

sum shall be paid from the organization licensee's share of the

money wagered as follows: 11 1/2% to the breeder of the winning

horse and 1% to the organization representing thoroughbred

breeders and owners whose representative serves on the Illinois

Thoroughbred Breeders Fund Advisory Board for verifying the

amounts of breeders' awards earned, assuring their

distribution in accordance with this Act, and servicing and

promoting the Illinois thoroughbred horse racing industry. The

organization representing thoroughbred breeders and owners

shall cause all expenditures of monies received under this

subsection (i) to be audited at least annually by a registered

public accountant. The organization shall file copies of each

annual audit with the Racing Board, the Clerk of the House of

Representatives and the Secretary of the Senate, and shall make

copies of each annual audit available to the public upon

request and upon payment of the reasonable cost of photocopying

the requested number of copies. Such payments shall not reduce

any award to the owner of the horse or reduce the taxes payable

under this Act. Upon completion of its racing meet, each

organization licensee shall deliver to the organization

representing thoroughbred breeders and owners whose

representative serves on the Illinois Thoroughbred Breeders

Fund Advisory Board a listing of all the Illinois foaled and

the Illinois conceived and foaled horses which won breeders'

awards and the amount of such breeders' awards under this

subsection to verify accuracy of payments and assure proper

distribution of breeders' awards in accordance with the

provisions of this Act. Such payments shall be delivered by the

organization licensee within 30 days of the end of each race

meeting.

(j) A sum equal to 13% of the first prize money won in

every race limited to Illinois foaled horses or Illinois

conceived and foaled horses, or both, shall be paid in the

following manner by the organization licensee conducting the

horse race meeting, 50% from the organization licensee's share

of the money wagered and 50% from the purse account as follows:

11 1/2% to the breeders of the horses in each such race which

are the official first, second, third, and fourth finishers and

1 1/2% to the organization representing thoroughbred breeders

and owners whose representatives serve on the Illinois

Thoroughbred Breeders Fund Advisory Board for verifying the

amounts of breeders' awards earned, ensuring their proper

distribution in accordance with this Act, and servicing and

promoting the Illinois horse racing industry. Beginning in the

calendar year in which an organization licensee that is

eligible to receive payments under paragraph (13) of subsection

(g) of Section 26 of this Act begins to receive funds from

gaming pursuant to an organization gaming license issued under

the Illinois Gambling Act, a sum of 21 1/2% of every purse in a

race limited to Illinois foaled horses or Illinois conceived

and foaled horses, or both, shall be paid by the organization

licensee conducting the horse race meeting. Such sum shall be

paid 30% from the organization licensee's account and 70% from

the purse account as follows: 20% to the breeders of the horses

in each such race who are official first, second, third and

fourth finishers and 1 1/2% to the organization representing

thoroughbred breeders and owners whose representatives serve

on the Illinois Thoroughbred Breeders Fund Advisory Board for

verifying the amounts of breeders' awards earned, ensuring

their proper distribution in accordance with this Act, and

servicing and promoting the Illinois thoroughbred horse racing

industry. The organization representing thoroughbred breeders

and owners shall cause all expenditures of moneys received

under this subsection (j) to be audited at least annually by a

registered public accountant. The organization shall file

copies of each annual audit with the Racing Board, the Clerk of

the House of Representatives and the Secretary of the Senate,

and shall make copies of each annual audit available to the

public upon request and upon payment of the reasonable cost of

photocopying the requested number of copies. The copies of the

audit to the General Assembly shall be filed with the Clerk of

the House of Representatives and the Secretary of the Senate in

electronic form only, in the manner that the Clerk and the

Secretary shall direct. A sum equal to 12 1/2% of the first

prize money won in each race limited to Illinois foaled horses

or Illinois conceived and foaled horses, or both, shall be paid

in the following manner by the organization licensee conducting

the horse race meeting, from the organization licensee's share

of the money wagered: 11 1/2% to the breeders of the horses in

each such race which are the official first, second, third and

fourth finishers and 1% to the organization representing

thoroughbred breeders and owners whose representative serves

on the Illinois Thoroughbred Breeders Fund Advisory Board for

verifying the amounts of breeders' awards earned, assuring

their proper distribution in accordance with this Act, and

servicing and promoting the Illinois thoroughbred horse racing

industry. The organization representing thoroughbred breeders

and owners shall cause all expenditures of monies received

under this subsection (j) to be audited at least annually by a

registered public accountant. The organization shall file

copies of each annual audit with the Racing Board, the Clerk of

the House of Representatives and the Secretary of the Senate,

and shall make copies of each annual audit available to the

public upon request and upon payment of the reasonable cost of

photocopying the requested number of copies.

The amounts 11 1/2% paid to the breeders in accordance with

this subsection shall be distributed as follows:

(1) 60% of such sum shall be paid to the breeder of the

horse which finishes in the official first position;

(2) 20% of such sum shall be paid to the breeder of the

horse which finishes in the official second position;

(3) 15% of such sum shall be paid to the breeder of the

horse which finishes in the official third position; and

(4) 5% of such sum shall be paid to the breeder of the

horse which finishes in the official fourth position.

Such payments shall not reduce any award to the owners of a

horse or reduce the taxes payable under this Act. Upon

completion of its racing meet, each organization licensee shall

deliver to the organization representing thoroughbred breeders

and owners whose representative serves on the Illinois

Thoroughbred Breeders Fund Advisory Board a listing of all the

Illinois foaled and the Illinois conceived and foaled horses

which won breeders' awards and the amount of such breeders'

awards in accordance with the provisions of this Act. Such

payments shall be delivered by the organization licensee within

30 days of the end of each race meeting.

(k) The term "breeder", as used herein, means the owner of

the mare at the time the foal is dropped. An "Illinois foaled

horse" is a foal dropped by a mare which enters this State on

or before December 1, in the year in which the horse is bred,

provided the mare remains continuously in this State until its

foal is born. An "Illinois foaled horse" also means a foal born

of a mare in the same year as the mare enters this State on or

before March 1, and remains in this State at least 30 days

after foaling, is bred back during the season of the foaling to

an Illinois Registered Stallion (unless a veterinarian

certifies that the mare should not be bred for health reasons),

and is not bred to a stallion standing in any other state

during the season of foaling. An "Illinois foaled horse" also

means a foal born in Illinois of a mare purchased at public

auction subsequent to the mare entering this State on or before

March 1 prior to February 1 of the foaling year providing the

mare is owned solely by one or more Illinois residents or an

Illinois entity that is entirely owned by one or more Illinois

residents.

(l) The Department of Agriculture shall, by rule, with the

advice and assistance of the Illinois Thoroughbred Breeders

Fund Advisory Board:

(1) Qualify stallions for Illinois breeding; such

stallions to stand for service within the State of Illinois

at the time of a foal's conception. Such stallion must not

stand for service at any place outside the State of

Illinois during the calendar year in which the foal is

conceived. The Department of Agriculture may assess and

collect an application fee of up to $500 fees for the

registration of Illinois-eligible stallions. All fees

collected are to be held in trust accounts for the purposes

set forth in this Act and in accordance with Section 205-15

of the Department of Agriculture Law paid into the Illinois

Thoroughbred Breeders Fund.

(2) Provide for the registration of Illinois conceived

and foaled horses and Illinois foaled horses. No such horse

shall compete in the races limited to Illinois conceived

and foaled horses or Illinois foaled horses or both unless

registered with the Department of Agriculture. The

Department of Agriculture may prescribe such forms as are

necessary to determine the eligibility of such horses. The

Department of Agriculture may assess and collect

application fees for the registration of Illinois-eligible

foals. All fees collected are to be held in trust accounts

for the purposes set forth in this Act and in accordance

with Section 205-15 of the Department of Agriculture Law

paid into the Illinois Thoroughbred Breeders Fund. No

person shall knowingly prepare or cause preparation of an

application for registration of such foals containing

false information.

(m) The Department of Agriculture, with the advice and

assistance of the Illinois Thoroughbred Breeders Fund Advisory

Board, shall provide that certain races limited to Illinois

conceived and foaled and Illinois foaled horses be stakes races

and determine the total amount of stakes and awards to be paid

to the owners of the winning horses in such races.

In determining the stakes races and the amount of awards

for such races, the Department of Agriculture shall consider

factors, including but not limited to, the amount of money

appropriated for the Illinois Thoroughbred Breeders Fund

program, organization licensees' contributions, availability

of stakes caliber horses as demonstrated by past performances,

whether the race can be coordinated into the proposed racing

dates within organization licensees' racing dates, opportunity

for colts and fillies and various age groups to race, public

wagering on such races, and the previous racing schedule.

(n) The Board and the organization organizational licensee

shall notify the Department of the conditions and minimum

purses for races limited to Illinois conceived and foaled and

Illinois foaled horses conducted for each organization

organizational licensee conducting a thoroughbred racing

meeting. The Department of Agriculture with the advice and

assistance of the Illinois Thoroughbred Breeders Fund Advisory

Board may allocate monies for purse supplements for such races.

In determining whether to allocate money and the amount, the

Department of Agriculture shall consider factors, including

but not limited to, the amount of money appropriated for the

Illinois Thoroughbred Breeders Fund program, the number of

races that may occur, and the organization organizational

licensee's purse structure.

(o) (Blank).

(Source: P.A. 98-692, eff. 7-1-14.)

(230 ILCS 5/30.5)

Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.

(a) The General Assembly declares that it is the policy of

this State to encourage the breeding of racing quarter horses

in this State and the ownership of such horses by residents of

this State in order to provide for sufficient numbers of high

quality racing quarter horses in this State and to establish

and preserve the agricultural and commercial benefits of such

breeding and racing industries to the State of Illinois. It is

the intent of the General Assembly to further this policy by

the provisions of this Act.

(b) There is hereby created a special fund in the State

Treasury to be known as the Illinois Racing Quarter Horse

Breeders Fund. Except as provided in subsection (g) of Section

27 of this Act, 8.5% of all the moneys received by the State as

pari-mutuel taxes on quarter horse racing shall be paid into

the Illinois Racing Quarter Horse Breeders Fund. The Illinois

Racing Quarter Horse Breeders Fund shall not be subject to

administrative charges or chargebacks, including, but not

limited to, those authorized under Section 8h of the State

Finance Act.

(c) The Illinois Racing Quarter Horse Breeders Fund shall

be administered by the Department of Agriculture with the

advice and assistance of the Advisory Board created in

subsection (d) of this Section.

(d) The Illinois Racing Quarter Horse Breeders Fund

Advisory Board shall consist of the Director of the Department

of Agriculture, who shall serve as Chairman; a member of the

Illinois Racing Board, designated by it; one representative of

the organization licensees conducting pari-mutuel quarter

horse racing meetings, recommended by them; 2 representatives

of the Illinois Running Quarter Horse Association, recommended

by it; and the Superintendent of Fairs and Promotions from the

Department of Agriculture. Advisory Board members shall serve

for 2 years commencing January 1 of each odd numbered year. If

representatives have not been recommended by January 1 of each

odd numbered year, the Director of the Department of

Agriculture may make an appointment for the organization

failing to so recommend a member of the Advisory Board.

Advisory Board members shall receive no compensation for their

services as members but may be reimbursed for all actual and

necessary expenses and disbursements incurred in the execution

of their official duties.

(e) Moneys in No moneys shall be expended from the Illinois

Racing Quarter Horse Breeders Fund except as appropriated by

the General Assembly. Moneys appropriated from the Illinois

Racing Quarter Horse Breeders Fund shall be expended by the

Department of Agriculture, with the advice and assistance of

the Illinois Racing Quarter Horse Breeders Fund Advisory Board,

for the following purposes only:

(1) To provide stakes and awards to be paid to the

owners of the winning horses in certain races. This

provision is limited to Illinois conceived and foaled

horses.

(2) To provide an award to the owner or owners of an

Illinois conceived and foaled horse that wins a race when

pari-mutuel wagering is conducted; providing the race is

not restricted to Illinois conceived and foaled horses.

(3) To provide purse money for an Illinois stallion

stakes program.

(4) To provide for purses to be distributed for the

running of races during the Illinois State Fair and the

DuQuoin State Fair exclusively for quarter horses

conceived and foaled in Illinois.

(5) To provide for purses to be distributed for the

running of races at Illinois county fairs exclusively for

quarter horses conceived and foaled in Illinois.

(6) To provide for purses to be distributed for running

races exclusively for quarter horses conceived and foaled

in Illinois at locations in Illinois determined by the

Department of Agriculture with advice and consent of the

Illinois Racing Quarter Horse Breeders Fund Advisory

Board.

(7) No less than 90% of all moneys appropriated from

the Illinois Racing Quarter Horse Breeders Fund shall be

expended for the purposes in items (1), (2), (3), (4), and

(5) of this subsection (e).

(8) To provide for research programs concerning the

health, development, and care of racing quarter horses.

(9) To provide for dissemination of public information

designed to promote the breeding of racing quarter horses

in Illinois.

(10) To provide for expenses incurred in the

administration of the Illinois Racing Quarter Horse

Breeders Fund.

(f) The Department of Agriculture shall, by rule, with the

advice and assistance of the Illinois Racing Quarter Horse

Breeders Fund Advisory Board:

(1) Qualify stallions for Illinois breeding; such

stallions to stand for service within the State of

Illinois, at the time of a foal's conception. Such stallion

must not stand for service at any place outside the State

of Illinois during the calendar year in which the foal is

conceived. The Department of Agriculture may assess and

collect application fees for the registration of

Illinois-eligible stallions. All fees collected are to be

paid into the Illinois Racing Quarter Horse Breeders Fund.

(2) Provide for the registration of Illinois conceived

and foaled horses. No such horse shall compete in the races

limited to Illinois conceived and foaled horses unless it

is registered with the Department of Agriculture. The

Department of Agriculture may prescribe such forms as are

necessary to determine the eligibility of such horses. The

Department of Agriculture may assess and collect

application fees for the registration of Illinois-eligible

foals. All fees collected are to be paid into the Illinois

Racing Quarter Horse Breeders Fund. No person shall

knowingly prepare or cause preparation of an application

for registration of such foals that contains false

information.

(g) The Department of Agriculture, with the advice and

assistance of the Illinois Racing Quarter Horse Breeders Fund

Advisory Board, shall provide that certain races limited to

Illinois conceived and foaled be stakes races and determine the

total amount of stakes and awards to be paid to the owners of

the winning horses in such races.

(Source: P.A. 98-463, eff. 8-16-13.)

(230 ILCS 5/31) (from Ch. 8, par. 37-31)

Sec. 31. (a) The General Assembly declares that it is the

policy of this State to encourage the breeding of standardbred

horses in this State and the ownership of such horses by

residents of this State in order to provide for: sufficient

numbers of high quality standardbred horses to participate in

harness racing meetings in this State, and to establish and

preserve the agricultural and commercial benefits of such

breeding and racing industries to the State of Illinois. It is

the intent of the General Assembly to further this policy by

the provisions of this Section of this Act.

(b) Each organization licensee conducting a harness racing

meeting pursuant to this Act shall provide for at least two

races each race program limited to Illinois conceived and

foaled horses. A minimum of 6 races shall be conducted each

week limited to Illinois conceived and foaled horses. No horses

shall be permitted to start in such races unless duly

registered under the rules of the Department of Agriculture.

(b-5) Organization licensees, not including the Illinois

State Fair or the DuQuoin State Fair, shall provide stake races

and early closer races for Illinois conceived and foaled horses

so that purses distributed for such races shall be no less than

17% of total purses distributed for harness racing in that

calendar year in addition to any stakes payments and starting

fees contributed by horse owners.

(b-10) Each organization licensee conducting a harness

racing meeting pursuant to this Act shall provide an owner

award to be paid from the purse account equal to 12% of the

amount earned by Illinois conceived and foaled horses finishing

in the first 3 positions in races that are not restricted to

Illinois conceived and foaled horses. The owner awards shall

not be paid on races below the $10,000 claiming class.

(c) Conditions of races under subsection (b) shall be

commensurate with past performance, quality and class of

Illinois conceived and foaled horses available. If, however,

sufficient competition cannot be had among horses of that class

on any day, the races may, with consent of the Board, be

eliminated for that day and substitute races provided.

(d) There is hereby created a special fund of the State

Treasury to be known as the Illinois Standardbred Breeders

Fund. Beginning on the effective date of this amendatory Act of

the 101st General Assembly, the Illinois Standardbred Breeders

Fund shall become a non-appropriated trust fund held separate

and apart from State moneys. Expenditures from this Fund shall

no longer be subject to appropriation.

During the calendar year 1981, and each year thereafter,

except as provided in subsection (g) of Section 27 of this Act,

eight and one-half per cent of all the monies received by the

State as privilege taxes on harness racing meetings shall be

paid into the Illinois Standardbred Breeders Fund.

(e) Notwithstanding any provision of law to the contrary,

amounts deposited into the Illinois Standardbred Breeders Fund

from revenues generated by gaming pursuant to an organization

gaming license issued under the Illinois Gambling Act after the

effective date of this amendatory Act of the 101st General

Assembly shall be in addition to tax and fee amounts paid under

this Section for calendar year 2019 and thereafter. The

Illinois Standardbred Breeders Fund shall be administered by

the Department of Agriculture with the assistance and advice of

the Advisory Board created in subsection (f) of this Section.

(f) The Illinois Standardbred Breeders Fund Advisory Board

is hereby created. The Advisory Board shall consist of the

Director of the Department of Agriculture, who shall serve as

Chairman; the Superintendent of the Illinois State Fair; a

member of the Illinois Racing Board, designated by it; a

representative of the largest association of Illinois

standardbred owners and breeders, recommended by it; a

representative of a statewide association representing

agricultural fairs in Illinois, recommended by it, such

representative to be from a fair at which Illinois conceived

and foaled racing is conducted; a representative of the

organization licensees conducting harness racing meetings,

recommended by them; a representative of the Breeder's

Committee of the association representing the largest number of

standardbred owners, breeders, trainers, caretakers, and

drivers, recommended by it; and a representative of the

association representing the largest number of standardbred

owners, breeders, trainers, caretakers, and drivers,

recommended by it. Advisory Board members shall serve for 2

years commencing January 1 of each odd numbered year. If

representatives of the largest association of Illinois

standardbred owners and breeders, a statewide association of

agricultural fairs in Illinois, the association representing

the largest number of standardbred owners, breeders, trainers,

caretakers, and drivers, a member of the Breeder's Committee of

the association representing the largest number of

standardbred owners, breeders, trainers, caretakers, and

drivers, and the organization licensees conducting harness

racing meetings have not been recommended by January 1 of each

odd numbered year, the Director of the Department of

Agriculture shall make an appointment for the organization

failing to so recommend a member of the Advisory Board.

Advisory Board members shall receive no compensation for their

services as members but shall be reimbursed for all actual and

necessary expenses and disbursements incurred in the execution

of their official duties.

(g) No monies shall be expended from the Illinois

Standardbred Breeders Fund except as appropriated by the

General Assembly. Monies expended appropriated from the

Illinois Standardbred Breeders Fund shall be expended by the

Department of Agriculture, with the assistance and advice of

the Illinois Standardbred Breeders Fund Advisory Board for the

following purposes only:

1. To provide purses for races limited to Illinois

conceived and foaled horses at the State Fair and the

DuQuoin State Fair.

2. To provide purses for races limited to Illinois

conceived and foaled horses at county fairs.

3. To provide purse supplements for races limited to

Illinois conceived and foaled horses conducted by

associations conducting harness racing meetings.

4. No less than 75% of all monies in the Illinois

Standardbred Breeders Fund shall be expended for purses in

1, 2 and 3 as shown above.

5. In the discretion of the Department of Agriculture

to provide awards to harness breeders of Illinois conceived

and foaled horses which win races conducted by organization

licensees conducting harness racing meetings. A breeder is

the owner of a mare at the time of conception. No more than

10% of all monies appropriated from the Illinois

Standardbred Breeders Fund shall be expended for such

harness breeders awards. No more than 25% of the amount

expended for harness breeders awards shall be expended for

expenses incurred in the administration of such harness

breeders awards.

6. To pay for the improvement of racing facilities

located at the State Fair and County fairs.

7. To pay the expenses incurred in the administration

of the Illinois Standardbred Breeders Fund.

8. To promote the sport of harness racing, including

grants up to a maximum of $7,500 per fair per year for

conducting pari-mutuel wagering during the advertised

dates of a county fair.

9. To pay up to $50,000 annually for the Department of

Agriculture to conduct drug testing at county fairs racing

standardbred horses.

(h) The Illinois Standardbred Breeders Fund is not subject

to administrative charges or chargebacks, including, but not

limited to, those authorized under Section 8h of the State

Finance Act. Whenever the Governor finds that the amount in the

Illinois Standardbred Breeders Fund is more than the total of

the outstanding appropriations from such fund, the Governor

shall notify the State Comptroller and the State Treasurer of

such fact. The Comptroller and the State Treasurer, upon

receipt of such notification, shall transfer such excess amount

from the Illinois Standardbred Breeders Fund to the General

Revenue Fund.

(i) A sum equal to 13% 12 1/2% of the first prize money of

the gross every purse won by an Illinois conceived and foaled

horse shall be paid 50% by the organization licensee conducting

the horse race meeting to the breeder of such winning horse

from the organization licensee's account and 50% from the purse

account of the licensee share of the money wagered. Such

payment shall not reduce any award to the owner of the horse or

reduce the taxes payable under this Act. Such payment shall be

delivered by the organization licensee at the end of each

quarter race meeting.

(j) The Department of Agriculture shall, by rule, with the

assistance and advice of the Illinois Standardbred Breeders

Fund Advisory Board:

1. Qualify stallions for Illinois Standardbred

Breeders Fund breeding; such stallion shall be owned by a

resident of the State of Illinois or by an Illinois

corporation all of whose shareholders, directors, officers

and incorporators are residents of the State of Illinois.

Such stallion shall stand for service at and within the

State of Illinois at the time of a foal's conception, and

such stallion must not stand for service at any place, nor

may semen from such stallion be transported, outside the

State of Illinois during that calendar year in which the

foal is conceived and that the owner of the stallion was

for the 12 months prior, a resident of Illinois. However,

from January 1, 2018 until January 1, 2022, semen from an

Illinois stallion may be transported outside the State of

Illinois. The articles of agreement of any partnership,

joint venture, limited partnership, syndicate, association

or corporation and any bylaws and stock certificates must

contain a restriction that provides that the ownership or

transfer of interest by any one of the persons a party to

the agreement can only be made to a person who qualifies as

an Illinois resident.

2. Provide for the registration of Illinois conceived

and foaled horses and no such horse shall compete in the

races limited to Illinois conceived and foaled horses

unless registered with the Department of Agriculture. The

Department of Agriculture may prescribe such forms as may

be necessary to determine the eligibility of such horses.

No person shall knowingly prepare or cause preparation of

an application for registration of such foals containing

false information. A mare (dam) must be in the State at

least 30 days prior to foaling or remain in the State at

least 30 days at the time of foaling. However, the

requirement that a mare (dam) must be in the State at least

30 days before foaling or remain in the State at least 30

days at the time of foaling shall not be in effect from

January 1, 2018 until January 1, 2022. Beginning with the

1996 breeding season and for foals of 1997 and thereafter,

a foal conceived by transported semen may be eligible for

Illinois conceived and foaled registration provided all

breeding and foaling requirements are met. The stallion

must be qualified for Illinois Standardbred Breeders Fund

breeding at the time of conception and the mare must be

inseminated within the State of Illinois. The foal must be

dropped in Illinois and properly registered with the

Department of Agriculture in accordance with this Act.

However, from January 1, 2018 until January 1, 2022, the

requirement for a mare to be inseminated within the State

of Illinois and the requirement for a foal to be dropped in

Illinois are inapplicable.

3. Provide that at least a 5 day racing program shall

be conducted at the State Fair each year, which program

shall include at least the following races limited to

Illinois conceived and foaled horses: (a) a two year old

Trot and Pace, and Filly Division of each; (b) a three year

old Trot and Pace, and Filly Division of each; (c) an aged

Trot and Pace, and Mare Division of each.

4. Provide for the payment of nominating, sustaining

and starting fees for races promoting the sport of harness

racing and for the races to be conducted at the State Fair

as provided in subsection (j) 3 of this Section provided

that the nominating, sustaining and starting payment

required from an entrant shall not exceed 2% of the purse

of such race. All nominating, sustaining and starting

payments shall be held for the benefit of entrants and

shall be paid out as part of the respective purses for such

races. Nominating, sustaining and starting fees shall be

held in trust accounts for the purposes as set forth in

this Act and in accordance with Section 205-15 of the

Department of Agriculture Law (20 ILCS 205/205-15).

5. Provide for the registration with the Department of

Agriculture of Colt Associations or county fairs desiring

to sponsor races at county fairs.

6. Provide for the promotion of producing standardbred

racehorses by providing a bonus award program for owners of

2-year-old horses that win multiple major stakes races that

are limited to Illinois conceived and foaled horses.

(k) The Department of Agriculture, with the advice and

assistance of the Illinois Standardbred Breeders Fund Advisory

Board, may allocate monies for purse supplements for such

races. In determining whether to allocate money and the amount,

the Department of Agriculture shall consider factors,

including but not limited to, the amount of money appropriated

for the Illinois Standardbred Breeders Fund program, the number

of races that may occur, and an organization organizational

licensee's purse structure. The organization organizational

licensee shall notify the Department of Agriculture of the

conditions and minimum purses for races limited to Illinois

conceived and foaled horses to be conducted by each

organization organizational licensee conducting a harness

racing meeting for which purse supplements have been

negotiated.

(l) All races held at county fairs and the State Fair which

receive funds from the Illinois Standardbred Breeders Fund

shall be conducted in accordance with the rules of the United

States Trotting Association unless otherwise modified by the

Department of Agriculture.

(m) At all standardbred race meetings held or conducted

under authority of a license granted by the Board, and at all

standardbred races held at county fairs which are approved by

the Department of Agriculture or at the Illinois or DuQuoin

State Fairs, no one shall jog, train, warm up or drive a

standardbred horse unless he or she is wearing a protective

safety helmet, with the chin strap fastened and in place, which

meets the standards and requirements as set forth in the 1984

Standard for Protective Headgear for Use in Harness Racing and

Other Equestrian Sports published by the Snell Memorial

Foundation, or any standards and requirements for headgear the

Illinois Racing Board may approve. Any other standards and

requirements so approved by the Board shall equal or exceed

those published by the Snell Memorial Foundation. Any

equestrian helmet bearing the Snell label shall be deemed to

have met those standards and requirements.

(Source: P.A. 99-756, eff. 8-12-16; 100-777, eff. 8-10-18.)

(230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)

Sec. 31.1. (a) Unless subsection (a-5) applies,

organization Organization licensees collectively shall

contribute annually to charity the sum of $750,000 to

non-profit organizations that provide medical and family,

counseling, and similar services to persons who reside or work

on the backstretch of Illinois racetracks. Unless subsection

(a-5) applies, these These contributions shall be collected as

follows: (i) no later than July 1st of each year the Board

shall assess each organization licensee, except those tracks

located in Madison County, which are not within 100 miles of

each other which tracks shall pay $30,000 annually apiece into

the Board charity fund, that amount which equals $690,000

multiplied by the amount of pari-mutuel wagering handled by the

organization licensee in the year preceding assessment and

divided by the total pari-mutuel wagering handled by all

Illinois organization licensees, except those tracks located

in Madison and Rock Island counties which are not within 100

miles of each other, in the year preceding assessment; (ii)

notice of the assessed contribution shall be mailed to each

organization licensee; (iii) within thirty days of its receipt

of such notice, each organization licensee shall remit the

assessed contribution to the Board. Unless subsection (a-5)

applies, if an organization licensee commences operation of

gaming at its facility pursuant to an organization gaming

license under the Illinois Gambling Act, then the organization

licensee shall contribute an additional $83,000 per year

beginning in the year subsequent to the first year in which the

organization licensee begins receiving funds from gaming

pursuant to an organization gaming license. If an organization

licensee wilfully fails to so remit the contribution, the Board

may revoke its license to conduct horse racing.

(a-5) If (1) an organization licensee that did not operate

live racing in 2017 is awarded racing dates in 2018 or in any

subsequent year and (2) all organization licensees are

operating gaming pursuant to an organization gaming license

under the Illinois Gambling Act, then subsection (a) does not

apply and organization licensees collectively shall contribute

annually to charity the sum of $1,000,000 to non-profit

organizations that provide medical and family, counseling, and

similar services to persons who reside or work on the

backstretch of Illinois racetracks. These contributions shall

be collected as follows: (i) no later than July 1st of each

year the Board shall assess each organization licensee an

amount based on the proportionate amount of live racing days in

the calendar year for which the Board has awarded to the

organization licensee out of the total aggregate number of live

racing days awarded; (ii) notice of the assessed contribution

shall be mailed to each organization licensee; (iii) within 30

days after its receipt of such notice, each organization

licensee shall remit the assessed contribution to the Board. If

an organization licensee willfully fails to so remit the

contribution, the Board may revoke its license to conduct horse

racing.

(b) No later than October 1st of each year, any qualified

charitable organization seeking an allotment of contributed

funds shall submit to the Board an application for those funds,

using the Board's approved form. No later than December 31st of

each year, the Board shall distribute all such amounts

collected that year to such charitable organization

applicants.

(Source: P.A. 87-110.)

(230 ILCS 5/32.1)

Sec. 32.1. Pari-mutuel tax credit; statewide racetrack

real estate equalization.

(a) In order to encourage new investment in Illinois

racetrack facilities and mitigate differing real estate tax

burdens among all racetracks, the licensees affiliated or

associated with each racetrack that has been awarded live

racing dates in the current year shall receive an immediate

pari-mutuel tax credit in an amount equal to the greater of (i)

50% of the amount of the real estate taxes paid in the prior

year attributable to that racetrack, or (ii) the amount by

which the real estate taxes paid in the prior year attributable

to that racetrack exceeds 60% of the average real estate taxes

paid in the prior year for all racetracks awarded live horse

racing meets in the current year.

Each year, regardless of whether the organization licensee

conducted live racing in the year of certification, the Board

shall certify in writing, prior to December 31, the real estate

taxes paid in that year for each racetrack and the amount of

the pari-mutuel tax credit that each organization licensee,

inter-track wagering licensee, and inter-track wagering

location licensee that derives its license from such racetrack

is entitled in the succeeding calendar year. The real estate

taxes considered under this Section for any racetrack shall be

those taxes on the real estate parcels and related facilities

used to conduct a horse race meeting and inter-track wagering

at such racetrack under this Act. In no event shall the amount

of the tax credit under this Section exceed the amount of

pari-mutuel taxes otherwise calculated under this Act. The

amount of the tax credit under this Section shall be retained

by each licensee and shall not be subject to any reallocation

or further distribution under this Act. The Board may

promulgate emergency rules to implement this Section.

(b) If the organization licensee is operating gaming

pursuant to an organization gaming license issued under the

Illinois Gambling Act, except the organization licensee

described in Section 19.5, then, for the 5-year period

beginning on the January 1 of the calendar year immediately

following the calendar year during which an organization

licensee begins conducting gaming operations pursuant to an

organization gaming license issued under the Illinois Gambling

Act, the organization licensee shall make capital

expenditures, in an amount equal to no less than 50% of the tax

credit under this Section, to the improvement and maintenance

of the backstretch, including, but not limited to, backstretch

barns, dormitories, and services for backstretch workers.

Those capital expenditures must be in addition to, and not in

lieu of, the capital expenditures made for backstretch

improvements in calendar year 2015, as reported to the Board in

the organization licensee's application for racing dates and as

certified by the Board. The organization licensee is required

to annually submit the list and amounts of these capital

expenditures to the Board by January 30th of the year following

the expenditure.

(c) If the organization licensee is conducting gaming in

accordance with paragraph (b), then, after the 5-year period

beginning on January 1 of the calendar year immediately

following the calendar year during which an organization

licensee begins conducting gaming operations pursuant to an

organization gaming license issued under the Illinois Gambling

Act, the organization license is ineligible to receive a tax

credit under this Section.

(Source: P.A. 100-201, eff. 8-18-17.)

(230 ILCS 5/34.3 new)

Sec. 34.3. Drug testing. The Illinois Racing Board and the

Department of Agriculture shall jointly establish a program for

the purpose of conducting drug testing of horses at county

fairs and shall adopt any rules necessary for enforcement of

the program. The rules shall include appropriate penalties for

violations.

(230 ILCS 5/36) (from Ch. 8, par. 37-36)

Sec. 36. (a) Whoever administers or conspires to administer

to any horse a hypnotic, narcotic, stimulant, depressant or any

chemical substance which may affect the speed of a horse at any

time in any race where the purse or any part of the purse is

made of money authorized by any Section of this Act, except

those chemical substances permitted by ruling of the Board,

internally, externally or by hypodermic method in a race or

prior thereto, or whoever knowingly enters a horse in any race

within a period of 24 hours after any hypnotic, narcotic,

stimulant, depressant or any other chemical substance which may

affect the speed of a horse at any time, except those chemical

substances permitted by ruling of the Board, has been

administered to such horse either internally or externally or

by hypodermic method for the purpose of increasing or retarding

the speed of such horse shall be guilty of a Class 4 felony.

The Board shall suspend or revoke such violator's license.

(b) The term "hypnotic" as used in this Section includes

all barbituric acid preparations and derivatives.

(c) The term "narcotic" as used in this Section includes

opium and all its alkaloids, salts, preparations and

derivatives, cocaine and all its salts, preparations and

derivatives and substitutes.

(d) The provisions of this Section and the treatment

authorized in this Section apply to horses entered in and

competing in race meetings as defined in Section 3.07 of this

Act and to horses entered in and competing at any county fair.

(Source: P.A. 79-1185.)

(230 ILCS 5/40) (from Ch. 8, par. 37-40)

Sec. 40. (a) The imposition of any fine or penalty provided

in this Act shall not preclude the Board in its rules and

regulations from imposing a fine or penalty for any other

action which, in the Board's discretion, is a detriment or

impediment to horse racing.

(b) The Director of Agriculture or his or her authorized

representative shall impose the following monetary penalties

and hold administrative hearings as required for failure to

submit the following applications, lists, or reports within the

time period, date or manner required by statute or rule or for

removing a foal from Illinois prior to inspection:

(1) late filing of a renewal application for offering

or standing stallion for service:

(A) if an application is submitted no more than 30

days late, $50;

(B) if an application is submitted no more than 45

days late, $150; or

(C) if an application is submitted more than 45

days late, if filing of the application is allowed

under an administrative hearing, $250;

(2) late filing of list or report of mares bred:

(A) if a list or report is submitted no more than

30 days late, $50;

(B) if a list or report is submitted no more than

60 days late, $150; or

(C) if a list or report is submitted more than 60

days late, if filing of the list or report is allowed

under an administrative hearing, $250;

(3) filing an Illinois foaled thoroughbred mare status

report after the statutory deadline as provided in

subsection (k) of Section 30 of this Act December 31:

(A) if a report is submitted no more than 30 days

late, $50;

(B) if a report is submitted no more than 90 days

late, $150;

(C) if a report is submitted no more than 150 days

late, $250; or

(D) if a report is submitted more than 150 days

late, if filing of the report is allowed under an

administrative hearing, $500;

(4) late filing of application for foal eligibility

certificate:

(A) if an application is submitted no more than 30

days late, $50;

(B) if an application is submitted no more than 90

days late, $150;

(C) if an application is submitted no more than 150

days late, $250; or

(D) if an application is submitted more than 150

days late, if filing of the application is allowed

under an administrative hearing, $500;

(5) failure to report the intent to remove a foal from

Illinois prior to inspection, identification and

certification by a Department of Agriculture investigator,

$50; and

(6) if a list or report of mares bred is incomplete,

$50 per mare not included on the list or report.

Any person upon whom monetary penalties are imposed under

this Section 3 times within a 5-year period shall have any

further monetary penalties imposed at double the amounts set

forth above. All monies assessed and collected for violations

relating to thoroughbreds shall be paid into the Illinois

Thoroughbred Breeders Fund. All monies assessed and collected

for violations relating to standardbreds shall be paid into the

Illinois Standardbred Breeders Fund.

