Rep. Chad Hays

Filed: 3/23/2017

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1 AMENDMENT TO HOUSE BILL 2498

2 AMENDMENT NO. ______. Amend House Bill 2498 by replacing

3 everything after the enacting clause with the following:

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 the City's pension obligation in accordance with Public

14 Act 99-506.

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

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

2 recognized that it will do so successfully only if public

3 confidence and trust in the credibility and integrity of the

4 gambling operations and the regulatory process is maintained.

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

6 Illinois Gaming Board to strictly regulate the facilities,

7 persons, associations, and practices related to gambling

8 operations pursuant to the police powers of the State,

9 including comprehensive law enforcement supervision.

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

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

12 regulates every other casino in Illinois.

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

14 "Authority" means the Chicago Casino Development Authority

15 created by this Act.

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

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

18 at which lawful gambling is authorized and licensed as provided

19 in the Illinois Gambling Act.

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

21 Act to govern and control the Authority.

22 "Casino management contract" means a legally binding

23 agreement between the Authority and a casino operator licensee

24 to operate or manage a casino.

25 "Casino operator licensee" means any person or entity

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1 selected by the Authority and approved and licensed by the

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

3 Chicago pursuant to a casino management contract.

4 "City" means the City of Chicago.

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

6 limited liability company, trust, or unincorporated

7 association.

8 "Executive director" means the person appointed by the

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

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

11 the Illinois Gambling Act.

12 "Mayor" means the Mayor of the City.

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

14 created a political subdivision, unit of local government with

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

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

17 Development Authority.

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

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

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

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

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

23 However, the Authority shall contract with a casino operator

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

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

2 Authority may contract pursuant to the procedures set forth in

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

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

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

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

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

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

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

10 operator licensee are subject to the Illinois Gambling Act and

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

12 the Authority and the casino operator licensee in a manner

13 consistent with that of other owners licensees under the

14 Illinois Gambling Act. Nothing in this Act shall confer

15 regulatory authority on the Chicago Casino Development

16 Authority. The Illinois Gaming Board shall have exclusive

17 regulatory authority over all gambling operations governed by

18 this Act.

19 Section 1-15. Casino Board.

20 (a) The governing and administrative powers of the

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

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

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

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

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

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1 Each Casino Board appointee shall be subject to a

2 preliminary background investigation completed by the Gaming

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

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

5 determines that there is a substantial likelihood that it will

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

7 Board (applying the same standards for suitability to the

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

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

10 Gaming Board shall provide a written notice of such

11 determination to the appointee and the Corporation Counsel of

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

13 such notice is delivered with respect to a particular

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

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

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

17 the Casino Board and shall participate as a Casino Board

18 member.

19 Each appointee shall be subject to a full background

20 investigation and final approval by the Gaming Board prior to

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

22 full background investigation of the Casino Board appointee

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

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

25 does not complete its background investigation within the

26 3-month period, then the Gaming Board shall give a written

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

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

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

4 determination and set forth a reasonable time when such

5 determination shall be made.

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

7 the Authority meets and shall be entitled to reimbursement of

8 reasonable expenses incurred in the performance of their

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

10 of secretary-treasurer may also receive compensation for

11 services provided as that officer.

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

13 removal.

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

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

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

17 expiring July 1 three years following final approval by the

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

19 1 five years following final approval by the Gaming Board.

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

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

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

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

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

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

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1 qualified. Nothing shall preclude a member from serving

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

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

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

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

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

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

8 Section.

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

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

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

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

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

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

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

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

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

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

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

20 or any political organization, but does not include activities

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

22 legislative, or administrative action, as those terms are

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

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

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

26 and public service functions.

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

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

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

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

5 has completed its preliminary background investigation of at

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

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

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

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

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

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

12 the Casino Board shall constitute a quorum. All substantive

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

14 affirmative vote of a majority of the members.

15 Section 1-30. Executive director; officers.

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

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

18 The executive director shall be subject to a preliminary

19 background investigation to be completed by the Gaming Board

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

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

22 determines that there is a substantial likelihood that it will

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

24 position (applying the same standards for suitability as the

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

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

3 provide a written notice of such determination to the appointee

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

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

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

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

8 application to the Gaming Board, the executive director shall

9 commence all duties as the acting executive director of the

10 Authority.

11 The executive director shall be subject to a full

12 background investigation and final approval by the Gaming Board

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

14 complete its full background investigation of the executive

15 director within 3 months after the date of the executive

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

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

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

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

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

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

22 reached a final determination and set forth a reasonable time

23 when such determination shall be made.

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

25 executive director. Subject to the general control of the

26 Casino Board, the executive director shall be responsible for

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

2 the Authority. The executive director shall direct the

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

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

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

6 and independent contractors, consultants, engineers,

7 architects, accountants, attorneys, financial experts,

8 construction experts and personnel, superintendents, managers,

9 and other personnel appointed or employed pursuant to this Act

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

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

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

13 Authority to do all of the following:

14 (1) Direct and supervise the administrative affairs

15 and activities of the Authority in accordance with its

16 rules, regulations, and policies.

17 (2) Attend meetings of the Casino Board.

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

19 Board.

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

21 payments, and allowable expenses of the Casino Board and

22 its employees and consultants.

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

24 concerning the terms and conditions of any casino

25 management contract.

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

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1 requires for carrying out the provisions of this Act.

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

3 office and not hold any other office or employment.

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

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

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

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

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

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

10 (1) Adopt and alter an official seal.

11 (2) Establish and change its fiscal year.

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

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

14 to which it is a party.

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

16 regulations consistent with the furtherance of the powers

17 and duties provided for.

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

19 such other offices as the Casino Board may designate.

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

21 permanent casino.

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

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

24 or independent contractors, consultants, engineers,

25 architects, accountants, attorneys, financial experts,

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1 construction experts and personnel, superintendents,

2 managers and other professional personnel, and such other

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

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

5 the Authority shall be hired pursuant to and in accordance

6 with the rules and policies the Authority may adopt.

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

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

9 maintain grounds, buildings, and facilities to carry out

10 its corporate purposes and duties.

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

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

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

14 rules of the Gaming Board as consistently applied to all

15 owners licensees under the Illinois Gambling Act, provided

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

17 construction, and outfitting of a temporary casino prior to

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

19 executive director and the members of the Casino Board and

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

21 owners license. Provided further that the entities

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

23 outfitting of the temporary casino shall be subject to a

24 preliminary background investigation to be completed by

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

26 provided the identities of the entities. If the Gaming

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1 Board determines that there is a substantial likelihood

2 that the entities are not suitable or acceptable to perform

3 their respective functions, then the Gaming Board shall

4 immediately provide notice of that determination to the

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

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

7 identifying such entities is provided to the Gaming Board,

8 such entities shall be permitted to commence the services

9 contemplated for the design, construction, and outfitting

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

11 Authority open a casino until after the Gaming Board has

12 finally approved the Authority's executive director and

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

14 issued the Authority's owners license and the casino

15 operator's casino operator license.

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

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

18 (11) Negotiate and enter into intergovernmental

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

20 other units of local government, in furtherance of the

21 powers and duties of the Casino Board.

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

23 purposes or as otherwise specified in this Act.

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

25 for any corporate purpose, including, without limitation,

26 working capital for its operations, reserve funds, or

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

2 encumber the property or funds of the Authority and to

3 contract with or engage the services of any person in

4 connection with any financing, including financial

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

6 enter into reimbursement agreements with this person or

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

8 the person or entity.

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

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

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

12 property to the Authority.

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

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

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

16 participate in joint self-insurance pools or entities to

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

18 indemnification of its officers, members, employees,

19 contractors, or agents against any and all risks.

20 (17) Exercise all the corporate powers granted

21 Illinois corporations under the Business Corporation Act

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

23 with those of a body politic and municipal corporation.

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

25 the powers granted by this Act.

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

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1 requirements imposed on other owners licensees to conduct all

2 background investigations required under the Illinois Gambling

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

4 also extend to senior legal, financial, and administrative

5 staff of the Authority.

6 Section 1-32. Ethical conduct.

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

8 must carry out their duties and responsibilities in such a

9 manner as to promote and preserve public trust and confidence

10 in the integrity and conduct of gaming.

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

12 duties, Casino Board members and employees of the Authority

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

14 or in an electronic gaming facility licensed by the Illinois

15 Gaming Board or engage in legalized gambling in any

16 establishment identified by Gaming Board action that, in the

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

18 conflict of interest.

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

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

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

22 influence for himself or herself or others.

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

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

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

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1 official duties. Employees may engage in other gainful

2 employment so long as that employment does not interfere or

3 conflict with their duties. Such employment must be disclosed

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

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

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

7 employment, communications, or any activity identified by the

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

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

10 a conflict of interest.

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

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

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

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

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

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

17 Authority. This prohibition shall extend to the holding or

18 acquisition of an interest in any entity identified by the

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

20 either entity, could represent the potential for or the

21 appearance of a financial interest. The holding or acquisition

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

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

24 the Gaming Board may identify specific investments or funds

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

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

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1 of interest.

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

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

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

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

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

7 doing business with the Authority.

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

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

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

11 employment, knowingly accept employment or receive

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

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

14 Authority that resulted in contracts with an aggregate value of

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

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

17 or its parent or affiliate.

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

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

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

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

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

23 entity in any contract or subcontract for the performance of

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

25 the holding or acquisition of an interest in any entity

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

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

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

3 acquisition of an interest in such entities through an indirect

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

5 except that the Gaming Board may identify specific investments

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

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

8 a conflict of interest.

9 (j) 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 accept any gift, gratuity, service,

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

13 exception of unsolicited items of an incidental nature, from

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

15 Authority.

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

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

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

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

20 immediately after termination of employment, knowingly accept

21 employment or receive compensation or fees for services from a

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

23 in business with the Authority that resulted in contracts with

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

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

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

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1 entity, or its parent or affiliate.

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

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

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

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

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

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

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

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

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

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

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

13 shall, within one year immediately preceding appointment by the

14 Mayor or employment, have been employed or received

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

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

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

18 the Illinois Gambling Act.

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

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

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

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

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

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

25 the official within 30 days after the communication and shall

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

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

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

3 brief summary of the communication, the action requested or

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

5 the person making the response, and any other pertinent

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

7 digital, then the entire communication shall be disclosed.

8 Public disclosure of the written summary provided to the

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

10 exemptions provided under Section 7 of the Freedom of

11 Information Act.

12 This subsection (n) shall not apply to communications

13 regarding traffic, law enforcement, security, environmental

14 issues, City services, transportation, or other routine

15 matters concerning the ordinary operations of the casino.

16 (o) For purposes of this Section:

17 "Ordinary operations" means operations relating to the

18 casino facility other than the conduct of gambling activities.

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

20 renewal, and other processes associated with City permits and

21 licenses.

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

23 City who provide services to the Authority or otherwise

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

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

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

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1 4 felony.

2 Section 1-45. Casino management contracts.

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

4 rules, the Casino Board shall develop and administer a

5 competitive sealed bidding process for the selection of a

6 potential casino operator licensee to develop or operate a

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

8 more requests for proposals. The Casino Board may establish

9 minimum financial and investment requirements to determine the

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

11 requests for proposals, and may establish and consider such

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

13 impose a reasonable fee upon persons who respond to requests

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

15 costs in preparing and issuing the requests and reviewing the

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

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

18 opportunity to review the competitive bidding process

19 established by the Casino Board. During the competitive bidding

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

21 of the process and the responses received in connection with

22 the Casino Board's requests for proposals.

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

24 submitting bids and proposals has passed, the Casino Board

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

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1 the Casino Board shall not be required to disclose any

2 information which would be exempt from disclosure under Section

3 7 of the Freedom of Information Act. Thereafter, the Casino

4 Board shall evaluate the responses to its requests for

5 proposals and the ability of all persons or entities responding

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

7 Act and any relevant provisions of the Illinois Gambling Act

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

9 requests for proposals.

10 (c) After reviewing proposals and selecting a successful

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

12 contract with the successful bidder authorizing the operation

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

14 background investigation and approval by the Gaming Board. The

15 Gaming Board shall complete its background investigation and

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

17 that the proposed casino operator submits its application to

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

19 background investigation and approval within the 6-month

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

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

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

23 determination and when it reasonably expects to make a final

24 determination. Validity of the casino management contract is

25 contingent upon the issuance of a casino operator license to

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

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

2 executed casino management contract to the Gaming Board.

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

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

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

6 the Casino Board, the Authority may conduct gaming operations

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

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

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

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

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

12 complete the permanent facility. The Gaming Board may grant

13 additional extensions following further public hearings. Each

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

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

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

17 for a casino management contract or an executed casino

18 management contract must be transmitted to the State and

19 deposited into the Gaming Facilities Fee Revenue Fund. The

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

21 the Authority as reimbursement for its costs in preparing or

22 issuing the requests for proposals and reviewing the proposals

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

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

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

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

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

2 the Illinois Gambling Act or any other financial obligation of

3 the Authority.

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

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

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

7 Information Act.

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

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

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

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

12 casino operator licensee pursuant to a casino management

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

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

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

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

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

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

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

20 pension payments in accordance with Public Act 99-506.

21 Section 1-60. Auditor General.

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

23 Authority shall submit to the Auditor General a certification

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1 that:

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

3 (2) scheduled annual payments of principal and

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

5 Section 1-75 of this Act;

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

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

8 deposits to funds and accounts established with respect to

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

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

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

12 The Authority also shall submit to the Auditor General its

13 projections on revenues to be generated and pledged to

14 repayment of the bonds as scheduled and such other information

15 as the Auditor General may reasonably request.

16 The Auditor General shall examine the certifications and

17 information submitted and submit a report to the Authority and

18 the Gaming Board indicating whether the required

19 certifications, projections, and other information have been

20 submitted by the Authority and whether the assumptions

21 underlying the projections are not unreasonable in the

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

23 than 60 days after receiving the information required to be

24 submitted by the Authority.

25 The Auditor General shall submit a bill to the Authority

26 for costs associated with the examinations and report required

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

2 manner.

3 (b) The Authority shall enter into an intergovernmental

4 agreement with the Auditor General authorizing the Auditor

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

6 the Authority performed by the Authority's certified public

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

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

9 licensee. The Auditor General shall provide the Authority and

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

11 her Internet website such portions of the audit or other

12 financial information as generally would be made publicly

13 available for other owners licensees under the Illinois

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

15 Authority for costs associated with the review and the audit

16 required under this Section, which costs shall not exceed

17 $100,000, and the Authority shall reimburse the Auditor General

18 for such costs in a timely manner.

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

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

21 Authority's utilization of minority-owned business enterprises

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

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

24 development and construction of the casino as authorized under

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

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1 work with the Advisory Committee in accumulating necessary

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

3 to the General Assembly and to the City.

4 The Committee shall consist of 9 members as provided in

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

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

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

8 General Assembly. The Advisory Committee shall meet

9 periodically and shall report the information to the Mayor of

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

11 year.

12 The Advisory Committee shall be dissolved on the date that

13 casino gambling operations are first conducted at a permanent

14 facility under the license authorized under Section 7 of the

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

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

17 in Section 2 of the Business Enterprise for Minorities,

18 Females, and Persons with Disabilities Act.

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

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

21 acquire, by eminent domain or by condemnation proceedings in

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

23 property or interests in real or personal property located in

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

25 acquired. The acquisition of property under this Section is

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1 declared to be for a public use.

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

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

4 Board, the casino facilities and operations therein shall be

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

6 construction, development, and operation of the casino shall

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

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

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

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

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

12 Gaming Board shall be responsible for the investigation for and

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

14 Gambling Act.

15 Section 1-75. Borrowing.

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

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

18 to provide funds for land acquisition, site assembly and

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

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

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

22 off-site infrastructure improvements required in connection

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

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

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

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

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

4 credit enhancement, and other legal expenses of the

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

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

7 certificates, refunding bonds, or any other evidence of

8 obligation for borrowed money issued under this Section. Bonds

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

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

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

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

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

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

15 bid proceeds, charges, lease payments, payments required

16 pursuant to any casino management contract or other revenues

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

18 payments by financial institutions, insurance companies, or

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

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

21 from funds or accounts maintained pursuant to a bond resolution

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

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

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

25 pursuant to any guaranty agreement.

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

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

2 between the Authority and a corporate trustee or trustees,

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

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

5 following requirements:

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

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

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

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

10 resolution or indenture authorizing the issuance of such

11 bonds.

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

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

14 the resolution or indenture authorizing the issuance of

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

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

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

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

19 sale.

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

21 denominations and form, including book entry form, either

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

23 privileges as to exchange, transfer or conversion, and

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

25 resolution or trust indenture may provide.

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

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1 United States at a designated place.

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

3 payment, redemption, refunding, or refinancing that the

4 resolution or trust indenture provides.

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

6 signatures of the officers of the Authority designated by

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

8 for one who has ceased to hold office.

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

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

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

12 provisions of the Local Government Debt Reform Act.

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

14 respect to contracts relating to underwriters, bond counsel,

15 financial advisors, and accountants. The program shall include

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

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

18 businesses and female-owned businesses as defined in the

19 Business Enterprise for Minorities, Females, and Persons with

20 Disabilities Act. The Authority shall conduct outreach to

21 minority-owned businesses and female-owned businesses.

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

23 in periodicals and newspapers, mailings, and other appropriate

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

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

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

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

2 fees.

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

4 Gaming Board regarding pledging of interests in holders of

5 owners licenses, any resolution or trust indenture may contain

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

7 of the bonds as to the following:

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

9 investment, or disposition of revenues of the Authority or

10 proceeds or benefits of any contract, including without

11 limitation any rights in any casino management contract.

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

13 service reserves, replacement or operating reserves, cost

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

15 investment, and disposition thereof.

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

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

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

19 applied or made.

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

21 terms upon which additional bonds may be issued and

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

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

24 bonds.

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

26 of outstanding bonds.

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

2 contract with bondholders may be altered or amended and the

3 amount of bonds and holders of which must consent thereto

4 and the manner in which consent shall be given.

5 (7) Defining the acts or omissions that shall

6 constitute a default in the duties of the Authority to

7 holders of bonds and providing the rights or remedies of

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

9 provisions restricting individual rights of action by

10 bondholders.

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

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

13 benefit of bondholders.

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

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

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

17 bonds.

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

19 with the provisions of the Local Government Credit Enhancement

20 Act.

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

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

23 obligations under any casino management contract shall be valid

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

25 and receipts pledged shall immediately be subject to the lien

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

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

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

3 otherwise against the Authority, irrespective of whether the

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

5 agreement or financing statement, continuation statement, or

6 other instrument adopted or entered into by the Authority need

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

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

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

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

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

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

13 payment of principal and interest thereon, and any redemption

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

15 be considered outstanding for the purposes of this subsection.

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

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

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

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

20 the Authority may not require the application of State revenues

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

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

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

24 official statements on the bonds.

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

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

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

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

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

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

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

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

7 Authority is authorized to include this pledge and agreement in

8 any contract with the owners of bonds issued under this

9 Section.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

24 agreements or contracts with any necessary or appropriate

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

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

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

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

4 limitation, agreements or contracts commonly known as

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

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

7 agreements or contracts providing for payments based on levels

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

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

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

11 or contract shall be solely an obligation or indebtedness of

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

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

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

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

16 Illinois, all governmental entities, all public officers,

17 banks, bankers, trust companies, savings banks and

18 institutions, building and loan associations, savings and loan

19 associations, investment companies, and other persons carrying

20 on a banking business, insurance companies, insurance

21 associations, and other persons carrying on an insurance

22 business, and all executors, administrators, guardians,

23 trustees, and other fiduciaries may legally invest any sinking

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

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

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1 this Section shall be construed as relieving any person or

2 entity from any duty of exercising reasonable care in selecting

3 securities for purchase or investment.

4 Section 1-105. Budgets and reporting.

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

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

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

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

9 estimated revenues and shall provide for payment of its

10 obligations and estimated expenditures for the fiscal year,

11 including, without limitation, expenditures for

12 administration, operation, maintenance and repairs, debt

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

14 projects.

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

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

17 accountants selected by the Casino Board in accordance with the

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

19 website such financial information as is required to be posted

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

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

22 an annual report setting forth information concerning its

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

24 of the casino. The annual report shall include financial

25 information of the Authority consistent with that which is

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1 required for all other owners licensees under the Illinois

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

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

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

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

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

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

8 120 days after the end of the Authority's fiscal year, as soon

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

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

11 Government Forecasting and Accountability.

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

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

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

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

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

17 2 officers or employees designated by the Casino Board.

18 Notwithstanding any other provision of this Section, the Casino

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

20 employee of the Authority to authorize the wire transfer of

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

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

23 employee benefits-related expenses.

24 No bank or savings and loan association shall receive

25 public funds as permitted by this Section unless it has

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1 complied with the requirements established pursuant to Section

2 6 of the Public Funds Investment Act.

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

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

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

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

7 signature shall nevertheless be valid and sufficient for all

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

9 office until delivery thereof.

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

11 operator licensee; disclosure requirements.

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

13 contracts with the Authority or casino operator licensee shall

14 disclose the identity of all officers and directors and every

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

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

17 total distributable income of any corporation having any

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

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

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

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

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

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

24 the corporation shall fulfill the disclosure statement

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

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1 contractor shall notify the Authority of any changes in

2 officers, directors, ownership, or individuals having a

3 beneficial interest of more than 1%. Notwithstanding the

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

5 rules in connection with contractors for contracts with the

6 Authority or the casino operator licensee.

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

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

9 period to exceed one year shall disclose all political

10 contributions of the bidder, respondent, offeror, or

11 contractor and any affiliated person or entity. Disclosure

12 shall include at least the names and addresses of the

13 contributors and the dollar amounts of any contributions to any

14 political committee made within the previous 2 years. The

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

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

17 websites of the Authority and the Gaming Board.

18 (c) As used in this Section:

19 "Contribution" means contribution as defined in Section

20 9-1.4 of the Election Code.

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

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

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

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

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

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

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

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

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

4 sponsoring entity.

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

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

7 Section occurs. The Authority may direct a casino operator

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

9 occurs.

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

11 casino and related gaming activities shall be entered into by

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

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

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

15 approval requirements as would be applied to any other owners

16 licensee under the Illinois Gambling Act.

17 Section 1-115. Purchasing.

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

19 Authority to serve as the Chief Procurement Officer for the

20 Authority. The Chief Procurement Officer shall have all powers

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

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

23 this Section, the Chief Procurement Officer of the Authority

24 shall conduct procurements on behalf of the Authority subject

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

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

2 Illinois Municipal Code.

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

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

5 the Casino Board and executive director of the Authority.

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

7 executed by the Chief Procurement Officer for the Authority and

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

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

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

11 materials, equipment, and services for amounts greater than

12 $25,000 shall be let by a competitive selection process to the

13 lowest responsible proposer, after advertising for proposals,

14 except for the following:

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

16 services are required for equipment or services previously

17 furnished or contracted for;

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

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

20 are required;

21 (3) casino management contracts, which shall be

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

23 (4) contracts where there is only one economically

24 feasible source;

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

26 emergency basis because there exists a threat to public

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1 health or public safety, or when immediate expenditure is

2 necessary for repairs to Authority property in order to

3 protect against further loss of or damage to Authority

4 property, to prevent or minimize serious disruption in

5 Authority services or to ensure the integrity of Authority

6 records;

7 (6) contracts for professional services other than for

8 management of the casino, except such contracts described

9 in subsection (d) of this Section; and

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

11 movement, or installation of (i) data processing

12 equipment, software, and services and (ii)

13 telecommunications equipment, software, and services.

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

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

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

17 process to the most highly qualified firm that agrees to

18 compensation and other terms of engagement that are both

19 reasonable and acceptable to the Casino Board.

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

21 by competitive selection process whenever possible, and in any

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

23 the public.

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

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

26 individual having a beneficial interest, directly or

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

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

3 experience, adequacy of equipment, and ability to complete

4 performance within the time set, and other factors besides

5 financial responsibility. No such contract shall be awarded to

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

7 purchase or expenditure) unless authorized or approved by a

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

9 is accompanied by a written statement setting forth the reasons

10 for not awarding the contract to the highest or lowest

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

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

13 public inspection.

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

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

16 re-advertisement, no responsible and satisfactory proposals,

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

18 Authority may award such contract without competitive

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

20 Authority than any valid proposal received pursuant to

21 advertisement.

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

23 published at least once in a daily newspaper of general

24 circulation published in the City at least 10 calendar days

25 before the time for receiving proposals and in an online

26 bulletin published on the Authority's website. Such

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1 advertisements shall state the time and place for receiving and

2 opening of proposals and, by reference to plans and

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

4 in the advertisement itself, shall describe the character of

5 the proposed contract in sufficient detail to fully advise

6 prospective proposers of their obligations and to ensure free

7 and open competitive selection.

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

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

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

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

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

13 fixed by the Authority before advertising for proposals, shall

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

15 of the contract with surety or sureties satisfactory to the

16 Authority and adequate insurance may be required in reasonable

17 amounts to be fixed by the Authority before advertising for

18 proposals.

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

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

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

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

23 subject to the exemptions from disclosure provided under

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

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

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

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

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

3 including renegotiated contracts and change orders, shall be

4 published in an online bulletin. The online bulletin must

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

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

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

8 information of how to obtain a comprehensive purchase

9 description and any disclosure and contract forms, and

10 encouragement to prospective vendors to hire qualified

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

12 Procurement Code, and Illinois residents discharged from any

13 Illinois adult correctional center subject to Gaming Board

14 licensing and eligibility rules. Notice of each and every

15 contract that is let or awarded, including renegotiated

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

17 bulletin and must include at least all of the information

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

19 successful responsible proposer or offeror, the contract

20 price, and the number of unsuccessful responsive proposers and

21 any other disclosure specified in this Section. This notice

22 must be posted in the online electronic bulletin prior to

23 execution of the contract.

24 Section 1-130. Affirmative action and equal opportunity

25 obligations of Authority.

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

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

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

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

5 and Women-Owned Business Enterprise Procurement Program for

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

7 Chicago Municipal Code, as now or hereafter amended,

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

9 Women-Owned Business Enterprise Procurement Program.

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

11 with contractors' associations, labor unions, and the

12 contractors working on the development of the casino to

13 establish an apprenticeship preparedness training program to

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

15 journeymen and apprentices in the building trades and to enter

16 into agreements with community college districts or other

17 public or private institutions to provide readiness training.

18 The Authority is further authorized to enter into contracts

19 with public and private educational institutions and persons in

20 the gaming, entertainment, hospitality, and tourism industries

21 to provide training for employment in those industries.

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

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

24 otherwise convey any interest that they have in the casino

25 without prior approval of the General Assembly.

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

2 casinos and casino gaming, casino gaming facilities, and casino

3 operator licensees under this Act are exclusive powers and

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

5 license casinos, casino gaming, casino gaming facilities, or

6 casino operator licensees under this Act, except as provided

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

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

9 Article VII of the Illinois Constitution.

10 ARTICLE 90.

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

12 the following findings:

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

14 education funding since 2009 is approximately

15 $861,000,000.

16 (2) That general state aid to Illinois common schools

17 has been underfunded as a result of budget cuts, resulting

18 in pro-rated payments to school districts that are less

19 than the foundational level of $6,119 per pupil, which

20 represents the minimum each pupil needs to be educated.

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

22 necessary in order to fully fund the foundation level and

23 to maintain and support education in Illinois.

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

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

3 reversed if this amendatory Act of the 100th General

4 Assembly would be enacted.

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

6 verge of extinction due to fierce competition from fully

7 developed horse racing and gaming operations in other

8 states.

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

10 currently licensed gaming destinations, to maximize their

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

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

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

14 million in recurring annual tax revenue for the State to

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

16 promised under the capital plan occur on schedule.

17 (7) That Illinois agriculture and other businesses

18 that support and supply the horse racing industry, already

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

20 to substantially benefit and would be much more likely to

21 create additional jobs should Illinois horse racing once

22 again become competitive with other states.

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

24 can be sure that significant job and economic growth will

25 in fact result from the previously enacted legislation.

26 (9) That gaming machines at Illinois horse racing

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

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

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

4 additional trade organization jobs necessary to construct

5 new facilities or remodel race tracks to operate electronic

6 gaming.

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

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

9 (5 ILCS 430/5-45)

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

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

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

13 within a period of one year immediately after termination of

14 State employment, knowingly accept employment or receive

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

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

17 immediately preceding termination of State employment,

18 participated personally and substantially in the award of State

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

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

21 entity, or its parent or subsidiary.

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

23 employee of the executive branch with regulatory or licensing

24 authority, or spouse or immediate family member living with

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

2 after termination of State employment, knowingly accept

3 employment or receive compensation or fees for services from a

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

5 year immediately preceding termination of State employment,

6 participated personally and substantially in making a

7 regulatory or licensing decision that directly applied to the

8 person or entity, or its parent or subsidiary.

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

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

11 branch constitutional officer and legislative leader, the

12 Auditor General, and the Joint Committee on Legislative Support

13 Services shall adopt a policy delineating which State positions

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

15 their duties, may have the authority to participate personally

16 and substantially in the award of State contracts or in

17 regulatory or licensing decisions. The Governor shall adopt

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

19 not under the jurisdiction and control of any other executive

20 branch constitutional officer.

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

22 shall be filed with the appropriate ethics commission

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

24 the Office of the Auditor General.

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

26 determine that additional State positions under his or her

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1 jurisdiction, not otherwise subject to the policies required by

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

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

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

5 licensing decisions.

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

7 the Auditor General, and each of the executive branch

8 constitutional officers and legislative leaders subject to

9 subsection (c) of this Section shall provide written

10 notification to all employees in positions subject to the

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

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

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

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

15 An employee receiving notification must certify in writing that

16 the person was advised of the prohibition and the requirement

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

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

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

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

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

22 during State employment or within a period of one year

23 immediately after termination of State employment shall, prior

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

25 Inspector General. Within 10 calendar days after receiving

26 notification from an employee in a position subject to the

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

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

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

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

5 relevant information, an Inspector General shall assess the

6 effect of the prospective employment or relationship upon

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

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

9 State employee in those decisions. A determination by an

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

11 Inspector General, and delivered to the subject of the

12 determination within 10 calendar days or the person is deemed

13 eligible for the employment opportunity. For purposes of this

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

15 members and employees of the legislative branch, the

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

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

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

19 executive branch officers and employees, the Inspector General

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

21 determination of an Inspector General and of any such appeal

22 shall be given to the ultimate jurisdictional authority, the

23 Attorney General, and the Executive Ethics Commission.

24 (g) An Inspector General's determination regarding

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

26 appropriate Ethics Commission by the person subject to the

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

2 calendar day after the date of the determination.

3 On appeal, the Ethics Commission or Auditor General shall

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

5 determination. In deciding whether to uphold an Inspector

6 General's determination, the appropriate Ethics Commission or

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

8 information, the effect of the prospective employment or

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

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

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

12 The Ethics Commission shall decide whether to uphold an

13 Inspector General's determination within 10 calendar days or

14 the person is deemed eligible for the employment opportunity.

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

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

17 termination of office or State employment, knowingly accept

18 employment or receive compensation or fees for services from a

19 person or entity if the person or entity or its parent or

20 subsidiary, during the year immediately preceding termination

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

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

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

24 the subject of a regulatory or licensing decision involving the

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

26 of whether he or she participated personally and substantially

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

2 of the regulatory or licensing decision in question:

3 (1) members or officers;

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

5 Illinois Constitution;

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

7 the advice and consent of the Senate;

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

9 division, bureau, authority, or other administrative unit

10 within the government of this State;

11 (5) chief procurement officers, State purchasing

12 officers, and their designees whose duties are directly

13 related to State procurement; ~~and~~

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

15 chiefs of staff, assistant chiefs of staff, and deputy

16 governors; ~~.~~

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

18 (8) employees of the Illinois Gaming Board.

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

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

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

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

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

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

25 defined under Article VII, Section 1 of the Illinois

26 Constitution, or (v) school districts.

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

2 (5 ILCS 430/20-10)

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

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

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

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

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

8 under the direction and supervision of an Executive Inspector

9 General and shall be a fully independent office with separate

10 appropriations.

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

12 Comptroller, and Treasurer shall each appoint an Executive

13 Inspector General, and the Governor shall appoint an Executive

14 Inspector General for gaming activities. Each appointment must

15 be madewithout regard to political affiliation and solely on

16 the basis of integrity and demonstrated ability. Appointments

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

18 by three-fifths of the elected members concurring by record

19 vote. Any nomination not acted upon by the Senate within 60

20 session days of the receipt thereof shall be deemed to have

21 received the advice and consent of the Senate. If, during a

22 recess of the Senate, there is a vacancy in an office of

23 Executive Inspector General, the appointing authority shall

24 make a temporary appointment until the next meeting of the

25 Senate when the appointing authority shall make a nomination to

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1 fill that office. No person rejected for an office of Executive

2 Inspector General shall, except by the Senate's request, be

3 nominated again for that office at the same session of the

4 Senate or be appointed to that office during a recess of that

5 Senate.

6 Nothing in this Article precludes the appointment by the

7 Governor, Attorney General, Secretary of State, Comptroller,

8 or Treasurer of any other inspector general required or

9 permitted by law. The Governor, Attorney General, Secretary of

10 State, Comptroller, and Treasurer each may appoint an existing

11 inspector general as the Executive Inspector General required

12 by this Article, provided that such an inspector general is not

13 prohibited by law, rule, jurisdiction, qualification, or

14 interest from serving as the Executive Inspector General

15 required by this Article. An appointing authority may not

16 appoint a relative as an Executive Inspector General.

17 Each Executive Inspector General shall have the following

18 qualifications:

19 (1) has not been convicted of any felony under the laws

20 of this State, another State, or the United States;

21 (2) has earned a baccalaureate degree from an

22 institution of higher education; and

23 (3) has 5 or more years of cumulative service (A) with

24 a federal, State, or local law enforcement agency, at least

25 2 years of which have been in a progressive investigatory

26 capacity; (B) as a federal, State, or local prosecutor; (C)

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1 as a senior manager or executive of a federal, State, or

2 local agency; (D) as a member, an officer, or a State or

3 federal judge; or (E) representing any combination of (A)

4 through (D).

5 The term of each initial Executive Inspector General shall

6 commence upon qualification and shall run through June 30,

7 2008. The initial appointments shall be made within 60 days

8 after the effective date of this Act.

9 After the initial term, each Executive Inspector General

10 shall serve for 5-year terms commencing on July 1 of the year

11 of appointment and running through June 30 of the fifth

12 following year. An Executive Inspector General may be

13 reappointed to one or more subsequent terms.

14 A vacancy occurring other than at the end of a term shall

15 be filled by the appointing authority only for the balance of

16 the term of the Executive Inspector General whose office is

17 vacant.

18 Terms shall run regardless of whether the position is

19 filled.

20 (c) The Executive Inspector General appointed by the

21 Attorney General shall have jurisdiction over the Attorney

22 General and all officers and employees of, and vendors and

23 others doing business with, State agencies within the

24 jurisdiction of the Attorney General. The Executive Inspector

25 General appointed by the Secretary of State shall have

26 jurisdiction over the Secretary of State and all officers and

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1 employees of, and vendors and others doing business with, State

2 agencies within the jurisdiction of the Secretary of State. The

3 Executive Inspector General appointed by the Comptroller shall

4 have jurisdiction over the Comptroller and all officers and

5 employees of, and vendors and others doing business with, State

6 agencies within the jurisdiction of the Comptroller. The

7 Executive Inspector General appointed by the Treasurer shall

8 have jurisdiction over the Treasurer and all officers and

9 employees of, and vendors and others doing business with, State

10 agencies within the jurisdiction of the Treasurer. The

11 Executive Inspector General appointed by the Governor shall

12 have jurisdiction over (i) the Governor, (ii) the Lieutenant

13 Governor, (iii) all officers and employees of, and vendors and

14 others doing business with, executive branch State agencies

15 under the jurisdiction of the Executive Ethics Commission and

16 not within the jurisdiction of the Attorney General, the

17 Secretary of State, the Comptroller, ~~or~~ the Treasurer, or the

18 Executive Inspector General for gaming activities, and (iv) all

19 board members and employees of the Regional Transit Boards and

20 all vendors and others doing business with the Regional Transit

21 Boards.The Executive Inspector General for gaming activities

22 appointed by the Governor has jurisdiction over the Illinois

23 Gaming Board, all officers and employees of the Illinois Gaming

24 Board, and all activities of the Illinois Gaming Board.

25 The jurisdiction of each Executive Inspector General is to

26 investigate allegations of fraud, waste, abuse, mismanagement,

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1 misconduct, nonfeasance, misfeasance, malfeasance, or

2 violations of this Act or violations of other related laws and

3 rules.

4 (d) The compensation for each Executive Inspector General

5 shall be determined by the Executive Ethics Commission and

6 shall be made from appropriations made to the Comptroller for

7 this purpose. Subject to Section 20-45 of this Act, each

8 Executive Inspector General has full authority to organize his

9 or her Office of the Executive Inspector General, including the

10 employment and determination of the compensation of staff, such

11 as deputies, assistants, and other employees, as

12 appropriations permit. A separate appropriation shall be made

13 for each Office of Executive Inspector General.

14 (e) No Executive Inspector General or employee of the

15 Office of the Executive Inspector General may, during his or

16 her term of appointment or employment:

17 (1) become a candidate for any elective office;

18 (2) hold any other elected or appointed public office

19 except for appointments on governmental advisory boards or

20 study commissions or as otherwise expressly authorized by

21 law;

22 (3) be actively involved in the affairs of any

23 political party or political organization; or

24 (4) advocate for the appointment of another person to

25 an appointed or elected office or position or actively

26 participate in any campaign for any elective office.

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1 In this subsection an appointed public office means a

2 position authorized by law that is filled by an appointing

3 authority as provided by law and does not include employment by

4 hiring in the ordinary course of business.

5 (e-1) No Executive Inspector General or employee of the

6 Office of the Executive Inspector General may, for one year

7 after the termination of his or her appointment or employment:

8 (1) become a candidate for any elective office;

9 (2) hold any elected public office; or

10 (3) hold any appointed State, county, or local judicial

11 office.

12 (e-2) The requirements of item (3) of subsection (e-1) may

13 be waived by the Executive Ethics Commission.

14 (f) An Executive Inspector General may be removed only for

15 cause and may be removed only by the appointing~~constitutional~~

16 officer. At the time of the removal, the appointing

17 ~~constitutional~~officer must report to the Executive Ethics

18 Commission the justification for the removal.

19 (Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)

20 Section 90-5. The Alcoholism and Other Drug Abuse and

21 Dependency Act is amended by changing Section 5-20 as follows:

22 (20 ILCS 301/5-20)

23 Sec. 5-20. Compulsive gambling program.

24 (a) Subject to appropriation, the Department shall

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1 establish a program for public education, research, and

2 training regarding problem and compulsive gambling and the

3 treatment and prevention of problem and compulsive gambling.

4 Subject to specific appropriation for these stated purposes,

5 the program must include all of the following:

6 (1) Establishment and maintenance of a toll-free "800"

7 telephone number to provide crisis counseling and referral

8 services to families experiencing difficulty as a result of

9 problem or compulsive gambling.

10 (2) Promotion of public awareness regarding the

11 recognition and prevention of problem and compulsive

12 gambling.

13 (3) Facilitation, through in-service training and

14 other means, of the availability of effective assistance

15 programs for problem and compulsive gamblers.

16 (4) Conducting studies to identify adults and

17 juveniles in this State who are, or who are at risk of

18 becoming, problem or compulsive gamblers.

19 (b) Subject to appropriation, the Department shall either

20 establish and maintain the program or contract with a private

21 or public entity for the establishment and maintenance of the

22 program. Subject to appropriation, either the Department or the

23 private or public entity shall implement the toll-free

24 telephone number, promote public awareness, and conduct

25 in-service training concerning problem and compulsive

26 gambling.

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1 (c) Subject to appropriation, the Department shall produce

2 and supply the signs specified in Section 10.7 of the Illinois

3 Lottery Law, Section 34.1 of the Illinois Horse Racing Act of

4 1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1

5 of the Charitable Games Act, and Section 13.1 of the Illinois

6 ~~Riverboat~~Gambling Act.

7 (Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)

8 Section 90-6. The Department of Commerce and Economic

9 Opportunity Law of the Civil Administrative Code of Illinois is

10 amended by adding Sections 605-530 and 605-535 as follows:

11 (20 ILCS 605/605-530 new)

12 Sec. 605-530. The Depressed Communities Economic

13 Development Board.

14 (a) The Depressed Communities Economic Development Board

15 is created as an advisory board within the Department of

16 Commerce and Economic Opportunity. The Board shall consist of

17 the following members:

18 (1) 3 members appointed by the Governor, one of whom

19 shall be appointed to serve an initial term of one year and

20 2 of whom shall be appointed to serve an initial term of 2

21 years;

22 (2) 2 members appointed by the Speaker of the House of

23 Representatives, one of whom shall be appointed to serve an

24 initial term of one year and one of whom shall be appointed

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1 to serve an initial term of 2 years;

2 (3) 2 members appointed by the President of the Senate,

3 one of whom shall be appointed to serve an initial term of

4 one year and one of whom shall be appointed to serve an

5 initial term of 2 years;

6 (4) 2 members appointed by the Minority Leader of the

7 House of Representatives, one of whom shall be appointed to

8 serve an initial term of one year and one of whom shall be

9 appointed to serve an initial term of 2 years; and

10 (5) 2 members appointed by the Minority Leader of the

11 Senate, one of whom shall be appointed to serve an initial

12 term of one year and one of whom shall be appointed to

13 serve an initial term of 2 years.

14 The members of the Board shall elect a member to serve as

15 chair of the Board. The members of the Board shall reflect the

16 composition of the Illinois population with regard to ethnic

17 and racial composition.

18 After the initial terms, each member shall be appointed to

19 serve a term of 2 years and until his or her successor has been

20 appointed and assumes office. If a vacancy occurs in the Board

21 membership, then the vacancy shall be filled in the same manner

22 as the initial appointment. No member of the Board shall, at

23 the time of his or her appointment or within 2 years before the

24 appointment, hold elected office or be appointed to a State

25 board, commission, or agency. All Board members are subject to

26 the State Officials and Employees Ethics Act.

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1 (b) Board members shall serve without compensation, but may

2 be reimbursed for their reasonable travel expenses from funds

3 available for that purpose. The Department of Commerce and

4 Economic Opportunity shall provide staff and administrative

5 support services to the Board.

6 (c) The Board must make recommendations, which must be

7 approved by a majority of the Board, to the Department of

8 Commerce and Economic Opportunity concerning the award of

9 grants from amounts appropriated to the Department from the

10 Depressed Communities Economic Development Fund, a special

11 fund created in the State treasury. The Department must make

12 grants to public or private entities submitting proposals to

13 the Board to revitalize an Illinois depressed community. Grants

14 may be used by these entities only for those purposes

15 conditioned with the grant. For the purposes of this subsection

16 (c), plans for revitalizing an Illinois depressed community

17 include plans intended to curb high levels of poverty,

18 unemployment, job and population loss, and general distress. An

19 Illinois depressed community is an area where the poverty rate,

20 as determined by using the most recent data released by the

21 United States Census Bureau, is at least 3% greater than the

22 State poverty rate as determined by using the most recent data

23 released by the United States Census Bureau.

24 (20 ILCS 605/605-535 new)

25 Sec. 605-535. The Commission on the Future of Economic

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1 Development of the Latino Community.

2 (a) There is hereby created the Commission on the Future of

3 Economic Development of the Latino Community within the

4 Department. The purpose of the Commission shall be to maintain

5 and develop the economy of Latinos and to provide opportunities

6 for this community, which will enhance and expand the quality

7 of their lives.

8 The Commission shall concentrate its major efforts on

9 strategic planning, policy research and analysis, advocacy,

10 evaluation, and promoting coordination and collaboration.

11 During each regular legislative session, the Commission

12 must consult with appropriate legislative committees about the

13 State's economic development needs and opportunities in the

14 Latino community.

15 By October 1st of each even-numbered year, the Commission

16 must submit to the Governor and the General Assembly a biennial

17 comprehensive statewide economic development strategy for the

18 Latino community with a report on progress from the previous

19 comprehensive strategy.

20 The comprehensive statewide economic development strategy

21 may include, but is not limited to:

22 (1) an assessment of the Latino community's economic

23 vitality;

24 (2) recommended goals, objectives, and priorities for

25 the next biennium and the future;

26 (3) a common set of outcomes and benchmarks for the

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1 economic development system as a whole for the Latino

2 community;

3 (4) recommendations for removing barriers for Latinos

4 in employment;

5 (5) an inventory of existing relevant programs

6 compiled by the Commission from materials submitted by

7 agencies;

8 (6) recommendations for expanding, discontinuing, or

9 redirecting existing programs or adding new programs to

10 better serve the Latino community; and

11 (7) recommendations of best practices and public and

12 private sector roles in implementing the comprehensive

13 statewide economic development strategy.

14 In developing the biennial statewide economic development

15 strategy, goals, objectives, priorities, and recommendations,

16 the Commission shall consult, collaborate, and coordinate with

17 relevant State agencies, private sector business, nonprofit

18 organizations involved in economic development, trade

19 associations, associate development organizations, and

20 relevant local organizations in order to avoid duplication of

21 effort.

22 State agencies shall cooperate with the Commission and

23 provide information as the Commission may reasonably request.

24 The Commission shall review and make budget

25 recommendations to the Governor's Office of Management and

26 Budget and the General Assembly in areas relating to the

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1 economic development in the State's Latino community.

2 The Commission shall evaluate its own performance on a

3 regular basis.

4 The Commission may accept gifts, grants, donations,

5 sponsorships, or contributions from any federal, State, or

6 local governmental agency or program, or any private source,

7 and expend the same for any purpose consistent with this

8 Section.

9 (b) The Commission shall consist of 12 voting members,

10 appointed by the Governor, 4 of whom shall be appointed to

11 serve an initial term of one year, 4 of whom shall be appointed

12 to serve an initial term of 2 years, and 4 of whom shall be

13 appointed to serve an initial term of 3 years. After the

14 initial term, each member shall be appointed to a term of 3

15 years. Members of the Commission shall serve at the pleasure of

16 the Governor for not more than 2 consecutive 3-year terms. In

17 appointing members, the Governor shall appoint individuals

18 from the following private industry sectors:

19 (1) production agriculture;

20 (2) at least 2 individuals from manufacturing, one of

21 whom shall represent a company with no more than 75

22 employees;

23 (3) transportation, construction, and logistics;

24 (4) travel and tourism;

25 (5) financial services and insurance;

26 (6) information technology and communications; and

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1 (7) biotechnology.

2 The members of the Commission shall choose a member to

3 serve as chair of the Commission. The members of the Commission

4 shall be representative, to the extent possible, of the various

5 geographic areas of the State. The Director shall serve as an

6 ad hoc nonvoting member of the Commission. Vacancies shall be

7 filled in the same manner as the original appointments. The

8 members of the Commission shall serve without compensation.

9 (c) The Commission shall meet at least 4 times per year,

10 with at least one meeting each calendar quarter, at the call of

11 the director or 4 voting members of the Commission. The staff

12 and support for the Commission shall be provided by the

13 Department.

14 (d) The Commission and Department are encouraged to involve

15 other essential groups in the work of the Commission,

16 including, but not limited to:

17 (1) public universities;

18 (2) community colleges;

19 (3) other educational institutions; and

20 (4) the Department of Labor.

21 (e) The Commission shall make recommendations, which must

22 be approved by a majority of the members of the Commission, to

23 the Department concerning the award of grants from amounts

24 appropriated to the Department from the Latino Community

25 Economic Development Fund, a special fund in the State

26 treasury. The Department shall make grants to public or private

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1 entities submitting proposals to the Commission to assist in

2 the economic development of the Latino community. Grants may be

3 used by these entities only for those purposes conditioned with

4 the grant. The Commission shall coordinate with the Department

5 to develop grant criteria.

6 (f) For the purposes of this Section:

7 "Department" means the Department of Commerce and Economic

8 Development.

9 "Director" means the Director of Commerce and Economic

10 Development.

11 "Educational institutions" means nonprofit public and

12 private colleges, community colleges, State colleges, and

13 universities in this State.

14 Section 90-8. The Illinois Lottery Law is amended by

15 changing Section 9.1 as follows:

16 (20 ILCS 1605/9.1)

17 Sec. 9.1. Private manager and management agreement.

18 (a) As used in this Section:

19 "Offeror" means a person or group of persons that responds

20 to a request for qualifications under this Section.

21 "Request for qualifications" means all materials and

22 documents prepared by the Department to solicit the following

23 from offerors:

24 (1) Statements of qualifications.

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1 (2) Proposals to enter into a management agreement,

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 offer" means the last proposal submitted by an

7 offeror in response to the request for qualifications,

8 including the identity of any prospective vendor or vendors

9 that the offeror intends to initially engage to assist the

10 offeror in performing its obligations under the management

11 agreement.

12 "Final offeror" means the offeror ultimately selected by

13 the Governor to be the private manager for the Lottery under

14 subsection (h) of this Section.

15 (b) By September 15, 2010, the Governor shall select a

16 private manager for the total management of the Lottery with

17 integrated functions, such as lottery game design, supply of

18 goods and services, and advertising and as specified in this

19 Section.

20 (c) Pursuant to the terms of this subsection, the

21 Department shall endeavor to expeditiously terminate the

22 existing contracts in support of the Lottery in effect on the

23 effective date of this amendatory Act of the 96th General

24 Assembly in connection with the selection of the private

25 manager. As part of its obligation to terminate these contracts

26 and select the private manager, the Department shall establish

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1 a mutually agreeable timetable to transfer the functions of

2 existing contractors to the private manager so that existing

3 Lottery operations are not materially diminished or impaired

4 during the transition. To that end, the Department shall do the

5 following:

6 (1) where such contracts contain a provision

7 authorizing termination upon notice, the Department shall

8 provide notice of termination to occur upon the mutually

9 agreed timetable for transfer of functions;

10 (2) upon the expiration of any initial term or renewal

11 term of the current Lottery contracts, the Department shall

12 not renew such contract for a term extending beyond the

13 mutually agreed timetable for transfer of functions; or

14 (3) in the event any current contract provides for

15 termination of that contract upon the implementation of a

16 contract with the private manager, the Department shall

17 perform all necessary actions to terminate the contract on

18 the date that coincides with the mutually agreed timetable

19 for transfer of functions.

20 If the contracts to support the current operation of the

21 Lottery in effect on the effective date of this amendatory Act

22 of the 96th General Assembly are not subject to termination as

23 provided for in this subsection (c), then the Department may

24 include a provision in the contract with the private manager

25 specifying a mutually agreeable methodology for incorporation.

26 (c-5) The Department shall include provisions in the

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1 management agreement whereby the private manager shall, for a

2 fee, and pursuant to a contract negotiated with the Department

3 (the "Employee Use Contract"), utilize the services of current

4 Department employees to assist in the administration and

5 operation of the Lottery. The Department shall be the employer

6 of all such bargaining unit employees assigned to perform such

7 work for the private manager, and such employees shall be State

8 employees, as defined by the Personnel Code. Department

9 employees shall operate under the same employment policies,

10 rules, regulations, and procedures, as other employees of the

11 Department. In addition, neither historical representation

12 rights under the Illinois Public Labor Relations Act, nor

13 existing collective bargaining agreements, shall be disturbed

14 by the management agreement with the private manager for the

15 management of the Lottery.

16 (d) The management agreement with the private manager shall

17 include all of the following:

18 (1) A term not to exceed 10 years, including any

19 renewals.

20 (2) A provision specifying that the Department:

21 (A) shall exercise actual control over all

22 significant business decisions;

23 (A-5) has the authority to direct or countermand

24 operating decisions by the private manager at any time;

25 (B) has ready access at any time to information

26 regarding Lottery operations;

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1 (C) has the right to demand and receive information

2 from the private manager concerning any aspect of the

3 Lottery operations at any time; and

4 (D) retains ownership of all trade names,

5 trademarks, and intellectual property associated with

6 the Lottery.

7 (3) A provision imposing an affirmative duty on the

8 private manager to provide the Department with material

9 information and with any information the private manager

10 reasonably believes the Department would want to know to

11 enable the Department to conduct the Lottery.

12 (4) A provision requiring the private manager to

13 provide the Department with advance notice of any operating

14 decision that bears significantly on the public interest,

15 including, but not limited to, decisions on the kinds of

16 games to be offered to the public and decisions affecting

17 the relative risk and reward of the games being offered, so

18 the Department has a reasonable opportunity to evaluate and

19 countermand that decision.

20 (5) A provision providing for compensation of the

21 private manager that may consist of, among other things, a

22 fee for services and a performance based bonus as

23 consideration for managing the Lottery, including terms

24 that may provide the private manager with an increase in

25 compensation if Lottery revenues grow by a specified

26 percentage in a given year.

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1 (6) (Blank).

2 (7) A provision requiring the deposit of all Lottery

3 proceeds to be deposited into the State Lottery Fund except

4 as otherwise provided in Section 20 of this Act.

5 (8) A provision requiring the private manager to locate

6 its principal office within the State.

7 (8-5) A provision encouraging that at least 20% of the

8 cost of contracts entered into for goods and services by

9 the private manager in connection with its management of

10 the Lottery, other than contracts with sales agents or

11 technical advisors, be awarded to businesses that are a

12 minority owned business, a female owned business, or a

13 business owned by a person with disability, as those terms

14 are defined in the Business Enterprise for Minorities,

15 Females, and Persons with Disabilities Act.

16 (9) A requirement that so long as the private manager

17 complies with all the conditions of the agreement under the

18 oversight of the Department, the private manager shall have

19 the following duties and obligations with respect to the

20 management of the Lottery:

21 (A) The right to use equipment and other assets

22 used in the operation of the Lottery.

23 (B) The rights and obligations under contracts

24 with retailers and vendors.

25 (C) The implementation of a comprehensive security

26 program by the private manager.

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1 (D) The implementation of a comprehensive system

2 of internal audits.

3 (E) The implementation of a program by the private

4 manager to curb compulsive gambling by persons playing

5 the Lottery.

6 (F) A system for determining (i) the type of

7 Lottery games, (ii) the method of selecting winning

8 tickets, (iii) the manner of payment of prizes to

9 holders of winning tickets, (iv) the frequency of

10 drawings of winning tickets, (v) the method to be used

11 in selling tickets, (vi) a system for verifying the

12 validity of tickets claimed to be winning tickets,

13 (vii) the basis upon which retailer commissions are

14 established by the manager, and (viii) minimum

15 payouts.

16 (10) A requirement that advertising and promotion must

17 be consistent with Section 7.8a of this Act.

18 (11) A requirement that the private manager market the

19 Lottery to those residents who are new, infrequent, or

20 lapsed players of the Lottery, especially those who are

21 most likely to make regular purchases on the Internet as

22 permitted by law.

23 (12) A code of ethics for the private manager's

24 officers and employees.

25 (13) A requirement that the Department monitor and

26 oversee the private manager's practices and take action

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1 that the Department considers appropriate to ensure that

2 the private manager is in compliance with the terms of the

3 management agreement, while allowing the manager, unless

4 specifically prohibited by law or the management

5 agreement, to negotiate and sign its own contracts with

6 vendors.

7 (14) A provision requiring the private manager to

8 periodically file, at least on an annual basis, appropriate

9 financial statements in a form and manner acceptable to the

10 Department.

11 (15) Cash reserves requirements.

12 (16) Procedural requirements for obtaining the prior

13 approval of the Department when a management agreement or

14 an interest in a management agreement is sold, assigned,

15 transferred, or pledged as collateral to secure financing.

16 (17) Grounds for the termination of the management

17 agreement by the Department or the private manager.

18 (18) Procedures for amendment of the agreement.

19 (19) A provision requiring the private manager to

20 engage in an open and competitive bidding process for any

21 procurement having a cost in excess of $50,000 that is not

22 a part of the private manager's final offer. The process

23 shall favor the selection of a vendor deemed to have

24 submitted a proposal that provides the Lottery with the

25 best overall value. The process shall not be subject to the

26 provisions of the Illinois Procurement Code, unless

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1 specifically required by the management agreement.

2 (20) The transition of rights and obligations,

3 including any associated equipment or other assets used in

4 the operation of the Lottery, from the manager to any

5 successor manager of the lottery, including the

6 Department, following the termination of or foreclosure

7 upon the management agreement.

8 (21) Right of use of copyrights, trademarks, and

9 service marks held by the Department in the name of the

10 State. The agreement must provide that any use of them by

11 the manager shall only be for the purpose of fulfilling its

12 obligations under the management agreement during the term

13 of the agreement.

14 (22) The disclosure of any information requested by the

15 Department to enable it to comply with the reporting

16 requirements and information requests provided for under

17 subsection (p) of this Section.

18 (e) Notwithstanding any other law to the contrary, the

19 Department shall select a private manager through a competitive

20 request for qualifications process consistent with Section

21 20-35 of the Illinois Procurement Code, which shall take into

22 account:

23 (1) the offeror's ability to market the Lottery to

24 those residents who are new, infrequent, or lapsed players

25 of the Lottery, especially those who are most likely to

26 make regular purchases on the Internet;

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1 (2) the offeror's ability to address the State's

2 concern with the social effects of gambling on those who

3 can least afford to do so;

4 (3) the offeror's ability to provide the most

5 successful management of the Lottery for the benefit of the

6 people of the State based on current and past business

7 practices or plans of the offeror; and

8 (4) the offeror's poor or inadequate past performance

9 in servicing, equipping, operating or managing a lottery on

10 behalf of Illinois, another State or foreign government and

11 attracting persons who are not currently regular players of

12 a lottery.

13 (f) The Department may retain the services of an advisor or

14 advisors with significant experience in financial services or

15 the management, operation, and procurement of goods, services,

16 and equipment for a government-run lottery to assist in the

17 preparation of the terms of the request for qualifications and

18 selection of the private manager. Any prospective advisor

19 seeking to provide services under this subsection (f) shall

20 disclose any material business or financial relationship

21 during the past 3 years with any potential offeror, or with a

22 contractor or subcontractor presently providing goods,

23 services, or equipment to the Department to support the

24 Lottery. The Department shall evaluate the material business or

25 financial relationship of each prospective advisor. The

26 Department shall not select any prospective advisor with a

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1 substantial business or financial relationship that the

2 Department deems to impair the objectivity of the services to

3 be provided by the prospective advisor. During the course of

4 the advisor's engagement by the Department, and for a period of

5 one year thereafter, the advisor shall not enter into any

6 business or financial relationship with any offeror or any

7 vendor identified to assist an offeror in performing its

8 obligations under the management agreement. Any advisor

9 retained by the Department shall be disqualified from being an

10 offeror. The Department shall not include terms in the request

11 for qualifications that provide a material advantage whether

12 directly or indirectly to any potential offeror, or any

13 contractor or subcontractor presently providing goods,

14 services, or equipment to the Department to support the

15 Lottery, including terms contained in previous responses to

16 requests for proposals or qualifications submitted to

17 Illinois, another State or foreign government when those terms

18 are uniquely associated with a particular potential offeror,

19 contractor, or subcontractor. The request for proposals

20 offered by the Department on December 22, 2008 as

21 "LOT08GAMESYS" and reference number "22016176" is declared

22 void.

23 (g) The Department shall select at least 2 offerors as

24 finalists to potentially serve as the private manager no later

25 than August 9, 2010. Upon making preliminary selections, the

26 Department shall schedule a public hearing on the finalists'

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1 proposals and provide public notice of the hearing at least 7

2 calendar days before the hearing. The notice must include all

3 of the following:

4 (1) The date, time, and place of the hearing.

5 (2) The subject matter of the hearing.

6 (3) A brief description of the management agreement to

7 be awarded.

8 (4) The identity of the offerors that have been

9 selected as finalists to serve as the private manager.

10 (5) The address and telephone number of the Department.

11 (h) At the public hearing, the Department shall (i) provide

12 sufficient time for each finalist to present and explain its

13 proposal to the Department and the Governor or the Governor's

14 designee, including an opportunity to respond to questions

15 posed by the Department, Governor, or designee and (ii) allow

16 the public and non-selected offerors to comment on the

17 presentations. The Governor or a designee shall attend the

18 public hearing. After the public hearing, the Department shall

19 have 14 calendar days to recommend to the Governor whether a

20 management agreement should be entered into with a particular

21 finalist. After reviewing the Department's recommendation, the

22 Governor may accept or reject the Department's recommendation,

23 and shall select a final offeror as the private manager by

24 publication of a notice in the Illinois Procurement Bulletin on

25 or before September 15, 2010. The Governor shall include in the

26 notice a detailed explanation and the reasons why the final

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1 offeror is superior to other offerors and will provide

2 management services in a manner that best achieves the

3 objectives of this Section. The Governor shall also sign the

4 management agreement with the private manager.

5 (i) Any action to contest the private manager selected by

6 the Governor under this Section must be brought within 7

7 calendar days after the publication of the notice of the

8 designation of the private manager as provided in subsection

9 (h) of this Section.

10 (j) The Lottery shall remain, for so long as a private

11 manager manages the Lottery in accordance with provisions of

12 this Act, a Lottery conducted by the State, and the State shall

13 not be authorized to sell or transfer the Lottery to a third

14 party.

15 (k) Any tangible personal property used exclusively in

16 connection with the lottery that is owned by the Department and

17 leased to the private manager shall be owned by the Department

18 in the name of the State and shall be considered to be public

19 property devoted to an essential public and governmental

20 function.

21 (l) The Department may exercise any of its powers under

22 this Section or any other law as necessary or desirable for the

23 execution of the Department's powers under this Section.

24 (m) Neither this Section nor any management agreement

25 entered into under this Section prohibits the General Assembly

26 from authorizing forms of gambling that are not in direct

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1 competition with the Lottery. The forms of gambling authorized

2 by this amendatory Act of the 100th General Assembly constitute

3 authorized forms of gambling that are not in direct competition

4 with the Lottery.

5 (n) The private manager shall be subject to a complete

6 investigation in the third, seventh, and tenth years of the

7 agreement (if the agreement is for a 10-year term) by the

8 Department in cooperation with the Auditor General to determine

9 whether the private manager has complied with this Section and

10 the management agreement. The private manager shall bear the

11 cost of an investigation or reinvestigation of the private

12 manager under this subsection.

13 (o) The powers conferred by this Section are in addition

14 and supplemental to the powers conferred by any other law. If

15 any other law or rule is inconsistent with this Section,

16 including, but not limited to, provisions of the Illinois

17 Procurement Code, then this Section controls as to any

18 management agreement entered into under this Section. This

19 Section and any rules adopted under this Section contain full

20 and complete authority for a management agreement between the

21 Department and a private manager. No law, procedure,

22 proceeding, publication, notice, consent, approval, order, or

23 act by the Department or any other officer, Department, agency,

24 or instrumentality of the State or any political subdivision is

25 required for the Department to enter into a management

26 agreement under this Section. This Section contains full and

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1 complete authority for the Department to approve any contracts

2 entered into by a private manager with a vendor providing

3 goods, services, or both goods and services to the private

4 manager under the terms of the management agreement, including

5 subcontractors of such vendors.

6 Upon receipt of a written request from the Chief

7 Procurement Officer, the Department shall provide to the Chief

8 Procurement Officer a complete and un-redacted copy of the

9 management agreement or any contract that is subject to the

10 Department's approval authority under this subsection (o). The

11 Department shall provide a copy of the agreement or contract to

12 the Chief Procurement Officer in the time specified by the

13 Chief Procurement Officer in his or her written request, but no

14 later than 5 business days after the request is received by the

15 Department. The Chief Procurement Officer must retain any

16 portions of the management agreement or of any contract

17 designated by the Department as confidential, proprietary, or

18 trade secret information in complete confidence pursuant to

19 subsection (g) of Section 7 of the Freedom of Information Act.

20 The Department shall also provide the Chief Procurement Officer

21 with reasonable advance written notice of any contract that is

22 pending Department approval.

23 Notwithstanding any other provision of this Section to the

24 contrary, the Chief Procurement Officer shall adopt

25 administrative rules, including emergency rules, to establish

26 a procurement process to select a successor private manager if

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1 a private management agreement has been terminated. The

2 selection process shall at a minimum take into account the

3 criteria set forth in items (1) through (4) of subsection (e)

4 of this Section and may include provisions consistent with

5 subsections (f), (g), (h), and (i) of this Section. The Chief

6 Procurement Officer shall also implement and administer the

7 adopted selection process upon the termination of a private

8 management agreement. The Department, after the Chief

9 Procurement Officer certifies that the procurement process has

10 been followed in accordance with the rules adopted under this

11 subsection (o), shall select a final offeror as the private

12 manager and sign the management agreement with the private

13 manager.

14 Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and

15 21.9, the Department shall distribute all proceeds of lottery

16 tickets and shares sold in the following priority and manner:

17 (1) The payment of prizes and retailer bonuses.

18 (2) The payment of costs incurred in the operation and

19 administration of the Lottery, including the payment of

20 sums due to the private manager under the management

21 agreement with the Department.

22 (3) On the last day of each month or as soon thereafter

23 as possible, the State Comptroller shall direct and the

24 State Treasurer shall transfer from the State Lottery Fund

25 to the Common School Fund an amount that is equal to the

26 proceeds transferred in the corresponding month of fiscal

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1 year 2009, as adjusted for inflation, to the Common School

2 Fund.

3 (4) On or before the last day of each fiscal year,

4 deposit any remaining proceeds, subject to payments under

5 items (1), (2), and (3) into the Capital Projects Fund each

6 fiscal year.

7 (p) The Department shall be subject to the following

8 reporting and information request requirements:

9 (1) the Department shall submit written quarterly

10 reports to the Governor and the General Assembly on the

11 activities and actions of the private manager selected

12 under this Section;

13 (2) upon request of the Chief Procurement Officer, the

14 Department shall promptly produce information related to

15 the procurement activities of the Department and the

16 private manager requested by the Chief Procurement

17 Officer; the Chief Procurement Officer must retain

18 confidential, proprietary, or trade secret information

19 designated by the Department in complete confidence

20 pursuant to subsection (g) of Section 7 of the Freedom of

21 Information Act; and

22 (3) at least 30 days prior to the beginning of the

23 Department's fiscal year, the Department shall prepare an

24 annual written report on the activities of the private

25 manager selected under this Section and deliver that report

26 to the Governor and General Assembly.

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1 (Source: P.A. 98-463, eff. 8-16-13; 98-649, eff. 6-16-14;

2 99-933, eff. 1-27-17.)

3 Section 90-10. The Department of Revenue Law of the Civil

4 Administrative Code of Illinois is amended by changing Section

5 2505-305 as follows:

6 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)

7 Sec. 2505-305. Investigators.

8 (a) The Department has the power to appoint investigators

9 to conduct all investigations, searches, seizures, arrests,

10 and other duties imposed under the provisions of any law

11 administered by the Department. Except as provided in

12 subsection (c), these investigators have and may exercise all

13 the powers of peace officers solely for the purpose of

14 enforcing taxing measures administered by the Department.

15 (b) The Director must authorize to each investigator

16 employed under this Section and to any other employee of the

17 Department exercising the powers of a peace officer a distinct

18 badge that, on its face, (i) clearly states that the badge is

19 authorized by the Department and (ii) contains a unique

20 identifying number. No other badge shall be authorized by the

21 Department.

22 (c) The Department may enter into agreements with the

23 Illinois Gaming Board providing that investigators appointed

24 under this Section shall exercise the peace officer powers set

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1 forth in paragraph (20.6) of subsection (c) of Section 5 of the

2 Illinois ~~Riverboat~~Gambling Act.

3 (Source: P.A. 96-37, eff. 7-13-09.)

4 Section 90-12. The Illinois State Auditing Act is amended

5 by changing Section 3-1 as follows:

6 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)

7 Sec. 3-1. Jurisdiction of Auditor General. The Auditor

8 General has jurisdiction over all State agencies to make post

9 audits and investigations authorized by or under this Act or

10 the Constitution.

11 The Auditor General has jurisdiction over local government

12 agencies and private agencies only:

13 (a) to make such post audits authorized by or under

14 this Act as are necessary and incidental to a post audit of

15 a State agency or of a program administered by a State

16 agency involving public funds of the State, but this

17 jurisdiction does not include any authority to review local

18 governmental agencies in the obligation, receipt,

19 expenditure or use of public funds of the State that are

20 granted without limitation or condition imposed by law,

21 other than the general limitation that such funds be used

22 for public purposes;

23 (b) to make investigations authorized by or under this

24 Act or the Constitution; and

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1 (c) to make audits of the records of local government

2 agencies to verify actual costs of state-mandated programs

3 when directed to do so by the Legislative Audit Commission

4 at the request of the State Board of Appeals under the

5 State Mandates Act.

6 In addition to the foregoing, the Auditor General may

7 conduct an audit of the Metropolitan Pier and Exposition

8 Authority, the Regional Transportation Authority, the Suburban

9 Bus Division, the Commuter Rail Division and the Chicago

10 Transit Authority and any other subsidized carrier when

11 authorized by the Legislative Audit Commission. Such audit may

12 be a financial, management or program audit, or any combination

13 thereof.

14 The audit shall determine whether they are operating in

15 accordance with all applicable laws and regulations. Subject to

16 the limitations of this Act, the Legislative Audit Commission

17 may by resolution specify additional determinations to be

18 included in the scope of the audit.

19 In addition to the foregoing, the Auditor General must also

20 conduct a financial audit of the Illinois Sports Facilities

21 Authority's expenditures of public funds in connection with the

22 reconstruction, renovation, remodeling, extension, or

23 improvement of all or substantially all of any existing

24 "facility", as that term is defined in the Illinois Sports

25 Facilities Authority Act.

26 The Auditor General may also conduct an audit, when

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1 authorized by the Legislative Audit Commission, of any hospital

2 which receives 10% or more of its gross revenues from payments

3 from the State of Illinois, Department of Healthcare and Family

4 Services (formerly Department of Public Aid), Medical

5 Assistance Program.

6 The Auditor General is authorized to conduct financial and

7 compliance audits of the Illinois Distance Learning Foundation

8 and the Illinois Conservation Foundation.

9 As soon as practical after the effective date of this

10 amendatory Act of 1995, the Auditor General shall conduct a

11 compliance and management audit of the City of Chicago and any

12 other entity with regard to the operation of Chicago O'Hare

13 International Airport, Chicago Midway Airport and Merrill C.

14 Meigs Field. The audit shall include, but not be limited to, an

15 examination of revenues, expenses, and transfers of funds;

16 purchasing and contracting policies and practices; staffing

17 levels; and hiring practices and procedures. When completed,

18 the audit required by this paragraph shall be distributed in

19 accordance with Section 3-14.

20 The Auditor General shall conduct a financial and

21 compliance and program audit of distributions from the

22 Municipal Economic Development Fund during the immediately

23 preceding calendar year pursuant to Section 8-403.1 of the

24 Public Utilities Act at no cost to the city, village, or

25 incorporated town that received the distributions.

26 The Auditor General must conduct an audit of the Health

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1 Facilities and Services Review Board pursuant to Section 19.5

2 of the Illinois Health Facilities Planning Act.

3 The Auditor General must conduct an audit of the Chicago

4 Casino Development Authority pursuant to Section 1-60 of the

5 Chicago Casino Development Authority Act.

6 The Auditor General of the State of Illinois shall annually

7 conduct or cause to be conducted a financial and compliance

8 audit of the books and records of any county water commission

9 organized pursuant to the Water Commission Act of 1985 and

10 shall file a copy of the report of that audit with the Governor

11 and the Legislative Audit Commission. The filed audit shall be

12 open to the public for inspection. The cost of the audit shall

13 be charged to the county water commission in accordance with

14 Section 6z-27 of the State Finance Act. The county water

15 commission shall make available to the Auditor General its

16 books and records and any other documentation, whether in the

17 possession of its trustees or other parties, necessary to

18 conduct the audit required. These audit requirements apply only

19 through July 1, 2007.

20 The Auditor General must conduct audits of the Rend Lake

21 Conservancy District as provided in Section 25.5 of the River

22 Conservancy Districts Act.

23 The Auditor General must conduct financial audits of the

24 Southeastern Illinois Economic Development Authority as

25 provided in Section 70 of the Southeastern Illinois Economic

26 Development Authority Act.

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1 The Auditor General shall conduct a compliance audit in

2 accordance with subsections (d) and (f) of Section 30 of the

3 Innovation Development and Economy Act.

4 (Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;

5 96-939, eff. 6-24-10.)

