SB1739 Engrossed LRB098 10559 AMC 40804 b
1		AN ACT concerning gaming.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		ARTICLE 1.
5		Section 1-1. Short title. This Article may be cited as the
6		Chicago Casino Development Authority Act. References in this
7		Article to "this Act" mean this Article.
8		Section 1-2. Legislative intent.
9		(a) This Act is intended to benefit the people of the City
10		of Chicago and the State of Illinois by assisting economic
11		development and promoting tourism and by increasing the amount
12		of revenues available to the City and the State to assist and
13		support education.
14		(b) While authorization of casino gambling in Chicago will
15		enhance investment, development, and tourism in Illinois, it is
16		recognized that it will do so successfully only if public
17		confidence and trust in the credibility and integrity of the
18		gambling operations and the regulatory process is maintained.
19		Therefore, the provisions of this Act are designed to allow the
20		Illinois Gaming Board to strictly regulate the facilities,
21		persons, associations, and practices related to gambling
22		operations pursuant to the police powers of the State,

SB1739 Engrossed - 2 - LRB098 10559 AMC 40804 b
1		including comprehensive law enforcement supervision.
2		Consistent with the Gaming Board's authority, the Gaming Board
3		alone shall regulate any Chicago casino, just as it now
4		regulates every other casino in Illinois.
5		Section 1-5. Definitions. As used in this Act:
6		"Authority" means the Chicago Casino Development Authority
7		created by this Act.
8		"Casino" means one temporary land-based or water-based
9		facility and one permanent land-based or water-based facility
10		and airport gaming locations pursuant to Section 1-67 of this
11		Act at which lawful gambling is authorized and licensed as
12		provided in the Illinois Gambling Act.
13		"Casino Board" means the board appointed pursuant to this
14		Act to govern and control the Authority.
15		"Casino management contract" means a legally binding
16		agreement between the Authority and a casino operator licensee
17		to operate or manage a casino.
18		"Casino operator licensee" means any person or entity
19		selected by the Authority and approved and licensed by the
20		Gaming Board to manage and operate a casino within the City of
21		Chicago pursuant to a casino management contract.
22		"City" means the City of Chicago.
23		"Entity" means a corporation, joint venture, partnership,
24		limited liability company, trust, or unincorporated
25		association.

SB1739 Engrossed - 3 - LRB098 10559 AMC 40804 b
1		"Executive director" means the person appointed by the
2		Casino Board to oversee the daily operations of the Authority.
3		"Gaming Board" means the Illinois Gaming Board created by
4		the Illinois Gambling Act.
5		"Mayor" means the Mayor of the City.
6		Section 1-12. Creation of the Authority. There is hereby
7		created a political subdivision, unit of local government with
8		only the powers authorized by law, body politic, and municipal
9		corporation, by the name and style of the Chicago Casino
10		Development Authority.
11		Section 1-13. Duties of the Authority. It shall be the duty
12		of the Authority, as an owners licensee under the Illinois
13		Gambling Act, to promote and maintain a casino in the City. The
14		Authority shall own, acquire, construct, lease, equip, and
15		maintain grounds, buildings, and facilities for that purpose.
16		However, the Authority shall contract with a casino operator
17		licensee to manage and operate the casino and in no event shall
18		the Authority or City manage or operate the casino. The
19		Authority may contract pursuant to the procedures set forth in
20		Section 1-115 with other third parties in order to fulfill its
21		purpose. The Authority is responsible for the payment of any
22		fees required of a casino operator under subsection (a) of
23		Section 7.8 of the Illinois Gambling Act if the casino operator
24		licensee is late in paying any such fees. The Authority is

SB1739 Engrossed - 4 - LRB098 10559 AMC 40804 b
1		granted all rights and powers necessary to perform such duties.
2		Subject to the provisions of this Act, the Authority and casino
3		operator licensee are subject to the Illinois Gambling Act and
4		all of the rules of the Gaming Board, which shall be applied to
5		the Authority and the casino operator licensee in a manner
6		consistent with that of other owners licensees under the
7		Illinois Gambling Act. Nothing in this Act shall confer
8		regulatory authority on the Chicago Casino Development
9		Authority. The Illinois Gaming Board shall have exclusive
10		regulatory authority over all gambling operations governed by
11		this Act.
12		Section 1-15. Casino Board.
13		(a) The governing and administrative powers of the
14		Authority shall be vested in a body known as the Chicago Casino
15		Development Board. The Casino Board shall consist of 5 members
16		appointed by the Mayor. One of these members shall be
17		designated by the Mayor to serve as chairperson. All of the
18		members appointed by the Mayor shall be residents of the City.
19		Each Casino Board appointee shall be subject to a
20		preliminary background investigation completed by the Gaming
21		Board within 30 days after the appointee's submission of his or
22		her application to the Gaming Board. If the Gaming Board
23		determines that there is a substantial likelihood that it will
24		not find the appointee to be suitable to serve on the Casino
25		Board (applying the same standards for suitability to the

SB1739 Engrossed - 5 - LRB098 10559 AMC 40804 b
1		appointee as the Gaming Board would apply to an owners licensee
2		key person under the Gaming Board's adopted rules), then the
3		Gaming Board shall provide a written notice of such
4		determination to the appointee and the Corporation Counsel of
5		the City. The Mayor may then appoint a new candidate. If no
6		such notice is delivered with respect to a particular
7		appointee, then commencing on the 31st day following the date
8		of the appointee's submission of his or her application to the
9		Gaming Board, the appointee shall be deemed an acting member of
10		the Casino Board and shall participate as a Casino Board
11		member.
12		Each appointee shall be subject to a full background
13		investigation and final approval by the Gaming Board prior to
14		the opening of the casino. The Gaming Board shall complete its
15		full background investigation of the Casino Board appointee
16		within 3 months after the date of the appointee's submission of
17		his or her application to the Gaming Board. If the Gaming Board
18		does not complete its background investigation within the
19		3-month period, then the Gaming Board shall give a written
20		explanation to the appointee, as well as the Mayor, the
21		Governor, the President of the Senate, and the Speaker of the
22		House of Representatives, as to why it has not reached a final
23		determination and set forth a reasonable time when such
24		determination shall be made.
25		(b) Casino Board members shall receive $300 for each day
26		the Authority meets and shall be entitled to reimbursement of

SB1739 Engrossed - 6 - LRB098 10559 AMC 40804 b
1		reasonable expenses incurred in the performance of their
2		official duties. A Casino Board member who serves in the office
3		of secretary-treasurer may also receive compensation for
4		services provided as that officer.
5		Section 1-20. Terms of appointments; resignation and
6		removal.
7		(a) The Mayor shall appoint 2 members of the Casino Board
8		for an initial term expiring July 1 of the year following final
9		approval by the Gaming Board, 2 members for an initial term
10		expiring July 1 three years following final approval by the
11		Gaming Board, and one member for an initial term expiring July
12		1 five years following final approval by the Gaming Board.
13		(b) All successors shall be appointed by the Mayor to hold
14		office for a term of 5 years from the first day of July of the
15		year in which they are appointed, except in the case of an
16		appointment to fill a vacancy. Each member, including the
17		chairperson, shall hold office until the expiration of his or
18		her term and until his or her successor is appointed and
19		qualified. Nothing shall preclude a member from serving
20		consecutive terms. Any member may resign from office, to take
21		effect when a successor has been appointed and qualified. A
22		vacancy in office shall occur in the case of a member's death
23		or indictment, conviction, or plea of guilty to a felony. A
24		vacancy shall be filled for the unexpired term by the Mayor
25		subject to the approval of the Gaming Board as provided in this

SB1739 Engrossed - 7 - LRB098 10559 AMC 40804 b
1		Section.
2		(c) Members of the Casino Board shall serve at the pleasure
3		of the Mayor. The Mayor or the Gaming Board may remove any
4		member of the Casino Board upon a finding of incompetence,
5		neglect of duty, or misfeasance or malfeasance in office or for
6		a violation of this Act. The Gaming Board may remove any member
7		of the Casino Board for any violation of the Illinois Gambling
8		Act or the rules and regulations of the Gaming Board.
9		(d) No member of the Casino Board shall engage in any
10		political activity. For the purpose of this Section, "political
11		activity" means any activity in support of or in connection
12		with any campaign for federal, State, or local elective office
13		or any political organization, but does not include activities
14		(i) relating to the support or opposition of any executive,
15		legislative, or administrative action, as those terms are
16		defined in Section 2 of the Lobbyist Registration Act, (ii)
17		relating to collective bargaining, or (iii) that are otherwise
18		in furtherance of the person's official duties or governmental
19		and public service functions.
20		Section 1-25. Organization of Casino Board; meetings.
21		After appointment by the Mayor, the Casino Board shall organize
22		for the transaction of business, provided that the Casino Board
23		shall not take any formal action until after the Gaming Board
24		has completed its preliminary background investigation of at
25		least a quorum of the Casino Board as provided in subsection

SB1739 Engrossed - 8 - LRB098 10559 AMC 40804 b
1		(a) of Section 1-15. The Casino Board shall prescribe the time
2		and place for meetings, the manner in which special meetings
3		may be called, and the notice that must be given to members.
4		All actions and meetings of the Casino Board shall be subject
5		to the provisions of the Open Meetings Act. Three members of
6		the Casino Board shall constitute a quorum. All substantive
7		action of the Casino Board shall be by resolution with an
8		affirmative vote of a majority of the members.
9		Section 1-30. Executive director; officers.
10		(a) The Casino Board shall appoint an executive director,
11		who shall be the chief executive officer of the Authority.
12		The executive director shall be subject to a preliminary
13		background investigation to be completed by the Gaming Board
14		within 30 days after the executive director's submission of his
15		or her application to the Gaming Board. If the Gaming Board
16		determines that there is a substantial likelihood that it will
17		not find the executive director to be suitable to serve in that
18		position (applying the same standards for suitability as the
19		Gaming Board would apply to an owners licensee key person under
20		the Gaming Board's adopted rules), then the Gaming Board shall
21		provide a written notice of such determination to the appointee
22		and the Corporation Counsel of the City. The Casino Board may
23		then appoint a new executive director. If no such notice is
24		delivered, then commencing on the 31st day following the date
25		of the executive director's submission of his or her

SB1739 Engrossed - 9 - LRB098 10559 AMC 40804 b
1		application to the Gaming Board, the executive director shall
2		commence all duties as the acting executive director of the
3		Authority.
4		The executive director shall be subject to a full
5		background investigation and final approval by the Gaming Board
6		prior to the opening of the casino. The Gaming Board shall
7		complete its full background investigation of the executive
8		director within 3 months after the date of the executive
9		director's submission of his or her application to the Gaming
10		Board. If the Gaming Board does not complete its background
11		investigation within the 3-month period, then the Gaming Board
12		shall give a written explanation to the appointee, as well as
13		the Mayor, the Governor, the President of the Senate, and the
14		Speaker of the House of Representatives, as to why it has not
15		reached a final determination and set forth a reasonable time
16		when such determination shall be made.
17		(b) The Casino Board shall fix the compensation of the
18		executive director. Subject to the general control of the
19		Casino Board, the executive director shall be responsible for
20		the management of the business, properties, and employees of
21		the Authority. The executive director shall direct the
22		enforcement of all resolutions, rules, and regulations of the
23		Casino Board, and shall perform such other duties as may be
24		prescribed from time to time by the Casino Board. All employees
25		and independent contractors, consultants, engineers,
26		architects, accountants, attorneys, financial experts,

SB1739 Engrossed - 10 - LRB098 10559 AMC 40804 b
1		construction experts and personnel, superintendents, managers,
2		and other personnel appointed or employed pursuant to this Act
3		shall report to the executive director. In addition to any
4		other duties set forth in this Act, the executive director
5		shall do or shall delegate to an employee or agent of the
6		Authority to do all of the following:
7		(1) Direct and supervise the administrative affairs
8		and activities of the Authority in accordance with its
9		rules, regulations, and policies.
10		(2) Attend meetings of the Casino Board.
11		(3) Keep minutes of all proceedings of the Casino
12		Board.
13		(4) Approve all accounts for salaries, per diem
14		payments, and allowable expenses of the Casino Board and
15		its employees and consultants.
16		(5) Report and make recommendations to the Casino Board
17		concerning the terms and conditions of any casino
18		management contract.
19		(6) Perform any other duty that the Casino Board
20		requires for carrying out the provisions of this Act.
21		(7) Devote his or her full time to the duties of the
22		office and not hold any other office or employment.
23		(c) The Casino Board may select a secretary-treasurer and
24		other officers to hold office at the pleasure of the Casino
25		Board. The Casino Board shall fix the duties of such officers.

SB1739 Engrossed - 11 - LRB098 10559 AMC 40804 b
1		Section 1-31. General rights and powers of the Authority.
2		(a) In addition to the duties and powers set forth in this
3		Act, the Authority shall have the following rights and powers:
4		(1) Adopt and alter an official seal.
5		(2) Establish and change its fiscal year.
6		(3) Sue and be sued, plead and be impleaded, all in its
7		own name, and agree to binding arbitration of any dispute
8		to which it is a party.
9		(4) Adopt, amend, and repeal bylaws, rules, and
10		regulations consistent with the furtherance of the powers
11		and duties provided for.
12		(5) Maintain its principal office within the City and
13		such other offices as the Casino Board may designate.
14		(6) Select locations in the City for a temporary and a
15		permanent casino.
16		(7) Subject to the bidding procedures of Section 1-115
17		of this Act, retain or employ, either as regular employees
18		or independent contractors, consultants, engineers,
19		architects, accountants, attorneys, financial experts,
20		construction experts and personnel, superintendents,
21		managers and other professional personnel, and such other
22		personnel as may be necessary in the judgment of the Casino
23		Board, and fix their compensation; however, employees of
24		the Authority shall be hired pursuant to and in accordance
25		with the rules and policies the Authority may adopt.
26		(8) Pursuant to Section 1-115 of this Act, own,

SB1739 Engrossed - 12 - LRB098 10559 AMC 40804 b
1		acquire, construct, equip, lease, operate, manage, and
2		maintain grounds, buildings, and facilities to carry out
3		its corporate purposes and duties.
4		(9) Pursuant to Section 1-115, and subject to the
5		oversight, review, and approval of the Gaming Board, enter
6		into, revoke, and modify contracts in accordance with the
7		rules of the Gaming Board as consistently applied to all
8		owners licensees under the Illinois Gambling Act, provided
9		that the Authority may enter into contracts for the design,
10		construction, and outfitting of a temporary casino prior to
11		the Gaming Board's final approval of the Authority's
12		executive director and the members of the Casino Board and
13		prior to the Gaming Board's issuance of the Authority's
14		owners license. Provided further that the entities
15		selected by the Authority for the design, construction, and
16		outfitting of the temporary casino shall be subject to a
17		preliminary background investigation to be completed by
18		the Gaming Board within 30 days after the Gaming Board is
19		provided the identities of the entities. If the Gaming
20		Board determines that there is a substantial likelihood
21		that the entities are not suitable or acceptable to perform
22		their respective functions, then the Gaming Board shall
23		immediately provide notice of that determination to the
24		Authority. If no such notice is delivered, then, commencing
25		on the 31st day following the date on which the information
26		identifying such entities is provided to the Gaming Board,

SB1739 Engrossed - 13 - LRB098 10559 AMC 40804 b
1		such entities shall be permitted to commence the services
2		contemplated for the design, construction, and outfitting
3		of the temporary casino. In no event, however, shall the
4		Authority open a casino until after the Gaming Board has
5		finally approved the Authority's executive director and
6		the members of the Casino Board and the Gaming Board has
7		issued the Authority's owners license and the casino
8		operator's casino operator license.
9		(10) Enter into a casino management contract subject to
10		the provisions of Section 1-45 of this Act.
11		(11) Negotiate and enter into intergovernmental
12		agreements with the State and its agencies, the City, and
13		other units of local government, in furtherance of the
14		powers and duties of the Casino Board.
15		(12) Receive and disburse funds for its own corporate
16		purposes or as otherwise specified in this Act.
17		(13) Borrow money from any source, public or private,
18		for any corporate purpose, including, without limitation,
19		working capital for its operations, reserve funds, or
20		payment of interest, and to mortgage, pledge, or otherwise
21		encumber the property or funds of the Authority and to
22		contract with or engage the services of any person in
23		connection with any financing, including financial
24		institutions, issuers of letters of credit, or insurers and
25		enter into reimbursement agreements with this person or
26		entity which may be secured as if money were borrowed from

SB1739 Engrossed - 14 - LRB098 10559 AMC 40804 b
1		the person or entity.
2		(14) Issue bonds as provided for under this Act.
3		(15) Receive and accept from any source, private or
4		public, contributions, gifts, or grants of money or
5		property to the Authority.
6		(16) Provide for the insurance of any property,
7		operations, officers, members, agents, or employees of the
8		Authority against any risk or hazard, to self-insure or
9		participate in joint self-insurance pools or entities to
10		insure against such risk or hazard, and to provide for the
11		indemnification of its officers, members, employees,
12		contractors, or agents against any and all risks.
13		(17) Exercise all the corporate powers granted
14		Illinois corporations under the Business Corporation Act
15		of 1983, except to the extent that powers are inconsistent
16		with those of a body politic and municipal corporation.
17		(18) Do all things necessary or convenient to carry out
18		the powers granted by this Act.
19		(b) The Casino Board shall comply with all applicable legal
20		requirements imposed on other owners licensees to conduct all
21		background investigations required under the Illinois Gambling
22		Act and the rules of the Gaming Board. This requirement shall
23		also extend to senior legal, financial, and administrative
24		staff of the Authority.
25		Section 1-32. Ethical conduct.

SB1739 Engrossed - 15 - LRB098 10559 AMC 40804 b
1		(a) Casino Board members and employees of the Authority
2		must carry out their duties and responsibilities in such a
3		manner as to promote and preserve public trust and confidence
4		in the integrity and conduct of gaming.
5		(b) Except as may be required in the conduct of official
6		duties, Casino Board members and employees of the Authority
7		shall not engage in gambling on any riverboat, in any casino,
8		or in an electronic gaming facility licensed by the Illinois
9		Gaming Board or engage in legalized gambling in any
10		establishment identified by Gaming Board action that, in the
11		judgment of the Gaming Board, could represent a potential for a
12		conflict of interest.
13		(c) A Casino Board member or employee of the Authority
14		shall not use or attempt to use his or her official position to
15		secure or attempt to secure any privilege, advantage, favor, or
16		influence for himself or herself or others.
17		(d) Casino Board members and employees of the Authority
18		shall not hold or pursue employment, office, position,
19		business, or occupation that may conflict with his or her
20		official duties. Employees may engage in other gainful
21		employment so long as that employment does not interfere or
22		conflict with their duties. Such employment must be disclosed
23		to the executive director and approved by the Casino Board.
24		(e) Casino Board members, employees of the Authority, and
25		elected officials and employees of the City may not engage in
26		employment, communications, or any activity identified by the

SB1739 Engrossed - 16 - LRB098 10559 AMC 40804 b
1		Casino Board or Gaming Board that, in the judgment of either
2		entity, could represent the potential for or the appearance of
3		a conflict of interest.
4		(f) Casino Board members, employees of the Authority, and
5		elected officials and employees of the City may not have a
6		financial interest, directly or indirectly, in his or her own
7		name or in the name of any other person, partnership,
8		association, trust, corporation, or other entity in any
9		contract or subcontract for the performance of any work for the
10		Authority. This prohibition shall extend to the holding or
11		acquisition of an interest in any entity identified by the
12		Casino Board or the Gaming Board that, in the judgment of
13		either entity, could represent the potential for or the
14		appearance of a financial interest. The holding or acquisition
15		of an interest in such entities through an indirect means, such
16		as through a mutual fund, shall not be prohibited, except that
17		the Gaming Board may identify specific investments or funds
18		that, in its judgment, are so influenced by gaming holdings as
19		to represent the potential for or the appearance of a conflict
20		of interest.
21		(g) Casino Board members, employees of the Authority, and
22		elected officials and employees of the City may not accept any
23		gift, gratuity, service, compensation, travel, lodging, or
24		thing of value, with the exception of unsolicited items of an
25		incidental nature, from any person, corporation, or entity
26		doing business with the Authority.

SB1739 Engrossed - 17 - LRB098 10559 AMC 40804 b
1		(h) No Casino Board member, employee of the Authority, or
2		elected official or employee of the City may, during employment
3		or within a period of 2 years immediately after termination of
4		employment, knowingly accept employment or receive
5		compensation or fees for services from a person or entity, or
6		its parent or affiliate, that has engaged in business with the
7		Authority that resulted in contracts with an aggregate value of
8		at least $25,000 or if that Casino Board member or employee has
9		made a decision that directly applied to the person or entity,
10		or its parent or affiliate.
11		(i) A spouse, child, or parent of a Casino Board member,
12		employee of the Authority, or elected official or employee of
13		the City may not have a financial interest, directly or
14		indirectly, in his or her own name or in the name of any other
15		person, partnership, association, trust, corporation, or other
16		entity in any contract or subcontract for the performance of
17		any work for the Authority. This prohibition shall extend to
18		the holding or acquisition of an interest in any entity
19		identified by the Casino Board or Gaming Board that, in the
20		judgment of either entity, could represent the potential for or
21		the appearance of a conflict of interest. The holding or
22		acquisition of an interest in such entities through an indirect
23		means, such as through a mutual fund, shall not be prohibited,
24		except that the Gaming Board may identify specific investments
25		or funds that, in its judgment, are so influenced by gaming
26		holdings as to represent the potential for or the appearance of

SB1739 Engrossed - 18 - LRB098 10559 AMC 40804 b
1		a conflict of interest.
2		(j) A spouse, child, or parent of a Casino Board member,
3		employee of the Authority, or elected official or employee of
4		the City may not accept any gift, gratuity, service,
5		compensation, travel, lodging, or thing of value, with the
6		exception of unsolicited items of an incidental nature, from
7		any person, corporation, or entity doing business with the
8		Authority.
9		(k) A spouse, child, or parent of a Casino Board member,
10		employee of the Authority, or elected official or employee of
11		the City may not, while the person is a Board member or
12		employee of the spouse or within a period of 2 years
13		immediately after termination of employment, knowingly accept
14		employment or receive compensation or fees for services from a
15		person or entity, or its parent or affiliate, that has engaged
16		in business with the Authority that resulted in contracts with
17		an aggregate value of at least $25,000 or if that Casino Board
18		member, employee, or elected official or employee of the City
19		has made a decision that directly applied to the person or
20		entity, or its parent or affiliate.
21		(l) No Casino Board member, employee of the Authority, or
22		elected official or employee of the City may attempt, in any
23		way, to influence any person or entity doing business with the
24		Authority or any officer, agent, or employee thereof to hire or
25		contract with any person or entity for any compensated work.
26		(m) No Casino Board member, employee of the Authority, or

SB1739 Engrossed - 19 - LRB098 10559 AMC 40804 b
1		elected official or employee of the City shall use or attempt
2		to use his or her official position to secure, or attempt to
3		secure, any privilege, advantage, favor, or influence for
4		himself or herself or others. No Casino Board member, employee
5		of the Authority, or elected official or employee of the City
6		shall, within one year immediately preceding appointment by the
7		Mayor or employment, have been employed or received
8		compensation or fees for services from a person or entity, or
9		its parent or affiliate, that has engaged in business with the
10		Casino Board, a licensee under this Act, or a licensee under
11		the Illinois Gambling Act.
12		(n) Any communication between an elected official of the
13		City and any applicant for or party to a casino management
14		contract with the Authority, or an officer, director, or
15		employee thereof, concerning any matter relating in any way to
16		gaming or the Authority shall be disclosed to the Casino Board
17		and the Gaming Board. Such disclosure shall be in writing by
18		the official within 30 days after the communication and shall
19		be filed with the Casino Board and the Gaming Board. Disclosure
20		must consist of the date of the communication, the identity and
21		job title of the person with whom the communication was made, a
22		brief summary of the communication, the action requested or
23		recommended, all responses made, the identity and job title of
24		the person making the response, and any other pertinent
25		information. In addition, if the communication is written or
26		digital, then the entire communication shall be disclosed.

SB1739 Engrossed - 20 - LRB098 10559 AMC 40804 b
1		Public disclosure of the written summary provided to the
2		Casino Board and the Gaming Board shall be subject to the
3		exemptions provided under Section 7 of the Freedom of
4		Information Act.
5		This subsection (n) shall not apply to communications
6		regarding traffic, law enforcement, security, environmental
7		issues, City services, transportation, or other routine
8		matters concerning the ordinary operations of the casino.
9		(o) For purposes of this Section:
10		"Ordinary operations" means operations relating to the
11		casino facility other than the conduct of gambling activities.
12		"Routine matters" includes the application for, issuance,
13		renewal, and other processes associated with City permits and
14		licenses.
15		"Employee of the City" means only those employees of the
16		City who provide services to the Authority or otherwise
17		influence the decisions of the Authority or the Casino Board.
18		(p) Any Casino Board member or employee of the Authority
19		who violates any provision of this Section is guilty of a Class
20		4 felony.
21		Section 1-45. Casino management contracts.
22		(a) In accordance with all applicable procurement laws and
23		rules, the Casino Board shall develop and administer a
24		competitive sealed bidding process for the selection of a
25		potential casino operator licensee to develop or operate a

SB1739 Engrossed - 21 - LRB098 10559 AMC 40804 b
1		casino within the City. The Casino Board shall issue one or
2		more requests for proposals. The Casino Board may establish
3		minimum financial and investment requirements to determine the
4		eligibility of persons to respond to the Casino Board's
5		requests for proposals, and may establish and consider such
6		other criteria as it deems appropriate. The Casino Board may
7		impose a reasonable fee upon persons who respond to requests
8		for proposals, in order to reimburse the Casino Board for its
9		costs in preparing and issuing the requests and reviewing the
10		proposals. At least 30 days prior to the commencement of the
11		competitive bidding process, the Gaming Board shall be given an
12		opportunity to review the competitive bidding process
13		established by the Casino Board. During the competitive bidding
14		process, the Casino Board shall keep the Gaming Board apprised
15		of the process and the responses received in connection with
16		the Casino Board's requests for proposals.
17		(b) Within 5 business days after the time limit for
18		submitting bids and proposals has passed, the Casino Board
19		shall make all bids and proposals public, provided, however,
20		the Casino Board shall not be required to disclose any
21		information which would be exempt from disclosure under Section
22		7 of the Freedom of Information Act. Thereafter, the Casino
23		Board shall evaluate the responses to its requests for
24		proposals and the ability of all persons or entities responding
25		to its requests for proposals to meet the requirements of this
26		Act and any relevant provisions of the Illinois Gambling Act

SB1739 Engrossed - 22 - LRB098 10559 AMC 40804 b
1		and to undertake and perform the obligations set forth in its
2		requests for proposals.
3		(c) After reviewing proposals and selecting a successful
4		bidder, the Casino Board shall enter into a casino management
5		contract with the successful bidder authorizing the operation
6		of a casino. The casino operator shall be subject to a
7		background investigation and approval by the Gaming Board. The
8		Gaming Board shall complete its background investigation and
9		approval of the casino operator within 6 months after the date
10		that the proposed casino operator submits its application to
11		the Gaming Board. If the Gaming Board does not complete its
12		background investigation and approval within the 6-month
13		period, then the Gaming Board shall give a written explanation
14		to the proposed casino operator and the chief legal officer of
15		the Authority as to why it has not reached a final
16		determination and when it reasonably expects to make a final
17		determination. Validity of the casino management contract is
18		contingent upon the issuance of a casino operator license to
19		the successful bidder. If the Gaming Board grants a casino
20		operator license, the Casino Board shall transmit a copy of the
21		executed casino management contract to the Gaming Board.
22		(d) After (1) the Authority has been issued an owners
23		license, (2) the Gaming Board has issued a casino operator
24		license, and (3) the Gaming Board has approved the members of
25		the Casino Board, the Authority may conduct gaming operations
26		at a temporary facility, subject to the adopted rules of the

SB1739 Engrossed - 23 - LRB098 10559 AMC 40804 b
1		Gaming Board, for no longer than 24 months after gaming
2		operations begin. The Gaming Board may, after holding a public
3		hearing, grant an extension so long as a permanent facility is
4		not operational and the Authority is working in good faith to
5		complete the permanent facility. The Gaming Board may grant
6		additional extensions following further public hearings. Each
7		extension may be for a period of no longer than 6 months.
8		(e) Fifty percent of any initial consideration received by
9		the Authority that was paid as an inducement pursuant to a bid
10		for a casino management contract or an executed casino
11		management contract must be transmitted to the State and
12		deposited into the Gaming Facilities Fee Revenue Fund. The
13		initial consideration shall not include (1) any amounts paid to
14		the Authority as reimbursement for its costs in preparing or
15		issuing the requests for proposals and reviewing the proposals
16		or (2) any amounts loaned to the Authority or paid by an entity
17		on behalf of the Authority for the design, construction,
18		outfitting, or equipping of the casino, pre-opening expenses,
19		bank roll or similar expenses required to open and operate the
20		casino, or any license or per position fees imposed pursuant to
21		the Illinois Gambling Act or any other financial obligation of
22		the Authority.
23		Section 1-47. Freedom of Information Act. The Authority
24		shall be a public body as defined in the Freedom of Information
25		Act and shall be subject to the provisions of the Freedom of

SB1739 Engrossed - 24 - LRB098 10559 AMC 40804 b
1		Information Act.
2		Section 1-50. Transfer of funds. The revenues received by
3		the Authority (other than amounts required to be paid pursuant
4		to the Illinois Gambling Act and amounts required to pay the
5		operating expenses of the Authority, to pay amounts due the
6		casino operator licensee pursuant to a casino management
7		contract, to repay any borrowing of the Authority made pursuant
8		to Section 1-31, to pay debt service on any bonds issued under
9		Section 1-75, and to pay any expenses in connection with the
10		issuance of such bonds pursuant to Section 1-75 or derivative
11		products pursuant to Section 1-85) shall be transferred to the
12		City by the Authority. Moneys transferred to the City pursuant
13		to this Section shall be expended or obligated by the City for
14		the construction, maintenance, and modernization of schools.
15		Section 1-60. Auditor General.
16		(a) Prior to the issuance of bonds under this Act, the
17		Authority shall submit to the Auditor General a certification
18		that:
19		(1) it is legally authorized to issue bonds;
20		(2) scheduled annual payments of principal and
21		interest on the bonds to be issued meet the requirements of
22		Section 1-75 of this Act;
23		(3) no bond shall mature later than 30 years; and
24		(4) after payment of costs of issuance and necessary

SB1739 Engrossed - 25 - LRB098 10559 AMC 40804 b
1		deposits to funds and accounts established with respect to
2		debt service on the bonds, the net bond proceeds (exclusive
3		of any proceeds to be used to refund outstanding bonds)
4		will be used only for the purposes set forth in this Act.
5		The Authority also shall submit to the Auditor General its
6		projections on revenues to be generated and pledged to
7		repayment of the bonds as scheduled and such other information
8		as the Auditor General may reasonably request.
9		The Auditor General shall examine the certifications and
10		information submitted and submit a report to the Authority and
11		the Gaming Board indicating whether the required
12		certifications, projections, and other information have been
13		submitted by the Authority and whether the assumptions
14		underlying the projections are not unreasonable in the
15		aggregate. The Auditor General shall submit the report no later
16		than 60 days after receiving the information required to be
17		submitted by the Authority.
18		The Auditor General shall submit a bill to the Authority
19		for costs associated with the examinations and report required
20		under this Section. The Authority shall reimburse in a timely
21		manner.
22		(b) The Authority shall enter into an intergovernmental
23		agreement with the Auditor General authorizing the Auditor
24		General to, every 2 years, (i) review the financial audit of
25		the Authority performed by the Authority's certified public
26		accountants, (ii) perform a management audit of the Authority,

SB1739 Engrossed - 26 - LRB098 10559 AMC 40804 b
1		and (iii) perform a management audit of the casino operator
2		licensee. The Auditor General shall provide the Authority and
3		the General Assembly with the audits and shall post on his or
4		her Internet website such portions of the audit or other
5		financial information as generally would be made publicly
6		available for other owners licensees under the Illinois
7		Gambling Act. The Auditor General shall submit a bill to the
8		Authority for costs associated with the review and the audit
9		required under this Section, which costs shall not exceed
10		$100,000, and the Authority shall reimburse the Auditor General
11		for such costs in a timely manner.
12		Section 1-62. Advisory committee. An Advisory Committee is
13		established to monitor, review, and report on (1) the
14		Authority's utilization of minority-owned business enterprises
15		and female-owned business enterprises, (2) employment of
16		females, and (3) employment of minorities with regard to the
17		development and construction of the casino as authorized under
18		Section 7 of the Illinois Gambling Act. The Authority shall
19		work with the Advisory Committee in accumulating necessary
20		information for the Committee to submit reports, as necessary,
21		to the General Assembly and to the City.
22		The Committee shall consist of 9 members as provided in
23		this Section. Five members shall be selected by the Governor
24		and 4 members shall be selected by the Mayor. The Governor and
25		Mayor shall each appoint at least one current member of the

SB1739 Engrossed - 27 - LRB098 10559 AMC 40804 b
1		General Assembly. The Advisory Committee shall meet
2		periodically and shall report the information to the Mayor of
3		the City and to the General Assembly by December 31st of every
4		year.
5		The Advisory Committee shall be dissolved on the date that
6		casino gambling operations are first conducted at a permanent
7		facility under the license authorized under Section 7 of the
8		Illinois Gambling Act. For the purposes of this Section, the
9		terms "female" and "minority person" have the meanings provided
10		in Section 2 of the Business Enterprise for Minorities,
11		Females, and Persons with Disabilities Act.
12		Section 1-65. Acquisition of property; eminent domain
13		proceedings. For the lawful purposes of this Act, the City may
14		acquire, by eminent domain or by condemnation proceedings in
15		the manner provided by the Eminent Domain Act, real or personal
16		property or interests in real or personal property located in
17		the City, and the City may convey to the Authority property so
18		acquired. The acquisition of property under this Section is
19		declared to be for a public use.
20		Section 1-67. Limitations on gaming at Chicago airports.
21		The Authority may conduct gaming operations in an airport under
22		the administration or control of the Chicago Department of
23		Aviation. Gaming operations may be conducted pursuant to this
24		Section so long as (i) gaming operations are conducted in a

SB1739 Engrossed - 28 - LRB098 10559 AMC 40804 b
1		secured area that is beyond the Transportation Security
2		Administration security checkpoints and only available to
3		airline passengers at least 21 years of age who are members of
4		a private club, and not to the general public, (ii) gaming
5		operations are limited to slot machines, as defined in Section
6		4 of the Illinois Gambling Act, and (iii) the combined number
7		of gaming positions operating in the City at the airports and
8		at the temporary and permanent casino facility does not exceed
9		the maximum number of gaming positions authorized pursuant to
10		subsection (h) of Section 7 of the Illinois Gambling Act.
11		Gaming operations at an airport are subject to all applicable
12		laws and rules that apply to any other gaming facility under
13		this Act or the Illinois Gambling Act.
14		Section 1-70. Local regulation. In addition to this Act,
15		the Illinois Gambling Act, and all of the rules of the Gaming
16		Board, the casino facilities and operations therein shall be
17		subject to all ordinances and regulations of the City. The
18		construction, development, and operation of the casino shall
19		comply with all ordinances, regulations, rules, and controls of
20		the City, including, but not limited to, those relating to
21		zoning and planned development, building, fire prevention, and
22		land use. However, the regulation of gaming operations is
23		subject to the exclusive jurisdiction of the Gaming Board. The
24		Gaming Board shall be responsible for the investigation for and
25		issuance of all licenses required by this Act and the Illinois

SB1739 Engrossed - 29 - LRB098 10559 AMC 40804 b
1		Gambling Act.
2		Section 1-75. Borrowing.
3		(a) The Authority may borrow money and issue bonds as
4		provided in this Section. Bonds of the Authority may be issued
5		to provide funds for land acquisition, site assembly and
6		preparation, and the design and construction of the casino, as
7		defined in the Illinois Gambling Act, all ancillary and related
8		facilities comprising the casino complex, and all on-site and
9		off-site infrastructure improvements required in connection
10		with the development of the casino; to refund (at the time or
11		in advance of any maturity or redemption) or redeem any bonds
12		of the Authority; to provide or increase a debt service reserve
13		fund or other reserves with respect to any or all of its bonds;
14		or to pay the legal, financial, administrative, bond insurance,
15		credit enhancement, and other legal expenses of the
16		authorization, issuance, or delivery of bonds. In this Act, the
17		term "bonds" also includes notes of any kind, interim
18		certificates, refunding bonds, or any other evidence of
19		obligation for borrowed money issued under this Section. Bonds
20		may be issued in one or more series and may be payable and
21		secured either on a parity with or separately from other bonds.
22		(b) The bonds of the Authority shall be payable from one or
23		more of the following sources: (i) the property or revenues of
24		the Authority; (ii) revenues derived from the casino; (iii)
25		revenues derived from any casino operator licensee; (iv) fees,

SB1739 Engrossed - 30 - LRB098 10559 AMC 40804 b
1		bid proceeds, charges, lease payments, payments required
2		pursuant to any casino management contract or other revenues
3		payable to the Authority, or any receipts of the Authority; (v)
4		payments by financial institutions, insurance companies, or
5		others pursuant to letters or lines of credit, policies of
6		insurance, or purchase agreements; (vi) investment earnings
7		from funds or accounts maintained pursuant to a bond resolution
8		or trust indenture; (vii) proceeds of refunding bonds; (viii)
9		any other revenues derived from or payments by the City; and
10		(ix) any payments by any casino operator licensee or others
11		pursuant to any guaranty agreement.
12		(c) Bonds shall be authorized by a resolution of the
13		Authority and may be secured by a trust indenture by and
14		between the Authority and a corporate trustee or trustees,
15		which may be any trust company or bank having the powers of a
16		trust company within or without the State. Bonds shall meet the
17		following requirements:
18		(1) Bonds may bear interest payable at any time or
19		times and at any rate or rates, notwithstanding any other
20		provision of law to the contrary, and may be subject to
21		such other terms and conditions as may be provided by the
22		resolution or indenture authorizing the issuance of such
23		bonds.
24		(2) Bonds issued pursuant to this Section may be
25		payable on such dates and times as may be provided for by
26		the resolution or indenture authorizing the issuance of

SB1739 Engrossed - 31 - LRB098 10559 AMC 40804 b
1		such bonds; provided, however, that such bonds shall mature
2		no later than 30 years from the date of issuance.
3		(3) Bonds issued pursuant to this Section may be sold
4		pursuant to notice of sale and public bid or by negotiated
5		sale.
6		(4) Bonds shall be payable at a time or times, in the
7		denominations and form, including book entry form, either
8		coupon, registered, or both, and carry the registration and
9		privileges as to exchange, transfer or conversion, and
10		replacement of mutilated, lost, or destroyed bonds as the
11		resolution or trust indenture may provide.
12		(5) Bonds shall be payable in lawful money of the
13		United States at a designated place.
14		(6) Bonds shall be subject to the terms of purchase,
15		payment, redemption, refunding, or refinancing that the
16		resolution or trust indenture provides.
17		(7) Bonds shall be executed by the manual or facsimile
18		signatures of the officers of the Authority designated by
19		the Board, which signatures shall be valid at delivery even
20		for one who has ceased to hold office.
21		(8) Bonds shall be sold at public or private sale in
22		the manner and upon the terms determined by the Authority.
23		(9) Bonds shall be issued in accordance with the
24		provisions of the Local Government Debt Reform Act.
25		(d) The Authority shall adopt a procurement program with
26		respect to contracts relating to underwriters, bond counsel,

SB1739 Engrossed - 32 - LRB098 10559 AMC 40804 b
1		financial advisors, and accountants. The program shall include
2		goals for the payment of not less than 30% of the total dollar
3		value of the fees from these contracts to minority-owned
4		businesses and female-owned businesses as defined in the
5		Business Enterprise for Minorities, Females, and Persons with
6		Disabilities Act. The Authority shall conduct outreach to
7		minority-owned businesses and female-owned businesses.
8		Outreach shall include, but is not limited to, advertisements
9		in periodicals and newspapers, mailings, and other appropriate
10		media. The Authority shall submit to the General Assembly a
11		comprehensive report that shall include, at a minimum, the
12		details of the procurement plan, outreach efforts, and the
13		results of the efforts to achieve goals for the payment of
14		fees.
15		(e) Subject to the Illinois Gambling Act and rules of the
16		Gaming Board regarding pledging of interests in holders of
17		owners licenses, any resolution or trust indenture may contain
18		provisions that may be a part of the contract with the holders
19		of the bonds as to the following:
20		(1) Pledging, assigning, or directing the use,
21		investment, or disposition of revenues of the Authority or
22		proceeds or benefits of any contract, including without
23		limitation any rights in any casino management contract.
24		(2) The setting aside of loan funding deposits, debt
25		service reserves, replacement or operating reserves, cost
26		of issuance accounts and sinking funds, and the regulation,

SB1739 Engrossed - 33 - LRB098 10559 AMC 40804 b
1		investment, and disposition thereof.
2		(3) Limitations on the purposes to which or the
3		investments in which the proceeds of sale of any issue of
4		bonds or the Authority's revenues and receipts may be
5		applied or made.
6		(4) Limitations on the issue of additional bonds, the
7		terms upon which additional bonds may be issued and
8		secured, the terms upon which additional bonds may rank on
9		a parity with, or be subordinate or superior to, other
10		bonds.
11		(5) The refunding, advance refunding, or refinancing
12		of outstanding bonds.
13		(6) The procedure, if any, by which the terms of any
14		contract with bondholders may be altered or amended and the
15		amount of bonds and holders of which must consent thereto
16		and the manner in which consent shall be given.
17		(7) Defining the acts or omissions that shall
18		constitute a default in the duties of the Authority to
19		holders of bonds and providing the rights or remedies of
20		such holders in the event of a default, which may include
21		provisions restricting individual rights of action by
22		bondholders.
23		(8) Providing for guarantees, pledges of property,
24		letters of credit, or other security, or insurance for the
25		benefit of bondholders.
26		(f) No member of the Casino Board, nor any person executing

SB1739 Engrossed - 34 - LRB098 10559 AMC 40804 b
1		the bonds, shall be liable personally on the bonds or subject
2		to any personal liability by reason of the issuance of the
3		bonds.
4		(g) The Authority may issue and secure bonds in accordance
5		with the provisions of the Local Government Credit Enhancement
6		Act.
7		(h) A pledge by the Authority of revenues and receipts as
8		security for an issue of bonds or for the performance of its
9		obligations under any casino management contract shall be valid
10		and binding from the time when the pledge is made. The revenues
11		and receipts pledged shall immediately be subject to the lien
12		of the pledge without any physical delivery or further act, and
13		the lien of any pledge shall be valid and binding against any
14		person having any claim of any kind in tort, contract, or
15		otherwise against the Authority, irrespective of whether the
16		person has notice. No resolution, trust indenture, management
17		agreement or financing statement, continuation statement, or
18		other instrument adopted or entered into by the Authority need
19		be filed or recorded in any public record other than the
20		records of the Authority in order to perfect the lien against
21		third persons, regardless of any contrary provision of law.
22		(i) Bonds that are being paid or retired by issuance, sale,
23		or delivery of bonds, and bonds for which sufficient funds have
24		been deposited with the paying agent or trustee to provide for
25		payment of principal and interest thereon, and any redemption
26		premium, as provided in the authorizing resolution, shall not

SB1739 Engrossed - 35 - LRB098 10559 AMC 40804 b
1		be considered outstanding for the purposes of this subsection.
2		(j) The bonds of the Authority shall not be indebtedness of
3		the State. The bonds of the Authority are not general
4		obligations of the State and are not secured by a pledge of the
5		full faith and credit of the State and the holders of bonds of
6		the Authority may not require the application of State revenues
7		or funds to the payment of bonds of the Authority. The
8		foregoing non-recourse language must be printed in bold-face
9		type on the face of the bonds and in the preliminary and final
10		official statements on the bonds.
11		(k) The State of Illinois pledges and agrees with the
12		owners of the bonds that it will not limit or alter the rights
13		and powers vested in the Authority by this Act so as to impair
14		the terms of any contract made by the Authority with the owners
15		or in any way impair the rights and remedies of the owners
16		until the bonds, together with interest on them, and all costs
17		and expenses in connection with any action or proceedings by or
18		on behalf of the owners, are fully met and discharged. The
19		Authority is authorized to include this pledge and agreement in
20		any contract with the owners of bonds issued under this
21		Section.
22		(l) No person holding an elective office in the City, in
23		Cook County, or in this State, holding a seat in the General
24		Assembly, or serving as a board member, trustee, officer, or
25		employee of the Authority, including the spouse of that person,
26		may receive a legal, banking, consulting, or other fee related

SB1739 Engrossed - 36 - LRB098 10559 AMC 40804 b
1		to the issuance of bonds. This prohibition shall also apply to
2		a company or firm that employs a person holding an elective
3		office in the City, in Cook County, or in this State, holding a
4		seat in the General Assembly, or serving as a board member,
5		trustee, officer, or employee of the Authority, including the
6		spouse of that person, if the person or his or her spouse has
7		greater than 7.5% ownership of the company or firm.
8		Section 1-85. Derivative products. With respect to all or
9		part of any issue of its bonds, the Authority may enter into
10		agreements or contracts with any necessary or appropriate
11		person, which will have the benefit of providing to the
12		Authority an interest rate basis, cash flow basis, or other
13		basis different from that provided in the bonds for the payment
14		of interest. Such agreements or contracts may include, without
15		limitation, agreements or contracts commonly known as
16		"interest rate swap agreements", "forward payment conversion
17		agreements", "futures", "options", "puts", or "calls" and
18		agreements or contracts providing for payments based on levels
19		of or changes in interest rates, agreements or contracts to
20		exchange cash flows or a series of payments, or to hedge
21		payment, rate spread, or similar exposure. Any such agreement
22		or contract shall be solely an obligation or indebtedness of
23		the Authority and shall not be an obligation or indebtedness of
24		the State, nor shall any party thereto have any recourse
25		against the State in connection with the agreement or contract.

SB1739 Engrossed - 37 - LRB098 10559 AMC 40804 b
1		Section 1-90. Legality for investment. The State of
2		Illinois, all governmental entities, all public officers,
3		banks, bankers, trust companies, savings banks and
4		institutions, building and loan associations, savings and loan
5		associations, investment companies, and other persons carrying
6		on a banking business, insurance companies, insurance
7		associations, and other persons carrying on an insurance
8		business, and all executors, administrators, guardians,
9		trustees, and other fiduciaries may legally invest any sinking
10		funds, moneys, or other funds belonging to them or within their
11		control in any bonds issued under this Act. However, nothing in
12		this Section shall be construed as relieving any person or
13		entity from any duty of exercising reasonable care in selecting
14		securities for purchase or investment.
15		Section 1-105. Budgets and reporting.
16		(a) The Casino Board shall annually adopt a budget for each
17		fiscal year. The budget may be modified from time to time in
18		the same manner and upon the same vote as it may be adopted.
19		The budget shall include the Authority's available funds and
20		estimated revenues and shall provide for payment of its
21		obligations and estimated expenditures for the fiscal year,
22		including, without limitation, expenditures for
23		administration, operation, maintenance and repairs, debt
24		service, and deposits into reserve and other funds and capital

SB1739 Engrossed - 38 - LRB098 10559 AMC 40804 b
1		projects.
2		(b) The Casino Board shall annually cause the finances of
3		the Authority to be audited by a firm of certified public
4		accountants selected by the Casino Board in accordance with the
5		rules of the Gaming Board and post on the Authority's Internet
6		website such financial information as is required to be posted
7		by all other owners licensees under the Illinois Gambling Act.
8		(c) The Casino Board shall, for each fiscal year, prepare
9		an annual report setting forth information concerning its
10		activities in the fiscal year and the status of the development
11		of the casino. The annual report shall include financial
12		information of the Authority consistent with that which is
13		required for all other owners licensees under the Illinois
14		Gambling Act, the budget for the succeeding fiscal year, and
15		the current capital plan as of the date of the report. Copies
16		of the annual report shall be made available to persons who
17		request them and shall be submitted not later than 120 days
18		after the end of the Authority's fiscal year or, if the audit
19		of the Authority's financial statements is not completed within
20		120 days after the end of the Authority's fiscal year, as soon
21		as practical after completion of the audit, to the Governor,
22		the Mayor, the General Assembly, and the Commission on
23		Government Forecasting and Accountability.
24		Section 1-110. Deposit and withdrawal of funds.
25		(a) All funds deposited by the Authority in any bank or

SB1739 Engrossed - 39 - LRB098 10559 AMC 40804 b
1		savings and loan association shall be placed in the name of the
2		Authority and shall be withdrawn or paid out only by check or
3		draft upon the bank or savings and loan association, signed by
4		2 officers or employees designated by the Casino Board.
5		Notwithstanding any other provision of this Section, the Casino
6		Board may designate any of its members or any officer or
7		employee of the Authority to authorize the wire transfer of
8		funds deposited by the secretary-treasurer of funds in a bank
9		or savings and loan association for the payment of payroll and
10		employee benefits-related expenses.
11		No bank or savings and loan association shall receive
12		public funds as permitted by this Section unless it has
13		complied with the requirements established pursuant to Section
14		6 of the Public Funds Investment Act.
15		(b) If any officer or employee whose signature appears upon
16		any check or draft issued pursuant to this Act ceases (after
17		attaching his signature) to hold his or her office before the
18		delivery of such a check or draft to the payee, his or her
19		signature shall nevertheless be valid and sufficient for all
20		purposes with the same effect as if he or she had remained in
21		office until delivery thereof.
22		Section 1-112. Contracts with the Authority or casino
23		operator licensee; disclosure requirements.
24		(a) A bidder, respondent, offeror, or contractor for
25		contracts with the Authority or casino operator licensee shall

SB1739 Engrossed - 40 - LRB098 10559 AMC 40804 b
1		disclose the identity of all officers and directors and every
2		owner, beneficiary, or person with beneficial interest of more
3		than 1% or shareholder entitled to receive more than 1% of the
4		total distributable income of any corporation having any
5		interest in the contract or in the bidder, respondent, offeror,
6		or contractor. The disclosure shall be in writing and attested
7		to by an owner, trustee, corporate official, or agent. If stock
8		in a corporation is publicly traded and there is no readily
9		known individual having greater than a 1% interest, then a
10		statement to that effect attested to by an officer or agent of
11		the corporation shall fulfill the disclosure statement
12		requirement of this Section. A bidder, respondent, offeror, or
13		contractor shall notify the Authority of any changes in
14		officers, directors, ownership, or individuals having a
15		beneficial interest of more than 1%. Notwithstanding the
16		provisions of this subsection (a), the Gaming Board may adopt
17		rules in connection with contractors for contracts with the
18		Authority or the casino operator licensee.
19		(b) A bidder, respondent, offeror, or contractor for
20		contracts with an annual value of $25,000 or more or for a
21		period to exceed one year shall disclose all political
22		contributions of the bidder, respondent, offeror, or
23		contractor and any affiliated person or entity. Disclosure
24		shall include at least the names and addresses of the
25		contributors and the dollar amounts of any contributions to any
26		political committee made within the previous 2 years. The

SB1739 Engrossed - 41 - LRB098 10559 AMC 40804 b
1		disclosure must be submitted to the Gaming Board with a copy of
2		the contract. All such disclosures shall be posted on the
3		websites of the Authority and the Gaming Board.
4		(c) As used in this Section:
5		"Contribution" means contribution as defined in Section
6		9-1.4 of the Election Code.
7		"Affiliated person" means (i) any person with any ownership
8		interest or distributive share of the bidding, responding, or
9		contracting entity in excess of 1%, (ii) executive employees of
10		the bidding, responding, or contracting entity, and (iii) the
11		spouse, minor children, and parents of any such persons.
12		"Affiliated entity" means (i) any parent or subsidiary of
13		the bidding or contracting entity, (ii) any member of the same
14		unitary business group, or (iii) any political committee for
15		which the bidding, responding, or contracting entity is the
16		sponsoring entity.
17		(d) The Gaming Board may direct the Authority or a casino
18		operator licensee to void a contract if a violation of this
19		Section occurs. The Authority may direct a casino operator
20		licensee to void a contract if a violation of this Section
21		occurs.
22		(e) All contracts pertaining to the actual operation of the
23		casino and related gaming activities shall be entered into by
24		the casino operator licensee and not the Authority and shall be
25		subject to the regulation, oversight, and approval of the
26		Gaming Board, applying the same regulation, oversight, and

SB1739 Engrossed - 42 - LRB098 10559 AMC 40804 b
1		approval requirements as would be applied to any other owners
2		licensee under the Illinois Gambling Act.
3		Section 1-115. Purchasing.
4		(a) The Casino Board shall designate an officer of the
5		Authority to serve as the Chief Procurement Officer for the
6		Authority. The Chief Procurement Officer shall have all powers
7		and duties set forth in Section 15 of Division 10 of Article 8
8		of the Illinois Municipal Code. Except as otherwise provided in
9		this Section, the Chief Procurement Officer of the Authority
10		shall conduct procurements on behalf of the Authority subject
11		to Title 2, Chapter 92 of the Municipal Code of Chicago, which
12		by its terms incorporates Division 10 of Article 8 of the
13		Illinois Municipal Code.
14		(b) All contracts for amounts greater than $25,000 must be
15		approved by the Casino Board and executed by the chairperson of
16		the Casino Board and executive director of the Authority.
17		Contracts for amounts of $25,000 or less may be approved and
18		executed by the Chief Procurement Officer for the Authority and
19		executive director of the Authority, with approval by the chief
20		legal counsel for the Authority as to form and legality.
21		(c) All construction contracts and contracts for supplies,
22		materials, equipment, and services for amounts greater than
23		$25,000 shall be let by a competitive selection process to the
24		lowest responsible proposer, after advertising for proposals,
25		except for the following:

SB1739 Engrossed - 43 - LRB098 10559 AMC 40804 b
1		(1) when repair parts, accessories, equipment, or
2		services are required for equipment or services previously
3		furnished or contracted for;
4		(2) when services such as water, light, heat, power,
5		telephone (other than long-distance service), or telegraph
6		are required;
7		(3) casino management contracts, which shall be
8		awarded as set forth in Section 1-45 of this Act;
9		(4) contracts where there is only one economically
10		feasible source;
11		(5) when a purchase is needed on an immediate,
12		emergency basis because there exists a threat to public
13		health or public safety, or when immediate expenditure is
14		necessary for repairs to Authority property in order to
15		protect against further loss of or damage to Authority
16		property, to prevent or minimize serious disruption in
17		Authority services or to ensure the integrity of Authority
18		records;
19		(6) contracts for professional services other than for
20		management of the casino, except such contracts described
21		in subsection (d) of this Section; and
22		(7) contracts for the use, purchase, delivery,
23		movement, or installation of (i) data processing
24		equipment, software, and services and (ii)
25		telecommunications equipment, software, and services.
26		(d) Contracts for professional services for a term of more

SB1739 Engrossed - 44 - LRB098 10559 AMC 40804 b
1		than one year or contracts that may require payment in excess
2		of $25,000 in one year shall be let by a competitive bidding
3		process to the most highly qualified firm that agrees to
4		compensation and other terms of engagement that are both
5		reasonable and acceptable to the Casino Board.
6		(e) All contracts involving less than $25,000 shall be let
7		by competitive selection process whenever possible, and in any
8		event in a manner calculated to ensure the best interests of
9		the public.
10		(f) In determining the responsibility of any proposer, the
11		Authority may take into account the proposer's (or an
12		individual having a beneficial interest, directly or
13		indirectly, of more than 1% in such proposing entity) past
14		record of dealings with the Authority, the proposer's
15		experience, adequacy of equipment, and ability to complete
16		performance within the time set, and other factors besides
17		financial responsibility. No such contract shall be awarded to
18		any proposer other than the lowest proposer (in case of
19		purchase or expenditure) unless authorized or approved by a
20		vote of at least 3 members of the Casino Board and such action
21		is accompanied by a written statement setting forth the reasons
22		for not awarding the contract to the highest or lowest
23		proposer, as the case may be. The statement shall be kept on
24		file in the principal office of the Authority and open to
25		public inspection.
26		(g) The Authority shall have the right to reject all

SB1739 Engrossed - 45 - LRB098 10559 AMC 40804 b
1		proposals and to re-advertise for proposals. If after any such
2		re-advertisement, no responsible and satisfactory proposals,
3		within the terms of the re-advertisement, is received, the
4		Authority may award such contract without competitive
5		selection. The contract must not be less advantageous to the
6		Authority than any valid proposal received pursuant to
7		advertisement.
8		(h) Advertisements for proposals and re-proposals shall be
9		published at least once in a daily newspaper of general
10		circulation published in the City at least 10 calendar days
11		before the time for receiving proposals and in an online
12		bulletin published on the Authority's website. Such
13		advertisements shall state the time and place for receiving and
14		opening of proposals and, by reference to plans and
15		specifications on file at the time of the first publication or
16		in the advertisement itself, shall describe the character of
17		the proposed contract in sufficient detail to fully advise
18		prospective proposers of their obligations and to ensure free
19		and open competitive selection.
20		(i) All proposals in response to advertisements shall be
21		sealed and shall be publicly opened by the Authority. All
22		proposers shall be entitled to be present in person or by
23		representatives. Cash or a certified or satisfactory cashier's
24		check, as a deposit of good faith, in a reasonable amount to be
25		fixed by the Authority before advertising for proposals, shall
26		be required with the proposal. A bond for faithful performance

SB1739 Engrossed - 46 - LRB098 10559 AMC 40804 b
1		of the contract with surety or sureties satisfactory to the
2		Authority and adequate insurance may be required in reasonable
3		amounts to be fixed by the Authority before advertising for
4		proposals.
5		(j) The contract shall be awarded as promptly as possible
6		after the opening of proposals. The proposal of the successful
7		proposer, as well as the bids of the unsuccessful proposers,
8		shall be placed on file and be open to public inspection
9		subject to the exemptions from disclosure provided under
10		Section 7 of the Freedom of Information Act. All proposals
11		shall be void if any disclosure of the terms of any proposals
12		in response to an advertisement is made or permitted to be made
13		by the Authority before the time fixed for opening proposals.
14		(k) Notice of each and every contract that is offered,
15		including renegotiated contracts and change orders, shall be
16		published in an online bulletin. The online bulletin must
17		include at least the date first offered, the date submission of
18		offers is due, the location that offers are to be submitted to,
19		a brief purchase description, the method of source selection,
20		information of how to obtain a comprehensive purchase
21		description and any disclosure and contract forms, and
22		encouragement to prospective vendors to hire qualified
23		veterans, as defined by Section 45-67 of the Illinois
24		Procurement Code, and Illinois residents discharged from any
25		Illinois adult correctional center subject to Gaming Board
26		licensing and eligibility rules. Notice of each and every

SB1739 Engrossed - 47 - LRB098 10559 AMC 40804 b
1		contract that is let or awarded, including renegotiated
2		contracts and change orders, shall be published in the online
3		bulletin and must include at least all of the information
4		specified in this subsection (k), as well as the name of the
5		successful responsible proposer or offeror, the contract
6		price, and the number of unsuccessful responsive proposers and
7		any other disclosure specified in this Section. This notice
8		must be posted in the online electronic bulletin prior to
9		execution of the contract.
10		Section 1-130. Affirmative action and equal opportunity
11		obligations of Authority.
12		(a) The Authority is subject to the requirements of Article
13		IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
14		inclusive) of the Chicago Municipal Code, as now or hereafter
15		amended, renumbered, or succeeded, concerning a Minority-Owned
16		and Women-Owned Business Enterprise Procurement Program for
17		construction contracts, and Section 2-92-420 et seq. of the
18		Chicago Municipal Code, as now or hereafter amended,
19		renumbered, or succeeded, concerning a Minority-Owned and
20		Women-Owned Business Enterprise Procurement Program.
21		(b) The Authority is authorized to enter into agreements
22		with contractors' associations, labor unions, and the
23		contractors working on the development of the casino to
24		establish an apprenticeship preparedness training program to
25		provide for an increase in the number of minority and female

SB1739 Engrossed - 48 - LRB098 10559 AMC 40804 b
1		journeymen and apprentices in the building trades and to enter
2		into agreements with community college districts or other
3		public or private institutions to provide readiness training.
4		The Authority is further authorized to enter into contracts
5		with public and private educational institutions and persons in
6		the gaming, entertainment, hospitality, and tourism industries
7		to provide training for employment in those industries.
8		Section 1-135. Transfer of interest. Neither the Authority
9		nor the City may sell, lease, rent, transfer, exchange, or
10		otherwise convey any interest that they have in the casino
11		without prior approval of the General Assembly.
12		Section 1-140. Home rule. The regulation and licensing of
13		casinos and casino gaming, casino gaming facilities, and casino
14		operator licensees under this Act are exclusive powers and
15		functions of the State. A home rule unit may not regulate or
16		license casinos, casino gaming, casino gaming facilities, or
17		casino operator licensees under this Act, except as provided
18		under this Act. This Section is a denial and limitation of home
19		rule powers and functions under subsection (h) of Section 6 of
20		Article VII of the Illinois Constitution.
21		Section 1-145. Prohibition of political contributions from
22		casino operator licensees and applicants.
23		(a) The General Assembly has a compelling interest in

SB1739 Engrossed - 49 - LRB098 10559 AMC 40804 b
1		protecting the integrity of both the electoral process and the
2		legislative process by preventing corruption and the
3		appearance of corruption which may arise through permitting
4		certain political campaign contributions by certain persons
5		involved in the gaming industry and regulated by the State.
6		Unlike most other regulated industries, gaming is especially
7		susceptible to corruption and potential criminal influence. In
8		Illinois, only licensed gaming activities are legal and all
9		other gaming activities are strictly prohibited. Given these
10		circumstances, it is imperative to eliminate any potential
11		corrupt influence in the gaming industry and the electoral
12		process.
13		Banning political campaign contributions by certain
14		persons subject to this Section to State officeholders and
15		candidates for such offices and to county and municipal
16		officeholders and candidates for such offices in counties and
17		municipalities that receive financial benefits from gaming
18		activities is necessary to prevent corruption and the
19		appearance of corruption that may arise when political campaign
20		contributions and gaming that is regulated by the State and
21		that confers benefits on counties and municipalities are
22		intermingled.
23		The General Assembly has prohibited political campaign
24		contributions to certain State and local officeholders and
25		candidates for such offices by certain persons with State of
26		Illinois and Metropolitan Pier and Exposition Authority

SB1739 Engrossed - 50 - LRB098 10559 AMC 40804 b
1		contracts and pending bids or proposals for contracts of over
2		$50,000 and certain individuals and entities affiliated with
3		such persons. Certain gaming licensees will receive receipts
4		far in excess of the base level of contract amounts subject to
5		such other campaign contribution prohibitions.
6		(b) As used in this Section:
7		"Affiliated entity" means (i) any corporate parent and
8		operating subsidiary of the business entity applying for or
9		holding a license, (ii) each operating subsidiary of the
10		corporate parent of the business entity applying for or holding
11		a license, (iii) any organization recognized by the United
12		States Internal Revenue Service as a tax-exempt organization
13		described in Section 501(c) of the Internal Revenue Code of
14		1986 (or any successor provision of federal tax law)
15		established by one or more business entities seeking or holding
16		a license, any affiliated entity of such business entity, or
17		any affiliated person of such business entity, and (iv) any
18		political committee for which the business entity applying for
19		or holding a license, or any 501(c) organization described in
20		item (iii) related to that business entity, is the sponsoring
21		entity as defined in Section 9-3 of the Election Code. For
22		purposes of item (iv), the funding of all business entities
23		applying for or holding a license shall be aggregated in
24		determining whether such political committee is an affiliated
25		entity.
26		"Affiliated person" means (i) any person with any ownership

SB1739 Engrossed - 51 - LRB098 10559 AMC 40804 b
1		interest or distributive share in excess of 7.5% of any
2		business entity applying for or holding a license, (ii)
3		executive employees of any such business entity, (iii) any
4		person designated as a key person under the Illinois Gambling
5		Act, and (iv) the spouse of the persons described in items (i)
6		through (iii).
7		"Business entity" means any entity doing business for
8		profit, whether organized as a corporation, partnership, sole
9		proprietorship, limited liability company, or partnership or
10		otherwise.
11		"Contribution" means a contribution as defined in Section
12		9-1.4 of the Election Code.
13		"Declared candidate" means a person who has filed a
14		statement of candidacy and petition for nomination or election
15		in the principal office of the State Board of Elections, or in
16		the office of the appropriate election authority for any county
17		or municipality in which a casino is located or proposed or
18		which receives any gaming revenue.
19		"Executive employee" means (i) any person who is an officer
20		or director or who fulfills duties equivalent to those of an
21		officer or director of a business entity applying for or
22		holding a license and (ii) any employee of such business entity
23		who is required to register under the Lobbyist Registration
24		Act.
25		"License" means the casino operator license issued
26		pursuant to this Act.

SB1739 Engrossed - 52 - LRB098 10559 AMC 40804 b
1		"Officeholder" means the Governor, Lieutenant Governor,
2		Attorney General, Secretary of State, Comptroller, Treasurer,
3		member of the General Assembly, or any officeholder in any
4		county or municipality in which a riverboat, casino, or
5		electronic gaming device is located or proposed or that
6		receives any gaming revenue.
7		(c) Any person or business entity applying for or holding a
8		license, any affiliated entities or persons of such business
9		entity, and any entities or persons soliciting a contribution
10		or causing a contribution to be made on behalf of such person
11		or business entity, are prohibited from making any contribution
12		to any officeholder or declared candidate or any political
13		committee affiliated with any officeholder or declared
14		candidate, as defined in Section 9-1.8 of the Election Code.
15		This prohibition shall commence upon filing of an application
16		for a license and shall continue for a period of 2 years after
17		termination, suspension or revocation of the license.
18		The Gaming Board shall have authority to suspend, revoke,
19		or restrict the license and to impose civil penalties of up to
20		$100,000 for each violation of this subsection (c). A notice of
21		each such violation and the penalty imposed shall be published
22		on the Gaming Board's Internet website and in the Illinois
23		Register. Payments received by the State pursuant to this
24		subsection (c) shall be deposited into the General Revenue
25		Fund.
26		Any officeholder or declared candidate or any political

SB1739 Engrossed - 53 - LRB098 10559 AMC 40804 b
1		committee affiliated with any officeholder or declared
2		candidate that has received a contribution in violation of this
3		subsection (c) shall pay an amount equal to the value of the
4		contribution to the State no more than 30 days after notice of
5		the violation concerning the contribution appears in the
6		Illinois Register. Payments received by the State pursuant to
7		this subsection (c) shall be deposited into the General Revenue
8		Fund.
9		(d) The Gaming Board shall post on its Internet website a
10		list of all persons, business entities, and affiliated entities
11		prohibited from making contributions to any officeholder or
12		declared candidate political committee pursuant to subsection
13		(c), which list shall be updated and published, at a minimum,
14		every 6 months.
15		Any person, business entity, or affiliated entity
16		prohibited from making contributions to any officeholder or
17		declared candidate political committee pursuant to subsection
18		(c) shall notify the Gaming Board within 7 days after
19		discovering any necessary change or addition to the information
20		relating to that person, business entity, or affiliated entity
21		contained in the list.
22		An individual who acts in good faith and in reliance on any
23		information contained in the list shall not be subject to any
24		penalties or liability imposed for a violation of this Section.
25		(e) If any provision of this Section is held invalid or its
26		application to any person or circumstance is held invalid, the

SB1739 Engrossed - 54 - LRB098 10559 AMC 40804 b
1		invalidity of that provision or application does not affect the
2		other provisions or applications of this Section that can be
3		given effect without the invalid application or provision.
4		ARTICLE 90.
5		Section 90-1. Findings. The General Assembly makes all of
6		the following findings:
7		(1) That the cumulative reduction to pre-K through 12
8		education funding since 2009 is approximately
9		$861,000,000.
10		(2) That during the last 2 years, general state aid to
11		Illinois common schools has been underfunded as a result of
12		budget cuts, resulting in pro-rated payments to school
13		districts that are less than the foundational level of
14		$6,119 per pupil, which represents the minimum each pupil
15		needs to be educated.
16		(3) That a significant infusion of new revenue is
17		necessary in order to fully fund the foundation level and
18		to maintain and support education in Illinois.
19		(4) That the decline of the Illinois horse racing and
20		breeding program, a $2.5 billion industry, would be
21		reversed if this amendatory Act of the 98th General
22		Assembly would be enacted.
23		(5) That the Illinois horse racing industry is on the
24		verge of extinction due to fierce competition from fully

SB1739 Engrossed - 55 - LRB098 10559 AMC 40804 b
1		developed horse racing and gaming operations in other
2		states.
3		(6) That allowing the State's horse racing venues,
4		currently licensed gaming destinations, to maximize their
5		capacities with gaming machines, would generate up to $120
6		million to $200 million for the State in the form of extra
7		licensing fees, plus an additional $100 million to $300
8		million in recurring annual tax revenue for the State to
9		help ensure that school, road, and other building projects
10		promised under the capital plan occur on schedule.
11		(7) That Illinois agriculture and other businesses
12		that support and supply the horse racing industry, already
13		a sector that employs over 37,000 Illinoisans, also stand
14		to substantially benefit and would be much more likely to
15		create additional jobs should Illinois horse racing once
16		again become competitive with other states.
17		(8) That by keeping these projects on track, the State
18		can be sure that significant job and economic growth will
19		in fact result from the previously enacted legislation.
20		(9) That gaming machines at Illinois horse racing
21		tracks would create an estimated 1,200 to 1,500 permanent
22		jobs, and an estimated capital investment of up to $200
23		million to $400 million at these race tracks would prompt
24		additional trade organization jobs necessary to construct
25		new facilities or remodel race tracks to operate electronic
26		gaming.