(Source: P.A. 99-933, eff. 1-27-17; 100-201, eff. 8-18-17.)

(230 ILCS 5/54.75)

Sec. 54.75. Horse Racing Equity Trust Fund.

(a) There is created a Fund to be known as the Horse Racing

Equity Trust Fund, which is a non-appropriated trust fund held

separate and apart from State moneys. The Fund shall consist of

moneys paid into it by owners licensees under the Illinois

Riverboat Gambling Act for the purposes described in this

Section. The Fund shall be administered by the Board. Moneys in

the Fund shall be distributed as directed and certified by the

Board in accordance with the provisions of subsection (b).

(b) The moneys deposited into the Fund, plus any accrued

interest on those moneys, shall be distributed within 10 days

after those moneys are deposited into the Fund as follows:

(1) Sixty percent of all moneys distributed under this

subsection shall be distributed to organization licensees

to be distributed at their race meetings as purses.

Fifty-seven percent of the amount distributed under this

paragraph (1) shall be distributed for thoroughbred race

meetings and 43% shall be distributed for standardbred race

meetings. Within each breed, moneys shall be allocated to

each organization licensee's purse fund in accordance with

the ratio between the purses generated for that breed by

that licensee during the prior calendar year and the total

purses generated throughout the State for that breed during

the prior calendar year by licensees in the current

calendar year.

(2) The remaining 40% of the moneys distributed under

this subsection (b) shall be distributed as follows:

(A) 11% shall be distributed to any person (or its

successors or assigns) who had operating control of a

racetrack that conducted live racing in 2002 at a

racetrack in a county with at least 230,000 inhabitants

that borders the Mississippi River and is a licensee in

the current year; and

(B) the remaining 89% shall be distributed pro rata

according to the aggregate proportion of total handle

from wagering on live races conducted in Illinois

(irrespective of where the wagers are placed) for

calendar years 2004 and 2005 to any person (or its

successors or assigns) who (i) had majority operating

control of a racing facility at which live racing was

conducted in calendar year 2002, (ii) is a licensee in

the current year, and (iii) is not eligible to receive

moneys under subparagraph (A) of this paragraph (2).

The moneys received by an organization licensee

under this paragraph (2) shall be used by each

organization licensee to improve, maintain, market,

and otherwise operate its racing facilities to conduct

live racing, which shall include backstretch services

and capital improvements related to live racing and the

backstretch. Any organization licensees sharing common

ownership may pool the moneys received and spent at all

racing facilities commonly owned in order to meet these

requirements.

If any person identified in this paragraph (2) becomes

ineligible to receive moneys from the Fund, such amount

shall be redistributed among the remaining persons in

proportion to their percentages otherwise calculated.

(c) The Board shall monitor organization licensees to

ensure that moneys paid to organization licensees under this

Section are distributed by the organization licensees as

provided in subsection (b).

(Source: P.A. 95-1008, eff. 12-15-08.)

(230 ILCS 5/56 new)

Sec. 56. Gaming pursuant to an organization gaming license.

(a) A person, firm, corporation, partnership, or limited

liability company having operating control of a racetrack may

apply to the Gaming Board for an organization gaming license.

An organization gaming license shall authorize its holder to

conduct gaming on the grounds of the racetrack of which the

organization gaming licensee has operating control. Only one

organization gaming license may be awarded for any racetrack. A

holder of an organization gaming license shall be subject to

the Illinois Gambling Act and rules of the Illinois Gaming

Board concerning gaming pursuant to an organization gaming

license issued under the Illinois Gambling Act. If the person,

firm, corporation, or limited liability company having

operating control of a racetrack is found by the Illinois

Gaming Board to be unsuitable for an organization gaming

license under the Illinois Gambling Act and rules of the Gaming

Board, that person, firm, corporation, or limited liability

company shall not be granted an organization gaming license.

Each license shall specify the number of gaming positions that

its holder may operate.

An organization gaming licensee may not permit patrons

under 21 years of age to be present in its organization gaming

facility, but the licensee may accept wagers on live racing and

inter-track wagers at its organization gaming facility.

(b) For purposes of this subsection, "adjusted gross

receipts" means an organization gaming licensee's gross

receipts less winnings paid to wagerers and shall also include

any amounts that would otherwise be deducted pursuant to

subsection (a-9) of Section 13 of the Illinois Gambling Act.

The adjusted gross receipts by an organization gaming licensee

from gaming pursuant to an organization gaming license issued

under the Illinois Gambling Act remaining after the payment of

taxes under Section 13 of the Illinois Gambling Act shall be

distributed as follows:

(1) Amounts shall be paid to the purse account at the

track at which the organization licensee is conducting

racing equal to the following:

12.75% of annual adjusted gross receipts up to and

including $93,000,000;

20% of annual adjusted gross receipts in excess of

$93,000,000 but not exceeding $100,000,000;

26.5% of annual adjusted gross receipts in excess

of $100,000,000 but not exceeding $125,000,000; and

20.5% of annual adjusted gross receipts in excess

of $125,000,000.

If 2 different breeds race at the same racetrack in the

same calendar year, the purse moneys allocated under this

subsection (b) shall be divided pro rata based on live

racing days awarded by the Board to that race track for

each breed. However, the ratio may not exceed 60% for

either breed, except if one breed is awarded fewer than 20

live racing days, in which case the purse moneys allocated

shall be divided pro rata based on live racing days.

(2) The remainder shall be retained by the organization

gaming licensee.

(c) Annually, from the purse account of an organization

licensee racing thoroughbred horses in this State, except for

in Madison County, an amount equal to 12% of the gaming

receipts from gaming pursuant to an organization gaming license

placed into the purse accounts shall be paid to the Illinois

Thoroughbred Breeders Fund and shall be used for owner awards;

a stallion program pursuant to paragraph (3) of subsection (g)

of Section 30 of this Act; and Illinois conceived and foaled

stakes races pursuant to paragraph (2) of subsection (g) of

Section 30 of this Act, as specifically designated by the

horsemen association representing the largest number of owners

and trainers who race at the organization licensee's race

meetings.

Annually, from the purse account of an organization

licensee racing thoroughbred horses in Madison County, an

amount equal to 10% of the gaming receipts from gaming pursuant

to an organization gaming license placed into the purse

accounts shall be paid to the Illinois Thoroughbred Breeders

Fund and shall be used for owner awards; a stallion program

pursuant to paragraph (3) of subsection (g) of Section 30 of

this Act; and Illinois conceived and foaled stakes races

pursuant to paragraph (2) of subsection (g) of Section 30 of

this Act, as specifically designated by the horsemen

association representing the largest number of owners and

trainers who race at the organization licensee's race meetings.

Annually, from the amounts generated for purses from all

sources, including, but not limited to, amounts generated from

wagering conducted by organization licensees, organization

gaming licensees, inter-track wagering licensees, inter-track

wagering locations licensees, and advance deposit wagering

licensees, or an organization licensee to the purse account of

an organization licensee conducting thoroughbred races at a

track in Madison County, an amount equal to 10% of adjusted

gross receipts as defined in subsection (b) of this Section

shall be paid to the horsemen association representing the

largest number of owners and trainers who race at the

organization licensee's race meets, to be used to for

operational expenses and may be also used for after care

programs for retired thoroughbred race horses, backstretch

laundry and kitchen facilities, a health insurance or

retirement program, the Future Farmers of America, and such

other programs.

Annually, from the purse account of organization licensees

conducting thoroughbred races at racetracks in Cook County,

$100,000 shall be paid for division and equal distribution to

the animal sciences department of each Illinois public

university system engaged in equine research and education on

or before the effective date of this amendatory Act of the

101st General Assembly for equine research and education.

(d) Annually, from the purse account of an organization

licensee racing standardbred horses, an amount equal to 15% of

the gaming receipts from gaming pursuant to an organization

gaming license placed into that purse account shall be paid to

the Illinois Standardbred Breeders Fund. Moneys deposited into

the Illinois Standardbred Breeders Fund shall be used for

standardbred racing as authorized in paragraphs 1, 2, 3, 8, and

9 of subsection (g) of Section 31 of this Act and for bonus

awards as authorized under paragraph 6 of subsection (j) of

Section 31 of this Act.

Section 35-55. The Riverboat Gambling Act is amended by

changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,

11.1, 12, 13, 14, 15, 17, 17.1, 18, 18.1, 19, 20, and 24 and by

adding Sections 5.3, 7.7, 7.8, 7.10, 7.11, 7.12, 7.13, 7.14,

and 7.15 as follows:

(230 ILCS 10/1) (from Ch. 120, par. 2401)

Sec. 1. Short title. This Act shall be known and may be

cited as the Illinois Riverboat Gambling Act.

(Source: P.A. 86-1029.)

(230 ILCS 10/2) (from Ch. 120, par. 2402)

Sec. 2. Legislative Intent.

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

of Illinois by assisting economic development, and promoting

Illinois tourism, and by increasing the amount of revenues

available to the State to assist and support education, and to

defray State expenses.

(b) While authorization of riverboat and casino gambling

will enhance investment, beautification, development and

tourism in Illinois, it is recognized that it will do so

successfully only if public confidence and trust in the

credibility and integrity of the gambling operations and the

regulatory process is maintained. Therefore, regulatory

provisions of this Act are designed to strictly regulate the

facilities, persons, associations and practices related to

gambling operations pursuant to the police powers of the State,

including comprehensive law enforcement supervision.

(c) The Illinois Gaming Board established under this Act

should, as soon as possible, inform each applicant for an

owners license of the Board's intent to grant or deny a

license.

(Source: P.A. 93-28, eff. 6-20-03.)

(230 ILCS 10/3) (from Ch. 120, par. 2403)

Sec. 3. Riverboat Gambling Authorized.

(a) Riverboat and casino gambling operations and gaming

operations pursuant to an organization gaming license and the

system of wagering incorporated therein, as defined in this

Act, are hereby authorized to the extent that they are carried

out in accordance with the provisions of this Act.

(b) This Act does not apply to the pari-mutuel system of

wagering used or intended to be used in connection with the

horse-race meetings as authorized under the Illinois Horse

Racing Act of 1975, lottery games authorized under the Illinois

Lottery Law, bingo authorized under the Bingo License and Tax

Act, charitable games authorized under the Charitable Games Act

or pull tabs and jar games conducted under the Illinois Pull

Tabs and Jar Games Act. This Act applies to gaming by an

organization gaming licensee authorized under the Illinois

Horse Racing Act of 1975 to the extent provided in that Act and

in this Act.

(c) Riverboat gambling conducted pursuant to this Act may

be authorized upon any water within the State of Illinois or

any water other than Lake Michigan which constitutes a boundary

of the State of Illinois. Notwithstanding any provision in this

subsection (c) to the contrary, a licensee that receives its

license pursuant to subsection (e-5) of Section 7 may conduct

riverboat gambling on Lake Michigan from a home dock located on

Lake Michigan subject to any limitations contained in Section

7. Notwithstanding any provision in this subsection (c) to the

contrary, a licensee may conduct gambling at its home dock

facility as provided in Sections 7 and 11. A licensee may

conduct riverboat gambling authorized under this Act

regardless of whether it conducts excursion cruises. A licensee

may permit the continuous ingress and egress of passengers for

the purpose of gambling.

(d) Gambling that is conducted in accordance with this Act

using slot machines and video games of chance and other

electronic gambling games as defined in both this Act and the

Illinois Horse Racing Act of 1975 is authorized.

(Source: P.A. 91-40, eff. 6-25-99.)

(230 ILCS 10/4) (from Ch. 120, par. 2404)

Sec. 4. Definitions. As used in this Act:

(a) "Board" means the Illinois Gaming Board.

(b) "Occupational license" means a license issued by the

Board to a person or entity to perform an occupation which the

Board has identified as requiring a license to engage in

riverboat gambling, casino gambling, or gaming pursuant to an

organization gaming license issued under this Act in Illinois.

(c) "Gambling game" includes, but is not limited to,

baccarat, twenty-one, poker, craps, slot machine, video game of

chance, roulette wheel, klondike table, punchboard, faro

layout, keno layout, numbers ticket, push card, jar ticket, or

pull tab which is authorized by the Board as a wagering device

under this Act.

(d) "Riverboat" means a self-propelled excursion boat, a

permanently moored barge, or permanently moored barges that are

permanently fixed together to operate as one vessel, on which

lawful gambling is authorized and licensed as provided in this

Act.

"Slot machine" means any mechanical, electrical, or other

device, contrivance, or machine that is authorized by the Board

as a wagering device under this Act which, upon insertion of a

coin, currency, token, or similar object therein, or upon

payment of any consideration whatsoever, is available to play

or operate, the play or operation of which may deliver or

entitle the person playing or operating the machine to receive

cash, premiums, merchandise, tokens, or anything of value

whatsoever, whether the payoff is made automatically from the

machine or in any other manner whatsoever. A slot machine:

(1) may utilize spinning reels or video displays or

both;

(2) may or may not dispense coins, tickets, or tokens

to winning patrons;

(3) may use an electronic credit system for receiving

wagers and making payouts; and

(4) may simulate a table game.

"Slot machine" does not include table games authorized by

the Board as a wagering device under this Act.

(e) "Managers license" means a license issued by the Board

to a person or entity to manage gambling operations conducted

by the State pursuant to Section 7.3.

(f) "Dock" means the location where a riverboat moors for

the purpose of embarking passengers for and disembarking

passengers from the riverboat.

(g) "Gross receipts" means the total amount of money

exchanged for the purchase of chips, tokens, or electronic

cards by riverboat patrons.

(h) "Adjusted gross receipts" means the gross receipts less

winnings paid to wagerers.

(i) "Cheat" means to alter the selection of criteria which

determine the result of a gambling game or the amount or

frequency of payment in a gambling game.

(j) (Blank).

(k) "Gambling operation" means the conduct of authorized

gambling games authorized under this Act upon a riverboat or in

a casino or authorized under this Act and the Illinois Horse

Racing Act of 1975 at an organization gaming facility.

(l) "License bid" means the lump sum amount of money that

an applicant bids and agrees to pay the State in return for an

owners license that is issued or re-issued on or after July 1,

2003.

"Table game" means a live gaming apparatus upon which

gaming is conducted or that determines an outcome that is the

object of a wager, including, but not limited to, baccarat,

twenty-one, blackjack, poker, craps, roulette wheel, klondike

table, punchboard, faro layout, keno layout, numbers ticket,

push card, jar ticket, pull tab, or other similar games that

are authorized by the Board as a wagering device under this

Act. "Table game" does not include slot machines or video games

of chance.

(m) The terms "minority person", "woman", and "person with

a disability" shall have the same meaning as defined in Section

2 of the Business Enterprise for Minorities, Women, and Persons

with Disabilities Act.

"Casino" means a facility at which lawful gambling is

authorized as provided in this Act.

"Owners license" means a license to conduct riverboat or

casino gambling operations, but does not include an

organization gaming license.

"Licensed owner" means a person who holds an owners

license.

"Organization gaming facility" means that portion of an

organization licensee's racetrack facilities at which gaming

authorized under Section 7.7 is conducted.

"Organization gaming license" means a license issued by the

Illinois Gaming Board under Section 7.7 of this Act authorizing

gaming pursuant to that Section at an organization gaming

facility.

"Organization gaming licensee" means an entity that holds

an organization gaming license.

"Organization licensee" means an entity authorized by the

Illinois Racing Board to conduct pari-mutuel wagering in

accordance with the Illinois Horse Racing Act of 1975. With

respect only to gaming pursuant to an organization gaming

license, "organization licensee" includes the authorization

for gaming created under subsection (a) of Section 56 of the

Illinois Horse Racing Act of 1975.

(Source: P.A. 100-391, eff. 8-25-17.)

(230 ILCS 10/5) (from Ch. 120, par. 2405)

Sec. 5. Gaming Board.

(a) (1) There is hereby established the Illinois Gaming

Board, which shall have the powers and duties specified in this

Act, and all other powers necessary and proper to fully and

effectively execute this Act for the purpose of administering,

regulating, and enforcing the system of riverboat and casino

gambling established by this Act and gaming pursuant to an

organization gaming license issued under this Act. Its

jurisdiction shall extend under this Act to every person,

association, corporation, partnership and trust involved in

riverboat and casino gambling operations and gaming pursuant to

an organization gaming license issued under this Act in the

State of Illinois.

(2) The Board shall consist of 5 members to be appointed by

the Governor with the advice and consent of the Senate, one of

whom shall be designated by the Governor to be chairperson

chairman. Each member shall have a reasonable knowledge of the

practice, procedure and principles of gambling operations.

Each member shall either be a resident of Illinois or shall

certify that he or she will become a resident of Illinois

before taking office.

On and after the effective date of this amendatory Act of

the 101st General Assembly, new appointees to the Board must

include the following:

(A) One member who has received, at a minimum, a

bachelor's degree from an accredited school and at least 10

years of verifiable experience in the fields of

investigation and law enforcement.

(B) One member who is a certified public accountant

with experience in auditing and with knowledge of complex

corporate structures and transactions.

(C) One member who has 5 years' experience as a

principal, senior officer, or director of a company or

business with either material responsibility for the daily

operations and management of the overall company or

business or material responsibility for the policy making

of the company or business.

(D) One member who is an attorney licensed to practice

law in Illinois for at least 5 years.

Notwithstanding any provision of this subsection (a), the

requirements of subparagraphs (A) through (D) of this paragraph

(2) shall not apply to any person reappointed pursuant to

paragraph (3).

No more than 3 members of the Board may be from the same

political party. No Board member shall, within a period of one

year immediately preceding nomination, have been employed or

received compensation or fees for services from a person or

entity, or its parent or affiliate, that has engaged in

business with the Board, a licensee, or a licensee under the

Illinois Horse Racing Act of 1975. Board members must publicly

disclose all prior affiliations with gaming interests,

including any compensation, fees, bonuses, salaries, and other

reimbursement received from a person or entity, or its parent

or affiliate, that has engaged in business with the Board, a

licensee, or a licensee under the Illinois Horse Racing Act of

1975. This disclosure must be made within 30 days after

nomination but prior to confirmation by the Senate and must be

made available to the members of the Senate. At least one

member shall be experienced in law enforcement and criminal

investigation, at least one member shall be a certified public

accountant experienced in accounting and auditing, and at least

one member shall be a lawyer licensed to practice law in

Illinois.

(3) The terms of office of the Board members shall be 3

years, except that the terms of office of the initial Board

members appointed pursuant to this Act will commence from the

effective date of this Act and run as follows: one for a term

ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for

a term ending July 1, 1993. Upon the expiration of the

foregoing terms, the successors of such members shall serve a

term for 3 years and until their successors are appointed and

qualified for like terms. Vacancies in the Board shall be

filled for the unexpired term in like manner as original

appointments. Each member of the Board shall be eligible for

reappointment at the discretion of the Governor with the advice

and consent of the Senate.

(4) Each member of the Board shall receive $300 for each

day the Board meets and for each day the member conducts any

hearing pursuant to this Act. Each member of the Board shall

also be reimbursed for all actual and necessary expenses and

disbursements incurred in the execution of official duties.

(5) No person shall be appointed a member of the Board or

continue to be a member of the Board who is, or whose spouse,

child or parent is, a member of the board of directors of, or a

person financially interested in, any gambling operation

subject to the jurisdiction of this Board, or any race track,

race meeting, racing association or the operations thereof

subject to the jurisdiction of the Illinois Racing Board. No

Board member shall hold any other public office. No person

shall be a member of the Board who is not of good moral

character or who has been convicted of, or is under indictment

for, a felony under the laws of Illinois or any other state, or

the United States.

(5.5) No member of the Board shall engage in any political

activity. For the purposes of this Section, "political" means

any activity in support of or in connection with any campaign

for federal, State, or local elective office or any political

organization, but does not include activities (i) relating to

the support or opposition of any executive, legislative, or

administrative action (as those terms are defined in Section 2

of the Lobbyist Registration Act), (ii) relating to collective

bargaining, or (iii) that are otherwise in furtherance of the

person's official State duties or governmental and public

service functions.

(6) Any member of the Board may be removed by the Governor

for neglect of duty, misfeasance, malfeasance, or nonfeasance

in office or for engaging in any political activity.

(7) Before entering upon the discharge of the duties of his

office, each member of the Board shall take an oath that he

will faithfully execute the duties of his office according to

the laws of the State and the rules and regulations adopted

therewith and shall give bond to the State of Illinois,

approved by the Governor, in the sum of $25,000. Every such

bond, when duly executed and approved, shall be recorded in the

office of the Secretary of State. Whenever the Governor

determines that the bond of any member of the Board has become

or is likely to become invalid or insufficient, he shall

require such member forthwith to renew his bond, which is to be

approved by the Governor. Any member of the Board who fails to

take oath and give bond within 30 days from the date of his

appointment, or who fails to renew his bond within 30 days

after it is demanded by the Governor, shall be guilty of

neglect of duty and may be removed by the Governor. The cost of

any bond given by any member of the Board under this Section

shall be taken to be a part of the necessary expenses of the

Board.

(7.5) For the examination of all mechanical,

electromechanical, or electronic table games, slot machines,

slot accounting systems, sports wagering systems, and other

electronic gaming equipment, and the field inspection of such

systems, games, and machines, for compliance with this Act, the

Board shall may utilize the services of one or more independent

outside testing laboratories that have been accredited in

accordance with ISO/IEC 17025 by an accreditation body that is

a signatory to the International Laboratory Accreditation

Cooperation Mutual Recognition Agreement signifying they by a

national accreditation body and that, in the judgment of the

Board, are qualified to perform such examinations.

Notwithstanding any law to the contrary, the Board shall

consider the licensing of independent outside testing

laboratory applicants in accordance with procedures

established by the Board by rule. The Board shall not withhold

its approval of an independent outside testing laboratory

license applicant that has been accredited as required under

this paragraph (7.5) and is licensed in gaming jurisdictions

comparable to Illinois. Upon the finalization of required

rules, the Board shall license independent testing

laboratories and accept the test reports of any licensed

testing laboratory of the system's, game's, or machine

manufacturer's choice, notwithstanding the existence of

contracts between the Board and any independent testing

laboratory.

(8) The Board shall employ such personnel as may be

necessary to carry out its functions and shall determine the

salaries of all personnel, except those personnel whose

salaries are determined under the terms of a collective

bargaining agreement. No person shall be employed to serve the

Board who is, or whose spouse, parent or child is, an official

of, or has a financial interest in or financial relation with,

any operator engaged in gambling operations within this State

or any organization engaged in conducting horse racing within

this State. For the one year immediately preceding employment,

an employee shall not have been employed or received

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

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

Board, a licensee, or a licensee under the Illinois Horse

Racing Act of 1975. Any employee violating these prohibitions

shall be subject to termination of employment.

(9) An Administrator shall perform any and all duties that

the Board shall assign him. The salary of the Administrator

shall be determined by the Board and, in addition, he shall be

reimbursed for all actual and necessary expenses incurred by

him in discharge of his official duties. The Administrator

shall keep records of all proceedings of the Board and shall

preserve all records, books, documents and other papers

belonging to the Board or entrusted to its care. The

Administrator shall devote his full time to the duties of the

office and shall not hold any other office or employment.

(b) The Board shall have general responsibility for the

implementation of this Act. Its duties include, without

limitation, the following:

(1) To decide promptly and in reasonable order all

license applications. Any party aggrieved by an action of

the Board denying, suspending, revoking, restricting or

refusing to renew a license may request a hearing before

the Board. A request for a hearing must be made to the

Board in writing within 5 days after service of notice of

the action of the Board. Notice of the action of the Board

shall be served either by personal delivery or by certified

mail, postage prepaid, to the aggrieved party. Notice

served by certified mail shall be deemed complete on the

business day following the date of such mailing. The Board

shall conduct any such all requested hearings promptly and

in reasonable order;

(2) To conduct all hearings pertaining to civil

violations of this Act or rules and regulations promulgated

hereunder;

(3) To promulgate such rules and regulations as in its

judgment may be necessary to protect or enhance the

credibility and integrity of gambling operations

authorized by this Act and the regulatory process

hereunder;

(4) To provide for the establishment and collection of

all license and registration fees and taxes imposed by this

Act and the rules and regulations issued pursuant hereto.

All such fees and taxes shall be deposited into the State

Gaming Fund;

(5) To provide for the levy and collection of penalties

and fines for the violation of provisions of this Act and

the rules and regulations promulgated hereunder. All such

fines and penalties shall be deposited into the Education

Assistance Fund, created by Public Act 86-0018, of the

State of Illinois;

(6) To be present through its inspectors and agents any

time gambling operations are conducted on any riverboat, in

any casino, or at any organization gaming facility for the

purpose of certifying the revenue thereof, receiving

complaints from the public, and conducting such other

investigations into the conduct of the gambling games and

the maintenance of the equipment as from time to time the

Board may deem necessary and proper;

(7) To review and rule upon any complaint by a licensee

regarding any investigative procedures of the State which

are unnecessarily disruptive of gambling operations. The

need to inspect and investigate shall be presumed at all

times. The disruption of a licensee's operations shall be

proved by clear and convincing evidence, and establish

that: (A) the procedures had no reasonable law enforcement

purposes, and (B) the procedures were so disruptive as to

unreasonably inhibit gambling operations;

(8) To hold at least one meeting each quarter of the

fiscal year. In addition, special meetings may be called by

the Chairman or any 2 Board members upon 72 hours written

notice to each member. All Board meetings shall be subject

to the Open Meetings Act. Three members of the Board shall

constitute a quorum, and 3 votes shall be required for any

final determination by the Board. The Board shall keep a

complete and accurate record of all its meetings. A

majority of the members of the Board shall constitute a

quorum for the transaction of any business, for the

performance of any duty, or for the exercise of any power

which this Act requires the Board members to transact,

perform or exercise en banc, except that, upon order of the

Board, one of the Board members or an administrative law

judge designated by the Board may conduct any hearing

provided for under this Act or by Board rule and may

recommend findings and decisions to the Board. The Board

member or administrative law judge conducting such hearing

shall have all powers and rights granted to the Board in

this Act. The record made at the time of the hearing shall

be reviewed by the Board, or a majority thereof, and the

findings and decision of the majority of the Board shall

constitute the order of the Board in such case;

(9) To maintain records which are separate and distinct

from the records of any other State board or commission.

Such records shall be available for public inspection and

shall accurately reflect all Board proceedings;

(10) To file a written annual report with the Governor

on or before July 1 each year and such additional reports

as the Governor may request. The annual report shall

include a statement of receipts and disbursements by the

Board, actions taken by the Board, and any additional

information and recommendations which the Board may deem

valuable or which the Governor may request;

(11) (Blank);

(12) (Blank);

(13) To assume responsibility for administration and

enforcement of the Video Gaming Act; and

(13.1) To assume responsibility for the administration

and enforcement of operations at organization gaming

facilities pursuant to this Act and the Illinois Horse

Racing Act of 1975;

(13.2) To assume responsibility for the administration

and enforcement of the Sports Wagering Act; and

(14) To adopt, by rule, a code of conduct governing

Board members and employees that ensure, to the maximum

extent possible, that persons subject to this Code avoid

situations, relationships, or associations that may

represent or lead to a conflict of interest.

Internal controls and changes submitted by licensees must

be reviewed and either approved or denied with cause within 90

days after receipt of submission is deemed final by the

Illinois Gaming Board. In the event an internal control

submission or change does not meet the standards set by the

Board, staff of the Board must provide technical assistance to

the licensee to rectify such deficiencies within 90 days after

the initial submission and the revised submission must be

reviewed and approved or denied with cause within 90 days after

the date the revised submission is deemed final by the Board.

For the purposes of this paragraph, "with cause" means that the

approval of the submission would jeopardize the integrity of

gaming. In the event the Board staff has not acted within the

timeframe, the submission shall be deemed approved.

(c) The Board shall have jurisdiction over and shall

supervise all gambling operations governed by this Act. The

Board shall have all powers necessary and proper to fully and

effectively execute the provisions of this Act, including, but

not limited to, the following:

(1) To investigate applicants and determine the

eligibility of applicants for licenses and to select among

competing applicants the applicants which best serve the

interests of the citizens of Illinois.

(2) To have jurisdiction and supervision over all

riverboat gambling operations authorized under this Act in

this State and all persons in places on riverboats where

gambling operations are conducted.

(3) To promulgate rules and regulations for the purpose

of administering the provisions of this Act and to

prescribe rules, regulations and conditions under which

all riverboat gambling operations subject to this Act in

the State shall be conducted. Such rules and regulations

are to provide for the prevention of practices detrimental

to the public interest and for the best interests of

riverboat gambling, including rules and regulations

regarding the inspection of organization gaming

facilities, casinos, and such riverboats, and the review of

any permits or licenses necessary to operate a riverboat,

casino, or organization gaming facility under any laws or

regulations applicable to riverboats, casinos, or

organization gaming facilities and to impose penalties for

violations thereof.

(4) To enter the office, riverboats, casinos,

organization gaming facilities, and other facilities, or

other places of business of a licensee, where evidence of

the compliance or noncompliance with the provisions of this

Act is likely to be found.

(5) To investigate alleged violations of this Act or

the rules of the Board and to take appropriate disciplinary

action against a licensee or a holder of an occupational

license for a violation, or institute appropriate legal

action for enforcement, or both.

(6) To adopt standards for the licensing of all persons

and entities under this Act, as well as for electronic or

mechanical gambling games, and to establish fees for such

licenses.

(7) To adopt appropriate standards for all

organization gaming facilities, riverboats, casinos, and

other facilities authorized under this Act.

(8) To require that the records, including financial or

other statements of any licensee under this Act, shall be

kept in such manner as prescribed by the Board and that any

such licensee involved in the ownership or management of

gambling operations submit to the Board an annual balance

sheet and profit and loss statement, list of the

stockholders or other persons having a 1% or greater

beneficial interest in the gambling activities of each

licensee, and any other information the Board deems

necessary in order to effectively administer this Act and

all rules, regulations, orders and final decisions

promulgated under this Act.

(9) To conduct hearings, issue subpoenas for the

attendance of witnesses and subpoenas duces tecum for the

production of books, records and other pertinent documents

in accordance with the Illinois Administrative Procedure

Act, and to administer oaths and affirmations to the

witnesses, when, in the judgment of the Board, it is

necessary to administer or enforce this Act or the Board

rules.

(10) To prescribe a form to be used by any licensee

involved in the ownership or management of gambling

operations as an application for employment for their

employees.

(11) To revoke or suspend licenses, as the Board may

see fit and in compliance with applicable laws of the State

regarding administrative procedures, and to review

applications for the renewal of licenses. The Board may

suspend an owners license or an organization gaming

license , without notice or hearing upon a determination

that the safety or health of patrons or employees is

jeopardized by continuing a gambling operation conducted

under that license riverboat's operation. The suspension

may remain in effect until the Board determines that the

cause for suspension has been abated. The Board may revoke

an the owners license or organization gaming license upon a

determination that the licensee owner has not made

satisfactory progress toward abating the hazard.

(12) To eject or exclude or authorize the ejection or

exclusion of, any person from riverboat gambling

facilities where that such person is in violation of this

Act, rules and regulations thereunder, or final orders of

the Board, or where such person's conduct or reputation is

such that his or her presence within the riverboat gambling

facilities may, in the opinion of the Board, call into

question the honesty and integrity of the gambling

operations or interfere with the orderly conduct thereof;

provided that the propriety of such ejection or exclusion

is subject to subsequent hearing by the Board.

(13) To require all licensees of gambling operations to

utilize a cashless wagering system whereby all players'

money is converted to tokens, electronic cards, or chips

which shall be used only for wagering in the gambling

establishment.

(14) (Blank).

(15) To suspend, revoke or restrict licenses, to

require the removal of a licensee or an employee of a

licensee for a violation of this Act or a Board rule or for

engaging in a fraudulent practice, and to impose civil

penalties of up to $5,000 against individuals and up to

$10,000 or an amount equal to the daily gross receipts,

whichever is larger, against licensees for each violation

of any provision of the Act, any rules adopted by the

Board, any order of the Board or any other action which, in

the Board's discretion, is a detriment or impediment to

riverboat gambling operations.

(16) To hire employees to gather information, conduct

investigations and carry out any other tasks contemplated

under this Act.

(17) To establish minimum levels of insurance to be

maintained by licensees.

(18) To authorize a licensee to sell or serve alcoholic

liquors, wine or beer as defined in the Liquor Control Act

of 1934 on board a riverboat or in a casino and to have

exclusive authority to establish the hours for sale and

consumption of alcoholic liquor on board a riverboat or in

a casino, notwithstanding any provision of the Liquor

Control Act of 1934 or any local ordinance, and regardless

of whether the riverboat makes excursions. The

establishment of the hours for sale and consumption of

alcoholic liquor on board a riverboat or in a casino is an

exclusive power and function of the State. A home rule unit

may not establish the hours for sale and consumption of

alcoholic liquor on board a riverboat or in a casino. This

subdivision (18) amendatory Act of 1991 is a denial and

limitation of home rule powers and functions under

subsection (h) of Section 6 of Article VII of the Illinois

Constitution.

(19) After consultation with the U.S. Army Corps of

Engineers, to establish binding emergency orders upon the

concurrence of a majority of the members of the Board

regarding the navigability of water, relative to

excursions, in the event of extreme weather conditions,

acts of God or other extreme circumstances.

(20) To delegate the execution of any of its powers

under this Act for the purpose of administering and

enforcing this Act and the its rules adopted by the Board

and regulations hereunder.

(20.5) To approve any contract entered into on its

behalf.

(20.6) To appoint investigators to conduct

investigations, searches, seizures, arrests, and other

duties imposed under this Act, as deemed necessary by the

Board. These investigators have and may exercise all of the

rights and powers of peace officers, provided that these

powers shall be limited to offenses or violations occurring

or committed in a casino, in an organization gaming

facility, or on a riverboat or dock, as defined in

subsections (d) and (f) of Section 4, or as otherwise

provided by this Act or any other law.

(20.7) To contract with the Department of State Police

for the use of trained and qualified State police officers

and with the Department of Revenue for the use of trained

and qualified Department of Revenue investigators to

conduct investigations, searches, seizures, arrests, and

other duties imposed under this Act and to exercise all of

the rights and powers of peace officers, provided that the

powers of Department of Revenue investigators under this

subdivision (20.7) shall be limited to offenses or

violations occurring or committed in a casino, in an

organization gaming facility, or on a riverboat or dock, as

defined in subsections (d) and (f) of Section 4, or as

otherwise provided by this Act or any other law. In the

event the Department of State Police or the Department of

Revenue is unable to fill contracted police or

investigative positions, the Board may appoint

investigators to fill those positions pursuant to

subdivision (20.6).

(21) To adopt rules concerning the conduct of gaming

pursuant to an organization gaming license issued under

this Act.

(22) To have the same jurisdiction and supervision over

casinos and organization gaming facilities as the Board has

over riverboats, including, but not limited to, the power

to (i) investigate, review, and approve contracts as that

power is applied to riverboats, (ii) adopt rules for

administering the provisions of this Act, (iii) adopt

standards for the licensing of all persons involved with a

casino or organization gaming facility, (iv) investigate

alleged violations of this Act by any person involved with

a casino or organization gaming facility, and (v) require

that records, including financial or other statements of

any casino or organization gaming facility, shall be kept

in such manner as prescribed by the Board.

(23) (21) To take any other action as may be reasonable

or appropriate to enforce this Act and the rules adopted by

the Board and regulations hereunder.

(d) The Board may seek and shall receive the cooperation of

the Department of State Police in conducting background

investigations of applicants and in fulfilling its

responsibilities under this Section. Costs incurred by the

Department of State Police as a result of such cooperation

shall be paid by the Board in conformance with the requirements

of Section 2605-400 of the Department of State Police Law (20

ILCS 2605/2605-400).

