Rep. Robert Rita

Filed: 5/31/2013

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1 AMENDMENT TO SENATE BILL 1739

2 AMENDMENT NO. ______. Amend Senate Bill 1739, AS AMENDED,

3 by replacing everything after the enacting clause with the

4 following:

5 "ARTICLE 1.

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

7 Chicago Casino Development Authority Act. References in this

8 Article to "this Act" mean this Article.

9 Section 1-2. Legislative intent.

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

11 of Chicago and the State of Illinois by assisting economic

12 development and promoting tourism and by increasing the amount

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

14 support education.

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

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

2 recognized that it will do so successfully only if public

3 confidence and trust in the credibility and integrity of the

4 gambling operations and the regulatory process is maintained.

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

6 Illinois Gaming Board to strictly regulate the facilities,

7 persons, associations, and practices related to gambling

8 operations pursuant to the police powers of the State,

9 including comprehensive law enforcement supervision.

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

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

12 regulates every other casino in Illinois.

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

14 "Authority" means the Chicago Casino Development Authority

15 created by this Act.

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

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

18 at which lawful gambling is authorized and licensed as provided

19 in the Illinois Gambling Act.

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

21 Act to govern and control the Authority.

22 "Casino management contract" means a legally binding

23 agreement between the Authority and a casino operator licensee

24 to operate or manage a casino.

25 "Casino operator licensee" means any person or entity

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1 selected by the Authority and approved and licensed by the

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

3 Chicago pursuant to a casino management contract.

4 "City" means the City of Chicago.

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

6 limited liability company, trust, or unincorporated

7 association.

8 "Executive director" means the person appointed by the

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

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

11 the Illinois Gambling Act.

12 "Mayor" means the Mayor of the City.

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

14 created a political subdivision, unit of local government with

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

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

17 Development Authority.

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

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

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

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

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

23 However, the Authority shall contract with a casino operator

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

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

2 Authority may contract pursuant to the procedures set forth in

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

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

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

6 Section 7.8 of the Illinois Gambling Act if the casino operator

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

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

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

10 operator licensee are subject to the Illinois Gambling Act and

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

12 the Authority and the casino operator licensee in a manner

13 consistent with that of other owners licensees under the

14 Illinois Gambling Act. Nothing in this Act shall confer

15 regulatory authority on the Chicago Casino Development

16 Authority. The Illinois Gaming Board shall have exclusive

17 regulatory authority over all gambling operations governed by

18 this Act.

19 Section 1-15. Casino Board.

20 (a) The governing and administrative powers of the

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

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

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

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

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

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1 Members of the Board must include the following:

2 (A) One member who has received, at a minimum, a

3 bachelor's degree from an accredited school and at least 10

4 years of verifiable training and experience in the fields

5 of investigation and law enforcement.

6 (B) One member who is a certified public accountant

7 with experience in auditing and with knowledge of complex

8 corporate structures and transactions.

9 (C) One member who has 5 years' experience as a

10 principal, senior officer, or director of a company or

11 business with either material responsibility for the daily

12 operations and management of the overall company or

13 business or material responsibility for the policy making

14 of the company or business.

15 (D) One member who is a lawyer licensed to practice law

16 in Illinois.

17 Each Casino Board appointee shall be subject to a

18 preliminary background investigation completed by the Gaming

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

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

21 determines that there is a substantial likelihood that it will

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

23 Board (applying the same standards for suitability to the

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

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

26 Gaming Board shall provide a written notice of such

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1 determination to the appointee and the Corporation Counsel of

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

3 such notice is delivered with respect to a particular

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

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

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

7 the Casino Board and shall participate as a Casino Board

8 member.

9 Each appointee shall be subject to a full background

10 investigation and final approval by the Gaming Board prior to

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

12 full background investigation of the Casino Board appointee

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

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

15 does not complete its background investigation within the

16 3-month period, then the Gaming Board shall give a written

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

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

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

20 determination and set forth a reasonable time when such

21 determination shall be made.

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

23 the Authority meets and shall be entitled to reimbursement of

24 reasonable expenses incurred in the performance of their

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

26 of secretary-treasurer may also receive compensation for

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1 services provided as that officer.

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

3 removal.

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

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

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

7 expiring July 1 three years following final approval by the

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

9 1 five years following final approval by the Gaming Board.

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

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

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

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

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

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

16 qualified. Nothing shall preclude a member from serving

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

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

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

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

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

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

23 Section.

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

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

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

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

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

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

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

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

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

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

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

10 or any political organization, but does not include activities

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

12 legislative, or administrative action, as those terms are

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

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

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

16 and public service functions.

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

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

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

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

21 has completed its preliminary background investigation of at

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

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

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

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

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

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

3 the Casino Board shall constitute a quorum. All substantive

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

5 affirmative vote of a majority of the members.

6 Section 1-30. Executive director; officers.

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

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

9 The executive director shall be subject to a preliminary

10 background investigation to be completed by the Gaming Board

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

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

13 determines that there is a substantial likelihood that it will

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

15 position (applying the same standards for suitability as the

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

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

18 provide a written notice of such determination to the appointee

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

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

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

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

23 application to the Gaming Board, the executive director shall

24 commence all duties as the acting executive director of the

25 Authority.

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1 The executive director shall be subject to a full

2 background investigation and final approval by the Gaming Board

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

4 complete its full background investigation of the executive

5 director within 3 months after the date of the executive

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

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

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

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

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

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

12 reached a final determination and set forth a reasonable time

13 when such determination shall be made.

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

15 executive director. Subject to the general control of the

16 Casino Board, the executive director shall be responsible for

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

18 the Authority. The executive director shall direct the

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

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

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

22 and independent contractors, consultants, engineers,

23 architects, accountants, attorneys, financial experts,

24 construction experts and personnel, superintendents, managers,

25 and other personnel appointed or employed pursuant to this Act

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

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

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

3 Authority to do all of the following:

4 (1) Direct and supervise the administrative affairs

5 and activities of the Authority in accordance with its

6 rules, regulations, and policies.

7 (2) Attend meetings of the Casino Board.

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

9 Board.

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

11 payments, and allowable expenses of the Casino Board and

12 its employees and consultants.

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

14 concerning the terms and conditions of any casino

15 management contract.

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

17 requires for carrying out the provisions of this Act.

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

19 office and not hold any other office or employment.

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

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

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

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

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

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

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1 (1) Adopt and alter an official seal.

2 (2) Establish and change its fiscal year.

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

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

5 to which it is a party.

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

7 regulations consistent with the furtherance of the powers

8 and duties provided for.

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

10 such other offices as the Casino Board may designate.

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

12 permanent casino.

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

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

15 or independent contractors, consultants, engineers,

16 architects, accountants, attorneys, financial experts,

17 construction experts and personnel, superintendents,

18 managers and other professional personnel, and such other

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

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

21 the Authority shall be hired pursuant to and in accordance

22 with the rules and policies the Authority may adopt.

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

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

25 maintain grounds, buildings, and facilities to carry out

26 its corporate purposes and duties.

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

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

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

4 rules of the Gaming Board as consistently applied to all

5 owners licensees under the Illinois Gambling Act, provided

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

7 construction, and outfitting of a temporary casino prior to

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

9 executive director and the members of the Casino Board and

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

11 owners license. Provided further that the entities

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

13 outfitting of the temporary casino shall be subject to a

14 preliminary background investigation to be completed by

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

16 provided the identities of the entities. If the Gaming

17 Board determines that there is a substantial likelihood

18 that the entities are not suitable or acceptable to perform

19 their respective functions, then the Gaming Board shall

20 immediately provide notice of that determination to the

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

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

23 identifying such entities is provided to the Gaming Board,

24 such entities shall be permitted to commence the services

25 contemplated for the design, construction, and outfitting

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

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1 Authority open a casino until after the Gaming Board has

2 finally approved the Authority's executive director and

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

4 issued the Authority's owners license and the casino

5 operator's casino operator license.

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

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

8 (11) Negotiate and enter into intergovernmental

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

10 other units of local government, in furtherance of the

11 powers and duties of the Casino Board.

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

13 purposes or as otherwise specified in this Act.

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

15 for any corporate purpose, including, without limitation,

16 working capital for its operations, reserve funds, or

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

18 encumber the property or funds of the Authority and to

19 contract with or engage the services of any person in

20 connection with any financing, including financial

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

22 enter into reimbursement agreements with this person or

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

24 the person or entity.

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

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

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

2 property to the Authority.

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

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

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

6 participate in joint self-insurance pools or entities to

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

8 indemnification of its officers, members, employees,

9 contractors, or agents against any and all risks.

10 (17) Exercise all the corporate powers granted

11 Illinois corporations under the Business Corporation Act

12 of 1983, except to the extent that the powers are

13 inconsistent with those of a body politic and municipal

14 corporation.

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

16 the powers granted by this Act.

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

18 requirements imposed on other owners licensees to conduct all

19 background investigations required under the Illinois Gambling

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

21 also extend to senior legal, financial, and administrative

22 staff of the Authority.

23 Section 1-32. Ethical conduct.

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

25 must carry out their duties and responsibilities in such a

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1 manner as to promote and preserve public trust and confidence

2 in the integrity and conduct of gaming.

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

4 duties, Casino Board members and employees of the Authority

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

6 or in an electronic gaming facility licensed by the Illinois

7 Gaming Board or engage in legalized gambling in any

8 establishment identified by Gaming Board action that, in the

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

10 conflict of interest.

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

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

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

14 influence for himself or herself or others.

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

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

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

18 official duties. Employees may engage in other gainful

19 employment so long as that employment does not interfere or

20 conflict with their duties. Such employment must be disclosed

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

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

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

24 employment, communications, or any activity identified by the

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

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

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1 a conflict of interest.

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

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

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

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

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

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

8 Authority. This prohibition shall extend to the holding or

9 acquisition of an interest in any entity identified by the

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

11 either entity, could represent the potential for or the

12 appearance of a financial interest. The holding or acquisition

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

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

15 the Gaming Board may identify specific investments or funds

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

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

18 of interest.

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

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

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

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

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

24 doing business with the Authority.

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

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

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

2 employment, knowingly accept employment or receive

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

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

5 Authority that resulted in contracts with an aggregate value of

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

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

8 or its parent or affiliate.

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

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

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

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

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

14 entity in any contract or subcontract for the performance of

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

16 the holding or acquisition of an interest in any entity

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

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

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

20 acquisition of an interest in such entities through an indirect

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

22 except that the Gaming Board may identify specific investments

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

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

25 a conflict of interest.

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

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

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

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

4 exception of unsolicited items of an incidental nature, from

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

6 Authority.

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

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

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

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

11 immediately after termination of employment, knowingly accept

12 employment or receive compensation or fees for services from a

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

14 in business with the Authority that resulted in contracts with

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

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

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

18 entity, or its parent or affiliate.

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

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

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

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

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

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

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

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

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

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

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

4 shall, within one year immediately preceding appointment by the

5 Mayor or employment, have been employed or received

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

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

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

9 the Illinois Gambling Act.

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

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

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

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

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

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

16 the official within 30 days after the communication and shall

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

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

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

20 brief summary of the communication, the action requested or

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

22 the person making the response, and any other pertinent

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

24 digital, then the entire communication shall be disclosed.

25 Public disclosure of the written summary provided to the

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

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1 exemptions provided under Section 7 of the Freedom of

2 Information Act.

3 This subsection (n) shall not apply to communications

4 regarding traffic, law enforcement, security, environmental

5 issues, City services, transportation, or other routine

6 matters concerning the ordinary operations of the casino.

7 (o) For purposes of this Section:

8 "Ordinary operations" means operations relating to the

9 casino facility other than the conduct of gambling activities.

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

11 renewal, and other processes associated with City permits and

12 licenses.

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

14 City who provide services to the Authority or otherwise

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

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

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

18 4 felony.

19 Section 1-45. Casino management contracts.

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

21 rules, the Casino Board shall develop and administer a

22 competitive sealed bidding process for the selection of a

23 potential casino operator licensee to develop or operate a

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

25 more requests for proposals. The Casino Board may establish

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1 minimum financial and investment requirements to determine the

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

3 requests for proposals, and may establish and consider such

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

5 impose a reasonable fee upon persons who respond to requests

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

7 costs in preparing and issuing the requests and reviewing the

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

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

10 opportunity to review the competitive bidding process

11 established by the Casino Board. During the competitive bidding

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

13 of the process and the responses received in connection with

14 the Casino Board's requests for proposals.

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

16 submitting bids and proposals has passed, the Casino Board

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

18 the Casino Board shall not be required to disclose any

19 information which would be exempt from disclosure under Section

20 7 of the Freedom of Information Act. Thereafter, the Casino

21 Board shall evaluate the responses to its requests for

22 proposals and the ability of all persons or entities responding

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

24 Act and any relevant provisions of the Illinois Gambling Act

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

26 requests for proposals.

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1 (c) After reviewing proposals and selecting a successful

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

3 contract with the successful bidder authorizing the operation

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

5 background investigation and approval by the Gaming Board. The

6 Gaming Board shall complete its background investigation and

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

8 that the proposed casino operator submits its application to

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

10 background investigation and approval within the 6-month

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

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

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

14 determination and when it reasonably expects to make a final

15 determination. Validity of the casino management contract is

16 contingent upon the issuance of a casino operator license to

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

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

19 executed casino management contract to the Gaming Board.

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

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

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

23 the Casino Board, the Authority may conduct gaming operations

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

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

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

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

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

3 complete the permanent facility. The Gaming Board may grant

4 additional extensions following further public hearings. Each

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

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

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

8 for a casino management contract or an executed casino

9 management contract must be transmitted to the State and

10 deposited into the Gaming Facilities Fee Revenue Fund. The

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

12 the Authority as reimbursement for its costs in preparing or

13 issuing the requests for proposals and reviewing the proposals

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

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

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

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

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

19 the Illinois Gambling Act or any other financial obligation of

20 the Authority.

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

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

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

24 Information Act.

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

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

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

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

5 casino operator licensee pursuant to a casino management

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

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

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

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

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

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

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

13 the construction, maintenance, and modernization of schools.

14 Section 1-60. Auditor General.

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

16 Authority shall submit to the Auditor General a certification

17 that:

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

19 (2) scheduled annual payments of principal and

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

21 Section 1-75 of this Act;

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

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

24 deposits to funds and accounts established with respect to

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

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

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

3 The Authority also shall submit to the Auditor General its

4 projections on revenues to be generated and pledged to

5 repayment of the bonds as scheduled and such other information

6 as the Auditor General may reasonably request.

7 The Auditor General shall examine the certifications and

8 information submitted and submit a report to the Authority and

9 the Gaming Board indicating whether the required

10 certifications, projections, and other information have been

11 submitted by the Authority and whether the assumptions

12 underlying the projections are not unreasonable in the

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

14 than 60 days after receiving the information required to be

15 submitted by the Authority.

16 The Auditor General shall submit a bill to the Authority

17 for costs associated with the examinations and report required

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

19 manner.

20 (b) The Authority shall enter into an intergovernmental

21 agreement with the Auditor General authorizing the Auditor

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

23 the Authority performed by the Authority's certified public

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

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

26 licensee. The Auditor General shall provide the Authority and

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

2 her Internet website such portions of the audit or other

3 financial information as generally would be made publicly

4 available for other owners licensees under the Illinois

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

6 Authority for costs associated with the review and the audit

7 required under this Section, which costs shall not exceed

8 $100,000, and the Authority shall reimburse the Auditor General

9 for such costs in a timely manner.

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

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

12 Authority's utilization of minority-owned business enterprises

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

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

15 development and construction of the casino as authorized under

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

17 work with the Advisory Committee in accumulating necessary

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

19 to the General Assembly and to the City.

20 The Committee shall consist of 9 members as provided in

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

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

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

24 General Assembly. The Advisory Committee shall meet

25 periodically and shall report the information to the Mayor of

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

2 year.

3 The Advisory Committee shall be dissolved on the date that

4 casino gambling operations are first conducted at a permanent

5 facility under the license authorized under Section 7 of the

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

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

8 in Section 2 of the Business Enterprise for Minorities,

9 Females, and Persons with Disabilities Act.

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

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

12 acquire, by eminent domain or by condemnation proceedings in

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

14 property or interests in real or personal property located in

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

16 acquired. The acquisition of property under this Section is

17 declared to be for a public use.

18 Section 1-67. Gaming at Chicago airports prohibited.The

19 Authority may not conduct gaming operations in an airport.

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

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

22 Board, the casino facilities and operations therein shall be

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

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1 construction, development, and operation of the casino shall

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

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

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

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

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

7 Gaming Board shall be responsible for the investigation for and

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

9 Gambling Act.

10 Section 1-75. Borrowing.

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

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

13 to provide funds for land acquisition, site assembly and

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

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

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

17 off-site infrastructure improvements required in connection

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

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

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

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

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

23 credit enhancement, and other legal expenses of the

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

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

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1 certificates, refunding bonds, or any other evidence of

2 obligation for borrowed money issued under this Section. Bonds

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

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

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

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

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

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

9 bid proceeds, charges, lease payments, payments required

10 pursuant to any casino management contract or other revenues

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

12 payments by financial institutions, insurance companies, or

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

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

15 from funds or accounts maintained pursuant to a bond resolution

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

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

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

19 pursuant to any guaranty agreement.

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

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

22 between the Authority and a corporate trustee or trustees,

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

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

25 following requirements:

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

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

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

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

4 resolution or indenture authorizing the issuance of such

5 bonds.

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

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

8 the resolution or indenture authorizing the issuance of

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

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

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

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

13 sale.

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

15 denominations and form, including book entry form, either

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

17 privileges as to exchange, transfer or conversion, and

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

19 resolution or trust indenture may provide.

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

21 United States at a designated place.

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

23 payment, redemption, refunding, or refinancing that the

24 resolution or trust indenture provides.

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

26 signatures of the officers of the Authority designated by

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

2 for one who has ceased to hold office.

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

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

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

6 provisions of the Local Government Debt Reform Act.

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

8 respect to contracts relating to underwriters, bond counsel,

9 financial advisors, and accountants. The program shall include

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

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

12 businesses and female-owned businesses as defined in the

13 Business Enterprise for Minorities, Females, and Persons with

14 Disabilities Act. The Authority shall conduct outreach to

15 minority-owned businesses and female-owned businesses.

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

17 in periodicals and newspapers, mailings, and other appropriate

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

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

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

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

22 fees.

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

24 Gaming Board regarding pledging of interests in holders of

25 owners licenses, any resolution or trust indenture may contain

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

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1 of the bonds as to the following:

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

3 investment, or disposition of revenues of the Authority or

4 proceeds or benefits of any contract, including without

5 limitation any rights in any casino management contract.

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

7 service reserves, replacement or operating reserves, cost

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

9 investment, and disposition thereof.

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

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

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

13 applied or made.

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

15 terms upon which additional bonds may be issued and

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

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

18 bonds.

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

20 of outstanding bonds.

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

22 contract with bondholders may be altered or amended and the

23 amount of bonds and holders of which must consent thereto

24 and the manner in which consent shall be given.

25 (7) Defining the acts or omissions that shall

26 constitute a default in the duties of the Authority to

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1 holders of bonds and providing the rights or remedies of

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

3 provisions restricting individual rights of action by

4 bondholders.

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

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

7 benefit of bondholders.

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

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

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

11 bonds.

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

13 with the provisions of the Local Government Credit Enhancement

14 Act.

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

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

17 obligations under any casino management contract shall be valid

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

19 and receipts pledged shall immediately be subject to the lien

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

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

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

23 otherwise against the Authority, irrespective of whether the

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

25 agreement or financing statement, continuation statement, or

26 other instrument adopted or entered into by the Authority need

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

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

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

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

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

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

7 payment of principal and interest thereon, and any redemption

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

9 be considered outstanding for the purposes of this subsection.

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

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

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

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

14 the Authority may not require the application of State revenues

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

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

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

18 official statements on the bonds.

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

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

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

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

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

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

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

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

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1 Authority is authorized to include this pledge and agreement in

2 any contract with the owners of bonds issued under this

3 Section.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

18 agreements or contracts with any necessary or appropriate

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

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

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

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

23 limitation, agreements or contracts commonly known as

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

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

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1 agreements or contracts providing for payments based on levels

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

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

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

5 or contract shall be solely an obligation or indebtedness of

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

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

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

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

10 Illinois, all governmental entities, all public officers,

11 banks, bankers, trust companies, savings banks and

12 institutions, building and loan associations, savings and loan

13 associations, investment companies, and other persons carrying

14 on a banking business, insurance companies, insurance

15 associations, and other persons carrying on an insurance

16 business, and all executors, administrators, guardians,

17 trustees, and other fiduciaries may legally invest any sinking

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

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

20 this Section shall be construed as relieving any person or

21 entity from any duty of exercising reasonable care in selecting

22 securities for purchase or investment.

23 Section 1-105. Budgets and reporting.

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

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

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

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

4 estimated revenues and shall provide for payment of its

5 obligations and estimated expenditures for the fiscal year,

6 including, without limitation, expenditures for

7 administration, operation, maintenance and repairs, debt

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

9 projects.

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

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

12 accountants selected by the Casino Board in accordance with the

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

14 website such financial information as is required to be posted

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

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

17 an annual report setting forth information concerning its

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

19 of the casino. The annual report shall include financial

20 information of the Authority consistent with that which is

21 required for all other owners licensees under the Illinois

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

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

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

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

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

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

2 120 days after the end of the Authority's fiscal year, as soon

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

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

5 Government Forecasting and Accountability.

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

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

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

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

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

11 2 officers or employees designated by the Casino Board.

12 Notwithstanding any other provision of this Section, the Casino

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

14 employee of the Authority to authorize the wire transfer of

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

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

17 employee benefits-related expenses.

18 No bank or savings and loan association shall receive

19 public funds as permitted by this Section unless it has

20 complied with the requirements established pursuant to Section

21 6 of the Public Funds Investment Act.

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

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

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

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

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1 signature shall nevertheless be valid and sufficient for all

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

3 office until delivery thereof.

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

5 operator licensee; disclosure requirements.

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

7 contracts with the Authority or casino operator licensee shall

8 disclose the identity of all officers and directors and every

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

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

11 total distributable income of any corporation having any

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

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

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

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

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

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

18 the corporation shall fulfill the disclosure statement

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

20 contractor shall notify the Authority of any changes in

21 officers, directors, ownership, or individuals having a

22 beneficial interest of more than 1%. Notwithstanding the

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

24 rules in connection with contractors for contracts with the

25 Authority or the casino operator licensee.

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

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

3 period to exceed one year shall disclose all political

4 contributions of the bidder, respondent, offeror, or

5 contractor and any affiliated person or entity. Disclosure

6 shall include at least the names and addresses of the

7 contributors and the dollar amounts of any contributions to any

8 political committee made within the previous 2 years. The

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

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

11 websites of the Authority and the Gaming Board.

12 (c) As used in this Section:

13 "Contribution" means contribution as defined in Section

14 9-1.4 of the Election Code.

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

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

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

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

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

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

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

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

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

24 sponsoring entity.

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

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

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1 Section occurs. The Authority may direct a casino operator

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

3 occurs.

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

5 casino and related gaming activities shall be entered into by

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

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

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

9 approval requirements as would be applied to any other owners

10 licensee under the Illinois Gambling Act.

11 Section 1-115. Purchasing.

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

13 Authority to serve as the Chief Procurement Officer for the

14 Authority. The Chief Procurement Officer shall have all powers

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

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

17 this Section, the Chief Procurement Officer of the Authority

18 shall conduct procurements on behalf of the Authority subject

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

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

21 Illinois Municipal Code.

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

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

24 the Casino Board and executive director of the Authority.

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

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1 executed by the Chief Procurement Officer for the Authority and

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

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

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

5 materials, equipment, and services for amounts greater than

6 $25,000 shall be let by a competitive selection process to the

7 lowest responsible proposer, after advertising for proposals,

8 except for the following:

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

10 services are required for equipment or services previously

11 furnished or contracted for;

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

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

14 are required;

15 (3) casino management contracts, which shall be

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

17 (4) contracts where there is only one economically

18 feasible source;

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

20 emergency basis because there exists a threat to public

21 health or public safety, or when immediate expenditure is

22 necessary for repairs to Authority property in order to

23 protect against further loss of or damage to Authority

24 property, to prevent or minimize serious disruption in

25 Authority services or to ensure the integrity of Authority

26 records;

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1 (6) contracts for professional services other than for

2 management of the casino, except such contracts described

3 in subsection (d) of this Section; and

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

5 movement, or installation of (i) data processing

6 equipment, software, and services and (ii)

7 telecommunications equipment, software, and services.

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

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

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

11 process to the most highly qualified firm that agrees to

12 compensation and other terms of engagement that are both

13 reasonable and acceptable to the Casino Board.

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

15 by competitive selection process whenever possible, and in any

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

17 the public.

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

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

20 individual having a beneficial interest, directly or

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

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

23 experience, adequacy of equipment, and ability to complete

24 performance within the time set, and other factors besides

25 financial responsibility. No such contract shall be awarded to

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

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1 purchase or expenditure) unless authorized or approved by a

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

3 is accompanied by a written statement setting forth the reasons

4 for not awarding the contract to the highest or lowest

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

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

7 public inspection.

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

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

10 re-advertisement, no responsible and satisfactory proposals,

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

12 Authority may award such contract without competitive

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

14 Authority than any valid proposal received pursuant to

15 advertisement.

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

17 published at least once in a daily newspaper of general

18 circulation published in the City at least 10 calendar days

19 before the time for receiving proposals and in an online

20 bulletin published on the Authority's website. Such

21 advertisements shall state the time and place for receiving and

22 opening of proposals and, by reference to plans and

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

24 in the advertisement itself, shall describe the character of

25 the proposed contract in sufficient detail to fully advise

26 prospective proposers of their obligations and to ensure free

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1 and open competitive selection.

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

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

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

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

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

7 fixed by the Authority before advertising for proposals, shall

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

9 of the contract with surety or sureties satisfactory to the

10 Authority and adequate insurance may be required in reasonable

11 amounts to be fixed by the Authority before advertising for

12 proposals.

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

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

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

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

17 subject to the exemptions from disclosure provided under

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

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

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

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

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

23 including renegotiated contracts and change orders, shall be

24 published in an online bulletin. The online bulletin must

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

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

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

2 information of how to obtain a comprehensive purchase

3 description and any disclosure and contract forms, and

4 encouragement to prospective vendors to hire qualified

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

6 Procurement Code, and Illinois residents discharged from any

7 Illinois adult correctional center subject to Gaming Board

8 licensing and eligibility rules. Notice of each and every

9 contract that is let or awarded, including renegotiated

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

11 bulletin and must include at least all of the information

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

13 successful responsible proposer or offeror, the contract

14 price, and the number of unsuccessful responsive proposers and

15 any other disclosure specified in this Section. This notice

16 must be posted in the online electronic bulletin prior to

17 execution of the contract.

18 Section 1-130. Affirmative action and equal opportunity

19 obligations of Authority.

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

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

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

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

24 and Women-Owned Business Enterprise Procurement Program for

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

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1 Chicago Municipal Code, as now or hereafter amended,

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

3 Women-Owned Business Enterprise Procurement Program.

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

5 with contractors' associations, labor unions, and the

6 contractors working on the development of the casino to

7 establish an apprenticeship preparedness training program to

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

9 journeymen and apprentices in the building trades and to enter

10 into agreements with community college districts or other

11 public or private institutions to provide readiness training.

12 The Authority is further authorized to enter into contracts

13 with public and private educational institutions and persons in

14 the gaming, entertainment, hospitality, and tourism industries

15 to provide training for employment in those industries.

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

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

18 otherwise convey any interest that they have in the casino

19 without prior approval of the Gaming Board and the General

20 Assembly.

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

22 casinos and casino gaming, casino gaming facilities, and casino

23 operator licensees under this Act are exclusive powers and

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

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1 license casinos, casino gaming, casino gaming facilities, or

2 casino operator licensees under this Act, except as provided

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

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

5 Article VII of the Illinois Constitution.

6 Section 1-145. Prohibition of political contributions from

7 casino operator licensees and applicants.

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

9 protecting the integrity of both the electoral process and the

10 legislative process by preventing corruption and the

11 appearance of corruption which may arise through permitting

12 certain political campaign contributions by certain persons

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

14 Unlike most other regulated industries, gaming is especially

15 susceptible to corruption and potential criminal influence. In

16 Illinois, only licensed gaming activities are legal and all

17 other gaming activities are strictly prohibited. Given these

18 circumstances, it is imperative to eliminate any potential

19 corrupt influence in the gaming industry and the electoral

20 process.

21 Banning political campaign contributions by certain

22 persons subject to this Section to State officeholders and

23 candidates for such offices and to county and municipal

24 officeholders and candidates for such offices in counties and

25 municipalities that receive financial benefits from gaming

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1 activities is necessary to prevent corruption and the

2 appearance of corruption that may arise when political campaign

3 contributions and gaming that is regulated by the State and

4 that confers benefits on counties and municipalities are

5 intermingled.

6 The General Assembly has prohibited political campaign

7 contributions to certain State and local officeholders and

8 candidates for such offices by certain persons with State of

9 Illinois and Metropolitan Pier and Exposition Authority

10 contracts and pending bids or proposals for contracts of over

11 $50,000 and certain individuals and entities affiliated with

12 such persons. Certain gaming licensees will receive receipts

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

14 such other campaign contribution prohibitions.

15 (b) As used in this Section:

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

17 operating subsidiary of the business entity applying for or

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

19 corporate parent of the business entity applying for or holding

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

21 States Internal Revenue Service as a tax-exempt organization

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

23 1986 (or any successor provision of federal tax law)

24 established by one or more business entities seeking or holding

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

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

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1 political committee for which the business entity applying for

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

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

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

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

6 applying for or holding a license shall be aggregated in

7 determining whether such political committee is an affiliated

8 entity.

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

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

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

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

13 person designated as a key person under the Illinois Gambling

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

15 through (iii).

16 "Business entity" means any entity doing business for

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

18 proprietorship, limited liability company, or partnership or

19 otherwise.

20 "Contribution" means a contribution as defined in Section

21 9-1.4 of the Election Code.

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

23 statement of candidacy and petition for nomination or election

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

25 the office of the appropriate election authority for any county

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

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1 which receives any gaming revenue.

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

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

4 officer or director of a business entity applying for or

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

6 who is required to register under the Lobbyist Registration

7 Act.

8 "License" means the casino operator license issued

9 pursuant to this Act.

10 "Officeholder" means the Governor, Lieutenant Governor,

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

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

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

14 electronic gaming device is located or proposed or that

15 receives any gaming revenue.

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

17 license, any affiliated entities or persons of such business

18 entity, and any entities or persons soliciting a contribution

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

20 or business entity, are prohibited from making any contribution

21 to any officeholder or declared candidate or any political

22 committee affiliated with any officeholder or declared

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

24 This prohibition shall commence upon filing of an application

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

26 termination, suspension or revocation of the license.

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

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

3 $100,000 for each violation of this subsection (c). A notice of

4 each such violation and the penalty imposed shall be published

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

6 Register. Payments received by the State pursuant to this

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

8 Fund.

9 Any officeholder or declared candidate or any political

10 committee affiliated with any officeholder or declared

11 candidate that has received a contribution in violation of this

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

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

14 the violation concerning the contribution appears in the

15 Illinois Register. Payments received by the State pursuant to

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

17 Fund.

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

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

20 prohibited from making contributions to any officeholder or

21 declared candidate political committee pursuant to subsection

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

23 every 6 months.

24 Any person, business entity, or affiliated entity

25 prohibited from making contributions to any officeholder or

26 declared candidate political committee pursuant to subsection

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

2 discovering any necessary change or addition to the information

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

4 contained in the list.

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

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

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

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

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

10 invalidity of that provision or application does not affect the

11 other provisions or applications of this Section that can be

12 given effect without the invalid application or provision.

13 ARTICLE 90.

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

15 the following findings:

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

17 education funding since 2009 is approximately

18 $861,000,000.

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

20 Illinois common schools has been underfunded as a result of

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

22 districts that are less than the foundational level of

23 $6,119 per pupil, which represents the minimum each pupil

24 needs to be educated.

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

2 necessary in order to fully fund the foundation level and

3 to maintain and support education in Illinois.

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

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

6 reversed if this amendatory Act of the 98th General

7 Assembly would be enacted.

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

9 verge of extinction due to fierce competition from fully

10 developed horse racing and gaming operations in other

11 states.

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

13 currently licensed gaming destinations, to maximize their

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

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

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

17 million in recurring annual tax revenue for the State to

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

19 promised under the capital plan occur on schedule.

20 (7) That Illinois agriculture and other businesses

21 that support and supply the horse racing industry, already

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

23 to substantially benefit and would be much more likely to

24 create additional jobs should Illinois horse racing once

25 again become competitive with other states.

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

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1 can be sure that significant job and economic growth will

2 in fact result from the previously enacted legislation.

3 (9) That gaming machines at Illinois horse racing

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

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

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

7 additional trade organization jobs necessary to construct

8 new facilities or remodel race tracks to operate electronic

9 gaming.

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

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

12 (5 ILCS 430/5-45)

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

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

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

16 within a period of one year immediately after termination of

17 State employment, knowingly accept employment or receive

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

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

20 immediately preceding termination of State employment,

21 participated personally and substantially in the award of State

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

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

24 entity, or its parent or subsidiary.

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

2 employee of the executive branch with regulatory or licensing

3 authority, or spouse or immediate family member living with

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

5 after termination of State employment, knowingly accept

6 employment or receive compensation or fees for services from a

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

8 year immediately preceding termination of State employment,

9 participated personally and substantially in making a

10 regulatory or licensing decision that directly applied to the

11 person or entity, or its parent or subsidiary.

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

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

14 branch constitutional officer and legislative leader, the

15 Auditor General, and the Joint Committee on Legislative Support

16 Services shall adopt a policy delineating which State positions

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

18 their duties, may have the authority to participate personally

19 and substantially in the award of State contracts or in

20 regulatory or licensing decisions. The Governor shall adopt

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

22 not under the jurisdiction and control of any other executive

23 branch constitutional officer.

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

25 shall be filed with the appropriate ethics commission

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

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1 the Office of the Auditor General.

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

3 determine that additional State positions under his or her

4 jurisdiction, not otherwise subject to the policies required by

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

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

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

8 licensing decisions.

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

10 the Auditor General, and each of the executive branch

11 constitutional officers and legislative leaders subject to

12 subsection (c) of this Section shall provide written

13 notification to all employees in positions subject to the

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

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

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

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

18 An employee receiving notification must certify in writing that

19 the person was advised of the prohibition and the requirement

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

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

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

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

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

25 during State employment or within a period of one year

26 immediately after termination of State employment shall, prior

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

2 Inspector General. Within 10 calendar days after receiving

3 notification from an employee in a position subject to the

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

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

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

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

8 relevant information, an Inspector General shall assess the

9 effect of the prospective employment or relationship upon

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

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

12 State employee in those decisions. A determination by an

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

14 Inspector General, and delivered to the subject of the

15 determination within 10 calendar days or the person is deemed

16 eligible for the employment opportunity. For purposes of this

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

18 members and employees of the legislative branch, the

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

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

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

22 executive branch officers and employees, the Inspector General

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

24 determination of an Inspector General and of any such appeal

25 shall be given to the ultimate jurisdictional authority, the

26 Attorney General, and the Executive Ethics Commission.

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1 (g) An Inspector General's determination regarding

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

3 appropriate Ethics Commission by the person subject to the

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

5 calendar day after the date of the determination.

6 On appeal, the Ethics Commission or Auditor General shall

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

8 determination. In deciding whether to uphold an Inspector

9 General's determination, the appropriate Ethics Commission or

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

11 information, the effect of the prospective employment or

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

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

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

15 The Ethics Commission shall decide whether to uphold an

16 Inspector General's determination within 10 calendar days or

17 the person is deemed eligible for the employment opportunity.

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

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

20 termination of office or State employment, knowingly accept

21 employment or receive compensation or fees for services from a

22 person or entity if the person or entity or its parent or

23 subsidiary, during the year immediately preceding termination

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

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

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

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1 the subject of a regulatory or licensing decision involving the

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

3 of whether he or she participated personally and substantially

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

5 of the regulatory or licensing decision in question:

6 (1) members or officers;

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

8 Illinois Constitution;

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

10 the advice and consent of the Senate;

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

12 division, bureau, authority, or other administrative unit

13 within the government of this State;

14 (5) chief procurement officers, State purchasing

15 officers, and their designees whose duties are directly

16 related to State procurement; ~~and~~

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

18 chiefs of staff, assistant chiefs of staff, and deputy

19 governors; ~~.~~

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

21 (8) employees of the Illinois Gaming Board.

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

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

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

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

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

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

2 defined under Article VII, Section 1 of the Illinois

3 Constitution, or (v) school districts.

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

5 (5 ILCS 430/20-10)

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

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

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

9 General, the Secretary of State, the Comptroller, and the

10 Treasurer and one for gaming activities. Each Office shall be

11 under the direction and supervision of an Executive Inspector

12 General and shall be a fully independent office with separate

13 appropriations.

14 (b) The Governor, Attorney General, Secretary of State,

15 Comptroller, and Treasurer shall each appoint an Executive

16 Inspector General, and the Governor shall appoint an Executive

17 Inspector General for gaming activities. Each appointment must

18 be madewithout regard to political affiliation and solely on

19 the basis of integrity and demonstrated ability. Appointments

20 shall be made by and with the advice and consent of the Senate

21 by three-fifths of the elected members concurring by record

22 vote. Any nomination not acted upon by the Senate within 60

23 session days of the receipt thereof shall be deemed to have

24 received the advice and consent of the Senate. If, during a

25 recess of the Senate, there is a vacancy in an office of

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1 Executive Inspector General, the appointing authority shall

2 make a temporary appointment until the next meeting of the

3 Senate when the appointing authority shall make a nomination to

4 fill that office. No person rejected for an office of Executive

5 Inspector General shall, except by the Senate's request, be

6 nominated again for that office at the same session of the

7 Senate or be appointed to that office during a recess of that

8 Senate.

9 Nothing in this Article precludes the appointment by the

10 Governor, Attorney General, Secretary of State, Comptroller,

11 or Treasurer of any other inspector general required or

12 permitted by law. The Governor, Attorney General, Secretary of

13 State, Comptroller, and Treasurer each may appoint an existing

14 inspector general as the Executive Inspector General required

15 by this Article, provided that such an inspector general is not

16 prohibited by law, rule, jurisdiction, qualification, or

17 interest from serving as the Executive Inspector General

18 required by this Article. An appointing authority may not

19 appoint a relative as an Executive Inspector General.

20 Each Executive Inspector General shall have the following

21 qualifications:

22 (1) has not been convicted of any felony under the laws

23 of this State, another State, or the United States;

24 (2) has earned a baccalaureate degree from an

25 institution of higher education; and

26 (3) has 5 or more years of cumulative service (A) with

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1 a federal, State, or local law enforcement agency, at least

2 2 years of which have been in a progressive investigatory

3 capacity; (B) as a federal, State, or local prosecutor; (C)

4 as a senior manager or executive of a federal, State, or

5 local agency; (D) as a member, an officer, or a State or

6 federal judge; or (E) representing any combination of (A)

7 through (D).

8 The term of each initial Executive Inspector General shall

9 commence upon qualification and shall run through June 30,

10 2008. The initial appointments shall be made within 60 days

11 after the effective date of this Act.

12 After the initial term, each Executive Inspector General

13 shall serve for 5-year terms commencing on July 1 of the year

14 of appointment and running through June 30 of the fifth

15 following year. An Executive Inspector General may be

16 reappointed to one or more subsequent terms.

17 A vacancy occurring other than at the end of a term shall

18 be filled by the appointing authority only for the balance of

19 the term of the Executive Inspector General whose office is

20 vacant.

21 Terms shall run regardless of whether the position is

22 filled.

23 (c) The Executive Inspector General appointed by the

24 Attorney General shall have jurisdiction over the Attorney

25 General and all officers and employees of, and vendors and

26 others doing business with, State agencies within the

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1 jurisdiction of the Attorney General. The Executive Inspector

2 General appointed by the Secretary of State shall have

3 jurisdiction over the Secretary of State and all officers and

4 employees of, and vendors and others doing business with, State

5 agencies within the jurisdiction of the Secretary of State. The

6 Executive Inspector General appointed by the Comptroller shall

7 have jurisdiction over the Comptroller and all officers and

8 employees of, and vendors and others doing business with, State

9 agencies within the jurisdiction of the Comptroller. The

10 Executive Inspector General appointed by the Treasurer shall

11 have jurisdiction over the Treasurer and all officers and

12 employees of, and vendors and others doing business with, State

13 agencies within the jurisdiction of the Treasurer. The

14 Executive Inspector General appointed by the Governor shall

15 have jurisdiction over (i) the Governor, (ii) the Lieutenant

16 Governor, (iii) all officers and employees of, and vendors and

17 others doing business with, executive branch State agencies

18 under the jurisdiction of the Executive Ethics Commission and

19 not within the jurisdiction of the Attorney General, the

20 Secretary of State, the Comptroller, ~~or~~ the Treasurer, or the

21 Executive Inspector General for gaming activities, and (iv) all

22 board members and employees of the Regional Transit Boards and

23 all vendors and others doing business with the Regional Transit

24 Boards.The Executive Inspector General for gaming activities

25 appointed by the Governor has jurisdiction over the Illinois

26 Gaming Board, all officers and employees of the Illinois Gaming

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1 Board, and all activities of the Illinois Gaming Board.

2 The jurisdiction of each Executive Inspector General is to

3 investigate allegations of fraud, waste, abuse, mismanagement,

4 misconduct, nonfeasance, misfeasance, malfeasance, or

5 violations of this Act or violations of other related laws and

6 rules.

7 (d) The compensation for each Executive Inspector General

8 shall be determined by the Executive Ethics Commission and

9 shall be made from appropriations made to the Comptroller for

10 this purpose. Subject to Section 20-45 of this Act, each

11 Executive Inspector General has full authority to organize his

12 or her Office of the Executive Inspector General, including the

13 employment and determination of the compensation of staff, such

14 as deputies, assistants, and other employees, as

15 appropriations permit. A separate appropriation shall be made

16 for each Office of Executive Inspector General.

17 (e) No Executive Inspector General or employee of the

18 Office of the Executive Inspector General may, during his or

19 her term of appointment or employment:

20 (1) become a candidate for any elective office;

21 (2) hold any other elected or appointed public office

22 except for appointments on governmental advisory boards or

23 study commissions or as otherwise expressly authorized by

24 law;

25 (3) be actively involved in the affairs of any

26 political party or political organization; or

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1 (4) advocate for the appointment of another person to

2 an appointed or elected office or position or actively

3 participate in any campaign for any elective office.

4 In this subsection an appointed public office means a

5 position authorized by law that is filled by an appointing

6 authority as provided by law and does not include employment by

7 hiring in the ordinary course of business.

8 (e-1) No Executive Inspector General or employee of the

9 Office of the Executive Inspector General may, for one year

10 after the termination of his or her appointment or employment:

11 (1) become a candidate for any elective office;

12 (2) hold any elected public office; or

13 (3) hold any appointed State, county, or local judicial

14 office.

15 (e-2) The requirements of item (3) of subsection (e-1) may

16 be waived by the Executive Ethics Commission.

17 (f) An Executive Inspector General may be removed only for

18 cause and may be removed only by the appointing~~constitutional~~

19 officer. At the time of the removal, the appointing

20 ~~constitutional~~officer must report to the Executive Ethics

21 Commission the justification for the removal.

22 (Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)

23 Section 90-5. The Alcoholism and Other Drug Abuse and

24 Dependency Act is amended by changing Section 5-20 as follows:

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1 (20 ILCS 301/5-20)

2 Sec. 5-20. Compulsive gambling program.

3 (a) Subject to appropriation, the Department shall

4 establish a program for public education, research, and

5 training regarding problem and compulsive gambling and the

6 treatment and prevention of problem and compulsive gambling.

7 Subject to specific appropriation for these stated purposes,

8 the program must include all of the following:

9 (1) Establishment and maintenance of a toll-free "800"

10 telephone number to provide crisis counseling and referral

11 services to families experiencing difficulty as a result of

12 problem or compulsive gambling.

13 (2) Promotion of public awareness regarding the

14 recognition and prevention of problem and compulsive

15 gambling.

16 (3) Facilitation, through in-service training and

17 other means, of the availability of effective assistance

18 programs for problem and compulsive gamblers.

19 (4) Conducting studies to identify adults and

20 juveniles in this State who are, or who are at risk of

21 becoming, problem or compulsive gamblers.

22 (b) Subject to appropriation, the Department shall either

23 establish and maintain the program or contract with a private

24 or public entity for the establishment and maintenance of the

25 program. Subject to appropriation, either the Department or the

26 private or public entity shall implement the toll-free

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1 telephone number, promote public awareness, and conduct

2 in-service training concerning problem and compulsive

3 gambling.

4 (c) Subject to appropriation, the Department shall produce

5 and supply the signs specified in Section 10.7 of the Illinois

6 Lottery Law, Section 34.1 of the Illinois Horse Racing Act of

7 1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1

8 of the Charitable Games Act, and Section 13.1 of the Illinois

9 ~~Riverboat~~Gambling Act.

10 (Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)

11 Section 90-6. The Department of Commerce and Economic

12 Opportunity Law of the Civil Administrative Code of Illinois is

13 amended by adding Sections 605-530, 605-535, and 605-540 as

14 follows:

15 (20 ILCS 605/605-530 new)

16 Sec. 605-530. The Depressed Communities Economic

17 Development Board.

18 (a) The Depressed Communities Economic Development Board

19 is created as an advisory board within the Department of

20 Commerce and Economic Opportunity. The Board shall consist of

21 the following members:

22 (1) 3 members appointed by the Governor, one of whom

23 shall be appointed to serve an initial term of one year and

24 2 of whom shall be appointed to serve an initial term of 2

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1 years;

2 (2) 2 members appointed by the Speaker of the House of

3 Representatives, one of whom shall be appointed to serve an

4 initial term of one year and one of whom shall be appointed

5 to serve an initial term of 2 years;

6 (3) 2 members appointed by the President of the Senate,

7 one of whom shall be appointed to serve an initial term of

8 one year and one of whom shall be appointed to serve an

9 initial term of 2 years;

10 (4) 2 members appointed by the Minority Leader of the

11 House of Representatives, one of whom shall be appointed to

12 serve an initial term of one year and one of whom shall be

13 appointed to serve an initial term of 2 years; and

14 (5) 2 members appointed by the Minority Leader of the

15 Senate, one of whom shall be appointed to serve an initial

16 term of one year and one of whom shall be appointed to

17 serve an initial term of 2 years.

18 The members of the Board shall elect a member to serve as

19 chair of the Board. The members of the Board shall reflect the

20 composition of the Illinois population with regard to ethnic

21 and racial composition.

22 After the initial terms, each member shall be appointed to

23 serve a term of 2 years and until his or her successor has been

24 appointed and assumes office. If a vacancy occurs in the Board

25 membership, then the vacancy shall be filled in the same manner

26 as the initial appointment. No member of the Board shall, at

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1 the time of his or her appointment or within 2 years before the

2 appointment, hold elected office or be appointed to a State

3 board, commission, or agency. All Board members are subject to

4 the State Officials and Employees Ethics Act.

5 (b) Board members shall serve without compensation, but may

6 be reimbursed for their reasonable travel expenses from funds

7 available for that purpose. The Department of Commerce and

8 Economic Opportunity shall provide staff and administrative

9 support services to the Board.

10 (c) The Board must make recommendations, which must be

11 approved by a majority of the Board, to the Department of

12 Commerce and Economic Opportunity concerning the award of

13 grants from amounts appropriated to the Department from the

14 Depressed Communities Economic Development Fund, a special

15 fund created in the State treasury. The Department must make

16 grants to public or private entities submitting proposals to

17 the Board to revitalize an Illinois depressed community. Grants

18 may be used by these entities only for those purposes

19 conditioned with the grant. For the purposes of this subsection

20 (c), plans for revitalizing an Illinois depressed community

21 include plans intended to curb high levels of poverty,

22 unemployment, job and population loss, and general distress. An

23 Illinois depressed community is an area where the poverty rate,

24 as determined by using the most recent data released by the

25 United States Census Bureau, is at least 3% greater than the

26 State poverty rate as determined by using the most recent data

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1 released by the United States Census Bureau.

2 (20 ILCS 605/605-535 new)

3 Sec. 605-535. The Commission on the Future of Economic

4 Development of the Latino Community.

5 (a) There is hereby created the Commission on the Future of

6 Economic Development of the Latino Community within the

7 Department. The purpose of the Commission shall be to maintain

8 and develop the economy of Latinos and to provide opportunities

9 for this community, which will enhance and expand the quality

10 of their lives.

11 The Commission shall concentrate its major efforts on

12 strategic planning, policy research and analysis, advocacy,

13 evaluation, and promoting coordination and collaboration.

14 During each regular legislative session, the Commission

15 must consult with appropriate legislative committees about the

16 State's economic development needs and opportunities in the

17 Latino community.

18 By October 1st of each even-numbered year, the Commission

19 must submit to the Governor and the General Assembly a biennial

20 comprehensive statewide economic development strategy for the

21 Latino community with a report on progress from the previous

22 comprehensive strategy.

23 The comprehensive statewide economic development strategy

24 may include, but is not limited to:

25 (1) an assessment of the Latino community's economic

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1 vitality;

2 (2) recommended goals, objectives, and priorities for

3 the next biennium and the future;

4 (3) a common set of outcomes and benchmarks for the

5 economic development system as a whole for the Latino

6 community;

7 (4) recommendations for removing barriers for Latinos

8 in employment;

9 (5) an inventory of existing relevant programs

10 compiled by the Commission from materials submitted by

11 agencies;

12 (6) recommendations for expanding, discontinuing, or

13 redirecting existing programs or adding new programs to

14 better serve the Latino community; and

15 (7) recommendations of best practices and public and

16 private sector roles in implementing the comprehensive

17 statewide economic development strategy.

18 In developing the biennial statewide economic development

19 strategy, goals, objectives, priorities, and recommendations,

20 the Commission shall consult, collaborate, and coordinate with

21 relevant State agencies, private sector business, nonprofit

22 organizations involved in economic development, trade

23 associations, associate development organizations, and

24 relevant local organizations in order to avoid duplication of

25 effort.

26 State agencies shall cooperate with the Commission and

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1 provide information as the Commission may reasonably request.

2 The Commission shall review and make budget

3 recommendations to the Governor's Office of Management and

4 Budget and the General Assembly in areas relating to the

5 economic development in the State's Latino community.

6 The Commission shall evaluate its own performance on a

7 regular basis.

8 The Commission may accept gifts, grants, donations,

9 sponsorships, or contributions from any federal, State, or

10 local governmental agency or program, or any private source,

11 and expend the same for any purpose consistent with this

12 Section.

13 (b) The Commission shall consist of 12 voting members,

14 appointed by the Governor, 4 of whom shall be appointed to

15 serve an initial term of one year, 4 of whom shall be appointed

16 to serve an initial term of 2 years, and 4 of whom shall be

17 appointed to serve an initial term of 3 years. After the

18 initial term, each member shall be appointed to a term of 3

19 years. Members of the Commission shall serve at the pleasure of

20 the Governor for not more than 2 consecutive 3-year terms. In

21 appointing members, the Governor shall appoint individuals

22 from the following private industry sectors:

23 (1) production agriculture;

24 (2) at least 2 individuals from manufacturing, one of

25 whom shall represent a company with no more than 75

26 employees;

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1 (3) transportation, construction, and logistics;

2 (4) travel and tourism;

3 (5) financial services and insurance;

4 (6) information technology and communications; and

5 (7) biotechnology.

6 The members of the Commission shall choose a member to

7 serve as chair of the Commission. The members of the Commission

8 shall be representative, to the extent possible, of the various

9 geographic areas of the State. The Director shall serve as an

10 ad hoc nonvoting member of the Commission. Vacancies shall be

11 filled in the same manner as the original appointments. The

12 members of the Commission shall serve without compensation.

13 (c) The Commission shall meet at least 4 times per year,

14 with at least one meeting each calendar quarter, at the call of

15 the director or 4 voting members of the Commission. The staff

16 and support for the Commission shall be provided by the

17 Department.

18 (d) The Commission and Department are encouraged to involve

19 other essential groups in the work of the Commission,

20 including, but not limited to:

21 (1) public universities;

22 (2) community colleges;

23 (3) other educational institutions; and

24 (4) the Department of Labor.

25 (e) The Commission shall make recommendations, which must

26 be approved by a majority of the members of the Commission, to

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1 the Department concerning the award of grants from amounts

2 appropriated to the Department from the Latino Community

3 Economic Development Fund, a special fund in the State

4 treasury. The Department shall make grants to public or private

5 entities submitting proposals to the Commission to assist in

6 the economic development of the Latino community. Grants may be

7 used by these entities only for those purposes conditioned with

8 the grant. The Commission shall coordinate with the Department

9 to develop grant criteria.

10 (f) For the purposes of this Section:

11 "Department" means the Department of Commerce and Economic

12 Opportunity.

13 "Director" means the Director of Commerce and Economic

14 Opportunity.

15 "Educational institutions" means nonprofit public and

16 private colleges, community colleges, State colleges, and

17 universities in this State.

18 (20 ILCS 605/605-540 new)

19 Sec. 605-540. The Commission on the Future of Economic

20 Development of the African American Community.

21 (a) There is hereby created the Commission on the Future of

22 Economic Development of the African American Community within

23 the Department. The purpose of the Commission shall be to

24 maintain and develop the economy of African Americans and to

25 provide opportunities for this community, which will enhance

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1 and expand the quality of their lives.

2 The Commission shall concentrate its major efforts on

3 strategic planning, policy research and analysis, advocacy,

4 evaluation, and promoting coordination and collaboration.

5 During each regular legislative session, the Commission

6 must consult with appropriate legislative committees about the

7 State's economic development needs and opportunities in the

8 African American community.

9 By October 1st of each even-numbered year, the Commission

10 must submit to the Governor and the General Assembly a biennial

11 comprehensive statewide economic development strategy for the

12 African American community with a report on progress from the

13 previous comprehensive strategy.

14 The comprehensive statewide economic development strategy

15 may include, but is not limited to:

16 (1) an assessment of the African American community's

17 economic vitality;

18 (2) recommended goals, objectives, and priorities for

19 the next biennium and the future;

20 (3) a common set of outcomes and benchmarks for the

21 economic development system as a whole for the African

22 American community;

23 (4) recommendations for removing barriers for African

24 Americans in employment;

25 (5) an inventory of existing relevant programs

26 compiled by the Commission from materials submitted by

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1 agencies;

2 (6) recommendations for expanding, discontinuing, or

3 redirecting existing programs or adding new programs to

4 better serve the African American community; and

5 (7) recommendations of best practices and public and

6 private sector roles in implementing the comprehensive

7 statewide economic development strategy.

8 In developing the biennial statewide economic development

9 strategy, goals, objectives, priorities, and recommendations,

10 the Commission shall consult, collaborate, and coordinate with

11 relevant State agencies, private sector business, nonprofit

12 organizations involved in economic development, trade

13 associations, associate development organizations, and

14 relevant local organizations in order to avoid duplication of

15 effort.

16 State agencies shall cooperate with the Commission and

17 provide information as the Commission may reasonably request.

18 The Commission shall review and make budget

19 recommendations to the Governor's Office of Management and

20 Budget and the General Assembly in areas relating to the

21 economic development in the State's African American

22 community.

23 The Commission shall evaluate its own performance on a

24 regular basis.

25 The Commission may accept gifts, grants, donations,

26 sponsorships, or contributions from any federal, State, or

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1 local governmental agency or program, or any private source,

2 and expend the same for any purpose consistent with this

3 Section.

4 (b) The Commission shall consist of 12 voting members,

5 appointed by the Governor, 4 of whom shall be appointed to

6 serve an initial term of one year, 4 of whom shall be appointed

7 to serve an initial term of 2 years, and 4 of whom shall be

8 appointed to serve an initial term of 3 years. After the

9 initial term, each member shall be appointed to a term of 3

10 years. Members of the Commission shall serve at the pleasure of

11 the Governor for not more than 2 consecutive 3-year terms. In

12 appointing members, the Governor shall appoint individuals

13 from the following private industry sectors:

14 (1) energy;

15 (2) at least 2 individuals from manufacturing, one of

16 whom shall represent a company with no more than 75

17 employees;

18 (3) transportation, construction, and logistics;

19 (4) travel and tourism;

20 (5) financial services and insurance;

21 (6) information technology and communications;

22 (7) biotechnology; and

23 (8) a member of the Illinois Black Chamber of Commerce.

24 The members of the Commission shall choose a member to

25 serve as chair of the Commission. The members of the Commission

26 shall be representative, to the extent possible, of the various

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1 geographic areas of the State. The Director shall serve as an

2 ad hoc nonvoting member of the Commission. Vacancies shall be

3 filled in the same manner as the original appointments. The

4 members of the Commission shall serve without compensation.

5 (c) The Commission shall meet at least 4 times per year,

6 with at least one meeting each calendar quarter, at the call of

7 the Director or 4 voting members of the Commission. The staff

8 and support for the Commission shall be provided by the

9 Department.

10 (d) The Commission and Department are encouraged to involve

11 other essential groups in the work of the Commission,

12 including, but not limited to:

13 (1) public universities;

14 (2) community colleges;

15 (3) other educational institutions; and

16 (4) the Department of Labor.

17 (e) The Commission shall make recommendations, which must

18 be approved by a majority of the members of the Commission, to

19 the Department concerning the award of grants from amounts

20 appropriated to the Department from the African American

21 Community Economic Development Fund, a special fund in the

22 State treasury. The Department shall make grants to public or

23 private entities submitting proposals to the Commission to

24 assist in the economic development of the African American

25 community. Grants may be used by these entities only for those

26 purposes conditioned with the grant. The Commission shall

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1 coordinate with the Department to develop grant criteria.

2 (f) For the purposes of this Section:

3 "Department" means the Department of Commerce and Economic

4 Opportunity.

5 "Director" means the Director of Commerce and Economic

6 Opportunity.

7 "Educational institutions" means nonprofit public and

8 private colleges, community colleges, State colleges, and

9 universities in this State.

10 Section 90-8. The Illinois Lottery Law is amended by

11 changing Section 9.1 as follows:

12 (20 ILCS 1605/9.1)

13 Sec. 9.1. Private manager and management agreement.

14 (a) As used in this Section:

15 "Offeror" means a person or group of persons that responds

16 to a request for qualifications under this Section.

17 "Request for qualifications" means all materials and

18 documents prepared by the Department to solicit the following

19 from offerors:

20 (1) Statements of qualifications.

21 (2) Proposals to enter into a management agreement,

22 including the identity of any prospective vendor or vendors

23 that the offeror intends to initially engage to assist the

24 offeror in performing its obligations under the management

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1 agreement.

2 "Final offer" means the last proposal submitted by an

3 offeror in response to the request for qualifications,

4 including the identity of any prospective vendor or vendors

5 that the offeror intends to initially engage to assist the

6 offeror in performing its obligations under the management

7 agreement.

8 "Final offeror" means the offeror ultimately selected by

9 the Governor to be the private manager for the Lottery under

10 subsection (h) of this Section.

11 (b) By September 15, 2010, the Governor shall select a

12 private manager for the total management of the Lottery with

13 integrated functions, such as lottery game design, supply of

14 goods and services, and advertising and as specified in this

15 Section.

16 (c) Pursuant to the terms of this subsection, the

17 Department shall endeavor to expeditiously terminate the

18 existing contracts in support of the Lottery in effect on the

19 effective date of this amendatory Act of the 96th General

20 Assembly in connection with the selection of the private

21 manager. As part of its obligation to terminate these contracts

22 and select the private manager, the Department shall establish

23 a mutually agreeable timetable to transfer the functions of

24 existing contractors to the private manager so that existing

25 Lottery operations are not materially diminished or impaired

26 during the transition. To that end, the Department shall do the

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1 following:

2 (1) where such contracts contain a provision

3 authorizing termination upon notice, the Department shall

4 provide notice of termination to occur upon the mutually

5 agreed timetable for transfer of functions;

6 (2) upon the expiration of any initial term or renewal

7 term of the current Lottery contracts, the Department shall

8 not renew such contract for a term extending beyond the

9 mutually agreed timetable for transfer of functions; or

10 (3) in the event any current contract provides for

11 termination of that contract upon the implementation of a

12 contract with the private manager, the Department shall

13 perform all necessary actions to terminate the contract on

14 the date that coincides with the mutually agreed timetable

15 for transfer of functions.

16 If the contracts to support the current operation of the

17 Lottery in effect on the effective date of this amendatory Act

18 of the 96th General Assembly are not subject to termination as

19 provided for in this subsection (c), then the Department may

20 include a provision in the contract with the private manager

21 specifying a mutually agreeable methodology for incorporation.

22 (c-5) The Department shall include provisions in the

23 management agreement whereby the private manager shall, for a

24 fee, and pursuant to a contract negotiated with the Department

25 (the "Employee Use Contract"), utilize the services of current

26 Department employees to assist in the administration and

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1 operation of the Lottery. The Department shall be the employer

2 of all such bargaining unit employees assigned to perform such

3 work for the private manager, and such employees shall be State

4 employees, as defined by the Personnel Code. Department

5 employees shall operate under the same employment policies,

6 rules, regulations, and procedures, as other employees of the

7 Department. In addition, neither historical representation

8 rights under the Illinois Public Labor Relations Act, nor

9 existing collective bargaining agreements, shall be disturbed

10 by the management agreement with the private manager for the

11 management of the Lottery.

12 (d) The management agreement with the private manager shall

13 include all of the following:

14 (1) A term not to exceed 10 years, including any

15 renewals.

16 (2) A provision specifying that the Department:

17 (A) shall exercise actual control over all

18 significant business decisions;

19 (A-5) has the authority to direct or countermand

20 operating decisions by the private manager at any time;

21 (B) has ready access at any time to information

22 regarding Lottery operations;

23 (C) has the right to demand and receive information

24 from the private manager concerning any aspect of the

25 Lottery operations at any time; and

26 (D) retains ownership of all trade names,

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1 trademarks, and intellectual property associated with

2 the Lottery.

3 (3) A provision imposing an affirmative duty on the

4 private manager to provide the Department with material

5 information and with any information the private manager

6 reasonably believes the Department would want to know to

7 enable the Department to conduct the Lottery.

8 (4) A provision requiring the private manager to

9 provide the Department with advance notice of any operating

10 decision that bears significantly on the public interest,

11 including, but not limited to, decisions on the kinds of

12 games to be offered to the public and decisions affecting

13 the relative risk and reward of the games being offered, so

14 the Department has a reasonable opportunity to evaluate and

15 countermand that decision.

16 (5) A provision providing for compensation of the

17 private manager that may consist of, among other things, a

18 fee for services and a performance based bonus as

19 consideration for managing the Lottery, including terms

20 that may provide the private manager with an increase in

21 compensation if Lottery revenues grow by a specified

22 percentage in a given year.

23 (6) (Blank).

24 (7) A provision requiring the deposit of all Lottery

25 proceeds to be deposited into the State Lottery Fund except

26 as otherwise provided in Section 20 of this Act.

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1 (8) A provision requiring the private manager to locate

2 its principal office within the State.

3 (8-5) A provision encouraging that at least 20% of the

4 cost of contracts entered into for goods and services by

5 the private manager in connection with its management of

6 the Lottery, other than contracts with sales agents or

7 technical advisors, be awarded to businesses that are a

8 minority owned business, a female owned business, or a

9 business owned by a person with disability, as those terms

10 are defined in the Business Enterprise for Minorities,

11 Females, and Persons with Disabilities Act.

12 (9) A requirement that so long as the private manager

13 complies with all the conditions of the agreement under the

14 oversight of the Department, the private manager shall have

15 the following duties and obligations with respect to the

16 management of the Lottery:

17 (A) The right to use equipment and other assets

18 used in the operation of the Lottery.

19 (B) The rights and obligations under contracts

20 with retailers and vendors.

21 (C) The implementation of a comprehensive security

22 program by the private manager.

23 (D) The implementation of a comprehensive system

24 of internal audits.

25 (E) The implementation of a program by the private

26 manager to curb compulsive gambling by persons playing

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1 the Lottery.

2 (F) A system for determining (i) the type of

3 Lottery games, (ii) the method of selecting winning

4 tickets, (iii) the manner of payment of prizes to

5 holders of winning tickets, (iv) the frequency of

6 drawings of winning tickets, (v) the method to be used

7 in selling tickets, (vi) a system for verifying the

8 validity of tickets claimed to be winning tickets,

9 (vii) the basis upon which retailer commissions are

10 established by the manager, and (viii) minimum

11 payouts.

12 (10) A requirement that advertising and promotion must

13 be consistent with Section 7.8a of this Act.

14 (11) A requirement that the private manager market the

15 Lottery to those residents who are new, infrequent, or

16 lapsed players of the Lottery, especially those who are

17 most likely to make regular purchases on the Internet as

18 permitted by law.

19 (12) A code of ethics for the private manager's

20 officers and employees.

21 (13) A requirement that the Department monitor and

22 oversee the private manager's practices and take action

23 that the Department considers appropriate to ensure that

24 the private manager is in compliance with the terms of the

25 management agreement, while allowing the manager, unless

26 specifically prohibited by law or the management

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1 agreement, to negotiate and sign its own contracts with

2 vendors.

3 (14) A provision requiring the private manager to

4 periodically file, at least on an annual basis, appropriate

5 financial statements in a form and manner acceptable to the

6 Department.

7 (15) Cash reserves requirements.

8 (16) Procedural requirements for obtaining the prior

9 approval of the Department when a management agreement or

10 an interest in a management agreement is sold, assigned,

11 transferred, or pledged as collateral to secure financing.

12 (17) Grounds for the termination of the management

13 agreement by the Department or the private manager.

14 (18) Procedures for amendment of the agreement.

15 (19) A provision requiring the private manager to

16 engage in an open and competitive bidding process for any

17 procurement having a cost in excess of $50,000 that is not

18 a part of the private manager's final offer. The process

19 shall favor the selection of a vendor deemed to have

20 submitted a proposal that provides the Lottery with the

21 best overall value. The process shall not be subject to the

22 provisions of the Illinois Procurement Code, unless

23 specifically required by the management agreement.

24 (20) The transition of rights and obligations,

25 including any associated equipment or other assets used in

26 the operation of the Lottery, from the manager to any

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1 successor manager of the lottery, including the

2 Department, following the termination of or foreclosure

3 upon the management agreement.

4 (21) Right of use of copyrights, trademarks, and

5 service marks held by the Department in the name of the

6 State. The agreement must provide that any use of them by

7 the manager shall only be for the purpose of fulfilling its

8 obligations under the management agreement during the term

9 of the agreement.

10 (22) The disclosure of any information requested by the

11 Department to enable it to comply with the reporting

12 requirements and information requests provided for under

13 subsection (p) of this Section.

14 (e) Notwithstanding any other law to the contrary, the

15 Department shall select a private manager through a competitive

16 request for qualifications process consistent with Section

17 20-35 of the Illinois Procurement Code, which shall take into

18 account:

19 (1) the offeror's ability to market the Lottery to

20 those residents who are new, infrequent, or lapsed players

21 of the Lottery, especially those who are most likely to

22 make regular purchases on the Internet;

23 (2) the offeror's ability to address the State's

24 concern with the social effects of gambling on those who

25 can least afford to do so;

26 (3) the offeror's ability to provide the most

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1 successful management of the Lottery for the benefit of the

2 people of the State based on current and past business

3 practices or plans of the offeror; and

4 (4) the offeror's poor or inadequate past performance

5 in servicing, equipping, operating or managing a lottery on

6 behalf of Illinois, another State or foreign government and

7 attracting persons who are not currently regular players of

8 a lottery.

9 (f) The Department may retain the services of an advisor or

10 advisors with significant experience in financial services or

11 the management, operation, and procurement of goods, services,

12 and equipment for a government-run lottery to assist in the

13 preparation of the terms of the request for qualifications and

14 selection of the private manager. Any prospective advisor

15 seeking to provide services under this subsection (f) shall

16 disclose any material business or financial relationship

17 during the past 3 years with any potential offeror, or with a

18 contractor or subcontractor presently providing goods,

19 services, or equipment to the Department to support the

20 Lottery. The Department shall evaluate the material business or

21 financial relationship of each prospective advisor. The

22 Department shall not select any prospective advisor with a

23 substantial business or financial relationship that the

24 Department deems to impair the objectivity of the services to

25 be provided by the prospective advisor. During the course of

26 the advisor's engagement by the Department, and for a period of

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1 one year thereafter, the advisor shall not enter into any

2 business or financial relationship with any offeror or any

3 vendor identified to assist an offeror in performing its

4 obligations under the management agreement. Any advisor

5 retained by the Department shall be disqualified from being an

6 offeror. The Department shall not include terms in the request

7 for qualifications that provide a material advantage whether

8 directly or indirectly to any potential offeror, or any

9 contractor or subcontractor presently providing goods,

10 services, or equipment to the Department to support the

11 Lottery, including terms contained in previous responses to

12 requests for proposals or qualifications submitted to

13 Illinois, another State or foreign government when those terms

14 are uniquely associated with a particular potential offeror,

15 contractor, or subcontractor. The request for proposals

16 offered by the Department on December 22, 2008 as

17 "LOT08GAMESYS" and reference number "22016176" is declared

18 void.

19 (g) The Department shall select at least 2 offerors as

20 finalists to potentially serve as the private manager no later

21 than August 9, 2010. Upon making preliminary selections, the

22 Department shall schedule a public hearing on the finalists'

23 proposals and provide public notice of the hearing at least 7

24 calendar days before the hearing. The notice must include all

25 of the following:

26 (1) The date, time, and place of the hearing.

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1 (2) The subject matter of the hearing.

2 (3) A brief description of the management agreement to

3 be awarded.

4 (4) The identity of the offerors that have been

5 selected as finalists to serve as the private manager.

6 (5) The address and telephone number of the Department.

7 (h) At the public hearing, the Department shall (i) provide

8 sufficient time for each finalist to present and explain its

9 proposal to the Department and the Governor or the Governor's

10 designee, including an opportunity to respond to questions

11 posed by the Department, Governor, or designee and (ii) allow

12 the public and non-selected offerors to comment on the

13 presentations. The Governor or a designee shall attend the

14 public hearing. After the public hearing, the Department shall

15 have 14 calendar days to recommend to the Governor whether a

16 management agreement should be entered into with a particular

17 finalist. After reviewing the Department's recommendation, the

18 Governor may accept or reject the Department's recommendation,

19 and shall select a final offeror as the private manager by

20 publication of a notice in the Illinois Procurement Bulletin on

21 or before September 15, 2010. The Governor shall include in the

22 notice a detailed explanation and the reasons why the final

23 offeror is superior to other offerors and will provide

24 management services in a manner that best achieves the

25 objectives of this Section. The Governor shall also sign the

26 management agreement with the private manager.

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1 (i) Any action to contest the private manager selected by

2 the Governor under this Section must be brought within 7

3 calendar days after the publication of the notice of the

4 designation of the private manager as provided in subsection

5 (h) of this Section.

6 (j) The Lottery shall remain, for so long as a private

7 manager manages the Lottery in accordance with provisions of

8 this Act, a Lottery conducted by the State, and the State shall

9 not be authorized to sell or transfer the Lottery to a third

10 party.

11 (k) Any tangible personal property used exclusively in

12 connection with the lottery that is owned by the Department and

13 leased to the private manager shall be owned by the Department

14 in the name of the State and shall be considered to be public

15 property devoted to an essential public and governmental

16 function.

17 (l) The Department may exercise any of its powers under

18 this Section or any other law as necessary or desirable for the

19 execution of the Department's powers under this Section.

20 (m) Neither this Section nor any management agreement

21 entered into under this Section prohibits the General Assembly

22 from authorizing forms of gambling that are not in direct

23 competition with the Lottery. The forms of gambling authorized

24 by this amendatory Act of the 98th General Assembly constitute

25 authorized forms of gambling that are not in direct competition

26 with the Lottery.

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1 (n) The private manager shall be subject to a complete

2 investigation in the third, seventh, and tenth years of the

3 agreement (if the agreement is for a 10-year term) by the

4 Department in cooperation with the Auditor General to determine

5 whether the private manager has complied with this Section and

6 the management agreement. The private manager shall bear the

7 cost of an investigation or reinvestigation of the private

8 manager under this subsection.

9 (o) The powers conferred by this Section are in addition

10 and supplemental to the powers conferred by any other law. If

11 any other law or rule is inconsistent with this Section,

12 including, but not limited to, provisions of the Illinois

13 Procurement Code, then this Section controls as to any

14 management agreement entered into under this Section. This

15 Section and any rules adopted under this Section contain full

16 and complete authority for a management agreement between the

17 Department and a private manager. No law, procedure,

18 proceeding, publication, notice, consent, approval, order, or

19 act by the Department or any other officer, Department, agency,

20 or instrumentality of the State or any political subdivision is

21 required for the Department to enter into a management

22 agreement under this Section. This Section contains full and

23 complete authority for the Department to approve any contracts

24 entered into by a private manager with a vendor providing

25 goods, services, or both goods and services to the private

26 manager under the terms of the management agreement, including

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1 subcontractors of such vendors.

2 Upon receipt of a written request from the Chief

3 Procurement Officer, the Department shall provide to the Chief

4 Procurement Officer a complete and un-redacted copy of the

5 management agreement or any contract that is subject to the

6 Department's approval authority under this subsection (o). The

7 Department shall provide a copy of the agreement or contract to

8 the Chief Procurement Officer in the time specified by the

9 Chief Procurement Officer in his or her written request, but no

10 later than 5 business days after the request is received by the

11 Department. The Chief Procurement Officer must retain any

12 portions of the management agreement or of any contract

13 designated by the Department as confidential, proprietary, or

14 trade secret information in complete confidence pursuant to

15 subsection (g) of Section 7 of the Freedom of Information Act.

16 The Department shall also provide the Chief Procurement Officer

17 with reasonable advance written notice of any contract that is

18 pending Department approval.

19 Notwithstanding any other provision of this Section to the

20 contrary, the Chief Procurement Officer shall adopt

21 administrative rules, including emergency rules, to establish

22 a procurement process to select a successor private manager if

23 a private management agreement has been terminated. The

24 selection process shall at a minimum take into account the

25 criteria set forth in items (1) through (4) of subsection (e)

26 of this Section and may include provisions consistent with

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1 subsections (f), (g), (h), and (i) of this Section. The Chief

2 Procurement Officer shall also implement and administer the

3 adopted selection process upon the termination of a private

4 management agreement. The Department, after the Chief

5 Procurement Officer certifies that the procurement process has

6 been followed in accordance with the rules adopted under this

7 subsection (o), shall select a final offeror as the private

8 manager and sign the management agreement with the private

9 manager.

10 Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and

11 21.8, the Department shall distribute all proceeds of lottery

12 tickets and shares sold in the following priority and manner:

13 (1) The payment of prizes and retailer bonuses.

14 (2) The payment of costs incurred in the operation and

15 administration of the Lottery, including the payment of

16 sums due to the private manager under the management

17 agreement with the Department.

18 (3) On the last day of each month or as soon thereafter

19 as possible, the State Comptroller shall direct and the

20 State Treasurer shall transfer from the State Lottery Fund

21 to the Common School Fund an amount that is equal to the

22 proceeds transferred in the corresponding month of fiscal

23 year 2009, as adjusted for inflation, to the Common School

24 Fund.

25 (4) On or before the last day of each fiscal year,

26 deposit any remaining proceeds, subject to payments under

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1 items (1), (2), and (3) into the Capital Projects Fund each

2 fiscal year.

3 (p) The Department shall be subject to the following

4 reporting and information request requirements:

5 (1) the Department shall submit written quarterly

6 reports to the Governor and the General Assembly on the

7 activities and actions of the private manager selected

8 under this Section;

9 (2) upon request of the Chief Procurement Officer, the

10 Department shall promptly produce information related to

11 the procurement activities of the Department and the

12 private manager requested by the Chief Procurement

13 Officer; the Chief Procurement Officer must retain

14 confidential, proprietary, or trade secret information

15 designated by the Department in complete confidence

16 pursuant to subsection (g) of Section 7 of the Freedom of

17 Information Act; and

18 (3) at least 30 days prior to the beginning of the

19 Department's fiscal year, the Department shall prepare an

20 annual written report on the activities of the private

21 manager selected under this Section and deliver that report

22 to the Governor and General Assembly.