6 Section 90-15. The State Finance Act is amended by adding

7 Sections 5.878, 5.879, 5.880, and 6z-102 and by changing

8 Section 6z-45 as follows:

9 (30 ILCS 105/5.878 new)

10 Sec. 5.878. The Gaming Facilities Fee Revenue Fund.

11 (30 ILCS 105/5.879 new)

12 Sec. 5.879. The Depressed Communities Economic Development

13 Fund.

14 (30 ILCS 105/5.880 new)

15 Sec. 5.880. The Latino Community Economic Development

16 Fund.

17 (30 ILCS 105/6z-45)

18 Sec. 6z-45. The School Infrastructure Fund.

19 (a) The School Infrastructure Fund is created as a special

20 fund in the State Treasury.

21 In addition to any other deposits authorized by law,

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1 beginning January 1, 2000, on the first day of each month, or

2 as soon thereafter as may be practical, the State Treasurer and

3 State Comptroller shall transfer the sum of $5,000,000 from the

4 General Revenue Fund to the School Infrastructure Fund, except

5 that, notwithstanding any other provision of law, and in

6 addition to any other transfers that may be provided for by

7 law, before June 30, 2012, the Comptroller and the Treasurer

8 shall transfer $45,000,000 from the General Revenue Fund into

9 the School Infrastructure Fund, and, for fiscal year 2013 only,

10 the Treasurer and the Comptroller shall transfer $1,250,000

11 from the General Revenue Fund to the School Infrastructure Fund

12 on the first day of each month; provided, however, that no such

13 transfers shall be made from July 1, 2001 through June 30,

14 2003.

15 (b) Subject to the transfer provisions set forth below,

16 money in the School Infrastructure Fund shall, if and when the

17 State of Illinois incurs any bonded indebtedness for the

18 construction of school improvements under the School

19 Construction Law, be set aside and used for the purpose of

20 paying and discharging annually the principal and interest on

21 that bonded indebtedness then due and payable, and for no other

22 purpose.

23 In addition to other transfers to the General Obligation

24 Bond Retirement and Interest Fund made pursuant to Section 15

25 of the General Obligation Bond Act, upon each delivery of bonds

26 issued for construction of school improvements under the School

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1 Construction Law, the State Comptroller shall compute and

2 certify to the State Treasurer the total amount of principal

3 of, interest on, and premium, if any, on such bonds during the

4 then current and each succeeding fiscal year. With respect to

5 the interest payable on variable rate bonds, such

6 certifications shall be calculated at the maximum rate of

7 interest that may be payable during the fiscal year, after

8 taking into account any credits permitted in the related

9 indenture or other instrument against the amount of such

10 interest required to be appropriated for that period.

11 On or before the last day of each month, the State

12 Treasurer and State Comptroller shall transfer from the School

13 Infrastructure Fund to the General Obligation Bond Retirement

14 and Interest Fund an amount sufficient to pay the aggregate of

15 the principal of, interest on, and premium, if any, on the

16 bonds payable on their next payment date, divided by the number

17 of monthly transfers occurring between the last previous

18 payment date (or the delivery date if no payment date has yet

19 occurred) and the next succeeding payment date. Interest

20 payable on variable rate bonds shall be calculated at the

21 maximum rate of interest that may be payable for the relevant

22 period, after taking into account any credits permitted in the

23 related indenture or other instrument against the amount of

24 such interest required to be appropriated for that period.

25 Interest for which moneys have already been deposited into the

26 capitalized interest account within the General Obligation

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1 Bond Retirement and Interest Fund shall not be included in the

2 calculation of the amounts to be transferred under this

3 subsection.

4 (b-5) The money deposited into the School Infrastructure

5 Fund from transfers pursuant to subsections (c-30) and (c-35)

6 of Section 13 of the Illinois ~~Riverboat~~ Gambling Act shall be

7 applied, without further direction, as provided in subsection

8 (b-3) of Section 5-35 of the School Construction Law.

9 (c) The surplus, if any, in the School Infrastructure Fund

10 after payments made pursuant to subsections (b) and (b-5) of

11 this Section shall, subject to appropriation, be used as

12 follows:

13 First - to make 3 payments to the School Technology

14 Revolving Loan Fund as follows:

15 Transfer of $30,000,000 in fiscal year 1999;

16 Transfer of $20,000,000 in fiscal year 2000; and

17 Transfer of $10,000,000 in fiscal year 2001.

18 Second - to pay the expenses of the State Board of

19 Education and the Capital Development Board in administering

20 programs under the School Construction Law, the total expenses

21 not to exceed $1,200,000 in any fiscal year.

22 Third - to pay any amounts due for grants for school

23 construction projects and debt service under the School

24 Construction Law.

25 Fourth - to pay any amounts due for grants for school

26 maintenance projects under the School Construction Law.

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1 (Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)

2 (30 ILCS 105/6z-102 new)

3 Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.

4 (a) The Gaming Facilities Fee Revenue Fund is created as a

5 special fund in the State treasury.

6 (b) The revenues in the Fund shall be used, subject to

7 appropriation, by the Comptroller for the purpose of (i)

8 providing appropriations to the Illinois Gaming Board for the

9 administration and enforcement of the Illinois Gambling Act and

10 the applicable provisions of the Chicago Casino Development

11 Authority Act and (ii) payment of vouchers that are outstanding

12 for more than 60 days. Whenever practical, the Comptroller must

13 prioritize voucher payments for expenses related to medical

14 assistance under the Illinois Public Aid Code, the Children's

15 Health Insurance Program Act, and the Covering ALL KIDS Health

16 Insurance Act.

17 (c) The Fund shall consist of fee revenues received

18 pursuant to subsection (e) of Section 1-45 of the Chicago

19 Casino Development Authority Act and pursuant to subsections

20 (e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections

21 (b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling

22 Act. All interest earned on moneys in the Fund shall be

23 deposited into the Fund.

24 (d) The Fund shall not be subject to administrative charges

25 or chargebacks, including, but not limited to, those authorized

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1 under subsection (h) of Section 8 of this Act.

2 Section 90-20. The Illinois Income Tax Act is amended by

3 changing Sections 201, 303, 304 and 710 as follows:

4 (35 ILCS 5/201) (from Ch. 120, par. 2-201)

5 Sec. 201. Tax Imposed.

6 (a) In general. A tax measured by net income is hereby

7 imposed on every individual, corporation, trust and estate for

8 each taxable year ending after July 31, 1969 on the privilege

9 of earning or receiving income in or as a resident of this

10 State. Such tax shall be in addition to all other occupation or

11 privilege taxes imposed by this State or by any municipal

12 corporation or political subdivision thereof.

13 (b) Rates. The tax imposed by subsection (a) of this

14 Section shall be determined as follows, except as adjusted by

15 subsection (d-1):

16 (1) In the case of an individual, trust or estate, for

17 taxable years ending prior to July 1, 1989, an amount equal

18 to 2 1/2% of the taxpayer's net income for the taxable

19 year.

20 (2) In the case of an individual, trust or estate, for

21 taxable years beginning prior to July 1, 1989 and ending

22 after June 30, 1989, an amount equal to the sum of (i) 2

23 1/2% of the taxpayer's net income for the period prior to

24 July 1, 1989, as calculated under Section 202.3, and (ii)

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1 3% of the taxpayer's net income for the period after June

2 30, 1989, as calculated under Section 202.3.

3 (3) In the case of an individual, trust or estate, for

4 taxable years beginning after June 30, 1989, and ending

5 prior to January 1, 2011, an amount equal to 3% of the

6 taxpayer's net income for the taxable year.

7 (4) In the case of an individual, trust, or estate, for

8 taxable years beginning prior to January 1, 2011, and

9 ending after December 31, 2010, an amount equal to the sum

10 of (i) 3% of the taxpayer's net income for the period prior

11 to January 1, 2011, as calculated under Section 202.5, and

12 (ii) 5% of the taxpayer's net income for the period after

13 December 31, 2010, as calculated under Section 202.5.

14 (5) In the case of an individual, trust, or estate, for

15 taxable years beginning on or after January 1, 2011, and

16 ending prior to January 1, 2015, an amount equal to 5% of

17 the taxpayer's net income for the taxable year.

18 (5.1) In the case of an individual, trust, or estate,

19 for taxable years beginning prior to January 1, 2015, and

20 ending after December 31, 2014, an amount equal to the sum

21 of (i) 5% of the taxpayer's net income for the period prior

22 to January 1, 2015, as calculated under Section 202.5, and

23 (ii) 3.75% of the taxpayer's net income for the period

24 after December 31, 2014, as calculated under Section 202.5.

25 (5.2) In the case of an individual, trust, or estate,

26 for taxable years beginning on or after January 1, 2015,

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1 and ending prior to January 1, 2025, an amount equal to

2 3.75% of the taxpayer's net income for the taxable year.

3 (5.3) In the case of an individual, trust, or estate,

4 for taxable years beginning prior to January 1, 2025, and

5 ending after December 31, 2024, an amount equal to the sum

6 of (i) 3.75% of the taxpayer's net income for the period

7 prior to January 1, 2025, as calculated under Section

8 202.5, and (ii) 3.25% of the taxpayer's net income for the

9 period after December 31, 2024, as calculated under Section

10 202.5.

11 (5.4) In the case of an individual, trust, or estate,

12 for taxable years beginning on or after January 1, 2025, an

13 amount equal to 3.25% of the taxpayer's net income for the

14 taxable year.

15 (6) In the case of a corporation, for taxable years

16 ending prior to July 1, 1989, an amount equal to 4% of the

17 taxpayer's net income for the taxable year.

18 (7) In the case of a corporation, for taxable years

19 beginning prior to July 1, 1989 and ending after June 30,

20 1989, an amount equal to the sum of (i) 4% of the

21 taxpayer's net income for the period prior to July 1, 1989,

22 as calculated under Section 202.3, and (ii) 4.8% of the

23 taxpayer's net income for the period after June 30, 1989,

24 as calculated under Section 202.3.

25 (8) In the case of a corporation, for taxable years

26 beginning after June 30, 1989, and ending prior to January

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1 1, 2011, an amount equal to 4.8% of the taxpayer's net

2 income for the taxable year.

3 (9) In the case of a corporation, for taxable years

4 beginning prior to January 1, 2011, and ending after

5 December 31, 2010, an amount equal to the sum of (i) 4.8%

6 of the taxpayer's net income for the period prior to

7 January 1, 2011, as calculated under Section 202.5, and

8 (ii) 7% of the taxpayer's net income for the period after

9 December 31, 2010, as calculated under Section 202.5.

10 (10) In the case of a corporation, for taxable years

11 beginning on or after January 1, 2011, and ending prior to

12 January 1, 2015, an amount equal to 7% of the taxpayer's

13 net income for the taxable year.

14 (11) In the case of a corporation, for taxable years

15 beginning prior to January 1, 2015, and ending after

16 December 31, 2014, an amount equal to the sum of (i) 7% of

17 the taxpayer's net income for the period prior to January

18 1, 2015, as calculated under Section 202.5, and (ii) 5.25%

19 of the taxpayer's net income for the period after December

20 31, 2014, as calculated under Section 202.5.

21 (12) In the case of a corporation, for taxable years

22 beginning on or after January 1, 2015, and ending prior to

23 January 1, 2025, an amount equal to 5.25% of the taxpayer's

24 net income for the taxable year.

25 (13) In the case of a corporation, for taxable years

26 beginning prior to January 1, 2025, and ending after

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1 December 31, 2024, an amount equal to the sum of (i) 5.25%

2 of the taxpayer's net income for the period prior to

3 January 1, 2025, as calculated under Section 202.5, and

4 (ii) 4.8% of the taxpayer's net income for the period after

5 December 31, 2024, as calculated under Section 202.5.

6 (14) In the case of a corporation, for taxable years

7 beginning on or after January 1, 2025, an amount equal to

8 4.8% of the taxpayer's net income for the taxable year.

9 The rates under this subsection (b) are subject to the

10 provisions of Section 201.5.

11 (b-5) Surcharge; sale or exchange of assets, properties,

12 and intangibles of electronic gaming licensees. For each of

13 taxable years 2017 through 2025, a surcharge is imposed on all

14 taxpayers on income arising from the sale or exchange of

15 capital assets, depreciable business property, real property

16 used in the trade or business, and Section 197 intangibles (i)

17 of an organization licensee under the Illinois Horse Racing Act

18 of 1975 and (ii) of an electronic gaming licensee under the

19 Illinois Gambling Act. The amount of the surcharge is equal to

20 the amount of federal income tax liability for the taxable year

21 attributable to those sales and exchanges. The surcharge

22 imposed shall not apply if:

23 (1) the electronic gaming license, organization

24 license, or race track property is transferred as a result

25 of any of the following:

26 (A) bankruptcy, a receivership, or a debt

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1 adjustment initiated by or against the initial

2 licensee or the substantial owners of the initial

3 licensee;

4 (B) cancellation, revocation, or termination of

5 any such license by the Illinois Gaming Board or the

6 Illinois Racing Board;

7 (C) a determination by the Illinois Gaming Board

8 that transfer of the license is in the best interests

9 of Illinois gaming;

10 (D) the death of an owner of the equity interest in

11 a licensee;

12 (E) the acquisition of a controlling interest in

13 the stock or substantially all of the assets of a

14 publicly traded company;

15 (F) a transfer by a parent company to a wholly

16 owned subsidiary; or

17 (G) the transfer or sale to or by one person to

18 another person where both persons were initial owners

19 of the license when the license was issued; or

20 (2) the controlling interest in the electronic gaming

21 license, organization license, or race track property is

22 transferred in a transaction to lineal descendants in which

23 no gain or loss is recognized or as a result of a

24 transaction in accordance with Section 351 of the Internal

25 Revenue Code in which no gain or loss is recognized; or

26 (3) live horse racing was not conducted in 2011 under a

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1 license issued pursuant to the Illinois Horse Racing Act of

2 1975.

3 The transfer of an electronic gaming license, organization

4 license, or race track property by a person other than the

5 initial licensee to receive the electronic gaming license is

6 not subject to a surcharge. The Department shall adopt rules

7 necessary to implement and administer this subsection.

8 (c) Personal Property Tax Replacement Income Tax.

9 Beginning on July 1, 1979 and thereafter, in addition to such

10 income tax, there is also hereby imposed the Personal Property

11 Tax Replacement Income Tax measured by net income on every

12 corporation (including Subchapter S corporations), partnership

13 and trust, for each taxable year ending after June 30, 1979.

14 Such taxes are imposed on the privilege of earning or receiving

15 income in or as a resident of this State. The Personal Property

16 Tax Replacement Income Tax shall be in addition to the income

17 tax imposed by subsections (a) and (b) of this Section and in

18 addition to all other occupation or privilege taxes imposed by

19 this State or by any municipal corporation or political

20 subdivision thereof.

21 (d) Additional Personal Property Tax Replacement Income

22 Tax Rates. The personal property tax replacement income tax

23 imposed by this subsection and subsection (c) of this Section

24 in the case of a corporation, other than a Subchapter S

25 corporation and except as adjusted by subsection (d-1), shall

26 be an additional amount equal to 2.85% of such taxpayer's net

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1 income for the taxable year, except that beginning on January

2 1, 1981, and thereafter, the rate of 2.85% specified in this

3 subsection shall be reduced to 2.5%, and in the case of a

4 partnership, trust or a Subchapter S corporation shall be an

5 additional amount equal to 1.5% of such taxpayer's net income

6 for the taxable year.

7 (d-1) Rate reduction for certain foreign insurers. In the

8 case of a foreign insurer, as defined by Section 35A-5 of the

9 Illinois Insurance Code, whose state or country of domicile

10 imposes on insurers domiciled in Illinois a retaliatory tax

11 (excluding any insurer whose premiums from reinsurance assumed

12 are 50% or more of its total insurance premiums as determined

13 under paragraph (2) of subsection (b) of Section 304, except

14 that for purposes of this determination premiums from

15 reinsurance do not include premiums from inter-affiliate

16 reinsurance arrangements), beginning with taxable years ending

17 on or after December 31, 1999, the sum of the rates of tax

18 imposed by subsections (b) and (d) shall be reduced (but not

19 increased) to the rate at which the total amount of tax imposed

20 under this Act, net of all credits allowed under this Act,

21 shall equal (i) the total amount of tax that would be imposed

22 on the foreign insurer's net income allocable to Illinois for

23 the taxable year by such foreign insurer's state or country of

24 domicile if that net income were subject to all income taxes

25 and taxes measured by net income imposed by such foreign

26 insurer's state or country of domicile, net of all credits

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1 allowed or (ii) a rate of zero if no such tax is imposed on such

2 income by the foreign insurer's state of domicile. For the

3 purposes of this subsection (d-1), an inter-affiliate includes

4 a mutual insurer under common management.

5 (1) For the purposes of subsection (d-1), in no event

6 shall the sum of the rates of tax imposed by subsections

7 (b) and (d) be reduced below the rate at which the sum of:

8 (A) the total amount of tax imposed on such foreign

9 insurer under this Act for a taxable year, net of all

10 credits allowed under this Act, plus

11 (B) the privilege tax imposed by Section 409 of the

12 Illinois Insurance Code, the fire insurance company

13 tax imposed by Section 12 of the Fire Investigation

14 Act, and the fire department taxes imposed under

15 Section 11-10-1 of the Illinois Municipal Code,

16 equals 1.25% for taxable years ending prior to December 31,

17 2003, or 1.75% for taxable years ending on or after

18 December 31, 2003, of the net taxable premiums written for

19 the taxable year, as described by subsection (1) of Section

20 409 of the Illinois Insurance Code. This paragraph will in

21 no event increase the rates imposed under subsections (b)

22 and (d).

23 (2) Any reduction in the rates of tax imposed by this

24 subsection shall be applied first against the rates imposed

25 by subsection (b) and only after the tax imposed by

26 subsection (a) net of all credits allowed under this

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1 Section other than the credit allowed under subsection (i)

2 has been reduced to zero, against the rates imposed by

3 subsection (d).

4 This subsection (d-1) is exempt from the provisions of

5 Section 250.

6 (e) Investment credit. A taxpayer shall be allowed a credit

7 against the Personal Property Tax Replacement Income Tax for

8 investment in qualified property.

9 (1) A taxpayer shall be allowed a credit equal to .5%

10 of the basis of qualified property placed in service during

11 the taxable year, provided such property is placed in

12 service on or after July 1, 1984. There shall be allowed an

13 additional credit equal to .5% of the basis of qualified

14 property placed in service during the taxable year,

15 provided such property is placed in service on or after

16 July 1, 1986, and the taxpayer's base employment within

17 Illinois has increased by 1% or more over the preceding

18 year as determined by the taxpayer's employment records

19 filed with the Illinois Department of Employment Security.

20 Taxpayers who are new to Illinois shall be deemed to have

21 met the 1% growth in base employment for the first year in

22 which they file employment records with the Illinois

23 Department of Employment Security. The provisions added to

24 this Section by Public Act 85-1200 (and restored by Public

25 Act 87-895) shall be construed as declaratory of existing

26 law and not as a new enactment. If, in any year, the

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1 increase in base employment within Illinois over the

2 preceding year is less than 1%, the additional credit shall

3 be limited to that percentage times a fraction, the

4 numerator of which is .5% and the denominator of which is

5 1%, but shall not exceed .5%. The investment credit shall

6 not be allowed to the extent that it would reduce a

7 taxpayer's liability in any tax year below zero, nor may

8 any credit for qualified property be allowed for any year

9 other than the year in which the property was placed in

10 service in Illinois. For tax years ending on or after

11 December 31, 1987, and on or before December 31, 1988, the

12 credit shall be allowed for the tax year in which the

13 property is placed in service, or, if the amount of the

14 credit exceeds the tax liability for that year, whether it

15 exceeds the original liability or the liability as later

16 amended, such excess may be carried forward and applied to

17 the tax liability of the 5 taxable years following the

18 excess credit years if the taxpayer (i) makes investments

19 which cause the creation of a minimum of 2,000 full-time

20 equivalent jobs in Illinois, (ii) is located in an

21 enterprise zone established pursuant to the Illinois

22 Enterprise Zone Act and (iii) is certified by the

23 Department of Commerce and Community Affairs (now

24 Department of Commerce and Economic Opportunity) as

25 complying with the requirements specified in clause (i) and

26 (ii) by July 1, 1986. The Department of Commerce and

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1 Community Affairs (now Department of Commerce and Economic

2 Opportunity) shall notify the Department of Revenue of all

3 such certifications immediately. For tax years ending

4 after December 31, 1988, the credit shall be allowed for

5 the tax year in which the property is placed in service,

6 or, if the amount of the credit exceeds the tax liability

7 for that year, whether it exceeds the original liability or

8 the liability as later amended, such excess may be carried

9 forward and applied to the tax liability of the 5 taxable

10 years following the excess credit years. The credit shall

11 be applied to the earliest year for which there is a

12 liability. If there is credit from more than one tax year

13 that is available to offset a liability, earlier credit

14 shall be applied first.

15 (2) The term "qualified property" means property

16 which:

17 (A) is tangible, whether new or used, including

18 buildings and structural components of buildings and

19 signs that are real property, but not including land or

20 improvements to real property that are not a structural

21 component of a building such as landscaping, sewer

22 lines, local access roads, fencing, parking lots, and

23 other appurtenances;

24 (B) is depreciable pursuant to Section 167 of the

25 Internal Revenue Code, except that "3-year property"

26 as defined in Section 168(c)(2)(A) of that Code is not

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1 eligible for the credit provided by this subsection

2 (e);

3 (C) is acquired by purchase as defined in Section

4 179(d) of the Internal Revenue Code;

5 (D) is used in Illinois by a taxpayer who is

6 primarily engaged in manufacturing, or in mining coal

7 or fluorite, or in retailing, or was placed in service

8 on or after July 1, 2006 in a River Edge Redevelopment

9 Zone established pursuant to the River Edge

10 Redevelopment Zone Act; and

11 (E) has not previously been used in Illinois in

12 such a manner and by such a person as would qualify for

13 the credit provided by this subsection (e) or

14 subsection (f).

15 (3) For purposes of this subsection (e),

16 "manufacturing" means the material staging and production

17 of tangible personal property by procedures commonly

18 regarded as manufacturing, processing, fabrication, or

19 assembling which changes some existing material into new

20 shapes, new qualities, or new combinations. For purposes of

21 this subsection (e) the term "mining" shall have the same

22 meaning as the term "mining" in Section 613(c) of the

23 Internal Revenue Code. For purposes of this subsection (e),

24 the term "retailing" means the sale of tangible personal

25 property for use or consumption and not for resale, or

26 services rendered in conjunction with the sale of tangible

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1 personal property for use or consumption and not for

2 resale. For purposes of this subsection (e), "tangible

3 personal property" has the same meaning as when that term

4 is used in the Retailers' Occupation Tax Act, and, for

5 taxable years ending after December 31, 2008, does not

6 include the generation, transmission, or distribution of

7 electricity.

8 (4) The basis of qualified property shall be the basis

9 used to compute the depreciation deduction for federal

10 income tax purposes.

11 (5) If the basis of the property for federal income tax

12 depreciation purposes is increased after it has been placed

13 in service in Illinois by the taxpayer, the amount of such

14 increase shall be deemed property placed in service on the

15 date of such increase in basis.

16 (6) The term "placed in service" shall have the same

17 meaning as under Section 46 of the Internal Revenue Code.

18 (7) If during any taxable year, any property ceases to

19 be qualified property in the hands of the taxpayer within

20 48 months after being placed in service, or the situs of

21 any qualified property is moved outside Illinois within 48

22 months after being placed in service, the Personal Property

23 Tax Replacement Income Tax for such taxable year shall be

24 increased. Such increase shall be determined by (i)

25 recomputing the investment credit which would have been

26 allowed for the year in which credit for such property was

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1 originally allowed by eliminating such property from such

2 computation and, (ii) subtracting such recomputed credit

3 from the amount of credit previously allowed. For the

4 purposes of this paragraph (7), a reduction of the basis of

5 qualified property resulting from a redetermination of the

6 purchase price shall be deemed a disposition of qualified

7 property to the extent of such reduction.

8 (8) Unless the investment credit is extended by law,

9 the basis of qualified property shall not include costs

10 incurred after December 31, 2018, except for costs incurred

11 pursuant to a binding contract entered into on or before

12 December 31, 2018.

13 (9) Each taxable year ending before December 31, 2000,

14 a partnership may elect to pass through to its partners the

15 credits to which the partnership is entitled under this

16 subsection (e) for the taxable year. A partner may use the

17 credit allocated to him or her under this paragraph only

18 against the tax imposed in subsections (c) and (d) of this

19 Section. If the partnership makes that election, those

20 credits shall be allocated among the partners in the

21 partnership in accordance with the rules set forth in

22 Section 704(b) of the Internal Revenue Code, and the rules

23 promulgated under that Section, and the allocated amount of

24 the credits shall be allowed to the partners for that

25 taxable year. The partnership shall make this election on

26 its Personal Property Tax Replacement Income Tax return for

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1 that taxable year. The election to pass through the credits

2 shall be irrevocable.

3 For taxable years ending on or after December 31, 2000,

4 a partner that qualifies its partnership for a subtraction

5 under subparagraph (I) of paragraph (2) of subsection (d)

6 of Section 203 or a shareholder that qualifies a Subchapter

7 S corporation for a subtraction under subparagraph (S) of

8 paragraph (2) of subsection (b) of Section 203 shall be

9 allowed a credit under this subsection (e) equal to its

10 share of the credit earned under this subsection (e) during

11 the taxable year by the partnership or Subchapter S

12 corporation, determined in accordance with the

13 determination of income and distributive share of income

14 under Sections 702 and 704 and Subchapter S of the Internal

15 Revenue Code. This paragraph is exempt from the provisions

16 of Section 250.

17 (f) Investment credit; Enterprise Zone; River Edge

18 Redevelopment Zone.

19 (1) A taxpayer shall be allowed a credit against the

20 tax imposed by subsections (a) and (b) of this Section for

21 investment in qualified property which is placed in service

22 in an Enterprise Zone created pursuant to the Illinois

23 Enterprise Zone Act or, for property placed in service on

24 or after July 1, 2006, a River Edge Redevelopment Zone

25 established pursuant to the River Edge Redevelopment Zone

26 Act. For partners, shareholders of Subchapter S

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1 corporations, and owners of limited liability companies,

2 if the liability company is treated as a partnership for

3 purposes of federal and State income taxation, there shall

4 be allowed a credit under this subsection (f) to be

5 determined in accordance with the determination of income

6 and distributive share of income under Sections 702 and 704

7 and Subchapter S of the Internal Revenue Code. The credit

8 shall be .5% of the basis for such property. The credit

9 shall be available only in the taxable year in which the

10 property is placed in service in the Enterprise Zone or

11 River Edge Redevelopment Zone and shall not be allowed to

12 the extent that it would reduce a taxpayer's liability for

13 the tax imposed by subsections (a) and (b) of this Section

14 to below zero. For tax years ending on or after December

15 31, 1985, the credit shall be allowed for the tax year in

16 which the property is placed in service, or, if the amount

17 of the credit exceeds the tax liability for that year,

18 whether it exceeds the original liability or the liability

19 as later amended, such excess may be carried forward and

20 applied to the tax liability of the 5 taxable years

21 following the excess credit year. The credit shall be

22 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, the credit

25 accruing first in time shall be applied first.

26 (2) The term qualified property means property which:

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1 (A) is tangible, whether new or used, including

2 buildings and structural components of buildings;

3 (B) is depreciable pursuant to Section 167 of the

4 Internal Revenue Code, except that "3-year property"

5 as defined in Section 168(c)(2)(A) of that Code is not

6 eligible for the credit provided by this subsection

7 (f);

8 (C) is acquired by purchase as defined in Section

9 179(d) of the Internal Revenue Code;

10 (D) is used in the Enterprise Zone or River Edge

11 Redevelopment Zone by the taxpayer; and

12 (E) has not been previously used in Illinois in

13 such a manner and by such a person as would qualify for

14 the credit provided by this subsection (f) or

15 subsection (e).

16 (3) The basis of qualified property shall be the basis

17 used to compute the depreciation deduction for federal

18 income tax purposes.

19 (4) If the basis of the property for federal income tax

20 depreciation purposes is increased after it has been placed

21 in service in the Enterprise Zone or River Edge

22 Redevelopment Zone by the taxpayer, the amount of such

23 increase shall be deemed property placed in service on the

24 date of such increase in basis.

25 (5) The term "placed in service" shall have the same

26 meaning as under Section 46 of the Internal Revenue Code.

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1 (6) If during any taxable year, any property ceases to

2 be qualified property in the hands of the taxpayer within

3 48 months after being placed in service, or the situs of

4 any qualified property is moved outside the Enterprise Zone

5 or River Edge Redevelopment Zone within 48 months after

6 being placed in service, the tax imposed under subsections

7 (a) and (b) of this Section for such taxable year shall be

8 increased. Such increase shall be determined by (i)

9 recomputing the investment credit which would have been

10 allowed for the year in which credit for such property was

11 originally allowed by eliminating such property from such

12 computation, and (ii) subtracting such recomputed credit

13 from the amount of credit previously allowed. For the

14 purposes of this paragraph (6), a reduction of the basis of

15 qualified property resulting from a redetermination of the

16 purchase price shall be deemed a disposition of qualified

17 property to the extent of such reduction.

18 (7) There shall be allowed an additional credit equal

19 to 0.5% of the basis of qualified property placed in

20 service during the taxable year in a River Edge

21 Redevelopment Zone, provided such property is placed in

22 service on or after July 1, 2006, and the taxpayer's base

23 employment within Illinois has increased by 1% or more over

24 the preceding year as determined by the taxpayer's

25 employment records filed with the Illinois Department of

26 Employment Security. Taxpayers who are new to Illinois

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1 shall be deemed to have met the 1% growth in base

2 employment for the first year in which they file employment

3 records with the Illinois Department of Employment

4 Security. If, in any year, the increase in base employment

5 within Illinois over the preceding year is less than 1%,

6 the additional credit shall be limited to that percentage

7 times a fraction, the numerator of which is 0.5% and the

8 denominator of which is 1%, but shall not exceed 0.5%.

9 (g) (Blank).

10 (h) Investment credit; High Impact Business.

11 (1) Subject to subsections (b) and (b-5) of Section 5.5

12 of the Illinois Enterprise Zone Act, a taxpayer shall be

13 allowed a credit against the tax imposed by subsections (a)

14 and (b) of this Section for investment in qualified

15 property which is placed in service by a Department of

16 Commerce and Economic Opportunity designated High Impact

17 Business. The credit shall be .5% of the basis for such

18 property. The credit shall not be available (i) until the

19 minimum investments in qualified property set forth in

20 subdivision (a)(3)(A) of Section 5.5 of the Illinois

21 Enterprise Zone Act have been satisfied or (ii) until the

22 time authorized in subsection (b-5) of the Illinois

23 Enterprise Zone Act for entities designated as High Impact

24 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

25 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone

26 Act, and shall not be allowed to the extent that it would

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1 reduce a taxpayer's liability for the tax imposed by

2 subsections (a) and (b) of this Section to below zero. The

3 credit applicable to such investments shall be taken in the

4 taxable year in which such investments have been completed.

5 The credit for additional investments beyond the minimum

6 investment by a designated high impact business authorized

7 under subdivision (a)(3)(A) of Section 5.5 of the Illinois

8 Enterprise Zone Act shall be available only in the taxable

9 year in which the property is placed in service and shall

10 not be allowed to the extent that it would reduce a

11 taxpayer's liability for the tax imposed by subsections (a)

12 and (b) of this Section to below zero. For tax years ending

13 on or after December 31, 1987, the credit shall be allowed

14 for the tax year in which the property is placed in

15 service, or, if the amount of the credit exceeds the tax

16 liability for that year, whether it exceeds the original

17 liability or the liability as later amended, such excess

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

19 the 5 taxable years following the excess credit year. The

20 credit shall be applied to the earliest year for which

21 there is a liability. If there is credit from more than one

22 tax year that is available to offset a liability, the

23 credit accruing first in time shall be applied first.

24 Changes made in this subdivision (h)(1) by Public Act

25 88-670 restore changes made by Public Act 85-1182 and

26 reflect existing law.

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1 (2) The term qualified property means property which:

2 (A) is tangible, whether new or used, including

3 buildings and structural components of buildings;

4 (B) is depreciable pursuant to Section 167 of the

5 Internal Revenue Code, except that "3-year property"

6 as defined in Section 168(c)(2)(A) of that Code is not

7 eligible for the credit provided by this subsection

8 (h);

9 (C) is acquired by purchase as defined in Section

10 179(d) of the Internal Revenue Code; and

11 (D) is not eligible for the Enterprise Zone

12 Investment Credit provided by subsection (f) of this

13 Section.

14 (3) The basis of qualified property shall be the basis

15 used to compute the depreciation deduction for federal

16 income tax purposes.

17 (4) If the basis of the property for federal income tax

18 depreciation purposes is increased after it has been placed

19 in service in a federally designated Foreign Trade Zone or

20 Sub-Zone located in Illinois by the taxpayer, the amount of

21 such increase shall be deemed property placed in service on

22 the date of such increase in basis.

23 (5) The term "placed in service" shall have the same

24 meaning as under Section 46 of the Internal Revenue Code.

25 (6) If during any taxable year ending on or before

26 December 31, 1996, any property ceases to be qualified

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1 property in the hands of the taxpayer within 48 months

2 after being placed in service, or the situs of any

3 qualified property is moved outside Illinois within 48

4 months after being placed in service, the tax imposed under

5 subsections (a) and (b) of this Section for such taxable

6 year shall be increased. Such increase shall be determined

7 by (i) recomputing the investment credit which would have

8 been allowed for the year in which credit for such property

9 was originally allowed by eliminating such property from

10 such computation, and (ii) subtracting such recomputed

11 credit from the amount of credit previously allowed. For

12 the purposes of this paragraph (6), a reduction of the

13 basis of qualified property resulting from a

14 redetermination of the purchase price shall be deemed a

15 disposition of qualified property to the extent of such

16 reduction.

17 (7) Beginning with tax years ending after December 31,

18 1996, if a taxpayer qualifies for the credit under this

19 subsection (h) and thereby is granted a tax abatement and

20 the taxpayer relocates its entire facility in violation of

21 the explicit terms and length of the contract under Section

22 18-183 of the Property Tax Code, the tax imposed under

23 subsections (a) and (b) of this Section shall be increased

24 for the taxable year in which the taxpayer relocated its

25 facility by an amount equal to the amount of credit

26 received by the taxpayer under this subsection (h).

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1 (i) Credit for Personal Property Tax Replacement Income

2 Tax. For tax years ending prior to December 31, 2003, a credit

3 shall be allowed against the tax imposed by subsections (a) and

4 (b) of this Section for the tax imposed by subsections (c) and

5 (d) of this Section. This credit shall be computed by

6 multiplying the tax imposed by subsections (c) and (d) of this

7 Section by a fraction, the numerator of which is base income

8 allocable to Illinois and the denominator of which is Illinois

9 base income, and further multiplying the product by the tax

10 rate imposed by subsections (a) and (b) of this Section.

11 Any credit earned on or after December 31, 1986 under this

12 subsection which is unused in the year the credit is computed

13 because it exceeds the tax liability imposed by subsections (a)

14 and (b) for that year (whether it exceeds the original

15 liability or the liability as later amended) may be carried

16 forward and applied to the tax liability imposed by subsections

17 (a) and (b) of the 5 taxable years following the excess credit

18 year, provided that no credit may be carried forward to any

19 year ending on or after December 31, 2003. This credit shall be

20 applied first to the earliest year for which there is a

21 liability. If there is a credit under this subsection from more

22 than one tax year that is available to offset a liability the

23 earliest credit arising under this subsection shall be applied

24 first.

25 If, during any taxable year ending on or after December 31,

26 1986, the tax imposed by subsections (c) and (d) of this

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1 Section for which a taxpayer has claimed a credit under this

2 subsection (i) is reduced, the amount of credit for such tax

3 shall also be reduced. Such reduction shall be determined by

4 recomputing the credit to take into account the reduced tax

5 imposed by subsections (c) and (d). If any portion of the

6 reduced amount of credit has been carried to a different

7 taxable year, an amended return shall be filed for such taxable

8 year to reduce the amount of credit claimed.

9 (j) Training expense credit. Beginning with tax years

10 ending on or after December 31, 1986 and prior to December 31,

11 2003, a taxpayer shall be allowed a credit against the tax

12 imposed by subsections (a) and (b) under this Section for all

13 amounts paid or accrued, on behalf of all persons employed by

14 the taxpayer in Illinois or Illinois residents employed outside

15 of Illinois by a taxpayer, for educational or vocational

16 training in semi-technical or technical fields or semi-skilled

17 or skilled fields, which were deducted from gross income in the

18 computation of taxable income. The credit against the tax

19 imposed by subsections (a) and (b) shall be 1.6% of such

20 training expenses. For partners, shareholders of subchapter S

21 corporations, and owners of limited liability companies, if the

22 liability company is treated as a partnership for purposes of

23 federal and State income taxation, there shall be allowed a

24 credit under this subsection (j) to be determined in accordance

25 with the determination of income and distributive share of

26 income under Sections 702 and 704 and subchapter S of the

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1 Internal Revenue Code.

2 Any credit allowed under this subsection which is unused in

3 the year the credit is earned may be carried forward to each of

4 the 5 taxable years following the year for which the credit is

5 first computed until it is used. This credit shall be applied

6 first to the earliest year for which there is a liability. If

7 there is a credit under this subsection from more than one tax

8 year that is available to offset a liability the earliest

9 credit arising under this subsection shall be applied first. No

10 carryforward credit may be claimed in any tax year ending on or

11 after December 31, 2003.

12 (k) Research and development credit. For tax years ending

13 after July 1, 1990 and prior to December 31, 2003, and

14 beginning again for tax years ending on or after December 31,

15 2004, and ending prior to January 1, 2016, a taxpayer shall be

16 allowed a credit against the tax imposed by subsections (a) and

17 (b) of this Section for increasing research activities in this

18 State. The credit allowed against the tax imposed by

19 subsections (a) and (b) shall be equal to 6 1/2% of the

20 qualifying expenditures for increasing research activities in

21 this State. For partners, shareholders of subchapter S

22 corporations, and owners of limited liability companies, if the

23 liability company is treated as a partnership for purposes of

24 federal and State income taxation, there shall be allowed a

25 credit under this subsection to be determined in accordance

26 with the determination of income and distributive share of

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1 income under Sections 702 and 704 and subchapter S of the

2 Internal Revenue Code.

3 For purposes of this subsection, "qualifying expenditures"

4 means the qualifying expenditures as defined for the federal

5 credit for increasing research activities which would be

6 allowable under Section 41 of the Internal Revenue Code and

7 which are conducted in this State, "qualifying expenditures for

8 increasing research activities in this State" means the excess

9 of qualifying expenditures for the taxable year in which

10 incurred over qualifying expenditures for the base period,

11 "qualifying expenditures for the base period" means the average

12 of the qualifying expenditures for each year in the base

13 period, and "base period" means the 3 taxable years immediately

14 preceding the taxable year for which the determination is being

15 made.

16 Any credit in excess of the tax liability for the taxable

17 year may be carried forward. A taxpayer may elect to have the

18 unused credit shown on its final completed return carried over

19 as a credit against the tax liability for the following 5

20 taxable years or until it has been fully used, whichever occurs

21 first; provided that no credit earned in a tax year ending

22 prior to December 31, 2003 may be carried forward to any year

23 ending on or after December 31, 2003.

24 If an unused credit is carried forward to a given year from

25 2 or more earlier years, that credit arising in the earliest

26 year will be applied first against the tax liability for the

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1 given year. If a tax liability for the given year still

2 remains, the credit from the next earliest year will then be

3 applied, and so on, until all credits have been used or no tax

4 liability for the given year remains. Any remaining unused

5 credit or credits then will be carried forward to the next

6 following year in which a tax liability is incurred, except

7 that no credit can be carried forward to a year which is more

8 than 5 years after the year in which the expense for which the

9 credit is given was incurred.

10 No inference shall be drawn from this amendatory Act of the

11 91st General Assembly in construing this Section for taxable

12 years beginning before January 1, 1999.

13 (l) Environmental Remediation Tax Credit.

14 (i) For tax years ending after December 31, 1997 and on

15 or before December 31, 2001, a taxpayer shall be allowed a

16 credit against the tax imposed by subsections (a) and (b)

17 of this Section for certain amounts paid for unreimbursed

18 eligible remediation costs, as specified in this

19 subsection. For purposes of this Section, "unreimbursed

20 eligible remediation costs" means costs approved by the

21 Illinois Environmental Protection Agency ("Agency") under

22 Section 58.14 of the Environmental Protection Act that were

23 paid in performing environmental remediation at a site for

24 which a No Further Remediation Letter was issued by the

25 Agency and recorded under Section 58.10 of the

26 Environmental Protection Act. The credit must be claimed

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1 for the taxable year in which Agency approval of the

2 eligible remediation costs is granted. The credit is not

3 available to any taxpayer if the taxpayer or any related

4 party caused or contributed to, in any material respect, a

5 release of regulated substances on, in, or under the site

6 that was identified and addressed by the remedial action

7 pursuant to the Site Remediation Program of the

8 Environmental Protection Act. After the Pollution Control

9 Board rules are adopted pursuant to the Illinois

10 Administrative Procedure Act for the administration and

11 enforcement of Section 58.9 of the Environmental

12 Protection Act, determinations as to credit availability

13 for purposes of this Section shall be made consistent with

14 those rules. For purposes of this Section, "taxpayer"

15 includes a person whose tax attributes the taxpayer has

16 succeeded to under Section 381 of the Internal Revenue Code

17 and "related party" includes the persons disallowed a

18 deduction for losses by paragraphs (b), (c), and (f)(1) of

19 Section 267 of the Internal Revenue Code by virtue of being

20 a related taxpayer, as well as any of its partners. The

21 credit allowed against the tax imposed by subsections (a)

22 and (b) shall be equal to 25% of the unreimbursed eligible

23 remediation costs in excess of $100,000 per site, except

24 that the $100,000 threshold shall not apply to any site

25 contained in an enterprise zone as determined by the

26 Department of Commerce and Community Affairs (now

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1 Department of Commerce and Economic Opportunity). The

2 total credit allowed shall not exceed $40,000 per year with

3 a maximum total of $150,000 per site. For partners and

4 shareholders of subchapter S corporations, there shall be

5 allowed a credit under this subsection to be determined in

6 accordance with the determination of income and

7 distributive share of income under Sections 702 and 704 and

8 subchapter S of the Internal Revenue Code.

9 (ii) A credit allowed under this subsection that is

10 unused in the year the credit is earned may be carried

11 forward to each of the 5 taxable years following the year

12 for which the credit is first earned until it is used. The

13 term "unused credit" does not include any amounts of

14 unreimbursed eligible remediation costs in excess of the

15 maximum credit per site authorized under paragraph (i).

16 This credit shall be applied first to the earliest year for

17 which there is a liability. If there is a credit under this

18 subsection from more than one tax year that is available to

19 offset a liability, the earliest credit arising under this

20 subsection shall be applied first. A credit allowed under

21 this subsection may be sold to a buyer as part of a sale of

22 all or part of the remediation site for which the credit

23 was granted. The purchaser of a remediation site and the

24 tax credit shall succeed to the unused credit and remaining

25 carry-forward period of the seller. To perfect the

26 transfer, the assignor shall record the transfer in the

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1 chain of title for the site and provide written notice to

2 the Director of the Illinois Department of Revenue of the

3 assignor's intent to sell the remediation site and the

4 amount of the tax credit to be transferred as a portion of

5 the sale. In no event may a credit be transferred to any

6 taxpayer if the taxpayer or a related party would not be

7 eligible under the provisions of subsection (i).

8 (iii) For purposes of this Section, the term "site"

9 shall have the same meaning as under Section 58.2 of the

10 Environmental Protection Act.

11 (m) Education expense credit. Beginning with tax years

12 ending after December 31, 1999, a taxpayer who is the custodian

13 of one or more qualifying pupils shall be allowed a credit

14 against the tax imposed by subsections (a) and (b) of this

15 Section for qualified education expenses incurred on behalf of

16 the qualifying pupils. The credit shall be equal to 25% of

17 qualified education expenses, but in no event may the total

18 credit under this subsection claimed by a family that is the

19 custodian of qualifying pupils exceed $500. In no event shall a

20 credit under this subsection reduce the taxpayer's liability

21 under this Act to less than zero. This subsection is exempt

22 from the provisions of Section 250 of this Act.

23 For purposes of this subsection:

24 "Qualifying pupils" means individuals who (i) are

25 residents of the State of Illinois, (ii) are under the age of

26 21 at the close of the school year for which a credit is

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1 sought, and (iii) during the school year for which a credit is

2 sought were full-time pupils enrolled in a kindergarten through

3 twelfth grade education program at any school, as defined in

4 this subsection.

5 "Qualified education expense" means the amount incurred on

6 behalf of a qualifying pupil in excess of $250 for tuition,

7 book fees, and lab fees at the school in which the pupil is

8 enrolled during the regular school year.

9 "School" means any public or nonpublic elementary or

10 secondary school in Illinois that is in compliance with Title

11 VI of the Civil Rights Act of 1964 and attendance at which

12 satisfies the requirements of Section 26-1 of the School Code,

13 except that nothing shall be construed to require a child to

14 attend any particular public or nonpublic school to qualify for

15 the credit under this Section.

16 "Custodian" means, with respect to qualifying pupils, an

17 Illinois resident who is a parent, the parents, a legal

18 guardian, or the legal guardians of the qualifying pupils.

19 (n) River Edge Redevelopment Zone site remediation tax

20 credit.

21 (i) For tax years ending on or after December 31, 2006,

22 a taxpayer shall be allowed a credit against the tax

23 imposed by subsections (a) and (b) of this Section for

24 certain amounts paid for unreimbursed eligible remediation

25 costs, as specified in this subsection. For purposes of

26 this Section, "unreimbursed eligible remediation costs"

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1 means costs approved by the Illinois Environmental

2 Protection Agency ("Agency") under Section 58.14a of the

3 Environmental Protection Act that were paid in performing

4 environmental remediation at a site within a River Edge

5 Redevelopment Zone for which a No Further Remediation

6 Letter was issued by the Agency and recorded under Section

7 58.10 of the Environmental Protection Act. The credit must

8 be claimed for the taxable year in which Agency approval of

9 the eligible remediation costs is granted. The credit is

10 not available to any taxpayer if the taxpayer or any

11 related party caused or contributed to, in any material

12 respect, a release of regulated substances on, in, or under

13 the site that was identified and addressed by the remedial

14 action pursuant to the Site Remediation Program of the

15 Environmental Protection Act. Determinations as to credit

16 availability for purposes of this Section shall be made

17 consistent with rules adopted by the Pollution Control

18 Board pursuant to the Illinois Administrative Procedure

19 Act for the administration and enforcement of Section 58.9

20 of the Environmental Protection Act. For purposes of this

21 Section, "taxpayer" includes a person whose tax attributes

22 the taxpayer has succeeded to under Section 381 of the

23 Internal Revenue Code and "related party" includes the

24 persons disallowed a deduction for losses by paragraphs

25 (b), (c), and (f)(1) of Section 267 of the Internal Revenue

26 Code by virtue of being a related taxpayer, as well as any

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1 of its partners. The credit allowed against the tax imposed

2 by subsections (a) and (b) shall be equal to 25% of the

3 unreimbursed eligible remediation costs in excess of

4 $100,000 per site.

5 (ii) A credit allowed under this subsection that is

6 unused in the year the credit is earned may be carried

7 forward to each of the 5 taxable years following the year

8 for which the credit is first earned until it is used. This

9 credit shall be applied first to the earliest year for

10 which there is a liability. If there is a credit under this

11 subsection from more than one tax year that is available to

12 offset a liability, the earliest credit arising under this

13 subsection shall be applied first. A credit allowed under

14 this subsection may be sold to a buyer as part of a sale of

15 all or part of the remediation site for which the credit

16 was granted. The purchaser of a remediation site and the

17 tax credit shall succeed to the unused credit and remaining

18 carry-forward period of the seller. To perfect the

19 transfer, the assignor shall record the transfer in the

20 chain of title for the site and provide written notice to

21 the Director of the Illinois Department of Revenue of the

22 assignor's intent to sell the remediation site and the

23 amount of the tax credit to be transferred as a portion of

24 the sale. In no event may a credit be transferred to any

25 taxpayer if the taxpayer or a related party would not be

26 eligible under the provisions of subsection (i).

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1 (iii) For purposes of this Section, the term "site"

2 shall have the same meaning as under Section 58.2 of the

3 Environmental Protection Act.

4 (o) For each of taxable years during the Compassionate Use

5 of Medical Cannabis Pilot Program, a surcharge is imposed on

6 all taxpayers on income arising from the sale or exchange of

7 capital assets, depreciable business property, real property

8 used in the trade or business, and Section 197 intangibles of

9 an organization registrant under the Compassionate Use of

10 Medical Cannabis Pilot Program Act. The amount of the surcharge

11 is equal to the amount of federal income tax liability for the

12 taxable year attributable to those sales and exchanges. The

13 surcharge imposed does not apply if:

14 (1) the medical cannabis cultivation center

15 registration, medical cannabis dispensary registration, or

16 the property of a registration is transferred as a result

17 of any of the following:

18 (A) bankruptcy, a receivership, or a debt

19 adjustment initiated by or against the initial

20 registration or the substantial owners of the initial

21 registration;

22 (B) cancellation, revocation, or termination of

23 any registration by the Illinois Department of Public

24 Health;

25 (C) a determination by the Illinois Department of

26 Public Health that transfer of the registration is in

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1 the best interests of Illinois qualifying patients as

2 defined by the Compassionate Use of Medical Cannabis

3 Pilot Program Act;

4 (D) the death of an owner of the equity interest in

5 a registrant;

6 (E) the acquisition of a controlling interest in

7 the stock or substantially all of the assets of a

8 publicly traded company;

9 (F) a transfer by a parent company to a wholly

10 owned subsidiary; or

11 (G) the transfer or sale to or by one person to

12 another person where both persons were initial owners

13 of the registration when the registration was issued;

14 or

15 (2) the cannabis cultivation center registration,

16 medical cannabis dispensary registration, or the

17 controlling interest in a registrant's property is

18 transferred in a transaction to lineal descendants in which

19 no gain or loss is recognized or as a result of a

20 transaction in accordance with Section 351 of the Internal

21 Revenue Code in which no gain or loss is recognized.

22 (Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,

23 eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,

24 eff. 7-16-14.)

25 (35 ILCS 5/303) (from Ch. 120, par. 3-303)

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1 Sec. 303. (a) In general. Any item of capital gain or loss,

2 and any item of income from rents or royalties from real or

3 tangible personal property, interest, dividends, and patent or

4 copyright royalties, and prizes awarded under the Illinois

5 Lottery Law, and, for taxable years ending on or after December

6 31, 2017, wagering and gambling winnings from Illinois sources

7 as set forth in subsection (e-1) of this Section, to the extent

8 such item constitutes nonbusiness income, together with any

9 item of deduction directly allocable thereto, shall be

10 allocated by any person other than a resident as provided in

11 this Section.

12 (b) Capital gains and losses.

13 (1) Real property. Capital gains and losses from sales

14 or exchanges of real property are allocable to this State

15 if the property is located in this State.

16 (2) Tangible personal property. Capital gains and

17 losses from sales or exchanges of tangible personal

18 property are allocable to this State if, at the time of

19 such sale or exchange:

20 (A) The property had its situs in this State; or

21 (B) The taxpayer had its commercial domicile in

22 this State and was not taxable in the state in which

23 the property had its situs.

24 (3) Intangibles. Capital gains and losses from sales or

25 exchanges of intangible personal property are allocable to

26 this State if the taxpayer had its commercial domicile in

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1 this State at the time of such sale or exchange.

2 (c) Rents and royalties.

3 (1) Real property. Rents and royalties from real

4 property are allocable to this State if the property is

5 located in this State.

6 (2) Tangible personal property. Rents and royalties

7 from tangible personal property are allocable to this

8 State:

9 (A) If and to the extent that the property is

10 utilized in this State; or

11 (B) In their entirety if, at the time such rents or

12 royalties were paid or accrued, the taxpayer had its

13 commercial domicile in this State and was not organized

14 under the laws of or taxable with respect to such rents

15 or royalties in the state in which the property was

16 utilized. The extent of utilization of tangible

17 personal property in a state is determined by

18 multiplying the rents or royalties derived from such

19 property by a fraction, the numerator of which is the

20 number of days of physical location of the property in

21 the state during the rental or royalty period in the

22 taxable year and the denominator of which is the number

23 of days of physical location of the property everywhere

24 during all rental or royalty periods in the taxable

25 year. If the physical location of the property during

26 the rental or royalty period is unknown or

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1 unascertainable by the taxpayer, tangible personal

2 property is utilized in the state in which the property

3 was located at the time the rental or royalty payer

4 obtained possession.

5 (d) Patent and copyright royalties.

6 (1) Allocation. Patent and copyright royalties are

7 allocable to this State:

8 (A) If and to the extent that the patent or

9 copyright is utilized by the payer in this State; or

10 (B) If and to the extent that the patent or

11 copyright is utilized by the payer in a state in which

12 the taxpayer is not taxable with respect to such

13 royalties and, at the time such royalties were paid or

14 accrued, the taxpayer had its commercial domicile in

15 this State.

16 (2) Utilization.

17 (A) A patent is utilized in a state to the extent

18 that it is employed in production, fabrication,

19 manufacturing or other processing in the state or to

20 the extent that a patented product is produced in the

21 state. If the basis of receipts from patent royalties

22 does not permit allocation to states or if the

23 accounting procedures do not reflect states of

24 utilization, the patent is utilized in this State if

25 the taxpayer has its commercial domicile in this State.

26 (B) A copyright is utilized in a state to the

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1 extent that printing or other publication originates

2 in the state. If the basis of receipts from copyright

3 royalties does not permit allocation to states or if

4 the accounting procedures do not reflect states of

5 utilization, the copyright is utilized in this State if

6 the taxpayer has its commercial domicile in this State.

7 (e) Illinois lottery prizes. Prizes awarded under the

8 Illinois Lottery Law are allocable to this State. Payments

9 received in taxable years ending on or after December 31, 2013,

10 from the assignment of a prize under Section 13.1 of the

11 Illinois Lottery Law are allocable to this State.

12 (e-1) Wagering and gambling winnings. Payments received in

13 taxable years ending on or after December 31, 2017 of winnings

14 from pari-mutuel wagering conducted at a wagering facility

15 licensed under the Illinois Horse Racing Act of 1975 and 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 allocable to this State.

19 (e-5) Unemployment benefits. Unemployment benefits paid by

20 the Illinois Department of Employment Security are allocable to

21 this State.

22 (f) Taxability in other state. For purposes of allocation

23 of income pursuant to this Section, a taxpayer is taxable in

24 another state if:

25 (1) In that state he is subject to a net income tax, a

26 franchise tax measured by net income, a franchise tax for

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1 the privilege of doing business, or a corporate stock tax;

2 or

3 (2) That state has jurisdiction to subject the taxpayer

4 to a net income tax regardless of whether, in fact, the

5 state does or does not.

6 (g) Cross references.

7 (1) For allocation of interest and dividends by persons

8 other than residents, see Section 301(c)(2).

9 (2) For allocation of nonbusiness income by residents,

10 see Section 301(a).

11 (Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)

12 (35 ILCS 5/304) (from Ch. 120, par. 3-304)

13 Sec. 304. Business income of persons other than residents.

14 (a) In general. The business income of a person other than

15 a resident shall be allocated to this State if such person's

16 business income is derived solely from this State. If a person

17 other than a resident derives business income from this State

18 and one or more other states, then, for tax years ending on or

19 before December 30, 1998, and except as otherwise provided by

20 this Section, such person's business income shall be

21 apportioned to this State by multiplying the income by a

22 fraction, the numerator of which is the sum of the property

23 factor (if any), the payroll factor (if any) and 200% of the

24 sales factor (if any), and the denominator of which is 4

25 reduced by the number of factors other than the sales factor

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1 which have a denominator of zero and by an additional 2 if the

2 sales factor has a denominator of zero. For tax years ending on

3 or after December 31, 1998, and except as otherwise provided by

4 this Section, persons other than residents who derive business

5 income from this State and one or more other states shall

6 compute their apportionment factor by weighting their

7 property, payroll, and sales factors as provided in subsection

8 (h) of this Section.

9 (1) Property factor.

10 (A) The property factor is a fraction, the numerator of

11 which is the average value of the person's real and

12 tangible personal property owned or rented and used in the

13 trade or business in this State during the taxable year and

14 the denominator of which is the average value of all the

15 person's real and tangible personal property owned or

16 rented and used in the trade or business during the taxable

17 year.

18 (B) Property owned by the person is valued at its

19 original cost. Property rented by the person is valued at 8

20 times the net annual rental rate. Net annual rental rate is

21 the annual rental rate paid by the person less any annual

22 rental rate received by the person from sub-rentals.

23 (C) The average value of property shall be determined

24 by averaging the values at the beginning and ending of the

25 taxable year but the Director may require the averaging of

26 monthly values during the taxable year if reasonably

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1 required to reflect properly the average value of the

2 person's property.

3 (2) Payroll factor.

4 (A) The payroll factor is a fraction, the numerator of

5 which is the total amount paid in this State during the

6 taxable year by the person for compensation, and the

7 denominator of which is the total compensation paid

8 everywhere during the taxable year.

9 (B) Compensation is paid in this State if:

10 (i) The individual's service is performed entirely

11 within this State;

12 (ii) The individual's service is performed both

13 within and without this State, but the service

14 performed without this State is incidental to the

15 individual's service performed within this State; or

16 (iii) Some of the service is performed within this

17 State and either the base of operations, or if there is

18 no base of operations, the place from which the service

19 is directed or controlled is within this State, or the

20 base of operations or the place from which the service

21 is directed or controlled is not in any state in which

22 some part of the service is performed, but the

23 individual's residence is in this State.

24 (iv) Compensation paid to nonresident professional

25 athletes.

26 (a) General. The Illinois source income of a

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1 nonresident individual who is a member of a

2 professional athletic team includes the portion of the

3 individual's total compensation for services performed

4 as a member of a professional athletic team during the

5 taxable year which the number of duty days spent within

6 this State performing services for the team in any

7 manner during the taxable year bears to the total

8 number of duty days spent both within and without this

9 State during the taxable year.

10 (b) Travel days. Travel days that do not involve

11 either a game, practice, team meeting, or other similar

12 team event are not considered duty days spent in this

13 State. However, such travel days are considered in the

14 total duty days spent both within and without this

15 State.

16 (c) Definitions. For purposes of this subpart

17 (iv):

18 (1) The term "professional athletic team"

19 includes, but is not limited to, any professional

20 baseball, basketball, football, soccer, or hockey

21 team.

22 (2) The term "member of a professional

23 athletic team" includes those employees who are

24 active players, players on the disabled list, and

25 any other persons required to travel and who travel

26 with and perform services on behalf of a

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1 professional athletic team on a regular basis.

2 This includes, but is not limited to, coaches,

3 managers, and trainers.

4 (3) Except as provided in items (C) and (D) of

5 this subpart (3), the term "duty days" means all

6 days during the taxable year from the beginning of

7 the professional athletic team's official

8 pre-season training period through the last game

9 in which the team competes or is scheduled to

10 compete. Duty days shall be counted for the year in

11 which they occur, including where a team's

12 official pre-season training period through the

13 last game in which the team competes or is

14 scheduled to compete, occurs during more than one

15 tax year.

16 (A) Duty days shall also include days on

17 which a member of a professional athletic team

18 performs service for a team on a date that does

19 not fall within the foregoing period (e.g.,

20 participation in instructional leagues, the

21 "All Star Game", or promotional "caravans").

22 Performing a service for a professional

23 athletic team includes conducting training and

24 rehabilitation activities, when such

25 activities are conducted at team facilities.

26 (B) Also included in duty days are game

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1 days, practice days, days spent at team

2 meetings, promotional caravans, preseason

3 training camps, and days served with the team

4 through all post-season games in which the team

5 competes or is scheduled to compete.

6 (C) Duty days for any person who joins a

7 team during the period from the beginning of

8 the professional athletic team's official

9 pre-season training period through the last

10 game in which the team competes, or is

11 scheduled to compete, shall begin on the day

12 that person joins the team. Conversely, duty

13 days for any person who leaves a team during

14 this period shall end on the day that person

15 leaves the team. Where a person switches teams

16 during a taxable year, a separate duty-day

17 calculation shall be made for the period the

18 person was with each team.

19 (D) Days for which a member of a

20 professional athletic team is not compensated

21 and is not performing services for the team in

22 any manner, including days when such member of

23 a professional athletic team has been

24 suspended without pay and prohibited from

25 performing any services for the team, shall not

26 be treated as duty days.

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1 (E) Days for which a member of a

2 professional athletic team is on the disabled

3 list and does not conduct rehabilitation

4 activities at facilities of the team, and is

5 not otherwise performing services for the team

6 in Illinois, shall not be considered duty days

7 spent in this State. All days on the disabled

8 list, however, are considered to be included in

9 total duty days spent both within and without

10 this State.

11 (4) The term "total compensation for services

12 performed as a member of a professional athletic

13 team" means the total compensation received during

14 the taxable year for services performed:

15 (A) from the beginning of the official

16 pre-season training period through the last

17 game in which the team competes or is scheduled

18 to compete during that taxable year; and

19 (B) during the taxable year on a date which

20 does not fall within the foregoing period

21 (e.g., participation in instructional leagues,

22 the "All Star Game", or promotional caravans).

23 This compensation shall include, but is not

24 limited to, salaries, wages, bonuses as described

25 in this subpart, and any other type of compensation

26 paid during the taxable year to a member of a

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1 professional athletic team for services performed

2 in that year. This compensation does not include

3 strike benefits, severance pay, termination pay,

4 contract or option year buy-out payments,

5 expansion or relocation payments, or any other

6 payments not related to services performed for the

7 team.

8 For purposes of this subparagraph, "bonuses"

9 included in "total compensation for services

10 performed as a member of a professional athletic

11 team" subject to the allocation described in

12 Section 302(c)(1) are: bonuses earned as a result

13 of play (i.e., performance bonuses) during the

14 season, including bonuses paid for championship,

15 playoff or "bowl" games played by a team, or for

16 selection to all-star league or other honorary

17 positions; and bonuses paid for signing a

18 contract, unless the payment of the signing bonus

19 is not conditional upon the signee playing any

20 games for the team or performing any subsequent

21 services for the team or even making the team, the

22 signing bonus is payable separately from the

23 salary and any other compensation, and the signing

24 bonus is nonrefundable.

25 (3) Sales factor.

26 (A) The sales factor is a fraction, the numerator of

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1 which is the total sales of the person in this State during

2 the taxable year, and the denominator of which is the total

3 sales of the person everywhere during the taxable year.

4 (B) Sales of tangible personal property are in this

5 State if:

6 (i) The property is delivered or shipped to a

7 purchaser, other than the United States government,

8 within this State regardless of the f. o. b. point or

9 other conditions of the sale; or

10 (ii) The property is shipped from an office, store,

11 warehouse, factory or other place of storage in this

12 State and either the purchaser is the United States

13 government or the person is not taxable in the state of

14 the purchaser; provided, however, that premises owned

15 or leased by a person who has independently contracted

16 with the seller for the printing of newspapers,

17 periodicals or books shall not be deemed to be an

18 office, store, warehouse, factory or other place of

19 storage for purposes of this Section. Sales of tangible

20 personal property are not in this State if the seller

21 and purchaser would be members of the same unitary

22 business group but for the fact that either the seller

23 or purchaser is a person with 80% or more of total

24 business activity outside of the United States and the

25 property is purchased for resale.

26 (B-1) Patents, copyrights, trademarks, and similar

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1 items of intangible personal property.

2 (i) Gross receipts from the licensing, sale, or

3 other disposition of a patent, copyright, trademark,

4 or similar item of intangible personal property, other

5 than gross receipts governed by paragraph (B-7) of this

6 item (3), are in this State to the extent the item is

7 utilized in this State during the year the gross

8 receipts are included in gross income.

9 (ii) Place of utilization.

10 (I) A patent is utilized in a state to the

11 extent that it is employed in production,

12 fabrication, manufacturing, or other processing in

13 the state or to the extent that a patented product

14 is produced in the state. If a patent is utilized

15 in more than one state, the extent to which it is

16 utilized in any one state shall be a fraction equal

17 to the gross receipts of the licensee or purchaser

18 from sales or leases of items produced,

19 fabricated, manufactured, or processed within that

20 state using the patent and of patented items

21 produced within that state, divided by the total of

22 such gross receipts for all states in which the

23 patent is utilized.

24 (II) A copyright is utilized in a state to the

25 extent that printing or other publication

26 originates in the state. If a copyright is utilized

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1 in more than one state, the extent to which it is

2 utilized in any one state shall be a fraction equal

3 to the gross receipts from sales or licenses of

4 materials printed or published in that state

5 divided by the total of such gross receipts for all

6 states in which the copyright is utilized.

7 (III) Trademarks and other items of intangible

8 personal property governed by this paragraph (B-1)

9 are utilized in the state in which the commercial

10 domicile of the licensee or purchaser is located.

11 (iii) If the state of utilization of an item of

12 property governed by this paragraph (B-1) cannot be

13 determined from the taxpayer's books and records or

14 from the books and records of any person related to the

15 taxpayer within the meaning of Section 267(b) of the

16 Internal Revenue Code, 26 U.S.C. 267, the gross

17 receipts attributable to that item shall be excluded

18 from both the numerator and the denominator of the

19 sales factor.

20 (B-2) Gross receipts from the license, sale, or other

21 disposition of patents, copyrights, trademarks, and

22 similar items of intangible personal property, other than

23 gross receipts governed by paragraph (B-7) of this item

24 (3), may be included in the numerator or denominator of the

25 sales factor only if gross receipts from licenses, sales,

26 or other disposition of such items comprise more than 50%

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1 of the taxpayer's total gross receipts included in gross

2 income during the tax year and during each of the 2

3 immediately preceding tax years; provided that, when a

4 taxpayer is a member of a unitary business group, such

5 determination shall be made on the basis of the gross

6 receipts of the entire unitary business group.

7 (B-5) For taxable years ending on or after December 31,

8 2008, except as provided in subsections (ii) through (vii),

9 receipts from the sale of telecommunications service or

10 mobile telecommunications service are in this State if the

11 customer's service address is in this State.

12 (i) For purposes of this subparagraph (B-5), the

13 following terms have the following meanings:

14 "Ancillary services" means services that are

15 associated with or incidental to the provision of

16 "telecommunications services", including but not

17 limited to "detailed telecommunications billing",

18 "directory assistance", "vertical service", and "voice

19 mail services".

20 "Air-to-Ground Radiotelephone service" means a

21 radio service, as that term is defined in 47 CFR 22.99,

22 in which common carriers are authorized to offer and

23 provide radio telecommunications service for hire to

24 subscribers in aircraft.

25 "Call-by-call Basis" means any method of charging

26 for telecommunications services where the price is

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1 measured by individual calls.

2 "Communications Channel" means a physical or

3 virtual path of communications over which signals are

4 transmitted between or among customer channel

5 termination points.

6 "Conference bridging service" means an "ancillary

7 service" that links two or more participants of an

8 audio or video conference call and may include the

9 provision of a telephone number. "Conference bridging

10 service" does not include the "telecommunications

11 services" used to reach the conference bridge.

12 "Customer Channel Termination Point" means the

13 location where the customer either inputs or receives

14 the communications.

15 "Detailed telecommunications billing service"

16 means an "ancillary service" of separately stating

17 information pertaining to individual calls on a

18 customer's billing statement.

19 "Directory assistance" means an "ancillary

20 service" of providing telephone number information,

21 and/or address information.

22 "Home service provider" means the facilities based

23 carrier or reseller with which the customer contracts

24 for the provision of mobile telecommunications

25 services.

26 "Mobile telecommunications service" means

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1 commercial mobile radio service, as defined in Section

2 20.3 of Title 47 of the Code of Federal Regulations as

3 in effect on June 1, 1999.

4 "Place of primary use" means the street address

5 representative of where the customer's use of the

6 telecommunications service primarily occurs, which

7 must be the residential street address or the primary

8 business street address of the customer. In the case of

9 mobile telecommunications services, "place of primary

10 use" must be within the licensed service area of the

11 home service provider.

12 "Post-paid telecommunication service" means the

13 telecommunications service obtained by making a

14 payment on a call-by-call basis either through the use

15 of a credit card or payment mechanism such as a bank

16 card, travel card, credit card, or debit card, or by

17 charge made to a telephone number which is not

18 associated with the origination or termination of the

19 telecommunications service. A post-paid calling

20 service includes telecommunications service, except a

21 prepaid wireless calling service, that would be a

22 prepaid calling service except it is not exclusively a

23 telecommunication service.

24 "Prepaid telecommunication service" means the

25 right to access exclusively telecommunications

26 services, which must be paid for in advance and which

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1 enables the origination of calls using an access number

2 or authorization code, whether manually or

3 electronically dialed, and that is sold in

4 predetermined units or dollars of which the number

5 declines with use in a known amount.

6 "Prepaid Mobile telecommunication service" means a

7 telecommunications service that provides the right to

8 utilize mobile wireless service as well as other

9 non-telecommunication services, including but not

10 limited to ancillary services, which must be paid for

11 in advance that is sold in predetermined units or

12 dollars of which the number declines with use in a

13 known amount.

14 "Private communication service" means a

15 telecommunication service that entitles the customer

16 to exclusive or priority use of a communications

17 channel or group of channels between or among

18 termination points, regardless of the manner in which

19 such channel or channels are connected, and includes

20 switching capacity, extension lines, stations, and any

21 other associated services that are provided in

22 connection with the use of such channel or channels.

23 "Service address" means:

24 (a) The location of the telecommunications

25 equipment to which a customer's call is charged and

26 from which the call originates or terminates,

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1 regardless of where the call is billed or paid;

2 (b) If the location in line (a) is not known,

3 service address means the origination point of the

4 signal of the telecommunications services first

5 identified by either the seller's

6 telecommunications system or in information

7 received by the seller from its service provider

8 where the system used to transport such signals is

9 not that of the seller; and

10 (c) If the locations in line (a) and line (b)

11 are not known, the service address means the

12 location of the customer's place of primary use.

13 "Telecommunications service" means the electronic

14 transmission, conveyance, or routing of voice, data,

15 audio, video, or any other information or signals to a

16 point, or between or among points. The term

17 "telecommunications service" includes such

18 transmission, conveyance, or routing in which computer

19 processing applications are used to act on the form,

20 code or protocol of the content for purposes of

21 transmission, conveyance or routing without regard to

22 whether such service is referred to as voice over

23 Internet protocol services or is classified by the

24 Federal Communications Commission as enhanced or value

25 added. "Telecommunications service" does not include:

26 (a) Data processing and information services

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1 that allow data to be generated, acquired, stored,

2 processed, or retrieved and delivered by an

3 electronic transmission to a purchaser when such

4 purchaser's primary purpose for the underlying

5 transaction is the processed data or information;

6 (b) Installation or maintenance of wiring or

7 equipment on a customer's premises;

8 (c) Tangible personal property;

9 (d) Advertising, including but not limited to

10 directory advertising; ~~.~~

11 (e) Billing and collection services provided

12 to third parties;

13 (f) Internet access service;

14 (g) Radio and television audio and video

15 programming services, regardless of the medium,

16 including the furnishing of transmission,

17 conveyance and routing of such services by the

18 programming service provider. Radio and television

19 audio and video programming services shall include

20 but not be limited to cable service as defined in

21 47 USC 522(6) and audio and video programming

22 services delivered by commercial mobile radio

23 service providers, as defined in 47 CFR 20.3;

24 (h) "Ancillary services"; or

25 (i) Digital products "delivered

26 electronically", including but not limited to

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1 software, music, video, reading materials or ring

2 tones.

3 "Vertical service" means an "ancillary service"

4 that is offered in connection with one or more

5 "telecommunications services", which offers advanced

6 calling features that allow customers to identify

7 callers and to manage multiple calls and call

8 connections, including "conference bridging services".

9 "Voice mail service" means an "ancillary service"

10 that enables the customer to store, send or receive

11 recorded messages. "Voice mail service" does not

12 include any "vertical services" that the customer may

13 be required to have in order to utilize the "voice mail

14 service".

15 (ii) Receipts from the sale of telecommunications

16 service sold on an individual call-by-call basis are in

17 this State if either of the following applies:

18 (a) The call both originates and terminates in

19 this State.

20 (b) The call either originates or terminates

21 in this State and the service address is located in

22 this State.

23 (iii) Receipts from the sale of postpaid

24 telecommunications service at retail are in this State

25 if the origination point of the telecommunication

26 signal, as first identified by the service provider's

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1 telecommunication system or as identified by

2 information received by the seller from its service

3 provider if the system used to transport

4 telecommunication signals is not the seller's, is

5 located in this State.