(e) The Board must authorize to each investigator and to

any other employee of the Board exercising the powers of a

peace officer a distinct badge that, on its face, (i) clearly

states that the badge is authorized by the Board and (ii)

contains a unique identifying number. No other badge shall be

authorized by the Board.

(Source: P.A. 100-1152, eff. 12-14-18.)

(230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)

Sec. 5.1. Disclosure of records.

(a) Notwithstanding any applicable statutory provision to

the contrary, the Board shall, on written request from any

person, provide information furnished by an applicant or

licensee concerning the applicant or licensee, his products,

services or gambling enterprises and his business holdings, as

follows:

(1) The name, business address and business telephone

number of any applicant or licensee.

(2) An identification of any applicant or licensee

including, if an applicant or licensee is not an

individual, the names and addresses of all stockholders and

directors, if the entity is a corporation; the names and

addresses of all members, if the entity is a limited

liability company; the names and addresses of all partners,

both general and limited, if the entity is a partnership;

and the names and addresses of all beneficiaries, if the

entity is a trust the state of incorporation or

registration, the corporate officers, and the identity of

all shareholders or participants. If an applicant or

licensee has a pending registration statement filed with

the Securities and Exchange Commission, only the names of

those persons or entities holding interest of 5% or more

must be provided.

(3) An identification of any business, including, if

applicable, the state of incorporation or registration, in

which an applicant or licensee or an applicant's or

licensee's spouse or children has an equity interest of

more than 1%. If an applicant or licensee is a corporation,

partnership or other business entity, the applicant or

licensee shall identify any other corporation, partnership

or business entity in which it has an equity interest of 1%

or more, including, if applicable, the state of

incorporation or registration. This information need not

be provided by a corporation, partnership or other business

entity that has a pending registration statement filed with

the Securities and Exchange Commission.

(4) Whether an applicant or licensee has been indicted,

convicted, pleaded guilty or nolo contendere, or forfeited

bail concerning any criminal offense under the laws of any

jurisdiction, either felony or misdemeanor (except for

traffic violations), including the date, the name and

location of the court, arresting agency and prosecuting

agency, the case number, the offense, the disposition and

the location and length of incarceration.

(5) Whether an applicant or licensee has had any

license or certificate issued by a licensing authority in

Illinois or any other jurisdiction denied, restricted,

suspended, revoked or not renewed and a statement

describing the facts and circumstances concerning the

denial, restriction, suspension, revocation or

non-renewal, including the licensing authority, the date

each such action was taken, and the reason for each such

action.

(6) Whether an applicant or licensee has ever filed or

had filed against it a proceeding in bankruptcy or has ever

been involved in any formal process to adjust, defer,

suspend or otherwise work out the payment of any debt

including the date of filing, the name and location of the

court, the case and number of the disposition.

(7) Whether an applicant or licensee has filed, or been

served with a complaint or other notice filed with any

public body, regarding the delinquency in the payment of,

or a dispute over the filings concerning the payment of,

any tax required under federal, State or local law,

including the amount, type of tax, the taxing agency and

time periods involved.

(8) A statement listing the names and titles of all

public officials or officers of any unit of government, and

relatives of said public officials or officers who,

directly or indirectly, own any financial interest in, have

any beneficial interest in, are the creditors of or hold

any debt instrument issued by, or hold or have any interest

in any contractual or service relationship with, an

applicant or licensee.

(9) Whether an applicant or licensee has made, directly

or indirectly, any political contribution, or any loans,

donations or other payments, to any candidate or office

holder, within 5 years from the date of filing the

application, including the amount and the method of

payment.

(10) The name and business telephone number of the

counsel representing an applicant or licensee in matters

before the Board.

(11) A description of any proposed or approved gambling

riverboat gaming operation, including the type of boat,

home dock, or casino or gaming location, expected economic

benefit to the community, anticipated or actual number of

employees, any statement from an applicant or licensee

regarding compliance with federal and State affirmative

action guidelines, projected or actual admissions and

projected or actual adjusted gross gaming receipts.

(12) A description of the product or service to be

supplied by an applicant for a supplier's license.

(b) Notwithstanding any applicable statutory provision to

the contrary, the Board shall, on written request from any

person, also provide the following information:

(1) The amount of the wagering tax and admission tax

paid daily to the State of Illinois by the holder of an

owner's license.

(2) Whenever the Board finds an applicant for an

owner's license unsuitable for licensing, a copy of the

written letter outlining the reasons for the denial.

(3) Whenever the Board has refused to grant leave for

an applicant to withdraw his application, a copy of the

letter outlining the reasons for the refusal.

(c) Subject to the above provisions, the Board shall not

disclose any information which would be barred by:

(1) Section 7 of the Freedom of Information Act; or

(2) The statutes, rules, regulations or

intergovernmental agreements of any jurisdiction.

(d) The Board may assess fees for the copying of

information in accordance with Section 6 of the Freedom of

Information Act.

(Source: P.A. 96-1392, eff. 1-1-11.)

(230 ILCS 10/5.3 new)

Sec. 5.3. Ethical conduct.

(a) Officials and employees of the corporate authority of a

host community must carry out their duties and responsibilities

in such a manner as to promote and preserve public trust and

confidence in the integrity and conduct of gaming.

(b) Officials and employees of the corporate authority of a

host community shall not use or attempt to use his or her

official position to secure or attempt to secure any privilege,

advantage, favor, or influence for himself or herself or

others.

(c) Officials and employees of the corporate authority of a

host community may not have a financial interest, directly or

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

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

entity in any contract or subcontract for the performance of

any work for a riverboat or casino that is located in the host

community. This prohibition shall extend to the holding or

acquisition of an interest in any entity identified by Board

action that, in the Board's judgment, could represent the

potential for or the appearance of a financial interest. The

holding or acquisition of an interest in such entities through

an indirect means, such as through a mutual fund, shall not be

prohibited, except that the Board may identify specific

investments or funds that, in its judgment, are so influenced

by gaming holdings as to represent the potential for or the

appearance of a conflict of interest.

(d) Officials and employees of the corporate authority of a

host community may not accept any gift, gratuity, service,

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

exception of unsolicited items of an incidental nature, from

any person, corporation, or entity doing business with the

riverboat or casino that is located in the host community.

(e) Officials and employees of the corporate authority of a

host community shall not, during the period that the person is

an official or employee of the corporate authority or for a

period of 2 years immediately after leaving such office,

knowingly accept employment or receive compensation or fees for

services from a person or entity, or its parent or affiliate,

that has engaged in business with the riverboat or casino that

is located in the host community that resulted in contracts

with an aggregate value of at least $25,000 or if that official

or employee has made a decision that directly applied to the

person or entity, or its parent or affiliate.

(f) A spouse, child, or parent of an official or employee

of the corporate authority of a host community may not have a

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

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

association, trust, corporation, or other entity in any

contract or subcontract for the performance of any work for a

riverboat or casino in the host community. This prohibition

shall extend to the holding or acquisition of an interest in

any entity identified by Board action that, in the judgment of

the Board, could represent the potential for or the appearance

of a conflict of interest. The holding or acquisition of an

interest in such entities through an indirect means, such as

through a mutual fund, shall not be prohibited, expect that the

Board may identify specific investments or funds that, in its

judgment, are so influenced by gaming holdings as to represent

the potential for or the appearance of a conflict of interest.

(g) A spouse, child, or parent of an official or employee

of the corporate authority of a host community may not accept

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

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

incidental nature, from any person, corporation, or entity

doing business with the riverboat or casino that is located in

the host community.

(h) A spouse, child, or parent of an official or employee

of the corporate authority of a host community may not, during

the period that the person is an official of the corporate

authority or for a period of 2 years immediately after leaving

such office or employment, knowingly accept employment or

receive compensation or fees for services from a person or

entity, or its parent or affiliate, that has engaged in

business with the riverboat or casino that is located in the

host community that resulted in contracts with an aggregate

value of at least $25,000 or if that official or employee has

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

or its parent or affiliate.

(i) Officials and employees of the corporate authority of a

host community shall not attempt, in any way, to influence any

person or entity doing business with the riverboat or casino

that is located in the host community or any officer, agent, or

employee thereof to hire or contract with any person or entity

for any compensated work.

(j) Any communication between an official of the corporate

authority of a host community and any applicant for an owners

license in the host community, or an officer, director, or

employee of a riverboat or casino in the host community,

concerning any matter relating in any way to gaming shall be

disclosed to the Board. Such disclosure shall be in writing by

the official within 30 days after the communication and shall

be filed with the Board. Disclosure must consist of the date of

the communication, the identity and job title of the person

with whom the communication was made, a brief summary of the

communication, the action requested or recommended, all

responses made, the identity and job title of the person making

the response, and any other pertinent information. Public

disclosure of the written summary provided to the Board and the

Gaming Board shall be subject to the exemptions provided under

the Freedom of Information Act.

This subsection (j) shall not apply to communications

regarding traffic, law enforcement, security, environmental

issues, city services, transportation, or other routine

matters concerning the ordinary operations of the riverboat or

casino. For purposes of this subsection (j), "ordinary

operations" means operations relating to the casino or

riverboat facility other than the conduct of gambling

activities, and "routine matters" includes the application

for, issuance of, renewal of, and other processes associated

with municipal permits and licenses.

(k) Any official or employee who violates any provision of

this Section is guilty of a Class 4 felony.

(l) For purposes of this Section, "host community" or "host

municipality" means a unit of local government that contains a

riverboat or casino within its borders.

(230 ILCS 10/6) (from Ch. 120, par. 2406)

Sec. 6. Application for Owners License.

(a) A qualified person may apply to the Board for an owners

license to conduct a riverboat gambling operation as provided

in this Act. The application shall be made on forms provided by

the Board and shall contain such information as the Board

prescribes, including but not limited to the identity of the

riverboat on which such gambling operation is to be conducted,

if applicable, and the exact location where such riverboat or

casino will be located docked, a certification that the

riverboat will be registered under this Act at all times during

which gambling operations are conducted on board, detailed

information regarding the ownership and management of the

applicant, and detailed personal information regarding the

applicant. Any application for an owners license to be

re-issued on or after June 1, 2003 shall also include the

applicant's license bid in a form prescribed by the Board.

Information provided on the application shall be used as a

basis for a thorough background investigation which the Board

shall conduct with respect to each applicant. An incomplete

application shall be cause for denial of a license by the

Board.

(a-5) In addition to any other information required under

this Section, each application for an owners license must

include the following information:

(1) The history and success of the applicant and each

person and entity disclosed under subsection (c) of this

Section in developing tourism facilities ancillary to

gaming, if applicable.

(2) The likelihood that granting a license to the

applicant will lead to the creation of quality, living wage

jobs and permanent, full-time jobs for residents of the

State and residents of the unit of local government that is

designated as the home dock of the proposed facility where

gambling is to be conducted by the applicant.

(3) The projected number of jobs that would be created

if the license is granted and the projected number of new

employees at the proposed facility where gambling is to be

conducted by the applicant.

(4) The record, if any, of the applicant and its

developer in meeting commitments to local agencies,

community-based organizations, and employees at other

locations where the applicant or its developer has

performed similar functions as they would perform if the

applicant were granted a license.

(5) Identification of adverse effects that might be

caused by the proposed facility where gambling is to be

conducted by the applicant, including the costs of meeting

increased demand for public health care, child care, public

transportation, affordable housing, and social services,

and a plan to mitigate those adverse effects.

(6) The record, if any, of the applicant and its

developer regarding compliance with:

(A) federal, state, and local discrimination, wage

and hour, disability, and occupational and

environmental health and safety laws; and

(B) state and local labor relations and employment

laws.

(7) The applicant's record, if any, in dealing with its

employees and their representatives at other locations.

(8) A plan concerning the utilization of

minority-owned and women-owned businesses and concerning

the hiring of minorities and women.

(9) Evidence the applicant used its best efforts to

reach a goal of 25% ownership representation by minority

persons and 5% ownership representation by women.

(b) Applicants shall submit with their application all

documents, resolutions, and letters of support from the

governing body that represents the municipality or county

wherein the licensee will be located dock.

(c) Each applicant shall disclose the identity of every

person or entity , association, trust or corporation having a

greater than 1% direct or indirect pecuniary interest in the

riverboat gambling operation with respect to which the license

is sought. If the disclosed entity is a trust, the application

shall disclose the names and addresses of all the

beneficiaries; if a corporation, the names and addresses of all

stockholders and directors; if a partnership, the names and

addresses of all partners, both general and limited.

(d) An application shall be filed and considered in

accordance with the rules of the Board. Each application shall

be accompanied by a nonrefundable An application fee of

$250,000. In addition, a nonrefundable fee of $50,000 shall be

paid at the time of filing to defray the costs associated with

the background investigation conducted by the Board. If the

costs of the investigation exceed $50,000, the applicant shall

pay the additional amount to the Board within 7 days after

requested by the Board. If the costs of the investigation are

less than $50,000, the applicant shall receive a refund of the

remaining amount. All information, records, interviews,

reports, statements, memoranda or other data supplied to or

used by the Board in the course of its review or investigation

of an application for a license or a renewal under this Act

shall be privileged, strictly confidential and shall be used

only for the purpose of evaluating an applicant for a license

or a renewal. Such information, records, interviews, reports,

statements, memoranda or other data shall not be admissible as

evidence, nor discoverable in any action of any kind in any

court or before any tribunal, board, agency or person, except

for any action deemed necessary by the Board. The application

fee shall be deposited into the State Gaming Fund.

(e) The Board shall charge each applicant a fee set by the

Department of State Police to defray the costs associated with

the search and classification of fingerprints obtained by the

Board with respect to the applicant's application. These fees

shall be paid into the State Police Services Fund. In order to

expedite the application process, the Board may establish rules

allowing applicants to acquire criminal background checks and

financial integrity reviews as part of the initial application

process from a list of vendors approved by the Board.

(f) The licensed owner shall be the person primarily

responsible for the boat or casino itself. Only one riverboat

gambling operation may be authorized by the Board on any

riverboat or in any casino. The applicant must identify the

each riverboat or premises it intends to use and certify that

the riverboat or premises: (1) has the authorized capacity

required in this Act; (2) is accessible to persons with

disabilities; and (3) is fully registered and licensed in

accordance with any applicable laws.

(g) A person who knowingly makes a false statement on an

application is guilty of a Class A misdemeanor.

(Source: P.A. 99-143, eff. 7-27-15.)

(230 ILCS 10/7) (from Ch. 120, par. 2407)

Sec. 7. Owners licenses.

(a) The Board shall issue owners licenses to persons or

entities that , firms or corporations which apply for such

licenses upon payment to the Board of the non-refundable

license fee as provided in subsection (e) or (e-5) set by the

Board, upon payment of a $25,000 license fee for the first year

of operation and a $5,000 license fee for each succeeding year

and upon a determination by the Board that the applicant is

eligible for an owners license pursuant to this Act and the

rules of the Board. From the effective date of this amendatory

Act of the 95th General Assembly until (i) 3 years after the

effective date of this amendatory Act of the 95th General

Assembly, (ii) the date any organization licensee begins to

operate a slot machine or video game of chance under the

Illinois Horse Racing Act of 1975 or this Act, (iii) the date

that payments begin under subsection (c-5) of Section 13 of the

Act, or (iv) the wagering tax imposed under Section 13 of this

Act is increased by law to reflect a tax rate that is at least

as stringent or more stringent than the tax rate contained in

subsection (a-3) of Section 13, or (v) when an owners licensee

holding a license issued pursuant to Section 7.1 of this Act

begins conducting gaming, whichever occurs first, as a

condition of licensure and as an alternative source of payment

for those funds payable under subsection (c-5) of Section 13 of

this the Riverboat Gambling Act, any owners licensee that holds

or receives its owners license on or after the effective date

of this amendatory Act of the 94th General Assembly, other than

an owners licensee operating a riverboat with adjusted gross

receipts in calendar year 2004 of less than $200,000,000, must

pay into the Horse Racing Equity Trust Fund, in addition to any

other payments required under this Act, an amount equal to 3%

of the adjusted gross receipts received by the owners licensee.

The payments required under this Section shall be made by the

owners licensee to the State Treasurer no later than 3:00

o'clock p.m. of the day after the day when the adjusted gross

receipts were received by the owners licensee. A person, firm

or entity corporation is ineligible to receive an owners

license if:

(1) the person has been convicted of a felony under the

laws of this State, any other state, or the United States;

(2) the person has been convicted of any violation of

Article 28 of the Criminal Code of 1961 or the Criminal

Code of 2012, or substantially similar laws of any other

jurisdiction;

(3) the person has submitted an application for a

license under this Act which contains false information;

(4) the person is a member of the Board;

(5) a person defined in (1), (2), (3) or (4) is an

officer, director or managerial employee of the entity firm

or corporation;

(6) the entity firm or corporation employs a person

defined in (1), (2), (3) or (4) who participates in the

management or operation of gambling operations authorized

under this Act;

(7) (blank); or

(8) a license of the person or entity , firm or

corporation issued under this Act, or a license to own or

operate gambling facilities in any other jurisdiction, has

been revoked.

The Board is expressly prohibited from making changes to

the requirement that licensees make payment into the Horse

Racing Equity Trust Fund without the express authority of the

Illinois General Assembly and making any other rule to

implement or interpret this amendatory Act of the 95th General

Assembly. For the purposes of this paragraph, "rules" is given

the meaning given to that term in Section 1-70 of the Illinois

Administrative Procedure Act.

(b) In determining whether to grant an owners license to an

applicant, the Board shall consider:

(1) the character, reputation, experience and

financial integrity of the applicants and of any other or

separate person that either:

(A) controls, directly or indirectly, such

applicant, or

(B) is controlled, directly or indirectly, by such

applicant or by a person which controls, directly or

indirectly, such applicant;

(2) the facilities or proposed facilities for the

conduct of riverboat gambling;

(3) the highest prospective total revenue to be derived

by the State from the conduct of riverboat gambling;

(4) the extent to which the ownership of the applicant

reflects the diversity of the State by including minority

persons, women, and persons with a disability and the good

faith affirmative action plan of each applicant to recruit,

train and upgrade minority persons, women, and persons with

a disability in all employment classifications; the Board

shall further consider granting an owners license and

giving preference to an applicant under this Section to

applicants in which minority persons and women hold

ownership interest of at least 16% and 4%, respectively.

(4.5) the extent to which the ownership of the

applicant includes veterans of service in the armed forces

of the United States, and the good faith affirmative action

plan of each applicant to recruit, train, and upgrade

veterans of service in the armed forces of the United

States in all employment classifications;

(5) the financial ability of the applicant to purchase

and maintain adequate liability and casualty insurance;

(6) whether the applicant has adequate capitalization

to provide and maintain, for the duration of a license, a

riverboat or casino;

(7) the extent to which the applicant exceeds or meets

other standards for the issuance of an owners license which

the Board may adopt by rule; and

(8) the The amount of the applicant's license bid; .

(9) the extent to which the applicant or the proposed

host municipality plans to enter into revenue sharing

agreements with communities other than the host

municipality; and

(10) the extent to which the ownership of an applicant

includes the most qualified number of minority persons,

women, and persons with a disability.

(c) Each owners license shall specify the place where the

casino riverboats shall operate or the riverboat shall operate

and dock.

(d) Each applicant shall submit with his application, on

forms provided by the Board, 2 sets of his fingerprints.

(e) In addition to any licenses authorized under subsection

(e-5) of this Section, the The Board may issue up to 10

licenses authorizing the holders of such licenses to own

riverboats. In the application for an owners license, the

applicant shall state the dock at which the riverboat is based

and the water on which the riverboat will be located. The Board

shall issue 5 licenses to become effective not earlier than

January 1, 1991. Three of such licenses shall authorize

riverboat gambling on the Mississippi River, or, with approval

by the municipality in which the riverboat was docked on August

7, 2003 and with Board approval, be authorized to relocate to a

new location, in a municipality that (1) borders on the

Mississippi River or is within 5 miles of the city limits of a

municipality that borders on the Mississippi River and (2), on

August 7, 2003, had a riverboat conducting riverboat gambling

operations pursuant to a license issued under this Act; one of

which shall authorize riverboat gambling from a home dock in

the city of East St. Louis; and one of which shall authorize

riverboat gambling from a home dock in the City of Alton. One

other license shall authorize riverboat gambling on the

Illinois River in the City of East Peoria or, with Board

approval, shall authorize land-based gambling operations

anywhere within the corporate limits of the City of Peoria

south of Marshall County. The Board shall issue one additional

license to become effective not earlier than March 1, 1992,

which shall authorize riverboat gambling on the Des Plaines

River in Will County. The Board may issue 4 additional licenses

to become effective not earlier than March 1, 1992. In

determining the water upon which riverboats will operate, the

Board shall consider the economic benefit which riverboat

gambling confers on the State, and shall seek to assure that

all regions of the State share in the economic benefits of

riverboat gambling.

In granting all licenses, the Board may give favorable

consideration to economically depressed areas of the State, to

applicants presenting plans which provide for significant

economic development over a large geographic area, and to

applicants who currently operate non-gambling riverboats in

Illinois. The Board shall review all applications for owners

licenses, and shall inform each applicant of the Board's

decision. The Board may grant an owners license to an applicant

that has not submitted the highest license bid, but if it does

not select the highest bidder, the Board shall issue a written

decision explaining why another applicant was selected and

identifying the factors set forth in this Section that favored

the winning bidder. The fee for issuance or renewal of a

license pursuant to this subsection (e) shall be $250,000.

(e-5) In addition to licenses authorized under subsection

(e) of this Section:

(1) the Board may issue one owners license authorizing

the conduct of casino gambling in the City of Chicago;

(2) the Board may issue one owners license authorizing

the conduct of riverboat gambling in the City of Danville;

(3) the Board may issue one owners license authorizing

the conduct of riverboat gambling located in the City of

Waukegan;

(4) the Board may issue one owners license authorizing

the conduct of riverboat gambling in the City of Rockford;

(5) the Board may issue one owners license authorizing

the conduct of riverboat gambling in a municipality that is

wholly or partially located in one of the following

townships of Cook County: Bloom, Bremen, Calumet, Rich,

Thornton, or Worth Township; and

(6) the Board may issue one owners license authorizing

the conduct of riverboat gambling in the unincorporated

area of Williamson County adjacent to the Big Muddy River.

Except for the license authorized under paragraph (1), each

application for a license pursuant to this subsection (e-5)

shall be submitted to the Board no later than 120 days after

the effective date of this amendatory Act of the 101st General

Assembly. All applications for a license under this subsection

(e-5) shall include the nonrefundable application fee and the

nonrefundable background investigation fee as provided in

subsection (d) of Section 6 of this Act. In the event that an

applicant submits an application for a license pursuant to this

subsection (e-5) prior to the effective date of this amendatory

Act of the 101st General Assembly, such applicant shall submit

the nonrefundable application fee and background investigation

fee as provided in subsection (d) of Section 6 of this Act no

later than 6 months after the effective date of this amendatory

Act of the 101st General Assembly.

The Board shall consider issuing a license pursuant to

paragraphs (1) through (6) of this subsection only after the

corporate authority of the municipality or the county board of

the county in which the riverboat or casino shall be located

has certified to the Board the following:

(i) that the applicant has negotiated with the

corporate authority or county board in good faith;

(ii) that the applicant and the corporate authority or

county board have mutually agreed on the permanent location

of the riverboat or casino;

(iii) that the applicant and the corporate authority or

county board have mutually agreed on the temporary location

of the riverboat or casino;

(iv) that the applicant and the corporate authority or

the county board have mutually agreed on the percentage of

revenues that will be shared with the municipality or

county, if any;

(v) that the applicant and the corporate authority or

county board have mutually agreed on any zoning, licensing,

public health, or other issues that are within the

jurisdiction of the municipality or county; and

(vi) that the corporate authority or county board has

passed a resolution or ordinance in support of the

riverboat or casino in the municipality or county.

At least 7 days before the corporate authority of a

municipality or county board of the county submits a

certification to the Board concerning items (i) through (vi) of

this subsection, it shall hold a public hearing to discuss

items (i) through (vi), as well as any other details concerning

the proposed riverboat or casino in the municipality or county.

The corporate authority or county board must subsequently

memorialize the details concerning the proposed riverboat or

casino in a resolution that must be adopted by a majority of

the corporate authority or county board before any

certification is sent to the Board. The Board shall not alter,

amend, change, or otherwise interfere with any agreement

between the applicant and the corporate authority of the

municipality or county board of the county regarding the

location of any temporary or permanent facility.

In addition, within 10 days after the effective date of

this amendatory Act of the 101st General Assembly, the Board,

with consent and at the expense of the City of Chicago, shall

select and retain the services of a nationally recognized

casino gaming feasibility consultant. Within 45 days after the

effective date of this amendatory Act of the 101st General

Assembly, the consultant shall prepare and deliver to the Board

a study concerning the feasibility of, and the ability to

finance, a casino in the City of Chicago. The feasibility study

shall be delivered to the Mayor of the City of Chicago, the

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

House of Representatives. Ninety days after receipt of the

feasibility study, the Board shall make a determination, based

on the results of the feasibility study, whether to recommend

to the General Assembly that the terms of the license under

paragraph (1) of this subsection (e-5) should be modified. The

Board may begin accepting applications for the owners license

under paragraph (1) of this subsection (e-5) upon the

determination to issue such an owners license.

In addition, prior to the Board issuing the owners license

authorized under paragraph (4) of subsection (e-5), an impact

study shall be completed to determine what location in the city

will provide the greater impact to the region, including the

creation of jobs and the generation of tax revenue.

(e-10) The licenses authorized under subsection (e-5) of

this Section shall be issued within 12 months after the date

the license application is submitted. If the Board does not

issue the licenses within that time period, then the Board

shall give a written explanation to the applicant as to why it

has not reached a determination and when it reasonably expects

to make a determination. The fee for the issuance or renewal of

a license issued pursuant to this subsection (e-10) shall be

$250,000. Additionally, a licensee located outside of Cook

County shall pay a minimum initial fee of $17,500 per gaming

position, and a licensee located in Cook County shall pay a

minimum initial fee of $30,000 per gaming position. The initial

fees payable under this subsection (e-10) shall be deposited

into the Rebuild Illinois Projects Fund.

(e-15) Each licensee of a license authorized under

subsection (e-5) of this Section shall make a reconciliation

payment 3 years after the date the licensee begins operating in

an amount equal to 75% of the adjusted gross receipts for the

most lucrative 12-month period of operations, minus an amount

equal to the initial payment per gaming position paid by the

specific licensee. Each licensee shall pay a $15,000,000

reconciliation fee upon issuance of an owners license. If this

calculation results in a negative amount, then the licensee is

not entitled to any reimbursement of fees previously paid. This

reconciliation payment may be made in installments over a

period of no more than 2 years, subject to Board approval. Any

installment payments shall include an annual market interest

rate as determined by the Board. All payments by licensees

under this subsection (e-15) shall be deposited into the

Rebuild Illinois Projects Fund.

(e-20) In addition to any other revocation powers granted

to the Board under this Act, the Board may revoke the owners

license of a licensee which fails to begin conducting gambling

within 15 months of receipt of the Board's approval of the

application if the Board determines that license revocation is

in the best interests of the State.

(f) The first 10 owners licenses issued under this Act

shall permit the holder to own up to 2 riverboats and equipment

thereon for a period of 3 years after the effective date of the

license. Holders of the first 10 owners licenses must pay the

annual license fee for each of the 3 years during which they

are authorized to own riverboats.

(g) Upon the termination, expiration, or revocation of each

of the first 10 licenses, which shall be issued for a 3 year

period, all licenses are renewable annually upon payment of the

fee and a determination by the Board that the licensee

continues to meet all of the requirements of this Act and the

Board's rules. However, for licenses renewed on or after May 1,

1998, renewal shall be for a period of 4 years, unless the

Board sets a shorter period.

(h) An owners license, except for an owners license issued

under subsection (e-5) of this Section, shall entitle the

licensee to own up to 2 riverboats.

An owners licensee of a casino or riverboat that is located

in the City of Chicago pursuant to paragraph (1) of subsection

(e-5) of this Section shall limit the number of gaming

positions to 4,000 for such owner. An owners licensee

authorized under subsection (e) or paragraph (2), (3), (4), or

(5) of subsection (e-5) of this Section shall limit the number

of gaming positions to 2,000 for any such owners license. An

owners licensee authorized under paragraph (6) of subsection

(e-5) of this Section A licensee shall limit the number of

gaming positions gambling participants to 1,200 for any such

owner. The initial fee for each gaming position obtained on or

after the effective date of this amendatory Act of the 101st

General Assembly shall be a minimum of $17,500 for licensees

not located in Cook County and a minimum of $30,000 for

licensees located in Cook County, in addition to the

reconciliation payment, as set forth in subsection (e-15) of

this Section owners license. The fees under this subsection (h)

shall be deposited into the Rebuild Illinois Projects Fund. The

fees under this subsection (h) that are paid by an owners

licensee authorized under subsection (e) shall be paid by July

1, 2020.

Each owners licensee under subsection (e) of this Section

shall reserve its gaming positions within 30 days after the

effective date of this amendatory Act of the 101st General

Assembly. The Board may grant an extension to this 30-day

period, provided that the owners licensee submits a written

request and explanation as to why it is unable to reserve its

positions within the 30-day period.

Each owners licensee under subsection (e-5) of this

Section shall reserve its gaming positions within 30 days after

issuance of its owners license. The Board may grant an

extension to this 30-day period, provided that the owners

licensee submits a written request and explanation as to why it

is unable to reserve its positions within the 30-day period.

A licensee may operate both of its riverboats concurrently,

provided that the total number of gaming positions gambling

participants on both riverboats does not exceed the limit

established pursuant to this subsection 1,200. Riverboats

licensed to operate on the Mississippi River and the Illinois

River south of Marshall County shall have an authorized

capacity of at least 500 persons. Any other riverboat licensed

under this Act shall have an authorized capacity of at least

400 persons.

(h-5) An owners licensee who conducted gambling operations

prior to January 1, 2012 and obtains positions pursuant to this

amendatory Act of the 101st General Assembly shall make a

reconciliation payment 3 years after any additional gaming

positions begin operating in an amount equal to 75% of the

owners licensee's average gross receipts for the most lucrative

12-month period of operations minus an amount equal to the

initial fee that the owners licensee paid per additional gaming

position. For purposes of this subsection (h-5), "average gross

receipts" means (i) the increase in adjusted gross receipts for

the most lucrative 12-month period of operations over the

adjusted gross receipts for 2019, multiplied by (ii) the

percentage derived by dividing the number of additional gaming

positions that an owners licensee had obtained by the total

number of gaming positions operated by the owners licensee. If

this calculation results in a negative amount, then the owners

licensee is not entitled to any reimbursement of fees

previously paid. This reconciliation payment may be made in

installments over a period of no more than 2 years, subject to

Board approval. Any installment payments shall include an

annual market interest rate as determined by the Board. These

reconciliation payments shall be deposited into the Rebuild

Illinois Projects Fund.

(i) A licensed owner is authorized to apply to the Board

for and, if approved therefor, to receive all licenses from the

Board necessary for the operation of a riverboat or casino,

including a liquor license, a license to prepare and serve food

for human consumption, and other necessary licenses. All use,

occupation and excise taxes which apply to the sale of food and

beverages in this State and all taxes imposed on the sale or

use of tangible personal property apply to such sales aboard

the riverboat or in the casino.

(j) The Board may issue or re-issue a license authorizing a

riverboat to dock in a municipality or approve a relocation

under Section 11.2 only if, prior to the issuance or

re-issuance of the license or approval, the governing body of

the municipality in which the riverboat will dock has by a

majority vote approved the docking of riverboats in the

municipality. The Board may issue or re-issue a license

authorizing a riverboat to dock in areas of a county outside

any municipality or approve a relocation under Section 11.2

only if, prior to the issuance or re-issuance of the license or

approval, the governing body of the county has by a majority

vote approved of the docking of riverboats within such areas.

(k) An owners licensee may conduct land-based gambling

operations upon approval by the Board and payment of a fee of

$250,000, which shall be deposited into the State Gaming Fund.

(l) An owners licensee may conduct gaming at a temporary

facility pending the construction of a permanent facility or

the remodeling or relocation of an existing facility to

accommodate gaming participants for up to 24 months after the

temporary facility begins to conduct gaming. Upon request by an

owners licensee and upon a showing of good cause by the owners

licensee, the Board shall extend the period during which the

licensee may conduct gaming at a temporary facility by up to 12

months. The Board shall make rules concerning the conduct of

gaming from temporary facilities.

(Source: P.A. 100-391, eff. 8-25-17; 100-1152, eff. 12-14-18.)

(230 ILCS 10/7.3)

Sec. 7.3. State conduct of gambling operations.

(a) If, after reviewing each application for a re-issued

license, the Board determines that the highest prospective

total revenue to the State would be derived from State conduct

of the gambling operation in lieu of re-issuing the license,

the Board shall inform each applicant of its decision. The

Board shall thereafter have the authority, without obtaining an

owners license, to conduct casino or riverboat gambling

operations as previously authorized by the terminated,

expired, revoked, or nonrenewed license through a licensed

manager selected pursuant to an open and competitive bidding

process as set forth in Section 7.5 and as provided in Section

7.4.

(b) The Board may locate any casino or riverboat on which a

gambling operation is conducted by the State in any home dock

or other location authorized by Section 3(c) upon receipt of

approval from a majority vote of the governing body of the

municipality or county, as the case may be, in which the

riverboat will dock.

(c) The Board shall have jurisdiction over and shall

supervise all gambling operations conducted by the State

provided for in this Act and shall have all powers necessary

and proper to fully and effectively execute the provisions of

this Act relating to gambling operations conducted by the

State.

(d) The maximum number of owners licenses authorized under

Section 7 7(e) shall be reduced by one for each instance in

which the Board authorizes the State to conduct a casino or

riverboat gambling operation under subsection (a) in lieu of

re-issuing a license to an applicant under Section 7.1.

(Source: P.A. 93-28, eff. 6-20-03.)

(230 ILCS 10/7.5)

Sec. 7.5. Competitive Bidding. When the Board determines

that (i) it will re-issue an owners license pursuant to an open

and competitive bidding process, as set forth in Section 7.1,

(ii) or that it will issue a managers license pursuant to an

open and competitive bidding process, as set forth in Section

7.4, or (iii) it will issue an owners license pursuant to an

open and competitive bidding process, as set forth in Section

7.12, the open and competitive bidding process shall adhere to

the following procedures:

(1) The Board shall make applications for owners and

managers licenses available to the public and allow a

reasonable time for applicants to submit applications to the

Board.

(2) During the filing period for owners or managers license

applications, the Board may retain the services of an

investment banking firm to assist the Board in conducting the

open and competitive bidding process.

(3) After receiving all of the bid proposals, the Board

shall open all of the proposals in a public forum and disclose

the prospective owners or managers names, venture partners, if

any, and, in the case of applicants for owners licenses, the

locations of the proposed development sites.

(4) The Board shall summarize the terms of the proposals

and may make this summary available to the public.

(5) The Board shall evaluate the proposals within a

reasonable time and select no more than 3 final applicants to

make presentations of their proposals to the Board.

(6) The final applicants shall make their presentations to

the Board on the same day during an open session of the Board.

(7) As soon as practicable after the public presentations

by the final applicants, the Board, in its discretion, may

conduct further negotiations among the 3 final applicants.

During such negotiations, each final applicant may increase its

license bid or otherwise enhance its bid proposal. At the

conclusion of such negotiations, the Board shall select the

winning proposal. In the case of negotiations for an owners

license, the Board may, at the conclusion of such negotiations,

make the determination allowed under Section 7.3(a).

(8) Upon selection of a winning bid, the Board shall

evaluate the winning bid within a reasonable period of time for

licensee suitability in accordance with all applicable

statutory and regulatory criteria.

(9) If the winning bidder is unable or otherwise fails to

consummate the transaction, (including if the Board determines

that the winning bidder does not satisfy the suitability

requirements), the Board may, on the same criteria, select from

the remaining bidders or make the determination allowed under

Section 7.3(a).

(Source: P.A. 93-28, eff. 6-20-03.)