SB1739 Engrossed - 56 - LRB098 10559 AMC 40804 b
1		Section 90-3. The State Officials and Employees Ethics Act
2		is amended by changing Sections 5-45 and 20-10 as follows:
3		(5 ILCS 430/5-45)
4		Sec. 5-45. Procurement; revolving door prohibition.
5		(a) No former officer, member, or State employee, or spouse
6		or immediate family member living with such person, shall,
7		within a period of one year immediately after termination of
8		State employment, knowingly accept employment or receive
9		compensation or fees for services from a person or entity if
10		the officer, member, or State employee, during the year
11		immediately preceding termination of State employment,
12		participated personally and substantially in the award of State
13		contracts, or the issuance of State contract change orders,
14		with a cumulative value of $25,000 or more to the person or
15		entity, or its parent or subsidiary.
16		(b) No former officer of the executive branch or State
17		employee of the executive branch with regulatory or licensing
18		authority, or spouse or immediate family member living with
19		such person, shall, within a period of one year immediately
20		after termination of State employment, knowingly accept
21		employment or receive compensation or fees for services from a
22		person or entity if the officer or State employee, during the
23		year immediately preceding termination of State employment,
24		participated personally and substantially in making a

SB1739 Engrossed - 57 - LRB098 10559 AMC 40804 b
1		regulatory or licensing decision that directly applied to the
2		person or entity, or its parent or subsidiary.
3		(c) Within 6 months after the effective date of this
4		amendatory Act of the 96th General Assembly, each executive
5		branch constitutional officer and legislative leader, the
6		Auditor General, and the Joint Committee on Legislative Support
7		Services shall adopt a policy delineating which State positions
8		under his or her jurisdiction and control, by the nature of
9		their duties, may have the authority to participate personally
10		and substantially in the award of State contracts or in
11		regulatory or licensing decisions. The Governor shall adopt
12		such a policy for all State employees of the executive branch
13		not under the jurisdiction and control of any other executive
14		branch constitutional officer.
15		The policies required under subsection (c) of this Section
16		shall be filed with the appropriate ethics commission
17		established under this Act or, for the Auditor General, with
18		the Office of the Auditor General.
19		(d) Each Inspector General shall have the authority to
20		determine that additional State positions under his or her
21		jurisdiction, not otherwise subject to the policies required by
22		subsection (c) of this Section, are nonetheless subject to the
23		notification requirement of subsection (f) below due to their
24		involvement in the award of State contracts or in regulatory or
25		licensing decisions.
26		(e) The Joint Committee on Legislative Support Services,

SB1739 Engrossed - 58 - LRB098 10559 AMC 40804 b
1		the Auditor General, and each of the executive branch
2		constitutional officers and legislative leaders subject to
3		subsection (c) of this Section shall provide written
4		notification to all employees in positions subject to the
5		policies required by subsection (c) or a determination made
6		under subsection (d): (1) upon hiring, promotion, or transfer
7		into the relevant position; and (2) at the time the employee's
8		duties are changed in such a way as to qualify that employee.
9		An employee receiving notification must certify in writing that
10		the person was advised of the prohibition and the requirement
11		to notify the appropriate Inspector General in subsection (f).
12		(f) Any State employee in a position subject to the
13		policies required by subsection (c) or to a determination under
14		subsection (d), but who does not fall within the prohibition of
15		subsection (h) below, who is offered non-State employment
16		during State employment or within a period of one year
17		immediately after termination of State employment shall, prior
18		to accepting such non-State employment, notify the appropriate
19		Inspector General. Within 10 calendar days after receiving
20		notification from an employee in a position subject to the
21		policies required by subsection (c), such Inspector General
22		shall make a determination as to whether the State employee is
23		restricted from accepting such employment by subsection (a) or
24		(b). In making a determination, in addition to any other
25		relevant information, an Inspector General shall assess the
26		effect of the prospective employment or relationship upon

SB1739 Engrossed - 59 - LRB098 10559 AMC 40804 b
1		decisions referred to in subsections (a) and (b), based on the
2		totality of the participation by the former officer, member, or
3		State employee in those decisions. A determination by an
4		Inspector General must be in writing, signed and dated by the
5		Inspector General, and delivered to the subject of the
6		determination within 10 calendar days or the person is deemed
7		eligible for the employment opportunity. For purposes of this
8		subsection, "appropriate Inspector General" means (i) for
9		members and employees of the legislative branch, the
10		Legislative Inspector General; (ii) for the Auditor General and
11		employees of the Office of the Auditor General, the Inspector
12		General provided for in Section 30-5 of this Act; and (iii) for
13		executive branch officers and employees, the Inspector General
14		having jurisdiction over the officer or employee. Notice of any
15		determination of an Inspector General and of any such appeal
16		shall be given to the ultimate jurisdictional authority, the
17		Attorney General, and the Executive Ethics Commission.
18		(g) An Inspector General's determination regarding
19		restrictions under subsection (a) or (b) may be appealed to the
20		appropriate Ethics Commission by the person subject to the
21		decision or the Attorney General no later than the 10th
22		calendar day after the date of the determination.
23		On appeal, the Ethics Commission or Auditor General shall
24		seek, accept, and consider written public comments regarding a
25		determination. In deciding whether to uphold an Inspector
26		General's determination, the appropriate Ethics Commission or

SB1739 Engrossed - 60 - LRB098 10559 AMC 40804 b
1		Auditor General shall assess, in addition to any other relevant
2		information, the effect of the prospective employment or
3		relationship upon the decisions referred to in subsections (a)
4		and (b), based on the totality of the participation by the
5		former officer, member, or State employee in those decisions.
6		The Ethics Commission shall decide whether to uphold an
7		Inspector General's determination within 10 calendar days or
8		the person is deemed eligible for the employment opportunity.
9		(h) The following officers, members, or State employees
10		shall not, within a period of one year immediately after
11		termination of office or State employment, knowingly accept
12		employment or receive compensation or fees for services from a
13		person or entity if the person or entity or its parent or
14		subsidiary, during the year immediately preceding termination
15		of State employment, was a party to a State contract or
16		contracts with a cumulative value of $25,000 or more involving
17		the officer, member, or State employee's State agency, or was
18		the subject of a regulatory or licensing decision involving the
19		officer, member, or State employee's State agency, regardless
20		of whether he or she participated personally and substantially
21		in the award of the State contract or contracts or the making
22		of the regulatory or licensing decision in question:
23		(1) members or officers;
24		(2) members of a commission or board created by the
25		Illinois Constitution;
26		(3) persons whose appointment to office is subject to

SB1739 Engrossed - 61 - LRB098 10559 AMC 40804 b
1		the advice and consent of the Senate;
2		(4) the head of a department, commission, board,
3		division, bureau, authority, or other administrative unit
4		within the government of this State;
5		(5) chief procurement officers, State purchasing
6		officers, and their designees whose duties are directly
7		related to State procurement; and
8		(6) chiefs of staff, deputy chiefs of staff, associate
9		chiefs of staff, assistant chiefs of staff, and deputy
10		governors; .
11		(7) employees of the Illinois Racing Board; and
12		(8) employees of the Illinois Gaming Board.
13		(i) For the purposes of this Section, with respect to
14		officers or employees of a regional transit board, as defined
15		in this Act, the phrase "person or entity" does not include:
16		(i) the United States government, (ii) the State, (iii)
17		municipalities, as defined under Article VII, Section 1 of the
18		Illinois Constitution, (iv) units of local government, as
19		defined under Article VII, Section 1 of the Illinois
20		Constitution, or (v) school districts.
21		(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
22		(5 ILCS 430/20-10)
23		Sec. 20-10. Offices of Executive Inspectors General.
24		(a) Six Five independent Offices of the Executive Inspector
25		General are created, one each for the Governor, the Attorney

SB1739 Engrossed - 62 - LRB098 10559 AMC 40804 b
1		General, the Secretary of State, the Comptroller, and the
2		Treasurer and one for gaming activities. Each Office shall be
3		under the direction and supervision of an Executive Inspector
4		General and shall be a fully independent office with separate
5		appropriations.
6		(b) The Governor, Attorney General, Secretary of State,
7		Comptroller, and Treasurer shall each appoint an Executive
8		Inspector General, and the Governor shall appoint an Executive
9		Inspector General for gaming activities. Each appointment must
10		be made without regard to political affiliation and solely on
11		the basis of integrity and demonstrated ability. Appointments
12		shall be made by and with the advice and consent of the Senate
13		by three-fifths of the elected members concurring by record
14		vote. Any nomination not acted upon by the Senate within 60
15		session days of the receipt thereof shall be deemed to have
16		received the advice and consent of the Senate. If, during a
17		recess of the Senate, there is a vacancy in an office of
18		Executive Inspector General, the appointing authority shall
19		make a temporary appointment until the next meeting of the
20		Senate when the appointing authority shall make a nomination to
21		fill that office. No person rejected for an office of Executive
22		Inspector General shall, except by the Senate's request, be
23		nominated again for that office at the same session of the
24		Senate or be appointed to that office during a recess of that
25		Senate.
26		Nothing in this Article precludes the appointment by the

SB1739 Engrossed - 63 - LRB098 10559 AMC 40804 b
1		Governor, Attorney General, Secretary of State, Comptroller,
2		or Treasurer of any other inspector general required or
3		permitted by law. The Governor, Attorney General, Secretary of
4		State, Comptroller, and Treasurer each may appoint an existing
5		inspector general as the Executive Inspector General required
6		by this Article, provided that such an inspector general is not
7		prohibited by law, rule, jurisdiction, qualification, or
8		interest from serving as the Executive Inspector General
9		required by this Article. An appointing authority may not
10		appoint a relative as an Executive Inspector General.
11		Each Executive Inspector General shall have the following
12		qualifications:
13		(1) has not been convicted of any felony under the laws
14		of this State, another State, or the United States;
15		(2) has earned a baccalaureate degree from an
16		institution of higher education; and
17		(3) has 5 or more years of cumulative service (A) with
18		a federal, State, or local law enforcement agency, at least
19		2 years of which have been in a progressive investigatory
20		capacity; (B) as a federal, State, or local prosecutor; (C)
21		as a senior manager or executive of a federal, State, or
22		local agency; (D) as a member, an officer, or a State or
23		federal judge; or (E) representing any combination of (A)
24		through (D).
25		The term of each initial Executive Inspector General shall
26		commence upon qualification and shall run through June 30,

SB1739 Engrossed - 64 - LRB098 10559 AMC 40804 b
1		2008. The initial appointments shall be made within 60 days
2		after the effective date of this Act.
3		After the initial term, each Executive Inspector General
4		shall serve for 5-year terms commencing on July 1 of the year
5		of appointment and running through June 30 of the fifth
6		following year. An Executive Inspector General may be
7		reappointed to one or more subsequent terms.
8		A vacancy occurring other than at the end of a term shall
9		be filled by the appointing authority only for the balance of
10		the term of the Executive Inspector General whose office is
11		vacant.
12		Terms shall run regardless of whether the position is
13		filled.
14		(c) The Executive Inspector General appointed by the
15		Attorney General shall have jurisdiction over the Attorney
16		General and all officers and employees of, and vendors and
17		others doing business with, State agencies within the
18		jurisdiction of the Attorney General. The Executive Inspector
19		General appointed by the Secretary of State shall have
20		jurisdiction over the Secretary of State and all officers and
21		employees of, and vendors and others doing business with, State
22		agencies within the jurisdiction of the Secretary of State. The
23		Executive Inspector General appointed by the Comptroller shall
24		have jurisdiction over the Comptroller and all officers and
25		employees of, and vendors and others doing business with, State
26		agencies within the jurisdiction of the Comptroller. The

SB1739 Engrossed - 65 - LRB098 10559 AMC 40804 b
1		Executive Inspector General appointed by the Treasurer shall
2		have jurisdiction over the Treasurer and all officers and
3		employees of, and vendors and others doing business with, State
4		agencies within the jurisdiction of the Treasurer. The
5		Executive Inspector General appointed by the Governor shall
6		have jurisdiction over (i) the Governor, (ii) the Lieutenant
7		Governor, (iii) all officers and employees of, and vendors and
8		others doing business with, executive branch State agencies
9		under the jurisdiction of the Executive Ethics Commission and
10		not within the jurisdiction of the Attorney General, the
11		Secretary of State, the Comptroller, or the Treasurer, or the
12		Executive Inspector General for gaming activities, and (iv) all
13		board members and employees of the Regional Transit Boards and
14		all vendors and others doing business with the Regional Transit
15		Boards. The Executive Inspector General for gaming activities
16		appointed by the Governor has jurisdiction over the Illinois
17		Gaming Board, all officers and employees of the Illinois Gaming
18		Board, and all activities of the Illinois Gaming Board.
19		The jurisdiction of each Executive Inspector General is to
20		investigate allegations of fraud, waste, abuse, mismanagement,
21		misconduct, nonfeasance, misfeasance, malfeasance, or
22		violations of this Act or violations of other related laws and
23		rules.
24		(d) The compensation for each Executive Inspector General
25		shall be determined by the Executive Ethics Commission and
26		shall be made from appropriations made to the Comptroller for

SB1739 Engrossed - 66 - LRB098 10559 AMC 40804 b
1		this purpose. Subject to Section 20-45 of this Act, each
2		Executive Inspector General has full authority to organize his
3		or her Office of the Executive Inspector General, including the
4		employment and determination of the compensation of staff, such
5		as deputies, assistants, and other employees, as
6		appropriations permit. A separate appropriation shall be made
7		for each Office of Executive Inspector General.
8		(e) No Executive Inspector General or employee of the
9		Office of the Executive Inspector General may, during his or
10		her term of appointment or employment:
11		(1) become a candidate for any elective office;
12		(2) hold any other elected or appointed public office
13		except for appointments on governmental advisory boards or
14		study commissions or as otherwise expressly authorized by
15		law;
16		(3) be actively involved in the affairs of any
17		political party or political organization; or
18		(4) advocate for the appointment of another person to
19		an appointed or elected office or position or actively
20		participate in any campaign for any elective office.
21		In this subsection an appointed public office means a
22		position authorized by law that is filled by an appointing
23		authority as provided by law and does not include employment by
24		hiring in the ordinary course of business.
25		(e-1) No Executive Inspector General or employee of the
26		Office of the Executive Inspector General may, for one year

SB1739 Engrossed - 67 - LRB098 10559 AMC 40804 b
1		after the termination of his or her appointment or employment:
2		(1) become a candidate for any elective office;
3		(2) hold any elected public office; or
4		(3) hold any appointed State, county, or local judicial
5		office.
6		(e-2) The requirements of item (3) of subsection (e-1) may
7		be waived by the Executive Ethics Commission.
8		(f) An Executive Inspector General may be removed only for
9		cause and may be removed only by the appointing constitutional
10		officer. At the time of the removal, the appointing
11		constitutional officer must report to the Executive Ethics
12		Commission the justification for the removal.
13		(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
14		Section 90-5. The Alcoholism and Other Drug Abuse and
15		Dependency Act is amended by changing Section 5-20 as follows:
16		(20 ILCS 301/5-20)
17		Sec. 5-20. Compulsive gambling program.
18		(a) Subject to appropriation, the Department shall
19		establish a program for public education, research, and
20		training regarding problem and compulsive gambling and the
21		treatment and prevention of problem and compulsive gambling.
22		Subject to specific appropriation for these stated purposes,
23		the program must include all of the following:
24		(1) Establishment and maintenance of a toll-free "800"

SB1739 Engrossed - 68 - LRB098 10559 AMC 40804 b
1		telephone number to provide crisis counseling and referral
2		services to families experiencing difficulty as a result of
3		problem or compulsive gambling.
4		(2) Promotion of public awareness regarding the
5		recognition and prevention of problem and compulsive
6		gambling.
7		(3) Facilitation, through in-service training and
8		other means, of the availability of effective assistance
9		programs for problem and compulsive gamblers.
10		(4) Conducting studies to identify adults and
11		juveniles in this State who are, or who are at risk of
12		becoming, problem or compulsive gamblers.
13		(b) Subject to appropriation, the Department shall either
14		establish and maintain the program or contract with a private
15		or public entity for the establishment and maintenance of the
16		program. Subject to appropriation, either the Department or the
17		private or public entity shall implement the toll-free
18		telephone number, promote public awareness, and conduct
19		in-service training concerning problem and compulsive
20		gambling.
21		(c) Subject to appropriation, the Department shall produce
22		and supply the signs specified in Section 10.7 of the Illinois
23		Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
24		1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
25		of the Charitable Games Act, and Section 13.1 of the Illinois
26		Riverboat Gambling Act.

SB1739 Engrossed - 69 - LRB098 10559 AMC 40804 b
1		(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
2		Section 90-6. The Department of Commerce and Economic
3		Opportunity Law of the Civil Administrative Code of Illinois is
4		amended by adding Sections 605-530 and 605-535 as follows:
5		(20 ILCS 605/605-530 new)
6		Sec. 605-530. The Depressed Communities Economic
7		Development Board.
8		(a) The Depressed Communities Economic Development Board
9		is created as an advisory board within the Department of
10		Commerce and Economic Opportunity. The Board shall consist of
11		the following members:
12		(1) 3 members appointed by the Governor, one of whom
13		shall be appointed to serve an initial term of one year and
14		2 of whom shall be appointed to serve an initial term of 2
15		years;
16		(2) 2 members appointed by the Speaker of the House of
17		Representatives, one of whom shall be appointed to serve an
18		initial term of one year and one of whom shall be appointed
19		to serve an initial term of 2 years;
20		(3) 2 members appointed by the President of the Senate,
21		one of whom shall be appointed to serve an initial term of
22		one year and one of whom shall be appointed to serve an
23		initial term of 2 years;
24		(4) 2 members appointed by the Minority Leader of the

SB1739 Engrossed - 70 - LRB098 10559 AMC 40804 b
1		House of Representatives, one of whom shall be appointed to
2		serve an initial term of one year and one of whom shall be
3		appointed to serve an initial term of 2 years; and
4		(5) 2 members appointed by the Minority Leader of the
5		Senate, one of whom shall be appointed to serve an initial
6		term of one year and one of whom shall be appointed to
7		serve an initial term of 2 years.
8		The members of the Board shall elect a member to serve as
9		chair of the Board. The members of the Board shall reflect the
10		composition of the Illinois population with regard to ethnic
11		and racial composition.
12		After the initial terms, each member shall be appointed to
13		serve a term of 2 years and until his or her successor has been
14		appointed and assumes office. If a vacancy occurs in the Board
15		membership, then the vacancy shall be filled in the same manner
16		as the initial appointment. No member of the Board shall, at
17		the time of his or her appointment or within 2 years before the
18		appointment, hold elected office or be appointed to a State
19		board, commission, or agency. All Board members are subject to
20		the State Officials and Employees Ethics Act.
21		(b) Board members shall serve without compensation, but may
22		be reimbursed for their reasonable travel expenses from funds
23		available for that purpose. The Department of Commerce and
24		Economic Opportunity shall provide staff and administrative
25		support services to the Board.
26		(c) The Board must make recommendations, which must be

SB1739 Engrossed - 71 - LRB098 10559 AMC 40804 b
1		approved by a majority of the Board, to the Department of
2		Commerce and Economic Opportunity concerning the award of
3		grants from amounts appropriated to the Department from the
4		Depressed Communities Economic Development Fund, a special
5		fund created in the State treasury. The Department must make
6		grants to public or private entities submitting proposals to
7		the Board to revitalize an Illinois depressed community. Grants
8		may be used by these entities only for those purposes
9		conditioned with the grant. For the purposes of this subsection
10		(c), plans for revitalizing an Illinois depressed community
11		include plans intended to curb high levels of poverty,
12		unemployment, job and population loss, and general distress. An
13		Illinois depressed community is an area where the poverty rate,
14		as determined by using the most recent data released by the
15		United States Census Bureau, is at least 3% greater than the
16		State poverty rate as determined by using the most recent data
17		released by the United States Census Bureau.
18		(20 ILCS 605/605-535 new)
19		Sec. 605-535. The Commission on the Future of Economic
20		Development of the Latino Community.
21		(a) There is hereby created the Commission on the Future of
22		Economic Development of the Latino Community within the
23		Department. The purpose of the Commission shall be to maintain
24		and develop the economy of Latinos and to provide opportunities
25		for this community, which will enhance and expand the quality

SB1739 Engrossed - 72 - LRB098 10559 AMC 40804 b
1		of their lives.
2		The Commission shall concentrate its major efforts on
3		strategic planning, policy research and analysis, advocacy,
4		evaluation, and promoting coordination and collaboration.
5		During each regular legislative session, the Commission
6		must consult with appropriate legislative committees about the
7		State's economic development needs and opportunities in the
8		Latino community.
9		By October 1st of each even-numbered year, the Commission
10		must submit to the Governor and the General Assembly a biennial
11		comprehensive statewide economic development strategy for the
12		Latino community with a report on progress from the previous
13		comprehensive strategy.
14		The comprehensive statewide economic development strategy
15		may include, but is not limited to:
16		(1) an assessment of the Latino community's economic
17		vitality;
18		(2) recommended goals, objectives, and priorities for
19		the next biennium and the future;
20		(3) a common set of outcomes and benchmarks for the
21		economic development system as a whole for the Latino
22		community;
23		(4) recommendations for removing barriers for Latinos
24		in employment;
25		(5) an inventory of existing relevant programs
26		compiled by the Commission from materials submitted by

SB1739 Engrossed - 73 - LRB098 10559 AMC 40804 b
1		agencies;
2		(6) recommendations for expanding, discontinuing, or
3		redirecting existing programs or adding new programs to
4		better serve the Latino community; and
5		(7) recommendations of best practices and public and
6		private sector roles in implementing the comprehensive
7		statewide economic development strategy.
8		In developing the biennial statewide economic development
9		strategy, goals, objectives, priorities, and recommendations,
10		the Commission shall consult, collaborate, and coordinate with
11		relevant State agencies, private sector business, nonprofit
12		organizations involved in economic development, trade
13		associations, associate development organizations, and
14		relevant local organizations in order to avoid duplication of
15		effort.
16		State agencies shall cooperate with the Commission and
17		provide information as the Commission may reasonably request.
18		The Commission shall review and make budget
19		recommendations to the Governor's Office of Management and
20		Budget and the General Assembly in areas relating to the
21		economic development in the State's Latino community.
22		The Commission shall evaluate its own performance on a
23		regular basis.
24		The Commission may accept gifts, grants, donations,
25		sponsorships, or contributions from any federal, State, or
26		local governmental agency or program, or any private source,

SB1739 Engrossed - 74 - LRB098 10559 AMC 40804 b
1		and expend the same for any purpose consistent with this
2		Section.
3		(b) The Commission shall consist of 12 voting members,
4		appointed by the Governor, 4 of whom shall be appointed to
5		serve an initial term of one year, 4 of whom shall be appointed
6		to serve an initial term of 2 years, and 4 of whom shall be
7		appointed to serve an initial term of 3 years. After the
8		initial term, each member shall be appointed to a term of 3
9		years. Members of the Commission shall serve at the pleasure of
10		the Governor for not more than 2 consecutive 3-year terms. In
11		appointing members, the Governor shall appoint individuals
12		from the following private industry sectors:
13		(1) production agriculture;
14		(2) at least 2 individuals from manufacturing, one of
15		whom shall represent a company with no more than 75
16		employees;
17		(3) transportation, construction, and logistics;
18		(4) travel and tourism;
19		(5) financial services and insurance;
20		(6) information technology and communications; and
21		(7) biotechnology.
22		The members of the Commission shall choose a member to
23		serve as chair of the Commission. The members of the Commission
24		shall be representative, to the extent possible, of the various
25		geographic areas of the State. The Director shall serve as an
26		ad hoc nonvoting member of the Commission. Vacancies shall be

SB1739 Engrossed - 75 - LRB098 10559 AMC 40804 b
1		filled in the same manner as the original appointments. The
2		members of the Commission shall serve without compensation.
3		(c) The Commission shall meet at least 4 times per year,
4		with at least one meeting each calendar quarter, at the call of
5		the director or 4 voting members of the Commission. The staff
6		and support for the Commission shall be provided by the
7		Department.
8		(d) The Commission and Department are encouraged to involve
9		other essential groups in the work of the Commission,
10		including, but not limited to:
11		(1) public universities;
12		(2) community colleges;
13		(3) other educational institutions; and
14		(4) the Department of Labor.
15		(e) The Commission shall make recommendations, which must
16		be approved by a majority of the members of the Commission, to
17		the Department concerning the award of grants from amounts
18		appropriated to the Department from the Latino Community
19		Economic Development Fund, a special fund in the State
20		treasury. The Department shall make grants to public or private
21		entities submitting proposals to the Commission to assist in
22		the economic development of the Latino community. Grants may be
23		used by these entities only for those purposes conditioned with
24		the grant. The Commission shall coordinate with the Department
25		to develop grant criteria.
26		(f) For the purposes of this Section:

SB1739 Engrossed - 76 - LRB098 10559 AMC 40804 b
1		"Department" means the Department of Commerce and Economic
2		Development.
3		"Director" means the Director of Commerce and Economic
4		Development.
5		"Educational institutions" means nonprofit public and
6		private colleges, community colleges, State colleges, and
7		universities in this State.
8		Section 90-8. The Illinois Lottery Law is amended by
9		changing Section 9.1 as follows:
10		(20 ILCS 1605/9.1)
11		Sec. 9.1. Private manager and management agreement.
12		(a) As used in this Section:
13		"Offeror" means a person or group of persons that responds
14		to a request for qualifications under this Section.
15		"Request for qualifications" means all materials and
16		documents prepared by the Department to solicit the following
17		from offerors:
18		(1) Statements of qualifications.
19		(2) Proposals to enter into a management agreement,
20		including the identity of any prospective vendor or vendors
21		that the offeror intends to initially engage to assist the
22		offeror in performing its obligations under the management
23		agreement.
24		"Final offer" means the last proposal submitted by an

SB1739 Engrossed - 77 - LRB098 10559 AMC 40804 b
1		offeror in response to the request for qualifications,
2		including the identity of any prospective vendor or vendors
3		that the offeror intends to initially engage to assist the
4		offeror in performing its obligations under the management
5		agreement.
6		"Final offeror" means the offeror ultimately selected by
7		the Governor to be the private manager for the Lottery under
8		subsection (h) of this Section.
9		(b) By September 15, 2010, the Governor shall select a
10		private manager for the total management of the Lottery with
11		integrated functions, such as lottery game design, supply of
12		goods and services, and advertising and as specified in this
13		Section.
14		(c) Pursuant to the terms of this subsection, the
15		Department shall endeavor to expeditiously terminate the
16		existing contracts in support of the Lottery in effect on the
17		effective date of this amendatory Act of the 96th General
18		Assembly in connection with the selection of the private
19		manager. As part of its obligation to terminate these contracts
20		and select the private manager, the Department shall establish
21		a mutually agreeable timetable to transfer the functions of
22		existing contractors to the private manager so that existing
23		Lottery operations are not materially diminished or impaired
24		during the transition. To that end, the Department shall do the
25		following:
26		(1) where such contracts contain a provision

SB1739 Engrossed - 78 - LRB098 10559 AMC 40804 b
1		authorizing termination upon notice, the Department shall
2		provide notice of termination to occur upon the mutually
3		agreed timetable for transfer of functions;
4		(2) upon the expiration of any initial term or renewal
5		term of the current Lottery contracts, the Department shall
6		not renew such contract for a term extending beyond the
7		mutually agreed timetable for transfer of functions; or
8		(3) in the event any current contract provides for
9		termination of that contract upon the implementation of a
10		contract with the private manager, the Department shall
11		perform all necessary actions to terminate the contract on
12		the date that coincides with the mutually agreed timetable
13		for transfer of functions.
14		If the contracts to support the current operation of the
15		Lottery in effect on the effective date of this amendatory Act
16		of the 96th General Assembly are not subject to termination as
17		provided for in this subsection (c), then the Department may
18		include a provision in the contract with the private manager
19		specifying a mutually agreeable methodology for incorporation.
20		(c-5) The Department shall include provisions in the
21		management agreement whereby the private manager shall, for a
22		fee, and pursuant to a contract negotiated with the Department
23		(the "Employee Use Contract"), utilize the services of current
24		Department employees to assist in the administration and
25		operation of the Lottery. The Department shall be the employer
26		of all such bargaining unit employees assigned to perform such

SB1739 Engrossed - 79 - LRB098 10559 AMC 40804 b
1		work for the private manager, and such employees shall be State
2		employees, as defined by the Personnel Code. Department
3		employees shall operate under the same employment policies,
4		rules, regulations, and procedures, as other employees of the
5		Department. In addition, neither historical representation
6		rights under the Illinois Public Labor Relations Act, nor
7		existing collective bargaining agreements, shall be disturbed
8		by the management agreement with the private manager for the
9		management of the Lottery.
10		(d) The management agreement with the private manager shall
11		include all of the following:
12		(1) A term not to exceed 10 years, including any
13		renewals.
14		(2) A provision specifying that the Department:
15		(A) shall exercise actual control over all
16		significant business decisions;
17		(A-5) has the authority to direct or countermand
18		operating decisions by the private manager at any time;
19		(B) has ready access at any time to information
20		regarding Lottery operations;
21		(C) has the right to demand and receive information
22		from the private manager concerning any aspect of the
23		Lottery operations at any time; and
24		(D) retains ownership of all trade names,
25		trademarks, and intellectual property associated with
26		the Lottery.

SB1739 Engrossed - 80 - LRB098 10559 AMC 40804 b
1		(3) A provision imposing an affirmative duty on the
2		private manager to provide the Department with material
3		information and with any information the private manager
4		reasonably believes the Department would want to know to
5		enable the Department to conduct the Lottery.
6		(4) A provision requiring the private manager to
7		provide the Department with advance notice of any operating
8		decision that bears significantly on the public interest,
9		including, but not limited to, decisions on the kinds of
10		games to be offered to the public and decisions affecting
11		the relative risk and reward of the games being offered, so
12		the Department has a reasonable opportunity to evaluate and
13		countermand that decision.
14		(5) A provision providing for compensation of the
15		private manager that may consist of, among other things, a
16		fee for services and a performance based bonus as
17		consideration for managing the Lottery, including terms
18		that may provide the private manager with an increase in
19		compensation if Lottery revenues grow by a specified
20		percentage in a given year.
21		(6) (Blank).
22		(7) A provision requiring the deposit of all Lottery
23		proceeds to be deposited into the State Lottery Fund except
24		as otherwise provided in Section 20 of this Act.
25		(8) A provision requiring the private manager to locate
26		its principal office within the State.

SB1739 Engrossed - 81 - LRB098 10559 AMC 40804 b
1		(8-5) A provision encouraging that at least 20% of the
2		cost of contracts entered into for goods and services by
3		the private manager in connection with its management of
4		the Lottery, other than contracts with sales agents or
5		technical advisors, be awarded to businesses that are a
6		minority owned business, a female owned business, or a
7		business owned by a person with disability, as those terms
8		are defined in the Business Enterprise for Minorities,
9		Females, and Persons with Disabilities Act.
10		(9) A requirement that so long as the private manager
11		complies with all the conditions of the agreement under the
12		oversight of the Department, the private manager shall have
13		the following duties and obligations with respect to the
14		management of the Lottery:
15		(A) The right to use equipment and other assets
16		used in the operation of the Lottery.
17		(B) The rights and obligations under contracts
18		with retailers and vendors.
19		(C) The implementation of a comprehensive security
20		program by the private manager.
21		(D) The implementation of a comprehensive system
22		of internal audits.
23		(E) The implementation of a program by the private
24		manager to curb compulsive gambling by persons playing
25		the Lottery.
26		(F) A system for determining (i) the type of

SB1739 Engrossed - 82 - LRB098 10559 AMC 40804 b
1		Lottery games, (ii) the method of selecting winning
2		tickets, (iii) the manner of payment of prizes to
3		holders of winning tickets, (iv) the frequency of
4		drawings of winning tickets, (v) the method to be used
5		in selling tickets, (vi) a system for verifying the
6		validity of tickets claimed to be winning tickets,
7		(vii) the basis upon which retailer commissions are
8		established by the manager, and (viii) minimum
9		payouts.
10		(10) A requirement that advertising and promotion must
11		be consistent with Section 7.8a of this Act.
12		(11) A requirement that the private manager market the
13		Lottery to those residents who are new, infrequent, or
14		lapsed players of the Lottery, especially those who are
15		most likely to make regular purchases on the Internet as
16		permitted by law.
17		(12) A code of ethics for the private manager's
18		officers and employees.
19		(13) A requirement that the Department monitor and
20		oversee the private manager's practices and take action
21		that the Department considers appropriate to ensure that
22		the private manager is in compliance with the terms of the
23		management agreement, while allowing the manager, unless
24		specifically prohibited by law or the management
25		agreement, to negotiate and sign its own contracts with
26		vendors.

SB1739 Engrossed - 83 - LRB098 10559 AMC 40804 b
1		(14) A provision requiring the private manager to
2		periodically file, at least on an annual basis, appropriate
3		financial statements in a form and manner acceptable to the
4		Department.
5		(15) Cash reserves requirements.
6		(16) Procedural requirements for obtaining the prior
7		approval of the Department when a management agreement or
8		an interest in a management agreement is sold, assigned,
9		transferred, or pledged as collateral to secure financing.
10		(17) Grounds for the termination of the management
11		agreement by the Department or the private manager.
12		(18) Procedures for amendment of the agreement.
13		(19) A provision requiring the private manager to
14		engage in an open and competitive bidding process for any
15		procurement having a cost in excess of $50,000 that is not
16		a part of the private manager's final offer. The process
17		shall favor the selection of a vendor deemed to have
18		submitted a proposal that provides the Lottery with the
19		best overall value. The process shall not be subject to the
20		provisions of the Illinois Procurement Code, unless
21		specifically required by the management agreement.
22		(20) The transition of rights and obligations,
23		including any associated equipment or other assets used in
24		the operation of the Lottery, from the manager to any
25		successor manager of the lottery, including the
26		Department, following the termination of or foreclosure

SB1739 Engrossed - 84 - LRB098 10559 AMC 40804 b
1		upon the management agreement.
2		(21) Right of use of copyrights, trademarks, and
3		service marks held by the Department in the name of the
4		State. The agreement must provide that any use of them by
5		the manager shall only be for the purpose of fulfilling its
6		obligations under the management agreement during the term
7		of the agreement.
8		(22) The disclosure of any information requested by the
9		Department to enable it to comply with the reporting
10		requirements and information requests provided for under
11		subsection (p) of this Section.
12		(e) Notwithstanding any other law to the contrary, the
13		Department shall select a private manager through a competitive
14		request for qualifications process consistent with Section
15		20-35 of the Illinois Procurement Code, which shall take into
16		account:
17		(1) the offeror's ability to market the Lottery to
18		those residents who are new, infrequent, or lapsed players
19		of the Lottery, especially those who are most likely to
20		make regular purchases on the Internet;
21		(2) the offeror's ability to address the State's
22		concern with the social effects of gambling on those who
23		can least afford to do so;
24		(3) the offeror's ability to provide the most
25		successful management of the Lottery for the benefit of the
26		people of the State based on current and past business

SB1739 Engrossed - 85 - LRB098 10559 AMC 40804 b
1		practices or plans of the offeror; and
2		(4) the offeror's poor or inadequate past performance
3		in servicing, equipping, operating or managing a lottery on
4		behalf of Illinois, another State or foreign government and
5		attracting persons who are not currently regular players of
6		a lottery.
7		(f) The Department may retain the services of an advisor or
8		advisors with significant experience in financial services or
9		the management, operation, and procurement of goods, services,
10		and equipment for a government-run lottery to assist in the
11		preparation of the terms of the request for qualifications and
12		selection of the private manager. Any prospective advisor
13		seeking to provide services under this subsection (f) shall
14		disclose any material business or financial relationship
15		during the past 3 years with any potential offeror, or with a
16		contractor or subcontractor presently providing goods,
17		services, or equipment to the Department to support the
18		Lottery. The Department shall evaluate the material business or
19		financial relationship of each prospective advisor. The
20		Department shall not select any prospective advisor with a
21		substantial business or financial relationship that the
22		Department deems to impair the objectivity of the services to
23		be provided by the prospective advisor. During the course of
24		the advisor's engagement by the Department, and for a period of
25		one year thereafter, the advisor shall not enter into any
26		business or financial relationship with any offeror or any

SB1739 Engrossed - 86 - LRB098 10559 AMC 40804 b
1		vendor identified to assist an offeror in performing its
2		obligations under the management agreement. Any advisor
3		retained by the Department shall be disqualified from being an
4		offeror. The Department shall not include terms in the request
5		for qualifications that provide a material advantage whether
6		directly or indirectly to any potential offeror, or any
7		contractor or subcontractor presently providing goods,
8		services, or equipment to the Department to support the
9		Lottery, including terms contained in previous responses to
10		requests for proposals or qualifications submitted to
11		Illinois, another State or foreign government when those terms
12		are uniquely associated with a particular potential offeror,
13		contractor, or subcontractor. The request for proposals
14		offered by the Department on December 22, 2008 as
15		"LOT08GAMESYS" and reference number "22016176" is declared
16		void.
17		(g) The Department shall select at least 2 offerors as
18		finalists to potentially serve as the private manager no later
19		than August 9, 2010. Upon making preliminary selections, the
20		Department shall schedule a public hearing on the finalists'
21		proposals and provide public notice of the hearing at least 7
22		calendar days before the hearing. The notice must include all
23		of the following:
24		(1) The date, time, and place of the hearing.
25		(2) The subject matter of the hearing.
26		(3) A brief description of the management agreement to

SB1739 Engrossed - 87 - LRB098 10559 AMC 40804 b
1		be awarded.
2		(4) The identity of the offerors that have been
3		selected as finalists to serve as the private manager.
4		(5) The address and telephone number of the Department.
5		(h) At the public hearing, the Department shall (i) provide
6		sufficient time for each finalist to present and explain its
7		proposal to the Department and the Governor or the Governor's
8		designee, including an opportunity to respond to questions
9		posed by the Department, Governor, or designee and (ii) allow
10		the public and non-selected offerors to comment on the
11		presentations. The Governor or a designee shall attend the
12		public hearing. After the public hearing, the Department shall
13		have 14 calendar days to recommend to the Governor whether a
14		management agreement should be entered into with a particular
15		finalist. After reviewing the Department's recommendation, the
16		Governor may accept or reject the Department's recommendation,
17		and shall select a final offeror as the private manager by
18		publication of a notice in the Illinois Procurement Bulletin on
19		or before September 15, 2010. The Governor shall include in the
20		notice a detailed explanation and the reasons why the final
21		offeror is superior to other offerors and will provide
22		management services in a manner that best achieves the
23		objectives of this Section. The Governor shall also sign the
24		management agreement with the private manager.
25		(i) Any action to contest the private manager selected by
26		the Governor under this Section must be brought within 7

SB1739 Engrossed - 88 - LRB098 10559 AMC 40804 b
1		calendar days after the publication of the notice of the
2		designation of the private manager as provided in subsection
3		(h) of this Section.
4		(j) The Lottery shall remain, for so long as a private
5		manager manages the Lottery in accordance with provisions of
6		this Act, a Lottery conducted by the State, and the State shall
7		not be authorized to sell or transfer the Lottery to a third
8		party.
9		(k) Any tangible personal property used exclusively in
10		connection with the lottery that is owned by the Department and
11		leased to the private manager shall be owned by the Department
12		in the name of the State and shall be considered to be public
13		property devoted to an essential public and governmental
14		function.
15		(l) The Department may exercise any of its powers under
16		this Section or any other law as necessary or desirable for the
17		execution of the Department's powers under this Section.
18		(m) Neither this Section nor any management agreement
19		entered into under this Section prohibits the General Assembly
20		from authorizing forms of gambling that are not in direct
21		competition with the Lottery. The forms of gambling authorized
22		by this amendatory Act of the 98th General Assembly constitute
23		authorized forms of gambling that are not in direct competition
24		with the Lottery.
25		(n) The private manager shall be subject to a complete
26		investigation in the third, seventh, and tenth years of the

SB1739 Engrossed - 89 - LRB098 10559 AMC 40804 b
1		agreement (if the agreement is for a 10-year term) by the
2		Department in cooperation with the Auditor General to determine
3		whether the private manager has complied with this Section and
4		the management agreement. The private manager shall bear the
5		cost of an investigation or reinvestigation of the private
6		manager under this subsection.
7		(o) The powers conferred by this Section are in addition
8		and supplemental to the powers conferred by any other law. If
9		any other law or rule is inconsistent with this Section,
10		including, but not limited to, provisions of the Illinois
11		Procurement Code, then this Section controls as to any
12		management agreement entered into under this Section. This
13		Section and any rules adopted under this Section contain full
14		and complete authority for a management agreement between the
15		Department and a private manager. No law, procedure,
16		proceeding, publication, notice, consent, approval, order, or
17		act by the Department or any other officer, Department, agency,
18		or instrumentality of the State or any political subdivision is
19		required for the Department to enter into a management
20		agreement under this Section. This Section contains full and
21		complete authority for the Department to approve any contracts
22		entered into by a private manager with a vendor providing
23		goods, services, or both goods and services to the private
24		manager under the terms of the management agreement, including
25		subcontractors of such vendors.
26		Upon receipt of a written request from the Chief

SB1739 Engrossed - 90 - LRB098 10559 AMC 40804 b
1		Procurement Officer, the Department shall provide to the Chief
2		Procurement Officer a complete and un-redacted copy of the
3		management agreement or any contract that is subject to the
4		Department's approval authority under this subsection (o). The
5		Department shall provide a copy of the agreement or contract to
6		the Chief Procurement Officer in the time specified by the
7		Chief Procurement Officer in his or her written request, but no
8		later than 5 business days after the request is received by the
9		Department. The Chief Procurement Officer must retain any
10		portions of the management agreement or of any contract
11		designated by the Department as confidential, proprietary, or
12		trade secret information in complete confidence pursuant to
13		subsection (g) of Section 7 of the Freedom of Information Act.
14		The Department shall also provide the Chief Procurement Officer
15		with reasonable advance written notice of any contract that is
16		pending Department approval.
17		Notwithstanding any other provision of this Section to the
18		contrary, the Chief Procurement Officer shall adopt
19		administrative rules, including emergency rules, to establish
20		a procurement process to select a successor private manager if
21		a private management agreement has been terminated. The
22		selection process shall at a minimum take into account the
23		criteria set forth in items (1) through (4) of subsection (e)
24		of this Section and may include provisions consistent with
25		subsections (f), (g), (h), and (i) of this Section. The Chief
26		Procurement Officer shall also implement and administer the

SB1739 Engrossed - 91 - LRB098 10559 AMC 40804 b
1		adopted selection process upon the termination of a private
2		management agreement. The Department, after the Chief
3		Procurement Officer certifies that the procurement process has
4		been followed in accordance with the rules adopted under this
5		subsection (o), shall select a final offeror as the private
6		manager and sign the management agreement with the private
7		manager.
8		Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and
9		21.8, the Department shall distribute all proceeds of lottery
10		tickets and shares sold in the following priority and manner:
11		(1) The payment of prizes and retailer bonuses.
12		(2) The payment of costs incurred in the operation and
13		administration of the Lottery, including the payment of
14		sums due to the private manager under the management
15		agreement with the Department.
16		(3) On the last day of each month or as soon thereafter
17		as possible, the State Comptroller shall direct and the
18		State Treasurer shall transfer from the State Lottery Fund
19		to the Common School Fund an amount that is equal to the
20		proceeds transferred in the corresponding month of fiscal
21		year 2009, as adjusted for inflation, to the Common School
22		Fund.
23		(4) On or before the last day of each fiscal year,
24		deposit any remaining proceeds, subject to payments under
25		items (1), (2), and (3) into the Capital Projects Fund each
26		fiscal year.

SB1739 Engrossed - 92 - LRB098 10559 AMC 40804 b
1		(p) The Department shall be subject to the following
2		reporting and information request requirements:
3		(1) the Department shall submit written quarterly
4		reports to the Governor and the General Assembly on the
5		activities and actions of the private manager selected
6		under this Section;
7		(2) upon request of the Chief Procurement Officer, the
8		Department shall promptly produce information related to
9		the procurement activities of the Department and the
10		private manager requested by the Chief Procurement
11		Officer; the Chief Procurement Officer must retain
12		confidential, proprietary, or trade secret information
13		designated by the Department in complete confidence
14		pursuant to subsection (g) of Section 7 of the Freedom of
15		Information Act; and
16		(3) at least 30 days prior to the beginning of the
17		Department's fiscal year, the Department shall prepare an
18		annual written report on the activities of the private
19		manager selected under this Section and deliver that report
20		to the Governor and General Assembly.
21		(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
22		eff. 12-23-09; 97-464, eff. 8-19-11; revised 10-17-12.)
23		Section 90-10. The Department of Revenue Law of the Civil
24		Administrative Code of Illinois is amended by changing Section
25		2505-305 as follows:

SB1739 Engrossed - 93 - LRB098 10559 AMC 40804 b
1		(20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
2		Sec. 2505-305. Investigators.
3		(a) The Department has the power to appoint investigators
4		to conduct all investigations, searches, seizures, arrests,
5		and other duties imposed under the provisions of any law
6		administered by the Department. Except as provided in
7		subsection (c), these investigators have and may exercise all
8		the powers of peace officers solely for the purpose of
9		enforcing taxing measures administered by the Department.
10		(b) The Director must authorize to each investigator
11		employed under this Section and to any other employee of the
12		Department exercising the powers of a peace officer a distinct
13		badge that, on its face, (i) clearly states that the badge is
14		authorized by the Department and (ii) contains a unique
15		identifying number. No other badge shall be authorized by the
16		Department.
17		(c) The Department may enter into agreements with the
18		Illinois Gaming Board providing that investigators appointed
19		under this Section shall exercise the peace officer powers set
20		forth in paragraph (20.6) of subsection (c) of Section 5 of the
21		Illinois Riverboat Gambling Act.
22		(Source: P.A. 96-37, eff. 7-13-09.)
23		Section 90-12. The Illinois State Auditing Act is amended
24		by changing Section 3-1 as follows:

SB1739 Engrossed - 94 - LRB098 10559 AMC 40804 b
1		(30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
2		Sec. 3-1. Jurisdiction of Auditor General. The Auditor
3		General has jurisdiction over all State agencies to make post
4		audits and investigations authorized by or under this Act or
5		the Constitution.
6		The Auditor General has jurisdiction over local government
7		agencies and private agencies only:
8		(a) to make such post audits authorized by or under
9		this Act as are necessary and incidental to a post audit of
10		a State agency or of a program administered by a State
11		agency involving public funds of the State, but this
12		jurisdiction does not include any authority to review local
13		governmental agencies in the obligation, receipt,
14		expenditure or use of public funds of the State that are
15		granted without limitation or condition imposed by law,
16		other than the general limitation that such funds be used
17		for public purposes;
18		(b) to make investigations authorized by or under this
19		Act or the Constitution; and
20		(c) to make audits of the records of local government
21		agencies to verify actual costs of state-mandated programs
22		when directed to do so by the Legislative Audit Commission
23		at the request of the State Board of Appeals under the
24		State Mandates Act.
25		In addition to the foregoing, the Auditor General may

SB1739 Engrossed - 95 - LRB098 10559 AMC 40804 b
1		conduct an audit of the Metropolitan Pier and Exposition
2		Authority, the Regional Transportation Authority, the Suburban
3		Bus Division, the Commuter Rail Division and the Chicago
4		Transit Authority and any other subsidized carrier when
5		authorized by the Legislative Audit Commission. Such audit may
6		be a financial, management or program audit, or any combination
7		thereof.
8		The audit shall determine whether they are operating in
9		accordance with all applicable laws and regulations. Subject to
10		the limitations of this Act, the Legislative Audit Commission
11		may by resolution specify additional determinations to be
12		included in the scope of the audit.
13		In addition to the foregoing, the Auditor General must also
14		conduct a financial audit of the Illinois Sports Facilities
15		Authority's expenditures of public funds in connection with the
16		reconstruction, renovation, remodeling, extension, or
17		improvement of all or substantially all of any existing
18		"facility", as that term is defined in the Illinois Sports
19		Facilities Authority Act.
20		The Auditor General may also conduct an audit, when
21		authorized by the Legislative Audit Commission, of any hospital
22		which receives 10% or more of its gross revenues from payments
23		from the State of Illinois, Department of Healthcare and Family
24		Services (formerly Department of Public Aid), Medical
25		Assistance Program.
26		The Auditor General is authorized to conduct financial and

SB1739 Engrossed - 96 - LRB098 10559 AMC 40804 b
1		compliance audits of the Illinois Distance Learning Foundation
2		and the Illinois Conservation Foundation.
3		As soon as practical after the effective date of this
4		amendatory Act of 1995, the Auditor General shall conduct a
5		compliance and management audit of the City of Chicago and any
6		other entity with regard to the operation of Chicago O'Hare
7		International Airport, Chicago Midway Airport and Merrill C.
8		Meigs Field. The audit shall include, but not be limited to, an
9		examination of revenues, expenses, and transfers of funds;
10		purchasing and contracting policies and practices; staffing
11		levels; and hiring practices and procedures. When completed,
12		the audit required by this paragraph shall be distributed in
13		accordance with Section 3-14.
14		The Auditor General shall conduct a financial and
15		compliance and program audit of distributions from the
16		Municipal Economic Development Fund during the immediately
17		preceding calendar year pursuant to Section 8-403.1 of the
18		Public Utilities Act at no cost to the city, village, or
19		incorporated town that received the distributions.
20		The Auditor General must conduct an audit of the Health
21		Facilities and Services Review Board pursuant to Section 19.5
22		of the Illinois Health Facilities Planning Act.
23		The Auditor General must conduct an audit of the Chicago
24		Casino Development Authority pursuant to Section 1-60 of the
25		Chicago Casino Development Authority Act.
26		The Auditor General of the State of Illinois shall annually

SB1739 Engrossed - 97 - LRB098 10559 AMC 40804 b
1		conduct or cause to be conducted a financial and compliance
2		audit of the books and records of any county water commission
3		organized pursuant to the Water Commission Act of 1985 and
4		shall file a copy of the report of that audit with the Governor
5		and the Legislative Audit Commission. The filed audit shall be
6		open to the public for inspection. The cost of the audit shall
7		be charged to the county water commission in accordance with
8		Section 6z-27 of the State Finance Act. The county water
9		commission shall make available to the Auditor General its
10		books and records and any other documentation, whether in the
11		possession of its trustees or other parties, necessary to
12		conduct the audit required. These audit requirements apply only
13		through July 1, 2007.
14		The Auditor General must conduct audits of the Rend Lake
15		Conservancy District as provided in Section 25.5 of the River
16		Conservancy Districts Act.
17		The Auditor General must conduct financial audits of the
18		Southeastern Illinois Economic Development Authority as
19		provided in Section 70 of the Southeastern Illinois Economic
20		Development Authority Act.
21		The Auditor General shall conduct a compliance audit in
22		accordance with subsections (d) and (f) of Section 30 of the
23		Innovation Development and Economy Act.
24		(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
25		96-939, eff. 6-24-10.)

SB1739 Engrossed - 98 - LRB098 10559 AMC 40804 b
1		Section 90-15. The State Finance Act is amended by adding
2		Sections 5.826, 5.829, 5.830, 5.831, 6z-98, and 6z-99 as
3		follows:
4		(30 ILCS 105/5.826 new)
5		Sec. 5.826. The Gaming Facilities Fee Revenue Fund.
6		(30 ILCS 105/5.829 new)
7		Sec. 5.829. The State Fairgrounds Capital Improvement
8		Fund.
9		(30 ILCS 105/5.830 new)
10		Sec. 5.830. The Depressed Communities Economic Development
11		Fund.
12		(30 ILCS 105/5.831 new)
13		Sec. 5.831. The Latino Community Economic Development
14		Fund.
15		(30 ILCS 105/6z-98 new)
16		Sec. 6z-98. The Gaming Facilities Fee Revenue Fund.
17		(a) The Gaming Facilities Fee Revenue Fund is created as a
18		special fund in the State treasury.
19		(b) The revenues in the Fund shall be used, subject to
20		appropriation, by the Comptroller for the purpose of (i)
21		providing appropriations to the Illinois Gaming Board for the

SB1739 Engrossed - 99 - LRB098 10559 AMC 40804 b
1		administration and enforcement of the Illinois Gambling Act and
2		the applicable provisions of the Chicago Casino Development
3		Authority Act and (ii) payment of vouchers that are outstanding
4		for more than 60 days. Whenever practical, the Comptroller must
5		prioritize voucher payments for expenses related to medical
6		assistance under the Illinois Public Aid Code, the Children's
7		Health Insurance Program Act, the Covering ALL KIDS Health
8		Insurance Act, and the Senior Citizens and Disabled Persons
9		Property Tax Relief and Pharmaceutical Assistance Act.
10		(c) The Fund shall consist of fee revenues received
11		pursuant to subsection (e) of Section 1-45 of the Chicago
12		Casino Development Authority Act and pursuant to subsections
13		(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections
14		(b), (c), (d), and (k) of Section 7.6 of the Illinois Gambling
15		Act. All interest earned on moneys in the Fund shall be
16		deposited into the Fund.
17		(d) The Fund shall not be subject to administrative charges
18		or chargebacks, including, but not limited to, those authorized
19		under subsection (h) of Section 8 of this Act.
20		(30 ILCS 105/6z-99 new)
21		Sec. 6z-99. The State Fairgrounds Capital Improvement
22		Fund. There is created the State Fairgrounds Capital
23		Improvement Fund, a special fund in the State treasury. Moneys
24		in the Fund may be used by the Department of Agriculture,
25		subject to appropriation, solely for infrastructure

SB1739 Engrossed - 100 - LRB098 10559 AMC 40804 b
1		improvements to the Illinois State Fairgrounds in Sangamon
2		County, including, but not limited to, track surfaces (main
3		track and practice track), grandstands, audio and visual
4		systems, paddocks and barns and associated surface areas,
5		restroom facilities on the backstretch, and roadway surfaces
6		around the racing facility. In addition, no more than 5% of the
7		moneys annually transferred into the Fund may be used by the
8		Department for all costs associated with fire protection and
9		fire protection services for the Illinois State Fairgrounds.
10		The State Fairgrounds Capital Improvement Fund is not subject
11		to administrative chargebacks, including, but not limited to,
12		those authorized under Section 8h of the State Finance Act.
13		Section 90-20. The Illinois Income Tax Act is amended by
14		changing Sections 201, 303, 304 and 710 as follows:
15		(35 ILCS 5/201) (from Ch. 120, par. 2-201)
16		Sec. 201. Tax Imposed.
17		(a) In general. A tax measured by net income is hereby
18		imposed on every individual, corporation, trust and estate for
19		each taxable year ending after July 31, 1969 on the privilege
20		of earning or receiving income in or as a resident of this
21		State. Such tax shall be in addition to all other occupation or
22		privilege taxes imposed by this State or by any municipal
23		corporation or political subdivision thereof.
24		(b) Rates. The tax imposed by subsection (a) of this

SB1739 Engrossed - 101 - LRB098 10559 AMC 40804 b
1		Section shall be determined as follows, except as adjusted by
2		subsection (d-1):
3		(1) In the case of an individual, trust or estate, for
4		taxable years ending prior to July 1, 1989, an amount equal
5		to 2 1/2% of the taxpayer's net income for the taxable
6		year.
7		(2) In the case of an individual, trust or estate, for
8		taxable years beginning prior to July 1, 1989 and ending
9		after June 30, 1989, an amount equal to the sum of (i) 2
10		1/2% of the taxpayer's net income for the period prior to
11		July 1, 1989, as calculated under Section 202.3, and (ii)
12		3% of the taxpayer's net income for the period after June
13		30, 1989, as calculated under Section 202.3.
14		(3) In the case of an individual, trust or estate, for
15		taxable years beginning after June 30, 1989, and ending
16		prior to January 1, 2011, an amount equal to 3% of the
17		taxpayer's net income for the taxable year.
18		(4) In the case of an individual, trust, or estate, for
19		taxable years beginning prior to January 1, 2011, and
20		ending after December 31, 2010, an amount equal to the sum
21		of (i) 3% of the taxpayer's net income for the period prior
22		to January 1, 2011, as calculated under Section 202.5, and
23		(ii) 5% of the taxpayer's net income for the period after
24		December 31, 2010, as calculated under Section 202.5.
25		(5) In the case of an individual, trust, or estate, for
26		taxable years beginning on or after January 1, 2011, and

SB1739 Engrossed - 102 - LRB098 10559 AMC 40804 b
1		ending prior to January 1, 2015, an amount equal to 5% of
2		the taxpayer's net income for the taxable year.
3		(5.1) In the case of an individual, trust, or estate,
4		for taxable years beginning prior to January 1, 2015, and
5		ending after December 31, 2014, an amount equal to the sum
6		of (i) 5% of the taxpayer's net income for the period prior
7		to January 1, 2015, as calculated under Section 202.5, and
8		(ii) 3.75% of the taxpayer's net income for the period
9		after December 31, 2014, as calculated under Section 202.5.
10		(5.2) In the case of an individual, trust, or estate,
11		for taxable years beginning on or after January 1, 2015,
12		and ending prior to January 1, 2025, an amount equal to
13		3.75% of the taxpayer's net income for the taxable year.
14		(5.3) In the case of an individual, trust, or estate,
15		for taxable years beginning prior to January 1, 2025, and
16		ending after December 31, 2024, an amount equal to the sum
17		of (i) 3.75% of the taxpayer's net income for the period
18		prior to January 1, 2025, as calculated under Section
19		202.5, and (ii) 3.25% of the taxpayer's net income for the
20		period after December 31, 2024, as calculated under Section
21		202.5.
22		(5.4) In the case of an individual, trust, or estate,
23		for taxable years beginning on or after January 1, 2025, an
24		amount equal to 3.25% of the taxpayer's net income for the
25		taxable year.
26		(6) In the case of a corporation, for taxable years

SB1739 Engrossed - 103 - LRB098 10559 AMC 40804 b
1		ending prior to July 1, 1989, an amount equal to 4% of the
2		taxpayer's net income for the taxable year.
3		(7) In the case of a corporation, for taxable years
4		beginning prior to July 1, 1989 and ending after June 30,
5		1989, an amount equal to the sum of (i) 4% of the
6		taxpayer's net income for the period prior to July 1, 1989,
7		as calculated under Section 202.3, and (ii) 4.8% of the
8		taxpayer's net income for the period after June 30, 1989,
9		as calculated under Section 202.3.
10		(8) In the case of a corporation, for taxable years
11		beginning after June 30, 1989, and ending prior to January
12		1, 2011, an amount equal to 4.8% of the taxpayer's net
13		income for the taxable year.
14		(9) In the case of a corporation, for taxable years
15		beginning prior to January 1, 2011, and ending after
16		December 31, 2010, an amount equal to the sum of (i) 4.8%
17		of the taxpayer's net income for the period prior to
18		January 1, 2011, as calculated under Section 202.5, and
19		(ii) 7% of the taxpayer's net income for the period after
20		December 31, 2010, as calculated under Section 202.5.
21		(10) In the case of a corporation, for taxable years
22		beginning on or after January 1, 2011, and ending prior to
23		January 1, 2015, an amount equal to 7% of the taxpayer's
24		net income for the taxable year.
25		(11) In the case of a corporation, for taxable years
26		beginning prior to January 1, 2015, and ending after

SB1739 Engrossed - 104 - LRB098 10559 AMC 40804 b
1		December 31, 2014, an amount equal to the sum of (i) 7% of
2		the taxpayer's net income for the period prior to January
3		1, 2015, as calculated under Section 202.5, and (ii) 5.25%
4		of the taxpayer's net income for the period after December
5		31, 2014, as calculated under Section 202.5.
6		(12) In the case of a corporation, for taxable years
7		beginning on or after January 1, 2015, and ending prior to
8		January 1, 2025, an amount equal to 5.25% of the taxpayer's
9		net income for the taxable year.
10		(13) In the case of a corporation, for taxable years
11		beginning prior to January 1, 2025, and ending after
12		December 31, 2024, an amount equal to the sum of (i) 5.25%
13		of the taxpayer's net income for the period prior to
14		January 1, 2025, as calculated under Section 202.5, and
15		(ii) 4.8% of the taxpayer's net income for the period after
16		December 31, 2024, as calculated under Section 202.5.
17		(14) In the case of a corporation, for taxable years
18		beginning on or after January 1, 2025, an amount equal to
19		4.8% of the taxpayer's net income for the taxable year.
20		The rates under this subsection (b) are subject to the
21		provisions of Section 201.5.
22		(b-5) Surcharge; sale or exchange of assets, properties,
23		and intangibles of electronic gaming licensees. For each of
24		taxable years 2013 through 2021, a surcharge is imposed on all
25		taxpayers on income arising from the sale or exchange of
26		capital assets, depreciable business property, real property

SB1739 Engrossed - 105 - LRB098 10559 AMC 40804 b
1		used in the trade or business, and Section 197 intangibles (i)
2		of an organization licensee under the Illinois Horse Racing Act
3		of 1975 and (ii) of an electronic gaming licensee under the
4		Illinois Gambling Act. The amount of the surcharge is equal to
5		the amount of federal income tax liability for the taxable year
6		attributable to those sales and exchanges. The surcharge
7		imposed shall not apply if:
8		(1) the electronic gaming license, organization
9		license, or race track property is transferred as a result
10		of any of the following:
11		(A) bankruptcy, a receivership, or a debt
12		adjustment initiated by or against the initial
13		licensee or the substantial owners of the initial
14		licensee;
15		(B) cancellation, revocation, or termination of
16		any such license by the Illinois Gaming Board or the
17		Illinois Racing Board;
18		(C) a determination by the Illinois Gaming Board
19		that transfer of the license is in the best interests
20		of Illinois gaming;
21		(D) the death of an owner of the equity interest in
22		a licensee;
23		(E) the acquisition of a controlling interest in
24		the stock or substantially all of the assets of a
25		publicly traded company;
26		(F) a transfer by a parent company to a wholly

SB1739 Engrossed - 106 - LRB098 10559 AMC 40804 b
1		owned subsidiary; or
2		(G) the transfer or sale to or by one person to
3		another person where both persons were initial owners
4		of the license when the license was issued; or
5		(2) the controlling interest in the electronic gaming
6		license, organization license, or race track property is
7		transferred in a transaction to lineal descendants in which
8		no gain or loss is recognized or as a result of a
9		transaction in accordance with Section 351 of the Internal
10		Revenue Code in which no gain or loss is recognized; or
11		(3) live horse racing was not conducted in 2011 under a
12		license issued pursuant to the Illinois Horse Racing Act of
13		1975.
14		The transfer of an electronic gaming license, organization
15		license, or race track property by a person other than the
16		initial licensee to receive the electronic gaming license is
17		not subject to a surcharge. The Department shall adopt rules
18		necessary to implement and administer this subsection.
19		(c) Personal Property Tax Replacement Income Tax.
20		Beginning on July 1, 1979 and thereafter, in addition to such
21		income tax, there is also hereby imposed the Personal Property
22		Tax Replacement Income Tax measured by net income on every
23		corporation (including Subchapter S corporations), partnership
24		and trust, for each taxable year ending after June 30, 1979.
25		Such taxes are imposed on the privilege of earning or receiving
26		income in or as a resident of this State. The Personal Property

SB1739 Engrossed - 107 - LRB098 10559 AMC 40804 b
1		Tax Replacement Income Tax shall be in addition to the income
2		tax imposed by subsections (a) and (b) of this Section and in
3		addition to all other occupation or privilege taxes imposed by
4		this State or by any municipal corporation or political
5		subdivision thereof.
6		(d) Additional Personal Property Tax Replacement Income
7		Tax Rates. The personal property tax replacement income tax
8		imposed by this subsection and subsection (c) of this Section
9		in the case of a corporation, other than a Subchapter S
10		corporation and except as adjusted by subsection (d-1), shall
11		be an additional amount equal to 2.85% of such taxpayer's net
12		income for the taxable year, except that beginning on January
13		1, 1981, and thereafter, the rate of 2.85% specified in this
14		subsection shall be reduced to 2.5%, and in the case of a
15		partnership, trust or a Subchapter S corporation shall be an
16		additional amount equal to 1.5% of such taxpayer's net income
17		for the taxable year.
18		(d-1) Rate reduction for certain foreign insurers. In the
19		case of a foreign insurer, as defined by Section 35A-5 of the
20		Illinois Insurance Code, whose state or country of domicile
21		imposes on insurers domiciled in Illinois a retaliatory tax
22		(excluding any insurer whose premiums from reinsurance assumed
23		are 50% or more of its total insurance premiums as determined
24		under paragraph (2) of subsection (b) of Section 304, except
25		that for purposes of this determination premiums from
26		reinsurance do not include premiums from inter-affiliate

SB1739 Engrossed - 108 - LRB098 10559 AMC 40804 b
1		reinsurance arrangements), beginning with taxable years ending
2		on or after December 31, 1999, the sum of the rates of tax
3		imposed by subsections (b) and (d) shall be reduced (but not
4		increased) to the rate at which the total amount of tax imposed
5		under this Act, net of all credits allowed under this Act,
6		shall equal (i) the total amount of tax that would be imposed
7		on the foreign insurer's net income allocable to Illinois for
8		the taxable year by such foreign insurer's state or country of
9		domicile if that net income were subject to all income taxes
10		and taxes measured by net income imposed by such foreign
11		insurer's state or country of domicile, net of all credits
12		allowed or (ii) a rate of zero if no such tax is imposed on such
13		income by the foreign insurer's state of domicile. For the
14		purposes of this subsection (d-1), an inter-affiliate includes
15		a mutual insurer under common management.
16		(1) For the purposes of subsection (d-1), in no event
17		shall the sum of the rates of tax imposed by subsections
18		(b) and (d) be reduced below the rate at which the sum of:
19		(A) the total amount of tax imposed on such foreign
20		insurer under this Act for a taxable year, net of all
21		credits allowed under this Act, plus
22		(B) the privilege tax imposed by Section 409 of the
23		Illinois Insurance Code, the fire insurance company
24		tax imposed by Section 12 of the Fire Investigation
25		Act, and the fire department taxes imposed under
26		Section 11-10-1 of the Illinois Municipal Code,

SB1739 Engrossed - 109 - LRB098 10559 AMC 40804 b
1		equals 1.25% for taxable years ending prior to December 31,
2		2003, or 1.75% for taxable years ending on or after
3		December 31, 2003, of the net taxable premiums written for
4		the taxable year, as described by subsection (1) of Section
5		409 of the Illinois Insurance Code. This paragraph will in
6		no event increase the rates imposed under subsections (b)
7		and (d).
8		(2) Any reduction in the rates of tax imposed by this
9		subsection shall be applied first against the rates imposed
10		by subsection (b) and only after the tax imposed by
11		subsection (a) net of all credits allowed under this
12		Section other than the credit allowed under subsection (i)
13		has been reduced to zero, against the rates imposed by
14		subsection (d).
15		This subsection (d-1) is exempt from the provisions of
16		Section 250.
17		(e) Investment credit. A taxpayer shall be allowed a credit
18		against the Personal Property Tax Replacement Income Tax for
19		investment in qualified property.
20		(1) A taxpayer shall be allowed a credit equal to .5%
21		of the basis of qualified property placed in service during
22		the taxable year, provided such property is placed in
23		service on or after July 1, 1984. There shall be allowed an
24		additional credit equal to .5% of the basis of qualified
25		property placed in service during the taxable year,
26		provided such property is placed in service on or after

SB1739 Engrossed - 110 - LRB098 10559 AMC 40804 b
1		July 1, 1986, and the taxpayer's base employment within
2		Illinois has increased by 1% or more over the preceding
3		year as determined by the taxpayer's employment records
4		filed with the Illinois Department of Employment Security.
5		Taxpayers who are new to Illinois shall be deemed to have
6		met the 1% growth in base employment for the first year in
7		which they file employment records with the Illinois
8		Department of Employment Security. The provisions added to
9		this Section by Public Act 85-1200 (and restored by Public
10		Act 87-895) shall be construed as declaratory of existing
11		law and not as a new enactment. If, in any year, the
12		increase in base employment within Illinois over the
13		preceding year is less than 1%, the additional credit shall
14		be limited to that percentage times a fraction, the
15		numerator of which is .5% and the denominator of which is
16		1%, but shall not exceed .5%. The investment credit shall
17		not be allowed to the extent that it would reduce a
18		taxpayer's liability in any tax year below zero, nor may
19		any credit for qualified property be allowed for any year
20		other than the year in which the property was placed in
21		service in Illinois. For tax years ending on or after
22		December 31, 1987, and on or before December 31, 1988, the
23		credit shall be allowed for the tax year in which the
24		property is placed in service, or, if the amount of the
25		credit exceeds the tax liability for that year, whether it
26		exceeds the original liability or the liability as later

SB1739 Engrossed - 111 - LRB098 10559 AMC 40804 b
1		amended, such excess may be carried forward and applied to
2		the tax liability of the 5 taxable years following the
3		excess credit years if the taxpayer (i) makes investments
4		which cause the creation of a minimum of 2,000 full-time
5		equivalent jobs in Illinois, (ii) is located in an
6		enterprise zone established pursuant to the Illinois
7		Enterprise Zone Act and (iii) is certified by the
8		Department of Commerce and Community Affairs (now
9		Department of Commerce and Economic Opportunity) as
10		complying with the requirements specified in clause (i) and
11		(ii) by July 1, 1986. The Department of Commerce and
12		Community Affairs (now Department of Commerce and Economic
13		Opportunity) shall notify the Department of Revenue of all
14		such certifications immediately. For tax years ending
15		after December 31, 1988, the credit shall be allowed for
16		the tax year in which the property is placed in service,
17		or, if the amount of the credit exceeds the tax liability
18		for that year, whether it exceeds the original liability or
19		the liability as later amended, such excess may be carried
20		forward and applied to the tax liability of the 5 taxable
21		years following the excess credit years. The credit shall
22		be applied to the earliest year for which there is a
23		liability. If there is credit from more than one tax year
24		that is available to offset a liability, earlier credit
25		shall be applied first.
26		(2) The term "qualified property" means property

SB1739 Engrossed - 112 - LRB098 10559 AMC 40804 b
1		which:
2		(A) is tangible, whether new or used, including
3		buildings and structural components of buildings and
4		signs that are real property, but not including land or
5		improvements to real property that are not a structural
6		component of a building such as landscaping, sewer
7		lines, local access roads, fencing, parking lots, and
8		other appurtenances;
9		(B) is depreciable pursuant to Section 167 of the
10		Internal Revenue Code, except that "3-year property"
11		as defined in Section 168(c)(2)(A) of that Code is not
12		eligible for the credit provided by this subsection
13		(e);
14		(C) is acquired by purchase as defined in Section
15		179(d) of the Internal Revenue Code;
16		(D) is used in Illinois by a taxpayer who is
17		primarily engaged in manufacturing, or in mining coal
18		or fluorite, or in retailing, or was placed in service
19		on or after July 1, 2006 in a River Edge Redevelopment
20		Zone established pursuant to the River Edge
21		Redevelopment Zone Act; and
22		(E) has not previously been used in Illinois in
23		such a manner and by such a person as would qualify for
24		the credit provided by this subsection (e) or
25		subsection (f).
26		(3) For purposes of this subsection (e),

SB1739 Engrossed - 113 - LRB098 10559 AMC 40804 b
1		"manufacturing" means the material staging and production
2		of tangible personal property by procedures commonly
3		regarded as manufacturing, processing, fabrication, or
4		assembling which changes some existing material into new
5		shapes, new qualities, or new combinations. For purposes of
6		this subsection (e) the term "mining" shall have the same
7		meaning as the term "mining" in Section 613(c) of the
8		Internal Revenue Code. For purposes of this subsection (e),
9		the term "retailing" means the sale of tangible personal
10		property for use or consumption and not for resale, or
11		services rendered in conjunction with the sale of tangible
12		personal property for use or consumption and not for
13		resale. For purposes of this subsection (e), "tangible
14		personal property" has the same meaning as when that term
15		is used in the Retailers' Occupation Tax Act, and, for
16		taxable years ending after December 31, 2008, does not
17		include the generation, transmission, or distribution of
18		electricity.
19		(4) The basis of qualified property shall be the basis
20		used to compute the depreciation deduction for federal
21		income tax purposes.
22		(5) If the basis of the property for federal income tax
23		depreciation purposes is increased after it has been placed
24		in service in Illinois by the taxpayer, the amount of such
25		increase shall be deemed property placed in service on the
26		date of such increase in basis.

SB1739 Engrossed - 114 - LRB098 10559 AMC 40804 b
1		(6) The term "placed in service" shall have the same
2		meaning as under Section 46 of the Internal Revenue Code.
3		(7) If during any taxable year, any property ceases to
4		be qualified property in the hands of the taxpayer within
5		48 months after being placed in service, or the situs of
6		any qualified property is moved outside Illinois within 48
7		months after being placed in service, the Personal Property
8		Tax Replacement Income Tax for such taxable year shall be
9		increased. Such increase shall be determined by (i)
10		recomputing the investment credit which would have been
11		allowed for the year in which credit for such property was
12		originally allowed by eliminating such property from such
13		computation and, (ii) subtracting such recomputed credit
14		from the amount of credit previously allowed. For the
15		purposes of this paragraph (7), a reduction of the basis of
16		qualified property resulting from a redetermination of the
17		purchase price shall be deemed a disposition of qualified
18		property to the extent of such reduction.
19		(8) Unless the investment credit is extended by law,
20		the basis of qualified property shall not include costs
21		incurred after December 31, 2018, except for costs incurred
22		pursuant to a binding contract entered into on or before
23		December 31, 2018.
24		(9) Each taxable year ending before December 31, 2000,
25		a partnership may elect to pass through to its partners the
26		credits to which the partnership is entitled under this

SB1739 Engrossed - 115 - LRB098 10559 AMC 40804 b
1		subsection (e) for the taxable year. A partner may use the
2		credit allocated to him or her under this paragraph only
3		against the tax imposed in subsections (c) and (d) of this
4		Section. If the partnership makes that election, those
5		credits shall be allocated among the partners in the
6		partnership in accordance with the rules set forth in
7		Section 704(b) of the Internal Revenue Code, and the rules
8		promulgated under that Section, and the allocated amount of
9		the credits shall be allowed to the partners for that
10		taxable year. The partnership shall make this election on
11		its Personal Property Tax Replacement Income Tax return for
12		that taxable year. The election to pass through the credits
13		shall be irrevocable.
14		For taxable years ending on or after December 31, 2000,
15		a partner that qualifies its partnership for a subtraction
16		under subparagraph (I) of paragraph (2) of subsection (d)
17		of Section 203 or a shareholder that qualifies a Subchapter
18		S corporation for a subtraction under subparagraph (S) of
19		paragraph (2) of subsection (b) of Section 203 shall be
20		allowed a credit under this subsection (e) equal to its
21		share of the credit earned under this subsection (e) during
22		the taxable year by the partnership or Subchapter S
23		corporation, determined in accordance with the
24		determination of income and distributive share of income
25		under Sections 702 and 704 and Subchapter S of the Internal
26		Revenue Code. This paragraph is exempt from the provisions

SB1739 Engrossed - 116 - LRB098 10559 AMC 40804 b
1		of Section 250.
2		(f) Investment credit; Enterprise Zone; River Edge
3		Redevelopment Zone.
4		(1) A taxpayer shall be allowed a credit against the
5		tax imposed by subsections (a) and (b) of this Section for
6		investment in qualified property which is placed in service
7		in an Enterprise Zone created pursuant to the Illinois
8		Enterprise Zone Act or, for property placed in service on
9		or after July 1, 2006, a River Edge Redevelopment Zone
10		established pursuant to the River Edge Redevelopment Zone
11		Act. For partners, shareholders of Subchapter S
12		corporations, and owners of limited liability companies,
13		if the liability company is treated as a partnership for
14		purposes of federal and State income taxation, there shall
15		be allowed a credit under this subsection (f) to be
16		determined in accordance with the determination of income
17		and distributive share of income under Sections 702 and 704
18		and Subchapter S of the Internal Revenue Code. The credit
19		shall be .5% of the basis for such property. The credit
20		shall be available only in the taxable year in which the
21		property is placed in service in the Enterprise Zone or
22		River Edge Redevelopment Zone and shall not be allowed to
23		the extent that it would reduce a taxpayer's liability for
24		the tax imposed by subsections (a) and (b) of this Section
25		to below zero. For tax years ending on or after December
26		31, 1985, the credit shall be allowed for the tax year in

SB1739 Engrossed - 117 - LRB098 10559 AMC 40804 b
1		which the property is placed in service, or, if the amount
2		of the credit exceeds the tax liability for that year,
3		whether it exceeds the original liability or the liability
4		as later amended, such excess may be carried forward and
5		applied to the tax liability of the 5 taxable years
6		following the excess credit year. The credit shall be
7		applied to the earliest year for which there is a
8		liability. If there is credit from more than one tax year
9		that is available to offset a liability, the credit
10		accruing first in time shall be applied first.
11		(2) The term qualified property means property which:
12		(A) is tangible, whether new or used, including
13		buildings and structural components of buildings;
14		(B) is depreciable pursuant to Section 167 of the
15		Internal Revenue Code, except that "3-year property"
16		as defined in Section 168(c)(2)(A) of that Code is not
17		eligible for the credit provided by this subsection
18		(f);
19		(C) is acquired by purchase as defined in Section
20		179(d) of the Internal Revenue Code;
21		(D) is used in the Enterprise Zone or River Edge
22		Redevelopment Zone by the taxpayer; and
23		(E) has not been previously used in Illinois in
24		such a manner and by such a person as would qualify for
25		the credit provided by this subsection (f) or
26		subsection (e).