23 (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,

24 eff. 12-23-09; 97-464, eff. 8-19-11; revised 10-17-12.)

25 Section 90-10. The Department of Revenue Law of the Civil

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1 Administrative Code of Illinois is amended by changing Section

2 2505-305 as follows:

3 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)

4 Sec. 2505-305. Investigators.

5 (a) The Department has the power to appoint investigators

6 to conduct all investigations, searches, seizures, arrests,

7 and other duties imposed under the provisions of any law

8 administered by the Department. Except as provided in

9 subsection (c), these investigators have and may exercise all

10 the powers of peace officers solely for the purpose of

11 enforcing taxing measures administered by the Department.

12 (b) The Director must authorize to each investigator

13 employed under this Section and to any other employee of the

14 Department exercising the powers of a peace officer a distinct

15 badge that, on its face, (i) clearly states that the badge is

16 authorized by the Department and (ii) contains a unique

17 identifying number. No other badge shall be authorized by the

18 Department.

19 (c) The Department may enter into agreements with the

20 Illinois Gaming Board providing that investigators appointed

21 under this Section shall exercise the peace officer powers set

22 forth in paragraph (20.6) of subsection (c) of Section 5 of the

23 Illinois ~~Riverboat~~Gambling Act.

24 (Source: P.A. 96-37, eff. 7-13-09.)

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1 Section 90-12. The Illinois State Auditing Act is amended

2 by changing Section 3-1 as follows:

3 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)

4 Sec. 3-1. Jurisdiction of Auditor General. The Auditor

5 General has jurisdiction over all State agencies to make post

6 audits and investigations authorized by or under this Act or

7 the Constitution.

8 The Auditor General has jurisdiction over local government

9 agencies and private agencies only:

10 (a) to make such post audits authorized by or under

11 this Act as are necessary and incidental to a post audit of

12 a State agency or of a program administered by a State

13 agency involving public funds of the State, but this

14 jurisdiction does not include any authority to review local

15 governmental agencies in the obligation, receipt,

16 expenditure or use of public funds of the State that are

17 granted without limitation or condition imposed by law,

18 other than the general limitation that such funds be used

19 for public purposes;

20 (b) to make investigations authorized by or under this

21 Act or the Constitution; and

22 (c) to make audits of the records of local government

23 agencies to verify actual costs of state-mandated programs

24 when directed to do so by the Legislative Audit Commission

25 at the request of the State Board of Appeals under the

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1 State Mandates Act.

2 In addition to the foregoing, the Auditor General may

3 conduct an audit of the Metropolitan Pier and Exposition

4 Authority, the Regional Transportation Authority, the Suburban

5 Bus Division, the Commuter Rail Division and the Chicago

6 Transit Authority and any other subsidized carrier when

7 authorized by the Legislative Audit Commission. Such audit may

8 be a financial, management or program audit, or any combination

9 thereof.

10 The audit shall determine whether they are operating in

11 accordance with all applicable laws and regulations. Subject to

12 the limitations of this Act, the Legislative Audit Commission

13 may by resolution specify additional determinations to be

14 included in the scope of the audit.

15 In addition to the foregoing, the Auditor General must also

16 conduct a financial audit of the Illinois Sports Facilities

17 Authority's expenditures of public funds in connection with the

18 reconstruction, renovation, remodeling, extension, or

19 improvement of all or substantially all of any existing

20 "facility", as that term is defined in the Illinois Sports

21 Facilities Authority Act.

22 The Auditor General may also conduct an audit, when

23 authorized by the Legislative Audit Commission, of any hospital

24 which receives 10% or more of its gross revenues from payments

25 from the State of Illinois, Department of Healthcare and Family

26 Services (formerly Department of Public Aid), Medical

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1 Assistance Program.

2 The Auditor General is authorized to conduct financial and

3 compliance audits of the Illinois Distance Learning Foundation

4 and the Illinois Conservation Foundation.

5 As soon as practical after the effective date of this

6 amendatory Act of 1995, the Auditor General shall conduct a

7 compliance and management audit of the City of Chicago and any

8 other entity with regard to the operation of Chicago O'Hare

9 International Airport, Chicago Midway Airport and Merrill C.

10 Meigs Field. The audit shall include, but not be limited to, an

11 examination of revenues, expenses, and transfers of funds;

12 purchasing and contracting policies and practices; staffing

13 levels; and hiring practices and procedures. When completed,

14 the audit required by this paragraph shall be distributed in

15 accordance with Section 3-14.

16 The Auditor General shall conduct a financial and

17 compliance and program audit of distributions from the

18 Municipal Economic Development Fund during the immediately

19 preceding calendar year pursuant to Section 8-403.1 of the

20 Public Utilities Act at no cost to the city, village, or

21 incorporated town that received the distributions.

22 The Auditor General must conduct an audit of the Health

23 Facilities and Services Review Board pursuant to Section 19.5

24 of the Illinois Health Facilities Planning Act.

25 The Auditor General must conduct an audit of the Chicago

26 Casino Development Authority pursuant to Section 1-60 of the

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1 Chicago Casino Development Authority Act.

2 The Auditor General of the State of Illinois shall annually

3 conduct or cause to be conducted a financial and compliance

4 audit of the books and records of any county water commission

5 organized pursuant to the Water Commission Act of 1985 and

6 shall file a copy of the report of that audit with the Governor

7 and the Legislative Audit Commission. The filed audit shall be

8 open to the public for inspection. The cost of the audit shall

9 be charged to the county water commission in accordance with

10 Section 6z-27 of the State Finance Act. The county water

11 commission shall make available to the Auditor General its

12 books and records and any other documentation, whether in the

13 possession of its trustees or other parties, necessary to

14 conduct the audit required. These audit requirements apply only

15 through July 1, 2007.

16 The Auditor General must conduct audits of the Rend Lake

17 Conservancy District as provided in Section 25.5 of the River

18 Conservancy Districts Act.

19 The Auditor General must conduct financial audits of the

20 Southeastern Illinois Economic Development Authority as

21 provided in Section 70 of the Southeastern Illinois Economic

22 Development Authority Act.

23 The Auditor General shall conduct a compliance audit in

24 accordance with subsections (d) and (f) of Section 30 of the

25 Innovation Development and Economy Act.

26 (Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;

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1 96-939, eff. 6-24-10.)

2 Section 90-15. The State Finance Act is amended by adding

3 Sections 5.826, 5.829, 5.830, 5.831, 5.832, 5.833, 6z-98,

4 6z-99, and 6z-100 as follows:

5 (30 ILCS 105/5.826 new)

6 Sec. 5.826. The Gaming Facilities Fee Revenue Fund.

7 (30 ILCS 105/5.829 new)

8 Sec. 5.829. The State Fairgrounds Capital Improvement

9 Fund.

10 (30 ILCS 105/5.830 new)

11 Sec. 5.830. The Depressed Communities Economic Development

12 Fund.

13 (30 ILCS 105/5.831 new)

14 Sec. 5.831. The Latino Community Economic Development

15 Fund.

16 (30 ILCS 105/5.832 new)

17 Sec. 5.832. The African American Community Economic

18 Development Fund.

19 (30 ILCS 105/5.833 new)

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1 Sec. 5.833. The Future of Agriculture Fund.

2 (30 ILCS 105/6z-98 new)

3 Sec. 6z-98. The Gaming Facilities Fee Revenue Fund.

4 (a) The Gaming Facilities Fee Revenue Fund is created as a

5 special fund in the State treasury.

6 (b) The revenues in the Fund shall be used, subject to

7 appropriation, by the Comptroller for the purpose of (i)

8 providing appropriations to the Illinois Gaming Board for the

9 administration and enforcement of the Illinois Gambling Act and

10 the applicable provisions of the Chicago Casino Development

11 Authority Act, (ii) providing appropriations to the Illinois

12 Racing Board for the administration and enforcement of the

13 Illinois Horse Racing Act of 1975, and (iii) payment of

14 vouchers that are outstanding for more than 60 days. Whenever

15 practical, the Comptroller must prioritize voucher payments

16 for expenses related to medical assistance under the Illinois

17 Public Aid Code, the Children's Health Insurance Program Act,

18 the Covering ALL KIDS Health Insurance Act, and the Senior

19 Citizens and Disabled Persons Property Tax Relief and

20 Pharmaceutical Assistance Act.

21 (c) The Fund shall consist of fee revenues received

22 pursuant to subsection (e) of Section 1-45 of the Chicago

23 Casino Development Authority Act and pursuant to subsections

24 (e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections

25 (b), (c), (d), and (k) of Section 7.6 of the Illinois Gambling

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1 Act. All interest earned on moneys in the Fund shall be

2 deposited into the Fund.

3 (d) The Fund shall not be subject to administrative charges

4 or chargebacks, including, but not limited to, those authorized

5 under subsection (h) of Section 8 of this Act.

6 (30 ILCS 105/6z-99 new)

7 Sec. 6z-99. The State Fairgrounds Capital Improvement

8 Fund. There is created the State Fairgrounds Capital

9 Improvement Fund, a special fund in the State treasury. Moneys

10 in the Fund may be used by the Department of Agriculture,

11 subject to appropriation, solely for infrastructure

12 improvements to the Illinois State Fairgrounds in Sangamon

13 County, including, but not limited to, track surfaces (main

14 track and practice track), grandstands, audio and visual

15 systems, paddocks and barns and associated surface areas,

16 restroom facilities on the backstretch, and roadway surfaces

17 around the racing facility. In addition, no more than 5% of the

18 moneys annually transferred into the Fund may be used by the

19 Department for all costs associated with fire protection and

20 fire protection services for the Illinois State Fairgrounds.

21 The State Fairgrounds Capital Improvement Fund is not subject

22 to administrative chargebacks, including, but not limited to,

23 those authorized under Section 8h of the State Finance Act.

24 (30 ILCS 105/6z-100 new)

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1 Sec. 6z-100. The Future of Agriculture Fund. There is

2 created the Future of Agriculture Fund, a special fund in the

3 State treasury. Moneys in the Fund may be used by the

4 Department of Agriculture, subject to appropriation, for

5 grants to (1) county fairs, as defined by Section 2 of the

6 Agricultural Fair Act, (2) the Illinois Association FFA, and

7 (3) University of Illinois Extension 4-H programs.

8 Additionally, the first $5,000,000 of deposits into the Fund

9 shall be used for promotional costs associated with the

10 Illinois State Fairgrounds in Sangamon County. The Future of

11 Agriculture Fund is not subject to administrative chargebacks,

12 including, but not limited to, those authorized under Section

13 8h of the State Finance Act.

14 Section 90-20. The Illinois Income Tax Act is amended by

15 changing Sections 201, 303, 304 and 710 as follows:

16 (35 ILCS 5/201) (from Ch. 120, par. 2-201)

17 Sec. 201. Tax Imposed.

18 (a) In general. A tax measured by net income is hereby

19 imposed on every individual, corporation, trust and estate for

20 each taxable year ending after July 31, 1969 on the privilege

21 of earning or receiving income in or as a resident of this

22 State. Such tax shall be in addition to all other occupation or

23 privilege taxes imposed by this State or by any municipal

24 corporation or political subdivision thereof.

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1 (b) Rates. The tax imposed by subsection (a) of this

2 Section shall be determined as follows, except as adjusted by

3 subsection (d-1):

4 (1) In the case of an individual, trust or estate, for

5 taxable years ending prior to July 1, 1989, an amount equal

6 to 2 1/2% of the taxpayer's net income for the taxable

7 year.

8 (2) In the case of an individual, trust or estate, for

9 taxable years beginning prior to July 1, 1989 and ending

10 after June 30, 1989, an amount equal to the sum of (i) 2

11 1/2% of the taxpayer's net income for the period prior to

12 July 1, 1989, as calculated under Section 202.3, and (ii)

13 3% of the taxpayer's net income for the period after June

14 30, 1989, as calculated under Section 202.3.

15 (3) In the case of an individual, trust or estate, for

16 taxable years beginning after June 30, 1989, and ending

17 prior to January 1, 2011, an amount equal to 3% of the

18 taxpayer's net income for the taxable year.

19 (4) In the case of an individual, trust, or estate, for

20 taxable years beginning prior to January 1, 2011, and

21 ending after December 31, 2010, an amount equal to the sum

22 of (i) 3% of the taxpayer's net income for the period prior

23 to January 1, 2011, as calculated under Section 202.5, and

24 (ii) 5% of the taxpayer's net income for the period after

25 December 31, 2010, as calculated under Section 202.5.

26 (5) In the case of an individual, trust, or estate, for

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1 taxable years beginning on or after January 1, 2011, and

2 ending prior to January 1, 2015, an amount equal to 5% of

3 the taxpayer's net income for the taxable year.

4 (5.1) In the case of an individual, trust, or estate,

5 for taxable years beginning prior to January 1, 2015, and

6 ending after December 31, 2014, an amount equal to the sum

7 of (i) 5% of the taxpayer's net income for the period prior

8 to January 1, 2015, as calculated under Section 202.5, and

9 (ii) 3.75% of the taxpayer's net income for the period

10 after December 31, 2014, as calculated under Section 202.5.

11 (5.2) In the case of an individual, trust, or estate,

12 for taxable years beginning on or after January 1, 2015,

13 and ending prior to January 1, 2025, an amount equal to

14 3.75% of the taxpayer's net income for the taxable year.

15 (5.3) In the case of an individual, trust, or estate,

16 for taxable years beginning prior to January 1, 2025, and

17 ending after December 31, 2024, an amount equal to the sum

18 of (i) 3.75% of the taxpayer's net income for the period

19 prior to January 1, 2025, as calculated under Section

20 202.5, and (ii) 3.25% of the taxpayer's net income for the

21 period after December 31, 2024, as calculated under Section

22 202.5.

23 (5.4) In the case of an individual, trust, or estate,

24 for taxable years beginning on or after January 1, 2025, an

25 amount equal to 3.25% of the taxpayer's net income for the

26 taxable year.

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1 (6) In the case of a corporation, for taxable years

2 ending prior to July 1, 1989, an amount equal to 4% of the

3 taxpayer's net income for the taxable year.

4 (7) In the case of a corporation, for taxable years

5 beginning prior to July 1, 1989 and ending after June 30,

6 1989, an amount equal to the sum of (i) 4% of the

7 taxpayer's net income for the period prior to July 1, 1989,

8 as calculated under Section 202.3, and (ii) 4.8% of the

9 taxpayer's net income for the period after June 30, 1989,

10 as calculated under Section 202.3.

11 (8) In the case of a corporation, for taxable years

12 beginning after June 30, 1989, and ending prior to January

13 1, 2011, an amount equal to 4.8% of the taxpayer's net

14 income for the taxable year.

15 (9) In the case of a corporation, for taxable years

16 beginning prior to January 1, 2011, and ending after

17 December 31, 2010, an amount equal to the sum of (i) 4.8%

18 of the taxpayer's net income for the period prior to

19 January 1, 2011, as calculated under Section 202.5, and

20 (ii) 7% of the taxpayer's net income for the period after

21 December 31, 2010, as calculated under Section 202.5.

22 (10) In the case of a corporation, for taxable years

23 beginning on or after January 1, 2011, and ending prior to

24 January 1, 2015, an amount equal to 7% of the taxpayer's

25 net income for the taxable year.

26 (11) In the case of a corporation, for taxable years

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1 beginning prior to January 1, 2015, and ending after

2 December 31, 2014, an amount equal to the sum of (i) 7% of

3 the taxpayer's net income for the period prior to January

4 1, 2015, as calculated under Section 202.5, and (ii) 5.25%

5 of the taxpayer's net income for the period after December

6 31, 2014, as calculated under Section 202.5.

7 (12) In the case of a corporation, for taxable years

8 beginning on or after January 1, 2015, and ending prior to

9 January 1, 2025, an amount equal to 5.25% of the taxpayer's

10 net income for the taxable year.

11 (13) In the case of a corporation, for taxable years

12 beginning prior to January 1, 2025, and ending after

13 December 31, 2024, an amount equal to the sum of (i) 5.25%

14 of the taxpayer's net income for the period prior to

15 January 1, 2025, as calculated under Section 202.5, and

16 (ii) 4.8% of the taxpayer's net income for the period after

17 December 31, 2024, as calculated under Section 202.5.

18 (14) In the case of a corporation, for taxable years

19 beginning on or after January 1, 2025, an amount equal to

20 4.8% of the taxpayer's net income for the taxable year.

21 The rates under this subsection (b) are subject to the

22 provisions of Section 201.5.

23 (b-5) Surcharge; sale or exchange of assets, properties,

24 and intangibles of electronic gaming licensees. For each of

25 taxable years 2013 through 2021, a surcharge is imposed on all

26 taxpayers on income arising from the sale or exchange of

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1 capital assets, depreciable business property, real property

2 used in the trade or business, and Section 197 intangibles (i)

3 of an organization licensee under the Illinois Horse Racing Act

4 of 1975 and (ii) of an electronic gaming licensee under the

5 Illinois Gambling Act. The amount of the surcharge is equal to

6 the amount of federal income tax liability for the taxable year

7 attributable to those sales and exchanges. The surcharge

8 imposed shall not apply if:

9 (1) the electronic gaming license, organization

10 license, or race track property is transferred as a result

11 of any of the following:

12 (A) bankruptcy, a receivership, or a debt

13 adjustment initiated by or against the initial

14 licensee or the substantial owners of the initial

15 licensee;

16 (B) cancellation, revocation, or termination of

17 any such license by the Illinois Gaming Board or the

18 Illinois Racing Board;

19 (C) a determination by the Illinois Gaming Board

20 that transfer of the license is in the best interests

21 of Illinois gaming;

22 (D) the death of an owner of the equity interest in

23 a licensee;

24 (E) the acquisition of a controlling interest in

25 the stock or substantially all of the assets of a

26 publicly traded company;

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1 (F) a transfer by a parent company to a wholly

2 owned subsidiary; or

3 (G) the transfer or sale to or by one person to

4 another person where both persons were initial owners

5 of the license when the license was issued; or

6 (2) the controlling interest in the electronic gaming

7 license, organization license, or race track property is

8 transferred in a transaction to lineal descendants in which

9 no gain or loss is recognized or as a result of a

10 transaction in accordance with Section 351 of the Internal

11 Revenue Code in which no gain or loss is recognized; or

12 (3) live horse racing was not conducted in 2011 under a

13 license issued pursuant to the Illinois Horse Racing Act of

14 1975.

15 The transfer of an electronic gaming license, organization

16 license, or race track property by a person other than the

17 initial licensee to receive the electronic gaming license is

18 not subject to a surcharge. The Department shall adopt rules

19 necessary to implement and administer this subsection.

20 (c) Personal Property Tax Replacement Income Tax.

21 Beginning on July 1, 1979 and thereafter, in addition to such

22 income tax, there is also hereby imposed the Personal Property

23 Tax Replacement Income Tax measured by net income on every

24 corporation (including Subchapter S corporations), partnership

25 and trust, for each taxable year ending after June 30, 1979.

26 Such taxes are imposed on the privilege of earning or receiving

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1 income in or as a resident of this State. The Personal Property

2 Tax Replacement Income Tax shall be in addition to the income

3 tax imposed by subsections (a) and (b) of this Section and in

4 addition to all other occupation or privilege taxes imposed by

5 this State or by any municipal corporation or political

6 subdivision thereof.

7 (d) Additional Personal Property Tax Replacement Income

8 Tax Rates. The personal property tax replacement income tax

9 imposed by this subsection and subsection (c) of this Section

10 in the case of a corporation, other than a Subchapter S

11 corporation and except as adjusted by subsection (d-1), shall

12 be an additional amount equal to 2.85% of such taxpayer's net

13 income for the taxable year, except that beginning on January

14 1, 1981, and thereafter, the rate of 2.85% specified in this

15 subsection shall be reduced to 2.5%, and in the case of a

16 partnership, trust or a Subchapter S corporation shall be an

17 additional amount equal to 1.5% of such taxpayer's net income

18 for the taxable year.

19 (d-1) Rate reduction for certain foreign insurers. In the

20 case of a foreign insurer, as defined by Section 35A-5 of the

21 Illinois Insurance Code, whose state or country of domicile

22 imposes on insurers domiciled in Illinois a retaliatory tax

23 (excluding any insurer whose premiums from reinsurance assumed

24 are 50% or more of its total insurance premiums as determined

25 under paragraph (2) of subsection (b) of Section 304, except

26 that for purposes of this determination premiums from

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1 reinsurance do not include premiums from inter-affiliate

2 reinsurance arrangements), beginning with taxable years ending

3 on or after December 31, 1999, the sum of the rates of tax

4 imposed by subsections (b) and (d) shall be reduced (but not

5 increased) to the rate at which the total amount of tax imposed

6 under this Act, net of all credits allowed under this Act,

7 shall equal (i) the total amount of tax that would be imposed

8 on the foreign insurer's net income allocable to Illinois for

9 the taxable year by such foreign insurer's state or country of

10 domicile if that net income were subject to all income taxes

11 and taxes measured by net income imposed by such foreign

12 insurer's state or country of domicile, net of all credits

13 allowed or (ii) a rate of zero if no such tax is imposed on such

14 income by the foreign insurer's state of domicile. For the

15 purposes of this subsection (d-1), an inter-affiliate includes

16 a mutual insurer under common management.

17 (1) For the purposes of subsection (d-1), in no event

18 shall the sum of the rates of tax imposed by subsections

19 (b) and (d) be reduced below the rate at which the sum of:

20 (A) the total amount of tax imposed on such foreign

21 insurer under this Act for a taxable year, net of all

22 credits allowed under this Act, plus

23 (B) the privilege tax imposed by Section 409 of the

24 Illinois Insurance Code, the fire insurance company

25 tax imposed by Section 12 of the Fire Investigation

26 Act, and the fire department taxes imposed under

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1 Section 11-10-1 of the Illinois Municipal Code,

2 equals 1.25% for taxable years ending prior to December 31,

3 2003, or 1.75% for taxable years ending on or after

4 December 31, 2003, of the net taxable premiums written for

5 the taxable year, as described by subsection (1) of Section

6 409 of the Illinois Insurance Code. This paragraph will in

7 no event increase the rates imposed under subsections (b)

8 and (d).

9 (2) Any reduction in the rates of tax imposed by this

10 subsection shall be applied first against the rates imposed

11 by subsection (b) and only after the tax imposed by

12 subsection (a) net of all credits allowed under this

13 Section other than the credit allowed under subsection (i)

14 has been reduced to zero, against the rates imposed by

15 subsection (d).

16 This subsection (d-1) is exempt from the provisions of

17 Section 250.

18 (e) Investment credit. A taxpayer shall be allowed a credit

19 against the Personal Property Tax Replacement Income Tax for

20 investment in qualified property.

21 (1) A taxpayer shall be allowed a credit equal to .5%

22 of the basis of qualified property placed in service during

23 the taxable year, provided such property is placed in

24 service on or after July 1, 1984. There shall be allowed an

25 additional credit equal to .5% of the basis of qualified

26 property placed in service during the taxable year,

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1 provided such property is placed in service on or after

2 July 1, 1986, and the taxpayer's base employment within

3 Illinois has increased by 1% or more over the preceding

4 year as determined by the taxpayer's employment records

5 filed with the Illinois Department of Employment Security.

6 Taxpayers who are new to Illinois shall be deemed to have

7 met the 1% growth in base employment for the first year in

8 which they file employment records with the Illinois

9 Department of Employment Security. The provisions added to

10 this Section by Public Act 85-1200 (and restored by Public

11 Act 87-895) shall be construed as declaratory of existing

12 law and not as a new enactment. If, in any year, the

13 increase in base employment within Illinois over the

14 preceding year is less than 1%, the additional credit shall

15 be limited to that percentage times a fraction, the

16 numerator of which is .5% and the denominator of which is

17 1%, but shall not exceed .5%. The investment credit shall

18 not be allowed to the extent that it would reduce a

19 taxpayer's liability in any tax year below zero, nor may

20 any credit for qualified property be allowed for any year

21 other than the year in which the property was placed in

22 service in Illinois. For tax years ending on or after

23 December 31, 1987, and on or before December 31, 1988, the

24 credit shall be allowed for the tax year in which the

25 property is placed in service, or, if the amount of the

26 credit exceeds the tax liability for that year, whether it

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1 exceeds the original liability or the liability as later

2 amended, such excess may be carried forward and applied to

3 the tax liability of the 5 taxable years following the

4 excess credit years if the taxpayer (i) makes investments

5 which cause the creation of a minimum of 2,000 full-time

6 equivalent jobs in Illinois, (ii) is located in an

7 enterprise zone established pursuant to the Illinois

8 Enterprise Zone Act and (iii) is certified by the

9 Department of Commerce and Community Affairs (now

10 Department of Commerce and Economic Opportunity) as

11 complying with the requirements specified in clause (i) and

12 (ii) by July 1, 1986. The Department of Commerce and

13 Community Affairs (now Department of Commerce and Economic

14 Opportunity) shall notify the Department of Revenue of all

15 such certifications immediately. For tax years ending

16 after December 31, 1988, the credit shall be allowed for

17 the tax year in which the property is placed in service,

18 or, if the amount of the credit exceeds the tax liability

19 for that year, whether it exceeds the original liability or

20 the liability as later amended, such excess may be carried

21 forward and applied to the tax liability of the 5 taxable

22 years following the excess credit years. The credit shall

23 be applied to the earliest year for which there is a

24 liability. If there is credit from more than one tax year

25 that is available to offset a liability, earlier credit

26 shall be applied first.

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1 (2) The term "qualified property" means property

2 which:

3 (A) is tangible, whether new or used, including

4 buildings and structural components of buildings and

5 signs that are real property, but not including land or

6 improvements to real property that are not a structural

7 component of a building such as landscaping, sewer

8 lines, local access roads, fencing, parking lots, and

9 other appurtenances;

10 (B) is depreciable pursuant to Section 167 of the

11 Internal Revenue Code, except that "3-year property"

12 as defined in Section 168(c)(2)(A) of that Code is not

13 eligible for the credit provided by this subsection

14 (e);

15 (C) is acquired by purchase as defined in Section

16 179(d) of the Internal Revenue Code;

17 (D) is used in Illinois by a taxpayer who is

18 primarily engaged in manufacturing, or in mining coal

19 or fluorite, or in retailing, or was placed in service

20 on or after July 1, 2006 in a River Edge Redevelopment

21 Zone established pursuant to the River Edge

22 Redevelopment Zone Act; and

23 (E) has not previously been used in Illinois in

24 such a manner and by such a person as would qualify for

25 the credit provided by this subsection (e) or

26 subsection (f).

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1 (3) For purposes of this subsection (e),

2 "manufacturing" means the material staging and production

3 of tangible personal property by procedures commonly

4 regarded as manufacturing, processing, fabrication, or

5 assembling which changes some existing material into new

6 shapes, new qualities, or new combinations. For purposes of

7 this subsection (e) the term "mining" shall have the same

8 meaning as the term "mining" in Section 613(c) of the

9 Internal Revenue Code. For purposes of this subsection (e),

10 the term "retailing" means the sale of tangible personal

11 property for use or consumption and not for resale, or

12 services rendered in conjunction with the sale of tangible

13 personal property for use or consumption and not for

14 resale. For purposes of this subsection (e), "tangible

15 personal property" has the same meaning as when that term

16 is used in the Retailers' Occupation Tax Act, and, for

17 taxable years ending after December 31, 2008, does not

18 include the generation, transmission, or distribution of

19 electricity.

20 (4) The basis of qualified property shall be the basis

21 used to compute the depreciation deduction for federal

22 income tax purposes.

23 (5) If the basis of the property for federal income tax

24 depreciation purposes is increased after it has been placed

25 in service in Illinois by the taxpayer, the amount of such

26 increase shall be deemed property placed in service on the

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1 date of such increase in basis.

2 (6) The term "placed in service" shall have the same

3 meaning as under Section 46 of the Internal Revenue Code.

4 (7) If during any taxable year, any property ceases to

5 be qualified property in the hands of the taxpayer within

6 48 months after being placed in service, or the situs of

7 any qualified property is moved outside Illinois within 48

8 months after being placed in service, the Personal Property

9 Tax Replacement Income Tax for such taxable year shall be

10 increased. Such increase shall be determined by (i)

11 recomputing the investment credit which would have been

12 allowed for the year in which credit for such property was

13 originally allowed by eliminating such property from such

14 computation and, (ii) subtracting such recomputed credit

15 from the amount of credit previously allowed. For the

16 purposes of this paragraph (7), a reduction of the basis of

17 qualified property resulting from a redetermination of the

18 purchase price shall be deemed a disposition of qualified

19 property to the extent of such reduction.

20 (8) Unless the investment credit is extended by law,

21 the basis of qualified property shall not include costs

22 incurred after December 31, 2018, except for costs incurred

23 pursuant to a binding contract entered into on or before

24 December 31, 2018.

25 (9) Each taxable year ending before December 31, 2000,

26 a partnership may elect to pass through to its partners the

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1 credits to which the partnership is entitled under this

2 subsection (e) for the taxable year. A partner may use the

3 credit allocated to him or her under this paragraph only

4 against the tax imposed in subsections (c) and (d) of this

5 Section. If the partnership makes that election, those

6 credits shall be allocated among the partners in the

7 partnership in accordance with the rules set forth in

8 Section 704(b) of the Internal Revenue Code, and the rules

9 promulgated under that Section, and the allocated amount of

10 the credits shall be allowed to the partners for that

11 taxable year. The partnership shall make this election on

12 its Personal Property Tax Replacement Income Tax return for

13 that taxable year. The election to pass through the credits

14 shall be irrevocable.

15 For taxable years ending on or after December 31, 2000,

16 a partner that qualifies its partnership for a subtraction

17 under subparagraph (I) of paragraph (2) of subsection (d)

18 of Section 203 or a shareholder that qualifies a Subchapter

19 S corporation for a subtraction under subparagraph (S) of

20 paragraph (2) of subsection (b) of Section 203 shall be

21 allowed a credit under this subsection (e) equal to its

22 share of the credit earned under this subsection (e) during

23 the taxable year by the partnership or Subchapter S

24 corporation, determined in accordance with the

25 determination of income and distributive share of income

26 under Sections 702 and 704 and Subchapter S of the Internal

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1 Revenue Code. This paragraph is exempt from the provisions

2 of Section 250.

3 (f) Investment credit; Enterprise Zone; River Edge

4 Redevelopment Zone.

5 (1) A taxpayer shall be allowed a credit against the

6 tax imposed by subsections (a) and (b) of this Section for

7 investment in qualified property which is placed in service

8 in an Enterprise Zone created pursuant to the Illinois

9 Enterprise Zone Act or, for property placed in service on

10 or after July 1, 2006, a River Edge Redevelopment Zone

11 established pursuant to the River Edge Redevelopment Zone

12 Act. For partners, shareholders of Subchapter S

13 corporations, and owners of limited liability companies,

14 if the liability company is treated as a partnership for

15 purposes of federal and State income taxation, there shall

16 be allowed a credit under this subsection (f) to be

17 determined in accordance with the determination of income

18 and distributive share of income under Sections 702 and 704

19 and Subchapter S of the Internal Revenue Code. The credit

20 shall be .5% of the basis for such property. The credit

21 shall be available only in the taxable year in which the

22 property is placed in service in the Enterprise Zone or

23 River Edge Redevelopment Zone and shall not be allowed to

24 the extent that it would reduce a taxpayer's liability for

25 the tax imposed by subsections (a) and (b) of this Section

26 to below zero. For tax years ending on or after December

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1 31, 1985, the credit shall be allowed for the tax year in

2 which the property is placed in service, or, if the amount

3 of the credit exceeds the tax liability for that year,

4 whether it exceeds the original liability or the liability

5 as later amended, such excess may be carried forward and

6 applied to the tax liability of the 5 taxable years

7 following the excess credit year. The credit shall be

8 applied to the earliest year for which there is a

9 liability. If there is credit from more than one tax year

10 that is available to offset a liability, the credit

11 accruing first in time shall be applied first.

12 (2) The term qualified property means property which:

13 (A) is tangible, whether new or used, including

14 buildings and structural components of buildings;

15 (B) is depreciable pursuant to Section 167 of the

16 Internal Revenue Code, except that "3-year property"

17 as defined in Section 168(c)(2)(A) of that Code is not

18 eligible for the credit provided by this subsection

19 (f);

20 (C) is acquired by purchase as defined in Section

21 179(d) of the Internal Revenue Code;

22 (D) is used in the Enterprise Zone or River Edge

23 Redevelopment Zone by the taxpayer; and

24 (E) has not been previously used in Illinois in

25 such a manner and by such a person as would qualify for

26 the credit provided by this subsection (f) or

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1 subsection (e).

2 (3) The basis of qualified property shall be the basis

3 used to compute the depreciation deduction for federal

4 income tax purposes.

5 (4) If the basis of the property for federal income tax

6 depreciation purposes is increased after it has been placed

7 in service in the Enterprise Zone or River Edge

8 Redevelopment Zone by the taxpayer, the amount of such

9 increase shall be deemed property placed in service on the

10 date of such increase in basis.

11 (5) The term "placed in service" shall have the same

12 meaning as under Section 46 of the Internal Revenue Code.

13 (6) If during any taxable year, any property ceases to

14 be qualified property in the hands of the taxpayer within

15 48 months after being placed in service, or the situs of

16 any qualified property is moved outside the Enterprise Zone

17 or River Edge Redevelopment Zone within 48 months after

18 being placed in service, the tax imposed under subsections

19 (a) and (b) of this Section for such taxable year shall be

20 increased. Such increase shall be determined by (i)

21 recomputing the investment credit which would have been

22 allowed for the year in which credit for such property was

23 originally allowed by eliminating such property from such

24 computation, and (ii) subtracting such recomputed credit

25 from the amount of credit previously allowed. For the

26 purposes of this paragraph (6), a reduction of the basis of

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1 qualified property resulting from a redetermination of the

2 purchase price shall be deemed a disposition of qualified

3 property to the extent of such reduction.

4 (7) There shall be allowed an additional credit equal

5 to 0.5% of the basis of qualified property placed in

6 service during the taxable year in a River Edge

7 Redevelopment Zone, provided such property is placed in

8 service on or after July 1, 2006, and the taxpayer's base

9 employment within Illinois has increased by 1% or more over

10 the preceding year as determined by the taxpayer's

11 employment records filed with the Illinois Department of

12 Employment Security. Taxpayers who are new to Illinois

13 shall be deemed to have met the 1% growth in base

14 employment for the first year in which they file employment

15 records with the Illinois Department of Employment

16 Security. If, in any year, the increase in base employment

17 within Illinois over the preceding year is less than 1%,

18 the additional credit shall be limited to that percentage

19 times a fraction, the numerator of which is 0.5% and the

20 denominator of which is 1%, but shall not exceed 0.5%.

21 (g) Jobs Tax Credit; River Edge Redevelopment Zone and

22 Foreign Trade Zone or Sub-Zone.

23 (1) A taxpayer conducting a trade or business, for

24 taxable years ending on or after December 31, 2006, in a

25 River Edge Redevelopment Zone or conducting a trade or

26 business in a federally designated Foreign Trade Zone or

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1 Sub-Zone shall be allowed a credit against the tax imposed

2 by subsections (a) and (b) of this Section in the amount of

3 $500 per eligible employee hired to work in the zone during

4 the taxable year.

5 (2) To qualify for the credit:

6 (A) the taxpayer must hire 5 or more eligible

7 employees to work in a River Edge Redevelopment Zone or

8 federally designated Foreign Trade Zone or Sub-Zone

9 during the taxable year;

10 (B) the taxpayer's total employment within the

11 River Edge Redevelopment Zone or federally designated

12 Foreign Trade Zone or Sub-Zone must increase by 5 or

13 more full-time employees beyond the total employed in

14 that zone at the end of the previous tax year for which

15 a jobs tax credit under this Section was taken, or

16 beyond the total employed by the taxpayer as of

17 December 31, 1985, whichever is later; and

18 (C) the eligible employees must be employed 180

19 consecutive days in order to be deemed hired for

20 purposes of this subsection.

21 (3) An "eligible employee" means an employee who is:

22 (A) Certified by the Department of Commerce and

23 Economic Opportunity as "eligible for services"

24 pursuant to regulations promulgated in accordance with

25 Title II of the Job Training Partnership Act, Training

26 Services for the Disadvantaged or Title III of the Job

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1 Training Partnership Act, Employment and Training

2 Assistance for Dislocated Workers Program.

3 (B) Hired after the River Edge Redevelopment Zone

4 or federally designated Foreign Trade Zone or Sub-Zone

5 was designated or the trade or business was located in

6 that zone, whichever is later.

7 (C) Employed in the River Edge Redevelopment Zone

8 or Foreign Trade Zone or Sub-Zone. An employee is

9 employed in a federally designated Foreign Trade Zone

10 or Sub-Zone if his services are rendered there or it is

11 the base of operations for the services performed.

12 (D) A full-time employee working 30 or more hours

13 per week.

14 (4) For tax years ending on or after December 31, 1985

15 and prior to December 31, 1988, the credit shall be allowed

16 for the tax year in which the eligible employees are hired.

17 For tax years ending on or after December 31, 1988, the

18 credit shall be allowed for the tax year immediately

19 following the tax year in which the eligible employees are

20 hired. If the amount of the credit exceeds the tax

21 liability for that year, whether it exceeds the original

22 liability or the liability as later amended, such excess

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

24 the 5 taxable years following the excess credit year. The

25 credit shall be applied to the earliest year for which

26 there is a liability. If there is credit from more than one

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1 tax year that is available to offset a liability, earlier

2 credit shall be applied first.

3 (5) The Department of Revenue shall promulgate such

4 rules and regulations as may be deemed necessary to carry

5 out the purposes of this subsection (g).

6 (6) The credit shall be available for eligible

7 employees hired on or after January 1, 1986.

8 (h) Investment credit; High Impact Business.

9 (1) Subject to subsections (b) and (b-5) of Section 5.5

10 of the Illinois Enterprise Zone Act, a taxpayer shall be

11 allowed a credit against the tax imposed by subsections (a)

12 and (b) of this Section for investment in qualified

13 property which is placed in service by a Department of

14 Commerce and Economic Opportunity designated High Impact

15 Business. The credit shall be .5% of the basis for such

16 property. The credit shall not be available (i) until the

17 minimum investments in qualified property set forth in

18 subdivision (a)(3)(A) of Section 5.5 of the Illinois

19 Enterprise Zone Act have been satisfied or (ii) until the

20 time authorized in subsection (b-5) of the Illinois

21 Enterprise Zone Act for entities designated as High Impact

22 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

23 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone

24 Act, and shall not be allowed to the extent that it would

25 reduce a taxpayer's liability for the tax imposed by

26 subsections (a) and (b) of this Section to below zero. The

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1 credit applicable to such investments shall be taken in the

2 taxable year in which such investments have been completed.

3 The credit for additional investments beyond the minimum

4 investment by a designated high impact business authorized

5 under subdivision (a)(3)(A) of Section 5.5 of the Illinois

6 Enterprise Zone Act shall be available only in the taxable

7 year in which the property is placed in service and shall

8 not be allowed to the extent that it would reduce a

9 taxpayer's liability for the tax imposed by subsections (a)

10 and (b) of this Section to below zero. For tax years ending

11 on or after December 31, 1987, the credit shall be allowed

12 for the tax year in which the property is placed in

13 service, or, if the amount of the credit exceeds the tax

14 liability for that year, whether it exceeds the original

15 liability or the liability as later amended, such excess

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

17 the 5 taxable years following the excess credit year. The

18 credit shall be applied to the earliest year for which

19 there is a liability. If there is credit from more than one

20 tax year that is available to offset a liability, the

21 credit accruing first in time shall be applied first.

22 Changes made in this subdivision (h)(1) by Public Act

23 88-670 restore changes made by Public Act 85-1182 and

24 reflect existing law.

25 (2) The term qualified property means property which:

26 (A) is tangible, whether new or used, including

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1 buildings and structural components of buildings;

2 (B) is depreciable pursuant to Section 167 of the

3 Internal Revenue Code, except that "3-year property"

4 as defined in Section 168(c)(2)(A) of that Code is not

5 eligible for the credit provided by this subsection

6 (h);

7 (C) is acquired by purchase as defined in Section

8 179(d) of the Internal Revenue Code; and

9 (D) is not eligible for the Enterprise Zone

10 Investment Credit provided by subsection (f) of this

11 Section.

12 (3) The basis of qualified property shall be the basis

13 used to compute the depreciation deduction for federal

14 income tax purposes.

15 (4) If the basis of the property for federal income tax

16 depreciation purposes is increased after it has been placed

17 in service in a federally designated Foreign Trade Zone or

18 Sub-Zone located in Illinois by the taxpayer, the amount of

19 such increase shall be deemed property placed in service on

20 the date of such increase in basis.

21 (5) The term "placed in service" shall have the same

22 meaning as under Section 46 of the Internal Revenue Code.

23 (6) If during any taxable year ending on or before

24 December 31, 1996, any property ceases to be qualified

25 property in the hands of the taxpayer within 48 months

26 after being placed in service, or the situs of any

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1 qualified property is moved outside Illinois within 48

2 months after being placed in service, the tax imposed under

3 subsections (a) and (b) of this Section for such taxable

4 year shall be increased. Such increase shall be determined

5 by (i) recomputing the investment credit which would have

6 been allowed for the year in which credit for such property

7 was originally allowed by eliminating such property from

8 such computation, and (ii) subtracting such recomputed

9 credit from the amount of credit previously allowed. For

10 the purposes of this paragraph (6), a reduction of the

11 basis of qualified property resulting from a

12 redetermination of the purchase price shall be deemed a

13 disposition of qualified property to the extent of such

14 reduction.

15 (7) Beginning with tax years ending after December 31,

16 1996, if a taxpayer qualifies for the credit under this

17 subsection (h) and thereby is granted a tax abatement and

18 the taxpayer relocates its entire facility in violation of

19 the explicit terms and length of the contract under Section

20 18-183 of the Property Tax Code, the tax imposed under

21 subsections (a) and (b) of this Section shall be increased

22 for the taxable year in which the taxpayer relocated its

23 facility by an amount equal to the amount of credit

24 received by the taxpayer under this subsection (h).

25 (i) Credit for Personal Property Tax Replacement Income

26 Tax. For tax years ending prior to December 31, 2003, a credit

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1 shall be allowed against the tax imposed by subsections (a) and

2 (b) of this Section for the tax imposed by subsections (c) and

3 (d) of this Section. This credit shall be computed by

4 multiplying the tax imposed by subsections (c) and (d) of this

5 Section by a fraction, the numerator of which is base income

6 allocable to Illinois and the denominator of which is Illinois

7 base income, and further multiplying the product by the tax

8 rate imposed by subsections (a) and (b) of this Section.

9 Any credit earned on or after December 31, 1986 under this

10 subsection which is unused in the year the credit is computed

11 because it exceeds the tax liability imposed by subsections (a)

12 and (b) for that year (whether it exceeds the original

13 liability or the liability as later amended) may be carried

14 forward and applied to the tax liability imposed by subsections

15 (a) and (b) of the 5 taxable years following the excess credit

16 year, provided that no credit may be carried forward to any

17 year ending on or after December 31, 2003. This credit shall be

18 applied first to the earliest year for which there is a

19 liability. If there is a credit under this subsection from more

20 than one tax year that is available to offset a liability the

21 earliest credit arising under this subsection shall be applied

22 first.

23 If, during any taxable year ending on or after December 31,

24 1986, the tax imposed by subsections (c) and (d) of this

25 Section for which a taxpayer has claimed a credit under this

26 subsection (i) is reduced, the amount of credit for such tax

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1 shall also be reduced. Such reduction shall be determined by

2 recomputing the credit to take into account the reduced tax

3 imposed by subsections (c) and (d). If any portion of the

4 reduced amount of credit has been carried to a different

5 taxable year, an amended return shall be filed for such taxable

6 year to reduce the amount of credit claimed.

7 (j) Training expense credit. Beginning with tax years

8 ending on or after December 31, 1986 and prior to December 31,

9 2003, a taxpayer shall be allowed a credit against the tax

10 imposed by subsections (a) and (b) under this Section for all

11 amounts paid or accrued, on behalf of all persons employed by

12 the taxpayer in Illinois or Illinois residents employed outside

13 of Illinois by a taxpayer, for educational or vocational

14 training in semi-technical or technical fields or semi-skilled

15 or skilled fields, which were deducted from gross income in the

16 computation of taxable income. The credit against the tax

17 imposed by subsections (a) and (b) shall be 1.6% of such

18 training expenses. For partners, shareholders of subchapter S

19 corporations, and owners of limited liability companies, if the

20 liability company is treated as a partnership for purposes of

21 federal and State income taxation, there shall be allowed a

22 credit under this subsection (j) to be determined in accordance

23 with the determination of income and distributive share of

24 income under Sections 702 and 704 and subchapter S of the

25 Internal Revenue Code.

26 Any credit allowed under this subsection which is unused in

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1 the year the credit is earned may be carried forward to each of

2 the 5 taxable years following the year for which the credit is

3 first computed until it is used. This credit shall be applied

4 first to the earliest year for which there is a liability. If

5 there is a credit under this subsection from more than one tax

6 year that is available to offset a liability the earliest

7 credit arising under this subsection shall be applied first. No

8 carryforward credit may be claimed in any tax year ending on or

9 after December 31, 2003.

10 (k) Research and development credit. For tax years ending

11 after July 1, 1990 and prior to December 31, 2003, and

12 beginning again for tax years ending on or after December 31,

13 2004, and ending prior to January 1, 2016, a taxpayer shall be

14 allowed a credit against the tax imposed by subsections (a) and

15 (b) of this Section for increasing research activities in this

16 State. The credit allowed against the tax imposed by

17 subsections (a) and (b) shall be equal to 6 1/2% of the

18 qualifying expenditures for increasing research activities in

19 this State. For partners, shareholders of subchapter S

20 corporations, and owners of limited liability companies, if the

21 liability company is treated as a partnership for purposes of

22 federal and State income taxation, there shall be allowed a

23 credit under this subsection to be determined in accordance

24 with the determination of income and distributive share of

25 income under Sections 702 and 704 and subchapter S of the

26 Internal Revenue Code.

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1 For purposes of this subsection, "qualifying expenditures"

2 means the qualifying expenditures as defined for the federal

3 credit for increasing research activities which would be

4 allowable under Section 41 of the Internal Revenue Code and

5 which are conducted in this State, "qualifying expenditures for

6 increasing research activities in this State" means the excess

7 of qualifying expenditures for the taxable year in which

8 incurred over qualifying expenditures for the base period,

9 "qualifying expenditures for the base period" means the average

10 of the qualifying expenditures for each year in the base

11 period, and "base period" means the 3 taxable years immediately

12 preceding the taxable year for which the determination is being

13 made.

14 Any credit in excess of the tax liability for the taxable

15 year may be carried forward. A taxpayer may elect to have the

16 unused credit shown on its final completed return carried over

17 as a credit against the tax liability for the following 5

18 taxable years or until it has been fully used, whichever occurs

19 first; provided that no credit earned in a tax year ending

20 prior to December 31, 2003 may be carried forward to any year

21 ending on or after December 31, 2003.

22 If an unused credit is carried forward to a given year from

23 2 or more earlier years, that credit arising in the earliest

24 year will be applied first against the tax liability for the

25 given year. If a tax liability for the given year still

26 remains, the credit from the next earliest year will then be

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1 applied, and so on, until all credits have been used or no tax

2 liability for the given year remains. Any remaining unused

3 credit or credits then will be carried forward to the next

4 following year in which a tax liability is incurred, except

5 that no credit can be carried forward to a year which is more

6 than 5 years after the year in which the expense for which the

7 credit is given was incurred.

8 No inference shall be drawn from this amendatory Act of the

9 91st General Assembly in construing this Section for taxable

10 years beginning before January 1, 1999.

11 (l) Environmental Remediation Tax Credit.

12 (i) For tax years ending after December 31, 1997 and on

13 or before December 31, 2001, a taxpayer shall be allowed a

14 credit against the tax imposed by subsections (a) and (b)

15 of this Section for certain amounts paid for unreimbursed

16 eligible remediation costs, as specified in this

17 subsection. For purposes of this Section, "unreimbursed

18 eligible remediation costs" means costs approved by the

19 Illinois Environmental Protection Agency ("Agency") under

20 Section 58.14 of the Environmental Protection Act that were

21 paid in performing environmental remediation at a site for

22 which a No Further Remediation Letter was issued by the

23 Agency and recorded under Section 58.10 of the

24 Environmental Protection Act. The credit must be claimed

25 for the taxable year in which Agency approval of the

26 eligible remediation costs is granted. The credit is not

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1 available to any taxpayer if the taxpayer or any related

2 party caused or contributed to, in any material respect, a

3 release of regulated substances on, in, or under the site

4 that was identified and addressed by the remedial action

5 pursuant to the Site Remediation Program of the

6 Environmental Protection Act. After the Pollution Control

7 Board rules are adopted pursuant to the Illinois

8 Administrative Procedure Act for the administration and

9 enforcement of Section 58.9 of the Environmental

10 Protection Act, determinations as to credit availability

11 for purposes of this Section shall be made consistent with

12 those rules. For purposes of this Section, "taxpayer"

13 includes a person whose tax attributes the taxpayer has

14 succeeded to under Section 381 of the Internal Revenue Code

15 and "related party" includes the persons disallowed a

16 deduction for losses by paragraphs (b), (c), and (f)(1) of

17 Section 267 of the Internal Revenue Code by virtue of being

18 a related taxpayer, as well as any of its partners. The

19 credit allowed against the tax imposed by subsections (a)

20 and (b) shall be equal to 25% of the unreimbursed eligible

21 remediation costs in excess of $100,000 per site, except

22 that the $100,000 threshold shall not apply to any site

23 contained in an enterprise zone as determined by the

24 Department of Commerce and Community Affairs (now

25 Department of Commerce and Economic Opportunity). The

26 total credit allowed shall not exceed $40,000 per year with

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1 a maximum total of $150,000 per site. For partners and

2 shareholders of subchapter S corporations, there shall be

3 allowed a credit under this subsection to be determined in

4 accordance with the determination of income and

5 distributive share of income under Sections 702 and 704 and

6 subchapter S of the Internal Revenue Code.

7 (ii) A credit allowed under this subsection that is

8 unused in the year the credit is earned may be carried

9 forward to each of the 5 taxable years following the year

10 for which the credit is first earned until it is used. The

11 term "unused credit" does not include any amounts of

12 unreimbursed eligible remediation costs in excess of the

13 maximum credit per site authorized under paragraph (i).

14 This credit shall be applied first to the earliest year for

15 which there is a liability. If there is a credit under this

16 subsection from more than one tax year that is available to

17 offset a liability, the earliest credit arising under this

18 subsection shall be applied first. A credit allowed under

19 this subsection may be sold to a buyer as part of a sale of

20 all or part of the remediation site for which the credit

21 was granted. The purchaser of a remediation site and the

22 tax credit shall succeed to the unused credit and remaining

23 carry-forward period of the seller. To perfect the

24 transfer, the assignor shall record the transfer in the

25 chain of title for the site and provide written notice to

26 the Director of the Illinois Department of Revenue of the

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1 assignor's intent to sell the remediation site and the

2 amount of the tax credit to be transferred as a portion of

3 the sale. In no event may a credit be transferred to any

4 taxpayer if the taxpayer or a related party would not be

5 eligible under the provisions of subsection (i).

6 (iii) For purposes of this Section, the term "site"

7 shall have the same meaning as under Section 58.2 of the

8 Environmental Protection Act.

9 (m) Education expense credit. Beginning with tax years

10 ending after December 31, 1999, a taxpayer who is the custodian

11 of one or more qualifying pupils shall be allowed a credit

12 against the tax imposed by subsections (a) and (b) of this

13 Section for qualified education expenses incurred on behalf of

14 the qualifying pupils. The credit shall be equal to 25% of

15 qualified education expenses, but in no event may the total

16 credit under this subsection claimed by a family that is the

17 custodian of qualifying pupils exceed $500. In no event shall a

18 credit under this subsection reduce the taxpayer's liability

19 under this Act to less than zero. This subsection is exempt

20 from the provisions of Section 250 of this Act.

21 For purposes of this subsection:

22 "Qualifying pupils" means individuals who (i) are

23 residents of the State of Illinois, (ii) are under the age of

24 21 at the close of the school year for which a credit is

25 sought, and (iii) during the school year for which a credit is

26 sought were full-time pupils enrolled in a kindergarten through

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1 twelfth grade education program at any school, as defined in

2 this subsection.

3 "Qualified education expense" means the amount incurred on

4 behalf of a qualifying pupil in excess of $250 for tuition,

5 book fees, and lab fees at the school in which the pupil is

6 enrolled during the regular school year.

7 "School" means any public or nonpublic elementary or

8 secondary school in Illinois that is in compliance with Title

9 VI of the Civil Rights Act of 1964 and attendance at which

10 satisfies the requirements of Section 26-1 of the School Code,

11 except that nothing shall be construed to require a child to

12 attend any particular public or nonpublic school to qualify for

13 the credit under this Section.

14 "Custodian" means, with respect to qualifying pupils, an

15 Illinois resident who is a parent, the parents, a legal

16 guardian, or the legal guardians of the qualifying pupils.

17 (n) River Edge Redevelopment Zone site remediation tax

18 credit.

19 (i) For tax years ending on or after December 31, 2006,

20 a taxpayer shall be allowed a credit against the tax

21 imposed by subsections (a) and (b) of this Section for

22 certain amounts paid for unreimbursed eligible remediation

23 costs, as specified in this subsection. For purposes of

24 this Section, "unreimbursed eligible remediation costs"

25 means costs approved by the Illinois Environmental

26 Protection Agency ("Agency") under Section 58.14a of the

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1 Environmental Protection Act that were paid in performing

2 environmental remediation at a site within a River Edge

3 Redevelopment Zone for which a No Further Remediation

4 Letter was issued by the Agency and recorded under Section

5 58.10 of the Environmental Protection Act. The credit must

6 be claimed for the taxable year in which Agency approval of

7 the eligible remediation costs is granted. The credit is

8 not available to any taxpayer if the taxpayer or any

9 related party caused or contributed to, in any material

10 respect, a release of regulated substances on, in, or under

11 the site that was identified and addressed by the remedial

12 action pursuant to the Site Remediation Program of the

13 Environmental Protection Act. Determinations as to credit

14 availability for purposes of this Section shall be made

15 consistent with rules adopted by the Pollution Control

16 Board pursuant to the Illinois Administrative Procedure

17 Act for the administration and enforcement of Section 58.9

18 of the Environmental Protection Act. For purposes of this

19 Section, "taxpayer" includes a person whose tax attributes

20 the taxpayer has succeeded to under Section 381 of the

21 Internal Revenue Code and "related party" includes the

22 persons disallowed a deduction for losses by paragraphs

23 (b), (c), and (f)(1) of Section 267 of the Internal Revenue

24 Code by virtue of being a related taxpayer, as well as any

25 of its partners. The credit allowed against the tax imposed

26 by subsections (a) and (b) shall be equal to 25% of the

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1 unreimbursed eligible remediation costs in excess of

2 $100,000 per site.

3 (ii) A credit allowed under this subsection that is

4 unused in the year the credit is earned may be carried

5 forward to each of the 5 taxable years following the year

6 for which the credit is first earned until it is used. This

7 credit shall be applied first to the earliest year for

8 which there is a liability. If there is a credit under this

9 subsection from more than one tax year that is available to

10 offset a liability, the earliest credit arising under this

11 subsection shall be applied first. A credit allowed under

12 this subsection may be sold to a buyer as part of a sale of

13 all or part of the remediation site for which the credit

14 was granted. The purchaser of a remediation site and the

15 tax credit shall succeed to the unused credit and remaining

16 carry-forward period of the seller. To perfect the

17 transfer, the assignor shall record the transfer in the

18 chain of title for the site and provide written notice to

19 the Director of the Illinois Department of Revenue of the

20 assignor's intent to sell the remediation site and the

21 amount of the tax credit to be transferred as a portion of

22 the sale. In no event may a credit be transferred to any

23 taxpayer if the taxpayer or a related party would not be

24 eligible under the provisions of subsection (i).

25 (iii) For purposes of this Section, the term "site"

26 shall have the same meaning as under Section 58.2 of the

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1 Environmental Protection Act.

2 (Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;

3 96-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.

4 1-13-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, eff.

5 8-7-12.)

6 (35 ILCS 5/303) (from Ch. 120, par. 3-303)

7 Sec. 303. (a) In general. Any item of capital gain or loss,

8 and any item of income from rents or royalties from real or

9 tangible personal property, interest, dividends, and patent or

10 copyright royalties, and prizes awarded under the Illinois

11 Lottery Law, and, for taxable years ending on or after December

12 31, 2013, wagering and gambling winnings from Illinois sources

13 as set forth in subsection (e-1) of this Section, to the extent

14 such item constitutes nonbusiness income, together with any

15 item of deduction directly allocable thereto, shall be

16 allocated by any person other than a resident as provided in

17 this Section.

18 (b) Capital gains and losses.

19 (1) Real property. Capital gains and losses from sales

20 or exchanges of real property are allocable to this State

21 if the property is located in this State.

22 (2) Tangible personal property. Capital gains and

23 losses from sales or exchanges of tangible personal

24 property are allocable to this State if, at the time of

25 such sale or exchange:

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1 (A) The property had its situs in this State; or

2 (B) The taxpayer had its commercial domicile in

3 this State and was not taxable in the state in which

4 the property had its situs.

5 (3) Intangibles. Capital gains and losses from sales or

6 exchanges of intangible personal property are allocable to

7 this State if the taxpayer had its commercial domicile in

8 this State at the time of such sale or exchange.

9 (c) Rents and royalties.

10 (1) Real property. Rents and royalties from real

11 property are allocable to this State if the property is

12 located in this State.

13 (2) Tangible personal property. Rents and royalties

14 from tangible personal property are allocable to this

15 State:

16 (A) If and to the extent that the property is

17 utilized in this State; or

18 (B) In their entirety if, at the time such rents or

19 royalties were paid or accrued, the taxpayer had its

20 commercial domicile in this State and was not organized

21 under the laws of or taxable with respect to such rents

22 or royalties in the state in which the property was

23 utilized. The extent of utilization of tangible

24 personal property in a state is determined by

25 multiplying the rents or royalties derived from such

26 property by a fraction, the numerator of which is the

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1 number of days of physical location of the property in

2 the state during the rental or royalty period in the

3 taxable year and the denominator of which is the number

4 of days of physical location of the property everywhere

5 during all rental or royalty periods in the taxable

6 year. If the physical location of the property during

7 the rental or royalty period is unknown or

8 unascertainable by the taxpayer, tangible personal

9 property is utilized in the state in which the property

10 was located at the time the rental or royalty payer

11 obtained possession.

12 (d) Patent and copyright royalties.

13 (1) Allocation. Patent and copyright royalties are

14 allocable to this State:

15 (A) If and to the extent that the patent or

16 copyright is utilized by the payer in this State; or

17 (B) If and to the extent that the patent or

18 copyright is utilized by the payer in a state in which

19 the taxpayer is not taxable with respect to such

20 royalties and, at the time such royalties were paid or

21 accrued, the taxpayer had its commercial domicile in

22 this State.

23 (2) Utilization.

24 (A) A patent is utilized in a state to the extent

25 that it is employed in production, fabrication,

26 manufacturing or other processing in the state or to

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1 the extent that a patented product is produced in the

2 state. If the basis of receipts from patent royalties

3 does not permit allocation to states or if the

4 accounting procedures do not reflect states of

5 utilization, the patent is utilized in this State if

6 the taxpayer has its commercial domicile in this State.

7 (B) A copyright is utilized in a state to the

8 extent that printing or other publication originates

9 in the state. If the basis of receipts from copyright

10 royalties does not permit allocation to states or if

11 the accounting procedures do not reflect states of

12 utilization, the copyright is utilized in this State if

13 the taxpayer has its commercial domicile in this State.

14 (e) Illinois lottery prizes. Prizes awarded under the

15 "Illinois Lottery Law", approved December 14, 1973, are

16 allocable to this State.

17 (e-1) Wagering and gambling winnings. Payments received in

18 taxable years ending on or after December 31, 2013 of winnings

19 from pari-mutuel wagering conducted at a wagering facility

20 licensed under the Illinois Horse Racing Act of 1975 and from

21 gambling games conducted on a riverboat or in a casino or

22 electronic gaming facility licensed under the Illinois

23 Gambling Act are allocable to this State.

24 (e-5) Unemployment benefits. Unemployment benefits paid by

25 the Illinois Department of Employment Security are allocable to

26 this State.

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1 (f) Taxability in other state. For purposes of allocation

2 of income pursuant to this Section, a taxpayer is taxable in

3 another state if:

4 (1) In that state he is subject to a net income tax, a

5 franchise tax measured by net income, a franchise tax for

6 the privilege of doing business, or a corporate stock tax;

7 or

8 (2) That state has jurisdiction to subject the taxpayer

9 to a net income tax regardless of whether, in fact, the

10 state does or does not.

11 (g) Cross references.

12 (1) For allocation of interest and dividends by persons

13 other than residents, see Section 301(c)(2).

14 (2) For allocation of nonbusiness income by residents,

15 see Section 301(a).

16 (Source: P.A. 97-709, eff. 7-1-12.)

17 (35 ILCS 5/304) (from Ch. 120, par. 3-304)

18 Sec. 304. Business income of persons other than residents.

19 (a) In general. The business income of a person other than

20 a resident shall be allocated to this State if such person's

21 business income is derived solely from this State. If a person

22 other than a resident derives business income from this State

23 and one or more other states, then, for tax years ending on or

24 before December 30, 1998, and except as otherwise provided by

25 this Section, such person's business income shall be

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1 apportioned to this State by multiplying the income by a

2 fraction, the numerator of which is the sum of the property

3 factor (if any), the payroll factor (if any) and 200% of the

4 sales factor (if any), and the denominator of which is 4

5 reduced by the number of factors other than the sales factor

6 which have a denominator of zero and by an additional 2 if the

7 sales factor has a denominator of zero. For tax years ending on

8 or after December 31, 1998, and except as otherwise provided by

9 this Section, persons other than residents who derive business

10 income from this State and one or more other states shall

11 compute their apportionment factor by weighting their

12 property, payroll, and sales factors as provided in subsection

13 (h) of this Section.

14 (1) Property factor.

15 (A) The property factor is a fraction, the numerator of

16 which is the average value of the person's real and

17 tangible personal property owned or rented and used in the

18 trade or business in this State during the taxable year and

19 the denominator of which is the average value of all the

20 person's real and tangible personal property owned or

21 rented and used in the trade or business during the taxable

22 year.

23 (B) Property owned by the person is valued at its

24 original cost. Property rented by the person is valued at 8

25 times the net annual rental rate. Net annual rental rate is

26 the annual rental rate paid by the person less any annual

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1 rental rate received by the person from sub-rentals.

2 (C) The average value of property shall be determined

3 by averaging the values at the beginning and ending of the

4 taxable year but the Director may require the averaging of

5 monthly values during the taxable year if reasonably

6 required to reflect properly the average value of the

7 person's property.

8 (2) Payroll factor.

9 (A) The payroll factor is a fraction, the numerator of

10 which is the total amount paid in this State during the

11 taxable year by the person for compensation, and the

12 denominator of which is the total compensation paid

13 everywhere during the taxable year.

14 (B) Compensation is paid in this State if:

15 (i) The individual's service is performed entirely

16 within this State;

17 (ii) The individual's service is performed both

18 within and without this State, but the service

19 performed without this State is incidental to the

20 individual's service performed within this State; or

21 (iii) Some of the service is performed within this

22 State and either the base of operations, or if there is

23 no base of operations, the place from which the service

24 is directed or controlled is within this State, or the

25 base of operations or the place from which the service

26 is directed or controlled is not in any state in which

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1 some part of the service is performed, but the

2 individual's residence is in this State.

3 (iv) Compensation paid to nonresident professional

4 athletes.

5 (a) General. The Illinois source income of a

6 nonresident individual who is a member of a

7 professional athletic team includes the portion of the

8 individual's total compensation for services performed

9 as a member of a professional athletic team during the

10 taxable year which the number of duty days spent within

11 this State performing services for the team in any

12 manner during the taxable year bears to the total

13 number of duty days spent both within and without this

14 State during the taxable year.

15 (b) Travel days. Travel days that do not involve

16 either a game, practice, team meeting, or other similar

17 team event are not considered duty days spent in this

18 State. However, such travel days are considered in the

19 total duty days spent both within and without this

20 State.

21 (c) Definitions. For purposes of this subpart

22 (iv):

23 (1) The term "professional athletic team"

24 includes, but is not limited to, any professional

25 baseball, basketball, football, soccer, or hockey

26 team.

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1 (2) The term "member of a professional

2 athletic team" includes those employees who are

3 active players, players on the disabled list, and

4 any other persons required to travel and who travel

5 with and perform services on behalf of a

6 professional athletic team on a regular basis.

7 This includes, but is not limited to, coaches,

8 managers, and trainers.

9 (3) Except as provided in items (C) and (D) of

10 this subpart (3), the term "duty days" means all

11 days during the taxable year from the beginning of

12 the professional athletic team's official

13 pre-season training period through the last game

14 in which the team competes or is scheduled to

15 compete. Duty days shall be counted for the year in

16 which they occur, including where a team's

17 official pre-season training period through the

18 last game in which the team competes or is

19 scheduled to compete, occurs during more than one

20 tax year.

21 (A) Duty days shall also include days on

22 which a member of a professional athletic team

23 performs service for a team on a date that does

24 not fall within the foregoing period (e.g.,

25 participation in instructional leagues, the

26 "All Star Game", or promotional "caravans").

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1 Performing a service for a professional

2 athletic team includes conducting training and

3 rehabilitation activities, when such

4 activities are conducted at team facilities.

5 (B) Also included in duty days are game

6 days, practice days, days spent at team

7 meetings, promotional caravans, preseason

8 training camps, and days served with the team

9 through all post-season games in which the team

10 competes or is scheduled to compete.

11 (C) Duty days for any person who joins a

12 team during the period from the beginning of

13 the professional athletic team's official

14 pre-season training period through the last

15 game in which the team competes, or is

16 scheduled to compete, shall begin on the day

17 that person joins the team. Conversely, duty

18 days for any person who leaves a team during

19 this period shall end on the day that person

20 leaves the team. Where a person switches teams

21 during a taxable year, a separate duty-day

22 calculation shall be made for the period the

23 person was with each team.

24 (D) Days for which a member of a

25 professional athletic team is not compensated

26 and is not performing services for the team in

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1 any manner, including days when such member of

2 a professional athletic team has been

3 suspended without pay and prohibited from

4 performing any services for the team, shall not

5 be treated as duty days.

6 (E) Days for which a member of a

7 professional athletic team is on the disabled

8 list and does not conduct rehabilitation

9 activities at facilities of the team, and is

10 not otherwise performing services for the team

11 in Illinois, shall not be considered duty days

12 spent in this State. All days on the disabled

13 list, however, are considered to be included in

14 total duty days spent both within and without

15 this State.

16 (4) The term "total compensation for services

17 performed as a member of a professional athletic

18 team" means the total compensation received during

19 the taxable year for services performed:

20 (A) from the beginning of the official

21 pre-season training period through the last

22 game in which the team competes or is scheduled

23 to compete during that taxable year; and

24 (B) during the taxable year on a date which

25 does not fall within the foregoing period

26 (e.g., participation in instructional leagues,

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1 the "All Star Game", or promotional caravans).

2 This compensation shall include, but is not

3 limited to, salaries, wages, bonuses as described

4 in this subpart, and any other type of compensation

5 paid during the taxable year to a member of a

6 professional athletic team for services performed

7 in that year. This compensation does not include

8 strike benefits, severance pay, termination pay,

9 contract or option year buy-out payments,

10 expansion or relocation payments, or any other

11 payments not related to services performed for the

12 team.

13 For purposes of this subparagraph, "bonuses"

14 included in "total compensation for services

15 performed as a member of a professional athletic

16 team" subject to the allocation described in

17 Section 302(c)(1) are: bonuses earned as a result

18 of play (i.e., performance bonuses) during the

19 season, including bonuses paid for championship,

20 playoff or "bowl" games played by a team, or for

21 selection to all-star league or other honorary

22 positions; and bonuses paid for signing a

23 contract, unless the payment of the signing bonus

24 is not conditional upon the signee playing any

25 games for the team or performing any subsequent

26 services for the team or even making the team, the

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1 signing bonus is payable separately from the

2 salary and any other compensation, and the signing

3 bonus is nonrefundable.

4 (3) Sales factor.

5 (A) The sales factor is a fraction, the numerator of

6 which is the total sales of the person in this State during

7 the taxable year, and the denominator of which is the total

8 sales of the person everywhere during the taxable year.

9 (B) Sales of tangible personal property are in this

10 State if:

11 (i) The property is delivered or shipped to a

12 purchaser, other than the United States government,

13 within this State regardless of the f. o. b. point or

14 other conditions of the sale; or

15 (ii) The property is shipped from an office, store,

16 warehouse, factory or other place of storage in this

17 State and either the purchaser is the United States

18 government or the person is not taxable in the state of

19 the purchaser; provided, however, that premises owned

20 or leased by a person who has independently contracted

21 with the seller for the printing of newspapers,

22 periodicals or books shall not be deemed to be an

23 office, store, warehouse, factory or other place of

24 storage for purposes of this Section. Sales of tangible

25 personal property are not in this State if the seller

26 and purchaser would be members of the same unitary

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1 business group but for the fact that either the seller

2 or purchaser is a person with 80% or more of total

3 business activity outside of the United States and the

4 property is purchased for resale.

5 (B-1) Patents, copyrights, trademarks, and similar

6 items of intangible personal property.

7 (i) Gross receipts from the licensing, sale, or

8 other disposition of a patent, copyright, trademark,

9 or similar item of intangible personal property, other

10 than gross receipts governed by paragraph (B-7) of this

11 item (3), are in this State to the extent the item is

12 utilized in this State during the year the gross

13 receipts are included in gross income.

14 (ii) Place of utilization.

15 (I) A patent is utilized in a state to the

16 extent that it is employed in production,

17 fabrication, manufacturing, or other processing in

18 the state or to the extent that a patented product

19 is produced in the state. If a patent is utilized

20 in more than one state, the extent to which it is

21 utilized in any one state shall be a fraction equal

22 to the gross receipts of the licensee or purchaser

23 from sales or leases of items produced,

24 fabricated, manufactured, or processed within that

25 state using the patent and of patented items

26 produced within that state, divided by the total of

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1 such gross receipts for all states in which the

2 patent is utilized.

3 (II) A copyright is utilized in a state to the

4 extent that printing or other publication

5 originates in the state. If a copyright is utilized

6 in more than one state, the extent to which it is

7 utilized in any one state shall be a fraction equal

8 to the gross receipts from sales or licenses of

9 materials printed or published in that state

10 divided by the total of such gross receipts for all

11 states in which the copyright is utilized.

12 (III) Trademarks and other items of intangible

13 personal property governed by this paragraph (B-1)

14 are utilized in the state in which the commercial

15 domicile of the licensee or purchaser is located.

16 (iii) If the state of utilization of an item of

17 property governed by this paragraph (B-1) cannot be

18 determined from the taxpayer's books and records or

19 from the books and records of any person related to the

20 taxpayer within the meaning of Section 267(b) of the

21 Internal Revenue Code, 26 U.S.C. 267, the gross

22 receipts attributable to that item shall be excluded

23 from both the numerator and the denominator of the

24 sales factor.

25 (B-2) Gross receipts from the license, sale, or other

26 disposition of patents, copyrights, trademarks, and

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1 similar items of intangible personal property, other than

2 gross receipts governed by paragraph (B-7) of this item

3 (3), may be included in the numerator or denominator of the

4 sales factor only if gross receipts from licenses, sales,

5 or other disposition of such items comprise more than 50%

6 of the taxpayer's total gross receipts included in gross

7 income during the tax year and during each of the 2

8 immediately preceding tax years; provided that, when a

9 taxpayer is a member of a unitary business group, such

10 determination shall be made on the basis of the gross

11 receipts of the entire unitary business group.

12 (B-5) For taxable years ending on or after December 31,

13 2008, except as provided in subsections (ii) through (vii),

14 receipts from the sale of telecommunications service or

15 mobile telecommunications service are in this State if the

16 customer's service address is in this State.

17 (i) For purposes of this subparagraph (B-5), the

18 following terms have the following meanings:

19 "Ancillary services" means services that are

20 associated with or incidental to the provision of

21 "telecommunications services", including but not

22 limited to "detailed telecommunications billing",

23 "directory assistance", "vertical service", and "voice

24 mail services".

25 "Air-to-Ground Radiotelephone service" means a

26 radio service, as that term is defined in 47 CFR 22.99,

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1 in which common carriers are authorized to offer and

2 provide radio telecommunications service for hire to

3 subscribers in aircraft.

4 "Call-by-call Basis" means any method of charging

5 for telecommunications services where the price is

6 measured by individual calls.

7 "Communications Channel" means a physical or

8 virtual path of communications over which signals are

9 transmitted between or among customer channel

10 termination points.

11 "Conference bridging service" means an "ancillary

12 service" that links two or more participants of an

13 audio or video conference call and may include the

14 provision of a telephone number. "Conference bridging

15 service" does not include the "telecommunications

16 services" used to reach the conference bridge.

17 "Customer Channel Termination Point" means the

18 location where the customer either inputs or receives

19 the communications.

20 "Detailed telecommunications billing service"

21 means an "ancillary service" of separately stating

22 information pertaining to individual calls on a

23 customer's billing statement.

24 "Directory assistance" means an "ancillary

25 service" of providing telephone number information,

26 and/or address information.

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1 "Home service provider" means the facilities based

2 carrier or reseller with which the customer contracts

3 for the provision of mobile telecommunications

4 services.

5 "Mobile telecommunications service" means

6 commercial mobile radio service, as defined in Section

7 20.3 of Title 47 of the Code of Federal Regulations as

8 in effect on June 1, 1999.

9 "Place of primary use" means the street address

10 representative of where the customer's use of the

11 telecommunications service primarily occurs, which

12 must be the residential street address or the primary

13 business street address of the customer. In the case of

14 mobile telecommunications services, "place of primary

15 use" must be within the licensed service area of the

16 home service provider.

17 "Post-paid telecommunication service" means the

18 telecommunications service obtained by making a

19 payment on a call-by-call basis either through the use

20 of a credit card or payment mechanism such as a bank

21 card, travel card, credit card, or debit card, or by

22 charge made to a telephone number which is not

23 associated with the origination or termination of the

24 telecommunications service. A post-paid calling

25 service includes telecommunications service, except a

26 prepaid wireless calling service, that would be a

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1 prepaid calling service except it is not exclusively a

2 telecommunication service.

3 "Prepaid telecommunication service" means the

4 right to access exclusively telecommunications

5 services, which must be paid for in advance and which

6 enables the origination of calls using an access number

7 or authorization code, whether manually or

8 electronically dialed, and that is sold in

9 predetermined units or dollars of which the number

10 declines with use in a known amount.

11 "Prepaid Mobile telecommunication service" means a

12 telecommunications service that provides the right to

13 utilize mobile wireless service as well as other

14 non-telecommunication services, including but not

15 limited to ancillary services, which must be paid for

16 in advance that is sold in predetermined units or

17 dollars of which the number declines with use in a

18 known amount.

19 "Private communication service" means a

20 telecommunication service that entitles the customer

21 to exclusive or priority use of a communications

22 channel or group of channels between or among

23 termination points, regardless of the manner in which

24 such channel or channels are connected, and includes

25 switching capacity, extension lines, stations, and any

26 other associated services that are provided in

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1 connection with the use of such channel or channels.