(230 ILCS 10/7.7 new)

Sec. 7.7. Organization gaming licenses.

(a) The Illinois Gaming Board shall award one organization

gaming license to each person or entity having operating

control of a racetrack that applies under Section 56 of the

Illinois Horse Racing Act of 1975, subject to the application

and eligibility requirements of this Section. Within 60 days

after the effective date of this amendatory Act of the 101st

General Assembly, a person or entity having operating control

of a racetrack may submit an application for an organization

gaming license. The application shall be made on such forms as

provided by the Board and shall contain such information as the

Board prescribes, including, but not limited to, the identity

of any racetrack at which gaming will be conducted pursuant to

an organization gaming license, detailed information regarding

the ownership and management of the applicant, and detailed

personal information regarding the applicant. The application

shall specify the number of gaming positions the applicant

intends to use and the place where the organization gaming

facility will operate. A person who knowingly makes a false

statement on an application is guilty of a Class A misdemeanor.

Each applicant shall disclose the identity of every person

or entity having a direct or indirect pecuniary interest

greater than 1% in any racetrack with respect to which the

license is sought. If the disclosed entity is a corporation,

the applicant shall disclose the names and addresses of all

stockholders and directors. If the disclosed entity is a

limited liability company, the applicant shall disclose the

names and addresses of all members and managers. If the

disclosed entity is a partnership, the applicant shall disclose

the names and addresses of all partners, both general and

limited. If the disclosed entity is a trust, the applicant

shall disclose the names and addresses of all beneficiaries.

An application shall be filed and considered in accordance

with the rules of the Board. Each application for an

organization gaming license shall include a nonrefundable

application fee of $250,000. In addition, a nonrefundable fee

of $50,000 shall be paid at the time of filing to defray the

costs associated with background investigations conducted by

the Board. If the costs of the background investigation exceed

$50,000, the applicant shall pay the additional amount to the

Board within 7 days after a request by the Board. If the costs

of the investigation are less than $50,000, the applicant shall

receive a refund of the remaining amount. All information,

records, interviews, reports, statements, memoranda, or other

data supplied to or used by the Board in the course of this

review or investigation of an applicant for an organization

gaming license under this Act shall be privileged and strictly

confidential and shall be used only for the purpose of

evaluating an applicant for an organization gaming license or a

renewal. Such information, records, interviews, reports,

statements, memoranda, or other data shall not be admissible as

evidence nor discoverable in any action of any kind in any

court or before any tribunal, board, agency or person, except

for any action deemed necessary by the Board. The application

fee shall be deposited into the State Gaming Fund.

Each applicant shall submit with his or her application, on

forms provided by the Board, a set of his or her fingerprints.

The Board shall charge each applicant a fee set by the

Department of State Police to defray the costs associated with

the search and classification of fingerprints obtained by the

Board with respect to the applicant's application. This fee

shall be paid into the State Police Services Fund.

(b) The Board shall determine within 120 days after

receiving an application for an organization gaming license

whether to grant an organization gaming license to the

applicant. If the Board does not make a determination within

that time period, then the Board shall give a written

explanation to the applicant as to why it has not reached a

determination and when it reasonably expects to make a

determination.

The organization gaming licensee shall purchase up to the

amount of gaming positions authorized under this Act within 120

days after receiving its organization gaming license. If an

organization gaming licensee is prepared to purchase the gaming

positions, but is temporarily prohibited from doing so by order

of a court of competent jurisdiction or the Board, then the

120-day period is tolled until a resolution is reached.

An organization gaming license shall authorize its holder

to conduct gaming under this Act at its racetracks on the same

days of the year and hours of the day that owners licenses are

allowed to operate under approval of the Board.

An organization gaming license and any renewal of an

organization gaming license shall authorize gaming pursuant to

this Section for a period of 4 years. The fee for the issuance

or renewal of an organization gaming license shall be $250,000.

All payments by licensees under this subsection (b) shall

be deposited into the Rebuild Illinois Projects Fund.

(c) To be eligible to conduct gaming under this Section, a

person or entity having operating control of a racetrack must

(i) obtain an organization gaming license, (ii) hold an

organization license under the Illinois Horse Racing Act of

1975, (iii) hold an inter-track wagering license, (iv) pay an

initial fee of $30,000 per gaming position from organization

gaming licensees where gaming is conducted in Cook County and,

except as provided in subsection (c-5), $17,500 for

organization gaming licensees where gaming is conducted

outside of Cook County before beginning to conduct gaming plus

make the reconciliation payment required under subsection (k),

(v) conduct live racing in accordance with subsections (e-1),

(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act

of 1975, (vi) meet the requirements of subsection (a) of

Section 56 of the Illinois Horse Racing Act of 1975, (vii) for

organization licensees conducting standardbred race meetings,

keep backstretch barns and dormitories open and operational

year-round unless a lesser schedule is mutually agreed to by

the organization licensee and the horsemen association racing

at that organization licensee's race meeting, (viii) for

organization licensees conducting thoroughbred race meetings,

the organization licensee must maintain accident medical

expense liability insurance coverage of $1,000,000 for

jockeys, and (ix) meet all other requirements of this Act that

apply to owners licensees.

An organization gaming licensee may enter into a joint

venture with a licensed owner to own, manage, conduct, or

otherwise operate the organization gaming licensee's

organization gaming facilities, unless the organization gaming

licensee has a parent company or other affiliated company that

is, directly or indirectly, wholly owned by a parent company

that is also licensed to conduct organization gaming, casino

gaming, or their equivalent in another state.

All payments by licensees under this subsection (c) shall

be deposited into the Rebuild Illinois Projects Fund.

(c-5) A person or entity having operating control of a

racetrack located in Madison County shall only pay the initial

fees specified in subsection (c) for 540 of the gaming

positions authorized under the license.

(d) A person or entity is ineligible to receive an

organization gaming license if:

(1) the person or entity has been convicted of a felony

under the laws of this State, any other state, or the

United States, including a conviction under the Racketeer

Influenced and Corrupt Organizations Act;

(2) the person or entity has been convicted of any

violation of Article 28 of the Criminal Code of 2012, or

substantially similar laws of any other jurisdiction;

(3) the person or entity has submitted an application

for a license under this Act that contains false

information;

(4) the person is a member of the Board;

(5) a person defined in (1), (2), (3), or (4) of this

subsection (d) is an officer, director, or managerial

employee of the entity;

(6) the person or entity employs a person defined in

(1), (2), (3), or (4) of this subsection (d) who

participates in the management or operation of gambling

operations authorized under this Act; or

(7) a license of the person or entity issued under this

Act or a license to own or operate gambling facilities in

any other jurisdiction has been revoked.

(e) The Board may approve gaming positions pursuant to an

organization gaming license statewide as provided in this

Section. The authority to operate gaming positions under this

Section shall be allocated as follows: up to 1,200 gaming

positions for any organization gaming licensee in Cook County

and up to 900 gaming positions for any organization gaming

licensee outside of Cook County.

(f) Each applicant for an organization gaming license shall

specify in its application for licensure the number of gaming

positions it will operate, up to the applicable limitation set

forth in subsection (e) of this Section. Any unreserved gaming

positions that are not specified shall be forfeited and

retained by the Board. For the purposes of this subsection (f),

an organization gaming licensee that did not conduct live

racing in 2010 and is located within 3 miles of the Mississippi

River may reserve up to 900 positions and shall not be

penalized under this Section for not operating those positions

until it meets the requirements of subsection (e) of this

Section, but such licensee shall not request unreserved gaming

positions under this subsection (f) until its 900 positions are

all operational.

Thereafter, the Board shall publish the number of

unreserved gaming positions and shall accept requests for

additional positions from any organization gaming licensee

that initially reserved all of the positions that were offered.

The Board shall allocate expeditiously the unreserved gaming

positions to requesting organization gaming licensees in a

manner that maximizes revenue to the State. The Board may

allocate any such unused gaming positions pursuant to an open

and competitive bidding process, as provided under Section 7.5

of this Act. This process shall continue until all unreserved

gaming positions have been purchased. All positions obtained

pursuant to this process and all positions the organization

gaming licensee specified it would operate in its application

must be in operation within 18 months after they were obtained

or the organization gaming licensee forfeits the right to

operate those positions, but is not entitled to a refund of any

fees paid. The Board may, after holding a public hearing, grant

extensions so long as the organization gaming licensee is

working in good faith to make the positions operational. The

extension may be for a period of 6 months. If, after the period

of the extension, the organization gaming licensee has not made

the positions operational, then another public hearing must be

held by the Board before it may grant another extension.

Unreserved gaming positions retained from and allocated to

organization gaming licensees by the Board pursuant to this

subsection (f) shall not be allocated to owners licensees under

this Act.

For the purpose of this subsection (f), the unreserved

gaming positions for each organization gaming licensee shall be

the applicable limitation set forth in subsection (e) of this

Section, less the number of reserved gaming positions by such

organization gaming licensee, and the total unreserved gaming

positions shall be the aggregate of the unreserved gaming

positions for all organization gaming licensees.

(g) An organization gaming licensee is authorized to

conduct the following at a racetrack:

(1) slot machine gambling;

(2) video game of chance gambling;

(3) gambling with electronic gambling games as defined

in this Act or defined by the Illinois Gaming Board; and

(4) table games.

(h) Subject to the approval of the Illinois Gaming Board,

an organization gaming licensee may make modification or

additions to any existing buildings and structures to comply

with the requirements of this Act. The Illinois Gaming Board

shall make its decision after consulting with the Illinois

Racing Board. In no case, however, shall the Illinois Gaming

Board approve any modification or addition that alters the

grounds of the organization licensee such that the act of live

racing is an ancillary activity to gaming authorized under this

Section. Gaming authorized under this Section may take place in

existing structures where inter-track wagering is conducted at

the racetrack or a facility within 300 yards of the racetrack

in accordance with the provisions of this Act and the Illinois

Horse Racing Act of 1975.

(i) An organization gaming licensee may conduct gaming at a

temporary facility pending the construction of a permanent

facility or the remodeling or relocation of an existing

facility to accommodate gaming participants for up to 24 months

after the temporary facility begins to conduct gaming

authorized under this Section. Upon request by an organization

gaming licensee and upon a showing of good cause by the

organization gaming licensee, the Board shall extend the period

during which the licensee may conduct gaming authorized under

this Section at a temporary facility by up to 12 months. The

Board shall make rules concerning the conduct of gaming

authorized under this Section from temporary facilities.

The gaming authorized under this Section may take place in

existing structures where inter-track wagering is conducted at

the racetrack or a facility within 300 yards of the racetrack

in accordance with the provisions of this Act and the Illinois

Horse Racing Act of 1975.

(i-5) Under no circumstances shall an organization gaming

licensee conduct gaming at any State or county fair.

(j) The Illinois Gaming Board must adopt emergency rules in

accordance with Section 5-45 of the Illinois Administrative

Procedure Act as necessary to ensure compliance with the

provisions of this amendatory Act of the 101st General Assembly

concerning the conduct of gaming by an organization gaming

licensee. The adoption of emergency rules authorized by this

subsection (j) shall be deemed to be necessary for the public

interest, safety, and welfare.

(k) Each organization gaming licensee who obtains gaming

positions must make a reconciliation payment 3 years after the

date the organization gaming licensee begins operating the

positions in an amount equal to 75% of the difference between

its adjusted gross receipts from gaming authorized under this

Section and amounts paid to its purse accounts pursuant to item

(1) of subsection (b) of Section 56 of the Illinois Horse

Racing Act of 1975 for the 12-month period for which such

difference was the largest, minus an amount equal to the

initial per position fee paid by the organization gaming

licensee. If this calculation results in a negative amount,

then the organization gaming licensee is not entitled to any

reimbursement of fees previously paid. This reconciliation

payment may be made in installments over a period of no more

than 2 years, subject to Board approval. Any installment

payments shall include an annual market interest rate as

determined by the Board.

All payments by licensees under this subsection (k) shall

be deposited into the Rebuild Illinois Projects Fund.

(l) As soon as practical after a request is made by the

Illinois Gaming Board, to minimize duplicate submissions by the

applicant, the Illinois Racing Board must provide information

on an applicant for an organization gaming license to the

Illinois Gaming Board.

(230 ILCS 10/7.8 new)

Sec. 7.8. Home rule. The regulation and licensing of

organization gaming licensees and gaming conducted pursuant to

an organization gaming license are exclusive powers and

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

license such gaming or organization gaming licensees. This

Section is a denial and limitation of home rule powers and

functions under subsection (h) of Section 6 of Article VII of

the Illinois Constitution.

(230 ILCS 10/7.10 new)

Sec. 7.10. Diversity program.

(a) Each owners licensee, organization gaming licensee,

and suppliers licensee shall establish and maintain a diversity

program to ensure non-discrimination in the award and

administration of contracts. The programs shall establish

goals of awarding not less than 25% of the annual dollar value

of all contracts, purchase orders, or other agreements to

minority-owned businesses and 5% of the annual dollar value of

all contracts to women-owned businesses.

(b) Each owners licensee, organization gaming licensee,

and suppliers licensee shall establish and maintain a diversity

program designed to promote equal opportunity for employment.

The program shall establish hiring goals as the Board and each

licensee determines appropriate. The Board shall monitor the

progress of the gaming licensee's progress with respect to the

program's goals.

(c) No later than May 31 of each year, each licensee shall

report to the Board (1) the number of respective employees and

the number of its respective employees who have designated

themselves as members of a minority group and gender and (2)

the total goals achieved under subsection (a) of this Section

as a percentage of the total contracts awarded by the license.

In addition, all licensees shall submit a report with respect

to the minority-owned and women-owned businesses program

created in this Section to the Board.

(d) When considering whether to re-issue or renew a license

to an owners licensee, organization gaming licensee, or

suppliers licensee, the Board shall take into account the

licensee's success in complying with the provisions of this

Section. If an owners licensee, organization gaming licensee,

or suppliers licensee has not satisfied the goals contained in

this Section, the Board shall require a written explanation as

to why the licensee is not in compliance and shall require the

licensee to file multi-year metrics designed to achieve

compliance with the provisions by the next renewal period,

consistent with State and federal law.

(230 ILCS 10/7.11 new)

Sec. 7.11. Annual report on diversity.

(a) Each licensee that receives a license under Sections 7,

7.1, and 7.7 shall execute and file a report with the Board no

later than December 31 of each year that shall contain, but not

be limited to, the following information:

(i) a good faith affirmative action plan to recruit,

train, and upgrade minority persons, women, and persons

with a disability in all employment classifications;

(ii) the total dollar amount of contracts that were

awarded to businesses owned by minority persons, women, and

persons with a disability;

(iii) the total number of businesses owned by minority

persons, women, and persons with a disability that were

utilized by the licensee;

(iv) the utilization of businesses owned by minority

persons, women, and persons with disabilities during the

preceding year; and

(v) the outreach efforts used by the licensee to

attract investors and businesses consisting of minority

persons, women, and persons with a disability.

(b) The Board shall forward a copy of each licensee's

annual reports to the General Assembly no later than February 1

of each year. The reports to the General Assembly shall be

filed with the Clerk of the House of Representatives and the

Secretary of the Senate in electronic form only, in the manner

that the Clerk and the Secretary shall direct.

(230 ILCS 10/7.12 new)

Sec. 7.12. Issuance of new owners licenses.

(a) Owners licenses newly authorized pursuant to this

amendatory Act of the 101st General Assembly may be issued by

the Board to a qualified applicant pursuant to an open and

competitive bidding process, as set forth in Section 7.5, and

subject to the maximum number of authorized licenses set forth

in subsection (e-5) of Section 7 of this Act.

(b) To be a qualified applicant, a person or entity may not

be ineligible to receive an owners license under subsection (a)

of Section 7 of this Act and must submit an application for an

owners license that complies with Section 6 of this Act.

(c) In determining whether to grant an owners license to an

applicant, the Board shall consider all of the factors set

forth in subsections (b) and (e-10) of Section 7 of this Act,

as well as the amount of the applicant's license bid. The Board

may grant the owners license to an applicant that has not

submitted the highest license bid, but if it does not select

the highest bidder, the Board shall issue a written decision

explaining why another applicant was selected and identifying

the factors set forth in subsections (b) and (e-10) of Section

7 of this Act that favored the winning bidder.

(230 ILCS 10/7.13 new)

Sec. 7.13. Environmental standards. All permanent

casinos, riverboats, and organization gaming facilities shall

consist of buildings that are certified as meeting the U.S.

Green Building Council's Leadership in Energy and

Environmental Design standards. The provisions of this Section

apply to a holder of an owners license or organization gaming

license that (i) begins operations on or after January 1, 2019

or (ii) relocates its facilities on or after the effective date

of this amendatory Act of the 101st General Assembly.

(230 ILCS 10/7.14 new)

Sec. 7.14. Chicago Casino Advisory Committee. An Advisory

Committee is established to monitor, review, and report on (1)

the utilization of minority-owned business enterprises and

women-owned business enterprises by the owners licensee, (2)

employment of women, and (3) employment of minorities with

regard to the development and construction of the casino as

authorized under paragraph (1) of subsection (e-5) of Section 7

of the Illinois Gambling Act. The owners licensee under

paragraph (1) of subsection (e-5) of Section 7 of the Illinois

Gambling Act shall work with the Advisory Committee in

accumulating necessary information for the Advisory Committee

to submit reports, as necessary, to the General Assembly and to

the City of Chicago.

The Advisory Committee shall consist of 9 members as

provided in this Section. Five members shall be selected by the

Governor and 4 members shall be selected by the Mayor of the

City of Chicago. The Governor and the Mayor of the City of

Chicago shall each appoint at least one current member of the

General Assembly. The Advisory Committee shall meet

periodically and shall report the information to the Mayor of

the City of Chicago and to the General Assembly by December

31st of every year.

The Advisory Committee shall be dissolved on the date that

casino gambling operations are first conducted at a permanent

facility under the license authorized under paragraph (1) of

subsection (e-5) Section 7 of the Illinois Gambling Act. For

the purposes of this Section, the terms "woman" and "minority

person" have the meanings provided in Section 2 of the Business

Enterprise for Minorities, Women, and Persons with

Disabilities Act.

(230 ILCS 10/7.15 new)

Sec. 7.15. Limitations on gaming at Chicago airports. The

Chicago casino may conduct gaming operations in an airport

under the administration or control of the Chicago Department

of Aviation. Gaming operations may be conducted pursuant to

this Section so long as: (i) gaming operations are conducted in

a secured area that is beyond the Transportation Security

Administration security checkpoints and only available to

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

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

operations are limited to slot machines, as defined in Section

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

of gaming positions operating in the City of Chicago at the

airports and at the temporary and permanent casino facility

does not exceed the maximum number of gaming positions

authorized pursuant to subsection (h) of Section 7 of the

Illinois Gambling Act. Gaming operations at an airport are

subject to all applicable laws and rules that apply to any

other gaming facility under the Illinois Gambling Act.

(230 ILCS 10/8) (from Ch. 120, par. 2408)

Sec. 8. Suppliers licenses.

(a) The Board may issue a suppliers license to such

persons, firms or corporations which apply therefor upon the

payment of a non-refundable application fee set by the Board,

upon a determination by the Board that the applicant is

eligible for a suppliers license and upon payment of a $5,000

annual license fee.

(b) The holder of a suppliers license is authorized to sell

or lease, and to contract to sell or lease, gambling equipment

and supplies to any licensee involved in the ownership or

management of gambling operations.

(c) Gambling supplies and equipment may not be distributed

unless supplies and equipment conform to standards adopted by

rules of the Board.

(d) A person, firm or corporation is ineligible to receive

a suppliers license if:

(1) the person has been convicted of a felony under the

laws of this State, any other state, or the United States;

(2) the person has been convicted of any violation of

Article 28 of the Criminal Code of 1961 or the Criminal

Code of 2012, or substantially similar laws of any other

jurisdiction;

(3) the person has submitted an application for a

license under this Act which contains false information;

(4) the person is a member of the Board;

(5) the entity firm or corporation is one in which a

person defined in (1), (2), (3) or (4), is an officer,

director or managerial employee;

(6) the firm or corporation employs a person who

participates in the management or operation of riverboat

gambling authorized under this Act;

(7) the license of the person, firm or corporation

issued under this Act, or a license to own or operate

gambling facilities in any other jurisdiction, has been

revoked.

(e) Any person that supplies any equipment, devices, or

supplies to a licensed riverboat gambling operation must first

obtain a suppliers license. A supplier shall furnish to the

Board a list of all equipment, devices and supplies offered for

sale or lease in connection with gambling games authorized

under this Act. A supplier shall keep books and records for the

furnishing of equipment, devices and supplies to gambling

operations separate and distinct from any other business that

the supplier might operate. A supplier shall file a quarterly

return with the Board listing all sales and leases. A supplier

shall permanently affix its name or a distinctive logo or other

mark or design element identifying the manufacturer or supplier

to all its equipment, devices, and supplies, except gaming

chips without a value impressed, engraved, or imprinted on it,

for gambling operations. The Board may waive this requirement

for any specific product or products if it determines that the

requirement is not necessary to protect the integrity of the

game. Items purchased from a licensed supplier may continue to

be used even though the supplier subsequently changes its name,

distinctive logo, or other mark or design element; undergoes a

change in ownership; or ceases to be licensed as a supplier for

any reason. Any supplier's equipment, devices or supplies which

are used by any person in an unauthorized gambling operation

shall be forfeited to the State. A holder of an owners license

or an organization gaming license A licensed owner may own its

own equipment, devices and supplies. Each holder of an owners

license or an organization gaming license under the Act shall

file an annual report listing its inventories of gambling

equipment, devices and supplies.

(f) Any person who knowingly makes a false statement on an

application is guilty of a Class A misdemeanor.

(g) Any gambling equipment, devices and supplies provided

by any licensed supplier may either be repaired on the

riverboat, in the casino, or at the organization gaming

facility or removed from the riverboat, casino, or organization

gaming facility to a an on-shore facility owned by the holder

of an owners license, organization gaming license, or suppliers

license for repair.

(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;

98-756, eff. 7-16-14.)

(230 ILCS 10/9) (from Ch. 120, par. 2409)

Sec. 9. Occupational licenses.

(a) The Board may issue an occupational license to an

applicant upon the payment of a non-refundable fee set by the

Board, upon a determination by the Board that the applicant is

eligible for an occupational license and upon payment of an

annual license fee in an amount to be established. To be

eligible for an occupational license, an applicant must:

(1) be at least 21 years of age if the applicant will

perform any function involved in gaming by patrons. Any

applicant seeking an occupational license for a non-gaming

function shall be at least 18 years of age;

(2) not have been convicted of a felony offense, a

violation of Article 28 of the Criminal Code of 1961 or the

Criminal Code of 2012, or a similar statute of any other

jurisdiction;

(2.5) not have been convicted of a crime, other than a

crime described in item (2) of this subsection (a),

involving dishonesty or moral turpitude, except that the

Board may, in its discretion, issue an occupational license

to a person who has been convicted of a crime described in

this item (2.5) more than 10 years prior to his or her

application and has not subsequently been convicted of any

other crime;

(3) have demonstrated a level of skill or knowledge

which the Board determines to be necessary in order to

operate gambling aboard a riverboat, in a casino, or at an

organization gaming facility; and

(4) have met standards for the holding of an

occupational license as adopted by rules of the Board. Such

rules shall provide that any person or entity seeking an

occupational license to manage gambling operations under

this Act hereunder shall be subject to background inquiries

and further requirements similar to those required of

applicants for an owners license. Furthermore, such rules

shall provide that each such entity shall be permitted to

manage gambling operations for only one licensed owner.

(b) Each application for an occupational license shall be

on forms prescribed by the Board and shall contain all

information required by the Board. The applicant shall set

forth in the application: whether he has been issued prior

gambling related licenses; whether he has been licensed in any

other state under any other name, and, if so, such name and his

age; and whether or not a permit or license issued to him in

any other state has been suspended, restricted or revoked, and,

if so, for what period of time.

(c) Each applicant shall submit with his application, on

forms provided by the Board, 2 sets of his fingerprints. The

Board shall charge each applicant a fee set by the Department

of State Police to defray the costs associated with the search

and classification of fingerprints obtained by the Board with

respect to the applicant's application. These fees shall be

paid into the State Police Services Fund.

(d) The Board may in its discretion refuse an occupational

license to any person: (1) who is unqualified to perform the

duties required of such applicant; (2) who fails to disclose or

states falsely any information called for in the application;

(3) who has been found guilty of a violation of this Act or

whose prior gambling related license or application therefor

has been suspended, restricted, revoked or denied for just

cause in any other state; or (4) for any other just cause.

(e) The Board may suspend, revoke or restrict any

occupational licensee: (1) for violation of any provision of

this Act; (2) for violation of any of the rules and regulations

of the Board; (3) for any cause which, if known to the Board,

would have disqualified the applicant from receiving such

license; or (4) for default in the payment of any obligation or

debt due to the State of Illinois; or (5) for any other just

cause.

(f) A person who knowingly makes a false statement on an

application is guilty of a Class A misdemeanor.

(g) Any license issued pursuant to this Section shall be

valid for a period of one year from the date of issuance.

(h) Nothing in this Act shall be interpreted to prohibit a

licensed owner or organization gaming licensee from entering

into an agreement with a public community college or a school

approved under the Private Business and Vocational Schools Act

of 2012 for the training of any occupational licensee. Any

training offered by such a school shall be in accordance with a

written agreement between the licensed owner or organization

gaming licensee and the school.

(i) Any training provided for occupational licensees may be

conducted either at the site of the gambling facility on the

riverboat or at a school with which a licensed owner or

organization gaming licensee has entered into an agreement

pursuant to subsection (h).

(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;

97-1150, eff. 1-25-13.)

(230 ILCS 10/11) (from Ch. 120, par. 2411)

Sec. 11. Conduct of gambling. Gambling may be conducted by

licensed owners or licensed managers on behalf of the State

aboard riverboats. Gambling may be conducted by organization

gaming licensees at organization gaming facilities. Gambling

authorized under this Section is , subject to the following

standards:

(1) A licensee may conduct riverboat gambling

authorized under this Act regardless of whether it conducts

excursion cruises. A licensee may permit the continuous

ingress and egress of patrons passengers on a riverboat not

used for excursion cruises for the purpose of gambling.

Excursion cruises shall not exceed 4 hours for a round

trip. However, the Board may grant express approval for an

extended cruise on a case-by-case basis.

(1.5) An owners licensee may conduct gambling

operations authorized under this Act 24 hours a day.

(2) (Blank).

(3) Minimum and maximum wagers on games shall be set by

the licensee.

(4) Agents of the Board and the Department of State

Police may board and inspect any riverboat, enter and

inspect any portion of a casino, or enter and inspect any

portion of an organization gaming facility at any time for

the purpose of determining whether this Act is being

complied with. Every riverboat, if under way and being

hailed by a law enforcement officer or agent of the Board,

must stop immediately and lay to.

(5) Employees of the Board shall have the right to be

present on the riverboat or in the casino or on adjacent

facilities under the control of the licensee and at the

organization gaming facility under the control of the

organization gaming licensee.

(6) Gambling equipment and supplies customarily used

in conducting riverboat gambling must be purchased or

leased only from suppliers licensed for such purpose under

this Act. The Board may approve the transfer, sale, or

lease of gambling equipment and supplies by a licensed

owner from or to an affiliate of the licensed owner as long

as the gambling equipment and supplies were initially

acquired from a supplier licensed in Illinois.

(7) Persons licensed under this Act shall permit no

form of wagering on gambling games except as permitted by

this Act.

(8) Wagers may be received only from a person present

on a licensed riverboat, in a casino, or at an organization

gaming facility. No person present on a licensed riverboat,

in a casino, or at an organization gaming facility shall

place or attempt to place a wager on behalf of another

person who is not present on the riverboat, in a casino, or

at the organization gaming facility.

(9) Wagering, including gaming authorized under

Section 7.7, shall not be conducted with money or other

negotiable currency.

(10) A person under age 21 shall not be permitted on an

area of a riverboat or casino where gambling is being

conducted or at an organization gaming facility where

gambling is being conducted, except for a person at least

18 years of age who is an employee of the riverboat or

casino gambling operation or gaming operation. No employee

under age 21 shall perform any function involved in

gambling by the patrons. No person under age 21 shall be

permitted to make a wager under this Act, and any winnings

that are a result of a wager by a person under age 21,

whether or not paid by a licensee, shall be treated as

winnings for the privilege tax purposes, confiscated, and

forfeited to the State and deposited into the Education

Assistance Fund.

(11) Gambling excursion cruises are permitted only

when the waterway for which the riverboat is licensed is

navigable, as determined by the Board in consultation with

the U.S. Army Corps of Engineers. This paragraph (11) does

not limit the ability of a licensee to conduct gambling

authorized under this Act when gambling excursion cruises

are not permitted.

(12) All tickets tokens, chips, or electronic cards

used to make wagers must be purchased (i) from a licensed

owner or manager, in the case of a riverboat, either aboard

a riverboat or at an onshore facility which has been

approved by the Board and which is located where the

riverboat docks, (ii) in the case of a casino, from a

licensed owner at the casino, or (iii) from an organization

gaming licensee at the organization gaming facility. The

tickets tokens, chips, or electronic cards may be purchased

by means of an agreement under which the owner or manager

extends credit to the patron. Such tickets tokens, chips,

or electronic cards may be used while aboard the riverboat,

in the casino, or at the organization gaming facility only

for the purpose of making wagers on gambling games.

(13) Notwithstanding any other Section of this Act, in

addition to the other licenses authorized under this Act,

the Board may issue special event licenses allowing persons

who are not otherwise licensed to conduct riverboat

gambling to conduct such gambling on a specified date or

series of dates. Riverboat gambling under such a license

may take place on a riverboat not normally used for

riverboat gambling. The Board shall establish standards,

fees and fines for, and limitations upon, such licenses,

which may differ from the standards, fees, fines and

limitations otherwise applicable under this Act. All such

fees shall be deposited into the State Gaming Fund. All

such fines shall be deposited into the Education Assistance

Fund, created by Public Act 86-0018, of the State of

Illinois.

(14) In addition to the above, gambling must be

conducted in accordance with all rules adopted by the

Board.

(Source: P.A. 96-1392, eff. 1-1-11.)

(230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)

Sec. 11.1. Collection of amounts owing under credit

agreements. Notwithstanding any applicable statutory provision

to the contrary, a licensed owner, licensed or manager, or

organization gaming licensee who extends credit to a riverboat

gambling patron pursuant to paragraph (12) of Section 11

Section 11 (a) (12) of this Act is expressly authorized to

institute a cause of action to collect any amounts due and

owing under the extension of credit, as well as the licensed

owner's, licensed or manager's, or organization gaming

licensee's costs, expenses and reasonable attorney's fees

incurred in collection.

(Source: P.A. 93-28, eff. 6-20-03.)

(230 ILCS 10/12) (from Ch. 120, par. 2412)

Sec. 12. Admission tax; fees.

(a) A tax is hereby imposed upon admissions to riverboat

and casino gambling facilities riverboats operated by licensed

owners authorized pursuant to this Act. Until July 1, 2002, the

rate is $2 per person admitted. From July 1, 2002 until July 1,

2003, the rate is $3 per person admitted. From July 1, 2003

until August 23, 2005 (the effective date of Public Act

94-673), for a licensee that admitted 1,000,000 persons or

fewer in the previous calendar year, the rate is $3 per person

admitted; for a licensee that admitted more than 1,000,000 but

no more than 2,300,000 persons in the previous calendar year,

the rate is $4 per person admitted; and for a licensee that

admitted more than 2,300,000 persons in the previous calendar

year, the rate is $5 per person admitted. Beginning on August

23, 2005 (the effective date of Public Act 94-673), for a

licensee that admitted 1,000,000 persons or fewer in calendar

year 2004, the rate is $2 per person admitted, and for all

other licensees, including licensees that were not conducting

gambling operations in 2004, the rate is $3 per person

admitted. This admission tax is imposed upon the licensed owner

conducting gambling.

(1) The admission tax shall be paid for each admission,

except that a person who exits a riverboat gambling

facility and reenters that riverboat gambling facility

within the same gaming day shall be subject only to the

initial admission tax.

(2) (Blank).

(3) The riverboat licensee may issue tax-free passes to

actual and necessary officials and employees of the

licensee or other persons actually working on the

riverboat.

(4) The number and issuance of tax-free passes is

subject to the rules of the Board, and a list of all

persons to whom the tax-free passes are issued shall be

filed with the Board.

(a-5) A fee is hereby imposed upon admissions operated by

licensed managers on behalf of the State pursuant to Section

7.3 at the rates provided in this subsection (a-5). For a

licensee that admitted 1,000,000 persons or fewer in the

previous calendar year, the rate is $3 per person admitted; for

a licensee that admitted more than 1,000,000 but no more than

2,300,000 persons in the previous calendar year, the rate is $4

per person admitted; and for a licensee that admitted more than

2,300,000 persons in the previous calendar year, the rate is $5

per person admitted.

(1) The admission fee shall be paid for each admission.

(2) (Blank).

(3) The licensed manager may issue fee-free passes to

actual and necessary officials and employees of the manager

or other persons actually working on the riverboat.

(4) The number and issuance of fee-free passes is

subject to the rules of the Board, and a list of all

persons to whom the fee-free passes are issued shall be

filed with the Board.

(b) Except as provided in subsection (b-5), from From the

tax imposed under subsection (a) and the fee imposed under

subsection (a-5), a municipality shall receive from the State

$1 for each person embarking on a riverboat docked within the

municipality or entering a casino located within the

municipality, and a county shall receive $1 for each person

entering a casino or embarking on a riverboat docked within the

county but outside the boundaries of any municipality. The

municipality's or county's share shall be collected by the

Board on behalf of the State and remitted quarterly by the

State, subject to appropriation, to the treasurer of the unit

of local government for deposit in the general fund.

(b-5) From the tax imposed under subsection (a) and the fee

imposed under subsection (a-5), $1 for each person embarking on

a riverboat designated in paragraph (4) of subsection (e-5) of

Section 7 shall be divided as follows: $0.70 to the City of

Rockford, $0.05 to the City of Loves Park, $0.05 to the Village

of Machesney Park, and $0.20 to Winnebago County.

The municipality's or county's share shall be collected by

the Board on behalf of the State and remitted monthly by the

State, subject to appropriation, to the treasurer of the unit

of local government for deposit in the general fund.

(b-10) From the tax imposed under subsection (a) and the

fee imposed under subsection (a-5), $1 for each person

embarking on a riverboat or entering a casino designated in

paragraph (1) of subsection (e-5) of Section 7 shall be divided

as follows: $0.70 to the City of Chicago, $0.15 to the Village

of Maywood, and $0.15 to the Village of Summit.

The municipality's or county's share shall be collected by

the Board on behalf of the State and remitted monthly by the

State, subject to appropriation, to the treasurer of the unit

of local government for deposit in the general fund.

(b-15) From the tax imposed under subsection (a) and the

fee imposed under subsection (a-5), $1 for each person

embarking on a riverboat or entering a casino designated in

paragraph (2) of subsection (e-5) of Section 7 shall be divided

as follows: $0.70 to the City of Danville and $0.30 to

Vermilion County.

The municipality's or county's share shall be collected by

the Board on behalf of the State and remitted monthly by the

State, subject to appropriation, to the treasurer of the unit

of local government for deposit in the general fund.

(c) The licensed owner shall pay the entire admission tax

to the Board and the licensed manager shall pay the entire

admission fee to the Board. Such payments shall be made daily.

Accompanying each payment shall be a return on forms provided

by the Board which shall include other information regarding

admissions as the Board may require. Failure to submit either

the payment or the return within the specified time may result

in suspension or revocation of the owners or managers license.

(c-5) A tax is imposed on admissions to organization gaming

facilities at the rate of $3 per person admitted by an

organization gaming licensee. The tax is imposed upon the

organization gaming licensee.