SB1739 Engrossed - 118 - LRB098 10559 AMC 40804 b
1		(3) The basis of qualified property shall be the basis
2		used to compute the depreciation deduction for federal
3		income tax purposes.
4		(4) If the basis of the property for federal income tax
5		depreciation purposes is increased after it has been placed
6		in service in the Enterprise Zone or River Edge
7		Redevelopment Zone by the taxpayer, the amount of such
8		increase shall be deemed property placed in service on the
9		date of such increase in basis.
10		(5) The term "placed in service" shall have the same
11		meaning as under Section 46 of the Internal Revenue Code.
12		(6) If during any taxable year, any property ceases to
13		be qualified property in the hands of the taxpayer within
14		48 months after being placed in service, or the situs of
15		any qualified property is moved outside the Enterprise Zone
16		or River Edge Redevelopment Zone within 48 months after
17		being placed in service, the tax imposed under subsections
18		(a) and (b) of this Section for such taxable year shall be
19		increased. Such increase shall be determined by (i)
20		recomputing the investment credit which would have been
21		allowed for the year in which credit for such property was
22		originally allowed by eliminating such property from such
23		computation, and (ii) subtracting such recomputed credit
24		from the amount of credit previously allowed. For the
25		purposes of this paragraph (6), a reduction of the basis of
26		qualified property resulting from a redetermination of the

SB1739 Engrossed - 119 - LRB098 10559 AMC 40804 b
1		purchase price shall be deemed a disposition of qualified
2		property to the extent of such reduction.
3		(7) There shall be allowed an additional credit equal
4		to 0.5% of the basis of qualified property placed in
5		service during the taxable year in a River Edge
6		Redevelopment Zone, provided such property is placed in
7		service on or after July 1, 2006, and the taxpayer's base
8		employment within Illinois has increased by 1% or more over
9		the preceding year as determined by the taxpayer's
10		employment records filed with the Illinois Department of
11		Employment Security. Taxpayers who are new to Illinois
12		shall be deemed to have met the 1% growth in base
13		employment for the first year in which they file employment
14		records with the Illinois Department of Employment
15		Security. If, in any year, the increase in base employment
16		within Illinois over the preceding year is less than 1%,
17		the additional credit shall be limited to that percentage
18		times a fraction, the numerator of which is 0.5% and the
19		denominator of which is 1%, but shall not exceed 0.5%.
20		(g) Jobs Tax Credit; River Edge Redevelopment Zone and
21		Foreign Trade Zone or Sub-Zone.
22		(1) A taxpayer conducting a trade or business, for
23		taxable years ending on or after December 31, 2006, in a
24		River Edge Redevelopment Zone or conducting a trade or
25		business in a federally designated Foreign Trade Zone or
26		Sub-Zone shall be allowed a credit against the tax imposed

SB1739 Engrossed - 120 - LRB098 10559 AMC 40804 b
1		by subsections (a) and (b) of this Section in the amount of
2		$500 per eligible employee hired to work in the zone during
3		the taxable year.
4		(2) To qualify for the credit:
5		(A) the taxpayer must hire 5 or more eligible
6		employees to work in a River Edge Redevelopment Zone or
7		federally designated Foreign Trade Zone or Sub-Zone
8		during the taxable year;
9		(B) the taxpayer's total employment within the
10		River Edge Redevelopment Zone or federally designated
11		Foreign Trade Zone or Sub-Zone must increase by 5 or
12		more full-time employees beyond the total employed in
13		that zone at the end of the previous tax year for which
14		a jobs tax credit under this Section was taken, or
15		beyond the total employed by the taxpayer as of
16		December 31, 1985, whichever is later; and
17		(C) the eligible employees must be employed 180
18		consecutive days in order to be deemed hired for
19		purposes of this subsection.
20		(3) An "eligible employee" means an employee who is:
21		(A) Certified by the Department of Commerce and
22		Economic Opportunity as "eligible for services"
23		pursuant to regulations promulgated in accordance with
24		Title II of the Job Training Partnership Act, Training
25		Services for the Disadvantaged or Title III of the Job
26		Training Partnership Act, Employment and Training

SB1739 Engrossed - 121 - LRB098 10559 AMC 40804 b
1		Assistance for Dislocated Workers Program.
2		(B) Hired after the River Edge Redevelopment Zone
3		or federally designated Foreign Trade Zone or Sub-Zone
4		was designated or the trade or business was located in
5		that zone, whichever is later.
6		(C) Employed in the River Edge Redevelopment Zone
7		or Foreign Trade Zone or Sub-Zone. An employee is
8		employed in a federally designated Foreign Trade Zone
9		or Sub-Zone if his services are rendered there or it is
10		the base of operations for the services performed.
11		(D) A full-time employee working 30 or more hours
12		per week.
13		(4) For tax years ending on or after December 31, 1985
14		and prior to December 31, 1988, the credit shall be allowed
15		for the tax year in which the eligible employees are hired.
16		For tax years ending on or after December 31, 1988, the
17		credit shall be allowed for the tax year immediately
18		following the tax year in which the eligible employees are
19		hired. If the amount of the credit exceeds the tax
20		liability for that year, whether it exceeds the original
21		liability or the liability as later amended, such excess
22		may be carried forward and applied to the tax liability of
23		the 5 taxable years following the excess credit year. The
24		credit shall be applied to the earliest year for which
25		there is a liability. If there is credit from more than one
26		tax year that is available to offset a liability, earlier

SB1739 Engrossed - 122 - LRB098 10559 AMC 40804 b
1		credit shall be applied first.
2		(5) The Department of Revenue shall promulgate such
3		rules and regulations as may be deemed necessary to carry
4		out the purposes of this subsection (g).
5		(6) The credit shall be available for eligible
6		employees hired on or after January 1, 1986.
7		(h) Investment credit; High Impact Business.
8		(1) Subject to subsections (b) and (b-5) of Section 5.5
9		of the Illinois Enterprise Zone Act, a taxpayer shall be
10		allowed a credit against the tax imposed by subsections (a)
11		and (b) of this Section for investment in qualified
12		property which is placed in service by a Department of
13		Commerce and Economic Opportunity designated High Impact
14		Business. The credit shall be .5% of the basis for such
15		property. The credit shall not be available (i) until the
16		minimum investments in qualified property set forth in
17		subdivision (a)(3)(A) of Section 5.5 of the Illinois
18		Enterprise Zone Act have been satisfied or (ii) until the
19		time authorized in subsection (b-5) of the Illinois
20		Enterprise Zone Act for entities designated as High Impact
21		Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
22		(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
23		Act, and shall not be allowed to the extent that it would
24		reduce a taxpayer's liability for the tax imposed by
25		subsections (a) and (b) of this Section to below zero. The
26		credit applicable to such investments shall be taken in the

SB1739 Engrossed - 123 - LRB098 10559 AMC 40804 b
1		taxable year in which such investments have been completed.
2		The credit for additional investments beyond the minimum
3		investment by a designated high impact business authorized
4		under subdivision (a)(3)(A) of Section 5.5 of the Illinois
5		Enterprise Zone Act shall be available only in the taxable
6		year in which the property is placed in service and shall
7		not be allowed to the extent that it would reduce a
8		taxpayer's liability for the tax imposed by subsections (a)
9		and (b) of this Section to below zero. For tax years ending
10		on or after December 31, 1987, the credit shall be allowed
11		for the tax year in which the property is placed in
12		service, or, if the amount of the credit exceeds the tax
13		liability for that year, whether it exceeds the original
14		liability or the liability as later amended, such excess
15		may be carried forward and applied to the tax liability of
16		the 5 taxable years following the excess credit year. The
17		credit shall be applied to the earliest year for which
18		there is a liability. If there is credit from more than one
19		tax year that is available to offset a liability, the
20		credit accruing first in time shall be applied first.
21		Changes made in this subdivision (h)(1) by Public Act
22		88-670 restore changes made by Public Act 85-1182 and
23		reflect existing law.
24		(2) The term qualified property means property which:
25		(A) is tangible, whether new or used, including
26		buildings and structural components of buildings;

SB1739 Engrossed - 124 - LRB098 10559 AMC 40804 b
1		(B) is depreciable pursuant to Section 167 of the
2		Internal Revenue Code, except that "3-year property"
3		as defined in Section 168(c)(2)(A) of that Code is not
4		eligible for the credit provided by this subsection
5		(h);
6		(C) is acquired by purchase as defined in Section
7		179(d) of the Internal Revenue Code; and
8		(D) is not eligible for the Enterprise Zone
9		Investment Credit provided by subsection (f) of this
10		Section.
11		(3) The basis of qualified property shall be the basis
12		used to compute the depreciation deduction for federal
13		income tax purposes.
14		(4) If the basis of the property for federal income tax
15		depreciation purposes is increased after it has been placed
16		in service in a federally designated Foreign Trade Zone or
17		Sub-Zone located in Illinois by the taxpayer, the amount of
18		such increase shall be deemed property placed in service on
19		the date of such increase in basis.
20		(5) The term "placed in service" shall have the same
21		meaning as under Section 46 of the Internal Revenue Code.
22		(6) If during any taxable year ending on or before
23		December 31, 1996, any property ceases to be qualified
24		property in the hands of the taxpayer within 48 months
25		after being placed in service, or the situs of any
26		qualified property is moved outside Illinois within 48

SB1739 Engrossed - 125 - LRB098 10559 AMC 40804 b
1		months after being placed in service, the tax imposed under
2		subsections (a) and (b) of this Section for such taxable
3		year shall be increased. Such increase shall be determined
4		by (i) recomputing the investment credit which would have
5		been allowed for the year in which credit for such property
6		was originally allowed by eliminating such property from
7		such computation, and (ii) subtracting such recomputed
8		credit from the amount of credit previously allowed. For
9		the purposes of this paragraph (6), a reduction of the
10		basis of qualified property resulting from a
11		redetermination of the purchase price shall be deemed a
12		disposition of qualified property to the extent of such
13		reduction.
14		(7) Beginning with tax years ending after December 31,
15		1996, if a taxpayer qualifies for the credit under this
16		subsection (h) and thereby is granted a tax abatement and
17		the taxpayer relocates its entire facility in violation of
18		the explicit terms and length of the contract under Section
19		18-183 of the Property Tax Code, the tax imposed under
20		subsections (a) and (b) of this Section shall be increased
21		for the taxable year in which the taxpayer relocated its
22		facility by an amount equal to the amount of credit
23		received by the taxpayer under this subsection (h).
24		(i) Credit for Personal Property Tax Replacement Income
25		Tax. For tax years ending prior to December 31, 2003, a credit
26		shall be allowed against the tax imposed by subsections (a) and

SB1739 Engrossed - 126 - LRB098 10559 AMC 40804 b
1		(b) of this Section for the tax imposed by subsections (c) and
2		(d) of this Section. This credit shall be computed by
3		multiplying the tax imposed by subsections (c) and (d) of this
4		Section by a fraction, the numerator of which is base income
5		allocable to Illinois and the denominator of which is Illinois
6		base income, and further multiplying the product by the tax
7		rate imposed by subsections (a) and (b) of this Section.
8		Any credit earned on or after December 31, 1986 under this
9		subsection which is unused in the year the credit is computed
10		because it exceeds the tax liability imposed by subsections (a)
11		and (b) for that year (whether it exceeds the original
12		liability or the liability as later amended) may be carried
13		forward and applied to the tax liability imposed by subsections
14		(a) and (b) of the 5 taxable years following the excess credit
15		year, provided that no credit may be carried forward to any
16		year ending on or after December 31, 2003. This credit shall be
17		applied first to the earliest year for which there is a
18		liability. If there is a credit under this subsection from more
19		than one tax year that is available to offset a liability the
20		earliest credit arising under this subsection shall be applied
21		first.
22		If, during any taxable year ending on or after December 31,
23		1986, the tax imposed by subsections (c) and (d) of this
24		Section for which a taxpayer has claimed a credit under this
25		subsection (i) is reduced, the amount of credit for such tax
26		shall also be reduced. Such reduction shall be determined by

SB1739 Engrossed - 127 - LRB098 10559 AMC 40804 b
1		recomputing the credit to take into account the reduced tax
2		imposed by subsections (c) and (d). If any portion of the
3		reduced amount of credit has been carried to a different
4		taxable year, an amended return shall be filed for such taxable
5		year to reduce the amount of credit claimed.
6		(j) Training expense credit. Beginning with tax years
7		ending on or after December 31, 1986 and prior to December 31,
8		2003, a taxpayer shall be allowed a credit against the tax
9		imposed by subsections (a) and (b) under this Section for all
10		amounts paid or accrued, on behalf of all persons employed by
11		the taxpayer in Illinois or Illinois residents employed outside
12		of Illinois by a taxpayer, for educational or vocational
13		training in semi-technical or technical fields or semi-skilled
14		or skilled fields, which were deducted from gross income in the
15		computation of taxable income. The credit against the tax
16		imposed by subsections (a) and (b) shall be 1.6% of such
17		training expenses. For partners, shareholders of subchapter S
18		corporations, and owners of limited liability companies, if the
19		liability company is treated as a partnership for purposes of
20		federal and State income taxation, there shall be allowed a
21		credit under this subsection (j) to be determined in accordance
22		with the determination of income and distributive share of
23		income under Sections 702 and 704 and subchapter S of the
24		Internal Revenue Code.
25		Any credit allowed under this subsection which is unused in
26		the year the credit is earned may be carried forward to each of

SB1739 Engrossed - 128 - LRB098 10559 AMC 40804 b
1		the 5 taxable years following the year for which the credit is
2		first computed until it is used. This credit shall be applied
3		first to the earliest year for which there is a liability. If
4		there is a credit under this subsection from more than one tax
5		year that is available to offset a liability the earliest
6		credit arising under this subsection shall be applied first. No
7		carryforward credit may be claimed in any tax year ending on or
8		after December 31, 2003.
9		(k) Research and development credit. For tax years ending
10		after July 1, 1990 and prior to December 31, 2003, and
11		beginning again for tax years ending on or after December 31,
12		2004, and ending prior to January 1, 2016, a taxpayer shall be
13		allowed a credit against the tax imposed by subsections (a) and
14		(b) of this Section for increasing research activities in this
15		State. The credit allowed against the tax imposed by
16		subsections (a) and (b) shall be equal to 6 1/2% of the
17		qualifying expenditures for increasing research activities in
18		this State. 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 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		For purposes of this subsection, "qualifying expenditures"

SB1739 Engrossed - 129 - LRB098 10559 AMC 40804 b
1		means the qualifying expenditures as defined for the federal
2		credit for increasing research activities which would be
3		allowable under Section 41 of the Internal Revenue Code and
4		which are conducted in this State, "qualifying expenditures for
5		increasing research activities in this State" means the excess
6		of qualifying expenditures for the taxable year in which
7		incurred over qualifying expenditures for the base period,
8		"qualifying expenditures for the base period" means the average
9		of the qualifying expenditures for each year in the base
10		period, and "base period" means the 3 taxable years immediately
11		preceding the taxable year for which the determination is being
12		made.
13		Any credit in excess of the tax liability for the taxable
14		year may be carried forward. A taxpayer may elect to have the
15		unused credit shown on its final completed return carried over
16		as a credit against the tax liability for the following 5
17		taxable years or until it has been fully used, whichever occurs
18		first; provided that no credit earned in a tax year ending
19		prior to December 31, 2003 may be carried forward to any year
20		ending on or after December 31, 2003.
21		If an unused credit is carried forward to a given year from
22		2 or more earlier years, that credit arising in the earliest
23		year will be applied first against the tax liability for the
24		given year. If a tax liability for the given year still
25		remains, the credit from the next earliest year will then be
26		applied, and so on, until all credits have been used or no tax

SB1739 Engrossed - 130 - LRB098 10559 AMC 40804 b
1		liability for the given year remains. Any remaining unused
2		credit or credits then will be carried forward to the next
3		following year in which a tax liability is incurred, except
4		that no credit can be carried forward to a year which is more
5		than 5 years after the year in which the expense for which the
6		credit is given was incurred.
7		No inference shall be drawn from this amendatory Act of the
8		91st General Assembly in construing this Section for taxable
9		years beginning before January 1, 1999.
10		(l) Environmental Remediation Tax Credit.
11		(i) For tax years ending after December 31, 1997 and on
12		or before December 31, 2001, a taxpayer shall be allowed a
13		credit against the tax imposed by subsections (a) and (b)
14		of this Section for certain amounts paid for unreimbursed
15		eligible remediation costs, as specified in this
16		subsection. For purposes of this Section, "unreimbursed
17		eligible remediation costs" means costs approved by the
18		Illinois Environmental Protection Agency ("Agency") under
19		Section 58.14 of the Environmental Protection Act that were
20		paid in performing environmental remediation at a site for
21		which a No Further Remediation Letter was issued by the
22		Agency and recorded under Section 58.10 of the
23		Environmental Protection Act. The credit must be claimed
24		for the taxable year in which Agency approval of the
25		eligible remediation costs is granted. The credit is not
26		available to any taxpayer if the taxpayer or any related

SB1739 Engrossed - 131 - LRB098 10559 AMC 40804 b
1		party caused or contributed to, in any material respect, a
2		release of regulated substances on, in, or under the site
3		that was identified and addressed by the remedial action
4		pursuant to the Site Remediation Program of the
5		Environmental Protection Act. After the Pollution Control
6		Board rules are adopted pursuant to the Illinois
7		Administrative Procedure Act for the administration and
8		enforcement of Section 58.9 of the Environmental
9		Protection Act, determinations as to credit availability
10		for purposes of this Section shall be made consistent with
11		those rules. For purposes of this Section, "taxpayer"
12		includes a person whose tax attributes the taxpayer has
13		succeeded to under Section 381 of the Internal Revenue Code
14		and "related party" includes the persons disallowed a
15		deduction for losses by paragraphs (b), (c), and (f)(1) of
16		Section 267 of the Internal Revenue Code by virtue of being
17		a related taxpayer, as well as any of its partners. The
18		credit allowed against the tax imposed by subsections (a)
19		and (b) shall be equal to 25% of the unreimbursed eligible
20		remediation costs in excess of $100,000 per site, except
21		that the $100,000 threshold shall not apply to any site
22		contained in an enterprise zone as determined by the
23		Department of Commerce and Community Affairs (now
24		Department of Commerce and Economic Opportunity). The
25		total credit allowed shall not exceed $40,000 per year with
26		a maximum total of $150,000 per site. For partners and

SB1739 Engrossed - 132 - LRB098 10559 AMC 40804 b
1		shareholders of subchapter S corporations, there shall be
2		allowed a credit under this subsection to be determined in
3		accordance with the determination of income and
4		distributive share of income under Sections 702 and 704 and
5		subchapter S of the Internal Revenue Code.
6		(ii) A credit allowed under this subsection that is
7		unused in the year the credit is earned may be carried
8		forward to each of the 5 taxable years following the year
9		for which the credit is first earned until it is used. The
10		term "unused credit" does not include any amounts of
11		unreimbursed eligible remediation costs in excess of the
12		maximum credit per site authorized under paragraph (i).
13		This credit shall be applied first to the earliest year for
14		which there is a liability. If there is a credit under this
15		subsection from more than one tax year that is available to
16		offset a liability, the earliest credit arising under this
17		subsection shall be applied first. A credit allowed under
18		this subsection may be sold to a buyer as part of a sale of
19		all or part of the remediation site for which the credit
20		was granted. The purchaser of a remediation site and the
21		tax credit shall succeed to the unused credit and remaining
22		carry-forward period of the seller. To perfect the
23		transfer, the assignor shall record the transfer in the
24		chain of title for the site and provide written notice to
25		the Director of the Illinois Department of Revenue of the
26		assignor's intent to sell the remediation site and the

SB1739 Engrossed - 133 - LRB098 10559 AMC 40804 b
1		amount of the tax credit to be transferred as a portion of
2		the sale. In no event may a credit be transferred to any
3		taxpayer if the taxpayer or a related party would not be
4		eligible under the provisions of subsection (i).
5		(iii) For purposes of this Section, the term "site"
6		shall have the same meaning as under Section 58.2 of the
7		Environmental Protection Act.
8		(m) Education expense credit. Beginning with tax years
9		ending after December 31, 1999, a taxpayer who is the custodian
10		of one or more qualifying pupils shall be allowed a credit
11		against the tax imposed by subsections (a) and (b) of this
12		Section for qualified education expenses incurred on behalf of
13		the qualifying pupils. The credit shall be equal to 25% of
14		qualified education expenses, but in no event may the total
15		credit under this subsection claimed by a family that is the
16		custodian of qualifying pupils exceed $500. In no event shall a
17		credit under this subsection reduce the taxpayer's liability
18		under this Act to less than zero. This subsection is exempt
19		from the provisions of Section 250 of this Act.
20		For purposes of this subsection:
21		"Qualifying pupils" means individuals who (i) are
22		residents of the State of Illinois, (ii) are under the age of
23		21 at the close of the school year for which a credit is
24		sought, and (iii) during the school year for which a credit is
25		sought were full-time pupils enrolled in a kindergarten through
26		twelfth grade education program at any school, as defined in

SB1739 Engrossed - 134 - LRB098 10559 AMC 40804 b
1		this subsection.
2		"Qualified education expense" means the amount incurred on
3		behalf of a qualifying pupil in excess of $250 for tuition,
4		book fees, and lab fees at the school in which the pupil is
5		enrolled during the regular school year.
6		"School" means any public or nonpublic elementary or
7		secondary school in Illinois that is in compliance with Title
8		VI of the Civil Rights Act of 1964 and attendance at which
9		satisfies the requirements of Section 26-1 of the School Code,
10		except that nothing shall be construed to require a child to
11		attend any particular public or nonpublic school to qualify for
12		the credit under this Section.
13		"Custodian" means, with respect to qualifying pupils, an
14		Illinois resident who is a parent, the parents, a legal
15		guardian, or the legal guardians of the qualifying pupils.
16		(n) River Edge Redevelopment Zone site remediation tax
17		credit.
18		(i) For tax years ending on or after December 31, 2006,
19		a taxpayer shall be allowed a credit against the tax
20		imposed by subsections (a) and (b) of this Section for
21		certain amounts paid for unreimbursed eligible remediation
22		costs, as specified in this subsection. For purposes of
23		this Section, "unreimbursed eligible remediation costs"
24		means costs approved by the Illinois Environmental
25		Protection Agency ("Agency") under Section 58.14a of the
26		Environmental Protection Act that were paid in performing

SB1739 Engrossed - 135 - LRB098 10559 AMC 40804 b
1		environmental remediation at a site within a River Edge
2		Redevelopment Zone for which a No Further Remediation
3		Letter was issued by the Agency and recorded under Section
4		58.10 of the Environmental Protection Act. The credit must
5		be claimed for the taxable year in which Agency approval of
6		the eligible remediation costs is granted. The credit is
7		not available to any taxpayer if the taxpayer or any
8		related party caused or contributed to, in any material
9		respect, a release of regulated substances on, in, or under
10		the site that was identified and addressed by the remedial
11		action pursuant to the Site Remediation Program of the
12		Environmental Protection Act. Determinations as to credit
13		availability for purposes of this Section shall be made
14		consistent with rules adopted by the Pollution Control
15		Board pursuant to the Illinois Administrative Procedure
16		Act for the administration and enforcement of Section 58.9
17		of the Environmental Protection Act. For purposes of this
18		Section, "taxpayer" includes a person whose tax attributes
19		the taxpayer has succeeded to under Section 381 of the
20		Internal Revenue Code and "related party" includes the
21		persons disallowed a deduction for losses by paragraphs
22		(b), (c), and (f)(1) of Section 267 of the Internal Revenue
23		Code by virtue of being a related taxpayer, as well as any
24		of its partners. The credit allowed against the tax imposed
25		by subsections (a) and (b) shall be equal to 25% of the
26		unreimbursed eligible remediation costs in excess of

SB1739 Engrossed - 136 - LRB098 10559 AMC 40804 b
1		$100,000 per site.
2		(ii) A credit allowed under this subsection that is
3		unused in the year the credit is earned may be carried
4		forward to each of the 5 taxable years following the year
5		for which the credit is first earned until it is used. This
6		credit shall be applied first to the earliest year for
7		which there is a liability. If there is a credit under this
8		subsection from more than one tax year that is available to
9		offset a liability, the earliest credit arising under this
10		subsection shall be applied first. A credit allowed under
11		this subsection may be sold to a buyer as part of a sale of
12		all or part of the remediation site for which the credit
13		was granted. The purchaser of a remediation site and the
14		tax credit shall succeed to the unused credit and remaining
15		carry-forward period of the seller. To perfect the
16		transfer, the assignor shall record the transfer in the
17		chain of title for the site and provide written notice to
18		the Director of the Illinois Department of Revenue of the
19		assignor's intent to sell the remediation site and the
20		amount of the tax credit to be transferred as a portion of
21		the sale. In no event may a credit be transferred to any
22		taxpayer if the taxpayer or a related party would not be
23		eligible under the provisions of subsection (i).
24		(iii) For purposes of this Section, the term "site"
25		shall have the same meaning as under Section 58.2 of the
26		Environmental Protection Act.

SB1739 Engrossed - 137 - LRB098 10559 AMC 40804 b
1		(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;
2		96-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.
3		1-13-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, eff.
4		8-7-12.)
5		(35 ILCS 5/303) (from Ch. 120, par. 3-303)
6		Sec. 303. (a) In general. Any item of capital gain or loss,
7		and any item of income from rents or royalties from real or
8		tangible personal property, interest, dividends, and patent or
9		copyright royalties, and prizes awarded under the Illinois
10		Lottery Law, and, for taxable years ending on or after December
11		31, 2013, wagering and gambling winnings from Illinois sources
12		as set forth in subsection (e-1) of this Section, to the extent
13		such item constitutes nonbusiness income, together with any
14		item of deduction directly allocable thereto, shall be
15		allocated by any person other than a resident as provided in
16		this Section.
17		(b) Capital gains and losses.
18		(1) Real property. Capital gains and losses from sales
19		or exchanges of real property are allocable to this State
20		if the property is located in this State.
21		(2) Tangible personal property. Capital gains and
22		losses from sales or exchanges of tangible personal
23		property are allocable to this State if, at the time of
24		such sale or exchange:
25		(A) The property had its situs in this State; or

SB1739 Engrossed - 138 - LRB098 10559 AMC 40804 b
1		(B) The taxpayer had its commercial domicile in
2		this State and was not taxable in the state in which
3		the property had its situs.
4		(3) Intangibles. Capital gains and losses from sales or
5		exchanges of intangible personal property are allocable to
6		this State if the taxpayer had its commercial domicile in
7		this State at the time of such sale or exchange.
8		(c) Rents and royalties.
9		(1) Real property. Rents and royalties from real
10		property are allocable to this State if the property is
11		located in this State.
12		(2) Tangible personal property. Rents and royalties
13		from tangible personal property are allocable to this
14		State:
15		(A) If and to the extent that the property is
16		utilized in this State; or
17		(B) In their entirety if, at the time such rents or
18		royalties were paid or accrued, the taxpayer had its
19		commercial domicile in this State and was not organized
20		under the laws of or taxable with respect to such rents
21		or royalties in the state in which the property was
22		utilized. The extent of utilization of tangible
23		personal property in a state is determined by
24		multiplying the rents or royalties derived from such
25		property by a fraction, the numerator of which is the
26		number of days of physical location of the property in

SB1739 Engrossed - 139 - LRB098 10559 AMC 40804 b
1		the state during the rental or royalty period in the
2		taxable year and the denominator of which is the number
3		of days of physical location of the property everywhere
4		during all rental or royalty periods in the taxable
5		year. If the physical location of the property during
6		the rental or royalty period is unknown or
7		unascertainable by the taxpayer, tangible personal
8		property is utilized in the state in which the property
9		was located at the time the rental or royalty payer
10		obtained possession.
11		(d) Patent and copyright royalties.
12		(1) Allocation. Patent and copyright royalties are
13		allocable to this State:
14		(A) If and to the extent that the patent or
15		copyright is utilized by the payer in this State; or
16		(B) If and to the extent that the patent or
17		copyright is utilized by the payer in a state in which
18		the taxpayer is not taxable with respect to such
19		royalties and, at the time such royalties were paid or
20		accrued, the taxpayer had its commercial domicile in
21		this State.
22		(2) Utilization.
23		(A) A patent is utilized in a state to the extent
24		that it is employed in production, fabrication,
25		manufacturing or other processing in the state or to
26		the extent that a patented product is produced in the

SB1739 Engrossed - 140 - LRB098 10559 AMC 40804 b
1		state. If the basis of receipts from patent royalties
2		does not permit allocation to states or if the
3		accounting procedures do not reflect states of
4		utilization, the patent is utilized in this State if
5		the taxpayer has its commercial domicile in this State.
6		(B) A copyright is utilized in a state to the
7		extent that printing or other publication originates
8		in the state. If the basis of receipts from copyright
9		royalties does not permit allocation to states or if
10		the accounting procedures do not reflect states of
11		utilization, the copyright is utilized in this State if
12		the taxpayer has its commercial domicile in this State.
13		(e) Illinois lottery prizes. Prizes awarded under the
14		"Illinois Lottery Law", approved December 14, 1973, are
15		allocable to this State.
16		(e-1) Wagering and gambling winnings. Payments received in
17		taxable years ending on or after December 31, 2013 of winnings
18		from pari-mutuel wagering conducted at a wagering facility
19		licensed under the Illinois Horse Racing Act of 1975 and from
20		gambling games conducted on a riverboat or in a casino or
21		electronic gaming facility licensed under the Illinois
22		Gambling Act are allocable to this State.
23		(e-5) Unemployment benefits. Unemployment benefits paid by
24		the Illinois Department of Employment Security are allocable to
25		this State.
26		(f) Taxability in other state. For purposes of allocation

SB1739 Engrossed - 141 - LRB098 10559 AMC 40804 b
1		of income pursuant to this Section, a taxpayer is taxable in
2		another state if:
3		(1) In that state he is subject to a net income tax, a
4		franchise tax measured by net income, a franchise tax for
5		the privilege of doing business, or a corporate stock tax;
6		or
7		(2) That state has jurisdiction to subject the taxpayer
8		to a net income tax regardless of whether, in fact, the
9		state does or does not.
10		(g) Cross references.
11		(1) For allocation of interest and dividends by persons
12		other than residents, see Section 301(c)(2).
13		(2) For allocation of nonbusiness income by residents,
14		see Section 301(a).
15		(Source: P.A. 97-709, eff. 7-1-12.)
16		(35 ILCS 5/304) (from Ch. 120, par. 3-304)
17		Sec. 304. Business income of persons other than residents.
18		(a) In general. The business income of a person other than
19		a resident shall be allocated to this State if such person's
20		business income is derived solely from this State. If a person
21		other than a resident derives business income from this State
22		and one or more other states, then, for tax years ending on or
23		before December 30, 1998, and except as otherwise provided by
24		this Section, such person's business income shall be
25		apportioned to this State by multiplying the income by a

SB1739 Engrossed - 142 - LRB098 10559 AMC 40804 b
1		fraction, the numerator of which is the sum of the property
2		factor (if any), the payroll factor (if any) and 200% of the
3		sales factor (if any), and the denominator of which is 4
4		reduced by the number of factors other than the sales factor
5		which have a denominator of zero and by an additional 2 if the
6		sales factor has a denominator of zero. For tax years ending on
7		or after December 31, 1998, and except as otherwise provided by
8		this Section, persons other than residents who derive business
9		income from this State and one or more other states shall
10		compute their apportionment factor by weighting their
11		property, payroll, and sales factors as provided in subsection
12		(h) of this Section.
13		(1) Property factor.
14		(A) The property factor is a fraction, the numerator of
15		which is the average value of the person's real and
16		tangible personal property owned or rented and used in the
17		trade or business in this State during the taxable year and
18		the denominator of which is the average value of all the
19		person's real and tangible personal property owned or
20		rented and used in the trade or business during the taxable
21		year.
22		(B) Property owned by the person is valued at its
23		original cost. Property rented by the person is valued at 8
24		times the net annual rental rate. Net annual rental rate is
25		the annual rental rate paid by the person less any annual
26		rental rate received by the person from sub-rentals.

SB1739 Engrossed - 143 - LRB098 10559 AMC 40804 b
1		(C) The average value of property shall be determined
2		by averaging the values at the beginning and ending of the
3		taxable year but the Director may require the averaging of
4		monthly values during the taxable year if reasonably
5		required to reflect properly the average value of the
6		person's property.
7		(2) Payroll factor.
8		(A) The payroll factor is a fraction, the numerator of
9		which is the total amount paid in this State during the
10		taxable year by the person for compensation, and the
11		denominator of which is the total compensation paid
12		everywhere during the taxable year.
13		(B) Compensation is paid in this State if:
14		(i) The individual's service is performed entirely
15		within this State;
16		(ii) The individual's service is performed both
17		within and without this State, but the service
18		performed without this State is incidental to the
19		individual's service performed within this State; or
20		(iii) Some of the service is performed within this
21		State and either the base of operations, or if there is
22		no base of operations, the place from which the service
23		is directed or controlled is within this State, or the
24		base of operations or the place from which the service
25		is directed or controlled is not in any state in which
26		some part of the service is performed, but the

SB1739 Engrossed - 144 - LRB098 10559 AMC 40804 b
1		individual's residence is in this State.
2		(iv) Compensation paid to nonresident professional
3		athletes.
4		(a) General. The Illinois source income of a
5		nonresident individual who is a member of a
6		professional athletic team includes the portion of the
7		individual's total compensation for services performed
8		as a member of a professional athletic team during the
9		taxable year which the number of duty days spent within
10		this State performing services for the team in any
11		manner during the taxable year bears to the total
12		number of duty days spent both within and without this
13		State during the taxable year.
14		(b) Travel days. Travel days that do not involve
15		either a game, practice, team meeting, or other similar
16		team event are not considered duty days spent in this
17		State. However, such travel days are considered in the
18		total duty days spent both within and without this
19		State.
20		(c) Definitions. For purposes of this subpart
21		(iv):
22		(1) The term "professional athletic team"
23		includes, but is not limited to, any professional
24		baseball, basketball, football, soccer, or hockey
25		team.
26		(2) The term "member of a professional

SB1739 Engrossed - 145 - LRB098 10559 AMC 40804 b
1		athletic team" includes those employees who are
2		active players, players on the disabled list, and
3		any other persons required to travel and who travel
4		with and perform services on behalf of a
5		professional athletic team on a regular basis.
6		This includes, but is not limited to, coaches,
7		managers, and trainers.
8		(3) Except as provided in items (C) and (D) of
9		this subpart (3), the term "duty days" means all
10		days during the taxable year from the beginning of
11		the professional athletic team's official
12		pre-season training period through the last game
13		in which the team competes or is scheduled to
14		compete. Duty days shall be counted for the year in
15		which they occur, including where a team's
16		official pre-season training period through the
17		last game in which the team competes or is
18		scheduled to compete, occurs during more than one
19		tax year.
20		(A) Duty days shall also include days on
21		which a member of a professional athletic team
22		performs service for a team on a date that does
23		not fall within the foregoing period (e.g.,
24		participation in instructional leagues, the
25		"All Star Game", or promotional "caravans").
26		Performing a service for a professional

SB1739 Engrossed - 146 - LRB098 10559 AMC 40804 b
1		athletic team includes conducting training and
2		rehabilitation activities, when such
3		activities are conducted at team facilities.
4		(B) Also included in duty days are game
5		days, practice days, days spent at team
6		meetings, promotional caravans, preseason
7		training camps, and days served with the team
8		through all post-season games in which the team
9		competes or is scheduled to compete.
10		(C) Duty days for any person who joins a
11		team during the period from the beginning of
12		the professional athletic team's official
13		pre-season training period through the last
14		game in which the team competes, or is
15		scheduled to compete, shall begin on the day
16		that person joins the team. Conversely, duty
17		days for any person who leaves a team during
18		this period shall end on the day that person
19		leaves the team. Where a person switches teams
20		during a taxable year, a separate duty-day
21		calculation shall be made for the period the
22		person was with each team.
23		(D) Days for which a member of a
24		professional athletic team is not compensated
25		and is not performing services for the team in
26		any manner, including days when such member of

SB1739 Engrossed - 147 - LRB098 10559 AMC 40804 b
1		a professional athletic team has been
2		suspended without pay and prohibited from
3		performing any services for the team, shall not
4		be treated as duty days.
5		(E) Days for which a member of a
6		professional athletic team is on the disabled
7		list and does not conduct rehabilitation
8		activities at facilities of the team, and is
9		not otherwise performing services for the team
10		in Illinois, shall not be considered duty days
11		spent in this State. All days on the disabled
12		list, however, are considered to be included in
13		total duty days spent both within and without
14		this State.
15		(4) The term "total compensation for services
16		performed as a member of a professional athletic
17		team" means the total compensation received during
18		the taxable year for services performed:
19		(A) from the beginning of the official
20		pre-season training period through the last
21		game in which the team competes or is scheduled
22		to compete during that taxable year; and
23		(B) during the taxable year on a date which
24		does not fall within the foregoing period
25		(e.g., participation in instructional leagues,
26		the "All Star Game", or promotional caravans).

SB1739 Engrossed - 148 - LRB098 10559 AMC 40804 b
1		This compensation shall include, but is not
2		limited to, salaries, wages, bonuses as described
3		in this subpart, and any other type of compensation
4		paid during the taxable year to a member of a
5		professional athletic team for services performed
6		in that year. This compensation does not include
7		strike benefits, severance pay, termination pay,
8		contract or option year buy-out payments,
9		expansion or relocation payments, or any other
10		payments not related to services performed for the
11		team.
12		For purposes of this subparagraph, "bonuses"
13		included in "total compensation for services
14		performed as a member of a professional athletic
15		team" subject to the allocation described in
16		Section 302(c)(1) are: bonuses earned as a result
17		of play (i.e., performance bonuses) during the
18		season, including bonuses paid for championship,
19		playoff or "bowl" games played by a team, or for
20		selection to all-star league or other honorary
21		positions; and bonuses paid for signing a
22		contract, unless the payment of the signing bonus
23		is not conditional upon the signee playing any
24		games for the team or performing any subsequent
25		services for the team or even making the team, the
26		signing bonus is payable separately from the

SB1739 Engrossed - 149 - LRB098 10559 AMC 40804 b
1		salary and any other compensation, and the signing
2		bonus is nonrefundable.
3		(3) Sales factor.
4		(A) The sales factor is a fraction, the numerator of
5		which is the total sales of the person in this State during
6		the taxable year, and the denominator of which is the total
7		sales of the person everywhere during the taxable year.
8		(B) Sales of tangible personal property are in this
9		State if:
10		(i) The property is delivered or shipped to a
11		purchaser, other than the United States government,
12		within this State regardless of the f. o. b. point or
13		other conditions of the sale; or
14		(ii) The property is shipped from an office, store,
15		warehouse, factory or other place of storage in this
16		State and either the purchaser is the United States
17		government or the person is not taxable in the state of
18		the purchaser; provided, however, that premises owned
19		or leased by a person who has independently contracted
20		with the seller for the printing of newspapers,
21		periodicals or books shall not be deemed to be an
22		office, store, warehouse, factory or other place of
23		storage for purposes of this Section. Sales of tangible
24		personal property are not in this State if the seller
25		and purchaser would be members of the same unitary
26		business group but for the fact that either the seller

SB1739 Engrossed - 150 - LRB098 10559 AMC 40804 b
1		or purchaser is a person with 80% or more of total
2		business activity outside of the United States and the
3		property is purchased for resale.
4		(B-1) Patents, copyrights, trademarks, and similar
5		items of intangible personal property.
6		(i) Gross receipts from the licensing, sale, or
7		other disposition of a patent, copyright, trademark,
8		or similar item of intangible personal property, other
9		than gross receipts governed by paragraph (B-7) of this
10		item (3), are in this State to the extent the item is
11		utilized in this State during the year the gross
12		receipts are included in gross income.
13		(ii) Place of utilization.
14		(I) A patent is utilized in a state to the
15		extent that it is employed in production,
16		fabrication, manufacturing, or other processing in
17		the state or to the extent that a patented product
18		is produced in the state. If a patent is utilized
19		in more than one state, the extent to which it is
20		utilized in any one state shall be a fraction equal
21		to the gross receipts of the licensee or purchaser
22		from sales or leases of items produced,
23		fabricated, manufactured, or processed within that
24		state using the patent and of patented items
25		produced within that state, divided by the total of
26		such gross receipts for all states in which the

SB1739 Engrossed - 151 - LRB098 10559 AMC 40804 b
1		patent is utilized.
2		(II) A copyright is utilized in a state to the
3		extent that printing or other publication
4		originates in the state. If a copyright is utilized
5		in more than one state, the extent to which it is
6		utilized in any one state shall be a fraction equal
7		to the gross receipts from sales or licenses of
8		materials printed or published in that state
9		divided by the total of such gross receipts for all
10		states in which the copyright is utilized.
11		(III) Trademarks and other items of intangible
12		personal property governed by this paragraph (B-1)
13		are utilized in the state in which the commercial
14		domicile of the licensee or purchaser is located.
15		(iii) If the state of utilization of an item of
16		property governed by this paragraph (B-1) cannot be
17		determined from the taxpayer's books and records or
18		from the books and records of any person related to the
19		taxpayer within the meaning of Section 267(b) of the
20		Internal Revenue Code, 26 U.S.C. 267, the gross
21		receipts attributable to that item shall be excluded
22		from both the numerator and the denominator of the
23		sales factor.
24		(B-2) Gross receipts from the license, sale, or other
25		disposition of patents, copyrights, trademarks, and
26		similar items of intangible personal property, other than

SB1739 Engrossed - 152 - LRB098 10559 AMC 40804 b
1		gross receipts governed by paragraph (B-7) of this item
2		(3), may be included in the numerator or denominator of the
3		sales factor only if gross receipts from licenses, sales,
4		or other disposition of such items comprise more than 50%
5		of the taxpayer's total gross receipts included in gross
6		income during the tax year and during each of the 2
7		immediately preceding tax years; provided that, when a
8		taxpayer is a member of a unitary business group, such
9		determination shall be made on the basis of the gross
10		receipts of the entire unitary business group.
11		(B-5) For taxable years ending on or after December 31,
12		2008, except as provided in subsections (ii) through (vii),
13		receipts from the sale of telecommunications service or
14		mobile telecommunications service are in this State if the
15		customer's service address is in this State.
16		(i) For purposes of this subparagraph (B-5), the
17		following terms have the following meanings:
18		"Ancillary services" means services that are
19		associated with or incidental to the provision of
20		"telecommunications services", including but not
21		limited to "detailed telecommunications billing",
22		"directory assistance", "vertical service", and "voice
23		mail services".
24		"Air-to-Ground Radiotelephone service" means a
25		radio service, as that term is defined in 47 CFR 22.99,
26		in which common carriers are authorized to offer and

SB1739 Engrossed - 153 - LRB098 10559 AMC 40804 b
1		provide radio telecommunications service for hire to
2		subscribers in aircraft.
3		"Call-by-call Basis" means any method of charging
4		for telecommunications services where the price is
5		measured by individual calls.
6		"Communications Channel" means a physical or
7		virtual path of communications over which signals are
8		transmitted between or among customer channel
9		termination points.
10		"Conference bridging service" means an "ancillary
11		service" that links two or more participants of an
12		audio or video conference call and may include the
13		provision of a telephone number. "Conference bridging
14		service" does not include the "telecommunications
15		services" used to reach the conference bridge.
16		"Customer Channel Termination Point" means the
17		location where the customer either inputs or receives
18		the communications.
19		"Detailed telecommunications billing service"
20		means an "ancillary service" of separately stating
21		information pertaining to individual calls on a
22		customer's billing statement.
23		"Directory assistance" means an "ancillary
24		service" of providing telephone number information,
25		and/or address information.
26		"Home service provider" means the facilities based

SB1739 Engrossed - 154 - LRB098 10559 AMC 40804 b
1		carrier or reseller with which the customer contracts
2		for the provision of mobile telecommunications
3		services.
4		"Mobile telecommunications service" means
5		commercial mobile radio service, as defined in Section
6		20.3 of Title 47 of the Code of Federal Regulations as
7		in effect on June 1, 1999.
8		"Place of primary use" means the street address
9		representative of where the customer's use of the
10		telecommunications service primarily occurs, which
11		must be the residential street address or the primary
12		business street address of the customer. In the case of
13		mobile telecommunications services, "place of primary
14		use" must be within the licensed service area of the
15		home service provider.
16		"Post-paid telecommunication service" means the
17		telecommunications service obtained by making a
18		payment on a call-by-call basis either through the use
19		of a credit card or payment mechanism such as a bank
20		card, travel card, credit card, or debit card, or by
21		charge made to a telephone number which is not
22		associated with the origination or termination of the
23		telecommunications service. A post-paid calling
24		service includes telecommunications service, except a
25		prepaid wireless calling service, that would be a
26		prepaid calling service except it is not exclusively a

SB1739 Engrossed - 155 - LRB098 10559 AMC 40804 b
1		telecommunication service.
2		"Prepaid telecommunication service" means the
3		right to access exclusively telecommunications
4		services, which must be paid for in advance and which
5		enables the origination of calls using an access number
6		or authorization code, whether manually or
7		electronically dialed, and that is sold in
8		predetermined units or dollars of which the number
9		declines with use in a known amount.
10		"Prepaid Mobile telecommunication service" means a
11		telecommunications service that provides the right to
12		utilize mobile wireless service as well as other
13		non-telecommunication services, including but not
14		limited to ancillary services, which must be paid for
15		in advance that is sold in predetermined units or
16		dollars of which the number declines with use in a
17		known amount.
18		"Private communication service" means a
19		telecommunication service that entitles the customer
20		to exclusive or priority use of a communications
21		channel or group of channels between or among
22		termination points, regardless of the manner in which
23		such channel or channels are connected, and includes
24		switching capacity, extension lines, stations, and any
25		other associated services that are provided in
26		connection with the use of such channel or channels.

SB1739 Engrossed - 156 - LRB098 10559 AMC 40804 b
1		"Service address" means:
2		(a) The location of the telecommunications
3		equipment to which a customer's call is charged and
4		from which the call originates or terminates,
5		regardless of where the call is billed or paid;
6		(b) If the location in line (a) is not known,
7		service address means the origination point of the
8		signal of the telecommunications services first
9		identified by either the seller's
10		telecommunications system or in information
11		received by the seller from its service provider
12		where the system used to transport such signals is
13		not that of the seller; and
14		(c) If the locations in line (a) and line (b)
15		are not known, the service address means the
16		location of the customer's place of primary use.
17		"Telecommunications service" means the electronic
18		transmission, conveyance, or routing of voice, data,
19		audio, video, or any other information or signals to a
20		point, or between or among points. The term
21		"telecommunications service" includes such
22		transmission, conveyance, or routing in which computer
23		processing applications are used to act on the form,
24		code or protocol of the content for purposes of
25		transmission, conveyance or routing without regard to
26		whether such service is referred to as voice over

SB1739 Engrossed - 157 - LRB098 10559 AMC 40804 b
1		Internet protocol services or is classified by the
2		Federal Communications Commission as enhanced or value
3		added. "Telecommunications service" does not include:
4		(a) Data processing and information services
5		that allow data to be generated, acquired, stored,
6		processed, or retrieved and delivered by an
7		electronic transmission to a purchaser when such
8		purchaser's primary purpose for the underlying
9		transaction is the processed data or information;
10		(b) Installation or maintenance of wiring or
11		equipment on a customer's premises;
12		(c) Tangible personal property;
13		(d) Advertising, including but not limited to
14		directory advertising.
15		(e) Billing and collection services provided
16		to third parties;
17		(f) Internet access service;
18		(g) Radio and television audio and video
19		programming services, regardless of the medium,
20		including the furnishing of transmission,
21		conveyance and routing of such services by the
22		programming service provider. Radio and television
23		audio and video programming services shall include
24		but not be limited to cable service as defined in
25		47 USC 522(6) and audio and video programming
26		services delivered by commercial mobile radio

SB1739 Engrossed - 158 - LRB098 10559 AMC 40804 b
1		service providers, as defined in 47 CFR 20.3;
2		(h) "Ancillary services"; or
3		(i) Digital products "delivered
4		electronically", including but not limited to
5		software, music, video, reading materials or ring
6		tones.
7		"Vertical service" means an "ancillary service"
8		that is offered in connection with one or more
9		"telecommunications services", which offers advanced
10		calling features that allow customers to identify
11		callers and to manage multiple calls and call
12		connections, including "conference bridging services".
13		"Voice mail service" means an "ancillary service"
14		that enables the customer to store, send or receive
15		recorded messages. "Voice mail service" does not
16		include any "vertical services" that the customer may
17		be required to have in order to utilize the "voice mail
18		service".
19		(ii) Receipts from the sale of telecommunications
20		service sold on an individual call-by-call basis are in
21		this State if either of the following applies:
22		(a) The call both originates and terminates in
23		this State.
24		(b) The call either originates or terminates
25		in this State and the service address is located in
26		this State.

SB1739 Engrossed - 159 - LRB098 10559 AMC 40804 b
1		(iii) Receipts from the sale of postpaid
2		telecommunications service at retail are in this State
3		if the origination point of the telecommunication
4		signal, as first identified by the service provider's
5		telecommunication system or as identified by
6		information received by the seller from its service
7		provider if the system used to transport
8		telecommunication signals is not the seller's, is
9		located in this State.
10		(iv) Receipts from the sale of prepaid
11		telecommunications service or prepaid mobile
12		telecommunications service at retail are in this State
13		if the purchaser obtains the prepaid card or similar
14		means of conveyance at a location in this State.
15		Receipts from recharging a prepaid telecommunications
16		service or mobile telecommunications service is in
17		this State if the purchaser's billing information
18		indicates a location in this State.
19		(v) Receipts from the sale of private
20		communication services are in this State as follows:
21		(a) 100% of receipts from charges imposed at
22		each channel termination point in this State.
23		(b) 100% of receipts from charges for the total
24		channel mileage between each channel termination
25		point in this State.
26		(c) 50% of the total receipts from charges for

SB1739 Engrossed - 160 - LRB098 10559 AMC 40804 b
1		service segments when those segments are between 2
2		customer channel termination points, 1 of which is
3		located in this State and the other is located
4		outside of this State, which segments are
5		separately charged.
6		(d) The receipts from charges for service
7		segments with a channel termination point located
8		in this State and in two or more other states, and
9		which segments are not separately billed, are in
10		this State based on a percentage determined by
11		dividing the number of customer channel
12		termination points in this State by the total
13		number of customer channel termination points.
14		(vi) Receipts from charges for ancillary services
15		for telecommunications service sold to customers at
16		retail are in this State if the customer's primary
17		place of use of telecommunications services associated
18		with those ancillary services is in this State. If the
19		seller of those ancillary services cannot determine
20		where the associated telecommunications are located,
21		then the ancillary services shall be based on the
22		location of the purchaser.
23		(vii) Receipts to access a carrier's network or
24		from the sale of telecommunication services or
25		ancillary services for resale are in this State as
26		follows:

SB1739 Engrossed - 161 - LRB098 10559 AMC 40804 b
1		(a) 100% of the receipts from access fees
2		attributable to intrastate telecommunications
3		service that both originates and terminates in
4		this State.
5		(b) 50% of the receipts from access fees
6		attributable to interstate telecommunications
7		service if the interstate call either originates
8		or terminates in this State.
9		(c) 100% of the receipts from interstate end
10		user access line charges, if the customer's
11		service address is in this State. As used in this
12		subdivision, "interstate end user access line
13		charges" includes, but is not limited to, the
14		surcharge approved by the federal communications
15		commission and levied pursuant to 47 CFR 69.
16		(d) Gross receipts from sales of
17		telecommunication services or from ancillary
18		services for telecommunications services sold to
19		other telecommunication service providers for
20		resale shall be sourced to this State using the
21		apportionment concepts used for non-resale
22		receipts of telecommunications services if the
23		information is readily available to make that
24		determination. If the information is not readily
25		available, then the taxpayer may use any other
26		reasonable and consistent method.

SB1739 Engrossed - 162 - LRB098 10559 AMC 40804 b
1		(B-7) For taxable years ending on or after December 31,
2		2008, receipts from the sale of broadcasting services are
3		in this State if the broadcasting services are received in
4		this State. For purposes of this paragraph (B-7), the
5		following terms have the following meanings:
6		"Advertising revenue" means consideration received
7		by the taxpayer in exchange for broadcasting services
8		or allowing the broadcasting of commercials or
9		announcements in connection with the broadcasting of
10		film or radio programming, from sponsorships of the
11		programming, or from product placements in the
12		programming.
13		"Audience factor" means the ratio that the
14		audience or subscribers located in this State of a
15		station, a network, or a cable system bears to the
16		total audience or total subscribers for that station,
17		network, or cable system. The audience factor for film
18		or radio programming shall be determined by reference
19		to the books and records of the taxpayer or by
20		reference to published rating statistics provided the
21		method used by the taxpayer is consistently used from
22		year to year for this purpose and fairly represents the
23		taxpayer's activity in this State.
24		"Broadcast" or "broadcasting" or "broadcasting
25		services" means the transmission or provision of film
26		or radio programming, whether through the public

SB1739 Engrossed - 163 - LRB098 10559 AMC 40804 b
1		airwaves, by cable, by direct or indirect satellite
2		transmission, or by any other means of communication,
3		either through a station, a network, or a cable system.
4		"Film" or "film programming" means the broadcast
5		on television of any and all performances, events, or
6		productions, including but not limited to news,
7		sporting events, plays, stories, or other literary,
8		commercial, educational, or artistic works, either
9		live or through the use of video tape, disc, or any
10		other type of format or medium. Each episode of a
11		series of films produced for television shall
12		constitute separate "film" notwithstanding that the
13		series relates to the same principal subject and is
14		produced during one or more tax periods.
15		"Radio" or "radio programming" means the broadcast
16		on radio of any and all performances, events, or
17		productions, including but not limited to news,
18		sporting events, plays, stories, or other literary,
19		commercial, educational, or artistic works, either
20		live or through the use of an audio tape, disc, or any
21		other format or medium. Each episode in a series of
22		radio programming produced for radio broadcast shall
23		constitute a separate "radio programming"
24		notwithstanding that the series relates to the same
25		principal subject and is produced during one or more
26		tax periods.

SB1739 Engrossed - 164 - LRB098 10559 AMC 40804 b
1		(i) In the case of advertising revenue from
2		broadcasting, the customer is the advertiser and
3		the service is received in this State if the
4		commercial domicile of the advertiser is in this
5		State.
6		(ii) In the case where film or radio
7		programming is broadcast by a station, a network,
8		or a cable system for a fee or other remuneration
9		received from the recipient of the broadcast, the
10		portion of the service that is received in this
11		State is measured by the portion of the recipients
12		of the broadcast located in this State.
13		Accordingly, the fee or other remuneration for
14		such service that is included in the Illinois
15		numerator of the sales factor is the total of those
16		fees or other remuneration received from
17		recipients in Illinois. For purposes of this
18		paragraph, a taxpayer may determine the location
19		of the recipients of its broadcast using the
20		address of the recipient shown in its contracts
21		with the recipient or using the billing address of
22		the recipient in the taxpayer's records.
23		(iii) In the case where film or radio
24		programming is broadcast by a station, a network,
25		or a cable system for a fee or other remuneration
26		from the person providing the programming, the

SB1739 Engrossed - 165 - LRB098 10559 AMC 40804 b
1		portion of the broadcast service that is received
2		by such station, network, or cable system in this
3		State is measured by the portion of recipients of
4		the broadcast located in this State. Accordingly,
5		the amount of revenue related to such an
6		arrangement that is included in the Illinois
7		numerator of the sales factor is the total fee or
8		other total remuneration from the person providing
9		the programming related to that broadcast
10		multiplied by the Illinois audience factor for
11		that broadcast.
12		(iv) In the case where film or radio
13		programming is provided by a taxpayer that is a
14		network or station to a customer for broadcast in
15		exchange for a fee or other remuneration from that
16		customer the broadcasting service is received at
17		the location of the office of the customer from
18		which the services were ordered in the regular
19		course of the customer's trade or business.
20		Accordingly, in such a case the revenue derived by
21		the taxpayer that is included in the taxpayer's
22		Illinois numerator of the sales factor is the
23		revenue from such customers who receive the
24		broadcasting service in Illinois.
25		(v) In the case where film or radio programming
26		is provided by a taxpayer that is not a network or

SB1739 Engrossed - 166 - LRB098 10559 AMC 40804 b
1		station to another person for broadcasting in
2		exchange for a fee or other remuneration from that
3		person, the broadcasting service is received at
4		the location of the office of the customer from
5		which the services were ordered in the regular
6		course of the customer's trade or business.
7		Accordingly, in such a case the revenue derived by
8		the taxpayer that is included in the taxpayer's
9		Illinois numerator of the sales factor is the
10		revenue from such customers who receive the
11		broadcasting service in Illinois.
12		(B-8) For taxable years ending on or after December 31,
13		2013, gross receipts from winnings from pari-mutuel
14		wagering conducted at a wagering facility licensed under
15		the Illinois Horse Racing Act of 1975 or from winnings from
16		gambling games conducted on a riverboat or in a casino or
17		electronic gaming facility licensed under the Illinois
18		Gambling Act are in this State.
19		(C) For taxable years ending before December 31, 2008,
20		sales, other than sales governed by paragraphs (B), (B-1),
21		and (B-2), are in this State if:
22		(i) The income-producing activity is performed in
23		this State; or
24		(ii) The income-producing activity is performed
25		both within and without this State and a greater
26		proportion of the income-producing activity is

SB1739 Engrossed - 167 - LRB098 10559 AMC 40804 b
1		performed within this State than without this State,
2		based on performance costs.
3		(C-5) For taxable years ending on or after December 31,
4		2008, sales, other than sales governed by paragraphs (B),
5		(B-1), (B-2), (B-5), and (B-7), are in this State if any of
6		the following criteria are met:
7		(i) Sales from the sale or lease of real property
8		are in this State if the property is located in this
9		State.
10		(ii) Sales from the lease or rental of tangible
11		personal property are in this State if the property is
12		located in this State during the rental period. Sales
13		from the lease or rental of tangible personal property
14		that is characteristically moving property, including,
15		but not limited to, motor vehicles, rolling stock,
16		aircraft, vessels, or mobile equipment are in this
17		State to the extent that the property is used in this
18		State.
19		(iii) In the case of interest, net gains (but not
20		less than zero) and other items of income from
21		intangible personal property, the sale is in this State
22		if:
23		(a) in the case of a taxpayer who is a dealer
24		in the item of intangible personal property within
25		the meaning of Section 475 of the Internal Revenue
26		Code, the income or gain is received from a

SB1739 Engrossed - 168 - LRB098 10559 AMC 40804 b
1		customer in this State. For purposes of this
2		subparagraph, a customer is in this State if the
3		customer is an individual, trust or estate who is a
4		resident of this State and, for all other
5		customers, if the customer's commercial domicile
6		is in this State. Unless the dealer has actual
7		knowledge of the residence or commercial domicile
8		of a customer during a taxable year, the customer
9		shall be deemed to be a customer in this State if
10		the billing address of the customer, as shown in
11		the records of the dealer, is in this State; or
12		(b) in all other cases, if the
13		income-producing activity of the taxpayer is
14		performed in this State or, if the
15		income-producing activity of the taxpayer is
16		performed both within and without this State, if a
17		greater proportion of the income-producing
18		activity of the taxpayer is performed within this
19		State than in any other state, based on performance
20		costs.
21		(iv) Sales of services are in this State if the
22		services are received in this State. For the purposes
23		of this section, gross receipts from the performance of
24		services provided to a corporation, partnership, or
25		trust may only be attributed to a state where that
26		corporation, partnership, or trust has a fixed place of

SB1739 Engrossed - 169 - LRB098 10559 AMC 40804 b
1		business. If the state where the services are received
2		is not readily determinable or is a state where the
3		corporation, partnership, or trust receiving the
4		service does not have a fixed place of business, the
5		services shall be deemed to be received at the location
6		of the office of the customer from which the services
7		were ordered in the regular course of the customer's
8		trade or business. If the ordering office cannot be
9		determined, the services shall be deemed to be received
10		at the office of the customer to which the services are
11		billed. If the taxpayer is not taxable in the state in
12		which the services are received, the sale must be
13		excluded from both the numerator and the denominator of
14		the sales factor. The Department shall adopt rules
15		prescribing where specific types of service are
16		received, including, but not limited to, publishing,
17		and utility service.
18		(D) For taxable years ending on or after December 31,
19		1995, the following items of income shall not be included
20		in the numerator or denominator of the sales factor:
21		dividends; amounts included under Section 78 of the
22		Internal Revenue Code; and Subpart F income as defined in
23		Section 952 of the Internal Revenue Code. No inference
24		shall be drawn from the enactment of this paragraph (D) in
25		construing this Section for taxable years ending before
26		December 31, 1995.

SB1739 Engrossed - 170 - LRB098 10559 AMC 40804 b
1		(E) Paragraphs (B-1) and (B-2) shall apply to tax years
2		ending on or after December 31, 1999, provided that a
3		taxpayer may elect to apply the provisions of these
4		paragraphs to prior tax years. Such election shall be made
5		in the form and manner prescribed by the Department, shall
6		be irrevocable, and shall apply to all tax years; provided
7		that, if a taxpayer's Illinois income tax liability for any
8		tax year, as assessed under Section 903 prior to January 1,
9		1999, was computed in a manner contrary to the provisions
10		of paragraphs (B-1) or (B-2), no refund shall be payable to
11		the taxpayer for that tax year to the extent such refund is
12		the result of applying the provisions of paragraph (B-1) or
13		(B-2) retroactively. In the case of a unitary business
14		group, such election shall apply to all members of such
15		group for every tax year such group is in existence, but
16		shall not apply to any taxpayer for any period during which
17		that taxpayer is not a member of such group.
18		(b) Insurance companies.
19		(1) In general. Except as otherwise provided by
20		paragraph (2), business income of an insurance company for
21		a taxable year shall be apportioned to this State by
22		multiplying such income by a fraction, the numerator of
23		which is the direct premiums written for insurance upon
24		property or risk in this State, and the denominator of
25		which is the direct premiums written for insurance upon
26		property or risk everywhere. For purposes of this

SB1739 Engrossed - 171 - LRB098 10559 AMC 40804 b
1		subsection, the term "direct premiums written" means the
2		total amount of direct premiums written, assessments and
3		annuity considerations as reported for the taxable year on
4		the annual statement filed by the company with the Illinois
5		Director of Insurance in the form approved by the National
6		Convention of Insurance Commissioners or such other form as
7		may be prescribed in lieu thereof.
8		(2) Reinsurance. If the principal source of premiums
9		written by an insurance company consists of premiums for
10		reinsurance accepted by it, the business income of such
11		company shall be apportioned to this State by multiplying
12		such income by a fraction, the numerator of which is the
13		sum of (i) direct premiums written for insurance upon
14		property or risk in this State, plus (ii) premiums written
15		for reinsurance accepted in respect of property or risk in
16		this State, and the denominator of which is the sum of
17		(iii) direct premiums written for insurance upon property
18		or risk everywhere, plus (iv) premiums written for
19		reinsurance accepted in respect of property or risk
20		everywhere. For purposes of this paragraph, premiums
21		written for reinsurance accepted in respect of property or
22		risk in this State, whether or not otherwise determinable,
23		may, at the election of the company, be determined on the
24		basis of the proportion which premiums written for
25		reinsurance accepted from companies commercially domiciled
26		in Illinois bears to premiums written for reinsurance

SB1739 Engrossed - 172 - LRB098 10559 AMC 40804 b
1		accepted from all sources, or, alternatively, in the
2		proportion which the sum of the direct premiums written for
3		insurance upon property or risk in this State by each
4		ceding company from which reinsurance is accepted bears to
5		the sum of the total direct premiums written by each such
6		ceding company for the taxable year. The election made by a
7		company under this paragraph for its first taxable year
8		ending on or after December 31, 2011, shall be binding for
9		that company for that taxable year and for all subsequent
10		taxable years, and may be altered only with the written
11		permission of the Department, which shall not be
12		unreasonably withheld.
13		(c) Financial organizations.
14		(1) In general. For taxable years ending before
15		December 31, 2008, business income of a financial
16		organization shall be apportioned to this State by
17		multiplying such income by a fraction, the numerator of
18		which is its business income from sources within this
19		State, and the denominator of which is its business income
20		from all sources. For the purposes of this subsection, the
21		business income of a financial organization from sources
22		within this State is the sum of the amounts referred to in
23		subparagraphs (A) through (E) following, but excluding the
24		adjusted income of an international banking facility as
25		determined in paragraph (2):
26		(A) Fees, commissions or other compensation for

SB1739 Engrossed - 173 - LRB098 10559 AMC 40804 b
1		financial services rendered within this State;
2		(B) Gross profits from trading in stocks, bonds or
3		other securities managed within this State;
4		(C) Dividends, and interest from Illinois
5		customers, which are received within this State;
6		(D) Interest charged to customers at places of
7		business maintained within this State for carrying
8		debit balances of margin accounts, without deduction
9		of any costs incurred in carrying such accounts; and
10		(E) Any other gross income resulting from the
11		operation as a financial organization within this
12		State. In computing the amounts referred to in
13		paragraphs (A) through (E) of this subsection, any
14		amount received by a member of an affiliated group
15		(determined under Section 1504(a) of the Internal
16		Revenue Code but without reference to whether any such
17		corporation is an "includible corporation" under
18		Section 1504(b) of the Internal Revenue Code) from
19		another member of such group shall be included only to
20		the extent such amount exceeds expenses of the
21		recipient directly related thereto.
22		(2) International Banking Facility. For taxable years
23		ending before December 31, 2008:
24		(A) Adjusted Income. The adjusted income of an
25		international banking facility is its income reduced
26		by the amount of the floor amount.

SB1739 Engrossed - 174 - LRB098 10559 AMC 40804 b
1		(B) Floor Amount. The floor amount shall be the
2		amount, if any, determined by multiplying the income of
3		the international banking facility by a fraction, not
4		greater than one, which is determined as follows:
5		(i) The numerator shall be:
6		The average aggregate, determined on a
7		quarterly basis, of the financial organization's
8		loans to banks in foreign countries, to foreign
9		domiciled borrowers (except where secured
10		primarily by real estate) and to foreign
11		governments and other foreign official
12		institutions, as reported for its branches,
13		agencies and offices within the state on its
14		"Consolidated Report of Condition", Schedule A,
15		Lines 2.c., 5.b., and 7.a., which was filed with
16		the Federal Deposit Insurance Corporation and
17		other regulatory authorities, for the year 1980,
18		minus
19		The average aggregate, determined on a
20		quarterly basis, of such loans (other than loans of
21		an international banking facility), as reported by
22		the financial institution for its branches,
23		agencies and offices within the state, on the
24		corresponding Schedule and lines of the
25		Consolidated Report of Condition for the current
26		taxable year, provided, however, that in no case

SB1739 Engrossed - 175 - LRB098 10559 AMC 40804 b
1		shall the amount determined in this clause (the
2		subtrahend) exceed the amount determined in the
3		preceding clause (the minuend); and
4		(ii) the denominator shall be the average
5		aggregate, determined on a quarterly basis, of the
6		international banking facility's loans to banks in
7		foreign countries, to foreign domiciled borrowers
8		(except where secured primarily by real estate)
9		and to foreign governments and other foreign
10		official institutions, which were recorded in its
11		financial accounts for the current taxable year.
12		(C) Change to Consolidated Report of Condition and
13		in Qualification. In the event the Consolidated Report
14		of Condition which is filed with the Federal Deposit
15		Insurance Corporation and other regulatory authorities
16		is altered so that the information required for
17		determining the floor amount is not found on Schedule
18		A, lines 2.c., 5.b. and 7.a., the financial institution
19		shall notify the Department and the Department may, by
20		regulations or otherwise, prescribe or authorize the
21		use of an alternative source for such information. The
22		financial institution shall also notify the Department
23		should its international banking facility fail to
24		qualify as such, in whole or in part, or should there
25		be any amendment or change to the Consolidated Report
26		of Condition, as originally filed, to the extent such

SB1739 Engrossed - 176 - LRB098 10559 AMC 40804 b
1		amendment or change alters the information used in
2		determining the floor amount.
3		(3) For taxable years ending on or after December 31,
4		2008, the business income of a financial organization shall
5		be apportioned to this State by multiplying such income by
6		a fraction, the numerator of which is its gross receipts
7		from sources in this State or otherwise attributable to
8		this State's marketplace and the denominator of which is
9		its gross receipts everywhere during the taxable year.
10		"Gross receipts" for purposes of this subparagraph (3)
11		means gross income, including net taxable gain on
12		disposition of assets, including securities and money
13		market instruments, when derived from transactions and
14		activities in the regular course of the financial
15		organization's trade or business. The following examples
16		are illustrative:
17		(i) Receipts from the lease or rental of real or
18		tangible personal property are in this State if the
19		property is located in this State during the rental
20		period. Receipts from the lease or rental of tangible
21		personal property that is characteristically moving
22		property, including, but not limited to, motor
23		vehicles, rolling stock, aircraft, vessels, or mobile
24		equipment are from sources in this State to the extent
25		that the property is used in this State.
26		(ii) Interest income, commissions, fees, gains on

SB1739 Engrossed - 177 - LRB098 10559 AMC 40804 b
1		disposition, and other receipts from assets in the
2		nature of loans that are secured primarily by real
3		estate or tangible personal property are from sources
4		in this State if the security is located in this State.
5		(iii) Interest income, commissions, fees, gains on
6		disposition, and other receipts from consumer loans
7		that are not secured by real or tangible personal
8		property are from sources in this State if the debtor
9		is a resident of this State.
10		(iv) Interest income, commissions, fees, gains on
11		disposition, and other receipts from commercial loans
12		and installment obligations that are not secured by
13		real or tangible personal property are from sources in
14		this State if the proceeds of the loan are to be
15		applied in this State. If it cannot be determined where
16		the funds are to be applied, the income and receipts
17		are from sources in this State if the office of the
18		borrower from which the loan was negotiated in the
19		regular course of business is located in this State. If
20		the location of this office cannot be determined, the
21		income and receipts shall be excluded from the
22		numerator and denominator of the sales factor.
23		(v) Interest income, fees, gains on disposition,
24		service charges, merchant discount income, and other
25		receipts from credit card receivables are from sources
26		in this State if the card charges are regularly billed

SB1739 Engrossed - 178 - LRB098 10559 AMC 40804 b
1		to a customer in this State.
2		(vi) Receipts from the performance of services,
3		including, but not limited to, fiduciary, advisory,
4		and brokerage services, are in this State if the
5		services are received in this State within the meaning
6		of subparagraph (a)(3)(C-5)(iv) of this Section.
7		(vii) Receipts from the issuance of travelers
8		checks and money orders are from sources in this State
9		if the checks and money orders are issued from a
10		location within this State.
11		(viii) Receipts from investment assets and
12		activities and trading assets and activities are
13		included in the receipts factor as follows:
14		(1) Interest, dividends, net gains (but not
15		less than zero) and other income from investment
16		assets and activities from trading assets and
17		activities shall be included in the receipts
18		factor. Investment assets and activities and
19		trading assets and activities include but are not
20		limited to: investment securities; trading account
21		assets; federal funds; securities purchased and
22		sold under agreements to resell or repurchase;
23		options; futures contracts; forward contracts;
24		notional principal contracts such as swaps;
25		equities; and foreign currency transactions. With
26		respect to the investment and trading assets and

SB1739 Engrossed - 179 - LRB098 10559 AMC 40804 b
1		activities described in subparagraphs (A) and (B)
2		of this paragraph, the receipts factor shall
3		include the amounts described in such
4		subparagraphs.
5		(A) The receipts factor shall include the
6		amount by which interest from federal funds
7		sold and securities purchased under resale
8		agreements exceeds interest expense on federal
9		funds purchased and securities sold under
10		repurchase agreements.
11		(B) The receipts factor shall include the
12		amount by which interest, dividends, gains and
13		other income from trading assets and
14		activities, including but not limited to
15		assets and activities in the matched book, in
16		the arbitrage book, and foreign currency
17		transactions, exceed amounts paid in lieu of
18		interest, amounts paid in lieu of dividends,
19		and losses from such assets and activities.
20		(2) The numerator of the receipts factor
21		includes interest, dividends, net gains (but not
22		less than zero), and other income from investment
23		assets and activities and from trading assets and
24		activities described in paragraph (1) of this
25		subsection that are attributable to this State.
26		(A) The amount of interest, dividends, net

SB1739 Engrossed - 180 - LRB098 10559 AMC 40804 b
1		gains (but not less than zero), and other
2		income from investment assets and activities
3		in the investment account to be attributed to
4		this State and included in the numerator is
5		determined by multiplying all such income from
6		such assets and activities by a fraction, the
7		numerator of which is the gross income from
8		such assets and activities which are properly
9		assigned to a fixed place of business of the
10		taxpayer within this State and the denominator
11		of which is the gross income from all such
12		assets and activities.
13		(B) The amount of interest from federal
14		funds sold and purchased and from securities
15		purchased under resale agreements and
16		securities sold under repurchase agreements
17		attributable to this State and included in the
18		numerator is determined by multiplying the
19		amount described in subparagraph (A) of
20		paragraph (1) of this subsection from such
21		funds and such securities by a fraction, the
22		numerator of which is the gross income from
23		such funds and such securities which are
24		properly assigned to a fixed place of business
25		of the taxpayer within this State and the
26		denominator of which is the gross income from

SB1739 Engrossed - 181 - LRB098 10559 AMC 40804 b
1		all such funds and such securities.
2		(C) The amount of interest, dividends,
3		gains, and other income from trading assets and
4		activities, including but not limited to
5		assets and activities in the matched book, in
6		the arbitrage book and foreign currency
7		transactions (but excluding amounts described
8		in subparagraphs (A) or (B) of this paragraph),
9		attributable to this State and included in the
10		numerator is determined by multiplying the
11		amount described in subparagraph (B) of
12		paragraph (1) of this subsection by a fraction,
13		the numerator of which is the gross income from
14		such trading assets and activities which are
15		properly assigned to a fixed place of business
16		of the taxpayer within this State and the
17		denominator of which is the gross income from
18		all such assets and activities.
19		(D) Properly assigned, for purposes of
20		this paragraph (2) of this subsection, means
21		the investment or trading asset or activity is
22		assigned to the fixed place of business with
23		which it has a preponderance of substantive
24		contacts. An investment or trading asset or
25		activity assigned by the taxpayer to a fixed
26		place of business without the State shall be

SB1739 Engrossed - 182 - LRB098 10559 AMC 40804 b
1		presumed to have been properly assigned if:
2		(i) the taxpayer has assigned, in the
3		regular course of its business, such asset
4		or activity on its records to a fixed place
5		of business consistent with federal or
6		state regulatory requirements;
7		(ii) such assignment on its records is
8		based upon substantive contacts of the
9		asset or activity to such fixed place of
10		business; and
11		(iii) the taxpayer uses such records
12		reflecting assignment of such assets or
13		activities for the filing of all state and
14		local tax returns for which an assignment
15		of such assets or activities to a fixed
16		place of business is required.
17		(E) The presumption of proper assignment
18		of an investment or trading asset or activity
19		provided in subparagraph (D) of paragraph (2)
20		of this subsection may be rebutted upon a
21		showing by the Department, supported by a
22		preponderance of the evidence, that the
23		preponderance of substantive contacts
24		regarding such asset or activity did not occur
25		at the fixed place of business to which it was
26		assigned on the taxpayer's records. If the

SB1739 Engrossed - 183 - LRB098 10559 AMC 40804 b
1		fixed place of business that has a
2		preponderance of substantive contacts cannot
3		be determined for an investment or trading
4		asset or activity to which the presumption in
5		subparagraph (D) of paragraph (2) of this
6		subsection does not apply or with respect to
7		which that presumption has been rebutted, that
8		asset or activity is properly assigned to the
9		state in which the taxpayer's commercial
10		domicile is located. For purposes of this
11		subparagraph (E), it shall be presumed,
12		subject to rebuttal, that taxpayer's
13		commercial domicile is in the state of the
14		United States or the District of Columbia to
15		which the greatest number of employees are
16		regularly connected with the management of the
17		investment or trading income or out of which
18		they are working, irrespective of where the
19		services of such employees are performed, as of
20		the last day of the taxable year.
21		(4) (Blank).
22		(5) (Blank).
23		(c-1) Federally regulated exchanges. For taxable years
24		ending on or after December 31, 2012, business income of a
25		federally regulated exchange shall, at the option of the
26		federally regulated exchange, be apportioned to this State by

SB1739 Engrossed - 184 - LRB098 10559 AMC 40804 b
1		multiplying such income by a fraction, the numerator of which
2		is its business income from sources within this State, and the
3		denominator of which is its business income from all sources.
4		For purposes of this subsection, the business income within
5		this State of a federally regulated exchange is the sum of the
6		following:
7		(1) Receipts attributable to transactions executed on
8		a physical trading floor if that physical trading floor is
9		located in this State.
10		(2) Receipts attributable to all other matching,
11		execution, or clearing transactions, including without
12		limitation receipts from the provision of matching,
13		execution, or clearing services to another entity,
14		multiplied by (i) for taxable years ending on or after
15		December 31, 2012 but before December 31, 2013, 63.77%; and
16		(ii) for taxable years ending on or after December 31,
17		2013, 27.54%.
18		(3) All other receipts not governed by subparagraphs
19		(1) or (2) of this subsection (c-1), to the extent the
20		receipts would be characterized as "sales in this State"
21		under item (3) of subsection (a) of this Section.
22		"Federally regulated exchange" means (i) a "registered
23		entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
24		or (C), (ii) an "exchange" or "clearing agency" within the
25		meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
26		entities regulated under any successor regulatory structure to