2 "Service address" means:

3 (a) The location of the telecommunications

4 equipment to which a customer's call is charged and

5 from which the call originates or terminates,

6 regardless of where the call is billed or paid;

7 (b) If the location in line (a) is not known,

8 service address means the origination point of the

9 signal of the telecommunications services first

10 identified by either the seller's

11 telecommunications system or in information

12 received by the seller from its service provider

13 where the system used to transport such signals is

14 not that of the seller; and

15 (c) If the locations in line (a) and line (b)

16 are not known, the service address means the

17 location of the customer's place of primary use.

18 "Telecommunications service" means the electronic

19 transmission, conveyance, or routing of voice, data,

20 audio, video, or any other information or signals to a

21 point, or between or among points. The term

22 "telecommunications service" includes such

23 transmission, conveyance, or routing in which computer

24 processing applications are used to act on the form,

25 code or protocol of the content for purposes of

26 transmission, conveyance or routing without regard to

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1 whether such service is referred to as voice over

2 Internet protocol services or is classified by the

3 Federal Communications Commission as enhanced or value

4 added. "Telecommunications service" does not include:

5 (a) Data processing and information services

6 that allow data to be generated, acquired, stored,

7 processed, or retrieved and delivered by an

8 electronic transmission to a purchaser when such

9 purchaser's primary purpose for the underlying

10 transaction is the processed data or information;

11 (b) Installation or maintenance of wiring or

12 equipment on a customer's premises;

13 (c) Tangible personal property;

14 (d) Advertising, including but not limited to

15 directory advertising.

16 (e) Billing and collection services provided

17 to third parties;

18 (f) Internet access service;

19 (g) Radio and television audio and video

20 programming services, regardless of the medium,

21 including the furnishing of transmission,

22 conveyance and routing of such services by the

23 programming service provider. Radio and television

24 audio and video programming services shall include

25 but not be limited to cable service as defined in

26 47 USC 522(6) and audio and video programming

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1 services delivered by commercial mobile radio

2 service providers, as defined in 47 CFR 20.3;

3 (h) "Ancillary services"; or

4 (i) Digital products "delivered

5 electronically", including but not limited to

6 software, music, video, reading materials or ring

7 tones.

8 "Vertical service" means an "ancillary service"

9 that is offered in connection with one or more

10 "telecommunications services", which offers advanced

11 calling features that allow customers to identify

12 callers and to manage multiple calls and call

13 connections, including "conference bridging services".

14 "Voice mail service" means an "ancillary service"

15 that enables the customer to store, send or receive

16 recorded messages. "Voice mail service" does not

17 include any "vertical services" that the customer may

18 be required to have in order to utilize the "voice mail

19 service".

20 (ii) Receipts from the sale of telecommunications

21 service sold on an individual call-by-call basis are in

22 this State if either of the following applies:

23 (a) The call both originates and terminates in

24 this State.

25 (b) The call either originates or terminates

26 in this State and the service address is located in

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1 this State.

2 (iii) Receipts from the sale of postpaid

3 telecommunications service at retail are in this State

4 if the origination point of the telecommunication

5 signal, as first identified by the service provider's

6 telecommunication system or as identified by

7 information received by the seller from its service

8 provider if the system used to transport

9 telecommunication signals is not the seller's, is

10 located in this State.

11 (iv) Receipts from the sale of prepaid

12 telecommunications service or prepaid mobile

13 telecommunications service at retail are in this State

14 if the purchaser obtains the prepaid card or similar

15 means of conveyance at a location in this State.

16 Receipts from recharging a prepaid telecommunications

17 service or mobile telecommunications service is in

18 this State if the purchaser's billing information

19 indicates a location in this State.

20 (v) Receipts from the sale of private

21 communication services are in this State as follows:

22 (a) 100% of receipts from charges imposed at

23 each channel termination point in this State.

24 (b) 100% of receipts from charges for the total

25 channel mileage between each channel termination

26 point in this State.

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1 (c) 50% of the total receipts from charges for

2 service segments when those segments are between 2

3 customer channel termination points, 1 of which is

4 located in this State and the other is located

5 outside of this State, which segments are

6 separately charged.

7 (d) The receipts from charges for service

8 segments with a channel termination point located

9 in this State and in two or more other states, and

10 which segments are not separately billed, are in

11 this State based on a percentage determined by

12 dividing the number of customer channel

13 termination points in this State by the total

14 number of customer channel termination points.

15 (vi) Receipts from charges for ancillary services

16 for telecommunications service sold to customers at

17 retail are in this State if the customer's primary

18 place of use of telecommunications services associated

19 with those ancillary services is in this State. If the

20 seller of those ancillary services cannot determine

21 where the associated telecommunications are located,

22 then the ancillary services shall be based on the

23 location of the purchaser.

24 (vii) Receipts to access a carrier's network or

25 from the sale of telecommunication services or

26 ancillary services for resale are in this State as

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1 follows:

2 (a) 100% of the receipts from access fees

3 attributable to intrastate telecommunications

4 service that both originates and terminates in

5 this State.

6 (b) 50% of the receipts from access fees

7 attributable to interstate telecommunications

8 service if the interstate call either originates

9 or terminates in this State.

10 (c) 100% of the receipts from interstate end

11 user access line charges, if the customer's

12 service address is in this State. As used in this

13 subdivision, "interstate end user access line

14 charges" includes, but is not limited to, the

15 surcharge approved by the federal communications

16 commission and levied pursuant to 47 CFR 69.

17 (d) Gross receipts from sales of

18 telecommunication services or from ancillary

19 services for telecommunications services sold to

20 other telecommunication service providers for

21 resale shall be sourced to this State using the

22 apportionment concepts used for non-resale

23 receipts of telecommunications services if the

24 information is readily available to make that

25 determination. If the information is not readily

26 available, then the taxpayer may use any other

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1 reasonable and consistent method.

2 (B-7) For taxable years ending on or after December 31,

3 2008, receipts from the sale of broadcasting services are

4 in this State if the broadcasting services are received in

5 this State. For purposes of this paragraph (B-7), the

6 following terms have the following meanings:

7 "Advertising revenue" means consideration received

8 by the taxpayer in exchange for broadcasting services

9 or allowing the broadcasting of commercials or

10 announcements in connection with the broadcasting of

11 film or radio programming, from sponsorships of the

12 programming, or from product placements in the

13 programming.

14 "Audience factor" means the ratio that the

15 audience or subscribers located in this State of a

16 station, a network, or a cable system bears to the

17 total audience or total subscribers for that station,

18 network, or cable system. The audience factor for film

19 or radio programming shall be determined by reference

20 to the books and records of the taxpayer or by

21 reference to published rating statistics provided the

22 method used by the taxpayer is consistently used from

23 year to year for this purpose and fairly represents the

24 taxpayer's activity in this State.

25 "Broadcast" or "broadcasting" or "broadcasting

26 services" means the transmission or provision of film

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1 or radio programming, whether through the public

2 airwaves, by cable, by direct or indirect satellite

3 transmission, or by any other means of communication,

4 either through a station, a network, or a cable system.

5 "Film" or "film programming" means the broadcast

6 on television of any and all performances, events, or

7 productions, including but not limited to news,

8 sporting events, plays, stories, or other literary,

9 commercial, educational, or artistic works, either

10 live or through the use of video tape, disc, or any

11 other type of format or medium. Each episode of a

12 series of films produced for television shall

13 constitute separate "film" notwithstanding that the

14 series relates to the same principal subject and is

15 produced during one or more tax periods.

16 "Radio" or "radio programming" means the broadcast

17 on radio of any and all performances, events, or

18 productions, including but not limited to news,

19 sporting events, plays, stories, or other literary,

20 commercial, educational, or artistic works, either

21 live or through the use of an audio tape, disc, or any

22 other format or medium. Each episode in a series of

23 radio programming produced for radio broadcast shall

24 constitute a separate "radio programming"

25 notwithstanding that the series relates to the same

26 principal subject and is produced during one or more

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1 tax periods.

2 (i) In the case of advertising revenue from

3 broadcasting, the customer is the advertiser and

4 the service is received in this State if the

5 commercial domicile of the advertiser is in this

6 State.

7 (ii) In the case where film or radio

8 programming is broadcast by a station, a network,

9 or a cable system for a fee or other remuneration

10 received from the recipient of the broadcast, the

11 portion of the service that is received in this

12 State is measured by the portion of the recipients

13 of the broadcast located in this State.

14 Accordingly, the fee or other remuneration for

15 such service that is included in the Illinois

16 numerator of the sales factor is the total of those

17 fees or other remuneration received from

18 recipients in Illinois. For purposes of this

19 paragraph, a taxpayer may determine the location

20 of the recipients of its broadcast using the

21 address of the recipient shown in its contracts

22 with the recipient or using the billing address of

23 the recipient in the taxpayer's records.

24 (iii) In the case where film or radio

25 programming is broadcast by a station, a network,

26 or a cable system for a fee or other remuneration

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1 from the person providing the programming, the

2 portion of the broadcast service that is received

3 by such station, network, or cable system in this

4 State is measured by the portion of recipients of

5 the broadcast located in this State. Accordingly,

6 the amount of revenue related to such an

7 arrangement that is included in the Illinois

8 numerator of the sales factor is the total fee or

9 other total remuneration from the person providing

10 the programming related to that broadcast

11 multiplied by the Illinois audience factor for

12 that broadcast.

13 (iv) In the case where film or radio

14 programming is provided by a taxpayer that is a

15 network or station to a customer for broadcast in

16 exchange for a fee or other remuneration from that

17 customer the broadcasting service is received at

18 the location of the office of the customer from

19 which the services were ordered in the regular

20 course of the customer's trade or business.

21 Accordingly, in such a case the revenue derived by

22 the taxpayer that is included in the taxpayer's

23 Illinois numerator of the sales factor is the

24 revenue from such customers who receive the

25 broadcasting service in Illinois.

26 (v) In the case where film or radio programming

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1 is provided by a taxpayer that is not a network or

2 station to another person for broadcasting in

3 exchange for a fee or other remuneration from that

4 person, the broadcasting service is received at

5 the location of the office of the customer from

6 which the services were ordered in the regular

7 course of the customer's trade or business.

8 Accordingly, in such a case the revenue derived by

9 the taxpayer that is included in the taxpayer's

10 Illinois numerator of the sales factor is the

11 revenue from such customers who receive the

12 broadcasting service in Illinois.

13 (B-8) For taxable years ending on or after December 31,

14 2013, gross receipts from winnings from pari-mutuel

15 wagering conducted at a wagering facility licensed under

16 the Illinois Horse Racing Act of 1975 or from winnings from

17 gambling games conducted on a riverboat or in a casino or

18 electronic gaming facility licensed under the Illinois

19 Gambling Act are in this State.

20 (C) For taxable years ending before December 31, 2008,

21 sales, other than sales governed by paragraphs (B), (B-1),

22 and (B-2), are in this State if:

23 (i) The income-producing activity is performed in

24 this State; or

25 (ii) The income-producing activity is performed

26 both within and without this State and a greater

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1 proportion of the income-producing activity is

2 performed within this State than without this State,

3 based on performance costs.

4 (C-5) For taxable years ending on or after December 31,

5 2008, sales, other than sales governed by paragraphs (B),

6 (B-1), (B-2), (B-5), and (B-7), are in this State if any of

7 the following criteria are met:

8 (i) Sales from the sale or lease of real property

9 are in this State if the property is located in this

10 State.

11 (ii) Sales from the lease or rental of tangible

12 personal property are in this State if the property is

13 located in this State during the rental period. Sales

14 from the lease or rental of tangible personal property

15 that is characteristically moving property, including,

16 but not limited to, motor vehicles, rolling stock,

17 aircraft, vessels, or mobile equipment are in this

18 State to the extent that the property is used in this

19 State.

20 (iii) In the case of interest, net gains (but not

21 less than zero) and other items of income from

22 intangible personal property, the sale is in this State

23 if:

24 (a) in the case of a taxpayer who is a dealer

25 in the item of intangible personal property within

26 the meaning of Section 475 of the Internal Revenue

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1 Code, the income or gain is received from a

2 customer in this State. For purposes of this

3 subparagraph, a customer is in this State if the

4 customer is an individual, trust or estate who is a

5 resident of this State and, for all other

6 customers, if the customer's commercial domicile

7 is in this State. Unless the dealer has actual

8 knowledge of the residence or commercial domicile

9 of a customer during a taxable year, the customer

10 shall be deemed to be a customer in this State if

11 the billing address of the customer, as shown in

12 the records of the dealer, is in this State; or

13 (b) in all other cases, if the

14 income-producing activity of the taxpayer is

15 performed in this State or, if the

16 income-producing activity of the taxpayer is

17 performed both within and without this State, if a

18 greater proportion of the income-producing

19 activity of the taxpayer is performed within this

20 State than in any other state, based on performance

21 costs.

22 (iv) Sales of services are in this State if the

23 services are received in this State. For the purposes

24 of this section, gross receipts from the performance of

25 services provided to a corporation, partnership, or

26 trust may only be attributed to a state where that

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1 corporation, partnership, or trust has a fixed place of

2 business. If the state where the services are received

3 is not readily determinable or is a state where the

4 corporation, partnership, or trust receiving the

5 service does not have a fixed place of business, the

6 services shall be deemed to be received at the location

7 of the office of the customer from which the services

8 were ordered in the regular course of the customer's

9 trade or business. If the ordering office cannot be

10 determined, the services shall be deemed to be received

11 at the office of the customer to which the services are

12 billed. If the taxpayer is not taxable in the state in

13 which the services are received, the sale must be

14 excluded from both the numerator and the denominator of

15 the sales factor. The Department shall adopt rules

16 prescribing where specific types of service are

17 received, including, but not limited to, publishing,

18 and utility service.

19 (D) For taxable years ending on or after December 31,

20 1995, the following items of income shall not be included

21 in the numerator or denominator of the sales factor:

22 dividends; amounts included under Section 78 of the

23 Internal Revenue Code; and Subpart F income as defined in

24 Section 952 of the Internal Revenue Code. No inference

25 shall be drawn from the enactment of this paragraph (D) in

26 construing this Section for taxable years ending before

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1 December 31, 1995.

2 (E) Paragraphs (B-1) and (B-2) shall apply to tax years

3 ending on or after December 31, 1999, provided that a

4 taxpayer may elect to apply the provisions of these

5 paragraphs to prior tax years. Such election shall be made

6 in the form and manner prescribed by the Department, shall

7 be irrevocable, and shall apply to all tax years; provided

8 that, if a taxpayer's Illinois income tax liability for any

9 tax year, as assessed under Section 903 prior to January 1,

10 1999, was computed in a manner contrary to the provisions

11 of paragraphs (B-1) or (B-2), no refund shall be payable to

12 the taxpayer for that tax year to the extent such refund is

13 the result of applying the provisions of paragraph (B-1) or

14 (B-2) retroactively. In the case of a unitary business

15 group, such election shall apply to all members of such

16 group for every tax year such group is in existence, but

17 shall not apply to any taxpayer for any period during which

18 that taxpayer is not a member of such group.

19 (b) Insurance companies.

20 (1) In general. Except as otherwise provided by

21 paragraph (2), business income of an insurance company for

22 a taxable year shall be apportioned to this State by

23 multiplying such income by a fraction, the numerator of

24 which is the direct premiums written for insurance upon

25 property or risk in this State, and the denominator of

26 which is the direct premiums written for insurance upon

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1 property or risk everywhere. For purposes of this

2 subsection, the term "direct premiums written" means the

3 total amount of direct premiums written, assessments and

4 annuity considerations as reported for the taxable year on

5 the annual statement filed by the company with the Illinois

6 Director of Insurance in the form approved by the National

7 Convention of Insurance Commissioners or such other form as

8 may be prescribed in lieu thereof.

9 (2) Reinsurance. If the principal source of premiums

10 written by an insurance company consists of premiums for

11 reinsurance accepted by it, the business income of such

12 company shall be apportioned to this State by multiplying

13 such income by a fraction, the numerator of which is the

14 sum of (i) direct premiums written for insurance upon

15 property or risk in this State, plus (ii) premiums written

16 for reinsurance accepted in respect of property or risk in

17 this State, and the denominator of which is the sum of

18 (iii) direct premiums written for insurance upon property

19 or risk everywhere, plus (iv) premiums written for

20 reinsurance accepted in respect of property or risk

21 everywhere. For purposes of this paragraph, premiums

22 written for reinsurance accepted in respect of property or

23 risk in this State, whether or not otherwise determinable,

24 may, at the election of the company, be determined on the

25 basis of the proportion which premiums written for

26 reinsurance accepted from companies commercially domiciled

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1 in Illinois bears to premiums written for reinsurance

2 accepted from all sources, or, alternatively, in the

3 proportion which the sum of the direct premiums written for

4 insurance upon property or risk in this State by each

5 ceding company from which reinsurance is accepted bears to

6 the sum of the total direct premiums written by each such

7 ceding company for the taxable year. The election made by a

8 company under this paragraph for its first taxable year

9 ending on or after December 31, 2011, shall be binding for

10 that company for that taxable year and for all subsequent

11 taxable years, and may be altered only with the written

12 permission of the Department, which shall not be

13 unreasonably withheld.

14 (c) Financial organizations.

15 (1) In general. For taxable years ending before

16 December 31, 2008, business income of a financial

17 organization shall be apportioned to this State by

18 multiplying such income by a fraction, the numerator of

19 which is its business income from sources within this

20 State, and the denominator of which is its business income

21 from all sources. For the purposes of this subsection, the

22 business income of a financial organization from sources

23 within this State is the sum of the amounts referred to in

24 subparagraphs (A) through (E) following, but excluding the

25 adjusted income of an international banking facility as

26 determined in paragraph (2):

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1 (A) Fees, commissions or other compensation for

2 financial services rendered within this State;

3 (B) Gross profits from trading in stocks, bonds or

4 other securities managed within this State;

5 (C) Dividends, and interest from Illinois

6 customers, which are received within this State;

7 (D) Interest charged to customers at places of

8 business maintained within this State for carrying

9 debit balances of margin accounts, without deduction

10 of any costs incurred in carrying such accounts; and

11 (E) Any other gross income resulting from the

12 operation as a financial organization within this

13 State. In computing the amounts referred to in

14 paragraphs (A) through (E) of this subsection, any

15 amount received by a member of an affiliated group

16 (determined under Section 1504(a) of the Internal

17 Revenue Code but without reference to whether any such

18 corporation is an "includible corporation" under

19 Section 1504(b) of the Internal Revenue Code) from

20 another member of such group shall be included only to

21 the extent such amount exceeds expenses of the

22 recipient directly related thereto.

23 (2) International Banking Facility. For taxable years

24 ending before December 31, 2008:

25 (A) Adjusted Income. The adjusted income of an

26 international banking facility is its income reduced

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1 by the amount of the floor amount.

2 (B) Floor Amount. The floor amount shall be the

3 amount, if any, determined by multiplying the income of

4 the international banking facility by a fraction, not

5 greater than one, which is determined as follows:

6 (i) The numerator shall be:

7 The average aggregate, determined on a

8 quarterly basis, of the financial organization's

9 loans to banks in foreign countries, to foreign

10 domiciled borrowers (except where secured

11 primarily by real estate) and to foreign

12 governments and other foreign official

13 institutions, as reported for its branches,

14 agencies and offices within the state on its

15 "Consolidated Report of Condition", Schedule A,

16 Lines 2.c., 5.b., and 7.a., which was filed with

17 the Federal Deposit Insurance Corporation and

18 other regulatory authorities, for the year 1980,

19 minus

20 The average aggregate, determined on a

21 quarterly basis, of such loans (other than loans of

22 an international banking facility), as reported by

23 the financial institution for its branches,

24 agencies and offices within the state, on the

25 corresponding Schedule and lines of the

26 Consolidated Report of Condition for the current

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1 taxable year, provided, however, that in no case

2 shall the amount determined in this clause (the

3 subtrahend) exceed the amount determined in the

4 preceding clause (the minuend); and

5 (ii) the denominator shall be the average

6 aggregate, determined on a quarterly basis, of the

7 international banking facility's loans to banks in

8 foreign countries, to foreign domiciled borrowers

9 (except where secured primarily by real estate)

10 and to foreign governments and other foreign

11 official institutions, which were recorded in its

12 financial accounts for the current taxable year.

13 (C) Change to Consolidated Report of Condition and

14 in Qualification. In the event the Consolidated Report

15 of Condition which is filed with the Federal Deposit

16 Insurance Corporation and other regulatory authorities

17 is altered so that the information required for

18 determining the floor amount is not found on Schedule

19 A, lines 2.c., 5.b. and 7.a., the financial institution

20 shall notify the Department and the Department may, by

21 regulations or otherwise, prescribe or authorize the

22 use of an alternative source for such information. The

23 financial institution shall also notify the Department

24 should its international banking facility fail to

25 qualify as such, in whole or in part, or should there

26 be any amendment or change to the Consolidated Report

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1 of Condition, as originally filed, to the extent such

2 amendment or change alters the information used in

3 determining the floor amount.

4 (3) For taxable years ending on or after December 31,

5 2008, the business income of a financial organization shall

6 be apportioned to this State by multiplying such income by

7 a fraction, the numerator of which is its gross receipts

8 from sources in this State or otherwise attributable to

9 this State's marketplace and the denominator of which is

10 its gross receipts everywhere during the taxable year.

11 "Gross receipts" for purposes of this subparagraph (3)

12 means gross income, including net taxable gain on

13 disposition of assets, including securities and money

14 market instruments, when derived from transactions and

15 activities in the regular course of the financial

16 organization's trade or business. The following examples

17 are illustrative:

18 (i) Receipts from the lease or rental of real or

19 tangible personal property are in this State if the

20 property is located in this State during the rental

21 period. Receipts from the lease or rental of tangible

22 personal property that is characteristically moving

23 property, including, but not limited to, motor

24 vehicles, rolling stock, aircraft, vessels, or mobile

25 equipment are from sources in this State to the extent

26 that the property is used in this State.

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1 (ii) Interest income, commissions, fees, gains on

2 disposition, and other receipts from assets in the

3 nature of loans that are secured primarily by real

4 estate or tangible personal property are from sources

5 in this State if the security is located in this State.

6 (iii) Interest income, commissions, fees, gains on

7 disposition, and other receipts from consumer loans

8 that are not secured by real or tangible personal

9 property are from sources in this State if the debtor

10 is a resident of this State.

11 (iv) Interest income, commissions, fees, gains on

12 disposition, and other receipts from commercial loans

13 and installment obligations that are not secured by

14 real or tangible personal property are from sources in

15 this State if the proceeds of the loan are to be

16 applied in this State. If it cannot be determined where

17 the funds are to be applied, the income and receipts

18 are from sources in this State if the office of the

19 borrower from which the loan was negotiated in the

20 regular course of business is located in this State. If

21 the location of this office cannot be determined, the

22 income and receipts shall be excluded from the

23 numerator and denominator of the sales factor.

24 (v) Interest income, fees, gains on disposition,

25 service charges, merchant discount income, and other

26 receipts from credit card receivables are from sources

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1 in this State if the card charges are regularly billed

2 to a customer in this State.

3 (vi) Receipts from the performance of services,

4 including, but not limited to, fiduciary, advisory,

5 and brokerage services, are in this State if the

6 services are received in this State within the meaning

7 of subparagraph (a)(3)(C-5)(iv) of this Section.

8 (vii) Receipts from the issuance of travelers

9 checks and money orders are from sources in this State

10 if the checks and money orders are issued from a

11 location within this State.

12 (viii) Receipts from investment assets and

13 activities and trading assets and activities are

14 included in the receipts factor as follows:

15 (1) Interest, dividends, net gains (but not

16 less than zero) and other income from investment

17 assets and activities from trading assets and

18 activities shall be included in the receipts

19 factor. Investment assets and activities and

20 trading assets and activities include but are not

21 limited to: investment securities; trading account

22 assets; federal funds; securities purchased and

23 sold under agreements to resell or repurchase;

24 options; futures contracts; forward contracts;

25 notional principal contracts such as swaps;

26 equities; and foreign currency transactions. With

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1 respect to the investment and trading assets and

2 activities described in subparagraphs (A) and (B)

3 of this paragraph, the receipts factor shall

4 include the amounts described in such

5 subparagraphs.

6 (A) The receipts factor shall include the

7 amount by which interest from federal funds

8 sold and securities purchased under resale

9 agreements exceeds interest expense on federal

10 funds purchased and securities sold under

11 repurchase agreements.

12 (B) The receipts factor shall include the

13 amount by which interest, dividends, gains and

14 other income from trading assets and

15 activities, including but not limited to

16 assets and activities in the matched book, in

17 the arbitrage book, and foreign currency

18 transactions, exceed amounts paid in lieu of

19 interest, amounts paid in lieu of dividends,

20 and losses from such assets and activities.

21 (2) The numerator of the receipts factor

22 includes interest, dividends, net gains (but not

23 less than zero), and other income from investment

24 assets and activities and from trading assets and

25 activities described in paragraph (1) of this

26 subsection that are attributable to this State.

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1 (A) The amount of interest, dividends, net

2 gains (but not less than zero), and other

3 income from investment assets and activities

4 in the investment account to be attributed to

5 this State and included in the numerator is

6 determined by multiplying all such income from

7 such assets and activities by a fraction, the

8 numerator of which is the gross income from

9 such assets and activities which are properly

10 assigned to a fixed place of business of the

11 taxpayer within this State and the denominator

12 of which is the gross income from all such

13 assets and activities.

14 (B) The amount of interest from federal

15 funds sold and purchased and from securities

16 purchased under resale agreements and

17 securities sold under repurchase agreements

18 attributable to this State and included in the

19 numerator is determined by multiplying the

20 amount described in subparagraph (A) of

21 paragraph (1) of this subsection from such

22 funds and such securities by a fraction, the

23 numerator of which is the gross income from

24 such funds and such securities which are

25 properly assigned to a fixed place of business

26 of the taxpayer within this State and the

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1 denominator of which is the gross income from

2 all such funds and such securities.

3 (C) The amount of interest, dividends,

4 gains, and other income from trading assets and

5 activities, including but not limited to

6 assets and activities in the matched book, in

7 the arbitrage book and foreign currency

8 transactions (but excluding amounts described

9 in subparagraphs (A) or (B) of this paragraph),

10 attributable to this State and included in the

11 numerator is determined by multiplying the

12 amount described in subparagraph (B) of

13 paragraph (1) of this subsection by a fraction,

14 the numerator of which is the gross income from

15 such trading assets and activities which are

16 properly assigned to a fixed place of business

17 of the taxpayer within this State and the

18 denominator of which is the gross income from

19 all such assets and activities.

20 (D) Properly assigned, for purposes of

21 this paragraph (2) of this subsection, means

22 the investment or trading asset or activity is

23 assigned to the fixed place of business with

24 which it has a preponderance of substantive

25 contacts. An investment or trading asset or

26 activity assigned by the taxpayer to a fixed

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1 place of business without the State shall be

2 presumed to have been properly assigned if:

3 (i) the taxpayer has assigned, in the

4 regular course of its business, such asset

5 or activity on its records to a fixed place

6 of business consistent with federal or

7 state regulatory requirements;

8 (ii) such assignment on its records is

9 based upon substantive contacts of the

10 asset or activity to such fixed place of

11 business; and

12 (iii) the taxpayer uses such records

13 reflecting assignment of such assets or

14 activities for the filing of all state and

15 local tax returns for which an assignment

16 of such assets or activities to a fixed

17 place of business is required.

18 (E) The presumption of proper assignment

19 of an investment or trading asset or activity

20 provided in subparagraph (D) of paragraph (2)

21 of this subsection may be rebutted upon a

22 showing by the Department, supported by a

23 preponderance of the evidence, that the

24 preponderance of substantive contacts

25 regarding such asset or activity did not occur

26 at the fixed place of business to which it was

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1 assigned on the taxpayer's records. If the

2 fixed place of business that has a

3 preponderance of substantive contacts cannot

4 be determined for an investment or trading

5 asset or activity to which the presumption in

6 subparagraph (D) of paragraph (2) of this

7 subsection does not apply or with respect to

8 which that presumption has been rebutted, that

9 asset or activity is properly assigned to the

10 state in which the taxpayer's commercial

11 domicile is located. For purposes of this

12 subparagraph (E), it shall be presumed,

13 subject to rebuttal, that taxpayer's

14 commercial domicile is in the state of the

15 United States or the District of Columbia to

16 which the greatest number of employees are

17 regularly connected with the management of the

18 investment or trading income or out of which

19 they are working, irrespective of where the

20 services of such employees are performed, as of

21 the last day of the taxable year.

22 (4) (Blank).

23 (5) (Blank).

24 (c-1) Federally regulated exchanges. For taxable years

25 ending on or after December 31, 2012, business income of a

26 federally regulated exchange shall, at the option of the

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1 federally regulated exchange, be apportioned to this State by

2 multiplying such income by a fraction, the numerator of which

3 is its business income from sources within this State, and the

4 denominator of which is its business income from all sources.

5 For purposes of this subsection, the business income within

6 this State of a federally regulated exchange is the sum of the

7 following:

8 (1) Receipts attributable to transactions executed on

9 a physical trading floor if that physical trading floor is

10 located in this State.

11 (2) Receipts attributable to all other matching,

12 execution, or clearing transactions, including without

13 limitation receipts from the provision of matching,

14 execution, or clearing services to another entity,

15 multiplied by (i) for taxable years ending on or after

16 December 31, 2012 but before December 31, 2013, 63.77%; and

17 (ii) for taxable years ending on or after December 31,

18 2013, 27.54%.

19 (3) All other receipts not governed by subparagraphs

20 (1) or (2) of this subsection (c-1), to the extent the

21 receipts would be characterized as "sales in this State"

22 under item (3) of subsection (a) of this Section.

23 "Federally regulated exchange" means (i) a "registered

24 entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),

25 or (C), (ii) an "exchange" or "clearing agency" within the

26 meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such

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1 entities regulated under any successor regulatory structure to

2 the foregoing, and (iv) all taxpayers who are members of the

3 same unitary business group as a federally regulated exchange,

4 determined without regard to the prohibition in Section

5 1501(a)(27) of this Act against including in a unitary business

6 group taxpayers who are ordinarily required to apportion

7 business income under different subsections of this Section;

8 provided that this subparagraph (iv) shall apply only if 50% or

9 more of the business receipts of the unitary business group

10 determined by application of this subparagraph (iv) for the

11 taxable year are attributable to the matching, execution, or

12 clearing of transactions conducted by an entity described in

13 subparagraph (i), (ii), or (iii) of this paragraph.

14 In no event shall the Illinois apportionment percentage

15 computed in accordance with this subsection (c-1) for any

16 taxpayer for any tax year be less than the Illinois

17 apportionment percentage computed under this subsection (c-1)

18 for that taxpayer for the first full tax year ending on or

19 after December 31, 2013 for which this subsection (c-1) applied

20 to the taxpayer.

21 (d) Transportation services. For taxable years ending

22 before December 31, 2008, business income derived from

23 furnishing transportation services shall be apportioned to

24 this State in accordance with paragraphs (1) and (2):

25 (1) Such business income (other than that derived from

26 transportation by pipeline) shall be apportioned to this

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1 State by multiplying such income by a fraction, the

2 numerator of which is the revenue miles of the person in

3 this State, and the denominator of which is the revenue

4 miles of the person everywhere. For purposes of this

5 paragraph, a revenue mile is the transportation of 1

6 passenger or 1 net ton of freight the distance of 1 mile

7 for a consideration. Where a person is engaged in the

8 transportation of both passengers and freight, the

9 fraction above referred to shall be determined by means of

10 an average of the passenger revenue mile fraction and the

11 freight revenue mile fraction, weighted to reflect the

12 person's

13 (A) relative railway operating income from total

14 passenger and total freight service, as reported to the

15 Interstate Commerce Commission, in the case of

16 transportation by railroad, and

17 (B) relative gross receipts from passenger and

18 freight transportation, in case of transportation

19 other than by railroad.

20 (2) Such business income derived from transportation

21 by pipeline shall be apportioned to this State by

22 multiplying such income by a fraction, the numerator of

23 which is the revenue miles of the person in this State, and

24 the denominator of which is the revenue miles of the person

25 everywhere. For the purposes of this paragraph, a revenue

26 mile is the transportation by pipeline of 1 barrel of oil,

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1 1,000 cubic feet of gas, or of any specified quantity of

2 any other substance, the distance of 1 mile for a

3 consideration.

4 (3) For taxable years ending on or after December 31,

5 2008, business income derived from providing

6 transportation services other than airline services shall

7 be apportioned to this State by using a fraction, (a) the

8 numerator of which shall be (i) all receipts from any

9 movement or shipment of people, goods, mail, oil, gas, or

10 any other substance (other than by airline) that both

11 originates and terminates in this State, plus (ii) that

12 portion of the person's gross receipts from movements or

13 shipments of people, goods, mail, oil, gas, or any other

14 substance (other than by airline) that originates in one

15 state or jurisdiction and terminates in another state or

16 jurisdiction, that is determined by the ratio that the

17 miles traveled in this State bears to total miles

18 everywhere and (b) the denominator of which shall be all

19 revenue derived from the movement or shipment of people,

20 goods, mail, oil, gas, or any other substance (other than

21 by airline). Where a taxpayer is engaged in the

22 transportation of both passengers and freight, the

23 fraction above referred to shall first be determined

24 separately for passenger miles and freight miles. Then an

25 average of the passenger miles fraction and the freight

26 miles fraction shall be weighted to reflect the taxpayer's:

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1 (A) relative railway operating income from total

2 passenger and total freight service, as reported to the

3 Surface Transportation Board, in the case of

4 transportation by railroad; and

5 (B) relative gross receipts from passenger and

6 freight transportation, in case of transportation

7 other than by railroad.

8 (4) For taxable years ending on or after December 31,

9 2008, business income derived from furnishing airline

10 transportation services shall be apportioned to this State

11 by multiplying such income by a fraction, the numerator of

12 which is the revenue miles of the person in this State, and

13 the denominator of which is the revenue miles of the person

14 everywhere. For purposes of this paragraph, a revenue mile

15 is the transportation of one passenger or one net ton of

16 freight the distance of one mile for a consideration. If a

17 person is engaged in the transportation of both passengers

18 and freight, the fraction above referred to shall be

19 determined by means of an average of the passenger revenue

20 mile fraction and the freight revenue mile fraction,

21 weighted to reflect the person's relative gross receipts

22 from passenger and freight airline transportation.

23 (e) Combined apportionment. Where 2 or more persons are

24 engaged in a unitary business as described in subsection

25 (a)(27) of Section 1501, a part of which is conducted in this

26 State by one or more members of the group, the business income

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1 attributable to this State by any such member or members shall

2 be apportioned by means of the combined apportionment method.

3 (f) Alternative allocation. If the allocation and

4 apportionment provisions of subsections (a) through (e) and of

5 subsection (h) do not fairly represent the extent of a person's

6 business activity in this State, the person may petition for,

7 or the Director may, without a petition, permit or require, in

8 respect of all or any part of the person's business activity,

9 if reasonable:

10 (1) Separate accounting;

11 (2) The exclusion of any one or more factors;

12 (3) The inclusion of one or more additional factors

13 which will fairly represent the person's business

14 activities in this State; or

15 (4) The employment of any other method to effectuate an

16 equitable allocation and apportionment of the person's

17 business income.

18 (g) Cross reference. For allocation of business income by

19 residents, see Section 301(a).

20 (h) For tax years ending on or after December 31, 1998, the

21 apportionment factor of persons who apportion their business

22 income to this State under subsection (a) shall be equal to:

23 (1) for tax years ending on or after December 31, 1998

24 and before December 31, 1999, 16 2/3% of the property

25 factor plus 16 2/3% of the payroll factor plus 66 2/3% of

26 the sales factor;

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1 (2) for tax years ending on or after December 31, 1999

2 and before December 31, 2000, 8 1/3% of the property factor

3 plus 8 1/3% of the payroll factor plus 83 1/3% of the sales

4 factor;

5 (3) for tax years ending on or after December 31, 2000,

6 the sales factor.

7 If, in any tax year ending on or after December 31, 1998 and

8 before December 31, 2000, the denominator of the payroll,

9 property, or sales factor is zero, the apportionment factor

10 computed in paragraph (1) or (2) of this subsection for that

11 year shall be divided by an amount equal to 100% minus the

12 percentage weight given to each factor whose denominator is

13 equal to zero.

14 (Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11;

15 97-636, eff. 6-1-12.)

16 (35 ILCS 5/710) (from Ch. 120, par. 7-710)

17 Sec. 710. Withholding from lottery winnings.

18 (a) In General.

19 (1)Any person making a payment to a resident or

20 nonresident of winnings under the Illinois Lottery Law and

21 not required to withhold Illinois income tax from such

22 payment under Subsection (b) of Section 701 of this Act

23 because those winnings are not subject to Federal income

24 tax withholding, must withhold Illinois income tax from

25 such payment at a rate equal to the percentage tax rate for

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1 individuals provided in subsection (b) of Section 201,

2 provided that withholding is not required if such payment

3 of winnings is less than $1,000.

4 (2) Any person making a payment after December 31, 2013

5 to a resident or nonresident of winnings from pari-mutuel

6 wagering conducted at a wagering facility licensed under

7 the Illinois Horse Racing Act of 1975 or from gambling

8 games conducted on a riverboat or in a casino or electronic

9 gaming facility licensed under the Illinois Gambling Act

10 must withhold Illinois income tax from such payment at a

11 rate equal to the percentage tax rate for individuals

12 provided in subsection (b) of Section 201, provided that

13 the person making the payment is required to withhold under

14 Section 3402(q) of the Internal Revenue Code.

15 (b) Credit for taxes withheld. Any amount withheld under

16 Subsection (a) shall be a credit against the Illinois income

17 tax liability of the person to whom the payment of winnings was

18 made for the taxable year in which that person incurred an

19 Illinois income tax liability with respect to those winnings.

20 (Source: P.A. 85-731.)

21 Section 90-23. The Property Tax Code is amended by adding

22 Section 15-144 as follows:

23 (35 ILCS 200/15-144 new)

24 Sec. 15-144. Chicago Casino Development Authority. All

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1 property owned by the Chicago Casino Development Authority is

2 exempt. Any property owned by the Chicago Casino Development

3 Authority and leased to any other entity is not exempt.

4 Section 90-24. The Illinois Municipal Code is amended by

5 adding Section 8-10-2.6 as follows:

6 (65 ILCS 5/8-10-2.6 new)

7 Sec. 8-10-2.6. Chicago Casino Development Authority.

8 Except as otherwise provided in the Chicago Casino Development

9 Authority Act, this Division 10 applies to purchase orders and

10 contracts relating to the Chicago Casino Development

11 Authority.

12 Section 90-25. The Joliet Regional Port District Act is

13 amended by changing Section 5.1 as follows:

14 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)

15 Sec. 5.1. Riverboat and casino gambling. Notwithstanding

16 any other provision of this Act, the District may not regulate

17 the operation, conduct, or navigation of any riverboat gambling

18 casino licensed under the Illinois ~~Riverboat~~Gambling Act, and

19 the District may not license, tax, or otherwise levy any

20 assessment of any kind on any riverboat gambling casino

21 licensed under the Illinois ~~Riverboat~~Gambling Act. The General

22 Assembly declares that the powers to regulate the operation,

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1 conduct, and navigation of riverboat gambling casinos and to

2 license, tax, and levy assessments upon riverboat gambling

3 casinos are exclusive powers of the State of Illinois and the

4 Illinois Gaming Board as provided in theIllinois ~~Riverboat~~

5 Gambling Act.

6 (Source: P.A. 87-1175.)

7 Section 90-30. The Consumer Installment Loan Act is amended

8 by changing Section 12.5 as follows:

9 (205 ILCS 670/12.5)

10 Sec. 12.5. Limited purpose branch.

11 (a) Upon the written approval of the Director, a licensee

12 may maintain a limited purpose branch for the sole purpose of

13 making loans as permitted by this Act. A limited purpose branch

14 may include an automatic loan machine. No other activity shall

15 be conducted at the site, including but not limited to,

16 accepting payments, servicing the accounts, or collections.

17 (b) The licensee must submit an application for a limited

18 purpose branch to the Director on forms prescribed by the

19 Director with an application fee of $300. The approval for the

20 limited purpose branch must be renewed concurrently with the

21 renewal of the licensee's license along with a renewal fee of

22 $300 for the limited purpose branch.

23 (c) The books, accounts, records, and files of the limited

24 purpose branch's transactions shall be maintained at the

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1 licensee's licensed location. The licensee shall notify the

2 Director of the licensed location at which the books, accounts,

3 records, and files shall be maintained.

4 (d) The licensee shall prominently display at the limited

5 purpose branch the address and telephone number of the

6 licensee's licensed location.

7 (e) No other business shall be conducted at the site of the

8 limited purpose branch unless authorized by the Director.

9 (f) The Director shall make and enforce reasonable rules

10 for the conduct of a limited purpose branch.

11 (g) A limited purpose branch may not be located within

12 1,000 feet of a facility operated by an inter-track wagering

13 licensee or an organization licensee subject to the Illinois

14 Horse Racing Act of 1975, on a riverboator in a casino subject

15 to theIllinois ~~Riverboat~~ Gambling Act, or within 1,000 feet of

16 the location at which the riverboat docksor within 1,000 feet

17 of a casino.

18 (Source: P.A. 90-437, eff. 1-1-98.)

19 Section 90-35. The Illinois Horse Racing Act of 1975 is

20 amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,

21 20, 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, and

22 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,

23 34.3, 39.2, and 56 as follows:

24 (230 ILCS 5/1.2)

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1 Sec. 1.2. Legislative intent. This Act is intended to

2 benefit the people of the State of Illinois byencouraging the

3 breeding and production of race horses,assisting economic

4 development and promoting Illinois tourism. The General

5 Assembly finds and declares it to be the public policy of the

6 State of Illinois to:

7 (a) support and enhance Illinois' horse racing industry,

8 which is a significant component within the agribusiness

9 industry;

10 (b) ensure that Illinois' horse racing industry remains

11 competitive with neighboring states;

12 (c) stimulate growth within Illinois' horse racing

13 industry, thereby encouraging new investment and development

14 to produce additional tax revenues and to create additional

15 jobs;

16 (d) promote the further growth of tourism;

17 (e) encourage the breeding of thoroughbred and

18 standardbred horses in this State; and

19 (f) ensure that public confidence and trust in the

20 credibility and integrity of racing operations and the

21 regulatory process is maintained.

22 (Source: P.A. 91-40, eff. 6-25-99.)

23 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)

24 Sec. 3.11. "Organization Licensee" means any person

25 receiving an organization license from the Board to conduct a

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1 race meeting or meetings. With respect only to electronic

2 gaming, "organization licensee" includes the authorization for

3 an electronic gaming license under subsection (a) of Section 56

4 of this Act.

5 (Source: P.A. 79-1185.)

6 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)

7 Sec. 3.12. Pari-mutuel system of wagering."Pari-mutuel

8 system of wagering" means a form of wagering on the outcome of

9 horse races in which wagers are made in various denominations

10 on a horse or horses and all wagers for each race are pooled

11 and held by a licensee for distribution in a manner approved by

12 the Board. "Pari-mutuel system of wagering" shall not include

13 wagering on historic races. Wagers may be placed via any method

14 or at any location authorized under this Act.

15 (Source: P.A. 96-762, eff. 8-25-09.)

16 (230 ILCS 5/3.31 new)

17 Sec. 3.31. Adjusted gross receipts. "Adjusted gross

18 receipts" means the gross receipts less winnings paid to

19 wagerers.

20 (230 ILCS 5/3.32 new)

21 Sec. 3.32. Gross receipts. "Gross receipts" means the total

22 amount of money exchanged for the purchase of chips, tokens, or

23 electronic cards by riverboat or casino patrons or electronic

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1 gaming patrons.

2 (230 ILCS 5/3.33 new)

3 Sec. 3.33. Electronic gaming. "Electronic gaming" means

4 slot machine gambling, video game of chance gambling, or

5 gambling with electronic gambling games as defined in the

6 Illinois Gambling Act or defined by the Illinois Gaming Board

7 that is conducted at a race track pursuant to an electronic

8 gaming license.

9 (230 ILCS 5/3.35 new)

10 Sec. 3.35. Electronic gaming license. "Electronic gaming

11 license" means a license issued by the Illinois Gaming Board

12 under Section 7.6 of the Illinois Gambling Act authorizing

13 electronic gaming at an electronic gaming facility.

14 (230 ILCS 5/3.36 new)

15 Sec. 3.36. Electronic gaming facility. "Electronic gaming

16 facility" means that portion of an organization licensee's race

17 track facility at which electronic gaming is conducted.

18 (230 ILCS 5/6) (from Ch. 8, par. 37-6)

19 Sec. 6. Restrictions on Board members.

20 (a) No person shall be appointed a member of the Board or

21 continue to be a member of the Board if the person or any

22 member of their immediate family is a member of the Board of

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1 Directors, employee, or financially interested in any of the

2 following: (i) any licensee or other person who has applied for

3 racing dates to the Board, or the operations thereof including,

4 but not limited to, concessions, data processing, track

5 maintenance, track security, and pari-mutuel operations,

6 located, scheduled or doing business within the State of

7 Illinois, (ii) any race horse competing at a meeting under the

8 Board's jurisdiction, or (iii) any licensee under the Illinois

9 Gambling Act. ~~No person shall be appointed a member of the~~

10 ~~Board or continue to be a member of the Board who is (or any~~

11 ~~member of whose family is) a member of the Board of Directors~~

12 ~~of, or who is a person financially interested in, any licensee~~

13 ~~or other person who has applied for racing dates to the Board,~~

14 ~~or the operations thereof including, but not limited to,~~

15 ~~concessions, data processing, track maintenance, track~~

16 ~~security and pari-mutuel operations, located, scheduled or~~

17 ~~doing business within the State of Illinois, or in any race~~

18 ~~horse competing at a meeting under the Board's jurisdiction. No~~

19 ~~Board member shall hold any other public office for which he~~

20 ~~shall receive compensation other than necessary travel or other~~

21 ~~incidental expenses.~~

22 (b) No person shall be a member of the Board who is not of

23 good moral character or who has been convicted of, or is under

24 indictment for, a felony under the laws of Illinois or any

25 other state, or the United States.

26 (c) No member of the Board or employee shall engage in any

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1 political activity.

2 For the purposes of this subsection (c):

3 "Political" means any activity in support of or in

4 connection with any campaign for State or local elective office

5 or any political organization, but does not include activities

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

7 legislative, or administrative action (as those terms are

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

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

10 in furtherance of the person's official State duties or

11 governmental and public service functions.

12 "Political organization" means a party, committee,

13 association, fund, or other organization (whether or not

14 incorporated) that is required to file a statement of

15 organization with the State Board of Elections or county clerk

16 under Section 9-3 of the Election Code, but only with regard to

17 those activities that require filing with the State Board of

18 Elections or county clerk.

19 (d) Board members and employees may not engage in

20 communications or any activity that may cause or have the

21 appearance of causing a conflict of interest. A conflict of

22 interest exists if a situation influences or creates the

23 appearance that it may influence judgment or performance of

24 regulatory duties and responsibilities. This prohibition shall

25 extend to any act identified by Board action that, in the

26 judgment of the Board, could represent the potential for or the

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1 appearance of a conflict of interest.

2 (e) Board members and employees may not accept any gift,

3 gratuity, service, compensation, travel, lodging, or thing of

4 value, with the exception of unsolicited items of an incidental

5 nature, from any person, corporation, limited liability

6 company, or entity doing business with the Board.

7 (f) A Board member or employee shall not use or attempt to

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

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

10 himself or herself or others. No Board member or employee,

11 within a period of one year immediately preceding nomination by

12 the Governor or employment, shall have been employed or

13 received compensation or fees for services from a person or

14 entity, or its parent or affiliate, that has engaged in

15 business with the Board, a licensee or a licensee under the

16 Illinois Gambling Act. In addition, all Board members and

17 employees are subject to the restrictions set forth in Section

18 5-45 of the State Officials and Employees Ethics Act.

19 (Source: P.A. 89-16, eff. 5-30-95.)

20 (230 ILCS 5/9) (from Ch. 8, par. 37-9)

21 Sec. 9. The Board shall have all powers necessary and

22 proper to fully and effectively execute the provisions of this

23 Act, including, but not limited to, the following:

24 (a) The Board is vested with jurisdiction and supervision

25 over all race meetings in this State, over all licensees doing

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1 business in this State, over all occupation licensees, and over

2 all persons on the facilities of any licensee. Such

3 jurisdiction shall include the power to issue licenses to the

4 Illinois Department of Agriculture authorizing the pari-mutuel

5 system of wagering on harness and Quarter Horse races held (1)

6 at the Illinois State Fair in Sangamon County, and (2) at the

7 DuQuoin State Fair in Perry County. The jurisdiction of the

8 Board shall also include the power to issue licenses to county

9 fairs which are eligible to receive funds pursuant to the

10 Agricultural Fair Act, as now or hereafter amended, or their

11 agents, authorizing the pari-mutuel system of wagering on horse

12 races conducted at the county fairs receiving such licenses.

13 Such licenses shall be governed by subsection (n) of this

14 Section.

15 Upon application, the Board shall issue a license to the

16 Illinois Department of Agriculture to conduct harness and

17 Quarter Horse races at the Illinois State Fair and at the

18 DuQuoin State Fairgrounds during the scheduled dates of each

19 fair. The Board shall not require and the Department of

20 Agriculture shall be exempt from the requirements of Sections

21 15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),

22 (e-10), (f), (g), and (h) of Section 20, and Sections 21, 24

23 and 25. The Board and the Department of Agriculture may extend

24 any or all of these exemptions to any contractor or agent

25 engaged by the Department of Agriculture to conduct its race

26 meetings when the Board determines that this would best serve

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1 the public interest and the interest of horse racing.

2 Notwithstanding any provision of law to the contrary, it

3 shall be lawful for any licensee to operate pari-mutuel

4 wagering or contract with the Department of Agriculture to

5 operate pari-mutuel wagering at the DuQuoin State Fairgrounds

6 or for the Department to enter into contracts with a licensee,

7 employ its owners, employees or agents and employ such other

8 occupation licensees as the Department deems necessary in

9 connection with race meetings and wagerings.

10 (b) The Board is vested with the full power to promulgate

11 reasonable rules and regulations for the purpose of

12 administering the provisions of this Act and to prescribe

13 reasonable rules, regulations and conditions under which all

14 horse race meetings or wagering in the State shall be

15 conducted. Such reasonable rules and regulations are to provide

16 for the prevention of practices detrimental to the public

17 interest and to promote the best interests of horse racing and

18 to impose penalties for violations thereof.

19 (c) The Board, and any person or persons to whom it

20 delegates this power, is vested with the power to enter the

21 facilities and other places of business of any licensee to

22 determine whether there has been compliance with the provisions

23 of this Act and its rules and regulations.

24 (d) The Board, and any person or persons to whom it

25 delegates this power, is vested with the authority to

26 investigate alleged violations of the provisions of this Act,

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1 its reasonable rules and regulations, orders and final

2 decisions; the Board shall take appropriate disciplinary

3 action against any licensee or occupation licensee for

4 violation thereof or institute appropriate legal action for the

5 enforcement thereof.

6 (e) The Board, and any person or persons to whom it

7 delegates this power, may eject or exclude from any race

8 meeting or the facilities of any licensee, or any part thereof,

9 any occupation licensee or any other individual whose conduct

10 or reputation is such that his presence on those facilities

11 may, in the opinion of the Board, call into question the

12 honesty and integrity of horse racing or wagering or interfere

13 with the orderly conduct of horse racing or wagering; provided,

14 however, that no person shall be excluded or ejected from the

15 facilities of any licensee solely on the grounds of race,

16 color, creed, national origin, ancestry, or sex. The power to

17 eject or exclude an occupation licensee or other individual may

18 be exercised for just cause by the licensee or the Board,

19 subject to subsequent hearing by the Board as to the propriety

20 of said exclusion.

21 (f) The Board is vested with the power to acquire,

22 establish, maintain and operate (or provide by contract to

23 maintain and operate) testing laboratories and related

24 facilities, for the purpose of conducting saliva, blood, urine

25 and other tests on the horses run or to be run in any horse race

26 meeting, including races run at county fairs, and to purchase

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1 all equipment and supplies deemed necessary or desirable in

2 connection with any such testing laboratories and related

3 facilities and all such tests.

4 (g) The Board may require that the records, including

5 financial or other statements of any licensee or any person

6 affiliated with the licensee who is involved directly or

7 indirectly in the activities of any licensee as regulated under

8 this Act to the extent that those financial or other statements

9 relate to such activities be kept in such manner as prescribed

10 by the Board, and that Board employees shall have access to

11 those records during reasonable business hours. Within 120 days

12 of the end of its fiscal year, each licensee shall transmit to

13 the Board an audit of the financial transactions and condition

14 of the licensee's total operations. All audits shall be

15 conducted by certified public accountants. Each certified

16 public accountant must be registered in the State of Illinois

17 under the Illinois Public Accounting Act. The compensation for

18 each certified public accountant shall be paid directly by the

19 licensee to the certified public accountant. A licensee shall

20 also submit any other financial or related information the

21 Board deems necessary to effectively administer this Act and

22 all rules, regulations, and final decisions promulgated under

23 this Act.

24 (h) The Board shall name and appoint in the manner provided

25 by the rules and regulations of the Board: an Executive

26 Director; a State director of mutuels; State veterinarians and

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1 representatives to take saliva, blood, urine and other tests on

2 horses; licensing personnel; revenue inspectors; and State

3 seasonal employees (excluding admission ticket sellers and

4 mutuel clerks). All of those named and appointed as provided in

5 this subsection shall serve during the pleasure of the Board;

6 their compensation shall be determined by the Board and be paid

7 in the same manner as other employees of the Board under this

8 Act.

9 (i) The Board shall require that there shall be 3 stewards

10 at each horse race meeting, at least 2 of whom shall be named

11 and appointed by the Board. Stewards appointed or approved by

12 the Board, while performing duties required by this Act or by

13 the Board, shall be entitled to the same rights and immunities

14 as granted to Board members and Board employees in Section 10

15 of this Act.

16 (j) The Board may discharge any Board employee who fails or

17 refuses for any reason to comply with the rules and regulations

18 of the Board, or who, in the opinion of the Board, is guilty of

19 fraud, dishonesty or who is proven to be incompetent. The Board

20 shall have no right or power to determine who shall be

21 officers, directors or employees of any licensee, or their

22 salaries except the Board may, by rule, require that all or any

23 officials or employees in charge of or whose duties relate to

24 the actual running of races be approved by the Board.

25 (k) The Board is vested with the power to appoint delegates

26 to execute any of the powers granted to it under this Section

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1 for the purpose of administering this Act and any rules or

2 regulations promulgated in accordance with this Act.

3 (l) The Board is vested with the power to impose civil

4 penalties of up to $5,000 against an individual and up to

5 $10,000 against a licensee for each violation of any provision

6 of this Act, any rules adopted by the Board, any order of the

7 Board or any other action which, in the Board's discretion, is

8 a detriment or impediment to horse racing or wagering.

9 Beginning on the date when any organization licensee begins

10 conducting electronic gaming pursuant to an electronic gaming

11 license issued under the Illinois Gambling Act, the power

12 granted to the Board pursuant to this subsection (l) shall

13 authorize the Board to impose penalties of up to $10,000

14 against an individual and up to $25,000 against a licensee. All

15 such civil penalties shall be deposited into the Horse Racing

16 Fund.

17 (m) The Board is vested with the power to prescribe a form

18 to be used by licensees as an application for employment for

19 employees of each licensee.

20 (n) The Board shall have the power to issue a license to

21 any county fair, or its agent, authorizing the conduct of the

22 pari-mutuel system of wagering. The Board is vested with the

23 full power to promulgate reasonable rules, regulations and

24 conditions under which all horse race meetings licensed

25 pursuant to this subsection shall be held and conducted,

26 including rules, regulations and conditions for the conduct of

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1 the pari-mutuel system of wagering. The rules, regulations and

2 conditions shall provide for the prevention of practices

3 detrimental to the public interest and for the best interests

4 of horse racing, and shall prescribe penalties for violations

5 thereof. Any authority granted the Board under this Act shall

6 extend to its jurisdiction and supervision over county fairs,

7 or their agents, licensed pursuant to this subsection. However,

8 the Board may waive any provision of this Act or its rules or

9 regulations which would otherwise apply to such county fairs or

10 their agents.

11 (o) Whenever the Board is authorized or required by law to

12 consider some aspect of criminal history record information for

13 the purpose of carrying out its statutory powers and

14 responsibilities, then, upon request and payment of fees in

15 conformance with the requirements of Section 2605-400 of the

16 Department of State Police Law (20 ILCS 2605/2605-400), the

17 Department of State Police is authorized to furnish, pursuant

18 to positive identification, such information contained in

19 State files as is necessary to fulfill the request.

20 (p) To insure the convenience, comfort, and wagering

21 accessibility of race track patrons, to provide for the

22 maximization of State revenue, and to generate increases in

23 purse allotments to the horsemen, the Board shall require any

24 licensee to staff the pari-mutuel department with adequate

25 personnel.

26 (Source: P.A. 97-1060, eff. 8-24-12.)

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1 (230 ILCS 5/15) (from Ch. 8, par. 37-15)

2 Sec. 15. (a) The Board shall, in its discretion, issue

3 occupation licenses to horse owners, trainers, harness

4 drivers, jockeys, agents, apprentices, grooms, stable foremen,

5 exercise persons, veterinarians, valets, blacksmiths,

6 concessionaires and others designated by the Board whose work,

7 in whole or in part, is conducted upon facilities within the

8 State. Such occupation licenses will be obtained prior to the

9 persons engaging in their vocation upon such facilities. The

10 Board shall not license pari-mutuel clerks, parking

11 attendants, security guards and employees of concessionaires.

12 No occupation license shall be required of any person who works

13 at facilities within this State as a pari-mutuel clerk, parking

14 attendant, security guard or as an employee of a

15 concessionaire. Concessionaires of the Illinois State Fair and

16 DuQuoin State Fair and employees of the Illinois Department of

17 Agriculture shall not be required to obtain an occupation

18 license by the Board.

19 (b) Each application for an occupation license shall be on

20 forms prescribed by the Board. Such license, when issued, shall

21 be for the period ending December 31 of each year, except that

22 the Board in its discretion may grant 3-year licenses. The

23 application shall be accompanied by a fee of not more than $25

24 per year or, in the case of 3-year occupation license

25 applications, a fee of not more than $60. Each applicant shall

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1 set forth in the application his full name and address, and if

2 he had been issued prior occupation licenses or has been

3 licensed in any other state under any other name, such name,

4 his age, whether or not a permit or license issued to him in

5 any other state has been suspended or revoked and if so whether

6 such suspension or revocation is in effect at the time of the

7 application, and such other information as the Board may

8 require. Fees for registration of stable names shall not exceed

9 $50.00. Beginning on the date when any organization licensee

10 begins conducting electronic gaming pursuant to an electronic

11 gambling license issued under the Illinois Gambling Act, the

12 fee for registration of stable names shall not exceed $150, and

13 the application fee for an occupation license shall not exceed

14 $75, per year or, in the case of a 3-year occupation license

15 application, the fee shall not exceed $180.

16 (c) The Board may in its discretion refuse an occupation

17 license to any person:

18 (1) who has been convicted of a crime;

19 (2) who is unqualified to perform the duties required

20 of such applicant;

21 (3) who fails to disclose or states falsely any

22 information called for in the application;

23 (4) who has been found guilty of a violation of this

24 Act or of the rules and regulations of the Board; or

25 (5) whose license or permit has been suspended, revoked

26 or denied for just cause in any other state.

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1 (d) The Board may suspend or revoke any occupation license:

2 (1) for violation of any of the provisions of this Act;

3 or

4 (2) for violation of any of the rules or regulations of

5 the Board; or

6 (3) for any cause which, if known to the Board, would

7 have justified the Board in refusing to issue such

8 occupation license; or

9 (4) for any other just cause.

10 (e) Each applicant shall submit his or her fingerprints

11 to the Department of State Police in the form and manner

12 prescribed by the Department of State Police. These

13 fingerprints shall be checked against the fingerprint records

14 now and hereafter filed in the Department of State Police and

15 Federal Bureau of Investigation criminal history records

16 databases. The Department of State Police shall charge a fee

17 for conducting the criminal history records check, which shall

18 be deposited in the State Police Services Fund and shall not

19 exceed the actual cost of the records check. The Department of

20 State Police shall furnish, pursuant to positive

21 identification, records of conviction to the Board. Each

22 applicant for licensure shall submit with his occupation

23 license application, on forms provided by the Board, 2 sets of

24 his fingerprints. All such applicants shall appear in person at

25 the location designated by the Board for the purpose of

26 submitting such sets of fingerprints; however, with the prior

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1 approval of a State steward, an applicant may have such sets of

2 fingerprints taken by an official law enforcement agency and

3 submitted to the Board.

4 (f) The Board may, in its discretion, issue an occupation

5 license without submission of fingerprints if an applicant has

6 been duly licensed in another recognized racing jurisdiction

7 after submitting fingerprints that were subjected to a Federal

8 Bureau of Investigation criminal history background check in

9 that jurisdiction.

10 (g) Beginning on the date when any organization licensee

11 begins conducting electronic gambling pursuant to an

12 electronic gaming license issued under the Illinois Gambling

13 Act, the Board may charge each applicant a reasonable

14 non-refundable fee to defray the costs associated with the

15 background investigation conducted by the Board. This fee shall

16 be exclusive of any other fee or fees charged in connection

17 with an application for and, if applicable, the issuance of, an

18 electronic gaming license. If the costs of the investigation

19 exceed the amount of the fee charged, the Board shall

20 immediately notify the applicant of the additional amount owed,

21 payment of which must be submitted to the Board within 7 days

22 after such notification. All information, records, interviews,

23 reports, statements, memoranda, or other data supplied to or

24 used by the Board in the course of its review or investigation

25 of an applicant for a license or renewal under this Act shall

26 be privileged, strictly confidential, and shall be used only

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1 for the purpose of evaluating an applicant for a license or a

2 renewal. Such information, records, interviews, reports,

3 statements, memoranda, or other data shall not be admissible as

4 evidence, nor discoverable, in any action of any kind in any

5 court or before any tribunal, board, agency, or person, except

6 for any action deemed necessary by the Board.

7 (Source: P.A. 93-418, eff. 1-1-04.)

8 (230 ILCS 5/18) (from Ch. 8, par. 37-18)

9 Sec. 18. (a) Together with its application, each applicant

10 for racing dates shall deliver to the Board a certified check

11 or bank draft payable to the order of the Board for $1,000. In

12 the event the applicant applies for racing dates in 2 or 3

13 successive calendar years as provided in subsection (b) of

14 Section 21, the fee shall be $2,000. Filing fees shall not be

15 refunded in the event the application is denied.Beginning on

16 the date when any organization licensee begins conducting

17 electronic gaming pursuant to an electronic gaming license

18 issued under the Illinois Gambling Act, the application fee for

19 racing dates imposed by this subsection (a) shall be $10,000

20 and the application fee for racing dates in 2 or 3 successive

21 calendar years as provided in subsection (b) of Section 21

22 shall be $20,000. All filing fees shall be deposited into the

23 Horse Racing Fund.

24 (b) In addition to the filing fee imposed by subsection (a)

25 ~~of $1000~~and the fees provided in subsection (j) of Section 20,

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1 each organization licensee shall pay a license fee of $100 for

2 each racing program on which its daily pari-mutuel handle is

3 $400,000 or more but less than $700,000, and a license fee of

4 $200 for each racing program on which its daily pari-mutuel

5 handle is $700,000 or more. The additional fees required to be

6 paid under this Section by this amendatory Act of 1982 shall be

7 remitted by the organization licensee to the Illinois Racing

8 Board with each day's graduated privilege tax or pari-mutuel

9 tax and breakage as provided under Section 27.Beginning on the

10 date when any organization licensee begins conducting

11 electronic gaming pursuant to an electronic gaming license

12 issued under the Illinois Gambling Act, the license fee imposed

13 by this subsection (b) shall be $200 for each racing program on

14 which the organization licensee's daily pari-mutuel handle is

15 $100,000 or more, but less than $400,000, and the license fee

16 imposed by this subsection (b) shall be $400 for each racing

17 program on which the organization licensee's daily pari-mutuel

18 handle is $400,000 or more.

19 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois

20 Municipal Code," approved May 29, 1961, as now or hereafter

21 amended, shall not apply to any license under this Act.

22 (Source: P.A. 97-1060, eff. 8-24-12.)

23 (230 ILCS 5/19) (from Ch. 8, par. 37-19)

24 Sec. 19. (a) No organization license may be granted to

25 conduct a horse race meeting:

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1 (1) except as provided in subsection (c) of Section 21

2 of this Act, to any person at any place within 35 miles of

3 any other place licensed by the Board to hold a race

4 meeting on the same date during the same hours, the mileage

5 measurement used in this subsection (a) shall be certified

6 to the Board by the Bureau of Systems and Services in the

7 Illinois Department of Transportation as the most commonly

8 used public way of vehicular travel;

9 (2) to any person in default in the payment of any

10 obligation or debt due the State under this Act, provided

11 no applicant shall be deemed in default in the payment of

12 any obligation or debt due to the State under this Act as

13 long as there is pending a hearing of any kind relevant to

14 such matter;

15 (3) to any person who has been convicted of the

16 violation of any law of the United States or any State law

17 which provided as all or part of its penalty imprisonment

18 in any penal institution; to any person against whom there

19 is pending a Federal or State criminal charge; to any

20 person who is or has been connected with or engaged in the

21 operation of any illegal business; to any person who does

22 not enjoy a general reputation in his community of being an

23 honest, upright, law-abiding person; provided that none of

24 the matters set forth in this subparagraph (3) shall make

25 any person ineligible to be granted an organization license

26 if the Board determines, based on circumstances of any such

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1 case, that the granting of a license would not be

2 detrimental to the interests of horse racing and of the

3 public;

4 (4) to any person who does not at the time of

5 application for the organization license own or have a

6 contract or lease for the possession of a finished race

7 track suitable for the type of racing intended to be held

8 by the applicant and for the accommodation of the public.

9 (b) (Blank) ~~Horse racing on Sunday shall be prohibited~~

10 ~~unless authorized by ordinance or referendum of the~~

11 ~~municipality in which a race track or any of its appurtenances~~

12 ~~or facilities are located, or utilized~~.

13 (c) If any person is ineligible to receive an organization

14 license because of any of the matters set forth in subsection

15 (a) (2) or subsection (a) (3) of this Section, any other or

16 separate person that either (i) controls, directly or

17 indirectly, such ineligible person or (ii) is controlled,

18 directly or indirectly, by such ineligible person or by a

19 person which controls, directly or indirectly, such ineligible

20 person shall also be ineligible.

21 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)

22 (230 ILCS 5/20) (from Ch. 8, par. 37-20)

23 Sec. 20. (a) Any person desiring to conduct a horse race

24 meeting may apply to the Board for an organization license. The

25 application shall be made on a form prescribed and furnished by

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1 the Board. The application shall specify:

2 (1) the dates on which it intends to conduct the horse

3 race meeting, which dates shall be provided under Section

4 21;

5 (2) the hours of each racing day between which it

6 intends to hold or conduct horse racing at such meeting;

7 (3) the location where it proposes to conduct the

8 meeting; and

9 (4) any other information the Board may reasonably

10 require.

11 (b) A separate application for an organization license

12 shall be filed for each horse race meeting which such person

13 proposes to hold. Any such application, if made by an

14 individual, or by any individual as trustee, shall be signed

15 and verified under oath by such individual. If the application

16 ismade by individuals, then it shall be signed and verified

17 under oath by at least 2 of the individuals; if the application

18 is made by ~~or~~ a partnership, ~~it shall be signed and verified~~

19 ~~under oath by at least 2 of such individuals or members of such~~

20 ~~partnership as the case may be. If made by~~ an association, a

21 corporation, acorporate trustee, a limited liability company,

22 or any other entity, it shall be signed by an authorized

23 officer, a partner, a member, or a manager, as the case may be,

24 of the entity ~~the president and attested by the secretary or~~

25 ~~assistant secretary under the seal of such association, trust~~

26 ~~or corporation if it has a seal, and shall also be verified~~

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1 ~~under oath by one of the signing officers~~.

2 (c) The application shall specify:

3 (1)the name of the persons, association, trust, or

4 corporation making such application; ~~and~~

5 (2) the principal~~post office~~ address of the applicant;

6 (3)if the applicant is a trustee, the names and

7 addresses of the beneficiaries; if the applicant is a

8 corporation, the names and~~post office~~ addresses of all

9 officers, stockholders and directors; or if such

10 stockholders hold stock as a nominee or fiduciary, the

11 names and ~~post office~~ addresses of the parties ~~these~~

12 ~~persons, partnerships, corporations, or trusts~~who are the

13 beneficial owners thereof or who are beneficially

14 interested therein;~~and~~ if the applicant is a partnership,

15 the names and ~~post office~~addresses of all partners,

16 general or limited; if the applicant is a limited liability

17 company, the names and addresses of the manager and

18 members; and if the applicant is any other entity, the

19 names and addresses of all officers or other authorized

20 persons of the entity ~~corporation, the name of the state of~~

21 ~~its incorporation shall be specified~~.

22 (d) The applicant shall execute and file with the Board a

23 good faith affirmative action plan to recruit, train, and

24 upgrade minorities in all classifications within the

25 association.

26 (e) With such application there shall be delivered to the

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1 Board a certified check or bank draft payable to the order of

2 the Board for an amount equal to $1,000. All applications for

3 the issuance of an organization license shall be filed with the

4 Board before August 1 of the year prior to the year for which

5 application is made and shall be acted upon by the Board at a

6 meeting to be held on such date as shall be fixed by the Board

7 during the last 15 days of September of such prior year. At

8 such meeting, the Board shall announce the award of the racing

9 meets, live racing schedule, and designation of host track to

10 the applicants and its approval or disapproval of each

11 application. No announcement shall be considered binding until

12 a formal order is executed by the Board, which shall be

13 executed no later than October 15 of that prior year. Absent

14 the agreement of the affected organization licensees, the Board

15 shall not grant overlapping race meetings to 2 or more tracks

16 that are within 100 miles of each other to conduct the

17 thoroughbred racing.

18 (e-1) In awarding standardbred racing dates for calendar

19 year 2014 and thereafter, the Board shall award at least 310

20 racing days, and each organization licensee shall average at

21 least 12 races for each racing day awarded. The Board shall

22 have the discretion to allocate those racing days among

23 organization licensees requesting standardbred racing dates.

24 Once awarded by the Board, organization licensees awarded

25 standardbred racing dates shall run at least 3,500 races in

26 total during that calendar year. Standardbred racing conducted

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1 in Sangamon County shall not be considered races under this

2 subsection (e-1).

3 (e-2) In awarding racing dates for calendar year 2014 and

4 thereafter, the Board shall award thoroughbred racing days to

5 Cook County organization licensees commensurate with these

6 organization licensees' requirement that they shall run at

7 least 1,950 thoroughbred races in the aggregate, so long as 2

8 organization licensees are conducting electronic gaming

9 operations. Additionally, if the organization licensees that

10 run thoroughbred races in Cook County are conducting electronic

11 gaming operations, the Board shall increase the number of

12 thoroughbred races to be run in Cook County in the aggregate to

13 at least the following:

14 (i) 2,050 races in any year following the most recent

15 preceding complete calendar year when the combined

16 adjusted gross receipts of the electronic gaming licensees

17 operating at Cook County race tracks total in excess of

18 $200,000,000, but do not exceed $250,000,000;

19 (ii) 2,125 races in any year following the most recent

20 preceding complete calendar year when the combined

21 adjusted gross receipts of the electronic gaming licensees

22 operating at Cook County race tracks total in excess of

23 $250,000,000, but do not exceed $300,000,000;

24 (iii) 2,200 races in any year following the most recent

25 preceding complete calendar year when the combined

26 adjusted gross receipts of the electronic gaming licensees

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1 operating at Cook County race tracks total in excess of

2 $300,000,000, but do not exceed $350,000,000;

3 (iv) 2,300 races in any year following the most recent

4 preceding complete calendar year when the combined

5 adjusted gross receipts of the electronic gaming licensees

6 operating at Cook County race tracks total in excess of

7 $350,000,000, but do not exceed $400,000,000;

8 (v) 2,375 races in any year following the most recent

9 preceding complete calendar year when the combined

10 adjusted gross receipts of the electronic gaming licensees

11 operating at Cook County race tracks total in excess of

12 $400,000,000, but do not exceed $450,000,000;

13 (vi) 2,450 races in any year following the most recent

14 preceding complete calendar year when the combined

15 adjusted gross receipts of the electronic gaming licensees

16 operating at Cook County race tracks total in excess of

17 $450,000,000, but do not exceed $500,000,000;

18 (vii) 2,550 races in any year following the most recent

19 preceding complete calendar year when the combined

20 adjusted gross receipts of the electronic gaming licensees

21 operating at Cook County race tracks exceeds $500,000,000.

22 In awarding racing dates under this subsection (e-2), the

23 Board shall have the discretion to allocate those thoroughbred

24 racing dates among these Cook County organization licensees.

25 (e-3) In awarding racing dates for calendar year 2014 and

26 thereafter in connection with a race track in Madison County,

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1 the Board shall award racing dates and such organization

2 licensee shall run at least 700 thoroughbred races at the race

3 track in Madison County each year.

4 Notwithstanding Section 7.6 of the Illinois Gambling Act or

5 any provision of this Act other than subsection (e-4.5), for

6 each calendar year for which an electronic gaming licensee

7 located in Madison County requests racing dates resulting in

8 less than 700 live thoroughbred races at its race track

9 facility, the electronic gaming licensee may not conduct

10 electronic gaming for the calendar year of such requested live

11 races.

12 (e-4) Notwithstanding the provisions of Section 7.6 of the

13 Illinois Gambling Act or any provision of this Act other than

14 subsections (e-3) and (e-4.5), for each calendar year for which

15 an electronic gaming licensee requests racing dates for a

16 specific horse breed which results in a number of live races

17 for that specific breed under its organization license that is

18 less than the total number of live races for that specific

19 breed which it conducted in 2011 for standardbred racing and in

20 2009 for thoroughbred racing at its race track facility, the

21 electronic gaming licensee may not conduct electronic gaming

22 for the calendar year of such requested live races.

23 (e-4.5) The Board shall ensure that each organization

24 licensee shall individually run a sufficient number of races

25 per year to qualify for an electronic gaming license under this

26 Act. The General Assembly finds that the minimum live racing

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1 guarantees contained in subsections (e-1), (e-2), and (e-3) are

2 in the best interest of the sport of horse racing, and that

3 such guarantees may only be reduced in the limited

4 circumstances described in this subsection. The Board may

5 decrease the number of racing days without affecting an

6 organization licensee's ability to conduct electronic gaming

7 only if the Board determines, after notice and hearing, that:

8 (i) a decrease is necessary to maintain a sufficient

9 number of betting interests per race to ensure the

10 integrity of racing;

11 (ii) there are unsafe track conditions due to weather

12 or acts of God;

13 (iii) there is an agreement between an organization

14 licensee and the breed association that is applicable to

15 the involved live racing guarantee, such association

16 representing either the largest number of thoroughbred

17 owners and trainers or the largest number of standardbred

18 owners, trainers and drivers who race horses at the

19 involved organization licensee's racing meeting, so long

20 as the agreement does not compromise the integrity of the

21 sport of horse racing; or

22 (iv) the horse population or purse levels are

23 insufficient to provide the number of racing opportunities

24 otherwise required in this Act.

25 In decreasing the number of racing dates in accordance with

26 this subsection, the Board shall hold a hearing and shall

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1 provide the public and all interested parties notice and an

2 opportunity to be heard. The Board shall accept testimony from

3 all interested parties, including any association representing

4 owners, trainers, jockeys, or drivers who will be affected by

5 the decrease in racing dates. The Board shall provide a written

6 explanation of the reasons for the decrease and the Board's

7 findings. The written explanation shall include a listing and

8 content of all communication between any party and any Illinois

9 Racing Board member or staff that does not take place at a

10 public meeting of the Board.