6 (iv) Receipts from the sale of prepaid

7 telecommunications service or prepaid mobile

8 telecommunications service at retail are in this State

9 if the purchaser obtains the prepaid card or similar

10 means of conveyance at a location in this State.

11 Receipts from recharging a prepaid telecommunications

12 service or mobile telecommunications service is in

13 this State if the purchaser's billing information

14 indicates a location in this State.

15 (v) Receipts from the sale of private

16 communication services are in this State as follows:

17 (a) 100% of receipts from charges imposed at

18 each channel termination point in this State.

19 (b) 100% of receipts from charges for the total

20 channel mileage between each channel termination

21 point in this State.

22 (c) 50% of the total receipts from charges for

23 service segments when those segments are between 2

24 customer channel termination points, 1 of which is

25 located in this State and the other is located

26 outside of this State, which segments are

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1 separately charged.

2 (d) The receipts from charges for service

3 segments with a channel termination point located

4 in this State and in two or more other states, and

5 which segments are not separately billed, are in

6 this State based on a percentage determined by

7 dividing the number of customer channel

8 termination points in this State by the total

9 number of customer channel termination points.

10 (vi) Receipts from charges for ancillary services

11 for telecommunications service sold to customers at

12 retail are in this State if the customer's primary

13 place of use of telecommunications services associated

14 with those ancillary services is in this State. If the

15 seller of those ancillary services cannot determine

16 where the associated telecommunications are located,

17 then the ancillary services shall be based on the

18 location of the purchaser.

19 (vii) Receipts to access a carrier's network or

20 from the sale of telecommunication services or

21 ancillary services for resale are in this State as

22 follows:

23 (a) 100% of the receipts from access fees

24 attributable to intrastate telecommunications

25 service that both originates and terminates in

26 this State.

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1 (b) 50% of the receipts from access fees

2 attributable to interstate telecommunications

3 service if the interstate call either originates

4 or terminates in this State.

5 (c) 100% of the receipts from interstate end

6 user access line charges, if the customer's

7 service address is in this State. As used in this

8 subdivision, "interstate end user access line

9 charges" includes, but is not limited to, the

10 surcharge approved by the federal communications

11 commission and levied pursuant to 47 CFR 69.

12 (d) Gross receipts from sales of

13 telecommunication services or from ancillary

14 services for telecommunications services sold to

15 other telecommunication service providers for

16 resale shall be sourced to this State using the

17 apportionment concepts used for non-resale

18 receipts of telecommunications services if the

19 information is readily available to make that

20 determination. If the information is not readily

21 available, then the taxpayer may use any other

22 reasonable and consistent method.

23 (B-7) For taxable years ending on or after December 31,

24 2008, receipts from the sale of broadcasting services are

25 in this State if the broadcasting services are received in

26 this State. For purposes of this paragraph (B-7), the

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1 following terms have the following meanings:

2 "Advertising revenue" means consideration received

3 by the taxpayer in exchange for broadcasting services

4 or allowing the broadcasting of commercials or

5 announcements in connection with the broadcasting of

6 film or radio programming, from sponsorships of the

7 programming, or from product placements in the

8 programming.

9 "Audience factor" means the ratio that the

10 audience or subscribers located in this State of a

11 station, a network, or a cable system bears to the

12 total audience or total subscribers for that station,

13 network, or cable system. The audience factor for film

14 or radio programming shall be determined by reference

15 to the books and records of the taxpayer or by

16 reference to published rating statistics provided the

17 method used by the taxpayer is consistently used from

18 year to year for this purpose and fairly represents the

19 taxpayer's activity in this State.

20 "Broadcast" or "broadcasting" or "broadcasting

21 services" means the transmission or provision of film

22 or radio programming, whether through the public

23 airwaves, by cable, by direct or indirect satellite

24 transmission, or by any other means of communication,

25 either through a station, a network, or a cable system.

26 "Film" or "film programming" means the broadcast

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1 on television of any and all performances, events, or

2 productions, including but not limited to news,

3 sporting events, plays, stories, or other literary,

4 commercial, educational, or artistic works, either

5 live or through the use of video tape, disc, or any

6 other type of format or medium. Each episode of a

7 series of films produced for television shall

8 constitute separate "film" notwithstanding that the

9 series relates to the same principal subject and is

10 produced during one or more tax periods.

11 "Radio" or "radio programming" means the broadcast

12 on radio of any and all performances, events, or

13 productions, including but not limited to news,

14 sporting events, plays, stories, or other literary,

15 commercial, educational, or artistic works, either

16 live or through the use of an audio tape, disc, or any

17 other format or medium. Each episode in a series of

18 radio programming produced for radio broadcast shall

19 constitute a separate "radio programming"

20 notwithstanding that the series relates to the same

21 principal subject and is produced during one or more

22 tax periods.

23 (i) In the case of advertising revenue from

24 broadcasting, the customer is the advertiser and

25 the service is received in this State if the

26 commercial domicile of the advertiser is in this

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1 State.

2 (ii) In the case where film or radio

3 programming is broadcast by a station, a network,

4 or a cable system for a fee or other remuneration

5 received from the recipient of the broadcast, the

6 portion of the service that is received in this

7 State is measured by the portion of the recipients

8 of the broadcast located in this State.

9 Accordingly, the fee or other remuneration for

10 such service that is included in the Illinois

11 numerator of the sales factor is the total of those

12 fees or other remuneration received from

13 recipients in Illinois. For purposes of this

14 paragraph, a taxpayer may determine the location

15 of the recipients of its broadcast using the

16 address of the recipient shown in its contracts

17 with the recipient or using the billing address of

18 the recipient in the taxpayer's records.

19 (iii) In the case where film or radio

20 programming is broadcast by a station, a network,

21 or a cable system for a fee or other remuneration

22 from the person providing the programming, the

23 portion of the broadcast service that is received

24 by such station, network, or cable system in this

25 State is measured by the portion of recipients of

26 the broadcast located in this State. Accordingly,

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1 the amount of revenue related to such an

2 arrangement that is included in the Illinois

3 numerator of the sales factor is the total fee or

4 other total remuneration from the person providing

5 the programming related to that broadcast

6 multiplied by the Illinois audience factor for

7 that broadcast.

8 (iv) In the case where film or radio

9 programming is provided by a taxpayer that is a

10 network or station to a customer for broadcast in

11 exchange for a fee or other remuneration from that

12 customer the broadcasting service is received at

13 the location of the office of the customer from

14 which the services were ordered in the regular

15 course of the customer's trade or business.

16 Accordingly, in such a case the revenue derived by

17 the taxpayer that is included in the taxpayer's

18 Illinois numerator of the sales factor is the

19 revenue from such customers who receive the

20 broadcasting service in Illinois.

21 (v) In the case where film or radio programming

22 is provided by a taxpayer that is not a network or

23 station to another person for broadcasting in

24 exchange for a fee or other remuneration from that

25 person, the broadcasting service is received at

26 the location of the office of the customer from

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1 which the services were ordered in the regular

2 course of the customer's trade or business.

3 Accordingly, in such a case the revenue derived by

4 the taxpayer that is included in the taxpayer's

5 Illinois numerator of the sales factor is the

6 revenue from such customers who receive the

7 broadcasting service in Illinois.

8 (B-8) Gross receipts from winnings under the Illinois

9 Lottery Law from the assignment of a prize under Section

10 13.1 of the Illinois Lottery Law are received in this

11 State. This paragraph (B-8) applies only to taxable years

12 ending on or after December 31, 2013.

13 (B-9) For taxable years ending on or after December 31,

14 2017, gross receipts from winnings from pari-mutuel

15 wagering conducted at a wagering facility licensed under

16 the Illinois Horse Racing Act of 1975 or from winnings from

17 gambling games conducted on a riverboat or in a casino or

18 electronic gaming facility licensed under the Illinois

19 Gambling Act are in this State.

20 (C) For taxable years ending before December 31, 2008,

21 sales, other than sales governed by paragraphs (B), (B-1),

22 (B-2), and (B-8) are in this State if:

23 (i) The income-producing activity is performed in

24 this State; or

25 (ii) The income-producing activity is performed

26 both within and without this State and a greater

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1 proportion of the income-producing activity is

2 performed within this State than without this State,

3 based on performance costs.

4 (C-5) For taxable years ending on or after December 31,

5 2008, sales, other than sales governed by paragraphs (B),

6 (B-1), (B-2), (B-5), and (B-7), are in this State if any of

7 the following criteria are met:

8 (i) Sales from the sale or lease of real property

9 are in this State if the property is located in this

10 State.

11 (ii) Sales from the lease or rental of tangible

12 personal property are in this State if the property is

13 located in this State during the rental period. Sales

14 from the lease or rental of tangible personal property

15 that is characteristically moving property, including,

16 but not limited to, motor vehicles, rolling stock,

17 aircraft, vessels, or mobile equipment are in this

18 State to the extent that the property is used in this

19 State.

20 (iii) In the case of interest, net gains (but not

21 less than zero) and other items of income from

22 intangible personal property, the sale is in this State

23 if:

24 (a) in the case of a taxpayer who is a dealer

25 in the item of intangible personal property within

26 the meaning of Section 475 of the Internal Revenue

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1 Code, the income or gain is received from a

2 customer in this State. For purposes of this

3 subparagraph, a customer is in this State if the

4 customer is an individual, trust or estate who is a

5 resident of this State and, for all other

6 customers, if the customer's commercial domicile

7 is in this State. Unless the dealer has actual

8 knowledge of the residence or commercial domicile

9 of a customer during a taxable year, the customer

10 shall be deemed to be a customer in this State if

11 the billing address of the customer, as shown in

12 the records of the dealer, is in this State; or

13 (b) in all other cases, if the

14 income-producing activity of the taxpayer is

15 performed in this State or, if the

16 income-producing activity of the taxpayer is

17 performed both within and without this State, if a

18 greater proportion of the income-producing

19 activity of the taxpayer is performed within this

20 State than in any other state, based on performance

21 costs.

22 (iv) Sales of services are in this State if the

23 services are received in this State. For the purposes

24 of this section, gross receipts from the performance of

25 services provided to a corporation, partnership, or

26 trust may only be attributed to a state where that

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1 corporation, partnership, or trust has a fixed place of

2 business. If the state where the services are received

3 is not readily determinable or is a state where the

4 corporation, partnership, or trust receiving the

5 service does not have a fixed place of business, the

6 services shall be deemed to be received at the location

7 of the office of the customer from which the services

8 were ordered in the regular course of the customer's

9 trade or business. If the ordering office cannot be

10 determined, the services shall be deemed to be received

11 at the office of the customer to which the services are

12 billed. If the taxpayer is not taxable in the state in

13 which the services are received, the sale must be

14 excluded from both the numerator and the denominator of

15 the sales factor. The Department shall adopt rules

16 prescribing where specific types of service are

17 received, including, but not limited to, publishing,

18 and utility service.

19 (D) For taxable years ending on or after December 31,

20 1995, the following items of income shall not be included

21 in the numerator or denominator of the sales factor:

22 dividends; amounts included under Section 78 of the

23 Internal Revenue Code; and Subpart F income as defined in

24 Section 952 of the Internal Revenue Code. No inference

25 shall be drawn from the enactment of this paragraph (D) in

26 construing this Section for taxable years ending before

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1 December 31, 1995.

2 (E) Paragraphs (B-1) and (B-2) shall apply to tax years

3 ending on or after December 31, 1999, provided that a

4 taxpayer may elect to apply the provisions of these

5 paragraphs to prior tax years. Such election shall be made

6 in the form and manner prescribed by the Department, shall

7 be irrevocable, and shall apply to all tax years; provided

8 that, if a taxpayer's Illinois income tax liability for any

9 tax year, as assessed under Section 903 prior to January 1,

10 1999, was computed in a manner contrary to the provisions

11 of paragraphs (B-1) or (B-2), no refund shall be payable to

12 the taxpayer for that tax year to the extent such refund is

13 the result of applying the provisions of paragraph (B-1) or

14 (B-2) retroactively. In the case of a unitary business

15 group, such election shall apply to all members of such

16 group for every tax year such group is in existence, but

17 shall not apply to any taxpayer for any period during which

18 that taxpayer is not a member of such group.

19 (b) Insurance companies.

20 (1) In general. Except as otherwise provided by

21 paragraph (2), business income of an insurance company for

22 a taxable year shall be apportioned to this State by

23 multiplying such income by a fraction, the numerator of

24 which is the direct premiums written for insurance upon

25 property or risk in this State, and the denominator of

26 which is the direct premiums written for insurance upon

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1 property or risk everywhere. For purposes of this

2 subsection, the term "direct premiums written" means the

3 total amount of direct premiums written, assessments and

4 annuity considerations as reported for the taxable year on

5 the annual statement filed by the company with the Illinois

6 Director of Insurance in the form approved by the National

7 Convention of Insurance Commissioners or such other form as

8 may be prescribed in lieu thereof.

9 (2) Reinsurance. If the principal source of premiums

10 written by an insurance company consists of premiums for

11 reinsurance accepted by it, the business income of such

12 company shall be apportioned to this State by multiplying

13 such income by a fraction, the numerator of which is the

14 sum of (i) direct premiums written for insurance upon

15 property or risk in this State, plus (ii) premiums written

16 for reinsurance accepted in respect of property or risk in

17 this State, and the denominator of which is the sum of

18 (iii) direct premiums written for insurance upon property

19 or risk everywhere, plus (iv) premiums written for

20 reinsurance accepted in respect of property or risk

21 everywhere. For purposes of this paragraph, premiums

22 written for reinsurance accepted in respect of property or

23 risk in this State, whether or not otherwise determinable,

24 may, at the election of the company, be determined on the

25 basis of the proportion which premiums written for

26 reinsurance accepted from companies commercially domiciled

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1 in Illinois bears to premiums written for reinsurance

2 accepted from all sources, or, alternatively, in the

3 proportion which the sum of the direct premiums written for

4 insurance upon property or risk in this State by each

5 ceding company from which reinsurance is accepted bears to

6 the sum of the total direct premiums written by each such

7 ceding company for the taxable year. The election made by a

8 company under this paragraph for its first taxable year

9 ending on or after December 31, 2011, shall be binding for

10 that company for that taxable year and for all subsequent

11 taxable years, and may be altered only with the written

12 permission of the Department, which shall not be

13 unreasonably withheld.

14 (c) Financial organizations.

15 (1) In general. For taxable years ending before

16 December 31, 2008, business income of a financial

17 organization shall be apportioned to this State by

18 multiplying such income by a fraction, the numerator of

19 which is its business income from sources within this

20 State, and the denominator of which is its business income

21 from all sources. For the purposes of this subsection, the

22 business income of a financial organization from sources

23 within this State is the sum of the amounts referred to in

24 subparagraphs (A) through (E) following, but excluding the

25 adjusted income of an international banking facility as

26 determined in paragraph (2):

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1 (A) Fees, commissions or other compensation for

2 financial services rendered within this State;

3 (B) Gross profits from trading in stocks, bonds or

4 other securities managed within this State;

5 (C) Dividends, and interest from Illinois

6 customers, which are received within this State;

7 (D) Interest charged to customers at places of

8 business maintained within this State for carrying

9 debit balances of margin accounts, without deduction

10 of any costs incurred in carrying such accounts; and

11 (E) Any other gross income resulting from the

12 operation as a financial organization within this

13 State. In computing the amounts referred to in

14 paragraphs (A) through (E) of this subsection, any

15 amount received by a member of an affiliated group

16 (determined under Section 1504(a) of the Internal

17 Revenue Code but without reference to whether any such

18 corporation is an "includible corporation" under

19 Section 1504(b) of the Internal Revenue Code) from

20 another member of such group shall be included only to

21 the extent such amount exceeds expenses of the

22 recipient directly related thereto.

23 (2) International Banking Facility. For taxable years

24 ending before December 31, 2008:

25 (A) Adjusted Income. The adjusted income of an

26 international banking facility is its income reduced

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1 by the amount of the floor amount.

2 (B) Floor Amount. The floor amount shall be the

3 amount, if any, determined by multiplying the income of

4 the international banking facility by a fraction, not

5 greater than one, which is determined as follows:

6 (i) The numerator shall be:

7 The average aggregate, determined on a

8 quarterly basis, of the financial organization's

9 loans to banks in foreign countries, to foreign

10 domiciled borrowers (except where secured

11 primarily by real estate) and to foreign

12 governments and other foreign official

13 institutions, as reported for its branches,

14 agencies and offices within the state on its

15 "Consolidated Report of Condition", Schedule A,

16 Lines 2.c., 5.b., and 7.a., which was filed with

17 the Federal Deposit Insurance Corporation and

18 other regulatory authorities, for the year 1980,

19 minus

20 The average aggregate, determined on a

21 quarterly basis, of such loans (other than loans of

22 an international banking facility), as reported by

23 the financial institution for its branches,

24 agencies and offices within the state, on the

25 corresponding Schedule and lines of the

26 Consolidated Report of Condition for the current

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1 taxable year, provided, however, that in no case

2 shall the amount determined in this clause (the

3 subtrahend) exceed the amount determined in the

4 preceding clause (the minuend); and

5 (ii) the denominator shall be the average

6 aggregate, determined on a quarterly basis, of the

7 international banking facility's loans to banks in

8 foreign countries, to foreign domiciled borrowers

9 (except where secured primarily by real estate)

10 and to foreign governments and other foreign

11 official institutions, which were recorded in its

12 financial accounts for the current taxable year.

13 (C) Change to Consolidated Report of Condition and

14 in Qualification. In the event the Consolidated Report

15 of Condition which is filed with the Federal Deposit

16 Insurance Corporation and other regulatory authorities

17 is altered so that the information required for

18 determining the floor amount is not found on Schedule

19 A, lines 2.c., 5.b. and 7.a., the financial institution

20 shall notify the Department and the Department may, by

21 regulations or otherwise, prescribe or authorize the

22 use of an alternative source for such information. The

23 financial institution shall also notify the Department

24 should its international banking facility fail to

25 qualify as such, in whole or in part, or should there

26 be any amendment or change to the Consolidated Report

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1 of Condition, as originally filed, to the extent such

2 amendment or change alters the information used in

3 determining the floor amount.

4 (3) For taxable years ending on or after December 31,

5 2008, the business income of a financial organization shall

6 be apportioned to this State by multiplying such income by

7 a fraction, the numerator of which is its gross receipts

8 from sources in this State or otherwise attributable to

9 this State's marketplace and the denominator of which is

10 its gross receipts everywhere during the taxable year.

11 "Gross receipts" for purposes of this subparagraph (3)

12 means gross income, including net taxable gain on

13 disposition of assets, including securities and money

14 market instruments, when derived from transactions and

15 activities in the regular course of the financial

16 organization's trade or business. The following examples

17 are illustrative:

18 (i) Receipts from the lease or rental of real or

19 tangible personal property are in this State if the

20 property is located in this State during the rental

21 period. Receipts from the lease or rental of tangible

22 personal property that is characteristically moving

23 property, including, but not limited to, motor

24 vehicles, rolling stock, aircraft, vessels, or mobile

25 equipment are from sources in this State to the extent

26 that the property is used in this State.

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1 (ii) Interest income, commissions, fees, gains on

2 disposition, and other receipts from assets in the

3 nature of loans that are secured primarily by real

4 estate or tangible personal property are from sources

5 in this State if the security is located in this State.

6 (iii) Interest income, commissions, fees, gains on

7 disposition, and other receipts from consumer loans

8 that are not secured by real or tangible personal

9 property are from sources in this State if the debtor

10 is a resident of this State.

11 (iv) Interest income, commissions, fees, gains on

12 disposition, and other receipts from commercial loans

13 and installment obligations that are not secured by

14 real or tangible personal property are from sources in

15 this State if the proceeds of the loan are to be

16 applied in this State. If it cannot be determined where

17 the funds are to be applied, the income and receipts

18 are from sources in this State if the office of the

19 borrower from which the loan was negotiated in the

20 regular course of business is located in this State. If

21 the location of this office cannot be determined, the

22 income and receipts shall be excluded from the

23 numerator and denominator of the sales factor.

24 (v) Interest income, fees, gains on disposition,

25 service charges, merchant discount income, and other

26 receipts from credit card receivables are from sources

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1 in this State if the card charges are regularly billed

2 to a customer in this State.

3 (vi) Receipts from the performance of services,

4 including, but not limited to, fiduciary, advisory,

5 and brokerage services, are in this State if the

6 services are received in this State within the meaning

7 of subparagraph (a)(3)(C-5)(iv) of this Section.

8 (vii) Receipts from the issuance of travelers

9 checks and money orders are from sources in this State

10 if the checks and money orders are issued from a

11 location within this State.

12 (viii) Receipts from investment assets and

13 activities and trading assets and activities are

14 included in the receipts factor as follows:

15 (1) Interest, dividends, net gains (but not

16 less than zero) and other income from investment

17 assets and activities from trading assets and

18 activities shall be included in the receipts

19 factor. Investment assets and activities and

20 trading assets and activities include but are not

21 limited to: investment securities; trading account

22 assets; federal funds; securities purchased and

23 sold under agreements to resell or repurchase;

24 options; futures contracts; forward contracts;

25 notional principal contracts such as swaps;

26 equities; and foreign currency transactions. With

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1 respect to the investment and trading assets and

2 activities described in subparagraphs (A) and (B)

3 of this paragraph, the receipts factor shall

4 include the amounts described in such

5 subparagraphs.

6 (A) The receipts factor shall include the

7 amount by which interest from federal funds

8 sold and securities purchased under resale

9 agreements exceeds interest expense on federal

10 funds purchased and securities sold under

11 repurchase agreements.

12 (B) The receipts factor shall include the

13 amount by which interest, dividends, gains and

14 other income from trading assets and

15 activities, including but not limited to

16 assets and activities in the matched book, in

17 the arbitrage book, and foreign currency

18 transactions, exceed amounts paid in lieu of

19 interest, amounts paid in lieu of dividends,

20 and losses from such assets and activities.

21 (2) The numerator of the receipts factor

22 includes interest, dividends, net gains (but not

23 less than zero), and other income from investment

24 assets and activities and from trading assets and

25 activities described in paragraph (1) of this

26 subsection that are attributable to this State.

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1 (A) The amount of interest, dividends, net

2 gains (but not less than zero), and other

3 income from investment assets and activities

4 in the investment account to be attributed to

5 this State and included in the numerator is

6 determined by multiplying all such income from

7 such assets and activities by a fraction, the

8 numerator of which is the gross income from

9 such assets and activities which are properly

10 assigned to a fixed place of business of the

11 taxpayer within this State and the denominator

12 of which is the gross income from all such

13 assets and activities.

14 (B) The amount of interest from federal

15 funds sold and purchased and from securities

16 purchased under resale agreements and

17 securities sold under repurchase agreements

18 attributable to this State and included in the

19 numerator is determined by multiplying the

20 amount described in subparagraph (A) of

21 paragraph (1) of this subsection from such

22 funds and such securities by a fraction, the

23 numerator of which is the gross income from

24 such funds and such securities which are

25 properly assigned to a fixed place of business

26 of the taxpayer within this State and the

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1 denominator of which is the gross income from

2 all such funds and such securities.

3 (C) The amount of interest, dividends,

4 gains, and other income from trading assets and

5 activities, including but not limited to

6 assets and activities in the matched book, in

7 the arbitrage book and foreign currency

8 transactions (but excluding amounts described

9 in subparagraphs (A) or (B) of this paragraph),

10 attributable to this State and included in the

11 numerator is determined by multiplying the

12 amount described in subparagraph (B) of

13 paragraph (1) of this subsection by a fraction,

14 the numerator of which is the gross income from

15 such trading assets and activities which are

16 properly assigned to a fixed place of business

17 of the taxpayer within this State and the

18 denominator of which is the gross income from

19 all such assets and activities.

20 (D) Properly assigned, for purposes of

21 this paragraph (2) of this subsection, means

22 the investment or trading asset or activity is

23 assigned to the fixed place of business with

24 which it has a preponderance of substantive

25 contacts. An investment or trading asset or

26 activity assigned by the taxpayer to a fixed

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1 place of business without the State shall be

2 presumed to have been properly assigned if:

3 (i) the taxpayer has assigned, in the

4 regular course of its business, such asset

5 or activity on its records to a fixed place

6 of business consistent with federal or

7 state regulatory requirements;

8 (ii) such assignment on its records is

9 based upon substantive contacts of the

10 asset or activity to such fixed place of

11 business; and

12 (iii) the taxpayer uses such records

13 reflecting assignment of such assets or

14 activities for the filing of all state and

15 local tax returns for which an assignment

16 of such assets or activities to a fixed

17 place of business is required.

18 (E) The presumption of proper assignment

19 of an investment or trading asset or activity

20 provided in subparagraph (D) of paragraph (2)

21 of this subsection may be rebutted upon a

22 showing by the Department, supported by a

23 preponderance of the evidence, that the

24 preponderance of substantive contacts

25 regarding such asset or activity did not occur

26 at the fixed place of business to which it was

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1 assigned on the taxpayer's records. If the

2 fixed place of business that has a

3 preponderance of substantive contacts cannot

4 be determined for an investment or trading

5 asset or activity to which the presumption in

6 subparagraph (D) of paragraph (2) of this

7 subsection does not apply or with respect to

8 which that presumption has been rebutted, that

9 asset or activity is properly assigned to the

10 state in which the taxpayer's commercial

11 domicile is located. For purposes of this

12 subparagraph (E), it shall be presumed,

13 subject to rebuttal, that taxpayer's

14 commercial domicile is in the state of the

15 United States or the District of Columbia to

16 which the greatest number of employees are

17 regularly connected with the management of the

18 investment or trading income or out of which

19 they are working, irrespective of where the

20 services of such employees are performed, as of

21 the last day of the taxable year.

22 (4) (Blank).

23 (5) (Blank).

24 (c-1) Federally regulated exchanges. For taxable years

25 ending on or after December 31, 2012, business income of a

26 federally regulated exchange shall, at the option of the

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1 federally regulated exchange, be apportioned to this State by

2 multiplying such income by a fraction, the numerator of which

3 is its business income from sources within this State, and the

4 denominator of which is its business income from all sources.

5 For purposes of this subsection, the business income within

6 this State of a federally regulated exchange is the sum of the

7 following:

8 (1) Receipts attributable to transactions executed on

9 a physical trading floor if that physical trading floor is

10 located in this State.

11 (2) Receipts attributable to all other matching,

12 execution, or clearing transactions, including without

13 limitation receipts from the provision of matching,

14 execution, or clearing services to another entity,

15 multiplied by (i) for taxable years ending on or after

16 December 31, 2012 but before December 31, 2013, 63.77%; and

17 (ii) for taxable years ending on or after December 31,

18 2013, 27.54%.

19 (3) All other receipts not governed by subparagraphs

20 (1) or (2) of this subsection (c-1), to the extent the

21 receipts would be characterized as "sales in this State"

22 under item (3) of subsection (a) of this Section.

23 "Federally regulated exchange" means (i) a "registered

24 entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),

25 or (C), (ii) an "exchange" or "clearing agency" within the

26 meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such

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1 entities regulated under any successor regulatory structure to

2 the foregoing, and (iv) all taxpayers who are members of the

3 same unitary business group as a federally regulated exchange,

4 determined without regard to the prohibition in Section

5 1501(a)(27) of this Act against including in a unitary business

6 group taxpayers who are ordinarily required to apportion

7 business income under different subsections of this Section;

8 provided that this subparagraph (iv) shall apply only if 50% or

9 more of the business receipts of the unitary business group

10 determined by application of this subparagraph (iv) for the

11 taxable year are attributable to the matching, execution, or

12 clearing of transactions conducted by an entity described in

13 subparagraph (i), (ii), or (iii) of this paragraph.

14 In no event shall the Illinois apportionment percentage

15 computed in accordance with this subsection (c-1) for any

16 taxpayer for any tax year be less than the Illinois

17 apportionment percentage computed under this subsection (c-1)

18 for that taxpayer for the first full tax year ending on or

19 after December 31, 2013 for which this subsection (c-1) applied

20 to the taxpayer.

21 (d) Transportation services. For taxable years ending

22 before December 31, 2008, business income derived from

23 furnishing transportation services shall be apportioned to

24 this State in accordance with paragraphs (1) and (2):

25 (1) Such business income (other than that derived from

26 transportation by pipeline) shall be apportioned to this

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1 State by multiplying such income by a fraction, the

2 numerator of which is the revenue miles of the person in

3 this State, and the denominator of which is the revenue

4 miles of the person everywhere. For purposes of this

5 paragraph, a revenue mile is the transportation of 1

6 passenger or 1 net ton of freight the distance of 1 mile

7 for a consideration. Where a person is engaged in the

8 transportation of both passengers and freight, the

9 fraction above referred to shall be determined by means of

10 an average of the passenger revenue mile fraction and the

11 freight revenue mile fraction, weighted to reflect the

12 person's

13 (A) relative railway operating income from total

14 passenger and total freight service, as reported to the

15 Interstate Commerce Commission, in the case of

16 transportation by railroad, and

17 (B) relative gross receipts from passenger and

18 freight transportation, in case of transportation

19 other than by railroad.

20 (2) Such business income derived from transportation

21 by pipeline shall be apportioned to this State by

22 multiplying such income by a fraction, the numerator of

23 which is the revenue miles of the person in this State, and

24 the denominator of which is the revenue miles of the person

25 everywhere. For the purposes of this paragraph, a revenue

26 mile is the transportation by pipeline of 1 barrel of oil,

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1 1,000 cubic feet of gas, or of any specified quantity of

2 any other substance, the distance of 1 mile for a

3 consideration.

4 (3) For taxable years ending on or after December 31,

5 2008, business income derived from providing

6 transportation services other than airline services shall

7 be apportioned to this State by using a fraction, (a) the

8 numerator of which shall be (i) all receipts from any

9 movement or shipment of people, goods, mail, oil, gas, or

10 any other substance (other than by airline) that both

11 originates and terminates in this State, plus (ii) that

12 portion of the person's gross receipts from movements or

13 shipments of people, goods, mail, oil, gas, or any other

14 substance (other than by airline) that originates in one

15 state or jurisdiction and terminates in another state or

16 jurisdiction, that is determined by the ratio that the

17 miles traveled in this State bears to total miles

18 everywhere and (b) the denominator of which shall be all

19 revenue derived from the movement or shipment of people,

20 goods, mail, oil, gas, or any other substance (other than

21 by airline). Where a taxpayer is engaged in the

22 transportation of both passengers and freight, the

23 fraction above referred to shall first be determined

24 separately for passenger miles and freight miles. Then an

25 average of the passenger miles fraction and the freight

26 miles fraction shall be weighted to reflect the taxpayer's:

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1 (A) relative railway operating income from total

2 passenger and total freight service, as reported to the

3 Surface Transportation Board, in the case of

4 transportation by railroad; and

5 (B) relative gross receipts from passenger and

6 freight transportation, in case of transportation

7 other than by railroad.

8 (4) For taxable years ending on or after December 31,

9 2008, business income derived from furnishing airline

10 transportation services shall be apportioned to this State

11 by multiplying such income by a fraction, the numerator of

12 which is the revenue miles of the person in this State, and

13 the denominator of which is the revenue miles of the person

14 everywhere. For purposes of this paragraph, a revenue mile

15 is the transportation of one passenger or one net ton of

16 freight the distance of one mile for a consideration. If a

17 person is engaged in the transportation of both passengers

18 and freight, the fraction above referred to shall be

19 determined by means of an average of the passenger revenue

20 mile fraction and the freight revenue mile fraction,

21 weighted to reflect the person's relative gross receipts

22 from passenger and freight airline transportation.

23 (e) Combined apportionment. Where 2 or more persons are

24 engaged in a unitary business as described in subsection

25 (a)(27) of Section 1501, a part of which is conducted in this

26 State by one or more members of the group, the business income

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1 attributable to this State by any such member or members shall

2 be apportioned by means of the combined apportionment method.

3 (f) Alternative allocation. If the allocation and

4 apportionment provisions of subsections (a) through (e) and of

5 subsection (h) do not, for taxable years ending before December

6 31, 2008, fairly represent the extent of a person's business

7 activity in this State, or, for taxable years ending on or

8 after December 31, 2008, fairly represent the market for the

9 person's goods, services, or other sources of business income,

10 the person may petition for, or the Director may, without a

11 petition, permit or require, in respect of all or any part of

12 the person's business activity, if reasonable:

13 (1) Separate accounting;

14 (2) The exclusion of any one or more factors;

15 (3) The inclusion of one or more additional factors

16 which will fairly represent the person's business

17 activities or market in this State; or

18 (4) The employment of any other method to effectuate an

19 equitable allocation and apportionment of the person's

20 business income.

21 (g) Cross reference. For allocation of business income by

22 residents, see Section 301(a).

23 (h) For tax years ending on or after December 31, 1998, the

24 apportionment factor of persons who apportion their business

25 income to this State under subsection (a) shall be equal to:

26 (1) for tax years ending on or after December 31, 1998

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1 and before December 31, 1999, 16 2/3% of the property

2 factor plus 16 2/3% of the payroll factor plus 66 2/3% of

3 the sales factor;

4 (2) for tax years ending on or after December 31, 1999

5 and before December 31, 2000, 8 1/3% of the property factor

6 plus 8 1/3% of the payroll factor plus 83 1/3% of the sales

7 factor;

8 (3) for tax years ending on or after December 31, 2000,

9 the sales factor.

10 If, in any tax year ending on or after December 31, 1998 and

11 before December 31, 2000, the denominator of the payroll,

12 property, or sales factor is zero, the apportionment factor

13 computed in paragraph (1) or (2) of this subsection for that

14 year shall be divided by an amount equal to 100% minus the

15 percentage weight given to each factor whose denominator is

16 equal to zero.

17 (Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,

18 eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)

19 (35 ILCS 5/710) (from Ch. 120, par. 7-710)

20 Sec. 710. Withholding from lottery winnings.

21 (a) In general.

22 (1) Any person making a payment to a resident or

23 nonresident of winnings under the Illinois Lottery Law and

24 not required to withhold Illinois income tax from such

25 payment under Subsection (b) of Section 701 of this Act

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1 because those winnings are not subject to Federal income

2 tax withholding, must withhold Illinois income tax from

3 such payment at a rate equal to the percentage tax rate for

4 individuals provided in subsection (b) of Section 201,

5 provided that withholding is not required if such payment

6 of winnings is less than $1,000.

7 (2) In the case of an assignment of a lottery prize

8 under Section 13.1 of the Illinois Lottery Law, any person

9 making a payment of the purchase price after December 31,

10 2013, shall withhold from the amount of each payment at a

11 rate equal to the percentage tax rate for individuals

12 provided in subsection (b) of Section 201.

13 (3) Any person making a payment after December 31, 2017

14 to a resident or nonresident of winnings from pari-mutuel

15 wagering conducted at a wagering facility licensed under

16 the Illinois Horse Racing Act of 1975 or from gambling

17 games conducted on a riverboat or in a casino or electronic

18 gaming facility licensed under the Illinois Gambling Act

19 must withhold Illinois income tax from such payment at a

20 rate equal to the percentage tax rate for individuals

21 provided in subsection (b) of Section 201, provided that

22 the person making the payment is required to withhold under

23 Section 3402(q) of the Internal Revenue Code.

24 (b) Credit for taxes withheld. Any amount withheld under

25 Subsection (a) shall be a credit against the Illinois income

26 tax liability of the person to whom the payment of winnings was

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1 made for the taxable year in which that person incurred an

2 Illinois income tax liability with respect to those winnings.

3 (Source: P.A. 98-496, eff. 1-1-14.)

4 Section 90-23. The Property Tax Code is amended by adding

5 Section 15-144 as follows:

6 (35 ILCS 200/15-144 new)

7 Sec. 15-144. Chicago Casino Development Authority. All

8 property owned by the Chicago Casino Development Authority is

9 exempt. Any property owned by the Chicago Casino Development

10 Authority and leased to any other entity is not exempt.

11 Section 90-24. The Illinois Municipal Code is amended by

12 adding Section 8-10-2.6 as follows:

13 (65 ILCS 5/8-10-2.6 new)

14 Sec. 8-10-2.6. Chicago Casino Development Authority.

15 Except as otherwise provided in the Chicago Casino Development

16 Authority Act, this Division 10 applies to purchase orders and

17 contracts relating to the Chicago Casino Development

18 Authority.

19 Section 90-25. The Joliet Regional Port District Act is

20 amended by changing Section 5.1 as follows:

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1 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)

2 Sec. 5.1. Riverboat and casino gambling. Notwithstanding

3 any other provision of this Act, the District may not regulate

4 the operation, conduct, or navigation of any riverboat gambling

5 casino licensed under the Illinois ~~Riverboat~~Gambling Act, and

6 the District may not license, tax, or otherwise levy any

7 assessment of any kind on any riverboat gambling casino

8 licensed under the Illinois ~~Riverboat~~Gambling Act. The General

9 Assembly declares that the powers to regulate the operation,

10 conduct, and navigation of riverboat gambling casinos and to

11 license, tax, and levy assessments upon riverboat gambling

12 casinos are exclusive powers of the State of Illinois and the

13 Illinois Gaming Board as provided in theIllinois ~~Riverboat~~

14 Gambling Act.

15 (Source: P.A. 87-1175.)

16 Section 90-30. The Consumer Installment Loan Act is amended

17 by changing Section 12.5 as follows:

18 (205 ILCS 670/12.5)

19 Sec. 12.5. Limited purpose branch.

20 (a) Upon the written approval of the Director, a licensee

21 may maintain a limited purpose branch for the sole purpose of

22 making loans as permitted by this Act. A limited purpose branch

23 may include an automatic loan machine. No other activity shall

24 be conducted at the site, including but not limited to,

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1 accepting payments, servicing the accounts, or collections.

2 (b) The licensee must submit an application for a limited

3 purpose branch to the Director on forms prescribed by the

4 Director with an application fee of $300. The approval for the

5 limited purpose branch must be renewed concurrently with the

6 renewal of the licensee's license along with a renewal fee of

7 $300 for the limited purpose branch.

8 (c) The books, accounts, records, and files of the limited

9 purpose branch's transactions shall be maintained at the

10 licensee's licensed location. The licensee shall notify the

11 Director of the licensed location at which the books, accounts,

12 records, and files shall be maintained.

13 (d) The licensee shall prominently display at the limited

14 purpose branch the address and telephone number of the

15 licensee's licensed location.

16 (e) No other business shall be conducted at the site of the

17 limited purpose branch unless authorized by the Director.

18 (f) The Director shall make and enforce reasonable rules

19 for the conduct of a limited purpose branch.

20 (g) A limited purpose branch may not be located within

21 1,000 feet of a facility operated by an inter-track wagering

22 licensee or an organization licensee subject to the Illinois

23 Horse Racing Act of 1975, on a riverboator in a casino subject

24 to theIllinois ~~Riverboat~~ Gambling Act, or within 1,000 feet of

25 the location at which the riverboat docksor within 1,000 feet

26 of a casino.

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1 (Source: P.A. 90-437, eff. 1-1-98.)

2 Section 90-35. The Illinois Horse Racing Act of 1975 is

3 amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,

4 20, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,

5 and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,

6 34.3, and 56 as follows:

7 (230 ILCS 5/1.2)

8 Sec. 1.2. Legislative intent. This Act is intended to

9 benefit the people of the State of Illinois byencouraging the

10 breeding and production of race horses,assisting economic

11 development and promoting Illinois tourism. The General

12 Assembly finds and declares it to be the public policy of the

13 State of Illinois to:

14 (a) support and enhance Illinois' horse racing industry,

15 which is a significant component within the agribusiness

16 industry;

17 (b) ensure that Illinois' horse racing industry remains

18 competitive with neighboring states;

19 (c) stimulate growth within Illinois' horse racing

20 industry, thereby encouraging new investment and development

21 to produce additional tax revenues and to create additional

22 jobs;

23 (d) promote the further growth of tourism;

24 (e) encourage the breeding of thoroughbred and

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1 standardbred horses in this State; and

2 (f) ensure that public confidence and trust in the

3 credibility and integrity of racing operations and the

4 regulatory process is maintained.

5 (Source: P.A. 91-40, eff. 6-25-99.)

6 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)

7 Sec. 3.11. "Organization Licensee" means any person

8 receiving an organization license from the Board to conduct a

9 race meeting or meetings. With respect only to electronic

10 gaming, "organization licensee" includes the authorization for

11 an electronic gaming license under subsection (a) of Section 56

12 of this Act.

13 (Source: P.A. 79-1185.)

14 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)

15 Sec. 3.12. Pari-mutuel system of wagering."Pari-mutuel

16 system of wagering" means a form of wagering on the outcome of

17 horse races in which wagers are made in various denominations

18 on a horse or horses and all wagers for each race are pooled

19 and held by a licensee for distribution in a manner approved by

20 the Board. "Pari-mutuel system of wagering" shall not include

21 wagering on historic races. Wagers may be placed via any method

22 or at any location authorized under this Act.

23 (Source: P.A. 96-762, eff. 8-25-09.)

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1 (230 ILCS 5/3.31 new)

2 Sec. 3.31. Adjusted gross receipts. "Adjusted gross

3 receipts" means the gross receipts less winnings paid to

4 wagerers.

5 (230 ILCS 5/3.32 new)

6 Sec. 3.32. Gross receipts. "Gross receipts" means the total

7 amount of money exchanged for the purchase of chips, tokens, or

8 electronic cards by riverboat or casino patrons or electronic

9 gaming patrons.

10 (230 ILCS 5/3.33 new)

11 Sec. 3.33. Electronic gaming. "Electronic gaming" means

12 slot machine gambling or gambling with table games positioned

13 within an electronic gaming facility as defined in the Illinois

14 Gambling Act or defined by the Illinois Gaming Board that is

15 conducted at a race track pursuant to an electronic gaming

16 license.

17 (230 ILCS 5/3.35 new)

18 Sec. 3.35. Electronic gaming license. "Electronic gaming

19 license" means a license issued by the Illinois Gaming Board

20 under Section 7.7 of the Illinois Gambling Act authorizing

21 electronic gaming at an electronic gaming facility.

22 (230 ILCS 5/3.36 new)

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1 Sec. 3.36. Electronic gaming facility. "Electronic gaming

2 facility" means that portion of an organization licensee's race

3 track facility at which electronic gaming is conducted.

4 (230 ILCS 5/6) (from Ch. 8, par. 37-6)

5 Sec. 6. Restrictions on Board members.

6 (a) No person shall be appointed a member of the Board or

7 continue to be a member of the Board if the person or any

8 member of their immediate family is a member of the Board of

9 Directors, employee, or financially interested in any of the

10 following: (i) any licensee or other person who has applied for

11 racing dates to the Board, or the operations thereof including,

12 but not limited to, concessions, data processing, track

13 maintenance, track security, and pari-mutuel operations,

14 located, scheduled or doing business within the State of

15 Illinois, (ii) any race horse competing at a meeting under the

16 Board's jurisdiction, or (iii) any licensee under the Illinois

17 Gambling Act. ~~No person shall be appointed a member of the~~

18 ~~Board or continue to be a member of the Board who is (or any~~

19 ~~member of whose family is) a member of the Board of Directors~~

20 ~~of, or who is a person financially interested in, any licensee~~

21 ~~or other person who has applied for racing dates to the Board,~~

22 ~~or the operations thereof including, but not limited to,~~

23 ~~concessions, data processing, track maintenance, track~~

24 ~~security and pari-mutuel operations, located, scheduled or~~

25 ~~doing business within the State of Illinois, or in any race~~

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1 ~~horse competing at a meeting under the Board's jurisdiction. No~~

2 ~~Board member shall hold any other public office for which he~~

3 ~~shall receive compensation other than necessary travel or other~~

4 ~~incidental expenses.~~

5 (b) No person shall be a member of the Board who is not of

6 good moral character or who has been convicted of, or is under

7 indictment for, a felony under the laws of Illinois or any

8 other state, or the United States.

9 (c) No member of the Board or employee shall engage in any

10 political activity.

11 For the purposes of this subsection (c):

12 "Political" means any activity in support of or in

13 connection with any campaign for State or local elective office

14 or any political organization, but does not include activities

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

16 legislative, or administrative action (as those terms are

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

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

19 in furtherance of the person's official State duties or

20 governmental and public service functions.

21 "Political organization" means a party, committee,

22 association, fund, or other organization (whether or not

23 incorporated) that is required to file a statement of

24 organization with the State Board of Elections or county clerk

25 under Section 9-3 of the Election Code, but only with regard to

26 those activities that require filing with the State Board of

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1 Elections or county clerk.

2 (d) Board members and employees may not engage in

3 communications or any activity that may cause or have the

4 appearance of causing a conflict of interest. A conflict of

5 interest exists if a situation influences or creates the

6 appearance that it may influence judgment or performance of

7 regulatory duties and responsibilities. This prohibition shall

8 extend to any act identified by Board action that, in the

9 judgment of the Board, could represent the potential for or the

10 appearance of a conflict of interest.

11 (e) Board members and employees may not accept any gift,

12 gratuity, service, compensation, travel, lodging, or thing of

13 value, with the exception of unsolicited items of an incidental

14 nature, from any person, corporation, limited liability

15 company, or entity doing business with the Board.

16 (f) A Board member or employee shall not use or attempt to

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

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

19 himself or herself or others. No Board member or employee,

20 within a period of one year immediately preceding nomination by

21 the Governor or employment, shall have been employed or

22 received compensation or fees for services from a person or

23 entity, or its parent or affiliate, that has engaged in

24 business with the Board, a licensee or a licensee under the

25 Illinois Gambling Act. In addition, all Board members and

26 employees are subject to the restrictions set forth in Section

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1 5-45 of the State Officials and Employees Ethics Act.

2 (Source: P.A. 89-16, eff. 5-30-95.)

3 (230 ILCS 5/9) (from Ch. 8, par. 37-9)

4 Sec. 9. The Board shall have all powers necessary and

5 proper to fully and effectively execute the provisions of this

6 Act, including, but not limited to, the following:

7 (a) The Board is vested with jurisdiction and supervision

8 over all race meetings in this State, over all licensees doing

9 business in this State, over all occupation licensees, and over

10 all persons on the facilities of any licensee. Such

11 jurisdiction shall include the power to issue licenses to the

12 Illinois Department of Agriculture authorizing the pari-mutuel

13 system of wagering on harness and Quarter Horse races held (1)

14 at the Illinois State Fair in Sangamon County, and (2) at the

15 DuQuoin State Fair in Perry County. The jurisdiction of the

16 Board shall also include the power to issue licenses to county

17 fairs which are eligible to receive funds pursuant to the

18 Agricultural Fair Act, as now or hereafter amended, or their

19 agents, authorizing the pari-mutuel system of wagering on horse

20 races conducted at the county fairs receiving such licenses.

21 Such licenses shall be governed by subsection (n) of this

22 Section.

23 Upon application, the Board shall issue a license to the

24 Illinois Department of Agriculture to conduct harness and

25 Quarter Horse races at the Illinois State Fair and at the

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1 DuQuoin State Fairgrounds during the scheduled dates of each

2 fair. The Board shall not require and the Department of

3 Agriculture shall be exempt from the requirements of Sections

4 15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),

5 (e-10), (f), (g), and (h) of Section 20, and Sections 21, 24

6 and 25. The Board and the Department of Agriculture may extend

7 any or all of these exemptions to any contractor or agent

8 engaged by the Department of Agriculture to conduct its race

9 meetings when the Board determines that this would best serve

10 the public interest and the interest of horse racing.

11 Notwithstanding any provision of law to the contrary, it

12 shall be lawful for any licensee to operate pari-mutuel

13 wagering or contract with the Department of Agriculture to

14 operate pari-mutuel wagering at the DuQuoin State Fairgrounds

15 or for the Department to enter into contracts with a licensee,

16 employ its owners, employees or agents and employ such other

17 occupation licensees as the Department deems necessary in

18 connection with race meetings and wagerings.

19 (b) The Board is vested with the full power to promulgate

20 reasonable rules and regulations for the purpose of

21 administering the provisions of this Act and to prescribe

22 reasonable rules, regulations and conditions under which all

23 horse race meetings or wagering in the State shall be

24 conducted. Such reasonable rules and regulations are to provide

25 for the prevention of practices detrimental to the public

26 interest and to promote the best interests of horse racing and

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1 to impose penalties for violations thereof.

2 (c) The Board, and any person or persons to whom it

3 delegates this power, is vested with the power to enter the

4 facilities and other places of business of any licensee to

5 determine whether there has been compliance with the provisions

6 of this Act and its rules and regulations.

7 (d) The Board, and any person or persons to whom it

8 delegates this power, is vested with the authority to

9 investigate alleged violations of the provisions of this Act,

10 its reasonable rules and regulations, orders and final

11 decisions; the Board shall take appropriate disciplinary

12 action against any licensee or occupation licensee for

13 violation thereof or institute appropriate legal action for the

14 enforcement thereof.

15 (e) The Board, and any person or persons to whom it

16 delegates this power, may eject or exclude from any race

17 meeting or the facilities of any licensee, or any part thereof,

18 any occupation licensee or any other individual whose conduct

19 or reputation is such that his presence on those facilities

20 may, in the opinion of the Board, call into question the

21 honesty and integrity of horse racing or wagering or interfere

22 with the orderly conduct of horse racing or wagering; provided,

23 however, that no person shall be excluded or ejected from the

24 facilities of any licensee solely on the grounds of race,

25 color, creed, national origin, ancestry, or sex. The power to

26 eject or exclude an occupation licensee or other individual may

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1 be exercised for just cause by the licensee or the Board,

2 subject to subsequent hearing by the Board as to the propriety

3 of said exclusion.

4 (f) The Board is vested with the power to acquire,

5 establish, maintain and operate (or provide by contract to

6 maintain and operate) testing laboratories and related

7 facilities, for the purpose of conducting saliva, blood, urine

8 and other tests on the horses run or to be run in any horse race

9 meeting, including races run at county fairs, and to purchase

10 all equipment and supplies deemed necessary or desirable in

11 connection with any such testing laboratories and related

12 facilities and all such tests.

13 (g) The Board may require that the records, including

14 financial or other statements of any licensee or any person

15 affiliated with the licensee who is involved directly or

16 indirectly in the activities of any licensee as regulated under

17 this Act to the extent that those financial or other statements

18 relate to such activities be kept in such manner as prescribed

19 by the Board, and that Board employees shall have access to

20 those records during reasonable business hours. Within 120 days

21 of the end of its fiscal year, each licensee shall transmit to

22 the Board an audit of the financial transactions and condition

23 of the licensee's total operations. All audits shall be

24 conducted by certified public accountants. Each certified

25 public accountant must be registered in the State of Illinois

26 under the Illinois Public Accounting Act. The compensation for

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1 each certified public accountant shall be paid directly by the

2 licensee to the certified public accountant. A licensee shall

3 also submit any other financial or related information the

4 Board deems necessary to effectively administer this Act and

5 all rules, regulations, and final decisions promulgated under

6 this Act.

7 (h) The Board shall name and appoint in the manner provided

8 by the rules and regulations of the Board: an Executive

9 Director; a State director of mutuels; State veterinarians and

10 representatives to take saliva, blood, urine and other tests on

11 horses; licensing personnel; revenue inspectors; and State

12 seasonal employees (excluding admission ticket sellers and

13 mutuel clerks). All of those named and appointed as provided in

14 this subsection shall serve during the pleasure of the Board;

15 their compensation shall be determined by the Board and be paid

16 in the same manner as other employees of the Board under this

17 Act.

18 (i) The Board shall require that there shall be 3 stewards

19 at each horse race meeting, at least 2 of whom shall be named

20 and appointed by the Board. Stewards appointed or approved by

21 the Board, while performing duties required by this Act or by

22 the Board, shall be entitled to the same rights and immunities

23 as granted to Board members and Board employees in Section 10

24 of this Act.

25 (j) The Board may discharge any Board employee who fails or

26 refuses for any reason to comply with the rules and regulations

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1 of the Board, or who, in the opinion of the Board, is guilty of

2 fraud, dishonesty or who is proven to be incompetent. The Board

3 shall have no right or power to determine who shall be

4 officers, directors or employees of any licensee, or their

5 salaries except the Board may, by rule, require that all or any

6 officials or employees in charge of or whose duties relate to

7 the actual running of races be approved by the Board.

8 (k) The Board is vested with the power to appoint delegates

9 to execute any of the powers granted to it under this Section

10 for the purpose of administering this Act and any rules or

11 regulations promulgated in accordance with this Act.

12 (l) The Board is vested with the power to impose civil

13 penalties of up to $5,000 against an individual and up to

14 $10,000 against a licensee for each violation of any provision

15 of this Act, any rules adopted by the Board, any order of the

16 Board or any other action which, in the Board's discretion, is

17 a detriment or impediment to horse racing or wagering.

18 Beginning on the date when any organization licensee begins

19 conducting electronic gaming pursuant to an electronic gaming

20 license issued under the Illinois Gambling Act, the power

21 granted to the Board pursuant to this subsection (l) shall

22 authorize the Board to impose penalties of up to $10,000

23 against an individual and up to $25,000 against a licensee. All

24 such civil penalties shall be deposited into the Horse Racing

25 Fund.

26 (m) The Board is vested with the power to prescribe a form

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1 to be used by licensees as an application for employment for

2 employees of each licensee.

3 (n) The Board shall have the power to issue a license to

4 any county fair, or its agent, authorizing the conduct of the

5 pari-mutuel system of wagering. The Board is vested with the

6 full power to promulgate reasonable rules, regulations and

7 conditions under which all horse race meetings licensed

8 pursuant to this subsection shall be held and conducted,

9 including rules, regulations and conditions for the conduct of

10 the pari-mutuel system of wagering. The rules, regulations and

11 conditions shall provide for the prevention of practices

12 detrimental to the public interest and for the best interests

13 of horse racing, and shall prescribe penalties for violations

14 thereof. Any authority granted the Board under this Act shall

15 extend to its jurisdiction and supervision over county fairs,

16 or their agents, licensed pursuant to this subsection. However,

17 the Board may waive any provision of this Act or its rules or

18 regulations which would otherwise apply to such county fairs or

19 their agents.

20 (o) Whenever the Board is authorized or required by law to

21 consider some aspect of criminal history record information for

22 the purpose of carrying out its statutory powers and

23 responsibilities, then, upon request and payment of fees in

24 conformance with the requirements of Section 2605-400 of the

25 Department of State Police Law (20 ILCS 2605/2605-400), the

26 Department of State Police is authorized to furnish, pursuant

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1 to positive identification, such information contained in

2 State files as is necessary to fulfill the request.

3 (p) To insure the convenience, comfort, and wagering

4 accessibility of race track patrons, to provide for the

5 maximization of State revenue, and to generate increases in

6 purse allotments to the horsemen, the Board shall require any

7 licensee to staff the pari-mutuel department with adequate

8 personnel.

9 (Source: P.A. 97-1060, eff. 8-24-12.)

10 (230 ILCS 5/15) (from Ch. 8, par. 37-15)

11 Sec. 15. (a) The Board shall, in its discretion, issue

12 occupation licenses to horse owners, trainers, harness

13 drivers, jockeys, agents, apprentices, grooms, stable foremen,

14 exercise persons, veterinarians, valets, blacksmiths,

15 concessionaires and others designated by the Board whose work,

16 in whole or in part, is conducted upon facilities within the

17 State. Such occupation licenses will be obtained prior to the

18 persons engaging in their vocation upon such facilities. The

19 Board shall not license pari-mutuel clerks, parking

20 attendants, security guards and employees of concessionaires.

21 No occupation license shall be required of any person who works

22 at facilities within this State as a pari-mutuel clerk, parking

23 attendant, security guard or as an employee of a

24 concessionaire. Concessionaires of the Illinois State Fair and

25 DuQuoin State Fair and employees of the Illinois Department of

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1 Agriculture shall not be required to obtain an occupation

2 license by the Board.

3 (b) Each application for an occupation license shall be on

4 forms prescribed by the Board. Such license, when issued, shall

5 be for the period ending December 31 of each year, except that

6 the Board in its discretion may grant 3-year licenses. The

7 application shall be accompanied by a fee of not more than $25

8 per year or, in the case of 3-year occupation license

9 applications, a fee of not more than $60. Each applicant shall

10 set forth in the application his full name and address, and if

11 he had been issued prior occupation licenses or has been

12 licensed in any other state under any other name, such name,

13 his age, whether or not a permit or license issued to him in

14 any other state has been suspended or revoked and if so whether

15 such suspension or revocation is in effect at the time of the

16 application, and such other information as the Board may

17 require. Fees for registration of stable names shall not exceed

18 $50.00. Beginning on the date when any organization licensee

19 begins conducting electronic gaming pursuant to an electronic

20 gaming license issued under the Illinois Gambling Act, the fee

21 for registration of stable names shall not exceed $150, and the

22 application fee for an occupation license shall not exceed $75,

23 per year or, in the case of a 3-year occupation license

24 application, the fee shall not exceed $180.

25 (c) The Board may in its discretion refuse an occupation

26 license to any person:

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1 (1) who has been convicted of a crime;

2 (2) who is unqualified to perform the duties required

3 of such applicant;

4 (3) who fails to disclose or states falsely any

5 information called for in the application;

6 (4) who has been found guilty of a violation of this

7 Act or of the rules and regulations of the Board; or

8 (5) whose license or permit has been suspended, revoked

9 or denied for just cause in any other state.

10 (d) The Board may suspend or revoke any occupation license:

11 (1) for violation of any of the provisions of this Act;

12 or

13 (2) for violation of any of the rules or regulations of

14 the Board; or

15 (3) for any cause which, if known to the Board, would

16 have justified the Board in refusing to issue such

17 occupation license; or

18 (4) for any other just cause.

19 (e) Each applicant shall submit his or her fingerprints

20 to the Department of State Police in the form and manner

21 prescribed by the Department of State Police. These

22 fingerprints shall be checked against the fingerprint records

23 now and hereafter filed in the Department of State Police and

24 Federal Bureau of Investigation criminal history records

25 databases. The Department of State Police shall charge a fee

26 for conducting the criminal history records check, which shall

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1 be deposited in the State Police Services Fund and shall not

2 exceed the actual cost of the records check. The Department of

3 State Police shall furnish, pursuant to positive

4 identification, records of conviction to the Board. Each

5 applicant for licensure shall submit with his occupation

6 license application, on forms provided by the Board, 2 sets of

7 his fingerprints. All such applicants shall appear in person at

8 the location designated by the Board for the purpose of

9 submitting such sets of fingerprints; however, with the prior

10 approval of a State steward, an applicant may have such sets of

11 fingerprints taken by an official law enforcement agency and

12 submitted to the Board.

13 (f) The Board may, in its discretion, issue an occupation

14 license without submission of fingerprints if an applicant has

15 been duly licensed in another recognized racing jurisdiction

16 after submitting fingerprints that were subjected to a Federal

17 Bureau of Investigation criminal history background check in

18 that jurisdiction.

19 (g) Beginning on the date when any organization licensee

20 begins conducting electronic gaming pursuant to an electronic

21 gaming license issued under the Illinois Gambling Act, the

22 Board may charge each applicant a reasonable non-refundable fee

23 to defray the costs associated with the background

24 investigation conducted by the Board. This fee shall be

25 exclusive of any other fee or fees charged in connection with

26 an application for and, if applicable, the issuance of, an

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1 electronic gaming license. If the costs of the investigation

2 exceed the amount of the fee charged, the Board shall

3 immediately notify the applicant of the additional amount owed,

4 payment of which must be submitted to the Board within 7 days

5 after such notification. All information, records, interviews,

6 reports, statements, memoranda, or other data supplied to or

7 used by the Board in the course of its review or investigation

8 of an applicant for a license or renewal under this Act shall

9 be privileged, strictly confidential, and shall be used only

10 for the purpose of evaluating an applicant for a license or a

11 renewal. Such information, records, interviews, reports,

12 statements, memoranda, or other data shall not be admissible as

13 evidence, nor discoverable, in any action of any kind in any

14 court or before any tribunal, board, agency, or person, except

15 for any action deemed necessary by the Board.

16 (Source: P.A. 93-418, eff. 1-1-04.)

17 (230 ILCS 5/18) (from Ch. 8, par. 37-18)

18 Sec. 18. (a) Together with its application, each applicant

19 for racing dates shall deliver to the Board a certified check

20 or bank draft payable to the order of the Board for $1,000. In

21 the event the applicant applies for racing dates in 2 or 3

22 successive calendar years as provided in subsection (b) of

23 Section 21, the fee shall be $2,000. Filing fees shall not be

24 refunded in the event the application is denied.Beginning on

25 the date when any organization licensee begins conducting

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1 electronic gaming pursuant to an electronic gaming license

2 issued under the Illinois Gambling Act, the application fee for

3 racing dates imposed by this subsection (a) shall be $10,000

4 and the application fee for racing dates in 2 or 3 successive

5 calendar years as provided in subsection (b) of Section 21

6 shall be $20,000. All filing fees shall be deposited into the

7 Horse Racing Fund.

8 (b) In addition to the filing fee imposed by subsection (a)

9 ~~of $1000~~and the fees provided in subsection (j) of Section 20,

10 each organization licensee shall pay a license fee of $100 for

11 each racing program on which its daily pari-mutuel handle is

12 $400,000 or more but less than $700,000, and a license fee of

13 $200 for each racing program on which its daily pari-mutuel

14 handle is $700,000 or more. The additional fees required to be

15 paid under this Section by this amendatory Act of 1982 shall be

16 remitted by the organization licensee to the Illinois Racing

17 Board with each day's graduated privilege tax or pari-mutuel

18 tax and breakage as provided under Section 27.Beginning on the

19 date when any organization licensee begins conducting

20 electronic gaming pursuant to an electronic gaming license

21 issued under the Illinois Gambling Act, the license fee imposed

22 by this subsection (b) shall be $200 for each racing program on

23 which the organization licensee's daily pari-mutuel handle is

24 $100,000 or more, but less than $400,000, and the license fee

25 imposed by this subsection (b) shall be $400 for each racing

26 program on which the organization licensee's daily pari-mutuel

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1 handle is $400,000 or more.

2 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois

3 Municipal Code," approved May 29, 1961, as now or hereafter

4 amended, shall not apply to any license under this Act.

5 (Source: P.A. 97-1060, eff. 8-24-12.)

6 (230 ILCS 5/19) (from Ch. 8, par. 37-19)

7 Sec. 19. (a) No organization license may be granted to

8 conduct a horse race meeting:

9 (1) except as provided in subsection (c) of Section 21

10 of this Act, to any person at any place within 35 miles of

11 any other place licensed by the Board to hold a race

12 meeting on the same date during the same hours, the mileage

13 measurement used in this subsection (a) shall be certified

14 to the Board by the Bureau of Systems and Services in the

15 Illinois Department of Transportation as the most commonly

16 used public way of vehicular travel;

17 (2) to any person in default in the payment of any

18 obligation or debt due the State under this Act, provided

19 no applicant shall be deemed in default in the payment of

20 any obligation or debt due to the State under this Act as

21 long as there is pending a hearing of any kind relevant to

22 such matter;

23 (3) to any person who has been convicted of the

24 violation of any law of the United States or any State law

25 which provided as all or part of its penalty imprisonment

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1 in any penal institution; to any person against whom there

2 is pending a Federal or State criminal charge; to any

3 person who is or has been connected with or engaged in the

4 operation of any illegal business; to any person who does

5 not enjoy a general reputation in his community of being an

6 honest, upright, law-abiding person; provided that none of

7 the matters set forth in this subparagraph (3) shall make

8 any person ineligible to be granted an organization license

9 if the Board determines, based on circumstances of any such

10 case, that the granting of a license would not be

11 detrimental to the interests of horse racing and of the

12 public;

13 (4) to any person who does not at the time of

14 application for the organization license own or have a

15 contract or lease for the possession of a finished race

16 track suitable for the type of racing intended to be held

17 by the applicant and for the accommodation of the public.

18 (b) (Blank) ~~Horse racing on Sunday shall be prohibited~~

19 ~~unless authorized by ordinance or referendum of the~~

20 ~~municipality in which a race track or any of its appurtenances~~

21 ~~or facilities are located, or utilized~~.

22 (c) If any person is ineligible to receive an organization

23 license because of any of the matters set forth in subsection

24 (a) (2) or subsection (a) (3) of this Section, any other or

25 separate person that either (i) controls, directly or

26 indirectly, such ineligible person or (ii) is controlled,

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1 directly or indirectly, by such ineligible person or by a

2 person which controls, directly or indirectly, such ineligible

3 person shall also be ineligible.

4 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)

5 (230 ILCS 5/20) (from Ch. 8, par. 37-20)

6 Sec. 20. (a) Any person desiring to conduct a horse race

7 meeting may apply to the Board for an organization license. The

8 application shall be made on a form prescribed and furnished by

9 the Board. The application shall specify:

10 (1) the dates on which it intends to conduct the horse

11 race meeting, which dates shall be provided under Section

12 21;

13 (2) the hours of each racing day between which it

14 intends to hold or conduct horse racing at such meeting;

15 (3) the location where it proposes to conduct the

16 meeting; and

17 (4) any other information the Board may reasonably

18 require.

19 (b) A separate application for an organization license

20 shall be filed for each horse race meeting which such person

21 proposes to hold. Any such application, if made by an

22 individual, or by any individual as trustee, shall be signed

23 and verified under oath by such individual. If the application

24 ismade by individuals, then it shall be signed and verified

25 under oath by at least 2 of the individuals; if the application

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1 is made by ~~or~~ a partnership, ~~it shall be signed and verified~~

2 ~~under oath by at least 2 of such individuals or members of such~~

3 ~~partnership as the case may be. If made by~~ an association, a

4 corporation, acorporate trustee, a limited liability company,

5 or any other entity, it shall be signed by an authorized

6 officer, a partner, a member, or a manager, as the case may be,

7 of the entity ~~the president and attested by the secretary or~~

8 ~~assistant secretary under the seal of such association, trust~~

9 ~~or corporation if it has a seal, and shall also be verified~~

10 ~~under oath by one of the signing officers~~.

11 (c) The application shall specify:

12 (1)the name of the persons, association, trust, or

13 corporation making such application; ~~and~~

14 (2) the principal~~post office~~ address of the applicant;

15 (3)if the applicant is a trustee, the names and

16 addresses of the beneficiaries; if the applicant is a

17 corporation, the names and~~post office~~ addresses of all

18 officers, stockholders and directors; or if such

19 stockholders hold stock as a nominee or fiduciary, the

20 names and ~~post office~~ addresses of the parties ~~these~~

21 ~~persons, partnerships, corporations, or trusts~~who are the

22 beneficial owners thereof or who are beneficially

23 interested therein;~~and~~ if the applicant is a partnership,

24 the names and ~~post office~~addresses of all partners,

25 general or limited; if the applicant is a limited liability

26 company, the names and addresses of the manager and

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1 members; and if the applicant is any other entity, the

2 names and addresses of all officers or other authorized

3 persons of the entity ~~corporation, the name of the state of~~

4 ~~its incorporation shall be specified~~.

5 (d) The applicant shall execute and file with the Board a

6 good faith affirmative action plan to recruit, train, and

7 upgrade minorities in all classifications within the

8 association.

9 (e) With such application there shall be delivered to the

10 Board a certified check or bank draft payable to the order of

11 the Board for an amount equal to $1,000. All applications for

12 the issuance of an organization license shall be filed with the

13 Board before August 1 of the year prior to the year for which

14 application is made and shall be acted upon by the Board at a

15 meeting to be held on such date as shall be fixed by the Board

16 during the last 15 days of September of such prior year. At

17 such meeting, the Board shall announce the award of the racing

18 meets, live racing schedule, and designation of host track to

19 the applicants and its approval or disapproval of each

20 application. No announcement shall be considered binding until

21 a formal order is executed by the Board, which shall be

22 executed no later than October 15 of that prior year. Absent

23 the agreement of the affected organization licensees, the Board

24 shall not grant overlapping race meetings to 2 or more tracks

25 that are within 100 miles of each other to conduct the

26 thoroughbred racing.

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1 (e-1) In awarding standardbred racing dates for calendar

2 year 2018 and thereafter, the Board shall award at least 310

3 racing days, and each organization licensee shall average at

4 least 12 races for each racing day awarded. The Board shall

5 have the discretion to allocate those racing days among

6 organization licensees requesting standardbred racing dates.

7 Once awarded by the Board, organization licensees awarded

8 standardbred racing dates shall run at least 3,500 races in

9 total during that calendar year. Standardbred racing conducted

10 in Sangamon County shall not be considered races under this

11 subsection (e-1).

12 (e-2) In awarding racing dates for calendar year 2018 and

13 thereafter, the Board shall award thoroughbred racing days to

14 Cook County organization licensees commensurate with these

15 organization licensees' requirement that they shall run at

16 least 1,950 thoroughbred races in the aggregate, so long as 2

17 organization licensees are conducting electronic gaming

18 operations. Additionally, if the organization licensees that

19 run thoroughbred races in Cook County are conducting electronic

20 gaming operations, the Board shall increase the number of

21 thoroughbred races to be run in Cook County in the aggregate to

22 at least the following:

23 (i) 2,050 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

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1 $200,000,000, but do not exceed $250,000,000;

2 (ii) 2,125 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 $250,000,000, but do not exceed $300,000,000;

7 (iii) 2,200 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 $300,000,000, but do not exceed $350,000,000;

12 (iv) 2,300 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 $350,000,000, but do not exceed $400,000,000;

17 (v) 2,375 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 total in excess of

21 $400,000,000, but do not exceed $450,000,000;

22 (vi) 2,450 races in any year following the most recent

23 preceding complete calendar year when the combined

24 adjusted gross receipts of the electronic gaming licensees

25 operating at Cook County race tracks total in excess of

26 $450,000,000, but do not exceed $500,000,000;

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1 (vii) 2,550 races in any year following the most recent

2 preceding complete calendar year when the combined

3 adjusted gross receipts of the electronic gaming licensees

4 operating at Cook County race tracks exceeds $500,000,000.

5 In awarding racing dates under this subsection (e-2), the

6 Board shall have the discretion to allocate those thoroughbred

7 racing dates among these Cook County organization licensees.

8 (e-3) In awarding racing dates for calendar year 2018 and

9 thereafter in connection with a race track in Madison County,

10 the Board shall award racing dates and such organization

11 licensee shall run at least 700 thoroughbred races at the race

12 track in Madison County each year.

13 Notwithstanding Section 7.7 of the Illinois Gambling Act or

14 any provision of this Act other than subsection (e-4.5), for

15 each calendar year for which an electronic gaming licensee

16 located in Madison County requests racing dates resulting in

17 less than 700 live thoroughbred races at its race track

18 facility, the electronic gaming licensee may not conduct

19 electronic gaming for the calendar year of such requested live

20 races.

21 (e-4) Notwithstanding the provisions of Section 7.7 of the

22 Illinois Gambling Act or any provision of this Act other than

23 subsections (e-3) and (e-4.5), for each calendar year for which

24 an electronic gaming licensee requests racing dates for a

25 specific horse breed which results in a number of live races

26 for that specific breed under its organization license that is

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1 less than the total number of live races for that specific

2 breed which it conducted in 2011 for standardbred racing and in

3 2016 for thoroughbred racing at its race track facility, the

4 electronic gaming licensee may not conduct electronic gaming

5 for the calendar year of such requested live races.

6 (e-4.5) The Board shall ensure that each organization

7 licensee shall individually run a sufficient number of races

8 per year to qualify for an electronic gaming license under this

9 Act. The General Assembly finds that the minimum live racing

10 guarantees contained in subsections (e-1), (e-2), and (e-3) are

11 in the best interest of the sport of horse racing, and that

12 such guarantees may only be reduced in the limited

13 circumstances described in this subsection. The Board may

14 decrease the number of racing days without affecting an

15 organization licensee's ability to conduct electronic gaming

16 only if the Board determines, after notice and hearing, that:

17 (i) a decrease is necessary to maintain a sufficient

18 number of betting interests per race to ensure the

19 integrity of racing;

20 (ii) there are unsafe track conditions due to weather

21 or acts of God;

22 (iii) there is an agreement between an organization

23 licensee and the breed association that is applicable to

24 the involved live racing guarantee, such association

25 representing either the largest number of thoroughbred

26 owners and trainers or the largest number of standardbred

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1 owners, trainers and drivers who race horses at the

2 involved organization licensee's racing meeting, so long

3 as the agreement does not compromise the integrity of the

4 sport of horse racing; or

5 (iv) the horse population or purse levels are

6 insufficient to provide the number of racing opportunities

7 otherwise required in this Act.