SB1739 Engrossed - 185 - LRB098 10559 AMC 40804 b
1		the foregoing, and (iv) all taxpayers who are members of the
2		same unitary business group as a federally regulated exchange,
3		determined without regard to the prohibition in Section
4		1501(a)(27) of this Act against including in a unitary business
5		group taxpayers who are ordinarily required to apportion
6		business income under different subsections of this Section;
7		provided that this subparagraph (iv) shall apply only if 50% or
8		more of the business receipts of the unitary business group
9		determined by application of this subparagraph (iv) for the
10		taxable year are attributable to the matching, execution, or
11		clearing of transactions conducted by an entity described in
12		subparagraph (i), (ii), or (iii) of this paragraph.
13		In no event shall the Illinois apportionment percentage
14		computed in accordance with this subsection (c-1) for any
15		taxpayer for any tax year be less than the Illinois
16		apportionment percentage computed under this subsection (c-1)
17		for that taxpayer for the first full tax year ending on or
18		after December 31, 2013 for which this subsection (c-1) applied
19		to the taxpayer.
20		(d) Transportation services. For taxable years ending
21		before December 31, 2008, business income derived from
22		furnishing transportation services shall be apportioned to
23		this State in accordance with paragraphs (1) and (2):
24		(1) Such business income (other than that derived from
25		transportation by pipeline) shall be apportioned to this
26		State by multiplying such income by a fraction, the

SB1739 Engrossed - 186 - LRB098 10559 AMC 40804 b
1		numerator of which is the revenue miles of the person in
2		this State, and the denominator of which is the revenue
3		miles of the person everywhere. For purposes of this
4		paragraph, a revenue mile is the transportation of 1
5		passenger or 1 net ton of freight the distance of 1 mile
6		for a consideration. Where a person is engaged in the
7		transportation of both passengers and freight, the
8		fraction above referred to shall be determined by means of
9		an average of the passenger revenue mile fraction and the
10		freight revenue mile fraction, weighted to reflect the
11		person's
12		(A) relative railway operating income from total
13		passenger and total freight service, as reported to the
14		Interstate Commerce Commission, in the case of
15		transportation by railroad, and
16		(B) relative gross receipts from passenger and
17		freight transportation, in case of transportation
18		other than by railroad.
19		(2) Such business income derived from transportation
20		by pipeline shall be apportioned to this State by
21		multiplying such income by a fraction, the numerator of
22		which is the revenue miles of the person in this State, and
23		the denominator of which is the revenue miles of the person
24		everywhere. For the purposes of this paragraph, a revenue
25		mile is the transportation by pipeline of 1 barrel of oil,
26		1,000 cubic feet of gas, or of any specified quantity of

SB1739 Engrossed - 187 - LRB098 10559 AMC 40804 b
1		any other substance, the distance of 1 mile for a
2		consideration.
3		(3) For taxable years ending on or after December 31,
4		2008, business income derived from providing
5		transportation services other than airline services shall
6		be apportioned to this State by using a fraction, (a) the
7		numerator of which shall be (i) all receipts from any
8		movement or shipment of people, goods, mail, oil, gas, or
9		any other substance (other than by airline) that both
10		originates and terminates in this State, plus (ii) that
11		portion of the person's gross receipts from movements or
12		shipments of people, goods, mail, oil, gas, or any other
13		substance (other than by airline) that originates in one
14		state or jurisdiction and terminates in another state or
15		jurisdiction, that is determined by the ratio that the
16		miles traveled in this State bears to total miles
17		everywhere and (b) the denominator of which shall be all
18		revenue derived from the movement or shipment of people,
19		goods, mail, oil, gas, or any other substance (other than
20		by airline). Where a taxpayer is engaged in the
21		transportation of both passengers and freight, the
22		fraction above referred to shall first be determined
23		separately for passenger miles and freight miles. Then an
24		average of the passenger miles fraction and the freight
25		miles fraction shall be weighted to reflect the taxpayer's:
26		(A) relative railway operating income from total

SB1739 Engrossed - 188 - LRB098 10559 AMC 40804 b
1		passenger and total freight service, as reported to the
2		Surface Transportation Board, in the case of
3		transportation by railroad; and
4		(B) relative gross receipts from passenger and
5		freight transportation, in case of transportation
6		other than by railroad.
7		(4) For taxable years ending on or after December 31,
8		2008, business income derived from furnishing airline
9		transportation services shall be apportioned to this State
10		by multiplying such income by a fraction, the numerator of
11		which is the revenue miles of the person in this State, and
12		the denominator of which is the revenue miles of the person
13		everywhere. For purposes of this paragraph, a revenue mile
14		is the transportation of one passenger or one net ton of
15		freight the distance of one mile for a consideration. If a
16		person is engaged in the transportation of both passengers
17		and freight, the fraction above referred to shall be
18		determined by means of an average of the passenger revenue
19		mile fraction and the freight revenue mile fraction,
20		weighted to reflect the person's relative gross receipts
21		from passenger and freight airline transportation.
22		(e) Combined apportionment. Where 2 or more persons are
23		engaged in a unitary business as described in subsection
24		(a)(27) of Section 1501, a part of which is conducted in this
25		State by one or more members of the group, the business income
26		attributable to this State by any such member or members shall

SB1739 Engrossed - 189 - LRB098 10559 AMC 40804 b
1		be apportioned by means of the combined apportionment method.
2		(f) Alternative allocation. If the allocation and
3		apportionment provisions of subsections (a) through (e) and of
4		subsection (h) do not fairly represent the extent of a person's
5		business activity in this State, the person may petition for,
6		or the Director may, without a petition, permit or require, in
7		respect of all or any part of the person's business activity,
8		if reasonable:
9		(1) Separate accounting;
10		(2) The exclusion of any one or more factors;
11		(3) The inclusion of one or more additional factors
12		which will fairly represent the person's business
13		activities in this State; or
14		(4) The employment of any other method to effectuate an
15		equitable allocation and apportionment of the person's
16		business income.
17		(g) Cross reference. For allocation of business income by
18		residents, see Section 301(a).
19		(h) For tax years ending on or after December 31, 1998, the
20		apportionment factor of persons who apportion their business
21		income to this State under subsection (a) shall be equal to:
22		(1) for tax years ending on or after December 31, 1998
23		and before December 31, 1999, 16 2/3% of the property
24		factor plus 16 2/3% of the payroll factor plus 66 2/3% of
25		the sales factor;
26		(2) for tax years ending on or after December 31, 1999

SB1739 Engrossed - 190 - LRB098 10559 AMC 40804 b
1		and before December 31, 2000, 8 1/3% of the property factor
2		plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
3		factor;
4		(3) for tax years ending on or after December 31, 2000,
5		the sales factor.
6		If, in any tax year ending on or after December 31, 1998 and
7		before December 31, 2000, the denominator of the payroll,
8		property, or sales factor is zero, the apportionment factor
9		computed in paragraph (1) or (2) of this subsection for that
10		year shall be divided by an amount equal to 100% minus the
11		percentage weight given to each factor whose denominator is
12		equal to zero.
13		(Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11;
14		97-636, eff. 6-1-12.)
15		(35 ILCS 5/710) (from Ch. 120, par. 7-710)
16		Sec. 710. Withholding from lottery winnings.
17		(a) In General.
18		(1) Any person making a payment to a resident or
19		nonresident of winnings under the Illinois Lottery Law and
20		not required to withhold Illinois income tax from such
21		payment under Subsection (b) of Section 701 of this Act
22		because those winnings are not subject to Federal income
23		tax withholding, must withhold Illinois income tax from
24		such payment at a rate equal to the percentage tax rate for
25		individuals provided in subsection (b) of Section 201,

SB1739 Engrossed - 191 - LRB098 10559 AMC 40804 b
1		provided that withholding is not required if such payment
2		of winnings is less than $1,000.
3		(2) Any person making a payment after December 31, 2013
4		to a resident or nonresident of winnings from pari-mutuel
5		wagering conducted at a wagering facility licensed under
6		the Illinois Horse Racing Act of 1975 or from gambling
7		games conducted on a riverboat or in a casino or electronic
8		gaming facility licensed under the Illinois Gambling Act
9		must withhold Illinois income tax from such payment at a
10		rate equal to the percentage tax rate for individuals
11		provided in subsection (b) of Section 201, provided that
12		the person making the payment is required to withhold under
13		Section 3402(q) of the Internal Revenue Code.
14		(b) Credit for taxes withheld. Any amount withheld under
15		Subsection (a) shall be a credit against the Illinois income
16		tax liability of the person to whom the payment of winnings was
17		made for the taxable year in which that person incurred an
18		Illinois income tax liability with respect to those winnings.
19		(Source: P.A. 85-731.)
20		Section 90-23. The Property Tax Code is amended by adding
21		Section 15-144 as follows:
22		(35 ILCS 200/15-144 new)
23		Sec. 15-144. Chicago Casino Development Authority. All
24		property owned by the Chicago Casino Development Authority is

SB1739 Engrossed - 192 - LRB098 10559 AMC 40804 b
1		exempt. Any property owned by the Chicago Casino Development
2		Authority and leased to any other entity is not exempt.
3		Section 90-24. The Illinois Municipal Code is amended by
4		adding Section 8-10-2.6 as follows:
5		(65 ILCS 5/8-10-2.6 new)
6		Sec. 8-10-2.6. Chicago Casino Development Authority.
7		Except as otherwise provided in the Chicago Casino Development
8		Authority Act, this Division 10 applies to purchase orders and
9		contracts relating to the Chicago Casino Development
10		Authority.
11		Section 90-25. The Joliet Regional Port District Act is
12		amended by changing Section 5.1 as follows:
13		(70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
14		Sec. 5.1. Riverboat and casino gambling. Notwithstanding
15		any other provision of this Act, the District may not regulate
16		the operation, conduct, or navigation of any riverboat gambling
17		casino licensed under the Illinois Riverboat Gambling Act, and
18		the District may not license, tax, or otherwise levy any
19		assessment of any kind on any riverboat gambling casino
20		licensed under the Illinois Riverboat Gambling Act. The General
21		Assembly declares that the powers to regulate the operation,
22		conduct, and navigation of riverboat gambling casinos and to

SB1739 Engrossed - 193 - LRB098 10559 AMC 40804 b
1		license, tax, and levy assessments upon riverboat gambling
2		casinos are exclusive powers of the State of Illinois and the
3		Illinois Gaming Board as provided in the Illinois Riverboat
4		Gambling Act.
5		(Source: P.A. 87-1175.)
6		Section 90-30. The Consumer Installment Loan Act is amended
7		by changing Section 12.5 as follows:
8		(205 ILCS 670/12.5)
9		Sec. 12.5. Limited purpose branch.
10		(a) Upon the written approval of the Director, a licensee
11		may maintain a limited purpose branch for the sole purpose of
12		making loans as permitted by this Act. A limited purpose branch
13		may include an automatic loan machine. No other activity shall
14		be conducted at the site, including but not limited to,
15		accepting payments, servicing the accounts, or collections.
16		(b) The licensee must submit an application for a limited
17		purpose branch to the Director on forms prescribed by the
18		Director with an application fee of $300. The approval for the
19		limited purpose branch must be renewed concurrently with the
20		renewal of the licensee's license along with a renewal fee of
21		$300 for the limited purpose branch.
22		(c) The books, accounts, records, and files of the limited
23		purpose branch's transactions shall be maintained at the
24		licensee's licensed location. The licensee shall notify the

SB1739 Engrossed - 194 - LRB098 10559 AMC 40804 b
1		Director of the licensed location at which the books, accounts,
2		records, and files shall be maintained.
3		(d) The licensee shall prominently display at the limited
4		purpose branch the address and telephone number of the
5		licensee's licensed location.
6		(e) No other business shall be conducted at the site of the
7		limited purpose branch unless authorized by the Director.
8		(f) The Director shall make and enforce reasonable rules
9		for the conduct of a limited purpose branch.
10		(g) A limited purpose branch may not be located within
11		1,000 feet of a facility operated by an inter-track wagering
12		licensee or an organization licensee subject to the Illinois
13		Horse Racing Act of 1975, on a riverboat or in a casino subject
14		to the Illinois Riverboat Gambling Act, or within 1,000 feet of
15		the location at which the riverboat docks or within 1,000 feet
16		of a casino.
17		(Source: P.A. 90-437, eff. 1-1-98.)
18		Section 90-35. The Illinois Horse Racing Act of 1975 is
19		amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
20		20, 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, and
21		54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
22		34.3, 39.2, and 56 as follows:
23		(230 ILCS 5/1.2)
24		Sec. 1.2. Legislative intent. This Act is intended to

SB1739 Engrossed - 195 - LRB098 10559 AMC 40804 b
1		benefit the people of the State of Illinois by encouraging the
2		breeding and production of race horses, assisting economic
3		development and promoting Illinois tourism. The General
4		Assembly finds and declares it to be the public policy of the
5		State of Illinois to:
6		(a) support and enhance Illinois' horse racing industry,
7		which is a significant component within the agribusiness
8		industry;
9		(b) ensure that Illinois' horse racing industry remains
10		competitive with neighboring states;
11		(c) stimulate growth within Illinois' horse racing
12		industry, thereby encouraging new investment and development
13		to produce additional tax revenues and to create additional
14		jobs;
15		(d) promote the further growth of tourism;
16		(e) encourage the breeding of thoroughbred and
17		standardbred horses in this State; and
18		(f) ensure that public confidence and trust in the
19		credibility and integrity of racing operations and the
20		regulatory process is maintained.
21		(Source: P.A. 91-40, eff. 6-25-99.)
22		(230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)
23		Sec. 3.11. "Organization Licensee" means any person
24		receiving an organization license from the Board to conduct a
25		race meeting or meetings. With respect only to electronic

SB1739 Engrossed - 196 - LRB098 10559 AMC 40804 b
1		gaming, "organization licensee" includes the authorization for
2		an electronic gaming license under subsection (a) of Section 56
3		of this Act.
4		(Source: P.A. 79-1185.)
5		(230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)
6		Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
7		system of wagering" means a form of wagering on the outcome of
8		horse races in which wagers are made in various denominations
9		on a horse or horses and all wagers for each race are pooled
10		and held by a licensee for distribution in a manner approved by
11		the Board. "Pari-mutuel system of wagering" shall not include
12		wagering on historic races. Wagers may be placed via any method
13		or at any location authorized under this Act.
14		(Source: P.A. 96-762, eff. 8-25-09.)
15		(230 ILCS 5/3.31 new)
16		Sec. 3.31. Adjusted gross receipts. "Adjusted gross
17		receipts" means the gross receipts less winnings paid to
18		wagerers.
19		(230 ILCS 5/3.32 new)
20		Sec. 3.32. Gross receipts. "Gross receipts" means the total
21		amount of money exchanged for the purchase of chips, tokens, or
22		electronic cards by riverboat or casino patrons or electronic
23		gaming patrons.

SB1739 Engrossed - 197 - LRB098 10559 AMC 40804 b
1		(230 ILCS 5/3.33 new)
2		Sec. 3.33. Electronic gaming. "Electronic gaming" means
3		slot machine gambling, video game of chance gambling, or
4		gambling with electronic gambling games as defined in the
5		Illinois Gambling Act or defined by the Illinois Gaming Board
6		that is conducted at a race track pursuant to an electronic
7		gaming license.
8		(230 ILCS 5/3.35 new)
9		Sec. 3.35. Electronic gaming license. "Electronic gaming
10		license" means a license issued by the Illinois Gaming Board
11		under Section 7.6 of the Illinois Gambling Act authorizing
12		electronic gaming at an electronic gaming facility.
13		(230 ILCS 5/3.36 new)
14		Sec. 3.36. Electronic gaming facility. "Electronic gaming
15		facility" means that portion of an organization licensee's race
16		track facility at which electronic gaming is conducted.
17		(230 ILCS 5/6) (from Ch. 8, par. 37-6)
18		Sec. 6. Restrictions on Board members.
19		(a) No person shall be appointed a member of the Board or
20		continue to be a member of the Board if the person or any
21		member of their immediate family is a member of the Board of
22		Directors, employee, or financially interested in any of the

SB1739 Engrossed - 198 - LRB098 10559 AMC 40804 b
1		following: (i) any licensee or other person who has applied for
2		racing dates to the Board, or the operations thereof including,
3		but not limited to, concessions, data processing, track
4		maintenance, track security, and pari-mutuel operations,
5		located, scheduled or doing business within the State of
6		Illinois, (ii) any race horse competing at a meeting under the
7		Board's jurisdiction, or (iii) any licensee under the Illinois
8		Gambling Act. No person shall be appointed a member of the
9		Board or continue to be a member of the Board who is (or any
10		member of whose family is) a member of the Board of Directors
11		of, or who is a person financially interested in, any licensee
12		or other person who has applied for racing dates to the Board,
13		or the operations thereof including, but not limited to,
14		concessions, data processing, track maintenance, track
15		security and pari-mutuel operations, located, scheduled or
16		doing business within the State of Illinois, or in any race
17		horse competing at a meeting under the Board's jurisdiction. No
18		Board member shall hold any other public office for which he
19		shall receive compensation other than necessary travel or other
20		incidental expenses.
21		(b) No person shall be a member of the Board who is not of
22		good moral character or who has been convicted of, or is under
23		indictment for, a felony under the laws of Illinois or any
24		other state, or the United States.
25		(c) No member of the Board or employee shall engage in any
26		political activity.

SB1739 Engrossed - 199 - LRB098 10559 AMC 40804 b
1		For the purposes of this subsection (c):
2		"Political" means any activity in support of or in
3		connection with any campaign for State or local elective office
4		or any political organization, but does not include activities
5		(i) relating to the support or opposition of any executive,
6		legislative, or administrative action (as those terms are
7		defined in Section 2 of the Lobbyist Registration Act), (ii)
8		relating to collective bargaining, or (iii) that are otherwise
9		in furtherance of the person's official State duties or
10		governmental and public service functions.
11		"Political organization" means a party, committee,
12		association, fund, or other organization (whether or not
13		incorporated) that is required to file a statement of
14		organization with the State Board of Elections or county clerk
15		under Section 9-3 of the Election Code, but only with regard to
16		those activities that require filing with the State Board of
17		Elections or county clerk.
18		(d) Board members and employees may not engage in
19		communications or any activity that may cause or have the
20		appearance of causing a conflict of interest. A conflict of
21		interest exists if a situation influences or creates the
22		appearance that it may influence judgment or performance of
23		regulatory duties and responsibilities. This prohibition shall
24		extend to any act identified by Board action that, in the
25		judgment of the Board, could represent the potential for or the
26		appearance of a conflict of interest.

SB1739 Engrossed - 200 - LRB098 10559 AMC 40804 b
1		(e) Board members and employees may not accept any gift,
2		gratuity, service, compensation, travel, lodging, or thing of
3		value, with the exception of unsolicited items of an incidental
4		nature, from any person, corporation, limited liability
5		company, or entity doing business with the Board.
6		(f) A Board member or employee shall not use or attempt to
7		use his or her official position to secure, or attempt to
8		secure, any privilege, advantage, favor, or influence for
9		himself or herself or others. No Board member or employee,
10		within a period of one year immediately preceding nomination by
11		the Governor or employment, shall have been employed or
12		received compensation or fees for services from a person or
13		entity, or its parent or affiliate, that has engaged in
14		business with the Board, a licensee or a licensee under the
15		Illinois Gambling Act. In addition, all Board members and
16		employees are subject to the restrictions set forth in Section
17		5-45 of the State Officials and Employees Ethics Act.
18		(Source: P.A. 89-16, eff. 5-30-95.)
19		(230 ILCS 5/9) (from Ch. 8, par. 37-9)
20		Sec. 9. The Board shall have all powers necessary and
21		proper to fully and effectively execute the provisions of this
22		Act, including, but not limited to, the following:
23		(a) The Board is vested with jurisdiction and supervision
24		over all race meetings in this State, over all licensees doing
25		business in this State, over all occupation licensees, and over

SB1739 Engrossed - 201 - LRB098 10559 AMC 40804 b
1		all persons on the facilities of any licensee. Such
2		jurisdiction shall include the power to issue licenses to the
3		Illinois Department of Agriculture authorizing the pari-mutuel
4		system of wagering on harness and Quarter Horse races held (1)
5		at the Illinois State Fair in Sangamon County, and (2) at the
6		DuQuoin State Fair in Perry County. The jurisdiction of the
7		Board shall also include the power to issue licenses to county
8		fairs which are eligible to receive funds pursuant to the
9		Agricultural Fair Act, as now or hereafter amended, or their
10		agents, authorizing the pari-mutuel system of wagering on horse
11		races conducted at the county fairs receiving such licenses.
12		Such licenses shall be governed by subsection (n) of this
13		Section.
14		Upon application, the Board shall issue a license to the
15		Illinois Department of Agriculture to conduct harness and
16		Quarter Horse races at the Illinois State Fair and at the
17		DuQuoin State Fairgrounds during the scheduled dates of each
18		fair. The Board shall not require and the Department of
19		Agriculture shall be exempt from the requirements of Sections
20		15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
21		(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
22		and 25. The Board and the Department of Agriculture may extend
23		any or all of these exemptions to any contractor or agent
24		engaged by the Department of Agriculture to conduct its race
25		meetings when the Board determines that this would best serve
26		the public interest and the interest of horse racing.

SB1739 Engrossed - 202 - LRB098 10559 AMC 40804 b
1		Notwithstanding any provision of law to the contrary, it
2		shall be lawful for any licensee to operate pari-mutuel
3		wagering or contract with the Department of Agriculture to
4		operate pari-mutuel wagering at the DuQuoin State Fairgrounds
5		or for the Department to enter into contracts with a licensee,
6		employ its owners, employees or agents and employ such other
7		occupation licensees as the Department deems necessary in
8		connection with race meetings and wagerings.
9		(b) The Board is vested with the full power to promulgate
10		reasonable rules and regulations for the purpose of
11		administering the provisions of this Act and to prescribe
12		reasonable rules, regulations and conditions under which all
13		horse race meetings or wagering in the State shall be
14		conducted. Such reasonable rules and regulations are to provide
15		for the prevention of practices detrimental to the public
16		interest and to promote the best interests of horse racing and
17		to impose penalties for violations thereof.
18		(c) The Board, and any person or persons to whom it
19		delegates this power, is vested with the power to enter the
20		facilities and other places of business of any licensee to
21		determine whether there has been compliance with the provisions
22		of this Act and its rules and regulations.
23		(d) The Board, and any person or persons to whom it
24		delegates this power, is vested with the authority to
25		investigate alleged violations of the provisions of this Act,
26		its reasonable rules and regulations, orders and final

SB1739 Engrossed - 203 - LRB098 10559 AMC 40804 b
1		decisions; the Board shall take appropriate disciplinary
2		action against any licensee or occupation licensee for
3		violation thereof or institute appropriate legal action for the
4		enforcement thereof.
5		(e) The Board, and any person or persons to whom it
6		delegates this power, may eject or exclude from any race
7		meeting or the facilities of any licensee, or any part thereof,
8		any occupation licensee or any other individual whose conduct
9		or reputation is such that his presence on those facilities
10		may, in the opinion of the Board, call into question the
11		honesty and integrity of horse racing or wagering or interfere
12		with the orderly conduct of horse racing or wagering; provided,
13		however, that no person shall be excluded or ejected from the
14		facilities of any licensee solely on the grounds of race,
15		color, creed, national origin, ancestry, or sex. The power to
16		eject or exclude an occupation licensee or other individual may
17		be exercised for just cause by the licensee or the Board,
18		subject to subsequent hearing by the Board as to the propriety
19		of said exclusion.
20		(f) The Board is vested with the power to acquire,
21		establish, maintain and operate (or provide by contract to
22		maintain and operate) testing laboratories and related
23		facilities, for the purpose of conducting saliva, blood, urine
24		and other tests on the horses run or to be run in any horse race
25		meeting, including races run at county fairs, and to purchase
26		all equipment and supplies deemed necessary or desirable in

SB1739 Engrossed - 204 - LRB098 10559 AMC 40804 b
1		connection with any such testing laboratories and related
2		facilities and all such tests.
3		(g) The Board may require that the records, including
4		financial or other statements of any licensee or any person
5		affiliated with the licensee who is involved directly or
6		indirectly in the activities of any licensee as regulated under
7		this Act to the extent that those financial or other statements
8		relate to such activities be kept in such manner as prescribed
9		by the Board, and that Board employees shall have access to
10		those records during reasonable business hours. Within 120 days
11		of the end of its fiscal year, each licensee shall transmit to
12		the Board an audit of the financial transactions and condition
13		of the licensee's total operations. All audits shall be
14		conducted by certified public accountants. Each certified
15		public accountant must be registered in the State of Illinois
16		under the Illinois Public Accounting Act. The compensation for
17		each certified public accountant shall be paid directly by the
18		licensee to the certified public accountant. A licensee shall
19		also submit any other financial or related information the
20		Board deems necessary to effectively administer this Act and
21		all rules, regulations, and final decisions promulgated under
22		this Act.
23		(h) The Board shall name and appoint in the manner provided
24		by the rules and regulations of the Board: an Executive
25		Director; a State director of mutuels; State veterinarians and
26		representatives to take saliva, blood, urine and other tests on

SB1739 Engrossed - 205 - LRB098 10559 AMC 40804 b
1		horses; licensing personnel; revenue inspectors; and State
2		seasonal employees (excluding admission ticket sellers and
3		mutuel clerks). All of those named and appointed as provided in
4		this subsection shall serve during the pleasure of the Board;
5		their compensation shall be determined by the Board and be paid
6		in the same manner as other employees of the Board under this
7		Act.
8		(i) The Board shall require that there shall be 3 stewards
9		at each horse race meeting, at least 2 of whom shall be named
10		and appointed by the Board. Stewards appointed or approved by
11		the Board, while performing duties required by this Act or by
12		the Board, shall be entitled to the same rights and immunities
13		as granted to Board members and Board employees in Section 10
14		of this Act.
15		(j) The Board may discharge any Board employee who fails or
16		refuses for any reason to comply with the rules and regulations
17		of the Board, or who, in the opinion of the Board, is guilty of
18		fraud, dishonesty or who is proven to be incompetent. The Board
19		shall have no right or power to determine who shall be
20		officers, directors or employees of any licensee, or their
21		salaries except the Board may, by rule, require that all or any
22		officials or employees in charge of or whose duties relate to
23		the actual running of races be approved by the Board.
24		(k) The Board is vested with the power to appoint delegates
25		to execute any of the powers granted to it under this Section
26		for the purpose of administering this Act and any rules or

SB1739 Engrossed - 206 - LRB098 10559 AMC 40804 b
1		regulations promulgated in accordance with this Act.
2		(l) The Board is vested with the power to impose civil
3		penalties of up to $5,000 against an individual and up to
4		$10,000 against a licensee for each violation of any provision
5		of this Act, any rules adopted by the Board, any order of the
6		Board or any other action which, in the Board's discretion, is
7		a detriment or impediment to horse racing or wagering.
8		Beginning on the date when any organization licensee begins
9		conducting electronic gaming pursuant to an electronic gaming
10		license issued under the Illinois Gambling Act, the power
11		granted to the Board pursuant to this subsection (l) shall
12		authorize the Board to impose penalties of up to $10,000
13		against an individual and up to $25,000 against a licensee. All
14		such civil penalties shall be deposited into the Horse Racing
15		Fund.
16		(m) The Board is vested with the power to prescribe a form
17		to be used by licensees as an application for employment for
18		employees of each licensee.
19		(n) The Board shall have the power to issue a license to
20		any county fair, or its agent, authorizing the conduct of the
21		pari-mutuel system of wagering. The Board is vested with the
22		full power to promulgate reasonable rules, regulations and
23		conditions under which all horse race meetings licensed
24		pursuant to this subsection shall be held and conducted,
25		including rules, regulations and conditions for the conduct of
26		the pari-mutuel system of wagering. The rules, regulations and

SB1739 Engrossed - 207 - LRB098 10559 AMC 40804 b
1		conditions shall provide for the prevention of practices
2		detrimental to the public interest and for the best interests
3		of horse racing, and shall prescribe penalties for violations
4		thereof. Any authority granted the Board under this Act shall
5		extend to its jurisdiction and supervision over county fairs,
6		or their agents, licensed pursuant to this subsection. However,
7		the Board may waive any provision of this Act or its rules or
8		regulations which would otherwise apply to such county fairs or
9		their agents.
10		(o) Whenever the Board is authorized or required by law to
11		consider some aspect of criminal history record information for
12		the purpose of carrying out its statutory powers and
13		responsibilities, then, upon request and payment of fees in
14		conformance with the requirements of Section 2605-400 of the
15		Department of State Police Law (20 ILCS 2605/2605-400), the
16		Department of State Police is authorized to furnish, pursuant
17		to positive identification, such information contained in
18		State files as is necessary to fulfill the request.
19		(p) To insure the convenience, comfort, and wagering
20		accessibility of race track patrons, to provide for the
21		maximization of State revenue, and to generate increases in
22		purse allotments to the horsemen, the Board shall require any
23		licensee to staff the pari-mutuel department with adequate
24		personnel.
25		(Source: P.A. 97-1060, eff. 8-24-12.)

SB1739 Engrossed - 208 - LRB098 10559 AMC 40804 b
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
26		set forth in the application his full name and address, and if

SB1739 Engrossed - 209 - LRB098 10559 AMC 40804 b
1		he had been issued prior occupation licenses or has been
2		licensed in any other state under any other name, such name,
3		his age, whether or not a permit or license issued to him in
4		any other state has been suspended or revoked and if so whether
5		such suspension or revocation is in effect at the time of the
6		application, and such other information as the Board may
7		require. Fees for registration of stable names shall not exceed
8		$50.00. Beginning on the date when any organization licensee
9		begins conducting electronic gaming pursuant to an electronic
10		gambling license issued under the Illinois Gambling Act, the
11		fee for registration of stable names shall not exceed $150, and
12		the application fee for an occupation license shall not exceed
13		$75, per year or, in the case of a 3-year occupation license
14		application, the fee shall not exceed $180.
15		(c) The Board may in its discretion refuse an occupation
16		license to any person:
17		(1) who has been convicted of a crime;
18		(2) who is unqualified to perform the duties required
19		of such applicant;
20		(3) who fails to disclose or states falsely any
21		information called for in the application;
22		(4) who has been found guilty of a violation of this
23		Act or of the rules and regulations of the Board; or
24		(5) whose license or permit has been suspended, revoked
25		or denied for just cause in any other state.
26		(d) The Board may suspend or revoke any occupation license:

SB1739 Engrossed - 210 - LRB098 10559 AMC 40804 b
1		(1) for violation of any of the provisions of this Act;
2		or
3		(2) for violation of any of the rules or regulations of
4		the Board; or
5		(3) for any cause which, if known to the Board, would
6		have justified the Board in refusing to issue such
7		occupation license; or
8		(4) for any other just cause.
9		(e) Each applicant shall submit his or her fingerprints
10		to the Department of State Police in the form and manner
11		prescribed by the Department of State Police. These
12		fingerprints shall be checked against the fingerprint records
13		now and hereafter filed in the Department of State Police and
14		Federal Bureau of Investigation criminal history records
15		databases. The Department of State Police shall charge a fee
16		for conducting the criminal history records check, which shall
17		be deposited in the State Police Services Fund and shall not
18		exceed the actual cost of the records check. The Department of
19		State Police shall furnish, pursuant to positive
20		identification, records of conviction to the Board. Each
21		applicant for licensure shall submit with his occupation
22		license application, on forms provided by the Board, 2 sets of
23		his fingerprints. All such applicants shall appear in person at
24		the location designated by the Board for the purpose of
25		submitting such sets of fingerprints; however, with the prior
26		approval of a State steward, an applicant may have such sets of

SB1739 Engrossed - 211 - LRB098 10559 AMC 40804 b
1		fingerprints taken by an official law enforcement agency and
2		submitted to the Board.
3		(f) The Board may, in its discretion, issue an occupation
4		license without submission of fingerprints if an applicant has
5		been duly licensed in another recognized racing jurisdiction
6		after submitting fingerprints that were subjected to a Federal
7		Bureau of Investigation criminal history background check in
8		that jurisdiction.
9		(g) Beginning on the date when any organization licensee
10		begins conducting electronic gambling pursuant to an
11		electronic gaming license issued under the Illinois Gambling
12		Act, the Board may charge each applicant a reasonable
13		non-refundable fee to defray the costs associated with the
14		background investigation conducted by the Board. This fee shall
15		be exclusive of any other fee or fees charged in connection
16		with an application for and, if applicable, the issuance of, an
17		electronic gaming license. If the costs of the investigation
18		exceed the amount of the fee charged, the Board shall
19		immediately notify the applicant of the additional amount owed,
20		payment of which must be submitted to the Board within 7 days
21		after such notification. All information, records, interviews,
22		reports, statements, memoranda, or other data supplied to or
23		used by the Board in the course of its review or investigation
24		of an applicant for a license or renewal under this Act shall
25		be privileged, strictly confidential, and shall be used only
26		for the purpose of evaluating an applicant for a license or a

SB1739 Engrossed - 212 - LRB098 10559 AMC 40804 b
1		renewal. Such information, records, interviews, reports,
2		statements, memoranda, or other data shall not be admissible as
3		evidence, nor discoverable, in any action of any kind in any
4		court or before any tribunal, board, agency, or person, except
5		for any action deemed necessary by the Board.
6		(Source: P.A. 93-418, eff. 1-1-04.)
7		(230 ILCS 5/18) (from Ch. 8, par. 37-18)
8		Sec. 18. (a) Together with its application, each applicant
9		for racing dates shall deliver to the Board a certified check
10		or bank draft payable to the order of the Board for $1,000. In
11		the event the applicant applies for racing dates in 2 or 3
12		successive calendar years as provided in subsection (b) of
13		Section 21, the fee shall be $2,000. Filing fees shall not be
14		refunded in the event the application is denied. Beginning on
15		the date when any organization licensee begins conducting
16		electronic gaming pursuant to an electronic gaming license
17		issued under the Illinois Gambling Act, the application fee for
18		racing dates imposed by this subsection (a) shall be $10,000
19		and the application fee for racing dates in 2 or 3 successive
20		calendar years as provided in subsection (b) of Section 21
21		shall be $20,000. All filing fees shall be deposited into the
22		Horse Racing Fund.
23		(b) In addition to the filing fee imposed by subsection (a)
24		of $1000 and the fees provided in subsection (j) of Section 20,
25		each organization licensee shall pay a license fee of $100 for

SB1739 Engrossed - 213 - LRB098 10559 AMC 40804 b
1		each racing program on which its daily pari-mutuel handle is
2		$400,000 or more but less than $700,000, and a license fee of
3		$200 for each racing program on which its daily pari-mutuel
4		handle is $700,000 or more. The additional fees required to be
5		paid under this Section by this amendatory Act of 1982 shall be
6		remitted by the organization licensee to the Illinois Racing
7		Board with each day's graduated privilege tax or pari-mutuel
8		tax and breakage as provided under Section 27. Beginning on the
9		date when any organization licensee begins conducting
10		electronic gaming pursuant to an electronic gaming license
11		issued under the Illinois Gambling Act, the license fee imposed
12		by this subsection (b) shall be $200 for each racing program on
13		which the organization licensee's daily pari-mutuel handle is
14		$100,000 or more, but less than $400,000, and the license fee
15		imposed by this subsection (b) shall be $400 for each racing
16		program on which the organization licensee's daily pari-mutuel
17		handle is $400,000 or more.
18		(c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
19		Municipal Code," approved May 29, 1961, as now or hereafter
20		amended, shall not apply to any license under this Act.
21		(Source: P.A. 97-1060, eff. 8-24-12.)
22		(230 ILCS 5/19) (from Ch. 8, par. 37-19)
23		Sec. 19. (a) No organization license may be granted to
24		conduct a horse race meeting:
25		(1) except as provided in subsection (c) of Section 21

SB1739 Engrossed - 214 - LRB098 10559 AMC 40804 b
1		of this Act, to any person at any place within 35 miles of
2		any other place licensed by the Board to hold a race
3		meeting on the same date during the same hours, the mileage
4		measurement used in this subsection (a) shall be certified
5		to the Board by the Bureau of Systems and Services in the
6		Illinois Department of Transportation as the most commonly
7		used public way of vehicular travel;
8		(2) to any person in default in the payment of any
9		obligation or debt due the State under this Act, provided
10		no applicant shall be deemed in default in the payment of
11		any obligation or debt due to the State under this Act as
12		long as there is pending a hearing of any kind relevant to
13		such matter;
14		(3) to any person who has been convicted of the
15		violation of any law of the United States or any State law
16		which provided as all or part of its penalty imprisonment
17		in any penal institution; to any person against whom there
18		is pending a Federal or State criminal charge; to any
19		person who is or has been connected with or engaged in the
20		operation of any illegal business; to any person who does
21		not enjoy a general reputation in his community of being an
22		honest, upright, law-abiding person; provided that none of
23		the matters set forth in this subparagraph (3) shall make
24		any person ineligible to be granted an organization license
25		if the Board determines, based on circumstances of any such
26		case, that the granting of a license would not be

SB1739 Engrossed - 215 - LRB098 10559 AMC 40804 b
1		detrimental to the interests of horse racing and of the
2		public;
3		(4) to any person who does not at the time of
4		application for the organization license own or have a
5		contract or lease for the possession of a finished race
6		track suitable for the type of racing intended to be held
7		by the applicant and for the accommodation of the public.
8		(b) (Blank) Horse racing on Sunday shall be prohibited
9		unless authorized by ordinance or referendum of the
10		municipality in which a race track or any of its appurtenances
11		or facilities are located, or utilized.
12		(c) If any person is ineligible to receive an organization
13		license because of any of the matters set forth in subsection
14		(a) (2) or subsection (a) (3) of this Section, any other or
15		separate person that either (i) controls, directly or
16		indirectly, such ineligible person or (ii) is controlled,
17		directly or indirectly, by such ineligible person or by a
18		person which controls, directly or indirectly, such ineligible
19		person shall also be ineligible.
20		(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
21		(230 ILCS 5/20) (from Ch. 8, par. 37-20)
22		Sec. 20. (a) Any person desiring to conduct a horse race
23		meeting may apply to the Board for an organization license. The
24		application shall be made on a form prescribed and furnished by
25		the Board. The application shall specify:

SB1739 Engrossed - 216 - LRB098 10559 AMC 40804 b
1		(1) the dates on which it intends to conduct the horse
2		race meeting, which dates shall be provided under Section
3		21;
4		(2) the hours of each racing day between which it
5		intends to hold or conduct horse racing at such meeting;
6		(3) the location where it proposes to conduct the
7		meeting; and
8		(4) any other information the Board may reasonably
9		require.
10		(b) A separate application for an organization license
11		shall be filed for each horse race meeting which such person
12		proposes to hold. Any such application, if made by an
13		individual, or by any individual as trustee, shall be signed
14		and verified under oath by such individual. If the application
15		is made by individuals, then it shall be signed and verified
16		under oath by at least 2 of the individuals; if the application
17		is made by or a partnership, it shall be signed and verified
18		under oath by at least 2 of such individuals or members of such
19		partnership as the case may be. If made by an association, a
20		corporation, a corporate trustee, a limited liability company,
21		or any other entity, it shall be signed by an authorized
22		officer, a partner, a member, or a manager, as the case may be,
23		of the entity the president and attested by the secretary or
24		assistant secretary under the seal of such association, trust
25		or corporation if it has a seal, and shall also be verified
26		under oath by one of the signing officers.

SB1739 Engrossed - 217 - LRB098 10559 AMC 40804 b
1		(c) The application shall specify:
2		(1) the name of the persons, association, trust, or
3		corporation making such application; and
4		(2) the principal post office address of the applicant;
5		(3) if the applicant is a trustee, the names and
6		addresses of the beneficiaries; if the applicant is a
7		corporation, the names and post office addresses of all
8		officers, stockholders and directors; or if such
9		stockholders hold stock as a nominee or fiduciary, the
10		names and post office addresses of the parties these
11		persons, partnerships, corporations, or trusts who are the
12		beneficial owners thereof or who are beneficially
13		interested therein; and if the applicant is a partnership,
14		the names and post office addresses of all partners,
15		general or limited; if the applicant is a limited liability
16		company, the names and addresses of the manager and
17		members; and if the applicant is any other entity, the
18		names and addresses of all officers or other authorized
19		persons of the entity corporation, the name of the state of
20		its incorporation shall be specified.
21		(d) The applicant shall execute and file with the Board a
22		good faith affirmative action plan to recruit, train, and
23		upgrade minorities in all classifications within the
24		association.
25		(e) With such application there shall be delivered to the
26		Board a certified check or bank draft payable to the order of

SB1739 Engrossed - 218 - LRB098 10559 AMC 40804 b
1		the Board for an amount equal to $1,000. All applications for
2		the issuance of an organization license shall be filed with the
3		Board before August 1 of the year prior to the year for which
4		application is made and shall be acted upon by the Board at a
5		meeting to be held on such date as shall be fixed by the Board
6		during the last 15 days of September of such prior year. At
7		such meeting, the Board shall announce the award of the racing
8		meets, live racing schedule, and designation of host track to
9		the applicants and its approval or disapproval of each
10		application. No announcement shall be considered binding until
11		a formal order is executed by the Board, which shall be
12		executed no later than October 15 of that prior year. Absent
13		the agreement of the affected organization licensees, the Board
14		shall not grant overlapping race meetings to 2 or more tracks
15		that are within 100 miles of each other to conduct the
16		thoroughbred racing.
17		(e-1) In awarding standardbred racing dates for calendar
18		year 2014 and thereafter, the Board shall award at least 310
19		racing days, and each organization licensee shall average at
20		least 12 races for each racing day awarded. The Board shall
21		have the discretion to allocate those racing days among
22		organization licensees requesting standardbred racing dates.
23		Once awarded by the Board, organization licensees awarded
24		standardbred racing dates shall run at least 3,500 races in
25		total during that calendar year. Standardbred racing conducted
26		in Sangamon County shall not be considered races under this

SB1739 Engrossed - 219 - LRB098 10559 AMC 40804 b
1		subsection (e-1).
2		(e-2) In awarding racing dates for calendar year 2014 and
3		thereafter, the Board shall award thoroughbred racing days to
4		Cook County organization licensees commensurate with these
5		organization licensees' requirement that they shall run at
6		least 1,950 thoroughbred races in the aggregate, so long as 2
7		organization licensees are conducting electronic gaming
8		operations. Additionally, if the organization licensees that
9		run thoroughbred races in Cook County are conducting electronic
10		gaming operations, the Board shall increase the number of
11		thoroughbred races to be run in Cook County in the aggregate to
12		at least the following:
13		(i) 2,050 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		$200,000,000, but do not exceed $250,000,000;
18		(ii) 2,125 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 total in excess of
22		$250,000,000, but do not exceed $300,000,000;
23		(iii) 2,200 races in any year following the most recent
24		preceding complete calendar year when the combined
25		adjusted gross receipts of the electronic gaming licensees
26		operating at Cook County race tracks total in excess of

SB1739 Engrossed - 220 - LRB098 10559 AMC 40804 b
1		$300,000,000, but do not exceed $350,000,000;
2		(iv) 2,300 races in any year following the most recent
3		preceding complete calendar year when the combined
4		adjusted gross receipts of the electronic gaming licensees
5		operating at Cook County race tracks total in excess of
6		$350,000,000, but do not exceed $400,000,000;
7		(v) 2,375 races in any year following the most recent
8		preceding complete calendar year when the combined
9		adjusted gross receipts of the electronic gaming licensees
10		operating at Cook County race tracks total in excess of
11		$400,000,000, but do not exceed $450,000,000;
12		(vi) 2,450 races in any year following the most recent
13		preceding complete calendar year when the combined
14		adjusted gross receipts of the electronic gaming licensees
15		operating at Cook County race tracks total in excess of
16		$450,000,000, but do not exceed $500,000,000;
17		(vii) 2,550 races in any year following the most recent
18		preceding complete calendar year when the combined
19		adjusted gross receipts of the electronic gaming licensees
20		operating at Cook County race tracks exceeds $500,000,000.
21		In awarding racing dates under this subsection (e-2), the
22		Board shall have the discretion to allocate those thoroughbred
23		racing dates among these Cook County organization licensees.
24		(e-3) In awarding racing dates for calendar year 2014 and
25		thereafter in connection with a race track in Madison County,
26		the Board shall award racing dates and such organization

SB1739 Engrossed - 221 - LRB098 10559 AMC 40804 b
1		licensee shall run at least 700 thoroughbred races at the race
2		track in Madison County each year.
3		Notwithstanding Section 7.6 of the Illinois Gambling Act or
4		any provision of this Act other than subsection (e-4.5), for
5		each calendar year for which an electronic gaming licensee
6		located in Madison County requests racing dates resulting in
7		less than 700 live thoroughbred races at its race track
8		facility, the electronic gaming licensee may not conduct
9		electronic gaming for the calendar year of such requested live
10		races.
11		(e-4) Notwithstanding the provisions of Section 7.6 of the
12		Illinois Gambling Act or any provision of this Act other than
13		subsections (e-3) and (e-4.5), for each calendar year for which
14		an electronic gaming licensee requests racing dates for a
15		specific horse breed which results in a number of live races
16		for that specific breed under its organization license that is
17		less than the total number of live races for that specific
18		breed which it conducted in 2011 for standardbred racing and in
19		2009 for thoroughbred racing at its race track facility, the
20		electronic gaming licensee may not conduct electronic gaming
21		for the calendar year of such requested live races.
22		(e-4.5) The Board shall ensure that each organization
23		licensee shall individually run a sufficient number of races
24		per year to qualify for an electronic gaming license under this
25		Act. The General Assembly finds that the minimum live racing
26		guarantees contained in subsections (e-1), (e-2), and (e-3) are

SB1739 Engrossed - 222 - LRB098 10559 AMC 40804 b
1		in the best interest of the sport of horse racing, and that
2		such guarantees may only be reduced in the limited
3		circumstances described in this subsection. The Board may
4		decrease the number of racing days without affecting an
5		organization licensee's ability to conduct electronic gaming
6		only if the Board determines, after notice and hearing, that:
7		(i) a decrease is necessary to maintain a sufficient
8		number of betting interests per race to ensure the
9		integrity of racing;
10		(ii) there are unsafe track conditions due to weather
11		or acts of God;
12		(iii) there is an agreement between an organization
13		licensee and the breed association that is applicable to
14		the involved live racing guarantee, such association
15		representing either the largest number of thoroughbred
16		owners and trainers or the largest number of standardbred
17		owners, trainers and drivers who race horses at the
18		involved organization licensee's racing meeting, so long
19		as the agreement does not compromise the integrity of the
20		sport of horse racing; or
21		(iv) the horse population or purse levels are
22		insufficient to provide the number of racing opportunities
23		otherwise required in this Act.
24		In decreasing the number of racing dates in accordance with
25		this subsection, the Board shall hold a hearing and shall
26		provide the public and all interested parties notice and an

SB1739 Engrossed - 223 - LRB098 10559 AMC 40804 b
1		opportunity to be heard. The Board shall accept testimony from
2		all interested parties, including any association representing
3		owners, trainers, jockeys, or drivers who will be affected by
4		the decrease in racing dates. The Board shall provide a written
5		explanation of the reasons for the decrease and the Board's
6		findings. The written explanation shall include a listing and
7		content of all communication between any party and any Illinois
8		Racing Board member or staff that does not take place at a
9		public meeting of the Board.
10		(e-5) In reviewing an application for the purpose of
11		granting an organization license consistent with the best
12		interests of the public and the sport of horse racing, the
13		Board shall consider:
14		(1) the character, reputation, experience, and
15		financial integrity of the applicant and of any other
16		separate person that either:
17		(i) controls the applicant, directly or
18		indirectly, or
19		(ii) is controlled, directly or indirectly, by
20		that applicant or by a person who controls, directly or
21		indirectly, that applicant;
22		(2) the applicant's facilities or proposed facilities
23		for conducting horse racing;
24		(3) the total revenue without regard to Section 32.1 to
25		be derived by the State and horsemen from the applicant's
26		conducting a race meeting;

SB1739 Engrossed - 224 - LRB098 10559 AMC 40804 b
1		(4) the applicant's good faith affirmative action plan
2		to recruit, train, and upgrade minorities in all employment
3		classifications;
4		(5) the applicant's financial ability to purchase and
5		maintain adequate liability and casualty insurance;
6		(6) the applicant's proposed and prior year's
7		promotional and marketing activities and expenditures of
8		the applicant associated with those activities;
9		(7) an agreement, if any, among organization licensees
10		as provided in subsection (b) of Section 21 of this Act;
11		and
12		(8) the extent to which the applicant exceeds or meets
13		other standards for the issuance of an organization license
14		that the Board shall adopt by rule.
15		In granting organization licenses and allocating dates for
16		horse race meetings, the Board shall have discretion to
17		determine an overall schedule, including required simulcasts
18		of Illinois races by host tracks that will, in its judgment, be
19		conducive to the best interests of the public and the sport of
20		horse racing.
21		(e-10) The Illinois Administrative Procedure Act shall
22		apply to administrative procedures of the Board under this Act
23		for the granting of an organization license, except that (1)
24		notwithstanding the provisions of subsection (b) of Section
25		10-40 of the Illinois Administrative Procedure Act regarding
26		cross-examination, the Board may prescribe rules limiting the

SB1739 Engrossed - 225 - LRB098 10559 AMC 40804 b
1		right of an applicant or participant in any proceeding to award
2		an organization license to conduct cross-examination of
3		witnesses at that proceeding where that cross-examination
4		would unduly obstruct the timely award of an organization
5		license under subsection (e) of Section 20 of this Act; (2) the
6		provisions of Section 10-45 of the Illinois Administrative
7		Procedure Act regarding proposals for decision are excluded
8		under this Act; (3) notwithstanding the provisions of
9		subsection (a) of Section 10-60 of the Illinois Administrative
10		Procedure Act regarding ex parte communications, the Board may
11		prescribe rules allowing ex parte communications with
12		applicants or participants in a proceeding to award an
13		organization license where conducting those communications
14		would be in the best interest of racing, provided all those
15		communications are made part of the record of that proceeding
16		pursuant to subsection (c) of Section 10-60 of the Illinois
17		Administrative Procedure Act; (4) the provisions of Section 14a
18		of this Act and the rules of the Board promulgated under that
19		Section shall apply instead of the provisions of Article 10 of
20		the Illinois Administrative Procedure Act regarding
21		administrative law judges; and (5) the provisions of subsection
22		(d) of Section 10-65 of the Illinois Administrative Procedure
23		Act that prevent summary suspension of a license pending
24		revocation or other action shall not apply.
25		(f) The Board may allot racing dates to an organization
26		licensee for more than one calendar year but for no more than 3

SB1739 Engrossed - 226 - LRB098 10559 AMC 40804 b
1		successive calendar years in advance, provided that the Board
2		shall review such allotment for more than one calendar year
3		prior to each year for which such allotment has been made. The
4		granting of an organization license to a person constitutes a
5		privilege to conduct a horse race meeting under the provisions
6		of this Act, and no person granted an organization license
7		shall be deemed to have a vested interest, property right, or
8		future expectation to receive an organization license in any
9		subsequent year as a result of the granting of an organization
10		license. Organization licenses shall be subject to revocation
11		if the organization licensee has violated any provision of this
12		Act or the rules and regulations promulgated under this Act or
13		has been convicted of a crime or has failed to disclose or has
14		stated falsely any information called for in the application
15		for an organization license. Any organization license
16		revocation proceeding shall be in accordance with Section 16
17		regarding suspension and revocation of occupation licenses.
18		(f-5) If, (i) an applicant does not file an acceptance of
19		the racing dates awarded by the Board as required under part
20		(1) of subsection (h) of this Section 20, or (ii) an
21		organization licensee has its license suspended or revoked
22		under this Act, the Board, upon conducting an emergency hearing
23		as provided for in this Act, may reaward on an emergency basis
24		pursuant to rules established by the Board, racing dates not
25		accepted or the racing dates associated with any suspension or
26		revocation period to one or more organization licensees, new

SB1739 Engrossed - 227 - LRB098 10559 AMC 40804 b
1		applicants, or any combination thereof, upon terms and
2		conditions that the Board determines are in the best interest
3		of racing, provided, the organization licensees or new
4		applicants receiving the awarded racing dates file an
5		acceptance of those reawarded racing dates as required under
6		paragraph (1) of subsection (h) of this Section 20 and comply
7		with the other provisions of this Act. The Illinois
8		Administrative Procedure Act shall not apply to the
9		administrative procedures of the Board in conducting the
10		emergency hearing and the reallocation of racing dates on an
11		emergency basis.
12		(g) (Blank).
13		(h) The Board shall send the applicant a copy of its
14		formally executed order by certified mail addressed to the
15		applicant at the address stated in his application, which
16		notice shall be mailed within 5 days of the date the formal
17		order is executed.
18		Each applicant notified shall, within 10 days after receipt
19		of the final executed order of the Board awarding racing dates:
20		(1) file with the Board an acceptance of such award in
21		the form prescribed by the Board;
22		(2) pay to the Board an additional amount equal to $110
23		for each racing date awarded; and
24		(3) file with the Board the bonds required in Sections
25		21 and 25 at least 20 days prior to the first day of each
26		race meeting.

SB1739 Engrossed - 228 - LRB098 10559 AMC 40804 b
1		Upon compliance with the provisions of paragraphs (1), (2), and
2		(3) of this subsection (h), the applicant shall be issued an
3		organization license.
4		If any applicant fails to comply with this Section or fails
5		to pay the organization license fees herein provided, no
6		organization license shall be issued to such applicant.
7		(Source: P.A. 97-333, eff. 8-12-11.)
8		(230 ILCS 5/21) (from Ch. 8, par. 37-21)
9		Sec. 21. (a) Applications for organization licenses must be
10		filed with the Board at a time and place prescribed by the
11		rules and regulations of the Board. The Board shall examine the
12		applications within 21 days after the date allowed for filing
13		with respect to their conformity with this Act and such rules
14		and regulations as may be prescribed by the Board. If any
15		application does not comply with this Act or the rules and
16		regulations prescribed by the Board, such application may be
17		rejected and an organization license refused to the applicant,
18		or the Board may, within 21 days of the receipt of such
19		application, advise the applicant of the deficiencies of the
20		application under the Act or the rules and regulations of the
21		Board, and require the submittal of an amended application
22		within a reasonable time determined by the Board; and upon
23		submittal of the amended application by the applicant, the
24		Board may consider the application consistent with the process
25		described in subsection (e-5) of Section 20 of this Act. If it

SB1739 Engrossed - 229 - LRB098 10559 AMC 40804 b
1		is found to be in compliance with this Act and the rules and
2		regulations of the Board, the Board may then issue an
3		organization license to such applicant.
4		(b) The Board may exercise discretion in granting racing
5		dates to qualified applicants different from those requested by
6		the applicants in their applications. However, if all eligible
7		applicants for organization licenses whose tracks are located
8		within 100 miles of each other execute and submit to the Board
9		a written agreement among such applicants as to the award of
10		racing dates, including where applicable racing programs, for
11		up to 3 consecutive years, then subject to annual review of
12		each applicant's compliance with Board rules and regulations,
13		provisions of this Act and conditions contained in annual dates
14		orders issued by the Board, the Board may grant such dates and
15		programs to such applicants as so agreed by them if the Board
16		determines that the grant of these racing dates is in the best
17		interests of racing. The Board shall treat any such agreement
18		as the agreement signatories' joint and several application for
19		racing dates during the term of the agreement.
20		(c) Where 2 or more applicants propose to conduct horse
21		race meetings within 35 miles of each other, as certified to
22		the Board under Section 19 (a) (1) of this Act, on conflicting
23		dates, the Board may determine and grant the number of racing
24		days to be awarded to the several applicants in accordance with
25		the provisions of subsection (e-5) of Section 20 of this Act.
26		(d) (Blank).

SB1739 Engrossed - 230 - LRB098 10559 AMC 40804 b
1		(e) Prior to the issuance of an organization license, the
2		applicant shall file with the Board a bond payable to the State
3		of Illinois in the sum of $200,000, executed by the applicant
4		and a surety company or companies authorized to do business in
5		this State, and conditioned upon the payment by the
6		organization licensee of all taxes due under Section 27, other
7		monies due and payable under this Act, all purses due and
8		payable, and that the organization licensee will upon
9		presentation of the winning ticket or tickets distribute all
10		sums due to the patrons of pari-mutuel pools. Beginning on the
11		date when any organization licensee begins conducting
12		electronic gaming pursuant to an electronic gaming license
13		issued under the Illinois Gambling Act, the amount of the bond
14		required under this subsection (e) shall be $500,000.
15		(f) Each organization license shall specify the person to
16		whom it is issued, the dates upon which horse racing is
17		permitted, and the location, place, track, or enclosure where
18		the horse race meeting is to be held.
19		(g) Any person who owns one or more race tracks within the
20		State may seek, in its own name, a separate organization
21		license for each race track.
22		(h) All racing conducted under such organization license is
23		subject to this Act and to the rules and regulations from time
24		to time prescribed by the Board, and every such organization
25		license issued by the Board shall contain a recital to that
26		effect.

SB1739 Engrossed - 231 - LRB098 10559 AMC 40804 b
1		(i) Each such organization licensee may provide that at
2		least one race per day may be devoted to the racing of quarter
3		horses, appaloosas, arabians, or paints.
4		(j) In acting on applications for organization licenses,
5		the Board shall give weight to an organization license which
6		has implemented a good faith affirmative action effort to
7		recruit, train and upgrade minorities in all classifications
8		within the organization license.
9		(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
10		(230 ILCS 5/24) (from Ch. 8, par. 37-24)
11		Sec. 24. (a) No license shall be issued to or held by an
12		organization licensee unless all of its officers, directors,
13		and holders of ownership interests of at least 5% are first
14		approved by the Board. The Board shall not give approval of an
15		organization license application to any person who has been
16		convicted of or is under an indictment for a crime of moral
17		turpitude or has violated any provision of the racing law of
18		this State or any rules of the Board.
19		(b) An organization licensee must notify the Board within
20		10 days of any change in the holders of a direct or indirect
21		interest in the ownership of the organization licensee. The
22		Board may, after hearing, revoke the organization license of
23		any person who registers on its books or knowingly permits a
24		direct or indirect interest in the ownership of that person
25		without notifying the Board of the name of the holder in

SB1739 Engrossed - 232 - LRB098 10559 AMC 40804 b
1		interest within this period.
2		(c) In addition to the provisions of subsection (a) of this
3		Section, no person shall be granted an organization license if
4		any public official of the State or member of his or her family
5		holds any ownership or financial interest, directly or
6		indirectly, in the person.
7		(d) No person which has been granted an organization
8		license to hold a race meeting shall give to any public
9		official or member of his family, directly or indirectly, for
10		or without consideration, any interest in the person. The Board
11		shall, after hearing, revoke the organization license granted
12		to a person which has violated this subsection.
13		(e) (Blank).
14		(f) No organization licensee or concessionaire or officer,
15		director or holder or controller of 5% or more legal or
16		beneficial interest in any organization licensee or concession
17		shall make any sort of gift or contribution that is prohibited
18		under Article 10 of the State Officials and Employees Ethics
19		Act of any kind or pay or give any money or other thing of value
20		to any person who is a public official, or a candidate or
21		nominee for public office if that payment or gift is prohibited
22		under Article 10 of the State Officials and Employees Ethics
23		Act.
24		(Source: P.A. 89-16, eff. 5-30-95.)
25		(230 ILCS 5/25) (from Ch. 8, par. 37-25)

SB1739 Engrossed - 233 - LRB098 10559 AMC 40804 b
1		Sec. 25. Admission charge; bond; fine.
2		(a) There shall be paid to the Board at such time or times
3		as it shall prescribe, the sum of fifteen cents (15¢) for each
4		person entering the grounds or enclosure of each organization
5		licensee and inter-track wagering licensee upon a ticket of
6		admission except as provided in subsection (g) of Section 27 of
7		this Act. If tickets are issued for more than one day then the
8		sum of fifteen cents (15¢) shall be paid for each person using
9		such ticket on each day that the same shall be used. Provided,
10		however, that no charge shall be made on tickets of admission
11		issued to and in the name of directors, officers, agents or
12		employees of the organization licensee, or inter-track
13		wagering licensee, or to owners, trainers, jockeys, drivers and
14		their employees or to any person or persons entering the
15		grounds or enclosure for the transaction of business in
16		connection with such race meeting. The organization licensee or
17		inter-track wagering licensee may, if it desires, collect such
18		amount from each ticket holder in addition to the amount or
19		amounts charged for such ticket of admission. Beginning on the
20		date when any organization licensee begins conducting
21		electronic gaming pursuant to an electronic gaming license
22		issued under the Illinois Gambling Act, the admission charge
23		imposed by this subsection (a) shall be 40 cents for each
24		person entering the grounds or enclosure of each organization
25		licensee and inter-track wagering licensee upon a ticket of
26		admission, and if such tickets are issued for more than one

SB1739 Engrossed - 234 - LRB098 10559 AMC 40804 b
1		day, 40 cents shall be paid for each person using such ticket
2		on each day that the same shall be used.
3		(b) Accurate records and books shall at all times be kept
4		and maintained by the organization licensees and inter-track
5		wagering licensees showing the admission tickets issued and
6		used on each racing day and the attendance thereat of each
7		horse racing meeting. The Board or its duly authorized
8		representative or representatives shall at all reasonable
9		times have access to the admission records of any organization
10		licensee and inter-track wagering licensee for the purpose of
11		examining and checking the same and ascertaining whether or not
12		the proper amount has been or is being paid the State of
13		Illinois as herein provided. The Board shall also require,
14		before issuing any license, that the licensee shall execute and
15		deliver to it a bond, payable to the State of Illinois, in such
16		sum as it shall determine, not, however, in excess of fifty
17		thousand dollars ($50,000), with a surety or sureties to be
18		approved by it, conditioned for the payment of all sums due and
19		payable or collected by it under this Section upon admission
20		fees received for any particular racing meetings. The Board may
21		also from time to time require sworn statements of the number
22		or numbers of such admissions and may prescribe blanks upon
23		which such reports shall be made. Any organization licensee or
24		inter-track wagering licensee failing or refusing to pay the
25		amount found to be due as herein provided, shall be deemed
26		guilty of a business offense and upon conviction shall be

SB1739 Engrossed - 235 - LRB098 10559 AMC 40804 b
1		punished by a fine of not more than five thousand dollars
2		($5,000) in addition to the amount due from such organization
3		licensee or inter-track wagering licensee as herein provided.
4		All fines paid into court by an organization licensee or
5		inter-track wagering licensee found guilty of violating this
6		Section shall be transmitted and paid over by the clerk of the
7		court to the Board. Beginning on the date when any organization
8		licensee begins conducting electronic gaming pursuant to an
9		electronic gaming license issued under the Illinois Gambling
10		Act, any fine imposed pursuant to this subsection (b) shall not
11		exceed $10,000.
12		(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
13		(230 ILCS 5/26) (from Ch. 8, par. 37-26)
14		Sec. 26. Wagering.
15		(a) Any licensee may conduct and supervise the pari-mutuel
16		system of wagering, as defined in Section 3.12 of this Act, on
17		horse races conducted by an Illinois organization licensee or
18		conducted at a racetrack located in another state or country
19		and televised in Illinois in accordance with subsection (g) of
20		Section 26 of this Act. Subject to the prior consent of the
21		Board, licensees may supplement any pari-mutuel pool in order
22		to guarantee a minimum distribution. Such pari-mutuel method of
23		wagering shall not, under any circumstances if conducted under
24		the provisions of this Act, be held or construed to be
25		unlawful, other statutes of this State to the contrary

SB1739 Engrossed - 236 - LRB098 10559 AMC 40804 b
1		notwithstanding. Subject to rules for advance wagering
2		promulgated by the Board, any licensee may accept wagers in
3		advance of the day of the race wagered upon occurs.
4		(b) Except for those gaming activities for which a license
5		is obtained and authorized under the Illinois Lottery Act, the
6		Charitable Games Act, the Raffles Act, or the Illinois Gambling
7		Act, no No other method of betting, pool making, wagering or
8		gambling shall be used or permitted by the licensee. Each
9		licensee may retain, subject to the payment of all applicable
10		taxes and purses, an amount not to exceed 17% of all money
11		wagered under subsection (a) of this Section, except as may
12		otherwise be permitted under this Act.
13		(b-5) An individual may place a wager under the pari-mutuel
14		system from any licensed location authorized under this Act
15		provided that wager is electronically recorded in the manner
16		described in Section 3.12 of this Act. Any wager made
17		electronically by an individual while physically on the
18		premises of a licensee shall be deemed to have been made at the
19		premises of that licensee.
20		(c) Until January 1, 2000, the sum held by any licensee for
21		payment of outstanding pari-mutuel tickets, if unclaimed prior
22		to December 31 of the next year, shall be retained by the
23		licensee for payment of such tickets until that date. Within 10
24		days thereafter, the balance of such sum remaining unclaimed,
25		less any uncashed supplements contributed by such licensee for
26		the purpose of guaranteeing minimum distributions of any

SB1739 Engrossed - 237 - LRB098 10559 AMC 40804 b
1		pari-mutuel pool, shall be paid to the Illinois Veterans'
2		Rehabilitation Fund of the State treasury, except as provided
3		in subsection (g) of Section 27 of this Act.
4		(c-5) Beginning January 1, 2000, the sum held by any
5		licensee for payment of outstanding pari-mutuel tickets, if
6		unclaimed prior to December 31 of the next year, shall be
7		retained by the licensee for payment of such tickets until that
8		date. Within 10 days thereafter, the balance of such sum
9		remaining unclaimed, less any uncashed supplements contributed
10		by such licensee for the purpose of guaranteeing minimum
11		distributions of any pari-mutuel pool, shall be evenly
12		distributed to the purse account of the organization licensee
13		and the organization licensee.
14		(d) A pari-mutuel ticket shall be honored until December 31
15		of the next calendar year, and the licensee shall pay the same
16		and may charge the amount thereof against unpaid money
17		similarly accumulated on account of pari-mutuel tickets not
18		presented for payment.
19		(e) No licensee shall knowingly permit any minor, other
20		than an employee of such licensee or an owner, trainer, jockey,
21		driver, or employee thereof, to be admitted during a racing
22		program unless accompanied by a parent or guardian, or any
23		minor to be a patron of the pari-mutuel system of wagering
24		conducted or supervised by it. The admission of any
25		unaccompanied minor, other than an employee of the licensee or
26		an owner, trainer, jockey, driver, or employee thereof at a

SB1739 Engrossed - 238 - LRB098 10559 AMC 40804 b
1		race track is a Class C misdemeanor.
2		(f) Notwithstanding the other provisions of this Act, an
3		organization licensee may contract with an entity in another
4		state or country to permit any legal wagering entity in another
5		state or country to accept wagers solely within such other
6		state or country on races conducted by the organization
7		licensee in this State. Beginning January 1, 2000, these wagers
8		shall not be subject to State taxation. Until January 1, 2000,
9		when the out-of-State entity conducts a pari-mutuel pool
10		separate from the organization licensee, a privilege tax equal
11		to 7 1/2% of all monies received by the organization licensee
12		from entities in other states or countries pursuant to such
13		contracts is imposed on the organization licensee, and such
14		privilege tax shall be remitted to the Department of Revenue
15		within 48 hours of receipt of the moneys from the simulcast.
16		When the out-of-State entity conducts a combined pari-mutuel
17		pool with the organization licensee, the tax shall be 10% of
18		all monies received by the organization licensee with 25% of
19		the receipts from this 10% tax to be distributed to the county
20		in which the race was conducted.
21		An organization licensee may permit one or more of its
22		races to be utilized for pari-mutuel wagering at one or more
23		locations in other states and may transmit audio and visual
24		signals of races the organization licensee conducts to one or
25		more locations outside the State or country and may also permit
26		pari-mutuel pools in other states or countries to be combined

SB1739 Engrossed - 239 - LRB098 10559 AMC 40804 b
1		with its gross or net wagering pools or with wagering pools
2		established by other states.
3		(g) A host track may accept interstate simulcast wagers on
4		horse races conducted in other states or countries and shall
5		control the number of signals and types of breeds of racing in
6		its simulcast program, subject to the disapproval of the Board.
7		The Board may prohibit a simulcast program only if it finds
8		that the simulcast program is clearly adverse to the integrity
9		of racing. The host track simulcast program shall include the
10		signal of live racing of all organization licensees. All
11		non-host licensees and advance deposit wagering licensees
12		shall carry the signal of and accept wagers on live racing of
13		all organization licensees. Advance deposit wagering licensees
14		shall not be permitted to accept out-of-state wagers on any
15		Illinois signal provided pursuant to this Section without the
16		approval and consent of the organization licensee providing the
17		signal. Non-host licensees may carry the host track simulcast
18		program and shall accept wagers on all races included as part
19		of the simulcast program upon which wagering is permitted. All
20		organization licensees shall provide their live signal to all
21		advance deposit wagering licensees for a simulcast commission
22		fee not to exceed 6% of the advance deposit wagering licensee's
23		Illinois handle on the organization licensee's signal without
24		prior approval by the Board. The Board may adopt rules under
25		which it may permit simulcast commission fees in excess of 6%.
26		The Board shall adopt rules limiting the interstate commission

SB1739 Engrossed - 240 - LRB098 10559 AMC 40804 b
1		fees charged to an advance deposit wagering licensee. The Board
2		shall adopt rules regarding advance deposit wagering on
3		interstate simulcast races that shall reflect, among other
4		things, the General Assembly's desire to maximize revenues to
5		the State, horsemen purses, and organizational licensees.
6		However, organization licensees providing live signals
7		pursuant to the requirements of this subsection (g) may
8		petition the Board to withhold their live signals from an
9		advance deposit wagering licensee if the organization licensee
10		discovers and the Board finds reputable or credible information
11		that the advance deposit wagering licensee is under
12		investigation by another state or federal governmental agency,
13		the advance deposit wagering licensee's license has been
14		suspended in another state, or the advance deposit wagering
15		licensee's license is in revocation proceedings in another
16		state. The organization licensee's provision of their live
17		signal to an advance deposit wagering licensee under this
18		subsection (g) pertains to wagers placed from within Illinois.
19		Advance deposit wagering licensees may place advance deposit
20		wagering terminals at wagering facilities as a convenience to
21		customers. The advance deposit wagering licensee shall not
22		charge or collect any fee from purses for the placement of the
23		advance deposit wagering terminals. The costs and expenses of
24		the host track and non-host licensees associated with
25		interstate simulcast wagering, other than the interstate
26		commission fee, shall be borne by the host track and all

SB1739 Engrossed - 241 - LRB098 10559 AMC 40804 b
1		non-host licensees incurring these costs. The interstate
2		commission fee shall not exceed 5% of Illinois handle on the
3		interstate simulcast race or races without prior approval of
4		the Board. The Board shall promulgate rules under which it may
5		permit interstate commission fees in excess of 5%. The
6		interstate commission fee and other fees charged by the sending
7		racetrack, including, but not limited to, satellite decoder
8		fees, shall be uniformly applied to the host track and all
9		non-host licensees.
10		Notwithstanding any other provision of this Act, for a
11		period of one year after the effective date of this amendatory
12		Act of the 98th General Assembly until January 1, 2013, an
13		organization licensee may maintain a system whereby advance
14		deposit wagering may take place or an organization licensee,
15		with the consent of the horsemen association representing the
16		largest number of owners, trainers, jockeys, or standardbred
17		drivers who race horses at that organization licensee's racing
18		meeting, may contract with another person to carry out a system
19		of advance deposit wagering. Such consent may not be
20		unreasonably withheld. All advance deposit wagers placed from
21		within Illinois must be placed through a Board-approved advance
22		deposit wagering licensee; no other entity may accept an
23		advance deposit wager from a person within Illinois. All
24		advance deposit wagering is subject to any rules adopted by the
25		Board. The Board may adopt rules necessary to regulate advance
26		deposit wagering through the use of emergency rulemaking in

SB1739 Engrossed - 242 - LRB098 10559 AMC 40804 b
1		accordance with Section 5-45 of the Illinois Administrative
2		Procedure Act. The General Assembly finds that the adoption of
3		rules to regulate advance deposit wagering is deemed an
4		emergency and necessary for the public interest, safety, and
5		welfare. An advance deposit wagering licensee may retain all
6		moneys as agreed to by contract with an organization licensee.
7		Any moneys retained by the organization licensee from advance
8		deposit wagering, not including moneys retained by the advance
9		deposit wagering licensee, shall be paid 50% to the
10		organization licensee's purse account and 50% to the
11		organization licensee. If more than one breed races at the same
12		race track facility, then the 50% of the moneys to be paid to
13		an organization licensee's purse account shall be allocated
14		among all organization licensees' purse accounts operating at
15		that race track facility proportionately based on the actual
16		number of host days that the Board grants to that breed at that
17		race track facility in the current calendar year. To the extent
18		any fees from advance deposit wagering conducted in Illinois
19		for wagers in Illinois or other states have been placed in
20		escrow or otherwise withheld from wagers pending a
21		determination of the legality of advance deposit wagering, no
22		action shall be brought to declare such wagers or the
23		disbursement of any fees previously escrowed 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

SB1739 Engrossed - 243 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 244 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 245 - LRB098 10559 AMC 40804 b
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.

SB1739 Engrossed - 246 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 247 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 248 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 249 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 250 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 251 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 252 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 253 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 254 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 255 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 256 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 257 - LRB098 10559 AMC 40804 b
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 than 4 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

SB1739 Engrossed - 258 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 259 - LRB098 10559 AMC 40804 b
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).

SB1739 Engrossed - 260 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 261 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 262 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 263 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 264 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 265 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 266 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 267 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 268 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 269 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 270 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 271 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 272 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 273 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 274 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 275 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 276 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 277 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 278 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 279 - LRB098 10559 AMC 40804 b
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.