11 (e-5) In reviewing an application for the purpose of

12 granting an organization license consistent with the best

13 interests of the public and the sport of horse racing, the

14 Board shall consider:

15 (1) the character, reputation, experience, and

16 financial integrity of the applicant and of any other

17 separate person that either:

18 (i) controls the applicant, directly or

19 indirectly, or

20 (ii) is controlled, directly or indirectly, by

21 that applicant or by a person who controls, directly or

22 indirectly, that applicant;

23 (2) the applicant's facilities or proposed facilities

24 for conducting horse racing;

25 (3) the total revenue without regard to Section 32.1 to

26 be derived by the State and horsemen from the applicant's

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1 conducting a race meeting;

2 (4) the applicant's good faith affirmative action plan

3 to recruit, train, and upgrade minorities in all employment

4 classifications;

5 (5) the applicant's financial ability to purchase and

6 maintain adequate liability and casualty insurance;

7 (6) the applicant's proposed and prior year's

8 promotional and marketing activities and expenditures of

9 the applicant associated with those activities;

10 (7) an agreement, if any, among organization licensees

11 as provided in subsection (b) of Section 21 of this Act;

12 and

13 (8) the extent to which the applicant exceeds or meets

14 other standards for the issuance of an organization license

15 that the Board shall adopt by rule.

16 In granting organization licenses and allocating dates for

17 horse race meetings, the Board shall have discretion to

18 determine an overall schedule, including required simulcasts

19 of Illinois races by host tracks that will, in its judgment, be

20 conducive to the best interests of the public and the sport of

21 horse racing.

22 (e-10) The Illinois Administrative Procedure Act shall

23 apply to administrative procedures of the Board under this Act

24 for the granting of an organization license, except that (1)

25 notwithstanding the provisions of subsection (b) of Section

26 10-40 of the Illinois Administrative Procedure Act regarding

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1 cross-examination, the Board may prescribe rules limiting the

2 right of an applicant or participant in any proceeding to award

3 an organization license to conduct cross-examination of

4 witnesses at that proceeding where that cross-examination

5 would unduly obstruct the timely award of an organization

6 license under subsection (e) of Section 20 of this Act; (2) the

7 provisions of Section 10-45 of the Illinois Administrative

8 Procedure Act regarding proposals for decision are excluded

9 under this Act; (3) notwithstanding the provisions of

10 subsection (a) of Section 10-60 of the Illinois Administrative

11 Procedure Act regarding ex parte communications, the Board may

12 prescribe rules allowing ex parte communications with

13 applicants or participants in a proceeding to award an

14 organization license where conducting those communications

15 would be in the best interest of racing, provided all those

16 communications are made part of the record of that proceeding

17 pursuant to subsection (c) of Section 10-60 of the Illinois

18 Administrative Procedure Act; (4) the provisions of Section 14a

19 of this Act and the rules of the Board promulgated under that

20 Section shall apply instead of the provisions of Article 10 of

21 the Illinois Administrative Procedure Act regarding

22 administrative law judges; and (5) the provisions of subsection

23 (d) of Section 10-65 of the Illinois Administrative Procedure

24 Act that prevent summary suspension of a license pending

25 revocation or other action shall not apply.

26 (f) The Board may allot racing dates to an organization

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1 licensee for more than one calendar year but for no more than 3

2 successive calendar years in advance, provided that the Board

3 shall review such allotment for more than one calendar year

4 prior to each year for which such allotment has been made. The

5 granting of an organization license to a person constitutes a

6 privilege to conduct a horse race meeting under the provisions

7 of this Act, and no person granted an organization license

8 shall be deemed to have a vested interest, property right, or

9 future expectation to receive an organization license in any

10 subsequent year as a result of the granting of an organization

11 license. Organization licenses shall be subject to revocation

12 if the organization licensee has violated any provision of this

13 Act or the rules and regulations promulgated under this Act or

14 has been convicted of a crime or has failed to disclose or has

15 stated falsely any information called for in the application

16 for an organization license. Any organization license

17 revocation proceeding shall be in accordance with Section 16

18 regarding suspension and revocation of occupation licenses.

19 (f-5) If, (i) an applicant does not file an acceptance of

20 the racing dates awarded by the Board as required under part

21 (1) of subsection (h) of this Section 20, or (ii) an

22 organization licensee has its license suspended or revoked

23 under this Act, the Board, upon conducting an emergency hearing

24 as provided for in this Act, may reaward on an emergency basis

25 pursuant to rules established by the Board, racing dates not

26 accepted or the racing dates associated with any suspension or

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1 revocation period to one or more organization licensees, new

2 applicants, or any combination thereof, upon terms and

3 conditions that the Board determines are in the best interest

4 of racing, provided, the organization licensees or new

5 applicants receiving the awarded racing dates file an

6 acceptance of those reawarded racing dates as required under

7 paragraph (1) of subsection (h) of this Section 20 and comply

8 with the other provisions of this Act. The Illinois

9 Administrative Procedure Act shall not apply to the

10 administrative procedures of the Board in conducting the

11 emergency hearing and the reallocation of racing dates on an

12 emergency basis.

13 (g) (Blank).

14 (h) The Board shall send the applicant a copy of its

15 formally executed order by certified mail addressed to the

16 applicant at the address stated in his application, which

17 notice shall be mailed within 5 days of the date the formal

18 order is executed.

19 Each applicant notified shall, within 10 days after receipt

20 of the final executed order of the Board awarding racing dates:

21 (1) file with the Board an acceptance of such award in

22 the form prescribed by the Board;

23 (2) pay to the Board an additional amount equal to $110

24 for each racing date awarded; and

25 (3) file with the Board the bonds required in Sections

26 21 and 25 at least 20 days prior to the first day of each

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1 race meeting.

2 Upon compliance with the provisions of paragraphs (1), (2), and

3 (3) of this subsection (h), the applicant shall be issued an

4 organization license.

5 If any applicant fails to comply with this Section or fails

6 to pay the organization license fees herein provided, no

7 organization license shall be issued to such applicant.

8 (Source: P.A. 97-333, eff. 8-12-11.)

9 (230 ILCS 5/21) (from Ch. 8, par. 37-21)

10 Sec. 21. (a) Applications for organization licenses must be

11 filed with the Board at a time and place prescribed by the

12 rules and regulations of the Board. The Board shall examine the

13 applications within 21 days after the date allowed for filing

14 with respect to their conformity with this Act and such rules

15 and regulations as may be prescribed by the Board. If any

16 application does not comply with this Act or the rules and

17 regulations prescribed by the Board, such application may be

18 rejected and an organization license refused to the applicant,

19 or the Board may, within 21 days of the receipt of such

20 application, advise the applicant of the deficiencies of the

21 application under the Act or the rules and regulations of the

22 Board, and require the submittal of an amended application

23 within a reasonable time determined by the Board; and upon

24 submittal of the amended application by the applicant, the

25 Board may consider the application consistent with the process

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1 described in subsection (e-5) of Section 20 of this Act. If it

2 is found to be in compliance with this Act and the rules and

3 regulations of the Board, the Board may then issue an

4 organization license to such applicant.

5 (b) The Board may exercise discretion in granting racing

6 dates to qualified applicants different from those requested by

7 the applicants in their applications. However, if all eligible

8 applicants for organization licenses whose tracks are located

9 within 100 miles of each other execute and submit to the Board

10 a written agreement among such applicants as to the award of

11 racing dates, including where applicable racing programs, for

12 up to 3 consecutive years, then subject to annual review of

13 each applicant's compliance with Board rules and regulations,

14 provisions of this Act and conditions contained in annual dates

15 orders issued by the Board, the Board may grant such dates and

16 programs to such applicants as so agreed by them if the Board

17 determines that the grant of these racing dates is in the best

18 interests of racing. The Board shall treat any such agreement

19 as the agreement signatories' joint and several application for

20 racing dates during the term of the agreement.

21 (c) Where 2 or more applicants propose to conduct horse

22 race meetings within 35 miles of each other, as certified to

23 the Board under Section 19 (a) (1) of this Act, on conflicting

24 dates, the Board may determine and grant the number of racing

25 days to be awarded to the several applicants in accordance with

26 the provisions of subsection (e-5) of Section 20 of this Act.

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1 (d) (Blank).

2 (e) Prior to the issuance of an organization license, the

3 applicant shall file with the Board a bond payable to the State

4 of Illinois in the sum of $200,000, executed by the applicant

5 and a surety company or companies authorized to do business in

6 this State, and conditioned upon the payment by the

7 organization licensee of all taxes due under Section 27, other

8 monies due and payable under this Act, all purses due and

9 payable, and that the organization licensee will upon

10 presentation of the winning ticket or tickets distribute all

11 sums due to the patrons of pari-mutuel pools. Beginning on the

12 date when any organization licensee begins conducting

13 electronic gaming pursuant to an electronic gaming license

14 issued under the Illinois Gambling Act, the amount of the bond

15 required under this subsection (e) shall be $500,000.

16 (f) Each organization license shall specify the person to

17 whom it is issued, the dates upon which horse racing is

18 permitted, and the location, place, track, or enclosure where

19 the horse race meeting is to be held.

20 (g) Any person who owns one or more race tracks within the

21 State may seek, in its own name, a separate organization

22 license for each race track.

23 (h) All racing conducted under such organization license is

24 subject to this Act and to the rules and regulations from time

25 to time prescribed by the Board, and every such organization

26 license issued by the Board shall contain a recital to that

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1 effect.

2 (i) Each such organization licensee may provide that at

3 least one race per day may be devoted to the racing of quarter

4 horses, appaloosas, arabians, or paints.

5 (j) In acting on applications for organization licenses,

6 the Board shall give weight to an organization license which

7 has implemented a good faith affirmative action effort to

8 recruit, train and upgrade minorities in all classifications

9 within the organization license.

10 (Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)

11 (230 ILCS 5/24) (from Ch. 8, par. 37-24)

12 Sec. 24. (a) No license shall be issued to or held by an

13 organization licensee unless all of its officers, directors,

14 and holders of ownership interests of at least 5% are first

15 approved by the Board. The Board shall not give approval of an

16 organization license application to any person who has been

17 convicted of or is under an indictment for a crime of moral

18 turpitude or has violated any provision of the racing law of

19 this State or any rules of the Board.

20 (b) An organization licensee must notify the Board within

21 10 days of any change in the holders of a direct or indirect

22 interest in the ownership of the organization licensee. The

23 Board may, after hearing, revoke the organization license of

24 any person who registers on its books or knowingly permits a

25 direct or indirect interest in the ownership of that person

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1 without notifying the Board of the name of the holder in

2 interest within this period.

3 (c) In addition to the provisions of subsection (a) of this

4 Section, no person shall be granted an organization license if

5 any public official of the State or member of his or her family

6 holds any ownership or financial interest, directly or

7 indirectly, in the person.

8 (d) No person which has been granted an organization

9 license to hold a race meeting shall give to any public

10 official or member of his family, directly or indirectly, for

11 or without consideration, any interest in the person. The Board

12 shall, after hearing, revoke the organization license granted

13 to a person which has violated this subsection.

14 (e) (Blank).

15 (f) No organization licensee or concessionaire or officer,

16 director or holder or controller of 5% or more legal or

17 beneficial interest in any organization licensee or concession

18 shall make any sort of gift or contributionthat is prohibited

19 under Article 10 of the State Officials and Employees Ethics

20 Act ~~of any kind~~or pay or give any money or other thing of value

21 to any person who is a public official, or a candidate or

22 nominee for public office if that payment or gift is prohibited

23 under Article 10 of the State Officials and Employees Ethics

24 Act.

25 (Source: P.A. 89-16, eff. 5-30-95.)

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1 (230 ILCS 5/25) (from Ch. 8, par. 37-25)

2 Sec. 25. Admission charge; bond; fine.

3 (a) There shall be paid to the Board at such time or times

4 as it shall prescribe, the sum of fifteen cents (15�) for each

5 person entering the grounds or enclosure of each organization

6 licensee and inter-track wagering licensee upon a ticket of

7 admission except as provided in subsection (g) of Section 27 of

8 this Act. If tickets are issued for more than one day then the

9 sum of fifteen cents (15�) shall be paid for each person using

10 such ticket on each day that the same shall be used. Provided,

11 however, that no charge shall be made on tickets of admission

12 issued to and in the name of directors, officers, agents or

13 employees of the organization licensee, or inter-track

14 wagering licensee, or to owners, trainers, jockeys, drivers and

15 their employees or to any person or persons entering the

16 grounds or enclosure for the transaction of business in

17 connection with such race meeting. The organization licensee or

18 inter-track wagering licensee may, if it desires, collect such

19 amount from each ticket holder in addition to the amount or

20 amounts charged for such ticket of admission.Beginning on the

21 date when any organization licensee begins conducting

22 electronic gaming pursuant to an electronic gaming license

23 issued under the Illinois Gambling Act, the admission charge

24 imposed by this subsection (a) shall be 40 cents for each

25 person entering the grounds or enclosure of each organization

26 licensee and inter-track wagering licensee upon a ticket of

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1 admission, and if such tickets are issued for more than one

2 day, 40 cents shall be paid for each person using such ticket

3 on each day that the same shall be used.

4 (b) Accurate records and books shall at all times be kept

5 and maintained by the organization licensees and inter-track

6 wagering licensees showing the admission tickets issued and

7 used on each racing day and the attendance thereat of each

8 horse racing meeting. The Board or its duly authorized

9 representative or representatives shall at all reasonable

10 times have access to the admission records of any organization

11 licensee and inter-track wagering licensee for the purpose of

12 examining and checking the same and ascertaining whether or not

13 the proper amount has been or is being paid the State of

14 Illinois as herein provided. The Board shall also require,

15 before issuing any license, that the licensee shall execute and

16 deliver to it a bond, payable to the State of Illinois, in such

17 sum as it shall determine, not, however, in excess of fifty

18 thousand dollars ($50,000), with a surety or sureties to be

19 approved by it, conditioned for the payment of all sums due and

20 payable or collected by it under this Section upon admission

21 fees received for any particular racing meetings. The Board may

22 also from time to time require sworn statements of the number

23 or numbers of such admissions and may prescribe blanks upon

24 which such reports shall be made. Any organization licensee or

25 inter-track wagering licensee failing or refusing to pay the

26 amount found to be due as herein provided, shall be deemed

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1 guilty of a business offense and upon conviction shall be

2 punished by a fine of not more than five thousand dollars

3 ($5,000) in addition to the amount due from such organization

4 licensee or inter-track wagering licensee as herein provided.

5 All fines paid into court by an organization licensee or

6 inter-track wagering licensee found guilty of violating this

7 Section shall be transmitted and paid over by the clerk of the

8 court to the Board. Beginning on the date when any organization

9 licensee begins conducting electronic gaming pursuant to an

10 electronic gaming license issued under the Illinois Gambling

11 Act, any fine imposed pursuant to this subsection (b) shall not

12 exceed $10,000.

13 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)

14 (230 ILCS 5/26) (from Ch. 8, par. 37-26)

15 Sec. 26. Wagering.

16 (a) Any licensee may conduct and supervise the pari-mutuel

17 system of wagering, as defined in Section 3.12 of this Act, on

18 horse races conducted by an Illinois organization licensee or

19 conducted at a racetrack located in another state or country

20 ~~and televised in Illinois~~ in accordance with subsection (g) of

21 Section 26 of this Act. Subject to the prior consent of the

22 Board, licensees may supplement any pari-mutuel pool in order

23 to guarantee a minimum distribution. Such pari-mutuel method of

24 wagering shall not, under any circumstances if conducted under

25 the provisions of this Act, be held or construed to be

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1 unlawful, other statutes of this State to the contrary

2 notwithstanding. Subject to rules for advance wagering

3 promulgated by the Board, any licensee may accept wagers in

4 advance of the day of the race wagered upon occurs.

5 (b) Except for those gaming activities for which a license

6 is obtained and authorized under the Illinois Lottery Act, the

7 Charitable Games Act, the Raffles Act, or the Illinois Gambling

8 Act, no ~~No~~other method of betting, pool making, wagering or

9 gambling shall be used or permitted by the licensee. Each

10 licensee may retain, subject to the payment of all applicable

11 taxes and purses, an amount not to exceed 17% of all money

12 wagered under subsection (a) of this Section, except as may

13 otherwise be permitted under this Act.

14 (b-5) An individual may place a wager under the pari-mutuel

15 system from any licensed location authorized under this Act

16 provided that wager is electronically recorded in the manner

17 described in Section 3.12 of this Act. Any wager made

18 electronically by an individual while physically on the

19 premises of a licensee shall be deemed to have been made at the

20 premises of that licensee.

21 (c) Until January 1, 2000, the sum held by any licensee for

22 payment of outstanding pari-mutuel tickets, if unclaimed prior

23 to December 31 of the next year, shall be retained by the

24 licensee for payment of such tickets until that date. Within 10

25 days thereafter, the balance of such sum remaining unclaimed,

26 less any uncashed supplements contributed by such licensee for

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1 the purpose of guaranteeing minimum distributions of any

2 pari-mutuel pool, shall be paid to the Illinois Veterans'

3 Rehabilitation Fund of the State treasury, except as provided

4 in subsection (g) of Section 27 of this Act.

5 (c-5) Beginning January 1, 2000, the sum held by any

6 licensee for payment of outstanding pari-mutuel tickets, if

7 unclaimed prior to December 31 of the next year, shall be

8 retained by the licensee for payment of such tickets until that

9 date. Within 10 days thereafter, the balance of such sum

10 remaining unclaimed, less any uncashed supplements contributed

11 by such licensee for the purpose of guaranteeing minimum

12 distributions of any pari-mutuel pool, shall be evenly

13 distributed to the purse account of the organization licensee

14 and the organization licensee.

15 (d) A pari-mutuel ticket shall be honored until December 31

16 of the next calendar year, and the licensee shall pay the same

17 and may charge the amount thereof against unpaid money

18 similarly accumulated on account of pari-mutuel tickets not

19 presented for payment.

20 (e) No licensee shall knowingly permit any minor, other

21 than an employee of such licensee or an owner, trainer, jockey,

22 driver, or employee thereof, to be admitted during a racing

23 program unless accompanied by a parent or guardian, or any

24 minor to be a patron of the pari-mutuel system of wagering

25 conducted or supervised by it. The admission of any

26 unaccompanied minor, other than an employee of the licensee or

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1 an owner, trainer, jockey, driver, or employee thereof at a

2 race track is a Class C misdemeanor.

3 (f) Notwithstanding the other provisions of this Act, an

4 organization licensee may contract with an entity in another

5 state or country to permit any legal wagering entity in another

6 state or country to accept wagers solely within such other

7 state or country on races conducted by the organization

8 licensee in this State. Beginning January 1, 2000, these wagers

9 shall not be subject to State taxation. Until January 1, 2000,

10 when the out-of-State entity conducts a pari-mutuel pool

11 separate from the organization licensee, a privilege tax equal

12 to 7 1/2% of all monies received by the organization licensee

13 from entities in other states or countries pursuant to such

14 contracts is imposed on the organization licensee, and such

15 privilege tax shall be remitted to the Department of Revenue

16 within 48 hours of receipt of the moneys from the simulcast.

17 When the out-of-State entity conducts a combined pari-mutuel

18 pool with the organization licensee, the tax shall be 10% of

19 all monies received by the organization licensee with 25% of

20 the receipts from this 10% tax to be distributed to the county

21 in which the race was conducted.

22 An organization licensee may permit one or more of its

23 races to be utilized for pari-mutuel wagering at one or more

24 locations in other states and may transmit audio and visual

25 signals of races the organization licensee conducts to one or

26 more locations outside the State or country and may also permit

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1 pari-mutuel pools in other states or countries to be combined

2 with its gross or net wagering pools or with wagering pools

3 established by other states.

4 (g) A host track may accept interstate simulcast wagers on

5 horse races conducted in other states or countries and shall

6 control the number of signals and types of breeds of racing in

7 its simulcast program, subject to the disapproval of the Board.

8 The Board may prohibit a simulcast program only if it finds

9 that the simulcast program is clearly adverse to the integrity

10 of racing. The host track simulcast program shall include the

11 signal of live racing of all organization licensees. All

12 non-host licensees and advance deposit wagering licensees

13 shall carry the signal of and accept wagers on live racing of

14 all organization licensees. Advance deposit wagering licensees

15 shall not be permitted to accept out-of-state wagers on any

16 Illinois signal provided pursuant to this Section without the

17 approval and consent of the organization licensee providing the

18 signal. Non-host licensees may carry the host track simulcast

19 program and shall accept wagers on all races included as part

20 of the simulcast program upon which wagering is permitted. All

21 organization licensees shall provide their live signal to all

22 advance deposit wagering licensees for a simulcast commission

23 fee not to exceed 6% of the advance deposit wagering licensee's

24 Illinois handle on the organization licensee's signal without

25 prior approval by the Board. The Board may adopt rules under

26 which it may permit simulcast commission fees in excess of 6%.

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1 The Board shall adopt rules limiting the interstate commission

2 fees charged to an advance deposit wagering licensee. The Board

3 shall adopt rules regarding advance deposit wagering on

4 interstate simulcast races that shall reflect, among other

5 things, the General Assembly's desire to maximize revenues to

6 the State, horsemen purses, and organizational licensees.

7 However, organization licensees providing live signals

8 pursuant to the requirements of this subsection (g) may

9 petition the Board to withhold their live signals from an

10 advance deposit wagering licensee if the organization licensee

11 discovers and the Board finds reputable or credible information

12 that the advance deposit wagering licensee is under

13 investigation by another state or federal governmental agency,

14 the advance deposit wagering licensee's license has been

15 suspended in another state, or the advance deposit wagering

16 licensee's license is in revocation proceedings in another

17 state. The organization licensee's provision of their live

18 signal to an advance deposit wagering licensee under this

19 subsection (g) pertains to wagers placed from within Illinois.

20 Advance deposit wagering licensees may place advance deposit

21 wagering terminals at wagering facilities as a convenience to

22 customers. The advance deposit wagering licensee shall not

23 charge or collect any fee from purses for the placement of the

24 advance deposit wagering terminals. The costs and expenses of

25 the host track and non-host licensees associated with

26 interstate simulcast wagering, other than the interstate

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1 commission fee, shall be borne by the host track and all

2 non-host licensees incurring these costs. The interstate

3 commission fee shall not exceed 5% of Illinois handle on the

4 interstate simulcast race or races without prior approval of

5 the Board. The Board shall promulgate rules under which it may

6 permit interstate commission fees in excess of 5%. The

7 interstate commission fee and other fees charged by the sending

8 racetrack, including, but not limited to, satellite decoder

9 fees, shall be uniformly applied to the host track and all

10 non-host licensees.

11 Notwithstanding any other provision of this Act, until

12 January 1, 2013, an organization licensee may maintain a system

13 whereby advance deposit wagering may take place or an

14 organization licensee, with the consent of the horsemen

15 association representing the largest number of owners,

16 trainers, jockeys, or standardbred drivers who race horses at

17 that organization licensee's racing meeting, may contract with

18 another person to carry out a system of advance deposit

19 wagering. Such consent may not be unreasonably withheld. All

20 advance deposit wagers placed from within Illinois must be

21 placed through a Board-approved advance deposit wagering

22 licensee; no other entity may accept an advance deposit wager

23 from a person within Illinois. All advance deposit wagering is

24 subject to any rules adopted by the Board. The Board may adopt

25 rules necessary to regulate advance deposit wagering through

26 the use of emergency rulemaking in accordance with Section 5-45

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1 of the Illinois Administrative Procedure Act. The General

2 Assembly finds that the adoption of rules to regulate advance

3 deposit wagering is deemed an emergency and necessary for the

4 public interest, safety, and welfare. An advance deposit

5 wagering licensee may retain all moneys as agreed to by

6 contract with an organization licensee. Any moneys retained by

7 the organization licensee from advance deposit wagering, not

8 including moneys retained by the advance deposit wagering

9 licensee, shall be paid 50% to the organization licensee's

10 purse account and 50% to the organization licensee. If more

11 than one breed races at the same race track facility, then the

12 50% of the moneys to be paid to an organization licensee's

13 purse account shall be allocated among all organization

14 licensees' purse accounts operating at that race track facility

15 proportionately based on the actual number of host days that

16 the Board grants to that breed at that race track facility in

17 the current calendar year. To the extent any fees from advance

18 deposit wagering conducted in Illinois for wagers in Illinois

19 or other states have been placed in escrow or otherwise

20 withheld from wagers pending a determination of the legality of

21 advance deposit wagering, no action shall be brought to declare

22 such wagers or the disbursement of any fees previously escrowed

23 illegal.

24 (1) Between the hours of 6:30 a.m. and 6:30 p.m. an

25 intertrack wagering licensee other than the host track may

26 supplement the host track simulcast program with

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1 additional simulcast races or race programs, provided that

2 between January 1 and the third Friday in February of any

3 year, inclusive, if no live thoroughbred racing is

4 occurring in Illinois during this period, only

5 thoroughbred races may be used for supplemental interstate

6 simulcast purposes. The Board shall withhold approval for a

7 supplemental interstate simulcast only if it finds that the

8 simulcast is clearly adverse to the integrity of racing. A

9 supplemental interstate simulcast may be transmitted from

10 an intertrack wagering licensee to its affiliated non-host

11 licensees. The interstate commission fee for a

12 supplemental interstate simulcast shall be paid by the

13 non-host licensee and its affiliated non-host licensees

14 receiving the simulcast.

15 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an

16 intertrack wagering licensee other than the host track may

17 receive supplemental interstate simulcasts only with the

18 consent of the host track, except when the Board finds that

19 the simulcast is clearly adverse to the integrity of

20 racing. Consent granted under this paragraph (2) to any

21 intertrack wagering licensee shall be deemed consent to all

22 non-host licensees. The interstate commission fee for the

23 supplemental interstate simulcast shall be paid by all

24 participating non-host licensees.

25 (3) Each licensee conducting interstate simulcast

26 wagering may retain, subject to the payment of all

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1 applicable taxes and the purses, an amount not to exceed

2 17% of all money wagered. If any licensee conducts the

3 pari-mutuel system wagering on races conducted at

4 racetracks in another state or country, each such race or

5 race program shall be considered a separate racing day for

6 the purpose of determining the daily handle and computing

7 the privilege tax of that daily handle as provided in

8 subsection (a) of Section 27. Until January 1, 2000, from

9 the sums permitted to be retained pursuant to this

10 subsection, each intertrack wagering location licensee

11 shall pay 1% of the pari-mutuel handle wagered on simulcast

12 wagering to the Horse Racing Tax Allocation Fund, subject

13 to the provisions of subparagraph (B) of paragraph (11) of

14 subsection (h) of Section 26 of this Act.

15 (4) A licensee who receives an interstate simulcast may

16 combine its gross or net pools with pools at the sending

17 racetracks pursuant to rules established by the Board. All

18 licensees combining their gross pools at a sending

19 racetrack shall adopt the take-out percentages of the

20 sending racetrack. A licensee may also establish a separate

21 pool and takeout structure for wagering purposes on races

22 conducted at race tracks outside of the State of Illinois.

23 The licensee may permit pari-mutuel wagers placed in other

24 states or countries to be combined with its gross or net

25 wagering pools or other wagering pools.

26 (5) After the payment of the interstate commission fee

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1 (except for the interstate commission fee on a supplemental

2 interstate simulcast, which shall be paid by the host track

3 and by each non-host licensee through the host-track) and

4 all applicable State and local taxes, except as provided in

5 subsection (g) of Section 27 of this Act, the remainder of

6 moneys retained from simulcast wagering pursuant to this

7 subsection (g), and Section 26.2 shall be divided as

8 follows:

9 (A) For interstate simulcast wagers made at a host

10 track, 50% to the host track and 50% to purses at the

11 host track.

12 (B) For wagers placed on interstate simulcast

13 races, supplemental simulcasts as defined in

14 subparagraphs (1) and (2), and separately pooled races

15 conducted outside of the State of Illinois made at a

16 non-host licensee, 25% to the host track, 25% to the

17 non-host licensee, and 50% to the purses at the host

18 track.

19 (6) Notwithstanding any provision in this Act to the

20 contrary, non-host licensees who derive their licenses

21 from a track located in a county with a population in

22 excess of 230,000 and that borders the Mississippi River

23 may receive supplemental interstate simulcast races at all

24 times subject to Board approval, which shall be withheld

25 only upon a finding that a supplemental interstate

26 simulcast is clearly adverse to the integrity of racing.

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1 (7) Notwithstanding any provision of this Act to the

2 contrary, after payment of all applicable State and local

3 taxes and interstate commission fees, non-host licensees

4 who derive their licenses from a track located in a county

5 with a population in excess of 230,000 and that borders the

6 Mississippi River shall retain 50% of the retention from

7 interstate simulcast wagers and shall pay 50% to purses at

8 the track from which the non-host licensee derives its

9 license as follows:

10 (A) Between January 1 and the third Friday in

11 February, inclusive, if no live thoroughbred racing is

12 occurring in Illinois during this period, when the

13 interstate simulcast is a standardbred race, the purse

14 share to its standardbred purse account;

15 (B) Between January 1 and the third Friday in

16 February, inclusive, if no live thoroughbred racing is

17 occurring in Illinois during this period, and the

18 interstate simulcast is a thoroughbred race, the purse

19 share to its interstate simulcast purse pool to be

20 distributed under paragraph (10) of this subsection

21 (g);

22 (C) Between January 1 and the third Friday in

23 February, inclusive, if live thoroughbred racing is

24 occurring in Illinois, between 6:30 a.m. and 6:30 p.m.

25 the purse share from wagers made during this time

26 period to its thoroughbred purse account and between

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1 6:30 p.m. and 6:30 a.m. the purse share from wagers

2 made during this time period to its standardbred purse

3 accounts;

4 (D) Between the third Saturday in February and

5 December 31, when the interstate simulcast occurs

6 between the hours of 6:30 a.m. and 6:30 p.m., the purse

7 share to its thoroughbred purse account;

8 (E) Between the third Saturday in February and

9 December 31, when the interstate simulcast occurs

10 between the hours of 6:30 p.m. and 6:30 a.m., the purse

11 share to its standardbred purse account.

12 (7.1) Notwithstanding any other provision of this Act

13 to the contrary, if no standardbred racing is conducted at

14 a racetrack located in Madison County during any calendar

15 year beginning on or after January 1, 2002, all moneys

16 derived by that racetrack from simulcast wagering and

17 inter-track wagering that (1) are to be used for purses and

18 (2) are generated between the hours of 6:30 p.m. and 6:30

19 a.m. during that calendar year shall be paid as follows:

20 (A) If the licensee that conducts horse racing at

21 that racetrack requests from the Board at least as many

22 racing dates as were conducted in calendar year 2000,

23 80% shall be paid to its thoroughbred purse account;

24 and

25 (B) Twenty percent shall be deposited into the

26 Illinois Colt Stakes Purse Distribution Fund and shall

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1 be paid to purses for standardbred races for Illinois

2 conceived and foaled horses conducted at any county

3 fairgrounds. The moneys deposited into the Fund

4 pursuant to this subparagraph (B) shall be deposited

5 within 2 weeks after the day they were generated, shall

6 be in addition to and not in lieu of any other moneys

7 paid to standardbred purses under this Act, and shall

8 not be commingled with other moneys paid into that

9 Fund. The moneys deposited pursuant to this

10 subparagraph (B) shall be allocated as provided by the

11 Department of Agriculture, with the advice and

12 assistance of the Illinois Standardbred Breeders Fund

13 Advisory Board.

14 (7.2) Notwithstanding any other provision of this Act

15 to the contrary, if no thoroughbred racing is conducted at

16 a racetrack located in Madison County during any calendar

17 year beginning on or after January 1, 2002, all moneys

18 derived by that racetrack from simulcast wagering and

19 inter-track wagering that (1) are to be used for purses and

20 (2) are generated between the hours of 6:30 a.m. and 6:30

21 p.m. during that calendar year shall be deposited as

22 follows:

23 (A) If the licensee that conducts horse racing at

24 that racetrack requests from the Board at least as many

25 racing dates as were conducted in calendar year 2000,

26 80% shall be deposited into its standardbred purse

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1 account; and

2 (B) Twenty percent shall be deposited into the

3 Illinois Colt Stakes Purse Distribution Fund. Moneys

4 deposited into the Illinois Colt Stakes Purse

5 Distribution Fund pursuant to this subparagraph (B)

6 shall be paid to Illinois conceived and foaled

7 thoroughbred breeders' programs and to thoroughbred

8 purses for races conducted at any county fairgrounds

9 for Illinois conceived and foaled horses at the

10 discretion of the Department of Agriculture, with the

11 advice and assistance of the Illinois Thoroughbred

12 Breeders Fund Advisory Board. The moneys deposited

13 into the Illinois Colt Stakes Purse Distribution Fund

14 pursuant to this subparagraph (B) shall be deposited

15 within 2 weeks after the day they were generated, shall

16 be in addition to and not in lieu of any other moneys

17 paid to thoroughbred purses under this Act, and shall

18 not be commingled with other moneys deposited into that

19 Fund.

20 (7.3) If no live standardbred racing is conducted at a

21 racetrack located in Madison County in calendar year 2000

22 or 2001, an organization licensee who is licensed to

23 conduct horse racing at that racetrack shall, before

24 January 1, 2002, pay all moneys derived from simulcast

25 wagering and inter-track wagering in calendar years 2000

26 and 2001 and paid into the licensee's standardbred purse

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1 account as follows:

2 (A) Eighty percent to that licensee's thoroughbred

3 purse account to be used for thoroughbred purses; and

4 (B) Twenty percent to the Illinois Colt Stakes

5 Purse Distribution Fund.

6 Failure to make the payment to the Illinois Colt Stakes

7 Purse Distribution Fund before January 1, 2002 shall result

8 in the immediate revocation of the licensee's organization

9 license, inter-track wagering license, and inter-track

10 wagering location license.

11 Moneys paid into the Illinois Colt Stakes Purse

12 Distribution Fund pursuant to this paragraph (7.3) shall be

13 paid to purses for standardbred races for Illinois

14 conceived and foaled horses conducted at any county

15 fairgrounds. Moneys paid into the Illinois Colt Stakes

16 Purse Distribution Fund pursuant to this paragraph (7.3)

17 shall be used as determined by the Department of

18 Agriculture, with the advice and assistance of the Illinois

19 Standardbred Breeders Fund Advisory Board, shall be in

20 addition to and not in lieu of any other moneys paid to

21 standardbred purses under this Act, and shall not be

22 commingled with any other moneys paid into that Fund.

23 (7.4) If live standardbred racing is conducted at a

24 racetrack located in Madison County at any time in calendar

25 year 2001 before the payment required under paragraph (7.3)

26 has been made, the organization licensee who is licensed to

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1 conduct racing at that racetrack shall pay all moneys

2 derived by that racetrack from simulcast wagering and

3 inter-track wagering during calendar years 2000 and 2001

4 that (1) are to be used for purses and (2) are generated

5 between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or

6 2001 to the standardbred purse account at that racetrack to

7 be used for standardbred purses.

8 (8) Notwithstanding any provision in this Act to the

9 contrary, an organization licensee from a track located in

10 a county with a population in excess of 230,000 and that

11 borders the Mississippi River and its affiliated non-host

12 licensees shall not be entitled to share in any retention

13 generated on racing, inter-track wagering, or simulcast

14 wagering at any other Illinois wagering facility.

15 (8.1) Notwithstanding any provisions in this Act to the

16 contrary, if 2 organization licensees are conducting

17 standardbred race meetings concurrently between the hours

18 of 6:30 p.m. and 6:30 a.m., after payment of all applicable

19 State and local taxes and interstate commission fees, the

20 remainder of the amount retained from simulcast wagering

21 otherwise attributable to the host track and to host track

22 purses shall be split daily between the 2 organization

23 licensees and the purses at the tracks of the 2

24 organization licensees, respectively, based on each

25 organization licensee's share of the total live handle for

26 that day, provided that this provision shall not apply to

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1 any non-host licensee that derives its license from a track

2 located in a county with a population in excess of 230,000

3 and that borders the Mississippi River.

4 (9) (Blank).

5 (10) (Blank).

6 (11) (Blank).

7 (12) The Board shall have authority to compel all host

8 tracks to receive the simulcast of any or all races

9 conducted at the Springfield or DuQuoin State fairgrounds

10 and include all such races as part of their simulcast

11 programs.

12 (13) Notwithstanding any other provision of this Act,

13 in the event that the total Illinois pari-mutuel handle on

14 Illinois horse races at all wagering facilities in any

15 calendar year is less than 75% of the total Illinois

16 pari-mutuel handle on Illinois horse races at all such

17 wagering facilities for calendar year 1994, then each

18 wagering facility that has an annual total Illinois

19 pari-mutuel handle on Illinois horse races that is less

20 than 75% of the total Illinois pari-mutuel handle on

21 Illinois horse races at such wagering facility for calendar

22 year 1994, shall be permitted to receive, from any amount

23 otherwise payable to the purse account at the race track

24 with which the wagering facility is affiliated in the

25 succeeding calendar year, an amount equal to 2% of the

26 differential in total Illinois pari-mutuel handle on

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1 Illinois horse races at the wagering facility between that

2 calendar year in question and 1994 provided, however, that

3 a wagering facility shall not be entitled to any such

4 payment until the Board certifies in writing to the

5 wagering facility the amount to which the wagering facility

6 is entitled and a schedule for payment of the amount to the

7 wagering facility, based on: (i) the racing dates awarded

8 to the race track affiliated with the wagering facility

9 during the succeeding year; (ii) the sums available or

10 anticipated to be available in the purse account of the

11 race track affiliated with the wagering facility for purses

12 during the succeeding year; and (iii) the need to ensure

13 reasonable purse levels during the payment period. The

14 Board's certification shall be provided no later than

15 January 31 of the succeeding year. In the event a wagering

16 facility entitled to a payment under this paragraph (13) is

17 affiliated with a race track that maintains purse accounts

18 for both standardbred and thoroughbred racing, the amount

19 to be paid to the wagering facility shall be divided

20 between each purse account pro rata, based on the amount of

21 Illinois handle on Illinois standardbred and thoroughbred

22 racing respectively at the wagering facility during the

23 previous calendar year. Annually, the General Assembly

24 shall appropriate sufficient funds from the General

25 Revenue Fund to the Department of Agriculture for payment

26 into the thoroughbred and standardbred horse racing purse

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1 accounts at Illinois pari-mutuel tracks. The amount paid to

2 each purse account shall be the amount certified by the

3 Illinois Racing Board in January to be transferred from

4 each account to each eligible racing facility in accordance

5 with the provisions of this Section. Beginning in the

6 calendar year in which an organization licensee that is

7 eligible to receive payment under this paragraph (13)

8 begins to receive funds from electronic gaming, the amount

9 of the payment due to all wagering facilities licensed

10 under that organization licensee under this paragraph (13)

11 shall be the amount certified by the Board in January of

12 that year. An organization licensee and its related

13 wagering facilities shall no longer be able to receive

14 payments under this paragraph (13) beginning in the year

15 subsequent to the first year in which the organization

16 licensee begins to receive funds from electronic gaming.

17 (h) The Board may approve and license the conduct of

18 inter-track wagering and simulcast wagering by inter-track

19 wagering licensees and inter-track wagering location licensees

20 subject to the following terms and conditions:

21 (1) Any person licensed to conduct a race meeting (i)

22 at a track where 60 or more days of racing were conducted

23 during the immediately preceding calendar year or where

24 over the 5 immediately preceding calendar years an average

25 of 30 or more days of racing were conducted annually may be

26 issued an inter-track wagering license; (ii) at a track

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1 located in a county that is bounded by the Mississippi

2 River, which has a population of less than 150,000

3 according to the 1990 decennial census, and an average of

4 at least 60 days of racing per year between 1985 and 1993

5 may be issued an inter-track wagering license; or (iii) at

6 a track located in Madison County that conducted at least

7 100 days of live racing during the immediately preceding

8 calendar year may be issued an inter-track wagering

9 license, unless a lesser schedule of live racing is the

10 result of (A) weather, unsafe track conditions, or other

11 acts of God; (B) an agreement between the organization

12 licensee and the associations representing the largest

13 number of owners, trainers, jockeys, or standardbred

14 drivers who race horses at that organization licensee's

15 racing meeting; or (C) a finding by the Board of

16 extraordinary circumstances and that it was in the best

17 interest of the public and the sport to conduct fewer than

18 100 days of live racing. Any such person having operating

19 control of the racing facility may also receive up to 6

20 inter-track wagering location licenses. In no event shall

21 more than 6 inter-track wagering locations be established

22 for each eligible race track, except that an eligible race

23 track located in a county that has a population of more

24 than 230,000 and that is bounded by the Mississippi River

25 may establish up to 7 inter-track wagering locations. An

26 application for said license shall be filed with the Board

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1 prior to such dates as may be fixed by the Board. With an

2 application for an inter-track wagering location license

3 there shall be delivered to the Board a certified check or

4 bank draft payable to the order of the Board for an amount

5 equal to $500. The application shall be on forms prescribed

6 and furnished by the Board. The application shall comply

7 with all other rules, regulations and conditions imposed by

8 the Board in connection therewith.

9 (2) The Board shall examine the applications with

10 respect to their conformity with this Act and the rules and

11 regulations imposed by the Board. If found to be in

12 compliance with the Act and rules and regulations of the

13 Board, the Board may then issue a license to conduct

14 inter-track wagering and simulcast wagering to such

15 applicant. All such applications shall be acted upon by the

16 Board at a meeting to be held on such date as may be fixed

17 by the Board.

18 (3) In granting licenses to conduct inter-track

19 wagering and simulcast wagering, the Board shall give due

20 consideration to the best interests of the public, of horse

21 racing, and of maximizing revenue to the State.

22 (4) Prior to the issuance of a license to conduct

23 inter-track wagering and simulcast wagering, the applicant

24 shall file with the Board a bond payable to the State of

25 Illinois in the sum of $50,000, executed by the applicant

26 and a surety company or companies authorized to do business

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1 in this State, and conditioned upon (i) the payment by the

2 licensee of all taxes due under Section 27 or 27.1 and any

3 other monies due and payable under this Act, and (ii)

4 distribution by the licensee, upon presentation of the

5 winning ticket or tickets, of all sums payable to the

6 patrons of pari-mutuel pools.

7 (5) Each license to conduct inter-track wagering and

8 simulcast wagering shall specify the person to whom it is

9 issued, the dates on which such wagering is permitted, and

10 the track or location where the wagering is to be

11 conducted.

12 (6) All wagering under such license is subject to this

13 Act and to the rules and regulations from time to time

14 prescribed by the Board, and every such license issued by

15 the Board shall contain a recital to that effect.

16 (7) An inter-track wagering licensee or inter-track

17 wagering location licensee may accept wagers at the track

18 or location where it is licensed, or as otherwise provided

19 under this Act.

20 (8) Inter-track wagering or simulcast wagering shall

21 not be conducted at any track less than4 ~~5~~ miles from a

22 track at which a racing meeting is in progress.

23 (8.1) Inter-track wagering location licensees who

24 derive their licenses from a particular organization

25 licensee shall conduct inter-track wagering and simulcast

26 wagering only at locations which are either within 90 miles

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1 of that race track where the particular organization

2 licensee is licensed to conduct racing, or within 135 miles

3 of that race track where the particular organization

4 licensee is licensed to conduct racing in the case of race

5 tracks in counties of less than 400,000 that were operating

6 on or before June 1, 1986. However, inter-track wagering

7 and simulcast wagering shall not be conducted by those

8 licensees at any location within 5 miles of any race track

9 at which a horse race meeting has been licensed in the

10 current year, unless the person having operating control of

11 such race track has given its written consent to such

12 inter-track wagering location licensees, which consent

13 must be filed with the Board at or prior to the time

14 application is made.

15 (8.2) Inter-track wagering or simulcast wagering shall

16 not be conducted by an inter-track wagering location

17 licensee at any location within 500 feet of an existing

18 church, an ~~or~~ existing elementary or secondary public

19 school, or an existing elementary or secondary private

20 school registered with or recognized by the State Board of

21 Education ~~school~~, nor within 500 feet of the residences of

22 more than 50 registered voters without receiving written

23 permission from a majority of the registered voters at such

24 residences. Such written permission statements shall be

25 filed with the Board. The distance of 500 feet shall be

26 measured to the nearest part of any building used for

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1 worship services, education programs, residential

2 purposes, or conducting inter-track wagering by an

3 inter-track wagering location licensee, and not to

4 property boundaries. However, inter-track wagering or

5 simulcast wagering may be conducted at a site within 500

6 feet of a church, school or residences of 50 or more

7 registered voters if such church, school or residences have

8 been erected or established, or such voters have been

9 registered, after the Board issues the original

10 inter-track wagering location license at the site in

11 question. Inter-track wagering location licensees may

12 conduct inter-track wagering and simulcast wagering only

13 in areas that are zoned for commercial or manufacturing

14 purposes or in areas for which a special use has been

15 approved by the local zoning authority. However, no license

16 to conduct inter-track wagering and simulcast wagering

17 shall be granted by the Board with respect to any

18 inter-track wagering location within the jurisdiction of

19 any local zoning authority which has, by ordinance or by

20 resolution, prohibited the establishment of an inter-track

21 wagering location within its jurisdiction. However,

22 inter-track wagering and simulcast wagering may be

23 conducted at a site if such ordinance or resolution is

24 enacted after the Board licenses the original inter-track

25 wagering location licensee for the site in question.

26 (9) (Blank).

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1 (10) An inter-track wagering licensee or an

2 inter-track wagering location licensee may retain, subject

3 to the payment of the privilege taxes and the purses, an

4 amount not to exceed 17% of all money wagered. Each program

5 of racing conducted by each inter-track wagering licensee

6 or inter-track wagering location licensee shall be

7 considered a separate racing day for the purpose of

8 determining the daily handle and computing the privilege

9 tax or pari-mutuel tax on such daily handle as provided in

10 Section 27.

11 (10.1) Except as provided in subsection (g) of Section

12 27 of this Act, inter-track wagering location licensees

13 shall pay 1% of the pari-mutuel handle at each location to

14 the municipality in which such location is situated and 1%

15 of the pari-mutuel handle at each location to the county in

16 which such location is situated. In the event that an

17 inter-track wagering location licensee is situated in an

18 unincorporated area of a county, such licensee shall pay 2%

19 of the pari-mutuel handle from such location to such

20 county.

21 (10.2) Notwithstanding any other provision of this

22 Act, with respect to intertrack wagering at a race track

23 located in a county that has a population of more than

24 230,000 and that is bounded by the Mississippi River ("the

25 first race track"), or at a facility operated by an

26 inter-track wagering licensee or inter-track wagering

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1 location licensee that derives its license from the

2 organization licensee that operates the first race track,

3 on races conducted at the first race track or on races

4 conducted at another Illinois race track and

5 simultaneously televised to the first race track or to a

6 facility operated by an inter-track wagering licensee or

7 inter-track wagering location licensee that derives its

8 license from the organization licensee that operates the

9 first race track, those moneys shall be allocated as

10 follows:

11 (A) That portion of all moneys wagered on

12 standardbred racing that is required under this Act to

13 be paid to purses shall be paid to purses for

14 standardbred races.

15 (B) That portion of all moneys wagered on

16 thoroughbred racing that is required under this Act to

17 be paid to purses shall be paid to purses for

18 thoroughbred races.

19 (11) (A) After payment of the privilege or pari-mutuel

20 tax, any other applicable taxes, and the costs and expenses

21 in connection with the gathering, transmission, and

22 dissemination of all data necessary to the conduct of

23 inter-track wagering, the remainder of the monies retained

24 under either Section 26 or Section 26.2 of this Act by the

25 inter-track wagering licensee on inter-track wagering

26 shall be allocated with 50% to be split between the 2

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1 participating licensees and 50% to purses, except that an

2 intertrack wagering licensee that derives its license from

3 a track located in a county with a population in excess of

4 230,000 and that borders the Mississippi River shall not

5 divide any remaining retention with the Illinois

6 organization licensee that provides the race or races, and

7 an intertrack wagering licensee that accepts wagers on

8 races conducted by an organization licensee that conducts a

9 race meet in a county with a population in excess of

10 230,000 and that borders the Mississippi River shall not

11 divide any remaining retention with that organization

12 licensee.

13 (B) From the sums permitted to be retained pursuant to

14 this Act each inter-track wagering location licensee shall

15 pay (i) the privilege or pari-mutuel tax to the State; (ii)

16 4.75% of the pari-mutuel handle on intertrack wagering at

17 such location on races as purses, except that an intertrack

18 wagering location licensee that derives its license from a

19 track located in a county with a population in excess of

20 230,000 and that borders the Mississippi River shall retain

21 all purse moneys for its own purse account consistent with

22 distribution set forth in this subsection (h), and

23 intertrack wagering location licensees that accept wagers

24 on races conducted by an organization licensee located in a

25 county with a population in excess of 230,000 and that

26 borders the Mississippi River shall distribute all purse

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1 moneys to purses at the operating host track; (iii) until

2 January 1, 2000, except as provided in subsection (g) of

3 Section 27 of this Act, 1% of the pari-mutuel handle

4 wagered on inter-track wagering and simulcast wagering at

5 each inter-track wagering location licensee facility to

6 the Horse Racing Tax Allocation Fund, provided that, to the

7 extent the total amount collected and distributed to the

8 Horse Racing Tax Allocation Fund under this subsection (h)

9 during any calendar year exceeds the amount collected and

10 distributed to the Horse Racing Tax Allocation Fund during

11 calendar year 1994, that excess amount shall be

12 redistributed (I) to all inter-track wagering location

13 licensees, based on each licensee's pro-rata share of the

14 total handle from inter-track wagering and simulcast

15 wagering for all inter-track wagering location licensees

16 during the calendar year in which this provision is

17 applicable; then (II) the amounts redistributed to each

18 inter-track wagering location licensee as described in

19 subpart (I) shall be further redistributed as provided in

20 subparagraph (B) of paragraph (5) of subsection (g) of this

21 Section 26 provided first, that the shares of those

22 amounts, which are to be redistributed to the host track or

23 to purses at the host track under subparagraph (B) of

24 paragraph (5) of subsection (g) of this Section 26 shall be

25 redistributed based on each host track's pro rata share of

26 the total inter-track wagering and simulcast wagering

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1 handle at all host tracks during the calendar year in

2 question, and second, that any amounts redistributed as

3 described in part (I) to an inter-track wagering location

4 licensee that accepts wagers on races conducted by an

5 organization licensee that conducts a race meet in a county

6 with a population in excess of 230,000 and that borders the

7 Mississippi River shall be further redistributed as

8 provided in subparagraphs (D) and (E) of paragraph (7) of

9 subsection (g) of this Section 26, with the portion of that

10 further redistribution allocated to purses at that

11 organization licensee to be divided between standardbred

12 purses and thoroughbred purses based on the amounts

13 otherwise allocated to purses at that organization

14 licensee during the calendar year in question; and (iv) 8%

15 of the pari-mutuel handle on inter-track wagering wagered

16 at such location to satisfy all costs and expenses of

17 conducting its wagering. The remainder of the monies

18 retained by the inter-track wagering location licensee

19 shall be allocated 40% to the location licensee and 60% to

20 the organization licensee which provides the Illinois

21 races to the location, except that an intertrack wagering

22 location licensee that derives its license from a track

23 located in a county with a population in excess of 230,000

24 and that borders the Mississippi River shall not divide any

25 remaining retention with the organization licensee that

26 provides the race or races and an intertrack wagering

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1 location licensee that accepts wagers on races conducted by

2 an organization licensee that conducts a race meet in a

3 county with a population in excess of 230,000 and that

4 borders the Mississippi River shall not divide any

5 remaining retention with the organization licensee.

6 Notwithstanding the provisions of clauses (ii) and (iv) of

7 this paragraph, in the case of the additional inter-track

8 wagering location licenses authorized under paragraph (1)

9 of this subsection (h) by this amendatory Act of 1991,

10 those licensees shall pay the following amounts as purses:

11 during the first 12 months the licensee is in operation,

12 5.25% of the pari-mutuel handle wagered at the location on

13 races; during the second 12 months, 5.25%; during the third

14 12 months, 5.75%; during the fourth 12 months, 6.25%; and

15 during the fifth 12 months and thereafter, 6.75%. The

16 following amounts shall be retained by the licensee to

17 satisfy all costs and expenses of conducting its wagering:

18 during the first 12 months the licensee is in operation,

19 8.25% of the pari-mutuel handle wagered at the location;

20 during the second 12 months, 8.25%; during the third 12

21 months, 7.75%; during the fourth 12 months, 7.25%; and

22 during the fifth 12 months and thereafter, 6.75%. For

23 additional intertrack wagering location licensees

24 authorized under this amendatory Act of 1995, purses for

25 the first 12 months the licensee is in operation shall be

26 5.75% of the pari-mutuel wagered at the location, purses

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1 for the second 12 months the licensee is in operation shall

2 be 6.25%, and purses thereafter shall be 6.75%. For

3 additional intertrack location licensees authorized under

4 this amendatory Act of 1995, the licensee shall be allowed

5 to retain to satisfy all costs and expenses: 7.75% of the

6 pari-mutuel handle wagered at the location during its first

7 12 months of operation, 7.25% during its second 12 months

8 of operation, and 6.75% thereafter.

9 (C) There is hereby created the Horse Racing Tax

10 Allocation Fund which shall remain in existence until

11 December 31, 1999. Moneys remaining in the Fund after

12 December 31, 1999 shall be paid into the General Revenue

13 Fund. Until January 1, 2000, all monies paid into the Horse

14 Racing Tax Allocation Fund pursuant to this paragraph (11)

15 by inter-track wagering location licensees located in park

16 districts of 500,000 population or less, or in a

17 municipality that is not included within any park district

18 but is included within a conservation district and is the

19 county seat of a county that (i) is contiguous to the state

20 of Indiana and (ii) has a 1990 population of 88,257

21 according to the United States Bureau of the Census, and

22 operating on May 1, 1994 shall be allocated by

23 appropriation as follows:

24 Two-sevenths to the Department of Agriculture.

25 Fifty percent of this two-sevenths shall be used to

26 promote the Illinois horse racing and breeding

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1 industry, and shall be distributed by the Department of

2 Agriculture upon the advice of a 9-member committee

3 appointed by the Governor consisting of the following

4 members: the Director of Agriculture, who shall serve

5 as chairman; 2 representatives of organization

6 licensees conducting thoroughbred race meetings in

7 this State, recommended by those licensees; 2

8 representatives of organization licensees conducting

9 standardbred race meetings in this State, recommended

10 by those licensees; a representative of the Illinois

11 Thoroughbred Breeders and Owners Foundation,

12 recommended by that Foundation; a representative of

13 the Illinois Standardbred Owners and Breeders

14 Association, recommended by that Association; a

15 representative of the Horsemen's Benevolent and

16 Protective Association or any successor organization

17 thereto established in Illinois comprised of the

18 largest number of owners and trainers, recommended by

19 that Association or that successor organization; and a

20 representative of the Illinois Harness Horsemen's

21 Association, recommended by that Association.

22 Committee members shall serve for terms of 2 years,

23 commencing January 1 of each even-numbered year. If a

24 representative of any of the above-named entities has

25 not been recommended by January 1 of any even-numbered

26 year, the Governor shall appoint a committee member to

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1 fill that position. Committee members shall receive no

2 compensation for their services as members but shall be

3 reimbursed for all actual and necessary expenses and

4 disbursements incurred in the performance of their

5 official duties. The remaining 50% of this

6 two-sevenths shall be distributed to county fairs for

7 premiums and rehabilitation as set forth in the

8 Agricultural Fair Act;

9 Four-sevenths to park districts or municipalities

10 that do not have a park district of 500,000 population

11 or less for museum purposes (if an inter-track wagering

12 location licensee is located in such a park district)

13 or to conservation districts for museum purposes (if an

14 inter-track wagering location licensee is located in a

15 municipality that is not included within any park

16 district but is included within a conservation

17 district and is the county seat of a county that (i) is

18 contiguous to the state of Indiana and (ii) has a 1990

19 population of 88,257 according to the United States

20 Bureau of the Census, except that if the conservation

21 district does not maintain a museum, the monies shall

22 be allocated equally between the county and the

23 municipality in which the inter-track wagering

24 location licensee is located for general purposes) or

25 to a municipal recreation board for park purposes (if

26 an inter-track wagering location licensee is located

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1 in a municipality that is not included within any park

2 district and park maintenance is the function of the

3 municipal recreation board and the municipality has a

4 1990 population of 9,302 according to the United States

5 Bureau of the Census); provided that the monies are

6 distributed to each park district or conservation

7 district or municipality that does not have a park

8 district in an amount equal to four-sevenths of the

9 amount collected by each inter-track wagering location

10 licensee within the park district or conservation

11 district or municipality for the Fund. Monies that were

12 paid into the Horse Racing Tax Allocation Fund before

13 the effective date of this amendatory Act of 1991 by an

14 inter-track wagering location licensee located in a

15 municipality that is not included within any park

16 district but is included within a conservation

17 district as provided in this paragraph shall, as soon

18 as practicable after the effective date of this

19 amendatory Act of 1991, be allocated and paid to that

20 conservation district as provided in this paragraph.

21 Any park district or municipality not maintaining a

22 museum may deposit the monies in the corporate fund of

23 the park district or municipality where the

24 inter-track wagering location is located, to be used

25 for general purposes; and

26 One-seventh to the Agricultural Premium Fund to be

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1 used for distribution to agricultural home economics

2 extension councils in accordance with "An Act in

3 relation to additional support and finances for the

4 Agricultural and Home Economic Extension Councils in

5 the several counties of this State and making an

6 appropriation therefor", approved July 24, 1967.

7 Until January 1, 2000, all other monies paid into the

8 Horse Racing Tax Allocation Fund pursuant to this paragraph

9 (11) shall be allocated by appropriation as follows:

10 Two-sevenths to the Department of Agriculture.

11 Fifty percent of this two-sevenths shall be used to

12 promote the Illinois horse racing and breeding

13 industry, and shall be distributed by the Department of

14 Agriculture upon the advice of a 9-member committee

15 appointed by the Governor consisting of the following

16 members: the Director of Agriculture, who shall serve

17 as chairman; 2 representatives of organization

18 licensees conducting thoroughbred race meetings in

19 this State, recommended by those licensees; 2

20 representatives of organization licensees conducting

21 standardbred race meetings in this State, recommended

22 by those licensees; a representative of the Illinois

23 Thoroughbred Breeders and Owners Foundation,

24 recommended by that Foundation; a representative of

25 the Illinois Standardbred Owners and Breeders

26 Association, recommended by that Association; a

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1 representative of the Horsemen's Benevolent and

2 Protective Association or any successor organization

3 thereto established in Illinois comprised of the

4 largest number of owners and trainers, recommended by

5 that Association or that successor organization; and a

6 representative of the Illinois Harness Horsemen's

7 Association, recommended by that Association.

8 Committee members shall serve for terms of 2 years,

9 commencing January 1 of each even-numbered year. If a

10 representative of any of the above-named entities has

11 not been recommended by January 1 of any even-numbered

12 year, the Governor shall appoint a committee member to

13 fill that position. Committee members shall receive no

14 compensation for their services as members but shall be

15 reimbursed for all actual and necessary expenses and

16 disbursements incurred in the performance of their

17 official duties. The remaining 50% of this

18 two-sevenths shall be distributed to county fairs for

19 premiums and rehabilitation as set forth in the

20 Agricultural Fair Act;

21 Four-sevenths to museums and aquariums located in

22 park districts of over 500,000 population; provided

23 that the monies are distributed in accordance with the

24 previous year's distribution of the maintenance tax

25 for such museums and aquariums as provided in Section 2

26 of the Park District Aquarium and Museum Act; and

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1 One-seventh to the Agricultural Premium Fund to be

2 used for distribution to agricultural home economics

3 extension councils in accordance with "An Act in

4 relation to additional support and finances for the

5 Agricultural and Home Economic Extension Councils in

6 the several counties of this State and making an

7 appropriation therefor", approved July 24, 1967. This

8 subparagraph (C) shall be inoperative and of no force

9 and effect on and after January 1, 2000.

10 (D) Except as provided in paragraph (11) of this

11 subsection (h), with respect to purse allocation from

12 intertrack wagering, the monies so retained shall be

13 divided as follows:

14 (i) If the inter-track wagering licensee,

15 except an intertrack wagering licensee that

16 derives its license from an organization licensee

17 located in a county with a population in excess of

18 230,000 and bounded by the Mississippi River, is

19 not conducting its own race meeting during the same

20 dates, then the entire purse allocation shall be to

21 purses at the track where the races wagered on are

22 being conducted.

23 (ii) If the inter-track wagering licensee,

24 except an intertrack wagering licensee that

25 derives its license from an organization licensee

26 located in a county with a population in excess of

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1 230,000 and bounded by the Mississippi River, is

2 also conducting its own race meeting during the

3 same dates, then the purse allocation shall be as

4 follows: 50% to purses at the track where the races

5 wagered on are being conducted; 50% to purses at

6 the track where the inter-track wagering licensee

7 is accepting such wagers.

8 (iii) If the inter-track wagering is being

9 conducted by an inter-track wagering location

10 licensee, except an intertrack wagering location

11 licensee that derives its license from an

12 organization licensee located in a county with a

13 population in excess of 230,000 and bounded by the

14 Mississippi River, the entire purse allocation for

15 Illinois races shall be to purses at the track

16 where the race meeting being wagered on is being

17 held.

18 (12) The Board shall have all powers necessary and

19 proper to fully supervise and control the conduct of

20 inter-track wagering and simulcast wagering by inter-track

21 wagering licensees and inter-track wagering location

22 licensees, including, but not limited to the following:

23 (A) The Board is vested with power to promulgate

24 reasonable rules and regulations for the purpose of

25 administering the conduct of this wagering and to

26 prescribe reasonable rules, regulations and conditions

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1 under which such wagering shall be held and conducted.

2 Such rules and regulations are to provide for the

3 prevention of practices detrimental to the public

4 interest and for the best interests of said wagering

5 and to impose penalties for violations thereof.

6 (B) The Board, and any person or persons to whom it

7 delegates this power, is vested with the power to enter

8 the facilities of any licensee to determine whether

9 there has been compliance with the provisions of this

10 Act and the rules and regulations relating to the

11 conduct of such wagering.

12 (C) The Board, and any person or persons to whom it

13 delegates this power, may eject or exclude from any

14 licensee's facilities, any person whose conduct or

15 reputation is such that his presence on such premises

16 may, in the opinion of the Board, call into the

17 question the honesty and integrity of, or interfere

18 with the orderly conduct of such wagering; provided,

19 however, that no person shall be excluded or ejected

20 from such premises solely on the grounds of race,

21 color, creed, national origin, ancestry, or sex.

22 (D) (Blank).

23 (E) The Board is vested with the power to appoint

24 delegates to execute any of the powers granted to it

25 under this Section for the purpose of administering

26 this wagering and any rules and regulations

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1 promulgated in accordance with this Act.

2 (F) The Board shall name and appoint a State

3 director of this wagering who shall be a representative

4 of the Board and whose duty it shall be to supervise

5 the conduct of inter-track wagering as may be provided

6 for by the rules and regulations of the Board; such

7 rules and regulation shall specify the method of

8 appointment and the Director's powers, authority and

9 duties.

10 (G) The Board is vested with the power to impose

11 civil penalties of up to $5,000 against individuals and

12 up to $10,000 against licensees for each violation of

13 any provision of this Act relating to the conduct of

14 this wagering, any rules adopted by the Board, any

15 order of the Board or any other action which in the

16 Board's discretion, is a detriment or impediment to

17 such wagering.

18 (13) The Department of Agriculture may enter into

19 agreements with licensees authorizing such licensees to

20 conduct inter-track wagering on races to be held at the

21 licensed race meetings conducted by the Department of

22 Agriculture. Such agreement shall specify the races of the

23 Department of Agriculture's licensed race meeting upon

24 which the licensees will conduct wagering. In the event

25 that a licensee conducts inter-track pari-mutuel wagering

26 on races from the Illinois State Fair or DuQuoin State Fair

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1 which are in addition to the licensee's previously approved

2 racing program, those races shall be considered a separate

3 racing day for the purpose of determining the daily handle

4 and computing the privilege or pari-mutuel tax on that

5 daily handle as provided in Sections 27 and 27.1. Such

6 agreements shall be approved by the Board before such

7 wagering may be conducted. In determining whether to grant

8 approval, the Board shall give due consideration to the

9 best interests of the public and of horse racing. The

10 provisions of paragraphs (1), (8), (8.1), and (8.2) of

11 subsection (h) of this Section which are not specified in

12 this paragraph (13) shall not apply to licensed race

13 meetings conducted by the Department of Agriculture at the

14 Illinois State Fair in Sangamon County or the DuQuoin State

15 Fair in Perry County, or to any wagering conducted on those

16 race meetings.

17 (i) Notwithstanding the other provisions of this Act, the

18 conduct of wagering at wagering facilities is authorized on all

19 days, except as limited by subsection (b) of Section 19 of this

20 Act.

21 (Source: P.A. 96-762, eff. 8-25-09; 97-1060, eff. 8-24-12.)

22 (230 ILCS 5/27) (from Ch. 8, par. 37-27)

23 Sec. 27. (a) In addition to the organization license fee

24 provided by this Act, until January 1, 2000, a graduated

25 privilege tax is hereby imposed for conducting the pari-mutuel

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1 system of wagering permitted under this Act. Until January 1,

2 2000, except as provided in subsection (g) of Section 27 of

3 this Act, all of the breakage of each racing day held by any

4 licensee in the State shall be paid to the State. Until January

5 1, 2000, such daily graduated privilege tax shall be paid by

6 the licensee from the amount permitted to be retained under

7 this Act. Until January 1, 2000, each day's graduated privilege

8 tax, breakage, and Horse Racing Tax Allocation funds shall be

9 remitted to the Department of Revenue within 48 hours after the

10 close of the racing day upon which it is assessed or within

11 such other time as the Board prescribes. The privilege tax

12 hereby imposed, until January 1, 2000, shall be a flat tax at

13 the rate of 2% of the daily pari-mutuel handle except as

14 provided in Section 27.1.

15 In addition, every organization licensee, except as

16 provided in Section 27.1 of this Act, which conducts multiple

17 wagering shall pay, until January 1, 2000, as a privilege tax

18 on multiple wagers an amount equal to 1.25% of all moneys

19 wagered each day on such multiple wagers, plus an additional

20 amount equal to 3.5% of the amount wagered each day on any

21 other multiple wager which involves a single betting interest

22 on 3 or more horses. The licensee shall remit the amount of

23 such taxes to the Department of Revenue within 48 hours after

24 the close of the racing day on which it is assessed or within

25 such other time as the Board prescribes.

26 This subsection (a) shall be inoperative and of no force

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1 and effect on and after January 1, 2000.

2 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax

3 at the rate of 1.5% of the daily pari-mutuel handle is imposed

4 at all pari-mutuel wagering facilities and on advance deposit

5 wagering from a location other than a wagering facility, except

6 as otherwise provided for in this subsection (a-5). In addition

7 to the pari-mutuel tax imposed on advance deposit wagering

8 pursuant to this subsection (a-5), beginning on the effective

9 date of this amendatory Act of the 97th General Assembly until

10 January 1, 2013, an additional pari-mutuel tax at the rate of

11 0.25% shall be imposed on advance deposit wagering. Until

12 August 25, 2012, the additional 0.25% pari-mutuel tax imposed

13 on advance deposit wagering by Public Act 96-972 shall be

14 deposited into the Quarter Horse Purse Fund, which shall be

15 created as a non-appropriated trust fund administered by the

16 Board for grants to thoroughbred organization licensees for

17 payment of purses for quarter horse races conducted by the

18 organization licensee. Beginning on August 26, 2012, the

19 additional 0.25% pari-mutuel tax imposed on advance deposit

20 wagering shall be deposited equally into the standardbred purse

21 accounts of organization licensees conducting standardbred

22 racing. Thoroughbred organization licensees may petition the

23 Board to conduct quarter horse racing and receive purse grants

24 from the Quarter Horse Purse Fund. The Board shall have

25 complete discretion in distributing the Quarter Horse Purse

26 Fund to the petitioning organization licensees. Beginning on

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1 the effective date of this amendatory Act of the 96th General

2 Assembly and until moneys deposited pursuant to Section 54 are

3 distributed and received, a pari-mutuel tax at the rate of

4 0.75% of the daily pari-mutuel handle is imposed at a

5 pari-mutuel facility whose license is derived from a track

6 located in a county that borders the Mississippi River and

7 conducted live racing in the previous year. After moneys

8 deposited pursuant to Section 54 are distributed and received,

9 a pari-mutuel tax at the rate of 1.5% of the daily pari-mutuel

10 handle is imposed at a pari-mutuel facility whose license is

11 derived from a track located in a county that borders the

12 Mississippi River and conducted live racing in the previous

13 year. The pari-mutuel tax imposed by this subsection (a-5)

14 shall be remitted to the Department of Revenue within 48 hours

15 after the close of the racing day upon which it is assessed or

16 within such other time as the Board prescribes.

17 (a-10) Beginning on the date when an organization licensee

18 begins conducting electronic gaming pursuant to an electronic

19 gaming license, the following pari-mutuel tax is imposed upon

20 an organization licensee on Illinois races at the licensee's

21 race track:

22 1.5% of the pari-mutuel handle at or below the average

23 daily pari-mutuel handle for 2011.

24 2% of the pari-mutuel handle above the average daily

25 pari-mutuel handle for 2011 up to 125% of the average daily

26 pari-mutuel handle for 2011.

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1 2.5% of the pari-mutuel handle 125% or more above the

2 average daily pari-mutuel handle for 2011 up to 150% of the

3 average daily pari-mutuel handle for 2011.

4 3% of the pari-mutuel handle 150% or more above the

5 average daily pari-mutuel handle for 2011 up to 175% of the

6 average daily pari-mutuel handle for 2011.

7 3.5% of the pari-mutuel handle 175% or more above the

8 average daily pari-mutuel handle for 2011.

9 The pari-mutuel tax imposed by this subsection (a-10) shall

10 be remitted to the Board within 48 hours after the close of the

11 racing day upon which it is assessed or within such other time

12 as the Board prescribes.

13 (b) On or before December 31, 1999, in the event that any

14 organization licensee conducts 2 separate programs of races on

15 any day, each such program shall be considered a separate

16 racing day for purposes of determining the daily handle and

17 computing the privilege tax on such daily handle as provided in

18 subsection (a) of this Section.

19 (c) Licensees shall at all times keep accurate books and

20 records of all monies wagered on each day of a race meeting and

21 of the taxes paid to the Department of Revenue under the

22 provisions of this Section. The Board or its duly authorized

23 representative or representatives shall at all reasonable

24 times have access to such records for the purpose of examining

25 and checking the same and ascertaining whether the proper

26 amount of taxes is being paid as provided. The Board shall

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1 require verified reports and a statement of the total of all

2 monies wagered daily at each wagering facility upon which the

3 taxes are assessed and may prescribe forms upon which such

4 reports and statement shall be made.

5 (d) Before a license is issued or re-issued, the licensee

6 shall post a bond in the sum of $500,000 to the State of

7 Illinois. The bond shall be used to guarantee that the licensee

8 faithfully makes the payments, keeps the books and records and

9 makes reports, and conducts games of chance in conformity with

10 this Act and the rules adopted by the Board. The bond shall not

11 be canceled by a surety on less than 30 days' notice in writing

12 to the Board. If a bond is canceled and the licensee fails to

13 file a new bond with the Board in the required amount on or

14 before the effective date of cancellation, the licensee's

15 license shall be revoked. The total and aggregate liability of

16 the surety on the bond is limited to the amount specified in

17 the bond. ~~Any licensee failing or refusing to pay the amount of~~

18 ~~any tax due under this Section shall be guilty of a business~~

19 ~~offense and upon conviction shall be fined not more than $5,000~~

20 ~~in addition to the amount found due as tax under this Section.~~

21 ~~Each day's violation shall constitute a separate offense. All~~

22 ~~fines paid into Court by a licensee hereunder shall be~~

23 ~~transmitted and paid over by the Clerk of the Court to the~~

24 ~~Board.~~

25 (e) No other license fee, privilege tax, excise tax, or

26 racing fee, except as provided in this Act, shall be assessed

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1 or collected from any such licensee by the State.

2 (f) No other license fee, privilege tax, excise tax or

3 racing fee shall be assessed or collected from any such

4 licensee by units of local government except as provided in

5 paragraph 10.1 of subsection (h) and subsection (f) of Section

6 26 of this Act. However, any municipality that has a Board

7 licensed horse race meeting at a race track wholly within its

8 corporate boundaries or a township that has a Board licensed

9 horse race meeting at a race track wholly within the

10 unincorporated area of the township may charge a local

11 amusement tax not to exceed 10� per admission to such horse

12 race meeting by the enactment of an ordinance. However, any

13 municipality or county that has a Board licensed inter-track

14 wagering location facility wholly within its corporate

15 boundaries may each impose an admission fee not to exceed $1.00

16 per admission to such inter-track wagering location facility,

17 so that a total of not more than $2.00 per admission may be

18 imposed. Except as provided in subparagraph (g) of Section 27

19 of this Act, the inter-track wagering location licensee shall

20 collect any and all such fees and within 48 hours remit the

21 fees to the Board, which shall, pursuant to rule, cause the

22 fees to be distributed to the county or municipality.

23 (g) Notwithstanding any provision in this Act to the

24 contrary, if in any calendar year the total taxes and feesfrom

25 wagering on live racing and from inter-track wagering required

26 to be collected from licensees and distributed under this Act

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1 to all State and local governmental authorities exceeds the

2 amount of such taxes and fees distributed to each State and

3 local governmental authority to which each State and local

4 governmental authority was entitled under this Act for calendar

5 year 1994, then the first $11 million of that excess amount

6 shall be allocated at the earliest possible date for

7 distribution as purse money for the succeeding calendar year.

8 Upon reaching the 1994 level, and until the excess amount of

9 taxes and fees exceeds $11 million, the Board shall direct all

10 licensees to cease paying the subject taxes and fees and the

11 Board shall direct all licensees to allocate any such excess

12 amount for purses as follows:

13 (i) the excess amount shall be initially divided

14 between thoroughbred and standardbred purses based on the

15 thoroughbred's and standardbred's respective percentages

16 of total Illinois live wagering in calendar year 1994;

17 (ii) each thoroughbred and standardbred organization

18 licensee issued an organization licensee in that

19 succeeding allocation year shall be allocated an amount

20 equal to the product of its percentage of total Illinois

21 live thoroughbred or standardbred wagering in calendar

22 year 1994 (the total to be determined based on the sum of

23 1994 on-track wagering for all organization licensees

24 issued organization licenses in both the allocation year

25 and the preceding year) multiplied by the total amount

26 allocated for standardbred or thoroughbred purses,

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1 provided that the first $1,500,000 of the amount allocated

2 to standardbred purses under item (i) shall be allocated to

3 the Department of Agriculture to be expended with the

4 assistance and advice of the Illinois Standardbred

5 Breeders Funds Advisory Board for the purposes listed in

6 subsection (g) of Section 31 of this Act, before the amount

7 allocated to standardbred purses under item (i) is

8 allocated to standardbred organization licensees in the

9 succeeding allocation year.

10 To the extent the excess amount of taxes and fees to be

11 collected and distributed to State and local governmental

12 authorities exceeds $11 million, that excess amount shall be

13 collected and distributed to State and local authorities as

14 provided for under this Act.

15 (Source: P.A. 96-762, eff. 8-25-09; 96-1287, eff. 7-26-10;

16 97-1060, eff. 8-24-12.)

17 (230 ILCS 5/30) (from Ch. 8, par. 37-30)

18 Sec. 30. (a) The General Assembly declares that it is the

19 policy of this State to encourage the breeding of thoroughbred

20 horses in this State and the ownership of such horses by

21 residents of this State in order to provide for: sufficient

22 numbers of high quality thoroughbred horses to participate in

23 thoroughbred racing meetings in this State, and to establish

24 and preserve the agricultural and commercial benefits of such

25 breeding and racing industries to the State of Illinois. It is

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1 the intent of the General Assembly to further this policy by

2 the provisions of this Act.