8 In decreasing the number of racing dates in accordance with

9 this subsection, the Board shall hold a hearing and shall

10 provide the public and all interested parties notice and an

11 opportunity to be heard. The Board shall accept testimony from

12 all interested parties, including any association representing

13 owners, trainers, jockeys, or drivers who will be affected by

14 the decrease in racing dates. The Board shall provide a written

15 explanation of the reasons for the decrease and the Board's

16 findings. The written explanation shall include a listing and

17 content of all communication between any party and any Illinois

18 Racing Board member or staff that does not take place at a

19 public meeting of the Board.

20 (e-5) In reviewing an application for the purpose of

21 granting an organization license consistent with the best

22 interests of the public and the sport of horse racing, the

23 Board shall consider:

24 (1) the character, reputation, experience, and

25 financial integrity of the applicant and of any other

26 separate person that either:

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1 (i) controls the applicant, directly or

2 indirectly, or

3 (ii) is controlled, directly or indirectly, by

4 that applicant or by a person who controls, directly or

5 indirectly, that applicant;

6 (2) the applicant's facilities or proposed facilities

7 for conducting horse racing;

8 (3) the total revenue without regard to Section 32.1 to

9 be derived by the State and horsemen from the applicant's

10 conducting a race meeting;

11 (4) the applicant's good faith affirmative action plan

12 to recruit, train, and upgrade minorities in all employment

13 classifications;

14 (5) the applicant's financial ability to purchase and

15 maintain adequate liability and casualty insurance;

16 (6) the applicant's proposed and prior year's

17 promotional and marketing activities and expenditures of

18 the applicant associated with those activities;

19 (7) an agreement, if any, among organization licensees

20 as provided in subsection (b) of Section 21 of this Act;

21 and

22 (8) the extent to which the applicant exceeds or meets

23 other standards for the issuance of an organization license

24 that the Board shall adopt by rule.

25 In granting organization licenses and allocating dates for

26 horse race meetings, the Board shall have discretion to

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1 determine an overall schedule, including required simulcasts

2 of Illinois races by host tracks that will, in its judgment, be

3 conducive to the best interests of the public and the sport of

4 horse racing.

5 (e-10) The Illinois Administrative Procedure Act shall

6 apply to administrative procedures of the Board under this Act

7 for the granting of an organization license, except that (1)

8 notwithstanding the provisions of subsection (b) of Section

9 10-40 of the Illinois Administrative Procedure Act regarding

10 cross-examination, the Board may prescribe rules limiting the

11 right of an applicant or participant in any proceeding to award

12 an organization license to conduct cross-examination of

13 witnesses at that proceeding where that cross-examination

14 would unduly obstruct the timely award of an organization

15 license under subsection (e) of Section 20 of this Act; (2) the

16 provisions of Section 10-45 of the Illinois Administrative

17 Procedure Act regarding proposals for decision are excluded

18 under this Act; (3) notwithstanding the provisions of

19 subsection (a) of Section 10-60 of the Illinois Administrative

20 Procedure Act regarding ex parte communications, the Board may

21 prescribe rules allowing ex parte communications with

22 applicants or participants in a proceeding to award an

23 organization license where conducting those communications

24 would be in the best interest of racing, provided all those

25 communications are made part of the record of that proceeding

26 pursuant to subsection (c) of Section 10-60 of the Illinois

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1 Administrative Procedure Act; (4) the provisions of Section 14a

2 of this Act and the rules of the Board promulgated under that

3 Section shall apply instead of the provisions of Article 10 of

4 the Illinois Administrative Procedure Act regarding

5 administrative law judges; and (5) the provisions of subsection

6 (d) of Section 10-65 of the Illinois Administrative Procedure

7 Act that prevent summary suspension of a license pending

8 revocation or other action shall not apply.

9 (f) The Board may allot racing dates to an organization

10 licensee for more than one calendar year but for no more than 3

11 successive calendar years in advance, provided that the Board

12 shall review such allotment for more than one calendar year

13 prior to each year for which such allotment has been made. The

14 granting of an organization license to a person constitutes a

15 privilege to conduct a horse race meeting under the provisions

16 of this Act, and no person granted an organization license

17 shall be deemed to have a vested interest, property right, or

18 future expectation to receive an organization license in any

19 subsequent year as a result of the granting of an organization

20 license. Organization licenses shall be subject to revocation

21 if the organization licensee has violated any provision of this

22 Act or the rules and regulations promulgated under this Act or

23 has been convicted of a crime or has failed to disclose or has

24 stated falsely any information called for in the application

25 for an organization license. Any organization license

26 revocation proceeding shall be in accordance with Section 16

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1 regarding suspension and revocation of occupation licenses.

2 (f-5) If, (i) an applicant does not file an acceptance of

3 the racing dates awarded by the Board as required under part

4 (1) of subsection (h) of this Section 20, or (ii) an

5 organization licensee has its license suspended or revoked

6 under this Act, the Board, upon conducting an emergency hearing

7 as provided for in this Act, may reaward on an emergency basis

8 pursuant to rules established by the Board, racing dates not

9 accepted or the racing dates associated with any suspension or

10 revocation period to one or more organization licensees, new

11 applicants, or any combination thereof, upon terms and

12 conditions that the Board determines are in the best interest

13 of racing, provided, the organization licensees or new

14 applicants receiving the awarded racing dates file an

15 acceptance of those reawarded racing dates as required under

16 paragraph (1) of subsection (h) of this Section 20 and comply

17 with the other provisions of this Act. The Illinois

18 Administrative Procedure Act shall not apply to the

19 administrative procedures of the Board in conducting the

20 emergency hearing and the reallocation of racing dates on an

21 emergency basis.

22 (g) (Blank).

23 (h) The Board shall send the applicant a copy of its

24 formally executed order by certified mail addressed to the

25 applicant at the address stated in his application, which

26 notice shall be mailed within 5 days of the date the formal

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1 order is executed.

2 Each applicant notified shall, within 10 days after receipt

3 of the final executed order of the Board awarding racing dates:

4 (1) file with the Board an acceptance of such award in

5 the form prescribed by the Board;

6 (2) pay to the Board an additional amount equal to $110

7 for each racing date awarded; and

8 (3) file with the Board the bonds required in Sections

9 21 and 25 at least 20 days prior to the first day of each

10 race meeting.

11 Upon compliance with the provisions of paragraphs (1), (2), and

12 (3) of this subsection (h), the applicant shall be issued an

13 organization license.

14 If any applicant fails to comply with this Section or fails

15 to pay the organization license fees herein provided, no

16 organization license shall be issued to such applicant.

17 (Source: P.A. 97-333, eff. 8-12-11.)

18 (230 ILCS 5/21) (from Ch. 8, par. 37-21)

19 Sec. 21. (a) Applications for organization licenses must be

20 filed with the Board at a time and place prescribed by the

21 rules and regulations of the Board. The Board shall examine the

22 applications within 21 days after the date allowed for filing

23 with respect to their conformity with this Act and such rules

24 and regulations as may be prescribed by the Board. If any

25 application does not comply with this Act or the rules and

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1 regulations prescribed by the Board, such application may be

2 rejected and an organization license refused to the applicant,

3 or the Board may, within 21 days of the receipt of such

4 application, advise the applicant of the deficiencies of the

5 application under the Act or the rules and regulations of the

6 Board, and require the submittal of an amended application

7 within a reasonable time determined by the Board; and upon

8 submittal of the amended application by the applicant, the

9 Board may consider the application consistent with the process

10 described in subsection (e-5) of Section 20 of this Act. If it

11 is found to be in compliance with this Act and the rules and

12 regulations of the Board, the Board may then issue an

13 organization license to such applicant.

14 (b) The Board may exercise discretion in granting racing

15 dates to qualified applicants different from those requested by

16 the applicants in their applications. However, if all eligible

17 applicants for organization licenses whose tracks are located

18 within 100 miles of each other execute and submit to the Board

19 a written agreement among such applicants as to the award of

20 racing dates, including where applicable racing programs, for

21 up to 3 consecutive years, then subject to annual review of

22 each applicant's compliance with Board rules and regulations,

23 provisions of this Act and conditions contained in annual dates

24 orders issued by the Board, the Board may grant such dates and

25 programs to such applicants as so agreed by them if the Board

26 determines that the grant of these racing dates is in the best

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1 interests of racing. The Board shall treat any such agreement

2 as the agreement signatories' joint and several application for

3 racing dates during the term of the agreement.

4 (c) Where 2 or more applicants propose to conduct horse

5 race meetings within 35 miles of each other, as certified to

6 the Board under Section 19 (a) (1) of this Act, on conflicting

7 dates, the Board may determine and grant the number of racing

8 days to be awarded to the several applicants in accordance with

9 the provisions of subsection (e-5) of Section 20 of this Act.

10 (d) (Blank).

11 (e) Prior to the issuance of an organization license, the

12 applicant shall file with the Board a bond payable to the State

13 of Illinois in the sum of $200,000, executed by the applicant

14 and a surety company or companies authorized to do business in

15 this State, and conditioned upon the payment by the

16 organization licensee of all taxes due under Section 27, other

17 monies due and payable under this Act, all purses due and

18 payable, and that the organization licensee will upon

19 presentation of the winning ticket or tickets distribute all

20 sums due to the patrons of pari-mutuel pools. Beginning on the

21 date when any organization licensee begins conducting

22 electronic gaming pursuant to an electronic gaming license

23 issued under the Illinois Gambling Act, the amount of the bond

24 required under this subsection (e) shall be $500,000.

25 (f) Each organization license shall specify the person to

26 whom it is issued, the dates upon which horse racing is

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1 permitted, and the location, place, track, or enclosure where

2 the horse race meeting is to be held.

3 (g) Any person who owns one or more race tracks within the

4 State may seek, in its own name, a separate organization

5 license for each race track.

6 (h) All racing conducted under such organization license is

7 subject to this Act and to the rules and regulations from time

8 to time prescribed by the Board, and every such organization

9 license issued by the Board shall contain a recital to that

10 effect.

11 (i) Each such organization licensee may provide that at

12 least one race per day may be devoted to the racing of quarter

13 horses, appaloosas, arabians, or paints.

14 (j) In acting on applications for organization licenses,

15 the Board shall give weight to an organization license which

16 has implemented a good faith affirmative action effort to

17 recruit, train and upgrade minorities in all classifications

18 within the organization license.

19 (Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)

20 (230 ILCS 5/24) (from Ch. 8, par. 37-24)

21 Sec. 24. (a) No license shall be issued to or held by an

22 organization licensee unless all of its officers, directors,

23 and holders of ownership interests of at least 5% are first

24 approved by the Board. The Board shall not give approval of an

25 organization license application to any person who has been

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1 convicted of or is under an indictment for a crime of moral

2 turpitude or has violated any provision of the racing law of

3 this State or any rules of the Board.

4 (b) An organization licensee must notify the Board within

5 10 days of any change in the holders of a direct or indirect

6 interest in the ownership of the organization licensee. The

7 Board may, after hearing, revoke the organization license of

8 any person who registers on its books or knowingly permits a

9 direct or indirect interest in the ownership of that person

10 without notifying the Board of the name of the holder in

11 interest within this period.

12 (c) In addition to the provisions of subsection (a) of this

13 Section, no person shall be granted an organization license if

14 any public official of the State or member of his or her family

15 holds any ownership or financial interest, directly or

16 indirectly, in the person.

17 (d) No person which has been granted an organization

18 license to hold a race meeting shall give to any public

19 official or member of his family, directly or indirectly, for

20 or without consideration, any interest in the person. The Board

21 shall, after hearing, revoke the organization license granted

22 to a person which has violated this subsection.

23 (e) (Blank).

24 (f) No organization licensee or concessionaire or officer,

25 director or holder or controller of 5% or more legal or

26 beneficial interest in any organization licensee or concession

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1 shall make any sort of gift or contributionthat is prohibited

2 under Article 10 of the State Officials and Employees Ethics

3 Act ~~of any kind~~or pay or give any money or other thing of value

4 to any person who is a public official, or a candidate or

5 nominee for public office if that payment or gift is prohibited

6 under Article 10 of the State Officials and Employees Ethics

7 Act.

8 (Source: P.A. 89-16, eff. 5-30-95.)

9 (230 ILCS 5/25) (from Ch. 8, par. 37-25)

10 Sec. 25. Admission charge; bond; fine.

11 (a) There shall be paid to the Board at such time or times

12 as it shall prescribe, the sum of fifteen cents (15�) for each

13 person entering the grounds or enclosure of each organization

14 licensee and inter-track wagering licensee upon a ticket of

15 admission except as provided in subsection (g) of Section 27 of

16 this Act. If tickets are issued for more than one day then the

17 sum of fifteen cents (15�) shall be paid for each person using

18 such ticket on each day that the same shall be used. Provided,

19 however, that no charge shall be made on tickets of admission

20 issued to and in the name of directors, officers, agents or

21 employees of the organization licensee, or inter-track

22 wagering licensee, or to owners, trainers, jockeys, drivers and

23 their employees or to any person or persons entering the

24 grounds or enclosure for the transaction of business in

25 connection with such race meeting. The organization licensee or

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1 inter-track wagering licensee may, if it desires, collect such

2 amount from each ticket holder in addition to the amount or

3 amounts charged for such ticket of admission.Beginning on the

4 date when any organization licensee begins conducting

5 electronic gaming pursuant to an electronic gaming license

6 issued under the Illinois Gambling Act, the admission charge

7 imposed by this subsection (a) shall be 40 cents for each

8 person entering the grounds or enclosure of each organization

9 licensee and inter-track wagering licensee upon a ticket of

10 admission, and if such tickets are issued for more than one

11 day, 40 cents shall be paid for each person using such ticket

12 on each day that the same shall be used.

13 (b) Accurate records and books shall at all times be kept

14 and maintained by the organization licensees and inter-track

15 wagering licensees showing the admission tickets issued and

16 used on each racing day and the attendance thereat of each

17 horse racing meeting. The Board or its duly authorized

18 representative or representatives shall at all reasonable

19 times have access to the admission records of any organization

20 licensee and inter-track wagering licensee for the purpose of

21 examining and checking the same and ascertaining whether or not

22 the proper amount has been or is being paid the State of

23 Illinois as herein provided. The Board shall also require,

24 before issuing any license, that the licensee shall execute and

25 deliver to it a bond, payable to the State of Illinois, in such

26 sum as it shall determine, not, however, in excess of fifty

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1 thousand dollars ($50,000), with a surety or sureties to be

2 approved by it, conditioned for the payment of all sums due and

3 payable or collected by it under this Section upon admission

4 fees received for any particular racing meetings. The Board may

5 also from time to time require sworn statements of the number

6 or numbers of such admissions and may prescribe blanks upon

7 which such reports shall be made. Any organization licensee or

8 inter-track wagering licensee failing or refusing to pay the

9 amount found to be due as herein provided, shall be deemed

10 guilty of a business offense and upon conviction shall be

11 punished by a fine of not more than five thousand dollars

12 ($5,000) in addition to the amount due from such organization

13 licensee or inter-track wagering licensee as herein provided.

14 All fines paid into court by an organization licensee or

15 inter-track wagering licensee found guilty of violating this

16 Section shall be transmitted and paid over by the clerk of the

17 court to the Board. Beginning on the date when any organization

18 licensee begins conducting electronic gaming pursuant to an

19 electronic gaming license issued under the Illinois Gambling

20 Act, any fine imposed pursuant to this subsection (b) shall not

21 exceed $10,000.

22 (Source: P.A. 88-495; 89-16, eff. 5-30-95.)

23 (230 ILCS 5/26) (from Ch. 8, par. 37-26)

24 Sec. 26. Wagering.

25 (a) Any licensee may conduct and supervise the pari-mutuel

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1 system of wagering, as defined in Section 3.12 of this Act, on

2 horse races conducted by an Illinois organization licensee or

3 conducted at a racetrack located in another state or country

4 ~~and televised in Illinois~~ in accordance with subsection (g) of

5 Section 26 of this Act. Subject to the prior consent of the

6 Board, licensees may supplement any pari-mutuel pool in order

7 to guarantee a minimum distribution. Such pari-mutuel method of

8 wagering shall not, under any circumstances if conducted under

9 the provisions of this Act, be held or construed to be

10 unlawful, other statutes of this State to the contrary

11 notwithstanding. Subject to rules for advance wagering

12 promulgated by the Board, any licensee may accept wagers in

13 advance of the day of the race wagered upon occurs.

14 (b) Except for those gaming activities for which a license

15 is obtained and authorized under the Illinois Lottery Law, the

16 Charitable Games Act, the Raffles and Poker Runs Act, or the

17 Illinois Gambling Act, no ~~No~~ other method of betting, pool

18 making, wagering or gambling shall be used or permitted by the

19 licensee. Each licensee may retain, subject to the payment of

20 all applicable taxes and purses, an amount not to exceed 17% of

21 all money wagered under subsection (a) of this Section, except

22 as may otherwise be permitted under this Act.

23 (b-5) An individual may place a wager under the pari-mutuel

24 system from any licensed location authorized under this Act

25 provided that wager is electronically recorded in the manner

26 described in Section 3.12 of this Act. Any wager made

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1 electronically by an individual while physically on the

2 premises of a licensee shall be deemed to have been made at the

3 premises of that licensee.

4 (c) Until January 1, 2000, the sum held by any licensee for

5 payment of outstanding pari-mutuel tickets, if unclaimed prior

6 to December 31 of the next year, shall be retained by the

7 licensee for payment of such tickets until that date. Within 10

8 days thereafter, the balance of such sum remaining unclaimed,

9 less any uncashed supplements contributed by such licensee for

10 the purpose of guaranteeing minimum distributions of any

11 pari-mutuel pool, shall be paid to the Illinois Veterans'

12 Rehabilitation Fund of the State treasury, except as provided

13 in subsection (g) of Section 27 of this Act.

14 (c-5) Beginning January 1, 2000, the sum held by any

15 licensee for payment of outstanding pari-mutuel tickets, if

16 unclaimed prior to December 31 of the next year, shall be

17 retained by the licensee for payment of such tickets until that

18 date. Within 10 days thereafter, the balance of such sum

19 remaining unclaimed, less any uncashed supplements contributed

20 by such licensee for the purpose of guaranteeing minimum

21 distributions of any pari-mutuel pool, shall be evenly

22 distributed to the purse account of the organization licensee

23 and the organization licensee.

24 (d) A pari-mutuel ticket shall be honored until December 31

25 of the next calendar year, and the licensee shall pay the same

26 and may charge the amount thereof against unpaid money

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1 similarly accumulated on account of pari-mutuel tickets not

2 presented for payment.

3 (e) No licensee shall knowingly permit any minor, other

4 than an employee of such licensee or an owner, trainer, jockey,

5 driver, or employee thereof, to be admitted during a racing

6 program unless accompanied by a parent or guardian, or any

7 minor to be a patron of the pari-mutuel system of wagering

8 conducted or supervised by it. The admission of any

9 unaccompanied minor, other than an employee of the licensee or

10 an owner, trainer, jockey, driver, or employee thereof at a

11 race track is a Class C misdemeanor.

12 (f) Notwithstanding the other provisions of this Act, an

13 organization licensee may contract with an entity in another

14 state or country to permit any legal wagering entity in another

15 state or country to accept wagers solely within such other

16 state or country on races conducted by the organization

17 licensee in this State. Beginning January 1, 2000, these wagers

18 shall not be subject to State taxation. Until January 1, 2000,

19 when the out-of-State entity conducts a pari-mutuel pool

20 separate from the organization licensee, a privilege tax equal

21 to 7 1/2% of all monies received by the organization licensee

22 from entities in other states or countries pursuant to such

23 contracts is imposed on the organization licensee, and such

24 privilege tax shall be remitted to the Department of Revenue

25 within 48 hours of receipt of the moneys from the simulcast.

26 When the out-of-State entity conducts a combined pari-mutuel

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1 pool with the organization licensee, the tax shall be 10% of

2 all monies received by the organization licensee with 25% of

3 the receipts from this 10% tax to be distributed to the county

4 in which the race was conducted.

5 An organization licensee may permit one or more of its

6 races to be utilized for pari-mutuel wagering at one or more

7 locations in other states and may transmit audio and visual

8 signals of races the organization licensee conducts to one or

9 more locations outside the State or country and may also permit

10 pari-mutuel pools in other states or countries to be combined

11 with its gross or net wagering pools or with wagering pools

12 established by other states.

13 (g) A host track may accept interstate simulcast wagers on

14 horse races conducted in other states or countries and shall

15 control the number of signals and types of breeds of racing in

16 its simulcast program, subject to the disapproval of the Board.

17 The Board may prohibit a simulcast program only if it finds

18 that the simulcast program is clearly adverse to the integrity

19 of racing. The host track simulcast program shall include the

20 signal of live racing of all organization licensees. All

21 non-host licensees and advance deposit wagering licensees

22 shall carry the signal of and accept wagers on live racing of

23 all organization licensees. Advance deposit wagering licensees

24 shall not be permitted to accept out-of-state wagers on any

25 Illinois signal provided pursuant to this Section without the

26 approval and consent of the organization licensee providing the

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1 signal. For one year after August 15, 2014 (the effective date

2 of Public Act 98-968) ~~this amendatory Act of the 98th General~~

3 ~~Assembly~~, non-host licensees may carry the host track simulcast

4 program and shall accept wagers on all races included as part

5 of the simulcast program of horse races conducted at race

6 tracks located within North America upon which wagering is

7 permitted. For a period of one year after August 15, 2014 (the

8 effective date of Public Act 98-968) ~~this amendatory Act of the~~

9 ~~98th General Assembly~~, on horse races conducted at race tracks

10 located outside of North America, non-host licensees may accept

11 wagers on all races included as part of the simulcast program

12 upon which wagering is permitted. Beginning August 15, 2015

13 (one year after the effective date of Public Act 98-968) ~~this~~

14 ~~amendatory Act of the 98th General Assembly~~, non-host licensees

15 may carry the host track simulcast program and shall accept

16 wagers on all races included as part of the simulcast program

17 upon which wagering is permitted. All organization licensees

18 shall provide their live signal to all advance deposit wagering

19 licensees for a simulcast commission fee not to exceed 6% of

20 the advance deposit wagering licensee's Illinois handle on the

21 organization licensee's signal without prior approval by the

22 Board. The Board may adopt rules under which it may permit

23 simulcast commission fees in excess of 6%. The Board shall

24 adopt rules limiting the interstate commission fees charged to

25 an advance deposit wagering licensee. The Board shall adopt

26 rules regarding advance deposit wagering on interstate

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1 simulcast races that shall reflect, among other things, the

2 General Assembly's desire to maximize revenues to the State,

3 horsemen purses, and organizational licensees. However,

4 organization licensees providing live signals pursuant to the

5 requirements of this subsection (g) may petition the Board to

6 withhold their live signals from an advance deposit wagering

7 licensee if the organization licensee discovers and the Board

8 finds reputable or credible information that the advance

9 deposit wagering licensee is under investigation by another

10 state or federal governmental agency, the advance deposit

11 wagering licensee's license has been suspended in another

12 state, or the advance deposit wagering licensee's license is in

13 revocation proceedings in another state. The organization

14 licensee's provision of their live signal to an advance deposit

15 wagering licensee under this subsection (g) pertains to wagers

16 placed from within Illinois. Advance deposit wagering

17 licensees may place advance deposit wagering terminals at

18 wagering facilities as a convenience to customers. The advance

19 deposit wagering licensee shall not charge or collect any fee

20 from purses for the placement of the advance deposit wagering

21 terminals. The costs and expenses of the host track and

22 non-host licensees associated with interstate simulcast

23 wagering, other than the interstate commission fee, shall be

24 borne by the host track and all non-host licensees incurring

25 these costs. The interstate commission fee shall not exceed 5%

26 of Illinois handle on the interstate simulcast race or races

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1 without prior approval of the Board. The Board shall promulgate

2 rules under which it may permit interstate commission fees in

3 excess of 5%. The interstate commission fee and other fees

4 charged by the sending racetrack, including, but not limited

5 to, satellite decoder fees, shall be uniformly applied to the

6 host track and all non-host licensees.

7 Notwithstanding any other provision of this Act, ~~through~~

8 ~~December 31, 2018,~~ an organization licensee, with the consent

9 of the horsemen association representing the largest number of

10 owners, trainers, jockeys, or standardbred drivers who race

11 horses at that organization licensee's racing meeting, may

12 maintain a system whereby advance deposit wagering may take

13 place or an organization licensee, with the consent of the

14 horsemen association representing the largest number of

15 owners, trainers, jockeys, or standardbred drivers who race

16 horses at that organization licensee's racing meeting, may

17 contract with another person to carry out a system of advance

18 deposit wagering. Such consent may not be unreasonably

19 withheld. Only with respect to an appeal to the Board that

20 consent for an organization licensee that maintains its own

21 advance deposit wagering system is being unreasonably

22 withheld, the Board shall issue a final order within 30 days

23 after initiation of the appeal, and the organization licensee's

24 advance deposit wagering system may remain operational during

25 that 30-day period. The actions of any organization licensee

26 who conducts advance deposit wagering or any person who has a

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1 contract with an organization licensee to conduct advance

2 deposit wagering who conducts advance deposit wagering on or

3 after January 1, 2013 and prior to June 7, 2013 (the effective

4 date of Public Act 98-18) ~~this amendatory Act of the 98th~~

5 ~~General Assembly~~ taken in reliance on the changes made to this

6 subsection (g) by Public Act 98-18 ~~this amendatory Act of the~~

7 ~~98th General Assembly~~ are hereby validated, provided payment of

8 all applicable pari-mutuel taxes are remitted to the Board. All

9 advance deposit wagers placed from within Illinois must be

10 placed through a Board-approved advance deposit wagering

11 licensee; no other entity may accept an advance deposit wager

12 from a person within Illinois. All advance deposit wagering is

13 subject to any rules adopted by the Board. The Board may adopt

14 rules necessary to regulate advance deposit wagering through

15 the use of emergency rulemaking in accordance with Section 5-45

16 of the Illinois Administrative Procedure Act. The General

17 Assembly finds that the adoption of rules to regulate advance

18 deposit wagering is deemed an emergency and necessary for the

19 public interest, safety, and welfare. An advance deposit

20 wagering licensee may retain all moneys as agreed to by

21 contract with an organization licensee. Any moneys retained by

22 the organization licensee from advance deposit wagering, not

23 including moneys retained by the advance deposit wagering

24 licensee, shall be paid 50% to the organization licensee's

25 purse account and 50% to the organization licensee. With the

26 exception of any organization licensee that is owned by a

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1 publicly traded company that is incorporated in a state other

2 than Illinois and advance deposit wagering licensees under

3 contract with such organization licensees, organization

4 licensees that maintain advance deposit wagering systems and

5 advance deposit wagering licensees that contract with

6 organization licensees shall provide sufficiently detailed

7 monthly accountings to the horsemen association representing

8 the largest number of owners, trainers, jockeys, or

9 standardbred drivers who race horses at that organization

10 licensee's racing meeting so that the horsemen association, as

11 an interested party, can confirm the accuracy of the amounts

12 paid to the purse account at the horsemen association's

13 affiliated organization licensee from advance deposit

14 wagering. If more than one breed races at the same race track

15 facility, then the 50% of the moneys to be paid to an

16 organization licensee's purse account shall be allocated among

17 all organization licensees' purse accounts operating at that

18 race track facility proportionately based on the actual number

19 of host days that the Board grants to that breed at that race

20 track facility in the current calendar year. To the extent any

21 fees from advance deposit wagering conducted in Illinois for

22 wagers in Illinois or other states have been placed in escrow

23 or otherwise withheld from wagers pending a determination of

24 the legality of advance deposit wagering, no action shall be

25 brought to declare such wagers or the disbursement of any fees

26 previously escrowed illegal.

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1 (1) Between the hours of 6:30 a.m. and 6:30 p.m. an

2 inter-track ~~intertrack~~wagering licensee other than the

3 host track may supplement the host track simulcast program

4 with additional simulcast races or race programs, provided

5 that between January 1 and the third Friday in February of

6 any year, inclusive, if no live thoroughbred racing is

7 occurring in Illinois during this period, only

8 thoroughbred races may be used for supplemental interstate

9 simulcast purposes. The Board shall withhold approval for a

10 supplemental interstate simulcast only if it finds that the

11 simulcast is clearly adverse to the integrity of racing. A

12 supplemental interstate simulcast may be transmitted from

13 an inter-track ~~intertrack~~wagering licensee to its

14 affiliated non-host licensees. The interstate commission

15 fee for a supplemental interstate simulcast shall be paid

16 by the non-host licensee and its affiliated non-host

17 licensees receiving the simulcast.

18 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an

19 inter-track ~~intertrack~~wagering licensee other than the

20 host track may receive supplemental interstate simulcasts

21 only with the consent of the host track, except when the

22 Board finds that the simulcast is clearly adverse to the

23 integrity of racing. Consent granted under this paragraph

24 (2) to any inter-track ~~intertrack~~ wagering licensee shall

25 be deemed consent to all non-host licensees. The interstate

26 commission fee for the supplemental interstate simulcast

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1 shall be paid by all participating non-host licensees.

2 (3) Each licensee conducting interstate simulcast

3 wagering may retain, subject to the payment of all

4 applicable taxes and the purses, an amount not to exceed

5 17% of all money wagered. If any licensee conducts the

6 pari-mutuel system wagering on races conducted at

7 racetracks in another state or country, each such race or

8 race program shall be considered a separate racing day for

9 the purpose of determining the daily handle and computing

10 the privilege tax of that daily handle as provided in

11 subsection (a) of Section 27. Until January 1, 2000, from

12 the sums permitted to be retained pursuant to this

13 subsection, eachinter-track ~~intertrack~~ wagering location

14 licensee shall pay 1% of the pari-mutuel handle wagered on

15 simulcast wagering to the Horse Racing Tax Allocation Fund,

16 subject to the provisions of subparagraph (B) of paragraph

17 (11) of subsection (h) of Section 26 of this Act.

18 (4) A licensee who receives an interstate simulcast may

19 combine its gross or net pools with pools at the sending

20 racetracks pursuant to rules established by the Board. All

21 licensees combining their gross pools at a sending

22 racetrack shall adopt the take-out percentages of the

23 sending racetrack. A licensee may also establish a separate

24 pool and takeout structure for wagering purposes on races

25 conducted at race tracks outside of the State of Illinois.

26 The licensee may permit pari-mutuel wagers placed in other

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1 states or countries to be combined with its gross or net

2 wagering pools or other wagering pools.

3 (5) After the payment of the interstate commission fee

4 (except for the interstate commission fee on a supplemental

5 interstate simulcast, which shall be paid by the host track

6 and by each non-host licensee through the host-track) and

7 all applicable State and local taxes, except as provided in

8 subsection (g) of Section 27 of this Act, the remainder of

9 moneys retained from simulcast wagering pursuant to this

10 subsection (g), and Section 26.2 shall be divided as

11 follows:

12 (A) For interstate simulcast wagers made at a host

13 track, 50% to the host track and 50% to purses at the

14 host track.

15 (B) For wagers placed on interstate simulcast

16 races, supplemental simulcasts as defined in

17 subparagraphs (1) and (2), and separately pooled races

18 conducted outside of the State of Illinois made at a

19 non-host licensee, 25% to the host track, 25% to the

20 non-host licensee, and 50% to the purses at the host

21 track.

22 (6) Notwithstanding any provision in this Act to the

23 contrary, non-host licensees who derive their licenses

24 from a track located in a county with a population in

25 excess of 230,000 and that borders the Mississippi River

26 may receive supplemental interstate simulcast races at all

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1 times subject to Board approval, which shall be withheld

2 only upon a finding that a supplemental interstate

3 simulcast is clearly adverse to the integrity of racing.

4 (7) Notwithstanding any provision of this Act to the

5 contrary, after payment of all applicable State and local

6 taxes and interstate commission fees, non-host licensees

7 who derive their licenses from a track located in a county

8 with a population in excess of 230,000 and that borders the

9 Mississippi River shall retain 50% of the retention from

10 interstate simulcast wagers and shall pay 50% to purses at

11 the track from which the non-host licensee derives its

12 license as follows:

13 (A) Between January 1 and the third Friday in

14 February, inclusive, if no live thoroughbred racing is

15 occurring in Illinois during this period, when the

16 interstate simulcast is a standardbred race, the purse

17 share to its standardbred purse account;

18 (B) Between January 1 and the third Friday in

19 February, inclusive, if no live thoroughbred racing is

20 occurring in Illinois during this period, and the

21 interstate simulcast is a thoroughbred race, the purse

22 share to its interstate simulcast purse pool to be

23 distributed under paragraph (10) of this subsection

24 (g);

25 (C) Between January 1 and the third Friday in

26 February, inclusive, if live thoroughbred racing is

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1 occurring in Illinois, between 6:30 a.m. and 6:30 p.m.

2 the purse share from wagers made during this time

3 period to its thoroughbred purse account and between

4 6:30 p.m. and 6:30 a.m. the purse share from wagers

5 made during this time period to its standardbred purse

6 accounts;

7 (D) Between the third Saturday in February and

8 December 31, when the interstate simulcast occurs

9 between the hours of 6:30 a.m. and 6:30 p.m., the purse

10 share to its thoroughbred purse account;

11 (E) Between the third Saturday in February and

12 December 31, when the interstate simulcast occurs

13 between the hours of 6:30 p.m. and 6:30 a.m., the purse

14 share to its standardbred purse account.

15 (7.1) Notwithstanding any other provision of this Act

16 to the contrary, if no standardbred racing is conducted at

17 a racetrack located in Madison County during any calendar

18 year beginning on or after January 1, 2002, all moneys

19 derived by that racetrack from simulcast wagering and

20 inter-track wagering that (1) are to be used for purses and

21 (2) are generated between the hours of 6:30 p.m. and 6:30

22 a.m. during that calendar year shall be paid as 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 paid to its thoroughbred purse account;

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1 and

2 (B) Twenty percent shall be deposited into the

3 Illinois Colt Stakes Purse Distribution Fund and shall

4 be paid to purses for standardbred races for Illinois

5 conceived and foaled horses conducted at any county

6 fairgrounds. The moneys deposited into the Fund

7 pursuant to this subparagraph (B) shall be deposited

8 within 2 weeks after the day they were generated, shall

9 be in addition to and not in lieu of any other moneys

10 paid to standardbred purses under this Act, and shall

11 not be commingled with other moneys paid into that

12 Fund. The moneys deposited pursuant to this

13 subparagraph (B) shall be allocated as provided by the

14 Department of Agriculture, with the advice and

15 assistance of the Illinois Standardbred Breeders Fund

16 Advisory Board.

17 (7.2) Notwithstanding any other provision of this Act

18 to the contrary, if no thoroughbred racing is conducted at

19 a racetrack located in Madison County during any calendar

20 year beginning on or after January 1, 2002, all moneys

21 derived by that racetrack from simulcast wagering and

22 inter-track wagering that (1) are to be used for purses and

23 (2) are generated between the hours of 6:30 a.m. and 6:30

24 p.m. during that calendar year shall be deposited as

25 follows:

26 (A) If the licensee that conducts horse racing at

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1 that racetrack requests from the Board at least as many

2 racing dates as were conducted in calendar year 2000,

3 80% shall be deposited into its standardbred purse

4 account; and

5 (B) Twenty percent shall be deposited into the

6 Illinois Colt Stakes Purse Distribution Fund. Moneys

7 deposited into the Illinois Colt Stakes Purse

8 Distribution Fund pursuant to this subparagraph (B)

9 shall be paid to Illinois conceived and foaled

10 thoroughbred breeders' programs and to thoroughbred

11 purses for races conducted at any county fairgrounds

12 for Illinois conceived and foaled horses at the

13 discretion of the Department of Agriculture, with the

14 advice and assistance of the Illinois Thoroughbred

15 Breeders Fund Advisory Board. The moneys deposited

16 into the Illinois Colt Stakes Purse Distribution Fund

17 pursuant to this subparagraph (B) shall be deposited

18 within 2 weeks after the day they were generated, shall

19 be in addition to and not in lieu of any other moneys

20 paid to thoroughbred purses under this Act, and shall

21 not be commingled with other moneys deposited into that

22 Fund.

23 (7.3) If no live standardbred racing is conducted at a

24 racetrack located in Madison County in calendar year 2000

25 or 2001, an organization licensee who is licensed to

26 conduct horse racing at that racetrack shall, before

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1 January 1, 2002, pay all moneys derived from simulcast

2 wagering and inter-track wagering in calendar years 2000

3 and 2001 and paid into the licensee's standardbred purse

4 account as follows:

5 (A) Eighty percent to that licensee's thoroughbred

6 purse account to be used for thoroughbred purses; and

7 (B) Twenty percent to the Illinois Colt Stakes

8 Purse Distribution Fund.

9 Failure to make the payment to the Illinois Colt Stakes

10 Purse Distribution Fund before January 1, 2002 shall result

11 in the immediate revocation of the licensee's organization

12 license, inter-track wagering license, and inter-track

13 wagering location license.

14 Moneys paid into the Illinois Colt Stakes Purse

15 Distribution Fund pursuant to this paragraph (7.3) shall be

16 paid to purses for standardbred races for Illinois

17 conceived and foaled horses conducted at any county

18 fairgrounds. Moneys paid into the Illinois Colt Stakes

19 Purse Distribution Fund pursuant to this paragraph (7.3)

20 shall be used as determined by the Department of

21 Agriculture, with the advice and assistance of the Illinois

22 Standardbred Breeders Fund Advisory Board, shall be in

23 addition to and not in lieu of any other moneys paid to

24 standardbred purses under this Act, and shall not be

25 commingled with any other moneys paid into that Fund.

26 (7.4) If live standardbred racing is conducted at a

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1 racetrack located in Madison County at any time in calendar

2 year 2001 before the payment required under paragraph (7.3)

3 has been made, the organization licensee who is licensed to

4 conduct racing at that racetrack shall pay all moneys

5 derived by that racetrack from simulcast wagering and

6 inter-track wagering during calendar years 2000 and 2001

7 that (1) are to be used for purses and (2) are generated

8 between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or

9 2001 to the standardbred purse account at that racetrack to

10 be used for standardbred purses.

11 (8) Notwithstanding any provision in this Act to the

12 contrary, an organization licensee from a track located in

13 a county with a population in excess of 230,000 and that

14 borders the Mississippi River and its affiliated non-host

15 licensees shall not be entitled to share in any retention

16 generated on racing, inter-track wagering, or simulcast

17 wagering at any other Illinois wagering facility.

18 (8.1) Notwithstanding any provisions in this Act to the

19 contrary, if 2 organization licensees are conducting

20 standardbred race meetings concurrently between the hours

21 of 6:30 p.m. and 6:30 a.m., after payment of all applicable

22 State and local taxes and interstate commission fees, the

23 remainder of the amount retained from simulcast wagering

24 otherwise attributable to the host track and to host track

25 purses shall be split daily between the 2 organization

26 licensees and the purses at the tracks of the 2

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1 organization licensees, respectively, based on each

2 organization licensee's share of the total live handle for

3 that day, provided that this provision shall not apply to

4 any non-host licensee that derives its license from a track

5 located in a county with a population in excess of 230,000

6 and that borders the Mississippi River.

7 (9) (Blank).

8 (10) (Blank).

9 (11) (Blank).

10 (12) The Board shall have authority to compel all host

11 tracks to receive the simulcast of any or all races

12 conducted at the Springfield or DuQuoin State fairgrounds

13 and include all such races as part of their simulcast

14 programs.

15 (13) Notwithstanding any other provision of this Act,

16 in the event that the total Illinois pari-mutuel handle on

17 Illinois horse races at all wagering facilities in any

18 calendar year is less than 75% of the total Illinois

19 pari-mutuel handle on Illinois horse races at all such

20 wagering facilities for calendar year 1994, then each

21 wagering facility that has an annual total Illinois

22 pari-mutuel handle on Illinois horse races that is less

23 than 75% of the total Illinois pari-mutuel handle on

24 Illinois horse races at such wagering facility for calendar

25 year 1994, shall be permitted to receive, from any amount

26 otherwise payable to the purse account at the race track

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1 with which the wagering facility is affiliated in the

2 succeeding calendar year, an amount equal to 2% of the

3 differential in total Illinois pari-mutuel handle on

4 Illinois horse races at the wagering facility between that

5 calendar year in question and 1994 provided, however, that

6 a wagering facility shall not be entitled to any such

7 payment until the Board certifies in writing to the

8 wagering facility the amount to which the wagering facility

9 is entitled and a schedule for payment of the amount to the

10 wagering facility, based on: (i) the racing dates awarded

11 to the race track affiliated with the wagering facility

12 during the succeeding year; (ii) the sums available or

13 anticipated to be available in the purse account of the

14 race track affiliated with the wagering facility for purses

15 during the succeeding year; and (iii) the need to ensure

16 reasonable purse levels during the payment period. The

17 Board's certification shall be provided no later than

18 January 31 of the succeeding year. In the event a wagering

19 facility entitled to a payment under this paragraph (13) is

20 affiliated with a race track that maintains purse accounts

21 for both standardbred and thoroughbred racing, the amount

22 to be paid to the wagering facility shall be divided

23 between each purse account pro rata, based on the amount of

24 Illinois handle on Illinois standardbred and thoroughbred

25 racing respectively at the wagering facility during the

26 previous calendar year. Annually, the General Assembly

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1 shall appropriate sufficient funds from the General

2 Revenue Fund to the Department of Agriculture for payment

3 into the thoroughbred and standardbred horse racing purse

4 accounts at Illinois pari-mutuel tracks. The amount paid to

5 each purse account shall be the amount certified by the

6 Illinois Racing Board in January to be transferred from

7 each account to each eligible racing facility in accordance

8 with the provisions of this Section. Beginning in the

9 calendar year in which an organization licensee that is

10 eligible to receive payment under this paragraph (13)

11 begins to receive funds from electronic gaming, the amount

12 of the payment due to all wagering facilities licensed

13 under that organization licensee under this paragraph (13)

14 shall be the amount certified by the Board in January of

15 that year. An organization licensee and its related

16 wagering facilities shall no longer be able to receive

17 payments under this paragraph (13) beginning in the year

18 subsequent to the first year in which the organization

19 licensee begins to receive funds from electronic gaming.

20 (h) The Board may approve and license the conduct of

21 inter-track wagering and simulcast wagering by inter-track

22 wagering licensees and inter-track wagering location licensees

23 subject to the following terms and conditions:

24 (1) Any person licensed to conduct a race meeting (i)

25 at a track where 60 or more days of racing were conducted

26 during the immediately preceding calendar year or where

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1 over the 5 immediately preceding calendar years an average

2 of 30 or more days of racing were conducted annually may be

3 issued an inter-track wagering license; (ii) at a track

4 located in a county that is bounded by the Mississippi

5 River, which has a population of less than 150,000

6 according to the 1990 decennial census, and an average of

7 at least 60 days of racing per year between 1985 and 1993

8 may be issued an inter-track wagering license; or (iii) at

9 a track located in Madison County that conducted at least

10 100 days of live racing during the immediately preceding

11 calendar year may be issued an inter-track wagering

12 license, unless a lesser schedule of live racing is the

13 result of (A) weather, unsafe track conditions, or other

14 acts of God; (B) an agreement between the organization

15 licensee and the associations representing the largest

16 number of owners, trainers, jockeys, or standardbred

17 drivers who race horses at that organization licensee's

18 racing meeting; or (C) a finding by the Board of

19 extraordinary circumstances and that it was in the best

20 interest of the public and the sport to conduct fewer than

21 100 days of live racing. Any such person having operating

22 control of the racing facility may receive inter-track

23 wagering location licenses. An eligible race track located

24 in a county that has a population of more than 230,000 and

25 that is bounded by the Mississippi River may establish up

26 to 9 inter-track wagering locations, ~~and~~ an eligible race

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1 track located in Stickney Township in Cook County may

2 establish up to 16 inter-track wagering locations, and an

3 eligible race track located in Palatine Township in Cook

4 County may establish up to 18 inter-track wagering

5 locations. An application for said license shall be filed

6 with the Board prior to such dates as may be fixed by the

7 Board. With an application for an inter-track wagering

8 location license there shall be delivered to the Board a

9 certified check or bank draft payable to the order of the

10 Board for an amount equal to $500. The application shall be

11 on forms prescribed and furnished by the Board. The

12 application shall comply with all other rules, regulations

13 and conditions imposed by the Board in connection

14 therewith.

15 (2) The Board shall examine the applications with

16 respect to their conformity with this Act and the rules and

17 regulations imposed by the Board. If found to be in

18 compliance with the Act and rules and regulations of the

19 Board, the Board may then issue a license to conduct

20 inter-track wagering and simulcast wagering to such

21 applicant. All such applications shall be acted upon by the

22 Board at a meeting to be held on such date as may be fixed

23 by the Board.

24 (3) In granting licenses to conduct inter-track

25 wagering and simulcast wagering, the Board shall give due

26 consideration to the best interests of the public, of horse

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1 racing, and of maximizing revenue to the State.

2 (4) Prior to the issuance of a license to conduct

3 inter-track wagering and simulcast wagering, the applicant

4 shall file with the Board a bond payable to the State of

5 Illinois in the sum of $50,000, executed by the applicant

6 and a surety company or companies authorized to do business

7 in this State, and conditioned upon (i) the payment by the

8 licensee of all taxes due under Section 27 or 27.1 and any

9 other monies due and payable under this Act, and (ii)

10 distribution by the licensee, upon presentation of the

11 winning ticket or tickets, of all sums payable to the

12 patrons of pari-mutuel pools.

13 (5) Each license to conduct inter-track wagering and

14 simulcast wagering shall specify the person to whom it is

15 issued, the dates on which such wagering is permitted, and

16 the track or location where the wagering is to be

17 conducted.

18 (6) All wagering under such license is subject to this

19 Act and to the rules and regulations from time to time

20 prescribed by the Board, and every such license issued by

21 the Board shall contain a recital to that effect.

22 (7) An inter-track wagering licensee or inter-track

23 wagering location licensee may accept wagers at the track

24 or location where it is licensed, or as otherwise provided

25 under this Act.

26 (8) Inter-track wagering or simulcast wagering shall

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1 not be conducted at any track less than4 ~~5~~ miles from a

2 track at which a racing meeting is in progress.

3 (8.1) Inter-track wagering location licensees who

4 derive their licenses from a particular organization

5 licensee shall conduct inter-track wagering and simulcast

6 wagering only at locations that are within 160 miles of

7 that race track where the particular organization licensee

8 is licensed to conduct racing. However, inter-track

9 wagering and simulcast wagering shall not be conducted by

10 those licensees at any location within 5 miles of any race

11 track at which a horse race meeting has been licensed in

12 the current year, unless the person having operating

13 control of such race track has given its written consent to

14 such inter-track wagering location licensees, which

15 consent must be filed with the Board at or prior to the

16 time application is made. In the case of any inter-track

17 wagering location licensee initially licensed after

18 December 31, 2013, inter-track wagering and simulcast

19 wagering shall not be conducted by those inter-track

20 wagering location licensees that are located outside the

21 City of Chicago at any location within 8 miles of any race

22 track at which a horse race meeting has been licensed in

23 the current year, unless the person having operating

24 control of such race track has given its written consent to

25 such inter-track wagering location licensees, which

26 consent must be filed with the Board at or prior to the

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1 time application is made.

2 (8.2) Inter-track wagering or simulcast wagering shall

3 not be conducted by an inter-track wagering location

4 licensee at any location within 500 feet of an existing

5 church, an ~~or~~ existing elementary or secondary public

6 school, or an existing elementary or secondary private

7 school registered with or recognized by the State Board of

8 Education ~~school~~, nor within 500 feet of the residences of

9 more than 50 registered voters without receiving written

10 permission from a majority of the registered voters at such

11 residences. Such written permission statements shall be

12 filed with the Board. The distance of 500 feet shall be

13 measured to the nearest part of any building used for

14 worship services, education programs, residential

15 purposes, or conducting inter-track wagering by an

16 inter-track wagering location licensee, and not to

17 property boundaries. However, inter-track wagering or

18 simulcast wagering may be conducted at a site within 500

19 feet of a church, school or residences of 50 or more

20 registered voters if such church, school or residences have

21 been erected or established, or such voters have been

22 registered, after the Board issues the original

23 inter-track wagering location license at the site in

24 question. Inter-track wagering location licensees may

25 conduct inter-track wagering and simulcast wagering only

26 in areas that are zoned for commercial or manufacturing

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1 purposes or in areas for which a special use has been

2 approved by the local zoning authority. However, no license

3 to conduct inter-track wagering and simulcast wagering

4 shall be granted by the Board with respect to any

5 inter-track wagering location within the jurisdiction of

6 any local zoning authority which has, by ordinance or by

7 resolution, prohibited the establishment of an inter-track

8 wagering location within its jurisdiction. However,

9 inter-track wagering and simulcast wagering may be

10 conducted at a site if such ordinance or resolution is

11 enacted after the Board licenses the original inter-track

12 wagering location licensee for the site in question.

13 (9) (Blank).

14 (10) An inter-track wagering licensee or an

15 inter-track wagering location licensee may retain, subject

16 to the payment of the privilege taxes and the purses, an

17 amount not to exceed 17% of all money wagered. Each program

18 of racing conducted by each inter-track wagering licensee

19 or inter-track wagering location licensee shall be

20 considered a separate racing day for the purpose of

21 determining the daily handle and computing the privilege

22 tax or pari-mutuel tax on such daily handle as provided in

23 Section 27.

24 (10.1) Except as provided in subsection (g) of Section

25 27 of this Act, inter-track wagering location licensees

26 shall pay 1% of the pari-mutuel handle at each location to

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1 the municipality in which such location is situated and 1%

2 of the pari-mutuel handle at each location to the county in

3 which such location is situated. In the event that an

4 inter-track wagering location licensee is situated in an

5 unincorporated area of a county, such licensee shall pay 2%

6 of the pari-mutuel handle from such location to such

7 county.

8 (10.2) Notwithstanding any other provision of this

9 Act, with respect to inter-track~~intertrack~~ wagering at a

10 race track located in a county that has a population of

11 more than 230,000 and that is bounded by the Mississippi

12 River ("the first race track"), or at a facility operated

13 by an inter-track wagering licensee or inter-track

14 wagering location licensee that derives its license from

15 the organization licensee that operates the first race

16 track, on races conducted at the first race track or on

17 races conducted at another Illinois race track and

18 simultaneously televised to the first race track or to a

19 facility operated by an inter-track wagering licensee or

20 inter-track wagering location licensee that derives its

21 license from the organization licensee that operates the

22 first race track, those moneys shall be allocated as

23 follows:

24 (A) That portion of all moneys wagered on

25 standardbred racing that is required under this Act to

26 be paid to purses shall be paid to purses for

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1 standardbred races.

2 (B) That portion of all moneys wagered on

3 thoroughbred racing that is required under this Act to

4 be paid to purses shall be paid to purses for

5 thoroughbred races.

6 (11) (A) After payment of the privilege or pari-mutuel

7 tax, any other applicable taxes, and the costs and expenses

8 in connection with the gathering, transmission, and

9 dissemination of all data necessary to the conduct of

10 inter-track wagering, the remainder of the monies retained

11 under either Section 26 or Section 26.2 of this Act by the

12 inter-track wagering licensee on inter-track wagering

13 shall be allocated with 50% to be split between the 2

14 participating licensees and 50% to purses, except that an

15 inter-track ~~intertrack~~wagering licensee that derives its

16 license from a track located in a county with a population

17 in excess of 230,000 and that borders the Mississippi River

18 shall not divide any remaining retention with the Illinois

19 organization licensee that provides the race or races, and

20 an inter-track ~~intertrack~~ wagering licensee that accepts

21 wagers on races conducted by an organization licensee that

22 conducts a race meet in a county with a population in

23 excess of 230,000 and that borders the Mississippi River

24 shall not divide any remaining retention with that

25 organization licensee.

26 (B) From the sums permitted to be retained pursuant to

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1 this Act each inter-track wagering location licensee shall

2 pay (i) the privilege or pari-mutuel tax to the State; (ii)

3 4.75% of the pari-mutuel handle oninter-track ~~intertrack~~

4 wagering at such location on races as purses, except that

5 an inter-track ~~intertrack~~ wagering location licensee that

6 derives its license from a track located in a county with a

7 population in excess of 230,000 and that borders the

8 Mississippi River shall retain all purse moneys for its own

9 purse account consistent with distribution set forth in

10 this subsection (h), and inter-track~~intertrack~~ wagering

11 location licensees that accept wagers on races conducted by

12 an organization licensee located in a county with a

13 population in excess of 230,000 and that borders the

14 Mississippi River shall distribute all purse moneys to

15 purses at the operating host track; (iii) until January 1,

16 2000, except as provided in subsection (g) of Section 27 of

17 this Act, 1% of the pari-mutuel handle wagered on

18 inter-track wagering and simulcast wagering at each

19 inter-track wagering location licensee facility to the

20 Horse Racing Tax Allocation Fund, provided that, to the

21 extent the total amount collected and distributed to the

22 Horse Racing Tax Allocation Fund under this subsection (h)

23 during any calendar year exceeds the amount collected and

24 distributed to the Horse Racing Tax Allocation Fund during

25 calendar year 1994, that excess amount shall be

26 redistributed (I) to all inter-track wagering location

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1 licensees, based on each licensee's pro-rata share of the

2 total handle from inter-track wagering and simulcast

3 wagering for all inter-track wagering location licensees

4 during the calendar year in which this provision is

5 applicable; then (II) the amounts redistributed to each

6 inter-track wagering location licensee as described in

7 subpart (I) shall be further redistributed as provided in

8 subparagraph (B) of paragraph (5) of subsection (g) of this

9 Section 26 provided first, that the shares of those

10 amounts, which are to be redistributed to the host track or

11 to purses at the host track under subparagraph (B) of

12 paragraph (5) of subsection (g) of this Section 26 shall be

13 redistributed based on each host track's pro rata share of

14 the total inter-track wagering and simulcast wagering

15 handle at all host tracks during the calendar year in

16 question, and second, that any amounts redistributed as

17 described in part (I) to an inter-track wagering location

18 licensee that accepts wagers on races conducted by an

19 organization licensee that conducts a race meet in a county

20 with a population in excess of 230,000 and that borders the

21 Mississippi River shall be further redistributed as

22 provided in subparagraphs (D) and (E) of paragraph (7) of

23 subsection (g) of this Section 26, with the portion of that

24 further redistribution allocated to purses at that

25 organization licensee to be divided between standardbred

26 purses and thoroughbred purses based on the amounts

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1 otherwise allocated to purses at that organization

2 licensee during the calendar year in question; and (iv) 8%

3 of the pari-mutuel handle on inter-track wagering wagered

4 at such location to satisfy all costs and expenses of

5 conducting its wagering. The remainder of the monies

6 retained by the inter-track wagering location licensee

7 shall be allocated 40% to the location licensee and 60% to

8 the organization licensee which provides the Illinois

9 races to the location, except that an inter-track

10 ~~intertrack~~wagering location licensee that derives its

11 license from a track located in a county with a population

12 in excess of 230,000 and that borders the Mississippi River

13 shall not divide any remaining retention with the

14 organization licensee that provides the race or races and

15 an inter-track ~~intertrack~~ wagering location licensee that

16 accepts wagers on races conducted by an organization

17 licensee that conducts a race meet in a county with a

18 population in excess of 230,000 and that borders the

19 Mississippi River shall not divide any remaining retention

20 with the organization licensee. Notwithstanding the

21 provisions of clauses (ii) and (iv) of this paragraph, in

22 the case of the additional inter-track wagering location

23 licenses authorized under paragraph (1) of this subsection

24 (h) by Public Act 87-110 ~~this amendatory Act of 1991~~, those

25 licensees shall pay the following amounts as purses: during

26 the first 12 months the licensee is in operation, 5.25% of

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1 the pari-mutuel handle wagered at the location on races;

2 during the second 12 months, 5.25%; during the third 12

3 months, 5.75%; during the fourth 12 months, 6.25%; and

4 during the fifth 12 months and thereafter, 6.75%. The

5 following amounts shall be retained by the licensee to

6 satisfy all costs and expenses of conducting its wagering:

7 during the first 12 months the licensee is in operation,

8 8.25% of the pari-mutuel handle wagered at the location;

9 during the second 12 months, 8.25%; during the third 12

10 months, 7.75%; during the fourth 12 months, 7.25%; and

11 during the fifth 12 months and thereafter, 6.75%. For

12 additional inter-track ~~intertrack~~ wagering location

13 licensees authorized under Public Act 89-16 ~~this~~

14 ~~amendatory Act of 1995~~, purses for the first 12 months the

15 licensee is in operation shall be 5.75% of the pari-mutuel

16 wagered at the location, purses for the second 12 months

17 the licensee is in operation shall be 6.25%, and purses

18 thereafter shall be 6.75%. For additional inter-track

19 ~~intertrack~~location licensees authorized underPublic Act

20 89-16~~this amendatory Act of 1995~~, the licensee shall be

21 allowed to retain to satisfy all costs and expenses: 7.75%

22 of the pari-mutuel handle wagered at the location during

23 its first 12 months of operation, 7.25% during its second

24 12 months of operation, and 6.75% thereafter.

25 (C) There is hereby created the Horse Racing Tax

26 Allocation Fund which shall remain in existence until

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1 December 31, 1999. Moneys remaining in the Fund after

2 December 31, 1999 shall be paid into the General Revenue

3 Fund. Until January 1, 2000, all monies paid into the Horse

4 Racing Tax Allocation Fund pursuant to this paragraph (11)

5 by inter-track wagering location licensees located in park

6 districts of 500,000 population or less, or in a

7 municipality that is not included within any park district

8 but is included within a conservation district and is the

9 county seat of a county that (i) is contiguous to the state

10 of Indiana and (ii) has a 1990 population of 88,257

11 according to the United States Bureau of the Census, and

12 operating on May 1, 1994 shall be allocated by

13 appropriation as follows:

14 Two-sevenths to the Department of Agriculture.

15 Fifty percent of this two-sevenths shall be used to

16 promote the Illinois horse racing and breeding

17 industry, and shall be distributed by the Department of

18 Agriculture upon the advice of a 9-member committee

19 appointed by the Governor consisting of the following

20 members: the Director of Agriculture, who shall serve

21 as chairman; 2 representatives of organization

22 licensees conducting thoroughbred race meetings in

23 this State, recommended by those licensees; 2

24 representatives of organization licensees conducting

25 standardbred race meetings in this State, recommended

26 by those licensees; a representative of the Illinois

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1 Thoroughbred Breeders and Owners Foundation,

2 recommended by that Foundation; a representative of

3 the Illinois Standardbred Owners and Breeders

4 Association, recommended by that Association; a

5 representative of the Horsemen's Benevolent and

6 Protective Association or any successor organization

7 thereto established in Illinois comprised of the

8 largest number of owners and trainers, recommended by

9 that Association or that successor organization; and a

10 representative of the Illinois Harness Horsemen's

11 Association, recommended by that Association.

12 Committee members shall serve for terms of 2 years,

13 commencing January 1 of each even-numbered year. If a

14 representative of any of the above-named entities has

15 not been recommended by January 1 of any even-numbered

16 year, the Governor shall appoint a committee member to

17 fill that position. Committee members shall receive no

18 compensation for their services as members but shall be

19 reimbursed for all actual and necessary expenses and

20 disbursements incurred in the performance of their

21 official duties. The remaining 50% of this

22 two-sevenths shall be distributed to county fairs for

23 premiums and rehabilitation as set forth in the

24 Agricultural Fair Act;

25 Four-sevenths to park districts or municipalities

26 that do not have a park district of 500,000 population

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1 or less for museum purposes (if an inter-track wagering

2 location licensee is located in such a park district)

3 or to conservation districts for museum purposes (if an

4 inter-track wagering location licensee is located in a

5 municipality that is not included within any park

6 district but is included within a conservation

7 district and is the county seat of a county that (i) is

8 contiguous to the state of Indiana and (ii) has a 1990

9 population of 88,257 according to the United States

10 Bureau of the Census, except that if the conservation

11 district does not maintain a museum, the monies shall

12 be allocated equally between the county and the

13 municipality in which the inter-track wagering

14 location licensee is located for general purposes) or

15 to a municipal recreation board for park purposes (if

16 an inter-track wagering location licensee is located

17 in a municipality that is not included within any park

18 district and park maintenance is the function of the

19 municipal recreation board and the municipality has a

20 1990 population of 9,302 according to the United States

21 Bureau of the Census); provided that the monies are

22 distributed to each park district or conservation

23 district or municipality that does not have a park

24 district in an amount equal to four-sevenths of the

25 amount collected by each inter-track wagering location

26 licensee within the park district or conservation

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1 district or municipality for the Fund. Monies that were

2 paid into the Horse Racing Tax Allocation Fund before

3 August 9, 1991 (the effective date ofPublic Act

4 87-110) ~~this amendatory Act of 1991~~ by an inter-track

5 wagering location licensee located in a municipality

6 that is not included within any park district but is

7 included within a conservation district as provided in

8 this paragraph shall, as soon as practicable after

9 August 9, 1991 (the effective date of Public Act

10 87-110) ~~this amendatory Act of 1991~~, be allocated and

11 paid to that conservation district as provided in this

12 paragraph. Any park district or municipality not

13 maintaining a museum may deposit the monies in the

14 corporate fund of the park district or municipality

15 where the inter-track wagering location is located, to

16 be used for general purposes; and

17 One-seventh to the Agricultural Premium Fund to be

18 used for distribution to agricultural home economics

19 extension councils in accordance with "An Act in

20 relation to additional support and finances for the

21 Agricultural and Home Economic Extension Councils in

22 the several counties of this State and making an

23 appropriation therefor", approved July 24, 1967.

24 Until January 1, 2000, all other monies paid into the

25 Horse Racing Tax Allocation Fund pursuant to this paragraph

26 (11) shall be allocated by appropriation as follows:

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1 Two-sevenths to the Department of Agriculture.

2 Fifty percent of this two-sevenths shall be used to

3 promote the Illinois horse racing and breeding

4 industry, and shall be distributed by the Department of

5 Agriculture upon the advice of a 9-member committee

6 appointed by the Governor consisting of the following

7 members: the Director of Agriculture, who shall serve

8 as chairman; 2 representatives of organization

9 licensees conducting thoroughbred race meetings in

10 this State, recommended by those licensees; 2

11 representatives of organization licensees conducting

12 standardbred race meetings in this State, recommended

13 by those licensees; a representative of the Illinois

14 Thoroughbred Breeders and Owners Foundation,

15 recommended by that Foundation; a representative of

16 the Illinois Standardbred Owners and Breeders

17 Association, recommended by that Association; a

18 representative of the Horsemen's Benevolent and

19 Protective Association or any successor organization

20 thereto established in Illinois comprised of the

21 largest number of owners and trainers, recommended by

22 that Association or that successor organization; and a

23 representative of the Illinois Harness Horsemen's

24 Association, recommended by that Association.

25 Committee members shall serve for terms of 2 years,

26 commencing January 1 of each even-numbered year. If a

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1 representative of any of the above-named entities has

2 not been recommended by January 1 of any even-numbered

3 year, the Governor shall appoint a committee member to

4 fill that position. Committee members shall receive no

5 compensation for their services as members but shall be

6 reimbursed for all actual and necessary expenses and

7 disbursements incurred in the performance of their

8 official duties. The remaining 50% of this

9 two-sevenths shall be distributed to county fairs for

10 premiums and rehabilitation as set forth in the

11 Agricultural Fair Act;

12 Four-sevenths to museums and aquariums located in

13 park districts of over 500,000 population; provided

14 that the monies are distributed in accordance with the

15 previous year's distribution of the maintenance tax

16 for such museums and aquariums as provided in Section 2

17 of the Park District Aquarium and Museum Act; and

18 One-seventh to the Agricultural Premium Fund to be

19 used for distribution to agricultural home economics

20 extension councils in accordance with "An Act in

21 relation to additional support and finances for the

22 Agricultural and Home Economic Extension Councils in

23 the several counties of this State and making an

24 appropriation therefor", approved July 24, 1967. This

25 subparagraph (C) shall be inoperative and of no force

26 and effect on and after January 1, 2000.

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1 (D) Except as provided in paragraph (11) of this

2 subsection (h), with respect to purse allocation from

3 inter-track ~~intertrack~~wagering, the monies so

4 retained shall be divided as follows:

5 (i) If the inter-track wagering licensee,

6 except an inter-track ~~intertrack~~wagering licensee

7 that derives its license from an organization

8 licensee located in a county with a population in

9 excess of 230,000 and bounded by the Mississippi

10 River, is not conducting its own race meeting

11 during the same dates, then the entire purse

12 allocation shall be to purses at the track where

13 the races wagered on are being conducted.

14 (ii) If the inter-track wagering licensee,

15 except an inter-track ~~intertrack~~wagering licensee

16 that derives its license from an organization

17 licensee located in a county with a population in

18 excess of 230,000 and bounded by the Mississippi

19 River, is also conducting its own race meeting

20 during the same dates, then the purse allocation

21 shall be as follows: 50% to purses at the track

22 where the races wagered on are being conducted; 50%

23 to purses at the track where the inter-track

24 wagering licensee is accepting such wagers.

25 (iii) If the inter-track wagering is being

26 conducted by an inter-track wagering location

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1 licensee, except an inter-track ~~intertrack~~

2 wagering location licensee that derives its

3 license from an organization licensee located in a

4 county with a population in excess of 230,000 and

5 bounded by the Mississippi River, the entire purse

6 allocation for Illinois races shall be to purses at

7 the track where the race meeting being wagered on

8 is being held.

9 (12) The Board shall have all powers necessary and

10 proper to fully supervise and control the conduct of

11 inter-track wagering and simulcast wagering by inter-track

12 wagering licensees and inter-track wagering location

13 licensees, including, but not limited to the following:

14 (A) The Board is vested with power to promulgate

15 reasonable rules and regulations for the purpose of

16 administering the conduct of this wagering and to

17 prescribe reasonable rules, regulations and conditions

18 under which such wagering shall be held and conducted.

19 Such rules and regulations are to provide for the

20 prevention of practices detrimental to the public

21 interest and for the best interests of said wagering

22 and to impose penalties for violations thereof.

23 (B) The Board, and any person or persons to whom it

24 delegates this power, is vested with the power to enter

25 the facilities of any licensee to determine whether

26 there has been compliance with the provisions of this

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1 Act and the rules and regulations relating to the

2 conduct of such wagering.

3 (C) The Board, and any person or persons to whom it

4 delegates this power, may eject or exclude from any

5 licensee's facilities, any person whose conduct or

6 reputation is such that his presence on such premises

7 may, in the opinion of the Board, call into the

8 question the honesty and integrity of, or interfere

9 with the orderly conduct of such wagering; provided,

10 however, that no person shall be excluded or ejected

11 from such premises solely on the grounds of race,

12 color, creed, national origin, ancestry, or sex.

13 (D) (Blank).

14 (E) The Board is vested with the power to appoint

15 delegates to execute any of the powers granted to it

16 under this Section for the purpose of administering

17 this wagering and any rules and regulations

18 promulgated in accordance with this Act.

19 (F) The Board shall name and appoint a State

20 director of this wagering who shall be a representative

21 of the Board and whose duty it shall be to supervise

22 the conduct of inter-track wagering as may be provided

23 for by the rules and regulations of the Board; such

24 rules and regulation shall specify the method of

25 appointment and the Director's powers, authority and

26 duties.

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1 (G) The Board is vested with the power to impose

2 civil penalties of up to $5,000 against individuals and

3 up to $10,000 against licensees for each violation of

4 any provision of this Act relating to the conduct of

5 this wagering, any rules adopted by the Board, any

6 order of the Board or any other action which in the

7 Board's discretion, is a detriment or impediment to

8 such wagering.

9 (13) The Department of Agriculture may enter into

10 agreements with licensees authorizing such licensees to

11 conduct inter-track wagering on races to be held at the

12 licensed race meetings conducted by the Department of

13 Agriculture. Such agreement shall specify the races of the

14 Department of Agriculture's licensed race meeting upon

15 which the licensees will conduct wagering. In the event

16 that a licensee conducts inter-track pari-mutuel wagering

17 on races from the Illinois State Fair or DuQuoin State Fair

18 which are in addition to the licensee's previously approved

19 racing program, those races shall be considered a separate

20 racing day for the purpose of determining the daily handle

21 and computing the privilege or pari-mutuel tax on that

22 daily handle as provided in Sections 27 and 27.1. Such

23 agreements shall be approved by the Board before such

24 wagering may be conducted. In determining whether to grant

25 approval, the Board shall give due consideration to the

26 best interests of the public and of horse racing. The

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1 provisions of paragraphs (1), (8), (8.1), and (8.2) of

2 subsection (h) of this Section which are not specified in

3 this paragraph (13) shall not apply to licensed race

4 meetings conducted by the Department of Agriculture at the

5 Illinois State Fair in Sangamon County or the DuQuoin State

6 Fair in Perry County, or to any wagering conducted on those

7 race meetings.

8 (14) An inter-track wagering location license

9 authorized by the Board in 2016 that is owned and operated

10 by a race track in Rock Island County shall be transferred

11 to a commonly owned race track in Cook County on August 12,

12 2016 (the effective date of Public Act 99-757) ~~this~~

13 ~~amendatory Act of the 99th General Assembly~~. The licensee

14 shall retain its status in relation to purse distribution

15 under paragraph (11) of this subsection (h) following the

16 transfer to the new entity. The pari-mutuel tax credit

17 under Section 32.1 shall not be applied toward any

18 pari-mutuel tax obligation of the inter-track wagering

19 location licensee of the license that is transferred under

20 this paragraph (14).

21 (i) Notwithstanding the other provisions of this Act, the

22 conduct of wagering at wagering facilities is authorized on all

23 days, except as limited by subsection (b) of Section 19 of this

24 Act.

25 (Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968,

26 eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;

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1 revised 9-14-16.)

2 (230 ILCS 5/26.8)

3 Sec. 26.8. Beginning on February 1, 2014 ~~and through~~

4 ~~December 31, 2018~~, each wagering licensee may impose a

5 surcharge of up to 0.5% on winning wagers and winnings from

6 wagers. The surcharge shall be deducted from winnings prior to

7 payout. All amounts collected from the imposition of this

8 surcharge shall be evenly distributed to the organization

9 licensee and the purse account of the organization licensee

10 with which the licensee is affiliated. The amounts distributed

11 under this Section shall be in addition to the amounts paid

12 pursuant to paragraph (10) of subsection (h) of Section 26,

13 Section 26.3, Section 26.4, Section 26.5, and Section 26.7.

14 (Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)

15 (230 ILCS 5/26.9)

16 Sec. 26.9. Beginning on February 1, 2014 ~~and through~~

17 ~~December 31, 2018~~, in addition to the surcharge imposed in

18 Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each

19 licensee shall impose a surcharge of 0.2% on winning wagers and

20 winnings from wagers. The surcharge shall be deducted from

21 winnings prior to payout. All amounts collected from the

22 surcharges imposed under this Section shall be remitted to the

23 Board. From amounts collected under this Section, the Board

24 shall deposit an amount not to exceed $100,000 annually into

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1 the Quarter Horse Purse Fund and all remaining amounts into the

2 Horse Racing Fund.

3 (Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)

4 (230 ILCS 5/27) (from Ch. 8, par. 37-27)

5 Sec. 27. (a) In addition to the organization license fee

6 provided by this Act, until January 1, 2000, a graduated

7 privilege tax is hereby imposed for conducting the pari-mutuel

8 system of wagering permitted under this Act. Until January 1,

9 2000, except as provided in subsection (g) of Section 27 of

10 this Act, all of the breakage of each racing day held by any

11 licensee in the State shall be paid to the State. Until January

12 1, 2000, such daily graduated privilege tax shall be paid by

13 the licensee from the amount permitted to be retained under

14 this Act. Until January 1, 2000, each day's graduated privilege

15 tax, breakage, and Horse Racing Tax Allocation funds shall be

16 remitted to the Department of Revenue within 48 hours after the

17 close of the racing day upon which it is assessed or within

18 such other time as the Board prescribes. The privilege tax

19 hereby imposed, until January 1, 2000, shall be a flat tax at

20 the rate of 2% of the daily pari-mutuel handle except as

21 provided in Section 27.1.

22 In addition, every organization licensee, except as

23 provided in Section 27.1 of this Act, which conducts multiple

24 wagering shall pay, until January 1, 2000, as a privilege tax

25 on multiple wagers an amount equal to 1.25% of all moneys

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1 wagered each day on such multiple wagers, plus an additional

2 amount equal to 3.5% of the amount wagered each day on any

3 other multiple wager which involves a single betting interest

4 on 3 or more horses. The licensee shall remit the amount of

5 such taxes to the Department of Revenue within 48 hours after

6 the close of the racing day on which it is assessed or within

7 such other time as the Board prescribes.

8 This subsection (a) shall be inoperative and of no force

9 and effect on and after January 1, 2000.