SB1739 Engrossed - 280 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 281 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 282 - LRB098 10559 AMC 40804 b
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 fees from
25		wagering on live racing and from inter-track wagering required
26		to be collected from licensees and distributed under this Act

SB1739 Engrossed - 283 - LRB098 10559 AMC 40804 b
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,

SB1739 Engrossed - 284 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 285 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 286 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 287 - LRB098 10559 AMC 40804 b
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 Association have 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

SB1739 Engrossed - 288 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 289 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 290 - LRB098 10559 AMC 40804 b
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

SB1739 Engrossed - 291 - LRB098 10559 AMC 40804 b
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		The organization representing thoroughbred breeders and owners
17		shall cause all expenditures of monies received under this
18		subsection (i) to be audited at least annually by a registered
19		public accountant. The organization shall file copies of each
20		annual audit with the Racing Board, the Clerk of the House of
21		Representatives and the Secretary of the Senate, and shall make
22		copies of each annual audit available to the public upon
23		request and upon payment of the reasonable cost of photocopying
24		the requested number of copies. Such payments shall not reduce
25		any award to the owner of the horse or reduce the taxes payable
26		under this Act. Upon completion of its racing meet, each

SB1739 Engrossed - 292 - LRB098 10559 AMC 40804 b
1		organization licensee shall deliver to the organization
2		representing thoroughbred breeders and owners whose
3		representative serves on the Illinois Thoroughbred Breeders
4		Fund Advisory Board a listing of all the Illinois foaled and
5		the Illinois conceived and foaled horses which won breeders'
6		awards and the amount of such breeders' awards under this
7		subsection to verify accuracy of payments and assure proper
8		distribution of breeders' awards in accordance with the
9		provisions of this Act. Such payments shall be delivered by the
10		organization licensee within 30 days of the end of each race
11		meeting.
12		(j) A sum equal to 13% 12 1/2% of the first prize money won
13		in each race limited to Illinois foaled horses or Illinois
14		conceived and foaled horses, or both, shall be paid in the
15		following manner by the organization licensee conducting the
16		horse race meeting, 50% from the organization licensee's
17		account and 50% from the purse account of the licensee share of
18		the money wagered: 11 1/2% to the breeders of the horses in
19		each such race which are the official first, second, third and
20		fourth finishers and 1 1/2% 1% to the organization representing
21		thoroughbred breeders and owners whose representative serves
22		on the Illinois Thoroughbred Breeders Fund Advisory Board for
23		verifying the amounts of breeders' awards earned, assuring
24		their proper distribution in accordance with this Act, and
25		servicing and promoting the Illinois thoroughbred horse racing
26		industry. The organization representing thoroughbred breeders

SB1739 Engrossed - 293 - LRB098 10559 AMC 40804 b
1		and owners shall cause all expenditures of monies received
2		under this subsection (j) to be audited at least annually by a
3		registered public accountant. The organization shall file
4		copies of each annual audit with the Racing Board, the Clerk of
5		the House of Representatives and the Secretary of the Senate,
6		and shall make copies of each annual audit available to the
7		public upon request and upon payment of the reasonable cost of
8		photocopying the requested number of copies.
9		The 11 1/2% paid to the breeders in accordance with this
10		subsection shall be distributed as follows:
11		(1) 60% of such sum shall be paid to the breeder of the
12		horse which finishes in the official first position;
13		(2) 20% of such sum shall be paid to the breeder of the
14		horse which finishes in the official second position;
15		(3) 15% of such sum shall be paid to the breeder of the
16		horse which finishes in the official third position; and
17		(4) 5% of such sum shall be paid to the breeder of the
18		horse which finishes in the official fourth position.
19		Such payments shall not reduce any award to the owners of a
20		horse or reduce the taxes payable under this Act. Upon
21		completion of its racing meet, each organization licensee shall
22		deliver to the organization representing thoroughbred breeders
23		and owners whose representative serves on the Illinois
24		Thoroughbred Breeders Fund Advisory Board a listing of all the
25		Illinois foaled and the Illinois conceived and foaled horses
26		which won breeders' awards and the amount of such breeders'

SB1739 Engrossed - 294 - LRB098 10559 AMC 40804 b
1		awards in accordance with the provisions of this Act. Such
2		payments shall be delivered by the organization licensee within
3		30 days of the end of each race meeting.
4		(k) The term "breeder", as used herein, means the owner of
5		the mare at the time the foal is dropped. An "Illinois foaled
6		horse" is a foal dropped by a mare which enters this State on
7		or before December 1, in the year in which the horse is bred,
8		provided the mare remains continuously in this State until its
9		foal is born. An "Illinois foaled horse" also means a foal born
10		of a mare in the same year as the mare enters this State on or
11		before March 1, and remains in this State at least 30 days
12		after foaling, is bred back during the season of the foaling to
13		an Illinois Registered Stallion (unless a veterinarian
14		certifies that the mare should not be bred for health reasons),
15		and is not bred to a stallion standing in any other state
16		during the season of foaling. An "Illinois foaled horse" also
17		means a foal born in Illinois of a mare purchased at public
18		auction subsequent to the mare entering this State on or before
19		March 1 prior to February 1 of the foaling year providing the
20		mare is owned solely by one or more Illinois residents or an
21		Illinois entity that is entirely owned by one or more Illinois
22		residents.
23		(l) The Department of Agriculture shall, by rule, with the
24		advice and assistance of the Illinois Thoroughbred Breeders
25		Fund Advisory Board:
26		(1) Qualify stallions for Illinois breeding; such

SB1739 Engrossed - 295 - LRB098 10559 AMC 40804 b
1		stallions to stand for service within the State of Illinois
2		at the time of a foal's conception. Such stallion must not
3		stand for service at any place outside the State of
4		Illinois during the calendar year in which the foal is
5		conceived. The Department of Agriculture may assess and
6		collect an application fee of up to $500 fees for the
7		registration of Illinois-eligible stallions. All fees
8		collected are to be held in trust accounts for the purposes
9		set forth in this Act and in accordance with Section 205-15
10		of the Department of Agriculture Law paid into the Illinois
11		Thoroughbred Breeders Fund.
12		(2) Provide for the registration of Illinois conceived
13		and foaled horses and Illinois foaled horses. No such horse
14		shall compete in the races limited to Illinois conceived
15		and foaled horses or Illinois foaled horses or both unless
16		registered with the Department of Agriculture. The
17		Department of Agriculture may prescribe such forms as are
18		necessary to determine the eligibility of such horses. The
19		Department of Agriculture may assess and collect
20		application fees for the registration of Illinois-eligible
21		foals. All fees collected are to be held in trust accounts
22		for the purposes set forth in this Act and in accordance
23		with Section 205-15 of the Department of Agriculture Law
24		paid into the Illinois Thoroughbred Breeders Fund. No
25		person shall knowingly prepare or cause preparation of an
26		application for registration of such foals containing

SB1739 Engrossed - 296 - LRB098 10559 AMC 40804 b
1		false information.
2		(m) The Department of Agriculture, with the advice and
3		assistance of the Illinois Thoroughbred Breeders Fund Advisory
4		Board, shall provide that certain races limited to Illinois
5		conceived and foaled and Illinois foaled horses be stakes races
6		and determine the total amount of stakes and awards to be paid
7		to the owners of the winning horses in such races.
8		In determining the stakes races and the amount of awards
9		for such races, the Department of Agriculture shall consider
10		factors, including but not limited to, the amount of money
11		appropriated for the Illinois Thoroughbred Breeders Fund
12		program, organization licensees' contributions, availability
13		of stakes caliber horses as demonstrated by past performances,
14		whether the race can be coordinated into the proposed racing
15		dates within organization licensees' racing dates, opportunity
16		for colts and fillies and various age groups to race, public
17		wagering on such races, and the previous racing schedule.
18		(n) The Board and the organizational licensee shall notify
19		the Department of the conditions and minimum purses for races
20		limited to Illinois conceived and foaled and Illinois foaled
21		horses conducted for each organizational licensee conducting a
22		thoroughbred racing meeting. The Department of Agriculture
23		with the advice and assistance of the Illinois Thoroughbred
24		Breeders Fund Advisory Board may allocate monies for purse
25		supplements for such races. In determining whether to allocate
26		money and the amount, the Department of Agriculture shall

SB1739 Engrossed - 297 - LRB098 10559 AMC 40804 b
1		consider factors, including but not limited to, the amount of
2		money appropriated for the Illinois Thoroughbred Breeders Fund
3		program, the number of races that may occur, and the
4		organizational licensee's purse structure.
5		(o) In order to improve the breeding quality of
6		thoroughbred horses in the State, the General Assembly
7		recognizes that existing provisions of this Section to
8		encourage such quality breeding need to be revised and
9		strengthened. As such, a Thoroughbred Breeder's Program Task
10		Force is to be appointed by the Governor by September 1, 1999
11		to make recommendations to the General Assembly by no later
12		than March 1, 2000. This task force is to be composed of 2
13		representatives from the Illinois Thoroughbred Breeders and
14		Owners Foundation, 2 from the Illinois Thoroughbred Horsemen's
15		Association, 3 from Illinois race tracks operating
16		thoroughbred race meets for an average of at least 30 days in
17		the past 3 years, the Director of Agriculture, the Executive
18		Director of the Racing Board, who shall serve as Chairman.
19		(Source: P.A. 91-40, eff. 6-25-99.)
20		(230 ILCS 5/30.5)
21		Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
22		(a) The General Assembly declares that it is the policy of
23		this State to encourage the breeding of racing quarter horses
24		in this State and the ownership of such horses by residents of
25		this State in order to provide for sufficient numbers of high

SB1739 Engrossed - 298 - LRB098 10559 AMC 40804 b
1		quality racing quarter horses in this State and to establish
2		and preserve the agricultural and commercial benefits of such
3		breeding and racing industries to the State of Illinois. It is
4		the intent of the General Assembly to further this policy by
5		the provisions of this Act.
6		(b) There is hereby created non-appropriated trust a
7		special fund in the State Treasury to be known as the Illinois
8		Racing Quarter Horse Breeders Fund, which is held separately
9		from State moneys. Except as provided in subsection (g) of
10		Section 27 of this Act, 8.5% of all the moneys received by the
11		State as pari-mutuel taxes on quarter horse racing shall be
12		paid into the Illinois Racing Quarter Horse Breeders Fund. The
13		Illinois Racing Quarter Horse Breeders Fund shall not be
14		subject to administrative charges or chargebacks, including,
15		but not limited to, those authorized under Section 8h of the
16		State Finance Act.
17		(c) The Illinois Racing Quarter Horse Breeders Fund shall
18		be administered by the Department of Agriculture with the
19		advice and assistance of the Advisory Board created in
20		subsection (d) of this Section.
21		(d) The Illinois Racing Quarter Horse Breeders Fund
22		Advisory Board shall consist of the Director of the Department
23		of Agriculture, who shall serve as Chairman; a member of the
24		Illinois Racing Board, designated by it; one representative of
25		the organization licensees conducting pari-mutuel quarter
26		horse racing meetings, recommended by them; 2 representatives

SB1739 Engrossed - 299 - LRB098 10559 AMC 40804 b
1		of the Illinois Running Quarter Horse Association, recommended
2		by it; and the Superintendent of Fairs and Promotions from the
3		Department of Agriculture. Advisory Board members shall serve
4		for 2 years commencing January 1 of each odd numbered year. If
5		representatives have not been recommended by January 1 of each
6		odd numbered year, the Director of the Department of
7		Agriculture may make an appointment for the organization
8		failing to so recommend a member of the Advisory Board.
9		Advisory Board members shall receive no compensation for their
10		services as members but may be reimbursed for all actual and
11		necessary expenses and disbursements incurred in the execution
12		of their official duties.
13		(e) Moneys in No moneys shall be expended from the Illinois
14		Racing Quarter Horse Breeders Fund except as appropriated by
15		the General Assembly. Moneys appropriated from the Illinois
16		Racing Quarter Horse Breeders Fund shall be expended by the
17		Department of Agriculture, with the advice and assistance of
18		the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
19		for the following purposes only:
20		(1) To provide stakes and awards to be paid to the
21		owners of the winning horses in certain races. This
22		provision is limited to Illinois conceived and foaled
23		horses.
24		(2) To provide an award to the owner or owners of an
25		Illinois conceived and foaled horse that wins a race when
26		pari-mutuel wagering is conducted; providing the race is

SB1739 Engrossed - 300 - LRB098 10559 AMC 40804 b
1		not restricted to Illinois conceived and foaled horses.
2		(3) To provide purse money for an Illinois stallion
3		stakes program.
4		(4) To provide for purses to be distributed for the
5		running of races during the Illinois State Fair and the
6		DuQuoin State Fair exclusively for quarter horses
7		conceived and foaled in Illinois.
8		(5) To provide for purses to be distributed for the
9		running of races at Illinois county fairs exclusively for
10		quarter horses conceived and foaled in Illinois.
11		(6) To provide for purses to be distributed for running
12		races exclusively for quarter horses conceived and foaled
13		in Illinois at locations in Illinois determined by the
14		Department of Agriculture with advice and consent of the
15		Illinois Racing Quarter Horse Breeders Fund Advisory
16		Board.
17		(7) No less than 90% of all moneys appropriated from
18		the Illinois Racing Quarter Horse Breeders Fund shall be
19		expended for the purposes in items (1), (2), (3), (4), and
20		(5) of this subsection (e).
21		(8) To provide for research programs concerning the
22		health, development, and care of racing quarter horses.
23		(9) To provide for dissemination of public information
24		designed to promote the breeding of racing quarter horses
25		in Illinois.
26		(10) To provide for expenses incurred in the

SB1739 Engrossed - 301 - LRB098 10559 AMC 40804 b
1		administration of the Illinois Racing Quarter Horse
2		Breeders Fund.
3		(f) The Department of Agriculture shall, by rule, with the
4		advice and assistance of the Illinois Racing Quarter Horse
5		Breeders Fund Advisory Board:
6		(1) Qualify stallions for Illinois breeding; such
7		stallions to stand for service within the State of
8		Illinois, at the time of a foal's conception. Such stallion
9		must not stand for service at any place outside the State
10		of Illinois during the calendar year in which the foal is
11		conceived. The Department of Agriculture may assess and
12		collect application fees for the registration of
13		Illinois-eligible stallions. All fees collected are to be
14		paid into the Illinois Racing Quarter Horse Breeders Fund.
15		(2) Provide for the registration of Illinois conceived
16		and foaled horses. No such horse shall compete in the races
17		limited to Illinois conceived and foaled horses unless it
18		is registered with the Department of Agriculture. The
19		Department of Agriculture may prescribe such forms as are
20		necessary to determine the eligibility of such horses. The
21		Department of Agriculture may assess and collect
22		application fees for the registration of Illinois-eligible
23		foals. All fees collected are to be paid into the Illinois
24		Racing Quarter Horse Breeders Fund. No person shall
25		knowingly prepare or cause preparation of an application
26		for registration of such foals that contains false

SB1739 Engrossed - 302 - LRB098 10559 AMC 40804 b
1		information.
2		(g) The Department of Agriculture, with the advice and
3		assistance of the Illinois Racing Quarter Horse Breeders Fund
4		Advisory Board, shall provide that certain races limited to
5		Illinois conceived and foaled be stakes races and determine the
6		total amount of stakes and awards to be paid to the owners of
7		the winning horses in such races.
8		(Source: P.A. 91-40, eff. 6-25-99; revised 10-18-12.)
9		(230 ILCS 5/31) (from Ch. 8, par. 37-31)
10		Sec. 31. (a) The General Assembly declares that it is the
11		policy of this State to encourage the breeding of standardbred
12		horses in this State and the ownership of such horses by
13		residents of this State in order to provide for: sufficient
14		numbers of high quality standardbred horses to participate in
15		harness racing meetings in this State, and to establish and
16		preserve the agricultural and commercial benefits of such
17		breeding and racing industries to the State of Illinois. It is
18		the intent of the General Assembly to further this policy by
19		the provisions of this Section of this Act.
20		(b) Each organization licensee conducting a harness racing
21		meeting pursuant to this Act shall provide for at least two
22		races each race program limited to Illinois conceived and
23		foaled horses. A minimum of 6 races shall be conducted each
24		week limited to Illinois conceived and foaled horses. No horses
25		shall be permitted to start in such races unless duly

SB1739 Engrossed - 303 - LRB098 10559 AMC 40804 b
1		registered under the rules of the Department of Agriculture.
2		(b-5) Organization licensees, not including the Illinois
3		State Fair or the DuQuoin State Fair, shall provide stake races
4		and early closer races for Illinois conceived and foaled horses
5		so that purses distributed for such races shall be no less than
6		17% of total purses distributed for harness racing in that
7		calendar year in addition to any stakes payments and starting
8		fees contributed by horse owners.
9		(b-10) Each organization licensee conducting a harness
10		racing meeting pursuant to this Act shall provide an owner
11		award to be paid from the purse account equal to 25% of the
12		amount earned by Illinois conceived and foaled horses in races
13		that are not restricted to Illinois conceived and foaled
14		horses. The owner awards shall not be paid on races below the
15		$10,000 claiming class.
16		(c) Conditions of races under subsection (b) shall be
17		commensurate with past performance, quality and class of
18		Illinois conceived and foaled horses available. If, however,
19		sufficient competition cannot be had among horses of that class
20		on any day, the races may, with consent of the Board, be
21		eliminated for that day and substitute races provided.
22		(d) There is hereby created a special fund of the State
23		Treasury to be known as the Illinois Standardbred Breeders
24		Fund.
25		During the calendar year 1981, and each year thereafter,
26		except as provided in subsection (g) of Section 27 of this Act,

SB1739 Engrossed - 304 - LRB098 10559 AMC 40804 b
1		eight and one-half per cent of all the monies received by the
2		State as privilege taxes on harness racing meetings shall be
3		paid into the Illinois Standardbred Breeders Fund.
4		(e) The Illinois Standardbred Breeders Fund shall be
5		administered by the Department of Agriculture with the
6		assistance and advice of the Advisory Board created in
7		subsection (f) of this Section.
8		(f) The Illinois Standardbred Breeders Fund Advisory Board
9		is hereby created. The Advisory Board shall consist of the
10		Director of the Department of Agriculture, who shall serve as
11		Chairman; the Superintendent of the Illinois State Fair; a
12		member of the Illinois Racing Board, designated by it; a
13		representative of the Illinois Standardbred Owners and
14		Breeders Association, recommended by it; a representative of
15		the Illinois Association of Agricultural Fairs, recommended by
16		it, such representative to be from a fair at which Illinois
17		conceived and foaled racing is conducted; a representative of
18		the organization licensees conducting harness racing meetings,
19		recommended by them and a representative of the Illinois
20		Harness Horsemen's Association, recommended by it. Advisory
21		Board members shall serve for 2 years commencing January 1, of
22		each odd numbered year. If representatives of the Illinois
23		Standardbred Owners and Breeders Associations, the Illinois
24		Association of Agricultural Fairs, the Illinois Harness
25		Horsemen's Association, and the organization licensees
26		conducting harness racing meetings have not been recommended by

SB1739 Engrossed - 305 - LRB098 10559 AMC 40804 b
1		January 1, of each odd numbered year, the Director of the
2		Department of Agriculture shall make an appointment for the
3		organization failing to so recommend a member of the Advisory
4		Board. Advisory Board members shall receive no compensation for
5		their services as members but shall be reimbursed for all
6		actual and necessary expenses and disbursements incurred in the
7		execution of their official duties.
8		(g) No monies shall be expended from the Illinois
9		Standardbred Breeders Fund except as appropriated by the
10		General Assembly. Monies appropriated from the Illinois
11		Standardbred Breeders Fund shall be expended by the Department
12		of Agriculture, with the assistance and advice of the Illinois
13		Standardbred Breeders Fund Advisory Board for the following
14		purposes only:
15		1. To provide purses for races limited to Illinois
16		conceived and foaled horses at the State Fair and the
17		DuQuoin State Fair.
18		2. To provide purses for races limited to Illinois
19		conceived and foaled horses at county fairs.
20		3. To provide purse supplements for races limited to
21		Illinois conceived and foaled horses conducted by
22		associations conducting harness racing meetings.
23		4. No less than 75% of all monies in the Illinois
24		Standardbred Breeders Fund shall be expended for purses in
25		1, 2 and 3 as shown above.
26		5. In the discretion of the Department of Agriculture

SB1739 Engrossed - 306 - LRB098 10559 AMC 40804 b
1		to provide awards to harness breeders of Illinois conceived
2		and foaled horses which win races conducted by organization
3		licensees conducting harness racing meetings. A breeder is
4		the owner of a mare at the time of conception. No more than
5		10% of all monies appropriated from the Illinois
6		Standardbred Breeders Fund shall be expended for such
7		harness breeders awards. No more than 25% of the amount
8		expended for harness breeders awards shall be expended for
9		expenses incurred in the administration of such harness
10		breeders awards.
11		6. To pay for the improvement of racing facilities
12		located at the State Fair and County fairs.
13		7. To pay the expenses incurred in the administration
14		of the Illinois Standardbred Breeders Fund.
15		8. To promote the sport of harness racing, including
16		grants up to a maximum of $7,500 per fair per year for
17		conducting pari-mutuel wagering during the advertised
18		dates of a county fair.
19		9. To pay up to $50,000 annually for the Department of
20		Agriculture to conduct drug testing at county fairs racing
21		standardbred horses.
22		10. To pay up to $100,000 annually for distribution to
23		Illinois county fairs to supplement premiums offered in
24		junior classes.
25		11. To pay up to $100,000 annually for division and
26		equal distribution to the animal sciences department of

SB1739 Engrossed - 307 - LRB098 10559 AMC 40804 b
1		each Illinois public university system engaged in equine
2		research and education on or before the effective date of
3		this amendatory Act of the 98th General Assembly for equine
4		research and education.
5		(h) (Blank) Whenever the Governor finds that the amount in
6		the Illinois Standardbred Breeders Fund is more than the total
7		of the outstanding appropriations from such fund, the Governor
8		shall notify the State Comptroller and the State Treasurer of
9		such fact. The Comptroller and the State Treasurer, upon
10		receipt of such notification, shall transfer such excess amount
11		from the Illinois Standardbred Breeders Fund to the General
12		Revenue Fund.
13		(i) A sum equal to 13% 12 1/2% of the first prize money of
14		the gross every purse won by an Illinois conceived and foaled
15		horse shall be paid 50% by the organization licensee conducting
16		the horse race meeting to the breeder of such winning horse
17		from the organization licensee's account and 50% from the purse
18		account of the licensee share of the money wagered. Such
19		payment shall not reduce any award to the owner of the horse or
20		reduce the taxes payable under this Act. Such payment shall be
21		delivered by the organization licensee at the end of each
22		quarter race meeting.
23		(j) The Department of Agriculture shall, by rule, with the
24		assistance and advice of the Illinois Standardbred Breeders
25		Fund Advisory Board:
26		1. Qualify stallions for Illinois Standardbred

SB1739 Engrossed - 308 - LRB098 10559 AMC 40804 b
1		Breeders Fund breeding; such stallion shall be owned by a
2		resident of the State of Illinois or by an Illinois
3		corporation all of whose shareholders, directors, officers
4		and incorporators are residents of the State of Illinois.
5		Such stallion shall stand for service at and within the
6		State of Illinois at the time of a foal's conception, and
7		such stallion must not stand for service at any place, nor
8		may semen from such stallion be transported, outside the
9		State of Illinois during that calendar year in which the
10		foal is conceived and that the owner of the stallion was
11		for the 12 months prior, a resident of Illinois. Foals
12		conceived outside the State of Illinois from shipped semen
13		from a stallion qualified for breeders' awards under this
14		Section are not eligible to participate in the Illinois
15		conceived and foaled program. The articles of agreement of
16		any partnership, joint venture, limited partnership,
17		syndicate, association or corporation and any bylaws and
18		stock certificates must contain a restriction that
19		provides that the ownership or transfer of interest by any
20		one of the persons a party to the agreement can only be
21		made to a person who qualifies as an Illinois resident.
22		2. Provide for the registration of Illinois conceived
23		and foaled horses and no such horse shall compete in the
24		races limited to Illinois conceived and foaled horses
25		unless registered with the Department of Agriculture. The
26		Department of Agriculture may prescribe such forms as may

SB1739 Engrossed - 309 - LRB098 10559 AMC 40804 b
1		be necessary to determine the eligibility of such horses.
2		No person shall knowingly prepare or cause preparation of
3		an application for registration of such foals containing
4		false information. A mare (dam) must be in the state at
5		least 180 30 days prior to foaling or remain in the State
6		at least 30 days at the time of foaling. Beginning with the
7		1996 breeding season and for foals of 1997 and thereafter,
8		a foal conceived in the State of Illinois by transported
9		fresh semen may be eligible for Illinois conceived and
10		foaled registration provided all breeding and foaling
11		requirements are met. The stallion must be qualified for
12		Illinois Standardbred Breeders Fund breeding at the time of
13		conception and the mare must be inseminated within the
14		State of Illinois. The foal must be dropped in Illinois and
15		properly registered with the Department of Agriculture in
16		accordance with this Act.
17		3. Provide that at least a 5 day racing program shall
18		be conducted at the State Fair each year, which program
19		shall include at least the following races limited to
20		Illinois conceived and foaled horses: (a) a two year old
21		Trot and Pace, and Filly Division of each; (b) a three year
22		old Trot and Pace, and Filly Division of each; (c) an aged
23		Trot and Pace, and Mare Division of each.
24		4. Provide for the payment of nominating, sustaining
25		and starting fees for races promoting the sport of harness
26		racing and for the races to be conducted at the State Fair

SB1739 Engrossed - 310 - LRB098 10559 AMC 40804 b
1		as provided in subsection (j) 3 of this Section provided
2		that the nominating, sustaining and starting payment
3		required from an entrant shall not exceed 2% of the purse
4		of such race. All nominating, sustaining and starting
5		payments shall be held for the benefit of entrants and
6		shall be paid out as part of the respective purses for such
7		races. Nominating, sustaining and starting fees shall be
8		held in trust accounts for the purposes as set forth in
9		this Act and in accordance with Section 205-15 of the
10		Department of Agriculture Law (20 ILCS 205/205-15).
11		5. Provide for the registration with the Department of
12		Agriculture of Colt Associations or county fairs desiring
13		to sponsor races at county fairs.
14		6. Provide for the promotion of producing standardbred
15		racehorses by providing a bonus award program for owners of
16		2-year-old horses that win multiple major stakes races that
17		are limited to Illinois conceived and foaled horses.
18		(k) The Department of Agriculture, with the advice and
19		assistance of the Illinois Standardbred Breeders Fund Advisory
20		Board, may allocate monies for purse supplements for such
21		races. In determining whether to allocate money and the amount,
22		the Department of Agriculture shall consider factors,
23		including but not limited to, the amount of money appropriated
24		for the Illinois Standardbred Breeders Fund program, the number
25		of races that may occur, and an organizational licensee's purse
26		structure. The organizational licensee shall notify the

SB1739 Engrossed - 311 - LRB098 10559 AMC 40804 b
1		Department of Agriculture of the conditions and minimum purses
2		for races limited to Illinois conceived and foaled horses to be
3		conducted by each organizational licensee conducting a harness
4		racing meeting for which purse supplements have been
5		negotiated.
6		(l) All races held at county fairs and the State Fair which
7		receive funds from the Illinois Standardbred Breeders Fund
8		shall be conducted in accordance with the rules of the United
9		States Trotting Association unless otherwise modified by the
10		Department of Agriculture.
11		(m) At all standardbred race meetings held or conducted
12		under authority of a license granted by the Board, and at all
13		standardbred races held at county fairs which are approved by
14		the Department of Agriculture or at the Illinois or DuQuoin
15		State Fairs, no one shall jog, train, warm up or drive a
16		standardbred horse unless he or she is wearing a protective
17		safety helmet, with the chin strap fastened and in place, which
18		meets the standards and requirements as set forth in the 1984
19		Standard for Protective Headgear for Use in Harness Racing and
20		Other Equestrian Sports published by the Snell Memorial
21		Foundation, or any standards and requirements for headgear the
22		Illinois Racing Board may approve. Any other standards and
23		requirements so approved by the Board shall equal or exceed
24		those published by the Snell Memorial Foundation. Any
25		equestrian helmet bearing the Snell label shall be deemed to
26		have met those standards and requirements.

SB1739 Engrossed - 312 - LRB098 10559 AMC 40804 b
1		(Source: P.A. 91-239, eff. 1-1-00.)
2		(230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)
3		Sec. 31.1. (a) Organization licensees collectively shall
4		contribute annually to charity the sum of $1,000,000 $750,000
5		to non-profit organizations that provide medical and family,
6		counseling, and similar services to persons who reside or work
7		on the backstretch of Illinois racetracks. These contributions
8		shall be collected as follows: (i) no later than July 1st of
9		each year the Board shall assess each organization licensee,
10		except those tracks which are not within 100 miles of each
11		other which tracks shall pay $40,000 $30,000 annually apiece
12		into the Board charity fund, that amount which equals $920,000
13		$690,000 multiplied by the amount of pari-mutuel wagering
14		handled by the organization licensee in the year preceding
15		assessment and divided by the total pari-mutuel wagering
16		handled by all Illinois organization licensees, except those
17		tracks which are not within 100 miles of each other, in the
18		year preceding assessment; (ii) notice of the assessed
19		contribution shall be mailed to each organization licensee;
20		(iii) within thirty days of its receipt of such notice, each
21		organization licensee shall remit the assessed contribution to
22		the Board. If an organization licensee wilfully fails to so
23		remit the contribution, the Board may revoke its license to
24		conduct horse racing.
25		(b) No later than October 1st of each year, any qualified

SB1739 Engrossed - 313 - LRB098 10559 AMC 40804 b
1		charitable organization seeking an allotment of contributed
2		funds shall submit to the Board an application for those funds,
3		using the Board's approved form. No later than December 31st of
4		each year, the Board shall distribute all such amounts
5		collected that year to such charitable organization
6		applicants.
7		(Source: P.A. 87-110.)
8		(230 ILCS 5/32.1)
9		Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
10		real estate equalization.
11		(a) In order to encourage new investment in Illinois
12		racetrack facilities and mitigate differing real estate tax
13		burdens among all racetracks, the licensees affiliated or
14		associated with each racetrack that has been awarded live
15		racing dates in the current year shall receive an immediate
16		pari-mutuel tax credit in an amount equal to the greater of (i)
17		50% of the amount of the real estate taxes paid in the prior
18		year attributable to that racetrack, or (ii) the amount by
19		which the real estate taxes paid in the prior year attributable
20		to that racetrack exceeds 60% of the average real estate taxes
21		paid in the prior year for all racetracks awarded live horse
22		racing meets in the current year.
23		Each year, regardless of whether the organization licensee
24		conducted live racing in the year of certification, the Board
25		shall certify in writing, prior to December 31, the real estate

SB1739 Engrossed - 314 - LRB098 10559 AMC 40804 b
1		taxes paid in that year for each racetrack and the amount of
2		the pari-mutuel tax credit that each organization licensee,
3		intertrack wagering licensee, and intertrack wagering location
4		licensee that derives its license from such racetrack is
5		entitled in the succeeding calendar year. The real estate taxes
6		considered under this Section for any racetrack shall be those
7		taxes on the real estate parcels and related facilities used to
8		conduct a horse race meeting and inter-track wagering at such
9		racetrack under this Act. In no event shall the amount of the
10		tax credit under this Section exceed the amount of pari-mutuel
11		taxes otherwise calculated under this Act. The amount of the
12		tax credit under this Section shall be retained by each
13		licensee and shall not be subject to any reallocation or
14		further distribution under this Act. The Board may promulgate
15		emergency rules to implement this Section.
16		(b) Beginning on January 1 following the calendar year
17		during which an organization licensee begins conducting
18		electronic gaming operations pursuant to an electronic gaming
19		license issued under the Illinois Gambling Act, the
20		organization licensee shall be ineligible to receive a tax
21		credit under this Section.
22		(Source: P.A. 91-40, eff. 6-25-99.)
23		(230 ILCS 5/34.3 new)
24		Sec. 34.3. Drug testing. The Illinois Racing Board and the
25		Department of Agriculture shall jointly establish a program for

SB1739 Engrossed - 315 - LRB098 10559 AMC 40804 b
1		the purpose of conducting drug testing of horses at county
2		fairs and shall adopt any rules necessary for enforcement of
3		the program. The rules shall include appropriate penalties for
4		violations.
5		(230 ILCS 5/36) (from Ch. 8, par. 37-36)
6		Sec. 36. (a) Whoever administers or conspires to administer
7		to any horse a hypnotic, narcotic, stimulant, depressant or any
8		chemical substance which may affect the speed of a horse at any
9		time in any race where the purse or any part of the purse is
10		made of money authorized by any Section of this Act, except
11		those chemical substances permitted by ruling of the Board,
12		internally, externally or by hypodermic method in a race or
13		prior thereto, or whoever knowingly enters a horse in any race
14		within a period of 24 hours after any hypnotic, narcotic,
15		stimulant, depressant or any other chemical substance which may
16		affect the speed of a horse at any time, except those chemical
17		substances permitted by ruling of the Board, has been
18		administered to such horse either internally or externally or
19		by hypodermic method for the purpose of increasing or retarding
20		the speed of such horse shall be guilty of a Class 4 felony.
21		The Board shall suspend or revoke such violator's license.
22		(b) The term "hypnotic" as used in this Section includes
23		all barbituric acid preparations and derivatives.
24		(c) The term "narcotic" as used in this Section includes
25		opium and all its alkaloids, salts, preparations and

SB1739 Engrossed - 316 - LRB098 10559 AMC 40804 b
1		derivatives, cocaine and all its salts, preparations and
2		derivatives and substitutes.
3		(d) The provisions of this Section 36 and the treatment
4		authorized herein apply to horses entered in and competing in
5		race meetings as defined in Section 3.07 of this Act and to
6		horses entered in and competing at any county fair.
7		(Source: P.A. 79-1185.)
8		(230 ILCS 5/39.2 new)
9		Sec. 39.2. Prohibition of political contributions from
10		certain licensees and applicants.
11		(a) The General Assembly has a compelling interest in
12		protecting the integrity of both the electoral process and the
13		legislative process by preventing corruption and the
14		appearance of corruption which may arise through permitting
15		certain political campaign contributions by certain persons
16		involved in the horse racing industry and regulated by the
17		State. Unlike most other regulated industries, horse racing is
18		especially susceptible to corruption and potential criminal
19		influence. In Illinois, only licensed horse racing is legal and
20		all other such activities are strictly prohibited. Given these
21		circumstances, it is imperative to eliminate any potential
22		corrupt influence in the horse racing industry and the
23		electoral process.
24		Banning political campaign contributions by certain
25		persons subject to this Section to State officeholders and

SB1739 Engrossed - 317 - LRB098 10559 AMC 40804 b
1		candidates for such offices and to county and municipal
2		officeholders and candidates for such offices in counties and
3		municipalities that receive financial benefits from horse
4		racing is necessary to prevent corruption and the appearance of
5		corruption that may arise when political campaign
6		contributions and horse racing that is regulated by the State
7		and that confers benefits on counties and municipalities are
8		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

SB1739 Engrossed - 318 - LRB098 10559 AMC 40804 b
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, and (iii) the
7		spouse of the persons described in items (i) and (ii).
8		"Business entity" means any entity doing business for
9		profit, whether organized as a corporation, partnership, sole
10		proprietorship, limited liability company, or otherwise.
11		"Contribution" means a contribution as defined in Section
12		9-1.4 of the Election Code.
13		"Declared candidate" means a person who has filed a
14		statement of candidacy and petition for nomination or election
15		in the principal office of the State Board of Elections, or in
16		the office of the appropriate election authority for any county
17		or municipality in which a race track is located.
18		"Executive employee" means (i) any person who is an officer
19		or director or who fulfills duties equivalent to those of an
20		officer or director of a business entity applying for or
21		holding a license and (ii) any employee of such business entity
22		who is required to register under the Lobbyist Registration
23		Act.
24		"License" means any organization, inter-track wagering,
25		inter-track wagering location, advance deposit wagering or
26		concessionaire license issued pursuant to this Act.

SB1739 Engrossed - 319 - LRB098 10559 AMC 40804 b
1		"Officeholder" means the Governor, Lieutenant Governor,
2		Attorney General, Secretary of State, Comptroller, Treasurer,
3		member of the General Assembly, or any officeholder in any
4		county or municipality in which a race track is located.
5		(c) Any person or business entity applying for or holding a
6		license, any affiliated entities or persons of such business
7		entity, any horsemen's association, and any entities or persons
8		soliciting a contribution or causing a contribution to be made
9		on behalf of such person, business entity, or horsemen's
10		association, are prohibited from making any contribution to any
11		officeholder or declared candidate or any political committee
12		affiliated with any officeholder or declared candidate, as
13		defined in Section 9-1.8 of the Election Code. This prohibition
14		shall commence upon filing of an application for a license and
15		shall continue for a period of 2 years after termination,
16		suspension or revocation of the license.
17		The Board shall have authority to suspend, revoke, or
18		restrict the license and to impose civil penalties of up to
19		$100,000 for each violation of this subsection (c). A notice of
20		each such violation and the penalty imposed shall be published
21		on the Board's Internet website and in the Illinois Register.
22		Payments received by the State pursuant to this subsection
23		shall be deposited into the General Revenue Fund.
24		Any officeholder or declared candidate or any political
25		committee affiliated with any officeholder or declared
26		candidate that has received a contribution in violation of this

SB1739 Engrossed - 320 - LRB098 10559 AMC 40804 b
1		subsection (c) shall pay an amount equal to the value of the
2		contribution to the State no more than 30 days after notice of
3		the violation concerning the contribution appears in the
4		Illinois Register. Payments received by the State pursuant to
5		this subsection (c) shall be deposited into the General Revenue
6		Fund.
7		(d) The Board shall post on its website a list of all
8		persons, business entities, horsemen's associations, and
9		affiliated entities prohibited from making contributions to
10		any officeholder or declared candidate political committee
11		pursuant to subsection (c), which list shall be updated and
12		published, at a minimum, every 6 months.
13		Any person, business entity, horsemen's association, or
14		affiliated entity prohibited from making contributions to any
15		officeholder or declared candidate political committee
16		pursuant to subsection (c) shall notify the Board within 7 days
17		after discovering any necessary change or addition to the
18		information relating to that person, business entity,
19		horsemen's association, or affiliated entity contained in the
20		list.
21		An individual who acts in good faith and in reliance on any
22		information contained in the list shall not be subject to any
23		penalties or liability imposed for a violation of this Section.
24		(e) If any provision of this Section is held invalid or its
25		application to any person or circumstance is held invalid, the
26		invalidity of that provision or application does not affect the

SB1739 Engrossed - 321 - LRB098 10559 AMC 40804 b
1		other provisions or applications of this Section that can be
2		given effect without the invalid application or provision.
3		(230 ILCS 5/40) (from Ch. 8, par. 37-40)
4		Sec. 40. (a) The imposition of any fine or penalty provided
5		in this Act shall not preclude the Board in its rules and
6		regulations from imposing a fine or penalty for any other
7		action which, in the Board's discretion, is a detriment or
8		impediment to horse racing.
9		(b) The Director of Agriculture or his or her authorized
10		representative shall impose the following monetary penalties
11		and hold administrative hearings as required for failure to
12		submit the following applications, lists, or reports within the
13		time period, date or manner required by statute or rule or for
14		removing a foal from Illinois prior to inspection:
15		(1) late filing of a renewal application for offering
16		or standing stallion for service:
17		(A) if an application is submitted no more than 30
18		days late, $50;
19		(B) if an application is submitted no more than 45
20		days late, $150; or
21		(C) if an application is submitted more than 45
22		days late, if filing of the application is allowed
23		under an administrative hearing, $250;
24		(2) late filing of list or report of mares bred:
25		(A) if a list or report is submitted no more than

SB1739 Engrossed - 322 - LRB098 10559 AMC 40804 b
1		30 days late, $50;
2		(B) if a list or report is submitted no more than
3		60 days late $150; or
4		(C) if a list or report is submitted more than 60
5		days late, if filing of the list or report is allowed
6		under an administrative hearing, $250;
7		(3) filing an Illinois foaled thoroughbred mare status
8		report after the statutory deadline as provided in
9		subsection (k) of Section 30 of this Act December 31:
10		(A) if a report is submitted no more than 30 days
11		late, $50;
12		(B) if a report is submitted no more than 90 days
13		late, $150;
14		(C) if a report is submitted no more than 150 days
15		late, $250; or
16		(D) if a report is submitted more than 150 days
17		late, if filing of the report is allowed under an
18		administrative hearing, $500;
19		(4) late filing of application for foal eligibility
20		certificate:
21		(A) if an application is submitted no more than 30
22		days late, $50;
23		(B) if an application is submitted no more than 90
24		days late, $150;
25		(C) if an application is submitted no more than 150
26		days late, $250; or

SB1739 Engrossed - 323 - LRB098 10559 AMC 40804 b
1		(D) if an application is submitted more than 150
2		days late, if filing of the application is allowed
3		under an administrative hearing, $500;
4		(5) failure to report the intent to remove a foal from
5		Illinois prior to inspection, identification and
6		certification by a Department of Agriculture investigator,
7		$50; and
8		(6) if a list or report of mares bred is incomplete,
9		$50 per mare not included on the list or report.
10		Any person upon whom monetary penalties are imposed under
11		this Section 3 times within a 5 year period shall have any
12		further monetary penalties imposed at double the amounts set
13		forth above. All monies assessed and collected for violations
14		relating to thoroughbreds shall be paid into the Thoroughbred
15		Breeders Fund. All monies assessed and collected for violations
16		relating to standardbreds shall be paid into the Standardbred
17		Breeders Fund.
18		(Source: P.A. 87-397.)
19		(230 ILCS 5/54.75)
20		Sec. 54.75. Horse Racing Equity Trust Fund.
21		(a) There is created a Fund to be known as the Horse Racing
22		Equity Trust Fund, which is a non-appropriated trust fund held
23		separate and apart from State moneys. The Fund shall consist of
24		moneys paid into it by owners licensees under the Illinois
25		Riverboat Gambling Act for the purposes described in this

SB1739 Engrossed - 324 - LRB098 10559 AMC 40804 b
1		Section. The Fund shall be administered by the Board. Moneys in
2		the Fund shall be distributed as directed and certified by the
3		Board in accordance with the provisions of subsection (b).
4		(b) The moneys deposited into the Fund, plus any accrued
5		interest on those moneys, shall be distributed within 10 days
6		after those moneys are deposited into the Fund as follows:
7		(1) Sixty percent of all moneys distributed under this
8		subsection shall be distributed to organization licensees
9		to be distributed at their race meetings as purses.
10		Fifty-seven percent of the amount distributed under this
11		paragraph (1) shall be distributed for thoroughbred race
12		meetings and 43% shall be distributed for standardbred race
13		meetings. Within each breed, moneys shall be allocated to
14		each organization licensee's purse fund in accordance with
15		the ratio between the purses generated for that breed by
16		that licensee during the prior calendar year and the total
17		purses generated throughout the State for that breed during
18		the prior calendar year by licensees in the current
19		calendar year.
20		(2) The remaining 40% of the moneys distributed under
21		this subsection (b) shall be distributed as follows:
22		(A) 11% shall be distributed to any person (or its
23		successors or assigns) who had operating control of a
24		racetrack that conducted live racing in 2002 at a
25		racetrack in a county with at least 230,000 inhabitants
26		that borders the Mississippi River and is a licensee in

SB1739 Engrossed - 325 - LRB098 10559 AMC 40804 b
1		the current year; and
2		(B) the remaining 89% shall be distributed pro rata
3		according to the aggregate proportion of total handle
4		from wagering on live races conducted in Illinois
5		(irrespective of where the wagers are placed) for
6		calendar years 2004 and 2005 to any person (or its
7		successors or assigns) who (i) had majority operating
8		control of a racing facility at which live racing was
9		conducted in calendar year 2002, (ii) is a licensee in
10		the current year, and (iii) is not eligible to receive
11		moneys under subparagraph (A) of this paragraph (2).
12		The moneys received by an organization licensee
13		under this paragraph (2) shall be used by each
14		organization licensee to improve, maintain, market,
15		and otherwise operate its racing facilities to conduct
16		live racing, which shall include backstretch services
17		and capital improvements related to live racing and the
18		backstretch. Any organization licensees sharing common
19		ownership may pool the moneys received and spent at all
20		racing facilities commonly owned in order to meet these
21		requirements.
22		If any person identified in this paragraph (2) becomes
23		ineligible to receive moneys from the Fund, such amount
24		shall be redistributed among the remaining persons in
25		proportion to their percentages otherwise calculated.
26		(c) The Board shall monitor organization licensees to

SB1739 Engrossed - 326 - LRB098 10559 AMC 40804 b
1		ensure that moneys paid to organization licensees under this
2		Section are distributed by the organization licensees as
3		provided in subsection (b).
4		(Source: P.A. 95-1008, eff. 12-15-08.)
5		(230 ILCS 5/56 new)
6		Sec. 56. Electronic gaming.
7		(a) A person, firm, corporation, or limited liability
8		company having operating control of a race track may apply to
9		the Gaming Board for an electronic gaming license. An
10		electronic gaming license shall authorize its holder to conduct
11		electronic gaming on the grounds of the race track controlled
12		by the licensee's race track. Only one electronic gaming
13		license may be awarded for any race track. A holder of an
14		electronic gaming license shall be subject to the Illinois
15		Gambling Act and rules of the Illinois Gaming Board concerning
16		electronic gaming. If the person, firm, corporation, or limited
17		liability company having operating control of a race track is
18		found by the Illinois Gaming Board to be unsuitable for an
19		electronic gaming license under the Illinois Gambling Act and
20		rules of the Gaming Board, that person, firm, corporation, or
21		limited liability company shall not be granted an electronic
22		gaming license. Each license shall specify the number of gaming
23		positions that its holder may operate.
24		An electronic gaming licensee may not permit persons under
25		21 years of age to be present in its electronic gaming

SB1739 Engrossed - 327 - LRB098 10559 AMC 40804 b
1		facility, but the licensee may accept wagers on live racing and
2		inter-track wagers at its electronic gaming facility.
3		(b) For purposes of this subsection, "adjusted gross
4		receipts" means an electronic gaming licensee's gross receipts
5		less winnings paid to wagerers and shall also include any
6		amounts that would otherwise be deducted pursuant to subsection
7		(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
8		gross receipts by an electronic gaming licensee from electronic
9		gaming remaining after the payment of taxes under Section 13 of
10		the Illinois Gambling Act shall be distributed as follows:
11		(1) Amounts shall be paid to the purse account at the
12		track at which the organization licensee is conducting
13		racing equal to the following:
14		12.75% of annual adjusted gross receipts up to and
15		including $75,000,000;
16		20% of annual adjusted gross receipts in excess of
17		$75,000,000 but not exceeding $100,000,000;
18		26.5% of annual adjusted gross receipts in excess
19		of $100,000,000 but not exceeding $125,000,000; and
20		20.5% of annual adjusted gross receipts in excess
21		of $125,000,000.
22		(2) The remainder shall be retained by the electronic
23		gaming licensee.
24		(c) Electronic gaming receipts placed into the purse
25		account of an organization licensee racing thoroughbred horses
26		shall be used for purses, for health care services or worker's

SB1739 Engrossed - 328 - LRB098 10559 AMC 40804 b
1		compensation for racing industry workers, for equine research,
2		for programs to care for and transition injured and retired
3		thoroughbred horses that race at the race track, or for horse
4		ownership promotion, in accordance with the agreement of the
5		horsemen's association representing the largest number of
6		owners and trainers who race at that organization licensee's
7		race meetings.
8		Annually, from the purse account of an organization
9		licensee racing thoroughbred horses in this State, except for
10		in Madison County, an amount equal to 12% of the electronic
11		gaming receipts placed into the purse accounts shall be paid to
12		the Illinois Thoroughbred Breeders Fund and shall be used for
13		owner awards; a stallion program pursuant to paragraph (3) of
14		subsection (g) of Section 30 of this Act; and Illinois
15		conceived and foaled stakes races pursuant to paragraph (2) of
16		subsection (g) of Section 30 of this Act, as specifically
17		designated by the horsemen's association representing the
18		largest number of owners and trainers who race at the
19		organization licensee's race meetings.
20		Annually, from the purse account of an organization
21		licensee racing thoroughbred horses in Madison County, an
22		amount equal to 10% of the electronic gaming receipts placed
23		into the purse accounts shall be paid to the Illinois
24		Thoroughbred Breeders Fund and shall be used for owner awards;
25		a stallion program pursuant to paragraph (3) of subsection (g)
26		of Section 30 of this Act; and Illinois conceived and foaled

SB1739 Engrossed - 329 - LRB098 10559 AMC 40804 b
1		stakes races pursuant to paragraph (2) of subsection (g) of
2		Section 30 of this Act, as specifically designated by the
3		horsemen's association representing the largest number of
4		owners and trainers who race at the organization licensee's
5		race meetings.
6		Annually, from the purse account of an organization
7		licensee conducting thoroughbred races at a race track in
8		Madison County, an amount equal to 1% of the electronic gaming
9		receipts distributed to purses per subsection (b) of this
10		Section 56 shall be paid as follows: 0.33 1/3% to Southern
11		Illinois University Department of Animal Sciences for equine
12		research and education, an amount equal to 0.33 1/3% of the
13		electronic gaming receipts shall be used to operate laundry
14		facilities or a kitchen for backstretch workers at that race
15		track, and an amount equal to 0.33 1/3% of the electronic
16		gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)
17		non-profit organization that cares for injured and unwanted
18		horses that race at that race track.
19		Annually, from the purse account of organization licensees
20		conducting thoroughbred races at race tracks in Cook County,
21		$100,000 shall be paid for division and equal distribution to
22		the animal sciences department of each Illinois public
23		university system engaged in equine research and education on
24		or before the effective date of this amendatory Act of the 98th
25		General Assembly for equine research and education.
26		(d) Annually, from the purse account of an organization

SB1739 Engrossed - 330 - LRB098 10559 AMC 40804 b
1		licensee racing standardbred horses, an amount equal to 15% of
2		the electronic gaming receipts placed into that purse account
3		shall be paid to the Illinois Colt Stakes Purse Distribution
4		Fund. Moneys deposited into the Illinois Colt Stakes Purse
5		Distribution Fund shall be used for standardbred racing as
6		authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
7		subsection (g) of Section 31 of this Act and for bonus awards
8		as authorized under paragraph 6 of subsection (j) of Section 31
9		of this Act.
10		(e) The Illinois Gaming Board shall submit a report to the
11		General Assembly on or before December 31, 2014 that examines
12		the feasibility of conducting electronic gaming at the Illinois
13		State Fairgrounds in Sangamon County. At a minimum, this report
14		shall analyze the projected revenues that will be generated,
15		the potential for cannibalization of existing riverboats,
16		casinos, or other electronic gaming facilities, and the
17		potential detriment to the surrounding area and its population.
18		The report shall include the Illinois Gaming Board's findings
19		together with appropriate recommendations for legislative
20		action.
21		Section 90-40. The Riverboat Gambling Act is amended by
22		changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
23		11.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
24		and 24 and by adding Sections 5.3, 7.6, 7.7, 7.8, 7.9, 7.10,
25		7.11, 7.12, and 18.2 as follows:

SB1739 Engrossed - 331 - LRB098 10559 AMC 40804 b
1		(230 ILCS 10/1) (from Ch. 120, par. 2401)
2		Sec. 1. Short title. This Act shall be known and may be
3		cited as the Illinois Riverboat Gambling Act.
4		(Source: P.A. 86-1029.)
5		(230 ILCS 10/2) (from Ch. 120, par. 2402)
6		Sec. 2. Legislative Intent.
7		(a) This Act is intended to benefit the people of the State
8		of Illinois by assisting economic development, and promoting
9		Illinois tourism, and by increasing the amount of revenues
10		available to the State to assist and support education, and to
11		defray State expenses, including unpaid bills.
12		(b) While authorization of riverboat and casino gambling
13		will enhance investment, beautification, development and
14		tourism in Illinois, it is recognized that it will do so
15		successfully only if public confidence and trust in the
16		credibility and integrity of the gambling operations and the
17		regulatory process is maintained. Therefore, regulatory
18		provisions of this Act are designed to strictly regulate the
19		facilities, persons, associations and practices related to
20		gambling operations pursuant to the police powers of the State,
21		including comprehensive law enforcement supervision.
22		(c) The Illinois Gaming Board established under this Act
23		should, as soon as possible, inform each applicant for an
24		owners license of the Board's intent to grant or deny a

SB1739 Engrossed - 332 - LRB098 10559 AMC 40804 b
1		license.
2		(Source: P.A. 93-28, eff. 6-20-03.)
3		(230 ILCS 10/3) (from Ch. 120, par. 2403)
4		Sec. 3. Riverboat Gambling Authorized.
5		(a) Riverboat and casino gambling operations and
6		electronic gaming operations and the system of wagering
7		incorporated therein, as defined in this Act, are hereby
8		authorized to the extent that they are carried out in
9		accordance with the provisions of this Act.
10		(b) This Act does not apply to the pari-mutuel system of
11		wagering used or intended to be used in connection with the
12		horse-race meetings as authorized under the Illinois Horse
13		Racing Act of 1975, lottery games authorized under the Illinois
14		Lottery Law, bingo authorized under the Bingo License and Tax
15		Act, charitable games authorized under the Charitable Games Act
16		or pull tabs and jar games conducted under the Illinois Pull
17		Tabs and Jar Games Act. This Act applies to electronic gaming
18		authorized under the Illinois Horse Racing Act of 1975 to the
19		extent provided in that Act and in this Act.
20		(c) Riverboat gambling conducted pursuant to this Act may
21		be authorized upon any water within the State of Illinois or
22		any water other than Lake Michigan which constitutes a boundary
23		of the State of Illinois. Notwithstanding any provision in this
24		subsection (c) to the contrary, a licensee that receives its
25		license pursuant to subsection (e-5) of Section 7 may conduct

SB1739 Engrossed - 333 - LRB098 10559 AMC 40804 b
1		riverboat gambling on Lake Michigan from a home dock located on
2		Lake Michigan subject to any limitations contained in Section
3		7. Notwithstanding any provision in this subsection (c) to the
4		contrary, a licensee may conduct gambling at its home dock
5		facility as provided in Sections 7 and 11. A licensee may
6		conduct riverboat gambling authorized under this Act
7		regardless of whether it conducts excursion cruises. A licensee
8		may permit the continuous ingress and egress of passengers for
9		the purpose of gambling.
10		(d) Gambling that is conducted in accordance with this Act
11		using slot machines and video games of chance and other
12		electronic gambling games as defined in both the Illinois
13		Gambling Act and the Illinois Horse Racing Act of 1975 is
14		authorized.
15		(Source: P.A. 91-40, eff. 6-25-99.)
16		(230 ILCS 10/4) (from Ch. 120, par. 2404)
17		Sec. 4. Definitions. As used in this Act:
18		(a) "Board" means the Illinois Gaming Board.
19		(b) "Occupational license" means a license issued by the
20		Board to a person or entity to perform an occupation which the
21		Board has identified as requiring a license to engage in
22		riverboat gambling, casino gambling, or electronic gaming in
23		Illinois.
24		(c) "Gambling game" includes, but is not limited to,
25		baccarat, twenty-one, poker, craps, slot machine, video game of

SB1739 Engrossed - 334 - LRB098 10559 AMC 40804 b
1		chance, roulette wheel, klondike table, punchboard, faro
2		layout, keno layout, numbers ticket, push card, jar ticket, or
3		pull tab which is authorized by the Board as a wagering device
4		under this Act.
5		(d) "Riverboat" means a self-propelled excursion boat, a
6		permanently moored barge, or permanently moored barges that are
7		permanently fixed together to operate as one vessel, on which
8		lawful gambling is authorized and licensed as provided in this
9		Act.
10		"Slot machine" means any mechanical, electrical, or other
11		device, contrivance, or machine that is authorized by the Board
12		as a wagering device under this Act which, upon insertion of a
13		coin, currency, token, or similar object therein, or upon
14		payment of any consideration whatsoever, is available to play
15		or operate, the play or operation of which may deliver or
16		entitle the person playing or operating the machine to receive
17		cash, premiums, merchandise, tokens, or anything of value
18		whatsoever, whether the payoff is made automatically from the
19		machine or in any other manner whatsoever. A slot machine:
20		(1) may utilize spinning reels or video displays or
21		both;
22		(2) may or may not dispense coins, tickets, or tokens
23		to winning patrons;
24		(3) may use an electronic credit system for receiving
25		wagers and making payouts; and
26		(4) may simulate a table game.

SB1739 Engrossed - 335 - LRB098 10559 AMC 40804 b
1		"Slot machine" does not include table games authorized by
2		the Board as a wagering device under this Act.
3		(e) "Managers license" means a license issued by the Board
4		to a person or entity to manage gambling operations conducted
5		by the State pursuant to Section 7.3.
6		(f) "Dock" means the location where a riverboat moors for
7		the purpose of embarking passengers for and disembarking
8		passengers from the riverboat.
9		(g) "Gross receipts" means the total amount of money
10		exchanged for the purchase of chips, tokens, or electronic
11		cards by riverboat patrons.
12		(h) "Adjusted gross receipts" means the gross receipts less
13		winnings paid to wagerers.
14		(i) "Cheat" means to alter the selection of criteria which
15		determine the result of a gambling game or the amount or
16		frequency of payment in a gambling game.
17		(j) (Blank).
18		(k) "Gambling operation" means the conduct of authorized
19		gambling games authorized under this Act upon a riverboat or in
20		a casino or authorized under this Act and the Illinois Horse
21		Racing Act of 1975 at an electronic gaming facility.
22		(l) "License bid" means the lump sum amount of money that
23		an applicant bids and agrees to pay the State in return for an
24		owners license that is issued or re-issued on or after July 1,
25		2003.
26		"Table game" means a live gaming apparatus upon which

SB1739 Engrossed - 336 - LRB098 10559 AMC 40804 b
1		gaming is conducted or that determines an outcome that is the
2		object of a wager, including, but not limited to, baccarat,
3		twenty-one, blackjack, poker, craps, roulette wheel, klondike
4		table, punchboard, faro layout, keno layout, numbers ticket,
5		push card, jar ticket, pull tab, or other similar games that
6		are authorized by the Board as a wagering device under this
7		Act. "Table game" does not include slot machines or video games
8		of chance.
9		(m) The terms "minority person", "female", and "person with
10		a disability" shall have the same meaning as defined in Section
11		2 of the Business Enterprise for Minorities, Females, and
12		Persons with Disabilities Act.
13		"Authority" means the Chicago Casino Development
14		Authority.
15		"Casino" means a facility at which lawful gambling is
16		authorized as provided in this Act.
17		"Owners license" means a license to conduct riverboat or
18		casino gambling operations, but does not include an electronic
19		gaming license.
20		"Licensed owner" means a person who holds an owners
21		license.
22		"Electronic gaming" means slot machine gambling, video
23		game of chance gambling, or gambling with electronic gambling
24		games as defined in the Illinois Gambling Act or defined by the
25		Board that is conducted at a race track pursuant to an
26		electronic gaming license.

SB1739 Engrossed - 337 - LRB098 10559 AMC 40804 b
1		"Electronic gaming facility" means the area where the Board
2		has authorized electronic gaming at a race track of an
3		organization licensee under the Illinois Horse Racing Act of
4		1975 that holds an electronic gaming license.
5		"Electronic gaming license" means a license issued by the
6		Board under Section 7.6 of this Act authorizing electronic
7		gaming at an electronic gaming facility.
8		"Electronic gaming licensee" means an entity that holds an
9		electronic gaming license.
10		"Organization licensee" means an entity authorized by the
11		Illinois Racing Board to conduct pari-mutuel wagering in
12		accordance with the Illinois Horse Racing Act of 1975. With
13		respect only to electronic gaming, "organization licensee"
14		includes the authorization for electronic gaming created under
15		subsection (a) of Section 56 of the Illinois Horse Racing Act
16		of 1975.
17		"Casino operator license" means the license held by the
18		person or entity selected by the Authority to manage and
19		operate a riverboat or casino within the geographic area of the
20		authorized municipality pursuant to this Act and the Chicago
21		Casino Development Authority Act.
22		(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
23		(230 ILCS 10/5) (from Ch. 120, par. 2405)
24		Sec. 5. Gaming Board.
25		(a) (1) There is hereby established the Illinois Gaming

SB1739 Engrossed - 338 - LRB098 10559 AMC 40804 b
1		Board, which shall have the powers and duties specified in this
2		Act and in the Chicago Casino Development Authority Act, and
3		all other powers necessary and proper to fully and effectively
4		execute this Act for the purpose of administering, regulating,
5		and enforcing the system of riverboat and casino gambling and
6		electronic gaming established by this Act and by the Chicago
7		Casino Development Authority Act. Its jurisdiction shall
8		extend under this Act and the Chicago Casino Development
9		Authority Act to every person, association, corporation,
10		partnership and trust involved in riverboat and casino gambling
11		operations and electronic gaming in the State of Illinois.
12		(2) The Board shall consist of 5 members to be appointed by
13		the Governor with the advice and consent of the Senate, one of
14		whom shall be designated by the Governor to be chairperson
15		chairman. Each member shall have a reasonable knowledge of the
16		practice, procedure and principles of gambling operations.
17		Each member shall either be a resident of Illinois or shall
18		certify that he or she will become a resident of Illinois
19		before taking office.
20		On and after the effective date of this amendatory Act of
21		the 98th General Assembly, new appointees to the Board must
22		include the following:
23		(A) One member who has received, at a minimum, a
24		bachelor's degree from an accredited school and at least 10
25		years of verifiable training and experience in the fields
26		of investigation and law enforcement.

SB1739 Engrossed - 339 - LRB098 10559 AMC 40804 b
1		(B) One member who is a certified public accountant
2		with experience in auditing and with knowledge of complex
3		corporate structures and transactions.
4		(C) One member who has 5 years' experience as a
5		principal, senior officer, or director of a company or
6		business with either material responsibility for the daily
7		operations and management of the overall company or
8		business or material responsibility for the policy making
9		of the company or business.
10		(D) One member who is a lawyer licensed to practice law
11		in Illinois.
12		Notwithstanding any provision of this subsection (a), the
13		requirements of subparagraphs (A) through (D) of this paragraph
14		(2) shall not apply to any person reappointed pursuant to
15		paragraph (3).
16		No more than 3 members of the Board may be from the same
17		political party. The Board should reflect the ethnic, cultural,
18		and geographic diversity of the State. No Board member shall,
19		within a period of one year immediately preceding nomination,
20		have been employed or received compensation or fees for
21		services from a person or entity, or its parent or affiliate,
22		that has engaged in business with the Board, a licensee, or a
23		licensee under the Illinois Horse Racing Act of 1975. Board
24		members must publicly disclose all prior affiliations with
25		gaming interests, including any compensation, fees, bonuses,
26		salaries, and other reimbursement received from a person or

SB1739 Engrossed - 340 - LRB098 10559 AMC 40804 b
1		entity, or its parent or affiliate, that has engaged in
2		business with the Board, a licensee, or a licensee under the
3		Illinois Horse Racing Act of 1975. This disclosure must be made
4		within 30 days after nomination but prior to confirmation by
5		the Senate and must be made available to the members of the
6		Senate. At least one member shall be experienced in law
7		enforcement and criminal investigation, at least one member
8		shall be a certified public accountant experienced in
9		accounting and auditing, and at least one member shall be a
10		lawyer licensed to practice law in Illinois.
11		(3) The terms of office of the Board members shall be 3
12		years, except that the terms of office of the initial Board
13		members appointed pursuant to this Act will commence from the
14		effective date of this Act and run as follows: one for a term
15		ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
16		a term ending July 1, 1993. Upon the expiration of the
17		foregoing terms, the successors of such members shall serve a
18		term for 3 years and until their successors are appointed and
19		qualified for like terms. Vacancies in the Board shall be
20		filled for the unexpired term in like manner as original
21		appointments. Each member of the Board shall be eligible for
22		reappointment at the discretion of the Governor with the advice
23		and consent of the Senate.
24		(4) Each member of the Board shall receive $300 for each
25		day the Board meets and for each day the member conducts any
26		hearing pursuant to this Act. Each member of the Board shall

SB1739 Engrossed - 341 - LRB098 10559 AMC 40804 b
1		also be reimbursed for all actual and necessary expenses and
2		disbursements incurred in the execution of official duties.
3		(5) No person shall be appointed a member of the Board or
4		continue to be a member of the Board who is, or whose spouse,
5		child or parent is, a member of the board of directors of, or a
6		person financially interested in, any gambling operation
7		subject to the jurisdiction of this Board, or any race track,
8		race meeting, racing association or the operations thereof
9		subject to the jurisdiction of the Illinois Racing Board. No
10		Board member shall hold any other public office. No person
11		shall be a member of the Board who is not of good moral
12		character or who has been convicted of, or is under indictment
13		for, a felony under the laws of Illinois or any other state, or
14		the United States.
15		(5.5) No member of the Board shall engage in any political
16		activity. For the purposes of this Section, "political" means
17		any activity in support of or in connection with any campaign
18		for federal, State, or local elective office or any political
19		organization, but does not include activities (i) relating to
20		the support or opposition of any executive, legislative, or
21		administrative action (as those terms are defined in Section 2
22		of the Lobbyist Registration Act), (ii) relating to collective
23		bargaining, or (iii) that are otherwise in furtherance of the
24		person's official State duties or governmental and public
25		service functions.
26		(6) Any member of the Board may be removed by the Governor

SB1739 Engrossed - 342 - LRB098 10559 AMC 40804 b
1		for neglect of duty, misfeasance, malfeasance, or nonfeasance
2		in office or for engaging in any political activity.
3		(7) Before entering upon the discharge of the duties of his
4		office, each member of the Board shall take an oath that he
5		will faithfully execute the duties of his office according to
6		the laws of the State and the rules and regulations adopted
7		therewith and shall give bond to the State of Illinois,
8		approved by the Governor, in the sum of $25,000. Every such
9		bond, when duly executed and approved, shall be recorded in the
10		office of the Secretary of State. Whenever the Governor
11		determines that the bond of any member of the Board has become
12		or is likely to become invalid or insufficient, he shall
13		require such member forthwith to renew his bond, which is to be
14		approved by the Governor. Any member of the Board who fails to
15		take oath and give bond within 30 days from the date of his
16		appointment, or who fails to renew his bond within 30 days
17		after it is demanded by the Governor, shall be guilty of
18		neglect of duty and may be removed by the Governor. The cost of
19		any bond given by any member of the Board under this Section
20		shall be taken to be a part of the necessary expenses of the
21		Board.
22		(8) The Board shall employ such personnel as may be
23		necessary to carry out its functions and shall determine the
24		salaries of all personnel, except those personnel whose
25		salaries are determined under the terms of a collective
26		bargaining agreement. No person shall be employed to serve the

SB1739 Engrossed - 343 - LRB098 10559 AMC 40804 b
1		Board who is, or whose spouse, parent or child is, an official
2		of, or has a financial interest in or financial relation with,
3		any operator engaged in gambling operations within this State
4		or any organization engaged in conducting horse racing within
5		this State. For the one year immediately preceding employment,
6		an employee shall not have been employed or received
7		compensation or fees for services from a person or entity, or
8		its parent or affiliate, that has engaged in business with the
9		Board, a licensee, or a licensee under the Illinois Horse
10		Racing Act of 1975. Any employee violating these prohibitions
11		shall be subject to termination of employment. In addition, all
12		Board members and employees are subject to the restrictions set
13		forth in Section 5-45 of the State Officials and Employees
14		Ethics Act.
15		(9) An Administrator shall perform any and all duties that
16		the Board shall assign him. The salary of the Administrator
17		shall be determined by the Board and, in addition, he shall be
18		reimbursed for all actual and necessary expenses incurred by
19		him in discharge of his official duties. The Administrator
20		shall keep records of all proceedings of the Board and shall
21		preserve all records, books, documents and other papers
22		belonging to the Board or entrusted to its care. The
23		Administrator shall devote his full time to the duties of the
24		office and shall not hold any other office or employment.
25		(b) The Board shall have general responsibility for the
26		implementation of this Act. Its duties include, without

SB1739 Engrossed - 344 - LRB098 10559 AMC 40804 b
1		limitation, the following:
2		(1) To decide promptly and in reasonable order all
3		license applications. Any party aggrieved by an action of
4		the Board denying, suspending, revoking, restricting or
5		refusing to renew a license may request a hearing before
6		the Board. A request for a hearing must be made to the
7		Board in writing within 5 days after service of notice of
8		the action of the Board. Notice of the action of the Board
9		shall be served either by personal delivery or by certified
10		mail, postage prepaid, to the aggrieved party. Notice
11		served by certified mail shall be deemed complete on the
12		business day following the date of such mailing. The Board
13		shall conduct all requested hearings promptly and in
14		reasonable order;
15		(2) To conduct all hearings pertaining to civil
16		violations of this Act or rules and regulations promulgated
17		hereunder;
18		(3) To promulgate such rules and regulations as in its
19		judgment may be necessary to protect or enhance the
20		credibility and integrity of gambling operations
21		authorized by this Act and the regulatory process
22		hereunder;
23		(4) To provide for the establishment and collection of
24		all license and registration fees and taxes imposed by this
25		Act and the rules and regulations issued pursuant hereto.
26		All such fees and taxes shall be deposited into the State

SB1739 Engrossed - 345 - LRB098 10559 AMC 40804 b
1		Gaming Fund;
2		(5) To provide for the levy and collection of penalties
3		and fines for the violation of provisions of this Act and
4		the rules and regulations promulgated hereunder. All such
5		fines and penalties shall be deposited into the Education
6		Assistance Fund, created by Public Act 86-0018, of the
7		State of Illinois;
8		(6) To be present through its inspectors and agents any
9		time gambling operations are conducted on any riverboat, in
10		any casino, or at any electronic gaming facility for the
11		purpose of certifying the revenue thereof, receiving
12		complaints from the public, and conducting such other
13		investigations into the conduct of the gambling games and
14		the maintenance of the equipment as from time to time the
15		Board may deem necessary and proper;
16		(7) To review and rule upon any complaint by a licensee
17		regarding any investigative procedures of the State which
18		are unnecessarily disruptive of gambling operations. The
19		need to inspect and investigate shall be presumed at all
20		times. The disruption of a licensee's operations shall be
21		proved by clear and convincing evidence, and establish
22		that: (A) the procedures had no reasonable law enforcement
23		purposes, and (B) the procedures were so disruptive as to
24		unreasonably inhibit gambling operations;
25		(8) To hold at least one meeting each quarter of the
26		fiscal year. In addition, special meetings may be called by

SB1739 Engrossed - 346 - LRB098 10559 AMC 40804 b
1		the Chairman or any 2 Board members upon 72 hours written
2		notice to each member. All Board meetings shall be subject
3		to the Open Meetings Act. Three members of the Board shall
4		constitute a quorum, and 3 votes shall be required for any
5		final determination by the Board. The Board shall keep a
6		complete and accurate record of all its meetings. A
7		majority of the members of the Board shall constitute a
8		quorum for the transaction of any business, for the
9		performance of any duty, or for the exercise of any power
10		which this Act requires the Board members to transact,
11		perform or exercise en banc, except that, upon order of the
12		Board, one of the Board members or an administrative law
13		judge designated by the Board may conduct any hearing
14		provided for under this Act or by Board rule and may
15		recommend findings and decisions to the Board. The Board
16		member or administrative law judge conducting such hearing
17		shall have all powers and rights granted to the Board in
18		this Act. The record made at the time of the hearing shall
19		be reviewed by the Board, or a majority thereof, and the
20		findings and decision of the majority of the Board shall
21		constitute the order of the Board in such case;
22		(9) To maintain records which are separate and distinct
23		from the records of any other State board or commission.
24		Such records shall be available for public inspection and
25		shall accurately reflect all Board proceedings;
26		(10) To file a written annual report with the Governor

SB1739 Engrossed - 347 - LRB098 10559 AMC 40804 b
1		on or before March 1 each year and such additional reports
2		as the Governor may request. The annual report shall
3		include a statement of receipts and disbursements by the
4		Board, actions taken by the Board, and any additional
5		information and recommendations which the Board may deem
6		valuable or which the Governor may request;
7		(11) (Blank);
8		(12) (Blank);
9		(13) To assume responsibility for administration and
10		enforcement of the Video Gaming Act; and
11		(13.1) To assume responsibility for the administration
12		and enforcement of operations at electronic gaming
13		facilities pursuant to this Act and the Illinois Horse
14		Racing Act of 1975;
15		(13.2) To assume responsibility for the administration
16		and enforcement of gambling operations at the Chicago
17		Casino Development Authority's casino pursuant to this Act
18		and the Chicago Casino Development Authority Act; and
19		(14) To adopt, by rule, a code of conduct governing
20		Board members and employees that ensure, to the maximum
21		extent possible, that persons subject to this Code avoid
22		situations, relationships, or associations that may
23		represent or lead to a conflict of interest.
24		Internal controls and changes submitted by licensees must
25		be reviewed and either approved or denied with cause within 90
26		days after receipt of submission is deemed final by the

SB1739 Engrossed - 348 - LRB098 10559 AMC 40804 b
1		Illinois Gaming Board. In the event an internal control
2		submission or change does not meet the standards set by the
3		Board, staff of the Board must provide technical assistance to
4		the licensee to rectify such deficiencies within 90 days after
5		the initial submission and the revised submission must be
6		reviewed and approved or denied with cause within 90 days after
7		the date the revised submission is deemed final by the Board.
8		For the purposes of this paragraph, "with cause" means that the
9		approval of the submission would jeopardize the integrity of
10		gaming. In the event the Board staff has not acted within the
11		timeframe, the submission shall be deemed approved.
12		(c) The Board shall have jurisdiction over and shall
13		supervise all gambling operations governed by this Act and the
14		Chicago Casino Development Authority Act. The Board shall have
15		all powers necessary and proper to fully and effectively
16		execute the provisions of this Act and the Chicago Casino
17		Development Authority Act, including, but not limited to, the
18		following:
19		(1) To investigate applicants and determine the
20		eligibility of applicants for licenses and to select among
21		competing applicants the applicants which best serve the
22		interests of the citizens of Illinois.
23		(2) To have jurisdiction and supervision over all
24		riverboat gambling operations authorized under this Act
25		and the Chicago Casino Development Authority Act in this
26		State and all persons in places on riverboats where

SB1739 Engrossed - 349 - LRB098 10559 AMC 40804 b
1		gambling operations are conducted.
2		(3) To promulgate rules and regulations for the purpose
3		of administering the provisions of this Act and the Chicago
4		Casino Development Authority Act and to prescribe rules,
5		regulations and conditions under which all riverboat
6		gambling operations subject to this Act and the Chicago
7		Casino Development Authority Act in the State shall be
8		conducted. Such rules and regulations are to provide for
9		the prevention of practices detrimental to the public
10		interest and for the best interests of riverboat gambling,
11		including rules and regulations regarding the inspection
12		of electronic gaming facilities, casinos, and such
13		riverboats, and the review of any permits or licenses
14		necessary to operate a riverboat, casino, or electronic
15		gaming facilities under any laws or regulations applicable
16		to riverboats, casinos, or electronic gaming facilities
17		and to impose penalties for violations thereof.
18		(4) To enter the office, riverboats, casinos,
19		electronic gaming facilities, and other facilities, or
20		other places of business of a licensee, where evidence of
21		the compliance or noncompliance with the provisions of this
22		Act and the Chicago Casino Development Authority Act is
23		likely to be found.
24		(5) To investigate alleged violations of this Act, the
25		Chicago Casino Development Authority Act, or the rules of
26		the Board and to take appropriate disciplinary action

SB1739 Engrossed - 350 - LRB098 10559 AMC 40804 b
1		against a licensee or a holder of an occupational license
2		for a violation, or institute appropriate legal action for
3		enforcement, or both.
4		(6) To adopt standards for the licensing of all persons
5		and entities under this Act and the Chicago Casino
6		Development Authority Act, as well as for electronic or
7		mechanical gambling games, and to establish fees for such
8		licenses.
9		(7) To adopt appropriate standards for all electronic
10		gaming facilities, riverboats, casinos, and other
11		facilities authorized under this Act and the Chicago Casino
12		Development Authority Act.
13		(8) To require that the records, including financial or
14		other statements of any licensee under this Act and the
15		Chicago Casino Development Authority Act, shall be kept in
16		such manner as prescribed by the Board and that any such
17		licensee involved in the ownership or management of
18		gambling operations submit to the Board an annual balance
19		sheet and profit and loss statement, list of the
20		stockholders or other persons having a 1% or greater
21		beneficial interest in the gambling activities of each
22		licensee, and any other information the Board deems
23		necessary in order to effectively administer this Act and
24		the Chicago Casino Development Authority Act and all rules,
25		regulations, orders and final decisions promulgated under
26		this Act and the Chicago Casino Development Authority Act.