(1) The admission tax shall be paid for each admission,

except that a person who exits an organization gaming

facility and reenters that organization gaming facility

within the same gaming day, as the term "gaming day" is

defined by the Board by rule, shall be subject only to the

initial admission tax. The Board shall establish, by rule,

a procedure to determine whether a person admitted to an

organization gaming facility has paid the admission tax.

(2) An organization gaming licensee may issue tax-free

passes to actual and necessary officials and employees of

the licensee and other persons associated with its gaming

operations.

(3) The number and issuance of tax-free passes is

subject to the rules of the Board, and a list of all

persons to whom the tax-free passes are issued shall be

filed with the Board.

(4) The organization gaming licensee shall pay the

entire admission tax to the Board.

Such payments shall be made daily. Accompanying each

payment shall be a return on forms provided by the Board, which

shall include other information regarding admission as the

Board may require. Failure to submit either the payment or the

return within the specified time may result in suspension or

revocation of the organization gaming license.

From the tax imposed under this subsection (c-5), a

municipality other than the Village of Stickney or the City of

Collinsville in which an organization gaming facility is

located, or if the organization gaming facility is not located

within a municipality, then the county in which the

organization gaming facility is located, except as otherwise

provided in this Section, shall receive, subject to

appropriation, $1 for each person who enters the organization

gaming facility. For each admission to the organization gaming

facility in excess of 1,500,000 in a year, from the tax imposed

under this subsection (c-5), the county in which the

organization gaming facility is located shall receive, subject

to appropriation, $0.30, which shall be in addition to any

other moneys paid to the county under this Section.

From the tax imposed under this subsection (c-5) on an

organization gaming facility located in the Village of

Stickney, $1 for each person who enters the organization gaming

facility shall be distributed as follows, subject to

appropriation: $0.24 to the Village of Stickney, $0.49 to the

Town of Cicero, $0.05 to the City of Berwyn, and $0.17 to the

Stickney Public Health District, and $0.05 to the City of

Bridgeview.

From the tax imposed under this subsection (c-5) on an

organization gaming facility located in the City of

Collinsville, the following shall each receive 10 cents for

each person who enters the organization gaming facility,

subject to appropriation: the Village of Alorton; the Village

of Washington Park; State Park Place; the Village of Fairmont

City; the City of Centreville; the Village of Brooklyn; the

City of Venice; the City of Madison; the Village of Caseyville;

and the Village of Pontoon Beach.

On the 25th day of each month, all amounts remaining after

payments required under this subsection (c-5) have been made

shall be transferred into the Capital Projects Fund.

(d) The Board shall administer and collect the admission

tax imposed by this Section, to the extent practicable, in a

manner consistent with the provisions of Sections 4, 5, 5a, 5b,

5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the

Retailers' Occupation Tax Act and Section 3-7 of the Uniform

Penalty and Interest Act.

(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)

(230 ILCS 10/13) (from Ch. 120, par. 2413)

Sec. 13. Wagering tax; rate; distribution.

(a) Until January 1, 1998, a tax is imposed on the adjusted

gross receipts received from gambling games authorized under

this Act at the rate of 20%.

(a-1) From January 1, 1998 until July 1, 2002, a privilege

tax is imposed on persons engaged in the business of conducting

riverboat gambling operations, based on the adjusted gross

receipts received by a licensed owner from gambling games

authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

20% of annual adjusted gross receipts in excess of

$25,000,000 but not exceeding $50,000,000;

25% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;

30% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000;

35% of annual adjusted gross receipts in excess of

$100,000,000.

(a-2) From July 1, 2002 until July 1, 2003, a privilege tax

is imposed on persons engaged in the business of conducting

riverboat gambling operations, other than licensed managers

conducting riverboat gambling operations on behalf of the

State, based on the adjusted gross receipts received by a

licensed owner from gambling games authorized under this Act at

the following rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

22.5% of annual adjusted gross receipts in excess of

$25,000,000 but not exceeding $50,000,000;

27.5% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;

32.5% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000;

37.5% of annual adjusted gross receipts in excess of

$100,000,000 but not exceeding $150,000,000;

45% of annual adjusted gross receipts in excess of

$150,000,000 but not exceeding $200,000,000;

50% of annual adjusted gross receipts in excess of

$200,000,000.

(a-3) Beginning July 1, 2003, a privilege tax is imposed on

persons engaged in the business of conducting riverboat

gambling operations, other than licensed managers conducting

riverboat gambling operations on behalf of the State, based on

the adjusted gross receipts received by a licensed owner from

gambling games authorized under this Act at the following

rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

27.5% of annual adjusted gross receipts in excess of

$25,000,000 but not exceeding $37,500,000;

32.5% of annual adjusted gross receipts in excess of

$37,500,000 but not exceeding $50,000,000;

37.5% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;

45% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000;

50% of annual adjusted gross receipts in excess of

$100,000,000 but not exceeding $250,000,000;

70% of annual adjusted gross receipts in excess of

$250,000,000.

An amount equal to the amount of wagering taxes collected

under this subsection (a-3) that are in addition to the amount

of wagering taxes that would have been collected if the

wagering tax rates under subsection (a-2) were in effect shall

be paid into the Common School Fund.

The privilege tax imposed under this subsection (a-3) shall

no longer be imposed beginning on the earlier of (i) July 1,

2005; (ii) the first date after June 20, 2003 that riverboat

gambling operations are conducted pursuant to a dormant

license; or (iii) the first day that riverboat gambling

operations are conducted under the authority of an owners

license that is in addition to the 10 owners licenses initially

authorized under this Act. For the purposes of this subsection

(a-3), the term "dormant license" means an owners license that

is authorized by this Act under which no riverboat gambling

operations are being conducted on June 20, 2003.

(a-4) Beginning on the first day on which the tax imposed

under subsection (a-3) is no longer imposed and ending upon the

imposition of the privilege tax under subsection (a-5) of this

Section, a privilege tax is imposed on persons engaged in the

business of conducting riverboat gambling operations, other

than licensed managers conducting riverboat gambling

operations on behalf of the State, based on the adjusted gross

receipts received by a licensed owner from gambling games

authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

22.5% of annual adjusted gross receipts in excess of

$25,000,000 but not exceeding $50,000,000;

27.5% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;

32.5% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000;

37.5% of annual adjusted gross receipts in excess of

$100,000,000 but not exceeding $150,000,000;

45% of annual adjusted gross receipts in excess of

$150,000,000 but not exceeding $200,000,000;

50% of annual adjusted gross receipts in excess of

$200,000,000.

For the imposition of the privilege tax in this subsection

(a-4), amounts paid pursuant to item (1) of subsection (b) of

Section 56 of the Illinois Horse Racing Act of 1975 shall not

be included in the determination of adjusted gross receipts.

(a-5) Beginning on the first day that an owners licensee

under paragraph (1), (2), (3), (4), (5), or (6) of subsection

(e-5) of Section 7 conducts gambling operations, either in a

temporary facility or a permanent facility, a privilege tax is

imposed on persons engaged in the business of conducting

gambling operations, other than licensed managers conducting

riverboat gambling operations on behalf of the State, based on

the adjusted gross receipts received by such licensee from the

gambling games authorized under this Act. The privilege tax for

all gambling games other than table games, including, but not

limited to, slot machines, video game of chance gambling, and

electronic gambling games shall be at the following rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

22.5% of annual adjusted gross receipts in excess of

$25,000,000 but not exceeding $50,000,000;

27.5% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;

32.5% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000;

37.5% of annual adjusted gross receipts in excess of

$100,000,000 but not exceeding $150,000,000;

45% of annual adjusted gross receipts in excess of

$150,000,000 but not exceeding $200,000,000;

50% of annual adjusted gross receipts in excess of

$200,000,000.

The privilege tax for table games shall be at the following

rates:

15% of annual adjusted gross receipts up to and

including $25,000,000;

20% of annual adjusted gross receipts in excess of

$25,000,000.

For the imposition of the privilege tax in this subsection

(a-5), amounts paid pursuant to item (1) of subsection (b) of

Section 56 of the Illinois Horse Racing Act of 1975 shall not

be included in the determination of adjusted gross receipts.

Notwithstanding the provisions of this subsection (a-5),

for the first 10 years that the privilege tax is imposed under

this subsection (a-5), the privilege tax shall be imposed on

the modified annual adjusted gross receipts of a riverboat or

casino conducting gambling operations in the City of East St.

Louis, unless:

(1) the riverboat or casino fails to employ at least

450 people;

(2) the riverboat or casino fails to maintain

operations in a manner consistent with this Act or is not a

viable riverboat or casino subject to the approval of the

Board; or

(3) the owners licensee is not an entity in which

employees participate in an employee stock ownership plan.

As used in this subsection (a-5), "modified annual adjusted

gross receipts" means:

(A) for calendar year 2020, the annual adjusted gross

receipts for the current year minus the difference between

an amount equal to the average annual adjusted gross

receipts from a riverboat or casino conducting gambling

operations in the City of East St. Louis for 2014, 2015,

2016, 2017, and 2018 and the annual adjusted gross receipts

for 2018;

(B) for calendar year 2021, the annual adjusted gross

receipts for the current year minus the difference between

an amount equal to the average annual adjusted gross

receipts from a riverboat or casino conducting gambling

operations in the City of East St. Louis for 2014, 2015,

2016, 2017, and 2018 and the annual adjusted gross receipts

for 2019; and

(C) for calendar years 2022 through 2029, the annual

adjusted gross receipts for the current year minus the

difference between an amount equal to the average annual

adjusted gross receipts from a riverboat or casino

conducting gambling operations in the City of East St.

Louis for 3 years preceding the current year and the annual

adjusted gross receipts for the immediately preceding

year.

(a-5.5) In addition to the privilege tax imposed under

subsection (a-5), a privilege tax is imposed on the owners

licensee under paragraph (1) of subsection (e-5) of Section 7

at the rate of one-third of the owners licensee's adjusted

gross receipts.

For the imposition of the privilege tax in this subsection

(a-5.5), amounts paid pursuant to item (1) of subsection (b) of

Section 56 of the Illinois Horse Racing Act of 1975 shall not

be included in the determination of adjusted gross receipts.

(a-6) From the effective date of this amendatory Act of the

101st General Assembly until June 30, 2023, an owners licensee

that conducted gambling operations prior to January 1, 2011

shall receive a dollar-for-dollar credit against the tax

imposed under this Section for any renovation or construction

costs paid by the owners licensee, but in no event shall the

credit exceed $2,000,000.

Additionally, from the effective date of this amendatory

Act of the 101st General Assembly until December 31, 2022, an

owners licensee that (i) is located within 15 miles of the

Missouri border, and (ii) has at least 3 riverboats, casinos,

or their equivalent within a 45-mile radius, may be authorized

to relocate to a new location with the approval of both the

unit of local government designated as the home dock and the

Board, so long as the new location is within the same unit of

local government and no more than 3 miles away from its

original location. Such owners licensee shall receive a credit

against the tax imposed under this Section equal to 8% of the

total project costs, as approved by the Board, for any

renovation or construction costs paid by the owners licensee

for the construction of the new facility, provided that the new

facility is operational by July 1, 2022. In determining whether

or not to approve a relocation, the Board must consider the

extent to which the relocation will diminish the gaming

revenues received by other Illinois gaming facilities.

(a-7) Beginning in the initial adjustment year and through

the final adjustment year, if the total obligation imposed

pursuant to either subsection (a-5) or (a-6) will result in an

owners licensee receiving less after-tax adjusted gross

receipts than it received in calendar year 2018, then the total

amount of privilege taxes that the owners licensee is required

to pay for that calendar year shall be reduced to the extent

necessary so that the after-tax adjusted gross receipts in that

calendar year equals the after-tax adjusted gross receipts in

calendar year 2018, but the privilege tax reduction shall not

exceed the annual adjustment cap. If pursuant to this

subsection (a-7), the total obligation imposed pursuant to

either subsection (a-5) or (a-6) shall be reduced, then the

owners licensee shall not receive a refund from the State at

the end of the subject calendar year but instead shall be able

to apply that amount as a credit against any payments it owes

to the State in the following calendar year to satisfy its

total obligation under either subsection (a-5) or (a-6). The

credit for the final adjustment year shall occur in the

calendar year following the final adjustment year.

If an owners licensee that conducted gambling operations

prior to January 1, 2019 expands its riverboat or casino,

including, but not limited to, with respect to its gaming

floor, additional non-gaming amenities such as restaurants,

bars, and hotels and other additional facilities, and incurs

construction and other costs related to such expansion from the

effective date of this amendatory Act of the 101st General

Assembly until the 5th anniversary of the effective date of

this amendatory Act of the 101st General Assembly, then for

each $15,000,000 spent for any such construction or other costs

related to expansion paid by the owners licensee, the final

adjustment year shall be extended by one year and the annual

adjustment cap shall increase by 0.2% of adjusted gross

receipts during each calendar year until and including the

final adjustment year. No further modifications to the final

adjustment year or annual adjustment cap shall be made after

$75,000,000 is incurred in construction or other costs related

to expansion so that the final adjustment year shall not extend

beyond the 9th calendar year after the initial adjustment year,

not including the initial adjustment year, and the annual

adjustment cap shall not exceed 4% of adjusted gross receipts

in a particular calendar year. Construction and other costs

related to expansion shall include all project related costs,

including, but not limited to, all hard and soft costs,

financing costs, on or off-site ground, road or utility work,

cost of gaming equipment and all other personal property,

initial fees assessed for each incremental gaming position, and

the cost of incremental land acquired for such expansion. Soft

costs shall include, but not be limited to, legal fees,

architect, engineering and design costs, other consultant

costs, insurance cost, permitting costs, and pre-opening costs

related to the expansion, including, but not limited to, any of

the following: marketing, real estate taxes, personnel,

training, travel and out-of-pocket expenses, supply,

inventory, and other costs, and any other project related soft

costs.

To be eligible for the tax credits in subsection (a-6), all

construction contracts shall include a requirement that the

contractor enter into a project labor agreement with the

building and construction trades council with geographic

jurisdiction of the location of the proposed gaming facility.

Notwithstanding any other provision of this subsection

(a-7), this subsection (a-7) does not apply to an owners

licensee unless such owners licensee spends at least

$15,000,000 on construction and other costs related to its

expansion, excluding the initial fees assessed for each

incremental gaming position.

This subsection (a-7) does not apply to owners licensees

authorized pursuant to subsection (e-5) of Section 7 of this

Act.

For purposes of this subsection (a-7):

"Building and construction trades council" means any

organization representing multiple construction entities that

are monitoring or attentive to compliance with public or

workers' safety laws, wage and hour requirements, or other

statutory requirements or that are making or maintaining

collective bargaining agreements.

"Initial adjustment year" means the year commencing on

January 1 of the calendar year immediately following the

earlier of the following:

(1) the commencement of gambling operations, either in

a temporary or permanent facility, with respect to the

owners license authorized under paragraph (1) of

subsection (e-5) of Section 7 of this Act; or

(2) 24 months after the effective date of this

amendatory Act of the 101st General Assembly, provided the

initial adjustment year shall not commence earlier than 12

months after the effective date of this amendatory Act of

the 101st General Assembly.

"Final adjustment year" means the 2nd calendar year after

the initial adjustment year, not including the initial

adjustment year, and as may be extended further as described in

this subsection (a-7).

"Annual adjustment cap" means 3% of adjusted gross receipts

in a particular calendar year, and as may be increased further

as otherwise described in this subsection (a-7).

(a-8) Riverboat gambling operations conducted by a

licensed manager on behalf of the State are not subject to the

tax imposed under this Section.

(a-9) Beginning on January 1, 2020, the calculation of

gross receipts or adjusted gross receipts, for the purposes of

this Section, for a riverboat, a casino, or an organization

gaming facility shall not include the dollar amount of

non-cashable vouchers, coupons, and electronic promotions

redeemed by wagerers upon the riverboat, in the casino, or in

the organization gaming facility up to and including an amount

not to exceed 20% of a riverboat's, a casino's, or an

organization gaming facility's adjusted gross receipts.

The Illinois Gaming Board shall submit to the General

Assembly a comprehensive report no later than March 31, 2023

detailing, at a minimum, the effect of removing non-cashable

vouchers, coupons, and electronic promotions from this

calculation on net gaming revenues to the State in calendar

years 2020 through 2022, the increase or reduction in wagerers

as a result of removing non-cashable vouchers, coupons, and

electronic promotions from this calculation, the effect of the

tax rates in subsection (a-5) on net gaming revenues to this

State, and proposed modifications to the calculation.

(a-10) The taxes imposed by this Section shall be paid by

the licensed owner or the organization gaming licensee to the

Board not later than 5:00 o'clock p.m. of the day after the day

when the wagers were made.

(a-15) If the privilege tax imposed under subsection (a-3)

is no longer imposed pursuant to item (i) of the last paragraph

of subsection (a-3), then by June 15 of each year, each owners

licensee, other than an owners licensee that admitted 1,000,000

persons or fewer in calendar year 2004, must, in addition to

the payment of all amounts otherwise due under this Section,

pay to the Board a reconciliation payment in the amount, if

any, by which the licensed owner's base amount exceeds the

amount of net privilege tax paid by the licensed owner to the

Board in the then current State fiscal year. A licensed owner's

net privilege tax obligation due for the balance of the State

fiscal year shall be reduced up to the total of the amount paid

by the licensed owner in its June 15 reconciliation payment.

The obligation imposed by this subsection (a-15) is binding on

any person, firm, corporation, or other entity that acquires an

ownership interest in any such owners license. The obligation

imposed under this subsection (a-15) terminates on the earliest

of: (i) July 1, 2007, (ii) the first day after the effective

date of this amendatory Act of the 94th General Assembly that

riverboat gambling operations are conducted pursuant to a

dormant license, (iii) the first day that riverboat gambling

operations are conducted under the authority of an owners

license that is in addition to the 10 owners licenses initially

authorized under this Act, or (iv) the first day that a

licensee under the Illinois Horse Racing Act of 1975 conducts

gaming operations with slot machines or other electronic gaming

devices. The Board must reduce the obligation imposed under

this subsection (a-15) by an amount the Board deems reasonable

for any of the following reasons: (A) an act or acts of God,

(B) an act of bioterrorism or terrorism or a bioterrorism or

terrorism threat that was investigated by a law enforcement

agency, or (C) a condition beyond the control of the owners

licensee that does not result from any act or omission by the

owners licensee or any of its agents and that poses a hazardous

threat to the health and safety of patrons. If an owners

licensee pays an amount in excess of its liability under this

Section, the Board shall apply the overpayment to future

payments required under this Section.

For purposes of this subsection (a-15):

"Act of God" means an incident caused by the operation of

an extraordinary force that cannot be foreseen, that cannot be

avoided by the exercise of due care, and for which no person

can be held liable.

"Base amount" means the following:

For a riverboat in Alton, $31,000,000.

For a riverboat in East Peoria, $43,000,000.

For the Empress riverboat in Joliet, $86,000,000.

For a riverboat in Metropolis, $45,000,000.

For the Harrah's riverboat in Joliet, $114,000,000.

For a riverboat in Aurora, $86,000,000.

For a riverboat in East St. Louis, $48,500,000.

For a riverboat in Elgin, $198,000,000.

"Dormant license" has the meaning ascribed to it in

subsection (a-3).

"Net privilege tax" means all privilege taxes paid by a

licensed owner to the Board under this Section, less all

payments made from the State Gaming Fund pursuant to subsection

(b) of this Section.

The changes made to this subsection (a-15) by Public Act

94-839 are intended to restate and clarify the intent of Public

Act 94-673 with respect to the amount of the payments required

to be made under this subsection by an owners licensee to the

Board.

(b) From Until January 1, 1998, 25% of the tax revenue

deposited in the State Gaming Fund under this Section shall be

paid, subject to appropriation by the General Assembly, to the

unit of local government which is designated as the home dock

of the riverboat. Beginning January 1, 1998, from the tax

revenue from riverboat or casino gambling deposited in the

State Gaming Fund under this Section, an amount equal to 5% of

adjusted gross receipts generated by a riverboat or a casino,

other than a riverboat or casino designated in paragraph (1),

(3), or (4) of subsection (e-5) of Section 7, shall be paid

monthly, subject to appropriation by the General Assembly, to

the unit of local government in which the casino is located or

that is designated as the home dock of the riverboat.

Notwithstanding anything to the contrary, beginning on the

first day that an owners licensee under paragraph (1), (2),

(3), (4), (5), or (6) of subsection (e-5) of Section 7 conducts

gambling operations, either in a temporary facility or a

permanent facility, and for 2 years thereafter, a unit of local

government designated as the home dock of a riverboat whose

license was issued before January 1, 2019, other than a

riverboat conducting gambling operations in the City of East

St. Louis, shall not receive less under this subsection (b)

than the amount the unit of local government received under

this subsection (b) in calendar year 2018. Notwithstanding

anything to the contrary and because the City of East St. Louis

is a financially distressed city, beginning on the first day

that an owners licensee under paragraph (1), (2), (3), (4),

(5), or (6) of subsection (e-5) of Section 7 conducts gambling

operations, either in a temporary facility or a permanent

facility, and for 10 years thereafter, a unit of local

government designated as the home dock of a riverboat

conducting gambling operations in the City of East St. Louis

shall not receive less under this subsection (b) than the

amount the unit of local government received under this

subsection (b) in calendar year 2018.

From the tax revenue deposited in the State Gaming Fund

pursuant to riverboat or casino gambling operations conducted

by a licensed manager on behalf of the State, an amount equal

to 5% of adjusted gross receipts generated pursuant to those

riverboat or casino gambling operations shall be paid monthly,

subject to appropriation by the General Assembly, to the unit

of local government that is designated as the home dock of the

riverboat upon which those riverboat gambling operations are

conducted or in which the casino is located.

From the tax revenue from riverboat or casino gambling

deposited in the State Gaming Fund under this Section, an

amount equal to 5% of the adjusted gross receipts generated by

a riverboat designated in paragraph (3) of subsection (e-5) of

Section 7 shall be divided and remitted monthly, subject to

appropriation, as follows: 70% to Waukegan, 10% to Park City,

15% to North Chicago, and 5% to Lake County.

From the tax revenue from riverboat or casino gambling

deposited in the State Gaming Fund under this Section, an

amount equal to 5% of the adjusted gross receipts generated by

a riverboat designated in paragraph (4) of subsection (e-5) of

Section 7 shall be remitted monthly, subject to appropriation,

as follows: 70% to the City of Rockford, 5% to the City of

Loves Park, 5% to the Village of Machesney, and 20% to

Winnebago County.

From the tax revenue from riverboat or casino gambling

deposited in the State Gaming Fund under this Section, an

amount equal to 5% of the adjusted gross receipts generated by

a riverboat designated in paragraph (5) of subsection (e-5) of

Section 7 shall be remitted monthly, subject to appropriation,

as follows: 2% to the unit of local government in which the

riverboat or casino is located, and 3% shall be distributed:

(A) in accordance with a regional capital development plan

entered into by the following communities: Village of Beecher,

City of Blue Island, Village of Burnham, City of Calumet City,

Village of Calumet Park, City of Chicago Heights, City of

Country Club Hills, Village of Crestwood, Village of Crete,

Village of Dixmoor, Village of Dolton, Village of East Hazel

Crest, Village of Flossmoor, Village of Ford Heights, Village

of Glenwood, City of Harvey, Village of Hazel Crest, Village of

Homewood, Village of Lansing, Village of Lynwood, City of

Markham, Village of Matteson, Village of Midlothian, Village of

Monee, City of Oak Forest, Village of Olympia Fields, Village

of Orland Hills, Village of Orland Park, City of Palos Heights,

Village of Park Forest, Village of Phoenix, Village of Posen,

Village of Richton Park, Village of Riverdale, Village of

Robbins, Village of Sauk Village, Village of South Chicago

Heights, Village of South Holland, Village of Steger, Village

of Thornton, Village of Tinley Park, Village of University Park

and Village of Worth; or (B) if no regional capital development

plan exists, equally among the communities listed in item (A)

to be used for capital expenditures or public pension payments,

or both.

Units of local government may refund any portion of the

payment that they receive pursuant to this subsection (b) to

the riverboat or casino.

(b-4) Beginning on the first day the licensee under

paragraph (5) of subsection (e-5) of Section 7 conducts

gambling operations, either in a temporary facility or a

permanent facility, and ending on July 31, 2042, from the tax

revenue deposited in the State Gaming Fund under this Section,

$5,000,000 shall be paid annually, subject to appropriation, to

the host municipality of that owners licensee of a license

issued or re-issued pursuant to Section 7.1 of this Act before

January 1, 2012. Payments received by the host municipality

pursuant to this subsection (b-4) may not be shared with any

other unit of local government.

(b-5) Beginning on the effective date of this amendatory

Act of the 101st General Assembly, from the tax revenue

deposited in the State Gaming Fund under this Section, an

amount equal to 3% of adjusted gross receipts generated by each

organization gaming facility located outside Madison County

shall be paid monthly, subject to appropriation by the General

Assembly, to a municipality other than the Village of Stickney

in which each organization gaming facility is located or, if

the organization gaming facility is not located within a

municipality, to the county in which the organization gaming

facility is located, except as otherwise provided in this

Section. From the tax revenue deposited in the State Gaming

Fund under this Section, an amount equal to 3% of adjusted

gross receipts generated by an organization gaming facility

located in the Village of Stickney shall be paid monthly,

subject to appropriation by the General Assembly, as follows:

25% to the Village of Stickney, 5% to the City of Berwyn, 50%

to the Town of Cicero, and 20% to the Stickney Public Health

District.

From the tax revenue deposited in the State Gaming Fund

under this Section, an amount equal to 5% of adjusted gross

receipts generated by an organization gaming facility located

in the City of Collinsville shall be paid monthly, subject to

appropriation by the General Assembly, as follows: 30% to the

City of Alton, 30% to the City of East St. Louis, and 40% to the

City of Collinsville.

Municipalities and counties may refund any portion of the

payment that they receive pursuant to this subsection (b-5) to

the organization gaming facility.

(b-6) Beginning on the effective date of this amendatory

Act of the 101st General Assembly, from the tax revenue

deposited in the State Gaming Fund under this Section, an

amount equal to 2% of adjusted gross receipts generated by an

organization gaming facility located outside Madison County

shall be paid monthly, subject to appropriation by the General

Assembly, to the county in which the organization gaming

facility is located for the purposes of its criminal justice

system or health care system.

Counties may refund any portion of the payment that they

receive pursuant to this subsection (b-6) to the organization

gaming facility.

(b-7) From the tax revenue from the organization gaming

licensee located in one of the following townships of Cook

County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or

Worth, an amount equal to 5% of the adjusted gross receipts

generated by that organization gaming licensee shall be

remitted monthly, subject to appropriation, as follows: 2% to

the unit of local government in which the organization gaming

licensee is located, and 3% shall be distributed: (A) in

accordance with a regional capital development plan entered

into by the following communities: Village of Beecher, City of

Blue Island, Village of Burnham, City of Calumet City, Village

of Calumet Park, City of Chicago Heights, City of Country Club

Hills, Village of Crestwood, Village of Crete, Village of

Dixmoor, Village of Dolton, Village of East Hazel Crest,

Village of Flossmoor, Village of Ford Heights, Village of

Glenwood, City of Harvey, Village of Hazel Crest, Village of

Homewood, Village of Lansing, Village of Lynwood, City of

Markham, Village of Matteson, Village of Midlothian, Village of

Monee, City of Oak Forest, Village of Olympia Fields, Village

of Orland Hills, Village of Orland Park, City of Palos Heights,

Village of Park Forest, Village of Phoenix, Village of Posen,

Village of Richton Park, Village of Riverdale, Village of

Robbins, Village of Sauk Village, Village of South Chicago

Heights, Village of South Holland, Village of Steger, Village

of Thornton, Village of Tinley Park, Village of University

Park, and Village of Worth; or (B) if no regional capital

development plan exists, equally among the communities listed

in item (A) to be used for capital expenditures or public

pension payments, or both.

(b-8) In lieu of the payments under subsection (b) of this

Section, the tax revenue from the privilege tax imposed by

subsection (a-5.5) shall be paid monthly, subject to

appropriation by the General Assembly, to the City of Chicago

and shall be expended or obligated by the City of Chicago for

pension payments in accordance with Public Act 99-506.

(c) Appropriations, as approved by the General Assembly,

may be made from the State Gaming Fund to the Board (i) for the

administration and enforcement of this Act and the Video Gaming

Act, (ii) for distribution to the Department of State Police

and to the Department of Revenue for the enforcement of this

Act, and the Video Gaming Act, and (iii) to the Department of

Human Services for the administration of programs to treat

problem gambling. The Board's annual appropriations request

must separately state its funding needs for the regulation of

gaming authorized under Section 7.7, riverboat gaming, casino

gaming, video gaming, and sports wagering.

(c-2) An amount equal to 2% of the adjusted gross receipts

generated by an organization gaming facility located within a

home rule county with a population of over 3,000,000

inhabitants shall be paid, subject to appropriation from the

General Assembly, from the State Gaming Fund to the home rule

county in which the organization gaming licensee is located for

the purpose of enhancing the county's criminal justice system.

(c-3) Appropriations, as approved by the General Assembly,

may be made from the tax revenue deposited into the State

Gaming Fund from organization gaming licensees pursuant to this

Section for the administration and enforcement of this Act.

(c-4) After payments required under subsections (b),

(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from

the tax revenue from organization gaming licensees deposited

into the State Gaming Fund under this Section, all remaining

amounts from organization gaming licensees shall be

transferred into the Capital Projects Fund.

(c-5) (Blank). Before May 26, 2006 (the effective date of

Public Act 94-804) and beginning on the effective date of this

amendatory Act of the 95th General Assembly, unless any

organization licensee under the Illinois Horse Racing Act of

1975 begins to operate a slot machine or video game of chance

under the Illinois Horse Racing Act of 1975 or this Act, after

the payments required under subsections (b) and (c) have been

made, an amount equal to 15% of the adjusted gross receipts of

(1) an owners licensee that relocates pursuant to Section 11.2,

(2) an owners licensee conducting riverboat gambling

operations pursuant to an owners license that is initially

issued after June 25, 1999, or (3) the first riverboat gambling

operations conducted by a licensed manager on behalf of the

State under Section 7.3, whichever comes first, shall be paid

from the State Gaming Fund into the Horse Racing Equity Fund.

(c-10) Each year the General Assembly shall appropriate

from the General Revenue Fund to the Education Assistance Fund

an amount equal to the amount paid into the Horse Racing Equity

Fund pursuant to subsection (c-5) in the prior calendar year.

(c-15) After the payments required under subsections (b),

(c), and (c-5) have been made, an amount equal to 2% of the

adjusted gross receipts of (1) an owners licensee that

relocates pursuant to Section 11.2, (2) an owners licensee

conducting riverboat gambling operations pursuant to an owners

license that is initially issued after June 25, 1999, or (3)

the first riverboat gambling operations conducted by a licensed

manager on behalf of the State under Section 7.3, whichever

comes first, shall be paid, subject to appropriation from the

General Assembly, from the State Gaming Fund to each home rule

county with a population of over 3,000,000 inhabitants for the

purpose of enhancing the county's criminal justice system.

(c-20) Each year the General Assembly shall appropriate

from the General Revenue Fund to the Education Assistance Fund

an amount equal to the amount paid to each home rule county

with a population of over 3,000,000 inhabitants pursuant to

subsection (c-15) in the prior calendar year.

(c-21) After the payments required under subsections (b),

(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have

been made, an amount equal to 2% of the adjusted gross receipts

generated by the owners licensee under paragraph (1) of

subsection (e-5) of Section 7 shall be paid, subject to

appropriation from the General Assembly, from the State Gaming

Fund to the home rule county in which the owners licensee is

located for the purpose of enhancing the county's criminal

justice system.

(c-22) After the payments required under subsections (b),

(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and

(c-21) have been made, an amount equal to 2% of the adjusted

gross receipts generated by the owners licensee under paragraph

(5) of subsection (e-5) of Section 7 shall be paid, subject to

appropriation from the General Assembly, from the State Gaming

Fund to the home rule county in which the owners licensee is

located for the purpose of enhancing the county's criminal

justice system.

(c-25) From On July 1, 2013 and each July 1

thereafterthrough July 1, 2019, $1,600,000 shall be

transferred from the State Gaming Fund to the Chicago State

University Education Improvement Fund.

On July 1, 2020 and each July 1 thereafter, $3,000,000

shall be transferred from the State Gaming Fund to the Chicago

State University Education Improvement Fund.

(c-30) On July 1, 2013 or as soon as possible thereafter,

$92,000,000 shall be transferred from the State Gaming Fund to

the School Infrastructure Fund and $23,000,000 shall be

transferred from the State Gaming Fund to the Horse Racing

Equity Fund.

(c-35) Beginning on July 1, 2013, in addition to any amount

transferred under subsection (c-30) of this Section,

$5,530,000 shall be transferred monthly from the State Gaming

Fund to the School Infrastructure Fund.

(d) From time to time, the Board shall transfer the

remainder of the funds generated by this Act into the Education

Assistance Fund, created by Public Act 86-0018, of the State of

Illinois.

(e) Nothing in this Act shall prohibit the unit of local

government designated as the home dock of the riverboat from

entering into agreements with other units of local government

in this State or in other states to share its portion of the

tax revenue.

(f) To the extent practicable, the Board shall administer

and collect the wagering taxes imposed by this Section in a

manner consistent with the provisions of Sections 4, 5, 5a, 5b,

5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the

Retailers' Occupation Tax Act and Section 3-7 of the Uniform

Penalty and Interest Act.

(Source: P.A. 98-18, eff. 6-7-13.)

(230 ILCS 10/14) (from Ch. 120, par. 2414)

Sec. 14. Licensees - Records - Reports - Supervision.

(a) Licensed owners and organization gaming licensees A

licensed owner shall keep his books and records so as to

clearly show the following:

(1) The amount received daily from admission fees.

(2) The total amount of gross receipts.

(3) The total amount of the adjusted gross receipts.

(b) Licensed owners and organization gaming licensees The

licensed owner shall furnish to the Board reports and

information as the Board may require with respect to its

activities on forms designed and supplied for such purpose by

the Board.

(c) The books and records kept by a licensed owner as

provided by this Section are public records and the

examination, publication, and dissemination of the books and

records are governed by the provisions of The Freedom of

Information Act.

(Source: P.A. 86-1029.)

(230 ILCS 10/15) (from Ch. 120, par. 2415)

Sec. 15. Audit of Licensee Operations. Annually, the

licensed owner, or manager, or organization gaming licensee

shall transmit to the Board an audit of the financial

transactions and condition of the licensee's or manager's total

operations. Additionally, within 90 days after the end of each

quarter of each fiscal year, the licensed owner, or manager, or

organization gaming licensee shall transmit to the Board a

compliance report on engagement procedures determined by the

Board. All audits and compliance engagements shall be conducted

by certified public accountants selected by the Board. Each

certified public accountant must be registered in the State of

Illinois under the Illinois Public Accounting Act. The

compensation for each certified public accountant shall be paid

directly by the licensed owner, or manager, or organization

gaming licensee to the certified public accountant.

(Source: P.A. 96-1392, eff. 1-1-11.)

(230 ILCS 10/17) (from Ch. 120, par. 2417)

Sec. 17. Administrative Procedures. The Illinois

Administrative Procedure Act shall apply to all administrative

rules and procedures of the Board under this Act and or the

Video Gaming Act, except that: (1) subsection (b) of Section

5-10 of the Illinois Administrative Procedure Act does not

apply to final orders, decisions and opinions of the Board; (2)

subsection (a) of Section 5-10 of the Illinois Administrative

Procedure Act does not apply to forms established by the Board

for use under this Act and or the Video Gaming Act; (3) the

provisions of Section 10-45 of the Illinois Administrative

Procedure Act regarding proposals for decision are excluded

under this Act and or the Video Gaming Act; and (4) the

provisions of subsection (d) of Section 10-65 of the Illinois

Administrative Procedure Act do not apply so as to prevent

summary suspension of any license pending revocation or other

action, which suspension shall remain in effect unless modified

by the Board or unless the Board's decision is reversed on the

merits upon judicial review.