3 (b) Each organization licensee conducting a thoroughbred

4 racing meeting pursuant to this Act shall provide at least two

5 races each day limited to Illinois conceived and foaled horses

6 or Illinois foaled horses or both. A minimum of 6 races shall

7 be conducted each week limited to Illinois conceived and foaled

8 or Illinois foaled horses or both. No horses shall be permitted

9 to start in such races unless duly registered under the rules

10 of the Department of Agriculture.

11 (c) Conditions of races under subsection (b) shall be

12 commensurate with past performance, quality, and class of

13 Illinois conceived and foaled and Illinois foaled horses

14 available. If, however, sufficient competition cannot be had

15 among horses of that class on any day, the races may, with

16 consent of the Board, be eliminated for that day and substitute

17 races provided.

18 (d) There is hereby created a special fund of the State

19 Treasury to be known as the Illinois Thoroughbred Breeders

20 Fund.

21 Beginning on the effective date of this amendatory Act of

22 the 98th General Assembly, the Illinois Thoroughbred Breeders

23 Fund shall become a non-appropriated trust fund held separately

24 from State moneys. Expenditures from this Fund shall no longer

25 be subject to appropriation.

26 Except as provided in subsection (g) of Section 27 of this

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1 Act, 8.5% of all the monies received by the State as privilege

2 taxes on Thoroughbred racing meetings shall be paid into the

3 Illinois Thoroughbred Breeders Fund.

4 Notwithstanding any provision of law to the contrary,

5 amounts deposited into the Illinois Thoroughbred Breeders Fund

6 from revenues generated by electronic gaming after the

7 effective date of this amendatory Act of the 98th General

8 Assembly shall be in addition to tax and fee amounts paid under

9 this Section for calendar year 2013 and thereafter.

10 (e) The Illinois Thoroughbred Breeders Fund shall be

11 administered by the Department of Agriculture with the advice

12 and assistance of the Advisory Board created in subsection (f)

13 of this Section.

14 (f) The Illinois Thoroughbred Breeders Fund Advisory Board

15 shall consist of the Director of the Department of Agriculture,

16 who shall serve as Chairman; a member of the Illinois Racing

17 Board, designated by it; 2 representatives of the organization

18 licensees conducting thoroughbred racing meetings, recommended

19 by them; 2 representatives of the Illinois Thoroughbred

20 Breeders and Owners Foundation, recommended by it; one

21 representative ~~and 2 representatives~~ of the Horsemen's

22 Benevolent Protective Association; and one representative from

23 the Illinois Thoroughbred Horsemen's Association ~~or any~~

24 ~~successor organization established in Illinois comprised of~~

25 ~~the largest number of owners and trainers, recommended by it,~~

26 ~~with one representative of the Horsemen's Benevolent and~~

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1 ~~Protective Association to come from its Illinois Division, and~~

2 ~~one from its Chicago Division~~. Advisory Board members shall

3 serve for 2 years commencing January 1 of each odd numbered

4 year. If representatives of the organization licensees

5 conducting thoroughbred racing meetings, the Illinois

6 Thoroughbred Breeders and Owners Foundation,~~and~~ the

7 Horsemen's Benevolent Protection Association, and the Illinois

8 Thoroughbred Horsemen's Associationhave not been recommended

9 by January 1, of each odd numbered year, the Director of the

10 Department of Agriculture shall make an appointment for the

11 organization failing to so recommend a member of the Advisory

12 Board. Advisory Board members shall receive no compensation for

13 their services as members but shall be reimbursed for all

14 actual and necessary expenses and disbursements incurred in the

15 execution of their official duties.

16 (g) ~~No monies shall be expended from the Illinois~~

17 ~~Thoroughbred Breeders Fund except as appropriated by the~~

18 ~~General Assembly.~~ Monies expended~~appropriated~~ from the

19 Illinois Thoroughbred Breeders Fund shall be expended by the

20 Department of Agriculture, with the advice and assistance of

21 the Illinois Thoroughbred Breeders Fund Advisory Board, for the

22 following purposes only:

23 (1) To provide purse supplements to owners of horses

24 participating in races limited to Illinois conceived and

25 foaled and Illinois foaled horses. Any such purse

26 supplements shall not be included in and shall be paid in

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1 addition to any purses, stakes, or breeders' awards offered

2 by each organization licensee as determined by agreement

3 between such organization licensee and an organization

4 representing the horsemen. No monies from the Illinois

5 Thoroughbred Breeders Fund shall be used to provide purse

6 supplements for claiming races in which the minimum

7 claiming price is less than $7,500.

8 (2) To provide stakes and awards to be paid to the

9 owners of the winning horses in certain races limited to

10 Illinois conceived and foaled and Illinois foaled horses

11 designated as stakes races.

12 (2.5) To provide an award to the owner or owners of an

13 Illinois conceived and foaled or Illinois foaled horse that

14 wins a maiden special weight, an allowance, overnight

15 handicap race, or claiming race with claiming price of

16 $10,000 or more providing the race is not restricted to

17 Illinois conceived and foaled or Illinois foaled horses.

18 Awards shall also be provided to the owner or owners of

19 Illinois conceived and foaled and Illinois foaled horses

20 that place second or third in those races. To the extent

21 that additional moneys are required to pay the minimum

22 additional awards of 40% of the purse the horse earns for

23 placing first, second or third in those races for Illinois

24 foaled horses and of 60% of the purse the horse earns for

25 placing first, second or third in those races for Illinois

26 conceived and foaled horses, those moneys shall be provided

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1 from the purse account at the track where earned.

2 (3) To provide stallion awards to the owner or owners

3 of any stallion that is duly registered with the Illinois

4 Thoroughbred Breeders Fund Program~~prior to the effective~~

5 ~~date of this amendatory Act of 1995~~whose duly registered

6 Illinois conceived and foaled offspring wins a race

7 conducted at an Illinois thoroughbred racing meeting other

8 than a claiming race, provided that the stallion stood

9 service within Illinois at the time the offspring was

10 conceived and that the stallion did not stand for service

11 outside of Illinois at any time during the year in which

12 the offspring was conceived. ~~Such award shall not be paid~~

13 ~~to the owner or owners of an Illinois stallion that served~~

14 ~~outside this State at any time during the calendar year in~~

15 ~~which such race was conducted.~~

16 (4) To provide $75,000 annually for purses to be

17 distributed to county fairs that provide for the running of

18 races during each county fair exclusively for the

19 thoroughbreds conceived and foaled in Illinois. The

20 conditions of the races shall be developed by the county

21 fair association and reviewed by the Department with the

22 advice and assistance of the Illinois Thoroughbred

23 Breeders Fund Advisory Board. There shall be no wagering of

24 any kind on the running of Illinois conceived and foaled

25 races at county fairs.

26 (4.1) To provide purse money for an Illinois stallion

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1 stakes program.

2 (5) No less than 90% ~~80%~~ of all monies appropriated

3 from the Illinois Thoroughbred Breeders Fund shall be

4 expended for the purposes in (1), (2), (2.5), (3), (4),

5 (4.1), and (5) as shown above.

6 (6) To provide for educational programs regarding the

7 thoroughbred breeding industry.

8 (7) To provide for research programs concerning the

9 health, development and care of the thoroughbred horse.

10 (8) To provide for a scholarship and training program

11 for students of equine veterinary medicine.

12 (9) To provide for dissemination of public information

13 designed to promote the breeding of thoroughbred horses in

14 Illinois.

15 (10) To provide for all expenses incurred in the

16 administration of the Illinois Thoroughbred Breeders Fund.

17 (h) The Illinois Thoroughbred Breeders Fund is not subject

18 to administrative charges or chargebacks, including, but not

19 limited to, those authorized under Section 8h of the State

20 Finance Act. ~~Whenever the Governor finds that the amount in the~~

21 ~~Illinois Thoroughbred Breeders Fund is more than the total of~~

22 ~~the outstanding appropriations from such fund, the Governor~~

23 ~~shall notify the State Comptroller and the State Treasurer of~~

24 ~~such fact. The Comptroller and the State Treasurer, upon~~

25 ~~receipt of such notification, shall transfer such excess amount~~

26 ~~from the Illinois Thoroughbred Breeders Fund to the General~~

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1 ~~Revenue Fund.~~

2 (i) A sum equal to 13% ~~12 1/2%~~ of the first prize money of

3 every purse won by an Illinois foaled or an Illinois conceived

4 and foaled horse in races not limited to Illinois foaled horses

5 or Illinois conceived and foaled horses, or both, shall be paid

6 by the organization licensee conducting the horse race meeting.

7 Such sum shall be paid 50%from the organization licensee's

8 account and 50% from the purse account of the licensee ~~share of~~

9 ~~the money wagered~~as follows: 11 1/2% to the breeder of the

10 winning horse and 1 1/2% ~~1%~~ to the organization representing

11 thoroughbred breeders and owners whose representative serves

12 on the Illinois Thoroughbred Breeders Fund Advisory Board for

13 verifying the amounts of breeders' awards earned, assuring

14 their distribution in accordance with this Act, and servicing

15 and promoting the Illinois thoroughbred horse racing industry.

16 Except for that track that races in Madison County, beginning

17 in the calendar year in which an organization licensee that is

18 eligible to receive payment under paragraph (13) of subsection

19 (g) of Section 26 of this Act begins to receive funds from

20 electronic gaming, a sum equal to 21 1/2% of the first prize

21 money of every purse won by an Illinois foaled or an Illinois

22 conceived and foaled horse in races not limited to Illinois

23 foaled horses or Illinois conceived and foaled horses, or both,

24 shall be paid by the organization licensee conducting the horse

25 race meeting. Such sum shall be paid 30% from the organization

26 licensee's account and 70% from the purse account of the

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1 licensee as follows: 20% to the breeder of the winning horse

2 and 1 1/2% to the organization representing thoroughbred

3 breeders and owners whose representative serves on the Illinois

4 Thoroughbred Breeders Fund Advisory Board for verifying the

5 amounts of breeders' awards earned, ensuring their

6 distribution in accordance with this Act, and service and

7 promotion of the Illinois thoroughbred horse racing industry.

8 The organization representing thoroughbred breeders and owners

9 shall cause all expenditures of monies received under this

10 subsection (i) to be audited at least annually by a registered

11 public accountant. The organization shall file copies of each

12 annual audit with the Racing Board, the Clerk of the House of

13 Representatives and the Secretary of the Senate, and shall make

14 copies of each annual audit available to the public upon

15 request and upon payment of the reasonable cost of photocopying

16 the requested number of copies. Such payments shall not reduce

17 any award to the owner of the horse or reduce the taxes payable

18 under this Act. Upon completion of its racing meet, each

19 organization licensee shall deliver to the organization

20 representing thoroughbred breeders and owners whose

21 representative serves on the Illinois Thoroughbred Breeders

22 Fund Advisory Board a listing of all the Illinois foaled and

23 the Illinois conceived and foaled horses which won breeders'

24 awards and the amount of such breeders' awards under this

25 subsection to verify accuracy of payments and assure proper

26 distribution of breeders' awards in accordance with the

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1 provisions of this Act. Such payments shall be delivered by the

2 organization licensee within 30 days of the end of each race

3 meeting.

4 (j) A sum equal to 13% ~~12 1/2%~~ of the first prize money won

5 in each race limited to Illinois foaled horses or Illinois

6 conceived and foaled horses, or both, shall be paid in the

7 following manner by the organization licensee conducting the

8 horse race meeting, 50%from the organization licensee's

9 account and 50% from the purse account of the licensee ~~share of~~

10 ~~the money wagered~~: 11 1/2% to the breeders of the horses in

11 each such race which are the official first, second, third and

12 fourth finishers and 1 1/2% ~~1%~~ to the organization representing

13 thoroughbred breeders and owners whose representative serves

14 on the Illinois Thoroughbred Breeders Fund Advisory Board for

15 verifying the amounts of breeders' awards earned, assuring

16 their proper distribution in accordance with this Act, and

17 servicing and promoting the Illinois thoroughbred horse racing

18 industry. The organization representing thoroughbred breeders

19 and owners shall cause all expenditures of monies received

20 under this subsection (j) to be audited at least annually by a

21 registered public accountant. The organization shall file

22 copies of each annual audit with the Racing Board, the Clerk of

23 the House of Representatives and the Secretary of the Senate,

24 and shall make copies of each annual audit available to the

25 public upon request and upon payment of the reasonable cost of

26 photocopying the requested number of copies.

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1 The 11 1/2% paid to the breeders in accordance with this

2 subsection shall be distributed as follows:

3 (1) 60% of such sum shall be paid to the breeder of the

4 horse which finishes in the official first position;

5 (2) 20% of such sum shall be paid to the breeder of the

6 horse which finishes in the official second position;

7 (3) 15% of such sum shall be paid to the breeder of the

8 horse which finishes in the official third position; and

9 (4) 5% of such sum shall be paid to the breeder of the

10 horse which finishes in the official fourth position.

11 Such payments shall not reduce any award to the owners of a

12 horse or reduce the taxes payable under this Act. Upon

13 completion of its racing meet, each organization licensee shall

14 deliver to the organization representing thoroughbred breeders

15 and owners whose representative serves on the Illinois

16 Thoroughbred Breeders Fund Advisory Board a listing of all the

17 Illinois foaled and the Illinois conceived and foaled horses

18 which won breeders' awards and the amount of such breeders'

19 awards in accordance with the provisions of this Act. Such

20 payments shall be delivered by the organization licensee within

21 30 days of the end of each race meeting.

22 (k) The term "breeder", as used herein, means the owner of

23 the mare at the time the foal is dropped. An "Illinois foaled

24 horse" is a foal dropped by a mare which enters this State on

25 or before December 1, in the year in which the horse is bred,

26 provided the mare remains continuously in this State until its

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1 foal is born. An "Illinois foaled horse" also means a foal born

2 of a mare in the same year as the mare enters this State on or

3 before March 1, and remains in this State at least 30 days

4 after foaling, is bred back during the season of the foaling to

5 an Illinois Registered Stallion (unless a veterinarian

6 certifies that the mare should not be bred for health reasons),

7 and is not bred to a stallion standing in any other state

8 during the season of foaling. An "Illinois foaled horse" also

9 means a foal born in Illinois of a mare purchased at public

10 auction subsequent to the mare entering this Stateon or before

11 March 1 ~~prior to February 1~~of the foaling year providing the

12 mare is owned solely by one or more Illinois residents or an

13 Illinois entity that is entirely owned by one or more Illinois

14 residents.

15 (l) The Department of Agriculture shall, by rule, with the

16 advice and assistance of the Illinois Thoroughbred Breeders

17 Fund Advisory Board:

18 (1) Qualify stallions for Illinois breeding; such

19 stallions to stand for service within the State of Illinois

20 at the time of a foal's conception. Such stallion must not

21 stand for service at any place outside the State of

22 Illinois during the calendar year in which the foal is

23 conceived. The Department of Agriculture may assess and

24 collect an application fee of up to $500 ~~fees~~for the

25 registration of Illinois-eligible stallions. All fees

26 collected are to be held in trust accounts for the purposes

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1 set forth in this Act and in accordance with Section 205-15

2 of the Department of Agriculture Law ~~paid into the Illinois~~

3 ~~Thoroughbred Breeders Fund~~.

4 (2) Provide for the registration of Illinois conceived

5 and foaled horses and Illinois foaled horses. No such horse

6 shall compete in the races limited to Illinois conceived

7 and foaled horses or Illinois foaled horses or both unless

8 registered with the Department of Agriculture. The

9 Department of Agriculture may prescribe such forms as are

10 necessary to determine the eligibility of such horses. The

11 Department of Agriculture may assess and collect

12 application fees for the registration of Illinois-eligible

13 foals. All fees collected are to be held in trust accounts

14 for the purposes set forth in this Act and in accordance

15 with Section 205-15 of the Department of Agriculture Law

16 ~~paid into the Illinois Thoroughbred Breeders Fund~~. No

17 person shall knowingly prepare or cause preparation of an

18 application for registration of such foals containing

19 false information.

20 (m) The Department of Agriculture, with the advice and

21 assistance of the Illinois Thoroughbred Breeders Fund Advisory

22 Board, shall provide that certain races limited to Illinois

23 conceived and foaled and Illinois foaled horses be stakes races

24 and determine the total amount of stakes and awards to be paid

25 to the owners of the winning horses in such races.

26 In determining the stakes races and the amount of awards

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1 for such races, the Department of Agriculture shall consider

2 factors, including but not limited to, the amount of money

3 appropriated for the Illinois Thoroughbred Breeders Fund

4 program, organization licensees' contributions, availability

5 of stakes caliber horses as demonstrated by past performances,

6 whether the race can be coordinated into the proposed racing

7 dates within organization licensees' racing dates, opportunity

8 for colts and fillies and various age groups to race, public

9 wagering on such races, and the previous racing schedule.

10 (n) The Board and the organizational licensee shall notify

11 the Department of the conditions and minimum purses for races

12 limited to Illinois conceived and foaled and Illinois foaled

13 horses conducted for each organizational licensee conducting a

14 thoroughbred racing meeting. The Department of Agriculture

15 with the advice and assistance of the Illinois Thoroughbred

16 Breeders Fund Advisory Board may allocate monies for purse

17 supplements for such races. In determining whether to allocate

18 money and the amount, the Department of Agriculture shall

19 consider factors, including but not limited to, the amount of

20 money appropriated for the Illinois Thoroughbred Breeders Fund

21 program, the number of races that may occur, and the

22 organizational licensee's purse structure.

23 (o) In order to improve the breeding quality of

24 thoroughbred horses in the State, the General Assembly

25 recognizes that existing provisions of this Section to

26 encourage such quality breeding need to be revised and

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1 strengthened. As such, a Thoroughbred Breeder's Program Task

2 Force is to be appointed by the Governor by September 1, 1999

3 to make recommendations to the General Assembly by no later

4 than March 1, 2000. This task force is to be composed of 2

5 representatives from the Illinois Thoroughbred Breeders and

6 Owners Foundation, 2 from the Illinois Thoroughbred Horsemen's

7 Association, 3 from Illinois race tracks operating

8 thoroughbred race meets for an average of at least 30 days in

9 the past 3 years, the Director of Agriculture, the Executive

10 Director of the Racing Board, who shall serve as Chairman.

11 (Source: P.A. 91-40, eff. 6-25-99.)

12 (230 ILCS 5/30.5)

13 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.

14 (a) The General Assembly declares that it is the policy of

15 this State to encourage the breeding of racing quarter horses

16 in this State and the ownership of such horses by residents of

17 this State in order to provide for sufficient numbers of high

18 quality racing quarter horses in this State and to establish

19 and preserve the agricultural and commercial benefits of such

20 breeding and racing industries to the State of Illinois. It is

21 the intent of the General Assembly to further this policy by

22 the provisions of this Act.

23 (b) There is hereby created non-appropriated trust ~~a~~

24 ~~special~~ fund ~~in the State Treasury~~to be known as the Illinois

25 Racing Quarter Horse Breeders Fund, which is held separately

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1 from State moneys. Except as provided in subsection (g) of

2 Section 27 of this Act, 8.5% of all the moneys received by the

3 State as pari-mutuel taxes on quarter horse racing shall be

4 paid into the Illinois Racing Quarter Horse Breeders Fund.The

5 Illinois Racing Quarter Horse Breeders Fund shall not be

6 subject to administrative charges or chargebacks, including,

7 but not limited to, those authorized under Section 8h of the

8 State Finance Act.

9 (c) The Illinois Racing Quarter Horse Breeders Fund shall

10 be administered by the Department of Agriculture with the

11 advice and assistance of the Advisory Board created in

12 subsection (d) of this Section.

13 (d) The Illinois Racing Quarter Horse Breeders Fund

14 Advisory Board shall consist of the Director of the Department

15 of Agriculture, who shall serve as Chairman; a member of the

16 Illinois Racing Board, designated by it; one representative of

17 the organization licensees conducting pari-mutuel quarter

18 horse racing meetings, recommended by them; 2 representatives

19 of the Illinois Running Quarter Horse Association, recommended

20 by it; and the Superintendent of Fairs and Promotions from the

21 Department of Agriculture. Advisory Board members shall serve

22 for 2 years commencing January 1 of each odd numbered year. If

23 representatives have not been recommended by January 1 of each

24 odd numbered year, the Director of the Department of

25 Agriculture may make an appointment for the organization

26 failing to so recommend a member of the Advisory Board.

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1 Advisory Board members shall receive no compensation for their

2 services as members but may be reimbursed for all actual and

3 necessary expenses and disbursements incurred in the execution

4 of their official duties.

5 (e) Moneys in ~~No moneys shall be expended from the Illinois~~

6 ~~Racing Quarter Horse Breeders Fund except as appropriated by~~

7 ~~the General Assembly. Moneys appropriated from~~ the Illinois

8 Racing Quarter Horse Breeders Fund shall be expended by the

9 Department of Agriculture, with the advice and assistance of

10 the Illinois Racing Quarter Horse Breeders Fund Advisory Board,

11 for the following purposes only:

12 (1) To provide stakes and awards to be paid to the

13 owners of the winning horses in certain races. This

14 provision is limited to Illinois conceived and foaled

15 horses.

16 (2) To provide an award to the owner or owners of an

17 Illinois conceived and foaled horse that wins a race when

18 pari-mutuel wagering is conducted; providing the race is

19 not restricted to Illinois conceived and foaled horses.

20 (3) To provide purse money for an Illinois stallion

21 stakes program.

22 (4) To provide for purses to be distributed for the

23 running of races during the Illinois State Fair and the

24 DuQuoin State Fair exclusively for quarter horses

25 conceived and foaled in Illinois.

26 (5) To provide for purses to be distributed for the

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1 running of races at Illinois county fairs exclusively for

2 quarter horses conceived and foaled in Illinois.

3 (6) To provide for purses to be distributed for running

4 races exclusively for quarter horses conceived and foaled

5 in Illinois at locations in Illinois determined by the

6 Department of Agriculture with advice and consent of the

7 Illinois Racing Quarter Horse Breeders Fund Advisory

8 Board.

9 (7) No less than 90% of all moneys appropriated from

10 the Illinois Racing Quarter Horse Breeders Fund shall be

11 expended for the purposes in items (1), (2), (3), (4), and

12 (5) of this subsection (e).

13 (8) To provide for research programs concerning the

14 health, development, and care of racing quarter horses.

15 (9) To provide for dissemination of public information

16 designed to promote the breeding of racing quarter horses

17 in Illinois.

18 (10) To provide for expenses incurred in the

19 administration of the Illinois Racing Quarter Horse

20 Breeders Fund.

21 (f) The Department of Agriculture shall, by rule, with the

22 advice and assistance of the Illinois Racing Quarter Horse

23 Breeders Fund Advisory Board:

24 (1) Qualify stallions for Illinois breeding; such

25 stallions to stand for service within the State of

26 Illinois, at the time of a foal's conception. Such stallion

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1 must not stand for service at any place outside the State

2 of Illinois during the calendar year in which the foal is

3 conceived. The Department of Agriculture may assess and

4 collect application fees for the registration of

5 Illinois-eligible stallions. All fees collected are to be

6 paid into the Illinois Racing Quarter Horse Breeders Fund.

7 (2) Provide for the registration of Illinois conceived

8 and foaled horses. No such horse shall compete in the races

9 limited to Illinois conceived and foaled horses unless it

10 is registered with the Department of Agriculture. The

11 Department of Agriculture may prescribe such forms as are

12 necessary to determine the eligibility of such horses. The

13 Department of Agriculture may assess and collect

14 application fees for the registration of Illinois-eligible

15 foals. All fees collected are to be paid into the Illinois

16 Racing Quarter Horse Breeders Fund. No person shall

17 knowingly prepare or cause preparation of an application

18 for registration of such foals that contains false

19 information.

20 (g) The Department of Agriculture, with the advice and

21 assistance of the Illinois Racing Quarter Horse Breeders Fund

22 Advisory Board, shall provide that certain races limited to

23 Illinois conceived and foaled be stakes races and determine the

24 total amount of stakes and awards to be paid to the owners of

25 the winning horses in such races.

26 (Source: P.A. 91-40, eff. 6-25-99; revised 10-18-12.)

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1 (230 ILCS 5/31) (from Ch. 8, par. 37-31)

2 Sec. 31. (a) The General Assembly declares that it is the

3 policy of this State to encourage the breeding of standardbred

4 horses in this State and the ownership of such horses by

5 residents of this State in order to provide for: sufficient

6 numbers of high quality standardbred horses to participate in

7 harness racing meetings in this State, and to establish and

8 preserve the agricultural and commercial benefits of such

9 breeding and racing industries to the State of Illinois. It is

10 the intent of the General Assembly to further this policy by

11 the provisions of this Section of this Act.

12 (b) Each organization licensee conducting a harness racing

13 meeting pursuant to this Act shall provide for at least two

14 races each race program limited to Illinois conceived and

15 foaled horses. A minimum of 6 races shall be conducted each

16 week limited to Illinois conceived and foaled horses. No horses

17 shall be permitted to start in such races unless duly

18 registered under the rules of the Department of Agriculture.

19 (b-5) Organization licensees, not including the Illinois

20 State Fair or the DuQuoin State Fair, shall provide stake races

21 and early closer races for Illinois conceived and foaled horses

22 so that purses distributed for such races shall be no less than

23 17% of total purses distributed for harness racing in that

24 calendar year in addition to any stakes payments and starting

25 fees contributed by horse owners.

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1 (b-10) Each organization licensee conducting a harness

2 racing meeting pursuant to this Act shall provide an owner

3 award to be paid from the purse account equal to 25% of the

4 amount earned by Illinois conceived and foaled horses in races

5 that are not restricted to Illinois conceived and foaled

6 horses. The owner awards shall not be paid on races below the

7 $10,000 claiming class.

8 (c) Conditions of races under subsection (b) shall be

9 commensurate with past performance, quality and class of

10 Illinois conceived and foaled horses available. If, however,

11 sufficient competition cannot be had among horses of that class

12 on any day, the races may, with consent of the Board, be

13 eliminated for that day and substitute races provided.

14 (d) There is hereby created a special fund of the State

15 Treasury to be known as the Illinois Standardbred Breeders

16 Fund.

17 During the calendar year 1981, and each year thereafter,

18 except as provided in subsection (g) of Section 27 of this Act,

19 eight and one-half per cent of all the monies received by the

20 State as privilege taxes on harness racing meetings shall be

21 paid into the Illinois Standardbred Breeders Fund.

22 (e) The Illinois Standardbred Breeders Fund shall be

23 administered by the Department of Agriculture with the

24 assistance and advice of the Advisory Board created in

25 subsection (f) of this Section.

26 (f) The Illinois Standardbred Breeders Fund Advisory Board

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1 is hereby created. The Advisory Board shall consist of the

2 Director of the Department of Agriculture, who shall serve as

3 Chairman; the Superintendent of the Illinois State Fair; a

4 member of the Illinois Racing Board, designated by it; a

5 representative of the Illinois Standardbred Owners and

6 Breeders Association, recommended by it; a representative of

7 the Illinois Association of Agricultural Fairs, recommended by

8 it, such representative to be from a fair at which Illinois

9 conceived and foaled racing is conducted; a representative of

10 the organization licensees conducting harness racing meetings,

11 recommended by them and a representative of the Illinois

12 Harness Horsemen's Association, recommended by it. Advisory

13 Board members shall serve for 2 years commencing January 1, of

14 each odd numbered year. If representatives of the Illinois

15 Standardbred Owners and Breeders Associations, the Illinois

16 Association of Agricultural Fairs, the Illinois Harness

17 Horsemen's Association, and the organization licensees

18 conducting harness racing meetings have not been recommended by

19 January 1, of each odd numbered year, the Director of the

20 Department of Agriculture shall make an appointment for the

21 organization failing to so recommend a member of the Advisory

22 Board. Advisory Board members shall receive no compensation for

23 their services as members but shall be reimbursed for all

24 actual and necessary expenses and disbursements incurred in the

25 execution of their official duties.

26 (g) No monies shall be expended from the Illinois

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1 Standardbred Breeders Fund except as appropriated by the

2 General Assembly. Monies appropriated from the Illinois

3 Standardbred Breeders Fund shall be expended by the Department

4 of Agriculture, with the assistance and advice of the Illinois

5 Standardbred Breeders Fund Advisory Board for the following

6 purposes only:

7 1. To provide purses for races limited to Illinois

8 conceived and foaled horses at the State Fairand the

9 DuQuoin State Fair.

10 2. To provide purses for races limited to Illinois

11 conceived and foaled horses at county fairs.

12 3. To provide purse supplements for races limited to

13 Illinois conceived and foaled horses conducted by

14 associations conducting harness racing meetings.

15 4. No less than 75% of all monies in the Illinois

16 Standardbred Breeders Fund shall be expended for purses in

17 1, 2 and 3 as shown above.

18 5. In the discretion of the Department of Agriculture

19 to provide awards to harness breeders of Illinois conceived

20 and foaled horses which win races conducted by organization

21 licensees conducting harness racing meetings. A breeder is

22 the owner of a mare at the time of conception. No more than

23 10% of all monies appropriated from the Illinois

24 Standardbred Breeders Fund shall be expended for such

25 harness breeders awards. No more than 25% of the amount

26 expended for harness breeders awards shall be expended for

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1 expenses incurred in the administration of such harness

2 breeders awards.

3 6. To pay for the improvement of racing facilities

4 located at the State Fair and County fairs.

5 7. To pay the expenses incurred in the administration

6 of the Illinois Standardbred Breeders Fund.

7 8. To promote the sport of harness racing, including

8 grants up to a maximum of $7,500 per fair per year for

9 conducting pari-mutuel wagering during the advertised

10 dates of a county fair.

11 9. To pay up to $50,000 annually for the Department of

12 Agriculture to conduct drug testing at county fairs racing

13 standardbred horses.

14 10. To pay up to $100,000 annually for distribution to

15 Illinois county fairs to supplement premiums offered in

16 junior classes.

17 11. To pay up to $100,000 annually for division and

18 equal distribution to the animal sciences department of

19 each Illinois public university system engaged in equine

20 research and education on or before the effective date of

21 this amendatory Act of the 98th General Assembly for equine

22 research and education.

23 (h) (Blank) ~~Whenever the Governor finds that the amount in~~

24 ~~the Illinois Standardbred Breeders Fund is more than the total~~

25 ~~of the outstanding appropriations from such fund, the Governor~~

26 ~~shall notify the State Comptroller and the State Treasurer of~~

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1 ~~such fact. The Comptroller and the State Treasurer, upon~~

2 ~~receipt of such notification, shall transfer such excess amount~~

3 ~~from the Illinois Standardbred Breeders Fund to the General~~

4 ~~Revenue Fund~~.

5 (i) A sum equal to 13% ~~12 1/2%~~ of the first prize money of

6 the gross ~~every~~purse won by an Illinois conceived and foaled

7 horse shall be paid 50%by the organization licensee conducting

8 the horse race meeting to the breeder of such winning horse

9 from the organization licensee's account and 50% from the purse

10 account of the licensee ~~share of the money wagered~~. Such

11 payment shall not reduce any award to the owner of the horse or

12 reduce the taxes payable under this Act. Such payment shall be

13 delivered by the organization licensee at the end of each

14 quarter ~~race meeting~~.

15 (j) The Department of Agriculture shall, by rule, with the

16 assistance and advice of the Illinois Standardbred Breeders

17 Fund Advisory Board:

18 1. Qualify stallions for Illinois Standardbred

19 Breeders Fund breeding~~; such stallion shall be owned by a~~

20 ~~resident of the State of Illinois or by an Illinois~~

21 ~~corporation all of whose shareholders, directors, officers~~

22 ~~and incorporators are residents of the State of Illinois~~.

23 Such stallion shall stand for service at and within the

24 State of Illinois at the time of a foal's conception, and

25 such stallion must not stand for service at any place~~, nor~~

26 ~~may semen from such stallion be transported,~~outside the

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1 State of Illinois during that calendar year in which the

2 foal is conceived ~~and that the owner of the stallion was~~

3 ~~for the 12 months prior, a resident of Illinois~~. Foals

4 conceived outside the State of Illinois from shipped semen

5 from a stallion qualified for breeders' awards under this

6 Section are not eligible to participate in the Illinois

7 conceived and foaled program.~~The articles of agreement of~~

8 ~~any partnership, joint venture, limited partnership,~~

9 ~~syndicate, association or corporation and any bylaws and~~

10 ~~stock certificates must contain a restriction that~~

11 ~~provides that the ownership or transfer of interest by any~~

12 ~~one of the persons a party to the agreement can only be~~

13 ~~made to a person who qualifies as an Illinois resident.~~

14 2. Provide for the registration of Illinois conceived

15 and foaled horses and no such horse shall compete in the

16 races limited to Illinois conceived and foaled horses

17 unless registered with the Department of Agriculture. The

18 Department of Agriculture may prescribe such forms as may

19 be necessary to determine the eligibility of such horses.

20 No person shall knowingly prepare or cause preparation of

21 an application for registration of such foals containing

22 false information. A mare (dam) must be in the state at

23 least 180 ~~30~~days prior to foaling or remain in the State

24 at least 30 days after ~~at the time of~~foaling. Beginning

25 with the 1996 breeding season and for foals of 1997 and

26 thereafter, a foal conceivedin the State of Illinois by

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1 transported fresh semen may be eligible for Illinois

2 conceived and foaled registration provided all breeding

3 and foaling requirements are met. The stallion must be

4 qualified for Illinois Standardbred Breeders Fund breeding

5 at the time of conception and the mare must be inseminated

6 within the State of Illinois. The foal must be dropped in

7 Illinois and properly registered with the Department of

8 Agriculture in accordance with this Act.

9 3. Provide that at least a 5 day racing program shall

10 be conducted at the State Fair each year, which program

11 shall include at least the following races limited to

12 Illinois conceived and foaled horses: (a) a two year old

13 Trot and Pace, and Filly Division of each; (b) a three year

14 old Trot and Pace, and Filly Division of each; (c) an aged

15 Trot and Pace, and Mare Division of each.

16 4. Provide for the payment of nominating, sustaining

17 and starting fees for races promoting the sport of harness

18 racing and for the races to be conducted at the State Fair

19 as provided in subsection (j) 3 of this Section provided

20 that the nominating, sustaining and starting payment

21 required from an entrant shall not exceed 2% of the purse

22 of such race. All nominating, sustaining and starting

23 payments shall be held for the benefit of entrants and

24 shall be paid out as part of the respective purses for such

25 races. Nominating, sustaining and starting fees shall be

26 held in trust accounts for the purposes as set forth in

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1 this Act and in accordance with Section 205-15 of the

2 Department of Agriculture Law (20 ILCS 205/205-15).

3 5. Provide for the registration with the Department of

4 Agriculture of Colt Associations or county fairs desiring

5 to sponsor races at county fairs.

6 6. Provide for the promotion of producing standardbred

7 racehorses by providing a bonus award program for owners of

8 2-year-old horses that win multiple major stakes races that

9 are limited to Illinois conceived and foaled horses.

10 (k) The Department of Agriculture, with the advice and

11 assistance of the Illinois Standardbred Breeders Fund Advisory

12 Board, may allocate monies for purse supplements for such

13 races. In determining whether to allocate money and the amount,

14 the Department of Agriculture shall consider factors,

15 including but not limited to, the amount of money appropriated

16 for the Illinois Standardbred Breeders Fund program, the number

17 of races that may occur, and an organizational licensee's purse

18 structure. The organizational licensee shall notify the

19 Department of Agriculture of the conditions and minimum purses

20 for races limited to Illinois conceived and foaled horses to be

21 conducted by each organizational licensee conducting a harness

22 racing meeting for which purse supplements have been

23 negotiated.

24 (l) All races held at county fairs and the State Fair which

25 receive funds from the Illinois Standardbred Breeders Fund

26 shall be conducted in accordance with the rules of the United

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1 States Trotting Association unless otherwise modified by the

2 Department of Agriculture.

3 (m) At all standardbred race meetings held or conducted

4 under authority of a license granted by the Board, and at all

5 standardbred races held at county fairs which are approved by

6 the Department of Agriculture or at the Illinois or DuQuoin

7 State Fairs, no one shall jog, train, warm up or drive a

8 standardbred horse unless he or she is wearing a protective

9 safety helmet, with the chin strap fastened and in place, which

10 meets the standards and requirements as set forth in the 1984

11 Standard for Protective Headgear for Use in Harness Racing and

12 Other Equestrian Sports published by the Snell Memorial

13 Foundation, or any standards and requirements for headgear the

14 Illinois Racing Board may approve. Any other standards and

15 requirements so approved by the Board shall equal or exceed

16 those published by the Snell Memorial Foundation. Any

17 equestrian helmet bearing the Snell label shall be deemed to

18 have met those standards and requirements.

19 (Source: P.A. 91-239, eff. 1-1-00.)

20 (230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)

21 Sec. 31.1. (a) Organization licensees collectively shall

22 contribute annually to charity the sum of $1,000,000~~$750,000~~

23 to non-profit organizations that provide medical and family,

24 counseling, and similar services to persons who reside or work

25 on the backstretch of Illinois racetracks. These contributions

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1 shall be collected as follows: (i) no later than July 1st of

2 each year the Board shall assess each organization licensee,

3 except those tracks which are not within 100 miles of each

4 other which tracks shall pay$40,000 ~~$30,000~~ annually apiece

5 into the Board charity fund, that amount which equals$920,000

6 ~~$690,000~~multiplied by the amount of pari-mutuel wagering

7 handled by the organization licensee in the year preceding

8 assessment and divided by the total pari-mutuel wagering

9 handled by all Illinois organization licensees, except those

10 tracks which are not within 100 miles of each other, in the

11 year preceding assessment; (ii) notice of the assessed

12 contribution shall be mailed to each organization licensee;

13 (iii) within thirty days of its receipt of such notice, each

14 organization licensee shall remit the assessed contribution to

15 the Board. If an organization licensee wilfully fails to so

16 remit the contribution, the Board may revoke its license to

17 conduct horse racing.

18 (b) No later than October 1st of each year, any qualified

19 charitable organization seeking an allotment of contributed

20 funds shall submit to the Board an application for those funds,

21 using the Board's approved form. No later than December 31st of

22 each year, the Board shall distribute all such amounts

23 collected that year to such charitable organization

24 applicants.

25 (Source: P.A. 87-110.)

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1 (230 ILCS 5/32.1)

2 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack

3 real estate equalization.

4 (a) In order to encourage new investment in Illinois

5 racetrack facilities and mitigate differing real estate tax

6 burdens among all racetracks, the licensees affiliated or

7 associated with each racetrack that has been awarded live

8 racing dates in the current year shall receive an immediate

9 pari-mutuel tax credit in an amount equal to the greater of (i)

10 50% of the amount of the real estate taxes paid in the prior

11 year attributable to that racetrack, or (ii) the amount by

12 which the real estate taxes paid in the prior year attributable

13 to that racetrack exceeds 60% of the average real estate taxes

14 paid in the prior year for all racetracks awarded live horse

15 racing meets in the current year.

16 Each year, regardless of whether the organization licensee

17 conducted live racing in the year of certification, the Board

18 shall certify in writing, prior to December 31, the real estate

19 taxes paid in that year for each racetrack and the amount of

20 the pari-mutuel tax credit that each organization licensee,

21 intertrack wagering licensee, and intertrack wagering location

22 licensee that derives its license from such racetrack is

23 entitled in the succeeding calendar year. The real estate taxes

24 considered under this Section for any racetrack shall be those

25 taxes on the real estate parcels and related facilities used to

26 conduct a horse race meeting and inter-track wagering at such

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1 racetrack under this Act. In no event shall the amount of the

2 tax credit under this Section exceed the amount of pari-mutuel

3 taxes otherwise calculated under this Act. The amount of the

4 tax credit under this Section shall be retained by each

5 licensee and shall not be subject to any reallocation or

6 further distribution under this Act. The Board may promulgate

7 emergency rules to implement this Section.

8 (b) Beginning on January 1 following the calendar year

9 during which an organization licensee begins conducting

10 electronic gaming operations pursuant to an electronic gaming

11 license issued under the Illinois Gambling Act, the

12 organization licensee shall be ineligible to receive a tax

13 credit under this Section.

14 (Source: P.A. 91-40, eff. 6-25-99.)

15 (230 ILCS 5/34.3 new)

16 Sec. 34.3. Drug testing. The Illinois Racing Board and the

17 Department of Agriculture shall jointly establish a program for

18 the purpose of conducting drug testing of horses at county

19 fairs and shall adopt any rules necessary for enforcement of

20 the program. The rules shall include appropriate penalties for

21 violations.

22 (230 ILCS 5/36) (from Ch. 8, par. 37-36)

23 Sec. 36. (a) Whoever administers or conspires to administer

24 to any horse a hypnotic, narcotic, stimulant, depressant or any

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1 chemical substance which may affect the speed of a horse at any

2 time in any race where the purse or any part of the purse is

3 made of money authorized by any Section of this Act, except

4 those chemical substances permitted by ruling of the Board,

5 internally, externally or by hypodermic method in a race or

6 prior thereto, or whoever knowingly enters a horse in any race

7 within a period of 24 hours after any hypnotic, narcotic,

8 stimulant, depressant or any other chemical substance which may

9 affect the speed of a horse at any time, except those chemical

10 substances permitted by ruling of the Board, has been

11 administered to such horse either internally or externally or

12 by hypodermic method for the purpose of increasing or retarding

13 the speed of such horse shall be guilty of a Class 4 felony.

14 The Board shall suspend or revoke such violator's license.

15 (b) The term "hypnotic" as used in this Section includes

16 all barbituric acid preparations and derivatives.

17 (c) The term "narcotic" as used in this Section includes

18 opium and all its alkaloids, salts, preparations and

19 derivatives, cocaine and all its salts, preparations and

20 derivatives and substitutes.

21 (d) The provisions of this Section 36 and the treatment

22 authorized herein apply to horses entered in and competing in

23 race meetings as defined in Section 3.07 of this Act and to

24 horses entered in and competing at any county fair.

25 (Source: P.A. 79-1185.)

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1 (230 ILCS 5/39.2 new)

2 Sec. 39.2. Prohibition of political contributions from

3 certain licensees and applicants.

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

5 protecting the integrity of both the electoral process and the

6 legislative process by preventing corruption and the

7 appearance of corruption which may arise through permitting

8 certain political campaign contributions by certain persons

9 involved in the horse racing industry and regulated by the

10 State. Unlike most other regulated industries, horse racing is

11 especially susceptible to corruption and potential criminal

12 influence. In Illinois, only licensed horse racing is legal and

13 all other such activities are strictly prohibited. Given these

14 circumstances, it is imperative to eliminate any potential

15 corrupt influence in the horse racing industry and the

16 electoral process.

17 Banning political campaign contributions by certain

18 persons subject to this Section to State officeholders and

19 candidates for such offices and to county and municipal

20 officeholders and candidates for such offices in counties and

21 municipalities that receive financial benefits from horse

22 racing is necessary to prevent corruption and the appearance of

23 corruption that may arise when political campaign

24 contributions and horse racing that is regulated by the State

25 and that confers benefits on counties and municipalities are

26 intermingled.

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1 (b) As used in this Section:

2 "Affiliated entity" means (i) any corporate parent and each

3 operating subsidiary of the business entity applying for or

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

5 corporate parent of the business entity applying for or holding

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

7 States Internal Revenue Service as a tax-exempt organization

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

9 1986 (or any successor provision of federal tax law)

10 established by one or more business entities seeking or holding

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

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

13 political committee for which the business entity applying for

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

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

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

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

18 applying for or holding a license shall be aggregated in

19 determining whether such political committee is an affiliated

20 entity.

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

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

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

24 executive employees of any such business entity, and (iii) the

25 spouse of the persons described in items (i) and (ii).

26 "Business entity" means any entity doing business for

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

2 proprietorship, limited liability company, or otherwise.

3 "Contribution" means a contribution as defined in Section

4 9-1.4 of the Election Code.

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

6 statement of candidacy and petition for nomination or election

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

8 the office of the appropriate election authority for any county

9 or municipality in which a race track is located.

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

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

12 officer or director of a business entity applying for or

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

14 who is required to register under the Lobbyist Registration

15 Act.

16 "License" means any organization, inter-track wagering,

17 inter-track wagering location, advance deposit wagering or

18 concessionaire license issued pursuant to this Act.

19 "Officeholder" means the Governor, Lieutenant Governor,

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

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

22 county or municipality in which a race track is located.

23 (c) Any person or business entity applying for or holding a

24 license, any affiliated entities or persons of such business

25 entity, any horsemen's association, and any entities or persons

26 soliciting a contribution or causing a contribution to be made

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1 on behalf of such person, business entity, or horsemen's

2 association, are prohibited from making any contribution to any

3 officeholder or declared candidate or any political committee

4 affiliated with any officeholder or declared candidate, as

5 defined in Section 9-1.8 of the Election Code. This prohibition

6 shall commence upon filing of an application for a license and

7 shall continue for a period of 2 years after termination,

8 suspension or revocation of the license.

9 The Board shall have authority to suspend, revoke, or

10 restrict the license and to impose civil penalties of up to

11 $100,000 for each violation of this subsection (c). A notice of

12 each such violation and the penalty imposed shall be published

13 on the Board's Internet website and in the Illinois Register.

14 Payments received by the State pursuant to this subsection

15 shall be deposited into the General Revenue Fund.

16 Any officeholder or declared candidate or any political

17 committee affiliated with any officeholder or declared

18 candidate that has received a contribution in violation of this

19 subsection (c) shall pay an amount equal to the value of the

20 contribution to the State no more than 30 days after notice of

21 the violation concerning the contribution appears in the

22 Illinois Register. Payments received by the State pursuant to

23 this subsection (c) shall be deposited into the General Revenue

24 Fund.

25 (d) The Board shall post on its website a list of all

26 persons, business entities, horsemen's associations, and

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1 affiliated entities prohibited from making contributions to

2 any officeholder or declared candidate political committee

3 pursuant to subsection (c), which list shall be updated and

4 published, at a minimum, every 6 months.

5 Any person, business entity, horsemen's association, or

6 affiliated entity prohibited from making contributions to any

7 officeholder or declared candidate political committee

8 pursuant to subsection (c) shall notify the Board within 7 days

9 after discovering any necessary change or addition to the

10 information relating to that person, business entity,

11 horsemen's association, or affiliated entity contained in the

12 list.

13 An individual who acts in good faith and in reliance on any

14 information contained in the list shall not be subject to any

15 penalties or liability imposed for a violation of this Section.

16 (e) If any provision of this Section is held invalid or its

17 application to any person or circumstance is held invalid, the

18 invalidity of that provision or application does not affect the

19 other provisions or applications of this Section that can be

20 given effect without the invalid application or provision.

21 (230 ILCS 5/40) (from Ch. 8, par. 37-40)

22 Sec. 40. (a) The imposition of any fine or penalty provided

23 in this Act shall not preclude the Board in its rules and

24 regulations from imposing a fine or penalty for any other

25 action which, in the Board's discretion, is a detriment or

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1 impediment to horse racing.

2 (b) The Director of Agriculture or his or her authorized

3 representative shall impose the following monetary penalties

4 and hold administrative hearings as required for failure to

5 submit the following applications, lists, or reports within the

6 time period, date or manner required by statute or rule or for

7 removing a foal from Illinois prior to inspection:

8 (1) late filing of a renewal application for offering

9 or standing stallion for service:

10 (A) if an application is submitted no more than 30

11 days late, $50;

12 (B) if an application is submitted no more than 45

13 days late, $150; or

14 (C) if an application is submitted more than 45

15 days late, if filing of the application is allowed

16 under an administrative hearing, $250;

17 (2) late filing of list or report of mares bred:

18 (A) if a list or report is submitted no more than

19 30 days late, $50;

20 (B) if a list or report is submitted no more than

21 60 days late $150; or

22 (C) if a list or report is submitted more than 60

23 days late, if filing of the list or report is allowed

24 under an administrative hearing, $250;

25 (3) filing an Illinois foaled thoroughbred mare status

26 report after the statutory deadline as provided in

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1 subsection (k) of Section 30 of this Act~~December 31~~:

2 (A) if a report is submitted no more than 30 days

3 late, $50;

4 (B) if a report is submitted no more than 90 days

5 late, $150;

6 (C) if a report is submitted no more than 150 days

7 late, $250; or

8 (D) if a report is submitted more than 150 days

9 late, if filing of the report is allowed under an

10 administrative hearing, $500;

11 (4) late filing of application for foal eligibility

12 certificate:

13 (A) if an application is submitted no more than 30

14 days late, $50;

15 (B) if an application is submitted no more than 90

16 days late, $150;

17 (C) if an application is submitted no more than 150

18 days late, $250; or

19 (D) if an application is submitted more than 150

20 days late, if filing of the application is allowed

21 under an administrative hearing, $500;

22 (5) failure to report the intent to remove a foal from

23 Illinois prior to inspection, identification and

24 certification by a Department of Agriculture investigator,

25 $50; and

26 (6) if a list or report of mares bred is incomplete,

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1 $50 per mare not included on the list or report.

2 Any person upon whom monetary penalties are imposed under

3 this Section 3 times within a 5 year period shall have any

4 further monetary penalties imposed at double the amounts set

5 forth above. All monies assessed and collected for violations

6 relating to thoroughbreds shall be paid into the Thoroughbred

7 Breeders Fund. All monies assessed and collected for violations

8 relating to standardbreds shall be paid into the Standardbred

9 Breeders Fund.

10 (Source: P.A. 87-397.)

11 (230 ILCS 5/54.75)

12 Sec. 54.75. Horse Racing Equity Trust Fund.

13 (a) There is created a Fund to be known as the Horse Racing

14 Equity Trust Fund, which is a non-appropriated trust fund held

15 separate and apart from State moneys. The Fund shall consist of

16 moneys paid into it by owners licensees under theIllinois

17 ~~Riverboat~~ Gambling Act for the purposes described in this

18 Section. The Fund shall be administered by the Board. Moneys in

19 the Fund shall be distributed as directed and certified by the

20 Board in accordance with the provisions of subsection (b).

21 (b) The moneys deposited into the Fund, plus any accrued

22 interest on those moneys, shall be distributed within 10 days

23 after those moneys are deposited into the Fund as follows:

24 (1) Sixty percent of all moneys distributed under this

25 subsection shall be distributed to organization licensees

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1 to be distributed at their race meetings as purses.

2 Fifty-seven percent of the amount distributed under this

3 paragraph (1) shall be distributed for thoroughbred race

4 meetings and 43% shall be distributed for standardbred race

5 meetings. Within each breed, moneys shall be allocated to

6 each organization licensee's purse fund in accordance with

7 the ratio between the purses generated for that breed by

8 that licensee during the prior calendar year and the total

9 purses generated throughout the State for that breed during

10 the prior calendar year by licensees in the current

11 calendar year.

12 (2) The remaining 40% of the moneys distributed under

13 this subsection (b) shall be distributed as follows:

14 (A) 11% shall be distributed to any person (or its

15 successors or assigns) who had operating control of a

16 racetrack that conducted live racing in 2002 at a

17 racetrack in a county with at least 230,000 inhabitants

18 that borders the Mississippi River and is a licensee in

19 the current year; and

20 (B) the remaining 89% shall be distributed pro rata

21 according to the aggregate proportion of total handle

22 from wagering on live races conducted in Illinois

23 (irrespective of where the wagers are placed) for

24 calendar years 2004 and 2005 to any person (or its

25 successors or assigns) who (i) had majority operating

26 control of a racing facility at which live racing was

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1 conducted in calendar year 2002, (ii) is a licensee in

2 the current year, and (iii) is not eligible to receive

3 moneys under subparagraph (A) of this paragraph (2).

4 The moneys received by an organization licensee

5 under this paragraph (2) shall be used by each

6 organization licensee to improve, maintain, market,

7 and otherwise operate its racing facilities to conduct

8 live racing, which shall include backstretch services

9 and capital improvements related to live racing and the

10 backstretch. Any organization licensees sharing common

11 ownership may pool the moneys received and spent at all

12 racing facilities commonly owned in order to meet these

13 requirements.

14 If any person identified in this paragraph (2) becomes

15 ineligible to receive moneys from the Fund, such amount

16 shall be redistributed among the remaining persons in

17 proportion to their percentages otherwise calculated.

18 (c) The Board shall monitor organization licensees to

19 ensure that moneys paid to organization licensees under this

20 Section are distributed by the organization licensees as

21 provided in subsection (b).

22 (Source: P.A. 95-1008, eff. 12-15-08.)

23 (230 ILCS 5/56 new)

24 Sec. 56. Electronic gaming.

25 (a) A person, firm, corporation, or limited liability

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1 company having operating control of a race track may apply to

2 the Gaming Board for an electronic gaming license. An

3 electronic gaming license shall authorize its holder to conduct

4 electronic gaming on the grounds of the race track controlled

5 by the licensee's race track. Only one electronic gaming

6 license may be awarded for any race track. A holder of an

7 electronic gaming license shall be subject to the Illinois

8 Gambling Act and rules of the Illinois Gaming Board concerning

9 electronic gaming. If the person, firm, corporation, or limited

10 liability company having operating control of a race track is

11 found by the Illinois Gaming Board to be unsuitable for an

12 electronic gaming license under the Illinois Gambling Act and

13 rules of the Gaming Board, that person, firm, corporation, or

14 limited liability company shall not be granted an electronic

15 gaming license. Each license shall specify the number of gaming

16 positions that its holder may operate.

17 An electronic gaming licensee may not permit persons under

18 21 years of age to be present in its electronic gaming

19 facility, but the licensee may accept wagers on live racing and

20 inter-track wagers at its electronic gaming facility.

21 (b) For purposes of this subsection, "adjusted gross

22 receipts" means an electronic gaming licensee's gross receipts

23 less winnings paid to wagerers and shall also include any

24 amounts that would otherwise be deducted pursuant to subsection

25 (a-9) of Section 13 of the Illinois Gambling Act. The adjusted

26 gross receipts by an electronic gaming licensee from electronic

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1 gaming remaining after the payment of taxes under Section 13 of

2 the Illinois Gambling Act shall be distributed as follows:

3 (1) Amounts shall be paid to the purse account at the

4 track at which the organization licensee is conducting

5 racing equal to the following:

6 12.75% of annual adjusted gross receipts up to and

7 including $75,000,000;

8 20% of annual adjusted gross receipts in excess of

9 $75,000,000 but not exceeding $100,000,000;

10 26.5% of annual adjusted gross receipts in excess

11 of $100,000,000 but not exceeding $125,000,000; and

12 20.5% of annual adjusted gross receipts in excess

13 of $125,000,000.

14 (2) The remainder shall be retained by the electronic

15 gaming licensee.

16 (c) Electronic gaming receipts placed into the purse

17 account of an organization licensee racing thoroughbred horses

18 shall be used for purses, for health care services or worker's

19 compensation for racing industry workers, for equine research,

20 for programs to care for and transition injured and retired

21 thoroughbred horses that race at the race track, or for horse

22 ownership promotion, in accordance with the agreement of the

23 horsemen's association representing the largest number of

24 owners and trainers who race at that organization licensee's

25 race meetings.

26 Annually, from the purse account of an organization

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1 licensee racing thoroughbred horses in this State, except for

2 in Madison County, an amount equal to 12% of the electronic

3 gaming receipts placed into the purse accounts shall be paid to

4 the Illinois Thoroughbred Breeders Fund and shall be used for

5 owner awards; a stallion program pursuant to paragraph (3) of

6 subsection (g) of Section 30 of this Act; and Illinois

7 conceived and foaled stakes races pursuant to paragraph (2) of

8 subsection (g) of Section 30 of this Act, as specifically

9 designated by the horsemen's association representing the

10 largest number of owners and trainers who race at the

11 organization licensee's race meetings.

12 Annually, from the purse account of an organization

13 licensee racing thoroughbred horses in Madison County, an

14 amount equal to 10% of the electronic gaming receipts placed

15 into the purse accounts shall be paid to the Illinois

16 Thoroughbred Breeders Fund and shall be used for owner awards;

17 a stallion program pursuant to paragraph (3) of subsection (g)

18 of Section 30 of this Act; and Illinois conceived and foaled

19 stakes races pursuant to paragraph (2) of subsection (g) of

20 Section 30 of this Act, as specifically designated by the

21 horsemen's association representing the largest number of

22 owners and trainers who race at the organization licensee's

23 race meetings.

24 Annually, from the purse account of an organization

25 licensee conducting thoroughbred races at a race track in

26 Madison County, an amount equal to 1% of the electronic gaming

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1 receipts distributed to purses per subsection (b) of this

2 Section 56 shall be paid as follows: 0.33 1/3% to Southern

3 Illinois University Department of Animal Sciences for equine

4 research and education, an amount equal to 0.33 1/3% of the

5 electronic gaming receipts shall be used to operate laundry

6 facilities or a kitchen for backstretch workers at that race

7 track, and an amount equal to 0.33 1/3% of the electronic

8 gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)

9 non-profit organization that cares for injured and unwanted

10 horses that race at that race track.

11 Annually, from the purse account of organization licensees

12 conducting thoroughbred races at race tracks in Cook County,

13 $100,000 shall be paid for division and equal distribution to

14 the animal sciences department of each Illinois public

15 university system engaged in equine research and education on

16 or before the effective date of this amendatory Act of the 98th

17 General Assembly for equine research and education.

18 (d) Annually, from the purse account of an organization

19 licensee racing standardbred horses, an amount equal to 15% of

20 the electronic gaming receipts placed into that purse account

21 shall be paid to the Illinois Colt Stakes Purse Distribution

22 Fund. Moneys deposited into the Illinois Colt Stakes Purse

23 Distribution Fund shall be used for standardbred racing as

24 authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of

25 subsection (g) of Section 31 of this Act and for bonus awards

26 as authorized under paragraph 6 of subsection (j) of Section 31

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1 of this Act.

2 (e) The Illinois Gaming Board shall submit a report to the

3 General Assembly on or before December 31, 2014 that examines

4 the feasibility of conducting electronic gaming at the Illinois

5 State Fairgrounds in Sangamon County. At a minimum, this report

6 shall analyze the projected revenues that will be generated,

7 the potential for cannibalization of existing riverboats,

8 casinos, or other electronic gaming facilities, and the

9 potential detriment to the surrounding area and its population.

10 The report shall include the Illinois Gaming Board's findings

11 together with appropriate recommendations for legislative

12 action.

13 Section 90-40. The Riverboat Gambling Act is amended by

14 changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,

15 11.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,

16 and 24 and by adding Sections 5.3, 7.6, 7.7, 7.8, 7.9, 7.10,

17 7.11, 7.12, 13.2, and 18.2 as follows:

18 (230 ILCS 10/1) (from Ch. 120, par. 2401)

19 Sec. 1. Short title. This Act shall be known and may be

20 cited as theIllinois ~~Riverboat~~ Gambling Act.

21 (Source: P.A. 86-1029.)

22 (230 ILCS 10/2) (from Ch. 120, par. 2402)

23 Sec. 2. Legislative Intent.

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1 (a) This Act is intended to benefit the people of the State

2 of Illinois by assisting economic development, ~~and~~ promoting

3 Illinois tourism,and~~by~~ increasing the amount of revenues

4 available to the State to assist and support education, and to

5 defray State expenses, including unpaid bills.

6 (b) While authorization of riverboat and casino gambling

7 will enhance investment,beautification, development and

8 tourism in Illinois, it is recognized that it will do so

9 successfully only if public confidence and trust in the

10 credibility and integrity of the gambling operations and the

11 regulatory process is maintained. Therefore, regulatory

12 provisions of this Act are designed to strictly regulate the

13 facilities, persons, associations and practices related to

14 gambling operations pursuant to the police powers of the State,

15 including comprehensive law enforcement supervision.

16 (c) The Illinois Gaming Board established under this Act

17 should, as soon as possible, inform each applicant for an

18 owners license of the Board's intent to grant or deny a

19 license.

20 (Source: P.A. 93-28, eff. 6-20-03.)

21 (230 ILCS 10/3) (from Ch. 120, par. 2403)

22 Sec. 3. ~~Riverboat~~ Gambling Authorized.

23 (a) Riverboat and casinogambling operationsand

24 electronic gaming operations ~~and the system of wagering~~

25 ~~incorporated therein~~, as defined in this Act, are hereby

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1 authorized to the extent that they are carried out in

2 accordance with the provisions of this Act.

3 (b) This Act does not apply to the pari-mutuel system of

4 wagering used or intended to be used in connection with the

5 horse-race meetings as authorized under the Illinois Horse

6 Racing Act of 1975, lottery games authorized under the Illinois

7 Lottery Law, bingo authorized under the Bingo License and Tax

8 Act, charitable games authorized under the Charitable Games Act

9 or pull tabs and jar games conducted under the Illinois Pull

10 Tabs and Jar Games Act.This Act applies to electronic gaming

11 authorized under the Illinois Horse Racing Act of 1975 to the

12 extent provided in that Act and in this Act.

13 (c) Riverboat gambling conducted pursuant to this Act may

14 be authorized upon any water within the State of Illinois or

15 any water other than Lake Michigan which constitutes a boundary

16 of the State of Illinois.Notwithstanding any provision in this

17 subsection (c) to the contrary, a licensee that receives its

18 license pursuant to subsection (e-5) of Section 7 may conduct

19 riverboat gambling on Lake Michigan from a home dock located on

20 Lake Michigan subject to any limitations contained in Section

21 7. Notwithstanding any provision in this subsection (c) to the

22 contrary, a licensee may conduct gambling at its home dock

23 facility as provided in Sections 7 and 11. A licensee may

24 conduct riverboat gambling authorized under this Act

25 regardless of whether it conducts excursion cruises. A licensee

26 may permit the continuous ingress and egress of passengers for

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1 the purpose of gambling.

2 (d) Gambling that is conducted in accordance with this Act

3 using slot machines and video games of chance and other

4 electronic gambling games as defined in both the Illinois

5 Gambling Act and the Illinois Horse Racing Act of 1975 is

6 authorized.

7 (Source: P.A. 91-40, eff. 6-25-99.)

8 (230 ILCS 10/4) (from Ch. 120, par. 2404)

9 Sec. 4. Definitions. As used in this Act:

10 ~~(a)~~ "Board" means the Illinois Gaming Board.

11 ~~(b)~~ "Occupational license" means a license issued by the

12 Board to a person or entity to perform an occupation which the

13 Board has identified as requiring a license to engage in

14 riverboat gambling, casino gambling, or electronic gaming in

15 Illinois.

16 ~~(c)~~ "Gambling game" includes, but is not limited to,

17 baccarat, twenty-one, poker, craps, slot machine, video game of

18 chance, roulette wheel, klondike table, punchboard, faro

19 layout, keno layout, numbers ticket, push card, jar ticket, or

20 pull tab which is authorized by the Board as a wagering device

21 under this Act.

22 ~~(d)~~"Riverboat" means a self-propelled excursion boat, a

23 permanently moored barge, or permanently moored barges that are

24 permanently fixed together to operate as one vessel, on which

25 lawful gambling is authorized and licensed as provided in this

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1 Act.

2 "Slot machine" means any mechanical, electrical, or other

3 device, contrivance, or machine that is authorized by the Board

4 as a wagering device under this Act which, upon insertion of a

5 coin, currency, token, or similar object therein, or upon

6 payment of any consideration whatsoever, is available to play

7 or operate, the play or operation of which may deliver or

8 entitle the person playing or operating the machine to receive

9 cash, premiums, merchandise, tokens, or anything of value

10 whatsoever, whether the payoff is made automatically from the

11 machine or in any other manner whatsoever. A slot machine:

12 (1) may utilize spinning reels or video displays or

13 both;

14 (2) may or may not dispense coins, tickets, or tokens

15 to winning patrons;

16 (3) may use an electronic credit system for receiving

17 wagers and making payouts; and

18 (4) may simulate a table game.

19 "Slot machine" does not include table games authorized by

20 the Board as a wagering device under this Act.

21 ~~(e)~~ "Managers license" means a license issued by the Board

22 to a person or entity to manage gambling operations conducted

23 by the State pursuant to Section 7.3.

24 ~~(f)~~ "Dock" means the location where a riverboat moors for

25 the purpose of embarking passengers for and disembarking

26 passengers from the riverboat.

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1 ~~(g)~~ "Gross receipts" means the total amount of money

2 exchanged for the purchase of chips, tokens, or electronic

3 cards by riverboat patrons.

4 ~~(h)~~"Adjusted gross receipts" means the gross receipts less

5 winnings paid to wagerers.

6 ~~(i)~~ "Cheat" means to alter the selection of criteria which

7 determine the result of a gambling game or the amount or

8 frequency of payment in a gambling game.

9 ~~(j) (Blank).~~

10 ~~(k)~~ "Gambling operation" means the conduct of ~~authorized~~

11 gambling games authorized under this Actupon a riverboator in

12 a casino or authorized under this Act and the Illinois Horse

13 Racing Act of 1975 at an electronic gaming facility.

14 ~~(l)~~ "License bid" means the lump sum amount of money that

15 an applicant bids and agrees to pay the State in return for an

16 owners license that is issued orre-issued on or after July 1,

17 2003.

18 "Table game" means a live gaming apparatus upon which

19 gaming is conducted or that determines an outcome that is the

20 object of a wager, including, but not limited to, baccarat,

21 twenty-one, blackjack, poker, craps, roulette wheel, klondike

22 table, punchboard, faro layout, keno layout, numbers ticket,

23 push card, jar ticket, pull tab, or other similar games that

24 are authorized by the Board as a wagering device under this

25 Act. "Table game" does not include slot machines or video games

26 of chance.

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1 ~~(m)~~ The terms "minority person", "female", and "person with

2 a disability" shall have the same meaning as defined in Section

3 2 of the Business Enterprise for Minorities, Females, and

4 Persons with Disabilities Act.

5 "Authority" means the Chicago Casino Development

6 Authority.

7 "Casino" means a facility at which lawful gambling is

8 authorized as provided in this Act.

9 "Owners license" means a license to conduct riverboat or

10 casino gambling operations, but does not include an electronic

11 gaming license.

12 "Licensed owner" means a person who holds an owners

13 license.

14 "Electronic gaming" means slot machine gambling, video

15 game of chance gambling, or gambling with electronic gambling

16 games as defined in the Illinois Gambling Act or defined by the

17 Board that is conducted at a race track pursuant to an

18 electronic gaming license.

19 "Electronic gaming facility" means the area where the Board

20 has authorized electronic gaming at a race track of an

21 organization licensee under the Illinois Horse Racing Act of

22 1975 that holds an electronic gaming license.

23 "Electronic gaming license" means a license issued by the

24 Board under Section 7.6 of this Act authorizing electronic

25 gaming at an electronic gaming facility.

26 "Electronic gaming licensee" means an entity that holds an

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1 electronic gaming license.

2 "Organization licensee" means an entity authorized by the

3 Illinois Racing Board to conduct pari-mutuel wagering in

4 accordance with the Illinois Horse Racing Act of 1975. With

5 respect only to electronic gaming, "organization licensee"

6 includes the authorization for electronic gaming created under

7 subsection (a) of Section 56 of the Illinois Horse Racing Act

8 of 1975.

9 "Casino operator license" means the license held by the

10 person or entity selected by the Authority to manage and

11 operate a riverboat or casino within the geographic area of the

12 authorized municipality pursuant to this Act and the Chicago

13 Casino Development Authority Act.

14 (Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)

15 (230 ILCS 10/5) (from Ch. 120, par. 2405)

16 Sec. 5. Gaming Board.

17 (a) (1) There is hereby established the Illinois Gaming

18 Board, which shall have the powers and duties specified in this

19 Act and in the Chicago Casino Development Authority Act, and

20 all other powers necessary and proper to fully and effectively

21 execute this Act for the purpose of administering, regulating,

22 and enforcing the system of riverboat and casino gambling and

23 electronic gaming established by this Act and by the Chicago

24 Casino Development Authority Act. Its jurisdiction shall

25 extend under this Act and the Chicago Casino Development

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1 Authority Actto every person, association, corporation,

2 partnership and trust involved in riverboat and casinogambling

3 operations and electronic gaming in the State of Illinois.

4 (2) The Board shall consist of 5 members to be appointed by

5 the Governor with the advice and consent of the Senate, one of

6 whom shall be designated by the Governor to bechairperson

7 ~~chairman~~. Each member shall have a reasonable knowledge of the

8 practice, procedure and principles of gambling operations.

9 Each member shall either be a resident of Illinois or shall

10 certify that he or shewill become a resident of Illinois

11 before taking office.

12 On and after the effective date of this amendatory Act of

13 the 98th General Assembly, new appointees to the Board must

14 include the following:

15 (A) One member who has received, at a minimum, a

16 bachelor's degree from an accredited school and at least 10

17 years of verifiable training and experience in the fields

18 of investigation and law enforcement.

19 (B) One member who is a certified public accountant

20 with experience in auditing and with knowledge of complex

21 corporate structures and transactions.

22 (C) One member who has 5 years' experience as a

23 principal, senior officer, or director of a company or

24 business with either material responsibility for the daily

25 operations and management of the overall company or

26 business or material responsibility for the policy making

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1 of the company or business.

2 (D) One member who is a lawyer licensed to practice law

3 in Illinois.

4 Notwithstanding any provision of this subsection (a), the

5 requirements of subparagraphs (A) through (D) of this paragraph

6 (2) shall not apply to any person reappointed pursuant to

7 paragraph (3).

8 No more than 3 members of the Board may be from the same

9 political party. The Board should reflect the ethnic, cultural,

10 and geographic diversity of the State. No Board member shall,

11 within a period of one year immediately preceding nomination,

12 have been employed or received compensation or fees for

13 services from a person or entity, or its parent or affiliate,

14 that has engaged in business with the Board, a licensee, or a

15 licensee under the Illinois Horse Racing Act of 1975. Board

16 members must publicly disclose all prior affiliations with

17 gaming interests, including any compensation, fees, bonuses,

18 salaries, and other reimbursement received from a person or

19 entity, or its parent or affiliate, that has engaged in

20 business with the Board, a licensee, or a licensee under the

21 Illinois Horse Racing Act of 1975. This disclosure must be made

22 within 30 days after nomination but prior to confirmation by

23 the Senate and must be made available to the members of the

24 Senate. ~~At least one member shall be experienced in law~~

25 ~~enforcement and criminal investigation, at least one member~~

26 ~~shall be a certified public accountant experienced in~~

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1 ~~accounting and auditing, and at least one member shall be a~~

2 ~~lawyer licensed to practice law in Illinois.~~

3 (3) The terms of office of the Board members shall be 3

4 years, except that the terms of office of the initial Board

5 members appointed pursuant to this Act will commence from the

6 effective date of this Act and run as follows: one for a term

7 ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for

8 a term ending July 1, 1993. Upon the expiration of the

9 foregoing terms, the successors of such members shall serve a

10 term for 3 years and until their successors are appointed and

11 qualified for like terms. Vacancies in the Board shall be

12 filled for the unexpired term in like manner as original

13 appointments. Each member of the Board shall be eligible for

14 reappointment at the discretion of the Governor with the advice

15 and consent of the Senate.

16 (4) Each member of the Board shall receive $300 for each

17 day the Board meets and for each day the member conducts any

18 hearing pursuant to this Act. Each member of the Board shall

19 also be reimbursed for all actual and necessary expenses and

20 disbursements incurred in the execution of official duties.

21 (5) No person shall be appointed a member of the Board or

22 continue to be a member of the Board who is, or whose spouse,

23 child or parent is, a member of the board of directors of, or a

24 person financially interested in, any gambling operation

25 subject to the jurisdiction of this Board, or any race track,

26 race meeting, racing association or the operations thereof

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1 subject to the jurisdiction of the Illinois Racing Board. No

2 Board member shall hold any other public office. No person

3 shall be a member of the Board who is not of good moral

4 character or who has been convicted of, or is under indictment

5 for, a felony under the laws of Illinois or any other state, or

6 the United States.

7 (5.5) No member of the Board shall engage in any political

8 activity. For the purposes of this Section, "political" means

9 any activity in support of or in connection with any campaign

10 for federal, State, or local elective office or any political

11 organization, but does not include activities (i) relating to

12 the support or opposition of any executive, legislative, or

13 administrative action (as those terms are defined in Section 2

14 of the Lobbyist Registration Act), (ii) relating to collective

15 bargaining, or (iii) that are otherwise in furtherance of the

16 person's official State duties or governmental and public

17 service functions.

18 (6) Any member of the Board may be removed by the Governor

19 for neglect of duty, misfeasance, malfeasance, or nonfeasance

20 in office or for engaging in any political activity.

21 (7) Before entering upon the discharge of the duties of his

22 office, each member of the Board shall take an oath that he

23 will faithfully execute the duties of his office according to

24 the laws of the State and the rules and regulations adopted

25 therewith and shall give bond to the State of Illinois,

26 approved by the Governor, in the sum of $25,000. Every such

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1 bond, when duly executed and approved, shall be recorded in the

2 office of the Secretary of State. Whenever the Governor

3 determines that the bond of any member of the Board has become

4 or is likely to become invalid or insufficient, he shall

5 require such member forthwith to renew his bond, which is to be

6 approved by the Governor. Any member of the Board who fails to

7 take oath and give bond within 30 days from the date of his

8 appointment, or who fails to renew his bond within 30 days

9 after it is demanded by the Governor, shall be guilty of

10 neglect of duty and may be removed by the Governor. The cost of

11 any bond given by any member of the Board under this Section

12 shall be taken to be a part of the necessary expenses of the

13 Board.

14 (8) The Board shall employ such personnel as may be

15 necessary to carry out its functions and shall determine the

16 salaries of all personnel, except those personnel whose

17 salaries are determined under the terms of a collective

18 bargaining agreement. No person shall be employed to serve the

19 Board who is, or whose spouse, parent or child is, an official

20 of, or has a financial interest in or financial relation with,

21 any operator engaged in gambling operations within this State

22 or any organization engaged in conducting horse racing within

23 this State.For the one year immediately preceding employment,

24 an employee shall not have been employed or received

25 compensation or fees for services from a person or entity, or

26 its parent or affiliate, that has engaged in business with the

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1 Board, a licensee, or a licensee under the Illinois Horse

2 Racing Act of 1975. Any employee violating these prohibitions

3 shall be subject to termination of employment.In addition, all

4 Board members and employees are subject to the restrictions set

5 forth in Section 5-45 of the State Officials and Employees

6 Ethics Act.

7 (9) An Administrator shall perform any and all duties that

8 the Board shall assign him. The salary of the Administrator

9 shall be determined by the Board and, in addition, he shall be

10 reimbursed for all actual and necessary expenses incurred by

11 him in discharge of his official duties. The Administrator

12 shall keep records of all proceedings of the Board and shall

13 preserve all records, books, documents and other papers

14 belonging to the Board or entrusted to its care. The

15 Administrator shall devote his full time to the duties of the

16 office and shall not hold any other office or employment.