SB1739 Engrossed - 351 - LRB098 10559 AMC 40804 b
1		(9) To conduct hearings, issue subpoenas for the
2		attendance of witnesses and subpoenas duces tecum for the
3		production of books, records and other pertinent documents
4		in accordance with the Illinois Administrative Procedure
5		Act, and to administer oaths and affirmations to the
6		witnesses, when, in the judgment of the Board, it is
7		necessary to administer or enforce this Act, the Chicago
8		Casino Development Authority Act, or the Board rules.
9		(10) To prescribe a form to be used by any licensee
10		involved in the ownership or management of gambling
11		operations as an application for employment for their
12		employees.
13		(11) To revoke or suspend licenses, other than the
14		license issued to the Chicago Casino Development
15		Authority, as the Board may see fit and in compliance with
16		applicable laws of the State regarding administrative
17		procedures, and to review applications for the renewal of
18		licenses. The Board may suspend an owners license (other
19		than the license issued to the Chicago Casino Development
20		Authority), electronic gaming license, or casino operator
21		license, without notice or hearing upon a determination
22		that the safety or health of patrons or employees is
23		jeopardized by continuing a gambling operation conducted
24		under that license riverboat's operation. The suspension
25		may remain in effect until the Board determines that the
26		cause for suspension has been abated. The Board may revoke

SB1739 Engrossed - 352 - LRB098 10559 AMC 40804 b
1		an the owners license (other than the license issued to the
2		Chicago Casino Development Authority), electronic gaming
3		license, or casino operator license upon a determination
4		that the licensee owner has not made satisfactory progress
5		toward abating the hazard.
6		(12) To eject or exclude or authorize the ejection or
7		exclusion of, any person from riverboat gambling
8		facilities where that such person is in violation of this
9		Act or the Chicago Casino Development Authority Act, rules
10		and regulations thereunder, or final orders of the Board,
11		or where such person's conduct or reputation is such that
12		his or her presence within the riverboat gambling
13		facilities may, in the opinion of the Board, call into
14		question the honesty and integrity of the gambling
15		operations or interfere with the orderly conduct thereof;
16		provided that the propriety of such ejection or exclusion
17		is subject to subsequent hearing by the Board.
18		(13) To require all licensees of gambling operations to
19		utilize a cashless wagering system whereby all players'
20		money is converted to tokens, electronic cards, or chips
21		which shall be used only for wagering in the gambling
22		establishment.
23		(14) (Blank).
24		(15) To suspend, revoke or restrict licenses, other
25		than the license issued to the Chicago Casino Development
26		Authority, to require the removal of a licensee or an

SB1739 Engrossed - 353 - LRB098 10559 AMC 40804 b
1		employee of a licensee for a violation of this Act, the
2		Chicago Casino Development Authority Act, or a Board rule
3		or for engaging in a fraudulent practice, and to impose
4		civil penalties of up to $5,000 against individuals and up
5		to $10,000 or an amount equal to the daily gross receipts,
6		whichever is larger, against licensees for each violation
7		of any provision of the Act, the Chicago Casino Development
8		Authority Act, any rules adopted by the Board, any order of
9		the Board or any other action which, in the Board's
10		discretion, is a detriment or impediment to riverboat
11		gambling operations.
12		(16) To hire employees to gather information, conduct
13		investigations and carry out any other tasks contemplated
14		under this Act or the Chicago Casino Development Authority
15		Act.
16		(17) To establish minimum levels of insurance to be
17		maintained by licensees.
18		(18) To authorize a licensee to sell or serve alcoholic
19		liquors, wine or beer as defined in the Liquor Control Act
20		of 1934 on board a riverboat or in a casino and to have
21		exclusive authority to establish the hours for sale and
22		consumption of alcoholic liquor on board a riverboat or in
23		a casino, notwithstanding any provision of the Liquor
24		Control Act of 1934 or any local ordinance, and regardless
25		of whether the riverboat makes excursions. The
26		establishment of the hours for sale and consumption of

SB1739 Engrossed - 354 - LRB098 10559 AMC 40804 b
1		alcoholic liquor on board a riverboat or in a casino is an
2		exclusive power and function of the State. A home rule unit
3		may not establish the hours for sale and consumption of
4		alcoholic liquor on board a riverboat or in a casino. This
5		subdivision (18) amendatory Act of 1991 is a denial and
6		limitation of home rule powers and functions under
7		subsection (h) of Section 6 of Article VII of the Illinois
8		Constitution.
9		(19) After consultation with the U.S. Army Corps of
10		Engineers, to establish binding emergency orders upon the
11		concurrence of a majority of the members of the Board
12		regarding the navigability of water, relative to
13		excursions, in the event of extreme weather conditions,
14		acts of God or other extreme circumstances.
15		(20) To delegate the execution of any of its powers
16		under this Act or the Chicago Casino Development Authority
17		Act for the purpose of administering and enforcing this
18		Act, the Chicago Casino Development Authority Act, and the
19		its rules adopted by the Board under both Acts and
20		regulations hereunder.
21		(20.5) To approve any contract entered into on its
22		behalf.
23		(20.6) To appoint investigators to conduct
24		investigations, searches, seizures, arrests, and other
25		duties imposed under this Act, as deemed necessary by the
26		Board. These investigators have and may exercise all of the

SB1739 Engrossed - 355 - LRB098 10559 AMC 40804 b
1		rights and powers of peace officers, provided that these
2		powers shall be limited to offenses or violations occurring
3		or committed in a casino, in an electronic gaming facility,
4		or on a riverboat or dock, as defined in subsections (d)
5		and (f) of Section 4, or as otherwise provided by this Act,
6		the Chicago Casino Development Authority Act, or any other
7		law.
8		(20.7) To contract with the Department of State Police
9		for the use of trained and qualified State police officers
10		and with the Department of Revenue for the use of trained
11		and qualified Department of Revenue investigators to
12		conduct investigations, searches, seizures, arrests, and
13		other duties imposed under this Act or the Chicago Casino
14		Development Authority Act and to exercise all of the rights
15		and powers of peace officers, provided that the powers of
16		Department of Revenue investigators under this subdivision
17		(20.7) shall be limited to offenses or violations occurring
18		or committed in a casino, in an electronic gaming facility,
19		or on a riverboat or dock, as defined in subsections (d)
20		and (f) of Section 4, or as otherwise provided by this Act
21		or any other law. In the event the Department of State
22		Police or the Department of Revenue is unable to fill
23		contracted police or investigative positions, the Board
24		may appoint investigators to fill those positions pursuant
25		to subdivision (20.6).
26		(21) To adopt rules concerning the conduct of

SB1739 Engrossed - 356 - LRB098 10559 AMC 40804 b
1		electronic gaming.
2		(22) To have the same jurisdiction and supervision over
3		casinos and electronic gaming facilities as the Board has
4		over riverboats, including, but not limited to, the power
5		to (i) investigate, review, and approve contracts as that
6		power is applied to riverboats, (ii) adopt rules for
7		administering the provisions of this Act or the Chicago
8		Casino Development Authority Act, (iii) adopt standards
9		for the licensing of all persons involved with a casino or
10		electronic gaming facility, (iv) investigate alleged
11		violations of this Act by any person involved with a casino
12		or electronic gaming facility, and (v) require that
13		records, including financial or other statements of any
14		casino or electronic gaming facility, shall be kept in such
15		manner as prescribed by the Board.
16		(23) To supervise and regulate the Chicago Casino
17		Development Authority in accordance with the Chicago
18		Casino Development Authority Act and the provisions of this
19		Act.
20		(24) (21) To take any other action as may be reasonable
21		or appropriate to enforce this Act, the Chicago Casino
22		Development Authority Act, and the rules adopted by the
23		Board under both Acts and regulations hereunder.
24		All Board powers enumerated in this Section in relation to
25		licensees shall apply equally to the holder of any casino
26		management contract entered into pursuant to the Chicago Casino

SB1739 Engrossed - 357 - LRB098 10559 AMC 40804 b
1		Development Authority Act.
2		(d) The Board may seek and shall receive the cooperation of
3		the Department of State Police in conducting background
4		investigations of applicants and in fulfilling its
5		responsibilities under this Section. Costs incurred by the
6		Department of State Police as a result of such cooperation
7		shall be paid by the Board in conformance with the requirements
8		of Section 2605-400 of the Department of State Police Law (20
9		ILCS 2605/2605-400).
10		(e) The Board must authorize to each investigator and to
11		any other employee of the Board exercising the powers of a
12		peace officer a distinct badge that, on its face, (i) clearly
13		states that the badge is authorized by the Board and (ii)
14		contains a unique identifying number. No other badge shall be
15		authorized by the Board.
16		(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
17		96-1000, eff. 7-2-10; 96-1392, eff. 1-1-11.)
18		(230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
19		Sec. 5.1. Disclosure of records.
20		(a) Notwithstanding any applicable statutory provision to
21		the contrary, the Board shall, on written request from any
22		person, provide information furnished by an applicant or
23		licensee concerning the applicant or licensee, his products,
24		services or gambling enterprises and his business holdings, as
25		follows:

SB1739 Engrossed - 358 - LRB098 10559 AMC 40804 b
1		(1) The name, business address and business telephone
2		number of any applicant or licensee.
3		(2) An identification of any applicant or licensee
4		including, if an applicant or licensee is not an
5		individual, the names and addresses of all stockholders and
6		directors, if the entity is a corporation; the names and
7		addresses of all members, if the entity is a limited
8		liability company; the names and addresses of all partners,
9		both general and limited, if the entity is a partnership;
10		and the names and addresses of all beneficiaries, if the
11		entity is a trust the state of incorporation or
12		registration, the corporate officers, and the identity of
13		all shareholders or participants. If an applicant or
14		licensee has a pending registration statement filed with
15		the Securities and Exchange Commission, only the names of
16		those persons or entities holding interest of 5% or more
17		must be provided.
18		(3) An identification of any business, including, if
19		applicable, the state of incorporation or registration, in
20		which an applicant or licensee or an applicant's or
21		licensee's spouse or children has an equity interest of
22		more than 1%. If an applicant or licensee is a corporation,
23		partnership or other business entity, the applicant or
24		licensee shall identify any other corporation, partnership
25		or business entity in which it has an equity interest of 1%
26		or more, including, if applicable, the state of

SB1739 Engrossed - 359 - LRB098 10559 AMC 40804 b
1		incorporation or registration. This information need not
2		be provided by a corporation, partnership or other business
3		entity that has a pending registration statement filed with
4		the Securities and Exchange Commission.
5		(4) Whether an applicant or licensee has been indicted,
6		convicted, pleaded guilty or nolo contendere, or forfeited
7		bail concerning any criminal offense under the laws of any
8		jurisdiction, either felony or misdemeanor (except for
9		traffic violations), including the date, the name and
10		location of the court, arresting agency and prosecuting
11		agency, the case number, the offense, the disposition and
12		the location and length of incarceration.
13		(5) Whether an applicant or licensee has had any
14		license or certificate issued by a licensing authority in
15		Illinois or any other jurisdiction denied, restricted,
16		suspended, revoked or not renewed and a statement
17		describing the facts and circumstances concerning the
18		denial, restriction, suspension, revocation or
19		non-renewal, including the licensing authority, the date
20		each such action was taken, and the reason for each such
21		action.
22		(6) Whether an applicant or licensee has ever filed or
23		had filed against it a proceeding in bankruptcy or has ever
24		been involved in any formal process to adjust, defer,
25		suspend or otherwise work out the payment of any debt
26		including the date of filing, the name and location of the

SB1739 Engrossed - 360 - LRB098 10559 AMC 40804 b
1		court, the case and number of the disposition.
2		(7) Whether an applicant or licensee has filed, or been
3		served with a complaint or other notice filed with any
4		public body, regarding the delinquency in the payment of,
5		or a dispute over the filings concerning the payment of,
6		any tax required under federal, State or local law,
7		including the amount, type of tax, the taxing agency and
8		time periods involved.
9		(8) A statement listing the names and titles of all
10		public officials or officers of any unit of government, and
11		relatives of said public officials or officers who,
12		directly or indirectly, own any financial interest in, have
13		any beneficial interest in, are the creditors of or hold
14		any debt instrument issued by, or hold or have any interest
15		in any contractual or service relationship with, an
16		applicant or licensee.
17		(9) Whether an applicant or licensee has made, directly
18		or indirectly, any political contribution, or any loans,
19		donations or other payments, to any candidate or office
20		holder, within 5 years from the date of filing the
21		application, including the amount and the method of
22		payment.
23		(10) The name and business telephone number of the
24		counsel representing an applicant or licensee in matters
25		before the Board.
26		(11) A description of any proposed or approved

SB1739 Engrossed - 361 - LRB098 10559 AMC 40804 b
1		riverboat or casino gaming or electronic gaming operation,
2		including the type of boat, home dock or casino or
3		electronic gaming location, expected economic benefit to
4		the community, anticipated or actual number of employees,
5		any statement from an applicant or licensee regarding
6		compliance with federal and State affirmative action
7		guidelines, projected or actual admissions and projected
8		or actual adjusted gross gaming receipts.
9		(12) A description of the product or service to be
10		supplied by an applicant for a supplier's license.
11		(b) Notwithstanding any applicable statutory provision to
12		the contrary, the Board shall, on written request from any
13		person, also provide the following information:
14		(1) The amount of the wagering tax and admission tax
15		paid daily to the State of Illinois by the holder of an
16		owner's license.
17		(2) Whenever the Board finds an applicant for an
18		owner's license unsuitable for licensing, a copy of the
19		written letter outlining the reasons for the denial.
20		(3) Whenever the Board has refused to grant leave for
21		an applicant to withdraw his application, a copy of the
22		letter outlining the reasons for the refusal.
23		(c) Subject to the above provisions, the Board shall not
24		disclose any information which would be barred by:
25		(1) Section 7 of the Freedom of Information Act; or
26		(2) The statutes, rules, regulations or

SB1739 Engrossed - 362 - LRB098 10559 AMC 40804 b
1		intergovernmental agreements of any jurisdiction.
2		(d) The Board may assess fees for the copying of
3		information in accordance with Section 6 of the Freedom of
4		Information Act.
5		(Source: P.A. 96-1392, eff. 1-1-11.)
6		(230 ILCS 10/5.3 new)
7		Sec. 5.3. Ethical conduct.
8		(a) Officials and employees of the corporate authority of a
9		host community must carry out their duties and responsibilities
10		in such a manner as to promote and preserve public trust and
11		confidence in the integrity and conduct of gaming.
12		(b) Officials and employees of the corporate authority of a
13		host community shall not use or attempt to use his or her
14		official position to secure or attempt to secure any privilege,
15		advantage, favor, or influence for himself or herself or
16		others.
17		(c) Officials and employees of the corporate authority of a
18		host community may not have a financial interest, directly or
19		indirectly, in his or her own name or in the name of any other
20		person, partnership, association, trust, corporation, or other
21		entity in any contract or subcontract for the performance of
22		any work for a riverboat or casino that is located in the host
23		community. This prohibition shall extend to the holding or
24		acquisition of an interest in any entity identified by Board
25		action that, in the Board's judgment, could represent the

SB1739 Engrossed - 363 - LRB098 10559 AMC 40804 b
1		potential for or the appearance of a financial interest. The
2		holding or acquisition of an interest in such entities through
3		an indirect means, such as through a mutual fund, shall not be
4		prohibited, except that the Board may identify specific
5		investments or funds that, in its judgment, are so influenced
6		by gaming holdings as to represent the potential for or the
7		appearance of a conflict of interest.
8		(d) Officials and employees of the corporate authority of a
9		host community may not accept any gift, gratuity, service,
10		compensation, travel, lodging, or thing of value, with the
11		exception of unsolicited items of an incidental nature, from
12		any person, corporation, or entity doing business with the
13		riverboat or casino that is located in the host community.
14		(e) Officials and employees of the corporate authority of a
15		host community shall not, during the period that the person is
16		an official or employee of the corporate authority or for a
17		period of 2 years immediately after leaving such office,
18		knowingly accept employment or receive compensation or fees for
19		services from a person or entity, or its parent or affiliate,
20		that has engaged in business with the riverboat or casino that
21		is located in the host community that resulted in contracts
22		with an aggregate value of at least $25,000 or if that official
23		or employee has made a decision that directly applied to the
24		person or entity, or its parent or affiliate.
25		(f) A spouse, child, or parent of an official or employee
26		of the corporate authority of a host community may not have a

SB1739 Engrossed - 364 - LRB098 10559 AMC 40804 b
1		financial interest, directly or indirectly, in his or her own
2		name or in the name of any other person, partnership,
3		association, trust, corporation, or other entity in any
4		contract or subcontract for the performance of any work for a
5		riverboat or casino in the host community. This prohibition
6		shall extend to the holding or acquisition of an interest in
7		any entity identified by Board action that, in the judgment of
8		the Board, could represent the potential for or the appearance
9		of a conflict of interest. The holding or acquisition of an
10		interest in such entities through an indirect means, such as
11		through a mutual fund, shall not be prohibited, expect that the
12		Board may identify specific investments or funds that, in its
13		judgment, are so influenced by gaming holdings as to represent
14		the potential for or the appearance of a conflict of interest.
15		(g) A spouse, child, or parent of an official or employee
16		of the corporate authority of a host community may not accept
17		any gift, gratuity, service, compensation, travel, lodging, or
18		thing of value, with the exception of unsolicited items of an
19		incidental nature, from any person, corporation, or entity
20		doing business with the riverboat or casino that is located in
21		the host community.
22		(h) A spouse, child, or parent of an official or employee
23		of the corporate authority of a host community may not, during
24		the period that the person is an official of the corporate
25		authority or for a period of 2 years immediately after leaving
26		such office or employment, knowingly accept employment or

SB1739 Engrossed - 365 - LRB098 10559 AMC 40804 b
1		receive compensation or fees for services from a person or
2		entity, or its parent or affiliate, that has engaged in
3		business with the riverboat or casino that is located in the
4		host community that resulted in contracts with an aggregate
5		value of at least $25,000 or if that official or employee has
6		made a decision that directly applied to the person or entity,
7		or its parent or affiliate.
8		(i) Officials and employees of the corporate authority of a
9		host community shall not attempt, in any way, to influence any
10		person or entity doing business with the riverboat or casino
11		that is located in the host community or any officer, agent, or
12		employee thereof to hire or contract with any person or entity
13		for any compensated work.
14		(j) Any communication between an official of the corporate
15		authority of a host community and any applicant for an owners
16		license in the host community, or an officer, director, or
17		employee of a riverboat or casino in the host community,
18		concerning any matter relating in any way to gaming shall be
19		disclosed to the Board. Such disclosure shall be in writing by
20		the official within 30 days after the communication and shall
21		be filed with the Board. Disclosure must consist of the date of
22		the communication, the identity and job title of the person
23		with whom the communication was made, a brief summary of the
24		communication, the action requested or recommended, all
25		responses made, the identity and job title of the person making
26		the response, and any other pertinent information. Public

SB1739 Engrossed - 366 - LRB098 10559 AMC 40804 b
1		disclosure of the written summary provided to the Board and the
2		Gaming Board shall be subject to the exemptions provided under
3		the Freedom of Information Act.
4		This subsection (j) shall not apply to communications
5		regarding traffic, law enforcement, security, environmental
6		issues, city services, transportation, or other routine
7		matters concerning the ordinary operations of the riverboat or
8		casino. For purposes of this subsection (j), "ordinary
9		operations" means operations relating to the casino or
10		riverboat facility other than the conduct of gambling
11		activities, and "routine matters" includes the application
12		for, issuance of, renewal of, and other processes associated
13		with municipal permits and licenses.
14		(k) Any official or employee who violates any provision of
15		this Section is guilty of a Class 4 felony.
16		(l) For purposes of this Section, "host community" or "host
17		municipality" means a unit of local government that contains a
18		riverboat or casino within its borders, but does not include
19		the City of Chicago or the Chicago Casino Development
20		Authority.
21		(230 ILCS 10/6) (from Ch. 120, par. 2406)
22		Sec. 6. Application for Owners License.
23		(a) A qualified person may apply to the Board for an owners
24		license to conduct a riverboat gambling operation as provided
25		in this Act. The application shall be made on forms provided by

SB1739 Engrossed - 367 - LRB098 10559 AMC 40804 b
1		the Board and shall contain such information as the Board
2		prescribes, including but not limited to the identity of the
3		riverboat on which such gambling operation is to be conducted,
4		if applicable, and the exact location where such riverboat or
5		casino will be located docked, a certification that the
6		riverboat will be registered under this Act at all times during
7		which gambling operations are conducted on board, detailed
8		information regarding the ownership and management of the
9		applicant, and detailed personal information regarding the
10		applicant. Any application for an owners license to be
11		re-issued on or after June 1, 2003 shall also include the
12		applicant's license bid in a form prescribed by the Board.
13		Information provided on the application shall be used as a
14		basis for a thorough background investigation which the Board
15		shall conduct with respect to each applicant. An incomplete
16		application shall be cause for denial of a license by the
17		Board.
18		(a-5) In addition to any other information required under
19		this Section, each application for an owners license must
20		include the following information:
21		(1) The history and success of the applicant and each
22		person and entity disclosed under subsection (c) of this
23		Section in developing tourism facilities ancillary to
24		gaming, if applicable.
25		(2) The likelihood that granting a license to the
26		applicant will lead to the creation of quality, living wage

SB1739 Engrossed - 368 - LRB098 10559 AMC 40804 b
1		jobs and permanent, full-time jobs for residents of the
2		State and residents of the unit of local government that is
3		designated as the home dock of the proposed facility where
4		gambling is to be conducted by the applicant.
5		(3) The projected number of jobs that would be created
6		if the license is granted and the projected number of new
7		employees at the proposed facility where gambling is to be
8		conducted by the applicant.
9		(4) The record, if any, of the applicant and its
10		developer in meeting commitments to local agencies,
11		community-based organizations, and employees at other
12		locations where the applicant or its developer has
13		performed similar functions as they would perform if the
14		applicant were granted a license.
15		(5) Identification of adverse effects that might be
16		caused by the proposed facility where gambling is to be
17		conducted by the applicant, including the costs of meeting
18		increased demand for public health care, child care, public
19		transportation, affordable housing, and social services,
20		and a plan to mitigate those adverse effects.
21		(6) The record, if any, of the applicant and its
22		developer regarding compliance with:
23		(A) federal, state, and local discrimination, wage
24		and hour, disability, and occupational and
25		environmental health and safety laws; and
26		(B) state and local labor relations and employment

SB1739 Engrossed - 369 - LRB098 10559 AMC 40804 b
1		laws.
2		(7) The applicant's record, if any, in dealing with its
3		employees and their representatives at other locations.
4		(8) A plan concerning the utilization of
5		minority-owned and female-owned businesses and concerning
6		the hiring of minorities and females.
7		(9) Evidence the applicant used its best efforts to
8		reach a goal of 25% ownership representation by minority
9		persons and 5% ownership representation by females.
10		(b) Applicants shall submit with their application all
11		documents, resolutions, and letters of support from the
12		governing body that represents the municipality or county
13		wherein the licensee will be located dock.
14		(c) Each applicant shall disclose the identity of every
15		person or entity , association, trust or corporation having a
16		greater than 1% direct or indirect pecuniary interest in the
17		riverboat gambling operation with respect to which the license
18		is sought. If the disclosed entity is a trust, the application
19		shall disclose the names and addresses of all the
20		beneficiaries; if a corporation, the names and addresses of all
21		stockholders and directors; if a partnership, the names and
22		addresses of all partners, both general and limited.
23		(d) An application shall be filed and considered in
24		accordance with the rules of the Board. Each application shall
25		be accompanied by a non-refundable An application fee of
26		$100,000. In addition, a non-refundable fee of $50,000 shall be

SB1739 Engrossed - 370 - LRB098 10559 AMC 40804 b
1		paid at the time of filing to defray the costs associated with
2		the background investigation conducted by the Board. If the
3		costs of the investigation exceed $50,000, the applicant shall
4		pay the additional amount to the Board within 7 days after
5		requested by the Board. If the costs of the investigation are
6		less than $50,000, the applicant shall receive a refund of the
7		remaining amount. All information, records, interviews,
8		reports, statements, memoranda or other data supplied to or
9		used by the Board in the course of its review or investigation
10		of an application for a license or a renewal under this Act
11		shall be privileged, strictly confidential and shall be used
12		only for the purpose of evaluating an applicant for a license
13		or a renewal. Such information, records, interviews, reports,
14		statements, memoranda or other data shall not be admissible as
15		evidence, nor discoverable in any action of any kind in any
16		court or before any tribunal, board, agency or person, except
17		for any action deemed necessary by the Board. The application
18		fee shall be deposited into the Gaming Facilities Fee Revenue
19		Fund.
20		(e) The Board shall charge each applicant a fee set by the
21		Department of State Police to defray the costs associated with
22		the search and classification of fingerprints obtained by the
23		Board with respect to the applicant's application. These fees
24		shall be paid into the State Police Services Fund.
25		(f) The licensed owner shall be the person primarily
26		responsible for the boat or casino itself. Only one riverboat

SB1739 Engrossed - 371 - LRB098 10559 AMC 40804 b
1		gambling operation may be authorized by the Board on any
2		riverboat or in any casino. The applicant must identify the
3		each riverboat or premises it intends to use and certify that
4		the riverboat or premises: (1) has the authorized capacity
5		required in this Act; (2) is accessible to disabled persons;
6		and (3) is fully registered and licensed in accordance with any
7		applicable laws.
8		(g) A person who knowingly makes a false statement on an
9		application is guilty of a Class A misdemeanor.
10		(Source: P.A. 96-1392, eff. 1-1-11.)
11		(230 ILCS 10/7) (from Ch. 120, par. 2407)
12		Sec. 7. Owners Licenses.
13		(a) The Board shall issue owners licenses to persons or
14		entities , firms or corporations which apply for such licenses
15		upon payment to the Board of the non-refundable license fee as
16		provided in subsection (e) or (e-5) set by the Board, upon
17		payment of a $25,000 license fee for the first year of
18		operation and a $5,000 license fee for each succeeding year and
19		upon a determination by the Board that the applicant is
20		eligible for an owners license pursuant to this Act, the
21		Chicago Casino Development Authority Act, and the rules of the
22		Board. From the effective date of this amendatory Act of the
23		95th General Assembly until (i) 3 years after the effective
24		date of this amendatory Act of the 95th General Assembly, (ii)
25		the date any organization licensee begins to operate a slot

SB1739 Engrossed - 372 - LRB098 10559 AMC 40804 b
1		machine or video game of chance under the Illinois Horse Racing
2		Act of 1975 or this Act, (iii) the date that payments begin
3		under subsection (c-5) of Section 13 of the Act, or (iv) the
4		wagering tax imposed under Section 13 of this Act is increased
5		by law to reflect a tax rate that is at least as stringent or
6		more stringent than the tax rate contained in subsection (a-3)
7		of Section 13, or (v) when an owners licensee holding a license
8		issued pursuant to Section 7.1 of this Act begins conducting
9		gaming, whichever occurs first, as a condition of licensure and
10		as an alternative source of payment for those funds payable
11		under subsection (c-5) of Section 13 of this the Riverboat
12		Gambling Act, any owners licensee that holds or receives its
13		owners license on or after the effective date of this
14		amendatory Act of the 94th General Assembly, other than an
15		owners licensee operating a riverboat with adjusted gross
16		receipts in calendar year 2004 of less than $200,000,000, must
17		pay into the Horse Racing Equity Trust Fund, in addition to any
18		other payments required under this Act, an amount equal to 3%
19		of the adjusted gross receipts received by the owners licensee.
20		The payments required under this Section shall be made by the
21		owners licensee to the State Treasurer no later than 3:00
22		o'clock p.m. of the day after the day when the adjusted gross
23		receipts were received by the owners licensee. A person, firm
24		or entity corporation is ineligible to receive an owners
25		license if:
26		(1) the person has been convicted of a felony under the

SB1739 Engrossed - 373 - LRB098 10559 AMC 40804 b
1		laws of this State, any other state, or the United States;
2		(2) the person has been convicted of any violation of
3		Article 28 of the Criminal Code of 1961 or the Criminal
4		Code of 2012, or substantially similar laws of any other
5		jurisdiction;
6		(3) the person has submitted an application for a
7		license under this Act or the Chicago Casino Development
8		Authority Act which contains false information;
9		(4) the person is a member of the Board;
10		(5) a person defined in (1), (2), (3) or (4) is an
11		officer, director or managerial employee of the entity firm
12		or corporation;
13		(6) the entity firm or corporation employs a person
14		defined in (1), (2), (3) or (4) who participates in the
15		management or operation of gambling operations authorized
16		under this Act or the Chicago Casino Development Authority
17		Act;
18		(7) (blank); or
19		(8) a license of the person or entity , firm or
20		corporation issued under this Act or the Chicago Casino
21		Development Authority Act, or a license to own or operate
22		gambling facilities in any other jurisdiction, has been
23		revoked.
24		The Board is expressly prohibited from making changes to
25		the requirement that licensees make payment into the Horse
26		Racing Equity Trust Fund without the express authority of the

SB1739 Engrossed - 374 - LRB098 10559 AMC 40804 b
1		Illinois General Assembly and making any other rule to
2		implement or interpret this amendatory Act of the 95th General
3		Assembly. For the purposes of this paragraph, "rules" is given
4		the meaning given to that term in Section 1-70 of the Illinois
5		Administrative Procedure Act.
6		(a-1) Upon approval of the members of the Chicago Casino
7		Development Board, the Chicago Casino Development Authority's
8		executive director, and the Chicago casino operator licensee,
9		the Board shall issue an owners license to the Chicago Casino
10		Development Authority that authorizes the conduct of gambling
11		operations in a casino or in an airport located in the City of
12		Chicago.
13		(b) In determining whether to grant an owners license to an
14		applicant other than the Chicago Casino Development Authority,
15		the Board shall consider:
16		(1) the character, reputation, experience and
17		financial integrity of the applicants and of any other or
18		separate person that either:
19		(A) controls, directly or indirectly, such
20		applicant, or
21		(B) is controlled, directly or indirectly, by such
22		applicant or by a person which controls, directly or
23		indirectly, such applicant;
24		(2) the facilities or proposed facilities for the
25		conduct of riverboat gambling;
26		(3) the highest prospective total revenue to be derived

SB1739 Engrossed - 375 - LRB098 10559 AMC 40804 b
1		by the State from the conduct of riverboat gambling;
2		(4) the extent to which the ownership of the applicant
3		reflects the diversity of the State by including minority
4		persons, females, and persons with a disability and the
5		good faith affirmative action plan of each applicant to
6		recruit, train and upgrade minority persons, females, and
7		persons with a disability in all employment
8		classifications;
9		(5) the financial ability of the applicant to purchase
10		and maintain adequate liability and casualty insurance;
11		(6) whether the applicant has adequate capitalization
12		to provide and maintain, for the duration of a license, a
13		riverboat or casino;
14		(7) the extent to which the applicant exceeds or meets
15		other standards for the issuance of an owners license which
16		the Board may adopt by rule; and
17		(8) the The amount of the applicant's license bid; .
18		(9) the extent to which the applicant or the proposed
19		host municipality plans to enter into revenue sharing
20		agreements with communities other than the host
21		municipality; and
22		(10) the extent to which the ownership of an applicant
23		includes the most qualified number of minority persons,
24		females, and persons with a disability.
25		(c) Each owners license shall specify the place where the
26		casino riverboats shall operate or the riverboat shall operate

SB1739 Engrossed - 376 - LRB098 10559 AMC 40804 b
1		and dock.
2		(d) Each applicant shall submit with his application, on
3		forms provided by the Board, 2 sets of his fingerprints.
4		(e) In addition to any licenses authorized under subsection
5		(e-5) of this Section, the The Board may issue up to 10
6		licenses authorizing the holders of such licenses to own
7		riverboats. In the application for an owners license, the
8		applicant shall state the dock at which the riverboat is based
9		and the water on which the riverboat will be located. The Board
10		shall issue 5 licenses to become effective not earlier than
11		January 1, 1991. Three of such licenses shall authorize
12		riverboat gambling on the Mississippi River, or, with approval
13		by the municipality in which the riverboat was docked on August
14		7, 2003 and with Board approval, be authorized to relocate to a
15		new location, in a municipality that (1) borders on the
16		Mississippi River or is within 5 miles of the city limits of a
17		municipality that borders on the Mississippi River and (2), on
18		August 7, 2003, had a riverboat conducting riverboat gambling
19		operations pursuant to a license issued under this Act; one of
20		which shall authorize riverboat gambling from a home dock in
21		the city of East St. Louis. One other license shall authorize
22		riverboat gambling on the Illinois River in Tazewell County or,
23		with Board approval, shall authorize the riverboat to relocate
24		to a new location that is no more than 10 miles away from its
25		original location, in a municipality that borders on the
26		Illinois River or is within 5 miles of the city limits of a

SB1739 Engrossed - 377 - LRB098 10559 AMC 40804 b
1		municipality that borders on the Illinois River south of
2		Marshall County. The Board shall issue one additional license
3		to become effective not earlier than March 1, 1992, which shall
4		authorize riverboat gambling on the Des Plaines River in Will
5		County. The Board may issue 4 additional licenses to become
6		effective not earlier than March 1, 1992. In determining the
7		water upon which riverboats will operate, the Board shall
8		consider the economic benefit which riverboat gambling confers
9		on the State, and shall seek to assure that all regions of the
10		State share in the economic benefits of riverboat gambling.
11		In granting all licenses, the Board may give favorable
12		consideration to economically depressed areas of the State, to
13		applicants presenting plans which provide for significant
14		economic development over a large geographic area, and to
15		applicants who currently operate non-gambling riverboats in
16		Illinois. The Board shall review all applications for owners
17		licenses, and shall inform each applicant of the Board's
18		decision. The Board may grant an owners license to an applicant
19		that has not submitted the highest license bid, but if it does
20		not select the highest bidder, the Board shall issue a written
21		decision explaining why another applicant was selected and
22		identifying the factors set forth in this Section that favored
23		the winning bidder. The fee for issuance or renewal of a
24		license pursuant to this subsection (e) shall be $100,000.
25		(e-5) In addition to licenses authorized under subsection
26		(e) of this Section:

SB1739 Engrossed - 378 - LRB098 10559 AMC 40804 b
1		(1) the Board shall issue one owners license
2		authorizing the conduct of casino gambling in the City of
3		Chicago;
4		(2) the Board may issue one owners license authorizing
5		the conduct of riverboat gambling in the City of Danville;
6		(3) the Board may issue one owners license authorizing
7		the conduct of riverboat gambling located in one of the
8		following municipalities in Lake County: Park City, North
9		Chicago, or Waukegan;
10		(4) the Board may issue one owners license authorizing
11		the conduct of riverboat gambling in the City of Rockford;
12		and
13		(5) the Board may issue one owners license authorizing
14		the conduct of riverboat gambling in a municipality that is
15		located in one of the following townships of Cook County:
16		Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township.
17		Each application for a license pursuant to this subsection
18		(e-5) shall be submitted to the Board no later than 6 months
19		after the effective date of this amendatory Act of the 98th
20		General Assembly and shall include the non-refundable
21		application fee and the non-refundable background
22		investigation fee as provided in subsection (d) of Section 6 of
23		this Act. In the event that an applicant submits an application
24		for a license pursuant to this subsection (e-5) prior to the
25		effective date of this amendatory Act of the 98th General
26		Assembly, such applicant shall submit the non-refundable

SB1739 Engrossed - 379 - LRB098 10559 AMC 40804 b
1		application fee and background investigation fee as provided in
2		subsection (d) of Section 6 of this Act no later than 6 months
3		after the effective date of this amendatory Act of the 98th
4		General Assembly.
5		The Board shall consider issuing a license pursuant to
6		paragraphs (2) through (5) of this subsection only after the
7		corporate authority of the municipality in which the riverboat
8		shall be located has certified to the Board the following:
9		(i) that the applicant has negotiated with the
10		corporate authority in good faith;
11		(ii) that the applicant and the corporate authority
12		have mutually agreed on the permanent location of the
13		riverboat;
14		(iii) that the applicant and the corporate authority
15		have mutually agreed on the temporary location of the
16		riverboat;
17		(iv) that the applicant and the corporate authority
18		have mutually agreed on the percentage of revenues that
19		will be shared with the municipality, if any; and
20		(v) that the applicant and the corporate authority have
21		mutually agreed on any zoning, licensing, public health, or
22		other issues that are within the jurisdiction of the
23		municipality.
24		At least 7 days before the corporate authority of a
25		municipality submits a certification to the Board concerning
26		items (i) through (v) of this subsection, it shall hold a

SB1739 Engrossed - 380 - LRB098 10559 AMC 40804 b
1		public hearing to discuss items (i) through (v), as well as any
2		other details concerning the proposed riverboat in the
3		municipality. The corporate authority must subsequently
4		memorialize the details concerning the proposed riverboat or
5		casino in a resolution that must be adopted by a majority of
6		the corporate authority before any certification is sent to the
7		Board. The Board shall not alter, amend, change, or otherwise
8		interfere with any agreement between the applicant and the
9		corporate authority of the municipality regarding the location
10		of any temporary or permanent facility.
11		(e-10) The licenses authorized under subsection (e-5) of
12		this Section shall be issued within 12 months after the date
13		the license application is submitted. If the Board does not
14		issue the licenses within that time period, then the Board
15		shall give a written explanation to the applicant as to why it
16		has not reached a determination and when it reasonably expects
17		to make a determination. The fee for the issuance or renewal of
18		a license issued pursuant to this subsection (e-10) shall be
19		$100,000. Additionally, a licensee located outside of Cook
20		County shall pay a minimum initial fee of $17,500 per gaming
21		position, and a licensee located in Cook County shall pay a
22		minimum initial fee of $30,000 per gaming position. The initial
23		fees payable under this subsection (e-10) shall be deposited
24		into the Gaming Facilities Fee Revenue Fund.
25		(e-15) Each licensee of a license authorized under
26		subsection (e-5) of this Section shall make a reconciliation

SB1739 Engrossed - 381 - LRB098 10559 AMC 40804 b
1		payment 3 years after the date the licensee begins operating in
2		an amount equal to 75% of the adjusted gross receipts for the
3		most lucrative 12-month period of operations, minus an amount
4		equal to the initial payment per gaming position paid by the
5		specific licensee. If this calculation results in a negative
6		amount, then the licensee is not entitled to any reimbursement
7		of fees previously paid. This reconciliation payment may be
8		made in installments over a period of no more than 2 years,
9		subject to Board approval. Any installment payments shall
10		include an annual market interest rate as determined by the
11		Board. All payments by licensees under this subsection (e-15)
12		shall be deposited into the Gaming Facilities Fee Revenue Fund.
13		(e-20) In addition to any other revocation powers granted
14		to the Board under this Act, the Board may revoke the owners
15		license of a licensee, other than the Chicago Casino
16		Development Authority, which fails to begin conducting
17		gambling within 15 months of receipt of the Board's approval of
18		the application if the Board determines that license revocation
19		is in the best interests of the State.
20		(f) The first 10 owners licenses issued under this Act
21		shall permit the holder to own up to 2 riverboats and equipment
22		thereon for a period of 3 years after the effective date of the
23		license. Holders of the first 10 owners licenses must pay the
24		annual license fee for each of the 3 years during which they
25		are authorized to own riverboats.
26		(g) Upon the termination, expiration, or revocation of each

SB1739 Engrossed - 382 - LRB098 10559 AMC 40804 b
1		of the first 10 licenses, which shall be issued for a 3 year
2		period, all licenses are renewable annually upon payment of the
3		fee and a determination by the Board that the licensee
4		continues to meet all of the requirements of this Act and the
5		Board's rules. However, for licenses renewed on or after May 1,
6		1998, including casino operator licenses, renewal shall be for
7		a period of 4 years, unless the Board sets a shorter period.
8		Notwithstanding any provision in this subsection (g) to the
9		contrary, any license that is awarded to the Chicago Casino
10		Development Authority shall not expire, but it shall be subject
11		to the provisions of this Act and the rules of the Board.
12		(h) An owners license, except for an owners license issued
13		under subsection (e-5) of this Section, shall entitle the
14		licensee to own up to 2 riverboats.
15		An owners licensee of a casino or riverboat that is located
16		in the City of Chicago pursuant to paragraph (1) of subsection
17		(e-5) of this Section shall limit the number of gaming
18		positions to 4,000 for such owner. All other owners licensees A
19		licensee shall limit the number of gaming positions gambling
20		participants to 1,600 1,200 for any such owners license, except
21		as further provided in subsection (h-10) of this Section. The
22		initial fee for each gaming position obtained on or after the
23		effective date of this amendatory Act of the 98th General
24		Assembly shall be a minimum of $17,500 for licensees not
25		located in Cook County and a minimum of $30,000 for licensees
26		located in Cook County, in addition to the reconciliation

SB1739 Engrossed - 383 - LRB098 10559 AMC 40804 b
1		payment, as set forth in subsections (e-15) or (h-5) of this
2		Section.
3		Each owners licensee shall reserve its gaming positions
4		within 90 days after issuance of its owners license. The Board
5		may grant an extension to this 90-day period, provided that the
6		owners licensee submits a written request and explanation as to
7		why it is unable to reserve its positions within the 90-day
8		period.
9		A licensee may operate both of its riverboats concurrently,
10		provided that the total number of gaming positions gambling
11		participants on both riverboats does not exceed the limit
12		established pursuant to this subsection and subsection (h-10)
13		of this Section 1,200. Riverboats licensed to operate on the
14		Mississippi River and the Illinois River south of Marshall
15		County shall have an authorized capacity of at least 500
16		persons. Any other riverboat licensed under this Act shall have
17		an authorized capacity of at least 400 persons.
18		(h-5) An owners licensee who conducted gambling operations
19		prior to January 1, 2012 and purchases positions pursuant to
20		subsection (h-10) of this Section on or after the effective
21		date of this amendatory Act of the 98th General Assembly must
22		pay a minimum initial fee of $17,500 per gaming position if the
23		licensee is located outside Cook County and a minimum initial
24		fee of $30,000 per gaming position if the licensee is located
25		in Cook County, as stated in subsection (h) of this Section.
26		These initial fees shall be deposited into the Gaming

SB1739 Engrossed - 384 - LRB098 10559 AMC 40804 b
1		Facilities Fee Revenue Fund. Additionally, that owners
2		licensee shall make a reconciliation payment 3 years after any
3		additional gaming positions obtained pursuant to subsection
4		(h-10) begin operating in an amount equal to 75% of the owners
5		licensee's average gross receipts for the most lucrative
6		12-month period of operations minus an amount equal to the
7		initial fee that the owners licensee paid per additional gaming
8		position. For purposes of this subsection (h-5), "average gross
9		receipts" means (i) the increase in adjusted gross receipts for
10		the most lucrative 12-month period of operations over the
11		adjusted gross receipts for 2013, multiplied by (ii) the
12		percentage derived by dividing the number of additional gaming
13		positions that an owners licensee had obtained pursuant to
14		subsection (h-10) by the total number of gaming positions
15		operated by the owners licensee. If this calculation results in
16		a negative amount, then the owners licensee is not entitled to
17		any reimbursement of fees previously paid. This reconciliation
18		payment may be made in installments over a period of no more
19		than 2 years, subject to Board approval. Any installment
20		payments shall include an annual market interest rate as
21		determined by the Board. These reconciliation payments shall be
22		deposited into the Gaming Facilities Fee Revenue Fund.
23		(h-10) For owners licensees authorized under paragraphs
24		(2) through (5) of subsection (e-5) of this Section, the
25		application for such new owners licenses shall ask the
26		applicants to stipulate in their applications the number of

SB1739 Engrossed - 385 - LRB098 10559 AMC 40804 b
1		gaming positions each applicant would like to reserve, up to
2		1,600 gaming positions. Once the last winning applicant for
3		each of these owners licenses has been selected by the Board,
4		the Board shall publish the number of gaming positions reserved
5		and unreserved by each winning applicant, shall accept requests
6		for additional gaming positions from any winning applicants or
7		owners licensee who initially reserved 1,600 gaming positions,
8		and shall allocate expeditiously the unreserved gaming
9		positions to such requesting winning applicants or owners
10		licensees in a manner to maximize revenue to the State;
11		provided, however, that no owners licensee (other than the
12		Chicago Casino Development Authority) shall obtain more than
13		2,000 positions total. The Board may allocate any such unused
14		gaming positions through a competitive bidding process
15		pursuant to Section 7.5 of this Act.
16		In the event that not all of the unreserved gaming
17		positions described in the first and second paragraphs of this
18		subsection (h-10) were requested by owners licensees and
19		applicants, then until there are no longer unreserved gaming
20		positions, the Board periodically shall govern a process to
21		allocate the unreserved gaming positions in a manner to
22		maximize revenue to the State.
23		Unreserved gaming positions retained from and allocated to
24		owners licensees by the Board pursuant to this subsection
25		(h-10) shall not be allocated to electronic gaming licensees
26		pursuant to subsection (e) of Section 7.6 of this Act.

SB1739 Engrossed - 386 - LRB098 10559 AMC 40804 b
1		(i) A licensed owner is authorized to apply to the Board
2		for and, if approved therefor, to receive all licenses from the
3		Board necessary for the operation of a riverboat or a casino,
4		including a liquor license, a license to prepare and serve food
5		for human consumption, and other necessary licenses. All use,
6		occupation and excise taxes which apply to the sale of food and
7		beverages in this State and all taxes imposed on the sale or
8		use of tangible personal property apply to such sales aboard
9		the riverboat or in the casino.
10		(j) The Board may issue or re-issue a license authorizing a
11		riverboat to dock in a municipality or approve a relocation
12		under Section 11.2 only if, prior to the issuance or
13		re-issuance of the license or approval, the governing body of
14		the municipality in which the riverboat will dock has by a
15		majority vote approved the docking of riverboats in the
16		municipality. The Board may issue or re-issue a license
17		authorizing a riverboat to dock in areas of a county outside
18		any municipality or approve a relocation under Section 11.2
19		only if, prior to the issuance or re-issuance of the license or
20		approval, the governing body of the county has by a majority
21		vote approved of the docking of riverboats within such areas.
22		(k) An owners licensee may conduct land-based gambling
23		operations upon approval by the Board.
24		(l) An owners licensee may conduct gaming at a temporary
25		facility pending the construction of a permanent facility or
26		the remodeling or relocation of an existing facility to

SB1739 Engrossed - 387 - LRB098 10559 AMC 40804 b
1		accommodate gaming participants for up to 24 months after the
2		temporary facility begins to conduct gaming. Upon request by an
3		owners licensee and upon a showing of good cause by the owners
4		licensee, the Board shall extend the period during which the
5		licensee may conduct gaming at a temporary facility by up to 12
6		months. The Board shall make rules concerning the conduct of
7		gaming from temporary facilities.
8		(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
9		(230 ILCS 10/7.3)
10		Sec. 7.3. State conduct of gambling operations.
11		(a) If, after reviewing each application for a re-issued
12		license, the Board determines that the highest prospective
13		total revenue to the State would be derived from State conduct
14		of the gambling operation in lieu of re-issuing the license,
15		the Board shall inform each applicant of its decision. The
16		Board shall thereafter have the authority, without obtaining an
17		owners license, to conduct casino or riverboat gambling
18		operations as previously authorized by the terminated,
19		expired, revoked, or nonrenewed license through a licensed
20		manager selected pursuant to an open and competitive bidding
21		process as set forth in Section 7.5 and as provided in Section
22		7.4.
23		(b) The Board may locate any casino or riverboat on which a
24		gambling operation is conducted by the State in any home dock
25		or other location authorized by Section 3(c) upon receipt of

SB1739 Engrossed - 388 - LRB098 10559 AMC 40804 b
1		approval from a majority vote of the governing body of the
2		municipality or county, as the case may be, in which the
3		riverboat will dock.
4		(c) The Board shall have jurisdiction over and shall
5		supervise all gambling operations conducted by the State
6		provided for in this Act and the Chicago Casino Development
7		Authority Act and shall have all powers necessary and proper to
8		fully and effectively execute the provisions of this Act and
9		the Chicago Casino Development Authority Act relating to
10		gambling operations conducted by the State.
11		(d) The maximum number of owners licenses authorized under
12		Section 7 7(e) shall be reduced by one for each instance in
13		which the Board authorizes the State to conduct a casino or
14		riverboat gambling operation under subsection (a) in lieu of
15		re-issuing a license to an applicant under Section 7.1.
16		(Source: P.A. 93-28, eff. 6-20-03.)
17		(230 ILCS 10/7.5)
18		Sec. 7.5. Competitive Bidding. When the Board determines
19		that (i) it will re-issue an owners license pursuant to an open
20		and competitive bidding process, as set forth in Section 7.1,
21		(ii) or that it will issue a managers license pursuant to an
22		open and competitive bidding process, as set forth in Section
23		7.4, (iii) it will issue an owners license pursuant to an open
24		and competitive bidding process, as set forth in Section 7.11,
25		or (iv) it will allocate unused gaming positions pursuant to an

SB1739 Engrossed - 389 - LRB098 10559 AMC 40804 b
1		open and competitive bidding process, as set forth in
2		subsection (h-10) of Section 7, the open and competitive
3		bidding process shall adhere to the following procedures:
4		(1) The Board shall make applications for owners and
5		managers licenses available to the public and allow a
6		reasonable time for applicants to submit applications to the
7		Board.
8		(2) During the filing period for owners or managers license
9		applications, the Board may retain the services of an
10		investment banking firm to assist the Board in conducting the
11		open and competitive bidding process.
12		(3) After receiving all of the bid proposals, the Board
13		shall open all of the proposals in a public forum and disclose
14		the prospective owners or managers names, venture partners, if
15		any, and, in the case of applicants for owners licenses, the
16		locations of the proposed development sites.
17		(4) The Board shall summarize the terms of the proposals
18		and may make this summary available to the public.
19		(5) The Board shall evaluate the proposals within a
20		reasonable time and select no more than 3 final applicants to
21		make presentations of their proposals to the Board.
22		(6) The final applicants shall make their presentations to
23		the Board on the same day during an open session of the Board.
24		(7) As soon as practicable after the public presentations
25		by the final applicants, the Board, in its discretion, may
26		conduct further negotiations among the 3 final applicants.

SB1739 Engrossed - 390 - LRB098 10559 AMC 40804 b
1		During such negotiations, each final applicant may increase its
2		license bid or otherwise enhance its bid proposal. At the
3		conclusion of such negotiations, the Board shall select the
4		winning proposal. In the case of negotiations for an owners
5		license, the Board may, at the conclusion of such negotiations,
6		make the determination allowed under Section 7.3(a).
7		(8) Upon selection of a winning bid, the Board shall
8		evaluate the winning bid within a reasonable period of time for
9		licensee suitability in accordance with all applicable
10		statutory and regulatory criteria.
11		(9) If the winning bidder is unable or otherwise fails to
12		consummate the transaction, (including if the Board determines
13		that the winning bidder does not satisfy the suitability
14		requirements), the Board may, on the same criteria, select from
15		the remaining bidders or make the determination allowed under
16		Section 7.3(a).
17		(Source: P.A. 93-28, eff. 6-20-03.)
18		(230 ILCS 10/7.6 new)
19		Sec. 7.6. Electronic gaming.
20		(a) The General Assembly finds that the horse racing and
21		riverboat gambling industries share many similarities and
22		collectively comprise the bulk of the State's gaming industry.
23		One feature common to both industries is that each is highly
24		regulated by the State of Illinois. The General Assembly
25		further finds, however, that despite their shared features each

SB1739 Engrossed - 391 - LRB098 10559 AMC 40804 b
1		industry is distinct from the other in that horse racing is and
2		continues to be intimately tied to Illinois' agricultural
3		economy and is, at its core, a spectator sport. This
4		distinction requires the General Assembly to utilize different
5		methods to regulate and promote the horse racing industry
6		throughout the State. The General Assembly finds that in order
7		to promote live horse racing as a spectator sport in Illinois
8		and the agricultural economy of this State, it is necessary to
9		allow electronic gaming at Illinois race tracks as an ancillary
10		use given the success of other states in increasing live racing
11		purse accounts and improving the quality of horses
12		participating in horse race meetings.
13		(b) The Illinois Gaming Board shall award one electronic
14		gaming license to each person or entity having operating
15		control of a race track that applies under Section 56 of the
16		Illinois Horse Racing Act of 1975, subject to the application
17		and eligibility requirements of this Section. Within 60 days
18		after the effective date of this amendatory Act of the 98th
19		General Assembly, a person or entity having operating control
20		of a race track may submit an application for an electronic
21		gaming license. The application shall be made on such forms as
22		provided by the Board and shall contain such information as the
23		Board prescribes, including, but not limited to, the identity
24		of any race track at which electronic gaming will be conducted,
25		detailed information regarding the ownership and management of
26		the applicant, and detailed personal information regarding the

SB1739 Engrossed - 392 - LRB098 10559 AMC 40804 b
1		applicant. The application shall specify the number of gaming
2		positions the applicant intends to use and the place where the
3		electronic gaming facility will operate. A person who knowingly
4		makes a false statement on an application is guilty of a Class
5		A misdemeanor.
6		Each applicant shall disclose the identity of every person
7		or entity having a direct or indirect pecuniary interest
8		greater than 1% in any race track with respect to which the
9		license is sought. If the disclosed entity is a corporation,
10		the applicant shall disclose the names and addresses of all
11		stockholders and directors. If the disclosed entity is a
12		limited liability company, the applicant shall disclose the
13		names and addresses of all members and managers. If the
14		disclosed entity is a partnership, the applicant shall disclose
15		the names and addresses of all partners, both general and
16		limited. If the disclosed entity is a trust, the applicant
17		shall disclose the names and addresses of all beneficiaries.
18		An application shall be filed and considered in accordance
19		with the rules of the Board. Each application for an electronic
20		gaming license shall include a non-refundable application fee
21		of $100,000. In addition, a non-refundable fee of $50,000 shall
22		be paid at the time of filing to defray the costs associated
23		with background investigations conducted by the Board. If the
24		costs of the background investigation exceed $50,000, the
25		applicant shall pay the additional amount to the Board within 7
26		days after a request by the Board. If the costs of the

SB1739 Engrossed - 393 - LRB098 10559 AMC 40804 b
1		investigation are less than $50,000, the applicant shall
2		receive a refund of the remaining amount. All information,
3		records, interviews, reports, statements, memoranda, or other
4		data supplied to or used by the Board in the course of this
5		review or investigation of an applicant for an electronic
6		gaming license under this Act shall be privileged and strictly
7		confidential and shall be used only for the purpose of
8		evaluating an applicant for an electronic gaming license or a
9		renewal. Such information, records, interviews, reports,
10		statements, memoranda, or other data shall not be admissible as
11		evidence nor discoverable in any action of any kind in any
12		court or before any tribunal, board, agency or person, except
13		for any action deemed necessary by the Board. The application
14		fee shall be deposited into the Gaming Facilities Fee Revenue
15		Fund.
16		Each applicant shall submit with his or her application, on
17		forms provided by the Board, 2 sets of his or her fingerprints.
18		The Board shall charge each applicant a fee set by the
19		Department of State Police to defray the costs associated with
20		the search and classification of fingerprints obtained by the
21		Board with respect to the applicant's application. This fee
22		shall be paid into the State Police Services Fund.
23		(c) The Board shall determine within 120 days after
24		receiving an application for an electronic gaming license
25		whether to grant an electronic gaming license to the applicant.
26		If the Board does not make a determination within that time

SB1739 Engrossed - 394 - LRB098 10559 AMC 40804 b
1		period, then the Board shall give a written explanation to the
2		applicant as to why it has not reached a determination and when
3		it reasonably expects to make a determination.
4		The electronic gaming licensee shall purchase up to the
5		amount of electronic gaming positions authorized under this Act
6		within 120 days after receiving its electronic gaming license.
7		If an electronic gaming licensee is prepared to purchase the
8		electronic gaming positions, but is temporarily prohibited
9		from doing so by order of a court of competent jurisdiction or
10		the Board, then the 120-day period is tolled until a resolution
11		is reached.
12		An electronic gaming license shall authorize its holder to
13		conduct electronic gaming at its race track at the following
14		times:
15		(1) On days when it conducts live racing at the track
16		where its electronic gaming facility is located, from 8:00
17		a.m. until 3:00 a.m. on the following day.
18		(2) On days when it is scheduled to conduct simulcast
19		wagering on races run in the United States, from 8:00 a.m.
20		until 3:00 a.m. on the following day.
21		Additionally, the Board may extend these days of operation
22		and hours upon request by an organization licensee as the Board
23		sees fit.
24		A license to conduct electronic gaming and any renewal of
25		an electronic gaming license shall authorize electronic gaming
26		for a period of 4 years. The fee for the issuance or renewal of

SB1739 Engrossed - 395 - LRB098 10559 AMC 40804 b
1		an electronic gaming license shall be $100,000.
2		(d) To be eligible to conduct electronic gaming, a person
3		or entity having operating control of a race track must (i)
4		obtain an electronic gaming license, (ii) hold an organization
5		license under the Illinois Horse Racing Act of 1975, (iii) hold
6		an inter-track wagering license, (iv) pay an initial fee of
7		$30,000 per gaming position from electronic gaming licensees
8		where electronic gaming is conducted in Cook County and $17,500
9		for electronic gaming licensees where electronic gaming is
10		located outside of Cook County before beginning to conduct
11		electronic gaming plus make the reconciliation payment
12		required under subsection (i), (v) conduct at least 240 live
13		races at each track per year or for a licensee that is only
14		authorized 350 gaming positions pursuant to subsection (d) of
15		Section 7.6 of this Act, have a fully operational facility
16		running at least 96 live races over a period of at least 15
17		days per year until such time as the total number of gaming
18		positions is increased to 900, (vi) meet the requirements of
19		subsection (a) of Section 56 of the Illinois Horse Racing Act
20		of 1975, (vii) for organization licensees conducting
21		standardbred race meetings that had an open backstretch in
22		2009, keep backstretch barns and dormitories open and
23		operational year-round unless a lesser schedule is mutually
24		agreed to by the organization licensee and the horsemen's
25		association racing at that organization licensee's race
26		meeting, (viii) for organization licensees conducting

SB1739 Engrossed - 396 - LRB098 10559 AMC 40804 b
1		thoroughbred race meetings, the organization licensee must
2		maintain accident medical expense liability insurance coverage
3		of $1,000,000 for jockeys, and (ix) meet all other requirements
4		of this Act that apply to owners licensees. Only those persons
5		or entities (or its successors or assigns) that had operating
6		control of a race track and held an inter-track wagering
7		license authorized by the Illinois Racing Board in 2009 are
8		eligible.
9		An electronic gaming licensee may enter into a joint
10		venture with a licensed owner to own, manage, conduct, or
11		otherwise operate the electronic gaming licensee's electronic
12		gaming facilities, unless the electronic gaming licensee has a
13		parent company or other affiliated company that is, directly or
14		indirectly, wholly owned by a parent company that is also
15		licensed to conduct electronic gaming, casino gaming, or their
16		equivalent in another state.
17		All payments by licensees under this subsection (c) shall
18		be deposited into the Gaming Facilities Fee Revenue Fund.
19		(e) A person or entity is ineligible to receive an
20		electronic gaming license if:
21		(1) the person or entity has been convicted of a felony
22		under the laws of this State, any other state, or the
23		United States, including a conviction under the Racketeer
24		Influenced and Corrupt Organizations Act;
25		(2) the person or entity has been convicted of any
26		violation of Article 28 of the Criminal Code of 2012, or

SB1739 Engrossed - 397 - LRB098 10559 AMC 40804 b
1		substantially similar laws of any other jurisdiction;
2		(3) the person or entity has submitted an application
3		for a license under this Act that contains false
4		information;
5		(4) the person is a member of the Board;
6		(5) a person defined in (1), (2), (3), or (4) of this
7		subsection (e) is an officer, director, or managerial
8		employee of the entity;
9		(6) the person or entity employs a person defined in
10		(1), (2), (3), or (4) of this subsection (e) who
11		participates in the management or operation of gambling
12		operations authorized under this Act; or
13		(7) a license of the person or entity issued under this
14		Act or a license to own or operate gambling facilities in
15		any other jurisdiction has been revoked.
16		(f) The Board may approve electronic gaming positions
17		statewide as provided in this Section. The authority to operate
18		electronic gaming positions under this Section shall be
19		allocated as follows: up to 1,200 gaming positions for any
20		electronic gaming licensee in Cook County whose electronic
21		gaming license originates with an organization licensee that
22		conducted live racing in calendar year 2010; up to 900 gaming
23		positions for any electronic gaming licensee outside of Cook
24		County whose electronic gaming license originates with an
25		organization licensee that conducted live racing in calendar
26		year 2010; and up to 350 gaming positions for any electronic

SB1739 Engrossed - 398 - LRB098 10559 AMC 40804 b
1		gaming licensee whose electronic gaming license originates
2		with an organization licensee that did not conduct live racing
3		in calendar year 2010, which shall increase to 900 gaming
4		positions in the calendar year following the year in which the
5		electronic gaming licensee conducts 96 live races.
6		(g) Each applicant for an electronic gaming license shall
7		specify in its application for licensure the number of gaming
8		positions it will operate, up to the applicable limitation set
9		forth in subsection (f) of this Section. Any unreserved gaming
10		positions that are not specified shall be forfeited and
11		retained by the Board. For the purposes of this subsection (g),
12		an electronic gaming licensee that did not conduct live racing
13		in 2010 may reserve up to 900 positions and shall not be
14		penalized under this Section for not operating those positions
15		until it meets the requirements of subsection (f) of this
16		Section, but such licensee shall not request unreserved gaming
17		positions under this subsection (g) until its 900 positions are
18		all operational.
19		Thereafter, the Board shall publish the number of
20		unreserved electronic gaming positions and shall accept
21		requests for additional positions from any electronic gaming
22		licensee that initially reserved all of the positions that were
23		offered. The Board shall allocate expeditiously the unreserved
24		electronic gaming positions to requesting electronic gaming
25		licensees in a manner that maximizes revenue to the State. The
26		Board may allocate any such unused electronic gaming positions

SB1739 Engrossed - 399 - LRB098 10559 AMC 40804 b
1		pursuant to an open and competitive bidding process, as
2		provided under Section 7.5 of this Act. This process shall
3		continue until all unreserved gaming positions have been
4		purchased. All positions obtained pursuant to this process and
5		all positions the electronic gaming licensee specified it would
6		operate in its application must be in operation within 18
7		months after they were obtained or the electronic gaming
8		licensee forfeits the right to operate those positions, but is
9		not entitled to a refund of any fees paid. The Board may, after
10		holding a public hearing, grant extensions so long as the
11		electronic gaming licensee is working in good faith to make the
12		positions operational. The extension may be for a period of 6
13		months. If, after the period of the extension, the electronic
14		gaming licensee has not made the positions operational, then
15		another public hearing must be held by the Board before it may
16		grant another extension.
17		Unreserved gaming positions retained from and allocated to
18		electronic gaming licensees by the Board pursuant to this
19		subsection (g) shall not be allocated to owners licensees
20		pursuant to subsection (h-10) of Section 7 of this Act.
21		For the purpose of this subsection (g), the unreserved
22		gaming positions for each electronic gaming licensee shall be
23		the applicable limitation set forth in subsection (f) of this
24		Section, less the number of reserved gaming positions by such
25		electronic gaming licensee, and the total unreserved gaming
26		positions shall be the aggregate of the unreserved gaming

SB1739 Engrossed - 400 - LRB098 10559 AMC 40804 b
1		positions for all electronic gaming licensees.
2		(h) Subject to the approval of the Illinois Gaming Board,
3		an electronic gaming licensee may make modification or
4		additions to any existing buildings and structures to comply
5		with the requirements of this Act. The Illinois Gaming Board
6		shall make its decision after consulting with the Illinois
7		Racing Board. In no case, however, shall the Illinois Gaming
8		Board approve any modification or addition that alters the
9		grounds of the organizational licensee such that the act of
10		live racing is an ancillary activity to electronic gaming.
11		Electronic gaming may take place in existing structures where
12		inter-track wagering is conducted at the race track or a
13		facility within 300 yards of the race track in accordance with
14		the provisions of this Act and the Illinois Horse Racing Act of
15		1975.
16		(i) An electronic gaming licensee may conduct electronic
17		gaming at a temporary facility pending the construction of a
18		permanent facility or the remodeling or relocation of an
19		existing facility to accommodate electronic gaming
20		participants for up to 24 months after the temporary facility
21		begins to conduct electronic gaming. Upon request by an
22		electronic gaming licensee and upon a showing of good cause by
23		the electronic gaming licensee, the Board shall extend the
24		period during which the licensee may conduct electronic gaming
25		at a temporary facility by up to 12 months. The Board shall
26		make rules concerning the conduct of electronic gaming from

SB1739 Engrossed - 401 - LRB098 10559 AMC 40804 b
1		temporary facilities.
2		Electronic gaming may take place in existing structures
3		where inter-track wagering is conducted at the race track or a
4		facility within 300 yards of the race track in accordance with
5		the provisions of this Act and the Illinois Horse Racing Act of
6		1975. Any electronic gaming conducted at a permanent facility
7		within 300 yards of the race track in accordance with this Act
8		and the Illinois Horse Racing Act of 1975 shall have an
9		all-weather egress connecting the electronic gaming facility
10		and the race track facility or, on days and hours of live
11		racing, a complimentary shuttle service between the permanent
12		electronic gaming facility and the race track facility and
13		shall not charge electronic gaming participants an additional
14		admission fee to the race track facility.
15		(j) The Illinois Gaming Board must adopt emergency rules in
16		accordance with Section 5-45 of the Illinois Administrative
17		Procedure Act as necessary to ensure compliance with the
18		provisions of this amendatory Act of the 98th General Assembly
19		concerning electronic gaming. The adoption of emergency rules
20		authorized by this subsection (j) shall be deemed to be
21		necessary for the public interest, safety, and welfare.
22		(k) Each electronic gaming licensee who obtains electronic
23		gaming positions must make a reconciliation payment 3 years
24		after the date the electronic gaming licensee begins operating
25		the positions in an amount equal to 75% of the difference
26		between its adjusted gross receipts from electronic gaming and

SB1739 Engrossed - 402 - LRB098 10559 AMC 40804 b
1		amounts paid to its purse accounts pursuant to item (1) of
2		subsection (b) of Section 56 of the Illinois Horse Racing Act
3		of 1975 for the 12-month period for which such difference was
4		the largest, minus an amount equal to the initial per position
5		fee paid by the electronic gaming licensee. If this calculation
6		results in a negative amount, then the electronic gaming
7		licensee is not entitled to any reimbursement of fees
8		previously paid. This reconciliation payment may be made in
9		installments over a period of no more than 2 years, subject to
10		Board approval. Any installment payments shall include an
11		annual market interest rate as determined by the Board.
12		All payments by licensees under this subsection (i) shall
13		be deposited into the Gaming Facilities Fee Revenue Fund.
14		(l) As soon as practical after a request is made by the
15		Illinois Gaming Board, to minimize duplicate submissions by the
16		applicant, the Illinois Racing Board must provide information
17		on an applicant for an electronic gaming license to the
18		Illinois Gaming Board.
19		(m) Subject to the approval of the Illinois Gaming Board,
20		an organization licensee that has received an electronic gaming
21		license under this Act and has operating control of a race
22		track facility located in Cook County may relocate its race
23		track facility as follows:
24		(1) the organization licensee may relocate within a
25		3-mile radius of its existing race track facility so long
26		as the organization licensee remains in Cook County and

SB1739 Engrossed - 403 - LRB098 10559 AMC 40804 b
1		submits its plan to construct a new structure to conduct
2		electronic gaming operations; and
3		(2) the organization licensee may not relocate within a
4		5-mile radius of a riverboat if the owners license was
5		issued prior to December 31, 2011.
6		The relocation must include the race track facility, including
7		the race track operations used to conduct live racing and the
8		electronic gaming facility in its entirety. For the purposes of
9		this subsection (m), "race track facility" means all operations
10		conducted on the race track property for which it was awarded a
11		license for pari-mutuel wagering and live racing in the year
12		2010, except for the real estate itself. The Illinois Gaming
13		Board shall make its decision after consulting with the
14		Illinois Racing Board, and any relocation application shall be
15		subject to all of the provisions of this Act and the Illinois
16		Horse Racing Act of 1975.
17		(230 ILCS 10/7.7 new)
18		Sec. 7.7. Home rule. The regulation and licensing of
19		electronic gaming and electronic gaming licensees are
20		exclusive powers and functions of the State. A home rule unit
21		may not regulate or license electronic gaming or electronic
22		gaming licensees. This Section is a denial and limitation of
23		home rule powers and functions under subsection (h) of Section
24		6 of Article VII of the Illinois Constitution.