(Source: P.A. 96-34, eff. 7-13-09.)

(230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)

Sec. 17.1. Judicial Review.

(a) Jurisdiction and venue for the judicial review of a

final order of the Board relating to licensed owners,

suppliers, organization gaming licensees, and or special event

licenses is vested in the Appellate Court of the judicial

district in which Sangamon County is located. A petition for

judicial review of a final order of the Board must be filed in

the Appellate Court, within 35 days from the date that a copy

of the decision sought to be reviewed was served upon the party

affected by the decision.

(b) Judicial review of all other final orders of the Board

shall be conducted in accordance with the Administrative Review

Law.

(Source: P.A. 88-1.)

(230 ILCS 10/18) (from Ch. 120, par. 2418)

Sec. 18. Prohibited Activities - Penalty.

(a) A person is guilty of a Class A misdemeanor for doing

any of the following:

(1) Conducting gambling where wagering is used or to be

used without a license issued by the Board.

(2) Conducting gambling where wagering is permitted

other than in the manner specified by Section 11.

(b) A person is guilty of a Class B misdemeanor for doing

any of the following:

(1) permitting a person under 21 years to make a wager;

or

(2) violating paragraph (12) of subsection (a) of

Section 11 of this Act.

(c) A person wagering or accepting a wager at any location

outside the riverboat, casino, or organization gaming facility

in violation of paragraph is subject to the penalties in

paragraphs (1) or (2) of subsection (a) of Section 28-1 of the

Criminal Code of 2012 is subject to the penalties provided in

that Section.

(d) A person commits a Class 4 felony and, in addition,

shall be barred for life from gambling operations riverboats

under the jurisdiction of the Board, if the person does any of

the following:

(1) Offers, promises, or gives anything of value or

benefit to a person who is connected with a riverboat or

casino owner or organization gaming licensee, including,

but not limited to, an officer or employee of a licensed

owner, organization gaming licensee, or holder of an

occupational license pursuant to an agreement or

arrangement or with the intent that the promise or thing of

value or benefit will influence the actions of the person

to whom the offer, promise, or gift was made in order to

affect or attempt to affect the outcome of a gambling game,

or to influence official action of a member of the Board.

(2) Solicits or knowingly accepts or receives a promise

of anything of value or benefit while the person is

connected with a riverboat, casino, or organization gaming

facility, including, but not limited to, an officer or

employee of a licensed owner or organization gaming

licensee, or the holder of an occupational license,

pursuant to an understanding or arrangement or with the

intent that the promise or thing of value or benefit will

influence the actions of the person to affect or attempt to

affect the outcome of a gambling game, or to influence

official action of a member of the Board.

(3) Uses or possesses with the intent to use a device

to assist:

(i) In projecting the outcome of the game.

(ii) In keeping track of the cards played.

(iii) In analyzing the probability of the

occurrence of an event relating to the gambling game.

(iv) In analyzing the strategy for playing or

betting to be used in the game except as permitted by

the Board.

(4) Cheats at a gambling game.

(5) Manufactures, sells, or distributes any cards,

chips, dice, game or device which is intended to be used to

violate any provision of this Act.

(6) Alters or misrepresents the outcome of a gambling

game on which wagers have been made after the outcome is

made sure but before it is revealed to the players.

(7) Places a bet after acquiring knowledge, not

available to all players, of the outcome of the gambling

game which is subject of the bet or to aid a person in

acquiring the knowledge for the purpose of placing a bet

contingent on that outcome.

(8) Claims, collects, or takes, or attempts to claim,

collect, or take, money or anything of value in or from the

gambling games, with intent to defraud, without having made

a wager contingent on winning a gambling game, or claims,

collects, or takes an amount of money or thing of value of

greater value than the amount won.

(9) Uses counterfeit chips or tokens in a gambling

game.

(10) Possesses any key or device designed for the

purpose of opening, entering, or affecting the operation of

a gambling game, drop box, or an electronic or mechanical

device connected with the gambling game or for removing

coins, tokens, chips or other contents of a gambling game.

This paragraph (10) does not apply to a gambling licensee

or employee of a gambling licensee acting in furtherance of

the employee's employment.

(e) The possession of more than one of the devices

described in subsection (d), paragraphs (3), (5), or (10)

permits a rebuttable presumption that the possessor intended to

use the devices for cheating.

(f) A person under the age of 21 who, except as authorized

under paragraph (10) of Section 11, enters upon a riverboat or

in a casino or organization gaming facility commits a petty

offense and is subject to a fine of not less than $100 or more

than $250 for a first offense and of not less than $200 or more

than $500 for a second or subsequent offense.

An action to prosecute any crime occurring on a riverboat

shall be tried in the county of the dock at which the riverboat

is based. An action to prosecute any crime occurring in a

casino or organization gaming facility shall be tried in the

county in which the casino or organization gaming facility is

located.

(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

(230 ILCS 10/18.1)

Sec. 18.1. Distribution of certain fines. If a fine is

imposed on an owners owner licensee or an organization gaming

licensee for knowingly sending marketing or promotional

materials to any person placed on the self-exclusion list, then

the Board shall distribute an amount equal to 15% of the fine

imposed to the unit of local government in which the casino,

riverboat, or organization gaming facility is located for the

purpose of awarding grants to non-profit entities that assist

gambling addicts.

(Source: P.A. 96-224, eff. 8-11-09.)

(230 ILCS 10/19) (from Ch. 120, par. 2419)

Sec. 19. Forfeiture of property.

(a) Except as provided in subsection (b), any riverboat,

casino, or organization gaming facility used for the conduct of

gambling games in violation of this Act shall be considered a

gambling place in violation of Section 28-3 of the Criminal

Code of 2012. Every gambling device found on a riverboat, in a

casino, or at an organization gaming facility operating

gambling games in violation of this Act and every slot machine

and video game of chance found at an organization gaming

facility operating gambling games in violation of this Act

shall be subject to seizure, confiscation and destruction as

provided in Section 28-5 of the Criminal Code of 2012.

(b) It is not a violation of this Act for a riverboat or

other watercraft which is licensed for gaming by a contiguous

state to dock on the shores of this State if the municipality

having jurisdiction of the shores, or the county in the case of

unincorporated areas, has granted permission for docking and no

gaming is conducted on the riverboat or other watercraft while

it is docked on the shores of this State. No gambling device

shall be subject to seizure, confiscation or destruction if the

gambling device is located on a riverboat or other watercraft

which is licensed for gaming by a contiguous state and which is

docked on the shores of this State if the municipality having

jurisdiction of the shores, or the county in the case of

unincorporated areas, has granted permission for docking and no

gaming is conducted on the riverboat or other watercraft while

it is docked on the shores of this State.

(Source: P.A. 97-1150, eff. 1-25-13.)

(230 ILCS 10/20) (from Ch. 120, par. 2420)

Sec. 20. Prohibited activities - civil penalties. Any

person who conducts a gambling operation without first

obtaining a license to do so, or who continues to conduct such

games after revocation of his license, or any licensee who

conducts or allows to be conducted any unauthorized gambling

games on a riverboat, in a casino, or at an organization gaming

facility where it is authorized to conduct its riverboat

gambling operation, in addition to other penalties provided,

shall be subject to a civil penalty equal to the amount of

gross receipts derived from wagering on the gambling games,

whether unauthorized or authorized, conducted on that day as

well as confiscation and forfeiture of all gambling game

equipment used in the conduct of unauthorized gambling games.

(Source: P.A. 86-1029.)

(230 ILCS 10/24)

Sec. 24. Applicability of this Illinois Riverboat Gambling

Act. The provisions of this the Illinois Riverboat Gambling

Act, and all rules promulgated thereunder, shall apply to the

Video Gaming Act, except where there is a conflict between the

2 Acts. In the event of a conflict between this Act and the

Video Gaming Act, the terms of this Act shall prevail.

(Source: P.A. 96-37, eff. 7-13-09.)

Section 35-60. The Video Gaming Act is amended by changing

Sections 5, 15, 20, 25, 30, 35, 45, 55, 58, 60, 79, and 80 as

follows:

(230 ILCS 40/5)

Sec. 5. Definitions. As used in this Act:

"Board" means the Illinois Gaming Board.

"Credit" means one, 5, 10, or 25 cents either won or

purchased by a player.

"Distributor" means an individual, partnership,

corporation, or limited liability company licensed under this

Act to buy, sell, lease, or distribute video gaming terminals

or major components or parts of video gaming terminals to or

from terminal operators.

"Electronic card" means a card purchased from a licensed

establishment, licensed fraternal establishment, licensed

veterans establishment, or licensed truck stop establishment,

or licensed large truck stop establishment for use in that

establishment as a substitute for cash in the conduct of gaming

on a video gaming terminal.

"Electronic voucher" means a voucher printed by an

electronic video game machine that is redeemable in the

licensed establishment for which it was issued.

"In-location bonus jackpot" means one or more video gaming

terminals at a single licensed establishment that allows for

wagers placed on such video gaming terminals to contribute to a

cumulative maximum jackpot of up to $10,000.

"Terminal operator" means an individual, partnership,

corporation, or limited liability company that is licensed

under this Act and that owns, services, and maintains video

gaming terminals for placement in licensed establishments,

licensed truck stop establishments, licensed large truck stop

establishments, licensed fraternal establishments, or licensed

veterans establishments.

"Licensed technician" means an individual who is licensed

under this Act to repair, service, and maintain video gaming

terminals.

"Licensed terminal handler" means a person, including but

not limited to an employee or independent contractor working

for a manufacturer, distributor, supplier, technician, or

terminal operator, who is licensed under this Act to possess or

control a video gaming terminal or to have access to the inner

workings of a video gaming terminal. A licensed terminal

handler does not include an individual, partnership,

corporation, or limited liability company defined as a

manufacturer, distributor, supplier, technician, or terminal

operator under this Act.

"Manufacturer" means an individual, partnership,

corporation, or limited liability company that is licensed

under this Act and that manufactures or assembles video gaming

terminals.

"Supplier" means an individual, partnership, corporation,

or limited liability company that is licensed under this Act to

supply major components or parts to video gaming terminals to

licensed terminal operators.

"Net terminal income" means money put into a video gaming

terminal minus credits paid out to players.

"Video gaming terminal" means any electronic video game

machine that, upon insertion of cash, electronic cards or

vouchers, or any combination thereof, is available to play or

simulate the play of a video game, including but not limited to

video poker, line up, and blackjack, as authorized by the Board

utilizing a video display and microprocessors in which the

player may receive free games or credits that can be redeemed

for cash. The term does not include a machine that directly

dispenses coins, cash, or tokens or is for amusement purposes

only.

"Licensed establishment" means any licensed retail

establishment where alcoholic liquor is drawn, poured, mixed,

or otherwise served for consumption on the premises, whether

the establishment operates on a nonprofit or for-profit basis.

"Licensed establishment" includes any such establishment that

has a contractual relationship with an inter-track wagering

location licensee licensed under the Illinois Horse Racing Act

of 1975, provided any contractual relationship shall not

include any transfer or offer of revenue from the operation of

video gaming under this Act to any licensee licensed under the

Illinois Horse Racing Act of 1975. Provided, however, that the

licensed establishment that has such a contractual

relationship with an inter-track wagering location licensee

may not, itself, be (i) an inter-track wagering location

licensee, (ii) the corporate parent or subsidiary of any

licensee licensed under the Illinois Horse Racing Act of 1975,

or (iii) the corporate subsidiary of a corporation that is also

the corporate parent or subsidiary of any licensee licensed

under the Illinois Horse Racing Act of 1975. "Licensed

establishment" does not include a facility operated by an

organization licensee, an inter-track wagering licensee, or an

inter-track wagering location licensee licensed under the

Illinois Horse Racing Act of 1975 or a riverboat licensed under

the Illinois Riverboat Gambling Act, except as provided in this

paragraph. The changes made to this definition by Public Act

98-587 are declarative of existing law.

"Licensed fraternal establishment" means the location

where a qualified fraternal organization that derives its

charter from a national fraternal organization regularly

meets.

"Licensed veterans establishment" means the location where

a qualified veterans organization that derives its charter from

a national veterans organization regularly meets.

"Licensed truck stop establishment" means a facility (i)

that is at least a 3-acre facility with a convenience store,

(ii) with separate diesel islands for fueling commercial motor

vehicles, (iii) that sells at retail more than 10,000 gallons

of diesel or biodiesel fuel per month, and (iv) with parking

spaces for commercial motor vehicles. "Commercial motor

vehicles" has the same meaning as defined in Section 18b-101 of

the Illinois Vehicle Code. The requirement of item (iii) of

this paragraph may be met by showing that estimated future

sales or past sales average at least 10,000 gallons per month.

"Licensed large truck stop establishment" means a facility

located within 3 road miles from a freeway interchange, as

measured in accordance with the Department of Transportation's

rules regarding the criteria for the installation of business

signs: (i) that is at least a 3-acre facility with a

convenience store, (ii) with separate diesel islands for

fueling commercial motor vehicles, (iii) that sells at retail

more than 50,000 gallons of diesel or biodiesel fuel per month,

and (iv) with parking spaces for commercial motor vehicles.

"Commercial motor vehicles" has the same meaning as defined in

Section 18b-101 of the Illinois Vehicle Code. The requirement

of item (iii) of this paragraph may be met by showing that

estimated future sales or past sales average at least 50,000

gallons per month.

(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;

98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.

7-16-14.)

(230 ILCS 40/15)

Sec. 15. Minimum requirements for licensing and

registration. Every video gaming terminal offered for play

shall first be tested and approved pursuant to the rules of the

Board, and each video gaming terminal offered in this State for

play shall conform to an approved model. For the examination of

video gaming machines and associated equipment as required by

this Section, the Board shall may utilize the services of one

or more independent outside testing laboratories that have been

accredited in accordance with ISO/IEC 17025 by an accreditation

body that is a signatory to the International Laboratory

Accreditation Cooperation Mutual Recognition Agreement

signifying they are qualified to by a national accreditation

body and that, in the judgment of the Board, are qualified to

perform such examinations. Notwithstanding any law to the

contrary, the Board shall consider the licensing of independent

outside testing laboratory applicants in accordance with

procedures established by the Board by rule. The Board shall

not withhold its approval of an independent outside testing

laboratory license applicant that has been accredited as

required by this Section and is licensed in gaming

jurisdictions comparable to Illinois. Upon the finalization of

required rules, the Board shall license independent testing

laboratories and accept the test reports of any licensed

testing laboratory of the video gaming machine's or associated

equipment manufacturer's choice, notwithstanding the existence

of contracts between the Board and any independent testing

laboratory. Every video gaming terminal offered in this State

for play must meet minimum standards set by an independent

outside testing laboratory approved by the Board. Each approved

model shall, at a minimum, meet the following criteria:

(1) It must conform to all requirements of federal law

and regulations, including FCC Class A Emissions

Standards.

(2) It must theoretically pay out a mathematically

demonstrable percentage during the expected lifetime of

the machine of all amounts played, which must not be less

than 80%. The Board shall establish a maximum payout

percentage for approved models by rule. Video gaming

terminals that may be affected by skill must meet this

standard when using a method of play that will provide the

greatest return to the player over a period of continuous

play.

(3) It must use a random selection process to determine

the outcome of each play of a game. The random selection

process must meet 99% confidence limits using a standard

chi-squared test for (randomness) goodness of fit.

(4) It must display an accurate representation of the

game outcome.

(5) It must not automatically alter pay tables or any

function of the video gaming terminal based on internal

computation of hold percentage or have any means of

manipulation that affects the random selection process or

probabilities of winning a game.

(6) It must not be adversely affected by static

discharge or other electromagnetic interference.

(7) It must be capable of detecting and displaying the

following conditions during idle states or on demand: power

reset; door open; and door just closed.

(8) It must have the capacity to display complete play

history (outcome, intermediate play steps, credits

available, bets placed, credits paid, and credits cashed

out) for the most recent game played and 10 games prior

thereto.

(9) The theoretical payback percentage of a video

gaming terminal must not be capable of being changed

without making a hardware or software change in the video

gaming terminal, either on site or via the central

communications system.

(10) Video gaming terminals must be designed so that

replacement of parts or modules required for normal

maintenance does not necessitate replacement of the

electromechanical meters.

(11) It must have nonresettable meters housed in a

locked area of the terminal that keep a permanent record of

all cash inserted into the machine, all winnings made by

the terminal printer, credits played in for video gaming

terminals, and credits won by video gaming players. The

video gaming terminal must provide the means for on-demand

display of stored information as determined by the Board.

(12) Electronically stored meter information required

by this Section must be preserved for a minimum of 180 days

after a power loss to the service.

(13) It must have one or more mechanisms that accept

cash in the form of bills. The mechanisms shall be designed

to prevent obtaining credits without paying by stringing,

slamming, drilling, or other means. If such attempts at

physical tampering are made, the video gaming terminal

shall suspend itself from operating until reset.

(14) It shall have accounting software that keeps an

electronic record which includes, but is not limited to,

the following: total cash inserted into the video gaming

terminal; the value of winning tickets claimed by players;

the total credits played; the total credits awarded by a

video gaming terminal; and pay back percentage credited to

players of each video game.

(15) It shall be linked by a central communications

system to provide auditing program information as approved

by the Board. The central communications system shall use a

standard industry protocol, as defined by the Gaming

Standards Association, and shall have the functionality to

enable the Board or its designee to activate or deactivate

individual gaming devices from the central communications

system. In no event may the communications system approved

by the Board limit participation to only one manufacturer

of video gaming terminals by either the cost in

implementing the necessary program modifications to

communicate or the inability to communicate with the

central communications system.

(16) The Board, in its discretion, may require video

gaming terminals to display Amber Alert messages if the

Board makes a finding that it would be economically and

technically feasible and pose no risk to the integrity and

security of the central communications system and video

gaming terminals.

Licensed terminal handlers shall have access to video

gaming terminals, including, but not limited to, logic door

access, without the physical presence or supervision of the

Board or its agent to perform, in coordination with and with

project approval from the central communication system

provider:

(i) the clearing of the random access memory and

reprogramming of the video gaming terminal;

(ii) the installation of new video gaming terminal

software and software upgrades that have been approved by

the Board;

(iii) the placement, connection to the central

communication system, and go-live operation of video

gaming terminals at a licensed establishment, licensed

truck stop establishment, licensed large truck stop

establishment, licensed fraternal establishment, or

licensed veterans establishment;

(iv) the repair and maintenance of a video gaming

terminal located at a licensed establishment, licensed

truck stop establishment, licensed large truck stop

establishment, licensed fraternal establishment, or

licensed veterans establishment, including, but not

limited to, the replacement of the video gaming terminal

with a new video gaming terminal;

(v) the temporary movement, disconnection,

replacement, and reconnection of video gaming terminals to

allow for physical improvements and repairs at a licensed

establishment, licensed truck stop establishment, licensed

large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment, such as

replacement of flooring, interior repairs, and other

similar activities; and

(vi) such other functions as the Board may otherwise

authorize.

The Board shall, at a licensed terminal operator's expense,

cause all keys and other required devices to be provided to a

terminal operator necessary to allow the licensed terminal

handler access to the logic door to the terminal operator's

video gaming terminals.

The Board may adopt rules to establish additional criteria

to preserve the integrity and security of video gaming in this

State. The central communications system vendor may be licensed

as a video gaming terminal manufacturer or a video gaming

terminal distributor, or both, but in no event shall the

central communications system vendor be licensed as a video

gaming terminal operator.

The Board shall not permit the development of information

or the use by any licensee of gaming device or individual game

performance data. Nothing in this Act shall inhibit or prohibit

the Board from the use of gaming device or individual game

performance data in its regulatory duties. The Board shall

adopt rules to ensure that all licensees are treated and all

licensees act in a non-discriminatory manner and develop

processes and penalties to enforce those rules.

(Source: P.A. 98-31, eff. 6-24-13; 98-377, eff. 1-1-14; 98-582,

eff. 8-27-13; 98-756, eff. 7-16-14.)

(230 ILCS 40/20)

Sec. 20. Video gaming terminal payouts Direct dispensing of

receipt tickets only.

(a) A video gaming terminal may not directly dispense

coins, cash, tokens, or any other article of exchange or value

except for receipt tickets. Tickets shall be dispensed by

pressing the ticket dispensing button on the video gaming

terminal at the end of one's turn or play. The ticket shall

indicate the total amount of credits and the cash award, the

time of day in a 24-hour format showing hours and minutes, the

date, the terminal serial number, the sequential number of the

ticket, and an encrypted validation number from which the

validity of the prize may be determined. The player shall turn

in this ticket to the appropriate person at the licensed

establishment, licensed truck stop establishment, licensed

large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment to receive

the cash award.

(b) The cost of the credit shall be one cent, 5 cents, 10

cents, or 25 cents, or $1, and the maximum wager played per

hand shall not exceed $4 $2. No cash award for the maximum

wager on any individual hand shall exceed $1,199 $500. No cash

award for the maximum wager on a jackpot, progressive or

otherwise, shall exceed $10,000.

(c) In-location bonus jackpot games are hereby authorized.

The Board shall adopt emergency rules pursuant to Section 5-45

of the Illinois Administrative Procedure Act to implement this

subsection (c) within 90 days after the effective date of this

amendatory Act of the 101st General Assembly. Jackpot winnings

from in-location progressive games shall be paid by the

terminal operator to the player not later than 3 days after

winning such a jackpot.

(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)

(230 ILCS 40/25)

Sec. 25. Restriction of licensees.

(a) Manufacturer. A person may not be licensed as a

manufacturer of a video gaming terminal in Illinois unless the

person has a valid manufacturer's license issued under this

Act. A manufacturer may only sell video gaming terminals for

use in Illinois to persons having a valid distributor's

license.

(b) Distributor. A person may not sell, distribute, or

lease or market a video gaming terminal in Illinois unless the

person has a valid distributor's license issued under this Act.

A distributor may only sell video gaming terminals for use in

Illinois to persons having a valid distributor's or terminal

operator's license.

(c) Terminal operator. A person may not own, maintain, or

place a video gaming terminal unless he has a valid terminal

operator's license issued under this Act. A terminal operator

may only place video gaming terminals for use in Illinois in

licensed establishments, licensed truck stop establishments,

licensed large truck stop establishments, licensed fraternal

establishments, and licensed veterans establishments. No

terminal operator may give anything of value, including but not

limited to a loan or financing arrangement, to a licensed

establishment, licensed truck stop establishment, licensed

large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment as any

incentive or inducement to locate video terminals in that

establishment. Of the after-tax profits from a video gaming

terminal, 50% shall be paid to the terminal operator and 50%

shall be paid to the licensed establishment, licensed truck

stop establishment, licensed large truck stop establishment,

licensed fraternal establishment, or licensed veterans

establishment, notwithstanding any agreement to the contrary.

A video terminal operator that violates one or more

requirements of this subsection is guilty of a Class 4 felony

and is subject to termination of his or her license by the

Board.

(d) Licensed technician. A person may not service,

maintain, or repair a video gaming terminal in this State

unless he or she (1) has a valid technician's license issued

under this Act, (2) is a terminal operator, or (3) is employed

by a terminal operator, distributor, or manufacturer.

(d-5) Licensed terminal handler. No person, including, but

not limited to, an employee or independent contractor working

for a manufacturer, distributor, supplier, technician, or

terminal operator licensed pursuant to this Act, shall have

possession or control of a video gaming terminal, or access to

the inner workings of a video gaming terminal, unless that

person possesses a valid terminal handler's license issued

under this Act.

(e) Licensed establishment. No video gaming terminal may be

placed in any licensed establishment, licensed veterans

establishment, licensed truck stop establishment, licensed

large truck stop establishment, or licensed fraternal

establishment unless the owner or agent of the owner of the

licensed establishment, licensed veterans establishment,

licensed truck stop establishment, licensed large truck stop

establishment, or licensed fraternal establishment has entered

into a written use agreement with the terminal operator for

placement of the terminals. A copy of the use agreement shall

be on file in the terminal operator's place of business and

available for inspection by individuals authorized by the

Board. A licensed establishment, licensed truck stop

establishment, licensed veterans establishment, or licensed

fraternal establishment may operate up to 6 5 video gaming

terminals on its premises at any time. A licensed large truck

stop establishment may operate up to 10 video gaming terminals

on its premises at any time.

(f) (Blank).

(g) Financial interest restrictions. As used in this Act,

"substantial interest" in a partnership, a corporation, an

organization, an association, a business, or a limited

liability company means:

(A) When, with respect to a sole proprietorship, an

individual or his or her spouse owns, operates, manages, or

conducts, directly or indirectly, the organization,

association, or business, or any part thereof; or

(B) When, with respect to a partnership, the individual

or his or her spouse shares in any of the profits, or

potential profits, of the partnership activities; or

(C) When, with respect to a corporation, an individual

or his or her spouse is an officer or director, or the

individual or his or her spouse is a holder, directly or

beneficially, of 5% or more of any class of stock of the

corporation; or

(D) When, with respect to an organization not covered

in (A), (B) or (C) above, an individual or his or her

spouse is an officer or manages the business affairs, or

the individual or his or her spouse is the owner of or

otherwise controls 10% or more of the assets of the

organization; or

(E) When an individual or his or her spouse furnishes

5% or more of the capital, whether in cash, goods, or

services, for the operation of any business, association,

or organization during any calendar year; or

(F) When, with respect to a limited liability company,

an individual or his or her spouse is a member, or the

individual or his or her spouse is a holder, directly or

beneficially, of 5% or more of the membership interest of

the limited liability company.

For purposes of this subsection (g), "individual" includes

all individuals or their spouses whose combined interest would

qualify as a substantial interest under this subsection (g) and

whose activities with respect to an organization, association,

or business are so closely aligned or coordinated as to

constitute the activities of a single entity.

(h) Location restriction. A licensed establishment,

licensed truck stop establishment, licensed large truck stop

establishment, licensed fraternal establishment, or licensed

veterans establishment that is (i) located within 1,000 feet of

a facility operated by an organization licensee licensed under

the Illinois Horse Racing Act of 1975 or the home dock of a

riverboat licensed under the Illinois Riverboat Gambling Act or

(ii) located within 100 feet of a school or a place of worship

under the Religious Corporation Act, is ineligible to operate a

video gaming terminal. The location restrictions in this

subsection (h) do not apply if (A) a facility operated by an

organization licensee, a school, or a place of worship moves to

or is established within the restricted area after a licensed

establishment, licensed truck stop establishment, licensed

large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment becomes

licensed under this Act or (B) a school or place of worship

moves to or is established within the restricted area after a

licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment obtains its

original liquor license. For the purpose of this subsection,

"school" means an elementary or secondary public school, or an

elementary or secondary private school registered with or

recognized by the State Board of Education.

Notwithstanding the provisions of this subsection (h), the

Board may waive the requirement that a licensed establishment,

licensed truck stop establishment, licensed large truck stop

establishment, licensed fraternal establishment, or licensed

veterans establishment not be located within 1,000 feet from a

facility operated by an organization licensee licensed under

the Illinois Horse Racing Act of 1975 or the home dock of a

riverboat licensed under the Illinois Riverboat Gambling Act.

The Board shall not grant such waiver if there is any common

ownership or control, shared business activity, or contractual

arrangement of any type between the establishment and the

organization licensee or owners licensee of a riverboat. The

Board shall adopt rules to implement the provisions of this

paragraph.

(h-5) Restrictions on licenses in malls. The Board shall

not grant an application to become a licensed video gaming

location if the Board determines that granting the application

would more likely than not cause a terminal operator,

individually or in combination with other terminal operators,

licensed video gaming location, or other person or entity, to

operate the video gaming terminals in 2 or more licensed video

gaming locations as a single video gaming operation.

(1) In making determinations under this subsection

(h-5), factors to be considered by the Board shall include,

but not be limited to, the following:

(A) the physical aspects of the location;

(B) the ownership, control, or management of the

location;

(C) any arrangements, understandings, or

agreements, written or otherwise, among or involving

any persons or entities that involve the conducting of

any video gaming business or the sharing of costs or

revenues; and

(D) the manner in which any terminal operator or

other related entity markets, advertises, or otherwise

describes any location or locations to any other person

or entity or to the public.

(2) The Board shall presume, subject to rebuttal, that

the granting of an application to become a licensed video

gaming location within a mall will cause a terminal

operator, individually or in combination with other

persons or entities, to operate the video gaming terminals

in 2 or more licensed video gaming locations as a single

video gaming operation if the Board determines that

granting the license would create a local concentration of

licensed video gaming locations.

For the purposes of this subsection (h-5):

"Mall" means a building, or adjoining or connected

buildings, containing 4 or more separate locations.

"Video gaming operation" means the conducting of video

gaming and all related activities.

"Location" means a space within a mall containing a

separate business, a place for a separate business, or a place

subject to a separate leasing arrangement by the mall owner.

"Licensed video gaming location" means a licensed

establishment, licensed fraternal establishment, licensed

veterans establishment, licensed truck stop establishment, or

licensed large truck stop.

"Local concentration of licensed video gaming locations"

means that the combined number of licensed video gaming

locations within a mall exceed half of the separate locations

within the mall.

(i) Undue economic concentration. In addition to

considering all other requirements under this Act, in deciding

whether to approve the operation of video gaming terminals by a

terminal operator in a location, the Board shall consider the

impact of any economic concentration of such operation of video

gaming terminals. The Board shall not allow a terminal operator

to operate video gaming terminals if the Board determines such

operation will result in undue economic concentration. For

purposes of this Section, "undue economic concentration" means

that a terminal operator would have such actual or potential

influence over video gaming terminals in Illinois as to:

(1) substantially impede or suppress competition among

terminal operators;

(2) adversely impact the economic stability of the

video gaming industry in Illinois; or

(3) negatively impact the purposes of the Video Gaming

Act.

The Board shall adopt rules concerning undue economic

concentration with respect to the operation of video gaming

terminals in Illinois. The rules shall include, but not be

limited to, (i) limitations on the number of video gaming

terminals operated by any terminal operator within a defined

geographic radius and (ii) guidelines on the discontinuation of

operation of any such video gaming terminals the Board

determines will cause undue economic concentration.

(j) The provisions of the Illinois Antitrust Act are fully

and equally applicable to the activities of any licensee under

this Act.

(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,

eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)

(230 ILCS 40/30)

Sec. 30. Multiple types of licenses prohibited. A video

gaming terminal manufacturer may not be licensed as a video

gaming terminal operator or own, manage, or control a licensed

establishment, licensed truck stop establishment, licensed

large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment, and shall

be licensed to sell only to persons having a valid

distributor's license or, if the manufacturer also holds a

valid distributor's license, to sell, distribute, lease, or

market to persons having a valid terminal operator's license. A

video gaming terminal distributor may not be licensed as a

video gaming terminal operator or own, manage, or control a

licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment, and shall

only contract with a licensed terminal operator. A video gaming

terminal operator may not be licensed as a video gaming

terminal manufacturer or distributor or own, manage, or control

a licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment, and shall

be licensed only to contract with licensed distributors and

licensed establishments, licensed truck stop establishments,

licensed large truck stop establishments, licensed fraternal

establishments, and licensed veterans establishments. An owner

or manager of a licensed establishment, licensed truck stop

establishment, licensed large truck stop establishment,

licensed fraternal establishment, or licensed veterans

establishment may not be licensed as a video gaming terminal

manufacturer, distributor, or operator, and shall only

contract with a licensed operator to place and service this

equipment.

(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)

(230 ILCS 40/35)

Sec. 35. Display of license; confiscation; violation as

felony.

(a) Each video gaming terminal shall be licensed by the

Board before placement or operation on the premises of a

licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment. The license

of each video gaming terminal shall be maintained at the

location where the video gaming terminal is operated. Failure

to do so is a petty offense with a fine not to exceed $100. Any

licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment used for the

conduct of gambling games in violation of this Act shall be

considered a gambling place in violation of Section 28-3 of the

Criminal Code of 2012. Every gambling device found in a

licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment operating

gambling games in violation of this Act shall be subject to

seizure, confiscation, and destruction as provided in Section

28-5 of the Criminal Code of 2012. Any license issued under the

Liquor Control Act of 1934 to any owner or operator of a

licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment that

operates or permits the operation of a video gaming terminal

within its establishment in violation of this Act shall be

immediately revoked. No person may own, operate, have in his or

her possession or custody or under his or her control, or

permit to be kept in any place under his or her possession or

control, any device that awards credits and contains a circuit,

meter, or switch capable of removing and recording the removal

of credits when the award of credits is dependent upon chance.

Nothing in this Section shall be deemed to prohibit the use

of a game device only if the game device is used in an activity

that is not gambling under subsection (b) of Section 28-1 of

the Criminal Code of 2012.

A violation of this Section is a Class 4 felony. All

devices that are owned, operated, or possessed in violation of

this Section are hereby declared to be public nuisances and

shall be subject to seizure, confiscation, and destruction as

provided in Section 28-5 of the Criminal Code of 2012.

The provisions of this Section do not apply to devices or

electronic video game terminals licensed pursuant to this Act.

A video gaming terminal operated for amusement only and bearing

a valid amusement tax sticker shall not be subject to this

Section until 30 days after the Board establishes that the

central communications system is functional.

(b) (1) The odds of winning each video game shall be posted

on or near each video gaming terminal. The manner in which the

odds are calculated and how they are posted shall be determined

by the Board by rule.

(2) No video gaming terminal licensed under this Act may be

played except during the legal hours of operation allowed for

the consumption of alcoholic beverages at the licensed

establishment, licensed fraternal establishment, or licensed

veterans establishment. A licensed establishment, licensed

fraternal establishment, or licensed veterans establishment

that violates this subsection is subject to termination of its

license by the Board.

(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)

(230 ILCS 40/45)

Sec. 45. Issuance of license.

(a) The burden is upon each applicant to demonstrate his

suitability for licensure. Each video gaming terminal

manufacturer, distributor, supplier, operator, handler,

licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed fraternal

establishment, and licensed veterans establishment shall be

licensed by the Board. The Board may issue or deny a license

under this Act to any person pursuant to the same criteria set

forth in Section 9 of the Illinois Riverboat Gambling Act.

(a-5) The Board shall not grant a license to a person who

has facilitated, enabled, or participated in the use of

coin-operated devices for gambling purposes or who is under the

significant influence or control of such a person. For the

purposes of this Act, "facilitated, enabled, or participated in

the use of coin-operated amusement devices for gambling

purposes" means that the person has been convicted of any

violation of Article 28 of the Criminal Code of 1961 or the

Criminal Code of 2012. If there is pending legal action against

a person for any such violation, then the Board shall delay the

licensure of that person until the legal action is resolved.

(b) Each person seeking and possessing a license as a video

gaming terminal manufacturer, distributor, supplier, operator,

handler, licensed establishment, licensed truck stop

establishment, licensed large truck stop establishment,

licensed fraternal establishment, or licensed veterans

establishment shall submit to a background investigation

conducted by the Board with the assistance of the State Police

or other law enforcement. To the extent that the corporate

structure of the applicant allows, the background

investigation shall include any or all of the following as the

Board deems appropriate or as provided by rule for each

category of licensure: (i) each beneficiary of a trust, (ii)

each partner of a partnership, (iii) each member of a limited

liability company, (iv) each director and officer of a publicly

or non-publicly held corporation, (v) each stockholder of a

non-publicly held corporation, (vi) each stockholder of 5% or

more of a publicly held corporation, or (vii) each stockholder

of 5% or more in a parent or subsidiary corporation.

(c) Each person seeking and possessing a license as a video

gaming terminal manufacturer, distributor, supplier, operator,

handler, licensed establishment, licensed truck stop

establishment, licensed large truck stop establishment,

licensed fraternal establishment, or licensed veterans

establishment shall disclose the identity of every person,

association, trust, corporation, or limited liability company

having a greater than 1% direct or indirect pecuniary interest

in the video gaming terminal operation for which the license is

sought. If the disclosed entity is a trust, the application

shall disclose the names and addresses of the beneficiaries; if

a corporation, the names and addresses of all stockholders and

directors; if a limited liability company, the names and

addresses of all members; or if a partnership, the names and

addresses of all partners, both general and limited.