10 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax

11 at the rate of 1.5% of the daily pari-mutuel handle is imposed

12 at all pari-mutuel wagering facilities and on advance deposit

13 wagering from a location other than a wagering facility, except

14 as otherwise provided for in this subsection (a-5). In addition

15 to the pari-mutuel tax imposed on advance deposit wagering

16 pursuant to this subsection (a-5), beginning on August 24, 2012

17 (the effective date of Public Act 97-1060) ~~and through December~~

18 ~~31, 2018~~, an additional pari-mutuel tax at the rate of 0.25%

19 shall be imposed on advance deposit wagering. Until August 25,

20 2012, the additional 0.25% pari-mutuel tax imposed on advance

21 deposit wagering by Public Act 96-972 shall be deposited into

22 the Quarter Horse Purse Fund, which shall be created as a

23 non-appropriated trust fund administered by the Board for

24 grants to thoroughbred organization licensees for payment of

25 purses for quarter horse races conducted by the organization

26 licensee. Beginning on August 26, 2012, the additional 0.25%

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1 pari-mutuel tax imposed on advance deposit wagering shall be

2 deposited into the Standardbred Purse Fund, which shall be

3 created as a non-appropriated trust fund administered by the

4 Board, for grants to the standardbred organization licensees

5 for payment of purses for standardbred horse races conducted by

6 the organization licensee. Thoroughbred organization licensees

7 may petition the Board to conduct quarter horse racing and

8 receive purse grants from the Quarter Horse Purse Fund. The

9 Board shall have complete discretion in distributing the

10 Quarter Horse Purse Fund to the petitioning organization

11 licensees. Beginning on July 26, 2010 (the effective date of

12 Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of

13 the daily pari-mutuel handle is imposed at a pari-mutuel

14 facility whose license is derived from a track located in a

15 county that borders the Mississippi River and conducted live

16 racing in the previous year. The pari-mutuel tax imposed by

17 this subsection (a-5) shall be remitted to the Department of

18 Revenue within 48 hours after the close of the racing day upon

19 which it is assessed or within such other time as the Board

20 prescribes.

21 (a-10) Beginning on the date when an organization licensee

22 begins conducting electronic gaming pursuant to an electronic

23 gaming license, the following pari-mutuel tax is imposed upon

24 an organization licensee on Illinois races at the licensee's

25 race track:

26 1.5% of the pari-mutuel handle at or below the average

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1 daily pari-mutuel handle for 2011.

2 2% of the pari-mutuel handle above the average daily

3 pari-mutuel handle for 2011 up to 125% of the average daily

4 pari-mutuel handle for 2011.

5 2.5% of the pari-mutuel handle 125% or more above the

6 average daily pari-mutuel handle for 2011 up to 150% of the

7 average daily pari-mutuel handle for 2011.

8 3% of the pari-mutuel handle 150% or more above the

9 average daily pari-mutuel handle for 2011 up to 175% of the

10 average daily pari-mutuel handle for 2011.

11 3.5% of the pari-mutuel handle 175% or more above the

12 average daily pari-mutuel handle for 2011.

13 The pari-mutuel tax imposed by this subsection (a-10) shall

14 be remitted to the Board within 48 hours after the close of the

15 racing day upon which it is assessed or within such other time

16 as the Board prescribes.

17 (b) On or before December 31, 1999, in the event that any

18 organization licensee conducts 2 separate programs of races on

19 any day, each such program shall be considered a separate

20 racing day for purposes of determining the daily handle and

21 computing the privilege tax on such daily handle as provided in

22 subsection (a) of this Section.

23 (c) Licensees shall at all times keep accurate books and

24 records of all monies wagered on each day of a race meeting and

25 of the taxes paid to the Department of Revenue under the

26 provisions of this Section. The Board or its duly authorized

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1 representative or representatives shall at all reasonable

2 times have access to such records for the purpose of examining

3 and checking the same and ascertaining whether the proper

4 amount of taxes is being paid as provided. The Board shall

5 require verified reports and a statement of the total of all

6 monies wagered daily at each wagering facility upon which the

7 taxes are assessed and may prescribe forms upon which such

8 reports and statement shall be made.

9 (d) Before a license is issued or re-issued, the licensee

10 shall post a bond in the sum of $500,000 to the State of

11 Illinois. The bond shall be used to guarantee that the licensee

12 faithfully makes the payments, keeps the books and records and

13 makes reports, and conducts games of chance in conformity with

14 this Act and the rules adopted by the Board. The bond shall not

15 be canceled by a surety on less than 30 days' notice in writing

16 to the Board. If a bond is canceled and the licensee fails to

17 file a new bond with the Board in the required amount on or

18 before the effective date of cancellation, the licensee's

19 license shall be revoked. The total and aggregate liability of

20 the surety on the bond is limited to the amount specified in

21 the bond. ~~Any licensee failing or refusing to pay the amount of~~

22 ~~any tax due under this Section shall be guilty of a business~~

23 ~~offense and upon conviction shall be fined not more than $5,000~~

24 ~~in addition to the amount found due as tax under this Section.~~

25 ~~Each day's violation shall constitute a separate offense. All~~

26 ~~fines paid into Court by a licensee hereunder shall be~~

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1 ~~transmitted and paid over by the Clerk of the Court to the~~

2 ~~Board.~~

3 (e) No other license fee, privilege tax, excise tax, or

4 racing fee, except as provided in this Act, shall be assessed

5 or collected from any such licensee by the State.

6 (f) No other license fee, privilege tax, excise tax or

7 racing fee shall be assessed or collected from any such

8 licensee by units of local government except as provided in

9 paragraph 10.1 of subsection (h) and subsection (f) of Section

10 26 of this Act. However, any municipality that has a Board

11 licensed horse race meeting at a race track wholly within its

12 corporate boundaries or a township that has a Board licensed

13 horse race meeting at a race track wholly within the

14 unincorporated area of the township may charge a local

15 amusement tax not to exceed 10� per admission to such horse

16 race meeting by the enactment of an ordinance. However, any

17 municipality or county that has a Board licensed inter-track

18 wagering location facility wholly within its corporate

19 boundaries may each impose an admission fee not to exceed $1.00

20 per admission to such inter-track wagering location facility,

21 so that a total of not more than $2.00 per admission may be

22 imposed. Except as provided in subparagraph (g) of Section 27

23 of this Act, the inter-track wagering location licensee shall

24 collect any and all such fees and~~within 48 hours~~ remit the

25 fees to the Board as the Board prescribes, which shall,

26 pursuant to rule, cause the fees to be distributed to the

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1 county or municipality.

2 (g) Notwithstanding any provision in this Act to the

3 contrary, if in any calendar year the total taxes and feesfrom

4 wagering on live racing and from inter-track wagering required

5 to be collected from licensees and distributed under this Act

6 to all State and local governmental authorities exceeds the

7 amount of such taxes and fees distributed to each State and

8 local governmental authority to which each State and local

9 governmental authority was entitled under this Act for calendar

10 year 1994, then the first $11 million of that excess amount

11 shall be allocated at the earliest possible date for

12 distribution as purse money for the succeeding calendar year.

13 Upon reaching the 1994 level, and until the excess amount of

14 taxes and fees exceeds $11 million, the Board shall direct all

15 licensees to cease paying the subject taxes and fees and the

16 Board shall direct all licensees to allocate any such excess

17 amount for purses as follows:

18 (i) the excess amount shall be initially divided

19 between thoroughbred and standardbred purses based on the

20 thoroughbred's and standardbred's respective percentages

21 of total Illinois live wagering in calendar year 1994;

22 (ii) each thoroughbred and standardbred organization

23 licensee issued an organization licensee in that

24 succeeding allocation year shall be allocated an amount

25 equal to the product of its percentage of total Illinois

26 live thoroughbred or standardbred wagering in calendar

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1 year 1994 (the total to be determined based on the sum of

2 1994 on-track wagering for all organization licensees

3 issued organization licenses in both the allocation year

4 and the preceding year) multiplied by the total amount

5 allocated for standardbred or thoroughbred purses,

6 provided that the first $1,500,000 of the amount allocated

7 to standardbred purses under item (i) shall be allocated to

8 the Department of Agriculture to be expended with the

9 assistance and advice of the Illinois Standardbred

10 Breeders Funds Advisory Board for the purposes listed in

11 subsection (g) of Section 31 of this Act, before the amount

12 allocated to standardbred purses under item (i) is

13 allocated to standardbred organization licensees in the

14 succeeding allocation year.

15 To the extent the excess amount of taxes and fees to be

16 collected and distributed to State and local governmental

17 authorities exceeds $11 million, that excess amount shall be

18 collected and distributed to State and local authorities as

19 provided for under this Act.

20 (Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,

21 eff. 8-12-16.)

22 (230 ILCS 5/30) (from Ch. 8, par. 37-30)

23 Sec. 30. (a) The General Assembly declares that it is the

24 policy of this State to encourage the breeding of thoroughbred

25 horses in this State and the ownership of such horses by

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1 residents of this State in order to provide for: sufficient

2 numbers of high quality thoroughbred horses to participate in

3 thoroughbred racing meetings in this State, and to establish

4 and preserve the agricultural and commercial benefits of such

5 breeding and racing industries to the State of Illinois. It is

6 the intent of the General Assembly to further this policy by

7 the provisions of this Act.

8 (b) Each organization licensee conducting a thoroughbred

9 racing meeting pursuant to this Act shall provide at least two

10 races each day limited to Illinois conceived and foaled horses

11 or Illinois foaled horses or both. A minimum of 6 races shall

12 be conducted each week limited to Illinois conceived and foaled

13 or Illinois foaled horses or both. No horses shall be permitted

14 to start in such races unless duly registered under the rules

15 of the Department of Agriculture.

16 (c) Conditions of races under subsection (b) shall be

17 commensurate with past performance, quality, and class of

18 Illinois conceived and foaled and Illinois foaled horses

19 available. If, however, sufficient competition cannot be had

20 among horses of that class on any day, the races may, with

21 consent of the Board, be eliminated for that day and substitute

22 races provided.

23 (d) There is hereby created a special fund of the State

24 Treasury to be known as the Illinois Thoroughbred Breeders

25 Fund.

26 Beginning on the effective date of this amendatory Act of

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1 the 100th General Assembly, the Illinois Thoroughbred Breeders

2 Fund shall become a non-appropriated trust fund held separately

3 from State moneys. Expenditures from this Fund shall no longer

4 be subject to appropriation.

5 Except as provided in subsection (g) of Section 27 of this

6 Act, 8.5% of all the monies received by the State as privilege

7 taxes on Thoroughbred racing meetings shall be paid into the

8 Illinois Thoroughbred Breeders Fund.

9 Notwithstanding any provision of law to the contrary,

10 amounts deposited into the Illinois Thoroughbred Breeders Fund

11 from revenues generated by electronic gaming after the

12 effective date of this amendatory Act of the 100th General

13 Assembly shall be in addition to tax and fee amounts paid under

14 this Section for calendar year 2017 and thereafter.

15 (e) The Illinois Thoroughbred Breeders Fund shall be

16 administered by the Department of Agriculture with the advice

17 and assistance of the Advisory Board created in subsection (f)

18 of this Section.

19 (f) The Illinois Thoroughbred Breeders Fund Advisory Board

20 shall consist of the Director of the Department of Agriculture,

21 who shall serve as Chairman; a member of the Illinois Racing

22 Board, designated by it; 2 representatives of the organization

23 licensees conducting thoroughbred racing meetings, recommended

24 by them; 2 representatives of the Illinois Thoroughbred

25 Breeders and Owners Foundation, recommended by it; one

26 representative ~~and 2 representatives~~ of the Horsemen's

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1 Benevolent Protective Association; and one representative from

2 the Illinois Thoroughbred Horsemen's Association ~~or any~~

3 ~~successor organization established in Illinois comprised of~~

4 ~~the largest number of owners and trainers, recommended by it,~~

5 ~~with one representative of the Horsemen's Benevolent and~~

6 ~~Protective Association to come from its Illinois Division, and~~

7 ~~one from its Chicago Division~~. Advisory Board members shall

8 serve for 2 years commencing January 1 of each odd numbered

9 year. If representatives of the organization licensees

10 conducting thoroughbred racing meetings, the Illinois

11 Thoroughbred Breeders and Owners Foundation,~~and~~ the

12 Horsemen's Benevolent Protection Association, and the Illinois

13 Thoroughbred Horsemen's Associationhave not been recommended

14 by January 1, of each odd numbered year, the Director of the

15 Department of Agriculture shall make an appointment for the

16 organization failing to so recommend a member of the Advisory

17 Board. Advisory Board members shall receive no compensation for

18 their services as members but shall be reimbursed for all

19 actual and necessary expenses and disbursements incurred in the

20 execution of their official duties.

21 (g) ~~No monies shall be expended from the Illinois~~

22 ~~Thoroughbred Breeders Fund except as appropriated by the~~

23 ~~General Assembly.~~ Monies expended~~appropriated~~ from the

24 Illinois Thoroughbred Breeders Fund shall be expended by the

25 Department of Agriculture, with the advice and assistance of

26 the Illinois Thoroughbred Breeders Fund Advisory Board, for the

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1 following purposes only:

2 (1) To provide purse supplements to owners of horses

3 participating in races limited to Illinois conceived and

4 foaled and Illinois foaled horses. Any such purse

5 supplements shall not be included in and shall be paid in

6 addition to any purses, stakes, or breeders' awards offered

7 by each organization licensee as determined by agreement

8 between such organization licensee and an organization

9 representing the horsemen. No monies from the Illinois

10 Thoroughbred Breeders Fund shall be used to provide purse

11 supplements for claiming races in which the minimum

12 claiming price is less than $7,500.

13 (2) To provide stakes and awards to be paid to the

14 owners of the winning horses in certain races limited to

15 Illinois conceived and foaled and Illinois foaled horses

16 designated as stakes races.

17 (2.5) To provide an award to the owner or owners of an

18 Illinois conceived and foaled or Illinois foaled horse that

19 wins a maiden special weight, an allowance, overnight

20 handicap race, or claiming race with claiming price of

21 $10,000 or more providing the race is not restricted to

22 Illinois conceived and foaled or Illinois foaled horses.

23 Awards shall also be provided to the owner or owners of

24 Illinois conceived and foaled and Illinois foaled horses

25 that place second or third in those races. To the extent

26 that additional moneys are required to pay the minimum

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1 additional awards of 40% of the purse the horse earns for

2 placing first, second or third in those races for Illinois

3 foaled horses and of 60% of the purse the horse earns for

4 placing first, second or third in those races for Illinois

5 conceived and foaled horses, those moneys shall be provided

6 from the purse account at the track where earned.

7 (3) To provide stallion awards to the owner or owners

8 of any stallion that is duly registered with the Illinois

9 Thoroughbred Breeders Fund Program~~prior to the effective~~

10 ~~date of this amendatory Act of 1995~~whose duly registered

11 Illinois conceived and foaled offspring wins a race

12 conducted at an Illinois thoroughbred racing meeting other

13 than a claiming race, provided that the stallion stood

14 service within Illinois at the time the offspring was

15 conceived and that the stallion did not stand for service

16 outside of Illinois at any time during the year in which

17 the offspring was conceived. ~~Such award shall not be paid~~

18 ~~to the owner or owners of an Illinois stallion that served~~

19 ~~outside this State at any time during the calendar year in~~

20 ~~which such race was conducted.~~

21 (4) To provide $75,000 annually for purses to be

22 distributed to county fairs that provide for the running of

23 races during each county fair exclusively for the

24 thoroughbreds conceived and foaled in Illinois. The

25 conditions of the races shall be developed by the county

26 fair association and reviewed by the Department with the

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1 advice and assistance of the Illinois Thoroughbred

2 Breeders Fund Advisory Board. There shall be no wagering of

3 any kind on the running of Illinois conceived and foaled

4 races at county fairs.

5 (4.1) To provide purse money for an Illinois stallion

6 stakes program.

7 (5) No less than 90% ~~80%~~ of all monies appropriated

8 from the Illinois Thoroughbred Breeders Fund shall be

9 expended for the purposes in (1), (2), (2.5), (3), (4),

10 (4.1), and (5) as shown above.

11 (6) To provide for educational programs regarding the

12 thoroughbred breeding industry.

13 (7) To provide for research programs concerning the

14 health, development and care of the thoroughbred horse.

15 (8) To provide for a scholarship and training program

16 for students of equine veterinary medicine.

17 (9) To provide for dissemination of public information

18 designed to promote the breeding of thoroughbred horses in

19 Illinois.

20 (10) To provide for all expenses incurred in the

21 administration of the Illinois Thoroughbred Breeders Fund.

22 (h) The Illinois Thoroughbred Breeders Fund is not subject

23 to administrative charges or chargebacks, including, but not

24 limited to, those authorized under Section 8h of the State

25 Finance Act. ~~Whenever the Governor finds that the amount in the~~

26 ~~Illinois Thoroughbred Breeders Fund is more than the total of~~

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1 ~~the outstanding appropriations from such fund, the Governor~~

2 ~~shall notify the State Comptroller and the State Treasurer of~~

3 ~~such fact. The Comptroller and the State Treasurer, upon~~

4 ~~receipt of such notification, shall transfer such excess amount~~

5 ~~from the Illinois Thoroughbred Breeders Fund to the General~~

6 ~~Revenue Fund.~~

7 (i) A sum equal to 13% of the first prize money of every

8 purse won by an Illinois foaled or Illinois conceived and

9 foaled horse in races not limited to Illinois foaled horses or

10 Illinois conceived and foaled horses, or both, shall be paid by

11 the organization licensee conducting the horse race meeting.

12 Such sum shall be paid 50% from the organization licensee's

13 share of the money wagered and 50% from the purse account as

14 follows: 11 1/2% to the breeder of the winning horse and 1 1/2%

15 to the organization representing thoroughbred breeders and

16 owners who representative serves on the Illinois Thoroughbred

17 Breeders Fund Advisory Board for verifying the amounts of

18 breeders' awards earned, ensuring their distribution in

19 accordance with this Act, and servicing and promoting the

20 Illinois thoroughbred horse racing industry. Beginning in the

21 calendar year in which an organization licensee that is

22 eligible to receive payments under paragraph (13) of subsection

23 (g) of Section 26 of this Act begins to receive funds from

24 electronic gaming, a sum equal to 21 1/2% of the first prize

25 money of every purse won by an Illinois foaled or an Illinois

26 conceived and foaled horse in races not limited to an Illinois

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1 conceived and foaled horse, or both, shall be paid 30% from the

2 organization licensee's account and 70% from the purse account

3 as follows: 20% to the breeder of the winning horse and 1 1/2%

4 to the organization representing thoroughbred breeders and

5 owners whose representatives serves on the Illinois

6 Thoroughbred Breeders Fund Advisory Board for verifying the

7 amounts of breeders' awards earned, assuring their

8 distribution in accordance with this Act, and servicing and

9 promoting the Illinois Thoroughbred racing industry. ~~A sum~~

10 ~~equal to 12 1/2% of the first prize money of every purse won by~~

11 ~~an Illinois foaled or an Illinois conceived and foaled horse in~~

12 ~~races not limited to Illinois foaled horses or Illinois~~

13 ~~conceived and foaled horses, or both, shall be paid by the~~

14 ~~organization licensee conducting the horse race meeting. Such~~

15 ~~sum shall be paid from the organization licensee's share of the~~

16 ~~money wagered as follows: 11 1/2% to the breeder of the winning~~

17 ~~horse and 1% to the organization representing thoroughbred~~

18 ~~breeders and owners whose representative serves on the Illinois~~

19 ~~Thoroughbred Breeders Fund Advisory Board for verifying the~~

20 ~~amounts of breeders' awards earned, assuring their~~

21 ~~distribution in accordance with this Act, and servicing and~~

22 ~~promoting the Illinois thoroughbred horse racing industry.~~The

23 organization representing thoroughbred breeders and owners

24 shall cause all expenditures of monies received under this

25 subsection (i) to be audited at least annually by a registered

26 public accountant. The organization shall file copies of each

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1 annual audit with the Racing Board, the Clerk of the House of

2 Representatives and the Secretary of the Senate, and shall make

3 copies of each annual audit available to the public upon

4 request and upon payment of the reasonable cost of photocopying

5 the requested number of copies. Such payments shall not reduce

6 any award to the owner of the horse or reduce the taxes payable

7 under this Act. Upon completion of its racing meet, each

8 organization licensee shall deliver to the organization

9 representing thoroughbred breeders and owners whose

10 representative serves on the Illinois Thoroughbred Breeders

11 Fund Advisory Board a listing of all the Illinois foaled and

12 the Illinois conceived and foaled horses which won breeders'

13 awards and the amount of such breeders' awards under this

14 subsection to verify accuracy of payments and assure proper

15 distribution of breeders' awards in accordance with the

16 provisions of this Act. Such payments shall be delivered by the

17 organization licensee within 30 days of the end of each race

18 meeting.

19 (j) A sum equal to 13% of the first prize money won in

20 every race limited to Illinois foaled horses or Illinois

21 conceived and foaled horses, or both, shall be paid in the

22 following manner by the organization licensee conducting the

23 horse race meeting, 50% from the organization licensee's share

24 of the money wagered and 50% from the purse account as follows:

25 11 1/2% to the breeders of the horses in each such race which

26 are the official first, second, third, and fourth finishers and

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1 1 1/2% to the organization representing thoroughbred breeders

2 and owners whose representatives serves on the Illinois

3 Thoroughbred Breeders Fund Advisory Board for verifying the

4 amounts of breeders' awards earned, ensuring their proper

5 distribution in accordance with this Act, and servicing and

6 promoting the Illinois horse racing industry. Beginning in the

7 calendar year in which an organization licensee that is

8 eligible to receive payments under paragraph (13) of subsection

9 (g) of Section 26 of this Act begins to receive funds from

10 electronic gaming, a sum of 21 1/2% of every purse in a race

11 limited to Illinois foaled horses or Illinois conceived and

12 foaled horses, or both, shall be paid by the organization

13 licensee conducting the horse race meeting. Such sum shall be

14 paid 30% from the organization licensee's account and 70% from

15 the purse account as follows: 20% to the breeders of the horses

16 in each such race who are official first, second, third and

17 fourth finishers and 1 1/2% to the organization representing

18 thoroughbred breeders and owners whose representatives serve

19 on the Illinois Thoroughbred Breeders Fund Advisory Board for

20 verifying the amounts of breeders' awards earned, ensuring

21 their proper distribution in accordance with this Act, and

22 servicing and promoting the Illinois thoroughbred horse racing

23 industry. The organization representing thoroughbred breeders

24 and owners shall cause all expenditures of moneys received

25 under this subsection (j) to be audited at least annually by a

26 registered public accountant. The organization shall file

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1 copies of each annual audit with the Racing Board, the Clerk of

2 the House of Representatives and the Secretary of the Senate,

3 and shall make copies of each annual audit available to the

4 public upon request and upon payment of the reasonable cost of

5 photocopying the requested number of copies. ~~A sum equal to 12~~

6 ~~1/2% of the first prize money won in each race limited to~~

7 ~~Illinois foaled horses or Illinois conceived and foaled horses,~~

8 ~~or both, shall be paid in the following manner by the~~

9 ~~organization licensee conducting the horse race meeting, from~~

10 ~~the organization licensee's share of the money wagered: 11 1/2%~~

11 ~~to the breeders of the horses in each such race which are the~~

12 ~~official first, second, third and fourth finishers and 1% to~~

13 ~~the organization representing thoroughbred breeders and owners~~

14 ~~whose representative serves on the Illinois Thoroughbred~~

15 ~~Breeders Fund Advisory Board for verifying the amounts of~~

16 ~~breeders' awards earned, assuring their proper distribution in~~

17 ~~accordance with this Act, and servicing and promoting the~~

18 ~~Illinois thoroughbred horse racing industry. The organization~~

19 ~~representing thoroughbred breeders and owners shall cause all~~

20 ~~expenditures of monies received under this subsection (j) to be~~

21 ~~audited at least annually by a registered public accountant.~~

22 ~~The organization shall file copies of each annual audit with~~

23 ~~the Racing Board, the Clerk of the House of Representatives and~~

24 ~~the Secretary of the Senate, and shall make copies of each~~

25 ~~annual audit available to the public upon request and upon~~

26 ~~payment of the reasonable cost of photocopying the requested~~

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1 ~~number of copies.~~

2 The amounts ~~11 1/2%~~ paid to the breeders in accordance with

3 this subsection shall be distributed as follows:

4 (1) 60% of such sum shall be paid to the breeder of the

5 horse which finishes in the official first position;

6 (2) 20% of such sum shall be paid to the breeder of the

7 horse which finishes in the official second position;

8 (3) 15% of such sum shall be paid to the breeder of the

9 horse which finishes in the official third position; and

10 (4) 5% of such sum shall be paid to the breeder of the

11 horse which finishes in the official fourth position.

12 Such payments shall not reduce any award to the owners of a

13 horse or reduce the taxes payable under this Act. Upon

14 completion of its racing meet, each organization licensee shall

15 deliver to the organization representing thoroughbred breeders

16 and owners whose representative serves on the Illinois

17 Thoroughbred Breeders Fund Advisory Board a listing of all the

18 Illinois foaled and the Illinois conceived and foaled horses

19 which won breeders' awards and the amount of such breeders'

20 awards in accordance with the provisions of this Act. Such

21 payments shall be delivered by the organization licensee within

22 30 days of the end of each race meeting.

23 (k) The term "breeder", as used herein, means the owner of

24 the mare at the time the foal is dropped. An "Illinois foaled

25 horse" is a foal dropped by a mare which enters this State on

26 or before December 1, in the year in which the horse is bred,

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1 provided the mare remains continuously in this State until its

2 foal is born. An "Illinois foaled horse" also means a foal born

3 of a mare in the same year as the mare enters this State on or

4 before March 1, and remains in this State at least 30 days

5 after foaling, is bred back during the season of the foaling to

6 an Illinois Registered Stallion (unless a veterinarian

7 certifies that the mare should not be bred for health reasons),

8 and is not bred to a stallion standing in any other state

9 during the season of foaling. An "Illinois foaled horse" also

10 means a foal born in Illinois of a mare purchased at public

11 auction subsequent to the mare entering this Stateon or before

12 March 1 ~~prior to February 1~~of the foaling year providing the

13 mare is owned solely by one or more Illinois residents or an

14 Illinois entity that is entirely owned by one or more Illinois

15 residents.

16 (l) The Department of Agriculture shall, by rule, with the

17 advice and assistance of the Illinois Thoroughbred Breeders

18 Fund Advisory Board:

19 (1) Qualify stallions for Illinois breeding; such

20 stallions to stand for service within the State of Illinois

21 at the time of a foal's conception. Such stallion must not

22 stand for service at any place outside the State of

23 Illinois during the calendar year in which the foal is

24 conceived. The Department of Agriculture may assess and

25 collect an application fee of up to $500 ~~fees~~for the

26 registration of Illinois-eligible stallions. All fees

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1 collected are to be held in trust accounts for the purposes

2 set forth in this Act and in accordance with Section 205-15

3 of the Department of Agriculture Law ~~paid into the Illinois~~

4 ~~Thoroughbred Breeders Fund~~.

5 (2) Provide for the registration of Illinois conceived

6 and foaled horses and Illinois foaled horses. No such horse

7 shall compete in the races limited to Illinois conceived

8 and foaled horses or Illinois foaled horses or both unless

9 registered with the Department of Agriculture. The

10 Department of Agriculture may prescribe such forms as are

11 necessary to determine the eligibility of such horses. The

12 Department of Agriculture may assess and collect

13 application fees for the registration of Illinois-eligible

14 foals. All fees collected are to be held in trust accounts

15 for the purposes set forth in this Act and in accordance

16 with Section 205-15 of the Department of Agriculture Law

17 ~~paid into the Illinois Thoroughbred Breeders Fund~~. No

18 person shall knowingly prepare or cause preparation of an

19 application for registration of such foals containing

20 false information.

21 (m) The Department of Agriculture, with the advice and

22 assistance of the Illinois Thoroughbred Breeders Fund Advisory

23 Board, shall provide that certain races limited to Illinois

24 conceived and foaled and Illinois foaled horses be stakes races

25 and determine the total amount of stakes and awards to be paid

26 to the owners of the winning horses in such races.

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1 In determining the stakes races and the amount of awards

2 for such races, the Department of Agriculture shall consider

3 factors, including but not limited to, the amount of money

4 appropriated for the Illinois Thoroughbred Breeders Fund

5 program, organization licensees' contributions, availability

6 of stakes caliber horses as demonstrated by past performances,

7 whether the race can be coordinated into the proposed racing

8 dates within organization licensees' racing dates, opportunity

9 for colts and fillies and various age groups to race, public

10 wagering on such races, and the previous racing schedule.

11 (n) The Board and the organizational licensee shall notify

12 the Department of the conditions and minimum purses for races

13 limited to Illinois conceived and foaled and Illinois foaled

14 horses conducted for each organizational licensee conducting a

15 thoroughbred racing meeting. The Department of Agriculture

16 with the advice and assistance of the Illinois Thoroughbred

17 Breeders Fund Advisory Board may allocate monies for purse

18 supplements for such races. In determining whether to allocate

19 money and the amount, the Department of Agriculture shall

20 consider factors, including but not limited to, the amount of

21 money appropriated for the Illinois Thoroughbred Breeders Fund

22 program, the number of races that may occur, and the

23 organizational licensee's purse structure.

24 (o) (Blank).

25 (Source: P.A. 98-692, eff. 7-1-14.)

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1 (230 ILCS 5/30.5)

2 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.

3 (a) The General Assembly declares that it is the policy of

4 this State to encourage the breeding of racing quarter horses

5 in this State and the ownership of such horses by residents of

6 this State in order to provide for sufficient numbers of high

7 quality racing quarter horses in this State and to establish

8 and preserve the agricultural and commercial benefits of such

9 breeding and racing industries to the State of Illinois. It is

10 the intent of the General Assembly to further this policy by

11 the provisions of this Act.

12 (b) There is hereby created non-appropriated trust ~~a~~

13 ~~special~~ fund ~~in the State Treasury~~to be known as the Illinois

14 Racing Quarter Horse Breeders Fund, which is held separately

15 from State moneys. Except as provided in subsection (g) of

16 Section 27 of this Act, 8.5% of all the moneys received by the

17 State as pari-mutuel taxes on quarter horse racing shall be

18 paid into the Illinois Racing Quarter Horse Breeders Fund.The

19 Illinois Racing Quarter Horse Breeders Fund shall not be

20 subject to administrative charges or chargebacks, including,

21 but not limited to, those authorized under Section 8h of the

22 State Finance Act.

23 (c) The Illinois Racing Quarter Horse Breeders Fund shall

24 be administered by the Department of Agriculture with the

25 advice and assistance of the Advisory Board created in

26 subsection (d) of this Section.

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1 (d) The Illinois Racing Quarter Horse Breeders Fund

2 Advisory Board shall consist of the Director of the Department

3 of Agriculture, who shall serve as Chairman; a member of the

4 Illinois Racing Board, designated by it; one representative of

5 the organization licensees conducting pari-mutuel quarter

6 horse racing meetings, recommended by them; 2 representatives

7 of the Illinois Running Quarter Horse Association, recommended

8 by it; and the Superintendent of Fairs and Promotions from the

9 Department of Agriculture. Advisory Board members shall serve

10 for 2 years commencing January 1 of each odd numbered year. If

11 representatives have not been recommended by January 1 of each

12 odd numbered year, the Director of the Department of

13 Agriculture may make an appointment for the organization

14 failing to so recommend a member of the Advisory Board.

15 Advisory Board members shall receive no compensation for their

16 services as members but may be reimbursed for all actual and

17 necessary expenses and disbursements incurred in the execution

18 of their official duties.

19 (e) Moneys in ~~No moneys shall be expended from the Illinois~~

20 ~~Racing Quarter Horse Breeders Fund except as appropriated by~~

21 ~~the General Assembly. Moneys appropriated from~~ the Illinois

22 Racing Quarter Horse Breeders Fund shall be expended by the

23 Department of Agriculture, with the advice and assistance of

24 the Illinois Racing Quarter Horse Breeders Fund Advisory Board,

25 for the following purposes only:

26 (1) To provide stakes and awards to be paid to the

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1 owners of the winning horses in certain races. This

2 provision is limited to Illinois conceived and foaled

3 horses.

4 (2) To provide an award to the owner or owners of an

5 Illinois conceived and foaled horse that wins a race when

6 pari-mutuel wagering is conducted; providing the race is

7 not restricted to Illinois conceived and foaled horses.

8 (3) To provide purse money for an Illinois stallion

9 stakes program.

10 (4) To provide for purses to be distributed for the

11 running of races during the Illinois State Fair and the

12 DuQuoin State Fair exclusively for quarter horses

13 conceived and foaled in Illinois.

14 (5) To provide for purses to be distributed for the

15 running of races at Illinois county fairs exclusively for

16 quarter horses conceived and foaled in Illinois.

17 (6) To provide for purses to be distributed for running

18 races exclusively for quarter horses conceived and foaled

19 in Illinois at locations in Illinois determined by the

20 Department of Agriculture with advice and consent of the

21 Illinois Racing Quarter Horse Breeders Fund Advisory

22 Board.

23 (7) No less than 90% of all moneys appropriated from

24 the Illinois Racing Quarter Horse Breeders Fund shall be

25 expended for the purposes in items (1), (2), (3), (4), and

26 (5) of this subsection (e).

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1 (8) To provide for research programs concerning the

2 health, development, and care of racing quarter horses.

3 (9) To provide for dissemination of public information

4 designed to promote the breeding of racing quarter horses

5 in Illinois.

6 (10) To provide for expenses incurred in the

7 administration of the Illinois Racing Quarter Horse

8 Breeders Fund.

9 (f) The Department of Agriculture shall, by rule, with the

10 advice and assistance of the Illinois Racing Quarter Horse

11 Breeders Fund Advisory Board:

12 (1) Qualify stallions for Illinois breeding; such

13 stallions to stand for service within the State of

14 Illinois, at the time of a foal's conception. Such stallion

15 must not stand for service at any place outside the State

16 of Illinois during the calendar year in which the foal is

17 conceived. The Department of Agriculture may assess and

18 collect application fees for the registration of

19 Illinois-eligible stallions. All fees collected are to be

20 paid into the Illinois Racing Quarter Horse Breeders Fund.

21 (2) Provide for the registration of Illinois conceived

22 and foaled horses. No such horse shall compete in the races

23 limited to Illinois conceived and foaled horses unless it

24 is registered with the Department of Agriculture. The

25 Department of Agriculture may prescribe such forms as are

26 necessary to determine the eligibility of such horses. The

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1 Department of Agriculture may assess and collect

2 application fees for the registration of Illinois-eligible

3 foals. All fees collected are to be paid into the Illinois

4 Racing Quarter Horse Breeders Fund. No person shall

5 knowingly prepare or cause preparation of an application

6 for registration of such foals that contains false

7 information.

8 (g) The Department of Agriculture, with the advice and

9 assistance of the Illinois Racing Quarter Horse Breeders Fund

10 Advisory Board, shall provide that certain races limited to

11 Illinois conceived and foaled be stakes races and determine the

12 total amount of stakes and awards to be paid to the owners of

13 the winning horses in such races.

14 (Source: P.A. 98-463, eff. 8-16-13.)

15 (230 ILCS 5/31) (from Ch. 8, par. 37-31)

16 Sec. 31. (a) The General Assembly declares that it is the

17 policy of this State to encourage the breeding of standardbred

18 horses in this State and the ownership of such horses by

19 residents of this State in order to provide for: sufficient

20 numbers of high quality standardbred horses to participate in

21 harness racing meetings in this State, and to establish and

22 preserve the agricultural and commercial benefits of such

23 breeding and racing industries to the State of Illinois. It is

24 the intent of the General Assembly to further this policy by

25 the provisions of this Section of this Act.

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1 (b) Each organization licensee conducting a harness racing

2 meeting pursuant to this Act shall provide for at least two

3 races each race program limited to Illinois conceived and

4 foaled horses. A minimum of 6 races shall be conducted each

5 week limited to Illinois conceived and foaled horses. No horses

6 shall be permitted to start in such races unless duly

7 registered under the rules of the Department of Agriculture.

8 (b-5) Organization licensees, not including the Illinois

9 State Fair or the DuQuoin State Fair, shall provide stake races

10 and early closer races for Illinois conceived and foaled horses

11 so that purses distributed for such races shall be no less than

12 17% of total purses distributed for harness racing in that

13 calendar year in addition to any stakes payments and starting

14 fees contributed by horse owners.

15 (b-10) Each organization licensee conducting a harness

16 racing meeting pursuant to this Act shall provide an owner

17 award to be paid from the purse account equal to 25% of the

18 amount earned by Illinois conceived and foaled horses in races

19 that are not restricted to Illinois conceived and foaled

20 horses. The owner awards shall not be paid on races below the

21 $10,000 claiming class.

22 (c) Conditions of races under subsection (b) shall be

23 commensurate with past performance, quality and class of

24 Illinois conceived and foaled horses available. If, however,

25 sufficient competition cannot be had among horses of that class

26 on any day, the races may, with consent of the Board, be

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1 eliminated for that day and substitute races provided.

2 (d) There is hereby created a special fund of the State

3 Treasury to be known as the Illinois Standardbred Breeders

4 Fund.

5 During the calendar year 1981, and each year thereafter,

6 except as provided in subsection (g) of Section 27 of this Act,

7 eight and one-half per cent of all the monies received by the

8 State as privilege taxes on harness racing meetings shall be

9 paid into the Illinois Standardbred Breeders Fund.

10 (e) The Illinois Standardbred Breeders Fund shall be

11 administered by the Department of Agriculture with the

12 assistance and advice of the Advisory Board created in

13 subsection (f) of this Section.

14 (f) The Illinois Standardbred Breeders Fund Advisory Board

15 is hereby created. The Advisory Board shall consist of the

16 Director of the Department of Agriculture, who shall serve as

17 Chairman; the Superintendent of the Illinois State Fair; a

18 member of the Illinois Racing Board, designated by it; a

19 representative of the largest association of Illinois

20 standardbred owners and breeders, recommended by it; a

21 representative of a statewide association representing

22 agricultural fairs in Illinois, recommended by it, such

23 representative to be from a fair at which Illinois conceived

24 and foaled racing is conducted; a representative of the

25 organization licensees conducting harness racing meetings,

26 recommended by them; a representative of the Breeder's

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1 Committee of the association representing the largest number of

2 standardbred owners, breeders, trainers, caretakers, and

3 drivers, recommended by it; and a representative of the

4 association representing the largest number of standardbred

5 owners, breeders, trainers, caretakers, and drivers,

6 recommended by it. Advisory Board members shall serve for 2

7 years commencing January 1 of each odd numbered year. If

8 representatives of the largest association of Illinois

9 standardbred owners and breeders, a statewide association of

10 agricultural fairs in Illinois, the association representing

11 the largest number of standardbred owners, breeders, trainers,

12 caretakers, and drivers, a member of the Breeder's Committee of

13 the association representing the largest number of

14 standardbred owners, breeders, trainers, caretakers, and

15 drivers, and the organization licensees conducting harness

16 racing meetings have not been recommended by January 1 of each

17 odd numbered year, the Director of the Department of

18 Agriculture shall make an appointment for the organization

19 failing to so recommend a member of the Advisory Board.

20 Advisory Board members shall receive no compensation for their

21 services as members but shall be reimbursed for all actual and

22 necessary expenses and disbursements incurred in the execution

23 of their official duties.

24 (g) No monies shall be expended from the Illinois

25 Standardbred Breeders Fund except as appropriated by the

26 General Assembly. Monies appropriated from the Illinois

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1 Standardbred Breeders Fund shall be expended by the Department

2 of Agriculture, with the assistance and advice of the Illinois

3 Standardbred Breeders Fund Advisory Board for the following

4 purposes only:

5 1. To provide purses for races limited to Illinois

6 conceived and foaled horses at the State Fairand the

7 DuQuoin State Fair.

8 2. To provide purses for races limited to Illinois

9 conceived and foaled horses at county fairs.

10 3. To provide purse supplements for races limited to

11 Illinois conceived and foaled horses conducted by

12 associations conducting harness racing meetings.

13 4. No less than 75% of all monies in the Illinois

14 Standardbred Breeders Fund shall be expended for purses in

15 1, 2 and 3 as shown above.

16 5. In the discretion of the Department of Agriculture

17 to provide awards to harness breeders of Illinois conceived

18 and foaled horses which win races conducted by organization

19 licensees conducting harness racing meetings. A breeder is

20 the owner of a mare at the time of conception. No more than

21 10% of all monies appropriated from the Illinois

22 Standardbred Breeders Fund shall be expended for such

23 harness breeders awards. No more than 25% of the amount

24 expended for harness breeders awards shall be expended for

25 expenses incurred in the administration of such harness

26 breeders awards.

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1 6. To pay for the improvement of racing facilities

2 located at the State Fair and County fairs.

3 7. To pay the expenses incurred in the administration

4 of the Illinois Standardbred Breeders Fund.

5 8. To promote the sport of harness racing, including

6 grants up to a maximum of $7,500 per fair per year for

7 conducting pari-mutuel wagering during the advertised

8 dates of a county fair.

9 9. To pay up to $50,000 annually for the Department of

10 Agriculture to conduct drug testing at county fairs racing

11 standardbred horses.

12 10. To pay up to $100,000 annually for distribution to

13 Illinois county fairs to supplement premiums offered in

14 junior classes.

15 11. To pay up to $100,000 annually for division and

16 equal distribution to the animal sciences department of

17 each Illinois public university system engaged in equine

18 research and education on or before the effective date of

19 this amendatory Act of the 100th General Assembly for

20 equine research and education.

21 (h) (Blank) ~~Whenever the Governor finds that the amount in~~

22 ~~the Illinois Standardbred Breeders Fund is more than the total~~

23 ~~of the outstanding appropriations from such fund, the Governor~~

24 ~~shall notify the State Comptroller and the State Treasurer of~~

25 ~~such fact. The Comptroller and the State Treasurer, upon~~

26 ~~receipt of such notification, shall transfer such excess amount~~

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1 ~~from the Illinois Standardbred Breeders Fund to the General~~

2 ~~Revenue Fund~~.

3 (i) A sum equal to 13% ~~12 1/2%~~ of the first prize money of

4 the gross ~~every~~purse won by an Illinois conceived and foaled

5 horse shall be paid 50%by the organization licensee conducting

6 the horse race meeting to the breeder of such winning horse

7 from the organization licensee's account and 50% from the purse

8 account of the licensee ~~share of the money wagered~~. Such

9 payment shall not reduce any award to the owner of the horse or

10 reduce the taxes payable under this Act. Such payment shall be

11 delivered by the organization licensee at the end of each

12 quarter ~~race meeting~~.

13 (j) The Department of Agriculture shall, by rule, with the

14 assistance and advice of the Illinois Standardbred Breeders

15 Fund Advisory Board:

16 1. Qualify stallions for Illinois Standardbred

17 Breeders Fund breeding~~; such stallion shall be owned by a~~

18 ~~resident of the State of Illinois or by an Illinois~~

19 ~~corporation all of whose shareholders, directors, officers~~

20 ~~and incorporators are residents of the State of Illinois~~.

21 Such stallion shall stand for service at and within the

22 State of Illinois at the time of a foal's conception, and

23 such stallion must not stand for service at any place~~, nor~~

24 ~~may semen from such stallion be transported,~~outside the

25 State of Illinois during that calendar year in which the

26 foal is conceived ~~and that the owner of the stallion was~~

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1 ~~for the 12 months prior, a resident of Illinois~~. Foals

2 conceived outside the State of Illinois from shipped semen

3 from a stallion qualified for breeders' awards under this

4 Section are not eligible to participate in the Illinois

5 conceived and foaled program.~~The articles of agreement of~~

6 ~~any partnership, joint venture, limited partnership,~~

7 ~~syndicate, association or corporation and any bylaws and~~

8 ~~stock certificates must contain a restriction that~~

9 ~~provides that the ownership or transfer of interest by any~~

10 ~~one of the persons a party to the agreement can only be~~

11 ~~made to a person who qualifies as an Illinois resident.~~

12 2. Provide for the registration of Illinois conceived

13 and foaled horses and no such horse shall compete in the

14 races limited to Illinois conceived and foaled horses

15 unless registered with the Department of Agriculture. The

16 Department of Agriculture may prescribe such forms as may

17 be necessary to determine the eligibility of such horses.

18 No person shall knowingly prepare or cause preparation of

19 an application for registration of such foals containing

20 false information. A mare (dam) must be in the state at

21 least 180 ~~30~~days prior to foaling or remain in the State

22 at least 30 days at the time of foaling. Beginning with the

23 1996 breeding season and for foals of 1997 and thereafter,

24 a foal conceived in the State of Illinois by transported

25 fresh semen may be eligible for Illinois conceived and

26 foaled registration provided all breeding and foaling

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1 requirements are met. The stallion must be qualified for

2 Illinois Standardbred Breeders Fund breeding at the time of

3 conception and the mare must be inseminated within the

4 State of Illinois. The foal must be dropped in Illinois and

5 properly registered with the Department of Agriculture in

6 accordance with this Act.

7 3. Provide that at least a 5 day racing program shall

8 be conducted at the State Fair each year, which program

9 shall include at least the following races limited to

10 Illinois conceived and foaled horses: (a) a two year old

11 Trot and Pace, and Filly Division of each; (b) a three year

12 old Trot and Pace, and Filly Division of each; (c) an aged

13 Trot and Pace, and Mare Division of each.

14 4. Provide for the payment of nominating, sustaining

15 and starting fees for races promoting the sport of harness

16 racing and for the races to be conducted at the State Fair

17 as provided in subsection (j) 3 of this Section provided

18 that the nominating, sustaining and starting payment

19 required from an entrant shall not exceed 2% of the purse

20 of such race. All nominating, sustaining and starting

21 payments shall be held for the benefit of entrants and

22 shall be paid out as part of the respective purses for such

23 races. Nominating, sustaining and starting fees shall be

24 held in trust accounts for the purposes as set forth in

25 this Act and in accordance with Section 205-15 of the

26 Department of Agriculture Law (20 ILCS 205/205-15).

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1 5. Provide for the registration with the Department of

2 Agriculture of Colt Associations or county fairs desiring

3 to sponsor races at county fairs.

4 6. Provide for the promotion of producing standardbred

5 racehorses by providing a bonus award program for owners of

6 2-year-old horses that win multiple major stakes races that

7 are limited to Illinois conceived and foaled horses.

8 (k) The Department of Agriculture, with the advice and

9 assistance of the Illinois Standardbred Breeders Fund Advisory

10 Board, may allocate monies for purse supplements for such

11 races. In determining whether to allocate money and the amount,

12 the Department of Agriculture shall consider factors,

13 including but not limited to, the amount of money appropriated

14 for the Illinois Standardbred Breeders Fund program, the number

15 of races that may occur, and an organizational licensee's purse

16 structure. The organizational licensee shall notify the

17 Department of Agriculture of the conditions and minimum purses

18 for races limited to Illinois conceived and foaled horses to be

19 conducted by each organizational licensee conducting a harness

20 racing meeting for which purse supplements have been

21 negotiated.

22 (l) All races held at county fairs and the State Fair which

23 receive funds from the Illinois Standardbred Breeders Fund

24 shall be conducted in accordance with the rules of the United

25 States Trotting Association unless otherwise modified by the

26 Department of Agriculture.

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1 (m) At all standardbred race meetings held or conducted

2 under authority of a license granted by the Board, and at all

3 standardbred races held at county fairs which are approved by

4 the Department of Agriculture or at the Illinois or DuQuoin

5 State Fairs, no one shall jog, train, warm up or drive a

6 standardbred horse unless he or she is wearing a protective

7 safety helmet, with the chin strap fastened and in place, which

8 meets the standards and requirements as set forth in the 1984

9 Standard for Protective Headgear for Use in Harness Racing and

10 Other Equestrian Sports published by the Snell Memorial

11 Foundation, or any standards and requirements for headgear the

12 Illinois Racing Board may approve. Any other standards and

13 requirements so approved by the Board shall equal or exceed

14 those published by the Snell Memorial Foundation. Any

15 equestrian helmet bearing the Snell label shall be deemed to

16 have met those standards and requirements.

17 (Source: P.A. 99-756, eff. 8-12-16.)

18 (230 ILCS 5/32.1)

19 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack

20 real estate equalization.

21 (a) In order to encourage new investment in Illinois

22 racetrack facilities and mitigate differing real estate tax

23 burdens among all racetracks, the licensees affiliated or

24 associated with each racetrack that has been awarded live

25 racing dates in the current year shall receive an immediate

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1 pari-mutuel tax credit in an amount equal to the greater of (i)

2 50% of the amount of the real estate taxes paid in the prior

3 year attributable to that racetrack, or (ii) the amount by

4 which the real estate taxes paid in the prior year attributable

5 to that racetrack exceeds 60% of the average real estate taxes

6 paid in the prior year for all racetracks awarded live horse

7 racing meets in the current year.

8 Each year, regardless of whether the organization licensee

9 conducted live racing in the year of certification, the Board

10 shall certify in writing, prior to December 31, the real estate

11 taxes paid in that year for each racetrack and the amount of

12 the pari-mutuel tax credit that each organization licensee,

13 inter-track ~~intertrack~~wagering licensee, andinter-track

14 ~~intertrack~~wagering location licensee that derives its license

15 from such racetrack is entitled in the succeeding calendar

16 year. The real estate taxes considered under this Section for

17 any racetrack shall be those taxes on the real estate parcels

18 and related facilities used to conduct a horse race meeting and

19 inter-track wagering at such racetrack under this Act. In no

20 event shall the amount of the tax credit under this Section

21 exceed the amount of pari-mutuel taxes otherwise calculated

22 under this Act. The amount of the tax credit under this Section

23 shall be retained by each licensee and shall not be subject to

24 any reallocation or further distribution under this Act. The

25 Board may promulgate emergency rules to implement this Section.

26 (b) After the end of the 7-year period beginning on January

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1 1 of the calendar year immediately following the effective date

2 of this amendatory Act of the 100th General Assembly, the

3 organization licensee shall be ineligible to receive a tax

4 credit under this Section.

5 (Source: P.A. 91-40, eff. 6-25-99; revised 9-2-16.)

6 (230 ILCS 5/34.3 new)

7 Sec. 34.3. Drug testing. The Illinois Racing Board and the

8 Department of Agriculture shall jointly establish a program for

9 the purpose of conducting drug testing of horses at county

10 fairs and shall adopt any rules necessary for enforcement of

11 the program. The rules shall include appropriate penalties for

12 violations.

13 (230 ILCS 5/36) (from Ch. 8, par. 37-36)

14 Sec. 36. (a) Whoever administers or conspires to administer

15 to any horse a hypnotic, narcotic, stimulant, depressant or any

16 chemical substance which may affect the speed of a horse at any

17 time in any race where the purse or any part of the purse is

18 made of money authorized by any Section of this Act, except

19 those chemical substances permitted by ruling of the Board,

20 internally, externally or by hypodermic method in a race or

21 prior thereto, or whoever knowingly enters a horse in any race

22 within a period of 24 hours after any hypnotic, narcotic,

23 stimulant, depressant or any other chemical substance which may

24 affect the speed of a horse at any time, except those chemical

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1 substances permitted by ruling of the Board, has been

2 administered to such horse either internally or externally or

3 by hypodermic method for the purpose of increasing or retarding

4 the speed of such horse shall be guilty of a Class 4 felony.

5 The Board shall suspend or revoke such violator's license.

6 (b) The term "hypnotic" as used in this Section includes

7 all barbituric acid preparations and derivatives.

8 (c) The term "narcotic" as used in this Section includes

9 opium and all its alkaloids, salts, preparations and

10 derivatives, cocaine and all its salts, preparations and

11 derivatives and substitutes.

12 (d) The provisions of this Section 36 and the treatment

13 authorized herein apply to horses entered in and competing in

14 race meetings as defined in Section 3.07 of this Act and to

15 horses entered in and competing at any county fair.

16 (Source: P.A. 79-1185.)

17 (230 ILCS 5/40) (from Ch. 8, par. 37-40)

18 Sec. 40. (a) The imposition of any fine or penalty provided

19 in this Act shall not preclude the Board in its rules and

20 regulations from imposing a fine or penalty for any other

21 action which, in the Board's discretion, is a detriment or

22 impediment to horse racing.

23 (b) The Director of Agriculture or his or her authorized

24 representative shall impose the following monetary penalties

25 and hold administrative hearings as required for failure to

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1 submit the following applications, lists, or reports within the

2 time period, date or manner required by statute or rule or for

3 removing a foal from Illinois prior to inspection:

4 (1) late filing of a renewal application for offering

5 or standing stallion for service:

6 (A) if an application is submitted no more than 30

7 days late, $50;

8 (B) if an application is submitted no more than 45

9 days late, $150; or

10 (C) if an application is submitted more than 45

11 days late, if filing of the application is allowed

12 under an administrative hearing, $250;

13 (2) late filing of list or report of mares bred:

14 (A) if a list or report is submitted no more than

15 30 days late, $50;

16 (B) if a list or report is submitted no more than

17 60 days late, $150; or

18 (C) if a list or report is submitted more than 60

19 days late, if filing of the list or report is allowed

20 under an administrative hearing, $250;

21 (3) filing an Illinois foaled thoroughbred mare status

22 report after the statutory deadline as provided in

23 subsection (k) of Section 30 of this Act~~December 31~~:

24 (A) if a report is submitted no more than 30 days

25 late, $50;

26 (B) if a report is submitted no more than 90 days

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1 late, $150;

2 (C) if a report is submitted no more than 150 days

3 late, $250; or

4 (D) if a report is submitted more than 150 days

5 late, if filing of the report is allowed under an

6 administrative hearing, $500;

7 (4) late filing of application for foal eligibility

8 certificate:

9 (A) if an application is submitted no more than 30

10 days late, $50;

11 (B) if an application is submitted no more than 90

12 days late, $150;

13 (C) if an application is submitted no more than 150

14 days late, $250; or

15 (D) if an application is submitted more than 150

16 days late, if filing of the application is allowed

17 under an administrative hearing, $500;

18 (5) failure to report the intent to remove a foal from

19 Illinois prior to inspection, identification and

20 certification by a Department of Agriculture investigator,

21 $50; and

22 (6) if a list or report of mares bred is incomplete,

23 $50 per mare not included on the list or report.

24 Any person upon whom monetary penalties are imposed under

25 this Section 3 times within a5-year ~~5 year~~ period shall have

26 any further monetary penalties imposed at double the amounts

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1 set forth above. All monies assessed and collected for

2 violations relating to thoroughbreds shall be paid into the

3 Illinois Thoroughbred Breeders Fund. All monies assessed and

4 collected for violations relating to standardbreds shall be

5 paid into the Illinois Standardbred Breeders Fund.

6 (Source: P.A. 99-933, eff. 1-27-17.)

7 (230 ILCS 5/54.75)

8 Sec. 54.75. Horse Racing Equity Trust Fund.

9 (a) There is created a Fund to be known as the Horse Racing

10 Equity Trust Fund, which is a non-appropriated trust fund held

11 separate and apart from State moneys. The Fund shall consist of

12 moneys paid into it by owners licensees under theIllinois

13 ~~Riverboat~~ Gambling Act for the purposes described in this

14 Section. The Fund shall be administered by the Board. Moneys in

15 the Fund shall be distributed as directed and certified by the

16 Board in accordance with the provisions of subsection (b).

17 (b) The moneys deposited into the Fund, plus any accrued

18 interest on those moneys, shall be distributed within 10 days

19 after those moneys are deposited into the Fund as follows:

20 (1) Sixty percent of all moneys distributed under this

21 subsection shall be distributed to organization licensees

22 to be distributed at their race meetings as purses.

23 Fifty-seven percent of the amount distributed under this

24 paragraph (1) shall be distributed for thoroughbred race

25 meetings and 43% shall be distributed for standardbred race

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1 meetings. Within each breed, moneys shall be allocated to

2 each organization licensee's purse fund in accordance with

3 the ratio between the purses generated for that breed by

4 that licensee during the prior calendar year and the total

5 purses generated throughout the State for that breed during

6 the prior calendar year by licensees in the current

7 calendar year.

8 (2) The remaining 40% of the moneys distributed under

9 this subsection (b) shall be distributed as follows:

10 (A) 11% shall be distributed to any person (or its

11 successors or assigns) who had operating control of a

12 racetrack that conducted live racing in 2002 at a

13 racetrack in a county with at least 230,000 inhabitants

14 that borders the Mississippi River and is a licensee in

15 the current year; and

16 (B) the remaining 89% shall be distributed pro rata

17 according to the aggregate proportion of total handle

18 from wagering on live races conducted in Illinois

19 (irrespective of where the wagers are placed) for

20 calendar years 2004 and 2005 to any person (or its

21 successors or assigns) who (i) had majority operating

22 control of a racing facility at which live racing was

23 conducted in calendar year 2002, (ii) is a licensee in

24 the current year, and (iii) is not eligible to receive

25 moneys under subparagraph (A) of this paragraph (2).

26 The moneys received by an organization licensee

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1 under this paragraph (2) shall be used by each

2 organization licensee to improve, maintain, market,

3 and otherwise operate its racing facilities to conduct

4 live racing, which shall include backstretch services

5 and capital improvements related to live racing and the

6 backstretch. Any organization licensees sharing common

7 ownership may pool the moneys received and spent at all

8 racing facilities commonly owned in order to meet these

9 requirements.

10 If any person identified in this paragraph (2) becomes

11 ineligible to receive moneys from the Fund, such amount

12 shall be redistributed among the remaining persons in

13 proportion to their percentages otherwise calculated.

14 (c) The Board shall monitor organization licensees to

15 ensure that moneys paid to organization licensees under this

16 Section are distributed by the organization licensees as

17 provided in subsection (b).

18 (Source: P.A. 95-1008, eff. 12-15-08.)

19 (230 ILCS 5/56 new)

20 Sec. 56. Electronic gaming.

21 (a) A person, firm, corporation, or limited liability

22 company having operating control of a race track may apply to

23 the Gaming Board for an electronic gaming license. An

24 electronic gaming license shall authorize its holder to conduct

25 electronic gaming on the grounds of the race track controlled

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1 by the licensee's race track. Only one electronic gaming

2 license may be awarded for any race track. A holder of an

3 electronic gaming license shall be subject to the Illinois

4 Gambling Act and rules of the Illinois Gaming Board concerning

5 electronic gaming. If the person, firm, corporation, or limited

6 liability company having operating control of a race track is

7 found by the Illinois Gaming Board to be unsuitable for an

8 electronic gaming license under the Illinois Gambling Act and

9 rules of the Gaming Board, that person, firm, corporation, or

10 limited liability company shall not be granted an electronic

11 gaming license. Each license shall specify the number of gaming

12 positions that its holder may operate.

13 An electronic gaming licensee may not permit persons under

14 21 years of age to be present in its electronic gaming

15 facility, but the licensee may accept wagers on live racing and

16 inter-track wagers at its electronic gaming facility.

17 (b) For purposes of this subsection, "adjusted gross

18 receipts" means an electronic gaming licensee's gross receipts

19 less winnings paid to wagerers and shall also include any

20 amounts that would otherwise be deducted pursuant to subsection

21 (a-9) of Section 13 of the Illinois Gambling Act. The adjusted

22 gross receipts by an electronic gaming licensee from electronic

23 gaming remaining after the payment of taxes under Section 13 of

24 the Illinois Gambling Act shall be distributed as follows:

25 (1) Amounts shall be paid to the purse account at the

26 track at which the organization licensee is conducting

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1 racing equal to the following:

2 12.75% of annual adjusted gross receipts up to and

3 including $75,000,000;

4 20% of annual adjusted gross receipts in excess of

5 $75,000,000 but not exceeding $100,000,000;

6 26.5% of annual adjusted gross receipts in excess

7 of $100,000,000 but not exceeding $125,000,000; and

8 20.5% of annual adjusted gross receipts in excess

9 of $125,000,000.

10 (2) The remainder shall be retained by the electronic

11 gaming licensee.

12 (c) Electronic gaming receipts placed into the purse

13 account of an organization licensee racing thoroughbred horses

14 shall be used for purses, for health care services or worker's

15 compensation for racing industry workers, for equine research,

16 for programs to care for and transition injured and retired

17 thoroughbred horses that race at the race track, or for horse

18 ownership promotion, in accordance with the agreement of the

19 horsemen's association representing the largest number of

20 owners and trainers who race at that organization licensee's

21 race meetings.

22 Annually, from the purse account of an organization

23 licensee racing thoroughbred horses in this State, except for

24 in Madison County, an amount equal to 12% of the electronic

25 gaming receipts placed into the purse accounts shall be paid to

26 the Illinois Thoroughbred Breeders Fund and shall be used for

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1 owner awards; a stallion program pursuant to paragraph (3) of

2 subsection (g) of Section 30 of this Act; and Illinois

3 conceived and foaled stakes races pursuant to paragraph (2) of

4 subsection (g) of Section 30 of this Act, as specifically

5 designated by the horsemen's association representing the

6 largest number of owners and trainers who race at the

7 organization licensee's race meetings.

8 Annually, from the purse account of an organization

9 licensee racing thoroughbred horses in Madison County, an

10 amount equal to 10% of the electronic gaming receipts placed

11 into the purse accounts shall be paid to the Illinois

12 Thoroughbred Breeders Fund and shall be used for owner awards;

13 a stallion program pursuant to paragraph (3) of subsection (g)

14 of Section 30 of this Act; and Illinois conceived and foaled

15 stakes races pursuant to paragraph (2) of subsection (g) of

16 Section 30 of this Act, as specifically designated by the

17 horsemen's association representing the largest number of

18 owners and trainers who race at the organization licensee's

19 race meetings.

20 Annually, from the purse account of an organization

21 licensee conducting thoroughbred races at a race track in

22 Madison County, an amount equal to 1% of the electronic gaming

23 receipts distributed to purses per subsection (b) of this

24 Section 56 shall be paid as follows: 0.33 1/3% to Southern

25 Illinois University Department of Animal Sciences for equine

26 research and education, an amount equal to 0.33 1/3% of the

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1 electronic gaming receipts shall be used to operate laundry

2 facilities or a kitchen for backstretch workers at that race

3 track, and an amount equal to 0.33 1/3% of the electronic

4 gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)

5 non-profit organization that cares for injured and unwanted

6 horses that race at that race track.

7 Annually, from the purse account of organization licensees

8 conducting thoroughbred races at race tracks in Cook County,

9 $100,000 shall be paid for division and equal distribution to

10 the animal sciences department of each Illinois public

11 university system engaged in equine research and education on

12 or before the effective date of this amendatory Act of the

13 100th General Assembly for equine research and education.

14 (d) Annually, from the purse account of an organization

15 licensee racing standardbred horses, an amount equal to 15% of

16 the electronic gaming receipts placed into that purse account

17 shall be paid to the Illinois Colt Stakes Purse Distribution

18 Fund. Moneys deposited into the Illinois Colt Stakes Purse

19 Distribution Fund shall be used for standardbred racing as

20 authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of

21 subsection (g) of Section 31 of this Act and for bonus awards

22 as authorized under paragraph 6 of subsection (j) of Section 31

23 of this Act.

24 Section 90-40. The Riverboat Gambling Act is amended by

25 changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,

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1 11.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,

2 and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,

3 7.12, and 7.13 as follows:

4 (230 ILCS 10/1) (from Ch. 120, par. 2401)

5 Sec. 1. Short title. This Act shall be known and may be

6 cited as theIllinois ~~Riverboat~~ Gambling Act.

7 (Source: P.A. 86-1029.)

8 (230 ILCS 10/2) (from Ch. 120, par. 2402)

9 Sec. 2. Legislative Intent.

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

11 of Illinois by assisting economic development, ~~and~~ promoting

12 Illinois tourism,and~~by~~ increasing the amount of revenues

13 available to the State to assist and support education, and to

14 defray State expenses, including unpaid bills.

15 (b) While authorization of riverboat and casino gambling

16 will enhance investment,beautification, development and

17 tourism in Illinois, it is recognized that it will do so

18 successfully only if public confidence and trust in the

19 credibility and integrity of the gambling operations and the

20 regulatory process is maintained. Therefore, regulatory

21 provisions of this Act are designed to strictly regulate the

22 facilities, persons, associations and practices related to

23 gambling operations pursuant to the police powers of the State,

24 including comprehensive law enforcement supervision.

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1 (c) The Illinois Gaming Board established under this Act

2 should, as soon as possible, inform each applicant for an

3 owners license of the Board's intent to grant or deny a

4 license.

5 (Source: P.A. 93-28, eff. 6-20-03.)

6 (230 ILCS 10/3) (from Ch. 120, par. 2403)

7 Sec. 3. ~~Riverboat~~ Gambling Authorized.

8 (a) Riverboat and casinogambling operationsand

9 electronic gaming operations ~~and the system of wagering~~

10 ~~incorporated therein~~, as defined in this Act, are hereby

11 authorized to the extent that they are carried out in

12 accordance with the provisions of this Act.

13 (b) This Act does not apply to the pari-mutuel system of

14 wagering used or intended to be used in connection with the

15 horse-race meetings as authorized under the Illinois Horse

16 Racing Act of 1975, lottery games authorized under the Illinois

17 Lottery Law, bingo authorized under the Bingo License and Tax

18 Act, charitable games authorized under the Charitable Games Act

19 or pull tabs and jar games conducted under the Illinois Pull

20 Tabs and Jar Games Act.This Act applies to electronic gaming

21 authorized under the Illinois Horse Racing Act of 1975 to the

22 extent provided in that Act and in this Act.

23 (c) Riverboat gambling conducted pursuant to this Act may

24 be authorized upon any water within the State of Illinois or

25 any water other than Lake Michigan which constitutes a boundary

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1 of the State of Illinois.Notwithstanding any provision in this

2 subsection (c) to the contrary, a licensee that receives its

3 license pursuant to subsection (e-5) of Section 7 may conduct

4 riverboat gambling on Lake Michigan from a home dock located on

5 Lake Michigan subject to any limitations contained in Section

6 7. Notwithstanding any provision in this subsection (c) to the

7 contrary, a licensee may conduct gambling at its home dock

8 facility as provided in Sections 7 and 11. A licensee may

9 conduct riverboat gambling authorized under this Act

10 regardless of whether it conducts excursion cruises. A licensee

11 may permit the continuous ingress and egress of passengers for

12 the purpose of gambling.

13 (d) Gambling that is conducted in accordance with this Act

14 using slot machines and video games of chance and other

15 electronic gambling games as defined in both this Act and the

16 Illinois Horse Racing Act of 1975 is authorized.

17 (Source: P.A. 91-40, eff. 6-25-99.)

18 (230 ILCS 10/4) (from Ch. 120, par. 2404)

19 Sec. 4. Definitions. As used in this Act:

20 ~~(a)~~ "Board" means the Illinois Gaming Board.

21 ~~(b)~~ "Occupational license" means a license issued by the

22 Board to a person or entity to perform an occupation which the

23 Board has identified as requiring a license to engage in

24 riverboat gambling, casino gambling, or electronic gaming in

25 Illinois.

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1 ~~(c)~~ "Gambling game" includes, but is not limited to,

2 baccarat, twenty-one, poker, craps, slot machine, video game of

3 chance, roulette wheel, klondike table, punchboard, faro

4 layout, keno layout, numbers ticket, push card, jar ticket, or

5 pull tab which is authorized by the Board as a wagering device

6 under this Act.

7 ~~(d)~~"Riverboat" means a self-propelled excursion boat, a

8 permanently moored barge, or permanently moored barges that are

9 permanently fixed together to operate as one vessel, on which

10 lawful gambling is authorized and licensed as provided in this

11 Act.

12 "Slot machine" means any mechanical, electrical, or other

13 device, contrivance, or machine that is authorized by the Board

14 as a wagering device under this Act which, upon insertion of a

15 coin, currency, token, or similar object therein, or upon

16 payment of any consideration whatsoever, is available to play

17 or operate, the play or operation of which may deliver or

18 entitle the person playing or operating the machine to receive

19 cash, premiums, merchandise, tokens, or anything of value

20 whatsoever, whether the payoff is made automatically from the

21 machine or in any other manner whatsoever. A slot machine:

22 (1) may utilize spinning reels or video displays or

23 both;

24 (2) may or may not dispense coins, tickets, or tokens

25 to winning patrons;

26 (3) may use an electronic credit system for receiving

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1 wagers and making payouts; and

2 (4) may simulate a table game.

3 "Slot machine" does not include table games authorized by

4 the Board as a wagering device under this Act.

5 ~~(e)~~ "Managers license" means a license issued by the Board

6 to a person or entity to manage gambling operations conducted

7 by the State pursuant to Section 7.3.

8 ~~(f)~~ "Dock" means the location where a riverboat moors for

9 the purpose of embarking passengers for and disembarking

10 passengers from the riverboat.

11 ~~(g)~~ "Gross receipts" means the total amount of money

12 exchanged for the purchase of chips, tokens, or electronic

13 cards by riverboat patrons.

14 ~~(h)~~"Adjusted gross receipts" means the gross receipts less

15 winnings paid to wagerers.

16 ~~(i)~~ "Cheat" means to alter the selection of criteria which

17 determine the result of a gambling game or the amount or

18 frequency of payment in a gambling game.

19 ~~(j) (Blank).~~

20 ~~(k)~~ "Gambling operation" means the conduct of ~~authorized~~

21 gambling games authorized under this Actupon a riverboator in

22 a casino or authorized under this Act and the Illinois Horse

23 Racing Act of 1975 at an electronic gaming facility.

24 ~~(l)~~ "License bid" means the lump sum amount of money that

25 an applicant bids and agrees to pay the State in return for an

26 owners license that is issued orre-issued on or after July 1,

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1 2003.

2 "Table game" means a live gaming apparatus upon which

3 gaming is conducted or that determines an outcome that is the

4 object of a wager, including, but not limited to, baccarat,

5 twenty-one, blackjack, poker, craps, roulette wheel, klondike

6 table, punchboard, faro layout, keno layout, numbers ticket,

7 push card, jar ticket, pull tab, or other similar games that

8 are authorized by the Board as a wagering device under this

9 Act. "Table game" does not include slot machines or video games

10 of chance.

11 ~~(m)~~ The terms "minority person", "female", and "person with

12 a disability" shall have the same meaning as defined in Section

13 2 of the Business Enterprise for Minorities, Females, and

14 Persons with Disabilities Act.

15 "Authority" means the Chicago Casino Development

16 Authority.

17 "Casino" means a facility at which lawful gambling is

18 authorized as provided in this Act.

19 "Owners license" means a license to conduct riverboat or

20 casino gambling operations, but does not include an electronic

21 gaming license.

22 "Licensed owner" means a person who holds an owners

23 license.

24 "Electronic gaming" means slot machine gambling or

25 gambling with table games positioned within an electronic

26 gaming facility as defined in the Illinois Gambling Act, as

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1 defined in this Act, or defined by the Board that is conducted

2 at a race track pursuant to an electronic gaming license.

3 "Electronic gaming facility" means the area where the Board

4 has authorized electronic gaming at a race track of an

5 organization licensee under the Illinois Horse Racing Act of

6 1975 that holds an electronic gaming license.

7 "Electronic gaming license" means a license issued by the

8 Board under Section 7.7 of this Act authorizing electronic

9 gaming at an electronic gaming facility.

10 "Electronic gaming licensee" means an entity that holds an

11 electronic gaming license.

12 "Organization licensee" means an entity authorized by the

13 Illinois Racing Board to conduct pari-mutuel wagering in

14 accordance with the Illinois Horse Racing Act of 1975. With

15 respect only to electronic gaming, "organization licensee"

16 includes the authorization for electronic gaming created under

17 subsection (a) of Section 56 of the Illinois Horse Racing Act

18 of 1975.

19 "Casino operator license" means the license held by the

20 person or entity selected by the Authority to manage and

21 operate a riverboat or casino within the geographic area of the

22 authorized municipality pursuant to this Act and the Chicago

23 Casino Development Authority Act.

24 (Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)

25 (230 ILCS 10/5) (from Ch. 120, par. 2405)

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1 Sec. 5. Gaming Board.

2 (a) (1) There is hereby established the Illinois Gaming

3 Board, which shall have the powers and duties specified in this

4 Act and in the Chicago Casino Development Authority Act, and

5 all other powers necessary and proper to fully and effectively

6 execute this Act for the purpose of administering, regulating,

7 and enforcing the system of riverboat and casino gambling and

8 electronic gaming established by this Act and by the Chicago

9 Casino Development Authority Act. Its jurisdiction shall

10 extend under this Act and the Chicago Casino Development

11 Authority Actto every person, association, corporation,

12 partnership and trust involved in riverboat and casinogambling

13 operations and electronic gaming in the State of Illinois.