17 (b) The Board shall have general responsibility for the

18 implementation of this Act. Its duties include, without

19 limitation, the following:

20 (1) To decide promptly and in reasonable order all

21 license applications. Any party aggrieved by an action of

22 the Board denying, suspending, revoking, restricting or

23 refusing to renew a license may request a hearing before

24 the Board. A request for a hearing must be made to the

25 Board in writing within 5 days after service of notice of

26 the action of the Board. Notice of the action of the Board

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1 shall be served either by personal delivery or by certified

2 mail, postage prepaid, to the aggrieved party. Notice

3 served by certified mail shall be deemed complete on the

4 business day following the date of such mailing. The Board

5 shall conduct all requested hearings promptly and in

6 reasonable order;

7 (2) To conduct all hearings pertaining to civil

8 violations of this Act or rules and regulations promulgated

9 hereunder;

10 (3) To promulgate such rules and regulations as in its

11 judgment may be necessary to protect or enhance the

12 credibility and integrity of gambling operations

13 authorized by this Act and the regulatory process

14 hereunder;

15 (4) To provide for the establishment and collection of

16 all license and registration fees and taxes imposed by this

17 Act and the rules and regulations issued pursuant hereto.

18 All such fees and taxes shall be deposited into the State

19 Gaming Fund;

20 (5) To provide for the levy and collection of penalties

21 and fines for the violation of provisions of this Act and

22 the rules and regulations promulgated hereunder. All such

23 fines and penalties shall be deposited into the Education

24 Assistance Fund, created by Public Act 86-0018, of the

25 State of Illinois;

26 (6) To be present through its inspectors and agents any

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1 time gambling operations are conducted on any riverboat, in

2 any casino, or at any electronic gaming facility for the

3 purpose of certifying the revenue thereof, receiving

4 complaints from the public, and conducting such other

5 investigations into the conduct of the gambling games and

6 the maintenance of the equipment as from time to time the

7 Board may deem necessary and proper;

8 (7) To review and rule upon any complaint by a licensee

9 regarding any investigative procedures of the State which

10 are unnecessarily disruptive of gambling operations. The

11 need to inspect and investigate shall be presumed at all

12 times. The disruption of a licensee's operations shall be

13 proved by clear and convincing evidence, and establish

14 that: (A) the procedures had no reasonable law enforcement

15 purposes, and (B) the procedures were so disruptive as to

16 unreasonably inhibit gambling operations;

17 (8) To hold at least one meeting each quarter of the

18 fiscal year. In addition, special meetings may be called by

19 the Chairman or any 2 Board members upon 72 hours written

20 notice to each member. All Board meetings shall be subject

21 to the Open Meetings Act. Three members of the Board shall

22 constitute a quorum, and 3 votes shall be required for any

23 final determination by the Board. The Board shall keep a

24 complete and accurate record of all its meetings. A

25 majority of the members of the Board shall constitute a

26 quorum for the transaction of any business, for the

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1 performance of any duty, or for the exercise of any power

2 which this Act requires the Board members to transact,

3 perform or exercise en banc, except that, upon order of the

4 Board, one of the Board members or an administrative law

5 judge designated by the Board may conduct any hearing

6 provided for under this Act or by Board rule and may

7 recommend findings and decisions to the Board. The Board

8 member or administrative law judge conducting such hearing

9 shall have all powers and rights granted to the Board in

10 this Act. The record made at the time of the hearing shall

11 be reviewed by the Board, or a majority thereof, and the

12 findings and decision of the majority of the Board shall

13 constitute the order of the Board in such case;

14 (9) To maintain records which are separate and distinct

15 from the records of any other State board or commission.

16 Such records shall be available for public inspection and

17 shall accurately reflect all Board proceedings;

18 (10) To file a written annual report with the Governor

19 on or before March 1 each year and such additional reports

20 as the Governor may request. The annual report shall

21 include a statement of receipts and disbursements by the

22 Board, actions taken by the Board, and any additional

23 information and recommendations which the Board may deem

24 valuable or which the Governor may request;

25 (11) (Blank);

26 (12) (Blank);

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1 (13) To assume responsibility for administration and

2 enforcement of the Video Gaming Act;~~and~~

3 (13.1) To assume responsibility for the administration

4 and enforcement of operations at electronic gaming

5 facilities pursuant to this Act and the Illinois Horse

6 Racing Act of 1975;

7 (13.2) To assume responsibility for the administration

8 and enforcement of gambling operations at the Chicago

9 Casino Development Authority's casino pursuant to this Act

10 and the Chicago Casino Development Authority Act; and

11 (14) To adopt, by rule, a code of conduct governing

12 Board members and employees that ensure, to the maximum

13 extent possible, that persons subject to this Code avoid

14 situations, relationships, or associations that may

15 represent or lead to a conflict of interest.

16 Internal controls and changes submitted by licensees must

17 be reviewed and either approved or denied with cause within 90

18 days after receipt of submission is deemed final by the

19 Illinois Gaming Board. In the event an internal control

20 submission or change does not meet the standards set by the

21 Board, staff of the Board must provide technical assistance to

22 the licensee to rectify such deficiencies within 90 days after

23 the initial submission and the revised submission must be

24 reviewed and approved or denied with cause within 90 days after

25 the date the revised submission is deemed final by the Board.

26 For the purposes of this paragraph, "with cause" means that the

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1 approval of the submission would jeopardize the integrity of

2 gaming. In the event the Board staff has not acted within the

3 timeframe, the submission shall be deemed approved.

4 (c) The Board shall have jurisdiction over and shall

5 supervise all gambling operations governed by this Actand the

6 Chicago Casino Development Authority Act. The Board shall have

7 all powers necessary and proper to fully and effectively

8 execute the provisions of this Actand the Chicago Casino

9 Development Authority Act, including, but not limited to, the

10 following:

11 (1) To investigate applicants and determine the

12 eligibility of applicants for licenses and to select among

13 competing applicants the applicants which best serve the

14 interests of the citizens of Illinois.

15 (2) To have jurisdiction and supervision over all

16 ~~riverboat~~gambling operationsauthorized under this Act

17 and the Chicago Casino Development Authority Act ~~in this~~

18 ~~State~~ and all persons in places ~~on riverboats~~ where

19 gambling operations are conducted.

20 (3) To promulgate rules and regulations for the purpose

21 of administering the provisions of this Actand the Chicago

22 Casino Development Authority Act and to prescribe rules,

23 regulations and conditions under which all~~riverboat~~

24 gambling operations subject to this Act and the Chicago

25 Casino Development Authority Act ~~in the State~~shall be

26 conducted. Such rules and regulations are to provide for

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1 the prevention of practices detrimental to the public

2 interest and for the best interests of~~riverboat~~ gambling,

3 including rules and regulations regarding the inspection

4 of electronic gaming facilities, casinos, and ~~such~~

5 riverboats,and the review of any permits or licenses

6 necessary to operate a riverboat, casino, or electronic

7 gaming facilitiesunder any laws or regulations applicable

8 to riverboats, casinos, or electronic gaming facilities

9 and to impose penalties for violations thereof.

10 (4) To enter the office, riverboats, casinos,

11 electronic gaming facilities, and other facilities, or

12 other places of business of a licensee, where evidence of

13 the compliance or noncompliance with the provisions of this

14 Act and the Chicago Casino Development Authority Act is

15 likely to be found.

16 (5) To investigate alleged violations of this Act, the

17 Chicago Casino Development Authority Act,or the rules of

18 the Board and to take appropriate disciplinary action

19 against a licensee or a holder of an occupational license

20 for a violation, or institute appropriate legal action for

21 enforcement, or both.

22 (6) To adopt standards for the licensing of all persons

23 and entities under this Act and the Chicago Casino

24 Development Authority Act, as well as for electronic or

25 mechanical gambling games, and to establish fees for such

26 licenses.

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1 (7) To adopt appropriate standards for all electronic

2 gaming facilities, riverboats, casinos,andother

3 facilities authorized under this Act and the Chicago Casino

4 Development Authority Act.

5 (8) To require that the records, including financial or

6 other statements of any licensee under this Actand the

7 Chicago Casino Development Authority Act, shall be kept in

8 such manner as prescribed by the Board and that any such

9 licensee involved in the ownership or management of

10 gambling operations submit to the Board an annual balance

11 sheet and profit and loss statement, list of the

12 stockholders or other persons having a 1% or greater

13 beneficial interest in the gambling activities of each

14 licensee, and any other information the Board deems

15 necessary in order to effectively administer this Act and

16 the Chicago Casino Development Authority Actand all rules,

17 regulations, orders and final decisions promulgated under

18 this Act and the Chicago Casino Development Authority Act.

19 (9) To conduct hearings, issue subpoenas for the

20 attendance of witnesses and subpoenas duces tecum for the

21 production of books, records and other pertinent documents

22 in accordance with the Illinois Administrative Procedure

23 Act, and to administer oaths and affirmations to the

24 witnesses, when, in the judgment of the Board, it is

25 necessary to administer or enforce this Act, the Chicago

26 Casino Development Authority Act, or the Board rules.

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1 (10) To prescribe a form to be used by any licensee

2 involved in the ownership or management of gambling

3 operations as an application for employment for their

4 employees.

5 (11) To revoke or suspend licenses, other than the

6 license issued to the Chicago Casino Development

7 Authority,as the Board may see fit and in compliance with

8 applicable laws of the State regarding administrative

9 procedures, and to review applications for the renewal of

10 licenses. The Board may suspend an owners license(other

11 than the license issued to the Chicago Casino Development

12 Authority), electronic gaming license, or casino operator

13 license, without notice or hearing upon a determination

14 that the safety or health of patrons or employees is

15 jeopardized by continuing a gambling operation conducted

16 under that license ~~riverboat's operation~~. The suspension

17 may remain in effect until the Board determines that the

18 cause for suspension has been abated. The Board may revoke

19 an ~~the~~ owners license (other than the license issued to the

20 Chicago Casino Development Authority), electronic gaming

21 license, or casino operator licenseupon a determination

22 that the licensee ~~owner~~ has not made satisfactory progress

23 toward abating the hazard.

24 (12) To eject or exclude or authorize the ejection or

25 exclusion of, any person from~~riverboat~~ gambling

26 facilities where that ~~such~~person is in violation of this

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1 Act or the Chicago Casino Development Authority Act, rules

2 and regulations thereunder, or final orders of the Board,

3 or where such person's conduct or reputation is such that

4 his or herpresence within the~~riverboat~~ gambling

5 facilities may, in the opinion of the Board, call into

6 question the honesty and integrity of the gambling

7 operations or interfere with the orderly conduct thereof;

8 provided that the propriety of such ejection or exclusion

9 is subject to subsequent hearing by the Board.

10 (13) To require all licensees of gambling operations to

11 utilize a cashless wagering system whereby all players'

12 money is converted to tokens, electronic cards, or chips

13 which shall be used only for wagering in the gambling

14 establishment.

15 (14) (Blank).

16 (15) To suspend, revoke or restrict licenses, other

17 than the license issued to the Chicago Casino Development

18 Authority,to require the removal of a licensee or an

19 employee of a licensee for a violation of this Act, the

20 Chicago Casino Development Authority Act, or a Board rule

21 or for engaging in a fraudulent practice, and to impose

22 civil penalties of up to $5,000 against individuals and up

23 to $10,000 or an amount equal to the daily gross receipts,

24 whichever is larger, against licensees for each violation

25 of any provision of the Act, the Chicago Casino Development

26 Authority Act,any rules adopted by the Board, any order of

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1 the Board or any other action which, in the Board's

2 discretion, is a detriment or impediment to ~~riverboat~~

3 gambling operations.

4 (16) To hire employees to gather information, conduct

5 investigations and carry out any other tasks contemplated

6 under this Act or the Chicago Casino Development Authority

7 Act.

8 (17) To establish minimum levels of insurance to be

9 maintained by licensees.

10 (18) To authorize a licensee to sell or serve alcoholic

11 liquors, wine or beer as defined in the Liquor Control Act

12 of 1934 on board a riverboat or in a casinoand to have

13 exclusive authority to establish the hours for sale and

14 consumption of alcoholic liquor on board a riverboat or in

15 a casino, notwithstanding any provision of the Liquor

16 Control Act of 1934 or any local ordinance, and regardless

17 of whether the riverboat makes excursions. The

18 establishment of the hours for sale and consumption of

19 alcoholic liquor on board a riverboator in a casino is an

20 exclusive power and function of the State. A home rule unit

21 may not establish the hours for sale and consumption of

22 alcoholic liquor on board a riverboator in a casino. This

23 subdivision (18) ~~amendatory Act of 1991~~is a denial and

24 limitation of home rule powers and functions under

25 subsection (h) of Section 6 of Article VII of the Illinois

26 Constitution.

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1 (19) After consultation with the U.S. Army Corps of

2 Engineers, to establish binding emergency orders upon the

3 concurrence of a majority of the members of the Board

4 regarding the navigability of water, relative to

5 excursions, in the event of extreme weather conditions,

6 acts of God or other extreme circumstances.

7 (20) To delegate the execution of any of its powers

8 under this Act or the Chicago Casino Development Authority

9 Actfor the purpose of administering and enforcing this

10 Act, the Chicago Casino Development Authority Act, and the

11 ~~its~~ rules adopted by the Board under both Acts ~~and~~

12 ~~regulations hereunder~~.

13 (20.5) To approve any contract entered into on its

14 behalf.

15 (20.6) To appoint investigators to conduct

16 investigations, searches, seizures, arrests, and other

17 duties imposed under this Act, as deemed necessary by the

18 Board. These investigators have and may exercise all of the

19 rights and powers of peace officers, provided that these

20 powers shall be limited to offenses or violations occurring

21 or committed in a casino, in an electronic gaming facility,

22 or on a riverboat or dock, as defined in subsections (d)

23 and (f) of Section 4, or as otherwise provided by this Act,

24 the Chicago Casino Development Authority Act, or any other

25 law.

26 (20.7) To contract with the Department of State Police

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1 for the use of trained and qualified State police officers

2 and with the Department of Revenue for the use of trained

3 and qualified Department of Revenue investigators to

4 conduct investigations, searches, seizures, arrests, and

5 other duties imposed under this Act or the Chicago Casino

6 Development Authority Act and to exercise all of the rights

7 and powers of peace officers, provided that the powers of

8 Department of Revenue investigators under this subdivision

9 (20.7) shall be limited to offenses or violations occurring

10 or committed in a casino, in an electronic gaming facility,

11 or on a riverboat or dock, as defined in subsections (d)

12 and (f) of Section 4, or as otherwise provided by this Act

13 or any other law. In the event the Department of State

14 Police or the Department of Revenue is unable to fill

15 contracted police or investigative positions, the Board

16 may appoint investigators to fill those positions pursuant

17 to subdivision (20.6).

18 (21) To adopt rules concerning the conduct of

19 electronic gaming.

20 (22) To have the same jurisdiction and supervision over

21 casinos and electronic gaming facilities as the Board has

22 over riverboats, including, but not limited to, the power

23 to (i) investigate, review, and approve contracts as that

24 power is applied to riverboats, (ii) adopt rules for

25 administering the provisions of this Act or the Chicago

26 Casino Development Authority Act, (iii) adopt standards

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1 for the licensing of all persons involved with a casino or

2 electronic gaming facility, (iv) investigate alleged

3 violations of this Act by any person involved with a casino

4 or electronic gaming facility, and (v) require that

5 records, including financial or other statements of any

6 casino or electronic gaming facility, shall be kept in such

7 manner as prescribed by the Board.

8 (23) To supervise and regulate the Chicago Casino

9 Development Authority in accordance with the Chicago

10 Casino Development Authority Act and the provisions of this

11 Act.

12 (24) ~~(21)~~ To take any other action as may be reasonable

13 or appropriate to enforce this Act, the Chicago Casino

14 Development Authority Act, and the rules adopted by the

15 Board under both Acts ~~and regulations hereunder~~.

16 All Board powers enumerated in this Section in relation to

17 licensees shall apply equally to the holder of any casino

18 management contract entered into pursuant to the Chicago Casino

19 Development Authority Act.

20 (d) The Board may seek and shall receive the cooperation of

21 the Department of State Police in conducting background

22 investigations of applicants and in fulfilling its

23 responsibilities under this Section. Costs incurred by the

24 Department of State Police as a result of such cooperation

25 shall be paid by the Board in conformance with the requirements

26 of Section 2605-400 of the Department of State Police Law (20

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1 ILCS 2605/2605-400).

2 (e) The Board must authorize to each investigator and to

3 any other employee of the Board exercising the powers of a

4 peace officer a distinct badge that, on its face, (i) clearly

5 states that the badge is authorized by the Board and (ii)

6 contains a unique identifying number. No other badge shall be

7 authorized by the Board.

8 (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;

9 96-1000, eff. 7-2-10; 96-1392, eff. 1-1-11.)

10 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)

11 Sec. 5.1. Disclosure of records.

12 (a) Notwithstanding any applicable statutory provision to

13 the contrary, the Board shall, on written request from any

14 person, provide information furnished by an applicant or

15 licensee concerning the applicant or licensee, his products,

16 services or gambling enterprises and his business holdings, as

17 follows:

18 (1) The name, business address and business telephone

19 number of any applicant or licensee.

20 (2) An identification of any applicant or licensee

21 including, if an applicant or licensee is not an

22 individual, the names and addresses of all stockholders and

23 directors, if the entity is a corporation; the names and

24 addresses of all members, if the entity is a limited

25 liability company; the names and addresses of all partners,

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1 both general and limited, if the entity is a partnership;

2 and the names and addresses of all beneficiaries, if the

3 entity is a trust ~~the state of incorporation or~~

4 ~~registration, the corporate officers, and the identity of~~

5 ~~all shareholders or participants~~. If an applicant or

6 licensee has a pending registration statement filed with

7 the Securities and Exchange Commission, only the names of

8 those persons or entities holding interest of 5% or more

9 must be provided.

10 (3) An identification of any business, including, if

11 applicable, the state of incorporation or registration, in

12 which an applicant or licensee or an applicant's or

13 licensee's spouse or children has an equity interest of

14 more than 1%. If an applicant or licensee is a corporation,

15 partnership or other business entity, the applicant or

16 licensee shall identify any other corporation, partnership

17 or business entity in which it has an equity interest of 1%

18 or more, including, if applicable, the state of

19 incorporation or registration. This information need not

20 be provided by a corporation, partnership or other business

21 entity that has a pending registration statement filed with

22 the Securities and Exchange Commission.

23 (4) Whether an applicant or licensee has been indicted,

24 convicted, pleaded guilty or nolo contendere, or forfeited

25 bail concerning any criminal offense under the laws of any

26 jurisdiction, either felony or misdemeanor (except for

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1 traffic violations), including the date, the name and

2 location of the court, arresting agency and prosecuting

3 agency, the case number, the offense, the disposition and

4 the location and length of incarceration.

5 (5) Whether an applicant or licensee has had any

6 license or certificate issued by a licensing authority in

7 Illinois or any other jurisdiction denied, restricted,

8 suspended, revoked or not renewed and a statement

9 describing the facts and circumstances concerning the

10 denial, restriction, suspension, revocation or

11 non-renewal, including the licensing authority, the date

12 each such action was taken, and the reason for each such

13 action.

14 (6) Whether an applicant or licensee has ever filed or

15 had filed against it a proceeding in bankruptcy or has ever

16 been involved in any formal process to adjust, defer,

17 suspend or otherwise work out the payment of any debt

18 including the date of filing, the name and location of the

19 court, the case and number of the disposition.

20 (7) Whether an applicant or licensee has filed, or been

21 served with a complaint or other notice filed with any

22 public body, regarding the delinquency in the payment of,

23 or a dispute over the filings concerning the payment of,

24 any tax required under federal, State or local law,

25 including the amount, type of tax, the taxing agency and

26 time periods involved.

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1 (8) A statement listing the names and titles of all

2 public officials or officers of any unit of government, and

3 relatives of said public officials or officers who,

4 directly or indirectly, own any financial interest in, have

5 any beneficial interest in, are the creditors of or hold

6 any debt instrument issued by, or hold or have any interest

7 in any contractual or service relationship with, an

8 applicant or licensee.

9 (9) Whether an applicant or licensee has made, directly

10 or indirectly, any political contribution, or any loans,

11 donations or other payments, to any candidate or office

12 holder, within 5 years from the date of filing the

13 application, including the amount and the method of

14 payment.

15 (10) The name and business telephone number of the

16 counsel representing an applicant or licensee in matters

17 before the Board.

18 (11) A description of any proposed or approved

19 riverboat or casinogamingor electronic gaming operation,

20 including the type of boat, home dock or casino or

21 electronic gaminglocation, expected economic benefit to

22 the community, anticipated or actual number of employees,

23 any statement from an applicant or licensee regarding

24 compliance with federal and State affirmative action

25 guidelines, projected or actual admissions and projected

26 or actual adjusted gross gaming receipts.

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1 (12) A description of the product or service to be

2 supplied by an applicant for a supplier's license.

3 (b) Notwithstanding any applicable statutory provision to

4 the contrary, the Board shall, on written request from any

5 person, also provide the following information:

6 (1) The amount of the wagering tax and admission tax

7 paid daily to the State of Illinois by the holder of an

8 owner's license.

9 (2) Whenever the Board finds an applicant for an

10 owner's license unsuitable for licensing, a copy of the

11 written letter outlining the reasons for the denial.

12 (3) Whenever the Board has refused to grant leave for

13 an applicant to withdraw his application, a copy of the

14 letter outlining the reasons for the refusal.

15 (c) Subject to the above provisions, the Board shall not

16 disclose any information which would be barred by:

17 (1) Section 7 of the Freedom of Information Act; or

18 (2) The statutes, rules, regulations or

19 intergovernmental agreements of any jurisdiction.

20 (d) The Board may assess fees for the copying of

21 information in accordance with Section 6 of the Freedom of

22 Information Act.

23 (Source: P.A. 96-1392, eff. 1-1-11.)

24 (230 ILCS 10/5.3 new)

25 Sec. 5.3. Ethical conduct.

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1 (a) Officials and employees of the corporate authority of a

2 host community must carry out their duties and responsibilities

3 in such a manner as to promote and preserve public trust and

4 confidence in the integrity and conduct of gaming.

5 (b) Officials and employees of the corporate authority of a

6 host community shall not use or attempt to use his or her

7 official position to secure or attempt to secure any privilege,

8 advantage, favor, or influence for himself or herself or

9 others.

10 (c) Officials and employees of the corporate authority of a

11 host community may not have a financial interest, directly or

12 indirectly, in his or her own name or in the name of any other

13 person, partnership, association, trust, corporation, or other

14 entity in any contract or subcontract for the performance of

15 any work for a riverboat or casino that is located in the host

16 community. This prohibition shall extend to the holding or

17 acquisition of an interest in any entity identified by Board

18 action that, in the Board's judgment, could represent the

19 potential for or the appearance of a financial interest. The

20 holding or acquisition of an interest in such entities through

21 an indirect means, such as through a mutual fund, shall not be

22 prohibited, except that the Board may identify specific

23 investments or funds that, in its judgment, are so influenced

24 by gaming holdings as to represent the potential for or the

25 appearance of a conflict of interest.

26 (d) Officials and employees of the corporate authority of a

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1 host community may not accept any gift, gratuity, service,

2 compensation, travel, lodging, or thing of value, with the

3 exception of unsolicited items of an incidental nature, from

4 any person, corporation, or entity doing business with the

5 riverboat or casino that is located in the host community.

6 (e) Officials and employees of the corporate authority of a

7 host community shall not, during the period that the person is

8 an official or employee of the corporate authority or for a

9 period of 2 years immediately after leaving such office,

10 knowingly accept employment or receive compensation or fees for

11 services from a person or entity, or its parent or affiliate,

12 that has engaged in business with the riverboat or casino that

13 is located in the host community that resulted in contracts

14 with an aggregate value of at least $25,000 or if that official

15 or employee has made a decision that directly applied to the

16 person or entity, or its parent or affiliate.

17 (f) A spouse, child, or parent of an official or employee

18 of the corporate authority of a host community may not have a

19 financial interest, directly or indirectly, in his or her own

20 name or in the name of any other person, partnership,

21 association, trust, corporation, or other entity in any

22 contract or subcontract for the performance of any work for a

23 riverboat or casino in the host community. This prohibition

24 shall extend to the holding or acquisition of an interest in

25 any entity identified by Board action that, in the judgment of

26 the Board, could represent the potential for or the appearance

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1 of a conflict of interest. The holding or acquisition of an

2 interest in such entities through an indirect means, such as

3 through a mutual fund, shall not be prohibited, expect that the

4 Board may identify specific investments or funds that, in its

5 judgment, are so influenced by gaming holdings as to represent

6 the potential for or the appearance of a conflict of interest.

7 (g) A spouse, child, or parent of an official or employee

8 of the corporate authority of a host community may not accept

9 any gift, gratuity, service, compensation, travel, lodging, or

10 thing of value, with the exception of unsolicited items of an

11 incidental nature, from any person, corporation, or entity

12 doing business with the riverboat or casino that is located in

13 the host community.

14 (h) A spouse, child, or parent of an official or employee

15 of the corporate authority of a host community may not, during

16 the period that the person is an official of the corporate

17 authority or for a period of 2 years immediately after leaving

18 such office or employment, knowingly accept employment or

19 receive compensation or fees for services from a person or

20 entity, or its parent or affiliate, that has engaged in

21 business with the riverboat or casino that is located in the

22 host community that resulted in contracts with an aggregate

23 value of at least $25,000 or if that official or employee has

24 made a decision that directly applied to the person or entity,

25 or its parent or affiliate.

26 (i) Officials and employees of the corporate authority of a

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1 host community shall not attempt, in any way, to influence any

2 person or entity doing business with the riverboat or casino

3 that is located in the host community or any officer, agent, or

4 employee thereof to hire or contract with any person or entity

5 for any compensated work.

6 (j) Any communication between an official of the corporate

7 authority of a host community and any applicant for an owners

8 license in the host community, or an officer, director, or

9 employee of a riverboat or casino in the host community,

10 concerning any matter relating in any way to gaming shall be

11 disclosed to the Board. Such disclosure shall be in writing by

12 the official within 30 days after the communication and shall

13 be filed with the Board. Disclosure must consist of the date of

14 the communication, the identity and job title of the person

15 with whom the communication was made, a brief summary of the

16 communication, the action requested or recommended, all

17 responses made, the identity and job title of the person making

18 the response, and any other pertinent information. Public

19 disclosure of the written summary provided to the Board and the

20 Gaming Board shall be subject to the exemptions provided under

21 the Freedom of Information Act.

22 This subsection (j) shall not apply to communications

23 regarding traffic, law enforcement, security, environmental

24 issues, city services, transportation, or other routine

25 matters concerning the ordinary operations of the riverboat or

26 casino. For purposes of this subsection (j), "ordinary

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1 operations" means operations relating to the casino or

2 riverboat facility other than the conduct of gambling

3 activities, and "routine matters" includes the application

4 for, issuance of, renewal of, and other processes associated

5 with municipal permits and licenses.

6 (k) Any official or employee who violates any provision of

7 this Section is guilty of a Class 4 felony.

8 (l) For purposes of this Section, "host community" or "host

9 municipality" means a unit of local government that contains a

10 riverboat or casino within its borders, but does not include

11 the City of Chicago or the Chicago Casino Development

12 Authority.

13 (230 ILCS 10/6) (from Ch. 120, par. 2406)

14 Sec. 6. Application for Owners License.

15 (a) A qualified person may apply to the Board for an owners

16 license to conduct a riverboat gambling operation as provided

17 in this Act. The application shall be made on forms provided by

18 the Board and shall contain such information as the Board

19 prescribes, including but not limited to the identity of the

20 riverboat on which such gambling operation is to be conducted,

21 if applicable, and the exact location where such riverboat or

22 casino will be located ~~docked~~, a certification that the

23 riverboat will be registered under this Act at all times during

24 which gambling operations are conducted on board, detailed

25 information regarding the ownership and management of the

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1 applicant, and detailed personal information regarding the

2 applicant. Any application for an owners license to be

3 re-issued on or after June 1, 2003 shall also include the

4 applicant's license bid in a form prescribed by the Board.

5 Information provided on the application shall be used as a

6 basis for a thorough background investigation which the Board

7 shall conduct with respect to each applicant. An incomplete

8 application shall be cause for denial of a license by the

9 Board.

10 (a-5) In addition to any other information required under

11 this Section, each application for an owners license must

12 include the following information:

13 (1) The history and success of the applicant and each

14 person and entity disclosed under subsection (c) of this

15 Section in developing tourism facilities ancillary to

16 gaming, if applicable.

17 (2) The likelihood that granting a license to the

18 applicant will lead to the creation of quality, living wage

19 jobs and permanent, full-time jobs for residents of the

20 State and residents of the unit of local government that is

21 designated as the home dock of the proposed facility where

22 gambling is to be conducted by the applicant.

23 (3) The projected number of jobs that would be created

24 if the license is granted and the projected number of new

25 employees at the proposed facility where gambling is to be

26 conducted by the applicant.

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1 (4) The record, if any, of the applicant and its

2 developer in meeting commitments to local agencies,

3 community-based organizations, and employees at other

4 locations where the applicant or its developer has

5 performed similar functions as they would perform if the

6 applicant were granted a license.

7 (5) Identification of adverse effects that might be

8 caused by the proposed facility where gambling is to be

9 conducted by the applicant, including the costs of meeting

10 increased demand for public health care, child care, public

11 transportation, affordable housing, and social services,

12 and a plan to mitigate those adverse effects.

13 (6) The record, if any, of the applicant and its

14 developer regarding compliance with:

15 (A) federal, state, and local discrimination, wage

16 and hour, disability, and occupational and

17 environmental health and safety laws; and

18 (B) state and local labor relations and employment

19 laws.

20 (7) The applicant's record, if any, in dealing with its

21 employees and their representatives at other locations.

22 (8) A plan concerning the utilization of

23 minority-owned and female-owned businesses and concerning

24 the hiring of minorities and females.

25 (9) Evidence the applicant used its best efforts to

26 reach a goal of 25% ownership representation by minority

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1 persons and 5% ownership representation by females.

2 (b) Applicants shall submit with their application all

3 documents, resolutions, and letters of support from the

4 governing body that represents the municipality or county

5 wherein the licensee will be located ~~dock~~.

6 (c) Each applicant shall disclose the identity of every

7 person or entity ~~, association, trust or corporation~~ having a

8 greater than 1% direct or indirect pecuniary interest in the

9 ~~riverboat~~gambling operation with respect to which the license

10 is sought. If the disclosed entity is a trust, the application

11 shall disclose the names and addresses of all ~~the~~

12 beneficiaries; if a corporation, the names and addresses of all

13 stockholders and directors; if a partnership, the names and

14 addresses of all partners, both general and limited.

15 (d) An application shall be filed and considered in

16 accordance with the rules of the Board. Each application shall

17 be accompanied by a non-refundable ~~An~~application fee of

18 $100,000. In addition, a non-refundable fee of $50,000 shall be

19 paid at the time of filing to defray the costs associated with

20 the background investigation conducted by the Board. If the

21 costs of the investigation exceed $50,000, the applicant shall

22 pay the additional amount to the Boardwithin 7 days after

23 requested by the Board. If the costs of the investigation are

24 less than $50,000, the applicant shall receive a refund of the

25 remaining amount. All information, records, interviews,

26 reports, statements, memoranda or other data supplied to or

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1 used by the Board in the course of its review or investigation

2 of an application for a license or a renewal under this Act

3 shall be privileged, strictly confidential and shall be used

4 only for the purpose of evaluating an applicant for a license

5 or a renewal. Such information, records, interviews, reports,

6 statements, memoranda or other data shall not be admissible as

7 evidence, nor discoverable in any action of any kind in any

8 court or before any tribunal, board, agency or person, except

9 for any action deemed necessary by the Board.The application

10 fee shall be deposited into the Gaming Facilities Fee Revenue

11 Fund.

12 (e) The Board shall charge each applicant a fee set by the

13 Department of State Police to defray the costs associated with

14 the search and classification of fingerprints obtained by the

15 Board with respect to the applicant's application. These fees

16 shall be paid into the State Police Services Fund.

17 (f) The licensed owner shall be the person primarily

18 responsible for the boator casino itself. Only one ~~riverboat~~

19 gambling operation may be authorized by the Board on any

20 riverboat or in any casino. The applicant must identify the

21 ~~each~~ riverboat or premisesit intends to use and certify that

22 the riverboat or premises: (1) has the authorized capacity

23 required in this Act; (2) is accessible to disabled persons;

24 and (3) is fully registered and licensed in accordance with any

25 applicable laws.

26 (g) A person who knowingly makes a false statement on an

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1 application is guilty of a Class A misdemeanor.

2 (Source: P.A. 96-1392, eff. 1-1-11.)

3 (230 ILCS 10/7) (from Ch. 120, par. 2407)

4 Sec. 7. Owners Licenses.

5 (a) The Board shall issue owners licenses to persons or

6 entities ~~, firms or corporations~~ which apply for such licenses

7 upon payment to the Board of the non-refundable license feeas

8 provided in subsection (e) or (e-5) ~~set by the Board, upon~~

9 ~~payment of a $25,000 license fee for the first year of~~

10 ~~operation and a $5,000 license fee for each succeeding year~~ and

11 upon a determination by the Board that the applicant is

12 eligible for an owners license pursuant to this Act, the

13 Chicago Casino Development Authority Act,and the rules of the

14 Board. From the effective date of this amendatory Act of the

15 95th General Assembly until (i) 3 years after the effective

16 date of this amendatory Act of the 95th General Assembly, (ii)

17 the date any organization licensee begins to operate a slot

18 machine or video game of chance under the Illinois Horse Racing

19 Act of 1975 or this Act, (iii) the date that payments begin

20 under subsection (c-5) of Section 13 of the Act, ~~or~~ (iv) the

21 wagering tax imposed under Section 13 of this Act is increased

22 by law to reflect a tax rate that is at least as stringent or

23 more stringent than the tax rate contained in subsection (a-3)

24 of Section 13, or (v) when an owners licensee holding a license

25 issued pursuant to Section 7.1 of this Act begins conducting

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1 gaming, whichever occurs first, as a condition of licensure and

2 as an alternative source of payment for those funds payable

3 under subsection (c-5) of Section 13 of this ~~the Riverboat~~

4 ~~Gambling~~ Act, any owners licensee that holds or receives its

5 owners license on or after the effective date of this

6 amendatory Act of the 94th General Assembly, other than an

7 owners licensee operating a riverboat with adjusted gross

8 receipts in calendar year 2004 of less than $200,000,000, must

9 pay into the Horse Racing Equity Trust Fund, in addition to any

10 other payments required under this Act, an amount equal to 3%

11 of the adjusted gross receipts received by the owners licensee.

12 The payments required under this Section shall be made by the

13 owners licensee to the State Treasurer no later than 3:00

14 o'clock p.m. of the day after the day when the adjusted gross

15 receipts were received by the owners licensee. A person~~, firm~~

16 or entity ~~corporation~~is ineligible to receive an owners

17 license if:

18 (1) the person has been convicted of a felony under the

19 laws of this State, any other state, or the United States;

20 (2) the person has been convicted of any violation of

21 Article 28 of the Criminal Code of 1961 or the Criminal

22 Code of 2012, or substantially similar laws of any other

23 jurisdiction;

24 (3) the person has submitted an application for a

25 license under this Actor the Chicago Casino Development

26 Authority Act which contains false information;

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1 (4) the person is a member of the Board;

2 (5) a person defined in (1), (2), (3) or (4) is an

3 officer, director or managerial employee of theentity ~~firm~~

4 ~~or corporation~~;

5 (6) the entity ~~firm or corporation~~ employs a person

6 defined in (1), (2), (3) or (4) who participates in the

7 management or operation of gambling operations authorized

8 under this Act or the Chicago Casino Development Authority

9 Act;

10 (7) (blank); or

11 (8) a license of the person or entity ~~, firm or~~

12 ~~corporation~~issued under this Actor the Chicago Casino

13 Development Authority Act, or a license to own or operate

14 gambling facilities in any other jurisdiction, has been

15 revoked.

16 The Board is expressly prohibited from making changes to

17 the requirement that licensees make payment into the Horse

18 Racing Equity Trust Fund without the express authority of the

19 Illinois General Assembly and making any other rule to

20 implement or interpret this amendatory Act of the 95th General

21 Assembly. For the purposes of this paragraph, "rules" is given

22 the meaning given to that term in Section 1-70 of the Illinois

23 Administrative Procedure Act.

24 (a-1) Upon approval of the members of the Chicago Casino

25 Development Board, the Chicago Casino Development Authority's

26 executive director, and the Chicago casino operator licensee,

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1 the Board shall issue an owners license to the Chicago Casino

2 Development Authority that authorizes the conduct of gambling

3 operations in a casino located in the City of Chicago.

4 (b) In determining whether to grant an owners license to an

5 applicant other than the Chicago Casino Development Authority,

6 the Board shall consider:

7 (1) the character, reputation, experience and

8 financial integrity of the applicants and of any other or

9 separate person that either:

10 (A) controls, directly or indirectly, such

11 applicant, or

12 (B) is controlled, directly or indirectly, by such

13 applicant or by a person which controls, directly or

14 indirectly, such applicant;

15 (2) the facilities or proposed facilities for the

16 conduct of ~~riverboat~~gambling;

17 (3) the highest prospective total revenue to be derived

18 by the State from the conduct of~~riverboat~~ gambling;

19 (4) the extent to which the ownership of the applicant

20 reflects the diversity of the State by including minority

21 persons, females, and persons with a disability and the

22 good faith affirmative action plan of each applicant to

23 recruit, train and upgrade minority persons, females, and

24 persons with a disability in all employment

25 classifications;

26 (5) the financial ability of the applicant to purchase

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1 and maintain adequate liability and casualty insurance;

2 (6) whether the applicant has adequate capitalization

3 to provide and maintain, for the duration of a license, a

4 riverboat or casino;

5 (7) the extent to which the applicant exceeds or meets

6 other standards for the issuance of an owners license which

7 the Board may adopt by rule;~~and~~

8 (8) the ~~The~~ amount of the applicant's license bid; ~~.~~

9 (9) the extent to which the applicant or the proposed

10 host municipality plans to enter into revenue sharing

11 agreements with communities other than the host

12 municipality; and

13 (10) the extent to which the ownership of an applicant

14 includes the most qualified number of minority persons,

15 females, and persons with a disability.

16 (c) Each owners license shall specify the place where the

17 casino ~~riverboats~~shall operateor the riverboat shall operate

18 and dock.

19 (d) Each applicant shall submit with his application, on

20 forms provided by the Board, 2 sets of his fingerprints.

21 (e) In addition to any licenses authorized under subsection

22 (e-5) of this Section, the ~~The~~ Board may issue up to 10

23 licenses authorizing the holders of such licenses to own

24 riverboats. In the application for an owners license, the

25 applicant shall state the dock at which the riverboat is based

26 and the water on which the riverboat will be located. The Board

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1 shall issue 5 licenses to become effective not earlier than

2 January 1, 1991. Three of such licenses shall authorize

3 riverboat gambling on the Mississippi River, or, with approval

4 by the municipality in which the riverboat was docked on August

5 7, 2003 and with Board approval, be authorized to relocate to a

6 new location, in a municipality that (1) borders on the

7 Mississippi River or is within 5 miles of the city limits of a

8 municipality that borders on the Mississippi River and (2), on

9 August 7, 2003, had a riverboat conducting riverboat gambling

10 operations pursuant to a license issued under this Act; one of

11 which shall authorize riverboat gambling from a home dock in

12 the city of East St. Louis. One other license shall authorize

13 riverboat gambling on the Illinois Riverin Tazewell County or,

14 with Board approval, shall authorize the riverboat to relocate

15 to a new location that is no more than 10 miles away from its

16 original location, in a municipality that borders on the

17 Illinois River or is within 5 miles of the city limits of a

18 municipality that borders on the Illinois River ~~south of~~

19 ~~Marshall County~~. The Board shall issue one additional license

20 to become effective not earlier than March 1, 1992, which shall

21 authorize riverboat gambling on the Des Plaines River in Will

22 County. The Board may issue 4 additional licenses to become

23 effective not earlier than March 1, 1992. In determining the

24 water upon which riverboats will operate, the Board shall

25 consider the economic benefit which riverboat gambling confers

26 on the State, and shall seek to assure that all regions of the

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1 State share in the economic benefits of riverboat gambling.

2 In granting all licenses, the Board may give favorable

3 consideration to economically depressed areas of the State, to

4 applicants presenting plans which provide for significant

5 economic development over a large geographic area, and to

6 applicants who currently operate non-gambling riverboats in

7 Illinois. The Board shall review all applications for owners

8 licenses, and shall inform each applicant of the Board's

9 decision. The Board may grant an owners license to an applicant

10 that has not submitted the highest license bid, but if it does

11 not select the highest bidder, the Board shall issue a written

12 decision explaining why another applicant was selected and

13 identifying the factors set forth in this Section that favored

14 the winning bidder. The fee for issuance or renewal of a

15 license pursuant to this subsection (e) shall be $100,000.

16 (e-5) In addition to licenses authorized under subsection

17 (e) of this Section:

18 (1) the Board shall issue one owners license

19 authorizing the conduct of casino gambling in the City of

20 Chicago;

21 (2) the Board may issue one owners license authorizing

22 the conduct of riverboat gambling in the City of Danville;

23 (3) the Board may issue one owners license authorizing

24 the conduct of riverboat gambling located in Lake County;

25 (4) the Board may issue one owners license authorizing

26 the conduct of riverboat gambling in the City of Rockford;

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1 and

2 (5) the Board may issue one owners license authorizing

3 the conduct of riverboat gambling in a municipality that is

4 located in one of the following townships of Cook County:

5 Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township.

6 Each application for a license pursuant to this subsection

7 (e-5) shall be submitted to the Board no later than 6 months

8 after the effective date of this amendatory Act of the 98th

9 General Assembly and shall include the non-refundable

10 application fee and the non-refundable background

11 investigation fee as provided in subsection (d) of Section 6 of

12 this Act. In the event that an applicant submits an application

13 for a license pursuant to this subsection (e-5) prior to the

14 effective date of this amendatory Act of the 98th General

15 Assembly, such applicant shall submit the non-refundable

16 application fee and background investigation fee as provided in

17 subsection (d) of Section 6 of this Act no later than 6 months

18 after the effective date of this amendatory Act of the 98th

19 General Assembly.

20 The Board shall consider issuing a license pursuant to

21 paragraphs (2) through (5) of this subsection only after the

22 corporate authority of the municipality in which the riverboat

23 shall be located has certified to the Board the following:

24 (i) that the applicant has negotiated with the

25 corporate authority in good faith;

26 (ii) that the applicant and the corporate authority

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1 have mutually agreed on the permanent location of the

2 riverboat;

3 (iii) that the applicant and the corporate authority

4 have mutually agreed on the temporary location of the

5 riverboat;

6 (iv) that the applicant and the corporate authority

7 have mutually agreed on the percentage of revenues that

8 will be shared with the municipality, if any; and

9 (v) that the applicant and the corporate authority have

10 mutually agreed on any zoning, licensing, public health, or

11 other issues that are within the jurisdiction of the

12 municipality.

13 At least 7 days before the corporate authority of a

14 municipality submits a certification to the Board concerning

15 items (i) through (v) of this subsection, it shall hold a

16 public hearing to discuss items (i) through (v), as well as any

17 other details concerning the proposed riverboat in the

18 municipality. The corporate authority must subsequently

19 memorialize the details concerning the proposed riverboat or

20 casino in a resolution that must be adopted by a majority of

21 the corporate authority before any certification is sent to the

22 Board. The Board shall not alter, amend, change, or otherwise

23 interfere with any agreement between the applicant and the

24 corporate authority of the municipality regarding the location

25 of any temporary or permanent facility.

26 (e-10) The licenses authorized under subsection (e-5) of

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1 this Section shall be issued within 12 months after the date

2 the license application is submitted. If the Board does not

3 issue the licenses within that time period, then the Board

4 shall give a written explanation to the applicant as to why it

5 has not reached a determination and when it reasonably expects

6 to make a determination. The fee for the issuance or renewal of

7 a license issued pursuant to this subsection (e-10) shall be

8 $100,000. Additionally, a licensee located outside of Cook

9 County shall pay a minimum initial fee of $17,500 per gaming

10 position, and a licensee located in Cook County shall pay a

11 minimum initial fee of $30,000 per gaming position. The initial

12 fees payable under this subsection (e-10) shall be deposited

13 into the Gaming Facilities Fee Revenue Fund.

14 (e-15) Each licensee of a license authorized under

15 subsection (e-5) of this Section shall make a reconciliation

16 payment 3 years after the date the licensee begins operating in

17 an amount equal to 75% of the adjusted gross receipts for the

18 most lucrative 12-month period of operations, minus an amount

19 equal to the initial payment per gaming position paid by the

20 specific licensee. If this calculation results in a negative

21 amount, then the licensee is not entitled to any reimbursement

22 of fees previously paid. This reconciliation payment may be

23 made in installments over a period of no more than 2 years,

24 subject to Board approval. Any installment payments shall

25 include an annual market interest rate as determined by the

26 Board. All payments by licensees under this subsection (e-15)

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1 shall be deposited into the Gaming Facilities Fee Revenue Fund.

2 (e-20) In addition to any other revocation powers granted

3 to the Board under this Act, the Board may revoke the owners

4 license of a licensee which fails to begin conducting gambling

5 within 15 months of receipt of the Board's approval of the

6 application if the Board determines that license revocation is

7 in the best interests of the State.

8 (f) The first 10 owners licenses issued under this Act

9 shall permit the holder to own up to 2 riverboats and equipment

10 thereon for a period of 3 years after the effective date of the

11 license. Holders of the first 10 owners licenses must pay the

12 annual license fee for each of the 3 years during which they

13 are authorized to own riverboats.

14 (g) Upon the termination, expiration, or revocation of each

15 of the first 10 licenses, which shall be issued for a 3 year

16 period, all licenses are renewable annually upon payment of the

17 fee and a determination by the Board that the licensee

18 continues to meet all of the requirements of this Act and the

19 Board's rules. However, for licenses renewed on or after May 1,

20 1998, including casino operator licenses,renewal shall be for

21 a period of 4 years, unless the Board sets a shorter period.

22 (h) An owners license, except for an owners license issued

23 under subsection (e-5) of this Section, shall entitle the

24 licensee to own up to 2 riverboats.

25 An owners licensee of a casino or riverboat that is located

26 in the City of Chicago pursuant to paragraph (1) of subsection

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1 (e-5) of this Section shall limit the number of gaming

2 positions to 4,000 for such owner. All other owners licensees ~~A~~

3 ~~licensee~~ shall limit the number of gaming positions ~~gambling~~

4 ~~participants~~to1,600 ~~1,200~~ for any such owners license, except

5 as further provided in subsection (h-10) of this Section. The

6 initial fee for each gaming position obtained on or after the

7 effective date of this amendatory Act of the 98th General

8 Assembly shall be a minimum of $17,500 for licensees not

9 located in Cook County and a minimum of $30,000 for licensees

10 located in Cook County, in addition to the reconciliation

11 payment, as set forth in subsections (e-15) or (h-5) of this

12 Section.

13 Each owners licensee shall reserve its gaming positions

14 within 90 days after issuance of its owners license. The Board

15 may grant an extension to this 90-day period, provided that the

16 owners licensee submits a written request and explanation as to

17 why it is unable to reserve its positions within the 90-day

18 period.

19 A licensee may operate both of its riverboats concurrently,

20 provided that the total number ofgaming positions ~~gambling~~

21 ~~participants~~ on both riverboats does not exceed the limit

22 established pursuant to this subsection and subsection (h-10)

23 of this Section~~1,200~~. Riverboats licensed to operate on the

24 Mississippi River and the Illinois River south of Marshall

25 County shall have an authorized capacity of at least 500

26 persons. Any other riverboat licensed under this Act shall have

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1 an authorized capacity of at least 400 persons.

2 (h-5) An owners licensee who conducted gambling operations

3 prior to January 1, 2012 and purchases positions pursuant to

4 subsection (h-10) of this Section on or after the effective

5 date of this amendatory Act of the 98th General Assembly must

6 pay a minimum initial fee of $17,500 per gaming position if the

7 licensee is located outside Cook County and a minimum initial

8 fee of $30,000 per gaming position if the licensee is located

9 in Cook County, as stated in subsection (h) of this Section.

10 These initial fees shall be deposited into the Gaming

11 Facilities Fee Revenue Fund. Additionally, that owners

12 licensee shall make a reconciliation payment 3 years after any

13 additional gaming positions obtained pursuant to subsection

14 (h-10) begin operating in an amount equal to 75% of the owners

15 licensee's average gross receipts for the most lucrative

16 12-month period of operations minus an amount equal to the

17 initial fee that the owners licensee paid per additional gaming

18 position. For purposes of this subsection (h-5), "average gross

19 receipts" means (i) the increase in adjusted gross receipts for

20 the most lucrative 12-month period of operations over the

21 adjusted gross receipts for 2013, multiplied by (ii) the

22 percentage derived by dividing the number of additional gaming

23 positions that an owners licensee had obtained pursuant to

24 subsection (h-10) by the total number of gaming positions

25 operated by the owners licensee. If this calculation results in

26 a negative amount, then the owners licensee is not entitled to

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1 any reimbursement of fees previously paid. This reconciliation

2 payment may be made in installments over a period of no more

3 than 2 years, subject to Board approval. Any installment

4 payments shall include an annual market interest rate as

5 determined by the Board. These reconciliation payments shall be

6 deposited into the Gaming Facilities Fee Revenue Fund.

7 (h-10) For owners licensees authorized under paragraphs

8 (2) through (5) of subsection (e-5) of this Section, the

9 application for such new owners licenses shall ask the

10 applicants to stipulate in their applications the number of

11 gaming positions each applicant would like to reserve, up to

12 1,600 gaming positions. Once the last winning applicant for

13 each of these owners licenses has been selected by the Board,

14 the Board shall publish the number of gaming positions reserved

15 and unreserved by each winning applicant, shall accept requests

16 for additional gaming positions from any winning applicants or

17 owners licensee who initially reserved 1,600 gaming positions,

18 and shall allocate expeditiously the unreserved gaming

19 positions to such requesting winning applicants or owners

20 licensees in a manner to maximize revenue to the State;

21 provided, however, that no owners licensee (other than the

22 Chicago Casino Development Authority) shall obtain more than

23 2,000 positions total. The Board may allocate any such unused

24 gaming positions through a competitive bidding process

25 pursuant to Section 7.5 of this Act.

26 In the event that not all of the unreserved gaming

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1 positions described in the first and second paragraphs of this

2 subsection (h-10) were requested by owners licensees and

3 applicants, then until there are no longer unreserved gaming

4 positions, the Board periodically shall govern a process to

5 allocate the unreserved gaming positions in a manner to

6 maximize revenue to the State.

7 Unreserved gaming positions retained from and allocated to

8 owners licensees by the Board pursuant to this subsection

9 (h-10) shall not be allocated to electronic gaming licensees

10 pursuant to subsection (e) of Section 7.6 of this Act.

11 (i) A licensed owner is authorized to apply to the Board

12 for and, if approved therefor, to receive all licenses from the

13 Board necessary for the operation of a riverboator a casino,

14 including a liquor license, a license to prepare and serve food

15 for human consumption, and other necessary licenses. All use,

16 occupation and excise taxes which apply to the sale of food and

17 beverages in this State and all taxes imposed on the sale or

18 use of tangible personal property apply to such sales aboard

19 the riverboat or in the casino.

20 (j) The Board may issue or re-issue a license authorizing a

21 riverboat to dock in a municipality or approve a relocation

22 under Section 11.2 only if, prior to the issuance or

23 re-issuance of the license or approval, the governing body of

24 the municipality in which the riverboat will dock has by a

25 majority vote approved the docking of riverboats in the

26 municipality. The Board may issue or re-issue a license

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1 authorizing a riverboat to dock in areas of a county outside

2 any municipality or approve a relocation under Section 11.2

3 only if, prior to the issuance or re-issuance of the license or

4 approval, the governing body of the county has by a majority

5 vote approved of the docking of riverboats within such areas.

6 (k) An owners licensee may conduct land-based gambling

7 operations upon approval by the Board.

8 (l) An owners licensee may conduct gaming at a temporary

9 facility pending the construction of a permanent facility or

10 the remodeling or relocation of an existing facility to

11 accommodate gaming participants for up to 24 months after the

12 temporary facility begins to conduct gaming. Upon request by an

13 owners licensee and upon a showing of good cause by the owners

14 licensee, the Board shall extend the period during which the

15 licensee may conduct gaming at a temporary facility by up to 12

16 months. The Board shall make rules concerning the conduct of

17 gaming from temporary facilities.

18 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

19 (230 ILCS 10/7.3)

20 Sec. 7.3. State conduct of gambling operations.

21 (a) If, after reviewing each application for a re-issued

22 license, the Board determines that the highest prospective

23 total revenue to the State would be derived from State conduct

24 of the gambling operation in lieu of re-issuing the license,

25 the Board shall inform each applicant of its decision. The

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1 Board shall thereafter have the authority, without obtaining an

2 owners license, to conductcasino or riverboat gambling

3 operations as previously authorized by the terminated,

4 expired, revoked, or nonrenewed license through a licensed

5 manager selected pursuant to an open and competitive bidding

6 process as set forth in Section 7.5 and as provided in Section

7 7.4.

8 (b) The Board may locate any casino or riverboat on which a

9 gambling operation is conducted by the State in any home dock

10 or otherlocation authorized by Section 3(c) upon receipt of

11 approval from a majority vote of the governing body of the

12 municipality or county, as the case may be, in which the

13 riverboat will dock.

14 (c) The Board shall have jurisdiction over and shall

15 supervise all gambling operations conducted by the State

16 provided for in this Act and the Chicago Casino Development

17 Authority Actand shall have all powers necessary and proper to

18 fully and effectively execute the provisions of this Actand

19 the Chicago Casino Development Authority Act relating to

20 gambling operations conducted by the State.

21 (d) The maximum number of owners licenses authorized under

22 Section 7~~7(e)~~shall be reduced by one for each instance in

23 which the Board authorizes the State to conduct acasino or

24 riverboat gambling operation under subsection (a) in lieu of

25 re-issuing a license to an applicant under Section 7.1.

26 (Source: P.A. 93-28, eff. 6-20-03.)

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1 (230 ILCS 10/7.5)

2 Sec. 7.5. Competitive Bidding. When the Board determines

3 that (i)it will re-issue an owners license pursuant to an open

4 and competitive bidding process, as set forth in Section 7.1,

5 (ii) ~~or that~~it will issue a managers license pursuant to an

6 open and competitive bidding process, as set forth in Section

7 7.4, (iii) it will issue an owners license pursuant to an open

8 and competitive bidding process, as set forth in Section 7.11,

9 or (iv) it will allocate unused gaming positions pursuant to an

10 open and competitive bidding process, as set forth in

11 subsection (h-10) of Section 7, the open and competitive

12 bidding process shall adhere to the following procedures:

13 (1) The Board shall make applications for owners and

14 managers licenses available to the public and allow a

15 reasonable time for applicants to submit applications to the

16 Board.

17 (2) During the filing period for owners or managers license

18 applications, the Board may retain the services of an

19 investment banking firm to assist the Board in conducting the

20 open and competitive bidding process.

21 (3) After receiving all of the bid proposals, the Board

22 shall open all of the proposals in a public forum and disclose

23 the prospective owners or managers names, venture partners, if

24 any, and, in the case of applicants for owners licenses, the

25 locations of the proposed development sites.

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1 (4) The Board shall summarize the terms of the proposals

2 and may make this summary available to the public.

3 (5) The Board shall evaluate the proposals within a

4 reasonable time and select no more than 3 final applicants to

5 make presentations of their proposals to the Board.

6 (6) The final applicants shall make their presentations to

7 the Board on the same day during an open session of the Board.

8 (7) As soon as practicable after the public presentations

9 by the final applicants, the Board, in its discretion, may

10 conduct further negotiations among the 3 final applicants.

11 During such negotiations, each final applicant may increase its

12 license bid or otherwise enhance its bid proposal. At the

13 conclusion of such negotiations, the Board shall select the

14 winning proposal. In the case of negotiations for an owners

15 license, the Board may, at the conclusion of such negotiations,

16 make the determination allowed under Section 7.3(a).

17 (8) Upon selection of a winning bid, the Board shall

18 evaluate the winning bid within a reasonable period of time for

19 licensee suitability in accordance with all applicable

20 statutory and regulatory criteria.

21 (9) If the winning bidder is unable or otherwise fails to

22 consummate the transaction, (including if the Board determines

23 that the winning bidder does not satisfy the suitability

24 requirements), the Board may, on the same criteria, select from

25 the remaining bidders or make the determination allowed under

26 Section 7.3(a).

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1 (Source: P.A. 93-28, eff. 6-20-03.)

2 (230 ILCS 10/7.6 new)

3 Sec. 7.6. Electronic gaming.

4 (a) The General Assembly finds that the horse racing and

5 riverboat gambling industries share many similarities and

6 collectively comprise the bulk of the State's gaming industry.

7 One feature common to both industries is that each is highly

8 regulated by the State of Illinois. The General Assembly

9 further finds, however, that despite their shared features each

10 industry is distinct from the other in that horse racing is and

11 continues to be intimately tied to Illinois' agricultural

12 economy and is, at its core, a spectator sport. This

13 distinction requires the General Assembly to utilize different

14 methods to regulate and promote the horse racing industry

15 throughout the State. The General Assembly finds that in order

16 to promote live horse racing as a spectator sport in Illinois

17 and the agricultural economy of this State, it is necessary to

18 allow electronic gaming at Illinois race tracks as an ancillary

19 use given the success of other states in increasing live racing

20 purse accounts and improving the quality of horses

21 participating in horse race meetings.

22 (b) The Illinois Gaming Board shall award one electronic

23 gaming license to each person or entity having operating

24 control of a race track that applies under Section 56 of the

25 Illinois Horse Racing Act of 1975, subject to the application

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1 and eligibility requirements of this Section. Within 60 days

2 after the effective date of this amendatory Act of the 98th

3 General Assembly, a person or entity having operating control

4 of a race track may submit an application for an electronic

5 gaming license. The application shall be made on such forms as

6 provided by the Board and shall contain such information as the

7 Board prescribes, including, but not limited to, the identity

8 of any race track at which electronic gaming will be conducted,

9 detailed information regarding the ownership and management of

10 the applicant, and detailed personal information regarding the

11 applicant. The application shall specify the number of gaming

12 positions the applicant intends to use and the place where the

13 electronic gaming facility will operate. A person who knowingly

14 makes a false statement on an application is guilty of a Class

15 A misdemeanor.

16 Each applicant shall disclose the identity of every person

17 or entity having a direct or indirect pecuniary interest

18 greater than 1% in any race track with respect to which the

19 license is sought. If the disclosed entity is a corporation,

20 the applicant shall disclose the names and addresses of all

21 stockholders and directors. If the disclosed entity is a

22 limited liability company, the applicant shall disclose the

23 names and addresses of all members and managers. If the

24 disclosed entity is a partnership, the applicant shall disclose

25 the names and addresses of all partners, both general and

26 limited. If the disclosed entity is a trust, the applicant

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1 shall disclose the names and addresses of all beneficiaries.

2 An application shall be filed and considered in accordance

3 with the rules of the Board. Each application for an electronic

4 gaming license shall include a non-refundable application fee

5 of $100,000. In addition, a non-refundable fee of $50,000 shall

6 be paid at the time of filing to defray the costs associated

7 with background investigations conducted by the Board. If the

8 costs of the background investigation exceed $50,000, the

9 applicant shall pay the additional amount to the Board within 7

10 days after a request by the Board. If the costs of the

11 investigation are less than $50,000, the applicant shall

12 receive a refund of the remaining amount. All information,

13 records, interviews, reports, statements, memoranda, or other

14 data supplied to or used by the Board in the course of this

15 review or investigation of an applicant for an electronic

16 gaming license under this Act shall be privileged and strictly

17 confidential and shall be used only for the purpose of

18 evaluating an applicant for an electronic gaming license or a

19 renewal. Such information, records, interviews, reports,

20 statements, memoranda, or other data shall not be admissible as

21 evidence nor discoverable in any action of any kind in any

22 court or before any tribunal, board, agency or person, except

23 for any action deemed necessary by the Board. The application

24 fee shall be deposited into the Gaming Facilities Fee Revenue

25 Fund.

26 Each applicant shall submit with his or her application, on

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1 forms provided by the Board, 2 sets of his or her fingerprints.

2 The Board shall charge each applicant a fee set by the

3 Department of State Police to defray the costs associated with

4 the search and classification of fingerprints obtained by the

5 Board with respect to the applicant's application. This fee

6 shall be paid into the State Police Services Fund.

7 An application of any person or entity having operating

8 control of a race track at which 10 or more persons have worked

9 in the prior year providing or preparing food or beverage or

10 performing custodial or maintenance work must include written

11 proof that the person or entity has entered into a labor peace

12 agreement with each labor organization that is actively engaged

13 in representing and attempting to represent food and beverage,

14 hospitality, custodial, and maintenance workers in this State.

15 If the application does not include the written proof that the

16 applicant has entered into the labor peace agreement, then the

17 application shall not be processed and the application must be

18 resubmitted. For the purposes of this paragraph, "labor peace

19 agreement" means an agreement in which a labor organization

20 waives the right of itself and its members to strike, picket,

21 or otherwise boycott the operation for at least 3 years.

22 (c) The Board shall determine within 120 days after

23 receiving an application for an electronic gaming license

24 whether to grant an electronic gaming license to the applicant.

25 If the Board does not make a determination within that time

26 period, then the Board shall give a written explanation to the

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1 applicant as to why it has not reached a determination and when

2 it reasonably expects to make a determination.

3 The electronic gaming licensee shall purchase up to the

4 amount of electronic gaming positions authorized under this Act

5 within 120 days after receiving its electronic gaming license.

6 If an electronic gaming licensee is prepared to purchase the

7 electronic gaming positions, but is temporarily prohibited

8 from doing so by order of a court of competent jurisdiction or

9 the Board, then the 120-day period is tolled until a resolution

10 is reached.

11 An electronic gaming license shall authorize its holder to

12 conduct electronic gaming at its race track at the following

13 times:

14 (1) On days when it conducts live racing at the track

15 where its electronic gaming facility is located, from 8:00

16 a.m. until 3:00 a.m. on the following day.

17 (2) On days when it is scheduled to conduct simulcast

18 wagering on races run in the United States, from 8:00 a.m.

19 until 3:00 a.m. on the following day.

20 Additionally, the Board may extend these days of operation

21 and hours upon request by an organization licensee as the Board

22 sees fit.

23 A license to conduct electronic gaming and any renewal of

24 an electronic gaming license shall authorize electronic gaming

25 for a period of 4 years. The fee for the issuance or renewal of

26 an electronic gaming license shall be $100,000.

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1 (d) To be eligible to conduct electronic gaming, a person

2 or entity having operating control of a race track must (i)

3 obtain an electronic gaming license, (ii) hold an organization

4 license under the Illinois Horse Racing Act of 1975, (iii) hold

5 an inter-track wagering license, (iv) pay an initial fee of

6 $30,000 per gaming position from electronic gaming licensees

7 where electronic gaming is conducted in Cook County and $17,500

8 for electronic gaming licensees where electronic gaming is

9 located outside of Cook County before beginning to conduct

10 electronic gaming plus make the reconciliation payment

11 required under subsection (i), (v) conduct at least 240 live

12 races at each track per year or for a licensee that is only

13 authorized 350 gaming positions pursuant to subsection (d) of

14 Section 7.6 of this Act, have a fully operational facility

15 running at least 96 live races over a period of at least 15

16 days per year until such time as the total number of gaming

17 positions is increased to 900, (vi) meet the requirements of

18 subsection (a) of Section 56 of the Illinois Horse Racing Act

19 of 1975, (vii) for organization licensees conducting

20 standardbred race meetings that had an open backstretch in

21 2009, keep backstretch barns and dormitories open and

22 operational year-round unless a lesser schedule is mutually

23 agreed to by the organization licensee and the horsemen's

24 association racing at that organization licensee's race

25 meeting, (viii) for organization licensees conducting

26 thoroughbred race meetings, the organization licensee must

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1 maintain accident medical expense liability insurance coverage

2 of $1,000,000 for jockeys, and (ix) meet all other requirements

3 of this Act that apply to owners licensees. Only those persons

4 or entities (or its successors or assigns) that had operating

5 control of a race track and held an inter-track wagering

6 license authorized by the Illinois Racing Board in 2009 are

7 eligible.

8 An electronic gaming licensee may enter into a joint

9 venture with a licensed owner to own, manage, conduct, or

10 otherwise operate the electronic gaming licensee's electronic

11 gaming facilities, unless the electronic gaming licensee has a

12 parent company or other affiliated company that is, directly or

13 indirectly, wholly owned by a parent company that is also

14 licensed to conduct electronic gaming, casino gaming, or their

15 equivalent in another state.

16 All payments by licensees under this subsection (c) shall

17 be deposited into the Gaming Facilities Fee Revenue Fund.

18 (e) A person or entity is ineligible to receive an

19 electronic gaming license if:

20 (1) the person or entity has been convicted of a felony

21 under the laws of this State, any other state, or the

22 United States, including a conviction under the Racketeer

23 Influenced and Corrupt Organizations Act;

24 (2) the person or entity has been convicted of any

25 violation of Article 28 of the Criminal Code of 2012, or

26 substantially similar laws of any other jurisdiction;

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1 (3) the person or entity has submitted an application

2 for a license under this Act that contains false

3 information;

4 (4) the person is a member of the Board;

5 (5) a person defined in (1), (2), (3), or (4) of this

6 subsection (e) is an officer, director, or managerial

7 employee of the entity;

8 (6) the person or entity employs a person defined in

9 (1), (2), (3), or (4) of this subsection (e) who

10 participates in the management or operation of gambling

11 operations authorized under this Act; or

12 (7) a license of the person or entity issued under this

13 Act or a license to own or operate gambling facilities in

14 any other jurisdiction has been revoked.

15 (f) The Board may approve electronic gaming positions

16 statewide as provided in this Section. The authority to operate

17 electronic gaming positions under this Section shall be

18 allocated as follows: up to 1,200 gaming positions for any

19 electronic gaming licensee in Cook County whose electronic

20 gaming license originates with an organization licensee that

21 conducted live racing in calendar year 2010; up to 900 gaming

22 positions for any electronic gaming licensee outside of Cook

23 County whose electronic gaming license originates with an

24 organization licensee that conducted live racing in calendar

25 year 2010; and up to 350 gaming positions for any electronic

26 gaming licensee whose electronic gaming license originates

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1 with an organization licensee that did not conduct live racing

2 in calendar year 2010, which shall increase to 900 gaming

3 positions in the calendar year following the year in which the

4 electronic gaming licensee conducts 96 live races.

5 (g) Each applicant for an electronic gaming license shall

6 specify in its application for licensure the number of gaming

7 positions it will operate, up to the applicable limitation set

8 forth in subsection (f) of this Section. Any unreserved gaming

9 positions that are not specified shall be forfeited and

10 retained by the Board. For the purposes of this subsection (g),

11 an electronic gaming licensee that did not conduct live racing

12 in 2010 may reserve up to 900 positions and shall not be

13 penalized under this Section for not operating those positions

14 until it meets the requirements of subsection (f) of this

15 Section, but such licensee shall not request unreserved gaming

16 positions under this subsection (g) until its 900 positions are

17 all operational.

18 Thereafter, the Board shall publish the number of

19 unreserved electronic gaming positions and shall accept

20 requests for additional positions from any electronic gaming

21 licensee that initially reserved all of the positions that were

22 offered. The Board shall allocate expeditiously the unreserved

23 electronic gaming positions to requesting electronic gaming

24 licensees in a manner that maximizes revenue to the State. The

25 Board may allocate any such unused electronic gaming positions

26 pursuant to an open and competitive bidding process, as

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1 provided under Section 7.5 of this Act. This process shall

2 continue until all unreserved gaming positions have been

3 purchased. All positions obtained pursuant to this process and

4 all positions the electronic gaming licensee specified it would

5 operate in its application must be in operation within 18

6 months after they were obtained or the electronic gaming

7 licensee forfeits the right to operate those positions, but is

8 not entitled to a refund of any fees paid. The Board may, after

9 holding a public hearing, grant extensions so long as the

10 electronic gaming licensee is working in good faith to make the

11 positions operational. The extension may be for a period of 6

12 months. If, after the period of the extension, the electronic

13 gaming licensee has not made the positions operational, then

14 another public hearing must be held by the Board before it may

15 grant another extension.

16 Unreserved gaming positions retained from and allocated to

17 electronic gaming licensees by the Board pursuant to this

18 subsection (g) shall not be allocated to owners licensees

19 pursuant to subsection (h-10) of Section 7 of this Act.

20 For the purpose of this subsection (g), the unreserved

21 gaming positions for each electronic gaming licensee shall be

22 the applicable limitation set forth in subsection (f) of this

23 Section, less the number of reserved gaming positions by such

24 electronic gaming licensee, and the total unreserved gaming

25 positions shall be the aggregate of the unreserved gaming

26 positions for all electronic gaming licensees.

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1 (h) Subject to the approval of the Illinois Gaming Board,

2 an electronic gaming licensee may make modification or

3 additions to any existing buildings and structures to comply

4 with the requirements of this Act. The Illinois Gaming Board

5 shall make its decision after consulting with the Illinois

6 Racing Board. In no case, however, shall the Illinois Gaming

7 Board approve any modification or addition that alters the

8 grounds of the organizational licensee such that the act of

9 live racing is an ancillary activity to electronic gaming.

10 Electronic gaming may take place in existing structures where

11 inter-track wagering is conducted at the race track or a

12 facility within 300 yards of the race track in accordance with

13 the provisions of this Act and the Illinois Horse Racing Act of

14 1975.

15 (i) An electronic gaming licensee may conduct electronic

16 gaming at a temporary facility pending the construction of a

17 permanent facility or the remodeling or relocation of an

18 existing facility to accommodate electronic gaming

19 participants for up to 24 months after the temporary facility

20 begins to conduct electronic gaming. Upon request by an

21 electronic gaming licensee and upon a showing of good cause by

22 the electronic gaming licensee, the Board shall extend the

23 period during which the licensee may conduct electronic gaming

24 at a temporary facility by up to 12 months. The Board shall

25 make rules concerning the conduct of electronic gaming from

26 temporary facilities.

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1 Electronic gaming may take place in existing structures

2 where inter-track wagering is conducted at the race track or a

3 facility within 300 yards of the race track in accordance with

4 the provisions of this Act and the Illinois Horse Racing Act of

5 1975. Any electronic gaming conducted at a permanent facility

6 within 300 yards of the race track in accordance with this Act

7 and the Illinois Horse Racing Act of 1975 shall have an

8 all-weather egress connecting the electronic gaming facility

9 and the race track facility or, on days and hours of live

10 racing, a complimentary shuttle service between the permanent

11 electronic gaming facility and the race track facility and

12 shall not charge electronic gaming participants an additional

13 admission fee to the race track facility.

14 (j) The Illinois Gaming Board must adopt emergency rules in

15 accordance with Section 5-45 of the Illinois Administrative

16 Procedure Act as necessary to ensure compliance with the

17 provisions of this amendatory Act of the 98th General Assembly

18 concerning electronic gaming. The adoption of emergency rules

19 authorized by this subsection (j) shall be deemed to be

20 necessary for the public interest, safety, and welfare.

21 (k) Each electronic gaming licensee who obtains electronic

22 gaming positions must make a reconciliation payment 3 years

23 after the date the electronic gaming licensee begins operating

24 the positions in an amount equal to 75% of the difference

25 between its adjusted gross receipts from electronic gaming and

26 amounts paid to its purse accounts pursuant to item (1) of

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1 subsection (b) of Section 56 of the Illinois Horse Racing Act

2 of 1975 for the 12-month period for which such difference was

3 the largest, minus an amount equal to the initial per position

4 fee paid by the electronic gaming licensee. If this calculation

5 results in a negative amount, then the electronic gaming

6 licensee is not entitled to any reimbursement of fees

7 previously paid. This reconciliation payment may be made in

8 installments over a period of no more than 2 years, subject to

9 Board approval. Any installment payments shall include an

10 annual market interest rate as determined by the Board.

11 All payments by licensees under this subsection (i) shall

12 be deposited into the Gaming Facilities Fee Revenue Fund.

13 (l) As soon as practical after a request is made by the

14 Illinois Gaming Board, to minimize duplicate submissions by the

15 applicant, the Illinois Racing Board must provide information

16 on an applicant for an electronic gaming license to the

17 Illinois Gaming Board.

18 (m) Subject to the approval of the Illinois Gaming Board,

19 an organization licensee that has received an electronic gaming

20 license under this Act and has operating control of a race

21 track facility located in Cook County may relocate its race

22 track facility as follows:

23 (1) the organization licensee may relocate within a

24 3-mile radius of its existing race track facility so long

25 as the organization licensee remains in Cook County and

26 submits its plan to construct a new structure to conduct

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1 electronic gaming operations; and

2 (2) the organization licensee may not relocate within a

3 5-mile radius of a riverboat if the owners license was

4 issued prior to December 31, 2011.

5 The relocation must include the race track facility, including

6 the race track operations used to conduct live racing and the

7 electronic gaming facility in its entirety. For the purposes of

8 this subsection (m), "race track facility" means all operations

9 conducted on the race track property for which it was awarded a

10 license for pari-mutuel wagering and live racing in the year

11 2010, except for the real estate itself. The Illinois Gaming

12 Board shall make its decision after consulting with the

13 Illinois Racing Board, and any relocation application shall be

14 subject to all of the provisions of this Act and the Illinois

15 Horse Racing Act of 1975.

16 (230 ILCS 10/7.7 new)

17 Sec. 7.7. Home rule. The regulation and licensing of

18 electronic gaming and electronic gaming licensees are

19 exclusive powers and functions of the State. A home rule unit

20 may not regulate or license electronic gaming or electronic

21 gaming licensees. This Section is a denial and limitation of

22 home rule powers and functions under subsection (h) of Section

23 6 of Article VII of the Illinois Constitution.

24 (230 ILCS 10/7.8 new)

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1 Sec. 7.8. Casino operator license.

2 (a) A qualified person may apply to the Board for a casino

3 operator license to operate and manage any gambling operation

4 conducted by the Authority. The application shall be made on

5 forms provided by the Board and shall contain such information

6 as the Board prescribes, including but not limited to

7 information required in Sections 6(a), (b), and (c) and

8 information relating to the applicant's proposed price to

9 manage the Authority's gambling operations and to provide the

10 casino, gambling equipment, and supplies necessary to conduct

11 Authority gambling operations. The application shall also

12 include a non-refundable application fee of $100,000. This

13 application fee shall be deposited into the Gaming Facilities

14 Fee Revenue Fund.

15 (b) A person or entity is ineligible to receive a casino

16 operator license if:

17 (1) the person has been convicted of a felony under the

18 laws of this State, any other state, or the United States;

19 (2) the person has been convicted of any violation of

20 Article 28 of the Criminal Code of 2012, or substantially

21 similar laws of any other jurisdiction;

22 (3) the person has submitted an application for a

23 license under this Act or the Chicago Casino Development

24 Authority Act which contains false information;

25 (4) the person is a member of the Board or the Chicago

26 Casino Development Board or the person is an official or

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1 employee of the Chicago Casino Development Authority or the

2 City of Chicago;

3 (5) a person defined in (1), (2), (3), or (4) is an

4 officer, director, or managerial employee of the entity;

5 (6) the entity employs a person defined in (1), (2),

6 (3), or (4) who participates in the management or operation

7 of gambling operations authorized under this Act; or

8 (7) a license of the person or entity issued under this

9 Act, or a license to own or operate gambling facilities in

10 any other jurisdiction, has been revoked.

11 (c) In determining whether to grant a casino operator

12 license, the Board shall consider:

13 (1) the character, reputation, experience and

14 financial integrity of the applicants and of any other or

15 separate person that either:

16 (A) controls, directly or indirectly, such

17 applicant, or

18 (B) is controlled, directly or indirectly, by such

19 applicant or by a person which controls, directly or

20 indirectly, such applicant;

21 (2) the facilities or proposed facilities for the

22 conduct of gambling;

23 (3) the preference of the municipality in which the

24 licensee will operate;

25 (4) the extent to which the ownership of the applicant

26 reflects the diversity of the State by including minority

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1 persons and females and the good faith affirmative action

2 plan of each applicant to recruit, train, and upgrade

3 minority persons and females in all employment

4 classifications;

5 (5) the financial ability of the applicant to purchase

6 and maintain adequate liability and casualty insurance;

7 (6) whether the applicant has adequate capitalization

8 to provide and maintain, for the duration of a license, a

9 casino; and

10 (7) the extent to which the applicant exceeds or meets

11 other standards for the issuance of a casino operator

12 license that the Board may adopt by rule.

13 (d) Each applicant shall submit with his or her

14 application, on forms prescribed by the Board, 2 sets of his or

15 her fingerprints. The Board shall charge each applicant a fee

16 set by the Department of State Police to defray the costs

17 associated with the search and classification of fingerprints

18 obtained by the Board with respect to the applicant's

19 application. This fee shall be paid into the State Police

20 Services Fund.

21 (e) A person who knowingly makes a false statement on an

22 application is guilty of a Class A misdemeanor.