(d) No person may be licensed as a video gaming terminal

manufacturer, distributor, supplier, operator, handler,

licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment if that

person has been found by the Board to:

(1) have a background, including a criminal record,

reputation, habits, social or business associations, or

prior activities that pose a threat to the public interests

of the State or to the security and integrity of video

gaming;

(2) create or enhance the dangers of unsuitable,

unfair, or illegal practices, methods, and activities in

the conduct of video gaming; or

(3) present questionable business practices and

financial arrangements incidental to the conduct of video

gaming activities.

(e) Any applicant for any license under this Act has the

burden of proving his or her qualifications to the satisfaction

of the Board. The Board may adopt rules to establish additional

qualifications and requirements to preserve the integrity and

security of video gaming in this State.

(f) A non-refundable application fee shall be paid at the

time an application for a license is filed with the Board in

the following amounts:

(1) Manufacturer..........................$5,000

(2) Distributor...........................$5,000

(3) Terminal operator.....................$5,000

(4) Supplier..............................$2,500

(5) Technician..............................$100

(6) Terminal Handler........................$100

(7) Licensed establishment, licensed truck stop

establishment, licensed large truck stop establishment,

licensed fraternal establishment, or licensed

veterans establishment...............................$100

(g) The Board shall establish an annual fee for each

license not to exceed the following:

(1) Manufacturer.........................$10,000

(2) Distributor..........................$10,000

(3) Terminal operator.....................$5,000

(4) Supplier..............................$2,000

(5) Technician..............................$100

(6) Licensed establishment, licensed truck stop

establishment, licensed large truck stop establishment,

licensed fraternal establishment, or licensed

veterans establishment..........................$100

(7) Video gaming terminal...................$100

(8) Terminal Handler............................$100

(h) A terminal operator and a licensed establishment,

licensed truck stop establishment, licensed large truck stop

establishment, licensed fraternal establishment, or licensed

veterans establishment shall equally split the fees specified

in item (7) of subsection (g).

(Source: P.A. 100-1152, eff. 12-14-18.)

(230 ILCS 40/55)

Sec. 55. Precondition for licensed location. In all cases

of application for a licensed location, to operate a video

gaming terminal, each licensed establishment, licensed

fraternal establishment, or licensed veterans establishment

shall possess a valid liquor license issued by the Illinois

Liquor Control Commission in effect at the time of application

and at all times thereafter during which a video gaming

terminal is made available to the public for play at that

location. Video gaming terminals in a licensed location shall

be operated only during the same hours of operation generally

permitted to holders of a license under the Liquor Control Act

of 1934 within the unit of local government in which they are

located. A licensed truck stop establishment or licensed large

truck stop establishment that does not hold a liquor license

may operate video gaming terminals on a continuous basis. A

licensed fraternal establishment or licensed veterans

establishment that does not hold a liquor license may operate

video gaming terminals if (i) the establishment is located in a

county with a population between 6,500 and 7,000, based on the

2000 U.S. Census, (ii) the county prohibits by ordinance the

sale of alcohol, and (iii) the establishment is in a portion of

the county where the sale of alcohol is prohibited. A licensed

fraternal establishment or licensed veterans establishment

that does not hold a liquor license may operate video gaming

terminals if (i) the establishment is located in a municipality

within a county with a population between 8,500 and 9,000 based

on the 2000 U.S. Census and (ii) the municipality or county

prohibits or limits the sale of alcohol by ordinance in a way

that prohibits the establishment from selling alcohol.

(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;

97-594, eff. 8-26-11.)

(230 ILCS 40/58)

Sec. 58. Location of terminals. Video gaming terminals

must be located in an area restricted to persons over 21 years

of age the entrance to which is within the view of at least one

employee, who is over 21 years of age, of the establishment in

which they are located. The placement of video gaming terminals

in licensed establishments, licensed truck stop

establishments, licensed large truck stop establishments,

licensed fraternal establishments, and licensed veterans

establishments shall be subject to the rules promulgated by the

Board pursuant to the Illinois Administrative Procedure Act.

(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)

(230 ILCS 40/60)

Sec. 60. Imposition and distribution of tax.

(a) A tax of 30% is imposed on net terminal income and

shall be collected by the Board.

(b) Of the tax collected under this subsection (a) Section,

five-sixths shall be deposited into the Capital Projects Fund

and one-sixth shall be deposited into the Local Government

Video Gaming Distributive Fund.

(b) Beginning on July 1, 2019, an additional tax of 3% is

imposed on net terminal income and shall be collected by the

Board.

Beginning on July 1, 2020, an additional tax of 1% is

imposed on net terminal income and shall be collected by the

Board.

The tax collected under this subsection (b) shall be

deposited into the Capital Projects Fund.

(c) Revenues generated from the play of video gaming

terminals shall be deposited by the terminal operator, who is

responsible for tax payments, in a specially created, separate

bank account maintained by the video gaming terminal operator

to allow for electronic fund transfers of moneys for tax

payment.

(d) Each licensed establishment, licensed truck stop

establishment, licensed large truck stop establishment,

licensed fraternal establishment, and licensed veterans

establishment shall maintain an adequate video gaming fund,

with the amount to be determined by the Board.

(e) The State's percentage of net terminal income shall be

reported and remitted to the Board within 15 days after the

15th day of each month and within 15 days after the end of each

month by the video terminal operator. A video terminal operator

who falsely reports or fails to report the amount due required

by this Section is guilty of a Class 4 felony and is subject to

termination of his or her license by the Board. Each video

terminal operator shall keep a record of net terminal income in

such form as the Board may require. All payments not remitted

when due shall be paid together with a penalty assessment on

the unpaid balance at a rate of 1.5% per month.

(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)

(230 ILCS 40/79)

Sec. 79. Investigators. Investigators appointed by the

Board pursuant to the powers conferred upon the Board by

paragraph (20.6) of subsection (c) of Section 5 of the Illinois

Riverboat Gambling Act and Section 80 of this Act shall have

authority to conduct investigations, searches, seizures,

arrests, and other duties imposed under this Act and the

Illinois Riverboat Gambling Act, as deemed necessary by the

Board. These investigators have and may exercise all of the

rights and powers of peace officers, provided that these powers

shall be (1) limited to offenses or violations occurring or

committed in connection with conduct subject to this Act,

including, but not limited to, the manufacture, distribution,

supply, operation, placement, service, maintenance, or play of

video gaming terminals and the distribution of profits and

collection of revenues resulting from such play, and (2)

exercised, to the fullest extent practicable, in cooperation

with the local police department of the applicable municipality

or, if these powers are exercised outside the boundaries of an

incorporated municipality or within a municipality that does

not have its own police department, in cooperation with the

police department whose jurisdiction encompasses the

applicable locality.

(Source: P.A. 97-809, eff. 7-13-12.)

(230 ILCS 40/80)

Sec. 80. Applicability of Illinois Riverboat Gambling Act.

The provisions of the Illinois Riverboat Gambling Act, and all

rules promulgated thereunder, shall apply to the Video Gaming

Act, except where there is a conflict between the 2 Acts. In

the event of a conflict between the 2 Acts, the provisions of

the Illinois Gambling Act shall prevail. All current supplier

licensees under the Illinois Riverboat Gambling Act shall be

entitled to licensure under the Video Gaming Act as

manufacturers, distributors, or suppliers without additional

Board investigation or approval, except by vote of the Board;

however, they are required to pay application and annual fees

under this Act. All provisions of the Uniform Penalty and

Interest Act shall apply, as far as practicable, to the subject

matter of this Act to the same extent as if such provisions

were included herein.

(Source: P.A. 100-1152, eff. 12-14-18.)

Section 35-65. The Liquor Control Act of 1934 is amended by

changing Sections 5-1 and 6-30 as follows:

(235 ILCS 5/5-1) (from Ch. 43, par. 115)

Sec. 5-1. Licenses issued by the Illinois Liquor Control

Commission shall be of the following classes:

(a) Manufacturer's license - Class 1. Distiller, Class 2.

Rectifier, Class 3. Brewer, Class 4. First Class Wine

Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.

First Class Winemaker, Class 7. Second Class Winemaker, Class

8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class

10. Class 1 Brewer, Class 11. Class 2 Brewer,

(b) Distributor's license,

(c) Importing Distributor's license,

(d) Retailer's license,

(e) Special Event Retailer's license (not-for-profit),

(f) Railroad license,

(g) Boat license,

(h) Non-Beverage User's license,

(i) Wine-maker's premises license,

(j) Airplane license,

(k) Foreign importer's license,

(l) Broker's license,

(m) Non-resident dealer's license,

(n) Brew Pub license,

(o) Auction liquor license,

(p) Caterer retailer license,

(q) Special use permit license,

(r) Winery shipper's license,

(s) Craft distiller tasting permit,

(t) Brewer warehouse permit.

No person, firm, partnership, corporation, or other legal

business entity that is engaged in the manufacturing of wine

may concurrently obtain and hold a wine-maker's license and a

wine manufacturer's license.

(a) A manufacturer's license shall allow the manufacture,

importation in bulk, storage, distribution and sale of

alcoholic liquor to persons without the State, as may be

permitted by law and to licensees in this State as follows:

Class 1. A Distiller may make sales and deliveries of

alcoholic liquor to distillers, rectifiers, importing

distributors, distributors and non-beverage users and to no

other licensees.

Class 2. A Rectifier, who is not a distiller, as defined

herein, may make sales and deliveries of alcoholic liquor to

rectifiers, importing distributors, distributors, retailers

and non-beverage users and to no other licensees.

Class 3. A Brewer may make sales and deliveries of beer to

importing distributors and distributors and may make sales as

authorized under subsection (e) of Section 6-4 of this Act.

Class 4. A first class wine-manufacturer may make sales and

deliveries of up to 50,000 gallons of wine to manufacturers,

importing distributors and distributors, and to no other

licensees.

Class 5. A second class Wine manufacturer may make sales

and deliveries of more than 50,000 gallons of wine to

manufacturers, importing distributors and distributors and to

no other licensees.

Class 6. A first-class wine-maker's license shall allow the

manufacture of up to 50,000 gallons of wine per year, and the

storage and sale of such wine to distributors in the State and

to persons without the State, as may be permitted by law. A

person who, prior to June 1, 2008 (the effective date of Public

Act 95-634), is a holder of a first-class wine-maker's license

and annually produces more than 25,000 gallons of its own wine

and who distributes its wine to licensed retailers shall cease

this practice on or before July 1, 2008 in compliance with

Public Act 95-634.

Class 7. A second-class wine-maker's license shall allow

the manufacture of between 50,000 and 150,000 gallons of wine

per year, and the storage and sale of such wine to distributors

in this State and to persons without the State, as may be

permitted by law. A person who, prior to June 1, 2008 (the

effective date of Public Act 95-634), is a holder of a

second-class wine-maker's license and annually produces more

than 25,000 gallons of its own wine and who distributes its

wine to licensed retailers shall cease this practice on or

before July 1, 2008 in compliance with Public Act 95-634.

Class 8. A limited wine-manufacturer may make sales and

deliveries not to exceed 40,000 gallons of wine per year to

distributors, and to non-licensees in accordance with the

provisions of this Act.

Class 9. A craft distiller license shall allow the

manufacture of up to 100,000 gallons of spirits by distillation

per year and the storage of such spirits. If a craft distiller

licensee, including a craft distiller licensee who holds more

than one craft distiller license, is not affiliated with any

other manufacturer of spirits, then the craft distiller

licensee may sell such spirits to distributors in this State

and up to 2,500 gallons of such spirits to non-licensees to the

extent permitted by any exemption approved by the Commission

pursuant to Section 6-4 of this Act. A craft distiller license

holder may store such spirits at a non-contiguous licensed

location, but at no time shall a craft distiller license holder

directly or indirectly produce in the aggregate more than

100,000 gallons of spirits per year.

A craft distiller licensee may hold more than one craft

distiller's license. However, a craft distiller that holds more

than one craft distiller license shall not manufacture, in the

aggregate, more than 100,000 gallons of spirits by distillation

per year and shall not sell, in the aggregate, more than 2,500

gallons of such spirits to non-licensees in accordance with an

exemption approved by the State Commission pursuant to Section

6-4 of this Act.

Any craft distiller licensed under this Act who on July 28,

2010 (the effective date of Public Act 96-1367) was licensed as

a distiller and manufactured no more spirits than permitted by

this Section shall not be required to pay the initial licensing

fee.

Class 10. A class 1 brewer license, which may only be

issued to a licensed brewer or licensed non-resident dealer,

shall allow the manufacture of up to 930,000 gallons of beer

per year provided that the class 1 brewer licensee does not

manufacture more than a combined 930,000 gallons of beer per

year and is not a member of or affiliated with, directly or

indirectly, a manufacturer that produces more than 930,000

gallons of beer per year or any other alcoholic liquor. A class

1 brewer licensee may make sales and deliveries to importing

distributors and distributors and to retail licensees in

accordance with the conditions set forth in paragraph (18) of

subsection (a) of Section 3-12 of this Act. If the State

Commission provides prior approval, a class 1 brewer may

annually transfer up to 930,000 gallons of beer manufactured by

that class 1 brewer to the premises of a licensed class 1

brewer wholly owned and operated by the same licensee.

Class 11. A class 2 brewer license, which may only be

issued to a licensed brewer or licensed non-resident dealer,

shall allow the manufacture of up to 3,720,000 gallons of beer

per year provided that the class 2 brewer licensee does not

manufacture more than a combined 3,720,000 gallons of beer per

year and is not a member of or affiliated with, directly or

indirectly, a manufacturer that produces more than 3,720,000

gallons of beer per year or any other alcoholic liquor. A class

2 brewer licensee may make sales and deliveries to importing

distributors and distributors, but shall not make sales or

deliveries to any other licensee. If the State Commission

provides prior approval, a class 2 brewer licensee may annually

transfer up to 3,720,000 gallons of beer manufactured by that

class 2 brewer licensee to the premises of a licensed class 2

brewer wholly owned and operated by the same licensee.

A class 2 brewer may transfer beer to a brew pub wholly

owned and operated by the class 2 brewer subject to the

following limitations and restrictions: (i) the transfer shall

not annually exceed more than 31,000 gallons; (ii) the annual

amount transferred shall reduce the brew pub's annual permitted

production limit; (iii) all beer transferred shall be subject

to Article VIII of this Act; (iv) a written record shall be

maintained by the brewer and brew pub specifying the amount,

date of delivery, and receipt of the product by the brew pub;

and (v) the brew pub shall be located no farther than 80 miles

from the class 2 brewer's licensed location.

A class 2 brewer shall, prior to transferring beer to a

brew pub wholly owned by the class 2 brewer, furnish a written

notice to the State Commission of intent to transfer beer

setting forth the name and address of the brew pub and shall

annually submit to the State Commission a verified report

identifying the total gallons of beer transferred to the brew

pub wholly owned by the class 2 brewer.

(a-1) A manufacturer which is licensed in this State to

make sales or deliveries of alcoholic liquor to licensed

distributors or importing distributors and which enlists

agents, representatives, or individuals acting on its behalf

who contact licensed retailers on a regular and continual basis

in this State must register those agents, representatives, or

persons acting on its behalf with the State Commission.

Registration of agents, representatives, or persons acting

on behalf of a manufacturer is fulfilled by submitting a form

to the Commission. The form shall be developed by the

Commission and shall include the name and address of the

applicant, the name and address of the manufacturer he or she

represents, the territory or areas assigned to sell to or

discuss pricing terms of alcoholic liquor, and any other

questions deemed appropriate and necessary. All statements in

the forms required to be made by law or by rule shall be deemed

material, and any person who knowingly misstates any material

fact under oath in an application is guilty of a Class B

misdemeanor. Fraud, misrepresentation, false statements,

misleading statements, evasions, or suppression of material

facts in the securing of a registration are grounds for

suspension or revocation of the registration. The State

Commission shall post a list of registered agents on the

Commission's website.

(b) A distributor's license shall allow the wholesale

purchase and storage of alcoholic liquors and sale of alcoholic

liquors to licensees in this State and to persons without the

State, as may be permitted by law, and the sale of beer, cider,

or both beer and cider to brewers, class 1 brewers, and class 2

brewers that, pursuant to subsection (e) of Section 6-4 of this

Act, sell beer, cider, or both beer and cider to non-licensees

at their breweries. No person licensed as a distributor shall

be granted a non-resident dealer's license.

(c) An importing distributor's license may be issued to and

held by those only who are duly licensed distributors, upon the

filing of an application by a duly licensed distributor, with

the Commission and the Commission shall, without the payment of

any fee, immediately issue such importing distributor's

license to the applicant, which shall allow the importation of

alcoholic liquor by the licensee into this State from any point

in the United States outside this State, and the purchase of

alcoholic liquor in barrels, casks or other bulk containers and

the bottling of such alcoholic liquors before resale thereof,

but all bottles or containers so filled shall be sealed,

labeled, stamped and otherwise made to comply with all

provisions, rules and regulations governing manufacturers in

the preparation and bottling of alcoholic liquors. The

importing distributor's license shall permit such licensee to

purchase alcoholic liquor from Illinois licensed non-resident

dealers and foreign importers only. No person licensed as an

importing distributor shall be granted a non-resident dealer's

license.

(d) A retailer's license shall allow the licensee to sell

and offer for sale at retail, only in the premises specified in

the license, alcoholic liquor for use or consumption, but not

for resale in any form. Nothing in Public Act 95-634 shall

deny, limit, remove, or restrict the ability of a holder of a

retailer's license to transfer, deliver, or ship alcoholic

liquor to the purchaser for use or consumption subject to any

applicable local law or ordinance. Any retail license issued to

a manufacturer shall only permit the manufacturer to sell beer

at retail on the premises actually occupied by the

manufacturer. For the purpose of further describing the type of

business conducted at a retail licensed premises, a retailer's

licensee may be designated by the State Commission as (i) an on

premise consumption retailer, (ii) an off premise sale

retailer, or (iii) a combined on premise consumption and off

premise sale retailer.

Notwithstanding any other provision of this subsection

(d), a retail licensee may sell alcoholic liquors to a special

event retailer licensee for resale to the extent permitted

under subsection (e).

(e) A special event retailer's license (not-for-profit)

shall permit the licensee to purchase alcoholic liquors from an

Illinois licensed distributor (unless the licensee purchases

less than $500 of alcoholic liquors for the special event, in

which case the licensee may purchase the alcoholic liquors from

a licensed retailer) and shall allow the licensee to sell and

offer for sale, at retail, alcoholic liquors for use or

consumption, but not for resale in any form and only at the

location and on the specific dates designated for the special

event in the license. An applicant for a special event retailer

license must (i) furnish with the application: (A) a resale

number issued under Section 2c of the Retailers' Occupation Tax

Act or evidence that the applicant is registered under Section

2a of the Retailers' Occupation Tax Act, (B) a current, valid

exemption identification number issued under Section 1g of the

Retailers' Occupation Tax Act, and a certification to the

Commission that the purchase of alcoholic liquors will be a

tax-exempt purchase, or (C) a statement that the applicant is

not registered under Section 2a of the Retailers' Occupation

Tax Act, does not hold a resale number under Section 2c of the

Retailers' Occupation Tax Act, and does not hold an exemption

number under Section 1g of the Retailers' Occupation Tax Act,

in which event the Commission shall set forth on the special

event retailer's license a statement to that effect; (ii)

submit with the application proof satisfactory to the State

Commission that the applicant will provide dram shop liability

insurance in the maximum limits; and (iii) show proof

satisfactory to the State Commission that the applicant has

obtained local authority approval.

Nothing in this Act prohibits an Illinois licensed

distributor from offering credit or a refund for unused,

salable alcoholic liquors to a holder of a special event

retailer's license or from the special event retailer's

licensee from accepting the credit or refund of alcoholic

liquors at the conclusion of the event specified in the

license.

(f) A railroad license shall permit the licensee to import

alcoholic liquors into this State from any point in the United

States outside this State and to store such alcoholic liquors

in this State; to make wholesale purchases of alcoholic liquors

directly from manufacturers, foreign importers, distributors

and importing distributors from within or outside this State;

and to store such alcoholic liquors in this State; provided

that the above powers may be exercised only in connection with

the importation, purchase or storage of alcoholic liquors to be

sold or dispensed on a club, buffet, lounge or dining car

operated on an electric, gas or steam railway in this State;

and provided further, that railroad licensees exercising the

above powers shall be subject to all provisions of Article VIII

of this Act as applied to importing distributors. A railroad

license shall also permit the licensee to sell or dispense

alcoholic liquors on any club, buffet, lounge or dining car

operated on an electric, gas or steam railway regularly

operated by a common carrier in this State, but shall not

permit the sale for resale of any alcoholic liquors to any

licensee within this State. A license shall be obtained for

each car in which such sales are made.

(g) A boat license shall allow the sale of alcoholic liquor

in individual drinks, on any passenger boat regularly operated

as a common carrier on navigable waters in this State or on any

riverboat operated under the Illinois Riverboat Gambling Act,

which boat or riverboat maintains a public dining room or

restaurant thereon.

(h) A non-beverage user's license shall allow the licensee

to purchase alcoholic liquor from a licensed manufacturer or

importing distributor, without the imposition of any tax upon

the business of such licensed manufacturer or importing

distributor as to such alcoholic liquor to be used by such

licensee solely for the non-beverage purposes set forth in

subsection (a) of Section 8-1 of this Act, and such licenses

shall be divided and classified and shall permit the purchase,

possession and use of limited and stated quantities of

alcoholic liquor as follows:

Class 1, not to exceed ......................... 500 gallons

Class 2, not to exceed ....................... 1,000 gallons

Class 3, not to exceed ....................... 5,000 gallons

Class 4, not to exceed ...................... 10,000 gallons

Class 5, not to exceed ....................... 50,000 gallons

(i) A wine-maker's premises license shall allow a licensee

that concurrently holds a first-class wine-maker's license to

sell and offer for sale at retail in the premises specified in

such license not more than 50,000 gallons of the first-class

wine-maker's wine that is made at the first-class wine-maker's

licensed premises per year for use or consumption, but not for

resale in any form. A wine-maker's premises license shall allow

a licensee who concurrently holds a second-class wine-maker's

license to sell and offer for sale at retail in the premises

specified in such license up to 100,000 gallons of the

second-class wine-maker's wine that is made at the second-class

wine-maker's licensed premises per year for use or consumption

but not for resale in any form. A wine-maker's premises license

shall allow a licensee that concurrently holds a first-class

wine-maker's license or a second-class wine-maker's license to

sell and offer for sale at retail at the premises specified in

the wine-maker's premises license, for use or consumption but

not for resale in any form, any beer, wine, and spirits

purchased from a licensed distributor. Upon approval from the

State Commission, a wine-maker's premises license shall allow

the licensee to sell and offer for sale at (i) the wine-maker's

licensed premises and (ii) at up to 2 additional locations for

use and consumption and not for resale. Each location shall

require additional licensing per location as specified in

Section 5-3 of this Act. A wine-maker's premises licensee shall

secure liquor liability insurance coverage in an amount at

least equal to the maximum liability amounts set forth in

subsection (a) of Section 6-21 of this Act.

(j) An airplane license shall permit the licensee to import

alcoholic liquors into this State from any point in the United

States outside this State and to store such alcoholic liquors

in this State; to make wholesale purchases of alcoholic liquors

directly from manufacturers, foreign importers, distributors

and importing distributors from within or outside this State;

and to store such alcoholic liquors in this State; provided

that the above powers may be exercised only in connection with

the importation, purchase or storage of alcoholic liquors to be

sold or dispensed on an airplane; and provided further, that

airplane licensees exercising the above powers shall be subject

to all provisions of Article VIII of this Act as applied to

importing distributors. An airplane licensee shall also permit

the sale or dispensing of alcoholic liquors on any passenger

airplane regularly operated by a common carrier in this State,

but shall not permit the sale for resale of any alcoholic

liquors to any licensee within this State. A single airplane

license shall be required of an airline company if liquor

service is provided on board aircraft in this State. The annual

fee for such license shall be as determined in Section 5-3.

(k) A foreign importer's license shall permit such licensee

to purchase alcoholic liquor from Illinois licensed

non-resident dealers only, and to import alcoholic liquor other

than in bulk from any point outside the United States and to

sell such alcoholic liquor to Illinois licensed importing

distributors and to no one else in Illinois; provided that (i)

the foreign importer registers with the State Commission every

brand of alcoholic liquor that it proposes to sell to Illinois

licensees during the license period, (ii) the foreign importer

complies with all of the provisions of Section 6-9 of this Act

with respect to registration of such Illinois licensees as may

be granted the right to sell such brands at wholesale, and

(iii) the foreign importer complies with the provisions of

Sections 6-5 and 6-6 of this Act to the same extent that these

provisions apply to manufacturers.

(l) (i) A broker's license shall be required of all persons

who solicit orders for, offer to sell or offer to supply

alcoholic liquor to retailers in the State of Illinois, or who

offer to retailers to ship or cause to be shipped or to make

contact with distillers, rectifiers, brewers or manufacturers

or any other party within or without the State of Illinois in

order that alcoholic liquors be shipped to a distributor,

importing distributor or foreign importer, whether such

solicitation or offer is consummated within or without the

State of Illinois.

No holder of a retailer's license issued by the Illinois

Liquor Control Commission shall purchase or receive any

alcoholic liquor, the order for which was solicited or offered

for sale to such retailer by a broker unless the broker is the

holder of a valid broker's license.

The broker shall, upon the acceptance by a retailer of the

broker's solicitation of an order or offer to sell or supply or

deliver or have delivered alcoholic liquors, promptly forward

to the Illinois Liquor Control Commission a notification of

said transaction in such form as the Commission may by

regulations prescribe.

(ii) A broker's license shall be required of a person

within this State, other than a retail licensee, who, for a fee

or commission, promotes, solicits, or accepts orders for

alcoholic liquor, for use or consumption and not for resale, to

be shipped from this State and delivered to residents outside

of this State by an express company, common carrier, or

contract carrier. This Section does not apply to any person who

promotes, solicits, or accepts orders for wine as specifically

authorized in Section 6-29 of this Act.

A broker's license under this subsection (l) shall not

entitle the holder to buy or sell any alcoholic liquors for his

own account or to take or deliver title to such alcoholic

liquors.

This subsection (l) shall not apply to distributors,

employees of distributors, or employees of a manufacturer who

has registered the trademark, brand or name of the alcoholic

liquor pursuant to Section 6-9 of this Act, and who regularly

sells such alcoholic liquor in the State of Illinois only to

its registrants thereunder.

Any agent, representative, or person subject to

registration pursuant to subsection (a-1) of this Section shall

not be eligible to receive a broker's license.

(m) A non-resident dealer's license shall permit such

licensee to ship into and warehouse alcoholic liquor into this

State from any point outside of this State, and to sell such

alcoholic liquor to Illinois licensed foreign importers and

importing distributors and to no one else in this State;

provided that (i) said non-resident dealer shall register with

the Illinois Liquor Control Commission each and every brand of

alcoholic liquor which it proposes to sell to Illinois

licensees during the license period, (ii) it shall comply with

all of the provisions of Section 6-9 hereof with respect to

registration of such Illinois licensees as may be granted the

right to sell such brands at wholesale by duly filing such

registration statement, thereby authorizing the non-resident

dealer to proceed to sell such brands at wholesale, and (iii)

the non-resident dealer shall comply with the provisions of

Sections 6-5 and 6-6 of this Act to the same extent that these

provisions apply to manufacturers. No person licensed as a

non-resident dealer shall be granted a distributor's or

importing distributor's license.

(n) A brew pub license shall allow the licensee to only (i)

manufacture up to 155,000 gallons of beer per year only on the

premises specified in the license, (ii) make sales of the beer

manufactured on the premises or, with the approval of the

Commission, beer manufactured on another brew pub licensed

premises that is wholly owned and operated by the same licensee

to importing distributors, distributors, and to non-licensees

for use and consumption, (iii) store the beer upon the

premises, (iv) sell and offer for sale at retail from the

licensed premises for off-premises consumption no more than

155,000 gallons per year so long as such sales are only made

in-person, (v) sell and offer for sale at retail for use and

consumption on the premises specified in the license any form

of alcoholic liquor purchased from a licensed distributor or

importing distributor, and (vi) with the prior approval of the

Commission, annually transfer no more than 155,000 gallons of

beer manufactured on the premises to a licensed brew pub wholly

owned and operated by the same licensee.

A brew pub licensee shall not under any circumstance sell

or offer for sale beer manufactured by the brew pub licensee to

retail licensees.

A person who holds a class 2 brewer license may

simultaneously hold a brew pub license if the class 2 brewer

(i) does not, under any circumstance, sell or offer for sale

beer manufactured by the class 2 brewer to retail licensees;

(ii) does not hold more than 3 brew pub licenses in this State;

(iii) does not manufacture more than a combined 3,720,000

gallons of beer per year, including the beer manufactured at

the brew pub; and (iv) is not a member of or affiliated with,

directly or indirectly, a manufacturer that produces more than

3,720,000 gallons of beer per year or any other alcoholic

liquor.

Notwithstanding any other provision of this Act, a licensed

brewer, class 2 brewer, or non-resident dealer who before July

1, 2015 manufactured less than 3,720,000 gallons of beer per

year and held a brew pub license on or before July 1, 2015 may

(i) continue to qualify for and hold that brew pub license for

the licensed premises and (ii) manufacture more than 3,720,000

gallons of beer per year and continue to qualify for and hold

that brew pub license if that brewer, class 2 brewer, or

non-resident dealer does not simultaneously hold a class 1

brewer license and is not a member of or affiliated with,

directly or indirectly, a manufacturer that produces more than

3,720,000 gallons of beer per year or that produces any other

alcoholic liquor.

(o) A caterer retailer license shall allow the holder to

serve alcoholic liquors as an incidental part of a food service

that serves prepared meals which excludes the serving of snacks

as the primary meal, either on or off-site whether licensed or

unlicensed.

(p) An auction liquor license shall allow the licensee to

sell and offer for sale at auction wine and spirits for use or

consumption, or for resale by an Illinois liquor licensee in

accordance with provisions of this Act. An auction liquor

license will be issued to a person and it will permit the

auction liquor licensee to hold the auction anywhere in the

State. An auction liquor license must be obtained for each

auction at least 14 days in advance of the auction date.

(q) A special use permit license shall allow an Illinois

licensed retailer to transfer a portion of its alcoholic liquor

inventory from its retail licensed premises to the premises

specified in the license hereby created, and to sell or offer

for sale at retail, only in the premises specified in the

license hereby created, the transferred alcoholic liquor for

use or consumption, but not for resale in any form. A special

use permit license may be granted for the following time

periods: one day or less; 2 or more days to a maximum of 15 days

per location in any 12-month period. An applicant for the

special use permit license must also submit with the

application proof satisfactory to the State Commission that the

applicant will provide dram shop liability insurance to the

maximum limits and have local authority approval.

(r) A winery shipper's license shall allow a person with a

first-class or second-class wine manufacturer's license, a

first-class or second-class wine-maker's license, or a limited

wine manufacturer's license or who is licensed to make wine

under the laws of another state to ship wine made by that

licensee directly to a resident of this State who is 21 years

of age or older for that resident's personal use and not for

resale. Prior to receiving a winery shipper's license, an

applicant for the license must provide the Commission with a

true copy of its current license in any state in which it is

licensed as a manufacturer of wine. An applicant for a winery

shipper's license must also complete an application form that

provides any other information the Commission deems necessary.

The application form shall include all addresses from which the

applicant for a winery shipper's license intends to ship wine,

including the name and address of any third party, except for a

common carrier, authorized to ship wine on behalf of the

manufacturer. The application form shall include an

acknowledgement consenting to the jurisdiction of the

Commission, the Illinois Department of Revenue, and the courts

of this State concerning the enforcement of this Act and any

related laws, rules, and regulations, including authorizing

the Department of Revenue and the Commission to conduct audits

for the purpose of ensuring compliance with Public Act 95-634,

and an acknowledgement that the wine manufacturer is in

compliance with Section 6-2 of this Act. Any third party,

except for a common carrier, authorized to ship wine on behalf

of a first-class or second-class wine manufacturer's licensee,

a first-class or second-class wine-maker's licensee, a limited

wine manufacturer's licensee, or a person who is licensed to

make wine under the laws of another state shall also be

disclosed by the winery shipper's licensee, and a copy of the

written appointment of the third-party wine provider, except

for a common carrier, to the wine manufacturer shall be filed

with the State Commission as a supplement to the winery

shipper's license application or any renewal thereof. The

winery shipper's license holder shall affirm under penalty of

perjury, as part of the winery shipper's license application or

renewal, that he or she only ships wine, either directly or

indirectly through a third-party provider, from the licensee's

own production.

Except for a common carrier, a third-party provider

shipping wine on behalf of a winery shipper's license holder is

the agent of the winery shipper's license holder and, as such,

a winery shipper's license holder is responsible for the acts

and omissions of the third-party provider acting on behalf of

the license holder. A third-party provider, except for a common

carrier, that engages in shipping wine into Illinois on behalf

of a winery shipper's license holder shall consent to the

jurisdiction of the State Commission and the State. Any

third-party, except for a common carrier, holding such an

appointment shall, by February 1 of each calendar year and upon

request by the State Commission or the Department of Revenue,

file with the State Commission a statement detailing each

shipment made to an Illinois resident. The statement shall

include the name and address of the third-party provider filing

the statement, the time period covered by the statement, and

the following information:

(1) the name, address, and license number of the winery

shipper on whose behalf the shipment was made;

(2) the quantity of the products delivered; and

(3) the date and address of the shipment.

If the Department of Revenue or the State Commission requests a

statement under this paragraph, the third-party provider must

provide that statement no later than 30 days after the request

is made. Any books, records, supporting papers, and documents

containing information and data relating to a statement under

this paragraph shall be kept and preserved for a period of 3

years, unless their destruction sooner is authorized, in

writing, by the Director of Revenue, and shall be open and

available to inspection by the Director of Revenue or the State

Commission or any duly authorized officer, agent, or employee

of the State Commission or the Department of Revenue, at all

times during business hours of the day. Any person who violates

any provision of this paragraph or any rule of the State

Commission for the administration and enforcement of the

provisions of this paragraph is guilty of a Class C

misdemeanor. In case of a continuing violation, each day's

continuance thereof shall be a separate and distinct offense.

The State Commission shall adopt rules as soon as

practicable to implement the requirements of Public Act 99-904

and shall adopt rules prohibiting any such third-party

appointment of a third-party provider, except for a common

carrier, that has been deemed by the State Commission to have

violated the provisions of this Act with regard to any winery

shipper licensee.

A winery shipper licensee must pay to the Department of

Revenue the State liquor gallonage tax under Section 8-1 for

all wine that is sold by the licensee and shipped to a person

in this State. For the purposes of Section 8-1, a winery

shipper licensee shall be taxed in the same manner as a

manufacturer of wine. A licensee who is not otherwise required

to register under the Retailers' Occupation Tax Act must

register under the Use Tax Act to collect and remit use tax to

the Department of Revenue for all gallons of wine that are sold

by the licensee and shipped to persons in this State. If a

licensee fails to remit the tax imposed under this Act in

accordance with the provisions of Article VIII of this Act, the

winery shipper's license shall be revoked in accordance with

the provisions of Article VII of this Act. If a licensee fails

to properly register and remit tax under the Use Tax Act or the

Retailers' Occupation Tax Act for all wine that is sold by the

winery shipper and shipped to persons in this State, the winery

shipper's license shall be revoked in accordance with the

provisions of Article VII of this Act.

A winery shipper licensee must collect, maintain, and

submit to the Commission on a semi-annual basis the total

number of cases per resident of wine shipped to residents of

this State. A winery shipper licensed under this subsection (r)

must comply with the requirements of Section 6-29 of this Act.

Pursuant to paragraph (5.1) or (5.3) of subsection (a) of

Section 3-12, the State Commission may receive, respond to, and

investigate any complaint and impose any of the remedies

specified in paragraph (1) of subsection (a) of Section 3-12.