14 (2) The Board shall consist of 5 members to be appointed by

15 the Governor with the advice and consent of the Senate, one of

16 whom shall be designated by the Governor to bechairperson

17 ~~chairman~~. Each member shall have a reasonable knowledge of the

18 practice, procedure and principles of gambling operations.

19 Each member shall either be a resident of Illinois or shall

20 certify that he or shewill become a resident of Illinois

21 before taking office.

22 On and after the effective date of this amendatory Act of

23 the 100th General Assembly, new appointees to the Board must

24 include the following:

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

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

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1 years of verifiable training and experience in the fields

2 of investigation and law enforcement.

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

4 with experience in auditing and with knowledge of complex

5 corporate structures and transactions.

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

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

8 business with either material responsibility for the daily

9 operations and management of the overall company or

10 business or material responsibility for the policy making

11 of the company or business.

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

13 in Illinois.

14 Notwithstanding any provision of this subsection (a), the

15 requirements of subparagraphs (A) through (D) of this paragraph

16 (2) shall not apply to any person reappointed pursuant to

17 paragraph (3).

18 No more than 3 members of the Board may be from the same

19 political party. The Board should reflect the ethnic, cultural,

20 and geographic diversity of the State. No Board member shall,

21 within a period of one year immediately preceding nomination,

22 have been employed or received compensation or fees for

23 services from a person or entity, or its parent or affiliate,

24 that has engaged in business with the Board, a licensee, or a

25 licensee under the Illinois Horse Racing Act of 1975. Board

26 members must publicly disclose all prior affiliations with

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1 gaming interests, including any compensation, fees, bonuses,

2 salaries, and other reimbursement received from a person or

3 entity, or its parent or affiliate, that has engaged in

4 business with the Board, a licensee, or a licensee under the

5 Illinois Horse Racing Act of 1975. This disclosure must be made

6 within 30 days after nomination but prior to confirmation by

7 the Senate and must be made available to the members of the

8 Senate. ~~At least one member shall be experienced in law~~

9 ~~enforcement and criminal investigation, at least one member~~

10 ~~shall be a certified public accountant experienced in~~

11 ~~accounting and auditing, and at least one member shall be a~~

12 ~~lawyer licensed to practice law in Illinois.~~

13 (3) The terms of office of the Board members shall be 3

14 years, except that the terms of office of the initial Board

15 members appointed pursuant to this Act will commence from the

16 effective date of this Act and run as follows: one for a term

17 ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for

18 a term ending July 1, 1993. Upon the expiration of the

19 foregoing terms, the successors of such members shall serve a

20 term for 3 years and until their successors are appointed and

21 qualified for like terms. Vacancies in the Board shall be

22 filled for the unexpired term in like manner as original

23 appointments. Each member of the Board shall be eligible for

24 reappointment at the discretion of the Governor with the advice

25 and consent of the Senate.

26 (4) Each member of the Board shall receive $300 for each

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1 day the Board meets and for each day the member conducts any

2 hearing pursuant to this Act. Each member of the Board shall

3 also be reimbursed for all actual and necessary expenses and

4 disbursements incurred in the execution of official duties.

5 (5) No person shall be appointed a member of the Board or

6 continue to be a member of the Board who is, or whose spouse,

7 child or parent is, a member of the board of directors of, or a

8 person financially interested in, any gambling operation

9 subject to the jurisdiction of this Board, or any race track,

10 race meeting, racing association or the operations thereof

11 subject to the jurisdiction of the Illinois Racing Board. No

12 Board member shall hold any other public office. No person

13 shall be a member of the Board who is not of good moral

14 character or who has been convicted of, or is under indictment

15 for, a felony under the laws of Illinois or any other state, or

16 the United States.

17 (5.5) No member of the Board shall engage in any political

18 activity. For the purposes of this Section, "political" means

19 any activity in support of or in connection with any campaign

20 for federal, State, or local elective office or any political

21 organization, but does not include activities (i) relating to

22 the support or opposition of any executive, legislative, or

23 administrative action (as those terms are defined in Section 2

24 of the Lobbyist Registration Act), (ii) relating to collective

25 bargaining, or (iii) that are otherwise in furtherance of the

26 person's official State duties or governmental and public

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1 service functions.

2 (6) Any member of the Board may be removed by the Governor

3 for neglect of duty, misfeasance, malfeasance, or nonfeasance

4 in office or for engaging in any political activity.

5 (7) Before entering upon the discharge of the duties of his

6 office, each member of the Board shall take an oath that he

7 will faithfully execute the duties of his office according to

8 the laws of the State and the rules and regulations adopted

9 therewith and shall give bond to the State of Illinois,

10 approved by the Governor, in the sum of $25,000. Every such

11 bond, when duly executed and approved, shall be recorded in the

12 office of the Secretary of State. Whenever the Governor

13 determines that the bond of any member of the Board has become

14 or is likely to become invalid or insufficient, he shall

15 require such member forthwith to renew his bond, which is to be

16 approved by the Governor. Any member of the Board who fails to

17 take oath and give bond within 30 days from the date of his

18 appointment, or who fails to renew his bond within 30 days

19 after it is demanded by the Governor, shall be guilty of

20 neglect of duty and may be removed by the Governor. The cost of

21 any bond given by any member of the Board under this Section

22 shall be taken to be a part of the necessary expenses of the

23 Board.

24 (7.5) For the examination of all mechanical,

25 electromechanical, or electronic table games, slot machines,

26 slot accounting systems, and other electronic gaming equipment

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1 for compliance with this Act, the Board may utilize the

2 services of one or more independent outside testing

3 laboratories that have been accredited by a national

4 accreditation body and that, in the judgment of the Board, are

5 qualified to perform such examinations.

6 (8) The Board shall employ such personnel as may be

7 necessary to carry out its functions and shall determine the

8 salaries of all personnel, except those personnel whose

9 salaries are determined under the terms of a collective

10 bargaining agreement. No person shall be employed to serve the

11 Board who is, or whose spouse, parent or child is, an official

12 of, or has a financial interest in or financial relation with,

13 any operator engaged in gambling operations within this State

14 or any organization engaged in conducting horse racing within

15 this State.For the one year immediately preceding employment,

16 an employee shall not have been employed or received

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

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

19 Board, a licensee, or a licensee under the Illinois Horse

20 Racing Act of 1975. Any employee violating these prohibitions

21 shall be subject to termination of employment.In addition, all

22 Board members and employees are subject to the restrictions set

23 forth in Section 5-45 of the State Officials and Employees

24 Ethics Act.

25 (9) An Administrator shall perform any and all duties that

26 the Board shall assign him. The salary of the Administrator

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1 shall be determined by the Board and, in addition, he shall be

2 reimbursed for all actual and necessary expenses incurred by

3 him in discharge of his official duties. The Administrator

4 shall keep records of all proceedings of the Board and shall

5 preserve all records, books, documents and other papers

6 belonging to the Board or entrusted to its care. The

7 Administrator shall devote his full time to the duties of the

8 office and shall not hold any other office or employment.

9 (b) The Board shall have general responsibility for the

10 implementation of this Act. Its duties include, without

11 limitation, the following:

12 (1) To decide promptly and in reasonable order all

13 license applications. Any party aggrieved by an action of

14 the Board denying, suspending, revoking, restricting or

15 refusing to renew a license may request a hearing before

16 the Board. A request for a hearing must be made to the

17 Board in writing within 5 days after service of notice of

18 the action of the Board. Notice of the action of the Board

19 shall be served either by personal delivery or by certified

20 mail, postage prepaid, to the aggrieved party. Notice

21 served by certified mail shall be deemed complete on the

22 business day following the date of such mailing. The Board

23 shall conduct all requested hearings promptly and in

24 reasonable order;

25 (2) To conduct all hearings pertaining to civil

26 violations of this Act or rules and regulations promulgated

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1 hereunder;

2 (3) To promulgate such rules and regulations as in its

3 judgment may be necessary to protect or enhance the

4 credibility and integrity of gambling operations

5 authorized by this Act and the regulatory process

6 hereunder;

7 (4) To provide for the establishment and collection of

8 all license and registration fees and taxes imposed by this

9 Act and the rules and regulations issued pursuant hereto.

10 All such fees and taxes shall be deposited into the State

11 Gaming Fund;

12 (5) To provide for the levy and collection of penalties

13 and fines for the violation of provisions of this Act and

14 the rules and regulations promulgated hereunder. All such

15 fines and penalties shall be deposited into the Education

16 Assistance Fund, created by Public Act 86-0018, of the

17 State of Illinois;

18 (6) To be present through its inspectors and agents any

19 time gambling operations are conducted on any riverboat, in

20 any casino, or at any electronic gaming facility for the

21 purpose of certifying the revenue thereof, receiving

22 complaints from the public, and conducting such other

23 investigations into the conduct of the gambling games and

24 the maintenance of the equipment as from time to time the

25 Board may deem necessary and proper;

26 (7) To review and rule upon any complaint by a licensee

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1 regarding any investigative procedures of the State which

2 are unnecessarily disruptive of gambling operations. The

3 need to inspect and investigate shall be presumed at all

4 times. The disruption of a licensee's operations shall be

5 proved by clear and convincing evidence, and establish

6 that: (A) the procedures had no reasonable law enforcement

7 purposes, and (B) the procedures were so disruptive as to

8 unreasonably inhibit gambling operations;

9 (8) To hold at least one meeting each quarter of the

10 fiscal year. In addition, special meetings may be called by

11 the Chairman or any 2 Board members upon 72 hours written

12 notice to each member. All Board meetings shall be subject

13 to the Open Meetings Act. Three members of the Board shall

14 constitute a quorum, and 3 votes shall be required for any

15 final determination by the Board. The Board shall keep a

16 complete and accurate record of all its meetings. A

17 majority of the members of the Board shall constitute a

18 quorum for the transaction of any business, for the

19 performance of any duty, or for the exercise of any power

20 which this Act requires the Board members to transact,

21 perform or exercise en banc, except that, upon order of the

22 Board, one of the Board members or an administrative law

23 judge designated by the Board may conduct any hearing

24 provided for under this Act or by Board rule and may

25 recommend findings and decisions to the Board. The Board

26 member or administrative law judge conducting such hearing

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1 shall have all powers and rights granted to the Board in

2 this Act. The record made at the time of the hearing shall

3 be reviewed by the Board, or a majority thereof, and the

4 findings and decision of the majority of the Board shall

5 constitute the order of the Board in such case;

6 (9) To maintain records which are separate and distinct

7 from the records of any other State board or commission.

8 Such records shall be available for public inspection and

9 shall accurately reflect all Board proceedings;

10 (10) To file a written annual report with the Governor

11 on or before March 1 each year and such additional reports

12 as the Governor may request. The annual report shall

13 include a statement of receipts and disbursements by the

14 Board, actions taken by the Board, and any additional

15 information and recommendations which the Board may deem

16 valuable or which the Governor may request;

17 (11) (Blank);

18 (12) (Blank);

19 (13) To assume responsibility for administration and

20 enforcement of the Video Gaming Act;~~and~~

21 (13.1) To assume responsibility for the administration

22 and enforcement of operations at electronic gaming

23 facilities pursuant to this Act and the Illinois Horse

24 Racing Act of 1975;

25 (13.2) To assume responsibility for the administration

26 and enforcement of gambling operations at the Chicago

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1 Casino Development Authority's casino pursuant to this Act

2 and the Chicago Casino Development Authority Act; and

3 (14) To adopt, by rule, a code of conduct governing

4 Board members and employees that ensure, to the maximum

5 extent possible, that persons subject to this Code avoid

6 situations, relationships, or associations that may

7 represent or lead to a conflict of interest.

8 Internal controls and changes submitted by licensees must

9 be reviewed and either approved or denied with cause within 90

10 days after receipt of submission is deemed final by the

11 Illinois Gaming Board. In the event an internal control

12 submission or change does not meet the standards set by the

13 Board, staff of the Board must provide technical assistance to

14 the licensee to rectify such deficiencies within 90 days after

15 the initial submission and the revised submission must be

16 reviewed and approved or denied with cause within 90 days after

17 the date the revised submission is deemed final by the Board.

18 For the purposes of this paragraph, "with cause" means that the

19 approval of the submission would jeopardize the integrity of

20 gaming. In the event the Board staff has not acted within the

21 timeframe, the submission shall be deemed approved.

22 (c) The Board shall have jurisdiction over and shall

23 supervise all gambling operations governed by this Actand the

24 Chicago Casino Development Authority Act. The Board shall have

25 all powers necessary and proper to fully and effectively

26 execute the provisions of this Actand the Chicago Casino

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1 Development Authority Act, including, but not limited to, the

2 following:

3 (1) To investigate applicants and determine the

4 eligibility of applicants for licenses and to select among

5 competing applicants the applicants which best serve the

6 interests of the citizens of Illinois.

7 (2) To have jurisdiction and supervision over all

8 ~~riverboat~~gambling operationsauthorized under this Act

9 and the Chicago Casino Development Authority Act ~~in this~~

10 ~~State~~ and all persons in places ~~on riverboats~~ where

11 gambling operations are conducted.

12 (3) To promulgate rules and regulations for the purpose

13 of administering the provisions of this Actand the Chicago

14 Casino Development Authority Act and to prescribe rules,

15 regulations and conditions under which all~~riverboat~~

16 gambling operations subject to this Act and the Chicago

17 Casino Development Authority Act ~~in the State~~shall be

18 conducted. Such rules and regulations are to provide for

19 the prevention of practices detrimental to the public

20 interest and for the best interests of~~riverboat~~ gambling,

21 including rules and regulations regarding the inspection

22 of electronic gaming facilities, casinos, and ~~such~~

23 riverboats,and the review of any permits or licenses

24 necessary to operate a riverboat, casino, or electronic

25 gaming facilitiesunder any laws or regulations applicable

26 to riverboats, casinos, or electronic gaming facilities

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1 and to impose penalties for violations thereof.

2 (4) To enter the office, riverboats, casinos,

3 electronic gaming facilities, and other facilities, or

4 other places of business of a licensee, where evidence of

5 the compliance or noncompliance with the provisions of this

6 Act and the Chicago Casino Development Authority Act is

7 likely to be found.

8 (5) To investigate alleged violations of this Act, the

9 Chicago Casino Development Authority Act,or the rules of

10 the Board and to take appropriate disciplinary action

11 against a licensee or a holder of an occupational license

12 for a violation, or institute appropriate legal action for

13 enforcement, or both.

14 (6) To adopt standards for the licensing of all persons

15 and entities under this Act and the Chicago Casino

16 Development Authority Act, as well as for electronic or

17 mechanical gambling games, and to establish fees for such

18 licenses.

19 (7) To adopt appropriate standards for all electronic

20 gaming facilities, riverboats, casinos,andother

21 facilities authorized under this Act and the Chicago Casino

22 Development Authority Act.

23 (8) To require that the records, including financial or

24 other statements of any licensee under this Actand the

25 Chicago Casino Development Authority Act, shall be kept in

26 such manner as prescribed by the Board and that any such

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1 licensee involved in the ownership or management of

2 gambling operations submit to the Board an annual balance

3 sheet and profit and loss statement, list of the

4 stockholders or other persons having a 1% or greater

5 beneficial interest in the gambling activities of each

6 licensee, and any other information the Board deems

7 necessary in order to effectively administer this Act and

8 the Chicago Casino Development Authority Actand all rules,

9 regulations, orders and final decisions promulgated under

10 this Act and the Chicago Casino Development Authority Act.

11 (9) To conduct hearings, issue subpoenas for the

12 attendance of witnesses and subpoenas duces tecum for the

13 production of books, records and other pertinent documents

14 in accordance with the Illinois Administrative Procedure

15 Act, and to administer oaths and affirmations to the

16 witnesses, when, in the judgment of the Board, it is

17 necessary to administer or enforce this Act, the Chicago

18 Casino Development Authority Act, or the Board rules.

19 (10) To prescribe a form to be used by any licensee

20 involved in the ownership or management of gambling

21 operations as an application for employment for their

22 employees.

23 (11) To revoke or suspend licenses, other than the

24 license issued to the Chicago Casino Development

25 Authority,as the Board may see fit and in compliance with

26 applicable laws of the State regarding administrative

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1 procedures, and to review applications for the renewal of

2 licenses. The Board may suspend an owners license(other

3 than the license issued to the Chicago Casino Development

4 Authority), electronic gaming license, or casino operator

5 license, without notice or hearing upon a determination

6 that the safety or health of patrons or employees is

7 jeopardized by continuing a gambling operation conducted

8 under that license ~~riverboat's operation~~. The suspension

9 may remain in effect until the Board determines that the

10 cause for suspension has been abated. The Board may revoke

11 an ~~the~~ owners license (other than the license issued to the

12 Chicago Casino Development Authority), electronic gaming

13 license, or casino operator licenseupon a determination

14 that the licensee ~~owner~~ has not made satisfactory progress

15 toward abating the hazard.

16 (12) To eject or exclude or authorize the ejection or

17 exclusion of, any person from~~riverboat~~ gambling

18 facilities where that ~~such~~person is in violation of this

19 Act or the Chicago Casino Development Authority Act, rules

20 and regulations thereunder, or final orders of the Board,

21 or where such person's conduct or reputation is such that

22 his or herpresence within the~~riverboat~~ gambling

23 facilities may, in the opinion of the Board, call into

24 question the honesty and integrity of the gambling

25 operations or interfere with the orderly conduct thereof;

26 provided that the propriety of such ejection or exclusion

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1 is subject to subsequent hearing by the Board.

2 (13) To require all licensees of gambling operations to

3 utilize a cashless wagering system whereby all players'

4 money is converted to tokens, electronic cards, or chips

5 which shall be used only for wagering in the gambling

6 establishment.

7 (14) (Blank).

8 (15) To suspend, revoke or restrict licenses, other

9 than the license issued to the Chicago Casino Development

10 Authority,to require the removal of a licensee or an

11 employee of a licensee for a violation of this Act, the

12 Chicago Casino Development Authority Act, or a Board rule

13 or for engaging in a fraudulent practice, and to impose

14 civil penalties of up to $5,000 against individuals and up

15 to $10,000 or an amount equal to the daily gross receipts,

16 whichever is larger, against licensees for each violation

17 of any provision of the Act, the Chicago Casino Development

18 Authority Act,any rules adopted by the Board, any order of

19 the Board or any other action which, in the Board's

20 discretion, is a detriment or impediment to ~~riverboat~~

21 gambling operations.

22 (16) To hire employees to gather information, conduct

23 investigations and carry out any other tasks contemplated

24 under this Act or the Chicago Casino Development Authority

25 Act.

26 (17) To establish minimum levels of insurance to be

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1 maintained by licensees.

2 (18) To authorize a licensee to sell or serve alcoholic

3 liquors, wine or beer as defined in the Liquor Control Act

4 of 1934 on board a riverboat or in a casinoand to have

5 exclusive authority to establish the hours for sale and

6 consumption of alcoholic liquor on board a riverboat or in

7 a casino, notwithstanding any provision of the Liquor

8 Control Act of 1934 or any local ordinance, and regardless

9 of whether the riverboat makes excursions. The

10 establishment of the hours for sale and consumption of

11 alcoholic liquor on board a riverboator in a casino is an

12 exclusive power and function of the State. A home rule unit

13 may not establish the hours for sale and consumption of

14 alcoholic liquor on board a riverboator in a casino. This

15 subdivision (18) ~~amendatory Act of 1991~~is a denial and

16 limitation of home rule powers and functions under

17 subsection (h) of Section 6 of Article VII of the Illinois

18 Constitution.

19 (19) After consultation with the U.S. Army Corps of

20 Engineers, to establish binding emergency orders upon the

21 concurrence of a majority of the members of the Board

22 regarding the navigability of water, relative to

23 excursions, in the event of extreme weather conditions,

24 acts of God or other extreme circumstances.

25 (20) To delegate the execution of any of its powers

26 under this Act or the Chicago Casino Development Authority

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1 Actfor the purpose of administering and enforcing this

2 Act, the Chicago Casino Development Authority Act, and the

3 ~~its~~ rules adopted by the Board under both Acts ~~and~~

4 ~~regulations hereunder~~.

5 (20.5) To approve any contract entered into on its

6 behalf.

7 (20.6) To appoint investigators to conduct

8 investigations, searches, seizures, arrests, and other

9 duties imposed under this Act, as deemed necessary by the

10 Board. These investigators have and may exercise all of the

11 rights and powers of peace officers, provided that these

12 powers shall be limited to offenses or violations occurring

13 or committed in a casino, in an electronic gaming facility,

14 or on a riverboat or dock, as defined in subsections (d)

15 and (f) of Section 4, or as otherwise provided by this Act,

16 the Chicago Casino Development Authority Act, or any other

17 law.

18 (20.7) To contract with the Department of State Police

19 for the use of trained and qualified State police officers

20 and with the Department of Revenue for the use of trained

21 and qualified Department of Revenue investigators to

22 conduct investigations, searches, seizures, arrests, and

23 other duties imposed under this Act or the Chicago Casino

24 Development Authority Act and to exercise all of the rights

25 and powers of peace officers, provided that the powers of

26 Department of Revenue investigators under this subdivision

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1 (20.7) shall be limited to offenses or violations occurring

2 or committed in a casino, in an electronic gaming facility,

3 or on a riverboat or dock, as defined in subsections (d)

4 and (f) of Section 4, or as otherwise provided by this Act

5 or any other law. In the event the Department of State

6 Police or the Department of Revenue is unable to fill

7 contracted police or investigative positions, the Board

8 may appoint investigators to fill those positions pursuant

9 to subdivision (20.6).

10 (21) To adopt rules concerning the conduct of

11 electronic gaming.

12 (22) To have the same jurisdiction and supervision over

13 casinos and electronic gaming facilities as the Board has

14 over riverboats, including, but not limited to, the power

15 to (i) investigate, review, and approve contracts as that

16 power is applied to riverboats, (ii) adopt rules for

17 administering the provisions of this Act or the Chicago

18 Casino Development Authority Act, (iii) adopt standards

19 for the licensing of all persons involved with a casino or

20 electronic gaming facility, (iv) investigate alleged

21 violations of this Act by any person involved with a casino

22 or electronic gaming facility, and (v) require that

23 records, including financial or other statements of any

24 casino or electronic gaming facility, shall be kept in such

25 manner as prescribed by the Board.

26 (23) To supervise and regulate the Chicago Casino

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1 Development Authority in accordance with the Chicago

2 Casino Development Authority Act and the provisions of this

3 Act.

4 (24) ~~(21)~~ To take any other action as may be reasonable

5 or appropriate to enforce this Act, the Chicago Casino

6 Development Authority Act, and the rules adopted by the

7 Board under both Acts ~~and regulations hereunder~~.

8 All Board powers enumerated in this Section in relation to

9 licensees shall apply equally to the holder of any casino

10 management contract entered into pursuant to the Chicago Casino

11 Development Authority Act.

12 (d) The Board may seek and shall receive the cooperation of

13 the Department of State Police in conducting background

14 investigations of applicants and in fulfilling its

15 responsibilities under this Section. Costs incurred by the

16 Department of State Police as a result of such cooperation

17 shall be paid by the Board in conformance with the requirements

18 of Section 2605-400 of the Department of State Police Law (20

19 ILCS 2605/2605-400).

20 (e) The Board must authorize to each investigator and to

21 any other employee of the Board exercising the powers of a

22 peace officer a distinct badge that, on its face, (i) clearly

23 states that the badge is authorized by the Board and (ii)

24 contains a unique identifying number. No other badge shall be

25 authorized by the Board.

26 (Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)

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1 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)

2 Sec. 5.1. Disclosure of records.

3 (a) Notwithstanding any applicable statutory provision to

4 the contrary, the Board shall, on written request from any

5 person, provide information furnished by an applicant or

6 licensee concerning the applicant or licensee, his products,

7 services or gambling enterprises and his business holdings, as

8 follows:

9 (1) The name, business address and business telephone

10 number of any applicant or licensee.

11 (2) An identification of any applicant or licensee

12 including, if an applicant or licensee is not an

13 individual, the names and addresses of all stockholders and

14 directors, if the entity is a corporation; the names and

15 addresses of all members, if the entity is a limited

16 liability company; the names and addresses of all partners,

17 both general and limited, if the entity is a partnership;

18 and the names and addresses of all beneficiaries, if the

19 entity is a trust ~~the state of incorporation or~~

20 ~~registration, the corporate officers, and the identity of~~

21 ~~all shareholders or participants~~. If an applicant or

22 licensee has a pending registration statement filed with

23 the Securities and Exchange Commission, only the names of

24 those persons or entities holding interest of 5% or more

25 must be provided.

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1 (3) An identification of any business, including, if

2 applicable, the state of incorporation or registration, in

3 which an applicant or licensee or an applicant's or

4 licensee's spouse or children has an equity interest of

5 more than 1%. If an applicant or licensee is a corporation,

6 partnership or other business entity, the applicant or

7 licensee shall identify any other corporation, partnership

8 or business entity in which it has an equity interest of 1%

9 or more, including, if applicable, the state of

10 incorporation or registration. This information need not

11 be provided by a corporation, partnership or other business

12 entity that has a pending registration statement filed with

13 the Securities and Exchange Commission.

14 (4) Whether an applicant or licensee has been indicted,

15 convicted, pleaded guilty or nolo contendere, or forfeited

16 bail concerning any criminal offense under the laws of any

17 jurisdiction, either felony or misdemeanor (except for

18 traffic violations), including the date, the name and

19 location of the court, arresting agency and prosecuting

20 agency, the case number, the offense, the disposition and

21 the location and length of incarceration.

22 (5) Whether an applicant or licensee has had any

23 license or certificate issued by a licensing authority in

24 Illinois or any other jurisdiction denied, restricted,

25 suspended, revoked or not renewed and a statement

26 describing the facts and circumstances concerning the

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1 denial, restriction, suspension, revocation or

2 non-renewal, including the licensing authority, the date

3 each such action was taken, and the reason for each such

4 action.

5 (6) Whether an applicant or licensee has ever filed or

6 had filed against it a proceeding in bankruptcy or has ever

7 been involved in any formal process to adjust, defer,

8 suspend or otherwise work out the payment of any debt

9 including the date of filing, the name and location of the

10 court, the case and number of the disposition.

11 (7) Whether an applicant or licensee has filed, or been

12 served with a complaint or other notice filed with any

13 public body, regarding the delinquency in the payment of,

14 or a dispute over the filings concerning the payment of,

15 any tax required under federal, State or local law,

16 including the amount, type of tax, the taxing agency and

17 time periods involved.

18 (8) A statement listing the names and titles of all

19 public officials or officers of any unit of government, and

20 relatives of said public officials or officers who,

21 directly or indirectly, own any financial interest in, have

22 any beneficial interest in, are the creditors of or hold

23 any debt instrument issued by, or hold or have any interest

24 in any contractual or service relationship with, an

25 applicant or licensee.

26 (9) Whether an applicant or licensee has made, directly

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1 or indirectly, any political contribution, or any loans,

2 donations or other payments, to any candidate or office

3 holder, within 5 years from the date of filing the

4 application, including the amount and the method of

5 payment.

6 (10) The name and business telephone number of the

7 counsel representing an applicant or licensee in matters

8 before the Board.

9 (11) A description of any proposed or approved

10 riverboat or casinogamingor electronic gaming operation,

11 including the type of boat, home dock or casino or

12 electronic gaminglocation, expected economic benefit to

13 the community, anticipated or actual number of employees,

14 any statement from an applicant or licensee regarding

15 compliance with federal and State affirmative action

16 guidelines, projected or actual admissions and projected

17 or actual adjusted gross gaming receipts.

18 (12) A description of the product or service to be

19 supplied by an applicant for a supplier's license.

20 (b) Notwithstanding any applicable statutory provision to

21 the contrary, the Board shall, on written request from any

22 person, also provide the following information:

23 (1) The amount of the wagering tax and admission tax

24 paid daily to the State of Illinois by the holder of an

25 owner's license.

26 (2) Whenever the Board finds an applicant for an

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1 owner's license unsuitable for licensing, a copy of the

2 written letter outlining the reasons for the denial.

3 (3) Whenever the Board has refused to grant leave for

4 an applicant to withdraw his application, a copy of the

5 letter outlining the reasons for the refusal.

6 (c) Subject to the above provisions, the Board shall not

7 disclose any information which would be barred by:

8 (1) Section 7 of the Freedom of Information Act; or

9 (2) The statutes, rules, regulations or

10 intergovernmental agreements of any jurisdiction.

11 (d) The Board may assess fees for the copying of

12 information in accordance with Section 6 of the Freedom of

13 Information Act.

14 (Source: P.A. 96-1392, eff. 1-1-11.)

15 (230 ILCS 10/5.3 new)

16 Sec. 5.3. Ethical conduct.

17 (a) Officials and employees of the corporate authority of a

18 host community must carry out their duties and responsibilities

19 in such a manner as to promote and preserve public trust and

20 confidence in the integrity and conduct of gaming.

21 (b) Officials and employees of the corporate authority of a

22 host community shall not use or attempt to use his or her

23 official position to secure or attempt to secure any privilege,

24 advantage, favor, or influence for himself or herself or

25 others.

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1 (c) Officials and employees of the corporate authority of a

2 host community may not have a financial interest, directly or

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

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

5 entity in any contract or subcontract for the performance of

6 any work for a riverboat or casino that is located in the host

7 community. This prohibition shall extend to the holding or

8 acquisition of an interest in any entity identified by Board

9 action that, in the Board's judgment, could represent the

10 potential for or the appearance of a financial interest. The

11 holding or acquisition of an interest in such entities through

12 an indirect means, such as through a mutual fund, shall not be

13 prohibited, except that the Board may identify specific

14 investments or funds that, in its judgment, are so influenced

15 by gaming holdings as to represent the potential for or the

16 appearance of a conflict of interest.

17 (d) Officials and employees of the corporate authority of a

18 host community may not accept any gift, gratuity, service,

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

20 exception of unsolicited items of an incidental nature, from

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

22 riverboat or casino that is located in the host community.

23 (e) Officials and employees of the corporate authority of a

24 host community shall not, during the period that the person is

25 an official or employee of the corporate authority or for a

26 period of 2 years immediately after leaving such office,

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1 knowingly accept employment or receive compensation or fees for

2 services from a person or entity, or its parent or affiliate,

3 that has engaged in business with the riverboat or casino that

4 is located in the host community that resulted in contracts

5 with an aggregate value of at least $25,000 or if that official

6 or employee has made a decision that directly applied to the

7 person or entity, or its parent or affiliate.

8 (f) A spouse, child, or parent of an official or employee

9 of the corporate authority of a host community may not have a

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

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

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

13 contract or subcontract for the performance of any work for a

14 riverboat or casino in the host community. This prohibition

15 shall extend to the holding or acquisition of an interest in

16 any entity identified by Board action that, in the judgment of

17 the Board, could represent the potential for or the appearance

18 of a conflict of interest. The holding or acquisition of an

19 interest in such entities through an indirect means, such as

20 through a mutual fund, shall not be prohibited, expect that the

21 Board may identify specific investments or funds that, in its

22 judgment, are so influenced by gaming holdings as to represent

23 the potential for or the appearance of a conflict of interest.

24 (g) A spouse, child, or parent of an official or employee

25 of the corporate authority of a host community may not accept

26 any gift, gratuity, service, compensation, travel, lodging, or

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

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

3 doing business with the riverboat or casino that is located in

4 the host community.

5 (h) A spouse, child, or parent of an official or employee

6 of the corporate authority of a host community may not, during

7 the period that the person is an official of the corporate

8 authority or for a period of 2 years immediately after leaving

9 such office or employment, knowingly accept employment or

10 receive compensation or fees for services from a person or

11 entity, or its parent or affiliate, that has engaged in

12 business with the riverboat or casino that is located in the

13 host community that resulted in contracts with an aggregate

14 value of at least $25,000 or if that official or employee has

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

16 or its parent or affiliate.

17 (i) Officials and employees of the corporate authority of a

18 host community shall not attempt, in any way, to influence any

19 person or entity doing business with the riverboat or casino

20 that is located in the host community or any officer, agent, or

21 employee thereof to hire or contract with any person or entity

22 for any compensated work.

23 (j) Any communication between an official of the corporate

24 authority of a host community and any applicant for an owners

25 license in the host community, or an officer, director, or

26 employee of a riverboat or casino in the host community,

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1 concerning any matter relating in any way to gaming shall be

2 disclosed to the Board. Such disclosure shall be in writing by

3 the official within 30 days after the communication and shall

4 be filed with the Board. Disclosure must consist of the date of

5 the communication, the identity and job title of the person

6 with whom the communication was made, a brief summary of the

7 communication, the action requested or recommended, all

8 responses made, the identity and job title of the person making

9 the response, and any other pertinent information. Public

10 disclosure of the written summary provided to the Board and the

11 Gaming Board shall be subject to the exemptions provided under

12 the Freedom of Information Act.

13 This subsection (j) shall not apply to communications

14 regarding traffic, law enforcement, security, environmental

15 issues, city services, transportation, or other routine

16 matters concerning the ordinary operations of the riverboat or

17 casino. For purposes of this subsection (j), "ordinary

18 operations" means operations relating to the casino or

19 riverboat facility other than the conduct of gambling

20 activities, and "routine matters" includes the application

21 for, issuance of, renewal of, and other processes associated

22 with municipal permits and licenses.

23 (k) Any official or employee who violates any provision of

24 this Section is guilty of a Class 4 felony.

25 (l) For purposes of this Section, "host community" or "host

26 municipality" means a unit of local government that contains a

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1 riverboat or casino within its borders, but does not include

2 the City of Chicago or the Chicago Casino Development

3 Authority.

4 (230 ILCS 10/6) (from Ch. 120, par. 2406)

5 Sec. 6. Application for Owners License.

6 (a) A qualified person may apply to the Board for an owners

7 license to conduct a riverboat gambling operation as provided

8 in this Act. The application shall be made on forms provided by

9 the Board and shall contain such information as the Board

10 prescribes, including but not limited to the identity of the

11 riverboat on which such gambling operation is to be conducted,

12 if applicable, and the exact location where such riverboat or

13 casino will be located ~~docked~~, a certification that the

14 riverboat will be registered under this Act at all times during

15 which gambling operations are conducted on board, detailed

16 information regarding the ownership and management of the

17 applicant, and detailed personal information regarding the

18 applicant. Any application for an owners license to be

19 re-issued on or after June 1, 2003 shall also include the

20 applicant's license bid in a form prescribed by the Board.

21 Information provided on the application shall be used as a

22 basis for a thorough background investigation which the Board

23 shall conduct with respect to each applicant. An incomplete

24 application shall be cause for denial of a license by the

25 Board.

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1 (a-5) In addition to any other information required under

2 this Section, each application for an owners license must

3 include the following information:

4 (1) The history and success of the applicant and each

5 person and entity disclosed under subsection (c) of this

6 Section in developing tourism facilities ancillary to

7 gaming, if applicable.

8 (2) The likelihood that granting a license to the

9 applicant will lead to the creation of quality, living wage

10 jobs and permanent, full-time jobs for residents of the

11 State and residents of the unit of local government that is

12 designated as the home dock of the proposed facility where

13 gambling is to be conducted by the applicant.

14 (3) The projected number of jobs that would be created

15 if the license is granted and the projected number of new

16 employees at the proposed facility where gambling is to be

17 conducted by the applicant.

18 (4) The record, if any, of the applicant and its

19 developer in meeting commitments to local agencies,

20 community-based organizations, and employees at other

21 locations where the applicant or its developer has

22 performed similar functions as they would perform if the

23 applicant were granted a license.

24 (5) Identification of adverse effects that might be

25 caused by the proposed facility where gambling is to be

26 conducted by the applicant, including the costs of meeting

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1 increased demand for public health care, child care, public

2 transportation, affordable housing, and social services,

3 and a plan to mitigate those adverse effects.

4 (6) The record, if any, of the applicant and its

5 developer regarding compliance with:

6 (A) federal, state, and local discrimination, wage

7 and hour, disability, and occupational and

8 environmental health and safety laws; and

9 (B) state and local labor relations and employment

10 laws.

11 (7) The applicant's record, if any, in dealing with its

12 employees and their representatives at other locations.

13 (8) A plan concerning the utilization of

14 minority-owned and female-owned businesses and concerning

15 the hiring of minorities and females.

16 (9) Evidence the applicant used its best efforts to

17 reach a goal of 25% ownership representation by minority

18 persons and 5% ownership representation by females.

19 (b) Applicants shall submit with their application all

20 documents, resolutions, and letters of support from the

21 governing body that represents the municipality or county

22 wherein the licensee will be located ~~dock~~.

23 (c) Each applicant shall disclose the identity of every

24 person or entity ~~, association, trust or corporation~~ having a

25 greater than 1% direct or indirect pecuniary interest in the

26 ~~riverboat~~gambling operation with respect to which the license

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1 is sought. If the disclosed entity is a trust, the application

2 shall disclose the names and addresses of all ~~the~~

3 beneficiaries; if a corporation, the names and addresses of all

4 stockholders and directors; if a partnership, the names and

5 addresses of all partners, both general and limited.

6 (d) An application shall be filed and considered in

7 accordance with the rules of the Board. Each application shall

8 be accompanied by a non-refundable ~~An~~application fee of

9 $100,000. In addition, a non-refundable fee of $50,000 shall be

10 paid at the time of filing to defray the costs associated with

11 the background investigation conducted by the Board. If the

12 costs of the investigation exceed $50,000, the applicant shall

13 pay the additional amount to the Boardwithin 7 days after

14 requested by the Board. If the costs of the investigation are

15 less than $50,000, the applicant shall receive a refund of the

16 remaining amount. All information, records, interviews,

17 reports, statements, memoranda or other data supplied to or

18 used by the Board in the course of its review or investigation

19 of an application for a license or a renewal under this Act

20 shall be privileged, strictly confidential and shall be used

21 only for the purpose of evaluating an applicant for a license

22 or a renewal. Such information, records, interviews, reports,

23 statements, memoranda or other data shall not be admissible as

24 evidence, nor discoverable in any action of any kind in any

25 court or before any tribunal, board, agency or person, except

26 for any action deemed necessary by the Board.The application

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1 fee shall be deposited into the Gaming Facilities Fee Revenue

2 Fund.

3 (e) The Board shall charge each applicant a fee set by the

4 Department of State Police to defray the costs associated with

5 the search and classification of fingerprints obtained by the

6 Board with respect to the applicant's application. These fees

7 shall be paid into the State Police Services Fund.

8 (f) The licensed owner shall be the person primarily

9 responsible for the boator casino itself. Only one ~~riverboat~~

10 gambling operation may be authorized by the Board on any

11 riverboat or in any casino. The applicant must identify the

12 ~~each~~ riverboat or premisesit intends to use and certify that

13 the riverboat or premises: (1) has the authorized capacity

14 required in this Act; (2) is accessible to persons with

15 disabilities; and (3) is fully registered and licensed in

16 accordance with any applicable laws.

17 (g) A person who knowingly makes a false statement on an

18 application is guilty of a Class A misdemeanor.

19 (Source: P.A. 99-143, eff. 7-27-15.)

20 (230 ILCS 10/7) (from Ch. 120, par. 2407)

21 Sec. 7. Owners Licenses.

22 (a) The Board shall issue owners licenses to persons or

23 entities ~~, firms or corporations~~ which apply for such licenses

24 upon payment to the Board of the non-refundable license feeas

25 provided in subsection (e) or (e-5) ~~set by the Board, upon~~

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1 ~~payment of a $25,000 license fee for the first year of~~

2 ~~operation and a $5,000 license fee for each succeeding year~~ and

3 upon a determination by the Board that the applicant is

4 eligible for an owners license pursuant to this Act, the

5 Chicago Casino Development Authority Act,and the rules of the

6 Board. From the effective date of this amendatory Act of the

7 95th General Assembly until (i) 3 years after the effective

8 date of this amendatory Act of the 95th General Assembly, (ii)

9 the date any organization licensee begins to operate a slot

10 machine or video game of chance under the Illinois Horse Racing

11 Act of 1975 or this Act, (iii) the date that payments begin

12 under subsection (c-5) of Section 13 of the Act, ~~or~~ (iv) the

13 wagering tax imposed under Section 13 of this Act is increased

14 by law to reflect a tax rate that is at least as stringent or

15 more stringent than the tax rate contained in subsection (a-3)

16 of Section 13, or (v) when an owners licensee holding a license

17 issued pursuant to Section 7.1 of this Act begins conducting

18 gaming, whichever occurs first, as a condition of licensure and

19 as an alternative source of payment for those funds payable

20 under subsection (c-5) of Section 13 of this ~~the Riverboat~~

21 ~~Gambling~~ Act, any owners licensee that holds or receives its

22 owners license on or after the effective date of this

23 amendatory Act of the 94th General Assembly, other than an

24 owners licensee operating a riverboat with adjusted gross

25 receipts in calendar year 2004 of less than $200,000,000, must

26 pay into the Horse Racing Equity Trust Fund, in addition to any

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1 other payments required under this Act, an amount equal to 3%

2 of the adjusted gross receipts received by the owners licensee.

3 The payments required under this Section shall be made by the

4 owners licensee to the State Treasurer no later than 3:00

5 o'clock p.m. of the day after the day when the adjusted gross

6 receipts were received by the owners licensee. A person~~, firm~~

7 or entity ~~corporation~~is ineligible to receive an owners

8 license if:

9 (1) the person has been convicted of a felony under the

10 laws of this State, any other state, or the United States;

11 (2) the person has been convicted of any violation of

12 Article 28 of the Criminal Code of 1961 or the Criminal

13 Code of 2012, or substantially similar laws of any other

14 jurisdiction;

15 (3) the person has submitted an application for a

16 license under this Actor the Chicago Casino Development

17 Authority Act which contains false information;

18 (4) the person is a member of the Board;

19 (5) a person defined in (1), (2), (3) or (4) is an

20 officer, director or managerial employee of theentity ~~firm~~

21 ~~or corporation~~;

22 (6) the entity ~~firm or corporation~~ employs a person

23 defined in (1), (2), (3) or (4) who participates in the

24 management or operation of gambling operations authorized

25 under this Act or the Chicago Casino Development Authority

26 Act;

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1 (7) (blank); or

2 (8) a license of the person or entity ~~, firm or~~

3 ~~corporation~~issued under this Actor the Chicago Casino

4 Development Authority Act, or a license to own or operate

5 gambling facilities in any other jurisdiction, has been

6 revoked.

7 The Board is expressly prohibited from making changes to

8 the requirement that licensees make payment into the Horse

9 Racing Equity Trust Fund without the express authority of the

10 Illinois General Assembly and making any other rule to

11 implement or interpret this amendatory Act of the 95th General

12 Assembly. For the purposes of this paragraph, "rules" is given

13 the meaning given to that term in Section 1-70 of the Illinois

14 Administrative Procedure Act.

15 (a-1) Upon approval of the members of the Chicago Casino

16 Development Board, the Chicago Casino Development Authority's

17 executive director, and the Chicago casino operator licensee,

18 the Board shall issue an owners license to the Chicago Casino

19 Development Authority that authorizes the conduct of gambling

20 operations in a casino located in the City of Chicago.

21 (b) In determining whether to grant an owners license to an

22 applicant other than the Chicago Casino Development Authority,

23 the Board shall consider:

24 (1) the character, reputation, experience and

25 financial integrity of the applicants and of any other or

26 separate person that either:

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1 (A) controls, directly or indirectly, such

2 applicant, or

3 (B) is controlled, directly or indirectly, by such

4 applicant or by a person which controls, directly or

5 indirectly, such applicant;

6 (2) the facilities or proposed facilities for the

7 conduct of ~~riverboat~~gambling;

8 (3) the highest prospective total revenue to be derived

9 by the State from the conduct of~~riverboat~~ gambling;

10 (4) the extent to which the ownership of the applicant

11 reflects the diversity of the State by including minority

12 persons, females, and persons with a disability and the

13 good faith affirmative action plan of each applicant to

14 recruit, train and upgrade minority persons, females, and

15 persons with a disability in all employment

16 classifications;

17 (5) the financial ability of the applicant to purchase

18 and maintain adequate liability and casualty insurance;

19 (6) whether the applicant has adequate capitalization

20 to provide and maintain, for the duration of a license, a

21 riverboat or casino;

22 (7) the extent to which the applicant exceeds or meets

23 other standards for the issuance of an owners license which

24 the Board may adopt by rule;~~and~~

25 (8) the ~~The~~ amount of the applicant's license bid; ~~.~~

26 (9) the extent to which the applicant or the proposed

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1 host municipality plans to enter into revenue sharing

2 agreements with communities other than the host

3 municipality; and

4 (10) the extent to which the ownership of an applicant

5 includes the most qualified number of minority persons,

6 females, and persons with a disability.

7 (c) Each owners license shall specify the place where the

8 casino ~~riverboats~~shall operateor the riverboat shall operate

9 and dock.

10 (d) Each applicant shall submit with his application, on

11 forms provided by the Board, 2 sets of his fingerprints.

12 (e) In addition to any licenses authorized under subsection

13 (e-5) of this Section, the ~~The~~ Board may issue up to 10

14 licenses authorizing the holders of such licenses to own

15 riverboats. In the application for an owners license, the

16 applicant shall state the dock at which the riverboat is based

17 and the water on which the riverboat will be located. The Board

18 shall issue 5 licenses to become effective not earlier than

19 January 1, 1991. Three of such licenses shall authorize

20 riverboat gambling on the Mississippi River, or, with approval

21 by the municipality in which the riverboat was docked on August

22 7, 2003 and with Board approval, be authorized to relocate to a

23 new location, in a municipality that (1) borders on the

24 Mississippi River or is within 5 miles of the city limits of a

25 municipality that borders on the Mississippi River and (2), on

26 August 7, 2003, had a riverboat conducting riverboat gambling

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1 operations pursuant to a license issued under this Act; one of

2 which shall authorize riverboat gambling from a home dock in

3 the city of East St. Louis. One other license shall authorize

4 riverboat gambling on the Illinois Riverin Tazewell County or,

5 with Board approval, shall authorize the riverboat to relocate

6 to a new location that is no more than 10 miles away from its

7 original location, in a municipality that borders on the

8 Illinois River or is within 5 miles of the city limits of a

9 municipality that borders on the Illinois River ~~south of~~

10 ~~Marshall County~~. The Board shall issue one additional license

11 to become effective not earlier than March 1, 1992, which shall

12 authorize riverboat gambling on the Des Plaines River in Will

13 County. The Board may issue 4 additional licenses to become

14 effective not earlier than March 1, 1992. In determining the

15 water upon which riverboats will operate, the Board shall

16 consider the economic benefit which riverboat gambling confers

17 on the State, and shall seek to assure that all regions of the

18 State share in the economic benefits of riverboat gambling.

19 In granting all licenses, the Board may give favorable

20 consideration to economically depressed areas of the State, to

21 applicants presenting plans which provide for significant

22 economic development over a large geographic area, and to

23 applicants who currently operate non-gambling riverboats in

24 Illinois. The Board shall review all applications for owners

25 licenses, and shall inform each applicant of the Board's

26 decision. The Board may grant an owners license to an applicant

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1 that has not submitted the highest license bid, but if it does

2 not select the highest bidder, the Board shall issue a written

3 decision explaining why another applicant was selected and

4 identifying the factors set forth in this Section that favored

5 the winning bidder. The fee for issuance or renewal of a

6 license pursuant to this subsection (e) shall be $100,000.

7 (e-5) In addition to licenses authorized under subsection

8 (e) of this Section:

9 (1) the Board shall issue one owners license

10 authorizing the conduct of casino gambling in the City of

11 Chicago;

12 (2) the Board may issue one owners license authorizing

13 the conduct of riverboat gambling in the City of Danville;

14 (3) the Board may issue one owners license authorizing

15 the conduct of riverboat gambling located in one of the

16 following municipalities in Lake County: Park City, North

17 Chicago, or Waukegan;

18 (4) the Board may issue one owners license authorizing

19 the conduct of riverboat gambling in the City of Rockford;

20 (5) the Board may issue one owners license authorizing

21 the conduct of riverboat gambling in a municipality that is

22 wholly or partially located in one of the following

23 townships of Cook County: Bloom, Bremen, Calumet, Rich,

24 Thornton, or Worth Township; and

25 (6) the Board may issue one owners license authorizing

26 the conduct of riverboat gambling in the unincorporated

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1 area of Williamson County adjacent to the Big Muddy River.

2 Each application for a license pursuant to this subsection

3 (e-5) shall be submitted to the Board no later than 6 months

4 after the effective date of this amendatory Act of the 100th

5 General Assembly and shall include the non-refundable

6 application fee and the non-refundable background

7 investigation fee as provided in subsection (d) of Section 6 of

8 this Act. In the event that an applicant submits an application

9 for a license pursuant to this subsection (e-5) prior to the

10 effective date of this amendatory Act of the 100th General

11 Assembly, such applicant shall submit the non-refundable

12 application fee and background investigation fee as provided in

13 subsection (d) of Section 6 of this Act no later than 6 months

14 after the effective date of this amendatory Act of the 100th

15 General Assembly.

16 The Board shall consider issuing a license pursuant to

17 paragraphs (2) through (6) of this subsection only after the

18 corporate authority of the municipality or the county board of

19 the county in which the riverboat shall be located has

20 certified to the Board the following:

21 (i) that the applicant has negotiated with the

22 corporate authority or county board in good faith;

23 (ii) that the applicant and the corporate authority or

24 county board have mutually agreed on the permanent location

25 of the riverboat;

26 (iii) that the applicant and the corporate authority or

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1 county board have mutually agreed on the temporary location

2 of the riverboat;

3 (iv) that the applicant and the corporate authority or

4 the county board have mutually agreed on the percentage of

5 revenues that will be shared with the municipality or

6 county, if any; and

7 (v) that the applicant and the corporate authority or

8 county board have mutually agreed on any zoning, licensing,

9 public health, or other issues that are within the

10 jurisdiction of the municipality or county.

11 At least 7 days before the corporate authority of a

12 municipality or county board of the county submits a

13 certification to the Board concerning items (i) through (v) of

14 this subsection, it shall hold a public hearing to discuss

15 items (i) through (v), as well as any other details concerning

16 the proposed riverboat in the municipality or county. The

17 corporate authority or county board must subsequently

18 memorialize the details concerning the proposed riverboat in a

19 resolution that must be adopted by a majority of the corporate

20 authority or county board before any certification is sent to

21 the Board. The Board shall not alter, amend, change, or

22 otherwise interfere with any agreement between the applicant

23 and the corporate authority of the municipality or county board

24 of the county regarding the location of any temporary or

25 permanent facility.

26 In addition, prior to the Board issuing the owners license

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1 authorized under paragraph (4) of subsection (e-5), an impact

2 study shall be completed to determine what location in the city

3 will provide the greater impact to the region, including the

4 creation of jobs and the generation of tax revenue.

5 (e-10) The licenses authorized under subsection (e-5) of

6 this Section shall be issued within 12 months after the date

7 the license application is submitted. If the Board does not

8 issue the licenses within that time period, then the Board

9 shall give a written explanation to the applicant as to why it

10 has not reached a determination and when it reasonably expects

11 to make a determination. The fee for the issuance or renewal of

12 a license issued pursuant to this subsection (e-10) shall be

13 $100,000. Additionally, a licensee located outside of Cook

14 County shall pay a minimum initial fee of $17,500 per gaming

15 position, and a licensee located in Cook County shall pay a

16 minimum initial fee of $30,000 per gaming position. The initial

17 fees payable under this subsection (e-10) shall be deposited

18 into the Gaming Facilities Fee Revenue Fund.

19 (e-15) Each licensee of a license authorized under

20 subsection (e-5) of this Section shall make a reconciliation

21 payment 3 years after the date the licensee begins operating in

22 an amount equal to 75% of the adjusted gross receipts for the

23 most lucrative 12-month period of operations, minus an amount

24 equal to the initial payment per gaming position paid by the

25 specific licensee. If this calculation results in a negative

26 amount, then the licensee is not entitled to any reimbursement

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1 of fees previously paid. This reconciliation payment may be

2 made in installments over a period of no more than 2 years,

3 subject to Board approval. Any installment payments shall

4 include an annual market interest rate as determined by the

5 Board. All payments by licensees under this subsection (e-15)

6 shall be deposited into the Gaming Facilities Fee Revenue Fund.

7 (e-20) In addition to any other revocation powers granted

8 to the Board under this Act, the Board may revoke the owners

9 license of a licensee, other than the Chicago Casino

10 Development Authority,which fails to begin conducting

11 gambling within 15 months of receipt of the Board's approval of

12 the application if the Board determines that license revocation

13 is in the best interests of the State.

14 (f) The first 10 owners licenses issued under this Act

15 shall permit the holder to own up to 2 riverboats and equipment

16 thereon for a period of 3 years after the effective date of the

17 license. Holders of the first 10 owners licenses must pay the

18 annual license fee for each of the 3 years during which they

19 are authorized to own riverboats.

20 (g) Upon the termination, expiration, or revocation of each

21 of the first 10 licenses, which shall be issued for a 3 year

22 period, all licenses are renewable annually upon payment of the

23 fee and a determination by the Board that the licensee

24 continues to meet all of the requirements of this Act and the

25 Board's rules. However, for licenses renewed on or after May 1,

26 1998, including casino operator licenses,renewal shall be for

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1 a period of 4 years, unless the Board sets a shorter period.

2 Notwithstanding any provision in this subsection (g) to the

3 contrary, any license that is awarded to the Chicago Casino

4 Development Authority shall not expire, but it shall be subject

5 to the provisions of this Act and the rules of the Board.

6 (h) An owners license, except for an owners license issued

7 under subsection (e-5) of this Section, shall entitle the

8 licensee to own up to 2 riverboats.

9 An owners licensee of a casino or riverboat that is located

10 in the City of Chicago pursuant to paragraph (1) of subsection

11 (e-5) of this Section shall limit the number of gaming

12 positions to 4,000 for such owner. An owners licensee

13 authorized under paragraphs (2) through (5) of subsection (e-5)

14 of this Section shall limit the number of gaming positions to

15 1,600 for any such owners license, except as further provided

16 in subsection (h-10) of this Section. An owners licensee

17 authorized under paragraph (6) of subsection (e-5) of this

18 Section ~~A licensee~~ shall limit the number of gaming positions

19 ~~gambling participants~~to 1,200 for~~any~~ such owner. The initial

20 fee for each gaming position obtained on or after the effective

21 date of this amendatory Act of the 100th General Assembly shall

22 be a minimum of $17,500 for licensees not located in Cook

23 County and a minimum of $30,000 for licensees located in Cook

24 County, in addition to the reconciliation payment, as set forth

25 in subsections (e-15) or (h-5) of this Section ~~owners license~~.

26 Each owners licensee shall reserve its gaming positions

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1 within 90 days after issuance of its owners license. The Board

2 may grant an extension to this 90-day period, provided that the

3 owners licensee submits a written request and explanation as to

4 why it is unable to reserve its positions within the 90-day

5 period.

6 A licensee may operate both of its riverboats concurrently,

7 provided that the total number ofgaming positions ~~gambling~~

8 ~~participants~~ on both riverboats does not exceed the limit

9 established pursuant to this subsection and subsection (h-10)

10 of this Section~~1,200~~. Riverboats licensed to operate on the

11 Mississippi River and the Illinois River south of Marshall

12 County shall have an authorized capacity of at least 500

13 persons. Any other riverboat licensed under this Act shall have

14 an authorized capacity of at least 400 persons.

15 (h-5) An owners licensee who conducted gambling operations

16 prior to January 1, 2012 and purchases positions pursuant to

17 subsection (h-10) of this Section on or after the effective

18 date of this amendatory Act of the 100th General Assembly must

19 pay a minimum initial fee of $17,500 per gaming position if the

20 licensee is located outside Cook County and a minimum initial

21 fee of $30,000 per gaming position if the licensee is located

22 in Cook County, as stated in subsection (h) of this Section.

23 These initial fees shall be deposited into the Gaming

24 Facilities Fee Revenue Fund. Additionally, that owners

25 licensee shall make a reconciliation payment 3 years after any

26 additional gaming positions obtained pursuant to subsection

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1 (h-10) begin operating in an amount equal to 75% of the owners

2 licensee's average gross receipts for the most lucrative

3 12-month period of operations minus an amount equal to the

4 initial fee that the owners licensee paid per additional gaming

5 position. For purposes of this subsection (h-5), "average gross

6 receipts" means (i) the increase in adjusted gross receipts for

7 the most lucrative 12-month period of operations over the

8 adjusted gross receipts for 2017, multiplied by (ii) the

9 percentage derived by dividing the number of additional gaming

10 positions that an owners licensee had obtained pursuant to

11 subsection (h-10) by the total number of gaming positions

12 operated by the owners licensee. If this calculation results in

13 a negative amount, then the owners licensee is not entitled to

14 any reimbursement of fees previously paid. This reconciliation

15 payment may be made in installments over a period of no more

16 than 2 years, subject to Board approval. Any installment

17 payments shall include an annual market interest rate as

18 determined by the Board. These reconciliation payments shall be

19 deposited into the Gaming Facilities Fee Revenue Fund.

20 (h-10) For owners licensees authorized under paragraphs

21 (2) through (5) of subsection (e-5) of this Section, the

22 application for such new owners licenses shall ask the

23 applicants to stipulate in their applications the number of

24 gaming positions each applicant would like to reserve, up to

25 1,600 gaming positions. Once the last winning applicant for

26 each of these owners licenses has been selected by the Board,

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1 the Board shall publish the number of gaming positions reserved

2 and unreserved by each winning applicant, shall accept requests

3 for additional gaming positions from any winning applicants or

4 owners licensee who initially reserved 1,600 gaming positions,

5 and shall allocate expeditiously the unreserved gaming

6 positions to such requesting winning applicants or owners

7 licensees in a manner to maximize revenue to the State;

8 provided, however, that no owners licensee (other than the

9 Chicago Casino Development Authority) shall obtain more than

10 2,000 positions total. The Board may allocate any such unused

11 gaming positions through a competitive bidding process

12 pursuant to Section 7.5 of this Act.

13 In the event that not all of the unreserved gaming

14 positions described in the first and second paragraphs of this

15 subsection (h-10) were requested by owners licensees and

16 applicants, then until there are no longer unreserved gaming

17 positions, the Board periodically shall govern a process to

18 allocate the unreserved gaming positions in a manner to

19 maximize revenue to the State.

20 Unreserved gaming positions retained from and allocated to

21 owners licensees by the Board pursuant to this subsection

22 (h-10) shall not be allocated to electronic gaming licensees

23 pursuant to subsection (e) of Section 7.7 of this Act.

24 (i) A licensed owner is authorized to apply to the Board

25 for and, if approved therefor, to receive all licenses from the

26 Board necessary for the operation of a riverboator a casino,

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1 including a liquor license, a license to prepare and serve food

2 for human consumption, and other necessary licenses. All use,

3 occupation and excise taxes which apply to the sale of food and

4 beverages in this State and all taxes imposed on the sale or

5 use of tangible personal property apply to such sales aboard

6 the riverboat or in the casino.

7 (j) The Board may issue or re-issue a license authorizing a

8 riverboat to dock in a municipality or approve a relocation

9 under Section 11.2 only if, prior to the issuance or

10 re-issuance of the license or approval, the governing body of

11 the municipality in which the riverboat will dock has by a

12 majority vote approved the docking of riverboats in the

13 municipality. The Board may issue or re-issue a license

14 authorizing a riverboat to dock in areas of a county outside

15 any municipality or approve a relocation under Section 11.2

16 only if, prior to the issuance or re-issuance of the license or

17 approval, the governing body of the county has by a majority

18 vote approved of the docking of riverboats within such areas.

19 (k) An owners licensee may conduct land-based gambling

20 operations upon approval by the Board.

21 (l) An owners licensee may conduct gaming at a temporary

22 facility pending the construction of a permanent facility or

23 the remodeling or relocation of an existing facility to

24 accommodate gaming participants for up to 24 months after the

25 temporary facility begins to conduct gaming. Upon request by an

26 owners licensee and upon a showing of good cause by the owners

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1 licensee, the Board shall extend the period during which the

2 licensee may conduct gaming at a temporary facility by up to 12

3 months. The Board shall make rules concerning the conduct of

4 gaming from temporary facilities.

5 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

6 (230 ILCS 10/7.3)

7 Sec. 7.3. State conduct of gambling operations.

8 (a) If, after reviewing each application for a re-issued

9 license, the Board determines that the highest prospective

10 total revenue to the State would be derived from State conduct

11 of the gambling operation in lieu of re-issuing the license,

12 the Board shall inform each applicant of its decision. The

13 Board shall thereafter have the authority, without obtaining an

14 owners license, to conductcasino or riverboat gambling

15 operations as previously authorized by the terminated,

16 expired, revoked, or nonrenewed license through a licensed

17 manager selected pursuant to an open and competitive bidding

18 process as set forth in Section 7.5 and as provided in Section

19 7.4.

20 (b) The Board may locate any casino or riverboat on which a

21 gambling operation is conducted by the State in any home dock

22 or otherlocation authorized by Section 3(c) upon receipt of

23 approval from a majority vote of the governing body of the

24 municipality or county, as the case may be, in which the

25 riverboat will dock.

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1 (c) The Board shall have jurisdiction over and shall

2 supervise all gambling operations conducted by the State

3 provided for in this Act and the Chicago Casino Development

4 Authority Actand shall have all powers necessary and proper to

5 fully and effectively execute the provisions of this Actand

6 the Chicago Casino Development Authority Act relating to

7 gambling operations conducted by the State.

8 (d) The maximum number of owners licenses authorized under

9 Section 7~~7(e)~~shall be reduced by one for each instance in

10 which the Board authorizes the State to conduct acasino or

11 riverboat gambling operation under subsection (a) in lieu of

12 re-issuing a license to an applicant under Section 7.1.

13 (Source: P.A. 93-28, eff. 6-20-03.)

14 (230 ILCS 10/7.5)

15 Sec. 7.5. Competitive Bidding. When the Board determines

16 that (i)it will re-issue an owners license pursuant to an open

17 and competitive bidding process, as set forth in Section 7.1,

18 (ii) ~~or that~~it will issue a managers license pursuant to an

19 open and competitive bidding process, as set forth in Section

20 7.4, (iii) it will issue an owners license pursuant to an open

21 and competitive bidding process, as set forth in Section 7.12,

22 or (iv) it will allocate unused gaming positions pursuant to an

23 open and competitive bidding process, as set forth in

24 subsection (h-10) of Section 7, the open and competitive

25 bidding process shall adhere to the following procedures:

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1 (1) The Board shall make applications for owners and

2 managers licenses available to the public and allow a

3 reasonable time for applicants to submit applications to the

4 Board.

5 (2) During the filing period for owners or managers license

6 applications, the Board may retain the services of an

7 investment banking firm to assist the Board in conducting the

8 open and competitive bidding process.

9 (3) After receiving all of the bid proposals, the Board

10 shall open all of the proposals in a public forum and disclose

11 the prospective owners or managers names, venture partners, if

12 any, and, in the case of applicants for owners licenses, the

13 locations of the proposed development sites.

14 (4) The Board shall summarize the terms of the proposals

15 and may make this summary available to the public.

16 (5) The Board shall evaluate the proposals within a

17 reasonable time and select no more than 3 final applicants to

18 make presentations of their proposals to the Board.

19 (6) The final applicants shall make their presentations to

20 the Board on the same day during an open session of the Board.

21 (7) As soon as practicable after the public presentations

22 by the final applicants, the Board, in its discretion, may

23 conduct further negotiations among the 3 final applicants.

24 During such negotiations, each final applicant may increase its

25 license bid or otherwise enhance its bid proposal. At the

26 conclusion of such negotiations, the Board shall select the

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1 winning proposal. In the case of negotiations for an owners

2 license, the Board may, at the conclusion of such negotiations,

3 make the determination allowed under Section 7.3(a).

4 (8) Upon selection of a winning bid, the Board shall

5 evaluate the winning bid within a reasonable period of time for

6 licensee suitability in accordance with all applicable

7 statutory and regulatory criteria.

8 (9) If the winning bidder is unable or otherwise fails to

9 consummate the transaction, (including if the Board determines

10 that the winning bidder does not satisfy the suitability

11 requirements), the Board may, on the same criteria, select from

12 the remaining bidders or make the determination allowed under

13 Section 7.3(a).

14 (Source: P.A. 93-28, eff. 6-20-03.)

15 (230 ILCS 10/7.7 new)

16 Sec. 7.7. Electronic gaming.

17 (a) The General Assembly finds that the horse racing and

18 riverboat gambling industries share many similarities and

19 collectively comprise the bulk of the State's gaming industry.

20 One feature common to both industries is that each is highly

21 regulated by the State of Illinois. The General Assembly

22 further finds, however, that despite their shared features each

23 industry is distinct from the other in that horse racing is and

24 continues to be intimately tied to Illinois' agricultural

25 economy and is, at its core, a spectator sport. This

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1 distinction requires the General Assembly to utilize different

2 methods to regulate and promote the horse racing industry

3 throughout the State. The General Assembly finds that in order

4 to promote live horse racing as a spectator sport in Illinois

5 and the agricultural economy of this State, it is necessary to

6 allow electronic gaming at Illinois race tracks as an ancillary

7 use given the success of other states in increasing live racing

8 purse accounts and improving the quality of horses

9 participating in horse race meetings.

10 (b) The Illinois Gaming Board shall award one electronic

11 gaming license to each person or entity having operating

12 control of a race track that applies under Section 56 of the

13 Illinois Horse Racing Act of 1975, subject to the application

14 and eligibility requirements of this Section. Within 60 days

15 after the effective date of this amendatory Act of the 100th

16 General Assembly, a person or entity having operating control

17 of a race track may submit an application for an electronic

18 gaming license. The application shall be made on such forms as

19 provided by the Board and shall contain such information as the

20 Board prescribes, including, but not limited to, the identity

21 of any race track at which electronic gaming will be conducted,

22 detailed information regarding the ownership and management of

23 the applicant, and detailed personal information regarding the

24 applicant. The application shall specify the number of gaming

25 positions the applicant intends to use and the place where the

26 electronic gaming facility will operate. A person who knowingly

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1 makes a false statement on an application is guilty of a Class

2 A misdemeanor.

3 Each applicant shall disclose the identity of every person

4 or entity having a direct or indirect pecuniary interest

5 greater than 1% in any race track with respect to which the

6 license is sought. If the disclosed entity is a corporation,

7 the applicant shall disclose the names and addresses of all

8 stockholders and directors. If the disclosed entity is a

9 limited liability company, the applicant shall disclose the

10 names and addresses of all members and managers. If the

11 disclosed entity is a partnership, the applicant shall disclose

12 the names and addresses of all partners, both general and

13 limited. If the disclosed entity is a trust, the applicant

14 shall disclose the names and addresses of all beneficiaries.

15 An application shall be filed and considered in accordance

16 with the rules of the Board. Each application for an electronic

17 gaming license shall include a non-refundable application fee

18 of $100,000. In addition, a non-refundable fee of $50,000 shall

19 be paid at the time of filing to defray the costs associated

20 with background investigations conducted by the Board. If the

21 costs of the background investigation exceed $50,000, the

22 applicant shall pay the additional amount to the Board within 7

23 days after a request by the Board. If the costs of the

24 investigation are less than $50,000, the applicant shall

25 receive a refund of the remaining amount. All information,

26 records, interviews, reports, statements, memoranda, or other

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1 data supplied to or used by the Board in the course of this

2 review or investigation of an applicant for an electronic

3 gaming license under this Act shall be privileged and strictly

4 confidential and shall be used only for the purpose of

5 evaluating an applicant for an electronic gaming license or a

6 renewal. Such information, records, interviews, reports,

7 statements, memoranda, or other data shall not be admissible as

8 evidence nor discoverable in any action of any kind in any

9 court or before any tribunal, board, agency or person, except

10 for any action deemed necessary by the Board. The application

11 fee shall be deposited into the Gaming Facilities Fee Revenue

12 Fund.

13 Each applicant shall submit with his or her application, on

14 forms provided by the Board, 2 sets of his or her fingerprints.

15 The Board shall charge each applicant a fee set by the

16 Department of State Police to defray the costs associated with

17 the search and classification of fingerprints obtained by the

18 Board with respect to the applicant's application. This fee

19 shall be paid into the State Police Services Fund.

20 (c) The Board shall determine within 120 days after

21 receiving an application for an electronic gaming license

22 whether to grant an electronic gaming license to the applicant.

23 If the Board does not make a determination within that time

24 period, then the Board shall give a written explanation to the

25 applicant as to why it has not reached a determination and when

26 it reasonably expects to make a determination.

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1 The electronic gaming licensee shall purchase up to the

2 amount of electronic gaming positions authorized under this Act

3 within 120 days after receiving its electronic gaming license.

4 If an electronic gaming licensee is prepared to purchase the

5 electronic gaming positions, but is temporarily prohibited

6 from doing so by order of a court of competent jurisdiction or

7 the Board, then the 120-day period is tolled until a resolution

8 is reached.

9 An electronic gaming license shall authorize its holder to

10 conduct gaming under this Act at its racetracks on the same

11 days of the year and hours of the day that owner licenses are

12 allowed to operate under approval of the Board.

13 A license to conduct electronic gaming and any renewal of

14 an electronic gaming license shall authorize electronic gaming

15 for a period of 4 years. The fee for the issuance or renewal of

16 an electronic gaming license shall be $100,000.

17 (d) To be eligible to conduct electronic gaming, a person

18 or entity having operating control of a race track must (i)

19 obtain an electronic gaming license, (ii) hold an organization

20 license under the Illinois Horse Racing Act of 1975, (iii) hold

21 an inter-track wagering license, (iv) pay an initial fee of

22 $30,000 per gaming position from electronic gaming licensees

23 where electronic gaming is conducted in Cook County and $17,500

24 for electronic gaming licensees where electronic gaming is

25 located outside of Cook County before beginning to conduct

26 electronic gaming plus make the reconciliation payment

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1 required under subsection (i), (v) conduct at least 240 live

2 races at each track per year or for a licensee that is only

3 authorized 350 gaming positions pursuant to subsection (d) of

4 Section 7.7 of this Act, have a fully operational facility

5 running at least 96 live races over a period of at least 15

6 days per year until such time as the total number of gaming

7 positions is increased to 900, (vi) meet the requirements of

8 subsection (a) of Section 56 of the Illinois Horse Racing Act

9 of 1975, (vii) for organization licensees conducting

10 standardbred race meetings that had an open backstretch in

11 2009, keep backstretch barns and dormitories open and

12 operational year-round unless a lesser schedule is mutually

13 agreed to by the organization licensee and the horsemen's

14 association racing at that organization licensee's race

15 meeting, (viii) for organization licensees conducting

16 thoroughbred race meetings, the organization licensee must

17 maintain accident medical expense liability insurance coverage

18 of $1,000,000 for jockeys, and (ix) meet all other requirements

19 of this Act that apply to owners licensees. Only those persons

20 or entities (or its successors or assigns) that had operating

21 control of a race track and held an inter-track wagering

22 license authorized by the Illinois Racing Board in 2009 are

23 eligible.

24 An electronic gaming licensee may enter into a joint

25 venture with a licensed owner to own, manage, conduct, or

26 otherwise operate the electronic gaming licensee's electronic

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1 gaming facilities, unless the electronic gaming licensee has a

2 parent company or other affiliated company that is, directly or

3 indirectly, wholly owned by a parent company that is also

4 licensed to conduct electronic gaming, casino gaming, or their

5 equivalent in another state.

6 All payments by licensees under this subsection (c) shall

7 be deposited into the Gaming Facilities Fee Revenue Fund.

8 (e) A person or entity is ineligible to receive an

9 electronic gaming license if:

10 (1) the person or entity has been convicted of a felony

11 under the laws of this State, any other state, or the

12 United States, including a conviction under the Racketeer

13 Influenced and Corrupt Organizations Act;

14 (2) the person or entity has been convicted of any

15 violation of Article 28 of the Criminal Code of 2012, or

16 substantially similar laws of any other jurisdiction;

17 (3) the person or entity has submitted an application

18 for a license under this Act that contains false

19 information;

20 (4) the person is a member of the Board;

21 (5) a person defined in (1), (2), (3), or (4) of this

22 subsection (e) is an officer, director, or managerial

23 employee of the entity;

24 (6) the person or entity employs a person defined in

25 (1), (2), (3), or (4) of this subsection (e) who

26 participates in the management or operation of gambling

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1 operations authorized under this Act; or

2 (7) a license of the person or entity issued under this

3 Act or a license to own or operate gambling facilities in

4 any other jurisdiction has been revoked.