23 (f) The Board shall charge each applicant a non-refundable

24 fee of $50,000 to defray the costs associated with the

25 background investigation conducted by the Board. This fee shall

26 be exclusive of any other fee or fees charged in connection

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1 with an application for and, if applicable, the issuance of, a

2 casino operator license. If the costs of the investigation

3 exceed $50,000, the Board shall immediately notify the

4 applicant of the additional amount owed, payment of which must

5 be submitted to the Board within 7 days after such

6 notification. All information, records, interviews, reports,

7 statements, memoranda, or other data supplied to or used by the

8 Board in the course of its review or investigation of an

9 application for a license or a renewal under this Act shall be

10 privileged and strictly confidential and shall be used only for

11 the purpose of evaluating an applicant for a license or a

12 renewal. Such information, records, interviews, reports,

13 statements, memoranda, or other data shall not be admissible as

14 evidence, nor discoverable in any action of any kind in any

15 court or before any tribunal, board, agency, or person, except

16 for any action deemed necessary by the Board.

17 (g) The casino operator license shall be issued only upon

18 proof that the applicant has entered into a labor peace

19 agreement with each labor organization that is actively engaged

20 in representing and attempting to represent casino and

21 hospitality industry workers in this State. The labor peace

22 agreement must be a valid and enforceable agreement under 29

23 U.S.C. 185 that protects the city's and State's revenues from

24 the operation of the casino facility by prohibiting the labor

25 organization and its members from engaging in any picketing,

26 work stoppages, boycotts, or any other economic interference

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1 with the casino facility for at least the first 5 years of the

2 casino license and must cover all operations at the casino

3 facility that are conducted by lessees or tenants or under

4 management agreements.

5 (h) The casino operator license shall be for a term of 4

6 years, shall be renewable by the Board, and shall contain such

7 terms and provisions as the Board deems necessary to protect or

8 enhance the credibility and integrity of State gambling

9 operations, achieve the highest prospective total revenue to

10 the State, and otherwise serve the interests of the citizens of

11 Illinois. The Board may suspend, restrict, or revoke the

12 license:

13 (1) for violation of any provision of this Act;

14 (2) for violation of any rules of the Board;

15 (3) for any cause which, if known to the Board, would

16 have disqualified the applicant from receiving the

17 license; or

18 (4) for any other just cause.

19 (230 ILCS 10/7.9 new)

20 Sec. 7.9. Diversity program.

21 (a) Each owners licensee, electronic gaming licensee,

22 casino operator licensee, and suppliers licensee shall

23 establish and maintain a diversity program to ensure

24 non-discrimination in the award and administration of

25 contracts. The programs shall establish goals of awarding not

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1 less than 20% of the annual dollar value of all contracts,

2 purchase orders, or other agreements to minority-owned

3 businesses and 5% of the annual dollar value of all contracts

4 to female-owned businesses.

5 (b) Each owners licensee, electronic gaming licensee,

6 casino operator licensee, and suppliers licensee shall

7 establish and maintain a diversity program designed to promote

8 equal opportunity for employment. The program shall establish

9 hiring goals as the Board and each licensee determines

10 appropriate. The Board shall monitor the progress of the gaming

11 licensee's progress with respect to the program's goals.

12 (c) No later than May 31 of each year, each licensee shall

13 report to the Board the number of respective employees and the

14 number of their respective employees who have designated

15 themselves as members of a minority group and gender. In

16 addition, all licensees shall submit a report with respect to

17 the minority-owned and female-owned businesses program created

18 in this Section to the Board.

19 (230 ILCS 10/7.10 new)

20 Sec. 7.10. Annual report on diversity.

21 (a) Each licensee that receives a license under Sections 7,

22 7.1, and 7.6 shall execute and file a report with the Board no

23 later than December 31 of each year that shall contain, but not

24 be limited to, the following information:

25 (i) a good faith affirmative action plan to recruit,

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1 train, and upgrade minority persons, females, and persons

2 with a disability in all employment classifications;

3 (ii) the total dollar amount of contracts that were

4 awarded to businesses owned by minority persons, females,

5 and persons with a disability;

6 (iii) the total number of businesses owned by minority

7 persons, females, and persons with a disability that were

8 utilized by the licensee;

9 (iv) the utilization of businesses owned by minority

10 persons, females, and persons with disabilities during the

11 preceding year; and

12 (v) the outreach efforts used by the licensee to

13 attract investors and businesses consisting of minority

14 persons, females, and persons with a disability.

15 (b) The Board shall forward a copy of each licensee's

16 annual reports to the General Assembly no later than February 1

17 of each year.

18 (230 ILCS 10/7.11 new)

19 Sec. 7.11. Issuance of new owners licenses.

20 (a) Except for the owners license issued to the Chicago

21 Casino Development Authority, owners licenses newly authorized

22 pursuant to this amendatory Act of the 98th General Assembly

23 may be issued by the Board to a qualified applicant pursuant to

24 an open and competitive bidding process, as set forth in

25 Section 7.5, and subject to the maximum number of authorized

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1 licenses set forth in subsection (e-5) of Section 7 of this

2 Act.

3 (b) To be a qualified applicant, a person or entity may not

4 be ineligible to receive an owners license under subsection (a)

5 of Section 7 of this Act and must submit an application for an

6 owners license that complies with Section 6 of this Act.

7 (c) In determining whether to grant an owners license to an

8 applicant, the Board shall consider all of the factors set

9 forth in subsections (b) and (e-10) of Section 7 of this Act,

10 as well as the amount of the applicant's license bid. The Board

11 may grant the owners license to an applicant that has not

12 submitted the highest license bid, but if it does not select

13 the highest bidder, the Board shall issue a written decision

14 explaining why another applicant was selected and identifying

15 the factors set forth in subsections (b) and (e-10) of Section

16 7 of this Act that favored the winning bidder.

17 (230 ILCS 10/7.12 new)

18 Sec. 7.12. Environmental standards. All permanent

19 casinos, riverboats, and electronic gaming facilities shall

20 consist of buildings that are certified as meeting the U.S.

21 Green Building Council's Leadership in Energy and

22 Environmental Design standards. The provisions of this Section

23 apply to a holder of an owners license, casino operator

24 license, or electronic gaming license that (i) begins

25 operations on or after January 1, 2013 or (ii) relocates its

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1 facilities on or after the effective date of this amendatory

2 Act of the 98th General Assembly.

3 (230 ILCS 10/8) (from Ch. 120, par. 2408)

4 Sec. 8. Suppliers licenses.

5 (a) The Board may issue a suppliers license to such

6 persons, firms or corporations which apply therefor upon the

7 payment of a non-refundable application fee set by the Board,

8 upon a determination by the Board that the applicant is

9 eligible for a suppliers license and upon payment of a $5,000

10 annual license fee.

11 (b) The holder of a suppliers license is authorized to sell

12 or lease, and to contract to sell or lease, gambling equipment

13 and supplies to any licensee involved in the ownership or

14 management of gambling operations.

15 (c) Gambling supplies and equipment may not be distributed

16 unless supplies and equipment conform to standards adopted by

17 rules of the Board.

18 (d) A person, firm or corporation is ineligible to receive

19 a suppliers license if:

20 (1) the person has been convicted of a felony under the

21 laws of this State, any other state, or the United States;

22 (2) the person has been convicted of any violation of

23 Article 28 of the Criminal Code of 1961 or the Criminal

24 Code of 2012, or substantially similar laws of any other

25 jurisdiction;

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1 (3) the person has submitted an application for a

2 license under this Act which contains false information;

3 (4) the person is a member of the Board;

4 (5) the entity ~~firm or corporation~~ is one in which a

5 person defined in (1), (2), (3) or (4), is an officer,

6 director or managerial employee;

7 (6) the firm or corporation employs a person who

8 participates in the management or operation of riverboat

9 gambling authorized under this Act or the Chicago Casino

10 Development Authority Act;

11 (7) the license of the person, firm or corporation

12 issued under this Actor the Chicago Casino Development

13 Authority Act, or a license to own or operate gambling

14 facilities in any other jurisdiction, has been revoked.

15 (e) Any person that supplies any equipment, devices, or

16 supplies to a licensed riverboat gambling operationor casino

17 or electronic gaming operationmust first obtain a suppliers

18 license. A supplier shall furnish to the Board a list of all

19 equipment, devices and supplies offered for sale or lease in

20 connection with gambling games authorized under this Act. A

21 supplier shall keep books and records for the furnishing of

22 equipment, devices and supplies to gambling operations

23 separate and distinct from any other business that the supplier

24 might operate. A supplier shall file a quarterly return with

25 the Board listing all sales and leases. A supplier shall

26 permanently affix its name to all its equipment, devices, and

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1 supplies for gambling operations. Any supplier's equipment,

2 devices or supplies which are used by any person in an

3 unauthorized gambling operation shall be forfeited to the

4 State. A holder of an owners license or an electronic gaming

5 license ~~A licensed owner~~ may own its own equipment, devices and

6 supplies. Each holder of an owners licenseor an electronic

7 gaming licenseunder the Act shall file an annual report

8 listing its inventories of gambling equipment, devices and

9 supplies.

10 (f) Any person who knowingly makes a false statement on an

11 application is guilty of a Class A misdemeanor.

12 (g) Any gambling equipment, devices and supplies provided

13 by any licensed supplier may either be repaired on the

14 riverboat, in the casino, or at the electronic gaming facility

15 orremoved from the riverboat, casino, or electronic gaming

16 facility to a ~~an on-shore~~ facility owned by the holder of an

17 owners licenseor electronic gaming license for repair.

18 (Source: P.A. 97-1150, eff. 1-25-13.)

19 (230 ILCS 10/9) (from Ch. 120, par. 2409)

20 Sec. 9. Occupational licenses.

21 (a) The Board may issue an occupational license to an

22 applicant upon the payment of a non-refundable fee set by the

23 Board, upon a determination by the Board that the applicant is

24 eligible for an occupational license and upon payment of an

25 annual license fee in an amount to be established. To be

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1 eligible for an occupational license, an applicant must:

2 (1) be at least 21 years of age if the applicant will

3 perform any function involved in gaming by patrons. Any

4 applicant seeking an occupational license for a non-gaming

5 function shall be at least 18 years of age;

6 (2) not have been convicted of a felony offense, a

7 violation of Article 28 of the Criminal Code of 1961 or the

8 Criminal Code of 2012, or a similar statute of any other

9 jurisdiction;

10 (2.5) not have been convicted of a crime, other than a

11 crime described in item (2) of this subsection (a),

12 involving dishonesty or moral turpitude, except that the

13 Board may, in its discretion, issue an occupational license

14 to a person who has been convicted of a crime described in

15 this item (2.5) more than 10 years prior to his or her

16 application and has not subsequently been convicted of any

17 other crime;

18 (3) have demonstrated a level of skill or knowledge

19 which the Board determines to be necessary in order to

20 operate gambling aboard a riverboat, in a casino, or at an

21 electronic gaming facility; and

22 (4) have met standards for the holding of an

23 occupational license as adopted by rules of the Board. Such

24 rules shall provide that any person or entity seeking an

25 occupational license to manage gambling operationsunder

26 this Act or the Chicago Casino Development Authority Act

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1 ~~hereunder~~ shall be subject to background inquiries and

2 further requirements similar to those required of

3 applicants for an owners license. Furthermore, such rules

4 shall provide that each such entity shall be permitted to

5 manage gambling operations for only one licensed owner.

6 (b) Each application for an occupational license shall be

7 on forms prescribed by the Board and shall contain all

8 information required by the Board. The applicant shall set

9 forth in the application: whether he has been issued prior

10 gambling related licenses; whether he has been licensed in any

11 other state under any other name, and, if so, such name and his

12 age; and whether or not a permit or license issued to him in

13 any other state has been suspended, restricted or revoked, and,

14 if so, for what period of time.

15 (c) Each applicant shall submit with his application, on

16 forms provided by the Board, 2 sets of his fingerprints. The

17 Board shall charge each applicant a fee set by the Department

18 of State Police to defray the costs associated with the search

19 and classification of fingerprints obtained by the Board with

20 respect to the applicant's application. These fees shall be

21 paid into the State Police Services Fund.

22 (d) The Board may in its discretion refuse an occupational

23 license to any person: (1) who is unqualified to perform the

24 duties required of such applicant; (2) who fails to disclose or

25 states falsely any information called for in the application;

26 (3) who has been found guilty of a violation of this Actor the

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1 Chicago Casino Development Authority Act or whose prior

2 gambling related license or application therefor has been

3 suspended, restricted, revoked or denied for just cause in any

4 other state; or (4) for any other just cause.

5 (e) The Board may suspend, revoke or restrict any

6 occupational licensee: (1) for violation of any provision of

7 this Act; (2) for violation of any of the rules and regulations

8 of the Board; (3) for any cause which, if known to the Board,

9 would have disqualified the applicant from receiving such

10 license; or (4) for default in the payment of any obligation or

11 debt due to the State of Illinois; or (5) for any other just

12 cause.

13 (f) A person who knowingly makes a false statement on an

14 application is guilty of a Class A misdemeanor.

15 (g) Any license issued pursuant to this Section shall be

16 valid for a period of one year from the date of issuance.

17 (h) Nothing in this Act shall be interpreted to prohibit a

18 licensed owneror electronic gaming licensee from entering into

19 an agreement with a public community college or a school

20 approved under the Private Business and Vocational Schools Act

21 of 2012 for the training of any occupational licensee. Any

22 training offered by such a school shall be in accordance with a

23 written agreement between the licensed owner or electronic

24 gaming licensee and the school.

25 (i) Any training provided for occupational licensees may be

26 conducted eitherat the site of the gambling facility ~~on the~~

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1 ~~riverboat~~ or at a school with which a licensed owner or

2 electronic gaming licenseehas entered into an agreement

3 pursuant to subsection (h).

4 (Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;

5 97-1150, eff. 1-25-13.)

6 (230 ILCS 10/11) (from Ch. 120, par. 2411)

7 Sec. 11. Conduct of gambling. Gambling may be conducted by

8 licensed owners or licensed managers on behalf of the State

9 aboard riverboats. Gambling may be conducted by electronic

10 gaming licensees at electronic gaming facilities. Gambling may

11 be conducted by a casino operator licensee at a casino.

12 Gambling authorized under this Section is ~~,~~subject to the

13 following standards:

14 (1) A licensee may conduct riverboat gambling

15 authorized under this Act regardless of whether it conducts

16 excursion cruises. A licensee may permit the continuous

17 ingress and egress of patrons ~~passengers~~ on a riverboat not

18 used for excursion cruises for the purpose of gambling.

19 Excursion cruises shall not exceed 4 hours for a round

20 trip. However, the Board may grant express approval for an

21 extended cruise on a case-by-case basis.

22 (2) (Blank).

23 (3) Minimum and maximum wagers on games shall be set by

24 the licensee.

25 (4) Agents of the Board and the Department of State

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1 Police may board and inspect any riverboat, enter and

2 inspect any portion of a casino, or enter and inspect any

3 portion of an electronic gaming facility at any time for

4 the purpose of determining whether this Actor the Chicago

5 Casino Development Authority Act is being complied with.

6 Every riverboat, if under way and being hailed by a law

7 enforcement officer or agent of the Board, must stop

8 immediately and lay to.

9 (5) Employees of the Board shall have the right to be

10 present on the riverboator in the casino or on adjacent

11 facilities under the control of the licensee and at the

12 electronic gaming facility under the control of the

13 electronic gaming licensee.

14 (6) Gambling equipment and supplies customarily used

15 in conducting riverboator casino gambling or electronic

16 gaming must be purchased or leased only from suppliers

17 licensed for such purpose under this Act. The Board may

18 approve the transfer, sale, or lease of gambling equipment

19 and supplies by a licensed owner from or to an affiliate of

20 the licensed owner as long as the gambling equipment and

21 supplies were initially acquired from a supplier licensed

22 in Illinois.

23 (7) Persons licensed under this Act or the Chicago

24 Casino Development Authority Act shall permit no form of

25 wagering on gambling games except as permitted by this Act.

26 (8) Wagers may be received only from a person present

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1 on a licensed riverboat, in a casino, or at an electronic

2 gaming facility. No person present on a licensed riverboat,

3 in a casino, or at an electronic gaming facility shall

4 place or attempt to place a wager on behalf of another

5 person who is not present on the riverboat, in a casino, or

6 at the electronic gaming facility.

7 (9) Wagering, including electronic gaming, shall not

8 be conducted with money or other negotiable currency.

9 (10) A person under age 21 shall not be permitted on an

10 area of a riverboator casino where gambling is being

11 conducted or at an electronic gaming facility where

12 gambling is being conducted, except for a person at least

13 18 years of age who is an employee of the riverboat or

14 casino gambling operation or electronic gaming operation.

15 No employee under age 21 shall perform any function

16 involved in gambling by the patrons. No person under age 21

17 shall be permitted to make a wager under this Actor the

18 Chicago Casino Development Authority Act, and any winnings

19 that are a result of a wager by a person under age 21,

20 whether or not paid by a licensee, shall be treated as

21 winnings for the privilege tax purposes, confiscated, and

22 forfeited to the State and deposited into the Education

23 Assistance Fund.

24 (11) Gambling excursion cruises are permitted only

25 when the waterway for which the riverboat is licensed is

26 navigable, as determined by the Board in consultation with

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1 the U.S. Army Corps of Engineers. This paragraph (11) does

2 not limit the ability of a licensee to conduct gambling

3 authorized under this Act when gambling excursion cruises

4 are not permitted.

5 (12) All tokens, chips or electronic cards used to make

6 wagers must be purchased(i) from a licensed owner or

7 manager, in the case of a riverboat, either aboard a

8 riverboat or at an onshore facility which has been approved

9 by the Board and which is located where the riverboat

10 docks, (ii) in the case of a casino, from a licensed owner

11 or licensed casino operator at the casino, or (iii) from an

12 electronic gaming licensee at the electronic gaming

13 facility. The tokens, chips or electronic cards may be

14 purchased by means of an agreement under which the owner,

15 ~~or~~ manager, or licensed casino operatorextends credit to

16 the patron. Such tokens, chips or electronic cards may be

17 used while aboard the riverboat, in the casino, or at the

18 electronic gaming facility only for the purpose of making

19 wagers on gambling games.

20 (13) Notwithstanding any other Section of this Act or

21 the Chicago Casino Development Authority Act, in addition

22 to the other licenses authorized under this Actor the

23 Chicago Casino Development Authority Act, the Board may

24 issue special event licenses allowing persons who are not

25 otherwise licensed to conduct riverboat gambling to

26 conduct such gambling on a specified date or series of

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1 dates. Riverboat gambling under such a license may take

2 place on a riverboat not normally used for riverboat

3 gambling. The Board shall establish standards, fees and

4 fines for, and limitations upon, such licenses, which may

5 differ from the standards, fees, fines and limitations

6 otherwise applicable under this Act or the Chicago Casino

7 Development Authority Act. All such fees shall be deposited

8 into the State Gaming Fund. All such fines shall be

9 deposited into the Education Assistance Fund, created by

10 Public Act 86-0018, of the State of Illinois.

11 (14) In addition to the above, gambling must be

12 conducted in accordance with all rules adopted by the

13 Board.

14 (Source: P.A. 96-1392, eff. 1-1-11.)

15 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)

16 Sec. 11.1. Collection of amounts owing under credit

17 agreements. Notwithstanding any applicable statutory provision

18 to the contrary, a licensed owner, licensed ~~or~~ manager,

19 licensed casino operator, or electronic gaming licensee who

20 extends credit to a ~~riverboat~~ gambling patron or an electronic

21 gaming patronpursuant to Section 11 (a) (12) of this Act is

22 expressly authorized to institute a cause of action to collect

23 any amounts due and owing under the extension of credit, as

24 well as the licensed owner's, licensed ~~or~~ manager's, licensed

25 casino operator's, or electronic gaming licensee's costs,

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1 expenses and reasonable attorney's fees incurred in

2 collection.

3 (Source: P.A. 93-28, eff. 6-20-03.)

4 (230 ILCS 10/12) (from Ch. 120, par. 2412)

5 Sec. 12. Admission tax; fees.

6 (a) A tax is hereby imposed upon admissions to riverboat

7 and casino gambling facilities ~~riverboats~~operated by licensed

8 owners authorized pursuant to this Act and the Chicago Casino

9 Development Authority Act. Until July 1, 2002, the rate is $2

10 per person admitted. From July 1, 2002 until July 1, 2003, the

11 rate is $3 per person admitted. From July 1, 2003 until August

12 23, 2005 (the effective date of Public Act 94-673), for a

13 licensee that admitted 1,000,000 persons or fewer in the

14 previous calendar year, the rate is $3 per person admitted; for

15 a licensee that admitted more than 1,000,000 but no more than

16 2,300,000 persons in the previous calendar year, the rate is $4

17 per person admitted; and for a licensee that admitted more than

18 2,300,000 persons in the previous calendar year, the rate is $5

19 per person admitted. Beginning on August 23, 2005 (the

20 effective date of Public Act 94-673), for a licensee that

21 admitted 1,000,000 persons or fewer in calendar year 2004, the

22 rate is $2 per person admitted, and for all other licensees,

23 including licensees that were not conducting gambling

24 operations in 2004, the rate is $3 per person admitted. This

25 admission tax is imposed upon the licensed owner conducting

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1 gambling.

2 (1) The admission tax shall be paid for each admission,

3 except that a person who exits a riverboat gambling

4 facility and reenters that riverboat gambling facility

5 within the same gaming day shall be subject only to the

6 initial admission tax.

7 (2) (Blank).

8 (3) The riverboat licensee may issue tax-free passes to

9 actual and necessary officials and employees of the

10 licensee or other persons actually working on the

11 riverboat.

12 (4) The number and issuance of tax-free passes is

13 subject to the rules of the Board, and a list of all

14 persons to whom the tax-free passes are issued shall be

15 filed with the Board.

16 (a-5) A fee is hereby imposed upon admissions operated by

17 licensed managers on behalf of the State pursuant to Section

18 7.3 at the rates provided in this subsection (a-5). For a

19 licensee that admitted 1,000,000 persons or fewer in the

20 previous calendar year, the rate is $3 per person admitted; for

21 a licensee that admitted more than 1,000,000 but no more than

22 2,300,000 persons in the previous calendar year, the rate is $4

23 per person admitted; and for a licensee that admitted more than

24 2,300,000 persons in the previous calendar year, the rate is $5

25 per person admitted.

26 (1) The admission fee shall be paid for each admission.

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1 (2) (Blank).

2 (3) The licensed manager may issue fee-free passes to

3 actual and necessary officials and employees of the manager

4 or other persons actually working on the riverboat.

5 (4) The number and issuance of fee-free passes is

6 subject to the rules of the Board, and a list of all

7 persons to whom the fee-free passes are issued shall be

8 filed with the Board.

9 (b) From the tax imposed under subsection (a) and the fee

10 imposed under subsection (a-5), a municipality shall receive

11 from the State $1 for each person embarking on a riverboat

12 docked within the municipality or entering a casino located

13 within the municipality, and a county shall receive $1 for each

14 person entering a casino or embarking on a riverboat docked

15 within the county but outside the boundaries of any

16 municipality. The municipality's or county's share shall be

17 collected by the Board on behalf of the State and remitted

18 quarterly by the State, subject to appropriation, to the

19 treasurer of the unit of local government for deposit in the

20 general fund.

21 (c) The licensed owner shall pay the entire admission tax

22 to the Board and the licensed manageror the casino operator

23 licenseeshall pay the entire admission fee to the Board. Such

24 payments shall be made daily. Accompanying each payment shall

25 be a return on forms provided by the Board which shall include

26 other information regarding admissions as the Board may

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1 require. Failure to submit either the payment or the return

2 within the specified time may result in suspension or

3 revocation of the owners or managers license.

4 (c-5) A tax is imposed on admissions to electronic gaming

5 facilities at the rate of $3 per person admitted by an

6 electronic gaming licensee. The tax is imposed upon the

7 electronic gaming licensee.

8 (1) The admission tax shall be paid for each admission,

9 except that a person who exits an electronic gaming

10 facility and reenters that electronic gaming facility

11 within the same gaming day, as the term "gaming day" is

12 defined by the Board by rule, shall be subject only to the

13 initial admission tax. The Board shall establish, by rule,

14 a procedure to determine whether a person admitted to an

15 electronic gaming facility has paid the admission tax.

16 (2) An electronic gaming licensee may issue tax-free

17 passes to actual and necessary officials and employees of

18 the licensee and other persons associated with electronic

19 gaming operations.

20 (3) The number and issuance of tax-free passes is

21 subject to the rules of the Board, and a list of all

22 persons to whom the tax-free passes are issued shall be

23 filed with the Board.

24 (4) The electronic gaming licensee shall pay the entire

25 admission tax to the Board.

26 Such payments shall be made daily. Accompanying each

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1 payment shall be a return on forms provided by the Board, which

2 shall include other information regarding admission as the

3 Board may require. Failure to submit either the payment or the

4 return within the specified time may result in suspension or

5 revocation of the electronic gaming license.

6 From the tax imposed under this subsection (c-5), a

7 municipality other than the Village of Stickney or the City of

8 Collinsville in which an electronic gaming facility is located,

9 or if the electronic gaming facility is not located within a

10 municipality, then the county in which the electronic gaming

11 facility is located, except as otherwise provided in this

12 Section, shall receive, subject to appropriation, $1 for each

13 person who enters the electronic gaming facility. For each

14 admission to the electronic gaming facility in excess of

15 1,500,000 in a year, from the tax imposed under this subsection

16 (c-5), the county in which the electronic gaming facility is

17 located shall receive, subject to appropriation, $0.30, which

18 shall be in addition to any other moneys paid to the county

19 under this Section.

20 From the tax imposed under this subsection (c-5) on an

21 electronic gaming facility located in the Village of Stickney,

22 $1 for each person who enters the electronic gaming facility

23 shall be distributed as follows, subject to appropriation:

24 $0.24 to the Village of Stickney, $0.49 to the Town of Cicero,

25 $0.05 to the City of Berwyn, and $0.17 to the Stickney Public

26 Health District, and $0.05 to the Village of Bridgeview.

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1 From the tax imposed under this subsection (c-5) on an

2 electronic gaming facility located in the City of Collinsville,

3 $1 for each person who enters the electronic gaming facility

4 shall be distributed as follows, subject to appropriation:

5 $0.45 to the City of Alton, $0.45 to the City of East St.

6 Louis, and $0.10 to the City of Collinsville.

7 From the tax imposed under this subsection (c-5) on an

8 electronic gaming facility that is located in an unincorporated

9 area of Cook County and has been awarded standardbred racing

10 dates during 2011 by the Illinois Racing Board, $1 for each

11 person who enters the electronic gaming facility shall be

12 divided equally and distributed, subject to appropriation, to

13 the Village of Melrose Park, the Village of Maywood, and Cook

14 County.

15 After payments required under this subsection (c-5) have

16 been made, all remaining amounts shall be deposited into the

17 Education Assistance Fund.

18 (d) The Board shall administer and collect the admission

19 tax imposed by this Section, to the extent practicable, in a

20 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

21 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the

22 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

23 Penalty and Interest Act.

24 (Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)

25 (230 ILCS 10/13) (from Ch. 120, par. 2413)

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1 Sec. 13. Wagering tax; rate; distribution.

2 (a) Until January 1, 1998, a tax is imposed on the adjusted

3 gross receipts received from gambling games authorized under

4 this Act at the rate of 20%.

5 (a-1) From January 1, 1998 until July 1, 2002, a privilege

6 tax is imposed on persons engaged in the business of conducting

7 riverboat gambling operations, based on the adjusted gross

8 receipts received by a licensed owner from gambling games

9 authorized under this Act at the following rates:

10 15% of annual adjusted gross receipts up to and

11 including $25,000,000;

12 20% of annual adjusted gross receipts in excess of

13 $25,000,000 but not exceeding $50,000,000;

14 25% of annual adjusted gross receipts in excess of

15 $50,000,000 but not exceeding $75,000,000;

16 30% of annual adjusted gross receipts in excess of

17 $75,000,000 but not exceeding $100,000,000;

18 35% of annual adjusted gross receipts in excess of

19 $100,000,000.

20 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax

21 is imposed on persons engaged in the business of conducting

22 riverboat gambling operations, other than licensed managers

23 conducting riverboat gambling operations on behalf of the

24 State, based on the adjusted gross receipts received by a

25 licensed owner from gambling games authorized under this Act at

26 the following rates:

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1 15% of annual adjusted gross receipts up to and

2 including $25,000,000;

3 22.5% of annual adjusted gross receipts in excess of

4 $25,000,000 but not exceeding $50,000,000;

5 27.5% of annual adjusted gross receipts in excess of

6 $50,000,000 but not exceeding $75,000,000;

7 32.5% of annual adjusted gross receipts in excess of

8 $75,000,000 but not exceeding $100,000,000;

9 37.5% of annual adjusted gross receipts in excess of

10 $100,000,000 but not exceeding $150,000,000;

11 45% of annual adjusted gross receipts in excess of

12 $150,000,000 but not exceeding $200,000,000;

13 50% of annual adjusted gross receipts in excess of

14 $200,000,000.

15 (a-3) Beginning July 1, 2003, a privilege tax is imposed on

16 persons engaged in the business of conducting riverboat

17 gambling operations, other than licensed managers conducting

18 riverboat gambling operations on behalf of the State, based on

19 the adjusted gross receipts received by a licensed owner from

20 gambling games authorized under this Act at the following

21 rates:

22 15% of annual adjusted gross receipts up to and

23 including $25,000,000;

24 27.5% of annual adjusted gross receipts in excess of

25 $25,000,000 but not exceeding $37,500,000;

26 32.5% of annual adjusted gross receipts in excess of

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1 $37,500,000 but not exceeding $50,000,000;

2 37.5% of annual adjusted gross receipts in excess of

3 $50,000,000 but not exceeding $75,000,000;

4 45% of annual adjusted gross receipts in excess of

5 $75,000,000 but not exceeding $100,000,000;

6 50% of annual adjusted gross receipts in excess of

7 $100,000,000 but not exceeding $250,000,000;

8 70% of annual adjusted gross receipts in excess of

9 $250,000,000.

10 An amount equal to the amount of wagering taxes collected

11 under this subsection (a-3) that are in addition to the amount

12 of wagering taxes that would have been collected if the

13 wagering tax rates under subsection (a-2) were in effect shall

14 be paid into the Common School Fund.

15 The privilege tax imposed under this subsection (a-3) shall

16 no longer be imposed beginning on the earlier of (i) July 1,

17 2005; (ii) the first date after June 20, 2003 that riverboat

18 gambling operations are conducted pursuant to a dormant

19 license; or (iii) the first day that riverboat gambling

20 operations are conducted under the authority of an owners

21 license that is in addition to the 10 owners licenses initially

22 authorized under this Act. For the purposes of this subsection

23 (a-3), the term "dormant license" means an owners license that

24 is authorized by this Act under which no riverboat gambling

25 operations are being conducted on June 20, 2003.

26 (a-4) Beginning on the first day on which the tax imposed

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1 under subsection (a-3) is no longer imposedand ending upon the

2 imposition of the privilege tax under subsection (a-5) of this

3 Section, a privilege tax is imposed on persons engaged in the

4 business of conducting riverboat or casino gambling or

5 electronic gamingoperations, other than licensed managers

6 conducting riverboat gambling operations on behalf of the

7 State, based on the adjusted gross receipts received by a

8 licensed owner from gambling games authorized under this Act at

9 the following rates:

10 15% of annual adjusted gross receipts up to and

11 including $25,000,000;

12 22.5% of annual adjusted gross receipts in excess of

13 $25,000,000 but not exceeding $50,000,000;

14 27.5% of annual adjusted gross receipts in excess of

15 $50,000,000 but not exceeding $75,000,000;

16 32.5% of annual adjusted gross receipts in excess of

17 $75,000,000 but not exceeding $100,000,000;

18 37.5% of annual adjusted gross receipts in excess of

19 $100,000,000 but not exceeding $150,000,000;

20 45% of annual adjusted gross receipts in excess of

21 $150,000,000 but not exceeding $200,000,000;

22 50% of annual adjusted gross receipts in excess of

23 $200,000,000.

24 For the imposition of the privilege tax in this subsection

25 (a-4), amounts paid pursuant to item (1) of subsection (b) of

26 Section 56 of the Illinois Horse Racing Act of 1975 shall not

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1 be included in the determination of adjusted gross receipts.

2 (a-5) Beginning in the fiscal year following the opening of

3 the casino at which gambling operations are conducted pursuant

4 to the Chicago Casino Development Authority Act, but not before

5 July 1, 2015, a privilege tax is imposed on persons engaged in

6 the business of conducting riverboat or casino gambling or

7 electronic gaming operations, other than licensed managers

8 conducting riverboat gambling operations on behalf of the

9 State, based on the adjusted gross receipts received by such

10 licensee from the gambling games authorized under this Act and

11 the Chicago Casino Development Authority Act at the following

12 rates:

13 15% of annual adjusted gross receipts up to and

14 including $25,000,000;

15 20% of annual adjusted gross receipts in excess of

16 $25,000,000 but not exceeding $50,000,000;

17 25% of annual adjusted gross receipts in excess of

18 $50,000,000 but not exceeding $75,000,000;

19 30% of annual adjusted gross receipts in excess of

20 $75,000,000 but not exceeding $100,000,000;

21 35% of annual adjusted gross receipts in excess of

22 $100,000,000 but not exceeding $150,000,000;

23 37.5% of annual adjusted gross receipts in excess of

24 $150,000,000 but not exceeding $200,000,000;

25 42.5% of annual adjusted gross receipts in excess of

26 $200,000,000 but not exceeding $300,000,000;

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1 30% of annual adjusted gross receipts in excess of

2 $300,000,000 but not exceeding $350,000,000;

3 25% of annual adjusted gross receipts in excess of

4 $350,000,000, but not exceeding $700,000,000;

5 50% of annual adjusted gross receipts in excess of

6 $700,000,000.

7 For the imposition of the privilege tax in this subsection

8 (a-5), amounts paid pursuant to item (1) of subsection (b) of

9 Section 56 of the Illinois Horse Racing Act of 1975 shall not

10 be included in the determination of adjusted gross receipts.

11 (a-6) From the effective date of this amendatory Act of the

12 98th General Assembly until June 30, 2017, an owners licensee

13 that conducted gambling operations prior to January 1, 2011

14 shall receive a dollar-for-dollar credit against the tax

15 imposed under this Section for any renovation or construction

16 costs paid by the owners licensee, but in no event shall the

17 credit exceed $2,000,000.

18 Additionally, from the effective date of this amendatory

19 Act of the 98th General Assembly until December 31, 2016, an

20 owners licensee that (i) is located within 15 miles of the

21 Missouri border, and (ii) has at least 3 riverboats, casinos,

22 or their equivalent within a 45-mile radius, may be authorized

23 to relocate to a new location with the approval of both the

24 unit of local government designated as the home dock and the

25 Board, so long as the new location is within the same unit of

26 local government and no more than 3 miles away from its

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1 original location. Such owners licensee shall receive a credit

2 against the tax imposed under this Section equal to 8% of the

3 total project costs, as approved by the Board, for any

4 renovation or construction costs paid by the owners licensee

5 for the construction of the new facility, provided that the new

6 facility is operational by July 1, 2016. In determining whether

7 or not to approve a relocation, the Board must consider the

8 extent to which the relocation will diminish the gaming

9 revenues received by other Illinois gaming facilities.

10 (a-8) Riverboat gambling operations conducted by a

11 licensed manager on behalf of the State are not subject to the

12 tax imposed under this Section.

13 (a-9) Beginning on January 1, 2014, the calculation of

14 gross receipts or adjusted gross receipts, for the purposes of

15 this Section, for a riverboat, casino, or electronic gaming

16 facility shall not include the dollar amount of non-cashable

17 vouchers, coupons, and electronic promotions redeemed by

18 wagerers upon the riverboat, in the casino, or in the

19 electronic gaming facility up to and including an amount not to

20 exceed 30% of a riverboat casino or electronic gaming

21 facility's adjusted gross receipts.

22 The Illinois Gaming Board shall submit to the General

23 Assembly a comprehensive report no later than March 31, 2017

24 detailing, at a minimum, the effect of removing non-cashable

25 vouchers, coupons, and electronic promotions from this

26 calculation on net gaming revenues to the State in calendar

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1 years 2014 through 2016, the increase or reduction in wagerers

2 as a result of removing non-cashable vouchers, coupons, and

3 electronic promotions from this calculation, the effect of the

4 tax rates in subsection (a-5) on net gaming revenues to the

5 State, and proposed modifications to the calculation.

6 (a-10) The taxes imposed by this Section shall be paid by

7 the licensed owneror the electronic gaming licensee to the

8 Board not later than 5:00 o'clock p.m. of the day after the day

9 when the wagers were made.

10 (a-15) If the privilege tax imposed under subsection (a-3)

11 is no longer imposed pursuant to item (i) of the last paragraph

12 of subsection (a-3), then by June 15 of each year, each owners

13 licensee, other than an owners licensee that admitted 1,000,000

14 persons or fewer in calendar year 2004, must, in addition to

15 the payment of all amounts otherwise due under this Section,

16 pay to the Board a reconciliation payment in the amount, if

17 any, by which the licensed owner's base amount exceeds the

18 amount of net privilege tax paid by the licensed owner to the

19 Board in the then current State fiscal year. A licensed owner's

20 net privilege tax obligation due for the balance of the State

21 fiscal year shall be reduced up to the total of the amount paid

22 by the licensed owner in its June 15 reconciliation payment.

23 The obligation imposed by this subsection (a-15) is binding on

24 any person, firm, corporation, or other entity that acquires an

25 ownership interest in any such owners license. The obligation

26 imposed under this subsection (a-15) terminates on the earliest

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1 of: (i) July 1, 2007, (ii) the first day after the effective

2 date of this amendatory Act of the 94th General Assembly that

3 riverboat gambling operations are conducted pursuant to a

4 dormant license, (iii) the first day that riverboat gambling

5 operations are conducted under the authority of an owners

6 license that is in addition to the 10 owners licenses initially

7 authorized under this Act, or (iv) the first day that a

8 licensee under the Illinois Horse Racing Act of 1975 conducts

9 gaming operations with slot machines or other electronic gaming

10 devices. The Board must reduce the obligation imposed under

11 this subsection (a-15) by an amount the Board deems reasonable

12 for any of the following reasons: (A) an act or acts of God,

13 (B) an act of bioterrorism or terrorism or a bioterrorism or

14 terrorism threat that was investigated by a law enforcement

15 agency, or (C) a condition beyond the control of the owners

16 licensee that does not result from any act or omission by the

17 owners licensee or any of its agents and that poses a hazardous

18 threat to the health and safety of patrons. If an owners

19 licensee pays an amount in excess of its liability under this

20 Section, the Board shall apply the overpayment to future

21 payments required under this Section.

22 For purposes of this subsection (a-15):

23 "Act of God" means an incident caused by the operation of

24 an extraordinary force that cannot be foreseen, that cannot be

25 avoided by the exercise of due care, and for which no person

26 can be held liable.

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1 "Base amount" means the following:

2 For a riverboat in Alton, $31,000,000.

3 For a riverboat in East Peoria, $43,000,000.

4 For the Empress riverboat in Joliet, $86,000,000.

5 For a riverboat in Metropolis, $45,000,000.

6 For the Harrah's riverboat in Joliet, $114,000,000.

7 For a riverboat in Aurora, $86,000,000.

8 For a riverboat in East St. Louis, $48,500,000.

9 For a riverboat in Elgin, $198,000,000.

10 "Dormant license" has the meaning ascribed to it in

11 subsection (a-3).

12 "Net privilege tax" means all privilege taxes paid by a

13 licensed owner to the Board under this Section, less all

14 payments made from the State Gaming Fund pursuant to subsection

15 (b) of this Section.

16 The changes made to this subsection (a-15) by Public Act

17 94-839 are intended to restate and clarify the intent of Public

18 Act 94-673 with respect to the amount of the payments required

19 to be made under this subsection by an owners licensee to the

20 Board.

21 (b) Until January 1, 1998, 25% of the tax revenue deposited

22 in the State Gaming Fund under this Section shall be paid,

23 subject to appropriation by the General Assembly, to the unit

24 of local government which is designated as the home dock of the

25 riverboat. Beginning January 1, 1998, from the tax revenue from

26 riverboat or casino gamblingdeposited in the State Gaming Fund

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1 under this Section, an amount equal to 5% of adjusted gross

2 receipts generated by a riverboat or a casino shall be paid

3 monthly, subject to appropriation by the General Assembly, to

4 the unit of local government in which the casino is located or

5 that is designated as the home dock of the riverboat. From the

6 tax revenue deposited in the State Gaming Fund pursuant to

7 riverboat or casinogambling operations conducted by a licensed

8 manager on behalf of the State, an amount equal to 5% of

9 adjusted gross receipts generated pursuant to those riverboat

10 or casinogambling operations shall be paid monthly, subject to

11 appropriation by the General Assembly, to the unit of local

12 government that is designated as the home dock of the riverboat

13 upon which those riverboat gambling operations are conductedor

14 in which the casino is located.

15 (b-4) Beginning on August 1, 2013 and ending on July 31,

16 2042, from the tax revenue deposited in the State Gaming Fund

17 under this Section, $7,500,000 shall be paid annually, subject

18 to appropriation, to the host municipality of an owners

19 licensee of a license issued or re-issued pursuant to Section

20 7.1 of this Act before January 1, 2012. Payments received by

21 the host municipality pursuant to this subsection (b-4) may not

22 be shared with any other unit of local government.

23 (b-5) Beginning on the effective date of this amendatory

24 Act of the 98th General Assembly, from the tax revenue

25 deposited in the State Gaming Fund under this Section, an

26 amount equal to 3% of adjusted gross receipts generated by each

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1 electronic gaming facility located outside Madison County

2 shall be paid monthly, subject to appropriation by the General

3 Assembly, to a municipality other than the Village of Stickney

4 in which each electronic gaming facility is located or, if the

5 electronic gaming facility is not located within a

6 municipality, to the county in which the electronic gaming

7 facility is located, except as otherwise provided in this

8 Section. From the tax revenue deposited in the State Gaming

9 Fund under this Section, an amount equal to 3% of adjusted

10 gross receipts generated by each electronic gaming facility

11 that is located in an unincorporated area of Cook County and

12 has been awarded standardbred racing dates during 2011 by the

13 Illinois Racing Board shall be divided equally and distributed,

14 subject to appropriation, to the Village of Melrose Park, the

15 Village of Maywood, and Cook County. From the tax revenue

16 deposited in the State Gaming Fund under this Section, an

17 amount equal to 3% of adjusted gross receipts generated by an

18 electronic gaming facility located in the Village of Stickney

19 shall be paid monthly, subject to appropriation by the General

20 Assembly, as follows: 25% to the Village of Stickney, 5% to the

21 City of Berwyn, 50% to the Town of Cicero, and 20% to the

22 Stickney Public Health District.

23 From the tax revenue deposited in the State Gaming Fund

24 under this Section, an amount equal to 5% of adjusted gross

25 receipts generated by an electronic gaming facility located in

26 the City of Collinsville shall be paid monthly, subject to

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1 appropriation by the General Assembly, as follows: 45% to the

2 City of Alton, 45% to the City of East St. Louis, and 10% to the

3 City of Collinsville.

4 Municipalities and counties may refund any portion of the

5 payment that they receive pursuant to this subsection (b-5) to

6 the electronic gaming facility.

7 (b-6) Beginning on the effective date of this amendatory

8 Act of the 98th General Assembly, from the tax revenue

9 deposited in the State Gaming Fund under this Section, an

10 amount equal to 2% of adjusted gross receipts generated by an

11 electronic gaming facility located outside Madison County

12 shall be paid monthly, subject to appropriation by the General

13 Assembly, to the county in which the electronic gaming facility

14 is located for the purposes of its criminal justice system or

15 health care system.

16 Counties may refund any portion of the payment that they

17 receive pursuant to this subsection (b-6) to the electronic

18 gaming facility.

19 (b-7) Beginning on the effective date of this amendatory

20 Act of the 98th General Assembly, from the tax revenue

21 deposited in the State Gaming Fund under this Section,

22 $5,000,000 shall be paid annually, subject to appropriation, to

23 the Department of Human Services for the administration of

24 programs to treat problem gambling.

25 (b-8) Beginning in the fiscal year following the opening of

26 the casino at which gambling operations are conducted pursuant

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1 to the Chicago Casino Development Authority Act, but not before

2 July 1, 2015, from the tax revenue deposited in the State

3 Gaming Fund under this Section, $10,000,000 shall be

4 transferred into the State Fairgrounds Capital Improvements

5 Fund annually.

6 (b-9) Beginning in the fiscal year following the opening of

7 the casino at which gambling operations are conducted pursuant

8 to the Chicago Casino Development Authority Act, but not before

9 July 1, 2015, from the tax revenue deposited in the State

10 Gaming Fund under this Section, an amount equal to 3% of the

11 wagering taxes paid by the riverboats and casino created

12 pursuant to subsection (e-5) of Section 7 shall be transferred

13 into the Depressed Communities Economic Development Fund

14 annually.

15 (b-10) Beginning in the fiscal year following the opening

16 of the casino at which gambling operations are conducted

17 pursuant to the Chicago Casino Development Authority Act, but

18 not before July 1, 2015, from the tax revenue deposited in the

19 State Gaming Fund under this Section, an amount equal to 3% of

20 the wagering taxes paid by the riverboats and casino created

21 pursuant to subsection (e-5) of Section 7 shall be transferred

22 into the Latino Community Economic Development Fund annually.

23 (b-11) The State and County Fair Assistance Fund is created

24 as a special fund in the State treasury. The Fund shall be

25 administered by the Department of Agriculture. Beginning in the

26 fiscal year following the opening of the casino at which

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1 gambling operations are conducted pursuant to the Chicago

2 Casino Development Authority Act, but not before July 1, 2015,

3 from the tax revenue deposited in the State Gaming Fund under

4 this Section, $4,500,000 shall be transferred into the State

5 and County Fair Assistance Fund annually. No moneys shall be

6 expended from the State and County Fair Assistance Fund except

7 as appropriated by the General Assembly. Deposits made pursuant

8 to this subsection (b-11) shall supplement, and not supplant,

9 other State funding for these purposes.

10 The Department of Agriculture shall award grants from the

11 moneys appropriated from the State and County Fair Assistance

12 Fund for the development, expansion, or support of county fairs

13 that showcase Illinois agriculture products or byproducts. No

14 grant may exceed $100,000, except for an annual grant of

15 $750,000 that shall be made to the Illinois Standardbred

16 Breeders Fund and used for Illinois-bred harness racing purses

17 and the Illinois State Fair race track. Not more than one grant

18 under this Section may be made to any one county fair board.

19 Additionally, grants under this subsection (b-11) shall be

20 available to the Illinois State Fair and the DuQuoin State

21 Fair.

22 (b-12) Beginning in the fiscal year following the opening

23 of the casino at which gambling operations are conducted

24 pursuant to the Chicago Casino Development Authority Act, but

25 not before July 1, 2015, from the tax revenue from electronic

26 gaming deposited in the State Gaming Fund under this Section,

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1 (i) $9,000,000 shall be transferred annually into the Partners

2 for Conservation Fund for grants to soil and water conservation

3 districts, (ii) $4,000,000 shall be transferred annually into

4 the State Cooperative Extension Service Trust Fund for grants

5 to the State's cooperative extensions, (iii) $2,500,000 shall

6 be transferred annually into the Illinois Historic Sites Fund

7 for costs associated with the State's historic sites, and (iv)

8 $6,000,000 shall be transferred annually into the Future of

9 Agriculture Fund. Transfers made pursuant to this subsection

10 (b-12) shall supplement, and not supplant, other State funding

11 for these purposes.

12 (b-13) Beginning in the fiscal year following the opening

13 of the casino at which gambling operations are conducted

14 pursuant to the Chicago Casino Development Authority Act, but

15 not before July 1, 2015, from the tax revenue deposited in the

16 State Gaming Fund under this Section, $75,000 shall be paid

17 annually, subject to appropriation, to a county forest preserve

18 district for the maintenance of a botanic garden that was

19 created by Section 43 of the Cook County Forest Preserve

20 District Act.

21 (b-14) Beginning in the fiscal year following the opening

22 of the casino at which gambling operations are conducted

23 pursuant to the Chicago Casino Development Authority Act, but

24 not before July 1, 2015, from the tax revenue deposited in the

25 State Gaming Fund under this Section, $175,000 shall be

26 transferred annually into the Illinois Racing Quarter Horse

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1 Breeders Fund.

2 (b-15) From January 1, 2015 until December 31, 2017, if the

3 total amount paid to the Education Assistance Fund annually

4 pursuant to this Act will result in the Education Assistance

5 Fund receiving less revenue from the State Gaming Fund than it

6 received in calendar year 2011, an amount equal to that

7 shortfall shall be transferred from the Capital Projects Fund

8 to the Education Assistance Fund, except that no such transfer

9 shall exceed the amount deposited into the Capital Projects

10 Fund pursuant to subsection (c-4) of this Section.

11 (b-16) Beginning in the fiscal year following the opening

12 of the casino at which gambling operations are conducted

13 pursuant to the Chicago Casino Development Authority Act, but

14 not before July 1, 2015, from the tax revenue deposited in the

15 State Gaming Fund under this Section, an amount equal to 3% of

16 the wagering taxes paid by the riverboats and casino created

17 pursuant to subsection (e-5) of Section 7 of this Act shall be

18 transferred into the African American Community Economic

19 Development Fund annually.

20 (c) Appropriations, as approved by the General Assembly,

21 may be made from the State Gaming Fund to the Board (i) for the

22 administration and enforcement of this Act, the Chicago Casino

23 Development Authority Act, and the Video Gaming Act, (ii) for

24 distribution to the Department of State Police and to the

25 Department of Revenue for the enforcement of this Act, the

26 Chicago Casino Development Authority Act, and the Video Gaming

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1 Act, and (iii) to the Department of Human Services for the

2 administration of programs to treat problem gambling.The

3 Board's annual appropriations request must separately state

4 its funding needs for the regulation of electronic gaming,

5 riverboat gaming, casino gaming within the City of Chicago, and

6 video gaming. From the tax revenue deposited in the Gaming

7 Facilities Fee Revenue Fund, the first $50,000,000 shall be

8 paid to the Board, subject to appropriation, for the

9 administration and enforcement of the provisions of this

10 amendatory Act of the 98th General Assembly.

11 (c-3) Appropriations, as approved by the General Assembly,

12 may be made from the tax revenue deposited into the State

13 Gaming Fund from electronic gaming pursuant to this Section for

14 the administration and enforcement of this Act.

15 (c-4) After payments required under subsection (b-5), (c),

16 and (c-3) have been made from the tax revenue from electronic

17 gaming deposited into the State Gaming Fund under this Section,

18 all remaining amounts from electronic gaming shall be deposited

19 into the Education Assistance Fund.

20 (c-5) Before May 26, 2006 (the effective date of Public Act

21 94-804) and beginning on the effective date of this amendatory

22 Act of the 95th General Assembly, unless any organization

23 licensee under the Illinois Horse Racing Act of 1975 begins to

24 operate a slot machine or video game of chance under the

25 Illinois Horse Racing Act of 1975 or this Act, after the

26 payments required under subsections (b) and (c) have been made,

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1 an amount equal to 15% of the adjusted gross receipts of (1) an

2 owners licensee that relocates pursuant to Section 11.2, (2) an

3 owners licensee conducting riverboat gambling operations

4 pursuant to an owners license that is initially issued after

5 June 25, 1999, or (3) the first riverboat gambling operations

6 conducted by a licensed manager on behalf of the State under

7 Section 7.3, whichever comes first, shall be paid from the

8 State Gaming Fund into the Horse Racing Equity Fund.

9 (c-10) Each year the General Assembly shall appropriate

10 from the General Revenue Fund to the Education Assistance Fund

11 an amount equal to the amount paid into the Horse Racing Equity

12 Fund pursuant to subsection (c-5) in the prior calendar year.

13 (c-15) After the payments required under subsections (b),

14 (c), and (c-5) have been made, an amount equal to 2% of the

15 adjusted gross receipts of (1) an owners licensee that

16 relocates pursuant to Section 11.2, (2) an owners licensee

17 conducting riverboat gambling operations pursuant to an owners

18 license that is initially issued after June 25, 1999, or (3)

19 the first riverboat gambling operations conducted by a licensed

20 manager on behalf of the State under Section 7.3, whichever

21 comes first, shall be paid, subject to appropriation from the

22 General Assembly, from the State Gaming Fund to each home rule

23 county with a population of over 3,000,000 inhabitants for the

24 purpose of enhancing the county's criminal justice system.

25 (c-16) After the payments required under subsections (b),

26 (c), (c-5), and (c-15) have been made, an amount equal to 2% of

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1 the adjusted gross receipts of the owners licensee conducting

2 riverboat gambling operations pursuant to the owners license

3 authorized under paragraph (5) of subsection (e-5) of Section 7

4 of this Act shall be paid, subject to appropriation from the

5 General Assembly, from the State Gaming Fund to each home rule

6 county with a population of over 3,000,000 inhabitants for the

7 purpose of enhancing the county's criminal justice system.

8 (c-17) After the payments required under subsections (b),

9 (c), (c-5), (c-15), and (c-16) have been made, an amount equal

10 to 0.5% of the adjusted gross receipts of the owners licensee

11 conducting riverboat gambling operations pursuant to the

12 owners license authorized under paragraph (1) of subsection

13 (e-5) of Section 7 of this Act shall be paid, subject to

14 appropriation from the General Assembly, from the State Gaming

15 Fund to each home rule county with a population of over

16 3,000,000 inhabitants for the purpose of enhancing the county's

17 criminal justice system.

18 (c-20) Each year the General Assembly shall appropriate

19 from the General Revenue Fund to the Education Assistance Fund

20 an amount equal to the amount paid to each home rule county

21 with a population of over 3,000,000 inhabitants pursuant to

22 subsection (c-15) in the prior calendar year.

23 (c-25) After the payments required under subsections (b),

24 (c), (c-5), ~~and~~(c-15), (c-16), and (c-17) have been made, an

25 amount equal to 2% of the adjusted gross receipts of (1) an

26 owners licensee that relocates pursuant to Section 11.2, (2) an

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1 owners licensee conducting riverboat gambling operations

2 pursuant to an owners license that is initially issued after

3 June 25, 1999, or (3) the first riverboat gambling operations

4 conducted by a licensed manager on behalf of the State under

5 Section 7.3, whichever comes first, shall be paid from the

6 State Gaming Fund to Chicago State University.

7 (d) From time to time, the Board shall transfer the

8 remainder of the funds generated by this Act into the Education

9 Assistance Fund, created by Public Act 86-0018, of the State of

10 Illinois.

11 (e) Nothing in this Act shall prohibit the unit of local

12 government designated as the home dock of the riverboat from

13 entering into agreements with other units of local government

14 in this State or in other states to share its portion of the

15 tax revenue.

16 (f) To the extent practicable, the Board shall administer

17 and collect the wagering taxes imposed by this Section in a

18 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

19 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the

20 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

21 Penalty and Interest Act.

22 (Source: P.A. 95-331, eff. 8-21-07; 95-1008, eff. 12-15-08;

23 96-37, eff. 7-13-09; 96-1392, eff. 1-1-11.)

24 (230 ILCS 10/13.2 new)

25 Sec. 13.2. Gaming revenues; East St. Louis.

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1 (a) For purposes of this Section only:

2 "City" means the City of East St. Louis.

3 "Owners licensee" means an owners licensee that is located

4 within the City of East St. Louis.

5 "Electronic gaming licensee" means an electronic gaming

6 licensee located in the City of Collinsville.

7 (b) The General Assembly finds that the City currently

8 receives approximately 40% of its annual budget from gaming

9 revenues generated by the riverboat located within the City.

10 According to 2011 Census data, the median household income in

11 East St. Louis is $19,934, with approximately 42% of residents

12 living below the poverty level. The riverboat located within

13 the City is the first employee-owned casino in Illinois,

14 employing approximately 700 employee/owners, 92% of whom are

15 Illinois residents residing primarily within St. Clair County

16 in and around the City. In addition, 71% of the workforce at

17 the East St. Louis riverboat is comprised of minority and

18 female workers.

19 Because the gaming market in the greater metropolitan St.

20 Louis area is already highly saturated with 6 riverboat casinos

21 and one race track within a 45-mile radius, there is a finite

22 number of gaming dollars being spent in the area. The addition

23 of electronic gaming machines at a race track in the City of

24 Collinsville will likely result in a significant portion of the

25 revenue of those electronic gaming machines being derived from

26 cannibalization of gaming activities in the City, resulting in

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1 job loss and further erosion of the gaming revenues available

2 for the City. Without gaming revenues, the City would be forced

3 to make cuts to vital services, such as fire and police

4 protection, community and economic development, and

5 maintenance of public infrastructure, for an already

6 impoverished community. Job loss in the community would only

7 further exacerbate these problems. Therefore, recapture of

8 those gaming revenues is necessary to ensure the continued job

9 growth and prosperity of the City.

10 (c) Beginning in the year after an electronic gaming

11 licensee begins conducting electronic gaming and continuing

12 for a period of 10 years thereafter, in the event that the

13 after-tax adjusted gross receipts of an owners licensee in any

14 calendar year is less than the after-tax adjusted gross

15 receipts of an owners licensee for calendar year 2012, then the

16 owners licensee shall be permitted to receive from an

17 electronic gaming licensee a payment in an amount equal to the

18 shortfall between the after-tax adjusted gross receipts of the

19 owners licensee for calendar year 2012 and the after-tax

20 adjusted gross receipts of the owners licensee for any calendar

21 year that is less than those receipts in calendar year 2012.

22 The owners licensee shall not be entitled to any payment under

23 this subsection (c) until the Board certifies in writing to the

24 owners licensee the amount to which the owners licensee is

25 entitled and a schedule for payment of the amount to the owners

26 licensee. In no case shall the Board certify an amount to be

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1 paid to an owners licensee that would diminish the amounts

2 required to be paid by that electronic gaming licensee to purse

3 accounts pursuant to paragraph (1) of subsection (b) of Section

4 56 of the Illinois Horse Racing Act of 1975. The Board's

5 certification shall be provided no later than January 31 of the

6 succeeding year to the owners licensee and the electronic

7 gaming licensee. Within 15 calendar days after receipt of the

8 Board's certification, the electronic gaming licensee shall

9 pay an amount equal to the amount certified by the Board to the

10 owners licensee.

11 (d) Beginning in the year after an electronic gaming

12 licensee begins conducting electronic gaming and continuing

13 for a period of 10 years thereafter, in the event that the

14 revenues that the City receives from gaming, including any

15 amounts it receives pursuant to Sections 12 and 13 of the

16 Illinois Gambling Act, in any calendar year are less than the

17 revenues from gaming that the City received in 2012, the City

18 shall be permitted to receive from an electronic gaming

19 licensee a payment in an amount equal to the shortfall between

20 the amount the City received in 2012 and the amount the City

21 received in any calendar year that is less than what the City

22 received in 2012. The City shall not be entitled to any payment

23 under this subsection (d) until the Board certifies in writing

24 to the City and the electronic gaming licensee the amount to

25 which the City is entitled to receive and a schedule for

26 payment of the amount to the City. In no case shall the Board

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1 certify an amount to be paid to the City that would diminish

2 the amount required to be paid by that electronic gaming

3 licensee to purse accounts pursuant to paragraph (1) of

4 subsection (b) of Section 56 of the Illinois Horse Racing Act

5 of 1975. The Board's certification shall be provided no later

6 than January 31 of the succeeding year and provided to the City

7 and the electronic gaming licensee. Within 15 calendar days

8 after receipt of the Board's certification, the electronic

9 gaming licensee shall pay an amount equal to the amount

10 certified by the Board to the City.

11 (e) Subsections (c) and (d) of this Section shall not apply

12 if the owners licensee and electronic gaming licensee have

13 entered into an agreement for the joint operation of an

14 electronic gaming facility, subject to the approval of the

15 Board. Any such joint agreement must include a provision

16 ensuring that the City shall receive its fair share of revenue

17 from the joint operation of an electronic gaming facility.

18 (230 ILCS 10/14) (from Ch. 120, par. 2414)

19 Sec. 14. Licensees - Records - Reports - Supervision.

20 (a) Licensed owners and electronic gaming licensees ~~A~~

21 ~~licensed owner~~ shall keep ~~his~~ books and records so as to

22 clearly show the following:

23 (1) The amount received daily from admission fees.

24 (2) The total amount of gross receipts.

25 (3) The total amount of the adjusted gross receipts.

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1 (b) Licensed owners and electronic gaming licensees ~~The~~

2 ~~licensed owner~~ shall furnish to the Board reports and

3 information as the Board may require with respect to its

4 activities on forms designed and supplied for such purpose by

5 the Board.

6 (c) The books and records kept by a licensed owner as

7 provided by this Section are public records and the

8 examination, publication, and dissemination of the books and

9 records are governed by the provisions of The Freedom of

10 Information Act.

11 (Source: P.A. 86-1029.)

12 (230 ILCS 10/15) (from Ch. 120, par. 2415)

13 Sec. 15. Audit of Licensee Operations. Annually, the

14 licensed owner, ~~or~~ manager, or electronic gaming licenseeshall

15 transmit to the Board an audit of the financial transactions

16 and condition of the licensee's or manager's total operations.

17 Additionally, within 90 days after the end of each quarter of

18 each fiscal year, the licensed owner, ~~or~~ manager, or electronic

19 gaming licensee shall transmit to the Board a compliance report

20 on engagement procedures determined by the Board. All audits

21 and compliance engagements shall be conducted by certified

22 public accountants selected by the Board. Each certified public

23 accountant must be registered in the State of Illinois under

24 the Illinois Public Accounting Act. The compensation for each

25 certified public accountant shall be paid directly by the

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1 licensed owner, ~~or~~ manager, or electronic gaming licensee to

2 the certified public accountant.

3 (Source: P.A. 96-1392, eff. 1-1-11.)

4 (230 ILCS 10/16) (from Ch. 120, par. 2416)

5 Sec. 16. Annual Report of Board. The Board shall make an

6 annual report to the Governor, for the period ending December

7 31 of each year. Included in the report shall be an account of

8 the Board actions, its financial position and results of

9 operation under this Act and the Chicago Casino Development

10 Authority Act, the practical results attained under this Act

11 and the Chicago Casino Development Authority Act and any

12 recommendations for legislation which the Board deems

13 advisable.

14 (Source: P.A. 86-1029.)

15 (230 ILCS 10/17) (from Ch. 120, par. 2417)

16 Sec. 17. Administrative Procedures. The Illinois

17 Administrative Procedure Act shall apply to all administrative

18 rules and procedures of the Board under this Act, the Chicago

19 Casino Development Authority Act, and ~~or~~ the Video Gaming Act,

20 except that: (1) subsection (b) of Section 5-10 of the Illinois

21 Administrative Procedure Act does not apply to final orders,

22 decisions and opinions of the Board; (2) subsection (a) of

23 Section 5-10 of the Illinois Administrative Procedure Act does

24 not apply to forms established by the Board for use under this

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1 Act, the Chicago Casino Development Authority Act, and or the

2 Video Gaming Act; (3) the provisions of Section 10-45 of the

3 Illinois Administrative Procedure Act regarding proposals for

4 decision are excluded under this Act, the Chicago Casino

5 Development Authority Act, and ~~or~~ the Video Gaming Act; and (4)

6 the provisions of subsection (d) of Section 10-65 of the

7 Illinois Administrative Procedure Act do not apply so as to

8 prevent summary suspension of any license pending revocation or

9 other action, which suspension shall remain in effect unless

10 modified by the Board or unless the Board's decision is

11 reversed on the merits upon judicial review.

12 (Source: P.A. 96-34, eff. 7-13-09.)

13 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)

14 Sec. 17.1. Judicial Review.

15 (a) Jurisdiction and venue for the judicial review of a

16 final order of the Board relating to licensed owners,

17 suppliers, electronic gaming licensees, and ~~or~~special event

18 licenses is vested in the Appellate Court of the judicial

19 district in which Sangamon County is located. A petition for

20 judicial review of a final order of the Board must be filed in

21 the Appellate Court, within 35 days from the date that a copy

22 of the decision sought to be reviewed was served upon the party

23 affected by the decision.

24 (b) Judicial review of all other final orders of the Board

25 shall be conducted in accordance with the Administrative Review

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1 Law.

2 (Source: P.A. 88-1.)

3 (230 ILCS 10/18) (from Ch. 120, par. 2418)

4 Sec. 18. Prohibited Activities - Penalty.

5 (a) A person is guilty of a Class A misdemeanor for doing

6 any of the following:

7 (1) Conducting gambling where wagering is used or to be

8 used without a license issued by the Board.

9 (2) Conducting gambling where wagering is permitted

10 other than in the manner specified by Section 11.

11 (b) A person is guilty of a Class B misdemeanor for doing

12 any of the following:

13 (1) permitting a person under 21 years to make a wager;

14 or

15 (2) violating paragraph (12) of subsection (a) of

16 Section 11 of this Act.

17 (c) A person wagering or accepting a wager at any location

18 outside the riverboat, casino, or electronic gaming facility in

19 violation of paragraph ~~is subject to the penalties in~~

20 ~~paragraphs~~(1) or (2) of subsection (a) of Section 28-1 of the

21 Criminal Code of 2012 is subject to the penalties provided in

22 that Section.

23 (d) A person commits a Class 4 felony and, in addition,

24 shall be barred for life fromgambling operations ~~riverboats~~

25 under the jurisdiction of the Board, if the person does any of

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1 the following:

2 (1) Offers, promises, or gives anything of value or

3 benefit to a person who is connected with a riverboator

4 casino owner or electronic gaming licensee,including, but

5 not limited to, an officer or employee of a licensed owner,

6 electronic gaming licensee,or holder of an occupational

7 license pursuant to an agreement or arrangement or with the

8 intent that the promise or thing of value or benefit will

9 influence the actions of the person to whom the offer,

10 promise, or gift was made in order to affect or attempt to

11 affect the outcome of a gambling game, or to influence

12 official action of a member of the Board.

13 (2) Solicits or knowingly accepts or receives a promise

14 of anything of value or benefit while the person is

15 connected with a riverboat, casino, or electronic gaming

16 facility,including, but not limited to, an officer or

17 employee of a licensed owner or electronic gaming licensee,

18 or the holder of an occupational license, pursuant to an

19 understanding or arrangement or with the intent that the

20 promise or thing of value or benefit will influence the

21 actions of the person to affect or attempt to affect the

22 outcome of a gambling game, or to influence official action

23 of a member of the Board.

24 (3) Uses or possesses with the intent to use a device

25 to assist:

26 (i) In projecting the outcome of the game.

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1 (ii) In keeping track of the cards played.

2 (iii) In analyzing the probability of the

3 occurrence of an event relating to the gambling game.

4 (iv) In analyzing the strategy for playing or

5 betting to be used in the game except as permitted by

6 the Board.

7 (4) Cheats at a gambling game.

8 (5) Manufactures, sells, or distributes any cards,

9 chips, dice, game or device which is intended to be used to

10 violate any provision of this Act or the Chicago Casino

11 Development Authority Act.

12 (6) Alters or misrepresents the outcome of a gambling

13 game on which wagers have been made after the outcome is

14 made sure but before it is revealed to the players.

15 (7) Places a bet after acquiring knowledge, not

16 available to all players, of the outcome of the gambling

17 game which is subject of the bet or to aid a person in

18 acquiring the knowledge for the purpose of placing a bet

19 contingent on that outcome.

20 (8) Claims, collects, or takes, or attempts to claim,

21 collect, or take, money or anything of value in or from the

22 gambling games, with intent to defraud, without having made

23 a wager contingent on winning a gambling game, or claims,

24 collects, or takes an amount of money or thing of value of

25 greater value than the amount won.

26 (9) Uses counterfeit chips or tokens in a gambling

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1 game.

2 (10) Possesses any key or device designed for the

3 purpose of opening, entering, or affecting the operation of

4 a gambling game, drop box, or an electronic or mechanical

5 device connected with the gambling game or for removing

6 coins, tokens, chips or other contents of a gambling game.

7 This paragraph (10) does not apply to a gambling licensee

8 or employee of a gambling licensee acting in furtherance of

9 the employee's employment.

10 (e) The possession of more than one of the devices

11 described in subsection (d), paragraphs (3), (5), or (10)

12 permits a rebuttable presumption that the possessor intended to

13 use the devices for cheating.

14 (f) A person under the age of 21 who, except as authorized

15 under paragraph (10) of Section 11, enters upon a riverboat or

16 in a casino or electronic gaming facility commits a petty

17 offense and is subject to a fine of not less than $100 or more

18 than $250 for a first offense and of not less than $200 or more

19 than $500 for a second or subsequent offense.

20 An action to prosecute any crime occurring on a riverboat

21 shall be tried in the county of the dock at which the riverboat

22 is based. An action to prosecute any crime occurring in a

23 casino or electronic gaming facility shall be tried in the

24 county in which the casino or electronic gaming facility is

25 located.

26 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

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1 (230 ILCS 10/18.1)

2 Sec. 18.1. Distribution of certain fines. If a fine is

3 imposed on an owner licensee or an electronic gaming licensee

4 for knowingly sending marketing or promotional materials to any

5 person placed on the self-exclusion list, then the Board shall

6 distribute an amount equal to 15% of the fine imposed to the

7 unit of local government in which the casino, riverboat, or

8 electronic gaming facility is located for the purpose of

9 awarding grants to non-profit entities that assist gambling

10 addicts.

11 (Source: P.A. 96-224, eff. 8-11-09.)

12 (230 ILCS 10/18.2 new)

13 Sec. 18.2. Prohibition on political contributions from

14 certain licensees and applicants.

15 (a) The General Assembly has a compelling interest in

16 protecting the integrity of both the electoral process and the

17 legislative process by preventing corruption and the

18 appearance of corruption which may arise through permitting

19 certain political campaign contributions by certain persons

20 involved in the gaming industry and regulated by the State.

21 Unlike most other regulated industries, gaming is especially

22 susceptible to corruption and potential criminal influence.

23 In Illinois, only licensed gaming activities are legal and

24 all other gaming activities are strictly prohibited. Given

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1 these circumstances, it is imperative to eliminate any

2 potential corrupt influence in the gaming industry and the

3 electoral process. Banning political campaign contributions by

4 certain persons subject to this Section to State officeholders

5 and candidates for such offices and to county and municipal

6 officeholders and candidates for such offices in counties and

7 municipalities that receive financial benefits from gaming

8 activities is necessary to prevent corruption and the

9 appearance of corruption that may arise when political campaign

10 contributions and gaming that is regulated by the State and

11 that confers benefits on counties and municipalities are

12 intermingled.

13 The General Assembly has prohibited political campaign

14 contributions to certain State and local officeholders and

15 candidates for such offices by certain persons with State of

16 Illinois and Metropolitan Pier and Exposition Authority

17 contracts and pending bids or proposals for contracts of over

18 $50,000 and certain individuals and entities affiliated with

19 such persons. Certain gaming licensees will receive receipts

20 far in excess of the base level of contract amounts subject to

21 such other campaign contribution prohibitions.

22 (b) As used in this Section:

23 "Affiliated entity" means (i) any corporate parent and each

24 operating subsidiary of the business entity applying for or

25 holding a license, (ii) each operating subsidiary of the

26 corporate parent of the business entity applying for or holding

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1 a license, (iii) any organization recognized by the United

2 States Internal Revenue Service as a tax-exempt organization

3 described in Section 501(c) of the Internal Revenue Code of

4 1986 (or any successor provision of federal tax law)

5 established by one or more business entities seeking or holding

6 a license, any affiliated entity of such business entity, or

7 any affiliated person of such business entity, and (iv) any

8 political committee for which the business entity applying for

9 or holding a license, or any 501(c) organization described in

10 item (iii) related to that business entity, is the sponsoring

11 entity, as defined in Section 9-3 of the Election Code. For

12 purposes of item (iv), the funding of all business entities

13 applying for or holding a license shall be aggregated in

14 determining whether such political committee is an affiliated

15 entity.

16 "Affiliated person" means (i) any person with any ownership

17 interest or distributive share in excess of 7.5% of any

18 business entity applying for or holding a license, (ii)

19 executive employees of any such business entity, (iii) any

20 person designated as a key person under this Act, and (iv) the

21 spouse of such persons.

22 "Contribution" means a contribution as defined in Section

23 9-1.4 of the Election Code.

24 "Declared candidate" means a person who has filed a

25 statement of candidacy and petition for nomination or election

26 in the principal office of the State Board of Elections, or in

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1 the office of the appropriate election authority for any county

2 or municipality in which a casino or electronic gaming device

3 is located or proposed or which receives any gaming revenue.

4 "Executive employee" means any person who is (i) an officer

5 or director or who fulfills duties equivalent to those of an

6 officer or director of a business entity applying for or

7 holding a license and (ii) any employee of such business entity

8 who is required to register under the Lobbyist Registration

9 Act.

10 "License" means any owner, electronic gaming, or manager

11 license issued pursuant to this Act.

12 "Officeholder" means the Governor, Lieutenant Governor,

13 Attorney General, Secretary of State, Comptroller, Treasurer,

14 member of the General Assembly, or any officeholder in any

15 county or municipality in which a riverboat, casino, or

16 electronic gaming device is located or proposed or which

17 receives any gaming revenue.

18 "Business entity" means any entity doing business for

19 profit, whether organized as a corporation, partnership, sole

20 proprietorship, limited liability company, or partnership or

21 otherwise.

22 (c) Any person or business entity applying for or holding a

23 license, any affiliated entities or persons of such business

24 entity, and any entities or persons soliciting a contribution

25 or causing a contribution to be made on behalf of such person

26 or business entity, are prohibited from making any contribution

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1 to any officeholder or declared candidate or any political

2 committee affiliated with any officeholder or declared

3 candidate, as defined in Section 9-1.8 of the Election Code.

4 This prohibition shall commence upon filing of an application

5 for a license and shall continue for a period of 2 years after

6 termination, suspension, or revocation of the license.

7 The Board shall have authority to suspend, revoke, or

8 restrict the license and to impose civil penalties of up to

9 $100,000 for each violation of this subsection (c). A notice of

10 each such violation and the penalty imposed shall be published

11 on the Board's website and in the Illinois Register. Payments

12 received by the State pursuant to this subsection (c) shall be

13 deposited into the General Revenue Fund.

14 Any officeholder or declared candidate or any political

15 committee affiliated with any officeholder or declared

16 candidate that has received a contribution in violation of this

17 subsection (c) shall pay an amount equal to the value of the

18 contribution to the State no more than 30 days after notice of

19 the violation concerning the contribution appears in the

20 Illinois Register. Payments received by the State pursuant to

21 this subsection (c) shall be deposited into the General Revenue

22 Fund.

23 (d) The Board shall post on its website a list of all

24 persons, business entities, and affiliated entities prohibited

25 from making contributions to any officeholder or declared

26 candidate political committee pursuant to subsection (c),

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1 which list shall be updated and published on, at a minimum, a

2 semiannual basis.

3 Any person, business entity, or affiliated entity

4 prohibited from making contributions to any officeholder or

5 declared candidate political committee pursuant to subsection

6 (c) shall notify the Board within 7 days after discovering any

7 necessary change or addition to the information relating to

8 that person, business entity, or affiliated entity contained in

9 the list.

10 An individual who acts in good faith and in reliance on any

11 information contained in the list shall not be subject to any

12 penalties or liability imposed for a violation of this Section.

13 (e) If any provision of this Section is held invalid or its

14 application to any person or circumstance is held invalid, the

15 invalidity of that provision or application does not affect the

16 other provisions or applications of this Section that can be

17 given effect without the invalid application or provision.