SB1739 Engrossed - 404 - LRB098 10559 AMC 40804 b
1		(230 ILCS 10/7.8 new)
2		Sec. 7.8. Casino operator license.
3		(a) A qualified person may apply to the Board for a casino
4		operator license to operate and manage any gambling operation
5		conducted by the Authority. The application shall be made on
6		forms provided by the Board and shall contain such information
7		as the Board prescribes, including but not limited to
8		information required in Sections 6(a), (b), and (c) and
9		information relating to the applicant's proposed price to
10		manage the Authority's gambling operations and to provide the
11		casino, gambling equipment, and supplies necessary to conduct
12		Authority gambling operations. The application shall also
13		include a non-refundable application fee of $100,000. This
14		application fee shall be deposited into the Gaming Facilities
15		Fee Revenue Fund.
16		(b) A person or entity is ineligible to receive a casino
17		operator 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 2012, or substantially
22		similar laws of any other jurisdiction;
23		(3) the person has submitted an application for a
24		license under this Act or the Chicago Casino Development
25		Authority Act which contains false information;
26		(4) the person is a member of the Board or the Chicago

SB1739 Engrossed - 405 - LRB098 10559 AMC 40804 b
1		Casino Development Board or the person is an official or
2		employee of the Chicago Casino Development Authority or the
3		City of Chicago;
4		(5) a person defined in (1), (2), (3), or (4) is an
5		officer, director, or managerial employee of the entity;
6		(6) the entity employs a person defined in (1), (2),
7		(3), or (4) who participates in the management or operation
8		of gambling operations authorized under this Act; or
9		(7) a license of the person or entity issued under this
10		Act, or a license to own or operate gambling facilities in
11		any other jurisdiction, has been revoked.
12		(c) In determining whether to grant a casino operator
13		license, the Board shall consider:
14		(1) the character, reputation, experience and
15		financial integrity of the applicants and of any other or
16		separate person that either:
17		(A) controls, directly or indirectly, such
18		applicant, or
19		(B) is controlled, directly or indirectly, by such
20		applicant or by a person which controls, directly or
21		indirectly, such applicant;
22		(2) the facilities or proposed facilities for the
23		conduct of gambling;
24		(3) the preference of the municipality in which the
25		licensee will operate;
26		(4) the extent to which the ownership of the applicant

SB1739 Engrossed - 406 - LRB098 10559 AMC 40804 b
1		reflects the diversity of the State by including minority
2		persons and females and the good faith affirmative action
3		plan of each applicant to recruit, train, and upgrade
4		minority persons and females in all employment
5		classifications;
6		(5) the financial ability of the applicant to purchase
7		and maintain adequate liability and casualty insurance;
8		(6) whether the applicant has adequate capitalization
9		to provide and maintain, for the duration of a license, a
10		casino; and
11		(7) the extent to which the applicant exceeds or meets
12		other standards for the issuance of a casino operator
13		license that the Board may adopt by rule.
14		(d) Each applicant shall submit with his or her
15		application, on forms prescribed by the Board, 2 sets of his or
16		her fingerprints. The Board shall charge each applicant a fee
17		set by the Department of State Police to defray the costs
18		associated with the search and classification of fingerprints
19		obtained by the Board with respect to the applicant's
20		application. This fee shall be paid into the State Police
21		Services Fund.
22		(e) A person who knowingly makes a false statement on an
23		application is guilty of a Class A misdemeanor.
24		(f) The Board shall charge each applicant a non-refundable
25		fee of $50,000 to defray the costs associated with the
26		background investigation conducted by the Board. This fee shall

SB1739 Engrossed - 407 - LRB098 10559 AMC 40804 b
1		be exclusive of any other fee or fees charged in connection
2		with an application for and, if applicable, the issuance of, a
3		casino operator license. If the costs of the investigation
4		exceed $50,000, the Board shall immediately notify the
5		applicant of the additional amount owed, payment of which must
6		be submitted to the Board within 7 days after such
7		notification. All information, records, interviews, reports,
8		statements, memoranda, or other data supplied to or used by the
9		Board in the course of its review or investigation of an
10		application for a license or a renewal under this Act shall be
11		privileged and strictly confidential and shall be used only for
12		the purpose of evaluating an applicant for a license or a
13		renewal. Such information, records, interviews, reports,
14		statements, memoranda, or other data shall not be admissible as
15		evidence, nor discoverable in any action of any kind in any
16		court or before any tribunal, board, agency, or person, except
17		for any action deemed necessary by the Board.
18		(g) The casino operator license shall be issued only upon
19		proof that the applicant has entered into a labor peace
20		agreement with each labor organization that is actively engaged
21		in representing and attempting to represent casino and
22		hospitality industry workers in this State. The labor peace
23		agreement must be a valid and enforceable agreement under 29
24		U.S.C. 185 that protects the city's and State's revenues from
25		the operation of the casino facility by prohibiting the labor
26		organization and its members from engaging in any picketing,

SB1739 Engrossed - 408 - LRB098 10559 AMC 40804 b
1		work stoppages, boycotts, or any other economic interference
2		with the casino facility for at least the first 5 years of the
3		casino license and must cover all operations at the casino
4		facility that are conducted by lessees or tenants or under
5		management agreements.
6		(h) The casino operator license shall be for a term of 4
7		years, shall be renewable by the Board, and shall contain such
8		terms and provisions as the Board deems necessary to protect or
9		enhance the credibility and integrity of State gambling
10		operations, achieve the highest prospective total revenue to
11		the State, and otherwise serve the interests of the citizens of
12		Illinois. The Board may suspend, restrict, or revoke the
13		license:
14		(1) for violation of any provision of this Act;
15		(2) for violation of any rules of the Board;
16		(3) for any cause which, if known to the Board, would
17		have disqualified the applicant from receiving the
18		license; or
19		(4) for any other just cause.
20		(230 ILCS 10/7.9 new)
21		Sec. 7.9. Diversity program.
22		(a) Each owners licensee, electronic gaming licensee,
23		casino operator licensee, and suppliers licensee shall
24		establish and maintain a diversity program to ensure
25		non-discrimination in the award and administration of

SB1739 Engrossed - 409 - LRB098 10559 AMC 40804 b
1		contracts. The programs shall establish goals of awarding not
2		less than 20% of the annual dollar value of all contracts,
3		purchase orders, or other agreements to minority-owned
4		businesses and 5% of the annual dollar value of all contracts
5		to female-owned businesses.
6		(b) Each owners licensee, electronic gaming licensee,
7		casino operator licensee, and suppliers licensee shall
8		establish and maintain a diversity program designed to promote
9		equal opportunity for employment. The program shall establish
10		hiring goals as the Board and each licensee determines
11		appropriate. The Board shall monitor the progress of the gaming
12		licensee's progress with respect to the program's goals.
13		(c) No later than May 31 of each year, each licensee shall
14		report to the Board the number of respective employees and the
15		number of their respective employees who have designated
16		themselves as members of a minority group and gender. In
17		addition, all licensees shall submit a report with respect to
18		the minority-owned and female-owned businesses program created
19		in this Section to the Board.
20		(230 ILCS 10/7.10 new)
21		Sec. 7.10. Annual report on diversity.
22		(a) Each licensee that receives a license under Sections 7,
23		7.1, and 7.6 shall execute and file a report with the Board no
24		later than December 31 of each year that shall contain, but not
25		be limited to, the following information:

SB1739 Engrossed - 410 - LRB098 10559 AMC 40804 b
1		(i) a good faith affirmative action plan to recruit,
2		train, and upgrade minority persons, females, and persons
3		with a disability in all employment classifications;
4		(ii) the total dollar amount of contracts that were
5		awarded to businesses owned by minority persons, females,
6		and persons with a disability;
7		(iii) the total number of businesses owned by minority
8		persons, females, and persons with a disability that were
9		utilized by the licensee;
10		(iv) the utilization of businesses owned by minority
11		persons, females, and persons with disabilities during the
12		preceding year; and
13		(v) the outreach efforts used by the licensee to
14		attract investors and businesses consisting of minority
15		persons, females, and persons with a disability.
16		(b) The Board shall forward a copy of each licensee's
17		annual reports to the General Assembly no later than February 1
18		of each year.
19		(230 ILCS 10/7.11 new)
20		Sec. 7.11. Issuance of new owners licenses.
21		(a) Except for the owners license issued to the Chicago
22		Casino Development Authority, owners licenses newly authorized
23		pursuant to this amendatory Act of the 98th General Assembly
24		may be issued by the Board to a qualified applicant pursuant to
25		an open and competitive bidding process, as set forth in

SB1739 Engrossed - 411 - LRB098 10559 AMC 40804 b
1		Section 7.5, and subject to the maximum number of authorized
2		licenses set forth in subsection (e-5) of Section 7 of this
3		Act.
4		(b) To be a qualified applicant, a person or entity may not
5		be ineligible to receive an owners license under subsection (a)
6		of Section 7 of this Act and must submit an application for an
7		owners license that complies with Section 6 of this Act.
8		(c) In determining whether to grant an owners license to an
9		applicant, the Board shall consider all of the factors set
10		forth in subsections (b) and (e-10) of Section 7 of this Act,
11		as well as the amount of the applicant's license bid. The Board
12		may grant the owners license to an applicant that has not
13		submitted the highest license bid, but if it does not select
14		the highest bidder, the Board shall issue a written decision
15		explaining why another applicant was selected and identifying
16		the factors set forth in subsections (b) and (e-10) of Section
17		7 of this Act that favored the winning bidder.
18		(230 ILCS 10/7.12 new)
19		Sec. 7.12. Environmental standards. All permanent
20		casinos, riverboats, and electronic gaming facilities shall
21		consist of buildings that are certified as meeting the U.S.
22		Green Building Council's Leadership in Energy and
23		Environmental Design standards. The provisions of this Section
24		apply to a holder of an owners license, casino operator
25		license, or electronic gaming license that (i) begins

SB1739 Engrossed - 412 - LRB098 10559 AMC 40804 b
1		operations on or after January 1, 2013 or (ii) relocates its
2		facilities on or after the effective date of this amendatory
3		Act of the 98th General Assembly.
4		(230 ILCS 10/8) (from Ch. 120, par. 2408)
5		Sec. 8. Suppliers licenses.
6		(a) The Board may issue a suppliers license to such
7		persons, firms or corporations which apply therefor upon the
8		payment of a non-refundable application fee set by the Board,
9		upon a determination by the Board that the applicant is
10		eligible for a suppliers license and upon payment of a $5,000
11		annual license fee.
12		(b) The holder of a suppliers license is authorized to sell
13		or lease, and to contract to sell or lease, gambling equipment
14		and supplies to any licensee involved in the ownership or
15		management of gambling operations.
16		(c) Gambling supplies and equipment may not be distributed
17		unless supplies and equipment conform to standards adopted by
18		rules of the Board.
19		(d) A person, firm or corporation is ineligible to receive
20		a suppliers license if:
21		(1) the person has been convicted of a felony under the
22		laws of this State, any other state, or the United States;
23		(2) the person has been convicted of any violation of
24		Article 28 of the Criminal Code of 1961 or the Criminal
25		Code of 2012, or substantially similar laws of any other

SB1739 Engrossed - 413 - LRB098 10559 AMC 40804 b
1		jurisdiction;
2		(3) the person has submitted an application for a
3		license under this Act which contains false information;
4		(4) the person is a member of the Board;
5		(5) the entity firm or corporation is one in which a
6		person defined in (1), (2), (3) or (4), is an officer,
7		director or managerial employee;
8		(6) the firm or corporation employs a person who
9		participates in the management or operation of riverboat
10		gambling authorized under this Act or the Chicago Casino
11		Development Authority Act;
12		(7) the license of the person, firm or corporation
13		issued under this Act or the Chicago Casino Development
14		Authority Act, or a license to own or operate gambling
15		facilities in any other jurisdiction, has been revoked.
16		(e) Any person that supplies any equipment, devices, or
17		supplies to a licensed riverboat gambling operation or casino
18		or electronic gaming operation must first obtain a suppliers
19		license. A supplier shall furnish to the Board a list of all
20		equipment, devices and supplies offered for sale or lease in
21		connection with gambling games authorized under this Act. A
22		supplier shall keep books and records for the furnishing of
23		equipment, devices and supplies to gambling operations
24		separate and distinct from any other business that the supplier
25		might operate. A supplier shall file a quarterly return with
26		the Board listing all sales and leases. A supplier shall

SB1739 Engrossed - 414 - LRB098 10559 AMC 40804 b
1		permanently affix its name to all its equipment, devices, and
2		supplies for gambling operations. Any supplier's equipment,
3		devices or supplies which are used by any person in an
4		unauthorized gambling operation shall be forfeited to the
5		State. A holder of an owners license or an electronic gaming
6		license A licensed owner may own its own equipment, devices and
7		supplies. Each holder of an owners license or an electronic
8		gaming license under the Act shall file an annual report
9		listing its inventories of gambling equipment, devices and
10		supplies.
11		(f) Any person who knowingly makes a false statement on an
12		application is guilty of a Class A misdemeanor.
13		(g) Any gambling equipment, devices and supplies provided
14		by any licensed supplier may either be repaired on the
15		riverboat, in the casino, or at the electronic gaming facility
16		or removed from the riverboat, casino, or electronic gaming
17		facility to a an on-shore facility owned by the holder of an
18		owners license or electronic gaming license for repair.
19		(Source: P.A. 97-1150, eff. 1-25-13.)
20		(230 ILCS 10/9) (from Ch. 120, par. 2409)
21		Sec. 9. Occupational licenses.
22		(a) The Board may issue an occupational license to an
23		applicant upon the payment of a non-refundable fee set by the
24		Board, upon a determination by the Board that the applicant is
25		eligible for an occupational license and upon payment of an

SB1739 Engrossed - 415 - LRB098 10559 AMC 40804 b
1		annual license fee in an amount to be established. To be
2		eligible for an occupational license, an applicant must:
3		(1) be at least 21 years of age if the applicant will
4		perform any function involved in gaming by patrons. Any
5		applicant seeking an occupational license for a non-gaming
6		function shall be at least 18 years of age;
7		(2) not have been convicted of a felony offense, a
8		violation of Article 28 of the Criminal Code of 1961 or the
9		Criminal Code of 2012, or a similar statute of any other
10		jurisdiction;
11		(2.5) not have been convicted of a crime, other than a
12		crime described in item (2) of this subsection (a),
13		involving dishonesty or moral turpitude, except that the
14		Board may, in its discretion, issue an occupational license
15		to a person who has been convicted of a crime described in
16		this item (2.5) more than 10 years prior to his or her
17		application and has not subsequently been convicted of any
18		other crime;
19		(3) have demonstrated a level of skill or knowledge
20		which the Board determines to be necessary in order to
21		operate gambling aboard a riverboat, in a casino, or at an
22		electronic gaming facility; and
23		(4) have met standards for the holding of an
24		occupational license as adopted by rules of the Board. Such
25		rules shall provide that any person or entity seeking an
26		occupational license to manage gambling operations under

SB1739 Engrossed - 416 - LRB098 10559 AMC 40804 b
1		this Act or the Chicago Casino Development Authority Act
2		hereunder shall be subject to background inquiries and
3		further requirements similar to those required of
4		applicants for an owners license. Furthermore, such rules
5		shall provide that each such entity shall be permitted to
6		manage gambling operations for only one licensed owner.
7		(b) Each application for an occupational license shall be
8		on forms prescribed by the Board and shall contain all
9		information required by the Board. The applicant shall set
10		forth in the application: whether he has been issued prior
11		gambling related licenses; whether he has been licensed in any
12		other state under any other name, and, if so, such name and his
13		age; and whether or not a permit or license issued to him in
14		any other state has been suspended, restricted or revoked, and,
15		if so, for what period of time.
16		(c) Each applicant shall submit with his application, on
17		forms provided by the Board, 2 sets of his fingerprints. The
18		Board shall charge each applicant a fee set by the Department
19		of State Police to defray the costs associated with the search
20		and classification of fingerprints obtained by the Board with
21		respect to the applicant's application. These fees shall be
22		paid into the State Police Services Fund.
23		(d) The Board may in its discretion refuse an occupational
24		license to any person: (1) who is unqualified to perform the
25		duties required of such applicant; (2) who fails to disclose or
26		states falsely any information called for in the application;

SB1739 Engrossed - 417 - LRB098 10559 AMC 40804 b
1		(3) who has been found guilty of a violation of this Act or the
2		Chicago Casino Development Authority Act or whose prior
3		gambling related license or application therefor has been
4		suspended, restricted, revoked or denied for just cause in any
5		other state; or (4) for any other just cause.
6		(e) The Board may suspend, revoke or restrict any
7		occupational licensee: (1) for violation of any provision of
8		this Act; (2) for violation of any of the rules and regulations
9		of the Board; (3) for any cause which, if known to the Board,
10		would have disqualified the applicant from receiving such
11		license; or (4) for default in the payment of any obligation or
12		debt due to the State of Illinois; or (5) for any other just
13		cause.
14		(f) A person who knowingly makes a false statement on an
15		application is guilty of a Class A misdemeanor.
16		(g) Any license issued pursuant to this Section shall be
17		valid for a period of one year from the date of issuance.
18		(h) Nothing in this Act shall be interpreted to prohibit a
19		licensed owner or electronic gaming licensee from entering into
20		an agreement with a public community college or a school
21		approved under the Private Business and Vocational Schools Act
22		of 2012 for the training of any occupational licensee. Any
23		training offered by such a school shall be in accordance with a
24		written agreement between the licensed owner or electronic
25		gaming licensee and the school.
26		(i) Any training provided for occupational licensees may be

SB1739 Engrossed - 418 - LRB098 10559 AMC 40804 b
1		conducted either at the site of the gambling facility on the
2		riverboat or at a school with which a licensed owner or
3		electronic gaming licensee has entered into an agreement
4		pursuant to subsection (h).
5		(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
6		97-1150, eff. 1-25-13.)
7		(230 ILCS 10/11) (from Ch. 120, par. 2411)
8		Sec. 11. Conduct of gambling. Gambling may be conducted by
9		licensed owners or licensed managers on behalf of the State
10		aboard riverboats. Gambling may be conducted by electronic
11		gaming licensees at electronic gaming facilities. Gambling may
12		be conducted by a casino operator licensee at a casino.
13		Gambling authorized under this Section is , subject to the
14		following standards:
15		(1) A licensee may conduct riverboat gambling
16		authorized under this Act regardless of whether it conducts
17		excursion cruises. A licensee may permit the continuous
18		ingress and egress of patrons passengers on a riverboat not
19		used for excursion cruises for the purpose of gambling.
20		Excursion cruises shall not exceed 4 hours for a round
21		trip. However, the Board may grant express approval for an
22		extended cruise on a case-by-case basis.
23		(2) (Blank).
24		(3) Minimum and maximum wagers on games shall be set by
25		the licensee.

SB1739 Engrossed - 419 - LRB098 10559 AMC 40804 b
1		(4) Agents of the Board and the Department of State
2		Police may board and inspect any riverboat, enter and
3		inspect any portion of a casino, or enter and inspect any
4		portion of an electronic gaming facility at any time for
5		the purpose of determining whether this Act or the Chicago
6		Casino Development Authority Act is being complied with.
7		Every riverboat, if under way and being hailed by a law
8		enforcement officer or agent of the Board, must stop
9		immediately and lay to.
10		(5) Employees of the Board shall have the right to be
11		present on the riverboat or in the casino or on adjacent
12		facilities under the control of the licensee and at the
13		electronic gaming facility under the control of the
14		electronic gaming licensee.
15		(6) Gambling equipment and supplies customarily used
16		in conducting riverboat or casino gambling or electronic
17		gaming must be purchased or leased only from suppliers
18		licensed for such purpose under this Act. The Board may
19		approve the transfer, sale, or lease of gambling equipment
20		and supplies by a licensed owner from or to an affiliate of
21		the licensed owner as long as the gambling equipment and
22		supplies were initially acquired from a supplier licensed
23		in Illinois.
24		(7) Persons licensed under this Act or the Chicago
25		Casino Development Authority Act shall permit no form of
26		wagering on gambling games except as permitted by this Act.

SB1739 Engrossed - 420 - LRB098 10559 AMC 40804 b
1		(8) Wagers may be received only from a person present
2		on a licensed riverboat, in a casino, or at an electronic
3		gaming facility. No person present on a licensed riverboat,
4		in a casino, or at an electronic gaming facility shall
5		place or attempt to place a wager on behalf of another
6		person who is not present on the riverboat, in a casino, or
7		at the electronic gaming facility.
8		(9) Wagering, including electronic gaming, shall not
9		be conducted with money or other negotiable currency.
10		(10) A person under age 21 shall not be permitted on an
11		area of a riverboat or casino where gambling is being
12		conducted or at an electronic gaming facility where
13		gambling is being conducted, except for a person at least
14		18 years of age who is an employee of the riverboat or
15		casino gambling operation or electronic gaming operation.
16		No employee under age 21 shall perform any function
17		involved in gambling by the patrons. No person under age 21
18		shall be permitted to make a wager under this Act or the
19		Chicago Casino Development Authority Act, and any winnings
20		that are a result of a wager by a person under age 21,
21		whether or not paid by a licensee, shall be treated as
22		winnings for the privilege tax purposes, confiscated, and
23		forfeited to the State and deposited into the Education
24		Assistance Fund.
25		(11) Gambling excursion cruises are permitted only
26		when the waterway for which the riverboat is licensed is

SB1739 Engrossed - 421 - LRB098 10559 AMC 40804 b
1		navigable, as determined by the Board in consultation with
2		the U.S. Army Corps of Engineers. This paragraph (11) does
3		not limit the ability of a licensee to conduct gambling
4		authorized under this Act when gambling excursion cruises
5		are not permitted.
6		(12) All tokens, chips or electronic cards used to make
7		wagers must be purchased (i) from a licensed owner or
8		manager, in the case of a riverboat, either aboard a
9		riverboat or at an onshore facility which has been approved
10		by the Board and which is located where the riverboat
11		docks, (ii) in the case of a casino, from a licensed owner
12		or licensed casino operator at the casino, or (iii) from an
13		electronic gaming licensee at the electronic gaming
14		facility. The tokens, chips or electronic cards may be
15		purchased by means of an agreement under which the owner,
16		or manager, or licensed casino operator extends credit to
17		the patron. Such tokens, chips or electronic cards may be
18		used while aboard the riverboat, in the casino, or at the
19		electronic gaming facility only for the purpose of making
20		wagers on gambling games.
21		(13) Notwithstanding any other Section of this Act or
22		the Chicago Casino Development Authority Act, in addition
23		to the other licenses authorized under this Act or the
24		Chicago Casino Development Authority Act, the Board may
25		issue special event licenses allowing persons who are not
26		otherwise licensed to conduct riverboat gambling to

SB1739 Engrossed - 422 - LRB098 10559 AMC 40804 b
1		conduct such gambling on a specified date or series of
2		dates. Riverboat gambling under such a license may take
3		place on a riverboat not normally used for riverboat
4		gambling. The Board shall establish standards, fees and
5		fines for, and limitations upon, such licenses, which may
6		differ from the standards, fees, fines and limitations
7		otherwise applicable under this Act or the Chicago Casino
8		Development Authority Act. All such fees shall be deposited
9		into the State Gaming Fund. All such fines shall be
10		deposited into the Education Assistance Fund, created by
11		Public Act 86-0018, of the State of Illinois.
12		(14) In addition to the above, gambling must be
13		conducted in accordance with all rules adopted by the
14		Board.
15		(Source: P.A. 96-1392, eff. 1-1-11.)
16		(230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
17		Sec. 11.1. Collection of amounts owing under credit
18		agreements. Notwithstanding any applicable statutory provision
19		to the contrary, a licensed owner, licensed or manager,
20		licensed casino operator, or electronic gaming licensee who
21		extends credit to a riverboat gambling patron or an electronic
22		gaming patron pursuant to Section 11 (a) (12) of this Act is
23		expressly authorized to institute a cause of action to collect
24		any amounts due and owing under the extension of credit, as
25		well as the licensed owner's, licensed or manager's, licensed

SB1739 Engrossed - 423 - LRB098 10559 AMC 40804 b
1		casino operator's, or electronic gaming licensee's costs,
2		expenses and reasonable attorney's fees incurred in
3		collection.
4		(Source: P.A. 93-28, eff. 6-20-03.)
5		(230 ILCS 10/12) (from Ch. 120, par. 2412)
6		Sec. 12. Admission tax; fees.
7		(a) A tax is hereby imposed upon admissions to riverboat
8		and casino gambling facilities riverboats operated by licensed
9		owners authorized pursuant to this Act and the Chicago Casino
10		Development Authority Act. Until July 1, 2002, the rate is $2
11		per person admitted. From July 1, 2002 until July 1, 2003, the
12		rate is $3 per person admitted. From July 1, 2003 until August
13		23, 2005 (the effective date of Public Act 94-673), for a
14		licensee that admitted 1,000,000 persons or fewer in the
15		previous calendar year, the rate is $3 per person admitted; for
16		a licensee that admitted more than 1,000,000 but no more than
17		2,300,000 persons in the previous calendar year, the rate is $4
18		per person admitted; and for a licensee that admitted more than
19		2,300,000 persons in the previous calendar year, the rate is $5
20		per person admitted. Beginning on August 23, 2005 (the
21		effective date of Public Act 94-673), for a licensee that
22		admitted 1,000,000 persons or fewer in calendar year 2004, the
23		rate is $2 per person admitted, and for all other licensees,
24		including licensees that were not conducting gambling
25		operations in 2004, the rate is $3 per person admitted. This

SB1739 Engrossed - 424 - LRB098 10559 AMC 40804 b
1		admission tax is imposed upon the licensed owner conducting
2		gambling.
3		(1) The admission tax shall be paid for each admission,
4		except that a person who exits a riverboat gambling
5		facility and reenters that riverboat gambling facility
6		within the same gaming day shall be subject only to the
7		initial admission tax.
8		(2) (Blank).
9		(3) The riverboat licensee may issue tax-free passes to
10		actual and necessary officials and employees of the
11		licensee or other persons actually working on the
12		riverboat.
13		(4) The number and issuance of tax-free passes is
14		subject to the rules of the Board, and a list of all
15		persons to whom the tax-free passes are issued shall be
16		filed with the Board.
17		(a-5) A fee is hereby imposed upon admissions operated by
18		licensed managers on behalf of the State pursuant to Section
19		7.3 at the rates provided in this subsection (a-5). For a
20		licensee that admitted 1,000,000 persons or fewer in the
21		previous calendar year, the rate is $3 per person admitted; for
22		a licensee that admitted more than 1,000,000 but no more than
23		2,300,000 persons in the previous calendar year, the rate is $4
24		per person admitted; and for a licensee that admitted more than
25		2,300,000 persons in the previous calendar year, the rate is $5
26		per person admitted.

SB1739 Engrossed - 425 - LRB098 10559 AMC 40804 b
1		(1) The admission fee shall be paid for each admission.
2		(2) (Blank).
3		(3) The licensed manager may issue fee-free passes to
4		actual and necessary officials and employees of the manager
5		or other persons actually working on the riverboat.
6		(4) The number and issuance of fee-free passes is
7		subject to the rules of the Board, and a list of all
8		persons to whom the fee-free passes are issued shall be
9		filed with the Board.
10		(b) Except as provided in subsection (b-5), from From the
11		tax imposed under subsection (a) and the fee imposed under
12		subsection (a-5), a municipality shall receive from the State
13		$1 for each person embarking on a riverboat docked within the
14		municipality or entering a casino located within the
15		municipality, and a county shall receive $1 for each person
16		entering a casino or embarking on a riverboat docked within the
17		county but outside the boundaries of any municipality. The
18		municipality's or county's share shall be collected by the
19		Board on behalf of the State and remitted quarterly by the
20		State, subject to appropriation, to the treasurer of the unit
21		of local government for deposit in the general fund.
22		(b-5) From the tax imposed under subsection (a) and the fee
23		imposed under subsection (a-5), $1 for each person embarking on
24		a riverboat designated in paragraph (4) of subsection (e-5) of
25		Section 7 shall be divided equally and remitted monthly,
26		subject to appropriation, to the City of Rockford and Winnebago

SB1739 Engrossed - 426 - LRB098 10559 AMC 40804 b
1		County.
2		The municipality's or county's share shall be collected by
3		the Board on behalf of the State and remitted quarterly by the
4		State, subject to appropriation, to the treasurer of the unit
5		of local government for deposit in the general fund.
6		(c) The licensed owner shall pay the entire admission tax
7		to the Board and the licensed manager or the casino operator
8		licensee shall pay the entire admission fee to the Board. Such
9		payments shall be made daily. Accompanying each payment shall
10		be a return on forms provided by the Board which shall include
11		other information regarding admissions as the Board may
12		require. Failure to submit either the payment or the return
13		within the specified time may result in suspension or
14		revocation of the owners or managers license.
15		(c-5) A tax is imposed on admissions to electronic gaming
16		facilities at the rate of $3 per person admitted by an
17		electronic gaming licensee. The tax is imposed upon the
18		electronic gaming licensee.
19		(1) The admission tax shall be paid for each admission,
20		except that a person who exits an electronic gaming
21		facility and reenters that electronic gaming facility
22		within the same gaming day, as the term "gaming day" is
23		defined by the Board by rule, shall be subject only to the
24		initial admission tax. The Board shall establish, by rule,
25		a procedure to determine whether a person admitted to an
26		electronic gaming facility has paid the admission tax.

SB1739 Engrossed - 427 - LRB098 10559 AMC 40804 b
1		(2) An electronic gaming licensee may issue tax-free
2		passes to actual and necessary officials and employees of
3		the licensee and other persons associated with electronic
4		gaming operations.
5		(3) The number and issuance of tax-free passes is
6		subject to the rules of the Board, and a list of all
7		persons to whom the tax-free passes are issued shall be
8		filed with the Board.
9		(4) The electronic gaming licensee shall pay the entire
10		admission tax to the Board.
11		Such payments shall be made daily. Accompanying each
12		payment shall be a return on forms provided by the Board, which
13		shall include other information regarding admission as the
14		Board may require. Failure to submit either the payment or the
15		return within the specified time may result in suspension or
16		revocation of the electronic gaming license.
17		From the tax imposed under this subsection (c-5), a
18		municipality other than the Village of Stickney or the City of
19		Collinsville in which an electronic gaming facility is located,
20		or if the electronic gaming facility is not located within a
21		municipality, then the county in which the electronic gaming
22		facility is located, except as otherwise provided in this
23		Section, shall receive, subject to appropriation, $1 for each
24		person who enters the electronic gaming facility. For each
25		admission to the electronic gaming facility in excess of
26		1,500,000 in a year, from the tax imposed under this subsection

SB1739 Engrossed - 428 - LRB098 10559 AMC 40804 b
1		(c-5), the county in which the electronic gaming facility is
2		located shall receive, subject to appropriation, $0.30, which
3		shall be in addition to any other moneys paid to the county
4		under this Section.
5		From the tax imposed under this subsection (c-5) on an
6		electronic gaming facility located in the Village of Stickney,
7		$1 for each person who enters the electronic gaming facility
8		shall be distributed as follows, subject to appropriation:
9		$0.24 to the Village of Stickney, $0.49 to the Town of Cicero,
10		$0.05 to the City of Berwyn, and $0.17 to the Stickney Public
11		Health District, and $0.05 to the City of Bridgeview.
12		From the tax imposed under this subsection (c-5) on an
13		electronic gaming facility located in the City of Collinsville,
14		$1 for each person who enters the electronic gaming facility
15		shall be distributed as follows, subject to appropriation:
16		$0.45 to the City of Alton, $0.45 to the City of East St.
17		Louis, and $0.10 to the City of Collinsville.
18		From the tax imposed under this subsection (c-5) on an
19		electronic gaming facility that is located in an unincorporated
20		area of Cook County and has been awarded standardbred racing
21		dates during 2011 by the Illinois Racing Board, $1 for each
22		person who enters the electronic gaming facility shall be
23		divided equally and distributed, subject to appropriation, to
24		the Village of Melrose Park, the Village of Maywood, and Cook
25		County.
26		After payments required under this subsection (c-5) have

SB1739 Engrossed - 429 - LRB098 10559 AMC 40804 b
1		been made, all remaining amounts shall be deposited into the
2		Education Assistance Fund.
3		(d) The Board shall administer and collect the admission
4		tax imposed by this Section, to the extent practicable, in a
5		manner consistent with the provisions of Sections 4, 5, 5a, 5b,
6		5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
7		Retailers' Occupation Tax Act and Section 3-7 of the Uniform
8		Penalty and Interest Act.
9		(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
10		(230 ILCS 10/13) (from Ch. 120, par. 2413)
11		Sec. 13. Wagering tax; rate; distribution.
12		(a) Until January 1, 1998, a tax is imposed on the adjusted
13		gross receipts received from gambling games authorized under
14		this Act at the rate of 20%.
15		(a-1) From January 1, 1998 until July 1, 2002, a privilege
16		tax is imposed on persons engaged in the business of conducting
17		riverboat gambling operations, based on the adjusted gross
18		receipts received by a licensed owner from gambling games
19		authorized under this Act at the following rates:
20		15% of annual adjusted gross receipts up to and
21		including $25,000,000;
22		20% of annual adjusted gross receipts in excess of
23		$25,000,000 but not exceeding $50,000,000;
24		25% of annual adjusted gross receipts in excess of
25		$50,000,000 but not exceeding $75,000,000;

SB1739 Engrossed - 430 - LRB098 10559 AMC 40804 b
1		30% of annual adjusted gross receipts in excess of
2		$75,000,000 but not exceeding $100,000,000;
3		35% of annual adjusted gross receipts in excess of
4		$100,000,000.
5		(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
6		is imposed on persons engaged in the business of conducting
7		riverboat gambling operations, other than licensed managers
8		conducting riverboat gambling operations on behalf of the
9		State, based on the adjusted gross receipts received by a
10		licensed owner from gambling games authorized under this Act at
11		the following rates:
12		15% of annual adjusted gross receipts up to and
13		including $25,000,000;
14		22.5% of annual adjusted gross receipts in excess of
15		$25,000,000 but not exceeding $50,000,000;
16		27.5% of annual adjusted gross receipts in excess of
17		$50,000,000 but not exceeding $75,000,000;
18		32.5% of annual adjusted gross receipts in excess of
19		$75,000,000 but not exceeding $100,000,000;
20		37.5% of annual adjusted gross receipts in excess of
21		$100,000,000 but not exceeding $150,000,000;
22		45% of annual adjusted gross receipts in excess of
23		$150,000,000 but not exceeding $200,000,000;
24		50% of annual adjusted gross receipts in excess of
25		$200,000,000.
26		(a-3) Beginning July 1, 2003, a privilege tax is imposed on

SB1739 Engrossed - 431 - LRB098 10559 AMC 40804 b
1		persons engaged in the business of conducting riverboat
2		gambling operations, other than licensed managers conducting
3		riverboat gambling operations on behalf of the State, based on
4		the adjusted gross receipts received by a licensed owner from
5		gambling games authorized under this Act at the following
6		rates:
7		15% of annual adjusted gross receipts up to and
8		including $25,000,000;
9		27.5% of annual adjusted gross receipts in excess of
10		$25,000,000 but not exceeding $37,500,000;
11		32.5% of annual adjusted gross receipts in excess of
12		$37,500,000 but not exceeding $50,000,000;
13		37.5% of annual adjusted gross receipts in excess of
14		$50,000,000 but not exceeding $75,000,000;
15		45% of annual adjusted gross receipts in excess of
16		$75,000,000 but not exceeding $100,000,000;
17		50% of annual adjusted gross receipts in excess of
18		$100,000,000 but not exceeding $250,000,000;
19		70% of annual adjusted gross receipts in excess of
20		$250,000,000.
21		An amount equal to the amount of wagering taxes collected
22		under this subsection (a-3) that are in addition to the amount
23		of wagering taxes that would have been collected if the
24		wagering tax rates under subsection (a-2) were in effect shall
25		be paid into the Common School Fund.
26		The privilege tax imposed under this subsection (a-3) shall

SB1739 Engrossed - 432 - LRB098 10559 AMC 40804 b
1		no longer be imposed beginning on the earlier of (i) July 1,
2		2005; (ii) the first date after June 20, 2003 that riverboat
3		gambling operations are conducted pursuant to a dormant
4		license; or (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. For the purposes of this subsection
8		(a-3), the term "dormant license" means an owners license that
9		is authorized by this Act under which no riverboat gambling
10		operations are being conducted on June 20, 2003.
11		(a-4) Beginning on the first day on which the tax imposed
12		under subsection (a-3) is no longer imposed and ending upon the
13		imposition of the privilege tax under subsection (a-5) of this
14		Section, a privilege tax is imposed on persons engaged in the
15		business of conducting riverboat or casino gambling or
16		electronic gaming operations, other than licensed managers
17		conducting riverboat gambling operations on behalf of the
18		State, based on the adjusted gross receipts received by a
19		licensed owner from gambling games authorized under this Act at
20		the following rates:
21		15% of annual adjusted gross receipts up to and
22		including $25,000,000;
23		22.5% of annual adjusted gross receipts in excess of
24		$25,000,000 but not exceeding $50,000,000;
25		27.5% of annual adjusted gross receipts in excess of
26		$50,000,000 but not exceeding $75,000,000;

SB1739 Engrossed - 433 - LRB098 10559 AMC 40804 b
1		32.5% of annual adjusted gross receipts in excess of
2		$75,000,000 but not exceeding $100,000,000;
3		37.5% of annual adjusted gross receipts in excess of
4		$100,000,000 but not exceeding $150,000,000;
5		45% of annual adjusted gross receipts in excess of
6		$150,000,000 but not exceeding $200,000,000;
7		50% of annual adjusted gross receipts in excess of
8		$200,000,000.
9		For the imposition of the privilege tax in this subsection
10		(a-4), amounts paid pursuant to item (1) of subsection (b) of
11		Section 56 of the Illinois Horse Racing Act of 1975 shall not
12		be included in the determination of adjusted gross receipts.
13		(a-5) Beginning in the fiscal year following the opening of
14		the casino at which gambling operations are conducted pursuant
15		to the Chicago Casino Development Authority Act, but not before
16		July 1, 2015, a privilege tax is imposed on persons engaged in
17		the business of conducting riverboat or casino gambling or
18		electronic gaming operations, other than licensed managers
19		conducting riverboat gambling operations on behalf of the
20		State, based on the adjusted gross receipts received by such
21		licensee from the gambling games authorized under this Act and
22		the Chicago Casino Development Authority Act. The privilege tax
23		for all gambling games other than table games, including, but
24		not limited to, slot machines, video game of chance gambling,
25		and electronic gambling games shall be at the following rates:
26		10% of annual adjusted gross receipts up to and

SB1739 Engrossed - 434 - LRB098 10559 AMC 40804 b
1		including $25,000,000;
2		17.5% of annual adjusted gross receipts in excess of
3		$25,000,000 but not exceeding $50,000,000;
4		22.5% of annual adjusted gross receipts in excess of
5		$50,000,000 but not exceeding $75,000,000;
6		27.5% of annual adjusted gross receipts in excess of
7		$75,000,000 but not exceeding $100,000,000;
8		32.5% of annual adjusted gross receipts in excess of
9		$100,000,000 but not exceeding $150,000,000;
10		35% of annual adjusted gross receipts in excess of
11		$150,000,000 but not exceeding $200,000,000;
12		40% of annual adjusted gross receipts in excess of
13		$200,000,000 but not exceeding $300,000,000;
14		30% of annual adjusted gross receipts in excess of
15		$300,000,000 but not exceeding $350,000,000;
16		20% of annual adjusted gross receipts in excess of
17		$350,000,000, but not exceeding $800,000,000;
18		50% of annual adjusted gross receipts in excess of
19		$800,000,000.
20		The privilege tax for table games shall be at the following
21		rates:
22		10% of annual adjusted gross receipts up to and
23		including $25,000,000;
24		17.5% of annual adjusted gross receipts in excess of
25		$25,000,000 but not exceeding $50,000,000;
26		22.5% of annual adjusted gross receipts in excess of

SB1739 Engrossed - 435 - LRB098 10559 AMC 40804 b
1		$50,000,000 but not exceeding $70,000,000;
2		16% of annual adjusted gross receipts in excess of
3		$70,000,000.
4		For the imposition of the privilege tax in this subsection
5		(a-5), amounts paid pursuant to item (1) of subsection (b) of
6		Section 56 of the Illinois Horse Racing Act of 1975 shall not
7		be included in the determination of adjusted gross receipts.
8		(a-6) From the effective date of this amendatory Act of the
9		98th General Assembly until June 30, 2017, an owners licensee
10		that conducted gambling operations prior to January 1, 2011
11		shall receive a dollar-for-dollar credit against the tax
12		imposed under this Section for any renovation or construction
13		costs paid by the owners licensee, but in no event shall the
14		credit exceed $2,000,000.
15		Additionally, from the effective date of this amendatory
16		Act of the 98th General Assembly until December 31, 2016, an
17		owners licensee that (i) is located within 15 miles of the
18		Missouri border, and (ii) has at least 3 riverboats, casinos,
19		or their equivalent within a 45-mile radius, may be authorized
20		to relocate to a new location with the approval of both the
21		unit of local government designated as the home dock and the
22		Board, so long as the new location is within the same unit of
23		local government and no more than 3 miles away from its
24		original location. Such owners licensee shall receive a credit
25		against the tax imposed under this Section equal to 8% of the
26		total project costs, as approved by the Board, for any

SB1739 Engrossed - 436 - LRB098 10559 AMC 40804 b
1		renovation or construction costs paid by the owners licensee
2		for the construction of the new facility, provided that the new
3		facility is operational by July 1, 2016. In determining whether
4		or not to approve a relocation, the Board must consider the
5		extent to which the relocation will diminish the gaming
6		revenues received by other Illinois gaming facilities.
7		(a-8) Riverboat gambling operations conducted by a
8		licensed manager on behalf of the State are not subject to the
9		tax imposed under this Section.
10		(a-9) Beginning on January 1, 2014, the calculation of
11		gross receipts or adjusted gross receipts, for the purposes of
12		this Section, for a riverboat, casino, or electronic gaming
13		facility shall not include the dollar amount of non-cashable
14		vouchers, coupons, and electronic promotions redeemed by
15		wagerers upon the riverboat, in the casino, or in the
16		electronic gaming facility up to and including an amount not to
17		exceed 30% of a riverboat casino or electronic gaming
18		facility's adjusted gross receipts.
19		The Illinois Gaming Board shall submit to the General
20		Assembly a comprehensive report no later than March 31, 2017
21		detailing, at a minimum, the effect of removing non-cashable
22		vouchers, coupons, and electronic promotions from this
23		calculation on net gaming revenues to the State in calendar
24		years 2014 through 2016, the increase or reduction in wagerers
25		as a result of removing non-cashable vouchers, coupons, and
26		electronic promotions from this calculation, the effect of the

SB1739 Engrossed - 437 - LRB098 10559 AMC 40804 b
1		tax rates in subsection (a-5) on net gaming revenues to the
2		State, and proposed modifications to the calculation.
3		(a-10) The taxes imposed by this Section shall be paid by
4		the licensed owner or the electronic gaming licensee to the
5		Board not later than 5:00 o'clock p.m. of the day after the day
6		when the wagers were made.
7		(a-15) If the privilege tax imposed under subsection (a-3)
8		is no longer imposed pursuant to item (i) of the last paragraph
9		of subsection (a-3), then by June 15 of each year, each owners
10		licensee, other than an owners licensee that admitted 1,000,000
11		persons or fewer in calendar year 2004, must, in addition to
12		the payment of all amounts otherwise due under this Section,
13		pay to the Board a reconciliation payment in the amount, if
14		any, by which the licensed owner's base amount exceeds the
15		amount of net privilege tax paid by the licensed owner to the
16		Board in the then current State fiscal year. A licensed owner's
17		net privilege tax obligation due for the balance of the State
18		fiscal year shall be reduced up to the total of the amount paid
19		by the licensed owner in its June 15 reconciliation payment.
20		The obligation imposed by this subsection (a-15) is binding on
21		any person, firm, corporation, or other entity that acquires an
22		ownership interest in any such owners license. The obligation
23		imposed under this subsection (a-15) terminates on the earliest
24		of: (i) July 1, 2007, (ii) the first day after the effective
25		date of this amendatory Act of the 94th General Assembly that
26		riverboat gambling operations are conducted pursuant to a

SB1739 Engrossed - 438 - LRB098 10559 AMC 40804 b
1		dormant license, (iii) the first day that riverboat gambling
2		operations are conducted under the authority of an owners
3		license that is in addition to the 10 owners licenses initially
4		authorized under this Act, or (iv) the first day that a
5		licensee under the Illinois Horse Racing Act of 1975 conducts
6		gaming operations with slot machines or other electronic gaming
7		devices. The Board must reduce the obligation imposed under
8		this subsection (a-15) by an amount the Board deems reasonable
9		for any of the following reasons: (A) an act or acts of God,
10		(B) an act of bioterrorism or terrorism or a bioterrorism or
11		terrorism threat that was investigated by a law enforcement
12		agency, or (C) a condition beyond the control of the owners
13		licensee that does not result from any act or omission by the
14		owners licensee or any of its agents and that poses a hazardous
15		threat to the health and safety of patrons. If an owners
16		licensee pays an amount in excess of its liability under this
17		Section, the Board shall apply the overpayment to future
18		payments required under this Section.
19		For purposes of this subsection (a-15):
20		"Act of God" means an incident caused by the operation of
21		an extraordinary force that cannot be foreseen, that cannot be
22		avoided by the exercise of due care, and for which no person
23		can be held liable.
24		"Base amount" means the following:
25		For a riverboat in Alton, $31,000,000.
26		For a riverboat in East Peoria, $43,000,000.

SB1739 Engrossed - 439 - LRB098 10559 AMC 40804 b
1		For the Empress riverboat in Joliet, $86,000,000.
2		For a riverboat in Metropolis, $45,000,000.
3		For the Harrah's riverboat in Joliet, $114,000,000.
4		For a riverboat in Aurora, $86,000,000.
5		For a riverboat in East St. Louis, $48,500,000.
6		For a riverboat in Elgin, $198,000,000.
7		"Dormant license" has the meaning ascribed to it in
8		subsection (a-3).
9		"Net privilege tax" means all privilege taxes paid by a
10		licensed owner to the Board under this Section, less all
11		payments made from the State Gaming Fund pursuant to subsection
12		(b) of this Section.
13		The changes made to this subsection (a-15) by Public Act
14		94-839 are intended to restate and clarify the intent of Public
15		Act 94-673 with respect to the amount of the payments required
16		to be made under this subsection by an owners licensee to the
17		Board.
18		(b) Until January 1, 1998, 25% of the tax revenue deposited
19		in the State Gaming Fund under this Section shall be paid,
20		subject to appropriation by the General Assembly, to the unit
21		of local government which is designated as the home dock of the
22		riverboat. Beginning January 1, 1998, from the tax revenue from
23		riverboat or casino gambling deposited in the State Gaming Fund
24		under this Section, an amount equal to 5% of adjusted gross
25		receipts generated by a riverboat or a casino other than a
26		riverboat designated in paragraph (3) or (4) of subsection

SB1739 Engrossed - 440 - LRB098 10559 AMC 40804 b
1		(e-5) of Section 7, shall be paid monthly, subject to
2		appropriation by the General Assembly, to the unit of local
3		government in which the casino is located or that is designated
4		as the home dock of the riverboat. From the tax revenue
5		deposited in the State Gaming Fund pursuant to riverboat or
6		casino gambling operations conducted by a licensed manager on
7		behalf of the State, an amount equal to 5% of adjusted gross
8		receipts generated pursuant to those riverboat or casino
9		gambling operations shall be paid monthly, subject to
10		appropriation by the General Assembly, to the unit of local
11		government that is designated as the home dock of the riverboat
12		upon which those riverboat gambling operations are conducted or
13		in which the casino is located. From the tax revenue from
14		riverboat or casino gambling deposited in the State Gaming Fund
15		under this Section, an amount equal to 5% of the adjusted gross
16		receipts generated by a riverboat designated in paragraph (3)
17		of subsection (e-5) of Section 7 shall be divided and remitted
18		monthly, subject to appropriation, as follows: 50% to Waukegan,
19		25% to Park City, and 25% to North Chicago. From the tax
20		revenue from riverboat or casino gambling deposited in the
21		State Gaming Fund under this Section, an amount equal to 5% of
22		the adjusted gross receipts generated by a riverboat designated
23		in paragraph (4) of subsection (e-5) of Section 7 shall be
24		divided equally and remitted monthly, subject to
25		appropriation, to the City of Rockford and Winnebago County.
26		Units of local government may refund any portion of the payment

SB1739 Engrossed - 441 - LRB098 10559 AMC 40804 b
1		that they receive pursuant to this subsection (b) to the
2		riverboat or casino.
3		(b-5) Beginning on the effective date of this amendatory
4		Act of the 98th General Assembly, from the tax revenue
5		deposited in the State Gaming Fund under this Section, an
6		amount equal to 3% of adjusted gross receipts generated by each
7		electronic gaming facility located outside Madison County
8		shall be paid monthly, subject to appropriation by the General
9		Assembly, to a municipality other than the Village of Stickney
10		in which each electronic gaming facility is located or, if the
11		electronic gaming facility is not located within a
12		municipality, to the county in which the electronic gaming
13		facility is located, except as otherwise provided in this
14		Section. From the tax revenue deposited in the State Gaming
15		Fund under this Section, an amount equal to 3% of adjusted
16		gross receipts generated by each electronic gaming facility
17		that is located in an unincorporated area of Cook County and
18		has been awarded standardbred racing dates during 2011 by the
19		Illinois Racing Board shall be divided equally and distributed,
20		subject to appropriation, to the Village of Melrose Park, the
21		Village of Maywood, and Cook County. From the tax revenue
22		deposited in the State Gaming Fund under this Section, an
23		amount equal to 3% of adjusted gross receipts generated by an
24		electronic gaming facility located in the Village of Stickney
25		shall be paid monthly, subject to appropriation by the General
26		Assembly, as follows: 25% to the Village of Stickney, 5% to the

SB1739 Engrossed - 442 - LRB098 10559 AMC 40804 b
1		City of Berwyn, 50% to the Town of Cicero, and 20% to the
2		Stickney Public Health District.
3		From the tax revenue deposited in the State Gaming Fund
4		under this Section, an amount equal to 5% of adjusted gross
5		receipts generated by an electronic gaming facility located in
6		the City of Collinsville shall be paid monthly, subject to
7		appropriation by the General Assembly, as follows: 45% to the
8		City of Alton, 45% to the City of East St. Louis, and 10% to the
9		City of Collinsville.
10		Municipalities and counties may refund any portion of the
11		payment that they receive pursuant to this subsection (b-5) to
12		the electronic gaming facility.
13		(b-6) Beginning on the effective date of this amendatory
14		Act of the 98th General Assembly, from the tax revenue
15		deposited in the State Gaming Fund under this Section, an
16		amount equal to 2% of adjusted gross receipts generated by an
17		electronic gaming facility located outside Madison County
18		shall be paid monthly, subject to appropriation by the General
19		Assembly, to the county in which the electronic gaming facility
20		is located for the purposes of its criminal justice system or
21		health care system.
22		Counties may refund any portion of the payment that they
23		receive pursuant to this subsection (b-6) to the electronic
24		gaming facility.
25		(b-7) Beginning on the effective date of this amendatory
26		Act of the 98th General Assembly, from the tax revenue

SB1739 Engrossed - 443 - LRB098 10559 AMC 40804 b
1		deposited in the State Gaming Fund under this Section,
2		$5,000,000 shall be paid annually, subject to appropriation, to
3		the Department of Human Services for the administration of
4		programs to treat problem gambling.
5		(b-8) Beginning in the fiscal year following the opening of
6		the casino at which gambling operations are conducted pursuant
7		to the Chicago Casino Development Authority Act, but not before
8		July 1, 2015, from the tax revenue deposited in the State
9		Gaming Fund under this Section, $5,000,000 shall be transferred
10		into the State Fairgrounds Capital Improvements Fund annually.
11		(b-9) Beginning in the fiscal year following the opening of
12		the casino at which gambling operations are conducted pursuant
13		to the Chicago Casino Development Authority Act, but not before
14		July 1, 2015, from the tax revenue deposited in the State
15		Gaming Fund under this Section, an amount equal to 5% of the
16		wagering taxes paid by the riverboats and casino created
17		pursuant to subsection (e-5) of Section 7 shall be transferred
18		into the Depressed Communities Economic Development Fund
19		annually.
20		(b-10) Beginning in the fiscal year following the opening
21		of the casino at which gambling operations are conducted
22		pursuant to the Chicago Casino Development Authority Act, but
23		not before July 1, 2015, from the tax revenue deposited in the
24		State Gaming Fund under this Section, an amount equal to 2.5%
25		of the wagering taxes paid by the riverboats and casino created
26		pursuant to subsection (e-5) of Section 7 shall be transferred

SB1739 Engrossed - 444 - LRB098 10559 AMC 40804 b
1		into the Latino Community Economic Development Fund annually.
2		(b-11) The State and County Fair Assistance Fund is created
3		as a special fund in the State treasury. The Fund shall be
4		administered by the Department of Agriculture. Beginning in the
5		fiscal year following the opening of the casino at which
6		gambling operations are conducted pursuant to the Chicago
7		Casino Development Authority Act, but not before July 1, 2015,
8		from the tax revenue deposited in the State Gaming Fund under
9		this Section, an amount equal to 1% of adjusted gross receipts,
10		not to exceed $3,000,000, shall be transferred into the State
11		and County Fair Assistance Fund annually. No moneys shall be
12		expended from the State and County Fair Assistance Fund except
13		as appropriated by the General Assembly. Deposits made pursuant
14		to this subsection (b-11) shall supplement, and not supplant,
15		other State funding for these purposes.
16		The Department of Agriculture shall award grants from the
17		moneys appropriated from the State and County Fair Assistance
18		Fund for the development, expansion, or support of county fairs
19		that showcase Illinois agriculture products or byproducts. No
20		grant may exceed $100,000, except for an annual grant of
21		$1,000,000 that shall be made to the Illinois Standardbred
22		Breeders Fund and used for Illinois-bred harness racing purses
23		and the Illinois State Fair race track. Not more than one grant
24		under this Section may be made to any one county fair board.
25		Additionally, grants under this subsection (b-11) shall be
26		available to the Illinois State Fair and the DuQuoin State

SB1739 Engrossed - 445 - LRB098 10559 AMC 40804 b
1		Fair.
2		(b-12) Beginning in the fiscal year following the opening
3		of the casino at which gambling operations are conducted
4		pursuant to the Chicago Casino Development Authority Act, but
5		not before July 1, 2015, from the tax revenue from electronic
6		gaming deposited in the State Gaming Fund under this Section,
7		(i) $6,250,000 shall be transferred annually into the Partners
8		for Conservation Fund for grants to soil and water conservation
9		districts and (ii) $2,500,000 shall be transferred annually
10		into the State Cooperative Service Trust Fund for grants to the
11		State's cooperative extensions. Transfers made pursuant to
12		this subsection (b-12) shall supplement, and not supplant,
13		other State funding for these purposes.
14		(b-13) Beginning in the fiscal year following the opening
15		of the casino at which gambling operations are conducted
16		pursuant to the Chicago Casino Development Authority Act, but
17		not before July 1, 2015, from the tax revenue deposited in the
18		State Gaming Fund under this Section, $75,000 shall be paid
19		annually, subject to appropriation, to a county forest preserve
20		district for the maintenance of a botanic garden that was
21		created by Section 43 of the Cook County Forest Preserve
22		District Act.
23		(b-14) Beginning in the fiscal year following the opening
24		of the casino at which gambling operations are conducted
25		pursuant to the Chicago Casino Development Authority Act, but
26		not before July 1, 2015, from the tax revenue deposited in the

SB1739 Engrossed - 446 - LRB098 10559 AMC 40804 b
1		State Gaming Fund under this Section, $125,000 shall be
2		transferred annually into the Illinois Racing Quarter Horse
3		Breeders Fund.
4		(b-15) From January 1, 2015 until December 31, 2017, if the
5		total amount paid to the Education Assistance Fund annually
6		pursuant to this Act will result in the Education Assistance
7		Fund receiving less revenue from the State Gaming Fund than it
8		received in calendar year 2011, an amount equal to that
9		shortfall shall be transferred from the Capital Projects Fund
10		to the Education Assistance Fund, except that no such transfer
11		shall exceed the amount deposited into the Capital Projects
12		Fund pursuant to subsection (c-4) of this Section.
13		(c) Appropriations, as approved by the General Assembly,
14		may be made from the State Gaming Fund to the Board (i) for the
15		administration and enforcement of this Act, the Chicago Casino
16		Development Authority Act, and the Video Gaming Act, (ii) for
17		distribution to the Department of State Police and to the
18		Department of Revenue for the enforcement of this Act, the
19		Chicago Casino Development Authority Act, and the Video Gaming
20		Act, and (iii) to the Department of Human Services for the
21		administration of programs to treat problem gambling. The
22		Board's annual appropriations request must separately state
23		its funding needs for the regulation of electronic gaming,
24		riverboat gaming, casino gaming within the City of Chicago, and
25		video gaming. From the tax revenue deposited in the Gaming
26		Facilities Fee Revenue Fund, the first $50,000,000 shall be

SB1739 Engrossed - 447 - LRB098 10559 AMC 40804 b
1		paid to the Board, subject to appropriation, for the
2		administration and enforcement of the provisions of this
3		amendatory Act of the 98th General Assembly.
4		(c-3) Appropriations, as approved by the General Assembly,
5		may be made from the tax revenue deposited into the State
6		Gaming Fund from electronic gaming pursuant to this Section for
7		the administration and enforcement of this Act.
8		(c-4) After payments required under subsection (b-5), (c),
9		and (c-3) have been made from the tax revenue from electronic
10		gaming deposited into the State Gaming Fund under this Section,
11		all remaining amounts from electronic gaming shall be deposited
12		into the Education Assistance Fund.
13		(c-5) Before May 26, 2006 (the effective date of Public Act
14		94-804) and beginning on the effective date of this amendatory
15		Act of the 95th General Assembly, unless any organization
16		licensee under the Illinois Horse Racing Act of 1975 begins to
17		operate a slot machine or video game of chance under the
18		Illinois Horse Racing Act of 1975 or this Act, after the
19		payments required under subsections (b) and (c) have been made,
20		an amount equal to 15% of the adjusted gross receipts of (1) an
21		owners licensee that relocates pursuant to Section 11.2, (2) an
22		owners licensee conducting riverboat gambling operations
23		pursuant to an owners license that is initially issued after
24		June 25, 1999, or (3) the first riverboat gambling operations
25		conducted by a licensed manager on behalf of the State under
26		Section 7.3, whichever comes first, shall be paid from the

SB1739 Engrossed - 448 - LRB098 10559 AMC 40804 b
1		State Gaming Fund into the Horse Racing Equity Fund.
2		(c-10) Each year the General Assembly shall appropriate
3		from the General Revenue Fund to the Education Assistance Fund
4		an amount equal to the amount paid into the Horse Racing Equity
5		Fund pursuant to subsection (c-5) in the prior calendar year.
6		(c-15) After the payments required under subsections (b),
7		(c), and (c-5) have been made, an amount equal to 2% of the
8		adjusted gross receipts of (1) an owners licensee that
9		relocates pursuant to Section 11.2, (2) an owners licensee
10		conducting riverboat gambling operations pursuant to an owners
11		license that is initially issued after June 25, 1999, or (3)
12		the first riverboat gambling operations conducted by a licensed
13		manager on behalf of the State under Section 7.3, whichever
14		comes first, shall be paid, subject to appropriation from the
15		General Assembly, from the State Gaming Fund to each home rule
16		county with a population of over 3,000,000 inhabitants for the
17		purpose of enhancing the county's 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) have been made, an amount equal to 2% of
25		the adjusted gross receipts of (1) an owners licensee that
26		relocates pursuant to Section 11.2, (2) an owners licensee

SB1739 Engrossed - 449 - LRB098 10559 AMC 40804 b
1		conducting riverboat gambling operations pursuant to an owners
2		license that is initially issued after June 25, 1999, or (3)
3		the first riverboat gambling operations conducted by a licensed
4		manager on behalf of the State under Section 7.3, whichever
5		comes first, shall be paid from the State Gaming Fund to
6		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 10/14) (from Ch. 120, par. 2414)
25		Sec. 14. Licensees - Records - Reports - Supervision.

SB1739 Engrossed - 450 - LRB098 10559 AMC 40804 b
1		(a) Licensed owners and electronic gaming licensees A
2		licensed owner shall keep his books and records so as to
3		clearly show the following:
4		(1) The amount received daily from admission fees.
5		(2) The total amount of gross receipts.
6		(3) The total amount of the adjusted gross receipts.
7		(b) Licensed owners and electronic gaming licensees The
8		licensed owner shall furnish to the Board reports and
9		information as the Board may require with respect to its
10		activities on forms designed and supplied for such purpose by
11		the Board.
12		(c) The books and records kept by a licensed owner as
13		provided by this Section are public records and the
14		examination, publication, and dissemination of the books and
15		records are governed by the provisions of The Freedom of
16		Information Act.
17		(Source: P.A. 86-1029.)
18		(230 ILCS 10/15) (from Ch. 120, par. 2415)
19		Sec. 15. Audit of Licensee Operations. Annually, the
20		licensed owner, or manager, or electronic gaming licensee shall
21		transmit to the Board an audit of the financial transactions
22		and condition of the licensee's or manager's total operations.
23		Additionally, within 90 days after the end of each quarter of
24		each fiscal year, the licensed owner, or manager, or electronic
25		gaming licensee shall transmit to the Board a compliance report

SB1739 Engrossed - 451 - LRB098 10559 AMC 40804 b
1		on engagement procedures determined by the Board. All audits
2		and compliance engagements shall be conducted by certified
3		public accountants selected by the Board. Each certified public
4		accountant must be registered in the State of Illinois under
5		the Illinois Public Accounting Act. The compensation for each
6		certified public accountant shall be paid directly by the
7		licensed owner, or manager, or electronic gaming licensee to
8		the certified public accountant.
9		(Source: P.A. 96-1392, eff. 1-1-11.)
10		(230 ILCS 10/16) (from Ch. 120, par. 2416)
11		Sec. 16. Annual Report of Board. The Board shall make an
12		annual report to the Governor, for the period ending December
13		31 of each year. Included in the report shall be an account of
14		the Board actions, its financial position and results of
15		operation under this Act and the Chicago Casino Development
16		Authority Act, the practical results attained under this Act
17		and the Chicago Casino Development Authority Act and any
18		recommendations for legislation which the Board deems
19		advisable.
20		(Source: P.A. 86-1029.)
21		(230 ILCS 10/17) (from Ch. 120, par. 2417)
22		Sec. 17. Administrative Procedures. The Illinois
23		Administrative Procedure Act shall apply to all administrative
24		rules and procedures of the Board under this Act, the Chicago

SB1739 Engrossed - 452 - LRB098 10559 AMC 40804 b
1		Casino Development Authority Act, and or the Video Gaming Act,
2		except that: (1) subsection (b) of Section 5-10 of the Illinois
3		Administrative Procedure Act does not apply to final orders,
4		decisions and opinions of the Board; (2) subsection (a) of
5		Section 5-10 of the Illinois Administrative Procedure Act does
6		not apply to forms established by the Board for use under this
7		Act, the Chicago Casino Development Authority Act, and or the
8		Video Gaming Act; (3) the provisions of Section 10-45 of the
9		Illinois Administrative Procedure Act regarding proposals for
10		decision are excluded under this Act, the Chicago Casino
11		Development Authority Act, and or the Video Gaming Act; and (4)
12		the provisions of subsection (d) of Section 10-65 of the
13		Illinois Administrative Procedure Act do not apply so as to
14		prevent summary suspension of any license pending revocation or
15		other action, which suspension shall remain in effect unless
16		modified by the Board or unless the Board's decision is
17		reversed on the merits upon judicial review.
18		(Source: P.A. 96-34, eff. 7-13-09.)
19		(230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
20		Sec. 17.1. Judicial Review.
21		(a) Jurisdiction and venue for the judicial review of a
22		final order of the Board relating to licensed owners,
23		suppliers, electronic gaming licensees, and or special event
24		licenses is vested in the Appellate Court of the judicial
25		district in which Sangamon County is located. A petition for

SB1739 Engrossed - 453 - LRB098 10559 AMC 40804 b
1		judicial review of a final order of the Board must be filed in
2		the Appellate Court, within 35 days from the date that a copy
3		of the decision sought to be reviewed was served upon the party
4		affected by the decision.
5		(b) Judicial review of all other final orders of the Board
6		shall be conducted in accordance with the Administrative Review
7		Law.
8		(Source: P.A. 88-1.)
9		(230 ILCS 10/18) (from Ch. 120, par. 2418)
10		Sec. 18. Prohibited Activities - Penalty.
11		(a) A person is guilty of a Class A misdemeanor for doing
12		any of the following:
13		(1) Conducting gambling where wagering is used or to be
14		used without a license issued by the Board.
15		(2) Conducting gambling where wagering is permitted
16		other than in the manner specified by Section 11.
17		(b) A person is guilty of a Class B misdemeanor for doing
18		any of the following:
19		(1) permitting a person under 21 years to make a wager;
20		or
21		(2) violating paragraph (12) of subsection (a) of
22		Section 11 of this Act.
23		(c) A person wagering or accepting a wager at any location
24		outside the riverboat, casino, or electronic gaming facility in
25		violation of paragraph is subject to the penalties in

SB1739 Engrossed - 454 - LRB098 10559 AMC 40804 b
1		paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
2		Criminal Code of 2012 is subject to the penalties provided in
3		that Section.
4		(d) A person commits a Class 4 felony and, in addition,
5		shall be barred for life from gambling operations riverboats
6		under the jurisdiction of the Board, if the person does any of
7		the following:
8		(1) Offers, promises, or gives anything of value or
9		benefit to a person who is connected with a riverboat or
10		casino owner or electronic gaming licensee, including, but
11		not limited to, an officer or employee of a licensed owner,
12		electronic gaming licensee, or holder of an occupational
13		license pursuant to an agreement or arrangement or with the
14		intent that the promise or thing of value or benefit will
15		influence the actions of the person to whom the offer,
16		promise, or gift was made in order to affect or attempt to
17		affect the outcome of a gambling game, or to influence
18		official action of a member of the Board.
19		(2) Solicits or knowingly accepts or receives a promise
20		of anything of value or benefit while the person is
21		connected with a riverboat, casino, or electronic gaming
22		facility, including, but not limited to, an officer or
23		employee of a licensed owner or electronic gaming licensee,
24		or the holder of an occupational license, pursuant to an
25		understanding or arrangement or with the intent that the
26		promise or thing of value or benefit will influence the

SB1739 Engrossed - 455 - LRB098 10559 AMC 40804 b
1		actions of the person to affect or attempt to affect the
2		outcome of a gambling game, or to influence official action
3		of a member of the Board.
4		(3) Uses or possesses with the intent to use a device
5		to assist:
6		(i) In projecting the outcome of the game.
7		(ii) In keeping track of the cards played.
8		(iii) In analyzing the probability of the
9		occurrence of an event relating to the gambling game.
10		(iv) In analyzing the strategy for playing or
11		betting to be used in the game except as permitted by
12		the Board.
13		(4) Cheats at a gambling game.
14		(5) Manufactures, sells, or distributes any cards,
15		chips, dice, game or device which is intended to be used to
16		violate any provision of this Act or the Chicago Casino
17		Development Authority Act.
18		(6) Alters or misrepresents the outcome of a gambling
19		game on which wagers have been made after the outcome is
20		made sure but before it is revealed to the players.
21		(7) Places a bet after acquiring knowledge, not
22		available to all players, of the outcome of the gambling
23		game which is subject of the bet or to aid a person in
24		acquiring the knowledge for the purpose of placing a bet
25		contingent on that outcome.
26		(8) Claims, collects, or takes, or attempts to claim,

SB1739 Engrossed - 456 - LRB098 10559 AMC 40804 b
1		collect, or take, money or anything of value in or from the
2		gambling games, with intent to defraud, without having made
3		a wager contingent on winning a gambling game, or claims,
4		collects, or takes an amount of money or thing of value of
5		greater value than the amount won.
6		(9) Uses counterfeit chips or tokens in a gambling
7		game.
8		(10) Possesses any key or device designed for the
9		purpose of opening, entering, or affecting the operation of
10		a gambling game, drop box, or an electronic or mechanical
11		device connected with the gambling game or for removing
12		coins, tokens, chips or other contents of a gambling game.
13		This paragraph (10) does not apply to a gambling licensee
14		or employee of a gambling licensee acting in furtherance of
15		the employee's employment.
16		(e) The possession of more than one of the devices
17		described in subsection (d), paragraphs (3), (5), or (10)
18		permits a rebuttable presumption that the possessor intended to
19		use the devices for cheating.
20		(f) A person under the age of 21 who, except as authorized
21		under paragraph (10) of Section 11, enters upon a riverboat or
22		in a casino or electronic gaming facility commits a petty
23		offense and is subject to a fine of not less than $100 or more
24		than $250 for a first offense and of not less than $200 or more
25		than $500 for a second or subsequent offense.
26		An action to prosecute any crime occurring on a riverboat

SB1739 Engrossed - 457 - LRB098 10559 AMC 40804 b
1		shall be tried in the county of the dock at which the riverboat
2		is based. An action to prosecute any crime occurring in a
3		casino or electronic gaming facility shall be tried in the
4		county in which the casino or electronic gaming facility is
5		located.
6		(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
7		(230 ILCS 10/18.1)
8		Sec. 18.1. Distribution of certain fines. If a fine is
9		imposed on an owner licensee or an electronic gaming licensee
10		for knowingly sending marketing or promotional materials to any
11		person placed on the self-exclusion list, then the Board shall
12		distribute an amount equal to 15% of the fine imposed to the
13		unit of local government in which the casino, riverboat, or
14		electronic gaming facility is located for the purpose of
15		awarding grants to non-profit entities that assist gambling
16		addicts.
17		(Source: P.A. 96-224, eff. 8-11-09.)
18		(230 ILCS 10/18.2 new)
19		Sec. 18.2. Prohibition on political contributions from
20		certain licensees and applicants.
21		(a) The General Assembly has a compelling interest in
22		protecting the integrity of both the electoral process and the
23		legislative process by preventing corruption and the
24		appearance of corruption which may arise through permitting

SB1739 Engrossed - 458 - LRB098 10559 AMC 40804 b
1		certain political campaign contributions by certain persons
2		involved in the gaming industry and regulated by the State.
3		Unlike most other regulated industries, gaming is especially
4		susceptible to corruption and potential criminal influence.
5		In Illinois, only licensed gaming activities are legal and
6		all other gaming activities are strictly prohibited. Given
7		these circumstances, it is imperative to eliminate any
8		potential corrupt influence in the gaming industry and the
9		electoral process. Banning political campaign contributions by
10		certain persons subject to this Section to State officeholders
11		and candidates for such offices and to county and municipal
12		officeholders and candidates for such offices in counties and
13		municipalities that receive financial benefits from gaming
14		activities is necessary to prevent corruption and the
15		appearance of corruption that may arise when political campaign
16		contributions and gaming that is regulated by the State and
17		that confers benefits on counties and municipalities are
18		intermingled.
19		The General Assembly has prohibited political campaign
20		contributions to certain State and local officeholders and
21		candidates for such offices by certain persons with State of
22		Illinois and Metropolitan Pier and Exposition Authority
23		contracts and pending bids or proposals for contracts of over
24		$50,000 and certain individuals and entities affiliated with
25		such persons. Certain gaming licensees will receive receipts
26		far in excess of the base level of contract amounts subject to

SB1739 Engrossed - 459 - LRB098 10559 AMC 40804 b
1		such other campaign contribution prohibitions.
2		(b) As used in this Section:
3		"Affiliated entity" means (i) any corporate parent and each
4		operating subsidiary of the business entity applying for or
5		holding a license, (ii) each operating subsidiary of the
6		corporate parent of the business entity applying for or holding
7		a license, (iii) any organization recognized by the United
8		States Internal Revenue Service as a tax-exempt organization
9		described in Section 501(c) of the Internal Revenue Code of
10		1986 (or any successor provision of federal tax law)
11		established by one or more business entities seeking or holding
12		a license, any affiliated entity of such business entity, or
13		any affiliated person of such business entity, and (iv) any
14		political committee for which the business entity applying for
15		or holding a license, or any 501(c) organization described in
16		item (iii) related to that business entity, is the sponsoring
17		entity, as defined in Section 9-3 of the Election Code. For
18		purposes of item (iv), the funding of all business entities
19		applying for or holding a license shall be aggregated in
20		determining whether such political committee is an affiliated
21		entity.
22		"Affiliated person" means (i) any person with any ownership
23		interest or distributive share in excess of 7.5% of any
24		business entity applying for or holding a license, (ii)
25		executive employees of any such business entity, (iii) any
26		person designated as a key person under this Act, and (iv) the

SB1739 Engrossed - 460 - LRB098 10559 AMC 40804 b
1		spouse of such persons.
2		"Contribution" means a contribution as defined in Section
3		9-1.4 of the Election Code.
4		"Declared candidate" means a person who has filed a
5		statement of candidacy and petition for nomination or election
6		in the principal office of the State Board of Elections, or in
7		the office of the appropriate election authority for any county
8		or municipality in which a casino or electronic gaming device
9		is located or proposed or which receives any gaming revenue.
10		"Executive employee" means any person who is (i) 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 owner, electronic gaming, or manager
17		license issued pursuant to this Act.
18		"Officeholder" means the Governor, Lieutenant Governor,
19		Attorney General, Secretary of State, Comptroller, Treasurer,
20		member of the General Assembly, or any officeholder in any
21		county or municipality in which a riverboat, casino, or
22		electronic gaming device is located or proposed or which
23		receives any gaming revenue.
24		"Business entity" means any entity doing business for
25		profit, whether organized as a corporation, partnership, sole
26		proprietorship, limited liability company, or partnership or

SB1739 Engrossed - 461 - LRB098 10559 AMC 40804 b
1		otherwise.
2		(c) Any person or business entity applying for or holding a
3		license, any affiliated entities or persons of such business
4		entity, and any entities or persons soliciting a contribution
5		or causing a contribution to be made on behalf of such person
6		or business entity, are prohibited from making any contribution
7		to any officeholder or declared candidate or any political
8		committee affiliated with any officeholder or declared
9		candidate, as defined in Section 9-1.8 of the Election Code.
10		This prohibition shall commence upon filing of an application
11		for a license and shall continue for a period of 2 years after
12		termination, suspension, or revocation of the license.
13		The Board shall have authority to suspend, revoke, or
14		restrict the license and to impose civil penalties of up to
15		$100,000 for each violation of this subsection (c). A notice of
16		each such violation and the penalty imposed shall be published
17		on the Board's website and in the Illinois Register. Payments
18		received by the State pursuant to this subsection (c) shall be
19		deposited into the General Revenue Fund.
20		Any officeholder or declared candidate or any political
21		committee affiliated with any officeholder or declared
22		candidate that has received a contribution in violation of this
23		subsection (c) shall pay an amount equal to the value of the
24		contribution to the State no more than 30 days after notice of
25		the violation concerning the contribution appears in the
26		Illinois Register. Payments received by the State pursuant to

SB1739 Engrossed - 462 - LRB098 10559 AMC 40804 b
1		this subsection (c) shall be deposited into the General Revenue
2		Fund.
3		(d) The Board shall post on its website a list of all
4		persons, business entities, and affiliated entities prohibited
5		from making contributions to any officeholder or declared
6		candidate political committee pursuant to subsection (c),
7		which list shall be updated and published on, at a minimum, a
8		semiannual basis.
9		Any person, business entity, or affiliated entity
10		prohibited from making contributions to any officeholder or
11		declared candidate political committee pursuant to subsection
12		(c) shall notify the Board within 7 days after discovering any
13		necessary change or addition to the information relating to
14		that person, business entity, or affiliated entity contained in
15		the list.
16		An individual who acts in good faith and in reliance on any
17		information contained in the list shall not be subject to any
18		penalties or liability imposed for a violation of this Section.
19		(e) If any provision of this Section is held invalid or its
20		application to any person or circumstance is held invalid, the
21		invalidity of that provision or application does not affect the
22		other provisions or applications of this Section that can be
23		given effect without the invalid application or provision.
24		(230 ILCS 10/19) (from Ch. 120, par. 2419)
25		Sec. 19. Forfeiture of property.

SB1739 Engrossed - 463 - LRB098 10559 AMC 40804 b
1		(a) Except as provided in subsection (b), any riverboat,
2		casino, or electronic gaming facility used for the conduct of
3		gambling games in violation of this Act shall be considered a
4		gambling place in violation of Section 28-3 of the Criminal
5		Code of 2012. Every gambling device found on a riverboat, in a
6		casino, or at an electronic gaming facility operating gambling
7		games in violation of this Act and every slot machine and video
8		game of chance found at an electronic gaming facility operating
9		gambling games in violation of this Act or the Chicago Casino
10		Development Authority Act shall be subject to seizure,
11		confiscation and destruction as provided in Section 28-5 of the
12		Criminal Code of 2012.
13		(b) It is not a violation of this Act for a riverboat or
14		other watercraft which is licensed for gaming by a contiguous
15		state to dock on the shores of this State if the municipality
16		having jurisdiction of the shores, or the county in the case of
17		unincorporated areas, has granted permission for docking and no
18		gaming is conducted on the riverboat or other watercraft while
19		it is docked on the shores of this State. No gambling device
20		shall be subject to seizure, confiscation or destruction if the
21		gambling device is located on a riverboat or other watercraft
22		which is licensed for gaming by a contiguous state and which is
23		docked on the shores of this State if the municipality having
24		jurisdiction of the shores, or the county in the case of
25		unincorporated areas, has granted permission for docking and no
26		gaming is conducted on the riverboat or other watercraft while

SB1739 Engrossed - 464 - LRB098 10559 AMC 40804 b
1		it is docked on the shores of this State.
2		(Source: P.A. 97-1150, eff. 1-25-13.)
3		(230 ILCS 10/20) (from Ch. 120, par. 2420)
4		Sec. 20. Prohibited activities - civil penalties. Any
5		person who conducts a gambling operation without first
6		obtaining a license to do so, or who continues to conduct such
7		games after revocation of his license, or any licensee who
8		conducts or allows to be conducted any unauthorized gambling
9		games on a riverboat, in a casino, or at an electronic gaming
10		facility where it is authorized to conduct its riverboat
11		gambling operation, in addition to other penalties provided,
12		shall be subject to a civil penalty equal to the amount of
13		gross receipts derived from wagering on the gambling games,
14		whether unauthorized or authorized, conducted on that day as
15		well as confiscation and forfeiture of all gambling game
16		equipment used in the conduct of unauthorized gambling games.
17		(Source: P.A. 86-1029.)
18		(230 ILCS 10/21) (from Ch. 120, par. 2421)
19		Sec. 21. Limitation on taxation of licensees. Licensees
20		shall not be subjected to any excise tax, license tax, permit
21		tax, privilege tax, occupation tax or excursion tax which is
22		imposed exclusively upon the licensee by the State or any
23		political subdivision thereof, except as provided in this Act
24		or the Chicago Casino Development Authority Act.