5 (f) The Board may approve electronic gaming positions

6 statewide as provided in this Section. The authority to operate

7 electronic gaming positions under this Section shall be

8 allocated as follows: up to 1,200 gaming positions for any

9 electronic gaming licensee in Cook County whose electronic

10 gaming license originates with an organization licensee that

11 conducted live racing in calendar year 2016; up to 900 gaming

12 positions for any electronic gaming licensee outside of Cook

13 County whose electronic gaming license originates with an

14 organization licensee that conducted live racing in calendar

15 year 2016; and up to 350 gaming positions for any electronic

16 gaming licensee whose electronic gaming license originates

17 with an organization licensee that did not conduct live racing

18 in calendar year 2010, which shall increase to 900 gaming

19 positions in the calendar year following the year in which the

20 electronic gaming licensee conducts 96 live races.

21 (g) Each applicant for an electronic gaming license shall

22 specify in its application for licensure the number of gaming

23 positions it will operate, up to the applicable limitation set

24 forth in subsection (f) of this Section. Any unreserved gaming

25 positions that are not specified shall be forfeited and

26 retained by the Board. For the purposes of this subsection (g),

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1 an electronic gaming licensee that did not conduct live racing

2 in 2010 may reserve up to 900 positions and shall not be

3 penalized under this Section for not operating those positions

4 until it meets the requirements of subsection (f) of this

5 Section, but such licensee shall not request unreserved gaming

6 positions under this subsection (g) until its 900 positions are

7 all operational.

8 Thereafter, the Board shall publish the number of

9 unreserved electronic gaming positions and shall accept

10 requests for additional positions from any electronic gaming

11 licensee that initially reserved all of the positions that were

12 offered. The Board shall allocate expeditiously the unreserved

13 electronic gaming positions to requesting electronic gaming

14 licensees in a manner that maximizes revenue to the State. The

15 Board may allocate any such unused electronic gaming positions

16 pursuant to an open and competitive bidding process, as

17 provided under Section 7.5 of this Act. This process shall

18 continue until all unreserved gaming positions have been

19 purchased. All positions obtained pursuant to this process and

20 all positions the electronic gaming licensee specified it would

21 operate in its application must be in operation within 18

22 months after they were obtained or the electronic gaming

23 licensee forfeits the right to operate those positions, but is

24 not entitled to a refund of any fees paid. The Board may, after

25 holding a public hearing, grant extensions so long as the

26 electronic gaming licensee is working in good faith to make the

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1 positions operational. The extension may be for a period of 6

2 months. If, after the period of the extension, the electronic

3 gaming licensee has not made the positions operational, then

4 another public hearing must be held by the Board before it may

5 grant another extension.

6 Unreserved gaming positions retained from and allocated to

7 electronic gaming licensees by the Board pursuant to this

8 subsection (g) shall not be allocated to owners licensees

9 pursuant to subsection (h-10) of Section 7 of this Act.

10 For the purpose of this subsection (g), the unreserved

11 gaming positions for each electronic gaming licensee shall be

12 the applicable limitation set forth in subsection (f) of this

13 Section, less the number of reserved gaming positions by such

14 electronic gaming licensee, and the total unreserved gaming

15 positions shall be the aggregate of the unreserved gaming

16 positions for all electronic gaming licensees.

17 (h) Subject to the approval of the Illinois Gaming Board,

18 an electronic gaming licensee may make modification or

19 additions to any existing buildings and structures to comply

20 with the requirements of this Act. The Illinois Gaming Board

21 shall make its decision after consulting with the Illinois

22 Racing Board. In no case, however, shall the Illinois Gaming

23 Board approve any modification or addition that alters the

24 grounds of the organization licensee such that the act of live

25 racing is an ancillary activity to electronic gaming.

26 Electronic gaming may take place in existing structures where

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1 inter-track wagering is conducted at the race track or a

2 facility within 300 yards of the race track in accordance with

3 the provisions of this Act and the Illinois Horse Racing Act of

4 1975.

5 (i) An electronic gaming licensee may conduct electronic

6 gaming at a temporary facility pending the construction of a

7 permanent facility or the remodeling or relocation of an

8 existing facility to accommodate electronic gaming

9 participants for up to 24 months after the temporary facility

10 begins to conduct electronic gaming. Upon request by an

11 electronic gaming licensee and upon a showing of good cause by

12 the electronic gaming licensee, the Board shall extend the

13 period during which the licensee may conduct electronic gaming

14 at a temporary facility by up to 12 months. The Board shall

15 make rules concerning the conduct of electronic gaming from

16 temporary facilities.

17 Electronic gaming may take place in existing structures

18 where inter-track wagering is conducted at the race track or a

19 facility within 300 yards of the race track in accordance with

20 the provisions of this Act and the Illinois Horse Racing Act of

21 1975.

22 (j) The Illinois Gaming Board must adopt emergency rules in

23 accordance with Section 5-45 of the Illinois Administrative

24 Procedure Act as necessary to ensure compliance with the

25 provisions of this amendatory Act of the 100th General Assembly

26 concerning electronic gaming. The adoption of emergency rules

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

2 necessary for the public interest, safety, and welfare.

3 (k) Each electronic gaming licensee who obtains electronic

4 gaming positions must make a reconciliation payment 3 years

5 after the date the electronic gaming licensee begins operating

6 the positions in an amount equal to 75% of the difference

7 between its adjusted gross receipts from electronic gaming and

8 amounts paid to its purse accounts pursuant to item (1) of

9 subsection (b) of Section 56 of the Illinois Horse Racing Act

10 of 1975 for the 12-month period for which such difference was

11 the largest, minus an amount equal to the initial per position

12 fee paid by the electronic gaming licensee. If this calculation

13 results in a negative amount, then the electronic gaming

14 licensee is not entitled to any reimbursement of fees

15 previously paid. This reconciliation payment may be made in

16 installments over a period of no more than 2 years, subject to

17 Board approval. Any installment payments shall include an

18 annual market interest rate as determined by the Board.

19 All payments by licensees under this subsection (i) shall

20 be deposited into the Gaming Facilities Fee Revenue Fund.

21 (l) As soon as practical after a request is made by the

22 Illinois Gaming Board, to minimize duplicate submissions by the

23 applicant, the Illinois Racing Board must provide information

24 on an applicant for an electronic gaming license to the

25 Illinois Gaming Board.

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1 (230 ILCS 10/7.8 new)

2 Sec. 7.8. Home rule. The regulation and licensing of

3 electronic gaming and electronic gaming licensees are

4 exclusive powers and functions of the State. A home rule unit

5 may not regulate or license electronic gaming or electronic

6 gaming licensees. This Section is a denial and limitation of

7 home rule powers and functions under subsection (h) of Section

8 6 of Article VII of the Illinois Constitution.

9 (230 ILCS 10/7.9 new)

10 Sec. 7.9. Casino operator license.

11 (a) A qualified person may apply to the Board for a casino

12 operator license to operate and manage any gambling operation

13 conducted by the Authority. The application shall be made on

14 forms provided by the Board and shall contain such information

15 as the Board prescribes, including but not limited to

16 information required in Sections 6(a), (b), and (c) and

17 information relating to the applicant's proposed price to

18 manage the Authority's gambling operations and to provide the

19 casino, gambling equipment, and supplies necessary to conduct

20 Authority gambling operations. The application shall also

21 include a non-refundable application fee of $100,000. This

22 application fee shall be deposited into the Gaming Facilities

23 Fee Revenue Fund.

24 (b) A person or entity is ineligible to receive a casino

25 operator license if:

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1 (1) the person has been convicted of a felony under the

2 laws of this State, any other state, or the United States;

3 (2) the person has been convicted of any violation of

4 Article 28 of the Criminal Code of 2012, or substantially

5 similar laws of any other 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 or the Chicago

10 Casino Development Board or the person is an official or

11 employee of the Chicago Casino Development Authority or the

12 City of Chicago;

13 (5) a person defined in (1), (2), (3), or (4) is an

14 officer, director, or managerial employee of the entity;

15 (6) the entity employs a person defined in (1), (2),

16 (3), or (4) who participates in the management or operation

17 of gambling operations authorized under this Act; or

18 (7) a license of the person or entity issued under this

19 Act, or a license to own or operate gambling facilities in

20 any other jurisdiction, has been revoked.

21 (c) In determining whether to grant a casino operator

22 license, the Board shall consider:

23 (1) the character, reputation, experience and

24 financial integrity of the applicants and of any other or

25 separate person that either:

26 (A) controls, directly or indirectly, such

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1 applicant, or

2 (B) is controlled, directly or indirectly, by such

3 applicant or by a person which controls, directly or

4 indirectly, such applicant;

5 (2) the facilities or proposed facilities for the

6 conduct of gambling;

7 (3) the preference of the municipality in which the

8 licensee will operate;

9 (4) the extent to which the ownership of the applicant

10 reflects the diversity of the State by including minority

11 persons and females and the good faith affirmative action

12 plan of each applicant to recruit, train, and upgrade

13 minority persons and females in all employment

14 classifications;

15 (5) the financial ability of the applicant to purchase

16 and maintain adequate liability and casualty insurance;

17 (6) whether the applicant has adequate capitalization

18 to provide and maintain, for the duration of a license, a

19 casino; and

20 (7) the extent to which the applicant exceeds or meets

21 other standards for the issuance of a casino operator

22 license that the Board may adopt by rule.

23 (d) Each applicant shall submit with his or her

24 application, on forms prescribed by the Board, 2 sets of his or

25 her fingerprints. The Board shall charge each applicant a fee

26 set by the Department of State Police to defray the costs

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1 associated with the search and classification of fingerprints

2 obtained by the Board with respect to the applicant's

3 application. This fee shall be paid into the State Police

4 Services Fund.

5 (e) A person who knowingly makes a false statement on an

6 application is guilty of a Class A misdemeanor.

7 (f) The Board shall charge each applicant a non-refundable

8 fee of $50,000 to defray the costs associated with the

9 background investigation conducted by the Board. This fee shall

10 be exclusive of any other fee or fees charged in connection

11 with an application for and, if applicable, the issuance of, a

12 casino operator license. If the costs of the investigation

13 exceed $50,000, the Board shall immediately notify the

14 applicant of the additional amount owed, payment of which must

15 be submitted to the Board within 7 days after such

16 notification. All information, records, interviews, reports,

17 statements, memoranda, or other data supplied to or used by the

18 Board in the course of its review or investigation of an

19 application for a license or a renewal under this Act shall be

20 privileged and strictly confidential and shall be used only for

21 the purpose of evaluating an applicant for a license or a

22 renewal. Such information, records, interviews, reports,

23 statements, memoranda, or other data shall not be admissible as

24 evidence, nor discoverable in any action of any kind in any

25 court or before any tribunal, board, agency, or person, except

26 for any action deemed necessary by the Board.

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1 (g) The casino operator license shall be issued only upon

2 proof that the applicant has entered into a labor peace

3 agreement with each labor organization that is actively engaged

4 in representing and attempting to represent casino and

5 hospitality industry workers in this State. The labor peace

6 agreement must be a valid and enforceable agreement under 29

7 U.S.C. 185 that protects the city's and State's revenues from

8 the operation of the casino facility by prohibiting the labor

9 organization and its members from engaging in any picketing,

10 work stoppages, boycotts, or any other economic interference

11 with the casino facility for at least the first 5 years of the

12 casino license and must cover all operations at the casino

13 facility that are conducted by lessees or tenants or under

14 management agreements.

15 (h) The casino operator license shall be for a term of 4

16 years, shall be renewable by the Board, and shall contain such

17 terms and provisions as the Board deems necessary to protect or

18 enhance the credibility and integrity of State gambling

19 operations, achieve the highest prospective total revenue to

20 the State, and otherwise serve the interests of the citizens of

21 Illinois. The Board may suspend, restrict, or revoke the

22 license:

23 (1) for violation of any provision of this Act;

24 (2) for violation of any rules of the Board;

25 (3) for any cause which, if known to the Board, would

26 have disqualified the applicant from receiving the

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1 license; or

2 (4) for any other just cause.

3 (230 ILCS 10/7.10 new)

4 Sec. 7.10. Diversity program.

5 (a) Each owners licensee, electronic gaming licensee,

6 casino operator licensee, and suppliers licensee shall

7 establish and maintain a diversity program to ensure

8 non-discrimination in the award and administration of

9 contracts. The programs shall establish goals of awarding not

10 less than 20% of the annual dollar value of all contracts,

11 purchase orders, or other agreements to minority-owned

12 businesses and 5% of the annual dollar value of all contracts

13 to female-owned businesses.

14 (b) Each owners licensee, electronic gaming licensee,

15 casino operator licensee, and suppliers licensee shall

16 establish and maintain a diversity program designed to promote

17 equal opportunity for employment. The program shall establish

18 hiring goals as the Board and each licensee determines

19 appropriate. The Board shall monitor the progress of the gaming

20 licensee's progress with respect to the program's goals.

21 (c) No later than May 31 of each year, each licensee shall

22 report to the Board (1) the number of respective employees and

23 the number of its respective employees who have designated

24 themselves as members of a minority group and gender and (2)

25 the total goals achieved under subsection (a) of this Section

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1 as a percentage of the total contracts awarded by the license.

2 In addition, all licensees shall submit a report with respect

3 to the minority-owned and female-owned businesses program

4 created in this Section to the Board.

5 (d) When considering whether to re-issue or renew a license

6 to an owners licensee, electronic gaming licensee, casino

7 operator licensee, or suppliers licensee, the Board shall take

8 into account the licensee's success in complying with the

9 provisions of this Section. If an owners licensee, electronic

10 gaming licensee, casino operator licensee, or suppliers

11 licensee has not satisfied the goals contained in this Section,

12 the Board shall require a written explanation as to why the

13 licensee is not in compliance and shall require the licensee to

14 file multi-year metrics designed to achieve compliance with the

15 provisions by the next renewal period, consistent with State

16 and federal law.

17 (230 ILCS 10/7.11 new)

18 Sec. 7.11. Annual report on diversity.

19 (a) Each licensee that receives a license under Sections 7,

20 7.1, and 7.7 shall execute and file a report with the Board no

21 later than December 31 of each year that shall contain, but not

22 be limited to, the following information:

23 (i) a good faith affirmative action plan to recruit,

24 train, and upgrade minority persons, females, and persons

25 with a disability in all employment classifications;

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1 (ii) the total dollar amount of contracts that were

2 awarded to businesses owned by minority persons, females,

3 and persons with a disability;

4 (iii) the total number of businesses owned by minority

5 persons, females, and persons with a disability that were

6 utilized by the licensee;

7 (iv) the utilization of businesses owned by minority

8 persons, females, and persons with disabilities during the

9 preceding year; and

10 (v) the outreach efforts used by the licensee to

11 attract investors and businesses consisting of minority

12 persons, females, and persons with a disability.

13 (b) The Board shall forward a copy of each licensee's

14 annual reports to the General Assembly no later than February 1

15 of each year.

16 (230 ILCS 10/7.12 new)

17 Sec. 7.12. Issuance of new owners licenses.

18 (a) Except for the owners license issued to the Chicago

19 Casino Development Authority, owners licenses newly authorized

20 pursuant to this amendatory Act of the 100th General Assembly

21 may be issued by the Board to a qualified applicant pursuant to

22 an open and competitive bidding process, as set forth in

23 Section 7.5, and subject to the maximum number of authorized

24 licenses set forth in subsection (e-5) of Section 7 of this

25 Act.

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1 (b) To be a qualified applicant, a person or entity may not

2 be ineligible to receive an owners license under subsection (a)

3 of Section 7 of this Act and must submit an application for an

4 owners license that complies with Section 6 of this Act.

5 (c) In determining whether to grant an owners license to an

6 applicant, the Board shall consider all of the factors set

7 forth in subsections (b) and (e-10) of Section 7 of this Act,

8 as well as the amount of the applicant's license bid. The Board

9 may grant the owners license to an applicant that has not

10 submitted the highest license bid, but if it does not select

11 the highest bidder, the Board shall issue a written decision

12 explaining why another applicant was selected and identifying

13 the factors set forth in subsections (b) and (e-10) of Section

14 7 of this Act that favored the winning bidder.

15 (230 ILCS 10/7.13 new)

16 Sec. 7.13. Environmental standards. All permanent

17 casinos, riverboats, and electronic gaming facilities shall

18 consist of buildings that are certified as meeting the U.S.

19 Green Building Council's Leadership in Energy and

20 Environmental Design standards. The provisions of this Section

21 apply to a holder of an owners license, casino operator

22 license, or electronic gaming license that (i) begins

23 operations on or after January 1, 2017 or (ii) relocates its

24 facilities on or after the effective date of this amendatory

25 Act of the 100th General Assembly.

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1 (230 ILCS 10/8) (from Ch. 120, par. 2408)

2 Sec. 8. Suppliers licenses.

3 (a) The Board may issue a suppliers license to such

4 persons, firms or corporations which apply therefor upon the

5 payment of a non-refundable application fee set by the Board,

6 upon a determination by the Board that the applicant is

7 eligible for a suppliers license and upon payment of a $5,000

8 annual license fee.

9 (b) The holder of a suppliers license is authorized to sell

10 or lease, and to contract to sell or lease, gambling equipment

11 and supplies to any licensee involved in the ownership or

12 management of gambling operations.

13 (c) Gambling supplies and equipment may not be distributed

14 unless supplies and equipment conform to standards adopted by

15 rules of the Board.

16 (d) A person, firm or corporation is ineligible to receive

17 a suppliers license if:

18 (1) the person has been convicted of a felony under the

19 laws of this State, any other state, or the United States;

20 (2) the person has been convicted of any violation of

21 Article 28 of the Criminal Code of 1961 or the Criminal

22 Code of 2012, or substantially similar laws of any other

23 jurisdiction;

24 (3) the person has submitted an application for a

25 license under this Act which contains false information;

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1 (4) the person is a member of the Board;

2 (5) the entity ~~firm or corporation~~ is one in which a

3 person defined in (1), (2), (3) or (4), is an officer,

4 director or managerial employee;

5 (6) the firm or corporation employs a person who

6 participates in the management or operation of riverboat

7 gambling authorized under this Act or the Chicago Casino

8 Development Authority Act;

9 (7) the license of the person, firm or corporation

10 issued under this Actor the Chicago Casino Development

11 Authority Act, or a license to own or operate gambling

12 facilities in any other jurisdiction, has been revoked.

13 (e) Any person that supplies any equipment, devices, or

14 supplies to a licensed riverboat gambling operationor casino

15 or electronic gaming operationmust first obtain a suppliers

16 license. A supplier shall furnish to the Board a list of all

17 equipment, devices and supplies offered for sale or lease in

18 connection with gambling games authorized under this Act. A

19 supplier shall keep books and records for the furnishing of

20 equipment, devices and supplies to gambling operations

21 separate and distinct from any other business that the supplier

22 might operate. A supplier shall file a quarterly return with

23 the Board listing all sales and leases. A supplier shall

24 permanently affix its name or a distinctive logo or other mark

25 or design element identifying the manufacturer or supplier to

26 all its equipment, devices, and supplies, except gaming chips

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1 without a value impressed, engraved, or imprinted on it, for

2 gambling operations. The Board may waive this requirement for

3 any specific product or products if it determines that the

4 requirement is not necessary to protect the integrity of the

5 game. Items purchased from a licensed supplier may continue to

6 be used even though the supplier subsequently changes its name,

7 distinctive logo, or other mark or design element; undergoes a

8 change in ownership; or ceases to be licensed as a supplier for

9 any reason. Any supplier's equipment, devices or supplies which

10 are used by any person in an unauthorized gambling operation

11 shall be forfeited to the State. A holder of an owners license

12 or an electronic gaming license ~~A licensed owner~~ may own its

13 own equipment, devices and supplies. Each holder of an owners

14 license or an electronic gaming license under the Act shall

15 file an annual report listing its inventories of gambling

16 equipment, devices and supplies.

17 (f) Any person who knowingly makes a false statement on an

18 application is guilty of a Class A misdemeanor.

19 (g) Any gambling equipment, devices and supplies provided

20 by any licensed supplier may either be repaired on the

21 riverboat, in the casino, or at the electronic gaming facility

22 orremoved from the riverboat, casino, or electronic gaming

23 facility to a ~~an on-shore~~ facility owned by the holder of an

24 owners licenseor electronic gaming license for repair.

25 (Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;

26 98-756, eff. 7-16-14.)

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1 (230 ILCS 10/9) (from Ch. 120, par. 2409)

2 Sec. 9. Occupational licenses.

3 (a) The Board may issue an occupational license to an

4 applicant upon the payment of a non-refundable fee set by the

5 Board, upon a determination by the Board that the applicant is

6 eligible for an occupational license and upon payment of an

7 annual license fee in an amount to be established. To be

8 eligible for an occupational license, an applicant must:

9 (1) be at least 21 years of age if the applicant will

10 perform any function involved in gaming by patrons. Any

11 applicant seeking an occupational license for a non-gaming

12 function shall be at least 18 years of age;

13 (2) not have been convicted of a felony offense, a

14 violation of Article 28 of the Criminal Code of 1961 or the

15 Criminal Code of 2012, or a similar statute of any other

16 jurisdiction;

17 (2.5) not have been convicted of a crime, other than a

18 crime described in item (2) of this subsection (a),

19 involving dishonesty or moral turpitude, except that the

20 Board may, in its discretion, issue an occupational license

21 to a person who has been convicted of a crime described in

22 this item (2.5) more than 10 years prior to his or her

23 application and has not subsequently been convicted of any

24 other crime;

25 (3) have demonstrated a level of skill or knowledge

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1 which the Board determines to be necessary in order to

2 operate gambling aboard a riverboat, in a casino, or at an

3 electronic gaming facility; and

4 (4) have met standards for the holding of an

5 occupational license as adopted by rules of the Board. Such

6 rules shall provide that any person or entity seeking an

7 occupational license to manage gambling operationsunder

8 this Act or the Chicago Casino Development Authority Act

9 ~~hereunder~~ shall be subject to background inquiries and

10 further requirements similar to those required of

11 applicants for an owners license. Furthermore, such rules

12 shall provide that each such entity shall be permitted to

13 manage gambling operations for only one licensed owner.

14 (b) Each application for an occupational license shall be

15 on forms prescribed by the Board and shall contain all

16 information required by the Board. The applicant shall set

17 forth in the application: whether he has been issued prior

18 gambling related licenses; whether he has been licensed in any

19 other state under any other name, and, if so, such name and his

20 age; and whether or not a permit or license issued to him in

21 any other state has been suspended, restricted or revoked, and,

22 if so, for what period of time.

23 (c) Each applicant shall submit with his application, on

24 forms provided by the Board, 2 sets of his fingerprints. The

25 Board shall charge each applicant a fee set by the Department

26 of State Police to defray the costs associated with the search

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1 and classification of fingerprints obtained by the Board with

2 respect to the applicant's application. These fees shall be

3 paid into the State Police Services Fund.

4 (d) The Board may in its discretion refuse an occupational

5 license to any person: (1) who is unqualified to perform the

6 duties required of such applicant; (2) who fails to disclose or

7 states falsely any information called for in the application;

8 (3) who has been found guilty of a violation of this Actor the

9 Chicago Casino Development Authority Act or whose prior

10 gambling related license or application therefor has been

11 suspended, restricted, revoked or denied for just cause in any

12 other state; or (4) for any other just cause.

13 (e) The Board may suspend, revoke or restrict any

14 occupational licensee: (1) for violation of any provision of

15 this Act; (2) for violation of any of the rules and regulations

16 of the Board; (3) for any cause which, if known to the Board,

17 would have disqualified the applicant from receiving such

18 license; or (4) for default in the payment of any obligation or

19 debt due to the State of Illinois; or (5) for any other just

20 cause.

21 (f) A person who knowingly makes a false statement on an

22 application is guilty of a Class A misdemeanor.

23 (g) Any license issued pursuant to this Section shall be

24 valid for a period of one year from the date of issuance.

25 (h) Nothing in this Act shall be interpreted to prohibit a

26 licensed owneror electronic gaming licensee from entering into

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1 an agreement with a public community college or a school

2 approved under the Private Business and Vocational Schools Act

3 of 2012 for the training of any occupational licensee. Any

4 training offered by such a school shall be in accordance with a

5 written agreement between the licensed owner or electronic

6 gaming licensee and the school.

7 (i) Any training provided for occupational licensees may be

8 conducted eitherat the site of the gambling facility ~~on the~~

9 ~~riverboat~~ or at a school with which a licensed owner or

10 electronic gaming licenseehas entered into an agreement

11 pursuant to subsection (h).

12 (Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;

13 97-1150, eff. 1-25-13.)

14 (230 ILCS 10/11) (from Ch. 120, par. 2411)

15 Sec. 11. Conduct of gambling. Gambling may be conducted by

16 licensed owners or licensed managers on behalf of the State

17 aboard riverboats. Gambling may be conducted by electronic

18 gaming licensees at electronic gaming facilities. Gambling may

19 be conducted by a casino operator licensee at a casino.

20 Gambling authorized under this Section is ~~,~~subject to the

21 following standards:

22 (1) A licensee may conduct riverboat gambling

23 authorized under this Act regardless of whether it conducts

24 excursion cruises. A licensee may permit the continuous

25 ingress and egress of patrons ~~passengers~~ on a riverboat not

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1 used for excursion cruises for the purpose of gambling.

2 Excursion cruises shall not exceed 4 hours for a round

3 trip. However, the Board may grant express approval for an

4 extended cruise on a case-by-case basis.

5 (2) (Blank).

6 (3) Minimum and maximum wagers on games shall be set by

7 the licensee.

8 (4) Agents of the Board and the Department of State

9 Police may board and inspect any riverboat, enter and

10 inspect any portion of a casino, or enter and inspect any

11 portion of an electronic gaming facility at any time for

12 the purpose of determining whether this Actor the Chicago

13 Casino Development Authority Act is being complied with.

14 Every riverboat, if under way and being hailed by a law

15 enforcement officer or agent of the Board, must stop

16 immediately and lay to.

17 (5) Employees of the Board shall have the right to be

18 present on the riverboator in the casino or on adjacent

19 facilities under the control of the licensee and at the

20 electronic gaming facility under the control of the

21 electronic gaming licensee.

22 (6) Gambling equipment and supplies customarily used

23 in conducting riverboator casino gambling or electronic

24 gaming must be purchased or leased only from suppliers

25 licensed for such purpose under this Act. The Board may

26 approve the transfer, sale, or lease of gambling equipment

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1 and supplies by a licensed owner from or to an affiliate of

2 the licensed owner as long as the gambling equipment and

3 supplies were initially acquired from a supplier licensed

4 in Illinois.

5 (7) Persons licensed under this Act or the Chicago

6 Casino Development Authority Act shall permit no form of

7 wagering on gambling games except as permitted by this Act.

8 (8) Wagers may be received only from a person present

9 on a licensed riverboat, in a casino, or at an electronic

10 gaming facility. No person present on a licensed riverboat,

11 in a casino, or at an electronic gaming facility shall

12 place or attempt to place a wager on behalf of another

13 person who is not present on the riverboat, in a casino, or

14 at the electronic gaming facility.

15 (9) Wagering, including electronic gaming, shall not

16 be conducted with money or other negotiable currency.

17 (10) A person under age 21 shall not be permitted on an

18 area of a riverboator casino where gambling is being

19 conducted or at an electronic gaming facility where

20 gambling is being conducted, except for a person at least

21 18 years of age who is an employee of the riverboat or

22 casino gambling operation or electronic gaming operation.

23 No employee under age 21 shall perform any function

24 involved in gambling by the patrons. No person under age 21

25 shall be permitted to make a wager under this Actor the

26 Chicago Casino Development Authority Act, and any winnings

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1 that are a result of a wager by a person under age 21,

2 whether or not paid by a licensee, shall be treated as

3 winnings for the privilege tax purposes, confiscated, and

4 forfeited to the State and deposited into the Education

5 Assistance Fund.

6 (11) Gambling excursion cruises are permitted only

7 when the waterway for which the riverboat is licensed is

8 navigable, as determined by the Board in consultation with

9 the U.S. Army Corps of Engineers. This paragraph (11) does

10 not limit the ability of a licensee to conduct gambling

11 authorized under this Act when gambling excursion cruises

12 are not permitted.

13 (12) All tokens, chips or electronic cards used to make

14 wagers must be purchased(i) from a licensed owner or

15 manager, in the case of a riverboat, either aboard a

16 riverboat or at an onshore facility which has been approved

17 by the Board and which is located where the riverboat

18 docks, (ii) in the case of a casino, from a licensed owner

19 or licensed casino operator at the casino, or (iii) from an

20 electronic gaming licensee at the electronic gaming

21 facility. The tokens, chips or electronic cards may be

22 purchased by means of an agreement under which the owner,

23 ~~or~~ manager, or licensed casino operatorextends credit to

24 the patron. Such tokens, chips or electronic cards may be

25 used while aboard the riverboat, in the casino, or at the

26 electronic gaming facility only for the purpose of making

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1 wagers on gambling games.

2 (13) Notwithstanding any other Section of this Act or

3 the Chicago Casino Development Authority Act, in addition

4 to the other licenses authorized under this Actor the

5 Chicago Casino Development Authority Act, the Board may

6 issue special event licenses allowing persons who are not

7 otherwise licensed to conduct riverboat gambling to

8 conduct such gambling on a specified date or series of

9 dates. Riverboat gambling under such a license may take

10 place on a riverboat not normally used for riverboat

11 gambling. The Board shall establish standards, fees and

12 fines for, and limitations upon, such licenses, which may

13 differ from the standards, fees, fines and limitations

14 otherwise applicable under this Act or the Chicago Casino

15 Development Authority Act. All such fees shall be deposited

16 into the State Gaming Fund. All such fines shall be

17 deposited into the Education Assistance Fund, created by

18 Public Act 86-0018, of the State of Illinois.

19 (14) In addition to the above, gambling must be

20 conducted in accordance with all rules adopted by the

21 Board.

22 (Source: P.A. 96-1392, eff. 1-1-11.)

23 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)

24 Sec. 11.1. Collection of amounts owing under credit

25 agreements. Notwithstanding any applicable statutory provision

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1 to the contrary, a licensed owner, licensed ~~or~~ manager,

2 licensed casino operator, or electronic gaming licensee who

3 extends credit to a ~~riverboat~~ gambling patron or an electronic

4 gaming patronpursuant to Section 11 (a) (12) of this Act is

5 expressly authorized to institute a cause of action to collect

6 any amounts due and owing under the extension of credit, as

7 well as the licensed owner's, licensed ~~or~~ manager's, licensed

8 casino operator's, or electronic gaming licensee's costs,

9 expenses and reasonable attorney's fees incurred in

10 collection.

11 (Source: P.A. 93-28, eff. 6-20-03.)

12 (230 ILCS 10/12) (from Ch. 120, par. 2412)

13 Sec. 12. Admission tax; fees.

14 (a) A tax is hereby imposed upon admissions to riverboat

15 and casino gambling facilities ~~riverboats~~operated by licensed

16 owners authorized pursuant to this Act and the Chicago Casino

17 Development Authority Act. Until July 1, 2002, the rate is $2

18 per person admitted. From July 1, 2002 until July 1, 2003, the

19 rate is $3 per person admitted. From July 1, 2003 until August

20 23, 2005 (the effective date of Public Act 94-673), for a

21 licensee that admitted 1,000,000 persons or fewer in the

22 previous calendar year, the rate is $3 per person admitted; for

23 a licensee that admitted more than 1,000,000 but no more than

24 2,300,000 persons in the previous calendar year, the rate is $4

25 per person admitted; and for a licensee that admitted more than

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1 2,300,000 persons in the previous calendar year, the rate is $5

2 per person admitted. Beginning on August 23, 2005 (the

3 effective date of Public Act 94-673), for a licensee that

4 admitted 1,000,000 persons or fewer in calendar year 2004, the

5 rate is $2 per person admitted, and for all other licensees,

6 including licensees that were not conducting gambling

7 operations in 2004, the rate is $3 per person admitted. This

8 admission tax is imposed upon the licensed owner conducting

9 gambling.

10 (1) The admission tax shall be paid for each admission,

11 except that a person who exits a riverboat gambling

12 facility and reenters that riverboat gambling facility

13 within the same gaming day shall be subject only to the

14 initial admission tax.

15 (2) (Blank).

16 (3) The riverboat licensee may issue tax-free passes to

17 actual and necessary officials and employees of the

18 licensee or other persons actually working on the

19 riverboat.

20 (4) The number and issuance of tax-free passes is

21 subject to the rules of the Board, and a list of all

22 persons to whom the tax-free passes are issued shall be

23 filed with the Board.

24 (a-5) A fee is hereby imposed upon admissions operated by

25 licensed managers on behalf of the State pursuant to Section

26 7.3 at the rates provided in this subsection (a-5). For a

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1 licensee that admitted 1,000,000 persons or fewer in the

2 previous calendar year, the rate is $3 per person admitted; for

3 a licensee that admitted more than 1,000,000 but no more than

4 2,300,000 persons in the previous calendar year, the rate is $4

5 per person admitted; and for a licensee that admitted more than

6 2,300,000 persons in the previous calendar year, the rate is $5

7 per person admitted.

8 (1) The admission fee shall be paid for each admission.

9 (2) (Blank).

10 (3) The licensed manager may issue fee-free passes to

11 actual and necessary officials and employees of the manager

12 or other persons actually working on the riverboat.

13 (4) The number and issuance of fee-free passes is

14 subject to the rules of the Board, and a list of all

15 persons to whom the fee-free passes are issued shall be

16 filed with the Board.

17 (b) Except as provided in subsection (b-5), from ~~From~~ the

18 tax imposed under subsection (a) and the fee imposed under

19 subsection (a-5), a municipality shall receive from the State

20 $1 for each person embarking on a riverboat docked within the

21 municipality or entering a casino located within the

22 municipality, and a county shall receive $1 for each person

23 entering a casino orembarking on a riverboat docked within the

24 county but outside the boundaries of any municipality. The

25 municipality's or county's share shall be collected by the

26 Board on behalf of the State and remitted quarterly by the

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1 State, subject to appropriation, to the treasurer of the unit

2 of local government for deposit in the general fund.

3 (b-5) From the tax imposed under subsection (a) and the fee

4 imposed under subsection (a-5), $1 for each person embarking on

5 a riverboat designated in paragraph (4) of subsection (e-5) of

6 Section 7 shall be divided as follows: $0.70 to the City of

7 Rockford, $0.05 to the City of Loves Park, $0.05 to the Village

8 of Machesney Park, and $0.20 to Winnebago County.

9 The municipality's or county's share shall be collected by

10 the Board on behalf of the State and remitted monthly by the

11 State, subject to appropriation, to the treasurer of the unit

12 of local government for deposit in the general fund.

13 (c) The licensed owner shall pay the entire admission tax

14 to the Board and the licensed manageror the casino operator

15 licenseeshall pay the entire admission fee to the Board. Such

16 payments shall be made daily. Accompanying each payment shall

17 be a return on forms provided by the Board which shall include

18 other information regarding admissions as the Board may

19 require. Failure to submit either the payment or the return

20 within the specified time may result in suspension or

21 revocation of the owners or managers license.

22 (c-5) A tax is imposed on admissions to electronic gaming

23 facilities at the rate of $3 per person admitted by an

24 electronic gaming licensee. The tax is imposed upon the

25 electronic gaming licensee.

26 (1) The admission tax shall be paid for each admission,

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1 except that a person who exits an electronic gaming

2 facility and reenters that electronic gaming facility

3 within the same gaming day, as the term "gaming day" is

4 defined by the Board by rule, shall be subject only to the

5 initial admission tax. The Board shall establish, by rule,

6 a procedure to determine whether a person admitted to an

7 electronic gaming facility has paid the admission tax.

8 (2) An electronic gaming licensee may issue tax-free

9 passes to actual and necessary officials and employees of

10 the licensee and other persons associated with electronic

11 gaming operations.

12 (3) The number and issuance of tax-free passes is

13 subject to the rules of the Board, and a list of all

14 persons to whom the tax-free passes are issued shall be

15 filed with the Board.

16 (4) The electronic gaming licensee shall pay the entire

17 admission tax to the Board.

18 Such payments shall be made daily. Accompanying each

19 payment shall be a return on forms provided by the Board, which

20 shall include other information regarding admission as the

21 Board may require. Failure to submit either the payment or the

22 return within the specified time may result in suspension or

23 revocation of the electronic gaming license.

24 From the tax imposed under this subsection (c-5), a

25 municipality other than the Village of Stickney or the City of

26 Collinsville in which an electronic gaming facility is located,

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1 or if the electronic gaming facility is not located within a

2 municipality, then the county in which the electronic gaming

3 facility is located, except as otherwise provided in this

4 Section, shall receive, subject to appropriation, $1 for each

5 person who enters the electronic gaming facility. For each

6 admission to the electronic gaming facility in excess of

7 1,500,000 in a year, from the tax imposed under this subsection

8 (c-5), the county in which the electronic gaming facility is

9 located shall receive, subject to appropriation, $0.30, which

10 shall be in addition to any other moneys paid to the county

11 under this Section.

12 From the tax imposed under this subsection (c-5) on an

13 electronic gaming facility located in the Village of Stickney,

14 $1 for each person who enters the electronic gaming facility

15 shall be distributed as follows, subject to appropriation:

16 $0.24 to the Village of Stickney, $0.49 to the Town of Cicero,

17 $0.05 to the City of Berwyn, and $0.17 to the Stickney Public

18 Health District, and $0.05 to the City of Bridgeview.

19 From the tax imposed under this subsection (c-5) on an

20 electronic gaming facility located in the City of Collinsville,

21 $1 for each person who enters the electronic gaming facility

22 shall be distributed as follows, subject to appropriation:

23 $0.45 to the City of Alton, $0.45 to the City of East St.

24 Louis, and $0.10 to the City of Collinsville.

25 After payments required under this subsection (c-5) have

26 been made, all remaining amounts shall be deposited into the

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1 Education Assistance Fund.

2 (d) The Board shall administer and collect the admission

3 tax imposed by this Section, to the extent practicable, in a

4 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

5 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the

6 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

7 Penalty and Interest Act.

8 (Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)

9 (230 ILCS 10/13) (from Ch. 120, par. 2413)

10 Sec. 13. Wagering tax; rate; distribution.

11 (a) Until January 1, 1998, a tax is imposed on the adjusted

12 gross receipts received from gambling games authorized under

13 this Act at the rate of 20%.

14 (a-1) From January 1, 1998 until July 1, 2002, a privilege

15 tax is imposed on persons engaged in the business of conducting

16 riverboat gambling operations, based on the adjusted gross

17 receipts received by a licensed owner from gambling games

18 authorized under this Act at the following rates:

19 15% of annual adjusted gross receipts up to and

20 including $25,000,000;

21 20% of annual adjusted gross receipts in excess of

22 $25,000,000 but not exceeding $50,000,000;

23 25% of annual adjusted gross receipts in excess of

24 $50,000,000 but not exceeding $75,000,000;

25 30% of annual adjusted gross receipts in excess of

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1 $75,000,000 but not exceeding $100,000,000;

2 35% of annual adjusted gross receipts in excess of

3 $100,000,000.

4 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax

5 is imposed on persons engaged in the business of conducting

6 riverboat gambling operations, other than licensed managers

7 conducting riverboat gambling operations on behalf of the

8 State, based on the adjusted gross receipts received by a

9 licensed owner from gambling games authorized under this Act at

10 the following rates:

11 15% of annual adjusted gross receipts up to and

12 including $25,000,000;

13 22.5% of annual adjusted gross receipts in excess of

14 $25,000,000 but not exceeding $50,000,000;

15 27.5% of annual adjusted gross receipts in excess of

16 $50,000,000 but not exceeding $75,000,000;

17 32.5% of annual adjusted gross receipts in excess of

18 $75,000,000 but not exceeding $100,000,000;

19 37.5% of annual adjusted gross receipts in excess of

20 $100,000,000 but not exceeding $150,000,000;

21 45% of annual adjusted gross receipts in excess of

22 $150,000,000 but not exceeding $200,000,000;

23 50% of annual adjusted gross receipts in excess of

24 $200,000,000.

25 (a-3) Beginning July 1, 2003, a privilege tax is imposed on

26 persons engaged in the business of conducting riverboat

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1 gambling operations, other than licensed managers conducting

2 riverboat gambling operations on behalf of the State, based on

3 the adjusted gross receipts received by a licensed owner from

4 gambling games authorized under this Act at the following

5 rates:

6 15% of annual adjusted gross receipts up to and

7 including $25,000,000;

8 27.5% of annual adjusted gross receipts in excess of

9 $25,000,000 but not exceeding $37,500,000;

10 32.5% of annual adjusted gross receipts in excess of

11 $37,500,000 but not exceeding $50,000,000;

12 37.5% of annual adjusted gross receipts in excess of

13 $50,000,000 but not exceeding $75,000,000;

14 45% of annual adjusted gross receipts in excess of

15 $75,000,000 but not exceeding $100,000,000;

16 50% of annual adjusted gross receipts in excess of

17 $100,000,000 but not exceeding $250,000,000;

18 70% of annual adjusted gross receipts in excess of

19 $250,000,000.

20 An amount equal to the amount of wagering taxes collected

21 under this subsection (a-3) that are in addition to the amount

22 of wagering taxes that would have been collected if the

23 wagering tax rates under subsection (a-2) were in effect shall

24 be paid into the Common School Fund.

25 The privilege tax imposed under this subsection (a-3) shall

26 no longer be imposed beginning on the earlier of (i) July 1,

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1 2005; (ii) the first date after June 20, 2003 that riverboat

2 gambling operations are conducted pursuant to a dormant

3 license; or (iii) the first day that riverboat gambling

4 operations are conducted under the authority of an owners

5 license that is in addition to the 10 owners licenses initially

6 authorized under this Act. For the purposes of this subsection

7 (a-3), the term "dormant license" means an owners license that

8 is authorized by this Act under which no riverboat gambling

9 operations are being conducted on June 20, 2003.

10 (a-4) Beginning on the first day on which the tax imposed

11 under subsection (a-3) is no longer imposedand ending upon the

12 imposition of the privilege tax under subsection (a-5) of this

13 Section, a privilege tax is imposed on persons engaged in the

14 business of conducting riverboat or casino gambling or

15 electronic gamingoperations, other than licensed managers

16 conducting riverboat gambling operations on behalf of the

17 State, based on the adjusted gross receipts received by a

18 licensed owner from gambling games authorized under this Act at

19 the following rates:

20 15% of annual adjusted gross receipts up to and

21 including $25,000,000;

22 22.5% of annual adjusted gross receipts in excess of

23 $25,000,000 but not exceeding $50,000,000;

24 27.5% of annual adjusted gross receipts in excess of

25 $50,000,000 but not exceeding $75,000,000;

26 32.5% of annual adjusted gross receipts in excess of

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1 $75,000,000 but not exceeding $100,000,000;

2 37.5% of annual adjusted gross receipts in excess of

3 $100,000,000 but not exceeding $150,000,000;

4 45% of annual adjusted gross receipts in excess of

5 $150,000,000 but not exceeding $200,000,000;

6 50% of annual adjusted gross receipts in excess of

7 $200,000,000.

8 For the imposition of the privilege tax in this subsection

9 (a-4), amounts paid pursuant to item (1) of subsection (b) of

10 Section 56 of the Illinois Horse Racing Act of 1975 shall not

11 be included in the determination of adjusted gross receipts.

12 (a-5) Beginning in the fiscal year following the opening of

13 the casino at which gambling operations are conducted pursuant

14 to the Chicago Casino Development Authority Act, but not before

15 July 1, 2019, a privilege tax is imposed on persons engaged in

16 the business of conducting riverboat or casino gambling or

17 electronic gaming operations, other than licensed managers

18 conducting riverboat gambling operations on behalf of the

19 State, based on the adjusted gross receipts received by such

20 licensee from the gambling games authorized under this Act and

21 the Chicago Casino Development Authority Act. The privilege tax

22 for all gambling games other than table games, including, but

23 not limited to, slot machines, video game of chance gambling,

24 and electronic gambling games shall be at the following rates:

25 10% of annual adjusted gross receipts up to and

26 including $25,000,000;

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1 17.5% of annual adjusted gross receipts in excess of

2 $25,000,000 but not exceeding $50,000,000;

3 22.5% of annual adjusted gross receipts in excess of

4 $50,000,000 but not exceeding $75,000,000;

5 27.5% of annual adjusted gross receipts in excess of

6 $75,000,000 but not exceeding $100,000,000;

7 32.5% of annual adjusted gross receipts in excess of

8 $100,000,000 but not exceeding $150,000,000;

9 35% of annual adjusted gross receipts in excess of

10 $150,000,000 but not exceeding $200,000,000;

11 40% of annual adjusted gross receipts in excess of

12 $200,000,000 but not exceeding $300,000,000;

13 30% of annual adjusted gross receipts in excess of

14 $300,000,000 but not exceeding $350,000,000;

15 20% of annual adjusted gross receipts in excess of

16 $350,000,000, but not exceeding $800,000,000;

17 50% of annual adjusted gross receipts in excess of

18 $800,000,000.

19 The privilege tax for table games shall be at the following

20 rates:

21 10% of annual adjusted gross receipts up to and

22 including $25,000,000;

23 17.5% of annual adjusted gross receipts in excess of

24 $25,000,000 but not exceeding $50,000,000;

25 22.5% of annual adjusted gross receipts in excess of

26 $50,000,000 but not exceeding $70,000,000;

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1 16% of annual adjusted gross receipts in excess of

2 $70,000,000.

3 For the imposition of the privilege tax in this subsection

4 (a-5), amounts paid pursuant to item (1) of subsection (b) of

5 Section 56 of the Illinois Horse Racing Act of 1975 shall not

6 be included in the determination of adjusted gross receipts.

7 (a-6) From the effective date of this amendatory Act of the

8 100th General Assembly until June 30, 2021, an owners licensee

9 that conducted gambling operations prior to January 1, 2011

10 shall receive a dollar-for-dollar credit against the tax

11 imposed under this Section for any renovation or construction

12 costs paid by the owners licensee, but in no event shall the

13 credit exceed $2,000,000.

14 Additionally, from the effective date of this amendatory

15 Act of the 100th General Assembly until December 31, 2020, an

16 owners licensee that (i) is located within 15 miles of the

17 Missouri border, and (ii) has at least 3 riverboats, casinos,

18 or their equivalent within a 45-mile radius, may be authorized

19 to relocate to a new location with the approval of both the

20 unit of local government designated as the home dock and the

21 Board, so long as the new location is within the same unit of

22 local government and no more than 3 miles away from its

23 original location. Such owners licensee shall receive a credit

24 against the tax imposed under this Section equal to 8% of the

25 total project costs, as approved by the Board, for any

26 renovation or construction costs paid by the owners licensee

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1 for the construction of the new facility, provided that the new

2 facility is operational by July 1, 2020. In determining whether

3 or not to approve a relocation, the Board must consider the

4 extent to which the relocation will diminish the gaming

5 revenues received by other Illinois gaming facilities.

6 (a-8) Riverboat gambling operations conducted by a

7 licensed manager on behalf of the State are not subject to the

8 tax imposed under this Section.

9 (a-9) Beginning on January 1, 2018, the calculation of

10 gross receipts or adjusted gross receipts, for the purposes of

11 this Section, for a riverboat, casino, or electronic gaming

12 facility shall not include the dollar amount of non-cashable

13 vouchers, coupons, and electronic promotions redeemed by

14 wagerers upon the riverboat, in the casino, or in the

15 electronic gaming facility up to and including an amount not to

16 exceed 30% of a riverboat casino or electronic gaming

17 facility's adjusted gross receipts.

18 The Illinois Gaming Board shall submit to the General

19 Assembly a comprehensive report no later than March 31, 2021

20 detailing, at a minimum, the effect of removing non-cashable

21 vouchers, coupons, and electronic promotions from this

22 calculation on net gaming revenues to the State in calendar

23 years 2018 through 2020, the increase or reduction in wagerers

24 as a result of removing non-cashable vouchers, coupons, and

25 electronic promotions from this calculation, the effect of the

26 tax rates in subsection (a-5) on net gaming revenues to the

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1 State, and proposed modifications to the calculation.

2 (a-10) The taxes imposed by this Section shall be paid by

3 the licensed owneror the electronic gaming licensee to the

4 Board not later than 5:00 o'clock p.m. of the day after the day

5 when the wagers were made.

6 (a-15) If the privilege tax imposed under subsection (a-3)

7 is no longer imposed pursuant to item (i) of the last paragraph

8 of subsection (a-3), then by June 15 of each year, each owners

9 licensee, other than an owners licensee that admitted 1,000,000

10 persons or fewer in calendar year 2004, must, in addition to

11 the payment of all amounts otherwise due under this Section,

12 pay to the Board a reconciliation payment in the amount, if

13 any, by which the licensed owner's base amount exceeds the

14 amount of net privilege tax paid by the licensed owner to the

15 Board in the then current State fiscal year. A licensed owner's

16 net privilege tax obligation due for the balance of the State

17 fiscal year shall be reduced up to the total of the amount paid

18 by the licensed owner in its June 15 reconciliation payment.

19 The obligation imposed by this subsection (a-15) is binding on

20 any person, firm, corporation, or other entity that acquires an

21 ownership interest in any such owners license. The obligation

22 imposed under this subsection (a-15) terminates on the earliest

23 of: (i) July 1, 2007, (ii) the first day after the effective

24 date of this amendatory Act of the 94th General Assembly that

25 riverboat gambling operations are conducted pursuant to a

26 dormant license, (iii) the first day that riverboat gambling

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1 operations are conducted under the authority of an owners

2 license that is in addition to the 10 owners licenses initially

3 authorized under this Act, or (iv) the first day that a

4 licensee under the Illinois Horse Racing Act of 1975 conducts

5 gaming operations with slot machines or other electronic gaming

6 devices. The Board must reduce the obligation imposed under

7 this subsection (a-15) by an amount the Board deems reasonable

8 for any of the following reasons: (A) an act or acts of God,

9 (B) an act of bioterrorism or terrorism or a bioterrorism or

10 terrorism threat that was investigated by a law enforcement

11 agency, or (C) a condition beyond the control of the owners

12 licensee that does not result from any act or omission by the

13 owners licensee or any of its agents and that poses a hazardous

14 threat to the health and safety of patrons. If an owners

15 licensee pays an amount in excess of its liability under this

16 Section, the Board shall apply the overpayment to future

17 payments required under this Section.

18 For purposes of this subsection (a-15):

19 "Act of God" means an incident caused by the operation of

20 an extraordinary force that cannot be foreseen, that cannot be

21 avoided by the exercise of due care, and for which no person

22 can be held liable.

23 "Base amount" means the following:

24 For a riverboat in Alton, $31,000,000.

25 For a riverboat in East Peoria, $43,000,000.

26 For the Empress riverboat in Joliet, $86,000,000.

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1 For a riverboat in Metropolis, $45,000,000.

2 For the Harrah's riverboat in Joliet, $114,000,000.

3 For a riverboat in Aurora, $86,000,000.

4 For a riverboat in East St. Louis, $48,500,000.

5 For a riverboat in Elgin, $198,000,000.

6 "Dormant license" has the meaning ascribed to it in

7 subsection (a-3).

8 "Net privilege tax" means all privilege taxes paid by a

9 licensed owner to the Board under this Section, less all

10 payments made from the State Gaming Fund pursuant to subsection

11 (b) of this Section.

12 The changes made to this subsection (a-15) by Public Act

13 94-839 are intended to restate and clarify the intent of Public

14 Act 94-673 with respect to the amount of the payments required

15 to be made under this subsection by an owners licensee to the

16 Board.

17 (b) Until January 1, 1998, 25% of the tax revenue deposited

18 in the State Gaming Fund under this Section shall be paid,

19 subject to appropriation by the General Assembly, to the unit

20 of local government which is designated as the home dock of the

21 riverboat. Beginning January 1, 1998, from the tax revenue from

22 riverboat or casino gamblingdeposited in the State Gaming Fund

23 under this Section, an amount equal to 5% of adjusted gross

24 receipts generated by a riverboat or a casino other than a

25 riverboat designated in paragraph (3) or (4) of subsection

26 (e-5) of Section 7,shall be paid monthly, subject to

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1 appropriation by the General Assembly, to the unit of local

2 government in which the casino is located orthat is designated

3 as the home dock of the riverboat. From the tax revenue

4 deposited in the State Gaming Fund pursuant to riverboat or

5 casinogambling operations conducted by a licensed manager on

6 behalf of the State, an amount equal to 5% of adjusted gross

7 receipts generated pursuant to those riverboat or casino

8 gambling operations shall be paid monthly, subject to

9 appropriation by the General Assembly, to the unit of local

10 government that is designated as the home dock of the riverboat

11 upon which those riverboat gambling operations are conductedor

12 in which the casino is located. From the tax revenue from

13 riverboat or casino gambling deposited in the State Gaming Fund

14 under this Section, an amount equal to 5% of the adjusted gross

15 receipts generated by a riverboat designated in paragraph (3)

16 of subsection (e-5) of Section 7 shall be divided and remitted

17 monthly, subject to appropriation, as follows: 50% to Waukegan,

18 25% to Park City, and 25% to North Chicago. From the tax

19 revenue from riverboat or casino gambling deposited in the

20 State Gaming Fund under this Section, an amount equal to 5% of

21 the adjusted gross receipts generated by a riverboat designated

22 in paragraph (4) of subsection (e-5) of Section 7 shall be

23 remitted monthly, subject to appropriation, as follows: 70% to

24 the City of Rockford, 5% to the City of Loves Park, 5% to the

25 Village of Machesney, and 20% to Winnebago County. Units of

26 local government may refund any portion of the payment that

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1 they receive pursuant to this subsection (b) to the riverboat

2 or casino.

3 (b-5) Beginning on the effective date of this amendatory

4 Act of the 100th 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 an electronic gaming facility

17 located in the Village of Stickney shall be paid monthly,

18 subject to appropriation by the General Assembly, as follows:

19 25% to the Village of Stickney, 5% to the City of Berwyn, 50%

20 to the Town of Cicero, and 20% to the Stickney Public Health

21 District.

22 From the tax revenue deposited in the State Gaming Fund

23 under this Section, an amount equal to 5% of adjusted gross

24 receipts generated by an electronic gaming facility located in

25 the City of Collinsville shall be paid monthly, subject to

26 appropriation by the General Assembly, as follows: 45% to the

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1 City of Alton, 45% to the City of East St. Louis, and 10% to the

2 City of Collinsville.

3 Municipalities and counties may refund any portion of the

4 payment that they receive pursuant to this subsection (b-5) to

5 the electronic gaming facility.

6 (b-6) Beginning on the effective date of this amendatory

7 Act of the 100th General Assembly, from the tax revenue

8 deposited in the State Gaming Fund under this Section, an

9 amount equal to 2% of adjusted gross receipts generated by an

10 electronic gaming facility located outside Madison County

11 shall be paid monthly, subject to appropriation by the General

12 Assembly, to the county in which the electronic gaming facility

13 is located for the purposes of its criminal justice system or

14 health care system.

15 Counties may refund any portion of the payment that they

16 receive pursuant to this subsection (b-6) to the electronic

17 gaming facility.

18 (c) Appropriations, as approved by the General Assembly,

19 may be made from the State Gaming Fund to the Board (i) for the

20 administration and enforcement of this Act, the Chicago Casino

21 Development Authority Act, and the Video Gaming Act, (ii) for

22 distribution to the Department of State Police and to the

23 Department of Revenue for the enforcement of this Act, the

24 Chicago Casino Development Authority Act, and the Video Gaming

25 Act, and (iii) to the Department of Human Services for the

26 administration of programs to treat problem gambling.The

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1 Board's annual appropriations request must separately state

2 its funding needs for the regulation of electronic gaming,

3 riverboat gaming, casino gaming within the City of Chicago, and

4 video gaming. From the tax revenue deposited in the Gaming

5 Facilities Fee Revenue Fund, the first $50,000,000 shall be

6 paid to the Board, subject to appropriation, for the

7 administration and enforcement of the provisions of this

8 amendatory Act of the 100th General Assembly.

9 (c-3) Appropriations, as approved by the General Assembly,

10 may be made from the tax revenue deposited into the State

11 Gaming Fund from electronic gaming pursuant to this Section for

12 the administration and enforcement of this Act.

13 (c-4) After payments required under subsections (b),

14 (b-5), (b-6), (c), and (c-3) have been made from the tax

15 revenue from electronic gaming deposited into the State Gaming

16 Fund under this Section, all remaining amounts from electronic

17 gaming shall be deposited into the Education Assistance Fund.

18 (c-5) Before May 26, 2006 (the effective date of Public Act

19 94-804) and beginning on the effective date of this amendatory

20 Act of the 95th General Assembly, unless any organization

21 licensee under the Illinois Horse Racing Act of 1975 begins to

22 operate a slot machine or video game of chance under the

23 Illinois Horse Racing Act of 1975 or this Act, after the

24 payments required under subsections (b) and (c) have been made,

25 an amount equal to 15% of the adjusted gross receipts of (1) an

26 owners licensee that relocates pursuant to Section 11.2, (2) an

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1 owners licensee conducting riverboat gambling operations

2 pursuant to an owners license that is initially issued after

3 June 25, 1999, or (3) the first riverboat gambling operations

4 conducted by a licensed manager on behalf of the State under

5 Section 7.3, whichever comes first, shall be paid from the

6 State Gaming Fund into the Horse Racing Equity Fund.

7 (c-10) Each year the General Assembly shall appropriate

8 from the General Revenue Fund to the Education Assistance Fund

9 an amount equal to the amount paid into the Horse Racing Equity

10 Fund pursuant to subsection (c-5) in the prior calendar year.

11 (c-15) After the payments required under subsections (b),

12 (c), and (c-5) have been made, an amount equal to 2% of the

13 adjusted gross receipts of (1) an owners licensee that

14 relocates pursuant to Section 11.2, (2) an owners licensee

15 conducting riverboat gambling operations pursuant to an owners

16 license that is initially issued after June 25, 1999, or (3)

17 the first riverboat gambling operations conducted by a licensed

18 manager on behalf of the State under Section 7.3, whichever

19 comes first, shall be paid, subject to appropriation from the

20 General Assembly, from the State Gaming Fund to each home rule

21 county with a population of over 3,000,000 inhabitants for the

22 purpose of enhancing the county's criminal justice system.

23 (c-20) Each year the General Assembly shall appropriate

24 from the General Revenue Fund to the Education Assistance Fund

25 an amount equal to the amount paid to each home rule county

26 with a population of over 3,000,000 inhabitants pursuant to

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1 subsection (c-15) in the prior calendar year.

2 (c-25) On July 1, 2013 and each July 1 thereafter,

3 $1,600,000 shall be transferred from the State Gaming Fund to

4 the Chicago State University Education Improvement Fund.

5 (c-30) On July 1, 2013 or as soon as possible thereafter,

6 $92,000,000 shall be transferred from the State Gaming Fund to

7 the School Infrastructure Fund and $23,000,000 shall be

8 transferred from the State Gaming Fund to the Horse Racing

9 Equity Fund.

10 (c-35) Beginning on July 1, 2013, in addition to any amount

11 transferred under subsection (c-30) of this Section,

12 $5,530,000 shall be transferred monthly from the State Gaming

13 Fund to the School Infrastructure Fund.

14 (d) From time to time, the Board shall transfer the

15 remainder of the funds generated by this Act into the Education

16 Assistance Fund, created by Public Act 86-0018, of the State of

17 Illinois.

18 (e) Nothing in this Act shall prohibit the unit of local

19 government designated as the home dock of the riverboat from

20 entering into agreements with other units of local government

21 in this State or in other states to share its portion of the

22 tax revenue.

23 (f) To the extent practicable, the Board shall administer

24 and collect the wagering taxes imposed by this Section in a

25 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

26 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the

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1 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

2 Penalty and Interest Act.

3 (Source: P.A. 98-18, eff. 6-7-13.)

4 (230 ILCS 10/14) (from Ch. 120, par. 2414)

5 Sec. 14. Licensees - Records - Reports - Supervision.

6 (a) Licensed owners and electronic gaming licensees ~~A~~

7 ~~licensed owner~~ shall keep ~~his~~ books and records so as to

8 clearly show the following:

9 (1) The amount received daily from admission fees.

10 (2) The total amount of gross receipts.

11 (3) The total amount of the adjusted gross receipts.

12 (b) Licensed owners and electronic gaming licensees ~~The~~

13 ~~licensed owner~~ shall furnish to the Board reports and

14 information as the Board may require with respect to its

15 activities on forms designed and supplied for such purpose by

16 the Board.

17 (c) The books and records kept by a licensed owner as

18 provided by this Section are public records and the

19 examination, publication, and dissemination of the books and

20 records are governed by the provisions of The Freedom of

21 Information Act.

22 (Source: P.A. 86-1029.)

23 (230 ILCS 10/15) (from Ch. 120, par. 2415)

24 Sec. 15. Audit of Licensee Operations. Annually, the

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1 licensed owner, ~~or~~ manager, or electronic gaming licenseeshall

2 transmit to the Board an audit of the financial transactions

3 and condition of the licensee's or manager's total operations.

4 Additionally, within 90 days after the end of each quarter of

5 each fiscal year, the licensed owner, ~~or~~ manager, or electronic

6 gaming licensee shall transmit to the Board a compliance report

7 on engagement procedures determined by the Board. All audits

8 and compliance engagements shall be conducted by certified

9 public accountants selected by the Board. Each certified public

10 accountant must be registered in the State of Illinois under

11 the Illinois Public Accounting Act. The compensation for each

12 certified public accountant shall be paid directly by the

13 licensed owner, ~~or~~ manager, or electronic gaming licensee to

14 the certified public accountant.

15 (Source: P.A. 96-1392, eff. 1-1-11.)

16 (230 ILCS 10/16) (from Ch. 120, par. 2416)

17 Sec. 16. Annual Report of Board. The Board shall make an

18 annual report to the Governor, for the period ending December

19 31 of each year. Included in the report shall be an account of

20 the Board actions, its financial position and results of

21 operation under this Act and the Chicago Casino Development

22 Authority Act, the practical results attained under this Act

23 and the Chicago Casino Development Authority Act and any

24 recommendations for legislation which the Board deems

25 advisable.

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1 (Source: P.A. 86-1029.)

2 (230 ILCS 10/17) (from Ch. 120, par. 2417)

3 Sec. 17. Administrative Procedures. The Illinois

4 Administrative Procedure Act shall apply to all administrative

5 rules and procedures of the Board under this Act, the Chicago

6 Casino Development Authority Act, and ~~or~~ the Video Gaming Act,

7 except that: (1) subsection (b) of Section 5-10 of the Illinois

8 Administrative Procedure Act does not apply to final orders,

9 decisions and opinions of the Board; (2) subsection (a) of

10 Section 5-10 of the Illinois Administrative Procedure Act does

11 not apply to forms established by the Board for use under this

12 Act, the Chicago Casino Development Authority Act, and or the

13 Video Gaming Act; (3) the provisions of Section 10-45 of the

14 Illinois Administrative Procedure Act regarding proposals for

15 decision are excluded under this Act, the Chicago Casino

16 Development Authority Act, and ~~or~~ the Video Gaming Act; and (4)

17 the provisions of subsection (d) of Section 10-65 of the

18 Illinois Administrative Procedure Act do not apply so as to

19 prevent summary suspension of any license pending revocation or

20 other action, which suspension shall remain in effect unless

21 modified by the Board or unless the Board's decision is

22 reversed on the merits upon judicial review.

23 (Source: P.A. 96-34, eff. 7-13-09.)

24 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)

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1 Sec. 17.1. Judicial Review.

2 (a) Jurisdiction and venue for the judicial review of a

3 final order of the Board relating to licensed owners,

4 suppliers, electronic gaming licensees, and ~~or~~special event

5 licenses is vested in the Appellate Court of the judicial

6 district in which Sangamon County is located. A petition for

7 judicial review of a final order of the Board must be filed in

8 the Appellate Court, within 35 days from the date that a copy

9 of the decision sought to be reviewed was served upon the party

10 affected by the decision.

11 (b) Judicial review of all other final orders of the Board

12 shall be conducted in accordance with the Administrative Review

13 Law.

14 (Source: P.A. 88-1.)

15 (230 ILCS 10/18) (from Ch. 120, par. 2418)

16 Sec. 18. Prohibited Activities - Penalty.

17 (a) A person is guilty of a Class A misdemeanor for doing

18 any of the following:

19 (1) Conducting gambling where wagering is used or to be

20 used without a license issued by the Board.

21 (2) Conducting gambling where wagering is permitted

22 other than in the manner specified by Section 11.

23 (b) A person is guilty of a Class B misdemeanor for doing

24 any of the following:

25 (1) permitting a person under 21 years to make a wager;

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1 or

2 (2) violating paragraph (12) of subsection (a) of

3 Section 11 of this Act.

4 (c) A person wagering or accepting a wager at any location

5 outside the riverboat, casino, or electronic gaming facility in

6 violation of paragraph ~~is subject to the penalties in~~

7 ~~paragraphs~~(1) or (2) of subsection (a) of Section 28-1 of the

8 Criminal Code of 2012 is subject to the penalties provided in

9 that Section.

10 (d) A person commits a Class 4 felony and, in addition,

11 shall be barred for life fromgambling operations ~~riverboats~~

12 under the jurisdiction of the Board, if the person does any of

13 the following:

14 (1) Offers, promises, or gives anything of value or

15 benefit to a person who is connected with a riverboator

16 casino owner or electronic gaming licensee,including, but

17 not limited to, an officer or employee of a licensed owner,

18 electronic gaming licensee,or holder of an occupational

19 license pursuant to an agreement or arrangement or with the

20 intent that the promise or thing of value or benefit will

21 influence the actions of the person to whom the offer,

22 promise, or gift was made in order to affect or attempt to

23 affect the outcome of a gambling game, or to influence

24 official action of a member of the Board.

25 (2) Solicits or knowingly accepts or receives a promise

26 of anything of value or benefit while the person is

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1 connected with a riverboat, casino, or electronic gaming

2 facility,including, but not limited to, an officer or

3 employee of a licensed owner or electronic gaming licensee,

4 or the holder of an occupational license, pursuant to an

5 understanding or arrangement or with the intent that the

6 promise or thing of value or benefit will influence the

7 actions of the person to affect or attempt to affect the

8 outcome of a gambling game, or to influence official action

9 of a member of the Board.

10 (3) Uses or possesses with the intent to use a device

11 to assist:

12 (i) In projecting the outcome of the game.

13 (ii) In keeping track of the cards played.

14 (iii) In analyzing the probability of the

15 occurrence of an event relating to the gambling game.

16 (iv) In analyzing the strategy for playing or

17 betting to be used in the game except as permitted by

18 the Board.

19 (4) Cheats at a gambling game.

20 (5) Manufactures, sells, or distributes any cards,

21 chips, dice, game or device which is intended to be used to

22 violate any provision of this Act or the Chicago Casino

23 Development Authority Act.

24 (6) Alters or misrepresents the outcome of a gambling

25 game on which wagers have been made after the outcome is

26 made sure but before it is revealed to the players.

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1 (7) Places a bet after acquiring knowledge, not

2 available to all players, of the outcome of the gambling

3 game which is subject of the bet or to aid a person in

4 acquiring the knowledge for the purpose of placing a bet

5 contingent on that outcome.

6 (8) Claims, collects, or takes, or attempts to claim,

7 collect, or take, money or anything of value in or from the

8 gambling games, with intent to defraud, without having made

9 a wager contingent on winning a gambling game, or claims,

10 collects, or takes an amount of money or thing of value of

11 greater value than the amount won.

12 (9) Uses counterfeit chips or tokens in a gambling

13 game.

14 (10) Possesses any key or device designed for the

15 purpose of opening, entering, or affecting the operation of

16 a gambling game, drop box, or an electronic or mechanical

17 device connected with the gambling game or for removing

18 coins, tokens, chips or other contents of a gambling game.

19 This paragraph (10) does not apply to a gambling licensee

20 or employee of a gambling licensee acting in furtherance of

21 the employee's employment.

22 (e) The possession of more than one of the devices

23 described in subsection (d), paragraphs (3), (5), or (10)

24 permits a rebuttable presumption that the possessor intended to

25 use the devices for cheating.

26 (f) A person under the age of 21 who, except as authorized

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1 under paragraph (10) of Section 11, enters upon a riverboat or

2 in a casino or electronic gaming facility commits a petty

3 offense and is subject to a fine of not less than $100 or more

4 than $250 for a first offense and of not less than $200 or more

5 than $500 for a second or subsequent offense.

6 An action to prosecute any crime occurring on a riverboat

7 shall be tried in the county of the dock at which the riverboat

8 is based. An action to prosecute any crime occurring in a

9 casino or electronic gaming facility shall be tried in the

10 county in which the casino or electronic gaming facility is

11 located.

12 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

13 (230 ILCS 10/18.1)

14 Sec. 18.1. Distribution of certain fines. If a fine is

15 imposed on an owner licensee or an electronic gaming licensee

16 for knowingly sending marketing or promotional materials to any

17 person placed on the self-exclusion list, then the Board shall

18 distribute an amount equal to 15% of the fine imposed to the

19 unit of local government in which the casino, riverboat, or

20 electronic gaming facility is located for the purpose of

21 awarding grants to non-profit entities that assist gambling

22 addicts.

23 (Source: P.A. 96-224, eff. 8-11-09.)

24 (230 ILCS 10/19) (from Ch. 120, par. 2419)

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1 Sec. 19. Forfeiture of property.

2 (a) Except as provided in subsection (b), any riverboat,

3 casino, or electronic gaming facilityused for the conduct of

4 gambling games in violation of this Act shall be considered a

5 gambling place in violation of Section 28-3 of the Criminal

6 Code of 2012. Every gambling device found on a riverboat, in a

7 casino, or at an electronic gaming facility operating gambling

8 games in violation of this Actand every slot machine and video

9 game of chance found at an electronic gaming facility operating

10 gambling games in violation of this Act or the Chicago Casino

11 Development Authority Act shall be subject to seizure,

12 confiscation and destruction as provided in Section 28-5 of the

13 Criminal Code of 2012.

14 (b) It is not a violation of this Act for a riverboat or

15 other watercraft which is licensed for gaming by a contiguous

16 state to dock on the shores of this State if the municipality

17 having jurisdiction of the shores, or the county in the case of

18 unincorporated areas, has granted permission for docking and no

19 gaming is conducted on the riverboat or other watercraft while

20 it is docked on the shores of this State. No gambling device

21 shall be subject to seizure, confiscation or destruction if the

22 gambling device is located on a riverboat or other watercraft

23 which is licensed for gaming by a contiguous state and which is

24 docked on the shores of this State if the municipality having

25 jurisdiction of the shores, or the county in the case of

26 unincorporated areas, has granted permission for docking and no

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1 gaming is conducted on the riverboat or other watercraft while

2 it is docked on the shores of this State.

3 (Source: P.A. 97-1150, eff. 1-25-13.)

4 (230 ILCS 10/20) (from Ch. 120, par. 2420)

5 Sec. 20. Prohibited activities - civil penalties. Any

6 person who conducts a gambling operation without first

7 obtaining a license to do so, or who continues to conduct such

8 games after revocation of his license, or any licensee who

9 conducts or allows to be conducted any unauthorized gambling

10 games on a riverboat, in a casino, or at an electronic gaming

11 facilitywhere it is authorized to conduct its~~riverboat~~

12 gambling operation, in addition to other penalties provided,

13 shall be subject to a civil penalty equal to the amount of

14 gross receipts derived from wagering on the gambling games,

15 whether unauthorized or authorized, conducted on that day as

16 well as confiscation and forfeiture of all gambling game

17 equipment used in the conduct of unauthorized gambling games.

18 (Source: P.A. 86-1029.)

19 (230 ILCS 10/21) (from Ch. 120, par. 2421)

20 Sec. 21. Limitation on taxation of licensees. Licensees

21 shall not be subjected to any excise tax, license tax, permit

22 tax, privilege tax, occupation tax or excursion tax which is

23 imposed exclusively upon the licensee by the State or any

24 political subdivision thereof, except as provided in this Act

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1 or the Chicago Casino Development Authority Act.

2 (Source: P.A. 86-1029.)