18 (230 ILCS 10/19) (from Ch. 120, par. 2419)

19 Sec. 19. Forfeiture of property.

20 (a) Except as provided in subsection (b), any riverboat,

21 casino, or electronic gaming facilityused for the conduct of

22 gambling games in violation of this Act shall be considered a

23 gambling place in violation of Section 28-3 of the Criminal

24 Code of 2012. Every gambling device found on a riverboat, in a

25 casino, or at an electronic gaming facility operating gambling

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1 games in violation of this Actand every slot machine and video

2 game of chance found at an electronic gaming facility operating

3 gambling games in violation of this Act or the Chicago Casino

4 Development Authority Act shall be subject to seizure,

5 confiscation and destruction as provided in Section 28-5 of the

6 Criminal Code of 2012.

7 (b) It is not a violation of this Act for a riverboat or

8 other watercraft which is licensed for gaming by a contiguous

9 state to dock on the shores of this State if the municipality

10 having jurisdiction of the shores, or the county in the case of

11 unincorporated areas, has granted permission for docking and no

12 gaming is conducted on the riverboat or other watercraft while

13 it is docked on the shores of this State. No gambling device

14 shall be subject to seizure, confiscation or destruction if the

15 gambling device is located on a riverboat or other watercraft

16 which is licensed for gaming by a contiguous state and which is

17 docked on the shores of this State if the municipality having

18 jurisdiction of the shores, or the county in the case of

19 unincorporated areas, has granted permission for docking and no

20 gaming is conducted on the riverboat or other watercraft while

21 it is docked on the shores of this State.

22 (Source: P.A. 97-1150, eff. 1-25-13.)

23 (230 ILCS 10/20) (from Ch. 120, par. 2420)

24 Sec. 20. Prohibited activities - civil penalties. Any

25 person who conducts a gambling operation without first

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1 obtaining a license to do so, or who continues to conduct such

2 games after revocation of his license, or any licensee who

3 conducts or allows to be conducted any unauthorized gambling

4 games on a riverboat, in a casino, or at an electronic gaming

5 facilitywhere it is authorized to conduct its~~riverboat~~

6 gambling operation, in addition to other penalties provided,

7 shall be subject to a civil penalty equal to the amount of

8 gross receipts derived from wagering on the gambling games,

9 whether unauthorized or authorized, conducted on that day as

10 well as confiscation and forfeiture of all gambling game

11 equipment used in the conduct of unauthorized gambling games.

12 (Source: P.A. 86-1029.)

13 (230 ILCS 10/21) (from Ch. 120, par. 2421)

14 Sec. 21. Limitation on taxation of licensees. Licensees

15 shall not be subjected to any excise tax, license tax, permit

16 tax, privilege tax, occupation tax or excursion tax which is

17 imposed exclusively upon the licensee by the State or any

18 political subdivision thereof, except as provided in this Act

19 or the Chicago Casino Development Authority Act.

20 (Source: P.A. 86-1029.)

21 (230 ILCS 10/23) (from Ch. 120, par. 2423)

22 Sec. 23. The State Gaming Fund. On or after the effective

23 date of this Act, except as provided for payments into the

24 Horse Racing Equity Trust Fund under subsection (a) of Section

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1 7, all of the fees and taxes collected pursuant to this Actor

2 the Chicago Casino Development Authority Act shall be deposited

3 into the State Gaming Fund, a special fund in the State

4 Treasury, which is hereby created. The adjusted gross receipts

5 of any riverboat gambling operations conducted by a licensed

6 manager on behalf of the State remaining after the payment of

7 the fees and expenses of the licensed manager shall be

8 deposited into the State Gaming Fund. Fines and penalties

9 collected pursuant to this Act or the Chicago Casino

10 Development Authority Actshall be deposited into the Education

11 Assistance Fund, created by Public Act 86-0018, of the State of

12 Illinois.

13 (Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)

14 (230 ILCS 10/24)

15 Sec. 24. Applicability of this ~~Illinois Riverboat Gambling~~

16 Act. The provisions of the this ~~Illinois Riverboat Gambling~~

17 Act, and all rules promulgated thereunder, shall apply to the

18 Chicago Casino Development Authority Act and the Video Gaming

19 Act, except where there is a conflict between the ~~2~~ Acts. In

20 the event of a conflict between this Act and the Chicago Casino

21 Development Authority Act, the terms of the Chicago Casino

22 Development Authority Act shall prevail. In the event of a

23 conflict between this Act and the Video Gaming Act, the terms

24 of this Act shall prevail.

25 (Source: P.A. 96-37, eff. 7-13-09.)

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1 Section 90-42. The Video Gaming Act is amended by changing

2 Sections 5, 25, 45, 79, and 80 and by adding Section 81 as

3 follows:

4 (230 ILCS 40/5)

5 Sec. 5. Definitions. As used in this Act:

6 "Board" means the Illinois Gaming Board.

7 "Credit" means one, 5, 10, or 25 cents either won or

8 purchased by a player.

9 "Distributor" means an individual, partnership,

10 corporation, or limited liability company licensed under this

11 Act to buy, sell, lease, or distribute video gaming terminals

12 or major components or parts of video gaming terminals to or

13 from terminal operators.

14 "Terminal operator" means an individual, partnership,

15 corporation, or limited liability company that is licensed

16 under this Act and that owns, services, and maintains video

17 gaming terminals for placement in licensed establishments,

18 licensed truck stop establishments, licensed fraternal

19 establishments, or licensed veterans establishments.

20 "Licensed technician" means an individual who is licensed

21 under this Act to repair, service, and maintain video gaming

22 terminals.

23 "Licensed terminal handler" means a person, including but

24 not limited to an employee or independent contractor working

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1 for a manufacturer, distributor, supplier, technician, or

2 terminal operator, who is licensed under this Act to possess or

3 control a video gaming terminal or to have access to the inner

4 workings of a video gaming terminal. A licensed terminal

5 handler does not include an individual, partnership,

6 corporation, or limited liability company defined as a

7 manufacturer, distributor, supplier, technician, or terminal

8 operator under this Act.

9 "Manufacturer" means an individual, partnership,

10 corporation, or limited liability company that is licensed

11 under this Act and that manufactures or assembles video gaming

12 terminals.

13 "Supplier" means an individual, partnership, corporation,

14 or limited liability company that is licensed under this Act to

15 supply major components or parts to video gaming terminals to

16 licensed terminal operators.

17 "Net terminal income" means money put into a video gaming

18 terminal minus credits paid out to players.

19 "Video gaming terminal" means any electronic video game

20 machine that, upon insertion of cash, is available to play or

21 simulate the play of a video game, including but not limited to

22 video poker, line up, and blackjack, as authorized by the Board

23 utilizing a video display and microprocessors in which the

24 player may receive free games or credits that can be redeemed

25 for cash. The term does not include a machine that directly

26 dispenses coins, cash, or tokens or is for amusement purposes

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1 only.

2 "Licensed establishment" means any licensed retail

3 establishment where alcoholic liquor is drawn, poured, mixed,

4 or otherwise served for consumption on the premises and

5 includes any such establishment that has a contractual

6 relationship with an inter-track wagering location licensee

7 licensed under the Illinois Horse Racing Act of 1975, provided

8 any contractual relationship shall not include any transfer or

9 offer of revenue from the operation of video gaming under this

10 Act to any licensee licensed under the Illinois Horse Racing

11 Act of 1975. Provided, however, that the licensed establishment

12 that has such a contractual relationship with an inter-track

13 wagering location licensee may not, itself, be (i) an

14 inter-track wagering location licensee, (ii) the corporate

15 parent or subsidiary of any licensee licensed under the

16 Illinois Horse Racing Act of 1975, or (iii) the corporate

17 subsidiary of a corporation that is also the corporate parent

18 or subsidiary of any licensee licensed under the Illinois Horse

19 Racing Act of 1975. "Licensed establishment" does not include a

20 facility operated by an organization licensee, an inter-track

21 wagering licensee, or an inter-track wagering location

22 licensee licensed under the Illinois Horse Racing Act of 1975

23 or a riverboat licensed under the Illinois ~~Riverboat~~ Gambling

24 Act, except as provided in this paragraph.

25 "Licensed fraternal establishment" means the location

26 where a qualified fraternal organization that derives its

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1 charter from a national fraternal organization regularly

2 meets.

3 "Licensed veterans establishment" means the location where

4 a qualified veterans organization that derives its charter from

5 a national veterans organization regularly meets.

6 "Licensed truck stop establishment" means a facility (i)

7 that is at least a 3-acre facility with a convenience store,

8 (ii) with separate diesel islands for fueling commercial motor

9 vehicles, (iii) that sells at retail more than 10,000 gallons

10 of diesel or biodiesel fuel per month, and (iv) with parking

11 spaces for commercial motor vehicles. "Commercial motor

12 vehicles" has the same meaning as defined in Section 18b-101 of

13 the Illinois Vehicle Code. The requirement of item (iii) of

14 this paragraph may be met by showing that estimated future

15 sales or past sales average at least 10,000 gallons per month.

16 (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;

17 96-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff.

18 8-12-11.)

19 (230 ILCS 40/25)

20 Sec. 25. Restriction of licensees.

21 (a) Manufacturer. A person may not be licensed as a

22 manufacturer of a video gaming terminal in Illinois unless the

23 person has a valid manufacturer's license issued under this

24 Act. A manufacturer may only sell video gaming terminals for

25 use in Illinois to persons having a valid distributor's

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1 license.

2 (b) Distributor. A person may not sell, distribute, or

3 lease or market a video gaming terminal in Illinois unless the

4 person has a valid distributor's license issued under this Act.

5 A distributor may only sell video gaming terminals for use in

6 Illinois to persons having a valid distributor's or terminal

7 operator's license.

8 (c) Terminal operator. A person may not own, maintain, or

9 place a video gaming terminal unless he has a valid terminal

10 operator's license issued under this Act. A terminal operator

11 may only place video gaming terminals for use in Illinois in

12 licensed establishments, licensed truck stop establishments,

13 licensed fraternal establishments, and licensed veterans

14 establishments. No terminal operator may give anything of

15 value, including but not limited to a loan or financing

16 arrangement, to a licensed establishment, licensed truck stop

17 establishment, licensed fraternal establishment, or licensed

18 veterans establishment as any incentive or inducement to locate

19 video terminals in that establishment. Of the after-tax profits

20 from a video gaming terminal, 50% shall be paid to the terminal

21 operator and 50% shall be paid to the licensed establishment,

22 licensed truck stop establishment, licensed fraternal

23 establishment, or licensed veterans establishment,

24 notwithstanding any agreement to the contrary. A video terminal

25 operator that violates one or more requirements of this

26 subsection is guilty of a Class 4 felony and is subject to

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1 termination of his or her license by the Board.

2 (d) Licensed technician. A person may not service,

3 maintain, or repair a video gaming terminal in this State

4 unless he or she (1) has a valid technician's license issued

5 under this Act, (2) is a terminal operator, or (3) is employed

6 by a terminal operator, distributor, or manufacturer.

7 (d-5) Licensed terminal handler. No person, including, but

8 not limited to, an employee or independent contractor working

9 for a manufacturer, distributor, supplier, technician, or

10 terminal operator licensed pursuant to this Act, shall have

11 possession or control of a video gaming terminal, or access to

12 the inner workings of a video gaming terminal, unless that

13 person possesses a valid terminal handler's license issued

14 under this Act.

15 (e) Licensed establishment. No video gaming terminal may be

16 placed in any licensed establishment, licensed veterans

17 establishment, licensed truck stop establishment, or licensed

18 fraternal establishment unless the owner or agent of the owner

19 of the licensed establishment, licensed veterans

20 establishment, licensed truck stop establishment, or licensed

21 fraternal establishment has entered into a written use

22 agreement with the terminal operator for placement of the

23 terminals. A copy of the use agreement shall be on file in the

24 terminal operator's place of business and available for

25 inspection by individuals authorized by the Board. A licensed

26 establishment, licensed truck stop establishment, licensed

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1 veterans establishment, or licensed fraternal establishment

2 may operate up to 5 video gaming terminals on its premises at

3 any time.

4 (f) (Blank).

5 (g) Financial interest restrictions. As used in this Act,

6 "substantial interest" in a partnership, a corporation, an

7 organization, an association, a business, or a limited

8 liability company means:

9 (A) When, with respect to a sole proprietorship, an

10 individual or his or her spouse owns, operates, manages, or

11 conducts, directly or indirectly, the organization,

12 association, or business, or any part thereof; or

13 (B) When, with respect to a partnership, the individual

14 or his or her spouse shares in any of the profits, or

15 potential profits, of the partnership activities; or

16 (C) When, with respect to a corporation, an individual

17 or his or her spouse is an officer or director, or the

18 individual or his or her spouse is a holder, directly or

19 beneficially, of 5% or more of any class of stock of the

20 corporation; or

21 (D) When, with respect to an organization not covered

22 in (A), (B) or (C) above, an individual or his or her

23 spouse is an officer or manages the business affairs, or

24 the individual or his or her spouse is the owner of or

25 otherwise controls 10% or more of the assets of the

26 organization; or

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1 (E) When an individual or his or her spouse furnishes

2 5% or more of the capital, whether in cash, goods, or

3 services, for the operation of any business, association,

4 or organization during any calendar year; or

5 (F) When, with respect to a limited liability company,

6 an individual or his or her spouse is a member, or the

7 individual or his or her spouse is a holder, directly or

8 beneficially, of 5% or more of the membership interest of

9 the limited liability company.

10 For purposes of this subsection (g), "individual" includes

11 all individuals or their spouses whose combined interest would

12 qualify as a substantial interest under this subsection (g) and

13 whose activities with respect to an organization, association,

14 or business are so closely aligned or coordinated as to

15 constitute the activities of a single entity.

16 (h) Location restriction. A licensed establishment,

17 licensed truck stop establishment, licensed fraternal

18 establishment, or licensed veterans establishment that is (i)

19 located within 1,000 feet of a facility operated by an

20 organization licensee or an inter-track wagering licensee

21 licensed under the Illinois Horse Racing Act of 1975 or the

22 home dock of a riverboat licensed under the Illinois ~~Riverboat~~

23 Gambling Act or (ii) located within 100 feet of a school or a

24 place of worship under the Religious Corporation Act, is

25 ineligible to operate a video gaming terminal. The location

26 restrictions in this subsection (h) do not apply if a facility

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1 operated by an organization licensee, an inter-track wagering

2 licensee, or an inter-track wagering location licensee, a

3 school, or a place of worship moves to or is established within

4 the restricted area after a licensed establishment, licensed

5 truck stop establishment, licensed fraternal establishment, or

6 licensed veterans establishment becomes licensed under this

7 Act. For the purpose of this subsection, "school" means an

8 elementary or secondary public school, or an elementary or

9 secondary private school registered with or recognized by the

10 State Board of Education.

11 Notwithstanding the provisions of this subsection (h), the

12 Board may waive the requirement that a licensed establishment,

13 licensed truck stop establishment, licensed fraternal

14 establishment, or licensed veterans establishment not be

15 located within 1,000 feet from a facility operated by an

16 organization licensee, an inter-track wagering licensee, or an

17 inter-track wagering location licensee licensed under the

18 Illinois Horse Racing Act of 1975 or the home dock of a

19 riverboat licensed under the Illinois ~~Riverboat~~ Gambling Act.

20 The Board shall not grant such waiver if there is any common

21 ownership or control, shared business activity, or contractual

22 arrangement of any type between the establishment and the

23 organization licensee, inter-track wagering licensee,

24 inter-track wagering location licensee, or owners licensee of a

25 riverboat. The Board shall adopt rules to implement the

26 provisions of this paragraph.

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1 (i) Undue economic concentration. In addition to

2 considering all other requirements under this Act, in deciding

3 whether to approve the operation of video gaming terminals by a

4 terminal operator in a location, the Board shall consider the

5 impact of any economic concentration of such operation of video

6 gaming terminals. The Board shall not allow a terminal operator

7 to operate video gaming terminals if the Board determines such

8 operation will result in undue economic concentration. For

9 purposes of this Section, "undue economic concentration" means

10 that a terminal operator would have such actual or potential

11 influence over video gaming terminals in Illinois as to:

12 (1) substantially impede or suppress competition among

13 terminal operators;

14 (2) adversely impact the economic stability of the

15 video gaming industry in Illinois; or

16 (3) negatively impact the purposes of the Video Gaming

17 Act.

18 The Board shall adopt rules concerning undue economic

19 concentration with respect to the operation of video gaming

20 terminals in Illinois. The rules shall include, but not be

21 limited to, (i) limitations on the number of video gaming

22 terminals operated by any terminal operator within a defined

23 geographic radius and (ii) guidelines on the discontinuation of

24 operation of any such video gaming terminals the Board

25 determines will cause undue economic concentration.

26 (j) The provisions of the Illinois Antitrust Act are fully

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1 and equally applicable to the activities of any licensee under

2 this Act.

3 (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,

4 eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;

5 96-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)

6 (230 ILCS 40/45)

7 Sec. 45. Issuance of license.

8 (a) The burden is upon each applicant to demonstrate his

9 suitability for licensure. Each video gaming terminal

10 manufacturer, distributor, supplier, operator, handler,

11 licensed establishment, licensed truck stop establishment,

12 licensed fraternal establishment, and licensed veterans

13 establishment shall be licensed by the Board. The Board may

14 issue or deny a license under this Act to any person pursuant

15 to the same criteria set forth in Section 9 of the Illinois

16 ~~Riverboat~~ Gambling Act.

17 (a-5) The Board shall not grant a license to a person who

18 has facilitated, enabled, or participated in the use of

19 coin-operated devices for gambling purposes or who is under the

20 significant influence or control of such a person. For the

21 purposes of this Act, "facilitated, enabled, or participated in

22 the use of coin-operated amusement devices for gambling

23 purposes" means that the person has been convicted of any

24 violation of Article 28 of the Criminal Code of 1961 or the

25 Criminal Code of 2012. If there is pending legal action against

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1 a person for any such violation, then the Board shall delay the

2 licensure of that person until the legal action is resolved.

3 (b) Each person seeking and possessing a license as a video

4 gaming terminal manufacturer, distributor, supplier, operator,

5 handler, licensed establishment, licensed truck stop

6 establishment, licensed fraternal establishment, or licensed

7 veterans establishment shall submit to a background

8 investigation conducted by the Board with the assistance of the

9 State Police or other law enforcement. The background

10 investigation shall include each beneficiary of a trust, each

11 partner of a partnership, and each director and officer and all

12 stockholders of 5% or more in a parent or subsidiary

13 corporation of a video gaming terminal manufacturer,

14 distributor, supplier, operator, or licensed establishment,

15 licensed truck stop establishment, licensed fraternal

16 establishment, or licensed veterans establishment.

17 (c) Each person seeking and possessing a license as a video

18 gaming terminal manufacturer, distributor, supplier, operator,

19 handler, licensed establishment, licensed truck stop

20 establishment, licensed fraternal establishment, or licensed

21 veterans establishment shall disclose the identity of every

22 person, association, trust, corporation, or limited liability

23 company having a greater than 1% direct or indirect pecuniary

24 interest in the video gaming terminal operation for which the

25 license is sought. If the disclosed entity is a trust, the

26 application shall disclose the names and addresses of the

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1 beneficiaries; if a corporation, the names and addresses of all

2 stockholders and directors; if a limited liability company, the

3 names and addresses of all members; or if a partnership, the

4 names and addresses of all partners, both general and limited.

5 (d) No person may be licensed as a video gaming terminal

6 manufacturer, distributor, supplier, operator, handler,

7 licensed establishment, licensed truck stop establishment,

8 licensed fraternal establishment, or licensed veterans

9 establishment if that person has been found by the Board to:

10 (1) have a background, including a criminal record,

11 reputation, habits, social or business associations, or

12 prior activities that pose a threat to the public interests

13 of the State or to the security and integrity of video

14 gaming;

15 (2) create or enhance the dangers of unsuitable,

16 unfair, or illegal practices, methods, and activities in

17 the conduct of video gaming; or

18 (3) present questionable business practices and

19 financial arrangements incidental to the conduct of video

20 gaming activities.

21 (e) Any applicant for any license under this Act has the

22 burden of proving his or her qualifications to the satisfaction

23 of the Board. The Board may adopt rules to establish additional

24 qualifications and requirements to preserve the integrity and

25 security of video gaming in this State.

26 (f) A non-refundable application fee shall be paid at the

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1 time an application for a license is filed with the Board in

2 the following amounts:

3 (1) Manufacturer..........................$5,000

4 (2) Distributor...........................$5,000

5 (3) Terminal operator.....................$5,000

6 (4) Supplier..............................$2,500

7 (5) Technician..............................$100

8 (6) Terminal Handler..............................$50

9 (g) The Board shall establish an annual fee for each

10 license not to exceed the following:

11 (1) Manufacturer.........................$10,000

12 (2) Distributor..........................$10,000

13 (3) Terminal operator.....................$5,000

14 (4) Supplier..............................$2,000

15 (5) Technician..............................$100

16 (6) Licensed establishment, licensed truck stop

17 establishment, licensed fraternal establishment,

18 or licensed veterans establishment..............$100

19 (7) Video gaming terminal...................$100

20 (8) Terminal Handler..............................$50

21 (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,

22 eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;

23 97-1150, eff. 1-25-13.)

24 (230 ILCS 40/79)

25 Sec. 79. Investigators. Investigators appointed by the

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1 Board pursuant to the powers conferred upon the Board by

2 paragraph (20.6) of subsection (c) of Section 5 of the Illinois

3 ~~Riverboat~~ Gambling Act and Section 80 of this Act shall have

4 authority to conduct investigations, searches, seizures,

5 arrests, and other duties imposed under this Act and the

6 Illinois ~~Riverboat~~ Gambling Act, as deemed necessary by the

7 Board. These investigators have and may exercise all of the

8 rights and powers of peace officers, provided that these powers

9 shall be (1) limited to offenses or violations occurring or

10 committed in connection with conduct subject to this Act,

11 including, but not limited to, the manufacture, distribution,

12 supply, operation, placement, service, maintenance, or play of

13 video gaming terminals and the distribution of profits and

14 collection of revenues resulting from such play, and (2)

15 exercised, to the fullest extent practicable, in cooperation

16 with the local police department of the applicable municipality

17 or, if these powers are exercised outside the boundaries of an

18 incorporated municipality or within a municipality that does

19 not have its own police department, in cooperation with the

20 police department whose jurisdiction encompasses the

21 applicable locality.

22 (Source: P.A. 97-809, eff. 7-13-12.)

23 (230 ILCS 40/80)

24 Sec. 80. Applicability of Illinois ~~Riverboat~~ Gambling Act.

25 The provisions of the Illinois ~~Riverboat~~ Gambling Act, and all

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1 rules promulgated thereunder, shall apply to the Video Gaming

2 Act, except where there is a conflict between the 2 Acts. In

3 the event of a conflict between the 2 Acts, the provisions of

4 the Illinois Gambling Act shall prevail. All provisions of the

5 Uniform Penalty and Interest Act shall apply, as far as

6 practicable, to the subject matter of this Act to the same

7 extent as if such provisions were included herein.

8 (Source: P.A. 96-37, eff. 7-13-09.)

9 (230 ILCS 40/81 new)

10 Sec. 81. Prohibition of political contributions from

11 certain licensees and applicants.

12 (a) The General Assembly has a compelling interest in

13 protecting the integrity of both the electoral process and the

14 legislative process by preventing corruption and the

15 appearance of corruption which may arise through permitting

16 certain political campaign contributions by certain persons

17 involved in the gaming industry and regulated by the State.

18 Unlike most other regulated industries, gaming is especially

19 susceptible to corruption and potential criminal influence.

20 In Illinois, only licensed gaming activities are legal and

21 all other gaming activities are strictly prohibited. Given

22 these circumstances, it is imperative to eliminate any

23 potential corrupt influence in the gaming industry and the

24 electoral process. Banning political campaign contributions by

25 certain persons subject to this Section to State officeholders

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1 and candidates for such offices and, where necessary, to county

2 and municipal officeholders and candidates for such offices in

3 counties and municipalities that receive financial benefits

4 from gaming activities is necessary to prevent corruption and

5 the appearance of corruption that may arise when political

6 campaign contributions and gaming that is regulated by the

7 State and that confers benefits on counties and municipalities

8 are intermingled.

9 (b) As used in this Section:

10 "Affiliated entity" means (i) any corporate parent and each

11 operating subsidiary of the business entity applying for or

12 holding a license, (ii) each operating subsidiary of the

13 corporate parent of the business entity applying for or holding

14 a license, (iii) any organization recognized by the United

15 States Internal Revenue Service as a tax-exempt organization

16 described in Section 501(c) of the Internal Revenue Code of

17 1986 (or any successor provision of federal tax law)

18 established by one or more business entities seeking or holding

19 a license, any affiliated entity of such business entity, or

20 any affiliated person of such business entity, and (iv) any

21 political committee for which the business entity applying for

22 or holding a license, or any 501(c) organization described in

23 item (iii) related to that business entity, is the sponsoring

24 entity, as defined in Section 9-3 of the Election Code. For

25 purposes of item (iv), the funding of all business entities

26 applying for or holding a license shall be aggregated in

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1 determining whether such political committee is an affiliated

2 entity.

3 "Affiliated person" means (i) any person with any ownership

4 interest or distributive share in excess of 7.5% of any

5 business entity applying for or holding a license, (ii)

6 executive employees of any such business entity, (iii) any

7 person designated as a person of significant influence and

8 control under the Video Gaming Act, and (iv) the spouse of such

9 persons.

10 "Business entity" means any entity doing business for

11 profit, whether organized as a corporation, partnership, sole

12 proprietorship, limited liability company, or partnership or

13 otherwise.

14 "Contribution" means a contribution as defined in Section

15 9-1.4 of the Election Code.

16 "Declared candidate" means a person who has filed a

17 statement of candidacy and petition for nomination or election

18 in the principal office of the State Board of Elections, or in

19 the office of the appropriate election authority for any county

20 or municipality in which a video gaming terminal is located or

21 proposed or which receives any video gaming revenue, for the

22 office of Governor, Lieutenant Governor, Attorney General,

23 Secretary of State, Comptroller, Treasurer, member of the

24 General Assembly, chief executive or any member of the

25 legislative body of any municipality in which a video gaming

26 terminal is located or proposed or which receives any video

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1 gaming revenue, or chief executive or any member of the

2 legislative body of any county containing any unincorporated

3 area in which a video gaming terminal is located or which

4 receives any video gaming revenue.

5 "Executive employee" means any person who is an officer or

6 director or who fulfills duties equivalent to those of an

7 officer or director of a business entity applying for or

8 holding a license; and (ii) any employee of such business

9 entity who is required to register under the Lobbyist

10 Registration Act.

11 "License" means any license issued pursuant to this Act.

12 "Officeholder" means the Governor, the Lieutenant

13 Governor, the Attorney General, the Secretary of State, the

14 Comptroller, the Treasurer, a member of the General Assembly,

15 the chief executive or any member of the legislative body of

16 any municipality in which a video gaming terminal is located or

17 proposed or which receives any video gaming revenue, or the

18 chief executive or any member of the legislative body of any

19 county containing any unincorporated area in which a video

20 gaming terminal is located or which receives any video gaming

21 revenue.

22 (c) Any person or business entity applying for or holding a

23 manufacturer or distributor license, any affiliated entities

24 or persons of such business entity, and any entities or persons

25 soliciting a contribution or causing a contribution to be made

26 on behalf of such person or business entity, are prohibited

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1 from making any contribution to any officeholder or declared

2 candidate or any political committee affiliated with any

3 officeholder or declared candidate, as defined in Section 9-1.8

4 of the Election Code.

5 The Board shall have authority to suspend, revoke, or

6 restrict the license and to impose civil penalties of up to

7 $100,000, for each violation of this subsection (c). A notice

8 of each such violation and the penalty imposed shall be

9 published on the Board's website and in the Illinois Register.

10 Payments received by the State pursuant to this subsection

11 shall be deposited into the General Revenue Fund.

12 Any person or business entity applying for or holding a

13 terminal operator license, any affiliated entities or persons

14 of such business entity, and any entities or persons soliciting

15 a contribution or causing a contribution to be made on behalf

16 of such person or business entity, are prohibited from making

17 any contribution to any officeholder or declared candidate or

18 any political committee affiliated with any officeholder or

19 declared candidate, as defined in Section 9-1.8 of the Election

20 Code, except that any such person or entity may make a

21 contribution to the chief executive or any member of the

22 legislative body of any municipality in which a video gaming

23 terminal is located or proposed or which receives any video

24 gaming revenue, the chief executive or any member of the

25 legislative body of any county containing any unincorporated

26 area in which a video gaming terminal is located or which

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1 receives any video gaming revenue, or any declared candidates

2 for such offices, so long as the video gaming terminal

3 associated with the terminal operator license held or applied

4 for is not located in the same municipality or county in which

5 the officeholder or declared candidate holds or is seeking

6 office. This prohibition shall commence upon filing of an

7 application for a license and shall continue for a period of 2

8 years after termination, suspension, or revocation of the

9 license.

10 Any officeholder or declared candidate or any political

11 committee affiliated with any officeholder or declared

12 candidate that has received a contribution in violation of this

13 subsection (c) shall pay an amount equal to the value of the

14 contribution to the State no more than 30 days after notice of

15 the violation concerning the contribution appears in the

16 Illinois Register. Payments received by the State pursuant to

17 this subsection shall be deposited into the General Revenue

18 Fund.

19 The provisions of this subsection (c) shall apply only to

20 persons or entities applying for or holding a manufacturer

21 license, a distributor license, or a terminal operator license

22 and shall not apply to persons or entities applying for or

23 holding any other licenses under this Act.

24 (d) The Board shall post on its website a list of all

25 persons, business entities, and affiliated entities prohibited

26 from making contributions to any officeholder or declared

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1 candidate political committee pursuant to subsection (c),

2 which list shall be updated and published on, at a minimum, a

3 semiannual basis.

4 Any person, business entity, or affiliated entity

5 prohibited from making contributions to any officeholder or

6 declared candidate political committee pursuant to subsection

7 (c) of this Section shall notify the Board within 7 days after

8 discovering any necessary change or addition to the information

9 relating to that person, business entity, or affiliated entity

10 contained in the list.

11 An individual who acts in good faith and in reliance on any

12 information contained in the list shall not be subject to any

13 penalties or liability imposed for a violation of this Section.

14 (e) If any provision of this Section is held invalid or its

15 application to any person or circumstance is held invalid, the

16 invalidity of that provision or application does not affect the

17 other provisions or applications of this Section that can be

18 given effect without the invalid application or provision.

19 Section 90-45. The Liquor Control Act of 1934 is amended by

20 changing Sections 5-1 and 6-30 as follows:

21 (235 ILCS 5/5-1) (from Ch. 43, par. 115)

22 Sec. 5-1. Licenses issued by the Illinois Liquor Control

23 Commission shall be of the following classes:

24 (a) Manufacturer's license - Class 1. Distiller, Class 2.

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1 Rectifier, Class 3. Brewer, Class 4. First Class Wine

2 Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.

3 First Class Winemaker, Class 7. Second Class Winemaker, Class

4 8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class

5 10. Craft Brewer,

6 (b) Distributor's license,

7 (c) Importing Distributor's license,

8 (d) Retailer's license,

9 (e) Special Event Retailer's license (not-for-profit),

10 (f) Railroad license,

11 (g) Boat license,

12 (h) Non-Beverage User's license,

13 (i) Wine-maker's premises license,

14 (j) Airplane license,

15 (k) Foreign importer's license,

16 (l) Broker's license,

17 (m) Non-resident dealer's license,

18 (n) Brew Pub license,

19 (o) Auction liquor license,

20 (p) Caterer retailer license,

21 (q) Special use permit license,

22 (r) Winery shipper's license.

23 No person, firm, partnership, corporation, or other legal

24 business entity that is engaged in the manufacturing of wine

25 may concurrently obtain and hold a wine-maker's license and a

26 wine manufacturer's license.

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1 (a) A manufacturer's license shall allow the manufacture,

2 importation in bulk, storage, distribution and sale of

3 alcoholic liquor to persons without the State, as may be

4 permitted by law and to licensees in this State as follows:

5 Class 1. A Distiller may make sales and deliveries of

6 alcoholic liquor to distillers, rectifiers, importing

7 distributors, distributors and non-beverage users and to no

8 other licensees.

9 Class 2. A Rectifier, who is not a distiller, as defined

10 herein, may make sales and deliveries of alcoholic liquor to

11 rectifiers, importing distributors, distributors, retailers

12 and non-beverage users and to no other licensees.

13 Class 3. A Brewer may make sales and deliveries of beer to

14 importing distributors and distributors and may make sales as

15 authorized under subsection (e) of Section 6-4 of this Act.

16 Class 4. A first class wine-manufacturer may make sales and

17 deliveries of up to 50,000 gallons of wine to manufacturers,

18 importing distributors and distributors, and to no other

19 licensees.

20 Class 5. A second class Wine manufacturer may make sales

21 and deliveries of more than 50,000 gallons of wine to

22 manufacturers, importing distributors and distributors and to

23 no other licensees.

24 Class 6. A first-class wine-maker's license shall allow the

25 manufacture of up to 50,000 gallons of wine per year, and the

26 storage and sale of such wine to distributors in the State and

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1 to persons without the State, as may be permitted by law. A

2 person who, prior to the effective date of this amendatory Act

3 of the 95th General Assembly, is a holder of a first-class

4 wine-maker's license and annually produces more than 25,000

5 gallons of its own wine and who distributes its wine to

6 licensed retailers shall cease this practice on or before July

7 1, 2008 in compliance with this amendatory Act of the 95th

8 General Assembly.

9 Class 7. A second-class wine-maker's license shall allow

10 the manufacture of between 50,000 and 150,000 gallons of wine

11 per year, and the storage and sale of such wine to distributors

12 in this State and to persons without the State, as may be

13 permitted by law. A person who, prior to the effective date of

14 this amendatory Act of the 95th General Assembly, is a holder

15 of a second-class wine-maker's license and annually produces

16 more than 25,000 gallons of its own wine and who distributes

17 its wine to licensed retailers shall cease this practice on or

18 before July 1, 2008 in compliance with this amendatory Act of

19 the 95th General Assembly.

20 Class 8. A limited wine-manufacturer may make sales and

21 deliveries not to exceed 40,000 gallons of wine per year to

22 distributors, and to non-licensees in accordance with the

23 provisions of this Act.

24 Class 9. A craft distiller license shall allow the

25 manufacture of up to 15,000 gallons of spirits by distillation

26 per year and the storage of such spirits. If a craft distiller

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1 licensee is not affiliated with any other manufacturer, then

2 the craft distiller licensee may sell such spirits to

3 distributors in this State and non-licensees to the extent

4 permitted by any exemption approved by the Commission pursuant

5 to Section 6-4 of this Act.

6 Any craft distiller licensed under this Act who on the

7 effective date of this amendatory Act of the 96th General

8 Assembly was licensed as a distiller and manufactured no more

9 spirits than permitted by this Section shall not be required to

10 pay the initial licensing fee.

11 Class 10. A craft brewer's license, which may only be

12 issued to a licensed brewer or licensed non-resident dealer,

13 shall allow the manufacture of up to 465,000 gallons of beer

14 per year. A craft brewer licensee may make sales and deliveries

15 to importing distributors and distributors and to retail

16 licensees in accordance with the conditions set forth in

17 paragraph (18) of subsection (a) of Section 3-12 of this Act.

18 (a-1) A manufacturer which is licensed in this State to

19 make sales or deliveries of alcoholic liquor and which enlists

20 agents, representatives, or individuals acting on its behalf

21 who contact licensed retailers on a regular and continual basis

22 in this State must register those agents, representatives, or

23 persons acting on its behalf with the State Commission.

24 Registration of agents, representatives, or persons acting

25 on behalf of a manufacturer is fulfilled by submitting a form

26 to the Commission. The form shall be developed by the

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1 Commission and shall include the name and address of the

2 applicant, the name and address of the manufacturer he or she

3 represents, the territory or areas assigned to sell to or

4 discuss pricing terms of alcoholic liquor, and any other

5 questions deemed appropriate and necessary. All statements in

6 the forms required to be made by law or by rule shall be deemed

7 material, and any person who knowingly misstates any material

8 fact under oath in an application is guilty of a Class B

9 misdemeanor. Fraud, misrepresentation, false statements,

10 misleading statements, evasions, or suppression of material

11 facts in the securing of a registration are grounds for

12 suspension or revocation of the registration.

13 (b) A distributor's license shall allow the wholesale

14 purchase and storage of alcoholic liquors and sale of alcoholic

15 liquors to licensees in this State and to persons without the

16 State, as may be permitted by law.

17 (c) An importing distributor's license may be issued to and

18 held by those only who are duly licensed distributors, upon the

19 filing of an application by a duly licensed distributor, with

20 the Commission and the Commission shall, without the payment of

21 any fee, immediately issue such importing distributor's

22 license to the applicant, which shall allow the importation of

23 alcoholic liquor by the licensee into this State from any point

24 in the United States outside this State, and the purchase of

25 alcoholic liquor in barrels, casks or other bulk containers and

26 the bottling of such alcoholic liquors before resale thereof,

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1 but all bottles or containers so filled shall be sealed,

2 labeled, stamped and otherwise made to comply with all

3 provisions, rules and regulations governing manufacturers in

4 the preparation and bottling of alcoholic liquors. The

5 importing distributor's license shall permit such licensee to

6 purchase alcoholic liquor from Illinois licensed non-resident

7 dealers and foreign importers only.

8 (d) A retailer's license shall allow the licensee to sell

9 and offer for sale at retail, only in the premises specified in

10 the license, alcoholic liquor for use or consumption, but not

11 for resale in any form. Nothing in this amendatory Act of the

12 95th General Assembly shall deny, limit, remove, or restrict

13 the ability of a holder of a retailer's license to transfer,

14 deliver, or ship alcoholic liquor to the purchaser for use or

15 consumption subject to any applicable local law or ordinance.

16 Any retail license issued to a manufacturer shall only permit

17 the manufacturer to sell beer at retail on the premises

18 actually occupied by the manufacturer. For the purpose of

19 further describing the type of business conducted at a retail

20 licensed premises, a retailer's licensee may be designated by

21 the State Commission as (i) an on premise consumption retailer,

22 (ii) an off premise sale retailer, or (iii) a combined on

23 premise consumption and off premise sale retailer.

24 Notwithstanding any other provision of this subsection

25 (d), a retail licensee may sell alcoholic liquors to a special

26 event retailer licensee for resale to the extent permitted

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1 under subsection (e).

2 (e) A special event retailer's license (not-for-profit)

3 shall permit the licensee to purchase alcoholic liquors from an

4 Illinois licensed distributor (unless the licensee purchases

5 less than $500 of alcoholic liquors for the special event, in

6 which case the licensee may purchase the alcoholic liquors from

7 a licensed retailer) and shall allow the licensee to sell and

8 offer for sale, at retail, alcoholic liquors for use or

9 consumption, but not for resale in any form and only at the

10 location and on the specific dates designated for the special

11 event in the license. An applicant for a special event retailer

12 license must (i) furnish with the application: (A) a resale

13 number issued under Section 2c of the Retailers' Occupation Tax

14 Act or evidence that the applicant is registered under Section

15 2a of the Retailers' Occupation Tax Act, (B) a current, valid

16 exemption identification number issued under Section 1g of the

17 Retailers' Occupation Tax Act, and a certification to the

18 Commission that the purchase of alcoholic liquors will be a

19 tax-exempt purchase, or (C) a statement that the applicant is

20 not registered under Section 2a of the Retailers' Occupation

21 Tax Act, does not hold a resale number under Section 2c of the

22 Retailers' Occupation Tax Act, and does not hold an exemption

23 number under Section 1g of the Retailers' Occupation Tax Act,

24 in which event the Commission shall set forth on the special

25 event retailer's license a statement to that effect; (ii)

26 submit with the application proof satisfactory to the State

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1 Commission that the applicant will provide dram shop liability

2 insurance in the maximum limits; and (iii) show proof

3 satisfactory to the State Commission that the applicant has

4 obtained local authority approval.

5 (f) A railroad license shall permit the licensee to import

6 alcoholic liquors into this State from any point in the United

7 States outside this State and to store such alcoholic liquors

8 in this State; to make wholesale purchases of alcoholic liquors

9 directly from manufacturers, foreign importers, distributors

10 and importing distributors from within or outside this State;

11 and to store such alcoholic liquors in this State; provided

12 that the above powers may be exercised only in connection with

13 the importation, purchase or storage of alcoholic liquors to be

14 sold or dispensed on a club, buffet, lounge or dining car

15 operated on an electric, gas or steam railway in this State;

16 and provided further, that railroad licensees exercising the

17 above powers shall be subject to all provisions of Article VIII

18 of this Act as applied to importing distributors. A railroad

19 license shall also permit the licensee to sell or dispense

20 alcoholic liquors on any club, buffet, lounge or dining car

21 operated on an electric, gas or steam railway regularly

22 operated by a common carrier in this State, but shall not

23 permit the sale for resale of any alcoholic liquors to any

24 licensee within this State. A license shall be obtained for

25 each car in which such sales are made.

26 (g) A boat license shall allow the sale of alcoholic liquor

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1 in individual drinks, on any passenger boat regularly operated

2 as a common carrier on navigable waters in this State or on any

3 riverboat operated under theIllinois ~~Riverboat~~ Gambling Act,

4 which boat or riverboat maintains a public dining room or

5 restaurant thereon.

6 (h) A non-beverage user's license shall allow the licensee

7 to purchase alcoholic liquor from a licensed manufacturer or

8 importing distributor, without the imposition of any tax upon

9 the business of such licensed manufacturer or importing

10 distributor as to such alcoholic liquor to be used by such

11 licensee solely for the non-beverage purposes set forth in

12 subsection (a) of Section 8-1 of this Act, and such licenses

13 shall be divided and classified and shall permit the purchase,

14 possession and use of limited and stated quantities of

15 alcoholic liquor as follows:

16 Class 1, not to exceed .........................500 gallons

17 Class 2, not to exceed .......................1,000 gallons

18 Class 3, not to exceed .......................5,000 gallons

19 Class 4, not to exceed ......................10,000 gallons

20 Class 5, not to exceed ....................... 50,000 gallons

21 (i) A wine-maker's premises license shall allow a licensee

22 that concurrently holds a first-class wine-maker's license to

23 sell and offer for sale at retail in the premises specified in

24 such license not more than 50,000 gallons of the first-class

25 wine-maker's wine that is made at the first-class wine-maker's

26 licensed premises per year for use or consumption, but not for

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1 resale in any form. A wine-maker's premises license shall allow

2 a licensee who concurrently holds a second-class wine-maker's

3 license to sell and offer for sale at retail in the premises

4 specified in such license up to 100,000 gallons of the

5 second-class wine-maker's wine that is made at the second-class

6 wine-maker's licensed premises per year for use or consumption

7 but not for resale in any form. A wine-maker's premises license

8 shall allow a licensee that concurrently holds a first-class

9 wine-maker's license or a second-class wine-maker's license to

10 sell and offer for sale at retail at the premises specified in

11 the wine-maker's premises license, for use or consumption but

12 not for resale in any form, any beer, wine, and spirits

13 purchased from a licensed distributor. Upon approval from the

14 State Commission, a wine-maker's premises license shall allow

15 the licensee to sell and offer for sale at (i) the wine-maker's

16 licensed premises and (ii) at up to 2 additional locations for

17 use and consumption and not for resale. Each location shall

18 require additional licensing per location as specified in

19 Section 5-3 of this Act. A wine-maker's premises licensee shall

20 secure liquor liability insurance coverage in an amount at

21 least equal to the maximum liability amounts set forth in

22 subsection (a) of Section 6-21 of this Act.

23 (j) An airplane license shall permit the licensee to import

24 alcoholic liquors into this State from any point in the United

25 States outside this State and to store such alcoholic liquors

26 in this State; to make wholesale purchases of alcoholic liquors

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1 directly from manufacturers, foreign importers, distributors

2 and importing distributors from within or outside this State;

3 and to store such alcoholic liquors in this State; provided

4 that the above powers may be exercised only in connection with

5 the importation, purchase or storage of alcoholic liquors to be

6 sold or dispensed on an airplane; and provided further, that

7 airplane licensees exercising the above powers shall be subject

8 to all provisions of Article VIII of this Act as applied to

9 importing distributors. An airplane licensee shall also permit

10 the sale or dispensing of alcoholic liquors on any passenger

11 airplane regularly operated by a common carrier in this State,

12 but shall not permit the sale for resale of any alcoholic

13 liquors to any licensee within this State. A single airplane

14 license shall be required of an airline company if liquor

15 service is provided on board aircraft in this State. The annual

16 fee for such license shall be as determined in Section 5-3.

17 (k) A foreign importer's license shall permit such licensee

18 to purchase alcoholic liquor from Illinois licensed

19 non-resident dealers only, and to import alcoholic liquor other

20 than in bulk from any point outside the United States and to

21 sell such alcoholic liquor to Illinois licensed importing

22 distributors and to no one else in Illinois; provided that (i)

23 the foreign importer registers with the State Commission every

24 brand of alcoholic liquor that it proposes to sell to Illinois

25 licensees during the license period, (ii) the foreign importer

26 complies with all of the provisions of Section 6-9 of this Act

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1 with respect to registration of such Illinois licensees as may

2 be granted the right to sell such brands at wholesale, and

3 (iii) the foreign importer complies with the provisions of

4 Sections 6-5 and 6-6 of this Act to the same extent that these

5 provisions apply to manufacturers.

6 (l) (i) A broker's license shall be required of all persons

7 who solicit orders for, offer to sell or offer to supply

8 alcoholic liquor to retailers in the State of Illinois, or who

9 offer to retailers to ship or cause to be shipped or to make

10 contact with distillers, rectifiers, brewers or manufacturers

11 or any other party within or without the State of Illinois in

12 order that alcoholic liquors be shipped to a distributor,

13 importing distributor or foreign importer, whether such

14 solicitation or offer is consummated within or without the

15 State of Illinois.

16 No holder of a retailer's license issued by the Illinois

17 Liquor Control Commission shall purchase or receive any

18 alcoholic liquor, the order for which was solicited or offered

19 for sale to such retailer by a broker unless the broker is the

20 holder of a valid broker's license.

21 The broker shall, upon the acceptance by a retailer of the

22 broker's solicitation of an order or offer to sell or supply or

23 deliver or have delivered alcoholic liquors, promptly forward

24 to the Illinois Liquor Control Commission a notification of

25 said transaction in such form as the Commission may by

26 regulations prescribe.

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1 (ii) A broker's license shall be required of a person

2 within this State, other than a retail licensee, who, for a fee

3 or commission, promotes, solicits, or accepts orders for

4 alcoholic liquor, for use or consumption and not for resale, to

5 be shipped from this State and delivered to residents outside

6 of this State by an express company, common carrier, or

7 contract carrier. This Section does not apply to any person who

8 promotes, solicits, or accepts orders for wine as specifically

9 authorized in Section 6-29 of this Act.

10 A broker's license under this subsection (l) shall not

11 entitle the holder to buy or sell any alcoholic liquors for his

12 own account or to take or deliver title to such alcoholic

13 liquors.

14 This subsection (l) shall not apply to distributors,

15 employees of distributors, or employees of a manufacturer who

16 has registered the trademark, brand or name of the alcoholic

17 liquor pursuant to Section 6-9 of this Act, and who regularly

18 sells such alcoholic liquor in the State of Illinois only to

19 its registrants thereunder.

20 Any agent, representative, or person subject to

21 registration pursuant to subsection (a-1) of this Section shall

22 not be eligible to receive a broker's license.

23 (m) A non-resident dealer's license shall permit such

24 licensee to ship into and warehouse alcoholic liquor into this

25 State from any point outside of this State, and to sell such

26 alcoholic liquor to Illinois licensed foreign importers and

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1 importing distributors and to no one else in this State;

2 provided that (i) said non-resident dealer shall register with

3 the Illinois Liquor Control Commission each and every brand of

4 alcoholic liquor which it proposes to sell to Illinois

5 licensees during the license period, (ii) it shall comply with

6 all of the provisions of Section 6-9 hereof with respect to

7 registration of such Illinois licensees as may be granted the

8 right to sell such brands at wholesale, and (iii) the

9 non-resident dealer shall comply with the provisions of

10 Sections 6-5 and 6-6 of this Act to the same extent that these

11 provisions apply to manufacturers.

12 (n) A brew pub license shall allow the licensee (i) to

13 manufacture beer only on the premises specified in the license,

14 (ii) to make sales of the beer manufactured on the premises or,

15 with the approval of the Commission, beer manufactured on

16 another brew pub licensed premises that is substantially owned

17 and operated by the same licensee to importing distributors,

18 distributors, and to non-licensees for use and consumption,

19 (iii) to store the beer upon the premises, and (iv) to sell and

20 offer for sale at retail from the licensed premises, provided

21 that a brew pub licensee shall not sell for off-premises

22 consumption more than 50,000 gallons per year. A person who

23 holds a brew pub license may simultaneously hold a craft brewer

24 license if he or she otherwise qualifies for the craft brewer

25 license and the craft brewer license is for a location separate

26 from the brew pub's licensed premises. A brew pub license shall

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1 permit a person who has received prior approval from the

2 Commission to annually transfer no more than a total of 50,000

3 gallons of beer manufactured on premises to all other licensed

4 brew pubs that are substantially owned and operated by the same

5 person.

6 (o) A caterer retailer license shall allow the holder to

7 serve alcoholic liquors as an incidental part of a food service

8 that serves prepared meals which excludes the serving of snacks

9 as the primary meal, either on or off-site whether licensed or

10 unlicensed.

11 (p) An auction liquor license shall allow the licensee to

12 sell and offer for sale at auction wine and spirits for use or

13 consumption, or for resale by an Illinois liquor licensee in

14 accordance with provisions of this Act. An auction liquor

15 license will be issued to a person and it will permit the

16 auction liquor licensee to hold the auction anywhere in the

17 State. An auction liquor license must be obtained for each

18 auction at least 14 days in advance of the auction date.

19 (q) A special use permit license shall allow an Illinois

20 licensed retailer to transfer a portion of its alcoholic liquor

21 inventory from its retail licensed premises to the premises

22 specified in the license hereby created, and to sell or offer

23 for sale at retail, only in the premises specified in the

24 license hereby created, the transferred alcoholic liquor for

25 use or consumption, but not for resale in any form. A special

26 use permit license may be granted for the following time

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1 periods: one day or less; 2 or more days to a maximum of 15 days

2 per location in any 12 month period. An applicant for the

3 special use permit license must also submit with the

4 application proof satisfactory to the State Commission that the

5 applicant will provide dram shop liability insurance to the

6 maximum limits and have local authority approval.

7 (r) A winery shipper's license shall allow a person with a

8 first-class or second-class wine manufacturer's license, a

9 first-class or second-class wine-maker's license, or a limited

10 wine manufacturer's license or who is licensed to make wine

11 under the laws of another state to ship wine made by that

12 licensee directly to a resident of this State who is 21 years

13 of age or older for that resident's personal use and not for

14 resale. Prior to receiving a winery shipper's license, an

15 applicant for the license must provide the Commission with a

16 true copy of its current license in any state in which it is

17 licensed as a manufacturer of wine. An applicant for a winery

18 shipper's license must also complete an application form that

19 provides any other information the Commission deems necessary.

20 The application form shall include an acknowledgement

21 consenting to the jurisdiction of the Commission, the Illinois

22 Department of Revenue, and the courts of this State concerning

23 the enforcement of this Act and any related laws, rules, and

24 regulations, including authorizing the Department of Revenue

25 and the Commission to conduct audits for the purpose of

26 ensuring compliance with this amendatory Act.

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1 A winery shipper licensee must pay to the Department of

2 Revenue the State liquor gallonage tax under Section 8-1 for

3 all wine that is sold by the licensee and shipped to a person

4 in this State. For the purposes of Section 8-1, a winery

5 shipper licensee shall be taxed in the same manner as a

6 manufacturer of wine. A licensee who is not otherwise required

7 to register under the Retailers' Occupation Tax Act must

8 register under the Use Tax Act to collect and remit use tax to

9 the Department of Revenue for all gallons of wine that are sold

10 by the licensee and shipped to persons in this State. If a

11 licensee fails to remit the tax imposed under this Act in

12 accordance with the provisions of Article VIII of this Act, the

13 winery shipper's license shall be revoked in accordance with

14 the provisions of Article VII of this Act. If a licensee fails

15 to properly register and remit tax under the Use Tax Act or the

16 Retailers' Occupation Tax Act for all wine that is sold by the

17 winery shipper and shipped to persons in this State, the winery

18 shipper's license shall be revoked in accordance with the

19 provisions of Article VII of this Act.

20 A winery shipper licensee must collect, maintain, and

21 submit to the Commission on a semi-annual basis the total

22 number of cases per resident of wine shipped to residents of

23 this State. A winery shipper licensed under this subsection (r)

24 must comply with the requirements of Section 6-29 of this

25 amendatory Act.

26 (Source: P.A. 96-1367, eff. 7-28-10; 97-5, eff. 6-1-11; 97-455,

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1 eff. 8-19-11; 97-813, eff. 7-13-12.)

2 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)

3 Sec. 6-30. Notwithstanding any other provision of this Act,

4 the Illinois Gaming Board shall have exclusive authority to

5 establish the hours for sale and consumption of alcoholic

6 liquor on board a riverboat during riverboat gambling

7 excursions and in a casino conducted in accordance with the

8 Illinois ~~Riverboat~~Gambling Act.

9 (Source: P.A. 87-826.)

10 Section 90-50. The Criminal Code of 2012 is amended by

11 changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as

12 follows:

13 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

14 Sec. 28-1. Gambling.

15 (a) A person commits gambling when he or she:

16 (1) knowingly plays a game of chance or skill for money

17 or other thing of value, unless excepted in subsection (b)

18 of this Section;

19 (2) knowingly makes a wager upon the result of any

20 game, contest, or any political nomination, appointment or

21 election;

22 (3) knowingly operates, keeps, owns, uses, purchases,

23 exhibits, rents, sells, bargains for the sale or lease of,

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1 manufactures or distributes any gambling device;

2 (4) contracts to have or give himself or herself or

3 another the option to buy or sell, or contracts to buy or

4 sell, at a future time, any grain or other commodity

5 whatsoever, or any stock or security of any company, where

6 it is at the time of making such contract intended by both

7 parties thereto that the contract to buy or sell, or the

8 option, whenever exercised, or the contract resulting

9 therefrom, shall be settled, not by the receipt or delivery

10 of such property, but by the payment only of differences in

11 prices thereof; however, the issuance, purchase, sale,

12 exercise, endorsement or guarantee, by or through a person

13 registered with the Secretary of State pursuant to Section

14 8 of the Illinois Securities Law of 1953, or by or through

15 a person exempt from such registration under said Section

16 8, of a put, call, or other option to buy or sell

17 securities which have been registered with the Secretary of

18 State or which are exempt from such registration under

19 Section 3 of the Illinois Securities Law of 1953 is not

20 gambling within the meaning of this paragraph (4);

21 (5) knowingly owns or possesses any book, instrument or

22 apparatus by means of which bets or wagers have been, or

23 are, recorded or registered, or knowingly possesses any

24 money which he has received in the course of a bet or

25 wager;

26 (6) knowingly sells pools upon the result of any game

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1 or contest of skill or chance, political nomination,

2 appointment or election;

3 (7) knowingly sets up or promotes any lottery or sells,

4 offers to sell or transfers any ticket or share for any

5 lottery;

6 (8) knowingly sets up or promotes any policy game or

7 sells, offers to sell or knowingly possesses or transfers

8 any policy ticket, slip, record, document or other similar

9 device;

10 (9) knowingly drafts, prints or publishes any lottery

11 ticket or share, or any policy ticket, slip, record,

12 document or similar device, except for such activity

13 related to lotteries, bingo games and raffles authorized by

14 and conducted in accordance with the laws of Illinois or

15 any other state or foreign government;

16 (10) knowingly advertises any lottery or policy game,

17 except for such activity related to lotteries, bingo games

18 and raffles authorized by and conducted in accordance with

19 the laws of Illinois or any other state;

20 (11) knowingly transmits information as to wagers,

21 betting odds, or changes in betting odds by telephone,

22 telegraph, radio, semaphore or similar means; or knowingly

23 installs or maintains equipment for the transmission or

24 receipt of such information; except that nothing in this

25 subdivision (11) prohibits transmission or receipt of such

26 information for use in news reporting of sporting events or

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1 contests; or

2 (12) knowingly establishes, maintains, or operates an

3 Internet site that permits a person to play a game of

4 chance or skill for money or other thing of value by means

5 of the Internet or to make a wager upon the result of any

6 game, contest, political nomination, appointment, or

7 election by means of the Internet. This item (12) does not

8 apply to activities referenced in items (6) and (6.1) of

9 subsection (b) of this Section.

10 (b) Participants in any of the following activities shall

11 not be convicted of gambling:

12 (1) Agreements to compensate for loss caused by the

13 happening of chance including without limitation contracts

14 of indemnity or guaranty and life or health or accident

15 insurance.

16 (2) Offers of prizes, award or compensation to the

17 actual contestants in any bona fide contest for the

18 determination of skill, speed, strength or endurance or to

19 the owners of animals or vehicles entered in such contest.

20 (3) Pari-mutuel betting as authorized by the law of

21 this State.

22 (4) Manufacture of gambling devices, including the

23 acquisition of essential parts therefor and the assembly

24 thereof, for transportation in interstate or foreign

25 commerce to any place outside this State when such

26 transportation is not prohibited by any applicable Federal

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1 law; or the manufacture, distribution, or possession of

2 video gaming terminals, as defined in the Video Gaming Act,

3 by manufacturers, distributors, and terminal operators

4 licensed to do so under the Video Gaming Act.

5 (5) The game commonly known as "bingo", when conducted

6 in accordance with the Bingo License and Tax Act.

7 (6) Lotteries when conducted by the State of Illinois

8 in accordance with the Illinois Lottery Law. This exemption

9 includes any activity conducted by the Department of

10 Revenue to sell lottery tickets pursuant to the provisions

11 of the Illinois Lottery Law and its rules.

12 (6.1) The purchase of lottery tickets through the

13 Internet for a lottery conducted by the State of Illinois

14 under the program established in Section 7.12 of the

15 Illinois Lottery Law.

16 (7) Possession of an antique slot machine that is

17 neither used nor intended to be used in the operation or

18 promotion of any unlawful gambling activity or enterprise.

19 For the purpose of this subparagraph (b)(7), an antique

20 slot machine is one manufactured 25 years ago or earlier.

21 (8) Raffles when conducted in accordance with the

22 Raffles Act.

23 (9) Charitable games when conducted in accordance with

24 the Charitable Games Act.

25 (10) Pull tabs and jar games when conducted under the

26 Illinois Pull Tabs and Jar Games Act.

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1 (11) Gambling games ~~conducted on riverboats~~when

2 authorized by the Illinois ~~Riverboat~~ Gambling Act.

3 (12) Video gaming terminal games at a licensed

4 establishment, licensed truck stop establishment, licensed

5 fraternal establishment, or licensed veterans

6 establishment when conducted in accordance with the Video

7 Gaming Act.

8 (13) Games of skill or chance where money or other

9 things of value can be won but no payment or purchase is

10 required to participate.

11 (c) Sentence.

12 Gambling is a Class A misdemeanor. A second or subsequent

13 conviction under subsections (a)(3) through (a)(12), is a Class

14 4 felony.

15 (d) Circumstantial evidence.

16 In prosecutions under this Section circumstantial evidence

17 shall have the same validity and weight as in any criminal

18 prosecution.

19 (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;

20 96-1203, eff. 7-22-10; 97-1108, eff. 1-1-13.)

21 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)

22 Sec. 28-1.1. Syndicated gambling.

23 (a) Declaration of Purpose. Recognizing the close

24 relationship between professional gambling and other organized

25 crime, it is declared to be the policy of the legislature to

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1 restrain persons from engaging in the business of gambling for

2 profit in this State. This Section shall be liberally construed

3 and administered with a view to carrying out this policy.

4 (b) A person commits syndicated gambling when he or she

5 operates a "policy game" or engages in the business of

6 bookmaking.

7 (c) A person "operates a policy game" when he or she

8 knowingly uses any premises or property for the purpose of

9 receiving or knowingly does receive from what is commonly

10 called "policy":

11 (1) money from a person other than the bettor or player

12 whose bets or plays are represented by the money; or

13 (2) written "policy game" records, made or used over

14 any period of time, from a person other than the bettor or

15 player whose bets or plays are represented by the written

16 record.

17 (d) A person engages in bookmaking when he or she knowingly

18 receives or accepts more than five bets or wagers upon the

19 result of any trials or contests of skill, speed or power of

20 endurance or upon any lot, chance, casualty, unknown or

21 contingent event whatsoever, which bets or wagers shall be of

22 such size that the total of the amounts of money paid or

23 promised to be paid to the bookmaker on account thereof shall

24 exceed $2,000. Bookmaking is the receiving or accepting of bets

25 or wagers regardless of the form or manner in which the

26 bookmaker records them.

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1 (e) Participants in any of the following activities shall

2 not be convicted of syndicated gambling:

3 (1) Agreements to compensate for loss caused by the

4 happening of chance including without limitation contracts

5 of indemnity or guaranty and life or health or accident

6 insurance;

7 (2) Offers of prizes, award or compensation to the

8 actual contestants in any bona fide contest for the

9 determination of skill, speed, strength or endurance or to

10 the owners of animals or vehicles entered in the contest;

11 (3) Pari-mutuel betting as authorized by law of this

12 State;

13 (4) Manufacture of gambling devices, including the

14 acquisition of essential parts therefor and the assembly

15 thereof, for transportation in interstate or foreign

16 commerce to any place outside this State when the

17 transportation is not prohibited by any applicable Federal

18 law;

19 (5) Raffles when conducted in accordance with the

20 Raffles Act;

21 (6) Gambling games conducted on riverboats, in

22 casinos, or at electronic gaming facilitieswhen

23 authorized by the Illinois ~~Riverboat~~ Gambling Act; and

24 (7) Video gaming terminal games at a licensed

25 establishment, licensed truck stop establishment, licensed

26 fraternal establishment, or licensed veterans

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1 establishment when conducted in accordance with the Video

2 Gaming Act.

3 (f) Sentence. Syndicated gambling is a Class 3 felony.

4 (Source: P.A. 96-34, eff. 7-13-09; 97-1108, eff. 1-1-13.)

5 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)

6 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is

7 any real estate, vehicle, boat or any other property whatsoever

8 used for the purposes of gambling other than gambling conducted

9 in the manner authorized by theIllinois ~~Riverboat~~ Gambling Act

10 or the Video Gaming Act. Any person who knowingly permits any

11 premises or property owned or occupied by him or under his

12 control to be used as a gambling place commits a Class A

13 misdemeanor. Each subsequent offense is a Class 4 felony. When

14 any premises is determined by the circuit court to be a

15 gambling place:

16 (a) Such premises is a public nuisance and may be proceeded

17 against as such, and

18 (b) All licenses, permits or certificates issued by the

19 State of Illinois or any subdivision or public agency thereof

20 authorizing the serving of food or liquor on such premises

21 shall be void; and no license, permit or certificate so

22 cancelled shall be reissued for such premises for a period of

23 60 days thereafter; nor shall any person convicted of keeping a

24 gambling place be reissued such license for one year from his

25 conviction and, after a second conviction of keeping a gambling

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1 place, any such person shall not be reissued such license, and

2 (c) Such premises of any person who knowingly permits

3 thereon a violation of any Section of this Article shall be

4 held liable for, and may be sold to pay any unsatisfied

5 judgment that may be recovered and any unsatisfied fine that

6 may be levied under any Section of this Article.

7 (Source: P.A. 96-34, eff. 7-13-09.)

8 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)

9 Sec. 28-5. Seizure of gambling devices and gambling funds.

10 (a) Every device designed for gambling which is incapable

11 of lawful use or every device used unlawfully for gambling

12 shall be considered a "gambling device", and shall be subject

13 to seizure, confiscation and destruction by the Department of

14 State Police or by any municipal, or other local authority,

15 within whose jurisdiction the same may be found. As used in

16 this Section, a "gambling device" includes any slot machine,

17 and includes any machine or device constructed for the

18 reception of money or other thing of value and so constructed

19 as to return, or to cause someone to return, on chance to the

20 player thereof money, property or a right to receive money or

21 property. With the exception of any device designed for

22 gambling which is incapable of lawful use, no gambling device

23 shall be forfeited or destroyed unless an individual with a

24 property interest in said device knows of the unlawful use of

25 the device.

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1 (b) Every gambling device shall be seized and forfeited to

2 the county wherein such seizure occurs. Any money or other

3 thing of value integrally related to acts of gambling shall be

4 seized and forfeited to the county wherein such seizure occurs.

5 (c) If, within 60 days after any seizure pursuant to

6 subparagraph (b) of this Section, a person having any property

7 interest in the seized property is charged with an offense, the

8 court which renders judgment upon such charge shall, within 30

9 days after such judgment, conduct a forfeiture hearing to

10 determine whether such property was a gambling device at the

11 time of seizure. Such hearing shall be commenced by a written

12 petition by the State, including material allegations of fact,

13 the name and address of every person determined by the State to

14 have any property interest in the seized property, a

15 representation that written notice of the date, time and place

16 of such hearing has been mailed to every such person by

17 certified mail at least 10 days before such date, and a request

18 for forfeiture. Every such person may appear as a party and

19 present evidence at such hearing. The quantum of proof required

20 shall be a preponderance of the evidence, and the burden of

21 proof shall be on the State. If the court determines that the

22 seized property was a gambling device at the time of seizure,

23 an order of forfeiture and disposition of the seized property

24 shall be entered: a gambling device shall be received by the

25 State's Attorney, who shall effect its destruction, except that

26 valuable parts thereof may be liquidated and the resultant

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1 money shall be deposited in the general fund of the county

2 wherein such seizure occurred; money and other things of value

3 shall be received by the State's Attorney and, upon

4 liquidation, shall be deposited in the general fund of the

5 county wherein such seizure occurred. However, in the event

6 that a defendant raises the defense that the seized slot

7 machine is an antique slot machine described in subparagraph

8 (b) (7) of Section 28-1 of this Code and therefore he is exempt

9 from the charge of a gambling activity participant, the seized

10 antique slot machine shall not be destroyed or otherwise

11 altered until a final determination is made by the Court as to

12 whether it is such an antique slot machine. Upon a final

13 determination by the Court of this question in favor of the

14 defendant, such slot machine shall be immediately returned to

15 the defendant. Such order of forfeiture and disposition shall,

16 for the purposes of appeal, be a final order and judgment in a

17 civil proceeding.

18 (d) If a seizure pursuant to subparagraph (b) of this

19 Section is not followed by a charge pursuant to subparagraph

20 (c) of this Section, or if the prosecution of such charge is

21 permanently terminated or indefinitely discontinued without

22 any judgment of conviction or acquittal (1) the State's

23 Attorney shall commence an in rem proceeding for the forfeiture

24 and destruction of a gambling device, or for the forfeiture and

25 deposit in the general fund of the county of any seized money

26 or other things of value, or both, in the circuit court and (2)

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1 any person having any property interest in such seized gambling

2 device, money or other thing of value may commence separate

3 civil proceedings in the manner provided by law.

4 (e) Any gambling device displayed for sale to a riverboat

5 gambling operation, casino gambling operation, or electronic

6 gaming facility or used to train occupational licensees of a

7 riverboat gambling operation, casino gambling operation, or

8 electronic gaming facility as authorized under the Illinois

9 ~~Riverboat~~Gambling Act is exempt from seizure under this

10 Section.

11 (f) Any gambling equipment, devices and supplies provided

12 by a licensed supplier in accordance with theIllinois

13 ~~Riverboat~~Gambling Act which are removed froma~~the~~ riverboat,

14 casino, or electronic gaming facilityfor repair are exempt

15 from seizure under this Section.

16 (Source: P.A. 87-826.)

17 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)

18 Sec. 28-7. Gambling contracts void.

19 (a) All promises, notes, bills, bonds, covenants,

20 contracts, agreements, judgments, mortgages, or other

21 securities or conveyances made, given, granted, drawn, or

22 entered into, or executed by any person whatsoever, where the

23 whole or any part of the consideration thereof is for any money

24 or thing of value, won or obtained in violation of any Section

25 of this Article are null and void.

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1 (b) Any obligation void under this Section may be set aside

2 and vacated by any court of competent jurisdiction, upon a

3 complaint filed for that purpose, by the person so granting,

4 giving, entering into, or executing the same, or by his

5 executors or administrators, or by any creditor, heir, legatee,

6 purchaser or other person interested therein; or if a judgment,

7 the same may be set aside on motion of any person stated above,

8 on due notice thereof given.

9 (c) No assignment of any obligation void under this Section

10 may in any manner affect the defense of the person giving,

11 granting, drawing, entering into or executing such obligation,

12 or the remedies of any person interested therein.

13 (d) This Section shall not prevent a licensed owner of a

14 riverboat gambling operation, casino gambling operation, or an

15 electronic gaming licensee under the Illinois Gambling Act and

16 the Illinois Horse Racing Act of 1975 from instituting a cause

17 of action to collect any amount due and owing under an

18 extension of credit to a~~riverboat~~ gambling patron as

19 authorized under Section 11.1 of the Illinois~~Riverboat~~

20 Gambling Act.

21 (Source: P.A. 87-826.)

22 Section 90-55. The Eminent Domain Act is amended by adding

23 Section 15-5-47 as follows:

24 (735 ILCS 30/15-5-47 new)

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1 Sec. 15-5-47. Eminent domain powers in new Acts. The

2 following provisions of law may include express grants of the

3 power to acquire property by condemnation or eminent domain:

4 Chicago Casino Development Authority Act; City of Chicago; for

5 the purposes of the Act.

6 Section 90-60. The Payday Loan Reform Act is amended by

7 changing Section 3-5 as follows:

8 (815 ILCS 122/3-5)

9 Sec. 3-5. Licensure.

10 (a) A license to make a payday loan shall state the

11 address, including city and state, at which the business is to

12 be conducted and shall state fully the name of the licensee.

13 The license shall be conspicuously posted in the place of

14 business of the licensee and shall not be transferable or

15 assignable.

16 (b) An application for a license shall be in writing and in

17 a form prescribed by the Secretary. The Secretary may not issue

18 a payday loan license unless and until the following findings

19 are made:

20 (1) that the financial responsibility, experience,

21 character, and general fitness of the applicant are such as

22 to command the confidence of the public and to warrant the

23 belief that the business will be operated lawfully and

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1 fairly and within the provisions and purposes of this Act;

2 and

3 (2) that the applicant has submitted such other

4 information as the Secretary may deem necessary.

5 (c) A license shall be issued for no longer than one year,

6 and no renewal of a license may be provided if a licensee has

7 substantially violated this Act and has not cured the violation

8 to the satisfaction of the Department.

9 (d) A licensee shall appoint, in writing, the Secretary as

10 attorney-in-fact upon whom all lawful process against the

11 licensee may be served with the same legal force and validity

12 as if served on the licensee. A copy of the written

13 appointment, duly certified, shall be filed in the office of

14 the Secretary, and a copy thereof certified by the Secretary

15 shall be sufficient evidence to subject a licensee to

16 jurisdiction in a court of law. This appointment shall remain

17 in effect while any liability remains outstanding in this State

18 against the licensee. When summons is served upon the Secretary

19 as attorney-in-fact for a licensee, the Secretary shall

20 immediately notify the licensee by registered mail, enclosing

21 the summons and specifying the hour and day of service.

22 (e) A licensee must pay an annual fee of $1,000. In

23 addition to the license fee, the reasonable expense of any

24 examination or hearing by the Secretary under any provisions of

25 this Act shall be borne by the licensee. If a licensee fails to

26 renew its license by December 31, its license shall

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1 automatically expire; however, the Secretary, in his or her

2 discretion, may reinstate an expired license upon:

3 (1) payment of the annual fee within 30 days of the

4 date of expiration; and

5 (2) proof of good cause for failure to renew.

6 (f) Not more than one place of business shall be maintained

7 under the same license, but the Secretary may issue more than

8 one license to the same licensee upon compliance with all the

9 provisions of this Act governing issuance of a single license.

10 The location, except those locations already in existence as of

11 June 1, 2005, may not be within one mile of a horse race track

12 subject to the Illinois Horse Racing Act of 1975, within one

13 mile of a facility at which gambling is conducted under the

14 Illinois~~Riverboat~~ Gambling Act, within one mile of the

15 location at which a riverboat subject to theIllinois ~~Riverboat~~

16 Gambling Act docks, or within one mile of any State of Illinois

17 or United States military base or naval installation.

18 (g) No licensee shall conduct the business of making loans

19 under this Act within any office, suite, room, or place of

20 business in which (1) any loans are offered or made under the

21 Consumer Installment Loan Act other than title secured loans as

22 defined in subsection (a) of Section 15 of the Consumer

23 Installment Loan Act and governed by Title 38, Section 110.330

24 of the Illinois Administrative Code or (2) any other business

25 is solicited or engaged in unless the other business is

26 licensed by the Department or, in the opinion of the Secretary,

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1 the other business would not be contrary to the best interests

2 of consumers and is authorized by the Secretary in writing.

3 (g-5) Notwithstanding subsection (g) of this Section, a

4 licensee may obtain a license under the Consumer Installment

5 Loan Act (CILA) for the exclusive purpose and use of making

6 title secured loans, as defined in subsection (a) of Section 15

7 of CILA and governed by Title 38, Section 110.300 of the

8 Illinois Administrative Code. A licensee may continue to

9 service Consumer Installment Loan Act loans that were

10 outstanding as of the effective date of this amendatory Act of

11 the 96th General Assembly.

12 (h) The Secretary shall maintain a list of licensees that

13 shall be available to interested consumers and lenders and the

14 public. The Secretary shall maintain a toll-free number whereby

15 consumers may obtain information about licensees. The

16 Secretary shall also establish a complaint process under which

17 an aggrieved consumer may file a complaint against a licensee

18 or non-licensee who violates any provision of this Act.

19 (Source: P.A. 96-936, eff. 3-21-11.)

20 Section 90-65. The Travel Promotion Consumer Protection

21 Act is amended by changing Section 2 as follows:

22 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)

23 Sec. 2. Definitions.

24 (a) "Travel promoter" means a person, including a tour

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1 operator, who sells, provides, furnishes, contracts for,

2 arranges or advertises that he or she will arrange wholesale or

3 retail transportation by air, land, sea or navigable stream,

4 either separately or in conjunction with other services.

5 "Travel promoter" does not include (1) an air carrier; (2) a

6 sea carrier; (3) an officially appointed agent of an air

7 carrier who is a member in good standing of the Airline

8 Reporting Corporation; (4) a travel promoter who has in force

9 $1,000,000 or more of liability insurance coverage for

10 professional errors and omissions and a surety bond or

11 equivalent surety in the amount of $100,000 or more for the

12 benefit of consumers in the event of a bankruptcy on the part

13 of the travel promoter; or (5) a riverboat subject to

14 regulation under theIllinois ~~Riverboat~~ Gambling Act.

15 (b) "Advertise" means to make any representation in the

16 solicitation of passengers and includes communication with

17 other members of the same partnership, corporation, joint

18 venture, association, organization, group or other entity.

19 (c) "Passenger" means a person on whose behalf money or

20 other consideration has been given or is to be given to

21 another, including another member of the same partnership,

22 corporation, joint venture, association, organization, group

23 or other entity, for travel.

24 (d) "Ticket or voucher" means a writing or combination of

25 writings which is itself good and sufficient to obtain

26 transportation and other services for which the passenger has

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1 contracted.

2 (Source: P.A. 91-357, eff. 7-29-99.)

3 (30 ILCS 105/5.490 rep.)

4 Section 90-70. The State Finance Act is amended by

5 repealing Section 5.490.

6 (230 ILCS 5/54 rep.)

7 Section 90-75. The Illinois Horse Racing Act of 1975 is

8 amended by repealing Section 54.

9 ARTICLE 99.

10 Section 99-97. Severability. The provisions of this Act are

11 severable under Section 1.31 of the Statute on Statutes.

12 Section 99-99. Effective date. This Act takes effect upon

13 becoming law.".