SB1739 Engrossed - 465 - LRB098 10559 AMC 40804 b
1		(Source: P.A. 86-1029.)
2		(230 ILCS 10/23) (from Ch. 120, par. 2423)
3		Sec. 23. The State Gaming Fund. On or after the effective
4		date of this Act, except as provided for payments into the
5		Horse Racing Equity Trust Fund under subsection (a) of Section
6		7, all of the fees and taxes collected pursuant to this Act or
7		the Chicago Casino Development Authority Act shall be deposited
8		into the State Gaming Fund, a special fund in the State
9		Treasury, which is hereby created. The adjusted gross receipts
10		of any riverboat gambling operations conducted by a licensed
11		manager on behalf of the State remaining after the payment of
12		the fees and expenses of the licensed manager shall be
13		deposited into the State Gaming Fund. Fines and penalties
14		collected pursuant to this Act or the Chicago Casino
15		Development Authority Act shall be deposited into the Education
16		Assistance Fund, created by Public Act 86-0018, of the State of
17		Illinois.
18		(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
19		(230 ILCS 10/24)
20		Sec. 24. Applicability of this Illinois Riverboat Gambling
21		Act. The provisions of the this Illinois Riverboat Gambling
22		Act, and all rules promulgated thereunder, shall apply to the
23		the Chicago Casino Development Authority Act and the Video
24		Gaming Act, except where there is a conflict between the 2

SB1739 Engrossed - 466 - LRB098 10559 AMC 40804 b
1		Acts. In the event of a conflict between this Act and the
2		Chicago Casino Development Authority Act, the terms of the
3		Chicago Casino Development Authority Act shall prevail. In the
4		event of a conflict between this Act and the Video Gaming Act,
5		the terms of this Act shall prevail.
6		(Source: P.A. 96-37, eff. 7-13-09.)
7		Section 90-42. The Video Gaming Act is amended by changing
8		Sections 5, 25, 45, 79, and 80 and by adding Section 81 as
9		follows:
10		(230 ILCS 40/5)
11		Sec. 5. Definitions. As used in this Act:
12		"Board" means the Illinois Gaming Board.
13		"Credit" means one, 5, 10, or 25 cents either won or
14		purchased by a player.
15		"Distributor" means an individual, partnership,
16		corporation, or limited liability company licensed under this
17		Act to buy, sell, lease, or distribute video gaming terminals
18		or major components or parts of video gaming terminals to or
19		from terminal operators.
20		"Terminal operator" means an individual, partnership,
21		corporation, or limited liability company that is licensed
22		under this Act and that owns, services, and maintains video
23		gaming terminals for placement in licensed establishments,
24		licensed truck stop establishments, licensed fraternal

SB1739 Engrossed - 467 - LRB098 10559 AMC 40804 b
1		establishments, or licensed veterans establishments.
2		"Licensed technician" means an individual who is licensed
3		under this Act to repair, service, and maintain video gaming
4		terminals.
5		"Licensed terminal handler" means a person, including but
6		not limited to an employee or independent contractor working
7		for a manufacturer, distributor, supplier, technician, or
8		terminal operator, who is licensed under this Act to possess or
9		control a video gaming terminal or to have access to the inner
10		workings of a video gaming terminal. A licensed terminal
11		handler does not include an individual, partnership,
12		corporation, or limited liability company defined as a
13		manufacturer, distributor, supplier, technician, or terminal
14		operator under this Act.
15		"Manufacturer" means an individual, partnership,
16		corporation, or limited liability company that is licensed
17		under this Act and that manufactures or assembles video gaming
18		terminals.
19		"Supplier" means an individual, partnership, corporation,
20		or limited liability company that is licensed under this Act to
21		supply major components or parts to video gaming terminals to
22		licensed terminal operators.
23		"Net terminal income" means money put into a video gaming
24		terminal minus credits paid out to players.
25		"Video gaming terminal" means any electronic video game
26		machine that, upon insertion of cash, is available to play or

SB1739 Engrossed - 468 - LRB098 10559 AMC 40804 b
1		simulate the play of a video game, including but not limited to
2		video poker, line up, and blackjack, as authorized by the Board
3		utilizing a video display and microprocessors in which the
4		player may receive free games or credits that can be redeemed
5		for cash. The term does not include a machine that directly
6		dispenses coins, cash, or tokens or is for amusement purposes
7		only.
8		"Licensed establishment" means any licensed retail
9		establishment where alcoholic liquor is drawn, poured, mixed,
10		or otherwise served for consumption on the premises and
11		includes any such establishment that has a contractual
12		relationship with an inter-track wagering location licensee
13		licensed under the Illinois Horse Racing Act of 1975, provided
14		any contractual relationship shall not include any transfer or
15		offer of revenue from the operation of video gaming under this
16		Act to any licensee licensed under the Illinois Horse Racing
17		Act of 1975. Provided, however, that the licensed establishment
18		that has such a contractual relationship with an inter-track
19		wagering location licensee may not, itself, be (i) an
20		inter-track wagering location licensee, (ii) the corporate
21		parent or subsidiary of any licensee licensed under the
22		Illinois Horse Racing Act of 1975, or (iii) the corporate
23		subsidiary of a corporation that is also the corporate parent
24		or subsidiary of any licensee licensed under the Illinois Horse
25		Racing Act of 1975. "Licensed establishment" does not include a
26		facility operated by an organization licensee, an inter-track

SB1739 Engrossed - 469 - LRB098 10559 AMC 40804 b
1		wagering licensee, or an inter-track wagering location
2		licensee licensed under the Illinois Horse Racing Act of 1975
3		or a riverboat licensed under the Illinois Riverboat Gambling
4		Act, except as provided in this paragraph.
5		"Licensed fraternal establishment" means the location
6		where a qualified fraternal organization that derives its
7		charter from a national fraternal organization regularly
8		meets.
9		"Licensed veterans establishment" means the location where
10		a qualified veterans organization that derives its charter from
11		a national veterans organization regularly meets.
12		"Licensed truck stop establishment" means a facility (i)
13		that is at least a 3-acre facility with a convenience store,
14		(ii) with separate diesel islands for fueling commercial motor
15		vehicles, (iii) that sells at retail more than 10,000 gallons
16		of diesel or biodiesel fuel per month, and (iv) with parking
17		spaces for commercial motor vehicles. "Commercial motor
18		vehicles" has the same meaning as defined in Section 18b-101 of
19		the Illinois Vehicle Code. The requirement of item (iii) of
20		this paragraph may be met by showing that estimated future
21		sales or past sales average at least 10,000 gallons per month.
22		(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
23		96-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff.
24		8-12-11.)
25		(230 ILCS 40/25)

SB1739 Engrossed - 470 - LRB098 10559 AMC 40804 b
1		Sec. 25. Restriction of licensees.
2		(a) Manufacturer. A person may not be licensed as a
3		manufacturer of a video gaming terminal in Illinois unless the
4		person has a valid manufacturer's license issued under this
5		Act. A manufacturer may only sell video gaming terminals for
6		use in Illinois to persons having a valid distributor's
7		license.
8		(b) Distributor. A person may not sell, distribute, or
9		lease or market a video gaming terminal in Illinois unless the
10		person has a valid distributor's license issued under this Act.
11		A distributor may only sell video gaming terminals for use in
12		Illinois to persons having a valid distributor's or terminal
13		operator's license.
14		(c) Terminal operator. A person may not own, maintain, or
15		place a video gaming terminal unless he has a valid terminal
16		operator's license issued under this Act. A terminal operator
17		may only place video gaming terminals for use in Illinois in
18		licensed establishments, licensed truck stop establishments,
19		licensed fraternal establishments, and licensed veterans
20		establishments. No terminal operator may give anything of
21		value, including but not limited to a loan or financing
22		arrangement, to a licensed establishment, licensed truck stop
23		establishment, licensed fraternal establishment, or licensed
24		veterans establishment as any incentive or inducement to locate
25		video terminals in that establishment. Of the after-tax profits
26		from a video gaming terminal, 50% shall be paid to the terminal

SB1739 Engrossed - 471 - LRB098 10559 AMC 40804 b
1		operator and 50% shall be paid to the licensed establishment,
2		licensed truck stop establishment, licensed fraternal
3		establishment, or licensed veterans establishment,
4		notwithstanding any agreement to the contrary. A video terminal
5		operator that violates one or more requirements of this
6		subsection is guilty of a Class 4 felony and is subject to
7		termination of his or her license by the Board.
8		(d) Licensed technician. A person may not service,
9		maintain, or repair a video gaming terminal in this State
10		unless he or she (1) has a valid technician's license issued
11		under this Act, (2) is a terminal operator, or (3) is employed
12		by a terminal operator, distributor, or manufacturer.
13		(d-5) Licensed terminal handler. No person, including, but
14		not limited to, an employee or independent contractor working
15		for a manufacturer, distributor, supplier, technician, or
16		terminal operator licensed pursuant to this Act, shall have
17		possession or control of a video gaming terminal, or access to
18		the inner workings of a video gaming terminal, unless that
19		person possesses a valid terminal handler's license issued
20		under this Act.
21		(e) Licensed establishment. No video gaming terminal may be
22		placed in any licensed establishment, licensed veterans
23		establishment, licensed truck stop establishment, or licensed
24		fraternal establishment unless the owner or agent of the owner
25		of the licensed establishment, licensed veterans
26		establishment, licensed truck stop establishment, or licensed

SB1739 Engrossed - 472 - LRB098 10559 AMC 40804 b
1		fraternal establishment has entered into a written use
2		agreement with the terminal operator for placement of the
3		terminals. A copy of the use agreement shall be on file in the
4		terminal operator's place of business and available for
5		inspection by individuals authorized by the Board. A licensed
6		establishment, licensed truck stop establishment, licensed
7		veterans establishment, or licensed fraternal establishment
8		may operate up to 5 video gaming terminals on its premises at
9		any time.
10		(f) (Blank).
11		(g) Financial interest restrictions. As used in this Act,
12		"substantial interest" in a partnership, a corporation, an
13		organization, an association, a business, or a limited
14		liability company means:
15		(A) When, with respect to a sole proprietorship, an
16		individual or his or her spouse owns, operates, manages, or
17		conducts, directly or indirectly, the organization,
18		association, or business, or any part thereof; or
19		(B) When, with respect to a partnership, the individual
20		or his or her spouse shares in any of the profits, or
21		potential profits, of the partnership activities; or
22		(C) When, with respect to a corporation, an individual
23		or his or her spouse is an officer or director, or the
24		individual or his or her spouse is a holder, directly or
25		beneficially, of 5% or more of any class of stock of the
26		corporation; or

SB1739 Engrossed - 473 - LRB098 10559 AMC 40804 b
1		(D) When, with respect to an organization not covered
2		in (A), (B) or (C) above, an individual or his or her
3		spouse is an officer or manages the business affairs, or
4		the individual or his or her spouse is the owner of or
5		otherwise controls 10% or more of the assets of the
6		organization; or
7		(E) When an individual or his or her spouse furnishes
8		5% or more of the capital, whether in cash, goods, or
9		services, for the operation of any business, association,
10		or organization during any calendar year; or
11		(F) When, with respect to a limited liability company,
12		an individual or his or her spouse is a member, or the
13		individual or his or her spouse is a holder, directly or
14		beneficially, of 5% or more of the membership interest of
15		the limited liability company.
16		For purposes of this subsection (g), "individual" includes
17		all individuals or their spouses whose combined interest would
18		qualify as a substantial interest under this subsection (g) and
19		whose activities with respect to an organization, association,
20		or business are so closely aligned or coordinated as to
21		constitute the activities of a single entity.
22		(h) Location restriction. A licensed establishment,
23		licensed truck stop establishment, licensed fraternal
24		establishment, or licensed veterans establishment that is (i)
25		located within 1,000 feet of a facility operated by an
26		organization licensee or an inter-track wagering licensee

SB1739 Engrossed - 474 - LRB098 10559 AMC 40804 b
1		licensed under the Illinois Horse Racing Act of 1975 or the
2		home dock of a riverboat licensed under the Illinois Riverboat
3		Gambling Act or (ii) located within 100 feet of a school or a
4		place of worship under the Religious Corporation Act, is
5		ineligible to operate a video gaming terminal. The location
6		restrictions in this subsection (h) do not apply if a facility
7		operated by an organization licensee, an inter-track wagering
8		licensee, or an inter-track wagering location licensee, a
9		school, or a place of worship moves to or is established within
10		the restricted area after a licensed establishment, licensed
11		truck stop establishment, licensed fraternal establishment, or
12		licensed veterans establishment becomes licensed under this
13		Act. For the purpose of this subsection, "school" means an
14		elementary or secondary public school, or an elementary or
15		secondary private school registered with or recognized by the
16		State Board of Education.
17		Notwithstanding the provisions of this subsection (h), the
18		Board may waive the requirement that a licensed establishment,
19		licensed truck stop establishment, licensed fraternal
20		establishment, or licensed veterans establishment not be
21		located within 1,000 feet from a facility operated by an
22		organization licensee, an inter-track wagering licensee, or an
23		inter-track wagering location licensee licensed under the
24		Illinois Horse Racing Act of 1975 or the home dock of a
25		riverboat licensed under the Illinois Riverboat Gambling Act.
26		The Board shall not grant such waiver if there is any common

SB1739 Engrossed - 475 - LRB098 10559 AMC 40804 b
1		ownership or control, shared business activity, or contractual
2		arrangement of any type between the establishment and the
3		organization licensee, inter-track wagering licensee,
4		inter-track wagering location licensee, or owners licensee of a
5		riverboat. The Board shall adopt rules to implement the
6		provisions of this paragraph.
7		(i) Undue economic concentration. In addition to
8		considering all other requirements under this Act, in deciding
9		whether to approve the operation of video gaming terminals by a
10		terminal operator in a location, the Board shall consider the
11		impact of any economic concentration of such operation of video
12		gaming terminals. The Board shall not allow a terminal operator
13		to operate video gaming terminals if the Board determines such
14		operation will result in undue economic concentration. For
15		purposes of this Section, "undue economic concentration" means
16		that a terminal operator would have such actual or potential
17		influence over video gaming terminals in Illinois as to:
18		(1) substantially impede or suppress competition among
19		terminal operators;
20		(2) adversely impact the economic stability of the
21		video gaming industry in Illinois; or
22		(3) negatively impact the purposes of the Video Gaming
23		Act.
24		The Board shall adopt rules concerning undue economic
25		concentration with respect to the operation of video gaming
26		terminals in Illinois. The rules shall include, but not be

SB1739 Engrossed - 476 - LRB098 10559 AMC 40804 b
1		limited to, (i) limitations on the number of video gaming
2		terminals operated by any terminal operator within a defined
3		geographic radius and (ii) guidelines on the discontinuation of
4		operation of any such video gaming terminals the Board
5		determines will cause undue economic concentration.
6		(j) The provisions of the Illinois Antitrust Act are fully
7		and equally applicable to the activities of any licensee under
8		this Act.
9		(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
10		eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
11		96-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)
12		(230 ILCS 40/45)
13		Sec. 45. Issuance of license.
14		(a) The burden is upon each applicant to demonstrate his
15		suitability for licensure. Each video gaming terminal
16		manufacturer, distributor, supplier, operator, handler,
17		licensed establishment, licensed truck stop establishment,
18		licensed fraternal establishment, and licensed veterans
19		establishment shall be licensed by the Board. The Board may
20		issue or deny a license under this Act to any person pursuant
21		to the same criteria set forth in Section 9 of the Illinois
22		Riverboat Gambling Act.
23		(a-5) The Board shall not grant a license to a person who
24		has facilitated, enabled, or participated in the use of
25		coin-operated devices for gambling purposes or who is under the

SB1739 Engrossed - 477 - LRB098 10559 AMC 40804 b
1		significant influence or control of such a person. For the
2		purposes of this Act, "facilitated, enabled, or participated in
3		the use of coin-operated amusement devices for gambling
4		purposes" means that the person has been convicted of any
5		violation of Article 28 of the Criminal Code of 1961 or the
6		Criminal Code of 2012. If there is pending legal action against
7		a person for any such violation, then the Board shall delay the
8		licensure of that person until the legal action is resolved.
9		(b) Each person seeking and possessing a license as a video
10		gaming terminal manufacturer, distributor, supplier, operator,
11		handler, licensed establishment, licensed truck stop
12		establishment, licensed fraternal establishment, or licensed
13		veterans establishment shall submit to a background
14		investigation conducted by the Board with the assistance of the
15		State Police or other law enforcement. The background
16		investigation shall include each beneficiary of a trust, each
17		partner of a partnership, and each director and officer and all
18		stockholders of 5% or more in a parent or subsidiary
19		corporation of a video gaming terminal manufacturer,
20		distributor, supplier, operator, or licensed establishment,
21		licensed truck stop establishment, licensed fraternal
22		establishment, or licensed veterans establishment.
23		(c) Each person seeking and possessing a license as a video
24		gaming terminal manufacturer, distributor, supplier, operator,
25		handler, licensed establishment, licensed truck stop
26		establishment, licensed fraternal establishment, or licensed

SB1739 Engrossed - 478 - LRB098 10559 AMC 40804 b
1		veterans establishment shall disclose the identity of every
2		person, association, trust, corporation, or limited liability
3		company having a greater than 1% direct or indirect pecuniary
4		interest in the video gaming terminal operation for which the
5		license is sought. If the disclosed entity is a trust, the
6		application shall disclose the names and addresses of the
7		beneficiaries; if a corporation, the names and addresses of all
8		stockholders and directors; if a limited liability company, the
9		names and addresses of all members; or if a partnership, the
10		names and addresses of all partners, both general and limited.
11		(d) No person may be licensed as a video gaming terminal
12		manufacturer, distributor, supplier, operator, handler,
13		licensed establishment, licensed truck stop establishment,
14		licensed fraternal establishment, or licensed veterans
15		establishment if that person has been found by the Board to:
16		(1) have a background, including a criminal record,
17		reputation, habits, social or business associations, or
18		prior activities that pose a threat to the public interests
19		of the State or to the security and integrity of video
20		gaming;
21		(2) create or enhance the dangers of unsuitable,
22		unfair, or illegal practices, methods, and activities in
23		the conduct of video gaming; or
24		(3) present questionable business practices and
25		financial arrangements incidental to the conduct of video
26		gaming activities.

SB1739 Engrossed - 479 - LRB098 10559 AMC 40804 b
1		(e) Any applicant for any license under this Act has the
2		burden of proving his or her qualifications to the satisfaction
3		of the Board. The Board may adopt rules to establish additional
4		qualifications and requirements to preserve the integrity and
5		security of video gaming in this State.
6		(f) A non-refundable application fee shall be paid at the
7		time an application for a license is filed with the Board in
8		the following amounts:
9		(1) Manufacturer..........................$5,000
10		(2) Distributor...........................$5,000
11		(3) Terminal operator.....................$5,000
12		(4) Supplier..............................$2,500
13		(5) Technician..............................$100
14		(6) Terminal Handler..............................$50
15		(g) The Board shall establish an annual fee for each
16		license not to exceed the following:
17		(1) Manufacturer.........................$10,000
18		(2) Distributor..........................$10,000
19		(3) Terminal operator.....................$5,000
20		(4) Supplier..............................$2,000
21		(5) Technician..............................$100
22		(6) Licensed establishment, licensed truck stop
23		establishment, licensed fraternal establishment,
24		or licensed veterans establishment..............$100
25		(7) Video gaming terminal...................$100
26		(8) Terminal Handler..............................$50

SB1739 Engrossed - 480 - LRB098 10559 AMC 40804 b
1		(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
2		eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
3		97-1150, eff. 1-25-13.)
4		(230 ILCS 40/79)
5		Sec. 79. Investigators. Investigators appointed by the
6		Board pursuant to the powers conferred upon the Board by
7		paragraph (20.6) of subsection (c) of Section 5 of the Illinois
8		Riverboat Gambling Act and Section 80 of this Act shall have
9		authority to conduct investigations, searches, seizures,
10		arrests, and other duties imposed under this Act and the
11		Illinois Riverboat Gambling Act, as deemed necessary by the
12		Board. These investigators have and may exercise all of the
13		rights and powers of peace officers, provided that these powers
14		shall be (1) limited to offenses or violations occurring or
15		committed in connection with conduct subject to this Act,
16		including, but not limited to, the manufacture, distribution,
17		supply, operation, placement, service, maintenance, or play of
18		video gaming terminals and the distribution of profits and
19		collection of revenues resulting from such play, and (2)
20		exercised, to the fullest extent practicable, in cooperation
21		with the local police department of the applicable municipality
22		or, if these powers are exercised outside the boundaries of an
23		incorporated municipality or within a municipality that does
24		not have its own police department, in cooperation with the
25		police department whose jurisdiction encompasses the

SB1739 Engrossed - 481 - LRB098 10559 AMC 40804 b
1		applicable locality.
2		(Source: P.A. 97-809, eff. 7-13-12.)
3		(230 ILCS 40/80)
4		Sec. 80. Applicability of Illinois Riverboat Gambling Act.
5		The provisions of the Illinois Riverboat Gambling Act, and all
6		rules promulgated thereunder, shall apply to the Video Gaming
7		Act, except where there is a conflict between the 2 Acts. In
8		the event of a conflict between the 2 Acts, the provisions of
9		the Illinois Gambling Act shall prevail. All provisions of the
10		Uniform Penalty and Interest Act shall apply, as far as
11		practicable, to the subject matter of this Act to the same
12		extent as if such provisions were included herein.
13		(Source: P.A. 96-37, eff. 7-13-09.)
14		(230 ILCS 40/81 new)
15		Sec. 81. Prohibition of political contributions from
16		certain licensees and applicants.
17		(a) The General Assembly has a compelling interest in
18		protecting the integrity of both the electoral process and the
19		legislative process by preventing corruption and the
20		appearance of corruption which may arise through permitting
21		certain political campaign contributions by certain persons
22		involved in the gaming industry and regulated by the State.
23		Unlike most other regulated industries, gaming is especially
24		susceptible to corruption and potential criminal influence.

SB1739 Engrossed - 482 - LRB098 10559 AMC 40804 b
1		In Illinois, only licensed gaming activities are legal and
2		all other gaming activities are strictly prohibited. Given
3		these circumstances, it is imperative to eliminate any
4		potential corrupt influence in the gaming industry and the
5		electoral process. Banning political campaign contributions by
6		certain persons subject to this Section to State officeholders
7		and candidates for such offices and, where necessary, to county
8		and municipal officeholders and candidates for such offices in
9		counties and municipalities that receive financial benefits
10		from gaming activities is necessary to prevent corruption and
11		the appearance of corruption that may arise when political
12		campaign contributions and gaming that is regulated by the
13		State and that confers benefits on counties and municipalities
14		are intermingled.
15		(b) As used in this Section:
16		"Affiliated entity" means (i) any corporate parent and each
17		operating subsidiary of the business entity applying for or
18		holding a license, (ii) each operating subsidiary of the
19		corporate parent of the business entity applying for or holding
20		a license, (iii) any organization recognized by the United
21		States Internal Revenue Service as a tax-exempt organization
22		described in Section 501(c) of the Internal Revenue Code of
23		1986 (or any successor provision of federal tax law)
24		established by one or more business entities seeking or holding
25		a license, any affiliated entity of such business entity, or
26		any affiliated person of such business entity, and (iv) any

SB1739 Engrossed - 483 - LRB098 10559 AMC 40804 b
1		political committee for which the business entity applying for
2		or holding a license, or any 501(c) organization described in
3		item (iii) related to that business entity, is the sponsoring
4		entity, as defined in Section 9-3 of the Election Code. For
5		purposes of item (iv), the funding of all business entities
6		applying for or holding a license shall be aggregated in
7		determining whether such political committee is an affiliated
8		entity.
9		"Affiliated person" means (i) any person with any ownership
10		interest or distributive share in excess of 7.5% of any
11		business entity applying for or holding a license, (ii)
12		executive employees of any such business entity, (iii) any
13		person designated as a person of significant influence and
14		control under the Video Gaming Act, and (iv) the spouse of such
15		persons.
16		"Business entity" means any entity doing business for
17		profit, whether organized as a corporation, partnership, sole
18		proprietorship, limited liability company, or partnership or
19		otherwise.
20		"Contribution" means a contribution as defined in Section
21		9-1.4 of the Election Code.
22		"Declared candidate" means a person who has filed a
23		statement of candidacy and petition for nomination or election
24		in the principal office of the State Board of Elections, or in
25		the office of the appropriate election authority for any county
26		or municipality in which a video gaming terminal is located or

SB1739 Engrossed - 484 - LRB098 10559 AMC 40804 b
1		proposed or which receives any video gaming revenue, for the
2		office of Governor, Lieutenant Governor, Attorney General,
3		Secretary of State, Comptroller, Treasurer, member of the
4		General Assembly, chief executive or any member of the
5		legislative body of any municipality in which a video gaming
6		terminal is located or proposed or which receives any video
7		gaming revenue, or chief executive or any member of the
8		legislative body of any county containing any unincorporated
9		area in which a video gaming terminal is located or which
10		receives any video gaming revenue.
11		"Executive employee" means any person who is an officer or
12		director or who fulfills duties equivalent to those of an
13		officer or director of a business entity applying for or
14		holding a license; and (ii) any employee of such business
15		entity who is required to register under the Lobbyist
16		Registration Act.
17		"License" means any license issued pursuant to this Act.
18		"Officeholder" means the Governor, the Lieutenant
19		Governor, the Attorney General, the Secretary of State, the
20		Comptroller, the Treasurer, a member of the General Assembly,
21		the chief executive or any member of the legislative body of
22		any municipality in which a video gaming terminal is located or
23		proposed or which receives any video gaming revenue, or the
24		chief executive or any member of the legislative body of any
25		county containing any unincorporated area in which a video
26		gaming terminal is located or which receives any video gaming

SB1739 Engrossed - 485 - LRB098 10559 AMC 40804 b
1		revenue.
2		(c) Any person or business entity applying for or holding a
3		manufacturer or distributor license, any affiliated entities
4		or persons of such business entity, and any entities or persons
5		soliciting a contribution or causing a contribution to be made
6		on behalf of such person or business entity, are prohibited
7		from making any contribution to any officeholder or declared
8		candidate or any political committee affiliated with any
9		officeholder or declared candidate, as defined in Section 9-1.8
10		of the Election Code.
11		The Board shall have authority to suspend, revoke, or
12		restrict the license and to impose civil penalties of up to
13		$100,000, for each violation of this subsection (c). A notice
14		of each such violation and the penalty imposed shall be
15		published on the Board's website and in the Illinois Register.
16		Payments received by the State pursuant to this subsection
17		shall be deposited into the General Revenue Fund.
18		Any person or business entity applying for or holding a
19		terminal operator license, any affiliated entities or persons
20		of such business entity, and any entities or persons soliciting
21		a contribution or causing a contribution to be made on behalf
22		of such person or business entity, are prohibited from making
23		any contribution to any officeholder or declared candidate or
24		any political committee affiliated with any officeholder or
25		declared candidate, as defined in Section 9-1.8 of the Election
26		Code, except that any such person or entity may make a

SB1739 Engrossed - 486 - LRB098 10559 AMC 40804 b
1		contribution to the chief executive or any member of the
2		legislative body of any municipality in which a video gaming
3		terminal is located or proposed or which receives any video
4		gaming revenue, the chief executive or any member of the
5		legislative body of any county containing any unincorporated
6		area in which a video gaming terminal is located or which
7		receives any video gaming revenue, or any declared candidates
8		for such offices, so long as the video gaming terminal
9		associated with the terminal operator license held or applied
10		for is not located in the same municipality or county in which
11		the officeholder or declared candidate holds or is seeking
12		office. This prohibition shall commence upon filing of an
13		application for a license and shall continue for a period of 2
14		years after termination, suspension, or revocation of the
15		license.
16		Any officeholder or declared candidate or any political
17		committee affiliated with any officeholder or declared
18		candidate that has received a contribution in violation of this
19		subsection (c) shall pay an amount equal to the value of the
20		contribution to the State no more than 30 days after notice of
21		the violation concerning the contribution appears in the
22		Illinois Register. Payments received by the State pursuant to
23		this subsection shall be deposited into the General Revenue
24		Fund.
25		(d) The Board shall post on its website a list of all
26		persons, business entities, and affiliated entities prohibited

SB1739 Engrossed - 487 - LRB098 10559 AMC 40804 b
1		from making contributions to any officeholder or declared
2		candidate political committee pursuant to subsection (c),
3		which list shall be updated and published on, at a minimum, a
4		semiannual basis.
5		Any person, business entity, or affiliated entity
6		prohibited from making contributions to any officeholder or
7		declared candidate political committee pursuant to subsection
8		(c) of this Section shall notify the Board within 7 days after
9		discovering any necessary change or addition to the information
10		relating to that person, business entity, or affiliated entity
11		contained in the list.
12		An individual who acts in good faith and in reliance on any
13		information contained in the list shall not be subject to any
14		penalties or liability imposed for a violation of this Section.
15		(e) If any provision of this Section is held invalid or its
16		application to any person or circumstance is held invalid, the
17		invalidity of that provision or application does not affect the
18		other provisions or applications of this Section that can be
19		given effect without the invalid application or provision.
20		Section 90-45. The Liquor Control Act of 1934 is amended by
21		changing Sections 5-1 and 6-30 as follows:
22		(235 ILCS 5/5-1) (from Ch. 43, par. 115)
23		Sec. 5-1. Licenses issued by the Illinois Liquor Control
24		Commission shall be of the following classes:

SB1739 Engrossed - 488 - LRB098 10559 AMC 40804 b
1		(a) Manufacturer's license - Class 1. Distiller, Class 2.
2		Rectifier, Class 3. Brewer, Class 4. First Class Wine
3		Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
4		First Class Winemaker, Class 7. Second Class Winemaker, Class
5		8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
6		10. Craft Brewer,
7		(b) Distributor's license,
8		(c) Importing Distributor's license,
9		(d) Retailer's license,
10		(e) Special Event Retailer's license (not-for-profit),
11		(f) Railroad license,
12		(g) Boat license,
13		(h) Non-Beverage User's license,
14		(i) Wine-maker's premises license,
15		(j) Airplane license,
16		(k) Foreign importer's license,
17		(l) Broker's license,
18		(m) Non-resident dealer's license,
19		(n) Brew Pub license,
20		(o) Auction liquor license,
21		(p) Caterer retailer license,
22		(q) Special use permit license,
23		(r) Winery shipper's license.
24		No person, firm, partnership, corporation, or other legal
25		business entity that is engaged in the manufacturing of wine
26		may concurrently obtain and hold a wine-maker's license and a

SB1739 Engrossed - 489 - LRB098 10559 AMC 40804 b
1		wine manufacturer's license.
2		(a) A manufacturer's license shall allow the manufacture,
3		importation in bulk, storage, distribution and sale of
4		alcoholic liquor to persons without the State, as may be
5		permitted by law and to licensees in this State as follows:
6		Class 1. A Distiller may make sales and deliveries of
7		alcoholic liquor to distillers, rectifiers, importing
8		distributors, distributors and non-beverage users and to no
9		other licensees.
10		Class 2. A Rectifier, who is not a distiller, as defined
11		herein, may make sales and deliveries of alcoholic liquor to
12		rectifiers, importing distributors, distributors, retailers
13		and non-beverage users and to no other licensees.
14		Class 3. A Brewer may make sales and deliveries of beer to
15		importing distributors and distributors and may make sales as
16		authorized under subsection (e) of Section 6-4 of this Act.
17		Class 4. A first class wine-manufacturer may make sales and
18		deliveries of up to 50,000 gallons of wine to manufacturers,
19		importing distributors and distributors, and to no other
20		licensees.
21		Class 5. A second class Wine manufacturer may make sales
22		and deliveries of more than 50,000 gallons of wine to
23		manufacturers, importing distributors and distributors and to
24		no other licensees.
25		Class 6. A first-class wine-maker's license shall allow the
26		manufacture of up to 50,000 gallons of wine per year, and the

SB1739 Engrossed - 490 - LRB098 10559 AMC 40804 b
1		storage and sale of such wine to distributors in the State and
2		to persons without the State, as may be permitted by law. A
3		person who, prior to the effective date of this amendatory Act
4		of the 95th General Assembly, is a holder of a first-class
5		wine-maker's license and annually produces more than 25,000
6		gallons of its own wine and who distributes its wine to
7		licensed retailers shall cease this practice on or before July
8		1, 2008 in compliance with this amendatory Act of the 95th
9		General Assembly.
10		Class 7. A second-class wine-maker's license shall allow
11		the manufacture of between 50,000 and 150,000 gallons of wine
12		per year, and the storage and sale of such wine to distributors
13		in this State and to persons without the State, as may be
14		permitted by law. A person who, prior to the effective date of
15		this amendatory Act of the 95th General Assembly, is a holder
16		of a second-class wine-maker's license and annually produces
17		more than 25,000 gallons of its own wine and who distributes
18		its wine to licensed retailers shall cease this practice on or
19		before July 1, 2008 in compliance with this amendatory Act of
20		the 95th General Assembly.
21		Class 8. A limited wine-manufacturer may make sales and
22		deliveries not to exceed 40,000 gallons of wine per year to
23		distributors, and to non-licensees in accordance with the
24		provisions of this Act.
25		Class 9. A craft distiller license shall allow the
26		manufacture of up to 15,000 gallons of spirits by distillation

SB1739 Engrossed - 491 - LRB098 10559 AMC 40804 b
1		per year and the storage of such spirits. If a craft distiller
2		licensee is not affiliated with any other manufacturer, then
3		the craft distiller licensee may sell such spirits to
4		distributors in this State and non-licensees to the extent
5		permitted by any exemption approved by the Commission pursuant
6		to Section 6-4 of this Act.
7		Any craft distiller licensed under this Act who on the
8		effective date of this amendatory Act of the 96th General
9		Assembly was licensed as a distiller and manufactured no more
10		spirits than permitted by this Section shall not be required to
11		pay the initial licensing fee.
12		Class 10. A craft brewer's license, which may only be
13		issued to a licensed brewer or licensed non-resident dealer,
14		shall allow the manufacture of up to 465,000 gallons of beer
15		per year. A craft brewer licensee may make sales and deliveries
16		to importing distributors and distributors and to retail
17		licensees in accordance with the conditions set forth in
18		paragraph (18) of subsection (a) of Section 3-12 of this Act.
19		(a-1) A manufacturer which is licensed in this State to
20		make sales or deliveries of alcoholic liquor and which enlists
21		agents, representatives, or individuals acting on its behalf
22		who contact licensed retailers on a regular and continual basis
23		in this State must register those agents, representatives, or
24		persons acting on its behalf with the State Commission.
25		Registration of agents, representatives, or persons acting
26		on behalf of a manufacturer is fulfilled by submitting a form

SB1739 Engrossed - 492 - LRB098 10559 AMC 40804 b
1		to the Commission. The form shall be developed by the
2		Commission and shall include the name and address of the
3		applicant, the name and address of the manufacturer he or she
4		represents, the territory or areas assigned to sell to or
5		discuss pricing terms of alcoholic liquor, and any other
6		questions deemed appropriate and necessary. All statements in
7		the forms required to be made by law or by rule shall be deemed
8		material, and any person who knowingly misstates any material
9		fact under oath in an application is guilty of a Class B
10		misdemeanor. Fraud, misrepresentation, false statements,
11		misleading statements, evasions, or suppression of material
12		facts in the securing of a registration are grounds for
13		suspension or revocation of the registration.
14		(b) A distributor's license shall allow the wholesale
15		purchase and storage of alcoholic liquors and sale of alcoholic
16		liquors to licensees in this State and to persons without the
17		State, as may be permitted by law.
18		(c) An importing distributor's license may be issued to and
19		held by those only who are duly licensed distributors, upon the
20		filing of an application by a duly licensed distributor, with
21		the Commission and the Commission shall, without the payment of
22		any fee, immediately issue such importing distributor's
23		license to the applicant, which shall allow the importation of
24		alcoholic liquor by the licensee into this State from any point
25		in the United States outside this State, and the purchase of
26		alcoholic liquor in barrels, casks or other bulk containers and

SB1739 Engrossed - 493 - LRB098 10559 AMC 40804 b
1		the bottling of such alcoholic liquors before resale thereof,
2		but all bottles or containers so filled shall be sealed,
3		labeled, stamped and otherwise made to comply with all
4		provisions, rules and regulations governing manufacturers in
5		the preparation and bottling of alcoholic liquors. The
6		importing distributor's license shall permit such licensee to
7		purchase alcoholic liquor from Illinois licensed non-resident
8		dealers and foreign importers only.
9		(d) A retailer's license shall allow the licensee to sell
10		and offer for sale at retail, only in the premises specified in
11		the license, alcoholic liquor for use or consumption, but not
12		for resale in any form. Nothing in this amendatory Act of the
13		95th General Assembly shall deny, limit, remove, or restrict
14		the ability of a holder of a retailer's license to transfer,
15		deliver, or ship alcoholic liquor to the purchaser for use or
16		consumption subject to any applicable local law or ordinance.
17		Any retail license issued to a manufacturer shall only permit
18		the manufacturer to sell beer at retail on the premises
19		actually occupied by the manufacturer. For the purpose of
20		further describing the type of business conducted at a retail
21		licensed premises, a retailer's licensee may be designated by
22		the State Commission as (i) an on premise consumption retailer,
23		(ii) an off premise sale retailer, or (iii) a combined on
24		premise consumption and off premise sale retailer.
25		Notwithstanding any other provision of this subsection
26		(d), a retail licensee may sell alcoholic liquors to a special

SB1739 Engrossed - 494 - LRB098 10559 AMC 40804 b
1		event retailer licensee for resale to the extent permitted
2		under subsection (e).
3		(e) A special event retailer's license (not-for-profit)
4		shall permit the licensee to purchase alcoholic liquors from an
5		Illinois licensed distributor (unless the licensee purchases
6		less than $500 of alcoholic liquors for the special event, in
7		which case the licensee may purchase the alcoholic liquors from
8		a licensed retailer) and shall allow the licensee to sell and
9		offer for sale, at retail, alcoholic liquors for use or
10		consumption, but not for resale in any form and only at the
11		location and on the specific dates designated for the special
12		event in the license. An applicant for a special event retailer
13		license must (i) furnish with the application: (A) a resale
14		number issued under Section 2c of the Retailers' Occupation Tax
15		Act or evidence that the applicant is registered under Section
16		2a of the Retailers' Occupation Tax Act, (B) a current, valid
17		exemption identification number issued under Section 1g of the
18		Retailers' Occupation Tax Act, and a certification to the
19		Commission that the purchase of alcoholic liquors will be a
20		tax-exempt purchase, or (C) a statement that the applicant is
21		not registered under Section 2a of the Retailers' Occupation
22		Tax Act, does not hold a resale number under Section 2c of the
23		Retailers' Occupation Tax Act, and does not hold an exemption
24		number under Section 1g of the Retailers' Occupation Tax Act,
25		in which event the Commission shall set forth on the special
26		event retailer's license a statement to that effect; (ii)

SB1739 Engrossed - 495 - LRB098 10559 AMC 40804 b
1		submit with the application proof satisfactory to the State
2		Commission that the applicant will provide dram shop liability
3		insurance in the maximum limits; and (iii) show proof
4		satisfactory to the State Commission that the applicant has
5		obtained local authority approval.
6		(f) A railroad license shall permit the licensee to import
7		alcoholic liquors into this State from any point in the United
8		States outside this State and to store such alcoholic liquors
9		in this State; to make wholesale purchases of alcoholic liquors
10		directly from manufacturers, foreign importers, distributors
11		and importing distributors from within or outside this State;
12		and to store such alcoholic liquors in this State; provided
13		that the above powers may be exercised only in connection with
14		the importation, purchase or storage of alcoholic liquors to be
15		sold or dispensed on a club, buffet, lounge or dining car
16		operated on an electric, gas or steam railway in this State;
17		and provided further, that railroad licensees exercising the
18		above powers shall be subject to all provisions of Article VIII
19		of this Act as applied to importing distributors. A railroad
20		license shall also permit the licensee to sell or dispense
21		alcoholic liquors on any club, buffet, lounge or dining car
22		operated on an electric, gas or steam railway regularly
23		operated by a common carrier in this State, but shall not
24		permit the sale for resale of any alcoholic liquors to any
25		licensee within this State. A license shall be obtained for
26		each car in which such sales are made.

SB1739 Engrossed - 496 - LRB098 10559 AMC 40804 b
1		(g) A boat license shall allow the sale of alcoholic liquor
2		in individual drinks, on any passenger boat regularly operated
3		as a common carrier on navigable waters in this State or on any
4		riverboat operated under the Illinois Riverboat Gambling Act,
5		which boat or riverboat maintains a public dining room or
6		restaurant thereon.
7		(h) A non-beverage user's license shall allow the licensee
8		to purchase alcoholic liquor from a licensed manufacturer or
9		importing distributor, without the imposition of any tax upon
10		the business of such licensed manufacturer or importing
11		distributor as to such alcoholic liquor to be used by such
12		licensee solely for the non-beverage purposes set forth in
13		subsection (a) of Section 8-1 of this Act, and such licenses
14		shall be divided and classified and shall permit the purchase,
15		possession and use of limited and stated quantities of
16		alcoholic liquor as follows:
17		Class 1, not to exceed ......................... 500 gallons
18		Class 2, not to exceed ....................... 1,000 gallons
19		Class 3, not to exceed ....................... 5,000 gallons
20		Class 4, not to exceed ...................... 10,000 gallons
21		Class 5, not to exceed ....................... 50,000 gallons
22		(i) A wine-maker's premises license shall allow a licensee
23		that concurrently holds a first-class wine-maker's license to
24		sell and offer for sale at retail in the premises specified in
25		such license not more than 50,000 gallons of the first-class
26		wine-maker's wine that is made at the first-class wine-maker's

SB1739 Engrossed - 497 - LRB098 10559 AMC 40804 b
1		licensed premises per year for use or consumption, but not for
2		resale in any form. A wine-maker's premises license shall allow
3		a licensee who concurrently holds a second-class wine-maker's
4		license to sell and offer for sale at retail in the premises
5		specified in such license up to 100,000 gallons of the
6		second-class wine-maker's wine that is made at the second-class
7		wine-maker's licensed premises per year for use or consumption
8		but not for resale in any form. A wine-maker's premises license
9		shall allow a licensee that concurrently holds a first-class
10		wine-maker's license or a second-class wine-maker's license to
11		sell and offer for sale at retail at the premises specified in
12		the wine-maker's premises license, for use or consumption but
13		not for resale in any form, any beer, wine, and spirits
14		purchased from a licensed distributor. Upon approval from the
15		State Commission, a wine-maker's premises license shall allow
16		the licensee to sell and offer for sale at (i) the wine-maker's
17		licensed premises and (ii) at up to 2 additional locations for
18		use and consumption and not for resale. Each location shall
19		require additional licensing per location as specified in
20		Section 5-3 of this Act. A wine-maker's premises licensee shall
21		secure liquor liability insurance coverage in an amount at
22		least equal to the maximum liability amounts set forth in
23		subsection (a) of Section 6-21 of this Act.
24		(j) An airplane license shall permit the licensee to import
25		alcoholic liquors into this State from any point in the United
26		States outside this State and to store such alcoholic liquors

SB1739 Engrossed - 498 - LRB098 10559 AMC 40804 b
1		in this State; to make wholesale purchases of alcoholic liquors
2		directly from manufacturers, foreign importers, distributors
3		and importing distributors from within or outside this State;
4		and to store such alcoholic liquors in this State; provided
5		that the above powers may be exercised only in connection with
6		the importation, purchase or storage of alcoholic liquors to be
7		sold or dispensed on an airplane; and provided further, that
8		airplane licensees exercising the above powers shall be subject
9		to all provisions of Article VIII of this Act as applied to
10		importing distributors. An airplane licensee shall also permit
11		the sale or dispensing of alcoholic liquors on any passenger
12		airplane regularly operated by a common carrier in this State,
13		but shall not permit the sale for resale of any alcoholic
14		liquors to any licensee within this State. A single airplane
15		license shall be required of an airline company if liquor
16		service is provided on board aircraft in this State. The annual
17		fee for such license shall be as determined in Section 5-3.
18		(k) A foreign importer's license shall permit such licensee
19		to purchase alcoholic liquor from Illinois licensed
20		non-resident dealers only, and to import alcoholic liquor other
21		than in bulk from any point outside the United States and to
22		sell such alcoholic liquor to Illinois licensed importing
23		distributors and to no one else in Illinois; provided that (i)
24		the foreign importer registers with the State Commission every
25		brand of alcoholic liquor that it proposes to sell to Illinois
26		licensees during the license period, (ii) the foreign importer

SB1739 Engrossed - 499 - LRB098 10559 AMC 40804 b
1		complies with all of the provisions of Section 6-9 of this Act
2		with respect to registration of such Illinois licensees as may
3		be granted the right to sell such brands at wholesale, and
4		(iii) the foreign importer complies with the provisions of
5		Sections 6-5 and 6-6 of this Act to the same extent that these
6		provisions apply to manufacturers.
7		(l) (i) A broker's license shall be required of all persons
8		who solicit orders for, offer to sell or offer to supply
9		alcoholic liquor to retailers in the State of Illinois, or who
10		offer to retailers to ship or cause to be shipped or to make
11		contact with distillers, rectifiers, brewers or manufacturers
12		or any other party within or without the State of Illinois in
13		order that alcoholic liquors be shipped to a distributor,
14		importing distributor or foreign importer, whether such
15		solicitation or offer is consummated within or without the
16		State of Illinois.
17		No holder of a retailer's license issued by the Illinois
18		Liquor Control Commission shall purchase or receive any
19		alcoholic liquor, the order for which was solicited or offered
20		for sale to such retailer by a broker unless the broker is the
21		holder of a valid broker's license.
22		The broker shall, upon the acceptance by a retailer of the
23		broker's solicitation of an order or offer to sell or supply or
24		deliver or have delivered alcoholic liquors, promptly forward
25		to the Illinois Liquor Control Commission a notification of
26		said transaction in such form as the Commission may by

SB1739 Engrossed - 500 - LRB098 10559 AMC 40804 b
1		regulations prescribe.
2		(ii) A broker's license shall be required of a person
3		within this State, other than a retail licensee, who, for a fee
4		or commission, promotes, solicits, or accepts orders for
5		alcoholic liquor, for use or consumption and not for resale, to
6		be shipped from this State and delivered to residents outside
7		of this State by an express company, common carrier, or
8		contract carrier. This Section does not apply to any person who
9		promotes, solicits, or accepts orders for wine as specifically
10		authorized in Section 6-29 of this Act.
11		A broker's license under this subsection (l) shall not
12		entitle the holder to buy or sell any alcoholic liquors for his
13		own account or to take or deliver title to such alcoholic
14		liquors.
15		This subsection (l) shall not apply to distributors,
16		employees of distributors, or employees of a manufacturer who
17		has registered the trademark, brand or name of the alcoholic
18		liquor pursuant to Section 6-9 of this Act, and who regularly
19		sells such alcoholic liquor in the State of Illinois only to
20		its registrants thereunder.
21		Any agent, representative, or person subject to
22		registration pursuant to subsection (a-1) of this Section shall
23		not be eligible to receive a broker's license.
24		(m) A non-resident dealer's license shall permit such
25		licensee to ship into and warehouse alcoholic liquor into this
26		State from any point outside of this State, and to sell such

SB1739 Engrossed - 501 - LRB098 10559 AMC 40804 b
1		alcoholic liquor to Illinois licensed foreign importers and
2		importing distributors and to no one else in this State;
3		provided that (i) said non-resident dealer shall register with
4		the Illinois Liquor Control Commission each and every brand of
5		alcoholic liquor which it proposes to sell to Illinois
6		licensees during the license period, (ii) it shall comply with
7		all of the provisions of Section 6-9 hereof with respect to
8		registration of such Illinois licensees as may be granted the
9		right to sell such brands at wholesale, and (iii) the
10		non-resident dealer shall comply with the provisions of
11		Sections 6-5 and 6-6 of this Act to the same extent that these
12		provisions apply to manufacturers.
13		(n) A brew pub license shall allow the licensee (i) to
14		manufacture beer only on the premises specified in the license,
15		(ii) to make sales of the beer manufactured on the premises or,
16		with the approval of the Commission, beer manufactured on
17		another brew pub licensed premises that is substantially owned
18		and operated by the same licensee to importing distributors,
19		distributors, and to non-licensees for use and consumption,
20		(iii) to store the beer upon the premises, and (iv) to sell and
21		offer for sale at retail from the licensed premises, provided
22		that a brew pub licensee shall not sell for off-premises
23		consumption more than 50,000 gallons per year. A person who
24		holds a brew pub license may simultaneously hold a craft brewer
25		license if he or she otherwise qualifies for the craft brewer
26		license and the craft brewer license is for a location separate

SB1739 Engrossed - 502 - LRB098 10559 AMC 40804 b
1		from the brew pub's licensed premises. A brew pub license shall
2		permit a person who has received prior approval from the
3		Commission to annually transfer no more than a total of 50,000
4		gallons of beer manufactured on premises to all other licensed
5		brew pubs that are substantially owned and operated by the same
6		person.
7		(o) A caterer retailer license shall allow the holder to
8		serve alcoholic liquors as an incidental part of a food service
9		that serves prepared meals which excludes the serving of snacks
10		as the primary meal, either on or off-site whether licensed or
11		unlicensed.
12		(p) An auction liquor license shall allow the licensee to
13		sell and offer for sale at auction wine and spirits for use or
14		consumption, or for resale by an Illinois liquor licensee in
15		accordance with provisions of this Act. An auction liquor
16		license will be issued to a person and it will permit the
17		auction liquor licensee to hold the auction anywhere in the
18		State. An auction liquor license must be obtained for each
19		auction at least 14 days in advance of the auction date.
20		(q) A special use permit license shall allow an Illinois
21		licensed retailer to transfer a portion of its alcoholic liquor
22		inventory from its retail licensed premises to the premises
23		specified in the license hereby created, and to sell or offer
24		for sale at retail, only in the premises specified in the
25		license hereby created, the transferred alcoholic liquor for
26		use or consumption, but not for resale in any form. A special

SB1739 Engrossed - 503 - LRB098 10559 AMC 40804 b
1		use permit license may be granted for the following time
2		periods: one day or less; 2 or more days to a maximum of 15 days
3		per location in any 12 month period. An applicant for the
4		special use permit license must also submit with the
5		application proof satisfactory to the State Commission that the
6		applicant will provide dram shop liability insurance to the
7		maximum limits and have local authority approval.
8		(r) A winery shipper's license shall allow a person with a
9		first-class or second-class wine manufacturer's license, a
10		first-class or second-class wine-maker's license, or a limited
11		wine manufacturer's license or who is licensed to make wine
12		under the laws of another state to ship wine made by that
13		licensee directly to a resident of this State who is 21 years
14		of age or older for that resident's personal use and not for
15		resale. Prior to receiving a winery shipper's license, an
16		applicant for the license must provide the Commission with a
17		true copy of its current license in any state in which it is
18		licensed as a manufacturer of wine. An applicant for a winery
19		shipper's license must also complete an application form that
20		provides any other information the Commission deems necessary.
21		The application form shall include an acknowledgement
22		consenting to the jurisdiction of the Commission, the Illinois
23		Department of Revenue, and the courts of this State concerning
24		the enforcement of this Act and any related laws, rules, and
25		regulations, including authorizing the Department of Revenue
26		and the Commission to conduct audits for the purpose of

SB1739 Engrossed - 504 - LRB098 10559 AMC 40804 b
1		ensuring compliance with this amendatory Act.
2		A winery shipper licensee must pay to the Department of
3		Revenue the State liquor gallonage tax under Section 8-1 for
4		all wine that is sold by the licensee and shipped to a person
5		in this State. For the purposes of Section 8-1, a winery
6		shipper licensee shall be taxed in the same manner as a
7		manufacturer of wine. A licensee who is not otherwise required
8		to register under the Retailers' Occupation Tax Act must
9		register under the Use Tax Act to collect and remit use tax to
10		the Department of Revenue for all gallons of wine that are sold
11		by the licensee and shipped to persons in this State. If a
12		licensee fails to remit the tax imposed under this Act in
13		accordance with the provisions of Article VIII of this Act, the
14		winery shipper's license shall be revoked in accordance with
15		the provisions of Article VII of this Act. If a licensee fails
16		to properly register and remit tax under the Use Tax Act or the
17		Retailers' Occupation Tax Act for all wine that is sold by the
18		winery shipper and shipped to persons in this State, the winery
19		shipper's license shall be revoked in accordance with the
20		provisions of Article VII of this Act.
21		A winery shipper licensee must collect, maintain, and
22		submit to the Commission on a semi-annual basis the total
23		number of cases per resident of wine shipped to residents of
24		this State. A winery shipper licensed under this subsection (r)
25		must comply with the requirements of Section 6-29 of this
26		amendatory Act.

SB1739 Engrossed - 505 - LRB098 10559 AMC 40804 b
1		(Source: P.A. 96-1367, eff. 7-28-10; 97-5, eff. 6-1-11; 97-455,
2		eff. 8-19-11; 97-813, eff. 7-13-12.)
3		(235 ILCS 5/6-30) (from Ch. 43, par. 144f)
4		Sec. 6-30. Notwithstanding any other provision of this Act,
5		the Illinois Gaming Board shall have exclusive authority to
6		establish the hours for sale and consumption of alcoholic
7		liquor on board a riverboat during riverboat gambling
8		excursions and in a casino conducted in accordance with the
9		Illinois Riverboat Gambling Act.
10		(Source: P.A. 87-826.)
11		Section 90-50. The Criminal Code of 2012 is amended by
12		changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
13		follows:
14		(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
15		Sec. 28-1. Gambling.
16		(a) A person commits gambling when he or she:
17		(1) knowingly plays a game of chance or skill for money
18		or other thing of value, unless excepted in subsection (b)
19		of this Section;
20		(2) knowingly makes a wager upon the result of any
21		game, contest, or any political nomination, appointment or
22		election;
23		(3) knowingly operates, keeps, owns, uses, purchases,

SB1739 Engrossed - 506 - LRB098 10559 AMC 40804 b
1		exhibits, rents, sells, bargains for the sale or lease of,
2		manufactures or distributes any gambling device;
3		(4) contracts to have or give himself or herself or
4		another the option to buy or sell, or contracts to buy or
5		sell, at a future time, any grain or other commodity
6		whatsoever, or any stock or security of any company, where
7		it is at the time of making such contract intended by both
8		parties thereto that the contract to buy or sell, or the
9		option, whenever exercised, or the contract resulting
10		therefrom, shall be settled, not by the receipt or delivery
11		of such property, but by the payment only of differences in
12		prices thereof; however, the issuance, purchase, sale,
13		exercise, endorsement or guarantee, by or through a person
14		registered with the Secretary of State pursuant to Section
15		8 of the Illinois Securities Law of 1953, or by or through
16		a person exempt from such registration under said Section
17		8, of a put, call, or other option to buy or sell
18		securities which have been registered with the Secretary of
19		State or which are exempt from such registration under
20		Section 3 of the Illinois Securities Law of 1953 is not
21		gambling within the meaning of this paragraph (4);
22		(5) knowingly owns or possesses any book, instrument or
23		apparatus by means of which bets or wagers have been, or
24		are, recorded or registered, or knowingly possesses any
25		money which he has received in the course of a bet or
26		wager;

SB1739 Engrossed - 507 - LRB098 10559 AMC 40804 b
1		(6) knowingly sells pools upon the result of any game
2		or contest of skill or chance, political nomination,
3		appointment or election;
4		(7) knowingly sets up or promotes any lottery or sells,
5		offers to sell or transfers any ticket or share for any
6		lottery;
7		(8) knowingly sets up or promotes any policy game or
8		sells, offers to sell or knowingly possesses or transfers
9		any policy ticket, slip, record, document or other similar
10		device;
11		(9) knowingly drafts, prints or publishes any lottery
12		ticket or share, or any policy ticket, slip, record,
13		document or similar device, except for such activity
14		related to lotteries, bingo games and raffles authorized by
15		and conducted in accordance with the laws of Illinois or
16		any other state or foreign government;
17		(10) knowingly advertises any lottery or policy game,
18		except for such activity related to lotteries, bingo games
19		and raffles authorized by and conducted in accordance with
20		the laws of Illinois or any other state;
21		(11) knowingly transmits information as to wagers,
22		betting odds, or changes in betting odds by telephone,
23		telegraph, radio, semaphore or similar means; or knowingly
24		installs or maintains equipment for the transmission or
25		receipt of such information; except that nothing in this
26		subdivision (11) prohibits transmission or receipt of such

SB1739 Engrossed - 508 - LRB098 10559 AMC 40804 b
1		information for use in news reporting of sporting events or
2		contests; or
3		(12) knowingly establishes, maintains, or operates an
4		Internet site that permits a person to play a game of
5		chance or skill for money or other thing of value by means
6		of the Internet or to make a wager upon the result of any
7		game, contest, political nomination, appointment, or
8		election by means of the Internet. This item (12) does not
9		apply to activities referenced in items (6) and (6.1) of
10		subsection (b) of this Section.
11		(b) Participants in any of the following activities shall
12		not be convicted of gambling:
13		(1) Agreements to compensate for loss caused by the
14		happening of chance including without limitation contracts
15		of indemnity or guaranty and life or health or accident
16		insurance.
17		(2) Offers of prizes, award or compensation to the
18		actual contestants in any bona fide contest for the
19		determination of skill, speed, strength or endurance or to
20		the owners of animals or vehicles entered in such contest.
21		(3) Pari-mutuel betting as authorized by the law of
22		this State.
23		(4) Manufacture of gambling devices, including the
24		acquisition of essential parts therefor and the assembly
25		thereof, for transportation in interstate or foreign
26		commerce to any place outside this State when such

SB1739 Engrossed - 509 - LRB098 10559 AMC 40804 b
1		transportation is not prohibited by any applicable Federal
2		law; or the manufacture, distribution, or possession of
3		video gaming terminals, as defined in the Video Gaming Act,
4		by manufacturers, distributors, and terminal operators
5		licensed to do so under the Video Gaming Act.
6		(5) The game commonly known as "bingo", when conducted
7		in accordance with the Bingo License and Tax Act.
8		(6) Lotteries when conducted by the State of Illinois
9		in accordance with the Illinois Lottery Law. This exemption
10		includes any activity conducted by the Department of
11		Revenue to sell lottery tickets pursuant to the provisions
12		of the Illinois Lottery Law and its rules.
13		(6.1) The purchase of lottery tickets through the
14		Internet for a lottery conducted by the State of Illinois
15		under the program established in Section 7.12 of the
16		Illinois Lottery Law.
17		(7) Possession of an antique slot machine that is
18		neither used nor intended to be used in the operation or
19		promotion of any unlawful gambling activity or enterprise.
20		For the purpose of this subparagraph (b)(7), an antique
21		slot machine is one manufactured 25 years ago or earlier.
22		(8) Raffles when conducted in accordance with the
23		Raffles Act.
24		(9) Charitable games when conducted in accordance with
25		the Charitable Games Act.
26		(10) Pull tabs and jar games when conducted under the

SB1739 Engrossed - 510 - LRB098 10559 AMC 40804 b
1		Illinois Pull Tabs and Jar Games Act.
2		(11) Gambling games conducted on riverboats when
3		authorized by the Illinois Riverboat Gambling Act.
4		(12) Video gaming terminal games at a licensed
5		establishment, licensed truck stop establishment, licensed
6		fraternal establishment, or licensed veterans
7		establishment when conducted in accordance with the Video
8		Gaming Act.
9		(13) Games of skill or chance where money or other
10		things of value can be won but no payment or purchase is
11		required to participate.
12		(c) Sentence.
13		Gambling is a Class A misdemeanor. A second or subsequent
14		conviction under subsections (a)(3) through (a)(12), is a Class
15		4 felony.
16		(d) Circumstantial evidence.
17		In prosecutions under this Section circumstantial evidence
18		shall have the same validity and weight as in any criminal
19		prosecution.
20		(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
21		96-1203, eff. 7-22-10; 97-1108, eff. 1-1-13.)
22		(720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
23		Sec. 28-1.1. Syndicated gambling.
24		(a) Declaration of Purpose. Recognizing the close
25		relationship between professional gambling and other organized

SB1739 Engrossed - 511 - LRB098 10559 AMC 40804 b
1		crime, it is declared to be the policy of the legislature to
2		restrain persons from engaging in the business of gambling for
3		profit in this State. This Section shall be liberally construed
4		and administered with a view to carrying out this policy.
5		(b) A person commits syndicated gambling when he or she
6		operates a "policy game" or engages in the business of
7		bookmaking.
8		(c) A person "operates a policy game" when he or she
9		knowingly uses any premises or property for the purpose of
10		receiving or knowingly does receive from what is commonly
11		called "policy":
12		(1) money from a person other than the bettor or player
13		whose bets or plays are represented by the money; or
14		(2) written "policy game" records, made or used over
15		any period of time, from a person other than the bettor or
16		player whose bets or plays are represented by the written
17		record.
18		(d) A person engages in bookmaking when he or she knowingly
19		receives or accepts more than five bets or wagers upon the
20		result of any trials or contests of skill, speed or power of
21		endurance or upon any lot, chance, casualty, unknown or
22		contingent event whatsoever, which bets or wagers shall be of
23		such size that the total of the amounts of money paid or
24		promised to be paid to the bookmaker on account thereof shall
25		exceed $2,000. Bookmaking is the receiving or accepting of bets
26		or wagers regardless of the form or manner in which the

SB1739 Engrossed - 512 - LRB098 10559 AMC 40804 b
1		bookmaker records them.
2		(e) Participants in any of the following activities shall
3		not be convicted of syndicated gambling:
4		(1) Agreements to compensate for loss caused by the
5		happening of chance including without limitation contracts
6		of indemnity or guaranty and life or health or accident
7		insurance;
8		(2) Offers of prizes, award or compensation to the
9		actual contestants in any bona fide contest for the
10		determination of skill, speed, strength or endurance or to
11		the owners of animals or vehicles entered in the contest;
12		(3) Pari-mutuel betting as authorized by law of this
13		State;
14		(4) Manufacture of gambling devices, including the
15		acquisition of essential parts therefor and the assembly
16		thereof, for transportation in interstate or foreign
17		commerce to any place outside this State when the
18		transportation is not prohibited by any applicable Federal
19		law;
20		(5) Raffles when conducted in accordance with the
21		Raffles Act;
22		(6) Gambling games conducted on riverboats, in
23		casinos, or at electronic gaming facilities when
24		authorized by the Illinois Riverboat Gambling Act; and
25		(7) Video gaming terminal games at a licensed
26		establishment, licensed truck stop establishment, licensed

SB1739 Engrossed - 513 - LRB098 10559 AMC 40804 b
1		fraternal establishment, or licensed veterans
2		establishment when conducted in accordance with the Video
3		Gaming Act.
4		(f) Sentence. Syndicated gambling is a Class 3 felony.
5		(Source: P.A. 96-34, eff. 7-13-09; 97-1108, eff. 1-1-13.)
6		(720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
7		Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
8		any real estate, vehicle, boat or any other property whatsoever
9		used for the purposes of gambling other than gambling conducted
10		in the manner authorized by the Illinois Riverboat Gambling Act
11		or the Video Gaming Act. Any person who knowingly permits any
12		premises or property owned or occupied by him or under his
13		control to be used as a gambling place commits a Class A
14		misdemeanor. Each subsequent offense is a Class 4 felony. When
15		any premises is determined by the circuit court to be a
16		gambling place:
17		(a) Such premises is a public nuisance and may be proceeded
18		against as such, and
19		(b) All licenses, permits or certificates issued by the
20		State of Illinois or any subdivision or public agency thereof
21		authorizing the serving of food or liquor on such premises
22		shall be void; and no license, permit or certificate so
23		cancelled shall be reissued for such premises for a period of
24		60 days thereafter; nor shall any person convicted of keeping a
25		gambling place be reissued such license for one year from his

SB1739 Engrossed - 514 - LRB098 10559 AMC 40804 b
1		conviction and, after a second conviction of keeping a gambling
2		place, any such person shall not be reissued such license, and
3		(c) Such premises of any person who knowingly permits
4		thereon a violation of any Section of this Article shall be
5		held liable for, and may be sold to pay any unsatisfied
6		judgment that may be recovered and any unsatisfied fine that
7		may be levied under any Section of this Article.
8		(Source: P.A. 96-34, eff. 7-13-09.)
9		(720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
10		Sec. 28-5. Seizure of gambling devices and gambling funds.
11		(a) Every device designed for gambling which is incapable
12		of lawful use or every device used unlawfully for gambling
13		shall be considered a "gambling device", and shall be subject
14		to seizure, confiscation and destruction by the Department of
15		State Police or by any municipal, or other local authority,
16		within whose jurisdiction the same may be found. As used in
17		this Section, a "gambling device" includes any slot machine,
18		and includes any machine or device constructed for the
19		reception of money or other thing of value and so constructed
20		as to return, or to cause someone to return, on chance to the
21		player thereof money, property or a right to receive money or
22		property. With the exception of any device designed for
23		gambling which is incapable of lawful use, no gambling device
24		shall be forfeited or destroyed unless an individual with a
25		property interest in said device knows of the unlawful use of

SB1739 Engrossed - 515 - LRB098 10559 AMC 40804 b
1		the device.
2		(b) Every gambling device shall be seized and forfeited to
3		the county wherein such seizure occurs. Any money or other
4		thing of value integrally related to acts of gambling shall be
5		seized and forfeited to the county wherein such seizure occurs.
6		(c) If, within 60 days after any seizure pursuant to
7		subparagraph (b) of this Section, a person having any property
8		interest in the seized property is charged with an offense, the
9		court which renders judgment upon such charge shall, within 30
10		days after such judgment, conduct a forfeiture hearing to
11		determine whether such property was a gambling device at the
12		time of seizure. Such hearing shall be commenced by a written
13		petition by the State, including material allegations of fact,
14		the name and address of every person determined by the State to
15		have any property interest in the seized property, a
16		representation that written notice of the date, time and place
17		of such hearing has been mailed to every such person by
18		certified mail at least 10 days before such date, and a request
19		for forfeiture. Every such person may appear as a party and
20		present evidence at such hearing. The quantum of proof required
21		shall be a preponderance of the evidence, and the burden of
22		proof shall be on the State. If the court determines that the
23		seized property was a gambling device at the time of seizure,
24		an order of forfeiture and disposition of the seized property
25		shall be entered: a gambling device shall be received by the
26		State's Attorney, who shall effect its destruction, except that

SB1739 Engrossed - 516 - LRB098 10559 AMC 40804 b
1		valuable parts thereof may be liquidated and the resultant
2		money shall be deposited in the general fund of the county
3		wherein such seizure occurred; money and other things of value
4		shall be received by the State's Attorney and, upon
5		liquidation, shall be deposited in the general fund of the
6		county wherein such seizure occurred. However, in the event
7		that a defendant raises the defense that the seized slot
8		machine is an antique slot machine described in subparagraph
9		(b) (7) of Section 28-1 of this Code and therefore he is exempt
10		from the charge of a gambling activity participant, the seized
11		antique slot machine shall not be destroyed or otherwise
12		altered until a final determination is made by the Court as to
13		whether it is such an antique slot machine. Upon a final
14		determination by the Court of this question in favor of the
15		defendant, such slot machine shall be immediately returned to
16		the defendant. Such order of forfeiture and disposition shall,
17		for the purposes of appeal, be a final order and judgment in a
18		civil proceeding.
19		(d) If a seizure pursuant to subparagraph (b) of this
20		Section is not followed by a charge pursuant to subparagraph
21		(c) of this Section, or if the prosecution of such charge is
22		permanently terminated or indefinitely discontinued without
23		any judgment of conviction or acquittal (1) the State's
24		Attorney shall commence an in rem proceeding for the forfeiture
25		and destruction of a gambling device, or for the forfeiture and
26		deposit in the general fund of the county of any seized money

SB1739 Engrossed - 517 - LRB098 10559 AMC 40804 b
1		or other things of value, or both, in the circuit court and (2)
2		any person having any property interest in such seized gambling
3		device, money or other thing of value may commence separate
4		civil proceedings in the manner provided by law.
5		(e) Any gambling device displayed for sale to a riverboat
6		gambling operation, casino gambling operation, or electronic
7		gaming facility or used to train occupational licensees of a
8		riverboat gambling operation, casino gambling operation, or
9		electronic gaming facility as authorized under the Illinois
10		Riverboat Gambling Act is exempt from seizure under this
11		Section.
12		(f) Any gambling equipment, devices and supplies provided
13		by a licensed supplier in accordance with the Illinois
14		Riverboat Gambling Act which are removed from a the riverboat,
15		casino, or electronic gaming facility for repair are exempt
16		from seizure under this Section.
17		(Source: P.A. 87-826.)
18		(720 ILCS 5/28-7) (from Ch. 38, par. 28-7)
19		Sec. 28-7. Gambling contracts void.
20		(a) All promises, notes, bills, bonds, covenants,
21		contracts, agreements, judgments, mortgages, or other
22		securities or conveyances made, given, granted, drawn, or
23		entered into, or executed by any person whatsoever, where the
24		whole or any part of the consideration thereof is for any money
25		or thing of value, won or obtained in violation of any Section

SB1739 Engrossed - 518 - LRB098 10559 AMC 40804 b
1		of this Article are null and void.
2		(b) Any obligation void under this Section may be set aside
3		and vacated by any court of competent jurisdiction, upon a
4		complaint filed for that purpose, by the person so granting,
5		giving, entering into, or executing the same, or by his
6		executors or administrators, or by any creditor, heir, legatee,
7		purchaser or other person interested therein; or if a judgment,
8		the same may be set aside on motion of any person stated above,
9		on due notice thereof given.
10		(c) No assignment of any obligation void under this Section
11		may in any manner affect the defense of the person giving,
12		granting, drawing, entering into or executing such obligation,
13		or the remedies of any person interested therein.
14		(d) This Section shall not prevent a licensed owner of a
15		riverboat gambling operation, casino gambling operation, or an
16		electronic gaming licensee under the Illinois Gambling Act and
17		the Illinois Horse Racing Act of 1975 from instituting a cause
18		of action to collect any amount due and owing under an
19		extension of credit to a riverboat gambling patron as
20		authorized under Section 11.1 of the Illinois Riverboat
21		Gambling Act.
22		(Source: P.A. 87-826.)
23		Section 90-55. The Eminent Domain Act is amended by adding
24		Section 15-5-47 as follows:

SB1739 Engrossed - 519 - LRB098 10559 AMC 40804 b
1		(735 ILCS 30/15-5-47 new)
2		Sec. 15-5-47. Eminent domain powers in new Acts. The
3		following provisions of law may include express grants of the
4		power to acquire property by condemnation or eminent domain:
5		Chicago Casino Development Authority Act; City of Chicago; for
6		the purposes of the Act.
7		Section 90-60. The Payday Loan Reform Act is amended by
8		changing Section 3-5 as follows:
9		(815 ILCS 122/3-5)
10		Sec. 3-5. Licensure.
11		(a) A license to make a payday loan shall state the
12		address, including city and state, at which the business is to
13		be conducted and shall state fully the name of the licensee.
14		The license shall be conspicuously posted in the place of
15		business of the licensee and shall not be transferable or
16		assignable.
17		(b) An application for a license shall be in writing and in
18		a form prescribed by the Secretary. The Secretary may not issue
19		a payday loan license unless and until the following findings
20		are made:
21		(1) that the financial responsibility, experience,
22		character, and general fitness of the applicant are such as
23		to command the confidence of the public and to warrant the

SB1739 Engrossed - 520 - LRB098 10559 AMC 40804 b
1		belief that the business will be operated lawfully and
2		fairly and within the provisions and purposes of this Act;
3		and
4		(2) that the applicant has submitted such other
5		information as the Secretary may deem necessary.
6		(c) A license shall be issued for no longer than one year,
7		and no renewal of a license may be provided if a licensee has
8		substantially violated this Act and has not cured the violation
9		to the satisfaction of the Department.
10		(d) A licensee shall appoint, in writing, the Secretary as
11		attorney-in-fact upon whom all lawful process against the
12		licensee may be served with the same legal force and validity
13		as if served on the licensee. A copy of the written
14		appointment, duly certified, shall be filed in the office of
15		the Secretary, and a copy thereof certified by the Secretary
16		shall be sufficient evidence to subject a licensee to
17		jurisdiction in a court of law. This appointment shall remain
18		in effect while any liability remains outstanding in this State
19		against the licensee. When summons is served upon the Secretary
20		as attorney-in-fact for a licensee, the Secretary shall
21		immediately notify the licensee by registered mail, enclosing
22		the summons and specifying the hour and day of service.
23		(e) A licensee must pay an annual fee of $1,000. In
24		addition to the license fee, the reasonable expense of any
25		examination or hearing by the Secretary under any provisions of
26		this Act shall be borne by the licensee. If a licensee fails to

SB1739 Engrossed - 521 - LRB098 10559 AMC 40804 b
1		renew its license by December 31, its license shall
2		automatically expire; however, the Secretary, in his or her
3		discretion, may reinstate an expired license upon:
4		(1) payment of the annual fee within 30 days of the
5		date of expiration; and
6		(2) proof of good cause for failure to renew.
7		(f) Not more than one place of business shall be maintained
8		under the same license, but the Secretary may issue more than
9		one license to the same licensee upon compliance with all the
10		provisions of this Act governing issuance of a single license.
11		The location, except those locations already in existence as of
12		June 1, 2005, may not be within one mile of a horse race track
13		subject to the Illinois Horse Racing Act of 1975, within one
14		mile of a facility at which gambling is conducted under the
15		Illinois Riverboat Gambling Act, within one mile of the
16		location at which a riverboat subject to the Illinois Riverboat
17		Gambling Act docks, or within one mile of any State of Illinois
18		or United States military base or naval installation.
19		(g) No licensee shall conduct the business of making loans
20		under this Act within any office, suite, room, or place of
21		business in which (1) any loans are offered or made under the
22		Consumer Installment Loan Act other than title secured loans as
23		defined in subsection (a) of Section 15 of the Consumer
24		Installment Loan Act and governed by Title 38, Section 110.330
25		of the Illinois Administrative Code or (2) any other business
26		is solicited or engaged in unless the other business is

SB1739 Engrossed - 522 - LRB098 10559 AMC 40804 b
1		licensed by the Department or, in the opinion of the Secretary,
2		the other business would not be contrary to the best interests
3		of consumers and is authorized by the Secretary in writing.
4		(g-5) Notwithstanding subsection (g) of this Section, a
5		licensee may obtain a license under the Consumer Installment
6		Loan Act (CILA) for the exclusive purpose and use of making
7		title secured loans, as defined in subsection (a) of Section 15
8		of CILA and governed by Title 38, Section 110.300 of the
9		Illinois Administrative Code. A licensee may continue to
10		service Consumer Installment Loan Act loans that were
11		outstanding as of the effective date of this amendatory Act of
12		the 96th General Assembly.
13		(h) The Secretary shall maintain a list of licensees that
14		shall be available to interested consumers and lenders and the
15		public. The Secretary shall maintain a toll-free number whereby
16		consumers may obtain information about licensees. The
17		Secretary shall also establish a complaint process under which
18		an aggrieved consumer may file a complaint against a licensee
19		or non-licensee who violates any provision of this Act.
20		(Source: P.A. 96-936, eff. 3-21-11.)
21		Section 90-65. The Travel Promotion Consumer Protection
22		Act is amended by changing Section 2 as follows:
23		(815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)
24		Sec. 2. Definitions.

SB1739 Engrossed - 523 - LRB098 10559 AMC 40804 b
1		(a) "Travel promoter" means a person, including a tour
2		operator, who sells, provides, furnishes, contracts for,
3		arranges or advertises that he or she will arrange wholesale or
4		retail transportation by air, land, sea or navigable stream,
5		either separately or in conjunction with other services.
6		"Travel promoter" does not include (1) an air carrier; (2) a
7		sea carrier; (3) an officially appointed agent of an air
8		carrier who is a member in good standing of the Airline
9		Reporting Corporation; (4) a travel promoter who has in force
10		$1,000,000 or more of liability insurance coverage for
11		professional errors and omissions and a surety bond or
12		equivalent surety in the amount of $100,000 or more for the
13		benefit of consumers in the event of a bankruptcy on the part
14		of the travel promoter; or (5) a riverboat subject to
15		regulation under the Illinois Riverboat Gambling Act.
16		(b) "Advertise" means to make any representation in the
17		solicitation of passengers and includes communication with
18		other members of the same partnership, corporation, joint
19		venture, association, organization, group or other entity.
20		(c) "Passenger" means a person on whose behalf money or
21		other consideration has been given or is to be given to
22		another, including another member of the same partnership,
23		corporation, joint venture, association, organization, group
24		or other entity, for travel.
25		(d) "Ticket or voucher" means a writing or combination of
26		writings which is itself good and sufficient to obtain

SB1739 Engrossed - 524 - LRB098 10559 AMC 40804 b
1		transportation and other services for which the passenger has
2		contracted.
3		(Source: P.A. 91-357, eff. 7-29-99.)
4		(30 ILCS 105/5.490 rep.)
5		Section 90-70. The State Finance Act is amended by
6		repealing Section 5.490.
7		(230 ILCS 5/54 rep.)
8		Section 90-75. The Illinois Horse Racing Act of 1975 is
9		amended by repealing Section 54.
10		ARTICLE 99.
11		Section 99-97. Severability. The provisions of this Act are
12		severable under Section 1.31 of the Statute on Statutes.