3 (230 ILCS 10/23) (from Ch. 120, par. 2423)

4 Sec. 23. The State Gaming Fund. On or after the effective

5 date of this Act, except as provided for payments into the

6 Horse Racing Equity Trust Fund under subsection (a) of Section

7 7, all of the fees and taxes collected pursuant to this Actor

8 the Chicago Casino Development Authority Act shall be deposited

9 into the State Gaming Fund, a special fund in the State

10 Treasury, which is hereby created. The adjusted gross receipts

11 of any riverboat gambling operations conducted by a licensed

12 manager on behalf of the State remaining after the payment of

13 the fees and expenses of the licensed manager shall be

14 deposited into the State Gaming Fund. Fines and penalties

15 collected pursuant to this Act or the Chicago Casino

16 Development Authority Actshall be deposited into the Education

17 Assistance Fund, created by Public Act 86-0018, of the State of

18 Illinois.

19 (Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)

20 (230 ILCS 10/24)

21 Sec. 24. Applicability of this ~~Illinois Riverboat Gambling~~

22 Act. The provisions of the this ~~Illinois Riverboat Gambling~~

23 Act, and all rules promulgated thereunder, shall apply to the

24 Chicago Casino Development Authority Act and the Video Gaming

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1 Act, except where there is a conflict between the ~~2~~ Acts. In

2 the event of a conflict between this Act and the Chicago Casino

3 Development Authority Act, the terms of the Chicago Casino

4 Development Authority Act shall prevail. In the event of a

5 conflict between this Act and the Video Gaming Act, the terms

6 of this Act shall prevail.

7 (Source: P.A. 96-37, eff. 7-13-09.)

8 Section 90-42. The Video Gaming Act is amended by changing

9 Sections 5, 25, 45, 79, and 80 as 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 "Electronic card" means a card purchased from a licensed

21 establishment, licensed fraternal establishment, licensed

22 veterans establishment, or licensed truck stop establishment

23 for use in that establishment as a substitute for cash in the

24 conduct of gaming on a video gaming terminal.

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1 "Electronic voucher" means a voucher printed by an

2 electronic video game machine that is redeemable in the

3 licensed establishment for which it was issued.

4 "Terminal operator" means an individual, partnership,

5 corporation, or limited liability company that is licensed

6 under this Act and that owns, services, and maintains video

7 gaming terminals for placement in licensed establishments,

8 licensed truck stop establishments, licensed fraternal

9 establishments, or licensed veterans establishments.

10 "Licensed technician" means an individual who is licensed

11 under this Act to repair, service, and maintain video gaming

12 terminals.

13 "Licensed terminal handler" means a person, including but

14 not limited to an employee or independent contractor working

15 for a manufacturer, distributor, supplier, technician, or

16 terminal operator, who is licensed under this Act to possess or

17 control a video gaming terminal or to have access to the inner

18 workings of a video gaming terminal. A licensed terminal

19 handler does not include an individual, partnership,

20 corporation, or limited liability company defined as a

21 manufacturer, distributor, supplier, technician, or terminal

22 operator under this Act.

23 "Manufacturer" means an individual, partnership,

24 corporation, or limited liability company that is licensed

25 under this Act and that manufactures or assembles video gaming

26 terminals.

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1 "Supplier" means an individual, partnership, corporation,

2 or limited liability company that is licensed under this Act to

3 supply major components or parts to video gaming terminals to

4 licensed terminal operators.

5 "Net terminal income" means money put into a video gaming

6 terminal minus credits paid out to players.

7 "Video gaming terminal" means any electronic video game

8 machine that, upon insertion of cash, electronic cards or

9 vouchers, or any combination thereof, is available to play or

10 simulate the play of a video game, including but not limited to

11 video poker, line up, and blackjack, as authorized by the Board

12 utilizing a video display and microprocessors in which the

13 player may receive free games or credits that can be redeemed

14 for cash. The term does not include a machine that directly

15 dispenses coins, cash, or tokens or is for amusement purposes

16 only.

17 "Licensed establishment" means any licensed retail

18 establishment where alcoholic liquor is drawn, poured, mixed,

19 or otherwise served for consumption on the premises, whether

20 the establishment operates on a nonprofit or for-profit basis.

21 "Licensed establishment" includes any such establishment that

22 has a contractual relationship with an inter-track wagering

23 location licensee licensed under the Illinois Horse Racing Act

24 of 1975, provided any contractual relationship shall not

25 include any transfer or offer of revenue from the operation of

26 video gaming under this Act to any licensee licensed under the

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1 Illinois Horse Racing Act of 1975. Provided, however, that the

2 licensed establishment that has such a contractual

3 relationship with an inter-track wagering location licensee

4 may not, itself, be (i) an inter-track wagering location

5 licensee, (ii) the corporate parent or subsidiary of any

6 licensee licensed under the Illinois Horse Racing Act of 1975,

7 or (iii) the corporate subsidiary of a corporation that is also

8 the corporate parent or subsidiary of any licensee licensed

9 under the Illinois Horse Racing Act of 1975. "Licensed

10 establishment" does not include a facility operated by an

11 organization licensee, an inter-track wagering licensee, or an

12 inter-track wagering location licensee licensed under the

13 Illinois Horse Racing Act of 1975 or a riverboat licensed under

14 the Illinois ~~Riverboat~~ Gambling Act, except as provided in this

15 paragraph. The changes made to this definition by Public Act

16 98-587 are declarative of existing law.

17 "Licensed fraternal establishment" means the location

18 where a qualified fraternal organization that derives its

19 charter from a national fraternal organization regularly

20 meets.

21 "Licensed veterans establishment" means the location where

22 a qualified veterans organization that derives its charter from

23 a national veterans organization regularly meets.

24 "Licensed truck stop establishment" means a facility (i)

25 that is at least a 3-acre facility with a convenience store,

26 (ii) with separate diesel islands for fueling commercial motor

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1 vehicles, (iii) that sells at retail more than 10,000 gallons

2 of diesel or biodiesel fuel per month, and (iv) with parking

3 spaces for commercial motor vehicles. "Commercial motor

4 vehicles" has the same meaning as defined in Section 18b-101 of

5 the Illinois Vehicle Code. The requirement of item (iii) of

6 this paragraph may be met by showing that estimated future

7 sales or past sales average at least 10,000 gallons per month.

8 (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;

9 98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.

10 7-16-14.)

11 (230 ILCS 40/25)

12 Sec. 25. Restriction of licensees.

13 (a) Manufacturer. A person may not be licensed as a

14 manufacturer of a video gaming terminal in Illinois unless the

15 person has a valid manufacturer's license issued under this

16 Act. A manufacturer may only sell video gaming terminals for

17 use in Illinois to persons having a valid distributor's

18 license.

19 (b) Distributor. A person may not sell, distribute, or

20 lease or market a video gaming terminal in Illinois unless the

21 person has a valid distributor's license issued under this Act.

22 A distributor may only sell video gaming terminals for use in

23 Illinois to persons having a valid distributor's or terminal

24 operator's license.

25 (c) Terminal operator. A person may not own, maintain, or

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1 place a video gaming terminal unless he has a valid terminal

2 operator's license issued under this Act. A terminal operator

3 may only place video gaming terminals for use in Illinois in

4 licensed establishments, licensed truck stop establishments,

5 licensed fraternal establishments, and licensed veterans

6 establishments. No terminal operator may give anything of

7 value, including but not limited to a loan or financing

8 arrangement, to a licensed establishment, licensed truck stop

9 establishment, licensed fraternal establishment, or licensed

10 veterans establishment as any incentive or inducement to locate

11 video terminals in that establishment. Of the after-tax profits

12 from a video gaming terminal, 50% shall be paid to the terminal

13 operator and 50% shall be paid to the licensed establishment,

14 licensed truck stop establishment, licensed fraternal

15 establishment, or licensed veterans establishment,

16 notwithstanding any agreement to the contrary. A video terminal

17 operator that violates one or more requirements of this

18 subsection is guilty of a Class 4 felony and is subject to

19 termination of his or her license by the Board.

20 (d) Licensed technician. A person may not service,

21 maintain, or repair a video gaming terminal in this State

22 unless he or she (1) has a valid technician's license issued

23 under this Act, (2) is a terminal operator, or (3) is employed

24 by a terminal operator, distributor, or manufacturer.

25 (d-5) Licensed terminal handler. No person, including, but

26 not limited to, an employee or independent contractor working

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1 for a manufacturer, distributor, supplier, technician, or

2 terminal operator licensed pursuant to this Act, shall have

3 possession or control of a video gaming terminal, or access to

4 the inner workings of a video gaming terminal, unless that

5 person possesses a valid terminal handler's license issued

6 under this Act.

7 (e) Licensed establishment. No video gaming terminal may be

8 placed in any licensed establishment, licensed veterans

9 establishment, licensed truck stop establishment, or licensed

10 fraternal establishment unless the owner or agent of the owner

11 of the licensed establishment, licensed veterans

12 establishment, licensed truck stop establishment, or licensed

13 fraternal establishment has entered into a written use

14 agreement with the terminal operator for placement of the

15 terminals. A copy of the use agreement shall be on file in the

16 terminal operator's place of business and available for

17 inspection by individuals authorized by the Board. A licensed

18 establishment, licensed truck stop establishment, licensed

19 veterans establishment, or licensed fraternal establishment

20 may operate up to 5 video gaming terminals on its premises at

21 any time.

22 (f) (Blank).

23 (g) Financial interest restrictions. As used in this Act,

24 "substantial interest" in a partnership, a corporation, an

25 organization, an association, a business, or a limited

26 liability company means:

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1 (A) When, with respect to a sole proprietorship, an

2 individual or his or her spouse owns, operates, manages, or

3 conducts, directly or indirectly, the organization,

4 association, or business, or any part thereof; or

5 (B) When, with respect to a partnership, the individual

6 or his or her spouse shares in any of the profits, or

7 potential profits, of the partnership activities; or

8 (C) When, with respect to a corporation, an individual

9 or his or her spouse is an officer or director, or the

10 individual or his or her spouse is a holder, directly or

11 beneficially, of 5% or more of any class of stock of the

12 corporation; or

13 (D) When, with respect to an organization not covered

14 in (A), (B) or (C) above, an individual or his or her

15 spouse is an officer or manages the business affairs, or

16 the individual or his or her spouse is the owner of or

17 otherwise controls 10% or more of the assets of the

18 organization; or

19 (E) When an individual or his or her spouse furnishes

20 5% or more of the capital, whether in cash, goods, or

21 services, for the operation of any business, association,

22 or organization during any calendar year; or

23 (F) When, with respect to a limited liability company,

24 an individual or his or her spouse is a member, or the

25 individual or his or her spouse is a holder, directly or

26 beneficially, of 5% or more of the membership interest of

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1 the limited liability company.

2 For purposes of this subsection (g), "individual" includes

3 all individuals or their spouses whose combined interest would

4 qualify as a substantial interest under this subsection (g) and

5 whose activities with respect to an organization, association,

6 or business are so closely aligned or coordinated as to

7 constitute the activities of a single entity.

8 (h) Location restriction. A licensed establishment,

9 licensed truck stop establishment, licensed fraternal

10 establishment, or licensed veterans establishment that is (i)

11 located within 1,000 feet of a facility operated by an

12 organization licensee licensed under the Illinois Horse Racing

13 Act of 1975 or the home dock of a riverboat licensed under the

14 Illinois ~~Riverboat~~Gambling Act or (ii) located within 100 feet

15 of a school or a place of worship under the Religious

16 Corporation Act, is ineligible to operate a video gaming

17 terminal. The location restrictions in this subsection (h) do

18 not apply if (A) a facility operated by an organization

19 licensee, a school, or a place of worship moves to or is

20 established within the restricted area after a licensed

21 establishment, licensed truck stop establishment, licensed

22 fraternal establishment, or licensed veterans establishment

23 becomes licensed under this Act or (B) a school or place of

24 worship moves to or is established within the restricted area

25 after a licensed establishment, licensed truck stop

26 establishment, licensed fraternal establishment, or licensed

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1 veterans establishment obtains its original liquor license.

2 For the purpose of this subsection, "school" means an

3 elementary or secondary public school, or an elementary or

4 secondary private school registered with or recognized by the

5 State Board of Education.

6 Notwithstanding the provisions of this subsection (h), the

7 Board may waive the requirement that a licensed establishment,

8 licensed truck stop establishment, licensed fraternal

9 establishment, or licensed veterans establishment not be

10 located within 1,000 feet from a facility operated by an

11 organization licensee licensed under the Illinois Horse Racing

12 Act of 1975 or the home dock of a riverboat licensed under the

13 Illinois ~~Riverboat~~ Gambling Act. The Board shall not grant such

14 waiver if there is any common ownership or control, shared

15 business activity, or contractual arrangement of any type

16 between the establishment and the organization licensee or

17 owners licensee of a riverboat. The Board shall adopt rules to

18 implement the provisions of this paragraph.

19 (i) Undue economic concentration. In addition to

20 considering all other requirements under this Act, in deciding

21 whether to approve the operation of video gaming terminals by a

22 terminal operator in a location, the Board shall consider the

23 impact of any economic concentration of such operation of video

24 gaming terminals. The Board shall not allow a terminal operator

25 to operate video gaming terminals if the Board determines such

26 operation will result in undue economic concentration. For

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1 purposes of this Section, "undue economic concentration" means

2 that a terminal operator would have such actual or potential

3 influence over video gaming terminals in Illinois as to:

4 (1) substantially impede or suppress competition among

5 terminal operators;

6 (2) adversely impact the economic stability of the

7 video gaming industry in Illinois; or

8 (3) negatively impact the purposes of the Video Gaming

9 Act.

10 The Board shall adopt rules concerning undue economic

11 concentration with respect to the operation of video gaming

12 terminals in Illinois. The rules shall include, but not be

13 limited to, (i) limitations on the number of video gaming

14 terminals operated by any terminal operator within a defined

15 geographic radius and (ii) guidelines on the discontinuation of

16 operation of any such video gaming terminals the Board

17 determines will cause undue economic concentration.

18 (j) The provisions of the Illinois Antitrust Act are fully

19 and equally applicable to the activities of any licensee under

20 this Act.

21 (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,

22 eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)

23 (230 ILCS 40/45)

24 Sec. 45. Issuance of license.

25 (a) The burden is upon each applicant to demonstrate his

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1 suitability for licensure. Each video gaming terminal

2 manufacturer, distributor, supplier, operator, handler,

3 licensed establishment, licensed truck stop establishment,

4 licensed fraternal establishment, and licensed veterans

5 establishment shall be licensed by the Board. The Board may

6 issue or deny a license under this Act to any person pursuant

7 to the same criteria set forth in Section 9 of the Illinois

8 ~~Riverboat~~ Gambling Act.

9 (a-5) The Board shall not grant a license to a person who

10 has facilitated, enabled, or participated in the use of

11 coin-operated devices for gambling purposes or who is under the

12 significant influence or control of such a person. For the

13 purposes of this Act, "facilitated, enabled, or participated in

14 the use of coin-operated amusement devices for gambling

15 purposes" means that the person has been convicted of any

16 violation of Article 28 of the Criminal Code of 1961 or the

17 Criminal Code of 2012. If there is pending legal action against

18 a person for any such violation, then the Board shall delay the

19 licensure of that person until the legal action is resolved.

20 (b) Each person seeking and possessing a license as a video

21 gaming terminal manufacturer, distributor, supplier, operator,

22 handler, licensed establishment, licensed truck stop

23 establishment, licensed fraternal establishment, or licensed

24 veterans establishment shall submit to a background

25 investigation conducted by the Board with the assistance of the

26 State Police or other law enforcement. To the extent that the

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1 corporate structure of the applicant allows, the background

2 investigation shall include any or all of the following as the

3 Board deems appropriate or as provided by rule for each

4 category of licensure: (i) each beneficiary of a trust, (ii)

5 each partner of a partnership, (iii) each member of a limited

6 liability company, (iv) each director and officer of a publicly

7 or non-publicly held corporation, (v) each stockholder of a

8 non-publicly held corporation, (vi) each stockholder of 5% or

9 more of a publicly held corporation, or (vii) each stockholder

10 of 5% or more in a parent or subsidiary corporation.

11 (c) Each person seeking and possessing a license as a video

12 gaming terminal manufacturer, distributor, supplier, operator,

13 handler, licensed establishment, licensed truck stop

14 establishment, licensed fraternal establishment, or licensed

15 veterans establishment shall disclose the identity of every

16 person, association, trust, corporation, or limited liability

17 company having a greater than 1% direct or indirect pecuniary

18 interest in the video gaming terminal operation for which the

19 license is sought. If the disclosed entity is a trust, the

20 application shall disclose the names and addresses of the

21 beneficiaries; if a corporation, the names and addresses of all

22 stockholders and directors; if a limited liability company, the

23 names and addresses of all members; or if a partnership, the

24 names and addresses of all partners, both general and limited.

25 (d) No person may be licensed as a video gaming terminal

26 manufacturer, distributor, supplier, operator, handler,

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1 licensed establishment, licensed truck stop establishment,

2 licensed fraternal establishment, or licensed veterans

3 establishment if that person has been found by the Board to:

4 (1) have a background, including a criminal record,

5 reputation, habits, social or business associations, or

6 prior activities that pose a threat to the public interests

7 of the State or to the security and integrity of video

8 gaming;

9 (2) create or enhance the dangers of unsuitable,

10 unfair, or illegal practices, methods, and activities in

11 the conduct of video gaming; or

12 (3) present questionable business practices and

13 financial arrangements incidental to the conduct of video

14 gaming activities.

15 (e) Any applicant for any license under this Act has the

16 burden of proving his or her qualifications to the satisfaction

17 of the Board. The Board may adopt rules to establish additional

18 qualifications and requirements to preserve the integrity and

19 security of video gaming in this State.

20 (f) A non-refundable application fee shall be paid at the

21 time an application for a license is filed with the Board in

22 the following amounts:

23 (1) Manufacturer..........................$5,000

24 (2) Distributor...........................$5,000

25 (3) Terminal operator.....................$5,000

26 (4) Supplier..............................$2,500

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1 (5) Technician..............................$100

2 (6) Terminal Handler..............................$50

3 (g) The Board shall establish an annual fee for each

4 license not to exceed the following:

5 (1) Manufacturer.........................$10,000

6 (2) Distributor..........................$10,000

7 (3) Terminal operator.....................$5,000

8 (4) Supplier..............................$2,000

9 (5) Technician..............................$100

10 (6) Licensed establishment, licensed truck stop

11 establishment, licensed fraternal establishment,

12 or licensed veterans establishment..............$100

13 (7) Video gaming terminal...................$100

14 (8) Terminal Handler..............................$50

15 (h) A terminal operator and a licensed establishment,

16 licensed truck stop establishment, licensed fraternal

17 establishment, or licensed veterans establishment shall

18 equally split the fees specified in item (7) of subsection (g).

19 (Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;

20 98-587, eff. 8-27-13; 98-756, eff. 7-16-14.)

21 (230 ILCS 40/79)

22 Sec. 79. Investigators. Investigators appointed by the

23 Board pursuant to the powers conferred upon the Board by

24 paragraph (20.6) of subsection (c) of Section 5 of the Illinois

25 ~~Riverboat~~ Gambling Act and Section 80 of this Act shall have

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1 authority to conduct investigations, searches, seizures,

2 arrests, and other duties imposed under this Act and the

3 Illinois ~~Riverboat~~ Gambling Act, as deemed necessary by the

4 Board. These investigators have and may exercise all of the

5 rights and powers of peace officers, provided that these powers

6 shall be (1) limited to offenses or violations occurring or

7 committed in connection with conduct subject to this Act,

8 including, but not limited to, the manufacture, distribution,

9 supply, operation, placement, service, maintenance, or play of

10 video gaming terminals and the distribution of profits and

11 collection of revenues resulting from such play, and (2)

12 exercised, to the fullest extent practicable, in cooperation

13 with the local police department of the applicable municipality

14 or, if these powers are exercised outside the boundaries of an

15 incorporated municipality or within a municipality that does

16 not have its own police department, in cooperation with the

17 police department whose jurisdiction encompasses the

18 applicable locality.

19 (Source: P.A. 97-809, eff. 7-13-12.)

20 (230 ILCS 40/80)

21 Sec. 80. Applicability of Illinois ~~Riverboat~~ Gambling Act.

22 The provisions of the Illinois ~~Riverboat~~ Gambling Act, and all

23 rules promulgated thereunder, shall apply to the Video Gaming

24 Act, except where there is a conflict between the 2 Acts. In

25 the event of a conflict between the 2 Acts, the provisions of

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1 the Illinois Gambling Act shall prevail. All provisions of the

2 Uniform Penalty and Interest Act shall apply, as far as

3 practicable, to the subject matter of this Act to the same

4 extent as if such provisions were included herein.

5 (Source: P.A. 96-37, eff. 7-13-09.)

6 Section 90-45. The Liquor Control Act of 1934 is amended by

7 changing Sections 5-1 and 6-30 as follows:

8 (235 ILCS 5/5-1) (from Ch. 43, par. 115)

9 Sec. 5-1. Licenses issued by the Illinois Liquor Control

10 Commission shall be of the following classes:

11 (a) Manufacturer's license - Class 1. Distiller, Class 2.

12 Rectifier, Class 3. Brewer, Class 4. First Class Wine

13 Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.

14 First Class Winemaker, Class 7. Second Class Winemaker, Class

15 8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class

16 10. Class 1 Brewer, Class 11. Class 2 Brewer,

17 (b) Distributor's license,

18 (c) Importing Distributor's license,

19 (d) Retailer's license,

20 (e) Special Event Retailer's license (not-for-profit),

21 (f) Railroad license,

22 (g) Boat license,

23 (h) Non-Beverage User's license,

24 (i) Wine-maker's premises license,

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1 (j) Airplane license,

2 (k) Foreign importer's license,

3 (l) Broker's license,

4 (m) Non-resident dealer's license,

5 (n) Brew Pub license,

6 (o) Auction liquor license,

7 (p) Caterer retailer license,

8 (q) Special use permit license,

9 (r) Winery shipper's license,

10 (s) Craft distiller tasting permit.

11 No person, firm, partnership, corporation, or other legal

12 business entity that is engaged in the manufacturing of wine

13 may concurrently obtain and hold a wine-maker's license and a

14 wine manufacturer's license.

15 (a) A manufacturer's license shall allow the manufacture,

16 importation in bulk, storage, distribution and sale of

17 alcoholic liquor to persons without the State, as may be

18 permitted by law and to licensees in this State as follows:

19 Class 1. A Distiller may make sales and deliveries of

20 alcoholic liquor to distillers, rectifiers, importing

21 distributors, distributors and non-beverage users and to no

22 other licensees.

23 Class 2. A Rectifier, who is not a distiller, as defined

24 herein, may make sales and deliveries of alcoholic liquor to

25 rectifiers, importing distributors, distributors, retailers

26 and non-beverage users and to no other licensees.

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1 Class 3. A Brewer may make sales and deliveries of beer to

2 importing distributors and distributors and may make sales as

3 authorized under subsection (e) of Section 6-4 of this Act.

4 Class 4. A first class wine-manufacturer may make sales and

5 deliveries of up to 50,000 gallons of wine to manufacturers,

6 importing distributors and distributors, and to no other

7 licensees.

8 Class 5. A second class Wine manufacturer may make sales

9 and deliveries of more than 50,000 gallons of wine to

10 manufacturers, importing distributors and distributors and to

11 no other licensees.

12 Class 6. A first-class wine-maker's license shall allow the

13 manufacture of up to 50,000 gallons of wine per year, and the

14 storage and sale of such wine to distributors in the State and

15 to persons without the State, as may be permitted by law. A

16 person who, prior to June 1, 2008 (the effective date of Public

17 Act 95-634), is a holder of a first-class wine-maker's license

18 and annually produces more than 25,000 gallons of its own wine

19 and who distributes its wine to licensed retailers shall cease

20 this practice on or before July 1, 2008 in compliance with

21 Public Act 95-634.

22 Class 7. A second-class wine-maker's license shall allow

23 the manufacture of between 50,000 and 150,000 gallons of wine

24 per year, and the storage and sale of such wine to distributors

25 in this State and to persons without the State, as may be

26 permitted by law. A person who, prior to June 1, 2008 (the

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1 effective date of Public Act 95-634), is a holder of a

2 second-class wine-maker's license and annually produces more

3 than 25,000 gallons of its own wine and who distributes its

4 wine to licensed retailers shall cease this practice on or

5 before July 1, 2008 in compliance with Public Act 95-634.

6 Class 8. A limited wine-manufacturer may make sales and

7 deliveries not to exceed 40,000 gallons of wine per year to

8 distributors, and to non-licensees in accordance with the

9 provisions of this Act.

10 Class 9. A craft distiller license shall allow the

11 manufacture of up to 100,000 ~~March 1, 2013 (Public Act 97-1166)~~

12 gallons of spirits by distillation per year and the storage of

13 such spirits. If a craft distiller licensee, including a craft

14 distiller licensee who holds more than one craft distiller

15 license, is not affiliated with any other manufacturer of

16 spirits, then the craft distiller licensee may sell such

17 spirits to distributors in this State and up to 2,500 gallons

18 of such spirits to non-licensees to the extent permitted by any

19 exemption approved by the Commission pursuant to Section 6-4 of

20 this Act. A craft distiller license holder may store such

21 spirits at a non-contiguous licensed location, but at no time

22 shall a craft distiller license holder directly or indirectly

23 produce in the aggregate more than 100,000 gallons of spirits

24 per year.

25 A craft distiller licensee may hold more than one craft

26 distiller's license. However, a craft distiller that holds more

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1 than one craft distiller license shall not manufacture, in the

2 aggregate, more than 100,000 gallons of spirits by distillation

3 per year and shall not sell, in the aggregate, more than 2,500

4 gallons of such spirits to non-licensees in accordance with an

5 exemption approved by the State Commission pursuant to Section

6 6-4 of this Act.

7 Any craft distiller licensed under this Act who on July 28,

8 2010 (the effective date of Public Act 96-1367) was licensed as

9 a distiller and manufactured no more spirits than permitted by

10 this Section shall not be required to pay the initial licensing

11 fee.

12 Class 10. A class 1 brewer license, which may only be

13 issued to a licensed brewer or licensed non-resident dealer,

14 shall allow the manufacture of up to 930,000 gallons of beer

15 per year provided that the class 1 brewer licensee does not

16 manufacture more than a combined 930,000 gallons of beer per

17 year and is not a member of or affiliated with, directly or

18 indirectly, a manufacturer that produces more than 930,000

19 gallons of beer per year or any other alcoholic liquor. A class

20 1 brewer licensee may make sales and deliveries to importing

21 distributors and distributors and to retail licensees in

22 accordance with the conditions set forth in paragraph (18) of

23 subsection (a) of Section 3-12 of this Act.

24 Class 11. A class 2 brewer license, which may only be

25 issued to a licensed brewer or licensed non-resident dealer,

26 shall allow the manufacture of up to 3,720,000 gallons of beer

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1 per year provided that the class 2 brewer licensee does not

2 manufacture more than a combined 3,720,000 gallons of beer per

3 year and is not a member of or affiliated with, directly or

4 indirectly, a manufacturer that produces more than 3,720,000

5 gallons of beer per year or any other alcoholic liquor. A class

6 2 brewer licensee may make sales and deliveries to importing

7 distributors and distributors, but shall not make sales or

8 deliveries to any other licensee. If the State Commission

9 provides prior approval, a class 2 brewer licensee may annually

10 transfer up to 3,720,000 gallons of beer manufactured by that

11 class 2 brewer licensee to the premises of a licensed class 2

12 brewer wholly owned and operated by the same licensee.

13 (a-1) A manufacturer which is licensed in this State to

14 make sales or deliveries of alcoholic liquor to licensed

15 distributors or importing distributors and which enlists

16 agents, representatives, or individuals acting on its behalf

17 who contact licensed retailers on a regular and continual basis

18 in this State must register those agents, representatives, or

19 persons acting on its behalf with the State Commission.

20 Registration of agents, representatives, or persons acting

21 on behalf of a manufacturer is fulfilled by submitting a form

22 to the Commission. The form shall be developed by the

23 Commission and shall include the name and address of the

24 applicant, the name and address of the manufacturer he or she

25 represents, the territory or areas assigned to sell to or

26 discuss pricing terms of alcoholic liquor, and any other

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1 questions deemed appropriate and necessary. All statements in

2 the forms required to be made by law or by rule shall be deemed

3 material, and any person who knowingly misstates any material

4 fact under oath in an application is guilty of a Class B

5 misdemeanor. Fraud, misrepresentation, false statements,

6 misleading statements, evasions, or suppression of material

7 facts in the securing of a registration are grounds for

8 suspension or revocation of the registration. The State

9 Commission shall post a list of registered agents on the

10 Commission's website.

11 (b) A distributor's license shall allow the wholesale

12 purchase and storage of alcoholic liquors and sale of alcoholic

13 liquors to licensees in this State and to persons without the

14 State, as may be permitted by law. No person licensed as a

15 distributor shall be granted a non-resident dealer's license.

16 (c) An importing distributor's license may be issued to and

17 held by those only who are duly licensed distributors, upon the

18 filing of an application by a duly licensed distributor, with

19 the Commission and the Commission shall, without the payment of

20 any fee, immediately issue such importing distributor's

21 license to the applicant, which shall allow the importation of

22 alcoholic liquor by the licensee into this State from any point

23 in the United States outside this State, and the purchase of

24 alcoholic liquor in barrels, casks or other bulk containers and

25 the bottling of such alcoholic liquors before resale thereof,

26 but all bottles or containers so filled shall be sealed,

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1 labeled, stamped and otherwise made to comply with all

2 provisions, rules and regulations governing manufacturers in

3 the preparation and bottling of alcoholic liquors. The

4 importing distributor's license shall permit such licensee to

5 purchase alcoholic liquor from Illinois licensed non-resident

6 dealers and foreign importers only. No person licensed as an

7 importing distributor shall be granted a non-resident dealer's

8 license.

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 Public Act 95-634 shall

13 deny, limit, remove, or restrict the ability of a holder of a

14 retailer's license to transfer, deliver, or ship alcoholic

15 liquor to the purchaser for use or consumption subject to any

16 applicable local law or ordinance. Any retail license issued to

17 a manufacturer shall only permit the manufacturer to sell beer

18 at retail on the premises actually occupied by the

19 manufacturer. For the purpose of further describing the type of

20 business conducted at a retail licensed premises, a retailer's

21 licensee may be designated by the State Commission as (i) an on

22 premise consumption retailer, (ii) an off premise sale

23 retailer, or (iii) a combined on premise consumption and off

24 premise sale retailer.

25 Notwithstanding any other provision of this subsection

26 (d), a retail licensee may sell alcoholic liquors to a special

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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)

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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.

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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 theIllinois ~~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

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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

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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

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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

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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

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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. No person licensed as a

13 non-resident dealer shall be granted a distributor's or

14 importing distributor's license.

15 (n) A brew pub license shall allow the licensee to only (i)

16 manufacture up to 155,000 gallons of beer per year only on the

17 premises specified in the license, (ii) make sales of the beer

18 manufactured on the premises or, with the approval of the

19 Commission, beer manufactured on another brew pub licensed

20 premises that is wholly owned and operated by the same licensee

21 to importing distributors, distributors, and to non-licensees

22 for use and consumption, (iii) store the beer upon the

23 premises, (iv) sell and offer for sale at retail from the

24 licensed premises for off-premises consumption no more than

25 155,000 gallons per year so long as such sales are only made

26 in-person, (v) sell and offer for sale at retail for use and

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1 consumption on the premises specified in the license any form

2 of alcoholic liquor purchased from a licensed distributor or

3 importing distributor, and (vi) with the prior approval of the

4 Commission, annually transfer no more than 155,000 gallons of

5 beer manufactured on the premises to a licensed brew pub wholly

6 owned and operated by the same licensee.

7 A brew pub licensee shall not under any circumstance sell

8 or offer for sale beer manufactured by the brew pub licensee to

9 retail licensees.

10 A person who holds a class 2 brewer license may

11 simultaneously hold a brew pub license if the class 2 brewer

12 (i) does not, under any circumstance, sell or offer for sale

13 beer manufactured by the class 2 brewer to retail licensees;

14 (ii) does not hold more than 3 brew pub licenses in this State;

15 (iii) does not manufacture more than a combined 3,720,000

16 gallons of beer per year, including the beer manufactured at

17 the brew pub; and (iv) is not a member of or affiliated with,

18 directly or indirectly, a manufacturer that produces more than

19 3,720,000 gallons of beer per year or any other alcoholic

20 liquor.

21 Notwithstanding any other provision of this Act, a licensed

22 brewer, class 2 brewer, or non-resident dealer who before July

23 1, 2015 manufactured less than 3,720,000 gallons of beer per

24 year and held a brew pub license on or before July 1, 2015 may

25 (i) continue to qualify for and hold that brew pub license for

26 the licensed premises and (ii) manufacture more than 3,720,000

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1 gallons of beer per year and continue to qualify for and hold

2 that brew pub license if that brewer, class 2 brewer, or

3 non-resident dealer does not simultaneously hold a class 1

4 brewer license and is not a member of or affiliated with,

5 directly or indirectly, a manufacturer that produces more than

6 3,720,000 gallons of beer per year or that produces any other

7 alcoholic liquor.

8 (o) A caterer retailer license shall allow the holder to

9 serve alcoholic liquors as an incidental part of a food service

10 that serves prepared meals which excludes the serving of snacks

11 as the primary meal, either on or off-site whether licensed or

12 unlicensed.

13 (p) An auction liquor license shall allow the licensee to

14 sell and offer for sale at auction wine and spirits for use or

15 consumption, or for resale by an Illinois liquor licensee in

16 accordance with provisions of this Act. An auction liquor

17 license will be issued to a person and it will permit the

18 auction liquor licensee to hold the auction anywhere in the

19 State. An auction liquor license must be obtained for each

20 auction at least 14 days in advance of the auction date.

21 (q) A special use permit license shall allow an Illinois

22 licensed retailer to transfer a portion of its alcoholic liquor

23 inventory from its retail licensed premises to the premises

24 specified in the license hereby created, and to sell or offer

25 for sale at retail, only in the premises specified in the

26 license hereby created, the transferred alcoholic liquor for

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1 use or consumption, but not for resale in any form. A special

2 use permit license may be granted for the following time

3 periods: one day or less; 2 or more days to a maximum of 15 days

4 per location in any 12-month ~~12 month~~period. An applicant for

5 the special use permit license must also submit with the

6 application proof satisfactory to the State Commission that the

7 applicant will provide dram shop liability insurance to the

8 maximum limits and have local authority approval.

9 (r) A winery shipper's license shall allow a person with a

10 first-class or second-class wine manufacturer's license, a

11 first-class or second-class wine-maker's license, or a limited

12 wine manufacturer's license or who is licensed to make wine

13 under the laws of another state to ship wine made by that

14 licensee directly to a resident of this State who is 21 years

15 of age or older for that resident's personal use and not for

16 resale. Prior to receiving a winery shipper's license, an

17 applicant for the license must provide the Commission with a

18 true copy of its current license in any state in which it is

19 licensed as a manufacturer of wine. An applicant for a winery

20 shipper's license must also complete an application form that

21 provides any other information the Commission deems necessary.

22 The application form shall include all addresses from which the

23 applicant for a winery shipper's license intends to ship wine,

24 including the name and address of any third party, except for a

25 common carrier, authorized to ship wine on behalf of the

26 manufacturer. The application form shall include an

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1 acknowledgement consenting to the jurisdiction of the

2 Commission, the Illinois Department of Revenue, and the courts

3 of this State concerning the enforcement of this Act and any

4 related laws, rules, and regulations, including authorizing

5 the Department of Revenue and the Commission to conduct audits

6 for the purpose of ensuring compliance with Public Act 95-634,

7 and an acknowledgement that the wine manufacturer is in

8 compliance with Section 6-2 of this Act. Any third party,

9 except for a common carrier, authorized to ship wine on behalf

10 of a first-class or second-class wine manufacturer's licensee,

11 a first-class or second-class wine-maker's licensee, a limited

12 wine manufacturer's licensee, or a person who is licensed to

13 make wine under the laws of another state shall also be

14 disclosed by the winery shipper's licensee, and a copy of the

15 written appointment of the third-party wine provider, except

16 for a common carrier, to the wine manufacturer shall be filed

17 with the State Commission as a supplement to the winery

18 shipper's license application or any renewal thereof. The

19 winery shipper's license holder shall affirm under penalty of

20 perjury, as part of the winery shipper's license application or

21 renewal, that he or she only ships wine, either directly or

22 indirectly through a third-party provider, from the licensee's

23 own production.

24 Except for a common carrier, a third-party provider

25 shipping wine on behalf of a winery shipper's license holder is

26 the agent of the winery shipper's license holder and, as such,

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1 a winery shipper's license holder is responsible for the acts

2 and omissions of the third-party provider acting on behalf of

3 the license holder. A third-party provider, except for a common

4 carrier, that engages in shipping wine into Illinois on behalf

5 of a winery shipper's license holder shall consent to the

6 jurisdiction of the State Commission and the State. Any

7 third-party, except for a common carrier, holding such an

8 appointment shall, by February 1 of each calendar year, file

9 with the State Commission a statement detailing each shipment

10 made to an Illinois resident. The State Commission shall adopt

11 rules as soon as practicable to implement the requirements of

12 Public Act 99-904 ~~this amendatory Act of the 99th General~~

13 ~~Assembly~~ and shall adopt rules prohibiting any such third-party

14 appointment of a third-party provider, except for a common

15 carrier, that has been deemed by the State Commission to have

16 violated the provisions of this Act with regard to any winery

17 shipper licensee.

18 A winery shipper licensee must pay to the Department of

19 Revenue the State liquor gallonage tax under Section 8-1 for

20 all wine that is sold by the licensee and shipped to a person

21 in this State. For the purposes of Section 8-1, a winery

22 shipper licensee shall be taxed in the same manner as a

23 manufacturer of wine. A licensee who is not otherwise required

24 to register under the Retailers' Occupation Tax Act must

25 register under the Use Tax Act to collect and remit use tax to

26 the Department of Revenue for all gallons of wine that are sold

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1 by the licensee and shipped to persons in this State. If a

2 licensee fails to remit the tax imposed under this Act in

3 accordance with the provisions of Article VIII of this Act, the

4 winery shipper's license shall be revoked in accordance with

5 the provisions of Article VII of this Act. If a licensee fails

6 to properly register and remit tax under the Use Tax Act or the

7 Retailers' Occupation Tax Act for all wine that is sold by the

8 winery shipper and shipped to persons in this State, the winery

9 shipper's license shall be revoked in accordance with the

10 provisions of Article VII of this Act.

11 A winery shipper licensee must collect, maintain, and

12 submit to the Commission on a semi-annual basis the total

13 number of cases per resident of wine shipped to residents of

14 this State. A winery shipper licensed under this subsection (r)

15 must comply with the requirements of Section 6-29 of this Act.

16 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of

17 Section 3-12, the State Commission may receive, respond to, and

18 investigate any complaint and impose any of the remedies

19 specified in paragraph (1) of subsection (a) of Section 3-12.

20 (s) A craft distiller tasting permit license shall allow an

21 Illinois licensed craft distiller to transfer a portion of its

22 alcoholic liquor inventory from its craft distiller licensed

23 premises to the premises specified in the license hereby

24 created and to conduct a sampling, only in the premises

25 specified in the license hereby created, of the transferred

26 alcoholic liquor in accordance with subsection (c) of Section

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1 6-31 of this Act. The transferred alcoholic liquor may not be

2 sold or resold in any form. An applicant for the craft

3 distiller tasting permit license must also submit with the

4 application proof satisfactory to the State Commission that the

5 applicant will provide dram shop liability insurance to the

6 maximum limits and have local authority approval.

7 (Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;

8 98-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.

9 7-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,

10 eff. 1-1-17; revised 9-15-16.)

11 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)

12 Sec. 6-30. Notwithstanding any other provision of this Act,

13 the Illinois Gaming Board shall have exclusive authority to

14 establish the hours for sale and consumption of alcoholic

15 liquor on board a riverboat during riverboat gambling

16 excursions and in a casino conducted in accordance with the

17 Illinois ~~Riverboat~~Gambling Act.

18 (Source: P.A. 87-826.)

19 Section 90-46. The Illinois Public Aid Code is amended by

20 changing Section 10-17.15 as follows:

21 (305 ILCS 5/10-17.15)

22 Sec. 10-17.15. Certification of information to State

23 gaming licensees.

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1 (a) For purposes of this Section, "State gaming licensee"

2 means, as applicable, an organization licensee or advance

3 deposit wagering licensee licensed under the Illinois Horse

4 Racing Act of 1975, an owners licensee licensed under the

5 Illinois ~~Riverboat~~ Gambling Act, or a licensee that operates,

6 under any law of this State, one or more facilities or gaming

7 locations at which lawful gambling is authorized and licensed

8 as provided in the Illinois ~~Riverboat~~ Gambling Act.

9 (b) The Department may provide, by rule, for certification

10 to any State gaming licensee of past due child support owed by

11 a responsible relative under a support order entered by a court

12 or administrative body of this or any other State on behalf of

13 a resident or non-resident receiving child support services

14 under this Article in accordance with the requirements of Title

15 IV-D, Part D, of the Social Security Act. The State gaming

16 licensee shall have the ability to withhold from winnings

17 required to be reported to the Internal Revenue Service on Form

18 W-2G, up to the full amount of winnings necessary to pay the

19 winner's past due child support. The rule shall provide for

20 notice to and an opportunity to be heard by each responsible

21 relative affected and any final administrative decision

22 rendered by the Department shall be reviewed only under and in

23 accordance with the Administrative Review Law.

24 (c) For withholding of winnings, the State gaming licensee

25 shall be entitled to an administrative fee not to exceed the

26 lesser of 4% of the total amount of cash winnings paid to the

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1 gambling winner or $150.

2 (d) In no event may the total amount withheld from the cash

3 payout, including the administrative fee, exceed the total cash

4 winnings claimed by the obligor. If the cash payout claimed is

5 greater than the amount sufficient to satisfy the obligor's

6 delinquent child support payments, the State gaming licensee

7 shall pay the obligor the remaining balance of the payout, less

8 the administrative fee authorized by subsection (c) of this

9 Section, at the time it is claimed.

10 (e) A State gaming licensee who in good faith complies with

11 the requirements of this Section shall not be liable to the

12 gaming winner or any other individual or entity.

13 (Source: P.A. 98-318, eff. 8-12-13.)

14 Section 90-47. The Firearm Concealed Carry Act is amended

15 by changing Section 65 as follows:

16 (430 ILCS 66/65)

17 Sec. 65. Prohibited areas.

18 (a) A licensee under this Act shall not knowingly carry a

19 firearm on or into:

20 (1) Any building, real property, and parking area under

21 the control of a public or private elementary or secondary

22 school.

23 (2) Any building, real property, and parking area under

24 the control of a pre-school or child care facility,

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1 including any room or portion of a building under the

2 control of a pre-school or child care facility. Nothing in

3 this paragraph shall prevent the operator of a child care

4 facility in a family home from owning or possessing a

5 firearm in the home or license under this Act, if no child

6 under child care at the home is present in the home or the

7 firearm in the home is stored in a locked container when a

8 child under child care at the home is present in the home.

9 (3) Any building, parking area, or portion of a

10 building under the control of an officer of the executive

11 or legislative branch of government, provided that nothing

12 in this paragraph shall prohibit a licensee from carrying a

13 concealed firearm onto the real property, bikeway, or trail

14 in a park regulated by the Department of Natural Resources

15 or any other designated public hunting area or building

16 where firearm possession is permitted as established by the

17 Department of Natural Resources under Section 1.8 of the

18 Wildlife Code.

19 (4) Any building designated for matters before a

20 circuit court, appellate court, or the Supreme Court, or

21 any building or portion of a building under the control of

22 the Supreme Court.

23 (5) Any building or portion of a building under the

24 control of a unit of local government.

25 (6) Any building, real property, and parking area under

26 the control of an adult or juvenile detention or

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1 correctional institution, prison, or jail.

2 (7) Any building, real property, and parking area under

3 the control of a public or private hospital or hospital

4 affiliate, mental health facility, or nursing home.

5 (8) Any bus, train, or form of transportation paid for

6 in whole or in part with public funds, and any building,

7 real property, and parking area under the control of a

8 public transportation facility paid for in whole or in part

9 with public funds.

10 (9) Any building, real property, and parking area under

11 the control of an establishment that serves alcohol on its

12 premises, if more than 50% of the establishment's gross

13 receipts within the prior 3 months is from the sale of

14 alcohol. The owner of an establishment who knowingly fails

15 to prohibit concealed firearms on its premises as provided

16 in this paragraph or who knowingly makes a false statement

17 or record to avoid the prohibition on concealed firearms

18 under this paragraph is subject to the penalty under

19 subsection (c-5) of Section 10-1 of the Liquor Control Act

20 of 1934.

21 (10) Any public gathering or special event conducted on

22 property open to the public that requires the issuance of a

23 permit from the unit of local government, provided this

24 prohibition shall not apply to a licensee who must walk

25 through a public gathering in order to access his or her

26 residence, place of business, or vehicle.

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1 (11) Any building or real property that has been issued

2 a Special Event Retailer's license as defined in Section

3 1-3.17.1 of the Liquor Control Act during the time

4 designated for the sale of alcohol by the Special Event

5 Retailer's license, or a Special use permit license as

6 defined in subsection (q) of Section 5-1 of the Liquor

7 Control Act during the time designated for the sale of

8 alcohol by the Special use permit license.

9 (12) Any public playground.

10 (13) Any public park, athletic area, or athletic

11 facility under the control of a municipality or park

12 district, provided nothing in this Section shall prohibit a

13 licensee from carrying a concealed firearm while on a trail

14 or bikeway if only a portion of the trail or bikeway

15 includes a public park.

16 (14) Any real property under the control of the Cook

17 County Forest Preserve District.

18 (15) Any building, classroom, laboratory, medical

19 clinic, hospital, artistic venue, athletic venue,

20 entertainment venue, officially recognized

21 university-related organization property, whether owned or

22 leased, and any real property, including parking areas,

23 sidewalks, and common areas under the control of a public

24 or private community college, college, or university.

25 (16) Any building, real property, or parking area under

26 the control of a gaming facility licensed under the

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1 Illinois ~~Riverboat~~ Gambling Act or the Illinois Horse

2 Racing Act of 1975, including an inter-track wagering

3 location licensee.

4 (17) Any stadium, arena, or the real property or

5 parking area under the control of a stadium, arena, or any

6 collegiate or professional sporting event.

7 (18) Any building, real property, or parking area under

8 the control of a public library.

9 (19) Any building, real property, or parking area under

10 the control of an airport.

11 (20) Any building, real property, or parking area under

12 the control of an amusement park.

13 (21) Any building, real property, or parking area under

14 the control of a zoo or museum.

15 (22) Any street, driveway, parking area, property,

16 building, or facility, owned, leased, controlled, or used

17 by a nuclear energy, storage, weapons, or development site

18 or facility regulated by the federal Nuclear Regulatory

19 Commission. The licensee shall not under any circumstance

20 store a firearm or ammunition in his or her vehicle or in a

21 compartment or container within a vehicle located anywhere

22 in or on the street, driveway, parking area, property,

23 building, or facility described in this paragraph.

24 (23) Any area where firearms are prohibited under

25 federal law.

26 (a-5) Nothing in this Act shall prohibit a public or

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1 private community college, college, or university from:

2 (1) prohibiting persons from carrying a firearm within

3 a vehicle owned, leased, or controlled by the college or

4 university;

5 (2) developing resolutions, regulations, or policies

6 regarding student, employee, or visitor misconduct and

7 discipline, including suspension and expulsion;

8 (3) developing resolutions, regulations, or policies

9 regarding the storage or maintenance of firearms, which

10 must include designated areas where persons can park

11 vehicles that carry firearms; and

12 (4) permitting the carrying or use of firearms for the

13 purpose of instruction and curriculum of officially

14 recognized programs, including but not limited to military

15 science and law enforcement training programs, or in any

16 designated area used for hunting purposes or target

17 shooting.

18 (a-10) The owner of private real property of any type may

19 prohibit the carrying of concealed firearms on the property

20 under his or her control. The owner must post a sign in

21 accordance with subsection (d) of this Section indicating that

22 firearms are prohibited on the property, unless the property is

23 a private residence.

24 (b) Notwithstanding subsections (a), (a-5), and (a-10) of

25 this Section except under paragraph (22) or (23) of subsection

26 (a), any licensee prohibited from carrying a concealed firearm

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1 into the parking area of a prohibited location specified in

2 subsection (a), (a-5), or (a-10) of this Section shall be

3 permitted to carry a concealed firearm on or about his or her

4 person within a vehicle into the parking area and may store a

5 firearm or ammunition concealed in a case within a locked

6 vehicle or locked container out of plain view within the

7 vehicle in the parking area. A licensee may carry a concealed

8 firearm in the immediate area surrounding his or her vehicle

9 within a prohibited parking lot area only for the limited

10 purpose of storing or retrieving a firearm within the vehicle's

11 trunk. For purposes of this subsection, "case" includes a glove

12 compartment or console that completely encloses the concealed

13 firearm or ammunition, the trunk of the vehicle, or a firearm

14 carrying box, shipping box, or other container.

15 (c) A licensee shall not be in violation of this Section

16 while he or she is traveling along a public right of way that

17 touches or crosses any of the premises under subsection (a),

18 (a-5), or (a-10) of this Section if the concealed firearm is

19 carried on his or her person in accordance with the provisions

20 of this Act or is being transported in a vehicle by the

21 licensee in accordance with all other applicable provisions of

22 law.

23 (d) Signs stating that the carrying of firearms is

24 prohibited shall be clearly and conspicuously posted at the

25 entrance of a building, premises, or real property specified in

26 this Section as a prohibited area, unless the building or

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1 premises is a private residence. Signs shall be of a uniform

2 design as established by the Department and shall be 4 inches

3 by 6 inches in size. The Department shall adopt rules for

4 standardized signs to be used under this subsection.

5 (Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)

6 Section 90-50. The Criminal Code of 2012 is amended by

7 changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as

8 follows:

9 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

10 Sec. 28-1. Gambling.

11 (a) A person commits gambling when he or she:

12 (1) knowingly plays a game of chance or skill for money

13 or other thing of value, unless excepted in subsection (b)

14 of this Section;

15 (2) knowingly makes a wager upon the result of any

16 game, contest, or any political nomination, appointment or

17 election;

18 (3) knowingly operates, keeps, owns, uses, purchases,

19 exhibits, rents, sells, bargains for the sale or lease of,

20 manufactures or distributes any gambling device;

21 (4) contracts to have or give himself or herself or

22 another the option to buy or sell, or contracts to buy or

23 sell, at a future time, any grain or other commodity

24 whatsoever, or any stock or security of any company, where

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1 it is at the time of making such contract intended by both

2 parties thereto that the contract to buy or sell, or the

3 option, whenever exercised, or the contract resulting

4 therefrom, shall be settled, not by the receipt or delivery

5 of such property, but by the payment only of differences in

6 prices thereof; however, the issuance, purchase, sale,

7 exercise, endorsement or guarantee, by or through a person

8 registered with the Secretary of State pursuant to Section

9 8 of the Illinois Securities Law of 1953, or by or through

10 a person exempt from such registration under said Section

11 8, of a put, call, or other option to buy or sell

12 securities which have been registered with the Secretary of

13 State or which are exempt from such registration under

14 Section 3 of the Illinois Securities Law of 1953 is not

15 gambling within the meaning of this paragraph (4);

16 (5) knowingly owns or possesses any book, instrument or

17 apparatus by means of which bets or wagers have been, or

18 are, recorded or registered, or knowingly possesses any

19 money which he has received in the course of a bet or

20 wager;

21 (6) knowingly sells pools upon the result of any game

22 or contest of skill or chance, political nomination,

23 appointment or election;

24 (7) knowingly sets up or promotes any lottery or sells,

25 offers to sell or transfers any ticket or share for any

26 lottery;

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1 (8) knowingly sets up or promotes any policy game or

2 sells, offers to sell or knowingly possesses or transfers

3 any policy ticket, slip, record, document or other similar

4 device;

5 (9) knowingly drafts, prints or publishes any lottery

6 ticket or share, or any policy ticket, slip, record,

7 document or similar device, except for such activity

8 related to lotteries, bingo games and raffles authorized by

9 and conducted in accordance with the laws of Illinois or

10 any other state or foreign government;

11 (10) knowingly advertises any lottery or policy game,

12 except for such activity related to lotteries, bingo games

13 and raffles authorized by and conducted in accordance with

14 the laws of Illinois or any other state;

15 (11) knowingly transmits information as to wagers,

16 betting odds, or changes in betting odds by telephone,

17 telegraph, radio, semaphore or similar means; or knowingly

18 installs or maintains equipment for the transmission or

19 receipt of such information; except that nothing in this

20 subdivision (11) prohibits transmission or receipt of such

21 information for use in news reporting of sporting events or

22 contests; or

23 (12) knowingly establishes, maintains, or operates an

24 Internet site that permits a person to play a game of

25 chance or skill for money or other thing of value by means

26 of the Internet or to make a wager upon the result of any

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1 game, contest, political nomination, appointment, or

2 election by means of the Internet. This item (12) does not

3 apply to activities referenced in items (6) and (6.1) of

4 subsection (b) of this Section.

5 (b) Participants in any of the following activities shall

6 not be convicted of gambling:

7 (1) Agreements to compensate for loss caused by the

8 happening of chance including without limitation contracts

9 of indemnity or guaranty and life or health or accident

10 insurance.

11 (2) Offers of prizes, award or compensation to the

12 actual contestants in any bona fide contest for the

13 determination of skill, speed, strength or endurance or to

14 the owners of animals or vehicles entered in such contest.

15 (3) Pari-mutuel betting as authorized by the law of

16 this State.

17 (4) Manufacture of gambling devices, including the

18 acquisition of essential parts therefor and the assembly

19 thereof, for transportation in interstate or foreign

20 commerce to any place outside this State when such

21 transportation is not prohibited by any applicable Federal

22 law; or the manufacture, distribution, or possession of

23 video gaming terminals, as defined in the Video Gaming Act,

24 by manufacturers, distributors, and terminal operators

25 licensed to do so under the Video Gaming Act.

26 (5) The game commonly known as "bingo", when conducted

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1 in accordance with the Bingo License and Tax Act.

2 (6) Lotteries when conducted by the State of Illinois

3 in accordance with the Illinois Lottery Law. This exemption

4 includes any activity conducted by the Department of

5 Revenue to sell lottery tickets pursuant to the provisions

6 of the Illinois Lottery Law and its rules.

7 (6.1) The purchase of lottery tickets through the

8 Internet for a lottery conducted by the State of Illinois

9 under the program established in Section 7.12 of the

10 Illinois Lottery Law.

11 (7) Possession of an antique slot machine that is

12 neither used nor intended to be used in the operation or

13 promotion of any unlawful gambling activity or enterprise.

14 For the purpose of this subparagraph (b)(7), an antique

15 slot machine is one manufactured 25 years ago or earlier.

16 (8) Raffles and poker runs when conducted in accordance

17 with the Raffles and Poker Runs Act.

18 (9) Charitable games when conducted in accordance with

19 the Charitable Games Act.

20 (10) Pull tabs and jar games when conducted under the

21 Illinois Pull Tabs and Jar Games Act.

22 (11) Gambling games ~~conducted on riverboats~~when

23 authorized by the Illinois ~~Riverboat~~ Gambling Act.

24 (12) Video gaming terminal games at a licensed

25 establishment, licensed truck stop establishment, licensed

26 fraternal establishment, or licensed veterans

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1 establishment when conducted in accordance with the Video

2 Gaming Act.

3 (13) Games of skill or chance where money or other

4 things of value can be won but no payment or purchase is

5 required to participate.

6 (14) Savings promotion raffles authorized under

7 Section 5g of the Illinois Banking Act, Section 7008 of the

8 Savings Bank Act, Section 42.7 of the Illinois Credit Union

9 Act, Section 5136B of the National Bank Act (12 U.S.C.

10 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.

11 1463).

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. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

21 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)

22 Sec. 28-1.1. Syndicated gambling.

23 (a) Declaration of Purpose. Recognizing the close

24 relationship between professional gambling and other organized

25 crime, it is declared to be the policy of the legislature to

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1 restrain persons from engaging in the business of gambling for

2 profit in this State. This Section shall be liberally construed

3 and administered with a view to carrying out this policy.

4 (b) A person commits syndicated gambling when he or she

5 operates a "policy game" or engages in the business of

6 bookmaking.

7 (c) A person "operates a policy game" when he or she

8 knowingly uses any premises or property for the purpose of

9 receiving or knowingly does receive from what is commonly

10 called "policy":

11 (1) money from a person other than the bettor or player

12 whose bets or plays are represented by the money; or

13 (2) written "policy game" records, made or used over

14 any period of time, from a person other than the bettor or

15 player whose bets or plays are represented by the written

16 record.

17 (d) A person engages in bookmaking when he or she knowingly

18 receives or accepts more than five bets or wagers upon the

19 result of any trials or contests of skill, speed or power of

20 endurance or upon any lot, chance, casualty, unknown or

21 contingent event whatsoever, which bets or wagers shall be of

22 such size that the total of the amounts of money paid or

23 promised to be paid to the bookmaker on account thereof shall

24 exceed $2,000. Bookmaking is the receiving or accepting of bets

25 or wagers regardless of the form or manner in which the

26 bookmaker records them.

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1 (e) Participants in any of the following activities shall

2 not be convicted of syndicated gambling:

3 (1) Agreements to compensate for loss caused by the

4 happening of chance including without limitation contracts

5 of indemnity or guaranty and life or health or accident

6 insurance;

7 (2) Offers of prizes, award or compensation to the

8 actual contestants in any bona fide contest for the

9 determination of skill, speed, strength or endurance or to

10 the owners of animals or vehicles entered in the contest;

11 (3) Pari-mutuel betting as authorized by law of this

12 State;

13 (4) Manufacture of gambling devices, including the

14 acquisition of essential parts therefor and the assembly

15 thereof, for transportation in interstate or foreign

16 commerce to any place outside this State when the

17 transportation is not prohibited by any applicable Federal

18 law;

19 (5) Raffles and poker runs when conducted in accordance

20 with the Raffles and Poker Runs Act;

21 (6) Gambling games conducted on riverboats, in

22 casinos, or at electronic gaming facilitieswhen

23 authorized by the Illinois ~~Riverboat~~ Gambling Act;

24 (7) Video gaming terminal games at a licensed

25 establishment, licensed truck stop establishment, licensed

26 fraternal establishment, or licensed veterans

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1 establishment when conducted in accordance with the Video

2 Gaming Act; and

3 (8) Savings promotion raffles authorized under Section

4 5g of the Illinois Banking Act, Section 7008 of the Savings

5 Bank Act, Section 42.7 of the Illinois Credit Union Act,

6 Section 5136B of the National Bank Act (12 U.S.C. 25a), or

7 Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).

8 (f) Sentence. Syndicated gambling is a Class 3 felony.

9 (Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

10 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)

11 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is

12 any real estate, vehicle, boat or any other property whatsoever

13 used for the purposes of gambling other than gambling conducted

14 in the manner authorized by theIllinois ~~Riverboat~~ Gambling Act

15 or the Video Gaming Act. Any person who knowingly permits any

16 premises or property owned or occupied by him or under his

17 control to be used as a gambling place commits a Class A

18 misdemeanor. Each subsequent offense is a Class 4 felony. When

19 any premises is determined by the circuit court to be a

20 gambling place:

21 (a) Such premises is a public nuisance and may be proceeded

22 against as such, and

23 (b) All licenses, permits or certificates issued by the

24 State of Illinois or any subdivision or public agency thereof

25 authorizing the serving of food or liquor on such premises

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1 shall be void; and no license, permit or certificate so

2 cancelled shall be reissued for such premises for a period of

3 60 days thereafter; nor shall any person convicted of keeping a

4 gambling place be reissued such license for one year from his

5 conviction and, after a second conviction of keeping a gambling

6 place, any such person shall not be reissued such license, and

7 (c) Such premises of any person who knowingly permits

8 thereon a violation of any Section of this Article shall be

9 held liable for, and may be sold to pay any unsatisfied

10 judgment that may be recovered and any unsatisfied fine that

11 may be levied under any Section of this Article.

12 (Source: P.A. 96-34, eff. 7-13-09.)

13 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)

14 Sec. 28-5. Seizure of gambling devices and gambling funds.

15 (a) Every device designed for gambling which is incapable

16 of lawful use or every device used unlawfully for gambling

17 shall be considered a "gambling device", and shall be subject

18 to seizure, confiscation and destruction by the Department of

19 State Police or by any municipal, or other local authority,

20 within whose jurisdiction the same may be found. As used in

21 this Section, a "gambling device" includes any slot machine,

22 and includes any machine or device constructed for the

23 reception of money or other thing of value and so constructed

24 as to return, or to cause someone to return, on chance to the

25 player thereof money, property or a right to receive money or

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1 property. With the exception of any device designed for

2 gambling which is incapable of lawful use, no gambling device

3 shall be forfeited or destroyed unless an individual with a

4 property interest in said device knows of the unlawful use of

5 the device.

6 (b) Every gambling device shall be seized and forfeited to

7 the county wherein such seizure occurs. Any money or other

8 thing of value integrally related to acts of gambling shall be

9 seized and forfeited to the county wherein such seizure occurs.

10 (c) If, within 60 days after any seizure pursuant to

11 subparagraph (b) of this Section, a person having any property

12 interest in the seized property is charged with an offense, the

13 court which renders judgment upon such charge shall, within 30

14 days after such judgment, conduct a forfeiture hearing to

15 determine whether such property was a gambling device at the

16 time of seizure. Such hearing shall be commenced by a written

17 petition by the State, including material allegations of fact,

18 the name and address of every person determined by the State to

19 have any property interest in the seized property, a

20 representation that written notice of the date, time and place

21 of such hearing has been mailed to every such person by

22 certified mail at least 10 days before such date, and a request

23 for forfeiture. Every such person may appear as a party and

24 present evidence at such hearing. The quantum of proof required

25 shall be a preponderance of the evidence, and the burden of

26 proof shall be on the State. If the court determines that the

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1 seized property was a gambling device at the time of seizure,

2 an order of forfeiture and disposition of the seized property

3 shall be entered: a gambling device shall be received by the

4 State's Attorney, who shall effect its destruction, except that

5 valuable parts thereof may be liquidated and the resultant

6 money shall be deposited in the general fund of the county

7 wherein such seizure occurred; money and other things of value

8 shall be received by the State's Attorney and, upon

9 liquidation, shall be deposited in the general fund of the

10 county wherein such seizure occurred. However, in the event

11 that a defendant raises the defense that the seized slot

12 machine is an antique slot machine described in subparagraph

13 (b) (7) of Section 28-1 of this Code and therefore he is exempt

14 from the charge of a gambling activity participant, the seized

15 antique slot machine shall not be destroyed or otherwise

16 altered until a final determination is made by the Court as to

17 whether it is such an antique slot machine. Upon a final

18 determination by the Court of this question in favor of the

19 defendant, such slot machine shall be immediately returned to

20 the defendant. Such order of forfeiture and disposition shall,

21 for the purposes of appeal, be a final order and judgment in a

22 civil proceeding.

23 (d) If a seizure pursuant to subparagraph (b) of this

24 Section is not followed by a charge pursuant to subparagraph

25 (c) of this Section, or if the prosecution of such charge is

26 permanently terminated or indefinitely discontinued without

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1 any judgment of conviction or acquittal (1) the State's

2 Attorney shall commence an in rem proceeding for the forfeiture

3 and destruction of a gambling device, or for the forfeiture and

4 deposit in the general fund of the county of any seized money

5 or other things of value, or both, in the circuit court and (2)

6 any person having any property interest in such seized gambling

7 device, money or other thing of value may commence separate

8 civil proceedings in the manner provided by law.

9 (e) Any gambling device displayed for sale to a riverboat

10 gambling operation, casino gambling operation, or electronic

11 gaming facility or used to train occupational licensees of a

12 riverboat gambling operation, casino gambling operation, or

13 electronic gaming facility as authorized under the Illinois

14 ~~Riverboat~~Gambling Act is exempt from seizure under this

15 Section.

16 (f) Any gambling equipment, devices and supplies provided

17 by a licensed supplier in accordance with theIllinois

18 ~~Riverboat~~Gambling Act which are removed froma ~~the~~ riverboat,

19 casino, or electronic gaming facility for repair are exempt

20 from seizure under this Section.

21 (g) The following video gaming terminals are exempt from

22 seizure under this Section:

23 (1) Video gaming terminals for sale to a licensed

24 distributor or operator under the Video Gaming Act.

25 (2) Video gaming terminals used to train licensed

26 technicians or licensed terminal handlers.

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1 (3) Video gaming terminals that are removed from a

2 licensed establishment, licensed truck stop establishment,

3 licensed fraternal establishment, or licensed veterans

4 establishment for repair.

5 (Source: P.A. 98-31, eff. 6-24-13.)

6 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)

7 Sec. 28-7. Gambling contracts void.

8 (a) All promises, notes, bills, bonds, covenants,

9 contracts, agreements, judgments, mortgages, or other

10 securities or conveyances made, given, granted, drawn, or

11 entered into, or executed by any person whatsoever, where the

12 whole or any part of the consideration thereof is for any money

13 or thing of value, won or obtained in violation of any Section

14 of this Article are null and void.

15 (b) Any obligation void under this Section may be set aside

16 and vacated by any court of competent jurisdiction, upon a

17 complaint filed for that purpose, by the person so granting,

18 giving, entering into, or executing the same, or by his

19 executors or administrators, or by any creditor, heir, legatee,

20 purchaser or other person interested therein; or if a judgment,

21 the same may be set aside on motion of any person stated above,

22 on due notice thereof given.

23 (c) No assignment of any obligation void under this Section

24 may in any manner affect the defense of the person giving,

25 granting, drawing, entering into or executing such obligation,

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1 or the remedies of any person interested therein.

2 (d) This Section shall not prevent a licensed owner of a

3 riverboat gambling operation, casino gambling operation, or an

4 electronic gaming licensee under the Illinois Gambling Act and

5 the Illinois Horse Racing Act of 1975 from instituting a cause

6 of action to collect any amount due and owing under an

7 extension of credit to a~~riverboat~~ gambling patron as

8 authorized under Section 11.1 of the Illinois~~Riverboat~~

9 Gambling Act.

10 (Source: P.A. 87-826.)

11 Section 90-55. The Eminent Domain Act is amended by adding

12 Section 15-5-48 as follows:

13 (735 ILCS 30/15-5-48 new)

14 Sec. 15-5-48. Eminent domain powers in new Acts. The

15 following provisions of law may include express grants of the

16 power to acquire property by condemnation or eminent domain:

17 Chicago Casino Development Authority Act; City of Chicago; for

18 the purposes of the Act.

19 Section 90-60. The Payday Loan Reform Act is amended by

20 changing Section 3-5 as follows:

21 (815 ILCS 122/3-5)

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1 Sec. 3-5. Licensure.

2 (a) A license to make a payday loan shall state the

3 address, including city and state, at which the business is to

4 be conducted and shall state fully the name of the licensee.

5 The license shall be conspicuously posted in the place of

6 business of the licensee and shall not be transferable or

7 assignable.

8 (b) An application for a license shall be in writing and in

9 a form prescribed by the Secretary. The Secretary may not issue

10 a payday loan license unless and until the following findings

11 are made:

12 (1) that the financial responsibility, experience,

13 character, and general fitness of the applicant are such as

14 to command the confidence of the public and to warrant the

15 belief that the business will be operated lawfully and

16 fairly and within the provisions and purposes of this Act;

17 and

18 (2) that the applicant has submitted such other

19 information as the Secretary may deem necessary.

20 (c) A license shall be issued for no longer than one year,

21 and no renewal of a license may be provided if a licensee has

22 substantially violated this Act and has not cured the violation

23 to the satisfaction of the Department.

24 (d) A licensee shall appoint, in writing, the Secretary as

25 attorney-in-fact upon whom all lawful process against the

26 licensee may be served with the same legal force and validity

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1 as if served on the licensee. A copy of the written

2 appointment, duly certified, shall be filed in the office of

3 the Secretary, and a copy thereof certified by the Secretary

4 shall be sufficient evidence to subject a licensee to

5 jurisdiction in a court of law. This appointment shall remain

6 in effect while any liability remains outstanding in this State

7 against the licensee. When summons is served upon the Secretary

8 as attorney-in-fact for a licensee, the Secretary shall

9 immediately notify the licensee by registered mail, enclosing

10 the summons and specifying the hour and day of service.

11 (e) A licensee must pay an annual fee of $1,000. In

12 addition to the license fee, the reasonable expense of any

13 examination or hearing by the Secretary under any provisions of

14 this Act shall be borne by the licensee. If a licensee fails to

15 renew its license by December 31, its license shall

16 automatically expire; however, the Secretary, in his or her

17 discretion, may reinstate an expired license upon:

18 (1) payment of the annual fee within 30 days of the

19 date of expiration; and

20 (2) proof of good cause for failure to renew.

21 (f) Not more than one place of business shall be maintained

22 under the same license, but the Secretary may issue more than

23 one license to the same licensee upon compliance with all the

24 provisions of this Act governing issuance of a single license.

25 The location, except those locations already in existence as of

26 June 1, 2005, may not be within one mile of a horse race track

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1 subject to the Illinois Horse Racing Act of 1975, within one

2 mile of a facility at which gambling is conducted under the

3 Illinois~~Riverboat~~ Gambling Act, within one mile of the

4 location at which a riverboat subject to theIllinois ~~Riverboat~~

5 Gambling Act docks, or within one mile of any State of Illinois

6 or United States military base or naval installation.

7 (g) No licensee shall conduct the business of making loans

8 under this Act within any office, suite, room, or place of

9 business in which (1) any loans are offered or made under the

10 Consumer Installment Loan Act other than title secured loans as

11 defined in subsection (a) of Section 15 of the Consumer

12 Installment Loan Act and governed by Title 38, Section 110.330

13 of the Illinois Administrative Code or (2) any other business

14 is solicited or engaged in unless the other business is

15 licensed by the Department or, in the opinion of the Secretary,

16 the other business would not be contrary to the best interests

17 of consumers and is authorized by the Secretary in writing.

18 (g-5) Notwithstanding subsection (g) of this Section, a

19 licensee may obtain a license under the Consumer Installment

20 Loan Act (CILA) for the exclusive purpose and use of making

21 title secured loans, as defined in subsection (a) of Section 15

22 of CILA and governed by Title 38, Section 110.300 of the

23 Illinois Administrative Code. A licensee may continue to

24 service Consumer Installment Loan Act loans that were

25 outstanding as of the effective date of this amendatory Act of

26 the 96th General Assembly.

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1 (h) The Secretary shall maintain a list of licensees that

2 shall be available to interested consumers and lenders and the

3 public. The Secretary shall maintain a toll-free number whereby

4 consumers may obtain information about licensees. The

5 Secretary shall also establish a complaint process under which

6 an aggrieved consumer may file a complaint against a licensee

7 or non-licensee who violates any provision of this Act.

8 (Source: P.A. 96-936, eff. 3-21-11.)

9 Section 90-65. The Travel Promotion Consumer Protection

10 Act is amended by changing Section 2 as follows:

11 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)

12 Sec. 2. Definitions.

13 (a) "Travel promoter" means a person, including a tour

14 operator, who sells, provides, furnishes, contracts for,

15 arranges or advertises that he or she will arrange wholesale or

16 retail transportation by air, land, sea or navigable stream,

17 either separately or in conjunction with other services.

18 "Travel promoter" does not include (1) an air carrier; (2) a

19 sea carrier; (3) an officially appointed agent of an air

20 carrier who is a member in good standing of the Airline

21 Reporting Corporation; (4) a travel promoter who has in force

22 $1,000,000 or more of liability insurance coverage for

23 professional errors and omissions and a surety bond or

24 equivalent surety in the amount of $100,000 or more for the

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1 benefit of consumers in the event of a bankruptcy on the part

2 of the travel promoter; or (5) a riverboat subject to

3 regulation under theIllinois ~~Riverboat~~ Gambling Act.

4 (b) "Advertise" means to make any representation in the

5 solicitation of passengers and includes communication with

6 other members of the same partnership, corporation, joint

7 venture, association, organization, group or other entity.

8 (c) "Passenger" means a person on whose behalf money or

9 other consideration has been given or is to be given to

10 another, including another member of the same partnership,

11 corporation, joint venture, association, organization, group

12 or other entity, for travel.

13 (d) "Ticket or voucher" means a writing or combination of

14 writings which is itself good and sufficient to obtain

15 transportation and other services for which the passenger has

16 contracted.

17 (Source: P.A. 91-357, eff. 7-29-99.)

18 (30 ILCS 105/5.490 rep.)

19 Section 90-70. The State Finance Act is amended by

20 repealing Section 5.490.

21 (230 ILCS 5/54 rep.)

22 Section 90-75. The Illinois Horse Racing Act of 1975 is

23 amended by repealing Section 54.

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1 ARTICLE 99.

2 Section 99-97. Severability. The provisions of this Act are

3 severable under Section 1.31 of the Statute on Statutes.

4 Section 99-99. Effective date. This Act takes effect upon

5 becoming law.".