As used in this subsection, "third-party provider" means

any entity that provides fulfillment house services, including

warehousing, packaging, distribution, order processing, or

shipment of wine, but not the sale of wine, on behalf of a

licensed winery shipper.

(s) A craft distiller tasting permit license shall allow an

Illinois licensed craft distiller to transfer a portion of its

alcoholic liquor inventory from its craft distiller licensed

premises to the premises specified in the license hereby

created and to conduct a sampling, only in the premises

specified in the license hereby created, of the transferred

alcoholic liquor in accordance with subsection (c) of Section

6-31 of this Act. The transferred alcoholic liquor may not be

sold or resold in any form. An applicant for the craft

distiller tasting permit license must also submit with the

application proof satisfactory to the State Commission that the

applicant will provide dram shop liability insurance to the

maximum limits and have local authority approval.

A brewer warehouse permit may be issued to the holder of a

class 1 brewer license or a class 2 brewer license. If the

holder of the permit is a class 1 brewer licensee, the brewer

warehouse permit shall allow the holder to store or warehouse

up to 930,000 gallons of tax-determined beer manufactured by

the holder of the permit at the premises specified on the

permit. If the holder of the permit is a class 2 brewer

licensee, the brewer warehouse permit shall allow the holder to

store or warehouse up to 3,720,000 gallons of tax-determined

beer manufactured by the holder of the permit at the premises

specified on the permit. Sales to non-licensees are prohibited

at the premises specified in the brewer warehouse permit.

(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;

99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.

1-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,

eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;

revised 10-2-18.)

(235 ILCS 5/6-30) (from Ch. 43, par. 144f)

Sec. 6-30. Notwithstanding any other provision of this Act,

the Illinois Gaming Board shall have exclusive authority to

establish the hours for sale and consumption of alcoholic

liquor on board a riverboat during riverboat gambling

excursions and in a casino conducted in accordance with the

Illinois Riverboat Gambling Act.

(Source: P.A. 87-826.)

Section 35-70. The Illinois Public Aid Code is amended by

changing Section 10-17.15 as follows:

(305 ILCS 5/10-17.15)

Sec. 10-17.15. Certification of information to State

gaming licensees.

(a) For purposes of this Section, "State gaming licensee"

means, as applicable, an organization licensee or advance

deposit wagering licensee licensed under the Illinois Horse

Racing Act of 1975, an owners licensee licensed under the

Illinois Riverboat Gambling Act, or a licensee that operates,

under any law of this State, one or more facilities or gaming

locations at which lawful gambling is authorized and licensed

as provided in the Illinois Riverboat Gambling Act.

(b) The Department may provide, by rule, for certification

to any State gaming licensee of past due child support owed by

a responsible relative under a support order entered by a court

or administrative body of this or any other State on behalf of

a resident or non-resident receiving child support services

under this Article in accordance with the requirements of Title

IV-D, Part D, of the Social Security Act. The State gaming

licensee shall have the ability to withhold from winnings

required to be reported to the Internal Revenue Service on Form

W-2G, up to the full amount of winnings necessary to pay the

winner's past due child support. The rule shall provide for

notice to and an opportunity to be heard by each responsible

relative affected and any final administrative decision

rendered by the Department shall be reviewed only under and in

accordance with the Administrative Review Law.

(c) For withholding of winnings, the State gaming licensee

shall be entitled to an administrative fee not to exceed the

lesser of 4% of the total amount of cash winnings paid to the

gambling winner or $150.

(d) In no event may the total amount withheld from the cash

payout, including the administrative fee, exceed the total cash

winnings claimed by the obligor. If the cash payout claimed is

greater than the amount sufficient to satisfy the obligor's

delinquent child support payments, the State gaming licensee

shall pay the obligor the remaining balance of the payout, less

the administrative fee authorized by subsection (c) of this

Section, at the time it is claimed.

(e) A State gaming licensee who in good faith complies with

the requirements of this Section shall not be liable to the

gaming winner or any other individual or entity.

(Source: P.A. 98-318, eff. 8-12-13.)

Section 35-75. The Firearm Concealed Carry Act is amended

by changing Section 65 as follows:

(430 ILCS 66/65)

Sec. 65. Prohibited areas.

(a) A licensee under this Act shall not knowingly carry a

firearm on or into:

(1) Any building, real property, and parking area under

the control of a public or private elementary or secondary

school.

(2) Any building, real property, and parking area under

the control of a pre-school or child care facility,

including any room or portion of a building under the

control of a pre-school or child care facility. Nothing in

this paragraph shall prevent the operator of a child care

facility in a family home from owning or possessing a

firearm in the home or license under this Act, if no child

under child care at the home is present in the home or the

firearm in the home is stored in a locked container when a

child under child care at the home is present in the home.

(3) Any building, parking area, or portion of a

building under the control of an officer of the executive

or legislative branch of government, provided that nothing

in this paragraph shall prohibit a licensee from carrying a

concealed firearm onto the real property, bikeway, or trail

in a park regulated by the Department of Natural Resources

or any other designated public hunting area or building

where firearm possession is permitted as established by the

Department of Natural Resources under Section 1.8 of the

Wildlife Code.

(4) Any building designated for matters before a

circuit court, appellate court, or the Supreme Court, or

any building or portion of a building under the control of

the Supreme Court.

(5) Any building or portion of a building under the

control of a unit of local government.

(6) Any building, real property, and parking area under

the control of an adult or juvenile detention or

correctional institution, prison, or jail.

(7) Any building, real property, and parking area under

the control of a public or private hospital or hospital

affiliate, mental health facility, or nursing home.

(8) Any bus, train, or form of transportation paid for

in whole or in part with public funds, and any building,

real property, and parking area under the control of a

public transportation facility paid for in whole or in part

with public funds.

(9) Any building, real property, and parking area under

the control of an establishment that serves alcohol on its

premises, if more than 50% of the establishment's gross

receipts within the prior 3 months is from the sale of

alcohol. The owner of an establishment who knowingly fails

to prohibit concealed firearms on its premises as provided

in this paragraph or who knowingly makes a false statement

or record to avoid the prohibition on concealed firearms

under this paragraph is subject to the penalty under

subsection (c-5) of Section 10-1 of the Liquor Control Act

of 1934.

(10) Any public gathering or special event conducted on

property open to the public that requires the issuance of a

permit from the unit of local government, provided this

prohibition shall not apply to a licensee who must walk

through a public gathering in order to access his or her

residence, place of business, or vehicle.

(11) Any building or real property that has been issued

a Special Event Retailer's license as defined in Section

1-3.17.1 of the Liquor Control Act during the time

designated for the sale of alcohol by the Special Event

Retailer's license, or a Special use permit license as

defined in subsection (q) of Section 5-1 of the Liquor

Control Act during the time designated for the sale of

alcohol by the Special use permit license.

(12) Any public playground.

(13) Any public park, athletic area, or athletic

facility under the control of a municipality or park

district, provided nothing in this Section shall prohibit a

licensee from carrying a concealed firearm while on a trail

or bikeway if only a portion of the trail or bikeway

includes a public park.

(14) Any real property under the control of the Cook

County Forest Preserve District.

(15) Any building, classroom, laboratory, medical

clinic, hospital, artistic venue, athletic venue,

entertainment venue, officially recognized

university-related organization property, whether owned or

leased, and any real property, including parking areas,

sidewalks, and common areas under the control of a public

or private community college, college, or university.

(16) Any building, real property, or parking area under

the control of a gaming facility licensed under the

Illinois Riverboat Gambling Act or the Illinois Horse

Racing Act of 1975, including an inter-track wagering

location licensee.

(17) Any stadium, arena, or the real property or

parking area under the control of a stadium, arena, or any

collegiate or professional sporting event.

(18) Any building, real property, or parking area under

the control of a public library.

(19) Any building, real property, or parking area under

the control of an airport.

(20) Any building, real property, or parking area under

the control of an amusement park.

(21) Any building, real property, or parking area under

the control of a zoo or museum.

(22) Any street, driveway, parking area, property,

building, or facility, owned, leased, controlled, or used

by a nuclear energy, storage, weapons, or development site

or facility regulated by the federal Nuclear Regulatory

Commission. The licensee shall not under any circumstance

store a firearm or ammunition in his or her vehicle or in a

compartment or container within a vehicle located anywhere

in or on the street, driveway, parking area, property,

building, or facility described in this paragraph.

(23) Any area where firearms are prohibited under

federal law.

(a-5) Nothing in this Act shall prohibit a public or

private community college, college, or university from:

(1) prohibiting persons from carrying a firearm within

a vehicle owned, leased, or controlled by the college or

university;

(2) developing resolutions, regulations, or policies

regarding student, employee, or visitor misconduct and

discipline, including suspension and expulsion;

(3) developing resolutions, regulations, or policies

regarding the storage or maintenance of firearms, which

must include designated areas where persons can park

vehicles that carry firearms; and

(4) permitting the carrying or use of firearms for the

purpose of instruction and curriculum of officially

recognized programs, including but not limited to military

science and law enforcement training programs, or in any

designated area used for hunting purposes or target

shooting.

(a-10) The owner of private real property of any type may

prohibit the carrying of concealed firearms on the property

under his or her control. The owner must post a sign in

accordance with subsection (d) of this Section indicating that

firearms are prohibited on the property, unless the property is

a private residence.

(b) Notwithstanding subsections (a), (a-5), and (a-10) of

this Section except under paragraph (22) or (23) of subsection

(a), any licensee prohibited from carrying a concealed firearm

into the parking area of a prohibited location specified in

subsection (a), (a-5), or (a-10) of this Section shall be

permitted to carry a concealed firearm on or about his or her

person within a vehicle into the parking area and may store a

firearm or ammunition concealed in a case within a locked

vehicle or locked container out of plain view within the

vehicle in the parking area. A licensee may carry a concealed

firearm in the immediate area surrounding his or her vehicle

within a prohibited parking lot area only for the limited

purpose of storing or retrieving a firearm within the vehicle's

trunk. For purposes of this subsection, "case" includes a glove

compartment or console that completely encloses the concealed

firearm or ammunition, the trunk of the vehicle, or a firearm

carrying box, shipping box, or other container.

(c) A licensee shall not be in violation of this Section

while he or she is traveling along a public right of way that

touches or crosses any of the premises under subsection (a),

(a-5), or (a-10) of this Section if the concealed firearm is

carried on his or her person in accordance with the provisions

of this Act or is being transported in a vehicle by the

licensee in accordance with all other applicable provisions of

law.

(d) Signs stating that the carrying of firearms is

prohibited shall be clearly and conspicuously posted at the

entrance of a building, premises, or real property specified in

this Section as a prohibited area, unless the building or

premises is a private residence. Signs shall be of a uniform

design as established by the Department and shall be 4 inches

by 6 inches in size. The Department shall adopt rules for

standardized signs to be used under this subsection.

(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)

Section 35-80. The Criminal Code of 2012 is amended by

changing Sections 28-1, 28-1.1, 28-2, 28-3, 28-5, and 28-7 as

follows:

(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

Sec. 28-1. Gambling.

(a) A person commits gambling when he or she:

(1) knowingly plays a game of chance or skill for money

or other thing of value, unless excepted in subsection (b)

of this Section;

(2) knowingly makes a wager upon the result of any

game, contest, or any political nomination, appointment or

election;

(3) knowingly operates, keeps, owns, uses, purchases,

exhibits, rents, sells, bargains for the sale or lease of,

manufactures or distributes any gambling device;

(4) contracts to have or give himself or herself or

another the option to buy or sell, or contracts to buy or

sell, at a future time, any grain or other commodity

whatsoever, or any stock or security of any company, where

it is at the time of making such contract intended by both

parties thereto that the contract to buy or sell, or the

option, whenever exercised, or the contract resulting

therefrom, shall be settled, not by the receipt or delivery

of such property, but by the payment only of differences in

prices thereof; however, the issuance, purchase, sale,

exercise, endorsement or guarantee, by or through a person

registered with the Secretary of State pursuant to Section

8 of the Illinois Securities Law of 1953, or by or through

a person exempt from such registration under said Section

8, of a put, call, or other option to buy or sell

securities which have been registered with the Secretary of

State or which are exempt from such registration under

Section 3 of the Illinois Securities Law of 1953 is not

gambling within the meaning of this paragraph (4);

(5) knowingly owns or possesses any book, instrument or

apparatus by means of which bets or wagers have been, or

are, recorded or registered, or knowingly possesses any

money which he has received in the course of a bet or

wager;

(6) knowingly sells pools upon the result of any game

or contest of skill or chance, political nomination,

appointment or election;

(7) knowingly sets up or promotes any lottery or sells,

offers to sell or transfers any ticket or share for any

lottery;

(8) knowingly sets up or promotes any policy game or

sells, offers to sell or knowingly possesses or transfers

any policy ticket, slip, record, document or other similar

device;

(9) knowingly drafts, prints or publishes any lottery

ticket or share, or any policy ticket, slip, record,

document or similar device, except for such activity

related to lotteries, bingo games and raffles authorized by

and conducted in accordance with the laws of Illinois or

any other state or foreign government;

(10) knowingly advertises any lottery or policy game,

except for such activity related to lotteries, bingo games

and raffles authorized by and conducted in accordance with

the laws of Illinois or any other state;

(11) knowingly transmits information as to wagers,

betting odds, or changes in betting odds by telephone,

telegraph, radio, semaphore or similar means; or knowingly

installs or maintains equipment for the transmission or

receipt of such information; except that nothing in this

subdivision (11) prohibits transmission or receipt of such

information for use in news reporting of sporting events or

contests; or

(12) knowingly establishes, maintains, or operates an

Internet site that permits a person to play a game of

chance or skill for money or other thing of value by means

of the Internet or to make a wager upon the result of any

game, contest, political nomination, appointment, or

election by means of the Internet. This item (12) does not

apply to activities referenced in items (6) and (6.1) of

subsection (b) of this Section.

(b) Participants in any of the following activities shall

not be convicted of gambling:

(1) Agreements to compensate for loss caused by the

happening of chance including without limitation contracts

of indemnity or guaranty and life or health or accident

insurance.

(2) Offers of prizes, award or compensation to the

actual contestants in any bona fide contest for the

determination of skill, speed, strength or endurance or to

the owners of animals or vehicles entered in such contest.

(3) Pari-mutuel betting as authorized by the law of

this State.

(4) Manufacture of gambling devices, including the

acquisition of essential parts therefor and the assembly

thereof, for transportation in interstate or foreign

commerce to any place outside this State when such

transportation is not prohibited by any applicable Federal

law; or the manufacture, distribution, or possession of

video gaming terminals, as defined in the Video Gaming Act,

by manufacturers, distributors, and terminal operators

licensed to do so under the Video Gaming Act.

(5) The game commonly known as "bingo", when conducted

in accordance with the Bingo License and Tax Act.

(6) Lotteries when conducted by the State of Illinois

in accordance with the Illinois Lottery Law. This exemption

includes any activity conducted by the Department of

Revenue to sell lottery tickets pursuant to the provisions

of the Illinois Lottery Law and its rules.

(6.1) The purchase of lottery tickets through the

Internet for a lottery conducted by the State of Illinois

under the program established in Section 7.12 of the

Illinois Lottery Law.

(7) Possession of an antique slot machine that is

neither used nor intended to be used in the operation or

promotion of any unlawful gambling activity or enterprise.

For the purpose of this subparagraph (b)(7), an antique

slot machine is one manufactured 25 years ago or earlier.

(8) Raffles and poker runs when conducted in accordance

with the Raffles and Poker Runs Act.

(9) Charitable games when conducted in accordance with

the Charitable Games Act.

(10) Pull tabs and jar games when conducted under the

Illinois Pull Tabs and Jar Games Act.

(11) Gambling games conducted on riverboats when

authorized by the Illinois Riverboat Gambling Act.

(12) Video gaming terminal games at a licensed

establishment, licensed truck stop establishment, licensed

large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment when

conducted in accordance with the Video Gaming Act.

(13) Games of skill or chance where money or other

things of value can be won but no payment or purchase is

required to participate.

(14) Savings promotion raffles authorized under

Section 5g of the Illinois Banking Act, Section 7008 of the

Savings Bank Act, Section 42.7 of the Illinois Credit Union

Act, Section 5136B of the National Bank Act (12 U.S.C.

25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.

1463).

(c) Sentence.

Gambling is a Class A misdemeanor. A second or subsequent

conviction under subsections (a)(3) through (a)(12), is a Class

4 felony.

(d) Circumstantial evidence.

In prosecutions under this Section circumstantial evidence

shall have the same validity and weight as in any criminal

prosecution.

(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

(720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)

Sec. 28-1.1. Syndicated gambling.

(a) Declaration of Purpose. Recognizing the close

relationship between professional gambling and other organized

crime, it is declared to be the policy of the legislature to

restrain persons from engaging in the business of gambling for

profit in this State. This Section shall be liberally construed

and administered with a view to carrying out this policy.

(b) A person commits syndicated gambling when he or she

operates a "policy game" or engages in the business of

bookmaking.

(c) A person "operates a policy game" when he or she

knowingly uses any premises or property for the purpose of

receiving or knowingly does receive from what is commonly

called "policy":

(1) money from a person other than the bettor or player

whose bets or plays are represented by the money; or

(2) written "policy game" records, made or used over

any period of time, from a person other than the bettor or

player whose bets or plays are represented by the written

record.

(d) A person engages in bookmaking when he or she knowingly

receives or accepts more than five bets or wagers upon the

result of any trials or contests of skill, speed or power of

endurance or upon any lot, chance, casualty, unknown or

contingent event whatsoever, which bets or wagers shall be of

such size that the total of the amounts of money paid or

promised to be paid to the bookmaker on account thereof shall

exceed $2,000. Bookmaking is the receiving or accepting of bets

or wagers regardless of the form or manner in which the

bookmaker records them.

(e) Participants in any of the following activities shall

not be convicted of syndicated gambling:

(1) Agreements to compensate for loss caused by the

happening of chance including without limitation contracts

of indemnity or guaranty and life or health or accident

insurance;

(2) Offers of prizes, award or compensation to the

actual contestants in any bona fide contest for the

determination of skill, speed, strength or endurance or to

the owners of animals or vehicles entered in the contest;

(3) Pari-mutuel betting as authorized by law of this

State;

(4) Manufacture of gambling devices, including the

acquisition of essential parts therefor and the assembly

thereof, for transportation in interstate or foreign

commerce to any place outside this State when the

transportation is not prohibited by any applicable Federal

law;

(5) Raffles and poker runs when conducted in accordance

with the Raffles and Poker Runs Act;

(6) Gambling games conducted on riverboats, in

casinos, or at organization gaming facilities when

authorized by the Illinois Riverboat Gambling Act;

(7) Video gaming terminal games at a licensed

establishment, licensed truck stop establishment, licensed

large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment when

conducted in accordance with the Video Gaming Act; and

(8) Savings promotion raffles authorized under Section

5g of the Illinois Banking Act, Section 7008 of the Savings

Bank Act, Section 42.7 of the Illinois Credit Union Act,

Section 5136B of the National Bank Act (12 U.S.C. 25a), or

Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).

(f) Sentence. Syndicated gambling is a Class 3 felony.

(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

(720 ILCS 5/28-2) (from Ch. 38, par. 28-2)

Sec. 28-2. Definitions.

(a) A "gambling device" is any clock, tape machine, slot

machine or other machines or device for the reception of money

or other thing of value on chance or skill or upon the action

of which money or other thing of value is staked, hazarded,

bet, won or lost; or any mechanism, furniture, fixture,

equipment or other device designed primarily for use in a

gambling place. A "gambling device" does not include:

(1) A coin-in-the-slot operated mechanical device

played for amusement which rewards the player with the

right to replay such mechanical device, which device is so

constructed or devised as to make such result of the

operation thereof depend in part upon the skill of the

player and which returns to the player thereof no money,

property or right to receive money or property.

(2) Vending machines by which full and adequate return

is made for the money invested and in which there is no

element of chance or hazard.

(3) A crane game. For the purposes of this paragraph

(3), a "crane game" is an amusement device involving skill,

if it rewards the player exclusively with merchandise

contained within the amusement device proper and limited to

toys, novelties and prizes other than currency, each having

a wholesale value which is not more than $25.

(4) A redemption machine. For the purposes of this

paragraph (4), a "redemption machine" is a single-player or

multi-player amusement device involving a game, the object

of which is throwing, rolling, bowling, shooting, placing,

or propelling a ball or other object that is either

physical or computer generated on a display or with lights

into, upon, or against a hole or other target that is

either physical or computer generated on a display or with

lights, or stopping, by physical, mechanical, or

electronic means, a moving object that is either physical

or computer generated on a display or with lights into,

upon, or against a hole or other target that is either

physical or computer generated on a display or with lights,

provided that all of the following conditions are met:

(A) The outcome of the game is predominantly

determined by the skill of the player.

(B) The award of the prize is based solely upon the

player's achieving the object of the game or otherwise

upon the player's score.

(C) Only merchandise prizes are awarded.

(D) The wholesale value of prizes awarded in lieu

of tickets or tokens for single play of the device does

not exceed $25.

(E) The redemption value of tickets, tokens, and

other representations of value, which may be

accumulated by players to redeem prizes of greater

value, for a single play of the device does not exceed

$25.

(5) Video gaming terminals at a licensed

establishment, licensed truck stop establishment, licensed

large truck stop establishment, licensed fraternal

establishment, or licensed veterans establishment licensed

in accordance with the Video Gaming Act.

(a-5) "Internet" means an interactive computer service or

system or an information service, system, or access software

provider that provides or enables computer access by multiple

users to a computer server, and includes, but is not limited

to, an information service, system, or access software provider

that provides access to a network system commonly known as the

Internet, or any comparable system or service and also

includes, but is not limited to, a World Wide Web page,

newsgroup, message board, mailing list, or chat area on any

interactive computer service or system or other online service.

(a-6) "Access" and "computer" have the meanings ascribed to

them in Section 16D-2 of this Code.

(b) A "lottery" is any scheme or procedure whereby one or

more prizes are distributed by chance among persons who have

paid or promised consideration for a chance to win such prizes,

whether such scheme or procedure is called a lottery, raffle,

gift, sale or some other name, excluding savings promotion

raffles authorized under Section 5g of the Illinois Banking

Act, Section 7008 of the Savings Bank Act, Section 42.7 of the

Illinois Credit Union Act, Section 5136B of the National Bank

Act (12 U.S.C. 25a), or Section 4 of the Home Owners' Loan Act

(12 U.S.C. 1463).

(c) A "policy game" is any scheme or procedure whereby a

person promises or guarantees by any instrument, bill,

certificate, writing, token or other device that any particular

number, character, ticket or certificate shall in the event of

any contingency in the nature of a lottery entitle the

purchaser or holder to receive money, property or evidence of

debt.

(Source: P.A. 98-31, eff. 6-24-13; 99-149, eff. 1-1-16.)

(720 ILCS 5/28-3) (from Ch. 38, par. 28-3)

Sec. 28-3. Keeping a Gambling Place. A "gambling place" is

any real estate, vehicle, boat or any other property whatsoever

used for the purposes of gambling other than gambling conducted

in the manner authorized by the Illinois Riverboat Gambling Act

or the Video Gaming Act. Any person who knowingly permits any

premises or property owned or occupied by him or under his

control to be used as a gambling place commits a Class A

misdemeanor. Each subsequent offense is a Class 4 felony. When

any premises is determined by the circuit court to be a

gambling place:

(a) Such premises is a public nuisance and may be proceeded

against as such, and

(b) All licenses, permits or certificates issued by the

State of Illinois or any subdivision or public agency thereof

authorizing the serving of food or liquor on such premises

shall be void; and no license, permit or certificate so

cancelled shall be reissued for such premises for a period of

60 days thereafter; nor shall any person convicted of keeping a

gambling place be reissued such license for one year from his

conviction and, after a second conviction of keeping a gambling

place, any such person shall not be reissued such license, and

(c) Such premises of any person who knowingly permits

thereon a violation of any Section of this Article shall be

held liable for, and may be sold to pay any unsatisfied

judgment that may be recovered and any unsatisfied fine that

may be levied under any Section of this Article.

(Source: P.A. 96-34, eff. 7-13-09.)

(720 ILCS 5/28-5) (from Ch. 38, par. 28-5)

Sec. 28-5. Seizure of gambling devices and gambling funds.

(a) Every device designed for gambling which is incapable

of lawful use or every device used unlawfully for gambling

shall be considered a "gambling device", and shall be subject

to seizure, confiscation and destruction by the Department of

State Police or by any municipal, or other local authority,

within whose jurisdiction the same may be found. As used in

this Section, a "gambling device" includes any slot machine,

and includes any machine or device constructed for the

reception of money or other thing of value and so constructed

as to return, or to cause someone to return, on chance to the

player thereof money, property or a right to receive money or

property. With the exception of any device designed for

gambling which is incapable of lawful use, no gambling device

shall be forfeited or destroyed unless an individual with a

property interest in said device knows of the unlawful use of

the device.

(b) Every gambling device shall be seized and forfeited to

the county wherein such seizure occurs. Any money or other

thing of value integrally related to acts of gambling shall be

seized and forfeited to the county wherein such seizure occurs.

(c) If, within 60 days after any seizure pursuant to

subparagraph (b) of this Section, a person having any property

interest in the seized property is charged with an offense, the

court which renders judgment upon such charge shall, within 30

days after such judgment, conduct a forfeiture hearing to

determine whether such property was a gambling device at the

time of seizure. Such hearing shall be commenced by a written

petition by the State, including material allegations of fact,

the name and address of every person determined by the State to

have any property interest in the seized property, a

representation that written notice of the date, time and place

of such hearing has been mailed to every such person by

certified mail at least 10 days before such date, and a request

for forfeiture. Every such person may appear as a party and

present evidence at such hearing. The quantum of proof required

shall be a preponderance of the evidence, and the burden of

proof shall be on the State. If the court determines that the

seized property was a gambling device at the time of seizure,

an order of forfeiture and disposition of the seized property

shall be entered: a gambling device shall be received by the

State's Attorney, who shall effect its destruction, except that

valuable parts thereof may be liquidated and the resultant

money shall be deposited in the general fund of the county

wherein such seizure occurred; money and other things of value

shall be received by the State's Attorney and, upon

liquidation, shall be deposited in the general fund of the

county wherein such seizure occurred. However, in the event

that a defendant raises the defense that the seized slot

machine is an antique slot machine described in subparagraph

(b) (7) of Section 28-1 of this Code and therefore he is exempt

from the charge of a gambling activity participant, the seized

antique slot machine shall not be destroyed or otherwise

altered until a final determination is made by the Court as to

whether it is such an antique slot machine. Upon a final

determination by the Court of this question in favor of the

defendant, such slot machine shall be immediately returned to

the defendant. Such order of forfeiture and disposition shall,

for the purposes of appeal, be a final order and judgment in a

civil proceeding.

(d) If a seizure pursuant to subparagraph (b) of this

Section is not followed by a charge pursuant to subparagraph

(c) of this Section, or if the prosecution of such charge is

permanently terminated or indefinitely discontinued without

any judgment of conviction or acquittal (1) the State's

Attorney shall commence an in rem proceeding for the forfeiture

and destruction of a gambling device, or for the forfeiture and

deposit in the general fund of the county of any seized money

or other things of value, or both, in the circuit court and (2)

any person having any property interest in such seized gambling

device, money or other thing of value may commence separate

civil proceedings in the manner provided by law.

(e) Any gambling device displayed for sale to a riverboat

gambling operation, casino gambling operation, or organization

gaming facility or used to train occupational licensees of a

riverboat gambling operation, casino gambling operation, or

organization gaming facility as authorized under the Illinois

Riverboat Gambling Act is exempt from seizure under this

Section.

(f) Any gambling equipment, devices, and supplies provided

by a licensed supplier in accordance with the Illinois

Riverboat Gambling Act which are removed from a the riverboat,

casino, or organization gaming facility for repair are exempt

from seizure under this Section.

(g) The following video gaming terminals are exempt from

seizure under this Section:

(1) Video gaming terminals for sale to a licensed

distributor or operator under the Video Gaming Act.

(2) Video gaming terminals used to train licensed

technicians or licensed terminal handlers.

(3) Video gaming terminals that are removed from a

licensed establishment, licensed truck stop establishment,

licensed large truck stop establishment, licensed

fraternal establishment, or licensed veterans

establishment for repair.

(h) Property seized or forfeited under this Section is

subject to reporting under the Seizure and Forfeiture Reporting

Act.

(Source: P.A. 100-512, eff. 7-1-18.)

(720 ILCS 5/28-7) (from Ch. 38, par. 28-7)

Sec. 28-7. Gambling contracts void.

(a) All promises, notes, bills, bonds, covenants,

contracts, agreements, judgments, mortgages, or other

securities or conveyances made, given, granted, drawn, or

entered into, or executed by any person whatsoever, where the

whole or any part of the consideration thereof is for any money

or thing of value, won or obtained in violation of any Section

of this Article are null and void.

(b) Any obligation void under this Section may be set aside

and vacated by any court of competent jurisdiction, upon a

complaint filed for that purpose, by the person so granting,

giving, entering into, or executing the same, or by his

executors or administrators, or by any creditor, heir, legatee,

purchaser or other person interested therein; or if a judgment,

the same may be set aside on motion of any person stated above,

on due notice thereof given.

(c) No assignment of any obligation void under this Section

may in any manner affect the defense of the person giving,

granting, drawing, entering into or executing such obligation,

or the remedies of any person interested therein.

(d) This Section shall not prevent a licensed owner of a

riverboat gambling operation, a casino gambling operation, or

an organization gaming licensee under the Illinois Gambling Act

and the Illinois Horse Racing Act of 1975 from instituting a

cause of action to collect any amount due and owing under an

extension of credit to a riverboat gambling patron as

authorized under Section 11.1 of the Illinois Riverboat

Gambling Act.

(Source: P.A. 87-826.)

Section 35-85. The Payday Loan Reform Act is amended by

changing Section 3-5 as follows:

(815 ILCS 122/3-5)

Sec. 3-5. Licensure.

(a) A license to make a payday loan shall state the

address, including city and state, at which the business is to

be conducted and shall state fully the name of the licensee.

The license shall be conspicuously posted in the place of

business of the licensee and shall not be transferable or

assignable.

(b) An application for a license shall be in writing and in

a form prescribed by the Secretary. The Secretary may not issue

a payday loan license unless and until the following findings

are made:

(1) that the financial responsibility, experience,

character, and general fitness of the applicant are such as

to command the confidence of the public and to warrant the

belief that the business will be operated lawfully and

fairly and within the provisions and purposes of this Act;

and

(2) that the applicant has submitted such other

information as the Secretary may deem necessary.

(c) A license shall be issued for no longer than one year,

and no renewal of a license may be provided if a licensee has

substantially violated this Act and has not cured the violation

to the satisfaction of the Department.

(d) A licensee shall appoint, in writing, the Secretary as

attorney-in-fact upon whom all lawful process against the

licensee may be served with the same legal force and validity

as if served on the licensee. A copy of the written

appointment, duly certified, shall be filed in the office of

the Secretary, and a copy thereof certified by the Secretary

shall be sufficient evidence to subject a licensee to

jurisdiction in a court of law. This appointment shall remain

in effect while any liability remains outstanding in this State

against the licensee. When summons is served upon the Secretary

as attorney-in-fact for a licensee, the Secretary shall

immediately notify the licensee by registered mail, enclosing

the summons and specifying the hour and day of service.

(e) A licensee must pay an annual fee of $1,000. In

addition to the license fee, the reasonable expense of any

examination or hearing by the Secretary under any provisions of

this Act shall be borne by the licensee. If a licensee fails to

renew its license by December 1, its license shall

automatically expire; however, the Secretary, in his or her

discretion, may reinstate an expired license upon:

(1) payment of the annual fee within 30 days of the

date of expiration; and

(2) proof of good cause for failure to renew.

(f) Not more than one place of business shall be maintained

under the same license, but the Secretary may issue more than

one license to the same licensee upon compliance with all the

provisions of this Act governing issuance of a single license.

The location, except those locations already in existence as of

June 1, 2005, may not be within one mile of a horse race track

subject to the Illinois Horse Racing Act of 1975, within one

mile of a facility at which gambling is conducted under the

Illinois Riverboat Gambling Act, within one mile of the

location at which a riverboat subject to the Illinois Riverboat

Gambling Act docks, or within one mile of any State of Illinois

or United States military base or naval installation.

(g) No licensee shall conduct the business of making loans

under this Act within any office, suite, room, or place of

business in which (1) any loans are offered or made under the

Consumer Installment Loan Act other than title secured loans as

defined in subsection (a) of Section 15 of the Consumer

Installment Loan Act and governed by Title 38, Section 110.330

of the Illinois Administrative Code or (2) any other business

is solicited or engaged in unless the other business is

licensed by the Department or, in the opinion of the Secretary,

the other business would not be contrary to the best interests

of consumers and is authorized by the Secretary in writing.

(g-5) Notwithstanding subsection (g) of this Section, a

licensee may obtain a license under the Consumer Installment

Loan Act (CILA) for the exclusive purpose and use of making

title secured loans, as defined in subsection (a) of Section 15

of CILA and governed by Title 38, Section 110.300 of the

Illinois Administrative Code. A licensee may continue to

service Consumer Installment Loan Act loans that were

outstanding as of the effective date of this amendatory Act of

the 96th General Assembly.

(h) The Secretary shall maintain a list of licensees that

shall be available to interested consumers and lenders and the

public. The Secretary shall maintain a toll-free number whereby

consumers may obtain information about licensees. The

Secretary shall also establish a complaint process under which

an aggrieved consumer may file a complaint against a licensee

or non-licensee who violates any provision of this Act.

(Source: P.A. 100-958, eff. 8-19-18.)

Section 35-90. The Travel Promotion Consumer Protection

Act is amended by changing Section 2 as follows:

(815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)

Sec. 2. Definitions.

(a) "Travel promoter" means a person, including a tour

operator, who sells, provides, furnishes, contracts for,

arranges or advertises that he or she will arrange wholesale or

retail transportation by air, land, sea or navigable stream,

either separately or in conjunction with other services.

"Travel promoter" does not include (1) an air carrier; (2) a

sea carrier; (3) an officially appointed agent of an air

carrier who is a member in good standing of the Airline

Reporting Corporation; (4) a travel promoter who has in force

$1,000,000 or more of liability insurance coverage for

professional errors and omissions and a surety bond or

equivalent surety in the amount of $100,000 or more for the

benefit of consumers in the event of a bankruptcy on the part

of the travel promoter; or (5) a riverboat subject to

regulation under the Illinois Riverboat Gambling Act.

(b) "Advertise" means to make any representation in the

solicitation of passengers and includes communication with

other members of the same partnership, corporation, joint

venture, association, organization, group or other entity.

(c) "Passenger" means a person on whose behalf money or

other consideration has been given or is to be given to

another, including another member of the same partnership,

corporation, joint venture, association, organization, group

or other entity, for travel.

(d) "Ticket or voucher" means a writing or combination of

writings which is itself good and sufficient to obtain

transportation and other services for which the passenger has

contracted.

(Source: P.A. 91-357, eff. 7-29-99.)

(30 ILCS 105/5.490 rep.)

Section 35-95. The State Finance Act is amended by

repealing Section 5.490.

(230 ILCS 5/2.1 rep.)

(230 ILCS 5/54 rep.)

Section 35-100. The Illinois Horse Racing Act of 1975 is

amended by repealing Sections 2.1 and 54.

Article 99. Severability; Effective Date

Section 99-95. No acceleration or delay. Where this Act

makes changes in a statute that is represented in this Act by

text that is not yet or no longer in effect (for example, a

Section represented by multiple versions), the use of that text

does not accelerate or delay the taking effect of (i) the

changes made by this Act or (ii) provisions derived from any

other Public Act.

Section 99-97. Severability. The provisions of this Act are

severable under Section 1.31 of the Statute on Statutes.